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DP Essay contest on the Federal Reserve.

As a follow up to a discussion yesterday about reaching out and educating the Tea Parties, all DPers are invited to participate in a One-Page Essay contest. This will start off with the first topic being the Federal Reserve. Since it is intended to reach those still unaware of the beast, the essay will need to be an introductory overview that provides the most complete description within the one page limit.

After one week of entries, the essay judged to be the most appropriate will be announced each week on Sunday afternoons. The winning entry will be used in both hard copy and electronic format to be dispersed far and wide. The more entries we get, the better, so your participation is greatly needed and appreciated.

The Federal Reserve
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I Say keep the constitution

I Say keep the constitution out of it. When someone says the FED is unconstitutional, one starts to see legalese and interpretations of different view points etc, etc.

It may be unconstitutional but more overly it is immoral and simply put a FRAUD!

The video "Money as Debt" had a good cartoon animation of a banker of olden days holding peoples gold for security. (Security as in to keep it from being stolen... the real reason for banks to exists).
It then became custom for people to simply accept the Banks Note for payment. Good as gold. But then, seeing that no one was actually removing their gold from the banks store, the banker figured out he could simply write Bank notes against money that wasn't there. Do you understand that point? Writing Notes for money not there. AKA Counterfeiting.

Eventually he wrote so many notes that people started to notice the value of their money drop and started to remove their Gold from the bank. This spreads into a Run on the Bank. And lo and behold.. there was not enough gold in the vault.
Through some contrived logic and fear mongering of collapse... people were convinced to maintain this charade.


The FED/Charade needs to be ended.


Very good LOL

"So this is how liberty dies... with thunderous applause."

* * * * * * * NEW R3VOLUTION HIP HOP TRACKS!! * * * * * * *

Hey there MoRtiS NoCTu...

I tweaked this a little and changed the ending. Think you can use it?

We need to talk about the Federal Reserve Bank,
it's unconstitutional, and you can take that to the bank!

The Federal Reserve is a national monopoly,
under the sole control of the elite powers that be.

Because the FED has become a large corporation,
it controls all financial matters across the nation.

And the FED has taken the right of making our laws
away from states, giving themselves endless power.

The Federal Reserve Bank can even rule the whole world
by giving the right of land ownership to foreigners.

They have been giving grants of land to certain families,
to keep it only in their hands for many centuries.

Our greatest of freedoms, the right of land ownership,
is being squandered by the elite for their own purposes.

It is each and every citizen's responsibility
to keep their liberties - like the right to own property.

If We, the people, allow the FED to go on this way,
freedom, itself, could become a thing of yesterday!

Audit the FED or End the FED should be the battle cry
of every citizen in the nation - Now it's Do or Die!

"Stand up for what you believe in. Even if you stand alone."
~ Sophie Magdalena Scholl
"Let it not be said that we did nothing."
~ Ron Paul
"You must be the change you want to see in the world."
~ Mahatma Gandhi


Thanks for lyrical ammo.

I should be able to use pieces of it for sure.

I can't make any promises for when you will see some lines implemented, just 'cuz I've got so many incomplete projects that i'm already working on, and it takes a while for me to get from the start of a song to a finished piece, but I will keep you informed, and of course give you credit for any lyrics of yours that I do use!

Thanks again!

"So this is how liberty dies... with thunderous applause."

* * * * * * * NEW R3VOLUTION HIP HOP TRACKS!! * * * * * * *

Thank you!

Use whatever you can. I need no credit - it's for a higher purpose, after all! My gift to the freedom movement!

"Stand up for what you believe in. Even if you stand alone."
~ Sophie Magdalena Scholl
"Let it not be said that we did nothing."
~ Ron Paul
"You must be the change you want to see in the world."
~ Mahatma Gandhi

I agree that it's a complicated topic.

So, I think it's best to give a very simple concept, and let them chew on it, and then they'll look for more.

I would start out with:
According to the Constitution, which is a list of limited powers allowed to be performed by the gov't on behalf of the people, Congress is empowered to "coin money and regulate the value thereof".
They were NEVER authorized or empowered to delegate that power to any other organization. They had NO authority to create the FED.

Anything beyond that is details.
Yes, they are very important details, but the basis for the argument must have a foundation to build upon.
There is no authorization for Congress to delegate their power to another body. Everything else builds from that.

And even if they never get past that one point, they KNOW that the Fed is not lawfully empowered to do what they are doing. That's enough to take a position against it, all by itself.

fireant's picture

Why the Fed?

Seriously, why select such a complicated issue to attempt an "awakening to the beast"?
I'm not saying the Fed shouldn't be ended. It's an appropriate goal, but it is so far removed from people's radar, and so complicated, which makes it easy to be demagogued, that I can only imagine someone on the verge of foreclosure and out of work looking at you and saying what does the Fed have to do with feeding my family? Now, I know there is a good answer to that, but we're in a zipalong sound-bite world, and while you are trying to educate about the Fed, dozens more current event opportunities will have slipped by.
The Fed is just too cumbersome from a marketing point of view.
If we are going to be effective, we have to be agile and active in the now, quick to respond on many issues. Though we know the Fed is one of the main tools used against our libery, it is by no means the only one.
If we are to utilize "essay time" wisely, it should be spent sharing responses to the many objections we likely hear to our message of liberty, especially as it pertains to current events. In other words, we know the MSM controls agenda, so use that to our advantage. As soon as a "mosque issue" pops up, be prepared to quickly expose the lie.
The circus of distractions will only get worse, and we should be prepared to deal with them. Keep it in the now. The Fed is so far removed, and once you do start making some sense to someone, the questions remain. How will you abolish the Fed? With what will you replace it? So you are back to getting a whole bunch of the right people in office. An essay on how to do that may serve our purposes better.
I hope I'm making sense. Using the Fed as a primary vehicle to wake people up just seems cumbersome to me. People are "waking up" more and more as unemployment worsens anyway. When retirement systems go bust and the bond bubble busts, more will wake up. Trying to make the distinction between FedGuv and Fed is near irrelevant. What counts is "they" can print money and set interest rates, and we have to stop feeding them. Our focus should be on slashing taxes and the size of the FG.

Undo what Wilson did

Its actually "so simple that the mind is repelled".

To use J.K. Galbraith's description.

What's so "complicated" about writing an IOU?

fireant's picture

Simple to you and I because we have done the study.

Not so simple to sell. Look at all the varying essays below; long and complex, with no agreement on who even owns the Fed. You nailed the key, which is the IOU nature of our money, mattering not if it is the Fed or the FedGuv doing it. And as I stated, once you throw in "private corporation", what power do I have to control a private corp? It simply ends back up in Congress. The Fed just adds unecessary confusion to the issue of sound money. I'm not saying we shouldn't educate about the Fed. Using it as a "wake-up tool" however, is the wrong approach in my opinion. What is needed is to starve the beast, and taxes are much more cogent than the obscure "Fed".

Undo what Wilson did

The "wake up" issue is an individual thing.

Some people are woken up by excessive taxation and regulation.

Others don't see taxes and regulation as a problem - because they haven't joined the dots yet.

Why the Fed, because it's the central and fundemental

problem. Of course we can do a different topic every week. What would you suggest for week two?

fireant's picture

I was careful to offer two suggestions in my critique^

1. Discuss "overcoming objections". List the most common we hear from target audiences. There are many clever posters on this site who can come up with effective responses. That's ammo we all can benefit from.
2.Discuss the need to slash taxes and spending. While we try to educate the public about the Fed, the beast is still being fed (pun unavoidable).

Undo what Wilson did

Not an essay but a haiku....

Paper money...
It grows on trees..
End the FED.

Sometimes rhymes are fun to remember!

We need to talk about the Federal Reserve Bank,
it's unconstitutional, and you can take that to the bank!

The Federal Reserve is a national monopoly,
under the sole control of the elite powers that be.

Because the FED has become a large corporation,
it controls all financial matters
across the nation.

And the FED has taken the right of making our laws
away from the states, thus giving themselves endless power.

The Federal Reserve Bank can even rule the whole world
by giving the right of land ownership to foreigners.

They have been giving grants of land to certain families,
to keep it only in their hands for many centuries.

Our greatest of freedoms, the right of land ownership,
is being squandered by the elite for their own purposes.

If we the people allow them to go on in this fashion,
freedom itself could become quite out of fashion!

"Stand up for what you believe in. Even if you stand alone."
~ Sophie Magdalena Scholl
"Let it not be said that we did nothing."
~ Ron Paul
"You must be the change you want to see in the world."
~ Mahatma Gandhi

I like this one!

That one has quite the catchy tune......

Send it across all the Tea Party rallies and independent news blogs. See who bites. This song should go viral. Even if the "elite" co-opt it, we can stay in front of the message behind this powerful song easily.

Great idea!

Thanks Sam! Tweak it & send it out - use it for the higher cause of freedom from the FED!


"Stand up for what you believe in. Even if you stand alone."
~ Sophie Magdalena Scholl
"Let it not be said that we did nothing."
~ Ron Paul
"You must be the change you want to see in the world."
~ Mahatma Gandhi

Here is my submission, please critique and offer any suggestions

It is 12 point Times font and fits on on one page. The formatting was lost when pasted here. (I reposted to get closer to the top for review).

The Federal Reserve
One Page Patriot

The Federal Reserve is a cruel hoax and fraud that has been robbing the American people since 1913. Passed through bribery and stealth, it was deceptively named to make people think is was a government agency that looks after the people’s money and their best interest. However directly to the contrary, it is a private company, owned by large commercial banks, that operates for the sole benefit and greed of its stockholders. Here are a few of the most famous quotes that describe its true nature.

"It is well that the people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before morning." - Henry Ford

"We have, in this country, one of the most corrupt institutions the world has ever known. I refer to the Federal Reserve Board. This evil institution has impoverished the people of the United States and has practically bankrupted our government. It has done this through the corrupt practices of the moneyed vultures who control it." - Congressman Louis T. McFadden (Rep.Pa 1932)

"Most Americans have no real understanding of the operation of the international money lenders. The accounts of the Federal Reserve System have never been audited. It operates outside the control of Congress and manipulates the credit of the United States"- Sen. Barry Goldwater (Rep. AR)

The Printing Press - While citizens are required to work and save to accumulate their wealth, the Federal Reserve can create money at will, by simply printing dollars or entering numbers on a computer. This allows their member retail banks to carry out the fraudulent fractional reserve system. While most people think their local banker is loaning them their personal money, the fact is, money borrowed from a retail bank is imaginary money that is created out of thin air, the moment they sign the note.

Interest Rates - Instead of allowing the market forces of supply and demand to set interest rates, the Federal Reserve currently does that to manipulate the economy to their benefit. Thus by controlling the money supply, they have been manufacturing recessions and depressions since 1913. This includes the great depression which allowed them to manipulate the failure of many smaller banks, which allowed the larger banks to buy them up at rock bottom prices.

Gold - The constitution stipulates that “no state shall coin money except gold and silver” Yet in 1933, Rosevelt issued executive order 6102 that required all U.S. citizens to deliver their gold to the Federal Reserve for the price of $20.67. Today Gold is worth over $1200 per ounce while the value of the dollar has lost 95% of its value since 1913. Furthermore, the gold at Fort Knox has never been audited and it’s where abouts are unknown. Wonder where it is!

War and Debt - Loaning paper money to governments is one of the most secure and profitable ways the banks make money. Thus they love for the government to borrow and spend money. One of the most lucrative expenditures is War. Not only do the banks like to own this debt, but many of the stockholders of the banks also own stock in the companies that profit from making war supplies. Ever wonder why we have so many wars while the people can’t understand their purpose?

Who are these people? - Most are foreigners who have bribed their way into our government. In fact, the War of 1812 was fought because the bankers were trying to force Congress into renewing their contract which ended in 1811. So the next time you hear the national anthem which was written in 1812, think about the people behind the Federal Reserve. Their motivations are explained by the following quote:

“The money powers prey upon the nation in times of peace and conspire against it in times of adversity. It is more despotic than a monarchy, more insolent than autocracy, and more selfish than beaurcracy. It denounces as public enemies all who question its methods or throw light upon its crimes. I have two great enemies, the Southern Army in front of me and the bankers in the rear. Of the two, the one at my rear is my greatest foe.” - Abraham Lincoln

Republicae's picture

"The Federal Reserve is a

"The Federal Reserve is a cruel hoax and fraud that has been robbing the American people since 1913. Passed through bribery and stealth, it was deceptively named to make people think is a government agency that looks after the people’s money and their best interest. However directly to the contrary, it is a private company, owned by large commercial banks, that operates for the sole benefit and greed of its stockholders. Here are a few of the most famous quotes that describe its true nature."

Here is my criticism Waldo and it will be unpopular, no doubt:

The Federal Reserve is not a private company, nor is it owned by large commercial banks, nor does it operate for the sole benefit and greed of its stockholders, at least not the ones commonly thought of here and on the web.

Would you not say that the "owner" of a company or agency would get the most money out of the earnings of that company or agency? That is the common definition of ownership, the owner benefits from the bulk of the proceeds. The truth is that the U.S. Government receives the bulk of the earnings generated by the Federal Reserve Banking Systems, the minority ownership of the large commercial banks get a an extremely small return on their stake, in fact, less than 6% since out of the 6% mandated by the Federal Reserve Act is a gross return, all overhead must be paid out of that 6% before the dividends are paid to the banks that hold that very minor stake in the Federal Reserve. While it makes a good myth on the Internet, the facts are verifiable when it comes to the actual money paid to the majority stakeholder, i.e. the U.S. Government and the minor stakeholders, i.e. the various commercial banks.

To be honest with you, I find that just as offensive as if the Federal Reserve was solely owned by private commercial banks, if not more so. For too long many people have almost given the government a position of innocence when it comes to the Federal Reserve, but the truth is that the Federal Reserve acts on behalf of this government, for its benefit and for its ever-expanding power. The true stakeholder in the Federal Reserve is indeed the U.S. Government for without the FED there would a very different type of government in this country, one much more contained and manageable, one that was much more concerned by the Will of the People. The Federal Reserve and the Fiat Monetary Systems make it all possible.

Now, that being said, we then must consider the part private member banks play in the whole scheme of things as they revolve around the government created, government chartered and yes, government controlled Federal Reserve System and yes, the government uses bankers or quasi-banker agents to maintain the system, they are in fact nothing more than government bureaucrats. The FED, being the lapdog of the government, provides the government with all the instruments of banking without the common restrictions of banking, but it also includes in this system a vital corporate strata composed of the member banks, which insert themselves into the fiat monetary scheme through fractional reserve banking fraud. This monopoly power belongs to the government, but is administered through the Federal Reserve System. Even Federal Reserve Notes signify the ownership and authority of that ownership, which is the Seal of the U.S. Treasury and the Secretary of the Treasury's signature. The fact is that the U.S. Government is the actual beneficiary of the creation, the operations and, in particular, the secrecy of the Federal Reserve. Without the Federal Reserve and the fiat currency forced upon this country by the government legal tender laws, this government could not function because it would no way for it to tax the People, the Federal Reserve System allows the government to bypass the heavy burden of taxation that would be necessary to sustain the government at such a massive scale. The Federal Reserve and the fiat monetary system prevent revolt, among other things.

So, enter the privately owned member banks, there was a transition, which took about 67 years to move all private banks from a system outside the Federal Government authority to inside the Federal Government’s authority. This created a corporatist system of banking, integrating those banks, particularly State banks, into an umbrella system. The invitation to those private banks was by coercion rather than voluntary consent. Essentially, the government invited the private banks to join the system, become chartered under the system or face undue hardship and regulation to remain outside the system. By 1980, and the introduction of the Monetary Control Act, all U.S. Deposit Institutions were brought under the authority of the Governments Federal Reserve Banking System.

Because of the special authority granted by this government to its agency called the Federal Reserve, along with its evil twin sister the IRS, there is an absolute immense amount of wealth directed or redirected into the accounts of banks, all under the guise of managing the economy, controlling interest rates. The ability to control the money supply is one of the most powerful of forces utilized by government, it provides for the redistribution of wealth from a population unaware of the mechanics of the system, hidden behind the face value of its fiat currency, wealth from the productive members of society, working hard for their wages are oblivious that it is not the face value, but the purchase value of a currency that is meaningful. Thus, through inflationary depreciation the People have been suckered into thinking that there are making more money per hour just because they have more dollars showing on their weekly paychecks.

The banks, with the support of the non-productive monopoly created by government, siphon off the cream of wealth from the People of the country. It utterly denies the potential of wealth building to the majority of the People by funneling production through the fiat monetary system and the Socially Owned [government] Banking known as the Federal Reserve Banking System. It is a form of corporatism that is rarely considered because we have grown accustom to the wide-spread idea, and a convenient one it is, that the Federal Reserve is owned by the big bad private banking corporations, but the truth is much more horrifying because it is our own U.S. Government that is actually perpetrating this fraud upon us. That fact does not deny the capability of the large banking corporations; they are, in fact, partners in this criminal act. It is all a license to steal, to steal the fruit of our labors and the possibility of a prosperous future for our own posterity, as well as the welfare of this country as a whole.

I realize this is not the commonly held opinion and to be honest at one time I held the same opinion, but upon further research I reached a conclusion that is far more disturbing: our government is intent on subjecting us through a system of fiat peonage, using a system that began during the Lincoln Administration, but came to fruition in 1913. We have been systematically nailed to the wall and stretched out to dry by our own government and its agents of corruption.


"We are not a nation, but a union, a confederacy of equal and sovereign States" John C. Calhoun


The Federal Reserve is nominally "private" while the Bank of England is nominally "public", but they both perform the same functions through the same mechanisms.

Central banks exist for the benefit of their principal clients: government and the commercial banks.

I Agree With Near Half of What You Write This Time

Yet, you write so well, that I do not wish to pick your prose apart. What you wrote will stand on its own merit, well enough. I do support your sentiments in your essay.

Though we responded to the same "Ralph Waldo" essay, one may be left wondering what to believe.

So much of history is twisted by the reporter. I should know. I do a lot of the twisting.

In polite company, I would encourage folks to use your essay.

My essay on this forum, is a poem. I hope it is entertaining in the telling.

"Twas the Bank Night Before Christmas Eve, 1913."

Regards & Best Wishes for your fine writing. Sincerely,

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul

Define "government"

Traditionally government was supposed to be the people, as well as all its elected representatives.

What does the "government" meet the definition of in this case?

If you answer private banking corporations, then you are pretty much on the mark. Our US Federal Government is made up of privately owned central banks.

So really when you try to get the US Federal Reserve under control again, you are asking the central banking corporations to do this task.

And all too often, the way the government does things is the wrong way to do things. The Fox isn't going to bite the hen-house. So instead, you watch an irate Congress blame some outside bankers in various countries for the financial crisis.

When the very reality is that the bankers inside our government is who caused this mess, NOT the bankers overseas.

Our official US Government bankers in JP Morgan, Bank of America, Lehmen Brothers and Goldman Sachs caused this crisis deliberately.

We basically asked them to "fix" it all ...... by blaming the OUTSIDE banks such as Banco Sao Paulo, Deutsche Bank, Groening Bank & their other toadies. In this way the Fed screwed you!

Phasing out the Federal Reserve will basically end the U.S Government, replacing it with only a limited constitutional body with elected powers which actually answer to their constituents.

IE: A mini house of Representatives....a small one.

According to Eustace Mullins and other sources,

the owners of the FED are the member banks and the stockholders of those banks. They also, through the fractional reserve system, are the greatest beneficiaries.

The rest of what you have stated is probably true, the problem is trying to explain the essence of the problem (The Fed), in one page.

I have another post set up for the submission of entries. Maybe you can condense your perspective, word it more succinctly and help bring forth an effective essay.

Thanks for your input.

Republicae's picture

All one need do Waldo is look

All one need do Waldo is look at the money trail, it is easy to research and the money trail ends in the U.S. Treasury, not in any of the commercial banks. Even the Federal Reserve Act gives the amount of dividends paid to the minor stakeholders. You can find the amount of earnings and distributions in many Congressional Reports, in the GAO and even in other independent sources which track government monies. You will not find any source that will show the mass of earnings going to any other recipient other than the U.S. Treasury. To be sure, the member banks do greatly benefit from the arrangement, but not directly from the Federal Reserve Banking System, the direct beneficiary is the U.S. Government.

As far as Eustace Mullins is concerned, I have a number of problems with his "factual" information, as well as his political background. While I understand his popularity, as well as others who promote the now commonly held opinion about the private ownership of the Federal Reserve, I prefer a far more substantial view based upon facts rather than popularity. Let's face it, everyone loves a conspiracy, but we must concern ourselves with factual information about such conspiracies otherwise, as we see even here on the DP, people will divert themselves to disregard facts, even those staring them in the fact, for less accurate information and sometimes for misleading information.

If you can show me the money trail leading from the Federal Reserve earnings to those private banks I will be more than happy to research the matter, but thus far I have yet to find a direct infusion of the majority of earnings from the FED to those minority stakeholders and I have done a heap of research on the subject. Regardless, the Federal Reserve System is an enormous fraudulent system, created, promoted and primarily benefiting the Federal Government and it is managed, to a large degree, by private banking agents, but they are all on the payroll of the Government. The various minority owners of the Federal Reserve are just that minority owners, vital for its fraudulent functions, but still minorities in the actual ownership and control of the system...the real culprit is our own government, which, by any man's standard should cause a huge amount of indignation.


"We are not a nation, but a union, a confederacy of equal and sovereign States" John C. Calhoun

According to Eustace Mullins and GE Griffin, the big

money is made through the "fractional reserve lending" by the commercial banks, which is made possible by the Federal Reserve system. They along with RP have written books explaining this "left hand/right hand" paradigm.

In other words, the Fed's ability to print money out of thin air makes it possible for the retail bankers to loan out "imaginary money" and get paid back in "real money" (that was produced by labor or human effort). So when you consider "the FR system as a whole", the member banks and their stock holders are indeed the greatest beneficiaries - by far! These are the families of the men who started the FED - (the Rothchilds, Schiffs, Warburgs, Rockefellers, etc).

Of course the long term problem comes in, when over time, this massive influx of fraudelant money winds up in the hands of such a few members of society thus affording them the wealth and power to control and manipulate politics, policy and events.

btw - 6% ain't bad when you consider the principle and what it took to produce it, how hard is it to type in a $1,000,000,000 dollars.

Republicae's picture

But all that you just said is

But all that you just said is quite different than your essay that you asked to be criticized is it not? What you have said in the above comment does not promote the idea, the myth that the Federal Reserve is owned by large commercial banks, in fact, what you are saying here is almost exactly what I said in my criticism of your essay.

In Section 7 of the Federal Reserve Act, subsection 1A states:

After all necessary expenses of a Federal reserve bank have been paid or provided for, the stockholders of the bank shall be entitled to receive an annual dividend of 6 percent on paid-in capital stock.
The entitlement to dividends under subparagraph (A) shall be cumulative.
That portion of net earnings of each Federal Reserve Bank which remains after dividend claims under subparagraph (1)(A) have been fully met shall be deposited in the surplus fund of the bank.

Section 7 (1)(B): The Federal reserve banks shall transfer from the surplus funds of such banks to the Board of Governors of the Federal Reserve System for transfer to the Secretary of the Treasury for deposit in the general fund of the Treasury.

Interesting enough, the law stipulates a small portion of Federal Reserve stock may be available for sale to the banking public, however, there is a catch in the law which states that NO ORGANIZATION may own more than $25,000 of such public stock in the Federal Reserve and none of those shares carry voting rights.

Additionally, it would appear that there have been several occasions where the Federal Reserve has gone against some of those which many claim to be major stockholders, if the Federal Reserve and its monetary policies were indeed under the control of such stockholders then why on earth would the FED take certain steps that would preclude or hinder the operations of some of those so-called major stockholders in favor of a political position of the government? The fact that the Federal Reserve has acted at times on political “instructions” rather than that which would be favorable to the large commercial banks, such is an indication of ownership, but not by the large commercial banking houses or the families which are the majority stockholders in such banking houses, but the true owner: The Federal Government. The convergence of benefits to both the government and the banks is easy money and easy credit, it boost the profits of the banks and transfers wealth and power to the government through inflationary depreciation of the fiat currency regime. It also makes for a much more palatable political atmosphere publicly since has, until recently, provided the consumer addiction with their monetary and credit fix.

In fact, the legal structure of the entire Federal Reserve System precludes private bankers from determining the monetary policy of the Federal Reserve, in other words it is impossible for such a determination to be made based on the structure of the decision-making process of the Federal Board of Governors. Now, given that fact, we cannot, based upon that structure and the fact that the Federal Reserve is owned by the Federal Government, preclude the fact that there is political policy influence by private banking, but it is not, to be best of my knowledge and research, direct influence, rather it is indirect through Congress.

Now, while it is true that the Federal Reserve makes a huge amount of profits annually, the bulk, between 94 and 97% of the net earnings of the FED are paid to the Treasury [a fact that is easily verifiable]. That leaves a very few percentages to be parceled out to the “shareholders” based on their “capital stock” which, by law, is extremely limited, but still a great deal of money by any measure. January, 2010 report of the Treasury states that the preliminary earnings of the FED was approximately $52.1 Billion Dollars, after the prescribed expenses were paid, the transfer to the U.S. Government via the Treasury was $46.1 Billion Dollars. Now the question is how much does it cost the FED to operate? Well, based on the reports I’ve read it appears that it cost the FED approximately $3.4 Billion to operate in 2009, but it also paid approximately $2.2 Billion Dollars in interest to depository institutions. Thus out of the $52.1 Billion Dollars only $6 Billion remains, out of that comes $5.6 Billion Dollars in operating cost which includes interest paid to depository institutions. After that is paid then the 6% dividend is paid to the member banks of the 12 Federal Reserve Districts. Contrary to the many theories that promote the idea that private member banks or large banking houses are making huge profits from owning stock and controlling the Federal Reserve, they are not. 6% dividends on the member bank stockholdings are, by any standard, modest in terms of a rate of return. All one need do is look at the net earnings of the FED in excess of the dividends to see that the actual owner makes the profit and that owner is our very own federal government.

Another thing that is important to consider regarding the supposed ownership of the Federal Reserve by large commercial banking houses and that is the member banks themselves. In order to gain a consensus, there would need to be control over the boards of a majority of member banks, each of whom have individual stockholders with voting rights of their own regarding the operation of each of those member banks. Each of the 12 Federal Reserve Districts probably contain thousands of member banks, to even gain control over a majority of them would be a mathematical miracle to say the least, especially since each of those member banks may have hundreds of thousands of private individual stockholders. Essentially, if it were true about the large commercial banks owning the Federal Reserve then they would have to hand-pick every CEO and board of the member banks and then be able to completely sway the private individual stockholders of each of those banks to back their position, whether that position was in the best interest of the private stockholders or not.

That would be an impossible task, just as impossible as the idea that the Federal Reserve can actually maintain, control or manage the economy with over 300 Million individual players in the market making trillions of moment by moment economic decisions effecting their own individual lives. Another fact that must be considered is that it appears whatever power or influence the member banks have on the Federal Reserve is very narrowly prescribed in the Federal Reserve Act. Perhaps some of the most informative documentation on the Federal Reserve is the actual debates in Congress on the subject during 1913 when considering the Federal Reserve Act, in fact those debates are extremely revealing if one would take the time to study them. Read the Congressional Record, 63rd Congress, 1st session, I, 513-514, 5992-96.

There are therefore, several disconcerting discrepancies within several of the sources you cite, such as those from Eustace Mullins. I am surprised however, that you did not mention Gary Kah who also wrote a similar book about the supposed ownership of the Federal Reserve by banking powers, of course you would quickly see the differences in opinion between the two authors on such ownership. Kah states that it are and have been an almost completely different lists of so-called owners, they both can’t be right…perhaps because they are, more likely, wrong. The discrepancy of course can’t be more obvious if one just look into the matter and that is that there has never been any public stock issued by the Federal Reserve.

As Rothbard stated so aptly in his small work entitled The Case Against The FED:

“By far the most secret and least accountable OPERATION OF THE FEDERAL GOVERNMENT is not, as one might expect, the CIA or some other super-secret intelligence agency…It is little known, however, that there is a FEDERAL AGENCY that tops the others in secrecy by a country mile”

Of course, he is speaking about the Federal Reserve as that ultra-secret agency, that federal government operation. Indeed, that is exactly what it is, an agency of the government.

Strangely enough, back in 1993 there was a Democratic Chairman of the House Banking Committee named Henry Gonzalez who introduced a bill to audit the Federal Reserve, stranger still the bill was co-sponsored by none other than Barney Frank, pretty shocking. The Gonzalez/Frank Bill would require full independent audits of the FED and would include complete Congressional Control over the FED’s budget. Of course, it didn’t get far because the cry of the Pro-FED politicians was that it must remain “independent of politics”.

Rothbard continues with the following:

"Independent of politics" has a nice, neat ring to it, and has been a staple of proposals for bureaucratic intervention and power ever since the Progressive Era. Sweeping the streets; control of seaports; regulation of industry; providing social security; these and many other functions of government are held to be "too important" to be subject to the vagaries of political whims. But it is one thing to say that private, or market, activities should be free of government control, and "independent of politics" in that sense. But THESE ARE GOVERTNMENT AGENCIES AND OPERATIONS we are talking about, and to say that government should be "independent of politics" conveys very different implications. For government, unlike private industry on the market, is not accountable either to stockholders or consumers. Government can only be accountable to the public and to its representatives in the legislature; and if government becomes "independent of politics" it can only mean that that sphere of government becomes an absolute self-perpetuating oligarchy, account- able to no one and never subject to the public's ability to change its personnel or to "throw the rascals out." If no person or group, whether stockholders or voters, can displace a ruling elite, then such an elite becomes more suitable for a dictatorship than for an allegedly democratic country.”

Rothbard continues with some interesting questions that are extremely pertinent to the subject of the relationship that was intentionally formed between the Government Agency known as the Federal Reserve and the banking industry. In the reaction to the Gonzalez/Frank Bill the New York Times stated in its October 12, 1993 edition: “The Fed is already working behind the scenes to organize battalions of bankers to howl about efforts to politicize the central bank". To that Rothbard responds:

“True enough. But why should these "battalions of bankers" be so eager and willing to mobilize in behalf of the Fed's absolute control of the monetary and banking system? Why should bankers be so ready to defend a federal agency, which controls and regulates them, and virtually determines the operations of the banking system? Shouldn't private banks want to have some sort of check, some curb, upon their lord and master? Why should a regulated and controlled industry be so much in love with the unchecked power of their own FEDERAL CONTROLLER?”

Things to consider, don’t you think? Now while the idea that private banks own the Federal Reserve is horrifying, and a convenient scapegoat that takes the real responsibility off the government to a degree, the fact that our own Federal Government owns it is even more horrifying because it means that this government has perpetrated one of the greatest criminal frauds on the People of this country for the last 97 years.

In my opinion, the truth about the Federal Reserve is worst than the popular myths surrounding it. The system that now oppresses the People of this country cannot hit the bone yard quick enough!


"We are not a nation, but a union, a confederacy of equal and sovereign States" John C. Calhoun

I agree with what you are saying except for your

first paragraph. My follow-up reply is congruent with the one page essay and the contention that the Federal Reserve operates for the benefit and greed of its owners.

Republicae's picture

....and its owner is the

....and its owner is the the entity that receives the bulk of the proceeds, i.e. the federal government! As I have said, the Federal Reserve is nothing more than the lapdog of the government and the monopoly charter it gives the Federal Reserve has allowed for a corporatist State where the minorities partners receive a massive benefit from that monopoly charter, i.e. the member banks. The next layer of beneficiaries range from the military industrial complex to the massive corporations and multinationals. It is nothing more than a system of mercantilism!


"We are not a nation, but a union, a confederacy of equal and sovereign States" John C. Calhoun

Money is Hard to Make... Monopoly Money Is Easy to Imagine!

Ralph Waldo and DailyPaul Editors,

Please consider replacing this monster sentence.

"While most people think their local banker is loaning them their personal money, the fact is, money borrowed from a retail bank is imaginary money that is created out of thin air, the moment they sign the note." Void

Rather than patching it up, try something new...

Money is Hard to Make. Monopoly Money Is Easy to Imagine!

"The Federal Reserve controls our dollar printing press. Dollars printed @ 4 cents per note, magically become green Monopoly-Bank-Money. Yet, dollar notes are really only imaginary National Debt receipts. Not money!"


Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul

Your idea is nice, but backwards.

Host a national essay contest. I will chip in $10 for the prize. Giving people information that they do not already agree with will have limited success, no matter how exquisitely you word your case. Make them dig, make them discover the truth, make the theme "What I learned about the Federal Reserve Writing This Essay" and Ron Paul supporters are disqualified.

The hypnotized person is just like Dorothy, no amount of truth before their glazed over eyes will have an effect. Send them on a quest to find truth on their own and they can awaken themselves. (But no one could click her heels together but Dorothy herself.)

Truth exists, and it deserves to be cherished.

Fantastic Idea. Offer Gold & Silver Coins! Offer DailyPaul Work!

Your idea has high merit. Consulted the history of Tom Sawyer (a boy that knew right from wrong), Thomas Jefferson (US Founding Father) and Cyrus the Great (Persian Emperor).

Make a Liberty Scholar Out of Thin Air!
Life doesn't really cost money at all. Even Tom Sawyer, as a kid figured it one out. See "Painting a fence." We could offer work on our our DailyPaul. Repaint the red banner. Offer scholarly Liberty editing service work to the winners. No Un-employment here at our DailyPaul. Everybody works.

Imagine: You win a DailyPaul contest! You win a lifetime supply of work on our DailPaul! Imagine being a liberty scholar editor on our world famous DailyPaul. Resume expansion, deluxe! But I digress.

Thomas Jefferson, Liberty Scholar, Writer, and Editor

"We hold these truths to be self evident: that all men are created equal; that they are endowed by their Creator with certain inalienable rights; that among these are life, liberty, and the pursuit of happiness”

Great writing indeed. Where did Thomas Jefferson find in himself those prose? Or did another scholar somewhere else?... Another era?...

Cyrus the Great, Persian Dictator and Liberty Scholar (all rolled into one Cyrus Cylinder).

Cyrus Cylinder, from Persia (later known as Iran)
Text, Pictures and Major "Human Rights" Documents

...... Cyrus, King of Kings, King of Persia, King of Babylon, King of Sumer and Akad, King of Elam and Anshan, King of ......., King of all nations of the four quarters, have dictated a new world order, for the man to be free, for the man to live as he pleases and be protected by The Law, all men to have rights, all men to have dignity, all men to freely choose their religion, respect to all's religion, respect to all's tradition, respect to all's property, respect to all's humanity......

Yes he was thinking of world domination with him as a dictator. Even used a phrase translated into, "New World Order." Never the less, he wrote words that inspired our Thomas Jefferson to write his. Our Founding Fathers were greatly influenced by the teachings of the Persians...

Cyrus Cylinder, from Persia (later known as Iran)

Major Human Rights Documents of Mankind

Persia (Cyrus), U.S.A., France
by Lawrence of Persia (LOP)


  1. Introduction
  2. Cyrus Cylinder
  3. Virginia Declaration of Rights
  4. U.S. Declaration of Independence
  5. U.S. Bill of Rights
  6. French Declaration of the Rights of Man and Citizen
  7. Thomas Paine's Observations on the Declaration of Rights
  8. A question for Iranian Muslims
  9. Suggested Exercises
  10. Conclusion


My purpose in compiling this article is to make the ideas and concepts expressed in the fundamental human rights documents of mankind easily accessible and useful. I did it especially for the young Iranians on whom will fall most of the burdens of ending the Islamist regime in their country and replacing it with something that better meets their aspirations.

More power to them.

Cyrus Cylinder

Cyrus the Great of Persia completed his conquest of the Chaldaean empire of Babylonia in 538 BC. He treated his new subjects with enlightened tolerance and respect. This is recorded in cuneiform script on a clay cylinder from that time that is known as the Cyrus Cylinder. The original Cylinder is housed at the British Museum. A replica has a place of honor at the United Nations Building in New York City.

" I am Cyrus, king of the world, great king, mighty king, king of Babylon, king of the land of Sumer and Akkad, king of the four quarters ..."

Sovereignty resided in the person of the king. Cyrus's subjects were very fortunate that he was such an enlightened and benevolent king. In many other times and places people were not so lucky.

"... whose rule Bel and Nabu cherish, whose kingship they desire for their hearts' pleasures."

Cyrus claimed to have the approval of the Babylonian gods Bel (also known as Marduk) and his son Nabu. He did not try and impose his Persian god(s) on the Babylonians.

"Marduk, the great God, caused the big-hearted inhabitants of Babylon to...me. I sought daily to worship him."

Cyrus, the recent conqueror of Babylonia, honored and worshipped Marduk who as city god of Babylon was king of the gods of Babylonia.

"I did not allow any to terrorize the land of Sumer and Akkad. I kept in view the needs of Babylon and all its sanctuaries to promote their well being. The citizens of Babylon... I lifted their unbecoming yoke. Their dilapidated dwellings I restored. I put an end to their misfortunes."

Cyrus did not allow his army to plunder and loot the newly conquered country. He promoted the welfare of his new Babylonian subjects and supported their religious temples (sanctuaries).

"From ... to the cities of Ashur and Susa, Agade, Eshnuna, the cities of Zamban, Meurnu, Der, as far as the region of the land of Gutium, the holy cities beyond the Tigris whose sanctuaries had been in ruins over a long period, the Gods whose abode is in the midst of them. I returned to the places and housed them in lasting abodes ... The Gods of Sumer and Akkad whom Nabonidus had, to the anger of the Lord of the Gods, brought into Babylon, I at the bidding of Marduk, the great Lord, made to dwell in peace in their habitations, delightful abodes."

During their conquests the Babylonians had destroyed the temples of people whom they defeated and had brought the idols (gods) to Babylon. Cyrus restored these ruined temples and returned the idols to them.

"I gathered together all their inhabitants and restored to them their dwellings."

The Babylonians had enslaved many conquered peoples. Cyrus freed them, sent them home and helped them to rebuild. In 537 BC he allowed more than 40,000 Jews to leave Babylon and return to Palestine.

Complete and accurate translation of text on the Cyrus Cylinder:

Major Human Rights Documents in History

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul