THE FEDERAL RESERVE ACT
The end of the Civil War in 1865, ruined the Illuminati's chances to control our
monetary system, as they did in most European countries. So, the Rothschilds
modified their plan for financial takeover. Instead of tearing down from the
top, they were going to start at the bottom to disrupt the foundation of our
monetary system. The instrument of this destruction was a young immigrant by
the name of Jacob Schiff.
The Schiff family traced their lineage back
to the fourteenth century, and even claimed that King Solomon was an ancestor.
Jacob Schiff was born in 1847, in
Kuhn and Loeb were German Jews who had come
to the United States in the late 1840's, and pooled their resources during the
1850's to start a store in Lafayette, Indiana, to serve settlers who were on
their way to the West. They set up similar stores in Cincinnati and St. Louis.
Later, they added pawnbroking and money lending to their business pursuits. In
1867, they established themselves as a well-known banking firm.
In 1873, at the age of 26, Jacob Schiff,
with the financial backing of the Rothschilds, bought into the Kuhn and Loeb
partnership in New York City. He became a full partner in 1875. He became a
millionaire by financing railroads, developing a proficiency at railroad
management that enabled him to enter into a partnership with Edward Henry
Harriman to create the greatest single railroad fortune in the world. He
married Solomon Loeb's oldest daughter, Theresa, and
eventually bought out Kuhn's interest. For
all intents and purposes, he was the sole owner of what was now known as Kuhn,
Loeb and Company. Sen. Robert L. Owen of Oklahoma indicated that Kuhn, Loeb and
Company was a representative of the Rothschilds in the United States.
Although John Pierpont Morgan (1837-1913), the
top American Rothschild representative, was the head of the American financial
world, Schiff was rapidly becoming a major influence by distributing desirable
European stock and bond issues during the Industrial Revolution. Besides Edward
H. Harriman's railroad empire, he financed Standard Oil for John D. Rockefeller
(1839-1937), and Andrew Carnegie's (1835-1919) steel empire. By the turn of the
century, Schiff was firmly entrenched in the banking community, and ready to
fulfill his role as the point man in the Illuminati's plan to control our
economic system, weaken Christianity, create racial tension, and to recruit
members to get them elected to Congress and appointed to various government
agencies.
In 1636, Miles, John, and James Morgan
landed in Massachusetts, leaving their father, William, to carry on the family
business of harness-making in England. Joseph Morgan (J. P. Morgan's
grandfather), successful in real estate and business, supported the Bank of the
United States. Junius Spencer Morgan (J. P. Morgan's father), was a partner in
the Boston banking firm of J. M. Beebe, Morgan, and Co.; and became a partner
in London's George Peabody and Co., taking it over when Peabody died, becoming
J. S. Morgan and Co.
John Pierpont Morgan, or as he was better
known, J. P. Morgan, was born on April 17, 1837. He became his father's
representative in New York in 1860. In 1862, he had his own firm, known as J.
Pierpont Morgan and Co. In 1863, he liquidated, and became a partner with
Charles H. Dabney (who represented George Peabody and Co.), and established a
firm known as Dabney, Morgan and Co. He later teamed up with Anthony J. Drexel
(son of the founder of the most influential banking house in Philadelphia), in
a firm known as Drexel, Morgan and Co. Morgan also became a partner in Drexel
and Co. in Philadelphia. In 1869, Morgan and Drexel met with the Rothschilds in
London, and through the Northern Securities Corporation, began consolidating
the Rothschild's power and influence in the United States. Morgan continued the
partnership that began when his father acted as a joint agent for the
Rothschilds and the U. S. government.
During the Civil War, J. P. Morgan had sold
the Union Army defective carbine rifles, and it was this government money that
helped build his Guaranty Trust Co. of New York. In 1880, he began financing
and reorganizing the railroads. After his father died in 1890, and Drexel died
in 1893, the Temporary National Economic Committee revealed that J. P. Morgan
held only a 9.1% interest in his own firm. George Whitney owned 1.9%, and H. B.
Davison held 1.2%, however, the Charles W. Steele Estate held 36.6%, and Thomas
W. Lamont (whose son, Corliss Lament, was an active communist) had 34.2%.
Researchers believe that the Illuminati controlled the company through these
shares.
In 1901, Morgan bought out Andrew
Carnegie's vast steel operation for $500,000,000 to merge the largest steel
companies into one big company known as the United States Steel Corporation (in
which, for a time, the Rockefellers were major stockholders).
A speech by Senator Norris which was
printed in the Congressional Record of November 30, 1941, said: "J. P.
Morgan, with the assistance and cooperation of a few of the interlocking
corporations which reach all over the United States in their influence,
controls every railroad in the United States. They control practically every
public utility, they control literally thousands of corporations, they control
all of the large insurance companies. Mr. President, we are gradually reaching
a time, if we have not already reached that point, when the business of the
country is controlled by men who can be named on the fingers of one hand,
because those men control the money of the Nation, and that control is growing
at a rapid rate."
The House of Morgan grew larger in 1959,
when the Guaranty Trust Co. of New York merged with the J. P. Morgan and Co.,
to form the Morgan Guaranty Trust Co. They had four branch offices, and foreign
offices in London, Paris, Brussels, Frankfurt, Rome, and Tokyo. The firm of
Morgan, Stanley, and Co. was also under their control.
Paul Moritz Warburg (1868-1932), and his
brother Felix (1871-1937), came to the United States from Frankfurt in 1902,
buying into the partnership of Kuhn, Loeb and Co. with the financial backing of
the Rothschilds. They had been trained at the family banking house, M. M.
Warburg and Co. (run by their father Moritz M. Warburg, 1838-1910), a
Rothschild-allied bank in Frankfurt, Hamburg, and Amsterdam, which had been
founded in 1798 by their great-grandfather. Paul (said to be worth over $2.5
million when he died), married Nina Loeb, the daughter of Solomon Loeb (the
younger sister of Schiff's wife); while Felix, in March, 1895, married Frieda
Schiff, the daughter of Jacob Schiff.
Their brother Max (1867-1946), a major
financier of the Russian Revolution (who in his capacity as Chief of
Intelligence in Germany's Secret Service, helped Lenin cross Germany into
Russia in a sealed train) and later Hitler, ran the Hamburg bank until 1938, when
the Nazis took over. The Nazis, who didn't want the Jews running the banks,
changed its name to Brinckmann, Wirtz and Co. After World War II, a cousin,
Eric Warburg, returned to head it, and in 1970, its name was changed to M. M.
Warburg, Brinckmann, Wirtz and Co.
Siegmund Warburg, Eric's brother,
established the banking firm of S. G. Warburg and Co. in London, and by 1956,
had taken over the Seligman Brothers' Bank.
The Warburgs are another good example of how
the Illuminati controls both sides of a war. While Paul Warburg's firm of Kuhn,
Loeb and Co. (who had five representatives in the U. S. Treasury Department)
was in charge of Liberty Loans, which helped finance World War I for the United
States, his brother Max financed Germany, through M. M. Warburg and Co.
Paul and Felix Warburg were men with a
mission, sent here by the Rothschilds to lobby for the passing of a central
banking law in Congress. Colonel Ely Garrison (the financial advisor to
Presidents Theodore Roosevelt and Woodrow Wilson) wrote in his book Roosevelt,
Wilson and the Federal Reserve Act: "Mr. Paul Warburg is the man who got
the Federal Reserve Act together after the Aldrich Plan aroused such nationwide
resentment and opposition. The mastermind of both plans was Alfred Rothschild
of London." Professor E. R. A. Seligman, head of the Economics Department
of Columbia University, wrote in the preface of one of Warburg's essays on
central banking: "The Federal Reserve Act is the work of Mr. (Paul)
Warburg more than any other man in the country."
In 1903, Paul Warburg gave Schiff a memo
describing the application of the European central banking system to America's
monetary system. Schiff, in turn, gave it to James Stillman, President of the
National City Bank in New York City. Warburg had graduated from the University
of Hamburg in 1886, and studied English central banking methods, while working
in a London brokerage house. In 1891, he studied French banking methods; and
from 1892-93, traveled the world to study central banking applications. The
bottom line, was that he was the foremost authority in the world on central
banking. It is interesting to note, that the fifth plank in the 1848 Communist
Manifesto had to do with central banking.
In 1906, Frank A. Vanderlip, of the
National City Bank, convinced many of New York's banking establishment, that
they needed a banker-controlled central bank, that could serve the nation's
financial system. Up to that time, the House of Morgan had filled that role.
Some of the people involved with Morgan were: Walter Burns, Clinton Dawkins,
Edward Grenfell, Willard Straight, Thomas Lament, Dwight Morrow, Nelson
Perkins, Russell Leffingwell, Elihu Root, John W. Davis, John Foster Dulles, S.
Parker Gilbert, and Paul D. Cravath. The financial panics of 1873, 1884, 1893,
1907, and later 1920, were initiated by Morgan with the intent of pushing for a
much stronger banking system.
On January 6, 1907, the New York Times
published an article by Warburg, called "Defects and Needs of Our Banking
System," after which he became the leading exponent of monetary reform.
That same year, Jacob Schiff told the New York Chamber of Commerce, that
"unless we have a Central Bank with adequate control of credit resources,
this country is going to undergo the most severe and far reaching money panic
in history." When Morgan initiated the economic panic in 1907, by
circulating rumors that the Knickerbocker Bank and Trust Co. of America was
going broke, there was a run on the banks, creating a financial crisis, which
began to solidify support for a central banking system. During this panic,
Warburg wrote an essay called "A Plan for a Modified Central Bank"
which called for a Central Bank, in which 50% would be owned by the government,
and 50% by the nation's banks. In a speech at Columbia University, he quoted
Abraham Lincoln, who said in an 1860 Presidential campaign speech: "I
believe in a United States Bank."
In 1908, Schiff laid out the final plans to
seize the American monetary system. Colonel (an honorary title) Edward Mandell
House (1858-1938), the son of British financier Thomas W. House, a Rothschild
agent who made his fortune by supplying the south with supplies from France and
England during the Civil War, was Schiff's chief representative and courier;
and Bernard Baruch (1870-1965), whose stock market speculating made him a
multi-millionaire by the early 1900's, and whose foreign and domestic policy
expertise led Presidents from Wilson to Kennedy to seek his advice; were the two
who were relied on heavily by Schiff to carry out his plans. Herbert Lehman was
also a close aide to Schiff.
President Woodrow Wilson wrote about House
(published in The Intimate Papers of Col.House): "Mr. House is my second
personality. He is my independent self. His thoughts and mine are one. If I
were in his place, I would do just as he suggested...If anyone thinks he is
reflecting my opinion, by whatever action he takes, they are welcome to the
conclusion." George Sylvester Viereck wrote in The Strangest Friendship in
History: Woodrow Wilson and Colonel House: "When the Federal Reserve
legislation at last assumed definite shape, House was the intermediary between
the White House and the financiers." Schiff, who was known as the
"unseen guardian angel" of the Federal Reserve Act, said that the U.
S. Constitution was the product of 18th century minds, was outdated, and should
be "scrapped and rewritten."
In 1908, Sen. Nelson W. Aldrich
(father-in-law of John D. Rockefeller, Jr. and grandfather of Nelson and David
Rockefeller) proposed a bill, in which banks, in an emergency situation, would
issue currency backed by federal, state, and local government bonds, and
railroad bonds, which would be equal to 75% of the cash value of the bonds. It
was harshly criticized because it didn't provide a monetary system that would
respond to the seasonal demand, and fluctuate with the volume of trade. Aldrich
was the most powerful man in Congress, and the Illuminati's head man in the
Senate. A member of Congress for 40 years, 36 of them in the Senate, he was
Chairman of the powerful Senate Finance Committee.
In the House of Representatives, Rep. E. B.
Vreeland of New York, proposed the Vreeland Bill. After making some compromises
with Aldrich, and Speaker of the House Joseph Cannon, at a meeting in a hotel
room at the Arlington House, his bill became known as the Vreeland Substitute.
It called for the acceptance of asset currency, but only in cases of emergency,
and the currency would be based on commercial paper rather than bonds. It
passed in the House, 184 -145; but when it got to the Senate, Aldrich moved
against it, and pushed for further compromises. The Aldrich-Vreeland Bill,
called the Emergency Currency Act, was passed on May 30, 1908, and led to the
creation of the National Monetary Commission, which was made up of members of
Congress. Now, any monetary legislation sent to Congress, would have to go
through this group first.
The Bill approved by the National Monetary
Commission was known as the Aldrich Bill, and formed the legislative base for
the Federal Reserve Act. It was introduced as an amendment to the Republican
sponsored Payne-Aldrich Tariff Bill, in order to have Republican support. It
was based on Warburg's plan, except it would only have 15 districts; half of
the directors on the district level would be chosen by the banks, a third by
the stockholders, and a sixth by the other directors. On the National Board:
two chosen by each district; nine chosen by the stockholders; and seven
ex-officio members to be the Governor, Chairman of the Board, two Deputy
Governors, Secretary of the Treasury, Secretary of Commerce and Labor,
Secretary of Agriculture, and Comptroller of the Currency. Most people were
against the Bill, because it finally identified the banking institution as a
central bank, and the Democratic Party opposed it in the 1912 Party platform.
Aldrich was appointed as head of the
National Monetary Commission, and from 1908 -10, at a cost of $300,000, this
16-man committee traveled around Europe to study the central banking system.
In 1910, Warburg gave a speech entitled,
"A United Reserve Bank of the United States," which called for a
United Reserve Bank to be located in Washington, D.C., having the capital of
$100 million. The country would be divided into 20 districts, and the system
would be controlled by a Board of Directors, which would be chosen by the
banking associations, the stockholders, and the government. Warburg said that
the U. S. monetary system wasn't flexible, and it was unable to compensate for
the rise and fall of business demand. As an example, he said, that when wheat
was harvested, and merchants didn't have the cash on hand to buy and store a
large supply of grain, the farmers would sell the grain for whatever they could
get. This would cause the price of wheat to greatly fluctuate, forcing the
farmer to take a loss. Warburg called for the development of commercial paper
(paper money) to circulate as currency, which would be issued in standard
denominations of uniform sizes. They would be declared by law to be legal
tender for the payment of debts and taxes.
President Theodore Roosevelt said,
concerning the criticism of finding capable men to head the formation of a
central bank: "Why not give Mr. (Paul) Warburg the job? He would be the
financial boss, and I would be the political boss, and we could run the country
together."
After a conference was held at Columbia
University on November 12, 1910, the National Monetary Commission published
their plan in the December, 1910 issue of their Journal of Political Economy in
an article called "Bank Notes and Lending Power."
On November 22, 1910, Aldrich called a
meeting of the banking establishment and members of the National Monetary
Commission, which was proposed by Henry P. Davison (a partner of J. P. Morgan).
Aldrich said that he intended to keep them isolated until they had developed a
"scientific currency for the United States."
All those summoned to the secret meeting,
were members of the Illuminati. They met on a railroad platform in Hoboken, New
Jersey, where they chartered a private railroad car owned by Aldrich to
Georgia. They were taken by boat, to Jekyll Island, off the coast of Brunswick,
Georgia. Jekyll Island is in a group of ten islands, including St. Simons,
Tybee, Cumberland, Wassau, Wolf, Blackbeard, Sapelo, Ossabow, and Sea Islands.
Jekyll Island was a "hideaway resort of the rich," purchased in 1888
by J. P. Morgan, Cyrus McCormick, William Rockefeller (John D. Rockefeller's
brother), William K. Vanderbilt, and George F. Baker (who founded Harvard
Business School with a gift of $5 million) for $125,000 from Eugene du Bignon,
whose family owned it for a century. Up until the time it was converted into a
public resort, no uninvited foot ever stepped on its shores. It was said, that
when all 100 members of the Jekyll Island Hunting Club sat down for dinner at
the clubhouse, it represented a sixth of the world's wealth. St. Simons Island,
a short distance away, to the north, was also owned by Illuminati interests.
Those attending the meeting at the private
hunting lodge, were said to be on a duck-hunting expedition. They were sworn to
secrecy, even addressing each other by code names or just by their first names.
Details are very sketchy, concerning who attended the meeting, but most
scenarios agree that the following people were present: Sen. Aldrich, Frank A.
Vanderlip (Vice-President of the Rockefeller owned National City Bank), Henry
P. Davison (of the J. P. Morgan and Co.), Abram Piatt Andrew (Assistant
Secretary of the Treasury, an Assistant Professor at Harvard, and Special
Assistant to the National Monetary Commission during their European tour), Paul
Moritz Warburg (of Kuhn, Loeb and Co.), Benjamin Strong (Vice- President of
Morgan's Bankers Trust Co.), Eugene Meyer (a former partner of Bernard Baruch,
and the son of a partner in the Rothschild-owned Lazard Freres, who was the
head of the War Finances Corporation, and later gained control of the
Washington Post), J. P. Morgan, John D. Rockefeller, Col. House, Jacob Schiff,
Herbert Lehman (of Lehman Brothers), Bernard Baruch (appointed by President
Wilson to be the Chairman of the War Industries Board, which gave him control
of all domestic contacts for Allied war materials, which enabled him to make $200
million for himself while working for the government), Joseph Seligman (a
leading Jewish financier, who founded J. & W. Seligman and Co., who had
helped to float bonds during the Civil War, and were known as "World
Bankers", then later declined President Grant's offer to serve as the
Secretary of Treasury), and Charles D. Norton (President of the First Natonal
Bank of New York).
About ten days later, they emerged with the
groundwork for a central banking system, in the form of, not one, but two
versions, to confuse the opposition. The final draft was written by Frank
Vanderlip, from Warburg's notes, and was incorporated into Aldrich's Bill, in
the form of a completed Monetary Commission report, which Aldrich railroaded
through Congress by avoiding the term "central bank." No information
was available on this meeting until 1933, when the book The Federal Reserve
Act: It's Origins and Problems, by James L. Laughlin, appeared; and other
information, which was supplied by B. C. Forbes, the editor of Forbes Magazine.
In 1935, Frank Vanderlip wrote in the Saturday Evening Post: "I do not
feel it is any exaggeration to speak of our secret expedition to Jekyll Island
as the occasion of the actual conception of what eventually became the Federal
Reserve System."
The banker-initiated mini-depressions, the
last of which had occurred in 1907, helped get Congressional support for the
Bill, and on May 11, 1911, the National Citizens League for the Promotion of a
Sound Banking System, an Illuminati front-organization, publicly announced
their support for Aldrich's Bill. However, the Aldrich Bill was destined for
failure, because he was so closely identified with J. P. Morgan. So, the
Illuminati went to Plan B, which was the second version hammered out at the
Jekyll Island summit. The National Citizens League publicly withdrew their
support of the Aldrich Bill, and the move was on to disguise it, so that it
could get through Congress.
Once the new version was ready, they were a
little apprehensive about introducing it in Congress, because even if it would
be passed by Congress, President Taft would veto it, so they had to wait until
they could get their own man elected. That man was Woodrow Wilson.
The Democrats, with the exception of Grover
Cleveland's election, had been out of power since 1869. Being a
"hungry" Party, the Illuminati found them easier to infiltrate.
During the late 1800's, they began the process of changing the Democrats from
conservative to liberal, and the Republicans, from liberal to conservative.
Wilson graduated from Princeton University
in 1879, studied law at the University of Virginia, and received his doctorate
degree from Johns Hopkins in 1886. He taught Political Science and History at
Bryn Mawr and Wesleyan, and in 1902, became President of Princeton. Because of
his support of Aldrich's Bill, when it was first announced, he was supported by
the Illuminati in his successful bid as Governor of New Jersey in 1910. The
deal was made through Vanderlip agents, William Rockefeller and James Stillman,
at Vanderlip's West Chester estate. The liaison between the Illuminati and
Wilson, would be his prospective son-in-law, William G. McAdoo.
Rabbi Stephen Wise, a leading Jewish
activist, told an audience at the Y.M.C.A. in Trenton, New Jersey: "On
Tuesday the President of Princeton University will be elected Governor of your
state. He will not complete his term of office as Governor. In November, 1912,
he will be elected President of the United States. In March, 1917, he will be
inaugurated for the second time as President. He will be one of the greatest
Presidents in American history." Wise, who made this prophetic statement
in 1910, later became a close advisor to Wilson. He had good reason to believe
what he said, because the deal had already been struck. Wilson wasn't viewed as
being pro-banking, and the Democratic Party Platform opposed a Central Bank,
which was now linked to the Republicans and the bankers.
The main problem of the Democrats was the
Republican voting edge and the lack of money. After the Illuminati made the
decision to support Wilson, money was no problem. Records showed that the
biggest contributors to Wilson's campaign were Jacob Schiff, Bernard Baruch,
Henry Morgenthau, Sr., Thomas Fortune Ryan (mining magnate), Sammuel Untermyer,
Cleveland H. Dodge (of the National City Bank), Col. George B. M. Harvey (an
associate of J. P. Morgan, and editor of the Morgan-controlled Harper's Weekly,
and President of the Harper and Brothers publishing firm), William Laffan
(editor of the New York Sun), Adolph Ochs (publisher of the New York Times),
and the financiers that owned the New York Times, Charles R. Flint, Gen. Sam
Thomas, J. P. Morgan, and August Belmont. All of these men were Illuminati
members.
The problem of the voter registration edge
was a bit more difficult, but that was a project that the Illuminati was
working on. The Russian pogroms of 1881 and 1882, in which thousands of
Russians were killed; and religious persecution and anti-semitism in Poland,
Romania, and Bulgaria in the early 1890's, began three decades of immigration
into the United States by thousands of Jews. By the turn of the century, a
half-million Jews had arrived to the port cities of New York, Baltimore, and
Boston. It was the Democrats who initiated a program to get them registered to
vote. Humanitarian committees were set up by Schiff and the Rothschilds, such
as the Hebrew Immigration Aid Society, and the B'nai B'rith, so when the Jews
arrived, they were made naturalized citizens, registered Democrat, then
shuffled off to other large cities, such as Chicago, Philadelphia, Detroit and
Los Angeles, where they were given financial help to find a place to live,
food, and clothing. This is how the Jews became a solid Democratic voting bloc,
and it was these votes that would be needed to elect Wilson to the Presidency.
In 1912, with President William Howard Taft
running for re-election against Wilson, the Illuminati needed some insurance.
They got it by urging another Republican, former President, Theodore Roosevelt
(1901-09) to run on the Progressive ticket. Taft had served as Roosevelt's
Secretary of War (1905-09), and was chosen by Roosevelt to succeed him as
President. Now, Roosevelt was running again. Advocating the 'New Nationalism,'
Roosevelt said: "My hat is in the ring...the fight is on and I am stripped
to the buff." Identified as 'anti-business' because of his stand against
corporations and trusts, his proposals for reorganizing the government were
attacked by the Illuminati-controlled New York Times as "super-
socialism." His 'Bull Moose' Platform said: "We are opposed to the
so-called Aldrich Currency Bill because its provisions would place our currency
and credit system in private hands, not subject to effective public
control." Frank Munsey and George Perkins, of the J. P. Morgan and Co.
organized, ran, and financed Roosevelt's campaign. A recent example of the same
plan that pulled votes away from Taft, in order to get Wilson elected, occurred
in the 1992 Presidential election. In a 1994 interview, Barbara Bush told
ABC-TV news correspondent Barbara Walters, that the third-party candidacy of
independent H. Ross Perot was the reason that Bill Clinton was able to defeat
President George Bush.
The Illuminati was able to get the support
of perennial Democratic Presidential candidate, William Jennings Bryan, by
letting him write the plank of the Party Platform which opposed the Aldrich
Bill. Remember, the second version of the Bill prepared at Jekyll Island was to
be an alternative, so public attention was turned against the Aldrich Bill.
Wilson, an aristocrat, having socialistic views, was in favor of an independent
reserve system, because he didn't trust the "common men" which made
up Congress, however, publicly, he promised to "free the poor people of
America from control by the rich," and to have a money system that
wouldn't be under the control of Wall Street's International Bankers. In fact,
in the summer of 1912, when he accepted the nomination as the Democratic candidate
for the Presidency, he said: "A concentration of the control of
credit...may at any time become infinitely dangerous to free enterprise."
According to the Federal Reserve's historical narrative, the shift in Wilson's
point of view was "a combination of political realities and his own lack
of knowledge about banking and finance (and) after his election to the
Presidency, Wilson relied on others for more expert advice on the currency
question."
Because of the voting split in the
Republican Party, not only was Woodrow Wilson able to win the Presidency, but
the Democrats gained control of both houses in Congress.
DEMOCRAT (Wilson) 435 electoral votes
6,286,214 popular votes
PROGRESSIVE (Roosevelt) 88 electoral votes
4,126,020 popular votes
REPUBLICAN (Taft) 8 electoral votes
3,483,922 popular votes
Rep. Carter Glass of Virginia, Chairman of
the Banking and Currency Committee, met with Wilson after his election, along
with H. Parker Willis (who was Dean of Political Science at George Washington
University) of the National Citizens League, to prepare a Bill, known as the
Glass Bill, which began taking form in January, 1913. Now Plan B was set into
motion. Remember, the National Citizens League, headquartered in Chicago, had
already announced their opposition to the Aldrich Bill, now the Wall Street
banking interests had come out against the Glass Bill, which was actually the
Aldrich Bill in disguise.
The Wall Street crowd was generally
referred to as the "money trust." However, a 1912 Wall Street Journal
editorial said that the term "money trust" was just a reference to J.
P. Morgan. The suspicion of the "money trust" peaked in 1912, during
an investigation by a House banking subcommittee which revealed that twelve
banks in New York, Boston, and Chicago, had 746 interlocking directorships in
134 corporations. Rep. Robert L. Henry of Texas said that for the past five
years, the nation's financial resources had been "concentrated in the city
of New York (where they) now dominate more than 75 percent of the moneyed
interests of America..." George McC. Reynolds, the President of the
Continental Bank of Chicago, testified: "The money power now lies in the
hands of a dozen men..." The threat from this powerful private banking
system was to be ended with the establishment of a central bank.
To avoid the mention of central banking,
Wilson himself suggested that the regional banks be called "Federal
Reserve Banks," and proposed a special session of the 63rd Congress to be
convened to vote on the Federal Reserve Act. On June 23, 1913, he addressed the
Congress on the subject of the Federal Reserve, threatening to keep them in
session until they passed it. Wilson got Bryan's support by making him
Secretary of State, and in October, 1913, Bryan said he would assist the
President in "securing the passage of the Bill at the earliest possible
moment."
The Glass Bill (HR7837) was introduced in
the House of Representatives on June 26, 1913. The revision mentioned nothing
about central banking, which was what the people feared. It was believed that
Willis had written the Bill, but it was later discovered that Professor James
L. Laughlin, at the Political Science Department of Columbia University, had
written it, taking special precaution not to clash with the Bryan plank of the
Democratic Party Platform. It was referred to the Banking and Currency
Committee, reported back to the House on September 9th, and passed on September
18th.
Sen. Robert Latham Owen of Oklahoma,
Chairman of the Senate Banking and Finance Committee, along with five of his
colleagues, drafted a Bill which was more open-minded to the suggestions of the
bankers. A Bill drafted by Sen. Gilbert M. Hitchcock, a Democrat from Nebraska,
called for the elimination of the "lawful money" provision, and
stipulated that note redemption must be made in gold. It also provided for
public ownership of the regional reserve banks, which would be controlled by
the government.
In the Senate, the Glass Bill was referred
to the Senate Banking Committee, and reported back to the Senate on November
22, 1913. The Bill was now known as the Glass-Owen Bill. Sen. Owen, who opposed
the Aldrich Bill, made some additional revisions, in an attempt to keep them
from completely dominating our monetary system. Sen. Elihu Root of New York
criticized some of these revisions, and some points were modified. It was
passed by the Senate on December 19th.
Since different versions had been passed by
both Houses, a Conference Committee was established, which was stacked with six
Democrats and only two Republicans, to insure that certain portions of the
original Bill would remain intact. It was hastily prepared without any public
hearings, and on December 23, 1913, two days before Christmas, when many
Congressmen, and three particular Senators, were away from Washington; the Bill
was sent to the House of Representatives, where it passed 298-60, and then sent
to the Senate, where it passed with a vote of 43-25 (with 27 absent or
abstaining). An hour after the Senate vote, Wilson signed the Federal Reserve
Act into law, and the Illuminati had taken control of the American economy. The
gold and silver in the nation's vaults were now owned by the Federal Reserve.
Baron Alfred Charles Rothschild (1842-1918), who masterminded the entire scheme,
then made plans to further weaken our country's financial structure.
Although Wilson, and Rep. Carter Glass were
given the credit for getting the Federal Reserve Act through Congress, William Jennings
Bryan played a major role in gaining support to pass it. Bryan later wrote:
"That is the one thing in my public career that I regret- my work to
secure the enactment of the Federal Reserve Law." Rep. Glass would later
write: "I had never thought the Federal Bank System would prove such a
failure. The country is in a state of irretrievable bankruptcy."
Eustace Mullins, in his book The Federal
Reserve Conspiracy, wrote: "The money and credit resources of the United
States were now in complete control of the banker's alliance between J. P.
Morgan's First National Bank, and Kuhn & Loeb's National City Bank, whose
principal loyalties were to the international banking interests, then quartered
in London, and which moved to New York during the First World War."
The Reserve Bank Organization Committee,
controlled by Secretary of the Treasury, William Gibbs McAdoo, and Secretary of
Agriculture David F. Houston (who along with Glass, later became Treasury
Secretaries under Wilson), was given $100,000 to find locations for the
regional Reserve Banks. With over 200 cities requesting this status, hearings
were held in 18 cities, as they traveled the country in a special railroad car.
On October 25, 1914, the formal
establishment of the Federal Reserve System was announced, and it began
operating in 1915.
Col. House, who Wilson called his
"alter ego," because he was his closest friend and most trusted
advisor, anonymously wrote a novel in 1912 called Philip Dru: Administrator,
which revealed the manner in which Wilson was controlled. House, who lobbied
for the implementation of central banking, would now turn his attention towards
a graduated income tax. Incidentally, a central bank providing inflatable
currency, and a graduated income tax, were two of the ten points in the
Communist Manifesto for socializing a country.
House hand-picked the first Federal Reserve
Board, naming Benjamin Strong as its Chairman. In 1914, Paul M. Warburg quit
his $500,000 a year job at Kuhn, Loeb and Co. to be on the Board, later
resigning in 1918, during World War I, because of his German connections.
The Banking Act of 1935 amended the Federal
Reserve Act, changing its name to the Federal Reserve System, and reorganizing
it, in respect to the number of directors and length of term.
Headed by a seven member Board of
Governors, appointed by the President, and confirmed by the Senate for a 14
year term, the Board acts as an overseer to the nation's money supply and
banking system,
The Board of Governors, the President of
the Federal Reserve Bank in New York, and four other Reserve Bank Presidents,
who serve on a rotating basis, make up the Federal Open Market Committee. This
group decides whether or not to buy and sell government securities on the open
market. The Government buys and sells government securities, mostly through 21
Wall Street bond dealers, to create reserves to make the money needed to run
the government. The Committee also determines the supply of money available to
the nation's banks and consumers.
There are twelve Federal Reserve Banks, in
twelve districts: Boston (MA), Cleveland (OH), New York (NY), Philadelphia
(PA), Richmond (VA), Atlanta (GA), Chicago (IL) , St. Louis (MO), Minneapolis
(MN), Kansas City (KS), San Francisco (CA), and Dallas (TX). The twelve regional
banks were set up so that the people wouldn't think that the Federal Reserve
was controlled from New York. Each of the Banks have nine men on the Board of
Directors; six are elected by member Banks, and three are appointed by the
Board of Governors.
They have 25 branch Banks, and many member
Banks. All Federal Banks are members, and four out of every ten commercial
banks are members. In whole, the Federal Reserve System controls about 70% of
the country's bank deposits. Ohio Senator, Warren G. Harding, who was elected
to the Presidency in 1920, said in a 1921 Congressional inquiry, that the
Reserve was a private banking monopoly. He said: "The Federal Reserve Bank
is an institution owned by the stockholding member banks. The Government has not
a dollar's worth of stock in it." His term was cut short in 1923, when he
mysteriously died, leading to rumors that he was poisoned. This claim was never
substantiated, because his wife would not allow an autopsy.
Three years after the initiation of the Federal
Reserve, Woodrow Wilson said: The growth of the nation...and all our activities
are in the hands of a few men... We have come to be one of the worst ruled; one
of the most completely controlled and dominated governments in the civilized
world...no longer a government of free opinion, no longer a government by
conviction and the free vote of the majority, but a government by the opinion
and duress of a small group of dominant men."
In 1919, John Maynard Keynes, later an
advisor to Franklin D. Roosevelt, wrote in his book The Economic Consequences
of Peace: "Lenin is to have declared that the best way to destroy the
capitalist system was to debauch the currency...By a continuing process of
inflation, governments can confiscate secretly and unobserved, an important
part of the wealth of their citizens...As the inflation proceeds and the real
value of the currency fluctuates wildly from month to month, all permanent
relations between debtors and creditors, which form the ultimate foundation of
capitalism, become so utterly disordered as to be almost meaningless..."
Congressman Charles August Lindbergh, Sr.,
father of the historic aviator, said on the floor of the Congress: "This
Act establishes the most gigantic trust on Earth...When the President signs
this Act, the invisible government by the Money Power, proven to exist by the
Money Trust investigation , will be legalized...This is the Aldrich Bill in
disguise...The new law will create inflation whenever the Trusts want
inflation...From now on, depressions will be scientifically created...The worst
legislative crime of the ages is perpetrated by this banking and currency
bill." Lindbergh supposedly paid for his opposition to the Illuminati.
When there appeared to be growing support for his son Charles to run for the
Presidency, his grandson was kidnapped, and apparently killed.
Rep. Henry Cabot Lodge, Sr. said of the
Bill (Congressional Record, June 10, 1932): "The Bill as it stands, seems
to me to open the way to vast expansion of the currency...I do not like to
think that any law can be passed which will make it possible to submerge the
gold standard in a flood of irredeemable paper currency."
On December 15, 1931, Rep. Louis T.
McFadden, who for more than ten years served as Chairman of the Banking and
Currency Committee in the House of Representatives, said: "The Federal
Reserve Board and banks are the duly appointed agents of the foreign central
banks of issue and they are more concerned with their foreign customers than
they are with the people of the United States. The only thing that is American
about the Federal Reserve Board and banks is the money they use..." On
June 10, 1932, McFadden, said in an address to the Congress: "We have in
this country one of the most corrupt institutions the world has ever known. I
refer to the Federal Reserve Board and the Federal Reserve Banks...Some people
think the Federal Reserve Banks are United States Government institutions. They
are not Government institutions. They are private credit monopolies which prey
upon the people of the United States for the benefit of themselves and their
foreign customers...The Federal Reserve Banks are the agents of the foreign
central banks...In that dark crew of financial pirates, there are those who
would cut a man's throat to get a dollar out of his pocket...Every effort has
been made by the Federal Reserve Board to conceal its powers, but the truth is
the FED has usurped the government. It controls everything here (in Congress)
and controls all our foreign relations. It makes and breaks governments at
will...When the FED was passed, the people of the United States did not
perceive that a world system was being set up here...A super-state controlled
by international bankers, and international industrialists acting together to
enslave the world for their own pleasure!"
On May 23, 1933, McFadden brought
impeachment charges against the members of the Federal Reserve:
"Whereas I charge them jointly and
severally with having brought about a repudiation of the national currency of
the United States in order that the gold value of said currency might be given
to private interests..."
"I charge them...with having
arbitrarily and unlawfully taken over $80,000,000,000 from the United States
Government in the year 1928..."
"I charge them...with having
arbitrarily and unlawfully raised and lowered the rates on money...increased
and diminished the volume of currency in circulation for the benefit of private
interests..."
"I charge them...with having brought
about the decline of prices on the New York Stock Exchange..."
"I charge them...with having conspired
to transfer to foreigners and international money lenders, title to and control
of the financial resources of the United States..."
"I charge them...with having published
false and misleading propaganda intended to deceive the American people and to
cause the United States to lose its independence..."
"I charge them...with the crime of
having treasonably conspired and acted against the peace and security of the
United States, and with having treasonably conspired to destroy the
constitutional government of the United States."
In 1933, Vice-President John Garner, when
referring to the international bankers, said: "You see, gentlemen, who
owns the United States."
Sen. Barry Goldwater wrote in his book With
No Apologies: "Does it not seem strange to you that these men just
happened to be CFR and just happened to be on the Board of Governors of the
Federal Reserve, that absolutely controls the money and interest rates of this
great country. A privately owned organization ...which has absolutely nothing
to do with the United States of America!"
Plain and simple, the Federal Reserve is
not part of the Federal Government, it is a privately held corporation owned by
stockholders. That is why the Federal Reserve Bank of New York (and all the
others) is listed in the Dun and Bradstreet Reference Book of American Business
(Northeast, Region 1, Manhattan/Bronx). According to Article I, Section 8 of
the U. S. Constitution, only Congress has the right to issue money and regulate
its value, so it is illegal for private interests to do so. Yet, it happened,
and because of a provision in the Act, the Class A stockholders were to be kept
a secret, and not to be revealed. R. F. McMaster, who published a newsletter
called The Reaper, through his Swiss and Saudi Arabian contacts, was able to
find out which banks held a controlling interest in the Reserve: the Rothschild
Banks of London and Berlin; Lazard Brothers Bank of Paris; Israel Moses Seif
Bank of Italy; Warburg Bank of Hamburg and Amsterdam; Lehman Brothers Bank of
New York; Kuhn, Loeb, and Co. of New York; Chase Manhattan Bank of New York;
and Goldman, Sachs of New York. These interests control the Reserve through
about 300 stockholders.
Because of the way the Reserve was
organized, whoever controls the Federal Reserve Bank of New York, controls the
system, About 90 of the 100 largest banks are in this district. Of the
reportedly 203,053 shares of the New York bank: Rockefeller's National City
Bank had 30,000 shares; Morgan's First National Bank had 15,000 shares; Chase
National, 6,000 shares; and the National Bank of Commerce (Morgan Guaranty
Trust), 21,000 shares.
A June 15, 1978 Senate Report called
"Interlocking Directorates Among the Major U.S. Corporations"
revealed that five New York banks had 470 interlocking directorates with 130
major U.S. corporations: Citicorp (97), J. P. Morgan Co. (99), Chase Manhattan
(89), Manufacturers Hanover (89), and Chemical Bank (96). According to Eustace
Mullins, these banks are major stock holders in the FED. In his book World
Order, he said that these five banks are "controlled from London."
Mullins said: "Besides its controlling interest in the Federal Reserve
Bank of New York, the Rothschilds had developed important financial interests
in other parts of the United States...The entire Rockefeller empire was
financed by the Rothschilds."
A May, 1976 report of the House Banking and
Currency Committee indicated: "The Rothschild banks are affiliated with
Manufacturers Hanover of London in which they hold 20 percent...and
Manufacturers Hanover Trust of New York." The Report also revealed that
Rothschild Intercontinental Bank, Ltd., which consisted of Rothschild banks in
London, France, Belgium, New York, and Amsterdam, had three American
subsidiaries: National City Bank of Cleveland, First City National Bank of
Houston, and Seattle First National Bank. It is believed, that the Rothschilds
hold 53% of the stock of the U.S. Federal Reserve.
Each year, billions of dollars are
"earned" by Class A stockholders, from U. S. tax dollars which go to
the FED to pay interest on bank loans.
How about our Gold reserves. First, lets
take a brief look at the history of the two metals used for currency. The
Coinage Act of 1792 established a dollar consisting of 371.25 grains of pure
silver, but was later replaced with a gold dollar consisting of 25.8 grains of
gold. In 1873, the Coinage Act was passed, prohibiting the use of Silver as a
form of currency, because the quantity being discovered was driving the value
down. In 1875, after temporarily suspending gold convertibility during the
Civil War greenback period, the U. S. was put more firmly on the gold standard
by the Gold Standard Act of 1900. From 1900 to 1933, gold was coined by the U.
S. Mint, and our paper currency was tied into the amount of gold held in the U.
S. Treasury reserves.
In July, 1927, the directors of the Bank of
England, the New York Federal Reserve Bank, and the German Reichsbank, met to
plan a way to get the gold moved out of the United States, and it was this
movement of gold which helped trigger the depression. By 1928, nearly $500
million in gold was transferred to Europe.
President Franklin D. Roosevelt accepted
the advice of England's leading economist, John Maynard Keynes (1883-1946), a
member of the Illuminati, who said that deficit spending would be a shot in the
arm to the economy. Most of the New Deal spending programs to fight economic
depression, were based on Keynes theories on deficit spending, and financed by
borrowing against future taxes. In 1910, Lenin said: "The surest way to
overthrow an established social order is to debauch its currency." Nine
years later, Keynes wrote: "Lenin was certainly right, there is no more
positive, or subtler, no surer means of overturning the existing basis of
society than to debauch the currency...The process engages all of the hidden
forces of economic law on the side of destruction, and does it in a manner that
not one man in a million is able to diagnose."
A Presidential Executive Order by Roosevelt
on April 5, 1933, required all the people to exchange their gold coins, gold
bullion, and gold-backed currency, for money that was not redeemable in
precious metals. The Gold Reserve Act of 1934, known as the Thomas Amendment,
which amended the Act of May 12, 1933, made it illegal to possess any gold
currency (which was rescinded December 31, 1974). Gold coinage was withdrawn
from circulation, and kept in the form of bullion. Just as the public was to
return all their gold to the U. S. Government, so was the Federal Reserve.
However, while the people received $20.67 an ounce in paper money issued by the
Federal Reserve, the Reserve was paid in Gold Certificates. Now the Federal
Reserve, and the Illuminati, had control of all the gold in the country.
In 1934, the value of gold increased to $35
an ounce, which produced a $3 billion profit for the Government. But when the
price of gold increases, the value of the dollar decreases. Our dollar has not
been worth 100 cents since 1933, when we were taken off of the Gold Standard.
In 1974, our dollar was worth 221/2 cents, and in 1983 it was only worth 38
cents. Since our money supply had been limited to the amount of gold in
Treasury reserves, when the value of the dollar decreased, more money was
printed.
The first United Nations Monetary and
Financial Conference, held in Bretton Woods, New Hampshire, from July 1 to July
22, 1944, which was under the direction of Harry Dexter White (CFR member, and
undercover Russian spy), established the policies of the International Monetary
Fund. Its goals were to strip the United States of its gold reserves by giving
it to other nations; and to merge with their industrial capabilities; and their
economic, social, educational and religious policies; to facilitate a one-world
government.
Because of paying off foreign obligations
and strengthening foreign economies, between 1958 and 1968, the amount of gold
bullion in the possession of the U. S. Treasury dropped by 52%. Of the amount
remaining, $12 billion was reserved by law for backing the paper money in
circulation. Our money had been backed by a 25% gold reserve in accordance to a
law that was passed in 1945, but it was rescinded in 1968. The amount of gold
slipped from 653.1 million troy ounces in 1957, to 311.2 million ounces in
1968, which according to the Treasury Department, was due to sales to foreign
banking institutions, sales to domestic producers, and the buying and selling
of gold on the world market to stabilize prices. This was a loss of 341.9
million troy ounces. In August, 1971, gold was used only for world trade,
because foreign countries wouldn't accept U. S. dollars. As of November, 1981,
sources had indicated that the gold reserve had dropped to 264.1 million troy
ounces.
Title 31 of the U. S. Code, requires an
annual physical inventory of our gold supply, but a complete audit was never
done, so officially, nobody knows what has occurred. After World War II,
America had 70% of the World's supply of loose gold, but today, we may have
less than 7%. Sen. Jesse Helms seemed to think that the OPEC nations have our
gold, while others believe that 70% of the world's gold supply is being held by
the World Bank, which is dominated by the financial grip of the Rothschilds and
the Rockefellers. It was discovered from a gentleman in Michigan, whose
research indicated that counterfeit $5,000 and $10,000 Federal Reserve Notes
had been used to steal U.S. gold reserves. Illegal to own, these notes are actually
checks which are used to transfer ownership of large amounts of gold without
actually moving the gold itself. Using public records, he found the serial
numbers of the bills which were originally printed, and how there are now more
in existence.
It has been reported that 40% (13,000 tons)
of the world's gold is five levels below street level, in a sub-basement of the
New York Federal Reserve Bank, behind a 90-ton revolving door. Some of it is
American-owned, but most is owned by the central banks of other countries. It
is stored in separate cubicles, and from time to time, is moved from one
cubicle to another to satisfy international transactions.
Now lets look at Silver. After March, 1964,
Silver certificates were no longer convertible to Silver dollars; and in March,
1968, near the conclusion of the Johnson Administration, Silver backing of the
dollar was removed. On the 1929 series of notes, it read: "Redeemable in
gold on demand at the United States Treasury, or in gold or lawful money at any
Federal Reserve Bank." This was just like the Silver Certificate, which
was guaranteed by a dollar in silver that was on deposit. On the 1934 series of
notes, it read: "This note is legal tender for all debts, public and
private, and is redeemable in lawful money at the United States Treasury, or at
any Federal Reserve Bank." The 1950 series bore the same information, but
reduced it to three lines, and reduced the size of the type. In the 1953
series, the wording was totally removed, although the bottom portion contained
a promise to "pay the bearer on demand." However, in 1963, even that
message was removed, and our dollars became nothing more than worthless pieces
of paper because they no longer met the legal requirements of a note, which
meant it had to list an issuing bank, and amount payable, a payee or 'bearer,'
and a time for payment, which was 'on demand.'
Since 1933, the Reserve has been printing
too much money, compared to the declining Gross National Product (GNP). The GNP
is the accumulated values of services and goods produced in the country. If the
GNP is 4%, then the money produced should only be about 5-6%, thus insuring
enough money to keep the goods produced by the GNP in circulation. Additional
social services, which are promised during election year rhetoric to gain
votes, increase the Federal Budget, so more money is printed. Then the
Government will cut the Budget, establish wage and price controls. The extra
money in circulation decreases the value of the dollar, and prices go up.
Simply put, too much money in circulation causes inflation, and that is what
the Reserve is doing, purposely printing too much money in order to destroy the
economy. On the other hand, if they would stop printing money, our economy would
collapse.
The Reserve is responsible for setting the
interest rate that member banks can borrow from the Reserve, thus controlling
the interest rates of the entire country. So what it boils down to, the Federal
Reserve determines the amount of money needed, which is created by the
International Bankers out of nothing. Besides the face value, they charge the
government 3¢ to produce each bill. The Federal government pays the Reserve in
bonds (which are also printed by the Reserve), and then pay the bonds off at a
high rate of interest. That interest will very soon become the largest item in
the Federal Budget.
William McChesney Martin, a member of the
Council on Foreign Relations, and Chairman of the Federal Reserve during the
'New Frontier' years of the Kennedy Administration, testified to the Federal
Banking Committee, that the value of the dollar was being scientifically
brought down each year by 3-31/2%, in order to allow wages to go up. The
reasoning behind this, was that the people were being made to think that they
were getting more, when in fact they were really getting less.
The Congress has also contributed to this
process, by approving Federal Budgets, year after year, which requires the
printing of more money to finance the debt, which is now over $
4,800,000,000,000 (4.8 trillion). When Wilson was President, the debt was about
$1 billion, and in 1974, the debt was about $1 trillion.
In 1937, Rep. Charles G. Binderup of
Nebraska, realizing the consequences of the Federal Reserve System, called for
the Government to buy all the stock, and to create a new Board controlled by
Congress to regulate the value of the currency and the volume of bank deposits,
thus eliminating the FED's independence. He was defeated for re-election.
Others have also tried to introduce various Bills to control the Federal
Reserve: Rep. Goldborough (1935), Rep. Jerry Voorhis of California (1940,
1943), Sen. M. M. Logan of Kentucky, and Rep. Usher L. Burdick of North Dakota.
Rep. Wright Patman of Texas (who was the
House Banking Chairman until 1975), said in 1952: "In fact there has never
been an independent audit of either the twelve banks of the Federal Reserve
Board that has been filed with the Congress...For 40 years the system, while
freely using the money of the government, has not made a proper
accounting." Patman, said that the Federal Open Market Committee (who, in
addition to the Board of Governors, decide the country's monetary policy) is
"one of the most secret societies. These twelve men decide what happens in
the economy...In making decisions they check with no one - not the President,
not the Congress, not the people." Patman also said: "In the United
States 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." During his career, Patman has
sought to force the FED to allow an independent audit, lessen the influence of
the large banks, shorten the terms of the FED Governors, expose it to regular
Congressional review just like any other Federal agency, and to have only
officials nominated by the President and confirmed by Congress to be on the
Federal Open Market Committee. In 1967, Patman tried to have them audited, and
on January 22, 1971, introduced HR11, which would have altered its
organization, diminishing much of its power. He was later removed from the
Chairmanship of the House Banking and Currency Committee, which he held for
years.
On January 22, 1971, Rep. John R. Rarick of
Louisiana introduced HR351: "To vest in the Government of the United
States the full, absolute, complete, and unconditional ownership of the twelve
Federal Reserve Banks." He said: "The Federal Reserve is not an
agency of government. It is a private banking monopoly." He was later
defeated for re-election. During the 1980's, Rep. Phil Crane of Illinois
introduced House Resolution HR70 that called for an annual audit of the FED
(which never came to a full vote); and Rep. Henry Gonzales of Texas introduced
HR1470, that called for the repeal of the Federal Reserve Act.
The Federal Reserve System has never been
audited, and their meetings, and minutes of those meetings, are not open to the
public. They have repelled all attempts to be audited. In 1967, Arthur Burns,
the Chairman of the Federal Reserve, said that an audit would threaten the
independence of the Reserve.
In 1979, after dismissing Secretary of
Treasury, Michael Blumenthal, President Jimmy Carter offered the position to
American Illuminati chief, David Rockefeller, the CEO of Chase-Manhattan Bank,
as did Nixon, but he turned it down. He also turned down the nomination for the
Chairmanship of the Federal Reserve Board. Carter then appointed Paul Volcker
as Chairman. Volcker graduated from Princeton with a degree in Economics, and
from Harvard, with a degree in Public Administration. He was an economist with
the Federal Reserve Bank of New York (1952-57), worked at the Chase Manhattan
Bank (1957-61), was with the U.S. Treasury Department (1961-65), Deputy Under
Secretary for Monetary Affairs (1963-65), Under Secretary for Monetary Affairs
(1969-74), and President of the New York Federal Reserve Bank (1975-79). In the
Nixon Administration, as the Under Secretary for Monetary Policy and
International Affairs, the executive branch official who works most closely
with the Federal Reserve, he and Treasury Secretary John Connally helped
formulate the policy that took us off the gold standard in 1971, because of the
dwindling gold reserves at Fort Knox. Volcker was chosen because he was the
"candidate of Wall Street." He was a Trilateralist, and a major
Rockefeller supporter. Bert Lance, the Georgia banker and political advisor to
Carter who became his Budget Director, and was later forced to resign,
contacted Gerald Rafshoon, a Carter aide, and said that if Volcker would be
appointed, he would be "mortgaging his re-election to the Federal
Reserve." Lance predicted that he would bring high interest rates and high
unemployment. He was confirmed by the Senate Banking Committee in August, 1979,
replacing Arthur Burns, an Austrian-born economist who was a CFR member with
close ties to the Rockefellers. Volcker was against a gold-back dollar, and
gold being used as a form of currency. He attempted to tighten the money
situation in order to curb the 10% annual growth in the money supply, and to
ease the pressure of loan demand. The result was a dramatic increase in
interest rates, which climbed to 131/2% by September, 1979, and then soared to
211/2% by December, 1980.
Conjecture could dictate that this economic
decline was purposely engineered to cause the political decline of Carter. In
response to the rising interest rates, Carter said: "As you well know, I
don't have control over the FED, none at all. It's carefully isolated from any
influence by the President or the Congress. This has been done for many
generations and I think it's a wise thing to do." Even though inflation
had skyrocketed to all-time highs, Reagan kept Volcker on. It was Volcker who
started the collapse of the U. S. economy.
During the 1970's, many banks had left the
Federal Reserve, and in December, 1979, Volcker told the House Banking
Committee that "300 banks with deposits of $18.4 billion have quit the FED
within the past 41/2 years," and that another 575 of the remaining 5,480
member banks, with deposits of $70 billion, had indicated that they intended to
withdraw. He said that this would curtail their control over the money supply,
and that led Congress, in 1980, to pass the Monetary Control Act, which gave
the Federal Reserve control of all banking institutions, regardless if they are
members or not.
Alan Greenspan, who became the Chairman of
the Federal Reserve Board in 1987, is a member of the Council of Foreign
Relations. He has a bachelor's and master's, degree, and a doctorate in
Economics from New York University. He met Ayn Rand, the author of Atlas
Shrugged, in 1952, and they became friends. It is from her that he learned that
capitalism "is not only efficient and practical, but also moral." In
February, 1995, the seventh increase in the interest rate, within the period of
a year, took place. This put Greenspan in the limelight, as well as the Federal
Reserve. It was very interesting how the media spin doctors churned out
information that totally skirted the issue concerning the FED's actual role in
controlling our economy.
In the mid-1970's, Paper 447, Article 3,
from the World Bank, said that the World economy would be fairly stable until
1980, when it would begin falling, in domino fashion. On October 29, 1975, the
Wall Street Journal printed a comment by H. Johannes Witteveen, Managing
Director of the United Nation's International Monetary Fund, that the IMF
"ought to evolve into a World Central Bank...to prevent inflation."
Dr. H. A. Murkline, Director of the International Institute University in
Irving, Texas, wrote in World Oil: 1976, that he projected that the Federal Government
could only hold out till the end of 1981. Dow Theory Letters, Inc. reported
that by 1982, the cost of dealing with the national debt "would eat up all
the government tax money available."
The Robbins Report of January 15, 1978,
said: "If Carter introduces Bancor, which will be the yielding of our
dollar to the ECU (European Currency Unit), this is what will happen: look for
hyperinflation and collapse of all the world's paper money before 1985."
Julian Snyder said in the International Money Line of February, 1978: "The
United States is trying to solve its problem through currency depreciation
(debasement)...it will not work. If the crash does not occur this year, it
could be postponed until 1982."
On March 13, 1979, while meeting at
Strasbourg, France, the Parliament of Europe, which governs the European
Economic Community (Common Market), oversaw the establishment of a new European
money system. Known as the ECU, it was backed by 20% of the participating
countries' gold reserves (about 3,150 tons). What little strength our dollar
had, came from the fact that all nations buying oil from OPEC, had to use U. S.
dollars. Then came the word in March, 1980, from Arab diplomatic sources at the
United Nations that the Chase Manhattan Bank was making plans to drop the
dollar in lieu of the ECU.
Dr. Franz Pick, a well known authority on
world currency, said in December, 1979, in the Silver and Gold Report:
"The most serious problem we face today is the debasement of our currency
by the government. The government will continue to debase the dollar
until...within 12-24, months it will shrink to 1 cent...at which time
Washington will be forced to create the new hard currency...A currency reform
is nothing but a fancy name for state bankruptcy...A currency reform completes
the expropriation of all kinds of savings...it will wipe out all public and
private bonds, most pensions; all annuities, and all endowments."
Even though our economy continues to hang
on, more and more financial analysts are talking about the disastrous condition
of our financial system. In 1992, independent Presidential candidate H. Ross
Perot garnered nearly 20% of the vote by making the state of the economy an
issue during the campaign. In 1993, Sen. Bob Kerrey (Democrat, NE) promised to
support President Bill Clinton's Budget Plan, if Clinton would appoint a
Committee to study the condition of the American economy. The President
established a 32-member bipartisan committee and in August, 1994, they issued
their report. According to the committee's findings, by the year 2012, unless
drastic changes are made, we won't even be able to pay the interest on the
national debt. Knowing this, if the federal government allows the current trend
to continue, then it is obvious that the destruction of the American economy
has been part of a deliberate plot to financially enslave our nation.
Dr. Pick said that late 1983, or early 1984
was the target date for the "new money." Carl Mintz, a staff member
of the House Banking Committee, had said: "I believe it's in the billions
of dollars, and it's buried in lots of places." It is believed to be
already printed, and stored at the Federal Reserve Emergency Relocation
Facility in Culpepper, Virginia, which is built into the side of a mountain,
and would be able to continue functioning during the aftermath of a nuclear or
natural disaster; and the 200,000 sq. ft. Federal Reserve underground facility
in Mt. Weather, Virginia (near Berryville), which is the primary relocation
area for the President, Cabinet Secretaries, Supreme Court Justices, and
several thousand federal employees (Congress would be relocated to an
underground facility in White Sulphur Springs, West Virginia). When our
monetary system is finally destroyed, the new money will be issued.
Rep. Ron Paul, Republican from Texas, who
was on the Committee on Banking, Finance and Urban Affairs, wrote about the new
money in a letter to Charles T. Roberts, Executive Vice-President of the Hull
State Bank in Texas: "In a closed briefing for the members of the House
Banking Committee on November 2nd, representatives of the Bureau of Engraving
and Printing, the Federal Reserve, and the Secret Service described plans for
making changes in Federal Reserve Notes beginning in 1985 (although the long
range target is 1988)...These changes, which will probably include taggents,
security threads, and colors, and may include holograms, diffraction gratings,
or watermarks, will be made in coordination with six other nations: Canada,
Britain, Japan, Australia, West Germany and Switzerland. Japan, for example,
will begin recalling its present currency in November, 1984, and have it nearly
completed within six months...According to the government, the only reason for
the currency changes is to deter counterfeiting. Although it was admitted by
one spokesman in the group that there would have to be a call-in of our present
currency for new currency to work, the spokesmen for the government were
adamant in saying that there was no other motive for a currency change..."
According to law, the Treasury Secretary has the authority to change the
currency.
Over $3 million had been spent under
"counterfeit prevention" authority for the development of the new
money, which according to the Currency Design Act (HR6005) hearings, would be issued
by the Federal Reserve Board. It was first reported by the Patterson
Organization in Cincinnati, Ohio, that in a July, 1983 market survey in Buena
Park, California, people were shown proposed designs for "new U. S. dollar
bills." The variations shown, consisted of each denomination being a
different color; Federal Reserve seals replaced with a design utilizing
reflective ink; and other optical devices like holograms (a process which
produces a 3-dimensional image which can change color depending on the angle it
is viewed), and multilayer diffraction gratings (similar to a hologram); as
well as bills containing metal security threads, and planchettes (red and blue
colored discs incorporated into the paper, similar to threads) to trigger
scanning equipment which would detect its presence, and to sort cash faster. A
consumer research firm from Illinois was hired by the Treasury Department to
gauge the public's reactions to the various designs.
It was shown that a drastic change would
not be accepted, so a process of incrementalism was adopted. It was decided
that the Bureau of Printing and Engraving would have a fine metallic strip
running through the currency, leaving the basic design intact; however, they
later decided to use a clear imprinted polyester strip, woven into the paper,
running vertically on the left side of the Federal Reserve Seal. The length of
the translucent polyester filament reads "USA100" for $100 bills, and
"USA50" for $50 bills, and can only be read if held up to direct
light. It was reported that a company called Checkmate Electronics, Inc., which
manufactures the equipment needed to scan checks, scanned the new money, and
found the strip to contain "machine detectable" aluminum. Their scan
produced an indecipherable bar code.
Though the basic design did not change,
there is microscopic type printed around the picture which reads, "The
United States of America," but appears to only be a line. This currency
with oversized, off-center portraits, was introduced in 1996 with the $100
bills, then $50 bills and $20 bills (1998), and culminated with $10's and $5's
in 2000. The Government discontinued printing any of the old money, and began
emptying their vaults to get rid of the old bills.
In June of 2002, only a few years after the
last makeover, the rumors of colored money became a fact. As early as the fall
of 2003, the Bureau of Engraving and Printing will be introducing a new,
colored $20 bill (the most counterfeited note), and 12 to 18 months after that,
new $50 and $100 bills. Even though the current primary design and traditional
look will be maintained, subtle background colors are going to be added, which
will vary with each denomination. Again, anti-counterfeiting measures were
being cited as the reason.
The International Monetary Fund has been
responsible for the decline of our dollar, and our present economic situation.
The first step to initiating this "crash" was the Monetary Control
Act of 1980, which instead of a 6:1 ratio, mandated the Federal Reserve to only
have one dollar on deposit for every twelve they create. Further plans were
made during a meeting of Western leaders at Williamsburg, Virginia, on May
28-30, 1983.
International cooperation has been intense
to coordinate currency changes among its member governments. In 1985, officials
from the Morgan Bank in New York met with the Credit Lyonnais Bank in France.
They established the European Currency Unit Banking Association (ECUBA), to get
world cooperation for a unified currency, and had support from bankers in
Europe, Japan, and the United States. It was an offshoot of the Banking
Federation of the European Community (BFEC), which has been engaged in shutting
down small banks in order to develop a conglomerate of a few huge banks. In
October, 1987, the Association for the Monetary Union of Europe (AMUE),
secretly met and recommended that the ECU (European Currency Unit) replace
existing national currencies; and that all European Central Banks be combined
into one and issue the ECU as the official unified currency (which is scheduled
to occur in the year 2000). It is believed that the plan is to have only three
central banks in the world: The Federal Reserve Bank, the European Central
Bank, and the Central Bank of Japan. In a June, 1989 hearing of the Senate Banking
Securities Subcommittee, Alan Greenspan, Chairman of the Federal Reserve, said
that exchange rates could be fixed in order to solve the problem of uniformity
between the currencies of various nations.
Many countries had planned to come out with
new money, such as Switzerland, the United Kingdom, Japan, Canada, France,
Germany, Australia, and Brazil. Of the countries that already had, most
currencies had a common 1" square, usually on the left side of the bill.
Held over a light, a hologram appears on the spot, barely visible to the naked
eye, which cannot be reproduced on a copier. It is believed that this spot is
reserved for a central World Bank overprint. They also contain metallic strips
that can be detected when they pass through scanners at airports and
international borders.
On May 10, 1994, USA Today carried a page
one article concerning major changes in the design of the paper currency, which
was expected to take place by the end of the year. Officials from the
Department of the Treasury, the Secret Service, and the Bureau of Engraving
said that the changes were necessary to combat counterfeiters. The minor
changes they had made before, for the same reason, had stopped with the twenty
dollar bill, which caused many to believe that the changes were just a
smokescreen to prepare us for bigger changes in the appearance of the money.
The article was accompanied with a picture of the new $100 bill, with a larger
portrait of Benjamin Franklin which has been pushed to the right side of the
bill, and the Eagle in the center. The line "United States of
America" appears along the top right, and the line "One Hundred
Dollars" appears on the lower left, with the serial number being placed
over that. There is a conspicuous open spot on the left side of the bill, very
similar to the new currency in other countries.
Some financial experts have theorized that
when every denomination is changed over to the new money, that the business
sector may not want to accept old bills, which would then become worthless, and
could create a financial emergency. Federal officials have said that the old
money would be accepted, but scrutinized. It has been suggested that the
government could really take advantage of the situation, that in order for
people to exchange their old money for new, an exchange rate may be determined
which would benefit the economy. For example, it may take two old dollars to
exchange for a new one.
Or perhaps, the new money is just a transitional
currency, the first step in testing the public's willingness to accept economic
change. The Reserve had about seven currency sorting machines which counted up
to 55,000 bills per minute, but by the end of 1983, they were to receive 110
new machines which could count up to 72,000 bills per minute. Jane Kettleson,
an economic consultant to the U. S. Paper Exchange, said that shortly,
"the FED will have the capability to physically replace the entire U. S.
currency in circulation in just four days time."
The institution of a common world-wide
currency may be delayed because of the possibility of moving right to a
cashless system, making paper money obsolete. If this is the case, there would
be a massive campaign to promote debit cards and a move to accommodate their
use in all aspects of business. The Visa MagiCard seemed to be the first step
towards a national debit card. With this card, you could make purchases at any
of the 10 million merchants who accept Visa, and have the amount electronically
deducted from your checking account. Financial experts believed that within
only a few years, there would be more debit cards than credit cards.
In a letter to Edward M. House (President
Wilson's closest aide), dated November 23, 1933, Franklin D. Roosevelt said:
"The real truth of the matter is, and you and I know, that a financial
element in the large centers has owned the government of the U.S. since the
days of Andrew Jackson." Henry Ford, founder of the Ford Motor Company,
said: "It is well enough that the people of the nation do not understand
our banking and monetary system, for if they did, I believe there would be a
revolution before tomorrow morning." In 1957, Sen. George W. Malone of
Nevada said before Congress about the Federal Reserve: "I believe that if
the people of this nation fully understood what Congress has done to them over
the past 49 years, they would move on Washington: they would not wait for an
election...It adds up to a preconceived plan to destroy the economic and social
independence of the United States."