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The Soon Coming Judgment Of God Upon America and How To Escape It 317
Congressman Charles A. Lindbergh Sr. said that the Federal Reserve Act was: “The
worst legislative crime ever perpetrated in the history of the United States.”
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Marriner Eccles, governor of the Federal Reserve testified before the House Committee
on Banking and Currency on September 30, 1941. During his testimony Congressman Wright
Patman asked him how the Fed obtained the money enabling it to purchase $2 billion in
government treasury bonds in 1933. Eccles answered that the Fed had created it out of nothing
and explained that under our money system if there wasn’t any debt, there wouldn't be any
money.
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As of 2001 the total US government debt held by the public amounted to $3.3 trillion. Of
that total, the Federal Reserve held $534 billion.
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US taxpayers are paying interest to the
Federal Reserve on $534 billion in Treasury bonds that the Fed purchased with nothing. The
treasury notes are at varying rates of interest. For illustration purposes, lets assume that the
average rate of interest is 3.5%. At the average rate of 3.5% the Federal Reserve would be
earning $18.7 billion per year on interest from treasury notes alone.
Additionally, the Federal Reserve obtains the currency from the US Treasury; currently
there is approximately $580 billion in circulation. The Fed is only required to pay the printing
costs of the Federal Reserve Notes (US Currency). It doesn't matter whether they are one-dollar
bills or thousand dollar bills; the cost to them is the same. According to William H. Ferkler,
Manager Public Affairs, Dept. of Treasury, Bureau of Engraving & Printing, Washington D.C.,
the current cost to the Federal Reserve for this printing is approximately $23 for every 1,000
treasury notes. 10,000—$100 notes would cost the Fed $230. This means they would only pay
$230 for $1 million’s worth of one-hundred-dollar bills.
Even more astounding is that after the currency is sold to the Federal Reserve, the Fed
then “loans those notes back to the government (it bought them from) for THEIR FULL FACE
VALUE plus INTEREST.”
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This is accomplished through the purchase of US Treasury Bonds
by the Federal Reserve. If the Fed purchased $100 million in Federal Reserve Notes (cash or
bills), it would them use the Federal Reserve Notes to pay for $100 million in interest bearing US
Treasury Bonds. The US citizens pay interest to the Federal Reserve for all the money in
circulation which the Fed gets for essentially nothing.
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An interest rate of a meager 3.5% on an approximate $580 billion Federal Reserve Notes
in circulation would bring the Federal Reserve an additional profit of $20.3 billion per year.
From these two sources alone, interest on Federal Reserve Notes (currency) and interest on
Treasury bonds, the Federal Reserve earns an estimated $39 billion per year tax-free.
The federal income tax was an important step in creating the Federal Reserve. This is
because it gave congress the power to tax income. Without this capability the US government
would not have had the ability to pay interest on the federal debt created by the Federal Reserve.
But while we pay tax, the income of the Fed is tax exempt. According to Federal Law 12 U.S.C.
531, the Federal Reserve is specifically “exempted from Federal, State and local taxation, except
taxes upon real estate.”
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Who Owns The Federal Reserve
In August of 1911, two years before the formation of the Federal Reserve, John Moody
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