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25 Fast Facts About The Federal Reserve You Need To Know

September 15th, 2013

Federal reserveAs we approach the 100 year anniversary of the creation of the Federal Reserve, it is absolutely imperative that we get the American people to understand that the Fed is at the very heart of our economic problems.  It is a system of money that was created by the bankers and that operates for the benefit of the bankers.  The American people like to think that we have a “democratic system”, but there is nothing “democratic” about the Federal Reserve.  Unelected, unaccountable central planners from a private central bank run our financial system and manage our economy.  There is a reason why financial markets respond with a yawn when Barack Obama says something about the economy, but they swing wildly whenever Federal Reserve Chairman Ben Bernanke opens his mouth.  The Federal Reserve has far more power over the U.S. economy than anyone else does by a huge margin.  The Fed is the biggest Ponzi scheme in the history of the world, and if the American people truly understood how it really works, they would be screaming for it to be abolished immediately.  The following are 25 fast facts about the Federal Reserve that everyone should know…

#1 The greatest period of economic growth in U.S. history was when there was no central bank.

#2 The United States never had a persistent, ongoing problem with inflation until the Federal Reserve was created.  In the century before the Federal Reserve was created, the average annual rate of inflation was about half a percent.  In the century since the Federal Reserve was created, the average annual rate of inflation has beenabout 3.5 percent, and it would be even higher than that if the inflation numbers were not being so grossly manipulated.


#3 Even using the official numbers, the value of the U.S. dollar has declined by more than 95 percent since the Federal Reserve was created nearly 100 years ago.

#4 The secret November 1910 gathering at Jekyll Island, Georgia during which the plan for the Federal Reserve was hatched was attended by U.S. Senator Nelson W. Aldrich, Assistant Secretary of the Treasury Department A.P. Andrews and a whole host of representatives from the upper crust of the Wall Street banking establishment.

#5 In 1913, Congress was promised that if the Federal Reserve Act was passed that it would eliminate the business cycle.

#6 The following comes directly from the Fed’s official mission statement: “To provide the nation with a safer, more flexible, and more stable monetary and financial system. Over the years, its role in banking and the economy has expanded.”

#7 It was not an accident that a permanent income tax was also introduced the same year when the Federal Reserve system was established.  The whole idea was to transfer wealth from our pockets to the federal government and from the federal government to the bankers.

#8 Within 20 years of the creation of the Federal Reserve, the U.S. economy was plunged into the Great Depression.

#9 If you can believe it, there have been 10 different economic recessions since 1950.  The Federal Reserve created the “dotcom bubble”, the Federal Reserve created the “housing bubble” and now it has created the largest bond bubble in the history of the planet.

#10 According to an official government report, the Federal Reserve made 16.1 trillion dollars in secret loans to the big banks (NYSEARCA:XLF) during the last financial crisis.  The following is a list of loan recipients that was taken directly from page 131 of the report…

Citigroup - $2.513 trillion
Morgan Stanley - $2.041 trillion
Merrill Lynch - $1.949 trillion
Bank of America - $1.344 trillion
Barclays PLC - $868 billion
Bear Sterns - $853 billion
Goldman Sachs - $814 billion
Royal Bank of Scotland - $541 billion
JP Morgan Chase - $391 billion
Deutsche Bank - $354 billion
UBS - $287 billion
Credit Suisse - $262 billion
Lehman Brothers - $183 billion
Bank of Scotland - $181 billion
BNP Paribas - $175 billion
Wells Fargo - $159 billion
Dexia - $159 billion
Wachovia - $142 billion
Dresdner Bank - $135 billion
Societe Generale - $124 billion
“All Other Borrowers” - $2.639 trillion

#11 The Federal Reserve also paid those big banks $659.4 million in fees to help “administer” those secret loans.

#12 The Federal Reserve has created approximately 2.75 trillion dollars out of thin air and injected it into the financial system over the past five years.  This has allowed the stock market to soar to unprecedented heights, but it has also caused our financial system to become extremely unstable.

#13 We were told that the purpose of quantitative easing is to help “stimulate the economy”, but today the Federal Reserve is actually paying the big banks not to lend out 1.8 trillion dollars in “excess reserves” that they have parked at the Fed.

#14 Quantitative easing overwhelming benefits those that own stocks and other financial investments.  In other words, quantitative easing overwhelmingly favors the very wealthy.  Even Barack Obama has admitted that 95 percent of the income gains since he has been president have gone to the top one percent of income earners.

#15 The gap between the top one percent and the rest of the country is now the greatest that it has been since the 1920s.

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  1. Ben Bernanke
    September 17th, 2013 at 17:47 | #1

    Wait till tomorrow…

  2. Ben Bernanke
    September 17th, 2013 at 13:04 | #2

    @Gandalf

    You don’t get it!

  3. Gandalf
    September 17th, 2013 at 10:43 | #3

    Are you familiar with the Church of the Spaghetti Monster? You seem to be a founding member.

    Before the Fed, regular bank runs and financial crises were a chronic problem. Look to 1907 when one man (J.P. Morgan) bailed out the whole U.S. economy. You would prefer we go back to that?

  4. OhLookAnotherConsiracyTheorist
    September 17th, 2013 at 08:43 | #4

    @keskeg

    Absolutely this. 25 questionable “facts”. The author needs some lessons in history prior to spewing this garbage. Example, what prompted the Federal Reserve Act in the first place? Ever heard of the great depression? Here’s a fact for you, economies cannot and do not self regulate. Fiat systems are unsustainable. The Fed, and the banking system is no secret. It’s idiots like the author that get the less educated Americans all in a panic over complete nonsense. Don’t listen to this guy, visit your local Fed and ask questions (yes, they are open to the public).

  5. Johnathon
    September 17th, 2013 at 00:43 | #5

    Of course it’s opinionated and of course the headline reads as it does, don’t we know anything about advertising and psychology behind key words used in writing. C’mon people, read through the authors aggressive writing to slam the Fed, but don’t write off its substance, no pun intended. Through fractional reserve lending the central banks have created more debt and more economic havoc than ever before. They are putting the average working American in debt slavery, wake up!! “None are more hopelessly enslaved than those who falsely believe they are free” – Johann Wolfgang Von Goethe. The fed controls the money supply and sets interest rates, need I say more! “Give me control of a nations money and I care not who makes the laws” – Mayer Amschel Rothschild. Read up on the Rothschild dynasty. We have to drop our egos and start asking questions.

  6. rick
    September 16th, 2013 at 17:39 | #6

    Anyone can write anything on the internet.

    http://rationalwiki.org/wiki/Michael_T._Snyder

  7. LvM
    September 16th, 2013 at 14:31 | #7

    @Mike

    They were secret at the time. There was a partial audit of the Fed.

  8. Lauren
    September 16th, 2013 at 13:03 | #8

    “25 Facts You Need to Know”

    More like 25 opinions. Go home.

  9. emily
    September 16th, 2013 at 12:45 | #9

    Check your history facts. Having some sort of central bank may have been better than none. Out of 100 years of Fed control, the country has had 22 recessional years, including one depression. The 100 years before the Fed saw 44 recessions and six depressions.

  10. keskeg
    September 16th, 2013 at 10:18 | #10

    25 Fast facts? Maybe you should do some fact checking before you put that as your title.

    You should have titled this:

    “25 opinions about the Fed that are not quite accurate but it makes a better story to the public to get people to be against the Fed”

    My favorite fact was about “secret loans” made to these banks… if its in a report, pretty sure that is not secret. Love this.

  11. daffa108
    September 16th, 2013 at 09:52 | #11

    Fa Daf
    Federal reserve rewrote economics. If your salary is static and price go up you have inflation. But price are near static with less inflation say 1% with so much pumping of money. How is that possible against economic theory. The auto worker of detroit has three times more benefits than a non unionized worker. Detroit was killed. The salary of a auto worker is at 60% or below existed rates. If QE1,QE2,QE3 would have flooded US market than there would have been 25 % inflation. The money was allowed to be taken out by wall street bankers to play in the markets of BRIICS, PIIGS etc.

    These wall street bankers lost 40 % money in the depreciation engineered by European and other central bankers like Japan, China, Russia, Brazil, India. So in the end the QE money did not enter US market and wall street banks lost them else where.So no inflation.

    where else you can find a banker like Federal Resreve

  12. Mike
    September 16th, 2013 at 02:15 | #12

    @Mike
    Ok, I found out the secret.

    While the government did report on a weekly basis how much they were lending out, they didn’t say exactly who was getting the money. On the justification that telling people who is receiving large bailouts can cause investor panic.

    You’re going to mislead people, pretty much on purpose, into a distorted version of events.

  13. n/a
    September 16th, 2013 at 02:06 | #13

    wow

  14. Mike
    September 16th, 2013 at 02:05 | #14

    >According to an official government report, the Federal Reserve made 16.1 trillion dollars in secret loans

    How exactly is a secret if they write a report about it?

    What is this sensationalist crap?

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