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This paper is presented in an historical context and is indicative of the various rants, raves, treatises, etc., that were prevalent in the old BBS (Bulletin Board Service) days. Content has not been changed, though formatting changes may have taken place to make it more presentable. (Spelling, sentence/paragraph structure, etc.) Wherever possible, credit is given to the originating source.

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FEDERAL RESERVE'S CENTRAL BANK: IT'S A RIP-OFF
By Charles Reese 

There is, believe it or not, a move in Congress to make some slight reforms to the Federal Reserve System. Alan Greenspan, the chairman of the central bank, naturally is predicting the direct economic consequences if Congress dares meddle with the Fed. Of course, the nation has suffered dire economic consequences as a result of the Federal Reserve since the day it was created. That's what central banks do - make a few insiders rich and create dire economic consequences for everyone else. You should write Rep Henry Gonzalez, chairman of the House Banking Committee, and thank him for being honest. 

What, you might ask, is the Federal Reserve? Well, it is the crown jewel of the Eastern Establishment, a carbon copy with minor cosmetic changes of the central banks of Europe which ripped off people long before a foolish Congress imposed one on us in 1913. While those who designed the Fed, principally the henchmen of the Rockefellers and Morgans, were careful to make it complicated (lest people figure out how they were being taken to the cleaners), the guts of the engine are fairly simple to understand.

"HOW CAN THE FED CREATE MONEY OUT OF NOTHING AND THEN CHARGE INTEREST FOR IT? BECAUSE CONGRESS GAVE IT THE POWER" 

The Constitution authorizes Congress to coin money and set its value. Congress could, if it wished, issue money on the good faith and credit of the United States government. That's what Abraham Lincoln did when he found out how much interest the banks wanted to charge the government for loans to finance the Civil War. The trouble with the government issuing its own money - from the bankers' point of view - is that they can't make money on the deal. Consequently, they prefer to dupe or bribe governments into creating a central bank.

That's what the Federal Reserve is. It is a central bank - a bank for the government and a bank for the banks. Consequently, it is the Fed, not the government, which issues money. The bills in your wallet are Federal Reserve Notes.

Instead of the government issuing its own money, interest free, it borrows money at interest from the central bank. Well, you might think, that's fair. If the government borrows money from the central bank, it ought to pay interest. But, aha, you don't know where the central bank gets the money it lends to the government. It creates it out of thin air, with the stroke of a computer key.

How can the Fed create money out of nothing and then charge interest for it? Because Congress gave it the power. In short, the government, instead of creating its own money interest free, authorizes the central bank to create money and then lend it to the government at interest. As Thomas Alva Edison once pointed out, this is stupid! If the government can issue a bond backed by its faith and credit, it can also issue a dollar bill.

The Fed, by the way, is privately owned - it is not a government agency. There is a Federal Reserve Board made up of seven people appointed by the president to long and staggered terms. The other five members are presidents of the regional reserve banks, whose stock is owned by banks, and whose officers are chosen by banks. The General Accounting Office cannot even audit the Federal Reserve. The board meetings are closed to the public. That's two of the things Gonzalez wants to modify.

It is this central bank, however, that determines if money is short or loose, whether we have inflation or deflation, high interest or low interest. History shows these decisions are made, not for the benefit of the people, but for the benefit of banking and financial insiders who created the system. In short, the whole scheme is a rip-off of the American people.

THE NATIONAL EDUCATOR,
1051-E South Lemon, Fullerton, CA 92632

 

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