by Katherine Smith, PhD
December 29, 2010
Federal Reserve isn’t evil because they print our money and make us
(the U.S. Taxpayers) pay interest on it. They are evil because, until
October 2008, the Fed gave us a no-limit credit card that we used to buy
houses, cars, RVs, TVs and DVDs - the “stuff” which, according to the GEO4, a
massive United Nations Report, put the planet at the unknown points of no
G. Edward Griffin, author of,
The Creature from Jekyll Island, a work
considered by Ron Paul to be “a superb analysis of the Federal Reserve,” has
this to say about the Fed:
“(The Fed) Is nothing more or less than a cartel. It’s no different than an
oil cartel, a banana cartel or a sugar cartel. It happens to be a banking
cartel and, like all cartels, it’s made up of the big players in that
industry who get together and set rules to reduce or eliminate competition
among themselves and regulate their own industry.
And they regulate not in
the best interests of the people, of course. Because it is a cartel, they
regulate to their own advantage, but then they always go to great lengths to
convince the people that they are regulating in such a way that it is in the
best interest of the people.”
Is The Fed Dead?
Let’s Ask G. Edward Griffin
for His Expert View:
The Fed is a cartel financed by the biggest player in the world, the
of Rothschild. 
In recent years, the power of the cartel has been consolidated into the
hands of Lehman Brothers, Goldman Sachs, the Rockefeller family, and the
J.P. Morgan interests, the
Global Financial Elite (TGFE, an non-conspiracy
Griffin along with just about everyone else in the world are sure they know
How Wall Street Shafted Main Street and that corporate greed and political
corruption are undermining America, Pigs at the Trough, Arianna Huffington.
We are conditioned to believe everything is about money, power, greed and
corruption. Therefore we are not aware of the great lengths to which the six
companies that control 96% of the media go to sell a
non-conspiracy term) driven agenda. 
The really inconvenient truth is that TGFE regulate in the “best” interests
of the people. 
Altruism at the Federal Reserve
Pretend for a moment it is the beginning of the 20th century and you are one
of the founding members of the Fed,
You and your friends, along with the richest man in history,
Rockefeller, own or control one-sixth of the entire world’s wealth
world’s real wealth:
Would you trade your real wealth for the money you created out of thin air?
Would you give up your real wealth to provide the middle class with 75 years
of unprecedented prosperity in the houses, second houses, RVs, all that
“stuff” manufactured from the raw materials you owned or controlled in 1910?
Or would you give up your raw materials to employ the middle class in
building airplanes, ships, cars, RVs, SUVs, office buildings, freeways and
shopping malls from the raw materials you owned or controlled in 1910?
Let’s say you own a bar of gold and a Monopoly money printing press. Would
you trade that bar of gold for the Monopoly money you printed?
The monopoly money you loaned (gave) to the middle class (profane) was used
to consume, as in used up, the iron ore, bauxite, petroleum, copper, lead,
aluminum, plastics, glass and rubber that you had in 1910.
Even a child can understand you don’t get rich exchanging real wealth for
about $500 trillion of the Monopoly money you created over the last 75
Now that the U.S. National Debt is mathematically impossible to pay off, we
are left with only two alternatives:
issue our own currency and pay off
repudiate (default) on the debt. 
You don’t need a degree from an Austrian school of economics to realize who
is the biggest loser in this upside down
When I owe you
$120,000 dollars, I am in trouble
When I owe you $12 trillion dollars, you
are in trouble
Anyone who tells you that the American taxpayer, at any point over the past
75 years, “suffered/paid for/was inconvenienced” by our National debt needs
to have their foot put back in their mouth.
Since 1980, when Vice President
H.W. Bush (not Reagan) doubled the debt
during the Reagan administration, the tax rate has gone down. 
The Federal Reserve in Action (“ruining the country”)
When the American economy headed into a recession at the end of the dot-com
bubble, the Federal Reserve began slashing short-term interest rates until
they reached a historically low one percent.
The move re-inflated the
economy by allowing homeowners to extract $750 billion in equity from their
homes - up from $106 billion in 1996 - and apply the dollars toward a multitude
of consumer items and other credit card debt.
As interest rates plummeted and alleged home equity artificially soared,
buyers were able to afford first and second homes, and they did it by taking
out risky mortgages with “teaser rates” similar to those offered by the
credit card industry. Even as interest rates adjusted upward, the sponsoring
banks used complicated financial derivatives to resell the risky mortgages
as “asset-backed paper.”
As housing prices edged downward and mortgage rates inched upward, the
recession was put on hold with the help of an astonishing 10 to 12 credit
card offers per month being delivered to some consumer mailboxes.
card companies issued 1.5 billion cards to 158 million cardholders and
promised an improbable zero percent interest - some deals for up to 18 months.
(Similar to mortgage debt, the credit card debt is put into pools, also
known as derivatives, that are then resold to investment houses, other banks
and institutional investors.)
Direct and Indirect Money Creation
Not only is virtually the entire money supply created directly by the Fed,
but a mere handful of very big banks indirectly create hundreds of trillions
of dollars using a massive innovative “risky” investment scheme known as
“derivatives.” [Appendix A]
According to the Comptroller of the Currency, the books of U.S. banks now
carry over $180 trillion in the form of derivatives.
The derivatives represent the money created world-wide since 1910 - out of
thin air. About 40 percent of the $10.5 trillion U.S. national debt is owed
to the Fed.
But the loss to
TPTB, if the U.S. defaults on that debt, won’t
be $4.2 trillion or even $180 trillion, but about $500 trillion - money
created out of thin air over the past 100 years to pay for our consumer
To make absolutely sure we don’t ask any questions about where this massive
amount of monopoly money is coming from and who benefited, the banking
system has been contrived so that these big banks always [appear] to get
bailed out by the taxpayers when in actual fact TPTB directly and indirectly
is picking up the tab. 
The Federal Reserve is guilty of manipulating the short-term interest rates
and the money supply until October 2008, but the beneficiary of this almost
unlimited liquidity crime was the American consumer.
Was the 2008 Financial
Collapse An Inside Job? [Appendix A]
The Experts Know Something Is Wrong
On September 28, 2010, Rumor Mill News Radio host Rayelan Allen interviewed
noted author G. Edward Griffin.
Griffin tells Rayelan that the Fed is just a,
“gigantic legalized plunder machine”:
“It’s a machine that was put into place by the Federal Reserve Act in which
the banks, in this case the cartel, are able to able to legally plunder the
Later in the interview, Griffin contradicts himself when asked,
“how can a
bank fail when it creates money out of nothing and collects interest on it?”
“It seems like it would be impossible, but there is a downside to this
little trick. When the banks create money out of nothing and it goes into
circulation on their books they have to do a double entry; it’s an asset and
a liability at the same time.
It’s an asset because it produces income for them and it’s supposed to be
paid back, but it’s a liability because if it’s not paid back, they (The
Fed) have to pay it back.
That money has to be withdrawn from circulation and just as it is created
out of nothing it has to go back into nothing. It involves a bookkeeping
entry. It’s just a bookkeeping entry but it could be devastating to the
solvency of a company.
So… let’s not make this too long and complicated. Let’s say Mr. Smith borrows
3,000 dollars to buy one of those BIGGG wide screen TVs and the bank creates
the money out of nothing and gives it to him. Mr. Smith then gives the 3,000
dollars to the store that sold the TV and they give some of the money to the
company that manufactured the TV, and so on. That money is now in
circulation and is backed by debt.
The way the contract is supposed to work is that Mr. Smith pays the money
back gradually, a little bit every month, plus interest and at the end of
the process, the money has gone back out of existence back into the vaults,
or back into the inkwell.
So money is always going into existence and out of existence at the same
time, but it has to be paid back in order to go out of existence in an
If Mr. Smith suddenly decides he cannot or will not pay back his loan, then
that loan must be written off of the bank’s account and their assets reduced
by that 3,000 dollars. That means the value to the stockholders is reduced
by 3,000 dollars.
And, lo and behold, even though the money was created out of nothing in the
first place, somebody’s got that money and the bank has to pay it back or
the bank stockholders will have to pay it back.
So it’s really a devastating event. [Yes Ed, I agree it’s a devastating
event, but not for Mr. Smith, who is watching his $3,000 TV set]
When you keep loaning more than you should, if you are a bank, and you start
making unwise loans, and you loan far more money than the borrowers can
realistically pay…you loan hundreds of millions, if not billions of dollars
to large corporations that are going down, down, down and you know they
aren’t going to recover, but you loan them money anyway, or you loan
billions and billions to countries, third world countries you know aren’t
going to be able to repay, because their economies are getting worse every
year, but you loan them anyway... so why would a bank do that?”
Ed, we agree with you, why would a bank do that?
they wouldn’t - unless this is a gigantic legalized plunder machine to
legally plunder the real wealth (assets) of the men in front of, in between
and behind the Federal Reserve, TGFE.
Ron “Sound Money” Paul understands a fiat currency plunder machine:
“Our current system gives us a free ride, our paper (fiat currency) buys
cheap goods from overseas, and foreigners risk all by financing our
Ellen Brown, attorney and author of Web of Debt, adds her common cents:
“Our money system is not what we have been led to believe. The creation of
money has been “privatized,” or taken over by private money lenders. Thomas
Jefferson called them “bold and bankrupt adventurers just pretending to have
[True, before they did pretend in order to get control of 1/6th of
the world’s wealth. After 1913, they didn’t have to pretend.]
On the one, hand she explains:
“Banks create the principal but not the
interest to service their loans.”
But then she admits:
“To find the interest, new loans must continually be
taken out, expanding the money supply [actually creating even more debt,
potentially] inflating prices - and robbing you of the value of your money.”
However true, her statement is misleading. Ellen’s concern is about
hyperinflation, a real possibility in the future, but the “you” includes the
scoundrels behind the Federal Reserve, who will be the biggest losers.
While our miniscule savings (the U.S. has the lowest saving rate in the
world) will be wiped out by inflation, we’ll still have our $3,000 TV set.
What will TGFE be doing with their trillions? Trying to buy a loaf of bread.
Finally, Ellen notes that regardless of whether the interest is created or
not created, the net effect is always:
“Interest-free loans that are never paid off are basically free money. In
2008, 85% of the interest collected by the Federal Reserve was returned to
the Treasury. The average interest rate on Treasury securities today is only
about 3%; 15% of 3% is less than ½% - such a negligible interest as to make
the money nearly free.”
And on the cartel she has this to say:
“It is a cartel, designed to serve the banks. But the banks themselves are
the source of our credit, and we need credit. It is strange that everyone is
happy when credit is flowing and the good times are rolling; then we all
blame the banks when credit collapses, and say it was their fault for
letting credit flow so easily in a ‘bubble’.”
Ellen Brown, to her credit, focuses on a solution that would lead us to a
Click here to read about North Dakota, the only state
in the union to own its own bank.
Psychohistory - “the science of historical motivation”
Why would economists, politicians and historians continue with a
Corporatocracy rant they know to be false?
The answer can be found in the study of Psychohistory, “the science of
historical motivation,” and the principle of methodological individualism.
Broadbeck; Danto; Mandelbaum
Methodological individualism is the theory that,
“the ultimate constituents
of the social world are individual people. Every complex situation,
institution or event is the result of a particular configuration and the
interactions of groups - nations, gangs or tribes of political parties,
rational intelligent individuals, economists, and historians, have been
conditioned from birth (imprinted) to believe that everything wrong in our
society is about greed: the inordinate desire to acquire or possess more
than one needs or deserves, especially with respect to material wealth.”
The financial system wasn’t “a burden on the people,” that is, right after
TGFE got control of the money supply:
“They began to buy government securities at the rate of ten million dollars
a week for 10 weeks, and created one hundred million dollars in new
(checkbook) currency, which alleviated the critical famine of money and
credit, and the factories started hiring people again” Eustace Mullins.
Note: Before 1913, money equaled wealth. After 1913, money was fiat
currency, which did not equal wealth.
However, corporatocracy, greed, and the “follow the money” mentality
continued to shape the “dispositions and beliefs” of the politicians,
economists, and historians writing about the Federal Reserve because when
the Robber Barons acted in the “interests of the people” (until October
2008) it resulted in Cognitive Dissonance (CD).
CD is the discomfort felt at the discrepancy between what you already know
or believe, and new information or interpretation that contradicts a
strongly held belief system.
Without the framework of a conspiracy theory to explain the “new
information” of altruistic behavior, Mullins, Griffin, Paul and Brown had no
choice but to regress to a “greedy” explanation that for them was at least
All of The Media is Controlled
To make matters worse, the media engages in a nonstop barrage of negativity
and disinformation surrounding the “alleged” illegal and immoral acts
committed by the Corporatocracy. 
the media is controlled:
Not every item of news should be published. Rather must those who control
news policies endeavor to make every item of news serve a certain purpose,
Joseph Paul Goebbels, Nazi Propaganda Minister
However, when we are exposed to information we believe to be true (the
scoundrels steal our money), we don’t question the news item even if it is
false (the scoundrels don’t steal our money).
Alternatively, when we are exposed to information we believe to be false
(the scoundrels don’t steal our money), we don’t question the news item even
if it is true (the scoundrels don’t steal our money).
The reality is the scoundrels don’t steal our money.
But when we are exposed
to the mis and disinformation media campaign surrounding the Fed, we create
negative energy and wallow in self-pity instead of creating positive energy,
forming local sustainable communities like
Without the connection that the environmental damage and pollution were the
goal and not the unintended consequences of the Industrial Revolution and
our consumer society for Mullins, Griffin, Paul and Brown it was choice
between two absurd theories: Liberté, Enlightenté, Entitleté
The Evil Robber Barons are inept, clueless or just “stupid” because since
1913 they have exchanged their real wealth for $500 trillion of fiat
currency (Monopoly money) they printed so the middle class could have
houses, cars, RVs, TVs and DVDs - the “stuff” which put the planet, at the
“unknown points of no return”.
The Evil Robber Barons are benevolent and wanted the middle class to have
the highest standard of living for the last 75 years and didn’t know the
planet would be in “dire environmental straits because humanity’s footprint
[its environmental demand] is 21.9 hectares per person while the Earth’s
biological capacity is, on average, only 15.7 ha/person.”
Therefore, Mullins, Griffin, Paul and Brown chose to make the Evil Robber
Barons “the villains” we love to hate, rather than confuse the world.
 February 21, 2009 Ellen Brown writes:
“Funding the government’s budget
shortfall has usually been left to private lenders; but those loans are
drying up, and servicing them is proving expensive. Both this interest
burden and the need to continually attract new lenders could be avoided by
tapping into the government’s credit line at its own central bank.”
This!: Resolving a Spiraling Public Debt Crisis
However, since October 2008, The Bank of the Fed is Closed…Forever.
The Robinhood Barons are now making generous interest payments to the banks
for “parking” their TARP (The Troubled Asset Relief Program) and other
taxpayer bailout money instead of making loans to struggling Americans
living in their cars and in tent cities.
The Federal Reserve is paying banks
NOT to make loans to struggling Americans!, Dennis Kucinich (below video).
 Federal Reserve Directors: A Study Of Corporate And Banking Influence,
Published in 1976,
“Chart one reveals the linear connection between the
Rothschilds and the Bank of England, and the London banking houses which
ultimately control the Federal Reserve Banks through their stockholdings of
bank stock and their subsidiary firms in New York.
The two principal Rothschild representatives in New York, J. P. Morgan Co.,
and Kuhn, Loeb & Co. were the firms which set up the Jekyll Island
Conference at which the Federal Reserve Act was drafted, who directed the
subsequent successful campaign to have the plan enacted into law by
Congress, and who purchased the controlling amounts of stock in the Federal
Reserve Bank of New York in 1914.
These firms had their principal officers appointed to the Federal Reserve
Board of Governors and the Federal Advisory Council in 1914. In 1914 a few
families (blood or business related) owning controlling stock in existing
banks (such as in New York City) caused those banks to purchase controlling
shares in the Federal Reserve regional banks.”
The London Connection,
The World Pivoted On The Battle Of Waterloo
The vast accumulation of financial and natural resources of the
Rothschild Global Financial Empire is legendary.
“And there was no news more precious than the (predetermined) outcome at
Considered the turning point in history, exploiting the Battle of Waterloo
gave the Rothschild family complete financial control of Europe, and soon
after, the world.
According to one source, at the conclusion of the revolutions in the late
1800s and when the planet was still in ecological balance, “it was estimated
the House of Rothschild controlled almost half the wealth of the world.”
National Cyclopaedia d American Biography by Antony Sutton. The World Order
by Eustice Mullins, Staunton, VA: Ezra Pound Institute of Civilization,
Global Financial Elite (TGFE, a variation of
TPTB, a non-conspiracy
term coined by G. William Domhoff, a Research Professor at the University of
California ) are the Rothschilds of Europe, Lazard Freres (Eugene
Meyer), Kuhn Loeb Company, Warburg Company, Lehman Brothers, Goldman Sachs,
the Rockefeller family, and the J.P. Morgan interests.
These interests have
merged and consolidated in recent years, so that the control is much more
concentrated. National Bank of Commerce is now Morgan Guaranty Trust
Lehman Brothers has merged with Kuhn, Loeb Company, First National
Bank has merged with the National City Bank, and in the other eleven Federal
Reserve Districts, these same shareholders indirectly own or control shares
in those banks, with the other shares owned by the leading families in those
areas who own or control the principal industries in these regions.
“local” families set up regional councils, on orders from New York, of such
groups as the Council on Foreign Relations, The Trilateral Commission, and
other instruments of control devised by their masters. They finance and
control political developments in their area, name candidates, and are
seldom successfully opposed in their plans.
Secrets of the Federal Reserve,
The London Connection, Eustace Mullins
 Six Companies Own 96% of the World’s Media, National Vanguard Books, Who
Rules America? Who Controls The U.S. Media? G. William Domhoff, a research
professor at the University of California.
Corporatocracy, in social theories that focus on conflicts and opposing
interests within society, denotes a system of government that serves the
interest of, and may be run by, corporations and involves ties between
government and business.
Where corporations, conglomerates, and/or
government entities with private components control the direction and
governance of a country, including carrying out economic planning
notwithstanding the 'free market' label (http://en.wikipedia.org/wiki/Corporatocracy).
 Essays on how TGFE are losing billions.
12 Dec 2008 - Silver, But No Silver Lining
20 Dec 2008 - The Future of Silver- TELEPATHIC interview with Adam Smith
19 Nov 2009 - Show Me the Money
05 Nov 2009 - The Great U.S. Housing Market Foreclosure Robbery Of The 21st
20 Nov 2009 - Farms, Hamburgers, and “Free” Enterprise
 It is now mathematically impossible for the U.S. government to pay off
the U.S. national debt. The truth is that the U.S. government now owes more
dollars than actually exist directly and indirectly to the Federal Reserve.
Even if the U.S. government were to go out and take every single piece of
monopoly money from every single American bank, business and taxpayer, they
would still be massively in debt.
Former comptroller general of the GAO, David Walker, estimates it will
require over 10% growth from now until the end of time; something that has
never happened, will never happen and is little more than a pipe dream.
 Two weeks after taking office, Reagan addressed the nation on the
economy as such:
“By 1960 our national debt stood at $284 billion. Today the debt is $934
billion. We can leave our children with an un-repayable massive debt and a
shattered economy, or we can leave them liberty in a land where every
individual has the opportunity to be whatever God intended us to be.
Together we can forge a new beginning for America.”
In the same speech, Reagan displays his innocence of Federal Reserve
“Now, in all of this we will, of course, work closely with the
Federal Reserve System toward the objective of a stable monetary policy.”
On March 26, 1981 Reagan signs Executive Order 12301 establishing the
Presidential Council on Integrity & Efficiency to review federal programs
for inefficiencies and corruption.
Predictably, four days later, the Federal Reserve and H.W. Bush “works with”
John Hinckley Jr. to instruct Reagan on the first lesson of Federal Reserve
politics. A president can be more popular than the vice president, but not
always more powerful.
Although the Bush and Hinckley family had long, close ties overlooked by the
press - the brother of the man who tried to kill the president was acquainted
with the son of the man who would have become president if the attack had
been successful - the family connection between Scott Hinckley and Neil Bush
did not escape Alexander Haig, who, after the Reagan assassination attempt,
temporarily prevented Vice President Bush from taking control of the White
Reagan learned the lesson: he was a figurehead relegated to witnessing the
growth of America’s hyper-consumer society and national debt from the
Click here to read the truth about the tax rate and why the Taxpayers are
not paying for the Bailouts.
 The Fed has been a hotbed of radically experimental activity in the past
year. Ben Gisin is a former banker who has long been tracking the Fed’s
statistical releases. He says he has never seen anything like it. Assets
have been magically appearing on the Fed’s balance sheet, and they are not
coming from any traditional source.
What is extraordinary is that the money is being used to make commercial
loans. Consider the radical moves the Fed has already been taking in the
last year. Without so much as a by-your-leave from Congress, the Fed just
“monetized” $1.2 trillion in private debt, turning commercial loans into
If private banks and private corporations now have multi-billion dollar
credit lines with the Federal Reserve, then Congress should have one too. In
fact Congress, which gave the Fed its charter to create the national money
supply, should have been the first in line. If the Fed Can “Monetize”
Private Debt, It Can Monetize Public Debt, Ellen Brown
 Rockefeller's own Standard Oil Co. The Ford Foundation was originally
created from Henry Ford's Auto Manufacturing fortune.
members of the “Order of Skull and Bones” infiltrated the foundation and
used it's financial power to influence the nature of public education.
- Antony C. Sutton,
America’s Secret Establishment.
 Honorable Louis McFadden, Chairman of the House Banking and Currency
Committee, was still under the Robber Baron spell in the 1930s when he
“Some people think that the Federal Reserve Banks are United States
Government institutions. They are private monopolies which prey upon the
people of these United States for the benefit of themselves and their
foreign customers; foreign and domestic speculators and swindlers; and rich
and predatory money lenders.”
 G. William Domhoff, a Research Professor at the University of
California, Santa Cruz first coined the non-conspiracy acronym
received his Ph.D. at the University of Miami and has been teaching at the
University of California, Santa Cruz, since 1965.
Four of his books are
among the top 50 best sellers in sociology for the years 1950 to 1995:
Rules America? (1967)
The Higher Circles (1970)
Who Rules America Now?
the non-“conspiracy” critique and theory of the U.S. power
structure, The Powers That Be (TPTB) in 1979
...for 'The Federal Reserve: Stupid Bank Robbers or Robber “Hood”
Barons - A Psychohistory Analysis'
December 26, 2010
The Story of Stuff, an animated video about the underside of our consumer
society, believes the scoundrels are a bloated corporation sporting a top
hat with a dollar sign etched on its front.
Film narrator, Annie Leonard argues our environmental damage is the result
of the greedy corporations externalizing costs (shift them onto the public
and the environment) so they can make more money.
But that premise is contradicted on film when Annie stands in line to buy a
radio for $4.99 and correctly realizes the price couldn’t possibly capture
the cost of the radio but incorrectly concludes that the greedy corporations
pollute the environment so they can make more profit. 
If profits were the motive, then why wasn’t the radio $5.99? A price anyone
would consider a “throw away” or loss leader.
We have come to believe that everything wrong in America is about someone
getting rich while we are getting swindled.
That our economy runs on profits is a true statement, but imagine how much
those moneygrubbers would have made if the radio was $5.99.
That $1.00 would be 100% pure profit.
The swindlers and scoundrels downward-manipulate the costs of what was in
1910 their real wealth:
Raw materials, commodities, copper, iron ore, petroleum, lead, silver and
gold, to industry at prices lower, not higher as you would expect, so the
corporations can still make a profit selling you a radio for $4.99.
Downward-manipulation is an uneconomic aberration discovered in the precious
metals market by the noted silver analyst Ted Butler.
We are conditioned to believe that prices are always inflated so the greedy
corporations can make more money but Ted Butler’s research confirmed the
price of silver has been manipulated to stay at the $4-5 price range for
years. The beneficiaries of this type of manipulation are the consumers
since industrial users can sell their products cheaply and still make a
profit. (The Myth of the “Free” Enterprise Economic System)
Behind every consumer society is the reality of a credit-based monetary
system and a fiat currency.
Behind every fiat currency is a Federal Reserve
or a Central Bank controlled by The Global Financial Elite including,
Rockefeller, Kuhn, Loeb and J.P. Morgan, Ted Butler’s prime suspect in the,
“ongoing intentional not accidental” great crime of keeping the price of
silver low so consumers can buy a lot more ‘radio’ (silver) for their
(The Real Story, Theodore Butler, Silver But No Silver Lining)
Annie should be asking herself why those scoundrels intentionally sold their
raw materials cheaply so just about everyone could afford the American
Dream, a nightmare for the Planet.
Was the 2008 Financial Collapse An Inside
TGFE have a number of tricks up their sleeves to make consumerism
Butler’s investigation has identified JP Morgan Chase, one of the founding
members of the Federal Reserve, as the prime suspect, in the “ongoing
intentional, not accidental” great crime of keeping the price of commodities
low so the middle class can afford the American dream, a nightmare for the
planet. The Real Story, by Theodore Butler
[From Chapter 1 of
Secrets of the Federal Reserve The London Connection
On the night of November 22, 1910, a group of newspaper reporters stood
disconsolately in the railway station at Hoboken, New Jersey. They had just
watched a delegation of the nation’s leading financiers, leave the station
on a secret mission.
It would be years before they discovered what that mission was, and even
then they would not understand [the mission or] that the history of the
United States underwent a drastic change as the financiers compiled a
scientific currency system for the United States, the real birth of the
present Federal Reserve System.
The Jekyll Island Club was chosen as the place to draft the plan for control
of the money and credit of the people of the United States, not only because
of its isolation, but also because it was the private preserve of the people
who were drafting the plan.
The New York Times later noted, on May 3, 1931, in commenting on the death
of George F. Baker, one of J.P. Morgan’s closest associates, that “One-sixth
of the total wealth of the world was represented by the members of the
Jekyll Island Club.” Membership was by inheritance only.”
Why all the secrecy? Why this thousand mile trip in a closed railway car to
a remote hunting club? Ostensibly, it was to carry out a program of public
service, to prepare banking reform which would be a boon to the people of
the United States, which had been ordered by the National Monetary
The participants were no strangers to public benefactions. Usually, their
names were inscribed on brass plaques, or on the exteriors of buildings
which they had donated. This was not the procedure which they followed at
Jekyll Island. No brass plaque was ever erected to mark the selfless actions
of those who met at their private hunt club in 1910 to improve the lot of
every citizen of the United States.
In fact, no benefaction took place at Jekyll Island. The Aldrich group
journeyed there in private to write the banking and currency legislation
which the National Monetary Commission had been ordered to prepare in
public. At stake was the future control of the money and credit of the
If any genuine monetary reform had been prepared and
presented to Congress, it would have ended the power of the elitist one
world money creators. Jekyll Island ensured that a central bank would be
established in the United States which would give these bankers everything
they had always wanted.
[End excerpt from Chapter 1 of Secrets of the
Revisionist History suggests that benefaction did in fact take place at
The huddled masses should be thanking those scoundrels at the Federal
Reserve for 75 years of banking and currency regulations:
"It resulted in
unprecedented prosperity, but don’t forget to blame them because the
American dream, according to the GEO4, a massive United Nations Report, put
the planet at the unknown points of no return.”
Claims about historically significant amount of wealth
According to the New York Times obituary,
“it was estimated after Mr.
Rockefeller retired from business that he had accumulated close to
$1,500,000,000 out of the earnings of the Standard Oil trust and out of his
other investments. This was probably the greatest amount of wealth that any
private citizen had ever been able to accumulate by his own efforts.”
Notwithstanding these varied aspects of his public life, Rockefeller may
ultimately be remembered simply for the raw size of his wealth.
In 1902, an
audit showed Rockefeller was worth about $200 million - compared to the total
national GDP of $101 billion then. His wealth continued to grow
significantly (in line with U.S. economic growth) after as the demand for
gasoline soared, eventually reaching about $900 million on the eve of WWI,
including significant interests in banking, shipping, mining, railroads, and
By the time of his death in 1937, Rockefeller’s remaining
fortune, largely tied up in permanent family trusts, was estimated at $1.4
billion. According to some methods of wealth calculation, Rockefeller’s net
worth over the last decades of his life would easily place him as the
wealthiest known person in recent history.
As a percentage of the United
States’ GDP, no other American fortune - including Bill Gates or Sam
Walton - would even come close.
The process that the Federal Reserve, or any bank, uses to create money,
“consists of making an entry in a book, that is all,” says Graham Towers,
governor of the Bank of Canada. “Each and every time a bank makes a loan (a
debt)... new bank credit is created - brand new money.”
While a gold-backed currency and even greenbacks have their limits, the
Bonesmen’s manufactured bank money has no commoditization potential and
therefore no limit.
Making matters worse, the central banks are allowed to
charge interest on borrowed money that never existed in the first place. The
money we borrow from the Federal Reserve is money created out of thin air,
which we use to buy stuff, but we have to pay interest on those loans, and
this becomes what is known as the national debt.
Congressman Jerry Voorhis, writing in 1973, explained how monetary expansion
is built on the 10% reserve requirement imposed by the Fed:
“For every $1 or $1.50 which people - or the government
- deposit in a bank,
the banking system can create (out of thin air and by the stroke of a pen)
some $10 of checkbook money or demand deposits. It can lend all that $10
into circulation at interest just so long as it has the $1 or a little more
in reserve to back it up.”
That means that if the Federal Reserve were operating like a commercial
bank, it could take its $500 billion in U.S. securities and fan them into $5
trillion in loans; and that appears to be exactly what it has been doing.
Money control, Gustav Stolper wrote in “This Age of Fables” is,
and most comprehensive of all governmental controls” and the 1838 quote: “Permit me to issue and control the money of a nation, and I care not who
makes its laws” (Incorrectly attributed to Mayer Amschel Rothschild who died
in 1812), reflects the “maxim” of the House of Rothschild.
However, “money lenders of the Old World” cannot be talking about profits
unless you believe. The Rothschilds didn’t understand that they were about to
give up $500 trillion of real wealth in exchange for $500 trillion pieces of
worthless fiat currency.
During the last 100 years, those swindlers and scoundrels were able to
distort the structure of relative prices; generate misallocations of labor
and capital throughout the economy; rationalize new governmental
interventions in the face of the market “instability” manipulate the
patterns of and the profits from international trade which resulted in the
Industrial Revolution, the Great Depression, the stagflation of the 1970s,
the dot-com and the housing market bubbles and unprecedented prosperity for
the middle class.
Would we have a financial crisis to go with our environmental crisis if
Wilson hadn’t ruined the country when he gave away the people’s right to
print their own money and we had our own bank?
North Dakota is the only state in the union to own its own bank. The
North Dakota (BND) was established by the state legislature in 1919
specifically to free farmers and small businessmen from the clutches of
out-of-state bankers and railroad men.
The state of North Dakota, one of only two states (along with Montana)
expected to meet its budget in 2010. North Dakota was also the only state to
actually gain jobs in 2009 while other states were losing them. Since 2000,
North Dakota’s GNP has grown 56 percent, personal income has grown 43
percent and wages have grown 34 percent. North Dakota in 2009, had a budget
surplus of $1.3 billion, the largest it ever had - in a state with a
population of 700,000. (The North Dakota Model for Capitalizing Community
North Dakota, a land of small farms and towns more interested in remaining a
successful experiment in democracy rather than an economic power.
At this point, it is advantageous to consider the efforts of writer
“The Rothschilds have been in control of the world for a very long time,
their tentacles reaching into many aspects of our daily lives, and are the
hidden hand behind all the social cataclysms in history: The French and
American Revolution, the Civil War, World Wars, the Industrial Revolution,
the Federal Reserve (and our consumer society).”
John Sherman, a Rothschild protégé in a letter sent to New York bankers on
June 25, 1863, in support of the then proposed National Banking Act, wrote:
“The few who understand the system, will either be so interested in its
profits, or so dependent on its favors that there will be no opposition from
that class, while on the other hand, the great body of people, mentally
incapable of comprehending the tremendous advantages… will bear its burden
without complaint, and perhaps without suspecting that the system is
inimical to their best interests.”
(World War II And Pound, 1940-1945: The
Anti-Semite Revealed, Ellen Cardona)
In other words, the “few that understand the system”, without a 20th century
environmental perspective of the middle class “trashing the planet”, would
not be capable of comprehending a system that would put the planet at the
“unknown points of no return” because the environmental damage and pollution
was the goal and not the unintended consequences of the Industrial
Revolution and our consumer society.
The Federal Reserve Act of 1913
One of the most important domestic acts in the nation’s history took the
power to create money from the people and gave it to the robber barons of
our filtered history books, in theory, for profit.
The Federal Reserve was instrumental in the development of America into a
The United States, in its first decades, was a land of small farms and
nearby towns with few cities of any consequence. The young nation seemed far
more interested in becoming a successful experiment in democracy, rather
than an economic power.
A central bank, necessary for a consumer society, large cities, a common
medium of exchange and a mechanism to regulate that medium were greeted with
hostility, since many of the nation’s leaders disdained the urban life.
Anyone who spoke against the “Creature from Jekyll Island” by G. Edward
Griffin was silenced.
Presidents Garfield and McKinley, outspoken champions of “sound” money and
opponents of a central bank, were suspiciously silenced permanently.
The conflict between rural values and urban reality ended when Woodrow
“unwittingly ruined his country” and signed into law the legislation
that put “the growth of the nation... and all our activities in the hands
of a few scoundrels (men).”
Once those scoundrels got control of the supply of money in the Franklin
Roosevelt Administration, they began to buy government securities at the
rate of ten million dollars a week for 10 weeks, and created one hundred
million dollars in new (checkbook) currency, which alleviated the critical
famine of money and credit, and the factories started hiring people again.
(Secrets of the Federal Reserve, Eustace Mullins)
Now, those scoundrels remain in control of the supply of money in the
Obama Administration, they are making generous interest payments to the
banks for “parking” their TARP and other government taxpayer bailout money,
which is aggravating the critical famine of money and credit, and the
factories started laying people off (263,000 people in September bringing
the total to 39 million Americans who are no longer working or looking for
One of the more absurd notions that found its way into the history books and
the writings of economic experts, is that somehow these Robinhood barons
(swindlers and scoundrels of history) were made wealthier by manipulating
the Monopoly money they created out of “thin air” used to “alleviated the
critical famine of money and credit” so the factories could start hiring
people again and finance our consumer society.