ost people think that the Federal Reserve is a Government Agency. It is not. It is a corporation. It is a hybrid organization with some characteristics of government and some characteristics of private corporations. The Federal Reserve Bank of St Louis’ own website confirms this “The Federal Reserve Banks are not a part of the federal government, but they exist because of an Act of Congress (The 1913 Federal Reserve Act). The Federal Reserve Banks are set up like private corporations, member banks hold stock in the Federal Reserve Banks and earn dividends.“
The Fed is one of the most secretive organizations in the United States. It has been said that Congress is more aware of what the CIA does than what the Fed does.
The creation of the Federal Reserve – A creature from Jekyll Island
To understand the history of the Fed you have to go back to 1910 to 1913; the plan to create the Federal Reserve can only be defined as pure Machiavelli brilliance, it was done in total secrecy. Edward G. Griffin unveiled this secret in his book The Creature from Jekyll Island.
In November 1910, six men – Nelson Aldrich, A. Piatt Andrew, Henry Davidson, Arthur Shelton, Frank Vanderlip, and Paul Warburg – secretly got together on Jekyll Island (an exclusive resort off the coast of Georgia) to write a plan to reform the United States banking system. What did all these men have in common? They were ultra-rich elite financiers and bankers. They represented the banking cartel.
Congress was at the time getting a lot of pressure from the American people to produce a bill to control the “big bad banks” that were ruining the economy, causing financial panics and personal ruin for many. The bankers thought that if the country was going to have a banking reform bill, instead of sitting around waiting to see how it would turn out, it would be better if the “big bad banks” could write the banking reform bill themselves and create (with a stroke of a pen) their own banking rules and regulations. Brilliant, right?! A bit like the fox guarding the hen house.
After an intense week on Jekyll Island, those six men drafted their cartel agreement, took it back to Washington DC, put a nice name on the document calling it the Federal Reserve Act, and got it passed by Congress in 1913. But if this wasn’t bad enough, Congress went a step further, not only did they allow the banks to regulate their own industry, Woodrow Wilson and the whole of Congress gave the Federal Reserve the power to create the nation’s money supply, which by the way is unconstitutional.
Woodrow Wilson took the power to create money from Congress and transfer it to a group of private individuals acting like a banking cartel. The Constitution of the United States says very clearly that: “Congress shall have the power to coin money and regulate the value thereof.” So, not only the Federal Reserve as an institution is not federal, but it is also unconstitutional and arguably usurping the power from Congress to create the nation’s money supply.
What does the Federal Reserve do?
The Federal Reserve is the most powerful economic institution in the United States, responsible for managing monetary policy and regulating the financial system. It does this by setting interest rates and influencing the supply of money in the economy.
Today, inflation in the United States reached 8.5%, its highest rate since 1982. On the matter of inflation, it seems (looking at the news reports from the mainstream media) that we have a problem with definitions. The definition of inflation seems to change depending on which party is running the country.
Historically, inflation had a singular meaning. Inflation means a devaluation of the currency. Today we are told that inflation is a rise in prices. However, the rising prices are a consequence of the expansion of the money supply.
The US Dollar lost 99% of its value since 1913. Between 1783 and 1913, the U.S. dollar was a real store of wealth. Inflation within the United States was essentially zero. If you saved one dollar in 1800, a hundred years later you could still purchase approximately the same amount of goods with your savings.
But in 1913, something changed, the U.S. dollar started a long and steady journey down the path of devaluation. Using the U.S Government’s own figures, to obtain the same amount of purchasing power of $100 in 1913, you would need over $2000 today.
So, what changed in 1913? Yes, you are guessing right. That was the year America adopted the Federal Reserve Banking system and the nation took its first steps towards abolishing the gold standard and replacing it with a banking system that allowed for unlimited paper money to be created.
So, what would be the solution to this predicament? Abolishing the Fed? Well, this is where the financiers and bankers are once again demonstrating their Machiavelli brilliance. The current banking system is doomed to implode at some point; the financiers and bankers know that. So, what do they do? They pull a rabbit out of their hat and name it CBDC (Central Banks Digital Currencies.)
The Fed’s next game plan is to transition into a new monetary system where people will not have money in their pockets but central banks’ digital currencies; a one-world monetary system totally controlled by the banks. Money held on a CBDC App or Website will be equivalent to a deposit at the central bank. All the transactions that people will do will be monitored and approved by the central bank. This is sold to the public as a convenient, safe, and practical way to transact. But beware of wolves wearing sheep’s clothing! In effect people would transfer full control of their money to the central bank, giving the authorities the perfect tool to surveil, coerce, and control them. Think Trojan Horse. If your thinking is not in line with the government’s narrative, what do you think will happen to your money held on the CBDC App or Website?
So, the truth about the Federal Reserve is that it is not Federal, but it can disguise itself as a fox guarding the hen house, a Trojan Horse going through the fortress walls, and a wolf wearing sheep clothing.
Author, Blogger & Storyteller with an urge to write about history, philosophy, and human nature. You can find out more about myself, my book “This Is Your Quest” and my blog at https://authorjoannereed.net/. I welcome the opportunity to engage directly with my readers so feel free to contact me should you feel the urge to do so at firstname.lastname@example.org. A good story makes history!