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----- Original Message -----
In his Dow Theory Letter of June 28, 2006, Richard Russell presents below
the most concise explanation of the Federal Reserve scam I have ever
seen, even my cousin should be able to understand it. The fact that the
politicians and banksters operating this scam are not prosecuted for
criminal racketeering (RICO) is prima facie evidence that justice does
not prevail for everyone throughout this great land. Yet, in spite of
this massive theft of resources from American workers somehow the system
still functions, its a miracle! JLK
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THE FED - The papers are full of articles regarding what the Fed might do
or not do with short rates. But how is it that nobody ever questions the
very worth or non-worth of the Federal Reserve itself. The Fed has never
been audited. It's legitimacy, it's worth, is NEVER questioned - the Fed
appears immune to questions. One problem is that nobody understands what
a monstrous fraud the Fed is.

When the US government needs money, it doesn't just issue United States
Federal Notes (dollars), which it certainly could do. In other words,
incredibly, the US government does not issue its own money. Instead, the
government issues bonds, thereby loading itself with ever increasing
interest-bearing debt. Here's how this disgrace works -

The US government issues a billion dollars of interest-bearing US
government bonds. It takes the bonds to the Federal Reserve - the Fed
accepts the bonds and places one billion dollars in a checking account.
The government then writes checks to the total of a billion dollars
against the checking account - a billion dollars that has been created
"out of thin air."

Meanwhile, the debts of the US grow and grow. And the government pays
interest on the bonds. Yet that isn't enough for the US government. It
taxes its citizens, taking away a percentage of their passive and active
earnings. And as if that isn't enough, it robs its citizens via
inflation, so that as their living costs rise, simultaneously their
savings are whittled away.

The Fed has been in existence for 93 years. In those 93 years the Federal
Reserve Notes that the Fed issues have lost 98% of their purchasing
power. To cover up this monumental scam, we hear the Fed blather and
bluster about how worried they are about the current inflation rate. The
current inflation rate is the cover-up; what kills us is the systematic
year-after-year loss of purchasing power of those billions of fiat
Federal Reserve Notes.

So the system allows this semi-private banking system to create money out
of absolutely nothing (all of it a loan to our government) and charge
interest on this debt forever. Thus, the Fed collects interest on the
government's own money. It's a system that is beyond belief, but one that
runs the life blood of the nation - the life blood of a nation is its
money. A communique sent from the Rothschild investment house in England
to its associates in New York noted, "The few who understand the system.
.. . will either be so interested in its profits or so dependent on its
favors that there will be no opposition from that class, while on the
other hand, the great body of people, mentally incapable of comprehending
.. . will bear its burdens without complaint."