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The Federal Reserve: A Certain Flow to Money

by Benjamin E. Thompkins Jr. in Organizations, November 12, 2008

Information about a private organization (Not Government) that has their hands into the economy of the U.S.

The Federal Reserve, what kind of Organization is it? What exactly do they do? How do they fit in, when it relates to how this Country is run, especially when it comes down to the flow of the Currency and the setting of Interest Rates? On every American Paper Note, on the top, you see written, “Federal Reserve Note”. (Plus strange symbolism) When we, as individuals, can understand how the money in this Country is created, and circulated, then we can better prepare ourselves and families to live within our means, especially in this day and age.

There is one thing that everyone needs to understand, and that is, “The Federal Reserve” is not an organization that is part of any Government institution. (Most people think they are a part of the Government, in some form or another) This organization is privately run by 8 families — 5 from Europe, 3 from the United States. The 8 major Stockholders are, (1) The Rothchilds of England and Germany, (2) Moses Seif of Italy, (3) Lazard Freses of France, (4) The Warburgs of Germany (5) Kuhn – Loeb of Germany, (6) Golden – Sachs of U.S. (7) Lehman Brothers of U.S. (8) Rockefellers of U.S. This small group decides the fate of hundreds of millions of people through their financial polices and decisions.

There are 12 District Banks, each with their own President, serving a term of 5 years. The District Banks have their own Branch Banks through out their particular region, totaling 25 Branches. The 12 District Banks are (D1) Boston Ma, (D2) New York NY, (D3) Philadelphia Pa, (D4) Cleveland Oh, (5) Richmond Va, (D6) Atlanta Ga, (D7) Chicago Ill, (D8) St. Louis Mo, (D9) Minneapolis Mn, (D10) Kansas City Mo, (D11) Dallas TX, (D12) San Francisco Ca.

In their beginning, the Federal Reserve was monitored by Congress; but through out the years, in a very subtle way, through Legislation, that would change. Then, for a long while, their activities were not being monitored; thus, they never produced any records accounting for their actions, they never produced any books to be audited. Yet, after years of pressure, Congress required auditing through the General Accounting Office, this was done in 1976. At this moment, the I.R.S. really doesn’t have any jurisdiction over the Federal Reserve Bank when it relates to their Monetary Activities, all monetary activities were exempted from this audit; the audit relates only to activities such as furniture, office supplies, — these types of activities. The records of their Monetary Activities are never seen, they are exempt; they also pay no Taxes.

How did the Federal Reserve come into such power, how were they able to get in such a position (being a Private Institution), having their hands on the Money Flow of the United States? After the Revolutionary War, the wealthy Bankers across Europe wanted to set up and control the Banks in the U.S; they wanted to finance the people in how commerce was to be run, they wanted to have their Hands on the Money. The Founding Fathers told them, “NO WAY”, that they would finance their own New Country, with their own Currency. So, when the United States was first established, the Congress was given control in how the flow of the money would be; all coin money and its value would be controlled by the Congress – through the Constitution that was written.

During the next 100 yrs, the European Bankers still tried to get a foot hold in the U.S. economy; they did everything they could, to establish a “Central Bank of America”. During this time period, the population as a whole understood the process of how their money came to them. (It was a new nation, so the majority of the people were involved in how things were being done – remember, this was the time period of the establishing of what the nation is today – in terms of the laws and regulations) They knew how their finances were being created, how it was controlled; they understood how Gold played a part in the American Economy; they caught on to the paper money “trick” the European Bankers were presenting to them. The European Bankers could never get established, they could never get over on the population.

In 1907 though, a Banking crisis took place in this country (In much like this time period of Mankind), a panic had begun when it related to America’s finances. Slowly, but surely, the population started to change its view on how Congress was doing things with the money. This was the opening the European Bankers needed; through the Newspapers they owned, through the Lobby Groups they funded, they started calling out for a “Full Banking Reform”. They offered their expertise in how things could be changed, so that there would be no Banking Failures, like the ones they were experiencing at the time.

By 1912, the public concern had grown greatly and the two main Presidential Candidates were both pushing their ideas about a “Nation Monetary Reform Bill”. Their ideas were nearly identical in what they were presenting to the public though; they basically were saying the same things about reform, the differences were very minor. Yet, what the public didn’t realize was that both ideas for a “Reform Plan” was written by the same person, and that both Parties were financed by this same person, a German Banker name Paul Warburg; who was financed through Kuhn, Loeb and Company – one of the oldest and wealthiest banking houses in Europe. Not only did Warburg control the two main Presidential Candidates, but he controlled the content of the “Banking Reform Bill”. By this happening, he was guaranteed a “Central Bank of America”; this is what the European Bankers had all along wanted, the establishment of a “Central Bank” in America. Through the American Public, they were being held back in doing this; but once the population started to panic, once they lost their confidence in how Congress was doing things, the European Bankers were able to step right in – having all the answers.

In 1913, the Foreign Banks central plan, entitled “The Federal Reserve Act” was signed into law by newly elected president Woodrow Wilson. This bill transferred Congress’s Constitutional duties in issuing the country’s currency, into the hands of the private corporation, “The Federal Reserve Bank of New York”. In the beginning, Congress was to monitor their activities, but subtlety through out the years, legislation would change, making them independent of Congressional Control. The organization is very secretive in how it operates; as mentioned earlier, they refuse to even be audited by the U.S. Government. (President Kennedy tried to put a stop to the Federal Reserve and how they controlled things financially; he wanted to start printing U.S. currency again, like the Founding Fathers had established for the nation in the very beginning. He wanted to put a stop to the High Interest Rates the F.R.B. was collecting from the public. We all know what happened to President Kennedy; his death put a halt to what he was planning on doing – if he had of lived and been successful, the F.R.B would of lost everything they were gaining so freely from the American public. The American Economy would of Grown from this change)

When all was said and done, the Wealth of this Country was put into the hands of the few shareholders that had their hands into the Federal Bank. (The stock of the Federal Reserve is not made available to the public, only to the Powerful Banking Families)

The Federal Reserve Bank creates our money, they make the currency. Let’s say an influx of money is needed for some situation in the Country, to get the economy moving — like the situation that exist now; they will just write out a check for what ever amount. (Right now, in our current situation, $700 Billion is being created) By doing this, money is being created out of thin air. They are not required to actually have the amount that is being written out. With the check, they (F.R.B) goes to the Treasury Dept, purchasing that amount in U.S. Treasury Bonds, from the major Banks and Brokerage Houses; they also invest in Hedge Funds (Hedge Funds are a Wealthy man’s Mutual Funds). The Major Banks and Brokerage Houses now have that amount, ”New Dollars”, in their accounts, from the Treasury Department; with this money, they loan out to the population, to other smaller banks and businesses to stimulate the economy; interest rates are set all the way down from the F.R.B. to the local business or bank. (Each group, setting their own rates – to gain profit)

In exchange of the checks, the F.R.B. and their private Stockholders, own that particular amount worth of U.S. Treasury Bonds. When they take possession of U.S. Treasury Bonds and their other Investments, they are basically taking control of the real wealth in America. They get this by the hard work of the Citizens; all transferred into the Treasury, through our Taxes. This backs up the actual value of the Treasury’s obligation; what ever amount they write a check out for, that amount must be covered. It’s covered through the Labor and Property of the Citizens in this Country. (The same is being done in Europe) The F.R.B. also collects annual interest on the Treasury Bonds they hold. This adds to the Debt of the American Citizen, through the Treasury.

Since 1913, the value of the Dollar has fallen to 11 cents. The country’s Gold Reserve has vanished (Keep an eye on the value of Gold); our interest rates rise and fall continually; inflated money supply destroys the value of life long savings.

The F.R.B. also acquired America’s gold and silver during the time period of 1933. Frank Roosevelt issued the following proclamation: “By Executive Order of the President, issued April 5, 1933, all persons are required to deliver on or before May 1933, all gold coins, gold bullion, and gold certificates to a F.R.B. branch or agency, or even a member of the system”. Notice, he didn’t order that this was given to the Treasury Department, but to the Federal Reserve Bank. When the F.R.B. received the Gold, they just went and printed additional “Federal Reserve Notes” to pay for it.

Conclusion

More so than ever, in this Day and Age, the American public needs to know and understand how the money in this country is controlled. There are other factors that affect the money in this country and how it flows; but, the ways of the Federal Reserve and their Branch Banks, should be known. (It’s like they are on the Outside looking In) People should know how they affect the money in this country. On all U.S. Paper Notes, “Federal Reserve” is written out; which in a sense, gives the indication that they are some form of a Government Organization; they are not though, they are a Private Organization – growing in wealth through the citizens of this country. (While other financial institutions are closing down, their Branches are flourishing) Look at the present economy, and learn how the F.R.B. is playing a part in how things are getting done. They affect the Mortgage Industry, Banking, Gas, Retail, Transportation, and our own Government, just to name a few. (They can bail falling businesses out, if they wanted to; without holding back the financial growth of the nation) The Middle Class is being completely destroyed right now; the poor have nothing, the Rich are not being affected by what is happening – they still can afford to buy; the Wealthy are not being touched at all. The “Powers that Be”, are bringing this country down, and the F.R.B. is one of the tools that’s being used, to do this. (There is a push, which will combine American currency with Canadian and Mexican, creating an “Amero” – one currency for these nations; just like in Europe).

This is just some information for your thoughts, something to think about, some of just what I know about this Group. I am Still learning, I am just sharing what I think, I know. Smile. This is just the touch of the Ice Burg, when it relates to the information about this organization and how they play a part in this country’s finances; in how they operate and run things. This tells of their beginning and how they got a foothold; how they, in their own way, affect the flow of currency in this country and actually the World (Through the U.S. economy). By doing what they are doing, they are taking advantage of the people and the businesses that are trying to survive and thrive (through Interest Rates, through certain Taxes). Search for yourself, seek out the truth in these words that are written, see if what is being said is true or not. I, the writer, am still learning about this; there is so much more to this than what has been written in this article; if anything is wrong, get the corrections to me. Smile These words are meant to set a seed, so that the reader will look into this organization for themselves. The Public needs to know about the words written across our Paper Money, “Federal Reserve Note”; without this Note, we can not buy, it’s hard to provide and survive. The public needs to understand what is happening in the present time, when it relates to the economy; what is happening to America, is not some big accident. Thomas Jefferson said, “If the American People ever allow private banks to control the issue of their currency…the banks and the corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their Fathers conquered.” See what is happening to the United States in this Present Age; understand the words of Thomas Jefferson that were written so long ago – seems like those Private Banks are stepping in and doing a lot of depriving.

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User Comments

  1. Ralph Brandt

    On November 12, 2008 at 8:20 pm


    The Fed just guesses and we suffer…

  2. Barbara

    On November 14, 2008 at 11:47 pm


    It is very interesting, but remember GOD has the finally word, the World still belong to him. No matter what the FRB thinks! To GOD be the Glory!!!

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