WHY THE FEDERAL RESERVE BANK SHOULD IMMEDIATELY BE ABOLISHED

On June 4, 1963, a little known attempt was made to strip the Federal Reserve Bank of its power to loan money to the government at interest. On that day President John F. Kennedy signed Executive Order No. 11110 that returned to the U.S. government the power to issue currency, without going through the Federal Reserve. Mr. Kennedy's order gave the Treasury the power "to issue silver certificates against any silver bullion, silver, or standard silver dollars in the Treasury." This meant that for every ounce of silver in the U.S. Treasury's vault, the government could introduce new money into circulation. In all, Kennedy brought nearly $4.3 billion in U.S. notes into circulation. The ramifications of this bill are enormous.

With the stroke of a pen, Mr. Kennedy was on his way to putting the Federal Reserve Bank of New York out of business. If enough of these silver certificats were to come into circulation they would have eliminated the demand for Federal Reserve notes. This is because the silver certificates are backed by silver and the Federal Reserve notes are not backed by anything. Executive Order 11110 could have prevented the national debt from reaching its current level, because it would have given the government the ability to repay its debt without going to the Federal Reserve and being charged interest in order to create the new money. Executive Order 11110 gave the U.S. the ability to create its own money backed by silver.

After Mr. Kennedy was assassinated just five months later, no more silver certificates were issued. The Final Call has learned that the Executive Order was never repealed by any U.S. President through an Executive Order and is still valid. Why then has no president utilized it? Virtually all of the nearly $6 trillion in debt has been created since 1963, and if a U.S. president had utilized Executive Order 11110 the debt would be nowhere near the current level. Perhaps the assassination of JFK was a warning to future presidents who would think to eliminate the U.S. debt by eliminating the Federal Reserve's control over the creation of money. Mr. Kennedy challenged the government of money by challenging the two most successful vehicles that have ever been used to drive up debt - war and the creation of money by a privately-owned central bank. His efforts to have all troops out of Vietnam by 1965 and Executive Order 11110 would have severely cut into the profits and control of the New York banking establishment. As America's debt reaches unbearable levels and a conflict emerges in Bosnia that will further increase America's debt, one is force to ask, will President Clinton have the courage to consider utilizing Executive Order 11110 and, ifso, is he willing to pay the ultimate price for doing so?

Executive Order 11110 AMENDMENT OF EXECUTIVE ORDER NO. 10289

AS AMENDED, RELATING TO THE PERFORMANCE OF CERTAIN FUNCTIONS AFFECTING THE DEPARTMENT OF THE TREASURY

By virtue of the authority vested in me by section 301 of title 3 of the United States Code, it is ordered as follows:

Section 1. Executive Order No. 10289 of September 19, 1951, as amended, is hereby further amended-

By adding at the end of paragraph 1 thereof the following subparagraph (j):


(j) The authority vested in the President by paragraph (b) of section 43 of the Act of May 12,1933, as amended (31 U.S.C.821(b)), to issue silver certificates against any silver bullion, silver, or standard silver dollars in the Treasury not then held for redemption of any outstanding silver certificates, to prescribe the denomination of such silver certificates, and to coin standard silver dollars and subsidiary silver currency for their redemption

and --

Byrevoking subparagraphs (b) and (c) of paragraph 2 thereof.

Sec. 2. The amendments made by this Order shall not affect any act done, or any right accruing or accrued or any suit or proceeding had or commenced in any civil or criminal cause prior to the date of this Order but all such liabilities shall continue and may be enforced as if said amendments had not been made.

John F. Kennedy The White House, June 4, 1963.

Of course, the fact that both JFK and Lincoln met the the same end is a mere coincidence.

Abraham Lincoln's Monetary Policy, 1865 (Page 91 of Senate document 23.)

Money is the creature of law and the creation of the original issue of money should be maintained as the exclusive monopoly of national Government.

Money possesses no value to the State other than that given to it by circulation.

Capital has its proper place and is entitled to every protection. The wages of men should be recognised in the structure of and in the social order as more important than the wages of money.

No duty is more imperative for the Government than the duty it owes the People to furnish them with a sound and uniform currency, and of regulating the circulation of the medium of exchange so that labour will be protected from a vicious currency, and commerce will be facilitated by cheap and safe exchanges.

The available supply of Gold and Silver being wholly inadequate to permit the issuance of coins of intrinsic value or paper currency convertible into coin in the volume required to serve the needs of the People, some other basis for the issue of currency must be developed, and some means other than that of convertibility into coin must be developed to prevent undue fluctuation in the value of paper currency or any other substitute for money of intrinsic value that may come into use.

The monetary needs of increasing numbers of People advancing towards higher standards of living can and should be met by the Government. Such needs can be served by the issue of National Currency and Credit through the operation of a National Banking system .The circulation of a medium of exchange issued and backed by the Government can be properly regulated and redundancy of issue avoided by withdrawing from circulation such amounts as may be necessary by Taxation, Redeposit, and otherwise. Government has the power to regulate the currency and creditof the Nation.

Government should stand behind its currency and credit and the Bank deposits of the Nation. No individual should suffer a loss of money through depreciation or inflated currency or Bank bankruptcy.

Government possessing the power to create and issue currency and creditas money and enjoying the right to withdraw both currency and credit from circulation by Taxation and otherwise need not and should not borrow capital at interest as a means of financing Governmental work and public enterprise. The Government should create, issue, and circulate all the currency and credit needed to satisfy the spending power of the Government and the buying power of the consumers. The privilege of creating and issueing money is not only the supreme prerogative of Government, but it is the Governments greatest creative opportunity.

By the adoption of these principles the long felt want for a uniform medium will be satisfied. The taxpayers will be saved immense sums of interest, discounts, and exchanges. The financing of all public enterprise, the maintenance of stable Government and ordered progress, and the conduct of the Treasury will become matters of practical administration. The people can and will be furnished with a currency as safe as their own Government. Money will cease to be master and become the servant of humanity. Democracy will rise superior to the money power.

Some information on the Federal Reserve The Federal Reserve, a Private Corporation One of the most common concerns among people who engage in any effort to reduce their taxes is, "Will keeping my money hurt the government's ability to pay it's bills?" As explained in the first article in this series, the modern withholding tax does not, and wasn't designed to, pay for government services. What it does do, is pay for the privately-owned Federal Reserve System.

Black's Law Dictionary defines the "Federal Reserve System" as, "Network of twelve central banks to which most national banks belong and to which state chartered banks may belong. Membership rules require investment of stock and minimum reserves."

Privately-owned banks own the stock of the Fed. This was explained in more detail in the case of Lewis v. United States, Federal Reporter, 2nd Series, Vol. 680, Pages 1239, 1241 (1982), where the court said:

Each Federal Reserve Bank is a separate corporation owned by commercial banks in its region. The stock-holding commercial banks elect two thirds of each Bank's nine member board of directors.

Similarly, the Federal Reserve Banks, though heavily regulated, are locally controlled by their member banks. Taking another look at Black's Law Dictionary, we find that these privately owned banks actually issue money:

Federal Reserve Act. Law which created Federal Reserve banks which act as agents in maintaining money reserves, issuing money in the form of bank notes, lending money to banks, and supervising banks. Administered by Federal Reserve Board (q.v.).

The FED banks, which are privately owned, actually issue, that is, create, the money we use. In 1964 the House Committee on Banking and Currency, Subcommittee on Domestic Finance, at the second session of the 88th Congress, put out a study entitled Money Facts which contains a good description of what the FED is:

The Federal Reserve is a total money-making machine.It can issue money or checks. And it never has a problem of making its checks good because it can obtain the $5 and $10 bills necessary to cover its check simply by asking the Treasury Department's Bureau of Engraving to print them.

As we all know, anyone who has a lot of money has a lot of power. Now imagine a group of people who have the power to create money. Imagine the power these people would have. This is what the Fed is.

No man did more to expose the power of the Fed than Louis T. McFadden, who was the Chairman of the House Banking Committee back in the 1930s. Constantly pointing out that monetary issues shouldn't be partisan, he criticized both the Herbert Hoover and Franklin Roosevelt administrations. In describing the Fed, he remarked in the Congressional Record, House pages 1295 and 1296 on June 10, 1932, that:

Mr. Chairman,we have in this country one of the most corrupt institutions the world has ever known. I refer to the Federal Reserve Board and the Federal reserve banks. The Federal Reserve Board, a Government Board, has cheated the Government of the United States and he people of the United States out of enoughmoney to pay the national debt. The depredations and the iniquities of the Federal Reserve Board and the Federal reserve banks acting together have cost this country enough money to pay the national debt several times over. This evil institution has impoverished and ruined the people of the UnitedStates; has bankrupted itself, and has practically bankrupted our Government. It has done this through the maladministration of that law by which the Federal Reserve Board, and through the corrupt practices of the moneyed vultures who control it.

Some people think the Federal reserve banks are United States Government institutions. They are not Government institutions. They are private credit monopolies which prey upon the people of the United States for the benefit of themselves and their foreign customers; foreign and domestic speculators and swindlers; and rich and predatory money lenders. In that dark crew of financial pirates there are those who would cut a man's throat to get a dollar out of his pocket; there are those who send money into States to buy votes to control our legislation; and there are those who maintain an international propaganda for the purpose of deceiving us and of wheedling us into the granting of new concessions which will permit them to cover up their past misdeeds and set again in motion their gigantic train of crime. Those 12 private credit monopolies were deceitfully and disloyally foisted upon this country by bankers who camehere from Europe and who repaid us for our hospitality by undermining our American institutions.

The Fed basically works like this: The government granted its power to create money to the Fed banks. They create money, then loan it back to the government charging interest. The government levies income taxes to pay the interest on the debt. On this point, it's interesting to note that the Federal Reserve act and the sixteenth amendment, which gave congress the power to collect income taxes, were both passed in 1913. The incredible power of the Fed over the economy is universally admitted. Some people, especially in the banking and academic communities, even support it. On the other hand, there are those, both in the past and in the present, that speak out against it. One of these men was President John F. Kennedy. His efforts were detailed in Jim Marrs' 1990 book, Crossfire:

Another overlooked aspect of Kennedy's attempt to reform American society involves money. Kennedy apparently reasoned that by returning to the constitution, which states that only Congress shall coin and regulate money, the soaring national debt could be reduced by not paying interest to the bankers of the Federal Reserve System, who print paper money then loan it to the government at interest. He moved in this area on June 4, 1963, by signing Executive Order 11,110 which called for the issuance of $4,292,893,815 in United States Notes through the U.S. Treasury rather than the traditional Federal Reserve System. That same day, Kennedy signed a bill changing the backing of one and two dollar bills from silver to gold, adding strength to the weakened U.S. currency.

Kennedy's comptroller of the currency, James J. Saxon, had been at odds with the powerful Federal Reserve Board for some time, encouraging broader investment and lending powers for banks that were not part of the Federal Reserve system. Saxon also had decided that non-Reserve banks could underwrite state and local general obligation bonds, again weakening the dominant Federal Reserve banks.

A number of "Kennedy bills" were indeed issued - the author has a five dollar bill in his possession with the heading "United States Note" - but were quickly withdrawn after Kennedy's death. According to information from the Library of the Comptroller of the Currency, Executive Order 11,110 remains in effect today, although successive administrations beginning with that of President Lyndon Johnson apparently have simply ignored it and instead returned to the practice of paying interest on Federal Reserve notes. Today we continue to use Federal Reserve Notes, and the deficit is at an all-time high.

The point being made is that the IRS taxes you pay aren't used for government services. It won't hurt you, or the nation, to legally reduce or eliminate your tax liability.


http://www.john-f-kennedy.net/executiveorder11110.htm
http://www.john-f-kennedy.net/index.htm

Related Article:
http://www.john-f-kennedy.net/thefederalreserve.htm

On June 4, 1963, a virtually unknown Presidential decree, Executive Order 11110, was signed with the authority to basically strip the Federal Reserve Bank of its power to loan money to the United States Federal Government at interest. With the stroke of a pen, President Kennedy declared that the privately owned Federal Reserve Bank would soon be out of business. The Christian Law Fellowship has exhaustively researched this matter through the Federal Register and Library of Congress. We can now safely conclude that this Executive Order has never been repealed, amended, or superceded by any subsequent Executive Order. In simple terms, it is still valid.

Ford, BMW, Toyota Took Secret Government Money - http://jalopnik.com/5704575/


In the depths of the financial collapse, the U.S. Federal Reserve pumped $3.3 trillion into keeping credit moving through the economy. It eventually lent $57.9 billion to the auto industry — including $26.8 billion to Ford, Toyota and BMW.

The Fed on Wednesday was forced to reveal the identity of the companies it aided during the crisis, after contending to Congress that keeping their identities and the details of such lending secret was essential. Much of Wall Street, and corporate giants such as General Electric, Harley Davidson and McDonald's, took advantage of the Fed's help. We've done the math on how the Fed propped up the auto industry.

While Chrysler and General Motors had to go to Congress to beg for cash in 2008, every other automaker's finance arm was having trouble as well. Typically, once they lend money to a buyer, they sell the loan, get the cash upfront, then pump the proceeds back into the business. They also take out short-term loans called commercial paper that keeps the day-to-day business afloat. The crash cut the circuit, raising the chances the automakers couldn't make loans to buyers and keep selling new vehicles.

That's where the Fed stepped in. In normal circumstances, the Fed only lends money to banks, leaving the decisions about who should get credit to them. But when the financial markets started to collapse in late 2008, the Fed set up several programs to lend money directly to corporations, a highly unusual step.

According to the data, from October 2008 through June 2009 the fed bought $45.1 billion in commercial paper from the credit arms of four automakers - Ford, BMW, Chrysler and Toyota - along with GMAC (the former General Motors credit arm). Of those, Ford sold the most, with $15.9 billion.

The Fed also lent $13 billion to investors who bought bonds backed by loans to new car buyers from automakers and banks. The Fed made clear that while investors got the loans, the move was meant to keep the lenders in business; the credit arms of Ford, Chrysler, Nissan, Volkswagen, Honda and Hyundai all benefited directly.

continued at link...


Fed Created Conflicts in Improvising $3.3 Trillion Financial System Rescue
By Bob Ivry, Christine Richard and Christopher Condon - Dec 3, 2010 5:53 AM GMT-1000

A recreational vehicle owned by Deborah A. Cunningham, chief investment officer of Federated Investors Inc., stands at Beaver Stadium in State College, Pennsylvania. Source: Deborah A. Cunningham via Bloomberg

Deborah A. Cunningham, the manager of $261 billion at Federated Investors Inc., was squeezed into the bathroom of her family’s recreational vehicle, trying to help save the $3.6 trillion money market industry.

Cunningham was on the phone with Federal Reserve officials in Boston, New York and Washington. Outside, in the Pennsylvania State University stadium parking lot in State College, football fans were preparing for a game against Temple University.

“It was the only place I could hear,” Cunningham said. “People were drinking beer. They kept knocking on the door, saying, ‘I have to go.’”

The solution Cunningham helped craft on Sept. 20, 2008, was a bailout for money market funds, which were created as safe investments that could be easily cashed out. The Fed put the facility into effect two days later. At its peak in October 2008, it provided $152 billion to stem a customer run sparked by the Sept. 15 bankruptcy of Lehman Brothers Holdings Inc.

This week’s disclosures of data from the Fed’s rescue efforts during the 2007-2008 financial crisis show how the central bank employed companies to help design or run programs they could use to their benefit. Federated tapped the money- market rescue for $8.89 billion, according to Fed data. Pacific Investment Management Co. and BlackRock Inc. weren’t only advisers to the Fed, they were also trading securities they helped value, the Fed data show.

No Choice

“That’s the way the system works,” said David Castillo, senior managing director at Further Lane Securities in San Francisco. “It’s problematic that they’re customers, but that shouldn’t limit their ability to participate in this process. Quite frankly, we don’t have a choice. They have the expertise.”

continued at link: http://www.bloomberg.com/news/2010-12-03/fed-created-conflicts-in-improvising-3-3-trillion-financial-system-rescue.html

Tax Breaks for Bailout Recipients Stir Up Debate

A series of tax relief measures is saving companies bailed out by the government billions of dollars at a time when concern over tax revenues has risen.

Although the Treasury Department first provided the tax guidance in the fall of 2008, the magnitude of the tax savings has become clearer in the past year. The tax relief drew new scrutiny last month after Wall Street bankers touted it to investors in the initial public offering of General Motors Corp.

The tax breaks, already known to apply at GM and Citigroup Inc., also are helping results at another company rescued by Uncle Sam, American International Group Inc., according to tax experts and people familiar with the companies.

The Treasury gave the same treatment to mortgage agencies Fannie Mae and Freddie Mac, but their ability to save taxes as a result is less certain, the same people said.

The tax treatment allows companies whose ownership changes to keep the right to use past losses and other deductions to offset future profits for as long as 20 years. Ordinarily, companies' ability to use such tax assets is curtailed when they are acquired, under a 1986 law aimed at curbing "trafficking" acquisitions arranged to capture tax shelters.

Some critics decry the actions at a time when the focus has turned from saving the economy to closing budget deficits. "The agencies are literally throwing gratuities at banks and other companies," said Christopher Whalen, a bank stock analyst at Institutional Risk Analytics.

Other tax experts, however, defend the government policy. George Yin, a tax law professor at University of Virginia Law school, said the actions are "perfectly defensible" because this doesn't represent the kind of trafficking in tax losses curtailed by the 1986 law. "The government isn't acquiring AIG because it wants to get some benefit from its losses," he noted.

A Treasury spokesman said the rulings "clarified uncertainty" about how the antitrafficking rules "should be applied to the unprecedented U.S. government investments that occurred as a result of the financial crisis." In each case, Treasury said it "has acted to prevent abuse and to protect the interests of taxpayers."

The government policy was first adopted amid efforts to shore up the financial system two years ago. The tax guidance doesn't name the companies, instead describing the programs under which they got aid.

The Treasury's Internal Revenue Service acted to preserve the tax breaks in a September 2008 public notice, after the U.S. takeover of Fannie Mae and Freddie Mac, and soon gave the same treatment to AIG after its government rescue.

Then, shortly after the failure of Lehman Brothers, the IRS said acquisitions among private-sector companies like that of Wachovia Corp., then being pursued by Citigroup and later Wells Fargo & Co., wouldn't lose the tax breaks either.

The IRS actions followed guidance from then-Treasury Secretary Henry Paulson to use tax policy "to make the situation better," a Paulson spokeswoman said. He believed acquisitions of big failing banks was one of the few options available to stave off "systemic collapse," she added.

But after an outcry, Congress in early 2009 barred preservation of the tax breaks for future acquisitions that didn't involve government ownership.

When the issue arose in the government's December 2009 announcement of plans to sell its 34% stake in Citigroup, the IRS gave similar tax relief for government stock sales of bailout recipients such as Citi, GM and AIG.

Citi officials acknowledge the IRS rulings helped protect the bank's $51 billion in tax assets. But even if the agency hadn't acted, they believe they might have lost less than 10% of their value because the rules allow tax losses to survive in proportion to the value of the company at the time of the stock sales.

At the standard 35% corporate tax rate, that amount of tax assets can shelter about $14.3 billion in profits, tax experts say.

GM's IPO prospectus describes world-wide deferred tax assets of $45.4 billion. GM officials believe past U.S. losses will shelter about $45 billion of future profits, saving $14 billion in future taxes, according to people familiar with the company. All of that total could have been limited by the ownership rule, they add.

To Linus Wilson, a finance professor at the University of Louisiana at Lafayette, such actions "take money out of tax revenues and put it in the pockets of shareholders and bondholders of whatever corporation they're granting the exemption to."

AIG, which lost more than $112 billion in the mortgage meltdown, reported $52 billion in deferred tax assets at the end of 2008. They were offset by $20 billion in tax liabilities and a $21 billion valuation allowance, a discount reflecting the likelihood the assets will be used, which brought net tax assets down to $11 billion.

The 2008 tax assets included $47.3 billion in U.S. operating loss carry-forwards, which can be used to offset taxable income. Indeed, the carry-forwards declined by $12.1 billion during 2009, as AIG used them to save billions in taxes by offsetting other income.

On Nov. 2, AIG tax adviser KPMG LLP urged the IRS to adopt ownership-change rules in a way that would preserve its tax assets despite the government's 80% stake and its plans to reduce that stake. The government isn't trafficking in tax losses, the letter adds. KPMG declined to elaborate.

continued at link: http://online.wsj.com/article/SB10001424052748704377004575651134154809918.html?mod=WSJ_hp_LEFTWhatsNewsCollection

Dr. Ron Paul Takes Over Chair of Domestic Monetary Policy, Including Fed Oversight

http://www.thetradingreport.com/2010/12/10/dr-ron-paul-takes-over-chair-of-domestic-monetary-policy-including-fed-oversight/

Today it’s been announced that Congressman Dr. Ron Paul (R-TX) will become Chairman of the Domestic Monetary Policy House Subcommittee in 2011. If ever the US could benefit from a turning point in monetary policy it’s now. This is one of Congress’ most relevant entities for supervising that work, as a component of the overall House Financial Services Committee, the Domestic Monetary Policy and Technology Subcommittee oversees:

•the Federal Reserve’s efforts to carry on its regular responsibilities, including bank examinations, consumer protection and data collection
•the testimony of the Chairman of the Board of Governors of the Federal Reserve
•Emergency Authority, including the Fed’s efforts to withdraw the extraordinary monetary stimulus it provided and reduce its balance sheet
•the state of US coins and currency, including examining the roles of the Bureau of Engraving and Printing, US Mint, Federal Reserve, and Secret Service
•audits of the Federal Reserve, or whatever is left of that possibility, based on the final version of the signed Dodd-Frank Act
Perhaps no congressman is more actively — or famously — engaged in the task of changing the current trends in monetary policy than Dr. Ron Paul, author of “End the Fed,” and a studied critic of how the US manages its money supply. He sees monetary reform as an eventual necessity and the dollar as unable to indefinitely operate as the reserve standard for the world.

"President John F.Kennedy, The Federal Reserve And Executive Order 11110
With the stroke of a pen, President Kennedy was on his way to putting the Federal Reserve Bank of New York out of business."

Yes ~ JFK's finest and bravest act (A true 'profile in courage) ~ Five months later he would pay for it with his life. In the forthcoming coming months of the spring of 1964 ~ that order would die quietly (withdrawn) by the incoming (new) LBJ administration that was now (purposely) marching the USA too the new tune of the Industrial Military Complexes (wishes) of WAR (Vietnam for the starter).

We will see if Ron Paul is a true profile of courage