When considering the political background and banking ties of many recent Obama appointments, I feel the only way the appointees will facilitate change is if they can see and learn from their mistakes. If Geithner is any example of their attitudes, I’m guessing they have not been humbled by their mistakes and do not intend to implement lessons they’ve learned. They probably don’t think they played any consequential part in events leading to this crisis. Therefore, I am not hopeful for change.
In the book titled Mastery, the author, George Leonard, writes about homeostasis and its effects on us as individuals and a society -- homeostasis being a condition of equilibrium, a resistance to change. He writes, “Although we might think that our culture is mad for the new, the predominant function…is the survival of things as they are.” (p. 110) It kind of explains why the things Napoleon Hill writes about in the book Think and Grow Rich are still entirely applicable more than 70 years later. It’s amazing how much we as people and as a culture have not changed. This isn’t to say we can’t change, it’s only to say that homeostasis is a force that we have to recognize, manage, and overcome to implement true, long-term or permanent change.
In the definition from www.websters-online-dictionary.org, about homeostasis there is written, “A frequent paradox for those responsible for the maintenance and evolution of a complex system (be it a body, an ecosystem, a state, or a planet) is how can a stable organization whose goal is to maintain itself and endure, be able to change and evolve?” This is the President's, the appointees', and the government’s challenge.
Not new to me only because I stumbled into the truth
First of all. Thank you for putting this together. Great timing and based on your table of contents so far, great direction.
A year ago I had no concept of what the Federal Reserve actually was. Over the past year I have studied the Federal Reserve system from the academic perspective of the Austrian School of Economics, and Ludwig Von Mises.
Had I not been studying this already I would have remained as I was before, shrugging off any "conspiracy" and remaining in the dark... like everyone else I know.
Robert,
Thank you for writing about this subject. My Grandpa lived with our family back in the 70's. He had my mother type up, and put together his thoughts and life experience, regarding our government and his concerns about the country and the American People. (I was 12 years old)
I admit it is not well written, but it covers a lot aspects that you are bringing to the forefront in you current book. The following is his introductory note:
"This little book was inspired by sixty years of frustration from watching the American people being led to their econimcal ruin by the International Bankers and The Money Trust System.
The very indifference of people, has made it possible for the bankers to carry on a system of pyramiding that surpasses anything ever tried by anyone.
My purpose in publishing these rhymes is to put in simple language facts they can understand and I hope enjoy reading.
R.K. Hahn"
Published in 1975.
I, myself, have always paid attention to the old stories and listened to their content. I also watched to make sure people walked their talk. Grandpa's concerns about the education system was just that. Government Run Programs, program your children to think the way the Government wants you to think. (My grandma, his wife, was a school teacher). Grandpa was VERY aware of the Federal Reserve System and the fact that he considered it Unconstitutional. There is a misfortune in the fact that I was so young, researching information back then was not as accessable as it is today. Most educators blew my questions off as being taught conspiracy at an early age. However, having a love for math and logical thought, I analysed what was said and concluded their life experiance wasn't the same as my Grandfathers. Grandpa was furious when the government no longer backed the dollar with Gold. I am greatful for your latest book as it validates my Grandpa and his teaching. He told me to make my money work for itself when I was in my 20's, but I wasn't financially educated enough to fulfill this wisdom. My concern for the American people now is that they are so use to creature comforts that they won't have the Right Stuff to endure this economic storm. Some of us will.
I am 45yrs old and just now have some time to study your books. My family is far from being monitarily wealthy, but we are steadfast, wealthy in Love, and have the ability to learn. I invested in cashflow for kids so my youngest daughter, who is 11yrs old and sharp as a tac, and I can learn how money works together. I have spent years raising my girls and struggling financially, which often involved taking on odd jobs for cash to buy good food. By the Grace Of God we will learn and prosper. Once again, Thank You!
It is a relatively new concept to me. Last year I read Michael Maloney's Investing in Gold & Silver, this helped me understand the federal reserve, then I recently read "Creature from Jekyll Island" which really explained the Fed very well, as well as other central banks in other countries.
We need to abolish the Federal Reserve and all of the Federal reserve acts and return to sound money policy. I think China will need to take the lead on this as the US dollar becomes totally worthless.
Not to me, but I am sure it will be to most people. The Creature from Jekyll Island in a very good book describing in-depth what you are saying. I would mention this book as further reading.
This information is not new to me, but most Americans do not know it. I am so happy and greateful that you are revealing the TRUTH because you are very popular and have access to the masses. I think people will be outraged upon learning the truth. The FEDERAL RESERVE is a private club of the ultra rich and they are controlling the rest of us.
The concept was new until I saw the free online movie www.zeitgeistmovie.com .
They very well explained how the Federal Reserve Ssytem operates, especially in the second released movie (called 'Addendum').
An additional interesting question to answer may be, 'The working of worldwide central banks and their ties', in order to give an holistic picture..
Moreover, you may also want to add the Rating Agencies' role and ratings along the timeline of events..
Maybe a seperate chapter or some kind of appendix could cover this?
Sheesh ... another illusion that we communally maintain with our happy beliefs and differing levels of awareness. Sometimes our society feels like a house of cards which our collective beliefs hold together ... mostly ... and which occasionally comes crashing down around us.
There are so many total LIES in our modern western society (a few examples):
> the currently discussed example of the Federal Reserve protecting us all
> milk builds calcium in your bones (drink more my boy!)
> meat protein is the strength food of all good boys and girls
> modern medicine is based on the study of DISEASE (rather than on the study of HEALTH)
What's the common theme here?
There are profits to be made by keeping these lies alive. There are powerful forces brought to bear on keeping the lies alive. Those who challenge the lies will have the system bear down on them with all its might.
Right in our homeland is the Federal Reserve bank run by Ben Bernanke. Ron Paul has always been against this money machine. Ron Paul has opened my eyes, and many of my friends in Ron Paul meetup groups to the evils of the Federal Reserve and what its true purpose is, making the rich richer.
You are right on Robert! Thank you so much for this information.
I have known this for over 25 years. I am an avid researcher and have uncovered a lot of interesting things that most people don't know and probably never will. You have to go digging and educate yourself. You can't depend on getting the truth from those in power. It is not in their best interest. Like you have said before Robert, the government wants to turn out soldiers and employees. Not people who think for themselves and may someday challenge the system.
Being in the financial services industry, I am somewhat familiar with how the Fed works. I have never looked at the overall relationship the Federal Reserve has with the US Government and the wealthy. It makes sense that the wealthy have a lot to gain by controlling the economic direction of the country.
If the money system is manipulated by the government and the wealthy, does the middle class have a chance at ever recovering?
Fortunately, I have had the opportunity to associate with some educated people that have informed me that the Federal Reserve is not a federal institution, not a bank and has no reserves.
I think the American people are being intentionally misled, but the scariest part is the Reserves ability to print money at its discretion. Inflation... Inflation... Inflation!
People need to invest in their financial educations so they won't become victims!
I've just recently started learning about the Federal Reserve and what it actually is - and that's only due to a Notes & Mortgages class I'm taking. I'm ashamed to say that if not for that class I would be completely ignorant of all the Fed is and does. It's still quite perplexing to me what the Fed is for and why it was created. I think it's a massive ball of string that will take me a while to untangle, even then I won't have the heart of it all.
The only way I can see to solve this mess is to socialize the whole economic system. So people can get rellieve and redistribute capital in fairness. Doesn't the economics run based on people hard work instead of the few greedy speculators super rich.
Give me a break, use common sense.
People shouldn't be treated as fools. In the end it will bite those that abused the system. A system that should work for the people and not to fool the people. And that is clear in the Constitution of the United States.
When I first heard about the Federal Reserve Act about 20 years ago, I started researching the validity of it because I did not want to believe it. When it was obvious to me that it did happen I was very angry. I felt betrayed by our government. It is amazing to me how many people continue to bury their head in the sand and not look at this atrocity. I believe that if enough people knew we would have a peaceful revolution where we all said,"NO, we will not take this anymore and demand changes be made and put the power of printing money back into the hands of the people via congress like it should be. This was a very evil act in my opinion and I am still amazed that it actually happened even after all these years of knowing it did. What can we do? I would love to know. I would be the first to do it. Imagine, literally creating money out of air and then charging us interest on it!!
I dont claim to know enough to provide "the" solution, but what makes sense to me is to go back to the gold standard, eliminate the fed and let the big bussiness who made mistakes go out of business, that is they way the system should work. If you make mistakes, and continue to make them again and again, eventually you will be out of business.
Lets put the slow learners out of business and restart with a plan that will work, realizing that for a period of time there will be challenges.
Lets get people together who have the knowledge and the experience to run a new program. Lets find some chef's who have actually cooked some good food and put them in the kitchen.
I think, the current group of chef's in the kitchen need to be force fed their own cooking and see how poor it tastes.
Accountability needs to be reinstilled into the system, no more gift, favors or free rides.
In 1798, Jefferson said in regret: “I wish we could pass one more constitutional amendment, to take away to power of the federal government to borrow money.”
The Federal Reserve is a joke. This is the same thing they did with the First Bank of the United State in 1791. When Jefferson came into office it was finally voted out on March 3rd 1811. Now Nathan Rothschild was pissed! He even threatened a war saying “give the renewal (of First Bank of US), or the US will be faced with a devastating war.” And sure enough the war of 1812 was started. The idea is to drown the USA with war debt because wars are so expensive. The USA’s debt went from 45 million to 127 million and after 3 years of fighting the war came to an end and the 2nd Bank of the United States was born.
“We must break the control of the banks over our people, or this control will break us (our country).” - James Madison in a letter to the next president Monroe.
Now remember the First bank was 80% privately owned and 20% government owned and it’s the same with the Second bank. 1828 came around and Andrew Jackson was elected president. Here is a quote of his, “if the Constitution gave Congress the right to issue money, then it is meant for the Congress alone, not for the Congress to give the power to a private person of company.”
Jackson wanted to get rid of this bank as well but now it was re election time. The banks put up a large sum something like 3 million dollars for Henry Clay to run against Jackson but Jackson still won and by far with his campaign slogan,” Say yes to Jackson, not the banks.” Which by the way Ron Paul should have used. Now the banks charter was voted to continue on but Jackson wanted to veto the bill. But the bank had a chairman named Jason Biddle who said “if Jackson veto the charter, I will veto him.” I think he also said something like if they didn’t keep the bank he would cause a depression. Of course Jackson vetoed it and eventually paid all the debts down to $0 I think around 1835.
Remember he was almost the first president to be assassinated because he killed the bank but both guns misfired. On his tomb it says “I killed the bank.”
This all leads back to the Rothschild’s mostly but also the Morgan’s (J.P.), and Vanderbilt’s. Funny thing is, one of the worlds greatest real estate investors was on the Titanic. Just so happens a lot of wealthy people who did not want the federal reserve to be approved were on that ship. J.P. Morgan didn’t show up even though it was HIS SHIP and he promised to go. Funny a memo even got to a priest on the ship last name Browne who took some of the only photos on the ship and got off on the last stop and the memo said, “ GET OFF THAT SHIP!” This is on the guys web page! After it sunk a year later the Federal Reserve act was passed and you pay all your taxes by April 14th. Oh did I mention that was the day the Titanic sank? Pay your taxes in celebration of the sinking of the Titanic.
This is against the Constitution and there is no way to stop them. It even says in the bible at end times in Revelation chapter 18 talks about how the Merchants would rule the world but eventually weep like little girls because no one buys their products, and ultimately go to hell. Here are a few other quotes.
“I have two great enemies, the Southern Army in front of me & the financial institutions at the rear, the latter is my greatest foe." Abe Lincoln
“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.” - Thomas Jefferson
“I believe that banking institutions are more dangerous to our liberties than standing armies. ” - Thomas Jefferson
At this point more explanation needed. Readers may want to know how Federal Reserve System controls money supply. More description of its mechanism and examples might help to understand readers.
The Federal Reserve System as described is not an entirely new concept for me but, in all honesty, it is a relatively new concept. I first learned more about the Federal Reserve System from "The Crash Course" by Chris Martenson (www.chrismartenson.com). My thoughts on the Federal Reserve System, of course without having done any real research on the subject, is that it is one of the many attempts of the government to build "release valves" into the system or equip the government with more tools to control the economy.
Unfortunately, actions often have unintended consequences and, it appears, that it results in the concentration of power that is so potent that it is dangerous. I think that it is ethically wrong to have this much power centralized because it will (and has) inevidably corrupt(ed).
The biggest conspiracy in the world is not the dictatorship of the financial world. Anyone can obtain financial control for themselves without worrying about the Federal Reserve System. The biggest conspiracy on earth is the institutionalism of stupidity, period. It doesn't take a rocket scientist or monetary policymaker to see that! Stop blaming money or the illusioniory system of money (FED) for your problems, period.
The fact that the Federal Reserve is not a federal agency has been pointed out in many of the newsletters that I read and the book (The Web of Debt) that I am currently reading.
Have you noticed that all of the world's central banks are using the same tactics? Ever wonder why? The banking cartel that runs the Federal Reserve also controls the rest of the world's central banks. They are known as the IMF (International Money Fund).
It is truly scary that just a few men have so much control over all of the world governments. They instigate wars and then fund both sides. They create both bubbles and busts.
Ron Paul is one of the rare men in govenment willing to speak out on what is really happening. Unfortunately, we live in an entitlement society. People are afraid that if we correct the system and make it work as it should, they will lose the benefits that they currently receive.
Who would want to restructure the system when the people at the top: Investment Bankers, FED, the government, lawmakers making so much money out of it.
Mansion in Palm Spring, exotic cars, real estate. I mean especially for Madoff, why we fail to detect the Ponzi Scheme ?
The education system, the media, are all controlled by the same cronies who are in their inner circle.
While we are on the subject, I saw a documentary not too long about people winning in federal court cases when they have not paid taxes (even ex IRS AGENTS) because it's not constitutional defined that we have to pay federal taxes on our labor. http://www.worldnetdaily.com/news/article.asp?ARTICLE_ID=56677
I have known about this or a few years. The crazy thing is when I talked to people about it (even close friends and family) they DO NOT believe me... they think it cannot be true... even when I go online and show them articles still many refuse to believe it, it's almost as if they feel that the system cannot be that badly flawed. It's insane!
Personally, I feel it's a scary situation, I know some friends who are buying gold and silver and my question is that if all comes crashing down, will that REALLY be a safe haven? It's hard to know, I wish I could tell the future.
I have and had been a supported of Ron PAUL. Many people held a lot of hope for the change he could really usher in... but it seems there is too much corruption at the top for someone like him to get in, regardless of who the people are for.
However, I am THRILLED that you are writing about these issues becuase I am sure that your book will reach into the minds and hearts of all your readers and shed light in the dark. What a blessing! THANK YOU!!!!!!!!!!!
We hear the media speak of "The Fed" as if it is some mystical Behemoth. When in reality, it is not what the general public thinks that it is. I had no clue that this was not a government or bank institution. It really worries me that this entity has almost limitless power with a lack of true oversight. The question becomes, how did they rise to such a prominent position?
The Federal Reserve System is a new concept to me. Initially when I saw it on US currency, I thought it was some form of control institution.
I am shocked by its description and does not appear to save any public good,.
President Kennedy attempted to reverse the federal reserve system, however he failed to follow correct commercial procedure to neutralize the (appearance of) pre-existing contracts. JFK then ordered the armed forces to stand by to impair the obligations of those pre-existing contracts, while ordering the Treasury to print United States Notes for circulation in leiu of Federal Reserve Notes.
The use of armed force to impair the obligations of contracts is directly contrary to the protections recognized at Article I, Section 10, of the Constitution protecting contracts from impairment, and effectively became an armed act overthrowing constitutional government AKA: TREASON. The penalty for treason is death. JFK was lawfully executed for Treason.
For any President to establish the chnages necessary for real economic recovery, the proper commercial PROCEDURE must first occur, establishing that the Federal Reserve System (NOTE the Seal on FRNs has changed, it is no longer the 13 Federal Reserve Banks, it is the "Federal Reserve System") has breached its contractual duty to provide for proper economics, and as such has forfeited its contract. THEN, AND ONLY THEN, CAN ANY REAL CHANGE TAKE PLACE!
Subject: Federal Express...oops, I meant Federal Reserve
Last year I saw a documentary titled "America: Freedom to Fascism" by Aaron Russo. Eye opener. Followed up with a little research that lead me to "The Money Masters". With so much evidence out there and insights from sources like Rich Dad, I have a better understanding as to why we are in today's mess. I am 24, living in southern California, and this is my first global recession.
The Federal Reserve is the ultimate scam.
If you have ever been scammed before, then I think you know exactly what my thoughts are.
The FED - the tip of the Iceberg of the real issues at hand...
The Fed is just the tip of our problems at hand, Globalization and a One World Government System is the REAL issue (9/11 revealed that), but that's not what's being asked here. Robert, to answer your first question.
"Is the Federal Reserve System as described a new concept for you?"
Yes, it IS new to me; about 4 months new. You see, ever since I listened to Mike Maloney's audiobook on "Guide to Investing in Gold & Silver," I went on to viewing his video collection on his website (by the way Thank you Mike for helping me in my personal education on this VERY IMPORTANT TOPIC). Since that time I have viewed many other documentaries and have spent good chunk of time reviewing what is and has happened as a result of the Fed and it's inception in 1913. Which goes into your second question;
"What are your thoughts on the Fed not being a "federal institution, not a bank, and . . . having no reserves"?"
I say this to my shame that I never really took a liking to history only until recently as I now know how trends (or cycles) of that history affect our future. Like the old saying goes: In order to understand the future you need to study the past.
I recently attended a group forum called "Fiscal Wake-Up Tour" put together by The Concord Coalition 7-8 weeks ago at Rice University (Houston, TX) to view a nationwide toured documentary called: I.O.U.S.A. (a film that boldly examines the rapidly growing national debt and it's consequences for the United States and its citizens). Well after viewing that and seeing that we're actually $54 Trillion in debt and not $10 Trillion I was deeply moved, but not surprised. Since the release of this documentary the "true" national debt is now $56 Trillion. This furthered my interest in finding out more; since I wanted to re-attend a followup session with the man himself who helped put this documentary together - David Walker (former Comptroller General of the United States and head of the GAO - Government Accountability Office). He was about as high up as you could go to find out the skinny on what's really going on with our current monetary issues.
Well, there was a follow up toured meeting (01-29-09) and we met with David Walker and his comity (The Concord Coalition). I wanted to basically ask the same question that you are asking of us, Robert. You see, toward the end of IOUSA documentary one of his solutions (as they were rolling the credits) was - "save money" (and they had a picture of a pink piggy bank that represented "saving money"). Here was my question to David Walker:
Ladislao M.:
"Since I did not hear this mentioned in the documentary that we viewed the last time we were here I want to ask, is the Federal Reserve government run or is a privately run corp and/or business?"
David W.:
"It's quasi government. It's off the books. There are aspects of what it does that's very important, there are aspects of what it does that are arguably unconstitutional, but nobody's going to challenge it..."
Ladislao M.:
"Well you are and so should we."
David W.:
"Well, I'm talking about nobody's going to challenge the Constitutionality of it. But umm..."
Ladislao M.:
"And why not, that's my question, why not ?!?"
David W.:
"Well, let's put it this way, I think they are very powerful. There needs to be more transparency, there needs to be more accountability, but at the same point and time they've done some things recently that frankly, huh, have probably help to stem a much bigger problem. But they've done it without people understanding what they did and what the potential consequences are vis-à-vis stoking inflation down the line, and other issues..."
David talks a bit more on the subject as well as the rest of his comity. If you want to view this full Robert, please go to:
I am still troubled at this fiasco that the Fed has created and that I'm a part of, but I'm NOT sitting down on this issue and plan to help make others aware of this horrific system that will definitely take a toll on the poor and middle class here shortly. We have some tough long years ahead of us and this situation is just the beginning.
I would say it is a new concept to me, even though I have been listening to Alan Greenspan and Ben Bernanke. I always thought of the Federal Reserve Bank as a group of people who are experts that gave financial guidance to the public. I would need to learn more about the system to get a better idea of what it is and how it effects our money and economy.
I feel that there should be no safety net for the irresponsible behavior of the world. If behavior is in it's right place then so shall the rest of the world be in it's right place, abundance and financial freedom. The feds are not for the people.
It will be dishartening to many Americans to realise that the Fed has led them into financial bondage.More and more the truth behind the Federal Reserve is being revealed, but the majority are blissfully unaware of who controls their destiny.
As long as there are folks like Robert exposing this scam and promoting real financial education , there is hope.
Robert I never truly understood the Feds purpose until reading your description of what they are and what they do. Honestly after the the first $350 billion of the tarp money was spent, there was no increase in lending, I felt there was something fishy with this whole bailout thing. You have opened my eyes to something I knew deep down was wrong but now it all makes sense.
After reading this thread, I have really began to glimpse at how far gone we really are. I think what your message is, Robert, that our civilization is going to collapse because of the Federal Reserve and our financial irresponsibility. I really think that 2012 has a lot to do with this.
Thanks to one of Robert's team members, Mr. Maloney, we are no longer in the dark about the Federal Reserve -- what it is, who it is, and how they operate with complete lack of governance. Our financial system is a joke; they can spout off as much as they want to about our best interests... know that they are looking out for Number One ONLY!!
From my opinion, FRS should not using the fund to help bailout those independant organization. It should use the fund contribute back to the society, like building more school to provide free education to the society, building more hospital. As long giving back the benefit to the society. This should be why citizen pay tax for.This is just my personal opinion.
What is the connection of the Federal Reserve to the World Bank and the central banks of other countries? How will this affect the people? Especially since we are now living in a more connected world.
I'm not from the US so I'm not really sure about the way the Federal Reserve works, but from what is written here does that mean most of the people are left to fend for themselves?
Isn't it true that the people there not helping are the ones they need to help, since if the poor get poorer there won't be enough people paying the taxes which means the government will steadily run out of money.
Dear Robert,
I believe that the Fed is just code for "The Rich".
I almost finish the book "How to Inest in Gold and Silver" today.
I started reading it yesterday, when I got home from work (I read a lot at work since my job is relatively easy and the lawyer I work for doesn't care for my financial well-being, I got to care for myself), I was so bombed out by the information, charts, data, historical events that my head really hurt.
It is so true that the power the Fed has in beyond government's control. It is not owned by US government but a individual entity. A true "clon" of the rich and powerful is alive and kicking everybody's a** by printing more and more money that we will have to pay for.
The Fed is a Monster. The only time I felt that something so evil and had no heart was seeing the movie "Matrix". The world was control by the machine and people are the daisy cows for energy and the ilusionary world to come "alive" while we are not awake.
I have to say that Robert, you are better than religion and/or cult. As I see it, you are challenging me to think for myself and I think, Jesus is dead, he is not saing us, Obama can't and won't save us, I will save myself. Today, now.
Reading about the Fed in this book did not reveal any new information to me, as I have done some study on the subject in the past. I happen to be in the financial services industry and have regular dealings with the Fed. I am always interested to see the reactions of people in this industry that don't realize the Fed is not a federal institution, I have had many look at me as if I was a conspiracy theorist. Obviously, the name itself was devised to obfuscate the real nature of the company--one that creates "money" out of thin air, then "loans" that "money" to the US via Treasury bonds and distributes it throughout the country through the various Fed bank branches. It's a good gig if one can get it.
The only (very slight) manner that the US government gets "back at" the fed and gets taxpayer money back is by forcing the Fed to purchase minted coin at face value, most of which costs a fraction of the value to create. The Fed is also responsible for distributing coin through their branches so there is a cost incurred for this as well for transportation and storage.
What we are experiencing now is exactly why our Founding Fathers stated quite clearly in the Constitution that the US was to mint coin (only) of gold and silver, as only by doing so could we avoid the trap that we have fallen into. By keeping the majority of people poorly educated and ignorant, the true power brokers essentially force everyone into indentured servitude. Through taxes and inflation at least 50% of most people's earnings are confiscated, with the profits going to those in power.
I learned about the Federal Reserve System through your books. Just thinking about the Feds being able to print money and then the banks charging me a fee when I bounce a check just gets me fired up! I am sure there has to be a way that the people can get rid of the federal reserve system if we go back to the constitution and see what it says. Of course we would need some good people in the government and educated people so they can make the decisions. I don't know if that would work, but I'm all for giving it a shot.
This isn't a new concept for me, but when it was, it took a LOT of time and research for me to understand. This explanation seems a bit too simplistic and fast for someone who's hearing it for the first time to really absorb. As I read threw the rest of the chapter, the idea's repeptition helps, but I think a little more explanation, or at least a list of resources to learn more about it would be welcome.
The wikipedia article on the Federal Reserve system goes on for over 40 pages. It is a bit simplistic that you try to summarize this behemoth in a couple of sentences. This needs better explanation as to what it is rather than what it is not. Its core mission, when formed, was to stop bank runs and financial panics. It has learned how to do the former, but as we've seen, not very good at the latter.
So, the Fed Reserve is not a department of the government? Just some kind of company with rich people in charge who have friends in the government? So the bailout was these people giving money to friends without guidelines about how to use the money and put it back into their struggling business?
Obviously I haven't really thought much about the Fed Reserve before or what it really is. This is all new to me.
I have been learning about the Federal Reserve system and fractional reserve banking in a Wealth Intellegence Academy class that I am currently enrolled in.
Prior to that, I never even considered that it was not a federal institution, but now that I know better I feel like my eyes have been opened to reality. I have been trying to tell friends about this but most people think it's just a conspiracy theory.
Recently i watched a video called "Money as Debt" which realy helped explain the basics of fractional reserve banking - http://video.google.com/videoplay?docid=-9050474362583451279
When considering the political background and banking ties of many recent Obama appointments, I feel the only way the appointees will facilitate change is if they can see and learn from their mistakes. If Geithner is any example of their attitudes, I’m guessing they have not been humbled by their mistakes and do not intend to implement lessons they’ve learned. They probably don’t think they played any consequential part in events leading to this crisis. Therefore, I am not hopeful for change.
In the book titled Mastery, the author, George Leonard, writes about homeostasis and its effects on us as individuals and a society -- homeostasis being a condition of equilibrium, a resistance to change. He writes, “Although we might think that our culture is mad for the new, the predominant function…is the survival of things as they are.” (p. 110) It kind of explains why the things Napoleon Hill writes about in the book Think and Grow Rich are still entirely applicable more than 70 years later. It’s amazing how much we as people and as a culture have not changed. This isn’t to say we can’t change, it’s only to say that homeostasis is a force that we have to recognize, manage, and overcome to implement true, long-term or permanent change.
In the definition from www.websters-online-dictionary.org, about homeostasis there is written, “A frequent paradox for those responsible for the maintenance and evolution of a complex system (be it a body, an ecosystem, a state, or a planet) is how can a stable organization whose goal is to maintain itself and endure, be able to change and evolve?” This is the President's, the appointees', and the government’s challenge.
First of all. Thank you for putting this together. Great timing and based on your table of contents so far, great direction.
A year ago I had no concept of what the Federal Reserve actually was. Over the past year I have studied the Federal Reserve system from the academic perspective of the Austrian School of Economics, and Ludwig Von Mises.
Had I not been studying this already I would have remained as I was before, shrugging off any "conspiracy" and remaining in the dark... like everyone else I know.
Robert,
Thank you for writing about this subject. My Grandpa lived with our family back in the 70's. He had my mother type up, and put together his thoughts and life experience, regarding our government and his concerns about the country and the American People. (I was 12 years old)
I admit it is not well written, but it covers a lot aspects that you are bringing to the forefront in you current book. The following is his introductory note:
"This little book was inspired by sixty years of frustration from watching the American people being led to their econimcal ruin by the International Bankers and The Money Trust System.
The very indifference of people, has made it possible for the bankers to carry on a system of pyramiding that surpasses anything ever tried by anyone.
My purpose in publishing these rhymes is to put in simple language facts they can understand and I hope enjoy reading.
R.K. Hahn"
Published in 1975.
I, myself, have always paid attention to the old stories and listened to their content. I also watched to make sure people walked their talk. Grandpa's concerns about the education system was just that. Government Run Programs, program your children to think the way the Government wants you to think. (My grandma, his wife, was a school teacher). Grandpa was VERY aware of the Federal Reserve System and the fact that he considered it Unconstitutional. There is a misfortune in the fact that I was so young, researching information back then was not as accessable as it is today. Most educators blew my questions off as being taught conspiracy at an early age. However, having a love for math and logical thought, I analysed what was said and concluded their life experiance wasn't the same as my Grandfathers. Grandpa was furious when the government no longer backed the dollar with Gold. I am greatful for your latest book as it validates my Grandpa and his teaching. He told me to make my money work for itself when I was in my 20's, but I wasn't financially educated enough to fulfill this wisdom. My concern for the American people now is that they are so use to creature comforts that they won't have the Right Stuff to endure this economic storm. Some of us will.
I am 45yrs old and just now have some time to study your books. My family is far from being monitarily wealthy, but we are steadfast, wealthy in Love, and have the ability to learn. I invested in cashflow for kids so my youngest daughter, who is 11yrs old and sharp as a tac, and I can learn how money works together. I have spent years raising my girls and struggling financially, which often involved taking on odd jobs for cash to buy good food. By the Grace Of God we will learn and prosper. Once again, Thank You!
It is a relatively new concept to me. Last year I read Michael Maloney's Investing in Gold & Silver, this helped me understand the federal reserve, then I recently read "Creature from Jekyll Island" which really explained the Fed very well, as well as other central banks in other countries.
We need to abolish the Federal Reserve and all of the Federal reserve acts and return to sound money policy. I think China will need to take the lead on this as the US dollar becomes totally worthless.
Not to me, but I am sure it will be to most people. The Creature from Jekyll Island in a very good book describing in-depth what you are saying. I would mention this book as further reading.
This information is not new to me, but most Americans do not know it. I am so happy and greateful that you are revealing the TRUTH because you are very popular and have access to the masses. I think people will be outraged upon learning the truth. The FEDERAL RESERVE is a private club of the ultra rich and they are controlling the rest of us.
I have previously been told that it is illegal to be told who the shareholders of the resevre bank are! is this true?
Who are the shareholders? the 12 richest private banks?
How much do they charge for providing money?
what interest rate do they charge?
how much profit have they made over the last 10 - 50 years?
what would it take to disband the organisation?
The concept was new until I saw the free online movie www.zeitgeistmovie.com .
They very well explained how the Federal Reserve Ssytem operates, especially in the second released movie (called 'Addendum').
An additional interesting question to answer may be, 'The working of worldwide central banks and their ties', in order to give an holistic picture..
Moreover, you may also want to add the Rating Agencies' role and ratings along the timeline of events..
Maybe a seperate chapter or some kind of appendix could cover this?
Sheesh ... another illusion that we communally maintain with our happy beliefs and differing levels of awareness. Sometimes our society feels like a house of cards which our collective beliefs hold together ... mostly ... and which occasionally comes crashing down around us.
There are so many total LIES in our modern western society (a few examples):
> the currently discussed example of the Federal Reserve protecting us all
> milk builds calcium in your bones (drink more my boy!)
> meat protein is the strength food of all good boys and girls
> modern medicine is based on the study of DISEASE (rather than on the study of HEALTH)
What's the common theme here?
There are profits to be made by keeping these lies alive. There are powerful forces brought to bear on keeping the lies alive. Those who challenge the lies will have the system bear down on them with all its might.
Right in our homeland is the Federal Reserve bank run by Ben Bernanke. Ron Paul has always been against this money machine. Ron Paul has opened my eyes, and many of my friends in Ron Paul meetup groups to the evils of the Federal Reserve and what its true purpose is, making the rich richer.
You are right on Robert! Thank you so much for this information.
I have known this for over 25 years. I am an avid researcher and have uncovered a lot of interesting things that most people don't know and probably never will. You have to go digging and educate yourself. You can't depend on getting the truth from those in power. It is not in their best interest. Like you have said before Robert, the government wants to turn out soldiers and employees. Not people who think for themselves and may someday challenge the system.
Being in the financial services industry, I am somewhat familiar with how the Fed works. I have never looked at the overall relationship the Federal Reserve has with the US Government and the wealthy. It makes sense that the wealthy have a lot to gain by controlling the economic direction of the country.
If the money system is manipulated by the government and the wealthy, does the middle class have a chance at ever recovering?
Fortunately, I have had the opportunity to associate with some educated people that have informed me that the Federal Reserve is not a federal institution, not a bank and has no reserves.
I think the American people are being intentionally misled, but the scariest part is the Reserves ability to print money at its discretion. Inflation... Inflation... Inflation!
People need to invest in their financial educations so they won't become victims!
The Federal Reserve being a cartel to benefit the rich is a new concept for me. I've never thought about it before, but it does make sense.
I've just recently started learning about the Federal Reserve and what it actually is - and that's only due to a Notes & Mortgages class I'm taking. I'm ashamed to say that if not for that class I would be completely ignorant of all the Fed is and does. It's still quite perplexing to me what the Fed is for and why it was created. I think it's a massive ball of string that will take me a while to untangle, even then I won't have the heart of it all.
Sounds like the Reserve Bank in Australia.
The only way I can see to solve this mess is to socialize the whole economic system. So people can get rellieve and redistribute capital in fairness. Doesn't the economics run based on people hard work instead of the few greedy speculators super rich.
Give me a break, use common sense.
People shouldn't be treated as fools. In the end it will bite those that abused the system. A system that should work for the people and not to fool the people. And that is clear in the Constitution of the United States.
So help us God.
When I first heard about the Federal Reserve Act about 20 years ago, I started researching the validity of it because I did not want to believe it. When it was obvious to me that it did happen I was very angry. I felt betrayed by our government. It is amazing to me how many people continue to bury their head in the sand and not look at this atrocity. I believe that if enough people knew we would have a peaceful revolution where we all said,"NO, we will not take this anymore and demand changes be made and put the power of printing money back into the hands of the people via congress like it should be. This was a very evil act in my opinion and I am still amazed that it actually happened even after all these years of knowing it did. What can we do? I would love to know. I would be the first to do it. Imagine, literally creating money out of air and then charging us interest on it!!
I dont claim to know enough to provide "the" solution, but what makes sense to me is to go back to the gold standard, eliminate the fed and let the big bussiness who made mistakes go out of business, that is they way the system should work. If you make mistakes, and continue to make them again and again, eventually you will be out of business.
Lets put the slow learners out of business and restart with a plan that will work, realizing that for a period of time there will be challenges.
Lets get people together who have the knowledge and the experience to run a new program. Lets find some chef's who have actually cooked some good food and put them in the kitchen.
I think, the current group of chef's in the kitchen need to be force fed their own cooking and see how poor it tastes.
Accountability needs to be reinstilled into the system, no more gift, favors or free rides.
In 1798, Jefferson said in regret: “I wish we could pass one more constitutional amendment, to take away to power of the federal government to borrow money.”
The Federal Reserve is a joke. This is the same thing they did with the First Bank of the United State in 1791. When Jefferson came into office it was finally voted out on March 3rd 1811. Now Nathan Rothschild was pissed! He even threatened a war saying “give the renewal (of First Bank of US), or the US will be faced with a devastating war.” And sure enough the war of 1812 was started. The idea is to drown the USA with war debt because wars are so expensive. The USA’s debt went from 45 million to 127 million and after 3 years of fighting the war came to an end and the 2nd Bank of the United States was born.
“We must break the control of the banks over our people, or this control will break us (our country).” - James Madison in a letter to the next president Monroe.
Now remember the First bank was 80% privately owned and 20% government owned and it’s the same with the Second bank. 1828 came around and Andrew Jackson was elected president. Here is a quote of his, “if the Constitution gave Congress the right to issue money, then it is meant for the Congress alone, not for the Congress to give the power to a private person of company.”
Jackson wanted to get rid of this bank as well but now it was re election time. The banks put up a large sum something like 3 million dollars for Henry Clay to run against Jackson but Jackson still won and by far with his campaign slogan,” Say yes to Jackson, not the banks.” Which by the way Ron Paul should have used. Now the banks charter was voted to continue on but Jackson wanted to veto the bill. But the bank had a chairman named Jason Biddle who said “if Jackson veto the charter, I will veto him.” I think he also said something like if they didn’t keep the bank he would cause a depression. Of course Jackson vetoed it and eventually paid all the debts down to $0 I think around 1835.
Remember he was almost the first president to be assassinated because he killed the bank but both guns misfired. On his tomb it says “I killed the bank.”
This all leads back to the Rothschild’s mostly but also the Morgan’s (J.P.), and Vanderbilt’s. Funny thing is, one of the worlds greatest real estate investors was on the Titanic. Just so happens a lot of wealthy people who did not want the federal reserve to be approved were on that ship. J.P. Morgan didn’t show up even though it was HIS SHIP and he promised to go. Funny a memo even got to a priest on the ship last name Browne who took some of the only photos on the ship and got off on the last stop and the memo said, “ GET OFF THAT SHIP!” This is on the guys web page! After it sunk a year later the Federal Reserve act was passed and you pay all your taxes by April 14th. Oh did I mention that was the day the Titanic sank? Pay your taxes in celebration of the sinking of the Titanic.
This is against the Constitution and there is no way to stop them. It even says in the bible at end times in Revelation chapter 18 talks about how the Merchants would rule the world but eventually weep like little girls because no one buys their products, and ultimately go to hell. Here are a few other quotes.
“I have two great enemies, the Southern Army in front of me & the financial institutions at the rear, the latter is my greatest foe." Abe Lincoln
“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.” - Thomas Jefferson
“I believe that banking institutions are more dangerous to our liberties than standing armies. ” - Thomas Jefferson
At this point more explanation needed. Readers may want to know how Federal Reserve System controls money supply. More description of its mechanism and examples might help to understand readers.
The Federal Reserve System as described is not an entirely new concept for me but, in all honesty, it is a relatively new concept. I first learned more about the Federal Reserve System from "The Crash Course" by Chris Martenson (www.chrismartenson.com). My thoughts on the Federal Reserve System, of course without having done any real research on the subject, is that it is one of the many attempts of the government to build "release valves" into the system or equip the government with more tools to control the economy.
Unfortunately, actions often have unintended consequences and, it appears, that it results in the concentration of power that is so potent that it is dangerous. I think that it is ethically wrong to have this much power centralized because it will (and has) inevidably corrupt(ed).
The biggest conspiracy in the world is not the dictatorship of the financial world. Anyone can obtain financial control for themselves without worrying about the Federal Reserve System. The biggest conspiracy on earth is the institutionalism of stupidity, period. It doesn't take a rocket scientist or monetary policymaker to see that! Stop blaming money or the illusioniory system of money (FED) for your problems, period.
The fact that the Federal Reserve is not a federal agency has been pointed out in many of the newsletters that I read and the book (The Web of Debt) that I am currently reading.
Have you noticed that all of the world's central banks are using the same tactics? Ever wonder why? The banking cartel that runs the Federal Reserve also controls the rest of the world's central banks. They are known as the IMF (International Money Fund).
It is truly scary that just a few men have so much control over all of the world governments. They instigate wars and then fund both sides. They create both bubbles and busts.
Ron Paul is one of the rare men in govenment willing to speak out on what is really happening. Unfortunately, we live in an entitlement society. People are afraid that if we correct the system and make it work as it should, they will lose the benefits that they currently receive.
Who would want to restructure the system when the people at the top: Investment Bankers, FED, the government, lawmakers making so much money out of it.
Mansion in Palm Spring, exotic cars, real estate. I mean especially for Madoff, why we fail to detect the Ponzi Scheme ?
The education system, the media, are all controlled by the same cronies who are in their inner circle.
While we are on the subject, I saw a documentary not too long about people winning in federal court cases when they have not paid taxes (even ex IRS AGENTS) because it's not constitutional defined that we have to pay federal taxes on our labor.
http://www.worldnetdaily.com/news/article.asp?ARTICLE_ID=56677
I have known about this or a few years. The crazy thing is when I talked to people about it (even close friends and family) they DO NOT believe me... they think it cannot be true... even when I go online and show them articles still many refuse to believe it, it's almost as if they feel that the system cannot be that badly flawed. It's insane!
Personally, I feel it's a scary situation, I know some friends who are buying gold and silver and my question is that if all comes crashing down, will that REALLY be a safe haven? It's hard to know, I wish I could tell the future.
I have and had been a supported of Ron PAUL. Many people held a lot of hope for the change he could really usher in... but it seems there is too much corruption at the top for someone like him to get in, regardless of who the people are for.
However, I am THRILLED that you are writing about these issues becuase I am sure that your book will reach into the minds and hearts of all your readers and shed light in the dark. What a blessing! THANK YOU!!!!!!!!!!!
We hear the media speak of "The Fed" as if it is some mystical Behemoth. When in reality, it is not what the general public thinks that it is. I had no clue that this was not a government or bank institution. It really worries me that this entity has almost limitless power with a lack of true oversight. The question becomes, how did they rise to such a prominent position?
No I have heard that multiple times. I have also heard that it is illegal. Is that true? CR
The Federal Reserve System is a new concept to me. Initially when I saw it on US currency, I thought it was some form of control institution.
I am shocked by its description and does not appear to save any public good,.
President Kennedy attempted to reverse the federal reserve system, however he failed to follow correct commercial procedure to neutralize the (appearance of) pre-existing contracts. JFK then ordered the armed forces to stand by to impair the obligations of those pre-existing contracts, while ordering the Treasury to print United States Notes for circulation in leiu of Federal Reserve Notes.
The use of armed force to impair the obligations of contracts is directly contrary to the protections recognized at Article I, Section 10, of the Constitution protecting contracts from impairment, and effectively became an armed act overthrowing constitutional government AKA: TREASON. The penalty for treason is death. JFK was lawfully executed for Treason.
For any President to establish the chnages necessary for real economic recovery, the proper commercial PROCEDURE must first occur, establishing that the Federal Reserve System (NOTE the Seal on FRNs has changed, it is no longer the 13 Federal Reserve Banks, it is the "Federal Reserve System") has breached its contractual duty to provide for proper economics, and as such has forfeited its contract. THEN, AND ONLY THEN, CAN ANY REAL CHANGE TAKE PLACE!
Last year I saw a documentary titled "America: Freedom to Fascism" by Aaron Russo. Eye opener. Followed up with a little research that lead me to "The Money Masters". With so much evidence out there and insights from sources like Rich Dad, I have a better understanding as to why we are in today's mess. I am 24, living in southern California, and this is my first global recession.
The Federal Reserve is the ultimate scam.
If you have ever been scammed before, then I think you know exactly what my thoughts are.
The Fed is just the tip of our problems at hand, Globalization and a One World Government System is the REAL issue (9/11 revealed that), but that's not what's being asked here. Robert, to answer your first question.
"Is the Federal Reserve System as described a new concept for you?"
Yes, it IS new to me; about 4 months new. You see, ever since I listened to Mike Maloney's audiobook on "Guide to Investing in Gold & Silver," I went on to viewing his video collection on his website (by the way Thank you Mike for helping me in my personal education on this VERY IMPORTANT TOPIC). Since that time I have viewed many other documentaries and have spent good chunk of time reviewing what is and has happened as a result of the Fed and it's inception in 1913. Which goes into your second question;
"What are your thoughts on the Fed not being a "federal institution, not a bank, and . . . having no reserves"?"
I say this to my shame that I never really took a liking to history only until recently as I now know how trends (or cycles) of that history affect our future. Like the old saying goes: In order to understand the future you need to study the past.
I recently attended a group forum called "Fiscal Wake-Up Tour" put together by The Concord Coalition 7-8 weeks ago at Rice University (Houston, TX) to view a nationwide toured documentary called: I.O.U.S.A. (a film that boldly examines the rapidly growing national debt and it's consequences for the United States and its citizens). Well after viewing that and seeing that we're actually $54 Trillion in debt and not $10 Trillion I was deeply moved, but not surprised. Since the release of this documentary the "true" national debt is now $56 Trillion. This furthered my interest in finding out more; since I wanted to re-attend a followup session with the man himself who helped put this documentary together - David Walker (former Comptroller General of the United States and head of the GAO - Government Accountability Office). He was about as high up as you could go to find out the skinny on what's really going on with our current monetary issues.
Well, there was a follow up toured meeting (01-29-09) and we met with David Walker and his comity (The Concord Coalition). I wanted to basically ask the same question that you are asking of us, Robert. You see, toward the end of IOUSA documentary one of his solutions (as they were rolling the credits) was - "save money" (and they had a picture of a pink piggy bank that represented "saving money"). Here was my question to David Walker:
Ladislao M.:
"Since I did not hear this mentioned in the documentary that we viewed the last time we were here I want to ask, is the Federal Reserve government run or is a privately run corp and/or business?"
David W.:
"It's quasi government. It's off the books. There are aspects of what it does that's very important, there are aspects of what it does that are arguably unconstitutional, but nobody's going to challenge it..."
Ladislao M.:
"Well you are and so should we."
David W.:
"Well, I'm talking about nobody's going to challenge the Constitutionality of it. But umm..."
Ladislao M.:
"And why not, that's my question, why not ?!?"
David W.:
"Well, let's put it this way, I think they are very powerful. There needs to be more transparency, there needs to be more accountability, but at the same point and time they've done some things recently that frankly, huh, have probably help to stem a much bigger problem. But they've done it without people understanding what they did and what the potential consequences are vis-à-vis stoking inflation down the line, and other issues..."
David talks a bit more on the subject as well as the rest of his comity. If you want to view this full Robert, please go to:
http://webcast.rice.edu/webcast.php?action=details&event=1702
I am still troubled at this fiasco that the Fed has created and that I'm a part of, but I'm NOT sitting down on this issue and plan to help make others aware of this horrific system that will definitely take a toll on the poor and middle class here shortly. We have some tough long years ahead of us and this situation is just the beginning.
I would say it is a new concept to me, even though I have been listening to Alan Greenspan and Ben Bernanke. I always thought of the Federal Reserve Bank as a group of people who are experts that gave financial guidance to the public. I would need to learn more about the system to get a better idea of what it is and how it effects our money and economy.
I feel that there should be no safety net for the irresponsible behavior of the world. If behavior is in it's right place then so shall the rest of the world be in it's right place, abundance and financial freedom. The feds are not for the people.
It will be dishartening to many Americans to realise that the Fed has led them into financial bondage.More and more the truth behind the Federal Reserve is being revealed, but the majority are blissfully unaware of who controls their destiny.
As long as there are folks like Robert exposing this scam and promoting real financial education , there is hope.
Robert I never truly understood the Feds purpose until reading your description of what they are and what they do. Honestly after the the first $350 billion of the tarp money was spent, there was no increase in lending, I felt there was something fishy with this whole bailout thing. You have opened my eyes to something I knew deep down was wrong but now it all makes sense.
After reading this thread, I have really began to glimpse at how far gone we really are. I think what your message is, Robert, that our civilization is going to collapse because of the Federal Reserve and our financial irresponsibility. I really think that 2012 has a lot to do with this.
Thanks to one of Robert's team members, Mr. Maloney, we are no longer in the dark about the Federal Reserve -- what it is, who it is, and how they operate with complete lack of governance. Our financial system is a joke; they can spout off as much as they want to about our best interests... know that they are looking out for Number One ONLY!!
From my opinion, FRS should not using the fund to help bailout those independant organization. It should use the fund contribute back to the society, like building more school to provide free education to the society, building more hospital. As long giving back the benefit to the society. This should be why citizen pay tax for.This is just my personal opinion.
What is the connection of the Federal Reserve to the World Bank and the central banks of other countries? How will this affect the people? Especially since we are now living in a more connected world.
I'm not from the US so I'm not really sure about the way the Federal Reserve works, but from what is written here does that mean most of the people are left to fend for themselves?
Isn't it true that the people there not helping are the ones they need to help, since if the poor get poorer there won't be enough people paying the taxes which means the government will steadily run out of money.
Dear Robert,
I believe that the Fed is just code for "The Rich".
I almost finish the book "How to Inest in Gold and Silver" today.
I started reading it yesterday, when I got home from work (I read a lot at work since my job is relatively easy and the lawyer I work for doesn't care for my financial well-being, I got to care for myself), I was so bombed out by the information, charts, data, historical events that my head really hurt.
It is so true that the power the Fed has in beyond government's control. It is not owned by US government but a individual entity. A true "clon" of the rich and powerful is alive and kicking everybody's a** by printing more and more money that we will have to pay for.
The Fed is a Monster. The only time I felt that something so evil and had no heart was seeing the movie "Matrix". The world was control by the machine and people are the daisy cows for energy and the ilusionary world to come "alive" while we are not awake.
I have to say that Robert, you are better than religion and/or cult. As I see it, you are challenging me to think for myself and I think, Jesus is dead, he is not saing us, Obama can't and won't save us, I will save myself. Today, now.
Annie
Reading about the Fed in this book did not reveal any new information to me, as I have done some study on the subject in the past. I happen to be in the financial services industry and have regular dealings with the Fed. I am always interested to see the reactions of people in this industry that don't realize the Fed is not a federal institution, I have had many look at me as if I was a conspiracy theorist. Obviously, the name itself was devised to obfuscate the real nature of the company--one that creates "money" out of thin air, then "loans" that "money" to the US via Treasury bonds and distributes it throughout the country through the various Fed bank branches. It's a good gig if one can get it.
The only (very slight) manner that the US government gets "back at" the fed and gets taxpayer money back is by forcing the Fed to purchase minted coin at face value, most of which costs a fraction of the value to create. The Fed is also responsible for distributing coin through their branches so there is a cost incurred for this as well for transportation and storage.
What we are experiencing now is exactly why our Founding Fathers stated quite clearly in the Constitution that the US was to mint coin (only) of gold and silver, as only by doing so could we avoid the trap that we have fallen into. By keeping the majority of people poorly educated and ignorant, the true power brokers essentially force everyone into indentured servitude. Through taxes and inflation at least 50% of most people's earnings are confiscated, with the profits going to those in power.
I learned about the Federal Reserve System through your books. Just thinking about the Feds being able to print money and then the banks charging me a fee when I bounce a check just gets me fired up! I am sure there has to be a way that the people can get rid of the federal reserve system if we go back to the constitution and see what it says. Of course we would need some good people in the government and educated people so they can make the decisions. I don't know if that would work, but I'm all for giving it a shot.
WOW, I used to work where the paper money was printed and did not even know the Federal Reserve was not Federally run. Thanks for the news.
This isn't a new concept for me, but when it was, it took a LOT of time and research for me to understand. This explanation seems a bit too simplistic and fast for someone who's hearing it for the first time to really absorb. As I read threw the rest of the chapter, the idea's repeptition helps, but I think a little more explanation, or at least a list of resources to learn more about it would be welcome.
The wikipedia article on the Federal Reserve system goes on for over 40 pages. It is a bit simplistic that you try to summarize this behemoth in a couple of sentences. This needs better explanation as to what it is rather than what it is not. Its core mission, when formed, was to stop bank runs and financial panics. It has learned how to do the former, but as we've seen, not very good at the latter.
So, the Fed Reserve is not a department of the government? Just some kind of company with rich people in charge who have friends in the government? So the bailout was these people giving money to friends without guidelines about how to use the money and put it back into their struggling business?
Obviously I haven't really thought much about the Fed Reserve before or what it really is. This is all new to me.
I have been learning about the Federal Reserve system and fractional reserve banking in a Wealth Intellegence Academy class that I am currently enrolled in.
Prior to that, I never even considered that it was not a federal institution, but now that I know better I feel like my eyes have been opened to reality. I have been trying to tell friends about this but most people think it's just a conspiracy theory.
Recently i watched a video called "Money as Debt" which realy helped explain the basics of fractional reserve banking - http://video.google.com/videoplay?docid=-9050474362583451279