The Federal Reserve System - Part III

So, in my previous note "The Federal Reserve System - Part II", I spoke of the incident that sparked the thought process that went into the formation of the Federal Reserve System. To quickly recap, this was due to J.P. Morgan falsifying rumors about a competitor and starting the Great Panic of 1907. As Frederick Allen of Life Magazine is quoted, "The Morgan interests took advantage…to precipitate the Panic [of 1907] guiding it shrewdly as it progressed.” It was his response to the fact that smaller banks were beginning to break into the banking industry and take away competition from him, The Rockefellers, The Warburgs, The Rothschields, and Kuhn, Loeb, & Co. They were referred to as "The Money Trust".

So, what happened after The Great Panic? Shortly thereafter, J.P. Morgan, The Rockefellers, and the rest of The Money Trust began doing joint ventures with each other. In other words, they began business ventures as partners and began seeing how beneficial it was to them, because they had a vested interest in keeping the monopoly of the banking industry. While this was taking place, the Senate Majority Whip at the time was Nelson Aldrich. Now Sen. Aldrich cooked up a plan to make sure that the Great Panic of 1907 would never happen again. He decided to set up a meeting with key people to hatch out this new banking plan. The strange thing is, not a single person was notified that he had scheduled this meeting other than the 6 individuals he invited to the meeting. Not a single person in Congress nor the public knew of this meeting. It was because he made it a secret meeting and the 6 individuals he invited were given strict instructions:

1. They were to travel alone and not together to their destination.
2. If they bumped into each other, they were to use first names only.
3. If the press asked them any questions, they were to say they were going duck hunting together.
4. They were not to speak to anyone regarding this meeting under any circumstances.

Now, these six individuals did just that. They arrived at a train station and boarded a box car that was waiting for them to take them south. This was the personal boxcar of Sen. Aldrich. The train took them all the way down to, none other than Georgia and they took a ferry over to Jekyll Island. Over the next several days, they hatched out what would be known as "The Federal Reserve System".

You would ask, who were these men? The first reaction would be that they must be someone who is against the banking industry if they're hatching out a bill to abolish the old Money Trust, right? Well, it turns out the following men were the attendees:

1. Senator Nelson Aldrich – Whip of the Senate & Chairman of the National Monetary Committee. Close business associate of J.P. Morgan. Father-in-law of John D. Rockefeller, Jr. and eventually the grandfather of Nelson Rockefeller, our former Vice President.

2. Abraham Andrew – Assistant Secretary of the Treasury

3. Paul Warburg – He was most important, because he knew the banking dealings in Europe. He was a partner in Kuhn, Loeb, & Company and a Representative of the Rothschild banking dynasty in England and France where he maintained very close working relationships throughout his entire career with his brother, Max Warburg, who was the head of the Warburg banking consortium in Germany and the Netherlands.

4. Frank Vanderlip –He was the President of the National City Bank of New York which was the largest of all of the banks in America representing the financial interests of William Rockefeller and the international investment firm of Kuhn, Loeb & Company.

5. Charles Norton – President of the First National Bank of New York

6. Benjamin Strong – Head of J.P. Morgan’s Bankers Trust Company & would eventually become the first head of the Federal Reserve System.

7. Henry Davison – Senior Partner of J.P. Morgan Co.

You're probably saying, "Liberalhater, you made up the whole thing about the secrecy. Please tell me you're kidding." Well, why don't we see what Frank Vanderlip (one of the attendees and architects of the bill) said about it in the Saturday Evening Post in 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 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. If it were to be exposed publicly that our particular group had got together and written a banking bill, that bill would have no chance, whatever, of passage by Congress.”

These men were the architects that created the Federal Reserve System. You note, above, that Sen. Aldrich was tied to the Morgan's and Rockefeller's. He was using members of The Money Trust to abolish The Money Trust. Why is that?? It's because it was never intended to be abolished at all. It was only to be strengthened while you were decieved into believing it was eliminated. G. Edward Griffin, in "The Creature from Jekyll Island", is quoted as saying, "That was like asking the fox to build the hen house and install the security system.”

Now, I will leave you with a little bit of information about what happened AFTER they wrote this banking bill. Sen. Aldrich took it back to Washington and then campaigned AGAINST THE BILL. Why??? He helped to write it!! Well, it's because everyone at the time knew that he was tied to the banking industry and it made people think that "if a banker is against a banking bill, it must be a good bill so we should pass it". It worked, because on December 22nd, 1913, the bill passed and Woodrow Wilson signed it into law.Woodrow Wilson wrote this after signing the bill into law, "I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation is controlled by its system of credit. Our system of credit is concentrated. The growth of the nation, therefore, and all our activities are in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated Governments in the civilized world no longer a Government by free opinion, no longer a Government by conviction and the vote of the majority, but a Government by the opinion and duress of a small group of dominant men."
Scared yet????

The Federal Reserve System - Part II

Now that I've taken the time to wake you up to some of the shocking facts about the Federal Reserve System, let's take a look at how it all started. This condensed story is all based on facts (which I will cite through my writing) and how it was created, alone, demonstrates how corrupt it was from its' inception. This blog will be in many parts so that you aren't overwhelmed with the reading...

Prior to 1913, banks were privately owned and competed against each other for business. Banks could not loan money to anyone unless they either had an equal amount in their reserves (the actual bank vault) or they were positive they could cover it. If a bank overextended itself, it would go out of business. A perfect example of this is the movie "It's a Wonderful Life". Remember how George Bailey's bank was consantly competing with Mr. Potter's bank? Well in one scene of the movie, you may recall George's uncle losing some cash and George freaking out over it, all the while Mr. Potter was trying to coax George's customers over to his bank for pennies on the dollar. Well, this was a reality. Banks could determine their own interest rates and if someone didn't like it, they could go somewhere else for a better interest rate (now, I realize that is SOMEWHAT the case today, but I'll show later how it's not really the same).

Leading up to 1913, there were a very small handful of major, or superbanks. They were owned by J.P. Morgan, The Rockefellers, the Warburg family, the Rothschield family, and the European stronghold of Kuhn, Loeb, & Company. They literally had a monopoly on the banking industry. They eventually were referred to as "The Money Trust". It wasn't until the turn of the century when smaller banks were achieving greater success at breaking into this industry. This frightened The Money Trust and John D. Rockefeller is quoted as saying, "Competition is a sin".

Therefore, in 1907, J.P. Morgan had all he could stand. He wasn't going to allow these smaller banks to break into the business. So, he publish in several newspapers and even put word of mouth on the street that one of his competitors (The Bank of New York) was running out of cash. Now keep in mind, this was a completely fabricated and false rumor he started. This caused almost exactly what you saw in "It's a Wonderful Life". The people who banked at The Bank of New York panicked and rushed to the bank to make massive withdrawls of their money. Afterall, who wants to hear that their money is gone??? This caused a domino effect and trickled over to other banks and sparked what is known today as The Great Panic of 1907. J.P. Morgan "came to the rescue" (even though he started all of this) and offered to cover the losses of the customers. Thus began, what we will discuss later, the beginning of the idea that formed the Federal Reserve System.

The Federal Reserve System - Part I

Well, I've been pondering writing this note, because I felt like most of you would be bored within the first paragraph. I mean really, who actually finds politics and the Federal Reserve System to be an exciting read? So, why not cut through the boring stuff and post the things that are a real shocker to all of you. I would venture to guess that 98% of Americans don't know the following:

1. What department of the U.S. Government does the Federal Reserve System fall under? The answer is: NONE. It is a privately owned corporation, controlled by a board of bankers, and is contracted to the U.S. Government to handle all money circulation in this country and abroad. I bet you would say, "Well it's called the FEDERAL Reserve." Is Federal Express part of the government?? Don't believe me? Check out the Circuit Court of Appeals case of Lewis v. United States in 1982.
2. Since it is a private corporation, you would assume it pays corporate taxes right? WRONG. It does not have to pay taxes under it's contractual agreement it made with the U.S. Government in the Federal Reserve Act of 1913. Have you ever wondered how much money flows through that corporation??? I would venture to guess it makes Exxon's Profits (that so many of you are complaining about) look like a mom and pop shop.
3. The U.S. Dollar was worth 22 times what it is worth today. Let me put that in perspective for you. A meager $10,000 salary at McDonalds today, would be worth a $220,000 salary if the Federal Reserve System didn't exist. Your $30,000 car you bought would actually only cost you $1,364.00. With me so far?
4. Part of their contractual agreement with us was that they get to control how much they are paid for their services. That's why you hear on the television all of the time about how the Fed Chairman is going to raise or lower interest points. That means he is deciding whether he increases his profit or lowers it.
5. How much do we owe the Federal Reserve System? Currently, our national debt is at $11 Trillion. Today, the Government pays down our debt at a rate EQUAL to the amount of money that the government takes in through income and payroll taxes. This basically means, that if we abolished the Federal Reserve System (thus abolishing the interest and debt), we abolish the need for income and payroll taxes. So, we don't need to replace it with any FairTax or any other tax structure. You would get to keep 100% of your paycheck.
6. Another neat little agreement with the Federal Reserve Act of 1913 states that, at any time, we can opt out of this contract for only $450 Million. That's about $25 per American versus the $36,000 each American owes today. We can restore coining money back to the American People interest and debt free.

Maybe this will wake you up and make you realize who it really is that is raping you each and every day. Barack Obama, George W. Bush, Joe Biden, Dick Cheney, Nancy Pelosi, Newt Gingrich, and all of the rest of the "line walking" Republicans and Democrats don't care, because they get a blank check to spend each and every day when the Federal Reserve creates more money out of thin air. I will leave you with this last thought and let you decide if you're interested in hearing more about the biggest scam on America....That $1 Trillion Stimulus Package that Obama created recently? The Federal Reserve will get paid approximately $10 Billion in profit just for doing NOTHING but changing the books. Wouldn't you love to have a company that pays no taxes and makes profit for doing nothing at all?