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."
Selected Bibliography
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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