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Fed Scandal Documentation
Contents ABCs of Money - the Patman Report from Congress
Could Have Known and Should Have Known
McFadden Report
Undoubtedly the most critical, well founded and earliest condemnation of the Federal Reserve System, the McFadden Report lays the Fed bare for all to see the atrocious fraud that it is. Chairman of a powerful House Banking Committee, McFadden completed a thorough examination of the Federal Reserve System. In no uncertain terms, he discussed slavery, downright robbery and the destruction FDR wrought. He predicted in 1933 that the Fed would ruin American, and it nearly has.
For those interested in knowing what the Fed is really like, this report is must reading.
Click here to go the full report with a hot linked index.
ABCs of Money
In 1964, Wright Patman completed a thorough examination of the Federal Reserve System. His work duplicates and reinforces the work done by McFadden. Chairman of a powerful House Banking Committee, Patman wrote eight pages totally damning of the Fed. Of significant interest, he describes the incident when the Fed threatened to veto Kennedy by turning off his money. Kennedy backed down. That incident alone illustrates the dictatorial power of the Fed.
Those interested in understanding the true, vile nature of the Fed must read this report.
Click here for an annotated contents of ABCs with a hot linked Table of Contents.
For Quotes on supporting the Fed's power to veto a president, click here.
1. For five years, follow the instructions in our Constitution. Make Congress create needed money and quit borrowing. That will blow the banking scandal wide open. People will realize that no national debt is being created and will wonder why we have any national debt at all. (Fed is a nickname for the Federal Reserve System.)
2. Install a DFMS (Debt Free Monetary System) and use it for five years. When people notice plenty of interest free money for all reasonable needs, they will wonder why the high interest rates and exorbitant fees for the use of money.
3. Install MEL. For five years allow MEL to control the amount of money in the economy. That amount must represent the value of workable American labor plus the natural resources that labor touches. The only need for taxes will be to remove the excess money from the economy. That tax money MUST be promptly extinguished back to the nothingness from whence it came. To do otherwise will cause extensive inflation.
4. For five years consider as law the Basic Law of Economics: Money can NOT cost money. Forest Glen Durland dares anyone to talk their way around this Free Money Corollary in a stable economy. For when money costs money, that interest charge instigates an inevitable price-wage spiral, causing what you call inflation.
5. For five years outlaw private banking. For, if money can NOT cost money, there can be NO private banks. Outlaw those useless fee grabbers that cause all the problems.
Following the above recommendations will remove inflation and the cause of inflatin, allowing it to zero out and remain non-existent. The cost of living will come back down to earth and remain stable. There will be no interest rates or cost of money.
The above plan will place the proper amount of debt free money in the economy, allowing jobs to create themselves. The resultant, prosperous economy will foster happy people. Happy people do not want to fight. Homelessness and wars will diminish.
6. After five years, view the booming economy with no inflation. Compare it with the unhappy mess that preceded it. Consider the ten false promises the lying billionaire banklords devised. Note that a prosperous, inflation free economy can NOT co-exist with private banklords.
The Federal Reserve System (the Fed) exists to extort fees from us people in a most covert manner. The billionaire banklords remain unseen by their own choosing, purposely keeping us people uninformed and misinformed. By their control of money, they cause others to complete their subversive activities as puppets on strings.
The Federal Reserve System is the worst financial and political scandal in American history, if not all history. Since a prosperous economy does not need the Fed at all except for routine activities such as check clearing, the only sensible solution is to totally abolish the Fed and replace it with a DFMS. In so doing, SEVEN ESSENTIAL POINTS must be implemented simultaneously. (See DFMS.)
Whoever controls money controls all. Five civilization have been destroyed by Fed-type banking.
In 1950 people made $4000 annually. A car cost $2000. In 1990 people made $40,000. A car cost $20,000. We see a parallel increase in inflation. No matter what the wage increase, the cost of living increases to eat it up. But the result of another ratio also increases to the detriment of us people. The interest the banklords extract also increases exponentially. People paid far more to the banklords in 1990 than in 1950.
For example, most cars are purchased on credit, and most loans extract about 2 ½ times the amount borrowed for interest. So, that $2000 car actually cost about $5000 in 1940. But in 1990 that $20,000 car cost about $50,000. The standard of living for people has not improved, but the people are paying $45,000 more to the banklords. Due to the nature of "our" banking system, that fee will continue to increase exponentially.
Now, add to this fee extraction the myriad other financial activities. Under the current system, each and every exchange of value that can be traced will yield a fee extraction to the banklords. It is possible that as total money involved increases, so will the number of transactions. That is to say, the more people earn, the more they must and will spend with more money involved. More businesses and services will appear with bargain prices typical of startups. Each transaction involving these opportunities to spend will yield an additional fee to the banklords.
In summary, it appears highly probable that the current debt money system operated by the private billionaire banklords (the Fed) is extracting an increasing fee from us people. Furthermore, this extraction is continuous. And it is exponential. It is not needed and must be outlawed.
"ABCs of Money" quotes The Federal Reserve System threatened to "veto" President Kennedy. Controlled by the NY Fed Bank, the Fed keeps the public misinformed and uninformed. The banks have a stranglehold on America. This very informative document is reprinted in Money Is Unreal. The original can be found in the Congressional Record, Vol 110 - Part 13, August 3, 1964, pages 17837 through 17846 (8 pages.) The veto threat is on page 17846 (the last page) near the bottom of the first column. It is much easier to order the ABCs in booklet form from Peter Cook, Monetary Science Publishing, Box 86, Wickliffe, OH 44092. You will find the veto statement on page 19 of that edition.
Click here for an annotated contents of ABCs with a hot linked Table of Contents.
Fed Convicted by Logic The intent and global scope of the banklords’ operation makes it difficult to beat them on their own turf. We must leave the mainstream media and avoid laws generated by a probably controlled Congress. We must stay reasonably within the prevailing law while remaining physically peaceful, if possible.
These stringent requirements, and the dangerously narrow path left to follow, fostered Inductive Cloud Chamber Reasoning. Known collisions of imaginary, invisible, money with a second, unknown force are studied. Known forces are introduced (induced) into the cloud chamber picture until matches are found. It is then considered highly probable that the unknown force has been identified.
Thus, using a reasoning process based on an accepted, scientific process, reasonable conclusions can be drawn. Forces can be identified with a high probability of accuracy. Probabilities are used for scientifically honesty, as well as legal protection. Common sense dictates that intellectual midgets should not carelessly accuse specific, nasty giants of dastardly deeds. For, whereas particles in a cloud chamber have no attorneys, nasty giants do. In this case, they have plenty of OUR money to hire many of the best. Legal tact is the only hope.
Could Have Known and Should Have Known Precedent set by a 1945 California case, California Reports. Lashley v. Koerber. 156 P.2d 441, 445, [vol] 26, [Calif Reports] c.2d [page] 83. It must include elected officials.
Constitution quote Article I - The Legislative Article. Powers Of Congress. Section 8. … The Congress shall have the Power … To coin Money, regulate the Value thereof, and of foreign Coin,
to emit Bills on the Credit of the United States; [Power to issue paper money was struck from the final draft.] [Congress is NOT given permission to let private bankers create money for profit.]
Ten False Promises
"While never written down, there were 10 promises made by those people lobbying the [Federal Reserve Act of 1913] through Congress."
1. "The Federal Reserve was to to operate entirely under the direction and control of the President and his appointees to the Board of Governors. [The opposite exists today.] This promise of control by directly elected official was forgotten almost immediately - in fact, there is serious question as to whether it was ever intended to remain intact, as a number of amendments to the bill were added to the original act, including removing the Secretary of the Treasury and the Comptroller of the Currency from the Board of Governors."
2. "Section 16 of the Act set out the Fed would pay our government interest for the privilege of printing our nation’s money. Seems like a logical business proposition. The catch was that the Act left this decision to the Board of Governors. It cannot be too much of a surprise today that the Board immediately elected not to pay the government interest. This is the very base of the problem of debt money." [Instead of paying us, they charge us.]
3. "Next, as the nation’s central bank, the Fed supporters promised that the Fed would provide free banking services for the government. Despite the fact that the Act provided the Fed to be able to use the credit of the United States without charge, the Fed began right away charging the government for bank services."
4. "One of the major reasons the Act garnered support was that the Fed supporters promised that the Fed would manage the nation’s money in such a way that the American dollar would be stable (keeping prices stable for the American businessman and helping to prevent boom and bust cycles). Instead, the manipulators have so devastated the dollar that it is worth only about 10 cents of the dollar of 1913."
5. "It was promised that the passage of the Act would free the U. S. from the control of Wall Street. Somehow, I think Congress should have seen this one coming. After all, it was the most powerful money interests from Wall Street that were pushing the bill, admittedly from behind the scenes.
"William G. McAdoo, who was Secretary of the Treasury under President Wilson, spoke candidly in his book, Crowded Years: the Reminiscences of William G. McAdoo, published in 1931. He wrote how impressed he was with the way the
bankers fought the Federal Reserve legislation, and every provision of the Federal Reserve Act, with the tireless energy of men fighting a forest fire. They said it was populistic, socialistic, half-baked, destructive, infantile, badly conceived and unworkable."However, he observed that when he talked privately with these same bankers it became apparent that
through all the haze and smoke of controversy, that the banking world was not really as much opposed to the bill as it pretended to be."6. "The new money system was supposed to prevent future depressions. Yet, many historians now write that the Fed itself was a deliberate engineer of the Great Depression of the 1930s and that they prolonged the Depression well beyond what it might have been had they net been involved."
7. "One of the most important promises was to save the farmer and the small businessman. This promise certainly would have secured many votes in Congress for passage of the bill. No other single promise has been so cruelly and deliberately broken. Hardest hit during the Great Depression were the farmers, the small businesses and the small banks as they failed and were picked up by large money interests at pennies on the dollar value. Recent comments by the Federal Reserve Chairman, Paul Volcker, to the effect that there are too many farmers in America today and that the economy would be healthier if a third of them failed, seem to indicate the continued disinterest of the Fed in the plight of the nation’s farmers."
8. "Because Congress feared the centralization of money power in New York City and the previously discussed influence of wall Street, it was promised that the system would remain decentralized and that each of the 12 branch Federal Reserve banks set up would be on equal footing.
"That promise soon went by the wayside and the New York City Federal Reserve Bank became the only permanent member of the Board of Governors of all the 12 Federal Reserve branches."
9. "The Federal Reserve was supposed to protect Americans from foreign money interests. Had that promise been kept, we would not today see the multi-national banks that have overlapping Boards of Directors with foreign nationals serving on the boards of American banks and vice versa. Certainly, the interests of the American public have not been protected from intrusion by the foreign bankers!"
10. "The final promise was that the Federal Reserve System would be able to supervise and inspect local banks and provide funds if those local banks had unexpected demands for payments. As no bank keeps 100% reserves, this was to protect the banks and the depositors from a "run" on the bank. They have kept this promise to a certain degree. Historically, only one large bank was allowed to fail during the Great Depression. However, some 9,000 small banks suspended payments and were not bailed out by the Fed. [The Fed has been a bad actor in this arena. ]
"During the Depression of the early 1980s (some called it a recession, but the depth of it was so great that I call it a depression) a number of banks ran into trouble. As bad investments, particularly in oil speculation and third would nation loans, went sour, more and more banks were on the endangered list. Supervision by state banking authorities and the fed left a great deal to be desired as demonstrated by the banking crises in Ohio and Maryland in early 1985." [Written in 1986.]
"Since [1986], dozens of small banks all across the nation have been merged with bigger banks to "save them". The message of the Great Depression was again learned. Small banks were expendable: big banks were not. When Continental Illinois got in to trouble, the Fed moved decisively to keep them from going under.
"Remember the major promises were to 1) end the boom and bust cycles, 2) provide a stable currency and 3) prevent farm foreclosures. Surely, no one in Congress could say these were bad goals. Yet, based on these very promises, when weighed in the balance of history or when judged by any objective standard, the Federal Reserve System is, at best, a colossal failure.
"At worst, it is a calculated fraud, an assault on the American people. It is designed to work against the best interests of the people and to favor the vast multi-national banking interests.
"As a history teacher, I will state unequivocally that when the history of this era is written, the Federal Reserve will be called the greatest scandal of all times; the greatest looting and plundering of any people in all history, except by armed conquest."
[Forest Glen Durland adds that perhaps the banking interests are responsible for the armed conquests. Way back in 1921, Henry Ford, Sr, stated that if we were to remove the power of money from the banklords, we would stop all wars. ]
Monetary Control Act of 1980
"In my view, this is one of the worst pieces of legislation ever passed by Congress. An obscure paragraph in the Act allows the Fed to monetize foreign debt.
"The purpose of the language was to allow the American taxpayer to be saddled
with the defaulting loans
made by private U. S. multi-national banks
to third world countries,
and thus bail out those big banks.
"Asked about this in the hearing prior to passage of the law, a Fed official said, in effect, ‘Oh well, we want it in there - maybe we will come to an emergency and have to use it sometime, but we probably won’t need to use it. That unnecessary and probably not to be used part of the Act was invoked first in 1981 when on April 21st a total of $11.2 million of foreign debt was monetized. Just a couple of months later, in June, it was reported that 66 more transactions had occurred and
a total of $4.3 billion of foreign debt had been monetized!
"I talked with former Congressman Ron Paul (who had been monitoring the foreign debt monetization and had published a newsletter where we got the information) and said, ‘Hey, Ron, you have to get out another update on that letter - get us some more information on what is happening.’ Congressman Paul then told me that since he published that letter,
the Fed would no longer tell him how much foreign debt
is being saddled on the American taxpayers!
"That is undoubtedly the most chilling comment I have ever heard on the Fed issue. Imagine a Congressman - and a member of the House Banking Committee at that - being told by a Fed official that he cannot have information. What arrogance! What complete confidence in the total control of the Fed and lack of control by the Congress, to whom the Constitution specifically gives the responsibility for our money.
"When a creation of Congress has become so powerful that they can tell Congress they will not answer a question from one of the elected representatives of our people, that affects us all. We have a problem; a very serious problem. "
Fed is private Banks create money out of nothing. [See Putting it Simply, Fed Reserve Bank of Boston, p 17.]
With the passage of the Federal Reserve Act of 1913 Congress gave the power to create and control money to private bankers. Money is now created by private bankers who charge the people interest for it, resulting in a national debt in the trillions of dollars. Forest Glen Durland maintains that Congress had no right to give away the people’s sovereign right to create debt free money. The existing national debt might be ruled unconstitutional.
The Fed has usurped such power that it answers to no one, not even our elected President and Congress. For practical purposes, the Fed is privately owned and privately operated in secret for private gain. [See ABCs of Money.]
As to the private nature of the Federal Reserve System, we have a ruling by the Ninth Circuit Court in San Francisco.
We do have a case that has established that the individual banks, themselves, are not a part of the government. That is Lewis v. United States, U.S. Court of Appeals, Ninth Circuit, April 19, 1982. In this decision, we find several ‘tests’ of what constitutes a federal agency. Quoting from that decision:‘a critical factor is existence of federal government control over "detailed physical performance" and "day to day operation" of an entity.’
‘Federal reserve banks receive no appropriated funds from Congress’
‘Unlike typical federal agencies, each bank is empowered to hire and fire employees at will. Bank employees do not participate in Civil Service Retirement System. They are covered by Workers’ compensation insurance, purchased by the bank, rather than the Federal Employees Compensation Act. Employees traveling on bank business are not subject to federal travel regulations and do not receive government discounts on lodging and services.’
In addition to the above court ruling, several other facts indicate private ownership:
1. Ninth Circuit Court ruling.
2. In 1979 Senator Riegle sued the Fed. That case stated: "The Reserve Banks are private corporations whose stock is owned by the member commercial banks within their districts."
3. The United States Government owns no stock in the Federal Reserve System. All stock is owned by private banks.
4. The Fed banks are not listed in the phone book under "government".
5. Most Fed employees are not paid with government checks.
6. The Fed does not have franking privileges (free postage).
7. A government agency would create money for the government free of charge. However, the Fed creates money out of nothing and loans it the United States Government for interest that has now accumulated to trillions of dollars of debt. The American taxpayers get the bill.
8. The Fed banks have no debt.
9. The Fed pays property taxes.
10. The Federal Reserve System is neither federal nor reserve, but is basically a federally chartered, private banking consortium.
11. There has never been an independent audit of the Fed.
Pyramid of Isolation The following illustation gives a graphic view of the invisible isolation the banklords choose to maintain. Also portrayed are their protective support services that reside in the middle level. Although nearly unbelievable, the people in those support services do not even realize what the banklords are actually forcing them to do.
Top level The Eye - elite banklords At the base level are we working people out here on the the ground.
At the middle level are the support services created through corrupt control. It is most probable that the billionaire banklords control Congress and the federal courts that control the laws, the White House that controls all federal fire power, and the mainstream media. All of these protective support services reside at the middle level with power unconstitutionally usurped from our government.
From their secluded vantage point, the billionare banklords run the world. With their control of money, they control everyone and everything. They accomplish this feat by tricking us common folks at the base to do all their work for them. We even pay all the bill, including a hefty fee to them. That is stupid of us. We even vote the middle level into office. That is even more stupid of us.
It should be easily seen that those billionaire banklords are sitting in a trap. If we common folks were to quit doing their work for them and demand our money back, those banklords would be isolated and at our disposal. What they have been doing is probably unconstitutional, so we even have our highest law on our side.
But we must wake up and take a clear look at that pyramid. Currently we people are so blinded and confused by the garble the Fed feeds us that we do not even know what is happening. The truth is that money is simple. Accordinging to the Basic Rule of Economics, money can not cost money. That says that there can be no private banks. Certainly there must not be any billionaire banklords running us to ruin.
So wake up and take your country back! Abolish the Federal Reserve System. Demand that our Congress create needed money and never borrow again. That will leave those "elite" billionaire banklords high and dry, waiting for our orders.
Invisible Documentation [I lost it. Will place it here when I find it. There is plenty.]
Documentation
Further documentation may be found in Figuring Out the Fed by Margaret Thoren, Truth In Money, PO Box 30, Chagrin Falls, OH 44022.
The national debt is unreal and may not exist. See "Shadow Partner"and the last page of "In the Beginning".
Food for thought: If the Federal Reserve System is part of our government, why do they charge us for our money?
See Unreal Contents and Docs for documentation and more info.
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