THE FEDERAL RESERVE SYSTEM

1. The 12 Federal Reserve Banks are private companies. This means that they are not a branch of government nor are they open for public trade. By not being open for public trade, they do not have to reveal their share holders.

2. By law, the governing body of congress, the GAO, can not audit the Federal Reserve Banks. The majority of audits are conducted internally. Annually, an unnamed, private firm conducts an audit.

3. Since 1982, no company owning less than 25% of voting stock in a member entity of the Federal Reserve System can have influence or control over the practices and policies of the member. In other words, if the Fed controls more than 75% of something, no other investor has any influence on how the company is run.

So what does all this mean?

1. It means that we do not know what companies have a controlling stake in the Federal Reserve banks.
2. Our congress can not audit them to ensure their honesty.
3. And that when the "government" seizes control of a bank or other holding companies, it actually means they are majority owned by the Federal Reserve.
4. Finally, the Fed determines how much money will be in the system and what interest rates this money will have attached to it.

So how does this affect us?

I will allow you to draw your own conclusions but I will submit some thoughts for your consideration.

AIG and GMAC were allowed to become "holdings companies" well before the collapse. By becoming a holding company, they became subject to the 1982 act. Citibank and others have followed the same pattern. Does it seem somewhat odd to you that those allowed to become holding companies just happen to fail? The fed took control of 79.9% of AIG. Based upon the wording of law, that means they exercise total control of how the company operates and also places them under the no congressional audit law. The single greatest influencing body in the US Economy is clearly the Fed. The Fed is a banking company. The economic collapse has triggered a string of failing companies that happen to also be holdings companies as well as banks. Any bank or holdings company that is not in the Fed system would naturally be considered a competitor. Now by amazing coincidence, the largest banking and holdings company in the world is able to consume its competitors on its own terms and it does so with the power of law constituted by a congress that doesn't have the legal right to audit it. Does anyone see a problem with this? Some have speculated that Rothschild, JP Morgan and others spread rumors about an economic collapse that lead to the Great Depression while being the first ones to exit the markets before the collapse. Who can know for sure? It is ironic that JP Morgan and Rothschild Bank are major holders in the Federal Reserve. It is also ironic that similar actions of today were also taken back then. As banks fell, the Fed "had" to buy them up. With so many strange coincidences, no wonder some people are questioning both the previous depression and the one coming up.