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semjase
Member
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Posted: Sun Mar 18th, 2007 03:08 pm |
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Who owns the Federal Reserve Bank?
A phone conversation about the unseen operations of the Federal Reserve System -- Andrew Winkler
The following is a conversation with Mr. Ron Supinski of the Public Information Department of the San Francisco Federal Reserve Bank.
This is an actual transcript of that conversation.
CALLER: Mr. Supinski, does my country own the Federal Reserve System?
MR. SUPINSKI: We are an agency of the government.
CALLER: That's not my question. Is it owned by my country?
MR. SUPINSKI: It is an agency of the government created by congress.
CALLER: Is the Federal Reserve a Corporation?
MR. SUPINSKI: Yes.
CALLER: Does my government own any of the stock in the Federal Reserve?
MR. SUPINSKI: No, it is owned by the member banks.
CALLER: Are the member banks private corporations?
MR. SUPINSKI: Yes.
CALLER: Are Federal Reserve Notes backed by anything?
MR. SUPINSKI: Yes, by the assets of the Federal Reserve but, primarily by the power of congress to lay tax on the people.
CALLER: Did you say, by the power to collect taxes is what backs Federal Reserve Notes?
MR. SUPINSKI: Yes.
CALLER: What are the total assets of the Federal Reserve?
MR. SUPINSKI: The San Francisco Bank has $36 Billion in assets.
CALLER: What are these assets composed of?
MR. SUPINSKI: Gold, the Federal Reserve Bank itself and government securities.
CALLER: What value does the Federal Reserve Bank carry gold per oz. on their books?
MR. SUPINSKI: I don't have that information but the San Francisco Bank has $1.6 billion in gold.
CALLER: Are you saying the Federal Reserve Bank of San Francisco has $1.6 billion in gold, the bank itself and the balance of the assets is government securities?
MR. SUPINSKI: Yes.
CALLER: Where does the Federal Reserve get Federal Reserve Notes from?
MR. SUPINSKI: They are authorized by the U.S. Treasury.
CALLER: How much does the Federal Reserve pay for a $10 Federal Reserve Note?
MR. SUPINSKI: Fifty to seventy cents (0.50¢ to 0.70¢).
CALLER: How much do they pay for a $100.00 Federal Reserve Note?
MR. SUPINSKI: The same fifty to seventy cents (0.50¢ to 0.70¢).
CALLER: To pay only 0.50¢ for a US $100.00 dollar bill is a tremendous gain, isn't it?
MR. SUPINSKI: Yes.
CALLER: According to the US Treasury, the Federal Reserve pays $20.60 per 1,000 denomination or a little over two cents for a $100.00 bill, is that correct?
MR. SUPINSKI: That is probably close.
CALLER: Doesn't the Federal Reserve use the Federal Reserve Notes that cost about two cents each to purchase U.S. Treasury Bonds from the government?
MR. SUPINSKI: Yes, but there is more to it than that.
CALLER: Basically, that is what happens?
MR. SUPINSKI: Yes, basically you are correct.
CALLER: How many Federal Reserve Notes are in circulation?
MR. SUPINSKI: $263 billion and we can only account for a small percentage.
CALLER: Where did they go?
MR. SUPINSKI: Peoples mattress, buried in their back yards and illegal drug money.
CALLER: Since the debt is payable in Federal Reserve Notes, how can the $4 trillion national debt be paid-off with the total Federal Reserve Notes in circulation?
MR. SUPINSKI: I don't know.
CALLER: If the Federal Government would collect every Federal Reserve Note in circulation would it be mathematically possible to pay the $4 trillion national debt?
MR. SUPINSKI: No.
CALLER: Am I correct when I say, $1 deposited in a member bank $8 can be lent out through Fractional Reserve Policy?
MR. SUPINSKI: About $7.
CALLER: Correct me if I am wrong but, $7 of additional Federal Reserve Notes were never put in circulation.
For lack of better words they were "created out of thin air" in the form of credits and the two cents per denomination were not paid either.
In other words, the Federal Reserve Notes were not physically printed but, in reality were created by a journal entry and lent at interest.
Is that correct?
MR. SUPINSKI: Yes.
CALLER: Is that the reason there are only $263 billion Federal Reserve Notes in circulation?
MR. SUPINSKI: That is part of the reason.
CALLER: Am I mistaking that when the Federal Reserve Act was passed (on Christmas Eve) in 1913, it transferred the power to coin and issue our nation's money and to regulate the value thereof from Congress to a Private corporation.
And my country now borrows what should be our own money from the Federal Reserve (a private corporation) plus interest.
Is that correct and if so, the debt can never be paid off under the current money system?
MR. SUPINSKI: Basically, yes.
CALLER: I smell a rat, do you?
MR. SUPINSKI: I am sorry, I can't answer that, I work here.
CALLER: Has the Federal Reserve ever been independently audited?
MR. SUPINSKI: We are audited.
CALLER: Why is there a current House Resolution 1486 calling for a complete audit of the Federal Reserve by the GAO and why is the Federal Reserve resisting?
MR. SUPINSKI: I don't know.
CALLER: Does the Federal Reserve regulate the value of Federal Reserve Notes and interest rates?
MR. SUPINSKI: Yes.
CALLER: Explain how the Federal Reserve System can be Constitutional if, only the Congress of the US, which comprises of the Senate and the House of representatives has the power to coin and issue our money supply and regulate the value thereof? (Article 1 Section 1 and Section
Nowhere, in the Constitution does it give Congress the power or authority to transfer any powers granted under the Constitution to a private corporation or, does it?
MR. SUPINSKI: I am not an expert on constitutional law. I can refer you to our legal department.
CALLER: I can tell you I have read the Constitution. It does NOT provide that any power granted can be transferred to a private corporation. Doesn't it specifically state, all other powers not granted are reserved to the States and to the citizens?
Does that mean to a private corporation?
MR. SUPINSKI: I don't think so, but we were created by Congress.
CALLER: Would you agree it is our country and it should be our money as provided by our Constitution?
MR. SUPINSKI: I understand what you are saying.
CALLER: Why should we borrow our own money from a private consortium of bankers?
Isn't this why we had a revolution, created a separate sovereign nation and a Bill of Rights?
MR. SUPINSKI: (Declined to answer).
CALLER: Has the Federal Reserve ever been declared constitutional by the Supreme Court?
MR. SUPINSKI: I believe there have been court cases on the matter.
CALLER: Have there been Supreme Court Cases?
MR. SUPINSKI: I think so, but I am not sure.
CALLER: Didn't the Supreme Court declare unanimously in A.L.A. Schechter Poultry Corp. vs. US and Carter vs. Carter Coal Co. the corporative-state arrangement an unconstitutional delegation of legislative power?
("The power conferred is the power to regulate. This is legislative delegation in its most obnoxious form; for it is not even delegation to an official or an official body, presumptively disinterested, but to private persons." Carter vs. Carter Coal Co...)
MR. SUPINSKI: I don't know, I can refer you to our legal department.
CALLER: Isn't the current money system a house of cards that must fall because, the debt can mathematically never be paid-off?
MR. SUPINSKI: It appears that way.
I can tell you have been looking into this matter and are very knowledgeable. However, we do have a solution.
CALLER: What is the solution?
MR. SUPINSKI: The Debit Card.
CALLER: Do you mean under the EFT Act (Electronic Funds Transfer)?
Isn't that very frightening, when one considers the capabilities of computers?
It would provide the government and all it's agencies, including the Federal Reserve such information as: You went to the gas station @ 2:30 and bought $10.00 of unleaded gas @ $1.41 per gallon and then you went to the grocery store @ 2:58 and bought bread, lunch meat and milk for $12.32 and then went to the drug store @ 3:30 and bought cold medicine for $5.62.
In other words, the government would know where we go, when we went, how much we paid, how much the merchant paid and how much profit he made.
Under the EFT they will literally know everything about us. Isn't that kind of scary?
MR. SUPINSKI: Yes, it makes you wonder.
CALLER: I smell a GIANT RAT that has overthrown my constitution. Aren't we paying tribute in the form of income taxes to a consortium of private bankers?
MR. SUPINSKI: I can't call it tribute, it is interest.
CALLER: Haven't all elected officials taken an oath of office to preserve and defend the Constitution from enemies both foreign and domestic? Isn't the Federal Reserve a domestic enemy?
MR. SUPINSKI: I can't say that.
CALLER: Our elected officials and members of the Federal Reserve are guilty of aiding and abetting the overthrowing of my Constitution and that is treason. Isn't the punishment of treason death?
MR. SUPINSKI: I believe so.
CALLER: Thank you for your time and information and if I may say so, I think you should take the necessary steps to protect you and your family and withdraw your money from the banks before the collapse. I am.
MR. SUPINSKI: It doesn't look good.
CALLER: May God have mercy on the souls who are behind this unconstitutional and criminal act called the Federal Reserve. When the ALMIGHTY MASS awakens to this giant hoax, they will not take it with a grain of salt. It has been a pleasure talking to you and I thank you for your time. I hope you will take my advice before it does collapse.
MR. SUPINSKI: Unfortunately, it does not look good.
CALLER: Have a good day and thanks for your time.
MR. SUPINSKI: Thanks for calling.
http://www.wikiprotest.com/index.php?title=A_Phone_Call_With_The_Federal_Reserve
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semjase
Member
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Posted: Sun Mar 18th, 2007 03:09 pm |
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A new animated show is quite enlightening on the modern banking system:
http://video.google.com/videoplay?docid=-9050474362583451279&hl=en
For those with more time on your hands, you might want to check out "The Money Masters":
http://video.google.com/videoplay?docid=-8753934454816686947&q=money+masters&hl=en
http://video.google.com/videoplay?docid=-2665915773877500927&q=money+masters&hl=en
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George Aligator
Member
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Posted: Sun Mar 18th, 2007 04:05 pm |
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| Thank you for introducing this fascinating bit of American governmental lore. I used to teach a course in the history of the American economy and when we got to the Federal Reserve, my students would always say something like, "that can't be correct - I mean, that isn't legal is it?" Niney-nine percent of our citizens have no idea how the system works, but when they find out, they see it as a gigantic scam.
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PATruth2
Member
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Posted: Sun Mar 18th, 2007 04:22 pm |
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Welcome back Semjase.
Here is one explanation of the Federal Reserve Bank.
http://www.federalreserveeducation.org/Teachers/faq/faq.cfm
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semjase
Member
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Posted: Sun Mar 18th, 2007 04:29 pm |
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PATruth2 wrote: Welcome back Semjase.
Here is one explanation of the Federal Reserve Bank.
http://www.federalreserveeducation.org/Teachers/faq/faq.cfm
Thank you. Good to be back. But your source doesn't quite tell the whole story...
"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
"Some people think the Federal Reserve Banks are the United States government's institutions. They are not government institutions. They are private credit monopolies which prey upon the people of the United States for the benefit of themselves and their foreign swindlers" -- Congressional
Record 12595-12603 -- Louis T. McFadden, Chairman of the Committee on Banking and Currency (12 years) June 10, 1932
"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 modern banking system manufactures money out of nothing. The process is perhaps the most astounding piece of sleight of hand that was ever invented. Banking was conceived in iniquity and born in sin... Bankers own the earth. Take it away from them but leave them the power to create money, and, with a flick of the pen, they will create enough money to buy it back again... Take this great power away from them and all the great fortunes like mine will disappear and they ought to disappear, for then this would be a better and happier world to live in... But, if you want to be the slaves of the bankers and pay the cost of your own slavery, then let bankers continue to create money and control credit."
- Sir Josiah Stamp, Governor of the Bank of England in the 1920s and the second richest man in Britain in the 1920's, speaking at the University of Texas in 1927.
-Mr. Eccles, former Chairman of the Federal Reserve Bank was asked by Patman,"how did you get the money to buy these two billion dollars of government bonds." Eccles replied, " We created it." "Out of what?" Patman asked. Eccles said, "Out of our right to issue credit money."
"The entire taxing and monetary systems are hereby placed under the U.C.C. (Uniform Commercial Code)" -- The Federal Tax Lien Act of 1966
"Most Americans have no real understanding of the operation of the international money lenders. The accounts of the Federal Reserve System have never been audited. It operates outside the control of Congress and manipulates the credit of the United States" -- Sen. Barry Goldwater (Rep. AR)
"It is well that the 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
"[Every circulating FRN] represents a one dollar debt to the Federal Reserve system." -- Money Facts, House Banking and Currency Committee
"A great industrial nation is controlled by it's system of credit. Our system of credit is concentrated in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated governments in the world--no longer a government of free opinion, no longer a government by conviction and vote of the majority, but a government by the opinion and duress of small groups of dominant men." --President Woodrow Wilson
"We are completely dependant on the commercial banks. Someone has to borrow every dollar we have in circulation, cash or credit. If the banks create ample synthetic money we are prosperous; if not, we starve. We are absolutely without a permanent money system.... It is the most important subject intelligent persons can investigate and reflect upon. It is so important that our present civilization may collapse unless it becomes widely understood and the defects remedied very soon." --Robert H. Hamphill, Atlanta Federal Reserve Bank
"The Federal Reserve banks, while not part of the government,..." -- United States budget for 1991 and 1992 part 7, page 10
"The Federal Reserve bank buys government bonds without one penny..." -- Congressman Wright Patman, Congressional Record, Sept 30, 1941
"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, incidentally, 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 production. 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
"Neither paper currency nor deposits have value as commodities, intrinsically, a 'dollar' bill is just a piece of paper. Deposits are merely book entries." -- Modern Money Mechanics Workbook, Federal Reserve Bank of Chicago, 1975
"The financial system has been turned over to the Federal Reserve Board. That Board administers the finance system by authority of a purely profiteering group. The system is Private, conducted for the sole purpose of obtaining the greatest possible profits from the use of other people's money" -- Charles A. Lindbergh Sr., 1923
"When you or I write a check there must be sufficient funds in out account to cover the check, but when the Federal Reserve writes a check there is no bank deposit on which that check is drawn. When the Federal Reserve writes a check, it is creating money." -- Boston Federal Reserve Bank
"There is a distinction between a 'debt discharged' and a debt 'paid'. When discharged, the debt still exists though divested of it's charter as a legal obligation during the operation of the discharge, something of the original vitality of the debt continues to exist, which may be transferred, even though the transferee takes it subject to it's disability incident to the discharge." --Stanek vs. White, 172 Minn.390, 215 N.W. 784
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George Aligator
Member
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Posted: Sun Mar 18th, 2007 05:06 pm |
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| I believe that our conservative colleagues would prefer to abolish the Federal Reserve System and return to gold coinage. It's an idea worthy of disucssion here. The socialist line on all this might surprise you...
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Jim Colyer
Member
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Posted: Sun Mar 18th, 2007 05:11 pm |
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| The Federal Reserve is not privately owned even though some people claim it is.
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semjase
Member
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Posted: Sun Mar 18th, 2007 05:47 pm |
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George Aligator wrote: I believe that our conservative colleagues would prefer to abolish the Federal Reserve System and return to gold coinage. It's an idea worthy of disucssion here. The socialist line on all this might surprise you...
Well a Central Bank is one of the 10 planks of the Communist Manifesto...
We should return to a precious metals standard. The original intent of the Constitution is clear on the matter:
"The founding fathers were concerned about the unrestrained control of the money supply. One thing they all agreed upon was the limitation on the issuance of money,
Thomas Jefferson warned of the damage that would be caused if the people assigned control of the money supply to the banking sector, "I believe that banking institutions are more dangerous to our liberties than standing armies. Already they have raised up a money aristocracy that has set the government at defiance. This issuing power should be taken from the banks and restored to the people to whom it properly belongs. If the American people ever allow private banks to control the issue of currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children will wake up homeless on the continent their fathers conquered. I hope we shall crush in its birth the aristocracy of the moneyed corporations which already dare to challenge our Government to a trial of strength and bid defiance to the laws of our country" Thomas Jefferson, 1791
Many of the founding fathers experienced the damage caused by fiat currency. Most of the revolutionary war was financed by worthless currency called "Continentals".
# The Continental Currency ("Not worth a Continental") that American colonists issued for the Continental Congress to finance the Revolutionary War was replaced by the US Dollar in 1785 when The Continental Congress adopted the dollar as the unit for national currency. At that time, private bank-note companies printed a variety of notes. After adoption of the Constitution in 1789, Congress chartered the First Bank of the United States and authorized it to issue paper bank notes to eliminate confusion and simplify trade. The U.S. Constitution (Section 10) forbids any state from making anything but gold or silver a legal tender. The Federal Monetary System was established in 1792 with the creation of the U.S. Mint in Philadelphia. The first American coins were struck in 1793. The U.S. Coinage Act of 1792, consistent with the Constitution, provided for a U.S. Mint, which stamped silver and gold coins. The importance of this Act cannot be stressed enough. One dollar was defined by statute as a specific weight of gold.
# The Act also invoked the death penalty for anyone found to be debasing money.
# President George Washington mentions the importance of the national currency backed by gold and silver throughout his initial term of office and he contributed his own silver for the initial coins minted.
# The purchase of The US Mint in Philadelphia, was the first money appropriated by Congress for a building to be used for a public purpose. It was purchased for a total of $4,266.67 on July 18, 1792.
http://www.kwaves.com/fiat.htm
Here's the Coinage Act so everyone can read the truth for themselves:
http://landru.i-link-2.net/monques/coinageact.html
"SEC. 19. And be it further enacted, That if any of the gold or silver coins which shall be struck or coined at the said mint shall be debased or made worse as to the proportion of fine gold or fine silver therein contained, or shall be of less weight or value than the same ought to be pursuant to the directions of this act, through the default or with the connivance of any of the officers or persons who shall be employed at the said mint, for the purpose of profit or gain, or otherwise with a fraudulent intent, and if any of the said officers or persons shall embezzle any of the metals which shall at any time be committed to their charge for the purpose of being coined, or any of the coins which shall be struck or coined at the said mint, every such officer or person who shall commit any or either of the said offences, shall be deemed guilty of felony, and shall suffer death."
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semjase
Member
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Posted: Sun Mar 18th, 2007 05:49 pm |
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Jim Colyer wrote: The Federal Reserve is not privately owned even though some people claim it is.
Please stop lying. The federal courts and congressional testimony contradict your false claims:
"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
"Some people think the Federal Reserve Banks are the United States government's institutions. They are not government institutions. They are private credit monopolies which prey upon the people of the United States for the benefit of themselves and their foreign swindlers" -- Congressional
Record 12595-12603 -- Louis T. McFadden, Chairman of the Committee on Banking and Currency (12 years) June 10, 1932
"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
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semjase
Member
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Posted: Sun Mar 18th, 2007 08:56 pm |
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George Aligator wrote: I believe that our conservative colleagues would prefer to abolish the Federal Reserve System and return to gold coinage. It's an idea worthy of disucssion here. The socialist line on all this might surprise you...
I'm always open to a new discussion, and I'm glad you're on board with the idea, but we went over a lot of this a long time ago in a thread far, far away:
http://perspectives.com/forums/view_topic.php?id=94910
I recommend you check it out.
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