The history of how the super rich repeatedly stole from the wealth of America's working folks
and three measures that would establish an honest monetary system
Panic of 1907
Three failed attempts of establishing a central bank in the United States did not dissuade a fourth. By the beginning of the 20th century the most influential business men and bankers were the J.D. Rockefeller, J.P. Morgan, Paul Warburg, and the Rothschilds.
The Panic of 1907 was a run on the American banking system as a result of a public announcement by J.P. Morgan that a prominent bank in New York was insolvent. The results were wide-spread mass withdrawals on the entire banking system. This forced the banks to call in their loans. Bankruptcies, repossessions and financial turmoil emerged.
Congress created the National Monetary Commission after the Panic of 1907 to draft up a plan for banking reform. Nelson Aldrich headed the Commission that comprised of two components - one to study the European central banking systems headed by Aldrich himself and another to study the American monetary system.
Centralized banking was met with much opposition from the American public, who were suspicious of a central bank and who charged that Aldrich was biased due to his close ties to wealthy bankers such as J.P. Morgan and his daughter's marriage to John D. Rockefeller, Jr.
Creation of the Federal Reserve
Allegedly, in exchange for financial support for his presidential campaign, Woodrow Wilson agreed that if elected, he would sign a bill that would lead to the formation of a central bank for the United States.
On 1910, a secret meeting took place on the Morgan estate on Jekyll Island, Georgia. Aldrich met with representatives of prominent banking firms. Such men included Henry Davison (senior partner of J.P. Morgan Company), Frank Vandelip (President of the National Bank of New York associated with the Rockefellers)
Over a period of ten days they drafted the Federal Reserve Act that was voted on in Congress on Monday 22 December 1913 between the hours of 1:30 am to 4:30 am when much of Congress was either sleeping or at home with their families for the Christmas holidays. It passed through the Senate the following morning and Woodrow Wilson signed the bill into law later that same day at 6:02 pm. This Act transferred control of the money supply of the United States from Congress as defined in the U.S. Constitution to the private banking elite.
The deceptive terminology of the name was carefully chosen because the American public did not want a central bank similar to those in Europe. The Federal Reserve is not a federal governmental entity nor is it a reserve, such as a governmental treasury, backing up its currency. The Federal Reserve is a legalized cartel of the money supply owned by private national banks, operating for the benefit of the few under the guise of protecting and promoting public interests.
The meeting on Jekyll Island remained unknown to the public until Forbes magazine founder Bertie Charles Forbes wrote an article about it in 1916, three years after the Federal Reserve Act was passed.
Wilson wrote in his book, The New Freedom:
"A great industrial nation is controlled by its system of credit. Our system of credit is privately concentrated. The growth of the nation, therefore, and all our activities are in the hands of a few men...[W]e 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 by free opinion, no longer a government by conviction and the vote of the majority, but a government by the opinion and the duress of small groups of dominant men." (Woodrow Wilson, The New Freedom: A Call for the Emancipation of the Generous Energies of a People)
A central banking system wherein every Dollar created is an instrument of debt requires the collection of large sums of money from the people to pay off the interest. Interestingly, 1913 was also the year that introduced the Sixteenth Amendment, thereby giving government the power to collect taxes based on income.
World War I
In 1914, when war broke out in Europe, the American public did not want to become involved. While President Woodrow Wilson publicly declared that the United States would remain neutral, efforts were being made behind the scenes to ensure America's entry into the war.
Wars are extremely profitable for central bankers because it forces the governments to further borrow addition money at interest. Secretary of State, William Jennings Bryan wrote, "the large banking interests were deeply interested in the world war because of the wide opportunities for large profits."
Allegedly on May 7, 1915 the Lusitania, an ocean-liner carrying American passengers, was deliberately sent into German controlled waters. The German Imperial embassy paid to have a warning ad in fifty East Coast newspapers, including those in New York, stating that anyone boarding the Lusitania would be doing so at their own risk . The ad appeared only in the Des Moines Register.
As expected, a German U-boat torpedoed the Lusitania. German records indicate that a large secondary explosion followed the torpedo hit leading some to speculate the storing of ammunition. As a result 1,198 people of the 1,959 aboard lost their lives and the U.S. shortly entered the war thereafter.
The First Moves of the Federal Reserve
The public was told that the creation of the Federal Reserve would stabilize the economy. From 1914-1919 the money supply nearly doubled.
This resulted in extensive loans to small businesses and the public. A calling in of the loans in 1920 resulted wide-spread bankruptcies and bank-runs marking the steep 1920-1 recession. Over 5400 independent and competitive private banks outside of the Federal Reserve System collapsed thus consolidating the power of the central banks.
The Harding administration did not intervene despite political pressure to do so. Harding's approach to the problem was, "the banks got themselves into this mess, so let them get themselves out of it." Since the Harding administration public management of the economy has emerged as a primary activity of the government.
President Harding was the sixth president to die while in office. It was during his "Voyage of Understanding"
The Great Depression
From 1921 to 1929 the Federal Reserve increased the money supply by 62% thus fuelling the period known as the Roaring Twenties. Further fuelling the rise in stock market indices was a new type of loan, known as a margin loan, whereby an investor would only need to put down 10% of the value of a stock with the remaining 90% being loaned from the broker.
Like today, these loans could be called in at any time and had to be paid within 24 hours, known as a margin call. This is typically accomplished by the selling of the stock purchased using the loan.
These two factors, loose monetary policy and easy loans resulted in a fivefold increase in the Dow Jones Industrial Average over the latter half of the 1920's.
The mass calling in of these margin loans by the New York banking establishment resulted in the devastating market crashes of October of 1929. "Black Thursday", the initial crash, occurred on October 24. The crash that caused general panic five days later on October 29 was known as "Black Tuesday".
Then, instead of expanding the money supply, the Federal Reserve contracted it, thereby creating the period known as the Great Depression. Congressman Wright Patman in A Primer On Money reported that the money supply decreased by eight billion dollars from 1929 to 1933, causing 11,630 banks of the total of 26,401 in the United States to go bankrupt. This allowed central bankers to buy up rival banks and whole corporations at a deep discount.
It is interesting to note that biographies of J.P. Morgan, Joe F. Kennedy, J.D. Rockefeller and Bernard Baruch indicate that they all managed to transfer their assets out of the stock market and into gold just before the crash of 1929.
Also Joseph P. Kennedy decided to sell his considerable stock holdings after hearing an investment tip from a shoe-shiner. Joe Kennedy went from having $4 million in 1929 to over $100 million in 1935.
Paul Warburg, a founder and original member of the Federal Reserve warned of the coming collapse and depression in an annual report to the stockholders of his International Acceptance Bank,
"If the orgies of unrestrained speculation are permitted to spread, the ultimate collapse is certain not only to affect the speculators themselves, but to bring about a general depression involving the entire country." (Paul Warburg, March 1929)
On June 10, 1932, Congressman Louis McFadden, a long-time adversary to the Federal Reserve, made a 25-minute speech before the House of Representatives, in which he accused the Federal Reserve of deliberately causing the Great Depression.
In 1933, McFadden introduced House Resolution No. 158, Articles of Impeachment for the Secretary of the Treasury, the Comptroller of the Currency, and the Board of Governors of the Federal Reserve, for numerous criminal acts, including but not limited to, conspiracy, fraud, unlawful conversion, and treason.
Louis McFadden died in Oct 3, 1936 during a visit to New York City. The official reason of death was "heart-failure sudden-death"
There were previously two alleged attacks on McFadden's life. The first came in the form of two revolver shots when he was in a cab outside one of the Capitol hotels. Both shots missed their intended target. The second was when he became violently ill after a political banquet at Washington. He was saved from a physician friend at the same banquet that
procured a stomach pump and gave McFadden emergency treatment.
Seizure of the American Public's Gold
Under the pretense of helping to end the Great Depression came the 1933 Gold Seizure whereby the Roosevelt Administration outlawed private ownership of gold. Under the threat of imprisonment for 10 years, a US$10,000 fine or both, everyone in America was required to turn in all gold bullion to the U.S. Treasury.
The rationale for the seizure was that the declining prices of the Great Depression were a direct result of overcapacity. This flawed reasoning resulted in the creation of disastrous policies such as National Industrial Recovery Act where business cartels were deliberately constructed to keep prices high and the Agricultural Adjustment Act that ordered mass destruction of livestock and crops in order to reduce supply and drive up prices. In a time when unemployment is at record highs and people are suffering from economic hardship, these policies are the complete opposite of what is required.
As a final component to the Roosevelt Administration'
On April 5, 1933, Roosevelt signed Executive Order 6102, which ordered people to turn in their gold to the government at payment of $20.67 per ounce. Individuals could hold up to $100 in gold coins, and there were some exceptions for dental use, jewelry, and artists and others who used gold in their jobs.
While U.S. citizens could be ordered not to hoard gold, Roosevelt knew he could not impose such a law on sovereign nations. Foreigners could still exchange there U.S. dollars for gold, but shortly after issuing Order 6102, Roosevelt devalued the Dollar to US$35 per ounce thereby decreasing the value of the Dollar overnight by 40.94%.
The result of these policies allowed greater ability of the Federal Reserve to increase the amount of money in circulation thereby increasing their revenue from interest.
John Fitzgerald Kennedy
On June 4, 1963, John F.Kennedy signed a virtually unknown Presidential decree, Executive Order 11110, a mere four months before his assassination on November 22, 1963. This decree returned to the U.S. Federal government the Constitutional right to create and "to issue silver certificates against any silver bullion, silver, or standard silver dollars in the Treasury."
As a result, $4,292,893,815 of new "Kennedy Bills" were created through the U.S. Treasury instead of the Federal Reserve System. In 1964, Kennedy's successor, Lyndon B. Johnson, stated that, "Silver has become too valuable to be used as money." The Kennedy bills were removed from circulation.
The importance of these bills is not to be underestimated. The regular Federal Reserve Notes are created through the Fed who exchanges them for an interest-paying government bond. These "United States Notes" were directly created through the U.S. Treasury and backed by the silver held there.
NOTE:
Assassination of President Garfield
President James A. Garfield was inaugurated in 1881 and was the second American president to be assassinated. He was shot by Charles J. Guiteau on July 2, 1881 and later died from medical complications on September 19.
Two weeks before being shot, President Garfield is attributed with saying:"Whoever controls the volume of money in our country is absolute master of all industry and commerce...and when you realize that the entire system is very easily controlled, one way or another, by a few powerful men at the top, you will not have to be told how periods of inflation and depression originate."
Isn't it Interesting that possibly three assassination related to the FED?
Three measures that would establish an honest monetary system
Repay the Public Debt
The U.S. government must begin by first balancing the annual budget and then begin reducing the public debt. This would reduce the tax burden and ultimately allow tax dollars to be spent only on services requested by the people and not to banking agencies.
Introduce a Hard Currency
A hard currency should be introduced that competes against Federal Reserve Notes. Each of these bills would be backed by a defined quantity of a hard asset, such as gold, that are fully convertible at any time. Such a system could be comprised of bills representing a number of grams of gold.
There should be no legislation regarding the exchange ratios between gold and any other commodity or fiat currency. The free market should determine what the price of silver or Euros is in gold.
Borrowers and lenders should negotiate an interest rate on any lending arrangement using the hard currency. There should also be no law requiring that people must use this new currency. Legal tender laws are needed to make people accept a bad currency, not a good one.
This hard currency would require banks to store gold in their vaults. Any bank without gold would be unable to issue out the hard currency either in cash or as a loan.
In essence, the hard currency is a paper receipt convertible on a 1:1 exchange basis with gold. The gold is the money; the paper receipt is merely a representation of the physical metal.
Abolish Fractional Reserve Banking
The practice of fractional reserve banking should be criminalized, as is any other form of fraud. No business should be able to lay claim to assets they do not have, let alone lend out these assets and charge interest on them. This would eliminate the phenomena of bank-runs whereby panicked depositors line up to withdraw their assets for fear that the bank is insolvent. A bank should be able to lend out $10,000, only if it has $10,000 to begin with.
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