03/23/11
Abstract: How The Federal Reserve Keeps Laymen From Becoming Independent: They lower interest rates, attracting loans, then contract the economy and money supply, to siphon off the assets when the individuals can’t pay. Slowly, like the inevitable formation of a stalagmite, this is engineered. By the looks of the severity of their moves, it appears as if they believe this is a final bout in order to gain control over all.
In the United States, the remains of a millennia old practice irresponsibly controls the economy for the gain of few people. Since they have established themselves to the point they are at now, democracy only remains as an illusion to keep the people from becoming aware. This crime is called monetary manipulation, and the form that exists today is a very well disguised operation dubbed private central banking. Central banks, in reality, are monopolies on money, as they are self-oriented to be the only ones legally appointed to print a nation’s currency. In the case of the United States, the private Federal Reserve is what has been established within our territory. Central banks ostensibly are sold as economic stabilizers by means of creating new money to lend to failing banks. History has shown, that when a central bank is established in a country, the nation inevitably ends up in debt. For example, when the Bank of England was created, national debt went up from £12 million in 1700 to £850 million in 1815, at the end of the Napoleonic wars (UK National Debt Clock). In our country, the present Federal Reserve
system was created as part of the panic of 1907, when the stock market fell by 50%, which created bank runs, and resulted in thousands bank failures (But Now You Know). The reality is, the reason banks would need to be bailed out is because of their current, abusive fractional reserve banking system. As noted in a edition of the then independent New York Times, on December 24th, 1913,
“[The banks] were not insolvent. They had plenty of good assets, including millions of dollars’ worth of commercial paper, most of it not yet due. There was no commercial paper market outside of the banks themselves, and their depositors would not accept these obligations of others, no matter how good they might be at maturity, in lieu of the currency to which they were entitled.” (The New York Times)
After the people had sufficiently suffered, the banking elite, proponents of a central bank in America, took this as an opportunity to gain power over commerce in the United States, and over the people themselves.
In 1910, seven men, representatives of J.P. Morgan and Rockefeller, met at the now famous Jekyll Island, off the coast of Georgia, to draw a bill to allow such a system (Griffin, 3). Clearly those with specialized interests of big business cannot possibly write a bill that benefits democracy. Among the present was Republican Senator Nelson Aldrich, who’s ego compelled him to lead the group to dub the draft “The Aldrich Bill”, against Paul Warburg’s counsel. Senator Aldrich was known for his close ties to big business, and the bill was immediately rejected by congress. Retreating from taking the official vote, a new bill was redrafted, weakened, and put behind two republicans: Representative Carter Glass (VA) and Senator Robert Latham Owen (OK). This scheme was a deception by the same banking powers in an attempt to get the bill passed, which seemed to benefit the people, as it was democratically supported.
Senator Aldrich was even prompted to curse the passing of the bill as too restrictive big business interests. Luckily, such face value deceptions were not enough to fool Congress, as the bill was still held in contempt once read over. A final “Great Deception” occurred when the convocation was dismissed for christmas recess. The decision was to be finalized after everybody had reconvened. Mistakenly, the session neglected to end with sani dai, because this meant those still present at the time were eligible to vote, and at the time of the bill’s unanimous passing, only
three members were present at Congress. What a ruthless succession of deceptions! When congress reconvened, republican congressman Charles A. Lindbergh of Minnesota is quoted as,
“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.…The money power overawes the legislative and executive forces of the Nation and of the States. I have seen these forces exerted
during the different stages of this bill.…” (Congressman Charles A. Lindbergh, referring to the act which established the Federal Reserve. Congressional Record, Vol. 51, p. 1446. December 22, 1913.)
The only step left in the bill’s passing into law was newly elected president Woodrow WIlson’s veto power. Unfortunately, his election had been funded by business interests under agreement that he would sign the bill. This was the initiation of the Federal Reserve Act and the creation of the private Federal Reserve.
So what did the act allow? A central bank, sold as a safety net for banks loaning out grossly more than they had, is given the power to print out money from debt. The problem is that the Federal Reserve is not regulated and through that ability, is able to change the money supply as they, precisely business, sees fit. This act may as well have changed the name of the country to “The United States of Plutocracy.” (Still and Carmack)
So, has the Fed worked as it’s proponents had publicized? On The Federal Reserve’s effectiveness as an agent of the good of the economy and for the benefit of the people’s prosperity, in that they facilitate trade, here is a track record of economic history under their watch: There have been crashes in 1921 and 1929, a depression from 1929 to 1939, recessions in ’53, ’57, ’69, ’79, and ’81, and a stock market black monday in 1987. Currently, personal debt and bankruptcies are at a record high, as well as bank failures, domestic heavy industry has primarily been replaced by cheap outsourced labor, we are facing an international trade deficit for the first time in our nation’s history, 75% of downtown Los Angeles and other urban areas are now owned by foreigners, and presently, of course, we are now in a recession, leading to the greatest depression in our history (psychetruth). Federal Reserve disguises itself as an institution for the benefit of people, but, in reality, it had been created for the organized benefit of the banking elite, systematically regulated by private interests of power on governmental scale, based on an intentional ponzi-scheme of fractional reserve banking, monopoly, interest, and debt.
To understand the monetary abuses, the purpose of money and responsible issuing of it must be well understood. So, what is money? We have money to liquidate goods. This means that in a monetary system, something can be traded for anything else when selling it to a buyer, because you receive the money that you would use to buy from someone who has what you need. Clearly, this is advantageous to the previous barter system, where a buyer must have what the seller wishes to receive in order for a transaction to occur. Constantly trading, in search of what you require is also avoided. A unit of currency, when introduced, is agreed to be of equal value to a certain amount of goods. More money must be created when there is a growth (more goods
and services entering the economy) to assist trade, or reduced when the amount of goods depletes in order to keep the rate of exchange of equal value to the reality of resources available.
However, the Fed creates new money for private interest, not to stabilize the economy. This is damaging because when the Federal Reserve issues new money out of nothing, they are not creating new goods or services. This act is totally unconstitutional, as addressed by Dr. Edwin Vieira, President of the National Alliance for Constitutional Money,
“Now what is interesting about those notes is they have been declared, or were from the beginning, declared to be obligations of the United States and to be redeemed in lawful money, and yet nevertheless, in complete disregard of Article I, Section 9, Clause 7 of the Constitution, Congress has never enacted a single statute authorizing the dollar amount of obligations that the Federal Reserve can generate out of nothing, and from which the treasury of the United States, and ultimately the taxpayers, are somehow liable as guarantors or sureties.” (FUTURE TAXPAYERS)
The people then have faith in an economy which with too much momentum, can deplete the resources available before they are renewed, damaging the environment. Eventually, as the market realizes that it hasn’t gained in wealth, but in new money, those with something to offer will raise the price of their service proportionally higher than before. Hence, the money’s, or currency’s, value is equal to the amount of money in circulation divided by the amount of goods and services available in an economy.
So why is this done? When presented so clearly, the Fed’s authority is an insanity that can only harm an economy and it’s resources. The truth is that The Federal Reserve is a lobbied abuse of our economy by a few rich men in attempt to hijack it’s resources to turn the highest
profits with a negative economic contribution the rest of the economy. Their means are achieved through monetary interest on the money supply and printing of currency only with 10% of the value in assets behind it. These assets are, in fact, hardly ever are actual properties. They are debt. The Federal Reserve pulls this off, as when dealing with our government, by expanding the
credit of the Treasury. The U.S Treasury promises to pay the Fed back by selling U.S. Treasury bonds accompanied at interest. The Fed prints out the credit in the form of dollars, which is then given to congress, or to the banks if they issue their own bonds. These bonds, or debt of the Treasury, are used as reserves. The Fed then creates an extra 90% which is printed out of nothing (Still and Carmack). You can’t have assets, loans, and liabilities, reserves, be the same money unless the new money is counterfeit. Printing more money gives the illusion of a boom and interest rates are lowered, in effect creating more loans. The more money spent through loans, more has to be paid back to the Fed with interest. Since all money is printed at interest, the debt can never be paid back because if you gave every dollar all the way back to the Fed, that would only cover the money printed. You can never cover the interest because the currency in circulation is the loan. Since there would be no dollars left if debt was paid off, you are still in debt because of the interest. The way we attempt to pay off just the interest every year is wholly through income tax, and the interest on the national debt is now consuming HALF of all of all our taxes ! The international bankers don’t want us to pay back the national debt since they get rich off of our interest. Since the Fed is the only one printing our money, all money issued into existence by being part of a loan, is adding to the national debt. What is entirely abominable is the printing of New debt to assist in paying off the interest, resulting in a self-perpetuating
mountain of debt!! Imagine, they get all of that interest from just printing money. How can they justly earn interest on an investment that isn’t real? Such activity is worse than Enron! Further accelerating our debt, when the individual banks are supplied with this money, they then lend it out at interest again under the same fractional reserve model, creating an extra fake 90% allocated for loans whenever the same money enters the bank (ThaLinguist). This results in an investment, risk-free and costless to the issuing banks and the public spending themselves into debt eternally because an over-inflated economy cannot support the credit to cover with resources.
Also, the banking system tries to take your wealth in the short term by halting your ability to pay interest. Achieved when suddenly limiting the amount of private loans, increasing the
interest rate. At the top, the central bank burns a fraction of the fake money they receive, and the liquidity of the market falls, therefore, sickening the economy below it’s resource availability, ending in a deflation. That means more money being paid to the banks than is distributed, so those who have loans and the least liquidity financially, get sheared of their houses every time the market busts. Ultimately, this is engineered so the loans are not redeemable, and all property is then taken by the banks (Still and Carmack). This will end in plutocracy, without a metaphor or exaggeration. A quote by the 1891 American Bankers Association as printed in the congressional record on April 19th, 1913, demonstrates how coldly bankers orchestrate their scheme:
“On September 1st we will not renew our loans under any consideration. On September 1st we will demand our money. We will foreclose and become mortgagees. We can take two-thirds of the farms west of the Mississippi and thousands east of the Mississippi as well, at out own price... Then the farmers will become tenants as in England.”
-1891 American Bankers Association as printed in the congressional record on Apr 19 1913 (Still and Carmack)
The central bank initiated such a policy from 1914 to 1919, where the money supply increased by nearly 100%. In 1921-’29, an additional 62% increase in money supply occurred, and with low interest rate, again resulting in more loans. At an appointed time, all brokers simultaneously called in all their margin loans. This action created bank runs. The Reserve then, in blatant contradiction of their intended purpose, began to contract the money supply, reversing the fractional system to their profit. Financial institutions were stung out because the Federal Reserve wouldn’t loan them any liquidity and contracted the money supply. In reality, they raised the reserve rate, replacing the money lent in the end with foreclosures (Still an Carmack). It’s like casting a fishing line, which is only worth string, and bringing back a borrower, the fish. If the reserve rate is raised from 10% to 50%, where do you think that money comes from? If the Depression was intended to be fixed, the Fed only needed to lend more money. Banks would have been able to cover the demand of withdrawal, but made to default instead. Unless you could barter, you wouldn’t survive. It must be emphasized this action was in the DIRECT contradiction with what the Fed’s proponent’s claimed how the Fed was necessary!! The panic at the stock market, in effect, was created by simultaneous margin calls. When the Fed held on to money, more than 5,400 competition banks shut down and countless farms and assets had been foreclosed to bankers (ThaLinguist). This is intentionally how the Federal Reserve had stripped all good people of all property with an illegitimate, uncontested claim, calling it profits, or more subtly, their interest. Then, a triple whammy, the coup de gras against the American people came when President Roosevelt ordered the confiscation of all gold into the bankers hands, which was predicated by the Fed increasing their reserves. From Fort Knox, where it was deposited, the gold was then sold to european interests who had lost gold to America by the end of First world war. The previous gold price of $20 an ounce was then raised to $35 an ounce while it was still illegal to Americans for that price. When Reagan created the "Gold Committee" to audit Fort Knox, the remaining gold was determined to be all owned by the Fed as the collateral for America's debt, as they had also increased their reserves required. At Knox’s peak, 701 million ounces of gold were audited by Eisenhower in 1949. Officially, the remains are now counted to be only 147.3 million ounces, and it’s all been taken by the Federal reserve. 69.9% of all gold in the world coveted by international bankers, and the average American starved (Weber)! America’s people usurped and pillaged and theirs good’s stolen by the central banks and Federal Reserve’s plans. All money being based on debt means that the value of all of a persons ownership is worth, on the whole, how it can pay back someone, because the money created at the top is created out of the Government’s promise to pay it back with interest. A banker starts with principle from investors or from his own capital, which can be currency or assets. Then they loan it out at interest. When it comes back, they loan out 90 percent on top of that which, if you can pull back to look, they counterfeit every cent. Fractional reserve banks collect interest on budget-book markings. So, because additional interest is collected each time money enters a bank, while the amount loaned drops by the 10% used as reserves every time to cover withdrawals by the second depositors, initial money approaches as a limit, expanding to ten times the debt it initially was! In this way, more currency is created, value of the currency drops proportionally. The more it is used as exchange, the more money is owed to the bank dealt with acting as disguising what they truly are: toll collectors. At the peak of the pyramid scheme lies the Federal Reserve, The IMF (The International Monetary Fund), and The World Bank at the top, both privately run, gaining more interest each time over. The banking system will always fake most of the money as long as they can cover the withdrawals of depositors, or then expand the money to keep cheating. This effectively puts ownership of all things that can be exchanged with central bank issued currency into the hands of a bank over time. Whoever profits the most from interest, ends up the a tyrant and emperor where all things are acquired by the exchange of corrupt money.
Hence, the thorns in our common side are the fractional reserve banking system giving banks excessive power to control the volume of money supply, and the other private currency, which collects an interest toll to be issued. Take money printing away from private banks and you will destroy the monopoly they have systematically brought about over years of planning, and end the power of the few to charge take assets. A law requiring a 100% reserve system on the small banks remaining will block all attempts to create another unofficial trust. The government must combine this with a regulated system calculated expansion or detraction of the currency in motion with our economically available resources to keep the value of the means of exchange of stable value, averting the dollar’s impending crash in a few years. This action will progressively end the debt if demanded by Congress and every person. The interest will be repaid as the economy recovers, or rather, the debt, plus the false claim to interest, can legally be denied outright. In tribute to former President Andrew Jackson, this is how the “hydra” is to be slain.
Bibliography (MLA)
Griffin, G. Edward. The Creature from Jekyll Island: a Second Look at the Federal Reserve. Westlake
Village, CA: American Media, 2002. Print.
The Money Masters: How International Bankers Gained Control of America. Dir. William T. Still. Prod. Patrick S. J. Carmack. Perf. William T. Still. 2008. Web. 14 Feb. 2011. <http://video.google.com/videoplay?docid=-515319560256183936#>.
"OWEN-GLASS BILL FRUIT OF 1907 PANIC - Aldrich Bill a Forerunner, but Its Authorship Helped Its Defeat. WILSON CARRIED HIS POINT Was Insistent Upon Government Control of Reserve Board, and Bankers Acquiesced. - View Article - NYTimes.com." The New York Times - Breaking News, World News & Multimedia. N.p., n.d. Web. 22 Mar. 2011. <http://query.nytimes.com/mem/archive-free/pdf?res=FB0D12FA3C5913738DDDAD0A94DA415B838DF1D3>.
psychetruth. "Creature from Jekyll Island 1 of 12 ." YouTube. N.p., 24 Sept. 2008. Web. 22 Mar. 2011. <http://www.youtube.com/watch?v=7auQEXTWomA>.
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"The History Of National Debt in the UK." UK National Debt Clock - No-nonsense Guide to Britain's Debt Crisis. N.p., n.d. Web. 22 Mar. 2011. <http://www.debtbombshell.com/history-of-national-debt.htm>.
TAXPAYERS, FUTURE. "How to restore Constitutional money." The Conservative Activist's Home Page. N.p., n.d. Web. 22 Mar. 2011. <http://www.conservativeusa.org/vieir100.htm>.
"The History of Economic Downturns in the US « But Now You Know." But Now You Know. N.p., n.d. Web. 22 Mar. 2011. <http://butnowyouknow.wordpress.com/those-who-fail-to-learn-from-history/history-of-economic-downturns-in-the-us/>.
Weber, Chris. "The Great American Disaster: How Much Gold Remains In Fort Knox? by Chris Weber." LewRockwell.com. N.p., n.d. Web. 22 Mar. 2011. <http://www.lewrockwell.com/orig11/weber-c1.1.1.html>.
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