Lie #8 “The Federal Reserve will be Controlled by Congress

 I’m taking most of this from Judge Andrew P Napolitanos book, Lies The Government Told You. I highly recommend everyone to read this book, He covers many issues about how the Government has continue to lie.  I’m only going to give the basic background and highlights from this chapter of the book about the Federal Reserve. They must be using the idea of telling a lie enough times that it becomes the truth.

 The idea of the Federal Reserve was born in the era of 1910-1913 was the height of the Progressive Era in American History. Congress who would soon spearhead radical measures in how Senators  are elected and authorize a private held corporation to decide monetary policy of the United States without Oversight or accountability It justified its actions by two great lies (1) the Federal Reserve will be controlled by Congress; and (2) it will bring about economic stability and prosperity for the American people. They claimed with a straight face that it could exert control over a private corporation, does anybody think the Government has control of the Federal Reserve.

 Our Founding Fathers knew that the Government would need to issue currency and regulate money, yet they intended for it to be backed by gold or silver or a stable commodity.  The idea of a central bank wasn’t invented in the early 20th century, It was also the idea of Alexander Hamilton to have one.  Jefferson hampered this idea but Washington backed Hamilton, so the Bank of the United States was born.  The Bank only had a twenty year charter and was not renewed during Madison’s presidency.  The second bank of the United States was chartered in 1816 which spawned many small federal banks and lead to the events of 1910 and a very important train ride.

Legally Sanctioned Cartels

There was a fateful train ride in 1910 from Hoboken to Jekyll Island, a privately owned island off the coast of Georgia.  On this train was the most powerful people in banking at the time, Senator Nelson Aldrich, father-in-law fo John D Rockefeller, Frank Vanderlip, vice president of Rockefeller’s National City Bank of New York, the largest bank in America; Charles Norton, president of Morgan’s First National Bank of New York, Americas second largest bank; Henry Davison, senior partner of J. P. Morgan Company; Benjamin Strong, head of J. P Morgan’s Banker’s Trust Company; Paul Warburg, representative of the Rothschilde; and of course Abraham Andrew, the Assistant Secretary of the Treasury, ensuring the federal government would have some say in what happened. These men represented about a quarter of the entire world’s wealth at the time.

 They came together not for American people’s prosperity but to form a partnership that would secure their positions in the market.  In the Judges words, They formed a Legally Sanctioned Cartel and even gave money to Academics and Scholars to promote the supposedly sound banking system. The final hinderance would be if Taft won the next election and remained President, He was opposed and would veto this idea.  So they got Theodore Roosevelt to enter as an independent, they spent a bunch of money on his campaign and they split the vote.  Wilson won the election with only 45 percent of the popular vote, in a two-man race Taft in all accounts would have been elected. So from this moment forward the banks have been controlling our money, politicians and elections with nobody really able to stop them.

 When Wilson signed the Federal Reserve Act he said “supplant the dictatorship of the private banking institutions and stabilize the inflexibility of the national bank-note supplies.” This was supposed to last for only twenty years as well but FDR made it permanent, sealing our fate with the Federal Reserve. 

 The most common claim about the Federal Reserve is that it is accountable to the federal government because it it required to report to Congress twice a year regarding its activities. What the chairman reports to Congress and what the Federal Reserve actually occurs is very different. Do you know that the federal government has no direct control of the Federal Reserve? Do you know that the Federal Reserve isn’t audited? Did you know that they don’t even have to comply with a request for an audit from Congress? The chairman of the fed can say nearly anything he wants to Congress and they have no way to find out the truth about what he says. The monetary policy decisions made by the Fed are made at secret meetings, and Congress, as well as the public, are only made privy to brief reports released weeks later. Any transcripts made of the deliberations are destroyed. Every other government agency from the CIA and NSA, are required by law to maintain all documents and transcripts of their activities. Since the Federal Reserve is not a government agency, these laws don’t apply.

 So you can see that calling this the Federal Reserve is a joke in of itself, it isn’t Federal and doesn’t seem to have a Reserve. This is a monopoly of sorts, they control the money and there is no competition to compete against them. The Federal Reserve has gone unchecked for far too long, they in my opinion have weakened the dollar and not strengthen it. It’s time for it to end.

 Here is a story that Judge Napolitano included in this chapter of his book. It was a hot day in Las Vegas in May 2003 and Robert Kahre had the air-conditioning on full blast when the front door swung open and he was confronted with a gun pointed at his head.  Before he had time to even question he and more than twenty of his workers were handcuffed and held in the sweltering sun, while the IRS agents swarmed inside.  The IRS was unhappy with the way Mr. Kahre was paying his employees, he was paying them with US government-minted gold coins.  The coins had a face value of $50 dollars but the gold in them was actually worth 806 Federal Reserve dollars. There is no tax code regulations that distinguished between coin and paper money, Kahre and his workers paid taxes on the face value of the coins. So if you got one gold coin a week for work, you only made 2600 dollars in gold coins and would have to pay no taxes. They charged him and his employees with multiple charges but the jury never convicted them of any wrong doing.  I would call this using the system against them, good American ingenuity.

There is much more to this chapter and to the others, There is many different lies that the Government continues to do everyday.  Click the link to buy at Amazon or find it at your library or local bookstore. Lies The Government Told You

Liberty’s Warrior

Advertisements

About blained13

I'm from Mesa,AZ and very involved in local politics. I like to read, like just about all sports and also hunt/fish.
This entry was posted in Money and tagged , , , , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s