Audit and Abolish the Fed

“I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.”

 

“All the perplexities, confusions, and distress in America, arise, not from defects in their Constitution or Confederation, not from a want of honor or virtue, so much as downright ignorance of the nature of coin, credit and circulation.”

 

-Thomas Jefferson

 

I am happy to see that HR 1207, Federal Reserve Transparency Act of 2009 now has 165 co-sponsors. Is your Representative on the list?  

 

There’s nothing like a massive loss of faith in the financial system to motivate more people to stop and ask the question, “So where does our money come from”? The history of the Federal Reserve is a web of obfuscation and double speak which on the surface, without closer inspection, resembles legitimacy.

 

The party line is that the Federal Reserve is "within" the Federal government, but its essence is a private organization that, to borrow a line, "is no more Federal than Federal Express."

 

I can't be clearer here: The Federal Reserve is not a national central bank under direct control of the U.S. government and its people. Yes, central banks are needed to implement a country's fiscal policies, ensure the national banking system maintains sufficient assets to remain solvent and stable and performs currency transactions with other central banks. But the Federal Reserve is not a national central bank. The Federal Reserve is privately owned and can therefore only be expected to operate in the best interest of the banks that hold ownership positions and who benefit through reckless monetary policies which are harmful to the public.

 

Alan Greenspan, ex-Federal Reserve Chairman, made it clear in this video that the Fed is an independent agency and no agency of government which can overrule actions that it takes. Bill Bonner and Addison Wiggin describe the origins of the Reserve System in their book, "Empire of Debt,"

 

“They met at Jekyll Island off the coast of Georgia, in seclusion and secrecy, to discuss formation of a centralized monetary agency. Senator Nelson Aldrich met with executives of what is today known as Citibank; Morgan Bank; and Kuhn, Loeb Investment House. The so-called Aldrich Plan recommended the formation of 15 regional banks controlled by a national board. The banks would be allowed to make emergency loans to members and create a flexible currency, serving as the monetary arm of the federal government. Although the original plan was defeated in the House, the formula modeled what is now known as the Federal Reserve System. The legislation, variously called the Currency Bill and the Owens- Glass Act, emerged as the Federal Reserve Act of 1913. It created a dozen regional Reserve Banks to be coordinated by a chairman who would be appointed by the president. While the Constitution grants Congress the right to print money, under the Federal Reserve Act of 1913, Congress approved a plan to delegate this right to the Fed, which is not part of Congress. The U.S. dollar is not issued by the U.S. Treasury but by a privately owned organization, which also influences bank interest rates, the amount of money in currency in circulation, and even the levels of inflation in the United States.

 

 

When leaving office, Woodrow Wilson apologized to the American public for being seduced by bankers understanding the tragic course he set his country on.

 

"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. We have come to be one of the worst ruled, one of the most completely controlled and dominated Governments in the civilized world no longer a Government by free opinion, no longer a Government by conviction and the vote of the majority, but a Government by the opinion and duress of a small group of dominant men."

 

 

Back to Greenspan’s comments. Didn’t he garble something at the end that seemed to imply some sort of oversight? According to Section 714 of title 31, United States Code, the Comptroller General can audit the agency, but only if the Fed consents in writing. Imagine if the IRS used those terms with taxpayers – we can audit you, but not unless you write a letter granting us permission. How many letters of acceptance do you suppose the IRS would get?

 

Even with this full proof restriction, the Comptroller General cannot  audit:

 

Transactions for or with a foreign central bank, government or a foreign country, or nonprivate international financing organization;

 

Deliberations, decisions or actions on monetary policy matters, including discounty window operations, reserves of member banks, securities credit, interest on deposits, and open market operations;

 

Transactions made under the direction of the Federal Open Market Committee, or

 

A part of a discussion or communication among or between members of the Board of Governors and officers and employees of the Federal Reserve System related to clauses 1-3 of this subsection.

 

So no, there is no auditing and no oversight of the Federal Reserve by the people’s representatives regardless of what you are being told.

 

HR 1207 would simply require an audit and strike these ridiculous and far-reaching exclusions of an already unconstitutional and illegitimate banking cartel.

HR 1207 IH

111th CONGRESS

1st Session

H. R. 1207

To amend title 31, United States Code, to reform the manner in which the Board of Governors of the Federal Reserve System is audited by the Comptroller General of the United States and the manner in which such audits are reported, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

February 26, 2009

Mr. PAUL (for himself, Mr. KAGEN, Mrs. BACHMANN, Mr. BARTLETT, Mr. JONES, Mr. REHBERG, Mr. POSEY, Mr. BROUN of Georgia, Mr. POE of Texas, Mr. BURTON of Indiana, Mr. ABERCROMBIE, and Ms. WOOLSEY) introduced the following bill; which was referred to the Committee on Financial Services

---

A BILL

To amend title 31, United States Code, to reform the manner in which the Board of Governors of the Federal Reserve System is audited by the Comptroller General of the United States and the manner in which such audits are reported, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ‘Federal Reserve Transparency Act of 2009’.

SEC. 2. AUDIT REFORM AND TRANSPARENCY FOR THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM.

(a) In General- Subsection (b) of section 714 of title 31, United States Code, is amended by striking all after ‘shall audit an agency’ and inserting a period.

(b) Audit- Section 714 of title 31, United States Code, is amended by adding at the end the following new subsection:

‘(e) Audit and Report of the Federal Reserve System-

‘(1) IN GENERAL- The audit of the Board of Governors of the Federal Reserve System and the Federal reserve banks under subsection (b) shall be completed before the end of 2010.

‘(2) REPORT-

‘(A) REQUIRED- A report on the audit referred to in paragraph (1) shall be submitted by the Comptroller General to the Congress before the end of the 90-day period beginning on the date on which such audit is completed and made available to the Speaker of the House, the majority and minority leaders of the House of Representatives, the majority and minority leaders of the Senate, the Chairman and Ranking Member of the committee and each subcommittee of jurisdiction in the House of Representatives and the Senate, and any other Member of Congress who requests it.

‘(B) CONTENTS- The report under subparagraph (A) shall include a detailed description of the findings and conclusion of the Comptroller General with respect to the audit that is the subject of the report, together with such recommendations for legislative or administrative action as the Comptroller General may determine to be appropriate.’.

 

 

So who owns the Fed?

 

The Federal Reserve Banks of each region are owned by the member banks of the Federal Reserve Region and create ownership by issuing stock to the member banks, which are private banks.

 

The charts and text below from Staff Report, Committee on Banking, Currency and Housing, House of Representatives, 94th Congress, 2nd Session, August 1976 illustrate the stockholders list of the 12 regional Federal Reserve Banks. The ownership list is a who's who of financial corporate stakeholders.

 

This is a matter of Congressional record, not conspiracy theories.

 

Until we change the monetary system, nothing changes.

 

Federal Reserve Directors: A Study of Corporate and Banking Influence

Published 1976

Chart 1 reveals the linear connection between the Rothschilds and the Bank of England, and the London banking houses which ultimately control the Federal Reserve Banks through their stockholdings of bank stock and their subsidiary firms in New York. The two principal Rothschild representatives in New York, J. P. Morgan Co., and Kuhn,Loeb & Co. were the firms which set up the Jekyll Island Conference at which the Federal Reserve Act was drafted, who directed the subsequent successful campaign to have the plan enacted into law by Congress, and who purchased the controlling amounts of stock in the Federal Reserve Bank of New York in 1914. These firms had their principal officers appointed to the Federal Reserve Board of Governors and the Federal Advisory Council in 1914. In 1914 a few families (blood or business related) owning controlling stock in existing banks (such as in New York City) caused those banks to purchase controlling shares in the Federal Reserve regional banks. Examination of the charts and text in the House Banking Committee Staff Report of August, 1976 and the current stockholders list of the 12 regional Federal Reserve Banks show this same family control.

							    N.M. Rothschild , London - Bank of England

								 ______________________________________

							    |									 |

							    |						   J. Henry Schroder	 

	    						|							 Banking | Corp.

							    |									 |

						  Brown, Shipley - Morgan Grenfell - Lazard - |

						   & Company	    & Company	   Brothers  |

							    |			   |			  |	  |

		    --------------------|	    -------|			  |	  |

		    |				   |	    |	  |			  |	  |

 Alex Brown - Brown Bros. - Lord Mantagu - Morgan et Cie -- Lazard ---| 

 & Son	  |  Harriman	   Norman	 |    Paris		  Bros	 |

		    |				   |	    /	  |		    N.Y.	 |

		    |				   |	   |	   |			  |	  |

		    |		    Governor, Bank | J.P. Morgan Co -- Lazard ---| 

			|		    of England    /  N.Y. Morgan	   Freres    |   

			|		    1924-1938    /   Guaranty Co.	  Paris	 |

		    |					    /    Morgan Stanley Co.  |	  / 

			|					   /		   |			  \Schroder Bank   

			|					  /		    |			  Hamburg/Berlin

		    |					 /      Drexel & Company		 /  

			|				    /	   Philadelphia		    / 

			|				   /							   /

		    |				  /						   Lord Airlie

		    |	  		   /							   /

		    |			    /	 M. M. Warburg	   Chmn J. Henry Schroder

		    |			    |	  Hamburg ---------  marr. Virginia F. Ryan

		    |			    |		 |			   grand-daughter of Otto

		    |			    |		 |			    Kahn of Kuhn Loeb Co.

		    |			    |		 |					    

			|			    |		 |					    

Lehman Brothers N.Y -------------- Kuhn Loeb Co. N. Y.						 

			|			    |	 --------------------------					 

   µ

		    |			    |	   |					  |					 

		   8

		    |    			|	   |					  |

Lehman Brothers - Mont. Alabama   Solomon Loeb		   Abraham Kuhn

		    |			    |	 __|______________________|_________

Lehman-Stern, New Orleans   Jacob Schiff/Theresa Loeb  Nina Loeb/Paul Warburg

-------------------------    |	   |					  |

			 |			   | Mortimer Schiff	    James Paul Warburg

_____________|_______________/	   |

|		    |		  |   |	    |

Mayer Lehman |	 Emmanuel Lehman    \

|		    |		  |			  \

Herbert Lehman	 Irving Lehman	    \

|		    |		  |			    \

Arthur Lehman \    Phillip Lehman	 John Schiff/Edith Brevoort Baker

			  /		 |			 Present Chairman Lehman Bros

			 /  Robert Owen Lehman    Kuhn Loeb - Granddaughter of

		    /		   |			 George F. Baker

		   |		   /			   |

		   |		  /			    |

		   |		 /		   Lehman Bros Kuhn Loeb (1980)

		   |	    /				  |

		   |	   /			 Thomas Fortune Ryan

		   |	  |				    |

		   |	  |				    |

	  Federal Reserve Bank Of New York |

		   ||||||||				    |

  ______National City Bank N. Y.	   |

  |	    |						   |

  |   National Bank of Commerce N.Y ---|

  |	    |						    \

  |   Hanover National Bank N.Y.		 \

  |	    |		    				  \

  |   Chase National Bank N.Y.			 \

  |									    |

  |									    |

Shareholders - National City Bank - N.Y.   | 

-----------------------------------------  |  

  |	 								   /

James Stillman						    /

Elsie m. William Rockefeller			 /

Isabel m.  Percy Rockefeller		    / 

William Rockefeller		  Shareholders - National Bank of Commerce N. Y.   

J. P. Morgan				 -----------------------------------------------

M.T. Pyne				    Equitable Life - J.P. Morgan

Percy Pyne				   Mutual Life - J.P. Morgan

J.W. Sterling			    H.P. Davison - J. P. Morgan

NY Trust/NY Edison 		  Mary W. Harriman

Shearman & Sterling		  A.D. Jiullard - North British Merc. Insurance

|						    Jacob Schiff

|						    Thomas F. Ryan

|						    Paul Warburg

|						    Levi P. Morton - Guaranty Trust - J. P. Morgan

|

|

Shareholders - First National Bank of N.Y.

-------------------------------------------

J.P. Morgan

George F. Baker

George F. Baker Jr.

Edith Brevoort Baker

US Congress - 1946-64

|

|

|

|

|

Shareholders - Hanover National Bank N.Y.

------------------------------------------

James Stillman

William Rockefeller

|

|

|

|

|

Shareholders - Chase National Bank N.Y.

---------------------------------------

George F. Baker

Chart 2

Federal Reserve Directors: A Study of Corporate and Banking Influence

- Published 1983

The J. Henry Schroder Banking Company chart encompasses the entire history of the twentieth century, embracing as it does the program (Belgium Relief Commission) which provisioned Germany from 1915-1918 and dissuaded Germany from seeking peace in 1916; financing Hitler in 1933 so as to make a Second World War possible; backing the Presidential campaign of Herbert Hoover ; and even at the present time, having two of its major executives of its subsidiary firm, Bechtel Corporation serving as Secretary of Defense and Secretary of State in the Reagan Administration.

The head of the Bank of England since 1973, Sir Gordon Richardson, Governor of the Bank of England (controlled by the House of Rothschild) was chairman of J. Henry Schroder Wagg and Company of London from 1963-72, and director of J. Henry Schroder,New York and Schroder Banking Corporation,New York,as well as Lloyd's Bank of London, and Rolls Royce. He maintains a residence on Sutton Place in New York City, and as head of "The London Connection," can be said to be the single most influential banker in the world.

J. Henry Schroder

							   -----------------

									  |

									  |

									  |

						  Baron Rudolph Von Schroder

						   Hamburg - 1858 - 1934

									  |

									  |

									  |

						    Baron Bruno Von Schroder

						    Hamburg - 1867 - 1940

 F. C. Tiarks	 					|

 1874-1952						    |

	 |							    |

 marr. Emma Franziska				 |

 (Hamburg)				    Helmut B. Schroder

 J. Henry Schroder 1902			   |

 Dir. Bank of England    			 |

 Dir. Anglo-Iranian				   |

 Oil Company		 J. Henry Schroder Banking Company N.Y.

									  |

									  |

					   J. Henry Schroder Trust Company N.Y.

 									 |

									  |

									  |

				   ___________________|____________________

				  |									    |

		    Allen Dulles							  John Foster Dulles

		  Sullivan & Cromwell					    Sullivan & Cromwell

		  Director - CIA							 U. S. Secretary of State

										    		 Rockefeller Foundation

 Prentiss Gray

 ------------

Belgian Relief Comm.					 Lord Airlie

Chief Marine Transportation			  -----------

US Food Administration WW I		  Chairman; Virgina Fortune

Manati Sugar Co. American &		  Ryan daughter of Otto Kahn

British Continental Corp.		    of Kuhn,Loeb Co.

	   |								    |

	   |								    |

 M. E. Rionda							   |

 ------------		    				   |

Pres. Cuba Cane Sugar Co.				   |

Manati Sugar Co. many other				 |

sugar companies.					 _______|	   

	   |						    |

	   |						    |

 G. A. Zabriskie				    |

 ---------------				    |			    Emile Francoui

Chmn U.S. Sugar Equalization	    |			    --------------

Board 1917-18; Pres Empire		  |		    Belgian Relief Comm. Kai

Biscuit Co., Columbia Baking	    |		    Ping Coal Mines, Tientsin

Co. , Southern Baking Co.		   |		    Railroad,Congo Copper, La

								    |		    Banque Nationale de Belgique

			 Suite 2000 42 Broadway | N. Y	    			  |

		  __________________________|___________________________|_

		 |						  |						   |

		 |						  |						   |

    Edgar Richard		    Julius H. Barnes			 Herbert Hoover

    -------------		    ----------------			 --------------   

Belgium Relief Comm		 Belgium Relief Comm	   Chmn Belgium Relief Com

Amer Relief Comm		    Pres Grain Corp.		   U.S. Food Admin

U.S. Food Admin			 U.S. Food Admin		   Sec of Commerce 1924-28

1918-24, Hazeltine Corp.    1917-18, C.B Pitney	   Kaiping Coal Mines

   |					    Bowes Corp, Manati	    Congo Copper, President

   |		  			  Sugar Corp.				  U.S. 1928-32

   |

   |

   |

John Lowery Simpson

-------------------					  

Sacramento,Calif Belgium Relief					   |

Comm. U. S. Food Administration			 Baron Kurt Von Schroder

Prentiss Gray Co. J. Henry Schroder		 -----------------------

Trust, Schroder-Rockefeller, Chmn		 Schroder Banking Corp. J.H. Stein

Fin Comm, Bechtel International		   Bankhaus (Hitler's personal bank

Co. Bechtel Co. (Casper Weinberger  	  account) served on board of all

Sec of Defense, George P. Schultz		 German subsidiaries of ITT . Bank

Sec of State (Reagan Admin).			  for International Settlements,

		    |							 SS Senior Group Leader,Himmler's

		    |							 Circle of Friends (Nazi Fund),

		    |							 Deutsche Reichsbank,president

		    |

		    |

Schroder-Rockefeller & Co. , N.Y.

---------------------------------

Avery Rockefeller, J. Henry Schroder

Banking Corp., Bechtel Co., Bechtel

International Co. , Canadian Bechtel

Company.		  |

				  |

				  |

				  |

		 Gordon Richardson

		 -----------------

Governor, Bank of England

1973-PRESENT C.B. of J. Henry Schroder N.Y.

Schroder Banking Co., New York, Lloyds Bank

Rolls Royce

Chart 3

Federal Reserve Directors: A Study of Corporate and Banking Influence

- Published 1976

The David Rockefeller chart shows the link between the Federal Reserve Bank of New York,Standard Oil of Indiana,General Motors and Allied Chemical Corportion (Eugene Meyer family) and Equitable Life (J. P. Morgan).

DAVID ROCKEFELLER

----------------------------

Chairman of the Board

Chase Manhattan Corp

	  |

	  |

______|_______________________

Chase Manhattan Corp.	    |    

Officer & Director Interlocks|---------------------

------|-----------------------			  	  |

	  |										   |

Private Investment Co. for America	   Allied Chemicals Corp.

	  |										   |

Firestone Tire & Rubber Company		  General Motors			  

	  |   										|

Orion Multinational Services Ltd.	    Rockefeller Family & Associates

	  |										   |

ASARCO. Inc							  Chrysler Corp.

	  |						  				 |

Southern Peru Copper Corp.			   Intl' Basic Economy Corp.

	  |										   |

Industrial Minerva Mexico S.A.		   R.H. Macy & Co.

	  |										   |

Continental Corp.					    Selected Risk Investments S.A.

	  |										   |

Honeywell Inc.						   Omega Fund, Inc.

	  |										   |

Northwest Airlines, Inc.	   		  Squibb Corporation

	  |										   |

Northwestern Bell Telephone Co.		  Olin Foundation  

	  |										   |

Minnesota Mining & Mfg Co (3M)		   Mutual Benefit Life Ins. Co. of NJ

	  |										   |

American Express Co.						    AT & T   

	  |										   |

Hewlett Packard						  Pacific Northwestern Bell Co.

	  |    									   |

FMC Corporation						  BeachviLime Ltd.

	  |										   |

Utah Intl' Inc.						  Eveleth Expansion Company

	  |							   			|

Exxon Corporation					    Fidelity Union Bancorporation

	  |										   |

International Nickel/Canada			  Cypress Woods Corporation

	  |										   |

Federated Capital Corporation		    Intl' Minerals & Chemical Corp.

	  |										   |

Equitable Life Assurance Soc U.S.	    Burlington Industries

	  |										   |

Federated Dept Stores				    Wachovia Corporation

	  |										   |

General Electric						 Jefferson Pilot Corporation

	  |										   |

Scott Paper Co.					  	R. J. Reynolds Industries Inc.

	  |										   |

American Petroleum Institute			 United States Steel Corp.

	  |										   |

Richardson Merril Inc.				   Metropolitan Life Insurance Co.

	  |										   |

May Department Stores Co.			    Norton-Simon Inc.

	  |										   |

Sperry Rand Corporation				  Stone-Webster Inc.

	  |   										|

San Salvador Development Company		 Standard Oil of Indiana

Chart 4
Federal Reserve Directors: A Study of Corporate and Banking Influence
- Published 1976 
This chart shows the interlocks between the Federal Reserve Bank of New York J. Henry Schroder Banking Corp., J. Henry Schroder Trust Co., Rockefeller Center, Inc., Equitable Life Assurance Society ( J.P. Morgan), and the Federal Reserve Bank of Boston. 

 Alan Pifer, President

Carnegie Corporation

of New York

----------------------

		 |

		 |

----------------------

Carnegie Corporation

Trustee Interlocks	   --------------------------

----------------------						    |

		 |									    |

Rockefeller Center, Inc				 J. Henry Schroder Trust Company

		 |									    |

The Cabot Corporation				   Paul Revere Investors, Inc.

		 |									    |

Federal Reserve Bank of Boston		  Qualpeco, Inc.

		 |

Owens Corning Fiberglas

		 |

New England Telephone Co.

		 |

Fisher Scientific Company

		 |

Mellon National Corporation

		 |

Equitable Life Assurance Society

		 |

Twentieth Century Fox Corporation

		 |

J. Henry Schroder Banking Corporation

Chart 5

Federal Reserve Directors: A Study of Corporate and Banking Influence

- Published 1976 

This chart shows the link between the Federal Reserve Bank of New York, Brown Brothers Harriman,Sun Life Assurance Co. (N.M. Rothschild and Sons), and the Rockefeller Foundation.

Maurice F. Granville

Chairman of The Board

Texaco Incorporated

----------------------

	    |

	    |

Texaco Officer & Director Interlocks  ---------------- Liggett & Myers, Inc.

------------------------------------		   |

	    |		   						   |

	    |									  |

 L  Arabian American Oil Company		    St John d'el Ray Mining Co. Ltd.

 O	  |									  |

 N  Brown Brothers Harriman & Co.		   National Steel Corporation

 D	  |									  |

 O  Brown Harriman & Intl' Banks Ltd.	   Massey-Ferguson Ltd.

 N	  |									  |

    American Express					    Mutual Life Insurance Co.

    	|									  |

 N. American Express Intl' Banking Corp.    Mass Mutual Income Investors Inc.

 M.	 |									  |

    Anaconda							    United Services Life Ins. Co.

 R	  | 									 |

 O  Rockefeller Foundation				  Fairchild Industries

 T	  |									  |

 H  Owens-Corning Fiberglas				 Blount, Inc.

 S	  |									  |

 C  National City Bank (Cleveland)		  William Wrigley Jr. Co

 H	  |									  |

 I  Sun Life Assurance Co.				  National Blvd. Bank of Chicago

 L	  |									  |

 D  General Reinsurance					 Lykes Youngstown Corporation

	    |									  |

    General Electric (NBC)				  Inmount Corporation

Comments

[Cleon Sanders]

You've made this tired point before. Let's say the Fed is an evil organization controlled by the wealthy (wow! rich people having power!). With what do you propose replacing it?

[Anon]

Cleon - The problem is not rich people having power....it is corrupt people having power

[Admin]

Cleon: Tired points are my favorites!

The alternative to creating money from nothing, backed by nothing other than "full faith and credit" is already spelled out by our Constitution which holds that Congress controls monetary policy.

As for the Fed being good or evil, I'd be fine even if Dr. Evil himself, acting under the authority of Congress, in all his evil-doing with pinky tucked into cheek issued the Bank of Evil currency - whether the currency was actually issued under the Department of Treasury or through a competing private bank - so long as the currency being issued was backed by something tangible - (e.g. commodities, gold, silver) - and private parties as well as governments had full redemption rights.