Federal Reserve Bank
Federal Reserve Bank Corruption Introduction The Federal Reserve has been subject for many conspiracy theories. By why is that so? It is mainly because it has power. If you ask most people they will tell you that the Federal Reserve is the place where the American dollars are made. The US dollar is written the Federal Reserve Note right on it. Anyone who controls the money supply has a lot of power. And the Federal Reserve does exactly that. Maybe more power than anyone else. One for sure is that wherever there is power, there is also one or several conspiracy theories about the sinister foundations of that power. The Federal Reserve is no exception. Creation The Federal Reserve was created as a result of the 1913’s Federal Reserve Act. Also, there is an early version of the Federal Reserve Act which was drafted in 1910 on Jekyll Island, Georgia by Republican Senator Nelson Aldrich, chairman of the National Monetary Commission and several Wall Street bankers. The 1913 act intended to improve public oversight and weaken the influence of the New York banking establishment. The Federal Reserve has never been audited Critics have pointed to the fact the Federal Reserve lacks transparency and has never been audited. This indeed serves as proof that the fed is corrupt. This shows that the Federal Reserve lacks transparency and it is hiding something shady. However, it is said that the Board of Directors does get audited, but the banks that comprise the Federal Reserve System have never been audited. Majority of Americans believe that the system should be held more accountable, or it should be abolished. Some people feel that the public should have a right to know what goes on in the Federal Open Market Committee (FOMC) meetings. A scheme founded by a secret group of bankers in 1910 This is one of the most famous Federal Reserve conspiracies. A conspiracy book called The Creature from Jekyll Island by G. Edward Griffin alleges that a group of wealthy bankers decided to join together to control the entire economy rather than just keep fighting among themselves. The meeting was successful and together they were able to push the Federal Reserve Act through Congress in 1913. Rothschild banking family Some people believe that the Federal Reserve is a tool of the Vatican and they also tend to believe that the Catholic Church is controlled by Europe’s Rothschild banking family. This family has been one of the wealthiest families in the world for 200 years now. However, one biggest hole about this theory is that the Rothschilds do not own any of the Federal Reserve banks. Finances wars G. Edward Griffin argued in his book Creature from Jekyll Island that without the existence of the fiat currency, most wars of the past 200 years would only have been petty skirmishes rather than full-blown bloodbaths. The Rothschild banking theories argue that the Rothschilds have profited greatly by financing European wars since the early 1800s. Bankers have evidence that indeed, they financed wars for centuries. They funded the Nazis and helped fund the Russian Revolution which was supposed to be completely anti-capitalist and thus anti-banker. The Great Depression In 1929, just 16 years after the Federal Reserve Act was passed, the greatest economic depression in US history happened. It was stated that the Great Depression was exacerbated by the Fed by pursuing an erroneously restrictive monetary policy. After the crash of the stock market in 1929, the Federal Reserve continued with its decrease in money supply and rejected calls to save banks that were struggling with bank runs. Before the creation of the Federal Reserve, the banking system had faced periodic crises and dealt with them by suspending the convertibility of deposits into currency. In 1907, the banking system nearly collapsed and there was successful intervention by an ad-hoc collation assembled by J.P. Morgan. In the monetarists' view, the Great Depression was caused by the fall of the money supply. The Federal Reserve allowed the money supply to keep falling because of the incapable and poor leadership. Milton Friedman ideally stated that would prefer to abolish the Federal Reserve and replace it with a computer. Critics argue that the Great Depression was entirely intentional by the Fed. It creates booms and burst to make profits from both sides. Unconstitutional Some critics of the Federal Reserve claim that the US constitution solely reserves the right of controlling money supply to Congress. They allege the Federal Reserve which has the power to control the money supply is indeed unconstitutional. The Federal Reserve controls monetary policy whereby it decides how many dollars should circulate through the public. Therefore, if it was the institution that printed money, it would be absolutely unconstitutional. Policies The Federal Reserve has always been criticized for not achieving its goals of greater stability and low inflation. It is for that reason that there are several proposed changes such as advocating for different policy rules and restructuring of the system itself. The Federal Reserve has a poor performance and its critics believe it should be abolished. Milton Friedman indeed believed that the Federal Reserve should ultimately be replaced with a computer program. Not part of the Federal Government There is a theory that points out that you can’t find “Federal Reserve” under “Government” in the phone book. You have to look in the “Business” section instead. By calling it “Federal Reserve” is intended to deceive people into believing that is it part of the government and is there democratically, rather what it really is – a sinister group of private bankers who wish to control governments in the world through the control of their money supply. The government appoints a Federal Reserve Board of Directors who report to the Congress at least once every year, however, the twelve banks that comprise the US Federal Reserve are indeed private. Therefore, you can read a lot from that. The assassination of John F. Kennedy A conspiracy theory claims that the Federal Reserve arranged for the assassination of John f. Kennedy. It is said that JFK knew some secret information about how the Fed is the US shadow government and gets far too much power for any established democracy. Therefore, it is alleged that the Federal Reserve assassinated him before he could give out his plan to abolish the Fed. This theory leans on the executive order JFK signed which involved the issuance of silver certificates which are said to be proof that he wanted to phase out Federal Reserve Notes. According to others, the executive order in question was only a temporary move and that JFK always looked for ways to strengthen the Federal Reserve. Inflation Policy A supposed core function of the Federal Reserve is to maintain a low level of inflation, but its policies have exacerbated inflation. This happens when the Fed creates too much fiat money which is indeed backed by nothing. This policy of money creation by the Federal Reserve was referred to as “legalized counterfeiting” by one critic of the Fed. To obtain money For instance, if the Federal Government needs $1 billion more, after collecting the taxes, to continue financing its projects and since it does not have the money and the Congress has given away its authority to create it, the government must go to the Federal Reserve. The Fed is now in charge of creating the money, and it does not just give its money away. The bankers that make up the Federal Reserve are willing to give $1 billion in money or credit to the Federal Government only in exchange for the Government’s agreement to pay it back and with interest. The Congress will then authorize the Treasury to print $1 billion US bonds which are delivered to the Federal Reserve. The Federal Reserve then pays the cost of printing the $1 billion which just $1,000 and makes the exchange. The government now has the money to continue financing its projects. But the results of the transaction are a burden on the people because for the $1 billion the government has received it is now indebted the people to the Federal Reserve bankers for $1 billion, on which they have to pay with interest. Moreover, on the $1 billion that the Fed received in US bonds from the transaction, it is allowed to create another $15 billion in new credit to lend to states, businesses and individuals. So if you add the original $1 billion, they will have $16 billion of created credit given out in loans which are paid back with interest, and their only cost is $1,000 which was spent for printing the original $1 billion lent to the government. Unbelievable Corruption The bankers that make up the Federal Reserve are hidden controllers of countries, they purposely instigate wars, finance both sides of the same war and get people afraid of going into billions of dollars into debt for national defence. Nevertheless, they fund communism and then turn around and have foreign aid to end the communism they funded. They don’t care about the tens of thousands of people who are killed, and the ones who are crippled and morally corrupted from war. It doesn’t matter who wins or loses the war, as long as all the countries involved are in debt to the bankers.