December 10, 2009
The Federal Reserve
I had this post written last night, but it got deleted when I went to bed. My mistake, and I have to re-write the whole thing. So here it is, below:
I have often stated through past years that when I began my Bo Gritz campaign in 1992, that in those days people who lived in the entire country and knew anything at all about the realities of the Federal Reserve could comfortably fit into an average sized living room. Today with more than 300 members of the House of Representatives being signatories on a bill to audit the Federal Reserve, this is no longer the case. But ignorance as to even the basics of the Federal Reserve topic is still rampant. I hope the below helps.
A most comprehensive look at the Federal Reserve is available in my MANUAL FOR THE SECOND AMERICAN REVOLUTION 2010-2012, Chapter IV, pages 111-150. But I will summarize here.
On December 23, 1913 President Woodrow Wilson signed the Federal Reserve Act of 1913 into law. The most immediate result was the creation of 12 Regional Federal Reserve Banks, one each in the following 12 American cities: Boston, New York, Philadelphia, Cleveland, Richmond, Atlanta, Chicago, St. Louis, Dallas, Kansas City, Minneapolis, and San Francisco. Each was registered in it’s own state as a profit-making, private, independent corporation, obliged to pay appropriate state taxes. All of them have aggressively defended their privacy and independene from that day forward. Early on they received the active help of our legal system and courts. The Supreme Court of the United States ruled in favor of Federal Reserve independence and privacy in several important cases. The Federal Reserve continues to prevail on those issues to this day.
Perhaps that’s why it’s no wonder that the general public continues to believe that the Federal Reserve is a “Federal” entity, and why they were in a state of shocked surprise in 1992 every time Col. Gritz uttered his now famous campaign quip: “The Federal Reserve is no more federal than Freddy Smith’s Federal Express.” But the public was helped along in aquiring such a belief.
After all it does say in big bold letters “Federal Reserve Bank” on top of the entrance of every one of them, but there is another unique fact to add to the confusion.
There really exists a bona fide federal entity precisely named the ”Board of Governors of the Federal Reserve System.” It is made up of 7 “Governors” appointed to 14 year terms by the President of the United States, each of them confirmed by the United States Senate. They are federal employees without a doubt, receiving green paychecks for the duration of their service. One of them is the “Chairman of the Board of Governors of the Federal Reserve System.” The current one is Ben Bernanke, his predecessor was the famous Alan Greenspan.
You might say that’s where the peculiarities begin. Even though the President of the United States appoints the above 7 (typically choosing their names from a list provided by the banks) he has no further control of them after the appointment. He cannot fire them, and he cannot give them orders or even direction. They are, after all, independent. And now we are in a position to ask a most peculiar question:
Just who do these “Governors” govern? It turns out they do NOT govern the 12 Regional Federal Reserve Banks. They do NOT appoint the presidents of those banks, and they do NOT have authority over the policies those banks might pursue. Most importantly, they do NOT set the famous interest rate that controls the money supply (M1) in our country, though they do hava a non-controlling vote in the Open Market Committee which, allegedly, does. Bottom line: these “Governors” only have the authority to govern each other.
Let us here remind ourselves that we as a nation hold our President responsible for the Economy (as in “it’s the economy, stupid.”). To illustrate the grotesque inconsistency here let me quote from the MANUAL page 118:
“It’s as if we took a car to the repair shop because somehow it wasn’t steering right. As we anxiously watch, the mechanic puts it on the rack and begins to examine it. Shortly we see him coming towards us with the most perplexed look on his face. He just discovered that the steering wheel was never connected to the front wheel axle.”
But it gets worse.
The most blatant atrocity routinely practiced by the Federal Reserve for the past 97 years is not easy to explain. But before I ever decided to campaign for Col. “Bo” Gritz, in May of 1992, I worked out the language that does just that. The circumstances are perhaps an interesting side light:
I and my x-girl friend of those days, Sharon, who stuck with me for the entire Bo Gritz campaign and a bunch of years thereafter, were spending time soaking in a hot spring 5 miles north of Alamo, Nevada. We would go there for days at a time. You could pitch a tent in those days, soak, drink beer, broil steaks and converse with a steady stream of total strangers that were doing the same thing. Bo Gritz’s confrontation with the Federal Reserve was on my mind and formed the basis of many a conversation.
Through trial and error I developed an effective way to explain myself as it regarded the Federal Reserve. Part of my degree from the University of Omaha is a minor in Economic Geography. It included credits in economics that used the standard McConnel Economics text with which I am reasonably familiar. It shouldn’t surprise anyone that regaling strangers in a hot spring with McConnel was not a winner.
But I was trying to explain Bo Gritz’s position on the Federal Reserve. I will cite here the language I developed. It worked at the hot spring and during all the rallies I spoke at during the 1992 campaign. Once again I will cite from portions of page 122-126 of the MANUAL as they pertain to an appearance I made at the studio of KCMO Radio in Kansas City, Missouri in early September 1992. Dave Dawson was the talk show host.
* * * *
I was on for an hour, in person, right after Bo Gritz was on for an hour via telephone. After some preliminary back and forth about the Federal Reserve, mostly about how it isn’t “Federal,” I asked Dave a question as follows: “Dave,” I said, ” you’re an American like the rest of us … you know about the FOUR TRILLION DOLLAR so called national debt … in your opinion … who do we owe it to?” Dave’s answer surprised everybody:
“Well, … It’s funny you should ask that question.” He began, … ”because I had a chance to put that same question to Mr. Allan Greenspan himself, not very long ago in Los Angeles.”
“Really!” I exclaimed. “What did he say?” I continued: “I’m sure all your listeners want to know, WHAT DID HE SAY?”
“He tried to evade the question.” Dave said, laconically.
“So what did you do?” I asked immediately.
“I paraphrased the question right back at him.” Dave related.
“So what happened then?” I asked, deliberately adding to the suspense.
“”He got irritated.” Dave smiled across the wide expanse of an extra large conference table strewn with high tech broadcasting gear.
“DAVE!” … WHAT did he SAY?”
“Oh, … he said something alright.” Dave finally decided to spill it: “He (Greenspan) said:
“YOU ARE BARKING UP THE WRONG TREE !!”
* * * *
We go back now to Dave Dawson’s radio talk show in Kansas city where, having barked up Mister Greenspan’s wrong tree for awhile, we are attempting to deal with it’s implications. I have the mike and manage to get in a portion of my stock campaign speech on behalf of the Bo Gritz candidacy:
“You know Dave … when you say to an American, or to any common sense possessive person for that matter, … that we as a NATION, owe FOUR TRILLION DOLLARS; the picture that comes to mind is that someone through the years, reached in their pocket, … and lent us all this money. That we really shouldn’t have borrowed it, … but that we did; … and now, … having agreed beforehand to pay it back with interest, … we are HONOR bound, and DUTY bound, AS A NATION, … to PAY IT BACK! Wouldn’t you agree, Dave, that that’s a fair picture of what most of us believe to be the case?”
Dave agreed.
“But Dave!” I moved in for the rhetorical kill …
“THERE IS SOMETHING WRONG WITH THE PICTURE !!”
I continued: “Because, you see …
“NO ONE EVER REACHED IN THEIR POCKET”
You see, Dave, … THEY HAVE A BETTER WAY: THEY REACH FOR THE TELEPHONE! They call the U.S. Bureau of Engraving and Printing, and they have the money printed. THEN they lend it to us … in exchange for UNITED STATES TREASURY BONDS. These become part of the NATIONAL DEBT. And WHO OWNS THOSE BONDS? That’s simple: It’s the
STOCKHOLDERS OF THE TWELVE REGIONAL FEDERAL RESERVE BANKS.
And who might these be? That’s easy (for more than 98% of the stock of the REGIONAL FEDERAL RESERVE BANKS) … it’s just nine INTERNATIONAL BANKS (named below), of which only three are even nominally American. The New York Federal Reserve is somewhat of an exception inasmuch as those nine International Banks own only 92% of the New York Federal Reserve. The remaining 8% are made up of names like Melon, Vanderbilt, Carneghy, Rockefeller, etc., a virtual who’s who of America’s richest families.
NOTE: The ownership of the REGIONAL FEDERAL RESERVE BANKS, all of them American corporations incorporated under the laws of the various states, certainly to include the New York Federal Reserve, which is incorporated in the State of New York is A MATTER OF PUBLIC RECORD. This means the incorporation papers are to be found in public archives, even though, as this writer suspects, the actual retrieval of such records by members of the general public, might not be as easy as one would ordinarily have a right to expect.
It is not the purpose of this MANUAL to go into stock ownership detail here, but to provide both an effective overview, as well as direction to sources of information the reader might desire.
In summary therefore, more than 98% of the ownership of the Federal Reserve Banks in the United States of America rests with the following NINE INTERNATIONAL BANK-TYPE entities:
- Chase Manhattan Bank, New York
- Godman-Sachs, New York
- Lehman Bros., New York
- Rothschild Bank, London
- Frere Lazard Bank, Paris
- Israel Moses Schiff Bank, Italy
- Rothschild Bank, Berlin
- Kuhn and Loeb, Germany
- Warburg Bank, Hamburg, Germany
Let the reader keep in mind that the above list does not reflect name changes, indirect ownership, degree of foreign control, private contracts or just understandings as between these entities, or between them and other private, or governmental agencies. Let the reader keep in mind that here we name, only approximately, the tip of a FINANCIAL ICE BERG that has now existed for approximately 500 years.
* * * *
Now at last we can ask just a few brass tacks questions for which answers are well known. Here’s the first one: have the owners of the Federal Reserve ever provided the United States with any money they owned before December 13, 1913? The answer is: NONE. Next question: have the owners of the Federal Reserve ever received cash money from the United States of America? The answer is LOT’S.
In 1992 the interest on the national debt of 4 Trillion dollars, paid to the owners of the Regional Federal Banks was $283 Billion Dollars. Next year the interest on 12.1 Trillion will be substantially more than 800 Billion Dollars. It will be by far the largest item on next year’s federal budget.
And what do they do with that money, year to year, going back to 1913? We have no idea. They do not feel we have a right to ask. In line with that practical reality, they have not been audited by independent audit for 97 years. But that doesn’t mean we can have no idea at all of what they did with it. Is it ridiculous to suggest that they divied it up between themselves and their cronies?
My belief is that the so-called NATIONAL DEBT is the result of the biggest fraud in history, and that the only thing we owe these international criminals are prison accomodations. But there’s no way that can happen with our Supreme Court as currently structured. So.
May God grant success to
THE SECOND AMERICAN REVOLUTION and to the Tea Party Heroes that will bring it about.
John Ruseckas
Lt/Col USAF (Ret)