The Federal Reserve Should Be Abolished

THE TRUTH ABOUT THE FEDERAL RESERVE:#1 The Federal Reserve System Is A Privately Owned Banking CartelThe Federal Reserve is not a government agency.The truth is that it is a privately owned central bank. It is owned by the banks that are members of the Federal Reserve system. We do not know how much of the system each bank owns, because that has never been disclosed to the American people.The Federal Reserve openly admits that it is privately owned. When it was defending itself against a Bloomberg request for information under the Freedom of Information Act, the Federal Reserve stated unequivocally in court that it was “not an agency” of the federal government and therefore not subject to the Freedom of Information Act.In fact, if you want to find out that the Federal Reserve system is owned by the member banks, all you have to do is go to the Federal Reserve website:"The twelve regional Federal Reserve Banks, which were established by Congress as the operating arms of the nation’s central banking system, are organized much like private corporations–possibly leading to some confusion about “ownership.” For example, the Reserve Banks issue shares of stock to member banks. However, owning Reserve Bank stock is quite different from owning stock in a private company. The Reserve Banks are not operated for profit, and ownership of a certain amount of stock is, by law, a condition of membership in the System. The stock may not be sold, traded, or pledged as security for a loan; dividends are, by law, 6 percent per year."Foreign governments and foreign banks do own significant ownership interests in the member banks that own the Federal Reserve system. So it would be accurate to say that the Federal Reserve is partially foreign-owned.But until the exact ownership shares of the Federal Reserve are revealed, we will never know to what extent the Fed is foreign-owned.#2 The Federal Reserve System Is A Perpetual Debt MachineAs long as the Federal Reserve System exists, U.S. government debt will continue to go up and up and up.This runs contrary to the conventional wisdom that Democrats and Republicans would have us believe, but unfortunately it is true.The way our system works, whenever more money is created more debt is created as well.For example, whenever the U.S. government wants to spend more money than it takes in (which happens constantly), it has to go ask the Federal Reserve for it. The federal government gives U.S. Treasury bonds to the Federal Reserve, and the Federal Reserve gives the U.S. government “Federal Reserve Notes” in return. Usually this is just done electronically.So where does the Federal Reserve get the Federal Reserve Notes?It just creates them out of thin air.Wouldn’t you like to be able to create money out of thin air?Instead of issuing money directly, the U.S. government lets the Federal Reserve create it out of thin air and then the U.S. government borrows it.Talk about stupid.When this new debt is created, the amount of interest that the U.S. government will eventually pay on that debt is not also created.So where will that money come from?Well, eventually the U.S. government will have to go back to the Federal Reserve to get even more money to finance the ever expanding debt that it has gotten itself trapped into.It is a debt spiral that is designed to go on perpetually.You see, the reality is that the money supply is designed to constantly expand under the Federal Reserve system. That is why we have all become accustomed to thinking of inflation as “normal”.So what does the Federal Reserve do with the U.S. Treasury bonds that it gets from the U.S. government?Well, it sells them off to others. There are lots of people out there that have made a ton of money by holding U.S. government debt.In fiscal 2011, the U.S. government paid out 454 billion dollars just in interest on the national debt.That is 454 billion dollars that was taken out of our pockets and put into the pockets of wealthy individuals and foreign governments around the globe.The truth is that our current debt-based monetary system was designed by greedy bankers that wanted to make enormous profits by using the Federal Reserve as a tool to create money out of thin air and lend it to the U.S. government at interest.And that plan is working quite well.Most Americans today don’t understand how any of this works, but many prominent Americans in the past did understand it.For example, Thomas Edison was once quoted in the New York Times as saying the following:"That is to say, under the old way any time we wish to add to the national wealth we are compelled to add to the national debt.Now, that is what Henry Ford wants to prevent. He thinks it is stupid, and so do I, that for the loan of $30,000,000 of their own money the people of the United States should be compelled to pay $66,000,000 — that is what it amounts to, with interest. People who will not turn a shovelful of dirt nor contribute a pound of material will collect more money from the United States than will the people who supply the material and do the work. That is the terrible thing about interest. In all our great bond issues the interest is always greater than the principal. All of the great public works cost more than twice the actual cost, on that account. Under the present system of doing business we simply add 120 to 150 per cent, to the stated cost.But here is the point: If our nation can issue a dollar bond, it can issue a dollar bill. The element that makes the bond good makes the bill good."We should have listened to men like Edison and Ford.But we didn’t.And so we pay the price.On July 1, 1914 (a few months after the Fed was created) the U.S. national debt was 2.9 billion dollars.Today, it is more than more than 5000 times larger.Yes, the perpetual debt machine is working quite well, and most Americans do not even realize what is happening.MORE INFORMATION HERE:http://theeconomiccollapseblog.com...