- The following is a conversation with Mr. Ron Supinski of the Public
Information Department of the San Francisco Federal Reserve Bank. This is an account of
- CALLER - Mr. Supinski, does my country own the Federal Reserve System?
- MR. SUPINSKI - We are an agency of the government.
- CALLER - That's not my question. Is it owned by my country?
- MR. SUPINSKI - It is an agency of the government created by congress.
- CALLER - Is the Federal Reserve a Corporation?
- MR. SUPINSKI - Yes
- CALLER - Does my government own any of the stock in the Federal Reserve?
- MR. SUPINSKI - No, it is owned by the member banks.
- CALLER - Are the member banks private corporations?
- MR. SUPINSKI - Yes
- CALLER - Are Federal Reserve Notes backed by anything?
- MR. SUPINSKI-Yes, by the assets of the Federal Reserve but, primarily by
the power of congress to lay tax on the people.
- CALLER - Did you say, by the power to collect taxes is what backs
Federal Reserve Notes?
- MR. SUPINSKI - Yes
- CALLER - What are the total assets of the Federal Reserve?
- MR. SUPINSKI - The San Francisco Bank has $36 Billion in assets.
- CALLER - What are these assets composed of?
- MR. SUPINSKI - Gold, the Federal Reserve Bank itself and government
- CALLER - What value does the Federal Reserve Bank carry gold per oz. on
- MR. SUPINSKI - I don't have that information but the San Francisco Bank
has $1.6 billion in gold.
- CALLER - Are you saying the Federal Reserve Bank of San Francisco has
$1.6 billion in gold, the bank itself and the balance of the assets is government
- MR. SUPINSKI - Yes.
- CALLER - Where does the Federal Reserve get Federal Reserve Notes from?
- MR. SUPINSKI - They are authorized by the Treasury.
- CALLER - How much does the Federal Reserve pay for a $10 Federal Reserve
- MR. SUPINSKI - Fifty to seventy cents.
- CALLER - How much do they pay for a $100.00 Federal Reserve Note?
- MR. SUPINSKI - The same fifty to seventy cents.
- CALLER - To pay only fifty cents for a $100.00 is a tremendous gain,
- MR. SUPINSKI - Yes
- CALLER - According to the US Treasury, the Federal Reserve pays $20.60
per 1,000 denomination or a little over two cents for a $100.00 bill, is that correct?
- MR. SUPINSKI - That is probably close.
- CALLER - Doesn't the Federal Reserve use the Federal Reserve Notes that
cost about two cents each to purchase US Bonds from the government?
- MR. SUPINSKI - Yes, but there is more to it than that.
- CALLER - Basically, that is what happens?
- MR. SUPINSKI - Yes, basically you are correct.
- CALLER - How many Federal Reserve Notes are in circulation?
- MR. SUPINSKI - $263 billion and we can only account for a small
- CALLER - Where did they go?
- MR. SUPINSKI - Peoples mattress, buried in their back yards and illegal
- CALLER - Since the debt is payable in Federal Reserve Notes, how can the
$4 trillion national debt be paid-off with the total Federal Reserve Notes in circulation?
- MR. SUPINSKI - I don't know.
- CALLER - If the Federal Government would collect every Federal Reserve
Note in circulation would it be mathematically possible to pay the $4 trillion national
- MR. SUPINSKI - No
- CALLER - Am I correct when I say, $1 deposited in a member bank $8 can
be lent out through Fractional Reserve Policy?
- MR. SUPINSKI - About $7.
- CALLER - Correct me if I am wrong but, $7 of additional Federal Reserve
Notes were never put in circulation. But, for lack of better words were "created out
of thin air " in the form of credits and the two cents per denomination were not paid
either. In other words, the Federal Reserve Notes were not physically printed but, in
reality were created by a journal entry and lent at interest. Is that correct?
- MR. SUPINSKI - Yes
- CALLER - Is that the reason there are only $263 billion Federal Reserve
Notes in circulation?
- MR. SUPINSKI - That is part of the reason.
- CALLER - Am I mistaking that when the Federal Reserve Act was passed (on
Christmas Eve) in 1913, it transferred the power to coin and issue our nation's money and
to regulate the value thereof from Congress to a Private corporation. And my country now
borrows what should be our own money from the Federal Reserve (a private corporation) plus
interest. Is that correct and the debt can never be paid off under the current money
system of country?
- MR. SUPINSKI - Basically, yes.
- CALLER - I smell a rat, do you?
- MR. SUPINSKI - I am sorry, I can't answer that, I work here.
- CALLER - Has the Federal Reserve ever been independently audited?
- MR. SUPINSKI - We are audited.
- CALLER - Why is there a current House Resolution 1486 calling for a
complete audit of the Federal Reserve by the GAO and why is the Federal Reserve resisting?
- MR. SUPINSKI - I don't know.
- CALLER - Does the Federal Reserve regulate the value of Federal Reserve
Notes and interest rates?
- MR. SUPINSKI - Yes
- CALLER - Explain how the Federal Reserve System can be Constitutional
if, only the Congress of the US, which comprises of the Senate and the House of
representatives has the power to coin and issue our money supply and regulate the value
thereof? [Article 1 Section 1 and Section 8] Nowhere, in the Constitution does it give
Congress the power or authority to transfer any powers granted under the Constitution to a
private corporation or, does it?
- MR. SUPINSKI - I am not an expert on constitutional law. I can refer you
to our legal department.
- CALLER - I can tell you I have read the Constitution. It does NOT
provide that any power granted can be transferred to a private corporation. Doesn't it
specifically state, all other powers not granted are reserved to the States and to the
citizens? Does that mean to a private corporation?
- MR. SUPINSKI - I don't think so, but we were created by Congress.
- CALLER - Would you agree it is our country and it should be our money as
provided by our Constitution?
- MR. SUPINSKI - I understand what you are saying.
- CALLER - Why should we borrow our own money from a private consortium of
bankers? Isn't this why we had a revolution, created a separate sovereign nation and a
Bill of Rights?
- MR. SUPINSKI - (Declined to answer).
- CALLER - Has the Federal Reserve ever been declared constitutional by
the Supreme Court?
- MR. SUPINSKI - I believe there has been court cases on the matter.
- CALLER - Have there been Supreme Court Cases?
- MR. SUPINSKI - I think so, but I am not sure.
- CALLER - Didn't the Supreme Court declare unanimously in A.L.A.
Schechter Poultry Corp. vs. US and Carter vs. Carter Coal Co. the corporative-state
arrangement an unconstitutional delegation of legislative power? ["The power
conferred is the power to regulate. This is legislative delegation in its most obnoxious
form; for it is not even delegation to an official or an official body, presumptively
disinterested, but to private persons." Carter vs. Carter Coal Co...]
- MR. SUPINSKI - I don't know, I can refer you to our legal department.
- CALLER - Isn't the current money system a house of cards that must fall
because, the debt can mathematically never be paid-off?
- MR. SUPINSKI - It appears that way. I can tell you have been looking
into this matter and are very knowledgeable. However, we do have a solution.
- CALLER - What is the solution?
- MR. SUPINSKI - The Debit Card.
- CALLER - Do you mean under the EFT Act (Electronic Funds Transfer)?
Isn't that very frightening, when one considers the capabilities of computers? It would
provide the government and all it's agencies, including the Federal Reserve such
information as: You went to the gas station @ 2:30 and bought $10.00 of unleaded gas @
$1.41 per gallon and then you went to the grocery store @ 2:58 and bought bread, lunch
meat and milk for $12.32 and then went to the drug store @ 3:30 and bought cold medicine
for $5.62. In other words, they would know where we go, when we went, how much we
paid, how much the merchant paid and how much profit he made. Under the EFT they will
literally know everything about us. Isn't that kind of scary?
- MR. SUPINSKI - Yes, it makes you wonder.
- CALLER - I smell a GIANT RAT that has overthrown my constitution. Aren't
we paying tribute in the form of income taxes to a consortium of private bankers?
- MR. SUPINSKI - I can't call it tribute, it is interest.
- CALLER - Haven't all elected officials taken an oath of office to
preserve and defend the Constitution from enemies both foreign and domestic? Isn't the
Federal Reserve a domestic enemy?
- MR. SUPINSKI - I can't say that.
- CALLER - Our elected officials and members of the Federal Reserve are
guilty of aiding and abetting the overthrowing of my Constitution and that is
treason. Isn't the punishment of treason death?
- MR. SUPINSKI - I believe so.
- CALLER - Thank you for your time and information and if I may say so, I
think you should take the necessary steps to protect you and your family and withdraw your
money from the banks before the collapse, I am.
- MR. SUPINSKI - It doesn't look good.
- CALLER - May God have mercy on the souls who are behind this
unconstitutional and criminal act called the Federal Reserve. When the ALMIGHTY MASS
awakens to this giant hoax, they will not take it with a grain of salt. It has been a
pleasure talking to you and I thank you for your time. I hope you will take my advice
before it does collapse.
- MR. SUPINSKI - Unfortunately, it does not look good.
- CALLER - Have a good day and thanks for your time.
- MR. SUPINSKI - Thanks for calling.
- If the reader has any doubts to the validity of this conversation, call
your nearest Federal Reserve Bank, YOU KNOW THE QUESTIONS TO ASK! You won't find them
listed under the Federal Government. They are in the white pages, along with Federal
Express, Federal Deposit Insurance Corp. (FDIC), and any other business. Find out for
yourself if all this is true.
- And then, go to your local law library and look up the case of Lewis vs.
US, case #80-5905, 9th Circuit, June 24, 1982. It reads in part: "Examining the
organization and function of the Federal Reserve Banks and applying the relevant factors,
we conclude that the federal reserve are NOT federal instrumentality's . . but are
independent and privately owned and controlled corporations - federal reserve banks are
listed neither as "wholly-owned' government corporations [under 31 USC Section 846]
nor as 'mixed ownership' corporations [under 31 USC Section 856] . . . 28 USC Sections
1346(b), 2671. '
- Federal agency' is defined as: the executive departments, the military
departments, independent establishments of the United States, and corporations acting
primarily as instrumentality's of the United States, but does not include any contractors
with the United States . . . There are no sharp criteria for determining whether an entity
is a federal agency within the meaning of the Act, but the critical factor is the
existence of the federal government control over the 'detailed physical performance' and
'day to day operations' of that entity.
- Other factors courts have considered include whether the entity is an
independent corporation . . . whether the government is involved in the entity's finances,
. . . and whether the mission of the entity furthers the policy of the United States . . .
Examining the organization and function of the Federal Reserve Banks, and applying the
relevant factors, we conclude that the Reserve Banks are not federal instrumentalities ...
- It is evident from the legislative history of the Federal Reserve Act
that Congress did not intend to give the federal government direction over the daily
operation of the Reserve Banks . . . The fact that the Federal Reserve Board regulates the
Reserve Banks does not make them federal agencies under the Act . . . Unlike typical
federal agencies, each bank is empowered to hire and fire employees at will. Bank
employees do not participate in the Civil Service Retirement System. They are covered by
worker's compensation insurance, purchased by the Bank, rather than the Federal Employees
- Employees traveling on Bank business are not subject to federal travel
regulations and do not receive government employee discounts on lodging and services . . .
Finally, the Banks are empowered to sue and be sued in their own name. 12 USC Section 341.
They carry their own liability insurance and typically process and handle their own claims
. . ." According to the Federal Reserve Bank of Philadelphia, "When the Federal
Reserve was created, its stock was sold to the member banks." ("The Hats The
Federal Reserve Wears," published by the Federal Reserve Bank of Philadelphia).
- The original Stockholders of the Federal Reserve Banks in 1913 were the
Rockefeller's, JP Morgan, Rothschild's, Lazard Freres, Schoellkopf, Kuhn-Loeb, Warburgs,
Lehman Brothers and Goldman Sachs. The MONEYCHANGERS wanted to be insured they had a
monopoly over our money supply, so Congress passed into law Title 12, Section 284 of the
United States Code. Section 284 specifically states, "NO STOCK ALLOWED TO THE
- Monopoly - "A privilege or peculiar advantage vested in one or more
persons or companies, consisting in the exclusive right [or power] to carry on a
particular business or trade, manufacture a particular article, or control the sale of the
whole supply of a particular commodity, A form of market structure in which only a few
firms dominate the total sales of a product or service.
- 'Monopoly,' as prohibited by Section 2 of the Sherman Antitrust Act, has
two elements: possession of a monopoly power in relevant market and willful acquisition or
maintenance of that power, as distinguished from growth or development as a consequence of
a superior power, business acumen, or historical product. A monopoly condemned by the
Sherman Act is the power to fix prices, or exclude competition, coupled with policies
designed to use and preserve that power." (Black's Law Dictionary, 6th Edition) The
Federal Reserve Act goes one step farther, "No Senator or Representative in Congress
shall be a member of the Federal Reserve Board or an officer or director of a Federal
Reserve Bank." They didn't want We The People to have any say in the operation of
their monopoly through our elected officials.