Topic: Federal Reserve
The Money Matrix - Who Owns the FED (UPDATED PART 7/15)
...and why it both does and does not matter.
by Jake Towne, the Champion of the Constitution
(libertarian)
Sunday, June 21, 2009
CARTEL - n. a combination of independent commercial or industrial enterprises designed to limit competition or fix prices (per Merriam-Webster's Dictionary) (emblem)__________________________________
"Banking was conceived in iniquity and was born in sin. The Bankers own the Earth. Take it away from them, but leave them the power to create deposits, and with the flick of the pen they will create enough deposits to buy it back again. However, take it away from them, and all the great fortunes like mine will disappear, and they ought to disappear, for this would be a happier and better world to live in. But if you wish to remain the slaves of bankers and pay the cost of your own slavery, let them continue to create deposits."
- Josiah Stamp, President of the Bank of England in the 1920s
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[This article is updated with more infomation and the March 2009 figures released from this February article in response to a couple press requests. The figures were calculated from the FED data here, using the same method described here.]
So, who owns the Federal Reserve? Well, it certainly is not the US government, as many would suppose. In fact, I have found that quite a few - including myself last year - who are roughly aware of how the FED works but believe that the owners of the FED is a secret. Well, it is not. The FED's Purposes and Functions (page 21/146) reads:
"As of March 2004, of the nation's approximately 7,700 commercial banks approximately 2,900 were members of the Federal Reserve Systema - approximately 2,000 national banks and 900 state banks. Member banks must subscribe to stock in their regional Federal Reserve Bank in an amount equal to 6 percent of their capital and surplus, half of which must be paid in while the other half is subject to call by the Board of Governors. The holding of this stock, however, does not carry with it the control and financial interest conveyed to holders of common stock in for-profit organizations. It is merely a legal obligation of Federal Reserve membership, and the stock may not be sold or pledged as collateral for loans. Member banks receive a 6 percent dividend annually on their stock, as specified by law, and vote for the Class A and Class B directors of the Reserve Bank. Stock in Federal Reserve Banks is not available for purchase by individuals or entities other than member banks."
So, the owners of the FED are simply other national and state banks. What is rather interesting is that this is no normal company stock! First, they are paid a perpetual annual dividend of 6% per the Federal Reserve Act of 1913 which is not a "law" in the technical sense that the FED implies. Second, apparently this "stock" is part of each member bank's balance sheet as only half is "paid in" to the FED and the "other half is subject to call" by the FED. The FED restates this here.
While many become quite alarmed by the mandated 6% dividend paid, please understand that this is just a babbling brook when compared to the powerful monetary torrents of fractional reserve banking and FED Open Market Operation's money creation/destruction as explained in Part 6. As I described here, in 2007 the FED earned $40.3 Billion from its security holdings, but passed $34.6 Billion to the government. The FED spent $3.3 Billion to run itself. Taking into account its revenue stream, I estimate the FED paid out roughly "just" $3.9 Billion in dividends in 2007.
Why do the owners of the FED not matter?
Well, as stated, the member banks have no ownership or decision-making rights as the shareholders of a corporation would. Their sole privilege is to influence the selection of several of the Reserve Bank division's directors who in turn may have a chance to influence a rotating chair on the FOMC (Federal Open Market Committee) or appoint the Federal Advisory Council. As seen in the below diagram, this is not much power at all.
So, why does who owns the FED matter?
Well, no American citizen, nor the American government, nor any other non-bank entity or corporation for that matter, can purchase stock. The FED is truly a "bank of banks" ruled by a small oligarchy of prominent central bankers. Ben Bernanke is just the current ringleader paraded out to the public. Given the vast power of the FED, I can claim with confidence that the Federal Reserve is a banking cartel. It has a monopoly over the money supply and credit of the United States. It is at best an unconstitutional quasi-governmental entity setup by the Federal Reserve Act of 1913. For an easy-to-understand FED analogy, please read "Ron Paul's rEVOLution Versus the "One Ring" of the Federal Reserve".
Note the lack of limits the government has on auditing or overruling the FED.
- "Monetary policy is exempt from audit by the Government Accountability Office." -(page 15/146)
- "The Federal Reserve is an independent agency, and that means, basically, that there is no other agency of government which can overrule actions that we take." -Alan Greenspan when asked by Jim Lehrer about the FED's relationship with the President.
[There is a movement to audit the FED as I last reported on here: STATUS REPORT: Ron Paul's Audit the FED Act, HR 1207 and S 604 ]
For the best estimate on the FED ownership please see below, note that the top 4 banks Bank of America, JP Morgan Chase, Citigroup, and Wells Fargo-Wachovia, control roughly 54% of the stock of the Federal Reserve Bank, and the top 10 banks, including Government Sachs, HSBC, and the Bank of New York, would control roughly 70% of the stock.
[My dataset is here, but it won't be readable unless you download the XLS file and view it. I encourage anyone to check my work and offer comments.]
Of course, as I explained above, stock ownership in the FED does not confer control over the FED, but it is just more information pointing at the entire immoral cartel. There is complete documentation on the FED's website that it has acted in secret in the past to suppress the price of gold, and plenty of evidence that the same is going on today. Even Ben Bernanke admitted the FED caused the Great Depression! Since 1990, the FED has been orchestrating the outright ROBBERY of the savings of the American people by STEALING from the dollar's purchasing power.
The FED cartel is the arch-enemy not just of the free market, but of every living adult and child on the planet. It must be destroyed and the money powers returned to We the People.
Not nationalized. Not just audited. Not just more regulated. Destroyed. This topic must be debated in not just the halls of Congress but across the land, and there are plenty of viable replacement plans - mine is summarized here.
For the Republic!
Jake Towne is running for U.S. Congress in Pennsylvania's 15th District in the 2010 election as a citizen unaffiliated with any political parties. Jake also writes at www.LibertyMaven.com and www.CampaignForLiberty.com. A master campaign presentation for internet viewing is available. [Reach the Author Here!]
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We the People of the United States, in Order to form a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defence, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity, do ordain and establish this Constitution for the United States of America.
As always, unlike the NFL, the author grants full permission to allow any accounts of, rebroadcasts, retransmissions, repostings of this article to your blog or anywhere else in order to promote the Restoration of our Republic.
Veritas numquam perit. Veritas odit moras. Veritas vincit. Truth never perishes. Truth hates delay. Truth conquers.
Tu ne cede malis sed contra audentior ito. Do not give in to evil but proceed ever more boldly against it.
Summary of Articles and Bibliography for Jake Towne, the Champion of the Constitution (6/8/2009)
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Other Articles on this subject by the Author
MY PROPHECY - The Federal Reserve Will End! A Money Matrix Addendum
R.I.P. - The London Gold Pool, 1961-1968
Unlocking the Money Matrix - The Real Interest Rate (PART 12/15)
STATUS REPORT: Ron Paul's Audit the FED Act, HR 1207 and S 604
Ron Paul's rEVOLution Versus the "One Ring" of the Federal Reserve
Silver and Gold ARE Money (PART 1/2)
The Money Matrix - How the FED Works (PART 6/15)
The Federal Reserve - A Good Company to Work For?
Bernanke's Great Lie - The "Gold Standard" and the Great Depression (PART 2/2)
©2009 Jake Towne, the Champion of the Constitution, all rights reserved. You must have written permission from the author in order to republish this work.
Published: Sunday, June 21, 2009
Last modified: Monday, June 22, 2009
The views expressed in this article are those of Jake Towne, the Champion of the Constitution only and do not represent the views of Nolan Chart, LLC or its affiliates. Jake Towne, the Champion of the Constitution is solely responsible for the contents of this article and is not an employee or otherwise affiliated with Nolan Chart, LLC in his/her role as a columnist.
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Reader Comments:
Posted By: jim wheeler
Date: 2009-06-22 03:23:39
The Federal Reserve Bank is a consortium of 9 associated banks with the Rothschilds at the head: (It is owned mainly by foreigners)
$1. Rothschild Banks of London and Berlin
$2. Lazard Brothers Banks of Paris
$3. Israel Moses Seif Banks of Italy
$4. Warburg Bank of Hamburg and Amsterdam
$5. Lehman Brothers of NY
$6. Kuhn, Loeb Bank of NY (Now Shearson American Express)
$7. Goldman, Sachs of NY
$8. National Bank of Commerce NY/Morgan Guaranty Trust (J. P. Morgan Bank - Equitable Life - Levi P. Morton are principal shareholders)
$9. Hanover Trust of NY (William and David Rockefeller & Chase National Bank NY are principal shareholders)
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Posted By: Jake Towne, the Champion of the Constitution
Date: 2009-06-22 05:23:19
Dear Jim Wheeler -
Thanks for your comment
I have seen this before. If the above is true (do you have proof? - I wasnt able to find it) I think it was only true many years ago.
Many of the individuals that owned the above banks - Warburg, Kuhn, Loeb, Morgan, Rockefeller - did have an influence on the FED via Jekyll Island of course.
Posted By: Jim Wheeler
Date: 2009-06-22 08:52:24
No problem thanks Jake, people need to realize that some of the offices have changed for example Rothschild Bank has office in London but not Berlin anymore. Or JP Morgan merged with Chase and it is now JP Morgan Chase. The people that work with the Fed or are supporters will try to claim that because there isnt an office for the Rothschild bank in Berlin now that it is a conspiracy theory.
Gary Kah is a prominent figure with great connections in many high places and he was one of the people to bring the ownerships of the banks to life. IT is no mystery that the Rothschilds and Rockefellers are banking dynasties from centuries ago and are reported to be worth hundreds of trillions. When JP morrgan himself died it was discovered in his will Rothschild owned the majority of what was thought to be owned by Morgan. Same thing with Rockefeller, they are high order soldiers of the Rothschild banking cartel. Here is some info below.
Kah specifically claims that foreigners directly own the New York Federal Reserve Bank, the largest and most important of the twelve regional Federal Reserve Banks. Through the N.Y. Federal Reserve the international conspirators control the entire Federal Reserve System and gain its profits. In his book En Route to Global Occupation Kah also plays up the Fed’s alleged role in the New World Order plot. Mullins agrees on the importance of the N.Y. Fed, but claims that while domestic commercial banks own it, in reality a secret European banking club actually controls its policies from a distance.
Posted By: Jake Towne, the Champion of the Constitution
Date: 2009-06-22 14:40:01
I would like to post an very thoughtful letter from a reader and my reply to her questions....
Dear Mr. Towne:
In regards to your essay,"Who Owns the Fed", I have a question. Why did you not mention the unmentionables: the 30% others on your pie chart? Are the Others an aggregate of foreign banks, being foreign nationals or royal families? It is curious that you pin the blame of the cartel on corporate banking institutions in the US, and not on the bondholders of those banking institutions: "So, the owners of the FED are simply other national and state banks." The owners of the Fed are the same families that own the banks, are they not, Mr. Towne?
"Well, no American citizen, nor the American government, nor any other non-bank entity or corporation for that matter, can purchase stock. The FED is truly a "bank of banks" ruled by a small oligarchy of prominent central bankers." What? Ridiculous. The controllers of the prominent central bankers are those in charge of the Fed, not the bankers who follow orders! Does the name Rockefeller ring a bell?
At the bequest of the BIS, the Fed was to be audited in the summer of 2008. George Bush asked the BIS to wait until after October 1, the end of the fiscal year for the government finances. All hell breaking lose intervened in September/October. Now the useful idiots are clammering to have the taxpayers pay for the audit?
[link edited for length]
(reader comment): The theory tha
t the national debt is something that is to be paid off is a hoax perpetrated by the privately owned Federal Reserve system. The ownership comes from Europe. Ref. SECRETS OF THE FEDERAL RESERVE by Eustace Mullins (available as an ebook).
Every “dollar” (FRN) in circulation has been created as a principle of a Bill, Bond, or Note given to the FR by Congress so that the banking system will honor overdrafts (create a line of credit) made by the U.S. government (Congress).
The understood theory given to the U.S. citizen is that the principle will be repaid to the Fed with interest. The amount of the interest has never been created. The interest can only be paid by creating more principle which requires an ever increasing amount of interest which is to be paid in the future.
If an individual promised to pay you a high rate of interest on money that you would loan to him to invest, but the activities of the individual did not have a business operation that would make a profit to generate the interest, it would be called a Ponzi scheme and be shut down before the week is over.
The FR holds approximately one-half of the National Debt within their vaults. The interest paid on the National Debt is about $500 Billion per year.
The FR has been established and is operated as a self-destructive fraud. Ref. [link edited for length] 0Aor use a search engine for INHERENT NATIONAL BANKRUPTCY.
Last year the national budget increased about 7 percent. The interest on the national debt increased about 15 percent. The increase of debt-interest is exponential and becomes an increasing percentage each year.
A recent claim on the internet is that the Bank of International Settlement (BIS, a Rothschild owned entity) is going to audit the Fed."
If you were working in the best interests of our Republic, then why forego to mention the foreign owners of the Fed Reserve? Why forego to mention the noxious influence of the BIS, which bank has replaced the US Treasury with the IMF? Why forego to mention the IMF issuing bonds and allowing BRIC countries to swap US Treasuries for IMF bonds?
If you are working for a restoration of the Republic, and insist the answer it to audit and close the Fed, then to which governing body would you support giving the power to coin and regulate currency?
I would not be in the least surprised if your answer is to "restore the power to the US Treasury". That answer is treasonous at this venue in the endgame of fiat currencies: the power to coin and regulate currency must be restored to the US Congress as appropriated by the Constitution.
Posted By: Jake, the Champion of the Constitution
Date: 2009-06-22 14:44:04
Thank you for writing back! I posted your comment anonymously of course!! in the nolanchart.com article because they are quite intelligent and I feel many others might be thinking along the same lines as you are. On a couple I can't answer them fully, please consider educating me as I am obviously interested in this topic.
Let me try to answer your questions as best I can:My answer: There are about 1000 other small American banks, I've attached my Excel sheet. Most of them own extremely small shares (<<1%) of the FED. This web address from the FED denotes the entire list, but you have to remove the "SNB" State Non-Member banks.
Question: "Why did you not mention the unmentionables: the 30% others on your pie chart? Are the Others an aggregate of foreign banks, being foreign nationals or royal families?"
[link edited for length]
Your comment about foreign nationals and royal families is an interesting one. To answer it, you would have to review all of the bond- and share-holders for each bank. For instance Prince bin Talal of Saudi Arabia bought a big chunk of Citibank.
[link edited for length]
If you see the chart in the article, notice that 2 banks - JPMorgan Chase and Citibank has large amounts of foreign assets.
Question: "The owners of the Fed are the same families that own the banks, are they not, Mr. Towne?"Answer: Well, if you own the banks, then to some extent they have control over the FED. Who owns the banks? I do not know. Unfortunately, there is a lot of time necessary to do this research, and instead I am running for Congress. Hopefully others will take on this challenge. :)
I wrote: "Well, no American citizen, nor the American government, nor any other non-bank entity or corporation for that matter, can purchase stock. The FED is truly a "bank of banks" ruled by a small oligarchy of prominent central bankers." Question: What? Ridiculous. The controllers of the prominent central bankers are those in charge of the Fed, not the bankers who follow orders! Does the name Rockefeller ring a bell?My answer: Good point here - what I was trying to convey that likely you, Joe Public (and certainly not I) certainly do not have enough capital to influence the FED. To a large extent Bernanke and the FOMC do have autonomy - all they have to do is somehow get installed via the FED's complicated electoral system - some of which requires Senate confirmation and most does not. This is the "small oligarchy" I was referring to, which MAY include Mr. Rockefeller - hmmm, isn't there a Rockefeller from West Virginia in the US Senate too? :)Question: "If you were working in the best interests of our Republic, then why forego to mention the foreign owners of the Fed Reserve? Why forego to mention the noxious influence of the BIS, which bank has replaced the US Treasury with the IMF? Why forego to mention the IMF issuing bonds and allowing BRIC countries to swap US Treasuries for IMF bonds? If you are working for a restoration of the Republic, and insist the answer it to audit and close the Fed, then to which governing body would you support giving the power to coin and regulate currency?"My answer: It is true that the BIS and IMF (supra-national bodies) interact with the FED. Many of the swap operations that the ESF and FED have executed over the years would definitely give more concrete evidence as to the true degree of control these supernational bodies have over the FED. However, this information is not public - or at least I have not read it. Do you have further evidence on the foreign owners of the FED? Please feel free to share it with me.
I have read Secrets of the Federal Reserve by Mullins. Worthwhile read although he certainly didn't get it 100% correct - at that time the FED was a lot more secretive then they are now (FYI, they are even good at returning emails) due - most likely - to the outrage at having our gold stolen by FDR
[link edited for length]Answer: The United States Congress as listed in the US Constitution. This is our law, and its also a big reason why I am running for Congress. However, note that in the Constitution, gold and silver coin are specifically listed as lawful money, and the extent of Congress's power is just to COIN or mint the money. Their job is to protect the integrity of the monetary unit - ie, X grams of silver.
Question: "which governing body would you support giving the power to coin and regulate currency?"
The Constitution is very specific in keeping two other powers completely separate, I think it can be summarized at this statement -- Although Congress has the right to BORROW on the credit of the USA, they do NOT have the right to EMIT BILLS OF CREDIT - which is what the Federal Reserve Notes are. Obviously, the FED can't be ended overnight, but that's the direction we need to move in.
I heavily support a national debate on this topic, and its a major reason why I am running for US Congress. You may view my platform on honest money here, it's a little detailed but judging by the complexity of your questions, you will understand it. Feel free to read the other articles I listed at the bottom of my article for more information or ask any other questions
[link edited for length]
http://www.nolanchart.com/article6558.html
Thanks a lot for your comments and questions!!!
Jake
Posted By: Edward Ulysses Cate
Date: 2009-06-22 21:11:52
It gets even more interesting if you break down the companies to their major holders:
Bank of America
JP Morgan Chase
Citigroup
PNC Financial
NY Bank Mellon
U S Bank
SunTrust
Breakdown not available on HSBC
Golman Sachs
Fed website says "We are owned by our member banks!"
So this breakdown shows who controls those member banks.
Now you know why Barclays wants to hide under Black Rock.
BlackRock.
Posted By: Edward Ulysses Cate
Date: 2009-06-22 21:30:10
Oops. Missed Wells Fargo above. There's two links here, as data was before merger. You can see the interest the major holders had in merging the two banks into one plantation. The book "The Best Way to Rob a Bank is to Own One," by William K Black, details how to merge two failed institutions and quickly thereafter show a profit. Remember earlier this year?
Keating also bragged that his "accounting department was a profit center."
Posted By: Jake, the Champion of the Constitution
Date: 2009-06-23 07:58:16
Dear Edward Ulysses Cate -
Wow, thanks for sharing this!! Like I said in the comment above, "incestual" might be the best-fit description of the current bank/FED/gov't relationship.
It's interesting that the gov't doesn't show up yet in the present-day stats.
..... now that I am wondering about it, I wonder if those index mutual funds have a mechanism for the mutual fund owner to vote - I used to own several a few years back and never ever saw a proxy form - or opportunity to vote by proxy, though it would be difficult - a lot of corporations!! It seems a little fishy to me now that the mutual funds get to do the voting - for a managed fund it makes some sense - especially if this is specified in the prospectus, but not so much for the big index ones.
Posted By: Edward Ulysses Cate
Date: 2009-06-23 20:53:21
Jake: Perhaps this answers some of your questions.
Berkshire Hathaway Inc. - 2008 Annual Report
Page 4 of Chairman's Letter: 3rd paragraph from bottom of page.
By Warren Buffett [established agent of foreign money power]
"This means that our $58.5 billion of insurance “float” – money that doesn’t belong to us but that we hold and invest for our own benefit – cost us less than zero. In fact, we were paid $2.8 billion to hold our float during 2008. Charlie and I find this enjoyable."
I understand that the insurance business is different from managing stock, but when stock funds are able to vote the stock they hold for others for their own benefit (which may not be to the desired benefit of their customers); when they naked-short against their own customers and conceal their profits by bundling, executive management has gone mad. Thus they kill their own golden goose and all suffer from the madness. They've sold out their customers and their countrymen for a few dollars more.
Posted By: Pat
Date: 2009-07-18 11:38:30
I think there is very little gold left in Fort Knox--It has been aggressively "leased" leases are rolled over constantly--[stolen?] by the bullion banks--Goldman, JPM/Chase, Citi---the same organizations who have prior employees who are in Government /FED who "coincidentally" took away the protections of the Glass-Steagall Act, belong to the Council on Foreign Relations, implemented the unsustainable derivatives problem, and are raping the American people of their haqrd earned buying power.
Posted By: Jake Towne, the Champion of the Constitution
Date: 2009-07-18 13:25:27
Dear Pat -
You may be correct, perhaps if the "Audit the FED" bill passes we will actually know the answer. Hard to fake gold :)
You may also be interested to read this article
http://towneforcongress.com/economy/unlocking-the-money-matrix-the-summers-gold-price-suppression-scheme-part-1315