Today is the Federal Reserve’s 100th birthday. It’s likely to slip by with little fanfare, though it should be a day that lives in infamy. It’s more destructive than Pearl Harbor. In fact, it made Pearl Harbor — and all wars in the last 100 years — possible.
One hundred years ago today, Congress passed the Federal Reserve Act. The act itself was conceived three years earlier during a secret meeting of moneyed elites and their U.S. Senator/proxy on Jekyll Island, Ga.
The conspirators were Senator Nelson Aldrich, the father-in-law of John D. Rockefeller Jr. (the Standard Oil group); Paul Warburg, a German banker representing the German banking conglomerate MM Warburg of Hamburg, Germany and Kuhn, Loeb & Co. in the U.S.; Henry P. Davison, a partner at JP Morgan and chairman of Bankers Trust Company; Benjamin Strong, vice president of Bankers Trust; Frank Vanderlip, chairman of National City Bank; and Charles D. Norton, president of First National Bank. Bankers Trust, National City Bank and First National Bank were all part of the Morgan group of banks. Vanderlip was also a Rockefeller agent (related by marriage) and was a director of Rockefeller’s railroad and lumber concerns.
Like most all nefarious legislation, the Federal Reserve Act was passed in a rush. Congress was eager to head home for the holidays; so two days before Christmas, there was no stomach in Washington for a lengthy debate on the bill’s merits. In fact, 28 of the 96 Senators had already left Washington. The act passed the Senate 43-25. The act got more support in the House, where 77 of 435 members had gone home. The vote was 298 for, 60 against. President Woodrow Wilson then quickly signed it.
It was also passed based on a false flag event. Propagandists for the legislation cited a desire to prevent a financial panic — like the one that occurred in 1907 — as a reason for its passage. But the 1907 panic was precipitated by two events: inflation created in violation of Department of Treasury statutes and actions by the money trust — a group dominated by the JP Morgan firm and its allies affiliated with Rockefeller, the railroad baron Edward Harriman and Kuhn, Loeb.
Treasury Secretary Leslie Shaw wanted a central bank. Wall Street was pushing for one. Shaw created inflation by depositing Treasury funds in favored large national banks.
The money trust also wanted a central bank, but their primary motive for the creating the panic was to destroy the upstart Frederick Augustus Heinze.
Heinze, along with C.W. Morse, had begun acquiring banks; and the two had incorporated a speculative vehicle named United Copper Company. The money trust called in their loans to United Copper, which set up a run on the Heinze-Morse Mercantile National Bank. It was this action that precipitated the panic. So as is often the case, the group that stood to gain most by the crisis precipitated it and then created the solution.
And while they lobbied for its passage behind the scenes, in public members of the money trust spoke against it and sold it as something it was not. The deception was necessary to fool the public, which was skeptical of a central bank.
The Fed’s creation by the Federal Reserve Act effectively legalized the money trust dominated by Morgan (backed by money from the Rothschild dynasty) and Rockefeller. Today, the Fed continues as a private entity with private shareholders. There is nothing Federal about it. It is a monopoly over which Congress has little control. It cannot even be fully audited by Congress or the Federal government even though it ostensibly controls all U.S. gold deposits.
What the Federal Reserve Act did was legalize theft.
The Federal Reserve was given a monopoly on the issue of all bank notes and all national and State banks could then issue only deposits. All deposits had to be redeemable in Federal Reserve notes. All national banks were required to become members of the Federal Reserve System.
As Murray Rothbard wrote in The Case Against the Fed, all “national bank reserves had to be kept in the form of demand deposits, or checking accounts, at the Fed. The Fed was now in place as lender of last resort; and with the prestige, power, and resources of the U. S. Treasury solidly behind it, it could inflate more consistently than the Wall Street banks under the National Banking System, and above all, it could and did, inflate even during recessions, in order to bail out the banks. The Fed could now try to keep the economy from recessions that liquidated the unsound investments of the inflationary boom, and it could try to keep the inflation going indefinitely.”
“At this point, there was no need for even national banks to hold onto gold; they could, and did, deposit their gold into the vaults of the Fed, and receive reserves upon which they could pyramid and expand the supply of money and credit in a coordinated, nation-wide fashion. Moreover, with reserves now centralized into the vaults of the Fed, bank reserves could be, as the bank apologists proclaimed, ‘economized,’ i.e., there could be and was more inflationary credit, more bank ‘counterfeiting,’ pyramided on top of the given gold reserves. There were now three inverted inflationary pyramids of bank credit in the American economy: the Fed pyramided its notes and deposits on top of its newly centralized gold supply; the national banks pyramided bank deposits on top of their reserves of deposits at the Fed; and those state banks who chose not to exercise their option of joining the Federal Reserve System could keep their deposit accounts at national banks and pyramid their credit on top of that. And at the base of the pyramid, the Fed could coordinate and control the inflation by determining the amount of reserves in the member banks.”
Inflation is theft. When new money is created, the elites get to use it before it gets into the economy and dilutes the buying power of the money you hold. Not one person in a million understands this, and they buy into the government’s lie that inflation is necessary for a sound economy. They believe that inflation is rising prices. It is not.
Since the Fed’s creation the dollar has lost 96 percent of its value. It’s driving fast toward complete worthlessness.
In his book, What You Should Know About Inflation, Henry Hazlitt wrote, “Inflation is the increase in the money supply and credit. The word ‘inflation’ once applied only to the quantity of money. It meant that the volume of money was inflated, blown up or overextended… As the money supply is increased, people have more money to offer for goods. But if the supply of goods doesn’t increase — or increases at a slower pace than the money supply — the prices of goods goes up. Each individual dollar becomes less valuable because there are more dollars available. This leads to more of them being offered for a commodity. A ‘price’ is an exchange ratio between a dollar and a unit of goods. When people have more dollars, they value them less. Goods then rise in price, not because there are fewer goods than before, but rather because there are more dollars available.”
Anything that artificially increases aggregate demand for goods and services is inflation. It could be lowering interest rates, increasing credit or money printing, as the Fed has been doing with its so-called quantitative easing.
This is the uncomfortable truth the money creators don’t want you to know. They hide it because it keeps interest rates on national borrowing low; it allows the government to keep Social Security and other welfare payments and cost of living increases low; it allows the Fed to keep interest rates low for borrowers so as to encourage a phony expansion of a debt-dependent economy; and it props up the stock market, which helps Wall Street and gives the illusion of prosperity.
Inflation — which is really devaluation of currency — is the perfect crime. The money creators steal the purchasing power of your paper money no matter where it is. They do this by pouring more water in the milk — diluting the value of all paper money by printing more. It is nothing more than a hidden tax.
For this, you can thank the Fed. Very unhappy birthday wishes to it.
Additional sources: The Federal Reserve Conspiracy, by Antony C. Sutton.
The Creature from Jekyll Island, by G. Edward Griffin.
The Federal Reserve Hoax, by Wickliffe B. Vennard, Sr.
Note from the Editor: As a reader you deserve to know the truth behind the economic disaster America faces. I’ve arranged for readers to get free copies of two books that reveal the sinister plot by the US Government to steal our wealth—a plot Merrill Jenkins, Sr. (the Original Monetary Realist) tried to expose at great risk. His books are hard to find, but these books include rare transcripts from his lectures. Click here for your free copies.Author: Bob Livingston Source: personalliberty.com
Ian jones Tuesday, 03 June 2014 03:36 Comment Link
Do something about it. Write to your congress person.Report
What can we do? Make them put there money inside the company shares and they can only take out 10% a year over 10 years. This will make them think before they steal so much.
Kerry Hay Friday, 07 March 2014 05:59 Comment Link
Passing the Private Federal Reserve Act of 1913, Fed bill "HR 2755" was and always has been invalid. Abolish the Federal Reserve Act of 1913 because it was never constitutionally valid in the first instance. At the illegal passing of this Bill in the House, every member of parliament should have been present, this was not so, which cancelled the vote unconstitutional. These elite crooks should all be rounder up and thrown behind bars for the rest of their worthless lives without legal representation. They had JFK murdered to stop anyone from doing the same when Kennedy signed the executive order to abolish the Federal Reserve Act of 1913, it's still valid today.Report