Help - question about Federal Reserve and banking system
Submitted by Liberty4All on Tue, 02/05/2008 - 17:24
I am looking for information on how banks operated before the federal reserve took over in 1913. Also, how did the govt. determine how much new money they would print? I realize the gold standard was in place. I am looking for the loan process - it is amazing how fraudulent the Fed is when you read about how they work. Links would be great!
visit here to see the feds own documentation on the process http://landru.myhome.net/monques/mmm2.html#MODERN
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Central Banking History
here:
http://video.google.com/videoplay?docid=-515319560256183936
Matt Harrington, Grants Pass, OR
pre fed res info
Check out The Coming Battle. By. M. W. WALBERT
Then read The Creature from Jekyll Island by G. Edward Griffin
Of course, Murray Rothbard is superb see http://www.lewrockwell.com/rothbard/rothbard-lib.html
There's more, but the above is quote a bit of reading.
Denny
Molon Labe
Molon Labe
Fed Controls in Three Ways
The federal reserve (which is neither) controls the money supply via three vehicles. Interest rates it charges to banks, reserve requirements (fractional reserves) and Federal Open Market Operations (buying fresh printed us treasurys in exchange for printed money or "monetizing the debt" --charging the interest it charges to banks and, and, the note it receives on the tbill from taxpayers---double interest). Monetizing the debt was originally started under the JFK administration. Johnson, nixon and ford didn't abuse it as bad as the current pres, but did use it as a vehicle to fund vietnam.
Well under bussh administration, they decided to end the published m3 report which shows the 12month period of augmented money supply (like a one year version of inflation). Moneterists believe the growth rate should never exceed 2-3%. Austrians say ZERO percent. Keysian says the sky is the limit (practically). So m3 is probably at least 24%.
That is what RON PAUL is talking about..visit: mackinacDOTorg...Larry Reed is an expert on this subject. Donate if you can
The real question is
Who receives the interest on the printed money? Not the U.S Treasury! The bankers who print the paper collect the interest! Do you ever notice how financial institutions collect interest on Sundays and Holidays but you can not make payments on these same days.
No No NO
The real question is why is there interest????
Because the money is created as debt. They print, or inflate a bank account, with a million bucks, by touching a button, and we the people are magically a million bucks in debt. Just like that. And the debt is to a handful of private bankers who just pressed a button.
They then set the interest rate on that magic debt ... The debt can never be paid--because it has to be paid in the same money that is created as debt!--but our government takes our money and services the interest on the debt. Get the scam?
The whole thing is sleight of hand that amounts to money being taken from you and transferred to the federal reserve bankers. Which amounts to you being forced to take money away from your family to pay these criminals with you having no say in the matter. Which amounts to slavery.
I am going to use your explanation
It is the simplest way to show how bad this system is. It is a bad joke and a mockery of honest workers. The monitary policy of this country could be the biggest issue this country has. THE FED OWNS the USA. Read the above post and think about it. The Fed was put in place in 1913
Read the Constitution
It tells you. The congress is supposed to set the value of the dollar as prescribed by the constitution.
To be precise...
The constitution authorizes the federal government "to coin money, and regulate the value thereof", that is, to determine the weight of standard coinage. It doesn't establish a federal monopoly on coinage, and it prohibits the states from issuing paper money.
-jcr
"The problem with trying to child-proof the world, is that it makes people neglect the far more important task of world-proofing the child." -- Hugh Daniel
Look up colonial scrip
This was probably the most honest paper money system in history. They regulated the amount, scientifically, according to the population. So there was always money handy for exchange of goods and services, but never extra money printed haphazardly--which would have caused it to lose its value.
And it was provided to the people virtually free--not created as debt (why would it be? It was only paper--like the modern dollar).
And it always bought the same amount of gold because the amount in circulation was carefully regulated.
An honest paper money system is extremely simple. It's all about quantity. I believe Lincoln did something similar with the original greenbacks.
???????
Lincoln's greenbacks also caused massive inflation. There has virtually never been a purely fiat money that didn't self-destruct in an inflationary crack-up.
great responses- Thank You!
I should have checked mises before asking. It is great knowing that I can ask an intelligent question that maybe 2% of this country knows and that 2% is here supporting Ron Paul. It is great to support a candidate that knows as well. I have learned a lot from RP and his supporters.
Murray Rothbard
Murray Rothbard's "What has government done to our money?, The case for 100% gold." is a concise and educating read.
ussatoday.blogspot.com
ussatoday.blogspot.com
fully backed
the government issued gold certificates fully backed by gold. since one could turn in the certificates for gold the government could not print any more certificates than they had gold. the money supply increased with mining. With bimetaalism silver and silver certificates were added as well. Loans were done by private banks primarily. Two Nobel prize winning economists including Milton Friedman have called for the abolishment of the Federal Reserve. The Wharton Schhol of Business just recently publuished a study showing the the period from the end of the civil war until 1913 was the most stable ecoomically in U.S. history in spite of the panic of 1893 and 1907. If course the 1907 panic was engineered by the Morgan ann Rockefeller interst to take over a copper company. Anyway, we never had period of staglation like we had in the seventies nor severe economic depression like we had in the thirties when there was no Federal Reserve and money held its value so savings were actauly safe and could then be utilized for investment. No one saves in this country because the money is constantly being devalued. No money for savings so no money for investment. Our manufacturing industry is dead or dying. Eighty-three percent of the manufacturing still left in this country is directly related to the military.We used to be a manufacturing powerhouse. General Motors cannot compete and now is offering to buy out all of their employees who will take the deal so they can hire new employees at half the wages that they are currently paying. Since 1980 the average worker in this country is being paid seventeen percent less, after adjustment for inflation, per hour. The wealthy and the bankers who get first crack and the newly printed or digitally created money have been doing well but everyone else has been losing.
Ron Paul Library - all his writings
http://www.ronpaullibrary.org/document.php?id=677
If this does not answer your question (Ron Paul's own words) just search federal reserve in www.ronpaullibrary.org and you will see him many writings on the subject. No one better that Dr. Paul for an education to the truth!
OR
watch this video from the von mises institue as a start - http://www.youtube.com/watch?v=iYZM58dulPE
you should
read some books by murray rothbard. he's the expert on the subject, i'd say.
any takers
I know someone out there knows how banks are supposed to work
Fractional reserve!
I believe the banks operated freely on a fractional-reserve basis, and subsequently kept failing due to bank runs and such. When they create artificial credit, that's what happens... boom...BUST!
Historically the central bank is created at the behest of the banks. They are attractive to politicians because the central bank can fund their wild military adventures and personal favors.
This sort of collusion violates traditional legal principles, which state a 100% reserve is the only moral solution.
Anyone else?... that's my best take on it