How to end the Fed

[Sassy]

How to End the Fed
Mar 9th, 2011  
By Gary North  


Things are not always as complicated as they seem. With respect to the Federal Reserve System, it is a deliberate mystery. It was deliberately designed in 1910 to deceive the public, who were opposed the idea of a central bank. The conspirators who met on Jekyll Island in November 1910 knew this. They did good work from their point of view. They concealed the beast.

The general public today knows little about the FED. Prior to Ron Paul's Presidential run in 2007-8, far fewer people understood it.

I have been asked: "How could we get rid of the Federal Reserve? What will replace it?" The answer: either the free market or Congress.

People who think of themselves as free market people often are not. The tax-funded public schools and the state-regulated and accredited university faculties have taught that the modern system of intrusive civil government is necessary for an orderly society. People cannot imagine a market-based society.

There is an old saying, "You can't beat something with nothing." But the free market social order is not nothing. It is expanding around the world, which is why the world is getting richer.

At the Federal level, a free market social order in banking existed prior to 1914. That was back when the dollar was worth over 20 times what it is worth today. (On this point, see the inflation calculator of the Bureau of Labor Statistics.)

We can go back to that system. We will go back to it. The question is: When? The other question is: At what price?

Ending the Fed By Law

Ron Paul could introduce a bill to end the Federal Reserve System. He could call it: "The Monetary Liberty Act." It would get known as the "End the Fed Act." Here is what the text might say:

The Federal Reserve Act of 1913 is hereby repealed. So are all subsequent acts based on the Federal Reserve Act of 1913.

All authority of the Federal Reserve System to act in the name of the United States government is hereby revoked.

The assets of the Board of Governors of the Federal Reserve System, which are already the property of the United States Government, are hereby transferred to the Department of the Treasury. This includes all of the assets listed on the balance sheet of the Federal Reserve System.

The twelve (12) privately owned Federal Reserve Banks will return all assets held in trust for the United States government within thirty (30) calendar days of the signing of this bill into law.

The gold reserves of the United States government that are held in storage by the Federal Reserve Bank of New York will be transferred to the Government's depository at Ft. Knox, Kentucky, within one calendar year after this bill becomes law. The Government Accountability Office will conduct an inventory of the gold held in storage by the Federal Reserve Bank of New York before and after this transfer.

The Board of Governors will vacate the premises of the Federal Reserve building within thirty (30) calendar days of the signing of this bill into law.

Any pension fund assets of the employees of the various Federal Reserve Banks will remain under the control of those banks. All pension obligations under the authority of the Board of Governors of the Federal Reserve System are hereby transferred to the Department of the Treasury, to be administered under the retirement program of the Department of the Treasury.

This is simple.  The Board of Governors of the Federal Reserve System is a government agency. Its authority would be transferred to the U.S. Treasury.

The dozen Federal Reserve Banks are privately owned. All authority of these 12 banks that derives from their connection to the Board of Governors will cease. If they can make a profit, fine. If not, equally fine. The free market will determine which will survive and which will not.

Is this radical? Not at all. There are two historical precedents: the refusal of Congress to renew the charter of the Bank of the United States in 1811, and the refusal of Congress to renew the charter of the Second Bank of the United States in 1836. Both of them went bust.

The standard response is that there must be independence between the Federal Reserve System and the U.S. government. Let us apply this to other agencies:  continued at link below

http://whiskeyandgunpowder.com/how-to-end-the-fed/

[muldoon]

I think it's gonna end all right.  I think thats the exit strategy. 

All of the shenannigans of the past few years have resulted in the fed absorbing all the bad debt.  When the fed's sole job is to be the bagholder, it's pretty clear what the plan is.  The clues are out there and plain as day ...  I dont rant about them anymore, no one ever cared or did anything anyway.  Take this today,

http://finance.yahoo.com/tech-ticker/got-%28more%29-stimulus-bill-gross-doesn%27t-think-the-economy-is-%22self-sustaining%22-536002.html

He signaled in Feb and in March

http://www.pimco.com/Pages/Devils-Bargain.aspx
http://www.pimco.com/Pages/Two-Bits-Four-Bits-Six-Bits-a-Dollar.aspx

Here is the largest bond holder in the world, who has been front running every fed auction for years playing the game now saying he is exiting us treasuries, going to cash and looking overseas.  He is the fox in the henhouse realizing there is not many more hens to steal and time to move off to another henhouse. 

Sure, the fed will crack.  There is not much doubt about it.  However, this plan above.  Let's think about this. 

All authority of the Federal Reserve System to act in the name of the United States government is hereby revoked.

The assets of the Board of Governors of the Federal Reserve System, which are already the property of the United States Government, are hereby transferred to the Department of the Treasury. This includes all of the assets listed on the balance sheet of the Federal Reserve System.

The twelve (12) privately owned Federal Reserve Banks will return all assets held in trust for the United States government within thirty (30) calendar days of the signing of this bill into law.

The fed's assets are debt.  Specifically toxic loans that smell like a pile of rotted fish.  The reason they have those asses is because there is no market for them because their value is zero.  They bought them to allow the other banks to survive. 

The gold reserves of the United States government that are held in storage by the Federal Reserve Bank of New York will be transferred to the Government's depository at Ft. Knox, Kentucky, within one calendar year after this bill becomes law. The Government Accountability Office will conduct an inventory of the gold held in storage by the Federal Reserve Bank of New York before and after this transfer.

Quick look at the feds balance sheet, the H4.1 shows gold stock as valued at 11,041 (in millions).  so...  11 billion. 
http://www.federalreserve.gov/releases/h41/current/

2 trillion in liabilities, 11 billion in gold assets. 

The Board of Governors will vacate the premises of the Federal Reserve building within thirty (30) calendar days of the signing of this bill into law.

Any pension fund assets of the employees of the various Federal Reserve Banks will remain under the control of those banks. All pension obligations under the authority of the Board of Governors of the Federal Reserve System are hereby transferred to the Department of the Treasury, to be administered under the retirement program of the Department of the Treasury.

Yes, let's honor their pension program.  It's part of the no banker left behind bill. 


..

How about no. 

[ScottA]

Even if the fed ends it will be replaced in a few years with a new central bank. Look at history and see how it has repeated itself over and over.

The debt the fed owns has no value on the open market but it's not worthless either. Many of these loans will be repaid to some extent. if you consider the money used to create these debts was created out of thin air then anything they get back is pure profit, less the overhead it took to write and manage the loans.

So whats really going on here? Theft

Some people already made a great deal of money by shafting alot of other people. Now they are sweeping the paper trail under the rug so to speak. Once the government owns all these so called bad loans no one will care about all the money that was stolen. That problem will be gone forever like the ark of the covenant.

[Sassy]

Yeah, I read about PIMCO today - it all is pretty sickening, isn't it?  A house of cards...  I remember when I read the book Creature from Jekyll Island and started talking about this stuff a few years ago - people thought I was nuts - maybe they still do   

All those big guys who got bailed out have taken the money & run...  wonder if the $11 billion in gold is just gold coated lead bars...  wouldn't be surprised.  But, hey, you better pay the tax on the $10 you made in interest, little guy!  Or will fine you big time & maybe even put you in prison for cheating on your taxes!

Enron & the S&L's were amateurs compared to what has been going on since then