Sunday, March 18, 2007

A bit about the Federal Reserve Bank

I have made mention that the Federal Reserve Bank is unconstitutional. Many times I have been told that I am wrong, that I don't know what I am talking about. I would like to lay out my reasons for believing this.

Article I, Section 8 of the Constitution gives the power to coin money to the Congress. On December 23, 1913, the U.S. Congress gave that power over to a central bank, owned by a consortium of privately owned banks. This bank was named the Federal Reserve Bank, a name that is misleading because, although the Chairman is selected by the President, it is not run by the U.S. Government. Essentially, the Act divided the United States into 12 different regions, assigning each region its own federal bank.

The Congress did this during Christmas recess and the Senate, with only 3 members present, approved it with a unanimous voice vote. There was not a quorum present, and therefore was not legally passed into law.

The Ninth Circuit Court of Appeals ruled that the FED is not, in fact, a federal institution.
John L. Lewis, Plaintiff/Appellant,
United States of America, Defendant/Appellee.
No. 80-5905
United States Court of Appeals, Ninth Circuit.
Submitted March 2, 1982.
Decided April 19, 1982.
As Amended June 24, 1982.
Plaintiff, who was injured by vehicle owned and operated by a federal reserve bank, brought action alleging jurisdiction under the Federal Tort Claims Act.
The United States District Court for the Central District of California, David W. Williams, J., dismissed holding that federal reserve bank was not a federal agency
within meaning of Act and that the court therefore lacked subject-matter jurisdiction. Appeal was taken. The Court of Appeals, Poole, Circuit Judge, held that federal reserve banks are not federal instrumentalities for purposes of the Act, but are independent, privately owned and locally controlled corporations.

Representative Louis T. McFadden said, in regards to the FED, "We have in this country one of the most corrupt institutions the world has ever known. I refer to the Federal Reserve Board...This evil institution has impovershed...the people of the United States...and has practically bankrupted our government. It has done this through...the corrupt practices of the moneyed vultures who control it."

To understand how the FED has ruined this country, you have to understand the concept of fractional reserve banking. Fractional reserve banking is a system in which only a fraction of the total deposits managed by a bank must be kept in reserve. In the U.S., this system is maintained by the Federal Reserve Board.

Since the United States no longer has its own currency, it has to borrow money from somewhere to operate. If you think your tax dollars goes toward the operation of the government, why do we have a national debt? The government is borrowing money from the FED to operate. Your taxes are going towards the paying of interest on that loan. Even so, the U.S. debt is so huge that we are borrowing additional money from the FED just to pay for the interest, which money, in turn, is charged additional interest.
The Federal Reserve Bank is therefore lending money to the United States Government, THAT IT DOES NOT HAVE TO BEGIN WITH! It is then charging interest on that money, which is paid for by your taxes.

Thomas Jefferson again lamented this cycle of borrowing when he stated, “I wish it were possible to obtain a single amendment to our Constitution--taking from the federal government their power of borrowing“

Take out a dollar bill from your wallet and see what it says on it. It says Federal Reserve Note. Nowhere does it say anything at all about being United States currency On the top of the old United States Notes, and at the bottom is used to say, WILL PAY TO THE BEARER ON DEMAND. In 1963 those words were removed from all newly issued Federal Reserve Notes, making them a worthless fiat currency. Try taking a dollar bill to any Federal Reserve Bank and redeeming it for gold or silver.

The fight for control over our money system has been going on since the time of the revolutionary war. Thomas Jefferson warned of the dangers of allowing banking systems to control our money, "If the American people ever allow private banks to control the issue of their money, first by inflation and then by deflation, the banks and corporations that will grow up around them (around the banks), will deprive the people of their property until their children will wake up homeless on the continent their fathers conquered."
Isn't that exactly what the FED does? You see it all the time if you pay attention to the stock market. When inflation rises, the Federal Reserve Chairman constantly raises and lowers interest to control our economy. Exactly what Jefferson warned us about.

Before the Revolutionary War the United States was prospering. On a trip to England, the Bank of England asked Benjamin Franklin to explain the reasons for the economic success of the colonies. Franklin replied, "That is simple. In the colonies we issue our own money. It is called Colonial Scrip. We issue it in proper proportion to demands of trade and industry to make the products pass easily from the producers to the consumers. In this manner, creating for ourselves our own paper money, we control its purchasing power, and we have no interest to pay no one."

Almost immediately, under pressure by the Bank of England, the English Parliament passed the Currency Act of 1764 which prohibited the colonies from making their own money. They were placed upon a gold standard. In his autobiography Franklin tells what happened next, "In one year, the conditions were so reversed that the era of prosperity ended, and a depression set in, to such and extent that the streets of the Colonies were filled with unemployed."

Why the interest in controlling the currency of the United States? If you think about money as a commodity you can understand that if someone has a monopoly on that commodity they can raise or lower the price of it to benefit them. Not only that, if someone controls the money of a country, they control that country.

Otto Von Bismarck, Chancellor of Germany, 1871, made the following statement, "The division of the United States into federations of equal force was decided long before the civil war by the high financial powers of Europe. These bankers were afraid that the United States, if they remained as one block, would obtain economic and financial independence which would upset their financial domination over the world."

Therefore the Central Banks realized they must stop the United States from controlling its own currency. Former President Andrew Jackson realized this and fought to take this power from the central banks.

“Controlling our currency, receiving our public moneys, and holding thousands of our citizens in dependence--would be formidable and dangerous than a military power of the enemy.” Andrew Jackson

At the time Jackson was elected President the United States the Federal Bank had control of our currency. Jackson vowed to route them out like a den of vipers. However, the head of the U.S. Bank, Nicholas Biddle made the following statements, showing just how serious they were in maintaining control of our money, "This worthy President thinks that because he has scalped Indians and imprisoned Judges, he is to have his way with the Bank. He is mistaken."

To show President Johnson what they would do to the people of the country, Biddle made the following statement,

"Nothing but widespread suffering will have any effect on Congress...Our only safety is in pursuing a steady course of firm restriction-and I have no doubt that such a course will ultimately lead to the restoration of the currency and the recharter of the bank. "

Even under threat from the Federal Bank, Jackson was successful in blocking the renewal of their charter. After doing so he became the only President to ever pay off the national debt, and the U.S thrived and prospered as it expanded westward.

After the Central Banks charter was allowed to expire they considered a way to regain control of U.S. currency. They reverted to the timeless scheme of war to create national debt. So the plans to start a civil war in the United States was hatched.

History teaches us that the Civil War was fought over slavery. According to the words of President Lincoln himself, he had no interest in stopping the practice of slavery.
"I have no purpose, directly or indirectly, to interfere with the institution of slavery in the states where it now exists. I believe I have no lawful right to do so, and I have no inclination to do so."

So, if the Civil War was not about slavery, what caused it? The Northern Industrialists had used protective tariffs to prevent the southern states from buying cheaper European goods. Europe retaliated by buying cotton from the south. The south was faced with paying higher prices for their goods and a loss of income from their cotton sales. So they seceded from the Union.

When President Abraham Lincoln was wondering how to finance the Civil War, he was told, “Why Lincoln, that is easy; just get Congress to pass a bill authorizing the printing of full legal tender treasury notes...and pay your soldiers with them and go ahead and win your war with them also.”

When Lincoln asked if the people would accept them he was again told, ‘The people or anyone else will not have any choice in the matter, if you make them full legal tender. They will have the full sanction of the government and be just as good as any money; as Congress is given that express right by the Constitution.”

It should be now apparent that our government has the right to print its own money. The idea of a centralized, privately owned Federal Bank is a violation of Constitutional principle.

I leave you now with the words of former New York Mayor, John Hylan, “The real menace to our Republic is the invisible government which like a giant octopus sprawls its slimy legs over our cities, states and nation. At the head is a small group of banking houses... This little our government for their own selfish ends. It operates under cover of a self-created screen...seizes...our executive officers...legislative bodies...schools...courts...newspapers and every agency created for the public protection.”

That is why I believe the FED and their influence over our economy is unconstitutional.

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