The Federal Reserve System

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The Federal Reserve System

Apparently there were constant battles for control of the republic between the international bankers and presidents. Controlling the central bank of a country seems to be a crucial part of installing a dictatorship. Allen wrote, "From the earliest days, the Founding Fathers had been conscious of attempts to control America through money manipulation, and they carried on a running battle with the international bankers."

"Essential to controlling a government is the establishment of a central bank with a monopoly on the country's supply of money and credit," wrote Perloff. Meyer Rothschild is said to have remarked, "Let me issue and control a nation's money, and I care not who writes its laws." Allen concurred, "All those who have sought dictatorial control over modern nations have understood the necessity of a central bank. When the League of Just Men hired a hack revolutionary named Karl Marx to write a blueprint for conquest called The Communist Manifesto, the fifth plank read: "Centralization of credit in the hands of the state... Lenin later said that the establishment of a central bank was ninety percent of communizing a country."

Senator Barry Goldwater described an international banker as one who makes money by extending credit to governments. This is more beneficial to the banker than loaning to an individual because governments borrow much more, and they can guarantee repayment by burdening the people with taxes. Also, instead of debt payment, a banker may receive political influence. Perloff wrote, "No turn of events is more lucrative for an international banker than war--because nothing generates more government borrowing faster."

"Whoever controls the volume of money in our country is absolute master of all industry, and commerce ... and when you realize that the 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 James Garfield July 2, 1881

One attempt to gain control of the country by way of a central bank was with the Bank of the United States (1816-36), which was abolished by President Andrew Jackson. Jackson warned, "The bold effort the present [Bank of the United States] had made to control the government, the distress it had wantonly produced ... 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." Note the semantic deception used with the naming of the bank, "Bank of the United States," as if to imply that it was part of the government. This was not the last time this tactic was used.(*)

Senator Goldwater wrote, "In the early years of the Republic ... Jefferson opposed Alexander Hamilton's scheme for the First Bank of the United States, and Andrew Jackson abolished Nicholas Biddle's Second Bank of the United States." "America heeded Jackson's warning for the remainder of the century," wrote Perloff. But the "tide began to turn ... with the linking of European and U.S. banking interest, and the growing in power of America's money barons, such as J.P. Morgan, John D. Rockefeller, and Bernard Baruch."
A German banker named Paul Warburg migrated to the U.S. in 1902. He was an associate of the Rothschilds and became a partner in Kuhn, Loeb, and Company, which was headed by Jacob Schiff. The Schiffs also had ties to the Rothschilds, which went back about a century. Warburg began to lecture widely on the need for a central banking system.

Apparently the international bankers became impatient over the unwillingness of congress to accept a central bank. So using the Problem-Reaction-Solution formula, Wall Street deliberately created a panic to force congress to create a central banking system controlled by private interests. This was done to eliminate competition and to seize control of the country by way of the Federal Reserve System.

Perloff wrote, "The Panic of 1907 was artificially triggered to elicit public acceptance of this idea. Snowballing bank runs began after J.P. Morgan spread a rumor about the insolvency of the Trust Company of America." He added, "Tragedy is the mother of new directions. The Panic of 1907 spawned the Federal Reserve."

Allen described J. P. Morgan as "an old hand at creating artificial panics." He stated, "Such affairs were well co-coordinated. Senator Robert Owen, a co-author of the Federal Reserve Act, (who later deeply regretted his role), testified before a Congressional Committee that the bank he owned received from the National Bankers' Association what came to be know as the Panic Circular of 1893. It established: 'You will at once retire one-third of your circulation and call in one-half of your loans.'"

On April 25, 1949, Life Magazine ran an article entitled, Morgan The Great, where historian Frederick Lewis Allen reported that "certain chroniclers have arrived at the ingenious conclusion that the Morgan interests took advantage of the unsettled conditions during the autumn of 1907 to precipitate the panic, guiding it shrewdly as it progressed so that it would kill off rival banks and consolidate the preeminence of the banks within the Morgan orbit."

This deliberately created (problem) caused a predictable panic (reaction), which forced congress to create a commission to investigate other banking options, which resulted in the Federal Reserve (solution). In a Congressional Record dated, December 22, 1913, vol. 51, Congressman Charles Lindberg declared, "The Money Trust ... caused the 1907 panic, and thereby forced Congress to create a National Monetary Commission."

Perloff describes the Money Trust as, Wall Street monopolists such as Rockefeller, Morgan, Warburg, and Schiff. Heading the National Monetary Commission was Senator Nelson Aldrich, who was under the control of the international bankers. "Aldrich was known as the international bankers' mouthpiece on Capitol Hill," wrote Perloff. There was apparently some bribery that took place too. Top left is Paul Warburg. Bottom right is Frederic Delano. (**)

The commission spent about two years studying central banks in Europe, and finally the "Federal Reserve became law in December 1913," declared Perloff. The solution was drafted at Morgan's hunting club on Jekyl (sic) Island off the coast of Georgia. "The Fed," stated Allen, "was drafted on Jekyl Island in Georgia by Senator Nelson Aldrich; Henry P. Davison of J. P. Morgan and Company; Frank A. Vanderlip, President of the Rockefeller-owned National City Bank; A. Piatt Andrew, Assistant Secretary of the Treasury; Benjamin Strong of Morgan's Bankers Trust Company; and [Rothschild representative] Paul Warburg." Tucker added "The 'Fed,' ... is allied with the Bilderberg group, which is composed of the world's biggest moneychangers--led by the Rockefellers and Rothschilds."

The naming of this bank was another tactic of semantic deception; there is no reserve, and it's not federal. The Federal Reserve is privately owned, it makes its own polices and is not subject to the president or congress. Many of its members are from the CFR. "Probably 90% of the US citizens think that the Federal Reserve System is one of the branches of the federal government," Ross said, and added, "most think that it is part of the Treasury Department ... because of the term 'Federal' in its name." "This is no accident," he proclaims, but a "psychological ploy to con the Americans into accepting their deception. It is not 'Federal' and there is no 'Reserve.'"

Perloff added, "Indeed, the Fed is authorized to create money-and thus inflate--at will. According to the constitution, only Congress may issue money or regulate its value. The Federal Reserve Act, however, placed these functions in the hands of private bankers--to their perpetual profit." Senator Goldwater wrote, "The accounts of the Federal Reserve System have never been audited. It operates outside of the control of Congress and through its Board of Governors manipulates the credit of the United States."

Federal Reserve board members serve 14-year terms and are appointed by the president. "Since these positions control the entire economy of the country they are far more important than cabinet positions," said Allen. He continued, "These appointments which should be extensively debated by the Senate are routinely approved." The results he says are "ever-increasing debt requiring ever-increasing interest payments, inflation and periodic scientifically created depressions and recessions."

Also in 1913, the 16th amendment was passed which subjected citizens to a federal tax. "Because income tax has been declared unconstitutional by the Supreme Court in 1895, it had to be instituted by constitutional amendment," wrote Perloff. Again, Senator Nelson Aldrich who was handled by the international bankers proposed the amendment. "The man who brought forward the amendment in Congress was the same senator who proposed the plan for the Federal Reserve--Nelson Aldrich," observed Perloff.

Apparently the American people agreed to this new tax because they believed it would have a minimal impact on the middle class and would impede the rich. "Initially, it was nominal," Perloff described, "a mere one percent of income under $20,000--a figure few made in those days." According to Perloff the American people were assured it would never increase.

Another reason is that the public was deceived by clever propaganda that the Federal Reserve would stabilize the economy and prevent future panics. "It did nothing of the kind," declared Perloff. "Not only has our nation suffered through the Great Depression and numerous recessions, but inflation and federal debt-negligible problems before the Fed came into existence--have plagued America ever since."

On June 10, 1932 Congressman Louis McFadden, a former chairman of the House Committee on Banking and Currency warned, "When the Federal Reserve Act was passed, the people of these United States did not perceive that a world banking system was being set up here. A super-state controlled by international bankers and international industrialists acting together to enslave the world for their own pleasure. Every effort has been made by the Fed to conceal its powers but the truth is--the Fed has usurped the government."

Usurp
"1 to seize and hold (as office, place, or powers) in possession by force or without right."
-Merriam-Webster's Dictionary

Congressman Lindberg informed the public in a Congressional Record dated December 22, 1913, vol. 51, that "This [Federal Reserve] act establishes the most gigantic trust on earth... When the President signs this act the invisible government by the money power, proven to exist by the Money Trust investigation, will be legalized..." He warned, "I have seen these forces exerted during the different stages of this bill" and "The money power overawes the legislative and executive forces of the Nation and of the States."

"If the key to controlling a nation is to run its central bank," asked Perloff, "one can imagine the potential of a global central bank, able to dictate the world's credit and money supply. The roots for such a system were planted when the International Monetary Fund (IMF) and World Bank were formed at the Bretton Woods Conference of 1944. These UN agencies were both CFR creations," he added.

Dr. Johannes Witteveen, former head of the IMF, said in 1975 that the agency should become "the exclusive issuer of official international reserve assets." In the fall 1984 issue of a CFR newsletter called, Foreign Affairs, Richard N. Cooper laid out a modern plan for international currency. He wrote, "I suggest a radical alterative scheme for the next century: the creation of a common currency for all the industrial democracies, with a common monetary policy and a joint bank of Issue to determine that monetary policy."

In 1987 Senator Jesse Helms, stated "it is no secret that the international bankers profiteer form sovereign state debt. The New York banks have found important profit centers in lending to countries plunged into debt by Socialist regimes. Under Socialist regimes, countries go deeper and deeper into debt because Socialism as an economic system does not work. International bankers are sophisticated enough to understand this phenomenon and they are sophisticated enough to profit from it."

"Many historians would have us believe that this trio of events--the income tax, the Federal Reserve, and the War--was a coincidence," wrote Perloff. "But too often history has been written by authors financed by foundations, in books manufactured by Establishment publishing houses." He observed, "Many more 'coincidences' were yet to trouble the American people in this century."

Summary

Congressmen McFadden and Lindberg, both clearly state that the "legislative and executive forces" had been "usurped" (taken over) by an "invisible government" consisting of international "bankers" and "industrialists" acting together to "enslave the world for their own pleasure." What these researchers and statesmen are saying is that the Federal Reserve is a privately owned corporation, which was created using lies and deceit. It exists to control the nation, and to eliminate competition using taxation, in order to prevent the middle class from rising to affluence.

[Footnotes]
* A term commonly used by Charlotte Iserbyt in her book, The Deliberate Dumbing-Down of America.
** Photo taken from the Shadows of Power, by James Perloff.