The Federal Brief

The Federal Brief

The History, the Fraud, and the Cover-up of the Federal Reserve Bank

This didn’t just happen today, or even yesterday.  This is old and forgotten news.  But it is why we are in the financial and economic mess we are today, and may never recover from.  The cycle of criminal fraud, except for ‘one’ American President's efforts that may have cost him his life,  just continues unchallenged and unabated..  

A study done by de Andréa

Of Bottom Line Publishing

Original Publication October 7, 2011

Posted September 20, 2012

1 of 12 pages

The interesting thing about this is that it is all part of a carefully orchestrated plan.  The original idea however was discovered quite by accident even before America was a free Nation.  Then the resulting fraudulent banking system was later foisted on the U.S. government before the ink on the constitution was barely dry.  Moreover the only president to try to stop this organized crime syndicate known as “The FED” was assassinated 5 months later.  Coincidence?  Well…You decide…

Pretty strong words?  Well read on my friend…

Before we begin I would like you to keep one thing in mind.  Basic Economics, which is the only kind of economics I understand, demands a -stability created by a balance between GNP- gross national product, and the money supply.  In other words, if there is more money chasing too few goods, we have inflation or the devaluation of our money.  Everything will cost more and more the more ‘printed’ money that is in circulation. 

Conversely the opposite will happen if there are more goods or things to buy than there is money to buy it with.  The cost of things you buy will then go down. 

I hope I have made that clear, if it’s a little foggy, please read it again then continue.

The truth about the FED

So just what is the Federal Reserve Bank, and why do we have it?  The following is a little history, and a connecting of the dots study, of the inner workings of a central bank and the world central banking industry.  It is little known and all but forgotten, “The Federal Reserve Act of 1913”, the accompanying “Internal Revenue Service Act”, and the “Federal Department of Education”.  I hope you will find this Interesting…

The Federal Reserve Act of 1913 evolved into the Federal Reserve System, then the Federal Reserve Bank, then just the Federal Reserve, and now’ it has come to be known what it is today, simply “THE FED”, but it didn’t start there, and it didn’t happen over night…

The Central Banking System
The FED is a central bank.  Central banks are historically supposed to implement a country's fiscal policies.  They monitor commercial banks to ensure that they maintain sufficient assets, like cash, to remain solvent and stable.  Central banks also do business, such as currency exchanges and gold transactions, with other central banks.  In theory, a central bank should be good for a country, and they might be, if it wasn't for the fact that they are not owned or controlled by the government of the country they are serving. 

Most people have no idea that the U.S. Federal Reserve Bank is a private entity, no more Federal than Federal Express!  When I mentioned this to my stock broker one day, who should know better, he replied with an articulate “Naw!”  So I said: Look it up on the stock exchange, and sure enough there it was, a private stock owned corporate bank, created in 1913 by an elitist group of left over socialists from the old colonial empire of early America.  Private central banks, including our FED, operate not in the interest of the public good as most people believe, but instead, as any private corporation --- it is for profit.  Now I want you to understand that I am not against profit, on the contrary, I am all for free enterprise.  What I am against is ‘Syndicated Fraud for Profit’.  You might not be totally surprised by who collectively owns all the private stock in the U.S. FED.

Fractional banking and loan

Let’s cut right to the chase.  There have been three central banks in our nation's history.  The first two, while also deceptive and fraudulent, pale in comparison to the scope and size of the fraud being perpetrated by our current FED.  One of the things they all have in common is an insidious practice known as "fractional banking."

Fractional banking and/or fractional lending is the ability to create or print money from nothing with little or no backing.  Constitutionally, money is allowed only to be printed by the government Treasury.  And while still printed by the treasury it is now on orders of the FED.  They then lend the phony money, (no different than the well known Monopoly money printed by the Parker Brothers), back to the government or someone else, and charge interest to boot. 

The beginning

The practice evolved from an accidental discovery before banks existed.  The predecessors of banks were Goldsmiths, who rented out space in their vaults to individuals and merchants for storage of their gold or silver.  The goldsmiths then gave these "depositors" a certificate that showed the amount of bullion stored.  These certificates were then used to conduct business. 

In time, the goldsmiths noticed that the gold and silver bullion in their vaults was rarely withdrawn.  Small amounts would move in and out but on average the large majority never moved.  ‘Sensing a profit opportunity’, the goldsmiths devised a scheme to issued double receipts for the gold and/or silver bullion, in effect creating money (certificates) from nothing and then lending those certificates (creating debt) to depositors and like the central banks of the future, they charged them interest on the phony certificates as well. 

Since the certificates represented more gold or bullion than actually existed, the certificates were as a result only "fractionally" backed by anything of value, in this case by precious metals.  Eventually some of these vault operations were transformed into banks and the practice of fractional banking continued unabated.  This bullion backed fractional banking eventually evolved into paper backed fractional banking and then into the digital backed fractional banking that we have today, all phonier than a three dollar bank note.  I mean Madoff was put in prison for less. 

The Bank of The United States
Keep that fractional banking concept in mind as we examine Americas first central bank.  The First Bank of the United States or the BUS as it was called, was created, after bitter dissent in the Congress in 1791, and was chartered for 20 years.  A scam not unlike the “Ponzi Scheme” of the current FED, the BUS used its control of the currency to defraud the public and establish a legal or an illegal form of usury depending on how you view it. 

This bank practiced fractional lending at a 10:1 rate, ten dollars of loans for every dollar they had on deposit.  This misuse and abuse of their public charter continued for the entire 20 years of their existence.  Public outrage over these abuses was such that the charter was not renewed and the bank ceased to exist in 1811. 

The Second Central Bank of the United States
The war of 1812 left the country in economic chaos, it was seen by bankers as another opportunity for easy profits.  They influenced Congress to charter the second central bank, the Second Bank of the United States the S-BUS, in 1816. 

The S-BUS was more expansive than the BUS.  The S-BUS sold franchises and literally doubled the number of banks in a short period.  The country at the time began to boom and move westward, which required money.  Using fractional lending at the 10:1 rate, the central bank and their franchisees created the debt/money for the expansion. 

Things boomed for a while, and then the banks decided to shut off the debt/money, citing the need to control inflation.  This action on the part of the S-BUS caused bankruptcies and foreclosures.  The banks then took control of those assets that were used as security against the loans. 

The cycle of economic boom and collapse
Pay close attention now while we examine just how the S-BUS engineered this cycle of prosperity and depression because this is the blue print that created the cycle that has been at the foundation of all of our recessions/depressions, and phony overvalued prosperity through out our history.  The central bank caused inflation by creating debt/money for loans and credit and making these funds readily available.  The economy boomed again.  Then they used the inflation which they created as an excuse to shut off the loans/credit/money. 

The resulting shortage of cash caused the economy to falter or slow dramatically and large numbers of business and personal bankruptcies resulted.  The central bank then seized the assets again used as security for the loans.  The wealth created by the borrowers during the boom was then transferred to the central bank during the bust.  And if you have wondered how the big guys always end up with all the marbles, well…now you know. 

The Great Depression
Now, who do you think is responsible for all of the ups and downs in our economy over the last 85 years?  Think about the great depression of the late '20s and all through the '30s, coming off of a cycle of great prosperity i.e. the “Roaring Twenty’s.  The FED could have pumped lots of debt/money into the market to stimulate the economy and get the country back on track, but did they?  No; in fact, they restricted the money supply quite severely.  We all know the results that occurred from that action, don't we?  Nearly 10 years of economic collapse and in many cases, poverty. 

How did the FED do this?

The FED pressured banks to make loans on the purchase of stock.  Margin buying they called it.  The more stock purchased the more the price went up. If the stock went down the margin loan was called.  The FED bought stock as it was forced up and up until they started selling their own large blocks of stock in 1929.  The market lost 12 percent of it value over night. And the rest as they say is history.  The money the banks lost in loans was irrelevant to the FED as they made all their profit in selling the over priced stock. 

Why would the FED do this? 

Now during that period asset values and stocks were at rock bottom prices, the market at first lost only 12% of its value in 1929 but because of what the FED did, or did not do, by 1932 the market lost over 90%.  Who do you think was then buying everything literally at 10 cents on the dollar?  I believe that it is referred to as consolidating or redistribution of the wealth.  How many times have they already done this in the last 85 years?  Do you think they will do it again?  Of course they will!  And they did the same thing to drive up the price of housing in the recent crash.  It’s a great money making “Ponzi Scheme” on a scale to large to comprehend.  (Buy low sell high!) especially if one can control the value.   Remember this is a for profit company. 

Just as a side bar at this point, look at today's economy.  Markets are declining.  Why?  Because the FED has been very liberal with its debt/credit/money.  The market was hyper inflated.  Who creates inflation?  The FED.  How does the FED deal with inflation?  They restrict the debt/credit/money.  What happens when they do that?  The market collapses.  Up and down, up and down, like a yoyo, buy low sell high.

Gold and the money supply
Several months back, after certain central banks said they would be selling large quantities of gold, the price of gold fell to a 25-year low of about $260 per ounce.  The central banks then bought gold.  After buying at the bottom, a group of 15 central banks announced that they would be restricting the amount of gold released into the market for the next five years.  The price of gold went up $75.00 per ounce in just a few days.  How many hundreds of billions of dollars did the central banks make with those two press releases?  How much money do you think they are making now?

Gold is generally considered a hedge against more severe economic conditions.  Do you think that the private banking families that own the FED are buying or selling equities at this time?  (Remember: buy low, sell high.)  How much money do you think these FED owners have made since they restricted the money supply at the top of this last current cycle?  Trust me you can’t count that high!

When Alan Greenspan was chairman of the FED he said publicly on several occasions that he thinks the market is overvalued, or words to that effect.  Just a hint that he would raise interest rates (restrict the money supply), and equity markets had a negative reaction.  Governments and politicians do not rule central banks; central banks rule governments and politicians.  And more importantly they rule the world economy.  

The demise and recreation of the Central Bank.  

President Andrew Jackson won the presidency in 1828 with the promise to end the national debt and eliminate the SBUS. During his second term President Jackson withdrew all government funds from the bank and on January 8, 1835, paid off the national debt.  He is the only president in history to have this distinction.  The charter of the SBUS expired in 1836. 

The creation of today’s FED
Without a central bank to manipulate the supply of money, the United States experienced unprecedented growth for 60 or 70 years, and the resulting wealth of individual citizens was too much for bankers to endure.  They had to get back into the game.  So, in 1910 Senator Nelson Aldrich, then Chairman of the National Monetary Commission, in collusion with representatives of the European central banks, devised a plan to pressure and deceive Congress into enacting legislation that would covertly establish another private central bank. 

This bank would assume control over the American economy among other ways by controlling the issuance of its money.  After a huge public relations campaign, engineered by the foreign central banks, the Federal Reserve Act of 1913 was slipped through Congress during the Christmas recess, with many members of the Congress absent.  President Woodrow Wilson, who was pressured by his political and financial backers, signed it on December 23, 1913. 

I recommend that you read the book“The Creature from Jekyll Island” by Edward Griffin, so you understand the FED and learn more about how and why it was created and by whom. 

The act created the Federal Reserve System, a name carefully selected and designed to deceive.  "Federal" would lead one to believe that this is a government organization.  "Reserve" would lead one to believe that the currency is being backed by gold and silver in reserve.  And "System" was used in lieu of the word "bank" so that one would not conclude that the central bank had been newly recreated.  Sneaky huh!  This is very telling about just how educated our representatives are about American history

In reality, the act created a private, for profit, central Banking Corporation owned by a cartel of private banks.  Who owns the FED?  Well bankers of course, people like The Rothschilds of London and Berlin; Lazard Brothers of Paris; Israel Moses Seif of Italy; Kuhn, Loeb and Warburg of Germany; and the Lehman Brothers, Goldman, Sachs and the Rockefeller families of New York.  Did you know that the FED is the only for-profit corporation in America that is exempt from both federal and state taxes?  The FED takes in a profit of more than one trillion dollars per year tax free!  The banking families listed above get all that money.  And did I say tax free? 

Almost everyone thinks that the money you pay in taxes goes to the US Treasury to pay for the expenses of the government.  Do you want to know where your tax dollars really go?  If you look at the back of any check made payable to the IRS you will see that it has been endorsed as "Pay Any F.R.B. Branch or Gen. Depository for Credit U.S. Treas.  This is in payment of U.S. Obligations.”  Yes, that's right, every dime you pay in income taxes is given to those private banking families, commonly known as the FED, and it is all tax free my friend. 

How it works
As many of you likely did, I had some difficulty with the concept of creating money from nothing, which recently became more apparent as the government loaned or gave money away mostly to the very people who create it.  You may have heard the term "monetizing the debt," which is kind of the same thing.  As an example, if the US Government wants to borrow $1 million, the government in fact does borrow every dollar it spends; they go to the FED to borrow the money.  The FED calls the Treasury and says print 10,000 Federal Reserve Notes (FRN) in units of one hundred dollars.  May I remind you these are Federal Reserve Notes, not Gold backed notes or the old “Silver Certificates” that some of us will remember, or even Treasury Notes.  No, this is bank issued money just printed by the Treasury Dept. Well… not really, there really isn’t even any money at all, it is just numbers, I’ll explain in just a moment.  If this were legal, then any privately owned bank could print their own money.  But that would be unconstitutional now wouldn’t it? 

The Treasury charges the FED 2.3 cents for each note, for a total of $230 for the 10,000 FRNs.  The FED then lends the $1 million in phony money to the government at face value plus interest.  To add insult to injury, the government has to create a bond for $1 million as security for the loan.  And the FED gets richer and richer.  The above was just an example, because in reality the FED does not even print the money; it's just a computer entry in their accounting system.  To put this on a more personal level, let's use another example. 

Today's banks are members of the Federal Reserve Banking System.  This membership makes it legal for them to create money from nothing and lend it to you.  Today's banks, like the goldsmiths of old, realize that only a small fraction of the money deposited in their banks is ever actually withdrawn in the form of cash.  Only about 3 or 4 percent of all the money that exists, is in the form of currency.  The rest of it is simply a computer entry. 

Let's say you're approved to borrow $10,000 to do some home improvements.  You know that the bank didn't actually take $10,000 from its pile of cash and put it into your pile.  They simply went to their computer and input an entry of $10,000 into your account.  They created, from thin air, a debt, which you have to secure with an asset and repay with interest.  The bank is allowed to create and lend as much debt as they want as long as they do not exceed the 10:1 ratio imposed by the government to Federal Reserve act. 

The IRS, part of the Scheme
Now to put the frosting on this cake.  When was the income tax created?  If you guessed 1913, the same year that the FED was created, you would get a gold star. Coincidence?  Yeah right…  If you are going to use the FED to create debt, then who is going to repay that debt?  The income tax was also unconstitutionally created to complete the illusion that real money had been lent and therefore real money had to be repaid.  And you thought Houdini was good.  Think about it, the Federal government never needed to tax your income before, why suddenly in 1913.  You see the Bankers needed to grow the Federal Government into a big sponge to soak up a lot of debt.  Big deficit spending is good for the FED. 

So, what can be done?  My Daddy taught me that one should always stand up for what is right, even if you have to stand up alone, and trust me I am used to standing alone. 

If "We the People" don't take some action now, there will come a time in the not to distant future, when "We the People" are no more, we will be just a manipulated slave work force on the social dole.  All the money and all the power will be in the hands of a few corporate elitists.

This brief only begins to scratch the surface as to how far reaching and how powerful the FED is.  The URL displayed below for example, is a study of how President John Fitzgerald Kennedy Signed an executive order that virtually gutted the FED  On June 4, 1963.  A nearly unknown Presidential decree, Executive Order 11110, was signed with the authority to fundamentally strip the Federal Reserve Bank of its power to loan money to the United States Federal Government at interest.  Yes Kennedy did that!

JFK  V.  The Federal Reserve:

http://groups.google.com/group/misc.activism.progressive/browse_thread/thread/09ef8b82831c526b?pli=1

The Treasury, under Kennedy’s direction, then issued and put into circulation, treasury notes in 2, and 5 dollar notes backed by silver coin, some of you may remember that.  10 and 20 dollar U.S. Treasury Notes were also printed but never circulated.

A little more than 5 months later on November 22, 1963 President Kennedy was assassinated and the United States Treasury Notes that had been issued were immediately taken out of circulation by the FED.  And the Federal Reserve Notes continued to serve as the legal currency of the nation.  According to the United States Secret Service, more than 99% of all U.S. paper currency" circulating as of 1999 are unconstitutional, illegal, Federal Reserve Bank Notes.

President Kennedy is the only president to go up against the FED and 5 months later he was assassinated…another coincidence?  Yeah right.

Incidentally that executive order, though obviously not enforced (I guess no one else wants to die) --- is still in effect.  You might want to let your congressional representative know that.  Ask why it isn’t enforced by congress.

Thomas Jefferson once said, "If the America people ever allow private banks to control the issuance of their currencies, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the people of all their prosperity until their children will wake up homeless slaves on the continent their fathers conquered."  Jefferson saw it coming 150 years ago.  The question is, can you now see what is in store for us if we allow the FED to continue controlling our economy and the future of our country?

"The condition upon which God hath given liberty to man is eternal vigilance; which condition if he breaks, servitude is at once the consequence of his crime, and the punishment of his guilt."  John P. Curran

What can I do?

You should write a letter or send an email to each of your elected representatives.  Most of our elected representatives do not know the history or understand how the FED works.  Once informed they will not be able to plead ignorance and remain silent.  The information in this brief has been sent to all members of Congress please do your part, and tell them what you know, and hold them accountable. 

Article 1, Section 8 of the US Constitution specifically says that Congress is the only body that can "coin money and regulate the value thereof.”  The US Constitution has never been amended to allow anyone other than Congress to coin and/or regulate currency through the Department of the Treasury. 

Ask your representative in light of this information how is it constitutionally possible for the Federal Reserve Act of 1913 and the Federal Reserve Bank that it created to operate unchallenged?  Ask them why this private banking cartel is allowed to reap trillions of dollars in profits without paying any taxes.  Insist on an answer.  I can almost guarantee you that most didn’t even know that they don’t pay taxes; after all it is a government bank, is it not?  It is not!  If Obama really wanted to tax the rich he would tax the trillion or so dollars the FED steals from every taxpayer each and every year. 

THE BOTTOM LINE:  So how does this happen?  Why doesn’t America know anything about this?  This is just one of the many hundreds of Issues involved in the “Dumbing down of America” my friend, which has been a part of this Nation since its early inception.  It is what has been going on behind the scenes and between the lines for nearly 150 years.  As I said at the beginning “This didn’t just happen, this is old and forgotten news”.  More like secret news.

How this was kept secret

Through the manipulation and downright fabrication of the truth by the National Department of Education created in 1867, ironically 31 years after the abolition of the second American Central Bank, which had already begun in parts of Europe as a powerful organization to control and manipulate education and what is to be made public.  The illegal and unconstitutional Office of Education was originally sold to the U.S. Congress as a government agency needed to gather statistical information on the fast-growing educational institutions of the United States.  The Reformers, the backers and pushers of the initiative financed by the banking industry, however hoped that the Office would become a powerful federal agency.  But even though they were a strong influence in what was taught through our schools, they were frustrated at every turn by Congress.  Congress did not want the department to trespass too heavily on the right of the states to control curriculum and educational policy.  But In 1967 President Jimmy Carter changed all that by recreating the DOE into the present ED with a lot more power in its punch.  The Dumbing down of American schools were reborn as Indoctrinational programming facilities, passed off as schools of education and higher learning.

Connecting the dots

I hope you have a better picture now of how all this works together, the Central banking system FED, the IRS, and the Federal educational system, the DOE now the ED.  There are many other illegal federal departments that all work in collusion to bring about the manipulation of our free economy, and the rights, and liberty of every free American citizen.

We collectively still hold the trump card if we are only wise enough to play it.  This coming Election might just be the time…

de Andréa