How the Fed works. A must Read

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chris geo

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How the Fed works. A must Read
« on: December 31, 2008, 05:25:24 PM »
I had a few questions about credit so I asked at http://creditboards.com. The moderators were very nice to me, treated me with respect but censored this information from getting out to the public. I wanted to contribute something as a new member so I wrote a short essay. I figured I'd post it here so my work doesn't go to waist.




Hello all. I wanted to contribute something to the board since I am new here. I'd like to talk a little bit about the Federal Reserve, who's behind "credit" and why the interest rates are so ridiculous.

The best documentary on the matter is America: From Freedom To Fascism by the late great Aaron Russo (Trading Places, The Rose etc). You can buy the DVD anywhere on the internet but you can watch for FREE on google video or youtube.

Another great resource is Zeitgeist: The Movie. The first part discusses religion, the second part discusses 9-11 but the third part discusses the Federal Reserve system and our currency. If you watch only one, please watch the third part. Zeitgeist: Addendum is a great movie too, but the second half goes more into "philosophy" than real life usefulness but the first half is VITAL.


OK. So what is credit? Credit is slavery. They send you credit cards at age 18 in order to get you to be a slave to the system. You don't understand, you've never been educated in the matter and you are a naive child. The point is to get you in the exact point to where you are overwhelmed in debt but still able to pay it off. As a matter of fact, I know a gentleman who works for Wells Fargo who's job is to figure out how much debt you are capable of handling without topping you over to the point of non-repayment. So they want ALL of your money for a little bit of theirs (which doesn't even exist in the first place, I'll explain further on down).

Ever wondered why a $200,000 house costs $600,000 by the time you pay it back? Does that really seem fair? "Well yes, it's a 30 year loan, they have to make their money". Well you are going to be shocked with this! Nope! It's not fair! Because of "the fractional reserve system".

Our banking system is a "Fractional Reserve System". This means the banks are only required to carry 10% of their reserve and they are allowed to loan out 90%. So when you make a $500 deposit into your bank account they are now able to loan out $5,000 based on that $500 deposit. That is why 10% down is the magic number that will pretty much guarantee you a secured loan. With 20% down (they LOVE that!) you can have a credit score of 400, no job and buy a $20 million dollar mansion with 20% down. Think about it. If you give them 20% of 20 million dollars they can now loan out 40 million dollars to other people who WILL pay it back. And they've just stolen a 20 million dollar house for 2 million dollars.

But wait! It get's deeper!

They repo your home or car and auction it well below value. Let's say they get 10 million for it. Well, now another bank gives them 10 million dollars and from that 10 million they just added 100 million to their lending power.

See, in today's society of credit, you never actually take out the money. It doesn't even exist aside from the computer screen. You buy a house for $100,000, Bank Of America funds the home and gives it to Chase who is the loan holder. Now Chase has $1,000,000 of loaning power based on that. So Chase pays $100,000 of the loaning power to fund a home that Bank of America owns. So now Bank of America has an additional $1,000,000 loaning power. 

Fractional lending began in the early 1900's (in the United States anyway but it's an ancient scam) just before we were taken off of the gold standard in 1913 by bankers such as the Rothchilds and J.P. Morgans. It began as a "margin loan". The Federal Reserve was implemented and all gold was recalled under penalty of imprisonment and exchanged for useless "Federal Reserve Notes". If you look at a dollar bill before 1913 it says "redeemable in gold (or silver)" and after 1913 "this is legal tender". This means the only thing regulating the money is the amount in circulation.

But the Federal Reserve (which is about as Federal as Federal Express) not only supplies the money to the United States government but does so at INTEREST. So every dollar in circulation comes with a % of INTEREST that must be paid back to the Federal Reserve. In a central banking system there is and can NEVER be enough money in circulation to pay back the interest because where are we going to get the money to pay back the interest? We have to borrow more money from the Federal Reserve.

Back to margin loans. Everyone in the 20's seemed to be making money in the stock market and you can own $100 worth of stock with $10. But the catch was the loan could be called in at any time and had to be paid back within 24 hours. This resulted in the selling of the stock. And in 1929 Morgan, Rothchild and his buddies quietly exited the market and began calling in every single margin loan causing a panic.

As you probably know when a mass amount of stock is sold the value drops enormously. This allowed Morgan and his buddies to buy up rival banks at pennies on the dollar and caused a bank rush because people were afraid of losing their deposits to closing banks. And since there was only 10% of the reserve, the people were not able to get their deposits. So instead of increasing the money supply to help level off the playing field the Federal Reserve actually DECREASED the money supply and caused us to spiral into the greatest depression in history.

It was orchestrated with perfection "in the same way you would calculate a mathematical equation".

Benjamin Franklin said "If there is one specific reason for the American Revolution it would be the Kings refusal to allow the colonies to operate an honest money supply". Of course high taxes had something to contribute but the King outlawed the "Greenbacks" the colonies were using and forced them to borrow money from the Central bank of England, with each note attached a percentage of debt.

Thomas Jefferson said "If the people ever allow a central bank to control the money supply they will wake up homeless in the land their forefathers conquered".

And it's 100% true. 550,000 jobs lost in November. Foreclosures are at an all time high and people are getting kicked out of their homes because of the fraudulent credit system. With home loans, car loans etc. you are set up to FAIL. With credit cards you are set up to pay the minimum payment for 30 years and pay $30,000 on a $3,000 purchase.

Because of the "credit crunch" our interest rates went up to 27%. We pay around $800/month in INTEREST ALONE and about $200 in principal. It's a never ending cycle of debt.


Now the same thing that happened in 1929 is happening today. They orchestrated a panic in the stock market and put several companies and banks out of business. They get EIGHT AND A HALF TRILLION (YES TRILLION) dollars in "bail out money" and give each other bonuses, go on million dollar "team building retreats" and buy up rival banks, corporations etc. while you and I sit homeless in the country our forefathers conquered.

So they print 8.5 TRILLION out of thin air that the tax payers are obligated to pay back. Now they buy up foreclosed homes and SELL IT BACK TO US! They sell off our infrastructure to foreign corporations and turn highways paid for by the tax payers into TOLL ROADS.

I am a victim of foreclosure and I've never had a mortgage. I had a sheriff knock on my door one day and say I had 72 hours to vacate the home I was renting and paid up in rent on.

It's time for us to stop worrying why we are drowning in debt and start finding out the REASON! Why our homes are being stolen from under us.



End of Part 1.

[Mod Edit:  The united states didn't officially go off the gold standard until 1971.  FDR did change the price of gold from 20.83 to 35 an ounce so he could print more money]

Offline Freeski

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Re: BANNED POST ON CREDITBOARDS.COM
« Reply #1 on: December 31, 2008, 05:57:20 PM »
That was an excellent read, sir!
"He who passively accepts evil is as much involved in it as he who helps to perpetrate it. He who accepts evil without protesting against it is really cooperating with it." Martin Luther King, Jr.

Offline Elvis

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Re: BANNED POST ON CREDITBOARDS.COM
« Reply #2 on: December 31, 2008, 06:01:54 PM »
So now post it everywhere - with intro. Excellent - looking forward to Part2 ...
"A great civilization is not conquered from without until it has destroyed itself from within." - Will Durant

Offline Freeski

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Re: BANNED POST ON CREDITBOARDS.COM
« Reply #3 on: December 31, 2008, 06:30:00 PM »
Fix the typo before it goes viral, for the love of God!

Thomas Jefferson said "If the people ever allow a central bank to control the money suppley they will wake up homeless in the land their forefathers conquered".
"He who passively accepts evil is as much involved in it as he who helps to perpetrate it. He who accepts evil without protesting against it is really cooperating with it." Martin Luther King, Jr.

Offline Freeski

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Re: BANNED POST ON CREDITBOARDS.COM
« Reply #4 on: December 31, 2008, 06:34:39 PM »
yea, I know. That's what you get for TRYING to type 150 words per minute :P


can we get a mod in here please? :P

We should ask the mods to clean up all of the typos on the forum! Do a global spellcheck and select "Yes To All" to make it go faster!
"He who passively accepts evil is as much involved in it as he who helps to perpetrate it. He who accepts evil without protesting against it is really cooperating with it." Martin Luther King, Jr.

Offline NWOSCUM

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Re: BANNED POST ON CREDITBOARDS.COM
« Reply #5 on: December 31, 2008, 06:38:33 PM »
hahahaha. I would but as you know, you can't edit the post after a few minutes. So my hands are tied on the matter.

Lol, I am a speeling NAZI and even I missed it.  ;D
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shirteesdotnet

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Re: BANNED POST ON CREDITBOARDS.COM
« Reply #6 on: December 31, 2008, 06:50:58 PM »
Nice post Chris. Excellent. I cant wait to read part 2 and any more parts! I'll be forwarding the whole thing on to friends and family. Believe it or not, some of my family dont get the whole thing going on in Wall St. Now, my brother is about to hand over his house to the HUDs new program called "HOPE for Homeowners". Basically, if he or any decedents ever sell the house in the future, the government gets 50% of the profits. My brother says it doesnt matter becuase house values have dropped in our area, but, long term it will go higher. And everyone knows the regular American has 80% of his wealth in the appreciation of their homes. When house prices finally do get better again one day... the government will have 50% of his wealth!

Offline Optimus

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Re: BANNED POST ON CREDITBOARDS.COM
« Reply #7 on: January 01, 2009, 03:05:12 AM »
Good post Chris. Looking forward to part 2.
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Anti_Illuminati

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Re: BANNED POST ON CREDITBOARDS.COM
« Reply #8 on: January 04, 2009, 01:10:58 AM »
I had a few questions about credit so I asked at http://creditboards.com. The moderators were very nice to me, treated me with respect but censored this information from getting out to the public. I wanted to contribute something as a new member so I wrote a short essay. I figured I'd post it here so my work doesn't go to waist.




Hello all. I wanted to contribute something to the board since I am new here. I'd like to talk a little bit about the Federal Reserve, who's behind "credit" and why the interest rates are so ridiculous.

The best documentary on the matter is America: From Freedom To Fascism by the late great Aaron Russo (Trading Places, The Rose etc). You can buy the DVD anywhere on the internet but you can watch for FREE on google video or youtube.

Another great resource is Zeitgeist: The Movie. The first part discusses religion, the second part discusses 9-11 but the third part discusses the Federal Reserve system and our currency. If you watch only one, please watch the third part. Zeitgeist: Addendum is a great movie too, but the second half goes more into "philosophy" than real life usefulness but the first half is VITAL.


OK. So what is credit? Credit is slavery. They send you credit cards at age 18 in order to get you to be a slave to the system. You don't understand, you've never been educated in the matter and you are a naive child. The point is to get you in the exact point to where you are overwhelmed in debt but still able to pay it off. As a matter of fact, I know a gentleman who works for Wells Fargo who's job is to figure out how much debt you are capable of handling without topping you over to the point of non-repayment. So they want ALL of your money for a little bit of theirs (which doesn't even exist in the first place, I'll explain further on down).

Ever wondered why a $200,000 house costs $600,000 by the time you pay it back? Does that really seem fair? "Well yes, it's a 30 year loan, they have to make their money". Well you are going to be shocked with this! Nope! It's not fair! Because of "the fractional reserve system".

Our banking system is a "Fractional reserve system". This means the banks are only required to carry 10% of their reserve and they are allowed to loan out 90%. So when you make a $500 deposit into your bank account they are now able to loan out $5,000 based on that $500 deposit. That is why 10% down is the magic number that will pretty much guarantee you a secured loan. With 20% down (they LOVE that!) you can have a credit score of 400, no job and buy a $20 million dollar mansion with 20% down. Think about it. If you give them 20% of 20 million dollars they can now loan out 40 million dollars to other people who WILL pay it back. And they've just stolen a 20 million dollar house for 2 million dollars.

But wait! It get's deeper!

They repo your home or car and auction it well below value. Let's say they get 10 million for it. Well, now another bank gives them 10 million dollars and from that 10 million they just added 100 million to their lending power.

See, in today's society of credit, you never actually take out the money. It doesn't even exist aside from the computer screen. You buy a house for $100,000, Bank Of America funds the home and gives it to Chase who is the lean holder. Now Chase has $1,000,000 of loaning power based on that. So Chase pays $100,000 of the loaning power to fund a home that Bank of America owns. So now Bank of America has an additional $1,000,000 loaning power. 

Fractional lending began in the early 1900's (in the United States anyway but it's an ancient scam) just before we were taken off of the gold standard in 1913 by bankers such as the Rothchilds and J.P. Morgans. It began as a "margin loan". The Federal Reserve was implemented and all gold was recalled under penalty of imprisonment and exchanged for useless "Federal Reserve Notes". If you look at a dollar bill before 1913 it says "redeemable in gold (or silver)" and after 1913 "this is legal tender". This means the only thing regulating the money is the amount in circulation.

But the Federal Reserve (which is about as Federal as Federal Express) not only supplies the money to the United States government but does so at INTEREST. So every dollar in circulation comes with a % of INTEREST that must be paid back to the Federal Reserve. In a central banking system there is and can NEVER be enough money in circulation to pay back the interest because where are we going to get the money to pay back the interest? We have to borrow more money from the Federal Reserve.

Back to margin loans. Everyone in the 20's seemed to be making money in the stock market and you can own $100 worth of stock with $10. But the catch was the loan could be called in at any time and had to be paid back within 24 hours. This resulted in the selling of the stock. And in 1929 Morgan, Rothchild and his buddies quietly exited the market and began calling in every single margin loan causing a panic.

As you probably know when a mass amount of stock is sold the value drops enormously. This allowed Morgan and his buddies to buy up rival banks at pennies on the dollar and caused a bank rush because people were afraid of losing their deposits to closing banks. And since there was only 10% of the reserve, the people were not able to get their deposits. So instead of increasing the money supply to help level off the playing field the Federal Reserve actually DECREASED the money supply and caused us to spiral into the greatest depression in history.

It was orchestrated with perfection "in the same way you would calculate a mathematical equation".

Benjamin Franklin said "If there is one specific reason for the American Revolution it would be the Kings refusal to allow the colonies to operate an honest money supply". Of course high taxes had something to contribute but the King outlawed the "Greenbacks" the colonies were using and forced them to borrow money from the Central bank of England, with each note attached a percentage of debt.

Thomas Jefferson said "If the people ever allow a central bank to control the money supple they will wake up homeless in the land their forefathers conquered".

And it's 100% true. 550,000 jobs lost in November. Foreclosures at an all time high and people getting kicked out of their homes because of the fraudulent credit system. With home loans, car loans etc. you are set up to FAIL. With credit cards you are set up to pay the minimum payment for 30 years and pay $30,000 on a $3,000 purchase.

Because of the "credit crunch" our interest rates went up to 27%. We pay around $800/month in INTEREST ALONE and about $200 in principal. It's a never ending cycle of debt.


Now the same thing that happened in 1929 is happening today. They orchestrated a panic in the stock market and put several companies and banks out of business. They get EIGHT AND A HALF TRILLION (YES TRILLION) dollars in "bail out money" and give each other bonuses, go on million dollar "team building retreats" and buy up rival banks, corporations etc. while you and I sit homeless in the country our forefathers conquered.

So they print 8.5 TRILLION out of thin air that the tax payers are obligated to pay back. Now they buy up foreclosed homes and SELL IT BACK TO US! They sell off our infrastructure to foreign corporations and turn highways paid for by the tax payers into TOLL ROADS.

I am a victim of foreclosure and I've never had a mortgage. I had a sheriff knock on my door one day and say I had 72 hours to vacate the home I was renting and paid up in rent on.

It's time for us to stop worrying why we are drowning in debt and start finding out the REASON! Why our homes are being stolen from under us.



End of Part 1.

I posted this post elsewhere and check out this response--how would you counter this (please provide irrefutable sources where it would be prudent if you have the time):

Quote
*the 3rd part of Zeitgiest Addendum is BS and capitalism-bashing with information that is factually incorrect, displaying a GROSS lack of understanding when it comes to markets

*credit is not slavery. It's debt...debt isn't slavery...it's voluntary. You pay it back and you're off the hook.

*the credit crunch didn't happen because of our fraudulent banking system. Probably wouldn't happened anyways because of bad legislation that made lenders give out loans to people who weren't qualified...and they had to lower their lending standards overall to comply with Congress, folks who didn't even have jobs were able to get houses...people were able to get houses with no money down, etc.

*banks don't lend out ALL reserves. They keep some on hand to pay unexpected costs. They do generally try to loan out as much as possible though so they can make profit from the interest charged on loans

*The problem with the Fed is NOT that it's private. If we had a truly federal central banking system, totally controlled by government, it would STILL be bad because the problem is not that the central bank is private. The problem is that the CENTRAL bank CENTRALLY PLANS the money supply. People need to get it in their heads that CENTRAL PLANNING is bad and is very difficult to make work, especially in a large nation like the USA. That's why we need to show folks that the government should not be trying to centrally plan the economy or the money supply.

Offline thnkfstpal

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Re: BANNED POST ON CREDITBOARDS.COM
« Reply #9 on: January 04, 2009, 01:30:47 AM »
yeah you messed up with the Whole Zeitgeist thing, you should have just mentioned Freedom to Fascism. see how his responses don't take on your "stronger" points in your article? he just glides right by them and attacks your weak points. Thus minimizing your impact on that board. Try and go under cover a bit more and don't reveal all the cards in your hand so quickly, then try posting mainstream news articles that support your facts.

You see he is revealing nothing, you are revealing everything and then he neutralizes you. MOVE ON, but learn from this failed "battle"


Offline JonTheSavage

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Re: BANNED POST ON CREDITBOARDS.COM
« Reply #10 on: January 05, 2009, 01:02:48 AM »
We should ask the mods to clean up all of the typos on the forum! Do a global spellcheck and select "Yes To All" to make it go faster!

If their DB is MySQL, like mine, it would crash & corrupt after about 5 minutes.

Offline h5mind

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Re: BANNED POST ON CREDITBOARDS.COM
« Reply #11 on: January 21, 2009, 01:11:35 AM »
Some of the simplest, clearest and (most importantly) 100% accurate arguments against fractional reserves and fiat currency are found in Ron Paul's best seller 'The Revolution, A Manifesto'.  Dr. Paul's advice, as always, gently leads citizens brainwashed by the media to a common sense understanding of why our current banking and monetary system is money suicide, and how to fix it.  Just for fun, ask the financial geniuses on creditboards.com where the constitution gives our government the right to endlessly print reserve notes (backed with nothing more than a promise to pay) rather than coin actual money, defined exclusively as silver or gold.  And why a dollar today is worth a nickel compared to 1913, when the illegal  Federal Reserve Act decoupled our 'money' from our gold. The answer is inflation, caused entirely by the overcreation of paper currency.

Offline Ratiocinator

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Re: BANNED POST ON CREDITBOARDS.COM
« Reply #12 on: January 21, 2009, 07:38:07 AM »
I, too, was banned from CreditBoards. All I tried to do was post my 'The Post-Money Paradise' article in their general section.

One would think such an article would be of interest, at least to some, on a board dedicated to the disease called money.

It is just another fascist Internet mini-state, as so many forums are.

Come back Harris. Please?

Offline Byrne0ut

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Re: BANNED POST ON CREDITBOARDS.COM
« Reply #13 on: January 23, 2009, 04:32:00 AM »
great article, I made it sticky. I did correct you on the point that we went off the gold standard in 1913 at the end of the article.  But other than that snafu it was a bang up article.

Damascus

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Re: How the Fed works. A must Read
« Reply #14 on: January 31, 2009, 09:25:54 PM »
Two other great movies that can be mentioned are "debt as money" and "In debt we trust".

Offline laptop-power-battery

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Re: How the Fed works. A must Read
« Reply #15 on: February 01, 2009, 02:43:58 AM »
Good post Chris. Looking forward to part 3

asus L3800 laptop li ion battery

Offline Lannister

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Re: How the Fed works. A must Read
« Reply #16 on: May 21, 2009, 04:20:30 AM »
"*the 3rd part of Zeitgiest Addendum is BS and capitalism-bashing with information that is factually incorrect, displaying a GROSS lack of understanding when it comes to markets

*credit is not slavery. It's debt...debt isn't slavery...it's voluntary. You pay it back and you're off the hook.

*the credit crunch didn't happen because of our fraudulent banking system. Probably wouldn't happened anyways because of bad legislation that made lenders give out loans to people who weren't qualified...and they had to lower their lending standards overall to comply with Congress, folks who didn't even have jobs were able to get houses...people were able to get houses with no money down, etc.

*banks don't lend out ALL reserves. They keep some on hand to pay unexpected costs. They do generally try to loan out as much as possible though so they can make profit from the interest charged on loans

*The problem with the Fed is NOT that it's private. If we had a truly federal central banking system, totally controlled by government, it would STILL be bad because the problem is not that the central bank is private. The problem is that the CENTRAL bank CENTRALLY PLANS the money supply. People need to get it in their heads that CENTRAL PLANNING is bad and is very difficult to make work, especially in a large nation like the USA. That's why we need to show folks that the government should not be trying to centrally plan the economy or the money supply."

Personally I would ignore it.  The guy obviously doesn't have a clue(deliberately or through ignorance).  Just move on with your points in that thread.  Anyone with half a brain will understand what you're talking about.

Offline Geolibertarian

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Re: How the Fed works. A must Read
« Reply #17 on: May 21, 2009, 04:43:51 AM »
Quote
*credit is not slavery. It's debt...debt isn't slavery...

Yes it is:

       http://video.google.com/videoplay?docid=2464321382114136843

Quote
it's voluntary.

Wrong again. Even if a person doesn't take out a bank loan, he is still forced to pay usurious interest both through the money taken from him via the income tax to service the national debt and through the silent incorporation of interest costs into the selling price of virtually everything he buys (since higher prices are the only way indebted business owners can capture the necessary portion of other people's loan principal to pay the interest they owe).

Since basic necessities cost money, the people as a whole must be indebted to the private banking system, because bank loans are the only way this money is allowed to come into circulation in the first place. (No debt, no money. No money, no economy.) Anyone who calls that "voluntary" is either deeply delusional or a bald-faced liar.

Quote
*the credit crunch didn't happen because of our fraudulent banking system.

Anyone stupid enough to believe that quite frankly deserves to be economically ass-raped by the parasitic international bankers.
"Abolish all taxation save that upon land values." -- Henry George

"If our nation can issue a dollar bond, it can issue a dollar bill." -- Thomas Edison

http://schalkenbach.org
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http://forum.prisonplanet.com/index.php?topic=203330.0

Offline Agnosticus

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Re: How the Fed works. A must Read
« Reply #18 on: September 15, 2009, 03:30:19 PM »
This is a bit off-topic, but since you mentioned Zeitgeist, I want to have a comment on that.

I haven't watched it fully, but I've seen the first part and I think, in the light of the present evidence, it's big bunch of disinfo. I mean really, what evidence do they refer to? None, because they're just making statements and people are believing that stuff.

Like for example, Krishna.
"Born of a virgin" - false, because Krishna-myth tells that he's the eight son.
"Star in the east" - which source states this?
"Performed miracles" - What a surprise
"Resurrected" - Again, which source?

At least wikipedia has some sources:
http://en.wikipedia.org/wiki/Krishna

This part of the document is more about trying to destroy religion by
promoting un-scientific ideas as facts. And it's working. I, at first,
was very compelled by the ideas, until I researched them.

Don't buy everything people are trying to sell you. Check the sources!

Offline scarecrow2009

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Re: How the Fed works. A must Read
« Reply #19 on: October 15, 2009, 09:20:20 PM »
Very well written. Thanks for sharing it here.

Offline Farn

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Re: How the Fed works. A must Read
« Reply #20 on: November 29, 2009, 10:19:12 AM »
By the way, did everyone see Bill Still's 1995 documentary "The Money Masters"  (3-1/2 hrs.).  This may be the seminal documentary of the 90s, if anyone remembers that far back.  Better than Jones and (even) Griffin's docs when it comes to cool, scholarly documentary filmmaking.
Check it out (again?) here; a must see:

  http://video.google.com/videoplay?docid=6076118677860424204#

Still's new film, "The Secret of Oz" is now out.

Offline Freeski

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Re: How the Fed works. A must Read
« Reply #21 on: November 29, 2009, 11:45:24 AM »
By the way, did everyone see Bill Still's 1995 documentary "The Money Masters"  (3-1/2 hrs.).  This may be the seminal documentary of the 90s, if anyone remembers that far back.  Better than Jones and (even) Griffin's docs when it comes to cool, scholarly documentary filmmaking.
Check it out (again?) here; a must see:

  http://video.google.com/videoplay?docid=6076118677860424204#

Still's new film, "The Secret of Oz" is now out.

Good collection of financial films, including The Money Masters, here: http://forum.prisonplanet.com/index.php?topic=46904.0
"He who passively accepts evil is as much involved in it as he who helps to perpetrate it. He who accepts evil without protesting against it is really cooperating with it." Martin Luther King, Jr.

Offline Keri

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Re: How the Fed works. A must Read
« Reply #22 on: December 01, 2009, 04:46:47 AM »
Hey that's a great post!  Just about everyone on this forum knows how that the Fed is a totally criminal banking cartel, but also just about everyone has friends and family that think you're crazy when you speak the truth!  For this reason, I have composed the following letter that I email to those loved ones who just can't get it:

Dear Citizen who thinks that you own the Federal Reserve,

I know this is gonna hurt, but, I'm sorry--you don't own the Federal Reserve. None of it. Not one little, tiny bit. In fact, not only do you not own it, but instead, you owe it. And me too. As in, owe it interest--6% to be exact--on every dollar that it makes up out of thin air and sells your government and people. The US government has no stock in the FRS or any of its banks, and no shareholder status. Zero. In fact, senators and representatives are expressly prohibited from holding office in the Federal Reserve System (FRS Act Section 4, paragraph 13). Again, the US government and the US people have zero ownership interest in the FRS. My lovely friend, I know that's hard to take, but you don't have to believe me.  No, indeed, because here it is directly from the Federal Reserve Act, Section 2, paragraph 10. You can read for yourself at: http://www.federalreserve.gov/aboutthefed/section2.htm. Here it goes:

"As originally enacted the Federal Reserve Act provided for a Reserve Bank Organization Committee to have charge of the initial steps in organizing the Federal Reserve System and this Committee was authorized to allot Federal Reserve Bank stock to the United States in the event that subscriptions to such stock by banks and by the public were inadequate. However, subscriptions by member banks were adequate and there was no necessity or authority for the allocation of any stock to the United States. Accordingly, [this paragraph] is now of no practical effect and may be regarded as obsolete."]"

All stock in the FRS was allocated to banks, none to the government. Also, government officials are expressly prohibited from the Board of the FRS, including senators and representatives (Section 4), and also (after 1935) the Secretary of the Treasury and Comptroller of the Currency (Section 10). Some people say that the FRS is a "non-profit" bank, and that it "gives" back all its surplus to the Treasury. Well, no: the Federal Reserve System also is NOT a "non-profit" organization, either. The FRS is made of 12 district branches, each of which is wholly owned by the member banks of each district. You can easily learn about this by reading the FRS Act of 1913 from the FR's website, and then you'll actually have done something that your own representatives and senators probably haven't even bothered to do (unless you rep is Ron Paul or Dennis Kucinich, or your senator is Bernie Sanders).

Additionally, my dear friend, when you do this, you'll learn that only national association (NA) banks and for-profit banks can even attempt to buy into the FRS or purchase stock in the District bank of their specific regional area. This means that state-chartered banks, which are banks operating in a single state under the authority of the state, supervised by the Comptroller of the Currency, must specially apply to the Board of the FRS to buy stock (Section 9), and the Board may deny them at their will. Most state banks only gain entry to the FRS after having mergered with a member NA, and all national association (NA) banks must be FRS members. In addition to this, credit unions of any size are prohibited from joining the Federal Reserve System, and only have access to the Fed funds window in emergency situations, and even then only at the will of the Board.  In case you don't know, credit unions are non-profit banks, as they are co-operatives owned by the account holders. So, beautiful dear loved one, the real non-profit "banks" are literally prohibited from the FRS. No, dear, don't cry.

Oh my sweet friend, if you need more proof yet and have nothing else to do on a cold, dark knight, read the FRS Act, which is available from the above FRS link. You'll also see Section 4, paragraphs 20-22, which detail the fact that the Chairman, Board, and staff ("staff" including the private "police" authorized in Section 11, paragraph Q) are paid not by the government, but by the member banks of the privately-owned Federal Reserve district stockholders. They are not "public servants," and they are not paid by the government or the tax-payer (directly, that is, as we are ALL paying for ALL of this!). Oh no, my dear love, you're crying again.  Wipe away your tears, dear, and go check out Section 16, paragraph 10, and you'll also see how the FRS in fact must pay the Bureau of Engraving (which is a government body) to make the notes for them, and then the notes become the property of the FRS and the "obligation" of the US, and the Federal Reserve sells them back to US through the advances to its very own member banks. And be ware, my love, as some confused and mistaken people will say that the "left-over" is put back in the Treasury. Love, while this is certainly inventive, it is also totally not true. Directly from Section 7, Subsection A, paragraph 1:

"a.) After all necessary expenses of a Federal reserve bank have been paid or provided for, the stockholders of the bank shall be entitled to receive an annual dividend of 6 percent on paid-in capital stock."

It is true, dear, that every year the FRS "gives back" a small amount to the Treasury, but this money was created up by the FRS itself, and, as per section 7, the money is placed "on account" with the Treasury to settle the "debt" that the Treasury has --has with the FRS, because the FRS is making up money and selling it to Treasury. The Treasury has no authority over the issuance of Federal Reserve notes. Since you probably don't believe me saying that in your fragile state, here it is from the FRS Act, Section 16, with my emphasis so you can hear me:

"Federal reserve notes, TO BE ISSUED AT THE DISCRETION OF THE Board of Governors of the Federal Reserve System for the purpose of MAKING ADVANCES TO Federal reserve banks through the Federal reserve agents as hereinafter set forth and for NO OTHER PURPOSE, are hereby authorized."

You've stopped crying--are you getting mad now? Perhaps enraged, even?  Yes, love, that is a common response.  But unfortunately, that's not all: stop shaking, and check out Section 7, Subsection (c):

“Federal reserve banks, including the capital stock and surplus therein, and the income derived therefrom SHALL BE EXEMPT from Federal, State, and local taxation, except taxes upon real estate.”

So, my beloved one so angry and distraught, the profits of the FRS are non-taxable as well. Again, the FRS banks pays no taxes on their profits, and the member banks pay no taxes on their dividends payments. As for those member banks--in addition to the tax-free 6% post-expenses dividend, the member banks are also currently recieving interest on their deposits with the FRS, as per the TARP legistation of 2008. Yes, my dear, as you sit here steaming mad and the bankster criminals, they are getting interest on their made-up money on deposit with their district Bank, being charging it back as a liability to us, the US taxpayers. That was unprecendented until last October, of course, but indeed, member banks are now getting PAID to hold money in the system, "money" of course which is being produced from thin air. Yes, I said "thin air," cupcake.  Don't believe me about the "thin air" part, either? Well, this might interest you, directly from the US Treasury's website at http://www.ustreas.gov/education/faq/currency/legal-tender.shtml :

"Federal Reserve notes are not redeemable in gold, silver or any other commodity, and receive no backing by anything. This has been the case since 1933. The notes have no value for themselves, but for what they will buy. In another sense, because they are legal tender, Federal Reserve notes are "backed" by all the goods and services in the economy."

No, love, please don't use your worthless Federal Reserve notes to wipe your eyes and blow your nose--they are flithy!  Instead, take this much more valuable Kleenex, and finally, consider the above against the rest of Section 16, Subsection 1 of the Federal Reserve Act, the first part of which I already quoted:

"Federal reserve notes, to be issued at the discretion of the Board of Governors of the Federal Reserve System for the purpose of making advances to Federal reserve banks through the Federal reserve agents as hereinafter set forth and for no other purpose, are hereby authorized. The said NOTES SHALL BECOME OBLIGATIONS of the United States and shall be receivable by all national and member banks and Federal reserve banks and for all taxes, customs, and other public dues. They shall be redeemed in lawful money on demand at the Treasury Department of the United States, in the city of Washington, District of Columbia, or at any Federal Reserve bank."

Of course, my ever dearest tender-hearted loved one, you cannot even get "lawful money" for a Federal Reserve note that you might present to a FRS bank, because there is no more "lawful money." Oh my sweetness, I am sorry to have to break it you, but the Federal Reserve is a totally criminal bankster operation run by supranational banks, and now you know for certain.  Sucks, doesn't it?  Now clean yourself up and go tell everyone else.

Offline DireWolf

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Re: How the Fed works. A must Read
« Reply #23 on: March 25, 2010, 02:24:43 AM »
Please allow me to simplify the situation - Might Makes RIGHT - plain and simple.

If you have the ability to bully or scare and enough people fearfully submit, you make any and all the rules you want, slap a few numbers and letters to them call them "LAW" and you are king.

Mystery solved.
Freedom and Liberty, or slavery and death, your choice, choose wisely.

Offline pachelbeld

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Re: How the Fed works. A must Read
« Reply #24 on: April 02, 2010, 03:20:37 PM »
There is a lot of talk about money.  I would like to a chilling possibility.
 1. Many ads are asking you to trade in your gold, silver, precious metals.  Others are raving about how the great heights that gold has soared to.  You trade in your jewelry for money.  The dollar falls to nothing.  You have no solid currency. (gold, silver.)  You are broke and the people that got your gold, silver are in possession of the only real commodity.  The gap between the rich and the poor widen.  You are poorer, while big business and government are wealthier with more control over the only real commodity. 
2.  You buy, let's say 10 ounces of gold for $1,100 per ounce.  One of these days the gold goes to $500 dollars and ounce.  (theoretically).  You go to trade in the gold for cash.  Suddenly you only get $5,000 for the 10 ounces of gold you bought for $11,000.  You come short $6,000.  You lose $6,000 of you original wealth.  Meanwhile the dollar has crashed to nothing.  So the money you do get from it is useless.   Again you are poorer.  (BROKE).  Big business and government are wealthier.  (And they control all the real 'wealth').  That's gold.  Silver.  Etc.
3.  Then BIG government makes a law to make gold and silver, etc a black market commodity.  Then if you have gold, silver, etc.  you are a criminal.  Hmmm.  So then you would have to go to government to get wealth.  (ALL JOBS WILL THEN BE GOVERNMENT JOBS.)  Restaurants, manufacturing, entertainment, grocery stores, etc.  All business will be controlled by Big Government for they alone own the only currency available worldwide.   (And if government issues a money card to put 'points' on, then they can still add or subtract your job earnings on that card, WITHOUT YOUR PERMISSION.)  And since government own all industries, then Government also decides how much you earn.  Hmmm.
I have heard that government would like to put gold and silver on the black market because they cannot control it.  That is what brought to my mind this possible scenario.  I only scratched the surface of things that could happen in each of these three possibilities.  And I am sure that there are other possibilities.  Any commints?

Offline Rebelitarian

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Re: How the Fed works. A must Read
« Reply #25 on: April 02, 2010, 04:07:27 PM »

Offline Freeski

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Re: How the Fed works. A must Read
« Reply #26 on: July 25, 2010, 10:25:26 PM »
Good thread.
"He who passively accepts evil is as much involved in it as he who helps to perpetrate it. He who accepts evil without protesting against it is really cooperating with it." Martin Luther King, Jr.