"Before passage of this Act, the New York bankers
could only dominate the reserves of New York. Now we are able to dominate bank
reserves of the entire country." - Nelson
"The present Federal Reserve System is a flagrant
case of the US government conferring a special privilege upon bankers. The US
government hands to the banks its credit, at virtually no cost to the banks, to
be loaned out by the bankers for their own private profit. Our present money
system is a debt money system. Before a dollar
can circulate, a debt must be created. Such a system assumes that you can
borrow yourself out of debt." - Willis A. Overholser
1911 Corporations are starting to finance their own expansions
out of profits instead of taking out huge loans. In the first ten years of the
century, 70% of corporate funding came from profits.
Samuel Untermeyer delivers the speech
"Is There a Money Trust?".
Charles August Lindbergh asserts that a
banking trust existed within the United States and that it should be
An 'educational' fund of $5,000,000 is set up to finance
academics at top universities to endorse the new central banking
The new central bank would be very similar to the
Bank of North America, in that
it would be given a monopoly over US currency and create that money without
In order to make the public think the new central
banking system was under control of the US government, the plan called for the
central bank to be run by a board of governors appointed by the President and
approved by the Senate.
"When that monetary bill was given to the
country, it was but a few days previous to the meeting of the American Bankers
Association in New Orleans in 1911. There was not one banker in a hundred who
had read that bill. We had twelve addresses in favor of it." - Andrew Frame
During the Pujo Money Trust
investigation Samuel Untermeyer personally cross examines JP Morgan and other
Wall Street investment
The Pujo Money Trust Committee concluded:
Panic of 1907 started with the closing of the
Knickerbocker Trust when its member clearing bank (National Bank of Commerce of
New York) refused to act as its clearing agent anymore.
- that clearing
house associations are discriminating via minimum capital requirements as well
as predatory membership and discriminatory member policies.
listing practices were forcing restrictions on both members and non-members of
the New York Stock Exchange as well as "unwholesome speculation" and price
manipulation by large groups colluding for profit and ultimately running
corporations out of business.
- consolidation of banks and interlocking
directorates (small groups of the same men
serving as directors on several different boards) has led to increased
wealth accumulation of 42.9% of banking resources held by the twenty largest
Investigators found that 180 individuals in 341 directorship
positions in 112 corporations with $22,245,000,000 in aggregate resources of
Pujo Committee Report concluded that a community of
influential financial leaders had gained control of major manufacturing,
transportation, mining, telecommunications and financial markets of the United
At least eighteen different major financial corporations were
under the control of a cartel led by JP Morgan, George F. Baker and
men, through the resources of seven banks and trust companies (Bankers Trust,
Guaranty Trust, Astor Trust,
National Bank of Commerce, Liberty
National Bank, Chase National
Bank, Farmers Loan and Trust) controlled an estimated $2.1 billion.
The report reveals that a handful of men hold manipulative control of
the New York Stock Exchange.
The Pujo Report singled out individual
bankers including Paul
Warburg, Jacob Hirsch
Warburg, Frank Peabody,
Rockefeller and Benjamin Strong.
1912 The Aldrich Bill is presented to Congress
for debate and quickly identified as a bill to benefit private central bankers.
"The Aldrich plan is the Wall
Street plan. It means another panic, if necessary, to intimidate the
people. Aldrich, paid by the government to represent the people, proposes a
plan for the trusts instead." - Charles A. Lindbergh
"Under the Aldrich
Plan the bankers are to have local associations and district associations, and
when you have a local organization, central control is assured. When you have
hooked the banks together, they can have the biggest influence of anything in
this country, with the exception of the
newspapers." - Leslie
Republican leadership never brought the Aldrich Bill to a vote as
the Republican party had developed
During the Democratic presidential campaign,
Woodrow Wilson and the leadership
of the Democratic Party pretended
to oppose the Aldrich Bill.
As Republican representative,
Louis T. McFadden, explained
twenty years later, when he was Chairman of the House Banking and Currency
Committee, "The Aldrich Bill was condemned in the platform when Woodrow
Wilson was nominated. The men who ruled the
Democratic Party promised the
people that if they were returned to power there would be no central bank
established here while they held the reins of government. Thirteen months later
that promise was broken, and the Woodrow Wilson administration, under the
tutelage of those sinister Wall
Street figures who stood behind
Edward Mandell House,
established here in our free country
monarchical institution of the, 'King's Bank,' to control us from the top
downward, and to shackle us from the cradle to the grave."
object to the Aldrich Bill on the following points:
Its entire lack of
adequate government or public control of the banking mechanism it sets up.
Its tendency to throw voting control into the hands of the large banks
of the system.
The extreme danger of
inflation of currency inherent in the system.
The insincerity of
the bond funding plan provided for by the
measure, there being a barefaced pretense that this system was to cost the
dangerous monopolistic aspects of the bill."
- Carter Glass
Wilson is selected.
John Pierpont Morgan,
Baruch, Edward Mandell
House advanced a new plan Paul Warburg calls the
Federal Reserve system.
The leadership of the
Democratic Party hail this new
bill, the "Glass-Owen" bill, as totally different to the Aldrich Bill, when in
fact it was virtually identical.
"Paul Warburg is the man who
got the Federal Reserve Act together after the
Aldrich Plan aroused such nationwide resentment and opposition. The mastermind
of both plans was Baron Alfred de
Rothschild of London." - Col. Garrison, an agent of
Brown Brothers, later
Brown Brothers Harriman
Paul Warburg there
would have been no Federal Reserve Act. The
banking house of Warburg and
Warburg in Hamburg has always been strictly a family business. None but a
Warburg has been eligible for it, but all have been born into it. In 1895
Paul Warburg married the daughter of
the late Solomon Loeb of Kuhn, Loeb &
Warburg became a member of Kuhn, Loeb
& Company in 1902." - Harold Kelloch
"Brushing aside the
external differences affecting the, 'shells,' we find the, 'kernals,' of the
two systems very closely resembling and related to one another." -
Nelson Wilmarth Aldrich, and
Frank Vanderlip of
National City Bank, publicly
state their opposition to the bill in order to make people believe that the
bill proposed is radically different from the Aldrich Bill.
Vanderlip stated years later in the Saturday Evening Post, "Although the
Aldrich Federal Reserve Plan was defeated when it bore
the name Aldrich, nevertheless its
essential points were all contained in the plan that finally was
"Congress should go slow on currency legislation. The recent
artificial panic was to scare the country into forcing Congress to act quickly
and blindly. They are unwilling to have the peoples government have any say."-
Alfred Owen Crozier
With Congress near a vote on the
Glass-Owen Alfred Crozier testified:
"The bill should prohibit the
granting or calling in of loans for the purpose of influencing quotation prices
of securities and the contracting of loans or increasing interest rates in
concert by the banks to influence public opinion or the action of any
legislative body. The so-called administration currency bill grants just what
Wall Street and the big banks for
twenty-five years have been striving for, that is, PRIVATE INSTEAD OF
PUBLIC CONTROL OF CURRENCY. It does
this as completely as the Aldrich Bill. Both measures rob the government and
the people of all effective control over the public's money, and vest in the
banks exclusively the dangerous power to make money among the people scarce or
plenty. The Aldrich Bill puts this power in one central bank. The
Administration Bill puts it in twelve regional central bank, all owned
exclusively by the identical private interests that would have owned and
operated the Aldrich Bank.
President Garfield shortly
before his assassination declared that whoever
controls the supply of currency would control the business and activities of
the people." - Alfred Crozier 1913
"Centralization of credit in the banks of the
state, by means of a national bank with state capital and an exclusive
monopoly." - Point 5 Communist Manifesto,
Karl Heinrich MarxOctober
Congress passes a bill, authored by Nelson
Wilmarth Aldrich, legalizing a
direct income tax of the people - the
income tax law is fundamental to the
Federal Reserve as the Federal Reserve system would run up an
unlimited US bond debt which
needed a source of income to retire.
The only way to guarantee the
payment of interest on this debt was to directly
tax the people, like
the Bank of England.
Federal Reserve had to rely on contributions from the States (like the UN),
they would be dealing with bigger entities, who could revolt and refuse to pay
the interest on their own money (like the US), or at least bring political
pressure to bear in order to keep the debt small.
16th amendment was
never legally ratified according
to evidence presented by Bill Benson.
19 Senate passed a version by a vote of 54-34. Over forty important
differences in the House and Senate versions remain to be settled.
bill as it stands seems to me to open the way to
a vast inflation of currency. I do not
like to think that any law can be passed which will make it possible to
submerge the gold standard in a flood of
irredeemable paper currency." - Henry Cabot Lodge Sr.
the bill in both houses of Congress were led to believe that many weeks would
elapse before the the Federal Reserve Act
conference bill would be ready for consideration and left town for
December 22 Federal Reserve Act is passed by the House 282-60 and
the Senate 43-23.
Woodrow Wilson signs the
Federal Reserve Act.
print of the Federal Reserve
Act of 1913 as passed by the House of Representatives and amended by the
Senate shows the following change:
The Senate struck out, "To suspend
the officials of Federal Reserve banks for cause, stated in writing with
opportunity of hearing, require the removal of said official for incompetency,
dereliction of duty, fraud or deceit, such removal to be subject to approval by
the President of the United States."
Changed by the Senate to read "To
suspend or remove any officer or director of any
Federal Reserve bank, the
cause of such removal to be forthwith communicated in writing by the
Federal Reserve Board to the
removed officer or director and to said bank."
"In practice, the
Federal Reserve Bank of New
York became the fountainhead of the system of twelve regional banks, for
New York was the money market of the nation. The other eleven banks were so
many expensive mausoleums erected to salve the local pride and quell the
Jacksonian fears of the hinterland. Benjamin Strong, president of the Bankers
Trust was selected as the first Governor of the
Federal Reserve Bank of New York.
Adept in high finance, Benjamin Strong for many years manipulated the country's
monetary system at the discretion of directors
representing the leading New York banks. Under Benjamin Strong, the Reserve
System was brought into interlocking relations with the
Bank of England and
the Bank of France. Benjamin Strong held
his position as Governor of the
Federal Reserve Bank of New
York until his sudden death during a Congressional investigation of the
secret meetings in 1928 between Reserve Governors and heads of European central
banks which brought on the Great Depression of 1929-31." - Ferdinand
The signing of
the Federal Reserve Act by Woodrow Wilson represents the culmination of
years of collusion with his intimate friends,
Edward Mandell House,
Baruch, Paul Warburg,
"This Act establishes the most gigantic trust on earth. When the
President signs this bill, the
invisible government of the monetary power will be legalized. The people
may not know it immediately, but the day of reckoning is only a few years
removed." - Charles A Lindbergh Sr.
Federal Reserve Act was
passed almost 100 years ago, powerful private interests have slowly consumed
our Federal Government. Their monopoly power over our monetary system has
allowed them to seize all the other powers of government which they used to
impose their will onto every area of our lives, from education, to industry, to
healthcare . . . all of it."- Bruce McDonald
"The establishment of the
Federal Reserve ensured that the US would become indebted to and owned by
international banking interests, and
thus, act in their interest. The Fed financed the US role in
World War I, provided the
credit for speculation, which led to the Great Depression, and massive
consolidation for the interests that own the
Federal Reserve System.
It then financed US entry into
World War II." - Andrew
Jacob Hirsch Schiff to
"My dear Colonel House. I want to say a word to you for the
silent, but no doubt effective work you have done in the interest of currency
legislation and to congratulate you that the
measure has finally
been enacted into law. I am with good wishes, faithfully yours,
Federal Reserve banks are
The Federal Open Market Committee creates money
out of nothing!
"Bankers are in the debt
business, and if governments are allowed to create enough money to keep
themselves and their constituents out of debt, lenders will be out of business.
The central banks charged with maintaining the banking business therefore
insist on a stable currency at all costs, even if it means slashing services,
laying off workers, and soaring debt and interest burdens. For the financial
business to continue to boom, governments
must not be allowed to create money themselves, either
by printing it outright or
by borrowing it into existence from their own
government-owned banks." - Ellen Brown Most
"currency" is now in the form of electronic records, rather than paper records
such as banknotes.
Open market operations are conducted
simply by electronically increasing or decreasing ('crediting' or 'debiting')
the amount of currency that a bank has in its reserve account at the central
bank in exchange for a fungible
instrument, an entry in an electronic spreadsheet.
created when the balance in a reserve account is increased.
created currency is then used by the central bank to buy in the open market
other fungible instruments which may or may not be backed with tangible
financial assets, such as US bonds, foreign currency, or gold.
When the central bank sells these fungible
instruments in the open market, the amount of currency
that the purchasing bank holds decreases, effectively destroying
The US Treasury sells marketable securities - T-Bills,
Promissary Notes, Bonds, and Treasury Inflation-Protected Securities (TIPS) to
the public through regular public auctions to raise the cash needed to operate
the US government and to refund maturing securities.
Marketable securities can be
bought, sold or transferred after they are originally
issued.Marketable securities are simply
Marketable securities are
purchased in order to get a secure rate of interest.
At the end of the
term of the marketable
security, the US Treasury repays the principle, plus interest and the
marketable security is
destroyed - ie. the fungible instrument is deleted from the electronic
For example the Federal Reserve system exchanges a fungible
instrument for $1,000,000 of marketable securities with the US
When the fractional reserve is 10% - $10,000,000 can then be
loaned on a $1,000,000 purchase of marketable securities.
The Federal Reserve, in effect, has created 10% of this totally new
$10,000,000 by 'purchasing' government IOU's with fungible instruments.
The Federal Reserve then issues loans to member banks to create the
To reduce the amount of money in circulation this process is
The Federal Reserve sells
marketable securities to the
public and the money flows
out of the local bank.
When the fractional reserve is 10% - loans must
be then reduced by ten times the amount of the sale.
Federal Reserve $1,000,000 in marketable securities results in a $10,000,000
reduction of currency in the local economy when fractional reserve rules are
Reserve controls the amount of currency in circulation in two ways.
first way the Federal Reserve controls the amount of currency in circulation is
through the purchase and sale of marketable securities.
second way the Federal Reserve controls the amount of currency in circulation
is through the interest rate it charges its member banks to borrow.
Federal Reserve also controls the interest rate on the
marketable securities through
the purchase and sale of marketable securities.
the US Treasury offers more marketable securities than the
rate of demand of those marketable
securities then the Federal
Reserve can step in and purchase the excess capacity to keep interest rates
low or the Federal Reserve can refuse to purchase those
marketable securities and the
interest rate on those marketable
securities will increase to draw in needed capital.
When interest rates go up less currency is
loaned out and less currency in the system creates contraction - recession
"The financial system has been turned over to the
Federal Reserve Board. That board
administers the finance system by authority of a
group." - Charles A Lindbergh Sr.
"Half a dozen men at the top of
the Big Five Banks could upset the whole fabric of government finance by
refraining from renewing Treasury Bills." - London Financial Times
Reserve has authority over the currency in circulation.
policy, set by the privately owned and operated Federal Reserve, is highly
independent of effective political control.
Federal Reserve is
subservient only to the Bank of International
"The first task of the
Federal Reserve system would be to finance the
The European nations were already
bankrupt, because they had maintained large standing armies for almost fifty
years, a situation created by their own central banks, and therefore they
could not finance a war. A central bank always imposes a tremendous burden on
the nation for "rearmament" and "defense", in order to create inextinguishable
debt, simultaneously creating a military dictatorship and enslaving the people
to pay the "interest" on the debt which the
bankers have artificially created." - Eustice Mullins
1914 At the start of
World War I the German
Rothschilds loaned money to
the Germans, the British Rothschilds loaned money to the British, and the
French Rothschilds loaned money to the French while the Federal Reserve
provided liquidity with cash
"To cause high prices, all the
Federal Reserve Board will do
will be to lower the rediscount rate, producing an expansion of credit and a
rising stock market, then when business men are adjusted to these conditions,
it can check prosperity
in mid-career by arbitrarily raising the
rate of interest. It can cause the pendulum of a rising and falling market to
swing gently back and forth by slight changes in the discount rate, or cause
violent fluctuations by a greater rate variation, and in either case it will
possess inside information as to financial conditions and advance knowledge of
the coming change, either up or down. This is the strongest, most dangerous
advantage ever placed in the hands of a special privilege class by any
government that ever existed. The system is private, conducted for the sole
purpose of obtaining the greatest possible profits from the use of other
people's money. They know in advance when to create panics to their advantage.
They also know when to stop panic. Inflation and
equally well for them when they control finance." - Charles A Lindbergh Sr.
Federal Reserve banks began operations on November 16 with total assets
listed at $143,000,000 garnered from the sale of shares in the
Federal Reserve banks to
stockholders of the
national banks which subscribe. It
seems most likely that from the very outset, the Federal Reserve operations
were "paper issued against paper", that fungible bookkeeping entries in a
datatbase comprised the only values which actually "changed hands."
stock in the original twelve regional
Federal Reserve banks was
purchased by national banks in twelve regions. The Federal Reserve Bank of New
York set the interest rates and directed open
market operations, thus
controlling the daily supply and value of money throughout America.
Each member bank of the Federal Reserve system owns nonnegotiable
shares of stock in its regional Federal Reserve Bank. A 6 percent dividend is
paid on the stock to member banks which are all privately owned and operated
through joint stock
Reserve Board of Governors must approve Federal Regional Bank
At one point the Board of Governors
* Ben Salom Bernanke,
* Donald Kohn, Vice-Chairman
* Frederic Mishkin
Warsh (married to Jane Lauder*)
affiliated with American Enterprise
"The Federal Reserve was created to
promote price stability, prevent financial panics and smooth out the amplitude
of the business cycle. Ironically, and unbeknownst to most Americans,
Federal Reserve policy is
enormously responsible for the boom-and-bust economic metric. Interest rate
reductions, money supply manipulation, currency intervention, and interference
in the private sector are not the marks of a free-market economy." - Drew Klein
John Pierpont Morgan becomes
the sales agent for the, War Materials Board, to both the British and the
French engaged in World War I.
Woodrow Wilson appointed
Baruch to head the War
According to historian, James Perloff,
Bernard Mannes Baruch profited by
approximately 200 million dollars during
World War I.
1916 "We have come to be one of the worst ruled, one of the
most completely controlled governments in the civilized world - no longer a
government of free opinion, no longer a government by a vote of the
majority, but a government by the
opinion and duress of a small group of
dominant men. Some of the biggest men in the US, in the field of commerce
and manufacture, are afraid of something. They know there is a power somewhere
so organized, so
subtle, so watchful, so interlocked, so complete, so pervasive, that they
had better not speak above their breath when they speak in
condemnation of it."- Woodrow
Woodrow Wilson calls for war on
With the entry of the US into the
World War I, Julius H.
Barnes, a grain salesman, and Prentiss Gray, a lumber shipping clerk, were
given important posts in the newly created US Food Administration under Herbert
Julius H. Barnes became President of the Grain
Corporation of the US Food Administration and Prentiss Gray was chief of Marine
Transportation. G. A. Zabriskie, was named head of the US Sugar Equalization
All three - Julius H. Barnes, G. A. Zabriskie, Prentiss Gray -
were agents for J.
Henry Schroder Banking Corporation in New York
After the World War
I, the partners of J. Henry Schroder
owned most of Cuba's sugar industry.
M.E. Rionda was president of
Cuba Cane , director of
Manati Sugar and American British and Continental Corporation, and other firms.
Baron Bruno von Schroder, senior partner of the firm, was a director of
North British and Mercantile Insurance Company. His father, Baron Rudolph von
Schroder of Hamburg, was a director of Sao Paulo Coffee Ltd., one of the
largest Brazilian coffee companies, with F.C. Tiarks, also of the Schroder
The Czars of Russia
continually opposed a central bank in
Russia and supported
Abraham Lincoln during the
Jacob Hirsch Schiff finances the Bolshevik
Revolution through Kuhn & Loeb.
is commonly believed that communism is the opposite of capitalism, so why would
these capitalists support it?
"If one understands that
socialism is not a
program, but it is in reality a method to consolidate and control the
wealth, then the seeming paradox of
super-rich men promoting socialism becomes no
paradox at all. Instead it becomes
logical, even the perfect tool of
meglomaniacs. Communism, or more accurately
socialism, is not a movement
of the downtrodden masses, but of the economic elite." - Gary
1919 Paris Peace Conference takes
place following the end of World War
1921 Warren G. Harding is elected
President of the United States, and succeeds Woodrow Wilson. This will be the
start of a period which became known as the, "roaring twenties." Despite the
fact that World War I had saddled America with a debt that was ten times larger than its Civil War
debt, the US economy grew in abundance. Also,
gold had poured into America during the war and continued during the
Warren G. Harding reduced taxes domestically, and increased
tariffs on imports to record levels.
"If our nation can issue a dollar
bond, it can issue a dollar bill. The element that makes the bond good, makes
the bill good, also...It is absurd to say that our country can issue 30 million
dollars in bonds and not 30 million dollars in currency. Both are promises to
pay, but one promise fattens the usurers and the other helps the people." -
Thomas Edison, December 6,
1921 New York Times
"The warning of
Theodore Roosevelt has much
timeliness today, for the real menace
of our republic is this
invisible government which
like a giant octopus sprawls its slimy length over city, state, and nation.
It seizes in its long and powerful tentacles our executive officers, our
legislative bodies, our schools, our courts, our
newspapers, and every
agency created for the public protection... To depart from mere
generalizations, let me say that at the head of this octopus are the
Oil interest and a small group of powerful
banking houses generally referred to as international bankers. This little
coterie of powerful international bankers virtually run the US Government for
their own selfish
purposes. They practically control both parties, write political platforms,
make catspaws of party leaders, use the leading men of private organizations,
and resort to every device to place in nomination for high public office only
such candidates as will be amenable to the dictates of corrupt big business
these international bankers and
Oil interests control the majority of
magazines in this country." -
John Hylan, Mayor of New York, March 26, 1922 New
"The Jews are
responsible for Bolshevism in Russia, and Germany too. I was far too indulgent
with them during my reign, and I bitterly regret the favors I showed the
prominent Jewish bankers."- German Kaiser Wilhelm II Chicago Tribune
July 2, 1922
1923 Warren G. Harding dies on a
train under mysterious circumstances. The cause was given as either food
poisoning or a stroke although no autopsy was performed. Warren G. Harding is
succeeded by his Vice-President Calvin Coolidge.
Calvin Coolidge continued Warren
G. Harding's tax cutting and tariff raising policies. This policy was so
successful that the economy still continued to grow, and the huge Federal
debt built up during World War I, under Warren
G. Harding Calvin Coolidge
reduced by 38% down to 16 billion dollars. Federal Reserve start flooding the
country with money, increasing the money supply by 62%.
made the following statement in relation to his support for the Federal
Reserve, "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 privately 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 the duress of small groups of
Bank of England Governor Montagu
Norman, Benjamin Strong of the Federal Reserve Bank of New York, and
Hjalmar Schacht of the
Reichsbank, meet in conference.
Federal Reserve bails out the
Bank of England by increasing the
money supply through cheap loans, cheap loans used to purchase stock on margin,
which allowed the gold to flow back into the coffers of the
Bank of England by reducing the
value of the American dollar in relation to the British pound(£).
Louis T. McFadden,
Chairman of the House Banking & Currency Committee would comment on this
Bank of England plan in the midst
of the Great Depression in February 1931 when he stated, "I think it can hardly
be disputed that the statesmen and financiers of Europe are ready to take
almost any means to reacquire rapidly the gold stock which Europe lost to
America as a result of World
"In the 1920s, the US experienced a stock market boom,
which was a result of the commercial banks providing funds for the purchase of
stock and took the latter as collateral, creating a massive wave of
underwriting and purchasing of securities. The stock market speculation that
followed was the result of the banks borrowing substantially from the Federal
Reserve. The Federal Reserve System financed the great stock market boom." -
Andrew Gavin Marshall
1929 Paul Warburg sends
out a warning that a collapse and nationwide depression have been planned for
later that year.
In August the Federal Reserve begins to tighten the
On 24th October the big New York bankers call in their 24
hour broker call loans.
"When everything was ready, the New York
financiers started calling 24 hour broker call loans. This meant that the
stockbrokers and the customers had to dump their stock on the market in order
to pay the loans. This naturally collapsed the stock market and brought a
banking collapse all over the country because the banks not owned by the
oligarchy were heavily involved in broker call claims at this time, and bank
runs soon exhausted their coin and currency and they had to close. The
Federal Reserve system
would not come to their aid, although they were instructed under the law to
maintain an elastic currency." - William Jennings Bryan
"Let me end my
talk by abusing slightly my status as an official representative of the Federal
Reserve. I would like to say to Milton and Anna: Regarding the Great
Depression. You're right, we did it." - Ben
Shalom Bernanke, 2002 birthday tribute to
"At the height
of the selling frenzy
Baruch brought Winston Churchill into
the visitors gallery of the New York Stock Exchange to witness the panic and
impress him with his power over the wild events on the floor." -
John Kenneth Galbraith, The Great Crash
"It was not accidental. It was a carefully contrived
occurrence. The international bankers sought to bring about a condition of
despair here so that they might emerge as rulers of us all." -
Curtis B. Dall, the son-in-law of
Franklin Delano Roosevelt, who
was working for Lehman Brothers as a
broker, on the floor of the New York Stock Exchange, on the day of the
crash, stated in his 1967 book, F. D. R. My Exploited Father-In-Law,
"Actually, it was the calculated 'shearing' of the public by the
World-Money powers triggered by the
planned sudden shortage of call money in the New York Money Market."
Brown Brothers merged with two other
business entities, Harriman Brothers and W. A. Harriman.
1929 to 1933 Despite claims of the
Federal Reserve protecting the country against depressions and inflation, the
money supply is reduced by an additional 33%.
"The Federal Reserve
definitely caused the Great Depression by contracting the amount of currency in
circulation by one-third from 1929 to 1933." -
Milton Friedman, radio
interview January 1996
In only a few weeks from the day of the crash, 3
billion dollars of wealth vanished. Within a year, 40 billion dollars of wealth
vanished. It did not simply disappear, it just ended up consolidated in fewer
and fewer hands, as was planned.
Joseph P. Kennedy, John F.
Kennedy's father, was worth 4 million dollars, by 1935 that had increased to
over 100 million dollars.
P. Kennedy smuggled scotch whiskey during prohibition.
Andrew William Mellon,
Herbert Hoover's Secretary of the Treasury, spent much of the time overseas
between 1929-31 purportedly negotiating for repayment of European war debts
from World War I. Andrew William
Mellon served as a director of the Pittsburgh National Bank of Commerce.
Andrew William Mellon
advised Herbert Hoover to
"liquidate labor, liquidate stocks, liquidate farmers, liquidate real estate,
it will purge the rottenness out of the system. High costs of living and high
living will come down. People will work harder, live a more moral life. Values
will be adjusted, and enterprising people will pick up from less competent
William Mellon was thought to be the third wealthiest man in America after
John D. Rockefeller and
This is how depressions
"After World War I, Germany fell
into the hands of the German International Bankers. Those bankers bought her
and now they own her, lock, stock, and barrel. They have purchased her
industries, they have mortgages on her soil, they control her production, they
control all her public utilities. The international German bankers have
subsidized the present government of Germany and they have also supplied every
dollar of the money
Adolf Hitler has used in his lavish
campaign to build up a threat to the government of Bruening. The
Federal Reserve Board has pumped
so many billions of dollars into Germany that they dare not name the total." -
Louis T. McFadden, Chairman
of the House Banking & Currency Committee
"Those who controlled
private capital largely walked away from the US economy for the entire 1930s,
refusing to pump in enough new investment even to replace the machinery and
goods-in-process that were consumed during the decade." -
Robert P. Murphy
DuPont - controlled by
the international bankers
John Pierpont Morgan,
Chase, and Warburg - were intimately
related to the growth of
the Nazi war armaments
The money pumped into Germany to build her up in
preparation for World War II, was
pumped into German banks affiliated with
the Harriman interest in New
That money was supplied by the the
John Pierpont Morgan,
Chase, and Warburg.
the money printed through loans by the Federal Reserve went to rebuild Germany
and the Nazi war
1989 Representative Henry Gonzalez, of Texas, introduces House
Resolution 1469, calling for the abolition of the Open Market Committee of the
Federal Reserve system. He also introduced House Resolution 1470, calling for
the repeal of the Federal Reserve Act of 1913. During the same session,
Representative Phil Crane of Illinois, introduced H.R. 70, calling for an
annual audit of the Federal Reserve. These efforts fail.
told to believe that the deaths of
Senator John Heinz
(outspoken Vietnam War critic),
Senator John Tower (investigated
the Reagan/Bush era Iran/Contra
scandal), and Senator Paul
Wellstone (against repeal of Glass-Steagall) in separate airplane crashes
were "pure" coincidence.
1991 "Senator John
Tower had been an outspoken critic of the Eastern Establishment. John Tower had a
very strong sense of right and wrong, particularly on matters concerning
national security. He was well
known for "bucking" the tide. This backfired on him with deadly results when
certain members of Congress, loyal to the
Reagan and Bush faction of the
Intelligence Community, banded together against him in a smear campaign which
resulted in the denial of Tower's confirmation as US Secretary of Defense.
Outraged over the undocumented allegation made to slander his name, Tower began
the book writing process so feared in Washington circles. His controversial
book heavily criticizes his old crony pals in Congress. His death in a plane
crash on April 5, 1991 came very shortly after the book was released. One day
earlier on April 4, 1991, Senator John Heinz died in a
blazing plane crash near Philadelphia. The official reports state that the
plane's landing gear had suddenly malfunctioned. A helicopter was sent up to
check out the gear, only to end up (allegedly) crashing into the plane itself."
- Alexander James
"Scores of banks failed in the Great Depression as a
result of unsound banking practices, and their failure only deepened the
crisis. Glass-Steagall was intended to protect our financial system by
insulating commercial banking from other forms of risk. It was one of several
stabilizers designed to keep a similar tragedy from recurring. Now Congress is
about to repeal that economic stabilizer without putting any comparable
safeguard in its place." -
2002 "Since the beginning of the
last decade, required reserve balances have fallen dramatically. The decline
stems in part from regulatory action: the Federal
Reserve eliminated reserve requirements on large time deposits in 1990 and
lowered the requirements on transaction accounts in 1992. But a far more
important source of the decline in required reserves has been the growth of
sweep accounts. In the most common form of sweeping, funds in bank customers'
retail checking accounts are shifted overnight into savings accounts exempt
from reserve requirements and then returned to customers' checking accounts the
next business day. Largely as a result of this practice, today only 30 percent
of banks are bound by a reserve balance requirement." - Federal Reserve Bank of
New York, 2002
Wellstone dies a plane crash on 25 October 2002, 11 days before he was to
stand in the midterm US senate election.
Wellstone's upset victory in
1990 and subsequent re-election in 1996 was credited to a massive grassroots
campaign, which inspired
college students, poor people and minorities to get involved in politics for
the very first time.
Wellstone was accussed of being
apostate for marrying a Gentile and not raising his children in the Jewish
His death came just 11 days before his potential re-election
in a crucial race to maintain Democratic control of the Senate.
John Heinz and Senator John Tower had both been members of the
Foreign Relations and realized its manipulation in
plans for world
tyranny. Both had served on powerful Senate banking and finance committees.
Both were very astute when it came to matters of monetary policy and the
implementation of foreign
2005 Treasury Department figures
show that from 1776 - 2000, all the previous American Presidents borrowed a
total of $1.01 trillion dollars.
Between 2001 and 2005 the Bush
administration borrowed $1.05 trillion.
Chairman of the Federal Reserve Board, Ben
Salom Bernanke, testified: "A recession is probably not on the horizon, but
quick passage of an economic-stimulus package plus aggressive action by the
Federal Reserve are the appropriate prescription for the ailing
By March 2008, all of the major US investment banks had either
merged with commercial banks, failed, or voluntarily placed themselves under
Federal Reserve control.
"It could be argued that the Fed appears to
be rescuing those who caused the problem at the expense of others who had
nothing to do with it. Opposition to forms and degrees of regulation that would
have seemed excessive before the crisis may be muted because the government has
already established a major ownership position in the financial services
industry." - Mark Jickling, November 24, 2008
"Even though the Federal
Reserve is now the biggest single participant in the financial system, the myth
of a "free market" still
lingers on. It's mind boggling. The Fed has expanded its balance sheet by $2
trillion, guaranteed $8.3 trillion of dodgy mortgage backed paper, provided a
backstop for bank deposits, money
markets, commercial paper, and created 8 separate lending facilities to ensure
that underwater financial institutions can still appear to be solvent. The
whole system is a state subsidized operation buoyed on a taxpayer-provided
flotation device which bears no resemblance to
an invisible hand. It's flagrant
blackmail and everyone knows it.
This is why Bernanke has launched his
radical intervention, buying bonds, stocks and anything else that will keep
asset-prices from crashing. It's an attempt to reignite spending by goosing the
market. When businesses and consumers can't sustain demand, the government has
to step in and take their place. The real worry is that Bernanke's pet theory
is merely an academic pipe-dream which is doing more harm than good. After all,
his strategy is based on a controversial reading of history that is only
accepted by disciples of Milton Friedman."
- Mike Whitney December 9, 2008
2009 Bank of England
gives itself 75 billion pounds, with a fungible entry and a click of the mouse,
to purchase its own outstanding bonds.
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