The Federal Reserve Bank – it’s not what you think (Part Two – who owns the bank?)
- Image by Getty Images via Daylife
By Vincent Gioia
In Part One of this series I said I would tell who owns the Federal Reserve Bank and that you would be surprised. As I said, the Federal Reserve is a private company of bankers with twelve branch banks that confiscate our money and they have been doing this for almost a hundred years. They are not part of the United States government but they collect hundreds of billions of dollars from the American taxpayers every year, trillions in total, and they have never been audited and they do not pay taxes on profits.
Representative Louis T. McFadden, Chairman of the Committee on Banking and Currency for 12 years is quoted in the Congressional Record as saying:
“The Federal Reserve Board, …, has cheated the Government of the United States and the people of the United States out of enough money to pay the national debt…Our people’s money to the extent of $1,200,000,000 has within the last few months been shipped abroad to redeem Federal Reserve Notes and to pay other gambling debts of the traitorous Federal Reserve Board and the Federal Reserve Banks … “
So who are the masters of the Federal Reserve Bank who receive these huge profits; they include an impressive list of Foreign owned banks and investment houses, and domestic banks.
If you don’t believe The Federal Reserve (FED) is a PRIVATELY OWNED, organization; check the ENCYCLOPAEDIA BRITANNICA.
The owners of the 12 Central Federal Reserve Banks are:
- Rothschild Bank of London
- Rothschild Bank of Berlin
- Lazard Brothers of Paris
- Israel Moses Seif Banks of Italy
- Warburg Bank of Amsterdam
- Warburg Bank of Hamburg
- Lehman Brothers of New York
- Kuhn Loeb Bank of New York
- Goldman, Sachs of New York
- Chase Manhattan Bank of New York
All-in-all there is about 300 VERY POWERFUL foreign individuals that own the FED through ownership of the listed banks and investment houses.
Theoretically the FED is required to give back most of its PROFITS to the Treasury Dept., but there is NO ORGANIZATION that has the power to AUDIT the FED (not even the Congress or the IRS). Therefore there is a huge opportunity for “creative accounting” to hide and deny the profit that the U.S. Tax Payers are entitled to, which amounts to Hundreds of Billions of Dollars annually.
A few Republicans congressmen annually introduce legislation to AUDIT the FED, and every year, the legislation is defeated. The owners of the FED are an extremely powerful, invisible lobbying power.
Of course it helps the FED owners that they exert major control of media outlets so that the public is kept uninformed about the FED owners’ shenanigans. The owners of the FED own the controlling interests in ALL major media in the United States; Rockefeller, through Chase Manhattan bank, controls CBS and ABC and 28 other broadcasting firms. Each of the other owners of the FED also has controlling interest in the US media. This explains why the media have been silent about the FED scam. The FED fraud is the biggest and longest cover-up in United States history.
As pointed out in Part One, According to Article 1, Section 8 of the Constitution, the US Congress has the power to print money (The Congress shall have the power…to coin money, regulate the value thereof, and of foreign coin, ..). According to the Supreme Court, the Congress cannot transfer its power to other organizations like the FED, but they have done it anyway.
Here is how the owners of the FED profit at the expense of the American people.
The US Government runs deficits annually in the billions of dollars, and lately in the trillions of dollars. Congress covers this by issuing government bonds which are bought by the FED. Since the FED has the power to print money, it can buy any amount of the US. Government bonds at almost NO COST, except for the small fee paid to the Treasury to print money (about 3 cents/$100).
This amounts to a profit to the FED owners of about $99.97 for every 3c they invested to print the money. Basically, they exchange something that costs almost nothing to them for the US Government Bonds.
Since the FED can NOT be AUDITED by the IRS (or even by Congress), most of this profit can go anywhere the FED owners want it to go; and it is tax free.
After buying the bonds, the owner of the FED can either keep the bonds, and collect the interest the US Government now owes them, or sell the bonds to the U.S. Taxpayers or foreigners. In either case, the FED owners have received $99.97 profit for every 3 cents it invested to print the money. Since the FED is a privately owned corporation, the profit of the FED goes to the FED owners.
The U.S. Government now owes the FED owners the interest on those bonds. Remember the FED owners do not earn the bonds, they simply arrange for printing the money to buy the bonds. In other words, they created money out of thin air, and exchange it for the interest bearing bonds.
In order to pay for the bonds’ interest, the U.S. Government taxes the US population.
When a U.S. citizen holding U.S. Government bonds receives his/her return of investment on the bonds, essentially the money he/she receives is the tax money he/she is paying to the Government.
When the OWNERS of the FED receive the interest on the BONDS they’re holding, they are receiving that money essentially for free and without the need to pay taxes on the profit.
In reality every year the FED profits by hundreds of billions of dollars by buying US Government Bonds. Yet it only returns about $20 billion to the US Treasury. The rest of the profit has been spent as “Operational Expenses”. The FED expects us to believe that the FED operational expenses are hundreds of billions of dollars annually.
In actuality those profits are given as “DIVIDENDS TO SHAREHOLDERS.”
Is there any doubt this scam will eventually increase the national debt and lead to bankrupt the government?
THE FED SHOULD BE ABOLISHED
The U.S. Congress has the option to buy back the FED at $450 million (per Congressional Records). If the Congress does this, it will own back the billions of U.S. Government Bonds held by the FED. The U.S. Government will actually profit by buying back the FED; and the U.S. government would no longer have to pay interests to the FED owners on those bonds.
This will give the owners of the FED what they deserve after all the years of milking the public. Through their ownerships in the FED, powerful foreign and domestic banks have raked in trillions of dollars in tax free dividends; isn’t it about time we do something about it?
Let’s remember what Henry Ford once said “It is well enough that 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.”
Vincent Gioia is a retired lawyer who is also a metallurgical engineer graduate from Colorado School of Mines. He lives in Palm Desert, California. Please visit his blogsite: http://vincentgioiasblog.blogspot.com/
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Another good reason to move from ‘Federal Reserve Notes’ to Treasury notes, by pass the Fed all together and stop paying interest to them. Oh but that might get one killed.
in the list of 12 owners of the fed, it was mentioned that lehman bros. was one, just wondering how the demise of that company affects the ownership dynamic. who gets their shares? just curious, good article, very informative.
Thank you Greg for commenting!!!…..
About Lehman….I believe the government will…….just as they are taking all the bad debt off the books from every bank…..banks win again….tax payers ..that bad debt the gov is taking will eventually make money which the banks could have done themselves……..a huge scam that puts the $ all in the big boys hands…….
All to crash everything to bring us to one world monetary system which would be the straw that breaks our backs……
~jude
just some words of wisdom:
“The incorporation of a bank and the powers assumed [by legislation doing so] have not, in my opinion, been delegated to the United States by the Constitution. They are not among the powers specially enumerated.” –Thomas Jefferson: Opinion on Bank, 1791. ME 3:146
“It has always been denied by the republican party in this country, that the Constitution had given the power of incorporation to Congress. On the establishment of the Bank of the United States, this was the great ground on which that establishment was combated; and the party prevailing supported it only on the argument of its being an incident to the power given them for raising money.” –Thomas Jefferson to Dr. Maese, 1809. ME 12:231
“The idea of creating a national bank I do not concur in, because it seems now decided that Congress has not that power (although I sincerely wish they had it exclusively), and because I think there is already a vast redundancy rather than a scarcity of paper medium.” –Thomas Jefferson to Thomas Law, 1813. FE 9:433
“[The] Bank of the United States… is one of the most deadly hostility existing, against the principles and form of our Constitution… An institution like this, penetrating by its branches every part of the Union, acting by command and in phalanx, may, in a critical moment, upset the government. I deem no government safe which is under the vassalage of any self-constituted authorities, or any other authority than that of the nation, or its regular functionaries. What an obstruction could not this bank of the United States, with all its branch banks, be in time of war! It might dictate to us the peace we should accept, or withdraw its aids. Ought we then to give further growth to an institution so powerful, so hostile?” –Thomas Jefferson to Albert Gallatin, 1803. ME 10:437
“That we are overdone with banking institutions which have banished the precious metals and substituted a more fluctuating and unsafe medium, that these have withdrawn capital from useful improvements and employments to nourish idleness, that the wars of the world have swollen our commerce beyond the wholesome limits of exchanging our own productions for our own wants, and that, for the emolument of a small proportion of our society who prefer these demoralizing pursuits to labors useful to the whole, the peace of the whole is endangered and all our present difficulties produced, are evils more easily to be deplored than remedied.” –Thomas Jefferson to Abbe Salimankis, 1810. ME 12:379
“The system of banking [I] have… ever reprobated. I contemplate it as a blot left in all our Constitutions, which, if not covered, will end in their destruction, which is already hit by the gamblers in corruption, and is sweeping away in its progress the fortunes and morals of our citizens.” –Thomas Jefferson to John Taylor, 1816. ME 15:18
“The banks… have the regulation of the safety-valves of our fortunes, and… condense and explode them at their will.” –Thomas Jefferson to John Adams, 1819. ME 15:224
“The States should be urged to concede to the General Government, with a saving of chartered rights, the exclusive power of establishing banks of discount for paper.” –Thomas Jefferson to John W. Eppes, 1813. ME 13:431
“I sincerely believe… that banking establishments are more dangerous than standing armies, and that the principle of spending money to be paid by posterity under the name of funding is but swindling futurity on a large scale.” –Thomas Jefferson to John Taylor, 1816. ME 15:23
I am a true Jeffersonite…..better words have not been spoken…….
I am no friend of the Fed, and would like to see it abolished.
None the less you do no one any favors by publishing un-sourced conspiracy theory as fact, as you have done here.
There is absolutely no documentation presented for the spurious claim that the 12 rich familes listed own the fed. Why is there no evidence? Because it’s not true!
The Fed is owned by the memeber banks in exact relationsihp with their total capitalization. Member banks are required to buy shares in the Fed and hold them – that’s what it mean to be a member bank. The amount of shares is based on the assetts of that bank. Any bank can become a member bank by meeting the reserve requirments. Many banks have begun as state chartered banks, moved into the Fed system, and eventually became member banks.
Thus the owners of the San Francisco Fed would be Bank of America, Washington Mutual, First Interstate Bank, etc.
No one could go ask: who are the owners of these banks. Most are publicly held and the information on top shareholders is availalbe on their Yahoo Finance listing or in their annual reports. The biggest owners of most banks are large pension funds, like Cal-PERS. Senior management makes up another source of big holders.
Until recently banks like Goldman, JP Morgan and the late Lehman Brothers were not members of the Fed, and so did not own the Fed. That is as investment banks they were eligible to be part of the fed. They were esentially trading houses and sellers of specialized financial services, like IPOs, CDOs, etc.
Banks that have deposits and make loans (commercial or retail banks) are the ones that are members of the Fed. Citi has been a Fed member for a long time, for instance.
Please stop posting articles that are fully of basic errors as fact. Consider taking this article off line until you re-write it and have your facts straight.
Well… we could always go back to the Constitution
But the great saviour Obama thinks that as mere toilet paper.
Thus is so true, We , the people need to wake up and see what we have allowed to happen to our government. It is not now as it was originally set up to be. More on this
http://ddrevival.blogspot.com/2006/07/fed-jekyll-island-monster.html