Here is an interesting article/post on the Fed. It is 'anti-Fed' in its tone but it points out some of the interesting background of the formation.

 

The Federal Reserve - Its Origins, History & Current Strategy

 

On December 23, 1913, the Federal Reserve Act, also known as the Glass-Owen Bill, was passed. The Republican controlled Senate rammed the bill through when many members of the US Congress were home for the holiday.

 

The Federal Reserve System is an independent central bank. Although the President of the United States appoints the chairman of the Fed, and this appointment is approved by the United States Senate, the decisions of the Fed do not have to be ratified by the President, or anyone else in the executive branch of the United States government. Buried in the legislation was the granting of total power over the monetary policies of all US banks. A very curious statement is found in the original 1913 law. SEC. 30. The right to amend, alter, or repeal this Act is hereby expressly reserved. Reserved expressly to whom, or what? No definition is provided. This is the entire Section 30 statement!

 

The Federal Reserve was only given a corporate life of 20 years! Their time was up in 1933 Who was President at that time? Franklin. D. Roosevelt, of course. Somehow, the Federal Reserve's termination did not occur.

No Senator or Representative in Congress shall be a member of the Federal Reserve Board or an officer or a director of a Federal reserve bank.

 

Federal reserve banks, including the capital stock and surplus therein, and the Income derived therefrom shall be exempt from Federal, State, and local taxation, except taxes upon real estate.

 

The two principal Rothschild representatives in New York, J. P. Morgan Co., and Kuhn, Loeb & Co. were the firms which set up the Jekyll Island Conference at which the Federal Reserve Act was drafted, who directed the subsequent successful campaign to have the plan enacted into law by Congress, and who purchased the controlling amounts of stock in the Federal Reserve Bank of New York in 1914. These firms had their principal officers appointed to the Federal Reserve Board of Governors and the Federal Advisory Council in 1914. In 1914 a few families (blood or business related) owning controlling stock in existing banks (such as in New York City) caused those banks to purchase controlling shares in the Federal Reserve regional banks. Examination of the charts and text in the House Banking Committee Staff Report of August, 1976 and the current stockholders list of the 12 regional Federal Reserve Banks show this same family control.

 

The Federal Reserve will always debase the currency to take its cut, and guarantee that the government has a tax base available to feed its bureaucratic family. The government is a total slave of the Federal Reserve.

 

 

 

Another article on the creation of the Fed - the Jekyll island Conference:

 

Federal Reserve System, Jekyll island, History, Aldrich Plan, J. Pierpont Morgan, Historical, Dr. A. Piatt Andrew, Henry P. Davison, National City Bank, Frank A. Vanderlip, Kuhn, Loeb, Co., Paul M. Warburg, Nelson W. Aldrich

 

In the fall of 1907 the United States was in a recession, it's banking system lacked a lender of last resort mechanism, and an intricate network of directorships, loans, and collateral bonded the fate of many financial institutions together.

 

The secretary of the treasury George B. Cortelyou was eager to divert the situation and offered the New York bankers use of government funds to help prevent an economic disaster. President Theodore Roosevelt, while the panic of 1907 transpired, was on a hunting trip in Louisiana.

 

Ron Chernow in his book The Death of the Banker offers this account of the 1907 Panic, "In the following days, acting like a one-man Federal Reserve system, [J. Pierpont] Morgan [J. P. Morgan] decided which firms would fail and which survive.

 

The 1910 "duck hunt" on Jekyll Island included Senator Nelson Aldrich, his personal secretary Arthur Shelton, former Harvard University professor of economics Dr. A. Piatt Andrew, J.P. Morgan & Co. partner Henry P. Davison, National City Bank president Frank A. Vanderlip and Kuhn, Loeb, and Co. partner Paul M. Warburg. From the start the group proceeded covertly. They began by shunning the use of their last names and met quietly at Aldrich's private railway car in New Jersey. In 1916, B. C. Forbes discussed the Jekyll conference in his book Men Who Are Making America and illuminates, "To this day these financiers are Frank and Harry and Paul [and Piatt] to one another and the late Senator remained 'Nelson' to them until his death. Later [, following the Jekyll conference,] Benjamin Strong, Jr., was called into frequent consultation and he joined the 'First-Name Club' as 'Ben.'"

 

The Jekyll Island conference offered a secluded location to discuss banking ideas and enabled the development of a plan that eventually became the Federal Reserve Banking System. The Federal Reserve System is the name given to the twelve central banks regulating America's banking industry and it insures that depositors will not lose their money in the event of funds mismanagement from an accredited bank.

[Note: The creation of the Federal Reserve was supposed to keep the 2008 melt down from happening.]

 

For years members of the Jekyll Island Club would recount the story of the secret meeting and by the 1930s the narrative was considered a club tradition. The conference's solution to America's banking problems called for the creation of a central bank. Although Congress did not pass the reform bill submitted by Senator Aldrich, it did approve a similar proposal in 1913 called the Federal Reserve Act. The Federal Reserve System of today mirrors in essence the plan developed on Jekyll Island in 1910.

 

Now see...Jekyll Island is something I can talk about! I love that place and the history is FACINATING!

Now see...Jekyll Island is something I can talk about! I love that place and the history is FACINATING!

 

Apparently it is home of the birth place of 'modern banking'.

 

You sure J. P. is not a great uncle?

 

Apparently it is home of the birth place of 'modern banking'.

 

You sure J. P. is not a great uncle?

 

More likely, my great grandfather cleaned his boots. :lol:

I'm one of the 3/4. I neither have the income to put much energy into understanding , nor the time to fret about something I can't control. I spend my energy just trying to prepare for the worst, protecting my income the best I can and spending ad wisely as I can. My only investments are in my 401K, and frankly, I only contribute because I want to have something to leave my kids when I die....which I will likely do on my way to or from work, or at my desk. :lol:

Just hope your 401K is still there. Just think of all those that have paid into social security all these years only to find out they are probably not going to see a penny. Sorry but all the 40, 50, and a few 60 something's , all that money that was taken out of your paycheck all these years for social security and your later years is now being used for Obama care and the growing government. Always felt that if I earned it I should have been able to save it on my own. Who knows, maybe I could have made a huge donation to a charity, or start a new business and left my children more so they could chase their dreams.:idunno:

Just hope your 401K is still there. Just think of all those that have paid into social security all these years only to find out they are probably not going to see a penny. Sorry but all the 40, 50, and a few 60 something's , all that money that was taken out of your paycheck all these years for social security and your later years is now being used for Obama care and the growing government. Always felt that if I earned it I should have been able to save it on my own. Who knows, maybe I could have made a huge donation to a charity, or start a new business and left my children more so they could chase their dreams.:idunno:

 

Interesting Henry, came on here just to see if my 401K ,would turn into a 201K OVERNIGHT. Would I be better off to drain my 401K , even with the penalty and taxes, or wait and have the government drain it for me. leaving me nothing? (Serious question).

Just hope your 401K is still there. Just think of all those that have paid into social security all these years only to find out they are probably not going to see a penny. Sorry but all the 40' date=' 50, and a few 60 something's , all that money that was taken out of your paycheck all these years for social security and your later years is now being used for Obama care and the growing government. Always felt that if I earned it I should have been able to save it on my own. Who knows, maybe I could have made a huge donation to a charity, or start a new business and left my children more so they could chase their dreams.:idunno:[/quote']

 

The QE & Social Security are connected? Tell me how that works?

The QE & Social Security are connected? Tell me how that works?

 

If the borrowing power (in terms of bonds purchased by the Federal Reserve) of the government halts, the cash flow out of the government must halt. The largest out going cash flow is Social Security.

 

This has been known as 'austerity programs' in Europe.