Guest Post: Are The 12 Regional Banks Of The Fed Private Entities?

Tyler Durden's picture

Submitted by Lars Schall or LarsSchall.com,

Related to a book that I’m writing in German, I was asking myself whether the 12 regional Federal Reserve banks are privately owned.

The US Supreme Court, I found out, said this on January 3, 1928 in the case “United States Shipping Board Emergency Fleet Corporation v. Western Union Telegraph Co.“:

Instrumentalities like the national banks or the federal reserve banks, in which there are private interests, are not departments of the government. They are private corporations in which the government has an interest. Compare Bank of the United States v. Planters’ Bank, 9 Wheat. 904, 907, 6 L. Ed. 244.

See here for yourself.

Connected to the Freedom of Information Act (FOIA) case “Bloomberg LP v. Board of Governors of the Federal Reserve System, 08-CV-9595, U.S. District Court, Southern District of New York (Manhattan)“, Bloomberg reported in May 2009:

The New York Fed is one of 12 regional Federal Reserve banks and the one charged with monitoring capital markets. It is also managing $1.7 trillion of emergency lending programs. While the Fed’s Washington-based Board of Governors is a federal agency subject to the Freedom of Information Act and other government rules, the New York Fed and other regional banks maintain they are separate institutions, owned by their member banks, and not subject to federal restrictions.

See here for yourself.

In connection to the same FOIA case, Yvonne Mizusawa, Senior Council of the Board of Governors of the Federal Reserve System, stated on January 11, 2010 that the regional banks of the Federal Reserve System are indeed “private banks“.

See here for yourself.

Moreover, I’ve asked today Nomi Prins, the author of the book “All the Presidents’ Bankers“, the following:

Do you think it is right to say that the Federal Reserve System includes private member banks, which receive a 6% dividend for their shares from the profits that the regional fed banks are making on their market operations?

Nomi Prins responded:

As I understand Section 7 of the Federal Reserve Act, that is the case. Stockholders, or member banks, of the Federal Reserve System are entitled to receive a 6% per annum dividend on their paid-in capital stock, and any surplus fund can be used to pay dividends in the event that any year’s current earnings of the Federal Reserve System are insufficient to cover funds for that year.

See the early 1922 letter from its General Counsel, here:

The material portions of Section 7 of the Federal Reserve Act read as follows:

 

“After all necessary expenses of a Federal reserve bank have been paid or provided for, the stockholders shall be entitled to receive an annual dividend of six per centum on the paid-in capital stock, which dividend shall be cumulative. After the aforesaid dividend claims have been fully met, the net earnings shall be paid to the United States as a franchise tax except that the whole of such net earnings, including those for the year ending December thirty-first, nineteen hundred and eighteen, shall be paid into a surplus fund until it shall amount to one hundred per centum or the subscribed capital stock of such bank, and that thereafter ten per centum of such net earnings shall be paid into the surplus.

 

“…Should a Federal reserve bank be dissolved or go into liquidation, any surplus remaining, after the payment of all debts, dividend requirements as hereinbefore provided, as the par value of the stock, shall be paid to and become the property of the United States and shall be similarly applied.”

See here.

As additional information on the dividends, the law requires dividends are paid to reserve member banks, before the Fed transfers any excess earnings to the Treasury Dept. as interest on Federal Reserve notes, (see p 398 of the Fed’s 2013 annual report)…It should be noted that the amounts aren’t huge, for 2013, annual dividends were $1.65 billion.

See here.

Update – July 10, 2014:

On the same day, I wrote this e-mail to some people at the press office of the New York Fed:

Dear Ladies and Gentlemen,
I am a financial journalist from Germany. Related to this article, I would like to know whether the NY Fed pays local property tax, and if it doesn’t, on what ground does it claim exemption?

Moreover, may I ask you whether the NY Fed sees itself as a private entity as suggested in its response to the FOIA case “Bloomberg LP v. Board of Governors of the Federal Reserve System, 08-CV-9595, U.S. District Court, Southern District of New York (Manhattan)“? You find the quote to which I’m referring in the article above.

Furthermore, how does the NY Fed respond to the statement by Yvonne Mizusawa, Senior Council of the Board of Governors of the Federal Reserve System, that the regional banks of the Federal Reserve System are “private banks“? See also in the article above, please.

Thank you very much for your attention!

Kind regards,
Lars Schall.

That e-mail was inspired by an idea that it might be worthwhile to check whether the regional Fed banks pay local property tax. After all, that was how Wright Patman established that the Board of Governors, in Washington, is a public entity. But I believe the same logic would apply to the regional banks.

I’ve arranged a PDF copy of a certain passage in William Greider’s book “Secrets of the Temple,” so that you can read for yourself that strange story about Wright Patman and the Fed’s headquarter building in Washington DC – see here. According to Patman, “constitutionally, the Federal Reserve is a pretty queer duck.”

Furthermore, I wrote yesterday an e-mail to US economist L. Randall Wray. In the book that I’ve mentioned, I quote Prof. Wray from an essay about the so called “independence” of the Federal Reserve, and specifically one sentence in the sense of this article:

“The Glass-Owen bill split the difference, with private ownership and a decentralized system, but with the Treasury Secretary and the Comptroller of the Currency sitting on the Board.”

With regards to this sentence, I’ve asked him: Where does the “private ownership” come from?

Prof. Wray replied by stating that I was “barking up the wrong tree” and pointing to a paper he co-authored. He added: “The Fed is a creature of congress. The ownership by member banks amts to getting a 6% return and some delegated fairly insignificant duties, which can be changed at any time by congress. The shares cannot be sold.”

Chris Powell, the press secretary of the Gold Anti-Trust Action Committee (GATA) in the US wrote me:

While the share structure of the Federal Reserve System is peculiar, this issue has always seemed to me to be of no point. The system was created by federal law and is a creature of government. OF COURSE the system, like the rest of government, contrives reasons not to be accountable to the public, and OF COURSE the system, like all other government agencies, is captured by the private interests it is supposed to regulate, and OF COURSE as a result it tends not to serve the public interest. But it remains a creature of government and the public, through its elected representatives, could take control of it any time the public could mobilize itself to do so.

 

“If the Federal Reserve Board was not a government agency, GATA could not have sued it under the Freedom of Information Act and won a federal court order for disclosure against it (and a court award for legal costs) a few years ago. And didn’t Bloomberg win its similar case against the New York Fed for the QE records?”

I’ve told Powell about the court ruling from March 19, 2010 by the United States Court of Appeals, Second Circuit – see here. It said:

“As the records of the Federal Reserve Bank of New York had not been searched, we need not decide here whether what may be found must be produced.”

Chris Powell replied: “Thanks for the resolution of the Bloomberg case. I think that settles the issue. The FOI Act applies only to government agencies.”

“All in all, nothing to see here, I guess…”, I thought.

I also saw then two more significant statements:

1) The Board and the Clearing House appeal only on the ground that a proper interpretation of FOIA Exemption 4 covers the requested material. No contest is made as to Exemption 5, or as to the scope of the Board’s (disputed) obligation to conduct a search of records at the Federal Reserve Bank of New York. Any argument that the Board had as to Exemption 5, or either side had as to the scope of the ordered search at the Federal Reserve Bank of New York is therefore deemed waived. Norton v. Sam’s Club, 145 F.3d 114, 117 (2d Cir.1998). Whether certain records of the twelve Federal Reserve Banks are records of the Board is an issue that is decided in an opinion-filed simultaneously with this opinion-in the appeal (heard in tandem with this appeal) from the Southern District’s decision in Fox News Network, LLC v. Board of Governors of the Fed. Reserve Sys., 639 F.Supp.2d 384 (S.D.N.Y.2009). See Fox News Network, LLC v. Bd. of Governors of the Fed. Reserve Sys, —F.3d —-, 2010 WL 986665 (2d Cir.2010).

 

2) The requests sought (in relevant part) detail about loans that the twelve Federal Reserve Banks made to private banks in April and May 2008 at the Discount Window and pursuant to ad hoc emergency lending programs (described in the margin )… The Board denied these requests (in relevant part) in December 2008. The Board conceded possession of records showing the loan information Bloomberg sought, with the exception of the collateral; collateral information is held by the lending Federal Reserve Banks. But the Board advised that the responsive information in its possession—contained in “Remaining Term Reports”–was exempt from disclosure under FOIA Exemptions 4 and 5. The Board did not search the lending records of the twelve Federal Reserve Banks, explaining that a request to the Board does not constitute a request for information held by those institutions.

Chris Powell then replied: “Yes. They can claim that the law exempts certain records from disclosure but they can’t claim that they are not a government agency or that they are not covered by the law.”

I asked Powell in a provocative manner: “Why not file a FOIA request re the NY Fed and the German gold? Perhaps, one could solve two issues at once…”

Powell: “That WOULD be an interesting one. One must remember that while GATA won its case against the Fed in a technical sense, the court still ruled that the Fed could keep all of its gold records except one. Among the records the Fed was allowed to keep secret were records of gold swaps with foreign banks.”

I asked: “Have you specifically asked for something re the NY Fed?”

“Yes”, he wrote back. “A few months ago I asked the New York Fed whether, as its former vice president said in a speech, the bank provided gold accounts to banks. Couldn’t get the publicist to answer and so wrote to Dudley, the NYFed president. Couldn’t get an answer there either and so wrote to my congressman and senators to ask them to bludgeon an answer out of the NYFed.

“Maybe a month after that I got a letter from an underling to Dudley contradicting the speech of the former NYFed vice president. See the middle of the speech here. And then this.”

If the NY Fed responds to my questions, I will let you know, although I wouldn’t expect anything; they’re not very good at answering my questions – as you can see for yourself here, for instance.

I will also let you know whether Yvonne Mizusawa, the Senior Council of the Board of Governors of the Federal Reserve System, has anything to add to her remarks that were brought forward in the Second Circuit Court of Appeals related to the FOIA cases “Fox News Network LLC v. Board of Governors of the Federal Reserve System” and “Bloomberg LP v. Board of Governors of the Federal Reserve System”. Today I sent a press inquiry to Michelle A. Smith, press secretary of the Washington-based Board of Governors, in order to ask her to forward it to Ms. Mizusawa, whom I made familiar with my e-mail to the NY Fed – and then added the following:

May I ask you on the record:

Why are the regional banks of the Federal Reserve System “private banks“?

How do they differ from other private banks?

Thank you for your attention!

Kind regards,
Lars Schall.

To be continued, I guess…

Update – July 11, 2014:

Thank You For Filling Out This Form

Shown below is your submission to NYC.gov on Friday, July 11, 2014 at 11:09:48

This form resides at http://www.nyc.gov/html/dof/html/contact/contact_emailcorrespondence.shtml

NAME of FIELDS
DATA
NAME: Lars Schall
YOUR POSITION: Financial Journalist
QUESTION TYPE: OTHER
QUESTION: Press Inquiry Dear Ladies and Gentlemen, I haven’t been able to contact directly your press office. Related to a current research of mine, I would like to know whether the NY Fed pays local property tax, and if it doesn’t, on what ground does it claim exemption? Is this public information? Kind regards, Lars Schall.

What you’ve just read is an inquiry that I sent today to the tax department of the City of New York, after I had tried for 45 minutes to get in touch with its press office via phone.

I think, a Title Insurance Company could tell you the answer within 5 minutes. But, you would have to hire them and pay about $500 for the search. All they would need is the street address of the building.

In addition, pull this up, and then go to page 25, #12: Federal Reserve Bank of New York / 33 Liberty Street / Block 35 / Lot 1.

This is a register of all public buildings in NYC – hospitals; jails; fire halls; schools; etc. Public Buildings are exempt from real estate taxes. See here. All exemptions are listed there. Check out the specific exemption for: Federal property (see United States, property owned by). Other exemptions may apply. You would have to ask someone to research the building – the value (assessment) for real estate tax purposes is a matter of public record. If there is an exemption, the particular exemption will be stated on the “card” for that particular property: 33 Liberty Street / Block 35 / Lot 1.

The foregoing does not answer my questions, but provides a good guess that: This property is exempt from real estate taxes because it is classified as “Federal property”.

After he saw my inquiry re the NYC Department of Finance, Chris Powell wrote me:

“I’m sure that the New York Fed pays no local property taxes. But to resolve the issue of the government nature of the Fed and the regional Federal Reserve banks, it is necessary only to look at a dollar bill.

 

“On the front the bill says ’Federal Reserve Note’ on the top and then, just underneath, ’The United States of America.’ It is signed by the treasurer of the United States and the secretary of the treasury, both U.S. government officials. It carries the seal of a regional Federal Reserve bank; all the regional banks issue such notes. And it says: ’This note is legal tender for all debts, public and private.’ That is, the law — made by the government — is what gives value to Federal Reserve notes.

 

“On the back the bill carries the Great Seal of the United States.

 

“If the Fed and its regional banks were not government agencies, the dollar bill would look very different.”

And yet, we still have Yvonne Mizusawa saying officially on behalf of the Board of Governors of the Federal Reserve System: The regional banks of the Fed are not agencies, they are private banks.

I haven’t made this up.

After I had not seen any response from Ms. Smith coming my way with regards to my inquiry, I looked for Ms. Mizusawa’s e-mail address at the Fed – and I was successful. Therefore, I have been able to write her directly:

Dear Ms. Mizusawa,

my name is Lars Schall. I’ve tried yesterday to get in touch with you via Michelle A. Smith, press secretary of the Board of Governors of the FRS. I copy my inquiry below.

I hope this e-mail address that I just found in the web works.

I would appreciate a response from you very much!

Kind regards,

Lars Schall.

Then followed a copy of my original inquiry that I sent to Ms. Smith.

To be continued, I guess…

Notes:

(1) “Federal Reserve Bank Governance and Independence during Financial Crisis”, published at Levy Economics Institute of Bard College, April 2014, here. You may also want to read an interview that I did with Randall Wray in the past: “Truths and Myths of the Federal Reserve”, published on May 6, 2010 here.

(2) The court ruling can be found here. “The Federal Reserve System–the central bank of the United States–is composed of twelve regional Federal Reserve Banks and the defendant-appellee Board of Governors of the Federal Reserve System (“Board”) in Washington, D.C. The Board is a federal agency that (among other things) supervises the operations of the twelve Federal Reserve Banks. (…) As the district court concluded, not all lending records of the twelve Federal Reserve Banks necessarily become records of the Board. However, Board regulations provide that some records at the Federal Reserve Banks– those kept at the Federal Reserve Banks under certain conditions for “administrative reasons”–are records of the Board; these must be searched. We remand to the district court to order further searches and to determine if the fruits of those searches must be disclosed. The district court did not reach the question of whether the Board misconstrued the scope of the Fox News FOIA requests (the district court having ruled these documents would be [**6] exempt from disclosure in any instance); we remand for further consideration of that question as well.”

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Jumbotron's picture

The 12 headed Hydra

Jumbotron's picture

The matter of if the Federal Reserve is private or public is moot.  It is both.  It is Fascist.  It's a Goverment/Private Partnership.  Fascism pure and simple. 

Pladizow's picture

Yes we're a private institution and no we don't pay property taxes. What are you going to do about it - we run this bitch!

813kml's picture

Now you've got me jonesing for some calamari.

nidaar's picture

FED is Schrodinger's cat; it's both alive and dead. The collapse (of the wave function) will occur when the box is opened, hence it gets audited. When everyone sees that all the gold is gone...

daemon's picture

" FED is Schrodinger's cat "

Yes, definitely a good way to express the "status" of this "entity".

I would personally describe it as  : " the banksters' trojan horse in the republic " , to make it clear that it's a criminal being. 

chumbawamba's picture

Interesting.  So the most elucidating fact to come out of this for me is that the Board of Governors of the FRB is a government agency but the regional Federal Reserve Banks are private.  That's pretty clear enough.

Understanding the structure is crucial if you're going to attack it (Sun Tzu 101: know your enemy).

Good stuff, Lars.

-Chumblez.

Unknown User's picture

The Fed is a private central bank that uses a powerless Board of Governors to pretend that it’s a quasi-government agency.  The Board is a seven member panel appointed by the President and approved by the Senate. It determines the interest rate, known as the discount rate, for loans to commercial banks and thrifts, and selects the required reserve ratio which determines how much of customer deposits a bank must keep on hand. The Board is a front that has no power. The actual banking operations of the Fed, including the 12 regional banks, are in private hands.  Considering that the US government issues only 5% of all money in circulation and that the banks often collect as much money in interest as they lend, shows the magnitude of the problem with a private fractional reserve monetary system.

AE911Truth's picture

As with any private corporation, the board (of directors) is obligated to serve the interests of the share holder owners, who, in this case, are the private federal reserve banks.

The TBTF banks like JPM, BOA, City, etc. own (share in) the Regional Fed banks. So, the FRB ultimately serves these owners.

This is why these banks can instruct the Fed to loan them billions of FRNs short term at 0.5% interest which they use to buy UST long term obligations which earn 3.5%, so they profit 3.0% (the difference) on what they borrow. Who pays the interest on the long term USG obligations? You do with your Taxes to the IRS.

If you are not totally pissed off and ready to jail all of these criminals, then you are not paying attention.

bullchit's picture

Wave functions don't collapse, they develop. The gold is a minor actor in this play.

Think 10's of $Trillion's......of your money.

Regards.

 

NihilistZero's picture

Ozymandias had to create the squid.  Bringing about the NWO is the only way to save humanity.  The Comedian was right...

Occident Mortal's picture

The Swiss Central Bank is a private corporation and even has it's own stock ticker.

http://en.m.wikipedia.org/wiki/Swiss_National_Bank

http://www.snb.ch/en/

http://www.snb.ch/en/ifor/shares

As you can see the Swiss National Bank (which is Switzerlands Central Bank) also has a dividend determined by law, which like the Fed is fixed at 6%.

For just 1,089CHF anyone can say they own a central bank.

Buckaroo Banzai's picture

Technically then, if Swiss Central Bank shares are traded on public markets, it is a publicly-owned corporation-- not private.

Shares of the Federal Reserve banks are not traded on public markets, which makes them private corporations.

OldTrooper's picture

A quick online search at http://www.dallasact.com/act_webdev/dallas/showdetail2.jsp?can=000542000G01A0000&ownerno=0 reveals that the Federal Reserve Bank of Dallas pays property taxes -  $1,694,388.70 is the current levy - on the property located at 2200 N PEARL ST.

I didn't check the other Fed locations.  Other tax jurisdictions may not have such easy to navigate online portals.  However, it appears at first glance that the Fed is not exempt from local property taxes.  Go find a lawyer to tell you if this means anything or not.  I'm just an old title guy that knows how to look for this kind of info.

overmedicatedundersexed's picture

when sociopaths run a system - does it matter how it is structured? when congress exempts itself from laws written for the common folk, does it matter?, Our most likely next president has said:

"At this point what difference does it make!" quite right you are there reptile hag crone that sums it all up in 8 words.

OldTrooper's picture

Well, knowing the facts may help someone strengthen their arguments.  It distresses me when a friend or ally makes an ass of themselves by failing to verify a 'fact'.  So, that is why I provide the results of my research.  Does it matter?  It doesn't particularly matter or change anything for me to know that the Fed branches print off a few million each year to 'pay' their property taxes.  But it does matter to me when an otherwise good argument, made by a decent normal person, is ruined by including an easily refutable untruth.

Jumbie's picture

New York Fed pays property tax

Go to:

http://webapps.nyc.gov:8084/CICS/fin1/find001i

33  Liberty St Manhatten

 

Example:

http://nycprop.nyc.gov/nycproperty/statements/soa/jsp/stmtassesssoa.jsp?...

Total New Charges Due by July 01, 2008 $1,319,187.54 Total Amount Due by July 01, 2008 $1,319,187.54 Amount Not Due but That You Can Choose to Pay Early $1,319,187.54 Savings if You Choose to Pay Early $-39,575.63 Total Amount You May Pay by July 01, 2008 $2,598,799.45
studfinder's picture

Google led me to this:

 

"(c) Exemption From Taxation. Federal reserve banks, including the capital stock and surplus therein, and the income derived therefrom shall be exempt from Federal, State, and local taxation, except taxes upon real estate."

Greenskeeper_Carl's picture

and bullshit. listen to krugman defend the fed, and talk about how people who complain about ZIRP and QE are the very rich who are complaining they arent making money. I read this becuase i saw a link to it, and the outright lieing and bullshit in this article is almost beyond belief. He actually claims that the '.01%' ARE THE LOSERS OF FED POLICY. \

 

http://www.salon.com/2014/07/11/paul_krugman_blasts_selfish_plutocrats_f...

end the fed....

Squid-puppets a-go-go's picture

man its unbeleivable the extent to which these assholes will say absolutely anything - any patently false absurdity - and have no impact on their credibility within the power structure

thats when you know the republic is buried 6 feet under, never to return this side of violent bloody revolution

Greenskeeper_Carl's picture

http://www.lewrockwell.com/2014/07/gary-north/the-state-is-losing-legiti...

 

hopefully not. gary north makes a very compelling case for a slow but steady de-centralization. any transition will go through a painful period, but this guy has been pressing this possibiliy pretty hard for a while now. he makes a very good case. i hope he is right.

Buckaroo Banzai's picture

That is a compelling case, thanks for the link. It also explains why the Obama administration seems so eager to foment revolution-- it's because that's exactly what they want.

Greenskeeper_Carl's picture

thats why Im fearful of those calling for a revolution. The most likely outcome of that is a bloody, violent period, lots of dead people, many of whom will be innocents(like the 1 million or so iraqis we call 'collateral damage') who were just caught in a crossfire, or just plain unlucky. A revolution, especially at the hands of the 50 million strong FSA, would merely put more power in the hands of the govt. kind of like what Cloward-Piven tries to bring about. What scares me the most is that from the point of a tyrannical govt, an economic calamity would give them the excuse they need to really drop the hammer on the populace. There are over 50 million people who get food stamps, most of whom couldn't care less about the fed, warfare, NSA spying, the constitution, etc, and only care about that card getting filled with someone elses money each month. They will be demanding the govt tax even more, confiscate savings, etc. Just like with Occupy wall street and all those people, basically demanding MORE govt. Thats what a revolution in this country would look like. There are way more of them then there are of us.

gcjohns1971's picture

Hope not,

Violent revolutions are dominated by the few directing the fighting, and to whom directly goes all the power.

That those few be proof against Acton's Axiom, or concerned with the public welfare in the first place, is as rare as an honest politician.

dumby's picture

I agree with Jumbotron: the question of the Fed being public or private is a false dichotomy.

But the same can be said of the 'government' in most of its functions: military, regulatory, judicial - these all serve private interests, in a "heads we win, tails you lose" fashion whereby all the risks are assumed by the 'public' - i.e. citizen / serfs.

Fascism is the best word for both the US Fed and the US government, and most, if not all governments in the world, I suspect.

chumbawamba's picture

Not really.  That's like swinging at it wildly with a stick and yelling "HAH!! HAH!!" trying to scare it, because in fact you're the one whose scared and you have no fucking idea how to attack this behemoth.

Understanding how the Fed actually is structured is not that difficult.  You can research old case law as Lars did, and also check the Federal banking code and the Congressional record for how the Fed was formed.  It's all there, it's just a lot of tedium one must endure to go through it all.

I am Chumbawamba.

Jumbotron's picture

You're full of shit Chumbles.  The behemoth of National / Central Banks has been known and studied for for over 300 years....

https://en.wikipedia.org/wiki/Sveriges_Riksbank

https://en.wikipedia.org/wiki/Bank_of_England

And for America we've know about them for over 200 years....

https://en.wikipedia.org/wiki/First_Bank_of_the_United_States

Modeled on the Bank of England,[6] this privately held, but publicly funded institution would also serve to process revenue fees and perform fiscal duties for the federal government.[5][7] Secretary Hamilton regarded the bank as indispensable to producing a stable and flexible financial system.[6][8]

And here is the list of the longest running banks in the world going  back to the year 1407.

https://en.wikipedia.org/wiki/List_of_oldest_banks

 

I'm sick of your shit Chumbles.  You get on this site and you talk up what needs to be done, what others should be doing.  Fuck you.  You and I are not in the club.  We never will be and we will never win.  The Elites own this world....they always have and they always will.

You say that all we need is to know better the structures of this and the machinations of that.  We need Ron Paul.  Someone needs to kick out all the JOOS. 

Fuck you.  You sit in your mother's basement snarking away on ZeroHedge and probably other sites as well.  I don't see you picking up the gun.  I don't see you burning down the Fed.  If you are voting....it's obviously a wasted vote.

All you can say is "I am Chumbawamba"  Who the fuck cares ?  Not the Elites.  Not the Powers That Be.  Not the Bankers.  Not the N.S.A......although they appreciate the good laugh everytime your name "Chumbawamba" shows up in their database.

Son....you need to grow the fuck up.  There is nothing you or I or anyone can do to stop any of this.  Mankind from the day they came out of the caves has wanted to control this world and the universe.  They have ALWAYS wanted to be God.  Money printing and the transfer of said money is P O W E R.  It is the power of God.  It creates something from nothing.  And everyone's life from the lowliest to the highest is controlled by it.

And you think....that if one of us.....some fucking unknown as of right now hero amongst us knew just a LITTLE bit more about how the Fed works or the machinations of the Elite, he....she.....or we could bring it all down.  Even if we did....this cancer is so prevalent that it would kill the world entire and drive us all back to subsistence farming.  I'm down with that.  But not the billions who still want to live in the MATRIX even though they know that the steak they are eating is fake and a holographic construct.

Fuck you and fuck hope.


chumbawamba's picture

You sad nigger.

While you sit there and lament the hopelessness of the situation, there are thousands of brawlers out there who are putting the pieces of the puzzle together and they aren't doing any of their research on Wiki-fucking-pedia.

I like how you think I'm going to give up because some douchefag on Zero Hedge told me the situation is hopeless.  While you're toiling away at your 40 hour week, I'm busy bringing the California Superior Court to its knees.  I don't have time to wallow in self-loathing and ineffectiveness, I got shit to do.

You are a sad and silly clown man.  Take your circus sideshow somewhere else where maybe it has an audience.  This isn't Fag Club.

I am Chumbawamba.

Jumbotron's picture

Then man up ball licker.

I want to see your sorry ass with a bullet in your head in front of the Fed or your bombed out carcass in Gaza defending the poor pitiful "Palestinians".

All you can do is bitch on ZeroHedge and probably other sites where you go by a different name.  That's OK.  We all need a place to vent.  Like sitting at the local bar getting juiced and bitching to some poor schmuck next to you that has no where to go and no one to talk to either.

You....you silly, deluded, probably drug addled useless piece of effluent down a sewage pipe to hell.  You're bringing the California Superior Court to its knees.  Ok big man.......tell us all the court case.  Let us search the public records.  Let us determine whether or not you are single handely bringing down the California Superior Court.

Fuck you.  You ....ain't....doing....shit.....but boasting like a pissy little cunt who got owned by the system and is kicking up dust and screaming about how you ain't down.....you're still fighting.

You ain't Chumbawamba.  You're nothing but a piece of shit.  You always have been since the day you squirted from your mother's womb.  You were given a name by someone else.  And the system gave you a number.  You go to work for the man.  And if you don't you are still taxed by the system......followed by the systems....tracked by the system.......allowed to live by the system.  So....you get freed from the Feds....then you're owned by the Corporations.  You get freed from the Corporations....you're owned by the Feds.   You get freed by both of them....you're owned by a local or state Elite.  If you are free from all those.....you're owned by the strong man.

And if you reach ALL those freedoms....it's only because you became one of them.  That's the only choice you have. 

But no......you're Chumbawamba.....whatever the fuck that means.  Which in this world....is precisely zero.

But please......ignore me.  Like you said.....you've got shit to do.   I agree.  You ain't got nothing......but shit to do.

 

Buckaroo Banzai's picture

I've said this before in this forum, but it bears repeating: it is not fascism we are facing, but communism. Fascism is the league of corporate SHAREHOLDERS and government; communism is the league of corporate EXECUTIVES and government.

The obvious reason why the Federal Reserve is composed of private corporations under allegedly public oversight is to obfuscate their operations to the greatest degree possible. You can't argue with the results. We can't even agree as to what they ARE, much less what, exactly, they are doing.

Jumbotron's picture

Bullshit.

WE ARE ALL shareholders.  We pay our taxes to the Federal Government who appoints the head of the Private Federal Reserve who then prints the MONEY that funds the PUBLICALLY held banks that then fund the PUBLICALLY held companies that give you a PAYCHECK which is then taxed by the FEDERAL GOVERNMENT.

We ALL own shares in every bank and every publically held company and the Federal Government simply through our labor which is funded by a Private Federal Reserve Bank and taxed back to the Federal Government.  It doesn't matter if we WANT to own shares.....we simply do.

I'll only agree with you if you meet me halfway by stating that perhaps our Government is Communism but operates with Fascist tendencies and principles.

In the end.....it doesn't much matter what techniques the Elites use or the makeup of the chains they wrap us in.  It's still Feudalism.  It's still the Plantation.  They're just smart enough now to realize....like the MATRIX....that we need to THINK we have a bit of freedom......that there is still room for HOPE. 

There is no Freedom.....there is NO hope.

chumbawamba's picture

There is...no intelligence in that pile of wet noodle of yours.

What pair of sad wretches raised you into the humongous pile of worthless shit you are today?  I'd really like to meet them so I can berate them proper in front of you.

You might want to check Title 12 United States Code section 411 for your remedy.  Taxes are voluntary.  You incur the excise when you use Federal Reserve Notes.  However, FRN are dual use instruments, both FRN and US Notes, the latter of which is lawful money.  Lawful money is not and cannot be taxed by the IRS, because they only concern themselves with the private bankster credit that the Fed issues

I endorse any check I cash with "REDEEMED IN LAWFUL MONEY PER 12 USC 411".  I have not filed taxes since 2008 and haven't paid since 2006.  Why?  Because I'm not a taxpayer and I didn't incur a liability.  In 2006 and 2007 I thought I did, and filed, but I learned in 2008 it was a mistake.  I may eventually elect to go back and demand the return of every payment beyond the 40 quarters I was required to pay into the Social Security system to earn retirement benefits, which I probably will never use anyway, even if I wanted to, since the IRS, the Fed and all that "money" I paid will be gone by the time my balls are hanging twice as far between my legs as they are now.

Go find a rock to hide under, you fucking abject coward.

I am Chumbawamba.

Jumbotron's picture

You're the fucking coward.  It takes courage to see the world as it truly is and still not put a bullet in your brain.

The only way you don't is you make up little fantasies in your head about obtaining freedom.  Whatever the fuck that means.  That's the way and most of you on ZeroHedge cope.  That and probably a big, fat doobie from time to time.

I don't need to hide under a rock.  There is no truth to be found under the rock.  Neither is there any found in your pathetic, feeble, drug fueled fantasies about bringing the system down.

HOOOO BOY !   You're really sticking it to the Feds with your little "lawful" money scheme.  Yeah boy.....the Foundations of the Fascist System is QUAKING in its boots over your little scheme.  You're a fucking Matlock for sure baby boy.

Now....what about local and state regulations.  There's WAY more to "freedom" than Fed taxes. 

Dude.....I can't tell you HOW many of my friends and assciates have fallen for that whole "Fed taxes are voluntary" bullshit.  Some got away with it for some time too.  Good luck buddy.  But if fucking the Feds out of a few dollars is your idea of Freedom.....then you need to lay off the dope....even if its legal in your state.

sleigher's picture

I was going to ask about 12 USC and US Notes as lawful money.  I understand you must say that the money is redeemed per 12 USC 411, but I have not able to figure out what to do if your company requires direct deposit.  There is no way that I can see to redeem that way with DD.  

Jumbotron's picture

Don't even begin to try it.  Chumbo is lying.  He isn't doing shit.  He's not fucking the Man over.

If he is....it's probably an under the table neighborhood grass mowing outfit he's running.

 

I am fucking Chumbawamba......that is to say.....surround by retards.  And the BIGGEST one of all is Chumbawamba

Murf_DaSurf's picture

 

 

Thanks Jumbo, I felt much better after you wrote that Post, as I was thinking exactly what you wrote about him and his 'clever' moniker post endings...what a dickhead he is!

 

"I am Chumbafucka, I am Perfect, I must STERILIZE myself......STERILIZE......STERILIZE"

http://www.youtube.com/watch?v=G6o881n35GU

dumby's picture

Buckaroo Banzai,

If I were speaking to someone, such as a good friend, who reads the New Republic and The Spectator, I would probably, dishonestly, agree with you and label fascism as "communism" - for the sake of building bridges with well-intentioned, potential allies.

However, I treasure language, where it can be defined, with some strong references, in current usage and history.

I think "National Socialism" is a useful equivalent for "fascism", as it clearly identifies fascism as a collectivist - or, as you might say, "communist" ideology.

See Jonah Goldberg's "Liberal Fascism" as for a reference on this point of view.

However, I think I disagree with Goldberg: though fascism claims collectivist intent, this is simply a smokescreen to mollify the masses, while some 0.01 percent reap the lion's share of rewards, from all "public" projects.

"Communism", as defined by Karl Marx, was a utopian society, which would result AFTER the "withering away of the state". This definition seems equivalent to anarchy, which results from a period of brainwashing, aka "Dictatorship of the Proletariat", after which all individualistic impulses have been eliminated [usually by the practice of geonicide, though Marx didn't write much about such little details as the "Great Leap Forward" or the "Cultural Revolution"].

The world has, so-far, never experienced any such thing as "communism", though many have abused the term, still we have the Communist Manifesto to inform us on proper usage, rather than rely on avowed "anti-communists" to define the term.

Some words burn bridges, some build them.

"Communism" and "Capitalism" mostly burn bridges. "Fascism" seems to build them.

I almost never use the word "capitalism" since it is misunderstood so much, and was never used by Adam Smith, but mostly used, in a derogatory fashion, by its chief detractor, Karl Marx.

Kirk2NCC1701's picture

It's both public and private, and the circumstances dictate what it is at any given time?

Reminds me of the wave-particle duality of light. Interesting.

Escapedgoat's picture

You mean 12 Tribes, right??

But the problem here is the THIRTEENTH TRIBE.

 

junction's picture

A trip down the rabbit hole with no end in sight.

Duffy Duck's picture

yes.

try an foia request.

Da Yooper's picture

Try doing it in yiddish & you will probably get a reply

nmewn's picture

Of course they dodge serf taxation, they're creatures of Congress! ;-)

A Lunatic's picture

Even God endorses the use of Federal reserve notes, or so I read.........

 

/s

813kml's picture

I could see the Fed explaining away their vig as God's endorsement fee that they are collecting on his behalf.

Jendrzejczyk's picture

What's 6% of 1.7 trillion per year add up to? The answer is: Enough to buy a government.