The Money Masters - Full Documentary

what's going on in America today why are we over our heads in debt why can't the politicians bring debt under control why are so many people often both parents now working at low-paying dead-end jobs and still making do with less watch the future of the American economy and way of life why does the government tell us inflation is low when the buying power of our paychecks is declining at an alarming rate only a generation to go bread was a quarter and you could get a new car for 1995 the problem is that since 1864 we've had a debt based banking system all our money is based on government debt we cannot extinguish government debt without extinguishing our money supply that's why talk of paying off the national debt without reforming our banking system is an impossibility that's why the solution does not line discussing the size of the national debt rather it lies in reforming our banking system this is the Federal Reserve headquarters in Washington it sits on this very impressive address right on Constitution Avenue right across from the Lincoln Memorial but is it federal is it really part of the United States government well what we're about to show you is that there's nothing federal about the Federal Reserve and there are no reserves the name is a deception created back before the Federal Reserve Act was passed in 1913 to make Americans think that America's central bank operates in the public interest the truth is that the Federal Reserve is a private bank owned by private stockholders and run purely for their private profit that's exactly correct the that is a privately owned for profit corporation which again has no reserves at least no reserves available to back up the Federal Reserve notes which is our common currency oh absolutely the Federal Reserve is neither federal and has doubtful reserves it's a private bank that is owned by member banks and it was charter under the guise of deceit by an act of Congress in 1913 if there's still any doubt whether the Federal Reserve is a part of the US government check your local telephone book in most cities it is not listed in the blue government pages it is listed in the business white pages right next to Federal Express another private company but more directly US courts have ruled time and time again that the Fed is a private corporation why can't Congress do something about the Fed most members of Congress just don't understand the system and the few who do are afraid to speak up for example initially a veteran congressman from Chicago asked us if he could be interviewed for this video however both times our camera crew arrived at his office to do the interview this was all we were able to film the congressman never appeared and eventually decided he no longer wanted to participate but a few others in Congress have been bolder over the years here are three quick examples in 1923 representative Charles a Lindbergh a Republican from Minnesota and father of the famed aviator lucky Lindy put it this way the financial system has been turned over to the federal reserve board that board administers the finance system by authority of a purely profiteering group the system is private conducted for the sole purpose of obtaining the greatest possible profits from the use of other people's money one of the most outspoken critics in Congress of the Fed was the former chairman of the House banking and currency committee during the Great Depression years Louis T McFadden Republican of Pennsylvania said in 1932 we have in this country one of the most corrupt institutions the world has ever known I refer to the Federal Reserve Board this evil institution has impoverished the people of the United States and has practically bankrupted our government it has done this through the corrupt practices of the moneyed vultures who control it senator Barry Goldwater was a frequent critic of the fed most Americans have no real understanding of the operation of the International money lenders the accounts of the Federal Reserve System have never been audited it operates outside the control of Congress and manipulates the credit of the United States the Federal Reserve really even though it is not part of the federal government it is more powerful than the federal government it's more powerful than the president of Congress and the courts a lot of people challenged me on that but let me prove my case the Federal Reserve determines what the average person's car payment is going to be what their house payment is going to be and whether they have a job or not and I submit to you that that's total control and the Federal Reserve is the largest single creditor of the United States government what does proverbs tell us the borrower is servant to the lender what one has to understand is that from the day the Constitution was adopted right up to today the folks who profit from privately-owned central banks as Madison called them the money changers have fought a running battle for control over who gets to print America's money why is who prints the money so important think of money as just another commodity if you have a monopoly on a commodity that everyone needs everyone wants and nobody has enough of there are lots of ways to make a profit and also exert tremendous political influence that's what this battle is all about throughout the history of the United States the money power has gone back and forth between Congress and some sort of privately-owned central bank the founding fathers knew the evils of a privately-owned central bank first of all they had seen how the privately-owned British central bank the Bank of England had run up the British national debt to such an extent that Parliament had been forced to place unfair taxes on the American colonies in fact as we'll see later Ben Franklin claimed that this was the real cause of the American Revolution most of the founding fathers realized the potential dangers of banking and feared bankers accumulation of wealth and power Jefferson put it this way I sincerely believed that banking institutions are more dangerous to our liberties than standing armies the issuing power should be taken from the banks and restored to the people to whom it properly belongs that succinct statement of Jefferson is in fact the solution to all our economic problems today it bears repeating the issuing power should be taken from the banks and restored to the people to whom it properly belongs James Madison the main author of the Constitution agreed interestingly he called those behind the central bank scheme money changers Madison strongly criticized their actions history records the theme money changers have used every form of abuse intrigue deceit and violent means possible to maintain their control over governments by controlling money and its issuance the battle over who gets to issue our money has been the pivotal issue throughout the history of the United States wars are fought over it depressions are caused to acquire it yet after World War one this battle was rarely mentioned in newspapers or history books why by World War one the money changers with their dominant wealth had seized control of most of the nation's press throughout US history this battle over who gets the power to issue our money has raged in fact it's changed hands back and forth eight times since 1764 yet this fact has virtually vanished from public view for over three generations behind a smokescreen emitted by fed cheerleaders in the media until we stop talking about deficits and government spending and start talking about who controls how much money we have it's all just a big shell game a complete and utter deception it won't matter if you pass an ironclad amendment to the Constitution mandating a balanced budget our situation is only going to get worse until we root out the cause at its source what's the solution for our national problem first of all education that's what this video presentation is all about but secondly we must act we must take back the power to issue our own money issuing our own money is not a radical solution I want to stress that it's the same solution used at different points in US history by men like Benjamin Franklin Thomas Jefferson Andrew Jackson Martin Van Buren and Abraham Lincoln so to sum it up in 1913 Congress gave an independent central bank deceptively named the Federal Reserve a monopoly over issuing America's money and the debt generated by this quasi private corporation is what is killing the American economy though the Federal Reserve is now the most powerful central bank in the world it was not the first so where did this idea come from to really understand the magnitude of the problem we have to travel back to Europe just who are these money changers James Madison spoke of in the Bible 2,000 years ago Jesus drove the money changers from the temple it was the only time Jesus used force during his ministry what were money changers doing in the temple when Jews came to Jerusalem to pay their temple tax they could only pay it with a special coin the half shekel of the sanctuary this was a half ounce of pure silver about this size it was the only coin at that time which was pure silver and of assured weight without the image of a pagan Emperor therefore the Jews the half shekel was the only coin acceptable to God but these coins were not plentiful the money changers had cornered the market on them then they raised the price just like any other commodity to whatever the market would bear in other words money changers were making exorbitant profits because they held a virtual monopoly on money the Jews had to pay whatever they demanded to Jesus this totally violated the sanctity of God's house but the money changing scam did not originate in Jesus's day two hundred years before Christ Rome was having trouble with money changers - early Roman emperors had tried to diminish the power of the money changers by reforming Ussery laws and limiting land ownership to 500 acres they were both assassinated in 48 BC Julius Caesar took back the power to coin money from the money changers and minted coins for the benefit of all with this new plentiful supply of money he built great public works projects by making money plentiful Caesar won the love of the common man but the money changers hated him some believe this was an important factor in Caesars assassination one thing is for sure with the death of Caesar came the demise of plentiful money in Rome taxes increased as did corruption just as in the case of America today usury and debased coin became the rule eventually the Roman money supply was reduced by 90% as a result the common people lost their lands and their homes justice is about to happen soon in America with the demise of plentiful money the mass has lost confidence in the Roman government and refused to support it Rome plunged into the gloom of the Dark Ages a thousand years after the death of Christ money changers those who loan out and manipulate the quantity of money were active in medieval England in fact they were so active that acting together they could manipulate the entire English economy these were not bankers per se the money changers generally were the Goldsmith's they were the first bankers because they started keeping other people's gold for safekeeping in their vaults the first paper money was merely a receipt for gold left at the goldsmith paper money caught on because it was more convenient than carrying around a lot of heavy gold and silver coins eventually Goldsmith's noticed that only a small fraction of the depositors ever came in and demanded their gold at any one time Goldsmith's started cheating on the system they discovered that they could print more money than they had gold and usually no one would be the wiser then they could loan out this extra money and collect interest on it this was the birth of fractional reserve banking that is loaning out many times more money than you have assets on deposit so if a thousand dollars in gold were deposited with them they could loan out about ten thousand dollars in paper money and draw interest payments on it and no one would ever discover the deception by this means Goldsmith's gradually accumulated more and more wealth and used this wealth to accumulate more and more gold today this practice of loaning out more money than there are reserves is known as fractional reserve banking every bank in the United States is allowed to loan out at least ten times more money than they actually have that's why they get rich on charging let's say eight percent interest it's not really eight percent per year which is their income it's 80 percent that's why bank buildings are always the largest in town but does that mean that all interest or all banking should be illegal hardly in the Middle Ages canon law the law of the Catholic Church forbade charging interest on loans this concept followed the teachings of Aristotle and st. Thomas Aquinas they taught that the purpose of money was to serve the members of society to facilitate the exchange of goods needed to lead a virtuous life interest in their belief hindered this purpose by putting an unnecessary burden on the use of money in other words interest was contrary to reason and justice reflecting church law in the Middle Ages Europe forbade charging interest on loans and made it a crime called usury as commerce grew and therefore opportunities for investment arose in the late Middle Ages it came to be recognized that to loan money had a cost for the lender both in risk and in lost opportunity so some charges were allowed but not interest per se but all moralists no matter what religion condemned fraud oppression of the poor and injustice is clearly immoral as we will see fractional reserve lending is rooted in a fraud results in widespread poverty and reduces the value of everyone else's money the ancient Goldsmith's discovered that extra profits could be made by rowing the economy between easy money and tight money when they made money easier to borrow than the amount of money in circulation expanded money was plentiful people took out more loans to expand their businesses but then the money changers would tighten the money supply they would make loans more difficult to get what would happen just what happens today a certain percentage of people could not repay their previous loans and could not take out new loans to repay the old ones therefore they went bankrupt and had to sell their assets to the Goldsmith it's for pennies on the dollar the same thing is still going on today only today we call this rowing of the economy up and down the business cycle like Julius Caesar King Henry the first of England finally resolved to take the money power away from the Goldsmith's about 1100 AD Henry could have used anything as money seashells feathers or even yak dung as is often done in remote tibetan provinces but he invented one of the most unusual money systems in history it was called the tally stick system here I have one of the few surviving examples of this form British money which lasted 726 years until 1826 a tally stick the tally system was adopted to avoid the monetary manipulation of the Goldsmith's tally sticks were money fabricated out of sticks of polished wood notches were cut along one edge of the stick to indicate the denominations then the stick was split lengthwise through the notches so that both pieces still had a record of the notches the King kept one half to protect against counterfeiting then he would spend the other half into the economy and they would circulate his money this particular tally stick is huge it represented twenty five thousand pounds one of the original stockholders in the Bank of England purchased his original shares with this stick in other words he bought shares in the world's richest and most powerful corporation with a stick of wood it's ironic that after its formation in 1694 the Bank of England attacked the tally stick system because it was money outside the power of the money changers just as King Henry had wanted it to be why do people accept sticks of wood for money that's a great question throughout history people traded anything they thought had value and used as money you see the secret is that money is only what people agree on to use as money what's our paper money today it's really just paper but here's the trick King Henry ordered the tally sticks had to be used to pay the Kings taxes this built in demand for tally sticks immediately made them circulate and be accepted as money and they worked well in fact no other form of money has worked so well for so long as tally sticks keep in mind the British Empire was built under the tally stick system the tally stick system succeeded despite the fact that the money changers constantly attacked it by offering the metal coin system as competition in other words metal coins never went completely out of circulation but tally sticks hung on because they were good for the payment of taxes finally in the 1500s King Henry the eighth relaxed the laws concerning usury and the money changers wasted no time reasserting themselves they quickly made their gold and silver money plentiful for a few decades but when Queen Mary took the throne and tightened the usery laws again the money changers renewed the hoarding of gold and silver coins forcing the economy to plummet when Queen Mary's sister Queen Elizabeth the first took the throne she was determined to regain control over English money her solution was to issue gold and silver coins from the public treasury and take the control over the money supply away from the money changers although control over money was not the only cause of the English revolution in 1642 religious differences fueled the conflict monetary policy played a major role financed by the money changers Oliver Cromwell finally overthrew King Charles purged the parliament and put the king to death the money changes were immediately allowed to consolidate their financial power the result was that for the next 50 years the money changers plunged Great Britain into a series of costly Wars they took over a square mile of property in the center of London known as the City of London this area today is still known as one of the three predominant financial centres of the world conflicts with the Stuart Kings led the money changes in England - combined with those in the Netherlands to finance the invasion of William of Orange who overthrew the Stuart's in 1688 and took the English throne by the end of the 1600s England was in financial ruin fifty years of more or less continuous wars with France and Holland had exhausted her frantic government officials met with the moneychangers to beg for the loans necessary to pursue their political purposes the price was high a government sanctioned privately owned bank which could issue money created out of nothing it was to be the modern world's first privately owned central bank the Bank of England although it was deceptively called the Bank of England to make the general population think it was part of the government it was not like any other private corporation the Bank of England sold shares to get started the investors whose names were never revealed were supposed to put up one in a quarter million British pounds and gold coin to buy their shares in the bank but only 750 thousand pounds was ever received despite that the bank was duly chartered in 1694 and started out in the business of loaning out several times the money it supposedly had in reserves all at interest in exchange the new bank would loan British politicians as much of the new currency as they wanted as long as they secured the debt direct taxation of the British people so legalization of the Bank of England amounted to nothing less than legal counterfeiting of a national currency for private gain unfortunately nearly every nation now has a privately controlled central bank using the Bank of England as the basic model such as the power of these central banks that they soon take total control over a nation's economy it soon amounts to nothing but a plutocracy ruled by the rich it would be like putting control of the army in the hands of the Mafia the danger of tyranny would be extreme yes we need central bank's no we do not need them in private hands the central bank scam is really a hidden tax the nation sells bonds to the central bank to pay for things that does not have the political will to raise taxes to pay for but the bonds are purchased with money the central bank creates out of nothing more money in circulation makes your money worth less the government gets as much money as it needs and the people pay for it in inflation the beauty of the plan is that not one person in a thousand can figure it out because it's usually hidden behind complex sounding economics gibberish with the formation of the Bank of England the nation was soon a wash and money prices throughout the country doubled massive loans were granted for just about any wild scheme one venture proposed to drain the Red Sea to recover gold supposedly lost when the Egyptian army drowned pursuing Moses and the Israelites by 1698 government debt grew from the initial one and a quarter million pounds to sixteen million pounds naturally taxes were increased and then increased again to pay for all of this with the British money supply firmly in their grip the British economy began a wild roller coaster series of booms and depressions exactly the sort of thing a central bank claims it is determined to prevent there are two things which I think are intrinsic not just to the Bank of England but central banking generally the first is an involvement in the formulation of monetary policy with the specific objective of achieving monetary stability however since the Bank of England took control the British Pound has rarely been stable now let's take a look at the role of the Rothschild family the family said to be the wealthiest in the world [Music] this is Frankfurt Germany 50 years after the Bank of England opened its doors a goldsmith named Amschel moses bauer opened a coin shop a Counting house in 1743 and over the door he placed a sign depicting a Roman Eagle on a red shield the shop became known as the red shield firm or in German Rothschild when his son am Joe Meyer Bauer inherited the business he decided to change his name to Rothschild AM shall soon learned that loaning money to governments and Kings was more profitable than loaning to private individuals not only were the loans bigger but they were secured by the nation's taxes mayor Rothschild had five sons he trained them all and the skills of money creation then sent them out to the major capitals of Europe to open branch offices of the family banking business his first son Amschel Mayer stayed in Frankfurt to mind the hometown bank his second son Solomon was sent to Vienna his third son Nathan was clearly the most clever he was sent to London at age 21 in 1798 a hundred years after the founding of the Bank of England his fourth son Karl went to Naples and his fifth son Jacob went to Paris in 1785 Mayer Amschel moved his entire family to this larger house a five-story dwelling he shared with the ship family this house was known as the green shield the Rothschilds and the ships would play a central role in the rest of European financial history and in that of the United States the Rothschilds broke into dealings with European royalty here at Williams Hall the palace of the wealthiest man in Germany in fact the wealthiest monarch in all Europe Prince William of hesse-kassel at first the Rothschilds were only helping William speculate in precious coins but when Napoleon chased Prince William into exile he sent 550 thousand pounds a gigantic sum at that time to Nathan Rothschild in London with instructions for him to buy consoles British government bonds also called government stock but Rothschild used the money for his own purposes with Napoleon on the loose the opportunities of wartime investments were nearly limitless William returned here some time prior to the Battle of Waterloo in 1815 he summoned Rothschild and demanded his money back the Rothschilds returned William's money with the interest the British consuls would have paid him had the investment actually been made but the Rothschilds kept all the past profits they had made using Williams money Nathan Rothschild later bragged that in the 17 years he'd been in England he'd increased his original 20,000 pound stake given to him by his father by 2,500 times by cooperating within the family the Rothschilds soon grew unbelievably wealthy by the mid-1800s they dominated all European banking and were certainly the wealthiest family in the world they financed Cecil Rhodes making it possible for him to establish a monopoly over the diamond and gold fields of South Africa in America they financed the Harriman's and railroads the Vanderbilts and railroads and the press and Carnegie in the steel industry among many others in fact during World War one JP Morgan was thought to be the richest man in America but after his death it was discovered that he was actually only a lieutenant of the Rothschilds once Morgan's will was made it was discovered that he owned only 19% of jpmorgan companies by 1850 James Rothschild the heir of the French branch of the family was said to be worth 600 million French francs 150 million more than all the other bankers in France put together he built this mansion called Ferrier just east of Paris they'll helm the first on scene it exclaimed Kings couldn't afford this it could only belong to a Rothschild another 19th century French commentator put it this way there is but one power in Europe and that is Rothschild there is no evidence that their predominant standing in European or world finance has changed now let's take a look at the results the Bank of England had produced on the British economy and how that later was the root cause of the American Revolution by the mid 1700s the British Empire was nearing its height to power around the world but Britain had fought for costly wars in Europe since the creation of their privately-owned central bank the Bank of England the cost had been high to finance these Wars the British Parliament here had borrowed heavily from the bank by the mid 1700s the government's debt here in Britain was a hundred and forty million pounds a staggering sum for those days consequently the British government embarked on a programme of trying to raise revenues from their American colonies in order to make their interest payments to the bank but in America it was a different story the scourge of a privately-owned central bank had not yet hit this is Independence Hall in Philadelphia where the Declaration of Independence and Constitution were signed in the mid 1700s pre-revolutionary America was still relatively poor there was a severe shortage of precious metal coins to trade for goods so the early colonists were forced to experiment with printing their own homegrown paper money some of these experiments were successful Franklin was a big supporter of the colonies printing their own paper money in 1757 Franklin was sent to London he ended up stayin for the next 18 years here nearly until the start of the American Revolution during this period the American colonies began to issue their own money called colonial scrip the Endeavour was very successful it provided a reliable medium of exchange and it also helped to provide a feeling of unity between the colonies remember colonial scrip was just paper money debt-free money printed in the public interest and not backed by gold or silver coin in other words it was a totally fiat currency one day officials of the Bank of England asked Franklin how he would account for the newfound prosperity of the colonies without hesitation he replied that is simple in the colonies we issue our own money it is called colonial script 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 no one this was just common sense to Franklin but you can imagine the impact it had on the Bank of England America had learned the secret of money and that genie had to be returned to its bottle as soon as possible [Music] [Music] as a result Parliament hurriedly passed the Currency Act of 1764 this prohibited colonial officials from issuing their own money and ordered them to pay all future taxes in gold or silver coins in other words it forced the colonies on a gold or silver standard for those who still believed that a gold standard is the answer for America's current monetary problems look what happened to America after that writing in his autobiography Franklin said 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 Franklin claims that this was even the basic cause for the American Revolution as Franklin put it in his autobiography the colonies would gladly have borne a 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 the power to issue their own money permanently out of the hands of George the third and the international bankers was the prime reason for the Revolutionary War by the time the first shots were fired in Lexington Massachusetts on April 19th 1775 the colonies had been drained of gold and silver coin by British taxation as a result the Continental government had no choice but to print money to finance the war at the start of the Revolution the US money supply stood at 12 million dollars by the end of the war it was nearly 500 million as a result the currency was virtually worthless shoes sold for five thousand dollars a pair colonial scrip had worked because just enough was issued to facilitate trade as George Washington lamented a wagon load of money will scarcely purchase a wagon load of provisions today those who support a gold-backed currency pointed this period during the revolution to demonstrate the evils of a fiat currency but remember the same currency had worked so well 20 years earlier during times of peace that the Bank of England had Parliament outlawed towards the end of the Revolution the Continental Congress meeting here at Independence Hall grew desperate for money in 1781 they allowed Robert Morris their financial superintendent to open a privately-owned central bank incidentally Morris was a wealthy man who had grown wealthier during the revolution by trading war materials called the Bank of North America the new bank was closely modeled after the Bank of England it was allowed to practice fractional reserve banking that is it could lend out money it didn't have then charge interest on it if you or I were to do that we would be charged with fraud a felony the bank's charter called for private investors to put up four hundred thousand dollars worth of initial capital but when Morris was unable to raise the money he brazenly used his political influence to have gold deposited in the bank which had been loaned to America by France he then loaned this money to himself and his friends to reinvest in shares of the bank and like the Bank of England the bank was given a monopoly over the national currency soon the dangers became clear the value of American currency continued to plummet so four years later in 1785 the bank's Charter was not renewed the leader of the effort to kill the bank William Findlay of Pennsylvania explained the problem this way quote this institution having no principal but that of avarice will never be varied in its object to engross all the wealth power and influence of the state the men behind the Bank of North America Alexander Hamilton Robert Morris and the bank's president Thomas wiling did not give up only six years later Hamilton then secretary of the Treasury and his mentor Morris rammed a new privately-owned central bank through the new Congress called the first bank of the United States Thomas wiling again served as the bank's president the players were the same only the name of the bank was changed in 1787 colonial leaders assembled in Philadelphia to replace the ailing Articles of Confederation as we saw earlier both Thomas Jefferson and James Madison were unalterably opposed to a privately-owned central bank they had seen the problems caused by the Bank of England they wanted nothing of it as Jefferson later put it if the American people ever allow private banks to control the issue of their currency first by inflation then by deflation the banks and the corporations which grow up around them will deprive the people of all property until their children wake up homeless on the continent their fathers conquered during the debate over the future monetary system another one of the founding fathers governor Morris castigated the motivations of the owners of the Bank of North America governor Morris headed the committee that wrote the final draft of the Constitution Morris knew the motivations of the bank well along with his old boss Robert Morris governor Morris and Alexander Hamilton were the ones who had presented the original plan for the Bank of North America to the Continental Congress in the last year of the revolution in a letter he wrote to James Madison on July 2nd 1787 governor Morris revealed what was really going on 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 despite the defection of governor Morris from the ranks of the bank Hamilton Robert Morris Thomas whiling and their European backers were not about to give up they convinced the bulk of the delegates to the Constitutional Convention to not give Congress the power to issue paper money most of the delegates were still reeling from the wild inflation of the paper currency during the revolution they had forgotten how well colonial scrip had worked before the war but the Bank of England had not the money changers could not stand to have America printing her own money again so the Constitution is silent on the matter this Grievous defect left the door wide open for the money changers just as they had planned in 1790 less than three years after the Constitution had been signed the money changers struck again the newly appointed first secretary of the Treasury Alexander Hamilton proposed a bill to the Congress calling for a new privately-owned central bank coincidentally that was the very year that Amschel Rothschild made his pronouncement from his flagship bank in Frankfort let me issue and control a nation's money and I care not who writes the laws Alexander Hamilton was a to of the international bankers and he wanted to create the US Bank the be us of the bank of the stays and did so interestingly one of Hamilton's first jobs after graduating from law school in 1782 was as an aide to Robert Morris the head of the Bank of North America in fact the year before Hamilton had written Morris a letter saying a national debt if it is not excessive will be to us a national blessing a blessing to whom after a year of intense debate in 1791 Congress passed the bill and gave it a 20-year charter the new bank was to be called the first bank of the United States or be us here we are in front of the first bank of the United States in Philadelphia the bank was given a monopoly on printing US currency even though 80% of its stock would be held by private investors the other 20% would be purchased by the US government but the reason was not to give the government a piece of the action it was to provide the capital for the other 80% owners as with the old Bank of North America and the Bank of England before that the stockholders never paid the full amount for their shares the US government put up their initial two million dollars in cash then the bank threw the old magic of fractional reserve lending made loans to its charter investors so they could come up with the remaining eight million dollars of capital needed for this risk-free investment like the Bank of England the name of the Bank of the United States was deliberately chosen to hide the fact that it was privately controlled and like the Bank of England the names of the investors in the bank were never revealed many years later it was a common saying that the Rothschilds were the power behind the old Bank of the United States the bank was sold to Congress as a way to bring stability to the banking system and eliminate inflation so what happened over the first five years the US government bar 8.2 million dollars from the bank of the United States in the same five year period prices rose by 72% Jefferson as the new Secretary of State watched the borrowing with sadness and frustration unable to stop it I wish it were possible to obtain a single amendment to our Constitution taking from the federal government the power of borrowing millions of Americans feel the same way today they watch in helpless frustration as the federal government borrows the American economy into oblivion so although it was called the first bank of the United States it was not the first attempt at a privately-owned central bank in this country as with the Bank of North America the government put up most of the cash to get this private bank going then the bankers loaned the money to each other to buy the remaining stock in the bank it was a scam plain and simple and they wouldn't be able to get away with it for long but first we have to travel back to Europe to see how a single man was able to manipulate the entire British economy by obtaining the first news of Napoleon's final defeat here in Paris the Bank of France was organised in 1800 just like the Bank of England but Napoleon decided France had to break free of debt and he never trusted the Bank of France he declared that when a government is dependent upon bankers for money the bankers not the leaders of the government are in control the hand that gives is above the hand that takes money has no motherland finance ears are without patriotism and without decency their sole object is gained back in America unexpected help was about to arrive in 1800 Thomas Jefferson narrowly defeated John Adams to become the third Prez the United States by 1803 Jefferson and Napoleon had struck a deal the US would give Napoleon three million dollars in gold in exchange for a huge chunk of territory west of the Mississippi River the Louisiana Purchase with that three million dollars Napoleon quickly forged an army and set off across Europe conquering everything in his path but the Bank of England quickly rose to oppose him they financed every nation in his path reaping the enormous profits of war Prussia Austria and finally Russia all went heavily into debt in a futile attempt to stop Napoleon four years later with the main French Army in Russia 30 year-old Nathan Rothschild the head of the London office of the Rothschild family personally took charge of a bold plan to smuggle a much-needed shipment of gold right through France to finance an attack by the Duke of Wellington from Spain Nathan later bragged at a dinner party in London that it was the best business he'd ever done little did he know that he would do much better business in the near future Wellington's attacks from the south and other defeats eventually forced Napoleon to abdicate and louis xviii was crowned king napoleon was exiled to Elba a tiny island off the coast of Italy supposedly exiled from France forever while Napoleon was in exile on Elba temporarily defeated by England with the financial help of the Rothschilds America was trying to break free of its central bank as well in 1811 a bill was put before Congress to renew the charter of the Bank of the United States the debate grew very heated and the legislators of both Pennsylvania and Virginia passed resolutions asking Congress to kill the bank the press corps of the day attacked the bank openly calling it a great swindle a vulture a viper and a Cobra Oh to have an independent press once again in America a congressman named PB Porter attacked the bank from the floor of Congress saying if the bank's Charter was renewed Congress quote will have planted in the bosom of this Constitution of VIPRE which one day or another will sting the liberties of this country to the heart close quote prospects didn't look that good for the bank some writers have even claimed that Nathan Rothschild warned that the United States would find itself involved in a most disastrous war if the bank's charter were not renewed but it wasn't enough when the smoke had cleared the renewal bill was defeated by a single vote in the house and was deadlocked in the Senate by now America's fourth President James Madison was in the White House remember Madison was a staunch opponent of the bank his vice president George Clinton broke a tie in the Senate and sent the bank into oblivion within five months England attacked the US and the war of 1812 was on but the British were still busy fighting Napoleon and so the war of 1812 ended in a draw in 1814 though the money changers were temporarily down they were far from out it would take them only another two years to bring back their bank bigger and stronger than ever but now let's return to Napoleon because nothing else in history more aptly demonstrates the ingenuity of the Rothschild family than their control of the British stock market after Waterloo in 1815 a year after the end of the war of 1812 in America Napoleon escaped his exile and returned to Paris French troops were sent out to capture him but such was his charisma that the soldiers rallied around their old leader and hailed him as their Emperor once again in March of 1815 Napoleon equipped an army which Britain's Duke of Wellington defeated less than 90 days later at Waterloo some riders claimed Napoleon borrowed 5 million pounds from the Bank of England to rearm but it appears these funds actually came from the Ovar banking house in Paris nevertheless from about this point on it was not unusual for privately controlled central banks to finance both sides in a war why would a central bank finance opposing sides in a war because war is the biggest debt generator of them all a nation will borrow any amount for victory the ultimate loser is loan just enough to hold out the vain hope of victory and the ultimate winner is given enough to win besides such loans are usually conditioned upon the guarantee that the victor will honor the debts of the vanquished this is the Waterloo battlefield about 200 miles northeast of Paris in what today is Belgium here Napoleon suffered his final defeat but not before thousands of French and Englishmen gave their lives on a steamy summer day in July of 1815 right over there on June 18 1815 74,000 French troops met 67,000 troops from Britain and other European nations the outcome was certainly in doubt in fact had Napoleon attacked a few hours earlier he would probably have won the battle but no matter who won or lost back in London Nathan Rothschild planned to use the opportunity to try to seize control over the British stock and bond market and possibly even the Bank of England Rothschild stationed a trusted agent a man named Roth worth on the north side of the battlefield closer to the English Channel once the battle had been decided Roth Werth took off for the channel he delivered the news to Nathan Rothschild a full 24 hours before Wellington's own courier Rothschild hurried to the stock market and took up his usual position in front of an ancient pillar all eyes were on him the Rothschilds had a legendary communications network if Wellington had been defeated and Napoleon was loose on the continent again Britain's financial situation would become grave indeed Rothschild looked saddened he stood there motionless eyes downcast then suddenly he began selling other nervous investors saw that Rothschild was selling it could only mean one thing Napoleon must have one Wellington must have lost the market plummeted soon everyone was selling their consoles their British government bonds and prices dropped sharply but then Rothschild started secretly buying up the consoles through his agents for only a fraction of their worth hours before myths legends you say 100 years later the New York Times are in a story which said that Nathan's grandson had attempted to secure a court order to suppress a book with this stock market story in it the Rothschild family claimed the story was untrue and libelous but the court denied the Rothschilds request and ordered the family to pay all court costs what's even more interesting about this story is that some authors claim that the day after the Battle of Waterloo in a matter of hours Nathan Rothschild came to dominate not only the bond market but the Bank of England as well whether or not the Rothschild family seized control of the Bank of England the first privately owned central bank in a major European nation and the wealthiest one thing is certain by the mid-1800s the Rothschilds were the richest family in the world bar none they dominated the new government bond markets and branched into other banks and industrial concerns in fact the rest of the 19th century was known as the age of the Rothschilds despite this overwhelming wealth the family has generally cultivated an aura of invisibility although the family controls scores of industrial commercial mining and tourist corporations only a handful bear the Rothschild name by the end of the 19th century one expert estimated that the Rothschild family controlled half the wealth of the world whatever the extent of their vast wealth it is reasonable to assume that their percentage of the world's wealth has increased since then but since the turn of the century the Rothschilds have cultivated the notion that their power has somehow waned even as their wealth increases meanwhile back in Washington in 1816 just one year after Waterloo and Rothschilds alleged takeover of the Bank of England the American Congress passed a bill permitting yet another privately-owned central bank this bank was called the second bank of the United States the new banks Charter was a copy of the previous banks the US government would own 20% of the shares of the bank of course the federal share was paid by the Treasury up front into the bank's coffers then through the magic of fractional reserve lending it was transformed into loans to private investors who then bought the remaining 80% of the shares just as before the primary stockholders remained a secret but it is known that the largest block of shares about one-third of the total were sold to foreigners as one observer put it it is certainly no exaggeration to say that the second bank of the United States was rooted as deeply in Britain as it was in America so by 1816 some authors claimed the Rothschilds had taken control over the Bank of England and backed a new privately-owned central bank in America as well after 12 years of manipulations of the US economy on the part of the second bank of the u.s. the American people had had just about enough opponents of the bank nominated a dignified senator from Tennessee Andrew Jackson the hero of the Battle of New Orleans to run for president this is his home The Hermitage no one gave Jackson a chance initially the bank had long ago learned how the political process could be controlled with money to the surprise and dismay of the money changers Jackson was swept into office in 1828 Jackson was determined to kill the bank at the first opportunity and wasted no time in trying to do so but the bank's twenty-year Charter didn't come up for renewal until 1836 the last year of his second term if he could survive that long during his first term Jackson contented himself with routing out the banks many minions from government service he fired two thousand of the eleven thousand employees of the federal government in 1832 with his reelection approaching the bank's struck in early blow hoping Jackson would not want to stir up controversy they asked Congress to pass a renewal bill four years early naturally Congress complied then sent it to the president for signing but Jackson weighed in with both feet Old Hickory never a coward vetoed the bill his veto message is one of the great American documents it clearly lays out the responsibility of the American government towards its citizens rich and poor it is not our own citizens only who are to receive the bounty of our government more than 8 million zuv 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 monies and holding thousands of our citizens independence would be more formidable and dangerous than a military power of the enemy if government would confine itself to equal protection and as heaven does it's rains shower its favor alike on the high and the low the rich and the poor it would be an unqualified blessing in the act before me there seems to be a wide and unnecessary departure from these just principles later that year in July 1832 Congress was unable to override Jackson's veto now Jackson had to stand for re-election Jackson took his argument directly to the people for the first time in US history Jackson took his presidential campaign on the road before then presidential candidates stayed at home and looked presidential his campaign slogan was Jackson and no Bank the National Republican Party ran senator Henry Clay against Jackson despite the fact that the bankers poured over 3 million dollars into clays campaign Jackson was reelected by a landslide in November of 1832 despite his presidential victory Jackson knew the battle was only beginning the Hydra of corruption is only Scotch not dead said the newly elected president Jackson ordered his new Secretary of Treasury Louis McLane to start removing the government's deposits from the second bank and start placing them in state banks but McClain refused to do so Jackson fired him and appointed William J Dewayne as the new Secretary of the Treasury Dewayne also refused to comply with the president's requests and so Jackson fired him as well and then appointed Roger B Taney to the office Taney did withdraw government funds from the bank starting on October 1st 1833 Jackson was jubilant I have it chained I'm ready with screws to draw every tooth and then the stumps but the bank was not yet done fighting its head Nicholas Biddle used his influence to get the Senate to reject Taney's nomination then in a rare show of arrogance Biddle threatened to cause a depression if the bank was not retarted this worthy president thinks that because he has scalped Indians and imprisoned judges he is to have his way with the bank he is mistaken next in an unbelievable fit of honesty for a central banker Biddle admitted that the bank was going to make money scarce to force Congress to restore the bank nothing but widespread suffering will produce any effect on Congress our only safety is in pursuing a steady course of firm restriction and I have no doubt that such a course will ultimately lead to restoration of the currency and the recharter of the bank what a stunning revelation here was the pure truth revealed with shocking clarity Biddle intended to use the money contraction power of the bank to cause a massive depression until America gave in unfortunately this has happened time and time again throughout US history and is about to happen again in today's world Nicholas Biddle made good on his threat the bank sharply contracted the money supply by calling in old loans and refusing to extend new ones a financial panic ensued followed by a deep depression naturally Biddle blamed Jackson for the crash saying that it was caused by the withdrawal of federal funds from the bank unfortunately his plan worked well wages and prices sagged unemployment soared along with business bankruptcies the nation quickly went into an uproar newspaper editors blasted Jackson in editorials the bank threatened to withhold payments which then could be made directly to key politicians for their support within only months Congress assembled in what was called the panic session six months after he had withdrawn funds from the bank Jackson was officially censured by a resolution which passed the Senate by a vote of 26 to 20 it was the first time a president had ever been censured by Congress Jackson lashed out at the bank you are a den of vipers I intend to rout you out and by eternal God I will route you out America's fate teetered on a knife-edge if Congress could muster enough votes to override Jackson's veto the bank would be granted another 20-year monopoly or more over America's money time enough to consolidate its already great power then a miracle occurred the governor of Pennsylvania came out supporting President Jackson and strongly criticized the bank on top of that Biddle had been caught boasting in public about the bank's plan to crash the economy suddenly the tide shifted in April of 1834 the House of Representatives voted 134 to 82 against tree chartering the bank this was followed up by an even more lopsided vote to establish a special committee to investigate whether the bank had caused the crash when the investigating committee arrived at the Bank store in Philadelphia armed with a subpoena to examine the books Biddle refused to give them up nor would he allow inspection of correspondence with Congressman relating to their personal loans and advances he'd made to them he also refused to testify before the committee back in Washington on January 8th 1835 Jackson paid off the final installment on the national debt which had been necessitated by allowing the banks to issue currency for government bonds rather than simply issuing Treasury notes without such debt he was the only president to ever pay off the debt a few weeks later on January 30th 1835 an assassin by the name of Richard Lawrence tried to shoot President Jackson but by the grace of God both pistols misfired Lawrence was later found not guilty by reason of insanity after his release he bragged to friends that powerful people in Europe had put him up to the task and promised to protect him if he were caught the following year when its charter ran out the second bank of the United States ceased functioning as the nation's central bank Biddle was later arrested and charged with fraud he was tried and acquitted but died shortly thereafter while still tied up in civil suits after his second term as president Jackson retired here to the Hermitage outside of Nashville to live out his life he is still remembered here for his determination to kill the bank in fact he killed it so well that it took the moneychangers 77 years to undo the damage when asked what his most important accomplishment had been Jackson replied I killed the bank unfortunately even Jackson failed to grasp the entire picture and its root cause although Jackson had killed the central bank the most insidious weapon of the moneychangers fractional reserve banking remained in use by the numerous state chartered banks this fueled economic instability in the years before the Civil War still the central bankers were out and as a result America thrived as it expanded westward during this time the principal money changers struggled to regain their lost centralized power but to no avail then finally they reverted to the old central bankers formula war to create debt and dependency if they couldn't get their central bank any other way America could be brought to its knees by plunging it into a civil war just as they had done in 1812 after the first bank of the United States was not retarded one month after the inauguration of Abraham Lincoln the first shots of the American Civil War were fired here at Fort Sumter South Carolina on April 12 1861 certainly slavery was a cause for the Civil War but not the primary cause Lincoln knew that the economy of the South depended upon slavery and so before the Civil War he had no intention of eliminating it Lincoln had put it this way in his inaugural address only one month earlier I have no purpose directly or indirectly to interfere with the institution of slavery in the states where it now exists I believe I have no lawful right to do so and I have no inclination to do so even after the first shots were fired here at Fort Sumter Lincoln continued to insist that the Civil War was not about the issue of slavery my paramount objective is to save the Union and it is not either to save or destroy slavery if I could save the Union without freeing any slave I would do it so what was the civil war all about there were many factors at play northern industrialists had used protective tariffs to prevent the southern states from buying cheaper European goods Europe retaliated by stopping cotton imports from the South the southern states were in a double financial bind they were forced to pay more for most of the necessities of life while their income from cotton exports plummeted the South was angry but there were other factors at work the money changers were still stung by America's withdrawal from their control 25 years earlier since then America's Wildcat economy had made the nation rich a bad example for the rest of the world the central bankers now saw an opportunity to split the rich new nation to divide and conquer by war was this just some sort of wild conspiracy theory at the time well let's take a look at what a well-placed observer of the scene had to say at the time his name was otto von Bismarck Chancellor of Germany the man who united the German states a few years later the division of the United States into Federation's of equal force was decided long before the Civil War by the high financial powers of Europe these bankers were afraid that the United States if there remained as one block and as one nation would attain economic and financial independence which would upset their financial domination over the world within months after the first shots here at Fort Sumter the central bankers loaned Napoleon the third of France the nephew of the Waterloo Napoleon two hundred and ten million francs to seize Mexico and stationed troops along the southern border of the u.s. taking advantage of their war to violate the Monroe Doctrine and return Mexico to colonial rule no matter what the outcome of the Civil War a weakened America heavily indebted to the moneychangers would open up Central and South America once again to European colonization and domination the very thing America's Monroe Doctrine had forbade in 1823 at the same time Great Britain moved 11,000 troops into Canada and positioned them menacingly along America's northern border the British fleet went to war alert should their quick intervention be called for Lincoln knew he was in a double bind that's why he an eyes over the fate of the Union there was a lot more to it than just differences between the north and the south that's why his emphasis was always on Union and not merely the defeat of the south but Lincoln needed money to win in 1861 Lincoln and his Secretary of Treasury Solomon P chase went to New York to apply for the necessary loans the money changers anxious to see the Union fail offered loans at 24 to 36 percent interest Lincoln said thanks but no thanks and returned to Washington Lincoln sent for an old friend Colonel dick Taylor of Chicago and put him on the problem of financing the war during one meeting Lincoln asked Taylor what he discovered Taylor put it this way why Lincoln that is easy just get Congress to pass a bill authorizing the printing of full legal tender Treasury notes and pay your soldiers with them and go ahead and win your war with them also when Lincoln asked if the people of the United States would accept the notes Taylor said the people or anyone else will not have any choice in the matter if you make them full legal tender they will have the full sanction of the government and be just as good as any money as Congress has given that express right by the Constitution so that's exactly what Lincoln did in 1862 63 he printed up four hundred and fifty million dollars worth of the new bills in order to distinguish them from other banknotes in circulation he printed them in green ink on the backside that's why the notes were called greenbacks with this new money Lincoln paid the troops and bought their supplies during the course of the war nearly four hundred and fifty million dollars worth of greenbacks were printed at no interest to the federal government Lincoln understood who is really pulling the strings and what was at stake for the American people this is how he explained his rationale the government should create issue and circulate all the currency and credit needed to satisfy the spending power of the government and the buying power of consumers the privilege of creating and issuing money is not only the supreme prerogative of government but it is the government's greatest creative opportunity by the adoption of these principles the taxpayers will be saved immense sums of interest money will cease to be master and become the servant of humanity a truly incredible editorial in the London Times explained the central bankers attitude towards Lincoln's greenbacks if this mischievous financial policy which has its origins in North America shall become indurated 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 come we'll go to North America that country must be destroyed or it will destroy every monarchy on the globe the scheme was effective so effective that the next year 1863 with federal and Confederate troops beginning to mass for the decisive battle of the Civil War and the Treasury in need of further congressional authority to issue more greenbacks Lincoln allowed the bankers to push through the National Bank Act these new national banks would operate under a virtual tax-free status and collectively had the exclusive monopoly power to create the new form of money bank notes though greenbacks continued to circulate their numbers were not increased but most importantly from this point on the entire US money supply would be created out of debt by bankers buying US government bonds and issuing them for reserves for banknotes as historian John Kenneth Galbraith explained it in numerous here is following the war the federal government ran a heavy surplus it could not however pay off its debt retirement securities because to do so meant there would be no bonds to back the National banknotes to pay off the debt was to destroy the money supply later in 1863 Lincoln got some unexpected help from Czar Alexander ii of russia the Tsar like Bismarck in Germany knew what the International money changers were up to and had steadfastly refused to let them set up a central bank in Russia if America survived and was able to remain out of their clutches the czars position would remain secure if the bankers were successful at dividing America and giving the pieces back to Great Britain and France both nations under control of their central banks eventually they would threaten Russia again so the Czar gave orders that if either England or France actively intervened and gave aid to the south Russia would consider such action as a declaration of war he did the same with part of his Pacific Fleet and sent them to port in San Francisco lincoln was reelected the next year 1864 had he lived he would surely have killed the National Bank's money monopolies extracted from him during the war on November 21st 1864 he wrote a friend the following 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 shortly before Lincoln was murdered his former Secretary of Treasury salmon P chase bemoaned his role in helping secure the passage of the National Banking Act only one year earlier my agency in promoting the passage of the National Banking Act was the greatest financial mistake in my life it has built up a monopoly which affects every interest in the country on April 14th 1865 41 days after his second inauguration in just five days after Lee surrendered to grant at Appomattox Lincoln was shot by John Wilkes Booth at Ford's Theatre Bismarck Chancellor of Germany lamented the death of Abraham Lincoln the death of Lincoln was a disaster for Christendom there was no man in the United States great enough to wear his boots I fear that foreign bankers with their craftiness and torturous tricks will entirely corrupt the exuberant riches of America and use it systematically to corrupt modern civilization they will not hesitate to plunge the whole of Christendom into Wars and chaos in order that the earth should become their inheritance Bismark well understood the moneychangers plan allegations that international bankers were responsible for Lincoln's assassination surfaced in Canada 70 years later in 1934 Gerald G McGee R a popular and well-respected Canadian attorney revealed the stunning charge in a five-hour speech before the Canadian House of Commons blasting Canada's debt based money system remember it was 1934 the height of the Great Depression which was ravaging Canada as well Magee R had obtained evidence deleted from the public record provided to him by Secret Service agents at the trial of John Wilkes Booth after booths death Magee R said it showed that booth was a mercenary working for the international bankers according to an article in The Vancouver Sun of May 2nd 1934 Abraham Lincoln the murdered Emancipator of the slaves was assassinated through the machinations of a group representative of the international bankers who feared the United States president's national credit ambitions there was only one group in the world at that time who had any reason to desire the death of Lincoln they were the men opposed to his national currency program and would fought him throughout the whole Civil War on his policy of greenback currency interesting lima gear claimed that lincoln was assassinated not only because international bankers wanted to reestablish a central bank in america but because they also wanted to base america's currency on gold gold they controlled in other words put America on a gold standard Lincoln had done just the opposite by issuing us notes greenbacks which were based purely on the good faith and credit of the United States the article quoted Magee R as saying they were the men interested in the establishment of the gold standard and the right of the bankers to manage the currency and credit of every nation in the world with Lincoln out of the way they were able to proceed with that plan and did proceed with it in the united states within eight years after Lincoln's assassination silver was demonetised and the gold standard money system set up in the United States not since Lincoln has the u.s. issued debt-free United States notes these Red Seal bills which were issued in 1963 were not a new issue from President Kennedy but merely the old greenbacks reissued year after year in another act of folly and ignorance the 1994 regal Act actually authorized the replacement of Lincoln's greenbacks with debt based notes in other words greenbacks were in circulation in the United States until 1994 why was silver bad for the bankers and gold good simple because silver was plentiful in the United States it was very hard to control gold was and always has been scarce throughout history it has been relatively easy to monopolize gold but silver has historically been 15 times more plentiful with Lincoln out of the way the money changers next objective was to gain complete control over America's money this was no easy task with the opening of the American West silver had been discovered in huge quantities on top of that Lincoln's greenbacks were generally popular despite the european central bankers deliberate attacks on greenbacks they continued to circulate in the United States in fact until a few years ago according to historian W Cleon Skousen right after the Civil War there was considerable talk about reviving Lincoln's brief experiment with the constitutional monetary system had not the European money trust intervened it would have no doubt become an established institution it is clear that the concept of America printing her own debt-free money sent shockwaves throughout the European Central Bank in the lete they watched with horror as Americans clamored for more greenbacks they may have killed Lincoln but support for his monetary ideas grew on April 12th 1866 nearly one year to the day of Lincoln's assassination Congress went to work at the bidding of the European central banking interests it passed the contraction Act authorizing the secretary of the Treasury to begin to retire some of the greenbacks in circulation and thereby contract the money supply authors Theodore R Thorin and Richard F Warner explained the results of the money contraction in their classic book on the subject the truth in money book the hard times which occurred after the Civil War could have been avoided if the greenback legislation had continued as President Lincoln had intended instead there were a series of money Penix what we call recessions which put pressure on Congress to enact legislation to place the banking system under centralized control eventually the Federal Reserve Act was passed on December 23rd 1913 in other words the money changers wanted two things the reinstitution of a central bank under their exclusive control and two an american currency backed by gold their strategy was twofold first of all caused a series of panics to try to convince the American people that only centralized control of the money supply could provide economic stability and secondly remove so much money from the system that most Americans would be so desperately poor that they either wouldn't care or would be too weak to oppose the bankers in 1866 there was one point eight billion dollars in currency in circulation in the United States about 50 dollars and 46 cents per capita in 1867 alone half a billion dollars five hundred million dollars was removed from the US money supply ten years later in 1870 America's money supply was reduced to only six hundred million dollars in other words two-thirds of America's money had been called in by the bankers only $14.60 per capita remained in circulation ten years later the money supply had been reduced to only four hundred million dollars even though the population had boomed the result was that only six dollars and 67 cents per capita remained in circulation a 760 percent loss in buying power over 20 years today economists tried to sell the idea that recessions and depressions are a natural part of something they call the business cycle the truth is our money supply is manipulated now just as it was before and after the Civil War how did this happen how did money become so scarce simple bank loans were called in and no new ones were given in addition silver coins were melted down in 1872 a man named Ernest said was given a hundred thousand pounds about five hundred thousand dollars by the Bank of England and sent to America to bribe necessary congressmen to get silver demonetised he was told that if that was not sufficient to draw an additional hundred thousand pounds or as much more as was necessary the next year Congress passed the coinage act of 1873 and the minting of silver dollars abruptly stopped in fact representative Samuel Hooper who introduced the bill in the House acknowledged that Mr said actually drafted the legislation but it gets even worse than that in 1874 said himself admitted who was behind the scheme I went to America in the winter of 1872 73 authorized to secure if I could the passage of ability monetizing silver it was in the interest of those I represented the governors of the Bank of England to have it done by 1873 gold coins were the only form of coin money but the contest over control of America's money was not yet over only three years later in 1876 with one third of America's workforce unemployed the population was growing restless people were clamoring for a return to the greenback money system of President Lincoln or a return to silver money anything that would make money more plentiful that year Congress created the United States silver Commission to study the problem their report clearly blamed the monetary contraction on the national bankers the report is interesting because it compares the deliberate money contraction by the national bankers after the Civil War to the fall of the Roman Empire the disaster of the dark ages was caused by decreasing money and falling prices without money civilization could not have had a beginning and with a diminishing supply it must languish and I must relieved finally perish at the Christian era the metallic money of the roman empire amounted to 1 billion eight hundred million dollars by the end of the 15th century it had shrunk to less than 200 million dollars history records no other such disastrous transition as that from the roman empire to the dark ages despite this report by the Silver Commission Congress took no action the next year 1877 riots broke out from Pittsburgh to Chicago the torches of starving vandals lit up the sky the bankers huddled to decide what to do they decided to hang on now that they were back in control to a certain extent they were not about to give it up at the meeting of the American Bankers Association that year they urged their membership to do everything in their power to down the notion of a return to greenbacks the ABA secretary James Buhl authored a letter to the members which blatantly called on the banks to subvert not only Congress but the press it is advisable to do all in your power to sustain such prominent daily in weekly newspapers especially the agricultural and religious press as will oppose the greenback issue of paper money and that you will also withhold patronage from all applicants who are not willing to oppose the government issue of money to repeal the Act creating banknotes or to restore to circulation the government issue of money will be to provide the people with money and will therefore seriously affect our individual profits as bankers and lenders see your congressmen at once and engage him to support our interest that we may control legislation as political pressure mounted in Congress for change the press tried to turn the American people away from the truth the New York Tribune put it this way On January 10th 1878 the capital of the country is organized at last and we will see whether Congress will dare to fly in its face but it didn't work entirely on February 28 1878 Congress passed the Sherman law allowing the minting of a limited number of silver dollars ending the five-year hiatus this did not end gold backing of the currency however nor did it completely free silver previous to 1873 anyone who brought silver to the US Mint could have it struck into silver dollars free of charge no longer but at least some money began to flow back into the economy again with no further threat to their control the bankers loosened up on loans and the post-civil war depression was finally ended three years later the American people elected Republican James Garfield President Garfield understood how the economy was being manipulated as a congressman he had been chairman of the Appropriations Committee and was a member of banking and currency after his inauguration he slammed the money changers publicly in 1881 whoever controls the volume of money in any 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 unfortunately within a few weeks of making this statement on July 2nd of 1881 President Garfield was assassinated the money changers were gathering strength fast they began a periodic fleecing of the flock as they called it by creating economic booms followed by further depressions so they could buy up thousands of homes and farms for pennies on the dollar in 1891 the money changers prepared to take the American economy down again and their methods and motives were laid out with shocking clarity in a memo sent out by the American Bankers Association the ABA an organization in which most bankers were members notice that this memo called for bankers to create a depression on a certain date three years in the future according to the Congressional Record here is how it read in part on September 1st 1894 we will not renew our loans under any consideration on September 1st we will demand our money we will foreclose and become mortgagees in possession we can take 2/3 of the farms west of the Mississippi and thousands of them east of the Mississippi as well at our price then the farmers will become tenants as in England these depressions could be controlled because America was on the gold money standard since gold is scarce it's one of the easiest commodities to manipulate people wanted silver money legalized again so they could escape the stranglehold the money changers had on gold money people wanted silver money reinstated reversing mr. SEDs act of 1873 by then called the crime of 73 by 1896 the issue of more silver money had become the central issue in the presidential campaign William Jennings Bryan a senator from Nebraska ran for president as a Democrat on the free silver issue at the Democratic National Convention in Chicago he made an emotional speech which won him the nomination entitled crown of thorns and cross of gold though Bryan was only 36 years old at the time this speech is widely regarded as the most famous oration ever made before a political convention in the dramatic conclusion Bryan said we will answer their demand for a gold standard by saying to them you shall not press down upon the brow of Labor of this crown of thorns you shall not crucify mankind upon a cross of gold the bankers lavishly supported the Republican candidate William McKinley who favored the gold standard the resulting contest was amongst the most fiercely contested presidential races in American history Bryan made over 600 speeches in 27 states the McKinley campaign got manufacturers and industrialists to inform their employees that if Bryan were elected all factories and plants would close and there would be no work the ruse succeeded McKinley beat Bryan by a small margin Bryan ran for president again in 1900 and in 1908 but fell short each time during the 1912 Democratic convention Bryan was a powerful figure who helped Woodrow Wilson win the nomination when Wilson became president he appointed Bryan as Secretary of State but Bryan soon became disenchanted with the Wilson administration Brian's served only two years in the Wilson administration before resigning in 1915 over the highly suspicious sinking of the Lusitania the event which was used to drive America into World War one although William Jennings Bryan never gained the presidency his efforts delayed the moneychangers for seventeen years from attaining their next goal a new privately owned central bank for America now it was time for the moneychangers to get back to the business of a new private central bank for America during the early 1900's men like JP Morgan led the charge one final panic would be necessary to focus the nation's attention on the supposed need for a central bank the rationale was that only a central bank can be prevent bank failures Morgan was clearly the most powerful banker in America and a suspected agent for the Rothschilds Morgan had helped finance john d rockefeller Standard Oil Empire he had also helped finance the monopolies of Edward Harriman and railroads of Andrew Carnegie and steel and of others in numerous industries but on top of that JP Morgan's father Junius Morgan had been America's financial agent to the British after his father's death JP Morgan took on a British partner Edward grenfell a longtime director of the Bank of England in fact upon Morgan's death his estate contained only a few million dollars the bulk of the securities most people thought he owned were in fact owned by others in 1902 President Theodore Roosevelt allegedly went after Morgan and his friends by using the Sherman Antitrust Act to try to break up their industrial monopolies actually Roosevelt did very little to interfere in the growing monopolization of American industry by the bankers and their surrogates for example Roosevelt supposedly broke up the Standard Oil monopoly but it wasn't really broken at all it was merely divided into seven corporations all still controlled by the Rockefellers the public was aware of this thanks to political cartoonists like Thomas Nast who referred to the bankers as the money trust by 1907 the year after Teddy Roosevelt's re-election Morgan decided it was time to try for a central bank again using their combined financial muscle morgan and his friends were secretly able to crash the stock market thousands of small banks were vastly overextended some had reserves of less than 1% thanks to the fractional reserve principle within days bank runs were commonplace across the nation now Morgan stepped into the public arena and offered to prop up the faltering American economy by supporting failing banks with money he manufactured out of nothing it was an outrageous proposal far worse than even fractional reserve banking but Congress let him do it Morgan manufactured 200 million dollars worth of this completely reserve less private money and bought things with it paid for services with it and sent some of it to his branch banks to lend out at interest his plan worked soon the public regained confidence and money in general and quit hoarding their currency but as a result banking power was further consolidated into the hands of a few large banks by 1908 the panic was over and Morgan was hailed as a hero by the President of Princeton University a man by the name of Woodrow Wilson all this trouble could be averted if we appointed a committee of six or seven public spirited men like JP Morgan to handle the affairs of our country economics textbooks would later explain that the creation of the Federal Reserve System was the direct result of the panic of 1907 quote with it's alarming epidemic of bank failures the country was fed up once and for all with the anarchy of unstable private banking close quote but Minnesota congressman Charles a Lindbergh senior the father of the famous aviator lucky Lindy later explained that the panic of 1907 was really just a scam those not favorable to the money trust could be squeezed out of business and the people frightened into demanding changes in the banking and currency laws which the money trust would bring so since the passage of the National Bank Act of 1863 the money changers had been able to create a series of booms and busts the purpose was not only to fleece the American public of their property but to later claim that the banking system was basically so unstable that it had to be consolidated into a central bank once again after the crash Teddy Roosevelt in response to the panic of 1907 signed into law a bill creating something called the National monetary Commission the Commission was to study the banking problem and make recommendations to Congress of course the Commission was packed with Morgan's friends and cronies the Chairman was a man named senator Nelson Aldrich from Rhode Island Aldrich represented the Newport Rhode Island homes of America's richest banking families his daughter married john d rockefeller jr. and together they had five sons John Nelson who would become vice president in 1974 Lawrence Winthrop and David the head of the Council on Foreign Relations and former chairman of Chase Manhattan Bank as soon as the National monetary Commission was set up senator Aldrich immediately embarked on a two-year tour of Europe where he consulted at length with the private central bankers in England France and Germany the total cost of his trip alone to the taxpayers was $300,000 an astronomical sum in those days shortly after his return on the evening of November 22nd 1910 some of the wealthiest and most powerful men in America boarded senator Aldridge's private rail car and in the strictest secrecy journey to this place Jekyll Island off the coast of Georgia with the group came Paul Warburg Warburg had been given a $500,000 per year salary to Bobbe for the passage of a privately-owned central bank in America by the investment firm Kuhn Loeb & Company Warburg's partner in this firm was a man named Jacob Schiff the grandson of the man who shared the green shield house with the Rothschild family in Frankfurt Schiff as we'll find out later was in the process of spending twenty million dollars to finance the overthrow of the Tsar in Russia these three European banking families the Rothchilds the Warburg's and the ships were interconnected by marriage down through the years just as their American banking counterparts the Morgans Rockefellers and Aldridge's were secrecy was so tight that all seven primary participants were cautioned to use only first names to prevent servants from learning their identities years later one participant Frank Vanderlip president of National City Bank of New York and a representative of the Rockefeller family confirmed the Jekyll Island trip in a February 9 1935 edition of The Saturday Evening Post I was a secretive indeed as furtive as any conspirator discovery we knew simply must not happen or else all our time and effort would be wasted if it were to be exposed at our particular group had got together and written a banking bill that bill would have no chance whatever a passage by Congress the participants came here to figure out how to solve their major problem how to bring back a privately-owned central bank but there were other problems that needed to be addressed as well first of all the market share of the big national banks was shrinking fast in the first ten years of the century the number of US banks had more than doubled to over 20,000 by 1913 only 29 percent of all banks were national banks and they held only 57% of all deposits as senator Aldrich later admitted in a magazine article before passage of this act the New York bankers could only dominate the reserves of New York now we are able to dominate the bank reserves of the entire country therefore something had to be done to bring these new banks under their control as john d rockefeller put it quote competition is sin close quote secondly the nation's economy was so strong that corporations were starting to finance their expansions out of profits instead of taking out huge loans from large banks in the first 10 years of the new century 70% of corporate funding came from profits in other words American industry was becoming independent of the money changers and that trend had to be stopped all the participants knew that these problems could be hammered out into a workable solution but perhaps their biggest problem was a public relations problem the name of the new bank that discussion took place right here in this room one of the many conference rooms in this sprawling hotel today known as the Jekyll Island Club hotel Aldrich believed that the word Bank should not even appear in the name Warburg wanted to call the legislation the National Reserve bill or the Federal Reserve bill the idea here was to give the impression that the purpose of the new central bank was to stop bank runs but also to conceal its monopoly character however it was Aldrich the egotistical politician who insisted it be called the Aldrich bill after nine days at Jekyll Island the group dispersed the new central bank would be very similar to the old Bank of the United States it would be given a monopoly over US currency and create that money out of nothing how does the Fed create money out of nothing it's a four-step process but first a word on bonds bonds are simply promises to pay or government IOUs people buy bonds to get a secure rate of interest at the end of the term of the bond the government repays a bond plus interest and the bond is destroyed there are about three point six trillion dollars worth of these loans or bonds at present now here's the Fed money making process step 1 the Federal Open Market Committee approves the purchase of US bonds on the open market step 2 the bonds are purchased by the Fed from whoever is offering them for sale on the open market step 3 the Fed pays for the bonds with electronic credits to the sellers bank which in turn credits the sellers bank account the trick is that these credits are based on nothing the Fed just creates them step 4 the banks use these deposits as reserves they can loan out over ten times the amount of their reserves to new borrowers all at interest in this way a Fed purchase of say a million dollars worth of bonds gets turned into over ten million dollars in bank accounts the Fed in effect creates ten percent of this totally new money and the banks create the other 90% to reduce the amount of money in the economy the process is just reversed the Fed sells bonds to the public and the money flows out of the purchasers local bank loans must be reduced by ten times the amount of the sale so a Fed sale of a million dollars in bonds results in 10 million dollars less money in the economy so how does this benefit the bankers whose representatives huddled at Jekyll Island first it totally misdirected banking reform efforts from proper solutions second it prevented a proper debt-free system of government finance like Lincoln's greenbacks from making a comeback the bond based system of government financed forced on Lincoln after he created greenbacks was now cast in stone third it delegated to the bankers the right to create 90% of our money supply based on only fractional reserves which they then loan out at interest fourth its centralized overall control of our nation's money supply in the hands of a few men fifth it established a central bank with a high degree of independence from effective political control soon after its creation the feds great contraction in the early 1930s would cause the Great Depression this independence has been enhanced since then through additional laws in order to fool the public into thinking the government retained control the plan called for the Fed to be run by a Board of Governors appointed by the President and approved by the Senate but all the bankers had to do was to be sure their men got appointed to the Board of Governors that wasn't hard bankers have money and money buys influence over politicians once the participants left Jekyll Island the public relations blitz was on the big New York banks put together an educational fund of five million dollars to finance professors at respected universities to endorse the new bank Woodrow Wilson at Princeton was one of the first to jump on the bandwagon but the bankers subterfuge didn't work the Aldrich bill was quickly identified as the bankers bill a bill to benefit only what became known as the money trust as congressman Lindbergh put it during the congressional debate the old rich plan is the wall street plan it means another panic if necessary to intimidate the people Aldrich paid by the government to represent the people proposes a plan for the Trust's instead seen they didn't have the votes to win in Congress the Republican leadership never brought the Aldrich bill to a vote the bankers quietly decided to move to track to the Democratic alternative they begin financing Woodrow Wilson as the Democratic nominee as respected historian James Perloff put it Wall Street financier Bernard Baruch was put in charge of Wilson's education Farook brought Wilson to the Democratic Party headquarters in New York in 1912 leading him like one would a poodle on a string Wilson received an indoctrination course from the leaders convene there so now the stage was set the moneychangers were poised to install their privately-owned central bank once again the damaged President Andrew Jackson had done 76 years earlier had been only partly repaired with the passage of the National Bank Act during the Civil War since then the battle had raged on across the decades the Jacksonians became the Greene backers who became the hardcore supporters of William Jennings Bryan with Bryan leading the charge these opponents of the moneychangers ignorant of burr Oaks tutelage now threw themselves behind Democrat Woodrow Wilson they and Bryan would soon be betrayed during the presidential campaign the Democrats were careful to pretend to oppose the Aldrich bill as representative Louis McFadden himself a Democrat as well as chairman of the House banking and currency committee explained it 20 years after the fact the Aldrich bill was condemned in the platform when Woodrow Wilson was nominated the man who ruled the Democratic Party promised the people that if they were returned to power there would be no central bank established here while they held the reins of government 13 months later that promise was broken and the Wilson administration under the tutelage of those sinister Wall Street figures who stood behind colonel house established here in our free country the worm-eaten monarchical institution of the Kings bank to control us from the top downward and to shackle us from the cradle to the grave once Wilson was elected Morgan Warburg Beru and company advanced a new plan which Warburg named the Federal Reserve System the Democratic leadership hailed the new bill called the glass Owen bill as something radically different from the Aldrich bill but in fact the bill was virtually identical in every important detail in fact so vehement were the Democratic denials of similarity that Paul Warburg the father of both bills had to step in to reassure his paid friends and Congress that the two bills were virtually identical brushing aside the external differences affecting the shells we find the kernels of the two systems very closely resembling and related to one another but that admission was for private consumption only publicly the money trust trotted out senator Aldrich and Frank Vanderlip the president of Rockefellers National City Bank of New York and one of the Jekyll Island seven to oppose the new Federal Reserve System years later however Vanderlip admitted in The Saturday Evening Post that the two measures were virtually identical although the Aldrich Federal Reserve plan was defeated when it bore the name Aldrich nevertheless it's essential points were all contained in the plan that finally was adopted as Congress near to vote they called Ohio Attorney Alfred Crozier to testify Crozier noted the similarities between the Aldrich bill and the glass owen bill the bill grants just what Wall Street and the big banks for 25 years have been striving for private instead of public control of currency it the glass--oh and Bill does this as completely as the Aldrich bill both measures robbed the government and the people of all effective control over the public's money invest in the banks exclusively the dangerous power to make money among the people scarce or plenty during the debate on the measure senators complained that the big banks were using their financial muscle to influence the outcome there are bankers in this country who are enemies of the public welfare said one senator who what an understatement despite the charges of deceit and corruption the bill was finally snuck through the Senate on December 22nd 1913 after most senators had left town for the holidays after having been assured by the leadership that nothing would be done until long after the Christmas recess on the day the bill was passed congressman Lindbergh prophetically warned his countrymen that 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 worst legislative crime of the ages is perpetrated by this banking bill on top of all this only weeks earlier Congress had finally passed a bill legalizing income tax why was the income tax law important because bankers finally had in place a system which would run up a virtually unlimited federal debt how would the interest on this debt be repaid never mind the principle remember a privately-owned central bank creates the principle out of nothing the federal government was small then up to then it had subsisted merely on tariffs and excise taxes No just as with the Bank of England the interest payments had to be guaranteed by direct taxation of the people the money changers knew that if they had to rely on contributions from the states eventually the individual state legislators would revolt and either refused to pay the interest on their own money or at least bring political pressure to bear to keep the debt small it is interesting to note that in 1895 the Supreme Court had found a similar income tax law to be unconstitutional the Supreme Court even found a corporate income tax law unconstitutional in 1909 as a result senator Aldrich hustled a bill for a constitutional amendment allowing income tax through the Congress the proposed sixteenth amendment to the Constitution was then sent to the state legislatures for approval but some critics claim that the 16th amendment was never ratified by the necessary three-quarters of the states in other words the sixteenth amendment may not be legal but the moneychangers were in no mood to debate the fine points by october of 1913 senator Aldrich had hustled the income tax bill through Congress without the power to tax the people directly and bypass the states the federal reserve bill would be far less useful to those who wanted to drive America deeply into their debt a year after the passage of the Federal Reserve bill congressman Lindbergh explained how the Fed created but we have come to call the business cycle and how they use it to their advantage to cause high prices all the Federal Reserve Board will do will be to lower the rediscount rate producing an expansion of credit and a rising stock market then when businessmen are adjusted to these conditions it can check prosperity and mid-career by arbitrarily raising the rate of interest it can cause depending on of a rising and falling market to swing gently back and forth by slight changes in the discount rate or cause violent fluctuations by a greater rate variation and in either case it will possess insight information as to financial conditions and advanced knowledge of the coming change either up or down this is the strangest most dangerous advantage ever placed in the hands of a special privileged class by any government that ever existed the system is private conducted for the sole purpose of obtaining the greatest possible profits from the use of other people's money they know in advance when to create panics to their advantage they also know when to stop panic inflation and deflation work equally well for them when they control finance congressman Lindbergh was correct on all points what he didn't real was that most European nations had already fallen prey to the central bankers decades or centuries earlier but he also mentions the interesting fact that only one year later the Fed had cornered the market in gold this is how he put it quote already the Federal Reserve banks have cornered the gold and gold certificates close quote but congressman Lindbergh was not the only critic of the Fed congressman Louis McFadden the chairman of the House banking and currency committee from 1920 to 1931 remarked that the Federal Reserve Act brought about a super state controlled by international bankers in international industrialists acting together to enslave the world for their own pleasure notice how McFadden saw the International character of the stockholders of the Federal Reserve another chairman of the House banking and currency committee in the 1960s Wright Patman from Texas put it this way in the United States today we have in effect two governments we have the duly constituted government then we have an independent uncontrolled and uncoordinated government in the Federal Reserve System operating the money powers which are reserved to Congress by the Constitution even the inventor of the electric light Thomas Edison joined the fray in criticizing the system of the Federal Reserve if our nation can issue a dollar bond it can issue a dollar bill the element that makes the bond good makes the bill good also the difference between the bond and the bill is the bond lets money brokers collect twice the amount of the bond and an additional 20% whereas the currency pays nobody but those who contribute directly in some useful way it is absurd to say that our country can issue 30 million dollars in bonds and not 30 million dollars in currency both are promises to pay but one promise patents the users and the other helps the people three years after the passage of the Federal Reserve Act even President Wilson began to have second thoughts about what had been unleashed during his first term in office we have come to be one of the worst ruled one of the most completely controlled governments in the civilized world no longer a government of free opinion no longer a government by a vote of the majority but a government by the opinion and arrests of a small group of dominant men some of the biggest men in the United States in the field of Commerce and manufacture are afraid of something they know that there is a power somewhere so organized so subtle so watchful so interlocked so complete so pervasive that they had better not speak above their breath when they speak in condemnation of it before his death in 1924 President Wilson realized the full extent of the damage he had done to America when he confessed I have unwittingly ruined my government so finally the money changers those who profit by manipulating the amount of money in circulation had their privately-owned central bank installed again in America the major newspapers which they also owned hailed passage of the Federal Reserve Act of 1913 telling the public that now depressions could be scientifically prevented the fact of the matter was that now depressions could be scientifically created power was now centralized to a tremendous extent now it was time for a war a really big war in fact the First World War of course - the central bankers the political issues of war don't matter nearly as much as the profit potential and nothing creates debts like warfare England was the best example at that time during the 119 year period between the founding of the Bank of England and Napoleon's defeat at Waterloo England had been at war 56 years and much of the remaining time she'd been preparing for war in World War one the German Rothschilds loaned money to the Germans the British Rothschilds loaned money to the British and the French Rothschilds loaned money to the French in America JPMorgan was the sales agent for war materials to both the British and the French in fact six months into the war Morgan became the largest consumer on earth spending ten million dollars a day his offices here at 23 Wall Street were mobbed by brokers and salesmen trying to cut a deal in fact it got so bad that the bank had to post guards at every door and at the partners homes as well many other New York bankers made out as well from the war President Wilson appointed Bernard Baruch to head the war industries board according to historian James Perloff both Baruch and the Rockefellers profited by some 200 million dollars during the war but profits were not the only motive there was also revenge the money changers never forgave the Czar's for their support of Lincoln during the Civil War also Russia was the last major European nation to refuse to give in to the privately owned central bank scheme three years after World War one broke out the Russian Revolution toppled the Czar and installed the scourge of communism Jacob Schiff of Kuhn Loeb & Company bragged from his deathbed that he had spent 20 million dollars towards the defeat of the Tsar money was funneled from England to support the revolution as well why would some of the richest men in the world financially back communism the system that was openly vowing to destroy the so-called capitalism that made them wealthy researcher Gary Allen explained it this way if one understands that socialism is not a share of the wealth program but is in reality a method to consolidate and control the wealth in the seeming paradox of super rich men promoting socialism becomes no paradox at all instead it becomes logical even the perfect tool of power seeking megalomaniacs communism or more accurately socialism is not a movement of the downtrodden masses but of the economic elite as W Kleon Skousen put it in his 1970 book the naked capitalists power from any source tends to create an appetite for additional power it was almost inevitable that the super-rich would one day aspire to control not only their own wealth but the wealth of the whole world to achieve this they were perfectly willing to feed the ambitions of the power-hungry political conspirators who were committed to the overthrow of all existing governments and the establishments of a simple worldwide dictatorship but what if these revolutionaries get out of control and try to seize power from the super-rich after all it was mouths a tongue who in 1938 stated his position concerning power political power grows out of the barrel of a gun The Wall Street London axis elected to take the risk the master planners attempted to control revolutionary communist groups by feeding them vast quantities of money when they obeyed and contracting their money supply or even financing their opposition if they got out of control Lenin began to understand that although he was the absolute dictator of the new Soviet Union he was not pulling the financial strings someone else was silently in control the state does not function as we desired the car does not obey a man is at the wheel and seems delete it but the car does not drive in the desired direction it moves as another force wishes behind it representative Lewis T McFadden the chairman of the House banking and currency committee throughout the 1920s and into the Great Depression years of the 1930s explained it this way the course of Russian history has indeed been greatly affected by the operations of international bankers the Soviet government has been given United States Treasury funds by the Federal Reserve Board acting through the Chase Bank England has drawn money from us through the Federal Reserve Banks and has relented at high rates of interest to the Soviet government the Danube satori dam was built with funds unlawfully taken from the United States Treasury by the corrupt and dishonest Federal Reserve Board and the Federal Reserve Banks in other words the Fed and the Bank of England at the behest of the international bankers who controlled them were creating a monster one which would fuel seven decades of unprecedented Communist revolution warfare and most importantly debt in case you think there's some chance that the money changers got communism going and then lost control in 1992 The Washington Times reported that Russian president Boris Yeltsin was upset that most of the incoming foreign aid was being siphoned off quote straight back into the coffers of Western banks in debt service close quote no one in his right mind would claim that a war as large as World War one had a single cause wars are complex things with many causative factors but on the other hand it would also be equally foolish to ignore as a prime cause of World War one those who would profit the most from the war the role of the money changers is no wild conspiracy theory they had a motive a short-ranged self-serving motive as well as a long-range political motive of advancing totalitarian government's with the money changers maintaining the financial clout to control whatever politician might emerge as the leader next we'll see what the moneychangers ultimate political goal is for the world shortly after World War one the overall political agenda of the moneychangers began to be clear now that they controlled national economies individually the next step was the ultimate form of consolidation world government the new world government proposal was given top priority at the Paris Peace Conference after World War one it was called the League of Nations but much to the surprise of Paul Warburg in Bernard Peru who attended the peace conference with President Wilson the world was not yet ready to dissolve national boundaries nationalism still beat strong into human breast for example Lord Curzon the British Foreign Secretary called the League of Nations a good joke even though it was the stated policy of the British government to support it to the humiliation of President Wilson the US Congress wouldn't ratify the league either despite the fact that it had been ratified by many other nations without money flowing from the US Treasury the league died after World War one the American public had grown tired of the internationalist policies of Democrat Woodrow Wilson in the presidential election of 1920 Republican Warren Harding won a landslide victory with over 60 percent of the vote Harding was an ardent foe of both Bolshevism and the League of Nations his election which opened a 12 year run of Republican presidents in the White House led to an unprecedented era of prosperity known as the Roaring Twenties despite the fact that the war had brought America a debt ten times larger than its civil war debt still the American economy surged gold had poured into the country during the war and it continued to do so afterwards in the early 1920s the governor of this Bank the Federal Reserve Bank of New York a man named Benjamin strong met frequently with the secretive and eccentric governor of the Bank of England Montague Norman Norman was determined to replace the gold England had lost to the US during World War one and returned the Bank of England to its former position of dominance in world finance on top of that rich with gold the American economy might get out of control again just like it had done after the Civil War during the next eight years under the presidencies of Harding and Coolidge the huge federal debt built up during World War one was cut by 38 percent down to 16 billion dollars the greatest percentage drop in US history during the election of 1920 Warren Harding and Calvin Coolidge ran against James Cox the governor of Ohio and the little-known Franklin D Roosevelt who had previously risen to no higher post than President Wilson's assistant secretary of the Navy after his inauguration party moved quickly to formally kill the League of Nations then he quickly moved to reduce domestic taxes while raising tariffs to record Heights now this was a revenue policy of which most of the founding fathers would certainly have approved his second year in office Harding took ill on a train trip in the West and suddenly died although no autopsy was performed the cause was said to be either pneumonia or food poisoning when Coolidge took over he continued Harding's domestic economic policy of high tariffs on imports while cutting income taxes as a result the economy grew at such a rate that net revenue still increase now that had to be stopped so just as they done so frequently before the money changers decided it was time to crash the American economy the Federal Reserve began flooding the country with money they increased the money supply by 62% during these years money was plentiful this is why it was known as the Roaring Twenties before his death in 1919 former President Teddy Roosevelt warned the American people what was going on as reported in the March 27th 1922 edition of the New York Times Roosevelt said these international bankers and Rockefeller Standard Oil interests control the majority of newspapers and the columns of these papers to club into submission or drive out of public office officials who refused to do the bidding of the powerful corrupt clicks which compose the invisible government just one day before in the New York Times the mayor of New York John Hyland quoted Roosevelt and blasted those he saw as taking control of America its political machinery and its press the warning of Theodore Roosevelt has much timeliness today for the real menace of our republic is this invisible government which like a giant octopus sprawls at slimy lengths over city state and nation it seizes in its long and powerful tentacles our executive officers our legislative bodies our schools our courts our newspapers and every agency created for the public protection to depart from mere generalizations let me say that at the head of this octopus are the Rockefeller Standard Oil interest and a small group of powerful banking houses generally referred to as the international bankers the little coterie of powerful international bankers virtually run the United States government for their own selfish purposes they practically control both parties right political platforms make cat's-paws of party leaders use the leading men of private organizations and resort to every device to place a nomination for high public office only such candidates as will be amenable to the dictates of corrupt big business these international bankers and Rockefeller Standard Oil interests control the majority of newspapers and magazines in this country why didn't people listen to such strong warnings and demand that Congress reverse it's 1913 passage of the Federal Reserve Act because remember it was the 1920s a steady increase in bank loans contributed to a rising market in other words just as it is today in times of prosperity no one wants to worry about economic issues but there is a dark side to all this prosperity business is expanded and became strung out on credit speculation in the booming stock market became rampant although everything looked rosy it was a castle made of sand when all was in readiness in April of 1929 Paul Warburg the father of the Federal Reserve sent out a secret advisory warning his friends that he collapse a nationwide depression was certain in August of 1929 the Fed began to tighten money it is not a coincidence that the biographies of all the Wall Street Giants of that era john d rockefeller JP morgan Bernard Baruch etc all marveled that they got out of the stock market just before the crash and put all their assets in cash or gold on October 24th 1929 the big New York bankers called in their 24-hour broker call loans this meant that both stockbrokers and customers had to dump their stocks on the market to cover their loans no matter what price they had to sell them for as a result the market tumbled and that day was known as Black Thursday according to John Kenneth Galbraith riding in the great crash 1929 at the height of the selling frenzy Bernard Baruch brought Winston Churchill into the visitors gallery of the New York Stock Exchange here to witness the panic and impress him with his power over the wild events down on the floor congressman Louis McFadden chairman of the House Committee on banking and currency from 1920 to 1931 knew who to blame he accused the Fed and the international bankers of orchestrating the crash it was not accidental it was a carefully contrived occurrence the international bankers sought to bring about a condition of the spare here so that they might emerge as rulers of us all but McFadden went even farther he openly accused them of causing the crash in order to steal America's gold in February 1931 in the midst of the depression he put it this way I think it can hardly be disputed that the Statesman and Finance ears of Europe are ready to take almost any means to reacquire rapidly the gold stock which Europe lost to American as the result of World War one Curtis dall a broker for Lehman Brothers was on the floor of the New York Stock Exchange the day of the crash in his 1970 book FDR my exploited father-in-law he explained that the crash was triggered by the planned sudden shortage of call money in the New York money market actually it was the calculated shearing of the public by the world money powers triggered by the planned sudden shortage of coal money in the New York money market within a few weeks three billion dollars of wealth simply seemed to vanish within a year 40 billion dollars had been lost but did it really disappear or was it simply consolidated in fewer hands and what did the Federal Reserve do instead of moving to help the economy out by quickly lowering interest rates to stimulate the economy the Fed continued to brutally contract the money supply further deepening the depression between 1929 and 1933 the Fed reduced the money supply by an additional 33 percent although most Americans have never heard that the Fed was the cause of the depression this is well known among top economists Milton Friedman the Nobel prize-winning economist now of Stanford University said the same thing in a national public radio interview in January of 1996 the Federal Reserve definitely caused the Great Depression by contracting the amount of currency in circulation by 1/3 from 1929 to 1933 but the money lost by most Americans during the Depression didn't just vanish it was just redistributed into the hands of those who had gotten out just before the crash and had purchased gold which is always a safe place to put your money just before a depression but America's money also went overseas incredibly as President Hoover was heroically trying to rescue banks and prop up businesses with millions of Americans starving as the Great Depression deepened millions of dollars were being spent rebuilding Germany from damage sustained during World War one 8 years before Hitler would invade Poland representative Louis McFadden chairman of the House banking and currency committee warned Congress that Americans were paying for Hitler's rise to power after World War one Germany fell into the hands of the German international bankers those bankers bought her and they now own her lock stock and barrel they have purchased her industries they have mortgages on her soil they control her production they control all her public utilities the international German bankers have subsidized the present government of Germany and they have also supplied every dollar of the money Adolph Hitler has used in his lavish campaign to build up a threat to the government of Bruning when Bruning fails to obey the orders of the german international bankers Hitler has brought forth to scare the Germans into submission through the Federal Reserve Board over 30 billions of dollars of American money has been pumped into Germany you've all heard of the spending that's taken place in Germany modernistic dwellings her great planetariums her gymnasiums her swimming pools her fine public highways her perfect factories all this was done on our money all this was given to Germany through the Federal Reserve Board the Federal Reserve Board has pumped so many billions of dollars into Germany that they dare not name the total Franklin D Roosevelt was swept into office during the 1932 presidential election once Roosevelt was in office however sweeping emergency banking measures were immediately announced which did nothing but increase the feds power over the money supply then and only then did the Fed finally begin to loosen the purse strings and feed new money out to the starving American people at first Roosevelt railed against the money changers as being the cause of the depression believe it or not this is what he said on March 4th 1933 in his inaugural address practices of the unscrupulous money changers stand indicted in the court of public opinion rejected by the hearts and minds of men the money changers have fled from their high seats in the temple of our civilization but two days later Roosevelt declared a bank holiday and closed all banks later that year Roosevelt outlawed private ownership of all gold bullion and all gold coins with the exception of rare coins most of the gold in the hands of the average American was in the form of gold coins the new decree was in effect a confiscation those who didn't comply risk as much as ten years in prison and a $10,000 fine the equivalent of a hundred thousand dollars today out in small-town America some people didn't trust Roosevelt's order many were torn between keeping their hard-earned wealth or obeying the government those who did turn in their gold were paid the official price for it 20 dollars and 66 cents per ounce so unpopular was the confiscation order that no one anywhere in government would take credit for authoring it no congressman claimed it at the signing ceremony President Roosevelt made it clear to all present that he was not the author of it and publicly stated that he had not ever read it even a secretary of the Treasury said he'd never read it either saying it was quote what the experts wanted Roosevelt convinced the public to give up their gold by saying that pooling the nation's resources was necessary to get America out of the depression with great fanfare he ordered a new bullion depository built to hold the mountain of gold the US government was illegally confiscating by 1936 the u.s. bullion depository at Fort Knox was completed and in January 1937 the gold began to flow into it the ripoff of the ages was about to proceed in 1935 once the gold had all been turned in the official price of gold was suddenly raised to $35 per ounce but the catch was only foreigners could sell their gold at the new higher price the money changers who had heeded Warburg's note and gotten out of the stock market just before the crash and bought gold at twenty dollars and 66 cents per ounce then shipped it to London could now bring it back and sell it back to the government nearly doubling their money while the average American starved the Fort Knox bullion depository sits here in the middle of the Fort Knox Military Reservation 30 miles southwest of Louisville Kentucky this was as close as we were permitted to get to the depository despite years of letters from members of Congress to allow our film crew inside the four acre grounds immediately surrounding the building our garden line electrified steel fence an open moat and four machine gun armed guard pillboxes at the structures corners when the gold began arriving On January 13 1937 there was unprecedented security thousands of official guests watched the arrival of a nine car train from Philadelphia guarded by our soldiers postal inspectors Secret Service men and guards from the US Mint it was all great theater America's gold supply from across the land had been pooled supposedly for the public benefit and then safely tucked into Fort Knox but all that security would soon be breached by the government itself now the stage was set for a really big war one which would pile up debt far beyond that of World War one for example in 1944 alone the u.s. national income was only one hundred eighty three billion dollars yet 103 billion was spent on the war this was 30 times the spending rate during World War one in fact the American taxpayer picked up 55% of the total allied cost of the war but equally important virtually every nation involved in World War two greatly multiplied their debt in the u.s. for example federal debt went from forty three billion in 1940 up to 257 billion in 1950 an increase of five hundred ninety eight percent between 1940 and 1950 Japanese debt swelled 1348 percent French debt grew 583 percent and Canadian debt soared 417 percent after the war the world was now divided into two economic camps communist command economies on the one hand versus monopoly capitalists on the other set to fight it out in one perpetual and highly profitable arms race it was finally time for the central bankers to embark in earnest on their three-step plan to centralize the economic systems of the entire world and finally bring about their global government or New World Order the phases of this plan were step one central bank domination of national economies worldwide step two centralize regional economies through organizations such as the European monetary union and regional trade unions such as NAFTA step 3 centralize the world economy a world Central Bank a world money and ending national independence through abolition of all tariffs by treaties like Gantt step 1 was completed long ago steps 2 & 3 are far advanced nearing completion what about gold among central banks the largest holder of gold is now the IMF it and central banks now controlled two-thirds of the world's gold supply giving them the ability to manipulate the gold market remember the money changers Golden Rule he who has the gold makes the rules but before we get into solutions to our problem let's take a look at what happened to all that gold in Fort Knox because if we don't understand that the gold has been stolen we'll allow ourselves to be stampeded into the wrong solution a gold-backed currency most Americans still believe that the gold is still here at Fort Knox at the end of World War two Fort Knox contained over 700 million ounces of gold an incredible 70 percent of all the gold in the world how much remains no one knows despite the fact that federal law requires an annual physical audit of Fort Knox gold the Treasury has consistently refused to conduct one the truth is that a reliable audit of whatever remains here has not been conducted since President Eisenhower ordered one in 1953 where did America's gold in Fort Knox go over the years it was sold off to European money changers at the $35 per ounce price remember this was during a time when it was illegal for Americans to buy any of their own gold from Fort Knox in fact there was a very infamous case where the Firestone family set up a string of dummy corporations to purchase Fort Knox gold and keep it in Switzerland never hitting us Shores they were eventually caught however and successfully prosecuted finally by 1971 all the pure gold had been secretly removed from Fort Knox drained back to lon once the gold was gone from Fort Knox President Nixon closed the gold window by repealing Roosevelt's gold reserve Act of 1934 finally making it legal once again for Americans to buy gold naturally gold prices immediately began to soar nine years later gold sold for eight hundred and eighty dollars per ounce 25 times what the gold in Fort Knox was sold for one would think that eventually someone in the government would get wind of what was happening and blow the whistle the largest fortune in the history of the world stolen shades of the old James Bond film Goldfinger well as a matter of fact Ian Fleming the author of the James Bond series was head of the British counterintelligence service mi5 some believe in the intelligence community that he wrote much of his fiction as a warning as many authors of fiction do if the removal of all the good delivery gold from Fort Knox can be viewed as a deliberate raid on the US Treasury than such an operation might well have been years in the making namely 40 years certainly enough time for Fleming to get wind of it and try to prevent it so just how did the story of the Fort Knox gold robbery get out it all started with an article in a New York periodical in 1974 the article charged that the Rockefeller family was manipulating the Federal Reserve to sell-off Fort Knox gold at bargain basement prices two anonymous European speculators three days later the anonymous source of the story Louise Auchincloss Boyer mysteriously fell to her death from the window of her 10th floor apartment in New York Howard mrs. Boyer have known of the Rockefeller connection to the Fort Knox gold heist she was the longtime secretary of Nelson Rockefeller for the next fourteen years this man ed Durell a wealthy Ohio industrialist devoted himself to a quest for the truth concerning the Fort Knox gold he wrote thousands of letters to over 1,000 government and banking officials trying to find out how much gold was really left and where the rest of it had gone Edith Roosevelt the granddaughter of President Teddy Roosevelt questioned the actions of the government in a March 1975 edition of the New Hampshire Sunday News allegations of missing gold from our Fort Knox vaults are being widely discussed in European financial circles but what is puzzling is that the administration is not hastening to demonstrate conclusively that there is no cause for concern over our gold treasure if indeed it is in a position to do so unfortunately ed Durell never did accomplish his primary goal a full audit of the gold reserves and Fort Knox it's incredible that the world's greatest treasure has had little accounting or auditing this goal belonged to the American people not the Federal Reserve and their foreign owners one thing is certain the government could blow all of this speculation away in a few days with a well publicized audit under the searing lights of media cameras it is chosen not to do so one must conclude that they are afraid of the truth such an audit would reveal what is the government so afraid of here's the answer when President Ronald Reagan took office in 1981 his conservative friends urged him to study the feasibility of returning to a gold standard as the only way to curb government spending it sounded like a reasonable alternative so President Reagan appointed a group of men called the gold Commission to study the situation and report back to Congress what Reagan's gold Commission reported back to Congress in 1982 was the following shocking revelation concerning gold the US Treasury owned no gold at all all the golde that was left in Fort Knox was now owned by the Federal Reserve a group of private bankers as collateral against the national debt the truth of the matter is that never before has so much money been stolen from the hands of the general public and put into the hands of a small group of private investors the money changers I'm standing in front of the headquarters of the International Monetary Fund located in Washington DC across the street right over there is the headquarters of the World Bank what are these organizations and who controls them and most importantly are they about to create a huge worldwide depression let us step back in time for a moment to the aftermath of world war 1 people were tired of war so under the guise of peacemaking the international bankers devised a plan to consolidate power even further claiming only an international government would stem the tide of world wars the money changers pushed forward a proposal for world government which stood on three legs a world central bank to be called the Bank of International Settlements a world judiciary to be called the World Court located in the hague the netherlands and a world executive and legislature to be called the League of Nations as President Clinton's mentor Georgetown historian Carroll Quigley wrote in his 1966 book tragedy and hope the powers of financial capitalism had a far-reaching plan nothing less than to create a world system of financial control in private hands able to dominate the political system of each country and the economy of the world as a whole this system was to be controlled in a feudalist ik fashion by the central banks of the world acting in concert by secret agreements arrived at infrequent meetings and conferences the apex of the system was to be the bank for international settlements in bail Switzerland a private bank owned and controlled by the world central banks which were themselves private corporations each central bank sought to dominate its government by its ability to control Treasury loans to manipulate foreign exchanges to influence the level of economic activity in the country and to influence cooperative politicians by subsequent economic rewards in the business world despite intense pressure from the international bankers and the press a handful of US senators led by Senator Henry Cabot Lodge kept the u.s. out of these schemes without u.s. participation the league was doomed incredibly even though the u.s. rejected the world's central bank the BIS the New York Federal Reserve ignored its government and arrogantly sent representatives to Switzerland to participate in the central bankers meeting right up until 1994 when the US was finally officially dragged into it their world government schemes thwarted the bankers resorted to the old formula another war to wear down the resistance to world government while reaping handsome profits to this end Wall Street helped resurrect Germany through the thisin banks which were affiliated with the Harriman interest in New York just as the Chase Bank had assisted in the financing of the Bolshevik Revolution in Russia during World War one Chase Bank was controlled by the Rockefeller family subsequently it was merged with Warburg's Manhattan Bank to form the Chase Manhattan Bank now this has merged with Chemical Bank of New York making it the largest Wall Street bank their strategy worked even before World War Two was over world government was back on track in 1944 at Bretton Woods New Hampshire the International Monetary Fund and the World Bank were approved with full US participation the second league of net Asians renamed the United Nations was approved in 1945 soon a new international court system was functioning as well all effective opposition to these international bodies before the war had evaporated in the heat of war just as planned these new organizations simply repeated on a world scale what the National Banking Act of 1864 and the Federal Reserve Act of 1913 had established in the u.s. they created a banking cartel composed of the world's central banks which gradually assumed the power to dictate credit policies to the banks of all the nations for example just as the Federal Reserve Act authorized the creation of a new National fiat currency called Federal Reserve notes the IMF has been given the authority to issue a world fiat money called Special Drawing rights or SDRs to date the IMF has created in excess of 30 billion dollars worth of SDR s member nations are being pressured to make their currencies fully exchangeable for SD ours in 1968 Congress approved laws authorizing the Fed to accept SD ours as reserves in the US and to issue Federal Reserve notes in exchange for SD ours what does that mean it means that in the u.s. SDRs are already a part of our lawful money and what about gold sdrs are already partially backed by gold and with two thirds of world gold now in the hands of central banks the money changers can go about structuring the world's economic future in which ever way they deem most profitable keep in mind just as the Fed is controlled by its Board of Governors the IMF is controlled by its Board of Governors which are either the heads of the different central banks or the heads of the various national Treasury Department's Don by their central banks voting power in the IMF gives the US and the UK that is to say the Fed in the Bank of England effective control just as the Fed controls the amount of money in the u.s. the BIS IMF and World Bank control the money supply for the world so we see the repetition of the old Goldsmith's fraud replicated on the national scale with central banks like the Fed and on the international scale by the three arms of the world central bank is this organization of the BIS the IMF and the World Bank which we refer to collectively as the world central bank presently expanding and contracting world credit yes regulations put into effect in 1988 by the BIS required the world's bankers to raise their capital and reserves to 8% of liabilities by 1992 increased capital requirements put an upper limit to the fractional reserve lending similar to the way cash reserve requirements do what is this seemingly insignificant regulation made in a Swiss City eight years ago meant to the world it means our banks cannot loan more and more money to buy more and more time before the next depression as a maximum loan ratio is now set it means those nations with the lowest bank reserves and their systems have already felt the terrible effects of this credit contraction as their banks scrambled to raise money to increase their reserves to 8% to raise the money they had to sell stocks which depressed their stock markets and began the depression first in their countries Japan which in 1988 had among the lowest capital and reserve requirements and thus was the most affected by the regulation has experienced a financial crash which began almost immediately in 1989 which has wiped out a staggering 50% of the value of its stock market since 1990 and 60% of the value of its commercial real estate the Bank of Japan has lowered its interest rates to one-half of one percent practically giving away money to resurrect the economy but still the depression worsens due to the twenty billion dollar US bailout of Mexico the financial collapse in that nation is already known here yet despite the bailout the economy continues to be a disaster one huge debt after another is rolled over as new loans are being made simply to enable Mexico to pay the interest on the old loans in the south of Mexico the poor have been in open revolt as every spare peso is being siphoned out of the country to make interest payments it is important to note that a radical transfer of power is taking place as nations become subservient to a Supra national world central bank controlled by handful of the world's richest bankers as the IMF creates more and more STRs by the stroke of a pen on IMF ledgers more and more nations borrow them to pay interest on their mounting debts and gradually fall under the control of the faceless bureaucrats of the world central bank as the worldwide depression worsens and spreads this will give the world's central bank the power of economic life and death over these nations it will decide which nations will be permitted to receive further loans and which nations will starve despite all the rhetoric about development and the alleviation of poverty the result is a steady transfer of wealth from the debtor nations to the money changers central banks which control the IMF and the World Bank for example in 1992 the third world debtor nations which borrowed from the World Bank paid one hundred and ninety eight million dollars more to the central banks of the developed nations for World Bank funded purposes than they received from the World Bank all this increases their permanent debt in exchange for temporary relief of poverty caused by prior Queens already these repayments exceed the amount of the new loans by 1992 Africa's external debt had reached 290 billion dollars two and a half times greater than a 1980 resulting in skyrocketing infant mortality rates and unemployment deterioration of schools housing and the general health of the people the entire world faces the immeasurable suffering already destroying the third world and now Japan all for the benefit of the moneychangers as one prominent Brazilian politician put it the third world war has already started it is a silent war not for that reason any less sinister the war is tearing down Brazil Latin America and practically all the third world instead of soldiers dine their children it is a war over the third-world debt one which has as its main weapon interest a weapon more deadly than the atom bomb more shattering than a laser beam although it would be absurd to ignore the pivotal role played by influential families such as the Rothchilds the Warburg's the Schiff's the Morgans and the Rockefellers in any review of the history of central banking and fractional banking keep in mind by now central banks and the large commercial banks are up to three centuries old and deeply entrenched in the economic life of many nations these banks are no longer dependent on clever individuals such as a Nathan Rothschild years ago the question of ownership was important but no longer for example both the Bank of England and the Bank of France were nationalized after World War Two and nothing changed nothing at all they endure and continue to grow now protected by numerous laws paid politicians and mortgaged media untouched by the changing of generations three centuries have given them an aura of respectability the old school tie is now worn by the sixth generations son who's been raised in a system that he may never question as he is named to serve on the governing boards of countless philanthropic organizations to focus attention today on individuals or families or to attempt to sort out the current holders of power serves little useful purpose and would be a distraction from the cure the problem is far bigger than that it is the corrupt banking system that was and is being used to consolidate vast wealth into fewer and fewer hands that is our current economic problem change the names of the main players now and the problem will neither go away nor even miss a beat likewise among the hordes of bureaucrats working in the World Bank central banks and international banks only a tiny fraction have any idea of what's really going on no doubt they'd be horrified to learn their work is contributing to the terrible impoverishment and gradual enslavement of mankind to a few incredibly rich plutocrats so really there's no use in emphasizing the role of individuals anymore and the problem even transcends the normal spectrum of political right and left both communism and socialism as well as monopoly capitalism have been used by the moneychangers today they profit from either side of the new political spectrum the big government welfare state on the so-called left-wing versus the neoconservative lays a fair capitalists who want big government totally out of their lives on the right wing either way the bankers win monetary reform is the most important political issue facing this nation that clarified let's proceed to the conclusions in the spirit Lincoln declared with malice towards none with charity towards all at the start of this video we asked a number of troubling questions let's be sure we've answered them what's going on in America today why are we over our heads in debt why can't the politicians bring debt under control why are we over a heads in debt because we're laboring under a debt money system that is designed and controlled by private bankers now some will argue that the Federal Reserve System is a quasi governmental agency but the President appoints only two of the seven members of the Federal Reserve Board of Governors every four years and he appoints them to 14-year terms far longer than his own the Senate does confirm those appointments but the whole truth is that the president wouldn't dare appoint anyone to that Board of whom Wall Street does not approve of course this does not preclude the possibility that some honorable men may be appointed to the Board of Governors but the fact is that the Fed is specifically designed to operate independently of our government as are nearly all other central banks some argue that the Fed promotes monetary stability we saw the current head of the Bank of England Eddie George claimed that this was the most important role of a central bank in fact the feds record of stabilizing the economy shows it to be a miserable failure in this regard within the first 25 years of its existence the Fed caused three major economic downturns including the Great Depression and for the last 30 years has shepherded the American economy into a period of unprecedented inflation again this is not some wild conspiracy theory it's a well-known fact among top economists as Nobel prize-winning economist Milton Friedman put it the stock of money prices and output was decidedly more unstable after the establishment of the Federal Reserve System than before the most dramatic period of instability and output was of course the period between the two wars which includes the severe monetary contractions of 19 20 21 19 29 33 and 1937-38 no other 20-year period in American history contains as many as three such severe contractions this evidence persuades me that at least a third of the price rise during and just after World War one is attributable to the establishment of the Federal Reserve System and that the severity of each of the major contractions 19 20 21 19 29 33 and 1937-38 is directly attributable to acts of commission and omission by the Reserve or ''tis any system which gives so much power and so much discretion to a few men so that mistakes excusable or not can have such far-reaching effects is a bad system it is a bad system to believers and freedom just because it gives a few men such power without any effective check by the body politic this is the key political argument against an independent central bank to paraphrase Clemmie so money is much too serious a matter to be left to the central bankers we must learn from our history before it is too late why can't politicians control the federal debt because all our money is created out of debt again it's a debt money system our money is created initially by the purchase of US bonds the public buys bonds like savings bonds the banks by bonds foreigners buy bonds and when the Fed wants to create more money in the system it buys bonds but pays for them with a simple bookkeeping entry which it creates out of nothing then this new money created by the Fed is multiplied by a factor of 10 by the banks thanks to the fractional reserve principle so although the banks don't create currency they do create checkbook money or deposits by making new loans they even invest some of this created money in fact over 1 trillion dollars of this privately created money has been used to purchase US bonds on the open market which provides the banks with roughly 50 billion dollars in interest risk-free each year less the interest they pay to some depositors in this way through fractional reserve lending banks create over 90% of the money and therefore cause over 90% of our inflation what can we do about all this fortunately there's a way to fix the problem fairly easily speedily and without any serious financial problems we can get our country totally out of debt in one to two years by simply paying off these US bonds with debt-free US notes just like Lincoln issued of course that by itself would create tremendous inflation since our currency is presently multiplied by the fractional reserve banking system but here's the ingenious solution advanced in part by Milton Friedman to keep the money supply stable and avoid inflation and deflation well the debt is retired as the Treasury buys up its bonds on the open market with us notes the reserve requirements of your hometown local bank will be proportionally raised so the amount of money in circulation remains constant as those holding bonds are paid off in US notes they will deposit this money thus making available the currency then needed by the banks to increase their reserves once all the US bonds are replaced with u.s. notes banks will be at 100% reserve banking instead of the fractional reserve system currently in use from this point on the former Fed buildings will only be needed as a central clearinghouse for checks and as vaults for us notes the Federal Reserve Act will no longer be necessary and could be repealed monetary power can be transferred back to the Treasury Department there would be no further creation or contraction of money by banks by doing it this way our national debt can be paid off in a single year or so and the Fed and fractional reserve banking abolished without national bankruptcy financial collapse inflation or deflation or any significant change in the way the average American goes about his business to the average person the primary difference would be that for the first time since the Federal Reserve Act was passed in 1913 taxes would begin to go down now there's a real national blessing for you rather than for Hamilton's banker friends now let's take a look at these proposals in more detail here are the main provisions of a monetary reform Act which needs to be passed by Congress we've drafted a proposed monetary reform Act which follows at the end of this tape of course variations with the same results would be equally welcome one pay off the debt with debt-free US notes as Thomas Edison put it if the US can issue a dollar bond it can issue a dollar bill they both rest purely on the Faith and Credit of the United States government this amounts to a simple substitution of one type of government obligation for another one bears interest the other doesn't Federal Reserve notes could be used for this as well but could not be printed out to the feds abolished as we propose so we suggest using US notes instead to abolish fractional reserve banking as the debt is paid off the reserve requirements of all banks and financial institutions would be raised proportionally at the same time to absorb the new US notes which would be deposited and become the banks increased reserves towards the end of the first year of the transition period the remaining liabilities of financial institutions would be assumed or acquired by the US government in a one-time operation in other words they too would eventually be paid off with debt-free US notes in order to keep the total money supply stable at the end of the first year so all of the national debt would be paid and we could start enjoying the benefits of full reserve banking the Fed would be obsolete an anachronism 3 repeal the Federal Reserve Act of 1913 and the National Banking Act of 1864 these acts delegate the money power to a private banking monopoly they must be repealed and the money power handed back to the Department of Treasury where they were initially under President Abraham Lincoln no banker or person in any way affiliated with financial institutions should be allowed to regulate banking after the first two reforms these acts would serve no useful purpose anyway since they relate to a fractional reserve banking system for withdraw the u.s. from the IMF the BIS and the World Bank these institutions like the Federal Reserve are designed to further centralize the power of the international bankers over the world's economy and the u.s. must withdraw from them they're harmless functions such as currency exchange can be accomplished either nationally or in new organizations limited to those functions such a monetary reform Act would guarantee that the amount of money in circulation would stay very stable causing neither inflation nor deflation remember for the last three decades the Fed has doubled the American money supply every 10 years that fact and fractional reserve banking are the real causes of inflation and the reduction in our buying power a hidden tax these and other taxes are the real reasons both parents now have to work just to get by the money supply should increase slowly to keep prices stable roughly in proportion to population growth about 3% per year not at the whim of a group of bankers meeting and secret in fact all future decisions on how much money will be in the American economy must be made based on statistics of population growth and the price level index the new monetary regulators in the Treasury Department perhaps called the monetary committee would have absolutely no discretion in this matter except in time of declared war this would ensure a steady stable money growth of roughly 3% per year resulting in stable prices and no sharp changes in the money supply to make certain the process is completely open and honest all deliberations would be public not secret as meetings of the feds Board of Governors are today how do we know this will work because these steps remove the two major causes of economic instability the Fed and fractional reserve banking and the newest one is well the BIS Bank of International Settlements but most importantly the danger of a severe depression would be eliminated let's listen to Milton Friedman on the single cause of severe economic depressions I know of no severe depression in any country or any time that was not accompanied by a sharp decline in the stock of money and equally of no sharp decline in the stock of money that was not accompanied by a severe depression issuing our own currency is not a radical solution it's been advocated by presidents Jefferson Madison Jackson Van Buren and Lincoln but it's been used at different times throughout Europe as well perhaps the best example is one of the small islands off the coast of France in the English Channel called Guernsey it's been using debt-free money issues to pay for large building projects for nearly 200 years here we are in Guernsey and this is the Guernsey flour and vegetable market Guernsey is one of the most successful examples of just how well a debt-free money system can work in 1815 a committee was appointed to investigate how best to finance this new market the impoverished island could not afford more new taxes so the state's fathers decided to try a revolutionary idea issue their own paper money they were just colourful paper notes backed by nothing but the people of this tiny island agreed to accept them and trade with them to be sure they circulated widely they were declared to be good for the payment of taxes of course this idea was nothing new it was exactly what America had done before the American Revolution and there are many other examples throughout the world but it was new to Guernsey and it worked miracles this market is still in use and remember it was built for no debt to the people of this island state but what if we follow Guernsey's example how would the bankers react to these reforms certainly the international bankers cartel will oppose reforms that do away with their control of the world's economies as they have in the past but it is equally certain that Congress has the constitutional authority and responsibility to authorize the issuance of debt-free money us notes and to reform the very banking laws it ill-advisedly enacted undoubtedly the bankers will claim that issuing debt-free money will cause severe inflation or make other dire predictions but remember it is fractional reserve banking which is the real cause of over 90% of all inflation not whether debt-free US notes are used to pay for government deficits in the current system any spending excesses on the part of Congress are turned into more debt bonds and the 10% purchased by the Fed are then multiplied many times over by the bankers causing over 90% of all inflation our fractional reserve and debt based banking system is the problem we must ignore it's inevitable resistance to reform and remain firm until the cure is complete as the director of the Bank of England in the 1920s Sir Josiah Stamp put it referring to this modern fractional reserve banking system banking is conceived in an equity and born in sin bankers owned the earth take it away from them but leave them the power to create money and control credit and with the flick of a pen they will create enough money to buy it back again take this great power away from the bankers and all great fortunes like mine will disappear and they ought to disappear for this would be a better and happier world to live in but if you want to continue the slaves of bankers and pay the cost of your own slavery let them continue to create money and to control credit Americans are slowly figuring this out today over 200 cities and counties have endorsed the proposal of a nonprofit organization called sovereignty the sovereignty movement calls for Congress to authorize the Secretary of the Treasury to issue 90 billion dollars per year of US notes not Federal Reserve notes nor debt based bonds to loan money interest free to cities counties and school districts for needed capital improvements remarkably and to their praise the community Bankers Association of Illinois representing 515 member banks has endorsed the sovereignty proposal a good step in the right direction as Milton Friedman has repeatedly pointed out no severe depression can occur without a severe contraction of money in our system only the Fed the Bank of International Settlements with u.s. bankers cooperation or a combination of the largest Wall Street banks could cause a depression in other words our economy is so huge and resilient a depression just can't happen by accident unless we reform our banking system they will always have that power they can pull the plug in our economy anytime they choose the only solution is to abolish the Fed and the fractional reserve banking system and withdraw from the BIS only that will break the power of the international bankers over our economy and keep in mind a stock market crash itself cannot cause a severe depression only the severe contraction of our money supply can cause a severe depression the stock market crash of 1929 only wiped out market speculators mostly the small to medium ones resulting in three billion dollars in wealth changing hands but it served as a smokescreen for a 33 percent contraction and credit by the Fed over the next four years which resulted in over 40 billion dollars in wealth from the American middle-class being transferred to the big banks then despite impotent howls of protest from a divided Congress the independent Fed kept the money supply contracted for a full decade only World War two ended the terrible suffering the Fed inflicted on the American people in a depression the remaining wealth of the debt burden American middle class will be wiped out by an employment declining wages and the resulting foreclosures if we start to act to reform our monetary system the money changers may do what they did in 1929 and then the 1930s crash the stock market and use that as a smokescreen while contracting the money supply but if we're determined to fight to regain control over our money we can come out of it fairly quickly perhaps in only a very few months as us notes begin to circulate and replace the money withdrawn by the bankers the longer we wait the greater the danger will permanently lose control of our nation but some still wonder why the international bankers would want to cause a depression wouldn't that be killing the goose that is currently laying all those golden inter stakes remember what Larry Bates said at the first of this videotape you see in periods of economic upheaval in economic crisis wealth is not destroyed it is merely transferred do we have any hints as to what the money changers have in store for us here's what David Rockefeller the chairman of Chase Manhattan Bank the largest Wall Street bank had to say we are on the verge of a global transformation all we need is the right major crisis and the nation will accept the new world order so crisis is needed to fulfill their plans quickly the only question is when the crisis will occur fortunately we probably have a little time it's unlikely that this crisis will occur before the 1996 elections but after that the danger begins rising but whether or not they decide to cause a crash or a depression through relentless increases in taxes and the loss of hundreds of thousands of jobs being sent overseas thanks to trade agreements such as God and NAFTA the American middle class is an endangered species cheaper labor including slave labor in Red China which Harry Wu has heroically documented is being used to compete with American labor in other words money is being consolidated in fewer and fewer hands as never before in the history of this nation or the world without reform the American middle class will soon be extinct leaving only the very rich few and the very many poor as has already occurred in most of the world we've been warned of all this by congressmen presidents industrialists and economists down through the years religious leaders too have seen the danger about 1898 during the time of William Jennings Bryan Pope Leo the 13th put it this way on the one side there is the party which holds the power because it holds the wealth which has in its grasp all labor and all trade which manipulates for its own benefit and its own purposes all the sources of supply and which is powerfully represented in the council's of state itself on the other side there is the needy and powerless multitude sore and suffering rapacious usery which although more than once condemned by the church is nevertheless under a different form but with the same guilt still practiced by avaricious and grasping men so that a small number of very rich men have been able to lay upon the masses of the poor a yoke little better than slavery itself more recently during America's Great Depression pope pius xi spoke of the same problem in our days not alone is wealth accumulated but immense power and despotic economic domination is concentrated in the hands of a few this power becomes particularly irresistible when exercised by those who because they hold and control money are able also to govern credit and determine its allotment for this reason supplying so to speak the lifeblood to the entire economic body and grasping as it were in their hands the very soul of the economy so that no one dare breathe against their will educate your friends our country needs a solid group who really understand how our money is manipulated and what the solutions really are because if a depression comes there will be those who call themselves conservatives who will come forward advancing solutions framed by the international bankers beware of calls to return to a gold standard why simple because never before has so much gold been so concentrated outside of American hands and never before has so much gold been in the hands of international governmental bodies such as the World Bank and International Monetary Fund a gold-backed currency usually brings despair to a nation and to return to it would certainly be a false solution in our case remember we had a gold-backed currency in 1929 and during the first four years of the Great Depression likewise beware of any plans advanced for a regional or world currency this is the international bankers Trojan horse educate your member of Congress it only takes a few persuasive members to make the others pay attention most congressmen just don't understand the system some understand it but are so influenced by Bank PAC contributions that they ignore it not realizing the gravity of their neglect we hope we've made a valuable contribution to the national debate on monetary reform it remains for each man to do his duty consistent with this state in life may God give us the light to help reform our nation and ourselves we say ourselves because ultimately vast multitudes of men are going to be driven more and more to desperation by the accumulation of the world's wealth and fewer and fewer hands men will tend to become like their oppressors selfish and greedy rather let's keep in mind during this period of reform a warning not to lose sight of greater things as pope pius xi put it for what will it profit men that a more prudent distribution and use of riches make it possible for them to gain even the whole world if thereby they suffer the loss of their own souls what will it profit to teach them sound principles in economics if they permit themselves to be so swept away by selfishness by unbridled and sordid greed that hearing the commandments of the Lord they do all things contrary [Music]

Channel: David Lessig

Views: 535,456

Rating: 4.7772827 out of 5

Keywords: banks, banking, finance, federal reserve, the fed, economics, education, documentary, mystery of iniquity, the root of all evil, money, cash, history, america, united states

Id: lbarjpJhSLw

Length: 208min 49sec (12529 seconds)

Published: Tue Nov 28 2017

Reddit Comments

[u/FountainsOfFluids]

Super biased. Not useful at all for understanding modern money, because it skews so hard.