Federal Reserve Conspiracy
This currency-lender conspiracy is as old as Babylon. Even in America it dates far back before 1913 - the year the Federal Reserve was established opening door to complete economic conquest of America. The Federal Reserve conspiracy is old enough to allow time for agents of this system to infiltrate positions of power as newspaper publishers, editors, columnists, church ministers, university presidents, professors, textbook authors, attorneys, accountants, labor union leaders, movie makers, radio and TV commentators, politicians, school board members, judges, U.S. Presidents and many others
Robert Hemphill, Credit Manager for the Federal Reserve was quoted as saying,
“This is a staggering thought. We are completely dependent on the commercial Banks. Someone has to borrow every dollar we have in circulation, cash or credit. If the Banks create ample synthetic money we are prosperous; if not, we starve. We are absolutely without a permanent money system. When one gets a complete grasp of the picture, the tragic absurdity of our hopeless position is almost incredible, but there it is. It is the most important subject intelligent persons can investigate and reflect upon. It is so important that our present civilization may collapse unless it becomes widely understood and the defects remedied very soon.
When speaking of the stuff our economy runs on (money) economists use the word “create” when speaking of the process by which paper currency comes into existence. “Creation” means making something that did not exist before. Lumbermen make boards from trees, workers build houses from lumber, and factories manufacture automobiles from metal, glass, and other materials. But in all these cases they did not create. They only changed existing materials into more usable and more valuable forms. Not so with currency. Here we actually create something out of nothing. A piece of paper of little value is printed so it becomes worth a piece of lumber. That difference in value is literally created out of nothing. And with different numbers printed on the piece of paper, it can buy the automobile or even the house. The value of the paper has been created in the true sense of the word.
THE GREAT AMERICAN SHELL GAME
The inner workings of the United States money system begins with the U.S. Treasury printing bonds. These bonds are exchanged for Federal Reserve Notes – for which the printing cost is about $20.62 per 1,000 bills, costing the same irrespective of the denomination. In other words the cost of printing a $1 note is about the same as for a $100 note: about .0206 cents per bill.
The Federal Reserve “buys” the Treasury Bonds from the U.S. Treasury using the Federal Reserve Notes. The Federal Reserve Notes are then deposited into a bank and that is how new money is created and added to the money supply. This transaction is an oversimplified generality for in reality this transaction would occur electronically with no paper used at all. In fact only 3% of the US money supply exists in physical currency. The other 97% exists in computers alone. The government uses the currency to pay for the agreed upon programs and ever expanding obligations. The U.S. Government has now indebted the American people to the Federal Reserve bankers for the printed money plus the interest.
Treasury Bonds are essentially instruments of debt. The Federal Government now owes the Federal Reserve the equivalent of the Federal Reserve Notes or money. That money now becomes part of that banks reserves as with all deposits and only 10% of that amount is kept in reserve the rest can be used as the basis for new loans. But this 90% is now created on top of the existing money supply. In other words – if the original amount of the Treasury Bond was 10 billion and the Federal Reserve handed over 10 billion which was then put in a bank as a deposit then an additional 9 billion could be deposited on top of that for loans bringing the total amount of money in circulation 19 billion dollars created from thin air. This is how the money supply is expanded.
Banks do not actually pay out loans from the money on deposit otherwise no new money would be created which is the entire purpose because money represents debt. The bank accepts promissory notes or Loan Contracts in exchange for credits or money added to the borrowers transaction account. In other words if somebody walked into the bank and borrowed the newly created 9 billion dollars and deposited into the bank – ten percent would be isolated as reserves and 8.1 billion becomes newly created money available for loans. Eight point one billion can then be loaned out and redeposited and then putting aside 10% 7.290 can be loaned then 6.561 billion then 5,9049 and so on.
This deposit-money-creation-loan cycle can technically go on to infinity. Theoretically the Fractional Reserve System can create nine times the amount of the original loan or 90 billion from 10 billion. What is actually giving the money value is the money that already exists. The new money essentially steals money from the existing money supply. For the total pool of money is being increased irrespective to demand for goods and services. And as supply and demand finds equilibrium prices rise diminishing the purchasing power of each individual dollar. This is generally referred to as inflation and inflation is essentially a hidden tax on the public. The Fractional Reserve System of Monetary Expansion is inherently inflationary. For the act of increasing the money supply without there being a proportional expansion of goods and services in the economy the end result will always cause a debasement of currency.
A dollar in 1913 requires $21.60 in 2004 to match its value. That is a 96% devaluation in the 94 years since the Federal Reserve has been in existence. The more debt there is the more money there is and reversely the more money there is the more debt there is – every dollar in your pocket is owed to somebody. This even get more absurd when you understand if everyone including the government paid off their debt there would not be one dollar in circulation.
The last time the debt was paid off was in 1935 when Andrew Jackson closed the Central Bank that preceded the Federal Reserve. Jackson stated at one point,
“The bold efforts the present bank has made to control the Government…are but premonitions of the fate that awaits the American people should they be deluded into a perpetuation of this institution, or the establishment of another like it.”
Unfortunately his message was short lived and the international bankers succeeded to install another central bank in 1913 – the Federal Reserve. And as long as this institution exists perpetual debt is guaranteed. Out of all this people are forced to compete for labor to make ends meet.
This process has been going on since 1913, the people are now indebted to the bankers to the tune of trillions of dollars. The people are taxed billions of dollars each month just to pay the interest on this “national debt.” With both the principal and the interest climbing every month, there is no hope of ever paying off this “debt.” The working people of the United States now “owe” approximately 300 banking families and their consorts more than the assessed value of all the assets in the United States. And realize, the bankers got all this for the cost of paper, ink, and bookkeeping.
In order to grasp this concept, imagine yourself in a poker or dice game. Everyone has to buy chips (the medium of exchange) from a “banker” who does not risk chips in the game, but watches the table and every hour reaches in and takes 10% to 15% of all the chips on the table. As the game progresses, the number of chips in the possession of each player will go up and down with his or her “luck.” However, the total number of chips available to play the game (carry on business and trade) will decrease steadily, while the “banker’s” mountain of chips just grows and grows.
The game will get low on chips, and some players will run out. If they want to continue to play, they must buy or borrow more chips from the “banker.” The “banker” will sell (lend) the player more chips only if the player signs a “mortgage” agreeing to give the “banker” some real property (car, home, farm, business, etc.). If the payments should go into default, the banker takes the property. The payments must be made on time, whether the player wins (makes a profit) or not.
It is easy to see that no matter how skillfully the player – eventually the “banker” will end up with all of the chips. Except for the very best or “luckiest” players, the rest, if they stay in the game long enough, will end up owing to the “banker” their cars, their homes, their farms, their businesses, and perhaps even their watches, rings, and the shirts off their backs!
In recent years bankers have added more “cards” to their game. “Credit” cards are promoted as a convenience and a great boom to trade. Actually, they are ingenious devices by which bankers collect 2% to 5% of every retail sale from the seller and 18% or more interest from buyers. A real stacked deck and a hidden tax on consumers.
Our real-life situation is much worse than any poker game. In a poker game no one is forced to go into debt, and anyone can quit at any time and keep whatever he or she still has. But in real life, even if an individual personally borrows little from the bankers, the local, state, and federal governments borrow billions in the name of its citizens, squanders it, then confiscates earnings to pay back the bankers with interest. We are forced to play their game, and it seems we can only leave the game by dying. We pay as long as we live, and our children pay after we die. If we cannot pay, the same government sends the police to take our property and give it to the bankers. The bankers risk nothing (at least, the Federal Reserve bankers) in the game; they just collect their percentage and “win it all.” In Las Vegas all the games are “rigged” to pay the house (owner) a percentage. They rake in millions. The Federal Reserve bankers’ “game” is similarly rigged, and it pays off in billions.
- In 1910 the U.S. federal debt was $1,147,000,000 – $12 per citizen. State and local debts were practically non-existent, and government was small and not oppressive.
- By 1920, after only six years of the Federal Reserve handling our currency, the federal debt had jumped to $24 billion – $228 per citizen. The Federal Government began to grow like an invisible cancer in its early stages.
- By 1968 the federal debt had jumped to $347 billion – $1,717 per citizen. Ten years later, by 1978 it had doubled again to $763 billion – $3,500 per citizen. That is a debt of $17,500 for every family of five in America. Federal debt has been growing faster and faster since. And the Federal Government has become a debilitating cancer rapidly sapping and weakening its victim.
- Today in 1992 the federal debt is over $4 trillion. (And they “cook the books” on the low side to come up with that figure) The $4 trillion national debt amounts to $16,000 per citizen, or $80,000 per family of five. And if that debt were calculated in terms of working or tax-paying families, it would be considerably higher. The Federal Government has become a bloated, out-of-control parasite, a terminal cancer. The economy seems so weak that even after many months of blowing up the currency supply there are no signs of recovery and the entire system may be on the brink of complete collapse.
The above figures do not include state, municipal, school district, business, or personal debts, which total an additional $3 trillion. Total debt in America is thus over $14 trillion – $54,000 per citizen – $240,000 per family of five. This is more than four times the assessed value of all the land and buildings in America. Effectively all of America has been signed over to the bankers. They can take America and we would still owe them another America!
Inventor Thomas Edison gave this analogy of the current market system;
“…for the loan of $30,000,000 of their own money the people of the United States should be compelled to pay $66,000,000 — that is what it amounts to, with interest. People who will not turn a shovelful of dirt nor contribute a pound of material will collect more money from the United States than will the people who supply the material and do the work. That is the terrible thing about interest. In all our great bond issues the interest is always greater than the principal. All of the great public works cost more than twice the actual cost, on that account. Under the present system of doing business we simply add 120 to 150 per cent, to the stated cost.”
THE FEDERAL RESERVE SYSTEM
“The Congress shall have power… to coin money, regulate the value thereof… “
In 1913 Congress passed the “Federal Reserve Act,” relinquishing that power – handing the power to create and control money over to the Federal Reserve Corporation, a private company owned and controlled by bankers. The word “Federal” was used only to deceive the people. The term “central bank” was carefully avoided. The Federal Reserve Act created a Board of Directors (the Federal Reserve Board) to run the Federal Reserve Corporation with a monopoly to create and control the currency of the United States.
This infamous legislation was accompanied with appropriate fanfare and propaganda claiming it would “remove money from politics” and “prevent boom and bust from hurting our citizens.” The people were not told then, and many still do not know today, that the Federal Reserve Corporation is a private monopoly controlled by bankers, operated for the financial gain of the bankers at the expense of the people.
Since that day of infamy a small group of privileged people who lend us “our money,” have accrued to themselves all of the profits of printing paper currency – and more! Since 1913 they have created trillions of dollars in currency and credit which as their own personal property, they then lend to our government and essentially its people, with interest. “The rich get richer and the poor get poorer” has become the secret policy of U.S. national ecomomic policy.
The main architect of the Federal Reserve System was Paul Moritz Warburg, who came from a famous German banking family. The kingpin who steered the Federal Reserve Act through Congress was Senator Nelson Aldrich, Chairman of the Finance Committee. He was the maternal grandfather of Nelson A. Rockefeller, of Standard Oil and Chase Manhattan Bank. Aldrich’s daughter, Abby Greene Aldrich, married John D. Rockefeller, Jr. in 1901. At the time, many people regarded Senator Aldrich as the Rockefeller family’s mouthpiece in the Senate.
Milton Friedman, one of the key economists respected and listened to in Universities and the world died in 2006, but before he did he said,
“The stock of money, prices and output was decidedly more unstable after the establishment of the Federal Reserve System than before. The most dramatic period of instability in output was, of course, the period between the two wars, which includes the severe [monetary] contractions of 1920-21, 1929-33, and 1937-38. No other 20-year period in American history contains as many as three such severe contractions. This evidence persuades me that at least a third of the price rise during and just after World War I is attributable to the establishment of the Federal Reserve System… and that the severity of each of the major contractions is directly attributable to acts of commission and omission by the Reserve authorities. Any system which gives so much power and so much discretion to a few men, so that mistakes – excusable or not – can have such a far reaching effect, 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.”
ECONOMIC DEJA VU
Milton Friedman declared that “the Federal Reserve definitely caused the Great Depression by contracting the amount of currency in circulation by one-third from 1929 to 1933.” To which Congressmen Louis T McFadden added,
“It [the depression] was not accidental. It was a carefully contrived occurrence worked out as one works out a mathematical equation. The international bankers sought to bring about a condition of despair here so that they might emerge as the rulers of us all.”
The Federal Reserve bankers, the source of America’s currency and credit, reduced the currency supply by refusing loans to stable and growing industries, stores, and farmers. At the same time they demanded payment on existing loans. They also increased interest rates. Currency was rapidly taken out of circulation and was not replaced. America was put in a depression and in deep trouble. Goods were available to be purchased, jobs waiting to be done, but little currency was available. Twenty-five percent of workers were laid off. Banks took possession of tens of thousands of farms and businesses through foreclosure. Gloom settled over America.
In 1791 Founding Father Thomas Jefferson predicted,
“If the orgies of unrestrained speculation are permitted to spread, the ultimate collapse is certain not only to affect the speculators themselves, but to bring about a general depression involving the entire country.”
Both the inflation and the deflation and causing the depression, had been planned – as predicted by Jefferson in 1791. The depression lasted until 1939 when the Federal Reserve System began to send large amounts of currency into circulation for military preparedness. As soon as the currency supply went up, people were hired back to work, farms sold their produce instead of plowing it under, mines reopened, factories began to hum, both industrial and residential construction began anew, and the “Great Depression” was over. Some politicians were blamed for it and others took credit for ending it. The truth was that bankers caused it and bankers ended it. The people were never told that simple truth. The bankers who “manufacture” and “control” our currency have used their huge profits to “buy” our politicians, and ultimately to control our government.
THE AXIS OF EVIL
The main relevance of The Great Crash of 1929 to the great crisis of 2008 is that in both cases, the government knew what it should do and both times, it declined to do it. In the summer of 1929 a few stern words from on high, a rise in the discount rate, a tough investigation into the pyramid schemes of the day, and the house of cards on Wall Street would have tumbled before its fall (The Great Depression) destroyed the whole economy.
In 2004, the FBI warned publicly of “an epidemic of mortgage fraud.” But the government did nothing, and less than nothing, delivering instead low interest rates, and like 1999 deregulating, clear signals were being sent to Wall Street that laws would not be enforced. The signals were not subtle: on one occasion the director of the Office of Thrift Supervision came to a conference with copies of the Federal Register and a chainsaw. There followed every manner of scheme to fleece the unsuspecting American people.
The richest US corporations had more to do with causing the current crisis and benefiting from the government bailouts than most US businesses. The richest US individuals have gained far more wealth over the last 30 years than the rest of the population. They can and should bear the major burden of funding the government’s efforts to overcome current crisis – the mass of people have already borne the bulk of the pain caused by the crisis in a huge unemployment problem, a massive home foreclosure crisis, greater job insecurities and lower job benefits..
The mass of people have already watched the bulk of the government’s response benefit the largest banks and various collapsing corporations such as AIG and GM while little was done to end unemployment or foreclosures. It would be utterly unjustified now to place the burden of paying for the government’s response on those who benefited the least from it. The strategy that brought about The Great Depression is the premise of the new plan in Washington. The work of President Obama’s Deficit Reduction Commission and of leaders in both parties point exactly in that unjustified direction.
THE PLUNDER OF AMERICA
The very wealthy have taken control of America not though votes but through manipulation and deception. The wealthy have no allegiance to the country that was built on the backs of the rapidly disappearing middle class. The economic policy to bleed America has left the country teetering on the brink of economic collapse and has all but decimated the Bill of Right. Tax cuts alone would amount to more money than the stimulus and TARP and Afghan and Iraq combined—almost a trillion dollars in ten years. So you could say we’re in a hole looking for a shovel rather than a rope. In the meantime, they’re not discussing a poverty cut.
- Now 59 million Americans have no health insurance and that number is rising.
- Forty-nine million are now in poverty.
- The highest food stamp allocation, 41 million, ever.
And so, while the subsidized wealthy are splurging in their wealth (because they were subsidized) there is a growing body of unemployed people. The two million Americans cannot get unemployment benefits, cannot pay their house notes, cannot keep their children in school are a growing number. And so, we must use a rope to climb this hole, not another shovel. We need a war on poverty. We need to invest in people. Detroit in 2010 had 90,000 vacant homes or abandoned lots. The bail out of GM resulted in 60 percent of GM now owned by the U.S. government. The number one market for Buick is China and while there is not one minority dealership in Detroit Ford is putting another hundred dealerships in China.
In Congress there are 261 millionaires subsidizing themselves with favorable legislation of which the tax cut would essentially be a conflict of interest. Some of them still want to blame the workers for the crisis that we now find ourselves in. Their votes go to handle the globalized capital but not globalized human rights of workers’ and woman. It has an impact upon health care, upon education, upon productivity. If there were a plan for reconstruction, those abandoned homes, where you need weatherization, and you need planers and glaziers would put people back to work. It is possible to work our way out of this crisis.
NARROWING THE PLAYING FIELD
“The power to control information is a major lever in the control of society. Giving citizens a choice in ideas and information is as important as giving them a choice in politics. If a nation has narrowly controlled information it will soon have narrowly controlled politics.”
When a few informed and concerned people or organizations who know the truth begin to expose the bankers and their agents, or try to stop any of their mad schemes, the messengers are ridiculed and smeared as “right-wing extremists,” “super-patriots,” “bigots,” “racists,” “fascists,” or “anti-semites.” Any name is used to discredit them, and to stop other people from listening. Books and articles such as you are now reading are kept out of schools, freedomries and book stores.
Some, who are especially vocal in their exposure of the treasoness acts committed against our people, are harassed by government agencies such as the IRS, FDA, EPA, OSHA, and others, causing them financial loss or bankruptcy. Sometimes their businesses and homes are violently raided at gunpoint, and their money, currency, equipment, and records confiscated, so it is very difficult, if at all possible to continue their business.
Using these methods, the Federal Reserve bankers and their agents have been completely successful in preventing most Americans from learning the things you are reading in this report. However, in spite of control of information more and more citizens are learning the truth. Therefore, to prevent retaliation and armed resistance to their plunder of America, a campaign was initiated to register all firearms and eventually disarm all citizens. The plan is to eliminate all guns that are not in the hands of the government police or army.
PASSING THE BUCK
Although there has never been a court case that challenged the legality of the Federal Reserve System, there was a challenge to the National Recovery Act or NRA, which was ruled unconstitutional. The ruling in the 1935 was the U.S. Supreme Court case of “Schecter Poultry vs The United States of America” made it illegal to pass off its duties to another, in the Justices own words, “Congress may not abdicate or transfer to others its legitimate functions.” Article I, Section 8 of the U.S. Constitution states, “The Congress shall have power… to coin money, regulate the value thereof… a power given none other than the US Congress not the Fed. By passing the Federal Reserve Act, Congress abdicated its constitutionally legitimate function of issuing and controlling money.
“money is much too serious a matter to be left to the central bankers.” Clemenceau
The costs of our military budget is not free. The S&L Crisis of the eighties and the nineties was used as a justification for more bailouts to prop up the failing Federal Reserve. Keep in mind the annual interest on a debt of fourteen trillion is over $875 billion. During the S&L Crisis the American public were forced to come up with between $200 billion and $500 billion to “save” the S & L institutions. All this for only one reason: to protect and perpetuate a fundamentally flawed system whose only object is to enrich and empower the Federal Reserve bankers.
During the last few years America has become by far the largest debtor nation of the world. And our politicians have made their “contributions” with boundless “generosity” – as John Danforth, Republican senator from Missouri, was reported in the Arizona Republic of April 21, 1992 as follows:
“I have never seen more senators express discontent with their jobs. … I think the major cause is that, deep down in our hearts, we have been accomplices to doing something terrible and unforgivable to this wonderful country. Deep down in our hearts, we know that we have bankrupted America and that we have given our children a legacy of bankruptcy. … We have defrauded our country to get ourselves elected.”
Essentially the Fed is an elaborate ponzi scheme that is no more than legalizing counterfeiting. Nothing more than a pyramid scheme that filters money from the bottom of the pyramid to the top. This is an observable phenomena and as a result of this mechanism their is a stifling of economic growth in this country.