How the Fed Works: A Massive Conflict of Interest

Posted by on June 9, 2014 in Agencies & Systems, Bankers & Wall St. with 1 Comment

Simon Black Sovereign Man | June 9, 2014

Henry Ford once said, “It is well that the people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning.”

He was right about at least one thing– it's true that hardly anyone on the planet really understands the monetary system… or the way that central bankers manipulate the entire global economy.

I've met some seriously smart people who are very high up in finance. Senior bankers, traders, fund managers, etc. And even -they- don't really understand it.

Everyone just presumes that there are some really smart guys and gals who make policy decisions from their ivory towers. We're told that they know what they're doing, and we're just all supposed to trust them.

People erroneously believe that it's somehow controlled by the government… in the US, for example, the President of the United States appoints members of the Federal Reserve Board of Governors.

Right now there are 4 presidentially-appointed Fed governors. 

Meanwhile there are 12 Federal Reserve Bank presidents who influence the decisions of the all-powerful Federal Open Market Committee (FOMC).

Remember, the FOMC is the body within the Fed that essentially dictates monetary policy. It is the FOMC which decides how much money to print, and whether or not to loan this money to commercial banks at basically 0%.

All 12 Fed bank presidents sit in those meetings. 5 of them are actually voting members. 

It certainly begs the question– how are the Fed bank presidents chosen? 

Simple. Each of the 12 Federal Reserve banks has a board of directors… 9 directors at each bank. And the board selects the bank president. 

So who gets to pick the Fed bank directors? The government, right? Wrong.

The majority of the directors are chosen by the commercial banks themselves. JP Morgan. Bank of America. Citigroup. Etc.

It is the BANKS who pick the directors who pick the presidents who dominate the committee which decides to loan money back to the banks at 0% interest.

How is this not a MASSIVE conflict of interest? Are we to believe that the interests of JP Morgan, Bank of America, and Citigroup are aligned with our own interests? I highly doubt that. 

It is this topic that I explore in today's podcast. And I highly recommend it because it's critical that anyone participating in this system really understands how it works, and from whom it is rigged (spoiler alert: it isn't rigged to your benefit).

It's been a few weeks since I've recorded a podcast, so today's is an extended episode, with both audio and video versions available. You can download it in the iTunes store, or from our website here:

When you're finished with that, I also recommend checking out what my colleague Tim Price wrote on the European Central Bank's recent decision to bring interest rates down BELOW zero. Again– just think about who benefits from this…

You can read Tim's piece here:


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  1.' spacenergymass says:

    Stanley Fischer holds dual citizenship in Israel and the United States.He served as governor of the Bank of Israel from 2005 to 2013. He previously served as chief economist at the World Bank.On January 10, 2014, United States President Barack Obama nominated Fischer to be Vice-Chairman of the US Federal Reserve System. (May 28, 2014, 3:03 PM ET) — The Federal Reserve on Wednesday swore in Israel’s former top banker Stanley Fischer to its board of governors, formally filling the position left vacant by Janet Yellen. Fischer is disliked because of his ruthless neoliberalism, as proven by his behavior with the International Monetary Fund, where he was once an executive. The thought that Stanley Fischer, a former Vice Chairman of the serially corrupt Citigroup, could become Vice Chairman of the Federal Reserve, a regulator of mega banks like Citigroup, is not a source of comfort. During Fischer’s stint at Citigroup, from February 2002 through April 2005, he “amassed a personal fortune of between $14.6 million and $56.3 million” according to Bloomberg News. During that same period, Citigroup was repeatedly charged with fraud and embarked on its own exotic financial shenanigans that would end up collapsing the firm in 2008.

    On April 28, 2003, the SEC charged that the investment banking business of Citigroup, Salomon Smith Barney, issued “fraudulent” research on telecommunications companies to promote its investment banking business. Jack Grubman, the company’s star telecom analyst, was the point man in the fraud according to the SEC and Citigroup rewarded him handsomely for it. The SEC noted in its complaint that “between 1999 and August 2002, when he left the firm, Grubman’s total compensation exceeded $67.5 million.”

    Grubman was forced out of Citigroup in August 2002, while Fischer served on its Board. The New York Times noted dryly in an editorial at the time,

    My question is the following: do Jews in general know about the Rothschild Zionists, and their plan for world domination? Is there a large section of Jews, who like most Americans, lumber in deep sleep as to what is happening? I would think that if most good Jews, knew of the situation in truth, they would be outraged, and begin to take action to prevent this evil from continuance. It is time to begin communication with all of our friends, relatives, and community at large, to bring this awareness to the forefront. The Zionists will use and manipulate even their own tribe in order to rule our planet. For the article source above visit Wall Street on Parade. It is time for all New Agers to become more active, rather then simply praying and affirming. Peace comes with awareness of those who would do us harm.

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