For over 15 years I have periodically written on the FRS (Federal Reserve System). For all that time I have informed that the FRS is a private corporation that is in no way connected to our government. I have stated that the FRS is not Federal, but private, that it has no reserves, because it hold no hard assets, and that it is not a System but in fact a private corporation.

These writing have caused me to be ignored, vilified and called a cook by mainstream media who are ever the purveyors of norms of current thought. Worse yet my books do not get reviewed because they say, "Krieg is a conspiracy theorist". It is an interesting side fact that conspiracy is not a theory, like Darwinism, it is factual and proven to be so unlike the "theory of evolution" for which there is little if any concrete evidence.

To issue:

Lewis v. United States. 680 F.2d 1239 (1982)
John L. Lewis Plaintiff/Appellant
v.
United States of America, Defendant/Appellee

Docket No. 80-5905
United States Court of Appeals, Ninth Circuit

This case deals with an individual who was injured in an automobile accident by a vehicle owned and operated by a Federal Reserve Bank employee. (LA CA) He brought suite under the Federal Tort Claims Act against the FRS as a federal agency of the U. S. Government. The case was dismissed.

Judge David W. Williams of The United States District Court for the Central District of California ruled that; in dismissing this case "the Federal Reserve Bank is not an agency [of the U.S. government] within the meanings of this Act [Federal Tort Claims Act] and the court lacks jurisdiction in this matter". The case was appealed to the Court of Appeals Circuit judge Poole held that federal reserve banks are not federal instrumentalities for purposes of the Act, but are independent, privately owned and locally controlled corporations.

Affirmations of the Court:

1. There are not sharp criteria for determining whether an entity is a federal agency within meaning of the Federal Tort Claims Act, but critical factor is existence of federal government control over "detailed physical performance" and "day to day operations" on an entity...
2. Federal reserve banks are not federal instrumentalities for purpose of a Federal Tort Claims Act, but are independent, privately owned and locally controlled corporations in light of fact that direct supervision and control of each bank is exercised by board of directors, federal reserve banks, though heavily regulated,^* are locally controlled by their member banks, banks are listed neither as "wholly owned" government corporations nor as "mixed ownership" corporations; federal reserve banks receive no appropriated funds from congress and the banks are empowered to sue and be sued in their own names...
3. Under the Federal Tort Claims Act, federal liability is narrowly based on traditional agency principle and does not necessarily lie when a tortfeasor simply works for an entity, like the Reserve Bank, which performs important activities for the government...
4. The Reserve Banks are deemed to be federal instrumentalities for purposes of immunity [from payment of] state taxation...

^* Since the establishment of the FRS in 1913 the FRS Corporation has never once been audited by any outside enterprise. The only other agency that has that distinction is the IRS. I find that more than just odd in view of the fact that these two agencies acting in concert deal with all the money that the government lays claim to.

The prognostications of the judges involved continue on for several pages sitting numerous issues and statutes. Among these is 28 U.S.C. Sect. 2671 section 267 which points out that in order for an agency to be under the control of the federal government it must; [the government] "have control over the day to day operations" and have control over "detailed physical performance" which of course the judges point out is not the case with the FRS. The operation of these banks is regulated under 12 U.S. C. sect. 3012 and sections 341 and 361. These provisions inform us that; each Federal Reserve Bank is a separate corporation owned by a commercial bank in its region, etc.

The fact is somewhat tortured because the twelve regional FRS banks do not control their destinies. While there is much talk about board of directors, and the Federal Reserve Board, the detail is that the major NY banks own 52%+ of the stock so they in fact control the entire system. It is also wise to remember that while the sitting president appoints members to the FRS board of governors, he is simply given a short list by the bankers of three names from which he is allowed to choose. It must also be understood by all that the FRS and the IRS are the only two agencies supposedly acting in the interests of Americans that have never been audited by any third party since their foundation in 1913, these are the very same people who audit everyone else to death.

The Federal Reserve Board regulates the Reserve Banks but this no more makes the FRS a federal agency than do the drug companies who are regulated by the FDA, or the gun industry that is regulated by the BATF. In 1976 the Supreme Court ruled under U.S. vs. Orleans U.S. 807,96 S. Ct. 1971, 48L.E. d.2d 390 (1976) that a "community action agency" was not a federal agency. The FRS has been deemed by the court to be a "community action agency". The FRS is not listed as either a "wholly owned" or of "mixed ownership" in statue, and is therefore a private corporation as I have been saying for over 15 years.

The FRS is not unlike the Bank of England after which along with the former bank of Germany it was patterned. All banks in the 21st century are private banks, there are no government banks, and all of them due to the "Forex" markets are interconnected, not only in the mater of money but also in ownership and management. Ever since the 1700's banking has been international this has developed in the 21st century into an international monetary monopoly controlled by a very small select group of mega-bankers.

To learn more on this issue Dr. Krieg's soon to be issued book "Money" will become available in February 2006.

Page URL: http://www.kriegbooks.com/vindicated.html
Host Web site: http://www.kriegbooks.com/