Seal for the Board of Governors of the Federal Reserve System

Restore the American Republic's Constitution!

Truth, Justice and the American Way

Find Truth and Justice, restoring the Progressive American Way of equal opportunities for all under a real Democracy. Learn why Government needs changed.

We can shift to sustainability. Be the solution and support a site that will:

"Change the World - One Byte at a time" - Three Eagles

Roots of Democracy will open dialog and content to define our American Democracy with news clips, articles, forums and blogs. Be patient while we add more content, as this is a work in progress.

We will share breaking and cutting edge news regarding Democracy, finding out what the World thinks.

Be better informed. Our articles and links will regard numerous Democratic policies, how they affect our lives, and facts about this Republic.

The idea here is to promote a true Democracy, yet educating the public to actual platforms of parties, and where they stand.

Secrets of the Federal Reserve

 

Roots of Democracy

The Federal Reserve Bank of the United States

Looking at the facts and fallacies about this huge American Corporation

By Dennis Knicely

Who owns the Federal Reserve, and how do they control it? There are many conspiracy theories about this, but what are the facts? Hopefully the links at the bottom of this editorial will give folks a better and more reliable perspective. One thing is certain: The Federal Reserve of the United States is the gatekeeper of the economy in this country. It regulates financial institutions and manages money with a major impact on the economy. Although it's name implies "Federal", it is not a government owned institution.

A list of the actual primary stockholders of the Federal Reserve Bank: Rothschilds of London and Berlin; Lazard Brothers of Paris; Israel Moses Seaf of Italy; Kuhn, Loeb & Co. of Germany and New York; Warburg & Company of Hamburg, Germany; Lehman Brothers of New York; Goldman, Sachs of New York; Rockefeller Brothers of New York. There are approximately three hundred more people or companies, mostly relatives, that hold stock or shares. NOTE: This information was researched BEFORE present "Bailout" re-configuration.

With the "financial meltdown" of 2008, it is clear, by research here, that major banking institutions of the New York City area play a major roll in the Federal Reserve. This Central Bank that issues money into our system here in the United States is a Corporation. It is controlled by the Board of Governors (the Board) and the Federal Open Market Committee (FOMC). The Board is a seven-member panel appointed by the President of the United States and approved by the Senate.

In this way interest rates for loans to commercial banks and thrifts are determined, and banks must keep customer deposits on hand affecting the bank's ability to create new credit. This results in a major decision on how much new currency can be issued through Federal Reserve Banks (12 USCA §248).

FOMC has members of the Board, the President of the New York Federal Reserve Bank, and four Presidents from other regional operations of the Fed. Open market policy determines the amount of bonds Federal Reserve Banks are able to buy or sell, resulting in the main factor in monetary policy (12 USCA §248).

The Federal Reserve Bank of New York plays the leading role in financial supervision of this organization. Although the New York Federal Reserve Bank has more power over monetary policy than any other Federal Reserve Bank, is only allowed one of twelve votes regarding the FOMC, that is shared with the other 11 Federal Reserve Banks througout the United States.

By raising and lowering interest rates, the Federal Reserve stimulates and sometimes slows down our economy. This affects the rate of inflation, employment capabilities, as well as U.S. manufacturing. The Fed's main functions are to stabilize prices ensuring maximum employment and production output. However, there is a "natural rate" of unemployment that helps balance the economy.

Prices can rise too quickly when unemployment is too low and there is a shortage of goods, causing inflation. When there is too little money there is very small economic growth, causing the Fed to sometimes lower interest, making it easier to get money.

Whether it is checks, bank notes, currency, or cash [coins], money is definitely highly controlled by the Fed. At one time money was worth the value of the metal in the coin, but this has changed drastically. Gold and then silver were the standard for these earliest coins, with copper, zinc, nickel and other metals sometimes used.

Bank notes issued as currency [paper money] took over in recent centuries, yet for a long time was required to be backed up by a certain amount of bank holdings, usually gold or silver, equal to the value of currency that was released. In the early part of the 20th. Century the Federal Reserve Bank was established, and to meet demand for money in circulation the statutes requiring any percentage of gold or silver to back up the currency was first fractionated, and later abolished.

In the United States there were over 30,000 different currencies in circulation before the Federal Reserve was created in 1913, with a shroud of secrecy regarding its founders, and what was discussed. Check links below for more details. There was a time before the Fed was established that banks did not have enough money to honor withdrawals by customers, sometimes causing severe collapse of the economy. Americans needed something they could believe in, leading to creation of the Federal Reserve Bank.

After its establishment the Federal Reserve organized, standardized and stabilized the money system, creating liquidity. This allowed banks to honor withdrawals, giving the general public "elastic currency" with the ability to control inflation. When this system works it prevents inflation and recession.

In the mid 20th Century noted writer Ezra Pound was imprisoned for over 15 years without ever being sentenced with a crime. At the behest of Ezra, Eustace Mullins spent more time in the U.S. Library of Congress than any American in History while researching this. His book on the subject is called "Secrets of the Federal Reserve", and a link to this book is posted at the bottom of this article. It gives a concise history how and why, from his perspective, the Federal Reserve Bank was founded, opening to the public highly guarded secrets until this book's release.

I met Eustace Mullins years ago, when he passed a copy of this book to me. It is well written, and documented to the best of his ability to get out the correct information at the time of its release. However, there have been numerous changes in the way the Fed works since it was originally published, so it takes further research in order to update it to 21st. Century standards. I cannot recommend a better source for the History of this organization, though.

It is true that European investors played a major role in establishing the Federal Reserve Bank of the United States, yet it is still somewhat unclear how much control Europeans still have over this, as its presiding Board are appointed by, and work with the Government of the United States.

One thing is clear through valid research: More money flows through Federal Reserve Banks than any other business in the United States of America... and they do make large profits. However, most of this profit is channeled right back into the Federal Government, and the Fed's stockholders get a very small fraction as dividends. The Federal Reserve Banking system has been paying most of its profits back to the Treasury of the United States since 1947.

For more pertinent information on the Fed, click here and go to: "A Letter from the Federal Reserve Bank"

The truth about the Federal Reserve System - 42:08 - Jan 26, 2006

Secrets of the Federal Reserve by Eustace Mullins EDITOR'S NOTE: Read the story through this online book...

G. Edward Griffin on the Federal Reserve System

 

US Economy is Collapsing

 

FEDERAL RESERVE ABOLITION ACT - HR 2755 Introduced by in the House of Representatives by Ron Paul on June 15, 2007 Read more...

How the Fed Works by Lee Ann Obringer

$700 Billion Was a Drop in the Bucket - By Christopher Barker October 9, 2008 - The Motley Fool - I remember when $29 billion sounded like a lot of money. Read more...

The actual owners of the Federal Reserve USA

Mega-Million Dollar CEO Payouts See How Much These Big-Name CEOs Took Home Each Year - By ZUNAIRA ZAKI ABC NEWS Business Unit - As Washington lawmakers debate as massive, $700 billion, bailout for Wall Street firms that invested in mortgages, CEOs have come under new scrutiny for their multi-million-dollar salaries, even when their companies have suffered. Read more...

WHO ARE THE FEDERAL RESERVE OWNERS? The Federal Reserve is Privately Held by Federal Reserve Owners Who Work Toward Your Demise so They can Profit off Your Labor. Read more...

Federal Reserve Bank of New York

Board of Governors of the Federal Reserve System Following is a general index of the Federal Reserve Board web site.

Zeitgeist: Addendum

 

Healing News Network for great ways to get well and stay healthy

Elegant Signs, Gold Leaf and Designs - Web or Graphic - by Dennis Knicely