Understanding That The Federal Reserve Isn’t A Government Entity
If you listen to the Underground USA podcast you have heard me talk about the book, The Creature from Jekyll Island: A Second Look at the Federal Reserve. It is an accurate and damning account of the genesis, structure, and mission of the US Federal Reserve (The Fed). The Fed is not a federal department, agency, or commission. In fact, aside from legislation that was codified ceding responsibility for the currency used by our nation, The Fed is a private-sector conglomerate of the world’s largest banks.
Even though The Fed has been sold to the people as an apparatus that looks out for the US economy – and, therefore, the US citizen, it is anything but that.
Today’s Federal Reserve
In its current form, it does nothing more than look out for the bottom lines of the financial institutions it is made of. Less a steward of the US dollar and the nation’s economy, The Fed exists as a sentinel that assures the profitability of the banks it is comprised of. When one of those banks recklessly mismanages its risk portfolio, the US taxpayers have no choice but to bail them out.
Prime contemporary examples of this come in the recent FDIC acquisition of deposits from SV Bank and Signature Bank.
As reported by USA Today (not a conservative publication by a long shot):
“When Silicon Valley Bank collapsed on Friday, it created the second-largest bank failure in US history…
“As the bank grew to be the 16th largest in America, SVB invested their funds in long-term bonds when rates were near zero…when interest rates rose, those long-term bond prices fell, cratering their investments.
“On Wednesday, SVB announced that it suffered a $1.8 billion after-tax loss and urgently needed to raise more capital to address depositor concerns. The market reacted sharply and SVB lost over $160 billion dollars in value in 24 hours.
“As the stock fell, depositors moved quickly to withdraw money from the bank [and because] banks only carry a portion of depositors' money in cash – called a fractional reserve – SVB couldn't give depositors their money because it was held in their long-term bond investments that were no longer worth as much [and the] panicked withdrawal continued...
“So the Federal Deposit Insurance Corporation took over SVB…to get depositors access to their money by Monday, and because the bank's troubles posed a major risk to the financial system…
“SVB had $209 billion in assets and $175.4 billion in deposits at the time of failure, the FDIC said in a statement.”
If you read the above accurately, you will see that the entire crisis for SVB and Signature was caused by the rate hikes The Fed instituted to curb inflation; inflation that was caused by the mismanagement of interest rates by The Fed.
The Fed’s Accomplice
According to Consumerist.com, which gives a much more realistic explanation of how the FDIC works:
“...the Federal Deposit Insurance Corporation (FDIC) protects your money in deposit accounts at FDIC-insured institutions up to $250,000…
“[C]reated in 1933 after thousands of banks failed in the 1920s and early 1930s…[t]hey are an independent agency of the federal government but they get absolutely no funding from Congress. So where do they come up with the money? They get it in one of two ways:
Banks and thrift institutions pay premiums for the FDIC’s insurance coverage.
The FDIC invests those premiums in US Treasury securities.
“However, in reality, you’re really paying for that coverage. Much like how home sellers include the list price of real estate agent commissions into the sale price of a home, banks incorporate these special fees and insurance premiums into the interest rates they’re willing to offer on their deposit accounts…
“Fortunately, the FDIC is backed by the full faith and credit of the United States government…so even if they run out of cash, [The Fed] can just print some more!”
Perhaps now it makes more sense as to why The Fed and its accomplices in the financial sector despise cryptocurrency and the decentralized financial sphere so much. They can’t control it. They can’t print more of it and that means they can’t inflate it. They are being exposed as the grifters and monetary pirates that they are.
Do We Have The Intelligence To Move Forward?
The mainstream media complex and the politicians of “The Swamp” loved to demonize Ron Paul (the father of US Sen. Rand Paul, R-KY) because he had the unmitigated gall to expect Washington, DC to adhere to the limitations of the US Constitution; the enumerated and limited powers granted to the federal government by the American people via the ratification of the US Constitution.
In 2009, Paul wrote a book called End the Fed, in which he made a sound argument for dismantling the special interest protective apparatus that the deep-pocketed bankers of Jekyll Island created in The Fed.
It was a sound argument then, and it is a sound argument now. The difference between then and now is that there is a viable alternative to The Fed in the decentralized financial sphere; a space where banks, literally, become obsolete and we don’t have to pay them to use our own money!
If you do nothing else, please educate yourself on what the Federal Reserve is and how it has gamed the American people out of trillions of dollars, even as it has gifted our wealth to glad-handers and profiteers around the world through the globalists of the World Economic Forum via the United Nations, the World Bank, and the International Monetary Fund.
I implore you to watch the video embedded above. It is 29 minutes of content presented in animated form (it includes sarcasm for entertainment purposes), but its facts are solidly based on historic truth and the value of its education and information is priceless.
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