The Federal Reserve System
The Federal Reserve System is the central banking system of the United States. It was created in 1913, with the enactment of the Federal Reserve Act, and was largely a response to prior financial panics and bank runs, the most severe of which being the Panic of 1907.
As the government's bank, or fiscal agent, the Fed processes a variety of financial transactions involving trillions of dollars. The U.S. Treasury keeps a checking account with the Federal Reserve, through which incoming federal tax deposits and outgoing government payments are handled. As part of this service relationship, the Fed sells and redeems U.S. government securities such as savings bonds and Treasury bills, notes and bonds. It also issues the nation's coin and paper currency. The U.S. Treasury, through its Bureau of the Mint and Bureau of Engraving and Printing, actually produces the nation's cash supply and, in effect, sells it to the Federal Reserve Banks at manufacturing cost, currently about 4 cents per bill for paper currency. The Federal Reserve Banks then distribute it to other financial institutions in various ways.
Interest free money has been introduced a couple of times in the US, only briefly though, both Presidents who introduced it were assassinated and their succeeding Presidents quickly did away with it.
US President John F Kennedy signed Executive Order 11110 in June of 1963, This Order returned the power to issue currency to the government, without going through the Federal Reserve Bank. The money was issued interest-free and was backed up by the silver reserve. Five months later JFK was dead. Coincidence, perhaps, there are many questions to be asked about JFK's death.
Kennedy's chief of special operations for the joint chief of staff, Fletcher Prouty, and Kennedy's defense secretary, Robert McNamara both say Kennedy wanted to end the war in Vietnam. Prouty says that Kennedy signed Memorandum 263 which stated that all soldiers and other personell would be withdrawn from Vietnam by 1965. McNamara also says Kennedy refused to endorse the introduction of US combat forces in Vietnam.
After his death, an unelected president, Lyndon Johnson replaced Kennedy, as we know there was certainly no such withdrawal from the war by 1965, thats a whole new can of worms right there, but get this, Johnson's first act on the plane (Air Force One), after being sworn in on the flight, was to put back into effect the Federal Reserve Act that Kennedy had revoked and paid the one billion buy out clause that was part of that act. So basically, Johnson immediately removed the interest free money Kennedy had introduced.
At Columbia University ten days before Kennedy was assassinated he said;
"The High office of president has been used to foment a plot against the American people. Before I leave office, I must inform the citizen of his plight."
Perhaps the assassination of JFK was a warning to future presidents who would think to eliminate the U.S. debt by eliminating the Federal Reserve's control over the creation of money? Personally, I think that was just one reason, Kennedy was 'dangerous' to the elite for many reasons, he had already made speeches (above) regarding 'a plot against the American people', he wanted an interest free money system and he wanted out of Vietnam. Johnson, who replaced Kennedy was exactly the opposite as we can see from the horrific stain on history that was the Vietnam war.
US President Abraham Lincoln created government interest-free money, so called green-back dollars, to pay off the debt from the Civil War. In 1865 Lincoln was assassinated. As with Kennedy's assassination, after Lincoln was killed, the interest-free money was taken out of circulation.
Lincoln, as with Kennedy was aware of the corruption taking place, take a look at his letter to William Elkins, Nov 21, 1864:
"I see in the near future a crisis approaching. It unnerves me and causes me to tremble for the safety of my country. The money powers preys upon the nation in times of peace and conspires against it in times of adversity. It is more despotic than a monarchy, more insolent than autocracy, more selfish than bureaucracy. It denounces, as public enemies, all who question its methods or throw light upon its crimes. I have two great enemies, the Southern Army in front of me & the financial institutions at the rear, the latter is my greatest foe. Corporations have been enthroned, and an era of corruption in high places will follow, and the money power of the country will endeavor to prolong its reign by working upon the prejudices of the people until the wealth is aggregated in the hands of a few, and the Republic is destroyed."
"In the United States we have, in effect, two governments ... We have the duly constituted Government ... Then we have an independent, uncontrolled and uncoordinated government in the Federal Reserve System, operating the money powers which are reserved to Congress by the Constitution..."
"In fact there has never been an independent audit of either the twelve banks of the Federal Reserve Board that has been filed with the Congress... For 40 years the system, while freely using the money of the government, has not made proper accounting."
(Wright Patman of Texas - House Banking Chairman).
Almost all US banks are a part of the Federal Reserve System, which requires that those banks maintain a certain percentage of their assets deposited with the regional Federal Reserve Bank. These "reserve requirements" are set by the Board of Governors and by changing the requirements, the Federal Reserve System can greatly impact the amount of money supply in the economy.
Why the Federal Reserve is Unconstitutional.
Article 1, Section 8, of the U.S. Constitution says:
“Congress shall have Power ... To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures.”
In 1913, Congress passed the Federal Reserve Act. This Act created the Federal Reserve system giving it the power to regulate the value of America's currency. The power to create money and regulate the value thereof is given to Congress by the U.S. Constitution. The U.S. Constitution does not give Congress the power to give away any of its powers, established by the Constitution. Therefore, when Congress signed the Federal Reserve Act, they knowingly gave away their power to the Federal Reserve, which is unconstitutional. The Federal Reserve is not controlled by Congress. The 12 Federal Reserve banks, which make up the Federal Reserve system are all privately owned corporations.
On May 23, 1933, Congressman, Louis T. McFadden, brought formal charges against the Board of Governors of the Federal Reserve Bank system. The Controller of the Currency and the Secretary of United States Treasury for numerous criminal acts, including but not limited to, "CONSPIRACY, FRAUD, UNLAWFUL CONVERSION, AND TREASON." The petition for Articles of Impeachment was thereafter referred to the Judiciary Committee and has yet to be acted upon. I highly recommend visiting, groups.yahoo.com/group/legality-of-income-tax, to read Louis McFadden's speech).
Look at the recession that is happening right now (2007-2009), this could all be avoided by introducing the interest-free system, its crazy, debt just keeps rising and rising, this corrupt system which controls our lives everyday is designed to create debt and through debt it has control.
Two closing points to consider for now;
1. There is more debt owed than there is currency in circulation.
2. It is Impossible to be debt free when the only money in circulation is loaned, plus interest.
This video is an hour long but its very, very good, based in particular around the US economy but its the same story being told in every country really. No matter what your views are the facts in this video are undeniable, it is well worth watching.