Nexus - 0601 - New Times Magazine-pages

Page Content (OCR)

creates all of our money with a parallel amount of interest-bearing debt. That's why we can never get out of debt. And that's why a deep Depression is a certainty for most US citizens, whether caused suddenly in a severe economic crash or gradually through continued relentless inflation. The Fed is creating it to enrich its private stockholders—just as it deliberately created the Great Depression of the 1930s. The Federal Reserve headquarters is in Washington, DC. It sits on a very impressive address on Constitution Avenue, right across from the Lincoln Memorial. But is it 'Federal'? Is it really part of the United States Government? Well, what we are about to show you is that there is nothing ‘Federal’ about the Federal Reserve—and there are no reserves. The name is a deception created before the Federal Reserve Act was passed in 1913 to make Americans think that America's new central bank operates in the public interest. The truth is that the Fed is a private (or, at best, quasi-public) bank owned by private national banks, which are the stockhold- ers, and run for their private profit. As economist Henry Pasquet noted: That's exactly correct; the Fed is a privately owned, for-profit corporation which has no reserves—at least no reserves to back up the Federal Reserve notes which are our common currency. creates all of our money with a parallel amount of interest-bearing US Government, check your local telephone book. It's not listed debt. That's why we can never get out of debt. And that's why a __ in the 'government' blue pages. It is correctly listed in the ‘busi- deep Depression is a certainty for most US citizens, whether ness' white pages, right next to Federal Express, another private caused suddenly in a severe economic crash or gradually through company. But more directly, US courts have ruled that the Fed is continued relentless inflation. The Fed is creating it to enrich its a special form of private corporation. private stockholders—just as it deliberately created the Great Let's take a look at the Fed shareholders. According to Depression of the 1930s. researcher Eric Samuelson, as of November 1997 the Federal The Federal Reserve headquarters is in Washington, DC. It sits Reserve Bank of New York (which completely dominates the on a very impressive address on Constitution Avenue, right across other 11 branches through stock ownership, control and influence, from the Lincoln Memorial. But is it 'Federal'? Is it really partof | having the only permanent voting seat on the Federal Open the United States Government? Market Committee and handling all open market bond transac- Well, what we are about to show you is that there is nothing tions), has 19,752,655 shares outstanding and is majority-owned ‘Federal’ about the Federal Reserve—and there are no reserves. by two banks: Chase Manhattan bank (now merged with The name is a deception created before the Federal Reserve Act Chemical Bank), with 6,389,445 shares or 32.35 per cent; and was passed in 1913 to make Americans think that America's new Citibank, NA, with 4,051,851 shares or 20.51 per cent. Together, central bank operates in the public interest. those two banks own 10,441,295 shares or 52.86 per cent—which The truth is that the Fed is a private (or, at best, quasi-public) is majority control. bank owned by private national banks, which are the stockhold- While majority ownership conclusively demonstrates effective ers, and run for their private profit. control, it is not critical to control—which is often exercised in As economist Henry Pasquet noted: large, publicly traded corporations by blocks of as little as 25 per That's exactly correct; the Fed is a privately owned, for-profit cent, and even two per cent when the other owners hold smaller corporation which has no reserves—at least no reserves to back blocks. up the Federal Reserve notes which are our common currency. One of the most outspoken critics of the Fed in Congress was Louis T. McFadden (R-PA), the Chairman of the House Banking The Federal Reserve Act was railroaded through a carefully and Currency Committee during the Great Depression years. In prepared Congressional Conference 1932 he said: Committee meeting, scheduled dur- We have in this country one of the ing the unlikely hours of 1.30 am to most corrupt institutions the world 4.30 am (when most members were has ever known. I refer to the sleeping) on Monday 22 December . Federal Reserve Board... This evil 1913, at which 20 to 40 substantial But more directly, US courts institution has impoverished...the differences in the House and Senate . people of the United States...and versions were supposedly described, have ruled that the Fed Isa has practically bankrupted our deliberated upon, debated, reconciled special form of private government. It has done this and voted upon in a near-miraculous . through...the corrupt practices of four-and-a-half to nine minutes per corporation. the moneyed vultures who item, at that late hour. control it. At 4.30 am, a prepared report of this Committee was handed to the Senator Barry Goldwater was a fre- printers. Senator Bristow of Kansas, the Republican leader, stated on the quent critic of the Fed: Most Americans have no real Congressional Record that the Conference Committee had met understanding of the operation of the international money- without notifying them, and that Republicans were not present lenders... The accounts of the Federal Reserve System have and were given no opportunity either to read or sign the never been audited. It operates outside the control of Congress Conference Committee report. The Conference report is normally and...manipulates the credit of the United States. read on the Senate floor. The Republicans did not even see the report. Some senators stated on the floor of the Senate that they What one has to understand is that from the day the had no knowledge of the contents of the Bill. Constitution was adopted, right up to today, the folks who profit At 6.02 pm on 23 December, when many members had already from privately owned central banks like the Fed, or, as President left the Capitol for the Christmas holiday, the very same day that Madison called them, 'the Money Changers’, have fought a run- the Bill was hurried through the House and Senate, President ning battle for control over who gets to issue America's money. Woodrow Wilson signed the Federal Reserve Act of 1913 into Why is who issues the money so important? Think of money as law. just another commodity. If you have a monopoly on a commodity The Act transferred control of the money supply of the United that everyone needs, everyone wants and nobody has enough of, States from Congress to a private banking elite. It is not surpris- there are lots of ways to make a profit and also exert tremendous ing that a bill granting a few national bankers a private money political influence. That's what this battle is all about. monopoly was passed in such a corrupted manner. Throughout the history of the United States, the money power As author Anthony C. Sutton noted: as gone back and forth between Congress and some sort of pri- The Federal Reserve System is a legal private monopoly of the vately owned central bank. The American people fought off four money supply, operated for the benefit of the few under the rivately owned central banks before succumbing to the first stage guise of protecting and promoting the public intent. of a fifth privately owned central bank during a time of national v ot the Oil War But more directly, US courts have ruled that the Fed isa special form of private corporation. What one has to understand is that from the day the Constitution was adopted, right up to today, the folks who profit rom privately owned central banks like the Fed, or, as President Madison called them, 'the Money Changers’, have fought a run- ning battle for control over who gets to issue America's money. Why is who issues the money so important? Think of money as just another commodity. If you have a monopoly on a commodity that everyone needs, everyone wants and nobody has enough of, there are lots of ways to make a profit and also exert tremendous political influence. That's what this battle is all about. Throughout the history of the United States, the money power as gone back and forth between Congress and some sort of pri- vately owned central bank. The American people fought off four rivately owned central banks before succumbing to the first stage of a fifth privately owned central bank during a time of national weakness: the Civil War. The founding fathers knew the perils of a privately owned cen- 12 = NEXUS If there's any doubt whether the Federal Reserve is a part of the DECEMBER 1998 - JANUARY 1999