The Federal Reserve of America is a privately owned institution. It is not Federal and has no reserves.
According to Devvy Kidd in her book “Why a Bankrupt America”, If the Federal Reserve wants to print 1,000 one-hundred ($100) bills, their total cost for ink, paper, plates, labour, etc. would be approximately $23.00. Now, if you do the math, the total cost of 10,000 bills would be $230.00 ($.023 x 10,000). But, and here's the catch - 10,000 $100 bills equals $1,000,000! So, the Federal Reserve can "create" a million dollars, and then lend it to the U.S. Government (with interest) for a total cost of $230.00.”
How did this great deception come about?
During the 16th century in Europe, at the dawn the renaissance and the forerunner of the industrial revolution, Goldsmiths started storing gold for customers. The Goldsmiths would store the gold, guaranteeing its security for a fee, and give out receipts for the gold to its customers. E.g. if 10 ounces of gold was be stored with Goldsmith, the Goldsmith would the give the customer a receipt for the 10oz of gold. These receipts then became acceptable as a means of exchange as it was easier and safety to use. This was the birth of paper money. It was also 100% backed by gold, hence the creation of the gold standard.
If a Goldsmith had 1000oz of gold that they were keeping for their customers, then the goldsmith would also have a record of receipts totalling 1000oz of gold. The value of the gold and paper was at a 1:1 ratio this is known as the gold standard, an equal amount of gold to receipts. It was not long before goldsmiths started writing receipts for gold that they did not have and then loaning these receipts out for a fee.
A Goldsmith who had 1000oz of gold could have receipts to the value of 2000oz circulating in the public domain, and thus doubling the profit base and charge interest rates on top. This meant that only half of their money/receipts were actually backed by physical gold. At this point, receipts/paper money ceased being redeemable on a 1 to 1 basis with gold and took on a value of its own while still maintaining the illusion that it was directly exchangeable for gold.
This scenario has a paper at a 2:1 ratio with gold; only 50% of the receipts/paper money in circulation at any given time could be exchanged for gold. This was the birth of ‘Fractional Reserve Banking’. The reserve being 50%, therefore money was no long wedded to the gold standard and had taken on a unique value of its own.
Many banks did fold as a result of customers seeking to exchange their paper money for gold and banks not being able to provide the gold were driven into bankruptcy. However, Europe was at this time, experience monumental change.
This was known as ‘the gold standard’, TODAY’S MONEY IS NOT BACKED BY GOLD, TODAY’S MONIES VALUE EXISTS ONLY IN OUR MINDS.
In 1910, on Jekyll Island, Georgia, A meeting organised by the two principal Rothschild representatives in New York, J. P. Morgan Co., and Kuhn, Loeb & Co. took place between Senator Aldrich, Assistant secretary of the Treasury; Frank Vanderlip, President of the National City Bank of New York, Paul Moritz Warburg (A German banker who was acting under orders from and financed by the Rothschild family), Benjamin Strong (J.P. Morgan), and number of other representatives of the world’s high-powered banking establishment e.g. David Rockefeller. The basis for this meeting was to write an act establishing the Federal Reserve Bank. At the end of the week, a Bill was written; a forerunner to the Federal Reserve act.
Following this meeting, an ‘education’ fund of $5 million was set up by the big banks of New York to finance the number the nation’s university leading professors to endorse the new bank.
Woodrow Wilson at Princeton University was one of the first to endorse the Bill. The bankers then funded Wilson’s campaign for President.
On December 23, 1913, just days before Christmas, when much of the congress was on vacation, having being told that nothing would be done about the new Bill until well into the New Year, President Woodrow Wilson signed the Owen-Glass Act, Creating the Federal Reserve System. A few years later, Wilson, referring to the Federal Reserve said, "I have unwittingly ruined my country”. Edward M. House as Secretary of State was a firm supporter of the Federal Reserve System and directed Wilson to favour the move.
Up until the creation of the Federal Reserve, the federal government was small and was paid for by tariffs and excise taxes.
To ensure that the interest would be paid on this new debt (The debt being the money or principle as created out of thin air by the Fed), a guarantee, by the US government, of being able to pay this debt was required by the bankers /The Fed. Income taxes, taxing the citizens of the United States directly, were the way the government guaranteed their ability to repay the private bankers for the loans that that banker gave the government.
Taxing the people directly also stopped individual states from opposing the new structure. Guaranteeing the loan via direct taxation of the people of the United States was a copy of the same system adopted by the Bank of England 250 years earlier.
Just weeks before the passing of the Glass-Owen Bill, Congress had finally been able to pass a law making income tax legal. The law was important because bankers now had in place a system (The Federal Reserve Bank) that would run up a virtually unlimited federal debt, with the income tax acting as a guarantee of debt repayment, although the debt could never fully be repaid.
Even Woodrow Wilson on seeing the outcome of his creation stated. “Some of the biggest men in the United States, in the field of commerce and manufacture, are afraid of something. They know that there is a power somewhere so organised, so subtle, so watchful, so complete, and so pervasive, that they had better not speak above their breath when they speak in condemnation of it”
The Federal Reserve, being subject to oversight by congress, sounds like a protection device for the people, however, in its entire 103-year history of the Federal Reserve has not been audited even once. It is not that the proposal to audit ‘The Fed’ hasn’t been tabled before congress; it’s just that those who do put the proposals forward end up losing their seats before any action can be taken. Their opposition seems to always win at the next congressional election. There are also those, like Congressman Larry McDonald, who died suddenly, shortly after tabling the motion.
On 4th June 1963, President John F Kennedy signed ‘Executive order 11110’ which grant the ‘United States notes’ backed by silver reserves to be printed by the US Treasury. In doing this Kennedy was attempting to break away from having to borrow money from the privately owned Federal Reserve Bank. Within five months $4.3 billion debt free Untied States notes were issued. Then on 22nd November 1963, Kennedy was assassinated. Following the assassination, the Silver backed debt free notes were removed from circulation. Although the Executive order still stands no President since Kennedy has attempted to enact it.
These are only some highlights, I’ve condensed this information down a lot, but I welcome any questions.
One more thing, this cabal who own the US Federal reserve and The Bank of England, took over the Australia reserve bank in 1959. They now own every central bank in the world except North Korea, Iraq and Syria.
Paul Warburg -
Father of the Federal Reserve