Federal Reserve Bank: How it Works

The Federal Reserve Bank(Fed), a private institution, is the central bank of the United States. Whomever it is that actually owns the FED is, in my humble opinion, one of the greatest American mysteries of the 20th century. Today the FED holds a money monopoly in the form of Federal Reserve Notes. By design the FED was created to suck the life out of American businesses and its populace; and a bane to the free market. Without a doubt, the people ultimately controlling the FED are indeed globalists, pushing the new world order agenda.

Without going much into detail as the purpose here is to simply explain how the FED actually works, I’d just like to share a few quotes from the Founding Fathers with respect to an American central 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 corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their Fathers conquered…I believe that banking institutions are more dangerous to our liberties than standing armies… The issuing power should be taken from the banks and restored to the people, to whom it properly belongs. -Jefferson 1802

To preserve our independence, we must not let our rulers load us with perpetual debt. We must make our choice between economy and liberty or profusion and servitude. -Jefferson 1816


For we are opposed around the world by a monolithic and ruthless conspiracy that relies primarily on covert means for expanding its sphere of influence–on infiltration instead of invasion, on subversion instead of elections, on intimidation instead of free choice, on guerrillas by night instead of armies by day. It is a system which has conscripted vast human and material resources into the building of a tightly knit, highly efficient machine that combines military, diplomatic, intelligence, economic, scientific and political operations.

Its preparations are concealed, not published. Its mistakes are buried, not headlined. Its dissenters are silenced, not praised. No expenditure is questioned, no rumor is printed, no secret is revealed. It conducts the Cold War, in short, with a war-time discipline no democracy would ever hope or wish to match. – John F. Kennedy 1961

The last president to stand up to the FED is the Autor of the last mentioned quote, JFK. He effectively shut down the FED, the bank holding a monopoly on US currency, through the issue of executive order 11110; and look what the globalists did to him.

Without further diatribe on my part, here is the video, (less than 10 minutes), that will fully explain how the FED operates effectively:

  • money creation in a fractional reserve banking system
  • creates money from debt/liability
  • money creation through deposits; the loan cycle
  • inflation (essentially a hidden tax on the people)
  • inflation is inherited; the problem of inflation can not be solved (by design)
  • money is debt and debt is money




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  1. Pingback: American Revolution: YOU ARE NOT ALONE | Simply Luculent

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