Worth the Read… The FED

By: James Burge

I just came across an amazing post about the privately owned US Federal Reserve.

Part One

Part Two

Basically, Congress was given the power by the US Constitution to “To coin Money, regulate the value thereof,” but somehow has given that power to a private bank known as the Federal Reserve. They have never, in the history of the reserve, been audited mostly because no one, not Congress, not the IRS, have the power to do so. When congress spends money it doesn’t have (deficit spending) they issue a government bond that is then bought by the Federal Reserve, thereby providing the money needed. They get the money from the US Treasury which prints the money at a cost of about $0.03/$100. They then charge the American Government interest on moneys provided. The amounts to over $100 profit for every $100 government deficit spending. Any other privately owned company would have to pay taxes on their profit, but not the FED. They claim only $20 billion profit a year which is returned to the US Treasury. The rest is spent abroad, without oversight, in whatever way the owners of the FED desire.

The U.S. Government now owes the FED owners the interest on those bonds. Remember the FED owners do not earn the bonds, they simply arrange for printing the money to buy the bonds. In other words, they created money out of thin air, and exchange it for the interest bearing bonds.

When the OWNERS of the FED receive the interest on the BONDS they’re holding, they are receiving that money essentially for free and without the need to pay taxes on the profit.

Why don’t we learn about any of this in school???

Update: Came across another article today that quotes a Thomas Edison New York Times article from 1921.

Now, that is what Henry Ford wants to prevent. He thinks it is stupid, and so do I, that for the loan of $30,000,000 of their own money the people of the United States should be compelled to pay $66,000,000 — that is what it amounts to, with interest. People who will not turn a shovelful of dirt nor contribute a pound of material will collect more money from the United States than will the people who supply the material and do the work. That is the terrible thing about interest. In all our great bond issues the interest is always greater than the principal. All of the great public works cost more than twice the actual cost, on that account. Under the present system of doing business we simply add 120 to 150 per cent, to the stated cost.

Update 2.0: Came across another article, Bag the Fed! Looks like the recent economic ‘crisis’ is sure getting people talking about the Federal reserve.

The Fed always increases the money supply to increase the money owed to it. That money is also loaned out, as said earlier, at interest, creating more debt, which equals a kind of economic slavery because it’s impossible for the government to ever free itself from this self-generating debt-load.

Update 3.0: Come across this google video, haven’t had a chance to watch it yet… Linked from BrasscheckTV.

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