Federal Reserve?

Question

As most people are aware, the federal reserve is not a government entity, and runs autonomously with no audits or other restraints in place.

As everything costs money to do things, and nobody works for free anymore;

With what do we pay the banking cartel which is the federal reserve? If they print the money and circulate it, what is there left to pay them with?

Do we ask them to print more money to pay themselves?

Or, do we simply allow them to run governments in return for their 'service' to mankind?

I can not think of how these people can be paid if they print the money.

Answer 1

Simple.  The Fed buys the notes from the Treasury.  Regardless of whether it's $1, $5 $10 or $100 notes, the Fed pays between 50 to 70 cents per note.  They pay about $20.60 per 1,000 of any denomination.  So that's about 2 cents per note.  So a lot of 1,000 - $100 notes ($100,000 in face value notes) they pay $20.60.  They then use those notes to purchase U.S. Treasuries.  So, if they used those $100,000 in notes to buy $100,000 in US Treasuries, their actual cost was only $20.60 (it cost them $20.60 for 1,000 - $100 bills and then used those 1,000 - $100 bills to buy $100,000 in Treasuries).  The Gov't then owes the Fed $100,000 + interest when the securities mature.  So, for a $20.60 cost, they purchase $100,000 in Federal Reserve Notes, use the $100,000 in Face Value Fed Res. Notes to buy $100,000 in Treasuries, and then the gov't owes the Fed $100,000 principal and interest at maturity.

According to the Grace Commission Report (President's Private Sector Survey on Cost Control), the commission stated that 100% of revenue collected from income taxes goes to pay the interest on the national debt, ie, all those treasuries that the fed bought at a cost of $20.60 per 1,000 units of $100 bills.

If you or I did that, we'd be in jail.  And for the posters that say it is a part of the gov't; if they are why then under Title 12 USC, Chap. 3, Subchap. 6, Sec. 282 are banks that are seeking to become member banks required to purchase the CAPITAL STOCK of the fed bank in it's district?  If it were purely govermental, all banks would be required to be a part of the system and under Title 12 USC, Chap. 3, Subchap. 6, Sec. 281, fed banks can not commence operations without at least $4 million in capital - the gov't would just fund capital requirements.  Defense contractors aren't required to buy the capital stock of the Dept. of Defense.  Energy companies aren't required to buy the capital stock of the Dept. of Energy.

If the Fed is a gov't institution, why did Congressman Louis McFadden state "We have in this country one of the most corrupt institutions the world has ever known. I refer to the Federal Reserve Board and the Federal Reserve Banks, hereinafter called the FED. They are not government institutions. They are private monopolies which prey upon the people of these United States for the benefit of themselves and their foreign customers."  And also "The Federal Reserve (Banks) are one of the most corrupt institutions the world has ever seen. There is not a man within the sound of my voice who does not know that this Nation is run by the International Bankers."  And also "Some people think the Federal Reserve Banks are US government institutions. They are not... they are private credit monopolies which prey upon the people of the US for the benefit of themselves and their foreign and domestic swindlers, and rich and predatory money lenders. The sack of the United States by the Fed is the greatest crime in history. Every effort has been made by the Fed to conceal its powers, but the truth is the Fed has usurped the government. It controls everything here and it controls all our foreign relations. It makes and breaks governments at will."

Why did Congressman Charles Lindbergh (father of the aviator) state, "This Act [Federal Reserve Act] establishes the most gigantic trust on earth. When the President signs this bill the invisible government by the Money Power, proven to exist by the Money Trust investigation, will be legalized…This is the Aldrich Bill in disguise…The people may not know it immediately, but the day of reckoning is only a few years removed. The trusts will soon realize that they have gone too far even for their own good. The people must make a declaration of independence to relieve themselves from the Monetary Power. This they will be able to do by taking control of Congress. Wall Streeters could not cheat us if you Senators and Representatives did not make a humbug of Congress… If we had a people’s Congress, there would be stability."

We forget the lessons of the past.  The fed is not the nations first central bank, it's the fourth.  That's because the founding fathers wanted nothing to do with a central bank.  Karl Marx's Communist Manifesto called for the centralization of money into a central bank.  Our constitution calls for Congress to issue our money.  Andrew Jackson's platform for his 2nd term of office was based on ending the Bank of the U.S. - the nation's central bank at that time.

Also explain these quotes:

"These 12 corporations together cover the whole country and monopolize and use for private gain every dollar of the public currency..." -- Mr. Crozier of Cincinnati, before Senate  Banking and Currency Committee - 1913

"The Federal Reserve system pays the U.S. Treasury 020.60 per thousand notes --a little over

2 cents each-- without regard to the face value of the note. Federal Reserve Notes, incidently, are

the only type of currency now produced for circulation. They are printed exclusively by the

Treasury's Bureau of Engraving and Printing, and the $20.60 per thousand price reflects the Bureau's full cost of roduction. Federal Reserve Notes are printed in 01, 02, 05, 10, 20, 50, and 100 dollar denominations only; notes of 500, 1000, 5000, and 10,000 denominations were last printed in 1945." --Donald J. Winn, Assistant to the Board of Governors of the Federal Reserve system

"The Federal Reserve Banks are not federal instrumentalities..." -- Lewis vs. United States

9th Circuit 1992

"The regional Federal Reserve banks are not government agencies. ...but are independent, privately owned and locally controlled corporations." -- Lewis vs. United States, 680 F.  2d 1239 9th Circuit 1982

Answer 2

The Federal Reserve Bank is a secret society operated by the international bankers (Illuminati) with the final goal to slave our society.

My 2 cents.

Answer 3

Read the beginning of "For Us, The Living" By Robert Heinlein

Within the first 100 pages he addresses the inherent issues with this.

Answer 4

It is a leach on society.

Answer 5

You make absolutely no sense.  The federal reserve is an agency of the US government.

Answer 6

The federal reserve is a Government agency with a board of directors.

Answer 7

Au contraire!

The Federal Reserve System is a congressionally-chartered agency like the USPS and NASA. It is organized with a 100% government agency at the top (the Board of Governors), branches beneath them that are organized like corporations with member banks as shareholders.(Ref: http://www.federalreserveeducation.org/f... , http://www.federalreserve.gov/generalinf... )

The Board of Governors are all appointed for 14-year terms by the president and confirmed by congress. It operates per it's charter and laws set by congress. it is overseen by congress. There is no structure or mechanism for private ownership at this level; it is a government agency. You can confirm this from a number of government sites that list it as a government agency (e.g. http://www.whitehouse.gov/government/ind... Board members are forbidden by law to have any economic interest in a private bank. (Ref: Title 12 chapter 3 of the U.S. Legal Code). The Board determines monetary policy and provides high level oversight of the branches.

The 12 branches, however, are organized to involve member banks in the day-to-day operation.  Member banks are required to buy shares in their branch. Each bank has one vote. The shares get a standard 6% dividend. They can vote for 6 of their 9 board members.  All 'profit' from the Federal Reserve branches are turned over to the Treasury at the end of the year.

- You want audits? Take a look at http://www.federalreserve.gov/boarddocs/...

By law they have to be audited at least once a year and submitted to congress.

- Re: "How are they paid?"

Really simple. They earn their income from user fees (like clearing checks) and on the T-Bills they own to collateralized the currency. The interest is far in excess of what they need to operate so they return most back to the Treasury.

You can review where the money goes from one of their audit reports http://www.federalreserve.gov/boarddocs/...

Answer 8

It is a business of and for the government.

A separate entity that is sucking the life out of the country.