THE FED - FINANCIAL
MAFIA OF THE USA. [The debate continues]
Here only extract (Part 1. Notes excluded]
An analysis of the
critical provisions of the Federal Reserve Act 1913 that gave rise to financial cartel and
its absolute power. Why so many analysts fail to understand the real objectives
of the FED. Why Gold will ultimately be
accepted as the only solution to the present financial crisis.
By Matthias Chang – http://futurefastforward.com December 23, 2013
In all my articles
(save the article exposing one of the biggest misconception in banking – i.e. a
depositor’s money is safe in the hands of a bank, when in law a depositor is
but an unsecured creditor to the bank) I have avoided using legal arguments to buttress my conclusions as I am
of the view that applying common sense and logic would be sufficient to close
the argument.
However, lately I came to the realization that many
financial analysts of repute in their discussions of the FED have failed to
appreciate the statutory provisions of the Federal Reserve Act, 1913 and the
subsequent amendments and how they have shaped and determined FED’s policies.
More importantly, the legal profession of the United States
has been remiss in its professional duty to uphold the law and expose the
inherent fraud and duplicity of the Act!
This is especially so with regard to the criticisms that the
FED has saved Wall Street at the expense of Main Street, notwithstanding that
one of the so-called principal responsibilities of the FED is to “ensure full
employment and price stability”.
Let me state it explicitly here and now, and without any
fear of contradiction that the so-called twin duties of the FED is a bloody
con, to camouflage the real agenda of the FED – to have absolute centralised
control of the power to create money out of thin air – and of necessity, by way
of DEBT.
For the purposes of this article and the exposé of the real
agenda of the FED embedded in the Federal Reserve Act 1913, we need only to analyze
a few provisions. It is not possible and necessary to analyze the entire
Federal Reserve Act for the purpose of
this exposé.
Any analysis of statutory provisions can be boring and dry,
so bear with me as this exposé is critical to your understanding of the current
FED’s policies and that of central banks in general.
Let’s proceed!
I shall adopt the format of first analysing the original
provisions of the 1913 Act and then proceed to examine whether the subsequent
amendments have altered the import / intention of the original provisions. By
this analysis, you will be able to see how the FED’s control became more
centralised and more powerful over the years. One must also understand the
historical reasons for the enactment of certain provisions of the Federal
Reserve Act 1913 (the Act).2
1) ORIGINAL OBJECTIVES OF THE FED
(i) Preamble of the
Act
“An Act to provide
for the establishment of Federal reserve banks, to furnish an elastic currency, to afford means
of rediscounting of commercial paper, to establish a more effective supervision
of banking in the United States, and for other purposes.”
Get these 4 objectives tattooed into your brain.
I would like to focus first on the words, “elastic
currency”. The terms “elastic” and “inelastic” are common terms in Economics
101 and students would encounter the aforesaid terms in the study of Demand and
Supply for goods and services. The term “inelastic supply” refers to shortage
and or inadequate supply for various reasons associated with the production of
goods and services etc. The term “elastic supply” would connote abundance and
or the increase in capacity to supply, again for various reasons.
Therefore to “furnish
an elastic currency” is to provide “additional” currency. Another term associated with “elastic” would
be “liquidity” (i.e. “more liquid” or “less liquid” in the supply).
One need not be a rocket scientist to observe immediately
that what is glaringly absent in the said provision is how elastic currency would be produced (to use the more appropriate
banking term - to create “elastic currency”). That is why lawyers are worth
their weight in gold when they are employed to draft statutes that enable the
powers that be to hide the true agenda by legal jargon / verbiage!
There are of course specific provisions for the creation of
“money” (the better term should be
“currency”) yet, so very few (even those with legal training) have understood
the mechanics of “money creation”, specifically “fiat money creation” the
ultimate objective of the Masterminds of the banking cartel as we shall see in
the discussion below.
A famous industrialist warned:
“It is well enough
that people of the nation do not understand our banking and monetary system,
for if they did, I believe there would be a revolution before tomorrow
morning.” Henry Ford
How about this quotation from the King of money creation:
"Give me control
of a nation's money and I care not who makes it's laws." Mayer Amschel Bauer Rothschild
"Banks lend by creating credit
(ledger-entry credit, monetized debt). They create the means of payment out of
nothing." Ralph M. Hawtrey,
Secretary of the British Treasury
"A great
industrial nation is controlled by it's system of credit. Our system of credit
is concentrated 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
world-- no longer a government of free opinion, no longer a government by
conviction and vote of the majority, but a government by the opinion and duress
of small groups of dominant men." President Woodrow Wilson
It is indeed ironic that President Woodrow Wilson would make
such a declaration as he was the President that signed the Act into law!
Please see APPENDIX 1
for other relevant quotes.
I will skip the third objective – “to afford means of
rediscounting of commercial paper” as this relates more to an aspect of banking
operations.3 However, we will discuss
this in more detail when we analyse Section 16 of the Act.
The fourth objective looks and sound innocuous – “to establish a more effective supervision
of banking in the United States”. But, behind these simple words, lies the
ultimate power to centralise and control the entire banking industry in the USA
under the cover of “supervision”. It must be observed that the originators of
the Act took great pains to avoid any reference in the body of the Act to the
establishment of a “Central Bank” as at the material time there were much opposition to such an
institution, especially when two previous statutory attempts failed.4
The concluding words, “for
other purposes” exemplify the typical loophole in legislations to create
other hidden powers without the need for any specific amendments which would
draw unnecessary attention to such additional powers. The usual argument for
such additional “general and or discretionary powers” is to enable the FED to
achieve the objectives more efficiently, without which the objectives may not
be achieved!
Given the above premises, it was only to be expected that
there would be strong opposition to such plans. President Thomas Jefferson and
President Andrew Jackson were the main opponents during the relevant historical
periods.
"I believe that
banking institutions are more dangerous to our liberties than standing armies.
If the American people ever allow private banks to control the issue of their
currency, first by inflation, then by deflation, the banks and corporations
that will grow up around [the banks] will deprive the people of all property
until their children wake-up homeless on the continent their fathers conquered.
The issuing power should be taken from the banks and restored to the people, to
whom it properly belongs."5 President Thomas
Jefferson
“I was aware that the Bank question would be disapproved by all the sordid
and interested who prized self-interest more than the perpetuity of our
liberty, and the blessings of a free republican government … I foresaw the
powerful effect, produced by this moneyed aristocracy, upon the purity of
elections, and of legislation; that it was daily gaining strength, and by its
secret operations was adding to it.… I have brought it before the people and I
have confidence that they will do their duty.” President Andrew Jackson
The objectives as stated in the Preamble to the Act are so
critical to the banking elites that subsequent amendments to the Act did not
change the wordings of the 4 objectives in the original Preamble. However, we
noticed that subsequent amendments (and
of course explanations to the amendments by so-called experts) have deliberately focused on the
“additional objectives” so as to divert the attention from the original 4
objectives.
Not many people pay attention to the Preamble of an Act. It
is the essence of the Act. The rest are elaborations to ensure the objectives
are fulfilled.
This is made clear by the new section 2A of the Act and we
quote:
(ii) Section 2A Monetary Policy Objectives
[12 USC 225a. As added by act of November 16, 1977 (91 Stat.
1387) and amended by acts of October 27, 1978 (92 Stat. 1897); Aug. 23, 1988
(102 Stat. 1375); and Dec. 27, 2000 (114 Stat. 3028).]
“The Board of
Governors of the Federal Reserve System and the Federal Open Market Committee
shall maintain long run growth of the monetary and credit aggregates
commensurate with the conomy's long run potential to increase production, so as
to promote effectively the goals of maximum employment, stable prices, and
moderate long-term interest rates.”
It is our opinion that these latter objectives (which we
have underlined for emphasis) are
superfluous as the record shows that the FED has never and could never by its policies control
employment, stable prices and or long term interest rates. For the purpose of
this article, it is sufficient for us to draw your attention to the dismal
performance of the FED in these three areas, post the Dot.com crisis and the 2008 financial tsunami! All the
boom and bust cycles since 1913 can be attributed to FED’s deliberate policies
giving rise to boom and bust cycles.
The fact that there
are presently more than 40 million Americans on food-stamps is sufficient indictment
on the FED performance. QED!
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IT CONTINUES. Follows the rest….
2) POWERS TO CREATE MONEY
3) HOW A “Federal reserve note” IS CREATED
4) WHAT TYPES OF SECURITY ARE ACCEPTABLE BY THE FEDERAL RESERVE
BOARD IN EXCHANGE FOR THE Federal reserve notes TO BE ISSUED?
5) WHAT KIND OF RESERVES MUST BE MAINTAINED
6) SECTION 18 FEDERAL RESERVE BANK NOTES
7) GENERAL OBSERVATIONS ON PRESENT FEDERAL RESERVE NOTES
APPENDIX 1 Quotes On
Banking and the Federal Reserve System FRAUD
APPENDIX 2 A Brief
History of US Currencies
APPENDIX 3 In 1933,
the US Congress made a remarkable House
Resolution. In essence, what Congress
resolved was that previous legislative provisions requiring gold payments etc. are contrary to
public policy. OMG!
TO READ FULL ARTICLE OPEN: http://futurefastforward.com/images/stories/financial/Analysis_of_the_Federal_Reserve_Act_1913.pdf
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