Has anyone read the book entitled "The Secrets of the Federal Reserve" written by Eustace Mullins. Thoughts?
Recently a Chinese Professor who teaches at my college in Tennessee strongly recommended that I read "Secrets of the Federal Reserve," by Eustace Mullins (1984) which is found within the college library. I read the entire book, and found myself amazed at both the accusations and implications set forth in the book.
However, after pondering the material, I am very skeptical of the material written within the book. Have you read this book, and are the statements in the book factual, or mere unfounded speculation? Why would a college professor with a doctorate recommend such a book if the material in the book was not true?
Answers:
Even relatively smart people can be misled into believing in a conspiracy theory and that is exactly what is in that book.
The structure and status of the Federal Reserve is CLEARLY defined BY LAW. U.S. Code, Title 12, Chapter 3 covers the structure and governance of the Federal Reserve system. http://www.law.cornell.edu/uscode/html/u...
If people would learn how the Federal Reserve system works and how it is structured they wouldn't base their beliefs on conspiracy theories or some quote taken out of context.
The Federal Reserve System is controlled by a Board of Governors, also known as the Federal Reserve Board. The Board of Governors, located in Washington, D.C., provides the leadership for the System.
The Board of Governors is the national component of the Federal Reserve System. The board consists of the seven governors, appointed by the president and confirmed by the Senate. Governors serve 14-year, staggered terms to ensure stability and continuity over time. The chairman and vice-chairman are appointed to four-year terms and may be reappointed subject to term limitations.
A network of 12 Federal Reserve Banks and 25 branches make up the Federal Reserve System under the general oversight of the Board of Governors. Reserve Banks are the operating arms of the central bank.
Each of the 12 Reserve Banks serves its region of the country, and all but one have other offices within their Districts to help provide services to depository institutions and the public. The Banks are named after the locations of their headquarters-Boston, New York, Philadelphia, Cleveland, Richmond, Atlanta, Chicago, St. Louis, Minneapolis, Kansas City, Dallas, and San Francisco.
The Reserve Banks serve banks, the U.S. Treasury, and, indirectly, the public. A Reserve Bank is often called a "banker's bank," storing currency and coin, and processing checks and electronic payments. Reserve Banks also supervise commercial banks in their regions. As the bank for the U.S. government, Reserve Banks handle the Treasury's payments, sell government securities and assist with the Treasury's cash management and investment activities. Reserve Banks conduct research on regional, national, and international economic issues. Research plays a critical role in bringing broad economic perspectives to the national policymaking arena, and supports Reserve Bank presidents who all attend meetings of the Federal Open Market Committee (FOMC).
Each Reserve Bank's board of directors oversees the management and activities of the District bank. Six of the nine board members of a district bank are selected by the member banks with approval of the Board of Governors. The other three board members are chosen directly by the Board of Governors. Reflecting the diverse interests of each District, these directors contribute local business experience, community involvement, and leadership. The board imparts a private-sector perspective to the Reserve Bank. Each board appoints the president and first vice president of the Reserve Bank, subject to the approval of the Board of Governors.
All member banks hold stock in Reserve Banks and receive dividends. Unlike stockholders in a public company, banks cannot sell or trade their Fed stock and the amount of stock held by each member bank is set by law to a certain amount of the member banks' capital. This allows the Fed to have some direct control over a portion of the reserves a member bank is required to have. Reserve Banks interact directly with banks in their Districts through examinations and financial services and bring important regional perspectives that help the entire Federal Reserve System do its job more effectively. Additionally, by law, private individuals, non-banking corporations, and foreign corporations cannot own more than a tiny amount of Federal Reserve stock and these small owners have no say in the operation of the banks.
Approximately 38 percent of the 8,039 commercial banks in the United States are members of the Federal Reserve System. National banks must be members; state-chartered banks may join if they meet certain requirements. The member banks are stockholders of the Reserve Bank in their District and as such, are required to hold 3 percent of their capital as stock in their Reserve Banks.
As far as reserves, the Federal Reserve Board of Governors sets requirements for the amounts that member banks and depository institutions must set aside in the form of reserves. Reserve requirements act as a control on the expansion of money and credit and may be raised or lowered within limits specified by law (lowering reserve requirements allows more bank lending and money growth; raising requirements, less lending and money growth).
Another interesting fact: The Federal Reserve owns outright $11 billion in gold reserves as evidenced by the Fed's balance sheet. http://www.federalreserve.gov/releases/h...
Another interesting fact #2: The Federal Reserve is required by law to rebate interest collected on U.S. Government debt to the U.S. Treasury.
Another interesting fact #3: The Federal Reserve only holds about 8% of the total U.S. debt. Another 44% is held by THE U.S. GOVERNMENT! Yes, the government lends money to itself. Only about 47 to 48% of the total U.S. debt is held by private individuals, corporations and foreign governments.
http://www.fms.treas.gov/bulletin/index.
http://www.treasurydirect.gov/np/bpdlogi...
Individual income taxes do not all go to pay the interest of government debt. A little common sense can show that they don't. Current government debt is $8.8 trillion. The government collected $1.04 trillion in individual income taxes in 2006. In order for all income taxes to pay for interest on the debt, the interest rate would have to be 11.8%. It is not anywhere near that. Interest rate on government debt is usually between 4 and 5%.
Finally, you can completely ignore "Freedom to Fascism", it is completely wrong. There is a law concerning taxes, it is USC Title 26. If someone walked up to you on the street and asked you if you knew what is the law concerning income tax. Would you be able to answer? How about these other questions, is there a law covering non-payment of child support? Is there a law covering counterfeiting? Is there a law covering arson? Is there a law covering embezzlement? Is there a law covering extortion? Is there a law covering fraud? Is there a law covering kidnapping? Is there a law covering perjury? Is there a law covering piracy? Is there a law covering racketeering? Is there a law covering burglary? Is there a law covering conspiracy? Is there a law covering assault? Is there a law covering murder? Can you name them? You can't without having to look them up, can you? Most people wouldn't be able to either if you approached them on the street. However, you know that they exist.
You know all of those are covered by a law because if there wasn't a law against those acts, you couldn't be charged in criminal court for committing those acts. It is the same with failure to file income taxes. If there wasn't a law covering the requirement to file and pay income taxes, you couldn't be charged in criminal court with failing to file income taxes or tax evasion.
I digress, read the following website for more information on the Federal Reserve.
http://www.geocities.com/capitolhill/emb...
Do you hear political candidates talking about the Federal Reserve? Does the mainstream media ever question it's existence? Do most people know how it works? Those reasons alone confirm the truth of the book.
There is a movie called freedom to fascism. It can be watched on the net free. I understand your confusion, it is hard to know the truth of our world. my friend, it only gets worse. be ready to be called a conspiracy theorist that needs a tin foil hat...lol.
it sucks to be shunned teaching the truths. and it is hard to believe our country is so corrupt.but it is true... the elite own us... we are slaves. there is enough resources to go around,,, they make us think there is not.
actually Ron Paul and one other candidate wants to dissolve the federal reserve and are called nuts by the majority... they do not understand,,,,
I found the book online at http://www.apfn.org/apfn/doc/reserve.doc... and took a look. (I've also read "Secrets of the Temple" and half of "Creature from Jekyl Island" and some other academic books on the topic)
I think you have a right to be skeptical about the book. It's a bizarre compilation of dubious conspiratal connections that span across time and space.
The main problem I have with it is presenting a lot of things out of context. For instance, Jefferson's concerns about the power of banks was right on for the time, but I think he would have approved of the agency as it now stands.
I will say there was originally foundation for concern.The original invocation of the Federal Reserve system was flawed and did indeed put lopsided power with the private banks. That changed in 1935 when absolute power over the system was centralized with the Board of Governors, a government agency. The branches have significant influence from private banks but no longer have any real power over interest rates or the money supply.
Rothschild? Warburg? Aldich? All very powerful men in their time with self-serving intentions. But times have changed.
The Rothschilds banking empire is a shadow of a once great banking empire. Most of their banks have been closed a long time ago (ref: http://en.wikipedia.org/wiki/rothschilds... and
http://www.answers.com/topic/rothschild-...
The Warburgs were forced out of banking in Europe due to the rise in anti-semitism. From wikipedia: " Virtually all members of the Warburg family had fled to the United States or Great Britain by 1938." (ref: http://en.wikipedia.org/wiki/warburg_fam...
The Bank of England was nationalized in 1946. It is a government institution. There are no shareholders. (Ref: http://www.bankofengland.co.uk/about/his... )
Bottom line: This book is a good exercise in conspiratal thinking but not a good historical reference
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