# 10 Things That Every American Should Know About The Federal Reserve



## Murphy

10 Things That Every American Should Know About The Federal Reserve

Click the link for a deeper look.

#1 The Federal Reserve System Is A Privately Owned Banking Cartel

#2 The Federal Reserve System Is A Perpetual Debt Machine

#3 The Federal Reserve Has Destroyed More Than 96% Of The Value Of The U.S. Dollar

#4 The Federal Reserve Can Bail Out Whoever It Wants To With No Accountability

#5 The Federal Reserve Is Paying Banks Not To Lend Money

#6 The Federal Reserve Creates Artificial Economic Bubbles That Are Extremely Damaging

#7 The Federal Reserve System Is Dominated By The Big Wall Street Banks

#8 It Is Not An Accident That We Saw The Personal Income Tax And The Federal Reserve System Both Come Into Existence In 1913

#9 The Current Federal Reserve Chairman, Ben Bernanke, Has A Nightmarish Track Record Of Incompetence

#10 The Federal Reserve Has Become Way Too Powerful

Regarding #2,
Example, whenever the U.S. government wants to spend more money than it takes in (which happens constantly), it has to go ask the Federal Reserve for it. The federal government gives U.S. Treasury bonds to the Federal Reserve, and the Federal Reserve gives the U.S. government "Federal Reserve Notes" in return. Usually this is just done electronically.

So where does the Federal Reserve get the Federal Reserve Notes?

It just creates them out of thin air.

Wouldn't you like to be able to create money out of thin air?


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## SARGE7402

Perhaps it would be better that folks actually read what the FED is really all about.

Federal Reserve System - Wikipedia, the free encyclopedia

And just for the record that when posting an old list perhaps updating it might be in order. Ben's been out for almost a year and Janet took his place.


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## Murphy

SARGE7402 said:


> Perhaps it would be better that folks actually read what the FED is really all about.
> 
> Federal Reserve System - Wikipedia, the free encyclopedia
> 
> And just for the record that when posting an old list perhaps updating it might be in order. Ben's been out for almost a year and Janet took his place.


The fundamentals are the same...


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## Diver

Murphy said:


> 10 Things That Every American Should Know About The Federal Reserve
> 
> Click the link for a deeper look.
> 
> #1 The Federal Reserve System Is A Privately Owned Banking Cartel
> 
> #2 The Federal Reserve System Is A Perpetual Debt Machine
> 
> #3 The Federal Reserve Has Destroyed More Than 96% Of The Value Of The U.S. Dollar
> 
> #4 The Federal Reserve Can Bail Out Whoever It Wants To With No Accountability
> 
> #5 The Federal Reserve Is Paying Banks Not To Lend Money
> 
> #6 The Federal Reserve Creates Artificial Economic Bubbles That Are Extremely Damaging
> 
> #7 The Federal Reserve System Is Dominated By The Big Wall Street Banks
> 
> #8 It Is Not An Accident That We Saw The Personal Income Tax And The Federal Reserve System Both Come Into Existence In 1913
> 
> #9 The Current Federal Reserve Chairman, Ben Bernanke, Has A Nightmarish Track Record Of Incompetence
> 
> #10 The Federal Reserve Has Become Way Too Powerful
> 
> Regarding #2,
> Example, whenever the U.S. government wants to spend more money than it takes in (which happens constantly), it has to go ask the Federal Reserve for it. The federal government gives U.S. Treasury bonds to the Federal Reserve, and the Federal Reserve gives the U.S. government "Federal Reserve Notes" in return. Usually this is just done electronically.
> 
> So where does the Federal Reserve get the Federal Reserve Notes?
> 
> It just creates them out of thin air.
> 
> Wouldn't you like to be able to create money out of thin air?


#1. Ownership is irrelevant because the Federal Government has total control. The banks that provide capital are required to do so. They aren't doing it for investment purposes and they don't have any control.

#2. Sounds awful, but you don't really describe what a "perpetual debt machine" is.

#3. Inflation has destroyed 96% of the value of the US dollar over the course of more than 100 years. How much of that is due to the Fed, or going off the gold standard (Nixon administration decision independent of the Fed) other economic factors, etc. is debatable. Note the Fed's mandate under law (there's that pesky Federal control again) is not only price stability but also full employment. If inflation is required to achieve full employment then that is what federal law calls for.

#4. The ability to bail out whoever it wants to is debatable. The Fed is accountable to Congress. The chairman is appointed by the President.

#5. The Fed is currently conducting a very odd program with interest rates. To say it is paying banks to not lend money is to confuse what they are trying to accomplish with unintended consequences.

#6. We have experienced bubbles. Failure to control bubbles is not the same thing as causing them. You will need to back that up with more than an assertion to get it to fly.

#7. Dominated how? The big Wall Street Banks are all regulated by the Fed.

#8. So something happened in 1913. So what difference does that make now?

#9. Bernake has been out of office for a year. His track record is debatable.

#10. If the Fed is too powerful and you want something done about it, then you need to suggest what should be done instead.


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## Murphy

Diver said:


> #1. Ownership is irrelevant because the Federal Government has total control. The banks that provide capital are required to do so. They aren't doing it for investment purposes and they don't have any control.
> 
> #2. Sounds awful, but you don't really describe what a "perpetual debt machine" is.
> 
> #3. Inflation has destroyed 96% of the value of the US dollar over the course of more than 100 years. How much of that is due to the Fed, or going off the gold standard (Nixon administration decision independent of the Fed) other economic factors, etc. is debatable. Note the Fed's mandate under law (there's that pesky Federal control again) is not only price stability but also full employment. If inflation is required to achieve full employment then that is what federal law calls for.
> 
> #4. The ability to bail out whoever it wants to is debatable. The Fed is accountable to Congress. The chairman is appointed by the President.
> 
> #5. The Fed is currently conducting a very odd program with interest rates. To say it is paying banks to not lend money is to confuse what they are trying to accomplish with unintended consequences.
> 
> #6. We have experienced bubbles. Failure to control bubbles is not the same thing as causing them. You will need to back that up with more than an assertion to get it to fly.
> 
> #7. Dominated how? The big Wall Street Banks are all regulated by the Fed.
> 
> #8. So something happened in 1913. So what difference does that make now?
> 
> #9. Bernake has bee out of office for a year. His track record is debatable.
> 
> #10. If the Fed is too powerful and you want something done about it, then you need to suggest what should be done instead.


So your a fan of the Debt Machine?

Currently all we do is exchange FED money (interest attached) for real U.S. money (interest-free) dollar for dollar. We should not be required to pay interest on our own currency. According to Benjamin Franklin, this was one of the primary reasons we fought the Revolutionary War


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## Diver

Murphy said:


> So your a fan of the Debt Machine?
> 
> Currently all we do is exchange FED money (interest attached) for real U.S. money (interest-free) dollar for dollar. We should not be required to pay interest on our own currency. According to Benjamin Franklin, this was one of the primary reasons we fought the Revolutionary War


So you are complaining about the Fed but you suggest no alternative?


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## Murphy

Diver said:


> So you are complaining about the Fed but you suggest no alternative?


Well all I know is this ain't working!

You can't sit there with a straight face and tell me it is, can you?


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## Diver

Murphy said:


> Well all I know is this ain't working!
> 
> You can't sit there with a straight face and tell me it is, can you?


I don't think our economy is working properly, but I don't think that is the sole responsibility of the Fed. Not only are the deficits the direct result of Congress not balancing its budget year in and year out, but it is unclear how much control over the economy the government in total either can have, or should have, in a free society.

Unless you are an Obama supporter, if you want change the responsible position is to state what you want the change to look like.

Personally, I would keep the Fed, dump Dodd-Frank and Humphrey-Hawkins, and add a balanced budget amendment to the Constitution. Then I would follow with forcing Social Security and Medicare to be actuarially sound or phased out. I would wrap up with a return to the gold standard.

That whole program would take about 75 years. YMMV


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## Murphy

Diver said:


> I don't think our economy is working properly, but I don't think that is the sole responsibility of the Fed. Not only are the deficits the direct result of Congress not balancing its budget year in and year out, but it is unclear how much control over the economy the government in total either can have, or should have, in a free society.
> 
> Unless you are an Obama supporter, if you want change the responsible position is to state what you want the change to look like.
> 
> Personally, I would keep the Fed, dump Dodd-Frank and Humphrey-Hawkins, and add a balanced budget amendment to the Constitution. Then I would follow with forcing Social Security and Medicare to be actuarially sound or phased out. I would wrap up with a return to the gold standard.
> 
> That whole program would take about 75 years. YMMV


First, I never said I have fix to the problem nor did I offer one
I'm not sure how to fix this 18 trillion problem
Maybe stop printing money that we pay interest on would be a good place to start


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## Denton

The Fed is a system of debt. The nation was never supposed to "rent" money from a central banking system. The flaw in that is clear, and it should never have been created in the first place. Of course, the it was created at the Treason of Jekyll Island.


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## rice paddy daddy

Question to Diver - if the Fed is under complete control of the government, why can it not be audited by the government?


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## Diver

rice paddy daddy said:


> Question to Diver - if the Fed is under complete control of the government, why can it not be audited by the government?


It can be audited by the government but there are two caveats: 1) Congress needs to appropriate the funds for the audit. 2) Audits are conducted against a set of accounting standards.

No part of the federal government is on a recognizable accounting standard today.

There is also the question of who does the audit? Should it be done by the GAO? an independent auditor?

However, there are no insurmountable obstacles to performing an audit of the Fed.


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## Salt-N-Pepper

Murphy said:


> Wouldn't you like to be able to create money out of thin air?


Thank you for posting this, every time I hear people talking about our fiat thin-air money I wonder if they have ANY idea what a complete fabrication our dollars actually are...


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## Diver

Salt-N-Pepper said:


> Thank you for posting this, every time I hear people talking about our fiat thin-air money I wonder if they have ANY idea what a complete fabrication our dollars actually are...


They are merely a symbol. However, like Murphy, if you want to change, the question becomes to what?


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## Denton

"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 them will deprive the people of all property until their children wake up homeless on the continent their Fathers conquered...I believe that banking institutions are more dangerous to our liberties than standing armies... The issuing power should be taken from the banks and restored to the people, to whom it properly belongs." Thomas Jefferson

Every single time we ignore the warnings, admonishments and wisdom of the founding fathers....


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## Murphy

“It is well that the people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning.” — Henry Ford (1863-1947)


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## rice paddy daddy

Diver said:


> It can be audited by the government but there are two caveats: 1) Congress needs to appropriate the funds for the audit. 2) Audits are conducted against a set of accounting standards.
> 
> No part of the federal government is on a recognizable accounting standard today.
> 
> There is also the question of who does the audit? Should it be done by the GAO? an independent auditor?
> 
> However, there are no insurmountable obstacles to performing an audit of the Fed.


We will see as soon as the new congress is seated. I've just got that feeling.
The fed and and those bankers that control the fed are the biggest threat to the American way of life this country has ever seen.
The fed did not exist until 1913. How on earth did we get along without it if it is so indespensible to the country? How did we carve this country out of the wilderness? Pay for the Louisiana Purchase? Fight the Civil War? Settle the west?


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## Denton

Diver said:


> They are merely a symbol. However, like Murphy, if you want to change, the question becomes to what?


First, people need to look back at history, see what led to the creation of the Federal Reserve, who all participated in the secret negotiation and why it happened.

By the way, I suggested we go back to constitutional dictates. Just out of curiosity and for the sake of mental exercise, how would you go about replacing it, Diver? I see that you are a fan of it, but suppose you were not. Doing away with social security doesn't do away with the banking system of debt, and neither does simply going back to the gold standard. As a matter of fact, it would be difficult to do such a thing when the system is based on an ever-growing system of debt whereby simply "using" the money creates more debt.


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## Diver

rice paddy daddy said:


> We will see as soon as the new congress is seated. I've just got that feeling.
> The fed and and those bankers that control the fed are the biggest threat to the American way of life this country has ever seen.
> The fed did not exist until 1913. How on earth did we get along without it if it is so indespensible to the country? How did we carve this country out of the wilderness? Pay for the Louisiana Purchase? Fight the Civil War? Settle the west?


To repeat, the bankers do not control the Fed. The government controls the Fed. The confusion comes from the requirement that banks own stock in the Fed but the stock does not give them any actual control.

As for 1913, you have a point. Of course we could all return to the living standards of 1913, life expectancy of 47, most of the country without electricity, etc. Pull the Fed out of the equation without a suitable alternative and that is pretty much what you would see, i.e. SHTF.

If you want to eliminate the Fed, you need to be clear on the alternative.


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## Salt-N-Pepper

Diver said:


> They are merely a symbol. However, like Murphy, if you want to change, the question becomes to what?


Honestly, I think that ship has sailed. I don't think there IS any fixing it.

I think what's going to happen is we continue down this road until the dollar collapses, and then we will have to see how bad the collapse is to determine where to go from there.

The goose is already cooked so far it's now just burned.

I have no idea how to "fix" something as broken as we have... just like I had no idea how to cure my mom's terminal cancer... it was what it was, and she passed (no need for sympathies, folks, this happened a long time ago and everybody passes sooner or later, she was elderly and had lived a full life).

All I can do is prepare my family for a collapse as best I can.


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## sideKahr

We're not going to have time to fix this. The debt has entered the upward sloping portion on the "hockey stick" graph, and will soon reach its limit. Of course, the present system was designed to fail from its inception. All money systems have a limited lifespan, there have been dozens. Not to worry, the bankers have the next reincarnation of paper money (SDRs) in the starting blocks. The pain caused by the failure of the current system will have us begging them to institute it. And life will go on.


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## rice paddy daddy

sideKahr said:


> We're not going to have time to fix this. The debt has entered the upward sloping portion on the "hockey stick" graph, and will soon reach its limit. Of course, the present system was designed to fail from its inception. All money systems have a limited lifespan, there have been dozens. Not to worry, the bankers have the next reincarnation of paper money (SDRs) in the starting blocks. The pain caused by the failure of the current system will have us begging them to institute it. And life will go on.


And when this system collapses, you can bet the big shots pulling the strings will come out on top, richer than ever.


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## Diver

Denton said:


> First, people need to look back at history, see what led to the creation of the Federal Reserve, who all participated in the secret negotiation and why it happened.
> 
> By the way, I suggested we go back to constitutional dictates. Just out of curiosity and for the sake of mental exercise, how would you go about replacing it, Diver? I see that you are a fan of it, but suppose you were not. Doing away with social security doesn't do away with the banking system of debt, and neither does simply going back to the gold standard. As a matter of fact, it would be difficult to do such a thing when the system is based on an ever-growing system of debt whereby simply "using" the money creates more debt.


I did not say I was a fan of it, but I do think there are more important problems to be solved in order to get us on a sound economic footing. For what I would do, see post #8. I recommend several steps, all of which I consider more important than changing the Fed.


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## Salt-N-Pepper

rice paddy daddy said:


> And when this system collapses, you can bet the big shots pulling the strings will come out on top, richer than ever.


We shall see what we see... they also might be the first ones up against the wall... it has the potential to get ugly...


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## bgreed

OK it is pretty obvious that most here do not understand basic economics nor the reasons that the founding fathers set our money up to be hard currency. So lets star from there the American dollar was to be the equal of what was known at the time as the Spanish dollar which equaled one ounce of Silver. Why hard currency rather than paper money? because hard currency doesn't suffer from inflation. It has a market value (Which for years was set by the federal government) When you do this guess what NO inflation and your currency retains it's value. Remember your grandma telling you a loaf of bread was a nickel? Well it wasn't because things were cheaper it was because the money was worth more because no inflation. Prices go up because the currency is worth less. (Germany saw this after WWI when the mark was nearly worthless and what you might pay for something in the morning might be double by the afternoon. (The curse of fiat money) The founding fathers understood this very well.

If you study a little history you will find that every nation who has ever instituted a central bank (Federal Reserve) their currency has gone to crap. inflation runs rampant meaning purchasing power goes down so you scramble harder to make ends meet. It was baron Von Rothchilds who said "Let me control a nations currency and I will rule" Or something to that effect.

The Fed needs to go period. We need to return to constitutional money, the Federal income tax has to go period. Social security tax has to go period. When the people have control of their money you will have a healthy economy.

You might want to read just about anything by Ludwig VonMises, the book "Economics in one lesson" by "Henry Hazlett.


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## Murphy

As the story goes, in 1910, a secret meeting was held on the J.P. Morgan estate on Jekyll Island off the coast of Georgia. It consisted of ten attendees, the richest men in America at the time.

The realization here came about that in order for the scheme to work the people must believe that the bank is owned and run by the U.S. government. Toward this end, they baptized their new bank “Federal”…as in the “Federal” reserve!

The group struck on December 23rd, 1913 when most of the U.S. congress had already gone home for the holidays. They presented their treasonous act to their newly elected accomplice in the White House, Woodrow Wilson, who had fortuitously already agreed to sign it before he was even elected.

The Fed now has the exclusive power to print America’s money. They loan this money to our banks and our government at interest, putting immediate debt on our own money, printing more and more so each dollar they print becomes worth less than the one before.


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## Diver

bgreed said:


> OK it is pretty obvious that most here do not understand basic economics nor the reasons that the founding fathers set our money up to be hard currency. So lets star from there the American dollar was to be the equal of what was known at the time as the Spanish dollar which equaled one ounce of Silver. Why hard currency rather than paper money? because hard currency doesn't suffer from inflation. It has a market value (Which for years was set by the federal government) When you do this guess what NO inflation and your currency retains it's value. Remember your grandma telling you a loaf of bread was a nickel? Well it wasn't because things were cheaper it was because the money was worth more because no inflation. Prices go up because the currency is worth less. (Germany saw this after WWI when the mark was nearly worthless and what you might pay for something in the morning might be double by the afternoon. (The curse of fiat money) The founding fathers understood this very well.
> 
> If you study a little history you will find that every nation who has ever instituted a central bank (Federal Reserve) their currency has gone to crap. inflation runs rampant meaning purchasing power goes down so you scramble harder to make ends meet. It was baron Von Rothchilds who said "Let me control a nations currency and I will rule" Or something to that effect.
> 
> The Fed needs to go period. We need to return to constitutional money, the Federal income tax has to go period. Social security tax has to go period. When the people have control of their money you will have a healthy economy.
> 
> You might want to read just about anything by Ludwig VonMises, the book "Economics in one lesson" by "Henry Hazlett.


Actually, a hard currency and a central bank are not incompatible. It's just unusual.


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## Diver

Murphy said:


> As the story goes, in 1910, a secret meeting was held on the J.P. Morgan estate on Jekyll Island off the coast of Georgia. It consisted of ten attendees, the richest men in America at the time.
> 
> The realization here came about that in order for the scheme to work the people must believe that the bank is owned and run by the U.S. government. Toward this end, they baptized their new bank "Federal"&#8230;as in the "Federal" reserve!
> 
> The group struck on December 23rd, 1913 when most of the U.S. congress had already gone home for the holidays. They presented their treasonous act to their newly elected accomplice in the White House, Woodrow Wilson, who had fortuitously already agreed to sign it before he was even elected.
> 
> The Fed now has the exclusive power to print America's money. They loan this money to our banks and our government at interest, putting immediate debt on our own money, printing more and more so each dollar they print becomes worth less than the one before.


The US Treasury also has the right to print or coin money.


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## tango

Some say that Kennedy was killed because he wanted to audit the fed--
Some say Ron Paul was blocked out of the system because he wanted to audit the fed--

Don't propose to know , but---

BTW- I am no big fan of Ron Paul.


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## rjd25

We should have never moved off of the gold standard. It is too late now to go back however. Our monetary system is like a morbidly obese guy deciding to start eating less carbs. We need a quadruple bypass to stave off the collapse. Truthfully I only see a few ways we can get rid of the debt that is crushing the country.

1. Inflation
2. War
3. Collapse
4. Shale oil/Natural gas exports

But all of this is moot if we don't stop the bleeding with the deficit. We need a balanced budget amendment.


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## thepeartree

Just a side note or two. As for "regarding #2" in the post above, in case you didn't know, the paper money in this country was imprinted "Silver Certificate" until the 60's. Then it was replaced by Federal Reserve notes. Unlike the theoretical gold standard, the Silver Certificates were redeemable for the equivalent value in 999 silver.


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## Diver

thepeartree said:


> Just a side note or two. As for "regarding #2" in the post above, in case you didn't know, the paper money in this country was imprinted "Silver Certificate" until the 60's. Then it was replaced by Federal Reserve notes. Unlike the theoretical gold standard, the Silver Certificates were redeemable for the equivalent value in 999 silver.


Demonstrating the point that hard currency and a central bank are not incompatible.


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## SARGE7402

I think most of your posts show a complete lack of reality. First Germany's Hyperinflation was due to the massive reparations imposed on them - mainly by France & Great Britain - at the end of WWI ( Hyperinflation in the Weimar Republic - Wikipedia, the free encyclopedia ). As far as secret meetings being the foundation of the FED, perhaps reading the documents that were generated by the US Treasury before the FED was proposed would help enlighten those who continue to BASH the FED. It ought to be noted that the plan that came from the secret meeting - The Aldridge Plan - was never passed.

If you want to stop the FED from printing money, then you need to put the brakes on Congress spending more than it makes. You want to abolish the Income tax, you have to get an amendment passed to the constitution same goes with just about everything that you all want to have done.

This thread and others on taxes and "14th Amendment Citizens" have come up so many times over the past two years as to be almost laughable. And in every case its someone complaining what they don't like and how it ought to change. But no coherent plan(s) for correcting the alleged problem. Nothing from anyone that is a recognized expert in their field. If anyone is quoted, they're like our present crack pot in the White House, someone with an untested no details trust me I know what I'm doing "plan to change things". We've all seen just how well that has worked out with BHO.

And lastly, Do you all really think that anyone really gives 2 cents for what you think? At last count we were less that 10,000 on this site. Unless you're like the communists were in pre revolution Russia and ready to do extreme violence to get your way, you all are just peeing in the wind.


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## Murphy

As Sen. Barry Goldwater (R-AZ) pointed out, 

“International bankers make money by extending credit to governments. The greater the debt of the political state, the larger the interest returned to lenders. The national banks of Europe are (also) owned and controlled by private interests. We recognize in a hazy sort of way that the Rothschilds and the Warburgs of Europe and the houses of JP Morgan, Kuhn Loeb & Co., Schiff, Lehman and Rockefeller possess and control vast wealth. How they acquire this vast financial power and employ it is a mystery to most of us.”


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## Murphy

The Four Horsemen of Banking

*Bank of America
*JP Morgan Chase
*Citigroup 
*Wells Fargo

...Own the Four Horsemen of Oil
*Exxon Mobil
*Royal Dutch/Shell
*BP 
*Chevron Texaco

..in tandem with
*Deutsche Bank
*BNP (Banque Nationale de Paris)
*Barclays 
*other European old money behemoths

But their monopoly over the global economy does not end at the edge of the oil patch. According to company 10K filings to the SEC, the Four Horsemen of Banking are among the top ten stock holders of virtually every Fortune 500 corporation

So who then are the stockholders in these money center banks?

This information is guarded much more closely. Inquiries to bank regulatory agencies regarding stock ownership in the top 25 US bank holding companies were given Freedom of Information Act status, before being denied on “national security” grounds. This is rather ironic, since many of the bank’s stockholders reside in Europe.

One important repository for the wealth of the global oligarchy that owns these bank holding companies is US Trust Corporation - founded in 1853 and now owned by Bank of America.

Recent US Trust Corporate Director and Honorary Trustee was Walter Rothschild.


Other directors included:
*Daniel Davison of JP Morgan Chase
*Richard Tucker of Exxon Mobil
*Daniel Roberts of Citigroup 
*Marshall Schwartz of Morgan Stanley 


J. W. McCallister, an oil industry insider with House of Saud connections, wrote in The Grim Reaper that information he acquired from Saudi bankers cited 80% ownership of the New York Federal Reserve Bank - by far the most powerful Fed branch - by just eight families, four of which reside in the US.

They are,

Goldman Sachs
Rockefellers
Lehmans
Kuhn Loebs 
Rothschilds 
Warburgs
Lazards 
Israel Moses Seifs of Rome

CPA Thomas D. Schauf corroborates McCallister’s claims, adding that nine banks control all twelve Federal Reserve Bank branches. 

He names,
N.M. Rothschild of London
Rothschild Bank of Berlin
Warburg Bank of Hamburg
Warburg Bank of Amsterdam
Lazard Brothers of Paris
Kuhn Loeb Bank of New York
Israel Moses Seif Bank of Italy
Goldman Sachs of New York 
JP Morgan Chase Bank of New York

Schauf lists William Rockefeller, Paul Warburg, Jacob Schiff and James Stillman as individuals who own large shares of the Fed. 

The Schiffs are insiders at Kuhn Loeb. The Stillmans are Citigroup insiders, who married into the Rockefeller clan at the turn of the century.


We need to get rid of the Federal Reserve, How? I wish I knew.


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## SARGE7402

If you don't know how, what replaces it could be a thousand times worse. Remember this is no different than you going out and applying for a new line of credit or credit card when you max out the old one


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## Murphy

Worse...lmao


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## Denton

Diver said:


> Demonstrating the point that hard currency and a central bank are not incompatible.


Yes, and that there is no room for money (as currency and money are not the same thing) in a system based on credit and debt.


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## Diver

For the US banks the top stock owners are mutual funds, pension funds and collective funds, as is the case with most large corporations in the country. In the case of the foreign banks on your list you will find similar top owners with some government stakes tossed in that still remain from the last financial crisis and some sovereign wealth funds as well.


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## Murphy

you are a slave and probably didn't know it. Slave, meet your master


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## TacticalCanuck

When RFID chips become law......


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## Smokin04

OP, I totally agree with your post. The FED is the root of all debt, crashes, and inflation in our history. The FED needs to go away, or ACTUALLY become a government agency with oversight in congress. At least on paper, that will be effective...unfortunately, Congress isn't full of saints either.


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## Diver

Smokin04 said:


> OP, I totally agree with your post. The FED is the root of all debt, crashes, and inflation in our history. The FED needs to go away, or ACTUALLY become a government agency with oversight in congress. At least on paper, that will be effective...unfortunately, Congress isn't full of saints either.


Perhaps you can explain how we managed to crash the Continental dollar then? 

or if you want to look back to Europe, the Tulip bulb craze?


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## Ripon

Where is the hyper inflation the Fed critics said we'd have by now?


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## Diver

Ripon said:


> Where is the hyper inflation the Fed critics said we'd have by now?


People are expecting inflation due to the rapid increase in the monetary base (narrow measure of money supply). The problem is that inflation is driven by not only the money supply, but also the velocity of money. The velocity of money sank like a stone when the financial crisis started and hasn't come back. At the same time tighter capital requirements for banks mean lower levels of loans, as well as lower levels of deposits. That translates into a lower money supply when you look at broader measures than the monetary base.

It looks to me like rampant inflation will not occur absent some economic growth and growth of bank assets. Growth of bank assets is likely to be slow for a couple reasons. 1) Capital standards are still being raised by regulators, 2) Business is just plain unattractive for a variety of reasons. The simple thing for banks to do is simply shrink. Reduce lending and deposits to fit the available capital rather than grow capital to accommodate a growing business.

That pretty much explains our anemic recovery.


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