What is the Federal Reserve?
“The Federal Reserve System (also known as the Federal Reserve, and informally as the Fed) is the central banking system of the United States…The task of the Federal Reserve System is to maintain employment, keep prices stable, and keep interest rates at a moderate level by regulating monetary policy. Components of the Federal Reserve System also supervise banks, provide financial services, and conduct research on the United States economy and the economies in the surrounding region.” (wikipedia)
That sounds great, right? Well, there are some problems. First off our currency has no real value. You can’t redeem your dollar for a certain amount of gold or silver – the value of the dollar is only perceived. As in what a dollar can purchase today might be drastically different from what it can purchase next year. (re: problems with fiat currency, what has the government done to our money) However, problems with inflation or the federal reserve constantly printing money and further devaluing our currency is not what I want to talk about. Rather, the glaring problem, in my opinion, is the secrecy.
“…under current law the Federal Reserve cannot be audited. As well, its decisions do not require ratification by anyone in the executive or legislative branches of government. Each time Congress has requested that the Federal Reserve submit to a voluntary audit, only refusals have been recieved. The Chairman of the Fed is therefore free to say anything he wants to Congress, and there is no way to verify the truth of his statements.
The Monetary Policy decisions made by the Fed are made at secret meetings, and Congress, as well as the public, are only made privy of brief reports released weeks later. Any transcripts made of the deliberations are destroyed. Every other government agency, even the CIA and NSA, are required by law to maintain all documents and transcripts of their activities. Since the Federal Reserve is not a government agency, these laws do not apply.” (Judge Andrew Napolitano)
Does it sound funny to anyone else that an organization that is in control of and put in charge of the entire country’s (one may argue world’s) money supply is not monitored or audited? I mean damn, every public company in the US is subject to an audit under Sarbanes Oxley! Why is arguably the most powerful organization on earth exempt from any accountablility?
If printing money as if was a manufacturer of monopoly bills or the secrecy doesn’t bother you perhaps the way the founding of the Federal Reserve occurred will. The first draft of the Federal Reserve Act of 1913 was drafted, in secret, by none other than a few of the most powerful bankers and their associates in U.S. history: Senator Nelson Aldrich, father in law of John D. Rockefeller; Frank Vanderlip, vice President of Rockefeller’s National city Bank of New York, Charles Norton, president of Morgan’s First National Bank of New York, Henry Davison, senior partner of J.P. Morgan Company, Benjamin Strong, head of J.P. Morgan’s Banker’s Trust Company, Paul Warburg, representative of the Rothschilds, and Abraham Andrew, Assistant Secretary of the Treasury. Anyone else find this an interesting group of people to propose and organization that would control the money supply? More importantly – why would they want to? (why would bankers want to control the money supply, seems like an easy one…)
” [The Banks] argue that the Federal Reserve Act…ensured that our currency was flexible…that if state banks did not have someone to look out for them, they would in essence over issue their notes and reduce the amount of money they dept in reserve because of their need to make a profit. They can make an agreement to warn each other when reserves are low and therefore not cash the checks from the deposits of banks whose reserves are low…when banks work together and work from one central place, no one needs to worry about crashing because it cannot pay back its debts, since it and its competition are all backed by a “lender of last resort.” It’s like a teenager with an unlimited credit card who knows that no matter how much money she spends, her parents will always pat the bill. Ant then imagine that the parents were able to force their neighbors to contribute to payments for the bill. Well, we are those neighbors…” (Lies the Government told You” pg. 153-156)
It sounds like the perfect scheme. The banks can overextend, lend more money, take on more risks, and collect more money via interest payments – and when they fail WE PAY THE BILL via taxes and inflation. I’ll bet some people would argue this would never happen – if it hadn’t already happened. (re: the Bank Bailout List) Great. Does no one else have a problem with this?
Hey, I’m no expert in monetary policy. Not even close, but it seems like everyone should agree that something is wrong when you can’t audit the very organization that controls the money and when no one holds the organization accountable. If money is power, it looks like the Fed can create power out of thin air.
Like Thomas Jefferson said, “If the American people ever allow private banks to control the issue of their money, first by inflation and then by deflation, the banks and corporations that will grow around them will deprive the people of their property until their children wake up homeless on the continent their fathers conquered.”