It
is impossible to understand the world today without knowing what the
ESF is and what it has been doing. Officially in charge of defending
the dollar, the ESF is the government agency which controls the New
York Fed, runs the CIA's black budget, and is the architect of the
world's monetary system (IMF, World Bank, etc). ESF
financing (through the OSS and then the CIA) built up the worldwide
propaganda network which has so badly distorted history today
(including erasing awareness of its existence from popular
consciousness). It has been directly involved in virtually every major
US fraud/scandal since its creation in 1934.
International bankers often use warfare to set up ''Central Banking systems that are privately controlled" across the globe....Since military intervention in Afghanistan and Iraq, centralized, 'privately controlled' banking systems have been introduced. http://www.youtube.com/watch?v=HrL6IhVKQGw&feature=related
Global Fraud/Global Hope - Address by Former Canadian Minister of Defence Paul Hellyer
International Finance vs The Peoples of the World Fort McDowell Resort, Scottsdale, Arizona Saturday, February 26, 2011 by Hon. Paul Hellyer, P.C. Former Canadian Minister of National Defence
The world financial system is a total fraud. It
is one gargantuan Ponzi scheme, no better than the one Bernie Madoff
use to swindle his friends and neighbors, and thousands of times worse
if you add up the total number of victims it has ripped off over
countless generations. The principal difference between the two
schemes is that Madoff was acting outside the law while the
international banking cartel has persuaded generation after generation
of monarchs, presidents and prime ministers to provide legislative
protection for their larceny. The Bankers' Ponzi scheme is alarmingly
simple. They lend the same money to several people or institutions at
the same time and collect interest on it from each. What the banks
really lend, however, is their credit, and what they take back in
compensation for that privilege is a debt that must be repaid with
interest. The number of times they lend the same money is
called leverage. The practice is as old as the hills but for our
purposes we can start with the goldsmiths of Lombard Street in London,
England, who accepted deposits for which they issued certificates
redeemable on demand. They paid their depositors a nominal interest rate
on the understanding that they could lend the money to their customers
at higher interest rates. They soon found that they could lend more than
they had in their vaults because only a few depositors came in to
redeem their gold or silver at any one time. It was a scam. It was
illegal. Nevertheless they got away with it for a long while and the
scam was legitimized when the Bank of England was
chartered to help King William finance his war. Rich people subscribed
£1,200,000 in gold and silver, as capital, to found the bank, which then
was lent to the government at 8 percent. To show his appreciation the
King allowed the bank to print £1,200,000 in banknotes and lend them at
high interest rates. In effect, the bank was allowed to lend the same
money twice– once to the government and once to the people. If any skeptics think I am overstating the case don’t take my word for it.. Go to www.victoryfortheworld.net and read some of the books that can be used as references. A hundred pages of The Web of Debt,
for example, setting out the history of money, will probably be enough
to make you sick at your stomach. I stopped reading it at night because
if often made me so angry I couldn’t sleep. Over
the years, due to the avarice of the banks and the complicity of the
politicians, that ratio has increased dramatically. In the early days of
the 20th century, federal chartered U.S. banks were required to keep
gold reserves of 25 percent. That means they were allowed to lend the
same money four times. I remember when Canadian banks were required to
maintain a cash reserve of 8 percent. That means they were allowed to
lend the same money 12½ times. Today,
thanks to Milton Friedman’s irrational flip-flop from being a proponent
of 100% cash reserves to the opposite extreme of zero reserves, and the
adoption of his ideas by the major central banks of the world in 1974,
multiples have increased dramatically – in some cases to as much as 20
to 1 or more. Banks only keep enough cash to meet day-to-day demands for
those few customers who go in and request it, and consequently the
fraud is virtually total. The
system works this way. Suppose that you want to borrow $35,000 to buy a
new car. You visit your friendly banker and ask for a loan. He or she
will ask you for collateral – some stocks, bonds, a second mortgage on
your house or cottage or, if you are unable to supply any of these, the
co-signature of a well-to-do friend or relative. When the collateral
requirement is satisfied you will be asked to sign a note for the
principal amount with an agreed rate of interest. When the paperwork
is complete, and the note signed, your banker will make an entry on the
bank’s computer and, presto, a $35,000 credit will appear in your
account which you can use to buy your car. The important point is that
seconds earlier that money did not exist. It was created out of thin air – so to speak. The
banking equation is a species of double-entry bookkeeping where your
note becomes an asset on the bank’s books, and the new money that was
deposited to your account is a liability. The profit for the bank comes
from the difference between the low rate of interest, if any, you would
be paid on your deposit if you didn’t spend the borrowed money
immediately, and the much higher rate you would be obliged to pay on
your note – the technical term is “the spread.” At
some point, however, you have to pay off your note and any interest
owing. And not only you but everyone else who has borrowed “money” from
banks – including governments which, by the way, own the right to print
money [creating money from nothing] but that have irresponsibly handed
the right over to an elite group of private bankers. Anyone who defaults
is in big trouble. Individuals who default will have the assets they
pledged as collateral seized by the bank. A government that is in danger
of defaulting, will be forced to borrow from
the International Monetary Fund, which will then tell that government
how to run its affairs including cutting back on services and selling
off public assets to the international vulture capitalists.. In
reality, then, the banks have turned the world into one humongous pawn
shop. You hock your stocks, bonds, house, business, rich mother-in-law
or country and the bank(s) will give you a loan based on the value of
the collateral. [by creating money from nothing, a.k.a. counterfeiting,
since the banksters don’t own the assets against which they issue the
money] A world system where all the money is created as debt is
a perpetual disaster in the making. It is like a giant balloon that the
banks pump full of debt. The balloon gets larger and larger until the
debt load becomes too heavy to carry, and then it is like a balloon with
a pin stuck in it. The system crashes and thousands or sometimes
millions of innocent people lose their jobs, homes, farms and
businesses. Almost any high school student should be able to see that
any monetary system based on debt creation is totally insane. The total
world debt, mathematically, is always tending toward infinity – and
there is no possible way of paying it off. The real money (legal tender)
to do so doesn’t exist. And the real economy that depends on cash to
grow shifts into low gear whenever the supply of credit money dries up. Not surprisingly, there have been 25 recessions and depressions in
the United States since 1890. In several cases, including the Great
Depression of the 1930s and the current Great Recession, the evidence
indicates that the meltdown was anticipated by a few insiders who helped
trigger the catastrophe. In the wake of the Great Depression, the U.S. Senate Banking and Currency Committee Report that became widely known as the Pecora Report on the Practices of Stock Exchanges, indicated that there were insiders who benefitted from the crash. (This is what is needed in today's world: another Pecora to clean up but the will isn't there. vg) “Legal
chicanery and pitch darkness were the banker’s stoutest allies,” Pecora
wrote in his memoir. Similar allegations were evident in Charles
Ferguson damning documentary “Inside Job,” relating to the 2007-2008
meltdown. These reports, and other historical evidence prove beyond any
doubt that much of Wall Street is rotten to the core. It has become one gigantic millstone around the neck of both the American and world economies. The
collateral damage from the recent meltdown has been staggering. The
U.S.. Bureau of Labor estimated that 8.4 million jobs were lost in the
U.S. alone. Most countries experienced similar dramatic losses. The
reduction in asset values worldwide has been estimated at $20 trillion
U.S. dollars, yet not a single one of the
culprits is in jail. You would think that someone would have had the
decency to launch a class action for at least $10 trillion against every
individual and every organization that contributed to the catastrophe
in any way. It boggles the mind that a system so vulnerable to
manipulation would ever have come into existence in the first place. The
evolution did not happen by accident. It was not guided by the mythical
invisible hand of Adam Smith. On the contrary, for more than a
century-and-a-half, it was engineered by the barely visible hand of the
Rothschild family and its allies, and since World War II by the
Rockefeller family. The two dynasties combined forces to exercise
influence on many fronts sheltered by the cloak of secrecy established
by the Bilderberg Group. The long term
influence of the banking cartel is incalculable. Their biggest coup was
the establishment of the Federal Reserve System in the United States.
The big New York banks really didn’t like the idea of genuine
competition, so a small group held a secret meeting at the private
resort of J.P.. Morgan on Jekyll Island, off the coast of Georgia. Their
scheme, devised by Paul M. Warburg, and subsequently adopted by
Congress, is a legal private monopoly of the U.S. money supply operated for the benefit of the few under the guise of protecting and promoting the public interest. It
is a tribute to the skill of the international bankers that they were
able to draft a bill, revise it, change its name and make the few window
dressing compromises necessary to get it adopted by Congress just
before Christmas when quite a few Representatives must have been
dreaming of sugar plum fairies instead of exercising due diligence. Only
Charles Lindberg Sr. seemed to grasp the essence of what was going on.
To put it bluntly, the Congress transferred its sovereign constitutional
right to create money to the sole custody of a group of private
bankers. The magnitude of the hoistis unprecedented in the history of the world – the numbers now are in the high trillions. Soon
after the bill was passed the magnitude of the tragedy began to be
recognized. William Jennings Bryan, who acted as Democrat whip, later
said: “In my long political career, the one thing I genuinely regret is
my part in getting the banking and currency legislation (Federal Reserve
Act of 1913) enacted into law.” President Woodrow Wilson, just three
years after passage of the Act, wrote: “A great industrial nation is
controlled by its system of credit. Our system of credit is concentrated
(in the Federal Reserve System). 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.” But the bill was not
repealed; almost 100 years later the sell-out is still the law. This makes you wonder what the people’s representatives have been doing to earn their salaries. The
people in charge of the original deception were very far-seeing. They
realized that when future governments had to borrow from them they would
need a constant income stream to pay the interest on the bonds. So they
persuaded the government to introduce income taxes, first as a
temporary measure, but later permanently, so it would be able to meet
its obligations to the bondholders. In fiscal year 2005 total individual
income taxes in the U.S. totalled $927 billion. Of that amount $352
billion, or 38%, was required just to pay interest on the federal debt.
The figure would be higher now. Banksters bought up most influential newspapers in the world The
banksters, as they were often called, then decided that an independent
press might catch on to the chicanery. Oscar Callaway is reported in the
Congressional Record of February 9, 1917 as follows. “In March,
1915, the J.P. Morgan interests, the steel, shipbuilding, and powder
interests, and their subsidiary organizations, got together 12 men high
up in the newspaper world, and employed them to select the most
influential newspapers in the United States and sufficient number of
them to control generally the policy of the daily press of the United
States… They found it was only necessary to purchase the control of 25
of the greatest papers. The 25
papers were agreed upon; emissaries were sent to purchase the policy,
national and international, of these papers; … an editor was furnished
for each paper to properly supervise and edit information regarding the
questions of preparedness, militarism, financial policies, and other
things of national and international nature considered vital to the
interests of the purchasers [and to suppress] everything in opposition
to the wishes of the interests served.” It
has been suggested that the Bilderberg Group may have taken a leaf from
the Morgan precedent to protect their interests in the late 20th and
early 21st centuries. That is impossible to prove, because its members
are sworn to secrecy, and the press won’t report on its meetings. Could
it be mere coincidence that the monetary system, the downside of
globalization, 9/11 and the decades-long cover-up of the
extraterrestrial presence and technology (especially the clean energy sources that
would impact the value of oil stocks), the four subjects of most direct
beneficial interests of the banksters, are the four subjects that are
avoided like the plague by the mainline press? I myself am not
willing to go so far as to say that the men behind the international
banking system are evil men because their thoughts are private. But Sir
Josiah, later Baron Stamp, a former director of the Bank of England, has
given us a rare snapshot of the truth: “Banking
was conceived in iniquity and was born in sin. The Bankers own the
earth. Take it away from them, but leave them the power to create money,
and with a flick of the pen they will create enough money to buy it
back again. However, take that power 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 ownslavery, let them continue to create money.” The taxpayers bail out the banks, but get nothing in return In
the latest meltdown of 2007-2008, the Fed acted quickly to prevent the
Ponzi pyramid from collapsing completely. It printed trillions of
dollars to bail out the banks and a few industries that were highly
indebted to banks.. But
what did the Fed do for the taxpayers whose money was so wildly diluted
to save the banks? Nothing! They were left to fend for themselves.
Millions of people lost their jobs, their farms, their houses, their
hopes, and their dignity as a result of circumstances beyond their
control. The taxpayers bailed out the banks, but got nothing in return. The
same is true of governments who came so quickly to the rescue. As a
result of the meltdown their revenues were decreased so they were forced
to incur or increase their deficits, as well as to start cutting back
on essential services. The Fed pretended to be helping stimulate the
economy by reducing interest rates to near zero. It would be an
interesting exercise to find out what happened to all of this low-cost
money. It would be a good subject for Congressional attention. How
much did the banks use to buy up domestic and foreign assets at
fire-sale prices? Was any of it used by financialinstitutions to try to
corner world food markets and raise prices at a time when millions are
starving? No doubt some taxpayers did take advantage of the low
interest rates available but were they warned about the old bait and
switch game? Anyone who acquires assets with cheap money runs the risk
of losing their property when the Fed ultimately raises rates. It’s all
part of the boom-bust cycle inherent in our infinitely silly monetary
system. The Economics Profession What does all this have to say about the economics profession? What it really says isn’t fit to print.
Someone once said that if you put 20 economists in a room you will get
21 opinions. That is not my experience. If you get 20 economists
together they are likely to give you one stock answer, or at most two.
And if there is one dissenter he or she is likely to be drowned out by
the 19, squawking like a flock of parrots the words memorized from what
their professors taught them. I have witnessed this herd-like
mentality first hand. When I was first elected to the House of Commons
in 1949 there were only a handful of Keynesians in Ottawa. Twenty years
later nearly everyone was a Keynesian including, I am told, Richard
Nixon. At that time there were only a few monetarists around. But
they spread like mushrooms and soon dominated the economic landscape. It
reached the stage when Keynes was anathema, and it was almost
impossible to get a tenured position in a school of economics unless you
were part of Milton Friedman’s monetarist revolution. Apparently
little if any thought was given to the possibility that neither Keynes
nor Friedman had got it right. The former was a bit closer to reality
than the latter, but both theories foundered on the rocks of one
inescapable truth. Both assumed that the economic system is
self-correcting, yet more than two centuries of experience has
demonstrated clearly that it is not! Someone has to be at the tiller
charged with steering clear of the shoals and rocks of economic disaster
and that person has to be someone who is responsible to the people and
not the self-serving boom-busters. Better People The third essential change is for us as individuals. A just and peaceful world is not possible when it is riddled with graft, fraud and corruption of all kinds. Greed is king and mammon rules the world. Institutions
have to change too. For centuries major religions have been selling
their alleged superiority or exclusiveness at the point of a sword,
leading to the deaths of thousands of innocents. The three Abrahamic
religions, for example, all claim the inside route to paradise.
Mathematically that is impossible. It is far more probable,
mathematically, that they are all wrong and that the truth is larger and
more inclusive. Ancient and modern history both suggest that there
is no hope of a just and peaceful world unless all religions, and those
with no religion, forget their differences and start working together to
build the Kingdom of God on Earth. I define this as a world where every
child can expect food to eat, clean water to drink, adequate clothing
to wear, a roof overhead, access to medical support and enough education
to be able to determine how best he or she can serve humankind
positively, with dignity and self-fulfillment. What
a wonderful world that would be! But it would require a 180-degree
change in policies and priorities and a serious effort to apply the
Golden Rule that all religions claim as a common thread. The
application of the Golden Rule would mean an end to empire building, and
the pursuit of military power and advantage. The U.S., for example,
would have to stop being its own worst enemy. The declaration of the war
on terror was the biggest strategic blunder I have seen. On the 11th
day of September 2001, following the attacks on the World Trade Center,
the United States enjoyed the sympathy of the world, including Arab
states and populations. The threat from al-Qaeda was limited and quite
within the potential of police and intelligence operations to cope with. The situation changed dramatically with the launch of a war on Iraq. The goodwill began
to evaporate overnight. Soon, instead of a few dozens insurgents the
numbers of young Muslims willing to die for their cause multiplied to
thousands and a great chasm of hate and mistrust enveloped much of the
world. The
U.S. has consistently refused to be even-handed in the
Israeli-Palestinian dispute, and the Israelis deceive themselves, and
the world, when they claim to be the victims. For a long while peace has
been within their grasp if they could have agreed to a just settlement,
and establishment of a vibrant Palestinian state. But a handful of
fundamentalists have always succeeded in disrupting the peace process
because they are not willing to accept the great Rabbi Hillel’s
admonition. “So always treat others the way
you would like them to treat you; that is the message of the Law and
the Prophets.” Meanwhile the peace and stability of the world remains in
jeopardy. The world community
must adopt principles and practices that override fundamentalists of any
stripe whether they be Christian, Muslim, Jewish or Economic. In
addition, religious people should pay more attention to their holy
books. There is nothing in the Bible that would legitimize a preventive
war, with its carpet bombing, or the launch of a drone or missile
intended to kill one person when there is risk that innocent bystanders
will also die. Similarly, there is nothing in the Qur’an that would
justify suicide bombing that results in the random death of innocents. Global Hope If
you get the impression that the world is going to hell in a hand basket
you have heard me correctly. But it doesn’t need to be so. There are
remedies but they involve massive change in the areas discussed – none
of which are even on the political radar at present. There is light at
the end of the tunnel but, as Sir John Quinton, a former chairman of
Barclay’s Bank said, “Bankers sometimes look on politicians as people who, when they see light at the end of the tunnel, order more tunnel.” What
we are really talking about is restoring democracy to countries that
not only claim they have it, but also take pride in trying to export it,
even though they don’t really qualify as democratic as defined in the
dictionary. In Webster’s it is: “government in which supreme power is
vested in the people and exercised by them or their elected
representatives.” To begin, Wall Street has been the dominant power in
the U.S. for decades, and still is. Add to that the fact that the
Commander-in-Chief of the Armed Forces, the President of the United
States, does not have the security clearance for a number of projects
controlled by troops under his command, and you have to conclude that
the U.S. is not really a democracy. The same can be said about Canada, the United Kingdom, Germany and myriad countries that are really puppets of
the International Financial System. In each case the real interests of
citizen voters is subjugated to the demands of international finance. There
is a sad irony in reading U.S. history of the pre-revolutionary and
revolutionary days. Historians often attribute the revolution to the tax
on tea. On the other hand, “[Benjamin] Franklin cited restrictions upon
paper money as one of the main reasons for the alienation of the
American provinces from the mother country.” The U.S. won the
revolutionary war but then lost the next critical one when it adopted
the British banking system instead of pursuing the better model
their provinces had been experimenting with. For the U.S. now to inflict the British practice on countries around the world, using the International Monetary Fund and World Bank as
enforcers, is comparable to the King’s edict that gave birth to the
United States. So the financial chains of oppression have to be broken
and freedom restored to citizens everywhere. It’s time to forget the
tea party and address the critically important issues facing the U.S.
and the world. All of these issues are non-partisan by definition and
deserve the attention and support of all genuine patriots without
distinction of race, color, religion or political affiliation – both in
the U.S. And worldwide. We must unite to preserve and enhance the
beautiful satellite that is our birthright. An Agenda for Action The first and most urgent project is to clip the wings of
the bankers and democratize the money-creation function. In the U.S.
the Federal Reserve System must be abolished and its alleged function of
regulating the money supply be assumed by the federal government or an
agency under its direct control. The most powerful and valuable tool in
the economic arsenal must be available to the representatives of the
people who can be held responsible for their success or failure. Some
monetary reformers recommend that governments create 100% of new money
in a debt free form, greenbacks or equivalent. In the interests of a
fast and smooth transition I am suggesting that a ratio of 34%
government-created money to 66% bank-created money would work
satisfactorily. Banks would be required to maintain 34% cash reserves
against their deposits. The important thing is that governments must
immediately create the large sums necessary to balance their budgets and
get their economies running at maximum output again. I am talking about
an infusion of perhaps $10 trillion U.S. Dollar equivalent to start and
more if needed to get economies up to speed and to reduce unemployment
worldwide by at least half, with the creation of millions of new jobs. Is
this likely to cause massive inflation, as the financial cartel will
immediately allege, because it is one of its longest running and most
successful bugbears? The answer
to their phony phonetics is a resounding “no.” As any economist should
know, it is the amount of money that is created that influences prices,
and not who prints it. So as long as governments limit what economists
call “the multiplier effect” there will be no problem. Certainly the present system has been inflationary. A 1950 U.S. dollar is only worth 7.5 cents today.
A common sense monetary system should produce better results than that.
So there is no reason why the banking system should not be
fundamentally reformed – at once! There are four other actions that I think we, the people of the world should demand of our politicians. 1.
A law must be passed at once to prohibit all politicians, candidates
for political office and political parties from accepting money from any
financial institution as well as make it a criminal offense for any
such institution either directly or indirectly to offer it. 2. World leaders must adopt a 10-year time frame to reduce greenhouse emissions by 90 percent. 3.
The U.N. should declare 2012 the year of
forgiveness and reconciliation – a new era of cooperation and (agape)
love between races, tribes, religions, nations, and regions both mondial
and intergalactic. We have so much to learn in
many areas including medicine and food production. So
the U.S. must relinquish its privileged position as the center of “the
loop” as part of a new kind of leadership in creating the better world
we all dream of. International Finance vs. The People of the World None
of this vision of a just and peaceful world will be possible unless the
all-pervasive power of the international banks has been broken. In 1999
I wrote a book in which I said the next world war would be between the
banks and the people of the world. There have been skirmishes for
centuries and, so far, the banks have always come out on top. They are
now taking advantage of the recent meltdown, and the resulting sovereign
debt crisis to line up their heavy artillery including the
International Monetary Fund, the World Bank, the Federal Reserve System
and the Bank for International Settlements for a final conclusive
battle. As always the aim of the
game is to rob the people of the world of their sovereign right to
govern their own affairs, and to entrench the power of the international
banks, their elite industrial allies and a small cabal of military
insiders who run the world as their private fiefdom. The word “unjust”
is too small a word by far to describe what they are up to. If any skeptics think I am overstating the case don’t take my word for it.. Go to www.victoryfortheworld.net and
read some of the books that can be used as references. A hundred pages
of The Web of Debt, for example, setting out the history of money, will
probably be enough to make you sick at your stomach. I stopped reading
it at night because if often made me so angry I couldn’t sleep. I
entered politics more than 60 years ago because I thought recessions
were quite unnecessary. They were monetary phenomena with a relatively
easy fix.. I have made hundreds of speeches on the subject and convinced
a few thousand people. But never the movers and shakers. And the
mainline press were less than helpful. They were so jaundiced that they
were not interested in a maverick speaking truth to power. So it was
always a case of David vs. Goliath, to use a Biblical analogy. Now,
for the first time, the power exists to turn the tables and go for the
jugular. The internet is providing power to the people that they have
never enjoyed before. The young people of the world, in concert with the
thousands of their parents and others who care about the state of the
world can use the power of social networking to effect a miracle on
their own behalf and that of succeeding generations. The valiant
people of Tunisia and Egypt have shown the way by achieving what was
believed to be impossible. We share their euphoria. At the same time
they, and we, must acknowledge that it is only the beginning. Real
freedom will only be possible when they have escaped from the tyranny of
international banks, and Wall Street is no longer able to manipulate
the price of their daily bread. A good start might be to
distribute a million copies of this speech and translate it into a
number of languages. Then the rising generation can bombard the
barricades through their social networks. Regime change is not necessary
except for leaders who refuse to see the light. But concerned citizens
of the world should band together and rattle the cages of all federal
politicians. Tell them bluntly that they must vigorously support the
above agenda or face inevitable defeat at the next election. It is a
simple message, but the only one they understand. At
a press conference on March 29, 2001 announcing the U.S. was backing
out of the Kyoto Protocol, President George W. Bush said, “A friend is
someone who tells you the truth.” That is what I have been doing today.
It is a message of global hope for every race, color, religion and
nationality in the world. -------------------- Paul Hellyer 20 Bay St., 12th Floor Toronto, Ontario M5J 2N8 Canada Tel: 416/850-1375 phellyer@sympatico.ca -- "War,
Fascism, concentration camps, rubber truncheons, atomic bombs, etc.,
are what we daily think about, and therefore to a great extent what we
write about, even when we do not name them openly. We cannot help this.
When you are on a sinking ship, your thoughts will be about sinking
ships." --George Orwell (1903-1950)
Examples of World Banking Fraud across the Globe today Added by Bill Woollam
1) Rothschilds Stage Revolutions in Tunisia and Egypt To Kill Islamic Banks In Emerging North African Markets http://www.puppet99.com/?p=126
Today, most American students don't
even understand what a central bank is, much less that the battle
over central banks is one of the most important themes in U.S.
history. The truth is that our nation was birthed in the midst of a
conflict over taxation and the control of our money. Central banking
has played a key role in nearly all of the wars that America has
fought. Presidents that resisted the central bankers were shot,
while others shamefully caved in to their demands. Our current
central bank is called the Federal Reserve and it is about as
"federal" as Federal Express is. The truth is that it is a
privately-owned financial institution that is designed to ensnare
the U.S. government in an endlessly expanding spiral of debt from
which there is no escape. The Federal Reserve caused the Great
Depression and the Federal Reserve is at the core of our current
economic crisis. None of these things are taught to students in
America's schools today.
In 2010, young Americans are
taught a sanitized version of American history that doesn't even
make any sense. As with so many things, if you want to know what
really happened just follow the money.
The following
are 41 facts about the history of central banks in the United States
that every American should know….
#1 As a result of the
Seven Years War with France, King George III of England was deeply
in debt to the central bankers of England.
#2 In an
attempt to raise revenue, King George tried to heavily tax the
colonies in America.
#3 In 1763, Benjamin Franklin was
asked by the Bank of England why the colonies were so prosperous,
and this was his response….
"That is simple. In the
colonies we issue our own money. It is called Colonial Scrip. We
issue it in proper proportion to the demands of trade and industry
to make the products pass easily from the producers to the
consumers.
In this manner, creating for ourselves our
own paper money, we control its purchasing power, and we have no
interest to pay to bankers."
#4 The Currency Act of
1764 ordered the American Colonists to stop printing their own
money. Colonial scrip (the money the colonists were using at the
time) was to be exchanged at a two-to-one ratio for "notes" from the
Bank of England.
#5 Later, in his autobiography,
Benjamin Franklin explained the impact that this currency change had
on the colonies….
"In one year, the conditions were so
reversed that the era of prosperity ended, and a depression set in,
to such an extent that the streets of the Colonies were filled with
unemployed."
#6 In fact, Benjamin Franklin stated
unequivocally in his autobiography that the power to issue currency
was the primary reason for the Revolutionary War….
"The
colonies would gladly have borne the little tax on tea and other
matters had it not been that England took away from the colonies
their money, which created unemployment and dissatisfaction. The
inability of the colonists to get power to issue their own money
permanently out of the hands of George III and the international
bankers was the primary reason for the Revolutionary
War."
#7 Gouverneur Morris, one of the authors of the
U.S. Constitution, solemnly warned us in 1787 that we must not allow
the bankers to enslave us….
"The rich will strive to
establish their dominion and enslave the rest. They always did. They
always will… They will have the same effect here as elsewhere, if we
do not, by (the power of) government, keep them in their proper
spheres."
#8 Unfortunately, those warning us about the
dangers of a central bank did not prevail. After an aborted attempt
to establish a central bank in the 1780s, the First Bank of the
United States was established in 1791. Alexander Hamilton (who had
close ties to the Rothschild banking family) cut a deal under which
he would support the move of the nation's capital to Washington D.C.
in exchange for southern support for the establishment of a central
bank.
#9 George Washington signed the bill creating the
First Bank of the United States on April 25, 1791. It was given a 20
year charter.
#10 In the first five years of the First
Bank of the United States, the U.S. government borrowed 8.2 million
dollars and prices rose by 72 percent.
#11 The
opponents of central banking were not pleased. In 1798, Thomas
Jefferson said the following….
"I wish it were possible
to obtain a single amendment to our Constitution – taking from the
federal government their power of borrowing."
#12 In
1811, the charter of the First Bank of the United States was not
renewed.
#13 One year later, the War of 1812 erupted.
The British and the Americans were at war once
again.
#14 In 1814, the British captured and burned
Washington D.C., but the Americans subsequently experienced key
victories at New York and at New Orleans.
#15 The
Treaty of Ghent, officially ending the war, was ratified by the U.S.
Senate on February 16th, 1815 and was ratified by the British on
February 18th, 1815.
#16 In 1816, another central bank
was created. The Second Bank of the United States was established
and was given a 20 year charter.
#17 Andrew Jackson,
who became president in 1828, was determined to end the power of the
central bankers over the United States.
#18 In fact, in
1832, Andrew Jackson's re-election slogan was "JACKSON and NO
BANK!"
#19 On July 10th, 1832 President Jackson said
the following about the danger of a central bank….
"It
is not our own citizens only who are to receive the bounty of our
government. More than eight millions of the stock of this bank are
held by foreigners… is there no danger to our liberty and
independence in a bank that in its nature has so little to bind it
to our country? … Controlling our currency, receiving our public
moneys, and holding thousands of our citizens in dependence… would
be more formidable and dangerous than a military power of the
enemy."
#20 In 1835, President Jackson completely paid
off the U.S. national debt. He is the only U.S. president that has
ever been able to accomplish this.
#21 President
Jackson vetoed the attempt to renew the charter of the Second Bank
of the United States in 1836.
#22 Richard Lawrence
attempted to shoot Andrew Jackson, but he survived. It is alleged
that Lawrence said that "wealthy people in Europe" had put him up to
it.
#23 The Civil War was another opportunity for the
central bankers of Europe to get their hooks into America. In fact,
it is claimed that Abraham Lincoln actually contacted Rothschild
banking interests in Europe in an attempt to finance the war effort.
Reportedly, the Rothschilds were demanding very high interest rates
and Lincoln balked at paying them.
#24 Instead, Lincoln
pushed through the Legal Tender Act of 1862. Under that act, the
U.S. government issued $449,338,902 of debt-free
money.
#25 This debt-free money was known as
"Greenbacks" because of the green ink that was
used.
#26 The central bankers of Europe were not
pleased. The following quote appeared in the London Times in
1865….
"If this mischievous financial policy, which has
its origin in North America, shall become endurated down to a
fixture, then that Government will furnish its own money without
cost. It will pay off debts and be without debt. It will have all
the money necessary to carry on its commerce. It will become
prosperous without precedent in the history of the world. The
brains, and wealth of all countries will go to North America. That
country must be destroyed or it will destroy every monarchy on the
globe."
#27 Abraham Lincoln was shot dead by John
Wilkes Booth on April 14th, 1865.
#28 After the Civil
War, all money in the United States was created by bankers buying
U.S. government bonds in exchange for bank notes.
#29
James A. Garfield became president in 1881, and he was a staunch
opponent of the banking powers. In 1881 he said the
following….
"Whoever controls the volume of money in
our country is absolute master of all industry and commerce…and when
you realize that the entire system is very easily controlled, one
way or another, by a few powerful men at the top, you will not have
to be told how periods of inflation and depression
originate."
#30 President Garfield was shot about two
weeks later by Charles J. Guiteau on July 2nd, 1881. He died from
medical complications on September 19th, 1881.
#31 In
1906, the U.S. stock market was setting all kinds of records.
However, in March 1907 the U.S. stock market absolutely crashed. It
is alleged that elite New York bankers were
responsible.
#32 In addition, in 1907 J.P. Morgan
circulated rumors that a major New York bank had gone bankrupt. This
caused a massive run on the banks. In turn, the banks started
recalling all of their loans. The panic of 1907 resulted in a
congressional investigation that ended up concluding that a central
bank was "necessary" so that these kinds of panics would never
happen again.
#33 It took a few years, but the
international bankers finally got their central bank in
1913.
#34 Congress voted on the Federal Reserve Act on
December 22nd, 1913 between the hours of 1:30 AM and 4:30
AM.
#35 A significant portion of Congress was either
sleeping at the time or was already at home with their families
celebrating the holidays.
#36 The president that signed
the law that created the Federal Reserve, Woodrow Wilson, later
sounded like he very much regretted the decision when he wrote the
following….
"A great industrial nation is controlled by
its system of credit. Our system of credit is privately
concentrated. The growth of the nation, therefore, and all our
activities are in the hands of a few men … [W]e 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 the duress of
small groups of dominant men."
#37 Between 1921 and
1929 the Federal Reserve increased the U.S. money supply by 62
percent. This was the time known as "The Roaring
20s".
#38 In addition, highly leveraged "margin loans"
became very common during this time period.
#39 In
October 1929, the New York bankers started calling in these margin
loans on a massive scale. This created the initial crash that
launched the Great Depression.
#40 Rather than expand
the money supply in response to this crisis, the Federal Reserve
really tightened it up.
#41 In fact, it was reported
that the U.S. money supply contracted by eight billion dollars
between 1929 and 1933. That was an extraordinary amount of money in
those days. Over one-third of all U.S. banks went bankrupt. The New
York bankers were able to buy up other banks and all kinds of other
assets for pennies on the dollar.
But are American
students being taught any of this today? Of course
not. In fact, it is a rare student that can even
adequately explain what a central bank is. We have lost
so much of what is important about our history. And you
know what they say – those who forget history are doomed to repeat
it.
It is absolutely critical that we educate as many
Americans as possible about what is really going on in our financial
system and about why we need to make some truly fundamental
changes.— court jester -William Boyd
