What The Federal Reserve Does
As the central bank of the United States, the Federal Reserve has three key functions which revolve around managing the money supply:
- To adjust base interest rates
- To print and release new bank notes
- To remove existing notes from circulation
By controlling the amount of money in circulation, the Federal Reserve can make US currency either more or less valuable, thereby influencing the country’s economy on a multitude of levels.
How The Federal Reserve Was Founded
In 1907, rumours emerged that caused the latest of a string of large-scale bank runs. Fears of an economic depression shattered the confidence of the American people, who soon called for bank reforms.
A group of wealthy businessmen – led by J P Morgan, Paul Warburg and John D Rockefeller – intervened to pave the way for the establishment of a private central bank. With their connections, they soon put a banker-controlled plan to President Woodrow Wilson.
In a decision that would later come to haunt him, President Wilson signed the Federal Reserve Act into law. In doing so, he effectively placed control of the US economy squarely in the hands of the private bankers, who would go on to create massive amounts of credit – backed by absolutely nothing.
They did this by printing new bank notes and lending them with added interest to the Government for redistribution. This means that every single dollar in circulation has a debt attached, payable to the creators of the Federal Reserve. Today the national debt is over $9.2 trillion.
In 1919, President Wilson expressed his profound regret over his decision, stating:
“I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation is controlled by its system of credit. Our system of credit is concentrated. The growth of the nation, therefore, and all our activities are in the hands of a few men.” ¹
The Federal Income Tax
In order to obtain repayments on this debt system, Morgan and his crew created a Federal Income Tax. This new tax was unconstitutional, because it was not apportioned (ie, equal for every person) and in fact was fraudulently passed in Congress.
This means that there is no law in place that dictates the average American working for a private business must pay Income Tax. This was even cited in a recent court case:
“If you… examined [The 16th Amendment] carefully, you would find that a sufficient number of states never ratified that amendment.” ²
US District Court Judge, James C Fox, 2003
In fact, in 1985, President Ronald Reagan created the Grace Commission to investigate where Income Tax money was spent by the Government each year. It found that 100% was absorbed by interest on Federal debt.³
That means that not a single penny collected from Federal Income Tax is spent on services provided by the Government. Such services have always arisen from other direct taxes, such as gasoline tax which pays for new roads.³
In the fiscal 2005 year, the Federal Income Tax on Americans’ labour came to $927.2 billion.³ That is more than three times the legal Corporate Income Tax collected that same year.
Today, as reported in the Federal Reserve's annual audit, there are now trillions of dollars missing – which it describes as “undocumentable adjustments”. Otherwise seen as a way of redistributing the wealth.
The Internal Revenue Service is yet to provide an explanation for the missing law of Federal Income Tax. Some Americans have already stopped paying what appears to be a fraudulent tax – and with rising awareness it is only a matter of time before a formal explanation will be demanded by the people.
Sources
1. Federal Debt Relief System: The Birth of The Federal Reserve
3. America: Freedom to Fascism
Further Viewing
2008 Presidential Candidate Ron Paul Talks on The Federal Reserve
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