Just out of curiosity.... Let's pretend for a minute that I buy this theory that the Federal Reserve is a sinister organization run by bankers who are bent on taking away my liberty.
What do I have to do about it.
Can you give me the answer in under 5 bulleted points, no images and less than 1000 words, please?
What specific steps are you advocating we take?
This subject cannot be 'summarized' with afew words/bullet points, please click on the link provided above, there is so much to read and learn...
I have no idea what actions to take.
Here's some interesting facts.
The following are excerpts from "MONEY FACTS 169 Questions and Answers on
Money - A Supplement to A Primer on Money", prepared by the Subcommittee on
Domestic Finance, House of Representatives, 88th Congress, 2d Session:
Question 1 - "Who has the right to create money in the United States?"
Answer - "Under the Constitution, it is the right and duty of Congress
to create money. It is left entirely to Congress."
Question 2 - "To whom has the Congress delegated this money-creating
Answer - "To the banking system, that is, to the Federal Reserve
System and to the commercial banks in the country."
Question 6 - "Does Congress supervise Federal Reserve policymaking?"
Answer - "No. In practice, the Federal Reserve is "independent" in its
policy-making. The Federal Reserve neither requires nor seeks the approval
of any branch of Government for its policies. The System itself decides what
ends its policies are aimed at and then takes whatever action it sees fit to
reach those ends."
Question 7 - "What problems are raised by an "independent" Federal
Answer - "There are two major problems. One is the problem of
political responsibility for the country's economic policies. The other is
the problem of final control over the Government's action in the economic
Question 8 - "What is the problem of political responsibility?"
Answer - "Since the Federal Reserve is independent it is not
accountable to anyone for economic policies it chooses to pursue. But this
runs counter to normally accepted democratic principles. The President and
Congress are responsible to the people on election day for the past economic
decisions. But the Federal Reserve is responsible neither to the people
directly nor indirectly through the people's elected representatives. Yet
the Federal Reserve exercises great power in controlling the money-creating
activities of the commercial banks."
Question 35 - "Has the United States gone off the gold standard?"
Answer - "Yes, except in its international transactions."
Question 38 - "To whom does the Constitution give the power over
Answer - "The Congress. The Constitution provides "the Congress shall
have power to coin money, regulate the value thereof." The Supreme Court has
interpreted this clause, again and again over a period of 150 years, to mean
that "whatever power there is over the currency is vested in Congress."
Question 41 - "What is fractional reserve method of banking?"
Answer - "The fractional reserve method of banking originated with the
goldsmiths - the predecessors of our present bankers. It is the method of
banking used today. Briefly, it is a system whereby bankers maintain as
reserves only a fraction of the amount needed to meet all claims against
them. (The vast bulk of the claims against the banks are the deposits you
and I hold. These are obligations which the bank must pay on demand.) The
goldsmiths struck upon this method by noticing that the people who deposited
gold with them for safekeeping only claimed a small portion of this gold at
any one time. Therefore, the goldsmiths realized that they could lend out a
good portion of the gold left with them. They then made loans, which in fact
were not gold but warehouse receipts for gold. These receipts circulated as
money. Notice, the gold - actually certificates of ownership - being loaned
by the goldsmith was not his to lend. He did not own it, In other words, the
goldsmith wrote receipts to people who were not depositing gold, i.e. to
borrowers. So receipts for more gold meet the claims against him. This is
the fractional reserve system. When the banks of the United States kept
their reserves in gold, their reserves amounted only to a small fraction of
the amount of money they had issued, all of which was guaranteed to be
redeemable in gold."
[Editor's note: Could this be the reason many goldsmiths were taken out to
a tree and hung, when the people discovered the fraud that had been
perpetrated upon them?]
Fraud - "A false misrepresentation of a matter of fact, whether by words or
by conduct, by false or misleading allegations, or by concealment of that
which should have been disclosed, which deceives or is intended to deceive
another . . . A generic term, embracing all multifarious means which human
ingenuity can devise, and which are resorted to by one individual to get
advantage over another by false suggestions or by suppression of the truth,
and includes all surprise, trick, cunning, dissembling, and any unfair way
by which another is cheated . . . `Bad faith' and `fraud' are synonymous,
and also synonymous of dishonesty, infidelity, faithfulness, perfidy,
unfairness, etc. . . ." (Black's Law Dictionary, 6th Edition)
Question 47 - "Where does the Federal Reserve get the money with which
to create bank reserves?"
Answer - "It doesn't `get' the money, it creates it. When the Federal
Reserve writes a check, it is creating money . The Federal Reserve is a
total moneymaking machine. It can issue money or checks. And it never has a
problem making its checks good because it can obtain the $5 and $10 bills
necessary to cover its check simply by asking the Treasury Department's
Bureau of Printing and Engraving to print them."
Question 69 - "If the Government can issue bonds, why can't they issue
money and save the interest?"
Answer - ". . . There is little opposition to the Government's
printing bonds and then permitting the banks to create the money with which
to buy those bonds; but proposals that the Government itself create the
money instead of the bonds have always set off tremendous political
upheavals. For example, Abraham Lincoln set off a political furor when he
insisted upon having the Government issue $364 million in money, the
so-called "greenbacks" instead of issuing interest-bearing bonds and paying
interest on the money."
Question 70 - "If the Government issued more money instead of
Government bonds, isn't there a danger that the Government would issue to
much money and cause inflation?"
Answer - "No. It is no more or less inflationary for the private banks
to create $1 billion of new money than it is for the Government to create $1
billion of new money . . ."
Question 91 - "What are the sources of revenue of the Federal
Answer - "By far the largest is interest on its holdings of U.S.
Government securities. This accounts for almost 99 percent of the Federal
Question 125 - "Do private banks enjoy a special relationship with the
Answer - "Yes, a very special relationship. The business of banks is
to lend money. The profits comes from the difference between the cost of
creating money and the price they charge borrowers for that money. Now the
cost of creating money is negligible . . . The banks do not pay a license
fee or a payment charge for their reserves. Thus the raw materials the banks
use cost them nothing . . . Further, the Federal Government provides private
banks with the protection from competition and the hazard of failure."
Question 131 - "Do private banks perform a service in buying
Answer - "No, because they create the money - an obligation of
Government - simply to buy bonds guaranteed by the Government. There is no
risk involved . . . Their reward for buying bonds with money they create is
the "subsidized" profits they enjoy."
Question 132 - "What is the burden of U.S. Government bonds, held by
the private banking system?"
Answer - "The burden is the heavy bond interest payments, borne by the
taxpayers, that go to private bankers when the same amount of money could be
created by an agency of the government. Then the taxpayers would not bear
this tremendous cost on Government bonds purchased with the reserves given
to private bankers."
Question 161 - "Are the effects of money policy so unique that the
monetary policymakers need to be free from all accountability?"
Answer - "No. It is hard to see what is so mysterious about monetary
policy. Everyone is affected by tax and expenditures and by foreign policy.
In both areas, the Government must take `unpopular action.' Raising taxes is
unpopular. Sending men to fight in Korea is unpopular. No one suggests that
we should have an independent `defense policy board' or an independent `tax
policy board.' Why then an independent money policy board?"
Question 163 - "Is the Federal Reserve independence inefficient?"
Answer - "Absolutely . . . It is pure luck if the motor is not
constantly stalling. We have not always been lucky. This is no way to run
economic policymaking . . . Controlling the economy should come from one,
and only one source - which must be the Congress in our democracy."
The following are excerpts from "MONEY FACTS 169 Questions and Answers
on Money - A Supplement to A Primer on Money", prepared by the Subcommittee
on Domestic Finance, House of Representatives, 88th Congress, 2d Session:
Question 164 - "Is the trustee notion of monetary policymaking alien
to America democracy?"
Answer - "Of course. The claim that the people do not know what is
good for them, and therefore a small group of men should be given the power
to make decisions and then to take action without being held accountable to
the people is 100 percent undemocratic. The essence of democracy is that the
people decide for themselves, through their elected officials, what is good
or bad for them. Further, to give monetary control to a group like the
Federal Reserve is to hand over enormous power unfettered by responsibility
to anyone. In a democracy, especially the American form, the holders of
power, almost without exception, are responsible to the people, through
their elected officials in the use of this power. The Federal Reserve's
ideas that they should be considered trustees rather than stewards runs
counter to anything that Americans have believed about power and
responsibility since the founding of the Republic."
Question 165 - "Who favors Federal Reserve independence?"
Answer - "The private banks who control the System, together with some
allies - notably, Wall Street newspapers and other members of the financial