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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 dire
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
An interested viewer responds to this article:
Feb 2010
Hi,
I base my comments on books I've read by Murray Rothbard.
Your 'FED
Rip-Off' article by Charles Reese is fairly accurate, but could
be tightened up. For example, Congress was not "foolish" when it
legitimized the Fed in 1913. Its collected intention was well thought
out well in advance and in full understanding of the risk it presented
to the citizenry of this country. Congress was corrupted by central
banking lobbyists of that time, and implemented this corrupt plan out of
antipathy, greed, and personal self-interest. The uninformed masses
might be guilty of being foolish, except that they were and continue to
be carefully manipulated by these financial parasites. Thank God for the
Internet. At least alternative explanations are now more readily
accessible to the common tax payer.
The other important point to make known to the public is that the
central bank was in, albeit covert, operation almost as long as we have
been a country. This system of fractal reserve banking is what caused
previous financial disasters in our country prior to 1913. Fiat currency
(known as "Continentals") was actually printed and used to finance our
revolutionary war against the English. It's important to mention since
the popular zeitgeist spawned then and continuously propagated by the
Fed and its affiliates is that the Fed was created and exists today as a
benevolent entity meant only to stabilize our economy, support our
businesses, and prevent future financial crises similar to the ones that
had occurred prior to the official birth of the Fed. As Rothbard
mentions in "The Mystery of Banking," it takes centuries of propaganda
and cultivated trust to turn such a lie into "truth."
If you need assistance modifying this article, or replacing it with
something similar but more up-to-date, please let me know. I could send
you a draft, and you could review and publish as you deem appropriate.
Thanks.
Peter L
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