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Ending the Federal Reserve: Why Private Banks shouldnt run governments

By Robert Rooks

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Throughout history, precious metals such as gold and silver have been used for trade, termed bullion, and since early history the coins of various issuers generally kingdoms and empires have been traded. The earliest known records of pre - coinage use of bullion for monetary exchange are from Mesopotamia and Egypt, dating from the third millennium BC (Williams, Cribb & Errington, 1997). In the present society of all the nations monetary systems and how they are intertwined within one another through the Stock Markets and international trade commissions among various other institutions, makes keeping peoples and companies currency and access to money safe, easy, and convenient an increasingly difficult task; more so than it was back in the late 14th to early 15th centuries when the modern banking system was implemented (Hoggson, 1926). A monetary system is the way a government decides the basis, value, and way their countrys money is made. The United States of America used to be operated under the Gold Standard, physical Gold and Silver would be used as tenders of wealth, paper money and coins would be issued out in its place and at any time could be redeemed for Gold and or Silver. However currently The United States of America and the European Union, also known as the EU; are both under a fiat currency monetary system (Foster, 2010). A Fiat currency system using fiat money is not backed by Gold and Silver; instead a central entity prints money and simply assigns a value to it. ("Fiat money,") Wealth in its modern definition is explained as an abundance of valuable resources or material possessions. The value of a particular resource is determined by that objects scarcity and need. Gold, Silver, Platinum, Diamonds, and various other objects are relatively scarce pertaining to other naturally occurring objects throughout the world. Oil and Coal are also valuable resources based off of need, as Coal and Oil makes a variety of other products and energy. Coined currency systems would make various sized coins out of precious metals such as Gold and Silver. With paper currency the issuance of bills were basically just a I Owe You to whomever it was given to so you could at your convenience take the notes to a Banking institution and exchange for actual physical Gold and or Sliver (Heilbroner, 1987). A central bank, reserve bank, or monetary authority is an institution that manages a states currency, money supply, and interest rates. Central banks also usually oversee the commercial banking system of their respective countries. In the United States of America this role is played by The Federal Reserve (Sullivan, & Sheffrin, 2003). Now this is the Federal Reserve Bank of the United States of Americas job by definition, it is a perfectly reasonable endeavor by most standards. However the hidden actions of the Federal Reserve and central banks just like it are sinister and flat out greedy and evil at the root core. The information surrounding my topic is vast and never ending, since the premise of this whole paper is ending the Federal Reserve Bank Ill narrow down it down to the offenses the Federal Reserve Bank has committed, and that of which are like it. The Federal Reserve System

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is the third central banking system in the United States' history. The First Bank of the United States (17911811) and the Second Bank of the United States (1817 1836) each had 20-year charters, and both issued currency, made commercial loans, accepted deposits, purchased securities, had multiple branches, and acted as fiscal agents for the U.S. Treasury (Johnson, 1998). In both banks the Federal Government was required to purchase 20% of the bank's capital stock and appoint 20% of the directors. Thus majority control was in the hands of private investors who purchased the rest of the stock. The banks were opposed by statechartered banks, who saw them as very large competitors, and by many who understood them to be banking cartels which compelled to them servitude of the common man. President Andrew Jackson, who by the way was the only United States President to fully pay off the entirety of National Debts; vetoed legislation to renew the Second Bank of the United States, starting a period of free banking. Jacksons whole campaign for his second term was on the issue of central banking stating, "Every monopoly and all exclusive privileges are granted at the expense of the public, which ought to receive a fair equivalent. The many millions which this act proposes to bestow on the stockholders of the existing bank must come directly or indirectly out of the earnings of the American people. (Jackson, 1832) There is no one single thing to point to and say this is the cause of societys seemingly never ending problem of corruption, greed, manipulation, war. But there is a select few events that perpetuated these issues deeper and more prevalent than ever. The thing about banks is they do not just lend people or countries money out of the goodness of their hearts. A bank will not do anything for you unless it is entirely in their best interest to do so. There has to be some kind of collateral or that of which like it attached which puts the borrower into a subservient position. This was true back in 1871 as well. Our weak fragile nation after being torn apart by Civil War, The conniving international bankers were not about to lend our floundering nation any money without some serious stipulations. So, they devised a brilliant way of gaining control of the United States (a prize they had coveted for some time, but had been unable to grasp because our Founding Fathers, after dealing with the likes of banks through British Parliament during the Revolutionary War despised international Bankers and held them in check), and thus, the Act of 1871 was passed. In essence, this Act formed the corporation known as THE UNITED STATES and separated Washington D.C. from the states as its own entity, also turning the Federal Government into a corporation. This corporation, owned by foreign interests, moved right in and manipulated the original "organic" version of the Constitution through series of amendments With the "Act of 1871," our Constitution was defaced in the sense that the title was block-capitalized and the word "for" was changed to the word "of" in the title. The original Constitution drafted by the Founding Fathers, was written in this manner "The Constitution for the United States of America" now known as The Constitution of the United States of America this went on for years.

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The system was designed out of a compromise between the competing philosophies of privatization and government regulation. In 2006 Donald L. Kohn, vice chairman of the Board of Governors, summarized the history of this compromise: Agrarian and progressive interests, led by William Jennings Bryan, favored a central bank under public, rather than banker, control. But the vast majority of the nation's bankers, concerned about government intervention in the banking business, opposed a central bank structure directed by political appointees. The legislation that Congress ultimately adopted in 1913 reflected a hard-fought battle to balance these two competing views and created the hybrid public-private, centralized-decentralized structure that we have today (Kohn, 2006). In the current system, private banks are for-profit businesses but government regulation places restrictions on what they can do. The Federal Reserve System is a part of government that regulates the private banks. The balance between privatization and government involvement is also seen in the structure of the system. Private Banks elects members of the board of directors at their regional Federal Reserve Bank while the members of the Board of Governors are selected by the President of the United States and confirmed by the Senate. The private banks give input to the government officials about their economic situation and these government officials use this input in Federal Reserve policy decisions. In the end, private banking businesses are able to run a profitable business while the U.S. government, through the Federal Reserve System, oversees and regulates the activities of the private banks. However The Federal Reserve is a private bank itself ran by a committee of Private bankers. Since United States and European Union are under Fiat Currency system nothing is needed to back their printing and issuing of the money supply for governments and its people, they loan money at interest to the nations and its citizens and unable to ever pay this debt off it effectively enslaves people to what is known as The Banking Cartel and launches a system of perpetual debt, a never ending cycle. Most people who are unassisted are launched into this viscous cycle as they venture off to college at a young age, taking out student loans from banks at interest, to pay for steadily climbing tuition fees and cost of living. While still paying taxes (taxes are supposed to be used by the government to pay the national debt balance, and help maintain the country and welfare of citizens.) and after graduation hope to find a job to pay back loans, while still paying taxes, while negotiating with a bank for payments on your house, car, property and so on and so forth. This has been going on for centuries in many societies, I guess the saying holds true that History repeats itself and since our gov ernment is manipulated by the very people that control the money supply, it is very easy for these people to corrupt and influence the people in power, or anybody with influence over the masses.

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References Fiat money. (n.d.). Retrieved from http://www.investopedia.com/terms/f/fiatmoney.asp Jonathan Williams with Joe Cribb and Elizabeth Errington, ed. (1997). Money a History. British Museum Press. pp. 1627, 111, 127, 131, 136, 136, ISBN 0-7141-0885-5. Hoggson, N. F. (1926) Banking Through the Ages, New York, Dodd, Mead & Company Foster, Ralph T. (2010). Fiat Paper Money--The History and Evolution of Our Currency. Berkeley, California: Foster Publishing. pp. 5960. ISBN 978-0-9643066-1-5. Robert L. Heilbroner, 1987 [2008. The New Palgrave: A Dictionary of Economics, v. 4, pp. 880-83 Sullivan, arthur; Steven M. Sheffrin (2003). Economics: Principles in action. Upper Saddle River, New Jersey 07458: Pearson Prentice Hall. p. 254. ISBN 0-13-063085-3. Johnson, Roger T. "Historical Beginnings ... The Federal Reserve". Federal Reserve Bank of Boston. Andrew Jackson, "Veto Message, Washington, July 10, 1832," in Richardson, ed., Messages and Papers of the Presidents, II, 576-591. "FRB: Speech-Kohn, the Evolving Role of the Federal Reserve Banks". Federalreserve.gov. November 3, 2006. Retrieved August 29, 2011.