If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks…will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered… The issuing power should be taken from the banks and restored to the people, to whom it properly belongs. President, Thomas Jefferson

Have you ever wondered how the Federal Reserve works, who runs it and what function it serves? Did you know that the Federal Reserve is not a government agency, but a privately held company? Do you know who owns the Federal Reserve?

Brief History

Prior to the creation of the current version of the Federal Reserve System in 1913, banks were largely unregulated and unchartered. Private bankers controlled the economy of local communities because there were no regulations or policy in regards to loan terms, usury laws or reserve requirements. Banks were a patch work of unaffiliated institutions scattered across the country with no central policy. The creation of a central banking system had failed twice before. In 1791 Congress established the First Bank of The United States. After the initial 20 year charter expired Congress failed to reinstate the central bank, reverting to the ‘free banking’ system that left banks unregulated and its lending provisions subject only to market forces (supply and demand).  In 1816 a second central reserve bank was mandated by Congress. When Andrew Jackson was elected President in 1828 he vowed to abolish the institution and succeeded in doing so in 1836.

Private Banking Cartel 

The creation of the ’Fed’ in 1913 during the Woodrow Wilson administration was very controversial. Wilson was under enormous political pressure. The banking monopolies publically pretended to be opposed to the act, while spending millions of dollars to promote the new system politically behind the scenes. Wilson signed the legislation on December 22nd, 1913 during the Christmas break period for Congress.

The act created the Federal Reserve System, a name purposely selected by the banking cartel and bank rolled politicians. Choosing a name that led people to believe that this was a government regulated agency misrepresented the facts to the American people and provided credibility to the new system. In reality the act created a private, for profit banking corporation that is controlled by an international banking cartel. Here is a list of the families that own the Federal Reserve System:

• Rothschild Banks of London and Berlin
• Lazard Brothers Bank of Paris
• Israel Moses Sieff Banks of Italy
• Warburg Bank of Hamburg, Germany and Amsterdam
• Kuhn Loeb Bank of New York
• Lehman Brothers Bank of New York
• JP Morgan
• Goldman Sachs Bank of New York
• Chase Manhattan Bank of New York (Controlled By the Rockefeller Family) 

The stated purpose of creating the Federal Reserve was to unify and supervise the entire banking system, control the expansion or contraction of currency, and regulate the flow of money to the commercial banks through the establishment of 12 Federal Reserve Banks supervised by the Federal Reserve System.  

The Federal Reserve System (corporation) or banking cartel creates money out of nothing, lends it to the Federal Government and commercial banks, then charges interest on those ‘loans’.  The US Treasury only prints money when the ‘Fed’ (bank cartel) tells it to print. Taxpayers repay the government loans (national debt) and consumers repay lenders (loans) in the form of principal and interest payments, a large portion of which goes to the members of the banking cartel that still exists today. Money created from nothing!!!

“It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning. The one aim of these financiers is world control by the creati0n of inextinguishable debts”.  Henry Ford

Stay tuned for part 2.

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