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Brief history of the Federal Reserve. Rather shocking

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posted on Jun, 9 2010 @ 03:09 PM
The Federal Reserve was established by Woodrow Wilson and the 63rd US Congress. It came from the Federal Reserve Act.

According to Title 12 > Chapter 3 > Subchapter II > S 248b

The Board shall order an annual independent audit of the financial statements of each Federal reserve bank and the Board.

From 1913 through 1921 it was audited annually by the U.S. Treasury Department (It is also the tenure of president Woodrow Wilson). But in 1921 the 67th US Congress passed the Budget and Accounting Act of 1921 which allowed the president to appoint a Director of the Budget who was to check all expenditures of the Executive Department. This included the Federal Reserve. It was later renamed the Government Accountability Office which was in charge of independent audits of the Federal Reserve System.

This came to an end in 1933 with the Banking Act of 1933 when Congress removed the Federal Reserve Board of Governors from the Government Accountability Office jurisdiction. From 1933 to 1952 audit teams from the twelve Federal Reserve Banks performed the annual examination of the Board of Governors books.

Beginning in 1952 and lasting until 1978, the BOG(Board of Governors), under authorization from Congress decided to employ national recognized accounting firms to conduct audits of itself. The question here is, who pays for these audits? This barred GAO from auditing the Federal Reserve and only allowed independent private firms to audit the Fed.

In 1978 the Congress passed the Federal Banking Agency Act 31 US Code '714. This act did many things, but most importantly it placed the Federal Reserve back under auditing authority of the GAO. GAO does not have rights to all aspects of the Federal Reserve System.

(1) transactions for or with a foreign central bank, government of a foreign country, or no private international financing organization;
(2) deliberations, decisions, or actions on monetary policy matters, including discount window operations, reserves of member banks, securities credit, interest on deposits, and open market operations;
(3) transactions made under the direction of the Federal Open Market Committee; or
(4) a part of a discussion or communication among or between members of the Board of Governors and officers and employees of the Federal Reserve System related to clauses (1)–(3) of this subsection.

So let's review. From 1913-1921 there was very little auditing of the Federal Reserve, then from 1921-1933 it was audited, then from 1933-1978 it was not audited by and GAO which is meant for ACCOUNTING, it was finally audited again after 1978 and placed back under the administration of GAO, but with exceptions.

Just take a look at history and all of the important economic legislation and wars that were passed from 1933 to 1978. It spans from the 73rd to 95th US Congresses.

posted on Jun, 9 2010 @ 03:39 PM
Giving this thread a bump.

posted on Jun, 9 2010 @ 04:36 PM
I don't have much to add since it is a "Brief History" but i do want anyone who doesn't know the poison of the fed to be able to see well researched, recent post. Thanks

posted on Jun, 10 2010 @ 04:02 AM

Originally posted by eazyriderl_l
I don't have much to add since it is a "Brief History" but i do want anyone who doesn't know the poison of the fed to be able to see well researched, recent post. Thanks

Any additional info would be welcomed.

posted on Jun, 10 2010 @ 04:42 AM
This is the reason why US economy is very bad and expecting much worse in near future. See Federal Reserve is private. Then lend your goverment for printing your money. They collect your taxes. They bought many large banks, insurance companies and small banks. Due to this econmic crisis their assets developed from billions well over to 2 trillion $. I suspect there must be more. These are all corporations. Nothing but blood sucking vampires. They send troops to war in Iraq and their oil company buddies fill their wallet. They send to afghanistan, their stooge known as CIA gets money by poppy fields. Moreover plans are being made for Oil and gas pipeline. So again they benefit. While US carries on war , they lend your government money and get interests for that. By spoiling the economy they take your lands.
Bottomline is your government doesnt run Federal Reserve ,,

posted on Jun, 10 2010 @ 10:25 AM
reply to post by chaosinorder

The central bank of all countries virtually run their respective country. The only significant difference is that ours is private and the Board of Governors is private bankers, private bankers control our country.

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