Unless you've been living under a rock somewhere you either know what the Federal Reserve is or have at least heard of it. The purpose of the Federal Reserve is that it serves as the Central Banking system for our country and controls the money supply. Most believe that without it we would not be able to run our country effectively and our economy would simply perish leaving us a poor stricken third world country in the end. The Chairman of the Federal Reserve along with the federal government would have us believe this.
Nothing could be further than the truth as I will explain in this article.
The History of the Fed
Although the Federal Reserve was enacted into law by Congress on December 23rd, 1913, one year after the sinking of the Titanic, it was actually conceived in secret off the coast of Georgia on an island known as Jekyll Island by a group of wealthy financiers and industrialists including Senator Nelson Aldrich. This is a historical fact.
J.P. Morgan, who also owned the White Star Line and the Titanic, whom I wrote about in a previous blog, was a key player in the creation of the Federal Reserve but did not attend the meeting on Jekyll Island.
These men would spend several days coming up with a banking scheme after a series of financial panics led to the desire for central control of the monetary system in order to alleviate financial crises. But that is what they wanted congress and the public to believe. If this were the case we wouldn't continue to have busts, depressions and recessions continuing to occur decade after decade.
In fact, its true purpose was to make sure these financial crises actually took place so the men who actually controlled the Fed would reap the benefits when money was borrowed with interest.
Have you ever asked yourself why we have a national debt that continues to grow year after year with no end in sight? If the Fed is supposed to prevent this from happening, which they claim is one of their goals, along with many financial crises why hasn't anything been done?
When a large bank is about to declare bankruptcy the Federal Reserve helps them by loaning them more money, with interest, that is created out of nothing.
How the Federal Reserve Works
The Federal Reserve was designed, believe it or not, to complicate and confuse the average person from figuring out how their complex system works. You have to dig deep to find the answers.
Why is it that we are always having to borrow money we don't have from the bank, whether it be for a new house or buying a new or used car? And why do we have to pay interest on it?
Our constitution states that when we print money it has to be backed 100% by gold and that only the U. S. Treasury is legally allowed to control the money supply. In other words, the Federal Reserve is illegal and not owned by the government. It is as federal as Federal Express.
When the U.S. government needs to borrow money it doesn't have it turns to the Federal Reserve who loans the money out with a blank check and charges interest on that loan that the government can never pay back as long as that interest is applied to the loan. The same is true when banks need to borrow more money from the Fed.
So where does that interest go? Into the hands of elite bankers who own the Federal Reserve.
There is another part of this Ponzi scheme that takes place at your local bank called “Fractional Reserve Banking” and it works like this. When you deposit money into your bank account the bank is required to hold only 10% of that deposit while the rest is loaned out to other customers who ask for a loan. And yes, they charge interest on that loan that was originally the money you deposited but you don't earn any of that money that was loaned out with interest. So if one day you decided you want the money back that you deposited you may receive it all.
But what happens if every customer at the bank asks for all their money back? Well, with that “Fractional Reserve Banking” rule the bank is going to have everyone’s money on hand because they've loaned it out to their customers, thus resulting in what's called a “Bank Run” forcing the bank to either foreclose or borrow more from the Fed with interest. One example of this is the “Stock Market Crash of 1929” which resulted in the Great Depression.
Are you starting to get an understanding of the conspiracy behind the creation and purpose of the Federal Reserve?
The reason our dollar is so weak right now is because it is not backed by any gold, which it should be if our government would actually abide by the laws in our constitution set forth by our founding fathers.
Throughout history, as long as there has been a central bank that controls the money supply of our country, our economy has suffered greatly. During times when there was no central bank our economy has flourished and prospered.
The Federal Reserve is not only unnecessary it is illegal and is a poison to our economy.
Don't listen to those in power who say just the opposite. They are reaping the benefits because of it.
How do we resolve this? By printing money that is backed 100% by gold so that the dollar remains 100% strong and we never have a national debt that lets our government spend more than what it has.
A sound money system is the answer to our economic woes. Not the Federal Reserve.