Read Online Lies the government told you by Andrew P. Napolitano - Free Book Online
Authors: Andrew P. Napolitano
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hold the cash reserves of the system, supply currency to member banks, and act as the fiscal agents of the government; each is run by a regional president and regional bank boards elected by member banks.
Finally, there is the Open Market Committee, which implements the monetary policy provided by the Board of Governors. It does this through the manipulation of the money supply via the purchase or sale of government securities. In essence, when the Fed buys government securities, money is made and interest rates fall; when it sells government securities, the money supply is reduced and interest rates rise. The committee is made up of the board as well as five of the regional directors. Bond dealers who earn large commissions on every transaction handle the purchases and sales of the securities.
The most common claim about the Federal Reserve is that it is accountable to the federal government because it is required to report to Congress twice a year regarding its activities. But what the chairman reports and what actually occurs are very different. Because the government has no power over the Federal Reserve, under current law the Federal Reserve cannot be audited. As well, its decisions do not require ratification by anyone in the executive or legislative branches of the government. Each time Congress has requested that the Federal Reserve submit to a voluntary audit, only refusals have been received. The Chairman of the Fed is therefore free to say anything he wants to Congress, and there is no way to verify the truth of his statements.
The monetary policy decisions made by the Fed are made at secret meetings, and Congress, as well as the public, are only made privy to brief reports released weeks later. Any transcripts made of the deliberations are destroyed. Every other government agency, even the CIA and NSA, are required by law to maintain all documents and transcripts of their activities. 13 Since the Federal Reserve is not a government agency, these laws do not apply.
I have said this many times on air and elsewhere, and even the Fed’s supporters agree with me on this: The job of the CIA is to steal and to keep secrets; yet, we know far more about the CIA than we do about the Federal Reserve .
The Federal Reserve is a misnomer. As an initial matter, there is nothing “federal” about it. The government does not own a single share of stock in the Federal Reserve. A Chairman of the House Banking Committee (now known as the House Financial Services Committee) even once noted that whether the Federal Reserve worked with the government’s fiscal policy or chose another direction was based mainly on the Federal Reserve Chairman’s mood. Considering that the United States dollar is the currency of the world and the Federal Reserve controls the dollar, one could argue that the Chairman of the Federal Reserve is more powerful than the President. Money is power, and economic and political events around the world can be manipulated through U.S. monetary policy.
Not only is the word Federal in “Federal Reserve” a government lie, but so is the word Reserve . A reserve implies, and many people assume, that money is being stored away to use in a crisis, and that gold and other hard money are stored in order to ensure that all debts can be paid. This is not the case. Though original notes issued by the Federal Reserve stated, “This note is legal tender for all debts public and private, and is redeemable in lawful money at the United States treasury or at any Federal Reserve Bank,” this was changed by a 1963 amendment. At that time the Fed began to issue its first series of notes without the redemption promise, while taking notes with the redemption promise out of circulation.
The notes now read, “This note is legal tender for all debts public and private.” By removing the promise, “. . . and is redeemable in lawful money . . .” the Federal Reserve, with the support of the federal government, eliminated a
Finally, there is the Open Market Committee, which implements the monetary policy provided by the Board of Governors. It does this through the manipulation of the money supply via the purchase or sale of government securities. In essence, when the Fed buys government securities, money is made and interest rates fall; when it sells government securities, the money supply is reduced and interest rates rise. The committee is made up of the board as well as five of the regional directors. Bond dealers who earn large commissions on every transaction handle the purchases and sales of the securities.
The most common claim about the Federal Reserve is that it is accountable to the federal government because it is required to report to Congress twice a year regarding its activities. But what the chairman reports and what actually occurs are very different. Because the government has no power over the Federal Reserve, under current law the Federal Reserve cannot be audited. As well, its decisions do not require ratification by anyone in the executive or legislative branches of the government. Each time Congress has requested that the Federal Reserve submit to a voluntary audit, only refusals have been received. The Chairman of the Fed is therefore free to say anything he wants to Congress, and there is no way to verify the truth of his statements.
The monetary policy decisions made by the Fed are made at secret meetings, and Congress, as well as the public, are only made privy to brief reports released weeks later. Any transcripts made of the deliberations are destroyed. Every other government agency, even the CIA and NSA, are required by law to maintain all documents and transcripts of their activities. 13 Since the Federal Reserve is not a government agency, these laws do not apply.
I have said this many times on air and elsewhere, and even the Fed’s supporters agree with me on this: The job of the CIA is to steal and to keep secrets; yet, we know far more about the CIA than we do about the Federal Reserve .
The Federal Reserve is a misnomer. As an initial matter, there is nothing “federal” about it. The government does not own a single share of stock in the Federal Reserve. A Chairman of the House Banking Committee (now known as the House Financial Services Committee) even once noted that whether the Federal Reserve worked with the government’s fiscal policy or chose another direction was based mainly on the Federal Reserve Chairman’s mood. Considering that the United States dollar is the currency of the world and the Federal Reserve controls the dollar, one could argue that the Chairman of the Federal Reserve is more powerful than the President. Money is power, and economic and political events around the world can be manipulated through U.S. monetary policy.
Not only is the word Federal in “Federal Reserve” a government lie, but so is the word Reserve . A reserve implies, and many people assume, that money is being stored away to use in a crisis, and that gold and other hard money are stored in order to ensure that all debts can be paid. This is not the case. Though original notes issued by the Federal Reserve stated, “This note is legal tender for all debts public and private, and is redeemable in lawful money at the United States treasury or at any Federal Reserve Bank,” this was changed by a 1963 amendment. At that time the Fed began to issue its first series of notes without the redemption promise, while taking notes with the redemption promise out of circulation.
The notes now read, “This note is legal tender for all debts public and private.” By removing the promise, “. . . and is redeemable in lawful money . . .” the Federal Reserve, with the support of the federal government, eliminated a
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