The Federal Reserve is neither federal nor a reserve; it is a Loan Shark operation to keep America in Debt. First, let’s look at what the Federal Reserve is and how it came into existence then we’ll look at why this is important to them and a really bad deal for us.
There has always been a “Central Bank” (Federal Reserve) to fund, you guessed it… WAR. The Kings of Europe usually needed money to fund their activities to rid the world of infidels or to gain more territory for their kingdom. If you were a King and needed to fight the good war for Christianity but didn’t have the funds to field an army for the local “Big Bank” would loan the money for the activity. This allowed you to follow your god into war or to take over more land to increase the tax base. When you conquered your adversary you would loot their treasury and repay the bank with interest. The remaining loot would increase you personal holdings and make more wars possible. They down side would be to lose the war. You still owe the bank for the loan and interest. If you had a great army you could almost guarantee a victory. This means that you are a good risk to the bank. If you lost, the bank would take over control of the kingdom. The bank would not replace the king, but would now have financial leverage which allowed them increasing control. Eventually, the kingdom was bank controlled.
These large banks financed the expeditions of Columbus and other explorers that discovered the “New World” while attempting to find that new and shorter route to the eastern countries. These loans paid for or financed the majority of these trade activities. Merchants had money in the banks, and like today, money on deposit makes you a good risk for bigger loans. Borrowing against your own assets is always preferable to an ‘unsecured’ loan. Things often do go wrong and when they did the banks would take control of the merchants by exerting pressure against the debt. This gives the debt holder enormous power over the debtor and whatever business they had.
The Central Bank in the Americas was a British concept, since they were the ones that financed the infestation of these shores with the first real colonists; they controlled the debt so they received the tax on all products. Our first attempt at fiscal freedom was our printing of “Colonial Script” for the exchange of goods and services. Since this was not under the control of the Bank of England fought several battles to abolish this “taxation without representation” and become a sovereign nation. The Bank of England reportedly financed the burning of Washington DC as punishment for our attempts at fiscal freedom. Benjamin Franklin claimed that the Revolutionary War was fought for this very reason. The fight was not over the tea tax but our right as a nation to print and control our own currency (money) thus the control of our own destiny.
When we successfully ceded from England and gained our sovereignty we were a prosperous nation for a time. We had everything that we needed to continue our growth. England however, wanted to regain control of the colonies and insisted that we pay our debts in gold rather than colonial money. They refused payments for our debts unless they were paid in English Pounds or in gold. The result is another story. It should be sufficient to know that these attempts at control were driven by the Bank of England – England’s Central Bank.
The power in the Bank of England or any other bank is not their control of cash or gold, but their control of the debt. If you control the debt you control the person. If you control the person you control the country, etc. Controlling the debt also means that you control the flow of currency (money) at the source.
With the release of the documentary “Inside Job” and the approach of the anniversary of JFK assassination (refer to the executive order in June 1963 stripping the Fed of its authority), I thought this article to be relevant and I find this very example proves my point.
“The ignorant among us will say we have laws, rules and regulations protecting our monetary system. Enter Granddaddy Amschel Rothschild stating, let me control the currency of a nation, and I care not who makes its laws.”
~ Facts about ‘The History Of Central Banks In The United States’ ~
Today, most American students don’t understand what a central bank is, much less that the battle over central banks is one of the most important themes in U.S. history. The truth is that our nation was birthed in the midst of a conflict over taxation and the control of our money.
Central banking has played a key role in nearly all of the wars that America has fought. Presidents that resisted the central bankers were shot, while others shamefully caved in to their demands. Our current central bank is called the Federal Reserve and it is about as “federal” as Federal Express is. The truth is that it is a privately-owned financial institution that is designed to ensnare the U.S. government in an endlessly expanding spiral of debt from which there is no escape. The Federal Reserve caused the Great Depression and the Federal Reserve is at the core of our current economic crisis. None of these things is taught to students in America’s schools today.
In 2010, young Americans are taught a sanitized version of American history that doesn’t even make any sense. As with so many things, if you want to know what really happened just follow the money.
The following are facts about the history of central banks in the United States that every American should know….
As a result of the Seven Years War with France, King George III of England was deeply in debt to the central bankers of England. In an attempt to raise revenue, King George tried to heavily tax the colonies in America.
In 1763, Benjamin Franklin was asked by the Bank of England why the colonies were so prosperous, and this was his response…. “That is simple. In the colonies we issue our own money. It is called Colonial Script. 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 Currency Act of 1764 ordered the American Colonists to stop printing their own money. Colonial script (the money the colonists were using at the time) was to be exchanged at a two-to-one ratio for “notes” from the Bank of England.
In his autobiography, Benjamin Franklin explained the impact that this currency change had on the colonies…. “In one year, the conditions were so reversed that the era of prosperity ended, and a depression set in, to such an extent that the streets of the Colonies were filled with unemployed.” In fact, Benjamin Franklin stated unequivocally in his autobiography that the power to issue currency was the primary reason for the Revolutionary War…. “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 the 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.”
Governor Morris, one of the authors of the U.S. Constitution, solemnly warned us in 1787 that we must not allow the bankers to enslave us…. “The rich will strive to establish their dominion and enslave the rest. They always did. They always will… They will have the same effect here as elsewhere, if we do not, by (the power of) government, keep them in their proper spheres.” Unfortunately, those warning us about the dangers of a central bank did not prevail. After an aborted attempt to establish a central bank in the 1780s, the First Bank of the United States was established in 1791. Alexander Hamilton (who had close ties to the Rothschild banking family) cut a deal under which he would support the move of the nation’s capital to Washington D.C. in exchange for southern support for the establishment of a central bank.
George Washington signed the bill creating the First Bank of the United States on April 25, 1791. It was given a 20 year charter. In the first five years of the First Bank of the United States, the U.S. government borrowed 8.2 million dollars and prices rose by 72 percent. The opponents of central banking were not pleased. In 1798, Thomas Jefferson said the following…. “I wish it were possible to obtain a single amendment to our Constitution – taking from the federal government their power of borrowing.”
In 1811, the charter of the First Bank of the United States was not renewed. One year later, the War of 1812 erupted. The British and the Americans were at war once again.
In 1814, the British captured and burned Washington D.C., but the Americans subsequently experienced key victories at New York and at New Orleans. The Treaty of Ghent, officially ending the war, was ratified by the U.S. Senate on February 16th, 1815 and was ratified by the British on February 18th, 1815.
In 1816, another central bank was created. The Second Bank of the United States was established and was given a 20 year charter. Andrew Jackson, who became president in 1828, was determined to end the power of the central bankers over the United States. In fact, in 1832, Andrew Jackson’s re-election slogan was “JACKSON and NO BANK!” On July 10th, 1832 President Jackson said the following about the danger of a central bank…. “It is not our own citizens only who are to receive the bounty of our government. More than eight millions 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 bind it to our country? … Controlling our currency, 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.”
In 1835, President Jackson completely paid off the U.S. national debt. He is the only U.S. president that has ever been able to accomplish this. President Jackson vetoed the attempt to renew the charter of the Second Bank of the United States in 1836.
Richard Lawrence attempted to shoot Andrew Jackson, but Jackson survived. It is alleged that Lawrence said that “wealthy people in Europe” had put him up to it.
The Civil War was another opportunity for the central bankers of Europe to get their hooks into America. In fact, it is claimed that Abraham Lincoln actually contacted Rothschild banking interests in Europe in an attempt to finance the war effort. Reportedly, the Rothschild’s were demanding very high interest rates and Lincoln balked at paying them. Instead, Lincoln pushed through the Legal Tender Act of 1862. Under that act, the U.S. government issued $449,338,902 of debt-free money. This debt-free money was known as “Greenbacks” because of the green ink that was used. The central bankers of Europe were not pleased. The following quote appeared in the London Times in 1865…. “If this mischievous financial policy, which has its origin in North America, shall become indurate 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.”
Abraham Lincoln was shot dead by John Wilkes Booth on April 14th, 1865. After the Civil War, all money in the United States was created by bankers buying U.S. government bonds in exchange for bank notes.
James A. Garfield became president in 1881, and he was a staunch opponent of the banking powers. In 1881 he said the following…. “Whoever controls the volume of money in our 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.” President Garfield was shot about two weeks later by Charles J. Guiteau on July 2nd, 1881. Garfield died from medical complications on September 19th, 1881.
In 1906, the U.S. stock market was setting all kinds of records. However, in March 1907 the U.S. stock market absolutely crashed. It is alleged that elite New York bankers were responsible. In addition, in 1907 J.P. Morgan circulated rumors that a major New York bank had gone bankrupt. This caused a massive run on the banks. In turn, the banks started recalling all of their loans. The panic of 1907 resulted in a congressional investigation that ended up concluding that a central bank was “necessary” so that these kinds of panics would never happen again. It took a few years, but the international bankers finally got their central bank in 1913.
Congress voted on the Federal Reserve Act on December 22nd, 1913 between the hours of 1:30 AM and 4:30 AM. A significant portion of Congress was either sleeping at the time or was already at home with their families celebrating the holidays. The president that signed the law that created the Federal Reserve, Woodrow Wilson, later sounded like he very much regretted the decision when he wrote the following…. “A great industrial nation is controlled by its system of credit. Our system of credit is privately concentrated. The growth of the nation, therefore, and all our activities are in the hands of a few men … [W]e 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 the duress of small groups of dominant men.”
Between 1921 and 1929 the Federal Reserve increased the U.S. money supply by 62 percent. This was the time known as “The Roaring 20s”. In addition, highly leveraged “margin loans” became very common during this time period. In October 1929, the New York bankers started calling in these margin loans on a massive scale. This created the initial crash that launched the Great Depression. Rather than expand the money supply in response to this crisis, the Federal Reserve really tightened it up. In fact, it was reported the U.S. money supply contracted by eight billion dollars between 1929 and 1933. That was an extraordinary amount of money in those days. Over one-third of all U.S. banks went bankrupt. The New York bankers were able to buy up other banks and all kinds of other assets for pennies on the dollar.
(Published on 11-12-2010 Source: The American Dream)
At one point Congress had the power to control the cash flow in America; unfortunately the current government is a group of fiscal spendthrifts that think money grows on trees. Allowing them this power would be like giving a monkey a loaded machine gun and expecting it not to pull the trigger. The result would be a disaster of biblical proportions. We would need adults in government that understood the process and that we not under the control of special interest groups or lobbyists. They would truly need to have the interests of the country in mind. I’m not holding my breath…
After viewing this historic summary of money and its control in America it’s easy to see that we have lost our control of our destiny and our country. My analogy to a loan-shark I believe to be more than appropriate. For those that are not familiar with this term, here is the definition.
Loan shark – noun Informal. a person who lends money at excessively high rates of interest; usurer.
A loan shark loans money at high interest rates with the intent of keeping the borrower under his control. If you borrow money under these circumstances you will often repay double the amount borrowed, or make payment on this loan that can never be repaid. This brings to mind our current dilemma. Making the regular payments on a credit card usually requires 30 years to repay the principle (the amount that you borrowed) and the interest (the money you are charged for using this service. Our government has no intention of repaying our debt. It is convenient for them to have an almost unlimited bank account to fund their programs with the intent of deferring the debt to future generations.
As of November 7th, 2010 our debt is 95% of our Gross Domestic Product (GDP) or the amount of goods and services produced in a year: that is $13.723 Trillion in debt. Our international debt is 66% of GDP or $9.14 Trillion. It is easy to see that we are no longer in a position of control, and in fact the power has shifted to those that we owe. China is still the Number One with $894.8 billion, followed by Japan with $768.8 billion. These numbers are increasing daily as these two countries continue to purchase US debts. The remaining debt is held by… you guess it, the Federal Reserve.
Why is this important and why does this matter?
The estimated population of the United States is 309,497,647 so each citizen’s share of this debt is $44,578.91. I don’t know about you. But I don’t happen to have that kind of money anywhere. If I did, I would pay off personal debts before tackling our National Debt! The problem this presents is our loss of control of commerce and of the government. If these powerful debtors called in our loan, that is to demand payment, we would be bankrupt. There is not enough cash to pay these debts. This power position allows these countries enormous power over our government. Imagine that China decided to demand payment on this nearly $1 Trillion and we could not pay them. Now imagine that China needed cash and decided to sell our debt to another country, but that country would only agree to pay a discounted amount. The result would be a devalued debt, but also a devalued currency in the US; inflation of our goods and services because our dollar is now worth less in terms of international debt.
Interestingly, the only people that make a profit are the Federal Reserve and the other Central Banks because they broker and fund these international transactions. To fund these transactions the Federal Reserve prints more money, $600 Billion as of yesterday to provide quantitative easing to further reduce interest rates. Putting more into circulation only dilutes the buying power of the existing money. Think of this as adding water to soup. The recipe requires only 4 cups but you add 10 cups to make the soup go further. The resulting soup would be pretty weak and tasteless. The same holds true with our money.
Since the Federal Reserve has this control to print money, they can also at any time reduce the amount of money in circulation (call in the debt) and create another depression. People will lose homes, businesses, banks, and what wealth they have. We will be under the total control of those with the power created by owning debt.
Is there a solution… Yes, but those that propose this solution would be subject to the same fate that befell the leaders of old… Assassination! My personal recommendation is to stop creating additional personal debt, pay off your personal debt as quickly as possible and hope that we have the time to make these small changes to our personal situations. We must also insist that our Government become more fiscally responsible by reducing our dependence on loans and begin reducing the national debt. We can make these changes. We can take control of our destiny as a Nation. We can make this work, but we must all undertake these steps personally then nationally. We can’t continue to write checks on an empty account.
That’s the power of debt… If you try to eliminate the cause of the debt, you lose your life in the process…
~ The Author ~
Charles R. Dickens was born in 1951, is a veteran of the Vietnam, for which he volunteered, and the great-great grandson of the noted author, whose name he shares.
He is a fiercely proud American, who still believes this is the greatest country on the planet, with which we’ve lost control and certainly our direction. He grew up in moderate financial surrounding; were not rich by any stretch, but didn’t go hungry – his incredibly hard working father saw to that. As most from that era, he learned about life from his father, whose story would take too long to tell, other than to say that, he is also a fiercely proud American; a WWII and Korean war, veteran Marine.
Charlie was educated in the parochial system which, demanded that you actually learn something, and have capability to retain it before you advance. He attended several universities in pursuit of a bachelor’s degree, and chased the goose further to a master’s, and has retained some very definite ideas about education in this country.
In addition, Charlie is a professional (struggling) blues guitar and vocalist – a musician. This is his therapy career. Nothing brings him as much joy as playing music, and he wishes that he could make a living at it… maybe some day!
That’s Charlie… a proud, opinionated, and passionate American.
Mr. Dickens can be reached for comment at firstname.lastname@example.org