This is some great information on the Federal Reserve taken from the website Abolish The Federal Reserve.
|We are in the midst of a total economic meltdown:
The purpose of this website is 2 fold:
- to expose the truth about the unconstitutional fraud perpetrated upon the American public by the Federal Reserve System . . .
- a scam which swindles wealth away from the U.S. public and lines the pockets of greedy international bankers
- to educate the public as to how we can abolish the Federal Reserve and get our economy back on track . . .
- prospering in a tax free society, with all our liberties and rights in tact, as our founding fathers intended.
It is not surprising that most people are unaware of the Fed’s outragous, fraudulent scam because the media does not report on it . . .
Why ? Because the media is controlled by them. An essential step in all cons is to hide the deception from the mark. In this case the Fed is the con-artist . . . while the unsuspecting U.S. public is the mark. The Fed uses its powerful influence to control the media and keep us in the dark.
However, you do not have to look any further than their name to see their blatant deception . . .
The Federal Reserve System –
is NOT Federal . . . has NO reserves . . . is NOT a system
Their deceptive name tries to hide the fact that they are actually a Privately Owned, Central Bank, with no reserves. They “create” money and then loan it to our government (actually exchange it for U.S. bonds) thus creating an endless cycle of national debt. This is referred to as “monetizing the debt,” which erodes the standard of living for all Americans.
It is important to understand that the FED does not actually print money, All U.S. currency is in fact printed by the Bureau of Engraving and Printing (BEP). The Fed, rather is the master distributor of the money, which they “create” this way by executing a simple computer entry in their accounting system.
What is The Federal Reserve ? and What do they do ?
Despite what many people think . . . the Federal reserve is NOT . . . an agency of the United States government.
They are no more a part of the Federal government than is Federal Express. The Federal Reserve is actually a privately owned corporation, owned by a secret group of international bankers. In essence, they are a private banking cartel who have a total monopoly on “creating” money for the U.S. government. The Fed’s only real agenda is to turn a profit . . . and they do so . . . at the expense of every single man, woman and child living in the U.S.A..
If you ask the average person you meet on the street . . . What is the Fed ? and What do they do ? . . . most (if they have any idea at all) will say they think the Fed is an agency of the U.S. government . . . and that they serve to help stabilize our economy by controlling interest rates and providing liquidity when needed.
Nothing could be further from the truth . . . they really have 1 agenda and 1 agenda only . . . that is to turn a profit.
They do this in 2 different ways:
- They manipulate interest rates to create “boom-bust” cycles which always work out to the advantage of the hidden elite “insiders”. . .
as they know exactly when our economy will boom . . . and when it will bust.
- They increase the money supply by “creating” money through the incredibly lucrative “sweet heart” deal
they’ve had with the U.S. government, ever since the Federal Reserve Act of 1913 was signed into law.
Accordingly, when the U.S. Government needs money, they go to the Fed to borrow the money. The Fed calls the Treasury and asks them to print x amount of Federal Reserve Notes (FRN) in units of one hundred dollars. The Treasury charges the Fed 2.3 cents for each note. The Fed then lends that money to the government at face value plus interest. The government has to create a bond for the loan amount as security for the loan.
Now the government owes the private ownership of the Fed the face value of the bonds plus interest. In other words, the Fed earns interest by “loaning” that money to the U.S. government. Imagine that . . . they earn interest by loaning money which is not even theirs to loan . . .
which they just created out of thin air . . .
So essentially every bill they “create” has a debt associated to it . . . and if the debt is not paid . . . what do you think they do ?
That’s right . . . They create more Federal Reserve Notes so they can loan more to the government (actually exchange for U.S. bonds)
in order to pay off the debt, thereby growing the national debt even more.
This is what we refer to as a debt monetary system . . . in other words . . . our currency has a debt attached to it before we ever spend any of it. We can never get out of debt because it is a self propagating, vicious cycle, that will ultimately end with the complete destruction of our currency and bankruptcy of our nation.
The Federal Reserve is a fraudulent, unconstitutional scam
- a scam which swindles wealth away from the U.S. public and lines the pockets of greedy international bankers
- a scam which is at the root of every financial crisis and war we have had since the Fed’s existence
- a scam which is based on a debt monetary system and fractional reserve banking
- a scam which coincided with unconstitutional enactment of Federal income tax
The Fed is not our friend . . . They are our enemy . . . our worst oppressors, exploiting us every chance they can. The Fed will never use any of their power to fix any of our economic problems, because there is a great conflict of interest. They will always use their power to manipulate the economy to their advantage. Their huge profits come at the expense of every single man women and child living here in the USA . . .
They have single handedly been responsible for every inflationary period, every economic recession and every depression that has occurred during their entire unconstitutional existence.
As they pull the strings on their deliberate boom-bust cycles, the hidden elite “insiders” profit enormously while each of us sees our currency become more and more worthless each and every day . . . In fact, the dollar today is worth only four cents compared to the dollar in 1913, when the Federal Reserve started.
The Fed will profit even more with each financial bailout our government tries. All of these bailouts will ultimately fail and only hurt our economy more . . . because the more money the Fed creates . . . the more our national debt grows AND at the same time . . . the more our inflation grows. Either one of these conditions is very bad for any economy . . . both happening at the same time is a recipe for disaster to our already struggling economy.
The Fed of course is very much in favor of these bailouts . . . because they are in the business of creating money . . . the bailout calls for spending hundreds of billions of dollars that our government does not have . . . the Fed will earn billions in interest by creating all of this money.
And If that was not bad enough, the Fed is also exempt from payng any income tax on the huge profits they make from this scam . . .
They can NOT be audited and do NOT answer to the President or anyone for that matter. The president appoints the Board of Governors but has no control over their secret activities. Congress knows nothing of the conversations, plans, and actions taken in concert with other central banks. We get less and less information regarding the money supply each year, especially now that M3 is no longer reported.
Not only is the Fed exempt from tax . . . but 100% of the income tax that Americans pay . . . goes right to the Fed to pay off this debt, which they perpetually create. It is no coincidence that the Federal Income tax law was enacted in the same year as the Federal Reserve Act. It was needed to finance this scam. Prior to this, the U.S prospered and the government paid it’s bills with out needing revenue from income tax . . . but that all ended with the enactment of the Federal Reserve Act of 1913 . . . From that point forward . . . income tax was required to pay for the debt owed to the Fed for interest on the money they create and loan out to the U.S. government. This is just beyond insanity.
History of Central Banks in the U.S.
The majority of our founding fathers were viamently opposed to the notion of a central bank . . . a few, such as Alexander Hamilton and other “federalists” were in favor of one.
Thomas Jefferson very famously said “I believe that banking institutions are more dangerous to our liberties that standing armies”
“The central bank is an institution of the most deadly hostility existing against the principles and form of our constitution. I am an enemy to all banks, discounting bills or notes for anything but coin. If the American people allow private banks to control the issuance of their currency, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the people of all their property until their children will wake up homeless on the continent their fathers conquered.”
James Madison said “History records that the money changers have used every form of abuse, intrigue, deceit, and violent means possible to maintain their control over governments by controlling the money and its issuance.”
Andrew Jackson said “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.”
Abraham Lincoln said “The government should create, issue and circulate all the currency and credit needed to satisfy the spending power of the government and the buying power of consumers … The privilege of creating and issuing money is not only the supreme prerogative of Government, but it is the Government’s greatest creative opportunity. By the adoption of these principles, the long-felt want for a uniform medium will be satisfied. The taxpayers will be saved immense sums of interest…”
In accordance with Thomas Jefferson’s views, Article 1, Section 8 of the US Constitution specifically says that Congress is the only body that can “coin money and regulate the value thereof.” The US Constitution has never been amended to allow anyone other than Congress to coin and regulate currency.
Still, through out our history, several central banking systems have been implemented.
- First Bank of the United States– In 1791, Alexander Hamilton, the Secretary of the Treasury, made a deal to support the transfer of the capital from Philadelphia to the banks of the Potomac in exchange for southern support for his Bank project. As a result, the First Bank of the United States (1791-1811) was chartered by Congress in that same year. The First Bank of the United States was modeled after the Bank of England and differed in many ways from today’s central banks. For example, it was partly owned by foreigners, who would share from its profits. It was also not solely responsible for the country’s money supply; its share was only 20%, while private banks accounted for the rest. The Bank was bitterly opposed by several founding fathers, including Thomas Jefferson and James Madison, who saw it as an engine for speculation, financial manipulation, and corruption.
- Second Bank of the United States-After a five-year interval, the Federal government chartered its successor, the Second Bank of the United States (1816-1836). It was basically a copy of the First Bank, with branches over the country. Andrew Jackson, who became president in 1828, denounced it as an engine of corruption that benefited his enemies. His destruction of the bank was a major political issue in the 1830s and shaped the Second Party System, as Democrats in the states opposed banks and Whigs supported them.
- “Free” Banks: 1837-1863 While there had always been state-chartered banks in the United States, with loss of the Second Bank’s charter, there was a need for more banking. Consequently, during the period from 1837 to the Civil War, commonly known as the free banking era, states passed “free bank laws,” which allowed banks to operate under a much less onerous charter. While banks were regulated, they were relatively free to enter the business by simply depositing government bonds with state auditors.These bonds were the collateral backing the notes free banks issued. In addition, free banks were required to redeem their notes on demand in specie. As a result of the free banking laws, hundreds of new banks opened their doors, and free bank notes circulated around the country, often at a discount: The discount on a given bank note varied in part with the distance from the issuing bank and in part with the perceived soundness of the bank.Over this period a private institution, known as the Suffolk Bank in New England, took on some of the roles typical of a central bank, such as clearing payments, exchanging notes and disciplining banks that were over-issuing their notes. Also, in response to a rising volume of note and check transactions beginning in the late-1840s, the New York Clearinghouse Association was established in 1853 to provide a way for the city’s banks to exchange notes and checks and settle accounts.
- National Banks: 1863-1913 The outbreak of the Civil War and the need to finance it led again to a renewed interest in a national bank. But this time, with the lessons of the Second Bank, the designers took a different approach, modeled on the free banking system. In 1863, they established what is now known as the “national banking system.” The new system allowed banks to choose between a national charter and a state charter. With a national charter, banks had to issue government-printed bills for their own notes, and the notes had to be backed by Federal bonds, which helped fund the war effort. In 1865, state bank notes were taxed out of existence. Thus, in spite of all previous attempts, this was the first time a uniform national currency was established in the United States.
Birth of the Fed
By the early 20th century the U.S. had already implemented and removed a few central banking systems which were swindled into place by ruthless banking interests. At this time, the dominant families in the banking and business world were the Rockefellers, the Morgans, the Warburgs and the Rothchilds and in the early 1900’s they sought to push once again legislation to create another central bank . . . however they knew the government and public were very weary of such an institution . . . so they needed to create an incident to affect public opinion. And for this reason was hatched the idea to deliberately orchestrate what history refers to as “the panic of 1907”. This was accomplished by JP Morgan exploiting his mass influence and publishing rumors that a prominent bank in NY was insolvent or bankrupt. Morgan knew this would cause mass hysteria which would affect other banks as well. And it did . . . the public in fear of losing their deposits immediately began mass withdraws. Consequently, the banks were forced to call in their loans, causing recipients to sell their properties and thus a spiral of bankruptcy, repossessions and turmoil emerged.
Unaware of the fraud, the panic of 1907 lead to a congressional investigation headed by senator Nelson Aldrich, who had intimate ties to the banking cartels and later became part off the Rockefeller family through marriage. The commission lead by Aldrich recommended that a central bank should be implemented so that a panic like 1907 could never happen again. This was the spark the international bankers needed to initiate their plan.
In 1910, a secret meeting was held at a J.P. Morgan estate on Jekyll Island off the cost of Georgia. Aldrich met with representatives of prominent banking firms. Such men included Henry Davison (senior partner of J.P. Morgan Company), Frank Vandelip (President of the National Bank of New York associated with the Rockefellers), Charles D. Norton (president of the Morgan-dominated of First National Bank of New York), Benjamin Strong (representing J.P. Morgan), and the primary architect of the Act, Paul Warburg (representing Kuhn, Loeb & Co.) This meeting was so secretive, so concealed from government and public knowledge that the those who attended were told that they could only use their first names to address each other.
Over a period of ten days these bankers drafted the Federal Reserve Act. After which, it was handed over to their political front man Senator Nelson Aldrich to push through congress. And so, two days before Christmas, between the hours of 1:30 A.M. and 4:30 A.M., when much of Congress was either sleeping or at home with their families for the Christmas holidays,The Federal Reserve Act of 1913 was voted on and passed through the Senate.
Woodrow Wilson, who with heavy political sponsorship by the bankers, was elected president in 1912, and had already agreed to sign the Federal Reserve Act in exchange for campaign support. And so, on December 23, 1913, Presdient Wilson signed the bill into law. This Act transferred control of the money supply of the United States from Congress as defined in the U.S. Constitution to the private banking elite.
Years later, Woodrow Wilson wrote in regret “I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation is now controlled by its system of credit. We are 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”
Can there be a more stinging condemnation . . . than by the man who . . . convinced it was for the good . . . championed it in the first place ?
Congress man Lous Mcfadden also expressed the truth after the passage of the bill “A world banking system was being set up here . . . a superstate controlled by international bankers . . . acting together to enslave the world for their own pleasure. The Fed has usurped the government.”
The Federal Reserve act of 1913 was an easy sell to the big US banks. By fixing prices, they would be able to sell all the loans they wanted. They knew in advance when interest rates would be lowered or raised, enabling them to profit from the boom/bust cycles. The small banks, on the other hand, didn’t have inside information and many of them were wiped out.
The public was told that the Federal reserve was an economic stabilizer and that inflation and economic crisis were a thing of the past . . .
but as history has shown . . . nothing was further from the truth. The fact is that international bankers now had a streamlined machine to expand their personal ambitions. For example from 1914-1919 the fed increased the money supply by nearly 100%, resulting in extensive loans from small banks to the public. Then in 1920, the Fed called in mass percentages of the outstanding money supply, thus resulting in supporting banks having to call in huge numbers of loans and just like in 1907 . . . bank runs, bankruptcy and collapse occurred. Over 5400 competitive banks outside of the Federal reserve system collapsed further consolidating their monopoly.
Privy to this crime congressman Charles Lindbergh stepped up and said in 1921 “Under the Federal reserve act, panics are scientifically created. The present panic is the first scientifically created on, worked out as we figure a mathamatical equation.”
How the Fed caused the Great Depression
There is a huge amount of disinformation spread on the subject of what caused the great depression . . . so lets set the record straight.
History has shown that the panic of 1920 was just a warm up for the Fed. From 1921 through 1929 the Fed again increased the money supply, this time by 62%, resulting once again in extensive loans to the public and banks. This caused inflation and an economic boom. Politically-connected insiders knew that an economic boom was being created. So at the start of the boom, they loaded up on debt and bought assets before inflation set in.
There was also a fairly new type of loan called the margin loan in the stock market. Very simply, the margin loan allowed the investor to put down only 10% of the stocks price with the other 90% being loaned through the broker. In other words a person could own $1000 worth of stock with only $100 down. This method was very popular in the roaring 1920’s as everyone seemed to be making money in the market, however there was a catch to this loan. it could be called in at anytime and had to be paid within 24 hours. This is termed a margin call and the typical result of a margin call is the selling of the stock purchased with the loan.
In 1929, the Federal Reserve insiders decided to jack up interest rates worldwide in order to cause the “bust” part of the planned boom-bust cycle. At that time, the Federal Reserve did not publish its interest rate target to the general public. The Federal Reserve did not publicly state in advance whether it was planning to raise or lower interest rates. Even in the present, someone who knew in advance about a Federal Reserve move could profit immensely.
The insiders knew what was coming. So a few months before October of 1929, JD Rockefeller, Bernard Barach and other insiders quietly exited the market. They stopped issuing loans and converted all their holdings to cash. And on October 24, 1929, the New York financiers who furnished the margin loans started calling them in in mass. This sparked an instantaneous massive sell off in the market as everyone had to cover the margin loans. It then triggered mass bank runs for the same reason, in turn collapsing over 16000 banks.
Since the insiders had converted their holdings to cash before the crash, after the crash, they were able to buy assets at a huge discount. Since they were unleveraged, they were able to borrow and buy up even more assets at the bottom of the Great Depression. The conspiring international bankers not only bought up rival banks at deep discounts but they were also able to buy up whole corporations for pennies on the dollar. It was the greatest robbery in American history.
But the Fed did not stop there. Rather than expending the money supply to recover from this economic collapse, the Fed actually contracted the money supply . . . fuelling one of the largest economic depressions in history.
The Great Depression is often blamed on “greedy speculators”. But that is just propoganda spread by the Fed. The truth is that with artificially low interest rates, it made sense to borrow and buy assets. If interest rates are 2% and inflation is 10%, then borrowing to invest is sensible. Many farmers and small business owners were forced to borrow to expand, to keep up with their competition. The “greedy speculators” were acting independently in the “free market”. The Federal Reserve and negative interest rates were the real culprit. The speculators were following the false signal the Federal Reserve was sending via artificially cheap interest rates.
Now having brought society down to it’s knees, the Fed decided that the gold standard should be removed which would allow them to proft more by creating more money. In order to do this they needed to acquire the remaining gold in the system . . . so under the pretence of helping to end the depression, came a 1933 gold seizure. On April 5, 1933, Roosevelt signed Executive Order 6102, declaring that under the threat of imprisonment for 10 years, a $10,000 fine or both, everyone in America was required to turn in all gold bullion to the U.S. Treasury at payment of $20.67 per ounce. . . essentially robbing the public of what little wealth they had left.
While U.S. citizens could be ordered not to hoard gold, Roosevelt knew he could not impose such a law on sovereign nations. Foreigners could still exchange there U.S. dollars for gold, So at the end of 1933, after confiscating everyone’s gold, President Roosevelt defaulted on the dollar, and declared the USA bankrupt. The gold standard was abolished and the dollar was devalued relative to gold, from $20/oz to $35/oz. thereby decreasing the value of the dollar overnight by 40.94%.
If you look at a dollar bill from before 1933 it says it is redeemable in gold. If you look at a dollar bill today, it says it is legal tender . . . which means it is backed by absolutely nothing. it is worthless paper. The only thing that gives our money value is how much of it is in circulation. Since the dollar was no longer redeemable in gold, this allowed a further increase in the money supply, which meant more profit for the fed and an even more devalued dollar.
The insiders who borrowed to buy assets at the bottom of the Great Depression were allowed to default on their loans, repaying their debts with devalued dollars. Many loan contracts contained “gold clauses” requiring payment to be increased if the dollar were devalued relative to gold. Congress declared these “gold clauses” invalid, ripping off creditors and providing a massive subsidy to debtors.
In this way, politically connected insiders profited from all three legs of the Great Depression. They profited by borrowing and buying assets at the start of the boom. They were first in line to buy assets with the newly created money, so they were the primary beneficiaries of inflation. Due to their political connections, they were able to foresee the crash coming. They converted their holdings to cash before the crash. At the bottom of the Depression, they were able to borrow and buy assets at a discount. Later, they were able to default on these loans via inflation; inflation meant these loans could be repaid with devalued dollars.
Insiders profit in this manner EVERY TIME there is a boom/bust cycle. The Compound Interest Paradox means that boom/bust cycles are an inevitable consequence of debt-based money. No matter what the Federal Reserve does, there will be boom/bust cycles. Insiders who know what the Federal Reserve is going to do have the opportunity to profit immensely.
The Great Depression accomplished several goals. It forced small farmers off their land when they were unable to repay their mortgages. It forced many small businesses to close. It caused the cartelization of many industries. Conditions of great poverty enabled the welfare state apparatus to be put into place. The Great Depression converted the USA from a nation of farmers and small business owners into a nation of wage slaves.
Louis McFadden and the Fed
On June 10, 1932, Congressman Louis McFadden, a long-time adversary to the Federal Reserve, made a 25-minute speech before the House of Representatives, in which he accused the Federal Reserve of deliberately causing the Great Depression.
In 1933, McFadden introduced House Resolution No. 158, Articles of Impeachment for the Secretary of the Treasury, the Comptroller of the Currency, and the Board of Governors of the Federal Reserve, for numerous criminal acts, including but not limited to, conspiracy, fraud, unlawful conversion, and treason.
The following are some quotes from McFadden’s speech and resolution:
Mcfadden said of the crash and depression: “it was a carefully contrived occurrence. International bankers sought to bring about a condition of despair, so that they might emerge the rulers of us all”
“Roosevelt did what the International Bankers ordered him to do!
“Do not deceive yourself, Mr. Chairman, or permit yourself to be deceived by others into the belief that Roosevelt’s dictatorship is in any way intended to benefit the people of the United States: he is preparing to sign on the dotted line! “He is preparing to cancel the war debts by fraud!”
“He is preparing to internationalize this Country and to destroy our Constitution itself in order to keep the Fed intact as a money institution for foreigners.”
“Mr. Chairman, I see no reason why citizens of the United States should be terrorized into surrendering their property to the International Bankers who own and control the Fed. The statement that gold would be taken from its lawful owners if they did not voluntarily surrender it, to private interests, show that there is an anarchist in our Government.”
“The statement that it is necessary for the people to give their gold- the only real money- to the banks in order to protect the currency, is a statement of calculated dishonesty!”
“By his unlawful usurpation of power on the night of March 5, 1933, and by his proclamation, which in my opinion was in violation of the Constitution of the United States, Roosevelt divorced the currency of the United States from gold, and the United States currency is no longer protected by gold. It is therefore sheer dishonesty to say that the people’s gold is needed to protect the currency.”
“Roosevelt ordered the people to give their gold to private interests- that is, to banks, and he took control of the banks so that all the gold and gold values in them, or given into them, might be handed over to the predatory International Bankers who own and control the Fed.”
“Roosevelt cast his lot with the usurers. “He agreed to save the corrupt and dishonest at the expense of the people of the United States.”
“He took advantage of the people’s confusion and weariness and spread the dragnet over the United States to capture everything of value that was left in it. He made a great haul for the International Bankers.”
“The Prime Minister of England came here for money! He came here to collect cash!”
“He came here with Fed Currency and other claims against the Fed which England had bought up in all parts of the world. And he has presented them for redemption in gold.”
“Mr. Chairman, I am in favor of compelling the Fed to pay their own debts. I see no reason why the general public should be forced to pay the gambling debts of the International Bankers.”
“By his action in closing the banks of the United States, Roosevelt seized the gold value of forty billions or more of bank deposits in the United States banks. Those deposits were deposits of gold values. By his action he has rendered them payable to the depositors in paper only, if payable at all, and the paper money he proposes to pay out to bank depositors and to the people generally in lieu of their hard earned gold values in itself, and being based on nothing into which the people can convert it the said paper money is of negligible value altogether.”
“It is the money of slaves, not of free men. If the people of the United States permit it to be imposed upon them at the will of their credit masters, the next step in their downward progress will be their acceptance of orders on company stores for what they eat and wear. Their case will be similar to that of starving coal miners. They, too, will be paid with orders on Company stores for food and clothing, both of indifferent quality and be forced to live in Company-owned houses from which they may be evicted at the drop of a hat. More of them will be forced into conscript labor camps under supervision.”
“At noon on the 4th of March, 1933, FDR with his hand on the Bible, took an oath to preserve, protect and defend the Constitution of the U.S. At midnight on the 5th of March, 1933, he confiscated the property of American citizens. He took the currency of the United States standard of value. He repudiated the internal debt of the Government to its own citizens. He destroyed the value of the American dollar. He released, or endeavored to release, the Fed from their contractual liability to redeem Fed currency in gold or lawful money on a parity with gold. He depreciated the value of the national currency.”
“The people of the U.S. are now using unredeemable paper slips for money. The Treasury cannot redeem that paper in gold or silver. The gold and silver of the Treasury has unlawfully been given to the corrupt and dishonest Fed. And the Administration has since had the effrontery to raid the country for more gold for the private interests by telling our patriotic citizens that their gold is needed to protect the currency.”
“It is not being used to protect the currency! It is being used to protect the corrupt and dishonest Fed. “The directors of these institutions have committed criminal offense against the United States Government, including the offense of making false entries on their books, and the still more serious offense of unlawfully abstracting funds from the United States Treasury! “Roosevelt’s gold raid is intended to help them out of the pit they dug for themselves when they gambled away the wealth and savings of the American people.”
Louis McFadden died in Oct 3, 1936 during a visit to New York City. The official reason of death was “heart-failure sudden-death”, but many suspect he was poisoned . . . his death came before he could push for the impeachment. There were previously two alleged attacks on McFadden’s life. The first came in the form of two revolver shots when he was in a cab outside one of the Capitol hotels. Both shots missed their intended target. The second was when he became violently ill after a political banquet at Washington. He was saved by a physician friend who procured a stomach pump and gave McFadden emergency treatment.
The Federal Reserve Act and Federal Income Tax
The Federal Reserve act was not the only unconstitutional bill pushed through congress in 1913. Also pushed through the same year was the Sixteenth Amendment, which gives Congress the power to collect tax based on income, without regard to the States or the Census.
The Federal Reserve system wherein every dollar created is an instrument of debt requires the collection of large sums of money from the people to pay off the interest. This new income tax scam was created by Morgan and his crew In order to obtain repayments on the Federal Reserve debt. However it is completely unconstitutional, as it is a direct unapportioned tax. In order to to be constitutionally legal, all direct taxes have to be apportioned (equal for every person). Furthermore, Federal Income Tax was fraudulently passed in Congress, as the required number of states to ratify the amendment was never met.
The Federal Reserve Act and the 16th amendment are the functional equivalent of a surrender treaty. The Federal Reserve Act surrendered control of the monetary system to the international banking cartel and guaranteed the eventual abandonment of the gold standard. The Federal Reserve’s debt-based money guaranteed the enslavement of every American under a crushing debt burden. The Federal Reserve guaranteed the ability of the international banking cartel to confiscate wealth through artificially created boom/bust cycles.
The income tax was an easy sell to politicians. It would enable them to greatly increase the size of the government and their own power. The welfare system was created to compensate for the damage caused by the Federal Reserve and the income tax.
At the present day roughly 35% of the average worker’s income is taken from them via this tax . . . that means you work 4 months out of the year to fulfill this tax obligation. And guess where that money goes . . . it goes to pay the interest on the currency being produced by the fraudulent Fedral Reserve Bank . . . a system that does not have to exist at all. Not one cent of this tax goes to any governmental program what so ever. NOT ONE CENT. The money you make working 4 months out of the year goes almost literally into the pockets of the international bankers who own the private Federal Reserve Bank.
In fact, in 1985, President Ronald Reagan created the Grace Commission to investigate where Income Tax money was spent by the Government each year. It found that 100% was absorbed by interest on Federal debt.That means that not a single penny collected from Federal Income Tax is spent on services provided by the Government. Such services have always arisen from other direct taxes, such as gasoline tax which pays for new roads.
Even with the faudulent government claim as to the legaity of the income tax. There is literally no statute . . . no law in existance that requires you to pay this tax PERIOD.
The Internal Revenue Service has yet to provide an explanation for the missing law of Federal Income Tax. Some Americans have already stopped paying what appears to be a fraudulent tax â€“ and with rising awareness it is only a matter of time before a formal explanation will be demanded by the people.
The Fed and War
Control of the economy and the eventual robbery of wealth is only 1 side of the rubik’s cube, bankers hold in their hands. The next tool for profit and control is war. Since the inception of the Federal reserve in 1913, a number of large and small wars have commenced . . . the three most pronounced were World War I, World War II and Vietnam.
World War I – In 1914, European wars broke out centered around England and Germany. The American public wanted nothing to do with the war. In turn President Wilson publicly declared neutrality, however under the surface, the U.S. administration was looking for any excuse it could find to enter. Wilson’s top advisor and mentor was Vince Colonel Edward House, a man with intimate connections with international banks who wanted in the war. In a noted observation by secretary of state William Jenning Bryan “the large banking interests were deeply interested in the world war because of the wide opportunities for large profits” It’s important to understand that the most lucrative thing that can happen for the international bankers is war . . . for it forces the country to borrow even more money from the Federal reserve bank at interest.
In a documented conversation between Colonel Edward House (Wilson’s advisor) and Sir Edward Gray (foreign secretary of England) regarding how to get America into the war. Gray inquired . . . “What will Americans do if Germans sink an ocean liner with American passengers on board ?” House responded “I believe that a flame of indignation would sweep the United States and that by itself would be sufficient to carry us into war”
So on May 7th, 1915, on essentially the suggestion of Sir Edward Gray, a ship called the Lusitania was deliberately sent into German controlled waters where German military vessels were known to be . . . and as expected the German U-boats torpedoed the ship . . . exploding stored ammunition, sinking it in 18 minutes and killing 1200 people. To further understand the deliberate nature of this set up, the German Embassy actually put a paid advertisement in the New York Times telling people that if they boarded the Lusitania . . . they did so at their own risk. . . as such a ship sailing from England to America through the war zone would be liable for destruction. In turn and as anticipated the sinking of the Lusitania caused a wave of anger among the American population and America entered the war a short time after. The first world war cost 320,000 American deaths. JD rockefeller made 200 million dollars off of it . . . that’s about 1.9 trillion by today’s standard. . . not to mention the war cost about 30 billion dollars for America . . . most of which was borrowed from the Federal reserve furthering the profits of the international bankers.
- World War II– On December 7th, 1941, Japan attacked the American fleet in Pearl Harbor triggering the United States entry into that war. President Franklin D Roosevelt declared the attack was a day that will live in infamy. A day in infamy indeed . . . but not because of the alleged surprise attack on Pearl Harbor, After 60 years of surfacing information, it is clear that not only was the attack on Pearl Harbor known weeks in advance, it was outright wanted and provoked.Roosevelt, who’s family had been New York bankers since the 18th century, and who’s uncle Frederick was on the original Federal Reserve board . . . was very sympathetic to the interest of the international bankers . . . and their interest was to enter the war. . . for as we have seen nothing is more profitable for international bankers than war. In a journal entry by Roosevelt’s secretary of war Henry Stinson dated November 25, 1941, he documented a conversation he had with Roosevelt. “The question was how we should maneuver them into firing the first shot . . . it was desirable to make sure that Japanese be the ones to do this so that there should remain no doubt as to who were the aggressors”In the months leading up to the attack of Pearl Harbor, Roosevelt had done everything in his power to aim at the Japanese showing a posture of aggression. Though claiming neutrality publicly FDR halted all of Japans imports of petroleum, He froze Japanese assets in the U.S.. He made public loans to Nationalist China and supplied military aid to the British (both enemies of Japan in the war) which by the way is completely in violation of international war rules. And on December 4th (3 days before the attack), Australian intelligence told Roosevelt about a Japanese task force moving towards Pearl Harbor. Roosevelt ignored it. So as hoped and allowed on December 7th, 1941, Japan attacked Perl Harbor killing 2400 soldiers. Before Pearl Harbor 83% of the American public wanted nothing to do with the war, after Pearl Harbor, one million men volentered for the war.
It is important to note that Nazi Germany’s war effort was largely supported by 2 organizations, one of which was called I.G. Farben. I.G.Farben produced 84% of Germany’s explosives and even the zyklon b used in the concentration camps to kill millions of Jews. One of the unspoken partners of I.G. Farben was JD Rockefeller’s standard oil company in America. In fact the German air force could not operate with out a special additive patented by Rockefellers Standard Oil. The drastic bombing of London by Nazi Germany, for example, was made possible by a 20 million dollar sale of fuel to I.G.Farben by the Rockefeller Standard Oil Company. This is just one small point on the topic of how American businesses funded both sides of World War II. One other treasonous organization worth mentioning is the Union Banking corporation of New York City. Not only did it finance numerous aspects of Hitler’s rise to power along with actual material during the war, but it was also a Nazi money laundering bank, which was eventually exposed for having millions of dollars of Nazi money in its vaults. The Union Banking corporation of New York City was eventually seized for a trading with the enemy act . . . guess who the director and vice president of the union bank was . . . Prescott Bush. Grandfather of president George W bush and father of president George H Bush.
- Vietnam War– The United States official declaration of war with Vietnam in 1964 came after an alleged incident involving two US destroyers being attacked by the North Vietnamese PT boats in the Gulf of Tonkin. This was known as the Gulf of Tonkin Incident. This single situation was the catalystic pretext for massive troop deployment and full-fleshed warfare. One problem, however. The attack on the US destroyers by Vietnamese PT boats never happened. It was a completely staged event to have an excuse to enter the war. Former Secretary of Defence Robert McNamara stated years later that the Gulf of Tonkin Incident was a mistake, while many other insiders and officers have come forward relaying that it was a contrived farce and complete lie.Once in the war, it was business as usual. In October 1966 President Lyndon Johnson lifted trade restrictions on the Soviet block knowing full well that the Soviets were providing upwards of 80% of North Vietnam war supplies. Consequently, the Rockefeller interests financed factories in Soviet Union which the Soviets used to manufacture military equipment and send it to North Vietnam. However, the funding of both sides in this conflict was only one side of the coin. In 1985 Vietnam’s Rules of Engagement were declassified. This detailed what American troops were and were not allowed to do in the war. It included absurdities like:
- North Vietnamese anti-aircraft missile systems could not be bombed until they were known to be operational
- No enemy could be pursued once they crossed the border of Laos or Cambodia. And most revealing of all..
- The most critical strategic targets were not allowed to be attacked unless initiated via high military officials.
Apart from these imposed ludicrous limitations North Vietnam was informed of these restrictions and therefore could based entire strategies around the limitations of the American forces. This is why the war went on so long. And the bottom line is this: the Vietnam War was never meant to be won. Just sustained. This war for profit resulted in 58.000 American deaths and 3 million dead Vietnamese.
- The War on Terror– September 11th was the jump start for, what is now, accelerating agenda by the ruthless elite. It was a staged war pretext, no different than the sinking of the Lusitania, the provoking of Pearl Harbor and the Gulf of Tonkin lie. In fact, if 9/11 wasn’t a planned war pretext, it would be an exception to the rule. It has been used to launch two unprovoked illegal wars, one against Iraq and one against Afghanistan. However, 9/11 was a pretext for another war as well. The war against you. The Patriot Act, Homeland Security, the Military Tribunals Act and other legislations are all completely and entirely designed to destroy your civil liberties and limit your ability to fight back against what is coming.Currently in the United States, your home can be searched, without a warrant, without you being home. You can in turn be arrested with no charges revealed to you, detained indefinitely with no access to a lawyer and legally tortured, all under the suspicion that you might be a terrorist.If you need a painted picture of what is happening in this country, let’s recognize how history repeats itself. In February 1933, Hitler staged a false flag attack burning down his own German Parliament building, the Reichstag and blamed it on communist terrorists. Within the next few weeks he passed the Enabling Act which completely eradicated the German Constitution, destroying people’s liberties. He then led a series of pre-emptive wars all justified in German people as necessary to maintaining “homeland security”.
Bretton Woods Agreement
The United States had emerged from the Second World War as a dominant world power both militarily and economically. It had grown wealthy selling weapons and lending money to both sides of the war. In 1945, the U.S. produced half the world’s coal, two-thirds of the oil, and more than half of the electricity. The U.S. manufacturing industry was able to produce great quantities of machinery, including ships, airplanes, vehicles, armaments, machine tools, and chemicals. In addition, the U.S. held over 65% of world’s gold reserves and was the sole possessor of the atomic bomb.Delegates from 44 Allied nations gathered at the Mount Washington Hotel in Bretton Woods, New Hampshire for the United Nations Monetary and Financial Conference during the first three weeks of July 1944. The purpose of the conference was to establish the rules for commercial and financial relations amongst the world’s major industrial states. The agreements signed at this conference became known as the Bretton Woods Monetary System.
The Bretton Woods Monetary System was basically a pegged rate currency exchange system with the U.S. dollar functioning as the underlying currency. All countries would peg their currency to the U.S. dollar and would buy and sell U.S. dollars to keep the market exchange rates within a trading band of plus or minus 1% from the original ratio. The U.S. dollar would be convertible into gold at a rate of US$35 per troy ounce. In effect, the U.S. dollar took over the role held by gold under the previous international gold standard financial system.
The U.S. has enjoyed an enormous advantage of such a system because they are the only entity legally capable of creating more of the reserve currency, that being U.S. dollars. Other nations were forced to buy large amounts of U.S. dollar reserves to maintain their currency within the trading band.
JFK and the Fed
On June 4, 1963, John F. Kennedy signed a virtually unknown Presidential decree, Executive Order 11110 , a mere four months before his assassination on November 22, 1963. This decree returned to the U.S. Federal government, the Constitutional right to create and “to issue silver certificates based on any silver bullion, silver, or standard silver dollars in the Treasury.”This meant that based on the amount of silver physically held in the U.S. Treasury’s vault, the government could introduce new money into circulation. As a result, more than $4 billion of new “Kennedy Bills” were created through the U.S. Treasury and were put into circulation in $2 and $5 denominations. $10 and $20 United States Notes (USN) were being printed by the Treasury Department when Kennedy was assassinated, but were never put into circulation. It appears obvious that President Kennedy knew the Federal Reserve Notes (FRN) being used as the purported legal currency were contrary to the Constitution of the United States of America.
Kennedy knew that if the silver-backed USN were widely circulated, they would have eliminated the demand for FRN. This is a very simple matter of economics. The USN was backed by silver and the FRN was not only backed by nothing of intrinsic value, but was also an instrument of debt. Executive Order 11110 should have prevented the national debt from reaching its current level (virtually all of the nearly $9 trillion in federal debt has been created since 1963).
Had LBJ or any subsequent President enforced Kennedy’s Executive Order 11110, It would have almost immediately given the U.S. Government the ability to repay its debt without going to the private Federal Reserve Banks and being charged interest to create new “money”. However, in 1964, Kennedy’s successor, Lyndon B. Johnson “caved in”, stating that, “Silver has become too valuable to be used as money.” And thus the Kennedy bills were removed from circulation.
Nixon Unilaterally Closed the Gold Window
Escalating costs from both the Vietnam War and domestic social programs resulted in ever increasing amounts of U.S. dollars being created. In the early 1970’s, the United States as a whole began running a trade deficit for the first time in the twentieth century. Foreign owners of U.S. dollars began to question the ability of the U.S. government to reduce budget and trade deficits.
Increasingly, foreign nations, in particular the French under Charles de Gaulle, began to send the U.S. dollars earned by exporting to the U.S. back to be redeemed in gold as legally entitled under the Bretton Woods Agreement signed in 1944.
The drain on U.S. gold threatened to completely empty the U.S. Treasury. To prevent this from happening, on August 15, 1971, President Richard Nixon unilaterally closed the gold window. He made the dollar inconvertible to gold directly, except on the open market.
The severing of this last link between gold and paper money meant that all the world’s currencies now “floated” against one another. The result was inevitable with gold soaring from US$35 to US$195 an ounce by the end of 1974.
This was the final step in abandoning the gold standard. All the central banks had to control now was the public’s perception of inflation to allow them to create as much money as desired.
The U.S. was now on a total fiat money system – paper money
Debt Money System and Fractional Reserve Banking
Why can’t politicians control our federal debt ? Because all our money is created out of debt . . . It is a debt money system. Our money is is created initially by the purchase of U.S. bonds. The public buys bonds like savings bonds, the banks buy bonds, foreigners buy bonds and when the Fed wants to create more money in the system it buys bonds . . . but pays for them with a simple bookkeeping entry which it creates out of nothing . . . then this new Fed created money is multiplied by a factor of 10 by the banks . . . banks do the fractional reserve principle.So although the banks don’t create currency, they do create checkbook money or deposits by making new loans. They even invest some of this created money. In fact over 1 trillion dollars of this privately created money has been used to purchace U.S. bonds on the open market, which provides the banks with roughly 50 billion dollars in interest, risk free, each year, free less the interest they pay to depositors. In this way, through fractional reserve lending, banks create over 90% of the money and therefore cause over 90% of our inflation.
How to Abolish The Federal Reserve
What can we do about all this ? Fortunately, there’s a way to fix the problem fairly easily speadily and with out causing any serious financial problems. We can get our country totaly out of debit in 1-2 years by simply paying off these U.S. bonds with debt free U.S. notes . . . just like president Lincoln issued . . . of course that by itself would create tremendous inflation since our currency is presently multiplied by the fractional reserve banking system . . . but here is the ingenious soultion advanced in part by Milton Friedman to keep the money supply stable and avoid inflation and deflation while the debt is retired.As the treasury buys up its bonds on the open market with U.S. notes, the reserve requirements of your hometown local bank will be proportionally raised . . . so that the amount of money in circulation remains constant . . . as those holding bonds are paid off in U.S. notes,
they will deposit this money, thus making available the currency then needed by the banks to increase their reserves. Once all the U.S. bonds are replaced with U.S. notes . . . banks will be at 100% reserve banking instead of the fractional reserve system currently in use.
From this point on the former Fed buildings will only be needed as a central clearing house for checks, and as vaults for U.S. notes . . .
The Federal Reserve Act wil no longer be necessary and could be repealed . . . monetary power could be transfered back to the treasury dept . . . there would no further creation or contraction of money by banks.
By doing it this way, our national debt coud be paid off in a single year or so. The Fed and fractional reserve banking would be abolished,
with out national banakruptcy, financial collapse, inflation or deflation or any significant change in the way the average American goes about his busnises. To the average person . . . the primary difference would be . . . that for the first time since the Federal Reserve Act was passed in 1913 . . . taxes would begin to go down.
Now let’s take a look at these proposals in more detail.
Here are the main provisions of a monetary reform act which needs to be passed by congress:
- Pay off the debt with debt-free U.S. notes.-
As Thomas Edison put it “If the U.S. can issue a dollar bond . . . it can issue a dollar bill . . . they both rest purely on the faith and credit of the U.S. government.” Paying off the debt (U.S. bonds) with U.S. notes, amounts to a simple substitution of one type of government obligation for another . . . U.S. bonds bears interest while U.S. Notes do not. Federal reserve notes could be used for this as well, but could not be printed after the Fed is abolished as we propose, so we suggest using U.S. notes instead.
- Abolish fractional reserve banking. –
As the debt is paid off, the reserve requirements of all banks and financial institutions would be raised proportionally at the same time to abosrb the new U.S. notes, which would be deposited and become the banks increased reserves. Towards the end of the first year of the transition period, the remaining liabilites of financial institutions would be assumed or acquired by the U.S. government in a one time operation. In other words, they too would eventually be paid off in debt free U.S. notes in order to keep the total money supply stable. At the end of the first year or so . . . all of the national debt would be paid and we could start enjoying the beneifts of full reserve banking . . . the Fed would become an obsolete anachronism.
- Repeal the “Federal Reserve Act of 1913” and the “National Banking act of 1864” —
These acts delegate the money power to a private banking monoply. They must be repealed and the money power handed back to the Department of Treasurey, where they were initially under president Abraham Lincoln. No banker or person in any way affiliated with financial institutions should be allowed to regulate banking. After the first 2 reforms, these acts would serve no useful purpose anyway since they relate to a fractional reserve banking system.
- Withdrawl the U.S. from the IMF, the BIS (bank of international settlements) and the World Bank.-
These institituions, like the Federal Reserve, are designed to further centralize the power of the international bankers over the worlds economy. The U.S. must withdrawl from them. Their harmless function, such as currecny exchange can be accomplished either nationally or in new organizations limited to those functions.
Such a monetary reform act would guarantee that the amount of money in circulation would stay very stable . . . causing nether inflation nor deflation. Remember that for last 3 decades the Fed has doubled the American money supply every 10 years. That fact and fractional reserve banking are the real casues of inflation and a reduction in our buying power. . . a hidden tax. These and other taxes are the real reasons both parents now have to work just to get by.
The money supply shoulld increase slowly to keep prices stable . . . roughly in proportion to poulation growth (about 3% per year) not at the whim of a group of bankers meeting in secret. In fact all future decsisons on how much money will be in the American economy must be made based on statistics of population growth and the price level index.
The new monetary regulators and the treasury dept (perhaps called the monetary committee) would have absolutley no discresion in this matater except in time of declared war. This would insure a steady stable money growth abroptly 3% per year resulting in stable prices and no sharp changes in the money supply. To make certain the process is completly open and honest . . . all deliberations would be public . . . not secret as meetings of the Fed board of governerers are today.
How do we know this will work ? Because these steps remove the 2 major causes of economic instability . . . the Fed and fractional reserve banking and the newest one as well the BIS. But most importantly the danger of a sever depresion would be eliminatead.
- Pay off the debt with debt-free U.S. notes.-