[R-G] A Phone call to the Federal Reserve -- Exposing the Fraud that is the U.S. Capitalist System

Sun Sep 8 19:43:05 MDT 2002

A Phone call to the Federal Reserve

Dan 8:33pm Sun Sep 8 '02
article#11986
http://ontario.indymedia.org:8081/front.php3?article_id=11986&group=webcast

Think the Bank of Canada is any different?? Do you homework!

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A Phone Call To The Fed
>From Dan Benham ©1988-2002
d.benham at worldnet.att.net
9-8-2

The following is a conversation with Mr. Ron Supinski of the Public
Information Department of the San Francisco Federal Reserve Bank. This is an
account of that conversation.

CALLER - Mr. Supinski, does my country own the Federal Reserve System?

MR. SUPINSKI - We are an agency of the government.

CALLER - That's not my question. Is it owned by my country?

MR. SUPINSKI - It is an agency of the government created by congress.

CALLER - Is the Federal Reserve a Corporation?

MR. SUPINSKI - Yes

CALLER - Does my government own any of the stock in the Federal Reserve?

MR. SUPINSKI - No, it is owned by the member banks.

CALLER - Are the member banks private corporations?

MR. SUPINSKI - Yes

CALLER - Are Federal Reserve Notes backed by anything?

MR. SUPINSKI-Yes, by the assets of the Federal Reserve but, primarily by the
power of congress to lay tax on the people.

CALLER - Did you say, by the power to collect taxes is what backs Federal
Reserve Notes?

MR. SUPINSKI - Yes

CALLER - What are the total assets of the Federal Reserve?

MR. SUPINSKI - The San Francisco Bank has $36 Billion in assets.

CALLER - What are these assets composed of?

MR. SUPINSKI - Gold, the Federal Reserve Bank itself and government
securities.

CALLER - What value does the Federal Reserve Bank carry gold per oz. on
their books?

MR. SUPINSKI - I don't have that information but the San Francisco Bank has
$1.6 billion in gold.

CALLER - Are you saying the Federal Reserve Bank of San Francisco has $1.6
billion in gold, the bank itself and the balance of the assets is government
securities?

MR. SUPINSKI - Yes.

CALLER - Where does the Federal Reserve get Federal Reserve Notes from?

MR. SUPINSKI - They are authorized by the Treasury.

CALLER - How much does the Federal Reserve pay for a $10 Federal Reserve
Note?

MR. SUPINSKI - Fifty to seventy cents.

CALLER - How much do they pay for a $100.00 Federal Reserve Note?

MR. SUPINSKI - The same fifty to seventy cents.

CALLER - To pay only fifty cents for a $100.00 is a tremendous gain, isn't
it?

MR. SUPINSKI - Yes

CALLER - According to the US Treasury, the Federal Reserve pays $20.60 per
1,000 denomination or a little over two cents for a $100.00 bill, is that
correct?

MR. SUPINSKI - That is probably close.

CALLER - Doesn't the Federal Reserve use the Federal Reserve Notes that cost
about two cents each to purchase US Bonds from the government?

MR. SUPINSKI - Yes, but there is more to it than that.

CALLER - Basically, that is what happens?

MR. SUPINSKI - Yes, basically you are correct.

CALLER - How many Federal Reserve Notes are in circulation?

MR. SUPINSKI - $263 billion and we can only account for a small percentage.

CALLER - Where did they go?

MR. SUPINSKI - Peoples mattress, buried in their back yards and illegal drug
money.

CALLER - Since the debt is payable in Federal Reserve Notes, how can the $4
trillion national debt be paid-off with the total Federal Reserve Notes in
circulation?

MR. SUPINSKI - I don't know.

CALLER - If the Federal Government would collect every Federal Reserve Note
in circulation would it be mathematically possible to pay the $4 trillion
national debt?

MR. SUPINSKI - No

CALLER - Am I correct when I say, $1 deposited in a member bank $8 can be
lent out through Fractional Reserve Policy?

MR. SUPINSKI - About $7.

CALLER - Correct me if I am wrong but, $7 of additional Federal Reserve
Notes were never put in circulation. But, for lack of better words were
"created out of thin air " in the form of credits and the two cents per
denomination were not paid either. In other words, the Federal Reserve Notes
were not physically printed but, in reality were created by a journal entry
and lent at interest. Is that correct?

MR. SUPINSKI - Yes

CALLER - Is that the reason there are only $263 billion Federal Reserve
Notes in circulation?

MR. SUPINSKI - That is part of the reason.

CALLER - Am I mistaking that when the Federal Reserve Act was passed (on
Christmas Eve) in 1913, it transferred the power to coin and issue our
nation's money and to regulate the value thereof from Congress to a Private
corporation. And my country now borrows what should be our own money from
the Federal Reserve (a private corporation) plus interest. Is that correct
and the debt can never be paid off under the current money system of
country?

MR. SUPINSKI - Basically, yes.

CALLER - I smell a rat, do you?

MR. SUPINSKI - I am sorry, I can't answer that, I work here.

CALLER - Has the Federal Reserve ever been independently audited?

MR. SUPINSKI - We are audited.

CALLER - Why is there a current House Resolution 1486 calling for a complete
audit of the Federal Reserve by the GAO and why is the Federal Reserve
resisting?

MR. SUPINSKI - I don't know.

CALLER - Does the Federal Reserve regulate the value of Federal Reserve
Notes and interest rates?

MR. SUPINSKI - Yes

CALLER - Explain how the Federal Reserve System can be Constitutional if,
only the Congress of the US, which comprises of the Senate and the House of
representatives has the power to coin and issue our money supply and
regulate the value thereof? [Article 1 Section 1 and Section 8] Nowhere, in
the Constitution does it give Congress the power or authority to transfer
any powers granted under the Constitution to a private corporation or, does
it?

MR. SUPINSKI - I am not an expert on constitutional law. I can refer you to
our legal department.

CALLER - I can tell you I have read the Constitution. It does NOT provide
that any power granted can be transferred to a private corporation. Doesn't
it specifically state, all other powers not granted are reserved to the
States and to the citizens? Does that mean to a private corporation?

MR. SUPINSKI - I don't think so, but we were created by Congress.

CALLER - Would you agree it is our country and it should be our money as
provided by our Constitution?

MR. SUPINSKI - I understand what you are saying.

CALLER - Why should we borrow our own money from a private consortium of
bankers? Isn't this why we had a revolution, created a separate sovereign
nation and a Bill of Rights?

MR. SUPINSKI - (Declined to answer).

CALLER - Has the Federal Reserve ever been declared constitutional by the
Supreme Court?

MR. SUPINSKI - I believe there has been court cases on the matter.

CALLER - Have there been Supreme Court Cases?

MR. SUPINSKI - I think so, but I am not sure.

CALLER - Didn't the Supreme Court declare unanimously in A.L.A. Schechter
Poultry Corp. vs. US and Carter vs. Carter Coal Co. the corporative-state
arrangement an unconstitutional delegation of legislative power? ["The power
conferred is the power to regulate. This is legislative delegation in its
most obnoxious form; for it is not even delegation to an official or an
official body, presumptively disinterested, but to private persons." Carter
vs. Carter Coal Co...]

MR. SUPINSKI - I don't know, I can refer you to our legal department.

CALLER - Isn't the current money system a house of cards that must fall
because, the debt can mathematically never be paid-off?

MR. SUPINSKI - It appears that way. I can tell you have been looking into
this matter and are very knowledgeable. However, we do have a solution.

CALLER - What is the solution?

MR. SUPINSKI - The Debit Card.

CALLER - Do you mean under the EFT Act (Electronic Funds Transfer)? Isn't
that very frightening, when one considers the capabilities of computers? It
would provide the government and all it's agencies, including the Federal
Reserve such information as: You went to the gas station @ 2:30 and bought
$10.00 of unleaded gas @ $1.41 per gallon and then you went to the grocery
store @ 2:58 and bought bread, lunch meat and milk for $12.32 and then went
to the drug store @ 3:30 and bought cold medicine for $5.62. In other words,
they would know where we go, when we went, how much we paid, how much the
merchant paid and how much profit he made. Under the EFT they will literally
know everything about us. Isn't that kind of scary?

MR. SUPINSKI - Yes, it makes you wonder.

CALLER - I smell a GIANT RAT that has overthrown my constitution. Aren't we
paying tribute in the form of income taxes to a consortium of private
bankers?

MR. SUPINSKI - I can't call it tribute, it is interest.

CALLER - Haven't all elected officials taken an oath of office to preserve
and defend the Constitution from enemies both foreign and domestic? Isn't
the Federal Reserve a domestic enemy?

MR. SUPINSKI - I can't say that.

CALLER - Our elected officials and members of the Federal Reserve are guilty
of aiding and abetting the overthrowing of my Constitution and that is
treason. Isn't the punishment of treason death?

MR. SUPINSKI - I believe so.

CALLER - Thank you for your time and information and if I may say so, I
think you should take the necessary steps to protect you and your family and
withdraw your money from the banks before the collapse, I am.

MR. SUPINSKI - It doesn't look good.

CALLER - May God have mercy on the souls who are behind this
unconstitutional and criminal act called the Federal Reserve. When the
ALMIGHTY MASS awakens to this giant hoax, they will not take it with a grain
of salt. It has been a pleasure talking to you and I thank you for your
time. I hope you will take my advice before it does collapse.

MR. SUPINSKI - Unfortunately, it does not look good.

CALLER - Have a good day and thanks for your time.

MR. SUPINSKI - Thanks for calling.

If the reader has any doubts to the validity of this conversation, call your
nearest Federal Reserve Bank, YOU KNOW THE QUESTIONS TO ASK! You won't find
them listed under the Federal Government. They are in the white pages, along
with Federal Express, Federal Deposit Insurance Corp. (FDIC), and any other
business. Find out for yourself if all this is true.

And then, go to your local law library and look up the case of Lewis vs. US,
case #80-5905, 9th Circuit, June 24, 1982. It reads in part: "Examining the
organization and function of the Federal Reserve Banks and applying the
relevant factors, we conclude that the federal reserve are NOT federal
instrumentality's . . but are independent and privately owned and controlled
corporations - federal reserve banks are listed neither as "wholly-owned'
government corporations [under 31 USC Section 846] nor as 'mixed ownership'
corporations [under 31 USC Section 856] . . . 28 USC Sections 1346(b), 2671.
'

Federal agency' is defined as: the executive departments, the military
departments, independent establishments of the United States, and
corporations acting primarily as instrumentality's of the United States, but
does not include any contractors with the United States . . . There are no
sharp criteria for determining whether an entity is a federal agency within
the meaning of the Act, but the critical factor is the existence of the
federal government control over the 'detailed physical performance' and 'day
to day operations' of that entity.

Other factors courts have considered include whether the entity is an
independent corporation . . . whether the government is involved in the
entity's finances, . . . and whether the mission of the entity furthers the
policy of the United States . . . Examining the organization and function of
the Federal Reserve Banks, and applying the relevant factors, we conclude
that the Reserve Banks are not federal instrumentalities ...

It is evident from the legislative history of the Federal Reserve Act that
Congress did not intend to give the federal government direction over the
daily operation of the Reserve Banks . . . The fact that the Federal Reserve
Board regulates the Reserve Banks does not make them federal agencies under
the Act . . . Unlike typical federal agencies, each bank is empowered to
hire and fire employees at will. Bank employees do not participate in the
Civil Service Retirement System. They are covered by worker's compensation
insurance, purchased by the Bank, rather than the Federal Employees
Compensation Act.

Employees traveling on Bank business are not subject to federal travel
regulations and do not receive government employee discounts on lodging and
services . . . Finally, the Banks are empowered to sue and be sued in their
own name. 12 USC Section 341. They carry their own liability insurance and
typically process and handle their own claims . . ." According to the
Federal Reserve Bank of Philadelphia, "When the Federal Reserve was created,
its stock was sold to the member banks." ("The Hats The Federal Reserve
Wears," published by the Federal Reserve Bank of Philadelphia).

The original Stockholders of the Federal Reserve Banks in 1913 were the
Rockefeller's, JP Morgan, Rothschild's, Lazard Freres, Schoellkopf,
Kuhn-Loeb, Warburgs, Lehman Brothers and Goldman Sachs. The MONEYCHANGERS
wanted to be insured they had a monopoly over our money supply, so Congress
passed into law Title 12, Section 284 of the United States Code. Section 284
specifically states, "NO STOCK ALLOWED TO THE US" *

Monopoly - "A privilege or peculiar advantage vested in one or more persons
or companies, consisting in the exclusive right [or power] to carry on a
particular business or trade, manufacture a particular article, or control
the sale of the whole supply of a particular commodity, A form of market
structure in which only a few firms dominate the total sales of a product or
service.

'Monopoly,' as prohibited by Section 2 of the Sherman Antitrust Act, has two
elements: possession of a monopoly power in relevant market and willful
acquisition or maintenance of that power, as distinguished from growth or
development as a consequence of a superior power, business acumen, or
historical product. A monopoly condemned by the Sherman Act is the power to
fix prices, or exclude competition, coupled with policies designed to use
and preserve that power." (Black's Law Dictionary, 6th Edition) The Federal
Reserve Act goes one step farther, "No Senator or Representative in Congress
shall be a member of the Federal Reserve Board or an officer or director of
a Federal Reserve Bank." They didn't want We The People to have any say in
the operation of their monopoly through our elected officials.
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trade-name/trade-mark, DANIEL DOYLE BENHAM©-as well as any and all
derivatives and variations in the spelling of said
trade-name/trade-mark-Copyright© 1988 by Daniel Doyle Benham.