This page has been archived and commenting is disabled.
Seven Men, Nine Days, One New Monetary Cartel, Pt. 2
Thus, on a wintery day in November 1910, seven men retreated
to JP Morgan’s private Jekyll Island resort to plan a system of banking that
would address all of these problems, while simultaneously expanding their power
and influence over the US banking system.
G. Edward Griffin, in The
Creature From Jekyll Island, puts their primary goals as the following:
1)
To stop the growing influence of smaller banks and
increase the Anglo-American banking giants’ grip on the US financial system
2)
To shift US banking to a more “loan heavy” structure
thereby expanding the monetary base more dramatically (making money more
“elastic”)
3)
To pool all national banks reserves and set nation-wide
standards for loans to reserves ratios, thereby minimizing the risks of bank
runs and failure
4)
To establish a means of shifting the losses from bank
failures away from the banks and onto the public
And finally…
5)
To develop a PR campaign that would result in the US
populace accepting the implementation of a full-scale private banking cartel
I do not have time to detail the precise proceedings of the
meetings these men held over their nine day stay at Jekyll Island, nor is there
room to explain precisely how they infiltrated the US political system and
managed to introduce a banking plan that was written by Frank Vanderlip and
Benjamin Strong (who represented the Rockefeller and Morgan families,
respectively) as if it were a bill produced by
members of Congress.
However, a brief overview is as follows:
Initially Senator Aldrich proposed something quite similar
to the Bank of England, in which there would be one single large bank. However,
the Rockefeller interests (who had ample experience with the US populace’s
reaction to monopolies) thought this would be too much for Americans to
stomach. Instead, they proposed the creation of 12 regional banks largely to
maintain the illusion that the Fed would be a union, not a single central bank.
This is where the expertise of Paul Warburg, who had the
most experience with European-style central banking cartels, came in. Warburg
proposed creating a banking structure that would be more conservative at first
so that the general public would be more willing to accept it, then stripping
away the conservative props once the system was in place.
For instance, Warburg proposed the Federal Reserve Board of
Governors, a group of semi-elected officials who would meet and decide Fed
policy on interest rates and the like. This created the illusion that the Fed
would resemble a normal banking corporation with a board of directors. However,
in point of fact the Fed Board was a means to keep all the key decision making
centralized at one bank in Washington DC (close to New York where the Bank
Oligarchs were headquartered).
Warburg also came up with the name “Federal Reserve” which
evoked the sense that the organization was aligned with the Government and was
secure. His view was that the words “central” and “bank” must be avoided at all
costs.
However, the most daring and provocative of all Warburg’s
proposals was that the Fed would take over the issuance of ALL money in the US.
For the first time in US history, money would be produced by privately held
banks, NOT the US Government.
From then on, US Federal Reserve notes would be legal tender
for settling all debts public or private. Thus, if someone was owed money and
refused to accept Federal Reserve Notes (Dollars) as payment, he or she could
go to jail. The Dollar even says this in the top left corner of its face.
Obviously, getting the public to swallow this proposal
wasn’t going to be easy. The bankers put together a special committee to
investigate the plan. However, the Pujo Committee was largely a farce in which
various members of Congress (all bought out by the banks) questioned the
bankers on the more innocuous portions of the proposal.
As part of their PR campaign, the bankers also donated some
$5 million to Harvard, Princeton, and the University of Chicago (the last of
which was founded using contributions from John D Rockefeller) all of which
began turning out studies and academic papers promoting the virtues of the
proposed system.
However, the bill remained a tough pill to swallow
especially given Senator Aldrich’s close affiliation with Wall Street
(remember, he was an associate of JP Morgan). The “Aldrich Bill” as it was
known never even made it to vote in the Senate.
Splitting the Vote… and
Backing All Three Candidates
Bruised, but not defeated, the bankers knew that in order to
get their plan put into action they needed support from the very TOP of the US
Government: the President of the United States. Consequently, they engaged in
one of the most sophisticated lobbying efforts in history, backing all THREE
candidates (Taft, Wilson, and Roosevelt) in the 1912 election.
In fact, it was JP Morgan’s associates who pushed Roosevelt
to run in the first place (giving him the monetary backing to do so) in order
to pull voters from Taft who was publicly recognized as pro-Wall Street and so
would not have been as effective at getting the bankers plan implemented
without public outcry.
Thus the 1912 election consisted of three pro-Wall Street
candidates, though only one of them (Taft) was publicly recognized as such.
Roosevelt and Wilson were both backed by private banking money, though their
backers urged them to sound out an “anti Wall Street” bank campaign (which they
did with great success).
The results worked as hoped. Roosevelt served as the
“anti-bank” foil to Taft’s pro-Wall Street/ Big Business status, splitting the
vote and allowing Wilson to win with just 42% of votes (the other 58% were
split between Taft and Roosevelt). The bankers now had a supporter in the White
House, most importantly, one who was thought by the public to be against the
banks and their “Aldrich Plan” plan as it had come to be known.
Officially Backed and Bailed
Out By Uncle Sam
Ready to make a second attempt at implementing their plan,
the bankers enlisted the Democratic Chairman of the House Banking and Currency
Committee, Carter Glass, to draft a new banking bill. Glass, who by his own
admission knew nothing about banking, was merely a front, a figurehead who
denounced the Aldrich Plan, pointed out its biggest flaws to the public, and
the proposed an identical plan with the very same flaws included.
The Glass-Owen bill (it was co-sponsored by Senator Robert
Owen) moved along towards becoming law much more quickly than the Aldrich Plan,
largely due to the fact that the Wall Street banks engaged in a massive PR
campaign in whch they publicly decried it as wrong and evil and against their
interests (despite the fact they themselves wrote it).
The final coup was accomplished when William Jennings Bryan,
the most powerful Democrat in Congress, met with Glass and said he would pass
the bill provided that the money issued by the Federal Reserve was backed by
the US Government and that the Governor of the Federal Reserve would be
appointed by the President and approved by the Senate: two clauses that the
Wall Street bankers wanted but had intentionally left out of the draft so that
they could be used as “bargaining chips” to make it appear as though
compromises were made.
G. Edward Griffin, repeats a quote Fed mastermind Paul
Warburg regarding their success:
While
technically and legally the Federal Reserve note is an obligation of the United
States Government, in reality it is an obligation, the sole responsibility for
which rests on the reserve banks… The
Government could only be called to take them up after the reserve banks failed.
Here lies the ultimate triumph of the cartel, not only would
the Federal Reserve issue money (collecting interest on the loans since the
money was technically being leant to the US), but should the system ever go
bust, the US Government would be
required to step in and bailout the Federal Reserve’s losses.
It had taken three years and countless strategies and
deceptions, but on December 23 1913 the Federal Reserve Act was passed into
law. From then on, the US monetary system would be controlled by private
interests in a government-backed cartel.
The above account is a very condensed version of the history
of the Federal Reserve’s creation. The actual story is even more rife with
twists and power struggles. For those of you who are interested in knowing more
about it, I highly recommend reading The
Creature From Jekyll Island by G. Edward Griffin. It’s a stunning book and
full of revelations that range from shocking to outright infuriating.
Best Regards,
Graham Summers
PS. If you’re getting worried about the future of the stock
market and have yet to take steps to prepare for the Second Round of the
Financial Crisis… I highly suggest you download my FREE Special Report
specifying exactly how to prepare for what’s to come.
I call it The Financial
Crisis “Round Two” Survival Kit. And its 17 pages contain a wealth of
information about portfolio protection, which investments to own and how to
take out Catastrophe Insurance on the stock market (this “insurance” paid out
triple digit gains in the Autumn of 2008).
Again, this is all 100% FREE. To pick up your copy today, got
to http://www.gainspainscapital.com
and click on FREE REPORTS.
PPS. We ALSO publish a FREE Special Report on Inflation
detailing three investments that have all already SOARED as a result of the
Fed’s monetary policy.
You can access this Report at the link above.
- advertisements -
And to that
I will add that the Warburgs of the world grew up in 'genteel' society and didn't settle disputes with fists and clubs as many of 'us' did. And therein lies their Archilles heel. Once the 'shtf', those who crafted the myriad of laws to protect their interests will fall into their trap and will be hung by their necks. Violence begets violence.
'The ideas which now pass for brilliant innovations and advances are in fact mere revivals of ancient errors, and a further proof of the dictum that those who are ignorant of the past are condemned to repeat it.'
~Henry Hazlitt
--------
how quickly can Amerika become the rogue state they purport to hate?
Read Christopher Whalen's new book "Inflated" - How Money and debt Built the American Dream. America has been through this cycle of debt boom and bust many times before. All ended in tears. Bernanke thinks he has learnt from history and this time will make it different. Instead, his piling debt on debt will make it far worse.
It would be interesting to relate the association of the creation of the Federal Reserve and the development of the Federal Income Tax. It is no coincidence their mutual approval both occurred in 1913.
No, no, no! You have it all wrong! Income tax was; "only to pay for the war", "it's only temporary", and "it will never rise above 1%"... *snicker*
The real evil was not the income tax itself, but the tax withholding from our paychecks. We would see a very different picture if each of us had to pony up a fat tax check every year in April...
Duly noted. And we have done what? in 98 years to change that?
The Federal Government has usurped control of the people and the states. This is the new reality. The only way this ends is at at the end of a gun barrel and as harsh as that sounds- that is the only way. This is tyranny. We left that isle to escape the very thing that enslaves us once again. All that remains to be seen is when the jumping off moment arrives, that point when people finally wake up and say this working for bankers ain't any different than working for that King was.
"This is tyranny.' Straight up. And with every passing day that we sit on our collective asses, the liklihood increases that a violent revolution is the only remaining solution. I guess if the guns do come out, I just hope it's American on American, and not half a billion Chinamen here to open a melamine-laden can of whoop ass on us.
The Air Jordan 2011 are the option of basketball players circle the world and for this purpose, your corporation, Nike is now set one of the maximum presidents in the field of shoe from the ball better.Here comes a fresh color of the Air Jordan 1 Phat Low on which I privately was very joyous for moderately several time. The Olympic colorway of the deep-cut and well-padded Air Jordan 1 has a black nubuck surface, which is blended with a slightly shiny swoosh in crocodile leather effect. They are eye-catching and of course the purpose that the fresh Air Jordan New Arrivals Phat Low even paged Olympia but undoubtedly the colored seams. http://airjordanshoesol.com/
I still can't swallow this damned blue pill.
So let me get this straight, the Fed cannot be audited.... we have no idea where their money is going, but at any time they can say they are broke and the U.S. taxpayer has to bail them out? Is that what this is saying.
I guess I need to get the "creature from Jekyll Island".... does it go into the specifics of the Feds operations?
Is there any accounting of the Fed? I don't understand how the U.S. Government can be held as responsible for their bankruptcy if the U.S. government can't even audit them?
Makes no sense.
I keep learning........ but it just gets stranger!
An easier start is Wikipedia. It has a fairly good overview of the Federal Reserve system, along with links to other info.
Take wiki info at your own peril. What you read may very well be revised frequently to paint a different picture than reality to guide the social discourse. Or it might just be the reality of a 10 year old (whomever decides to author the content)
Instead of relying on Wiki for this important info, try this:
http://csper.org ==> renaissance 2.0 videos
or this:
http://www.freedocumentaries.org/int.php?filmID=214
(Money As Debt streaming movie)
or this:
http://www.freedocumentaries.org/int.php?filmID=243
(The Money Masters, streaming movie)
The US government does take very little risk on this one as the FED is fully immune to bankrupcy.
Try "The Money Masters" for a start.
Here's a link... should be the first thing every High School student learns... but not a word is said about the scam of the century!
This isn't a start, it's a must see... don't worry, the 'pen' will not hurt you!
http://video.google.com/videoplay?docid=-515319560256183936#
America Appears To Be Trapped in a Massive Coverup of Control Fraud and Corruption
"For once the madness starts, it can never be controlled, and will eventually come for all, and consume all."
http://jessescrossroadscafe.blogspot.com/2011/01/america-is-trapped-in-massive-coverup.html
Bill Black gets it and I agree with him right up to the point in the video (73:45) where he says SEIU and the Huffington Post are on the right track in reforming executive compensation. If the rest of his stuff wasn’t spot on, that would have caused me to dismiss the interview. Other than that, this is a highly interesting and informative (if lengthy) interview and Q and A afterwards.
Thanks for the link!
Now they meet behind closed doors at Davos and Jackson Hole planning the one world currency for when this thing goes tits up. I'd guess over 90% of America is so stupid they don't have even the most rudimentary grasp of what money is or how it works. We give our citizens a public education from K to 12 but we won't spend 1 hour teaching them one of the most important lessons in life. I love America but God Dam. Why do the people have to be so fucking ignorant and complacent? I hate FRN's. 42 million silver eagles last year. At least some of the public is starting to wake up.
"They dont want a population of citizens capable of critical thinking. They dont want well informed, well educated people capable of critical thinking. They're not interested in that . . . that doesnt help them. Thats against their interests. That's right.
They don't want people who are smart enough to sit around a kitchen table and think about how badly they're getting screwed by a system that threw them overboard 30 *****' years ago. They don't want that.
You know what they want? They want obedient workers . . . Obedient workers, people who are just smart enough to run the machines and do the paperwork. And just dumb enough to passively accept all these increasingly shitty jobs with the lower pay, the longer hours, the reduced benefits, the end of overtime and vanishing pension that disappears the minute you go to collect it, and now theyre coming for your Social Security money. "
George Carlin
The power of the pyramid is in the base. You provide the toil of labour... understand why not owning the tools of capital has resulted in today's wealth concentration. Understand the 1961 call to e-volution as outlined in Kelso's Capitalist Manifesto and the New Capitalists :-
http://www.kelsoinstitute.org/downloadable-books.html
Be Free!
The quote "For the first time in US history, money would be produced by privately held banks, NOT the US Government." is perhaps not quite accurate. Early colonial history is full of private banks that minted their own money, often times without issue. There were even a number of merchants who issued tokens that served as money within communities, again often without any issue. (You can see these at any coin show). Going abroad from US history, there are many instances in the world where money first appears as private issue, and only when it becomes successful does government cast its eye on the process and usurp it, often initially as a desire to obtain the seigniorage.
Don't take this wrong, I'm no fan of the Fed. But the problem doesn't lie with private issue, it lies with manipulative practices. Time and time again, people with a need for a medium of exchange invent something that serves their purpose. Often without government involvement. And the invented money works just fine, a servant of the people, until one of three things happens to mess it up. 1) The producer of the money gets carried away with printing, and the money debases due to oversupply, 2) Fractional Reserve Lending does the same thing, while also setting up a system that funnels interest profits to the Lenders, or 3) Debt Based Money, as when some charlatan works out a scheme whereby he gets paid interest for the chore of printing up money out of thin air (as in the unholy alliance between the Fed and the Treasury, for example).
Modern takes on privately produced money, like GoldMoney or Liberty Dollars, are a *good* thing. In fact, people are more likely to be highly vigilant in regards to the underpinnings of private money, where governments tend to place themselves above the need for audit.
Very likely, the no issue came from the exceptional situation of the US: a full continent to grab. Monetizing others'wealth works well until the rate of monetization beats the rate of robbing physical wealth. At this point, the scheme starts to go off tracks.
This is good stuff. Most people are unaware of how with.sinking funds and self finance we almost took.control of the.financial.system from.the.eastern and european banks. Isnt.it.strange that interest payments on business debt are tax deductible while earned income and.distribution of such is not? Our tax.code is biased toward.debt based finance all for the benefit of the banking cartel. I pray.for.st vincent mccruden to.strike.them all down!
end th ef fed ...
.
Renaissance 2.0Lesson 1
http://www.csper.org/renaissance-20.html