Evidence of Fractional reserve banking has been found in Cuneiform tablets dating as far back as ancient Babylon. The practice was widespread across the Middle East. It is worth noting, that according to the bible, Jesus threw the moneychangers out the temple and was crucified within a week. Following the rise of the Christian era across Europe, the practice of usury, that is, the practice of lending of money at an exorbitant interest rate was outlawed.
Over time the Vatican loosened these laws, first with Khazars Jews and then for the Knights Templar.
Johannes Gutenberg in 1439 invented the printing press. This gave education to the previously ignorant masses, feudalism began to sought of change. This was the forerunner to the reformation of the church. Wars then broke out all over the Christian states.
Over the next couple of centuries and the dawning of the industrial revolution provoked unprecedented demand for the building. New housing, railways, roads, and bridges etc. were all in demand. Furthermore, industrialisation motivated unprecedented demand for steel and other commodities and/or manufacturing of these commodities.
In 1694 the bank of England was created. This was the birth of our current money system, a privately owned bank. This was accomplished but the Dutch William of Orange invading England. The Stuarts were overthrown and the private bank was established with its owners remaining a secret to this day. Although the owner’s names have never been revealed, it would be fair to assume the Dutch royal family would have been one investor. Given the time period and the strength of the Hapsburg Empire, it is more than likely their family was also involved.
The words ‘city’ refers to the ‘City of London’, an independent state within London. It has been the financial capital of the world since the days of the Knights Templars. 800 years ago the Templars built the crown temple church there and made it their home. From there England’s financial establishment grew up around it. You can find the symbol of Templar Red Cross on the Cities coat of Arms. The Cross of St George as it is known, also appears on the union jack.
The time was right for the bankers; early bankers were called goldsmiths.
If a Goldsmith had 1000oz of gold that they were keeping for their customers, then the goldsmith would also have a record of receipts totalling 1000oz of gold. The value of the gold and paper was at a 1:1 ratio this is known as the gold standard, an equal amount of gold to receipts. It was not long before goldsmiths started writing receipts for gold that they did not have and then loaning these receipts out for a fee.
A Goldsmith who had 1000oz of gold could have receipts to the value of 2000oz circulating in the public domain, and thus doubling the profit base and charge interest rates on top. This meant that only half of their money/receipts were actually backed by physical gold. At this point, receipts/paper money ceased being redeemable on a 1 to 1 basis with gold and took on a value of its own while still maintaining the illusion that it was directly exchangeable for gold.
This scenario has a paper at a 2:1 ratio with gold; only 50% of the receipts/paper money in circulation at any given time could be exchanged for gold. This was the birth of ‘Fractional Reserve Banking’. The reserve being 50%, therefore money was no long wedded to the gold standard and had taken on a unique value of its own.
It didn’t stop there. As goldsmith’s realised that very few people ever redeemed their full receipts for their gold, more and more goldsmith’s started loaning out more money that didn’t exist. Fractional Reserve Banking was building empires.
Many banks did fold as a result of customers seeking to exchange their paper money for gold and banks not being able to provide the gold were driven into bankruptcy. However, Europe was at this time, experience monumental change.
All of these changes required financial backing. The nobility of Europe were left with the options of, being left behind in the dark ages, while the rest of Europe advanced, or loaning money from bankers to grow their kingdoms. This created a debt that would have to be paid back at interest, determined by the bankers at a later date.
As Europe industrialised and waged wars, trade between European powers increased rapidly, so did alliances, and so did the debt to the bankers that the governing bodies of Europe were responsible for. At this point, the direction of social structure was now being determined by the bankers who were lending money based upon specific requirements.
Bankers were known to back both sides in wars and therefore it mattered little to them who won the war, profits was assured.
Baron Nathan Mayer Rothschild once boasted:
"I care not what puppet is placed upon the throne of England to rule the Empire on which the sun never sets. The man that controls Britain's money supply controls the British Empire, and I control the British money supply."
By the mid-1700’s The English government was in massive debt to the privately owned Bank of England. Having secured the financial control of Europe the Rothschild along with a number of other high-profile international bankers from Europe e.g. Warburg’s, etc. decide to turn their attention to the new colonies of America.
Before America declared its independence, in 1774, the currency act the parliament had banned the issuing of the bill of credit in the colonies, this made colonial script illegal, in other words England told America, you can’t print your own money. Benjamin Franklin believed this is what was behind the American Revolution and he told England so. Founders like Jefferson, Madison and Franklin were opposed to a central bank knowing it would open the door to foreign and private interest seeking to control over America's currency.
Every time a taxpayer pays their tax they’re transferring their labour to the King or Queen of England and all of their heirs they intern pass money on to the Vatican. Her heirs include all of the Presidents and high office officials, who are related to the autocracy by blood. These officials are more commonly known as esquires. An Esquire is defined as a man belonging to the high order of gentry ranking immediately below a knight. To represent the crown esquires or attorneys were used to handle the legal process of infiltrating the Americas.
John Adams, Benjamin Franklin and John Jay (Founding father of the USA) were all esquires to the crown. They negotiated Treaty of Paris 1783 on behalf of the United States. It becomes clearer now how and why the treaty seems to align with the British supposedly lost the war of independence however The United States lost the War of Independence. The Treaty of Paris did not give America title to land. The King's possessions in America were protected and governed by corporate charges.
In 1791 Alexander Hamilton established the first privately owned Central Bank of America, with 10 million dollars on a twenty-year charter. This was contrary to the US Constitution which Hamilton had signed. When the charter of the bank expired the head of the private group was exposed.
Alexander Hamilton, from New York, represented the money elite. Hamilton supported friendly relations with England’s fight for a central bank, the founders and the Southern States like Virginia and Maryland fought Hamilton on this. Hamilton proposal supported the assumption of states debts by The Federal government which would be offset by new taxes. Virginia and Maryland had already paid off most of their war debt and didn’t want to pay twice.
There was also the debate as to where to put the nation’s capital. New York and Philadelphia were popular candidates in the North, however, some people were concerned that the corruption between bankers and politics in these two financial districts were likely to corrupt the system. A comprise was reached states debts would be centralised under The Federal bank and the national capital would be in the District of Columbia on the Potomac River between Maryland and Virginia.
Hamilton was discovered by John Adams planning a coup d'état against the young US government. Despite this Hamilton’s face graces the US $10 bill to this day. In the end, Hamilton was shot dead over a private dispute but his supports for the money lenders of Great Britain got their bank. The charter for the First National bank was due to run out in 1812, Congress refused to renew the charter. Almost immediately war between America and Britain broke out.
It was Nathan Rothschild who said, “Either the application for renewal of the Charter is granted, or the United States will find itself in a most disastrous war.” This led to the war of 1812.
The Second Reserve Bank of America was established by President James Madison after the country was virtually bankrupted by the war of 1812. The two richest men in America were Stephen Girard a banker and John Jacob Astor, John Jacob made his money through fur and opium trading. They were both investors in Andrew Hamilton First Bank of America.
After the First bank was closed down the two men used their influence to have Alexander J. Dallas promoted to Treasury Secretary. Dallas uses his position to push through a new Central Bank under James Madison. Girard and Astor were major stockholders in that bank as well. The second bank was destroyed by Andrew Jackson under his Presidency.
With International bankers taking root in the colonies of America President Andrew Jackson (1829-37) made the comment 'If the American people only understood the rank injustice of our money and banking system - there would be a revolution before morning...'
In 1834 after the failure of two centralised banking systems, America established a gold standard of its own. $1 was worth approximately 1/20 of an ounce of gold. This was a fixed rate of exchange and therefore could not be inflated by governments wanting to increase their spending.
George Peabody a Rothschild associate got in on the ground floor of American railroads. Peabody was taken under the Rothschilds wing in the 1830’s and set up an office in London. From there he quickly set up himself up as a ‘go to guy’ in London for anyone wanting to invest in America. He dealt in US state bonds, canals, transatlantic cable, and railroads, he even shipped steel to the US for laying track.
In 1864 Peabody retired and turned his company over to Julius S Morgan who really got the company moving. The Company was renamed JS Morgan and Company, His son John Pierpont "J. P." Morgan backed by Rothschild money would become the most powerful banker in America. Morgan’s likeness is that that graces the game of monopoly.
Alexander Brown was a linen merchant who emigrated from Ireland to Baltimore in 1800 becoming very successful. He along with Stephen Girard and John Jacob Astor was a major stockholder invested in the Second Reserve Bank of America. His sons, George Brown and John Brown, would go on to establish one of the largest merchant banks in America Brown Brother & Co and a London branch as well Brown Shipley & Company.
The Browns have always had a close ties to the Bank of England, in fact, it was an unwritten law that the banks Board of Directors must always include a Brown-Shipley member. One of them Lord Montagu Norman, 1st Baron Norman (Bank of England Governor 1916 – 1944) served longer than anyone in history.
Brown was closely connected to the Rothschilds, It was thought George Peabody that Brown were welcomed into the Rothschild circle of power through the Illuminati. The Rothschilds two closest allies were the Schiff and Warburg families. The Warburg family name is legendary in banking. MM Warburg and Co based in Hamburg is the world oldest privately funded bank. The Schiff family shared a house with the Rothschilds in Frankfurt.
Two factors contributed to the Rothschild banking success, one was to take advantage of financial panics, and the other was to create alliances. John Jacob Astor used an agent Jacob B Taylor to make his real estate deal in order to conceal his identity. Nathan Rothschild and his son Lionel did the same tact they used Taylor's son Moses.
After Jackson shut down the 2nd National Reserve Bank, the National City Bank of New York grew to prominence. Moses Taylor with Rothschild backing drew two panics in 1837 and 1857 and bought up stock, and took the bank over. The bank grew from the remanence of Hamilton First Central bank, with a list of directors and stockholders that read like a who’s who of banking:
Moses Taylor, James Stillman, Cleveland H Dodge, William A Rockefeller, Jacob Schiff, EH Harriman, John D Rockefeller, JP Morgan, JP Morgan Jnr, Frank A Vanderlip, Robert S Lovett, Percy A Rockefeller, James Stillman Rockefeller. It remains one of the busiest banks in the world today under the name Citibank.
The Rothschilds had their sights set on reclaiming America. A divide and conquer strategy would be used by creating a War between North and South America. The North was to be a British colony annexed to Canada financed and controlled by Lionel Rothschild. The South was to be a French colony financed and controlled by James De Rothschild. Lincoln’s main problem shifted from slavery, which he had outlawed, to how he was going to pay for the defence of America from the international bankers who were destroying it.
August Belmont was a registered agent Rothschild banking family in Europe came to the United States and quickly became the leading seller of bonds for The Federal Government. He’s the person who got the money to start the Civil War. At the same time, he was quietly buying up all the Southern American bonds. It was a banking deal.
Even Chancellor Otto von Bismarck of Germany is on the record in saying the in 1860’s in the United States was contrived by the Rothschilds to split the country in half. So they could regain North America for the bankers in France and Britain.
Though slavery is generally regarded as the catalyst for the American civil war the truth is far from it. The North was partly funded by the Bank of England and the South by the French Rothschilds. Slavery was used as a ‘divide and conquer’ strategy to destabilise the North and South. The Rothschild’s were heavy involved in the slave trade to the colonies and therefore could cease the trade at any time.
The bulk of the British army was in Canada while the bulk of the French army was in Mexico. The two countries were going to bleed each other dry. The only man who knew what was going on was Abraham Lincoln. That’s why Lincoln became the first American President to print their own money, known as ‘Greenbacks’.
Lincoln came up with an idea of ‘Greenback’. The government would print its own interest-free currency which later on would be redeemable in gold. The bankers wouldn’t stand for this. On 14th April 1865, Lincoln was assassinated by John Wilkes Booth. Booth was a member of the Knights of the Golden Circle.
National City Bank of New York was originally called City bank of New York as was its sister bank of Cleveland, They both became national banks in 1865 when they received a charter to print national currency. At the same time Lincoln who had been issuing his own currency the greenback was killed.
The difference between the greenback and National City banks were; the Greenbacks were printed by the Treasury and had no interest attached to it, whereas the National money printed by the national Banks of America were interest accumulating debt notes. Only one other president in history tried to issue interest-free treasury notes, JFK, they killed him too.
In the decade between 1860 and 1870 over 20,000 miles of railway track was laid, linking east to West and North to South and proving a way to move grain and cotton to the growing cities. All this required loans, and investors were more than eager to accommodate just to get their foot in the door of this exploding economy. The Rothschilds were no exception, they were pioneers in railroads on the other side of the Atlantic.
After the civil war, the United States was financially weakened, low on resources and still struggling to put the country back together America needed money. The international bankers was right there to lend America all that it needed.
In February of 1871, Congress cut a debt with the Rothschild bankers in incurring a debt, which allowed the establishment of a new government controlled by foreign money interests under the legislative act of 1871 the United States incorporated as a commercial enterprise to do business for profit. The United States of America changed from a country into a corporation.
What is a corporation? According to a dictionary definition, it is; a company or group of people authorised to act as a single entity (legally a person) and recognized as such in colour of law.
This act of treason changed The District of Colombia into a different form of the country with different laws and the different way the United States was run. The USA now incorporated could borrow huge sums of money from the commercial bankers. The debt got so high by 1933 the USA would have to file for bankruptcy. The 50 states are separate from the District of Columbia. The other 50 states are subsidiaries of the District of Columbia. This is why each different state has different laws. Only a King or Queen can rule over a country that’s why The United States has a President, to make decisions on behalf of the King or Queen.
Washington DC operates under the Roman law of lex fori; concerns relations across different legal jurisdictions between persons, and sometimes also companies, corporations, and other legal entities. Which means the District of Columbia is answerable to the Monarch of England, who in turn is answerable to the Vatican as per the Treaty of 1213.
Jacob Schiff first came to America after the Civil War and in 1875 and started work for Kuhn, Loeb, and Company. He married co-founders Solomon Loeb’s daughter Therese Loeb and the Schiff took over the bank.
Jacob Schiff sat on the boards of many companies; Kuhn, Loeb and Company as president, National City Bank, Union Pacific, Western Union, Wells Fargo, Baltimore Ohio, Equitable Life.
After financing the Rockefeller and Harriman Empires Jacob Schiff turned his attention Russia and the rise of communism. Tsar Alexander II Russians Czar (1855 – 1881) who had sided with Lincoln against the international bankers.
Through the late 1800’s John Davison Rockefeller grew a monopoly based upon his ownership of 90% of the world’s crude oil. Rockefeller took his profits from Standard oil and started to pursue an interest in Banking. Rockefeller along with JP Morgan (an agent of Rothschild) began campaigning for a Central bank. To highlight the need for this Rockefeller and Morgan organised a number of Stock market crashes that caused a number of banks to fail.
The Tsar’s had long resisted Western banking to take root in their country. So the bankers started to formulate a plan to end Tsarists rule in Russia. Schiff right-hand man was a man named George Kennan, in the 1880’s Kennan travelled to Siberia writing articles and giving lectures on the terrible conditions in the Tsars labour camps. Influential supporters like Mark Twain joined in the campaign for changes in Russia.
Americans were growing wary of the large corporations controlling their country. They were even more startled when Morgan and Harriman who had been fighting over control of the Northern Pacific Railway, put their differences aside and formed the Northern Securities Co Trust, Founded in 1901, Rockefeller also got a piece of it. They combined several Northern Railroads under one umbrella.
Roosevelt decided to go after Northern Securities and Standard Oil for anti-trust violations, the lawsuits resulted in the breakup of both monopolies. Roosevelt was connected to the Delano and Astor families and the Roosevelts wealth date back to a powerful Dutch family. Like the Astor’s The Roosevelts owned large tracks of land in Manhattan, which Claes van Roosevelt Teddy’s Great, Great, Great, Great, Great, Grandfather purchased back in the days when New York was still a Dutch settlement of the City of New Amsterdam.
Roosevelt was said to be a Morgan man, was friend with Harriman and had accepted campaign contributions from Rockefeller. So why then did Roosevelt attack the trusts; it was nothing more than a ploy to get the people on side. The breaking up of the companies’ actually benefited the Rockefeller and the Morgans and Harridans. Roosevelt was behind The Federal Reserve all the way.
JP Morgan & Co, financed Edison to form General Electric. He bought Andrew Carnegie's steel factory combined it with other companies and turned it into USS (US Steel). In the early 1900’s Morgan and his companies controlled a billion dollars in assets.
On Morgans death he was only found to be worth of is estate was only $70 million dollars not nearly as much as expected. The truth was he was playing with someone else’s money most of the time. Morgan was one brick in a financial pyramid including Rockefeller, Harriman, Schiff and Warburg, the top tier of this was occupied by the Rothschilds. With the addition of a few other bit players; Lazard Brothers, Goldman-Sachs, Brown Brothers, J Henry Schroder Banking Co and Lehman Brothers.
Paul Warburg, often considered the father of The Federal Reserve System, married Solomon Loeb’s other daughter Nina then came to America in 1902 were joined Kuhn, Loeb and Company and Co.
Warburg owned his own bank and sat on the boards of many companies; Kuhn, Loeb and Company, Bank Manhattan as Chairman, American IG Chemical Corp, Union Pacific, Western Union, Wells Fargo, Baltimore Ohio.
Before Paul Warburg came to live in New York with Jacob Schiff, Schiff discovered two Entrepreneurs; JD Rockefeller in oil and Railway Carrier Edward H Harriman. Harriman controlled Union Pacific, Southern Lines Pacific, Illinois Central Railroad and Wells Fargo. Harriman also sat on the Board of National City Bank of New York along with Schiff. Schiff arranged the financing for both the Rockefeller and Harriman empires through Kuhn, Loeb or National City Bank of Cleveland.
In 1907, while all this trust busting was going on, JP Morgan caused a rush on one his banks ‘The Knickerbocker Trust Company’ by publishing rumours that a major bank in New York was insolvent in a bid to send people into mass hysteria and cause a run on the bank. It worked and banks were forced to call in their loans, a spiral of repossessions and bankruptcies resulted from the incident.
It was as a financial crisis that took place over a three-week period starting in mid-October, when the New York Stock Exchange fell almost 50% from its peak the previous year. The panic eventually spread throughout the nation when many state and local banks and businesses entered bankruptcy. Morgan made himself a hero by bailing out the bank with Rothschild money. This had been the plan all along. The idea behind all of this was to convince people they needed a central bank.
Wall Street used the failure of these banks as a means of selling the American public on the need for a central bank, highlighting that a ‘lender of last resort’ could bail out banks that were insolvent and therefore protect its customers from losing their saving. What was not highlighted was that the fear of bankruptcy is what kept banks responsible for their own debts and forced them to adhere to strict monetary policies that prevented them from taking unnecessary or dangerous risks with their depositors saving. A central bank would then act as a ‘safety net’ for banks that deviated from these policies and acted irresponsibly, thus making banking responsibilities weaker.
In 1909 a senate inquiry into the bank crash was headed by Senator Nelson Aldrich. Nelson Wilmarth Aldrich (JD Rockefeller’s father-in-law) was an American businessman and Republican politician. Aldrich wielded enormous power in the Senate. Interested in establishing a central bank in the United States, he became chairman of the National Monetary Commission in 1908 (Set up as a result of the previous year’s banking failures). This commission, consisting of 16 Congressman hand-picked by Aldrich, was chartered to study monetary systems and recommend long-term solutions to the Nations "banking problems". Its report, the so-called Aldrich Plan (1911), served as the basis of The Federal Reserve Act of 1913.
In 1910, on Jekyll Island, Georgia, A meeting organised by the two principal Rothschild representatives in New York, J. P. Morgan Co., and Kuhn, Loeb & Co. took place between Senator Aldrich, Assistant secretary of the Treasury; Frank Vanderlip, President of the National City Bank of New York, Paul Moritz Warburg (A German banker who was acting under orders from and financed by the Rothschild family), Benjamin Strong (J.P. Morgan), and number of other representatives of the world’s high-powered banking establishment e.g. JD Rockefeller. The basis for this meeting was to write an act establishing The Federal Reserve Bank. At the end of the week, a Bill was written; a forerunner to The Federal Reserve act.
The Jekyll Island meeting resulted in Federal Reserve act. The Bankers wrote the legislation, not the lawmakers. The Act original failed in the Senate because Aldrich insisted his name be on the bill and the Senate immediately identified it as the bankers Bill.
The Republicans realising that they didn’t have the votes to win in congress never bought the Aldrich Bill to a vote. The Bill was described as the following by Congressman Charles Lindbergh: “The Aldrich plan is the wall street plan. It means another panic, if necessary, to intimidate the people. Aldrich, paid by the government to represent the people, proposes a plan for the trusts instead”
Following the Jekyll Island meeting, an ‘education’ fund of $5 million was set up by the big banks of New York to finance the number the nation’s university leading professors to endorse the new bank.
Woodrow Wilson at Princeton University was one of the first to endorse the Bill.
Woodrow Wilson as the Democratic candidate for President made a commitment to the people of America that there would be no Central Bank was one of the campaign promises that Woodrow Wilson and the Democratic Party used win office. A promise he didn’t keep.
The International bankers then funded Woodrow Wilson's run for The Presidency, privately Wilson had already agreed to sign the bill, despite having campaigned against it. In 1913 two days before Christmas, the Glass-Owen bill as it was now known was pushed through the Senate.
The Bill was named for the chairmen of the House and Senate Banking and Currency committees who sponsored the legislation; Rep. Carter Glass, and a Democrat of Virginia, and Senator Robert Latham Owen, a Democrat of Oklahoma hence the deceptive name. The Bill was basically the same Bill that Aldrich had tried and failed to push through two years earlier.
The Second time round with what was the same Act that had failed two years earlier, Aldrich made a point of denouncing the plan in a bid to misdirect the other senators, the deception worked. The mastermind of both plans was Baron Alfred Rothschild of England.
Passengers on the Titanic included Mining Businessman Benjamin Guggenheim, Head of Macy’s Department Stores Isador Strauss and John Jacob Astor, probably one of the richest men in the world. All three would have opposed The Federal Reserve System.
The unsinkable ship was created to be the tomb for the wealthy, who opposed The Federal Reserve System. By April 1912, all opposition to The Federal Reserve was eliminated. In December of 1913, The Federal Reserve System came into being in the United States.
December 23, 1913, Just days before Christmas, when much of the senate was on vacation, having being told that nothing would be done about the new Bill until well into the new year, President Woodrow Wilson signed the Owen-Glass Act, Creating The Federal Reserve System.
A few years later, Wilson, referring to The Federal Reserve said, "I have unwittingly ruined my country".
Congressman Charles Lindbergh described the passing as the bill as such:
“This act establishes the most powerful trust on earth. When the president signs this bill, the invisible government by the money powers will be legalized. The people may not know it immediately, the but the day of reckoning is only a few years removed…..The worst legislative crime of the ages is perpetuated by this banking bill”
Up until the creation of The Federal Reserve, The Federal government was small and was paid for by tariffs and excise taxes.
The Federal Reserve of America is a privately owned institution. It is not Federal and has no reserves.
The idea behind The Federal Reserve is that it acts as a ‘bank of lending of last resort’.
Who owns The Federal Reserve banks?
1. Rothschild Bank of London
2. Warburg Bank of Hamburg
3. Rothschild Bank of Berlin
4. Lehman Brothers of New York
5. Lazard Brothers of Paris
6. Kuhn Loeb Bank of New York
7. Israel Moses Seif Banks of Italy
8. Goldman, Sachs of New York
9. Warburg Bank of Amsterdam
10. Chase Manhattan Bank of New York.
While these names were initially kept secret, their names appeared on the paperwork relating the bankruptcy of the Corporation of the United States of America in 1933.
There were twelve regional reserve banks established around America: Boston, New York, Philadelphia, Richmond, Atlanta, Minneapolis, Chicago, Cleveland, St Louis, Kansas City, Dallas and San Francisco. It didn’t take long for the New York branch to take the leading role.
Despite there being 12 banks, New York, via Wall Street, some become the dominant supplier. As president of the New Federal Reserve, Benjamin Strong (A Morgan protégé) seized control of the board’s open market committee operations. Strong retained the dominant force at The Federal Reserve until his death in 1928.
The Board of Governors of The Federal Reserve in Washington DC control and regulate their activities. The board is made up of seven members appointed by the president. In order to fool the people into believing that the government had control over The Federal Reserve, the plan called for The Federal Reserve to be run by a board of governors appointed by the president and approved by the senate. But all the bankers had to do was ensure that their men got appointed to the board of governors. That was pretty easy; bankers have money and therefore they can buy their way into politics via significant campaign contributions, and this is what took place.
Should there be a ‘rush’ on a bank for one reason or another, then the bank needs to provide a larger amount of physical cash to meet its customer’s demands. The Federal Reserve will then print money, with nothing more than a printing press and a diary entry signifying a debt owed, and then loan it to the US Government.
The Federal Reserve then loans this money to member banks, which are experiencing a larger than normal demand for cash from their customers. The Bank is then obligated to pay back this money to the U.S Treasury at a prescribed rate of interest. The interest rate is determined by The Federal Reserve Bank. The US Government, via the treasury, is then obligated to pay back its loan to The Federal Reserve again at the interest rate determined by The Federal Reserve.
The discount rate is the interest rate set by The Federal Reserve to member banks when they borrow short term from The Federal Reserve thru the ‘discount window’. If The Federal Reserve lowers the discount rate for loans the commercial banks are more likely to borrow more from The Federal Reserve. This translates into more money in circulation and lower interest rates on loans and credit cards. The increase in money to lend translates into more money in the economy.
The Federal open market committee is responsible for directing the purchase and sale of government securities on the open market. To inflate the supply of money and credit, The Federal Reserve buys securities from a few handpicked firms with newly created money (it is important to remember here that The Federal Reserve actually print the money and then loan it to the government at an interest rate determined by The Federal Reserve). To tighten money and credit, The Federal Reserve sells securities, this is done entirely at The Federal Reserves’ discretion.
According to Devvy Kidd in her book “Why a Bankrupt America”, If The Federal Reserve wants to print 1,000 one-hundred ($100) bills, their total cost for ink, paper, plates, labour, etc. would be approximately $23.00. Now, if you do the math, the total cost of 10,000 bills would be $230.00 ($.023 x 10,000). But, and here's the catch - 10,000 $100 bills equals $1,000,000! So, The Federal Reserve can "create" a million dollars, and then lend it to the U.S. Government (with interest) for a total cost of $230.00.”
Colonel Edward M House deserves most of the credit for getting Wilson to sign the Bill. House’s father had made his fortune running blockades during the Civil War and trading with British investors including the Rothschilds. Colonel House was solidly in the circle of the money trust and was Wilson's most trusted advisor, maintain a residence in the Whitehouse. When Wilson Signed the Act Jacob Schiff sent a letter to Colonel house thanking him.
In 1913 The Federal reserve Bank wasn’t the only bill pushed through congress, they also created federal income tax law. They also created the private company called the IRS (Internal Revenue Service) with is business being registered in Puerto Rico. This law was also championed by Nelson Wilmarth Aldrich.
Income tax was the government's guarantee that it could pay back The Federal Reserve, the money it borrowed. The Federal income tax is unconstitutional as it is a direct unapportioned tax all taxes have to be apportioned (divide up and share out).
The amendment was never ratified by the number of states required therefore it is not a legitimate organisation, and American are under no obligation to pay their taxes. As of the present day, roughly 25% of the average worker wage is taxed, that’s the equivalent of working 3 months a year for free.
All that money goes to pay the interest on the fraudulent Federal Reserve Bank. Despite the law not being ratified the IRS, Internal Revenue Service was set up. There is no law in existence that requires Americans to pay income tax. Income tax is an enslavement of the entire human race.
The law was important because bankers now had in place a system (The Federal Reserve) that would run up a virtually unlimited federal debt, with the income tax acting as a guarantee of debt repayment, although the debt could never be fully repaid.
Guaranteeing The Federal Reserve loan via direct taxation of the people of the United States was a copy of the same system adopted by the Bank of England 250 years earlier.
A year after the creation of The Federal Reserve Bill, Congressman Lindbergh describe what is known today as the business cycle:
“To cause high prices, all The Federal Reserve will do will be to lower the re discount rate…, producing an expansion of credit and raising the stock market, then when… business men are adjusted to these conditions, it can check… prosperity in mid-career by arbitrarily raising the rate of interest”
”It can cause the pendulum of a rising and falling market to swing gently back a forth by slight changes in the discount rate, or cause violent fluctuations by a greater rate variation, and in either case it will possess inside information as to the financial conditions and advance knowledge of the coming changes, either up or down.”
”This is the strangest, most dangerous advantage ever placed in the hands of a specials privilege class by any government that ever existed.”
“The system is private, conducted for the sole purpose of obtaining the greatest possible profits from the use of other people’s money.”
”They know in advance when to create panics to their advantage. They also know when to stop the panic. Inflation and deflation work equally well for them when they control finance….” Congressman Charles August Lindbergh
Lindbergh did not realize that most European nations had already been seduced by the same form of economic trickery via the International bankers years or centuries earlier.
Lindbergh also mentioned that The Federal Reserve, within one year of its creation had already cornered the market on gold.
“Already The Federal Reserve Bank has cornered the gold and gold certificated.” Charles August Lindbergh.
Eight months later, the Jesuits had sufficient funding through The Federal Reserve to begin World War One.
The international bankers love war, it means huge loans to all governments and as they back both sides they never lose. In 1908 oil was discovered in Persia, much of the Middle East at the time was controlled by The Ottomans who with Germans were building a Berlin railroad to Baghdad. One of the real reason for war was the invasion of Iraq.
The Federal Government suddenly had a huge influx of money into Washington via personal income tax from the people and an unlimited amount of money being created via The Federal Reserve. It was now time for a war. Wars are great for Central bankers; political issues take a backseat for bankers because nothing creates debt as much as war does. War gives bankers and governments a reason to abandon the gold standard, and just start printing massive amounts of money to pay soldiers, buy war supplies help allies etc.
In 1914 cars, planes, locomotives, ships and diesel engines had been invented all which all ran on oil. Standard Oil in America and the Rothschilds in Europe through Royal Dutch Shell, had the market cornered. The US, England, and Germany had just changed their Naval ships from coal to oil, making huge profits for the oil producers and refiners.
In 1914 when war broke out in Europe American wanted nothing to do with the war. Wilson declared neutrality, however, behind the scenes, the administration was looking for any excuse to join in the war. Woodrow Wilson’s top advisor was Colonel Edward House, who was great friends with the banks and the bankers wanted a World War.
According to Secretary of State William Jennings Bryan said “The large banking interests were deeply interested in the World War because of the wide opportunities for large profits”
In a documented phone call between Colonel Edward House and England Foreign minister Sir Edward Grey, Grey said “What will Americans do if Germans sink an Ocean liner with Americans 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”.
On May 7th, 1915, at the suggestion of Grey a ship called the Lusitania was sent into German waters and was submarine torpedoed killing 1,198 people, although the Germans only shot one torpedo two explosions were heard. The Lusitania was carrying 4200 small arms munitions and 1250 shrapnel cases. The Allies were the group of people who would benefit by America joining the war.
The Germans took out advertisements in The New York Times warning people not to travel on the Lusitania because it was going to be sunk. What were a thousand odd civilians lives worth if it brought America into the war? The false flag plan worked perfectly.
The First World War cost Americans 320,000 deaths, JD Rockefeller made $200 million off of it. The war cost about $30 billion to America, which was borrowed from The Federal Reserve at interest.
The Federal Reserve can also manipulate the nation’s money supply by raising or lowering the reserve requirement. Banks are required to set aside a percentage of their deposits as reserves to meet their depositor’s demands.
In World War I, The British Rothschilds loaned money to the British government, The German Rothschild load money to the German government and the French Rothschilds loaned money to the French Government.
In America, JP Morgan was the sales agent for war materials to both The British and The French. Six months into the war, Morgan became the largest consumer on earth spending $10 million dollars a day. His officers were mobbed by brokers and sales people trying to cut a deal.
Bernard M. Baruch (1870–1965), was appointed by President Wilson, to head the ‘War Industries Board’ which controlled the industrial establishment of the country for three years. According to historian James Perloff, the Rockefellers and Baruch profited by $200 million dollars during the war.
"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. We have come to be one of the worst ruled, one of the most completely controlled and dominated Governments in the civilized world no longer a Government by free opinion, no longer a Government by conviction and the vote of the majority, but a Government by the opinion and duress of a small group of dominant men." -Woodrow Wilson, after signing The Federal Reserve into existence.
There were more critics of The Federal Reserve then Lindbergh however:
Congressman Louis McFadden chairman of the house banking and currency committee from 1920-31 was an outspoken critic of The Federal Reserve System. “The Federal Reserve is one of the most corrupt institutions the world has ever seen. There is not a man within the sound of my voice who does not know that this nation is run by the international bankers.”
Congressman Louis McFadden said that The Federal Reserve Act brought about “A super-state controlled by international banker and international industrialists acting together to enslave the world for their own pleasure” McFadden saw the international aspect of The Federal Reserve.
From Thomas Edison “If our nation can issue a dollar bond, it can issue a dollar bill. The element that makes the bond good makes the bill good, also. The difference between the bond and the bill is that the bond lets money brokers collect twice the amount of the bond and an additional 20%, whereas the currency pays nobody but those who contribute directly in some useful way.”
“It is absurd to say that our country can issue $30 million dollars in bonds and $30 million in currency. Both are promises to pay, but one promise fattens the usurers and the other helps the people”
And even Woodrow Wilson on seeing the outcome of his creation. “Some of the biggest men in the United States, in the field of commerce and manufacture, are afraid of something. They know that there is a power somewhere so organised, so subtle, so watchful, so complete, and so pervasive, that they had better not speak above their breath when they speak in condemnation of it”
Before his death in 1919, former President Theodore Roosevelt, warned the people of America what was going on. As reported in the New York Times of 20th March 1923 “These international bankers and Rockefeller-Standard Oil interest control the majority of newspapers and columns of these papers to club into submission or drive out of the public offices officials who refuse to do the bidding of the powerful corrupt cliques which compose the invisible government” however, no-one was prepared to pay attention to the warnings during this time of prosperity.
Profit was one aspect of the war for the Central banks, however revenge and greater economic control were also part of the plan. Russia was the last of the European nations to not surrender their sovereignty to the privately owned independent bank scheme.
Russia, who had given assistance to Lincoln during the America Civil War, as they were both fighting the same enemy, (The Rothschilds central banking system), now had to pay for its interference in the global central bank expansion. Three years after World War I broke out, the Russian revolution toppled the Tsar of Russia and communism took root in Russia. All funded by private reserve banks.
As World War I raged on, Leon Trotsky was in New York City writing for a Communist newspaper and regularly keeping company with Jacob Schiff (Kuhn Loeb and Co). Schiff bragged from his death bed that he had contributed over $20 Million towards the defeat of the Czar.
Neither Lenin nor Trotsky went to Russia because the poor, huddled masses begged for their help, they only arrived later after being sent by the powerful elite in Europe and the U.S. Trotsky, married the daughter, Natalia Sedova. One of one of Rothschild's closest associates, banker Abram Zhivotovsky and therefore became part of the Illuminati clan.
National Communists like Lenin got in the way, however. Lenin overruled Trotsky and made peace with Germany (Treaty of Brest-Litovsk, 1918.). Lenin soon came to understand that although he was the dictator of Russia, there was someone else pulling the financial strings.
This is evident in the following quote “The state does not function as we desire. The car does not obey. A man is at the wheel and seems to lead it, but the car does not drive in the desired direction. It moves as another force wishes” – Vladimir Lenin.
Paul Warburg's brother Max who ran the family business in Germany and sunk money into funding the Trotsky, Lenin revolution.
Louis McFadden exposed this situation to Americans when he said “The course of Russian history has, indeed, been greatly affected by the operations of the international bankers…..The Soviet Government has been given United States Treasury funds by The Federal Reserve Board... Acting through the Chase Bank (Rockefeller)”
“England has drawn money from us through The Federal Reserve banks and has re-lent it at high rates of interest to the Soviet Government…The Dnieper story Dam was built with funds unlawfully taken from the United States Treasury by the corrupt and dishonest Federal Reserve Board and Federal Reserve Banks”
This scenario begs the question, why would the ambassadors of capitalism install a communist style government structure when theoretic communism is capitalism's sworn enemy. The answer is simple, if you are to view communism as a control the wealth philosophy, which it is, and has to be to work, rather than a share the wealth situation, then the paradox of capitalists funding communism is no longer a contradiction but merely another form a social control and economic expansion.
From 1914 to 1919 The Federal Reserve increased the money supply by 100 percent. Resulting in small loans to banks and the public. In 1920 The Federal Reserve called in mass percentages of the outstanding loans resulting in Banks having called in massive amounts of loans.
Just like in 1907, bank runs and bankruptcies occurred. Over 5400 banks outside of The Federal Reserve collapsed, further consolidating the monopoly of the international bankers. Congressman Charles Langberg publically condemned The Federal Reserve a number of times.
Following World War I, The Central banks had won control of the financial structures of many nations. It was now time to create a world government. At The Paris peace conference, the proposal to initiate a World government was giving top priority. The idea of the League of Nations was put forward. Nationalism, however, won out, much to the surprise of Paul Warburg and Bernard Baruch, who attended the conference with President Wilson. The US congress refused to ratify the League of Nations and without financial contribution from the US, the League of Nations died.
Enter the roaring Twenties. With a new Republican President, Warren Harding (1921-23), who opposed the League of Nations, America, set about an unprecedented period of economic growth and prosperity. This was in spite of the fact that America, as a result of the war now had a debt 10 times the size of its civil war debt.
After his election, Harding, reduced income tax and increased tariffs to record highs. This plan worked well to pay off foreign debt without transferring the debt to the American people. Harding, however, died in what appears to questionable circumstances, during his second year in office. No autopsy was performed and different sources put his death down to pneumonia, food poisoning, and even a heart attack.
Harding’s Vice President Calvin Coolidge (1923-29) continued his policies and over that eight year period, the American debt was reduced by 38% the most significant reduction ever achieved by any administration. However feeding the economic posterity was The Federal Reserve, who had increased the money supply by 65% over this period.
From 1920 to 1929 The Federal Reserve again increased the money supply by 62 percent. By this stage, the margin loan had been invented. The margin loan meant that the borrower had to only put down 10% with the of 90% being covered by the broker meaning a person could own $1000 worth of stock with only $100 down. There was a catch to this loan, it could be called in at any time on a 24-hour notice. This is termed a margin call. A margin call is the selling of the stock with the loan.
As a result of this prosperity businesses where expanding and used large amounts of credit to do so. In July 1929 Paul Warburg sent out a secret advisory to his friends that a collapse was imminent. A few month before October 1929 JD Rockefeller, Joseph Kennedy, Bernard Baruch, and JP Morgan and other cartel insiders quietly left the Stock Market moving their cash into and into gold shortly before the crash.
On 24th October 1929, the New York financiers who furnished the margin loans started calling them in on mass. This sparked an instantaneous sell off in the stock market, by people trying to cover margin loans. It then caused massive bank runs for the same reason, this collapsed over 16,000 banks.
In August of 1929, The Federal Reserve began to tighten the money supply. On 24th October of 1929, the big New York bankers called in their 24-hour broker call loans, this meant that all the brokers and customers had to dump their stocks on the market at whatever cost they could get to repay the loans. As a result, the market tumbled on the day is known as ‘Black Thursday’.
The money didn’t go missing however, it had merely be reallocated to a far smaller minority. For example during the period of 1929-1933 Joseph Kennedy’s personal wealth grow from $40 million to $100 million.
This meant the international bankers were able to buy up thousands of banks and corporations at pennies on the dollar. The greatest robbery in American history. The Federal Reserve didn’t increase the money supply in contrary it, led to the Great depression.
“The Federal Reserve definitely caused the Great depression by contrary the about of currency in circulation by one-third from 1929 to 1933” Milton Friedman, Nobel Prize winning economist.
The founder of IBM was a devout follower of Hitler, Thomas J. Watson had supplied his punch cards computer and IBM technicians to the Nazi’s for use in the death camps. Tattoos on camp victims were IBM human identification numbers, which fed into the computers. IBM had used similar punch cards as early as 1928, in a Jamaican race mixing study. The first real computers were literally invented by a eugenicist for eugenics.
On 21st September, 1931 Great Britain came off the gold standard. The effect was an instant devaluing of the British pound worldwide. Within Britain, this action stimulated manufacturing and exports and to create some relief during the depression. Suddenly the rest of the world was flooded with British manufactured goods.
Internationally, however, the devaluation of the pound was costly for these people who had invested in the pound based upon its ties to gold. Many Europeans pulled their money from the pound and invested it in the USA gold back dollar, then immediately converted the currency into gold. The result in the US was disastrous. Gold flowed out of the US to Europe. With less gold in the US, the dollar became devalued, as did its agricultural and industrial.
The BIS (Bank for International Settlements) controls all Reserve banks internationally. The BIS is owned by The Federal Reserve, The Bank of England, Bank of Italy, Bank of Canada, Swiss National Bank, Nederlandsche Bank, Bundesbank Bank (German Federal Bank) and Bank of France. It is a secretive institution that is accountable to no-one. It is located in Basel Switzerland. It’s owned by the same controlling families that control other international banks.
Roosevelt’s Secretary of the Treasury, Henry Morgenthau, documented how the US Federal Reserve and other international banks help build the Nazis. In 1933 Hitler came to power. In Hjalmar Schacht was re-appointment as Reichsbank president and as the Germany's representative to the BIS. It was Schacht job to refinance the Third Reich. By then Germany had stopped paying reparations for WWI.
Congressman Louis McFadden began to bring impeachment cases against members of the board of The Federal Reserve. Having survived two previous assassination attempts McFadden was poisoned before he could bring the impeachment charges.
By 1933, and having destroyed society through the Great Depression, the international bankers decided that the Gold standard needed to be removed from the currency. Under the pretence of ending the depression came the 1933 gold seizure.
On June 5, 1933, at the behest of the president Franklin Delano Roosevelt congress decided that it was illegal for the American people to trade in gold.
Under the threat of imprisonment for 10 years, everyone in America was required to hand in their gold to the treasury, basically robbing the people of America of the little wealth they had left. At the end of 1933, the gold standard was abolished.
This coincided with the Corporation of the United States going bankrupt. The people if America were forced to hand over their gold as a means of covering the cost of their bankrupt nation. Of course no-one knew about the bankruptcy.
For the next six months President Roosevelt pursued an erratic monetary course. Every day a new gold price was declared, on a basis no one could figure out. What is clear now is that the price of gold has continued to rise higher and higher while the value of the United States currency has plummeted.
If you look at a Federal Reserve note prior to 1933 it says its “redeemable in gold”. After 1933 it says its “is legal tender”, which is means it was backed by nothing. This is a bit confusing, on an international level the United States dollar was still loosely attacked to the gold standard, however, the currency was no longer redeemable in gold.
America had been considered a safe haven for gold during the war, and many European nations had shipped their gold there for safe keeping. Montagu Norman, Governor of the Bank of England from 1920 to 1949 met frequently with Benjamin Strong of The Federal Reserve of New York. Norman was determined to retrieve the gold lost by Britain to America during the war.
All gold confiscated by the Roosevelt government was supposed to be housed at Fort Knox, however Fort Knox has never been audited. It is believed that the foreign banks who owned the Federal Reserve have taken the gold a remunerations for the bankruptcy. If there is nothing suspicious going the why won’t the government audit the Federal Reserve?
In the 1930’s the BIS (Bank for International Settlements) became a secret meeting place for all the Central Reserve Banks of Europe. It invested $100 million in Germany. During the Second World War Germany kept paying the interest on the loans, the money, in turn, went to pay the shareholders of the BIS, the shareholders including the Bank of England, so there was a clear conflict of interest going on.
None of the BIS banks made moral judgments over Germany, they just did business with them. In that manner, they were similar to American companies like Ford, IBM and Standard Oil who just did business with the Nazis.
On 7th December 1941, Japan attacked Pearl Habour, signalling the Americans entry into World War II. The attack was known about weeks in advance and could have been prevented. President Franklin Delano Roosevelt whose family had been New York bankers since 18th Century and whose uncle Fredrick was on the original board of directors of The Federal Reserve was sympathetic to the International Bankers.
Roosevelt said in a documented memo of 25th November 141 to Henry Stimson, Secretary of war “The question was how should we maneuver them into firing the first shot…It was desirable to make sure the 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 on Pearl Habour, Roosevelt had done everything possible to anger the Japanese; He halted all imports of American petroleum, He froze all Japanese assets in the US, He aided Japans enemies by giving aid and military assistance to China. Three days before the attack Australian intelligence told Roosevelt about a Japanese task force moving towards Pearl Habour. Roosevelt ignored it.
24,000 soldiers were killed in Pearl Habour. Before Pearl Habour, 85% of Americans weren't interested in the war. On the days after Pearl Habour one million men volunteered for the war.
It should be noted that Germany’s war was supported by two major companies; IG Farben made 85% of the German Explosives and created Zyklon B the infamous for its use by Nazi Germany during the Holocaust to murder approximately one million people in gas chambers.
One of the unspoken partners of IG Farben was JD Rockefellers US Standard Oil. The German airport could not have operated without a certain additive that was patented by Rockefeller Oil. The bombing of London was made possible by a 20 million dollar sale by Standard Oil to the IG Farben.
The Union Banking Corporation of New York City. It financed numerous aspects of Hitler’s rise to power and purchased actual material during the war it was also a money laundering operation for the Nazi which was eventually exposed for having millions of dollars of Nazi money in its vaults.
The bank was run by Prescott Bush and Averell Harriman. The Union Banking Corporation of New York City was eventually ceased under the trading with enemies act. In 1942 the assets of the Union Bank run by Prescott Bush and Avril Harriman were seized by J Edgar Hoover, as they were operating as Hitler’s bank in in the US.
After World War II, the bankers profiteered again this time through the Marshall Plan.
It needs to be remembered that Britain lied about being broke. With the City of London financial district in London and the fact, the American is subservient to them means that London ordered the United States to rebuilt Europe. It is important to remember that it was the same bankers were funding both sides in the both World Wars.
The bankers then lent more money to the United States and the Countries of Europe to rebuild. It was a case of huge profiteering during the war and then more profiteering for the rebuilding. It cannot be forgotten that all of these countries including Russia had privately owned Central Banks. The European Central banks chose not to spend the money directly but allow the United States Federal Reserve to go into further debt, with the goal to overpower governments.
The Marshall Plan started the IMF (International Monetary Fund) and the World Bank.
Curtis Dall FRD’s Son-in-law “The United Nations is but a long-range, international banking apparatus clearly set up for financial and economic profit by a small group of powerful One-World revolutionaries, hungry for profit and power. The One-World government leaders and their ever close bankers have now acquired full control of the money and credit machinery of the U.S. via the creation of the privately owned Federal Reserve bank." - From his book - FDR: My Exploited Father-in-law.
By 1956, the Rockefeller brothers had spread their influence worldwide. Largely due to their financial interest in the 1913 Federal Reserve act. Which had allowed them to create such organisations as the Council on Foreign Relations and the United Nations. Through their financial and philanthropic enterprises, they were extremely influential in global politics. They control Honeywell, New York life Equable and Monsanto among many other companies.
The Rockefeller’s own the majority stake in Exxon-Mobil, which is world’s largest publically traded oil company and the world’s largest company by revenue. Exxon holds the record for highest profits by any company ever. They also own JP Morgan Chase which is the largest banking company in America by deposit and market capital, it also runs the largest hedge fund in America. The Rockefeller family commissioned the first designs for the World Trade Centre. They have also been involved in numerous other real estate deals across America.
This cabal who own the US Federal reserve and The Bank of England, took over the Australia Reserve Bank in 1959. They now own every central bank in the world except North Korea, Cuba and Iran.
On 4th June 1963, JFK signed Executive Order 11110 which called for the issuance of $4,292,893,815 in United States notes backed by silver calling it the United States note, returning to the US government the power to issue currency, without going through The Federal Reserve. This money was issued free of debt and free of interest. It was enough money to allow the nation to conduct its business without needing to involve The Federal Reserve.
Five months later JFK was assassinated, and all ‘Kennedy bills’ were quickly withdrawn from circulation.
Executive Order 11110 remains in effect today, although the assassination of JFK was a warning to future presidents who would think to eliminate the US debt by eliminating The Federal Reserve’s control over the creation of money.
According to the IMF by 1966 foreign central banks held 14 billion in United States dollars however in the United States only 3.2 billion in gold was allocated to cover foreign holdings. The Federal Reserve was printing more money than it could actually back.
As more congressmen and informed citizens became aware of the CFR and The Federal Reserve during the 1950’s and 60’s global planners realised that they had to be more covert. Their American and European money would have to be sent to Japanese industrialists and Arab oil refineries who would use it to buy up western businesses and real estate. With this system in place, economic woes in the west resulting from the globalists control could then be blamed on the Japanese and Arabs.
The United States currency since the 1970’s has been, with a few notable exceptions, the only currency used to buy and sell oil making it the petrodollar. Prior to 1971, the US government was tentatively tied to the gold standard. In 1971 Richard Nixon removed the dollar from its last dwindling attachment to the gold standard. Nixon took the United States off the gold stand. He called it temporary suspension however it is clear today that it was permanent.
So how does the system work?
The United States decides it needs 10 billion dollars so it calls The Federal Reserve. The Federal Reserve responds with fine, we’ll buy 10 billion worth of government bonds from you. The government takes some official looking bits of paper and paints some designs on them, call them bond, and sends them over to The Federal Reserve. In turn the government draws up official pieces of paper and calls them Federal Reserve notes.
The Federal Reserve then takes these notes and exchange them for the bonds. The government the deposits the money in a bank account and calls them money. The government is then free to lend them out. And that is how 10 billion dollars is created. Only 3% of the government money exists in paper money, the other 97% only exists in digital form.
The banking system used by The Federal Reserve and is known as Fractional reserve banking.
When the money is creates out of nothing, the government is promising to pay back the money plus interest to The Federal Reserve or bank. This means it is impossible to pay back the entire debt to the Federal Reserve because there is never enough money in circulation to cover the debt and the interest.
That 10 billion dollars now become part of the bank's wealth, this is where fractional reserve banking comes in. As quoted in Modern Money Mechanics: a bank “must maintain legally required reserves… equal to a prescribed percentage of deposits” it goes on to say “under current regulations, the reserve requirements against most transactions is 10 percent” This means that of the 10 billion
$10, 000, 0000, 000
$1, 000, 0000, 000 is held as the excessive reserve
$9, 000, 0000, 000 is used as the basis for new loans
The $9, 000, 0000, 000 is created on top of the $10, 000, 0000, 000 making a total of $19, 000, 0000, 000
The process is then repeated
$9, 0000, 000 is held as the excessive reserve
$8, 100, 000, 000 is used as the basis for new loans
The $8, 100, 000, 000 is created on top of the $900, 0000, 000 making a total of $27, 100, 0000, 000
$8, 810, 000, 000 is held as the excessive reserve
$87.290, 000, 000 is used as the basis for new loans
The $87.290, 000, 000 is created on top of the $8, 100, 000, 000 making a total of $34, 390, 0000, 000
This process can go on forever, approximately $90, 000, 000, 000 can be created on top of the initial $10, 000, 000 created by The Federal Reserve. For every deposit created out of thin air about 9 times that amount can be created. This is how the money supply is expanded.
What is giving the new money value, answer the old money? Because the current monitory system is not backed by anything it steals its value from the money already in circulation. This is referred to as inflation. Prices rise diminishing the purchasing price of every dollar. Inflation is a hidden tax on the public. The act of expanding the money supply without there being a proportional expansion of goods and services in the economy will always debase a currency. One dollar in 1913 required $21.60 in 2007 to match it. That is a 96% devaluation since The Federal Reserve came into being.
A 1976 report on banking identified three Rothschild-owned banks in America The National City Bank of Cleveland, First City bank of Houston and the First National Bank of Seattle.
According to a report, entitled The Federal Reserve directives, the study of corporate bank influences conducted by the committee on currency and housing also representative in August 1976 It was concluded that all major financial banking cartels of the United States are all subsidiaries of the London Bank of England. In other words, the NM Rothschild Bank owns every major bank in the United States. This list includes Lehman Brothers, Morgan Stanley, recently dissolved from the creative economic crisis national City Bank, Chase Manhattan Bank, and many others.
David Rockefeller, founder of the Trilateral Commission and The United Nations, in an address to a meeting of The Trilateral Commission, in June 1991 said:
"We are grateful to The Washington Post, The New York Times, Time Magazine and other great publications whose directors have attended our meetings and respected their promises of discretion for almost forty years. It would have been impossible for us to develop our plan for the world if we had been subject to the bright lights of publicity during those years. But, the work is now much more sophisticated and prepared to march towards a world government”.
At The Federal Reserve’s own Website, on the frequently asked questions page, under the “Question who owns The Federal Reserve?” The following expansion is given, “The Federal Reserve System is not "owned" by anyone and is not a private, profit-making institution. Instead, it is an independent entity within the government, having both public purposes and private aspects.”
This appears to be a classic example of George Orwell’s “Doublespeak” in his book 1984. Here is an obvious question then, How can an organisation, be independent of the government and not be private?
Continuing with its answer to the question, the site goes on to say “It is considered an independent central bank because its decisions do not have to be ratified by the President or anyone else in the executive or legislative branch of government, it does not receive funding appropriated by the Congress, and the terms of the members of the Board of Governors span multiple presidential and congressional terms. However, The Federal Reserve is subject to oversight by the Congress” If the Federal Reserve do not receive funding from the congress, then who is funding it?
The Federal Reserve, being subject to oversight by congress, sounds like a protection device for the people, however, in its entire 105-year history of The Federal Reserve has not been audited not even once. It is not that the proposal to audit.
The auditing of the Federal Reserve has been tabled before congress; it’s just that those who do put the proposals forward end up losing their seats before any action can be taken. Their opposition seems to always win at the next congressional election. There are also those, like Congressman Larry McDonald, who died suddenly, shortly after tabling the motion.
If there were no debts in our money system there wouldn’t be any money. All money is created out of debt. Therefore all money is debt and all debt is money.
The last time the national debt for the US was paid off was 1835 when President Andrew Jackson closed down the second Federal Reserve Bank of America.
As the Central Reserve bank lends money to the government at interest it is impossible to pay back the entire debt. The end result is slavery for all of mankind.
It is important to remember that The Federal Reserve is a privately owned institution. It makes its own policies and it loans money at interest that can never be paid back in full.
We are looking at a world where all countries have a national debt. If there is a debt there has to be a creditor and that’s where the power lies. Almost every country in the world has a government who borrow money from privately owned reserve banks, local and foreign.
How to fix this situation? Abolish private central reserve banks. The government should print the money; however, this may be easy to say, however ‘the powers that be’ will not surrender easily. Given that these people who operate in the shadows, they have time and time again murdered their opposition, Congressman Larry McDonald. Louis McFadden, John Kennedy etc.
This means that today all currencies in the world are back by nothing. The whole currency system in the world is an allusion. The only value attacked to money is what we imagine it is.
Due to inflation, the debts owed to Federal Reserve banks throughout the world can never be paid back. All currency are debt based currencies. Approximately 70 percent of the world’s money is created by banks. The rest is created by The Federal Reserve banks which they create out of nothing and loan to governments. No agency or branch of government controls The Federal Reserve. Because these loans have interest attached to them there is never enough money to pay the debts off. To stay afloat the economy must grow perpetually this is obviously an unsustainable situation.
William Of Orange
Nathan Mayer Rothschild
1st Central Bank of America
2nd Central Bank of America
John Jacob Astor
Julius S Morgan
Brown Bothers Banking
Jacob B Taylor
Bank of England
District of Columbia
John Davison Rockefeller Sr
Edward Henry Harriman
Northern Pacific Railway Co.
Theodore Roosevelt Jr.
John Pierpont Morgan Snr
Nelson Wilmarth Aldrich
Jekyll Island 1910
Albert Salomon Anselm von Rothschild
John Jacob Astor
Robert Latham Owen
Charles August Lindbergh
Internal Revenue Service
Tsar Alexander II
Coronel Edward Mamdel House
Sir Edward Grey
Bernard M. Baruch
John Pierpont "Jack" Morgan Jr
Frank A Vanderlip
Thomas J. Watson
Joseph P Kennedy
Franklin Delano Roosevelt
Executive Order 6102 Recalling All the Gold
The Great Depression
Executive Order 11110
John Fitzgerald Kennedy
Richard Milhous Nixon