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July 22 - August 3, 2018
The challenge no longer was how to overcome one's adversaries, but how to keep new ones from entering the field.
Do not call it a cartel nor even a central bank. Make it look like a government agency. Establish regional branches to create the appearance of decentralization, not dominated by Wall Street banks. Begin with a conservative structure including many sound banking principles knowing that the provisions can be quietly altered or removed in subsequent years. Use the anger caused by recent panics and bank failures to create popular demand for monetary reform. Offer the Jekyll Island plan as though it were in response to that need. Employ university professors to give the plan the appearance of
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The plan to structure the Creature conservatively at the start and then to remove the safeguards later was the brainchild of Paul Warburg.
To carry the message to the voters, it was decided that representatives from the world of academia should be enlisted to provide the necessary aura of respectability and intellectual objectivity.
"The reader knows that the University of Chicago is an institution endowed by John D. Rockefeller with nearly fifty million dollars. It may truly be said to be the Rockefeller University."63
He was particularly close with Andrew Carnegie and had become a trustee of the Carnegie Foundation.
During the panic of 1907, Wilson declared that: "all this trouble could be averted if we appointed a committee of six or seven public-spirited men like J.P. Morgan to handle the affairs of our country."67
The Aldrich Plan is the Wall Street Plan. It is a broad challenge to the government by the champion of the money trust. 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.
A structure of 12 regional institutions was conceived as a further ploy to create the illusion of decentralization, but the mechanism was designed from the beginning to operate as a central bank closely modeled after the Bank of England.
Wilson had been put forth as the Democratic challenger, but his dry personality and aloof mannerisms had failed to arouse sufficient voter interest to make him a serious contender.
They did not expect Roosevelt to win, but, as a former Republican President, they knew he would split the Party and, by pulling away votes from Taft, put Wilson into the White House.
What irony it was. The Party of the working man, the Party of Thomas Jefferson—formed only a few generations earlier for the specific purpose of opposing a central bank—was now cheering a new leader who was a political captive of Wall Street bankers and who had agreed to the hidden agenda of establishing the Federal Reserve System. As George Harvey later boasted, the financiers "felt no animosity toward Mr. Wilson for such of his utterances as they regarded as radical and menacing to their interests. He had simply played the political game."
Wilson won with only forty-two per cent of the popular vote, which means, of course, that fifty-eight per cent had been cast against
As Colonel House confided to author George Viereck years later, "Wilson was elected by Teddy Roosevelt."80
Wilson made no pretense at knowledge of banking theory.
"I was for an instant speechless!" wrote Glass who then explained how he reminded the President that the only backing for the new currency would be a small amount of gold, a large amount of government and commercial debt, and the private assets of the individual banks themselves. "It would be a pretense on its face," he said. "Was there ever a government note based primarily on the property of banking institutions? Was there ever a government issue not one dollar of which could be put out except by demand of a bank? The suggested government obligation is so remote it could never be
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Years later, Paul Warburg would explain further: While technically and legally the Federal Reserve note is an obligation of the United States Government, in reality it is an obligation, the sole actual responsibility for which rests on the reserve banks.... The government could only be called upon to take them up after the reserve banks had failed.103 Warburg's explanation should be carefully
The man who masterminded the Federal Reserve System is telling us that Federal Reserve notes constitute privately issued money with the taxpayers standing by to cover the potential losses of those banks which issue it. One of the more controversial assertions of this book is that the objectives set forth at the Jekyll Island meeting in...
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Warburg himself has con...
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Bryan was no match for the Jekyll Island strategists and he accepted the "compromises" at face value. Had there been any lingering doubts in his mind, they were swept away by gratitude for his appointment as Wilson's Secretary of State.
The Federal Reserve Act was released from the joint House and Senate conference committee on December 22, 1913, just as Congress was preoccupied with departure for the Christmas recess and in no mood for debate. It quickly passed by a vote of 282 to 60 in the House and 43 to 23 in the Senate. The President signed it into law the next day.
the Act has been amended 195 times, expanding the power and scope of the System to the point where, today, it would be almost unrecognizable to the Congressmen and Senators who voted for it.
Seventy per cent of the cost of World War I was paid by inflation rather than taxes, a process that was orchestrated by the Federal Reserve System. This was considered by the Fed's supporters as its first real test, and it passed with flying colors.
"Under the Federal Reserve Act, panics are scientifically created; the present panic is the first scientifically created one, worked out as we figure a mathematical problem."112
Although the Fed is authorized to buy and sell almost any kind of security that exists in the world, it is obligated to show preference for bonds and notes of the federal government. That is the way the monetary scientists discharge the commitment to create money for their partners, the political scientists. Without that service, the partnership would dissolve, and Congress would abolish the Fed.
the vast inflation that preceded the Crash of 1929 was not caused by deficit spending. In each year from 1920 through 1930 there was a surplus of government revenue over expenses. Surprising as it ma be, on the eve of the depression, America was getting out of debt.
Up until World War I, annual federal expenses had been running about $750 million. By the end of the war, it was running $18 and-a-half billion, an increase of 2,466%. Approximately 70% of the cost of war had been financed by debt.
The bonds had become the basis for money in circulation and, if they had been redeemed, the money supply would have decreased. A decrease in the money supply is viewed by politicians and central bankers as a threat to economic stability. Thus, the government found itself unable to get out of debt even when it had the money to do so, a dilemma that continues to this day.
Bonds purchased by the public do not increase the money supply whereas those purchased by banks do.
In any event, by the end of the war, Congress had awakened to the fact that it could use the Federal Reserve System to obtain revenue without taxes.
The powers of that group were enhanced ten years later by legislation which made it mandatory for the regional branches to follow the Open-Market Committee's directives, but that was a mere formality, for the die had been cast much earlier. From 1923 forward, the Fed's open-market operations have been carried out by the New York Federal Reserve Bank. The money trust has always been in control.
Herbert Hoover described Mellon's views as follows: Mr. Mellon had only one formula: "liquidate labor, liquidate stocks, liquidate the farmers, liquidate real estate." He insisted that, when the people get an inflation brainstorm, the only way to get it out of their blood is to let it collapse. He held that even a panic was not altogether a bad thing. He said: "It will purge the rottenness out of the system. High costs of living and high living will come down. People will work harder, live a moral life. Values will be adjusted, and enterprising people will pick up the wrecks from less
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In 1980, statutory limits on reserve ratios were eliminated altogether. The Federal Reserve Board now has the option to lower the ratio to zero, which means the power to create unlimited quantities of money. It is the ultimate dream of central bankers.
if a reduction in the size and scope of the bureaucracy were accomplished at the same time, personal and corporate income taxes could be eliminated, and the government would have an annual surplus.
Nearly twice as many people now work for government than for manufacturing companies in the private sector.
There are more bank regulators than bankers, more farm-bureau workers than farmers,
More citizens receive government checks than those who...
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By 2010, the average federal worker was earning 60% more than the average worker in the private sector.5
The political function of the food stamp program is not to help the hungry but to buy votes.
The money that comes in for future obligations is immediately spent and replaced by a government IOU. So, as those future payments come due, all of the money must come from revenue being collected at that time.
Entitlements currently represent 52% of all federal outlays, and they are growing at the rate of 12% each year. When this is added to the 14% that is now being spent for interest payments on the national debt, we come to the startling conclusion that two-thirds of all federal expenses are now entirely automatic, and that percentage is growing each month.
a major portion of the interest on the national debt does, indeed, accrue to the benefit of a large sector of the American people.
foreign-held federal debt is a ticking time bomb. If it should ever have to be picked up by the Fed, the inflationary impact on our country would be staggering.
Because of concern over the habitat of the spotted owl and the desert kangaroo rat, millions of acres of timber and agricultural land have been taken out of production.
Since monetary manipulation is seldom understood by its victims, it does not incur their wrath. In fact, the manipulators enjoy high social status and financial reward. For these reasons, monetary control is the weapon of choice in The New World Order.
study released in 1966 called the Report from Iron Mountain.
The possibility of war provides the sense of external necessity without which no government can long remain in power. The historical record reveals one instance after another where the failure of a regime to maintain the credibility of a war threat led to its dissolution, by the forces of private interest, of reactions to social injustice, or of other disintegrative elements.
there can be no substitute for war unless it possesses three properties. It must (1) be economically wasteful, (2) represent a credible threat of great magnitude, and (3) provide a logical excuse for compulsory service to the government.
radical environmental groups advocating socialist doctrine and anti-business programs are lavishly funded by CFR-dominated foundations, banks, and corporations, the very groups that would appear to have the most to lose. The Report from Iron Mountain answers those questions.
As the cold war recedes, the environment is becoming the No. 1 international security concern."24
