Bank of America Punishes Customers Who Dare to Have a Balance 59 comments
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I have to tell you this bank business is quite the racket; good work if you can get it. Especially when you're handed fistfuls of taxpayers' money from one arm of government (Treasury) and another piece of "government" (they claim to be ... cough... independent) drops interest rates to essentially 0% so any 4 year old girl with a lemonade stand can run a bank.
I can only look forward to the massive bonuses handed out in 2 years to bank executives to make up for the "lean times" they faced under the TARP year... and the fact they somehow guided their banks through one of the most "difficult" periods in history. By difficult, I assume they mean an era where a 4 year old girl (let's call her Ashley) with a lemonade stand could run the bank. "Yes mommy, I get 0% from Uncle Ben, and then I charge people interest on that money! It's so cool! I never lose!! Even Fido lent money to his doggie friends and we made coin! Boo Yah mommy! Boo Yah!"
While the Federal Reserve has been dropping rates to "near zilch," I've noticed my credit card rates have not enjoyed the previous years' "0% balance transfer" offers or even the 1.9%, 2.9% I used to get all the time. I assume they are profiling me for living in a very lousy state, but now I see it's not just me.
According to the Wall Street Journal, any human who owns a Bank of America card and dares to carry a balance shall no longer be allowed an interest rate below 10%. No matter the FICO score. The overlords have commanded it, and it shall be done. So in theory, I/we who enjoy credit card balances shall be subsidizing the bank for those in their portfolio who do not do a little thing called "paying their debts". It's a beautiful system kids - remember, as we have more and more money concentrated in less and less banks at the very top of the 8000 financial institution system, we're subject to their whims from here on out.
So it won't just be credit cards - it will be higher ATM fees, higher overdraft fees, higher "you name, we own you because we pay for politicians' campaigns" fees. Ah the unintended consequences of letting the free markets not work - making the too big to fail even bigger and more important. Let us cheer today for government "saving us" but boo & hiss down the road when we see what our "solutions" brought us. Kick the Can policies at their best.
I've asked Ashley, our 4 year old at the lemonade stand, if she thinks she can make money if the Fed gives it to her at effectively zero and she lends it at 10%+, even notwithstanding that many previous loans she gave out are now going bad. She says "yes!" I promptly ran her through a stress test (counting backwards from 50)... which she failed, but Uncle Tim said "now now, she really passed and here is $30 Billion more in funds Ashley" (wink wink). Ashley just giggled and said "this is so easy! it's like stealing!"
I knew Ashley was smarter than she looked.
Via Wall Street Journal
- Bank of America Corp. is raising interest rates on as many as four million U.S. credit-card customers who carry a balance, becoming the latest bank to crack down on people who don't pay off their bill every month. Starting with June account statements, any credit-card customer who carries a balance and has an interest rate below 10% will see his or her rate jump into double-digit territory.
- The bank's move follows similar rate increases that other banks, including Citigroup Inc., J.P. Morgan Chase & Co., and American Express Co. have implemented in recent months. (ah! all TARP recipients - I'm getting it on both ends) The banks, facing rising delinquencies, blame the economic turmoil. Many have been tightening the screws on people with less-than-perfect credit, but now they're pinching a broader range of customers who have good credit records, but carry a balance.
- The rate increases come as many Americans are losing their jobs and losing easy access to other forms of credit, like home-equity loans. That makes millions of cardholders even more dependent on their credit cards to get by.
- The Federal Reserve and other bank regulators passed rules in December that would limit banks' ability to raise credit-card interest rates. But that doesn't start until July 2010. [Dec 18, 2008: New Limits on Credit Card Companies; in a Related Note - Hell Freezes Over]
- Bank of America said it started notifying customers of the rate increases last week. "The increase on these accounts reflects the current economic conditions where our cost of providing credit has significantly increased," Ms. Reiss said. (what?! what?!! what?????????? yield curve Ms. Reiss??) Consumer advocates see another motive. The banks "want to mess with people before they can't," said Ed Mierzwinski, consumer program director with the U.S. Public Interest Research Group, a consumer advocacy group in Washington, D.C. "Every day they can earn income at a higher interest rate is more profits for them."
- In January, Chase Card Services changed the terms for thousands of customers who had low interest rates but were carrying a balance. In Chase's case, customers had to agree to pay at least 5% of their balances every month instead of the previous 2%. If they couldn't meet the higher minimum payment requirement, they would have to give up their promotional rate and accept a higher one instead. Chase's change sparked a number of class-action lawsuits from angry consumers who had taken advantage of the bank's promotional offers.
- Separately, Citi and American Express raised the regular interest rates by two to three percentage points across many of their cardholders last fall.
- In some cases, banks are offering carrots to get customers to pay down their balances. In February, for example, American Express offered select customers a $300 AmEx prepaid gift card if they pay off their balances and close their accounts. [Feb 24: American Express to Customers to its Customers: Please Go Away. Here's $300 to Spur You to Leave]
- Sandra Frye of Phillips, Wis., said the recent tightening by banks has prompted her to pay off her balances more quickly. "I won't be adding to the economy because I'm going to pay these guys off and get them out of my hair forever," said the 66-year-old. Ms. Frye, an adult home-care provider, (I thought it was unpatriotic to not shop? Ms. Frye - you are hurting your country by not spending over your head so our malls can thrive. But between me and you... good job)
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This article has 59 comments:
Also funny is the fact we are only a few weeks past the point where conventional wisdom claimed that banks are insolvent and the vast majority will fail... and now already we have an article claiming the banks are making too much money.... which is it?
No credit glitches on my end to explain this. Included in the letter was an automated phone number to decline the new terms and cancel the card. I did.
Do you think living in Michigan has something to do with this?
I just want to point out that people made the "mistake" of borrowing from the Mafia (sorry, you should have known better). Now they're sending their wise guys to collect. And why are you surprised?
This Will Not End Well.
On Apr 12 08:01 PM dcb wrote:
> Hey, I looked at wells fargo and they weren't to release their earnings
> until later this month. on top of that the citi leaked memo. Is there
> anybody still out there that doesn't believe this whole rally was
> manipulated from the citi, to bernaker buying treasury's, then markt
> to market right before G-20. Now leaked WFC earnings. This is why
> I am advising all my friends to never hold another american stock,
> and get out out of the dollar. Government is supposed to stop market
> manipulation, not sanction it. Why isn't this BS against the law.
> Are we going to get a "leak" at every drop. I hate our country.
"Banking establishments are more dangerous than standing armies". - Thomas Jefferson
> Hey, I looked at wells fargo and they weren't to release their earnings
> until later this month. on top of that the citi leaked memo. Is there
> anybody still out there that doesn't believe this whole rally was
> manipulated from the citi, to bernaker buying treasury's, then markt
> to market right before G-20. Now leaked WFC earnings. This is why
> I am advising all my friends to never hold another american stock,
> and get out out of the dollar. Government is supposed to stop market
> manipulation, not sanction it. Why isn't this BS against the law.
> Are we going to get a "leak" at every drop. I hate our country.
Awareness dawns for you dcb.
The Complexity Of Corruption Is Vast.
The Government Collusion IS The Root Of The Problem.
How this plays out is anyones guess.
The Curtain Has Begun To Fray And The Land Of OZ Begins To Question.
I know that they justify letting companies get bigger by saying that it provides more choices to customers (uh, huh, less companies to choose from for the same product gives you more choices how?) or that it will provide savings which will be passed on to the consumer (yeah, right).
But does anyone think we're better off now than we were when instead of JP Morgan Chase we had Chase Manhattan and JP Morgan? Does anyone think that the consumer or the country is better off by having only Bank of America when we used to have B of A and Nations Bank?
Lending rate for them is virtually 0%...and they lend back to us at what mortgage rates? 5% plus 2 points on a mortage, closing costs at all time highs. Historical spread is (approx 2.75%), dont quote me on that, i cant find my data to support, but that is what i remember from my research.
Point is, its a HUGE spread they are taking. Why would they take ANY RISK when the government is funding them with free money and they can take the spread. Furthermore, seeing the spreads they are taking on mortgages and to some degree credit cards, and dialing back on lines of credit speaks to another point.
They see INFLATION coming sooner than later. If it were not for that, the spreads would close, and they wouldn't be demanding 2+ points...but the spreads haven't closed, as desperately as the new administration has tried.
Take a clue from the bankers as to our 5 year outlook on inflation...psst.....they are planning for it already.
On Apr 12 09:02 PM Woodman wrote:
> I just applied for a BofA credit card (Alaska Airlines Visa) and
> was turned down for the first time in my life. I have a credit score
> of 854 out of 990, always pay off my monthly balances, have a great
> job with good pay, and they decline me. Something is seriously wrong
> at BofA. They will lose tons of business because of actions like
> this. No way will I consider switching my Wells Fargo checking to
> a BofA account. I can't wait to drop my Countrywide Mortgage as
> well. Good luck BofA and your new rules of engagement.
If you don't like their fees, go bank at Citi - dumb ass!
I love B of A.
On Apr 12 08:59 PM PainfullyAware wrote:
> On Apr 12 08:01 PM dcb wrote:
to buy what you want!
On Apr 12 08:38 PM junkyarddog wrote:
> I know all of this is tough, but... why on Earth would anyone have
> a credit card balance? Sorry, I'm not here to step on your toes,
> but what happened to living within your means?
>
> I just want to point out that people made the "mistake" of borrowing
> from the Mafia (sorry, you should have known better). Now they're
> sending their wise guys to collect. And why are you surprised?
There is one more angle to all this: if we do experience higher than normal inflation it helps the customer who would pay back their debts with inflated dollars of far lesser value. The banks are scrambling to reduce their debt and loathe to take on new debt, not matter what the quality. Of course they will do refinances on existing mortgages. These activities produce fees and do not harm there position measurably. Why? Because when the PPIP gets going, the banks will unload more debt to the PPIFs of which they will own a minority share for little or nothing. The risk will then transfer to FDIC (read: taxpayers).
If Bernanke & Co. can keep inflation in check long enough to declare the first round of the PPIP a success, the Treasury will have more political leverage with Congress. Then we could see a second round and possibly a third. The banks will then be out of the "risk business" having managed to pass the majority on over to the taxpayers. If the PPIFs do fail, the banks will have gained far more than they had invested in the PPIFs. Remember, the head of the FDIC said she would consider allowing banks to use assets transfered to the funds as investment collateral. Just send us some of your toxic assets and we'll give you credit.
The latest estimate of toxic asset held by U.S. banks is $3.1 Trillion. Three rounds of the PPIP should pretty much clean up the banks balance sheets. Then they will convert as much as possible to adjustable rate instruments using swaps and stick someone else with the risk of higher interest rates in the future.
I want to be very clear on one point: I do not condone what is being done to the American taxpayer or what the banks are doing to dig themselves out of the mess they created. However, if Congress allows the PPIP to proceed, I predict that the banks will become great investments. They will probably also lead us into the next bubble. I don't know what it will be, but I'm sure they'll think of something creative.
Then there is the arguement that if the U.S. does experience high levels of inflation, the result will be the devaluation of the US$. There is a lot at risk in this strategy, not the least of which are the advantages of being a global reserve currency. There are a lot of pieces that go into the "resilience" of the American economy. If we cut too many legs off the stool, we may lose our balance.
I'm not giving up yet, while it may sound like it, because I still believe that we have the best market-based economy ever devised throughout history. We have gone through a lot of crises as a country. We can get through this one as well. But the bill will eventually come due, and it won't be the banks picking up the check. I'm sorry, but I just don't think it's right!
err, I'm sorry, why not credit in a world full of green shoots. Just probability theory.
On Apr 12 08:20 PM Dr. O wrote:
> Mark, I've had a Capital One card for years, a huge line of credit
> (I didn't ask for it), and have paid off my balance monthly on time.
> I received a "change in terms" letter about 2 months ago, and was
> notified my interest rate on purchases was going up from 8% to 18%.
>
>
> No credit glitches on my end to explain this. Included in the letter
> was an automated phone number to decline the new terms and cancel
> the card. I did.
>
> Do you think living in Michigan has something to do with this?
My piece was tongue in cheek - as the "Pandit memo" clearly laid out - Citigroup is making money hand over fist as it borrows at 0%ish and lends at "anything greater than 0%ish"
Now if you could only look past all the loans sitting on their books in the past, business is booming. And all it takes is obliterating the yield curve and the future inflationary pressure (and current obliteration of yields on savings accounts). But not to worry - that only affects people trying to invest conservatively or folks like senior citizens.
Corporate socialism is alive and well... it is ironic we fear that word, but in very little fashion does it parallel anything done in Europe ... where socialism is "for the people". Here its a fear mongor while we privatize gains and socialize losses. For businesses... but only the big ones. Small ones? Too small to care if they fail.
On Apr 12 07:26 PM fcharlie wrote:
>
> Also funny is the fact we are only a few weeks past the point where
> conventional wisdom claimed that banks are insolvent and the vast
> majority will fail... and now already we have an article claiming
> the banks are making too much money.... which is it?
Tighten your belts and watch the economy contract. No stimulus can offset tens of trillions that have been lost, lot more likely.
On Apr 12 09:28 PM user 385544 wrote:
> Forgive my sarcasm, but why would banks care about the consumer right
> now.
>
> Lending rate for them is virtually 0%...and they lend back to us
> at what mortgage rates? 5% plus 2 points on a mortage, closing costs
> at all time highs. Historical spread is (approx 2.75%), dont quote
> me on that, i cant find my data to support, but that is what i remember
> from my research.
>
> Point is, its a HUGE spread they are taking. Why would they take
> ANY RISK when the government is funding them with free money and
> they can take the spread. Furthermore, seeing the spreads they are
> taking on mortgages and to some degree credit cards, and dialing
> back on lines of credit speaks to another point.
>
> They see INFLATION coming sooner than later. If it were not for that,
> the spreads would close, and they wouldn't be demanding 2+ points...but
> the spreads haven't closed, as desperately as the new administration
> has tried.
>
> Take a clue from the bankers as to our 5 year outlook on inflation...psst.....they
> are planning for it already.
Has HSBC received any Government funds via AIG or other means,if anyone knows,post it here.
So, who again is paying back TARP? The banks or the consumer? *wink*. I don't think its right, quiet frankly it SUCKS!
I believe what the banks are doing now is an inflationary signal...its hanging out there, people see it.
On Apr 13 08:53 AM jamesa40 wrote:
> Free money from the government? Are you kidding? All those TARP
> funds cost 5%. In three years, it goes to 8%. How is that free
> money? Not to mention the fact that the government now wants a
> say in everything the bank does (i.e. marketing, conventions, etc).
> Personally, the banks should be jacking up the rates for the mispricing
> of risk they have done for the last 5 years. I hope they raise a
> ton of money so they pay back the government ASAP. Then, the taxpayers
> get back their funds and the government gets out of the private sector.
> So raise away banks and give back my money!
Stop whining on blogs and move your money and borrowings elsewhere. That will send a far bigger message to BOFA than your simplistic rants here
Regards
On Apr 13 08:53 AM jamesa40 wrote:
> Free money from the government? Are you kidding?
On Apr 13 11:01 AM user 385544 wrote:
> I think you missed the point (and the sarcasm), your agreeing with
> me and don't even realize it. What you are essentially saying is
> business costs and in this case RISK are always passed back to the
> consumer.
>
> So, who again is paying back TARP? The banks or the consumer? *wink*.
> I don't think its right, quiet frankly it SUCKS!
>
> I believe what the banks are doing now is an inflationary signal...its
> hanging out there, people see it.
You may be able to get great deals on overseas travel right now but Bank of America is ready to jump in and take a piece of that savings. I just got a notice that BoA will be adding a 3% transaction fee (based on $US equivalent) on all transactions processed outside the US. So now they will get not only the 3-5% from the vendor but another 3% from you.
What are your options?
Use your debit card to get cash for transactions
Traveler’s checks
Write Bank of America and remind them that you will not be making purchases with the card and they will not only be missing out on your 3% but also on the vendor’s percentage.
Fiscally yours,
Claire Felong,
I would like to post something for readers who have not seen this. This has floated around the internet for years; I invite anyone to authenticate the contents. As we all know the trash that floats around the internet. If it is indeed factual, in its entirety, well i just find it astonishing to say the least.
Specifically, what the federal reserve banks actually pay for currency.
Phone call to the Fed.
www.rense.com/general2...
On Apr 13 12:55 PM TraderMark wrote:
> You are missing what the Federal Reserve is doing...
One of my friend's told me her bank ( can't remember which one) closed her equity line, which she and her husband had for years, and never used.
As far as the credit cards are concerned, unless you pay off your balance in full whenever you use them, you are stepping into quicksand.
Not All Is Corrupt.
To Assume That Their Is No Corruption In The Face OF Overwhelming Fact Is "As Dum As They Come". We Would Not Be Where We Are Today Except For The Collusion Of Participants.
Those who never as questions receive no answers.
The Mentally Minuscule Doom Us All.
On Apr 12 09:59 PM 0101001 wrote:
> Yes, it's all a vast conspiracy - jeez! No wonder obummer was elected.
>
Unplugging from the system has saved me a lot of money, aggravation, and time.
On Apr 12 08:59 PM PainfullyAware wrote:
> On Apr 12 08:01 PM dcb wrote:
"The risk/reward paradigm of the new and improved capitalism is that the banking system's risk is to be borne by taxpayers, whilst the rewards are to go mostly to the banks. This ensures that banks cannot lose, but can only profit. I strongly disapprove of this distortion of free markets, but it now appears to be reality, especially as details of PPIP emerge; so I have long positions in several major US banks which I would have avoided in a traditional, capitalist free-market environment."
Now I understand his logic, but I can't bring myself to jump into bed with these B*$t*rds!
I purchased 1500 shares of B of A because I believed in the strength of the bank and was receiving a nice dividend.
I also have a loan with B of A because they believed in me and I pay them some nice interest.
Since then their financial condition and declined dramatically while mine and remained solid. Not only did my investement decrease but they stopped paying me most of my dividend.
Wouldn't it be fair if I stopped paying them their nice interest?
I hate my country. I hate that I elected a man who promised change and then put all the same people who caused this mess back in power.
I hate my country. why is direct relief to the consumer stuck in congress when the fed and treasury funnel trillions to the banks. Do you think this can happen without the white house wanting it to happen?
I thought Bush and the gang were a bunch of crooks, but Obama has put them to shame. It's the guys who can stab you in the back and get you to thank them for it that are the real evil ones.
On Apr 12 08:53 PM hothead wrote:
> Then get out!!!
On Apr 13 07:21 PM dcb wrote:
> actually working on it. figure I'm better off leaving it to the folks
> who don't believe we should question authority. Just remember when
> you are living in a third world country with high inflation and a
> very weak dollar and no social safety net, and the bankers have all
> the money I'll be the one laughing at you. I hate our country. I
> believe we were given the right to bear arms for situations like
> this so we could over throw a government that isn't responsive to
> the people. when I am being taxed to bail out banks, they are avoiding
> oversight by going through fed and treasury. I call that taxation
> without representation. That's what we had a revolution for and it
> is going on now. when your grandchildren are being taxed to ensure
> Blankfein's offspring never have to work for an eternity, I'm going
> to be laughing at you. we have russian crony capitalism at it's best.
> the well connected keep getting more, anyone who questions that gets
> yelled at for being unamerican, and the people who usually yell the
> most are the one's loosing the most. although they are often too
> stupid to notice.
>
> I hate my country. I hate that I elected a man who promised change
> and then put all the same people who caused this mess back in power.
>
>
> I hate my country. why is direct relief to the consumer stuck in
> congress when the fed and treasury funnel trillions to the banks.
> Do you think this can happen without the white house wanting it to
> happen?
>
> I thought Bush and the gang were a bunch of crooks, but Obama has
> put them to shame. It's the guys who can stab you in the back and
> get you to thank them for it that are the real evil ones.
I stayed with them through the increased fees debacle in the late 90's.....I stayed with them when they stupidly put talking voices in their ATMs. They must be a bunch of kids in a conference room amening the execs numb brained ideas with no challenge from anyone with common sense.
On Apr 13 08:41 PM Sober Realist wrote:
> "If Americans ever allow banks to control the issue of their currency,
> first by inflation and then by deflation, the banks will deprive
> the people of all property until their children will wake up homeless."
> - Thomas Jefferson 200 years ago.
I pointed this out to Geoffster on a post on another column (something about the terrifying balance sheet at banks):
Nice quote from Jefferson. Unfortunately it's completely bogus. The term "deflation" was not used before the late 19th century or early 20th century, I'm not sure when the term "inflation" was first used but I don't believe it was in common usage at any point during Jefferson's lifetime. The quote you repeated was apparently manufactured during the 1930s, it is commonly attributed to being in a letter from Jefferson to Gallatin but that particular letter does not exist.
On the other hand, it is pretty well known that Jefferson mistrusted and disliked big banks. Had he been alive today he might have actually written that quote -- but he isn't and he didn't.
My own opinion now is starting to follow whomever said that anything that is too big to be allowed to fail should be "too big to be allowed".
newamericanteaparty.com/
There are credit agreements in place with all card holders. If the new terms of my credit card is unacceptable, I tell the credit card company and they make a new offer or loose me as a customer when I cancel the credit card.
The congress of the United States of America did more to damage our citizens that live beyond their means in 2005 with the passage of the new bankruptcy law, which became effective in October 2005, made significant changes in the way America’s courts handle the insolvencies of Americans and American businesses.
Most importantly for the bill’s chief cheerleaders, America’s credit card companies, the nation’s unsecured, defaulted debt now has a greater possibility of being repaid.
Thus, for those who owe money through uncollateralized, revolving credit arrangements, it has become much harder to get out of debt when they are hard pressed to pay.
Since I have always lived within my means, and never carry a credit card balance, changing the terms of our credit agreement rarely has had an effect on me personally.
If I had been living beyond my means, supporting my lifestyle on borrowed money, the warning shot sent across the bow in 2005 would have been my wake up call.
I hope we all find a way to adjust our lifestyles so that we find happiness living within our means. That is the best way to hurt these unsecured creditors.
So again, nice quote, but unfortunately not something that Jefferson could have ever written.
On Apr 13 08:41 PM Sober Realist wrote:
> "If Americans ever allow banks to control the issue of their currency,
> first by inflation and then by deflation, the banks will deprive
> the people of all property until their children will wake up homeless."
> - Thomas Jefferson 200 years ago.
"The Central Bank is an institution of the most deadly hostility against the principles and form of our Constitution... I believe that banking institutions are more dangerous to our liberties than armies...The issuing power should be taken from the banks and restored to the People to whom it properly belongs."
--Thomas Jefferson
"You are a den of vipers. I intend to rout you out and by the Eternal God I will rout you out. If the people only understood the rank injustice of our money and banking system, there would be a revolution before morning."
--Andrew Jackson, 1828 (to a group of investment bankers trying to persuade him to renew their charter)
"The bold effort the present (central) bank had made to control the government ... are but premonitions of the fate that await the American people should they be deluded into a perpetuation of this institution or the establishment of another like it."
- President Andrew Jackson
"History records that the money changers have used every form of abuse, intrigue, deceit, and violent means possible to maintain their control over governments by controlling money and its issuance."
- President James Madison
"I do not feel it is any exaggeration to speak of our secret expedition to Jekyll Island as the occasion of the actual conception of what eventually became the Federal Reserve System (1913). We were told to leave our last names behind us. We were told further that we should avoid dining together on the night of our departure. We were instructed to come one at a time and as unobtrusively as possible to the railroad terminal on the New Jersey littoral of the Hudson where Senator Aldrich’s private car would be in readiness attached to the rear-end of a train to the south. Once aboard the private car we began to observe the taboo that had been fixed on last names. We addressed one another as Ben, Paul, Nelson and Abe. Davison and I adopted even deeper disguises abandoning our first names. On the theory that we were always right, he became Wilbur and I became Orville after those two aviation pioneers the Wright brothers. The servants and train crew may have known the identities of one or two of us, but they did not know all and it was the names of all printed together that would’ve made our mysterious journey significant in Washington, in Wall Street, even in London. Discovery we knew simply must not happen.....If it were to be exposed publicly that our particular group had gotten together and written a banking bill, that bill would have no chance whatever of passage by Congress.”
-Frank Vanderlip, Bank President, Saturday Evening Post, 02/09/1935
We have in this country one of the most corrupt institutions the world has ever known. I refer to the Federal Reserve Board and the Federal Reserve Banks, hereinafter called the FED. They are not government institutions. They are private monopolies which prey upon the people of these United States for the benefit of themselves and their foreign customers."
-Congressman Louis McFadden
"Some people think the Federal Reserve Banks are US government institutions. They are not... they are private credit monopolies which prey upon the people of the US for the benefit of themselves, their foreign and domestic swindlers, and rich and predatory money lenders. The sack of the United States by the Fed is the greatest crime in history. Every effort has been made by the Fed to conceal its powers, but the truth is the Fed has usurped the government. It controls everything here and it controls all our foreign relations. It makes and breaks governments at will."
--Congressman Louis McFadden
"This [Federal Reserve Act] establishes the most gigantic trust on earth. When the President (Wilson} signs this bill, the invisible government of the monetary power will be legalized....the worst legislative crime of the ages is perpetrated"
-Congressman Charles Lindbergh Sr. (father of the famous aviator)
"When a government is dependent upon bankers for money, they and not the leaders of the government control the situation, since the hand that gives is above the hand that takes. Money has no motherland; financiers are without patriotism and without decency; their sole object is gain.'
-Napoleon Bonaparte
"The death of Lincoln was a disaster for Christendom. There was no man in the United States great enough to wear his boots and the bankers went anew to grab the riches. I fear that foreign bankers with their craftiness and tortuous tricks will entirely control the exuberant riches of America and use it to systematically corrupt civilisation."
--Otto von Bismarck, after the assassination of Pres. Lincoln
“We are in danger of being overwhelmed with irredeemable paper, mere paper, representing not gold nor silver; no sir, representing nothing but broken promises, bad faith, bankrupt corporations, cheated creditors and a ruined people.”
-- Daniel Webster, American Statesman
"Most Americans have no real understanding of the operation of the international money lenders. The accounts of the Federal Reserve System have never been audited. It operates outside the control of Congress and manipulates the credit of the United States."
-- Senator Barry Goldwater (Rep. AR)
"Few Americans give much thought to the Federal Reserve System or monetary policy in general. But even as they strive to earn a living, and hopefully save for the future, Congress and the FED work insidiously against them. Day by day, every dollar you have is being devalued.
The greatest threat facing America today is the disastrous fiscal policies of our own government, marked by shameless deficit spending and Federal Reserve currency devaluation. It is this one-two punch-- Congress spending more than it can tax or borrow, and the Fed printing money to make up the difference-- that threatens to impoverish us."
- Congressman Dr. Ron Paul