Federal Reserve System is a Private Bank

Discussion in 'Economics' started by power, Mar 21, 2009.

  1. power


    The original Stock-holders of the Federal Reserve Banks in 1913 were the Rockefeller's, J.P. Morgan, Rothschild's, Lazard Freres, Schoellkopf, Kuhn-Loeb, Warburgs, Lehman Brothers and Goldman Sachs.

    The following is a conversation with Mr. Ron Supinski of the Public Information Department of the San Francisco, Federal Reserve Bank. This is an account of that conversation reconstructed to the best of my ability from notes taken during the conversation on October 8, 1992.

    CALLER - Mr. Supinski, does my country own the Federal Reserve System?

    MR. SUPINSKI - We are an agency of the government.

    CALLER - That's not my question. Is it owned by my country?

    MR. SUPINSKI - It is an agency of the government created by congress.

    CALLER - Is the Federal Reserve a Corporation?

    MR. SUPINSKI - Yes CALLER - Does my government own any of the stock in the Federal Reserve?

    MR. SUPINSKI - No, it is owned by the member banks.

    CALLER - Are the member banks private corporations?

    MR. SUPINSKI - Yes CALLER - Are Federal Reserve Notes backed by anything?

    MR. SUPINSKI -Yes, by the assets of the Federal Reserve but, primarily by the power of congress to lay tax on the people.

    CALLER - Did you say, by the power to collect taxes is what backs Federal Reserve Notes?

    MR. SUPINSKI - Yes CALLER - What are the total assets of the Federal Reserve?

    MR. SUPINSKI - The San Francisco Bank has $36 Billion in assets.

    CALLER - What are these assets comprised of?

    MR. SUPINSKI - Gold, the Federal Reserve Bank itself and government securities.

    CALLER - What value does the Federal Reserve Bank carry gold per oz. on their books?

    MR. SUPINSKI - I don't have that information but the San Francisco Bank has $1.6 billion in gold.

    CALLER - Are you saying the Federal Reserve Bank of San Francisco has $1.6 billion in gold, the bank itself and the balance of the assets is government securities?

    MR. SUPINSKI - Yes.

    CALLER - Where does the Federal Reserve get Federal Reserve Notes from?

    MR. SUPINSKI - They are authorized by the Treasury.

    CALLER - How much does the Federal Reserve pay for a $10 Federal Reserve Note?

    MR. SUPINSKI - Fifty to seventy cents.

    CALLER - How much do they pay for a $100.00 Federal Reserve Note?

    MR. SUPINSKI - The same fifty to seventy cents.

    CALLER - To pay only fifty cents for a $100.00 is a tremendous gain, isn't it?

    MR. SUPINSKI - Yes

    CALLER - According to the U.S. Treasury, the Federal Reserve pays $20.60 per 1,000 denomination or a little over two cents for a $100.00 bill, is that correct?

    MR. SUPINSKI - That is probably close.

    CALLER - Doesn't the Federal Reserve use the Federal Reserve Notes that cost about two cents each to purchase U.S. Bonds from the government?

    MR. SUPINSKI - Yes, but there is more to it than that.

    CALLER - Basically, that is what happens?

    MR. SUPINSKI - Yes, basically you are correct.

    CALLER - How many Federal Reserve Notes are in circulation?

    MR. SUPINSKI - $263 billion and we can only account for a small percentage.

    CALLER - Where did they go?

    MR. SUPINSKI - Peoples mattress, buried in their back yards and illegal drug money.

    CALLER - Since the debt is payable in Federal Reserve Notes, how can the $4 trillion national debt be paid-off with the total Federal Reserve Notes in circulation?

    MR. SUPINSKI - I don't know.

    CALLER - If the Federal Government would collect every Federal Reserve Note in circulation would it be mathematically possible to pay the $4 trillion national debt?

    MR. SUPINSKI - No CALLER - Am I correct when I say, $1 deposited in a member bank $8 can be lent out through Fractional Reserve Policy?

    MR. SUPINSKI - About $7.

    CALLER - Correct me if I am wrong but, $7 of additional Federal Reserve Notes were never put in circulation. But, for lack of better words were "created out of thin air " in the form of credits and the two cents per denomination were not paid either. In other words, the Federal Reserve Notes were not physically printed but, in reality were created by a journal entry and lent at interest. Is that correct?

    MR. SUPINSKI - Yes CALLER - Is that the reason there are only $263 billion Federal Reserve Notes in circulation?

    MR. SUPINSKI - That is part of the reason.

    CALLER - Am I mistaking that when the Federal Reserve Act was passed (on Christmas Eve) in 1913, it transferred the power to coin and issue our nations money and to regulate the value thereof from Congress to a Private corporation. And my country now borrows what should be our own money from the Federal Reserve (a private corporation) plus interest. Is that correct and the debt can never be paid off under the current money system of country?

    MR. SUPINSKI - Basically, yes.

    CALLER - I smell a rat, do you?

    MR. SUPINSKI - I am sorry, I can't answer that, I work here.

    CALLER - Has the Federal Reserve ever been independently audited?

    MR. SUPINSKI - We are audited.

    CALLER - Why is there a current House Resolution 1486 calling for a complete audit of the Federal Reserve by the G.A.O. and why is the Federal Reserve resisting?

    MR. SUPINSKI - I don't know.

    CALLER - Does the Federal Reserve regulate the value of Federal Reserve Notes and interest rates?

    MR. SUPINSKI - Yes

    CALLER - Explain how the Federal Reserve System can be Constitutional if, only the Congress of the U.S., which comprises of the Senate and the House of Representatives has the power to coin and issue our money supply and regulate the value thereof? [Article 1 Section 1 and Section 8] Nowhere, in the Constitution does it give Congress the power or authority to transfer any powers granted under the Constitution to a private corporation or, does it?

    MR. SUPINSKI - I am not an expert on constitutional law. I can refer you to our legal department.

    CALLER - I can tell you I have read the Constitution. It does NOT provide that any power granted can be transferred to a private corporation. Doesn't it specifically state, all other powers not granted are reserved to the States and to the citizens? Does that mean to a private corporation?

    MR. SUPINSKI - I don't think so, but we were created by Congress.

    CALLER - Would you agree it is our country and it should be our money as provided by our Constitution?

    MR. SUPINSKI - I understand what you are saying.

    CALLER - Why should we borrow our own money from a private consortium of bankers? Isn't this why we had a revolution, created a separate sovereign nation and a Bill of Rights?

    MR. SUPINSKI - (Declined to answer).

    CALLER - Has the Federal Reserve ever been declared constitutional by the Supreme Court?

    MR. SUPINSKI - I believe there has been court cases on the matter.

    CALLER - Have they been Supreme Court Cases?

    MR. SUPINSKI - I think so, but I am not sure.

    CALLER - Didn't the Supreme Court declare unanimously in A.L.A. Schechter Poultry Corp. vs. U.S. and Carter vs. Carter Coal Co. the corporative-state arrangement an unconstitutional delegation of legislative power? ["The power conferred is the power to regulate. This is legislative delegation in its most obnoxious form; for it is not even delegation to an official or an official body, presumptively disinterested, but to private persons."
    Carter vs. Carter Coal Co.]

    MR. SUPINSKI - I don't know, I can refer you to our legal department.

    CALLER - Isn't the current money system a house of cards that must fall because, the debt can mathematically never be paid-off?

    MR. SUPINSKI - It appears that way. I can tell you have been looking into this matter and are very knowledgeable. However, we do have a solution.

    CALLER - What is the solution?

    MR. SUPINSKI - The Debit Card.

    CALLER - Do you mean under the E.F.T. Act (Electronic Funds Transfer)? Isn't that very frightening, when one considers the capabilities of computers? It would provide the government and all it's agencies, including the Federal Reserve such information as: You went to the gas station @ 2:30 and bought $10.00 of unleaded gas @ $1.41 per gallon and then you went to the grocery store @ 2:58 and bought bread, lunch meat and milk for $12.32 and then went to the drug store @ 3:30 and bought cold medicine for $5.62. In other words, they would know where we go, when we went, how much we paid, how much the merchant paid and how much profit he made. Under the E.F.T. they will literally know everything about us. Isn't that kind of scary?

    MR. SUPINSKI - Yes, it makes you wonder.

    CALLER - I smell a GIANT RAT that has overthrown my constitution. Aren't we paying tribute in the form of income taxes to a consortium of private bankers?

    MR. SUPINSKI - I can't call it tribute, it is interest.

    CALLER - Haven't all elected officials taken an oath of office to preserve and defend the Constitution from enemies both foreign and domestic? Isn't the Federal Reserve a domestic enemy?

    MR. SUPINSKI - I can't say that.

    Continued ...

    http://www.the7thfire.com/Politics and History/Federal-Reserve.html
  2. No one gives a shit
  3. Maybe not right now. But it is likely that people will give a shit in a few years.
  4. power


    Lehman Brothers has shut down and Goldman Sach's received $12.6 billion from AIG which AIG received as bail-out.
  5. The Federal Reserve is a private bank with the majority of its profits going to the Treasury Department and a shitty billion or two to its member banks in the form of a 6% preferred stock dividend.

    The more money the Fed makes off loans to private banks, the less the taxpayer liability will be to fund the operations of the Federal Government.
  6. the1


    Not even close. The Federal Reserve is the biggest leach society has ever fallen victim to. They control the housing, auto, and credit card markets, just to name a few. Do a little research on this agency and you'll quickly learn they are the most powerful entity ever created by man. Read The Creature from Jeckyl Island or Web of Debt. Web of Debt is more current.

  7. Are you familiar with the game Monopoly? The game was highly deflationary with one player ending up with all cash, property, and wealth while everyone else went bankrupt. That's exactly would would happen in America if the Fed didn't provide liquidity and become a lender of last resort. Profits earned by Fed is circulated back into the economy via government spending and bank lending.
  8. Then why can't we see there balance sheets and this 'flow of money' back into the economy?
  9. The Fed publishes it's balance sheet weekly and it's flow of funds such as dividends to member banks in and profit transfer to the Treasury Department is published once yearly in its Annual Report to congress.
    #10     Mar 21, 2009