In Part 1 I mentioned the efforts of President Jackson to prevent banking monopolies in the country, and I also mentioned the name Rothschild as the name of a big money family who knew how to take control of a country by controlling its currency.
Remember that Rothschild said "Give me control over a nation's currency and I care not who makes its laws." That’s surprisingly like another dictator who said “ I don’t care who casts the votes. I only care who counts them.” That was Joseph Stalin enunciating another lesson learned by despots everywhere. They at least do seem to learn something from history; tactics.
It was the Rothschilds who tried to install a private central bank in this country. It was to be named Bank of the United States, for the usual reasons. The attempt was thwarted by President Jackson and he used these words:
But as I also said, they never rest. And in 1902 an expert in the European system of central banking came to this country. He was a friend of the Rothschild family, several of whom owned or controlled banks. He became a partner in Kuhn, Loeb and Company.
One of the founders of this famous company was Solomon Loeb. Paul Warburg cemented his relationship to the company and its money by marrying Solomon’s daughter. The actual head of the company was Jacob Schiff. He is famous in history for giving $20 million in gold, (not paper), to the communists in 1917, and has been credited with saving their revolution.
This is a little reminiscent of the way grandfather Bush financed the Hitler movement in Germany, and became called Hitler’s Angel. But that’s more history, and we have to look forward don’t we. Bankers love dictators for the conformity and predictability they represent. Not to mention the fact that they often decimate or supress the intellectuals and their dangerous habit of thinking.
J.P.Morgan used his enormous wealth to create a money panic in 1907 to force government action about the country’s finances. That’s a separate story. But in 1908 a National Monetary Committee was established by Congress to waste time until the real plan could be put into action.
Meanwhile a small island off the coast of Georgia had been prepared for several years as a base for the chicanery about to come. These people must be given credit for long range planning. Their goals are always much further in the distance than the four year maximum of politicians. Some of their plans took generations to bring about.
This one started when the little island of Jekyll, just off the coast of Georgia, was bought by a special group of millionaires. Islands are always good bases for dark deeds. The Master of the Templars was executed on an island in the Seine to prevent the populace from interfering. The US government has used them, and maybe still uses them for germ warfare experiments. By 1900 Jekyll had become the site of one of the world’s most exclusive clubs for multi millionaires and financiers. At that time the net worth of the members was about 1/6th of the wealth of the entire world.
Americans will recognize some of the members, with names like Morgan, of course, Vanderbilt, Astor etc. It didn’t matter what other kind of status you had in the world, only financial giants could be members. President McKinley was denied membership. So was Winston Churchill.
In 1910 the plan was put into operation and another group was formed consisting of the heads of major corporations and big banks in this country. This group left secretly by rail from Hoboken, New Jersey, and traveled anonymously to the exclusive hunting lodge on Jekyll Island.
Why the secrecy? Well, the Senator who was going to introduce a bill about financial control was Senator Aldrich. It would have been fatal to his plan had it been made public at the time that he was taking advice from bankers and Wall Street magnates. The same kind of secrecy is the reason that nobody yet knows who was in the group that Bush’s government brought together to create the Energy policy. Tactics.
At Jekyll Island, the man who drafted the plan that produced the Federal Reserve was the afore mentioned Paul Warburg, up to his ears in national and international finance. The negotiations took nine days. They thought it through. The new central bank had to be given a name that made it sound like a governmental body. So it was called the Federal Reserve. It had to appear to be controlled by Congress, but actually the majority of its members were selected by the stockholders, who just happened to be private banks.
To further the fiction of government control a system of twelve regional banks was created. You can see their names on the Federal Reserve notes that you use as money. Because New York was the financial centre of the country the Federal Reserve bank of New York was said to be in charge. That was another deception.
The board and chairman of the Federal Reserve were to be selected by the President, but the terms of their tenure in the words of Colonel Edward House, would "put them out of the power of the President." Colonel was his Texas nickname, not a rank. He was the closest confidant of Woodrow Wilson. The aim of the plot was the ancient one. The power over the creation of money was to be taken from the elected representatives of the people and placed in the hands of private bankers who could expand or contract credit as they felt it best suited their needs. The Fed controls the banking system in the USA, not the Congress nor the people. The strategy of the U.S. central bank is a result of European banking interests, based on the original idea that started the Bank of England.
Let’s just look at that original Constitutional directive that only Congress is allowed to authorize the creation of money. It sounds democratic, but actually it was the first step towards the control that the Federal Reserve now has. Financiers have longer term goals than politicians. This law of the land is Article 1, Section 8 of the Constitution. It states that Congress shall have the power to coin (create) money and regulate the value thereof. This was passed to eventually destroy the power of legitimate private banks and mints that issued their own money, based on owned precious metals. It took a while. The government for a time even competed with the private mints, but eventually only the government was allowed to give the name 'money to the stuff they made.
As late as 1935, the US Supreme Court ruled that the Congress under this law cannot constitutionally delegate its power to another group or body. So, when the Federal Reserve came into being it was an unconstitutional action by Congress. This is still the fly in their ointment that may be eventually used against them.
But had the Congress acted responsibly, the Act that created the Federal Reserve would never have passed. The legislation establishing it was so obviously against the interest of the public and of the country that it had to be passed by trickery. Another tactical example to despots in charge of nominal democracies or republics.
A Congressional Conference Committee meeting was surreptitiously scheduled for between 1:30 - 4:30 AM on December 22, 1913. How many of you are awake between those times. Jackson would have been. A great many members had already left on their Christmas vacation. The Act was then voted on the next day and passed, although it is obvious that those present had not had time to read it or to be familiar with its contents.
Remember the 700+ pages of the Patriot Act? Sound familiar? Nobody read that. It was passed by people who may as well have been blind for all they knew that was in the Act. Tactics.
Still the 1913 bill passed and was signed into law by Woodrow Wilson who later admitted he made a terrible mistake saying "I unwittingly ruined my country." Maybe the advice of Colonel House helped him to do that.
His apology hasn’t altered anything. The damage was done. And today most of the public are unaware that their Congress acted unconstitutionally in giving the control of the finances of this country into the hands of a private, in business for profit, cartel of bankers, whose only interest is in making a profit for themselves and their shareholders.
Well, what have they done that makes that a bad thing? Maybe professional bankers are the people who should be in charge of the money. Remember Jefferson, Madison, Jackson and Lincoln. They had good reason to believe otherwise. The totally ruinous situation in the current financial situation in the country is based on a very simple matter, that only the clever and shrewd, not to say unethical, could have planned. Strategy.
As soon as the Fed had actual control of how much money could be printed the next step was taken. In 1917, it set the minimum reserves that a member bank had to keep on deposit with the central bank at 10 percent. That 10 percent was retained by the Federal Reserve in gold, we were still on the gold standard, but the reserve ratio meant that banks could loan out ten times as much in paper money as they actually had on deposit in gold.
So, 100-10=90. Sorry to insert such a difficult piece of mathematics. This means that 90% of the money loaned out by the member banks had no backing in gold. In effect the gold receipts they gave were counterfeit, and the process was a con. The Federal Reserve gold receipts were meant to be just receipts for gold actually owned by other people. For a short time to come people could take their receipts to a bank and get gold for them. A dollar is actually the technical term, or was then, for one twentieth of an ounce of gold.
The government allowed the Feds to print these bits of paper, 90% which were worthless, and persuaded people that these bits of paper were money. 'The gold was obviously safer in a bank and your receipt would always be honoured,' was the tenor of the argument. Of course people began to believe this and used the notes as if they were money. This was the first big step towards the ultimate aim. Paper money under the control of private bankers who could print as much as they wanted as a monopoly, and use it as real, while keeping gold under their own control.
Then in the early 1930s the American government abandoned the gold standard. Gold receipts, called dollars could no longer be redeemed for gold. In addition, the Fed presses stopped printing gold receipts altogether and replaced them with “Federal Reserve notes.”
Then the government passed another law stating that the Federal Reserve notes were legal tender to be used in all transactions. As soon as that happened the price of gold in international markets took off upwards. The public now had no way of judging the value of their money. The financial experts knew that precious metals were what counted, not how many pieces of paper you had, and what was printed on them. So the price of gold went up.
But that wasn’t all. After 150 years of chicanery the government (actually the Fed) now had control over printing all the money in the country and possessed all the gold in the country. Almost at once the government devalued the value of American currency by around 40%. People who had loaned money to America were now only going to get 60% of the original value of their money back. Those foreigners who had done that were still able to get 60% of their debts repaid in gold. So the government used the people’s now more valuable gold to pay off the debts incurred by the government, smoke screened by the Fed. If I stole your gold jewelry and used it to pay my debts you would call it theft, and you’d be right. When the government does it the result is spun as fiscal responsibility, or ingenuity.
Foreign governments began to call in their debts. Eventually the game was over and that outstandingly honest and ethical President Nixon, on August 15, 1971, finally announced that America would no longer pay its debts in gold. Since then, America has been run 100% on paper and electronic money under the total control of a private banking cartel run for profit. Whenever a member of the cartel gets into trouble it is bailed out with money from the government, i.e. your tax money. When banks fail, as so many did in 1980, it is your money that bails out the incompetent big business people. If a big American auto company starts to wobble, its buddies in the Fed bail it out. The free market system cannot be followed under these circumstances. Incompetent companies will survive if they are friends of the money printers.
The Federal Reserve bank is one of many international banks that work with each other to benefit each other. That was the ultimate aim of the Jekyll island group. By controlling international currency they can control governments and the people under those governments. And they do. There is a major Swiss bank that acts as a clearing house for all the others. But all the banks work only to raise profits for themselves and the cartel. And now they don’t even have to print the money. They can make previously arranged electronic deposits to anybody. The shareholders of those banks, which are often other banks, ALWAYS get their annual interest. And it is your tax money that pays for it.
People believe the nonsense that high prices cause inflation, or that paying workers what they deserve causes inflation. The only real cause of inflation is printing money that has no backing in anything considered valuable by the rest of the world. The government uses the customer price index to snow the public. John Doe and Jane Doe think that when the price of everything is going up that inflation is the cause. It isn’t. It’s the result of printing too much money.
For an amazingly clear, pragmatic and totally realistic appraisal of such matters look up Robert Ringer on the Web and read his first rate, amazingly lucid explanations of the financial chicanery of the government. His opinions don’t always coincide with mine, I’m not recommending a more famous Douglas clone, but there is never any doubt as to the meaning of his words. He is a man who has had his books on the top of the best seller lists at least three times, and as he published them himself, it is clear he knows the financial world better than most.
The customer price index is about as realistic as the BMI tables. I’ve written about those. People like our current governor of California, who won the Mr. Universe title five times would come out as obese for each title, using those tables. Several top class athletes and movie stars with fine physiques would be obese or overweight according to those tables. The reason is that a given volume of muscle weighs much more than the same volume of fat. But the stupid tables make no distinction between muscle and fat. They use just weight and height.
So, those tables are pretty useless, though lazy professionals and the uninformed public use them to control or predict. The consumer index is just as ridiculous. For example: U.S. citizens go on vacations abroad. None of their expenditure is analyzed. Visitors from abroad come here. Their expenditures don’t count. Many rural communities are left out entirely. The very rich and the very poor are left out. Black market, drugs and prostitution money are all left out and so are savings and investments, and many other categories.
As a realistic index it is useless. But it’s a great propaganda tool. Someone does a lot of statistics and comes up with a pretty graph and a number like 3.07 or a rise of 1.69% and the mathematically challenged roll over and surrender without further thought.
When prices go up it’s because more money is in circulation and the purchasing value of each unit of it has become less. It’s like the man who got permission from God to take his valuable gold with him to heaven when he died. St. Peter looked in the suitcase he was carrying and said, “Paving stones! Why take all that trouble to bring paving stones here?”
Wealth is what you can buy with the money. It isn’t the money. The Fed could flood every mail box in the country with money. All that would happen is that you would have to use more money that month to buy the same stuff you bought last month for less. The rules of supply and demand apply to money too. The more there is of it the cheaper it has become. As prices go up the consumer price index would go up and the government would blame rising prices on inflation to cover the real cause. And the public usually buy that particular scam. Inflation is the result, not the cause.
I remember when I was younger, how the German housewives used to take a whole basketful of banknotes to the baker to get one loaf. I had several one million mark notes in my little foreign money collection. That’s inflation! And it could happen here for the same reason. And Fox News would blame it on some group that the government wanted to persecute. And the non-readers would believe them as usual.
Look at the names of big bankers I mentioned. Rothschild, Solomon, Jacob. That’s how Hitler chose that particular group so that he could unite the country in hatred against the Jews. Any enemy will do. It is a political axiom that if the leader can produce an enemy he or she can unite the country. It’s been done here quite often. As a selection from many, try the British, the Rebels, the Huns, the Communists, the Anthrax, and now the most ridiculous, the Terror, as if anyone can fight an emotion with guns. Anyone who dissents will be called a supporter of the enemy, as if there are always only two choices. If there is a next time you may find yourself in the selected enemy group, whatever or whoever it is, with similar results. Anyone will do.
Presidents know about the fact that borrowing all the money they need from the Fed, at interest is the road to financial disaster. Having the government print its own money, as the Constitution directs would cause no debt. So why don’t they do something about it?
Lincoln did, and by a coincidence that always seems to occur when people buck the bankers, he was assassinated. Jackson’s career was very adversely affected by his action against the Second Bank, and his attitude about bankers.
Another President tried around 45 years ago. John Kennedy planned to end the Federal Reserve System to eliminate the national debt any central bank creates by printing money and loaning it to the government. That debt is currently in the trillions as we all know, and now you know why. The interest on that debt is now approaching a trillion dollars every year. This totally unearned money makes the bankers richer and the public poorer.
They can print the money at essentially zero cost and cash in by lending it to the government at interest, or play with it electronically. And the whole system that brought this about is illegal. It’s a black suit, white collar scam. And every president knows it. Reagan and Bush befriended the bankers of course, birds of a feather, and ensured that legislation was passed to help them increase their take and their power.
But on June 4, 1963, the bold President Kennedy decided to do something about the source of the national debt. He issued presidential order EO 11110 giving the president authority to issue currency. He then ordered the US Treasury to print over $4 billion worth of "United States Notes" to replace Federal Reserve Notes.
It was his intention to replace all the Fed notes when enough of the new currency was in circulation. That action would end the stranglehold the Fed and the international banking cartel had on the American government and people. The United States Notes would incur no debt and no interest.
By one of those afore mentioned coincidences that occur when international banking is threatened, Kennedy was assassinated before he could put this order into effect. Possibly to ensure his own safety, or as some think, to repay the debt of his sudden promotion, Lyndon Johnson rescinded that order soon after he took office and restored the power of the Fed. It may then have something to do with both Kennedy’s assassination and also with the advent and survival of Johnson. Stranger things have happened in politics. The banking cartel is now more powerful than ever, and maybe presidents are now among the few people who are learning one pro-survival lesson from history… don’t mess with the Fed.
So, is there any way out. Well yes there is, but it won’t happen if the whole damned country sits in front of their TV sets watching Fox News acting as a megaphone for the administration, or searching the Web for the latest dirt on various celebrities, whom they don’t know and have never met. Someone said to me the other day, “It’s the old Roman circus game to keep the people happy.” My reply was “Yes, I agree. But at least the Roman public had to get off their arses and walk to the Coliseum. The current crop has the Coliseum brought to them.”
The Act that created the Fed is unconstitutional. Congress acted illegally in allowing it to happen, and betrayed the American public. Something has already been done about that by the Supreme Court. But the public, as usual don’t know about it. There was no nudity involved so it wasn’t newsworthy. And some Supreme Court members are apparently blocking knowledge of what was done from becoming widely known by the public. If enough of the public did know about it maybe action could be taken, even in this government’s lifetime. More about that next time. Then back to woojie stuff as the clever people call it.
By the way. You can go to Jekyll Island now, even if you are a mere smear tourist. The cottages the rich built are still there. The Club House Hotel has rooms named after the Federal Reserve, and the island is proud of its historical association with the Feds. Sometimes it is spelled Jeckyll. I’d hate you to miss your trip because different people spell it differently. Robert Louis Stevenson used Jekyll in his classic horror story, so that’s the spelling I prefer.
For homework look up: Robert Ringer, Jekyll Island, Federal Reserve, Consumer price index, on the Web. You may have an interesting and informative time, and you’ll be able to see through the smoke and mirrors much more easily.