Actions of the Federal Reserve Cannot Be Overruled By Government Entities

by | Jan 24, 2011 | Headline News | 24 comments

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    The Federal Reserve is no more a federal agency than Federal Express, though the government has granted them a (dot)gov domain to keep alive the perception that they act in the interests of the people of the United States.

    What many people may not understand is that The Federal Reserve is like any other corporation. They are in the business of making money, and in the case of the Fed, they are actually the people that make the money.

    Former Chairman of The Federal Reserve Alan Greenspan makes it abundantly clear that the Federal Reserve really doesn’t have to do anything the government asks them to do. As an independent agency, and one perceived by the populace to be another arm of the government, they are, for all intents and purposes, above the law:

    (Video follows excerpts and commentary)

    The Federal Reserve is an independent agency, and that means basically, that there is no other agency of government that which can overrule actions that we take.

    So long as that is in place and there is no evidence the administration or the Congress or anybody else is requesting that we do things other than what we think is the appropriate thing, then what the relationships are don’t, frankly, matter.

    So, basically the Federal Reserve has unrestricted power and control over our currency and monetary policy.

    We the people have absolutely no say in what they do, nor are Fed officials held to account for any of their actions, because they simply do not fall under any sort of government oversight.

    When the people of a nation hand power over their currency to a secretive banking organization owned and operated by the largest financial institutions in the Western world, it is a recipe for disaster.

    Our founders warned us that this day may come. Unfortunately no one heeded those warnings, and now the predictions of former President Thomas Jefferson may very well come to pass:

    ‘If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation the banks and corporations that grow up around them will deprive the people of all property until their children wake up homeless on the continent their fathers conquered.’

    We’ve talked about an inflationary destruction of wealth and commerce in the United States before. One doesn’t need to be a modern day economist or Harvard grad to understand the ramifications of the monetary policies engaged in by the Fed.

    Thomas Jefferson saw this one coming 200 years ago.

    Watch Alan Greenspan discuss The Federal Reserve’s unrestricted power to do whatever they like:

    Hat tip The Daily Bail

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      24 Comments

      1. Anonymous

        I’m getting hard of hearing.

      2. michelle

        so we can just get rid of them – fire them?

        Congress says “Fed – take a hike, we’re going to make our own currency again and your stuff is now null and void”

        I like that idea.

      3. apache

        the federal reserve is the only american  profit-making  privately owned corporation that pays absolutely no state nor federal income tax  -   therefore, there will never be any no pesky little tax forms available for examination or subpoena.

        the fedreal reserve is owned by;

        rothschilds of berlin and london
        lazard brothers of paris
        israel moses seif of italy
        kuhn, loeb and warburg of germany
        rockefeller family of america.

        the founders of the federal reserve stated it was formed to insure the stability of the dollar.  since the federal reserve was created 100 years ago a dollar’s worth of purchasing power has degenerated to 3 cents.

      4. wimpy

        presdent kennedy was in the process having “united states notes” printed to compete with federal reserve notes just before he was assassinated.

      5. Anonymous

        So did four other Presidents with one attempt.

      6. egore

        Yeah, and we can get rid of them any time we want to…..except any president who starts talking that way gets wacked.

      7. James Woroble Jr

        All this means is that America’s financial Sanhedrin, aka the Federal Reserve,  has foolishly and arrogantly positioned itself to not be remedied by civilized means, but by the rope, the guillotine or the firing squad. For, one immunity the Fed is unable to procure for itself is that of history.


      8. GMAFB

        Get those crisp $10 Fraudulent Reserve notes while they’re hot (put’m in yer #10 cans)!  This sucker is going down, so if you haven’t stored beans bullets and band aids, you just haven’t been paying attention!  You need some silver too…yea, yea I know you can’t eat it, but some day in the future you could buy a few acres of fertile land with it and use those seeds you’ve (hopefully) been storing — then you can eat it.

        GMAFB – no apologies extended or implied!

      9. Durango Kidd

        SHTF Times expressed its opinion that Congress would be attacked months ago. (“Where In The World Is Robspierre?”; “Predictions: 2011”)

        Its most recent post anticipates the termination of a gangster bankster with predjudice, and recommends they tighten their security; because it expects a major bankster CEO to get whacked!

      10. From the Sheople

        The following is the mentality of the sheople…

        Really!?  Oh well…I don’t care.  What’s on TV.  Whose on American Idol.  Just as long as they don’t mess with TV or ho hos I’m ok with it.  Who cares.  The rich get richer and the poor get poorer.  (or watch tv)

        Folks face it…it’s over.  Give up on trying to save this country.  Focus your energy on planning for your kids.  Stock metals, tools and such.  When the wealth transfer takes place…take your metal…sell it and buy a shitload of rental real estate…then all the TV slaves will have to pay you rent.  Let them live dumb and blind.   You can have your very own rent slaves for your children to suck of.  So you better keep stocking metals…when hyperinflation hits…you’ll be glad you did and in time…you’ll have many to pay you rent.  I have a couple that lives upstairs that pay me $100k every ten years.  Love it.  Best game in town.  Read RICH DAD’S GUIDE TO INVESTING IN GOLD AND SILVER.   If you want to own real estate…buy metals first and wait.  You’ll see.  I already doubled my money in 18 months. 

      11. mushroom

        <yawn>…<yawn>…(an expression of boredom)

        ACHTUNG GFMAB.

        i realize you are searching for a tactful and painless way of apologizing to me for the error of your ways.  i begin to sense you realize after reading the wisdomof my proposals that your reliance on bullets, beans and band-aids is foolish in the modern world of sophisticated  economics and that there is, indeed, a place in any plan for new crisp uncirculated ten dollar bills in #10 coin repositories,
         

      12. Anonymous

        I have a half sister and she is rich!

      13. clark

        SHTFPLAN said, “Actions of the Federal Reserve Cannot Be Overruled By Government Entities”

        Sure they can, the goberment can vote to End The Fed at any time.
        But they won’t do that because they don’t want to, they benefit from keeping things just the way they are. Can you say, Ponzi scheme?

        Karl Denninger said, “Independent monetary authority my ass.

        Function follows form…”

        http://market-ticker.org/akcs-www?post=178000

        Tesla said, “In essence, they’re “taking out a loan” from the Treasury rather than give Treasury “capital”, whatever it is they consider capital these days anyway.

        So we have this circle jerk going on where Treasury issues debt, the Fed buys it back in a POMO, then the Fed “borrows” money from the Treasury. And on, and on, and on.”

        Davepowers replies, “Yes, exactly. The entire year of FED activity for 2010 can be summed up thusly. The FED balance sheet expands by $194 billion due to US treasury paper purchases, all neatly paid for by a $194 billion loan from the Treasury, who sold paper to raise it.

        Ironically, the 2010 balance sheet showing this was attached to the FED’s Jan. 6th accounting policy change annoucment.”

        http://market-ticker.org/akcs-www?post=178000&page=5

      14. Joerocker

        congress stands by and allows the fed to continue screwing the American people. TREASON !

      15. the girlfriend

        The Government was flat broke in 1933, and hasn’t come up for air since. Your tax dollars are going to pay the interest on the money the government has borrowed all these years. And now it’s 14 trillion, and our taxes aren’t even covering the interest anymore. Now the colored folks got some company, all 300 million of us and our kids,grand kids…… Oust the government….TREASON!!!!! It’s blantiantly clear whose “side” their on, and it’s not “WE THE PEOPLE’S”

      16. clark

        “A common misconception is that the Fed is completely independent of political pressure…”

        http://www.lewrockwell.com/paul/paul561.html

        “Make no mistake: the Fed is not truly independent of political pressure. Its chair is appointed by the president, and it is a creature of Congress. Congress has a duty, albeit a neglected one, to exercise oversight of the Fed…”

        http://www.lewrockwell.com/paul/paul716.html

        “…In my written statement, I noted that the Fed is indeed independent in the sense that it can make trillions of dollars available to unknown friends on unknown terms. I then wrote that I couldn’t imagine any self-respecting American hesitating for a moment to challenge that kind of independence. In my oral remarks, after “self-respecting American” I added the words “who isn’t bought and paid for…”

        http://www.lewrockwell.com/woods/woods124.html

        “The more that the FED becomes engaged in the government’s fiscal policies and debt management, and the more that the FED depends on Treasury financing, the greater the risk that the FED is unable to disengage from the government. The greater becomes the risk that it will continue and expand its credit activities at the government’s behest or pressure…”

        “The FED changed its basic nature when it chose to make loans to specific entities, rather than providing general credit to the banking system. It became a fixed income fund. It replaced the capital market. It allocated credit. This too is a kind of fiscal function practiced by governments that wish to control the economy’s financing.

        All told, the FED has changed from a largely monetary institution to a monetary and fiscal institution that is linked to the Congress and the Treasury, i.e., to the government. The FED was never completely independent, of course. It was a private-public institution, but one whose activities were mostly monetary (apart from the period of the Accord). Now its activities are more in the public domain, more fiscal, and more governmental. They are more under the influence of government. That has historically been a situation that created higher inflation and sometimes hyperinflation.” – An opinion of Michael S. Rozeff, retired Professor of Finance.

        http://www.lewrockwell.com/rozeff/rozeff303.html

        If you want the best and clearest analysis of the fraudulent and destructive system known as fractional reserve banking, read the book by the Austrian School’s free market economist, Murray Rothbard: “The Mystery of Banking.” It’s posted free on-line.

      17. GMAFB

        <HA>…<HA>…(expression of  ROTFLMFAO)

        SLOWLYJUST4U musheadroom

        Apparently you now inhale in addition to swallowing the  basidiomycetes and the medium in which they are grown.  Unfortunately, I sense no improvement in your comprehension of the English language when advised — This sucker is going down.  Even your illustrious idol (one of your favorite ivy league boys) of the Treasury — Turbo Timmy Geithner — is defecating in his undies in fear that CONgress won’t pass his debt ceiling increase request.

        S..L..O..W..L..Y now — because I know you haven’t been paying attention — “Beans, bullets and band aids (with some silver) is what you will need to store in #10 cans…you can still use those crispy ones for TP, so don’t throw them away.  Instead, trade them while you still have time.

        <img src=”http://media.industrygamers.com/galleries/71/angrymob.jpg” height=”255″ width=”350″>

        GMAFB — No apologies intended, inferred or implied…

      18. Durango Kidd

        Clark: More FUNDAMENTAL errors. 🙂 Read what you copy and paste. First you quote lew rockwell as saying the FED is NOT Independent of the Government. That is false. They do what they want, when they want, by consensus of the FED Governors.

        When their lips move they are lying and any “political pressure” that is perceived by anyone is merely projected upon them by “mainstream economists” that do not understand reality. The FED does what it wants.

        Second, according to you, LR says the FED “depends” upon Treasury financing. The REVERSE is true. The Treasury depends upon the FED to finance its offerings, or purchase them.

        I am not going to debate LR through you as you have probably misrepresented his opinion with your copy and paste job. Thats YOUR M.O.

        If you don’t want the messenger killed with the message, find a new guru, because YOU are going to take the hit! NO ONE on this site should look to YOU for information on economics, finance, or banking; no matter who you quote.

      19. clark

        … Thus proclaims the all-knowing, all-seeing Durango Kidd.

        You obviously *really* don’t like non-mainstream economist.

        Because you don’t read links, you seem to be unaware that The Chairman of the Subcommittee on Domestic Monetary Policy and Technology owns this quote:

        “A common misconception is that the Fed is completely independent of political pressure…”

        But of course, Durango Kidd knows better than he does… and finance professors, and everyone else for that matter.

        I don’t see where I’ve quoted Lew Rockwell anywhere on this thread, funny that. Is that whatchya call a fundamental error on your part?

      20. Durango Kidd

        Clark: I definitely know better than you and you tried to make this argument before against me with Dr. North’s work. At that time I told you the “good doctor must have missed something along the way.”

        No, he didn’t miss anything, It turns out that you totally misrepresented his article, remember? How do you manage to show your face around here after THAT?

        Have you NO shame or embarassment?

      21. clark

        Well let’s just hash this out now then. I found the original mistake of yours (a.k.a. fundamental error) that is the basis for your incorrect assumption that I quoted anyone out of context:

        clark
        December 26th, 2010 at 1:13 am
        “Here are some choice quotes from Gary North [mine in brackets] that seem to show how money creation – and therefore hyper-inflation – Is a process controlled by the government:…”

        Durango Kidd
        December 26th, 2010 at 6:20 pm
        “…Clark: Whoever is responsible for the quote below does not understand the banking system in the USA at all.
        “Bernanke has repeatedly said that the FED will unwind, but I am unaware of any explanation of how, exactly, the FED will accomplish this feat…”

        clark
        December 26th, 2010 at 7:49 pm
        “Durango Kidd said, “The Board of Governors of the Federal Reserve is a government body charged with overseeing the FED,”

        Which means it’s Not a private cabal.

        Dr. Gary North said that quote Durango Kidd, to say he, “does not understand the banking system in the USA at all” is very laughable. Perhaps you misunderstood.

        “The FED insists that someday, it will unwind. It refuses to say when. It refuses to say how. It refuses to comment on what the results will be.”

        Here is the article he said it in:

        Why Inflation Will Come”
        http://www.lewrockwell.com/north/north807.html

        Durango Kidd
        December 26th, 2010 at 11:50 pm “…I didn’t “bash” him. I criticised a comment which you cut and pasted out of context to support your belief of hyper inflation and or collapse; but the full article was not oriented that way…”

        Notice I was discussing the process of money creation and hyper-inflation and trying to show how the process begins and is controlled. I was Not showing how Gary North’s quotes supported the belief of hyper-inflation Or collapse. I think you may have a reading and comprehension problem or something.

        I think you’re just unhappy because I post the words of authors who say things better than most and a lot of the time they conflict with your dreams and wishes. In other words, you’re having a bad case of sour grapes. That and you like to stick to goberment text book economics and anything outside of the goberment text book concepts you tend to dismiss and ridicule.
        You said once you understand and agree with the Austrians, yet you come out and say Gary North doesn’t understand the banking system?
        You can’t have it both ways.
        I don’t know how Peter Schiff puts up with this kind of crap from Keynesian mercantilist day in and day out.

        http://www.lewrockwell.com/north/north923.html

      22. Durango Kidd

        Clark: LMAO! 🙂 You just refuse to accept the facts. That’s your right. I’m not going to waste anymore of my time on you. I have decided to “opt out” as it appears everyone else is doing with respect to your copy and paste jobs.

         Just understand that the FED is not supposed to tell US what it is going to do or when it is going to do it, or how it is going to do it.

        As I explained to you in a previous post there are many ways for the FED to “unwind”. You just don’t know what they are. Suggest you search the archives here for that knowledge.

      23. clark

        You mean unravel?

        It’s Starting: Social Security Will Be in the Red Permanently from Here on Out…

        “Most telling is WaPo’s hint at the real problem, which I pointed out back in 2009 (My emphasis):

        Social Security has built up a $2.5 trillion surplus since the retirement program was last overhauled in the 1980s. Benefits will be safe until that money runs out…The $2.5 trillion surplus, however, has been borrowed over the years by the federal government and spent on other programs. In return, the Treasury Department has issued bonds to Social Security, guaranteeing repayment, with interest.

        Got that? The Treasury doesn’t have $2.5 trillion to pay to the Social Security trust fund. The Treasury is in hawk for $14 trillion. Further, there is no end in sight to additional deficits, meaning a climbing debt load for the Treasury.

        There is no way this entire thing doesn’t explode at some point. Either Bernanke starts to print like Robert Mugabe or the government is going to have to cut back big time, including on SS benefits…”

        http://www.economicpolicyjournal.com/2011/01/its-starting-social-security-will-go.html

        An illuminating comment:

        Anonymous said…    “As for all of us has anyone looked at there payroll deduction lately on there pay stub, well the federal amount is higher and the social security is lower .all the monies are going to pay back the fereral defacit…. were all paying back they make it seem that were getting mpore in our salery but my pay has gone down 40.00 a week look at your paystub….”

      24. James Woroble Jr

        And…

        400 Rabbis Can’t Be Wrong
        Today in the Wall Street Journal, 400 rabbis from around the country took a stand on what they rightly see as unacceptable language on the nation’s most widely watched “news” channel.

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