The whole thing should have been revealed as a scam right from the start when Paul Warburg was appointed to the first Federal Reserve Board. We were supposed to believe that he gave up $500,000/year for a mere $12,000. Maybe worse is that the first Chairman of the New York Federal Reserve Bank during the crucial early years was none other than Benjamin Strong of the Morgan interests. Yes, the same Strong that was present among the cohorts at Jekyll Island while the whole system was created.
How powerful is our “central bank”? The Fed controls our money supply and our interest rates, and thereby manipulates the entire economy – creating inflation and deflation, recession or boom, and sending the stock market up or down on a whim. The Federal Reserve is so powerful that Congressman Wright Patman, Chairman of the House Banking Committee, maintains:
In the United States today we have in effect two governments…We have the duly constituted Government…Then we have an independent, uncontrolled and uncoordinated government in the Federal Reserve System, operating the money powers which are reserved to Congress by the Constitution.
The Federal Reserve System was sold to the American public as an absolute guarantee that there would no longer be boom and bust economic cycles. They promised steady growth and perpetual prosperity. They vowed to control inflation and to maintain an elastic currency as to prevent bank runs like the ones that occurred during the artificial banking panics. Charles Lindbergh Sr. accurately predicted that “From now on depressions will be scientifically created.”
Once established, the international bankers used the Fed to create alternate periods of inflation and deflation. Thus, whipsawing the public for vast profits. Having built the Fed as a tool to consolidate and control wealth, the Federal Reserve expanded (inflated) the money supply by 62% between 1923 and 1929. Much of this wealth was used to bid up the stock market to dizzying heights. During this same time, enormous amounts of credit money were being made easily available. Then Montagu Norman, Governor of the Bank of England, came to Washington D.C. on February 6, 1929, to meet with then Secretary of the Treasury, Andrew Mellon.
Immediately after this mysterious visit, The Fed board reversed its “easy money” policy and began to raise the discount rate. The balloon that had been allowed to inflate relentlessly for nearly seven years was about to pop. Then on October 24th, the shit hit the fan. William Bryan described the resulting scenario in his book, The United States’ Unresolved Monetary and Political Problems:
When everything was ready, the New York financiers started calling 24 hour broker call loans. This meant that the stock broker 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, and bank runs soon exhausted their coin and currency and they had to close. The Federal Reserve System would not come to their aid, although they were instructed under the law to maintain our elastic currency.
The investing public lost big, but insiders were out of the market and were able to buy back stocks at ninety percent discount from their former highs. The same booms and bust have been maintained and controlled by the Fed ever since. Since Woodrow Wilson took office and created the Federal Reserve System our National Debt has risen from 1 billion to a whopping $16 trillion! Our nation’s gold has been mortgaged to European central banks and all of our silver has been sold. The total amount of interest paid to the international bankers is staggering, with interest becoming an increasingly growing item in the Federal budget. It is just 6.5% of total spending, but that’s $248 billion — enough to pay for ten Justice Departments. However, by 2022, interest payments on the debt is projected to quadruple to $826 billion, double all non-security discretionary spending. It will also be the fourth largest budget item, after Social Security ($1.361 trillion), Medicare ($908 billion), and defense spending ($856 billion).
This next part gets wordy and confusing, but that’s what they want. Keep in mind that the Fed prints and lends money that it creates out of thin air. THE FEDERAL RESERVE SYSTEM IS A SCAM! Money is created in a four step process:
- The Federal Open Market Committee approves the purchase of U.S. bonds (federal IOU’s) on the open market.
- The Federal Reserve buys these bonds from whoever sells them on the open market.
- The Fed pays for these bonds with electronic credits, based on NO MONETARY VALUE, that appear in the sellers bank account.
- Banks then use these valueless deposits as reserves, against which they can lend to NEW borrowers equaling as much as 10 times the amount of their reserves, with interest!
NO KIDDING! President Ronald Reagan assembled the Grace Committee to study the money flow of federal tax dollars in hopes of finding ways to trim waste. The panel’s report stated, “100 % of what is collected [through federal income tax] is absorbed solely by the federal debt [to the Federal Reserve Bank]…All individual income tax revenues are gone before one nickel is spent on the services that taxpayers expect from government.” On top of the interest we pay the Federal Reserve, we paid them direct, when we bailed out their very own private, failing banks!
To get out of this mess we need to get our fiscal situation in order. A good first step is to eliminate the interest payments that we pay the Fed to print our money. Under the Constitution, it is Congress that has the authority “To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures; To provide for the Punishment of counterfeiting the Securities and current Coin of the United States.” [every President who has attempted to issue interest free money has been assassinated, but that's a different story] If we solve the money monopoly problem by putting an end to the Fed, we will solve many other problems at the same time. Essentially, we will take away from our government the capacity to use financial trickery to expand without limit. It would be the first step to restoring constitutional government. Ultimately, without the Fed, the federal government MUST live within its means…
