Dr. Ellen K. Rudolph Blog What You Probably Don’t Know about the Federal Reserve – Dr. Ellen's Blog

What You Probably Don’t Know about the Federal Reserve

Posted on October 15, 2012 By

First of all, the Federal Reserve is a private financial institution. Most Americans do not know that.

The courts have ruled that Federal Reserve Banks are “independent, privately owned and locally controlled operations”, and there is not sufficient “federal government control over ‘detailed physical performance’ and ‘day to day operation’” of the Federal Reserve Bank for it to be considered a federal Agency.”

The term federal agency carries with it the assumption that the federal government has direct oversight over what the Fed does, but in this case it does not.

The Federal Reserve is politically independent and it keeps its records secret. Congress has never even been able to force an audit of the Federal Reserve.

So there you are — so much to learn!

Through a complex system known as fractional reserve banking, central banks are permitted to print money thereby creating inflation that then creates the ‘boom and bust’ cycles that have plagued our economy since the Federal Reserve was established. Some lay the blame for the Great Depression and the high level of inflation during the 20th Century at the door of the Federal Reserve, and probably rightly so.

Americans need to understand the inevitable result of central banks and the government’s ability to print money to pay for its debts. Until then, the artificial manipulation of money will continue to lead us down the path to economic destruction. Without any real understanding of that time in our history known as The Great Depression, we will continue to repeat the same senseless mistakes over and over again.

FDR’s NEW DEAL did not get us out of the Depression yet that myth is firmly entrenched in the minds of an American public that has no idea of how we are being exploited by a monetary system that celebrates spending while enriching banks.

Republicans and Democrats alike share a significant portion of the blame for our present economic crisis. They have allowed massive increases in currency inflation under their watch while both recent past and present Federal Reserve Chairmen (ie.,Greenspan and Bernacke) refused to heed warning signs about the housing bubble.

In other words, the Federal Reserve system does not limit crises like these — it actually creates them.

In the following links  you can take a look at the failed polities of the past through the eyes of modern day historians who show very clearly that the boom and bust cycles of free economies is the direct result of government manipulation of the money supply.

What you will learn is that the current economic crisis is the result of over regulation in the financial markets, not underregulation; and it is the result of massive government spending to ‘stimulate’ the economy and tinker with interest rates.

This kind of spending, however,  has never worked. Go figure.


What is ‘Fractional Reserve Banking’?
Fractional-reserve banking is the banking practice in which banks keep only a fraction of their deposits in reserve (as cash and other highly liquid assets) and lend out the remainder, while maintaining the simultaneous obligation to redeem all these deposits upon demand. Most countries operate under this type of system. It is also known as fractional deposit lending.

VIDEOS: Money As Debt – Fractional Reserve Banking – Cartels Robbing the Public

PART I of 5 – Money as Debt

PART 2 of 5– Money As Debt

PART 3 of 5 – Money as Debt

PART 4 of 5 – Money as Debt

PART 5 of 5 – Money as Debt

VIDEO: Quantitative Easing Explained – five million views and growing — What the Federal Reserve is up to and how we got here.

BOOK: The Case Against the Fed by Murray N. Rothbard
This is the most powerful case against the American central bank ever written.

VIDEO: Lecture by Bill Still, Producer of The Money Masters (DVD series)
The powers of financial capitalism had a far-reaching plan, nothing less than to create a world system of financial control in private hands able to dominate the political system of each country and the economy of the world as a whole.

COMMENTARY: Elaine Meinel Supkis’ comments about old Federal Reserve speeches, how struck she is by how similar today’s problems are to past difficulties. She says, “People thought Greenspan was very smart and clever because he talked in circles and made little rational sense. This supposedly made his many mysterious policies look difficult and thus, we had to trust him because he knew more than us little people. Well, that was a false front. Today, we go back to …”

BOOK: Case for Gold: A Minority Report of the United States Gold Commission
by Ron Paul and Lewis Lehrman

In 1982, Ron Paul served on the U.S. Gold Commission to evaluate the role of gold in the monetary system. In fact, the Commission was his idea. But Ron Paul couldn’t pick the members, so from the beginning, the deck was stacked. The majority was dominated by monetarists, who saw gold as too scarce and paper as just fine. Ron Paul’s team was ready, however, with a marvelous minority report. Rarely has a dissent on a government commission done so much good! The result was The Case for Gold, and it was the greatest result of the commission. It covers the history of gold in the United States, explains that its breakdown was caused by…

BOOK: The Creature from Jekyll Island: A Second Look at the Federal Reserve
by G. Edward Griffin

Where does money come from? Where does it go? Who makes it? The money magicians’ secrets are unveiled in this book. We get a very close look at their mirrors and smoke machines, their pulleys, cogs, and wheels that create the grand illusion called money. A dry and boring subject? Just you wait! You’ll be hooked in five minutes. This book reads like a detective story — which it really is. But it’s all true. This book is about the most blatant scam of all history. It’s all here: the cause of wars, boom-bust cycles, inflation, depression, prosperity. Creature from Jekyll Island will change the way you view the world, politics, and money.


NOTE: You can find other important and invaluable books on MONEY and FINANCIAL THEORY here, under BOOKS