100 Years of the Federal Reserve System

(Federal Reserve System Logo)

Some hate it. Others accept it. Few understand it. We all use it. Today marks 100 years that the Federal Reserve System (FRS; pronounced as "farce") has been chartered with the United States via the Federal Reserve Act of 1913 to print Federal Reserve Notes (FRN) or more commonly known as U.S. Dollars (USD). Because the FRS loans money to the U.S. government at interest, the FRS operates at a profit and is thus a for-profit, private corporation. For those of us whom fully understand the concept of fractional reserve banking, protests seen in the End The Fed, Occupy and other social movements are becoming increasingly prominent and widespread.

First, fractional reserve banking allows the bank to loan 10 USD for every 1 USD deposited into its subsidiary banks established on our hometown street corners. This, of course, hyper inflates the USD and is partially why the currency has lost so much value in the neighborhood of 95% since 1913. It has never been that resources are becoming more expensive; it has always been that it is requiring more dollars to purchase the same items and services as the USD is reducing in value year-after-year.

(FRN as Legal Tender of $100USD)

Second, the FRS is part of an international central banking network that extends throughout the entire planet less a few countries. These few countries are often targeted as "enemies of the state," such as North Korea and Iran. After the 2008 financial crisis, the FRS transferred funds to other central banks around the world to keep them afloat similar to the way Greece is financially assisted as part of the European Union. This allows for what is called an "ecological financial balance." Both members of government and U.S. citizens have expressed displeasure with the "secretive" dealings in and around the FRS. That is because the FRS is the private financial arm of the United States, is immune from prosecution, and checks and balances from every branch of government.

Third, the obvious is that the FRS actively participates in complete equitable fraud. The problem is that we cannot do anything about the system itself. Why not? Banks cannot lend capital unless customers first deposit funds and assume a contractual relationship. Banks lend these funds based on the the principles of Particeps Criminis (Latin for "Partners in Crime"). According to all loan agreements between banks and their customers, the customers are participating in an equitable fraud themselves in order to obtain a loan, whether it is for personal use or a mortgage. In this manner, banks cannot function unless customers participate with them. Because of this, partners in crime cannot file suit in the Courts because the Courts cannot have anything do to with an illegal agreement.

(Book on Particeps Criminis)

What does this mean? As discovered by Canadian forensic accountant, Timothy Madden, this means the banks are meant to function as it is designed and it does not matter how much we complain about FRS and the Central Banks of the world because we are a shared partner in its endeavors. People have become so indulged about the security of their finances these days that a majority of people will invest in banking instruments in order to grow their holdings. What "the crowd" will choose to do is blame others for "screwing up" their society, yet few will take responsibility, accept that nothing will change until they themselves change, and go to peace by peaceful settlement of dispute.

"When I was a young man, I wanted to change the world. I found it was difficult to change the world, so I tried to change my nation. When I found I couldn't change the nation, I began to focus on my town. I couldn't change the town and as an older man, I tried to change my family. Now, as an old man, I realize the only thing I can change is myself, and suddenly I realize that if long ago I had changed myself, I could have made an impact on my family. My family and I could have made an impact on our town. Their impact could have changed the nation and I could indeed have changed the world." -- [Unknown Monk], Change the World, 1100AD.

(Timothy Madden interviewed about his discovery)