The Federal Reserve System (Fed) either began or was started by wealthy people who wanted more control worldwide of the banking system. It is now a means for other nations to dominate the United States banking system and is a major aid to those who want world government and an international currency in place of the American dollar. To achieve this goal, the economic system of the U.S. must collapse. Consequently, the Fed, with the aid of ACORN, created a "bubble" of bad loans for U.S. lending agencies. This was done by reducing the interest rates on the loans and having ACORN pressure the lending agencies to lend at the low interest rates - variable interest loans were used and the interest rates were raised again after a time so that the borrower could not pay off the loan, leading to a crisis where people were losing their homes and the lending agencies were stuck with homes that they could not sell. This was a part of the economic crunch that we are now in.
It appears that it is still possible for the United States economy to recover from the bubble created by the Fed and ACORN. So now the Fed is busy creating another bubble designed to kill the U.S. economy for good - so that a worldwide Communist economy can take over.
The actions of the Fed are not audited, and Soros along with other billionaires are involved
in its workings as well as stock market manipulation. There has been a movement
to audit the Fed - and it should be audited. Once its secret deals have been exposed,
legislation might be created that eliminates the Federal Reserve System entirely.
A full explanation of the creation of the Fed and its workings follows.
The Colonial Period
The early settlers in America had no capital resources, and needed money to transact their
businesses. This fact led to "land" banks being organized by the colonists under
English rule. Holders of stock in these banks pledged their land as security
for bank notes which then circulated as money. However, the notes were issued in
excess, and note holders often experienced difficulty in exchanging their paper for coins.
Coins at that time were usually based upon the British pound and the Spanish dollar.
The Post-Revolutionary Period
Following the American Revolution, there were little or no restrictions on the formation of banks. As a result, many attempts were made in many states to found banks which would be recognized as official. Such banks received their charters and official support from the state, and sometimes the state owned shares of the banks. In many communities, local banks were established which took the name of the state banks even though their shares were owned by the public - and in some instances they were private partnerships. Most of these banks issued currency and engaged in lending. However, there was no real volume of deposits because there was no general surplus of wealth in the country.
In 1785, under the Articles of Confederation, Congress adopted the dollar as the monetary
unit. And in 1792, the Mint Act provided for national coinage in silver and gold.
The Federal Banks
The first bank to be chartered by Congress was the Bank of North America, which was organized in Philadelphia in 1781 - but the first bank of national importance was Bank of the United States which began business in Philadelphia in 1791 with a worth of $10 million and a charter of incorporation for a period of 20 years. This bank was intended to be the federal government's bank as $8 million of its capital was subscribed by the public and $2 million by the government. The bank did well, but experienced serious political opposition from Americans who feared the centralization of power in the federal government. Congress refused to renew its charter and the bank was liquidated in 1811. It met its obligations in full.
The second Bank of the United States was chartered in 1816, with 20 of its directors chosen by stockholders and 5 appointed by the President. It had a subscribed capital of $35 million, and issued notes in denominations of $5 and over which were legal tender equal to treasury notes. This bank was successful but also met with political opposition and was forced to close when its charter expired in 1836.
During subsequent years, there was a considerable increase in local banks. Up until
this time, bank notes were the primary accepted means of payment. When large amounts
of gold and silver became available for coinage and gradual adoption of bank checks as means
of payment, bank notes were no longer so indispensable. During these years, bank
failures were fairly common, and attempts were made to organize banks into groups for the
purpose of insuring deposits. Member banks deposited a percentage of their capital
annually with the treasurer of the state until they had paid a certain total percentage.
If a bank became insolvent, the fund was to be used to pay the debts and redeem the
notes of the bank. However, such a system did not prevent suspensions and failures
among the associated banks, primarily because the period was one of general expansion in
which times of inflation were followed by times of crisis and panic.
The National Bank Act
Gold and silver coin remained the only legal tender until the Civil War when irredeemable federal currency (the "greenback") was declared legal tender for payment of all private debts. During the war gold and silver largely disappeared from circulation and paper money depreciated in value. In 1879, the government began redeeming greenbacks almost entirely in gold.
Monetary confusion had resulted from each bank issuing its own currency. This climaxed during the Civil War years as the supply of paper currency vastly expanded and its purchasing power nearly vanished. To cure the problem, the national banking system was established by Congress through adoption of the National Bank Acts of 1863 and 1864, which provided for a uniform currency throughout all of the states. Under the new law, banks were required to pledge United States bonds with the Treasury to secure their note issue. A tax of 1 percent of their average issue was collected from banks that entered the national system, and the note issues of state-chartered and other non-member banks were taxed at a rate of 10 percent. The Office of the Comptroller of the Currency was also established which helped to stabilize the system by checking on the soundness of charter banks.
The National Bank Act not only established a stable and valid currency, but it also provided a market for government bonds which aided the government in financing large ventures such the costs of the Civil War and the reconstruction needed thereafter. Under the acts, the national banks increased rapidly in number.
Under the new system, bank reserves were not concentrated where they would be available in time of need, and there was no efficient system for clearing checks among the states. The new system also failed to provide for the establishment of branches of American banks in foreign countries, and growing overseas business of the country made such facilities a necessity.
The Gold Standard Act of March 14, 1900, established gold as the standard for U.S. currency. In the year 1900, the United Stated entered into a period of unprecedented growth, supported by steadily increasing production of industries and farms. The banks reflected this growth. In 1900 there were 10,382 banks of all classes in the United States. In 1920, the number had grown to 30,189. However, the number of banks declined after 1920 until in 1953, there were only approximately 14,575. This was due to a trend toward larger and more stable banking and better means of transportation and communication.
In 1907, there was a steady decline in the stock market and the situation was brought to a climax in October with the suspension of the Knickerbocker Trust Company in New York. Suspensions of other banks followed. J.P. Morgan quickly loaned $25 million to the New York banks and the government increased bank deposits by issuing Panama Canal bonds and permitting the banks to retain 90 percent of the proceeds on deposit. The crisis was short-lived but led to a realization of the economic dangers of "inelastic" currency. As a result, the Aldritch-Vreeland Act of 1908 authorized the issue of emergency currency by groups of banks organized as "national currency associations". None of this emergency currency was issued until the financial disorganization from World War I necessitated the issue of $1,121,000,000 of such notes in 1914.
The national bank notes in the United States offer an object lesson of the shortcomings of a bond-secured currency. These notes were inversely elastic because it was to the interest of the banks to sell bonds and retire their notes in anticipation of increased business activity which would cause bond prices to decline. In other words, they would sell bonds and retire notes at the very time when business needed more currency. Conversely, it was to the interest of the banks to buy bonds and force notes into circulation when business had no need for additional currency. When all of the government bonds carrying currency issue privilege were retired, it was no longer possible to issue national bank notes.
Prior to 1933, the currency of the United States could be redeemed in gold. In 1933,
the gold certificates were withdrawn from circulation and national bank notes were eliminated.
Silver certificates and "greenbacks" remained as currency. The Gold Reserve
Act of January 30, 1934, called for the government to take possession of all monetary gold
in the country and, in essence, made gold the property of the government from whatever source
is should come. Gold could only be used (1) by the Federal Reserve banks for settling
international debts; (2) for industrial, artistic, or professional use; and (3) for such
other purposes as the Secretary of the Treasury deems consistent with the purposes of the
act. Today, our currency is not backed by anything but faith. If the communist
triumvirate is not stopped, our currency will be worthless.
Beginning of the Federal Reserve System - Aldritch
Nelson Wilmarth Aldritch was an American legislator born in Foster, Rhode Island on November 6, 1841. He was the son of a farm family of "modest means". At age 17 he went to work in Providence and by age 24 he was a partner in the largest wholesale grocers' firm in Rhode Island. In later years the firm had extensive interests in banking, sugar, rubber, and utilities.
After a time, Aldritch decided to devote himself to politics rather than business. He was a Republican member of the Providence common council (1869-1875), the state legislature (1875-1876), and the national House of Representatives (1879-1881). In 1876 he won the Senate seat made vacant by the death of General A. E. Burnside, and at the same time establishing his control of Republican politics in the state of Rhode Island.
Aldritch had a strong, attractive personality, and he soon entered the inner circle of Republican leadership in the Senate. He was now secure in his political position in his home state, had great skill as a parliamentary tactician, and expert knowledge of economic and financial matters, considerable wealth, and many business connections. These qualities made him indifferent to public opinion - and he stuck to his conservative principles, representing the interests of eastern industrial, commercial, and financial groups in resisting the demands for tariff and monetary reform from the west. He consistently supported high protective tariffs and the gold standard [too bad he was not here to keep us from getting off of it]. He led the Senate in its struggle with Theodore Roosevelt for dominance in the government, yet relations between the two men were generally amicable and mutually respectful.
The great interest of Aldritch' last years was a plan for banking reform [which was badly needed at the time]. As a result of the panic of 1907, the Aldritch-Vreeland Act was born, providing for the creation of a National Monetary Commission of which Aldritch became chairman to investigate the banking problem. Studies of European banking and currency systems in 1908 and consultations with American bankers preceded the publication in 1911 of the "Aldritch Plan", which contained many features which were later embodied in the Federal Reserve Act of 1913.
Aldritch retired from the Senate in 1911 and died in New York city on April 16, 1915.
The propaganda for the public to digest as fact states that the Federal Reserve was created to stabilize our economy. In fact, it has not done so. As Griffin stated in his book, The Creature from Jekyll Island, it presided over the crashes of 1921 and 1929; the Great Depression of 1929 to 1939; the recessions of 1953, 1957, 1965, 1975, and 1981; a stock market "Black Monday" in 1987; and 1,000 percent inflation which has destroyed 90 percent of the purchasing power of the dollar.
The actual reasons that the cartel created the Federal Reserve were:
1. To stop the growing influence of small rival banks, and to insure that
control over the nation's financial resources would remain in the hands of those
who created the cartel.
2. To make the money supply more "elastic" in order to reverse the trend of
private capital formation, and to recapture the industrial loan market.
"Elastic" actually means "quickly and easily increased" - and this has reached its
zenith with today's electronic accounting.
3. To pool the meager reserves of the nation's banks into the large reserve
so that all banks will be motivated to follow the same loan-to-deposit ratios.
This would protect at least some of them from currency drains and bank runs.
But there is no large reserve - it is all an electronic counterfeiting system -
an illusion created to fool the taxpayer while the inflation it creates provides a
huge tax that is invisible.
4. In case of the foregoing leading to collapse of the entire banking system,
the losses were to be shifted to from the banks to the taxpayers.
5. To create a deception that would convince Congress that the scheme was a
meaure to protect the public. The name "Federal Reserve" was created to avoid
the word "bank" which immediately frightened the "masses". By using the word
"federal", the people of the time (1910) would be lulled into thinking that the
government was taking care of them. In reality, the Fed is not Federal
nor does it have a reserve.
A Barton Hepburn in a speech a to the Chase National Bank stated of the Federal Reserve:
"The measure recognizes and adopts the principles of a central bank. Indeed, if
it works out as the sponsors of the law hope, it will make all incorporated banks together
joint owners of a cental dominating power". As G. Edward Griffin stated,
"that is about as good a definition of a cartel as one can find."
Creation of the Federal Reserve Act
The Federal Reserve Act of December 23, 1913, was the result of the efforts of three major bankers: J.P. Morgan, Paul Warburg, and John D. Rockefeller. These three bribed a large number of senators. By not telling any of the opposing senators of their plan, these senators met during Christmas vacation and passed the Federal Reserve Act. Such tactics are not very different to what has been happening today.
"We shall have World Government, whether or not we like it. The only question is whether World Government will be achieved by conquest of consent." - Paul Warburg in an address to the U.S. Senate on February 17, 1950.
The Federal Reserve was given this name so that people would think of it as a legitimate government agency. Actually it is formed of private bankers who are more interested in their own power, enrichment, and a world banking system than in the welfare of the economy of the United States. The only thing that keeps things from being worse is the fact that the economies of the world are tied together along with the wealth of those who are part of the Federal Reserve. Very likely, Fort Knox has already lost most of it gold by now, but no one knows because the Federal Reserve has not been properly audited. Even auditing by Congress at this point is not necessarily wise because Congressmen are so easily bribed or intimidated even if they are usually on our side.
The Constitution gives Congress the right to print money for the nation. The forming of the Federal Reserve is unconstitutional. The Federal Reserve now "prints" money, loans it to the government at interest, the Federal Government uses us to pay the interest and keeps the money most of the time as the nation debt. If Congress had been printing the money, there would be no interest for us to pay on the national debt. But this process continues largely because as someone said, "Those in the Federal Reserve can now easily buy the politicians who would gladly sell their souls." Actually, there is no printing of the money now because our banking system is based upon electronic book keeping, and "money" is "created" in the books when the banks or the feds make loans.
I am not a fan of Abraham Lincoln, but he did say:
"The government should create, issue, and circulate all the currency. Creating
and issuing money is the supreme prerogative of government and its greatest creative
opportunity.
"Adopting these principles will save the taxpayers immense sums of interest and money
will cease to be the master and become the servant of humans."
Looking at it from the other side, those in the Federal Reserve tell us what the interest rate is to be, collect the immense sums of interest, and cause us to be slaves.
The bankers who started the Federal Reserve knew that whoever issues the money for the nation would control the government - and whoever controls the U.S. government has a leg up in controlling the world. Henry Kissenger said, "Who controls money controls the world." Bear in mind that Kissinger was a member of the Council on Foreign Relations (CFR) which was started by Communists (progressives) and their useful idiots - those who started the CFR were young idealistic pseudo-intellectuals (real intellectuals do not think of themselves as such) who were stupid enough to think they knew better than anyone else how to run the world. Kissinger was correct except that he should have said "Who controls money controls or ruins the world."
"The new world order will be built on and end run on national sovereignty, eroding it piece by piece will accomplish much more than the old fashioned frontal assault." - from Council of Foreign Relations Journal - 1974.
If you have ever wondered what is wrong with the press today for not reporting the
unpleasant truths, the answer follows.
"We are grateful to the Washington Post, the New York Times,
Time Magazine, and other
great publications whose directors have attended our meetings and respected their promises
of discretion for almost 40 years.
It would have been impossible for us to develop our plans for the
world if we had been subjected to the lights of publicity during those years.
But now the world is more sophisticated and prepared to march towards
a world government.
The supra national sovereignty of an intellectual elite and
world bankers is surely preferable to the national auto-determination practiced in past
centuries."
David Rockefeller, Private Banker, Council of Foreign Relations,
June 1991.
And the attitude of the CFR on the military men who actually do keep the oath they took
to defend the Constitution:
"Military men are just dumb, stupid animals to be used as
pawns in foreign wars." - Henry Kissinger, Council of Foreign Relations.
The real rulers in Washington are invisible and exercise power from behind the scenes."
- Felix Franfurter, U.S. Supreme Court Justice.
The Federal Reserve System
The Federal Reserve System was authorized by the Federal Reserve Act of December 23, 1913, to establish Federal Reserve Banks, furnish "elastic" currency, afford a means of rediscounting commercial paper, establish more effective supervision of banking in the United States, and for "other purposes".
The System comprises the Board of Governors; the Federal Open Market Committee; 12 Federal Reserve Banks and their 24 branches situated in different sections of the United States; the Federal Advisory Committee; and the member banks, which include all national banks within the United States and such state banks and trust companies as to have voluntarily applied to the Board of Governors for membership and have been admitted to the System.
The Board of Governors is composed of seven members appointed by the President by and with the advice and consent of Senate. The term for each is 14 years. When appointing these members, the President is supposed to have due regard for financial, agricultural, industrial, and commercial interests in the geographical divisions of the country.
The board determines general monetary credit and operating policies for the system as a whole, and formulates the rules and regulations necessary to carry out the purposes of the Federal Reserve Act. The board's principal duties consist of exerting an influence over credit conditions and supervising the Federal Reserve Banks and member banks.
Each member of the Board of Governors is also a member of the Federal Open Market Committee. Five representatives from the Reserve banks, each elected annually by the members of the boards of those banks, are the also members of the committee.
Open market operations of the Reserve banks are conducted under regulations adopted by the committee with a view to accommodating commerce and business, and with regard to their bearing upon the general credit situation of the country. The Reserve banks are authorized to purchase and sell in the open market certain securities and bills of exchange and bankers' acceptances of the kinds and maturities eligible for discount by the Reserve banks.
The Federal Advisory Council acts in an advisory capacity, conferring with the
Board of Governors on general business conditions and making recommendations concerning
matters within the Board's jurisdiction. The council is composed of 12 members,
one from each Federal Reserve district being selected annually by the board of directors
of the Reserve bank of the district. The council is required to meet in Washington,
DC, at least four times each year, and more often if called by the Board of Governors.
The Naked Truth
The Federal Reserve is a private cartel - not a government organization. It has been given the right to counterfeit U.S. currency.
1. It prints counterfeited money (just paper - no gold or silver to back it up).
[Today it usually shows a "credit" for the government (digitized money) so that the money
is not even material - just a figure on a piece of paper or in a computer. However, it has the
effect of counterfeited money and will be shown as such in the following.]
2. It loans the counterfeited money (credit) to our government.
3. It charges interest on the counterfeited dollars it created.
4. It grows in wealth as a result from the interest on counterfeited money.
5. It thus causes the taxpayer to pay for its new wealth in two ways.
A. The taxpayer has to pay income tax to pay for the interest
that increases the wealth of the Federal Reserve.
(Income tax is part of the three-pronged attack: graduated
federal income tax, the Federal Reserve Act, and the work of the Council on
Foreign Relations).
B. The taxpayer's dollars inflate which raises his income tax
bracket and reduces his standard of living.
6. Federal spending helps the Federal Reserve to gain more on interest and increase
its power even more quickly.
John F. Kennedy was the only president to attempt to abolish the Federal Reserve. To begin the process, he issued Executive Order Number 11110 which returned to the Treasury Department the constitutional authority to "issue silver certificates against silver bullion, silver, and standard silver dollars in the Treasury." [Apparently, he was not sure that there was still any gold left.]
Three weeks after Kennedy issued the Executive Order Number 11110, he was dead.
The alleged purpose of the Federal Reserve is to stabilize our economy. Since it was formed, we have had the Great Depression, the recession of the 1980s, the crash of 1987, and the crisis we are in today. So what good is the Federal Reserve?
Bankers do not like inflation when they give loans at a certain interest rate. Inflation drives down their profits from the interest and lessens the value of the balance due on the loan itself. However, when variable-rate interest was created, it became possible to have even that loophole covered as they did all that they could to have the government increase spending.
There are times when the Federal Reserve appears to outsmart itself - not so. When excessive numbers of homes are repossessed, the banks are stuck with them and must take losses in upkeep and lower sale value. This hurts everyone and while they are hurting, the Fed lowers interest rates again. Excessive lending by the banks, regardless of the interest rate and regardless of pressure applied by ACORN or like groups, can lead to disaster. But this is deliberate cycle started by the Federal Reserve so that at one point it cannot fail to take down our economic system. Meanwhile, lower interest rates on loans accompanies lower interest rates on savings accounts and certificates of deposit - and this hurts older Americans who use the interest to either survive or maintain their standard of living - and the older Americans who are not sufficiently brainwashed are targeted for removal. When recovery appears possible, the Fed can again raise interest rates, cause more people to become homeless, and cause more smaller banks to fail - which allows the larger banks to have more control, leading to a time when there are only a few large banks controlled by a socialist government.
Power corrupts and absolute power is beyond corruption. Our system was created
by the founding fathers to achieve a balance that prevents absolute power from being
attained by any government entity or private organization, but this balance has been
upset time after time by the corruption of our politicians and our failure to adhere to
the Constitution. The creation of the Federal Reserve and its continued existence
is unconstitutional.
We are no longer a government by free opinion, no longer a government
by conviction and the vote of the majority, but a government by the
opinion and duress of a small group of dominant men.
Woodrow Wilson
Most of the foregoing was taken from a 1960 Americana Encyclopedia set and condensed to fit into something short enough to be read more easily. Some of it was taken from a DVD by Aaron Russo, America - Freedom to Fascism, Lies the Government Told You by Judge Andrew P. Napolitano, None Dare Call It Treason - 25 Years Later by John A. Stormer, and The Creature from Jekyll Island by G. Edward Griffin. The last book mentioned is the most complete account of the Federal Reserve (Fed) from its beginning, at a highly illegal and secret meeting on Jekyll Island in 1910, to the present. Cartels are both illegal and dangerous in a free-enterprise society. The Fed is both. There is now a 5th edition and a 23rd printing of The Creature from Jekyll Island. Everyone should be made aware of its contents.
As are many pieces of legislation promoted by Congress, the Federal Reserve Act looked like a great leap forward - which it was in most ways. However, hidden within it were the means to what could become a world society based upon feudalism.
Dr. Harold Quigley wrote a book with the title, TRAGEDY AND HOPE - A HISTORY OF THE WORLD IN OUR TIME which was first published in 1966. Quigley was proud of the fact that he was one of what is now sometimes referred to as the Shadow Party. As a rule, the members of that party do not want anyone to expose them - yet Quigley did so even though he was in favor of their agenda. Quigley believed that it was time for this group to tell the world about themselves because they had advanced to the point that others could not stop them - and others could have the choice of either going along with their agenda or of suffering the consequences. If others would go along with them and aid their agenda, these others would have hope - otherwise, they would suffer tragedy. Quigley's book is very long and detailed, so W. Cleon Skousen wrote an abbreviated version with his own comments - much like a book report. Skousen called his book The Naked Capitalist.
According to information found in The Naked Capitalist, copyrighted in 1970, the operation of the Federal Reserve System is one of the most interesting and mysterious combines in the country. Since it was founded in 1913, it has successfully resisted every attempt to conduct an audit of its affairs. The system consists of 12 "National Banks" but the only one of any significance is the one in New York. The New York bank has always been managed by someone completely congenial to the interests of international bankers. It is important to realize that the Federal Reserve System is not a bona fide Government agency. Technically, the stock is owned by the 12 National Banks which receive a dividend of six percent each year. Any profits from the System are supposed to be turned over to the U. S. Treasury. In fact, the President appoints seven members of the Federal Reserve Board for fourteen-year terms, but in spite of all this window dressing the Federal Reserve Board is completely independent in its decisions [and has defied several Presidents - which may be all right at times considering the expertise and/or quality of some of our Presidents].
The The Naked Capitalist is essentially the history and evolution of the "Shadow Party" which manipulated the adoption of the Federal Reserve System so that it would serve as a means to allow the most wealthy international bankers and those who were involved with them to covertly influence all governments and financial institutions - with the end in view of a world government in which they would be the dictators. The name "Shadow Party" is not mentioned as that is one given by David Horowitz and Richard Poe. However, the history is very precise and eventually leads to modern times in which Soros and his fellow billionaires are key players.
The book mentions that the Shadow Party billionaires do not trust democracies in any form because democracies prevent feudalism in a society in which the wealthy elite should be dictators. The Shadow Party billionaires believe themselves to be above the rest of humanity, that a democratic republic will always cater to those in the middle of the bell curve in intelligence, and therefore humanity should be under a dictatorial regime - preferably socialistic as such a regime, by its innate nature, is ruled from the top. Bear in mind that such a philosophy from these egocentric billionaires is logical because men who strive for such wealth and power are mentally unbalanced. Many do not consider them to be truly human as they are lacking empathy (the major problem with psychopaths).
The The Naked Capitalist also explains how and when the Democratic Party was taken over by the Shadow Party, and how both the Democrats and the Republicans have been influenced in such a way as to sink us farther into the quicksand of slavery. When one is in quicksand, he can attempt to pick up his left leg and the rest of his body will sink farther. Then he can attempt to pick up his right leg and the rest of his body will sink farther. Attempting to pick up the left leg is what we are doing when voting for the Democrats, and attempting to pick up the right leg what we are doing when voting for the Republicans. Either way we sink farther down. We no seldom have ways to elect those we want in office because candidates in both parties are usually bad for us - but each in a different way.
Before the Federal Reserve Act was legislated into existence, the majority of the politicians did not trust those who ran the banks - and they were probably correct in their lack of trust. The bankers made a great show of not wanting the Federal Reserve System - but this was a means to trick the politicians into moving in the preferred direction. Those legislators who finally created the system, probably believed in it and had no idea what it would become in the long run.
One point that is made in the The Naked Capitalist is how much these psychopathic Shadow Party members still fear exposure. The European royalty was the older equivalent of the Shadow Party. They were related to one another just as many in the Shadow Party have been and are related through either blood or marriage. The European royalty thought they would be in charge in their feudalistic societies until the end of time. Yet, they were overthrown.
Regardless of what Quigley said, the Shadow Party can be beaten.