Is the Federal Reserve Bank Legal?

The Federal Reserve Bank was started in 1913 after the depression of 1907. While many scholars point to many technical reasons for its creation the main purpose came down to an attempt to eliminate the politics from financial decisions.

One of the big problems that has plagued the monetary system is that banks are required by regulation to hold only a small portion of money from depositors. When there is a blip in the economy, the banks have only a short supply of money and become unstable.

Without regulation banks would be on their own without any gaurantees from the Federal Reserve or government. Banks would be forced to hold on to much more of their depositor's money by their own business models. Loans and other services would be more prudent and less risky.

The Federal Reserve is charged with maintaining value of money, addressing economic panics, controlling interest rates, and supervising and regulating the banking industry, printing money, and bailing out banks in dire times. You can read more about the Federal Reserve and its purpose here.

The Federal Reserve is owned by the all the banks across the country and they contribute the funding needed to maintain the Fed.

A major problem of the Fed has been the pestilence of politicians who have weaseled their way into the system through regulation. These regulations benefit the politicians directly by generating funds for special interest in return for campaign contributions. Politicians use most of this money for re-election and donate small amounts to local groups in their districts to secure votes. These groups will then advertise their support garnishing more votes.

Another major problem is that the banks could never contribute enough money to keep the system solvent in a total meltdown. Each bank would have to contribute 100% of their deposits to keep the system secure. This is impossible because there would be no money to loan and no money for depositors to withdraw. The banks could not meet their operating cost and would not make any profit. In a serious recession as the one we are in now, the only option is to have the taxpayer bail out the unstable banks – which has and still is happening as more and more banks fail every day.

But is the Fed a legal entity?

Article I Section 8 of the Constitution of the United States of America states:

The Congress shall have Power… To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures;…

The law clearly states and charges Congress with this responsibility. The law does not allow congress to discharge or out source its monetary duties. This is crystal clear.

The Federal Government has no business, by law, for bailing out banks, regulating interest rates, addressing economic panics, or regulating the banking industry. These issues belong to the states constitutionally and ultimately the individual financial institutions.

The Federal Government has grown too powerful because our politicians ignore law and make their own rules. As a result we are not protected by the law and are subject to the fallout created by self serving political aspirations.

The Federal Reserve is and has been a failure from day one. Not only does it not work, but the Federal Reserve has been a political focal point for generating regulations and political favors.

The Federal Reserve should be dissolved and all of the supporting players should be prosecuted for failing to uphold their oath of protecting and defending the Constitution.

What’s in your wallet?

More by this Author


Comments 16 comments

James A Watkins profile image

James A Watkins 7 years ago from Chicago

Amen! This is a fine article and of course, I agree with you. The Federal Reserve is illegal under our original Constitution. They have only increased the amount of dollars in circulation by 50% in the last six months. Inflation has to be next.


Tom Whitworth profile image

Tom Whitworth 7 years ago from Moundsville, WV

The first big test the Fed had it failed miserably. It did the exact wrong thing for the people. At the beginning of the Great Depression the Fed shrank the money supply causing no available credit, along with deflation. Although prices declined none but the rich had any money to buy the cheaper goods and services. With no available credit no business could borrow to expand and supply additional jobs.

This initial fiasco of the Fed should have told the people that this Unconstitutional entity was only a tool of the rich for perpetuating their wealth.


Neil Sperling profile image

Neil Sperling 7 years ago from Port Dover Ontario Canada

The Federal Reserve should be dissolved and all of the supporting players should be prosecuted for failing to uphold their oath of protecting and defending the Constitution.

That says it all


MikeNV profile image

MikeNV 7 years ago from Henderson, NV

How the Fed has managed to stay under the radar of the people for so long, and how politicians can continue to sort this institution of greed is beyond my comprehension. I'd like to think the American Public is smart enough to see through this scam... but clearly not yet. Voting up!


Lisafrequency 6 years ago

I guess you know about Ron Paul's battle to audit the fed?


Chris was here 5 years ago

I hope the American people wake up soon. We need to get rid of the fed, and go back to the gold standard.


cynamans profile image

cynamans 4 years ago from Washington DC

Hey I'm with you buddy,

Get rid of the Federal Reserve. Voted up, useful and awesome.


joer4x4 profile image

joer4x4 4 years ago from Philadelphia, PA Author

Thank you!


Thomas J. Y. 4 years ago

Is it true that none is allowed to get inside FED buildings?


joer4x4 profile image

joer4x4 4 years ago from Philadelphia, PA Author

To the best of my knowledge they do have tours but I am sure they are limited as to what to can see.


Nalliah Thayabharan 4 years ago

US President John F. Kennedy planned to exterminate the Illuminati Ashkenazi Khazar Zionists owned Federal Reserve System. In 1963 he signed Executive Orders EO-11 and EO-110, returning to the government the responsibility to print money, taking that privilege away from the Illuminati Ashkenazi Khazar Zionists owned Federal Reserve System.

Shortly thereafter, President John F. Kennedy was assassinated. The professional, triangulated fire that executed the President of the United States is not the most shocking issue. The high- level coordination that organized the widespread coverup is manifest evidence of the incredible power of a "hidden government" behind the scenes.

Another myth that all Americans live with is the charade known as the "Federal Reserve." It comes as a shock to many to discover that it is not an agency of the United States Government.

The name "Federal Reserve Bank" was designed to deceive, and it still does. It is not federal, nor is it owned by the government. It is privately owned by the Illuminati Ashkenazi Khazar Zionists. Its employees are not in civil service. Its physical property is held under private deeds, and is subject to local taxation.

It is an engine that has created private wealth that is unimaginable, even to the most financially sophisticated. It has enabled an imperial elite to manipulate US economy for its own agenda and enlisted the US government itself as its enforcer. It controls the times, dictates business, affects Americans' homes and practically everything in which Americans are interested.

It takes powerful force to maintain an empire, and this one is no different. The concerns of the leadership of the "Federal Reserve" and its secretive international benefactors appear to go well beyond currency and interest rates.


joer4x4 profile image

joer4x4 4 years ago from Philadelphia, PA Author

Nalliah Thayabharan

Thanks for your comments. In addition to the FED, JFK would have killed the IRS.

The FED's work it traceable right up to the BIS in Switzerland.


Michele Travis profile image

Michele Travis 4 years ago from U.S.A. Ohio

JFK's assassination is why none of the presidents will ever even try to touch the Federal Reserve Banking system. It is sort of like the mob. Ron Paul is against is, that is the reason, well only one of the reasons, he will never become president. Even if he did, and tried to even touch the Federal Reserve, then he would become the next president to be assassinated. Presidents who mess with money die. Even Lincoln was assassinated. It was not the Federal Reserve, but it was international banking. Don't touch the bankers. The are seriously evil.

Well at least that is my point of view.


joer4x4 profile image

joer4x4 4 years ago from Philadelphia, PA Author

Michele

The scam starts at the IBS and runs all the way down to your local bank.

And they put Madoff in jail through selective justice. What the Hay!

Thanks for stopping by.


Caleb DRC profile image

Caleb DRC 2 years ago

Joer, You have valuable information to share with your hubs. To get ALL your hubs listed on your profile page, this is what you do:

1. Go to your profile, and click "edit profile." 2. Scroll all the way down to "Show only featured hubs on my profile," and click "NO". 3. Go down to "Save changes", and click that. After you do that all your hubs will be on your profile.

I will follow this hub's comments, so if you have any trouble then let me know and we will get them solved.


joer4x4 profile image

joer4x4 2 years ago from Philadelphia, PA Author

Thanks for the info...At first opportunity I follow up.

    Sign in or sign up and post using a HubPages Network account.

    0 of 8192 characters used
    Post Comment

    No HTML is allowed in comments, but URLs will be hyperlinked. Comments are not for promoting your articles or other sites.


    Click to Rate This Article
    working