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Mayer Amschel Bauer Rothschild, founder
of the International Banking House of Rothschild said:
“Let
me issue and control a nation’s money and I care not who writes the
laws.”
The Rothschild brothers, already laying
the foundation for the Federal Reserve Act, wrote the following to New York
associates in 1863:
“The
few who understand the system will either be so interested in its profits or
be so dependent upon its favours that there will be
no opposition from that class, while on the other hand, the great body of
people, mentally incapable of comprehending the tremendous advantage that
capital derives from the system, will bear its burdens without complaint, and
perhaps without even suspecting that the system is inimical to their
interests.”
In 1906, Senator Nelson Aldrich –
known as the "General Manager of the Nation" because of his impact
on national politics and position on the Senate Finance Committee - sold his
interest in the Rhode Island street railway system to the New York, New Haven
and Hartford Railroad, whose president was J. P. Morgan's loyal ally, Charles
Sanger Mellen.
By 1906 the annual rate of US capital
formation was running at $5 billion. This rapid expansion went hand in hand
with the creation of enormous industrial and financial monopolies. By 1904,
more than 1,800 companies had been consolidated into 93 corporations, a
financial consolidation led by J Pierpont Morgan.
A few historians believe that J.P. Morgan
published rumors that the Knickerbocker Trust Company (in the ten years up to
1907, trust companies had increased three and a half times, to $1.4bn,
compared with state banks, which had doubled to $1.8bn. The Knickerbocker
Trust was the third largest Trust in New York with $65mn in deposits and
18,000 depositors - Robert F Bruner and Sean D Carr, The panic of
1907) was insolvent, the
widely spread rumors were followed by the *National Bank of Commerce
announcing it would stop accepting checks for the Trust Company which
triggered a run of depositors demanding their funds back – thus
precipitating the Panic of 1907.
* The National Bank of Commerce was the
principal correspondent bank for bank clearings in the area southwest of
Chicago and St. Louis. Because of this role, Commerce was at one point among
the 20 largest banks in the United States, as measured by assets. Wikipedia
The Knickerbocker’s collapse
caused banks and trust companies to hoard their funds. No loans were made,
stocks slumped to their lowest level since December 1900 (the stock market
fell 50%) and the crisis spread to the Trust Company of America.
In the Wednesday, October 23, edition of
the New York Times was a headline describing the Trust Company of America,
the second largest trust company in New York City, as the current "sore
point" in the panic. JP Morgan summoned the Secretary of the US
Treasury, George B Cortelyou, to New York. On being assured that the Trust
Company of America was solvent with Federal backing, JP Morgan gathered together
the presidents of all the key banks and organized an immediate $3 million
loan to Trust Company.
J Pierpont Morgan had made his
reputation and that of his bank. At this time Morgan started to slowly
disengage from the day to day activities of his firm preferring to
concentrate on his passion for touring Europe, collecting art and literature
and sitting on the boards of charitable organizations.
"All
this trouble could be averted if we appointed a committee of six or seven
public-spirited men like J.P. Morgan to handle the affairs of our
country."
Woodrow Wilson talking about The Troubles of 1907
The Panic of 1907 led to the passage of
the Aldrich–Vreeland Act in 1908, this act established the National
Monetary Commission - sponsored and headed by Senator Aldrich.
Aldrich also co-authored the
Payne-Aldrich Tariff Act of 1909 which removed restrictive import duties on
fine art. This enabled Americans to bring in very expensive European artworks
that became the foundation of many leading museums.
On the night of November 22, 1910 a
delegation of the nation’s leading financiers, led by Senator Nelson
Aldrich, left New Jersey for a very secret ten day meeting on Jekyll Island,
Georgia.
Aldrich had previously led the members
of the National Monetary Commission on a two year banking tour of Europe. He had yet to write a report regarding the trip, nor had he
yet offered any plans for banking reforms.
"Despite
my views about the value to society of greater publicity for the affairs of
corporations, there was an occasion near the close of 1910, when I was as
secretive, indeed, as furtive, as any conspirator. . . . Since it would have
been fatal to Senator Aldrich’s plan to have it known that he was
calling on anybody from Wall Street to help him in preparing his bill,
precautions were taken that would have delighted the heart of James Stillman.” Frank Vanderlip,
the Saturday Evening Post, February 9, 1935
Accompanying Senator Aldrich to Jekyll
Island were:
• Frank Vanderlip,
president of the National City Bank of New York, associated with the Rockefellers
• Henry P. Davison, senior partner
of J.P. Morgan Company, regarded as Morgan’s personal emissary
• Charles D. Norton, president of
the Morgan dominated First National Bank of New York
• Col. Edward House, who would
later become President Woodrow Wilson's closest adviser and founder of the
Council on Foreign Relations
• Benjamin Strong, a lieutenant of
J.P. Morgan
• Paul Warburg, a recent immigrant
from Germany who had joined the banking house of Kuhn, Loeb and Company, New
York directed the proceedings and wrote the primary features of what would be
called the Aldrich Plan. Warburg would later write that "The matter of a uniform discount rate (interest rate) was
discussed and settled at Jekyll Island"
After the Jekyll Island visit the
National Monetary Commission “wrote” the Aldrich Plan which
formed the basis for the Federal Reserve system.
"In
1912 the National Monetary Association, under the chairmanship of the late
Senator Nelson W. Aldrich, made a report and presented a vicious bill called
the National Reserve Association bill. This bill is usually spoken of as the
Aldrich bill. Senator Aldrich did not write the Aldrich bill. He was the
tool, if not the accomplice, of the European bankers who for nearly twenty
years had been scheming to set up a central bank in this Country and who in
1912 has spent and were continuing to spend vast sums of money to accomplish
their purpose."
Congressman Louis T. McFadden on the Federal Reserve Corporation: Remarks in
Congress, 1934
After several failed attempts to push
the Federal Reserve Act through Congress, a group of bankers funded and
staffed Woodrow Wilson's campaign for President. He had committed to sign a
slightly different version of the Federal Reserve Act than Aldrich’s
Plan.
In 1913, Senator Aldrich pushed the
Federal Reserve Act through Congress just before Christmas when much of
Congress was on vacation. When elected president Woodrow Wilson passed the
FED.
"Our
secret expedition to Jekyll Island was the occasion of the actual conception
of what eventually became the Federal Reserve System. The essential points of
the Aldrich Plan were all contained in the Federal Reserve Act as it was
passed."
Frank Vanderlip, autobiography, From Farmboy to Financier
"I
have unwittingly ruined my country.” Woodrow Wilson later said referring to
the FED
“We
have, in this country, one of the most corrupt institutions the world has
ever known. I refer to the Federal Reserve Board. This evil institution has
impoverished the people of the United States and has practically bankrupted
our government. It has done this through the corrupt practices of the moneyed
vultures who control it.” Congressman Louis T. McFadden in 1932
The Federal Reserve Bank (FED) is a
privately owned company that controls, and profits immensely by printing
money through the US Treasury and regulating its value.
“Some
[most] people think the Federal Reserve Banks are U.S. government
institutions. They are not … they are private credit monopolies which
prey upon the people of the U.S. for the benefit of themselves and their
foreign and domestic swindlers, and rich and predatory money lenders. The
sack of the United States by the Fed is the greatest crime in history. Every
effort has been made by the Fed to conceal its powers, but the truth is the
Fed has usurped the government. It controls everything here and it controls
all our foreign relations. It makes and breaks governments at will.” Congressional Record 12595-12603
— Louis T. McFadden, Chairman of the Committee on Banking and Currency
(12 years) June 10, 1932
“…
we conclude that the [Federal] Reserve Banks are not
federal … but are independent, privately owned and locally controlled
corporations … without day-to-day direction from the federal
government.”
9th Circuit Court in Lewis vs. United States, 680 F. 2d 1239 June 24, 1982
The FED began with approximately 300
people, or banks, that became owners (stockholders purchased stock at $100
per share) of the Federal Reserve Banking System. The Fed is privately owned
- 100% of its shareholders are private banks, the stock is not publicly
traded and none of its stock is owned by the US government.
The FED banking system collects billions
of dollars in interest annually and distributes the profits to its shareholders.
The US Congress gave the FED the right
to print money at no interest to the FED. The FED creates money from nothing,
loans it out through banks and charges interest. The FED also buys government
debt with money from nothing, and charges U.S. taxpayers
interest.
The interest on bonds acquired with its
newly-issued Federal Reserve Notes pays the Fed’s operating expenses
plus a guaranteed 6% return to its banker shareholders.
Reuters reported on October 3 2008:
"The
U.S. Federal Reserve gained a key tactical tool from the $700 billion
financial rescue package signed into law on Friday that will help it channel
funds into parched credit markets. Tucked into the 451-page bill is a
provision that lets the Fed pay interest on the reserves banks are required to
hold at the central bank."
So in addition to the FED’s banker
shareholders receiving a guaranteed 6%, banks also now get interest from the
taxpayers on their 10 percent "reserves."
The reserve requirement set by the
Federal Reserve is 10 percent – ie the ABC
Fractional Bank has a billion dollars stashed at the FED, that’s its
reserve and its paid interest on it. That billion
dollars can be fanned into ten times that sum in loans - $1,000,000,000 in
reserves becomes $10,000,000,000 in loans.
The absolute amount of bank loans and
leases outstanding was $6.80 trillion September 14, 2011. Ten percent of that
is $680 billion. US taxpayers will be paying interest to the banks on at
least $680 billion worth of reserves – so banks can accumulate interest
from borrowers on ten times that sum in loans.
The FED is the only for profit
corporation in America that is exempt from both federal and state taxes.
The FED's books are not open to the
public, nor Congress apparently:
A first ever GAO (Government Accountability
Office) semi-audit of the US Federal Reserve was recently carried out and a
report was issued in July of 2011. What the audit
revealed was incredible: between December 2007 and June 2010, the Federal
Reserve had secretly bailed out many of the world’s banks,
corporations, and governments by giving them…
US$16,000,000,000,000.00 – that’s 16 TRILLION dollars.
The GDP of the United States is $14.12
trillion, the entire national debt of the United States government spanning
its 200 plus year history is $14.5 trillion.
The GAO report also determined that the
Fed lacks a comprehensive system to deal with conflicts of interest:
• The CEO of JP Morgan Chase
served on the New York Fed's board of directors at the same time that his
bank received more than $390 billion in financial assistance from the Fed
• JP Morgan Chase served as one of
the clearing banks for the Fed's emergency lending programs
• On Sept. 19, 2008, William
Dudley - now the New York Fed president - was granted a conflict of interest
waiver to let him keep investments in AIG and General Electric at the same
time AIG and GE were given bailout funds.
• The Fed outsourced the
operations of their emergency lending programs to private contractors ie JP Morgan Chase, Morgan Stanley, and Wells Fargo.
These firms received trillions of dollars in Fed loans at near zero interest
rates
• Two-thirds of the contracts that
the Fed awarded to manage its emergency lending programs were no-bid
contracts
The IRS was restarted within months of
the FED's inception. The roots of the IRS go back to the Civil War when
President Lincoln and Congress, in 1862, created the position of commissioner
of Internal Revenue (The position of Commissioner exists today as the head of
the Internal Revenue Service) and enacted an income tax (the initial rate was
3% on income over $800, which exempted most wage-earners) to help pay war
expenses. In 1872, seven years after the war, lawmakers allowed the temporary
Civil War income tax to expire.
Congress enacted a flat rate Federal
income tax in 1894, but the Supreme Court ruled it unconstitutional the
following year because it was a direct tax not apportioned according to the
population of each state.
Senator Aldrich was instrumental in the
re-structuring of the American financial system through a federal income tax
amendment, the 16th - he had originally opposed an income tax as communistic
a decade before. The 16th Amendment gave Congress the authority to tax the
income of individuals without regard to the population of each State:
“The
Congress shall have power to lay and collect taxes on incomes, from whatever
source derived, without apportionment among the several States, and without
regard to any census or enumeration."
Conclusion
In 1906 David Graham Phillips wrote a series
of articles published in Cosmopolitan claiming that politicians were
receiving huge payments from large corporation to argue their case in the
Senate. Phillips claimed that the main figures in this
scandal was Aldrich and Arthur P. Gorman of Maryland.
David Graham Phillips was murdered on
23rd January, 1911. Two months later Aldrich resigned from Congress.
Sir Josiah Stamp, president of the
Rothschild Bank of England and the second richest man in Britain in the
1920s, said the following in 1927 at the University of Texas:
“The
modern banking system manufactures money out of nothing. The process is
perhaps the most astounding piece of sleight of hand that was ever invented.
Banking was conceived in inequity and born in sin. Bankers own the Earth. Take
it away from them but leave them the power to create money, and with a flick
of a pen, they will create enough money to buy it back again. Take this great
power away from them and all great fortunes like mine will disappear, for
then this would be a better and happier world to live in. But if you want to
continue to be the slaves of bankers and pay the cost of your own slavery,
then let bankers continue to create money and control credit.”
The Federal Reserve was conceived and
given birth by an unholy alliance of American and British bankers. The FED
buys U.S. debt with money printed from nothing, then charges U.S. taxpayers interest. The US government pushed through the
federal income tax amendment, restarted an income tax on Americans to pay the
interest to the FED and reorganized the IRS to collect the monies – the
interest - “owed” to the FED from its citizens.
Since the Fed’s creation in 1913
the dollar has lost more than 96% of its value.
Undoubtedly the greatest achievement of
the FED has been to transform America from being the world’s foremost
creditor nation to the world’s largest debtor nation.
Aldrich’s motto, when questioned
about his activities and the reasoning behind them, was to "Admit
nothing. Explain nothing."
"Let
me issue and control a nation’s money and I care not who writes the
laws.”
should be on every thinking person’s radar screen. Is it on yours?
If not, maybe it should be.
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