The Federal Reserve System

"History records that the money changers have used every form of abuse, intrigue, deceit, and violent means possible, to maintain their control over governments, by controlling money and its issuance."- James Madison

"I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs."
- Thomas Jefferson, Letter to the Secretary of the Treasury Albert Gallatin

I hope I don't fail at this explanation. It's a complicated subject. It's not meant to be understood by very many people, so I'm going to try to simplify a very complex technical procedure.

Alright... so what is the Federal Reserve System? The Federal Reserve System is not Federal, you can access its phone number in the business pages of any public phone book, it is not a Reserve because its a bank of issue, and it is not a system either. Instead the Fed is what Eustace Mullins terms a "criminal syndicate" and is the product of international Jewish activity. Like any other company it has its own stock. The Federal Reserve Act of 1913 stipulates, however, that the only owners of its stock can be those who it is bequeathed to and those families that made the initial stock purchase. These families are the Rothschilds of the Bank of England, the Rockefellers, the Warburgs, the Schiffs, the Harrimans, the Morgans and others which comprise what Mullins terms "the World Order." The Fed was created for two purposes: to seize control of money and credit of the people of the united States and to finance wars. By controlling the issuance of money, the Federal Reserve controls the value thereof. How is this accomplished? Allow me to quote Mullins: The Federal Reserve Board of Governors, meeting in private as the Federal Open Market Committee with presidents of the Federal Reserve Banks, controls all economic activity throughout the United States by issuing orders to buy government bonds on the open market, creating money out of nothing and causing inflationary pressure, or, conversely, by selling government bonds on the open market and extinguishing debt, creating deflationary pressure and causing the stock market to drop.

Article 1, Section 8, paragraph 5 of the Constitution expressly charges Congress to coin money and regulate the value thereof. This is the most important part of the Constitution as it is the spine of Constitutional governance. Once the position is relaxed, America ceases to be free. On the night of November 22nd, 1910, Senator Nelson Aldrich and Jewish emigrant Paul Warburg led a delegation of financiers from the Brunswich Station of Hoboken, New Jersey to meet in secret at Jekyll Island, Georgia to hatch this sinister plot. Three years later, Paul Warburg's creation was installed overtop the united States government.

It wouldn't be usurious if the Federal Reserve loaned interest free money to Congress and allowed Congress to pay it back by printing up its own interest free money. But then there wouldn't be much purpose for a Federal Reserve because why would Congress allow a seperate entity the performance of a duty the Constitution granted Congress the power to do in the first place? It becomes a scam when the Federal Reserve issues interest bearing currency and disallows government to print up its own non-interest bearing currency to pay it off. This is beneficial to the Federal Reserve bankers because the Fed forces Congress into paying off its debt to the Fed by using the same procedure that creates the debt. Meanwhile, to collect the interest of the debt directly from the people, the Fed uses its private collection agency, the Internal Revenue Service with its unconstitutional federal income tax. During Reagan's presidency a commission was formed and led by J. Peter Grace. The Grace Commission reported that "100% of what is collected is absorbed solely by interest on the Federal Debt ... all individual income tax revenues are gone before one nickel is spent on the services taxpayers expect from government."

This mean that not one penny of federal income tax goes to pay for schools, police, libraries, fire departments, roadways, road work, or anything else. This is all paid for by state and local taxes. "But, Mr. Goldbug," you'll ask, "if the federal income tax goes to pay off the national interest of the national debt, then where does all the other money come from to pay for social security, medicare, medicaid, the umemployment wage, our military adventures, et cetera ad infinitum?"

Six months before the fiscal year begins, which starts in October, the President sends a budget proposal to Congress. If Congress doesn’t agree with the President’s budget proposal then the House of Representatives prepares their own budget proposal and then sends it to the Senate. If the Senate doesn’t approve of the budget proposal sent to them from the House of Representatives then the House of Representatives has to revise it and send it again. If the Senate doesn’t approve of the budget proposal sent to them from the House of Representatives the second time then the House of Representatives and Senate get together and jointly forms a budget agreement. Now, if the budget agreed upon exceeds the amount collected from taxes through the IRS, then the U.S. Treasury holds bond auctions to fill in the separation in the budget gap created by not collecting enough taxes. At these U.S. Treasury bond auctions, 22 primary dealers (representatives from Citibank, Goldman Sachs, J.P. Morgan-Chase, Morgan Stanley, etc) who are required by government to attend, purchase the bonds to keep the country running. The U.S. Mint doesn’t just print dollar bills of varying denomination, the U.S. Mint also prints bonds of varying maturities. And here's the catch. For the banks to be a part of the Federal Reserve System, they have to hold government bonds in their core portfolios. The central bank system with its fractional-reserve lending (which is to say being able to lend out 9x the one held in reserve) is inherently anti-free market because from its very inception it is a monopoly cartel. The Federal Open Market Committee protects the banks from competition in the market place. And the members of the Fortune 500 all benefit from this monopoly. The prophecy of Thomas Jefferson has come to pass.

Most economists would have you believe that rising prices is inflation. This is incorrect. Austrian economic theory teaches us that inflation is the increase in the money supply and the rise in prices is a consequence of inflation. The popular misconception is that prices are rising, which is only half-truth. The devaluation of the dollar causes the prices to rise. The devaluation, however, doesn't happen at all once and to the same degree. As the Fed increases the money supply, the politically well connected -- goverment contractors, big banks, etc -- they enjoy a windfall. As the new money ripples out into the marketplace at a widening geometric-ratio, there is an immediate redistribution effect. Before the newly created money reaches the mass of people, businesses have already adjusted their prices while the average Joe suffers from living off an income that hasn't adjusted. The true losers in this cruel game of Robin Hood are the ones on fixed incomes (annuities, pensions, etc) because they never get to enjoy the money at all. This not only becomes a redistribution of wealth but also a hidden insidious tax which is far more underhanded than any other obvious tax. How is this so? The rich expropriate the middle class and the poor through the windfall of inflation and the value of the dollar which the people rely on as an instrument to barter with has been stolen from them. The liberal socialists are always complaining about an ever widening gap between the rich and the poor but never do they understand what causes this. And this is why there are so many more billionaires on Wall Street than ever before.

So with the ability to charge government interest on inflation and collect from the people of the government, the Rothschild banking family has been able to amass fortunes no other family in history of the world has been able to accomplish. And they have their signature banks all around the world, charging interest on inflation, turning once powerful countries into third-world plantations by invention of "trade agreements". Then with the money they've made through theft, they fund and create wars to use as pretext excuses for global government which they achieve by criss-crossing the world stringing each nation together into a heavily laced network under the umbrella of the U.N. Once someone becomes the richest man in the world the next step is to become the most powerful man in the universe.

Jesus Christ can be found in the Bible speaking out against such Jewish treachery.