The FED and Money- An Explanation for Dummies Part 3

This is part 1 of a 5 part clip from Zeitgeist. Note that it only has 3 million views. In America, that would amount to 1% of our population.

Thomas Jefferson hated the idea of a central bank run by private bankers. Jefferson was a polymath. A genius in many respects and in many pursuits. He knew that private bankers would become very powerful and ultimately own and enslave America.

President Andrew "Old Hickory" Jackson eliminated one version of the central bank. He is the only President to eliminate the debt. He also detested the electoral college. Lots to like about Jackson.

Lincoln was offered a 36% interest loan by international bankers for financing the civil war. Lincoln refused and promptly began issuing the "greenback." A fiat currency that worked just fine throughout the war and long after he was killed.

All in all, we as a country managed to turn back several attempts of international bankers to control our currency. In 1913, Woodrow Wilson changed all of that. He signed over the rights to print our currency and thus control the quantity of our money by that abomination called the Federal Reserve Bank. The Federal Reserve bank is no more owned by this country than Federal Express is. It is a private corporation with private stockholders. It is a for profit business and and it's arms (member banks) are highly leveraged- for profit businesses.

President Kennedy had every intention of eliminating the FED in the early 60's and his intentions were well telegraphed. We all know how that turned out.

We cannot audit the Fed because we don't own or control it. It has no known reserves despite it's name which implies that it does. In fact the whole name of this bank is designed to deceive. Who owns the Fed? A giant conglomeration of banks and bankers. Privately owned.

http://www.thirdworldtraveler.com/Banks/Web_Of_Debt.html

You'll note that I never use the Federal Reserve's website. They try and convince you that Congress has "oversight." That they work on behalf of government. Try reading those pages and you will want to eat your brain. No wonder the FED is such a mystery. They work very hard at confusing and misleading people. It works.

What kind of an idiot borrows his own money and pays interest to someone else? Nobody that I know of- but that is precisely what your government does when it pays interest to the FED. Interest by the way- that is paid for by you.

How much money does the FED make? The FED and it's supporters try to minimize that figure as much as possible. They will claim that they only make 6% and refund a portion each year. That is complete and utter bullshit.

The FED supplies money at virtually no cost to it's members banks, it's stockholders. In enormous amounts. For the last two years, they've been buying treasuries at virtually no cost to them and you are paying those member banks interest on the corresponding bonds. In a matter of weeks, the FED will surpass Japan and China as the biggest owner of US debt. In fact the FED has been selling debt in excess of what is needed to actually fund our deficit. The FED also charges us interest on the amount of money they have to hold in reserve- which further clouds the picture.

What pitched the world into collapse in 1929? Margin. The banks allowed any Tom, Dick, or Harry to take out loans to buy stock at a ratio of 10 to one. With a one thousand dollar deposit, you could buy 10,000 bucks worth of stock. People absolutely flooded the market with margin loans, buying stock with money that did not exist. And quietly, the bankers snuck out near the top. And then they started making margin calls as the market collapsed- forcing people to cover their outstanding margin loans within 24 hours. All that theoretical money disappeared. It never existed in the first place. The US money supply deflated for the following 4 years.

Banks used easy money and margin to sell every idiot that could fill out an application in America a home. These crappy loans were sold to Fannie Mae and Freddie Mac. The losses are staggering. At least 6 trillion. You are picking up the bill. The FED sells debt to finance the interest on those losses.

How much money does the FED make on it's Permanent Open Market Operations or POMO? Buying member banks treasuries freeing up their capital for other purchases? Inflating the stock market?

Leveraging non existent money is a major concern. This is precisely what the FED and it's member banks do through the use of fractional banking. They are allowed to loan at least nine times what they have in actual deposits. That's the minimum. How about the FED? Who knows? When you run yourself with no threat of an audit...who knows? Those loans create money. Debt. That is precisely why it is difficult to assess just how much money the FED and it's members make at your expense.

At the end of the day, it gets real simple. They are robbing us blind. We need facts.

In fact, the AUDIT the FED bill is trying to do precisely that. It's hard to figure out what any entity makes without an audit. And you can damn sure bet it's a helluva lot more than the FED wants to disclose. That's why we haven't been able to audit the bank for 97 years. They don't want you to know. Like everything else they do- they practice deception right down to their name and the gibberish on their website.