vincent.jpgDecember 03, 2008
By Vincent Gioia

In Part One of this series I said I would tell who owns the Federal Reserve Bank and that you would be surprised. As I said, the Federal Reserve is a private company of bankers with twelve branch banks that confiscate our money and they have been doing this for almost a hundred years. They are not part of the United States government but they collect hundreds of billions of dollars from the American taxpayers every year, trillions in total, and they have never been audited and they do not pay taxes on profits.

Representative Louis T. McFadden, Chairman of the Committee on Banking and Currency for 12 years is quoted in the Congressional Record as saying:

“The Federal Reserve Board, …, has cheated the Government of the United States and the people of the United States out of enough money to pay the national debt…Our people’s money to the extent of $1,200,000,000 has within the last few months been shipped abroad to redeem Federal Reserve Notes and to pay other gambling debts of the traitorous Federal Reserve Board and the Federal Reserve Banks … “

So who are the masters of the Federal Reserve Bank who receive these huge profits; they include an impressive list of Foreign owned banks and investment houses, and domestic banks.

If you don’t believe The Federal Reserve (FED) is a PRIVATELY OWNED, organization; check the ENCYCLOPAEDIA BRITANNICA.

The owners of the 12 Central Federal Reserve Banks are:

– Rothschild Bank of London
– Rothschild Bank of Berlin
– Lazard Brothers of Paris
– Israel Moses Seif Banks of Italy
– Warburg Bank of Amsterdam
– Warburg Bank of Hamburg
– Lehman Brothers of New York
– Kuhn Loeb Bank of New York
– Goldman, Sachs of New York
– Chase Manhattan Bank of New York

All-in-all there is about 300 VERY POWERFUL foreign individuals that own the FED through ownership of the listed banks and investment houses.

Theoretically the FED is required to give back most of its PROFITS to the Treasury Dept., but there is NO ORGANIZATION that has the power to AUDIT the FED (not even the Congress or the IRS). Therefore there is a huge opportunity for “creative accounting” to hide and deny the profit that the U.S. Tax Payers are entitled to, which amounts to Hundreds of Billions of Dollars annually.

A few Republicans congressmen annually introduce legislation to AUDIT the FED, and every year, the legislation is defeated. The owners of the FED are an extremely powerful, invisible lobbying power.

Of course it helps the FED owners that they exert major control of media outlets so that the public is kept uninformed about the FED owners’ shenanigans. The owners of the FED own the controlling interests in ALL major media in the United States; Rockefeller, through Chase Manhattan bank, controls CBS and ABC and 28 other broadcasting firms. Each of the other owners of the FED also has controlling interest in the US media. This explains why the media have been silent about the FED scam. The FED fraud is the biggest and longest cover-up in United States history.

As pointed out in Part One, According to Article 1, Section 8 of the Constitution, the US Congress has the power to print money (The Congress shall have the power…to coin money, regulate the value thereof, and of foreign coin, ..). According to the Supreme Court, the Congress cannot transfer its power to other organizations like the FED, but they have done it anyway.

Here is how the owners of the FED profit at the expense of the American people.

The US Government runs deficits annually in the billions of dollars, and lately in the trillions of dollars. Congress covers this by issuing government bonds which are bought by the FED. Since the FED has the power to print money, it can buy any amount of the US. Government bonds at almost NO COST, except for the small fee paid to the Treasury to print money (about 3 cents/$100).

This amounts to a profit to the FED owners of about $99.97 for every 3c they invested to print the money. Basically, they exchange something that costs almost nothing to them for the US Government Bonds.

Since the FED can NOT be AUDITED by the IRS (or even by Congress), most of this profit can go anywhere the FED owners want it to go; and it is tax free.

After buying the bonds, the owner of the FED can either keep the bonds, and collect the interest the US Government now owes them, or sell the bonds to the U.S. Taxpayers or foreigners. In either case, the FED owners have received $99.97 profit for every 3 cents it invested to print the money. Since the FED is a privately owned corporation, the profit of the FED goes to the FED owners.

The U.S. Government now owes the FED owners the interest on those bonds. Remember the FED owners do not earn the bonds, they simply arrange for printing the money to buy the bonds. In other words, they created money out of thin air, and exchange it for the interest bearing bonds.

In order to pay for the bonds’ interest, the U.S. Government taxes the US population.

When a U.S. citizen holding U.S. Government bonds receives his/her return of investment on the bonds, essentially the money he/she receives is the tax money he/she is paying to the Government.

When the OWNERS of the FED receive the interest on the BONDS they’re holding, they are receiving that money essentially for free and without the need to pay taxes on the profit.

In reality every year the FED profits by hundreds of billions of dollars by buying US Government Bonds. Yet it only returns about $20 billion to the US Treasury. The rest of the profit has been spent as “Operational Expenses”. The FED expects us to believe that the FED operational expenses are hundreds of billions of dollars annually.

In actuality those profits are given as “DIVIDENDS TO SHAREHOLDERS.”

Is there any doubt this scam will eventually increase the national debt and lead to bankrupt the government?


The U.S. Congress has the option to buy back the FED at $450 million (per Congressional Records). If the Congress does this, it will own back the billions of U.S. Government Bonds held by the FED. The U.S. Government will actually profit by buying back the FED; and the U.S. government would no longer have to pay interests to the FED owners on those bonds.

This will give the owners of the FED what they deserve after all the years of milking the public. Through their ownerships in the FED, powerful foreign and domestic banks have raked in trillions of dollars in tax free dividends; isn’t it about time we do something about it?

Let’s remember what Henry Ford once said “It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning.”

Vincent Gioia is a retired patent attorney living in Palm Desert, California. His articles may be read at and he may be contacted at