February 28th, 2015
in Op Ed
by Shah Gilani, Money Morning
The Federal Reserve System has a very dark history.
I'm talking about a history of murder.
Maybe you didn't know, but there's a theory that the Fed ordered John F. Kennedy's assassination.
Today, I'll share with you the facts behind that theory.
By Any Other Name
First of all, "Federal Reserve System" is a misleading name.
A group of private bankers, who crafted the Fed, dubbed it that in 1910.
They chose "Federal" because it implies the system is a federal institution.
It never was - and it isn't today. It's private.
They chose "Reserve" to imply that the system would be rich in "reserves" and, therefore, supersafe. The Fed mandates "reserve requirements" for the United States' banks but has a zero reserve requirement for itself.
And those bankers, back in 1910, chose "System" because they agreed to never call it a "bank." But that's exactly what it is.
The Federal Reserve System is a privately held (by banks as shareholders) bank.
It's the United States' central bank.
Beyond comprehension, beyond what's written in the U.S. Constitution about Congress's right to coin money and issue bills of credit, the Federal Reserve owns the money of the United States.
You read that right.
When President Woodrow Wilson signed the Federal Reserve Act into law on Dec. 23, 1913, the Fed was granted the power to control America's money - to actually issue it and own it. They got around the Constitution by having the U.S. Treasury actually print and coin their money.
Look at any bill in your wallet, right now, get one out. Right there on the front of every bill, on the top, it says "Federal Reserve Note." A "note" is a loan. All the money in your hand is on loan, from the Fed.
The BIG picture works like this.
The government can't pay for what it spends, so it borrows. It borrows by issuing Treasury bills, notes and bonds. The Federal Reserve buys a lot of that debt (most of it) with the money it tells the Treasury to print for it. The Treasury then pays interest on its debt instruments.
So the Fed collects interest on money it made up out of thin air. A very neat trick, but that's how banks work, folks.
Where does the interest come from? From taxes we pay. And because the Federal Reserve was going to buy the government's debt from Day 1, those bankers wanted to make sure the government would be able to pay the interest it promised.
So, also in 1913 - surprise, surprise - Congress votes something new into law: the income tax.
Welcome to the new slavery, only this time it's the Federal Reserve that's our master.
Fast-forward to June 4, 1963.
President John F. Kennedy issued Executive Order 11110, which empowered JFK with:
"The authority vested in the President by paragraph (b) of section 43 of the Act of May 12, 1933, as amended (31 U.S.C. 821(b)), to issue silver certificates against any silver bullion, silver, or standard silver dollars in the Treasury not then held for redemption of any outstanding silver certificates, to prescribe the denominations of such silver certificates, and to coin standard silver dollars and subsidiary silver currency for their redemption."
In other words, Kennedy, by executive order, created the authority to print money.
Some conspiracy theorists believe the president was assassinated because he directly challenged the Fed's sole authority to issue money.
Is that possible? If you believe in conspiracy theories surrounding the Kennedy assassination, anything's possible.
I don't believe the "lone gunman" theory.
But I also don't believe the Fed had JFK killed.
The president gave his Treasury the right to print and issue silver certificates in lieu of having people come with their other dollars and coins in order to redeem them for actual silver. Instead, they would get "silver certificates."
However, Jim Marrs, in his 1989 book, Crossfire:
The Plot That Killed Kennedy, postulates that Executive Order 11110 was Kennedy's opening salvo in what would be a battle with the Fed for control of the country's money.
What isn't a theory is the fact that the Federal Reserve Act murdered the Constitution by running over it. It gave the Fed the right to own America's money
And then it back up over the Constitution again, by having the Treasury physically print and coin the Fed's money to make it look Constitutional.
The Fed, right out of the gate, murdered U.S. citizens. It forever enslaved them through a federal income tax to pay interest to the Federal Reserve Bank for so graciously printing all the money any and every profligate government would ever need to borrow.
The Fed murdered the stock market in 1929. It let speculators borrow insane amounts of easy money to bet on stocks that had been "watered-down" by the banksters who mostly controlled the markets.
Then the Fed murdered the economy by causing the Great Depression with its failed monetary policies. Just ask Ben Bernanke - he knows.
The Fed murdered free-market capitalism and replaced it with Soviet-style central planning in 1977. That's when it wrangled from the incompetent, panicked hands of a sycophantic Congress the Fed's now infamous "dual mandate."
What's the dual mandate? It's the Fed's second mandate. The first is the Fed's duty to keep prices stable and long-term interest rates moderate.
The second mandate, the one delivered in 1977, is to "promote effectively the goals of maximum employment." In other words, the Fed is supposed to run the economy as if it were the Politburo.
The Fed murdered the economy again in 2008. But you know that.
And it's killing us all now.
There's no fiscal responsibility anywhere because everything's in the Fed's hands. There's not even any trickle-down economics anymore because the Fed's "stimulus" policies, also known as Quackatative Euphoria, has only benefited the 1% who own all the assets that have gone up.
And the Fed just keeps pumping markets higher and higher. The Fed hopes to help addicted speculators come down easy as it weans them from heroin onto methadone, and then down to Xanax, so no one feels the fall from Dow 30,000, or wherever it goes.
No, we don't need to "audit the Fed."
We need to kill it and bury it an unmarked grave.
P.S. I encourage you all to "like" and "follow" me on Facebook and Twitter. Once you're there, we'll work together to uncover Wall Street's latest debaucheries - and then we'll bank some sky-high profits.