Abolish the Federal Reserve System,

Treasury Bills, Notes, Bonds,

And the National Debt

By Mike Kirchubel

"We have come to be one of the worst ruled, one of the most completely controlled
governments in the civilized world - no longer a government of free opinion, no
longer a government by... a vote of the majority, but a government by the opinion
and duress of a small group of dominant men.” - President Woodrow Wilson

"From the Great Depression, to the stagflation of the seventies, to the burst of the
dotcom bubble in 2001, every economic downturn suffered by the country over the
last 80 years can be traced to Federal Reserve policy." - U. S. Rep., Ron Paul

“The Federal Reserve System is the biggest fraud ever foisted upon the American
public. This private enterprise controls our politicians, our major media, sucks
hundreds of billions of dollars from the pockets of U.S. taxpayers every year, has
caused incalculable suffering, thousands of deaths, and yes Virginia, it is a
conspiracy. It was born of conspiracy and continues today in secrecy.” – Mike
Kirchubel, blogger.

"One of the things important about history is to remember the true history."
-George W. Bush, Washington, D.C., June 6, 2008

This report could easily be several hundred pages long. It covers ground from 1700 to
tomorrow. The hardest part of writing it was to distill the vast amount of information
available to a size readable at one sitting. If you dare continue, you will learn that,
beyond the blatant theft outlined in current headlines, international bankers have
conspired to steal our money and property for hundreds of years. Today, without your
knowledge, we exist as sharecroppers, toiling in their fields, sending them a significant
portion of our income every year. You will soon come to know that, more than Congress
or the President, the private corporation known as the Federal Reserve, shrouded in
secrecy, controls our daily existence and the destiny of our children.

As money and its pursuit seem to occupy more and more of our lives, we seem to fall
further and further behind. Americans work more hours and pay more for healthcare than
any other industrialized nation. Yet typically, we Americans are one car wreck, one
hospital stay from the total collapse of our financial house of cards. We are now
witnessing this car wreck on a national scale. We no longer live in the world of our
parents, with leisure time and where only one parent works – unless the other one was

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just laid off. Occasionally, rarely, one of us escapes our seemingly pre-ordained fate and,
just like the variable reinforcement strategies practiced in casinos, inspires the rest to
continue plugging along. Stable jobs and stable currency are curiosities found only in
history books. Turmoil and inflation are as natural to us as sunrise and sunset. We
perceive financial chaos as “normal” and no longer question our government when they
say we must pay two trillion dollars to rich bankers, or $10 billion a month for war
without end, or that Rumsfeld misplaced $2.3 trillion on the day before 9/11.

“Just let me have my toaster, my TV, and my steel-belted radials and leave me
alone,” to quote Howard Beale from, “Network.” Your TV may let your mind slumber,
but I will not. If you dare proceed, your next few minutes of reading will very likely
enrage you because, as Gloria Steinem aptly stated, “The truth will set you free, but
first it will piss you off.”

This is not your usual blog. The information presented consists of historical facts,
documented by quotations from noted individuals of each era. Consider them
eyewitnesses in the conspiracy trial of the Federal Reserve. Weigh the evidence and
judge for yourself. I figured you would sooner believe the people who actually
participated in the events discussed than the random rants of this writer. These are not the
facts we were taught in our public schools, but they are facts, nonetheless. History is
written by the winners and as you will soon understand, these winners do NOT want you
to know their history. “He, who controls the present, controls the past. He, who
controls the past, controls the future.” - George Orwell, 1984. Google everything. The
truth is out there.

America’s Hidden History

Amazingly, international bankers started screwing with us Americans in the 1700’s! By
the mid 1700s, the American Colonies were doing well, there was no income tax, no
unemployment, and prices were generally stable. Benjamin Franklin wrote, “There was
abundance in the Colonies, and peace was reigning on every border. It was difficult,
and even impossible, to find a happier and more prosperous nation on all the
surface of the globe. Comfort was prevailing in every home. The people, in general,
kept the highest moral standards, and education was widely spread.”

When Franklin went to London in 1763, he saw a completely different situation. “The
streets are covered with beggars and tramps,” he wrote. He asked his friends how
England, with all its wealth, could have so much poverty among its working classes.

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They replied that England had too many workers! The well-to-do were already
overburdened with taxes, and could not pay more to relieve the poverty of the
unemployed workers. Members of the British Board of Trade asked Franklin how the
American Colonies managed to collect enough money to support their poor and Franklin
replied, “That is simple. In the Colonies, we issue our own money. It is called
Colonial Scrip. We issue it in proper proportion to the demands of trade and
industry to make the products pass easily from the producers to the consumers. In
this manner, creating for ourselves our own paper money, we control its purchasing
power, and we have no interest to pay to no one."

The Bank of England, realizing the Colonial Scrip was cutting into their profits, pressed
Parliament for the passage of the Currency Act of 1764. This act forced the Colonies to
use only British money and to pay taxes in only gold or silver. This put the Colonies
under the control of the British Central Bank. With the loss of Colonial Scrip, an
economic depression set in. "The colonies suffered a constant shortage of currency
with which to conduct trade. There were no gold or silver mines and currency could
only be obtained through trade as regulated by Great Britain." When the money
supply is cut, recession and depression invariably result. Remember this; you will see it
again and again.

Franklin reported that one year after the implementation of the Currency Act; the streets
of the Colonies were filled with unemployed beggars, just like in England. The amount of
circulating money had been cut in half. Franklin stated that the Currency Act was the
true cause of the American Revolution - and not the tax on tea or the Stamp Act, as we
were taught in our history books. Franklin wrote, “The colonies would gladly have
borne the little tax on tea and other matters had it not been that England took away
from the colonies their money, which created unemployment and dissatisfaction.
The inability of colonists to get power to issue their own money permanently out of
the hands of George III and the international bankers was the prime reason for the
Revolutionary War.”

After the Revolutionary War, there was a push to establish a central bank in the United
States. Thomas Jefferson argued against the institution of the bank, mostly citing
constitutional concerns on the limitations of government. "I consider the foundation of
the Constitution as laid on this ground that: "All powers not delegated to the United
States by the Constitution, nor prohibited by it to the states, are preserved to the
states or to the people. " ... To take a single step beyond the boundaries thus
specially drawn around the powers of Congress is to take possession of a boundless
field of power, no longer susceptible of any definition. The incorporation of a bank,
and the powers assumed by this bill (chartering the first Bank of the United States),

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have not, been delegated to the United States by the Constitution." - Thomas
Jefferson (1791) Jefferson, having helped to write the Constitution, was obviously correct
in its interpretation. Now, the Supreme Court tries to guess what the writers meant;
Jefferson is actually telling us what HE meant: The central bank is unconstitutional.

"If the American people ever allow private banks to control the issue of their
currency first by inflation and then by deflation, the banks and corporations that
will grow up around them will deprive the people of all property until their children
will wake up homeless on the continent their fathers conquered". -Thomas Jefferson
1802. Remember that line, “first by inflation and then by deflation ... the banks will
deprive the people of all property...” As we shall see, Thomas Jefferson was exactly
right. The banks use this strategy repeatedly throughout history, each time gaining a
bigger and bigger piece of the economic pie. First, they make money plentiful and
inexpensive so that people expand their business and buy farms and homes. Then, they
raise interest rates and contract the money supply, forcing bankruptcies and foreclosures,
obtaining properties at a fraction of their original cost. What do you think is happening
right now?

Our nation started its existence in debt from the Revolutionary War. Jefferson argued to
eliminate the debt, and Hamilton argued debt was necessary to keep the nation together.
The Hamiltonians, the conservatives of their time, won and consequently it has been
argued that this basic difference between these two founders was the beginning of the
liberal vs. conservative split in our country. It’s interesting to note that the ones who
wanted the debt were the “conservatives.” Contrary to popular opinion, (and remember
that you read it here first) – even today, those “Borrow and Spend” Republican
administrations are responsible for almost ALL of our $11 trillion national debt. Contrast
that to the “Tax and Spend” or, should I say, “pay as you go” Democrats! Yes, it’s true.
From the founding of our country up through the Carter administration, our U.S. National
Debt was about one trillion dollars. That’s right, after two hundred years of history,
including the Revolutionary War, the Civil War, two World Wars, the Korean War, and the
Vietnam debacle, our national debt was $1 trillion. Let’s blame Democrat Jimmy Carter
for the whole thing, $1 trillion. After 8 years of Republican Reagan, the debt stood at $3
trillion. 4 years of Republican George H.W. Bush got it to $5 trillion. 8 years of
Democrat Clinton raised it another $1trillion to $6 trillion. Finally, after 8 years of
Republican Bush II, we owe an additional $5 trillion dollars. Right now, we are looking
at $11 trillion in debt and we taxpayers are paying about $500 billion in interest every
year. You tell me who the “conservative” is. Hey, DON’T believe me. Google it. “No
generation has a right to contract debts greater than can be paid off during the
course of its own existence." - George Washington to James Madison 1789. Good idea,
by George.

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After much argument, Congress passed a bill proposed by Treasury Secretary Alexander
Hamilton. This bill established the First Bank of the United States, tenured by a charter of
20 years, and set to expire in 1811.

Despite objections from several of our founding fathers, the "First Bank of the United
States" was chartered for $10 million, mainly to “effectively distribute the cost of the
revolution proportionately throughout all of the states.” The U.S. government
chipped-in $2 million to start up the bank and the charter bankers, who were supposed to
put up an additional $8 million, simply used the magic of fractional reserve lending and
had their new bank loan themselves their startup money. They actually used none of their
own funds and ended up with control of our nation’s finances. Bankers are just so darn
clever.

Over the first 5 years, the government borrowed $8.2 million of newly issued money and
prices rose by 72%. Jefferson, commenting on this inflation wrote, “I wish it were
possible to obtain a single amendment to our Constitution – taking from the federal
government their power of borrowing.” "History records that the money changers
have used every form of abuse, intrigue, deceit, and violent means possible to
maintain their control over governments by controlling money and its issuance." -
James Madison

In 1811, bill was put forth in Congress to renew the Banks charter. The Legislators of
Pennsylvania and Virginia passed Resolutions asking Congress to veto the bill. Their
chief complaint was that 70 percent of the bank's stock was held by foreign (British)
interests, which would have sent millions of dollars annually to England had the charter
been renewed. English Banker, Nathan Rothschild made the following revealing
statement, “Either the application for renewal of the charter is granted, or the United
States will find itself involved in a most disastrous war.” The renewal bill passed by a
single vote in the House and was deadlocked in the Senate. President James Madison, a
staunch opponent of the bank, sent Vice-President, George Clinton (No, not the
Funkadelic guy) to break a tie in the Senate and killed the bank. As promised by Nathan
Rothschild, thousands died when the British attacked America in the War of 1812.
Fortunately, the British were still busy fighting Napoleon and were unable to mount much
of an assault. After burning Washington D.C. in 1814, the British went home.

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So, who was this Nathan Rothschild that he would have both the temerity to threaten the
United States of America and then have the clout to carry out that threat? We need to
take a short side trip to mid 1700s Frankfurt, Germany. In that city lived a gold merchant
named Mayer Amschel Bauer who had a large red shield on the front of his shop. His
customers started calling him “Rothschild,” German for “Red Shield,” and the name
stuck. In those days, names were not so “fixed” as they are now. People often took the
name of their business as a family name; hence, we have a lot of Smiths, Bakers, Clarks,
Millers, Coopers, Farmers, Fletchers, Wagners, etc. running around today. So it was with
the Rothschilds. Mayer had five sons and he gave them all substantial sums of money
with which to start their adult lives. They all entered the banking field and soon ran the
central banks in Germany, Austria, Italy, France, and England. Nathan eventually gained
controlling interest in the Bank of England. Benjamin Disraeli, Prime Minister of
England, wrote of Nathan Rothschild: “He is the lord and master of the money
markets of the world, and of course virtually lord and master of everything else.”
William Gladstone, Prime Minister of England stated in 1852, “From the time I took
office as Chancellor of the Exchequer, I began to learn that the State held, in the
face of the Bank and the City, an essentially false position as to finance. The
Government itself was not to be a substantive power, but was to leave the Money
Power supreme and unquestioned." Two Prime Ministers acknowledge the Bank of
England – Nathan Rothschild – as the supreme power in England. In 1790, Mayer
Amschel Rothschild wrote, “Permit me to issue and control the money of a nation
and I care not who makes its laws.” Son, Nathan Rothschild wrote: "I care not what
puppet is placed on the throne of England to rule the Empire. The man who controls
Britain's money supply controls the British Empire and I control the British money
supply." How sweet. Like father, like son.

Mayer Bauer (Rothschild) and family shared a house with another banking family in
Frankfurt, their close friends, the Schiffs. The Schiffs had three sons and they too all
entered the banking field. Two brothers stayed in Germany and one, Jacob Schiff came
to the U.S. to seek fame and fortune. A full explanation of the Rothschilds would require
another 50 pages and will have to wait for another day. Jacob Schiff will pop up a little
later in this story.

The charter for a new central bank, The Second Bank of the United States, was passed in
1816, five years after the first bank expired. Although an avowed enemy of central
banking, President Madison needed a way to stabilize the currency. Unfortunately, some
very bad bankers looted the Baltimore branch of the Second Bank. The branch went into
receivership and the whole central banking system was close to bankruptcy. The Second
Bank was forced to reduce the number of notes and loans issued to save it from collapse.
The monetary contraction was referred to as “The Panic of 1819” and the resultant
depression lasted five years.

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In 1832, Andrew Jackson, running for a second term, took his campaign on the road
talking directly to the American people about the central bank scam. "It is not our own
citizens only who are to receive the bounty of our government. More than 8 Million
(shares of) the stock of this bank are held by foreigners... Is there no danger to our
liberty and independence in a bank that in its nature has so little to bond it to our
country? Controlling our currencies, receiving our public moneys, and holding
thousands of our citizens in dependence ... would be more formidable and dangerous
than a military power of the enemy. If government would confine itself to equal
protection, and, as Heaven does it's rains, shower it's favor alike on the high and the
low, the rich and the poor, it would be an unqualified blessing. In the act before me
there seems to be a wide and unnecessary departure from these just principles." –
President Andrew Jackson. The foreign banker controlling the Second Bank of the
United States was Baron James de Rothschild of Paris.

Old Hickory’s campaign slogan was short and to the point: "JACKSON and NO
BANK!" In 1832, Jackson ordered the withdrawal of government deposits from the
Second Bank and vetoed its early re-chartering. Banker Henry Clews, in his book,
Twenty-eight Years in Wall Street (1888), wrote that not only did President Jackson
withdraw government funds from the Second Bank of the United States, but he deposited
these funds, about $10 million, into state banks. The result was that the country began to
enjoy great prosperity. This sudden flow of cash caused an immediate expansion of the
national economy, and the government paid off the entire national debt. Jackson told the
central bankers: “Gentlemen, I have had men watching you for a long time and I am
convinced that you have used the funds of the bank to speculate in the breadstuffs of
the country. When you won, you divided the profits amongst you, and when you lost,
you charged it to the bank. You tell me that if I take the deposits from the bank and
annul its charter I shall ruin ten thousand families. That may be true, gentlemen,
but that is your sin! Should I let you go on you will ruin fifty thousand families, and
that would be my sin! You are a den of vipers and thieves. I have determined to rout
you out, and by the Eternal God, I will rout you out!” Does this remind you of our
current financial situation – except, of course, for the words and deeds of our president?

The president of the Second Bank, Nicholas Biddle, was quite candid about the power
and intention of the bank when he openly threatened to cause a depression if the bank
was not re-chartered. "This worthy President thinks that because he has scalped
Indians and imprisoned judges, he is to have his way with the bank. He is
mistaken." - "Nothing but widespread suffering will produce any effect on
Congress... Our only safety is in pursuing a steady course of firm restriction - and I
have no doubt that such a course will ultimately lead to restoration of the currency
and the re-charter of the bank." - Nicholas Biddle 1836. That’s right. By calling in

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existing loans and refusing to issue new loans a monetary collapse ensued and then a
massive depression with bankruptcies, foreclosures, and rampant unemployment. Of
course, Biddle blamed everything on Jackson. Congress, in what was called the “Panic”
session, officially “censured” Jackson. However, Biddle, boasting in public about
creating the depression, had been overheard by reporters. Soon the tide of public opinion
turned. Jackson was reelected and, in 1836 when its charter ran out, the Second Bank
ceased to function.

Henry Clews wrote in Twenty-Eight Years in Wall Street, "The Panic of 1837 was
aggravated by the Bank of England when it in one day threw out all the paper
connected with the United States.” The Bank of England is of course, Nathan Mayer
Rothschild. Why did he "throw out" all paper connected with the United States, that is,
refuse to accept any securities, bonds or other financial paper based in the United States?
Acting in concert with his American agent, Biddle, he wanted to create a contraction of
credit to depress the U.S. economy and force the continuation of “his family’s” Second
Bank of the United States. The House of Representatives tried to investigate the cause of
the depression and subpoenaed Nicholas Biddle. Biddle stonewalled them, denied them
information concerning bribe money given to congressmen prior to the re-charter vote,
and refused to testify before the committee. Biddle died shortly thereafter, taking his
secrets to the grave.

On January 8, 1835, Jackson paid off the national debt, the only president to do so. "If
the American people only understood the rank injustice of our money and banking
system - there would be a revolution before morning..." Andrew Jackson. When
asked what he felt was the greatest achievement of his career Jackson replied, "I killed
the bank!" If Jackson were alive today and knew his face was prominently displayed on
our current central bank’s $20 Federal Reserve Note, he would no doubt say, “Hey, I’m
alive! Let me out of this box!” (Sorry)

The Civil War

According to one conspiracy theorist, "The division of the United States into
federations of equal force was decided long before the Civil War by the high
financial powers of Europe. These bankers were afraid that the US, if they remained
as one block, and as one nation, would attain economic and financial independence,
which would upset their financial domination over the world." - Otto von Bismarck,
Chancellor of Germany – 1876. “Propaganda pushed the issue of slavery to the fore
but the actual purpose behind the war...was to drive both sides to accept the same
money system Rothschild had fastened on England and the Continent...to bleed the

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vast productivity of the whole American People.” - William G. Simpson, “Which Way
Western Man.”

At the onset of the Civil War, Lincoln, realizing he needed money to finance the war,
went with his Secretary of the Treasury, Salmon P. Chase, to New York City. There, the
patriotic bankers offered loans at 24% to 36% interest per year. Lincoln politely declined
their generous offer and decided instead to have the treasury create its own money (as
authorized by the Constitution.) The U.S. Treasury printed 450 million dollars worth of
the new bills using green ink on the back (hence, “greenbacks.”) "The government
should create issue and circulate all the currency and credit needed to satisfy the
spending power of the government and the buying power of consumers... The
privilege of creating and issuing money is not only the supreme prerogative of
Government, but it is the Government's greatest creative opportunity. By the
adoption of these principles, the long-felt want for a uniform medium will be
satisfied. The taxpayers will be saved immense sums of interest, discounts and
exchanges. The financing of all public enterprises, the maintenance of stable
government and ordered progress, and the conduct of the Treasury will become
matters of practical administration. The people can and will be furnished with a
currency as safe as their own government. Money will cease to be the master and
become the servant of humanity. Democracy will rise superior to the money power."
- Abraham Lincoln. This solution worked so well Lincoln was seriously considering
adopting this emergency measure as a permanent policy.

This would have been great for everyone except the international bankers. They wasted
no time in expressing their view in the London Times. "If this mischievous financial
policy, which has its origin in North America, shall become indurated down to a
fixture, then that Government will furnish its own money without cost. It will pay
off debts and be without debt. It will have all the money necessary to carry on its
commerce. It will become prosperous without precedent in the history of the world.
The brains and wealth of all countries will go to North America. That country must
be destroyed or it will destroy every monarchy on the globe." - Hazard Circular -
London Times 1865. Hey, that doesn’t sound too bad to me. Could it be that these
international bankers have a slightly different agenda than you and me?

By1863 Lincoln needed more money to win the war. Seeing to it that the president could
not get the congressional authority to issue more greenbacks, the bankers proposed the
National Bank Act. The Act passed and from this point on the entire US money supply
would be created out of debt. Bankers would buy U.S. government bonds with money
they created by issuing bank notes. This is essentially the same system we have today
with the Federal Reserve. The U.S. Treasury issues Bonds, Notes, and Bills and the

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“Fed” buys them by simply printing money. These bonds, notes, and bills are now
national debt and the taxpayers (you and I) get to pay the bankers unending interest on it.
Remember that this debt was created by the bankers simply cranking the handle on their
printing press, but the interest we pay them every year in taxes comes from our own hard
work. “I have never yet had anyone who could, through logic and reason, justify the
federal government borrowing the use of its own money.” - Wright Patman, Chair,
House Committee on Banking and Currency.

“The study of money, above all other fields in economics, is one in which complexity
is used to disguise truth or to evade truth, not reveal it.” – John Kenneth Galbraith,
economist. "The few who can understand the system will either be so interested in
its profits, or so dependent on its favors, that there will be no opposition from that
class, while on the other hand, the great body of the people, mentally incapable of
comprehending the tremendous advantages 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." - John Sherman, from a letter sent in 1863 to
New York Bankers, Morton, and Gould, in support of the then proposed National
Banking Act. John Sherman was right. For the last one hundred and forty-five years,
we’ve been so stupid that we couldn’t figure out that this system was set up against us to
benefit a few wealthy bankers. He’s literally laughing at us from the grave. If I were this
guy, I’d have that line on my tombstone so that everyone walking by would know I was
smarter than them. Remember, the monetary system he was writing about in 1863 is
almost exactly the same as what we have right now. Salmon P. Chase, Lincoln’s
Secretary of the Treasury, later regretted his involvement in the National Banking Act:
“My agency in promoting the passage of the National Banking Act was the greatest
financial mistake in my life. It has built up a monopoly which affects every interest
in the country.” It still does to this day. "The Money Power of the country will
endeavor to prolong its reign by working upon the prejudices of the people, until the
wealth is aggregated in a few hands and the Republic is destroyed. I feel at this
moment more anxiety for the safety of my country than ever before, even in the
midst of war." -Abraham Lincoln, - In a letter written to William Elkin just after the
passage of the National Banking Act of 1863.

Shortly before he was assassinated, Lincoln made the following statement: "The money
powers prey upon the nation in times of peace and conspire against it in times of
adversity. It is more despotic than a monarch, more insolent than autocracy and
more selfish than a bureaucracy. It denounces, as public enemies, all who question
its methods or throw light upon its crimes. I have two great enemies, the Southern
Army in front of me and the bankers in the rear. Of the two, the one at the rear is
my greatest foe." – Abraham Lincoln. “It denounces as public enemies, all who
question its methods or throw light upon its crimes.” As it did in the 1860’s, so it does
today.

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Lincoln had plans to reverse the National Bank Act after the election. Unfortunately, on
April 14th, 41 days after his reelection and five days after Lee’s surrender, Lincoln was
shot at Ford’s theater. Many people believe that John Wilkes Booth was an agent of
Nathan Rothschild, who did not want the U.S. Treasury to print its own money.
Allegations that international bankers were responsible for President Lincoln's
assassination have been rampant since that day. In 1934, in the Canadian House of
Commons, Member of Parliament, Gerald G. McGeer, stated he had obtained evidence
deleted from the public record that showed John Wilkes Booth was a mercenary working
for the international bankers. From his speech as reported in the Vancouver Sun, May 2,
1934: "Abraham Lincoln, the murdered emancipator of the slaves, was assassinated
through the machinations of a group representative of the International Bankers,
who feared the United States President's National Credit ambitions. There was only
one group in the world at that time who had any reason to desire the death of
Lincoln. They were the men opposed to his national currency program and who had
fought him throughout the whole Civil War on his policy of Greenback currency."

Gerald G. McGeer also stated that Lincoln's assassination was not solely because the
International Bankers wanted to re-establish a central bank in America, but also because
they wanted to base America's currency on gold, which they controlled. They wanted to
put America’s currency on a Gold Standard and this was in direct opposition to President
Lincoln's policy of issuing Greenbacks, based solely on the good faith and credit of the
United States. Gerald G. McGeer states, "They were the men interested in the
establishment of the Gold Standard and the right of the bankers to manage the
currency and credit of every nation in the world. With Lincoln out of the way, they
were able to proceed with that plan and did proceed with it in the United States.
Within 8 years after Lincoln's assassination, silver was demonetized and the Gold
Standard system set up in the United States." "Right after the Civil War there was
considerable talk about reviving Lincoln's brief experiment with the Constitutional
monetary system. Had not the European money-trust intervened, it would have no
doubt become an established institution." - W. Cleon Skousen

On April 12, 1866, Congress passed the Contraction Act, making the treasury retire most
of Lincoln's greenbacks. Using the Contraction Act to lower the amount of money in
circulation, it went from $1.8 billion in circulation in 1866, to $1.3 billion in 1867, to
$0.6 billion in 1876, to $0.4 billion only ten years later. Most people believe the
economists when they tell us that recessions and depressions are part of the natural
business cycle, but in truth, the money supply is controlled as it always has been, by a
small group of anonymous bankers for their own benefit. “I know of no severe
depression, in any country or any time, that was not accompanied by a sharp decline

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in the stock of money, and equally of no sharp decline in the stock of money that was
not accompanied by a severe depression.” – Milton Friedman, economist.

By 1872 with the American public feeling the money squeeze, the Bank of England
(Rothschild), sent Ernest Seyd to America with about $500,000 to bribe congressmen into
demonetizing silver. Ernest drafted the legislation himself, which came into law with the
passing of the Coinage Act, effectively stopping the minting of silver that year and, again
contracting the money supply. As Ernest Seyd said, “I went to America in the winter of
1872-73, authorized to secure, if I could, the passage of a bill demonetizing silver. It
was in the interest of those I represented - the governors of the Bank of England - to
have it done. By 1873, gold coins were the only form of coin money." In 1875 Lord
Acton, Lord Chief Justice of England stated: “The issue which has swept down the
centuries and which will have to be fought sooner or later is the People vs. the
Banks.”

Within three years of the passage of the Coinage Act, 30% of the work force was
unemployed and American people longed for the days of silver backed money and
greenbacks. This period was known as the “Money Famine.” Congress set up the Silver
Commission to study the problem and, in their report, outlined this history: "The
disaster of the Dark Ages was caused by decreasing money and falling prices...
Without money, civilization could not have had a beginning, and with a diminishing
supply, it must languish and unless relieved, finally perish. At the Christian era, the
metallic money of the Roman Empire amounted to $1,800 million. By the end of the
fifteenth century, it had shrunk to less than $200 million. History records no other
such disastrous transition as that from the Roman Empire to the Dark Ages..." I
have no idea where they got their figures, but it’s an interesting story, nonetheless.

United States Silver Commission was aware of the problems being caused by the
constrictive money supply, but Congress took no action. In 1877, riots broke out all over
the country. The bank's response was to campaign against the idea that greenbacks should
be reissued. The American Bankers Association wrote: "It is advisable to do all in your
power to sustain such prominent daily and weekly newspapers, especially the
Agricultural and Religious Press, as will oppose the greenback issue of paper money
and that you will also withhold patronage from all applicants who are not willing to
oppose the government issue of money. To repeal the Act creating bank notes, or to
restore to circulation the government issue of money will be to provide the people
with money and will therefore seriously affect our individual profits as bankers and
lenders. See your congressman at once and engage him to support our interest that
we may control legislation." James Buel, Secretary, American Bankers Association.
Once again, we find that bankers are more than willing to see our nation and its people

12
suffer to make a profit. With bankers, 'less is more' and every need is an opportunity to
exploit.

James Garfield became President in 1881 with a firm grasp of where the problem lay.
"Whoever controls the money of a nation, controls that nation." and "Whosoever
controls the volume of money in any 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." James Garfield 1881. Within
weeks of his statement, President Garfield was assassinated (some say, by his doctors.)

Fleecing of the flock is the term bankers use for the process of booms and depressions
which make it possible for them to repossess property at a fraction of its worth. By
providing money at low interest rates, people naturally take advantage by buying homes,
farms, and businesses. Then by contracting the money supply, the bankers are able to
foreclose on these properties when the owners are suddenly unable to make their
payments. Recall Thomas Jefferson’s warning about inflation and deflation. In 1891 the
American Bankers Association was planning a major fleecing – three years in the future!
"On Sept 1st, 1894, we will not renew our loans under any consideration. On Sept
1st, we will demand our money. We will foreclose and become mortgagees in
possession. We can take two-thirds of the farms west of the Mississippi and
thousands of them east of the Mississippi as well, at our own price... Then the
farmers will become tenants as in England..." 1891 Letter from the American Bankers
Association read into the Congressional Record of April 29, 1913. The letter speaks for
itself, but take a moment to reread and reflect upon it. Think about all the families
affected by such as dastardly plan. It’s obvious to me that the moral makeup of these
people is substantially different from us normals. If you don’t think so, you may want to
consider a career in banking.

Since gold was scarce and silver and greenbacks were out of the equation, the bankers,
acting in unison, effectively squeezed the nation’s money supply. In 1896, Democrat
William Jennings Bryan ran for president with a “Free Silver” platform. In his
acceptance speech, Bryan said, “We will answer their demand for a gold standard by
saying to them: You shall not press down upon the brow of labor this crown of
thorns, you shall not crucify mankind upon a cross of gold.” The bankers and
industrialists supported the gold standard and the Republican nominee, William
McKinley. Many manufacturers told their employees that if Bryan were elected, all
factories would close and there would be no work for anyone. This was a very serious
threat to the workers in depressed times. McKinley won.

13
The Panic of 1907 – The Trap is Set.
Early in 1907, banker Jacob Schiff of Kuhn, Loeb & Co. warned in a speech to the New
York Chamber of Commerce, "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 its history." Then, as if by magic, the Panic of 1907!

The Panic of 1907, also known as the “Bankers' Panic,” caused stocks to fall 50% from
the previous year. The panic eventually spread throughout the nation and many banks
and businesses fell into bankruptcy. Primary causes include a retraction of market
liquidity by a number of New York City banks (surprise!) and a loss of confidence among
depositors. Runs on banks occur when people feel they won’t be able to retrieve their
funds when they want and in 1907, there was no F.D.I.C. to insure deposits or central
bank to inject liquidity into the system.

The Federal Reserve Bank of Minneapolis attributed the Panic of 1907 to financial
manipulation from the banking establishment. "If Knickerbocker Trust would falter,
then Congress and the public would lose faith in all trust companies and banks
would stand to gain, the bankers reasoned." Major banks, including J.P. Morgan
(Rothschild) and Chase (Rockefeller), launched an all-out attack on the Knickerbocker
Trust. They sold off assets in their competitor and planted stories about bad loans in their
newspapers. The run on Knickerbocker Trust turned into a panic and, just like today, the
Federal Government came to the rescue of the privately owned "National Banks."

During the depositors 'run' on the Knickerbocker Trust, J.P. Morgan and James Stillman
of First National City Bank acted as a "central bank," providing liquidity to stop the bank
run. President Theodore Roosevelt provided Morgan with $25 million in government
funds to control the panic. Morgan, acting as a one-man central bank, decided which
firms failed and which firms survived." His, of course, survived.

Although Morgan was briefly seen as a hero, widespread fears of his enormous wealth
and influence soon eroded this view. The trust companies that were growing rivals to
traditional banks (such as Morgan’s) were badly damaged. Some analysts believed that
the panic was engineered to damage confidence in trust companies so that banks would
benefit.

14
The chair of the House Committee on Banking and Currency, Arsène Pujo, convened a
special committee to investigate what had come to be called, the "Money Trust," the
virtual monopoly of Morgan and New York's other powerful bankers. The committee
issued a scathing report on the banking trade, and found that the officers of J.P. Morgan &
Co. also sat on the boards of directors of 112 corporations with a market capitalization of
$22.5 billion (the total capitalization of the New York Stock Exchange was then
estimated at $26.5 billion.) The final report of the committee stated: “Your committee is
satisfied from the proofs submitted, even in the absence of data from the banks, that
there is an established and well defined identity and community of interest between
a few leaders of finance...which has resulted in great and rapidly growing
concentration of the control of money and credit in the hands of these few men...
...and that a small group of men and their partners and associates have now further
strengthened their hold upon the resources of these institutions by acquiring large
stock holdings therein, by representation on their boards and through valuable
patronage, we begin to realize something of the extent to which this practical and
effective domination and control over our greatest financial, railroad and industrial
corporations has developed, largely within the past five years, and that it is fraught
with peril to the welfare of the country.” The Pujo Committee acknowledged that
America, contrary to the tenets of her Free Enterprise Credo, had come under the control
of a few powerful – interconnected – bankers and industrialists. President Teddy
Roosevelt added the newspapers to this list when he said, “These international bankers
and Rockefeller-Standard Oil interests control the majority of newspapers and the
columns of these papers to club into submission or drive out of public office officials
who refuse to do the bidding of the powerful corrupt cliques which compose the
invisible government.”

“The warning of Theodore Roosevelt has much timeliness today, for the real menace
of our republic is this invisible government which like a giant octopus sprawls its
slimy length over City, State, and nation... It seizes in its long and powerful tentacles
our executive officers, our legislative bodies, our schools, our courts, our
newspapers, and every agency created for the public protection... To depart from
mere generalizations, let me say that at the head of this octopus are the Rockefeller-
Standard Oil interest and a small group of powerful banking houses generally
referred to as the international bankers. The little coterie of powerful international
bankers virtually run the United States government for their own selfish purposes.
They practically control both parties, write political platforms, make cats paws of
party leaders, use the leading men of private organizations, and resort to every
device to place in nomination for high public office only such candidates as will be
amenable to the dictates of corrupt big business... These international bankers and
Rockefeller-Standard Oil interests control the majority of newspapers and
magazines in this country." - John Hylan, Mayor of New York, March 27, 1927.

15
"Three hundred men, all of whom know one another, direct the economic destiny of
Europe and choose their successors from among themselves." Walter Rathenau, who
in 1909 controlled German General Electric, “Fifty men have run America and that's a
high figure." Joseph Kennedy, July 26, 1936 - New York Times.

It’s interesting to note that”... J.P. Morgan, had only $19 million in securities in his
estate when he died in 1913, and securities handled by Morgan were actually owned
by his employer, Rothschild." New York Times, April 1, 1915. Morgan, it seems, far
from being the dominant force in American industry, was acting merely as an “employee”
of the Rothschilds. Just how powerful are these Rothschilds? It has been estimated that,
by the start of the 20th century, they controlled about half of the world’s wealth. Of
course, nobody will ever really know.

President Theodore Roosevelt had signed into law a bill creating the National Monetary
Commission in 1908, after the Panic of 1907 had resulted in a public outcry that the
nation’s monetary system be stabilized. One purpose of The National Monetary
Commission was to propose legislation to break the grip of the “Money Trust” and
Senator Nelson Aldrich was chosen as chairman of that committee. Curiously, Nelson
Aldrich was a very close associate of J. P. Morgan, the father-in-law of John D.
Rockefeller, Jr., (and grandfather to Nelson Aldrich Rockefeller and his brothers.)
Aldrich led the members of the Commission on a two-year tour of the central banks of
Europe, spending some three hundred thousand dollars of taxpayer money.

On the night of November 22, 1910, Senator Aldrich and a small delegation representing
some of the nation’s leading financiers slipped anonymously, one by one into Aldrich’s
private rail car at the Hoboken, New Jersey station and headed south to the privately
owned, Jekyll Island, Georgia. It is estimated that the seven men who boarded Aldrich’s
private rail car represented 1/4 of the wealth of the entire world. Nelson Aldrich was the
Republican "whip" in the Senate, Chairman of the National Monetary Commission, and
business associate of J.P. Morgan; Abraham Piatt Andrew, Assistant Secretary of the
United States Treasury; Frank A. Vanderlip, president of the National City Bank of New
York, the most powerful of the banks at that time, representing William Rockefeller and
the investment banking house of Kuhn, Loeb & Company; Henry P. Davison, senior
partner of J.P Morgan Company; Charles D. Norton, president of J.P. Morgan's First
National Bank of New York; Benjamin Strong, head of J.P. Morgan's Bankers Trust
Company (and, later, first head of the Federal Reserve Bank); and Paul M. Warburg, a
partner in Kuhn, Loeb & Company, a representative of the Rothschild banking dynasty in
England and France, and brother to Max Warburg who was head of the Warburg banking
consortium in Germany and the Netherlands. (By the way, Paul Warburg was the role
model for “Daddy Warbucks” of “Little Orphan Annie” fame and J.P. Morgan was the
model for the chubby little mustachioed banker in the Monopoly game.)

16
The purpose of the Jekyll Island meeting was to formulate an agreement on the structure
and operation of a banking cartel. The goal of this cartel, as is true with all cartels, was to
maximize profits by minimizing competition between members, to make it difficult for
new competitors to enter the field, and to utilize the police power of government to
enforce the cartel agreement. These banking competitors sat around a table of the Jekyll
Island Clubhouse and devised the Federal Reserve System to best suit their needs.

Security was tight and the first information regarding this meeting found its way into
print in 1916. It appeared in Leslie's Weekly, written by the financial reporter, B.C.
Forbes, who later founded Forbes Magazine. While interviewing Paul Warburg, Warburg
told him this story: “Picture a party of the nation's greatest bankers stealing out of
New York on a private railroad car under cover of darkness, stealthily heading
hundreds of miles South, embarking on a mysterious launch, sneaking on to an
island deserted by all but a few servants, living there a full week under such rigid
secrecy that the names of not one of them was once mentioned lest the servants learn
the identity and disclose to the world this strangest, most secret expedition in the
history of American finance. I am not romancing. I am giving to the world, for the
first time, the real story of how the famous Aldrich currency report, the foundation
of our new currency system, was written.”

In 1930, Paul Warburg wrote in his massive, 1750 page book, "The Federal Reserve
System, Its Origin and Growth:" "The results of the conference were entirely
confidential. Even the fact there had been a meeting was not permitted to become
public." "Though eighteen years have since gone by, I do not feel free to give a
description of this most interesting conference concerning which Senator Aldrich
pledged all participants to secrecy."

Another participant, Frank Vanderlip, wrote in an article that appeared in the Saturday
Evening Post on February 9, 1935: “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. We were told to leave our last names
behind us. We were told further that we should avoid dining together on the night of
our departure. We were instructed to come one at a time and as unobtrusively as
possible to the railroad terminal on the New Jersey littoral of the Hudson where
Senator Aldrich’s private car would be in readiness attached to the rear-end of a
train to the south. Once aboard the private car we began to observe the taboo that
had been fixed on last names. We addressed one another as Ben, Paul, Nelson and
Abe. Davison and I adopted even deeper disguises abandoning our first names. On

17
the theory that we were always right, he became Wilbur and I became Orville after
those two aviation pioneers the Wright brothers. The servants and train crew may
have known the identities of one or two of us, but they did not know all and it was
the names of all printed together that would’ve made our mysterious journey
significant in Washington, in Wall Street, even in London. Discovery we knew
simply must not happen.”

So, why all the secrecy? Vanderlip further wrote, “If it were to be exposed publicly
that our particular group had gotten together and written a banking bill, that bill
would have no chance whatever of passage by Congress.” Why would Vanderlip state
this? Because the expressed purpose of the bill was to break the grip of the “Money
Trust” and it was written for and by the “Money Trust.” Competing bankers got together
in secret to form a cartel insuring they would always have the money they needed to run
their businesses, stifle competition, and bail themselves out whenever they made a
mistake. Had the public known that fact, there would have never been a Federal Reserve
System. The fact that the Federal Reserve System was formulated, not in the halls of
Congress with open debate and public news coverage, but on a small, private island, by a
few of the world’s wealthiest bankers, in complete secrecy, and designed to perpetuate
their wealth at the expense of the taxpayers, to me at least, makes this a conspiracy... Not
a conspiracy theory, a conspiracy fact.

“The participants in the Jekyll Island conference returned to New York to direct a
nationwide propaganda campaign in favor of the "Aldrich Plan". Three of the
leading universities, Princeton, Harvard, and the University of Chicago, were used
as the rallying points for this propaganda, and national banks had to contribute to a
fund of five million dollars to persuade the American public that this central bank
plan should be enacted into law by Congress. Woodrow Wilson, governor of New
Jersey and former president of Princeton University, was enlisted as a spokesman
for the Aldrich Plan. During the Panic of 1907, Wilson had declared, "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." - Eustace Mullins, Secrets
of the Federal Reserve.

In 1912, Woodrow Wilson won the Democratic Party’s nomination for President, and in
his populist-friendly acceptance speech, he warned against the "money trusts," and
advised "a concentration of the control of credit...may at any time become infinitely
dangerous to free enterprise” But, these were just words politicians use to get elected.
Wilson was already under the thumb of the bankers. By enticing Teddy Roosevelt to un-
retire just long enough to split the Republican vote, the bankers got their man into the
White House.

18
The first bill presented to Congress from the secret Jekyll Island meeting was known as
the “Aldrich Bill,” and was soon identified as supporting big banking interests. It never
passed. Representative Charles Lindbergh said, “The Aldrich Plan is the Wall Street
Plan. It is a broad challenge to the government by the champion of the Money
Trust. It means another panic, if necessary, to intimidate the people. Aldrich, paid
by the government to represent the people, proposes a plan for the Trusts instead.”
In 1911, the Aldrich Plan became part of the official platform of the Republican Party,
but... “The Aldrich bill was condemned in the (Democratic) platform... When
Woodrow Wilson was nominated ... The men who ruled the Democratic Party
promised the people that if they were returned to power there would be no central
bank established here while they held the reins of government. Thirteen months
later, that promise was broken, and the Wilson administration, under the tutelage of
those sinister Wall Street figures who stood behind Colonel House, established here
in our free country the worm-eaten monarchical institution of the “king’s bank” to
control us from the top downward, and to shackle us from the cradle to the grave.”
– House Banking Chairman, Rep. Louis McFadden. The “Aldrich bill” was reworked by
Paul Warburg and presented again in Congress as the “Glass-Owen bill.” It was, in fact
virtually the same in every important detail. Both Vanderlip and Aldrich then publicly
criticized the Owens-Glass bill in an attempt to steer Congress and the public away from
the truth.

“Jekyll Island planners Vanderlip and Aldrich spoke out venomously against
Glass's bill, even though entire sections were identical to the Aldrich Plan. It was
clearly an effort to garner public support for the Glass bill by the appearance of
banker opposition … The appearance of opposition by Wall Street was necessary.
William McAdoo, Wilson's son-in-law who was appointed secretary of the
Treasury, later revealed, ‘Bankers fought the . . . Federal Reserve Act with the
tireless energy of men fighting a forest fire. They said it was populistic, socialistic,
half-baked, destructive, infantile, badly conceived and unworkable.’ However,
McAdoo said in interviews with these bankers, ‘I perceived gradually, through all
the haze and smoke of controversy, that the banking world was not really as much
opposed to the bill as it pretended to be...’”- Jim Marrs, “Rule by Secrecy”

Warburg, the father of both bills, reassuring his paid friends in Congress said, “Brushing
aside the external differences affecting the “shells,” we find the “kernels” of the two
systems very closely resembling and related to each other.” “Although the Aldrich
Federal Reserve Plan was defeated when it bore the name Aldrich, nevertheless its
essential points were all contained in the plan that finally was adopted.” – Frank
Vanderlip. Alfred Crozier, an attorney from Ohio testified before Congress just before
passage of the Glass-Owen bill, “The bill grants just what Wall Street and the big
banks for 25 years have been striving for – private instead of public control of
currency. It does this as completely as the Aldrich bill. Both measures rob the

19
government and the people of all effective control over the public’s money, and vest
in the banks exclusively the dangerous power to make money among the people
scarce or plenty.”

"So the American people, who had suffered through the American Revolution, the
War of 1812, the battles between Andrew Jackson and the Second Bank of the
United States, the Civil War, the previous panics of 1873 and 1893, and now the
Panic of 1907, were finally conditioned to the point of accepting the solution offered
by those who had caused all of these events: the international bankers. That solution
was a central bank." - Ralph Epperson. Rep. Charles Lindbergh (R – MN),
commenting on the Federal Reserve Act: "This act establishes the most gigantic trust
on earth. When the President signs this bill, the invisible government by the
Monetary Power will be legalized. The people may not know it immediately, but the
day of reckoning is only a few years removed ... The worst legislative crime of the
ages is perpetrated by this banking bill."

“The bill as it stands seems to me to open the way to a vast inflation of the currency.
I had hoped to support this bill, but I cannot vote for it because it seems to me to
contain features and to rest upon principles in the highest degree menacing to our
prosperity, to stability in business, and to the general welfare of the people of the
United States.” - Senator Henry Cabot Lodge, December 17, 1913

The Federal Reserve Act (Owen-Glass Act) had been shepherded through a
Congressional Conference Committee meeting scheduled for between 1:30 - 4:30 AM
(when most members of Congress were asleep) on December 22, 1913. The Act was then
voted on the next day and passed although many members of the body had left for the
Christmas holidays, reassured by Senate leadership that nothing would be done until after
the New Year. Most of the others who stayed behind hadn't had time to read the bill or
understand its contents. President Wilson, under pressure from Bernard Baruch, signed
the bill into law at 6:30 P.M. that very same day. "I unwittingly ruined my country." –
Woodrow Wilson.

By the way, we can all thank Senator Nelson Aldrich for co-authoring the bill that
established the Federal Income Tax, which was also ratified in 1913. I should also let
you know that almost all of your personal income tax goes to pay the Federal Reserve
interest on the money they create out of thin air. "100% of what is collected is
absorbed solely by interest on the Federal Debt ... all individual income tax revenues
are gone before one nickel is spent on the services taxpayers expect from
government." - Grace Commission report submitted to President Ronald Reagan -
January 15, 1984. And isn’t that nice to know. It appears that the only reason the Federal
Income Tax was created was so that we working stiffs can pay international bankers

20
hundreds of billions of dollars each year for interest on nothing. Think about that when
you pay your taxes each year. Was it just coincidence that the Federal Reserve System
and the Income Tax were created in the same year? Was 1913 just a particularly bad year
for Americans? The U.S. survived for 125 years without imposing an income tax on her
citizens. Why did it need one now? There are many conspiracy theories surrounding the
legitimacy of the Federal Income Tax and again, it would take many additional pages to
explain them here. Let me summarize them for you: “Don’t argue, just pay your taxes.
They have guns and can mess you up.”

So, did the Federal Reserve Act do what it was supposed to do? Did it reign in the
“Money Trust” and interlocking directorates? Not by a long shot. If anything, the
Federal Reserve granted new powers to the National Banks by permitting overseas
operations and new types of banking services. The greatest gift to the bankers was a
virtually unlimited supply of government loans when they experience liquidity problems
- but these loans would only go to selected institutions. “I never thought the Federal
Reserve System would prove such a failure.” - Senator Carter Glass (co-sponsor of the
bill.)

How does the Federal Reserve actually create money? When Congress needs money and
does not want to raise taxes, it goes to the Federal Reserve and asks for the money – Let’s
say $100 billion. The U.S. Treasury prints $100 billion of new Treasury bonds and puts
them up for sale. Usually about half of them are sold to the Chinese, Saudis, banks, and
little old ladies. The rest are bought by the Federal Reserve Banks. The Federal Reserve
Bank simply prints the money or sends electronic digits from one computer to another to
buy the bonds. "When you or I write a check there must be sufficient funds in our
account to cover that check, but when the Federal Reserve writes a check, it is
creating money." -Boston Federal Reserve Bank in a publication titled "Putting It
Simply." "We make money the old fashioned way. We print it." – Art Rolnick, former
Chief Economist, Minneapolis Federal Reserve Bank.

The new money is spent by the government, enters the economy, and everyone is happy.
The taxpayers don’t have any new taxes, but the value of everyone’s money is slightly
diluted and thus devalued. Again and again and again and again and again. This process
causes what we refer to as “inflation,” noting the obvious, that the price of everything
seems to go up. What is really happening is that as more and more dollars enter the
economy and chase the same amount of goods and services, their value declines.
Inflation is a form of regressive tax, affecting the poor and those on fixed incomes more
than the rich. In 1919, John Maynard Keynes, 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." And, later: "There is no subtler, no surer means of
overturning the existing basis of society than to debauch the currency. The process

21
engages all the hidden forces of economic law on the side of destruction, and does it
in a manner which not one man in a million is able to diagnose." - John Maynard
Keynes, economist.

In 1942, the Germans initiated Operation Bernhardt, a scheme that counterfeited 132
million British Pounds. These notes were meant to destroy the British economy by
flooding it with counterfeit money. It’s easy to recognize that this "economic warfare"
operation was obviously an act of war. However, today, the Federal Reserve is engaged
in the same scheme, creating trillions of dollars and flooding the U.S. money supply. This
time, the target is the United States of America. If we discovered that the actions of the
Federal Reserve were being controlled by Osama bin Laden (Google: “Tim Ossman”),
we would recognize them immediately as acts of war. Inflation robs America’s
businesses, savings accounts, retirement funds, jobs, and pensions - making it senseless to
try to save money. How can any of that be good for our country?

Louis McFadden, Chairman of the House Banking Committee called the Federal
Reserve Banks, “A super-state controlled by international bankers and international
industrialists acting together to enslave the world for their own pleasure.” Another
chairman of the House Banking Committee in the 1960s, Wright Patman (D –TX), said,
“In the United States today we have in effect two governments... We have the duly
constituted Government ... Then we have the independent, uncontrolled and
uncoordinated government in the Federal Reserve System, operating the money
powers which are reserved to Congress by the Constitution.”

Representative Charles A Lindbergh (1914): “The Federal Reserve System can cause
the pendulum of a rising and falling market to swing gently back and forth by slight
changes in the discount rate, or cause violent fluctuations by a greater rate
variation, and in either case it will possess inside information as to financial
conditions and advance knowledge of the coming change, either up or down. This is
the strongest, most dangerous advantage ever placed in the hands of a special
privilege class by any Government that ever existed. The system is private,
conducted for the sole purpose of obtaining the greatest possible profits from the use
of other people's money. They know in advance, when to create panics to their
advantage. They also know when to stop panic. Inflation and deflation work
equally well for them when they control finance."

"It is well 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." - Henry Ford (Echoing Andrew Jackson’s statement of almost a
hundred years earlier.)

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WORLD WAR I
The Germans borrowed money from the German Rothschild’s Bank, the British from the
British Rothschild’s Bank, and the French from the French Rothschild’s Bank. The
American Rothschild agent, J.P. Morgan was a sales agent for war materials and six
months into the war, he was spending $10 million a day. The Rockefeller's and the head
of President Wilson's War Industries Board, Bernard Baruch each made some 200 million
dollars while American families contributed both the money and blood of their sons.

During World War I, Woodrow Wilson turned the vast powers of the United States over to
three of his campaign backers, Federal Reserve author, Paul Warburg, Bernard Baruch
and Eugene Meyer (you would think that these wealthy bankers would have supported
the Republican candidate, who openly sponsored the establishment of a central bank.)
Baruch was appointed head of the War Industries Board, with life and death powers over
every factory in the United States; Eugene Meyer was appointed head of the War Finance
Corporation, in charge of the loan program that financed the war; and Paul Warburg ran
the nation’s banking system.

Our British allies viewed the placement of Paul Warburg as head of the banking
consortium with foreboding because his banker brother, Max Warburg, was the head of
the German Imperial Intelligence. In June 1918, Paul Warburg wrote Woodrow Wilson,
"I have two brothers in Germany who are bankers. They naturally now serve their
country to their utmost ability, as I serve mine."

War uses up more materials faster than anything else. In war expensive equipment doesn't
wear out, it gets blown up. Baruch spent the American taxpayer’s money at the rate of
ten billion dollars a year, and was the dominant member of the Munitions Price-Fixing
Committee, setting the prices at which the Government bought war materials. It would be
naive to presume that the purchase orders did not go to corporations in which he and his
associates had an interest. Some members of Congress were curious about Baruch’s
qualifications to exercise life and death powers over American industry in time of war.
Everyone knew he had no manufacturing experience and when he was called before a
Congressional Committee, Bernard Baruch stated that his profession was "Speculator." A
Wall Street gambler was Czar of all American Industry. Again, he made $200 million
during the War.

Congressional investigations of Eugene Meyer’s leadership of the War Finance

Corporation revealed that each night, the books were being altered before being brought
in for the next day’s investigation. Louis McFadden, Chairman of the House Banking and

23
Currency Committee, figured in two investigations of Meyer, in 1925, and again in 1930,
when Meyer was confirmed as a Governor of the Federal Reserve.

Representative McFadden: “Mr. Meyer is a brother-in-law of George Blumenthal, a

member of the firm of J.P. Morgan Company, which represents the Rothschild
interests. He also is a liaison officer between the French Government and J.P.
Morgan. Edmund Platt, who had eight years to go on a term of ten years as
Governor of the Federal Reserve Board, resigned to make room for Mr. Meyer. Platt
was given a Vice-Presidency of Marine Midland Corporation by Meyer's brother-in-
law Alfred A. Cook. Eugene Meyer, Jr. as head of the War Finance Corporation,
engaged in the placing of two billion dollars in Government securities, placed many
of those orders first with the banking house now located at 14 Wall Street in the
name of Eugene Meyer, Jr. Mr. Meyer is now a large stockholder in the Allied
Chemical Corporation. I call your attention to House Report No. 1635, 68th
Congress, 2nd Session, which reveals that at least twenty-four million dollars in
bonds were duplicated. Ten billion dollars worth of bonds surreptitiously destroyed.
Our committee on Banking and Currency found the records of the War Finance
Corporation under Eugene Meyer, Jr. extremely faulty. While the books were being
brought before our committee by the people who were custodians of them and taken
back to the Treasury at night, the committee discovered that alterations were being
made in the permanent records." That’s right; he made copies of bonds and coupons
and cashed them in. It’s hard to figure out just how that could have been done in “error.”
This record of “public service” did not prevent Eugene Meyer from continuing to serve
the American people on the Federal Reserve Board, as Chairman of the Reconstruction
Finance Corporation, and later, as head of the World Bank. These investigations may
explain why, at the end of World War One, Eugene Meyer was able to buy control of
Allied Chemical and The Washington Post (Katherine Graham was his daughter.)

On February 12, 1917, The New York Times reported, "The five members of the
Federal Reserve Board were impeached on the floor of the House by Rep. Charles
A. Lindbergh, Republican member of the House Banking and Currency Committee.
According to Mr. Lindbergh, ‘the conspiracy began in’ 1906 when the late J.P.
Morgan, Paul M. Warburg, a present member of the Federal Reserve Board, the
National City Bank and other banking firms ‘conspired’ to obtain currency
legislation in the interest of big business and the appointment of a special board to
administer such a law, in order to create industrial slaves of the masses, the
aforesaid conspirators did conspire and are now conspiring to have the Federal
Reserve Board administered so as to enable the conspirators to coordinate all kinds
of big business and to keep themselves in control of big business in order to
amalgamate all the trusts into one great trust in restraint and control of trade and
commerce." The House did not act his impeachment resolution.

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At the end of his term in the White House, Woodrow Wilson said, in regret: "We have
come to be one of the worst ruled, one of the most completely controlled
governments in the civilized world - no longer a government of free opinion, no
longer a government by... a vote of the majority, but a government by the opinion
and duress of a small group of dominant men.” “Some of the biggest men in the
United States, in the field of commerce and manufacture, are afraid of something.
They know that there is a power somewhere so organized, so subtle, so watchful, so
interlocked, so complete, so pervasive, that they had better not speak above their
breath when they speak in condemnation of it." - Woodrow Wilson

The Russian Revolution

Jacob Schiff, partner in Kuhn, Loeb, and Co., helped plan and finance the Russian
Revolution. Leon Trotsky (whose actual name was Lev Davidovich Bronstein) left New
York on March 27, 1917 aboard the S. S. Kristianiafjord, which had been chartered by
Jacob Schiff along with his brother-in-law, Paul Warburg. On April 3rd, Trotsky was
arrested by Canadian authorities in Halifax, Nova Scotia as a “German prisoner of war.”
Both the British and American governments urged them to let him go. Wilson said that if
they didn't comply, the U.S. would not enter the War. Trotsky was released, given an
American passport, a British transport visa, and a Russian entry permit. It is obvious that
Wilson knew what was going on, because accompanying Trotsky was Charles Crane of
the Westinghouse Company, who was also the Chairman of the Democratic Finance
Committee. The U.S. entered World War I three days later. Jennings C. Wise, in
Woodrow Wilson: Disciple of Revolution, states, "Historians must never forget that
Woodrow Wilson, despite the efforts of the British police, made it possible for Leon
Trotsky to enter Russia with an American passport." The resultant Revolution took
Russia out of the War and allowed Germany to concentrate more manpower on the
western front, against British and American forces.

Russian General Arsène DeGoulevitch wrote in Czarism and the Revolution that, “The
main purveyors of funds for the revolution, however, were neither crackpot Russian
millionaires nor armed bandits of Lenin. The 'real' money primarily came from
certain British and American circles which for a long time past had lent their
support to the Russian revolutionary cause...” and that the revolution was
"...engineered by the English, more precisely by Sir George Buchanan and Lord
(Alfred) Milner (of the Round Table) ... In private conversations I have been told
that over 21 million rubles were spent by Lord Milner in financing the Russian
Revolution." (There will be much more on Milner and the “Round Table” in later
blogs.) Actually, Jacob Schiff contributed $20 million to the revolution, the Rockefellers
gave $1 million, Federal Reserve Bank Director, William Boyce Thompson gave a
million, and so did the President of Rockefeller’s Chase National Bank, Albert H.
Wiggin.

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"The course of Russian history has, indeed, been greatly affected by the operations
of international bankers... The Soviet Government has been given United States
Treasury funds by the Federal Reserve Board... acting through the Chase Bank. ...
England has drawn money from us through the Federal Reserve Banks and has re-
lent it at high rates of interest to the Soviet Government... The Dnieperstory Dam
was built with funds unlawfully taken from the United States Treasury by the
corrupt and dishonest Federal Reserve Board and the Federal Reserve Banks." Rep.
Louis T. McFadden (R-PA) Chairman of the House Banking and Currency Committee.

In 1944 Mr. Henry Morgenthau Jr., Mr. Roosevelt's Secretary of the Treasury, and his
Assistant Secretary, Mr. Harry Dexter White (a Soviet agent) ordered the shipment to the
Soviet Government of United States Treasury plates, special ink, and currency paper (also
supplies of uranium and heavy water.) By the end of 1946, the United States Military
Government in Germany found it had redeemed about $250,000,000 in counterfeit notes
(One estimate was $380 million.)

Why would rich capitalists fund a communist revolution? Well, for one thing, Czarist
Russia had no central bank for the international bankers to plunder. In addition, the Czar
had intervened in America’s Civil War, sending fleets to both New York and San
Francisco, keeping the French and British (literally) at bay. This spoiled the Rothschild
plan to split our country in two. And, according to Gary Allen: "If one understands
that socialism is not a share-the-wealth program, but is in reality a method to
consolidate and control the wealth, then the seeming paradox of super-rich men
promoting socialism becomes no paradox at all. Instead, it becomes logical, even the
perfect tool of power-seeking megalomaniacs. Communism or more accurately,
socialism, is not a movement of the downtrodden masses, but of the economic elite."

Even when Communism collapsed in the Soviet Union, Boris Yeltsin revealed that most
of the foreign aid was ending up: "straight back into the coffers of western banks in
debt service." The international bankers, it seems, have always owned everybody.

"People who will not turn a shovel full of dirt… nor contribute a pound of material,
will collect more money from the United States than will the People who supply all
the material and do all the work. This is the terrible thing about interest ...But here
is the point: If our nation can issue a dollar bond, it can issue a dollar bill. The
element that makes the bond good makes the bill good, also. The difference between
the bond and the bill is the bond lets money brokers collect twice the amount of the
bond and an additional 20%, whereas the currency pays nobody but those who
contribute directly in some useful way. It is absurd to say that our country can issue

26
$30 million in bonds and not $30 million in currency. Both are promises to pay, but
one promise fattens the usurers and the other helps the people." - Thomas A. Edison,
the New York Times, December 6, 1921. Of course, this is true and we all know it. If
you buy a house for $250,000 with a 30-year loan at 7.5%, you will end up paying over
one and a half times as much in interest as you paid for the actual building and land. The
loan was created out of nothing, with the stroke of a pen using fractional reserve banking,
but the interest paid was created from 30 years of blood, sweat, and tears of the
homeowner.

From the early 1920s to 1929, the monetary supply expanded and the nation experienced
strong economic growth. Curiously, however, the number of banks started to
decline. Toward the end of the period, speculation and loose money had propelled asset
and equity prices. The stock market crashed, and as the banks struggled with liquidity
problems, the Federal Reserve actually cut the money supply. Without a doubt, this is the
greatest financial panic and economic collapse in American history (so far) - and it never
could have happened on this scale without the Federal Reserve Bank’s intervention.
Banks collapsed and a few of the old Money Trust banks managed to swoop in and grab
up competitors for pennies on the dollar. (Remember Jefferson’s warning, “First by
inflation, then by deflation...the banks will deprive the people of all property”)

"Nothing did more to spur the boom in stocks than the decision made by the New
York Federal Reserve bank, in the spring of 1927, to cut the rediscount rate.
Benjamin Strong, Governor of the bank, was chief advocate of this unwise measure,
which was taken largely at the behest of Montague Norman of the Bank of
England.” - Bernard Baruch. Why is the Bank of England (Rothschild) telling the
Federal Reserve Bank what to do ... Like they own it?

The Crash of ‘29

In April 1929, Paul Warburg sent out a secret warning to his friends that a collapse and
nationwide depression had been planned for later that year. Joseph P. Kennedy, John F.
Kennedy's father, was worth 4 million dollars in 1929. By 1935 that had increased to
over 100 million dollars. The money did not simply disappear in 1929; it just ended up
consolidated in fewer and fewer hands, as was planned.

So, as all the bankers and their friends already knew, in August the Federal Reserve
began to tighten the money supply. Then on the 24th of October 1929, the New York
bankers called in their broker call loans. This meant that anyone who bought stock on
margin and couldn’t come up with the rest of the money they owed had to dump their

27
stocks to cover their loans. Because of this, the stock market crashed on a day that would
go down in history as, "Black Thursday." Winston Churchill, after arriving from Chicago
in Bernard Baruch's private train, was on the visitor’s gallery of the New York Stock
Exchange just as the crash happened. The story goes, “When Churchill was ruined,
Baruch called him to his office, and gave all his money back, but not without an
understanding. At Churchill’s family home in Chartwell, he has two pictures, one
above the other. The top picture was of Bernard Baruch, the picture below was of a
black and white bulldog -- the bulldog, the symbol of Sir Winston himself in the
world media. The message, with Churchillian wit, is clear -- "dog and master."

"It was not accidental. It was a carefully contrived occurrence. The international
bankers sought to bring about a condition of despair here so that they might emerge
as rulers of us all!" - Congressman Louis McFadden (chairman of the House Banking
Committee at the time.)

William Bryon, author of The United States' Unsolved Monetary and Political Problems,
had this to say regarding the Panic of 1929, “When everything was ready, the New
York financiers started calling 24 hour broker call loans. This meant that the
stockbrokers and the customers had to dump their stock on the market in order to
pay the loans. This naturally collapsed the stock market, and brought a banking
collapse all over the country, because the banks not owned by the oligarchy were
heavily involved in broker call claims at this time. Bank runs soon exhausted their
coin and currency, and they had to close. The Federal Reserve refused to come to
their aid, even though they were instructed under the law to maintain an elastic
currency."

"Under the Federal Reserve, panics are scientifically created. The present panic is
the first scientifically created one, worked out as we might figure a mathematical
problem." - - Congressman Charles Lindbergh. Remarks by Federal Reserve Governor
Ben S. Bernanke, March 2, 2004: “The market crash of October 1929 showed if
anyone doubted it, that a concerted effort by the Fed can bring down stock prices.
But the cost of this "victory" was very high.

Curtis Dall, FDR's son-in-law, a manager for Lehman Brothers was on the floor of the
New York Stock Exchange the day of the Crash. He said, "Actually, it was a calculated
'shearing' of the public by the world money powers, triggered by the planned
sudden shortage of call money in the New York money market." "The Federal
Reserve definitely caused the Great depression by contracting the amount of
currency in circulation by one-third from 1929 to 1933." - Milton Friedman, Nobel
Prize winning economist.

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Whenever anyone writes about the crash of 1929, they invariably tell the
story about how all the really big investors of the day got out of the market
just in time, while all the schmucks lost their money. When you stop and
think that the run on Wall Street came about because of the big New York
banks made a margin call and that the very same individuals who were
“smart” enough to get out of the market early owned these banks, it doesn’t
seem as much “smart” as it does “planned.” Knowing the facts, would you
call the crash of ’29 a conspiracy?

In June of 1930, Herbert Hoover received a delegation of public-spirited men who urged
an expansion of public works projects to help ease unemployment. “Gentlemen,' the
President said, 'you have come sixty days too late. The depression is over.” A 1930
version of: “Mission Accomplished.” Oh, just a quick word on Hoover’s “Trickle Down”
theory: It doesn’t work. Republican President Hoover tried the “trickle down” theory
(Hoover’s term) to solve economic problems during the last few years of his term. The
“Great Depression” is often referred to as the “Republican Depression” because it was
Hoover’s financial philosophy that contributed to the collapse of the economy. Hoover’s
tax cuts for the rich did not trickle anywhere and things got worse – for the lower and
middle classes. When President Roosevelt got into office, he raised taxes on the rich,
created jobs for the poor, and things got a little better (Trickle up?) President Ronald
Reagan employed Hoover’s failed trickle down theory again in the ‘80s and, just like the
first time it was tried, the rich got richer, but the poor got poorer and the economy
declined. Today, we see the same problem repeat itself encouraged by Bush’s tax cuts for
the wealthy and deregulation of the financial industry. The rich get richer while the poor
bail them out. There seems to be a pattern. “Any party which accepts credit for the
rain must not be surprised if its opponents blame it for the drought.” - Dwight
Morrow on President Hoover.

“The bank is something more than men, I tell you. It’s the monster. Men made it,
but they can’t control it.” - John Steinbeck, The Grapes of Wrath.

“During the 1930s, thousands of U.S. banks experienced runs by depositors and
subsequently failed... “Long-established central banking practice required that the
Fed respond both to the speculative attack on the dollar and to the domestic
banking panics. However, the Fed decided to ignore the plight of the banking
system ... once again the Fed had chosen to tighten monetary policy despite the fact
that macroeconomic conditions--including an accelerating decline in output, prices,
and the money supply--seemed to demand policy ease”... “The Federal Reserve had
the power at least to ameliorate the problems of the banks. For example, the Fed
could have been more aggressive in lending cash to banks (taking their loans and
other investments as collateral), or it could have simply put more cash in circulation.

29
Either action would have made it easier for banks to obtain the cash necessary to
pay off depositors, which might have stopped bank runs before they resulted in
bank closings and failures. Indeed, a central element of the Federal Reserve's
original mission had been to provide just this type of assistance to the banking
system. The Fed's failure to fulfill its mission was, again, largely the result of the
economic theories held by the Federal Reserve leadership.” – Ben Bernanke,
Chairman of the Federal Reserve Banks

“Mr. Chairman, 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. The Federal Reserve Board, a Government board, has cheated the
Government of the United States out of enough money to pay the national debt. The
depredations and the iniquities of the Federal Reserve Board and the Federal
Reserve banks acting together have cost this country enough money to pay the
national debt several times over. This evil institution has impoverished and ruined
the people of the United States, has bankrupted itself, and has practically
bankrupted our Government. It has done this through defects of the law under
which it operates, through the maladministration of that law by the Federal Reserve
Board, and through the corrupt practices of the moneyed vultures who control it.”
“From the Atlantic to the Pacific our country has been ravaged and laid waste by
the evil practices of the Federal Reserve Board and the Federal Reserve banks and
the interests which control them ... This is an era of economic misery, and for the
conditions that caused that misery, the Federal Reserve Board and the Federal
Reserve banks are fully liable.” - Louis Mc Fadden, Republican, Chairman of the
House Banking Committee, Congressional Record - June 10, 1932.

"Liquidate labor, liquidate stocks, liquidate real estate… values will be adjusted,
and enterprising people will pick up the wreck from less-competent people." –
Andrew Mellon, Secretary of the Treasury. “Many Fed officials appeared to subscribe
to the infamous "liquidationist" thesis of Treasury Secretary Andrew Mellon, who
argued that weeding out "weak" banks was a harsh but necessary prerequisite to
the recovery of the banking system. Moreover, most of the failing banks were
relatively small and not members of the Federal Reserve System, making their fate
of less interest to the policymakers. In the end, Fed officials decided not to intervene
in the banking crisis, contributing once again to the precipitous fall in the money
supply.” – Ben Bernanke

Between 1929 and 1933, the “Fed” reduced the money supply by an additional 33%. In
only a few weeks from the day of the crash, 3 billion dollars of wealth vanished. Within
a year, 40 billion dollars of wealth vanished. "The stock of money, prices & output
was decidedly more unstable after the establishment of the Reserve System than

30
before. The most dramatic period of instability in output was, of course, the period
between the 2 wars...This evidence persuades me that at least a third of the price
rise during & just after World War I is attributable to the establishment of the
Federal Reserve System...& that the severity of each of the major contractions--
1920-21, 1929-33 & 1937-38-- is directly attributable to acts of commission &
omission by the Reserve authorities." - Nobel Prize winning economist Milton
Friedman.

The Great Gold Grab

About one month after he took office, President Roosevelt, by Executive Order,
confiscated all the gold in the hands of Americans. The official price paid was $20.65 per
ounce, a bonus of $0.65 per ounce. Eight months later, the official price paid for gold
was raised to $35.00 per ounce. For the suckers, the American public, their meager
supply of dollars was instantly devalued by about 40%. For those who were in the know,
the rich who had bank accounts in other lands, it turned a quick, risk-free profit, nearly
doubling their money. President Roosevelt later disowned himself from the bill claiming
to have not read it and his Secretary of the Treasury claimed this was, "what the experts
wanted." Roosevelt signed many Executive Orders during his first term – presumably
carefully written by “experts” who, unlike FDR, knew exactly what they were doing.
"All safe deposit boxes in banks or financial institutions have been sealed... and may
only be opened in the presence of an agent of the I.R.S." - President F.D. Roosevelt,
1933. Think about that.

An interesting side note is that the legal basis for Roosevelt’s Executive Order was the
"War Powers Act" of October 6, 1917. This war had been over for 14 years! The 1917
law was officially titled the "National Emergency in Banking Relief and Trading with the
Enemy Act." The 1917 War Powers Act contained explicit language that excluded
American citizens from the legislation so FDR convened a Special Session of Congress
in 1933 specifically to remove that clause. Consequently every law abiding US citizen
was considered an "enemy” and subject to its decree. This permitted the President to
declare a "national emergency" for just about any reason. In fact, the U.S. has been in a
constant state of “emergency” since 1933 and there are now in effect at least four
different president-proclaimed states of national emergency – from 1933, 1950, 1970, and
1971. They just do not go away.

"At noon on the 4th of March, 1933, FDR with his hand on the Bible, took an oath
to preserve, protect and defend the Constitution of the U.S. At midnight on the 5th
of March 1933, he confiscated the property of American citizens. He took the
currency of the United States standard of value. He repudiated the internal debt of

31
the Government to its own citizens. He destroyed the value of the American dollar.
He released, or endeavored to release, the Fed from their contractual liability to
redeem Fed currency in gold or lawful money on a parity with gold. He depreciated
the value of the national currency.” "Has Roosevelt relieved any other class of
debtors in this country from the necessity of paying their debts? Has he made a
proclamation telling the farmers that they need not pay their mortgages? Has he
made a proclamation to the effect that mothers of starving children need not pay
their milk bills? Has he made a proclamation relieving householders from the
necessity of paying rent? Not he! He has issued one kind of proclamation only, and
that is a proclamation to relieve international bankers and the foreign debtors of the
United States Government. ” Remarks by Louis McFadden R-PA

Bought at bargain basement price with money produced from nothing by the Federal
Reserve, the gold was melted down and stacked in the newly built bullion depository,
Fort Knox. Once collected in 1935 the price of gold was raised from $20.65 up to $35 per
ounce, but only people with foreign bank accounts could buy this gold. But that's not all
folks. It has estimated that by the end of World War II Fort Knox held about 70% of the
world's gold, but over the years, it was sold off to the European bankers while a public
audit of Fort Knox reserves was repeatedly denied. While Americans could not own
gold, other than as rare coins, individuals acting through foreign banks could purchase all
the U.S. gold they wanted at $35 dollars per ounce.

"Allegations of missing gold from our Fort Knox vaults are being widely discussed
in European circles. But what is puzzling is that the Administration is not hastening
to demonstrate conclusively that there is no cause for concern over our gold treasure
- if indeed it is in a position to do so." Edith Roosevelt. In 1953, President Eisenhower
ordered an audit and Fort Knox was found to contain over 700 million ounces of gold.
Although Federal Law requires an annual physical audit of Fort Knox's gold, it is under
Eisenhower's presidency that it was last audited - for reasons that will soon become clear.

In 1971, when Nixon reopened the gold window to Americans, the price soared. By
1979, it had peaked at about $850 per ounce. In 1974, a New York periodical published
an article claiming that the Rockefeller family was manipulating the Federal Reserve to
sell Fort Knox gold at $42.22 per ounce - when the market was at $160 to $170 an
ounce. Three days after the publication of this story, its anonymous source, long time
personal secretary to Nelson Rockefeller, Louise Auchincloss Boyer, fell to her death
from the window of her tenth story apartment in New York. Labeled an, “apparent
suicide” by police, she was not depressed according to her friends and left no suicide
note.

Finally, in 1981, President Ronald Reagan, considering going back to a gold standard,
decided to examine the books of Fort Knox. He appointed a group called The Gold

32
Commission who reported that the US Treasury owned no gold at all. All the gold
remaining in Fort Knox is now owned by that private corporation, the Federal Reserve
Bank, held as collateral against the “national debt.” By printing dollars made from
nothing, the Fed had robbed the largest treasure of gold on earth.

A key piece of legislation in this story is the Emergency Banking Act of 1933, which
Congress passed on March 9 without having read it and after “only the most trivial
debate.” House Minority Leader Bertrand H. Snell (R-NY) conceded that it was
"entirely out of the ordinary" to pass legislation that "is not even in print at the time
it is offered." He urged his colleagues to pass it all the same. "The real truth of the
matter is, as you and I know that a financial element in the larger centers has owned
the government ever since the days of Andrew Jackson. History depicts Andrew
Jackson as the last truly honorable and incorruptible American president." -
Franklin D. Roosevelt. “The real rulers in Washington are invisible, and exercise
power from behind the scenes.” — Supreme Court Justice Felix Frankfurter, 1952.

The U.S. was not the only country controlled by bankers. In its 20th June, 1934 issue,
New Britain magazine of London published a statement made by former British Prime
Minister David Lloyd George that, "Britain is the slave of an international financial
bloc." Also in the article, “Democracy has no more persistent and insidious foe than
money power ...questions regarding Bank of England, its conduct and its objects,
are not allowed by the Speaker (of the House of Commons)."

“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 iniquity and born in sin. Bankers own the Earth. Take it
away from them, but leave them the power to create money, and with the flick of the
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, and they ought to
disappear, for then this would be a better and happier world to live in. But if you
want to continue to be slaves of the banks and pay the cost of your own slavery, then
let bankers continue to create money and control credit." - Sir Josiah Stamp, director
of the Bank of England during the years 1928-1941

The Hitler Project

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“After World War I, Germany fell into the hands of the German International
Bankers. Those bankers bought her lock, stock, and barrel. They have purchased
her industries, they have mortgages on her soil, they control her production, they
control all her public utilities. Through the Federal Reserve Board... over $30
billions of American money... has been pumped into Germany. You have all heard
of the spending that has taken place in Germany... modernistic dwellings, her great
planetariums, her gymnasiums, her swimming pools, her fine public highways, her
perfect factories. All this was done on our money. All this was given to Germany
through the Federal Reserve Board. The Federal Reserve Board has pumped so
many billions of dollars into Germany that they dare not name the total.” Rep.
Louis McFadden, Chairman of the House Banking Committee. “What luck for rulers
that men do not think.” – Adolph Hitler

U.S. Corporations funding Hitler included Standard Oil, General Electric, I.T.T.,
American I.G. Farben, Ethyl Corporation, General Motors, and Ford. The largest
contributor to the fund was I.G. Farben. The board of American I.G. Farben at this time
contained some of the most prestigious names among American industrialists: Edsel B.
Ford of the Ford Motor Company, C.E. Mitchell of the Federal Reserve Bank of New
York, and Walter Teagle, director of the Federal Reserve Bank of New York, the Standard
Oil Company of New Jersey, and President Franklin D. Roosevelt's Georgia Warm
Springs Foundation. Paul M. Warburg, first director of the Federal Reserve Bank of New
York and chairman of the Bank of Manhattan, was a Farben director and in Germany, his
brother Max Warburg was also a director of I.G, Farben.

Webster G. Tarpley and Anton Chaitkin, authors of George Bush: The Unauthorized
Biography wrote: “On Oct. 20, 1942, (Almost a year after entering the WW II) the U.S.
government ordered the seizure of Nazi German banking operations in New York
City, which were being conducted by Prescott Bush. Under the Trading with the
Enemy Act, the government took over the Union Banking Corporation, in which
Bush was a director. The U.S. Alien Property Custodian seized Union Banking
Corp.'s stock shares, all of which were owned by Prescott Bush, E. Roland “Bunny”'
Harriman, three Nazi executives, and two other associates of Bush.” "On October
28, the government issued orders seizing two Nazi front organizations run by the
Bush-Harriman bank: the Holland-American Trading Corporation and the
Seamless Steel Equipment Corporation." ..."Nazi interests in the Silesian-American
Corporation, long managed by Prescott Bush and his father in law George Herbert
Walker, were seized under the Trading with the Enemy Act on Nov. 17, 1942..." The
seizures of Bush businesses were reported in a number of American papers including The
New York Times and The Wall Street Journal. Prescott Bush, of course, was the father of
President George Herbert Walker Bush and grandfather of President George Walker
Bush. George Herbert Walker was Prescott’s father-in-law. "That's where the Bush
family fortune came from: It came from the Third Reich." - John Loftus, US Justice

34
Dept. Nazi War Crimes investigator. "Let’s forgive the Nazi war criminals." -
President George Bush, New York Times – April 14, 1990. This has nothing to do with
the Federal Reserve Bank, it’s just a fun fact you can use at parties.

The World Bank and I.M.F.

Towards the end of World War II, in Bretton Woods, New Hampshire, international
bankers got together and created the framework for the International Monetary Fund
(IMF) and the World Bank. The principal architects of the IMF were Harry Dexter White
and John Maynard Keynes. Interestingly, Harry Dexter White, liaison between the U.S.
Treasury and State Department during WW II and later director of the I.M.F., was
positively identified as a Soviet spy (code name, "Jurist") by the FBI. The I.M.F. and
World Bank copied on a world scale what the Federal Reserve Act had established in the
United States. They created a banking cartel of the world's privately owned central
banks, which then assumed the power to dictate policies to the banks of all nations.

As struggling nations borrow from the IMF, they loose control when they can’t pay the
interest, and have to borrow more and more. The IMF will then decide which nations can
borrow more and which will starve. They can also use this as leverage to take state
owned assets like utilities as payment against the debt until IMF eventually “owns” the
country. Take Ecuador as a typical example. In order for Ecuador's government to be
allowed a loan of 1.5 billion dollars from the IMF, they were forced to take over the
unpaid private debts that Ecuador's elite owed to private banks and the IMF dictated price
hikes in electricity and other utilities. When that didn't give the IMF enough interest,
they ordered Ecuador to raise the price of cooking gas by 80%; transfer the ownership of
its biggest water system to foreign operators; grant British Petroleum the rights to build
and own an oil pipeline over the Andes; eliminate the jobs of 120,000 government
workers and reduce the wages of those remaining by 50%. In fact, the IMF and World
Bank have made the sale of electricity, water, telephone and gas systems a condition of
loans to every developing nation. The IMF owns 4 trillion dollars of third world “public”
assets. There are many losers in this world banking system and few winners, the bankers.
In 1987, Edmond de Rothschild created the World Conservation Bank, which cleverly
trades debts from third world countries for vast tracts of their land. This design ensures
the Rothschilds will gain control over huge portions of the earth.

The debt of third world countries is constantly being increased to provide temporary
relief from the poverty being caused by previous borrowing. Attempts to repay loans have
caused increased infant mortality and unemployment, deteriorating schools, and general
health and welfare problems. Typically, these loans do not alleviate poverty or further any
development; they simply create a steady flow of wealth from borrowing nations to the

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international bankers who control the IMF and the World Bank. As one prominent
Brazilian politician, Luis Ignacio Silva, put it: "The Third World War has already
started - a silent war, not for that reason any the less sinister. This war is tearing
down Brazil, Latin America and practically all the Third World. Instead of soldiers
dying there are children, instead of millions of wounded there are millions of
unemployed; instead of destruction of bridges there is the tearing down of factories,
schools, hospitals, and entire economies . . . It is a war by the United States against
the Latin American continent and the Third World. It is a war over the foreign debt,
one which has as its main weapon interest, a weapon more deadly than the atom
bomb, more shattering than a laser beam.

Eventually these people will come to realize that their chains were forged with money
created out of nothing. We can expect individual complaints at first, swelling to waves of
outrage as whole populations awaken from centuries of intellectual slumber to find their
futures foreclosed and bleak. If this “Third World” scenario frightens you, consider the
fact that this very same scam of creating money from debt is being used against you and
we call it the Federal Reserve System. Americans are now working longer hours than in
any other industrialized country and most of us just spinning our financial wheels while
slowly sliding down a slippery slope. There is a reason.

The Bankers’ Final Solution

"The powers of financial capitalism had a far-reaching plan, nothing less than to
create a world system of financial control in private hands able to dominate the
political system of each country and the economy of the world as a whole. This
system was to be controlled in a feudalist fashion by the central banks of the world
acting in concert, by secret agreements arrived at in frequent meetings and
conferences. The apex of the system was to be the Bank for International
Settlements in Basel, Switzerland; a private bank owned and controlled by the
world's central banks which were themselves private corporations. Each central
bank... sought to dominate its government by its ability to control treasury loans, to
manipulate foreign exchanges, to influence the level of economic activity in the
country, and to influence cooperative politicians by subsequent economic rewards in
the business world." - Carroll Quigley, Professor, Georgetown University, “Tragedy and
Hope”

"We shall have World Government, whether or not we like it. The only question is
whether World Government will be achieved by conquest or consent." - Paul
Warburg, Council on Foreign Relations and Architect of the Federal Reserve System: Feb
17, 1950 in an address to the U.S. Senate. "Who controls money controls the world.” –
Henry Kissinger.

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"We are grateful to the Washington Post, the New York Times, Time magazine and
other great publications whose directors have attended our meetings and respected
the promises of discretion for almost forty years. It would have been impossible for
us to develop our plan for the world if we had been subject to the bright lights of
publicity during those years. But, the world is now more sophisticated and prepared
to march towards a world-government. The supranational sovereignty of an
intellectual elite and world bankers is surely preferable to the National auto-
determination practiced in past centuries" - David Rockefeller, in an address to a
Trilateral Commission meeting in June of 1991.

In 1953, in a toast before the New York Press Club, John Swinton, former Chief of Staff
of the New York Times and the "Dean of his Profession" stated, "If I allowed my honest
opinions to appear in one issue of my paper, before twenty-four hours my
occupation would be gone. The business of journalists is to destroy the truth; to
pervert; to vilify; to fawn at the feet of mammon, and to sell this country and this
race for their daily bread. We are the tools and vessels for rich men behind the
scenes. We are the jumping jacks, they pull the strings and we dance. Our talents,
our possibilities and our lives are all the property of other men. We are intellectual
prostitutes." “They (the Rockefellers) control most of the important newspapers,
magazines, and book publishing houses in the country, including the Curtis
Publications, the Hearst Publications, Time, the New York Times, the Associated
Press and many others.” — The Elements of Economics, by J.L. Carmichael.

"For more than a century ideological extremists at either end of the political
spectrum have seized upon well-publicized incidents such as my encounter with
Castro to attack the Rockefeller family for the inordinate influence they claim we
wield over American political and economic institutions. Some even believe we are
part of a secret cabal working against the best interests of the United States,
characterizing my family and me as 'internationalists' and of conspiring with others
around the world to build a more integrated global political and economic structure
-- one world, if you will. If that's the charge, I stand guilty, and I am proud of it." -
David Rockefeller, from his Memoirs in 2002.

“The dirty little secret is that both houses of Congress have become increasingly
irrelevant... In case you hadn’t noticed, America’s domestic policy is now being run
by Alan Greenspan and the Federal Reserve Board. Congress is out of the loop...

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America’s foreign policy, mean while, is now being run by the International
Monetary Fund (IMF), with some coaching from the Treasury Department... Here,
too, Congress has become irrelevant. Some senators and House members fussed a
bit when the administration asked for tens of billions of additional dollars for the
IMF. But in the end, the elected representatives came through... And when the
president decides to go to war, he no longer needs a declaration of war from
Congress. He just calls up a few generals, phones Tony Blair in Britain and sends in
the bombers. Have you seen a single congressional hearing or congressional debate
on the U.S.-Iraqi war?” - Robert B. Reich, Secretary of the Treasury.

"Today Americans would be outraged if UN troops entered Los Angeles to restore

order; tomorrow they will be grateful! This is especially true if they were told there
was an outside threat from beyond, whether real or promulgated, that threatened
our very existence. It is then that all people of the world will plead with world
leaders to deliver them from this evil. The one thing every man fears is the
unknown. When presented with this scenario, individual rights will be willingly
relinquished for the guarantee of their well being granted to them by their World
Government." – Henry Kissinger Bilderberg Conference May 21, 1992. "This present
window of opportunity, during which a truly peaceful and interdependent world
order might be built, will not be open for too long. We are on the verge of a global
transformation. All we need is the right major crisis and the nations will accept the
New World Order." - David Rockefeller Sept. 23, 1994. “Out of these troubled times,
our objective, a new world order, can emerge.” George H.W. Bush, September 11th,
1990. It seems as though what is needed is some sort of terrorist attack and/or financial
meltdown and we will have our One World Government.

A Few Curiosities

Federal Reserve Notes never claimed to be “dollars” nor did they even claim to be
“money.” The definition of a dollar is specified in the Coinage Act of 1792. Law defines
a dollar as, “371.25 grains of fine silver." I’m sure everyone has seen a real silver dollar.
Other than that, you probably never have seen a real dollar. The 1929 series of Federal
Reserve notes said: “Redeemable in gold on demand at the United States Treasury, or
in gold or lawful money at any Federal Reserve Bank.” The 1934 series of notes said:
"The United States of America will pay to the bearer on demand (for example) five
dollars." Why would you take this note and change it for five dollars, unless it was not
five dollars. It also said, "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." So the notes were not “lawful money?” In 1963, the “Fed” began to
issue its first series of notes without the promise, while taking notes with the promise out
of circulation. How can paper become what it promises by removing the promise? It now
reads, simply, "This note is legal tender for all debts public and private" meaning just
that - it is what it is, or – “I yam what I yam.” – Popeye, 1936. If you want to know

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what real money feels like, in one hand, hold a silver dollar or, better yet, a double eagle,
a twenty-dollar gold piece. Now, in your other hand, hold the equivalent Federal Reserve
Note. Originally, these items were freely interchangeable. Our dollars used to say that
they were redeemable in gold or silver – and they were. Merchants had paper money
along with gold and silver coins in their registers. Many of us are old enough to
remember our change was always paid in silver and copper (not copper-coated zinc)
coins. Gold coins stopped in 1933, silver coins in 1963, and copper in 1982. Oh, and do
you know why they are called, dollar “bills?” Because they are just like any other “bill”
or I.O.U. that you owe. We Americans, through our government, “borrowed” that money
from the “Fed,” it is part of our national debt and we owe them that dollar back plus
interest. We can barely pay the interest on this debt, which is currently (pre-bailout)
about $475 billion a year.

In 1963, President Kennedy issued paper money from the U.S. Treasury carrying a red
seal, called United States Notes. These are NOT Federal Reserve Notes; they are in fact,
issued by our U.S. Treasury. (You can buy them on Ebay.) Some conspiracy theorists
believe he was killed, like President Lincoln, for having the gall to print money outside of
the Federal Reserve System. June 4, 1963, 5 months before he was killed by a person or
persons unknown, President Kennedy signed Executive Order No. 11110, which
authorized the U.S. Treasury to issue silver certificates against any silver bullion in the
Treasury. I find it unlikely that the Federal Reserve was involved in his murder.
Honestly, there are so many theories about why and who killed Kennedy that he would
have had to be shot about a hundred and fifty times that day for every alleged conspirator
to be guilty. Who killed Kennedy? Simple answer, the C.I.A. But that’s another blog.

"Most Americans have no real understanding of the operation of the international

moneylenders. The bankers want it that way. We recognize in a hazy sort of way
that the Rothschilds and the Warburgs of Europe and the houses of J. P. Morgan,
Kuhn, Loeb and Company, Schiff, Lehman and Rockefeller possess and control vast
wealth. How they acquire this vast financial power and employ it is a mystery to
most of us. International bankers make money by extending credit to governments.
The greater the debt of the political state, the larger the interest returned to the
lenders. The national banks of Europe are actually owned and controlled by private
interests... The accounts of the Federal Reserve System have never been audited. It
operates outside the control of Congress and... manipulates the credit of the United
States." - Sen. Barry Goldwater (R-AZ.)

Conspiracy theorists, like Barry Goldwater, argue that the “Fed” has never been audited.
That is sort of a fact. Although the private accounting company, Price Waterhouse, goes
over the “Feds” books every year and shows us how much money is spent on wages,
benefits, equipment, and clearing our checks, they are not allowed to look at little things

39
like how much money the “Fed” transfers into and out of our country. Federal law
actually excludes several areas from inspections, including (31 USCA §714): “(1)
transactions for or with a foreign central bank, government of a foreign country, or
non-private international financing organization...” The “Fed” can send money
overseas without approval, oversight, or audit by anyone. I figure if the “Fed” wanted to
send vast sums of money to its international banker owners; it would do it by wiring it to
a foreign bank account, not by cutting a paycheck. So, the “conspiracy” theory that the
Federal Reserve is sending billions or even tens of billions of our U.S. tax dollars every
year to “international Bankers.” Well, that theory may or may not be true. By law, we
literally cannot know. Why do you think would there be a law like that?

Here’s something else to consider, according to Federal law, “No Senator or

Representative in Congress shall be a member of the Federal Reserve Board or an
officer or a director of a Federal reserve bank.” No member of Congress, no
representative of the American people, is to have access to the inner sanctum. What do
they fear? U.S. Senators and Representatives form Intelligence Committees charged with
overseeing our country’s deepest, darkest secrets and covert missions, but they are
forbidden, by law, to know what the “Fed” is doing.

Also, according to12 USC 3019, Federal Reserve banks, including the capital stock and
surplus therein, and the Income derived there from shall be exempt from Federal, State,
and local taxation, except taxes upon real estate. Why are they not exempt from real
estate taxes? Because they are not part of the federal government. The Federal Reserve
is the only private corporation that is exempt from federal and state taxes. This
independent “Fed” can refuse to create money if it wants. Professor Seymour E. Harris,
Harvard economist, wrote in the Washington Post, “We cannot afford, in these days of
crisis, the luxury of the Executive going one way and the Fed another. Under
President Kennedy, there were threats of restrictive monetary policy; e.g., at one
point Mr. Martin would VETO the tax cut by not financing the deficit out of
additional money. The Board itself gives too much attention to the wishes of the
financial interests. The banks even more so."

In 1935, the U.S. Supreme Court struck down Roosevelt’s National Recovery
Administration as unconstitutional. According to the Supreme Court, “The Constitution
established a national government with powers deemed to be adequate, as they have
proved to be both in war and peace, but these powers of the national government
are limited by the constitutional grants. Those who act under these grants are not at
liberty to transcend the imposed limits because they believe that more or different
power is necessary. Such assertions of extra-constitutional authority were
anticipated and precluded by the explicit terms of the Tenth-Amendment. The

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powers not delegated to the United States by the Constitution, nor prohibited by it
to the States, are reserved to the States respectively, or to the people.” (You may
recall that this was exactly Thomas Jefferson’s argument against establishing America’s
first central bank.) The National Recovery Administration attempted to put into place the
exact same type of self-serving industrial cartel as was created by the Federal Reserve
Act. The U. S. Constitution is very clear and it does not empower the federal government
to issue un-backed, fiat currency. Somehow, through the “Federal Reserve Act,” Congress
has delegated to private bankers a power that the Congress itself does not have.
Unfortunately, the question of the legality of the “Fed” has never been brought before the
Supreme Court and all these public officials – from the President on down - who have
sworn to “defend the Constitution from all enemies foreign and domestic” continue to
look the other way.

HR 2755, currently in the House of Representatives, calls for the abolition of the Federal
Reserve System. Over 1,500 U. S. cities and organizations have called for the
dissolution of the Federal Reserve. Wright Patman, Chairman of the House of
Representatives Committee on Banking and Currency for 40 years, introduced legislation
to repeal the Federal Reserve Banking Act twenty times. Congressman Henry Gonzales,
when he was Chairman of the banking committee, also introduced legislation to repeal
the Federal Reserve Banking Act nearly every year. It's always defeated. I have provided
you with many quotes from Louis McFadden, Chairman of the House Banking
Committee and Charles Lindbergh (Republican Senator from Minnesota.) - Both actually
attempted to impeach members of the “Fed!” Do these people, people who have intimate
knowledge of the machinations of the Federal Reserve System, know something you and
I don’t? It’s no wonder we are in the dark, the same bankers who own the “Fed” control
the media and give huge political contributions to sympathetic members of Congress.

You know, given the conspiratorial beginnings of the Federal Reserve, its cartel oligopoly
of the U.S. banking industry designed to benefit a few New York Banks, and the
appalling statutory and media secrecy it’s no wonder that otherwise normal people are
convinced that shenanigans are afoot. Go ahead; call it a conspiracy. It is.

A Note about the Bailout

First, let me just quote part of Section 8 of the actual Bailout Bill that passed Congress:
"Decisions by the Secretary pursuant to the authority of this Act are non-reviewable
and committed to agency discretion, and may not be reviewed by any court of law or
any administrative agency." Interesting. (It’s not called “Section 8” for nothing.) I
have to wonder if the Constitution allows the Legislative Branch to concoct a law that
says it cannot be questioned by Judicial Branch. Why would that wording be put into this
bill? Well, in article published in the October 24, 2008 New York Times, the

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newspaper's economic columnist, Joe Nocera, reveals what he calls "the dirty little
secret of the banking industry,” that many banks have no intention of using the
government bailout money to make new loans. As Nocera explains, the plan to hand over
$250 billion in taxpayer money to the biggest banks was never intended to get them to
resume lending to businesses and consumers. Its real aim was to bankroll a rapid
consolidation of the American banking system by subsidizing a wave of takeovers of
smaller financial firms by the most powerful banks. Nocera cites an employee-only
conference call held October 17 by a top executive of J P Morgan Chase, a beneficiary of
$25 billion in public funds. Nocera explains that he was able to listen to a recording of
the proceedings. Asked by one of the participants whether the federal funding will
"change our strategic lending policy," the executive replies, "What we do think, it
will help us to be a little bit more active on the acquisition side or opportunistic side
for some banks who are still struggling." "And I would not assume that we are
done on the acquisition side just because of the Washington Mutual and Bear
Stearns mergers. I think there are going to be some great opportunities for us to
grow in this environment, and I think we have an opportunity to use that $25 billion
in that way, and obviously depending on whether recession turns into depression or
what happens in the future, you know, we have that as a backstop." “We would
think that loan volume will continue to go down as we continue to tighten credit to
fully reflect the high cost of pricing on the loan side.” Nocera notes: “It is starting to
appear as if one of Treasury’s key rationales for the recapitalization program —
namely, that it will cause banks to start lending again — is a fig leaf, Treasury’s
version of the weapons of mass destruction.”

Bankers have been told that bailout money has been given to banks whether they need it
or not so that the public won’t know which banks are in financial need and pull their
money out of those institutions. Sure. Like publicly traded banks don’t all issue
quarterly financial statements. The weak banks use bailout money to help shore-up their
balance sheets and then, when they are fattened-up, the strong banks use their money to
gobble them up.

With the new Bailout Bill, the Federal Reserve Banks are now authorized to pay banks
interest on reserves under Section 201 of the Act. Picture it this way, if banks were
hardware stores, the store owners would be paid interest by taxpayers to stock their
shelves with merchandise. Pretty sweet deal. Anybody want to guess where the “Feds”
get the money to pay the banks this interest? If you said taxpayers, you are correct.

Section 202 permits the Federal Reserve Banks to change the fractional reserve ratio for
banks to ZERO! This means that a bank need not maintain a penny in reserves while
loaning out an unlimited amount. Guess how stable our financial markets will be in the
future. If you guessed infinitely more unstable than our current chaotic condition, you
are correct.

But wait, there’s more. Section 132 allows for the suspension of “mark to market”
accounting for banks. Now, when a bank holds a $1 million mortgage in foreclosure on a
piece of property currently worth $500 thousand, it will still show up on their books as

42
worth a million. With hundreds of these mortgages on their books, just how does an
investor determine which bank shares are worth buying? How does anyone know which
banks are failing and which are doing well?

So, the Bush administration, using the same flourish and sense of immediacy that
accompanied their “War on Terror,” and the Afgan and Iraq wars, once again sends
trillions of taxpayer dollars from working class Americans to the richest of the world’s
rich. There he goes again, spreading the wealth. You don’t have to be steeped in
conspiracy theories to see the pattern here.

Here’s a question for you: Who owns the “Fed?” The last time the shares were audited
(That I can find) was as of 11:05 A.M. on July 26, 1983. As of that date and time, 53% of
the New York Federal Reserve Bank – which controls the “Fed” and represents about one
half of the total assets of the entire system – was owned by 5 banks: Chase, Chemical,
Citibank, Manufacturers Hanover, and Morgan. Since that day, Chemical Bank bought
Manufacturers Hanover in 1991; Chemical merged with Chase in 1996; and Chase
merged with Morgan in 2000. If the shares remained with the holders of record in 1983,
your Federal Reserve System is now controlled (as it has been since the beginning) by
J.P. Morgan Chase (Rothschild and Rockefeller) and Citibank. Citibank is in a very weak
condition, even after having received two bailout packages totaling $45 billion. It still
has a good chance of being taken over by JP Morgan Chase – Using our taxpayer money
to limit competition and monopolize the banking industry.

Speaking of taxpayer money, round two of the current Bailout raises the total
expenditures to about $2 trillion. If we just make it $3 trillion, we could give every man,
woman, and child in the U.S. $10,000 cash to go out and spend our way out of this
looming depression. You know a “spread the wealth” kind of thing. Sure this sounds
crazy, but think about it... Who else would know how to spend the bailout money quickly
and in exactly the right manner to help the most people? Who else deserves this break
but the very people we are counting on to pay the bills? Think of it as a loan to the
taxpayers, to be paid back by the taxpayers. This money would go to pay mortgages, buy
cars, buy food, and yes, buy liquor and drugs. The point is that the money would be put
into circulation very rapidly and ALL the wheels of our economy would be greased
simultaneously. Do you actually think that giving all that money to just a few of the
largest banks makes more sense?

During the presidential campaign, there was a lot of disparaging talk about Obama’s
“spread the wealth” statement. McCain “spinsters” seized upon this “Socialist” talk and
milked it for all it was worth. (Apparently, not much.) Even now, after Obama has been
elected and before he takes office, the Republicans and right-wing “think” tank talking
heads are coming out against his proposals to create jobs for the out-of-workers of
America. “It’ll cost too much,” is the common thread. Where were these guys when

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Bush II was tossing trillion dollar bones to his corporate dogs? They were cheering him
on. Bushes bosses are their bosses too.

The fact of the matter is that we are constantly redistributing the wealth of this country.
Unfortunately, the money goes the wrong way, from the working taxpayers to the rich.
Consider the billions of dollars given to corporations in “no-bid” or sweetheart contracts,
“pork barrel” additions to Congressional bills, and corporate tax “loopholes,” subsidies,
inflated contracts, access to government research, access to public minerals and water,
externalities, and bailouts... all for the benefit of the rich and paid for by the working
class. How do the beneficiaries of all this “Corporate Socialism” repay us struggling
taxpayers? By sending our jobs to foreign lands, hiring illegal aliens, plundering pension
funds, laying-off workers just before they reach retirement age, by merging and
eliminating competition, by price-fixing and collusion, by cutting health benefits, by
instituting usurious fees and penalties on all of our accounts, by externalizing the costs of
pollution and product health risks, and by passing on to consumers everything from the
legal costs of avoiding regulations to buying politicians.

Corporate Socialism privatizes profits but socializes risk. Corporate funding of our
elected “representatives” ensures that these policies will continue unabated, no matter
what the public outcry. What we need is a separation of corporation and state just like
church and state. President Eisenhower’s farewell speech warning Americans about
undue influence of the military-industrial complex was actually shortened from his
original, hand-written notes: “military-industrial-congressional complex.” When I was
much younger, I figured that by the time my generation got into power, there would be no
more wars like Vietnam. I was wrong. The corporate influences in Congress are more
powerful than ever and we are now looking at an Orwellian, “War without end.” The first
logical step in the separation of state and corporation is “Clean Money” elections where
those running for office can use public money for their campaigns or private funds. We
citizens would then have the clear choice of voting for those beholding to corporate
interests or those beholding to public interests. (Google: “clean money elections.”)

What can be done?

So, given our present national fiscal predicament, what can be done? The cure is
relatively simple and painless. The U.S. Government should buy back the Federal
Reserve System for $450 million (As is specified in its “enabling act”), keep everybody
employed doing the same job as they do now in the same buildings, using the same
equipment, and at the same pay. The only difference would be that they would be
working for the U.S. Treasury Department and not a private corporation. Any income
generated from the interest on the U.S. Bills, Notes, and Bonds would be recycled back
into the treasury – just as the current “Fed” is supposed to do. The difference would be
that there would be no secret overseas money transfers. Everything would be open and
above board.

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Next, eliminate the whole circular process of making Treasury instruments, selling them,
paying interest on them, and then buying them back. If the U.S. Government has the
ability to print its own money – and it does – what is the purpose of the Treasury Bills,
Notes, and Bonds? Nothing. The Federal Reserve Banks demand them in exchange for
printing money, but our Government can print its own money without any help from the
“Fed.” We don’t need the Federal Reserve or the Treasury instruments. In fact, the
Treasury Instruments do nothing constructive, they simply tie-up money that could be
used elsewhere. Most government projects funded by the $11 trillion in national debt
have long ago come and gone but we taxpayers continue to pay interest to the Federal
Reserve Banks on the “debt.” If these “dead” instruments were eliminated, there would
be trillions of dollars unencumbered and available for investment in “living” businesses,
real estate, and state and local government bonds. What happens to our national debt if
we retire the Treasury Bills, Notes, and Bonds? It disappears. When we retire the
Treasury instruments, we stop paying interest and we won’t owe anybody anything. The
Treasury simply prints money when needed by Congress, just like the Federal Reserve
currently does, and everything stays the same. Inflation wouldn’t go away, of course, but
it wouldn’t be any worse either. With the “National Debt” gone, we Americans just
might get our Ft. Knox gold back that the “Fed” took as collateral. By eliminating
Treasury Bonds, Notes, and Bills, taxpayers can save about $500 billion every year on
interest payments. Alternatively, we can pay the same in taxes and use that money for
better medical care, education, roads, hospitals, etc. Alternatively, if you are of the “Neo-
Con” persuasion, we could heed God’s call and invade Iran, Syria, North Korea, etc.

The U.S. economy cannot absorb the return of $11 Trillion without serious disruption and
dilution of the dollar (inflation.) The best way to absorb the return of these wayward
funds while controlling inflation is to increase the reserve requirements for loans at
lending institutions. Currently, banks have a 10% reserve requirement on checking
deposits and, essentially, a 0% reserve requirement for savings accounts and CDs. A 10%
reserve requirement means that if your bank takes in $100 in a checking account, it can
loan out $1,000 to somebody else. Your bank simply “creates” another $900 of “money.”
If that sounds bizarre to you, take a minute and think about what a 0% reserve
requirement means. Now, how do you feel knowing that there are so few dollars behind
your bank loan? Behind our entire economy? Currently, banks create about ten times as
much “money” as the Federal Reserve System. Do you think that our economy might be
on a little firmer footing if the reserve requirements were slightly higher – a little more
meaningful? We can control inflation by balancing this infusion of money into our
economy while increasing the reserve requirements of lending institutions. This will not
only stimulate our economy at a time when it is sorely needed, but also fortify our
banking system (at a time when it is sorely needed.) Balance is the key. If we raise the
reserve requirements too little, we risk more inflation... too much, and we will have a
deflationary spiral and depression.

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Who is currently in charge of monitoring the banks’ reserve requirements? The Federal
Reserve. Picture it this way: If the banks were hens, the “Fed” would be the fox. By
absorbing the Federal Reserve System functions into the Treasury Department, where
they rightfully belong, our banks would be monitored, not by their cohorts and
competitors, but by slightly more impartial government officials. Strict, independent
monitoring of banking reserve requirements and interest rates would act as a steady hand
on the tiller of our economy.

How do you control interest rates? In classic free market dynamics, the market sets the
rate. Without “Fed” interference, wouldn’t the market normally take care of the rates
automatically? When there is more money chasing fewer loans, interest rates fall,
stimulating the economy. When more people want to borrow, interest rates go up,
slowing the economy. If the government only pumped in more money to keep up with
increases in production, there would be enough money for the economic system, but not
so much to cause inflation. Extra money could be pumped into the market if the Treasury
felt the need for stimulation outweighed the need for stability – Like now.

To take the place of the Treasury instruments in our money markets, the Treasury can
insure high-grade corporate paper and back the principal and interest with the “full faith
and credit of the United States.” Of course, the interest rate that the issuing corporation
pays investors on these insured notes and bonds would be less than what is paid on their
uninsured debt and this difference would be sent to the Treasury by the corporation as
payment for the insurance. Of course, the debt instruments of more financially sound
companies would have a narrower spread than the lower grade paper. This spread would
no doubt fluctuate over time as the corporation became more or less solvent,
automatically adjusting the price paid for the insurance to the risk involved.

What? The Government can’t insure private paper? We are doing it right now. The
Federal Deposit Insurance Corporation insures your savings account (‘till the end of
2009) up to $250,000. They have $52 Billion insuring $4.3 Trillion in savings. If that is
ever used up, the U.S. Government (taxpayers) will step in and cover the rest for the
bankers. Indy Mac alone cost $9 billion. And what about the current two trillion dollar
banker bailout? Again, that’s the U.S. Government (taxpayers) stepping-in and covering
private paper. As long as we taxpayers are insuring private investments, we may as well
be paid for it by the people who are profiting from our guarantees – expressed or
otherwise.

Whether or not you believe that the “Fed” is set up for the enrichment of the few at the
expense of the many... Even if I have not convinced you of anything so far... “The power
to determine the quantity of money... is too important, too pervasive, to be exercised
by a few people, however public-spirited, if there is any feasible alternative. There is

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no need for such arbitrary power... Any system which gives so much power and so
much discretion to a few men, [so] that mistakes - excusable or not - can have such
far reaching effects, is a bad system. It is a bad system to believers in freedom just
because it gives a few men such power without any effective check by the body
politic - this is the key political argument against an independent central bank.” –
Milton Friedman, Economist.

There’s one more point you should consider: It’s you. It’s you and me and everybody
else. We humans create these institutions, corporations, and governments for our benefit.
We, the people of the United States of America, have all the power. If the Federal
Reserve System does not function to our liking, we have the absolute power to change or
abolish it. We are not on this planet, in this country, at this time, to be anybody’s slave.
"This country, with its institutions, belongs to the people who inhabit it," - Abraham
Lincoln.

I figure we have one last chance to take control of our destiny. With all eyes focused on
our economic plight, if there is ever to be a chance for true reform, that time is now. If
our current situation is “fixed” by the massive infusion of devalued dollars, America’s
attention will quickly return to sports, movie stars, and local crime. If it remains broken,
we will face an economic depression. “It's a recession when your neighbor loses his
job; it's a depression when you lose yours.” - Harry S. Truman. And, as J.P. Morgan
said, “People without homes will not quarrel with their leaders. This is well known
among our principle men now engaged in forming an imperialism of capitalism to
govern the world. By dividing the people we can get them to expend their energies in
fighting over questions of no importance to us except as teachers of the common
herd.”

These villains have always relied upon our ignorance and secrecy to advance their plans.
Right now, you have two choices... awareness or oblivion: Thomas Jefferson, “If a
nation expects to be ignorant and free, it expects what never was and never will be,”
or Doris Day, “Que sera, sera. Whatever will be, will be.” Choose.

Mike Kirchubel - December 2008

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