The Long Version

 

 

Dear Editor,

 

     Would you please ask the Professors of Finance and Economics at your school if they have read the Federal Reserve Act and understand it.  After they all respond “No”, would you please help me persuade them to study the 1913 Federal Reserve Act? It’s the congressional act that established the operating principles of the United States central bank system.  These are the principles that established the current dynamics for inflation, weak dollar, National Debt and political influence from corporations.  The Federal Reserve Act is incredibly hard to understand and professors refuse to study it.  I’m asking you to assign a team of journalists to research and write a story about the fact that professors don’t understand the Federal Reserve Act and hope that your story will persuade them to study the act and my manuscript.

 

    I have studied this act and have explained hidden details in a manuscript.  The manuscript and recommendations are posted at www.chairmangov.com.  The Federal Reserve act organized our central bank as corporations with stockholders.  Professors know this fact and accept it.  One of the hidden details they haven’t figured out is one class of stockholders, I call the five certificates, is the root of our economic problems because this small group of people controls our money supply and are privileged to make a profit on it.  The five certificates say they are increasing the money supply but they are actually shrinking it with “Open Market Operations” and “The Discount Window”.  Shrinking our money supply forces us to borrow and pay them interest through the “Rediscount” process (see chapter 5, Monetary Policy at chairmangov.com).  What we are actually borrowing is legal tender.  Legal tender is a government document called a Federal Reserve Note.  Our National Debt consists of our government borrowing its own legal tender documents and paying corporate stockholders interest to do so.

 

     I recommend changing nothing except dissolving the privilege to own stock in the Federal Reserve Banks, International Monetary fund and World Bank.  This recommendation changes the world for the better by detouring money and power away from the Reserve Bank stockholders and directing it to the Republic of the United States of America.  This requires an act of congress.  Before congress will pass an act my conclusion has to be confirmed.  For that we need professors of finance and macroeconomics to understand the Federal Reserve Act.  Then confirm or deny my recommendations by referencing the Federal Reserve Act.  And that brings me to asking you for help to persuade professors to study the original Act.

 

     The situation is the Federal Reserve Act established a central bank system that’s wholly inequitable to the population of the United States because it’s owned by a small group of stockholders I call the five certificates.  As a person who has read the act over thirty times I conclude it was purposely written to deceive and mislead.  It is so misleading that professors choose to avoid it.  A fact that supports that comment is professors of finance and macroeconomics don’t have a math equation to predict financial events.  Please ask your professors, “If one more dollar is added to the money supply then what is the effect on inflation, or employment or production?”  They can’t even give you a ballpark figure (see Appendix B, chairmangov.com).  Professors assume they understand the Federal Reserve.  They think it’s a gold system without the gold.  But when numbers are applied to their assumption the numbers don’t equate.  The excuse they have been trained to regurgitate is to say, “People are too emotional to predict”.  That’s another assumption without grounds because a poll of four hundred people can predict a presidential election with a ninety percent confidence interval.  In addition, the economy is a closed system.  Yell and scream and get as emotional as you want over finance and economics.  Either a product or service is available for sale or it’s not.  Emotion has nothing to do with analyzing the numbers.

 

     Almost everything in our world can be put into numbers.  But, professors can’t quantify an equation to model our man-made banking system that’s based on numbers using double entry accounting where every person and business files an income tax return.  A dollar could almost be tracked as it’s passed from hand-to-hand in exchanges.  Professors in other fields can calculate the effect of one electron in a cell phone or how to slingshot an Apollo space capsule around the moon.  But professors of finance and macroeconomics can’t do the math and that means they don’t understand the subject they are professors of.  That makes them “Lesser Professors”.

          

Here’s my story.  I discovered professors of finance and macroeconomics don’t understand the Federal Reserve Act while earning my BBA Finance in 1983.  While calculating the expected future value of a Fortune 500 company’s stock my professor said to use 3% or 6% as the inflation risk factor.  I said I worked too hard on all the other variables to just stick in a number.  I wanted the math formula that calculated “expected inflation” but my professor said there isn’t one.  I tried to come up with an equation but nothing correlated.  I complained so much my professor sent me to read the Federal Reserve Act.  I read it several times with the intention of creating a math model so I could calculate “expected inflation”.  I concluded the Federal Reserve Act was purposely misleading, promoted wrong assumptions, written out of order, had few numbers, created fractional reserve of paper money based on paper money and unnecessarily created a corporate system with profit for stockholders.  I reported my findings but my professors couldn’t confirm my findings.  The most disheartening part is they weren’t interested and still aren’t interested in learning how the Federal Reserve Act actually works.  Professors said the Federal Reserve Act is not their job because it’s not their specialty and I should find a professor who specializes.  After 25 years of looking I can say that there are zero finance and economics professors who understand the Federal Reserve Act.  It’s not part of the curriculum.  They assume that just because the Federal Reserve Act is legal that means it’s equitable.  Many think it’s a historic document and don’t realize it’s the founding principles of our current money supply.  I’m embarrassed for them because all professors preach to research a problem and apply critical thinking but as “Lesser Professors” they do not do what they preach.

 

           Here’s an example of critical thinking and research they aren’t doing.  In 1913 there were zero Federal Reserve notes (Fed notes).  Please ask your professors, “Where did the nine trillion Federal Reserve notes come from that were borrowed for the National Debt?  In a few years the National Debt will be fifteen trillion.  That’s more Fed notes than is shown in money supply data today.  Where will the extra six trillion come from that will be borrowed?”  Is there only one Fed note and we borrow it six trillion more times?  Ha, ha, ha.  According to the Federal Reserve Act section 13.2, (covered in Chapter 4 Human Effort Backs Fed Notes, on the web site), the corporate stockholders of the Federal Reserve Bank are privileged to say their checking account has six trillion more dollars in it and they will write a check to loan Fed notes to the National Debt.  The technical term used in the Federal Reserve Act is to issue drafts for bonds of the Government of the United States.  To issue a draft means write a check.  That means the stockholders buy the National Debt for nothing because they have the administrative privilege of increasing their checkbook balance, writing a check and then clear the check.  The National Debt actually represents new money added to the money supply in the form of checkbook money.  Then the next step is the Federal Reserve stockholders sell the National Debt to foreign countries and keep the gold and foreign currency they get as profit.  We know they kept it because nine trillion in gold and foreign currency didn’t show up on Treasury balance sheets to offset Treasury Bonds and stabilize the dollar.

 

Our current money and credit system is a known system.  It’s the same old time system that caused the “run on the bank”.  Bankers would issue “bank run money” to their customers and it worked to facilitate exchanges until customers tried to redeem for gold.  Essentially what happened is the “bank run” Banker wrote a government contract called the Federal Reserve Act.  The new name for “bank run money” is the Fed note.  It got a new name but it’s used in the same old fashion way.  Federal Reserve Act Sections 13.2 and 4.8 grants the privilege for notes, drafts and bills of exchange to be issued or drawn for the purpose of making advances, discounts and accommodations arising out of agricultural, industrial, or commercial purposes and for bonds and notes of the Government of the United StatesThese are the old time concepts that make it legal for Reserve Bank stockholders to create, issue and coin new paper money, checkbook money and letters of credit to loan for interest.  “Bank run” Bankers can’t make gold out of nothing so they use the law to say a piece of paper is as good as gold.  That law is legal tender.  Then they use the law to make a profit.  The term Body corporate in section 4 grants the privilege to be a stockholder.  The term dividend in section 7 Division of earning, grants the stockholders the privilege to keep the profit.  Applying numbers to these concepts along with the effect of rediscount, open market operations and the discount window as explained in my manuscript is what professors of finance and macroeconomics have missed because they think the Federal Reserve Act is not part of their job.

 

I know it sounds confusing but think about Fed notes and “bank run money” in terms of poker chips.  As an example let’s make you a five certificates class stockholder.  As a stockholder you would be privileged to use poker chips just like real money.  You would be able to make your own poker chips and spend them like cash.  You would be able to write letters of credit promising to pay poker chips if merchandise is shipped.  You would be able to deposit poker chips in your bank account and buy gold or Treasury Bonds.  The country needs more money so would you please increase you bank account by writing in a deposit of six trillion poker chips and then write checks to buy the National Debt over the next couple of years?  You will be allowed to sell the National Debt to foreign countries for cash and gold and keep it as profit.  Because you have control of United States “legal tender” poker chips foreign countries will want to peg their currency against your poker chips.  Then you could control foreign central banks and thereby control the money, politics, interest rates and corporations in foreign countries.

 

My recommendation is to keep the Federal Reserve System but dissolve the privilege for stockholders to own, control and profit from the United States central bank system.  My problem is to persuade professors of finance and macroeconomics to study the Federal Reserve Act so they can confirm or deny my recommendations by quoting sections of the Federal Reserve Act.  Once professors agree to the meaning of the Federal Reserve Act then it should be possible for two-thirds of Congress to come to the same understanding and vote to take back the responsibility and authority to coin new money that the 1913 Congress gave away to corporate stockholders.

 

I’m asking for your help and the power of the free press to persuade professors to study the Federal Reserve Act and my manuscript.  Please ask your professors if they understand the Federal Reserve Act and then report the results in your newspaper and the forum at www.chairmangovforum.chairmangov.com.  The forum was established for editors to compare responses from their schools’ professors with other schools.  I believe that once professors realize that other professors don’t understand the Federal Reserve Act they will realize the importance of studying it.  The best case would be for your professors from finance, economics, political science, law, history and English to work together in a group and report their findings to your state’s Congressional members during this election season.  I’m asking you to assign group work to professors, I think that’s funny.

 

Many people have fought and died for our freedom.  All we have to do is study some documents and write some papers.  It’s the least we can do as Americans.  My generation of finance and economic professors, the baby boomers, has been sheep in the hands of the Reserve Banks stockholders.  I hope your generation of professors is smarter, braver and not as lazy, 

 

Thank you for your time and I hope you win the Pulitzer.

 

P.S.  I read and understand technical material a lot better than I can explain or write about it.  My apologies for editing mistakes in this letter, my manuscript and the web site.  Any input you are willing to offer is appreciated.

 

Below are about 140 editors I intend to e-mail.

Ka Leo o—University of Hawaii

editor@kaleo.org, Editor-in-Chief, Mr. Taylor Hall, (808) 956-6125

 

editor@columbiaspectator.com  NY

editor@cornellsun.com  NY

integrat@clarkson.edu  NY
spec@hamilton.edu  NY

editor@hofstrachronicle.com  Editor-in-Chief:www.hofstrachronicle.com NY

torcheic@gmail.com NY
editorinchief@dailylobo.com NM

Editor@TheDartmouth.com NH

oped@dailytargum.com 750 words   www.dailytargum.com NH

davidsonian@davidson.edu NC

WC@WCU.EDU NC

Pendulum@elon.edu NC

Seahawk.editor@uncw.edu NC

redgreen@minotstateu.edu ND

tnh.editor@unh.edu

alison.kelly@und.nodak.edu ND

jm583304@ohiou.edu  OH

newsrecordent@gmail.com OH

kgill2@kent.edu;kgill2@kent.edu;dgulasy@kent.edu OH

voice@wooster.edu  OH

ucdp@uc.edu U of Cincinnati OH

thenews@bgnews.com Bowling Green OH

lantern@osu.edu OS OH

editor@ocolly.com OKSU

dailyeditor@ou.edu  UofOK

editor@dailyemerald.com OR

http://www.dailyvanguard.com/home/lettertotheeditor/ OR form

ray.betzner@temple.edu, Ray Betzner, Director of News Communications

www.temple.edu/temple_times PA

http://www.thepenn.org/home/lettertotheeditor/ form

jprender@upenn.edu jprender@upenn.edu  PA

editor@pittnews.com editor@pittnews.com  PA

http://www.villanovan.com/home/lettertotheeditor/  PA

http://www.muhlenbergweekly.com/home/lettertotheeditor/  PA

editor@thetriangle.org PA

http://daily.swarthmore.edu/contact/  PA

forum@thetartan.org forum@thetartan.org  PA

letters@browndailyherald.com letters@browndailyherald.com RI

http://www.dailygamecock.com/home/lettertotheeditor/ USC

http://www.thetigernews.com/ltteform/ SC

letters@utk.edu letters@utk.edu TN

http://www.utcecho.com/home/lettertotheeditor/ TN

etnews@etsu.edu etnews@etsu.edu  TN

editor@thedailycougar.com editor@thedailycougar.com   TX   Caitlin Cuppernull

jhofedit@smu.edu jhofedit@smu.edu TX  Jordan Hofeditz

thresher [at] rice.edu TX

editor@thebatt.com  Editor in Chief  Kevin Alexander 979-845-3315  TX

Lariat@baylor.edu Baylor Lariat  (254)710-1711

editor@delmar.edu     TX      Christine Hervey
tony12.ga@gmail.com      Tony Gutierrez  Editor In Chief  TX

editor@dailytexanonline.com    Editor: Leah Finnegan   (512) 232-2212    TX

letters@byu.edu.     TX

eic@broadsideonline.com     Janice Leary  VA

tartan@radford.edu   VA

lwhited@ferrum.edu   Dr. Lana Whited, the newspaper's advisor

opinionseditor@collegiatetimes.com  Letters to the Editor VA

editor@thedaily.washington.edu  Andrew Doughman Editor in Chief 206-543-2700

editor@dailyevergreen.com Dan Herman  Editor WA
Easterner.editor@gmail.com Editor-in-Chief Chelsea Schilter (509) 359-6737
eroper@gwhatchet.com Editor in Chief Eric Roper (202) 994-1313    DC

editor@thehoya.com  Bailey Heaps, Editor in Chief  DC

rherron@gmu.edu  DC

eic@broadsideonline.com  Janice leary  DC

overlydbk at gmail.com Editor in chief: Steven Overly DC

editor@badgerherald.com   Mike Gendall, Editor in Chief     WI

editor@dailycardinal.com Editor-in-Chief Jill Klosterman protected from spam bots, MI

post@uwm.edu  MI

forum@themaneater.com   MO

letters@studlife.com  MO

editor@mcckc.edu  Letters to the Editor  MO

editor@thedmonline.com   Editor Note Editor in Chief   Tyler Clemons 

editpage.editors@umich.edu.

editorinchief@statenews.com Editor in Chief Matt Bishop

editorial@lanthorn.com  Editor in Chief Alicia Wireman   Phone #: (616) 331-2464

letters@thecrimson.com, Editorial Board c/o The Harvard Crimson, 100 to 300 words,

letters@tech.mit.edu

chronicle@bc.edu.    Editor Sean Smith

comments@nu-news.com letters to the editor, opinion pieces Jeff Miranda 617-373-2648

fscgatepost@yahoo.com  MA

overlydbk@gmail.com  MA

orientopinion@bowdoin.edu

opinion@lsureveille.com editor@lsureveille.com    Tyler Batiste Editor-in-Chief

ksmiley@kykernel.com   Editor in chief Keith Smiley

editor@chherald.com

editor@trailblazeronline.net Our current staff Sarah Perry  Editor

sstrate@ksu.edu   Salena Strate   Editor and Chief

sneff@kansan.com  Sarah Neff   Editor

letters@iowastatedaily.com or 108 Hamilton Hall. Email letters are preferred.

emily-a-barnes@uiowa.edu   Editor-in-Chief    Emileigh Barnes

bapint@niacc.edu   Editor Bethany Pint

ids@indiana.edu   Editor-in-Chief Michael Reschke

record@goshen.edu    Phone: (574) 535-7398This e-mail address is being protected from spam bots, you need JavaScript enabled to view it

saseditr@isugw.indstate.edu  Michael Millington,  Editor in Chief,

editorinchief@northernstar.info   John Puterbaugh

editor@buscout.com      Editor Sarah Raidbard editor@buscout.com

chicagomaroontips@gmail.com News tips should be directed to the editor's desk (773-834-1611)

chronicle@uchicago.edu

cwn@uchicago.edu IL

journal@uis.edu  IL  Co-Editors: David Amerson and Amanda Dahlquist   

editor@arbiteronline.com  Editors  Shannon Morgan EDITOR-IN-CHIEF

ccrist@randb.com  Carolyn Crist  Editor in Chief   GA

sting@spsu.edu  Twila McConnell Editor-in-Chief double spaced, three hundred words.

dculclasure@alligator.org FL  Editor Devin Culclasure 

editor@themiamihurricane.com  FL Editor in Chief  Greg Linch 

editor@yaledailynews.com   CT  Editor in Chief  Andrew Mangino   Editorial  

editor@yaleherald.com   Editor in Chief

 ccvoice@conncoll.edu>   This page maintained by The Voice    

dpollan@mscd.edu  Editor-in-Chief David Pollan

hammeleval@adams.edu  Amy Hammelev – Editor  

opinion@dailycal.org  Berkely

editor@dailytrojan.com  

news@daily.stanford.edu  Editor in Chief, President: Christian Torres  

editor@ucsdguardian.org This e-mail address is being protected from spam bots, you need JavaScript enabled to view it   Matt McArdle  Editor In Chief

letters@thedailyaztec.com

berkeleyan@berkeley.edu CA

haasweek@haas.berkeley.edu

editor@csun.edu  Editor in Chief  Daniel Antolin

editor@californiaaggie.com  Editor in Chief   Richard Procter           530-752-9887   

jane.m.lee@pepperdine.edu    Editor-in-Chief

feedback@squelched.com

managingeditor@theorion.com  Managing Editor Genny McLaren

clause@apu.edu     

gwenm@ucsc.edu  Gwen Mickelson, managing editor. fewer than 250 words.

pasadenacourier@yahoo.com  CA

traveler@uark.edu  Amanda Wells  Editor   479.575.8455

herald@astate.edu, mailed to P.O. 1930 State University, AR  300 words

editor@wildcat.arizona.edu Editor in Chief Lance Madden

state.press@asu.edu Please put State.Press as the first word in the subject line. 

news@theplainsman.com Natalie Wade  Editor   

kathleenprasse@creighton.edu  Kate Prasse Managing Editor

Editor@TheDartmouth.com News Tips: (603) 646-2600

tnh.editor@unh.edu Executive Editor, call 603-862-4076 or e-mail

spectatr@princeton.edu

editorinchief@dailylobo.com   Damian Garde

fiatlux@alfred.edu Primary E-mail:

skidnews@skidmore.edu
editor@campustimes.org  Ben Wrobel  Editor-in-Chief

editor@cornellsun.com Editor in Chief:
thefed@columbia.edu     

ithacan@ithaca.edu  Kathy Laluk, Editor klaluk1@ithaca.edu klaluk1@ithaca.edu

editor@columbiaspectator.com     Tom Faure   (212) 854-9546

integrat@clarkson.edu  Editor-in-Chief: Mary Konecnik

     After failing for 25 years to persuade a professor of finance or economics to study the Federal Reserve Act I feel forced into enlisting the add of the free press to help pressure and embarrass professors to studying the Act.  My plan is to e-mail the story idea that professors of finance and economics are “Lesser Professors” because they can’t calculate expected future events like other professors can in their respective fields of study.  The plan is to send a “Letter to the Editor” to as many college newspapers as possible.  The Yahoo directory of College and University Newspapers is my source for e-mail addresses.  I’m making my e-mail list and a forum available to Editors so they can confirm to each other that their professors don’t understand and won’t study the Federal Reserve Act.       

 

     My intention is to e-mail two hundred college newspaper Editors in the United States.  The e-mail list is available by request or by ftp.  The list is in two parts.  One part is a folder with Web Site Forms for the “Letters to the editor”.  These forms normally limit the number words allowed.  In this case only the first part of my letter is sent.  The other part is a word file with “Read Me” in the file name that lists of Editor e-mail addresses.  To receive the lists either e-mail a request to rick@chairmangov.com or ftp.chairmangov.com, username: anonymous@chairmangov.com, port 21.  A copy of the manuscript Appoint Me Chairman Governor is also available by e-mail or ftp..