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					OpEdNews
                               December 27, 2008

           This Financial Mess - Causes and Cures
                                 By Mike Kirchubel

  Abolish the Federal Reserve System, Treasury Bills, Notes, Bonds, And
                            the National Debt

"We have come to be one of the worst ruled, one of the most completely
controlled governments in the civilized world - no longer a government of free
opinion, no longer a government by... a vote of the majority, but a government
by the opinion and duress of a small group of dominant men.” - President
Woodrow Wilson

"From the Great Depression, to the stagflation of the seventies, to the burst of
the dotcom bubble in 2001, every economic downturn suffered by the country
over the last 80 years can be traced to Federal Reserve policy." - U. S. Rep., Ron
Paul

“The Federal Reserve System is the biggest fraud ever foisted upon the American
public. This private enterprise controls our politicians, our major media, sucks
hundreds of billions of dollars from the pockets of U.S. taxpayers every year, has
caused incalculable suffering, thousands of deaths, and yes Virginia, it is a
conspiracy. It was born of conspiracy and continues today in secrecy.” – Mike
Kirchubel, blogger.

"One of the things important about history is to remember the true history." -
George W. Bush, Washington, D.C., June 6, 2008

This report could easily be several hundred pages long. It covers ground from
1700 to tomorrow. The hardest part of writing it was to distill the vast amount of
information available to a size readable at one sitting. If you dare continue, you
will learn that, beyond the blatant theft outlined in current headlines,
international bankers have conspired to steal our money and property for
hundreds of years. Today, without your knowledge, we exist as sharecroppers,
toiling in their fields, sending them a significant portion of our income every year.
You will soon come to know that, more than Congress or the President, the
private corporation known as the Federal Reserve, shrouded in secrecy, controls
our daily existence and the destiny of our children. 
     


As money and its pursuit seem to occupy more and more of our lives, we seem to
fall further and further behind. Americans work more hours and pay more for
healthcare than any other industrialized nation. Yet typically, we Americans are
one car wreck, one hospital stay from the total collapse of our financial house of
cards. We are now witnessing this car wreck on a national scale. We no longer
live in the world of our parents, with leisure time and where only one parent
works.. unless the other one was just laid off. Occasionally, rarely, one of us
escapes our seemingly pre-ordained fate and, just like the variable reinforcement
strategies practiced in casinos, probably this inspires the rest to continue
plugging along. Stable jobs and stable currency are curiosities found only in
history books. Turmoil and inflation are as natural to us as sunrise and sunset.
We perceive financial chaos as “normal” and no longer question our government
when they say we must pay two trillion dollars to rich bankers, or $10 billion a
month for war without end, or that Rumsfeld misplaced $2.3 trillion on the day
before 9/11. 
     


“Just let me have my toaster, my TV, and my steel-belted radials and leave me
alone,” to quote Howard Beale from, “Network.” Your TV may let your mind
slumber, but I will not. If you dare proceed, your next few minutes of reading
will very likely enrage you because, as Gloria Steinem aptly stated, “The truth will
set you free, but first it will piss you off.” 
 


This is not your usual blog. The information presented consists of historical facts,
documented by quotations from noted individuals of each era. Consider them
eyewitnesses in the conspiracy trial of the Federal Reserve. Weigh the evidence
and judge for yourself. I figured you would sooner believe the people who
actually participated in the events discussed than the random rants of this writer.
These are not the facts we were taught in our public schools, but they are facts,
nonetheless. History is written by the winners and as you will soon understand,
these winners do NOT want you to know their history. “He, who controls the
present, controls the past. He, who controls the past, controls the future.” -
George Orwell, 1984. Google everything. The truth is out there.

                           America’s Hidden History

Believe it or not, international bankers started screwing with us Americans in the
1700’s! By the mid 1700s, the American Colonies were doing well, there was no
income tax, no unemployment, and prices were generally stable. Benjamin
Franklin wrote, “There was abundance in the Colonies, and peace was reigning on
every border. It was difficult, and even impossible, to find a happier and more
prosperous nation on all the surface of the globe. Comfort was prevailing in every
home. The people, in general, kept the highest moral standards, and education
was widely spread.”

When Franklin went to London in 1763, he saw a completely different situation.
“The streets are covered with beggars and tramps,” he wrote. He asked his
friends how England, with all its wealth, could have so much poverty among its
working classes. They replied that England had too many workers! The well-to-
do were already overburdened with taxes, and could not pay more to relieve the
poverty of the unemployed workers. Members of the British Board of Trade
asked Franklin how the American Colonies managed to collect enough money to
support their poor and Franklin replied, “That is simple. In the Colonies, we issue
our own money. It is called Colonial Scrip. We issue it in proper proportion to
the demands of trade and industry to make the products pass easily from the
producers to the consumers. In this manner, creating for ourselves our own
paper money, we control its purchasing power, and we have no interest to pay to
no one."

The Bank of England, realizing that Colonial Scrip was cutting into their profits,
pressed Parliament for the passage of the Currency Act of 1764. This act forced
the Colonies to use only British money and to pay taxes in only gold or silver.
This put the Colonies under the control of the British Central Bank. With the loss
of Colonial Scrip, an economic depression set in. "The colonies suffered a
constant shortage of currency with which to conduct trade. There were no gold or
silver mines and currency could only be obtained through trade as regulated by
Great Britain." When the money supply is cut, recession and depression
invariably result. Remember this; you will see it again and again.

Franklin reported that one year after the implementation of the Currency Act; the
streets of the Colonies were filled with unemployed beggars, just like in England.
The amount of circulating money had been cut in half. Franklin stated that the
Currency Act was the true cause of the American Revolution - and not the tax on
tea or the Stamp Act, as we were taught in our history books. Franklin wrote,
“The colonies would gladly have borne the little tax on tea and other matters had
it not been that England took away from the colonies their money, which created
unemployment and dissatisfaction. The inability of colonists to get power to issue
their own money permanently out the hands [by the hand] of George III and the
international bankers was the prime reason for the Revolutionary War.”

After the Revolutionary War, there was a push to establish a central bank in the
United States. Thomas Jefferson argued against the institution of the bank,
mostly citing constitutional concerns on the limitations of government. "I
consider the foundation of the Constitution as laid on this ground that: "All
powers not delegated to the United States by the Constitution, nor prohibited by
it to the states, are preserved to the states or to the people. " ... To take a single
step beyond the boundaries thus specially drawn around the powers of Congress
is to take possession of a boundless field of power, no longer susceptible of any
definition. The incorporation of a bank, and the powers assumed by this bill
(chartering the first Bank of the United States), have not, been delegated to the
United States by the Constitution." - Thomas Jefferson (1791). Jefferson, having
helped to write the Constitution, was obviously correct in its interpretation. Now,
the Supreme Court tries to guess what the writers meant; Jefferson is actually
telling us what HE meant: The central bank is unconstitutional.

"If the American people ever allow private banks to control the issue of their
currency, first by inflation and then by deflation, the banks and corporations that
will grow up around them will deprive the people of all property until their
children will wake up homeless on the continent their fathers conquered". -
Thomas Jefferson 1802. Remember that line, “first by inflation and then by
deflation ... the banks will deprive the people of all property...” As we shall see,
Thomas Jefferson was exactly right. Banks have used this strategy repeatedly
throughout history, each time gaining a bigger and bigger piece of the economic
pie.

First, they make money plentiful and inexpensive so that people expand their
business and buy farms and homes. Then, they raise interest rates and contract
the money supply, forcing bankruptcies and foreclosures, obtaining properties at
a fraction of their original cost. What do you think is happening right now? 
 Our
nation started its existence in debt from the Revolutionary War. Jefferson argued
to eliminate the debt, and Hamilton argued debt was necessary to keep the
nation together. The Hamiltonians, the conservatives of their time, won and
consequently it has been argued that this basic difference between these two
founders was the beginning of the liberal vs. conservative split in our country.
It’s interesting to note that the ones who wanted the debt were the
“conservatives.” Contrary to popular opinion, (and remember that you read it
here first) – even today, those “Borrow and Spend” Republican administrations
are responsible for almost ALL of our $11 trillion national debt. Contrast that to
the “Tax and Spend” or, should I say, “pay as you go” Democrats! Yes, it’s true.
From the founding of our country up through the Carter administration, our U.S.
National Debt was about one trillion dollars. That’s right, after two hundred years
of history, including the Revolutionary War, the Civil War, two World Wars, the
Korean War, and the Vietnam debacle, our national debt was $1 trillion. Let’s
blame Democrat Jimmy Carter for the whole thing, $1 trillion. After 8 years of
Republican Reagan, the debt stood at $3 trillion. 4 years of Republican George
H.W. Bush got it to $5 trillion. 8 years of Democrat Clinton raised it another
$1trillion to $6 trillion. Finally, after 8 years of Republican Bush II, we owe an
additional $5 trillion dollars. Right now, we are looking at $11 trillion in debt and
we taxpayers are paying about $500 billion in interest every year. You tell me
who the “conservative” is. Hey, DON’T believe me. Google it. “No generation
has a right to contract debts greater than can be paid off during the course of its
own existence." - George Washington to James Madison 1789. Good idea, by
George. 
      


After much argument, Congress passed a bill proposed by Treasury Secretary
Alexander Hamilton. This bill established the First Bank of the United States,
tenured by a charter of 20 years, and set to expire in 1811.
Despite objections from several of our founding fathers, the "First Bank of the
United States" was chartered for $10 million, mainly to “effectively distribute the
cost of the revolution proportionately throughout all of the states.”

The U.S. government chipped-in $2 million to start up the bank and the charter
bankers, who were supposed to put up an additional $8 million, simply used the
magic of fractional reserve lending and had their new bank, loan themselves their
startup money. They actually used none of their own funds and ended up with
control of our nation’s finances. Bankers are just so darn clever.

Over the first 5 years, the government borrowed $8.2 million of newly issued
money and prices rose by 72%. Jefferson, commenting on this inflation wrote, “I
wish it were possible to obtain a single amendment to our Constitution – taking
from the federal government their power of borrowing.” "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." - James Madison.

In 1811, a bill was put forth in Congress to renew the Banks charter. The
Legislators of Pennsylvania and Virginia passed Resolutions asking Congress to
veto the bill. Their chief complaint was that 70 percent of the bank's stock was
held by foreign (British) interests, which would have sent millions of dollars
annually to England had the charter been renewed. English Banker, Nathan
Rothschild made the following revealing statement, “Either the application for
renewal of the charter is granted, or the United States will find itself involved in a
most disastrous war.” The renewal bill passed by a single vote in the House and
was deadlocked in the Senate. President James Madison, a staunch opponent of
the bank, sent Vice-President, George Clinton (No, not the Funkadelic guy) to
break a tie in the Senate and killed the bank. As promised by Nathan Rothschild,
thousands died when the British attacked America in the War of 1812.
Fortunately, the British were still busy fighting Napoleon and were unable to
mount much of an assault. After burning Washington D.C. in 1814, the British
went home.

So, who was this Nathan Rothschild that he would have both the temerity to
threaten the United States of America and then have the clout to carry out that
threat? We need to take a short side trip to mid 1700s Frankfurt, Germany. In
that city lived a gold merchant named Mayer Amschel Bauer who had a large red
shield on the front of his shop. His customers started calling him “Rothschild,”
German for “Red Shield,” and the name stuck. In those days, names were not so
“fixed” as they are now. People often took the name of their business as a family
name; hence, we have a lot of Smiths, Bakers, Clarks, Millers, Coopers, Farmers,
Fletchers, Wagners, etc. running around today. So it was with the Rothschilds.

Mayer had five sons and he gave them all substantial sums of money with which
to start their adult lives. They all entered the banking field and soon ran the
central banks in Germany, Austria, Italy, France, and England. Nathan eventually
gained controlling interest in the Bank of England. Benjamin Disraeli, Prime
Minister of England, wrote of Nathan Rothschild: “He is the lord and master of the
money markets of the world, and of course virtually lord and master of
everything else.” William Gladstone, Prime Minister of England stated in 1852,
“From the time I took office as Chancellor of the Exchequer, I began to learn that
the State held, in the face of the Bank and the City, an essentially false position
as to finance. The Government itself was not to be a substantive power, but was
to leave the Money Power supreme and unquestioned." Two Prime Ministers
acknowledge the Bank of England’s Nathan Rothschild – as the supreme power in
England. In 1790, Mayer Amschel Rothschild wrote, “Permit me to issue and
control the money of a nation and I care not who makes its laws.” Son, Nathan
Rothschild wrote: "I care not what puppet is placed on the throne of England to
rule the Empire. The man who controls Britain's money supply controls the British
Empire and I control the British money supply." How sweet. Like father, like
son.

Mayer Bauer (Rothschild) and family shared a house with another banking family
in Frankfurt, their close friends, the Schiffs. The Schiffs had three sons and they
too all entered the banking field. Two brothers stayed in Germany and one,
Jacob Schiff came to the U.S. to seek fame and fortune. A full explanation of the
Rothschilds would require another 50 pages and will have to wait for another
day. Jacob Schiff will pop up a little later in this story.

The charter for a new central bank, The Second Bank of the United States, was
passed in 1816, five years after the first bank expired. Although an avowed
enemy of central banking, President Madison needed a way to stabilize the
currency. Unfortunately, some very bad bankers looted the Baltimore branch of
the Second Bank. The branch went into receivership and the whole central
banking system was close to bankruptcy. The Second Bank was forced to reduce
the number of notes and loans issued to save it from collapse. The monetary
contraction was referred to as “The Panic of 1819” and the resultant depression
lasted five years.

In 1832, Andrew Jackson, running for a second term, took his campaign on the
road talking directly to the American people about the central bank scam. "It is
not our own citizens only who are to receive the bounty of our government. More
than 8 Million (shares of) the stock of this bank are held by foreigners... Is there
no danger to our liberty and independence in a bank that in its nature has so little
to bond it to our country? Controlling our currencies, receiving our public
moneys, and holding thousands of our citizens in dependence ... would be more
formidable and dangerous than a military power of the enemy. If government
would confine itself to equal protection, and as Heaven does its rains, shower it's
favor alike on the high and the low, the rich and the poor, it would be an
unqualified blessing. In the act before me there seems to be a wide and
unnecessary departure from these just principles." – President Andrew Jackson.
The foreign banker controlling the Second Bank of the United States was Baron
James de Rothschild of Paris.

Old Hickory’s campaign slogan was short and to the point: "JACKSON and NO
BANK!" In 1832, Jackson ordered the withdrawal of government deposits from
the Second Bank and vetoed its early re-chartering. Banker Henry Clews, in his
book, Twenty-eight Years in Wall Street (1888), wrote that not only did President
Jackson withdraw government funds from the Second Bank of the United States,
but he deposited these funds, about $10 million, into state banks. The result was
that the country began to enjoy great prosperity. This sudden flow of cash caused
an immediate expansion of the national economy, and the government paid off
the entire national debt. Jackson told the central bankers: “Gentlemen, I have
had men watching you for a long time and I am convinced that you have used the
funds of the bank to speculate in the breadstuffs of the country. When you won,
you divided the profits amongst you, and when you lost, you charged it to the
bank. You tell me that if I take the deposits from the bank and annul its charter I
shall ruin ten thousand families. That may be a true, gentleman, but that is your
sin! Should I let you go on, you will ruin fifty thousand families and that would
be my sin! You are a den of vipers and thieves. I have determined to rout you
out and by the Eternal God, I will rout you out!” Does this remind you of our
current financial situation – except of course, for the words and deeds of our
president? 
    


The president of the Second Bank, Nicholas Biddle, was quite candid about the
power and intention of the bank when he openly threatened to cause a
depression if the bank was not re-chartered. "This worthy President thinks that
because he has scalped Indians and imprisoned judges, he is to have his way
with the bank. He is mistaken." … "Nothing but widespread suffering will produce
any effect on Congress... Our only safety is in pursuing a steady course of firm
restriction - and I have no doubt that such a course will ultimately lead to
restoration of the currency and the re-charter of the bank." - Nicholas Biddle,
1836. That’s right. By calling in existing loans and refusing to issue new loans a
monetary collapse ensued and then a massive depression with bankruptcies,
foreclosures, and rampant unemployment. Of course, Biddle blamed everything
on Jackson. Congress, in what was called the “Panic” session, officially
“censured” Jackson. However, Biddle, boasting in public about creating the
depression, had been overheard by reporters. Soon the tide of public opinion
turned. Jackson was re-elected and in 1836 when its charter ran out, the Second
Bank ceased to function.

 Henry Clews wrote in Twenty-Eight Years in Wall Street, "The Panic of 1837 was
aggravated by the Bank of England when it in one day threw out all the paper
connected with the United States.” The Bank of England is of course, Nathan
Mayer Rothschild. Why did he "throw out" all paper connected with the United
States, that is, refuse to accept any securities, bonds or other financial paper
based in the United States? Acting in concert with his American agent, Biddle,
he wanted to create a contraction of credit to depress the U.S. economy and force
the continuation of “his family’s” Second Bank of the United States. The House of
Representatives tried to investigate the cause of the depression and subpoenaed
Nicholas Biddle. Biddle stonewalled them, denied them information concerning
bribe money given to congressmen prior to the re-charter vote and refused to
testify before the committee. Biddle died shortly thereafter, taking his secrets to
the grave. On January 8, 1835, Jackson paid off the national debt, the only
president to do so.

"If the American people only understood the rank injustice of our money and
banking system - there would be a revolution before morning...” Andrew
Jackson. When asked what he felt was the greatest achievement of his career,
Jackson replied, "I killed the bank!" If Jackson were alive today and knew his
face was prominently displayed on our current central bank’s $20 Federal Reserve
Note, he would no doubt say, “Hey, I’m alive! Let me out of this box!” (Sorry)

                                  The Civil War

According to one conspiracy theorist, "The division of the United States into
federations of equal force was decided long before the Civil War by the high
financial powers of Europe. These bankers were afraid that the US, if they
remained as one block, and as one nation, would attain economic and financial
independence, which would upset their financial domination over the world." -
Otto von Bismarck, Chancellor of Germany – 1876. “Propaganda pushed the
issue of slavery to the fore but the actual purpose behind the war... was to drive
both sides to accept the same money system Rothschild had fastened on England
and the Continent... to bleed the vast productivity of the whole American People.”
- William G. Simpson, “Which Way Western Man.”

At the onset of the Civil War, Lincoln, realizing he needed money to finance the
war, went with his Secretary of the Treasury, Salmon P. Chase, to New York
City. There, the patriotic bankers offered loans at 24% to 36% interest per year.
Lincoln politely declined their generous offer and decided instead to have the
treasury create its own money (as authorized by the Constitution). The U.S.
Treasury printed 450 million dollars worth of the new bills using green ink on the
back (hence, “greenbacks”). "The government should create, issue and circulate
all the currency and credit needed to satisfy the spending power of the
government and the buying power of consumers... The privilege of creating and
issuing money is not only the supreme prerogative of Government, but it is the
Government's greatest creative opportunity. By the adoption of these principles,
the long-felt want for a uniform medium will be satisfied. The taxpayers will be
saved immense sums of interest, discounts and exchanges. The financing of all
public enterprises, the maintenance of stable government and ordered progress,
and the conduct of the Treasury will become matters of practical administration.
The people can and will be furnished with a currency as safe as their own
government. Money will cease to be the master and become the servant of
humanity. Democracy will rise superior to the money power." - Abraham
Lincoln. This solution worked so well Lincoln was seriously considering adopting
this emergency measure as a permanent policy. This would have been great for
everyone except the international bankers. They wasted no time in expressing
their view in the London Times. "If this mischievous financial policy, which has its
origin in North America, shall become indurated down to a fixture, then that
Government will furnish its own money without cost. It will pay off debts and be
without debt. It will have all the money necessary to carry on its commerce. It
will become prosperous without precedent in the history of the world. The brains
and wealth of all countries will go to North America. That country must be
destroyed or it will destroy every monarchy on the globe." - Hazard Circular -
London Times 1865. Hey, that doesn’t sound too bad to me. Could it be that
these international bankers have a slightly different agenda than you and me?

By 1863, Lincoln needed more money to win the war. Seeing to it that the
president could not get the congressional authority to issue more greenbacks, the
bankers proposed the National Bank Act. The Act passed and from this point on
the entire US money supply would be created out of debt. Bankers would buy
U.S. government bonds with money they created by issuing bank notes. This is
essentially the same system we have today with the Federal Reserve. The U.S.
Treasury issues Bonds, Notes, and Bills and the ‘Fed” buys them by simply
printing money. These bonds, notes, and bills are now national debt and the
taxpayers (you and I) get to pay the bankers unending interest on it. Remember
that this debt was created by the bankers simply cranking the handle on their
printing press, but the interest we pay them every year in taxes comes from our
own hard work. “I have never yet had anyone who could, through logic and
reason, justify the federal government borrowing the use of its own money.” -
Wright Patman, Chair, House Committee on Banking and Currency.

“The study of money, above all other fields in economics, is one in which
complexity is used to disguise truth or to evade truth, not reveal it". – John
Kenneth Galbraith, economist. "The few who can understand the system will
either be so interested in its profits, or so dependent on its favors, that there will
be no opposition from that class, while on the other hand, the great body of the
people, mentally incapable of comprehending the tremendous advantages that
capital derives from the system, will bear its burdens without complaint and
perhaps without even suspecting that the system is inimical to their interests." -
John Sherman, from a letter sent in 1863 to New York Bankers, Morton, and
Gould, in support of the then proposed National Banking Act.

John Sherman was right. For the last one hundred and forty-five years, we’ve
been so stupid that we couldn’t figure out that this system was set up against us
to benefit a few wealthy bankers. He’s literally laughing at us from the grave. If
I were this guy, I’d have that line on my tombstone so that everyone walking by
would know I was smarter than them. Remember, the monetary system he was
writing about in 1863 is almost exactly the same as what we have right now.

Salmon P. Chase, Lincoln’s Secretary of the Treasury, later regretted his
involvement in the National Banking Act: “My agency in promoting the passage of
the National Banking Act was the greatest financial mistake in my life. It has
built up a monopoly which affects every interest in the country.” It still does to
this day. "The Money Power of the country will endeavor to prolong its reign by
working upon the prejudices of the people, until the wealth is aggregated in a few
hands and the Republic is destroyed. I feel at this moment, more anxiety for the
safety of my country than ever before, even in the midst of war." -Abraham
Lincoln, in a letter written to William Elkin just after the passage of the National
Banking Act of 1863. Shortly before he was assassinated, Lincoln made the
following statement: "The money powers prey upon the nation in times of peace
and conspire against it in times of adversity. It is more despotic than a monarch,
more insolent than autocracy and more selfish than a bureaucracy. It denounces,
as public enemies, all who question its methods or throw light upon its crimes. I
have two great enemies, the Southern Army in front of me and the bankers in the
rear. Of the two, the one at the rear is my greatest foe." Abraham Lincoln, “It
denounces as public enemies, all who question its methods or throw light upon its
crimes.” As it did in the 1860’s, so it does today.

Lincoln had plans to reverse the National Bank Act after the election.
Unfortunately, on April 14th, 41 days after his re-election and five days after
Lee’s surrender, Lincoln was shot at Ford’s theater. Many people believe that
John Wilkes Booth was an agent of Nathan Rothschild, who did not want the U.S.
Treasury to print its own money. Allegations that international bankers were
responsible for President Lincoln's assassination have been rampant since that
day. In 1934, in the Canadian House of Commons, Member of Parliament, Gerald
G. McGeer, stated he had obtained evidence deleted from the public record that
showed John Wilkes Booth was a mercenary working for the international
bankers. From his speech as reported in the Vancouver Sun, May 2, 1934:
"Abraham Lincoln, the murdered emancipator of the slaves, was assassinated
through the machinations of a group representative of the International Bankers,
who feared the United States President's National Credit ambitions. There was
only one group in the world at that time who had any reason to desire the death
of Lincoln. They were the men opposed to his national currency program and
who had fought him throughout the whole Civil War on his policy of Greenback
currency."

Gerald G. McGeer also stated that Lincoln's assassination was not solely because
the International Bankers wanted to re-establish a central bank in America, but
also because they wanted to base America's currency on gold, which they
controlled. They wanted to put America’s currency on a Gold Standard and this
was in direct opposition to President Lincoln's policy of issuing Greenbacks, based
solely on the good faith and credit of the United States. Gerald G. McGeer states,
"They were the men interested in the establishment of the Gold Standard and the
right of the bankers to manage the currency and credit of every nation in the
world. With Lincoln out of the way, they were able to proceed with that plan and
did proceed with it in the United States. Within 8 years after Lincoln's
assassination, silver was demonetized and the Gold Standard system set up in
the United States." "Right after the Civil War there was considerable talk about
reviving Lincoln's brief experiment with the Constitutional monetary system. Had
not the European money-trust intervened, it would have no doubt become an
established institution." - W. Cleon Skousen

On April 12, 1866, Congress passed the Contraction Act, making the treasury
retire most of Lincoln's greenbacks. Using the Contraction Act to lower the
amount of money in circulation, it went from $1.8 billion in circulation in 1866, to
$1.3 billion in 1867, to $0.6 billion in 1876, to $0.4 billion only ten years later.
Most people believe the economists when they tell us that recessions and
depressions are part of the natural business cycle, but in truth, the money supply
is controlled as it always has been, by a small group of anonymous bankers for
their own benefit. “I know of no severe depression, in any country or any time,
that was not accompanied by a sharp decline in the stock of money and equally of
no sharp decline in the stock of money that was not accompanied by a severe
depression.” – Milton Friedman, economist.

By 1872 with the American public feeling the money squeeze, the Bank of
England (Rothschild), sent Ernest Seyd to America with about $500,000 to bribe
congressmen into demonetizing silver. Ernest drafted the legislation himself,
which came into law with the passing of the Coinage Act, effectively stopping the
minting of silver that year and, again contracting the money supply. As Ernest
Seyd said, “I went to America in the winter of 1872-73, authorized to secure, if I
could, the passage of a bill demonetizing silver. It was in the interest of those I
represented, the governors of the Bank of England, to have it done.” By 1873,
gold coins were the only form of coin money. In 1875 Lord Acton, Lord Chief
Justice of England stated: “The issue which has swept down the centuries and
which will have to be fought sooner or later is the People vs. the Banks.” Within
three years of the passage of the Coinage Act, 30% of the work force was
unemployed and American people longed for the days of silver backed money and
greenbacks. This period was known as the “Money Famine.”

Congress set up the Silver Commission to study the problem and, in their report,
outlined this history: "The disaster of the Dark Ages was caused by decreasing
money and falling prices... Without money, civilization could not have had a
beginning, and with a diminishing supply, it must languish and unless relieved,
finally perish. At the Christian era, the metallic money of the Roman Empire
amounted to $1,800 million. By the end of the fifteenth century, it had shrunk to
less than $200 million. History records no other such disastrous transition as that
from the Roman Empire to the Dark Ages..." I have no idea where they got their
figures, but it’s an interesting story, nonetheless.

The United States Silver Commission was aware of the problems being caused by
the constrictive money supply, but Congress took no action. In 1877, riots broke
out all over the country. The bank's response was to campaign against the idea
that greenbacks should be re-issued. The American Bankers Association wrote:
"It is advisable to do all in your power to sustain such prominent daily and weekly
newspapers, especially the Agricultural and Religious Press, as will oppose the
greenback issue of paper money and that you will also withhold patronage from
all applicants who are not willing to oppose the government issue of money. To
repeal the Act creating bank notes, or to restore to circulation the government
issue of money will be to provide the people with money and will therefore
seriously affect our individual profits as bankers and lenders. See your
congressman at once and engage him to support our interest that we may control
legislation", James Buel, Secretary, American Bankers Association. Once again,
we find that bankers are more than willing to see our nation and its people suffer
to make a profit.

With bankers, 'less is more' and every need is an opportunity to exploit. James
Garfield became President in 1881 with a firm grasp of where the problem lay.
"Whoever controls the money of a nation, controls that nation." and "Whosoever
controls the volume of money in any country is absolute master of all industry
and commerce... And when you realize that the entire system is very easily
controlled, one way or another, by a few powerful men at the top, you will not
have to be told how periods of inflation and depression originate", James Garfield
1881. Within weeks of his statement, President Garfield was assassinated (some
say, by his doctors).

"Fleecing of the flock" is the term bankers use for the process of booms and
depressions which make it possible for them to repossess property at a fraction of
its worth. By providing money at low interest rates, people naturally take
advantage by buying homes, farms, and businesses. Then by contracting the
money supply, the bankers are able to foreclose on these properties when the
owners are suddenly unable to make their payments. Recall Thomas Jefferson’s
warning about inflation and deflation. In 1891 the American Bankers Association
was planning a major fleecing, three years in the future! "On Sept 1st, 1894, we
will not renew our loans under any consideration. On Sept 1st, we will demand
our money. We will foreclose and become mortgagees in possession. We can
take two-thirds of the farms west of the Mississippi and thousands of them east of
the Mississippi as well, at our own price... Then the farmers will become tenants
as in England...", 1891, letter from the American Bankers Association read into
the Congressional Record of April 29, 1913. The letter speaks for itself, but take
a moment to reread and reflect upon it. Think about all the families affected by
such a dastardly plan. It’s obvious to me that the moral makeup of these people
is substantially different from us normals. If you don’t think so, you may want to
consider a career in banking.

Since gold was scarce and silver and greenbacks were out of the equation, the
bankers, acting in unison, effectively squeezed the nation’s money supply. In
1896, Democrat William Jennings Bryan ran for president with a “Free Silver”
platform. In his acceptance speech, Bryan said, “We will answer their demand for
a gold standard by saying to them: You shall not press down upon the brow of
labor this crown of thorns, you shall not crucify mankind upon a cross of gold.”
The bankers and industrialists supported the gold standard and the Republican
nominee, William McKinley. Many manufacturers told their employees that if
Bryan were elected, all factories would close and there would be no work for
anyone. This was a very serious threat to the workers in depressed times.
McKinley won.

                     The Panic of 1907 – The Trap is Set.

Early in 1907, banker Jacob Schiff of Kuhn, Loeb & Co. warned in a speech to the
New York Chamber of Commerce, "Unless we have a central bank with adequate
control of credit resources, this country is going to undergo the most severe and
far reaching money panic in its history." Then, as if by magic, the Panic of
1907!

The Panic of 1907, also known as the “Bankers' Panic,” caused stocks to fall 50%
from the previous year. The panic eventually spread throughout the nation and
many banks and businesses fell into bankruptcy. Primary causes include a
retraction of market liquidity by a number of New York City banks (surprise!) and
a loss of confidence among depositors. Runs on banks occur when people feel
they won’t be able to retrieve their funds when they want and in 1907, there was
no F.D.I.C. to insure deposits or central bank to inject liquidity into the system.

   


The Federal Reserve Bank of Minneapolis attributed the Panic of 1907 to financial
manipulation from the banking establishment. "If Knickerbocker Trust would
falter, then Congress and the public would lose faith in all trust companies and
banks would stand to gain, the bankers reasoned." Major banks, including J.P.
Morgan (Rothschild) and Chase (Rockefeller), launched an all-out attack on the
Knickerbocker Trust. They sold off assets in their competitor and planted stories
about bad loans in their newspapers. The run on Knickerbocker Trust turned into
a panic and, just like today, the Federal Government came to the rescue of the
privately owned ‘National Banks’.
During the depositors 'run' on the Knickerbocker Trust, J.P. Morgan and James
Stillman of First National City Bank acted as a ‘central bank’, providing liquidity to
stop the bank run. President Theodore Roosevelt provided Morgan with $25
million in government funds to control the panic. Morgan, acting as a one-man
central bank, decided which firms failed and which firms survived. His, of course,
survived.

Although Morgan was briefly seen as a hero, widespread fears of his enormous
wealth and influence soon eroded this view. The trust companies that were
growing rivals to traditional banks (such as Morgan’s) were badly damaged. Some
analysts believed that the panic was engineered to damage confidence in trust
companies so that banks would benefit. The chair of the House Committee on
Banking and Currency, Arsène Pujo convened a special committee to investigate
what had come to be called, the ‘Money Trust’, the virtual monopoly of Morgan
and New York's other powerful bankers. The committee issued a scathing report
on the banking trade and found that the officers of J.P. Morgan & Co. also sat on
the boards of directors of 112 corporations with a market capitalization of $22.5
billion (the total capitalization of the New York Stock Exchange was then
estimated at $26.5 billion). The final report of the committee stated: “Your
committee is satisfied from the proofs submitted, even in the absence of data
from the banks, that there is an established and well defined identity and
community of interest between a few leaders of finance... which has resulted in
great and rapidly growing concentration of the control of money and credit in the
hands of these few men... and that a small group of men and their partners and
associates have now further strengthened their hold upon the resources of these
institutions by acquiring large stock holdings therein, by representation on their
boards and through valuable patronage, we begin to realize something of the
extent to which this practical and effective domination and control over our
greatest financial, railroad and industrial corporations has developed, largely
within the past five years, and that it is fraught with peril to the welfare of the
country.” The Pujo Committee acknowledged that America, contrary to the
tenets of her Free Enterprise Credo, had come under the control of a few powerful
– interconnected – bankers and industrialists.

President Teddy Roosevelt added the newspapers to this list when he said, “These
international bankers and Rockefeller-Standard Oil interests control the majority
of newspapers and the columns of these papers to club into submission or drive
out of public office officials who refuse to do the bidding of the powerful corrupt
cliques which compose the invisible government.”

“The warning of Theodore Roosevelt has much timeliness today, for the real
menace of our republic is this invisible government which like a giant octopus
sprawls its slimy length over City, State, and nation... It seizes in its long and
powerful tentacles our executive officers, our legislative bodies, our schools, our
courts, our newspapers, and every agency created for the public protection... To
depart from mere generalizations, let me say that at the head of this octopus are
the Rockefeller-Standard Oil interest and a small group of powerful banking
houses generally referred to as the international bankers. The little coterie of
powerful international bankers virtually run the United States government for
their own selfish purposes. They practically control both parties, write political
platforms, make cats paws of party leaders, use the leading men of private
organizations, and resort to every device, to place in nomination for high public
office only such candidates as will be amenable to the dictates of corrupt big
business... These international bankers and Rockefeller-Standard Oil interests
control the majority of newspapers and magazines in this country" - John Hylan,
Mayor of New York, March 27, 1927, "Three hundred men, all of whom know one
another, direct the economic destiny of Europe and choose their successors from
among themselves," Walter Rathenau, who in 1909 controlled German General
Electric. “Fifty men

have run America and that's a high figure," Joseph Kennedy, July 26, 1936, New
York Times.

It’s interesting to note that, “... J.P. Morgan, had only $19 million in securities in
his estate when he died in 1913 and securities handled by Morgan were actually
owned by his employer, Rothschild." - New York Times, April 1, 1915. Morgan, it
seems, far from being the dominant force in American industry, was acting
merely as an ‘employee’ of the Rothschilds. Just how powerful are these
Rothschilds? It has been estimated that, by the start of the 20th century, they
controlled about half of the world’s wealth. Of course, nobody will ever really
know.

President Theodore Roosevelt had signed into law a bill creating the National
Monetary Commission in 1908, after the Panic of 1907 had resulted in a public
outcry that the nation’s monetary system be stabilized. One purpose of The
National Monetary Commission was to propose legislation to break the grip of the
‘Money Trust’ and Senator Nelson Aldrich was chosen as chairman of that
committee. Curiously, Nelson Aldrich was a very close associate of J. P. Morgan,
the father-in-law of John D. Rockefeller, Jr., (and grandfather to Nelson Aldrich
Rockefeller and his brothers). Aldrich led the members of the Commission on a
two-year tour of the central banks of Europe, spending some three hundred
thousand dollars of taxpayer money. 
     


On the night of November 22, 1910, Senator Aldrich and a small delegation
representing some of the nation’s leading financiers slipped anonymously, one by
one into Aldrich’s private rail car at the Hoboken, New Jersey station and headed
south to the privately owned, Jekyll Island, Georgia. It is estimated that the
seven men who boarded Aldrich’s private rail car represented 1/4 of the wealth of
the entire world. Nelson Aldrich was the Republican ‘whip’ in the Senate,
Chairman of the National Monetary Commission, and business associate of J.P.
Morgan; Abraham Piatt Andrew, Assistant Secretary of the United States
Treasury; Frank A. Vanderlip, president of the National City Bank of New York,
the most powerful of the banks at that time, representing William Rockefeller and
the investment banking house of Kuhn, Loeb & Company; Henry P. Davison,
senior partner of J.P Morgan Company; Charles D. Norton, president of J.P.
Morgan's First National Bank of New York; Benjamin Strong, head of J.P.
Morgan's Bankers Trust Company (and, later, first head of the Federal Reserve
Bank); and Paul M. Warburg, a partner in Kuhn, Loeb & Company, a
representative of the Rothschild banking dynasty in England and France, brother
to Max Warburg who was head of the Warburg banking consortium in Germany
and the Netherlands. (By the way, Paul Warburg was the role model for “Daddy
Warbucks” of “Little Orphan Annie” fame and J.P. Morgan was the model for the
chubby little mustachioed banker in the Monopoly game).

The purpose of the Jekyll Island meeting was to formulate an agreement on the
structure and operation of a banking cartel. The goal of this cartel, as is true with
all cartels, was to maximize profits by minimizing competition between members,
to make it difficult for new competitors to enter the field, and to utilize the police
power of government to enforce the cartel agreement. These banking
competitors sat around a table of the Jekyll Island Clubhouse and devised the
Federal Reserve System to best suit their needs. Security was tight and the first
information regarding this meeting found its way into print in 1916. It appeared
in Leslie's Weekly, written by the financial reporter, B.C. Forbes, who later
founded Forbes Magazine. While interviewing Paul Warburg, Warburg told him
this story: “Picture a party of the nation's greatest bankers stealing out of New
York on a private railroad car under cover of darkness, stealthily heading
hundreds of miles South, embarking on a mysterious launch, sneaking on to an
island deserted by all but a few servants, living there a full week under such rigid
secrecy that the names of not one of them was once mentioned lest the servants
learn the identity and disclose to the world this strangest, most secret expedition
in the history of American finance. I am not romancing. I am giving to the world,
for the first time, the real story of how the famous Aldrich currency report, the
foundation of our new currency system, was written.” In 1930, Paul Warburg
wrote in his massive, 1750 page book, "The Federal Reserve System, Its Origin
and Growth”: "The results of the conference were entirely confidential. Even the
fact there had been a meeting was not permitted to become public." "Though
eighteen years have since gone by, I do not feel free to give a description of this
most interesting conference, concerning which, Senator Aldrich pledged all
participants to secrecy."

Another participant, Frank Vanderlip, wrote in an article that appeared in the
Saturday Evening Post on February 9, 1935: “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. 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.”

So, why all the secrecy? Vanderlip further wrote, “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.” Why would
Vanderlip state this? Because the expressed purpose of the bill was to break the
grip of the ‘Money Trust’ and it was written for and by the 'Money Trust’.
Competing bankers got together in secret to form a cartel insuring they would
always have the money they needed to run their businesses, stifle competition,
and bail themselves out whenever they made a mistake. Had the public known
that fact, there would have never been a Federal Reserve System. The fact that
the Federal Reserve System was formulated, not in the halls of Congress with
open debate and public news coverage, but on a small, private island, by a few of
the world’s wealthiest bankers, in complete secrecy, and designed to perpetuate
their wealth at the expense of the taxpayers, to me at least, makes this a
conspiracy... Not a conspiracy theory, a conspiracy fact.

“The participants in the Jekyll Island conference returned to New York to direct a
nationwide propaganda campaign in favor of the ‘Aldrich Plan’. Three of the
leading universities, Princeton, Harvard, and the University of Chicago, were used
as the rallying points for this propaganda and national banks had to contribute to
a fund of five million dollars to persuade the American public that this central
bank plan should be enacted into law by Congress. Woodrow Wilson, governor of
New Jersey and former president of Princeton University, was enlisted as a
spokesman for the Aldrich Plan. During the Panic of 1907, Wilson had declared,
"All this trouble could be averted if we appointed a committee of six or seven
public-spirited men like J.P. Morgan to handle the affairs of our country." -
Eustace Mullins, Secrets of the Federal Reserve. In 1912, Woodrow Wilson won
the Democratic Party’s nomination for President, and in his populist-friendly
acceptance speech, he warned against the ‘money trusts’, and advised "a
concentration of the control of credit...may at any time become infinitely
dangerous to free enterprise”.
But these were just words politicians use to get elected. Wilson was already
under the thumb of the bankers. By enticing Teddy Roosevelt to un-retire just
long enough to split the Republican vote, the bankers got their man into the
White House.

The first bill presented to Congress from the secret Jekyll Island meeting was
known as the ‘Aldrich Bill’ and was soon identified as supporting big banking
interests. It never passed. Representative Charles Lindbergh said, “The Aldrich
Plan is the Wall Street Plan. It is a broad challenge to the government by the
champion of the Money Trust. It means another panic, if necessary, to intimidate
the people. Aldrich, paid by the government to represent the people, proposes a
plan for the Trusts instead.” In 1911, the Aldrich Plan became part of the official
platform of the Republican Party but... “The Aldrich bill was condemned in the
(Democratic) platform... When Woodrow Wilson was nominated ... The men who
ruled the Democratic Party promised the people that if they were returned to
power there would be no central bank established here while they held the reins
of government. Thirteen months later, that promise was broken and the Wilson
administration, under the tutelage of those sinister Wall Street figures who stood
behind Colonel House, established, here in our free country the worm-eaten
monarchical institution of the ‘king’s bank’, to control us from the top downward,
and to shackle us from the cradle to the grave.” – House Banking Chairman, Rep.
Louis McFadden.

The ‘Aldrich bill’ was reworked by Paul Warburg and presented again in Congress
as the ‘Glass-Owen bill’. It was, in fact virtually the same in every important
detail. Both Vanderlip and Aldrich then publicly criticized the Owens-Glass bill in
an attempt to steer Congress and the public away from the truth. “Jekyll Island
planners Vanderlip and Aldrich spoke out venomously against Glass's bill, even
though entire sections were identical to the Aldrich Plan. It was clearly an effort
to garner public support for the Glass bill by the appearance of banker opposition
… The appearance of opposition by Wall Street was necessary.” William McAdoo,
Wilson's son-in-law who was appointed secretary of the Treasury, later revealed,
‘Bankers fought the . . . Federal Reserve Act with the tireless energy of men
fighting a forest fire. They said it was populistic, socialistic, half-baked,
destructive, infantile, badly conceived and unworkable. However, McAdoo said in
interviews with these bankers, “I perceived gradually, through all the haze and
smoke of controversy, that the banking world was not really as much opposed to
the bill as it pretended to be...” - Jim Marrs, “Rule by Secrecy”.

Warburg, the father of both bills, reassuring his paid friends in Congress said,
“Brushing aside the external differences affecting the ‘shells’, we find the ‘kernels’
of the two systems very closely resembling and related to each other.” “Although
the Aldrich Federal Reserve Plan was defeated when it bore the name Aldrich,
nevertheless its essential points were all contained in the plan that finally was
adopted.” – Frank Vanderlip.
Alfred Crozier, an attorney from Ohio testified before Congress just before
passage of the Glass-Owen bill, “The bill grants just what Wall Street and the big
banks for 25 years have been striving for, … private instead of public control of
currency. It does this as completely as the Aldrich bill. Both measures rob the
government and the people of all effective control over the public’s money, and
vest in the banks exclusively the dangerous power to make money among the
people scarce or plenty.”

"So the American people, who had suffered through the American Revolution, the
War of 1812, the battles between Andrew Jackson and the Second Bank of the
United States, the Civil War, the previous panics of 1873 and 1893, and now the
Panic of 1907, were finally conditioned to the point of accepting the solution
offered by those who had caused all of these events: the international bankers.
That solution was a central bank." - Ralph Epperson. Rep. Charles Lindbergh (R–
MN), commenting on the Federal Reserve Act: "This act establishes the most
gigantic trust on earth. When the President signs this bill, the invisible
government by the Monetary Power will be legalized. The people may not know it
immediately, but the day of reckoning is only a few years removed ... The worst
legislative crime of the ages is perpetrated by this banking bill."   “The bill as it
stands seems to me to open the way to a vast inflation of the currency. I had
hoped to support this bill, but I cannot vote for it because it seems to me to
contain features and to rest upon principles in the highest degree menacing to
our prosperity, to stability in business and to the general welfare of the people of
the United States.” - Senator Henry Cabot Lodge, December 17, 1913.

The Federal Reserve Act (Owen-Glass Act) had been shepherded through a
Congressional Conference Committee meeting scheduled for between 1:30 AM to
4:30 AM (when most members of Congress were asleep), on December 22, 1913.
The Act was then voted on and passed although many members of the body had
left for the Christmas holidays, reassured by Senate leadership that nothing
would be done until after the New Year. Most of the others who stayed behind
hadn't had time to read the bill or understand its contents. President Wilson,
under pressure from Bernard Baruch, signed the bill into law at 6:30 PM that very
same day. "I unwittingly ruined my country." – Woodrow Wilson.

By the way, we can all thank Senator Nelson Aldrich for co-authoring the bill that
established the Federal Income Tax, which was also ratified in 1913. I should
also let you know that almost all of your personal income tax goes to pay the
Federal Reserve interest on the money they create out of thin air. "100% of what
is collected is absorbed solely by interest on the Federal Debt ... all individual
income tax revenues are gone before one nickel is spent on the services
taxpayers expect from government." - Grace Commission report submitted to
President Ronald Reagan, January 15, 1984. And isn’t that nice to know. It
appears that the only reason the Federal Income Tax was created was so that we
working stiffs can pay international bankers hundreds of billions of dollars each
year for interest on nothing. Think about that when you pay your taxes each
year.

Was it just coincidence that the Federal Reserve System and the Income Tax
were created in the same year? Was 1913 just a particularly bad year for
Americans? The U.S. survived for 125 years without imposing an income tax on
her citizens. Why did it need one now? There are many conspiracy theories
surrounding the legitimacy of the Federal Income Tax and again, it would take
many additional pages to explain them here. Let me summarize them for you:
“Don’t argue, just pay your taxes. They have guns and can mess you up.” - Mike
Kirchubel, taxpayer.

So, did the Federal Reserve Act do what it was supposed to do? Did it reign in
the ‘Money Trust’ and interlocking directorates? Not by a long shot. If anything,
the Federal Reserve granted new powers to the National Banks by permitting
overseas operations and new types of banking services. The greatest gift to the
bankers was a virtually unlimited supply of government loans when they
experience liquidity problems - but these loans would only go to selected
institutions. “I never thought the Federal Reserve System would prove such a
failure.” - Senator Carter Glass (co-sponsor of the bill).

How does the Federal Reserve actually create money? When Congress needs
money and does not want to raise taxes, it goes to the Federal Reserve and asks
for the money – Let’s say $100 billion. The U.S. Treasury prints $100 billion of
new Treasury bonds and puts them up for sale. Usually about half of them are
sold to the Chinese, Saudis, banks, and little old ladies. The rest are bought by
the Federal Reserve Banks. The Federal Reserve Bank simply prints the money
or sends electronic digits from one computer to another to buy the bonds. "When
you or I write a check there must be sufficient funds in our account to cover that
check but when the Federal Reserve writes a check, it is creating money." -
Boston Federal Reserve Bank in a publication titled "Putting It Simply”. "We
make money the old fashioned way. We print it." – Art Rolnick, former Chief
Economist, Minneapolis Federal Reserve Bank.

The new money is spent by the government, enters the economy and everyone is
happy. The taxpayers don’t have any new taxes but the value of everyone’s
money is slightly diluted and thus devalued. Again and again and again and
again and again. This process causes what we refer to as ‘inflation’, noting the
obvious, that the price of everything seems to go up. What is really happening is
that as more and more dollars enter the economy and chase the same amount of
goods and services, their value declines. Inflation is a form of regressive tax,
affecting the poor and those on fixed incomes more than the rich. In 1919, John
Maynard Keynes, wrote in his book, The Economic Consequences of Peace, "Lenin
is to have declared that the best way to destroy the capitalist system was to
debauch the currency... By a continuing process of inflation, governments can
confiscate secretly and unobserved, an important part of the wealth of their
citizens”. And later: "There is no subtler, no surer means of overturning the
existing basis of society than to debauch the currency. The process engages all
the hidden forces of economic law on the side of destruction and does it in a
manner which not one man in a million is able to diagnose." - John Maynard
Keynes, economist. 
     


In 1942, the Germans initiated Operation Bernhardt, a scheme that counterfeited
132 million British Pounds. These notes were meant to destroy the British
economy by flooding it with counterfeit money. It’s easy to recognize that this
‘economic warfare’ operation was obviously an act of war. However, today, the
Federal Reserve is engaged in the same scheme, creating trillions of dollars and
flooding the U.S. money supply. This time, the target is the United States of
America. If we discovered that the actions of the Federal Reserve were being
controlled by Osama bin Laden (Google: “Tim Ossman”), we would recognize
them immediately as acts of war. Inflation robs America’s businesses, savings
accounts, retirement funds, jobs, and pensions, making it senseless to try to save
money. How can any of that be good for our country?

Louis McFadden, Chairman of the House Banking Committee called the Federal
Reserve Banks, “A super-state controlled by international bankers and
international industrialists acting together to enslave the world for their own
pleasure”. Another chairman of the House Banking Committee in the 1960s,
Wright Patman (D–TX), said, “In the United States today we have in effect two
governments... We have the duly constituted Government ... Then we have the
independent, uncontrolled and uncoordinated government in the Federal Reserve
System, operating the money powers which are reserved to Congress by the
Constitution”. Representative Charles A Lindbergh (1914): “The Federal Reserve
System can cause the pendulum of a rising and falling market to swing gently
back and forth by slight changes in the discount rate, or cause violent fluctuations
by a greater rate variation, and in either case it will possess inside information as
to financial conditions and advance knowledge of the coming change, either up or
down. This is the strongest, most dangerous advantage ever placed in the hands
of a special privilege class by any Government that ever existed. The system is
private, conducted for the sole purpose of obtaining the greatest possible profits
from the use of other people's money. They know in advance, when to create
panics to their advantage. They also know when to stop panic. Inflation and
deflation work equally well for them when they control finance."

"It is well that the people of the nation do not understand our banking and
monetary system, for if they did, I believe there would be a revolution before
tomorrow morning." - Henry Ford (Echoing Andrew Jackson’s statement of
almost a hundred years earlier.)
                                WORLD WAR I

The Germans borrowed money from the German Rothschild’s Bank, the British
from the British Rothschild’s Bank, and the French from the French Rothschild’s
Bank. The American Rothschild agent, J.P. Morgan was a sales agent for war
materials and six months into the war, he was spending $10 million a day. The
Rockefeller's and the head of President Wilson's War Industries Board, Bernard
Baruch each made some 200 million dollars while American families contributed
both the money and blood of their sons.

During World War I, Woodrow Wilson turned the vast powers of the United States
over to three of his campaign backers, Federal Reserve author, Paul Warburg,
Bernard Baruch and Eugene Meyer (you would think that these wealthy bankers
would have supported the Republican candidate, who openly sponsored the
establishment of a central bank). Baruch was appointed head of the War
Industries Board, with life and death powers over every factory in the United
States; Eugene Meyer was appointed head of the War Finance Corporation, in
charge of the loan program that financed the war; and Paul Warburg ran the
nation’s banking system.

Our British allies viewed the placement of Paul Warburg as head of the banking
consortium with foreboding because his banker brother, Max Warburg, was the
head of the German Imperial Intelligence. In June 1918, Paul Warburg wrote
Woodrow Wilson, "I have two brothers in Germany who are bankers. They
naturally now serve their country to their utmost ability, as I serve mine”.

War uses up more materials faster than anything else. In war, expensive
equipment doesn't wear out, it gets blown up. Baruch spent the American
taxpayer’s money at the rate of ten billion dollars a year, and was the dominant
member of the Munitions Price-Fixing Committee, setting the prices at which the
Government bought war materials. It would be naive to presume that the
purchase orders did not go to corporations in which he and his associates had an
interest. Some members of Congress were curious about Baruch’s qualifications
to exercise life and death powers over American industry in time of war.
Everyone knew he had no manufacturing experience and when he was called
before a Congressional Committee, Bernard Baruch stated that his profession was
‘Speculator’. A Wall Street gambler was Czar of all American Industry. Again,
he made $200 million during the War. 
      


Congressional investigations of Eugene Meyer’s leadership of the War Finance
Corporation revealed that each night, the books were being altered before being
brought in for the next day’s investigation. Louis McFadden, Chairman of the
House Banking and Currency Committee, figured in two investigations of Meyer,
in 1925, and again in 1930, when Meyer was confirmed as a Governor of the
Federal Reserve. 
   

Representative McFadden: “Mr. Meyer is a brother-in-law of George Blumenthal,
a member of the firm of J.P. Morgan Company, which represents the Rothschild
interests. He also is a liaison officer between the French Government and J.P.
Morgan. Edmund Platt, who had eight years to go on a term of ten years as
Governor of the Federal Reserve Board, resigned to make room for Mr. Meyer.
Platt was given a Vice-Presidency of Marine Midland Corporation by Meyer's
brother-in-law, Alfred A. Cook. Eugene Meyer, Jr. as head of the War Finance
Corporation, engaged in the placing of two billion dollars in Government
securities, placing many of those orders first with the banking house now located
at 14 Wall Street in the name of Eugene Meyer, Jr. Mr. Meyer is now a large
stockholder in the Allied Chemical Corporation. I call your attention to House
Report No. 1635, 68th Congress, 2nd Session, which reveals that at least twenty-
four million dollars in bonds were duplicated. Ten billion dollars worth of bonds
surreptitiously destroyed. Our committee on Banking and Currency found the
records of the War Finance Corporation under Eugene Meyer, Jr. extremely faulty.
While the books were being brought before our committee by the people who
were custodians of them and taken back to the Treasury at night, the committee
discovered that alterations were being made in the permanent records." That’s
right; he made copies of bonds and coupons and cashed them in. It’s hard to
figure out just how that could have been done in “error”. This record of “public
service” did not prevent Eugene Meyer from continuing to serve the American
people on the Federal Reserve Board, as Chairman of the Reconstruction Finance
Corporation, and later, as head of the World Bank.

These investigations may explain why, at the end of World War One, Eugene
Meyer was able to buy control of Allied Chemical and The Washington Post
(Katherine Graham was his daughter). 
    


On February 12, 1917, The New York Times reported, "The five members of the
Federal Reserve Board were impeached on the floor of the House by Rep. Charles
A. Lindbergh, Republican member of the House Banking and Currency
Committee. According to Mr. Lindbergh, ‘the conspiracy began in’ 1906 when the
late J.P. Morgan, Paul M. Warburg, a present member of the Federal Reserve
Board, the National City Bank and other banking firms ‘conspired’ to obtain
currency legislation in the interest of big business and the appointment of a
special board to administer such a law, in order to create industrial slaves of the
masses, the aforesaid conspirators did conspire and are now conspiring to have
the Federal Reserve Board administered so as to enable the conspirators to
coordinate all kinds of big business and to keep themselves in control of big
business in order to amalgamate all the trusts into one great trust in restraint and
control of trade and commerce." The House did not act on his impeachment
resolution.

At the end of his term in the White House, Woodrow Wilson said, in regret: "We
have come to be one of the worst ruled, one of the most completely controlled
governments in the civilized world - no longer a government of free opinion, no
longer a government by... a vote of the majority, but a government by the
opinion and duress of a small group of dominant men.” “Some of the biggest
men in the United States, in the field of commerce and manufacture, are afraid of
something. They know that there is a power somewhere so organized, so subtle,
so watchful, so interlocked, so complete, so pervasive, that they had better not
speak above their breath when they speak in condemnation of it."

                            The Russian Revolution

Jacob Schiff, partner in Kuhn, Loeb, and Co., helped plan and finance the Russian
Revolution. Leon Trotsky (whose actual name was Lev Davidovich Bronstein) left
New York on March 27, 1917 aboard the S. S. Kristianiafjord, which had been
chartered by Jacob Schiff along with his brother-in-law, Paul Warburg. On April
3rd, Trotsky was arrested by Canadian authorities in Halifax, Nova Scotia as a
‘German prisoner of war’. Both the British and American governments urged
them to let him go. Wilson said that if they didn't comply, the U.S. would not
enter the War. Trotsky was released, given an American passport, a British
transport visa, and a Russian entry permit. It is obvious that Wilson knew what
was going on, because accompanying Trotsky was Charles Crane of the
Westinghouse Company, who was also the Chairman of the Democratic Finance
Committee. The U.S. entered World War I three days later. Jennings C. Wise, in
“Woodrow Wilson”: “Disciple of Revolution”, states, "Historians must never forget
that Woodrow Wilson, despite the efforts of the British police, made it possible for
Leon Trotsky to enter Russia with an American passport." The resultant
Revolution took Russia out of the War and allowed Germany to concentrate more
manpower on the western front, against British and American forces.

Russian General Arsène DeGoulevitch wrote in “Czarism and the Revolution” that,
“The main purveyors of funds for the revolution, however, were neither crackpot
Russian millionaires nor armed bandits of Lenin. The 'real' money primarily came
from certain British and American circles which for a long time past had lent their
support to the Russian revolutionary cause...” and that the revolution was
"...engineered by the English, more precisely by Sir George Buchanan and Lord
Alfred Milner (of the Round Table) ... In private conversations I have been told
that over 21 million rubles were spent by Lord Milner in financing the Russian
Revolution." (There will be much more on Milner and the “Round Table” in later
blogs) Actually, Jacob Schiff contributed $20 million to the revolution, the
Rockefellers gave $1 million, Federal Reserve Bank Director, William Boyce
Thompson gave a million, and so did the President of Rockefeller’s Chase National
Bank, Albert H. Wiggin.

"The course of Russian history has, indeed, been greatly affected by the
operations of international bankers... The Soviet Government has been given
United States Treasury funds by the Federal Reserve Board... acting through the
Chase Bank. ... England has drawn money from us through the Federal Reserve
Banks and has re-lent it at high rates of interest to the Soviet Government... The
Dnieperstory Dam was built with funds unlawfully taken from the United States
Treasury by the corrupt and dishonest Federal Reserve Board and the Federal
Reserve Banks." Rep. Louis T. McFadden (R-PA) Chairman of the House Banking
and Currency Committee.

In 1944, Mr. Henry Morgenthau Jr., Mr. Roosevelt's Secretary of the Treasury and
his Assistant Secretary, Mr. Harry Dexter White (a Soviet agent) ordered the
shipment to the Soviet Government of United States Treasury plates, special ink,
and currency paper (also supplies of uranium and heavy water). By the end of
1946, the United States Military Government in Germany found it had redeemed
about $250,000,000 in counterfeit notes (One estimate was $380 million).

Why would rich capitalists fund a communist revolution? Well, for one thing,
Czarist Russia had no central bank for the international bankers to plunder. In
addition, the Czar had intervened in America’s Civil War, sending fleets to both
New York and San Francisco, keeping the French and British (literally) at bay.
This spoiled the Rothschild plan to split our country in two. And according to
Gary Allen: "If one understands that socialism is not a share-the-wealth
program, but is in reality a method to consolidate and control the wealth, then
the seeming paradox of super-rich men promoting socialism becomes no paradox
at all. Instead, it becomes logical, even the perfect tool of power-seeking
megalomaniacs. Communism or more accurately, socialism, is not a movement
of the downtrodden masses, but of the economic elite”.

Even when Communism collapsed in the Soviet Union, Boris Yeltsin revealed that
most of the foreign aid was ending up: "straight back into the coffers of western
banks in debt service”. The international bankers, it seems, have always owned
everybody.

"People who will not turn a shovel full of dirt… nor contribute a pound of material,
will collect more money from the United States than will the People who supply all
the material and do all the work. This is the terrible thing about interest ... But
here is the point: If our nation can issue a dollar bond, it can issue a dollar bill.
The element that makes the bond good makes the bill good also. The difference
between the bond and the bill is, the bond lets money brokers collect twice the
amount of the bond and an additional 20%, whereas the currency pays nobody
but those who contribute directly in some useful way. It is absurd to say that our
country can issue $30 million in bonds and not $30 million in currency. Both are
promises to pay, but one promise fattens the usurers and the other helps the
people." - Thomas A. Edison, the New York Times, December 6, 1921. Of
course, this is true and we all know it. If you buy a house for $250,000 with a
30-year loan at 7.5%, you will end up paying over one and a half times as much
in interest as you paid for the actual building and land. The loan was created out
of nothing, with the stroke of a pen using fractional reserve banking, but the
interest paid was created from 30 years of blood, sweat, and tears of the
homeowner.

From the early 1920s to 1929, the monetary supply expanded and the nation
experienced strong economic growth. Curiously, however, the number of banks
started to decline. Toward the end of the period, speculation and loose money
had propelled asset and equity prices. The stock market crashed, and as the
banks struggled with liquidity problems, the Federal Reserve actually cut the
money supply. Without a doubt, this is the greatest financial panic and economic
collapse in American history (so far) - and it never could have happened on this
scale without the Federal Reserve Bank’s intervention. Banks collapsed and a few
of the old Money Trust banks managed to swoop in and grab up competitors for
pennies on the dollar. (Remember Jefferson’s warning, “First by inflation, then by
deflation...the banks will deprive the people of all property”)

"Nothing did more to spur the boom in stocks than the decision made by the New
York Federal Reserve bank, in the spring of 1927, to cut the rediscount rate.
Benjamin Strong, Governor of the bank, was chief advocate of this unwise
measure, which was taken largely at the behest of Montague Norman of the Bank
of England.” - Bernard Baruch. Why is the Bank of England (Rothschild) telling
the Federal Reserve Bank what to do ... Like they own it?

                                The Crash of ‘29

In April 1929, Paul Warburg sent out a secret warning to his friends that a
collapse and nationwide depression had been planned for later that year. Joseph
P. Kennedy, John F. Kennedy's father, was worth 4 million dollars in 1929. By
1935 that had increased to over 100 million dollars. The money did not simply
disappear in 1929; it just ended up consolidated in fewer and fewer hands, as
was planned.

So, as all the bankers and their friends already knew, in August the Federal
Reserve began to tighten the money supply. Then on the 24th of October 1929,
the New York bankers called in their broker call loans. This meant that anyone
who bought stock on margin and couldn’t come up with the rest of the money
they owed had to dump their stocks to cover their loans. Because of this, the
stock market crashed on a day that would go down in history as, "Black
Thursday”. Winston Churchill, after arriving from Chicago in Bernard Baruch's
private train, was on the visitor’s gallery of the New York Stock Exchange just as
the crash happened. The story goes, “When Churchill was ruined, Baruch called
him to his office, and gave all his money back, but not without an understanding.

At Churchill’s family home in Chartwell, he has two pictures, one above the other.
The top picture was of Bernard Baruch, the picture below was of a black and
white bulldog -- the bulldog, the symbol of Sir Winston himself in the world
media. The message, with Churchillian wit, is clear – ‘dog and master’.

"It was not accidental. It was a carefully contrived occurrence. The international
bankers sought to bring about a condition of despair here so that they might
emerge as rulers of us all!" - Congressman Louis McFadden (chairman of the
House Banking Committee at the time).

William Bryon, author of “The United States Unsolved Monetary and Political
Problems”, had this to say regarding the Panic of 1929, “When everything was
ready, the New York financiers started calling 24 hour broker call loans. This
meant that the stockbrokers and the customers had to dump their stock on the
market in order to pay the loans. This naturally collapsed the stock market, and
brought a banking collapse all over the country, because the banks not owned by
the oligarchy were heavily involved in broker call claims at this time. Bank runs
soon exhausted their coin and currency, and they had to close. The Federal
Reserve refused to come to their aid, even though they were instructed under the
law to maintain an elastic currency."

"Under the Federal Reserve, panics are scientifically created. The present panic is
the first scientifically created one, worked out as we might figure a mathematical
problem." - Congressman Charles Lindbergh.

Remarks by Federal Reserve Governor Ben S. Bernanke, March 2, 2004: “The
market crash of October 1929 showed if anyone doubted it, that a concerted
effort by the Fed can bring down stock prices. But the cost of this "victory" was
very high.
    


Curtis Dall, FDR's son-in-law, a manager for Lehman Brothers was on the floor of
the New York Stock Exchange the day of the Crash. He said, "Actually, it was a
calculated 'shearing' of the public by the world money powers, triggered by the
planned sudden shortage of call money in the New York money market."

"The Federal Reserve definitely caused the Great depression by contracting the
amount of currency in circulation by one-third from 1929 to 1933." - Milton
Friedman, Nobel Prize winning economist.

Whenever anyone writes about the crash of 1929, they invariably tell the story
about how all the really big investors of the day got out of the market just in
time, while all the schmucks lost their money. When you stop and think that the
run on Wall Street came about because the big New York banks made a margin
call and that the very same individuals who were ‘smart’ enough to get out of the
market early owned these banks, it doesn’t seem as much ‘smart’ as it does
‘planned’. Knowing the facts, would you call the crash of ’29 a conspiracy?

In June of 1930, Herbert Hoover received a delegation of public-spirited men who
urged an expansion of public works projects to help ease unemployment.
“Gentlemen”, the President said, “you have come sixty days too late. The
depression is over”. A 1930 version of: ‘Mission Accomplished’.

   (here this author goes into his opinion of what taxes did during the “Great
 Depression” and carries on with that into today. Funny that this author gets it
    right when talking about banking but not when talking about tax policy)

Oh, just a quick word on Hoover’s ‘Trickle Down Theory’: It doesn’t work.
Republican President Hoover tried the ‘trickle down theory’ (Hoover’s term) to
solve economic problems during the last few years of his term. The “Great
Depression” is often referred to as the “Republican Depression” because it was
Hoover’s financial philosophy that contributed to the collapse of the economy.
Hoover’s tax cuts for the rich did not trickle anywhere and things got worse – for
the lower and middle classes. When President Roosevelt got into office, he raised
taxes on the rich, created jobs for the poor, and things got a little better (Trickle
up?). President Ronald Reagan employed Hoover’s failed trickle down theory
again in the ‘80s and, just like the first time it was tried, the rich got richer, but
the poor got poorer and the economy declined. Today, we see the same problem
repeat itself encouraged by Bush’s tax cuts for the wealthy and deregulation of
the financial industry. The rich get richer while the poor bail them out. There
seems to be a pattern. “Any party which accepts credit for the rain must not be
surprised if its opponents blame it for the drought.” - Dwight Morrow on President
Hoover.

“The bank is something more than men, I tell you. It’s the monster. Men made
it but they can’t control it.” - John Steinbeck, The Grapes of Wrath. 
 


“During the 1930s, thousands of U.S. banks experienced runs by depositors and
subsequently failed... “Long-established central banking practice required that
the Fed respond both to the speculative attack on the dollar and to the domestic
banking panics. However, the Fed decided to ignore the plight of the banking
system ... once again the Fed had chosen to tighten monetary policy despite the
fact that macroeconomic conditions--including an accelerating decline in output,
prices, and the money supply--seemed to demand policy ease”... “The Federal
Reserve had the power at least to ameliorate the problems of the banks. For
example, the Fed could have been more aggressive in lending cash to banks
(taking their loans and other investments as collateral) or it could have simply
put more cash into circulation. Either action would have made it easier for banks
to obtain the cash necessary to pay off depositors, which might have stopped
bank runs before they resulted in bank closings and failures. Indeed, a central
element of the Federal Reserve's original mission had been to provide just this
type of assistance to the banking system. The Fed's failure to fulfill its mission
was, again, largely the result of the economic theories held by the Federal
Reserve leadership.” – Ben Bernanke, Chairman of the Federal Reserve Banks

“Mr. Chairman, 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. The Federal Reserve Board, a Government board, has cheated the
Government of the United States out of enough money to pay the national debt.
The depredations and the iniquities of the Federal Reserve Board and the Federal
Reserve banks acting together have cost this country enough money to pay the
national debt several times over. This evil institution has impoverished and
ruined the people of the United States, has bankrupted itself, and has practically
bankrupted our Government. It has done this through defects of the law under
which it operates, through the maladministration of that law by the Federal
Reserve Board, and through the corrupt practices of the moneyed vultures who
control it.” “From the Atlantic to the Pacific our country has been ravaged and
laid waste by the evil practices of the Federal Reserve Board and the Federal
Reserve banks and the interests which control them ... This is an era of economic
misery, and for the conditions that caused that misery, the Federal Reserve Board
and the Federal Reserve banks are fully liable.” - Louis Mc Fadden, Republican,
Chairman of the House Banking Committee, Congressional Record - June 10,
1932.
    


"Liquidate labor, liquidate stocks, liquidate real estate… values will be adjusted,
and enterprising people will pick up the wreck from less-competent people." –
Andrew Mellon, Secretary of the Treasury.

“Many Fed officials appeared to subscribe to the infamous "liquidationist" thesis of
Treasury Secretary Andrew Mellon, who argued that weeding out ‘weak’ banks
was a harsh but necessary prerequisite to the recovery of the banking system.
Moreover, most of the failing banks were relatively small and not members of the
Federal Reserve System, making their fate of less interest to the policymakers.
In the end, Fed officials decided not to intervene in the banking crisis,
contributing once again to the precipitous fall in the money supply.” – Ben
Bernanke

Between 1929 and 1933, the ‘Fed’ reduced the money supply by an additional
33%. In only a few weeks from the day of the crash, 3 billion dollars of wealth
vanished. Within a year, 40 billion dollars of wealth vanished. "The stock of
money, prices & output was decidedly more unstable after the establishment of
the Reserve System than before. The most dramatic period of instability in
output was, of course, the period between the 2 wars... This evidence persuades
me that at least a third of the price rise during & just after World War I is
attributable to the establishment of the Federal Reserve System... & that the
severity of each of the major contractions -- 1920-21, 1929-33 & 1937-38 -- is
directly attributable to acts of commission & omission by the Reserve authorities."
- Nobel Prize winning economist Milton Friedman.
                              The Great Gold Grab

After he took office, President Roosevelt, by Executive Order, confiscated all the
gold in the hands of Americans. The official price paid was $20.65 per ounce, a
bonus of $0.65 per ounce. Eight months later, the official price paid for gold was
raised to $35.00 per ounce. For the suckers, the American public, their meager
supply of dollars was instantly devalued by about 40%. For those who were in
the know, the rich who had bank accounts in other lands, it turned a quick, risk-
free profit, nearly doubling their money. President Roosevelt later disowned
himself from the bill claiming to have not read it and his Secretary of the
Treasury claimed this was, "what the experts wanted”. Roosevelt signed many
Executive Orders during his first term – presumably carefully written by ‘experts’
who, unlike FDR, knew exactly what they were doing. "All safe deposit boxes in
banks or financial institutions have been sealed... and may only be opened in the
presence of an agent of the I.R.S." - President F.D. Roosevelt, 1933. Think about
that. Better hide your gold in your mattress.

An interesting side note is that the legal basis for Roosevelt’s Executive Order was
the "War Powers Act" of October 6, 1917. This war had been over for 14 years!
The 1917 law was officially titled the "National Emergency in Banking Relief and
Trading with the Enemy Act”. The 1917 War Powers Act contained explicit
language that excluded American citizens from the legislation so FDR convened a
Special Session of Congress in 1933, specifically to remove that clause.
Consequently every law abiding US citizen was considered an "enemy” and
subject to its decree. This permitted the President to declare a "national
emergency" for just about any reason. In fact, the U.S. has been in a constant
state of “emergency” since 1933 and there are now in effect at least four different
president-proclaimed states of national emergency – from 1933, 1950, 1970, and
1971. They just do not go away.

"At noon on the 4th of March, 1933, FDR with his hand on the Bible, took an oath
to preserve, protect and defend the Constitution of the U.S. At midnight on the
5th of March 1933, he confiscated the property of American citizens. He took the
currency of the United States at standard of value. He repudiated the internal
debt of the Government to its own citizens. He destroyed the value of the
American dollar. He released, or endeavored to release, the Fed from their
contractual liability to redeem Fed currency in gold or lawful money on a parity
with gold. He depreciated the value of the national currency.” "Has Roosevelt
relieved any other class of debtors in this country from the necessity of paying
their debts? Has he made a proclamation telling the farmers that they need not
pay their mortgages? Has he made a proclamation to the effect that mothers of
starving children need not pay their milk bills? Has he made a proclamation
relieving householders from the necessity of paying rent? Not he! He has issued
one kind of proclamation only, and that is a proclamation to relieve international
bankers and the foreign debtors of the United States Government.” Remarks by
Louis McFadden, R-PA.
 


Bought at a bargain basement price, with money produced from nothing by the
Federal Reserve, gold was melted down and stacked in the newly built bullion
depository, Fort Knox. Once collected in 1935 the price of gold was raised from
$20.65 up to $35 per ounce, but only people with foreign bank accounts could
buy this gold. But that's not all folks. It has been estimated that by the end of
World War II, Fort Knox held about 70% of the world's gold, but over the years, it
was sold off to the European bankers while a public audit of Fort Knox reserves
was repeatedly denied. While Americans could not own gold, other than as rare
coins, individuals acting through foreign banks could purchase all the U.S. gold
they wanted at $35 dollars per ounce. 
      


"Allegations of missing gold from our Fort Knox vaults are being widely discussed
in European circles. But what is puzzling is that the Administration is not
hastening to demonstrate conclusively that there is no cause for concern over our
gold treasure - if indeed it is in a position to do so." Edith Roosevelt.

In 1953, President Eisenhower ordered an audit and Fort Knox was found to
contain over 700 million ounces of gold. Although Federal Law requires an annual
physical audit of Fort Knox's gold, it was under Eisenhower's presidency that it
was last audited - for reasons that will soon become clear. 
   


In 1971, when Nixon reopened the gold window to Americans, the price soared.
By 1979, it had peaked at about $850 per ounce. In 1974, a New York periodical
published an article claiming that the Rockefeller family was manipulating the
Federal Reserve to sell Fort Knox gold at $42.22 per ounce - when the market
was at $160 to $170 an ounce. Three days after the publication of this story, its
anonymous source, long time personal secretary to Nelson Rockefeller, Louise
Auchincloss Boyer, fell to her death from the window of her tenth story apartment
in New York. Labeled an, “apparent suicide” by police, she was not depressed
according to her friends and left no suicide note. 
   


Finally, in 1981, President Ronald Reagan, considering going back to a gold
standard, decided to examine the books of Fort Knox. He appointed a group
called The Gold Commission who reported that the US Treasury owned no gold at
all. All the gold remaining in Fort Knox is now owned by that private corporation,
the Federal Reserve Bank, held as collateral against the “national debt.” By
printing dollars made from nothing, the Fed had robbed the largest treasure of
gold on earth.

A key piece of legislation in this story is the Emergency Banking Act of 1933,
which Congress passed on March 9 without having read it and after “only the
most trivial debate. House Minority Leader Bertrand H. Snell (R-NY) conceded
that it was "entirely out of the ordinary" to pass legislation that "is not even in
print at the time it is offered”. He urged his colleagues to pass it all the same.
"The real truth of the matter is, as you and I know that a financial element in the
larger centers has owned the government ever since the days of Andrew
Jackson. History depicts Andrew Jackson as the last truly honorable and
incorruptible American president." - Franklin D. Roosevelt.

“The real rulers in Washington are invisible, and exercise power from behind the
scenes.” — Supreme Court Justice Felix Frankfurter, 1952.

The U.S. was not the only country controlled by bankers. In its 20th June, 1934
issue, New Britain magazine of London published a statement made by former
British Prime Minister David Lloyd George that, "Britain is the slave of an
international financial bloc”. Also in the article, “Democracy has no more
persistent and insidious foe than money power ... questions regarding Bank of
England, its conduct and its objects, are not allowed by the Speaker” (of the
House of Commons).

“The modern banking system manufactures money out of nothing. The process is
perhaps the most astounding piece of sleight of hand that was ever invented.
Banking was conceived in iniquity and born in sin. Bankers own the Earth. Take
it away from them, but leave them the power to create money, and with the flick
of the pen, they will create enough money to buy it back again... Take this great
power away from them and all great fortunes like mine will disappear, and they
ought to disappear, for then this would be a better and happier world to live in.
But if you want to continue to be slaves of the banks and pay the cost of your
own slavery, then let bankers continue to create money and control credit." - Sir
Josiah Stamp, director of the Bank of England during the years 1928-1941

                                The Hitler Project

“After World War I, Germany fell into the hands of the German International
Bankers. Those bankers bought her lock, stock, and barrel. They have
purchased her industries, they have mortgages on her soil, they control her
production, they control all her public utilities. Through the Federal Reserve
Board... over $30 billions of American money... has been pumped into Germany.
You have all heard of the spending that has taken place in Germany...
modernistic dwellings, her great planetariums, her gymnasiums, her swimming
pools, her fine public highways, her perfect factories. All this was done on our
money. All this was given to Germany through the Federal Reserve Board. The
Federal Reserve Board has pumped so many billions of dollars into Germany that
they dare not name the total.” Rep. Louis McFadden, Chairman of the House
Banking Committee.

“What luck for rulers that men do not think.” – Adolph Hitler
U.S. Corporations funding Hitler included Standard Oil, General Electric, I.T.T.,
American I.G. Farben, Ethyl Corporation, General Motors, and Ford. The largest
contributor to the fund was I.G. Farben. The board of American I.G. Farben at
this time contained some of the most prestigious names among American
industrialists: Edsel B. Ford of the Ford Motor Company, C.E. Mitchell of the
Federal Reserve Bank of New York, Walter Teagle, director of the Federal Reserve
Bank of New York, the Standard Oil Company of New Jersey, and President
Franklin D. Roosevelt's Georgia Warm Springs Foundation. Paul M. Warburg, first
director of the Federal Reserve Bank of New York and chairman of the Bank of
Manhattan, was a Farben director and in Germany, his brother Max Warburg was
also a director of I.G, Farben.

Webster G. Tarpley and Anton Chaitkin, authors of George Bush: “The
Unauthorized Biography” wrote: “On Oct. 20, 1942 (Almost a year after entering
the WW II), the U.S. government ordered the seizure of Nazi German banking
operations in New York City, which were being conducted by Prescott Bush.
Under the Trading with the Enemy Act, the government took over the Union
Banking Corporation, in which Bush was a director. The U.S. Alien Property
Custodian seized Union Banking Corp.'s stock shares, all of which were owned by
Prescott Bush, E. Roland “Bunny”' Harriman, three Nazi executives, and two other
associates of Bush”. "On October 28, the government issued orders seizing two
Nazi front organizations run by the Bush-Harriman bank: the Holland-American
Trading Corporation and the Seamless Steel Equipment Corporation”. ..."Nazi
interests in the Silesian-American Corporation, long managed by Prescott Bush
and his father in law, George Herbert Walker, were seized under the Trading with
the Enemy Act on Nov. 17, 1942..." The seizures of Bush businesses were
reported in a number of American papers including The New York Times and The
Wall Street Journal. Prescott Bush, of course, was the father of President George
Herbert Walker Bush and grandfather of President George Walker Bush. George
Herbert Walker was Prescott’s father-in-law. "That's where the Bush family
fortune came from: It came from the Third Reich”. - John Loftus, US Justice Dept.
Nazi War Crimes investigator. "Let’s forgive the Nazi war criminals”. - President
George Bush, New York Times – April 14, 1990. This has nothing to do with the
Federal Reserve Bank, it’s just a fun fact you can use at parties.

                           The World Bank and I.M.F.

Towards the end of World War II, in Bretton Woods, New Hampshire,
international bankers got together and created the framework for the
International Monetary Fund (IMF) and the World Bank. The principal architects
of the IMF were Harry Dexter White and John Maynard Keynes. Interestingly,
Harry Dexter White, liaison between the U.S. Treasury and State Department
during WW II and later director of the I.M.F., was positively identified as a Soviet
spy (code name, "Jurist") by the FBI. The I.M.F. and World Bank copied on a
world scale, what the Federal Reserve Act had established in the United States.
They created a banking cartel of the world's privately owned central banks, which
then assumed the power to dictate policies to the banks of all nations.

As struggling nations borrow from the IMF, they loose control when they can’t
pay the interest, and have to borrow more and more. The IMF will then decide
which nations can borrow more and which will starve. They can also use this as
leverage to take state owned assets like utilities as payment against the debt
until IMF eventually ‘owns’ the country. Take Ecuador as a typical example. In
order for Ecuador's government to be allowed a loan of 1.5 billion dollars from the
IMF, they were forced to take over the unpaid private debts that Ecuador's elite
owed to private banks and then the IMF dictated price hikes in electricity and
other utilities. When that didn't give the IMF enough interest, they ordered
Ecuador to raise the price of cooking gas by 80%; transfer the ownership of its
biggest water system to foreign operators; grant British Petroleum the rights to
build and own an oil pipeline over the Andes; eliminate the jobs of 120,000
government workers and reduce the wages of those remaining by 50%. In fact,
the IMF and World Bank have made the sale of electricity, water, telephone and
gas systems a condition of loans to every developing nation. The IMF owns 4
trillion dollars of third world ‘public’ assets. There are many losers in this world
banking system and few winners, the bankers. In 1987, Edmond de Rothschild
created the World Conservation Bank, which cleverly trades debts from third
world countries for vast tracts of their land. This design ensures the Rothschilds
will gain control over huge portions of the earth.

The debt of third world countries is constantly being increased to provide
temporary relief from the poverty being caused by previous borrowing. Attempts
to repay loans have caused increased infant mortality and unemployment,
deteriorating schools, and general health and welfare problems. Typically, these
loans do not alleviate poverty or further any development; they simply create a
steady flow of wealth from borrowing nations to the international bankers who
control the IMF and the World Bank. As one prominent Brazilian politician, Luis
Ignacio Silva, put it: "The Third World War has already started - a silent war, not
for that reason any the less sinister. This war is tearing down Brazil, Latin
America and practically all the Third World. Instead of soldiers dying there are
children, instead of millions of wounded there are millions of unemployed; instead
of destruction of bridges there is the tearing down of factories, schools, hospitals,
and entire economies. … It is a war by the United States against the Latin
American continent and the Third World. It is a war over the foreign debt, one
which has as its main weapon interest, a weapon more deadly than the atom
bomb, more shattering than a laser beam”.

Eventually these people will come to realize that their chains were forged with
money created out of nothing. We can expect individual complaints at first,
swelling to waves of outrage as whole populations awaken from centuries of
intellectual slumber to find their futures foreclosed and bleak. If this “Third
World” scenario frightens you, consider the fact that this very same scam of
creating money from debt is being used against you and we call it the Federal
Reserve System. Americans are now working longer hours than in any other
industrialized country and most of us just spinning our financial wheels while
slowly sliding down a slippery slope. There is a reason.

                          The Bankers’ Final Solution

"The powers of financial capitalism had a far-reaching plan, nothing less than to
create a world system of financial control in private hands able to dominate the
political system of each country and the economy of the world as a whole. This
system was to be controlled in a feudalist fashion by the central banks of the
world acting in concert, by secret agreements arrived at in frequent meetings and
conferences. The apex of the system was to be the Bank for International
Settlements in Basel, Switzerland; a private bank owned and controlled by the
world's central banks, which were themselves private corporations. Each central
bank... sought to dominate its government by its ability to control treasury loans,
to manipulate foreign exchanges, to influence the level of economic activity in the
country, and to influence cooperative politicians by subsequent economic rewards
in the business world." - Carroll Quigley, Professor, Georgetown University,
“Tragedy and Hope”

"We shall have World Government, whether or not we like it. The only question is
whether World Government will be achieved by conquest or consent." - Paul
Warburg, Council on Foreign Relations and Architect of the Federal Reserve
System: Feb 17, 1950 in an address to the U.S. Senate. "Who controls money
controls the world.” – Henry Kissinger.

"We are grateful to the Washington Post, the New York Times, Time magazine
and other great publications whose directors have attended our meetings and
respected the promises of discretion for almost forty years. It would have been
impossible for us to develop our plan for the world if we had been subject to the
bright lights of publicity during those years. But, the world is now more
sophisticated and prepared to march towards a world-government. The
supranational sovereignty of an intellectual elite and world bankers is surely
preferable to the National auto-determination practiced in past centuries" - David
Rockefeller, in an address to a Trilateral Commission meeting in June of 1991.

In 1953, in a toast before the New York Press Club, John Swinton, former Chief of
Staff of the New York Times and the "Dean of his Profession" stated, "If I allowed
my honest opinions to appear in one issue of my paper, before twenty-four hours
my occupation would be gone. The business of journalists is to destroy the truth;
to pervert; to vilify; to fawn at the feet of mammon, and to sell this country and
this race for their daily bread. We are the tools and vessels for rich men behind
the scenes. We are the jumping jacks, they pull the strings and we dance. Our
talents, our possibilities and our lives are all the property of other men. We are
intellectual prostitutes”. “They (the Rockefellers) control most of the important
newspapers, magazines, and book publishing houses in the country, including the
Curtis Publications, the Hearst Publications, Time, the New York Times, the
Associated Press and many others.” — The Elements of Economics, by J.L.
Carmichael.

"For more than a century, ideological extremists at either end of the political
spectrum have seized upon well-publicized incidents such as my encounter with
Castro to attack the Rockefeller family for the inordinate influence they claim we
wield over American political and economic institutions. Some even believe we
are part of a secret cabal working against the best interests of the United States,
characterizing my family and me as 'internationalists' and of conspiring with
others around the world to build a more integrated global political and economic
structure -- one world, if you will. If that's the charge, I stand guilty, and I am
proud of it." - David Rockefeller, from his Memoirs in 2002 (CEO of Chase Bank
for many years).

“The dirty little secret is that both houses of Congress have become increasingly
irrelevant... In case you hadn’t noticed, America’s domestic policy is now being
run by Alan Greenspan and the Federal Reserve Board. Congress is out of the
loop... America’s foreign policy, mean while, is now being run by the International
Monetary Fund (IMF), with some coaching from the Treasury Department... Here
too, Congress has become irrelevant. Some senators and House members fussed
a bit when the administration asked for tens of billions of additional dollars for the
IMF. But in the end, the elected representatives came through... And when the
president decides to go to war, he no longer needs a declaration of war from
Congress. He just calls up a few generals, phones Tony Blair in Britain and sends
in the bombers. Have you seen a single congressional hearing or congressional
debate on the U.S. - Iraqi war?” - Robert B. Reich, Secretary of the Treasury.

                                A Few Curiosities:

Federal Reserve Notes never claimed to be ‘dollars’ nor did they even claim to be
‘money’. The definition of a dollar is specified in the Coinage Act of 1792. Law
defines a dollar as, “371.25 grains of fine silver”. I’m sure everyone has seen a
real silver dollar. Other than that, you probably never have seen a real dollar.
The 1929 series of Federal Reserve notes said: “Redeemable in gold on demand
at the United States Treasury, or in gold or lawful money at any Federal Reserve
Bank”. The 1934 series of notes said: "The United States of America will pay to
the bearer on demand (for example) five dollars”. Why would you take this note
and change it for five dollars, unless it was not five dollars? It also said, "This
note is legal tender for all debts public and private, and is redeemable in lawful
money at the United States Treasury or at any Federal Reserve Bank”. So the
notes were not ‘lawful money’?
In 1963, the ‘Fed” began to issue its first series of notes without the promise,
while taking notes with the promise out of circulation. How can paper become
what it promises by removing the promise? It now reads simply, "This note is
legal tender for all debts public and private" meaning just that - it is what it is, or
– “I yam what I yam.” – Popeye, 1936.

If you want to know what real money feels like, in one hand, hold a silver dollar
or, better yet, a double eagle, a twenty-dollar gold piece. Now, in your other
hand, hold the equivalent Federal Reserve Note. Originally, these items were
freely interchangeable. Our dollars used to say that they were redeemable in
gold or silver – and they were. Merchants had paper money along with gold and
silver coins in their registers. Many of us are old enough to remember our
change was always paid in silver and copper (not copper-coated zinc) coins. Gold
coins stopped in 1933, silver coins in 1963, and copper in 1982. Oh, and do you
know why they are called, dollar ‘bills’? Because they are just like any other ‘bill’
or I.O.U. that is owed. We Americans, through our government, ‘borrowed’ that
money from the ‘Fed’, it is part of our national debt and we owe them that dollar
back plus interest. We can barely pay the interest on this debt, which is currently
(pre-bailout) about $475 billion a year.

In 1963, President Kennedy issued paper money from the U.S. Treasury carrying
a red seal, called United States Notes. These are NOT Federal Reserve Notes;
they are in fact, issued by our U.S. Treasury. (You can buy them on Ebay) Some
conspiracy theorists believe he was killed, like President Lincoln, for having the
gall to print money outside of the Federal Reserve System. June 4, 1963, 5
months before he was killed by a person or persons unknown, President Kennedy
signed Executive Order No. 11110, which authorized the U.S. Treasury to issue
silver certificates against any silver bullion in the Treasury. I find it unlikely that
the Federal Reserve was involved in his murder. Honestly, there are so many
theories about why and who killed Kennedy that he would have had to be shot
about a hundred and fifty times that day for every alleged conspirator to be
guilty. Who killed Kennedy? Simple answer, the C.I.A. But that’s another blog.

"Most Americans have no real understanding of the operation of the international
moneylenders. The bankers want it that way. We recognize in a hazy sort of
way that the Rothschilds and the Warburgs of Europe and the houses of J. P.
Morgan, Kuhn, Loeb and Company, Schiff, Lehman and Rockefeller possess and
control vast wealth. How they acquire this vast financial power and employ it is a
mystery to most of us. International bankers make money by extending credit to
governments. The greater the debt of the political state, the larger the interest
returned to the lenders. The national banks of Europe are actually owned and
controlled by private interests... 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." - Sen. Barry Goldwater (R-AZ.)
Conspiracy theorists, like Barry Goldwater, argue that the ‘Fed” has never been
audited. That is sort of a fact. Although the private accounting company, Price
Waterhouse, goes over the ‘Feds’ books every year and shows us how much
money is spent on wages, benefits, equipment, and clearing our checks, they are
not allowed to look at little things like how much money the ‘Fed’ transfers into
and out of our country. Federal law actually excludes several areas from
inspections, including (31 USCA §714): “(1) transactions for or with a foreign
central bank, government of a foreign country, or non-private international
financing organization...” The ‘Fed’ can send money overseas without approval,
oversight, or audit by anyone. I figure if the ‘Fed’ wanted to send vast sums of
money to its international banker owners; it would do it by wiring it to a foreign
bank account, not by cutting a paycheck. So, the ‘conspiracy’ theory that the
Federal Reserve is sending billions or even tens of billions of our U.S. tax dollars
every year to ‘international Bankers’. Well, that theory may or may not be true.
By law, we literally cannot know. Why do you think there be a law like that? 


Here’s something else to consider, according to Federal law, “No Senator or
Representative in Congress shall be a member of the Federal Reserve Board or an
officer or a director of a Federal reserve bank”. No member of Congress, no
representative of the American people, is to have access to the inner sanctum.
What do they fear? U.S. Senators and Representatives form Intelligence
Committees charged with overseeing our country’s deepest, darkest secrets and
covert missions, but they are forbidden, by law, to know what the ‘Fed” is doing.

Also, according to12 USC 3019, Federal Reserve banks, including the capital stock
and surplus therein, and the Income derived there from shall be exempt from
Federal, State, and local taxation, except taxes upon real estate. Why are they
not exempt from real estate taxes? Because they are not part of the federal
government. The Federal Reserve is the only private corporation that is exempt
from federal and state taxes. This independent ‘Fed’ can refuse to create money
if it wants. Professor Seymour E. Harris, Harvard economist, wrote in the
Washington Post, “We cannot afford, in these days of crisis, the luxury of the
Executive going one way and the Fed another. Under President Kennedy, there
were threats of restrictive monetary policy; e.g., at one point Mr. Martin would
VETO the tax cut by not financing the deficit out of additional money. The Board
itself gives too much attention to the wishes of the financial interests. The banks
even more so."

In 1935, the U.S. Supreme Court struck down Roosevelt’s National Recovery
Administration as unconstitutional. According to the Supreme Court, “The
Constitution established a national government with powers deemed to be
adequate, as they have proved to be both in war and peace, but these powers of
the national government are limited by the constitutional grants. Those who act
under these grants are not at liberty to transcend the imposed limits because
they believe that more or different power is necessary. Such assertions of extra-
constitutional authority were anticipated and precluded by the explicit terms of
the Tenth-Amendment. The powers not delegated to the United States by the
Constitution, nor prohibited by it to the States, are reserved to the States
respectively, or to the people.” (You may recall that this was exactly Thomas
Jefferson’s argument against establishing America’s first central bank) The
National Recovery Administration attempted to put into place the exact same type
of self-serving industrial cartel as was created by the Federal Reserve Act. The U.
S. Constitution is very clear and it does not empower the federal government to
issue un-backed, fiat currency. Somehow through the “Federal Reserve Act”,
Congress has delegated to private bankers a power that the Congress itself does
not have. Unfortunately, the question of the legality of the ‘Fed’ has never been
brought before the Supreme Court and all these public officials – from the
President on down - who have sworn to “defend the Constitution from all enemies
foreign and domestic” continue to look the other way.

HR 2755, currently in the House of Representatives, calls for the abolition of the
Federal Reserve System. Over 1,500 U. S. cities and organizations have called
for the dissolution of the Federal Reserve. Wright Patman, Chairman of the
House of Representatives Committee on Banking and Currency for 40 years,
introduced legislation to repeal the Federal Reserve Banking Act twenty times.
Congressman Henry Gonzales, when he was Chairman of the banking committee,
also introduced legislation to repeal the Federal Reserve Banking Act nearly every
year. It's always defeated. I have provided you with many quotes from Louis
McFadden, Chairman of the House Banking Committee and Charles Lindbergh
(Republican Senator from Minnesota). Both actually attempted to impeach
members of the ‘Fed’! Do these people, people who have intimate knowledge of
the machinations of the Federal Reserve System, know something you and I
don’t? It’s no wonder we are in the dark, the same bankers who own the ‘Fed’
control the media and give huge political contributions to sympathetic members
of Congress. 
    


You know, given the conspiratorial beginnings of the Federal Reserve, its cartel
oligopoly of the U.S. banking industry designed to benefit a few New York Banks,
and the appalling statutory and media secrecy, it’s no wonder that otherwise
normal people are convinced that shenanigans are afoot. Go ahead; call it a
conspiracy. It is.

                           A Note about the Bailout

First, let me just quote part of Section 8 of the actual Bailout Bill that passed
Congress: "Decisions by the Secretary pursuant to the authority of this Act are
non-reviewable and committed to agency discretion, and may not be reviewed by
any court of law or any administrative agency”. Interesting. (It’s not called
“Section 8” for nothing) Why would that wording be put into this bill? Well, in an
article published in the October 24, 2008, New York Times, the newspaper's
economic columnist, Joe Nocera, reveals what he calls "the dirty little secret of
the banking industry”, that many banks have no intention of using the
government bailout money to make new loans. As Nocera explains, the plan to
hand over $250 billion in taxpayer money to the biggest banks was never
intended to get them to resume lending to businesses and consumers. Its real
aim was to bankroll a rapid consolidation of the American banking system by
subsidizing a wave of takeovers of smaller financial firms by the most powerful
banks. Nocera cites an employee-only conference call held October 17 by a top
executive of J P Morgan Chase, a beneficiary of $25 billion in public funds.
Nocera explains that he was able to listen, surreptitiously to a recording of the
proceedings. Asked by one of the participants whether the $25 billion in federal
funding will "change our strategic lending policy”, the executive replies, "What we
do think, it will help us to be a little bit more active on the acquisition side or
opportunistic side for some banks who are still struggling”. "And I would not
assume that we are done on the acquisition side just because of the Washington
Mutual and Bear Stearns mergers. I think there are going to be some great
opportunities for us to grow in this environment. and I think we have an
opportunity to use that $25 billion in that way, and obviously depending on
whether recession turns into depression or what happens in the future, you know,
we have that as a backstop”. “We would think that loan volume will continue to
go down as we continue to tighten credit to fully reflect the high cost of pricing on
the loan side.”

Nocera notes: “It is starting to appear as if one of Treasury’s key rationales for
the recapitalization program — namely, that it will cause banks to start lending
again — is a fig leaf, Treasury’s version of the weapons of mass destruction”. “In
fact, Treasury wants banks to acquire each other and is using its power to inject
capital to force a new and wrenching round of bank consolidation.” As Mark
Landler reported in The New York Times earlier this week, “the government wants
not only to stabilize the industry, but also to reshape it... I don’t know about
you, but I’m starting to feel as if we’ve been sold a bill of goods”. Bankers have
been told that bailout money has been given to banks whether they need it or not
so that the public won’t know which banks are in financial need and pull their
money out of those institutions. Sure. Like publicly traded banks don’t all issue
quarterly financial statements. The weak banks use bailout money to help shore-
up their balance sheets and then the strong banks use their money to sweep
them up.

So, the Bush administration, using the same flourish and sense of immediacy that
accompanied their “War on Terror”, the Afgan and Iraq wars, once again sends
trillions of taxpayer dollars from working class Americans to the richest of the
world’s rich. There he goes again, spreading the wealth. You don’t have to be
steeped in conspiracy theories to see the pattern here.

Here’s a question for you: Who owns the “Fed?” The last time the shares were
audited (That I can find) was as of 11:05 A.M. on July 26, 1983. As of that date
and time, 53% of the New York Federal Reserve Bank – which controls the ‘Fed’
and represents about one half of the total assets of the entire system – was
owned by 5 banks: Chase, Chemical, Citibank, Manufacturers Hanover, and
Morgan. Since that day, Chemical Bank bought Manufacturers Hanover in 1991;
Chemical merged with Chase in 1996; and Chase merged with Morgan in 2000.
If the shares remained with the holders of record in 1983, your Federal Reserve
System is now controlled (as it has been since the beginning) by J.P. Morgan
Chase (Rothschild and Rockefeller) and Citibank. Citibank remains in a very weak
condition, even after having received two bailout packages totaling $45 billion. It
still has a good chance of being taken over – After Citibank has received her last
dollar of funding, J.P. Morgan Chase will just use our taxpayer money to limit its
competition and monopolize the banking industry.

Speaking of taxpayer money, round two of the current Bailout raises the total
expenditures to about $2 trillion. If we just make it $3 trillion, we could give
every man, woman, and child in the U.S. $10,000 cash to go out and spend
their/our way out of this looming depression. You know a ‘spread the wealth’
kind of thing. Sure this sounds crazy, but think about it... Who else would know
how to spend the bailout money quickly and in exactly the right manner to help
the most people? Who else deserves this break but the very people we are
counting on to pay the bills? Think of it as a loan to the taxpayers, to be paid
back by the taxpayers. This money would go to pay mortgages, buy cars, buy
food, and yes, buy liquor and drugs. The point is that the money would be put
into circulation very rapidly and ALL the wheels of our economy would be greased
simultaneously. Do you actually think that giving all that money to just a few of
the largest banks makes more sense?
       


During the presidential campaign, there was a lot of disparaging talk about
Obama’s ‘spread the wealth’ statement. McCain ‘spinsters’ seized upon this
‘Socialist’ talk and milked it for all it was worth. (Apparently, not much.) The
fact of the matter is that we are constantly redistributing the wealth of this
country. Unfortunately, the money goes the wrong way, from the working
taxpayers to the rich. Consider the billions of dollars given to corporations in “no-
bid” or sweetheart contracts, “pork barrel” additions to Congressional bills, and
corporate tax “loopholes,” subsidies, externalities, and bailouts... all for the
benefit of the rich and paid for by the working class. How do the beneficiaries of
all this “Corporate Socialism” repay us struggling taxpayers? By sending our jobs
to foreign lands, hiring illegal aliens, plundering pension funds, laying-off workers
just before they reach retirement age, by merging and eliminating competition,
by price-fixing and collusion, by cutting health benefits, by instituting usurious
fees and penalties on all of our accounts, by externalizing the costs of pollution
and product health risks and by passing on to consumers everything from the
legal costs of avoiding regulations to buying politicians. Corporate Socialism
privatizes profits but socializes risk.
                               What can be done?

Given our present national fiscal predicament, what can be done? The cure is
relatively simple and painless. The U.S. Government should buy back the Federal
Reserve System for $450 million (As is specified in its “enabling act”), keep
everybody employed doing the same job as they do now in the same buildings,
using the same equipment, and at the same pay. The only difference would be
that they would be working for the U.S. Treasury Department and not a private
corporation. Any income generated from the interest on the U.S. Bills, Notes,
and Bonds would be recycled back into the treasury – just as the current ‘Fed’ is
supposed to do. The difference would be that there would be no secret overseas
money transfers. Everything would be open and above board.

Next, eliminate the whole circular process of making Treasury instruments, selling
them, paying (receiving?) interest on them, and then buying them back. If the
U.S. Government has the ability to print its own money – and it does – what is
the purpose of the Treasury Bills, Notes, and Bonds? Nothing. The Federal
Reserve Banks demands them in exchange for printing money, but our
Government can print its own money without any help from the ‘Fed’. We don’t
need the Federal Reserve or the Treasury instruments. In fact, the Treasury
Instruments do nothing constructive, they simply tie-up money that could be
used elsewhere. Most government projects funded by the $11 trillion in national
debt have long ago come and gone but we taxpayers continue to pay interest to
the Federal Reserve Banks on the ‘debt’.

If these ‘dead’ instruments were eliminated, there would be trillions of dollars
unencumbered and available for investment in ‘living’ businesses, real estate,
state and local government bonds. What happens to our national debt if we retire
the Treasury Bills, Notes, and Bonds? It disappears. When we retire the
Treasury instruments, we stop paying interest and we won’t owe anybody
anything.

The Treasury will simply print money when needed by Congress, just like the
Federal Reserve currently does, and everything stays the same. Inflation
wouldn’t go away, of course, but it wouldn’t be any worse either. With the
“National Debt” gone, we Americans just might get our Ft. Knox gold back that
the ‘Fed’ took as collateral. By eliminating Treasury Bonds, Notes, and Bills,
taxpayers can save about $500 billion every year on interest payments.
Alternatively, we can pay the same in taxes and use that money for better
medical care, education, roads, hospitals, etc. Alternatively, if you are of the
“Neo-Con” persuasion, we could heed God’s call and invade Iran, Syria, North
Korea, etc. 
   


The U.S. economy cannot absorb the return of $11 Trillion without serious
disruption and dilution of the dollar (inflation). The best way to absorb the return
of these wayward funds while controlling inflation is to increase the reserve
requirements for loans at lending institutions. Currently, banks have a 10%
reserve requirement on checking deposits and essentially, a 0% reserve
requirement for savings accounts and CDs. A 10% reserve requirement means
that if your bank takes in $100 in a checking account, it can loan out $1,000 to
somebody else. Your bank simply ‘creates’ another $900 of ‘money’. If that
sounds bizarre to you, take a minute and think about what a 0% reserve
requirement means. Now, how do you feel knowing that there are so few dollars
behind your bank loan? Behind our entire economy?

Currently, banks create about ten times as much ‘money’ as the Federal Reserve
System. Do you think that our economy might be on a little firmer footing if the
reserve requirements were slightly higher – a little more meaningful? We can
control inflation by balancing this infusion of money into our economy while
increasing the reserve requirements of lending institutions. This will not only
stimulate our economy at a time when it is sorely needed, but also fortify our
banking system (at a time when it is sorely needed). Balance is the key. If we
raise the reserve requirements too little, we risk more inflation... too much, and
we will have a deflationary spiral and depression. 


Who is currently in charge of monitoring the banks’ reserve requirements? The
Federal Reserve. Picture it this way: If the banks were hens, the ‘Fed’ would be
the fox. By absorbing the Federal Reserve System functions into the Treasury
Department, where they rightfully belong, our banks would be monitored, not by
their cohorts and competitors, but by slightly more impartial government
officials. Strict, independent monitoring of banking reserve requirements and
interest rates would act as a steady hand on the tiller of our economy. 
  


How do you control interest rates? In classic free market dynamics, the market
sets the rate. Without ‘Fed’ interference, wouldn’t the market normally take care
of the rates automatically? When there is more money chasing fewer loans,
interest rates fall, stimulating the economy. When more people want to borrow,
interest rates go up, slowing the economy. If the government only pumped in
more money to keep up with increases in production, there would be enough
money for the economic system, but not so much to cause inflation. Extra money
could be pumped into the market if the Treasury felt the need for stimulation
outweighed the need for stability – Like now.
   


To take the place of the Treasury instruments in our money markets, the
Treasury can insure high-grade corporate paper and back the principal and
interest with the “full faith and credit of the United States”. Of course, the
interest rate that the issuing corporation pays investors on these insured notes
and bonds would be less than what is paid on their uninsured debt and this
difference would be sent to the Treasury by the corporation as payment for the
insurance. Of course, the debt instruments of more financially sound companies
would have a narrower spread than the lower grade paper. This spread would no
doubt fluctuate over time as the corporation became more or less solvent,
automatically adjusting the price paid for the insurance to the risk involved. 
 


What? The Government can’t insure private paper? We are doing it right now.
The Federal Deposit Insurance Corporation insures your savings account (‘til the
end of 2009) up to $250,000. They have $52 Billion insuring $4.3 Trillion in
savings. If that is ever used up, the U.S. Government (taxpayers) will step in
and cover the rest for the bankers. Indy Mac alone cost $9 billion. And what
about the current two trillion dollar banker bailout? Again, that’s the U.S.
Government (taxpayers) stepping-in and covering private paper. As long as we
taxpayers are insuring private investments, we may as well be paid for it by the
people who are profiting from our guarantees – expressed or otherwise. 
     


Whether or not you believe that the ‘Fed’ is set up for the enrichment of the few
at the expense of the many... Even if I have not convinced you of anything so
far...

“The power to determine the quantity of money... is too important, too pervasive,
to be exercised by a few people, however public-spirited, if there is any feasible
alternative. There is no need for such arbitrary power... Any system which gives
so much power and so much discretion to a few men, [so] that mistakes -
excusable or not - can have such far reaching effects, is a bad system. It is a bad
system to believers in freedom just because it gives a few men such power
without any effective check by the body politic - this is the key political argument
against an independent central bank.” – Milton Friedman, Economist.
         


There’s one more point you should consider: It’s you. It’s you and me and
everybody else. We humans create these institutions, corporations, and
governments for our benefit. We, the people of the United States of America,
have all the power. If the Federal Reserve System does not function to our liking,
we have the absolute power to change or abolish it. We are not on this planet, in
this country, at this time, to be anybody’s slave. 
 


I figure we have one last chance to take control of our destiny. With all eyes
focused on our economic plight, if there is ever to be a chance for true reform,
that time is now. If our current situation is ‘fixed’ by the massive infusion of
devalued dollars, America’s attention will quickly return to sports, movie stars,
and local crime. If it remains broken, we will face an economic depression.

“It's a recession when your neighbor loses his job; it's a depression when you
lose yours.” - Harry S. Truman.

And, as J.P. Morgan said, “People without homes will not quarrel with their
leaders. This is well known among our principal men now engaged in forming an
imperialism of capitalism to govern the world. By dividing the people we can get
them to expend their energies in fighting over questions of no importance to us
except as teachers of the common herd”. 
     


These villains have always relied upon our ignorance and their secrecy to advance
their plans. Right now, you have two choices... awareness or oblivion.

Thomas Jefferson, “If a nation expects to be ignorant and free, it expects what
never was and never will be,” or Doris Day, “Que sera, sera. Whatever will be,
will be”.

Choose.

				
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