The Federal Reserve: Its Origins, History, And Current Strategy
by Wayne N. Krautkramer
Few perceive the truth about the Federal Reserve. Rare are those who know its origins. It is right in front of us,
but our relative ignorance of economics and history is their protection. A quick history lesson is in order.
14, 1066, AD., King William I (the Conqueror) founded the English monarchy. The Corporation was created by William in 1067
AD. to facilitate trade, and assure the continuation of the wealth of the monarchy. The City of London's legal name is The
Corporation of the City of London. The City of London has unique political and economic privileges that do not apply to Greater
London, or anywhere else in the British realm. The "City" even has its own police force that is sovereign.
of England was granted a royal charter on July 27, 1694, by William III to regularize the monarchy's finances. This scheme
was invented by a Scot promoter named William Paterson. The scheme was to create a bank with a "fund for perpetual interest".
Fractional reserve banking was created, along with the radical monetary concept of a "monopoly" bank which would create money
for loans that would never be repaid. A perpetual money machine for the monarchy was born. The permanent National Debt was
born. The Bank of England would finance the emerging empire from its headquarters in the City of London. Never again would
the lack of money, or liquidity, hamper the British empire under normal economic conditions. Conveniently, the monarchy also
controls the City of London. This assures that the heart of the economic machine will always be protected.
States fought a hard and expensive war against England in 1776 to achieve sovereignty. That included the right to have her
own currency, control her own tax policies, and the avoidance of involvement in the affairs of other nations.
War of 1812 United States Declares War on Great Britain
The United States declared War on Great Britain on June
12, 1812. The war was declared as a result of long simmering disputes with Great Britain. The central dispute surrounded the
impressment of American soldiers by the British. The British had previously attacked the USS Chesapeake and nearly caused
a war two year earlier. In addition, disputes continued with Great Britain over the Northwest Territories and the border with
Canada. Finally, the attempts of Great Britain to impose a blockade on France during the Napoleonic Wars was a constant source
of conflict with the United States.
The US did everything in their power to remove British influence and control from
this continent. Again and again we defeated all attempts to allow our money to be controlled by a National (Central) bank.
When Central banks were established, we abolished them. Times changed, and Thomas Woodrow Wilson was elected. The intellectual
who wanted the League of Nations (the progenitor of the United Nations) was elected. Under his leadership, we received the
Federal Reserve, and the Sixteenth Amendment (Income Tax) shackling us into slavery to the British Crown forever. In 1917,
Wilson made the world safe for democracy by plunging the US into World War I
On December 23, 1913, the Federal Reserve
Act, also known as the Glass-Owen Bill, was passed. The Republican controlled Senate rammed the bill through when many members
of the US Congress were home for the holiday. The President, Dr. Thomas Woodrow Wilson, signed it into law one hour after
being passed by the Congress! Somebody very powerful really wanted this law passed. The Federal Reserve System is an independent
central bank. Although the President of the United States appoints the chairman of the Fed, and this appointment is approved
by the United States Senate, the decisions of the Fed do not have to be ratified by the President, or anyone else in the executive
branch of the United States government. Buried in the legislation was the granting of total power over the monetary policies
of all US banks. A very curious statement is found in the original 1913 law. SEC. 30. The right to amend, alter, or repeal
this Act is hereby expressly reserved. Reserved expressly to whom, or what? No definition is provided. This is the entire
Section 30 statement! "Curiouser and curiouser, cried Alice".
Stock not held by member banks shall not be entitled
to voting power. This clause guarantees that no outsider can justify buying shares in the Federal Reserve. "But wait! There's
Sec. 341 Second. To have succession for a period of twenty years from its organization unless it is
sooner dissolved by an Act of Congress, or unless its franchise becomes forfeited by some violation of law. The Federal Reserve
was only given a corporate life of 20 years! Their time was up in 1933 Who was President at that time? Franklin. D. Roosevelt,
of course. Somehow, the Federal Reserve's termination did not occur. Reader, do I have your attention yet? My research failed
to find any reauthorization of the Federal Reserve Act of 1913, other than the tacit approval given by the Sarbanes-Oxley
Act of 2002.
No Senator or Representative in Congress shall be a member of the Federal Reserve Board or an officer
or a director of a Federal Reserve bank. No member of Congress is have access to the inner sanctum! Hello, what is this? Are
they afraid that an American might come upon something untoward? 12 USC 3019 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. People, I think we are a roll now.
SEC. 25.Any national banking association possessing
a capital and surplus of 1,000,000 dollars or more may file application with the Federal Reserve Board, upon such conditions
and under such regulations as may be prescribed by the said board, for the purpose of securing authority to establish branches
in foreign countries or dependencies of the United States for the furtherance of the foreign commerce of the United States,
and to act, if required to do so, as fiscal agents of the United States. Such application shall specify, in addition to the
name and capital of the banking association filing it, the place or places where the banking operations proposed are to be
carried on, and the amount of capital set aside for the conduct of its foreign business. The Federal Reserve Board shall have
power to approve or to reject such application if, in its judgment, the amount of capital proposed to be set aside for the
conduct of foreign business is inadequate, or if for other reasons the granting of such application is deemed inexpedient.
Wow, the US government has no formal control over the foreign operations of the Federal reserve banks! The Federal reserve
banks are exempt from all taxation. These people are very independent. Independent of audits, independent of congressional
supervision, and independent of the American voter.
The Federal Reserve claims that nobody owns it – that it
is an "independent entity within the government." The Federal Reserve is subject to laws such as the Freedom of Information
Act and the Privacy Act which cover Federal agencies but not private corporations; yet Congress gave the Federal Reserve the
autonomy to carry out its responsibilities insulated from political pressure. Each of the Fed's three parts – the Board
of Governors, the regional Reserve banks, and the Federal Open Market Committee – operates independently of the federal
government to carry out the Fed's core responsibilities. Once a member of the Board of Governors is appointed, he or she can
be as independent as a U.S. Supreme Court judge, though the term is shorter. As the nation's central bank, the Federal Reserve
derives its authority from the U.S. Congress. It is considered an independent central bank because its decisions do not have
to be ratified by the President or anyone else in the executive or legislative branch of government, it does not receive funding
appropriated by the Congress, and the terms of the members of the Board of Governors span multiple presidential and congressional
terms. (The Fed's financial independence arises because it is hugely profitable due to its ownership of government bonds.
(It gives the government billions of dollars each year.) However, the Federal Reserve is subject to oversight by the Congress,
which periodically reviews its activities and can alter its responsibilities by statute. Also, the Federal Reserve must work
within the framework of the overall objectives of economic and financial policy established by the government.
only statements of ownership made by the Federal Reserve Board is an allusion to the twelve Federal district banks. This circle
puts us back at the beginning, for no information is provided regarding the ownership of the twelve Federal district banks.
However, a 1976 government study commissioned by the Federal Reserve Directors revealed the following:
OF THE FEDERAL RESERVE Most Americans, if they know anything at all about the Federal Reserve, believe it is an agency of
the United States Government. This article charts the true nature of the "National Bank." Chart 1 Source: ** Federal Reserve
Directors: A Study of Corporate and Banking Influence ** - - Published 1976 Chart 1 reveals the linear connection between
the Rothschilds and the Bank of England, and the London banking houses which ultimately control the Federal Reserve Banks
through their stockholdings of bank stock and their subsidiary firms in New York. The two principal Rothschild representatives
in New York, J. P. Morgan Co., and Kuhn, Loeb & Co. were the firms which set up the Jekyll Island Conference at which
the Federal Reserve Act was drafted, who directed the subsequent successful campaign to have the plan enacted into law by
Congress, and who purchased the controlling amounts of stock in the Federal Reserve Bank of New York in 1914. These firms
had their principal officers appointed to the Federal Reserve Board of Governors and the Federal Advisory Council in 1914.
In 1914 a few families (blood or business related) owning controlling stock in existing banks (such as in New York City) caused
those banks to purchase controlling shares in the Federal Reserve regional banks. Examination of the charts and text in the
House Banking Committee Staff Report of August, 1976 and the current stockholders list of the 12 regional Federal Reserve
Banks show this same family control.
George Bush presided over a minor change in the Federal Reserve Act. The
Sarbanes-Oxley Act was passed in 2002. The American Congress failed again to deal with the Federal Reserve. Bush managed to
keep all discussion and changes confined to some reporting requirements for financial institutions. Bush knows very well who
he serves, and he really serves his master well. It's amazing how few grasped the significance of Alan Greenspan being knighted
by the Queen of England! Greenspan was knighted on September 26, 2002. An obvious reward for preventing any real discussion,
or change, of the Federal Reserve during the Sarbanes-Oxley Act debates. Had an American President been knighted, serious
questions would have arisen. It was so each easier to reward her manager, Alan! Do you still believe that Alan Greenspan has
the power of Dearth Vader? He is only a little man, faithfully serving his queen.
The British Crown, or the British
monarchy is the owner of the Federal Reserve. This is their real secret. The strategy of the Federal Reserve is their other
secret. Again, it is right of front of us, but no one sees the obvious. The strategy of the Federal Reserve is to accumulate
all the wealth through the very slow, but effective, technique of currency debasement. The monarchs of old used to shave or
clip the coins as they passed through their treasuries. Now the process is more sanitary (no more clipping and scraping all
those dirty coins). John Maynard Keynes clearly stated that at there is no more effective method of destroying a society than
through currency debasement.
The primary reason for its success is the inability of most people to understand that
more is not necessarily better. A recent conversation highlighted Kenyes's observation. There is some agitation to raise the
minimum wage in my state. I listened to a proponent of a higher minimum wage. I attempted to point out that an increase in
a large number of people's income would only result in prices going up, along with the obvious tax increases. "What was I
talking about?" was the response. I explained that some percentage of people might wind up dealing with tax bracket creep
(increases), and all will have with the obligatory tax increases that follow from any price increase. If nothing else, the
sales tax must go up because the prices have gone up. I was immediately informed that I was the most negative person they
had ever talked to.
The Federal Reserve will always debase the currency to take its cut, and guarantee that the government
has a tax base available to feed its bureaucratic family. The government is a total slave of the Federal Reserve. For example,
analyze the latest real estate boom. There will be a major boost in property taxes based on the new valuations. Many people
will be surprised when they receive their new tax bill. This will guarantee more money for the government coffers. They know
that people will do almost anything to keep their homes. What's another job or two per family? Besides, the extra job will
provide more tax revenue for the government. This will require more day care, or baby-sitting services for many families,
which create more income for the government. This will cause more meals to be eaten out, which creates more revenue for the
government Meanwhile, prices will continue to go up, which creates more sales tax revenue for the government. Are you getting
the point yet? Deflation is end of the government. The local, state, and federal government will all fail!
the strategy of the Federal Reserve. The majority of the people will always believe that more is better. Knowing that, and
now having a democracy ensconced in the US, it was time to feed and breed. Prices always go up, and everything is "Wunnerful,
Wunnerful" Bring on the Champagne Lady. Alan runs the bubble machine. The illusion of money has destroyed most people since
society (government) developed socialism. Democracy feeds on the illusion of something for nothing. As each demagogue promises
more than his competition, the tax burden becomes oppressive. The monetary illusion serves to conceal the costs through currency
debasement. This assures the complete destruction of the society that embraces this perversion. Any attempt to introduce logic
into a dialogue will be defeated by claiming you're an elitist devoid of compassion. Envy, hate, and manipulated passions
are the hallmark of democracies. While all this destruction is occurring, money diverted by the mechanism of currency debasement
is constantly being transferred to the British Crown in the City of London.
Any questions, gang?
For Free Men
Wayne N. Krautkramer firstname.lastname@example.org
More commentary at http://onlypill.tripod.com/
Corporation of the City of London:http://www.fact-index.com/c/ci/city_of_london.html
The Bank of England:http://www.fact-index.com/b/ba/bank_of_england.html#History
The Sixteenth Amendment:http://www.lovetolearnplace.com/SpecialDays/IncomeTax/
Federal Reserve Act of 1913:http://aor.cat4.net/federalreserveact1913/
Federal Reserve: 2002 Amendment:http://www.frbdiscountwindow.org/federalreserveact.html
Federal Reserve ownership:http://land.netonecom.net/tlp/ref/federal_reserve.shtml