What is the Federal Reserve?

Men who came to be known as “The Jekyll Island Club” represented one-sixth of the world’s wealth. Meeting at one of the most prestigious sites in America at the time they plotted the establishment of a central bank which they would control. The strategy of the elitist financiers involved the future of money and credit in America. Efforts to prevent the concept of a central national bank were begun by Thomas Jefferson and later championed by Andrew Jackson.

Those gathered on Jekyll were officially known as the National Monetary Commission (NMC).

Banks at the time were looked upon with suspicion. The NMC purposed to avoid the stigma of a bank by using the title “Federal Reserve System.” Their recommendation removed from Congress control given Congress by Article 1, Sec. 8 Par. 5 of the Constitution which states, “the power to coin money and regulate the value thereof.” The action of the NMC would eventually mean their seven member board which would control the nation’s money and credit were to be appointed by the President and approved by Congress.

President Woodrow Wilson and the Congress elected in 1912, got the central bank legislation passed. This action ultimate resulted in the Federal Reserve being established.

Since that time one of the sidebar effects is the Federal Reserve acts to make the President look good. That is not a new thing.

Recently the Federal Reserve, which is an independent bank, announced they will purchase $40,000,000 of U.S. Treasury Bonds a month to stimulate the economy. Where do they get the money? They exercise the authority given them as an eventual outgrowth of the action of “Jekyll Island Club.” They print it. They have the power to issue money and regulate the value thereof. This is power formerly granted only to Congress.

Boosting the economy sounds good, but what actually does it do?

It devalues the dollar by creating more dollars. That sounds abstract, but what it means is it devalues your savings account, your IRA, the value of your home, any other assets, and the purchasing power of the dollar.

Four years after the signing of our Constitution, a federal law was passed making it a capital crime to do anything to devalue the dollar. That law is no longer in force, but the fact it existed indicates how serious the Congress of that day thought it was to devalue the dollar.

Thomas Jefferson in 1791 warned: “If the American people ever allow the banks to control issuance of their currency, first by inflation and then by deflation, the banks and corporations that grow up around them will deprive the people of all property until their children will wake up homeless on the continent their father occupied.”

The term “banks” is used in this sense not of your local bank, but the central bank now known as “The Federal Reserve Bank.”

The Federal Reserve is more complicated than space will allow for explaining. However, it is considered an independent bank because its decisions do not have to be ratified by the executive or legislative bodies of government.

Members are appointed by the President and traditionally their actions tend to make the President look good. Isn’t it interesting that just before this election they proposed to take action to stimulate the economy. It hasn’t.