My Personal Research on the Federal Reserve

by Thomas D. Schauf

My Personal Research on the Federal Reserve

I am attempting to clear up questions people have about the Federal Reserve Bank (FED). Even as a nationally known CPA who has conducted over 100 seminars to CPA's discussing banking and the economy, I was confused and surprised concerning the FED. I spent much time researching the FED and this is what I learned. In 1982, the government records show that taxpayers paid the shareholders of the FED $115 billion in interest on U.S. government debt that the FED purchased with money they created on a printing press. Banks own much of the government debt from money they printed on a printing press. The FED pays for the paper and ink for the money, and all their profits are tax free. By 1997, it is projected all taxes will pay only interest on the national debt unless the FED is abolished. Unemployment will rise significantly and businessmen will lose their businesses unless we change now. By abolishing the FED and returning to the Constitution we can cut taxes by more than 75% and balance the budget. According to the United States Constitution, Article 1, Section 8, the FED is an illegal institution.

The FED is a private bank owned by the Rockefellers and an estimated 300 other shareholders who have been given the right by Congress to print money from nothing, issue this money and then collect interest. The FED collects 100's of billions in interest annually and distributes the profits to its 300 shareholders. The Congress gave the FED the right to print money at no interest to the FED. The FED also buys U.S. debt and charges U.S. taxpayers interest. By law, profits should flow into the U.S. Treasury, and it is not. Many Congressmen and numerous Presidents say this is fraud.

How did it happen? In 1913, a senator, Nelson Aldrich, maternal grandfather to the Rockefellers, pushed a bill through Congress just before Christmas when most of Congress was on vacation. Private bankers funded and staffed President Wilson's campaign. When elected, Wilson passed the FED. The media mislead the public, and sponsors of the FED made 10 promises, none of which was kept. Now the FED funds both Democratic and Republican candidates into office. The bankers employ most of the Congress on weekends (nickname T&T club) with lucrative salaries. Additionally, the FED started buying up the media in the 1930's and now owns or significantly influences most of it. Be informed so the media can't mislead you.

Presidents Lincoln, Jackson, and Kennedy tried to stop this family of bankers by printing U.S. dollars without charging the taxpayers interest. Today, if the government runs a deficit the FED prints dollars, buys the debt, and the dollars are circulated into the economy. Forty percent (40%) of our personal federal income taxes goes to pay this interest. This is what bankers wanted Lincoln to do to finance the Civil War. Lincoln said no. He printed Greenbacks (from nothing with no interest or debt attached). Upon Lincoln's death, the Greenbacks were traded in for government debt (interest charged). Foreign bankers bought the debt with money they have printed from nothing and receive interest at taxpayer's expense.

The solution: Currently all we do is exchange FED money (interest-attached) for real U.S. money (interest-free) dollar- for-dollar. We should not be required to pay interest on our own currency. According to Benjamin Franklin, this is the same reason we fought the Revolutionary War. Thomas Jefferson said this about a FED-type banking system, "if the American people ever allow private banks to control the issue of their currency, first by inflation then by deflation, the banks and the corporations will grow up around them, will deprive the people of all property until their children wake up homeless on the continent their fathers conquered." Experts believe the FED created the "Great Depression" and inflation, and profited from peoples misfortune.

The U.S. Government can buy back the FED at any time for under $1 billion (per Congressional record). The U.S. Treasury could then collect the profit on our money instead of the 300 shareholders of the FED. This profit is more than all personal federal income taxes. The $4 trillion of U.S. debt could be exchanged dollar-for-dollar with U.S. non-interest bearing currency when the debt becomes due. There would be no inflation because there would be no additional currency in circulation. Personal income tax could be eliminated if we bought back the FED and therefore, the economy would expand. According to the Constitution, Congress is to control the printing of money, keeping the amount of inflation or deflation in check. If Congress isn't doing their job, they should be voted out of office. Unfortunately, voter's can't vote the FED or it's Chairman out of office.

If the U.S. government has a deficit, we could handle it as Lincoln and Kennedy did. Print money and circulate it into the economy, but this time interest-free. The FED will cease to exist as taxpayers become informed and tell other taxpayers. The news media and Congress will have no choice but to meet the demands of grass roots America.

First, the public must be informed. Then we can implement five ways to abolish the FED. Congressmen wish to abolish the FED, but due to the media their hands are tied. It's up to you to spread the word so we can return to the Constitution.

For more detailed reference information, send $3.00 to the above address with a self addressed stamped legal size envelope. Please do not send cash.

Thomas D. Schauf, CPA 1322-1 Kingsbury Drive Hanover Park, IL 60103 708-289-5634