Federal Reserve, Cause of Financial Crisis in America

The Federal Reserve is the centerpiece and enabler of the corruption and financial crisis that has occurred, and is continuing to occur in America. It is nothing more than a giant monetary fraud scheme. In an ideal case banks would have good and high integrity management. In conducting their financial business of banking, loans would be given out to individuals, corporations, and institutions based upon the borrower's ability to pay back the loans...both good business and common sense. The banks, and their investors, could maintain their financial integrity as well as showing a profit. This is the way that it should be.

The Federal Reserve, however, in collusion with the larger banks, have BY DESIGN allowed greed and corruption to take over...all at the expense of the American taxpayer. The profit from good loans wasn't enough, there was more "profit" that they could extract. Much more. This has accelerated even more after the elimination of the gold standard in America in 1971. The Federal Reserve can now, at will, issue "paper", or money, whenever it wants to. Nothing has to back it up. The already existing scheme, could now be accelerated. The scheme consists of loaning out tons of money...to individuals, corporations, institutions, 3rd world countries...practically anybody, IRRESPECTIVE OF THEIR ABILITY TO PAY BACK. These banks then derive huge amounts of apparent profits simply from the income stream from the interest payments on these loans. The game then becomes to keep the income stream flowing. When the interest income stream stops due to the inability to pay, there are two things that can be done to get it flowing again:

1) Re-do the loan, or turn it over to a new loan, issue more money (paper) to the borrower, and keep the interest income (profit) flowing. The bank's financial performance looks great, everybody is happy.

2) You have heard the phrase "too big to fail". Typically special interest groups will go before the Congress, to tell their stories of how it will cause a financial crisis, unemployment, greatly affect education, children, the poor, etc., etc. Congress responds with a 'bail out". This time the American taxpayer pays the bill rather directly. It does with 1) above, as well, but in this case it is more direct. Sound familiar? The American people have heard about the massive bail outs that have occurred recently, however, under reported have been a fairly constant stream of smaller bail outs occurring right along, hundreds of million, and even billions of dollars. With these bail outs the financial performance of the banks (and borrower) gets back on track, everybody is happy...except for the taxpayers, that is, who foot the bill.

Widespread corruption and outright thievery exists within the Federal Reserve, with the top management of major banks, and with many of those behind the scenes in these organizations. Hundreds of millions of dollars are taken in salaries, bonuses, and other forms of "compensation". This is their reward for executing the scheme outlined above. A fairly recent publicized example is Franklin Raines, former Vice Chairman of Fannie Mae, who walked away with over $90 million after a brief stay...an organization that not only failed, but helped bring on the financial crisis in America. Many of the top executives of major banks such as Bank of America, JP Morgan Chase & Company, Goldman Sachs and others, seem always to be able to circle back into high level positions in the federal government. In their positions of influence in government they are able to perpetuate the scheme and keep the cycle going.

The Federal Reserve Bank should be audited. The FED has too great, and somewhat of an invisible influence on the American economy and America itself. All of their controlling people, activities, directions, policies, plans, etc. should be completely visible to the American people with periodic audits. Even the elimination of the Federal Reserve Bank should be considered.

There needs to be REAL federal oversight (not control) of banking in America for the protection of our country, and for the protection of taxpayers. What we have going on now is a complete and corrupt farce. Strict rules of lending and borrowing should be put in place based upon good financial business practice and common sense.

Freddie Mac and Fannie Mae should be eliminated as federal government sponsored enterprises. Mortgage, banking, and acting as an intermediary on mortgages, lending, etc. should cease. These institutions have been riddled with corruption, political paybacks, executive pay scandals, and more...and they are one of the prime reasons behind the current failure of our economy. Banking, lending, and mortgage functions should be private, not government controlled. Cut out the cancer.


The American people are given diversions by blaming the financial crisis in America on "Wall Street", greedy corporations, and other such blame recipients. There is no doubt that some corruption and greed does exist with these entities. The centerpiece of greed and corruption, however, lies with the Federal Reserve and some of our nations largest banks. They are the ones primarily responsible for the financial crisis that exists in our country. They are the ones that deserve our immediate attention. And it is going to get worse. Already well on the way is another global organization, veiled in secrecy, The International Monetary Fund. The IMF is set up to control international finance and you can bet it will NOT be for the betterment of the people of the world. Corruption, greed, and control can be expected.

Our first step is to stop the Federal Reserve, America's major banks, and those behind them from continuing their 'scheme" that is destroying America. Both parties of Congress and successive administrations have allowed this giant monetary fraud scheme to operate for many, many years. Some corrupt elected and appointed high ranking officials in government have supported the Federal Reserve and major banks in this continuing scheme.

What we need is a public outcry. What we need are honest and courageous members of Congress to stand up to the Federal Reserve and major banks on the ongoing monetary fraud scheme that is destroying America. There needs to be a sense of urgency in order to save America.