Viewpoint: Shall we impeach the Fed?

July 1, 1993

Viewpoint: Shall we impeach the Fed?

By By Joe Baker, Senior Editor

A week ago, the pundits were telling us with great glee that the stock market was rallying; the recovery was picking up steam. Thursday afternoon the headline on Reuters was: “Stocks fizzle after historic rally, bonds up.”

Now there are more reports of corporate accounting fraud and more mammoth losses at some of the largest businesses in the country.

What of one of the most corrupt of all the corporations, the Federal Reserve? We hear nothing of it in the national media or hardly anywhere else. But it has existed for a great many years.

Way back in 1933, Congressman Louis McFadden took dead aim at the Fed, the Comptroller of the Currency and the Secretary of the Treasury and asked for articles of impeachment which included such criminal acts as conspiracy, fraud, unlawful conversion and treason.

McFadden was not some loose cannon rattling around the U.S. Congress. He served more than 10 years as chairman of the House Banking and Currency Committee. He was very well informed as to the economic policies and practices of this country and knew very well the dangers presented by the private central bank.

In 1934 he addressed the House of Representatives on these matters. Among other things, he said: “… 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 Fed has cheated the government of these United States and the people of the United States out of enough money to pay the nation’s debt.

“This evil institution has impoverished and ruined the people of these United States, has bankrupted itself, and has practically bankrupted our government. It has done this through the defects of the law under which it operates, through the maladministration of that law by the Fed 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 private monopolies which prey upon the people of these 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 legislatures; there are those who maintain international propaganda for the purpose of deceiving us into granting new concessions which will permit them to cover up their past misdeeds and set again in motion their gigantic train of crime.”

McFadden ticked off a long list of things accomplished by the central bankers which benefited them but brought harmful results to the people of this country.

He summed up its effect this way: “The Federal Reserve Bank destroyed our old and characteristic way of doing business. It discriminated against our one-name commercial paper, the finest in the world, and it set up the antiquated two-name paper, which is the present curse of the country and which wrecked every country which has ever given it scope. It fastened down upon the country the very tyranny from which the framers of the Constitution sought to save us.”

Incidentally, McFadden’s petition for articles of impeachment against the Fed languishes to this day in some musty recess of the House, having never seen any action by the elected representatives.

The Federal Reserve remains a private company, with private stockholders. The Fed is not part of the government of the United States; the “Fed” is a misnomer which misleads people.

Many purport that the Fed was planned and created on J.P Morgan’s retreat, Jekyll Island, Ga., in 1910. In 1913, the Wilson administration passed it formally through Congress. Since then, the Fed has created fiat money that has no real value and charged exorbitant interest to the U.S. taxpayers, creating our huge national debt.

President Andrew Jackson paid off the national debt and dismantled the central bank of his day. He printed our own U.S. greenbacks, not Federal Reserve Notes. Lincoln and Kennedy wanted to do the same, but we know what happened to them. Clinton paid down the national debt, and now Bush has blown it back up again, using deficit spending to finance his military expansion and his War on Terrorism. All he has really done is further destabilize the market with fear and uncertainty.

So we’re told the recovery is in progress. Some recovery! No profits, no jobs and no commercial investment.

What kind of investment could we have made with the trillions of dollars paid to the “Fed” in interest? Think of domestic programs we could have. The War on Poverty might have been won, eliminating the need for a War on Drugs, which is really just a war on minorities and escapists.

Federal Reserve Chairman Alan Greenspan said the U.S. economy is gaining strength and can overcome a loss of faith in its corporations. Similar comments have been made by President George W. Bush. Whom do you believe?

Bush represents the biggest corporations, and Greenspan represents the biggest banks.

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