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The FED vs Cannabis:

written by Roger Lothamer for Capitol Seed 10/28/2015

Why Does The Federal Reserve Ban Banking For Cannabis Businesses?

To begin to understand this problem, here are some snippets from Wikipedia that give us some background:

The U.S. Congress established three key objectives for monetary policy in the Federal Reserve Act: Maximum employment, stable prices, and moderate long-term interest rates. It was established in an odd group of circumstances, as is recorded in several books at that time.

The Federal Reserve System is the central banking system of the United States. It was created on December 23, 1913, with the enactment of the Federal Reserve Act, largely in response to a series of financial panics, particularly a severe panic in 1907. Over time, the roles and responsibilities of the Federal Reserve System have expanded, and its structure has evolved.

Its duties have expanded over the years, and as of 2009 also include supervising and regulating banks, maintaining the stability of the financial system and providing financial services to depository institutions, the U.S. government, and foreign official institutions.

The Federal Reserve System has both private and public components to serve the interests of the public and private banks. The structure is considered unique among central banks. It is also unusual in that the United States Department of the Treasury, an entity outside of the central bank, creates the currency used. 

The Fed considers the Federal Reserve System "an independent central bank because its monetary policy decisions do not have to be approved by the President or anyone else in the executive or legislative branches of government, it does not receive funding appropriated by the Congress, and the terms of the members of the Board of Governors span multiple presidential and congressional terms."  In 2010, the Federal Reserve made a profit of $82 billion. 

Current functions of the Federal Reserve System include:

·        To address the problem of banking panics
·        To serve as the central bank for the United States
      To strike a balance between private interests of banks and the centralized responsibility of government
·        To supervise and regulate banking institutions
·        To protect the credit rights of consumers
·        To manage the nation's money supply through monetary policy to achieve the sometimes-conflicting goals of maximum employment,
·        stable prices, including prevention of either inflation or deflation[25]
·        moderate long-term interest rates
·        To maintain the stability of the financial system and contain systemic risk in financial markets
·        To provide financial services to depository institutions, the U.S. government, and foreign official institutions, including playing a major role in operating the nation's payments system
·        To facilitate the exchange of payments among regions
          To respond to local liquidity needs
·        To strengthen U.S. standing in the world economy


 The financial panic in 1907 caused the creation of the Federal Reserve…to address these problems, Congress gave the Federal Reserve System the authority to establish a nationwide check-clearing system. The System, then, was to provide not only an elastic currency – that is, a currency that would expand or shrink in amount as economic conditions warranted – but also an efficient and equitable check-collection system.

In the United States, the Federal Reserve serves as the lender of last resort to those institutions that cannot obtain credit elsewhere and the collapse of which would have serious implications for the economy. 

The Federal Banking Agency Audit Act, enacted in 1978 as Public Law 95-320 and 31 U.S.C. section 714 establish that the Board of Governors of the Federal Reserve System and the Federal Reserve banks may be audited by the Government Accountability Office (GAO). The GAO has authority to audit check-processing, currency storage and shipments, and some regulatory and bank examination functions, however there are restrictions to what the GAO may audit. Audits of the Reserve Board and Federal Reserve banks may not include:

1. transactions for or with a foreign central bank or government, or non-private international financing organization;
2. deliberations, decisions, or actions on monetary policy matters;
3. transactions made under the direction of the Federal Open Market Committee;or

4. a part of a discussion or communication among or between members of the Board of Governors and officers and employees of the Federal Reserve System related to items (1), (2), or (3)

5. The financial crisis which began in 2007, corporate bailouts, and concerns over the Fed's secrecy have brought renewed concern regarding ability of the Fed to effectively manage the national monetary system. A July 2009 Gallup Poll found only 30% of Americans thought the Fed was doing a good or excellent job, a rating even lower than that for the Internal Revenue Service, which drew praise from 40%. The Federal Reserve Transparency Act was introduced by Congressman Ron Paul in order to obtain a more detailed audit of the Fed. 

6. In 1908, Congress enacted the Aldrich–Vreeland Act, which provided for an emergency currency and established the National Monetary Commission to study banking and currency reform. The National Monetary Commission returned with recommendations which were repeatedly rejected by Congress.

7. A revision crafted during a secret meeting on Jekyll Island by Senator Aldrich and representatives of the nation's top finance and industrial groups later became the basis of the Federal Reserve Act. 

8. The House voted on December 22, 1913, with 298 yeas to 60 nays, and the Senate voted 43–25 on December 23, 1913. President Woodrow Wilson signed the bill later that day.

7. Aldrich's bill met much opposition from politicians. Critics charged Aldrich of being biased due to his close ties to wealthy bankers such as J. P. Morgan and John D. Rockefeller, Jr., Aldrich's son-in-law.


Okay. That is the history and the rules, as published on Wikipedia. Now let’s actually look at this situation from another perspective.

This is the fourth U.S. Federal bureaucracy to recently throw up a roadblock on the emerging Cannabis industries in the USA. The DEA, the FDA, & DOJ are the others blocking this valuable and green-sustainable industry of Cannabis.

When we read the info on Wikipedia, it seems to indicate that there are many things going wrong with the Federal Reserve. In fact, most Americans are not pleased with how the Fed handled the mortgage fiascos. When the law says: "Audits of the Reserve Board and Federal Reserve banks may not include: deliberations, decisions, or actions on monetary policy matters;" this means that the Fed is going against the rules of democracy that include transparency and accountability to be expected with our politicians and government.

How does stopping Cannabis industries from banking relate to the sinking economy of America? Over half of the states have passed laws for the implementation of Cannabis already and several more are in the process to do so too. We are not talking about selling guns, this is medicinal Cannabis—the medicine that is saving lives of children who have debilitating seizures.

It is getting very obvious that many of the federal bureaucracies are totally addicted to the money and power they have amassed under the prohibition of Cannabis. These codependency’s are sabotaging our ability to keep up with the rest of the nations that are legalizing Cannabis and making billions of dollars.

Apparently four major Federal Departments are against Obama’s letting states determine the legality of Cannabis. Why would they do that if it means we lose billions, if not trillions--who but the fossil fuel industries and the criminals who are destroying our planet at an exponentially escalating rate?

America is already the main consumer of all Cannabis products in the world. Yet we have had to do massive education and create research that has proven Cannabis is the healthiest and most powerful plant for almost everything green sustainably that a community needs.

Now that the Cannabis information has been snowballing into most of our states with millions of dollars created from the changing laws, it is time to address the federal bureaucracies head on. Remember, these are not politicians, they are servants of the public. They are not elected, and yet hold most of the power.

For thousands of years, humans have always used Cannabis more than any natural resource. The turn of history began in the 1930’s when the fossil fuel industries began to emerge from the Industrial Revolution with new-fangled technologies that were created with petroleum.

Mellon, as the Secretary of the Treasury and president of the Mellon Bank, the richest man in America at that time, had struck crude oil in Texas in a big way. He started the first gas stations and paved roads. He financed the DuPont’s to take over GM, so that the cars they made would run on petroleum instead of the bio-fuels that Ford and Diesel had envisioned.

Many other petroleum-based industries were emerging at the same time. Steel, needing tons of coal to reach the extreme temperatures necessary; for trains, airplanes, paved roads, sidewalks, bridges, tunnels, NYLON fabrics, and myriads of new-fangled inventions, like washing machines and radios—all were forced by the fossil fuel industries to use petroleum-based technologies.

Then the industrialists took over the forests, spurred on by Hearst. The railroads ran on burning coal and wood until diesel trains appeared--diesel made from petroleum instead of bio-fuel.

With Ford’s massive assembly line of cars, and his creation of buying on credit, America quickly became petroleum dependent. Rockefeller and Carnegie made it easier for modern living, but what was the result of the fossil fuels? Pollution, Climate Change, environmental destruction, and economic collapse was the result!

Apparently, the DEA, FDA, DOJ, and the FED are totally ignoring the states’ laws. Apparently they do not care about what the President of the United States thinks about these laws. Here we are on the doorstep of the last chance to get on top of the environmental problems AND the global drug war on Earth.

What is to happen to humanity if we cannot even understand the draconian laws of the U.S. Federal bureaucracies, and when not even the President can stop the rogue bureaucracy nonsense?

Right around the corner is the IRS, could they presume to look into the incomes of the past on some of these states’ citizens? Certainly, Al Capone went to prison for illegal alcohol sales and tax evasion. Many now legally growing and using Cannabis in the states that have passed laws, were doing it illegally for many years. Are the IRS and the DOJ going to fill the prisons with more than the usual 800,000 people per year they imprison for Cannabis use?

What about the global trillion dollar industry of Cannabis? Is America shooting itself into a corner by allowing such dramatic stone-walling? Why would the FED not want the billions from Cannabis? Are they actually run (as is claimed by many) by British banks? Why would the FED allow the banks to get away with the mortgage scams, the CIA drug-money laundering, and the American corporations devastating the environments of the 3rd world countries?

Are these bureaucracies actually evil, or are they just stupid? It appears as though in these tough times, the FED does not care to make trillions off of Cannabis industries. It would rather allow children to die of epilepsy than allow the children to live by using the only medicine that can actually cure them: Cannabis. Not much compassion in these bureaucracies at all.

I do not know the answer, but it sure seems like we are being shafted by these “public servants” who are only serving the causes of the fossil fuel industry’s pollution and deathly destruction of our children. This is almost asking for trouble, like revolution. Will we allow the destruction of our environment or will we stop the nonsense?

Whew, almost makes me want to smoke a joint. It definitely will take a while for me to get used to this FED crap. HOW CAN THEY KEEP US FROM IT, WITHOUT BANKS ANYWAY? Never needed them before legal-pot, and seems won’t either after the FED totally falls into bankruptcy.

If we boycott by not banking our Cannabis profits in the FED banks, and instead just use trade, barter, and cash—then we will soon have all the money, and the FED gets none.

Besides, we can base our economy on Cannabis anyhow. It can provide everything that money can buy, I cannot imagine anything more valuable than the #1 Green Sustainable Resource on Earth—Cannabis. It will give us everything we need to have healthy communities and healthy children, as well as CANNABIS for CURRENCY!

I am not sure what the “call to action” is on this. Certainly it would have the intelligence that the Canadian Liberal Party has about Cannabis—(but not the ignorance of the DEA, DOJ, FDA, and the FED)! It might cause a vast migration of Americans moving to Canada. If things do not change on this soon, I certainly will go live there.

If you have any other solutions to suggest, please send them to me: support@capitolseed.com

 

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