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  • Writer's picturescottforbes

Neither Federal nor has Reserves

The money power preys upon the nation in times of peace and conspires against it in times of adversity. It is more despotic than a monarchy, more insolent than autocracy, more selfish than bureaucracy. The money power will endeavor to prolong its reign by working upon the prejudices of the people, until the wealth is aggregated in a few hands, and the republic is destroyed. —Abraham Lincoln

Many people do not know this, but the Federal Reserve is not federal and there are no reserves. The twelve Federal Reserve banks are not even banks. They are privately owned “corporations”, and have controlled the money supply in the United States for over one hundred years. The Federal Reserve System is a story about limitless money and hidden global power and control, but we are conditioned to think otherwise. A bank cannot function in the United States unless it is a member of the Federal Reserve System. In the truest sense of the word, it is a legal oligopoly, designed to maximize profits, while minimizing competition between members, restricting access like a cartel, and utilizing the police power of government to enforce its rules. When a bank fails, the government steps in and settles with bank customers, but to do so they don’t use money provided by other banks or the Federal Reserve’s accounts, but with taxpayer dollars.

The Federal Reserve was chartered by an act of the US Congress in 1913, with the purpose to protect the United States from significant economic downturns by “providing a safer, more flexible, and more stable monetary and financial system.” Yet, in the 106 years since its chartering, the Federal Reserve has presided over fourteen such economic downturns, or one every seven years on average. By any set of standards, this is a dismal record. The structure of the Federal Reserve System was conceived at a secret meeting in 1910 on Jekyll Island in Georgia. Soon after the 1907 bank panic, Congress formed the National Monetary Commission, at the urging of the banks. Senator Nelson W. Aldrich of Rhode Island, one of the most powerful men in Washington, D.C., chaired the committee. The Senator was an investment associate of banker J.P. Morgan, personally had extensive holdings in banking, manufacturing, and utilities, and was quite wealthy by any standard. His son-in-law was John D. Rockefeller, who in today’s dollars might be considered one of the richest Americans of all time. His son David Rockefeller followed in his father’s footsteps to run Chase Manhattan Bank, now JPMorgan Chase, and to be the “father” of the globalist or New World Order movement.

Senator Aldrich invited several bankers and economic scholars to this secret meeting on Jekyll Island, under the guise of a duck-shooting excursion. These individuals were: former Harvard University professor of economics Dr. A. Piatt Andrew, who was the Assistant Secretary of the US Treasury; J.P. Morgan & Co. partner Henry P. Davison; National City Bank president Frank A. Vanderlip; Benjamin Strong, head of J.P. Morgan’s Bankers Trust Company; and Kuhn, Loeb, and Company partner Paul M. Warburg, a representative of the Rothschild banking dynasty. It’s believed that as much as one-sixth of the wealth in the world at the time was represented by these individuals holding a private meeting on Jekyll Island, Georgia.

Following this meeting, Congress and the President approved the formation of the Federal Reserve System. By this time in 1913, control over financial resources was already quite concentrated under banks and investment firms run by the Morgans and Rockefellers, but this solidified even broader influence, particularly the finances of the US government. Today, the Federal Reserve can prop up an economy or they can bring one to its knees. They can finance businesses and economic growth, or they can cripple a company, an industry, or even an entire country’s or the world’s economy with their actions. Yet, neither the President nor members of Congress have any real oversight over the Federal Reserve and their actions. By law, Congress must approve the President’s appointment of the head of the Federal Reserve, but this is a mere formality. The President, any member of Congress, or a representative of any governmental entity may not enter a Federal Reserve Building, without high-level permission to do so. The dealings of the Federal Reserve are held in secret, with the financial markets hanging on every hint of what the Federal Reserve will do to monetary policy and interest rates.

As mentioned previously, today’s monetary system can probably be traced back to 1743 when Amschel Moses Bower, a goldsmith, began lending money to customers in his hometown in Germany. The red shield with a Roman eagle on it that hung over the front door to his shop caused everyone to call his business “Rothschild,” a moniker his family later adopted as their bloodline name. This family has amassed considerable wealth and publicly is said to be worth $350 billion. My sense is that this number may be significantly understated and could be in the trillions or even hundreds of trillions of dollars. How could we ever know?

Skipping ahead, following the Revolutionary War, the United States was in need of currency to rebuild and move forward. A wealthy arms dealer, Robert Morris, offered to establish a central bank in America, by depositing funds and allowing these funds to be loaned through fractional reserve banking. The US government was then able to put many times more currency into circulation than what Morris deposited. Once established, Morris was able to monopolize the banking system in the United States. This system went through several iterations, until in 1816 the Rothschild family established the Second Bank of The United States. The US government realized such control to be a problem and shut down this national bank, leaving states to issue their own currency.

Next came the Civil War. President Lincoln needed money to fund the war effort but, not surprisingly, could not get congressional approval to print the money needed. In came the bankers. They proposed the National Bank Act, which put them again back in control of lending money to the government. Lincoln attempted to reverse this act, following the war, but was assassinated. Many believe that the bankers orchestrated Lincoln’s death.

The last President to directly attempt to curb the power and influence of the Federal Reserve was John F. Kennedy. On June 4, 1963, he issued Executive Order 11110, which gave the US government the power to issue its own currency, taking this responsibility from the Federal Reserve. This could have severely affected the operating of the Federal Reserve or even put it out of business. Subsequently, President Kennedy was assassinated on November 22, 1963, and the US currency he had issued was immediately taken out of circulation. Ninety-one percent of all US paper currency in circulation today has been issued by the Federal Reserve, as written on the front of almost every paper note or bill.

Prior to Kennedy, several other Presidents attempted to curb the power of the central banks during their time in office. Andrew Jackson vetoed the renewal of the charter for the Bank of the United States on July 10, 1832. He once said about the international bankers, “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.” Subsequently, there was an unsuccessful assassination attempt on his life, and he later died of the wounds inflicted during the attempt. President Garfield declared that, “Whoever controls the supply of currency would control the business and activities of all the people.” Garfield was the second of four Presidents to be assassinated, following Abraham Lincoln and preceding William McKinley and John F. Kennedy.

Still today, when the US government runs out of money, it issues bonds, many of which are purchased by the Federal Reserve, which in turn charges interest to the US government. The Federal Reserve purchases these bonds from its member banks, using credit it has created out of thin air. This has the same effect as printing money. Profits generated by the Federal Reserve are distributed to its private shareholders. J.W. McCallister, an oil industry insider with House of Saud (ruling party of Saudi Arabia) connections, wrote in The Grim Reaperthat information he acquired from Saudi bankers cited 80 percent ownership of the New York Federal Reserve Bank—by far the most powerful the Federal Reserve branches—is associated with just eight families, four of which reside in the United States. They are: the Goldman Sachs, Rockefellers, Lehmans, and Kuhn Loebs of New York; the Rothschilds of Paris and London; the Warburgs of Hamburg; the Lazards of Paris; and the Israel Moses Sieffs of Rome.

Where does all the trillions of dollars come from that the Federal Reserve is lending the US government? Who approves establishing the electronic basis for doing so? Why is it that the paper currency of the United States is inscribed with the words Federal Reserve Note, when the Federal Reserve is neither federal, a bank, nor has reserves? Yet, every attempt since 1963 to look into the monetary affairs of the Federal Reserve has been rebuked. There has been a lot of talk, but no action from politicians, for maybe obvious reasons. The power of central bankers doesn’t end at the Federal Reserve. The central banks of other countries, the International Monetary Fund, and the World Bank are examples of institutions established to expand the control and flow of money worldwide.

The truth is that the name Federal Reserve Bank was designed to deceive, and it still does. It has enabled a small group of elite to manipulate the US and global economies, for its own agenda and benefit, and has enlisted the US government and that of other nations as its enforcers. Attempts to audit the Federal Reserve continue to meet with failure, and it is virtually impossible to muster public support for any issue that has the benefit of a media blackout. I have worked thirty years in consulting, with most of that time in banking, and have seen many economic ups and downs within our economy. I now understand the power that central bankers have over people and how lives can be adversely affected by their decisions and actions.

The truth is that money is imbedded in the functioning of our society, but has caused such a skewing of perspectives in so many. The role of money and who controls it should be one of the greatest philosophical debates of our time. Yet, we cannot look at money without understanding that our societal problems break down into a common root cause, which has always been human conquest for total control of the planet. The United States and Western Europe have been some of the worst of the modern offenders. Sovereign nations, for centuries, embarked on conquests for control of land, natural resources, and the conversion of native people to their religious belief systems. Indigenous populations all over the world were literally stripped of their resources and identities. This happened with the Native Americans in the United States, the Inca Empire in Peru, and many other people throughout history. The leaders of nations and the heads of their respective churches did not care how they achieved their objectives, whether this was wealth or the blind faith of their citizens. We have to look at the past and understand that a new path forward is needed, which includes a different relationship with money and also the Church. We will have to set aside the present motivations for control and reintegrate and understand the symbiotic relationship between man and nature as an interrelated ecosystem of Earth. We must stop focusing on money, however defined, as a barometer of success and focus on what is really important, which is our mission in this lifetime, if we are to survive as a human race. All of this is what the ancients have always known, but we stopped understanding at some point along the way.

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