What They Don't Tell You: The Federal Reserve

How a bunch of private banks fleece the American people by printing their money and charging them interest for it. (3:25)

Hi, this is Jody Paulson from Moscow, ID with what they don't tell you.

Unlike General Tommy Franks, who feels there exists "the potential of a ... massive casualty-producing event somewhere in the western world ... that causes our population to question our own Constitution," I feel the US Constitution is an extremely hardy document, loaded with foresight. Unfortunately in 1913 Congress trashed that foresight and ignored Thomas Jefferson who said, "If the American people ever allow private banks to control the issuance of their currency, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the people of all their property until their children will wake up homeless on the continent their fathers conquered." Ignoring clause 5 of Section 8 of the Constitution, Congress sold out its power to coin money and regulate its value to a group of private bankers by creating the Federal Reserve.

What? The Fed isn't a public institution -- it's a bunch of private banks? That's right -- it's not owned by the Federal government or the tax payers of the United States. In fact, you could say, *they* own us, because we're in debt to them up to our eyeballs. The Fed consists of :
Rothschild Bank of London
Warburg Bank of Hamburg
Rothschild Bank of Berlin
Lehman Brothers of New York
Lazard Brothers of Paris
Kuhn Loeb Bank of New York
Israel Moses Seif Banks of Italy
Goldman, Sachs of New York
Chase Manhattan Bank of New York
Warburg Bank of Amsterdam

These guys print and ledger money out of nothing and loan it back to us with interest. Obviously we'll never be able to repay them. In Dan Benham's brilliant article, "A Phone Call to the Fed," we discover there are only $263 billion federal reserve notes in circulation, but we have a $4 trillion national debt, payable in federal reserve notes. How d'ya like them apples?

Congressman Ron Paul says "most Americans have suffered a steadily eroding purchasing power because of the Federal Reserve's inflationary policies. This represents a real, if hidden, tax imposed on the American people." Here are some statistics to back that claim. In 2001, $1,780 had the same "purchase power" as $100 in the year 1913. In 1913, $113 had the same "purchase power" as $100 in 1776. Get the feeling we're being scammed? Maybe it wouldn't surprise you to know that Enron's infamous Jeff Skilling was director of the Federal Reserve Bank in Houston.

So anyway, whenever the government runs a deficit, the Fed prints money to buy the debt, and 40 percent of our income taxes pay the interest. Keep in mind the Fed's books are not open to the public. These guys possess almost unlimited resources to buy influence and power. Presidents Jackson, Lincoln and Kennedy tried wrest control of this country away from bankers by printing U.S. dollars without charging taxpayers interest. But as you can imagine, messing with the bankers can often be a dangerous move.

I'm Jody Paulson, and I just thought you should know.