The Purpose of the Federal Reserve System
In 1913 President Woodrow Wilson signed the Federal Reserve Act into law, thereby creating the Federal Reserve System we are familiar with today. The Act represented the most090-161 comprehensive overhaul of the American banking system since the Civil War. While officially touted as an act which "helped safeguard America's financial institutions," it was, in truth, a significant seizure of control by a small minority of wealthy individuals over the American people.
Contrary to popular belief, the Federal Reserve is not a government agency - it is a monopolistic set of 12 special purpose, privately owned banks. The Federal Reserve System, or "Fed" was purported at its inception to be a means of providing a safer, more flexible banking and monetary system. However, less than three years after signing the Act in to law, President Wilson deeply lamented his decision:I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation is controlled by its system of credit. Our system of credit is concentrated. The growth of the nation, therefore, and all our activities are in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated Governments in the civilized world. No longer a Government by free opinion, no longer a Government by conviction and the vote of the majority, but a Government by the opinion and duress of a small group of dominant men.
- Woodrow Wilson, 1916
The Fed prints notes which have been declared by the government to be legal tender. The notes are backed by nothing more than the full faith and credit of the US Government. If the government needs more cash for latest spending spree, the Fed prints it up - but not without an associated cost. After charging the government the cost of printing, the Fed "loans" the notes to the government. The government pays an enormous amount of interest each year on its use of the notes. Much of what we pay each year in personal and corporate income taxes goes to the Fed as an interest payment.
The Fed controls the 090-075amount of script circulating in the economy, either adding to or removing from the supply. The Fed controls the interest rate the government pays on its debts and thus indirectly controls the interest rate companies and individuals pay for their borrowing. The Fed thereby has a very direct influence on the rate of inflation - or the rate at which the script in your pocket loses its purchasing power. The Fed, therefore, and not the federal government, controls the US economy and holds the most influence in the world economy.
The script you have in your pocket is not money, even though it is used to purchase goods and services and used to settle all manner of debts. The script in your pocket is a letter of credit between the US federal government (as debtor) and the Federal Reserve System (as creditor) and is used as a means to prevent common citizens from accruing wealth, thereby ensuring that they work hard all the days of their productive years.
Sound like a conspiracy theory against the banking industry? Perhaps it is.... But consider for a moment how fundamental to our daily lives, our hopes, and our plans is the concept 090-552of wealth and value. Consider the power creditors have historically had over debtors. Consider, too, the worldview of the founders of our modern banking system, put so eloquently by Mayer Amschel Rothschild, (1744 - 1812) founder of the Rothschild Banking Cartel of Europe:
Give me control of a nation's money and I care not who makes the laws.
Contrary to popular belief, the Federal Reserve is not a government agency - it is a monopolistic set of 12 special purpose, privately owned banks. The Federal Reserve System, or "Fed" was purported at its inception to be a means of providing a safer, more flexible banking and monetary system. However, less than three years after signing the Act in to law, President Wilson deeply lamented his decision:I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation is controlled by its system of credit. Our system of credit is concentrated. The growth of the nation, therefore, and all our activities are in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated Governments in the civilized world. No longer a Government by free opinion, no longer a Government by conviction and the vote of the majority, but a Government by the opinion and duress of a small group of dominant men.
- Woodrow Wilson, 1916
The Fed prints notes which have been declared by the government to be legal tender. The notes are backed by nothing more than the full faith and credit of the US Government. If the government needs more cash for latest spending spree, the Fed prints it up - but not without an associated cost. After charging the government the cost of printing, the Fed "loans" the notes to the government. The government pays an enormous amount of interest each year on its use of the notes. Much of what we pay each year in personal and corporate income taxes goes to the Fed as an interest payment.
The Fed controls the 090-075amount of script circulating in the economy, either adding to or removing from the supply. The Fed controls the interest rate the government pays on its debts and thus indirectly controls the interest rate companies and individuals pay for their borrowing. The Fed thereby has a very direct influence on the rate of inflation - or the rate at which the script in your pocket loses its purchasing power. The Fed, therefore, and not the federal government, controls the US economy and holds the most influence in the world economy.
The script you have in your pocket is not money, even though it is used to purchase goods and services and used to settle all manner of debts. The script in your pocket is a letter of credit between the US federal government (as debtor) and the Federal Reserve System (as creditor) and is used as a means to prevent common citizens from accruing wealth, thereby ensuring that they work hard all the days of their productive years.
Sound like a conspiracy theory against the banking industry? Perhaps it is.... But consider for a moment how fundamental to our daily lives, our hopes, and our plans is the concept 090-552of wealth and value. Consider the power creditors have historically had over debtors. Consider, too, the worldview of the founders of our modern banking system, put so eloquently by Mayer Amschel Rothschild, (1744 - 1812) founder of the Rothschild Banking Cartel of Europe:
Give me control of a nation's money and I care not who makes the laws.
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