There has not been much talk about the Federal Reserve System (the Fed) in the past. Fortunately, this trend is reversing. In the past it was difficult to find some sunshine on this secretive central bank. In 2012, Rep. Ron Paul of Texas sponsored a bill to audit the Fed; the bill (H.R. 459) passed the House, 327-98. While this is a step in the right direction, more work needs done. Even the founding of the Federal Reserve is shrouded in mystery and deceit.
After a severe banking panic in 1907, did an outcry for a central bank take hold? This crisis was artificially created by the financial magnates of the time including J.P. Morgan, John Rockefeller, and Lord Rothschild to name a few. In 1913, in secret, heavy hitters in the banking and business sectors met on an island, aptly named Jekyll Island, to construct the Federal Reserve Act.
It passed the House and Senate on December 22 when many legislators took time off due to the Christmas holiday. Sometime after signing the bill into law, President Woodrow Wilson said "I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation is controlled by its system of credit. Our system of credit is concentrated. The growth of the nation, therefore, and all our activities are in the hands of a few men". His words are most profound.
Perhaps if Wilson lived today, he could see just how accurate his statement really is. Currently, the Fed controls the interest rates, monetary supply,inflation and sets standards on unemployment figures, a vast power indeed. The Fed Chairman, Ben Bernanke, could be considered the biggest inflationary man that ever existed. The American dollar is still the reserve currency of the world, for now. His influence can be felt around the world. In recent times, Bernanke thinks that the only way to fix this fiscal crisis is to create money out of thin air, which increases the inflation rate. The banks are holding this money from the Quantitative Easing (QE) program (continual printing of money) that the Fed is engaged in. It's easy to see who is getting rich from this scheme and it's not the poor or middle class. Where is the government oversight?
Sadly, the Fed is a private bank and, therefore, they operate outside the limits of Congressional authority. The Fed's policy of artificial credit and artificially lowering or raising the interest rates has led to virtually every single bubble that has swelled and burst.
Whether it be the dollar crisis in the 1970's, the dotcom crisis, the housing crisis, and the banking crisis; one can look at the Fed for culpability. The Fed will not change policy unless forced to do so. Until the American People realize that their money is being used as corporate and banking welfare, do not expect the Fed to alter its course. One final thought all U.S. currency is "Federal Reserve Notes" of debt, owed to the Fed. How can one pay a debt with currency borrowed from your debtors? It seems like the world's largest Ponzi scheme and the American People are the targets.
Submitted by Virtual Newsroom