ISSUES IN PERSPECTIVE

By David Grossack Updated: 3/13/2005

WHY I WANT TO SUE ALAN GREENSPAN !

Few institutions have done more damage to the well being of the American people than the Federal Reserve System and its Chairman, Alan Greenspan.

The Federal Reserve, for the uninitiated, is a privately owned network of banks which have been permitted to issue "notes" which are legal tender in the fifty states of our country.

These so called "Federal Reserve Notes" represent no assets behind them. They are merely pieces paper made "legal tender" by an Act of Congress which are used as a medium of exchange because the public is made to believe they are valuable.

When Congress allowed Federal Reserve Notes to be legal tender it did so knowing full well that they did not conform to the Constitutional requirement for lawful money. Article I Section 8 of the Constitution clearly states that no states should accept anything but gold and silver as legal tender. No where in the Constitution are the states authorized to accept or use paper money.

The Federal Reserve's ability to print "dollars" and to place more and more money into circulation of no intrinsic value other than the chemical value of paper and ink, has decreased the purchasing power of the dollar steadily.

A home that cost $12,000. in 1962 cost $$380,000. in 2000. The house didn't change. The money did... it became increasingly worth less on Alan Greenspan's watch.

So much more money got into circulation, that it just steadily declined in value.

Lending policies of the Federal Reserve in the context of "fractional reserve banking" did not help much.

"Fractional reserve banking" permits a lender to lend out money it does not have by creating bookkeeping credits. That allows the money supply to increase further.

In essence, the owners of the Federal Reserve System are issuing securities, disguised as money.

"Notes", even when they don't pay interest, technically fall into the category of securities subject to the regulatory scheme of both state Blue Sky Laws and the federal Securities Act of 1933.

Every "sale" of securities is an "event" subject to regulation. A "sale" of securities is defined broadly.

When securities regulators want to punish a target, they define a sale as an exchange in which the issuer gets "anything of value."

Purchasers of securities are supposed to get full disclosure when they are sold securities. This would include a prospectus detailing information about the issuer, including financial statements, and the identities of all "control persons" behind the issuer.

Because there has not been an audit of the Fed in quite sometime, nobody is getting financial statements that would hold up to scrutiny under SEC law.

Because the Feds refuse to tell us who the shareholders are, nobody is getting disclosure about control persons,

Because the fractional reserve system devalues dollars yearly, nobody is getting the full value of their investment when they "acquire" dollars in a job or other transactions. Nobody is getting any kind of disclosure about fractional reserve banking when they receive federal reserve notes.

Under securities law, "issuers" are liable for fraud, such as withholding these material facts from us.

Under securities law, victims can "pierce a corporate veil" to make the officers, directors and shareholders of private corporations such as the Federal Reserve Bank personally liable for fraud.

I think they have committed fraud by failing to sufficiently disclose background information about the notes they issue, and they should all be sued.

All officers, directors and shareholders of all the Federal Reserve Banks are, in my opinion, civilly responsible for losses which have accrued to all of us who have Federal Reserve Notes.

Would we win? In an intellectually honest court, no doubt.

The American people have been robbed of trillions by the Federal Reserve crime family.

Every time Alan Greenspan makes a slip of the tongue about his thoughts on interest rates, American shareholders, union pension holders, widows and orphans, people with stock portfolios feel the impact of this malicious manipulation of equities causing billions of dollars of life savings to evaporate in an afternoon. But this is nothing compared to his robbery by inflation.

Consumers feel the loss of their purchasing power when bread and orange juice go up 40% in six weeks, as they recently have. Cat food is up fifty percent. The inflation spiral is just about to get out of control.

Americans, impoverished by debt service and inflation, have on the average $1,200.00 in savings, according to a recent survey commissioned by Merrill Lynch. They are a month away from eviction.

All the talk of prosperity in the press pertains to 5 or 10 percent of the population, i.e. professionals, dot com yuppies, and the merchant elite.

In reality, the Federal Reserve has done a number on most of us. While my heart says the Feds deserve worse, my mind says the best response is a suit against the individuals behind the Fed for securities fraud, racketeering, deceit and violations of the Constitution.

The plaintiffs could include anybody who has a dollar bill in his or her pocket. We could have a lot of plaintiffs.

The law suit would be filed in the United States District Court in Washington, DC, and seek trillions of dollars in damages and forfeiture of all Federal Reserve assets.

It would be a large undertaking, but it would be worth it.

Victory could mean a change in the way the United States currency system and our economy work.