H.R. 2755 to Abolish the Federal Reserve

http://www.picassodreams.com/picasso_dreams/2007/06/hr_2755_to_abol.html ^ | June 17, 2007

[Moonman62]

The Treasury is still the institution that coins money. And like the Federal Reserve, the Treasury was created by an act of Congress. Why kooks like Ron Paul call for the abolishment of the Federal Reserve, but not the Treasury is beyond me. But trying to understand crazy people isn’t an easy thing to do.

[theBuckwheat]

“The Federal Reserve is an agency of US Government created by Congress in 1913. The member banks under Federal Reserve are actually private corporations and all the stocks of Federal Reserve are owned by member banks. Federal reserve notes are in theory backed by the assets of the Federal Reserve, but primarily by the power of Congress to lay taxes on people. See excerpts of interview with Mr. Ron Supinski of the Public Information Department of the San Francisco, Federal Reserve Bank on October 8, 1992. [1]”

from: http://www.sourcewatch.org/index.php?title=Federal_Reserve_Corporation

footnote link: http://www.maxexchange.com/ybj/chapter_1.htm

From: Lewis v. United States, 680 F.2d 1239 (1982):

“Federal reserve banks are not federal instrumentalities for purposes of a Federal Tort Claims Act, but are independent, privately owned and locally controlled corporations in light of fact that direct supervision and control of each bank is exercised by board of directors, federal reserve banks, though heavily regulated, are locally controlled by their member banks, banks are listed neither as “wholly owned” government corporations nor as “mixed ownership” corporations; federal reserve banks receive no appropriated funds from Congress and the banks are empowered to sue and be sued in their own names. . . .”

Futher: the Appeals Court “held that federal reserve banks are not federal instrumentalities for purposes of the Act, but are independent, privately owned and locally controlled corporations.”

see also:
http://www.monetary.org/federalreserveprivate.htm

This article notes that the Federal Reserve operates outside of the Constitution from the standpoint that just like GM or Microsoft, it is not organized under any of the three branches of government enumerated in the Constitution.

I can find no record that Federal Reserve has ever had an independent audit. That would be an excellent place to start. I would raise the issue of how Sarbanes-Oxley touches on how publicly listed shareholders of the Federal Reserve like Citibank can “mark to market” the value of their shares in the Federal Reserve corporation.

[Moonman62]

But where is the Fed incorporated? All private companies are incorporated somewhere.

[Moonman62]

Federal reserve notes are in theory backed by the assets of the Federal Reserve,

That's bull. Dollars are backed by everything they can buy, which is quite a lot.

[Moonman62]

“Federal reserve banks are not federal instrumentalities for purposes of a Federal Tort Claims Act, but are independent, privately owned and locally controlled corporations in light of fact that direct supervision and control of each bank is exercised by board of directors, federal reserve banks, though heavily regulated, are locally controlled by their member banks, banks are listed neither as “wholly owned” government corporations nor as “mixed ownership” corporations; federal reserve banks receive no appropriated funds from Congress and the banks are empowered to sue and be sued in their own names. . . .”

So does this mean that the Federal Reserve bank in Atlanta is incorporated in the state of Georgia?

[steven84]

somewhat wrong...the fed prints (”coins”)there own currency....aka federal reserve note....when the treasury did this, it was known an united states note.....there is a difference.....the only coinage that happens through the treasury are the actuall coins produced at mints.

here is some reading that kinda clarifies the issue....
http://www.earthnews.net/articles/thefederalreserve.htm

[theBuckwheat]

The Federal Reserve is a Federal corporation, like the Boy Scouts and the Red Cross. The difference is that the shares are owned by National banks in direct proportion to their assets. If your town has a bank that has the word “national” in its name, it is a shareholder in the Federal Reserve corporation.

(Organizations like the Red Cross are called “Congressionally Chartered Organizations” or “Title 36 Corporations”. See:
http://www.llsdc.org/sourcebook/docs/CRS-RL30340.pdf)

A key to the status of all these organizations is simple: in whose name do they file lawsuits and who represents them in court? The Federal Reserve files suit in its own name and defends itself with its own attorneys, not ones in the employ of the federal government.

The court case I cited was decided over the issue of whether the Federal Reserve was an “agency” of the federal government for purposes of someone filing suit against it. The judge ruled it was not an agency of the federal government.

[Moonman62]

This article notes that the Federal Reserve operates outside of the Constitution from the standpoint that just like GM or Microsoft, it is not organized under any of the three branches of government enumerated in the Constitution.

The article also notes that the Fed was created by Congress, and can be dismantled by Congress. Since the Constitution gives Congress broad powers over commerce and the monetary system, I'd say that makes it constitutional. The Treasury was also created by Congress, but I never see anyone complaining about that.

The article also whines that much money creation is done by the loan process of private banks. So what? That's the way it happened before the Fed was created. Some banks even used their own currency. If anything, the creation of the Fed put money creation more under the direction of the federal government.

[Moonman62]

(Organizations like the Red Cross are called “Congressionally Chartered Organizations” or “Title 36 Corporations”. See: http://www.llsdc.org/sourcebook/docs/CRS-RL30340.pdf)

OK, I accept that, but I wouldn't say that puts the Fed in the same category as private corporations. Or even in the same category as the Red Cross. The government still appoints and approves the majority of the Fed governors, and still maintains strict oversight with frequent congressional testimony.

[steven84]

how come the president cant attend any meeting that he wants too? Also, check out how the fed actually was passed by congress....christmas break...small group of congressman....in all honesty, to truly understand the situation you need to read a book titled “The Creature from Jekyll Island” really fascinating and full of information and what could be called prophecy....read the chapter about saddam and what would happen if we tried to get rid of him....it was dead on

[stainlessbanner]

read for later

[traviskicks]

bookmark

[DugwayDuke]

“was kennedy a loon?....know what you speak of, before you speak of it.”

Which Kennedy and campared to what?

[theBuckwheat]

>>
The government still appoints and approves the majority of the Fed governors, and still maintains strict oversight with frequent congressional testimony.
<<

Yes, and since these governors are then employees of the Fed and are almost impossible to remove once appointed, what does this mean with respect to *ownership*? The Fed is normally responsive to the political atmosphere, but it is disconnected from it by structure. This is called an “independent” central bank, as compared to a central bank full of political hacks which is what happened to various previous US government central banks.

Even so, the only real leverage that the President has on the Fed is to get Congress to change the law. To even touch on that threat touches political forces that go to the heart and core of power-oriented politicians, which is to say, almost every one of them.

The US Government does not hold any shares in the corporation, and never has. Indeed, when Roosevelt under Presidential Executive Order number 6102, confiscated all privately held Gold in the United States on April 5, 1933, he directed citizens to “exchange” their all their gold for Federal Reserve Notes. To whom did the financial benefit accrue? Only to the shareholders of the Federal Reserve corporation (the national banks) because the Federal Reserve was able to print money to pay for it.

This was not an inconsequential amount of gold. The Fort Knox Bullion Depository was constructed to provide the necessary storage for the flood of gold that was smelted into bar form.

Some followers of the history of fiat money/central banking in the United States call this forced liquidation a de-facto bankruptcy. With the addition of the outlawing of the “gold clause” in contracts, this forced citizens to only use Federal Reserve money as tender in their business transactions. Today with electronic money, in truth, all forms of dollars reside in sub-accounts of the Federal Reserve, meaning that the Federal Reserve owns all money in the US.

If you think that you own, in the full legal meaning of the word, the Federal Reserve Notes that are in your wallet, just change one of them, say by putting Alfred E. Newman’s drawing over Lincoln’s face, and then take it down to your local bank to deposit.

If you own your car, you can paint it any color you want. It is a felony to do the same with US currency, even if you don’t change the face value or attempt to defraud anyone.

See: “Feds Call Silver Surfer Quarters Illegal” at: http://www.comicbookmovie.com/news/articles/3647.asp

[Moonman62]

If you think that you own, in the full legal meaning of the word, the Federal Reserve Notes that are in your wallet, just change one of them, say by putting Alfred E. Newman’s drawing over Lincoln’s face, and then take it down to your local bank to deposit.

I want to own FRN's to buy things, not to use as coloring books, or any other purpose. They do what they are supposed to do.

[steven84]

JFK, the only kennedy capable of issuing an E.O.

[steven84]

What are the supposed to do exactly....transfer wealth to those who already have it???

[Moonman62]

FRN's are a unit of account. That's all they are.

Oh I forgot, they are also an object of fascination for conspiracy kooks.

[4CJ]

Tie the issuance of FRN to real physical reserves of gold/silver. The only difference between me and the fed is that I would go to jail for printing all the money I wanted.

[Dixielander]

Keyd, thank you for your post. Ron Paul is one courageous and honest man. God bless and keep him! There is no law saying a citizen must pay a federal income tax because the law was never properly ratified. the Income Tax is just a big scam and its lackeys have ruined many lives.

Right now in fact federal marshalls and other agents of the IRS have Ed and Elaine Brown under siege in New Hampshire. Check it out at youtube.com

Anyone wanting to know the truth about the legality of the IRS, the privately owned Federal Reserve Bank, or the invasive RFID chips, must see Aaron Russo’s DVD, “America: Freedom to Fascism. (God bless and keep Aaron too. He’s another courageous, intelligent man who also loves freedom.)

As for you, Dugwayduke, I can only assume that you haven’t taken the time to learn the facts, or you are incapable of understanding truth. I hope you wake up and stop being a sheeple.