6139008-History-of-Money

"ownership." For example, the Reserve Banks issue shares of stock to member banks. However, owning Reserve Bankstock is quite different from owning stock in a private company. The Reserve Banks are not operated for profit, andownership 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, six percent per year. Again, the holding of stock in aFederal Reserve Bank does not carry with it the control and financial interest conveyed to holders of common stock in forprofitorganizations.” In other words, the Federal Reserve System is a banking cartel owned by the BankLords who ownthe member banks. There is no better expert on this ‘banking cartel’ than G. Edward Griffin, the author of “The CreatureFrom Jekyll Island: A Second Look at the Federal Reserve”. Congressman Ron Paul from the great state of Texas, and amember of the House Banking Committee, had this to say about Griffin’s book… "A superb analysis deserving seriousattention by all Americans. Be prepared for one heck of a journey through time and mind."How The Private Fed Creates Money From Thin Air (G. Edward Griffin)1. The banking system, including the Federal Reserve, is the source of all dollar-denominated money. The Fed creates themonetary base, also known as Fed money, comprising notes and coins and deposits at the Fed. Banks expand the moneysupply by issuing loans, and thereby create credit money.2. The Fed influences the amount of bank lending through its selection and control of the Fed funds rate, the benchmarkfor all short term interest rates. However it does not directly control the amount of credit money created by commercialbanks which are private profit-seeking enterprises.3. The amount of money created is a function of the demand for bank credit at the going lending rate. Banks normallylend to any borrower who is found capable of paying the interest and returning the principal on a date-certain. Bankissuedcredit money is the principal part of the money supply.4. A bank's lending is ultimately limited by the amount of its equity, based on the capital ratio requirement set by the Fed.Banks must also meet a reserve ratio requirement, but in fact the Fed normally provides the required reserves in order tomaintain control of the interbank lending rate, i.e. the Fed funds rate.5. The Fed controls the Fed funds rate through its open market operations, buying or selling securities short term for itsown portfolio. This adds or drains banking system reserves as needed to balance supply and demand at its chosen targetrate. Banks temporarily short of reserves may borrow directly from the Fed's discount window.6. To support the increasing demand for currency and bank credit money, the Fed purchases Treasury securities directlyfrom the public. This is referred to as monetizing the debt, which increases the monetary base in direct proportion to theincrease in the value of Treasury securities held by the Fed.We've been talking about how the privately owned Federal Reserve can produce money from thin air. Here's how it'sdone. 1. The purchase of bonds is approved by the Federal Open Market Committee. 2. The Fed buys the bonds which itpays for with electronic credits made to the sellers bank. These credits are based on nothing. 3. The receiving banks thenuse these credits as reserves from which they can loan out ten times the amount. 4. If paper notes are required, theFederal pays the US Treasury to print them for a few cents per note but is slightly more expensive than issuing computerbased credits, i.e. the private Fed uses the US Treasury BEP as a print shop! To reduce the amount of money in theeconomy they simply reverse the process. The Fed sells bonds to the public and money is drawn from the purchasers’bank to pay for them. Each million withdrawn lowers the banks ability to loan by 10 million. The Federal bank in this wayhas overall control of the US money supply, and each country's central bank does in the same way. The Bankers throughthe magic of fractional reserve banking have been delegated the right to create 90% of the money supply. This controlmakes a mockery of any elected government. It places so called leaders behind a toy steering wheel, like the plastic ones,set up to amuse small children.In summary, the FED buys instruments with printed money or money created from nothing to increase liquidity ordecreases interest rates. It does the opposite to decrease liquidity.Or as Rep.Charles Lindbergh father of famous aviator Lucky Lindy puts it when commenting on the FederalReserve Act: "This act establishes the most gigantic trust on earth. When the President signs this bill, the invisiblegovernment by the Monetary Power will be legalised. The people may not know it immediately, but the day of reckoning isonly a few years removed... The worst legislative crime of the ages is perpetrated by this banking bill."Or as Woodrow Wilson put it: "We have come to be one of the worst ruled, one of the most completely controlledgovernments in the civilised World - no longer a government of free opinion, no longer a government by... a vote of themajority, but a government by the opinion and duress of a small group of dominant men. Some of the biggest men in theUnited States, in the field of commerce and manufacture, are afraid of something. They know that there is a powersomewhere so organised, so subtle, so watchful, so interlocked, so complete, so pervasive, that they had better not speakabove their breath when they speak in condemnation of it."The Hidden History Of Money & New World Order Usury Secrets Revealed at last! Page 279