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Federal Reserve BoardNote: This is based on this article I posted on April 21, 2012, with the exception that it was about the 99-year charter misinformation, and I have substituted 100-year, which is the alternative misinformation that some people were spreading in 2013 even after the 99-year charter claim had been shown to be false.

There was actually a commenter who alleged a coverup on the part of the Federal Reserve, saying they were lying about there not being a 99-year charter. This is unfortunately not uncommon in what passes for the alternative media these days. It’s not because the Federal Reserve’s website says there was originally a 20-year charter that I say there was a 20-year charter. It’s because there are a variety of historical sources that say so, some of which are non-governmental, and not supporters of the Fed.

The claim that the Federal Reserve was given a 100-year charter set to expire in 2013 isn’t the only myth surrounding its creation.

There is also the myth that the Federal Reserve Act was passed during the Christmas break when most members of Congress were away. That isn’t true, and there is the official record showing the final vote in the Senate was 54-32 on December 18, 1913.

According to Section 4, part 2 of the Federal Reserve Act, 1913, it says of each of the 12 privately owned Federal Reserve Banks:

“To have succession for a period of twenty years from its organization unless it is sooner dissolved by an Act of Congress, or unless its franchise becomes forfeited by some violation of law.“

Since the Federal Reserve Board’s site shows that all 12 original Federal Reserve Banks are still in operation, their 20-year charter must have been extended.

A 20-year charter was also granted to the First and Second Banks of the United States, and both had their charter terminated. Yes, there was a time when privately owned central banks had time-limited charters, and for good reason, due to the havoc they caused.

12 U.S.C. § 341 : US Code – Section 341: General enumeration of powers shows:

“Second. To have succession after February 25, 1927, until dissolved by Act of Congress or until forfeiture of franchise for violation of law.“

Again, since the Federal Reserve Board’s site shows that shows that all 12 original Federal Reserve Banks are still in operation, this provision was either changed with some other time limit, or was never changed.

In fact, it was never changed, and, therefore, their charter doesn’t expire in 2013, and there was never a 100-year charter for the Federal Reserve.

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Frank SuessThe regular Daily Bell contributor Frank Suess included one of my articles at FauxCapitalist.com in his weekly Mountain Vision newsletter, on October 4, 2012.

Gary North: “The FED operates for the benefit of the largest banks”
Unlike fellow Mises devotee, Thomas DiLorenzo, who keeps calling the Fed a “national bank” and “government bank,” to obscure the fact that it´s 100% privately owned and operates at a profit for its shareholders, Gary North admitted on March 9, 2011, that the Fed “operates for the benefit of the largest banks.”

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This is from the Daily Bell‘s bio on Suess:

Who is he: Frank R. Suess is CEO & Chairman of BFI Capital Group Inc. and he heads up the BFI group of companies in Zurich, Switzerland. They provide wealth management and consulting companies including the Global Gold Program offering secure gold storage in Switzerland. Frank also personally advises a select group of BFI’s high net-worth clients around the world. Suess’s vast knowledge of Switzerland and Liechtenstein is appreciated in his capacity as a member of the Advisory Board for The Foundation for the Advancement of Free-Market Thinking (FAFMT).

An advocate of free-market principles, Frank frequently speaks and writes on global economic, geo-political and financial matters. He is the editor of the Mountain Vision Update, BFI’s complimentary weekly newsletter. Furthermore, he is a regular contributor to The Daily Bell.

This is ironic, given what I have written about the Daily Bell.

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In 1935, Cret designed the Seal of the Board o...

The claim that the Federal Reserve was given a 99-year charter set to expire in 2012 isn’t the only myth surrounding its creation.

There is also the myth that the Federal Reserve Act was passed during the Christmas break when most members of Congress were away. That isn’t true, and there is the official record showing the final vote in the Senate was 54-32 on December 18, 1913.

According to Section 4, part 2 of the Federal Reserve Act, 1913, it says of each of the 12 privately owned Federal Reserve Banks:

To have succession for a period of twenty years from its organization unless it is sooner dissolved by an Act of Congress, or unless its franchise becomes forfeited by some violation of law.

Since the Federal Reserve Board’s site shows that all 12 original Federal Reserve Banks are still in operation, their 20-year charter must have been extended.

A 20-year charter was also granted to the First and Second Banks of the United States, and both had their charter terminated. Yes, there was a time when privately owned central banks had time-limited charters, and for good reason, due to the havoc they caused.

12 U.S.C. § 341 : US Code – Section 341: General enumeration of powers shows:

Second. To have succession after February 25, 1927, until dissolved by Act of Congress or until forfeiture of franchise for violation of law.

Again, since the Federal Reserve Board’s site shows that shows that all 12 original Federal Reserve Banks are still in operation, this provision was either changed with some other time limit, or was never changed.

In fact, it was never changed, and, therefore, their charter doesn’t expire in 2012, and there was never a 99-year charter for the Federal Reserve.

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Crystaline Gold

In response to Ingo Bischoff, a regular commenter on their site, in the comments section of their article, Central Banks Won’t Produce Natural Interest, the Daily Bell responded:

Ingo, you are a well-learned man. But it is impossible to have a substantive conversation with you within certain parameters because of your gold obsession. Even Rothbard, who was fairly fanatical about gold, admitted that “money” is what societies make of it. Money is gold, sure … but it’s also been salt, beads and remains silver despite your pooh-poohing of the “people’s metal.” When you start with the insistence that the “only” money is gold, then whatever flows from this flawed proposition becomes increasingly incomprehensible. Which is too bad. You have a lot to offer …

But they conveniently failed to respond to his criticism of their claim that “Greenbackerism” is making a comeback, when he said:

Greenbackerism making a startling comeback… ??? That certainly is news to me.

Greenbacks were the most successful paper currency ever put into circulation. They were continously issued for over a hundred years from 1864 until 1971. That they have been issued since is startling news to me.

Things are getting interesting at The Daily Bell now, with a gold-loving, apparently learned student of the monetary system conceding that the Greenbacks were successful, despite the oft-repeated protestations of former Daily Bell associate G. Edward Griffin and others. I previously wrote how during their interview with Ingo Bischoff, he undermined their basis for a free market in money, saying such a thing doesn’t even exist.

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Here is the comment, reproduced in full, before it is automatically removed in a couple weeks, in response to Infowars.com republishing The Daily Bell article, Central Banks Won’t Produce Natural Interest. Notice how they predictably fail to distinguish between public non-BIS-member central banks (Libya’s until the NATO bombing, Syria’s, Iran’s — notice a pattern?) and private central banks.

“Benrod says:
March 30, 2012 at 6:23 am

“The gibberish contained in the above excerpt is only magnified throughout the article.”
Right.
The article itself is, in fact, gibberish.
It is written by a person whose job is to write articles for a banking website about bankers and the jargon and gibberish that the bankers use while using the same gibberish to blast the banks, bankers, and banking practices that caused the website (and the author’s job) to exist in the first place, all the while still promoting the perpetuation of the machine that created itself.
“Greenbackerism”
Does that mean there is “greenbackerists”?
Extreme greenbackerists?
And the history lesson is completely un-necessary.
“…Knut Wicksell’s ‘natural rate of interest’”. But who was Knut Wicksell and what is the “natural rate of interest” – and does it matter?”
No.
Creating a catchy phrase automatically means that the creator is a financial genius?
Critically analyzing the jargon while using the jargon shows genius, too?
Maybe the interest rates (“natural” or not) would be “better” (perspectively) if so much time and money wasn’t WASTED to have articles like this (and websites like TheDailyBell)…
What a RANT!
My fingers are out of breath…”

I first publicly questioned The Daily Bell on February 10, 2011, with Strange Bedfellows: The Federal Reserve and The Daily Bell.

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Image of Lew Rockwell

Previously, I wrote the article, The Economic Collapse Blog throws its 14 reasons for nationalizing the Federal Reserve out the window in just four months, where I noted how in November 2011, they called for nationalizing the Fed, and four months later, called for Congress to shut it down and throw away the key.

What could explain such a radical shift in such a short period of time?

I think the clue lies in the article’s title and editorial commentary in saying that Ben Bernanke said why the gold standard is bad.

As I have pointed out, LewRockwell.com had published 72 articles by the Economic Collapse Blog by November 12, 2011, but only the depressing ones about the current dysfunctional U.S. government and not the positive articles that Michael Snyder publishes as well, such as actually fixing the Federal Reserve.

His articles are also picked up and referenced by The Daily Bell, whose founder, as I have pointed out, admitted on his own bio to advising and consulting to large international banks, despite portraying an anti-establishment front.

LewRockwell.com has also published many articles by the Daily Bell, especially those blasting “central banks,” while failing to draw the distinction between public and private central banks.

You will see references to the Economic Collapse Blog articles on The Daily Bell, that, by their own words, is a fierce opponent of central banking, despite large international banks being the primary owners of the world’s largest central bank, the Federal Reserve, and being strange bedfellows with that very privately owned central bank.

Subsequent articles by Michael Snyder will show whether he has truly abandoned his call for nationalizing the Fed and whether his positive pro-government solution-oriented articles were too much for Lew Rockwell and The Daily Bell to take, and if they pressured him to drop his talk of improving government in the interest of securing more article publications and references.

For more on the problems with the gold standard, see my article, The gold double standard, and my article on prominent LewRockwell.com writer Gary North, Gary North’s “free market gold standard” is also a fool’s gold standard.

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Harry BrowneThe late Harry Browne, libertarian champion and 1996 and 2000 Libertarian Party presidential candidate, started off his November 20, 2004 radio show with talk of the Federal Reserve.

At 4:32, he said:

The Federal Reserve System is not privately owned.

I wouldn’t have had as much of an issue if he said it’s not private — in drawing attention to its public aspects — but to say it is not privately owned is a complete falsehood, as it is 100% privately owned by the member banks of the 12 privately owned regional Federal Reserve banks.

At 16:08, he claimed the Fed returns “trillions and trillions” of dollars back to the U.S. Treasury each year. The New York Times reported on January 10, 2012 that the Fed returned $76.9 billion to the Treasury for 2011, and that’s with far more debt outstanding than when Browne made his comments.

I came across this excellent letter in 2010 by Harry Browne to his daughter, entitled A Christmas Gift for My Daughter, originally published on December 25, 1966, explaining why nobody owes her anything. However, when it comes to his statements on the Federal Reserve, they were an epic fail.

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