- "I still can't get over the whole Federal Reserve
- Consider the following - - let's take a situation where
the U.S. government needs money. The U.S. doesn't just issue United States
Notes, which, of course it could. These notes would be dollars backed by
the full faith and credit of the United States. No, the U.S. doesn't issue
dollars straight out of the U.S. Treasury.
- This is what the U.S. does - - it issues Treasury Bonds.
The U.S. then sells these bonds to the Fed. The Fed buys the bonds. Wait,
how does the Fed pay for the bonds? The Fed simply creates money "out
of thin air" (book-keeping entry) with which it buys the bonds. The
money that the Fed creates from nowhere then goes to the U.S. The Fed holds
the U.S. bonds, and the unbelievable irony is that the U.S. then pays interest
on the very bonds that the U.S. itself issued. (With great profit to the
private owners of The Fed - - Ed. Note) The mind boggles.
- The damnable result is that the Fed effectively controls
the U.S. money supply. The Fed is not even a branch of the U.S. government.
The Fed is not mentioned in the Constitution of the United States. No Constitutional
amendment was ever created or voted on to accept the Fed. The Constitutionality
of the Federal Reserve has never come before the Supreme Court. The Fed
is a private bank that keeps the U.S. forever in debt - - or I should say
in increasing debt along with ever rising interest payments.
- How did the Fed get away with this outrage? A tiny secretive
group of bankers sneaked through a bill in 1913 at a time when many in
Congress were absent. Those who were there and voted for the bill didn't
realize (as so often happens) what they were voting for (shades of the
shameful 2002 vote to hand over to President Bush the power to decide on
war with Iraq)."
- Richard Russell, "Richards Remarks," <http://dowtheoryletters.com>dowtheoryletters.com,
March 27 2007