The Federal Reserve

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From the online video titled:

Money, Banking and the Federal Reserve
http://www.youtube.com/watch?v=iYZM58dulPE

This 42 minute video, produced in 1996, give a history of the Federal reserve and explains why it's not what it claims to be.   The Federal Reserve is not the financial problem solver.  It is the cause.  

What it actually does is transfer wealth and power from the people to the small group of super-wealthy people who own and control the Federal Reserve.   It does so underhandedly by inflating the money supply and thereby stealing the value of all assets held in the form of dollars or promises to  pay in dollars.    

The Federal Reserve a completely closed organization with no oversight and outside controls.   It's activities are conducted in secret and behind closed doors.

Who are the winners -- Who gains?   The government    Big banks   Government contractors   Anybody associated with the government.    

Who are the losers -- Who gets ripped-off?   Anybody and everybody who holds assets in the form of dollars or promises to  pay in dollars.    

The  Federal Deposit Insurance Corporation (FDIC)  actually has no money to back up the bank depositor's money.   In assets it has only one half of one percent in its reserve fund.   If there is run on the banks, it merely gives depositors, more promises to pay in the form of more fake money (fiat money).  

The alternative is a market controlled economy   

Money evolved out of the need to exchange goods and services.  As the exchange process evolved, the most functional commodity became used as money.   Gold and solver became the most commonly accepted mediums of exchange.    

Why gold and silver?  Because  they are commodities that have their own intrinsic value.   They are limited in supply.  They're durable.   They're easily divisible into small units.  They have a high value to weight ratio.   They're cannot be inflated --one cannot steal the value out of either gold or silver.   Unschooled  and naive individuals can be duped, but the savvy cannot be fooled by fake gold or fake silver. 

After the civil way, the American economy was under the gold standard for about twenty years until 1879.  The economy grew at a four percent annual growth rate --  a rate never seen before or since.   In 1879, the wealthy financial tycoons of that era influenced the government legislators to pass the Interstate Commerce Act.   This essentially, eliminated competition and began a ere of spiraling control by the wealthy.   

In 1896 two wealthy factions began fighting for control,   The financial industry and the oil industry.   This conflict ushered in the context in which, in 1913, both sides  influenced to government to create the Federal Reserve.   It was sold as a way to prevent bank failures.  

The Federal Reserve became the lender of last resort.   Instead of poorly managed banks failing, their loses were paid for by the taxpayers.   The banks went on to repeat their failing practices and start the failure and bail out cycle all over again.   

Those who first receive the fake money get to spend it at it's full value.   Those who get the money later are the losers because the value of the money has been reduced.  The loss in value usually takes six months or more for this loss to show up.    Because cause and effect are significantly separated, it's easy to hide the cause form the public.   Banks also create fake money (check book money & credit card money) by simply loaning money that they don't have.   

Contact: the Video Producers:

Ludwig Von Mises Institute  in Auburn, Alablama   36849
 334-844-2500

Companion Book:  "The Case against the Feds"   
by   Murry N. Rothfine  (Author's  Name ???)