“Give me control of a nation’s money and I care not who makes it’s laws”
— Mayer Amschel Bauer Rothschild
The worlds banking system run by the ‘banksters‘ is nothing more than a Ponzi Scheme that is used to enslave the people, working in conjunction with the ‘CORPORATE‘ government entities and their legal system to control the ‘Construct’ set-up by ‘The Society‘.
The Spiders Web; Britain’s Second Empire – (https://youtu.be/np_ylvc8Zj8)
A Ponzi scheme is a form of pyramid scheme where earlier investors are paid with the money received from the original and later investors who come on board, as opposed to being paid from real returns from their original capital invested. The scheme therefore requires, and depends upon an ever-increasing flow of money from new investors in order to keep the ‘scam’ going. The compounding effect begins as the ‘broker’ usually starts to live a lavish lifestyle from the investor’s capital or money, presenting all the trappings of success to perpetuate the scheme, which then draws in new investors to the Ponzi scheme. People are attracted to and trust those that seem to exude a successful image.
Many people have unwittingly been caught-up into these Ponzi schemes, initially being fooled into enjoying the higher than usual returns as promised by the broker(s) heading the supposed investment of funds, and only when these large returns from initial payments from the original investment are not met due to the funds drying up, lack of new investors, or when the investor is unable to exit and retrieve what remains of their initial capital investment from the portfolio, only then are the red flags raised, an indication that something is not right, and in most cases, it from this point on that it is probably too late to withdraw, as the money has already been spent or gone.
As the compounding effect escalates where more and more investors are coming on-board to help pay the original investors promised percentage of return, along with their returns, the broker ‘prays’ that the flow of new investors into his scheme do not dry-up, for if they do, the game is over.
These schemes usually collapses for two reasons, the first is that the broker(s) become too greedy and outstrip the capital invested faster than it can be introduced by new unaware investors, or second, an event such as an economic crisis surfaces and the market tightens its belts causing a collapse.
In both cases, the unlucky investors are the ones who realise too little, too late what has actually taken place, usually only after a default on their payments for capital invested has not been met by the broker(s) indicating the Ponzi scheme has reached its point of collapse. This is usually when the broker(s) are caught, or just disappear. This is just what the western worlds banking system is – IT’S A PONZI SCHEME.
The following information by Ellen Brown, December 29th, 2008 http://www.webofdebt.com/articles/ponzi.php, provides an insight into the western worlds ‘Reserve‘ banking system and how this private (NOT Government) entity treasonously operates.
“Banks themselves are also involved in a sort of Ponzi scheme, one that has been perpetuated for hundreds of years. It is called “fractional reserve” lending, the only difference being is that this scheme that the bankers’ have created is protected by government charter and backstopped with government funds. At last count, the Federal Reserve and the United States (U.S.) with this banking scheme has reached its mathematical limits and needs to be superseded by something more sustainable.”
What is fractional reserve lending and how it works is summed up in Wikipedia as follows: “Fractional-reserve banking is the banking practice in which banks keep only a fraction of their deposits in reserve (as cash and other liquid assets) with the choice of lending out the remainder, while maintaining the simultaneous obligation to redeem all deposits immediately upon demand. This practice is universal in modern banking. . . .The nature of fractional- reserve banking is that there is only a fraction of cash reserves available at the bank needed to repay all of the demand deposits and banknotes issued. . . . When Fractional-reserve banking works, it works because:
- Over any typical period of time, redemption demands are largely or wholly offset by new deposits or issues of notes. The bank thus needs only to satisfy the excess amount of redemptions.
- Only a minority of people will actually choose to withdraw their demand deposits or present their notes for payment at any given time.
- People usually keep their funds in the bank for a prolonged period of time.
- There are usually enough cash reserves in the bank to handle net redemptions.
“If the net redemption demands are unusually large, the bank will run low on reserves and will be forced to raise new funds from additional borrowings (e.g. by borrowing from the money market or using lines of credit held with other banks), and/or sell assets, to avoid running out of reserves and defaulting on its obligations. If creditors are afraid that the bank is running out of cash, they have an incentive to redeem their deposits as soon as possible, triggering a bank run.”
“Just like other Ponzi schemes, bank runs result because the bank does not actually have the funds necessary to meet all its obligations.” The question now is how did the creators of this scheme come to not only introduce the scheme, but more importantly acquire the government protection for this criminal activity? A review of the history regarding the evolution of modern-day banking may be revealing.”
– Ellen Brown
In layman’s terms it can be described this way; The western banking system works basically the same in every country, so by using the country that has the nominated ‘world currency’, the U.S. Dollar, will be the best example to use for explaining this system. Let’s say by assuming that all the money (which should technically be described as ‘currency’) in our banking system was ALL collected and returned to the ’Federal Reserve’ bank, this is the organisation in the U.S. or the entity that introduces the currency into the banking system for the economy. So now all this currency (aka – money) has been collected from circulation, there is no currency in circulation.
To introduce the currency back into the economy, using our current banking system, the ‘Treasury’ department of the government will need to issue a ‘government bond’ – a bond is nothing more than a fancy looking piece of paper, it’s simply an ‘IOU’. Let’s place a figure on that ‘bond’ for say a $1,000. The Treasury will issue that bond to the banks, where the bank will then take it to the Federal Reserve, exchanging that bond for money.
The Federal Reserve upon receiving the bond will then write a cheque for a $1,000 to match the amount on the ‘Treasury Bond’. This cheque is written-up from an account that has a ‘zero’ or ‘nil’ balance. It is the first step of the scheme. If you or I were to write a cheque from a bank account with a nil balance in it, then proceed to submit that cheque for goods or services, we would be committing fraud and no doubt be prosecuted for undertaking this action. Unfortunately, the banks are immune by government policy from being accused of such fraudulent activity.
Now, once that $1,000 has been created and placed into the bank, this $1,000 has to be paid back with interests! So the question is; where does the interest come from if there is only $1,000 in the system? In short – our banking system is a debt base system; it only works if there is debt. That means the debt can never be paid down or the system will fail, it always requires debt!
The cheque from the ‘Federal Reserve’ is then taken by the bankers and placed into their bank accounts. It then shows up on their balance sheet as $1,000, this is how money is created. Now after the $1,000 is placed in the banks vault, they are only required to retain 10 percent of the full amount as capital reserves or liquidity.
Let’s put this into perspective. Say a customer decides to place their money into a bank in the amount of $1,000. On the banks balance sheet there will be $1,000 on the books. According to the banks regulations under the Reserve banking system, ten percent of the customers total must remain in the bank; this is due to the requirement where, should the individual wish to draw on their funds, there are reserves of cash. The banking system therefore works on what is called a ‘fractional reserve’ lending system, this means that the bank which has just received the $1,000 deposit can now lend out 90 percent of the funds, that is $900.
So, say another individual takes out a loan from this same bank on that $1,000 invested. Because 10 percent has to be kept in the bank, it means only 90 percent or only $900 is now available for lending on goods or services, leaving $100 in the till. This now means, $1,000 has been deposited on the balance sheet, and $900 has been loaned, therefore, the balance sheet will show $1,000 on the books, and now $900 has been created out of thin air to be loaned to the next person from the original $1,000. So now we have $1,900 on the balance sheets, which $900 of that will probably be placed into another bank.
Now, the $900 loaned means an IOU has to be placed in the till of the original bank to keep the books balanced, so when this $900 is placed into the next individuals account or another bank, as the bank is only required to retain 10 percent of that $900, which is $90. Once the $900 has been placed into the next account that means this bank is able to generate a loan(s) for $810 or 90 percent of the original $900. We can see another $810 has been created out of thin air.
This process is duplicated and will go on-and-on down the line. This form of banking is called “fractional reserve lending”, so from the initial money placed into the first bank, the banks can then continue lending out money by only retaining 10 percent in the bank till for the depositor, which then turns the original cash reserve from $1,000 into $10,000 of bank credit, all of this created out of thin-air, MAGIC! It is the biggest scam in the history of mankind.
This money generated from the ‘Reserve’ banking system, that is the original $1,000 dollars that has now been injected into the economy also ‘has’ to be paid back with interest! If we have an economy with no money in it, and $1,000 dollars is then introduced into the system, where does the money come from to pay back this interest? So you should now be able to see, not only is the system fraudulent when introducing the money from a cheque account with a ‘nil’ balance, it is also based on ‘debt’, the whole system runs on debt.
For every dollar placed in the system, each of those dollars has to be paid back with interest, and to keep the system from collapsing, the banks have to continually find more and more people to take on loans to create more debt, therefore, this system is ultimately designed so the debt can never be paid back. It is designed so if the debt was paid back then the system would fail. The debt has to be continually kicked down the road with the burden growing on each generation, until this system, which is supposedly too big to fail, will eventually collapse under its own debt. A.K.A. – ‘Ponzi Scheme’. The bank has created a mathematically impossible situation.
In addition to this, it is beneficial to know and understand the only reason you pay taxes is not because of what is called ‘National Debt’, this name has only been created to mislead the people of the country into thinking it must be paid due to economics, the National Debt is payment of the interest on the money they created out of a cheque account with ‘nil’ balance, money created out of thin air, to be paid back to the banks. Your taxes pay interest on imaginary money – that’s it!
The only solution at present to remove ourselves from this situation is to have the banks and corporate governments removed and replaced by the ‘true’ government of each nation as reflected in their respective constitutions (written or not), which requires the people re-establishing their rightful ‘Sovereignty’.
Instead of taxes, governments would be empowered to create money for its own expenses up to the balance of the debt shortfall. In the U.S. the private banking industry pockets the interest, which must be replaced every year by a 10 percent issue of new bank notes; but there is another possibility. The loans could be advanced by the government itself. The interest would then return to the government and could be spent back into the economy in a circular flow, without the need to continually issue more money to cover the interest shortfall.
“The refusal of King George III to allow the colonies to operate an honest money system, which freed the ordinary man from the clutches of the money manipulators, was probably the prime cause of the revolution”. Benjamin Franklin, Founding Father Ellen Brown continues with– “The fractional reserve Ponzi scheme is bankrupt, and the banks engaged in it. This would make them truly “national” banks, which could dispense “the full faith and credit of that nation as a public utility.
A truly national banking system could revive the economy with the sort of money only governments can issue – debt-free legal tender. The money would be debt-free to the government, while for the private sector, it would be freely available for borrowing at a modest interest by qualified applicants. A government-owned bank would not need to rob from Peter to advance credit to Paul. “Credit” is just an accounting tool – an advance against future profits, or the “monetisation” (turning into cash) of the borrower’s promise to repay.
As British commentator Ron Morrison observed in a provocative 2004 article titled “Keynes Without Debt”:
“[Today] bank credit supplies virtually all our everyday means of exchange and this brings into sharp focus the simple fact that modern money is no longer constrained by outmoded intrinsic values. It is pure fiat [enforced by law] and simply a glorified accounting system. . . . Modern monetary reform is about displacing the current economic paradigm of ‘what can be afforded’ with ‘what we have the capacity to undertake.’”
The objection to government-issued money has always been that it would be inflationary, but today some “reflating” of the economy could be a good thing.
Rather than throwing money at a failed private banking system, public credit could be redirected into infrastructure and other projects that would get the wheels of production turning again.
The Ponzi scheme in which debt is just shuffled around, borrowing from one player to pay another without actually producing anything of real value, could be replaced by a system in which the national credit card became an engine for true productivity and growth. Increased “demand” (money) would come from earned wages and salaries that would increase “supply” (goods and services) rather than merely servicing a perpetually increasing debt. When supply keeps up with demand, the money supply can be increased without inflating prices. In this way the paradigm of “what we can afford” could indeed be superseded by “what we have the capacity to undertake.”
There are limits, however, to the amount of support even the government’s deep pocket can provide. In the past two decades, the bankers’ lending scheme has been kept going by an even more speculative scheme known as “derivatives.” This is a complex subject that has been explored in other articles, but the bottom line is that more dollars are now owed in the derivatives casino than exist on the planet. (See Ellen Brown, “It’s the Derivatives, Stupid!” and “Credit Default Swaps: Derivative Disaster Du Jour,” How did the ‘Federal Reserve’ banking system come into existence?
Starting with the Jekyll Island history an article By Tyler E. Bagwell titled “The Jekyll Island duck hunt that created the Federal Reserve” sets the scene for this ominous account that leads us into the modern day banking system.
“In October of 1907 several banking firms, starting with the Knickerbocker Trust Company of New York, collapsed as depositors withdrew funds for fear of unwise investments and misuse of money. Lines of people waited in front of the Knickerbocker to close their accounts. Days later, the Trust Company of America had droves of depositors removing their money. Then, shortly thereafter, a run took place at the Lincoln Trust Company. Across the country apprehension that the panic would continue to spread occurred. In the fall of 1907 the United States was in a recession, it’s banking system lacked a lender of last resort mechanism, and an intricate network of directorships, loans, and collateral bonded the fate of many financial institutions together.
Several banking leaders including Jekyll Island Club members George F. Baker, president of the First National Bank, and James Stillman, president of National City Bank, met with financier J. Pierpont Morgan and began examining the assets of the troubled institutions. A decision was made to offer loans to any of the banks that were solvent. The secretary of the treasury George B. Cortelyou was eager to divert the situation and offered the New York bankers use of government funds to help prevent an economic disaster. President Theodore Roosevelt, while the panic of 1907 transpired, was on a hunting trip in Louisiana.
Ron Chernow in his book The Death of the Banker offers this account of the 1907 Panic, “In the following days, acting like a one-man Federal Reserve system, [J. Pierpont] Morgan decided which firms would fail and which survive. Through a non-stop flurry of meetings, he organised rescues of banks and trust companies, averted a shutdown of the New York Stock Exchange, and engineered a financial bailout of New York City.” In the end, the panic was blocked and several young bankers including Henry P. Davison and Benjamin Strong Jr. were recognised for their work organising personnel and determining the liquidity of the banks involved in the crises. In 1908 J. Pierpont Morgan asked Henry P. Davison to become a partner in his firm J. P. Morgan & Co. and in 1914 Benjamin Strong Jr. was selected to be the first president of the Federal Reserve Bank of New York.
Soon after the 1907 panic, Congress formed the National Monetary Commission to review banking policies in the United States. The committee, chaired by Senator Nelson W. Aldrich of Rhode Island, toured Europe and collected data on the various banking methods being incorporated. Using this information as a base, in November of 1910 Senator Aldrich invited several bankers and economic scholars to attend a conference on Jekyll Island. While meeting under the ruse of a duck-shooting excursion, the financial experts were in reality hunting for a way to restructure America’s banking system and eliminate the possibility of future economic panics.
The 1910 “duck hunt” on Jekyll Island included Senator Nelson Aldrich, his personal secretary Arthur Shelton, former Harvard University professor of economics Dr. A. Piatt Andrew, J.P. Morgan & Co. partner Henry P. Davison, National City Bank president Frank A. Vanderlip and Kuhn, Loeb, and Co. partner Paul M. Warburg. Nelson Aldrich and Frank Vanderclip represented the Rockefeller financial empire, Henry Davidson, Charles Norton and Benjamin Strong represented J.P. Morgan, and Paul Warburg represented the Rothschild’s Banking dynasty of Europe.
From the start the group proceeded covertly. They began by shunning the use of their last names and met quietly at Aldrich’s private railway car in New Jersey. In 1916, B. C. Forbes discussed the Jekyll conference in his book Men Who Are Making America and illuminates, “To this day these financiers are Frank and Harry and Paul [and Piatt] to one another and the late Senator remained ‘Nelson’ to them until his death. Later [following the Jekyll conference] Benjamin Strong, Jr., was called into frequent consultation and he joined the ‘First-Name Club’ as ‘Ben.’” This book as well as a magazine article by Forbes is the only public mention to the conference until around 1930, when Paul Warburg’s book The Federal Reserve System: Its Origin and Growth and Nathaniel Wright Stephenson’s book Nelson W. Aldrich: A Leader in American Politics were published.
Nathaniel Stephenson, in the Notes section of his biography on Senator Aldrich, suggests that B.C. Forbes learned of the Jekyll conference from an incident taking place at the Brunswick train depot. Stephenson writes, “In the station at Brunswick, Ga., where they ostentatiously talked of sport, the station master gave them a start. ‘Gentleman,’ said he, ‘this is all very pretty, but I must tell you we know who you are and the reporters are waiting outside.’ But Mr. Davison was not flustered. ‘Come out, old man,’ said he, ‘I will tell you a story.’ They went out together. When Mr. Davison returned he was smiling. ‘That’s all right,’ said he, ‘they won’t give us away.’ The rest is silence. The reporters disappeared and the secret of the strange journey was not divulged. No one asked him how he managed it and he did not volunteer the information.” From the Brunswick train station the men boarded a boat and travelled on to Jekyll Island.
The Jekyll Island conference offered a secluded location to discuss banking ideas and enabled the development of a plan that eventually became the Federal Reserve Banking System. The Federal Reserve System is the name given to the twelve central banks regulating America’s banking industry and it insures that depositors will not lose their money in the event of funds mismanagement from an accredited bank. Paul Warburg in his book The Federal Reserve System: Its Origin and Growth explains the reason for secrecy behind the meeting. He states, “It is well to remember that the period during which these discussions took place was the time of the struggle of the financial Titans- the period of big combinations [of businesses], with bitter fights for control. All over the country there was a deep feeling of fear and suspicion with regard to Wall Street’s power and ambitions.”
Obtaining permission from J. Pierpont Morgan to use the facilities of the Jekyll Island Club, the conference attendees most likely resided in the clubhouse for about ten days. The meeting required long days and late nights of contemplation and reflection. European banking practices were assessed and numerous conversations held regarding the best way to craft a non-partisan banking reform bill. Paul Warburg in the book Henry P. Davison: The Record of a Useful Life recalls, “After we had completed the sketch of the bill, and before setting down to its definitive formulation, it was decided that we had earned ‘a day off’ which was to be devoted to duck shooting.” The Jekyll Island Club was originally formed in 1886 as a hunting preserve and in the 1910s was well stocked with animals such as pheasants and wild hogs. Several ponds on the island attracted numerous game birds and wild ducks.
William Barton McCash and June Hall McCash in the book The Jekyll Island Club: Southern Haven for America’s Millionaires offers this narrative of the Jekyll conference. They mention, “How long the surreptitious meeting lasted is uncertain, although the group spent Thanksgiving on the island, where they dined on ‘wild turkey with oyster stuffing.’ They worked throughout the day and night, taking only sporadic time out to explore Jekyll and enjoy its delights. Aldrich and Davison were both so taken with…[Jekyll Island]… that they joined the club in 1912.”
For years members of the Jekyll Island Club would recount the story of the secret meeting and by the 1930s the narrative was considered a club tradition. The conference’s solution to America’s banking problems called for the creation of a central bank. Although Congress did not pass the reform bill submitted by Senator Aldrich, it did approve a similar proposal in 1913 called the Federal Reserve Act. The Federal Reserve System of today mirrors in essence the plan developed on Jekyll Island in 1910.
Unknown to most people, the Federal Reserve is no more “federal” than Federal Express. It is a private institution. Through the Federal Reserve, the “banksters” could loan money, shape the world landscape, and become one of the most powerful organisations in the world.
Here’s how the Federal Reserve and the Titanic are connected. The ‘Federal Reserve’ did have some opposition, [Metatech – Usr:8127] Three of the richest and most important of the opponents were Benjamin Guggenheim, Isador Strauss, the head of Macy’s Department Stores, and John Jacob Astor, probably the wealthiest man in the world. Their total wealth, at that time, using dollar values of their day was more than 500 million dollars. Today that amount of money would be worth nearly eleven billion dollars. These three men lost their lives on the ill-fated ‘Titanic’ sinking. Coincidence? All three men who were opposed to the Federal Reserve, died during the sinking of the Titanic.
J.P. Morgan, the individual contracted to build the Titanic was scheduled to be on the maiden voyage, but cancelled his trip. The Federal Reserve was installed as part of the Federal Reserve Act in December of 1913; roughly one year and eight months after the Titanic tragedy, and World War I was ignited less than a year later. Theorists believe that the Federal Reserve and the Jesuits were responsible for funding the United States, Germany, and Russia in the war.
Once the opposition was removed, these men represented at Jekyll Island used their power and wealth to finally destroy the ‘Republic of America‘ and begin spreading their tentacles around the world, ending up where we are today.
The following is an article on “A Historical Perspective: The Banking Monopoly” by Stack Jones in The History Of Banking Fraud on 20/02/2014:
Introduction: The Federal Reserve Act Of 1913.
In 1913, the U.S. Congress passed a bill called the Federal Reserve Act. This bill allowed an independent, non-government group to privatise, and take control of America’s monetary system. The Federal Reserve Bank’s name was chosen by this group to deceive the American people into believing that it was a branch of the U.S. government. It isn’t! This privately held monopoly continues to give great power to a handful of international bankers, non- Americans, to issue America’s money, to set interest rates on it, to finance endless wars, and to enslave the masses. This debt based monetary system is what has been destroying the American economy, and bringing about depressions for generations. It needs to come to an end. By any means necessary.
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, thereby creating massive debt that must be paid by the American people.
- This privately held organisation pays no taxes on the trillions of dollars it makes.
The Federal Reserve was chartered by an act of deceit, through an act of congress when most had gone home for Christmas holiday on December 23rd, 1913. The Federal Reserve Act of 1913, had passed the house, but it was having difficulty getting through the senate. No recess had been called, while nearly every senator had gone home. Only three senators passed the act with a unanimous voice vote, 3-0. There were no objections. If there had been one person present in the absence of a quorum, the bill would not have 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 it has usurped the government.” After these very same bankers used their concerted efforts to malign McFadden, he lost his congressional seat in 1934. Regardless, McFadden remained in the public eye as a vigorous opponent of the financial system, until his sudden death, which occurred on October 3rd, 1936.
There had been two previous attempts on McFadden’s life. The first where two bullets were fired at him on one occasion. The second attempt at taking his life, McFadden 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 wrote, “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 wrote, “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.
The Money Changers.
When Hebrews went to the temple to pay their temple tax, they could only pay it with a special coin, it was the only coin that was pure silver, and didn’t have the image of the pagan emperor on it. The half shekels were not plentiful; as a result the money changers cornered the market on the coins, and raised the price, making huge profits because they held a monopoly on the money. 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 (the action or practice of lending money at unreasonably high rates of interest), 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 was able to construct 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., and throughout history. With the demise of common money, the masses lost confidence in their government, and refused to support them. As for Rome, it 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. Those that lend money for excessive fees, and those that manipulate the quantity of money available to the public, 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, who were in reality, the first bankers. They kept other people’s gold for safe keeping in their private vaults.
The first paper money originated as a receipt, as proof that gold, and silver coins were left with the goldsmith to store in their secured vaults. Over time, paper money became the norm because it was more convenient than carrying sacks of heavy gold and silver coins. The goldsmiths eventually noticed that only a small fraction of people returned to demand their gold, at any one time. Goldsmiths then started cheating on the system, and discovered they could print more money than they had in actual gold. The goldsmiths would then loan out that extra money, and collect interest on it, and not pay any interest to depositors. This was the birth of Fractional Reserve Banking, which is loaning out many times more money than the assets that are available 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 continued to use this criminal enterprise to accumulate more, and more gold.
Today the practice of loaning out more money than there is gold in deposit 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 how bankers get unjustly rich, by charging interest on money they don’t actually have.
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 centre of London, known as the city of London. This area is still known as one of the three prominent financial centres 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. 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 investor’s 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 every 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 (a state or society governed by the wealthy / an elite or ruling class whose power derives from their wealth) 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.
The Rothschild’s: 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 individuals. 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 it 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 Francs, 150 million more than all the other banks in Europe combined.
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 endeavour 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 the 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.
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 modelled 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 into the bank, which had been loaned to America by France. Morris then loaned the 400,000 to himself and his friends 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 and 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.
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, Governor Morris castigated the motivations of the owners of the Bank of North America. Governor 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, Governor 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 them in their proper spheres.”
Despite the defection of Governor 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. They 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.
The First Bank of the United States.
Only three years after the signing of the 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 stabilise 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.
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 honour 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, with the news of Napoleons defeat 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. Very soon Nathan Rothschild had manipulated the economy, dominated the bond market as well as the Bank of England, which resulted in the Rothschild’s becoming the richest family in the world by the mid-1800s. 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 libellous, but the court denied the Rothschild family request and ordered the Rothschild to pay all court costs.
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. 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 18, 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 re-election 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.
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 undo the damage Jackson had caused it.
When asked what his most important accomplishment had been, Jackson was quoted as saying, “I killed the bank.” 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 fuelled economic instability in the years before the civil war. Still the central bankers were out and as a result and American thrived as it expanded westward.
The central bankers struggled to regain power of the bank, but to no avail, until finally they reverted to the old central banker’s 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 chartered again.
One month after the inauguration of Abraham Lincoln, the first shots of the Civil War were 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 protectionists 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 stated; “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 state’s 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 colonisation 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 agonised 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, where 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 a meeting Taylor told Lincoln, “Just get Congress to pass a bill authorising 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 1862-1863, 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 and 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 banker’s 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, and 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 and the treasury was in need of further authority to issue more green backs. Lincoln then 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, their 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, and retire its securities, because to do so meant there would be no bonds to back the national bank notes. In short – 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 clutches of the bankers, the Czar’s position would remain secure. If the bankers were successful in dividing America, and giving the pieces back to both Britain and France, and allow both nations to take back 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 as declaration of war. Alexander II then sent part of his naval fleet to port in San Francisco.
Lincoln was re-elected 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 General Lee from the south surrendered to Grant, Lincoln was shot by John Wilkes Booth at Ford’s Theatre. 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 civilisation. 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.
- 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 phoney 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 purchaser’s 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 whose 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 centralised overall control of the U.S. nation’s 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 recognised for what it was and it was quickly recognised as the banker’s 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 Jacksonian’s became the green-backers, 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.
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 legalised. 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 week’s earlier congress had legalised a bill legalising 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 realised 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 banker’s 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 criticising 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 banker’s 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 civilised 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 organised, 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 realised 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.
World War I: Power To Wage War and Profit From It.
Power was now centralised 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 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 Rockefeller’s 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 funnelled 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. Lennon 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 Dnieper Story 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 First World War started between Austria-Hungary and Serbia, but quickly shifted to focus to Germany, whose industrial capacity was seen as an economic threat to Great Britain, who saw the decline of the British Pound as a result of too much emphasis on financial activity to the neglect of agriculture, industrial development, and infrastructure (not unlike the present day United States).
Although pre-war Germany had a private central bank, that bank was heavily restricted, and inflation kept to reasonable levels. Under government control, investment was guaranteed to internal economic development, and Germany was seen as a major power. So, in the media of the day, Germany was portrayed as the prime instigator of World War One, and subsequently, not just defeated, but had its industrial base flattened.
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.
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, rumours 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 generalisations, 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 organisations, 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 marvelled 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.”
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 subsidised 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.”
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.
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 nationalised 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 organisations. 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 emphasising 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, let’s 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 is America over their heads in debt?
Because we’re labouring 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 honourable 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 stabilising 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 include 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, foreigner’s 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.
What can we do about all this?
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. The fraudulent Reserve Banking System in operation around the western world needs to be removed; it affects the whole world…and if successful will soon control the whole world.
Do you want this for your children or yourselves?
(Kenneth Storey: ‘Global Currency Reset Begins’ – https://youtu.be/M7QMMqyEl_I)