Skip to main content

Biggest Scam in History - The Federal Reserve System

You may be a victim of the biggest scam in history, and not even know it - the Federal Reserve System. Learn what it is, how it works, and what's being done to stop it.

For an easy way to understand how the Federal Reserve System works, consider the following illustration. It's in the form of an agreement, or contract, between two "persons". Let's you and me play the parts of the two parties to the contract:


I Have a Deal for You

Here is your part of the deal. If you choose to agree to this contract, you must:

  1. Mortgage your house to the max, if it isn't up-side-down already.
  2. Pool up everything else you own and take a loan against it as collateral.
  3. Take all the proceeds from 1. and 2., and deposit them in your checking account.
  4. Liquidate all your other accounts and any other assets you may have, and put the proceeds into the same above mentioned checking account.
  5. Now give me the checkbook, and sign the account over to me. Yes, you'll be putting every last thing you own into the control of my capable hands.

Wait! Don't run away so quickly!

Listen to what you get in return! Here’s my part of the deal. If you will do the above, I will do the following:

A Federal Reserve check can never bounce.

A Federal Reserve check can never bounce.

  1. Whenever you want any amount of money for anything, just ask me via a signed document, and I will write you a check. It can be any amount, regardless of the balance of the account you signed over to me, and you can get the checks as often as you like.
  2. These checks will be loans from me to you. And here’s the sweet part: you don’t have to pay the principal of the loan. Let me repeat that: You do not have to pay the principal of this loan. You only pay the interest. It is a true interest only loan. And the interest rate is very good - it’s on par with US Treasury Bonds.
  3. Are you still a little skeptical? Let me sweeten the deal a little more. If you should happen to go on a wild spending spree for a long period of time, and you start to get nervous that even just the interest payments are growing exponentially out of control - don't worry, you can always just borrow more money and use that to pay any amount of interest.


Agreement

So are you convinced yet? Is it a deal? Great! I’m glad you agree now, since you’ve already accepted this deal when the Federal Reserve Act was stealthily passed on December 23, 1913 while Congress was preoccupied with getting away a little early for Christmas Break1. This Act of Congress reinstated a Central Bank in America for the fourth time, this time under the guise of a “Federal Reserve System”.

Yes, in this illustration, I am the Federal Reserve, and you are the United States Government

And yes, this is how the business relationship between you and me got started, and this is the gist of how it actually works.

As for your part of the deal, you handed over your assets to me mostly in these two ways:

Executive Order 6102

Executive Order 6102

Executive Order 6102

  1. Your Congress stated on March 9, 1933 “The money will be worth 100 cents on the dollar, because it is backed by the credit of the nation. It will represent a mortgage on all the homes and other property of all the people in the nation.”2,3
  2. Your president Franklin D. Roosevelt issued Executive Order 6102 on April 5, 1933 requiring all “persons” to turn over all their gold coin, gold bullion and gold certificates to a Federal Reserve Bank in exchange for Federal Reserve Notes by May 1, 19334. Yes, you performed your part of the deal a little late, but that’s only because I gave you a 20 year moratorium before I called in your bankruptcy5.

As for my part of the deal, I've been buying your bonds ever since. Those signed documents that you give me whenever you request money from me are called "Government Securities" (Treasury Bonds, Notes and Bills - Let's just call them all "bonds" for ease). This is how you get your money in unlimited quantity. You take some paper and ink, and create a bond. I take some paper and ink and create a check6. We exchange the documents7. Your bank honors these checks even though my account has no balance to back it up8 - no questions asked. I am the Federal Reserve - I am above questioning by anyone.

federal-reserve-system-biggest-scam-in-history

The transaction is a simple purchase - an even exchange. Let's say you want a billion dollars. The bond you create clearly states "One Billion Dollars" on its face, and it takes on that value the moment you sign it. The check I write is for one billion dollars, and it also takes on that value when I sign it.

It's all perfectly legal. It's just an even exchange, there is no profit for either of us. We are just exchanging negotiable instruments of equal value according to UCC 3-303(a)(4).

Scroll to Continue

Additionally, you have been selling government bonds to the public for whatever market there is at the time, in exchange for my Federal Reserve Notes (dollars) that the people are using as money.


Win - Win - Win - Win - Win

Count 'em, yes, that's 5 wins for us9. After the above mentioned exchange takes place, you have a billion dollars more than you had before, in the form of that check that you can deposit into your account. - Win #1.

I also have a billion dollars more than I had before, in the form of that Government Bond. In aggregate, I can flaunt and flail and sell these bonds on the open market at the time of my choosing, giving me god-like power over the economy. In fact, I think I’ll form a committee to do just that. I’ll call it “The Federal Open Market Committee”, or FOMC. - Win #2.

In addition, I can collect interest on that Government Bond until I sell it. - Win #3.

In addition, and this is the biggest win, I will be collecting perpetual interest on that billion dollars. You see, that check I gave you is considered a "loan". It is part of “The National Debt”. I will be collecting interest on it perpetually. You do not, and even cannot, pay the principal10, and so the interest is due continually. - Win #4.