SF Fed confirms that they are a private corporation that pays dividends to shareholders
Recently Humboldt State University was visited by David Lang and Yelena Takhtamanova from the Federal Reserve Bank of San Francisco where they presented some information about the Federal Reserve System.
I, along with the department, took video of this event. While I was unable to take footage of the entire event, I was able to get David Lang’s presentation as well as a short portion of a question and answer period.
There were also presentations from students from an Economics class. Each group had to play the role of a private central banking head for each of the 12 Federal Reserve Branch banks. They had to make policy suggestions for the Federal Reserve banking system going forward.
Some of the groups had the right idea with the suggestion to remove the extra 0.25% interest being paid on excess reserves held with the Federal Reserve. This is a big problem and those groups got it right.
David Lang presented first, and a notable point is that at the 14 minute mark in the video below he explained that the Federal Reserve banking system paid back $ 78 billion to the US Treasury in 2010. It needs to be noted that he did not discuss the interest that the Federal Reserve charges on the currency in circulation.
What about the $ 189 billion paid to FRB on interest to service the debt in 2010? Wiki, a much less reputable source than the GAO, reports this number as $ 164 billion. Regardless, it is more than double what the Federal government spends on education.
The fact that money, the US Dollar, a Federal Reserve debt note, an instrument of debt, is on the bottom portion of the balance sheet of the Federal Reserve, the liabilities side, is direct proof that each US dollar gains interest and that the Federal Reserve system is paid interest on that same debt, the national debt.
David Lang and Yelena Takhtamanova both specifically showed the balance sheet of the Federal Reserve banks, and ‘Currency in circulation’ can clearly be seen as a liability. As we know, the government does not have to issue debt in order to create currency but the Federal Reserve, in order to keep control over the debt slaves,(U.S. taxpayers) does anyway.
Another issue is the fact that while that curve for the currency in circulation looks reasonably tame, keep in mind that the fractional reserve banking system and how banks can lend out 10x(and more in certain cases) on each additional dollar in circulation.
The $ 100 billion printed in October of 2008 really amounted to $ 1 trillion of financial ‘stimulation’(really the weakening of the dollar) considering the ponzi scheme of irrational fractional reserve banking.
During his presentation, David Lang asked the audience if they could name who audits the Federal Reserve. No one in the room was able to answer except for me at 12:45 in the video. I answered with the GAO. I have reviewed many GAO reports to see the corruption hidden within the government, military, and private institutions.
At 28:25 in the video, an Occupy Humboldt protester asks important questions concerning the Federal Reserve, money, debt, the national debt, and inflation. I am not sure if he may have articulated himself as well as he wanted, but his concerns are very important, and were disregarded by the Fed reps.
David Lang even goes as far as to echo Yelena Takhtamanova’s simply explanation of what money is. I’m not sure if he was prepared for the many questions asked but, regardless, his weak non-answer to the Occupy protester proves he is just a pawn in the big picture of things at the Fed of San Francisco.
I then asked my question at 31:06, concerning the Federal Reserve bank of San Francisco and whether it was formed as a private institution. He confirmed that it is. He also confirmed that they pay dividends to their shareholders.
He then quickly reiterated the fact that the Federal Reserve banks paid back profits to the US Treasury. Again this was to cover the main point that the Federal Reserve charges and is paid interest on our debt.
Regardless, I was clearly able to capture video of a representative of a Federal Reserve bank confirming that they are indeed a private institution.
David Lang’s confirmation flies directly in the face of the lies being pushed by the ill-representing ‘FederalReserve.gov’ site.
‘FederalReserve.gov’ even goes as far as to say , “It is not “owned” by anyone and is not a private, profit-making institution.” They are able to get away with this outright lie because the lines between the Federal Reserve Banking System and each of the 12 private central banks that make it up are sometimes muddled on purpose as we have seen.
Each of the 12 individual private Federal Reserve banks charge and receive interest for profit.
What’s even worse about this visit is that these representatives were giving audience information with the supposition that inflation and unemployment would be going down in the future. What they failed to tell the students and the rest of their audience is that their specific bank just posted a report forecasting a 50% chance of global economic recession by the end of Q1 2012.
I suppose that this important information wasn’t important enough to pass along to the students who will soon be out looking for jobs in the marketplace.
I am a Humboldt State University Class of ’09 alumni, School of Business with an empasis in Accounting, and I personally take offense to the Federal Reserve of San Francisco coming to speak with students and not passing this information along.
There were were also awake individuals from the community in attendance who asked many important questions during the question and answer session at the end of the presentation after I had stopped recording due to battery issues.
There was a gentleman who spoke about the Weimar Republic and the hyperinflation that occured there in the years after the turn of the last century, and asked what the Federal Reserve would do to prevent a similar situation. Yelena from the San Francisco Fed replied, “That is why we are in place.” This is specifically not the answer the gentlemen was looking for i’m sure.
I was able to ask a specific question but unfortunately received an irrelevant answer from Fed Rep. David Lang. I first told David and Yelena that I wanted to ask for their feedback on an alternative policy decision, as the presentations by the students were articulating different policy decisions that the Fed could take.
I explained to everyone that in Bill Still’s ‘The Secret of Oz’, Ellen Brown, the economist and author of ‘Web of Debt‘ presented a policy option. She proposed that rather than the government issuing debt in the form of interest bearing bonds for money, we could use the current authority granted to Congress under the Constitution to allow there to be a few trillion dollar-a-piece coins to be deposited into banks.
This would be creating money as an asset instead of a liability, a debt to be charged interest and repaid to the Federal Reserve. This would be stimulative to the economy and not require the Federal Reserve to buy up corporate and government bonds in it’s LSAP(QE) measures.
Instead of any kind of economic policy discussion, David Lang simply told me that this was a ‘legal’ question. A gentleman, more than likely like-minded to myself, quickly chimed in, ‘What he’s talking about is the US Constitution, Article 1, Section 8, and it’s one sentence.”
I nodded my head in agreement. Still, David Lang stonewalled the discussion and persisted it was a legal issue. I did not want to press him or Yelena.
They are not specifically the problem. They are obviously a part of the problem, but do not seem versed enough on the truth behind the corporation they work for. And as this was a student hosted event, I did not want to aggravate any situation. There are hundreds of questions I could have asked these representatives, but I doubt they would be able to shed any light on most of them.
Fortunately, due to the efforts against the Federal Reserve from people like Ron Paul and Bernie Sanders, there have been audits and information revealed pertaining to some of the really unforgivable corruption being perpetrated by the Federal Reserve.
It would seem as if the global power structure is going to be changing quite a few things around with the next collapse and major restructuring, especially considering the fact that the Fed has been in talks with the ECB as we have recently seen. Even the Pope and the Vatican side of the global power structure has called for a world central bank.
Anyone who has been following economics or news information knows that the global economic collapse is imminent. As I said stated before, the Fed of San Francisco says it’s a 50/50 chance. Even though this was not communicated to the students, many people of all ages are awake to the seriousness of the approaching calamity.
I encourage everyone worldwide to continue their efforts against the control system and especially the unsound central banks like the Federal Reserve and ECB.
If you would like to contact the two representatives from the San Francisco branch of the Federal Reserve their respective email addresses are below.
This is the entire video footage that I recorded during the recent visit to HSU by two representatives of the Federal Reserve Bank of San Francisco.