A long time ago, in a much simpler time, the Federal Reserve Board and the Federal Reserve System were created by men seeking power and they understood that power came through the control of money, if you wanted power over the government. The fed was born of that concept. In 1987, William Greider, a writer for Rolling Stone wrote the definitive book on the fed, entitled, “Secrets of the temple, how the federal reserve runs the country”. William Greider wrote an amazing book, you can read online here. But, the title should have ended in “runs the world”.

In 1980 banks that were members of and doing business with the fed complained that the reserves they were required to keep at the fed was really a hidden tax, because the fed paid no interest on that money, whereas the large commercial banks that were non-members paid interest on reserves, therefore they were more competitive and able to offer lower interest rates. This complaint had been going on for years, but this time, the fed used the democrats in Congress to pull the wool over the eyes of the public. The Monetary Control Act of 1980, that the democrats pushed through Congress made a level playing field, kind of. It did away with the perceived tax upon member banks by making all banks as well as the savings & loans join the fed. It changed the financial world. The savings and loans crashed and through slight of hand, the liberals blamed the conservatives for elaborate spending and mismanagement of S&L funds, they blamed greed, they blamed everyone but the guilty parties, the democrats and the fed. This huge power grab resulted in the fed now controlling every bank in America.

Here is an example of how the fed creates money:

The Federal Open Market Committee is really key to the whole process of money creation or contraction. It consists of 12 members – seven members of the Board of Fed Governors, the president of the New York Fed Bank (the most important one of all) and four of the remaining 11 Reserve Bank presidents who serve one year terms on a rotating basis. The FOMC holds eight regularly scheduled meetings a year to assess economic conditions and decide how loose or tight it wants monetary policy to be to further its stated goal of sustainable economic growth and price stability.

The FOMC literally has the power to create money out of nothing. It does it in a four step process:

Step 1 – The FOMC first approves the purchase of US government bonds on the open market.

Step 2 – The New York Fed bank buys them from sellers (financial markets always have an equal number of buyers and sellers).

Step 3 – The Fed pays for its purchases with electronic credits to the sellers’ banks, which, in turn, credit the sellers’ bank accounts. These credits are literally created out of nothing.

Step 4 – The banks receiving the credits can then use them as reserves to enable them to loan out as much as 10 times their amount (if their reserve requirement is 10%) through the magic (only banks have) of fractional reserve banking and, of course, collect interest on all of it. What a business, and it’s all legal. Imagine how rich we might all be if we as private individuals could do the same thing. Borrow a million from the Fed and like magic it becomes 10 times as much, and we get to collect interest on all but the 10% of it we must hold in reserve. This is the magic of fractional reserve banking money creation and explains how powerful an economic stimulus it is when the Fed wants to enhance economic growth.

The Justice Department typically calls this type of behavior racketeering. But, it is how the fed manipulates the money. The President, Congress, you, me, nobody knows how well the books are cooked except the insiders. And, true to form, the creator of the beast that drives the US economy, the democratic party, refuses to allow for an audit of the Federal Reserve System. It is apparent that something isn’t right, but like the wizard, in the Wizard of Oz, no one wants us to see what is behind the curtain.

Ron Paul has more than 250 co-sponsors of HR 1207, a bill that would allow for an audit of the Federal Reserve System. He has 55% of the representatives in the House co-sponsoring this bill. It is still in committee. Why? Ask Nancy Pelosi, she will not allow the bill to be heard on the House floor. Here is what Ron Paul has to say:

Excerpt from Ron Paul’s 3/5/2009 appearance on Judge Andrew Napolitano’s Freedom Watch:

Judge Napolitano: Before we switch gears, Congressman Paul, how did Ben Bernanke react to the legislation that you introduced calling for an audit of the Fed. Did he give you a call on the phone?
Ron Paul: Oh yes, he called me, wanted to congratulate me and he wanted to support my bill. You know, interestingly, just recently, I cannot name his name but I was talking to a former member of the Federal Reserve board and told him about the bill and he was friendly enough.

I said, “What do you think of that?” He said, “I think it’s not a very good idea”. And I said, “Do the people at the Federal Reserve ever talk about, are concerned about the dollar”. I said, you know, I’m always talking about the dollar and what this is going to do to the dollar. And I said, “Do they know that all this debt and inflation could hurt the dollar?” He says, “Yes, they do.” He confirmed it. He said, “They absolutely do.” He says, “But they can’t answer your questions in public because it would cause panic.”

Senator Jim DeMint attempted today, to introduce into the Senate an amendment that would have called for an audit of the Federal Reserve System. Please follow the link and watch the video. It clearly shows that the democrats are far from “hope & change”, far from “transparency” and far from the “most ethical Congress” ever. In fact, DeMint takes the democrats to school over a host of rule 16 violations that they allowed into the bill DeMint was trying to amend and they also added an earmark to the bill, which is also a violation.

Contact Senator Kay Hagan and tell her what you think of her unethical behavior and contact Senator Jim DeMint, letting him know you appreciate his efforts. It also wouldn’t hurt to suggest he file ethics charges against Senator Hagan for her parliamentary prejudice and denial of equal representation to those voters who want an audit of the Federal Reserve System.

Bill Turner
Idaho State Director
The Patriotic Resistance
www.resistnet.com

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About Bill Turner

Pastor
Bill Turner (First American Patriot Church) is back in black. After
battling the forces of evil and serious health issues, Twitters
@Jihadihunter is back to provoke thought, emotion and action. You can
follow Bill on Facebookat the American Patriot Commissionand at Freedom Outlaw Radio
and Bill Turner is also the National Director United States of America Defence League USADL
found
at http://www.USADefenceLeague.org.Remember kids, although he is a pastor, he is prone to anti-social
behavior, bursts of anger and can often be seen flogging the left
wildly, with the antenna from a 1963 Chevy Impala. When asked, the FBI
had nothing good to say about Bill. Per Bill, “God bless America, except
you Godless Marxists.
You made your choice and you are on your own”.

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