Friday, December 13, 2013 8:37
Most Americans, if they have heard anything at all about the Federal Reserve, believe it is an agency of the United States Government. This is false. The Federal Reserve is not “owned” by anyone, it is a profit-making institution. It is considered an independent central bank because its monetary policy decisions do not have to be approved by the President or anyone else in the executive or legislative branches of government, it does not receive funding appropriated by the Congress, and the terms of the members of the Board of Governors span multiple presidential and congressional terms. Below you will see charts that break down the history of the Fed and it’s owners and shareholders back to the Federal Reserves Founding in 1913..
Before we get into the Federal Reserves chain of command that you will see below, I want to give you some history on the Feds monetary policy. Let’s start with the first and only audit of the Federal Reserve in it’s 100 year history. This is the victory that Ron Paul was responsible for, yet Mainstream Media covered it all up.
In a rare moment of bipartisanship, the House overwhelmingly passed a bill by Rep. Ron Paul (R-Texas) to audit the Federal Reserve.
The first ever GAO (Government Accountability Office) audit of the Federal Reserve was carried out due to the Ron Paul, Alan Grayson Amendment to the Dodd-Frank bill. Jim DeMint, a Republican Senator, and Bernie Sanders, an independent Senator, led the charge for a Federal Reserve audit in the Senate.
Ben Bernanke, Alan Greenspan, and various other bankers vehemently opposed the audit and lied to Congress about the effects an audit would have on markets. Nevertheless, the results of the first audit in the Federal Reserve’s nearly 100 year history were posted on Senator Sander’s webpage on July 21 2011.
What was revealed in the audit was startling:
The list of institutions that received the most money from the Federal Reserve can be found on page 131 of the GAO Audit and are as follows..
Citigroup: $2.5 trillion ($2,500,000,000,000)
Morgan Stanley: $2.04 trillion ($2,040,000,000,000)
Merrill Lynch: $1.949 trillion ($1,949,000,000,000)
Bank of America: $1.344 trillion ($1,344,000,000,000)
Barclays PLC (United Kingdom): $868 billion ($868,000,000,000)
Bear Sterns: $853 billion ($853,000,000,000)
Goldman Sachs: $814 billion ($814,000,000,000)
Royal Bank of Scotland (UK): $541 billion ($541,000,000,000)
JP Morgan Chase: $391 billion ($391,000,000,000)
Deutsche Bank (Germany): $354 billion ($354,000,000,000)
UBS (Switzerland): $287 billion ($287,000,000,000)
Credit Suisse (Switzerland): $262 billion ($262,000,000,000)
Lehman Brothers: $183 billion ($183,000,000,000)
Bank of Scotland (United Kingdom): $181 billion ($181,000,000,000)
BNP Paribas (France): $175 billion ($175,000,000,000)
and many many more including banks in Belgium of all places.
The following is the amount of stimulus that the Fed has injected into the economy since 2008, as you will notice, each year the Fed has to continually stimulate the economy more and more each year. You will be able to see that in 2012 the Federal Reserve committed to 85 Billion a month which is still flowing today. How can this be sustainable?
November 25, 2008
Fed unveils $800 billion plan to bolster lending, housing
With financial markets still not working smoothly two months after almost shutting down, the Federal Reserve unveils steps aimed at lowering borrowing costs for consumers and home buyers.
The central bank announces plans to purchase up to $100 billion in direct debt of Fannie Mae, Freddie Mac and the Federal Home Loan Banks, along with up to $500 billion of mortgage-backed securities backed by Fannie, Freddie and Ginnie Mae (the government-sponsored enterprises, also known as GSEs).
March 18, 2009
Federal Reserve to buy $300 billion in longer-term Treasury bonds
The Federal Reserve says it will buy $300 billion in longer-term Treasury bonds to help arrest a deepening slide in the U.S. economy, a surprise move that send stocks soaring and triggers violent moves in other markets. The Federal Reserve’s move signals it will boost the size of its balance sheet to more than $4 trillion.
Following the Fed decision, gold futures and U.S. stocks rally, while the dollar plunges against other major currencies. In the bond market, Treasury prices soar, sending yields plummeting by the largest amount since 1987.
- November 3, 2010
Federal Reserve to buy $600 billion in bonds
The Federal Reserve pledges to start a controversial new $600 billion bond-buying spree to rescue the economy from its current doldrums. The FOMC says it will buy up to $600 billion in long-term Treasurys until the end of June 2011, including about $75 billion this month.
This is the second time the Fed engages in quantitative easing, as it snapped up $1.7 trillion in mostly housing-related assets between December 2008 and March 2010.
- September 21, 2011
Federal Reserve moves to lower interest rates on consumer loans with a $400 billion debt-swap program
In a statement, the Fed says it will buy $400 billion of Treasury securities in the 6- to 30-year range and sell an equal amount of maturities of 3 years or less. The purchases to be completed by the end of June 2012. The Fed also announces a new plan to purchase agency mortgage-backed securities with proceeds of maturing securities. The Dow Jones Industrial Average closes down 283.82 points, or 2.5%, at 11,124.84.
- June 20, 2012
Fed extends ‘Operation Twist’
The Fed says it will extend its holdings of long-term government bonds by $267 billion in another effort to bring down borrowing costs.
- September 13, 2012
Fed to launch QE3 by buying mortgage securities
By an 11-to-1 vote, the Federal Reserve decides to launch a third round of open-ended bond purchases — so-called QE3 — saying it will buy $40 billion of agency mortgage-backed securities per month.
The Fed also says it will keep its so-called Operation Twist in place, which consists of swapping short-dated securities for longer-term securities, as well as reinvesting the proceeds of maturing securities.
- December 12, 2012
Fed to buy more bonds as it sets jobless target
The Federal Reserve announces a fresh bond-buying program worth $45 billion per month of longer-term Treasurys in another effort to reduce what the central bank calls an “elevated” unemployment rate.
Without the action, the Fed purchases would have been reduced at year-end when an existing program to swap short-term debt for longer-term Treasurys is set to expire.
- January 14, 2013
Bernanke downplays inflation risk of QE3
Federal Reserve Chairman Ben Bernanke plays down the fears of some more hawkish central bankers and investors that the Fed’s aggressive bond-buying program will lead to higher inflation. “I don’t believe significant inflation is going to be the result of any of this,” Bernanke says in a speech at the University of Michigan.
- May 22, 2013
Bernanke tells Congress ‘step down’ in QE could come soon
Federal Reserve Chairman Ben Bernanke tells Congress that the U.S. central bank could slow down its asset purchase program in the next few months. U.S. stocks slide with the Dow Jones Industrial Average dropping 80.41 points, or 0.5%, to 15,307.17.
- June 19, 2013
Bernanke says the central bank may scale back its bond purchases this year, depending on the economic outlook
Ben Bernanke says the Fed could begin to taper its purchase of bonds later this year, if the economy continues to improve as Fed officials expect. And the Fed could end the bond-buying completely sometime in the middle of next year, if everything goes well. The markets promptly sell off, as they did a few weeks ago when Bernanke first mentioned the possibility of a reduction in the $85 billion pace of bond purchases.
In an interview aired the day prior, President Barack Obama tells Charlie Rose that “Ben Bernanke’s a little bit like Bob Mueller, the head of the FBI, where he’s already stayed a lot longer than he wanted or he was supposed to.” Rumors about Bernanke’s career plans had already been swirling, but the President’s statement forces Fed watchers to start seriously considering a post-Bernanke era. Bernanke has served as chairman of the Fed since 2006, with his second term set to end on Jan. 31, 2014.
- September 18, 2013
Fed decides not to taper
The Federal Reserve holds its asset purchase program steady, putting off any decision for tapering until later in the year in a decision that surprises markets. By a vote of 9-to-1, the Fed holds its bond-buying program at $85 billion, citing tighter financial conditions. S&P 500, Dow rise to record closing highs.
The history of QE shows that the Fed increases the amount of QE each year. This is unstainable!
As you will see in the next 2 videos, Ron Paul continues to ask for more transparency from the Federal Reserve. Then Dr Paul goes on to discuss Janet Yellen, Yellen will replace Ben Bernanke as chairman of the Federal Reserve in 2014. Yellen claims to have an appetite for transparency, can the American people believe her?
This Video is Janet Yellen explaining why she will continue to print more currency and why she opposes more transparency from the Fed. Janet Yellen will be Ben Bernanke on steriods. Will there ever be another audit of the Fed? It’s highly unlikey with the players on the Federal Reserve stage at this time.
Now onto the history of the Federal Reserve, it’s founders and it’s share holders. I have included the source of the information above each chart.