The Federal Reserve in this century
Dr. A. H. Krieg
The history of the Federal Reserve takes us back to February 3rd 1913 and the enactment of the 16th amendment to the Constitution. It was passed by congress on July 2, 1909. On January 10, 2008 the Federal District Court in Chicago issued a permanent injunction against Bill Benson on the grounds that by offering information demonstrating that the 16th amendment was not legally ratified, he was promoting an abusive tax shelter. The court furthermore refused to examine “government-certified” documentary evidence, deciding instead that such evidence was “Irrelevant”. Bill Benson had through extensive research been able to prove that the sitting Secretary of State Philander Knox had fraudulently declared that three-fourth of the states had ratified the amendment. There were at the time 48 states and only 28 had ratified while three had withdrawn, 25 of 48 is not 3/4th. This is certainly not the only amendment that was not property ratified.
The Federal Reserve Act (USC ch.3) was enacted by congress on December 23, 1913 in the middle of the Christmas break. Like its parent it was enacted over the holiday because it was unpopular with the people. For details of the act the reader should read, Money a primer, by A. H. Krieg, Secrets of the Federal Reserve, by Eustace Mullins, and The Creature from Jekyll Island, by Griffin. The promise of the banksters was that enactment of the Act would ensure that stability of the markets and the currency. The exact opposite has proven to be the fact. Andrew Jackson was through his powerful personality able to cancel the congressionally established Second Bank of the United States in Philadelphia in his second term that had become the toy of the Biddle family and was robbing the U.S. Treasury blind. The individual states had state banks that the Rothschild world banksters could not control, so they met at Jekyll Island and Paul Wartburg a German banker wrote the FRA, which was then presented to congress which passed it.
The Federal Reserve is a private banking monopoly granted by congress in 1913. It consists primarily of NY banks and the 12 Federal Reserve Banks, called the Federal Reserve System. There are five regulatory agencies within the system. 1) OCC (Comptroller of the Currency). 2) FDIC (Federal Deposit Insurance Corporation) (bankrupt as of this time) 3) The FRS (Federal Reserve System). 4) The NCUA (National Credit Union Administration). 5) OTS (Office of Thrift Supervision). Bear in mind that the FRS has not been audited in over 50 years, and that all sub agencies do not answer to the government but to the FRS, an un-audited, self-governing, and self-regulating agency, and the only such structure in our government. No one has oversight of the FRS. Additionally there is state supervision of state chartered banks called “The Department of Financial Institutions” that also reports to the FRS. A board of governors controls the FRS which is appointed by the president from three people suggested by the FRS, in other words the president is offered a choice of one of three offered candidates, chosen by the FRS board. There are seven members and one chairman, presently, Benjamin Shalom Bernanke. The board has seen a Jew in the chairperson position for the last three decades.
The FRS monopoly controls all banking, all banking insurance, all savings associations, all Federal Credit Unions, all bank holding companies, all foreign banks on U.S. soil, and any and all branch operations of domestic and foreign banks. They control all functions that these organizations are involved in. What congress did in 1913 was to turn over the entire financial system of America to a group of international bankers whose interest do not lie with America but with profit for themselves their stockholders and friends. The purpose of the board is to regulate the financial system, and to establish regulatory practices regarding the monitory policies of the nation, in private hands without congressional oversight. This provides a reasonable background for you to understand what has been taking place in the last 15 years in banking and why we are in the terrible trouble that has now become apparent.
It is wise to recall that the real value is that of hard assets. Gold silver and platinum have never changed in purchasing power value, what changes is the value of the issued fiat currency. As the value of the dollar falls as it has since 1913 the price of hard assets rise. Thus gold was at $32. in 1913 and is today at $1279. It is also wise to recall that these commodities are subject to massive market manipulation in the form of short selling by very large institutional investors. Thus J.P. Morgan Chase has been manipulating the price of gold and silver for the entire last decade, making billion every year.
Regulatory and statutory action by the U.S. government relating to money has proven to be a major issue in the value of the dollar, or more exactly in its purchasing power. Regulations like the Dodd-Frank, Wall Street Reform and Consumer Protection Act, probably the most complicated item of legislation in U.S. history have had a profound effect on all Americans. The horrific legislation is proven as poor by the fact that both senators refused to run further terms after the act was passed they knew that they could not be re-elected. The erroneous law is based on the miss-conception that government and only governments are able to regulate markets. The fact that left alone, free markets tend to be self-regulating, which is a historically proven fact but is never considered by progressives. Dodd-Frank, both of whom are progressive Democrats, impacts every financial transaction between banks, trading houses and individuals and consists of 43 individual regulatory practices. A large portion of this law is unclear, and is subject to rule making by various bureaucracies, without congressional oversight.
ERISA the Employee Retirement Income Security Act is another all encompassing knee-jerk congressional legislative error that has wreaked havoc on small business. Enacted in 1974 it was touted as instituting minimum standards for pension plans in private industry. It does not address public sector pension plans, which are by far the most seriously underfunded plans. The cozy relationship between public sector unions and politicians that negotiate labor contracts together is totally overlooked, while scores of towns and cities declare bankruptcies because of inability to fund public sector pensions. Prior to ERISA my own company Widder Corp. had an employee beneficial pension plan, which had invested its entire asset in Widder corporate plants mortgages that were over 50% paid off and gave the employees a 14% investment bonus. When ERISA was enacted we were instructed that this investment, which was over half covered was insecure and that we had to opt for an insurance plan based plan that eventually paid our employees 4% or 10% less than before. The authors of ERISA tried to correct inadequacies of large labor unions by bundling all employers small and large business in the same bag. We fully understand who and what was behind ERISA, the insurance industry.
Banking regulations enacted in 1933, (The Banking Act of 1933 Glass-Steagall) regulated the affiliation between investment banks, commercial banks and securities traders. Legislation of the 1960’s essentially struck down the restrictions and allowed commercial banks and trading companies to engage in and to expand into the securities markets. After the enactment of the Gramm-Leach-Billey Act of 1999 banking changed rapidly and banks also became trading companies. It resulted in 1988 with the merger of Citibank with Salomon Smith Barney merging one of America’s largest banks with the largest US Securities firms. The jig was up and the stage was set for the largest banking collapse of the 100 years of FRS banking control, which precipitated in 2008. Legislation to bring the Glass-Steagall act back is vested in “The Return to Prudent Banking Act of 2011”. It had 84 cosponsors in the House, but has seen no vote.
The FRS rules everything regarding finance. From Credit and Debit card interest, fines for late payments, mortgages, prime and secondary interest rates, interest on the national debt, the FRS regulates everything.
Beginning in the Bush administration and rapidly accelerating in the Obama administration the FRS spearheaded a series of financial bailouts of their own banking systems, as well as international banks, indirectly paid for by the American taxpayers. These actions have resulted in an on the books national debt that is now approaching $17 trillion. The hidden over $ 100 trillion debt which includes such items as Obamacare, Medicare, Social Security, Departments of Energy, Transportation, and other debt projected forward remains unreported, as does the fact that it is impossible without dollar devaluation to pay this debt back. While socialist Senator Bernie Sanders, Denis Kucinich, and conservative Ron Paul much to their credit attempted to get an, audit the Fed amendment passed in congress, it remains in limbo, the half hearted audit proved nothing we did not already know. The Fed and especially its board of governors are diametrically opposed to an audit because it would verify the gross mismanagement and theft that has occurred. From 2007 to 2010 the FRS provided trillions dollars to international banking bailouts to avert potential bank failures. This included, AIG, JP Morgan Chase, Bear Sterns, Bank America, Citygroup, (City Bank), Morgan Stanley, Deutsche Bank, CS, UBS, Bank of Scotland, Barkley’s, Merrill Lynch, that was then acquired by Bank of America which got massive tax write offs and benefits for the purchase, again paid for by the American taxpayers. Over those few years Citygroup got $2.5 trillion, Morgan Stanley $2 trillion, the Merrill Lynch purchase by Bank of America cost taxpayers $1.9 trillion, and then Bank of America borrowed another $1.3 trillion.
Action especially by the Obama administration regarding banking and the policies of the FRS has placed America firmly into bankruptcy, indebted generations of Americans to a corrupt banking monopoly. Since 1950 the purchasing power of the dollar has declined, and with that degeneration the average Americans spendable income has fallen every single year for 63 years.