Monday, July 25, 2011
The Federal Reserve ADMITS that Its 12 Banks Are PRIVATE - Not Government - Entities
Much of the tens of trillions in bailout money and "easy" money from quantitative easing went to foreign banks (and see this, this and this).
Indeed, Ron Paul noted recently that one-third of all fed bailout loans - and essentially 100% of loans from the New York Fed - went to foreign banks.
The New York Fed is the most important Fed bank. As Bloomberg pointed out in 2009:
However, the country's most powerful "agency" - the Federal Reserve - is actually no more federal than Federal Express. The Fed itself admitted (via Bloomberg):The New York Fed is one of 12 regional Federal Reserve banks and the one charged with monitoring capital markets. It is also managing $1.7 trillion [now up to at least $1.9 trillion] of emergency lending programs [and accepting collateral from the banks in return].
For that reason, the New York Fed alleged in the lawsuit brought by Bloomberg to force the Fed to reveal some information about its loans - Bloomberg LP v. Board of Governors of the Federal Reserve System, 08-CV-9595, U.S. District Court, Southern District of New York (Manhattan) - that it was not subject to Federal Freedom of Information Act. As Bloomberg reported in a separate article:While the Fed’s Washington-based Board of Governors is a federal agency subject to the Freedom of Information Act and other government rules, the New York Fed and other regional banks maintain they are separate institutions, owned by their member banks, and not subject to federal restrictions.
As the long-time Chairman of the House Banking and Currency Committee (Charles McFadden) said on June 10, 1932:The Federal Reserve Bank of New York ... runs most of the lending programs. Most documents relevant to [a freedom of information lawsuit filed by Bloomberg news] are at the New York Fed, which isn’t subject to FOIA law, according to the central bank. The Board of Governors has 231 pages of documents, to which it is denying access under an exemption for trade secrets.
Some people think that the Federal Reserve Banks are United States Government institutions. They are private monopolies ....Similarly, the Bank for International Settlements (BIS) - often called the "central banks' central bank", as it coordinates transactions between central banks, and which is the entity determining the level of reserves banks are required to keep worldwide - is itself owned by the central banks of the world.
As Spiegel reported in 2009:
The BIS is a closed organization owned by the 55 central banks. The heads of these central banks travel to the Basel headquarters once every two months, and the General Meeting, the BIS's supreme executive body, takes place once a year.In, other words, the private banks own the Fed (and most other central banks), and the central banks - in turn - own BIS, the global bank regulator.
Interestingly, Spiegel points out that BIS is largely immune from regulation, oversight or taxes:
Formally registered as a stock corporation, it is recognized as an international organization and, therefore, is not subject to any jurisdiction other than international law.It does not need to pay tax, and its members and employees enjoy extensive immunity. No other institution regulates the BIS, despite the fact that it manages about 4 percent of the world's total currency reserves, or €217 trillion ($304 trillion), as well as 120 tons of gold...
Central bankers are not elected by the people but are appointed by their governments. Nevertheless, they wield power that exceeds that of many political leaders. Their decisions affect entire economies, and a single word from their lips is capable of moving financial markets. They set interest rates, thereby determining the cost of borrowing and the speed of global financial currents.
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The BIS is a closed organization owned by the 55 central banks
ReplyDeleteMore like a giant, planet-wide Mafioso outfit.
"See here, Mugsy, dey pay up the vigorish or dey sleep with da fishes, see?"
"Quantitative easing." Is that bureaucratic speak for bend over and take up the keister?
P.S. One of the 'verifcation words' I was asked to type in was 'RETAX.'
Fitting.
If you really want to know how the Fed operates it's banks, look at it's own document, " “Federal Reserve Purpose and Function”, in which it states it is independent from any / all intervention from the Federal Government. It also shows (thru mumbo-jumbo) that it is actually the private banks who set up the management of each of the 12 Federal Reserve banks, including the officers installed as the "Public's representatives". Read the entire post here: http://sleepbutawhile.wordpress.com/2011/07/23/inconvenient-truth-15-the-federal-reserve-bank/
ReplyDeleteAccording to the publication, Money and the Federal Reserve System: Myth and
ReplyDeleteReality (Structure, Authority & Powers: Public Or Private? , by G. Thomas Woodward,
Specialist in Macroeconomics, Economics Division, Congressional Research Service, Library of Congress:
"The Board of Governors of the Federal Reserve System is a government agency. Its employees are employees of the federal government, paid in accordance with federal government pay scales, and part of the federal employee retirement system. The premises are federal government property. The seven Board members are appointed by the President with advice and consent of the Senate in the same fashion as other government appointees."
The USA is broke so maybe our congress should think about passing laws to tax the central bankers. It is an amazing read. I had always thought the worse of the Federal Reserve but I have to admit I was thinking happy thoughts compared to how evil the central bankers are. No wonder we get into forever conflict which make a lot of profits. I love the fact that the banks are not subject to any country because they are stock corporations and only subject to international law.
ReplyDeleteWatch for yourself the Federal Reserve lawyers admit that Federal Reserve Banks are not Federal Agency but rather corporate entities:
ReplyDeletehttp://www.c-spanarchives.org/program/ID/217869&start=2753&end=2874
More detail found here:
http://economiccrisiswatch.blogspot.com/2010/06/federal-reserve-banks-are-private.html
Since this is Privately Owned then those Private Banks can pay the debt. I am not going to pay ANYTHING. Watch and see.
ReplyDeleteThat they are not federal entities for some purposes does not mean that they are "private".
ReplyDeleteThey are created by federal statute.
See Lewis v. United States, 680 F.2d 1239 (9th Cir, 1982) for a discussion of when they are and when they are not a federal agency for the purposes of a specific statute.
Other courts have said: "While [federal] savings and loan associations may in many ways be analogized to private corporations, federal reserve banks, by contrast, are plainly and predominantly fiscal arms of the federal government. Their interests seem indistinguishable from those of the sovereign and there are good reasons to relieve them of any symbolic requirement of joinder with and by the United States. There are twelve such banks in the nation, of which the plaintiff is one. They were created and are operated in furtherance of the national fiscal policy. They are not operated for the profit of shareholders, and do not provide ordinary commercial banking services; their stockholders, the member banks, lack the powers and rights customarily vested in shareholders of a private corporation. Federal reserve banks act as depositories for money held in the United States Treasury and as fiscal and monetary agents of the United States. 12 U.S.C. 391. They hold the legal reserves of members banks, issue currency, facilitate check clearance and collection, and have supervisory duties as to member banks. They also provide important services for the Treasury with respect to the public debt and the issuance, handling and redemption of government securities. The limited income generated is used to pay expenses and dividends limited to 6 percent. Any remaining earnings are paid into the surplus fund, 12 U.S.C. 289, where they may be used by the United States Treasury to supplement the gold reserve. Should a federal reserve bank go into liquidation, any surplus becomes the property of the United States, 12 U.S.C. 290. See generally Board of Governors, The Federal Reserve System: Purposes and Functions (5th ed. 1969)." Federal Reserve v Massachusetts 499 F.2d 60 (1st Cir, 1974).
Can states tax private entities? Can they tax the fed? (see 12 U.S.C. 531).
I think the misunderstanding is probably caused by a conflating of the import of who does what within the fed, with federal purpose of the fed and its establishment by federal law.
Only Dr. Ron can strike fear
ReplyDeleteinto the heart of the machine
ONLY *** FUTUREDATABANK.COM *** HAS THE INFORMATION TO HELP YOU PROTECT YOUR WEALTH BEFORE THE GLOBAL ECONOMIC COLLAPSE
ReplyDeleteShould be renamed the Feudal Reserve System.
ReplyDelete