Guest Post: The Good, The Bad And The Ugly - Part 3

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Submitted by Jim Quinn of The Burning Platform

The Good, The Bad And The Ugly - Part 3

“You see in this world there’s two kinds of people, my friend. Those with loaded guns, and those who dig. You dig.” -  Blondie – The Good, the Bad and the Ugly

“There are two kinds of people in the world, my friend. Those who
have a rope around their neck and those who have the job of doing the
cutting.” –
Tuco – The Good, the Bad and the Ugly

The economic peril that we find ourselves confronted with, has been
ninety-eight years in the making. The confluence of debt, demographics,
delusion, and denial has left the country at the precipice of
annihilation. There are two kinds of people in the world, those who
control the money and those that are controlled by those who control the
money. The last century has been marked by a methodical looting of the
good (working middle class) by the bad (Federal Reserve & bankers)
and supported by the ugly (Washington D.C. politicians). When historians
pinpoint the year in which the Great American Empire began its downward
spiral they will conclude that year to be 1913. In this dark year for
the Republic, slimy politicians, at the behest of the biggest bankers in
the country, created a private central bank that has since controlled
the currency of the United States. This same Congress staked their claim
as the most damaging group of politicians in US history by passing the
personal income tax in the same year. These two acts unleashed the two
headed monster of inflation and taxation on the American people.

The government began keeping official track of inflation in 1913, the
year the Federal Reserve was created. The CPI on January 1, 1914 was
10.0. The CPI on January 1, 2011 was 220.2. This means that a man’s suit
that cost $10 in 1913 would cost $220 today, a 2,172% increase in
ninety-eight years. This is a 95.6% loss in purchasing power of the
dollar.  The average American does not understand the insidious nature
of central bank created inflation. It makes you think you are wealthier
while you are driven into abject poverty. The Federal Reserve and
politicians have pulled the wool over your eyes. The CPI was 30.9 in
1964. Today, it is 223.5. This means prices have risen 723% since 1964.
The only problem is your wages have not risen at the same rate, even
using the government manipulated CPI. Using a true CPI figure, average
weekly earnings are 64% below what they were in 1964. This explains why a
family of five could live well with one parent working in 1964, but
even with both parents working and accumulating debt in prodigious
amounts, the average family cannot live as well today.


It is not a coincidence that the percentage of the working age
population employed bottomed in 1964 at 59%. The participation rate rose
steadily for the next thirty six years, topping out in 2000 at 67.1%.
The employment to population ratio also bottomed at 55% in 1964. It rose
to 64.4% by 2000. It seems that future historians will mark the year
2000 as the peak of the American Empire. Apologists for the Federal
Reserve and politicians who have steered this country since 1964 would
argue the increase in the percentage of the population working was a
positive development. Nothing could be further from the truth.

The American middle class was forced to send both parents into the
workforce just to keep up with the ever declining real weekly earnings.
The Federal Reserve created inflation has methodically destroyed the
American dream for the middle class. As both parents had to go into the
workforce, American children were left to fend for themselves or be
raised by strangers in daycare centers. The pressure of trying to keep
up with inflation strained families to the breaking point. The number of
divorces per thousand marriages was 10 in the early 1960s. It more than
doubled to 22.6 by 1980 and still resides at 17 today. There are many
factors for the disintegration of the traditional family unit, but the
financial strain on families to maintain a consistent standard of living
due to relentless inflation has been a key factor.


From the founding of our country there had been constant conflict
between corrupt bankers trying to control the currency of the nation to
further their own enrichment at the expense of the people and a few
courageous leaders willing to fight them. The bankers won the century
old battle in 1913. 

Den of Vipers & Thieves

“I too have been a close observer of the doings of the Bank of
the United States. I have had men watching you for a long time, and am
convinced that you have used the funds of the bank to speculate in the
breadstuffs of the country. When you won, you divided the profits
amongst you, and when you lost, you charged it to the Bank…You are a den
of vipers and thieves. I have determined to rout you out and, by the
Eternal, I will rout you out.” -
Andrew Jackson


The First Bank of the United States was created in 1791. Alexander
Hamilton, the 1st Secretary of the Treasury, proposed this bank and
convinced a hesitant President Washington to agree. John Adams and
Thomas Jefferson were against the concept. It favored the moneyed
classes of the North versus the agrarian South. The bank was given a 20
year charter and President James Madison let it expire in 1811. He
understood the true nature of the banking interests:

“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 money and its issuance”.

Madison had to renew the charter in 1816 as the War of 1812 resulted
in large government debts. Politicians always turn to bankers when
funding wars and programs to get them re-elected. As usual, once
unshackled, the bankers immediately caused a boom through their loose
monetary policies. The Bank created a fake boom by 1818 through its
reckless lending, which encouraged speculation in land. This lending
allowed almost anyone to borrow money and speculate in land, sometimes
doubling or even tripling the prices of land (remind you of another time
in recent history?). In the summer of 1818, the national bank managers
realized the bank’s massive over-extension, and instituted a policy of
contraction and the calling in of loans. This recalling of loans
simultaneously curtailed land sales and slowed the U.S. production boom
due to the recovery of Europe. The result was the Panic of 1819. There
was a wave of bankruptcies, bank failures, and bank runs; prices dropped
and wide-scale urban unemployment struck the country. By 1819 many
Americans did not have enough money to pay off their property loans. Do
you see any difference between 1816 – 1819 and 2005 – 2011? Central
banks don’t eliminate financial panics, they cause them. Booms and busts
have always existed. They have become more common and extreme since the
unleashing of greedy corrupt central bankers in the U.S., going back
two centuries.

Andrew “Old Hickory” Jackson became President in 1829 and proceeded
to declare war on the Second National Bank. He was the first and only
President in U.S. history to pay off the National Debt. He worked
tirelessly to rescind the charter of the Second Bank of the United
States. His reasons for abolishing the bank were:

  • It concentrated the nation’s financial strength in a single institution.
  • It exposed the government to control by foreign interests.
  • It served mainly to make the rich richer.
  • It exercised too much control over members of Congress.
  • It favored northeastern states over southern and western states.

President Jackson believed that only Congress should be responsible
for the issuance and control of the currency. Delegating that duty to
powerful New York bankers was distasteful to him:

“If Congress has the right to issue paper money, it was given to
them to be used … and not to be delegated to individuals or

President Jackson vetoed the extension of their bank charter in 1832.
He redirected government tax revenue to other state banks.  The Second
Bank of the United States was left with little money and, in 1836, its
charter expired and it turned into an ordinary bank. Five years later,
the former Second Bank of the United States went bankrupt. Those who
believe that a central bank is essential to economic progress need to
examine the “free banking” period from 1837 to 1861. In the last five
years of the Second Bank’s existence prices rose by 28%. Over the next
25 years, prices in the U.S. fell by 11%. We experienced the dreaded
deflation. Did deflation destroy America? Not quite. GDP grew from $1.5
billion in 1836 to $4.6 billion in 1861. Deflation is only fatal to
debtors. Inflation is the friend of lenders and the moneyed classes.

The American Civil War brought about the National Banking Act of
1863, which created a network of national banks. Politicians always need
bankers to fight their wars and Abraham Lincoln was no different. By
1870 there were 1,638 national banks. This did not eliminate the booms
and busts that punctuate human history, but the booms and busts were not
scientifically created by a small cabal of bankers. With thousands of
banks, those who made bad lending decisions failed. The economy
withstood the periodic panics and continued to grow. The GDP of the U.S.
grew from $7.6 billion in 1863 to $39 billion by 1913, with virtually
no inflation. The Federal government ran surpluses or very small
deficits during this entire time period. These facts refute the argument
that a strong central bank was necessary to keep our economic system
operating smoothly. It seems the Big Lie was not invented by the Nazis.


Creature from Jekyll Island – Control the Money, Control the Country

“I am a most unhappy man. I have unwittingly ruined my country. A
great industrial nation is controlled by its system of credit. Our
system of credit is concentrated. The growth of the nation, therefore,
and all our activities are in the hands of a few men. No longer a
government by free opinion, no longer a government by conviction and
vote of majority, but a government by the opinion and duress of a small
group of dominant men.”
President Woodrow Wilson

Any impartial assessment of inflation throughout the history of the
United States confirms that from the beginning of our nation through the
War of 1812, the Mexican American War, the Civil War, the Spanish
American War and the Industrial Revolution, the country experienced
virtually no inflation as bankers were kept from controlling the U.S.
currency and our legal tender was backed by gold. The creation of the
Federal Reserve in 1913 and the closing of the gold window by Richard
Nixon in 1971 unleashed a tsunami of inflation that continues to
inundate our country today, killing the once prosperous middle class.


The Rothschilds of London understood that a fiat currency system
would benefit the few (bankers & politicians) who understood it and
the masses would be too ignorant to understand they were being screwed:

“Those few who can understand the system (check book money and
credit) will either be so interested in its profits, or so dependent on
it favors, that there will be little opposition from that class, while
on the other hand, the great body of people mentally incapable of
comprehending the tremendous advantage that capital derives from the
system, will bear it burdens without complaint, and perhaps without even
suspecting that the system is inimical to their interests.”

The House of Rothschild had been the dominant banking family in
Europe for two centuries. They were known for making fortunes during
Panics and War. Some claimed they would cause Panics in order to take
advantage of those who panicked. American bankers learned the lesson
well. The Panic of 1907 was the used as the reason for creating the
Federal Reserve. A small cabal of powerful U.S. banking interests
understood that if they could control the currency of the U.S., they
could control the country, its politicians, and its people.

In 1906, Frank Vanderlip, Vice President of the Rockefeller owned
National City Bank, convinced many of New York’s banking establishment
they needed a banker-controlled central bank that could serve the
nation’s financial system. Up to that time, the House of Morgan had
filled that role. JP Morgan had initiated previous panics in order to
initiate stronger control over the banking system. Morgan initiated the
Panic of 1907 by circulating rumors the Knickerbocker Bank and Trust Co.
of America was going broke. There was a run on the banks creating a
financial crisis which began to solidify support for a central banking
system. During this panic Paul Warburg, a Rothschild associate, wrote an
essay called “A Plan for a Modified Central Bank” which called for a Central Bank in which 50% would be owned by the government and 50% by the nation’s banks.

In November 1910 a secret conference took place on Jekyll Island off
the coast of Georgia. Those in attendance were: JP Morgan, Paul Warburg,
John D. Rockefeller, Bernard Baruch, Senator Nelson Aldrich, Colonel
House, Frank Vanderlip, Benjamin Strong, Charles Norton, Jacob Schiff,
and Henry Davison. From this meeting of the most powerful bankers and
politicians in the country came the plan for a Central Bank. This
conference was unknown until 1933. In 1935, Frank Vanderlip wrote in the
Saturday Evening Post: “I do not feel it is any exaggeration
to speak of our secret expedition to Jekyll Island as the occasion of
the actual conception of what eventually became the Federal Reserve

Behind the scenes these powerful men were formulating the plan for a
Federal Reserve System. There was no outcry from the public to implement
this plan. The public knew nothing of this. The Aldrich Plan was
renamed the Federal Reserve Act and pushed forward by Paul Warburg and
Colonel House. Warburg essentially wrote the Act and pressured
Congressmen to see his way or lose the next election. Colonel House, who
had socialist leanings, was the top advisor to President Wilson.

The Glass Bill (the House version of the final Federal Reserve Act)
had passed the House on September 18, 1913 by 287 to 85. On December 19,
1913, the Senate passed their version by a vote of 54-34. More than
forty important differences in the House and Senate versions remained to
be settled, and the opponents of the bill in both houses of Congress
were led to believe that many weeks would elapse before the Conference
bill would be taken up. The Congressmen prepared to leave Washington for
the annual Christmas recess, assured that the Conference bill would not
be brought up until the following year. The creators of the bill then
pulled the ultimate swindle on the American public. In a single day,
they ironed out all forty of the disputed passages in the bill and
quickly brought it to a vote. On Monday, December 22, 1913, the bill was
passed by the House 282-60 and the Senate 43-23. This meant that the
single most important piece of legislation ever passed by the Senate was
missing the votes of 26 Senators because it was passed during the
Christmas recess. President Wilson, at the urging of Bernard Baruch,
signed the bill on December 23, 1913.

File:Fed Reserve.JPG

The Road to Hell is Paved by Central Bankers

“Banking was conceived in iniquity, and was born in sin. The
Bankers own the Earth. Take it away from them, but leave them the power
to create deposits, and with the flick of the pen, they will create
enough deposits, to buy it back again. However, take it away from them,
and all the great fortunes like mine will disappear, and they ought to
disappear, for this would be a happier and better world to live in. But
if you wish to remain the slaves of Bankers, and pay the cost of your
own slavery, let them continue to create deposits.” – Sir Josiah Stamp (President of the Bank of England in the 1920′s, the second richest man in Britain)


The results speak for themselves. The Federal Reserve has been in
existence for ninety eight years and over that time the U.S. Dollar has
lost 95.6% of its purchasing power. In other terms, the bankers who have
controlled our currency since 1913 have generated 2,172% of inflation
in just under a century. In the prior one hundred years, when the
country was growing by leaps and bounds, there was virtually no
inflation. I’m not sure the average person fully understands this
concept. To put it in layman’s terms, something that cost $4.40 in 1913
will cost you $100 today. A pair of boys’ school shoes cost 98 cents in
1913. You could purchase three loaves of bread for 10 cents. You could
purchase six rolls of toilet paper for 26 cents. The truly frightening
impact on the American middle class has happened since Richard Nixon
closed the gold window in 1971 and allowed the Federal Reserve to print
money unfettered by consequences and slimy politicians to make
irresponsible unfulfilled promises as bribes for votes. This chart
should worry even the most ignorant of the masses.

Items 1971 2010/11 % Increase
Average Cost of new house $28,000 $273,000 975%
Median HH Income $10,300 $47,000 456%
Average Monthly Rent $150 $750 500%
Cost of a gallon of Gas $0.40 $3.80 950%
Average New Car Price $3,430 $29,200 851%
United States postage Stamp $0.08 $0.44 550%
Movie Ticket $1.50 $7.89 526%


Even with the proliferation of two worker households since 1971,
household income has not come close to keeping up with the costs of
daily living. The average American’s standard of living has declined
dramatically over the last forty years and they don’t even know it.
Americans have become the slaves of bankers and pay the cost of their
own slavery through inflation and debt. It is not a coincidence that
consumer debt, which was virtually non-existent prior to the 1960s,
began to take off in the 1970s and went nearly parabolic from the early
1990s until the 2008 financial collapse. As the Federal Reserve and
political class created inflation, which reduced your standard of
living, the bankers who own the Federal Reserve and control the
politicians used their slick marketing machine to convince you that
acquiring goods using vast quantities of debt was just as good as buying
things with cash you saved.

Who benefits from inflation and the issuance of trillions in debt to
average Americans? Based upon the decades of gargantuan Wall Street
profits, mammoth bonuses paid to bank executives, and fact that
Washington politicians absconded with trillions from American taxpayers
to save their Wall Street masters, it appears that bankers and
politicians are the beneficiaries. A gutted, indebted, jobless,
demoralized middle class were the recipients of the downside of
inflation and debt. Without a Central Bank issuing a fiat currency, with
no constraints, none of this could have happened.

The Federal Reserve is primarily responsible for the destruction of
the American middle class. In 1915, according the Federal Reserve annual
report, they operated with 35 total employees. Today, they operate with
over 20,000 employees and the cost to operate the system exceeds $3.3
billion. The Federal Reserve has failed on every one of its stated

  • It was created to stabilize the banking system and keep bank panics
    from occurring. Within sixteen years of its creation it caused the near
    collapse of the banking system and the Great Depression. The stagflation
    of the 1970s was caused by Fed policies. The Savings & Loan crisis
    was created by their policies. The internet bubble, housing bubble and
    eventual financial collapse were caused by Federal Reserve blunders.
    There have been 18 recessions since the creation of the Federal Reserve.
  • The stable prices mandate has been a wretched failure, as the Fed
    has manufactured 2,171% of inflation and destroyed 96% of the currency’s
    purchasing power. This manufactured inflation has enabled the creation
    of our welfare/warfare state.  
  • The Federal Reserve mandate of moderate long-term interest rates has
    clearly not been met. The Fed Funds Rate has plotted a path of extremes
    over the decades, ranging from 0% to 19%, not exactly stable. The
    Federal Reserve has consistently set rates too low, leading to credit
    bubbles, which always pop and end in recession or depression.
  • The mandate of maximum employment has also been a miserable failure.
    The easy credit policy of the Federal Reserve during the 1920s led to
    the Great Depression with unemployment rates exceeding 20%. Unemployment
    has averaged between 5% and 15% consistently since the formation of the
    Federal Reserve. The true unemployment rate today exceeds 15%.
  • The Federal Reserve was supposed to supervise and control the
    activities of banks. Instead, under Alan Greenspan and Ben Bernanke,
    they stepped aside and let banks take preposterous risks while giving an
    unspoken assurance that the Fed would clean up any messes they caused
    with their debt based enrichment schemes. This total dereliction of duty
    and gross regulatory negligence led the greatest financial collapse in

The American working middle class (Good) have been deceived by the
Federal Reserve, the banks that control them (Bad) and the Washington DC
political class (Ugly) into believing that a fiat currency, un-backed
by gold, supported by systematic inflation is beneficial to their
wealth. This has been the Big Lie for the last century and has
positioned the country for an epic collapse. Presidential candidate Ron
Paul has been the lone voice of sanity in Washington DC for the last two
decades and his assessment of the Federal Reserve while questioning Ben
Bernanke in 2009 needs to be understood by every American:

“The Federal Reserve in collaboration with the giant banks has
created the greatest financial crisis the world has ever seen. The
foolish notion that unlimited amounts of money and credit created out of
thin air can provide sustainable economic growth has delivered this
crisis to us. Instead of economic growth and stable prices, (The Fed)
has given us a system of government and finance that now threatens the
world financial and political institutions. Pursuing the same policy of
excessive spending, debt expansion and monetary inflation can only
compound the problems that prevent the required corrections. Doubling
the money supply didn’t work, quadrupling it won’t work either. 
up the bad debt of privileged institutions and dumping worthless assets
on the American people is morally wrong and economically futile

I’ve now completed three parts of the five part series, documenting the downfall of the great American Empire. Part four, Outlaw Josey Wales, will
scrutinize the looting of America by a small group of powerful,
connected, super rich men lurking in the shadows, but pulling the
strings on our puppet politicians. Lastly, Unforgiven  will detail the impending collapse of our economic system and the retribution that will be handed out to the guilty.

The smell of revolution is in the air.