Federal Reserve is a positive thing - "Political Research Associates"

[realitycorrodes]

Hey Guys, my brother is a history teacher in England and I asked him to research the conspiracy theories talked about on this and other forums in regard to the Federal Reserve. Below is the link my brother sent me. I have cut and paste the actual article below the link. It seems to paint the Federal Reserve as a friendly entity. I was hoping someone with more economic and political insight would be able to decipher objectively whether the article is presenting a balanced view or whether it is cleverly using economic jibberish to confuse simple people into thinking the Federal Reserve Bank has our best interests at heart. If anyone could put forward some critical thinking in regard to the truth of its statements it would be greatly appreciated and perhaps the agenda of the "Political Research Associates" -their websites seems to be intent on contradicting every conspiracy theory mentioned on this forum.

http://www.publiceye.org/conspire/fl...l_Reserve.html

By: Edward Flaherty, Ph.D. Department of Economics College of Charleston, S.C.
Facts: Yes, the Federal Reserve banks are privately owned, but they are controlled by the publically-appointed Board of Governors. The Federal Reserve banks merely execute the monetary policy choices made by the Board. In addition, nearly all the interest the Federal Reserve collects on government bonds is rebated to the Treasury each year, so the government does not pay any net interest to the Fed.

Facts: No foreigners own any part of the Fed. Each Federal Reserve bank is owned exclusively by the participating commercial banks and S&Ls operating within the Federal Reserve bank's district. Individuals and non-bank firms, be they foreign or domestic, are not permitted by law to own any shares of a Federal Reserve bank. Moreover, monetary policy is controlled by the publically-appointed Board of Governors, not by the Federal Reserve banks.

Fact: Independent accounting firms conduct full financial audits of the Federal Reserve banks and the Board of Governors every year. The Fed is also subject to certain types of audits from the Government Accounting Office.

Facts: The Federal Reserve rebates its net earnings to the Treasury every year. Consequently, the interest the Treasury pays to the Fed is returned, so the money borrowed from the Fed has no net interest obligation for the Treasury. The government could print its own currency independent of the Fed, but there would be no effective safeguards against abuse of this power for political gain.

Facts: The Federal Reserve banks have only a small share of the total national debt (about 7%). Therefore, only a small share of the interest on the debt goes to the Fed. Regardless, the Fed rebates that interest to the Treasury every year, so the debt held by the Fed carries no net interest obligation for the government. In addition, it is Congress, not the Federal Reserve, who is responsible for the federal budget and the national debt.

Facts: Kennedy wrote E.O. 11,110 to phase out silver certificate currency, not to issue more of it. Records show Kennedy and the Federal Reserve were almost always in agreement on policy matters. He even signed legislation to give the Fed more authority to issue currency.

Facts: McFadden was incorrect regarding the Fed costing the government money. However, later economic analysis agrees with him that Federal Reserve policy blunders had a substantial role in causing the Depression. However, his implication that this was done deliberately has no basis in fact. Moreover, for a dozen years prior to his rant, McFadden had been the chairman of the House subcommittee that oversaw the Federal Reserve. Why didn't he do anything to reform or abolish the Fed while he had the chance?

Facts: The banking system is indeed able to create money with a mere computer keystroke. However, a bank's ability to create money is tied directly to the amount of reserves customers have deposited there. A bank must pay a competitive interest rate on those deposits to keep them from leaving to other banks. This interest expense alone is a substantial portion of a bank's operating costs and is de facto proof a bank cannot costlessly create money.

Fact: The term 'lawful money' does not refer to gold or silver coin, but to types of money which the government would permit banks to use when tabulating their reserves. These types of money included, but were not limited to, gold and silver coin.

BY: Edward Flaherty, Ph.D. Department of Economics College of Charleston, S.C.

Myth #1: The Federal Reserve Act of 1913 was crafted by Wall Street bankers and a few senators in a secret meeting.
Myth #2: The Federal Reserve Act never actually passed Congress. The Senate voted on the bill without a quorum, so the Act is null and void.
Myth# 3: The Federal Reserve Act and paper money are unconstitutional.
Myth# 4: The Federal Reserve is a privately owned bank.
Myth #5: The Federal Reserve is owned and controlled by foreigners.
Myth #6: The Federal Reserve has never been audited.
Myth #7: The Federal Reserve charges interest on the currency we use.
Myth #8: If it were not for the Federal Reserve charging the government interest, the budget would be balanced and we would have no national debt.
Myth #9: President Kennedy was assassinated because he tried to usurp the Federal Reserve's power. Executive Order 11,110 proves it.
Myth #10. The Legendary Tirade of Louis T. McFadden

[Lord Sidious]

This guy is running a snow job.
Every single note that the us borrows from the fed is interest bearing. How can that NOT cost them money?
Is it a coincidence that since the existence of the fed, the debt of the us corporation has grown bigger and bigger, but also faster.
The ''facts'' he presents are not worthy of a phd holder.

[Coaxial]

Everything this guy said is the standard "look at my left hand, but ignore my right hand"!
I could slam myth 1-10 in less time than it took him to lick the stamp to mail this crap.

[araucaria]

Paul Warburg himself admits to the secret meeting on Jekyll Island:

Eustace Mullins in Secrets of the Federal Reserve (quotes within quotes), http://www.whale.to/b/mullins5.html :
a financial writer named Bertie Charles Forbes (who later founded the Forbes Magazine; the present editor, Malcolm Forbes, is his son), wrote:
‘Picture a party of the nation’s greatest bankers stealing out of New York on a private railroad car under cover of darkness, stealthily hieing hundred of miles South, embarking on a mysterious launch, sneaking onto an island deserted by all but a few servants, living there a full week under such rigid secrecy that the names of not one of them was once mentioned lest the servants learn the identity and disclose to the world this strangest, most secret expedition in the history of American finance. I am not romancing; I am giving to the world, for the first time, the real story of how the famous Aldrich currency report, the foundation of our new currency system, was written . . . . […] He [Paul M. Warburg] more than any one man has made the system possible as a working reality.’ (p. 14)
[…]
Paul Warburg advanced at Jekyll Island the primary deception which would prevent the citizens from recognizing that his plan set up a central bank. (p. 19)
[…]
Paul Warburg later wrote a massive exposition of his plan, The Federal Reserve System, Its Origin and Growth [note: Paul Warburg, The Federal Reserve System, Its Origin and Growth, Volume I, p. 58, Macmillan, New York, 1930] of some 1750 pages, but the name ‘Jekyll Island’ appears nowhere in this text. (p. 20)
[…]
On page 60, Warburg writes, ‘The results of the conference were entirely confidential. Even the fact there had been a meeting was not permitted to become public.’ He adds in a footnote, ‘Though eighteen [sic] years have since gone by, I do not feel free to give a description of this most interesting conference concerning which Senator Aldrich pledged all participants to secrecy.’ (p. 21)
[…]
In my lectures throughout this nation, and in my appearances on many radio and television programs, I have sounded the toxin [sic, a very sick-sounding tocsin!] that the Federal Reserve System is not Federal; it has no reserves; and it is not a system at all, but rather, a criminal syndicate. From November, 1910, when the conspirators met on Jekyll Island, Georgia, to the present time, the machinations of the Federal Reserve bankers have been shrouded in secrecy. Today, that secrecy has cost the American people a three trillion dollar debt, with annual interest payments to these bankers amounting to some three hundred billion dollars per year, sums which stagger the imagination, and which in themselves are ultimately unpayable [1991 foreword, http://www.whale.to/b/mforeword.html]

[araucaria]

Reading Ron Chernow’s 700-page family biography, the Warburgs were all delightful creatures, including those that went mad because they didn’t like banking.

Here is a character suicide in James Warburg’s autobiography:
‘Twice I saw men jump out of Wall Street windows. Others shot themselves or had nervous breakdowns and heart attacks […] orgy of runaway capitalism […] no banker could in retrospect be proud of having participated to even the slightest extent in an era of disgraceful irresponsibility. Yet I must confess that I thoroughly enjoyed working hard and playing hard in these carefree, irresponsible years. I enjoyed building up my father’s bank and the old family firm. I enjoyed climbing the ladder to personal ‘success’, even though it was achieved in a context I now utterly deprecate.’ James P. Warburg, The Long Road Home: the Autobiography of a Maverick, New York, Doubleday and Company Inc., 1964, p. 88–89.

A game of snakes and ladders with no snakes, apparently.

[araucaria]

The Warburgs were German. The eldest son, Aby, gave up the business to become an outstanding art historian. ON his one visit to the US, he abandoned the snakes on Wall St to visit the Hopi Indians and discover the snake dance at the rainmaking ceremony at Oraibi

[conk]

Seems he inadvertantly switched the words fact and myth.

[ceetee9]

I'm certainly no expert on the FED and have done little research on them, but I just did a quick search on the first "fact" presented in the PRA article and it appears to be false.

The US Federal Reserve System is also partially governed by a board of governors. http://en.wikipedia.org/wiki/Board_of_governors

The Federal Reserve System's structure is composed of the presidentially appointed Board of Governors (or Federal Reserve Board)... http://en.wikipedia.org/wiki/Federal_Reserve_System

I will do some more checking of the presented "facts," but my initial impression is that if you can't even get fact #1 correct it is highly likely there are more "facts" that aren't. I would also highly recommend to anyone researching these "facts" that they check into the background of the PRA Board of Directors to get a sense of their motivations and how they may be biased.

[araucaria]

That Act maybe technically "null and void" but it's still in force after 98 years and that's no technicality

[Camilo]

This guy needs to WAKE UP!

[realitycorrodes]

Thanks Lord Sidious and everyone else for your comments - much appreciated. It certainly does not seem to make sense that the interest on the money loaned to the Treasury which the Treasury pays to the Fed "eventually" gets returned to the Treasury? My first thought is "if I give someone money only for them to give it straight back to me, what is the purpose? Unless of course there is some kind of magicians slight of hand going on while the money is being passed around OR "it simple ain't true!" I guess the Treasury will always be in debt as its borrowing money from the Fed and not paying it back....surely it would be a better system for the treasury to just print there own money out of thin air and not owe anyone. The dangers of a government misusing the ability to print money out of thin air is equal to the dangers of anyone printing the money out of thin air, especially a private company - but I guess we would hope the government if it was working properly at least should have checks and balances put in place by the people who had a say in voting that government into place - whereas I should not think the people would not have much say in the affairs of a private company - unless of course the Fed are controlled by the publically-appointed Board of Governors - assuming "publically-appointed" means the people had a say in these "appointments"?

I tried to look into the background of the "Political Research Association" to see what allegiances it has (Ford Foundation - they would have to be propogating ideas supported by the Ford Foundation one would speculate?) and on wikipedia it stated:

"PRA studies the U.S. political right wing, as well as white supremacists, and paramilitary organizations. It has a full-time staff of six. The Executive Director is Tarso Luis Ramos. Dr. Jean V. Hardisty was the director from 1981 to 2004. Chip Berlet is the group's senior analyst. Researchers include Pam Chamberlain and Kapya Kaoma.

PRA publishes a journal, The Public Eye, three times a year, which reports on specific and current movements or trends within the U.S. political Right, and also produces special reports, past examples of which include "Calculated Compassion: How the Ex-Gay Movement Serves the Right's Attacks on Democracy,"[1] authored by former PRA research analyst, Surina Khan," which details attacks on gays and lesbians, and "Decades of Distortion," which alleged scapegoating of welfare recipients.[2]

The group provides public speakers, and has staff on hand to answer queries from journalists, researchers, and activists. Its annual funding of approximately $700,000 per year comes from foundation grants, individual contributions, and the sale of research materials. Expenditures are directed toward staffing, general & administrative expenses, programs and fundraising.[3] Among its major donors are the Public Welfare Foundation and the Ford Foundation.

PRA is supported by a number of progressive and liberal activists, including Anne Braden of the Southern Organizing Committee, and Suzanne Pharr of the Highlander Research Center. Pharr has written that PRA "sets the standard for researchers and political analysts of integrity," and describes the group's research as "thorough, thoughtful, carefully researched, and presented within a broad context of understanding of the complex relationships and activities of the Right." [2]

Stanley Kurtz of the conservative magazine National Review described PRA's researchers as "conspiracy mongers" for a 1994 report on the religious right, and claims that PRA used guilt by association techniques to associate conservative Christians with theocratic Dominionism.[4] PRA responded to Kurtz by stating that the report was "a serious study of the Dominionist Christian Reconstructionist movement."[5]"


Facts: The Federal Reserve rebates its net earnings to the Treasury every year. Consequently, the interest the Treasury pays to the Fed is returned, so the money borrowed from the Fed has no net interest obligation for the Treasury. The government could print its own currency independent of the Fed, but there would be no effective safeguards against abuse of this power for political gain.

Facts: Yes, the Federal Reserve banks are privately owned, but they are controlled by the publically-appointed Board of Governors. The Federal Reserve banks merely execute the monetary policy choices made by the Board. In addition, nearly all the interest the Federal Reserve collects on government bonds is rebated to the Treasury each year, so the government does not pay any net interest to the Fed.

[realitycorrodes]

Hey Coaxial, thanks for your comment. I am not that good at this political/economical showmanship...I tend to get distracted by the left hand. I would really appreciate if you could expand on slamming the myths - it would help me get a better grasp on this stuff.

[realitycorrodes]

Thanks Araucaria, I really appreciate the references - it all resonates with me on an intuitive level, as I have done my fair share of contemplating myself and realised the darkness that lies within myself which aligns with the"uncompassionate" ways of the people addicted to power who invented the Federal Reserve. However the people who have no knowledge of themselves cannot believe that their banks and governments do not have their best interest at heart and always demand way more references to prove this than they themselves wish to present from their "ready made dinners" served up to them in the Guardian like newspapers they program themselves with it - in order of course to feel safe and fit in with the majority of the herd (fear being the primary motivator for not daring to think for oneself/contemplate oneself - holographs being the key to intuition).

[realitycorrodes]

Hey Ceetee9, that's the kind of light I was hoping to be shed on this clever word play.

It states "controlled by the PUBLICALLY-APPOINTED Board of Governors" but in reality it is controlled by "PRESIDENTIALLY APPOINTED Board of Governors" - does not sound like the people have a say in who gets to sit in the chairs of the Board of Governors.

[Maia Gabrial]

I understand that the Hopis don't share their sacred and secret dances and ceremonies with anyone outside the tribe....So, this has to be a lie that they showed him the snake dance....

[<8>]

Federal Reserve system was created by international banking families such as the Rothschilds, Warburgs and Rockefellers.
This system was instituted gradually, starting with the Civil War and culminating with the fraudulent passage of the Federal Reserve Act in 1913.

The passage of the Federal Reserve Act was unconstitutional because 1) the US Constitution prohibited "bills of credit" (i.e., paper notes) and 2) the US Constitution would have to be amended to go off the silver and gold coin standard for money. The US Constitution, the supreme Law of the Land, can only be amended pursuant to Article V.

The Federal Reserve is also a monopoly--in a country where monopolies are supposed to be illegal. The IRS deposits people's income tax checks directly in the Federal Reserve banks--not in the united States Treasury. Therefore, the IRS, an unconstitutional entity, is merely the collection agency for the international gangsters ....eeeee sorry..(banksters).

[enfoldedblue]

“It is well enough that people of the nation do not understand our banking and monetary system,for if they did,I believe there would be a revolution before tomorrow morning.” -Henry Ford


Maybe you could ask him to explain this:

http://www.businessinsider.com/feds-...of-life-2011-7

http://sanders.senate.gov/newsroom/n...3-62060dcbb3c3

I know very little about economics...but this certainly doesn't seem to fit with your brother's take


LOVE ALLways, c

[Lefty Dave]

The only thing wrong with your post is....substitute the word myth where you used the word facts, and vice-versa, and you and your brother nailed it !!!!

[mod-edit: When I first read your reply, Lefty, I did not know right away which post you were responding to. Looking back, it is now clear: you were responding to the first post in the thread. Now you comment makes excellent sense. Thanks. -Paul.]

[Lord Sidious]

If they are speaking about democracy in relation to the system in america, there is a tip off for you.
America is meant to be a republic, anyone speaking of a democracy is either a nugget or they are in on the plans.
Either way, carrot em, don't quote em.

[realitycorrodes]

Hi Guys, what I have below is what I am after. An accountant friend of mine (who understands the banking system better than I), has made comments through out the article with references. If any one else can add more info with references the better. I sense that the more we all understand this banking system, the more we will be able to convince others.

--------------------------------------------------------------------------------------------------------------------------

I appreciate your brother, Dr. Flaherty for the opportunity to address these issues—
at least from my research and conclusions—
we all draw our own conclusions from our own research—
so no matter, what, we conclude and whether I agree or not with the
essay as presented…

there is no doubt that there is some very dark, and strange things afoot concerning
the Federal Reserve, its history, actions, and where we are now—
and more importantly, where we are headed.

BY: Edward Flaherty, Ph.D. Department of Economics College of Charleston, S.C.

Myth #1: The Federal Reserve Act of 1913 was crafted by Wall Street bankers and a few senators in a secret meeting.
Myth #2: The Federal Reserve Act never actually passed Congress. The Senate voted on the bill without a quorum, so the Act is null and void.
Myth# 3: The Federal Reserve Act and paper money are unconstitutional.
Myth# 4: The Federal Reserve is a privately owned bank.
Myth #5: The Federal Reserve is owned and controlled by foreigners.
Myth #6: The Federal Reserve has never been audited.
Myth #7: The Federal Reserve charges interest on the currency we use.
Myth #8: If it were not for the Federal Reserve charging the government interest, the budget would be balanced and we would have no national debt.
Myth #9: President Kennedy was assassinated because he tried to usurp the Federal Reserve's power. Executive Order 11,110 proves it.
Myth #10. The Legendary Tirade of Louis T. McFadden




Facts: Yes, the Federal Reserve banks are privately owned, but they are controlled by the publically-appointed Board of Governors. The Federal Reserve banks merely execute the monetary policy choices made by the Board. In addition, nearly all the interest the Federal Reserve collects on government bonds is rebated to the Treasury each year, so the government does not pay any net interest to the Fed.

Lewis v. United States, 680 F.2d 1239 (9th Cir. 1982)
The court stated “Examining the organization and function of the Federal Reserve Banks, and applying the relevant factors, we conclude that the Reserve Banks are not federal instrumentalities for purpose of the FTCA, but are independent, privately owned and locally controlled corporations.”
“The stockholding commercial banks elect two thirds of each Bank’s nine member board of directors.” –which means that the private commercial banks in a 6-3
majority on the board, control the policy of each Federal Reserve Bank.

http://nesara.org/court_summaries/le...ted_states.htm
http://www.globalresearch.ca/index.p...xt=va&aid=8518



Facts: No foreigners own any part of the Fed. Each Federal Reserve bank is owned exclusively by the participating commercial banks and S&Ls operating within the Federal Reserve bank's district. Individuals and non-bank firms, be they foreign or domestic, are not permitted by law to own any shares of a Federal Reserve bank. Moreover, monetary policy is controlled by the publically-appointed Board of Governors, not by the Federal Reserve banks.

Read
http://www.apfn.net/Doc-100_bankruptcy27.htm

The charter for the Federal Reserve Bank expires in December of 2012 and requires a majority of our legislators in order to be rechartered. That is why this thesis is timely. We, the People must prevent this from happening.
“The shareholders of these banks which own the stock of the Federal Reserve Bank of New York are the people who have controlled our political and economic destinies since 1914. They are the Rothschilds, Lazard Freres (Eugene Mayer), Israel Sieff, Kuhn Loeb Company, Warburg Company, Lehman Brothers, Goldman Sachs, the Rockefeller family, and the J.P. Morgan interests.”
—Eustace Mullins
“In the US today, we have in effect two governments. We have the duly constituted government, then we have an independent, uncontrolled and uncoordinated government in the Federal Reserve, operating the money powers which are reserved to Congress by the Constitution.”
—WRIGHT PATMAN
Congressman D- TEXAS September 29, 1941

Lots of info here about the FR and its “owners” and corporate controlling interests…
http://centre.telemanage.ca/links.ns...256FA500785E3D

http://centre.telemanage.ca/links.ns...2568E000613B47



Fact: Independent accounting firms conduct full financial audits of the Federal Reserve banks and the Board of Governors every year. The Fed is also subject to certain types of audits from the Government Accounting Office.
Partially correct…
CONSPICUOUSLY ABSENT and EXEMPT from the GAO's authority is the AUTHORITY to address one of the concerns of GREATEST importance to people who do NOT trust the Federal Reserve and that is the Foreign ANGLE.
However, the GAO does not have complete access to all aspects of the Federal Reserve System. The Federal Banking Agency Audit Act of 1978 stipulates the following areas are to be excluded from GAO inspections:

FEDERAL BANKING AGENCY AUDIT ACT of 1978 ----------------------------------------
The following areas are to be EXCLUDED from GAO INSPECTION:
(1) transactions for or with a foreign central bank, government of a foreign country, or nonprivate international financing organization;
(2) deliberations, decisions, or actions on monetary policy matters, including discount window operations, reserves of member banks, securities credit, interest on deposits, open market operations;
(3) transactions made under the direction of the Federal Open Market Committee; or
(4) a part of a discussion or communication among or between members of the Board of Governors and officers and employees of the Federal Reserve System related to items (1), (2), or (3). (3)
-----------------------------------------------------------
Notice how all foreign dealings are EXEMPT from GAO inspection.
http://www.w3f.com/patriots/audited.html



Facts: The Federal Reserve rebates its net earnings to the Treasury every year. Consequently, the interest the Treasury pays to the Fed is returned, so the money borrowed from the Fed has no net interest obligation for the Treasury. The government could print its own currency independent of the Fed, [JFK tried and did issue some $2 U.S. Treasury Notes in 1963 and he was assassinated in November 1963.]

but there would be no effective safeguards against abuse of this power for political gain.

Facts: The Federal Reserve banks have only a small share of the total national debt (about 7%). Therefore, only a small share of the interest on the debt goes to the Fed. Regardless, the Fed rebates that interest to the Treasury every year, so the debt held by the Fed carries no net interest obligation for the government. In addition, it is Congress, not the Federal Reserve, who is responsible for the federal budget and the national debt.
This doesn’t make any sense at all, if the FED rebates the interest to the Treasury, then “why” do they charge interest at all? http://edbrownextendedentries.blogsp...ht-patman.html [also, Wright Patman, House, Sept. 29, 1941, Congressional Record, p. 7583 ]

You will see if you read Wright Patman’s book.
Congressman Wright Patman, House Banking Committee, complained about this interest charging, and in his book, he mentions that the FR collects the interest twice before marking the debt paid, upon
interviewing Marriner Eccles. of the FRB, !1958.

"The dollar represents a one dollar debt to the
Federal Reserve System. The Federal Reserve Banks
create money out of thin air to buy Government Bonds
from the U.S. Treasury ... and has created out of
nothing a ... debt which the American people are
obliged to pay with interest."

--Congressman Wright Patman

Facts: Kennedy wrote E.O. 11,110 to phase out silver certificate currency, not to issue more of it. Records show Kennedy and the Federal Reserve were almost always in agreement on policy matters. He even signed legislation to give the Fed more authority to issue currency.

It may have given the FED some more authority, and it allowed for the redemption of Federal Reserve silver-certificates but it also allowed the President, JFK to start issuing U.S. TREASURY Notes
against actual Treasury-owned silver in its vauts—
all in an attempt to place the issuance of money & credit back into the hands of the U.S. Treasury—
going so far as to issue the bills, starting with $2 bill (I have one) and then working up the system—trying to stop paying interest to the FED.

On June 4, 1963, a little known attempt was made to strip the Federal Reserve Bank of its power to loan money to the government at interest. On that day President John F. Kennedy signed Executive Order No. 11110 that returned to the U.S. government the power to issue currency, without going through the Federal Reserve. Mr. Kennedy's order gave the Treasury the power "to issue silver certificates against any silver bullion, silver, or standard silver dollars in the Treasury." This meant that for every ounce of silver in the U.S. Treasury's vault, the government could introduce new money into circulation. In all, Kennedy brought nearly $4.3 billion in U.S. notes into circulation. The ramifications of this bill are enormous.
Executive Order 11110
AMENDMENT OF EXECUTIVE ORDER NO. 10289 AS AMENDED, RELATING TO THE PERFORMANCE OF CERTAIN FUNCTIONS AFFECTING THE DEPARTMENT OF THE TREASURY. By virtue of the authority vested in me by section 301 of title 3 of the United States Code, it is ordered as follows:
SECTION 1. Executive Order No. 10289 of September 19, 1951, as amended, is hereby further amended - (a) By adding at the end of paragraph 1 thereof the following subparagraph (j): "(j) The authority vested in the President by paragraph (b) of section 43 of the Act of May 12, 1933, as amended (31 U.S.C. 821 (b)), to issue silver certificates against any silver bullion, silver, or standard silver dollars in the Treasury not then held for redemption of any outstanding silver certificates, to prescribe the denominations of such silver certificates, and to coin standard silver dollars and subsidiary silver currency for their redemption," and (b) By revoking subparagraphs (b) and (c) of paragraph 2 thereof. SECTION 2. The amendment made by this Order shall not affect any act done, or any right accruing or accrued or any suit or proceeding had or commenced in any civil or criminal cause prior to the date of this Order but all such liabilities shall continue and may be enforced as if said amendments had not been made.
JOHN F. KENNEDY THE WHITE HOUSE, June 4, 1963


Facts: McFadden was incorrect regarding the Fed costing the government money. However, later economic analysis agrees with him that Federal Reserve policy blunders had a substantial role in causing the Depression. However, his implication that this was done deliberately has no basis in fact. Moreover, for a dozen years prior to his rant, McFadden had been the chairman of the House subcommittee that oversaw the Federal Reserve. Why didn't he do anything to reform or abolish the Fed while he had the chance?

Congressman McFadden did try to get reforms, just like Congressman Wright Patman tried for 30 years.
There were several attempts on McFadden’s life.
http://www.afn.org/~govern/mcfadden.html

Facts: The banking system is indeed able to create money with a mere computer keystroke. However, a bank's ability to create money is tied directly to the amount of reserves customers have deposited there. A bank must pay a competitive interest rate on those deposits to keep them from leaving to other banks. This interest expense alone is a substantial portion of a bank's operating costs and is de facto proof a bank cannot costlessly create money.
Nevertheless, it is a fractional reserve system of ten-to-one and with the removal of the 1933 Glass-Steagall Act and its repeal in 1999 by the Gramm–Leach–Bliley Act, among other things the
corrupted banking system has brought the whole world to its economic knees, and that is before we deal with the unregulated quadrillions of notional-value derivative bets between them all and
corporations.


Fact: The term 'lawful money' does not refer to gold or silver coin, but to types of money which the government would permit banks to use when tabulating their reserves. These types of money included, but were not limited to, gold and silver coin. Right it was not referring to gold & silver coin as defined by the Constitution but rather that it was
“Lawful money”—that is—
”LEGAL TENDER FOR ALL DEBTS PUBLIC & PRIVATE because they have to have the People to accept the Federal Reserve Notes—after the banking law changes and
gold confiscation in 1933.

Further suggestions…
would be reading (not necessarily in this order) –

Antony C. Sutton’s writings-

The Federal Reserve Conspiracy
http://www.amazon.com/exec/obidos/AS.../trineday0e-20

America’s Secret Establishment
http://www.antonysutton.com/

Eustace Mullins writings…

The Secrets of the Federal Reserve
http://www.amazon.com/Secrets-Federa...ref=pd_sim_b_7
(I think this is available online digitally, or you can email me and I might have a copy of it.)

G. Edward Griffin
Creature from Jeykll Island
http://www.amazon.com/s/ref=nb_sb_no...and+&x=14&y=22

Here is an great interview with Eustace Mullins—
definitely worth watching…
I see it as a great background history lesson that, of course, we would never get in
the ‘official’ school textbooks.

Bobby Lee: Eustace Mullins [1of4]
http://www.youtube.com/watch?v=564iw...eature=related

Bobby Lee: Eustace Mullins [2of4]
http://www.youtube.com/watch?v=UaGc_ffa_FY&NR=1

Bobby Lee: Eustace Mullins [3of4]
http://www.youtube.com/watch?v=35ROU...eature=related

Bobby Lee: Eustace Mullins [4of4]
http://www.youtube.com/watch?v=n5cHp...eature=related


I have more references, but this is enough, from my viewpoint.

Cheers,
Stan

PS: Issues not addressed here, but very important are the conclusions of the following:

1. the Emergency Powers Statutes-
"In this 1973 official report, the U.S. Senate admits that the Emergency Powers given to the President under the pretense of the National Emergency of 1933 have remained in force and that the normal function of the Federal government has been suspended. "
--The Patrick Henry Foundation for Common Law Studies



2. 09 March 1933 - In Executive Orders EO-6073, EO-6102, EO-6111 and
EO-6260, the United States was declared BANKRUPT.
The receivers of the United States Bankruptcy are the International Bankers, via the United Nations, the World Bank and the International Monetary Fund. All United States Offices, Officials, and Departments are now operating within a de facto status in name only under Emergency War Powers. With the Constitutional Republican form of Government now dissolved, the receivers of the Bankruptcy have adopted a new form of government for the United States. This new form of government is known as a Democracy, being an established Socialist/Communist order under a new governor for America. This act was instituted and established by transferring and/or placing the Public Law 94-564, page 8, Section H.R. 13955 reads in part: "The U.S. Secretary of Treasury receives no compensation for representing the United States?
http://www.apfn.net/Doc-100_bankruptcy.htm

3. Which also brings us to the mysterious E.S.F.--(a vast slush fund.)
Exchange Stabilization Fund—
Controlled by the Sec. of the Treasury, because it deals with international finance and it must be so, essentially because of item #2 above whereby
Sec. of the Treasury is the U.S. Representative to the receivership to the I.M.F. / B.I.S. The E.S.F. handles all international finance matters. This video defends the Federal
Reserve and points the finger of the financial problems to the E.S.F. actions. I think this may be a crack in understanding the situation—especially based on Item #2.
http://www.youtube.com/watch?v=2ssrc...layer_embedded
Narrated and posted by the (self-claimed) Great Grandson of Frank Vanderflip.

I believe there are FIVE parts to this ESF video revelation.

[I have not watched all these videos, and am withholding further judgment on this theory, at this time.]


Cheers,
Stan