Then Jesus entered the temple and drove out all who were selling
and buying in the temple, and he overturned the tables of the money changers and the seats
of those who sold doves. He said to them, "It is written, 'My house shall be called a
house of prayer'; but you are making it a den of robbers."
Matthew 21, verses 12-13
"All of the perplexities, confusion, and distress in America arises, not from the
defects of the Constitution or Confederation, not from want of honor or virtue, so much as
from downright ignorance of the nature of coin, credit, and circulation."
-- John Adams, Founding Father
(In a letter to Thomas Jefferson, 1787)
Congressman Louis T. McFadden said the following during a speech before Congress on June
10, 1932:
"Mr. Chairman, we have in this country one of the most corrupt institutions the
world has ever known. I refer to the Federal Reserve Board and the Federal Reserve banks.
The Federal Reserve Board, a government board, has cheated the Government of the United
States and the people of the United States out of enough money to pay the national debt.
The depredations and the iniquities of the Federal Reserve Board and the Federal Reserve
banks acting together have cost this country enough money to pay the national debt several
times over. This evil institution has impoverished and ruined the people of the United
States; has bankrupted itself, and has practically bankrupted our government. It has done
this through the defects of the law under which it operates, through the maladministration
of that law by the Federal Reserve Board, and through the corrupt practices of the moneyed
vultures who control it.
Some people think the Federal Reserve banks are United States Government institutions.
They are not government institutions. They are private credit monopolies which prey upon
the people of the United States for the benefit of themselves and their foreign swindlers;
and rich and predatory money lenders. In that dark crew of financial pirates there are
those who would cut a man's throat to get a dollar out of his pocket; there are those who
send money into states to buy votes to control our legislation; and there are those who
maintain an international propaganda for the purpose of deceiving us and wheedling us into
the granting of new concessions which will permit them to cover up their past misdeeds and
set again in motion their gigantic train of crime."
PERVASIVE MONEY PROBLEMS IN AMERICA
Americans, living in "the richest nation on earth," always seem to be short
of money. Women are working in unprecedented numbers, men hope for overtime hours to earn
more. Many take part-time jobs evenings and weekends. Children look for odd jobs to earn
spending money. But the family debt climbs higher. And psychologists say one of the
biggest causes of family quarrels and breakups is "arguments over money." Much
of this trouble can be traced to our "counterfeit money" system, which leaves
government free to perpetrate the most destructive monetary and economic crimes.
On the national scale, in just ten years the federal debt has grown from less than one
trillion dollars to over four trillion. (In
Chapter Nine we will
discover that the real national debt is much bigger.) The annual interest on that debt is
over $250 billion. And now we are told (not asked) that we must come up with between $200
billion and $500 billion to "save" the S & L institutions. All this for only
one reason: to protect and perpetuate a fundamentally flawed system whose only object is
to enrich and empower the Federal Reserve bankers who own and operate the system.
During the last few years America has become by far the largest debtor nation of the
world. And our politicians have made their "contributions" with boundless
"generosity!" John Danforth, Republican senator from Missouri, was reported in
the Ar
izona Republic of April 21, 1992 as follows:
"I have never seen more senators express discontent with their jobs. ... I think
the major cause is that, deep down in our hearts, we have been accomplices to doing
something terrible and unforgivable to this wonderful country. Deep down in our hearts, we
know that we have bankrupted America and that we have given our children a legacy of
bankruptcy. ... We have defrauded our country to get ourselves elected."
PAPER CURRENCY CAN BE A VERY PROFITABLE HUMAN CREATION
Economists use the word "create" when speaking of the process by which paper
currency comes into existence. "Creation" means making something that did not
exist before. Lumbermen make boards from trees, workers build houses from lumber, and
factories manufacture automobiles from metal, glass, and other materials. But in all these
cases they did not
create. They only changed existing materials into more usable
and more valuable forms. Not so with currency. Here we actually
create something
out of nothing. A piece of paper of little value is printed so it becomes worth a piece of
lumber. That difference in value is literally
created out of nothing. And with
different numbers printed on the piece of paper, it can buy the automobile or even the
house. The
value of the paper has been
created in the true sense of the
word.
Paper currency can be created honestly or fraudulently. Gold and silver certificates,
being receipts for gold and silver, with a guarantee to pay the bearer on demand, are
honest paper currency. Federal Reserve Notes currently in circulation constitute
fraudulent, counterfeit paper currency.
Counterfeit paper currency is very cheap to "create," and whoever prints it
makes a huge profit! Builders work hard to make a profit of 5% above their cost in
building a house. Auto makers sell their cars 1% to 2% above the cost of manufacture,
which is considered good business. But counterfeit paper currency
"manufacturers" have no limit on their profits since a few cents will print a $1
bill, a $100 bill, or even a $10,000 bill.
THE DANGER OF A MONOPOLISTIC CENTRAL BANK
Thomas Jefferson understood the danger of putting the power to control the currency of
a nation in the hands of a few individuals in the form of a
monopolistic central
bank. This is why he opposed Alexander Hamilton's scheme to establish the First Bank of
the United States. Let me repeat what he said in 1791:
"If the American people ever allow the banks to control issuance of their
currency, first by inflation and then by deflation, the banks and corporations that grow
up around them will deprive the people of all property until their children will wake up
homeless on the continent their fathers occupied."
President Andrew Jackson also understood the danger. He refused to renew the charter (a
grant of
monopoly) of the Second Bank of the United States. In 1836 Jackson said to
the bankers trying to persuade him to renew their charter (so they could continue their
harmful
monopoly):
"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."
On December 22, 1913, the day before President Woodrow Wilson signed the Federal
Reserve Act, Congressman Charles A. Lindberg Sr. (father of the famous aviator) said to
the House:
"This Act establishes the most gigantic trust** on earth. When the President signs
this bill, the invisible government by the Monetary Power will be legalized. The people
may not know it immediately, but the day of reckoning is only a few years removed. The
trusts** will soon realize that they have gone too far even for their own good. The people
must make a declaration of independence to relieve themselves from the Monetary Power.
This they will be able to do by taking control of Congress. Wall Streeters could not cheat
us if you Senators and Representatives did not make a humbug of Congress... The greatest
crime of Congress is its currency system. The worst legislative crime of the ages is
perpetrated by this banking bill. The caucus and the party bosses have again operated and
prevented the people from getting the benefit of their own government."
[** At that time the word "trust" was synonymous with "
monopoly."]
THE DEPRESSION OF THE 1930s
In 1930 America did not lack industrial capacity, fertile farmland, skilled or willing
workers, or industrious families. It had an extensive and highly efficient transportation
system in railroads, road networks, and inland and ocean waterways. Communications between
regions and localities were the best in the world, utilizing telephone, teletype, radio,
and a well-operated mail system. No war had ravaged the cities or the countryside, no
pestilence weakened the population, nor had famine stalked the land.
In A
merica's Great Depression, Murray N. Rothbard, Professor of Economics at the
University of Nevada, Las Vegas, describes how the creation of the Federal Reserve System
increased the bankers' ability to inflate the currency supply sixfold. During 1923 to 1929
the bankers did inflate the currency supply enormously. Such an artificial inflation
inevitably brings about a subsequent need for deflation. Federal Reserve bankers, the
source of America's currency and credit, reduced the currency supply by refusing loans to
stable and growing industries, stores, and farmers. At the same time they demanded payment
on existing loans. They also increased interest rates. Currency was rapidly taken out of
circulation and was not replaced. America was put in a depression and in deep trouble.
Goods were available to be purchased, jobs waiting to be done, but little currency was
available. Twenty-five percent of workers were laid off. Banks took possession of tens of
thousands of farms and businesses through foreclosure. Gloom settled over America.
The contraction of the currency supply caused the stock market to collapse and the
ensuing depression. Seven months before the collapse, Paul Warburg, the main architect of
the Federal Reserve System, in his annual report to the stockholders of his International
Acceptance Bank, wrote:
"If the orgies of unrestrained speculation are permitted to spread, the ultimate
collapse is certain not only to affect the speculators themselves, but to bring about a
general depression involving the entire country."
Both the inflation and the deflation, causing the depression, had been planned - as
predicted by Jefferson in 1791!
CURRENCY INFLATION ENDED THE "GREAT DEPRESSION"
The depression lasted until 1939, when the Federal Reserve System began to send large
amounts of currency into circulation for military preparedness. As soon as the currency
supply went up, people were hired back to work, farms sold their produce instead of
plowing it under, mines reopened, factories began to hum, both industrial and residential
construction began anew, and the "Great Depression" was over. Some politicians
were blamed for it and others took credit for ending it. The truth was that bankers caused
it and bankers ended it. The people were never told that simple truth. The bankers who
"manufacture" and "control" our currency have used their huge profits
to "buy" our politicians, and ultimately to control our government.
POWER TO COIN AND REGULATE MONEY
When we see the disastrous results of an artificially created shortage of currency, we
can better understand why our Founding Fathers insisted on placing the power to create and
control money in the hands of Congress. Article I, Section 8 of the U.S. Constitution
states, "The Congress shall have power... to coin money, regulate the value
thereof... "
But in 1913 Congress passed the "Federal Reserve Act," relinquishing the
power to create and control money to the Federal Reserve Corporation, a private company
owned and controlled by bankers. The word "Federal" was used only to deceive the
people. The term "central bank" was carefully avoided. The Federal Reserve Act
created a Board of Directors, the Federal Reserve Board, to run the Federal Reserve
Corporation with a m
onopoly to create and control the currency of the United
States.
This infamous legislation was accompanied with appropriate fanfare and propaganda that
it would "remove money from politics" and "prevent boom and bust from
hurting our citizens." The people were not told then, and still do not know today,
that the Federal Reserve Corporation is a private m
onopoly controlled by bankers,
operated for the financial gain of the bankers at the expense of the people.
Since that day of infamy a small group of privileged people who lend us "our
money," have accrued to themselves all of the profits of printing paper currency -
and more! Since 1913 they have created trillions of dollars in currency and credit, which
as their own personal property, they then lend to our government and our people, with
interest. "The rich get richer and the poor get poorer" had become the secret
policy of our national government.
The main architect of the Federal Reserve System was Paul Moritz Warburg, who came from
a famous German banking family. The kingpin who steered the Federal Reserve Act through
Congress was Senator Nelson Aldrich, Chairman of the Finance Committee. He was the
maternal grandfather of Nelson A. Rockefeller, of Standard Oil and Chase Manhattan Bank.
Aldrich's daughter, Abby Greene Aldrich, married John D. Rockefeller, Jr. in 1901. At the
time, many people regarded Senator Aldrich as the Rockefeller family's mouthpiece in the
Senate.
The Federal Reserve Act was passed during the presidency of Woodrow Wilson. Just before
he died Wilson is reported to have said that he had been deceived and "I have
betrayed my country." He also said:
"A great industrial nation is controlled by its system of credit. Our system of
credit has been concentrated. The growth of the nation 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 world - no longer a government of free
opinion, no longer a government by conviction and vote of the majority, but a government
by the opinion and duress of small groups of dominant men."
WHO OWNS THE FEDERAL RESERVE?
There has been much speculation about who owns the Federal Reserve Corporation. It has
been one of the best kept secrets of the century, because the Federal Reserve Act Act of
1913 provided that the names of the owner banks be kept secret. However, R. E. McMaster
publisher of the newsletter
The Reaper, asked his Swiss banking contacts which
banks hold the controlling stock in the Federal Reserve Corporation. The answer:
- Rothschild Banks of London and Berlin
- Lazard Brothers Bank of Paris
- Israel Moses Sieff Banks of Italy
- Warburg Bank of Hamburg and Amsterdam
- Lehman Brothers Bank of New York
- Kuhn Loeb Bank of New York
- Chase Manhattan Bank of New York
- Goldman Sachs Bank of New York.
In
The Secrets Of The Federal Reserve, Eustace Mullins indicates that, because
the Federal Reserve Bank of New York sets interest rates and controls the daily supply and
price of currency throughout the U.S., the owners of that bank are the real directors of
the entire system. Mullins states:
"The shareholders of these banks which own the stock of the Federal Reserve Bank
of New York are the people who have controlled our political and economic destinies since
1914. They are the Rothschilds, Lazard Freres (Eugene Mayer), Israel Sieff, Kuhn Loeb
Company, Warburg Company, Lehman Brothers, Goldman Sachs, the Rockefeller family, and the
J.P. Morgan interests."
THEY PRINT IT - WE BORROW IT AND PAY THEM INTEREST
An example of the process of currency creation and its conversion into "people's
debt" will aid our understanding. The Federal Government, having spent more than it
has taken from its citizens in taxes, needs (for the sake of illustration) $1 billion.
Since it does not have the currency, and Congress has given away its authority to create
it, the government must go to the creators for the $1 billion. But the Federal Reserve, a
private corporation, does not give its currency away for free! The bankers are willing to
deliver $1 billion in currency or credit to the federal government in exchange for the
government's agreement to pay it back with interest. So Congress authorizes the Treasury
Department to print $1 billion in U.S. Bonds, which are then delivered to the Federal
Reserve bankers. (The bonds are a kind of "IOU" that bears interest.)
The U.S. Treasury prints $1 billion in bank notes. The printing cost is about $20.62
per 1,000 bills - it costs the same irrespective of the denomination - the cost of
printing a $1 note is about the same as for a $100 note: about .0206 cents. The Federal
Reserve "buys" these bills from the U.S. Treasury, paying only for the printing
costs. The bills are then exchanged at full face value for the bonds. The government uses
the currency to pay its obligations. What are the results of this fantastic transaction?
Well, the government's bills are paid all right, but the U.S. Government has now indebted
the people to the Federal Reserve bankers for $1 billion plus interest!
Since this process has been going on since 1913, the people are now indebted to the
bankers to the tune of trillions of dollars. The people are taxed billions of dollars each
month just to pay the interest on this "national debt." With both the principal
and the interest climbing every month, there is no hope of ever paying off this
"debt." The working people of the United States now "owe" the
approximately 300 banking families and their consorts more than the assessed value of all
the assets in the United States. And realize, the bankers got all this for the cost of
paper, ink, and bookkeeping!
THE MOUNTAIN OF DEBT
You say this is terrible! Yes it is, but this is only part of the sordid story. Under
this "debt-currency" system, those U.S. Bonds referred to above have now become
assets of the banks, called their "reserve." Regular commercial banks use these
assets to issue loans to individual and commercial customers. Since the banking laws
require only about a 12% reserve, this means the banking fraternity can lend up to eight
times the amount of the bonds they have on hand. As a result of the $1 billion discussed
here, they can lend $8 billion to private customers at interest. This means that together
with the $1 billion lent to the government, the bankers can lend out $9 billion at
interest for the original cost to them of about $400,000 for the printing! And because the
Federal Reserve bankers have been granted a
monopoly, the only way our people and
businesses can get currency to carry on trade and expand industry and farming is to borrow
it from the bankers!
USING DEBT TO EXPAND CONTROL
In addition to the vast wealth drawn to them through this almost unlimited usury, the
bankers who control the currency are able to approve or disapprove large loans to big and
successful corporations. Bankers can refuse a loan, thereby depressing the price of a
corporation's shares on the stock exchange. This enables the bankers' agents to buy large
blocks of the shares at depressed prices. Then they can approve a multi-million dollar
loan to the corporation, resulting in its share price rising, allowing the bankers' agents
to sell the shares, sometimes making huge profits. In this manner billions of dollars are
made to buy even more shares.
Using this method since 1913, the bankers and their agents have purchased secret or
open control of almost every large corporation in America. Using that control, they force
the corporations to borrow huge sums from their banks so that corporate earnings are
partially siphoned off in the form of interest paid to the banks. This leaves little
"actual profit" to be paid out as dividends.
When bankers lend more, the currency supply expands. When they reign in the loans, the
currency supply contracts. By expanding or contracting the currency supply, the bankers
can make the stock market go up or down at their pockets' content! They can cause
"busts and booms" almost as they wish.
That is why President James A. Garfield said, "Whoever controls the volume of
money in any country is absolute master of all industry and commerce."
At the time of writing (July, 1992), the New York stock market has been hovering around
record highs for months, while the economy continues to suffer a protracted slump. The
bankers no doubt want the stock market to be high and the economy to recover before the
coming presidential election. Keep in mind that they endorse all three presidential
candidates. Tweedledum and Tweedledee; or Louie, Huey, and Dewey; or Larry, Mo, and Curly
- they are all in the hands of the bankers.
WHY LOANS EVENTUALLY SHRINK THE CURRENCY SUPPLY
The only way new currency goes into circulation in America under this wicked system is
when someone borrows it from a banker. When people are confident of success, they borrow
more currency, which increases the currency supply, and all seem to prosper for a while.
Then, as they pay off their loans, the available currency supply shrinks and currency
becomes "scarce." Borrowers must always take more currency out of circulation
when they repay their loans, than they put in circulation when they receive their loans.
Interest and charges make the repayment total larger than the loan. This means that only
more people borrowing still more can keep the medium of exchange available to the nation.
This example may aid understanding. When a citizen goes to a banker to borrow $100,000
to purchase a home or a farm, and the loan is granted, the banker gives the borrower a
check for $100,000 or credits the borrower's account with $100,000. The borrower, in turn,
writes the necessary checks to the builder, seller, subcontractors, etc. (who, in turn,
write more checks), thereby putting $100,000 of "checkbook currency" into
circulation. However, on a 30-year mortgage with 10% interest, the banker wants $828 per
month, or a total of $316,080. The buyer must take that $316,080 out of circulation,
reducing the overall amount in circulation by $216,080.
The banker has not really produced anything of value, except the slip of paper called a
check or deposit slip. Yet the banker ends up having $216,080 more than he had before,
minus a few hundred dollars of clerical and office costs. But the people, as a whole, have
$216,080 less.
WHY SMALL LOANS HAVE THE SAME EFFECT
For those who haven't quite grasped the impact, let us consider an auto loan for only
three years. Step one: citizen borrows $6,000 and pays it into circulation (to the dealer,
factory, etc.). Citizen agrees to repay the banker $7,200. Step two: Citizen pays $200 per
month. In 36 months citizen has taken $7,200 out of circulation and paid it to the bank.
Net result? $1,200 less currency in circulation.
Since currency requirements increase with expanding population, industry, and commerce,
and paying off any loan decreases the available currency supply, it is clear that we would
quickly run out of currency, unless more and more people borrow more and more currency to
keep currency in circulation!
Multiply the above examples by hundreds of millions of times since 1913, and you can
see why America has fallen from a prosperous debt-free nation to the most debt-ridden
country in the world. Practically every home, farm, and business is heavily mortgaged to
the bankers. Practically all our cars, furniture, and clothes are purchased with borrowed
currency. The interest to the bankers on personal, state, and federal debt totals more
than 25% of the combined earnings of the working population!
THE COST TO THE BANKERS? PRACTICALLY NOTHING
In the tens of millions of transactions made each year like those shown here,
relatively few bank notes change hands, nor is it necessary that they do. 95% of all
"cash" transactions in the U.S. are by check. Checks are thus effectively also
currency. The banker creates the so-called "loan" by writing a check or deposit
slip, not against actual money, but against your promise to pay back the loan. The only
cost to the bank is the paper, ink, and a few dollars in salaries and office costs for
each transaction. It is "check-kiting" on an enormous scale! The profits are
enormous as shown below.
THE COST TO YOU? PRACTICALLY EVERYTHING
In 1910 the U.S. federal debt was $1,147,000,000 - $12 per citizen. State and local
debts were practically non-existent, and government was small and not oppressive.
By 1920, after only six years of the Federal Reserve handling our currency, the federal
debt had jumped to $24 billion - $228 per citizen. The Federal Government began to grow
like an invisible cancer in its early stages.
By 1968 the federal debt had jumped to $347 billion - $1,717 per citizen. Ten years
later, by 1978 it had doubled again to $763 billion - $3,500 per citizen. That is a debt
of $17,500 for every family of five in America. Federal debt has been growing faster and
faster since. And the Federal Government has become a debilitating cancer rapidly sapping
and weakening its victim.
Today in 1992 the federal debt is over $4 trillion. (And they "cook the
books" on the low side to come up with that figure - see Chapter Nine.) The $4
trillion national debt amounts to $16,000 per citizen, or $80,000 per family of five. And
if that debt were calculated in terms of working or tax-paying families, it would be
considerably higher. The Federal Government has become a bloated, out-of-control parasite,
a terminal cancer. The economy seems so weak that even after many months of blowing up the
currency supply, signs of recovery have to be searched for. The entire system may be on
the brink of complete collapse.
The above figures do not include state, municipal, school district, business, or
personal debts, which total an additional $3 trillion. Total debt in America is thus over
$7 trillion - $28,000 per citizen - $120,000 per family of five. This is more than twice
the assessed value of all the land and buildings in America. Effectively all of America
has been signed over to the bankers. They can take America and we would still owe them
another America! Of course, it is to their advantage not to take actual title to the
property, so we will not realize that we really own nothing. Instead they leave us with
"ownership" so we will willingly continue to work and pay ever higher tributes
to the bankers.
What we really have is national bankruptcy. Let me repeat the words of Senator John
Danforth:
"I have never seen more senators express discontent with their jobs. ... I think
the major cause is that, deep down in our hearts, we have been accomplices to doing
something terrible and unforgivable to this wonderful country. Deep down in our hearts, we
know that we have bankrupted America and that we have given our children a legacy of
bankruptcy. ... We have defrauded our country to get ourselves elected."
THE INEXORABLE TRANSFER OF WEALTH TO THE BANKERS
To grasp the fact that periodic withdrawal of currency through interest payments to the
bankers will inexorably transfer all wealth in the nation to the receivers of interest,
imagine yourself in a poker or dice game. Everyone has to buy chips (the medium of
exchange) from a "banker" who does not risk chips in the game, but watches the
table and every hour reaches in and takes 10% to 15% of all the chips on the table. As the
game progresses, the number of chips in the possession of each player will go up and down
with his or her "luck." However, the total number of chips available to play the
game (carry on business and trade) will decrease steadily, while the "banker's"
mountain of chips just grows and grows.
The game will get low on chips, and some players will run out. If they want to continue
to play, they must buy or borrow more chips from the "banker." The
"banker" will sell (lend) the player more chips only if the player signs a
"mortgage" agreeing to give the "banker" some real property (car,
home, farm, business, etc.). If the payments should go into default, the banker takes the
property. The payments must be made on time, whether the player wins (makes a profit) or
not.
It is easy to see that no matter how skillfully the players play, eventually the
"banker" will end up with all of his chips back. Except for the very best or
"luckiest" players, the rest, if they stay in the game long enough, will end up
owing to the "banker" their cars, their homes, their farms, their businesses,
and perhaps even their watches, rings, and the shirts off their backs!
Sir Josiah Stamp, President of the Bank of England in the 1920s, and the second richest
man in Britain at the time, said:
"Banking was conceived in iniquity and was born in sin. The bankers own the earth.
Take it away from them but leave them in power to create deposits, and with the flick of
the pen they create enough deposits to buy it back again. However, take it away from them,
and all the great fortunes like mine will disappear, and they ought to disappear, for this
would be a happier and better world to live in. But, if you wish to remain the slaves of
bankers and pay the cost of your own slavery, let them continue to create deposits."
Our real-life situation is much worse than any poker game. In a poker game no one is
forced to go into debt, and anyone can quit at any time and keep whatever he or she still
has. But in real life, even if we borrow little ourselves from the bankers, the local,
state, and federal governments borrow billions in our name, squander it, then confiscate
our earnings from us and pay it to the bankers with interest. We are forced to play their
game, and it seems we can only leave the game by dying. We pay as long as we live, and our
children pay after we die. If we cannot pay, the same government sends the police to take
our property and give it to the bankers. The bankers risk nothing (at least, the Federal
Reserve bankers) in the game; they just collect their percentage and "win it
all." In Las Vegas all the games are "rigged" to pay the house (owner) a
percentage. They rake in millions. The Federal Reserve bankers' "game" is
similarly rigged, and it pays off in billions.
In recent years bankers have added more "cards" to their game.
"Credit" cards are promoted as a convenience and a great boon to trade.
Actually, they are ingenious devices by which bankers collect %2 to 5% of every retail
sale from the seller and 18% or more interest from buyers. A real stacked deck!
POLITICIANS AND BANKERS IN THE SAME LEAGUE
Democrat, Republican, and Independent voters have wondered why politicians always spend
more tax currency than they collect. The reason should now be clear. When you study our
"debt-currency" system, you soon realize that the politicians are not the agents
of the people. They are the agents of the Federal Reserve bankers, for whom they plan ways
to place the people further in debt. Let me again quote the words of Senator John
Danforth:
"I have never seen more senators express discontent with their jobs. ... I think
the major cause is that, deep down in our hearts, we have been accomplices to doing
something terrible and unforgivable to this wonderful country. Deep down in our hearts, we
know that we have bankrupted America and that we have given our children a legacy of
bankruptcy. ... We have defrauded our country to get ourselves elected."
Article I, Section 8 of the U.S. Constitution states, "The Congress shall have
power... to coin money, regulate the value thereof... " But what have our politicians
done? In 1913 they traitorously gave the U.S. Treasury to the Federal Reserve bankers -
lock, stock, and barrel! Someone recently asked, "What's the difference between
Kindergarten and Congress?" Answer: "One has adult supervision!" Actually,
we shouldn't criticize Congress, after all, we have the best Congress money can buy.
Chapter Ten examines Congress in more detail.
FEDERAL RESERVE SYSTEM AUDIT
The Federal Reserve has never been audited by the government. In 1975 a bill H. R.
4316, to require Federal Reserve audits, was introduced in Congress. Due to pressure from
the currency-controllers, it was rejected. No audit of the Federal Reserve has ever been
done.
MOUNTING DEBTS AND WARS
We, as a people are now ruled by a "banker-owned system" that has usurped the
mantle of government, disguised itself as our legitimate government, and set about to
pauperize and control the people. It is now a centralized, all-powerful apparatus whose
main purposes are spending the people's currency, promoting war, and propagandizing to
perpetuate itself in power. Our two large political parties (the "Demopublicans"
also called "Republicrats") have become its servants, the various departments of
government its spending agencies, and the Internal Revenue Service its collection agency.
Unknown to the people, our "banker-owned system" operates in close
cooperation with similar apparatuses in other nations, also disguised as
"governments." Some, we are told, are friends. Others, we are told, are enemies.
"Enemies" are built up through international manipulations and used to frighten
the American people into going billions of dollars more into debt to the bankers for
"military preparedness," "foreign aid to stop communism,"
"minority rights," etc. Citizens, deliberately confused by brainwashing
propaganda, watch helplessly while our politicians give our food, goods, and gold to
banker-controlled alien governments under the guise of "better relations,"
"easing tensions," or "humanitarian aide." Our banker-controlled
government takes our finest and bravest sons and sends them into foreign wars, where tens
of thousands are murdered and hundreds of thousands are crippled. Other thousands are
morally corrupted and addicted to drugs. When the "war" is over we have gained
nothing, but we are scores of billions more in debt to the bankers - which was the real
reason for the war in the first place!
MORE THAN JUST ECONOMIC RAPE
The profits from these massive debts have been used to erect a complete and almost
hidden economic and political colossus over our nation. Our "banker-owned
system" keeps telling us they are trying to do us good, when in truth they work to
harm and injure the people. These would-be despots know it is easier to control and rob an
ignorant, poorly-educated, and confused people than it is an informed population, so they
deliberately degrade our educational systems. For the same reason they secretly favor drug
use, alcohol, racial conflict, and crime in general. Their "war on drugs," as an
example, only produces more drug use and a host of related crimes. Everything which
debilitates the minds and bodies of the people is secretly encouraged, as it makes the
people less able to oppose them, or even to understand what is being done to them. The
system wants mediocre, unthinking, helpless "sheople."
Family, morals, and all that is honorable is being swept away, while our
"banker-owned system" builds their new subservient man, the foundation of their
"new world order." Our new rulers are trying to change our whole political,
social, and racial order, but they will not change the debt-currency economic system by
which they rob and rule. Our people have become tenants and "debt-slaves" to the
bankers and their agents in the land our fathers conquered. It is conquest through the
most gigantic fraud and swindle in the history of humankind. And we remind you again: The
key to their wealth and power over us is their m
onopolistic ability to
"create" currency out of nothing and to lend it to us at interest. If Congress
had not allowed them to do that, they never would have gained secret control over our
nation.
CONTROLLED NEWS AND INFORMATION
This currency-lender conspiracy ("consPIRACY") is as old as Babylon. Even in
America it dates far back before 1913. Actually, 1913 was the year in which the way opened
for complete economic conquest of our people. The conspiracy is old enough to America so
that the system's agents have been for many years in positions such as newspaper
publishers, editors, columnists, church ministers, university presidents, professors,
textbook authors, attorneys, accountants, labor union leaders, movie makers, radio and TV
commentators, politicians from school board members to U.S. Presidents, and many others.
These agents control the information available to our people. They manipulate public
opinion, elect who they will locally and nationally, and never expose the crooked currency
system. They promote school bonds, municipal bonds, expensive and detrimental farm
programs, "urban renewal," "foreign aid," and many other schemes which
will put the people more in debt to the bankers. Thoughtful citizens wonder why billions
are spent on one program and billions on another which may duplicate or even nullify it,
such as paying some farmers not to raise crops, while at the same time building dams or
canals to irrigate more farm land. Crazy or stupid? Neither. The goal is more debt.
Thousands of government-sponsored ways to waste "money" are perpetrated
continually. Most make no sense, but they are never exposed for what they really are:
builders of billions for the bankers and debts for the people.
So-called "economic experts" write syndicated columns in hundreds of
newspapers, craftily designed to prevent the people from learning the simple truth about
our debt-currency system. Commentators on radio and TV, educators, and politicians blame
the people as wasteful, lazy, or spendthrift, and blame the workers and consumers for the
increase in debts and the inflation of prices, when they really know that the basic cause
is the debt-currency system itself. Our people are drowned in charges and counter-charges
designed to confuse them and keep them from understanding the evil currency system that so
silently robs the workers, farmers, and business people of the fruit of their labor. And,
increasingly, the system is being used to rob us of our rights and freedoms, supposedly
guaranteed by the U.S. Constitution.
In his book
Inventing Reality, Michael Parenti wrote:
"Ten business and financial corporations control the three major television and radio
networks (NBC, CBS, ABC), 34 subsidiary television stations, 201 cable TV systems, 62
radio stations, 20 record companies, 59 magazines, 58 newspapers, including the
New
York Times, the
Washington Post,
The Wall Street Journal, and the
Los
Angeles Times, 41 book publishers and various motion picture companies like Columbia
Pictures and Twentieth Century Fox. Three quarters of the major stockholders of ABC, CBS
and NBC are banks, such as Chase Manhattan, Morgan Guaranty Trust, Citibank, and Bank of
America.
The overall pattern is one of increasing concentration of ownership and earnings.
According to a 1982
Los Angeles Times survey, independent daily newspapers are
being gobbled up by the chains at the rate of fifty or sixty a year. Ten newspaper chains
earn over half of all newspaper revenue in this country. Five media conglomerates share 95
percent of the record and tapes market with Warner and CBS alone controlling 65 percent of
the market. Eight Hollywood studios account for 89 percent of U.S. feature film rentals.
Three television networks earn over two-thirds of total U.S. television revenues. Seven
paperback publishers dominate the mass market for books...
While having an abundance of numbers and giving an appearance of diversity, the mass
media actually are highly centralized outlets that proffer a remarkably homogenized fare.
News services for dailies throughout the entire nation are provided by the Associated
Press and United Press International (which may soon merge with AP or go under), The New
York Times-Washington Post wire services, and several foreign wire services like Reuters.
The ideological viewpoint of these news conduits are pretty much the same, marked by
prefabricated standardization of news which is constricting and frightening."
In his book
The Media Monopoly, Ben H. Bagdikian writes:
"The power to control information is a major lever in the control of society. Giving
citizens a choice in ideas and information is as important as giving them a choice in
politics. If a nation has narrowly controlled information it will soon have narrowly
controlled politics."
When a few informed and concerned people or organizations who know the truth begin to
expose the bankers and their agents, or try to stop any of their mad schemes, the
messengers are ridiculed and smeared as "right-wing extremists,"
"super-patriots," "bigots," "racists," "fascists,"
or "anti-semites." Any name is used to discredit them, and to stop other people
from listening. Books and articles such as you are now reading are kept out of schools,
freedomries, and book stores.
Some, who are especially vocal in their exposure of the treason committed against our
people, are harassed by government agencies such as the IRS, FDA, EPA, OSHA, and others,
causing them financial loss or bankruptcy. Sometimes their businesses and homes are
violently raided at gunpoint, and their money, currency, equipment, and records
confiscated, so it is very difficult, if at all possible to continue their business. In
Chapter One the National Commodity and Barter Association was mentioned as an example of
such raids. But the most striking case has been that of Ezra Pound, which is covered
below.
Using these methods, the Federal Reserve bankers and their agents have been completely
successful in preventing most Americans from learning the things you are reading in this
report. However, in spite of their control of information, they realize that more and more
citizens are learning the truth. Therefore, to prevent retaliation and armed resistance to
their plunder of America, they plan to register all firearms and eventually disarm all
citizens. They want to eliminate all guns not in the hands of their government police or
army. Our wise Founding Fathers wrote the Second Amendment to the Constitution so that the
people could protect themselves against the government.
Love of life, interest in your freedom, compassion for humanity, concern for your
children, and the safety of all you have worked for should make you deeply interested in
this, America's greatest problem. Our generation has not suffered under the bankers' yoke
as the coming generations will. Usury and taxes will continue to take a larger and larger
part of the earnings of the people and put them deeper into the pockets of the bankers and
their agents. Increasing "government" regulations will prevent citizen protest
and opposition to their control. Is it possible that your grandchildren will own neither
car nor home, but will live in "government-owned" apartments and ride to work in
"government-owned" buses, and be allowed to keep just enough of their earnings
to buy a minimum of food and clothing, while their rulers wallow in luxury? In Asia and
Eastern Europe this used to be called communism. In America it is called democracy or
capitalism.
Horace Greeley stated, "While boasting of our noble deeds, we are careful to
conceal the ugly fact that by an iniquitous currency system we have nationalized a system
of oppression which, though more refined, is not less cruel than the old system of chattel
slavery."
THE CASE OF EZRA POUND
Ezra Pound was a poet, one of America's greatest - if not the greatest. He played a
major role in the development of writers and poets, such as E.E. Cummings, T.S. Elliot,
Robert Frost, Ernest Hemingway, James Joyce, and William Carlos Williams. He also studied
politics, economics, banking, and monetary theory. He disapproved of war. During World War
II, he hid a number of Jews from the Nazi exterminators; if discovered the penalty would
have been death. He broadcast a series of talks on Italian radio aimed at Americans. He
had wanted America to stay out of the war, and he said some uncomplimentary things about
President Franklin D. Roosevelt. He also stated some of his political and monetary ideas.
He was accused of being a traitor. At the end of the war he was imprisoned in an American
concentration camp near Pisa, Italy for six months without trial. Then he was transferred
to America where he was declared insane and imprisoned in a mental hospital in Washington
D.C. for thirteen years. After which the treason charges, for which he had never stood
trial, were dropped, and he was released. He returned to Italy, where he lived until his
death in 1972.
The reason he was not tried seems to be that his prosecutors didn't have a case that
would hold up in court and/or they were afraid that he would repeat in court what he had
said over the radio in Italy. Wendell Muncie, M.D., one of the psychiatrists involved in
his "sanity hearing," said that Pound's insanity consisted of three factors: his
passion for the U.S. Constitution, his espousal of the Confucian ethic, and his desire for
world peace. No formal diagnosis of Pound's supposed "insanity" has been found.
His captors in Washington openly admitted that Pound was a political prisoner. A
Congressional investigation started in 1957 and completed in 1958 exposed the inadequacy
of the case against Pound and led to his release.
Here are some extracts from Pound's radio talks:
- "I think an alliance with Stalin's Russia is rotten." (January 29, 1942)
- "Liberty is not a right but a duty." (March 8, 1942)
- "Sovereignty inheres in the right to issue money. And the American sovereignty
belongs by right to the people, and their representatives in Congress have the right to
issue money and to determine the value thereof. And 120 million, 120 million suckers have
lamentably failed to insist on the observation of this quite decided law. ... Now the
point at which embezzlement of the nation's funds on the part of her officers becomes
treason can probably be decided only by jurists, and not by hand-picked judges who support
illegality." (April 9, 1942)
- Quotes read by Pound: 1. "'I believe that banking institutions are more dangerous
to our liberties than standing armies.' -- Thomas Jefferson.
2. 'I have two great enemies, the southern army in front of me and the financial
institutions in the rear. Of the two, the one in the rear is the greatest enemy.' --
Abraham Lincoln.
3. 'The money power preys upon the nation in times of peace and conspires against it in
times of adversity. It is more despotic than monarchy, more insolent than autocracy, more
selfish than bureaucracy; it denounces as public enemies all who question its methods, or
throw light upon its crimes.' -- William Jennings Bryan." (July 26, 1942)
- Back to Pound's own words: "Wars in old times were made to get slaves. The modern
implement of imposing slavery is debt." (March 25, 1943)
- "The phase of the usury system which we are trying to analyze is more or less
Patterson's perception that the Bank of England could have benefit of all the interest on
all the money that it creates out of nothing. ... Now the American citizen can, of course,
appeal to his constitution, which states that Congress shall have power to coin money or
regulate the value thereof and of foreign coin. Such appeal is perhaps quixotic."
(March 30, 1943)
- "That text is known to them that have the patience to read it, possibly one
one-hundredth of one percent of the denizens. They forget it, all save a few Western
states. I think somebody in Dakota once read it. The Constitution." June 30, 1943)
THE FEDERAL RESERVE SYSTEM IS UNCONSTITUTIONAL AND ILLEGAL
Although there has never been a court case that challenged the legality of the Federal
Reserve System, there was a challenge to the National Recovery Act or NRA, which was ruled
unconstitutional. The U.S. Supreme Court -
Schechter Poultry v. U.S., 29 U.S. 495,
55 U.S. 837.842 (1935) - ruled that, "Congress may not a
bdicate or transfer to
others its legitimate functions." Article I, Section 8 of the U.S. Constitution
states, "The Congress shall have power... to coin money, regulate the value
thereof... " By passing the Federal Reserve Act, Congress abdicated and transferred
to the Federal Reserve bankers its constitutionally legitimate function of issuing and
controlling money. If the Supreme Court ruling on the NRA is applied to the Federal
Reserve System, the unconstitutionality and illegality of the Fed becomes obvious.
TELL THE PEOPLE
America will not shake off her illegal banker-controlled dictatorship as long as the
people are ignorant of the hidden controllers. International bankers, who control most of
the governments of the nations and most sources of information, seem to have us completely
in their grasp. They are afraid of only one thing: an awakened citizenry armed with the
truth. An ignorant citizen is the banker-government's best "client." An informed
citizen is the banker-government's worst nightmare.
Robert H. Hemphill, Credit Manager of the Federal Reserve Bank of Atlanta Georgia,
said:
"This is a staggering thought. We are completely dependent on the commercial banks.
Someone has to borrow every dollar we have in circulation, cash, or credit. If the banks
create ample synthetic money, we are prosperous; if not, we starve. We are absolutely
without a permanent money system. When one gets a complete grasp of the picture, the
tragic absurdity of our hopeless position is almost incredible, but there it is. It is the
most important subject intelligent persons can investigate and reflect upon. It is so
important that our present civilization may collapse unless it becomes widely understood
and the defect remedied very soon."
PRIVATE BANKING
In California a very private "non-bank" has been operating successfully for
fifteen years. It caters for accounts in gold or Federal Reserve Notes. It is completely
private and doesn't report to anyone. It pays interest on both gold and Federal Reserve
Note balances. Ideally, we need to establish a network of private banks throughout the
country, and eventually throughout the rest of the world. See
Chapter
Twelve.
Contents -
Preface -
Introduction -
Bibliography -
HomeChapter:
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