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Tell me again, why shouldnt we abolish the federal reserve?
It is important to understand that the FED does not actually print money, All U.S. currency is in fact printed by the Bureau of Engraving and Printing (BEP). The Fed, rather is the master distributor of the money, which they "create" this way by executing a simple computer entry in their accounting system.
Despite what many people think, the Federal reserve is NOT an agency of the United States government.
They are no more a part of the Federal government than is Federal Express. The Federal Reserve is actually a privately owned corporation, owned by a secret group of international bankers. In essence, they are a private banking cartel who have a total monopoly on "creating" money for the U.S. government. The Fed's only real agenda is to turn a profit and they do so at the expense of every single man, woman and child living in the U.S.A..
If you ask the average person you meet on the street, What is the Fed ? and What do they do ? Most (if they have any idea at all) will say they think the Fed is an agency of the U.S. government, and that they serve to help stabilize our economy by controlling interest rates and providing liquidity when needed.
Nothing could be further from the truth. They really have 1 agenda and 1 agenda only. That is to turn a profit.
They do this in 2 different ways:
They manipulate interest rates to create "boom-bust" cycles which always work out to the advantage of the hidden elite "insiders". . .
as they know exactly when our economy will boom, and when it will bust.
They increase the money supply by "creating" money through the incredibly lucrative "sweet heart" deal
they've had with the U.S. government, ever since the Federal Reserve Act of 1913 was signed into law.
Accordingly, when the U.S. Government needs money, they go to the Fed to borrow the money. The Fed calls the Treasury and asks them to print x amount of Federal Reserve Notes (FRN) in units of one hundred dollars. The Treasury charges the Fed 2.3 cents for each note. The Fed then lends that money to the government at face value plus interest. The government has to create a bond for the loan amount as security for the loan.
Now the government owes the private ownership of the Fed the face value of the bonds plus interest. In other words, the Fed earns interest by "loaning" that money to the U.S. government. Imagine that... they earn interest by loaning money which is not even theirs to loan...
which they just created out of thin air.
So essentially every bill they "create" has a debt associated to it, and if the debt is not paid, what do you think they do ?
That's right. They create more Federal Reserve Notes so they can loan more to the government (actually exchange for U.S. bonds)
in order to pay off the debt, thereby growing the national debt even more.
This is what we refer to as a debt monetary system. In other words, our currency has a debt attached to it before we ever spend any of it. We can never get out of debt because it is a self propagating, vicious cycle, that will ultimately end with the complete destruction of our currency and bankruptcy of our nation.
They can NOT be audited and do NOT answer to the President or anyone for that matter. The president appoints the Board of Governors but has no control over their secret activities. Congress knows nothing of the conversations, plans, and actions taken in concert with other central banks. We get less and less information regarding the money supply each year, especially now that M3 is no longer reported.
Not only is the Fed exempt from tax, but 100% of the income tax that Americans pay, goes right to the Fed to pay off this debt, which they perpetually create. It is no coincidence that the Federal Income tax law was enacted in the same year as the Federal Reserve Act. It was needed to finance this scam. Prior to this, the U.S prospered and the government paid it's bills with out needing revenue from income tax. But that all ended with the enactment of the Federal Reserve Act of 1913. From that point forward, income tax was required to pay for the debt owed to the Fed for interest on the money they create and loan out to the U.S. government. This is just beyond insanity.
"I believe that banking institutions are more dangerous to our liberties that standing armies"
-Thomas Jefferson
In accordance with Thomas Jefferson's views, Article 1, Section 8 of the US Constitution specifically says that Congress is the only body that can "coin money and regulate the value thereof." The US Constitution has never been amended to allow anyone other than Congress to coin and regulate currency.
@Truth man hated by liberals: Actually, gold retains its value. There is enough gold already alone in the united states to support our economy, but because of the deficit, we cant enact the standard, as of now. That is a false statement made by those who support and gain from the FED, and to put it simply, not true.
Long-term price stability has been described as the great virtue of the gold standard. The gold standard limits the power of governments to inflate prices through excessive issuance of paper currency. Under the gold standard, high levels of inflation are rare, and hyperinflation is nearly impossible as the money supply can only grow at the rate that the gold supply increases. Economy-wide price increases caused by ever-increasing amounts of currency chasing a constant supply of goods are rare, as gold supply for monetary use is limited by the available gold that can be minted into coin. High levels of inflation under a gold standard are usually seen only when warfare destr
oys a large part of the economy, reducing the production of goods, or when a major new source of gold becomes available. In the U.S. one of those periods of warfare was the Civil War, which destroyed the economy of the South, while the California Gold Rush made large amounts of gold available for minting.
8 Answers
- Anonymous9 years agoFavorite Answer
The Fed is the spawn of Satan. They quiet literally have a stranglehold on the producers here and abroad. They are the new slave masters, and the people gladly serve.
They say none are more hopelessly enslaved than those who falsely believe they are free. And it's true.
- NGC6205Lv 77 years ago
Geez, so much nonsense.
The U.S. shouldn't do away with the Federal Reserve because all modern economies NEED a central bank in order to operate efficiently.
The Federal Reserve is INDEPENDENT, but it is most definitely NOT private. There are parts of the Federal Reserve System that can be considered private IN CERTAIN SITUATIONS, but for the most part, it is not private and is properly held to be a federal instrumentality. See my answer at http://answers.yahoo.com/question/index;_ylt=AsNV3... for more information about the structure and ownership of the Federal Reserve. That link includes links to the law governing the Federal Reserve. Anything that disagrees with the law, like claims that the Fed is owned by a secret group of international bankers, is obviously conspiracy theory nonsense.
Also mentioned in the prior link is that the Fed is definitely NOT a for profit bank or system. In fact, after a small dividend is paid to the member banks of the system and an adjustment to a statutorily authorized surplus fund, all profits are turned over to the U.S. Treasury every year.
Booms and busts are NOT created by the Federal Reserve either, at least not on purpose. An active economy will have booms and busts even when no central bank exists. In fact, there were more recessions and depressions in the 1800s and they usually lasted longer than there have been since the Federal Reserve was created.
You are also wrong about how the government borrows money. The government borrows money by issuing U.S. Treasury securities which are then sold at auction where anyone may buy them, even you. However, the Federal Reserve is FORBIDDEN BY LAW from loaning money to the government directly. Most U.S. Treasury securities are issued with a maturity date and the government will NOT redeem or pay back the security until the maturity date is reached. If a holder wants to get their money for the security before the maturity date, they have to find another investor willing to buy it from them. This buying and selling of securities after issue but before maturity creates the open market. It is on the open market that the Federal Reserve purchases the U.S. Treasury securities that it holds. The rest of your description about how the Fed operates concerning money is also nonsense.
Contrary to conspiracy theory nonsense, the Federal Reserve is audited every year. Annual independent audits are required by law. See 12 USC 248b The results of those audits are public record and are included in the Federal Reserve's annual report to Congress. The audits and annual reports are freely available on the Internet for anyone who bothers to look.
It is also a MYTH that all of the income tax goes to the Federal Reserve to pay off the debt. That myth came about because some conspiracy theorists with reading comprehension problems misinterpreted the Grace Commission report. The Grace Commission report, which dates from the mid-80s when the interest rate on the debt was much higher, stated that 1/3 of income taxes due were not collected, 1/3 was wasted by government bureaucracy, and 1/3 went to interest on the debt. Whatever portion of income taxes go to pay interest on the debt, it goes to the holders of the debt of which the Federal Reserve only holds a portion.
Finally, before I run out of room, your interpretation of the Constitution is FLAWED. While Congress has the power to create money and to regulate its value, it also has the power to make all laws necessary and proper to carry out the powers granted to it. The Supreme Court long ago determined that Congress could charter a bank and authorize that bank to issue circulating notes. That ruling dates back to 1819.
Of course, don't let these actual facts get in the way of your delusional views about money, banking and the Federal Reserve.
- Anonymous9 years ago
Today political party affiliation do not make any differences any more. We are and whole world under control and supervision of BilderBerg Group master and creators of NWO. Today majority worldwide politicians members of NWO club, so do not be wore over who what and why going to be elected it is they and only they BilderBerg Group "NWO" masters going decide that. They have one goal it is to take over the world and eliminate 80-90% of the world population and slave all remain rest of 500 millions. Beware what going to happened with you and your family after NWO going take over the world and start implement final solution over us humanity. My friends we must investigate and expose and burn to the ground their evil plans but if you want to be a market slave go ahead because in the totalitarian NWO regime will be only two classes the masters incredibly wealthy and their slaves. Can you guess which one you will belong to or it is too difficult for you? Wake up my Brothers do your research, my recommendation: Read the book “Masters Game “by Graham Hancock & Robert Bauval.Book contains 6 hundred pages with sources, photos and references. And YouTube videos especially: Zeitgeist by Peter Joseph, The Upcoming New World Order, NWO Deception, Satanic NOW, One World Religion, The big deception,NWO Alien Agenda, The Deception of One World Religion, New World Order Plan to Kill 90% of the World's Population, Illuminati Satanic 2012+ UFO Event, NWO Satanic Higher Consciousness, New Age Satanism, Satanic Enlightenment, New Age Deception, The Power behind the New World Order Full Documentary, The Satanic 9/11 Ritual, by Bill Cooper. Wake up my Brothers time is running out, we have to face those cronies. May god blesses all of us we are 99% percentile.
- 9 years ago
"Did you hear about the fed?"
"No, what about the fed?"
"They announced another round of the quantitative easing."
"What does it mean?"
(Some long drawn out explanation in complicated terms, i.e. expand its balance sheet, make large asset purchases, etc. but then goes to what it really means). Which is:
"It means they are going to print a ton of money."
LOL
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- Dr. InternetLv 59 years ago
Because hyperinflation would be really exciting in the US. So many exciting stories to tell future generations.
- DerekLv 69 years ago
I got nothing.
Let's get rid of it.
I'm voting for Ron Paul this year, regardless of what everyone else is doing.
Just saying.
- Anonymous9 years ago
Because there is no workable alternative.
And no, the gold standard is not workable. There is not enough gold on the entire planet to run our current economy.
