Chapter 8
Ok, now it is time to show exactly how the Federal Reserve System creates money out of nothing. But before we do that, let’s quickly recap the different forms of money discussed up to this point:
1. Commodity money:
Commodity money is any form of money that has intrinsic value. Sheep, cows, corn, wheat; all of these served as early forms of commodity money. When mankind discovered metal and learned to craft it into tools and weapons, the metals themselves became a new (more convenient) form of commodity money. Unlike livestock, metal didn’t need to be fed, watered and cleaned up after. And, unlike wheat and corn, you didn’t have to worry about metal going bad, becoming contaminated with bugs or mold, etc.
Also, metal was easily divisible. Assuming a cow was equal in value to 100 pounds of iron, and an item was for sale valued at 10 pounds of iron (or “1/10th” of a cow) the individual buying with iron had a distinct advantage; he could easily produce the exact amount of money needed. For these reasons, metal became the most common form of commodity money. Though different metals were used (iron, tin, copper, etc.) gold and silver coins became the standard.
2. Receipt money:
Gold and silver coins were a much improved form of commodity money, but they still had some drawbacks. For instance, if you were even moderately wealthy carrying all of your gold or silver coins around with you was cumbersome and potentially dangerous. Finding a place to safely hide your coins wasn’t easy either.
Seeing an opportunity to earn a little extra money, goldsmiths solved this problem by renting citizens storage space in their vaults. When a citizen came in to deposit their coins, the goldsmith would give them a paper receipt as proof of their deposit. (So, if $1,000 in gold coins were brought in, a receipt for $1,000 in gold coins was given…) The receipt was “payable on demand” meaning the depositor, at any time, could come in and exchange the receipt for their gold. Because these receipts were literally “good as gold,” citizens began accepting them as payment for goods and services. From that point forward the receipts became a legitimate form of paper money; 100% backed by precious metals.
As time passed, it became increasingly rare for individuals to visit the goldsmith and demand coins in exchange for their receipts. In other words, although receipt holders had the right to exchange their receipts for gold at any time, they were happy to leave it locked up in the goldsmith’s vault. It was much more convenient to use the paper money (instead of the physical coins they represented) in commerce.
3. Fractional Money:
At some point, the goldsmiths realized that almost nobody was coming in to withdraw their coins. With literally a fortune in gold lying around in the vault collecting dust, the goldsmiths had an idea: Why not take their depositor’s gold and loan it out? Instead of earning only a small storage fee, the goldsmith could now earn far more money (in interest) on the loans. And since receipt money was already in use, he didn’t even have to remove the coins from storage. When a borrower came in seeking $1,000, the goldsmith could simply issue $1,000 worth of new receipts!
This of course was an act of pure fraud. The goldsmith had no right to issue a receipt that gave the borrower (or anyone the borrower spent the receipt with) the right to claim somebody else’s gold. Additionally, the only reason citizens accepted receipts as payment for their goods and services is because they believed the receipts were 100% backed by an actual quantity of coins locked away in the vault. Unbeknownst to them, this was no longer the case. Where the total money supply was once backed by 100% reserves of coin in storage, the goldsmith (by creating new receipts) had now secretly drove down that backing to a “fractional reserve.” And with each new printing, the fraction became less and less. Before long, citizens were (unknowingly) accepting paper money backed by only half the bill’s printed value, a quarter its printed value, a tenth its printed value. When people finally figured out what was going on, they rushed to exchange their receipts for coin. Of course, only the first few in line were able to do so. The rest were left holding worthless paper.
4. Fiat Money:
Encarta defines fiat money as: “paper money that a government declares to be legal tender although it is not based on or convertible into coins…”Another way to put that would be: Fiat money is inherently worthless paper, backed by absolutely nothing, and because so, government must force people to accept it via legal tender laws. But believe it or not, there is actually something worse than fiat paper money. And this brings us to the final form of money we’ll be discussing in this book; the form of money we’re using today is:
5. Debt Money:
Take the inherently fraudulent characteristics of a fractional money system; add in the greater fraud of pure fiat, top it off with a mechanism designed to generate inescapable perpetual debt and presto: You’ve got the greatest monetary fraud ever perpetrated against mankind. And, wouldn’t you know, you also have all the components that make up our current “debt money” system.
Rather than openly print the money it needs to cover its reckless spending, our government uses a less obvious tactic. Make no mistake, it still ends up “creating money out of nothing” for its own purposes, it simply uses its friends at the Federal Reserve to do so. And in exchange for helping our government obtain the money it needs, the banking system reaps financial benefits that are nothing short of obscene. –At a cost to our country that is incalculable.
You see, unlike a normal fiat money system (where the government simply creates its own worthless paper money, spends it into the economy, and demands everyone accept it) our entire money supply is built on debt. That means, not a single dollar comes into existence but by the act of borrowing it into existence. First let me explain this in the simplest terms possible, and then we’ll get into a more detailed explanation.
Assume the government needs 1 billion dollars. Rather than print the money itself, the government goes to its banking buddies at the Federal Reserve. The Federal Reserve is ALWAYS happy to loan the government the money it needs. The problem is the Fed doesn’t actually loan anything. Yes, when the government shows up with its 1 billion dollar bond, the Fed will give the government a 1 billion dollar check in exchange; but that 1 billion dollar Federal Reserve check doesn’t have anything backing it. The money is created on the spot out of thin air; poof, there it is.
The government now has its billion dollars which it spends into the economy (further inflating our money supply), but it also has a billion dollar debt that you and I (and our children) will be stuck paying interest on. And unfortunately, that’s not all. As that 1 billion makes its way into our banking system, the banks (using it as reserves) are permitted to inflate our money supply by another 9 billion! (And they accomplish this by making yet more loans of “money created out of nothing” to businesses and individuals.)
“The bottom line is that the Congress and the banking cartel have entered into a partnership in which the cartel has the privilege of collecting interest on money which it creates out of nothing, a perpetual override on every American dollar that exists in the world. Congress, on the other hand, has access to unlimited funding without having to tell the voters their taxes are being raised through the process of inflation.”
Such is the nature of our entire money supply. Our purchasing power is stolen via inflation, our collective purchasing power is eroded by inescapable interest on every dollar in existence (year in and year out), and if we were to try and pay off any significant portion of our debt, within the rules of the current system, our nation would be thrust into economic chaos. Why? Because our “debt dollars” disappear when we pay off our debts and that constricts our money supply. But the REMAINING debt (the only thing keeping ANY money in circulation) does not “adjust” downward. As the money supply gets tighter, those who are trapped in high dollar loans (say home loans based on prices that reflected a larger money supply) will find it increasingly difficult to make their payments. There are simply too few dollars to service the debt and fuel the economy. To fully understand this, imagine trying to pay off ALL debt: as a nation we wouldn’t have a single penny to divide amongst us.
It’s sobering to consider, under our current system, there can never be another debt-free generation…not even close. To pay off a large portion of our debt would be disastrous; to pay it all off, impossible. Does this sound like a system designed with our best interests in mind?
The Nuts and Bolts
Alright, we’ve given the easy explanation, now a slightly expanded overview of how the Fed creates and expands our nation’s debt money supply. As in the example above, we’ll focus on the primary method used; it’s called the “open market operation.”
1. The government needs money, but under our current system it can’t create “Federal Reserve Notes” by itself. That of course can only be done by the Federal Reserve. So instead, it creates the next best thing. The government “…adds ink to a piece of paper, creates impressive designs around the edges, and calls it a (Treasury) bond or Treasury note.” –Griffin. These pieces of paper are generically referred to as Treasury Securities and they are offered as collateral to potential lenders.
As a simple example: The government creates a bond in a denomination of $100,000 with a maturity date of ten years. All that means is, a lender can acquire the bond for $100,000, he will earn interest on the loan for ten years, and when the bond matures (at the end of ten years) his principle loan amount ($100,000) will be repaid. Treasury securities are offered in many different denominations and maturity can vary between 30 days (very short term loan) to 30 years.
SIDE NOTE: If you or I purchase these Treasury Securities, it does nothing to expand the nation’s money supply. That is because, when you or I loan the government money, we are not allowed to create a new pile of money to do it. We must use money we’ve already earned. The same is true when a business or other institution acquires these securities; money already in circulation must be used. –Only Federal Reserve banks, and commercial banks, are allowed to create money out of nothing for the purpose of acquiring government securities.
…continuing
2. The government, looking to convert its “Treasury Securities” into something it can spend (Federal Reserve Notes and checkbook money) turns to the Fed. The Fed is happy to oblige. It pulls a check out of its magic checkbook, writes in whatever dollar amount is needed, and gives it to the government in exchange for the securities.
“There is no money in any account to cover this check. Anyone else doing this would be sent to prison. It is legal for the Fed, however, because Congress wants the money, and it is the easiest way to get it. (To raise taxes would be political suicide; to depend on the public to buy all the bonds would not be realistic…and to print very large quantities of currency would be obvious and controversial.) This way, the process is mysteriously wrapped up in the banking system. The end result, however, is the same as turning on government printing presses and simply manufacturing fiat money…to pay government expenses.”
3. The government endorses its Federal Reserve check, and then deposits it with one of the Federal Reserve banks. The check amount is added to the government’s account balance and, just like that, the government can begin spending the money, which it does by writing checks of its own. “These checks become the means by which the first wave of fiat money floods into the economy. Recipients now deposit them into their own (commercial) bank accounts…” –Griffin. And this is where the real action begins.
SIDE NOTE: Some like to point out Federal Reserve banks are “not operated for profit;” and that they “return to the U.S. Treasury all earnings in excess of Federal Reserve operating expenses.” Assuming we accept all excess earnings really are handed over (the Fed has never been properly audited) this fact is still largely irrelevant. The real profits are made when commercial banks get their hands on the newly created Fed money. …And this should come as no surprise; it was the commercial banking interests of Rockefeller, Morgan, Kuhn Loeb, and Rothschild that crafted the system.
…continuing
4. So assume the government pays Joe Contractor $1 million by check and he promptly deposits that check at his commercial bank. Joe is happy because he now has $1 million dollars in the bank. But the bank is even happier. In accordance with the rules of our Federal Reserve System, commercial banks only need to keep 10% reserves on hand (in cash or other securities.) In short, that means the bank Joe deposited his million dollars with immediately has $900,000 in “excess reserves.” ($1 million minus 10% in required reserves leaves $900,000 excess reserves.) Guess what that means? It means the bank is allowed to create $900,000 in new money (for loans) out of thin air.
5. But that’s not all!!! When that $900,000 in newly created debt money is spent into the economy, it finds its way right back into the banking system as new deposits and those deposits create “excess reserves” too. As a simple example, if the $900,000 all winds up in one bank, that bank is only required to keep 10% of $900,000 in reserves. So that means it can now create $810,000 in new loans out of nothing; again the debt money supply increases! And when that newly created $810,000 is deposited, it can be used to create another $729,000 in loans “created out of nothing.”
This continues over and over again. By the time the process reaches its legal limit, the commercial banks will have created 9 million new debt dollars on top of the original $1 million Federal Reserve loan (also created out of thin air) for the government. (-A total increase in our money supply of $10 million!) Even if the Fed bank hands over every penny of interest it earns on the $1 million loan, the commercial banks can earn ten times as much (or more depending on the interest rates) on the $9 million they created.
Try to imagine the wealth and power you could amass under a system that allowed YOU to do this. Imagine being legally allowed to loan out (for your own profit) billions of dollars worth of other people’s money. Not bad, right? Now imagine something even more absurd; being allowed to use the same billions as reserves, out of which you can create TEN TIMES as many billions to loan out for your own profit. Now THAT is leverage!! Even the best among us, presented with an opportunity to acquire such a lucrative government-backed monopoly, might find it hard to resist. –To say nothing of a group of unscrupulous (yet highly intelligent) bankers.
“The total amount of fiat money created by the Federal Reserve and the commercial banks together is approximately ten times the amount of the underlying government debt. To the degree that this newly created money floods into the economy in excess of goods and services, it causes the purchasing power of all money, both old and new, to decline. Prices go up because the relative value of the money has gone down. The result is the same as if that purchasing power had been taken from us in taxes.
(And) …Since our money is an arbitrary entity with nothing behind it except debt, its quantity can go down as well as up. When people are going deeper into debt, the nation’s money supply expands and prices go up, when they pay off their debts and refuse to renew, the money supply contracts and prices tumble. This alteration between periods of expansion and contraction of the money supply is the underlying cause of booms, busts, and depressions.
Who benefits from all of this? Certainly not the average citizen. The only beneficiaries are the political scientists in Congress who enjoy the effect of unlimited revenue to perpetuate their power, and the monetary scientists within the banking cartel called the Federal Reserve System who have been able to harness the American people, without their knowing it, to the yoke of modern feudalism.”
That covers the most common method by which the Fed System inflates our money supply – by “monetizing” government debt. (Converting government IOUs like Treasury bonds into “money” by simply creating it out of nothing and loaning it to the government.) But if the government isn’t borrowing enough from the Fed, there are plenty of other ways for “the system” to work its magic.
Another inflation mechanism is known as the Discount Window. The Discount Window is where commercial banks go to borrow money from the Fed. The inflationary process is similar to the Open Market Operation described above, only a little more direct.
Rather than loan the government money (which then becomes government checks, then eventually ends up being deposits in commercial banks, then is counted as reserves, which then can be multiplied by up to 10 times the original loan amount) the Fed simply loans money to the commercial banks directly. It’s a much easier process. If a bank borrows $1 million, it can immediately start the process of creating more money. (Subtract 10% for reserves, create $900,000. When the $900,000 makes its way back, subtract 10% for reserves, create $810,000, etc.)
The enormous increase in our nation’s money supply leading to the stock market crash in 1929 (and the Great Depression) was not due to government borrowing. The government, prior to the crash, was doing well and had little need to borrow. No, the bulk of new money originated out of the Fed’s Discount Window. At this point in our history, there is little doubt about whether or not Fed policy IS what crashed our economy and led to the Great Depression. It most certainly did. –At this point, the arguments are based more on whether or not it was done on purpose.
Another method the Fed can use to increase our money supply is to simply change the required “reserve ratios” that commercial banks must hold. The current requirement of 10% is purely arbitrary. If there is a need for more money, it could be easily cut in half to 5% (doubling the amount of new money that can be created from deposits) quartered to 2.5%, or even dropped all together. It’s the Fed’s call.
And as if all this weren’t enough, the Monetary Control Act of 1980 handed the Fed even more power. Now, the Fed has the authority to legally monetize foreign debt too! –Which it has already done to the tune of many billions of dollars.
“The apparent purpose of this legislation is to…bail out those governments which are having trouble paying the interest on their loans to American banks. When the Fed creates fiat American dollars to give foreign governments in exchange for their worthless bonds, the money path is slightly longer and more twisted, but the effect is similar to the purchase of U.S. Treasury Bonds. …they flow back into the U.S. money pool (multiplied by nine) in the form of additional loans. The cost of the operation is once again borne by the American citizen through the loss of purchasing power. …As long as someone is willing to borrow American dollars, the cartel will have the option of creating those dollars specifically to purchase their bonds and, by so doing, continue to expand the money supply.”
In the end, taxation is about control. Redistribution of wealth provides the elites a tremendous amount of leverage; to both guide the earth’s citizens as they see fit, and protect their power from potential competition. Inflation IS a form of taxation. And because it is scarcely understood, it’s the preferred method for extracting purchasing power from the citizenry. Worst of all, the inflation tax falls heaviest on those who’ve actually lived within their means and saved their money, those living on fixed incomes, and the poor and middle class.
We’ve been here before
This is not the first or second time “banking elites” have sought to seize control of our monetary system. It is the third. [1] Our first Central Bank, “The Bank of the United States,” was narrowly voted out of existence in 1811. Our second Central Bank, “The 2nd Bank of the United States,” went down kicking and screaming in 1836. Sadly, our third Central Bank, The Federal Reserve, was created 77 years later (in 1913) and has been with us ever since. But as our history clearly shows, the Fed only exists because we permit it to. For proof, we needn’t look any further than the hard-fought battle that brought the 2nd Bank of the United States to its knees.
You see, we’ve already covered the danger of handing over control of our nation’s money supply to “unscrupulous, yet highly intelligent bankers.” We’ve covered how the Federal Reserve System has been used (and is being used) against us. What we haven’t covered is what can happen when just ONE effective leader turns on the financial elite, bites the hand that feeds Washington and (with the help of an informed and fed up citizenry) engages the enemy head on. So let’s cover that now.
Nicholas Biddle VS Andrew Jackson
The 2nd Bank of the United States was created in 1816. It was granted a 20-year charter and was headed by Nicholas Biddle. Biddle represented:
“…the archetype of the new Eastern Establishment: wealthy, arrogant, ruthless, and brilliant. He had graduated from the University of Pennsylvania at the age of only thirteen, and, as a young man entering business, had fully mastered the secret science of money. –With the ability to control the flow of the nation’s credit, Biddle soon became one of the most powerful men in America.” (Emphasis added.)
By first heavily inflating the money supply and then suddenly, drastically and deliberately constricting it, the Bank managed to wipe out many competing state-run banks. (And that translates into a LOT of Americans losing everything they had.) In fact, the “2nd Bank of the United States” had the distinct honor of handing our newly formed republic its first nationwide depression. The ensuing chaos became known as the “Panic of 1819.”
“Starting in July of 1818…the BUS (2nd Bank of the United States) began a series of enormous contractions, forced curtailment of loans, contractions of credit in the south and west…The contractions of money and credit swiftly brought to the United States its first widespread economic and financial depression. …The result of this contraction was a rash of defaults, bankruptcies of business and manufacturers...” –Murray Rothbard.
“The pressure placed upon the state banks deflated the economy drastically, and as the money supply wilted, the country sank into severe depression.” –Herman Krooss
As the effects of the Panic of 1819 took hold (hundreds of thousands out of work, unemployment exceeding 70% in some areas, thousands placed in debtor’s prison) public sentiment again turned toward the “honest-money” principles long advocated by Thomas Jefferson. But the “Jeffersonian Republicans” (formerly the champions of honest money) had abandoned this platform. …Fortunately for America, one man (Andrew Jackson) stood ready to take their place. Elected President in 1828, Jackson pledged to resurrect the principles of sound money, abolish the bank, and (in so doing) rid our nation of a threat he deemed “…more formidable and dangerous than a naval and military power of the enemy.”
But this would be no easy task…the Bank’s influence ran deep into the halls of Congress. Biddle, as one of the “most powerful men in America,” was able to reward compliant Congressmen with assistance in the business world, and he did so regularly. Or, as Republican Congressman John Randolph put it: “Every man you meet in this House…with some rare exceptions…is either a stockholder, president, cashier, clerk or doorkeeper, runner, engraver, paper maker, or mechanic in some other way to a bank.”
Neither Jackson nor Biddle was going to just roll over. Each man knew his enemy, the lines had been drawn, the stakes couldn’t be higher; this was going to be a war.
Using his influence, Biddle fired the first round. In a brilliant political move, he persuaded Congress to pass a bill granting early renewal of the Bank’s charter. The year was 1832 and with Jackson up for reelection, Biddle assumed Jackson wouldn’t dare defy Congress and veto the bill. (The controversy could potentially cost him the election.) …Biddle assumed wrong. The law granting early renewal only infuriated Jackson. The President stood his ground – and the war was on.
“Jackson decided to place his entire political career on the line for this one issue and, with perhaps the most passionate message ever delivered to Congress by any President, before or since, he vetoed the measure.
…Congress, the banks, speculators, industrialists, and segments of the press; these were the forces commanded by Biddle. But Jackson had a secret weapon which had never been used before in American politics. That weapon was a direct appeal to the (voters.) He took his message on the campaign trail and delivered it in words well chosen to make a lasting impression…He spoke out against a moneyed aristocracy which had invaded the halls of Congress, impaired the morals of the people, threatened their liberty, and subverted the electoral process. The Bank, he said, was a hydra-headed monster eating the flesh of the common man. He swore to do battle with the monster and slay it or be slain by it.
…Jackson had awakened the indignation of the American people. When the November ballots were cast, he received a mammoth vote of confidence. He received 55% of the popular vote…and eighty per cent of the vote in the Electoral College. …Jackson won the election, but the Bank had four more years to operate, and it intended to use those years to sway public sentiment back to its support. The biggest battles were yet to come.”
After the election, Jackson wasted no time mounting his counter attack. He instructed his Treasury Secretary to put all future federal deposits in various state-run banks. Moreover, he ordered all federal expenses to be paid (first) out of the remaining funds still held in the 2nd Bank of the United States. With no new deposits coming in, and with the government’s existing account drained to zero, the Bank would surely be crushed.
–But Jackson’s Treasury Secretary (Louis Mclane) refused the order. Undeterred, Jackson replaced him with a new Treasury Secretary (William Duane) and instructed him to do the same. But Duane also refused the order and, worse, he refused to resign! Not a problem. Duane received the following from the President himself: “Your further services as Secretary of the Treasury are no longer required.” And with that, the third Treasury Secretary, Roger Taney, took his post. –And federal funds began moving out of the Bank.
Convinced he finally had “the monster” where he wanted it, Jackson is reported to have said: “I have it chained…I am ready with the screws to draw every tooth and then the stumps…Mr. Biddle and his Bank (ought to be) quiet and harmless as a lamb in six weeks.” But the President’s optimism was premature.
Biddle Deliberately Crashes the Economy
“Biddle responded, not like a lamb, but more like a wounded lion. His plan was to rapidly contract the nation’s money supply and create another panic-depression similar to the one the Bank had created thirteen years earlier. This then could be blamed on Jackson’s withdrawal of federal deposits, and the resulting backlash surely would cause Congress to override the President’s veto.”
Historian Robert Remini writes:
“Biddle counterattacked. He initiated a general curtailment of loans throughout the entire banking system… It marked the beginning of a bone-crushing struggle between a powerful financier and a determined and equally powerful politician. (Biddle) knew that if he brought enough pressure and agony to the money market, only then could he force the President to restore the deposits. He almost gloated. “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. …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 re-charter of the Bank…”
What words are there to describe the amazing arrogance and depravity of such men? That they exist at all (and that we have handed them so much power) is enough to make any moral human being shudder in disgust.
With the well-being of millions of citizens in the palm of his hand, Biddle saw no obligation to protect them from harm. Rather, he sadistically tightened his grip. And after crushing enough families to cause “widespread suffering,” he (backed by many in the press and Congress) pointed to Jackson as the culprit! In no uncertain terms, Biddle and the Bank were put forward as the saviors – the only ones who could possibly fix the economy that Jackson had broken. And to help ease the suffering, they were ready, willing and able to “assist.” All they needed was for Congress to overrule Jackson, restore the deposits he’d removed, and re-charter the bank.
“By the time Congress reconvened in December, in what was called the “Panic Session,” the nation was in an uproar. Newspapers editorialized with alarm, and letters of angry protest flooded into Washington. …it began to look like Biddle’s plan would work. In the public eye, it was Jackson who was solely responsible for the nation’s woes. It was his arrogant removal of Secretary Duane; it was his foolish insistence on removing the deposits; it was his obstinate opposition to Congress.
For one-hundred days a “phalanx of orators” daily excoriated the President for his arrogant and harmful conduct. …a resolution of censure was introduced into the Senate and, on March 28, 1834, it was passed by a vote of 26 to 20. This was the first time that a President had ever been censured by Congress, and it was a savage blow to Jackson’s pride.
The President rumbled around the White House in a fit of rage. “You are a den of vipers,” he said to a delegation of the Bank’s supporters. “I intend to rout you out and by the Eternal God I will rout you out!”
A less determined man would have surrendered, but Jackson simply redoubled his efforts. Slowly but surely, public awareness grew that it was Biddle (not Jackson) who was to blame for the nation’s suffering. Ironically, Biddle’s giant ego (and equally big mouth) played a prominent role in exposing the truth. He was so proud of his brilliant plan to crash the economy, he openly bragged about it. And when people heard him brag, and then saw him actually implement the plan, they spoke out against what he had done. (Imagine that.) The tables turned once and for all when the Governor of the Bank’s home state (George Wolf of Pennsylvania) publicly denounced both Biddle and the Bank. Within days, the mood of the country turned permanently and passionately in support of Jackson.
In the House, Democrats introduced a series of resolutions to show support for the President’s policy toward the bank. A resolution stating the bank “ought not to be re-chartered” passed with a vote of 134 – 82. That federal deposits in the bank “ought not to be restored” passed with a vote of 118 – 103. That a special committee of Congress ought to investigate whether the Bank deliberately caused the economic crisis passed with a vote of 175 – 42! Jackson had been vindicated. Even the Senate’s vote of censure was eventually rescinded.
As for Biddle:
“When the investigating committee arrived at the Bank’s doors in Philadelphia armed with a subpoena to examine the books, Biddle flatly refused. Nor would he allow inspection of correspondence with Congressmen relating to their personal loans and advances. …For lesser mortals, such action would have resulted in…stiff fines or imprisonment. But not for Nicholas Biddle. Remini explains:”
“The committeemen demanded a citation for contempt, but many southern Democrats opposed this extreme action, and refused to cooperate. As Biddle bemusedly observed, it would be ironic if he went to prison “by the votes of members of Congress because I would not give up to their enemies their confidential letters.”
“The ending of this saga holds no surprises. The Bank’s charter expired in 1836 and it was restructured as a state bank by the Commonwealth of Pennsylvania. After a spree of speculation in cotton, lavish advances to the Bank’s officers, and the suspension of payment in specie, Biddle was arrested and charged with fraud. Although not convicted, he was still undergoing civil litigation when he died.”
Where do we stand today?
The Congress has the power to abolish the Federal Reserve System, but our leaders have been ominously silent on the issue. It seems few are interested in cutting off the hand that feeds Washington’s insatiable appetite for money and power. However, there has been one lone voice in the wilderness. -A man who fully understands the fraudulent nature of our monetary system. -A man who fully understands the objectives of those who created it. He is Presidential Candidate Ron Paul.
The consistency of Congressman Paul’s voting record is impeccable and his dedication to the founding principles of our country unimpeachable. In Congress, he has spoken out forcefully against the Fed for decades. He is honest, intelligent, humble, brave, and sincere; a true public servant and true leader. Above all, he is NOT an anointed instrument of the “intellectual elite and world bankers” trying to erode our sovereignty “piece by piece.”
Dr. Paul has no ties to the CFR, no ties to the Trilateral Commission, and no ties to the Bilderberg Group. In short, he isn’t a member of “The Establishment.” There are no questions regarding where his loyalties lie. For more than 40 years (first in the military, then in Congress) he has upheld his sworn oath to “Preserve, Protect and Defend” the Constitution of the United States. In this day and age, we are very lucky to have a man of his integrity as a choice for President.
Our country truly is at the crossroads. If our founding fathers saw America today, they’d surely think we were conquered by a foreign army. And in a sense, they’d be correct. The ruling elite have infiltrated and perverted our system of government to serve their own ends. They’re “arrogant, brilliant, and ruthless,” and they’ll stop at nothing to finish what they have started. That is why WE must stop them. And by striking the root of their power, with the help of a determined and principled leader like Ron Paul, we will.
Joe Plummer 8-12-2007
• “…they who control the credit of the nation direct the policy of Governments and hold in the hollow of their hands the destiny of the people.” –Reginald McKenna, Midlands Bank of England
• "For more than a century ideological extremists at either end of the political spectrum have seized upon well-publicized incidents...to attack the Rockefeller family for the inordinate influence they claim we wield over American political and economic institutions. Some even believe we are part of a secret cabal working against the best interests of the United States, characterizing my family and me as “internationalists” and of conspiring with others around the world to build a more integrated global political and economic structure- one world, if you will. If that is the charge, I stand guilty, and I am proud of it." –David Rockefeller, from his book "Memoirs," page 405
• "The bankers own the earth. Take it away from them, but leave them the power to create money, and with the flick of the pen they will create enough deposits to buy it back again. However, take it away from them, and all the great fortunes like mine will disappear and they ought to disappear, for this would be a happier and better world to live in. But, if you wish to remain the slaves of bankers and pay the cost of your own slavery, let them continue to create money." – Josiah Charles Stamp, former director of the Bank of England
Acknowledgements - Introduction
1. Money is Power...............................................5
2. Something for Nothing................................12
3. The Bailout.................................................18
4. Dreaming of a New World Order......................27
5. BUILDING a New World Order........................35
6. What is Money?..........................................44
7. The World's First Central Bank........................58
8. How They Do It - How We Stop Them.............64
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[1] Going back in time to the point where our current “United States Federal Government” was established (as we’re doing here) the Fed is only our third Central Bank. If we count the short-lived “Bank of North America” (1781 – 1783) which was established PRIOR to the ratification of our Constitution and Bill of Rights, the Fed would be our fourth central bank. --> RETURN to previous position
