THE BANKING MONOPOLY
I. Introduction: The Federal Reserve Act Of 1913.
In 1913 Congress passed a bill called the Federal Reserve Act of
1913, which allowed for an independent bank, deceptively named the
Federal Reserve. The privately held bank was a monopoly given to a
handful of private bankers to issue America’s money. That debt based
monetary system, generated by this private corporation is what has been
destroying the American economy, and bringing about wars, and
depressions for generations.
Facts about the Federal Reserve.
- The Federal Reserve is a privately owned for profit corporation.
- The Federal Reserve has no reserves.
- The name was created prior to the Federal Reserve Act being passed in 1913. This was done to make Americans believe the U.S. banking system operated in the public interest. The truth is the Federal Reserve is a private bank owned by private shareholders, and runs purely for private profits, and thereby creating massive debt to the American people.
- This privately held organization pays no taxes on the trillions of dollars it makes.
The Federal Reserve was chartered by an act of deceit, by an act of
congress when most of congress had gone home for Christmas holiday on
December 23rd 1913. The Federal Reserve Act of 1913 passed the house,
but was having difficulty getting through the senate.
No recess had been called, most senators had gone home, yet three
senators passed the act with a unanimously voice vote. There was no
objection. If there had been one person present in the absence of a
quorum, the bill would not have been passed.
In 1923, Representative Charles A. Lindbergh, a Republican from
Minnesota, and father of the famous aviator Lucky Lindberg stated. “The
financial system has been turned over to the Federal Reserve Board. That
board administers the finance system by authority of a purely
profiteering group. The system is private, conducted for the sole
purpose of obtaining the greatest possible profits from the use of other
people’s money.
Former chairman of the House Banking and Currency Committee, during
the great depression era, Louis T. McFadden in 1932 stated, “We have in
this country one of the most corrupt institutions the world has ever
known. I refer to the Federal Reserve Board. This evil institution has
impoverished the people of the United States and has practically
bankrupted our Government. It has done this through the corrupt
practices of the moneyed vultures who control it.”
Rep. McFadden said, “When the Federal Reserve Act was passed, the
people of these United States did not perceive that a world banking
system was being set up here. A super-state controlled by international
bankers and industrialists acting together to enslave the world. Every
effort has been made by the Fed to conceal its powers but the truth is
the Fed has usurped the government.” After he lost his congressional
seat in 1934, he remained in the public eye as a vigorous opponent of
the financial system, until his sudden death on October 3, 1936. There
were two previous attempts on Louis McFadden’s life. Two bullets were
fired at him on one occasion, and later he was poisoned at a banquet.
Evidently, the third time the assassins succeeded, and the most
articulate critic of the Federal Reserve and the financiers’ control of
the nation would finally be silenced.
Senator Barry Goldwater, was a frequent critic of the Federal
Reserve, “Most Americans have no real understanding of the operation of
the international moneylenders. 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.
Thomas Jefferson, “I sincerely believe that banking institutions are
more dangerous to our liberties than standing armies. The issuing power
should be taken from the banks and restored to the people to whom it
properly belongs.
James Madison, the main author of the U.S. Constitution, “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.
The Federal Reserve is now the most powerful privately owned central bank in the world. However, it was not the first.
II. The Money Changers.
Two thousand years ago, Jesus threw the money changers out of the
temple of Jerusalem for corrupting Judaism. It was the only time Jesus
ever used force during his entire ministry.
When Jews went to the temple to pay their temple tax, they could only
pay it with a special coin, the half shekel of the sanctuary, which is a
half ounce of pure silver. It was the only coin that was pure silver,
and didn’t have the image of the pagan emperor on it. In Judaism, the
half shekel was the only coin acceptable to “god.”
The coins were not plentiful, therefore the money changers cornered
the market on the coins, and raised the price, and just like any other
commodity, they changed the price to what ever the market would bare.
The money changers were making huge profits because they held a monopoly
on the money. The Jews had to pay whatever they demanded. To Jesus this
was an abomination that totally violated the sanctity of gods house.
The money changing scam did not originate in Jesus’ time. Two hundred
years before Christ, Rome was having trouble with money changers. Two
early Roman emperors tried to diminish the power of the money changers
by reforming usury laws and limiting land ownership to 500 acres. Both
emperors were assassinated. In 48 B.C., Julius Caesar took back the
power to coin money from the money changers and minted coins for the
benefit of all. With this new and plentiful supply of money, Caesar
built great public works projects. By making money plentiful Caesar won
the loyalty and admiration of the common man, but the money changers
hated him. Economic experts believe this was an important factor in
Caesar’s assassination. Upon the death of Caesar came the demise of
plentiful money in Rome. Taxes increased and so did political
corruption. Just as in America today, usury and debased coins became the
rule.
Eventually the Roman money supply was reduced by 90%, as a result the
common people lost their land and their homes, just as it has happened
in the U.S. With the demise of common money, the masses lost confidence
in their government and refused to support it. Rome then plunged into
the dark ages. Since the U.S. has followed this same corrupt political
and money system, most Americans themselves have lost their money and
their property. Just as in Rome, when Rome met its demise, the U.S.
government has refused to take action and do away with the
privatization, and monopoly of the U.S. money system. Rome as America
will follow, fell from its greatness.
III. The Goldsmiths.
One thousand years after the death of Christ, money changers, those
that lend money for excessive fees, and those that manipulate the
quantity of money, were active in Medieval England. They were so active
that they could orchestrate and manipulate the entire English economy.
These were not bankers per se, these were goldsmiths the first bankers
because they kept other people’s gold for safe keeping in their vaults.
The first paper money was merely a receipt of money, gold and silver
coin that was left with the goldsmith to keep in their vaults. Paper
money became the norm because it was more convenient than carrying
around heavy gold and silver coin. The goldsmiths eventually noticed
that only a small fraction of people ever returned to demand their gold,
at any one time. Goldsmiths started cheating on the system and
discovered they could by print more money than they had gold. The
goldsmiths would then loan out the extra money, and collect interest on
it, not paying any interest to depositors. This was the birth of
Fractional Reserve Banking, loaning out many times more money than there
are assets on deposit.
Example: If a goldsmith had 1000 in deposits, they would draw up
10,000 in paper money, and lend out 10 times more than they actually had
in deposits. Goldsmiths gradually began to accumulate more wealth and
then used this criminal enterprise to accumulate more and more gold.
Today the practice of loaning out more money than there are gold, is
known as Fractional Reserve Banking. Every bank in the U.S. is allowed
to loan out at least ten times more money than they actually have. That
is why they get rich, charging interest.
Example: A bank gives a loan of 8% interest. There actual income is 80%.
In the middle ages Cannon Law of the Catholic church forbade charging
interest on loans. This concept followed the teachings of Aristotle and
Saint Thomas Aquinas. They taught the purpose of money was to serve the
members of society, and to facilitate goods needed to lead a virtuous
life. Interest was considered a hinderous, and unnecessary burden on the
use of money. Interest was contrary to reason and justice.
Europe followed the Cannon Laws of the Church, forbidding the
charging of interest, and made it a crime called usury and passed
legislation known as Usury Laws. However, as commerce and opportunity
for investment arose in the late middle ages, it came to be recognized
that lenders had risk in lending and in lost opportunity for investment.
Some charges began to be allowed, but charging interest still remained a
crime. All moralist condemned fraud, oppression of the poor, and
injustice.
Clearly, fractional lending is rooted in fraud, results in
wide-spread poverty and reduces the value of everyone that has honest
money.
Ancient goldsmiths discovered that extra profits could be made by
rowing the economy between easy money and tight money. When they made
money easy to borrow, then the amount of money in circulation expanded,
and people took out more loans to expand their businesses. Then the
money changers would tighten the money supply and make more money
difficult to get. Goldsmiths realized that certain people could not
repay their loans and could not take out new loans to repay the old
ones, as a result they would have to go bankrupt and sell their property
to the goldsmiths for pennies on the dollar.
The same criminal enterprise of usury lending, tightening the money
supply, default on loans and property confiscation is still happening,
only now it is called the business cycle.
IV. King Henry I Of England: The Tally Sticks.
Around 1100 AD King Henry 1st resolved to take the power of money
away from the lenders. He invented one of the most unusual money systems
in history. It was called the Tally Stick System. This system lasted
until 1826. The Tally System was adopted to avoid the monetary
manipulation of the goldsmiths. Tally Sticks were merely sticks of wood
with notches cut on one edge of the stick to indicate denominations.
Then the stick was split lengthwise so that both pieces still had a
record of the notches.
The king kept one half to protect against counterfeiting. The other
half would be spent into the economy and circulate as money. Under this
system money could not be manipulated, and it could not be stolen. No
other form of money had worked as well, and for so long as Tally Sticks.
The British Empire, which was the most powerful nation in the world,
was built on the Tally Stick System.
The Bank of England was formed in 1694, and attacked the Tally Stick
System because it was money that was outside the power of the money
changers, just as King Henry had wanted it to be.
The Tally Stick succeeded despite the fact that the banks introduced the coin system as competition.
In the 1500s, King Henry 8th relaxed the usury laws, the money
changers immediately made their metal coins plentiful for decades. But,
when Queen Mary tightened the money laws on usury, the money changers
renewed the hoarding of gold and silver coins, causing the economy to
plummet. When Queen Elizabeth the first took the throne she was
determined to regain control of the economy. Her solution was to
introduce gold and silver coins from the public treasury and take away
control of the money supply from the money changers.
Financed by the money changers, Oliver Cromwell overthrew King
Charles, purged the Parliament and put the King to death. The money
changers were allowed to immediately consolidate their financial power.
The result was, for the next 50 years, the money changers plunged Great
Britain into a series of costly wars. They took over a square mile of
property in the center of London, known as the city of London. This area
is still known as one of the three prominent financial centers of the
world.
Conflicts with the Stewart King led the money changers of Britain to
combine with the money changers of the Netherlands and finance the
invasion of William of Orange, and overthrow the Stewarts in 1688, and
took the English throne.
V. The Bank Of England.
By the end of the 1600s, England was in financial ruin. The
continuous wars with France and Holland had exhausted the nation.
Frantic government officials met with the money changers and begged for
the money necessary to pursue their political purposes. The price was a
government sanctioned, privately owned bank, which could issue money
created out of nothing.
The Bank of England would be the first privately owned central bank.
It was deceptively called the Bank of England to make it appear to the
general population that it was part of the government. Like any other
private corporation, the bank sold shares to get started. The investors
names were never revealed. Each investor was to put up one and a quarter
million British pounds in gold coin to purchase their shares in the
bank. However, only 750 thousand pounds was ever received. Despite that,
the bank was chartered in 1694 and started loaning out several times
the money it was supposed to have on reserve, all at interest. The new
bank would lend politicians as much money as they needed as long as they
secured the debt through direct taxation of the British people. As a
result, the formation of the Bank of England became a form of legal
counterfeiting of the national currency for private gain.
Unfortunately, today nearly ever nation has a privately owned central
bank. Using the Bank of England as the basic model. This form of
banking takes over an entire nations economy and becomes a plutocracy
ruled by the rich.
Nations do need central banks, however they do not need them to be privately controlled.
The central bank scam is in reality a hidden tax where nations sell
bonds to the central banks to pay for things politicians don’t have the
political will to raise taxes to pay for. But, the bonds are created by
the central banks out of nothing. More money in circulation makes the
money already in circulation worth less. The government gets as much
money as it needs and the people pay for it with inflation.
VI. The Rothchilds: Fraud on the Market.
Fifty years after the Bank of England opened its doors, a goldsmith
named Anseim Moses Bauer, opened a coin shop in Frankfurt Germany. Over
the door was a sign depicting a Roman eagle on a red shield. The shop
became known as the Red Shield Firm. in the German language this meant
Rothschild. When Amshel Mayor Bauer, Bauer’s son inherited the business
he changed the family name to Rothschild. Amshel learned that loaning
money to governments and kings was more profitable than loaning to
private individual. Not only were the loans bigger, but they were
secured by the nations taxes. Amshel had four sons and trained them all
in the skill of money creation and sent them out to Europe to open
family owned banks. The first son, Amshel Mayer stayed in Frankfurt to
manage the hometown bank. The second son Solomon was sent to Vienna. The
third son Nathan was sent to London, and at age 21, in 1798. The fourth
son Karl went to Naples, and the fifth son went to Paris.
The Rothschild’s and the Schiff’s shared a house and both families would play a major role in European history and in the U.S.
When Napoleon chased Prince William of Hess Cassel into exile, he
sent 500,000 pounds to Nathan Rothschild with instructions for Nathan to
buy consoles, also known as British government bonds. But, Nathan used
the money for his own purposes, investing in war-time opportunities.
When William returned after the Battle of Waterloo, he summoned
Rothschild and demanded his money back. Rothschild paid the money back
with interest, but kept all the profits made using Williams money.
By the mid 1800s the Rothschild’s dominated European banking and were
the wealthiest family on earth. The Rothschild’s financed Cecil Rhodes
making it possible for him to have a monopoly over the diamond and gold
fields of south Africa. In the U.S. they financed the Harriman’s, and
the Vanderbilt’s in railroad, and the press, and Carnegie in the steel
industry among many others.
During WWI, J.P. Morgan was thought to be the richest man in the
U.S., but after his death is was discovered that he was only a
lieutenant of the Rothschild’s. Once Morgan’s will was made public, it
was discovered that he owned only 19% of J.P. Morgan companies. By 1850
James Rothschild the heir of the French Rothschild family was said to be
worth 600 million French Franks. 150 million more than all the other
banks in Europe combined.
VII. The American Revolution.
By the mid 1700s Britain had reached its height of power around the
world. But, Britain had fought four costly wars since the creation of
its privately owned central bank the Bank of England, which was lending
money at high interests to finance war related debts. The British
parliament was borrowing heavily from the bank. By the mid 1700s the
government debt was 140 million pounds, a staggering number at that
time. Consequently, the British government embarked on a new program of
trying to raise revenue on the American colonies in order to pay the
interest due to the bank. But, In the U.S., the scourge of a privately
owned central bank had not yet hit the colonies.
In the U.S. there was a severe shortage of precious coins to pay for
goods, so the early colonists experimented with printing their own paper
money. Benjamin Franklin was a supporter of the colonies printing their
own money. In 1757 Franklin was sent to London and stayed there for
seventeen years until the start of the American Revolution. During this
period the colonies began to distribute their own money known as
Colonial Scrip. The endeavor was successful and provided a reliable
means of exchange and helped to provide a feeling of unity between the
colonies. The paper money was debt free and printed in the public
interest and not backed by gold or silver coin. It was a total fiat
currency.
When officials in England asked Franklin how he could account for the
new-found prosperity of the colonies. Franklin replied, “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.”
This was common sense to Franklin but the impact it had on the Bank
of England was profound. Parliament immediately passed the currency act
of 1774. This prohibited colonial officials from issuing their own money
and ordered them to pay all future taxes in gold or silver coins. This
forced the colonies on a gold and silver standard. Franklin wrote in his
autobiography, “In one year, the conditions were so reversed that the
era of prosperity ended, and a depression set in, to such an extent that
the streets of the Colonies were filled with unemployed.” Franklin
stated this was the real cause of the American revolution. 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 the colonists to get power to issue their own money
permanently out of the hands of George III and the international bankers
was the PRIME reason for the Revolutionary War.”
By the time the first shots were fired on April 19th, 1775 the
colonies were drained of gold and silver coins through British taxation.
As a result the constitutional government began to print its own money
to finance the war. At the start of the war the U.S. money supply was 12
million dollars. By the end of the war it was nearly 500 million. As a
result the currency was virtually worthless. Shoes sold for 5000 dollars
a pair. Colonial Scrip had worked because just enough was printed to
facilitate trade. George Washington lamented, “A wagon load of money
will scarcely purchase a wagon load of provisions.”
Today those that support a gold backed currency point to this period
of the revolution to demonstrate the pitfalls of a fiat currency, but
the same currency had worked so well during times of peace that the Bank
of England had Parliament outlaw it.
VIII. The Bank of North America.
Towards the end of the revolution the Continental Congress met at
Independence Hall in Philadelphia to find a way to raise desperately
needed money. In 1771, they allowed Robert Morris, their financial
superintendent to open a privately owned central bank. Morris was a
wealthy man who had grown richer during the war by trading in war
materials.
The new bank, the Bank of North America was modeled after the Bank of
England. It was allowed to practice fractional reserve banking. This
means it could lend money the bank didn’t have and also charge interest
on it.
Incidentally, if you or I were to do that we’d be charged with fraud, which is a felony.
The banks private charter called for investors to put up an initial
400,000 dollars. However, Morris was unable to raise the money, so he
used his political influence to have gold deposited in the bank, which
had been loaned to America by France. Morris then loaned the 400,000 to
himself and his friends and to reinvest in shares of the bank. This
private bank was then given a monopoly over the American currency.
Soon the dangers became clear, as the value of the American currency
continued to plummet. As a result, in 1775 the banks charter was not
renewed. The leader of the effort to kill the bank was William Findley
of Pennsylvania. Findley stated, “The institution, having no principle
but that of avarice, will never be varied in its object, to engross all
that wealth, power ad influence of the state.”
The men behind the Bank of North America included Alexander Hamilton,
Robert Morris, and the banks president Thomas Wiling, did not give in.
Only six years later Hamilton, the then secretary of the treasury, and
his mentor Morris pushed a new bill through legislation for another
privately owned bank. This new bank was called the First Bank of the
United States. Thomas Wiling served as the banks president.
The players in the fraudulent scheme against the American people
remained the same. The only thing that had changed was the name of the
bank.
IX. The Constitutional Convention.
In 1787 colonial leaders assembled to replace the Articles of
Confederation. Both Thomas Jefferson and James Madison remained
steadfastly unmoved toward a privately owned bank. They had seen the
problems caused by the Bank of England.
Jefferson stated, “If the American people ever allow private banks to
control the issue of their currency, first by inflation, then by
deflation, the banks and the corporations which grow up around them will
deprive the people of all property until their children wake up
homeless on the continent their fathers conquered.”
During the debate over the future monetary system another one of the
founding fathers, Gouvernor Morris castigated the motivations of the
owners of the Bank of North America. Gouvernor Morris was head of the
committee that wrote the final draft of the Constitution. Morris knew
the motivations of the bank, as his old boss Robert Morris, and
Alexander Hamilton were the ones who had presented the original plan for
the Bank of North America to the Continental Congress during the last
year of the revolution. In a letter he wrote to James Madison on July
2nd 1787, Gouvernor Morris revealed what was really going on, “The rich
will strive to establish their dominion and enslave the rest. They
always did. They always will. They will have the same effect here as
elsewhere, if we do not, by the power of government, keep the in their
proper spheres.”
Despite the defection of Gouvernor Morris from the ranks of the
banks, Hamilton, Robert Morris, Thomas Wiling and their European backers
were not about to throw in the towel. They convinced the bulk of the
delegates at the Constitutional Convention not to give Congress the
power to issue paper money. Most of the delegates were still aware of
the paper currency problems that arose during the issuance of paper
currency during the revolution. The had apparently forgotten how well
Paper Scrip had worked prior to the war. But, the Bank of England had
not and would not stand for the Americans to print their own money
again. So, the Constitution remains silent on this matter. This defect
left the door open for the money changers, just as they had planned.
X. The First Bank Of The United States.
Only three years after the signing of the new constitution, the newly
appointed, first secretary of treasury, Alexander Hamilton proposed a
bill calling for a new privately owned central bank. This bill was
brought to Congress in the same year that Amshel Rothschild made a
pronouncement from his flagship bank in Frankfurt. “Let me issue and
control a nation’s money and I care not who writes the laws.”
Alexander Hamilton was a tool of the international banker. One of his
first jobs after graduating from law school, in 1782 was as an aide to
Robert Morris the head of the Bank of North America. A year before
Hamilton had written a letter to Morris saying, “A national debt, if it
is not too excessive will be to us a national blessing.”
Congress passed the banking bill proposed by Hamilton and gave it a
twenty year charter. The new bank was to be called, the First Bank of
the United States.
The bank was given a monopoly on printing U.S. currency, even though
80% of its stock was held by private investors. The other 20% was
purchased by the U.S. government. The reason was not to give the
government a piece of the profits, it was a scheme to provide the cash
needed for the other 89% owners. As with the old Bank of North America
and the Bank of England, the stock holders never paid the full amount of
their shares. The U.S. government put up the private shareholders
initial two million dollars in cash and then through fractional reserves
made loans to its charter investors so they could come up with the
remaining 8 million dollars needed for this risk free investment. The
name of the bank was deliberately chosen to hide the fact that it was
privately controlled, and like the Bank of England, the names of the
private investors were never revealed. However, it was well-known that
the Rothschild’s were the driving power behind the Bank of the United
States.
The bank was sold as a way to stabilize the nations currency and to
control inflation. However, over the first five years, the U.S.
government borrowed 8.5 million dollars from the Bank of the United
States and over that same five-year period, prices rose by 72%.
Jefferson as the new secretary of state watched the borrowing with
sadness and frustration, unable to stop it. Jefferson wrote, “I wish it
were possible to obtain a single amendment to our Constitution taking
from the federal government their power of borrowing.”
Millions of Americans feel the same way today as they helplessly watch Congress borrow the U.S. economy into oblivion.
XI. Napoleon’s Rise To Power.
The Bank of France was organized in 1800 in the same manner as the Bank of England.
Napoleon decided France had to break free of debt and he never
trusted the Bank of France. Napoleon declared when the government relied
on the bankers for money, the bankers, not the political leaders were
on control of the government. “The hand that gives is above the hand
that takes. Money has no motherland; financiers are without patriotism
and without decency; their sole object is gain.”
Back in the states, Thomas Jefferson narrowly defeated John Adams to
become the third president of the U.S. BY 1803, Jefferson and Napoleon
had struck a deal. The U.S. would give Napoleon three million dollars in
gold in exchange for a huge piece of land west of the Mississippi
river. This is known as the Louisiana purchase. With that three million
dollars Napoleon forged and army and set off to conquer Europe. The Bank
of England quickly rose to oppose Napoleon, financing every nation in
his path reaping enormous war profits. Prussia, Austria and Russia all
went into debt in a futile attempt to stop Napoleon. Four years later
with the French army in Russia, Nathan Rothschild personally took charge
to smuggle a supply of gold through France to finance and attack on
France by the Duke of Wellington from Spain. Wellington’s attack from
the south and other defeats eventually caused Napoleon to abdicate and
Louis the Eighteenth was crowned king. Napoleon was exiled to Alba a
tiny island off the coast of Italy. While Napoleon was in exile and
temporarily defeated by England through the financial support of the
Rothschild’s, America was trying to break free of its central bank as
well.
XII. Death Of The First Bank Of The United States.
In 1811 a bill was given to Congress to renew the Bank of the U.S.
The debate was heated and representatives of Pennsylvania and Virginia
passed resolution asking Congress to kill the bank. The press of the day
openly called the bank a swindle, a vulture, a viper and a cobra. Oh,
to have an independent press once again in America. A Congressman named
P.B. Porter attacked the bank from the floor saying, “If the bank’s
charter was renewed Congress would have planted in the bosom of this
Constitution a viper, which one day or another would sting the liberty
of this country to the heart.”
Nathan Rothschild warned that the U.S. would find itself involved in a
most disastrous war if the banks charter were not renewed. The renewal
bill was defeated by a single vote in the house, and was deadlocked in
the senate. At this time America’s fourth president was in the
Whitehouse, James Madison. Madison, like Jefferson was a staunch
opponent of the bank, his vice president George Clinton broke the tie in
the senate and sent the bank into oblivion. Within five months England
attacked the U.S. and the war of 1812 was on. But, the British were
still fighting Napoleon, so the war ended in a draw in 1814. The money
changers were down, but they were far from out.
It would take only another two years to bring back their bank, bigger and stronger than ever.
XIII. Waterloo.
Nothing in history reflects the ingenuity in the Rothschild family in their control of the British stock market after Waterloo.
In 1815 Napoleon escaped exile and returned to Paris. The French
soldiers were sent to capture him, but he was such a charismatic figure
that the soldiers, instead, rallied around their old leader and hailed
him as their new emperor. In March of 1815 Napoleon equipped a new army
that was defeated less than ninety days later at Waterloo. Some writers
suggest that Napoleon borrowed five million pounds from the Bank of
England to finance his new army, but it appears these new funds actually
came from the Ubard Banking House in Paris. From this point on it was
not unusual for privately owned banks to finance both sides of a war.
Why would a central bank finance both sides of a war? Because war is
the biggest debt generator of them all. A nation will borrow any amount
for victory. The ultimate loser is given enough financing for the hope
of victory, while the ultimate winner is given just enough to win. Such
loans are usually conditioned upon the guarantee the victor will honor
the debt of the vanquished.
At Waterloo, Napoleon suffered his final defeat but not before
thousands of French and Englishmen gave their lives. 74,000 French
troops met 67,000 British and other European nation troops. The outcome
was in doubt. Nathan Rothschild planned to use the opportunity of the
outcome of the war to try to seize control of the British stocks and
bonds markets of England. Rothschild stationed a trusted agent named
Rothworth on the banks of the north side of the battlefield close to the
English channel.
Once the battle had been decided Rothworth took off for the channel
and delivered the news to Rothschild, before Wellington’s own courier.
If Wellington had been defeated and Napoleon was loose on the continent
again, Britain financial situation would become grave. Rothschild
hurried to the stock market and took his usual position. With all eyes
watching Rothschild, he began to sell all his shares. Other nervous
investors observed Rothschild and panicked, this could only mean that
Wellington lost to Napoleon. The market plummeted and all investors were
selling their consoles and other British bonds. Prices dropped sharply.
But, Rothschild began to secretly buy up consoles through his agents
for pennies on the dollar, for their worth only hours before. Soon
Nathan Rothschild dominated the bond market and the Bank of England as
well. By the mid 1800s the Rothschild’s were the richest family in the
world. The rest of the 19th Century was known as the age of the
Rothschild’s.
One hundred years later the New York Times ran a story which said
that Nathan’s grandson had attempted to secure a court order to suppress
a book with the stock market story in it. The Rothschild family claimed
the story was untrue and libelous, but the court denied the Rothschild
family request and ordered the Rothschild to pay all court costs.
XIV. The Second Bank Of The United States.
One year after Waterloo and the Rothschild’s takeover of the Bank of
England, the American congress passed another bill allowing for the
formation of another privately owned bank, the Second Bank of the U.S.
The new banks charter was a copy of the previous banks, with the U.S.
government owning 20% shares in the bank. The shares were paid by the
treasury – tax payer money, up front. Then through the fraudulent
practice of fractional banking, the money was formed into loans with the
loan money being used by the private bankers to purchase the remaining
80% of the bank shares. Just as before, the primary shareholders
remained a secret. However, the largest blocks, about one-third of the
shares were sold to foreigners. The second bank of the U.S. was deeply
rooted in Britain. By 1816, the Rothschild’s had taken control over the
Bank of England, and the new privately held Second Bank of the U.S.
XV. Andrew Jackson: “I Killed The Banks.”
After twelve years of the Second Bank of the U.S., manipulating the
American economy, the American people had had enough. Opponents of the
bank nominated a senator from Tennessee, Andrew Jackson, the hero of the
Battle of New Orleans, to run for president. Initially, no one gave
Jackson a chance to win the presidency. The banks had long been able to
control the political process with money. To the surprise and dismay of
the money changers, Jackson was swept into office in 1828. Jackson was
determined to kill the bank at the first opportunity, and wasted no time
trying. However, the banks twenty year charter didn’t come up for
renewal until 1836. The last year of his second term, if he could
survive that long. During his first term Jackson rooted out the banks
minions from government service. He fired 2000 of the 11000 employees of
the federal government. In 1832 with his reelection approaching, the
banks struck and early blow, hoping Jackson would not want to stir up
controversy. The banks asked Congress to sign a new renewal bill, four
years early. Congress complied, and then sent it to the president for
signing. Jackson vetoed the bill. This veto bill is one of America’s
greatest documents, clearly laying out the responsibility of the
American government towards its citizens, rich and poor.
“It is not our own citizens only who are to receive the bounty of our
Government. More than eight millions 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 bind it to our country
Controlling our currency, 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 its 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.”
In July of 1832, Congress was unable to override Jackson’s veto.
Jackson had to now run for reelection, and took his argument directly to
the people. For the first time in presidential history, Jackson took
his campaign for reelection on the road. His campaign slogan was Jackson
and no bank. The national republican party ran Senator Henry Clay
against Jackson. Despite the fact that the bankers spent more than three
million dollars on Clay’s campaign, Jackson was reelected by a
landslide in November of 1832.
The battle was only beginning. “The hydra of corruption is only
scorched, not dead.” Jackson ordered his new secretary of treasury,
Louis McClain, to start removing the government deposits from the second
bank, and start placing them in state banks. McClain refused to do so.
Jackson fired him, and appointed William J. DeWayne as the new secretary
of the treasury. DeWayne also refused to comply with the president’s
order. Jackson fired him as well and appointed Roger B. Taney to the
office. Taney began withdrawing government money from the banks on
October of 1833. The banks head Nicolas Biddle used his influence to get
the senate to reject Taney’s nomination. Then, in a rare show of
arrogance, Biddle threatened to cause a depression if the bank was not
rechartered. “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.” Biddle admitted that he was going to make money scarce,
and force Congress to restore the bank. “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 recharter of the bank.” Biddle clearly intended to use the money
contraction power of the bank to cause a massive depression, until the
U.S. gave in.
Biddle made good on his threat. The bank began to contract the money
supply be calling in old loans and refusing to extend new ones. A
financial panic ensued, followed by a deep depression. Biddle blamed
Jackson for the crash, saying it was caused by the withdrawal of the
federal funds from the bank. As a result, wages and prices plummeted,
unemployment soared, and businesses went bankrupt. The nation newspapers
blasted Jackson in editorials. The banks threatened to withhold
payments from politicians who refused to support the bank’s position.
Within months Congress formed what was called, the Panic Session. Six
months after Jackson had withdrawn federal money from the privately
owned banks, he was officially censored. The resolution was passed 26-20
and was the first time a president had been censured by Congress.
Jackson lashed out at the bankers, “You are a den of vipers and I intend
to route you out, and by God I will route you out.” If Congress could
raise enough votes, Congress could pass another bill and renew the banks
monopoly over America’s money for another twenty years or more. What
the nation needed was a miracle, and it got one. The governor of
Pennsylvania came out in support of Jackson, and Biddle had been caught
boasting in public about the banks plan to crash the economy. Suddenly,
the tide shifted and in 1834, the House of Representatives voted 124-82
against rechartering the bank. This was followed by a more lopsided vote
to establish a committee to investigate whether the bank had
intentionally caused the crash. When the investigating committee, armed
with a subpoena to examine the banks books, Biddle refused to give them
up. Nor would he allow inspection of correspondence with members of
Congress, related to their personal loans and advances he had made to
them. Biddle also refused to testify before the committee. On January,
8th 1835, Jackson paid off the final installment on the national debt,
which had been necessitated by allowing the banks to issue currency for
government bonds rather than issuing treasury bonds without such debt.
Jackson was the only president to ever pay off the debt.
A few weeks later on January 30th, 1835, an assassin named Richard
Lawrence tried to shoot President Jackson. However, both pistols
misfired. Lawrence was later found not guilty by reason of insanity.
After his release he bragged to friends that powerful people in Europe
had put him up to the task, and promised to protect him if he were
caught.
The following year the banks charter ran out and the Second Bank of
the U.S. ceased functioning as the nations central bank. Biddle was
later arrested and charged with fraud. He was tried and acquitted, but
died shortly thereafter while still tied up in civil suits. It took the
money changers 77 more years before it could undue the damage Jackson
had caused it. When asked what his most important accomplishment had
been, Jackson was quoted as saying, “I killed the bank.”
XVI. Abraham Lincoln: Greenbacks, Bankers and Assassination.
Although Jackson killed the central bank, unfortunately, fractional
reserve banking remained in use by the numerous state chartered banks.
This fueled economic instability in the years before the civil war.
Still the central bankers were out and as a result American thrived as
it expanded westward. The central bankers struggled to regain power of
the bank, but to no avail. Then finally they reverted to the old central
bankers formula of war to create debt and dependency. If they couldn’t
get their bank any other way, America could be brought to its knees by
plunging it into a civil war, just as they had done in 1812 after the
First Bank of the U.S. was not rechartered.
One month after the inauguration of Abraham Lincoln, the first shots
of the Civil War was fired at Fort Sumter South Carolina, on April 12th
1861. Certainly, slavery was a cause of the Civil War, but not the
primary cause. Lincoln knew that the economy of the South was dependent
upon slavery, and so before the Civil War he had no intention of
eliminating it. Lincoln addressed slavery in his inaugural address, “I
have no purpose, directly or indirectly to interfere with the
institution of slavery in the states where it now exists. I believe I
have no lawful right to do so, and I have no inclination to do so.”
Lincoln would continue to insist that the Civil War was not about the
issue of slavery. “My paramount objective is to save the Union, and it
is not either to save or destroy slavery. If I could save the Union
without freeing any slave, I would do it.”
Northern protectionist were using their power to prevent the southern
states from purchasing cheaper goods, and European nations began to
boycott cotton imports from the south. The southern states were in a
double financial bind. They were forced to pay higher prices for the
necessities of life, while their cotton exports plummeted. But there
were other factors at work. The money changers were still infuriated
that they had no control over America’s central bank. America’s
“wildcat” economy had made the nation rich since the money changers lost
control only 25 years earlier. The central bankers used the division
between the North and the South as an opportunity to split this rich new
nation, and to gain control of the central bank once again. Their
intention was to divide and conquer through the use of war. A Civil War.
Otto Von Bismarck the Chancellor of Germany, the man who united the
German states a few years later. “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
United States, 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.”
Within months after the first shots at Fort Sumter, the central
bankers loaned the nephew of Napoleon, Napoleon III of France, 210
million francs to seize Mexico and station troops along the southern
border of the U.S. taking advantage of the states war, to violate the
Monroe Doctrine and to return Mexico to colonial rule. No matter what
the outcome of the Civil War, a weakened America, heavily indebted to
the central and international bankers, would open up Central, and South
America to European colonization and domination. This was the very thing
the Monroe Doctrine had forbidden in 1823.
During this same time, Britain moved 17,000 troops into Canada and
positioned them menacingly on the U.S. northern border. The British
fleet went on war alert, should their quick intervention be called for.
Lincoln was in a double bind, and agonized over the fate of the Union.
There was a lot more to the war, than the differences between the
northern and southern states. That is why Lincoln’s emphasis was always
on Union, and not just merely the defeat of the South. But, Lincoln
needed money to win, and in 1861 Lincoln and his secretary of treasury
Solomon P. Chase, went to New York to apply for the necessary loans. The
money changers anxious to see the Union fail, offered loans at 36%
interest. Lincoln refused to accept those rates and returned to
Washington.
Lincoln turned to an old friend Colonel Dick Taylor of Chicago and
put him on the problem of financing the war. During on meeting Taylor
told Lincoln, “Just get Congress to pass a bill authorizing the printing
of full legal tender treasury notes and pay your soldiers with them and
go ahead and win your war with them also.” Lincoln asked if the people
of the U.S. would accept the notes Taylor said, “The people or anyone
else will not have any choice in the matter, if you make them full legal
tender. They will have the full sanction of the government and be just
as good as any money; as Congress is given that express right by the
Constitution.” Between 18662-1863, Lincoln printed up 400 million
dollars worth of new bills. In order to distinguish them from other bank
notes in circulation he printed them in green ink on the back side.
Thus, the notes became known as green backs. With this new money,
Lincoln paid the troops, and bought their supplies. During the course of
the war nearly 450 million dollars in green backs were printed at no
interest to the federal government. Lincoln understood who was really
pulling the strings and this is how he explained his rationale, “The
Government should create, issues and circulate all of the credit needed
to satisfy the spending power of the Government and the buying power of
the consumers. The privilege of creating and issuing money is not only
the supreme prerogative of Government, but is the Government’s greatest
creative opportunity. By the adoption of these principles, the taxpayers
will be saved immense sums of interest. Money will cease to be the
master and become the servant of humanity.”
An editorial in the London Times explained the bankers attitude
toward the greenbacks. “If this mischievous financial policy, which has
its origin in North America, shall become underrated 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.”
The scheme was so effective that in 1863, federal and confederate
troops began to mass for the decisive battle of the Civil War. The
treasury was in need of further authority to issue more green backs.
Lincoln allowed the bankers to push through the National Bank Act. These
new banks would operate under a tax-free status, and collectively have
the exclusive monopoly power to create the new form of money – bank
notes. Though green backs continued to circulate, there numbers were not
increased. Most importantly, the entire U.S. money supply would be
created out of debt where bankers would be buying U.S. government bonds,
and issuing them for reserves for bank notes. John Kenneth Galbraith
wrote, “In numerous years following the war, the Federal government ran a
heavy surplus. It could not however, pay off its debt, retire its
securities, because to do so meant there would be no bonds to back the
national bank notes. To pay off the debt was to destroy the money
supply.”
Later in 1863 Lincoln received unexpected help from Czar Alexander II
of Russia. The Czar, like Bismarck in Germany knew what the
international money changers were up to, and steadfastly refused to
allow them to set up a central bank in Russia. If America survived, and
was able to remain out of the crutches of the bankers, the Czar’s
position would remain secure. If the bankers were successful in dividing
America, and giving the pieces back to Britain and France, and both
nations back to the control of the central banks, eventually they would
threaten Russian again. So, the Czar gave orders that if either Britain
or France, actively intervened by giving aid to the South, Russia would
consider such action a declaration of war. Alexander II then sent part
of his naval fleet to port in San Francisco.
Lincoln was reelected the following year in 1864. Had he lived he
surely would have killed the national banks money monopoly extracted
from him during the war. In November of 1864, Lincoln wrote a friend the
following note, “The money power preys upon the nation in times of
peace and conspires against it in times of adversity. It is more
despotic than monarchy, more insolent than autocracy, more selfish than
bureaucracy.” Shortly before Lincoln was murdered, his former secretary
Salmon P. Chase, bemoaned his role in helping secure the passage of 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.”
On April 14th 1865, just forty-one days after Lincoln’s second
inauguration, and just five days after Lee surrendered to Grant, Lincoln
was shot by John Wilkes Booth at Ford’s Theater. Otto Van Bismarck, the
Chancellor of Germany lamented the death of Abraham Lincoln, “The death
of Lincoln was a disaster for Christendom. There was no man in the
United States great enough to wear his boots. I fear that foreign
bankers with their craftiness and tortuous tricks will entirely control
the exuberant riches of America, and use it systematically to corrupt
modern civilization. They will not hesitate to plunge the whole of
Christendom into wars and chaos in order that the earth should become
their inheritance.” Bismarck well understood the bankers plan, and
allegations that the international bankers were responsible for
Lincoln’s assassination surfaced 70 years later in 1934.
Gerald G. McGeer, a popular and well-respected attorney revealed the
stunning charge in a five-hour speech before the Canadian House of
Commons, blasting Canada’s debt based money system. During the height of
the depression McGeer stated that he could end the depression, which
was ravaging Canada as well. McGeer had obtained evidence that was
deleted from the public record, that was provided to him by secret
service agents that had attended the trial of John Wilkes Booth. Booth
was a mercenary working for the international bankers. According to an
article of the Vancouver Sun, on May the 2nd, 1934 wrote, “Abraham
Lincoln was assassinated through the machinations of a group
representative of the international bankers who feared the United States
President’s national credit ambitions and the plot was hatched on
Toronto and Montreal. There was only one group in the world at that time
that desired the death of Lincoln. They were the group that was opposed
to his national currency program, and had fought him throughout the
entire Civil War on his policy of green back currency. McGeer stated
that the international bankers not only wanted to reestablish a federal
central bank, but also wanted to debase America’s currency on gold they
controlled. What this meant was the bankers wanted to put America on a
gold standard. Lincoln had done just the opposite when he issued green
backs, which were based purely on the good faith and credit of the U.S.
nation. McGeer also wrote, “They were the men interested in the
establishment of the Gold Standard money system 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 in the United States. Within eight years after
Lincoln’s assassination silver was demonetized and the Gold Standard
money system set up in the United States.” Not since Lincoln has the
United States issued debt free U.S. notes.
In another act of folly and ignorance, the 1994 Regal Act actually
authorized the replacement of Lincoln’s green backs with debt based
notes. In other words, green backs were in circulation in the U.S. until
1994.
Why is silver bad for the bankers, and gold good? Because silver was
plentiful in the U.S. and very hard to control. Gold was, and always had
been scarce. Historically, it as always been easy to manipulate the
value of gold, but silver has always been more than 15 times more
abundant.
XVII. The Return Of The Gold Standard.
With Lincoln out-of-the-way, the money changers next objective was to
gain complete control over America’s money. This was no easy task with
the opening of the American west, silver had been discovered in huge
quantities and Lincoln green backs remained very popular. Despite this,
the bankers continued to attack Lincoln’s green backs that continued to
circulate in the U.S. W. Cleon Skousen wrote, “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.”
On April 12th 1866, nearly one year to the day of Lincoln’s
assassination, Congress began to work for the interest of the
international banking interests, passing the Contraction Act,
authorizing the secretary of the treasury to begin retiring some of the
green backs that were in circulation, and thereby contract the money
supply. Authors Theodore R. Thoren and Richard F. Warner explained the
results of the money contraction in their book, The Truth In Money Book.
“The hard times that occurred after the Civil War could have been
avoided if the green back legislation had continued as president Lincoln
had intended. Instead, there were a series of manufactured money
panics, known as recessions, which put pressure on Congress to enact
legislation to put the banking system under the bankers exclusive
control. Eventually, the Federal Reserve Act was passed on December,
23rd, 1913. Under this act the money changers once again gained control
of the central banking system, and American currency backed by gold.
There strategy was to cause a series of panics through recessions, and
to convince the American people who only centralized control of the U.S.
money supply could provide economic stability. The second step was to
remove so much money from the system that most Americans would be so
desperately poor that they didn’t care or would be too weak to oppose
the bankers.
In 1866 there was about 1.8 billion dollars in currency about 50.46 per capita.
In 1867 half a billion dollars had been removed from circulation resulting in 44.00 per capita.
By 1876 America’s money supply had been reduced to only 600 million dollars, and only 14.60 per capita remained in circulation.
In 1886 the money supply continued to be reduced to only 400 million
in supply with only 6.67 per capita remained in circulation. A 760% loss
in buying power over 20 years.
Today economists attempt to sell the idea that recessions and
depressions are a natural part of “the business cycle.” The truth is the
money supply is manipulated by bankers, just as it was before and after
the Civil War.
How did the money supply become so scarce? Simply, loans were called
in, and no new loans were issued. In addition, silver coins were melted
down. In 1872 a man named Ernest Seyd was given 100,000 pounds, about
500,000 dollars by the Bank of England and sent to America to bribe
Congressmen to get silver demonetized. He was told that if that was not
sufficient, to draw an additional 100,000 pounds, or as much as would be
necessary. The next year Congress passed the Coinage Act of 1873, with
Seyd actually drafting the legislation. In 1874, Said admitted who was
behind the scheme. “I went to America in the winter of 1872-1873,
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 1876, only three years later with one-third of America’s workforce
unemployed, the population was growing restless. People desired a
return to the green back money system, or a return to the silver money,
anything that would make money more plentiful. That year Congress
created the U.S. Silver Commission to study the problem. Their report
clearly blamed the money retraction on the international money bankers.
The report compared the deliberate money contraction after the Civil War
to the fall of the Roman Empire. “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. During the
Christian era the metallic money of the Roman Empire amounted to one
billion, eight hundred million. By the end of the 15th 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.
U.S. Silver Commission. Despite this report, Congress took no action and
the following year, in 1877, the starving masses rioted from Pittsburg
to Chicago. The torches of starving vandals lit up the sky across
America. The bankers huddled to decide what to do. They decided to hang
on. Now that they were back in power, they were not about to give it up,
and at the meeting of the American Banking Association, they urged
their membership to do everything in their power to put down the notion
of a return to green backs. The ABA secretary James Beul authored a
letter, which blatantly called on the banks to subvert not only
Congress, but also the press. “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 Congressmen at once and engage him to support our
interest that we may control legislation.” As political powers tried to
push for change, the press, working with the bankers, tried to turn the
American people away from the truth. In 1878, the New York Tribune
wrote, “The capital of the country is organized at last and we will see
whether Congress will dare to fly in its face.” But, it didn’t work
entirely. On February, 28 1878, Congress passed the Sherman Law,
allowing the minting of a limited amount of silver dollars ending the
five-year hiatus. This did not end the gold backing of the currency, nor
did it completely free silver. As a result, the bankers finally freed
up money for loans and the post-Civil War depression had finally ended.
Three years later the American people would vote James Garfield as
their 20th president, but he would survive a mere 200 days in office
before being assassinated. Garfield had understood how the economy was
being manipulated. As a congressman, Garfield had been a chairman of the
appropriation committee and had been a member of banking and currency.
After his inauguration he slammed the money changers publicly. “Whoever
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.” Within a few weeks of making this statement, on
July 2nd, 1881, Garfield would be assassinated.
XVIII. Free Silver: Crown Of Thorns Cross Of Gold.
In 1891, the money changers prepared to take the American economy
down again. There method and motive was laid out in shocking clarity
discovered in a memo sent out to American Banking Association members.
This memo called for bankers to create a depression on a certain date
three years in the future. According to Congressional Record dated April
29, 1913, “On September 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. These depressions could be controlled because America was on
the gold standard, because when gold is scarce it becomes one of the
easiest commodities to manipulate.
By 1896 the issuance of more silver money had become the main issue
during the presidential campaign. Williams Jennings Bryan a senator from
Nebraska ran for presidency on the Free Silver Issue. At the Democratic
Convention in Chicago Bryan made an emotional speech, which won him the
nomination entitled, Crown of Thorns and Cross of Gold. Only 36 years
old at the time, this speech is widely regarded as one of the most
important orations ever made at a political convention. At the end of
the 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 lavishly supported the republican candidate William
McKinley who favored the gold standard. The resulting contest was one of
the most fiercely contested presidential races in American political
history. Bryan made over 600 speeches in 27 states. The McKinley
campaign got manufacturers and industrialist to inform their employees
to believe that if Bryan were elected all factories and plants would
close and there would be no work. The bankers ploy worked and McKinley
beat Bryan by a small margin. Bryant ran for president again in 1900 and
again in 1908, falling short each time. During the 1912 Democratic
convention Bryan was a powerful figure who would help Woodrow Wilson win
the nomination. When Wilson became president, he appointed Bryan as
secretary of state, but Bryan soon became disenchanted with the Wilson
administration. Bryan served only two years in the Wilson administration
before resigning in 1915, over the highly suspicious sinking of the
Lusitania, which was the event to drive America into World War One.
Although William Jennings Bryan never gained the presidency, his efforts
delayed the money changers for 17 years, from obtaining their next
goal, a new privately owned central bank for America.
XIX. J.P. Morgan And The Crash of 1907.
During the early 1900′s men like J.P. Morgan led the charge to
reinstate a privately held central bank. One final panic would focus the
American’s attention on the supposed need for a newly chartered central
bank. The rationale was that only a central bank could prevent bank
failures.
Morgan was by far the most powerful banker in America, and a
suspected agent for the Rothschild’s. Morgan had helped finance John D.
Rockefeller’s Standard Oil empire, and helped finance the monopolies of
Edward Harriman in railroads, Andrew Carnegie in steel, and others in
numerous industries. J.P. Morgan’s father Julius Morgan had been
America’s financial agent to the British. After his father’s death J.P.
Morgan took on a British partner Edward C. Grenfell, a long time
director of the Bank of England. In fact, on his death Morgan’s estate
contained only a few million dollars. The bulk of securities that
everyone thought he had owned, were in fact, owned by foreign interests.
In 1902 President Theodore Roosevelt allegedly went after Morgan and
their conspirators to break up their industrial monopolies using the
Sherman Anti-trust Act. In reality, Roosevelt did little to interfere
with the growing monopoly of the industrialist bankers and their
surrogates. Example, Roosevelt supposedly broke up the Standard Oil
monopoly, but it wasn’t broken up at all, it was merely divided up into
seven corporations, all still controlled by the Rockefellers. The public
was made aware of this by political cartoonists like Thomas Nast who
referred to the bankers as the money trusts.
In 1891, a British labor leader made the following statement on the
subject of the Rothschilds, “This blood-sucking crew has been the cause
of untold mischief and misery in Europe during the present century, and
has piled up its prodigious wealth chiefly through fomenting wars
between States which ought never to have quarrelled. Whenever there is
trouble in Europe, wherever rumours of war circulate and men’s minds are
distraught with fear of change and calamity you may be sure that a
hook-nosed Rothschild is at his games somewhere near the region of the
disturbance.” Comments like this worry the Rothschilds’ and towards the
end of the 1800’s they purchased Reuters news agency so they can
exercise control over what the media prints.
By 1907, the year after Teddy Roosevelt reelection, Morgan tried to
push for a central bank again. Using their combined financial muscle,
Morgan and his friends were secretly able to crash the stock market.
Thousands of small banks were vastly over extended, some had reserves
less than one percent, thanks to the principle of fractional reserves.
Within days bank runs were common across the nation. Now Morgan stepped
into the public arena and promised to prop up the faltering American
economy, by supporting failing banks with money he manufactured out of
nothing. It was an outrageous proposal, far worse than even fractional
reserve banking, but Congress let him do it. Morgan printed 200 million
dollars in completely worthless, private money and bought things with
it, paid for services with it and sent some of it to his branch banks to
lend out at interest. His plan worked and soon the public regained
their confidence in money and quit hording their currency. However, as a
result banking power was further consolidated into the hands of a few
large banks. By 1908 the panic was over, and Morgan was hailed as a hero
by the president of Princeton University. A man by the name of Woodrow
Wilson. “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.” Economic textbooks would later claim that the
creation of the Federal Reserve system was a direct result of the panic
of 1907. “With the alarming epidemic of bank failures the country was
fed up once and for all with the anarchy of unstable private banking.”
But, Minnesota congressman Charles A. Lindbergh Sr. would later explain
that the panic of 1907 was really nothing more than a scam perpetrated
by J.P. Morgan and other banking interests. “Those not favorable to the
money trust could be squeezed out of business and the people frightened
into demanding changes n the banking and currency laws which the Money
Trust would frame.”
Since the passing of the National Bank Act of 1863, the money
changers had been able to create a series of booms and busts. The
purpose was not only to fleece the American public of their property,
but to later claim the banking system was so unstable that it had to be
consolidated into a central bank once again.
XX. Jekyll Island: The Aldrich Bill.
After the crash, Theodore Roosevelt in response to the crash, signed
into law a bill called the National Monetary Commission. The commission
was to study the banking problem and make a report to Congress. Of
course, the committee was packed with Morgan’s friends and cronies. The
chairman was a man named senator Nelson Aldrich from Rhode Island. Rhode
Island was the location of homes of America’s most wealthiest families.
Aldrich’s daughter married John D. Rockefeller Jr. and together they
had five sons. John, Nelson who would become vice president in 1964,
Lawrence, Winthrop and David, the head of the council of foreign
relations and former chairman of Chase Manhattan Bank. As soon as the
National Monetary Commission was set up, senator Aldrich immediately
embarked on a two-year tour or Europe, where he consulted in length with
the private central bankers in England, France and Germany. The total
cost of his trip was 300,000 USD, an astronomical amount of money in
those days. Shortly after his return on November 22nd 1910 some of the
wealthiest and most influential men boarded his private railroad car and
in the strictest secrecy traveled to Jekyll Island off of the coast of
Georgia. With the group came Paul Warburg, who had been given a 500,000
annual salary to lobby for the passage of a privately owned central bank
in America by the investment firm, Kuhn, Lobe and Co. Warburg’s partner
in this firm was a man named Jacob Schiff, the grandson of the man who
shared the green shield house with the Rothschild family in Frankfurt,
Germany. Schiff was in the process of spending 20 million dollars to
finance the overthrow of the Czar of Russia. These three European
banking families, the Rothschild’s, the Warburg’s and the Schiff’s, were
interconnected in marriage down through the years, just as their
American banking counterparts, the Morgan’s, Rockefeller’s and Aldrich’s
were.
Secrecy was so tight that all seven primary participants were
cautioned to use only first names, to prevent servants from learning
their identities. Years later one participant, Frank Vanderlip the
president of National City Bank of New York, and a representative of the
Rockefeller family confirmed the Jekyll Island trip in a February 9th
addition of the Saturday Evening Post. “I was as secretive – indeed, as
furtive as any conspirator. Discovery, we knew, simply must not happen,
or else all our time and effort would be wasted. If it were to be
exposed that our particular group had got together and written a bank
bill, that bill would have no chance whatever of passage by Congress.”
The participants had gone to Jekyll Island to solve one problem, and
that problem was, how to bring back a privately owned central bank. But
there were other problems that needed to be addressed as well. First,
the market share of the big national banks were shrinking fast. In the
first ten years of the century, the number of national banks had doubled
to over twenty thousand. By 1913, only 29% of all banks were national
banks and they held only 57% of all deposits. Senator Aldrich would
later admit in a magazine article, “Before the passage of this Act, the
New York Bankers could only dominate the reserves of New York. Now, we
are able to dominate the bank reserves of the entire country.” In the
mind of the plotting conspirators, something had to be done to bring
these new banks under their control. As John D. Rockefeller stated,
“Competition is sin.” Secondly, corporations were so strong that were
beginning to finance their expansions out of profits, instead of taking
out huge loans from large banks. In the first ten years of the new
century, 70% of corporate spending came from profits. In other words,
American industry was becoming independent of the money changers and
that trend had to be stopped. All the participants new that all these
problems could be resolved, but perhaps their biggest problem would be a
public relation problem, and that was the name of the new bank.
Aldrich believed the word bank should not appear in the bills name.
Warburg wanted to call the “legislation” the National Reserve Bill. The
idea was to give the impression that the purpose of this new bill was to
conceal the character of a new privately held central bank. Due to
Aldrich’s large ego, he insisted the bill be called the Aldrich Bill.
After nine days of the bankers conspiring to take over America’s money,
the group dispersed. One thing the group did agree on was that the new
bank would be similar to the old privately held central Bank of the
United States, that it would be given a monopoly over the U.S. currency
and given the power to create that money out of nothing.
How does the Fed create money out of nothing? It is a four step
process, but bonds must first be discusses. Bonds are a promise to pay
for government I.O.U.’s. People buy bonds to get a secure rate of
interest and at the end of the term of the bond the government repays
the bond, plus interest and the bond is then destroyed. There are today
about 3.6 trillion dollars worth of these loans or bonds in existence
today.
Creating Money.
Step One. The Federal Open Market Committee approves the purchase of U.S. Bonds on the open market.
Step Two. The Bonds are purchased by the Fed from whoever is offering them for sale on the open market.
Step Three. The Fed pays for the bond with
electronic credits to the seller’s bank, these electronic credits are
based on nothing. The Fed merely creates them out of nothing.
Step Four. The bank uses these deposits as reserves.
They can loan out over ten times that amount of their reserves to new
borrowers all at interest.
In this manner a Fed purchase of a million dollar in bonds, gets
turned into ten million dollars in bank accounts. The Feds in affect
create 10% of this phony money that is not backed by anything, and the
banks then create the other 90%, which is not backed by anything. To
reduce the amount of money in the economy, the process is simply
reversed. The Feds sell bonds to the public, and the money flows out of
the purchasers bank, and loans must be reduced by ten times the amount
of the sale, so a Fed sale of a million dollar bond, results in ten
million dollars of less money in the economy.
The next question that must be asked is, how does all of this benefit
the bankers who’s representatives conspired on Jekyll Island?
- It misdirected banking reform from proper solutions.
- It prevented a proper debt free currency like the greenbacks from making a comeback. The bond based system of government finance forced on Lincoln after he created greenbacks was now cast in stone.
- It delegated to the bankers the right to create 90% of the nation’s money supply, based on merely fractional reserves, which the bankers then loan out at interest.
- It centralized overall control of the U.S. nations money supply in the hands of a few men.
- It established a central bank with a high degree of independence from effective political control. Soon after its creation, the Feds contraction of money in the early 1930′s would cause the Great Depression, and this independence has been enhanced ever since that period, through additional loss.
In order for the Federal Reserve to fool the public into believing
the Fed was a governmental agency, and that the government would retain
control over the bank, the planners called for the new central bank to
be overseen by a board of governors, appointed by the president of the
U.S., and approved by the senate. But, in reality, all the bankers had
to do was be sure that their men got appointed to the board of
governors. An easy enough task, since bankers have money, and money buys
influence over politicians.
When the participators of the secretly held meeting at Jekyll Island
returned home, the publicity blitz was on. The big New York bankers put
together an educational fund of five million dollars to finance
professors at respected universities to support the new bill. Woodrow
Wilson was one of the first to jump on the band wagon. But, the Aldrich
bill was recognized for what it was and it was quickly recognized as the
bankers bill. A bill that would only become known as the money trust.
As congress Lindberg stated during the bills debate, “The Aldrich Plan
is the Wall Street Plan. 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.” Rep. Charles A.
Lindbergh (R-MN).
The bankers saw that they didn’t have enough congressional votes to
have the Aldrich Bill passed, therefore the bill was never brought to a
vote. The bankers were not defeated however, they quietly decided to
move toward financing a new effort, which was to finance Woodrow Wilson
as the democratic nominee. Wall Street financier Bernard Baruch was put
in charge of Wilson’s education. Historian James Perloff wrote, “Baruch
brought Wilson to the Democratic Party Headquarters in New York in 1912,
leading him like one would lead a poodle on a string. Wilson received
an indoctrination course from the leaders convened there.”
Now, the stage was set and the money changers were poised to install
their privately owned central bank once again. The damage President
Jackson had done 76 years earlier, had only been partly repaired with
the passing of the National Banking Act during the Civil War. Since then
the battle raged on for decades. The Jacksonians became the
greenbackers, who became the hardcore backers of William Jennings Bryan.
With Bryan leading the charge, the opponents of the money changers,
ignorant of Baruch’s tutelage now threw themselves behind the democratic
representative Woodrow Wilson. The Americans and Bryan would soon be
betrayed.
XXI. The Federal Reserve Act Of 1913: Revisited.
During the democratic campaign the supporters of Woodrow Wilson
pretended to oppose the Aldrich Bill. As Rep. Louis McFadden, a democrat
and chairman of the House of Banking and Currency Committee explained
it twenty years after the fact, “The Aldrich Bill was condemned in the
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 institution of the “king’s bank” to control
us from the top downward and to shackle us from the cradle to the
grave.”
Once Wilson was elected Morgan, Warburg, Baruch and other bankers
hatched a new plan, which Warburg named the Federal Reserve System. The
Democratic leadership hailed the new bill known as the Glass-Owen Bill
as something radically different from the Aldrich Bill, but in fact the
bill was virtually identical in every important detail. So vehement were
the democrats in denial of the similarities of the bill, that Warburg
the writer of both bills, he had to step in and reassure his paid
friends in Congress that the two bills were identical. “Brushing aside
the external differences affecting the shells, we find the kernels of
the two systems very closely resembling and related to one another.”
Warburg’s admission was for private consumption only. Publicly the money
trust used Aldrich and Frank Vanderlip, the president of Rockefeller’s
National City Bank of New York, and one of the Jekyll island seven
secret conspirators, to oppose the new federal reserve system. Years
later in a Saturday Evening Post article, Vanderlip admitted that the
two bills were identical. “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.”
As Congress neared a vote, they called an Ohio attorney named, Alfred
Crozier to testify. Crosier noted the similarities between the Aldrich
Bill and the Glass-Owen Bill. “The bill grants just what Wall Street and
the big banks for twenty-five years have been striving for – private
instead of public control of currency. It (the Glass-Owen Bill) 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.”
During the debate on the bill senators complained that big banks were
using their financial muscle to influence the outcome. “There are
bankers in this country that are enemies of the public welfare,” said
one senator. Despite the charges of fraud and corruption, the bill was
finally snuck through the senate on December 23rd, 1913 after most
senators had left town during the holidays, after being assured by the
leadership that nothing would be done about the bill until Congress was
to revenue after the Christmas recess. On the day the bill was passed,
congressman Lindberg prophetically warned his countrymen that, “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 or
reckoning is only a few years removed. The worst legislative crime of
the ages is perpetrated by this banking bill.” Only weeks earlier
congress had legalized a bill legalizing income tax. Why was the income
tax law important? Because bankers finally had in place a system that
would run up a virtually unlimited federal debt. How would this interest
and principal on this debt be repaid? Keeping in mind this central bank
scheme prints money out of nothing, and that federal government was
small at this time, the federal government existed on tariffs and excise
taxes. Here, just as with the Bank of England, the income payments had
to be guaranteed by direct taxation of the people. The money changers
knew that if they had to rely solely on contributions from the state,
eventually the individual state legislatures would revolt, and either
refuse to pay the interest on their own money or at least bring
political pressure to keep the debt small. Interestingly, in 1875 the
Supreme Court had found a similar income tax law to be unconstitutional.
The Supreme Court even found a corporate income tax unconstitutional in
1909. As a result senator Aldrich supported a constitutional amendment
that would allow an income tax. The proposed XVI Amendment to the
constitution was then sent to legislatures for approval. Some critics of
the Amendment claim it was never ratified by the necessary 3/4 of the
states. In other words, the XVI Amendment may not be a legal attachment
to the U.S. Constitution. However, by 1913, senator Aldrich has pushed
the XVI Amendment through congress. Without the power to tax the people
directly, and bypass the states, the Federal Reserve Bill would be far
less useful to those who wanted to drive American’s deeper and deeper
into debt and servitude of the big bankers, and their interests.
One year after the passage of the Federal Reserve Bill, congressman
Lindbergh explained how the Fed created what we have come to call the
business cycle and how they use it to manipulate business and property
ownership, and to the benefit of the bankers. “To cause high prices, all
the Federal Reserve Board will do will be to lower the rediscount rate,
producing an expansion of credit and a rising stock market, then when
businessmen are adjusted to these conditions, it can check prosperity in
mid-career by arbitrarily raising the rate of interest. It 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
strangest, 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. Already the federal banks have cornered the gold
and gold certificates.” Congressman Lindberg was correct on all point,
however, he hadn’t realized that most European nations had already
fallen prey to bankers decades, or centuries earlier. Congressman
Lindbergh was not the only outspoken critic of the Fed. Congressman
Louis McFadden the chairman of the House Banking and Currency Committee
from 1920-1931 remarked, “The Federal Reserve Act brought about a
super-state controlled by international bankers and international
industrialists acting together to enslave the world for their own
pleasure.” Rep. Louis McFadden (D-PA). McFadden was well aware of the
international bankers role in the formation, manipulation and control of
America’s wealth and the newly formed private central bank, the Federal
Reserve. Another chairman of the House Banking and Currency Committee
in the 1960′s Wright Patman from Texas stated, “In the United States
today we have in effect two governments. We have the duly constituted
Government. Then we have an independent, uncontrolled and uncoordinated
government in the Federal Reserve System, operating the money powers
which are reserved to Congress by the Constitution.” Even the inventor
of electric light, Thomas Edison joined the fray in criticizing the
formation of the Federal Reserve. “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%, where as the currency pays nobody but those who
contribute directly in some useful way. It is absurd to say 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.”
Three years after the passage of the Federal Reserve Act, even the
bankers puppet president Woodrow Wilson began to have second thoughts
about his role in the scheme. “We have become 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 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.” Before his death in 1924, president Wilson realized
the full extent of the damage he had done to the nation when he
confessed, “I have unwittingly ruined my government.”
So, finally the money changers, the bankers that profit by
manipulating the amount of money in circulation, had their privately
owned central bank installed, once again in America. The major
newspapers, which they also owned hailed the passage of the Federal
Reserve Act as a money system that could be scientifically prevented.
The real fact is that depressions, and recessions could now be
scientifically created.
XXII. World War I: Power To Wage War and Profit From It.
Power was now centralized to a large extent on a global scale. Now it
was time for a war. A large, costly and destructive war. The first
world war. To the central bankers, the political issues of war don’t
matter nearly as much as much as the profit potential that arise, and
nothing creates debt as much as warfare.
England was the perfect debt generating model of that time. During a
one-hundred and nineteen years between the founding of the Bank of
England, and Napoleon’s defeat at Waterloo, England had been at war for
56 years, and much of the remaining time the country had been preparing
for war.
During World War I the German Rothschild’s loaned money to the
Germans. The British Rothschild’s loaned money to the British, and the
French Rothschild’s loaned money to France. In the U.S., J.P. Morgan was
the sales agent for the war material to both the British and the
French. In fact, six months into the war, Morgan became the largest
consumer on earth, spending 10 million dollars a day. His offices at 23
Wall Street were mobbed by brokers and salesmen trying to cut a deal.
Many other New York bankers made a fortune on the war as well. President
Wilson appointed Bernard Baruch to head the wars industry board.
According to historian James Perloff, both Baruch and the Rockefellers
profited by 200 million dollars during the war. But, profits were not
the only motive, there was also revenge. They money changers never
forgave the Czar for his support of Lincoln during the Civil War. Also,
Russia was the last major European nation to refuse to give into the
privately owned central banking scheme. Three years after WWI started,
the banks money toppled the Russian Czar and installed communism. Jacob
Schiff of Kuhn, Lobe and Company bragged from his deathbed that he had
spent 20 million dollars toward the defeat of the Czar.
Money was funneled from England to support the revolution. The
question begs, why would some of the world’s richest men financially
back communism, the system that was openly vowing to destroy the
so-called capitalism that had made them all wealthy? Author Gary Allen
wrote, “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.”
W. Cleon Skousen, “Power from any source tends to create an appetite
for additional power, If was almost inevitable that the super-rich would
one day aspire to control not only their own wealth, but the wealth of
the whole world. To achieve this, they were perfectly willing to feed
the ambitions of the power-hungry political conspirators who were
committed to the overthrow of all existing governments and the
establishments of a central world-wide dictatorship.”
To keep these powerful dictators in check, the bankers would contract
the money supply, or finance their oppositions if they got out of
control. Lenin understood that, although he was the absolute dictator,
of the new Soviet Union, he was not the one pulling the financial
strings. Vladimir Lenin stated, “The state does not function as we
desired. The car does not obey. A man is at the wheel and seems to lead
it, but the car does not drive in the desired direction. It moves as
another force wishes.” Who was behind it? Representative Louis T.
McFadden explained it this way, “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 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.” In other words, the Feds and the heads of
the Bank of England at the behest of the international bankers that
controlled them were creating a monster. One that would fuel seven
decades of communist revolution, warfare and death.
In 1992, the New York Times reported that Russian president Boris
Yeltzin was upset that most of the incoming foreign aid was being
siphoned off by quote, “Straight back into the coffers of western banks
in debt service.”
Nobody would claim that a war as large as World War I would have a
single cause. Wars are complex, having many causative factors. However,
it would be equally as foolish to ignore as a primary cause of the war,
those that would profit the most from the war. The role of the money
changers is not a wild conspiracy theory. They had the clearest motive
to start the world war, a short-term profit motivating factor and a
long-range goal of advancing a totalitarian government, with the money
changers maintaining financial clout to control whatever politician
might emerge as the leader.
XXIII. The Great Depression.
Shortly after World War I, the overall political agenda of the money
changers began to become clear. Now that they controlled national
economies individually, the next step was the ultimate form of
consolidation – world government. The new world government proposal was
given top priority at the Paris Peace Conference after WWI. It was
called the League of Nations, but much to the surprise of Paul Warburg
and Bernard Baruch, who attended the conference with President Wilson,
the world was not yet ready to dissolve national boundaries. Nationalism
still beat strong in the human breast. To the humiliation of President
Wilson, the U.S. Congress would not ratify the league, despite the fact
that it had been ratified by many other nations. Without the money
flowing from the U.S. Treasury, the league died. After WWI, the American
people grew tired of the international policies of Wilson, and the
presidential election of the 1920′s, Warren Harding won a landslide
victory with over 60 percent of the nations vote. Harding was a strident
foe of both the Bolshevism, and the League of Nations. His election led
to an unprecedented era of prosperity. Under the next eight years under
the presidency of Coolidge and Harding the huge federal debt that had
built up during WWI was cut by 38%, down to 16 billion dollars, the
greatest percentage drop in U.S. history. During the election of 1920,
Harding and Calvin Coolidge ran against James Cox, the governor of Ohio,
and the little known Franklin D. Roosevelt, who had previously risen to
no higher post than President Wilson’s assistant secretary of the Navy.
After his inauguration, Harding moved quickly to formally kill the
League of Nations, and to reduce taxes, while raising tariffs to record
heights. This was a revenue policy that most of the founding fathers
would certainly have approved.
During his second year in office, Harding took ill during a train
trip west, and suddenly died. Although, no autopsy had ever been
performed, the cause was said to be either pneumonia, or food poisoning.
When Coolidge took over he continued Harding’s domestic policy, of high
tariffs on imports, while cutting income taxes. As a result, the
economy grew at such a rate, that net economy still increased. To the
bankers, this had to be stopped. So, just as they had done in the past,
it was time for the bankers to crash the economy.
Within minutes of Warren G. Harding’s death at either 7:10, 7:20, or
7:30 p.m. on August 2, 1923, rumors began to circulate. No one present
at his demise could give the correct time of death. No one seemed to be
sure who was on hand in the San Francisco hotel room when he breathed
his last. Most of all, the four physicians who had been caring for
Harding for the previous week could not agree on the cause of death. It
had something to do with his heart. On the other hand, perhaps it was a
stroke. Alternatively, it could have been both, exacerbated by the
ptomaine poisoning that he may or may not have experienced a few days
earlier in Vancouver. Despite the confusion over the time of death,
surely an autopsy would resolve the uncertainty about what killed Warren
G. Harding.
The Federal Reserve began to flood the country with money and
increased the supply by 62% during these years. This is why this time
period was known as the roaring 20′s. Before his death in 1919, former
president Theodore Roosevelt warned the American people what was going
on, as reported in the March 27th, 1922 edition of the New York Times,
Roosevelt 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 day before this article was
printed, the mayor of New York quoted Roosevelt and blasted those as he
saw taking control of America, its machinery and its press. “The
warning of Theodore Roosevelt has much timeliness today, for the real
menace of our republic is the invisible government which like a giant
octopus sprawls its slimy length over city, state, and nation. It seized
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 catspaws 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 the newspapers and magazines in this country.”
John Hylan, Mayor of New York. New York Times, March 26, 1922.
Why did nobody listen to these staunch warnings and demand Congress
to reverse its 1913 passage of the Federal Reserve Act? Because it was
the 1920′s and the money changers had flooded the market with money, and
the economy was showing a steady flow of increase in the markets. The
fact is, in times of economic prosperity, nobody wants to worry about
economic issues. But, there was a dark side to all of this prosperity.
Businesses had expanded and were strapped with credit. Speculating of
the booming stock market became rampant. The outlook on the market was
excellent, but it was a house built on sand. When all was ready, in
April of 1929, Paul Warburg the father of the Federal Reserve sent out a
secret advisory, warning his friends that an economic collapse was
imminent and a nationwide depression was certain. In August of 1929, the
Fed began its ploy in tightening the money supply. It is not a
coincidence that the biographies of all the Wall Street giants of that
era, J.D. Rockefeller, J.P. Morgan, Bernard Baruch, Joseph Kennedy, all
marveled that they got out of the stock market just prior to its crash,
and put all their assets in cash, or gold.
On October 29th 1929, the big New York bankers called in their 24
hour broker call loans. This meant that both stockbrokers and customers
had to dump their stocks on the market to cover their loans, no matter
what price they had to sell them for. As a result, the market tumbled
and that day was known as Black Thursday. At the height of the selling
frenzy, Bernard Baruch brought Winston Churchill in to the visitors
gallery at the New York Stock Exchange to witness the panic, and to
impress him with Baruch’s power over the events transpiring down over
the floor. Congressman Louis McFadden chairman over the House Banking
and Currency Committee, from 1920 until 1931, knew who to blame, he
accused the Fed and the international bankers of orchestrating the
crash. “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.” McFadden openly
accused the bankers of causing the crash in order to steal America’s
gold. In February of 1931, right in the middle of the depression he
stated, “I think it can hardly be disputed that the statesman and
financiers of Europe are ready to take almost any meant to reacquire
rapidly the gold stock which Europe lost to America as the result of
World War I.” Curtis B. Dall, a broker for the NYSE was on the floor the
day of the crash, in his 1970 book, Roosevelt, My Exploited Father In
Law, he explained that the crash was triggered by the planned sudden
shortage of call money in the New York money market. “Actually, it was
the 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.”
Within a few weeks, 3 billion dollars of wealth seemed to simply
vanish. Within a year 40 billion had been lost. Did it really disappear,
or did it merely consolidate in fewer hands? Joseph P. Kennedy’s worth
grew from 4 million dollars in 1929 to over 100 million dollars by 1935.
What did the Federal Reserve do? Instead of moving to help the economy
out, by quickly lowering interest rates, to stimulate the economy, the
Fed continued to brutally contract the money supply further, which
deepened the depression. Between 1929, and 1933 the Fed reduced the
money supply by additional 33%. Although most Americans had never heard
the Fed was the cause of the depression. This is well-known among the
top economists. Milton Friedman, the Nobel Prize winning economist, now
of Stanford University said the same thing during a radio interview in
1996. “The Federal Reserve definitely caused the Great depression by
contracting the amount of currency in circulation by one-third from 1929
to 1933.”
The money lost during the depression had not just vanished, it had
simply redistributed into the hands of the people who had gotten out of
the market, just prior to the crash, and had purchased gold, which is
always a safe place to put money right before a depression. America’s
money also went overseas, as president Hoover was attempting to rescue
banks and prop up businesses, with millions of American’s starving as
the depression deepened, millions of dollars were being spent to rebuild
Germany from damages sustained during World War One. Eight years before
Hitler would invade Poland, Rep. Louis McFadden would warn congress,
that American’s were paying for Hitler’s rise to power. “After WWI,
Germany fell into the hands of the German international bankers. Those
bankers bought her and they now own her, lock, stock, and barrel. They
have purchased her industries, they have mortgages on her soil, they
control her productions, they control all her public utilities. The
international German bankers have subsidized the present Government of
Germany and they have also supplied every dollar of the money Adolph
Hitler had used in his lavish campaign to build up a threat to the
government of Bruening. When Bruening fails to obey the orders of the
German International Bankers, Hitler is brought forth to scare the
Germans into submission. 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 find 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 has pumped so many billions into Germany that
they dare not name the total.”
In his last year in office Hoover put forth a desperate plan to bail
out the failing banks, but he needed support from the Democratic
congress, and he wasn’t about to get it. That same year Franklin D.
Roosevelt was swept into office during the 1932 presidential election.
Once Roosevelt was in office, sweeping emergency banking measures were
announced. Then and only then did the Fed begin to expand money into the
economy and to the starving American people.
XXIV. FDR and The Theft of America’s Gold.
Franklin Delano Roosevelt has been called an American hero. In
reality he was a New York banker, and had conspired with the FED to
outlaw, and confiscate all gold that was privately held. The guise was
to prop up the American economy. The result was a scheme that would
further impoverish the American people.
At first Roosevelt railed against the money changers as being the
cause of the depression. FDR’s inaugural address included the following
statement, “Practices of the unscrupulous money changers stand indicted
in the court of public opinion, rejected by the hearts and minds of men.
The money changers have fled from their high seats in the temple of our
civilization.” FDR, March 4th, 1933. Two days later Roosevelt declared a
bank holiday, closing all banks. Later that same year he outlawed
private ownership of all gold bullion and all gold coins, with the
exception of rare coins. Most of the coins that remained in the hands of
the Americans were in the form of gold coin.
This new decree was, in effect a confiscation of private, and
personal assets. Those that did not comply, risked as many as ten years
in federal prison, and a 10,000 dollar fine, the equivalent of more than
a 100,000 fine today. Across the small towns of America, many people
didn’t trust Roosevelt’s order. Many people were torn in keeping their
hard-earned wealth, and obeying the government. Those that did turn in
their gold were paid the official price for it, which was 20.66 USD per
ounce. So unpopular was the confiscation order that nobody in government
would take credit for it. No congressman took credit for the bill. At
the signing ceremony President Roosevelt made it clear to all present
that he was not the author of the bill, and had not even read it. Even
the secretary of the treasury said he had never read the bill either,
however the secretary was quoted as saying, “It’s what the experts
wanted.” Roosevelt convinced the public to give up their gold by stating
that pooling America’s resources were necessary to get the nation out
of the depression. With great fanfare he ordered a new bullion
depository, that would hold the mountain of gold the U.S. government was
illegally confiscating. By 1936, the U.S. bullion depository at Fort
Knox was completed and in January of 1937, the gold began to flow into
it. The rip off of all ages was about to proceed. Once all the gold had
been turned in, the official price of gold was suddenly raised to 35
dollars an ounce. But only foreigners could sell their gold at the new
high price. The money changers that had heeded Warburg’s warning, and
gotten out of the crash just before it bottomed out, purchase gold at
20.66 per ounce, then shipped it to London, and could sell back to the
government for nearly double the amount it was purchased for, while the
average American who had turned their gold in – starved.
When the gold began arriving at Fort Knox on January 13th, 1937,
there was unprecedented security, while thousands of official guests
watched the arrival of a nine car train from Philadelphia. The train was
guarded by armed soldiers, postal inspectors, secret service men and
guards from the U.S. mint. It was all great theater. America’s gold
supply from across the land had been pulled, supposedly for the benefit
of the American people. It was supposed to be stored at Fort Know, but
all that security would soon be breached by the government itself.
Now the stage was set for a really big war. A war that would pile up
debt like the world had never seen before. The war spending rate was
thirty times higher than the war spending of World War I. In fact, the
American taxpayer paid 55% of the total allied expense of the war. But,
just as important, each nation that was involved in World War II greatly
multiplied their debt. In the U.S., federal debt went from 43 billion
in 1940, up to 257 billion in 1950, an increase of 598%. Between 1940
and 1950, Japanese debt swelled 1348%, French debt grew 583%, Canadian
debt soared 417%.
After the war, the world was divided into two economic camps.
Communist command economy on the one hand, versus monopoly capitalist on
the other. Both sides were set to fight it out in one perpetual and
highly profitable arms race. It was finally time for the central bankers
to embark on their three-step plan to centralize the economic system of
the entire world and finally bring about their global government or
their new world order.
Step One. Central bank domination of national economies worldwide.
Step Two. Centralize regional economies to organizations such as the European Monetary Union, and regional trade unions such as NAFTA.
Step Three. Centralize the world economy through a World Central Bank, and do away with all international tariffs and treaties like GATT.
Step One was completed long ago. Steps two and three are already well
into the advanced stage of completion. The largest holder of gold today
is the IMF. It and other centralized banks now control more than 2/3 of
the world gold supply, giving them the ability to manipulate the
world’s gold supply.
What happened to all that gold that was stored at Fort Knox? At the
end of World War II, Fort Knox vaults contained more than 700 million
ounces of gold, about 70% of all the gold in the world. Most Americans
still believe that the gold is still stored at Fort Knox. How much gold
remains? Nobody knows. Despite the fact that federal law requires an
annual physical audit of all the gold held at Fort Knox, the U.S.
treasury consistently refuses to conduct one. The truth is there has
been no reliable audit of the gold held at Fort Knox since President
Eisenhower ordered one in 1953. So, where did all that gold go? Over the
years it was sold off to European interests at the price of 35.00 an
ounce. This was done during a time when it was illegal for any American
to purchase, any of the gold at Fort Knox. In fact, in the late 1970′s,
the family of the Firestone Corporation set up a string of dummy
corporations to purchase Fort Knox gold and keep it in Swiss banks.
However, they were successfully caught and prosecuted.
By 1971, all of the nations pure gold that was held at Fort Knox had
been secretly removed and back to London. Once the gold was gone from
Fort Knox, President Nixon closed the gold window, by repealing
President Roosevelt’s Gold Act of 1934, finally making it legal once
again for Americans to purchase gold. As a result, gold prices began to
immediately soar. Nine years later gold prices reached 880.00 USD per
ounce, 25 times what the gold in Fort Knox was sold for. The largest
fortune in the history of the world was stolen, with not one government
official ever blowing the whistle. So, how did the Fort Knox gold
robbery get out? It all started in a New York periodical in 1974. The
article charged the Rockefeller family was manipulating the federal
reserve to sell off Fort Knox gold at bargain basement prices to
anonymous European speculators. Three days later the anonymous source of
the story, Louise Auchincloss Boyer mysteriously fell to her death from
the 10th floor of her apartment in New York. How could Ms. Boyer have
known about the greatest crime perpetrated against the American people?
Louise Boyer was the long time personal secretary of Nelson Rockefeller.
For the next fourteen years, Ed Durell, a wealthy Ohio industrialist
devoted himself to the truth of the whereabouts of the gold of Fort
Knox. Ed Durrell went on a one man campaign sending letters to a
thousand government officials demanding to know what gold remained at
Fort Knox. Edith Roosevelt, the grand-daughter of President Roosevelt
wrote, “Allegations of missing gold from our Fort Knox vaults are being
widely discusses in European financial 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.” Unfortunately, Ed Durrell never did
accomplish his primary goal, which was a full audit of the gold reserve
at Fort Knox. The fact is, this gold belonged to the American people,
not to the Federal Reserve or their foreign interests. One thing for
certain is the government could blow all of this speculation away in a
few days of auditing in the public light. However, the government has
chosen not to do so. One could only conclude the government is afraid to
learn what such an audit would reveal. What is the government so afraid
of? When Ronald Reagan took office in 1981, his conservative friends
urged him to study the feasibility of returning to a gold standard, as
the only way to curb government spending. President Reagan appointed a
Gold Commission to study the situation and to report back to Congress.
What the Gold Commission reported back to Reagan in 1982, was the
following shocking revelation concerning gold.
Texas Rep. Ron Paul, suggesting America’s reserves may not be as
robust as officials claim, is calling for an independent audit of the
U.S. gold held at Fort Knox and other facilities. The Republican
congressman known for his fierce opposition to virtually everything the
Federal Reserve does says the public deserves to know what’s behind the
fortified walls of America’s gold vaults — particularly in case gold is
ever reintroduced as a basis for U.S. currency. ”It’d be nice for the
American people to know whether or not the gold is there,” Paul told Fox
Business Network. And if it is all there, he said, the public should
know whether any of it has been obligated.
However, we can be assured that the U.S. treasury owns no gold at
all. All the gold that was confiscated and stored at Fort Knox has now
been transferred to the Federal Reserve. Never before has so much money
been stolen from the hands of the general public, and placed in the
hands of private investors.
XXV. The International Monetary Fund And The World Bank.
After World War I, under the guise of peace making, international
bankers devised a plan to consolidate power even further. Claiming only
an international government would stem the tide of world wars the money
changers pushed for a world government that stood on three legs. One
central bank to be called the Bank of International Settlements. A world
judiciary to be called the World Court located in the Hague of the
Netherlands, and a world executive and legislature to be called the
League of Nations. President Clinton’s mentor Georgetown Historian
Carroll Quigley wrote in his 1966 book Tragedy and Hope, “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.”
Despite intense pressure from the international bankers and the press
they controlled, a handful of senators, led by Henry Cabot Lodge, kept
the U.S. out of these schemes. Without U.S. participation the system was
doomed. Incredibly, even though the U.S. rejected the world central
bank, the New York Federal Reserve ignored its government and arrogantly
sent representatives to Switzerland to participate in the central
bankers meetings, right up until 1994, when the U.S. was finally and
officially dragged into it.
The bankers resorted to the old formula, another war to wear down the
resistance to one world government while reaping handsome profits. To
this end, Wall Street helped resurrect Germany, through the Thisen banks
that were closely connected to the Harriman interest in New York, just
as the Chase Bank had assisted in the financing of the Bolshevik
Revolution during World War I. Chase Bank was controlled by the
Rockefeller family. Subsequently, it was merged with Warburg’s Manhattan
Bank to form the Chase-Manhattan Bank. Then Chase-Manhattan merged with
Chemical Bank of New York, making it the largest Wall Street bank
during its time. Their strategy was working, even before World War II
was over, the world government was back on track. In 1944, in Bretton
Woods, New Hampshire, the International Monetary Fund, and the World
Bank were approved with full U.S. participation. The Second League of
Nations, renamed the United Nations was approved in 1945. Soon a new
international court system was functioning as well. All effective
opposition to these newly formed organizations prior to the war, had
subsequently evaporated during the time of war, which was the
international bankers plan. These organizations were repeating on a
world scale, what the National Banking Act of 1864, and the Federal
Reserve Act of 1913 had established in the U.S. They created a banking
cartel composed of all the world’s central banks, which gradually
assumed the power to dictate credit policies to the banks of all the
nations.
Just as the Federal Reserve Act authorized the creation of a new
national fiat currency called federal reserve notes, the International
Monetary Fund has been given the authority to issue a world fiat money
called special drawing rights. The IMF has created an excess of 30
billion dollars of special drawing rights. Member nations are being
pressured to make their currency fully exchangeable for SDR’s. In 1968
Congress approved laws authorizing the feds to accept SDR’s as reserves
in the U.S., and to issue federal reserve notes in exchange for SDR’s.
This means in the U.S. SDR’s are already a part of the nation’s lawful
money. SDR’s are already partially backed by gold as well, and with 2/3
of all the world’s gold in the hands of the international bankers, the
money changers can go about structuring the world’s economic future in
any way they deem most profitable. Just like the Fed is controlled by
its board of governors the IMF is also controlled by its board of
governors, which are either the heads of the difference central banks or
the heads of the various national treasury departments dominated by
their central banks. Voting power in the IMF gives the U.S. Federal
Reserve and England’s Bank of England effective control. Just as the Fed
controls the amount of money in the U.S., the BIS, IMF and the World
Bank control the money supply for the world. So, the repetition of the
old goldsmith’s fraud, replicated on the national scale, with central
banks like the Fed, and on the international scale, by the three arms of
the international central bank. Regulation put into effect in 1988, by
the BIS, required the world bankers to raise their capital to 8% reserve
of liability by 1992. This increase of capital requirement put an upper
limit to the fractional reserve lending practices similar to the way
cash reserve requirements do. What does this seemingly insignificant
regulation that was made in a Swiss city mean to the world? It means
that banks cannot loan more and more money to buy more and more time
before the next depression, as a maximum loan ratio is now set. It means
those nations with the lowest bank reserves in their systems have
already felt the terrible effect of this monetary contraction as their
banks scramble to raise money to increase their reserves to 8%. To raise
the money, the nations had to sell stocks, which depressed those
nation’s stock markets, and began the depressions first in their
countries.
In 1988, Japan had one of the lowest capital reserve requirements,
was the most effected by the regulation and suffered a financial crash
that began almost immediately. This requirement wiped out nearly 50% of
the value of its stock market since 1990, and 60% of the value of its
commercial real estate. The Bank of Japan had lowered its interest rate
to one half of one percent, practically giving away money to resurrect
the economy, but still the depression worsens.
Due to the 20 billion dollar bailout by the U.S. to Mexico, the
financial collapse of that nation is already felt in the U.S. Despite
the bailout the economy continues to be a disaster. One huge debt is
being rolled over as new loans are being made to simply cover the
interests Mexico must pay on the old loans. In the south of Mexico every
spare peso had been siphoned out of the nation to make interest
payments. It is important to note that radical power exchanges are
taking place, as nations are subservient to a super powerful world
central bank, controlled by a handful of the world’s richest bankers.
As the IMF creates more and more SDR’s by the stroke of a pen on IMF
ledgers, more and more nations borrow to pay the interest on their
mounting debt. Eventually, the nations fall under complete control of
the faceless bureaucrats of the world central bank. As the world-wide
depression worsen and spreads, this gives the world banks the power of
economic life and death of a nations people, as it alone will decide
what nations will be permitted to receive further loans of the SDR’s and
which nations will starve.
Despite all the rhetoric about development and alleviation of poverty
the result is a steady transfer of wealth from the debtor nations to
the money changers central banks which control the IMF and the World
Bank.
In 1992, the third world debtor nations, which borrowed from the
World Bank, paid 198 million dollars more to the central bank of the
developed nations, for world bank funded purposes, than they received
from the world bank. All this increased these nations permanent debt in
exchange for temporary relief of poverty caused by prior borrowing. All
of these payments have already exceeded the amount of the new loans. By
1992, Africans external debt had reached 290 billion dollars, 2.5 times
greater than in 1980 resulting in skyrocketing infant mortality rates,
unemployment, deterioration of schools, housing and the general health
of the people. The entire world is already facing the suffering that is
already destroying the third world, and Japan’s economy, all for the
benefit of the money changers. A prominent Brazilian politician stated,
“The third world war has already started. It is a silent war. Not, for
that reason, and less sinister. The war is tearing down Brazil, Latin
America, and practically all the Third World. Instead of soldiers dying,
there are children. It is a war over the Third World debt, one which
has as its main weapon, interest, a weapon more deadly than the atom
bomb, more shattering than a laser beam.”
XXVI. Finale.
Although it would be absurd to ignore the pivotal role played by
influential families such as the Rothschild’s, the Walberg’s, the
Schiff’s, the Morgan’s and the Rockefeller’s, in any review of the
history of central banking and fractional banking, keep in mind, by now
central banks and the large commercial banks are up to three centuries
old and deeply entrenched in the economic life of many nations.
These banks are no longer dependent on clever individuals, such as
Nathan Rothschild. Years ago, the question of ownership was important
but no longer. For example, both the Bank of England, and the Bank of
France were nationalized after World War II, and nothing changed.
Nothing at all. They endure and continue to grow, now protected by
numerous laws, paid politicians and mortgaged media, untouched by the
changing of generations. Three centuries have given them an aura of
respectability. The old school tie is now worn by the 6th generation
son, who has been raised in a system that he may never question as he is
named to serve on the boards of countless philanthropic organizations.
To focus attention today on individuals or families, or to attempt to
sort out the current holders of power serves little useful purpose and
would be a distraction from the cure. The problem is far bigger than
that. It is the corrupt banking system that was and is being used to
consolidate vast wealth into fewer and fewer hands that is our current
economic problem. Change the names of the main players now, and the
problem will neither go away, nor even miss a beat. Likewise, among the
hordes of bureaucrats working in the world bank, central banks and
international banks, only a tiny fraction have any idea of what’s really
going on. No doubt they would be horrified to learn that their work is
contributing to the terrible impoverishment and gradual enslavement of
mankind to a few incredibly rich plutocrats.
So really, there is no use in emphasizing the role of individuals
anymore. And the problem even transcends the normal spectrum of
political right and left. Both communism and socialism, as well as
monopoly capitalism, have been used by the money changers. Today, they
profit from either side of the new political spectrum. The big
government welfare state on the so-called left-wing, versus the
neo-conservative laissez-faire capitalists who want big government
totally out of their lives on the right-wing. Either way the bankers
win. Monetary reform is the most important political issue facing this
nation. With that clarified, lets proceed to the conclusion in the
spirit Lincoln declared. “With malice towards none, with charity towards
all.”
The most important questions that need to be addressed:
- What’s going on with America’s economy today?
- Why is the wealthiest nation in the world buried in massive debt?
- Why can’t politicians bring the debt crisis under control?
Why are we over our heads in debt? Because we’re laboring under a
debt money system that is designed and controlled by private bankers.
Now some will argue that the federal reserve system is a quasi
governmental agency, but the president appoints only two of the seven
members of the federal reserve board of governors every four years, and
he appoints them to fourteen years terms, far longer than his own. The
senate does confirm those appointments, but the whole truth is that the
president wouldn’t dare appoint anyone to that board of whom Wall Street
does not approve. Of course this does not preclude the possibility that
some honorable men may be appointed to the board of governors, but the
fact is that the fed is specifically designed to operate independently
of our government, as are nearly all other central banks. Some argue
that the Fed promotes monetary stability. We saw the current head of the
Bank of England, Eddie George claim that this was the most important
role of the central bank. In fact, the Feds record of stabilizing the
economy shows it to be a miserable failure in this regard. Within the
first 25 years of its existence, the Fed caused 3 major economic
downturns, including The Great Depression, and for the last 30 years has
shepherded the American economy into a period of unprecedented
inflation. Again, this is not some wild conspiracy theory, it’s a
well-known fact amongst top economists. As Nobel prize-winning economist
Milton Friedman put it, “The stock of money, prices and 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 two wars, which includes the severe
monetary contractions of 1920-21, 1929-33, and 1937-38. No other 20-year
period in American history contains as many as three such severe
contractions. This evidence persuades me that at least a third of the
price rise during and just after World War I is attributable to the
establishment of the Federal Reserve System and that the severity of
each of the major contractions is directly attributable to acts of
commission and omission by the Reserve authorities. 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. To paraphrase Clemenceau – money is much too serious a
matter to be left to the central bankers.” – Milton Friedman.
We must learn from our history before it is too late. Why can’t
politicians control the federal debt? Because all of our money is
created out of debt. Again it’s a debt money system. Our money is
created initially by the purchase of U.S. bonds. The public buys bonds
like savings bonds. The banks buy bonds, foreigners buys bonds, and when
the Fed wants to create more money in the system, it buys bonds, but
pays for them with a simple book-keeping entry which it creates out of
nothing. Then this new money, created by the Fed is multiplied by a
factor of ten by the banks thanks to the fractional reserve principle.
Although the banks don’t create currency, they do create check book
money, or deposits by making new loans. They even invest some of this
created money. In fact, over 1 trillion dollars of this privately
created money has been used to purchased U.S. bonds on the open market
which provides the banks with roughly 50 billion dollars in interest,
risk free, each year, less the interest they pay to some depositors. In
this way, through fractional reserve lending, banks create over 90% of
the money, and therefore cause over 90% of our inflation.
Fortunately there is a way to fix the problem fairly easily, speedily
and without any serious financial problems. America can get completely
out of debt in one to two years by simply paying off these U.S. bonds
with debt free U.S. notes, just like Lincoln issued. Of course, that by
itself would create tremendous inflation since our currency is presently
multiplied by the fractional reserve banking system. But here is the
ingenious solution advanced in part by Milton Friedman, to keep the
money supply stable, and avoid inflation and deflation while the debt is
retired. As the treasury buys up its bonds on the open market with U.S.
notes, the reserve requirements of your home town local bank will be
proportionally raised, so the amount of money in circulation remains
constant. As those holding bonds are paid off in U.S. notes, they will
deposit this money, thus making available the currency then needed by
the banks to increase their reserves. Once all the U.S. bonds are
replaced with U.S. notes, banks will be at 100% reserve banking instead
of the fractional reserve system currently in use.
From this point on the former Fed buildings will only be needed as a
central clearing house for checks and as vaults for U.S. notes. The
federal reserve act will no longer be necessary and should therefore be
repealed. Monetary power can be transferred back to the treasury
department. There would be no further creation and contraction of money
by banks. By doing it this way, our national debt could be paid off in a
single year or so, and the Fed and fractional reserve banking abolished
without national bankruptcy, financial collapse, inflation or
deflation, or any significant change in the way the average American
goes about his business. To the average person, the primary difference
would be that for the first time since the Federal Reserve act was
passed in 1913, taxes would begin to go down.
The following are the main provisions of a monetary reform act which needs to be passed by congress.
- Pay off the debt with debt free U.S. notes. As Thomas Edison put it, “If the U.S. can issue a dollar bond, it can issue a dollar bill.” They both rest purely on the faith and credit of the United States government. This amounts to a simple substitution of one type of government obligation for another. One bears interest, the other doesn’t. Federal reserve notes could be used for this as well, but could not be printed after the Fed is abolished as we proposed, so we suggest using U.S. notes instead.
- Abolish Fractional Reserve Banking. As the debt is paid off, the reserve requirements of all banks and financial institutions would be raised proportionally at the same time to absorb the new U.S. notes which would be deposited and become the banks increased reserves. Towards the end of the first year of the transition period, the remaining liabilities of financial institutions would be assumed or acquired by the U.S. government in a one time operation. In other words, they too, would eventually be paid off with debt free U.S. notes in order to keep the total money supply stable. At the end of the first year or so, all of the national debt would be paid, and we could start enjoying the benefits of full reserve banking. The Fed would be obsolete.
- Repeal the Federal Reserve Act of 1913, and the National Banking Act of 1864. These acts delegate the money power to a private banking monopoly. They must be repealed, and the money power handed back to the Department of Treasury where they were initially under President Abraham Lincoln. No banker or person in any way affiliated with financial institutions should be allowed to regulate banking. After the first two reforms, these acts would serve no useful purpose anyway since they relate to a fractional reserve banking system.
- Withdraw the U.S. from the IMF, the BIS and the World Bank. These institutions like the federal reserve, are designed to further centralize the power of the international bankers over the world’s economy and the U.S. must withdraw from them. Their harmless functions such as currency exchange can be accomplished either nationally, or in new organizations limited to those functions.
Such a monetary reform act would guarantee that the amount of money
in circulation would stay very stable, causing neither inflation, nor
deflation. Remember, for the last three decades, the Fed has doubled the
American money supply every ten years. That fact, and fractional
reserve banking are the real causes of inflation and the reduction in
our buying power, a hidden tax. These and other taxes are the real
reasons both parents have to work just to get by. The money supply
should increase slowly to keep prices stable, roughly in proportion to
population growth, about 3% per year. Not at the whim of a group of
bankers meeting in secret. In fact, all future decisions on how much
money will be in the American economy must be made based on statistics
of population growth and the price level index.
The new monetary regulators and the Treasury Department, perhaps
called the Monetary Committee, would have absolutely no discretion in
this matter except in time of declared war. This would ensure a steady
stable money growth of roughly 3% per year, resulting in stable prices,
and no sharp changes in the money supply. To make certain the process is
completely open and honest, all deliberations would be public, not
secret as meetings of the Feds board of governors are today.
How do we know this will work? Because these steps remove the two
major causes of economic instability – The Fed, and fractional reserve
banking, and the newest one as well, the BIS, the Bank of International
Settlements. But most importantly, the danger of a severe depression
would be eliminated. Milton Friedman discusses the single cause of
severe economic depressions, “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.”
Issuing our own currency is not a radical solution. It has been
advocated by presidents Jefferson, Madison, Jackson, Van Buren and
Lincoln, but it’s been used at different times throughout Europe as
well. Perhaps the best example is one of the small islands off the coast
of France and the English channel. Called Guernsey, it’s been using
debt free money issues to pay for large building projects for nearly 200
years. Guernsey is one of the most successful examples of just how well
a debt free money system can work. In 1815 a committee was appointed to
investigate how best to finance a new market. The impoverished island
could not afford more new taxes, so the states fathers decided to try a
revolutionary idea. Issue their own paper money. They were just colorful
paper notes, backed by nothing, but the people of this tiny island
agreed to accept them and trade with them. To be sure they were
circulated widely, they were declared to be good for the payment of
taxes. Of course this idea was nothing new. It was exactly what America
had done before the American revolution, and there are many other
examples throughout the world, but it was new to Guernsey, and it worked
miracles. The market is still in use today, and it was built for no
debt to the people of the island state. But, what if we follow
Guernsey’s example? How would the bankers react to these reforms.
Certainly the international bankers cartel will oppose reforms that do
away with control of the worlds economies as they have in the past. But
it is equally certain that congress has the constitutional authority and
responsibility to authorize the issuance of debt free money, U.S. notes
and reform the very banking laws it ill-advisedly enacted.
Undoubtedly the bankers will claim that issuing debt free money will
cause severe inflation or make other dire predictions, but remember it
is fractional reserve banking that is the real cause of over 90% of all
inflation, not whether debt free U.S. notes are used to pay for
government deficits. In the current system, any spending excesses on the
part of congress are turned into more debt bonds, and the 10% purchased
by The Fed, are then multiplied many times over by the bankers, causing
over 90% of all inflation.
Our fractional reserve and debt based banking system is the problem.
We must ignore its inevitable resistance to reform, and remain firm
until the cure is complete. As the director of the Bank of England in
the 1920′s, Sir Josiah Stamp put it, referring to this modern reserve
banking system, “Banking is 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 control credit, and with the flick of a pen they
will create enough money to buy it back again. Take this great power
away from the bankers and all great fortunes like mine will disappear,
and they ought to disappear, for this would be a better and happier
world to live in. But, if you want to continue as the slaves of bankers,
and pay the cost of your own slavery, let them continue to create money
and to control credit.”
Americans are slowly figuring this out. Today there over 3200 cities
and counties that have endorsed the proposal of a non-profit
organization called Sovereignty. The Sovereignty movement calls for
congress to authorize the Secretary of State to issue 90 billion dollars
per year in U.S. notes. Not Federal Reserve notes, nor debt based
bonds, to loan money interest free to cities, counties and school
districts for needed capital improvement. Remarkably, the Community
Bankers Association of Illinois, representing 515 member banks, has
endorsed this Sovereignty proposal.
What do the money changers have in store for the world? Remember the
infamous words of David Rockefeller, the chairman of the one time
largest Wall Street bank Chase-Manhattan, “We are on the verge of a
global transformation. All we need is the right major crisis and the
nation will accept the New World Order.” So, crisis is needed to fulfill
their plan. The only question is, when will this crisis occur? Whether
or not they decide to cause a crash, or a depression through the
relentless increase in taxes, resulting in the loss of hundreds of
thousands of jobs being sent over seas thanks to trade agreements such
as GATT and NAFTA, the American middle-class is becoming an endangered
species. Cheaper labor, including slave labor in China, which Harry Woo
has heroically documented, is being used to compete with American labor.
In other words money is being consolidated into fewer and fewer hands
as never before seen in the history of America, or the world. Without
reform the American middle class will soon be extinct, leaving only the
very rich few, and the very many impoverished poor, as has already
occurred in most of the world. We have been warned of this by
congressmen, presidents, industrialist and economists, and religious
leaders down through the years.
Pope Leo XIII put it this way, “On the one side there is the party
which holds the power because it holds the wealth; which has in its
grasp all labor and all trade; which manipulates for its own benefit and
its own purposes all the sources of supply, and which is powerfully
represented in the councils of State itself. On the other side there is
the needy and powerless multitude, sore and suffering. Rapacious usury,
which, although more than once condemned by the Church, is nevertheless
under a different form but with the same guilt, still practice by
avaricious and grasping men, so that a small number of very rich men
have been able to lay upon the masses of the poor yoke little better
than slavery itself.”
What can we do to protect our families during times of depression?
- Get out of debt, even if it means lowering ones standard of living.
- Liquidate ones wealth. In a worse case scenario, one should consider placing their wealth into silver coin. Pre-1965 silver coins are 90% silver. During a depression a single silver dollar may be able to buy groceries for an entire week for one single family.
- Resist a gold standard, as two-thirds of the world’s gold wealth is now concentrated in the World Bank.
- Be aware of any plan for an international currency, which is nothing more than the international bankers Trojan Horse.
- Educate your members of congress. It only takes a few educated members to make the other pay attention. Most don’t understand the system, and the ones that do are so tightly woven to the thread of the banking industry that they ignore it, not realizing the gravity of their neglect.