Below is quote from Representative Louis T. McFadden, Chairman of the Committee on Banking
and Currency for 12 years as quoted from the Congressional Record
The Federal Reserve Board, ..., has
cheated the Government of the United States and the people of the United States out of
enough money to pay the national debt...Our people's money to the extend of $1,200,000,000
has within the last few months been shipped abroad to redeem Federal Reserve Notes and to
pay other gambling debts of the traitorous Federal Reserve Board and the Federal Reserve
SUMMARY OF QUICK FACTS
1a. The Federal Reserve (FED) is a PRIVATELY OWNED, organization. Unbelievable? Check the
b. Below is the list of the owners of the 12 Central Banks:
- Rothschild Bank of London
- Rothschild Bank of Berlin
- Lazard Brothers of Paris
- Israel Moses Seif Banks of Italy
- Warburg Bank of Amsterdam
- Warburg Bank of Hamburg
- Lehman Brothers of New York
- Kuhn Loeb Bank of New York
- Goldman, Schs of New York
- Chase Manhattan Bank of New York
In all, there are about 300 VERY POWERFUL, partly foreign individuals that owns the FED.
2. Although the FED is required to give back most of its PROFITS back to the Treasury
Dept., there is NO ORGANIZATION that has the power to AUDIT the FED (not even the Congress
or the IRS). This creates a HUGE opportunity for "creative accounting" to hide
the profit that ROBS the US Tax Payers Hundreds of Billions of Dollars annually.
3. Every year, a few Congressmen introduced a legislation to AUDIT the FED, and every
year, the legislation is defeated. The owners of the FED is the most powerful, invisible
lobbying power there is.
4. The owners of the FED own the controlling interests in ALL major media in the US.
Rockefeller, through Chase Manhattan bank, controls CBS and ABC and 28 other broadcasting
firms. Each of the other owners of the FED also have controlling interest in the US media.
This explain why the media have
been silent about the FED scam. The FED fraud is the biggest and longest cover-up in the
5. According to Article 1, Section 8 of the Constitution, the US Congress has the power to
print money (The Congress shall have the power...to coin money, regulate the value
thereof, and of foreign coin, ..). According to the Supreme Court, the Congress can not
transfer its power to other organization like the FED.
HISTORY OF THE FED
After several attempts to push the Federal Reserve Banking Act through Congress, a group
of bankers funded and staffed Woodrow Wilson's campaign for President. In 1913, Nelson
Aldrich, maternal grandfather to the Rockefellers, pushed the Federal Reserve Act through
Congress just before Christmas, when most Congressmen were on vacation. Naturally,
president Wilson passed the Act when he was elected as a pay back to the bankers.
HOW THE OWNERS OF THE FED PROFIT
AT OUR EXPENSE
The US goverment runs a $400 billion deficit annually. To cover this, the US goverment
issues bonds which are bought by the FED.
Since the FED has the POWER TO PRINT MONEY, it can buy any amount of the US. Government
bonds at almost NO COST, save for the expense of printing money (~3 cents/$100).
At this point, the owners of the FED already profit $99.97 for every 3c they invested to
print the money. Basically, they exchange something that costs almost nothing to them with
the US Government Bonds.
Since the FED can NOT be AUDITTED by the IRS (or even by Congress), most of this profit
can go anywhere the FED owners want to. BTW, did I mention that the profit is TAX-FREE?
After buying the bonds, the owner of the FED can either:
1. Keep the bonds, and collect the interest the US Government now OWES them.
2. Sell the bonds to the US Tax Payers or foreigners.
In either case, the FED owners have profitted $99.97 for every 3 cents it invested to
print the money. Remember, the FED is a PRIVATELY OWNED corporation, just like the Federal
Express. The profit of the FED goes to the FED owners.
The US Government now owes the FED owners the interest on those bonds. Remember that the
FED owners DO NOT EARN the bonds. They simply PRINT the money to buy the bonds. In other
words, they created money out of thin air, and exchange it for the interest bearing bonds.
In order to pay for the bonds' interest, the US Government taxes the US population.
When a US Citizen holding US Government bonds receives his/her return of investment on the
bonds, essentially the money he/she receives is the tax money he/she is paying to the
When the OWNERS of the FED receives the interest on the BONDS they're holding, they are
receiving that money for FREE (save the initial 3cent/$100 investment to print the money)!
Not only that, the FED owners receive the money TAX FREE.
Under the LAW, the FED is REQUIRED to RETURN its PROFIT back to the US Treasury. However,
NEITHER the Congress NOR the IRS have the POWER to AUDIT the FED. The FED has used this
obvious loophole to profit via 'creative accounting'.
Consider this: every year, the FED profits by hundreds of billions of dollars by buying US
Government Bonds. Yet it only returns ~$20 billion to the US Treasury. The rest of the
profit has been spent as "Operational Expenses".
The FED expects us to believe that the FED operational expenses amounts to $100's billion
The truth is, those profits were spent as "DIVIDENDS TO SHAREHOLDERS"!!!!
Year after year, the FED owners bleed the US Tax Payer dry by hundreds of billions of
dollars. Keep this going, and the US will go bankrupt in a few more years. Small wonder
why the National Debt is increasing at its current rate.
THE FED SHOULD BE ABOLISHED
1. The US Congress has the option to buy back the FED at $450 millions (per Congressional
When the Congress does this, it will own back the billions of US Government Bonds held by
The US Government will actually PROFIT by buying back the FED! Also, the US government no
longer has to pay interests to the FED owners on those bonds.
2. Through their ownerships in the FED, FOREIGN POWERS CAN and WILL influence the US
economy. By controlling our interest rates and money supply, they can actually create
economic disaster in the US, should the US disagree with them.
3. Although the FED directors must be confirmed by the Senate, the awesome lobbying power
of the FED owners makes this process meaningless. The owners of the FED can and will put
whoever they wish in the position.
4. Abolishing the FED will lead to lower inflation. At this moment, the FED prints as much
money as needed to buy the US Government Bonds. Since the FED prints this MONEY out of
THIN AIR, this leads to an INCREASE of MONEY SUPPLY, WITHOUT increase in GOODS/SERVICES.
This, as all of us know it, leads to INFLAFION.
If the general public buy those bonds with money that they EARNED by providing
GOODS/SERVICES, the money supply level is contant in relation to the goods/services level.
Thus, there is no inflationary pressure from selling these bonds.
5. Abolishing the FED will reduce the national debt level. By buying back the FED at $450
millions, the US Government will buy back the billions of dollars of bonds held by the
FED. Thus, the net effect is a reduction in national debt. After buying back the FED, the
US Government does not have to pay interest on those bonds it buys back, further reducing
the national debt.
6. Abolishing the FED will lead to eventual balance budget. Today, even if the US Economy
only grows by a meager 2%/yr, the US Government should be able to put 2% of US-GDP dollars
into circulation WITHOUT INFLATION.
Consider, if the goods/services grow by 2% and the money supply grows by 2%, the ratio of
goods/services vs. money supply remains constant. Thus, no inflation is created.
The government can use this extra money supply to fund its project without raising taxes.
As long as the government does not print money more than the goods and services available
in the US, there will be no inflationary pressures.
This had in fact been done with Executive Order 11110 of President Kennedy. Kennedy
ordered the Treasury Dept. to print a US GOVERNMENT NOTES (vs. FEDERAL RESERVE NOTES). In
effect, Kennedy bypassed the FED by making the Treasury Department printed REAL US MONEY,
instead of selling bonds to the FED for almost free.
The sad fact is, the US Government does not do this anymore. Instead, the US Government
sell bonds to the FED, which buys those bonds using money they don't earn. Thus, the US
Government must now pay interest on those money that it "borrows" from the FED.
7. By point (6) above, the US Government can actually reduce taxes on everybody since it
has more interest free money to spent in the amount equal to the growth of the US GDP.
KEEP IN MIND,
THIS MONEY WILL NOT CAUSE INFLATION, since the money is printed along with the growth of
the goods and services.
you can do to save the United States of America
The FED should either be AUDITTED every year, or be abolished. I have done my part
providing this information. It is up to you to decide the future of the US economy. Please
do the followings:
1. DO YOUR OWN RESEARCH!!!!
If everything that I wrote here sounds too far fetched to be true, I challenge everyone of
you to do your own research, and see for yourself.
- Encyclopaedia Britannica.
- Congressional Record
- "The Federal Reserve Bank" by H.S. Kenan
- "Repeal the Federal Reserve Bank" by Rev. Casimir Frank Gierut
- "The Secrets of the Federal Reserve" by Mullins
when you are sure about the facts,
2. Call your Congressman and tell him to support the legislation to AUDIT the FED.
3. Call your representatives and ask them to support legislation introduced by Congressman
Henry Gonzales to repeal the Federal Reserve Act of 1913.
4. Push for your home states to introduce and pass a legislation to end the FED scam. The
following states have already done so:
Arizona, Washington, Arkansas, Idaho, Oregon, Indiana, and Texas.
Even if you live in these states, contact your representatives and tell them to support
the legislation. THEY WILL LISTEN if you care to TELL THEM!!!
5. Ask your STATE and COUNTY government to abolish the FED. Since the FED is
CONSTITUTIONALLY ILLEGAL, it MUST be abolished. Ask your state/county governments for the
If the US Congress refuses to abolish the FED, your STATE/COUNTY governments can do it.
6. Collect signature on petitions calling for the end of the FED.
7. Tell friends and family about this fraud, and ask them for supports. Secrecy is the
FED's main strength. Since the media has been quiet, no one even notice this FRAUD that
goes on for decades.
Now it is up to the tax payer to be informed. Inform everyone you know about this, and be
8. Contact "America Betrayed",
Center for Action,
652 N. Glenview,
Nesa, AZ 85213
9. Contact "National Committee
to Repeal the Federal Reserve Act",
P.O. Box 1205, Middleburg, IL60599
10. This article maybe reproduced and distributed freely WITHOUT changes.