US/Federal Reserve

US/Federal Reserve
Formation	December 23, 1913
Interests	Petrodollar
Interest of	Charles August Lindbergh
Subpage	•US/Federal Reserve/Chair •US/Federal Reserve/New York •US/Federal Reserve/Vice Chair
The privately held cartel which profits off the US$ monopoly. It was set up by a group of large financiers on December 23, 1913 after the failure of earlier privatisations by stealth of the US money supply. The petrodollar allowed this system to make global profits during much of the 20th century.

Official narrative

The public at large is encouraged to overlook the fact that this is a private business that was set up by Wall St. bankers, and much is made of the token (irrelevant) public elements.

Profits

Charging interest on all the United States dollars in existence is a pretty lucrative affair... not least because the petrodollar policy effectively made the US dollar the world's reserve currency.

Concepts and Misconceptions

• True: fiat money is brought into existence by imposing debt on people.

• True: government debt is the primary security accepted by the Federal Reserve System to create "high powered money", which in turn is the basis of other forms of debt.

• True: the amount of government debt is not limited per se, given that tax payments of future generations act as collateral for the government.

• False: interest is a design error of the current monetary system. Interest is a way to ensure scarcity (and profit for those who run the system). Without such a limiting factor the system would not work, because fiat money would have no "value".

• False: money based on debt can be easily replaced by money based on real assets (including government tax certificates). Money based on real assets would radically change the income and power structure of the present society (prosperity of the few). The ability to inflate debt money was and is used to overpower the limited amount of money that can be created based on real assets.

• True: seeking profit equals seeking debt for others. Indebted people and nations may loose part of their autonomy if they fail to bring in the interest.

• True: the fact that the Federal Reserve System is a zero sum game is misrepresented at school. If people were told that they can win only if somebody else looses, they would very likely disagee with such an arrangement.

Who's paying the interest?

Susan George, Transnational Institute chair, says:

"Sub-Saharan Africa, which is the poorest part of the world, is paying 25,000 dollars every minute to Northern creditors. Well, you could build a lot of schools, a lot of hospitals, a lot of jobs – you could make a lot of job creation, if you were using 25,000 dollars a minute differently from debt repayment. So there is this drain, and I think people don’t understand that it is actually the South that is financing the North. If you look at the flows of money from North to South, and then from South to North, what you find is that the South is financing the North to the tune of about 200 billion dollars every year."

Further reading

• Popp, E. The Great Cookie Jar - Taking The Mysteries Out Of The Money System
• The Federal Reserve Bank of Chicago: Modern Money Mechanics - A Workbook on Bank Reserves and Deposit Expansion
• Wizards of Money Series
• Nitzan, Jonathan and Bichler, Shimshon (2009) Capital as Power. A Study of Order and Creorder. RIPE Series in Global Political Economy. London and New York. Routledge.

 

Related Quotations

Page	Quote	Author	Date
Louis McFadden	“Mr. Chairman, we have in this country one of the most corrupt institutions the world has ever known. I refer to the Federal Reserve Board and the Federal reserve banks. The Federal Reserve Board, a Government board, has cheated the Government of the United States out of enough money to pay the national debt. The depredations and the iniquities of the Federal Reserve Board and the Federal reserve banks acting together have cost this country enough money to pay the national debt several times over. This evil institution has impoverished and ruined the people of the United States; has bankrupted itself, and has practically bankrupted our Government. It has done this through defects of the law under which it operates, through the maladministration of that law by the Federal Reserve Board and through the corrupt practices of the moneyed vultures who control it. From the Atlantic to the Pacific our country has been ravaged and laid waste by the evil practices of the Federal Reserve Board and the Federal Reserve banks and the interests which control them … This is an era of economic misery, and for the conditions that caused that misery, the Federal Reserve Board and the Federal Reserve banks are fully liable. The imperial power of elasticity of the public currency is wielded exclusively by the central corporations owned by the banks. This is a life and death power over all local banks and all business. It can be used to create or destroy prosperity, to ward off or cause stringencies and panics. By making money artificially scarce, interest rates throughout the Country can be arbitrarily raised and the bank tax on all business and cost of living increased for the profit of the banks owning these regional central banks, and without the slightest benefit to the people. The 12 Corporations together cover and monopolize and use for private gain every dollar of the public currency and all public revenue of the United States. Not a dollar can be put into circulation among the people by their Government, without the consent of and on terms fixed by these 12 private money trusts.'”	Louis McFadden	1934
Paul Volcker	“In 1952, straight from the London School of Economics, Volcker joined the Federal Reserve Bank of New York as an economist. He stayed for five years, until 1957, at which time Volcker moved from Liberty Street to become an economist for Chase Manhattan Bank, where he stayed for four years, until 1961. In 1961, Volcker went to the Treasury Department in Washington, thus completing the first round of his three stop "revolving door." Appointed as Deputy Undersecretary for Monetary Affairs, he held that job just long enough to learn the ropes in Washington, and returned to New York, to Chase Manhattan Bank, as Vice President in charge of Planning. After three years in that post, Volcker left in 1969 to become Undersecretary for Monetary Affairs at the U. S. Treasury Department. After five years, Volcker completed the second round of his "revolving door" with an appointment as President of the Federal Reserve Bank of New York. Volcker is also a member of the Council on Foreign Relations, the Rockefeller Foundation and the American Friends of the London School of Economics. If Paul Volcker was a solitary phenomenon, we could make no case for Trilateral control of the Federal Reserve System. In fact, the Volcker phenomenon is one of a dozen parallel situations.”	Paul Volcker Antony Sutton

 

Related Document

Title	Type	Publication date	Author(s)	Description
File:The Federal Reserve conspiracy by Antony C Sutton.pdf	book		Antony Sutton	Historical perspectives on the money trust including critique of Karl Marx

Many thanks to our Patrons who cover ~2/3 of our hosting bill. Please join them if you can.

This is a page stub. Please add to it.