Wednesday, September 3, 2014


One hundred years ago on 23 December 1913, the United States created the Federal Reserve System (FRS) - "private (!) Printing press" planetary scale for the production of money in unlimited quantities.

From time immemorial, the main medium of exchange between people were precious metals, issued in the form of banknotes - coins or bullions. The absence of gold and silver always felt the cause of economic decline. Small money dictated the appropriate output. In contrast, when the economy received a large number of precious metals, all bloomed. Discovered America, the Old World galleons sailed with gold and silver - experienced an economic boom.
However, not everywhere. In the XVII century England, unlike in Spain, has not had extensive colonies, so the state budget of the island was in a permanent deficit. Meanwhile, the war - especially with France - demanded huge money.
Authorities came to the aid of the moneylenders. In 1694, the Bank of England was established. Its co-founders of steel, on the one hand, private financiers, on the other, "crown". Declared that under the gold and silver which is in its vaults, issued banknotes. And they can be exchanged at any time by ringing metal. Convenient. Who will check what is the amount of resources lies in the bins? That is, you can print as many notes as you want.
The British did not hide the status of your emission center, all the information that it is private, can be found . And about as Britain teetered on the brink of financial crisis, suddenly printed a lot of money due to what won the war with France and Spain, you can read in the books of the founder of the geopolitics of Rear Admiral Alfred Mahan.
Britain began to actively build an empire. Potbelly the Bank of England has become replenished, the need to produce more liabilities than it was in the reserves there, disappeared. Nevertheless, there was a precedent, and with it came into power, and financiers. Baron Nathan Rothschild, Disraeli, Lord Beaconsfield - just people from the banking environment. But patriarchal and very conservative English society with its strong influential aristocracy made it impossible to turn to moneylenders in full force.
And here in the United States had no aristocracy, classless society promised an excellent chance to establish the power of money.
First Bank of the United States, Philadelphia (Pennsylvania)
And as it was in the United States? 
The Central Bank of the United States - the Federal Reserve System (FRC) - was created much later than the central banks of other countries of the West.
In the United States and previously acted structures actually perform similar functions. First of its kind in 1791 became the First Bank of the United States. First Bank («First Bank") based in the temporary capital of the United States - Philadelphia, and was created at the suggestion of a prominent politician GamiltonaAlexander Alexander Hamilton, to solve the problem of huge state debt incurred as a result of the War of Independence, and to create a national currency of the USA.
GreyderWilliam William Greider, author of "Secrets of the Temple» Secrets of the Temple, dedicated to the history of the Federal Reserve, said that the idea of ​​creating such a body has caused a lot of controversy. For example, Secretary of State Thomas Jefferson DzheffersonThomas believed that the formation of such an institution is unconstitutional because the state has no right to do business and, therefore, violates the traditional laws on property and free enterprise. Hamilton, in turn, considered the institution an effective tool for solving public problems.

First Bank had to work 20 years for which was required to create a sound financial system, the state gold reserves, to ensure the stability of the banking business and to issue the national currency of the United States. First Bank was part of the state, but the majority of its assets owned by private individuals and companies. First Bank in 1811, ceased operations after Congress refused to extend the mandate of its existence. The main reason for this was the suspicion that the bank acted primarily for the personal benefit of shareholders, and not in the public interest.
However, the situation in the country has not improved. MelttserAlan Alan Meltzer, the author of the book "History of the Federal Reserve» A History of the Federal Reserve, stresses that at that time the banking and credit activities not regulated, many banks have their own printed dollar bills of quantity, quality and rates that nobody watched in some areas of the United States felt a surplus of money, while others - lack of, etc. Centralization of Finance was very obvious to many, but the Americans continued to experience prejudice to such structures, assuming that they are primarily designed to deceive the public and the enrichment of those in power (the European experience of that time gave many reasons for the emergence of such suspicions).
In 1816, the functions of the central bank were transferred to Second Bank of the United States («Second Bank"). The move was made in the hope of somehow stabilize the dollar. Second Bank as well as the First Bank, was established for 20 years and belonged mostly to private investors (the American government then suffered from chronic budget deficit) and was also ultratsentralizovannym institution. Then-President Andrew Jackson called it DzheksonAndrew institution "concentration of power in the hands of a small group of people, not responsible to the people."
Second Bank was really scandalous now. Bank Chairman William DzhonsWilliam Jones, a close friend of President James MedisonaJames Madison, focused on policy, neglecting the financial stabilization. Jones gave "political" loans and did not require repayment. The activities of the branches of the bank did not respond to control, resulting in the entire banking system of the United States found itself in a situation of total chaos.
While the United States experienced an economic boom. Europe, weakened by the Napoleonic Wars, in dire need of supplies of American grain. During this period, speculation related to the sale of land, greatly encouraged by financial institutions of the country. It has come to the point that almost anyone could get a bank loan and begin to speculate ground. Nevertheless, in 1818, Second Bank managers have realized that too far with credits and suddenly demanded that borrowers refund. As a result, the volume of sale of land fell sharply. In turn, Europe, restore agriculture, reduced export of American grain. All this has led to "Panic 1819" - in fact the first major financial crisis in the history of the United States.
By 1836, after a 20-year period, Second Bank ceased to exist, then the era of full banking freedom - in the United States simply lacked the organization performing the functions of the Central Bank. In the period from 1862 to 1913 for state fiscal policy respond authorized private banks, and the United States Congress tried to legislate that, often, only worsened the situation.

Morgan's private resort on Jekyll Island, where the meeting organizers Fed

The birthplace of the Federal Reserve System of the USA became the Jekyll Island, located in the state of Georgia. In 1886, a group of millionaires bought the island and turned it into a private club, where it was fashionable to spend the winters. In 1900, on the island vacationing family, in whose hands was concentrated the sixth planet of the money - the Astors, Vanderbilts, Morgans, Pulitzer, Gould and others.
It is significant that to get to the island of Jekyll could only people who were part of the club. Klubmeny refused to admit to your resort young British officer of a high-born family of Winston Churchill Winston Churchill (the future Prime Minister of Great Britain) and a prominent politician, the future president of the United States William McKinley William McKinley.
At the peak of popularity in the United States Jekyll Island began the debate on the establishment of centralized financial management. The reason for this are the four major financial crisis that shook the United States from 1873 to 1907.Americans then extremely negative attitude to the idea of ​​establishing a central bank. Similar structures in Europe operated inefficiently and even destructive. In addition, the European central banks allows the government virtually unchecked spending budget.
A year after the crisis in 1907 (it is assumed that his "organizer" was one of the "holidaymakers" John Morgan JPMorgan), the United States Congress created the National Monetary Commission National Monetary Commission, which was to determine the cause of instability in the banking system of the United States.
Historian Don AllenDon Allen, author of "The Director of the Federal Reserve: A Study of Corporate and Banking Influence» Federal Reserve Directors: A Study of Corporate and Banking Influence, writes that in 1910 was created the other group, which includes the heads of major corporations and banks in the United States . They secretly met on Jekyll Island, where he developed the concept of a body that had become the Federal Reserve System. Even know the name of the person who created the concept of central bank USA - Paul VarburgPaul Warburg, a senior executive of the bank Kuhn, Loeb and Co, a member of the "Rothschilds."
Warburg proposed a simple plan. Firstly, the central bank should not have been called the "central bank", as the Americans have a negative attitude to the transfer of control levers finance a state structure. Second, the central bank must be controlled by Congress, but the majority of its managers should be appointed by private banks, which will also hold its shares.Thirdly, the system was proposed, according to which the United States was formed not one but as many as 12 federal banks. Among other things, the reason was the desire not to give the impression that the central bank is controlled by "sharks of Wall Street," more precisely financial kings of New York. Consideration was also given the great size of the United States and the presence of a countless number of private banks operating almost uncontrollably.
1913 year-creation-Fed SSHA.-screenshot-of-Wikipedia.
In 1912, the National Monetary Commission published a report in which it recommended the establishment of a central bank in the United States. GriffinEdward Edward Griffin, author of "The Creation Jekyll Island« The Creature from Jekyll Island: A second look at the Federal Reserve notes that most of its recommendations were based on the ideas of Warburg. In 1913, Congress passed the Glass-Owen Owen-Glass Act, otherwise known as the Federal Reserve Act SistemeFederal Reserve Act, according to which, and created the Federal Reserve System. The law was signed by President Woodrow Wilson VilsonomWoodrow 23 December 1913 and entered into force immediately. It is significant that the Federal Reserve Bank of New York - the city where was concentrated the lion's share capital the United States - has received certain preferences.
Were subsequently adopted and other laws regulating the activities of the Federal Reserve, for example, the Law on Banking DeyatelnostiBanking Act (1935), the Law on ZanyatostiEmployment Act (1946), the Law on Banking HoldingahBank Holding Company Act (1956), the Law on International Banking Banking DeyatelnostiInternational Act and the Act on Full Employment and Balanced RosteFull Employment and Balanced Growth Act (1978), the Law on Depository Institutions Deregulation and Monetary KontrolyaDepository Institutions Deregulation and Monetary Control Act (1980), the Law on Financial Institutions Reform and Recovery of DeyatelnostiFinancial Institutions Reform , Recovery, and Enforcement Act (1989), Law on the improvement of the activities of the Federal Insurance Corporation DepozitovFederal Deposit Insurance Corporation Improvement Act (1991), etc. ..
Club on Jekyll Island was closed in 1942. Five years later, the island has acquired Georgia. Today it is a tourist destination - one of the oldest hotels still show two rooms, bearing the name Federal Reserve.
Structure of the Federal Reserve Federal Reserve System - a paradoxical structure. Despite the fact that it is a government organization, de facto, its owners are private individuals. Fed consists of three parts: the central UpravlyayuschihBoard Council of Governors who is in Washington, the 12 Federal Reserve Banks, scattered throughout the United States, and the Committee on Open RynkeFederal Open Market Committee. Federal banks in the technical sense, each of the 12 Federal Reserve Banks is not public organizations and corporations (these banks are located in major cities - Boston, New York, Philadelphia, Cleveland, Richmond, Atlanta, Chicago, St. Louis, Minneapolis , Kansas City, Dallas ISAN Francisco). Their shareholders are regular commercial banks. This system has existed since the founding of the Federal Reserve in 1913 and, as indicated in the relevant zakoneFederal Reserve Act, is designed to provide "flexibility and power of the national financial system." All banks that led operations throughout the United States, was ordered to join the Fed, local banks could do the same on their own initiative. This was done to ensure that the central bank did not "ivory tower", which employs only officials to solve their personal problems, not paying attention to the real situation in the country. In turn, it always generates rumors that the central bank is in the hands of the United States and under the de facto control of individuals who have their own personal financial interests (for example, this theory proves RotbardMurray Murray Rothbard, author of the book "The Case Against the Fed" The Case Against the Fed). Nevertheless, there are significant differences between commercial and Federal Reserve banks. Federal Reserve Banks conduct transactions without having for profit.Commercial banks, shareholders, unlike ordinary shareholders receive dividends very slight (not more than 6% per annum) on the activities of the Federal Reserve Banks, and the main income goes to the state. In fact, these dividends are pay-per-use of the financial assets of the commercial banks. The fact is that United States law provides that banks are required to create reserve funds, which in most cases they keep it in the Federal Reserve Banks, which, in turn, can use them for its own operations. Commercial banks and shareholders have no right to vote on decisions by federal banks, their shares can not be sold and used as collateral. In 1982, the Court of Appeal considered test case - an individual require one of the Federal Reserve Bank of damages inflicted by the state. Court rendered the following verdict: "The Federal Reserve Banks - not government agencies, and independent corporations, privately owned and controlled at the local level. Federal Reserve Banks were created to perform a number of tasks of government." Now, in the wake of the global financial crisis in the United States once again increased the position of politicians who offer to abolish the private-state form of the Fed, turning it into a full-fledged state-owned bank. In addition, it is proposed to reduce the autonomy of the structure, transferring it to the Ministry of Finance. However, before any real steps in this direction it has not yet reached.

How many dollars the Fed prints. 
The program of "quantitative easing" of the economy «QE 1» (quantitative easing) was initiated by the Federal Reserve United States in the midst of the global financial crisis (in November 2008.) And lasted till 2009. inclusive.  "QE 1"  was intended to rescue large corporations, banks and private companies through the purchase of impaired debts. During the program the Fed bought mortgage and other bonds in the amount of $ 1.7 trillion. dollars.
«QE 2"  was declared the Fed USA 2 November 2010. and the proposed purchase of Treasury bonds in the amount of $ 600 billion. dollars for 8 months - to $ 75 billion. monthly. In addition, the Fed had to reinvest about $ 300 billion. Dollars from the first quantitative easing program («QE 1"). As a result, the total amount of QE2 was to make about $ 900 billion. dollars .Ended in June 2011.
September 13, 2012. United States Federal Reserve launched a third consecutive program of quantitative easing  (QE3) .Was again included a printing press, and "printed" dollars lent for the purchase of bonds. The program looks modest previous - monthly planned to buy (print dollar) mortgage bonds worth 40 billion. dollars. Its duration was originally defined as "a few blocks", but specific dates are not fixed. Fed repeatedly emphasized that the main criterion will be the general state of the economy the United States - as soon as the Fed is satisfied in its stable and high growth, QE3 should be minimized.

Of course there is not complete without a conspiracy theory! 
Lobbying law on the Federal Reserve (Federal Reserve Act) in parliament engaged Republican Senator Nelson Aldrich, father of John D. Rockefeller. Unfortunately, the first time in 1912, he was unable to push the precious document entitled "Plan Aldrich." Later reformers removed from the title name irritating Democrats Republican Aldrich, made a number of minor changes to the document and re-launched it as an initiative already Democrats. Thus, after the sophisticated manipulation of the banking community in 1913, the Federal Reserve Act was successfully ratified. It is interesting that the vote in the upper house of the Congress took place on 23 December and on Christmas Eve in the meeting hall of the senators was quite a bit.
Thus was born the "hydra of the Fed," which serves as the central bank with a small caveat. Form of capital, the Fed is a private - equity. The structure of the Corporation consists of 12 Federal Reserve Banks, and numerous private banks. Last are the shareholders of the Federal Reserve and receive a fixed 6% per annum in the form of dividends to its membership fees, regardless of the income of the Federal Reserve. Currently, this structure is involved about 38% of all banks and credit unions in the United States (about 5.6 thousand. Entities). Shares Fed does not give the right to control, they can not be sold or mortgaged. Moreover, the acquisition is the official duty of each member bank to invest in them an amount equal to 3% of their capital. The main advantage of the status of the member bank - a loan in Fed Reserve Banks.
About how structures actually belongs to the United States Federal Reserve, is not known to anyone. Only close friendships and family ties with all the heads of the Federal Reserve Rothschild and Rockefeller, as well as the history of creation of the Federal Reserve indicates them as the true owners. However, in the 70s of last century, the press leaked some information through investigative journalist Rob Kirby, who released a list of organizations - the owners of the Fed. However, all these banks have long disappeared through merger or acquisition with others. All but one - Bank of England (Bank of London).

Rothschild Bank of London
Warburg Bank of Hamburg
Rothschild Bank of Berlin
Lehman Brothers of New York
Lazard Brothers of Paris
Kuhn Loeb Bank of New York
Israel Moses Seif Banks of Italy
Goldman Sachs of New York
Warburg Bank of Amsterdam
Chase Manhattan Bank of New York

So, on the one hand, the wealthy families of America exist and flourish for centuries, on the other - by the Fed, they affect both the United States itself, and to other countries, because the dollar remains the reserve currency.
In addition, if necessary, the United States government can always borrow from the Fed, for example, $ 5 trillion on a small victorious war in the Middle East, if the interests of the parties are the same. Since coming to power, the Bush, this measure has been used so often that the national debt now at a record $ 1.5 trillion. At the same time it should be said that the debts of individuals and corporations in the USA account for more than $ 10 trillion and total debt to GDP is approaching $ 13 trillion United States.
Russia on the eve of the 1998 default was in milder conditions. Therefore, one of the biggest challenges of the current crisis, the threat of default is considered to be the United States dollar or hyperinflation if the Fed starts printing paper with portraits of presidents at an accelerated pace.
"... All in all, understand that the reason that the fall of 2008 led to the crisis have not gone away, and that the second blow of financial and economic disaster is inevitable. In this case, your available funds of the state and corporations noticeably exhausted ... There is only one scenario - sovereign default. Project and controlled demolition of the dollar, "- writes in one of the publications director of the analytical group" Designing the Future "Sergei Pereslegin.
How the discharge will occur, we can only guess. The world over the past 20 years much has changed. Back in the mid-1980s, Americans were able to force Japan to strengthen the yen against the dollar, which benefits the United States, but led to a depression in the land of the rising sun. Today, there is growing by leaps and bounds China with their ideas of good and evil, and on a broader scale - the BRIC countries (Brazil, Russia, India, China) - the invention of family Goldman Sachs.
China is willing to apply himself to the fact that the renminbi will become a reserve currency in Asia, Russia is trying to take the lead in the financial systems of the CIS countries. In the press regularly circulate rumors about the new American currency. And how many years the United States struggles with the "golden dollar"? And already on the verge of Bitcoin, and as recently revealed the largest purses in the world has the FBI!
Are powerful families to share power over the printing press with the neighbors? Most likely, the universal principles of projections are not applicable here.

Secret Fed Program

The first in the history of the Fed audit conducted in 2012, showed that during and after the crisis of 2008, this private corporation secretly issued and distributed $ 16 trillion "their" banks. Among the recipients - Goldman Sachs - 814 billion, Merrill Lynch- 2 trillion., City Group - 2,5 трлн, Morgan Stanley - $ 2 trillion, Bank of America - 1,3 трлн, The Royal Bank of Scotland and Deutsche Bank received 500 billion. Noteworthy is the fact that the recipients of funding and foreign banks are present, which is categorically prohibited by the American legislation. In fact, it is a violation of all the rules, but simply - counterfeiting.
Private investors in light of the Fed release unaccounted dollars for their own interests. And uncontrolled emissions can not only lead to runaway inflation within the United States, but also in the loss of the dollar status as a global reserve currency.However, the main danger for America is that the arbitrariness of the Fed handing out right and left nothing of the dollar, making the debtor is an American state which is liable to creditors from China, Japan, Russia and the EU with all its assets. In fact, the country no longer belongs to the government or the people, as the United States debt many times exceed the size of the national wealth.

Why Kennedy was killed? 
On the first day of the appearance of the scheme of the Federal Reserve (uncontrolled emission of dollars) of American society representatives were aware of the risk of transmitting the private banking cartel of the most important functions of the state.
In 1923 Ch.Lindberg, a Republican from Minnesota, said the following: "The financial system of the United States handed over to the Board of Directors of the Federal Reserve. It is a private corporation established solely to maximize the profit from the use of other people's money. "
Even more sharply criticized the Fed chairman of the Banking Committee of Congress during the Great Depression L.Makfedden: "In this country has created one of the most corrupt organizations in the world. She has taken the world by people of the United States and nearly bankrupted the government. These results led corrupt politician moneybags controlling the Federal Reserve. "
Senator L.Beyts adds: "The Federal Reserve is not part of the Government of the United States, but is more powerful than the President, Congress and the courts together. This organization defines what should be profit entities and individuals under the jurisdiction of the United States, manages domestic and international payments of the country, is the largest single creditor of the government. A borrower usually dances to the tune of the creditor. "
"Fathers" of American democracy, too, saw the potential threats posed by the banking system. Author of the Constitution of the United States D.Medison said: "History shows that the money-changers use any methods of abuse, conspiracy, deceit and violence in order to maintain control of the government, managing cash flow and money supply of the country."


For many years, the attacks on the Fed were not only futile, but dangerous, because is the best way to spoil your career or give up his life (what do you think, why kill President Kennedy?). The first success was achieved only in 2012, when the United States Congress on July 25 327 votes "for" and 98 - "against" passed a bill Ron Paul about auditing the Federal Reserve. The bill provides a full audit of the Federal Reserve, including the verification of compliance status of the Institute of the American Constitution. Needed for this crisis, which put the American government to the brink of survival.
Who owns the dollars? 
The American government has no money of its own. To purchase a "national currency", the United States government issues bonds, the Fed is printing notes and gives them to the state debt by buying its bonds. The State buys back its bonds, and money, with interest returns Fed. Thus, the main source of income is the Fed  seigniorage  - the difference between the nominal value of bank notes and the cost of their manufacture. For example, if the cost of production of one hundred dollar bills is 10 cents, the seigniorage with the release of a paper - 99 dollars 90 cents.
The Fed makes a profit not only from the sale of dollar bills US government, but also on the interest payments on treasury bonds, income from payment transactions, deposits, securities transactions.
In accordance with the law "On the Federal Reserve United States," the Fed is a government entity with private components, which includes: the United States appointed by the President Federal Reserve Board, the Federal Open Market Committee, the 12 regional Federal Reserve banks, private banks, receiving inalienable, fixed income shares of the Federal Reserve Banks in exchange for reserve capital made by a number of advisory boards. In fact, the government has a very limited impact on the activities of the Fed for several reasons.
Firstly, the Fed - a state within a state and is outside supervision (as, indeed, the entire banking system).
Second, the Federal Reserve Board are appointed for a term of 14 years, renewable. As you know, the United States President is elected for a term of 4 years and a maximum period of his tenure of 8 years. As they say, Presidents come and go, and steering the Fed remains. Previous head of Mr. Greenspan Fed held the office for 19 years, and the current chairman Ben Bernanke is working already since 2006, having survived the two Presidents.
Third, the Fed is the highest authority that can determine the authenticity of dollar bills. It gives not only the possibility of uncontrolled emission, but also allows you to recognize any moneys false, even if they actually released the most Federal Reserve.
And finally, the most interesting. Federal Reserve prohibits the state to print money and conduct their own financial policies, independent of banks. American money belongs to the Fed. Therefore, power is concentrated here, and not in the White House.
Source: Masterok

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