The Federal Reserve is an
organization with which many American's are completely unaware and few
fully understand. Yet this organization does as much, or
more, to influence the lives of the American public as do the President
or Congress. Why and by whom the Federal Reserve was created,
who runs and controls this organization and what purpose they serve has
been obscured, by design, from the American public.
Most Americans believe that the Federal Reserve is part of the American government since the word "Federal" appears in its name. However, the Federal Reserve is no more Federal than Federal Express. It is not a government institution but in reality is a private bank that enjoys a government mandated monopoly on the Nation's money supply. In actuality, the entire name Federal Reserve is a misnomer. It is neither Federal nor is it a Reserve of anything. If you wish a simple verification of this fact, turn to your phone book. Check the blue listings of government organizations and you will discover no listing for the Federal Reserve. You will however find a listing for them in the white pages.
The "Fed", as they have come to be known, is a unique organization that has created for itself a very special niche. Since it is not a Government organization then surely it must be a private corporation, right? Wrong. The Federal Reserve is not incorporated, has not filed as a privately owned business, not filed as a partnership of any kind, nor has it ever registered its name as a fictitious name for business purposes. The Federal government does not list them as a government agency, it does not respond on a daily basis to Congress, nor is it subject to congressional action. So just what is the Federal Reserve? No one is really quite sure. They cannot be classified as either public or private. Yet, the "Fed" is, quite probably, the most powerful organization in the world.
The Federal Reserve operates under a tightly veiled blanket of security answering to no one, including the President or Congress. However, since it has complete and absolute control over our money, this means it wields a tremendous amount of power over all of us. In order to unders
tand how the banking system has perverted itself, into a corrupt, power-mad entity hell bent on economically enslaving us all, we must examine the evolution of American banking.
Origins of the American Banking System
In 1792, the Coinage Act created the American monetary system, establishing the dollar as the basic unit of exchange. The dollar was defined as 24 3/4 grains fine gold, and the silver dollar as 416 grains standard (892.4 fineness). However, oddly enough, the act didn't establish a mintage of a gold dollar. Instead, it called for gold pieces in denominations of $10, $5, and $2.50, silver coins in $1, $0.50, $0.25, $0.10, and $0.05, and a copper cent ($0.01) and a half-cent ($0.005). The Nation's first mint was created in Philadelphia and it
began the production of the gold, silver, and copper coins. With a few exceptions, this was the last period of American history when the American government was in charge of the their own honest monetary system.
At this point in history, the international banking agents were already in control of the national banks of Britain, Germany and France. They were already practicing their craft of financial manipulation, inflation and deflation, to swamp those nations with debt and rob the wealth of its Citizens. Many of the Founding Fathers, led by Thomas Jefferson and James Madison, were determined not to allow the international bankers to control the economy of their fledgling nation. However, others among the Founders, most notably Alexander Hamilton, were already in collusion with the international bankers who were greatly worried about the possibility of the United States having a free, honest and independent monetary system.
The London Times printed an editorial regarding America's attempts to make the creation of money a free Constitutional concern:
"If this mischievous financial policy, which has its origin in the North American Republic, shall become indurated down to a fixture, then that government will furnish its own money without cost. It will pay off its 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 the wealth of all countries will go to North America. That government MUST be DESTROYED or it will destroy every monarchy on the globe."
Jefferson fought Hamilton relentlessly over the issue of who would control the new Nations money supply, but it was Hamilton, backed by the influence of the international bankers, who prevailed. Hamilton, aided by a Federalist majority in Congress, succeeded in establishing the First United States Bank in 1791. The bank was extended a 20 year charter. When the banks' charter came up for renewal in 1811, a much different political climate existed. James Madison was now President and the overwhelming majority of Federalists in Congress had been broken by the Presidency of Thomas Jefferson. Madison vetoed the bank's charter renewal and the Federalists did not have the power or clout to override his veto. The First United States Bank was dissolved and nationalized.
Unfortunately, before Madison could put into place a sound monetary system to replace the now defunct First United States Bank, the second war with England erupted (1812-14) and in order to finance the war, Madison was forced to capitulate to the international bankers and allowed the creation of the Second United States Bank. The Second U.S. Bank operated, in principle, much the same was as the Federal Reserve does today. The bank was permitted to issue (loan) currency to the Government at interest up to three times their gold (or silver) reserves. However, the bank paid little attention to the reserve limitations as greedy politicians, eager to borrow more money to increase their spending, did not hold them accountable for their lending policies and the bankers were only too happy to lend it to them.
Following the conclusion of the war of 1812, the bankers created a climate of extremely easy credit, money and inflation. This was accomplished by keeping interest rates artificially low while increasing the available money supply. Because of this ease of credit and expanding money supply, farmers and business borrowed heavily to expand their operations. This had the effect of creating a period of almost hyper-inflation and the prices of many goods quadrupled during the period of 1812 to 1819. However, the U.S. was being set up for a fall and in 1819 the bankers pulled the rug out from under the American public. Credit was withdrawn, money supplies were allowed to dry up, loans were called and the bankers created one of the first artificial depressions in American history. Hundreds of thousands of farmers lost their farms, many businesses went bankrupt and the bankers were there to foreclose on them all. The national debt, the interest on the money created by the bank and loaned to the government, mounted.
Andrew Jackson was elected President in 1828, running on a platform of populism. One of the campaign promises he made was remove the strangle hold the international bankers, through the National bank, had over the American government and the Citizens of America. Jackson kept his promise and refused to renew the charter for the Second United States Bank.
In a speech to Congress, Jackson said of the National bank and its internationalist banking backers:
"You are a den of vipers and thieves and I intend to rout you out, and by the eternal God, I will rout you out ... The bold efforts that the present bank has made to control the government, the distress it has wantonly caused, are but premonitions of the fate which awaits the American people should they be deluded into a perpetuation of this institution or the establishment of another like it. ...if the people only understood the rank injustice of our money and banking system there would be a revolution before morning."
Lincoln said of the international bankers:
"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 selfish than bureaucracy. It denounces, as public enemies, all who question its methods or throw light upon its crimes."
"I have two great enemies, the Southern Army in front of me and the financial institutions in the rear. Of the two, the one in my rear is my greatest foe."
This brings us to the current international bankers attempt to control the American people and their economy. This latest regeneration of the National banking scheme has been far more successful than the previous two.
The Federal Reserve Conspiracy
Of all the legislation that Congress has even enacted, without a doubt, the Federal Reserve act is the most corrupt, deceitful, dishonest and harmful to the American people. It was a conspiracy most grand -- a plan to control the Nation, and indeed the world, by the manipulation of its finances.
The first stage of the plan took place in 1907 when the bankers began to refuse to pay on demand of depositors and also refused to pay in cash for checks. There was a core collusion of several city banks that force smaller rural banks to follow suit because these banks had themselves deposited their funds in the larger more stable city banks. It didn't take long for this action to reach its desired effect, massive panic and dissatisfaction among the American people with the present bank system. Calls for reform and government intervention were heard from near and far. The Government decided it needed to act.
The conspirators already had their Bill drafted and this artificial banking panic lead to the passing of the Aldrich-Vreeland Emergency Currency Act of 1908. This Act, while taking measures to address the supposed banking problems, more importantly to the conspirators set up the National Monetary Commission. This commission, consisting of 16 Congressman hand-picked by Aldrich, was charted to study monetary systems and recommend long term solutions to the Nations "banking problems".
In November of 1910, the conspirators where planning for their grand coup. They came together at Jekyl Hunt Club, Jekyl Island, Georgia, to plan the take over of the American government. Those in attendance included: Senator Aldrich, Nelson Rockefeller's maternal grandfather; A. Piatt Andrew, Assistant Secretary of the Treasury; Frank Vanderlip, President of the National City Bank of New York, Paul Moritz Warburg, a German who was acting under orders from and financed by the Rothchild family; and Benjamin Strong, an aid of J.P. Morgan; and a host of others, representing the power elite of the banking world.
Realizing that whomever controls the volume of money in any nation is absolute MASTER of all industry and commerce, this group set upon its task of controlling the Nations money supply. As Mayer Amschel Rothchild, the grand master of international banking, was quoted:"Permit me to issue and control the money of a nation and I care not who makes its laws". Of the three methods of conquest of a Nation and its people: Military force, Religious control, or Economic control; economic conquest is the easiest to maintain, especially when it is done without the knowledge of those being conquered.
Senator Aldrich introduced into Congress in January, 1911, the fruits of the Jekyl Island meetings: the plan to establish yet another private, for profit, national bank that would have absolute and unquestionable control of the Nation's money supply. It was the German Rothchild representative Paul Warburg who coined the name: Federal Reserve, a title the he suggested would deceive the American people and the rest of Congress into believing it was a governmental institution that was to be created. In newspaper articles of the time, proponents declared that the Federal Reserve Act would:
All these assertions are blatant lies or at best vast
distortions. From among the opponents of the Bill, one lone
voice was heard above the rest in objection to this scheme: Charles
Augustus Lindbergh Sr. (the father of the famous flyer).
Lindbergh understood the nature of what the conspirators had put
together and declared that what this Bill constituted was the overthrow
of the American government and a scientific basis for the creation by
artificial means, inflations and depressions, which would eventually
steal the wealth from the American people. Lindbergh was
quickly discredited and did not live long thereafter.
These conspirators then set about to make sure that they had a favorable executive branch who would not oppose the Federal Reserve Act. They found their patsy in Woodrow Wilson, the Democratic Party nominee for President in 1912. Once small problem remained: Wilson didn't stand a snowballs chance in hell of being elected since the Republicans were then in the majority. The conspirators, needing to split the Republican vote, approach and eventually recruited Theodore Roosevelt to organize a splinter group of Republicans: The Bull Moose Party. With the Republican vote effectively split, Wilson was able to win the election with only 42 percent of the vote.
Over the Christmas recess, when barely enough Congressmen were available to achieve a quorum, certainly what little opposition existed was no where to be found, the Federal Reserve Act was passed (December 23, 1913). Wilson signed the legislation into law the very same day. Despite his campaign promise to veto the measure and the democratic platform that called for opposing a private National bank.
The story of this conspiracy and the intricate details of how this coup was accomplished is far too complex to address in the limited space
available to me here. However, a number of works exist that have well researched and in-depth exploration of this National disgrace and I will include a bibliography of some of these works at the end of this article. I encourage all who reads this to research this issue farther. Money and currency is, indeed, the most important issue of any Nation. As John Adams said in 1787:
"All the perplexities, confusion and distress in America arise, not from defects in their Constitution or Confederation, not from want of honor or virtue, so much as the downright ignorance of the nature of coin, credit and circulation."
It is this ignorance that has lead us to the be the virtual economic slaves to the international banking interests.
The National Debt
During the election of 1992, for one of the first times in our history, the National debt was a highly debated topic for the candidates. However, not a single one of the major party candidates ever bothered to tell the truth about the debt, where it came from, to whom it is owed and how the majority of it could be eliminated virtually overnight.
For all the talk of the National debt, the average American Citizen knows next to nothing about it. For every debt, you must have a debtor (the American Government) and a debtee (The Federal Reserve) to whom the debt is owed. You have just learned more about the National debt than 9/10th's of the Nation. To whit, the National debt is owed to the private institution known as The Federal Reserve.
The Federal Reserve Act of 1913 gave the power to coin and regulate the Nations money supply to a private concern that would operate on a for-profit basis. This was clearly a Constitutional violation of Article I, which specifically conveyed this power to Congress and Congress only. To illustrate how the Nation's money is created at profit; the United States Treasury is still responsible for the printing of the Nations paper currency. However, under the provisions of the Federal Reserve Act, it is not considered to be "money" after the Treasury has minted it. Instead, this paper is sold to the Federal Reserve at the rate of slightly more than $20.00 per 1 million bills, regardless of denomination. How this paper becomes "money" is for the Federal government to borrow it from
the Federal Reserve. But this money, since the Federal Reserve is a private for-profit organization, is borrowed at interest. Did you catch that? The Treasury Department (that we pay for) prints the bills, sells them to the Federal Reserve for next to nothing, then the Government borrows back this paper at face value plus interest!
It is the principle plus interest on the Nation's money supply that is termed: The National Debt. In addition to the interest on the "money" loaned, interest is accrued upon the interest itself (compound interest), helping to farther inflate the National Debt. And the real trick of the game the Federal Reserve plays, it's master coup upon the American people, is that the debt CAN NEVER BE PAID OFF because the interest amount is never created.
To better understand this, lets simplify the actions of the Federal Reserve system and the Nation's money supply. Suppose the Nation's money supply consisted of only $1,000,000.00 ($1m). It's the first year of America and this $1m figure was all that was needed to run the Government and private sector concerns. Using the principles of the Federal Reserve Act, the United States Treasury would print $1m in various denominations and sell them to the Federal Reserve, who would in turn loan then at interest back to the Federal government. To keep the math simple, let's suppose the terms of the loan called for 10% annual interest with the principle and interest payment due after one calendar year.
The American government spends the $1m into circulation and the economy grows during the next year. When the calendar year has ended, the Federal Reserve comes calling looking for its pay off of the loan. So, after one year the Federal Reserve is due $1.1 million ($1 million principle and $.1 million interest on the loan). There exists only one little hitch in this scenario... from where does the interest "money" come from? The Treasury only printed $1m but the terms of the loan called for interest to be paid on the principle. It is, therefore, impossible for this loan to be paid off. The only option the Government has is it to borrow more "money" to cover both the interest payment on the original loan as well as whatever additional funds are needed to keep the economy growing. As so it goes.... the National debt mounts and over time will become a virtual exponential increase, until the Nation no longer possess the means or tangible assets to cover the interest payments and secure additional loans. The term for this is BANKRUPTCY. This Nation is on the verge of bankruptcy and financial collapse because the American people and our "leaders" were ignorant as to the nature of coin, credit and circulation.
The Final Solution
There does exist a method of salvation, a measure that can be tak
en to pull America back from the brink of collapse. This measure, while requiring several steps, would mainly consist of performing the same action as our forefathers did when their National banks attempted to enslave the American people: dissolve them. The Federal Reserve Act should be repealed, today, this minute. The National debt could them be Nationalized and, with the exception of that small portion due private investors, the debt should be written off because of the fraud the Federal Reserve and its international backers have perpetrated upon the American people.
In order to prevent this situation from ever occurring again, a pair of Constitutional Amendments should be adopted that would strengthen Article I by a) prevent Congress from creating a National bank and, unconstitutionally, turning over its obligation to coin and regulate currency, b) forever more bar from Congress the power to borrow and c) prohibit the use of fiat currency and return this Nation, permanently, to the Gold Standard.
In the words of Thomas Jefferson:
"I believe that banking institutions are more dangerous to our liberties than standing armies. Already they have raised up a money aristocracy that has set the government at defiance. The issuing power (of money) should be taken from the banks, and restored to Congress and to the people, to whom it belongs."
"If the American people ever allow private banks to control the issue of their currency, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children will wake up homeless on the continent their fathers conquered."
How to Survive - and Profit from - the Coming Currency Recall by Rice & Ciabatoni, LibertyTree Press
Lindbergh on the Federal Reserve by Charles A. Lindbergh, Sr, The Noontide Press
The Federal Zone by Mitch Modeleski, Account for Better Citizenship
Bashed by the Bankers by Byron Dale, Pro-American Educational Foundation
The Federal Reserve and Our Manipulated Dollar, Liberty Lobby
Secrets of the Temple - How the Federal Reserve runs the country, by William Greider, Simon & Schuster
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