Questions to the FRB
 

This might be an interesting read...most likely a fictional call into the SF FRB and asked a few questions.


The Federal Reserve System is a Private Bank

The following is a conversation with Mr. Ron Supinski of the Public Information Department of the San Francisco, Federal Reserve Bank, October 8th, 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 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 - 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 - Have a good day and thanks for your time.

MR. SUPINSKI - Thanks for calling.

You are venturing into tinfoil hat territory with this, every country in the world is working under a similar system.
When gold and specie currency was the rule, there were far more frequent financial disasters. It isn't a conspiracy, just the method used to run a fiat currency system.
Don't confuse an effective monetary system with gross excess government spending. They are two vastly different subjects.



Just thought our gentle readers may get a chuckle from the other subjects on that site:

ACTION NOW!
Anthrax Cover-up
California Recall
Children of Satan-Bush Liars' Club
Children of Satan II-The Beast-Men
Controlling Voting Machines
Disinformation in Media
Doctored Media Photos
General Wesley Clark
How Bush Stole 2000 Election
John Kerry, Illuminatus
Impeachment of G.W. Bush
New World Order

911, Conspiracy and Illuminati
Bush Liars' Club
Choosing Evil
Conned by the Neocons
Defending the Indefensible
Do-Si-Do Takes Two to Tango
Fall of the WTC
Holocaust History
Laura Demos Stepford Lying
Outsourcing America
Partisan Politics, Propaganda
Peace through Strength Lies
Religion, Rights, Civility and NWO
Righteous Joe from WND
Role of Force in Libya
Roving Curveballs on Clarke
Shining a Light on the Illuminati
The Haters
The Tutti-Fruiti Express
WMD Lies
Zionism vs Jews



This kind of drivel doesn't really qualify as a meaningful study of anything except conspiracy theory and the pathetic losers who propagate it. There are many valid economic studies on the fiat monetary system, you might want to read a few before you rely on reconstructed and non-existent conversations put up by this type of site.

My apologies for being a "Pathetic Loser" for propagating it. Sorry I didn't include a "valid" economic study on fiat currency. Yes, I have read a few, thank you.

The nature of that website is of conspiracy, however there are very valid points to that conversation.

- The FRB is a private entity see Lewis v. United States 1982
however according the FRB, it is not a private entity for the sake of profit: FRB: FAQs: Federal Reserve System
Who does actually own the FRB? Obviously it is National Banks (that have been charted) and some other banks that meet requirements. Banks must invest 3% of their capital as stock and receive 6% dividends. You are a smart guy, I'm sure you know how all this works... but if the FRB is not a private entity it is a facist entity (by definition)

- according the FRB of NY there is about $829bil (USD) in circulation right now: How Currency Gets into Circulation - Fedpoints - Federal Reserve Bank of New York
the national debt is looming near $10trillion, so then the "caller" was correct to say that there is not enough USD in circulation to pay it.
you will probably accuse me of not knowing how the national debt works against GDP, etc or that I haven't read enough "valid" studies on it.

There can't be much debate that the current economic debacle we are in right now is/was a function of credit/inflation. The FRB regulates the member banks quite a lot, as a matter of fact the fact you can only withdraw from your savings account so many times a quarter is because the FRB says so. When the FRB cuts interest rates this obviously benefits the banks directly.

The unbridled power of the FRB is putting the nation's ultimate power (economic) in the hands of so few.

Just curious, what part of the conversation was not true?

The national debt is simply the difference between tax revenues and government spending, nothing more and nothing less. The real figure is close to 92 Trillion dollars if you consider SS and medicaid/medicare-see the excerpt from the FRB speech I have posted here.

Is this in any way payable? No, decades of out of control spending and promises to spend spell the demise of the fantasy. It just won't happen.

The FR has nothing to do with the national debt, the debt has been created by decades of overspending by government.

The current "credit crunch" was ignited by government entities, namely Freddie Mac and Fannie Mae, being allowed to operate without proper oversight. There are several other factors involved, but this is the largest.

If you actually believe the drivel you have posted, by all means act on it, the loser comment wasn't directed at you but to the operators of the site.

Money is nothing but a convenient medium of exchange, it matters not if it is gold, paper, widgets or any other commodity-when you spend more than you make you create debt.

The imaginary and superficial argument your alleged talk show conversation generates is similar to a who's on first comedy spiel- entertaining, but not worth the keystrokes to parse. This fiction is posted on every conspiracy site out there, buy the whole thing and all of the conspiracy or ask yourself if the argument actually reflects reality. It makes no difference to me.

Jungle I respect your views on monetary and fiscal policy, however I respectfully disagree.

- I'm assuming that you believe Milton Friedman's approach to economics from previous posts. To say that monetary policy and fiscal policy are different animals is to ignore the impact of Keynesian economics on the US and specifically the FRB. Milton Friedman talks about the impact of deflation/inflation/ depression in the 30s/ gold standard

YouTube - Milton Friedman explains role of gold in Great Depression.

The sub-prime debacle mirrors US monetary policy in regard to artificially low interest rates.

See if this fits, 10 minutes or so, and it brings up some very good reasons and explanations for the subprime mess.

http://www.youtube.com/watch?v=H5tZc8oH--o

that was a great video!