The Exchange Stabilization Fund (ESF) established by the Gold Reserve Act of 1934 was it created for the distribution of federal reserve notes around the world? (see video below for the evidence)

The federal reserve note IS NOT the true U.S. Dollar.

The federal Reserve Note is a Faith Based Fiat Currency fiction system used by corporations and institutions for profit through the use of a double entry bookkeeping system which historically evidences to be a vertical financial pyramidal scheme. Fiat currency is worthless without a guarantee from a government (see Due Diligence)


1) Is the Secretary of the Treasury having the authority regarding the federal reserve note according to the evidence in this section?

2) For what true purpose is the Secretary of the Treasury distributing federal reserve notes via the Exchange Stabilization Fund (ESF)?

The Gold Reserve Act of 1934 is the legal basis for the Exchange Stabilization Fund (ESF). As amended in the late 1970s, the Act provides in part that “the Department of the Treasury has a stabilization fund …Consistent with the obligations of the Government in the International Monetary Fund (IMF) on orderly exchange arrangements and an orderly system of exchange rates, the Secretary …, with the approval of the President, may deal in gold, foreign exchange, and other instruments of credit and securities.

The secret fund of the Secretary of the United States Department of the Treasury is called “The Exchange Stabilization Fund” (ESF) and was established through the act of 1934.

“The Exchange Stabilization Fund is operated by the U.S. Secretary of the Treasury…”

See website

“Section 2 of the act transferred ownership of all monetary gold in the United States to the US Treasury. Monetary gold included all coins and bullion held by individuals and institutions, including the Federal Reserve.”

“Sections 5 and 6 of the act prohibited the Treasury and financial institutions from redeeming dollars for gold, inverting the system that had prevailed in the United States since the nineteenth century. Under that system, the government converted paper currency to gold coins, whenever citizens desired to do so. Now, the government converted gold into dollars, regardless of whether citizens wanted to engage in the exchange.”

“Section 10 of the act established a stabilization fund of $2 billion under control of the Treasury. These funds came from the profits the government earned when it raised the price of gold. The Treasury could use the Exchange Stabilization Fund (ESF) to buy or sell gold, foreign currencies, financial securities, and other financial instruments in order to control the dollar’s value and to conduct open-market operations without the assistance (or approval) of the Federal Reserve.”

“With the passage of this act, therefore, the central banking system of this country formally surrendered one of the chief privileges and duties which it had exercised prior to suspension of gold payments. … The Administration has assumed responsibility for defining our monetary policies (Washington Post February 17, 1934, 8).”

“So, rather than formulating monetary policy, the Federal Reserve implemented policies devised by others, principally the Treasury. The Federal Reserve did not regain control over monetary policy until the Fed-Treasury Accord of 1951.”

“The US Treasury has used the ESF to promote exchange rate stability and counter disorderly conditions in foreign exchange markets. It did this by buying and selling foreign currency and by providing short-term credit to foreign governments and international monetary authorities. During the financial crisis in the fall of 2008, the US Treasury used the ESF to establish a temporary insurance program for money-market mutual funds (Blinder 2013, 145-7; Humpage 2008). Operations of the ESF are normally conducted through the Federal Reserve Bank of New York, operating in its capacity as a fiscal agent for the Department of Treasury.”

See website

“The ESF also may provide short-term credit to foreign governments and monetary authorities. These ESF “bridge loans” are financed through swaps. That is, the dollars held by the ESF are made available to a country through its central bank in exchange for the same value of that country’s currency.”

“The ESF is used to hold and administer Special Drawing Rights (SDRs), which are assets created by the IMF that the IMF lends to countries that need help to finance balance-of-payment deficits. SDRs were created to increase international liquidity and are permanent resources of the ESF after they are allocated to, or otherwise acquired by, the United States Treasury.”

See website

The Exchange Stabilization Fund (ESF) and Its History


US Treasury Covenant Laframboise – Problem vs Solution




Statement Of Frank A. Vanderlip, New York, NY

(See p.21 of document / p.23 in the PDF)