appoint me Chairman Governor of the Federal Reserve Board of Governors

Appoint Me Chairman Governor of the Federal Reserve

Introduction

The worlds’ greatest Nation is having problems in 2008. The problem is that electing a government in the United States of Americas feels like a waste of time. We call our government a Republic but we are being dictated to. One too many self-serving Congressmen spinelessly fall into line as their party leader dictates. It’s insulting the number of Presidential appointees who have broken the law and then received a pardon. From the single bullet to the pancake theory, government reports are fearlessly unscientific. It’s heart breaking the President can declare war on our soldiers for false reasons. It’s amazing that a Supreme Court Judge can find a way to say this is Constitutional. It’s debilitating how the central bank bleeds human effort from citizens and calls it interest. It’s environmental suicide to continue sacrificing Mother Nature’s real values for the man-made “time value of money”. We are led to believe Mother Nature is the unforgiving force controlling our economy but the unforgiving power controlling the man-made central bank and the “time value of money” is a small group of corporate stockholders who own the Federal Reserve Banks.

You may be surprised that the central bank of the United States of America is a for-profit corporation but professors of finance, economics, political science and law are not. They have been taught this fact and pass it on to their students. The justification is that Congress is a group of greedy people who can’t be trusted so it’s better to trust a corporation with our National money supply. Professors also teach that Supreme Court Judges are confused about the Constitution because it states that only Congress may “coin money”. The Judge’s logic is that Congress can only make coins so it’s constitutional for corporate stockholders to issue paper money, credit card money, checkbook money and electronic money.

My request to Professors is to please study the Federal Reserve Act. Based on this Act I ask Professors to please confirm or deny my conclusion that it’s not OK for the U.S. central bank to be owned by corporate stockholders and it’s not OK for the corporate stockholders to profit by issuing new paper, plastic, checkbook and electronic money without Congressional Approval. Professors are taught to think we have a gold system without the gold. What we actually have is a “fractional reserve bank run money” system without the gold. In a system without gold the term “reserve” is nothing, nothing more than propaganda. The term “Fractional Reserve” means the banker gets free money to loan. It appears obvious central bank stockholders use this free money to buy political influence and Judges and that’s why there’s a feeling that Congress can’t be trusted. It all started with Alexander Hamilton publishing three reports that sold the concept of the “floating public debt”. In a totally non-religious meaning I’m going to use the example of “borrowing from Peter to pay Paul”. Today the National Debt system is set-up like Paul authorized Peter to loan Paul’s money and then Paul borrows Paul’s own money from Peter and pays Peter interest to do so. The real Federal Reserve System is that screwed up but Professors won’t be sure until they study the Federal Reserve Act for themselves. Professors please do so and model the Federal Reserve Act while you do so.

The current situation is no Professor of finance or economics understands the Federal Reserve Act. They think it’s a waste of time because they assume it’s equitable because it’s legal. Professors of finance and economics thinks there are professors out in the world that fully understand Monetary Policy. I can assure you that there is not. If there was a professor who truly understood the Federal Reserve Act then papers would be published about the fact that the “Discount Window” and Open Market Operations are actually designed to Shrink the Money Supply with Monetary Policy, Chapter 6, to force more public borrowing and expand the government National Debt. Both situations bring profit to a corporate central bank. Professors who understand Monetary Policy will be recognized when they call for Federal Reserve Bank Statements to balance to the National Debt.

The root of the problem is the original U.S. Constitution is not being followed. Two main points of the Constitution are being ignored and they are about coining and regulating the dollar. The 1913 Congress was tricked into disrespecting our Constitution by passing the Federal Reserve Act. They had to be tricked because the other choice is they knowingly gave away all their money and power to a well-known group of profit hungry central bankers. Essentially, the Federal Reserve Act said Congress isn’t smart enough to create, control and own money so they should give that power and responsibility to corporate bankers. Since then the U.S. became one country with two governments. One is a poor elected government who never has enough money and the other is a rich corporate government who never runs out of money. The Federal Reserve Board of Governors acknowledgment of the two governments is in Chapter One, One Country with Two Governments.

There was a time long ago when corporate stockholders gathered gold to loan to governments. The Federal Reserve doesn’t use gold as money. This means corporate stockholders are obsolete and the obsolete are normally cut out of the budget. Money today is the Federal Reserve note (Fed note). It has “legal tender” written on it. Legal tender is a government document that has to be accepted in exchange for goods and services. The Fed note is actually a government document the corporation is privileged to issue. That means the elected government borrows government documents from the corporation. The Federal Reserve Act has a loophole that allows the corporate stockholders to never run out of government documents to loan to the U.S. Government for a profit. An explanation of how this paper money loop evolved is in Chapter Three, Virtual Money National Debt.

The evolution of “legal tender” paper money goes back to the Bank of England Corporation. Here is a list of the major financial acts in the evolution.

1694 Charter of the Corporation of the Governor and Company of the Bank of England

1791 An Act to Incorporate the Subscribers to the First Bank of the United States

1811 Bank of the United States expires

1816 An Act to Incorporate the Subscribers to the Second Bank of the United States

1836 Act to Repeal Incorporation of the Second Bank of the United States

1864 National Currency Act, latter called National Bank Corporate Act

1913 Federal Reserve Act

All the bank acts including the Federal Reserve Act were modeled after the Bank of England. Being modeled after that particular corporate bank is bad because it gave away government control of money. The Bank of England Charter established a corporation as the government tax collector and paid them “a piece of the action” in gold. Kings and Presidents may come and go but a corporation that gets a share of government taxes is going to be handed down from father to son, forever. That’s why I say the Bank of England established the “Establishment”. Essentially, the Federal Reserve Act is a service contract that hired the “Establishment” to convert the United States economy off the gold standard and onto the paper money standard. We got screwed in the conversion. A hundred years ago, the whole world was on the gold standard, but now, we are all on the paper money standard. Did the poor elect government ended up with all the gold or was it the Establishment? I now call the Establishment the “Paper Money for Gold Franchise” because that’s what they did, swapped their paper money for government gold. It’s even more embarrassing than that because they actually swapped government paper money for government gold. Today they are still doing the same thing but instead of free gold they’re getting free human effort from the population of the U.S. The explanation is in Chapter 4, Human Effort Backs the Fed Note.

I’ve waited years for someone else to study the Federal Reserve Act like a lawyer protecting his client. Since no one has stepped up to bring clarity to the cost of the Federal Reserve Note, I feel forced to try. Let me tell you, I’m not happy I have to do this. I would rather just say I’m a patriot and I love this country without actually having to take action. One of the actions I’m taking is to explain some of the tricky parts the Federal Reserve Act with this manuscript. I hate that Act but I have to take my hat off and give the writers respect. It’s amazing how many educated smart people are led to the wrong assumptions. The 1913 Federal Reserve Act conquered the elected government without firing a shot by granting the power of the U.S. central bank to stockholders. Stockholders control the Federal Reserve Bank Corporations. The corporations control the Board of Governors. The Board of Governors controls money. Money is used to control Politicians. The Politicians control the government and the government controls the population. As a business deal, the Federal Reserve Act is the most profitable government contract in the universe. The corporate stockholders earn enough money to buy a Presidential election and then dictate whom the President should appoint to the executive branch, Supreme Court and Federal Reserve Board of Directors. That last statement is an undocumented opinion. Based on the real world you live in, do you disagree? The sad truth is I can ask that same question in every country in the world and get the same answer, (except Iran and North Korea because they are fighting the central bankers). The 1913 Congress also screwed-up their foreign policy responsibility stipulated in the U.S. Constitutional. They granted the stockholders the privilege to represent the U.S.A. in foreign countries and use the power of U.S. Legal Tender. If you have ever wondered why so many countries peg their currency to the dollar then check the explanation in Chapter 7, Other Fed Responsibilities (Part 4).

After studying the Federal Reserve Act I have concluded the central bank it established concentrates enough money and power to be the root of most government evil. Although immensely strong, the power is concentrated on one appointed person. The loyalty of that one appointed person determines if the power of the United States central bank benefits our elected government or the independent corporate government. The ultimate appointee is titled the Chairman of the Federal Reserve Board of Governors. I call him the Chairman Governor. That’s the position I’m prospecting for with this manuscript. Historically, his loyalty appears to be purchased by stockholders of the Federal Reserve. That appears evident by the way he always seesaws interest rates up and down. The current Chairman Governor used the same technique to raise interest rates until families with sub-prime credit ratings and adjustable rate mortgages became financially ruined and then lowered the interest rates. See the explanation in Chapter 7, Other Fed Responsibilities (Part 2).

I first studied the Federal Reserve Act while earning a Bachelors of Finance. You may think a bachelors' is not a high enough degree to qualify as Chairman Governor. You would be correct in most disciplines but in the case of finance and macroeconomics a bachelors’ degree is high enough to know the PhD’s don’t understand the subject they are PhD’s of. Ask a PhD of macroeconomics or finance, “What is the effect on production, employment or inflation if one more dollar is added to our money supply?” The PhD doesn’t know because there isn’t an equation that models the economy. Academically speaking, they guess. The Chairman Governor says he’s uncertain how much money is in the money supply because people are unpredictable. I say there’s way too much uncertainty and unpredictability for a man-made money system using double entry accounting were every person and business files a tax return. A dollar could almost be tracked hand to hand as it circulated. Simply put, University Professors of macroeconomics and finance don’t have a mathematical equation defining our economy because they haven’t figured out the Federal Reserve Act and Monetary Policy. It’s not their job; ask any Professor of finance or macroeconomics and they will tell you that understanding Monetary Policy is not part of their job. I plan to fix that problem with Chapter 5, Fed Responsibilities and Monetary Policy.

The Federal Reserve Board of Governors has a web site with questions and answers. I disagree with most of their answers. Their answers are misleading. They left me room to talk because they weren’t professional enough to reference the Federal Reserve Act to justify any of their answers. I’m just the opposite. My responses are based on appropriate sections of the original 1913 Federal Reserve Act and current 2008 version. This manuscript is pretty much a disagreement with the Federal Reserve Board of Governors web site. Many academicians consider the Federal Reserve Act to be a historic document. The problem is that document established our current central bank system. Do you think there’s too much corporate money and influence in politics today? If so then understanding the Federal Reserve act would be a good idea because it created the problem by allowing stockholders to own the United States central bank system as a for-profit corporation. Understanding the Federal Reserve Act is actually a very difficult task because it was written to mislead. Here is one example. It is written to allow five Washington D.C. Trust Companies to have a monopoly to deal with the U.S. Treasury. The twelve district Reserve Banks we know about are forced to deal with the five who hold the U.S. Treasury Comptroller of Currency Certificate of Organization because they have monopoly access to the U.S. Treasury. This fact is hidden in a sentence that is one hundred ninety-seven words long with five “ands”, fourteen commas and one period. See Chapter Two, Who Owns the Federal Reserve Corporations for details about the five certificates.

Every neighborhood bank is required to own a minimum amount of stock in the Federal Reserve Bank in their district. That’s OK, good, fine, acceptable. Don’t change that part. The problem is there are additional shares of capital stock in the Federal Reserve, World Bank and International Monetary Fund that shouldn’t have been issued. These shares of stock create a “loophole” that allows profits to flow into corporate hands and not back to the U.S. Treasury. The solution to the problem is for Congress to dissolve the privilege to own the “loophole stock” and assign it to the U.S. Treasury. The effect is to reroutes central bank profits to the U.S. Treasury. Congress could decide to use the profits to pay off the National Debt. That sounds reasonable. End result is the National Debt goes down which stabilizes the dollar, inflation slows, prices stop rising and almost everyone is happier, especially the oil producing countries. Changing nothing except the ownership the Federal Reserve from a corporation to a government agency is not hard to do and is the purpose of this manuscript. See Chapter 8, Recommendations.

The Federal Reserve Act is a very complex document. The purpose of this manuscript is to explain the central bank system as the document allows. The actual Federal Reserve is unlike the system we think we have. We have to rethink the concept of money. It will take a little while for us to adapt. Since I’m familiar with the system I feel obligated to volunteer to be appointing Chairman of the Federal Reserve Board of Governors for a short time. It’s not a job a lot of people want but it’s critically important to our Republic. The powers of the Chairman Governor are wide enough to switch the system from a stockholder profit center to a government utility benefiting citizens. I’m just one member of the population who nobody knows. I would prefer to keep it that way but since I’m volunteering for a public office I’ll try to let some of my personality come through in my writing so you can get an idea of who I am.

A copy of the original Federal Reserve Act is in Appendix 1. Sections quoted in this manuscript are in italics. The Federal Reserve Act and other financial acts I used for research is found at http://landru.i-link-2.net/monques/index.html#GOOD%20NEWS! My sincere thanks to this patriot web master for doing what he could when he could to fight for our freedom. I hope I did my job well enough for the two-thirds of Congress to do their job and take ownership and responsibility of the Federal Reserve System. Fighting for freedom is a team effort. The Republic of the United States of America is the land of the free and the home of the brave. If this is your home then you are the brave. Do what you can, when you can, where you can. Let your heart lead the way. But understand the documentation. We are getting beat by our own documentation.

End of Introduction

The purpose of this web site is to display a manuscript that explains hidden aspects of the Federal Reserve Act. The purpose of the manuscript is to help people understand that Congressional Act. The desired benefit of people understanding the Act is they will then be able to help me convince professors of finance and economics to study the Federal Reserve Act. An unappreciated fact is that no professors at any college understands the Act. Professors flat out refuse to study it even though the Federal Reserve Act established the operating principles of our central bank system. This web site evolved because of my 25 year failure to convince a single professor to model the Act and publish a paper in an academic journal. This is my sixth and final attempt intended to help professors of finance and economics understand some tricky wording in the Federal Reserve Act of 1913. The Federal Reserve Act covertly granted a few corporate stockholders the privilege to coin new Federal Reserve Notes in checkbook money form and clear their own checks. It also granted the same stockholders the privilege to be owners of five Federal Reserve Parent Banks hidden as Washington D.C. trust companies. My current objective is to position professors to understand the Federal Reserve Act as written so they can confirm or deny my recommendation to Congress. A common recommendation from professors of finance and economics should bring members of Congress together. The hope is to build a consensus among members of Congress to establish the two-thirds majority needed to pass an act.

My recommendation is to change nothing except, “Dissolve the privilege for corporate stockholders to own capital stock in: the five Federal Reserve Parent Banks holding the Comptroller of Currency Certificate of Organization, the International Monetary Fund and the World Bank”. The strategy of this recommendation is to keep the Federal Reserve System intact while at the same time redirect the power of coining modern money from corporate stockholders to the Republic of the United States of America.

This manuscript has eight chapters that are accessed by clicking the navigation bar above. In addition, Appendix A Parts 1 and 2 contains a copy of the original version of 1913 Federal Reserve Act. The original version established the operating principles of our current money supply. Appendix B contains the data for a probabilities analysis that uses the National Debt to predict “expected future inflation”. It indicates the National Debt consists of “newly coined money”. Under the same box is Related Links list web sites that contain other financial acts referenced in this manuscript.

My method to persuade professors of finance and economics to study the Federal Reserve Act is to ask college newspaper editors to write a story about the fact that Professors don’t understand the Act. Two letters are in “Letters to College News Editors”. One letter is a Short Version with 200 words and the other is the Complete Version with two thousand word.

The manuscript is titled Appoint Me Chairman Governor. The Introduction is below. A copy in MS Word format is available on request by e-mail or ftp. Please see Contacts for the information. Also please feel free to inform me of editing mistakes and parts that are hard to understand or poorly worded. Right now “no response” is my biggest feedback. Writing is not my thing and I’ll accept any help to get the job done. FYI, I don’t really want to be Chairman Governor. I rewrote this so many times I just ran out of angles to try.