WHO REALLY OWNS THE FEDERAL RESERVE?
Thomas Jefferson, declared, "If the American people ever allow
private banks to control the issue of their money, first by inflation and
then by deflation, the banks and corporations that will grow up
around them, will deprive the people of their property until their
children will wake up homeless on the continent their fathers
conquered."
Did Jefferson have a crystal ball when he spoke these words? Has a
private bank taken control over our nation's money supply?
The following is a conversation with Mr. Ron Supinski of the Public
Information Department of the San Francisco, Federal Reserve
Bank. This is an account of that conversation reconstructed to the
best of my ability from notes taken during the conversation on
October 8, 1992.
- CALLER - Mr. Supinski, does my country own the Federal Reserve
System?
- MR. SUPINSKI - We are an agency of the government.
- CALLER - That's not my question. Is it owned by my country?
- MR. SUPINSKI - It is an agency of the government created by
congress.
- CALLER - Is the Federal Reserve a Corporation?
- MR. SUPINSKI - Yes
- CALLER - Does my government own any of the stock in the Federal
Reserve?
- MR. SUPINSKI - No, it is owned by the member banks.
- CALLER - Are the member banks private corporations?
- MR. SUPINSKI - Yes
- CALLER - Are Federal Reserve Notes backed by anything?
- MR. SUPINSKI -Yes, by the assets of the Federal Reserve but,
primarily by the power of congress to lay tax on the people.
- CALLER - Did you say, by the power to collect taxes is what backs
Federal Reserve Notes?
- MR. SUPINSKI - Yes
- CALLER - What are the total assets of the Federal Reserve?
- MR. SUPINSKI - The San Francisco Bank has $36 Billion in assets.
- CALLER - What are these assets comprised of?
- MR. SUPINSKI - Gold, the Federal Reserve Bank itself and
government securities.
- CALLER - What value does the Federal Reserve Bank carry gold per
oz. on their books?
- MR. SUPINSKI - I don't have that information but the San Francisco
Bank has $1.6 billion in gold.
- CALLER - Are you saying the Federal Reserve Bank of San
Francisco has $1.6 billion in gold, the bank itself and the balance of
the assets is government securities?
- MR. SUPINSKI - Yes.
- CALLER - Where does the Federal Reserve get Federal Reserve
Notes from?
- MR. SUPINSKI - They are authorized by the Treasury.
- CALLER - How much does the Federal Reserve pay for a $10
Federal Reserve Note?
- MR. SUPINSKI - Fifty to seventy cents.
- CALLER - How much do they pay for a $100.00 Federal Reserve
Note?
- MR. SUPINSKI - The same fifty to seventy cents.
- CALLER - To pay only fifty cents for a $100.00 is a tremendous gain,
isn't it?
- MR. SUPINSKI - Yes
- CALLER - According to the U.S. Treasury, the Federal Reserve pays
$20.60 per 1,000 denomination or a little over two cents for a
$100.00 bill, is that correct?
- MR. SUPINSKI - That is probably close.
- CALLER - Doesn't the Federal Reserve use the Federal Reserve
Notes that cost about two cents each to purchase U.S. Bonds from
the government?
- MR. SUPINSKI - Yes, but there is more to it than that.
- CALLER - Basically, that is what happens?
- MR. SUPINSKI - Yes, basically you are correct.
- CALLER - How many Federal Reserve Notes are in circulation?
- MR. SUPINSKI - $263 billion and we can only account for a small
percentage.
- CALLER - Where did they go?
- MR. SUPINSKI - Peoples mattress, buried in their back yards and
illegal drug money.
- CALLER - Since the debt is payable in Federal Reserve Notes, how
can the $4 trillion national debt be paid-off with the total Federal
Reserve Notes in circulation?
- MR. SUPINSKI - I don't know.
- CALLER - If the Federal Government would collect every Federal
Reserve Note in circulation would it be mathematically possible to
pay the $4 trillion national debt?
- MR. SUPINSKI - No
- CALLER - Am I correct when I say, $1 deposited in a member bank
$8 can be lent out through Fractional Reserve Policy?
- MR. SUPINSKI - About $7.
- CALLER - Correct me if I am wrong but, $7 of additional Federal
Reserve Notes were never put in circulation. But, for lack of better
words were "created out of thin air " in the form of credits and the two
cents per denomination were not paid either. In other words, the
Federal Reserve Notes were not physically printed but, in reality were
created by a journal entry and lent at interest. Is that correct?
- MR. SUPINSKI - Yes
- CALLER - Is that the reason there are only $263 billion Federal
Reserve Notes in circulation?
- MR. SUPINSKI - That is part of the reason.
- CALLER - Am I mistaking that when the Federal Reserve Act was
passed (on Christmas Eve) in 1913, it transferred the power to coin
and issue our nations money and to regulate the value thereof from
Congress to a Private corporation. And my country now borrows
what should be our own money from the Federal Reserve (a private
corporation) plus interest. Is that correct and the debt can never be
paid off under the current money system of country?
- MR. SUPINSKI - Basically, yes.
- CALLER - I smell a rat, do you?
- MR. SUPINSKI - I am sorry, I can't answer that, I work here.
- CALLER - Has the Federal Reserve ever been independently
audited?
- MR. SUPINSKI - We are audited.
- CALLER - Why is there a current House Resolution 1486 calling for a
complete audit of the Federal Reserve by the G.A.O. and why is the
Federal Reserve resisting?
- MR. SUPINSKI - I don't know.
- CALLER - Does the Federal Reserve regulate the value of Federal
Reserve Notes and interest rates?
- MR. SUPINSKI - Yes
- CALLER - Explain how the Federal Reserve System can be
Constitutional if, only the Congress of the U.S., which comprises of
the Senate and the House of Representatives has the power to coin
and issue our money supply and regulate the value thereof? [Article
1 Section 1 and Section 8] Nowhere, in the Constitution does it give
Congress the power or authority to transfer any powers granted
under the Constitution to a private corporation or, does it?
- MR. SUPINSKI - I am not an expert on constitutional law. I can refer
you to our legal department.
- CALLER - I can tell you I have read the Constitution. It does NOT
provide that any power granted can be transferred to a private
corporation. Doesn't it specifically state, all other powers not granted
are reserved to the States and to the citizens? Does that mean to a
private corporation?
- MR. SUPINSKI - I don't think so, but we were created by Congress.
- CALLER - Would you agree it is our country and it should be our
money as provided by our Constitution?
- MR. SUPINSKI - I understand what you are saying.
- CALLER - Why should we borrow our own money from a private
consortium of bankers? Isn't this why we had a revolution, created a
separate sovereign nation and a Bill of Rights?
- MR. SUPINSKI - (Declined to answer).
- CALLER - Has the Federal Reserve ever been declared
constitutional by the Supreme Court?
- MR. SUPINSKI - I believe there has been court cases on the matter.
CALLER - Have they been Supreme Court Cases?
- MR. SUPINSKI - I think so, but I am not sure.
- CALLER - Didn't the Supreme Court declare unanimously in A.L.A.
Schechter Poultry Corp. vs. U.S. and Carter vs. Carter Coal Co. the
corporative-state arrangement an unconstitutional delegation of
legislative power? ["The power conferred is the power to regulate.
This is legislative delegation in its most obnoxious form; for it is not
even delegation to an official or an official body, presumptively
disinterested, but to private persons." Carter vs. Carter Coal Co.]
- MR. SUPINSKI - I don't know, I can refer you to our legal
department.
- CALLER - Isn't the current money system a house of cards that must
fall because, the debt can mathematically never be paid-off?
- MR. SUPINSKI - It appears that way. I can tell you have been looking
into this matter and are very knowledgeable. However, we do have a
solution.
- CALLER - What is the solution?
- MR. SUPINSKI - The Debit Card.
- CALLER - Do you mean under the E.F.T. Act (Electronic Funds
Transfer)? Isn't that very frightening, when one considers the
capabilities of computers? It would provide the government and all
it's agencies, including the Federal Reserve such information as: You
went to the gas station @ 2:30 and bought $10.00 of unleaded gas
@ $1.41 per gallon and then you went to the grocery store @ 2:58
and bought bread, lunch meat and milk for $12.32 and then went to
the drug store @ 3:30 and bought cold medicine for $5.62. In other
words, they would know where we go, when we went, how much we
paid, how much the merchant paid and how much profit he made.
Under the E.F.T. they will literally know everything about us. Isn't that
kind of scary?
- MR. SUPINSKI - Yes, it makes you wonder.
- CALLER - I smell a GIANT RAT that has overthrown my constitution.
Aren't we paying tribute in the form of income taxes to a consortium
of private bankers?
- MR. SUPINSKI - I can't call it tribute, it is interest.
- CALLER - Haven't all elected officials taken an oath of office to
preserve and defend the Constitution from enemies both foreign and
domestic? Isn't the Federal Reserve a domestic enemy?
- MR. SUPINSKI - I can't say that.
- CALLER - Our elected officials and members of the Federal Reserve
are guilty of aiding and abetting the overthrowing of my Constitution
and that is treason. Isn't the punishment of treason death?
- MR. SUPINSKI - I believe so.
- CALLER - Thank you for your time and information and if I may say
so, I think you should take the necessary steps to protect you and
your family and withdraw your money from the banks before the
collapse, I am.
- MR. SUPINSKI - It doesn't look good.
- CALLER - May God have mercy on the souls who are behind this
unconstitutional and criminal act called the Federal Reserve. When
the ALMIGHTY MASS awakens to this giant hoax, they will not take it
with a grain of salt. It has been a pleasure talking to you and I thank
you for your time. I hope you will take my advice before it does
collapse.
- MR. SUPINSKI - Unfortunately, it does not look good.
- CALLER - Have a good day and thanks for your time.
- MR. SUPINSKI - Thanks for calling.
If the reader has any doubts to the validity of this conversation, call
your nearest Federal Reserve Bank, YOU KNOW THE QUESTIONS
TO ASK! You won't find them listed under the Federal Government.
They are in the white pages, along with Federal Express, Federal
Deposit Insurance Corp. (FDIC), and any other business. Find out for
yourself if all this is true. And then, go to your local law library and
look up the case of Lewis vs. U.S., case #80-5905, 9th Circuit, June
24, 1982.
It reads in part: "Examining the organization and function of
the Federal Reserve Banks and applying the relevant factors, we
conclude that the federal reserve are NOT federal instrumentalities .
.
. but are independent and privately owned and controlled
corporations . . . federal reserve banks are listed neither as `wholly
owned' government corporations [under 31 U.S.C. Section 846] nor
as 'mixed ownership' corporations [under 31 U.S.C. Section 856] . . .
28 U.S.C. Sections 1346(b), 2671.
`Federal agency' is defined as:
the executive departments, the military departments, independent
establishments of the United States, and corporations acting
primarily as instrumentalities of the United States, but does not
include any contractors with the United States . . .
There are no sharp criteria for determining whether an entity is a
federal agency within the meaning of the Act, but the critical factor is
the existence of the federal government control over the `detailed
physical performance' and `day to day operations' of that entity.
Other factors courts have considered include whether the entity is an
independent corporation . . . whether the government is involved in
the entity's finances, . . . and whether the mission of the entity
furthers the policy of the United States . . .
Examining the organization and function of the Federal Reserve Banks, and
applying the relevant factors, we conclude that the Reserve Banks
are not federal instrumentalities . . .
It is evident from the legislative history of the Federal Reserve Act
that Congress did not intend to give the federal government direction
over the daily operation of the Reserve Banks . . .
The fact that the Federal Reserve Board regulates the Reserve
Banks does not make them federal agencies under the Act . . .
Unlike typical federal agencies, each bank is empowered to hire and
fire employees at will. Bank employees do not participate in the Civil
Service Retirement System. They are covered by worker's
compensation insurance, purchased by the Bank, rather than the
Federal Employees Compensation Act. Employees traveling on Bank
business are not subject to federal travel regulations and do not
receive government employee discounts on lodging and services . . .
Finally, the Banks are empowered to sue and be sued in their own
name. 12 U.S.C. Section 341. They carry their own liability insurance
and typically process and handle their own claims . . ."
According to the Federal Reserve Bank of Philadelphia, "When the
Federal Reserve was created, its stock was sold to the member
banks." ("The Hats The Federal Reserve Wears", published by the
Federal Reserve Bank of Philadelphia)
The original Stock-holders of the Federal Reserve Banks in 1913
were the Rockefeller's, J.P. Morgan, Rothschild's, Lazard Freres,
Schoellkopf, Kuhn-Loeb, Warburgs, Lehman Brothers and Goldman
Sachs.
The MONEY-CHANGERS wanted to be insured they had a
monopoly over our money supply, so Congress passed into law Title
12, Section 284 of the United States Code. Section 284 specifically
states, "NO STOCK ALLOWED TO THE U.S."
* Monopoly - "A privilege or peculiar advantage vested in one or
more persons or companies, consisting in the exclusive right (or
power) to carry on a particular business or trade, manufacture a
particular article, or control the sale of the whole supply of a particular
commodity, A form of market structure in which only a few firms
dominate the total sales of a product or service.
`Monopoly', as prohibited by Section 2 of the Sherman Antitrust Act,
has two elements: possession of a monopoly power in relevant
market and willful acquisition or maintenance of that power, as
distinguished from growth or development as a consequence of a
superior power, business acumen, or historical product. A monopoly
condemned by the Sherman Act is the power to fix prices, or exclude
competition, coupled with policies designed to use and preserve that
power." (Black's Law Dictionary, 6th Edition)
The Federal Reserve Act goes one step farther, "No Senator or
Representative in Congress shall be a member of the Federal
Reserve Board or an officer or director of a Federal Reserve Bank."
They didn't want We The People to have any say in the operation of
their monopoly through our elected officials.
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