The U.S. Federal Reserve Bank – How it Works, and What it Does – Money, Dollars, & Currency

geez watching this video is a waste of time.

First I have to make this remark: The president is the punching bag for
monetary policy even though he did not directly affect monetary policy.
The Federal Reserve is rarely mentioned on television as being the
mastermind of the economy. The second thing I need to say is that the
FEDERAL RESERVE was not created so that it profits. RATHER it was made so
that a select few private insider commercial banks become extremely
profitable as the result of their ties to the FEDERAL RESERVE. Basically
the purpose of the Federal Reserve is to allow banks to function as a
fractional reserve banking. These commercial banks control the Federal
Reserve and its policies. The FED, for example, carry out policies that
causes little banks to fail. These failed banks are taken over by the big
insider banks furthering the consolidation of the nation's monetary
reserve.

The manner in which banks create money ex niholo (out of thin air) is by
the use of a scheme called fractional reserve lending. When you rent a DVD
movie, you are explicitly told not to copy and distribute the movie. Why
is that illegal? Because if you copy and distribute the movie, the movie
creators would loose profit as a result of the EFFECT of the
counterfeiting. A long time ago it was decided that a deposit to a bank is
legally a loan to the bank. Since case law (though English, but USA courts
have followed almost similarly) established in 1811 (Carr vs Carr, in case
you were wondering) that the money you put in your bank account no longer
legally belongs to you – instead, you are lending it to the bank, which in
turn is paying interest on the loan. Money is a fungible item, and it is
not treated as a bailment when you deposit your money in the bank. This
means that if you have $100k and deposit it in a bank, the bank can loan
the $100k to someone else. What happens, though, is that the person that
borrows the money soon uses it to buy something, a house, perhaps and the
seller of the house takes that money and most likely deposits it in a bank,
perhaps the same bank or a different bank. What happens is that the bank
that just received that $100k will loan that money out again, and the
inflationary cycle continues. The Money supply expands. In this situation
there are two conflicting titles to the money 1)the person that deposits it
and 2) the person that borrows it. This is precisely why the FEDERAL
RESERVE was created, so that conflict can be reduced to a government/public
subsidy. Further problem is that as the money supply expands, only the
principle exist in the money supply. In order for every borrower to pay
back the debt, they need to depend on more credit to provide the interest
payments. If the credit stops the economy goes into a recession-depression,
and the money supply shrinks. This is officially called the BUSINESS CYCLE.
The money supply created by private banks is over 95% of the money in the
economy. Just take the M0 money supply and subtract from the M2 or M3.

THE INCOME TAX
NOW there are two conflicting ideas about where income tax revenues goes.
The most elaborate research is the Grace Commission Report:
"100% of what is collected isabsorbed solely by interest on the Federal
Debt … all individual income taxrevenues are gone before one nickel is
spent on the services taxpayers expectfrom government."
-Grace Commission report submitted toPresident Ronald Reagan – January 15,
1984

Then, there are reports from the government that show a pie chart of what
the income tax revenues is used for: 38% goes to HUMAN RESOURCES; 30%
goes to CURRENT MILITARY, 18% goes to PAST MILITARY; 8% goes to GENERAL
GOVERNMENT; and 6% goes to PHYSICAL RESOURCES.

I really honestly do not know which is true, but what i do know is that the
NATIONAL DEBT is fraudulent, because the treasury makes bonds which are
purchased by private commercial banks using money from the selling of old
bonds, and the multiplicity effect of the fractional reserve scheme. This
scheme is inflationary on both ends, the expansion of credit and the
introduction of new money into the system. If you are going to have an
inflationary system why not for the public good, for public programs?

Nothing about Boom & Bust cycles and the information insiders gets. Nothing
on interest the fed charges. Nothing on fractional reserve banks operate on
and that loans count as asset on the fractional reserve! To understand the
fed read or audio book THe Creature from Jekyll Island!

apparently Charles Osgood does not investigate any of the fairy tales he is
handed and told to read in front of a camera. he read a story but failed to
tell how it ends. and fiat currency can only end one way. collapse. look at
its track record. because we have never seen it in our life time ,we don't
believe it can happen..who created the crash of 29 who kept the money
supplyly tight for the next 10 years who controlled the great
depression,private banks like the fed reserve

A fool and his money will soon be parted. Don't be a fool. The private bank
is not federal . Look up senator Aldridge and the Aldridge act. Woodrow
Wilson quotes he has basically signed Americas death sentence. Ask about
exec order 1011. Kennedy signed it was killed and Johnston cancelled it.
What a ponzi game for sheep

Im sorry. I just don't trust this guy.

The foundational problem is the "Fractional" Reserve Banking scheme which
permits the money supply to grow to a multiple of the underlying reserves
of base money originally created by the central bank. Another name for this
method is "PONZI SCHEME" Banking. Once the money supply is tightened up (no
lending), the music stops, and everyone looks up to see what is crashing
down upon them. This Vatican scheme set up by the Knights of Malta, is
having the desired effect towards the Papal dream, NWO.

Yes, this video leaves a lot out. It's useless fluff.

Search for and watch "The American Dream Film-Full Length" and learn the
truth about the fed, not these bankster lies

Public relations propaganda from the beginning. The Fed isnt even part of
us government.

The Jews who own and control the "FED" sure pulled another load of shit
over the eyes of the American People with the creation of this Satanic
banking system. Here Osgood omits that the Banks created the problems that
the Fed was needed to clean up! A single Presidential Executive Order could
end the FED. It's too bad we will never have a President with the balls to
do it!

As usual, Charles Osgood provides an excellent narrative, and provides a
thorough history of the Fed.

gold coin….the value of the US dollar is trusted by those who still
subscribe to the fallacy the fed has been feeding the people through media.
its all a sham…there is no gold or ANYTHING backing the US dollar except
a bankrupt system. as soon as all the 3rd world countries that us US
currency realize this and lose trust in the dollar, inflation will sky
rocket and the value will plummet. Eventually printing more money will not
solve all the problems. Its like a tinder box ready to ignite.

You should publish that. The more that gets published exposing this vicious
Rothschild banksterism the greater hope for humanity there is.

The Canadian Dollar ;o)

It goes more like "Some bunch of assholes get together in a secret meeting.
They fudge a "Constitutional Amendment" that allows them to shred babies to
make yachts and mansions. Then they print until all dollars are worthless.
Then they conduct mass murder to disappear the disenfranchised."

Price stability? huh??? The prime purpose of any bank (especially THE FED)
is the redistribution of money from those who have earned it to an elite
class of individuals who are shareholders of the banks. I challenge anyone
to justify the charging of interest. Go ahead and give it your best shot if
you want to look foolish that is ;o)

Government fodder for the masses. The phrase "Great Depression" is never
uttered even once (oops), though the problem of bank runs is illustrated.
The present value of the dollar vs,1918 is never discussed. Wonder why.

total lies……. the Rothschild are behind every central banks all over
the wolrd, they even control the BIS, the IMF, the Wolrd Bank to create a
single world goverment to slavery the people though perpetual debt. We must
hang them all. We must do what Andrew Jackson did, "we must KILL THE BANK"

Yeah keep it humming buddy. I noticed I left out the part about paying the
Fed back with intrest