# The Federal Reserve / Thomas Jefferson



## onarock (Mar 16, 2011)

To: U.S. Congress 
This petition calls for the abolishment, by Congress of The Federal Reserve Act of 1913. To return all the rights and profits, from the creation of money to the rightful heirs, the citizens and the U.S. Government. It is outrageous that private banks and the FED can create our money and collect interest on it. If we must pay interest on monies created and loaned, let it be the United States of America that receives it, not some private interest. 

We have lost our freedom to the private banks that create money out of thin air and enslave the common man to a life of debt. If we are to be indebted let it be to our country and not the bankers. 

"The States should be applied to, to transfer the right of issuing circulating paper to Congress exclusively, in perpetuum." --Thomas Jefferson to John W. Eppes, 1813. ME 13:276 

"[The] Bank of the United States... is one of the most deadly hostility existing, against the principles and form of our Constitution... An institution like this, penetrating by its branches every part of the Union, acting by command and in phalanx, may, in a critical moment, upset the government. I deem no government safe which is under the vassalage of any self-constituted authorities, or any other authority than that of the nation, or its regular functionaries. What an obstruction could not this bank of the United States, with all its branch banks, be in time of war! It might dictate to us the peace we should accept, or withdraw its aids. Ought we then to give further growth to an institution so powerful, so hostile?" --Thomas Jefferson to Albert Gallatin, 1803. ME 10:437 

Following by Greg Hobbs 
What Is The Federal Reserve Bank? 

What is the Federal Reserve Bank (FED) and why do we have it? 

The FED is a central bank. Central banks are supposed to implement a country's fiscal policies. They monitor commercial banks to ensure that they maintain sufficient assets, like cash, so as to remain solvent and stable. Central banks also do business, such as currency exchanges and gold transactions, with other central banks. In theory, a central bank should be good for a country, and they might be if it wasn't for the fact that they are not owned or controlled by the government of the country they are serving. Private central banks, including our FED, operate not in the interest of the public good but for profit. 

There have been three central banks in our nation's history. The first two, while deceptive and fraudulent, pale in comparison to the scope and size of the fraud being perpetrated by our current FED. What they all have in common is an insidious practice known as "fractional banking." 

Fractional banking or fractional lending is the ability to create money from nothing, lend it to the government or someone else and charge interest to boot. The practice evolved before banks existed. Goldsmiths rented out space in their vaults to individuals and merchants for storage of their gold or silver. The goldsmiths gave these "depositors" a certificate that showed the amount of gold stored. These certificates were then used to conduct business. 

In time the goldsmiths noticed that the gold in their vaults was rarely withdrawn. Small amounts would move in and out but the large majority never moved. Sensing a profit opportunity, the goldsmiths issued double receipts for the gold, in effect creating money (certificates) from nothing and then lending those certificates (creating debt) to depositors and charging them interest as well. 

Since the certificates represented more gold than actually existed, the certificates were "fractionally" backed by gold. Eventually some of these vault operations were transformed into banks and the practice of fractional banking continued. 

Keep that fractional banking concept in mind as we examine our first central bank, the First Bank of the United States (BUS). It was created, after bitter dissent in the Congress, in 1791 and chartered for 20 years. A scam not unlike the current FED, the BUS used its control of the currency to defraud the public and establish a legal form of usury. 

This bank practiced fractional lending at a 10:1 rate, ten dollars of loans for each dollar they had on deposit. This misuse and abuse of their public charter continued for the entire 20 years of their existence. Public outrage over these abuses was such that the charter was not renewed and the bank ceased to exist in 1811. 

The war of 1812 left the country in economic chaos, seen by bankers as another opportunity for easy profits. They influenced Congress to charter the second central bank, the Second Bank of the United States (SBUS), in 1816. 

The SBUS was more expansive than the BUS. The SBUS sold franchises and literally doubled the number of banks in a short period of time. The country began to boom and move westward, which required money. Using fractional lending at the 10:1 rate, the central bank and their franchisees created the debt/money for the expansion. 

Things boomed for a while, then the banks decided to shut off the debt/money, citing the need to control inflation. This action on the part of the SBUS caused bankruptcies and foreclosures. The banks then took control of the assets that were used as security against the loans. 

Closely examine how the SBUS engineered this cycle of prosperity and depression. The central bank caused inflation by creating debt/money for loans and credit and making these funds readily available. The economy boomed. Then they used the inflation which they created as an excuse to shut off the loans/credit/money. 

The resulting shortage of cash caused the economy to falter or slow dramatically and large numbers of business and personal bankruptcies resulted. The central bank then seized the assets used as security for the loans. The wealth created by the borrowers during the boom was then transferred to the central bank during the bust. And you always wondered how the big guys ended up with all the marbles. 

Now, who do you think is responsible for all of the ups and downs in our economy over the last 85 years? Think about the depression of the late '20s and all through the '30s. The FED could have pumped lots of debt/money into the market to stimulate the economy and get the country back on track, but did they? No; in fact, they restricted the money supply quite severely. We all know the results that occurred from that action, don't we? 

Why would the FED do this? During that period asset values and stocks were at rock bottom prices. Who do you think was buying everything at 10 cents on the dollar? I believe that it is referred to as consolidating the wealth. How many times have they already done this in the last 85 years? 

Do you think they will do it again? 

Just as an aside at this point, look at today's economy. Markets are declining. Why? Because the FED has been very liberal with its debt/credit/money. The market was hyper inflated. Who creates inflation? The FED. How does the FED deal with inflation? They restrict the debt/credit/money. What happens when they do that? The market collapses. 

Several months back, after certain central banks said they would be selling large quantities of gold, the price of gold fell to a 25-year low of about $260 per ounce. The central banks then bought gold. After buying at the bottom, a group of 15 central banks announced that they would be restricting the amount of gold released into the market for the next five years. The price of gold went up $75.00 per ounce in just a few days. How many hundreds of billions of dollars did the central banks make with those two press releases? 

Gold is generally considered to be a hedge against more severe economic conditions. Do you think that the private banking families that own the FED are buying or selling equities at this time? (Remember: buy low, sell high.) How much money do you think these FED owners have made since they restricted the money supply at the top of this last current cycle? 

Alan Greenspan has said publicly on several occasions that he thinks the market is overvalued, or words to that effect. Just a hint that he will raise interest rates (restrict the money supply), and equity markets have a negative reaction. Governments and politicians do not rule central banks, central banks rule governments and politicians. President Andrew Jackson won the presidency in 1828 with the promise to end the national debt and eliminate the SBUS. During his second term President Jackson withdrew all government funds from the bank and on January 8, 1835, paid off the national debt. He is the only president in history to have this distinction. The charter of the SBUS expired in 1836. 

Without a central bank to manipulate the supply of money, the United States experienced unprecedented growth for 60 or 70 years, and the resulting wealth was too much for bankers to endure. They had to get back into the game. So, in 1910 Senator Nelson Aldrich, then Chairman of the National Monetary Commission, in collusion with representatives of the European central banks, devised a plan to pressure and deceive Congress into enacting legislation that would covertly establish a private central bank. 

This bank would assume control over the American economy by controlling the issuance of its money. After a huge public relations campaign, engineered by the foreign central banks, the Federal Reserve Act of 1913 was slipped through Congress during the Christmas recess, with many members of the Congress absent. President Woodrow Wilson, pressured by his political and financial backers, signed it on December 23, 1913. 
Recommend you all read â€œThe Creature from Jekyll Islandâ€ by Edward Griffin, so you understand the FED and how it was created and by whom. 

The act created the Federal Reserve System, a name carefully selected and designed to deceive. "Federal" would lead one to believe that this is a government organization. "Reserve" would lead one to believe that the currency is being backed by gold and silver. "System" was used in lieu of the word "bank" so that one would not conclude that a new central bank had been created. 

In reality, the act created a private, for profit, central Banking Corporation owned by a cartel of private banks. Who owns the FED? The Rothschilds of London and Berlin; Lazard Brothers of Paris; Israel Moses Seif of Italy; Kuhn, Loeb and Warburg of Germany; and the Lehman Brothers, Goldman, Sachs and the Rockefeller families of New York. 

Did you know that the FED is the only for-profit corporation in America that is exempt from both federal and state taxes? The FED takes in about one trillion dollars per year tax free! The banking families listed above get all that money. 

Almost everyone thinks that the money they pay in taxes goes to the US Treasury to pay for the expenses of the government. Do you want to know where your tax dollars really go? If you look at the back of any check made payable to the IRS you will see that it has been endorsed as "Pay Any F.R.B. Branch or Gen. Depository for Credit U.S. Treas. This is in Payment of U.S. Oblig." Yes, that's right, every dime you pay in income taxes is given to those private banking families, commonly known as the FED, tax free. 

Like many of you, I had some difficulty with the concept of creating money from nothing. You may have heard the term "monetizing the debt," which is kind of the same thing. As an example, if the US Government wants to borrow $1 million Ã³ the government does borrow every dollar it spends Ã³ they go to the FED to borrow the money. The FED calls the Treasury and says print 10,000 Federal Reserve Notes (FRN) in units of one hundred dollars. 

The Treasury charges the FED 2.3 cents for each note, for a total of $230 for the 10,000 FRNs. The FED then lends the $1 million to the government at face value plus interest. To add insult to injury, the government has to create a bond for $1 million as security for the loan. And the rich get richer. The above was just an example, because in reality the FED does not even print the money; it's just a computer entry in their accounting system. To put this on a more personal level, let's use another example. 

Today's banks are members of the Federal Reserve Banking System. This membership makes it legal for them to create money from nothing and lend it to you. Today's banks, like the goldsmiths of old, realize that only a small fraction of the money deposited in their banks is ever actually withdrawn in the form of cash. Only about 3 or 4 percent of all the money that exists is in the form of currency. The rest of it is simply a computer entry. 

Let's say you're approved to borrow $10,000 to do some home improvements. You know that the bank didn't actually take $10,000 from its pile of cash and put it into your pile? They simply went to their computer and input an entry of $10,000 into your account. They created, from thin air, a debt, which you have to secure with an asset and repay with interest. The bank is allowed to create and lend as much debt as they want as long as they do not exceed the 10:1 ratio imposed by the FED. 

It sort of puts a new slant on how you view your friendly bank, doesn't it? How about those loan committees that scrutinize you with a microscope before approving the loan they created from thin air. What a hoot! They make it complex for a reason. They don't want you to understand what they are doing. People fear what they do not understand. You are easier to delude and control when you are ignorant and afraid. 

Now to put the frosting on this cake. When was the income tax created? If you guessed 1913, the same year that the FED was created, you get a gold star. Coincidence? What are the odds? If you are going to use the FED to create debt, who is going to repay that debt? The income tax was created to complete the illusion that real money had been lent and therefore real money had to be repaid. And you thought Houdini was good. 

So, what can be done? My father taught me that you should always stand up for what is right, even if you have to stand up alone. 

If "We the People" don't take some action now, there may come a time when "We the People" are no more. You should write a letter or send an email to each of your elected representatives. Many of our elected representatives do not understand the FED. Once informed they will not be able to plead ignorance and remain silent. This petition will be sent to all members of Congress, do your part and sign this petition. 

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. 

Ask your representative, in light of that information, how it is possible for the Federal Reserve Act of 1913, and the Federal Reserve Bank that it created, to be constitutional. Ask them why this private banking cartel is allowed to reap trillions of dollars in profits without paying taxes. Insist on an answer. 

Thomas Jefferson said, "If the America people ever allow private banks to control the issuance of their currencies, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the people of all their prosperity until their children will wake up homeless on the continent their fathers conquered." 

Jefferson saw it coming 150 years ago. The question is, "Can you now see what is in store for us if we allow the FED to continue controlling our country?" 
"The condition upon which God hath given liberty to man is eternal vigilance; which condition if he breaks, servitude is at once the consequence of his crime, and the punishment of his guilt." 
John P. Curran 

Reference: 
www.federal-reserve.net/whatisthefederalreservebank.htm 
www.goldismoney.info/forums/forumdisplay.php?f=56


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## ALDABRAMAN (Mar 16, 2011)

Interesting.


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## exoticsdr (Mar 17, 2011)

Sadly, I'm afraid the Fed is here to stay and be used by our government as a private printing press to put us further and further in debt.


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## Robert (Mar 17, 2011)

Onarock: interesting post. I definitely recommend "The Creature from Jeckyll Island" as well. Good read and should be read by all. 

Unfortunately, I agree with Doc. The Fed is here to stay. The general public does not and will not ever know enough, or care enough, about the workings of the FED. Sad, but I think it is here to stay. Ron Paul Has done more than most to educate people on the fed, and even with his following it has just been a drop in the ocean.


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## onarock (Mar 17, 2011)

Doc, Although, we don't see eye to eye on many subects that we have discussed here on TFO, you know I have great respect for your opinions. Don't know if I understand your nonshalant position on this injustice.
Your friend from the Aloha State Paul



exoticsdr said:


> Sadly, I'm afraid the Fed is here to stay and be used by our government as a private printing press to put us further and further in debt.





Yes great read and I agree it should be read by all. 



CtTortoise said:


> Onarock: interesting post. I definitely recommend "The Creature from Jeckyll Island" as well. Good read and should be read by all.
> 
> Unfortunately, I agree with Doc. The Fed is here to stay. The general public does not and will not ever know enough, or care enough, about the workings of the FED. Sad, but I think it is here to stay. Ron Paul Has done more than most to educate people on the fed, and even with his following it has just been a drop in the ocean.


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## terryo (Mar 18, 2011)

I sent this to my husband, who is the VP of a very large US bank. This is what he sent me. ( I know absolutely NOTHING about this.....I only know how to spend the money)

Apparently the person circulating this has a bone to pick with the 
Federal Reserve Bank, however offers no alternitive. All this stuff is from 
text, some of which is really out dated for our current monetary system.
In a nutshell private enterprise is far more useful and better managed than 
government control. This holds true for just about everything.


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## onarock (Mar 18, 2011)

I agree.. except banking. Besides its unconstitutional.... what more needs to be said?



terryo said:


> I sent this to my husband, who is the VP of a very large US bank. This is what he sent me. ( I know absolutely NOTHING about this.....I only know how to spend the money)
> 
> Apparently the person circulating this has a bone to pick with the
> Federal Reserve Bank, however offers no alternitive. All this stuff is from
> ...


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## dmmj (Mar 18, 2011)

sadly a lot of things being done today are unconstitutional. We do the best we can with what we have.


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## Robert (Mar 18, 2011)

terryo said:


> In a nutshell private enterprise is far more useful and better managed than
> government control. This holds true for just about everything.



I agree with this point.


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## onarock (Mar 18, 2011)

Dont know it the people who read this completely understand what they are reading. In a nutshell, we LEASE our own currency "We the People"'s money from private individuals or corporations. They lend us our own money with interest. Actually they lend us a fraction of our own money and a bunch that they pull from thin air with interest. 1/10 of the money they circulate or lend is actually real, the rest is fake. They charge us interest for the fake money as well as the real. How does it effect us? We spend time that we could spend with our familys or torts, working, so they dont have to. How much time? It has been written that up to 25% of our work day,week or year is spent paying the interest. What would you do with 25% more time or money, would you go and give it to your local bank?


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## Robert (Mar 18, 2011)

Onarock: not sure if you mean me on that last post. Are you saying that you would like to see more government control when it comes to banking?


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## onarock (Mar 18, 2011)

Did I reply with your post?... Or, quote you? Just sayin' its unconstitutional.



CtTortoise said:


> Onarock: not sure if you mean me on that last post. Are you saying that you would like to see more government control when it comes to banking?


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## Robert (Mar 18, 2011)

onarock said:


> Did I reply with your post?... Or, quote you? Just sayin' its unconstitutional.
> 
> 
> 
> ...



Damn, Onarock, is your default setting "argue"? . I was just asking because you said, "Don't know if the people who read this understand what they are reading?". I was just looking for clarification because I was one of the few people who responded. Just clarification, because I thought it might help to open up some more areas of this discussion on the topic of private industry vs government control in the field of banking. 

I'll drop out of this thread and let you just have at it.


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## onarock (Mar 18, 2011)

No, no its not even though lately it seems like yes, yes it is. 

Didnt mean to be short with you. Hope you continue on this thread not for me, but for your other countrymen and women who could learn something about this (in my opinion) very important issue.



CtTortoise said:


> onarock said:
> 
> 
> > Did I reply with your post?... Or, quote you? Just sayin' its unconstitutional.
> ...


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## Candy (Mar 18, 2011)

The Federal Reserve is constitutional. Congress created the Federal Reserve via the "necessary and proper cause" (implied powers) in the Constitution. These powers allow Congress to stretch their given (written) powers. The President appoints its members and Congress confirms them (checks and balances). Congress could do away with it or change it. Though the history lesson here is fascinating and the thoughts, comments and opinions interesting the story is rather one-sided. The FED performs some very important functions in our current economy. And although Jefferson and Madison opposed the idea of a national bank, Hamilton and Washington approved it. The concept was also supported by the Supreme Court in the case of McCulloch v. Maryland, which also gives some validity to the constitutionality of a national bank.


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## Candy (Mar 19, 2011)

I would love to find out how many people thought that the Health Care Bill was unconstitutional? Why?


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## terryo (Mar 21, 2011)

Candy, a few years ago my cousin was having a debate about Bush, and she had a stroke. Every since then I don't talk politics at all, but my husband ....looking over my shoulder....loves to debate and he wrote this. From HIM...not ME.
The unconstitutionality is the Government mandate all Americans must
purchase or be covered by Medical Insurance. If we're not in compliance the
IRS will impose a penalty in the form of a fine, in essence removing our freedom 
of choice and diminishing our liberties.
An outrageous comparison would be Government requiring every female
American to purchase a bikini each year regardless of age, size and shape, or 
their intention to suiting up in the outfit..Then government can initialize 
another agency to verify proof of purchase. Outrageous? Of course, however
when Government becomes involved, it usually culminates in something
ridiculous or needlessly expensive. Therefore if the Healthcare bill is
implemented in it's current form , it could be the start of Government forcing
us to purchase almost anything we will never utilize, or have a need for.
Unfortunately there are several other concerns with the bill. These include 
the extra burden placed upon taxpayers due to costs. The exemptions granted
to certain corporations and organizations. The sleazy deals made with select 
States to obtain their Congressional votes. All of these horrors, together with
the probability Government Bureaucrats will decide what medical procedures will 
be approved or available to us. All very disheartening, but we must keep in mind 
America and our system of government remains to be the best on the planet. 
Finally, I'm unaware of the percentage of Americans who lack the knowledge
of the adverse effects of Obamacare. If judging by voting patterns and recent
protests against State Governments trying to balance their budgets is used as 
a measurement, we are plagued by many.
Hopefully the voters and our Democrat Representatives,will someday soon realize
we're on the wrong track with Obamacare as well as other failing benefit programs 
before it's too late.


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## dmmj (Mar 21, 2011)

terryo your husband has clarified my thoughts about this to a scary point, is it ok if I use his words when debating this issue on other forums? I don't want to plagiarize but I could not come up with a more perfect post about this if I tried.


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## terryo (Mar 21, 2011)

Yes David...use it all you want. My husband has done many lectures for the bank that he works for. Politics is just a side bar for him. He loves to debate.


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## MischaR (Jul 3, 2011)

*The Federal Reserve Delays Implementation of Interchange Fees*

Interchange fees, also known as swipe fees for debit cards, have been limited by the Federal Reserve at 21 cents for every purchase.For the majority of merchants, interchange fees make up the largest component of processing costs.For card-not-present merchants, it typically represents over 2 percent of each credit card transaction. Managing these fees, particularly for card-not-present transactions, can save merchants thousands or millions of dollars annually depending on their transaction volume.The nation's central bank has also postponed the implementation of the cap until Oct. Retailers may require an additional payday loan to cover the charges and make do for now.


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## MischaR (Jul 3, 2011)

*The Federal Reserve Delays Implementation of Interchange Fees*

Interchange fees, also known as swipe fees for debit cards, have been limited by the Federal Reserve at 21 cents for every purchase.For the majority of merchants, interchange fees make up the largest component of processing costs.For card-not-present merchants, it typically represents over 2 percent of each credit card transaction. Managing these fees, particularly for card-not-present transactions, can save merchants thousands or millions of dollars annually depending on their transaction volume.The nation's central bank has also postponed the implementation of the cap until Oct. Retailers may require an additional payday loan to cover the charges and make do for now.


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