My paper on the federal reserve due tomorrow. Critique please.

Meet your Master

Federal Reserve creation
Since our great countries’ birth our founding fathers wrestled with the idea of a Central Bank. Due to the costly Revolutionary war and the debt incurred from it, the government sought a way to pay back the value owed for the original fiat currency, the Continental. Reluctantly George Washington signed the First National Bank into law after much debate between Hamilton and Jefferson. The banks charter was for 20 years and was allowed to expire by James Madison.
However, our nation once again stricken with another large debt after the War of 1812, sought to keep inflation from overwhelming our economy. To do this President James Madison allowed for a Second National Bank to be created. Andrew Jackson (ironically on the face of the $20 bill) vehemently opposed the Central banking system and vetoed the bill to renew the charter.
"You are a den of vipers. I intend to rout you out and by the Eternal God I will rout you out. If the people only understood the rank injustice of our money and banking system, there would be a revolution before morning." --Andrew Jackson 1828
Though the bill was vetoed, the bank still had time left on its charter and remained on the economic stage until 1836 where it was eventually phased into and ordinary bank in Philadelphia. But power seeks to remain in power and the idea of Central banking was not done rearing its ugly head.
After a series of Bank runs propagated by Central banking interest such as J.P. Morgan in the late 1800’s and early 1900’s the stage was set yet again for a new Central Bank to be brought into power. Rumors were spread that the small banks of the day were unstable and lacked the funds. This of course led to widespread panic and distrust in the current banks.
The Federal Reserve system was originally drafted in or around 1910 by the bankers of the world in a secret meeting on Jekyll Island off the coast of Brunswick, Georgia. The meeting was so secret that the members were not allowed to refer to each other by full names. When the approximately 100 members came together, it is believed that one sixth of the worlds’ wealth was present at the meeting. Amongst the names listed in attendance were a few recognizable names such as J.P. Morgan, Rockefeller, McCormick, Pulitzer, and Herbert Lehman from today’s infamous Lehman Brothers. These very clever and powerful men had one goal in mind… to control the monetary policy of the United States of America.
The bill was actually drafted in two forms in case the first one failed to pass through the system. The first bill, sponsored by Senator Nelson W. Aldrich, was destined for failure because of his strong ties to J.P. Morgan and other known banking interest. This forced the bankers to go with their second plan which was the Federal Reserve Act of 1913 as we know it. However the bankers knew that the current president would veto any such bill so they needed to put in place a president that would bend to their will. This president was Woodrow Wilson. The bankers poured tons of money into Wilsons’ presidential campaign. To further insure the victory of their candidate they convinced former president Roosevelt to run for election which split the Republican vote tremendously. Once Wilson was in office it was the right time to introduce the Federal Reserve Act.
The Glass Bill (H.R. 7837) was introduced in the House or Representatives and after being first referred to the Banking and Currency Committee it was reported back to the House where it passed. The bill was then introduced in the Senate and the name was changed to the Glass-Owens Bill since Senator Owen made changes to it to restrict the power of the bankers. As we learned in class, when a bill passes between the House and the Senate with differences between the bills, the bill goes to a Conference Committee to have the differences hammered out. Here the bill was quickly prepared, without any public hearings and re-introduced to Congress on December 23, 1913 as the Federal Reserve Act. While many were away from Washington, D.C. for Christmas the bill was passed by the House 298 to 60, sent to the Senate where it passed 43 to 25 and within an hour of the Senate vote President Wilson signed it into law and the bankers were given control of the nations’ wealth and money supply.
Later Woodrow Wilson had this to say:
"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."
What the fed has grown into
Since the birth of the Federal Reserve the institution has become more and more subversive, and through a campaign of propaganda has drifted away as a focus of the American public. No system on earth is as widely accepted on faith alone as our monetary system. We as Americans spend money everyday yet pay no attention to where it came from or what its true value is. Yet money is the lifeblood of our economy, has become the necessary evil and we are forced to work our entire lives for it or forego most of the basic necessities of life.
Since 1913 our dollar has been on a steady decline in value. The rate at which it has been falling was not always as steep and as fast as it is today. At one time, our money actually held value of sorts. Our money used to be linked to gold, a commodity that has held value consistently throughout history. The same amount of gold will buy the same amount of oil or any other commodity today as it did in 1913, but everything costs more in dollars now. Our gold standard has been disrupted several times throughout our history.
During the first World War the gold standard was suspended and at first Americans were no longer able to redeem their dollars for gold. During this time foreigners could still redeem their dollars for gold. This was done to lessen the chances that other nations would drop our dollar as the world’s currency. However, due to rising exchange rates and the exodus of gold from our reserves, the United States decided to suspend gold exchange to foreigners as well.
During the great depression as other nations were abandoning the gold standard, our Federal Reserve raised interest rates to protect its gold standard vs. the dollar. This action worsened the already horrible economic situation existing at the time. This led to massive bank runs and people were spending the declining paper money on gold to protect their assets. This action made the devaluation of our dollar quicken and was further depleting our gold reserves.
In order to fight this Congress and President Roosevelt criminalized gold ownership. People were forced to hand over their property (gold) to the government and were issued paper in its place. This gave the Federal Reserve absolute control on our nation’s true measure of wealth. Thankfully, later gold was decriminalized and the public was once again able to hold something of value.
In 1975 the dollar was completely decoupled from gold giving the United States its first fully fiat currency. This is currency based solely on confidence in the dollar for value, but is called legal tender so we are forced to accept it for exchanges under penalty of law. This also gave rise to a new phenomenon… the printing of money out of thin air. The Federal Reserve was given the power to create something out of nothing, an ability formerly reserved by God alone. This is the current system we live under and this is the cause of most of our problems today.
Now if our Government needs money, we no longer have to produce anything to acquire gold or any other commodity for that matter to allow us to put more dollars into our total money supply. The process is much more mystical now. Now when our government needs more money for war, or welfare, or reparations, or whatever frivolous venture we wish to finance our treasury prints out pieces of paper with official looking pictures on it (T-Bills) and trade them for other pieces of paper with official looking pictures on it (dollars). Bottom line is… money is debt and debt is money.
What’s worse and further misunderstood and ignored by our citizenry is how under our system of fractional reserve banking, the initial dollar amount obtained by our government from the Federal Reserve gets injected directly into the national banks for borrowing and can from there be multiplied to about nine times the amount. This is done through the use of the Federal Reserve’s reserve rates which are at about ten percent. This is means that when the banks receive an injection of cash, for example ten billion, only one billion has to be held and 9 billion is available for loans. However, when someone comes to the bank and borrows the 9 billion they almost assuredly deposit it into their own bank account and the process repeats itself. The new bank can then in turn keep its new reserve amount of 900 million and is free to loan out the remaining 8.1 billion dollars. This process can be repeated an infinite amount of times but mathematically has been shown to top off at 9 times the initial amount, which works out to about 90 billion dollars when using our example of the original 10 billion. This is all money inflating our system and devaluing our dollars making both you and me poorer at an alarming rate.
Interest as slavery
‘There are two ways to enslave a nation. One is by the sword. The other is by debt.’ -John Adams
Another part of the monetary system that is almost completely overlooked and misunderstood by Americans is the idea of interest. This is the most abusive invention known to man. Whenever money is borrowed by the government from the Federal Reserve or we personally borrow from a bank there it is always expected to be paid back with accrued interest. So basically every dollar that exists must eventually be returned to a bank with interest paid as well. But, if all money originates from the central bank and loaned and expanded by the commercial banks only what is referred to as the principal is being created in the total money supply. So where is the money to cover the interest that is applied to that principal? Where is the money to pay back the original loan plus the amount expected back to cover the interest? IT DOES NOT EXIST. It is nowhere to be found. This automatically creates a system where there is not enough money to cover all expenses in the country and in our economy, which also means that defaults and bankruptcy are built into the system and are expected. Someone always has to be poor and/or homeless.
We will always owe more money that exists to pay off the debts. But owe money to whom? Who do we owe 11.5 trillion dollars of debt to as a nation? Who do our children’s children owe this massive debt to, the largest debt known to history? Who?
Effect on foreign policy
This system of fraudulently creating money out of thin air has paved the way for multiple abuses to our system of government, the original intent of our founding fathers and to our Constitution. George Washington set the precedent of having a non-intervention policy when it comes to waging wars and alliances with other nations. He, and many others, understood that war was costly and that to pay for these wars the people must be taxed. People don’t like to be taxed. But with our current system we can just create money that is needed to fight whatever wars we feel like it instead of only fighting whatever wars are absolutely necessary. Today we spend over 10 billion dollars a month in Iraq, if the money had to actually come from the wealth of our nation we would have ran out of money long ago and a venture such as this would have been nearly impossible. But now if we need money for bombs the government can just print T-bills and magically more money appears. What is not stated however is that that money is still owed back to someone and now the tax hits us indirectly as an inflation tax, the hidden tax.
In fact, to truly understand the Federal Reserve one must acknowledge the relationship of our particular Federal Reserve to the other Central Banking systems world-wide. It is no coincidence that, as seen very recently, that the Central Banks of the world act in unison when lowering interest rates or injecting liquidity into their respective banks world-wide. Just as it is no coincidence that almost all leaders in this country and world-wide are sympathetic and apologetic on behalf of the banks. This is not by accident. It is by design.
“I sincerely believe that banking establishments are more dangerous than standing armies, and that the principle of spending money to be paid by posterity, under the name of funding, is but swindling futurity on a large scale.” – Thomas Jefferson
With money being the driving force behind elections, the measure by which one can determine the level attainable by politicians, is there any wonder why our politicians no longer listen to or decide based upon the will of the people as opposed to the wishes of the banking elite? For example look at the 700 billion dollar bailout bill passed through congress recently. On its method of passage alone it is unconstitutional since it originated in the Senate as opposed to the House where all bills that raise revenue are supposed to initiate. Not to mention the fact that nowhere in the Constitution does it state that the government, nor the Executive Branch for that matter, are to have the power to appropriate money by creating more debt to give it to the Corporations and Banking establishments. But not a one politician will dare to stand up and alert the public or expose the fraud of the system, because that would be biting the hand that feeds them. These benefactors of this new system also just happen to be the largest contributors to the presidential campaigns of both Barrack Obama and John McCain.
“Let me issue and control a nation’s money supply and I care not who makes its laws” – Amschel Bauer Mayer Rothschild
Throughout history, international banking interests have more often than not supported both sides of a war because it is in their interest to have multiple countries running up their debts. This keeps the people of the country enslaved in debt, and perpetuates their system thus increasing their power. They owe no allegiance to any country, they only seek to expand their sphere of influence. No matter which country or countries win, the banks always come out the winner. And it is obvious that they have total control over the United States of America.
The Federal Reserve is merely an extension of a global cabal that is intent on consolidating and controlling as much power as possible. The Federal Reserve is Federal in name only, is owned by private bankers and though the President and Congress appoint its chairman, that position is merely the public face of a dangerous institution. Helicopter Ben (Bernanke) has as much input and control over the actions of the Federal Reserve as President Bush has control of our country. They both are merely the figure heads that everyone knows by name. The real masters are the men behind the curtain that we are not supposed to pay attention to.
“If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks...will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered.... The issuing power should be taken from the banks and restored to the people, to whom it properly belongs. – Thomas Jefferson
If we are ever to be a truly free society again, this is the first step to reach that goal.
END THE FED
END THE FED
END THE FED
I lost my voice screaming this multiple times this year. By the eternal god, I will rout them out if it is the only thing of greatness I ever do… for my daughter, for my country and because I swore an oath to the Constitution.