Council on Foreign Relations and The Federal Reserve

The Joint Chiefs of Staff DoD Publication 1 (1987) Glossary of Department of Defense Military Associated Terms defines:

"COVERT OPERATIONS: (DoD, Interpol, Inter-American Defense Board) Operations which are so planned and executed as to conceal the identity of or permit plausible denial by the sponsor. They differ from clandestine operations in that emphasis is placed on concealment of identity of sponsor rather than on concealment of the operation."

The Council on Foreign Relations has used covert operations to conceal their identity while methodically taking control of the Department of State, Central Intelligence Agency, and the Executive, Legislative, and Judicial branches of the Government. The Council on Foreign Relations established and controls the Federal Reserve System.

The Federal Reserve System has a profound effect on the United States and World economies.

  • Why haven’t any Nobel prize winning Economists noticed the warping of Federal Reserve Systems history; and concealment of the Council on Foreign Relations sponsorship and control?

  • Why haven’t any Nobel prize winning economists explained to the American public what effect one small groups control of the Federal Reserve System can have?

  • How does control of the Fed by one small group change many Nobel prize winning economic theories?

  • Does controlling the Federal Reserve System help to explain why Council on Foreign Relations members have amassed 75% of the nations industrial and financial assets?

  • Does the Council on Foreign Relations practice a type of insidious McCarthyism where individuals do not get the chance to have their side of the story heard or face their accuser?

  • Does the Council on Foreign Relations secretly blacklist scholars, and members of the media who connect their sponsorship to historical events?

  • Does the Council on Foreign Relations discredit and destroy the careers of such people?

  • Does the Council on Foreign Relations see to it that such people cannot get their material published or distributed?

The way the CFR works is clearly explained by the famous journalist Walter Lippmann. Lippmann was a member of the mysterious Round Table Group; editor of the publication THE NEW REPUBLIC; member of America’s first intelligence organization the INQUIRY; the official interpreter of the meaning of Woodrow Wilson’s Fourteen Points to the British Government; attended the Paris Peace Conference after World War I; and a Council on Foreign Relations founding father.1

Chapter I, of Lippmann’s book, PUBLIC OPINION is titled "The World Outside and the Pictures in Our Heads." Lippmann, writes,

"This then, will be the clue to our inquiry. We shall assume that what each man does is based not on direct and certain knowledge, but on pictures made by himself or given to him. If his atlas tells him that the world is flat he will not sail near what he believes to be the edge of our planet for fear of falling off. If his maps include a fountain of eternal youth, a Ponce de Leon will go in quest of it. If someone digs up yellow dirt that looks like gold, he will for a time act exactly as if he had found gold. The way in which the world is imagined determines at any particular moment what men will do. It does not determine what they will achieve. It determines their effort, their feelings, their hopes, not their accomplishments and results. The very men who most loudly proclaim their "materialism" and their contempt for "ideologues," the Marxian communists, place their entire hope on what? On the formulation by propaganda of a class-conscious group. But what is propaganda, if not the effort to alter the picture to which men respond, to substitute one social pattern for another? What is class consciousness but a way of realizing the world? National consciousness but another way? And Professor Giddings’ consciousness of kind [ i.e. stereotypes ], but a process of believing that we recognize among the multitude certain ones marked as our kind?"2

Lippmann’s conclusion is,

"I argue that representative government, either in what is ordinarily called politics, or in industry, cannot be worked successfully, no matter what the basis of election, unless there is an independent, expert organization for making the unseen facts intelligible to those who have to make the decisions...My conclusion is that public opinions must be organized for the press if they are to be sound, not by the press as is the case today. This organization I conceive to be in the first instance the task of a political science that has won its proper place as formulator, in advance of real decision, instead of apologist, critic, or reporter after the decision has been made..."3

The Council on Foreign Relations is the "independent, expert organization" Lippmann is suggesting. Lippmann is advocating the creation of a totalitarian state. If one small group is permitted to control public opinion, that small group can use their power to benefit the aims of the group rather than the public at large. People’s actions are strongly influenced by their knowledge base. People act on their beliefs. By corrupting a persons knowledge base you can manipulate their actions.

Around 1935 men such as George Gallup, Elmo Roper and Archibald Crossley, were studying opinion polling as a tool to help social scientists and psychologists study genuine problems, to learn how people looked at things, and to better understand why people of various backgrounds, interests, loyalties, and information levels held certain opinions. The Council on Foreign Relations funded early work on polling. The Council would use knowledge gained from polls to help script and determine the effectiveness of psycho-political operations. Gallup’s and Roper’s surveys appeared in Fortune magazine. After the war Truman would choose the Director of Fortune magazine to become head of Economic Security Policy for Europe. The Director was a Council on Foreign Relations member named John Kenneth Gailbraith. Elmo Roper would become deputy Director for the Office of Strategic Services in World War II. The Office of Strategic Services would become the Central Intelligence Agency.4

In UNWRITTEN TREATY [ Warburg, James P., Harcourt, Brace and Co., NY 1946 pg 15-16], Council on Foreign Relations member James P. Warburg writes,

" It cannot be stated with sufficient emphasis that information is one thing - propaganda quite another.

The purpose of spreading information is to promote the functioning of man’s reason.

The purpose of propaganda is to mobilize certain of man’s emotions in such a way that they will dominate his reason...

The function of an information agency is to disseminate truth - to a make available fact and opinion, each carefully labeled and separated from the other. The aim of an information agency is to enable as many people as possible to form their own individual judgments on the basis of relevant fact and authoritative opinion.

The function of a propaganda agency is almost the exact opposite: it is not to inform, but to persuade. In order to persuade it must disseminate only such fact, such opinion, and such fiction masquerading as fact as will serve to make people act, or fail to act in the desired way."

James Paul Warburg was a financier, author, and government official. In 1939 Warburg was strongly opposed to American isolationism and neutrality. He became a leading spokesman for the Committee to Defend America by Aiding the Allies. He helped found the Fight for Freedom Committee, which called for American entry into World War II. In 1941, in Madison Square Garden he debated Charles Lindbergh of America First, an isolationist organization. Warburg was appointed special assistant in the Office of Coordinator of information. In 1942 he was appointed deputy director of the overseas branch of the Office of War Information in London with responsibility for propaganda aimed at the Axis powers and occupied European Nations. The name of Warburg’s agency is meant to confuse and mislead. According to Warburg’s distinction between information and propaganda, The Office of War Information should have been named the Office of War Propaganda.5

The Office of Coordinator of Information was created in 1941. One purpose of the agency was to pool information gathered by all of the Intelligence Services. The second purpose of the agency was psychological warfare. The Office of Coordinator of Information mobilized the talents of psychoanalysts across the country to study domestic morale, and the effects of psychological warfare techniques on morale. At the same time it also studied Hitler and his influence on the German people. Sometime in 1942 the agency was reorganized into two independent agencies -- the Office of Strategic Services and the Office of War Information. The psychological warfare study was in the domain of the Office of War Information.6

James P.’s father, Paul M. Warburg was a founding father of the Council on Foreign Relations and the Federal Reserve system. To this day the Federal Reserve system is staffed and run by Council on Foreign Relations members. Conspicuously absent from history books, and economic courses are any mention of the role of the Council on Foreign Relations in establishing and running the Federal Reserve System.

In "The Anglo American Establishment," Carroll Quigley writes,

"The Rhodes Scholarships, established by the terms of Cecil Rhodes seventh will, are known to everyone. What is not so widely known is that Rhodes in five previous wills left his fortune to form a secret society, which was to devote itself to the preservation and expansion of the British Empire. And what does not seem to be known to anyone is that this secret society was created by Rhodes and his principal trustee, Lord Milner and continues to this day [1949]...This society has been known at various times as Milner’s Kindergarten, as the Round Table Group, as the Rhodes crowd, as The Times crowd, as the All Souls group, and as the Cliveden set." 7

The Council on Foreign Relations was formally established in Paris in 1919 along with its British Counterpart the Royal Institute of International Affairs. The Council on Foreign Relations and Royal Institute of International Affairs can trace their roots back to Rhodes secret society. Rhodes became fabulously wealthy by exploiting the people of South Africa. Rhodes is the father of Apartheid.

Many American members were American intelligence officers that belonged to the first American Intelligence Agency -- THE INQUIRY. Many British members were British Intelligence Agents. THE INQUIRY and its members, who included such notable Americans as Col. Edward Mandel House, Walter Lippmann, Isaiah Bowman, and James Shotwell, wrote most of Woodrow Wilson’s 14 points. The INQUIRY members attended the Paris Peace conference and traded off most of the Fourteen Points to establish the League of Nations. Wilson was so disturbed by the INQUIRY’s betrayal he suffered a stroke and physical collapse and refused to speak to his influential advisor INQUIRY member Edward House ever again. The American people refused to join the League of Nations, because they did not want to belong to an organization that could force America to go to war and whose intent was to be an international police force.

Col. House was an active member of the American Round Table Branch before becoming a Council on Foreign Relations founding father. House would play a key role in establishing a Graduated Income tax and the Federal Reserve System.

In 1886 a group of East Coast Millionaires including William Rockefeller, Joseph Pulitzer, J.P. Morgan, Henry Goodyear, and Edwin and George Gould bought Jekyll Island, Georgia, for $125,000. They named themselves the Jekyll Island club. The activities of some of the members changed world events. By the early 20th century Jekyll Island Club members represented 1/6th of the world’s wealth. 8

On March 13, 1907 a financial panic was triggered by rumors that the Knickerbocker Bank, and The Trust Company of America were about to become insolvent. The rumors were started by the House of Morgan. There was a run on the banks. Morgan helped to avert the panic he helped to create. Morgan imported $100 million worth of gold from Europe to stop the run on the banks. This exercise was a Round Table psycho-political operation. It provided America with the perception and rationalization that what the United States needed was a central banking system.9

The Senate created the National Monetary Commission to study the problem. Senator Nelson Aldrich (John D. Rockefeller’s father-in-law) headed the commission. To investigate the matter the Commission toured the continent of Europe to study the European central banking system. Aldrich didn’t have any banking experience. It took nearly two years and $300,000 of tax-payer money to wine and dine the men of the European central banking system before the committee was able to complete their study. Towards the end of 1910, a group of men held a secretive meeting on Jekyll Island, Georgia. 10

The purpose of the 1910 Jekyll Island meeting was to write the final recommendations for the National Monetary Commission report. Senator Aldrich arranged the meeting. The men who attended included:

  • Henry P. Davison (House of Morgan - J.P. Morgan and Co.)

  • Benjamin Strong (House of Morgan - Bankers Trust Co.)

  • Frank A. Vanderlip (House of Rockefeller - National City Bank )

  • A. Piatt Andres (Assistant Secretary of the Treasury)

  • Paul Warburg ( House of Warburg and House of Khun-Lobe & Co.)

According to the memoirs of Frank Vanderlip,

"Despite my views about the value to society of greater publicity for the affairs of corporations, there was an occasion, near the close of 1910, when I was as secretive - indeed as furtive - as any conspirator... I do not feel it is any exaggeration to speak of our secret expedition to Jekyll Island as the occasion of the actual conception of what eventually became the Federal Reserve System."

Congress acted on the report and created the Federal Reserve act which President Woodrow Wilson signed on 23 December 1913. 11

In December of 1963, on the fiftieth anniversary of the Federal Reserve, the fifth edition of a book titled, "THE FEDERAL RESERVE SYSTEM: PURPOSES AND FUNCTIONS," was printed. As with earlier editions, the stated purpose of the book was "to better public understanding of the System’s trusteeship for the nations credit." The real purpose of the book was not to inform but to persuade Americans to accept the massive control the Federal Reserve had upon the American Economy. A small group of Americans, the Council on Foreign Relations, was using psychological warfare techniques not only as a means of systematic nationalistic aggression, but as a means of deceiving their own countrymen. 12

The 50th anniversary edition, and the former editions, were collaborative products of the Federal Reserve Board of Governors staff. The book tells us that the Federal Reserve’s, "original purposes, as expressed by its founders, were to give the country an elastic currency, to provide facilities for discounting commercial paper, and to improve the supervision of banking." It then explains, "From the outset, there was recognition that these original purposes were in fact parts of broader objectives, namely, to help counteract inflationary and deflationary movements, and to share in creating conditions favorable to a sustained, high level of employment, a stable dollar, growth of the country, and a rising level of consumption. "13

That the broader objectives were recognized from the outset are anything but clear. The first edition of "THE FEDERAL RESERVE SYSTEM: PURPOSES AND FUNCTIONS" wasn’t printed until a quarter of a century after the founding of the Fed. The first edition was printed in May of 1939 just as the World was about to go to war. The stress of war made it easier to persuade people to accept the broader objectives of the Federal Reserve system. The threat of world war made the threat of a Central Bank inconsequential. The first edition of the book was part of a ongoing massive propaganda campaign financed with tax-payer money and focused at the average American citizen. These campaigns are nothing more then psychological warfare operations written about by James Paul Warburg.

In "THE FEDERAL RESERVE SYSTEM: PURPOSES AND FUNCTIONS," we learn, the Federal Reserve is a corporation, accountable to the United States government, but owned by banks which have purchased shares of stock.

  • The Federal Reserve Bank is the bankers banker. If a commercial or savings bank wants to lend more money to customers, it borrows money from its bank - the Federal Reserve.

  • The Federal Reserve is a watchdog that audits every banks records to make sure loan decisions are based on sound judgments and that regulations are being followed.

  • The Federal Reserve is the controller of the currency, the US Governments bank where the Treasury has its bank account.

  • The Federal Reserve is the nation’s check-clearing system - processing over 15 billion checks a year.

  • The Federal Reserve is the keeper of the worlds gold.

  • The gold is kept in a vault at the New York Federal Reserve bank.

  • Most of the gold stored in the Fed belongs to other nations and represents about one-third of the official gold reserves of the the world’s non-communist countries.14

In "THE FEDERAL RESERVE SYSTEM: PURPOSES AND FUNCTIONS," we learn, the Federal Reserve is run by a seven-member board of Governors appointed by the President and confirmed by the Senate. Terms of office last 14 years to insulate governors from political pressures. Terms are staggered, with one expiring every two years. There’s one chairman and one vice-chairman, both of whom hold terms of four years. The seven members of the board of Governors, the President of the Federal Reserve bank of New York, and four other Federal Reserve Bank Presidents are members of a group called the Federal Open Market Committee. This Committee is responsible for the purchase and sale of government securities. That means they are responsible for influencing the cost and availability of money and credit.15

Conspicuously absent from "THE FEDERAL RESERVE SYSTEM: PURPOSES AND FUNCTIONS ," is any mention of the role of the Council on Foreign Relations in establishing and running the Federal Reserve System; and the power the Council on Foreign Relations (or any small group) would realize by controlling the FED. While long terms on the board of governors were established to to insulate governors from political pressures no safeguards were established to insulate governors from pressures from a private group such as the Council on Foreign Relations.

The Federal Reserve, through its influence on credit and money, affects indirectly every phase of American enterprise and commerce and every person in the United States. In 1924 Reginald McKenna chairman of the Board of Midland Bank, and former British Chancellor of the Exchequer (i.e. head of the Central Bank of England 1915-16), told Midland Bank stockholders in England,

"They who control the credit of a nation direct the policy of governments and hold in their hands the destiny of the people."

Midland Bank was established by the head of the Round Table, Lord Alfred Milner. Mckenna’s insight into power of "they who control the credit of a nation" is not mentioned in "THE FEDERAL RESERVE SYSTEM: PURPOSES AND FUNCTIONS ."16

In 1913, CFR founding father Colonel House helped pick the charter members of the original Federal Reserve Board. Among those chosen were Paul Warburg [ House Warburg and House of Khun-Lobe & Co. ] and Benjamin Strong [ House of Morgan and House of Khun-Lobe & Co. ]. House, Warburg, and Strong were American Round Table group members. According to
Round Table Group historian, Carroll Quigley, the aim of the dynastic banking houses was,

"...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 fashion by the central banks of the world acting in concert, by secret agreements arrived at in frequent private meetings and conferences. The apex of the system was to be the Bank for International Settlements in Basle, Switzerland, a private bank owned and controlled by the world’s central banks which were themselves private corporations. Each central bank , in the hands of men like Montague Norman of the Bank of England, Benjamin Strong of the New York Federal Reserve Bank, Charles Rist of the Bank of France, and Hjalmer Schact of the Reichs 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."17

Montague Norman was a member of the British Round Table Group, Benjamin Strong was a member of the American Round Table Group. According to Quigley,

"Strong owed his career to the favor of the Morgan Bank, especially of Henry P. Davison, who made him secretary of Bankers Trust Company of New York (in succession to Thomas W. Lamont) in 1904, used him as Morgan’s agent in the banking rearrangements following the crash of 1907, and made him vice-president of the Bankers Trust (still in succession to Lamont) in 1909. He became governor of the Federal Reserve Bank of New York as the joint nominee of Morgan, Kuhn, Loeb and Co. in 1914. Two years later, Strong met Norman for the first time, and they at once made an agreement to work in cooperation for the financial practices they both revered."18

Alan Greenspan, Paul Volcker, G. William Miller, and William McChesney Martin have all chaired the Federal Reserve board. All are members of the Council on Foreign Relations. As of September 1993, the Congressional Budget Office estimated that handling losses in failed savings and loan institutions would cost $120 billion from 1990 through 1998 (this figure does not include $60 billion spent before 1989). The loss figure has recently been reported to be over $250 billion, double the original estimate. Among those found guilty of bank fraud were Neil Bush and Lance Benson. Neil is the son of CFR member George Bush, Lance is the son of CFR member Bill Clinton’s Secretary of the Treasury Lloyd Benson. Despite being found guilty of fraud Neil Bush and Lloyd Benson escaped punishment and didn’t pay back any money. So much for taking responsibility for ones actions! Wasn’t one of the jobs of the Federal Reserve to be watchdog?

In 1987 leaders of America’s major banks went to Tokyo. They met with our finance minister and governor of the central bank. They urged more positive cooperation by Japanese banks. The big American banks were caught in the dilemma of their Latin American Debt. On the one hand, they had to suffer the losses caused in part by their own over-lending, which meant they could not continue being exposed to new loans to Latin America. On the other hand, they were unable to jettison Latin America, which for them was an important market. The leaders of the banks attending the meeting were,

  • John Reed of Citibank

  • Willard Butcher of Chase

  • Lewis Preston of Morgan

  • Tom Clausen of the Bank of America

  • Reed, Butcher and Preston are all members of the Council on Foreign Relations

The United States Code contains the general and permanent laws of the United States. The United States Code is prepared and published by the Office of the Law Revision Counsel of the House of Representatives. The laws have been classified into fifty categories. A category is called a Title. For example, laws pertaining to the President are found in Title 3 The President. Title 12 is called Banks and Banking. A reading of laws contained in Title 12 back up the statement that Congress has not given authority for determining money policy to the Federal Reserve System.

Title 50 War and National Defense clearly spells out such a role for the Federal Reserve. Title 50 Section 101 is the National Security Emergency Preparedness Policy. In this policy in Part 15 - Department of the Treasury in Section 1501 Lead Responsibilities we find that

  • "the Secretary of the Treasury shall:

    • (1) Develop plans to maintain stable economic conditions and a market economy during national security emergencies; emphasize measures to minimize inflation and disruptions; and minimize reliance on direct controls of the monetary, credit, and financial systems. These plans will include provisions for:

      • (a) Increasing capabilities to minimize economic dislocations by carrying out appropriate fiscal, monetary, and regulatory polices and reducing susceptibility to manipulated economic pressures

      • (b) Providing the Federal Government with efficient and equitable financing sources and payment mechanisms"

Has the Federal Reserve been acting as if we have been in a perpetual National Security Emergency? Has the federal reserve been fine tuning the economy of the United States and advertising that it had the legal powers to do so when it really does not? Allen Greenspan, head of the Federal Reserve, Clinton’s Economic Advisor Laura Dandrea Tyson, Clinton’s International Security Advisor Lynn Etheridge Davis (who is also a Vice President of Chase Bank) and President Bill Clinton are all Council on Foreign Relations members.

Is the destiny of the American people being controlled by a group who have and hold the power to direct the credit policy of our nation. A group that has circumvented the check and balance safe-guards built into the system to prevent any one group from having this kind of power over the American citizen. A group whose self-proclaimed drive is for personal profit and who lack the honesty and integrity to make decisions based on public good.

  • Are Council on Foreign Relations members furthering a plan for a world order based on an economy of unrest?

  • Are Council on Foreign Relations members subtle fascists intently interested in private ownership of property, under their control?

  • Did the Council on Foreign Relations instigate and perpetuate the cold war?

  • Did they do this to accumulate and protect Council holdings?

  • Was this done by establishing and maintaining the most powerful U.S. military establishment in peacetime history?

  • Is the next stage in the plan to co-opt and divide eastern Europe and the rest of the world?

  • Is the next stage in the plan for powerful World-Wide military establishment of "volunteer" military forces under UN command in the role of Peacekeepers?

  • Was detonation of the first nuclear bomb, in Alamogordo New Mexico, on July 16, 1945, in a field test code-named Trinity, the Council’s subtle way of sounding the deathbell for Jefferson’s Trinity of inalienable rights of Life, Liberty and Pursuit of Happiness?

  • Was Nuclear Proliferation, and Mutually Assured Destruction (MAD) part of a Council on Foreign Relations psycho-political operation to keep the world in a state of controlled insanity?

  • Is the current threat of Nuclear terrorism by some rogue nation part of a Council on Foreign Relations psycho-political operation to rationalize keeping the United States in a perpetual state of National Security so the Federal Reserve can "legally" control the economy?

  • Are the Council on Foreign Relations controlled State Department, and CIA operatives working with the Britain’s Royal Institute of International Affairs controlled State Department and British Secret Service operatives to infiltrate, teach. and provide some small terrorist group with the necessary technology to make the threat of Nuclear terrorism a reality in some hapless city in the United States or other Western Nation?

The following book review, by Jane H. Ingraham, tells the story of the Founding of the Federal Reserve by the Round Table, and provides insight into how they really operate:


Book Review: The Creature From Jekyll Island - Killing the Banking Beast
Jane H. Ingraham
The New American
Vol 10, Number 18 September 5, 1994
The Creature From Jekyll Island, by G. Edward Griffin, Appleton, WI: American Opinion Publishing, Inc., 1994, 608 pages, paperback, $19.50. (For ordering information, see end of article.)

Has it ever occurred to you that the federal government has no need of taxes for revenue? Are you aware that banks prefer lending to governments because governments seldom repay loans? Do you realize that if all debts, both public and private, were paid, there would be no money at all in circulation?

These are only a few of the startling facts that fill the pages of this illuminating expose of the Insider scam called The Federal Reserve System (Fed). Although author G. Edward Griffin admits to having wondered if another book on the Federal Reserve is necessary (his six pages of bibliography suggest that the subject may have previously attracted attention), it is unlikely that any book has ranged across 2,000 years of money and banking from Diocletian to the Rothschilds to Alan Greenspan -- and tied it into the new world order -- as thoroughly as The Creature From Jekyll Island.

Griffin cuts through the obscurities about the Fed that are intentionally meant to mystify and disarm its victims (all of us). Convinced that the subject of money and banking is too arcane and complicated to understand, we victims are trapped in a world view that utterly fails to jibe with reality. The money manipulators, says Griffin, are exploiting our ignorance for the advancement of their own appalling plans; the urgency of awakening us to our danger has driven Griffin to write this extraordinary book.

Although Griffin has never held an academic position, he is a top-notch teacher. Making this little-understood subject simple by splendid organization, his account is divided into six sections with varying numbers of chapters; each section and chapter is introduced by a concise paragraph while each chapter is also summarized. Thus the reader is kept in touch with where he has been and where he is going, an ingenious and helpful device considering the enormous scope of Griffin’s narrative.

His explanations and definitions are meticulously worded; one can sense the care with which each word was chosen, leaving no room for confusion. Griffin continually draws documentation from primary sources, quoting letters, speeches, and published works that both enlighten and horrify. His own writing is difficult to quote; it is so trenchant that nearly every sentence entices. Yet at the same time Griffin has mastered the art of speaking personally to the reader, who never loses the feeling of being directly addressed. All this adds up to a superbly clear, engrossing book that, once started, is impossible to put down.

Setting the Stage
In order to help us fully understand our present predicament, Mr. Griffin ranges far a field in explaining the historical, economic, and political antecedents of today’s money system. We are given a crash course on the nature of money; the origin of banks and the concept of fractional reserves; how this led to the seductive idea of using the same money over and over; how this inevitably led to economic disaster wherever and whenever tried. We are instructed about the Rothschild formula, which perfected the art of making enormous profits from loans to governments, especially for wars; how this led to preventing any one nation from becoming strong enough to establish peace (the famous balance of power); how those who could instigate wars or revolutions were financed (including the Bolsheviks in 1917); how we Americans were sucked into World War I in order to save J.P. Morgan’s loans to England; how environmentalism is now the weapon of choice replacing war.

We are taken to the super-secret meeting of Insider financiers and Rothschild agent Paul Warburg on Jekyll Island in 1910 where the basic plan for what became the Federal Reserve Act was formulated; we learn that these plotters were already affiliated with the conspiratorial British one world
Round Table group which preceded the Council on Foreign Relations (our secret government); we are astounded by the brazen deception of Congress that pushed through this unconstitutional act creating the Insiders’ fundamental tool -- a central bank with the ability to inflate. We are told how this same tool has been expanded internationally through the International Monetary Fund (IMF) and World Bank in order to create worldwide inflation, pay enormous sums of perpetual interest on never paid-up loans to Insider banks, and socialize the Third World, all courtesy of us unsuspecting taxpayers. Lastly, Griffin foretells our dismaying fate if our course is not altered; then he lays out a step-by-step procedure of how to alter it, inviting us to join with him in doing so.

Griffin looks the Fed "creature" straight in the eye and tells us it is not federal, it has no reserves, and it is not a bank. It is, in fact, a pernicious cartel operating against the public interest. The widespread belief that the Federal Reserve exists to "stabilize the economy" is hogwash; the real reason for its existence is the making of money -- not out of "thin air" as is commonly supposed, but, more accurately, out of debt. Griffin explains that it is the act of borrowing by the federal government that causes money to spring into existence.

Griffin takes us through the Open Market steps by which Treasury IOUs (bonds) are converted by the Federal Reserve into money through the issuance of Federal Reserve checks with no money in existence to cover them; anyone else doing this would go to jail. Congress has made this legal for the Fed, however, because this hidden process allows our congressmen to enjoy unlimited revenue without having to visibly raise taxes. Without this service, says Griffin, the monetary/political partnership would dissolve, and Congress would abolish the Fed.

Money Multiplied
Griffin explains that these Federal Reserve checks are endorsed by the government, deposited in a Federal Reserve bank, and used to pay government expenses by checks which create the first wave of fiat (unbacked paper) money that floods into the economy. Recipients deposit these checks into commercial banks that are part of the Fed system. Here is where the real inflationary action is. (The Federal Reserve holds "only" seven percent of the national debt of almost $5 trillion. The 12 percent held by foreigners and the 56 percent held by Americans are not inflationary because the money used for purchase already existed.)

Commercial banks, like the Federal Reserve, also create money out of nothing -- and collect interest on it -- by multiplying every dollar deposited nine times. This amazing feat is accomplished through the device of fractional reserves, whereby the Fed allows 90 percent of deposits to be loaned out. As deposits become loans and loans become deposits, this process repeats with smaller numbers each time around. For instance, $1 million in government money (first wave) gives birth to $900,000 (second wave), which gives birth to $810,000 (third wave), etc., until the process plays itself out. Thus, the banking cartel creates an amount of money that is nine times the amount of the original government debt that made the process possible.

Griffin shows that when the original debt is added in, the Federal Reserve and the commercial banks together have created approximately ten times the amount of the underlying government debt. Since this newly created money causes the purchasing power of all money to decline, the resulting rise in prices is, in reality, a hidden tax. As Griffin puts it:

Without realizing it, Americans have paid over the years, in addition to their federal income taxes and excise taxes, a completely hidden tax equal to approximately ten times the national debt!

Griffin is astonished at the public’s indifference to this fleecing; he blames it on ignorance based on disinformation. Nothing could prove him more right than the current deception that inflation is higher prices caused by full employment and a strong economy; therefore, letting the "steam" out of the economy and slowing growth (and thereby employment) is "good." This talk is madness. Alan Greenspan, chairman of the Federal Reserve (who has the temerity to say he is "worried about inflation"), is repeating this claptrap as he pretends to control inflation by increasing interest rates that merely devastated the bond market, clobbered the stock market, and helped only the bankers. Thus the Insiders are perfectly protected and the scam rolls on.

There are many more threads to Griffin’s discourse on the operations of the banking cartel that should not be missed, such as:

  • How holders of Treasury bonds can be paid off only by the creation of an identical bond out of nothing.

  • Why the U.S. has to be, must be, in debt.

  • How the Discount Window (Fed loans to banks) creates more phony money.

  • How the federal government could operate without levying any taxes whatsoever.

  • How the Fed causes booms and busts.

  • How, since 1913, our money has depreciated by over 1,000 percent.

  • How a gold standard automatically stabilizes prices.

  • How the Fed can now monetize the debts of foreign governments!

Without the extensive knowledge offered by Griffin, no American can fully understand the financial reality of our time.

Understanding the Game
Also critical to our reality check is an understanding of how the Fed protects and enriches the banking brotherhood in the international arena. The game our Insiders are playing makes the Rothschilds look like novices. Here it is in a nutshell: The game starts with a mammoth loan (created out of nothing through the magic of fractional reserves) from one of our megabanks (Citicorp, Chase Manhattan, Bank of America, etc.) to a Third World country with scant means of servicing the debt much less ever repaying the principle. Are these top bankers stupid? Hardly; Griffin explains that this is the kind of loan these bankers love, since they make their money from interest on the loan, not on repayment of the loan. They prefer the loan never to be repaid. They know they can’t lose because the Federal Reserve guarantees that massive loans that go into default will not be allowed to seriously affect the issuing bank (too big to fail) because this would "disrupt the entire economy."

So, says Griffin,

"since the System makes it profitable for banks to make large, unsound loans, that is the kind of loans banks will make. Furthermore, it is predictable that most unsound loans will go into default."

Sure enough; pretty soon default threatens. The bank creates additional money out of nothing and lends that so its interest stream continues on both the original loan plus the new loan (the "roll-over" play). At the next crisis, the bank creates still more money out of nothing to cover the interest on both loans plus an additional amount for the borrower to spend freely (the "up-the-ante" play). Finally the bank agrees to a lower interest rate and a longer period for repayment (the " rescheduling" play). Eventually it is time for the "Final Maneuver." Congress agrees to guarantee future payments and the whole mess is shifted to the backs of U.S. taxpayers while the borrower is trapped into an IMF "austerity" program that makes an "end run" around his sovereignty.

Now money moves through various foreign aid channels to the deadbeat borrower, who continues to pay perpetual interest to the bank. Almost all of this money is generated by the Federal Reserve; as it moves out into the economy it dilutes the value of the money already there. The American people, says Griffin, have no idea they are footing the bill to enrich the Insider bankers.

Founder’ Fears Realized
Readers may be surprised to learn that the Federal Reserve is the fourth central bank the United States has had, the previous three having crashed in inevitable raging inflation and widespread economic disaster. So clearly did our Founders understand and fear worthless paper money forced on the public by legal tender laws (precisely what we now have) that they filled the proceedings of the Constitutional Convention with statements of their horror of it. We Americans today, deprived of hearing such truth, need to listen to their words:

  • George Mason of Virginia: "I have a mortal hatred of paper money."

  • John Langdon of New Hampshire: "I would rather reject the whole [Constitution] than grant the new government the right to issue fiat money."

  • George Reed of Delaware: "The right to issue fiat money would be as alarming as the mark of the beast in Revelation."

  • Thomas Paine: "The punishment of a member of Congress who should move for such a law ought to be death."

Griffin does not stop with presenting the known picture, but projects today’s reality into the future. His first projection is a doomsday scenario his second is a realistic plan for saving our country and ourselves. These chapters might, after all, be the most important ones in the book. Griffin sees doomsday as an engineered financial debacle the severity of which will cause panicked Americans to welcome a World Bank "rescue" with a world currency. The IMF/World Bank is already functioning - in conjunction with the Federal Reserve - as a world central bank. A world currency is already designed, awaiting a crisis to justify its introduction. From this point on, writes Griffin, there will be no escape from the new world order. At present the U.S. is being deliberately weakened by seemingly insane spending both at home and abroad: As just one more dismaying example, during President Clinton’s recent trip to Europe he blithely promised more billions of dollars to Poland, Ukraine, and the Baltic countries. The name of the game is to spend - on anything, anywhere. The object is to bring down the system.

Life in the New World Order
What will life be like in the Insidersnew world order?  Griffin spells it out from the words of the Insiders themselves. One source is the 1966 secret Hudson Institute study commissioned by Defense Secretary Robert McNamara, entitled Report From Iron Mountain. This study coldbloodedly discusses various means by which government might control the populace and perpetuate itself in power in the absence of war (UN peace).

Griffin’s review (with extensive quotes) of this truly diabolical Insider study is masterful; he takes it apart and shows us its consummate evil. The study’s premise is that historically the only means by which a government has ever been able to "secure the subordination of citizens to the state" is war. Only war has been able to provide the external threat without which no government can accumulate power. War is used to make the masses put up with all kinds of privation, taxation, and controls without complaint. No amount of sacrifice in the name of victory is rejected. Resistance is viewed as treason.

But, says Griffin, Report From Iron Mountain explains that the war system may have to be replaced because "it may now be possible to create a world government in which all nations will be disarmed and disciplined by a world army, a condition which we will call peace." In this case, what could be a substitute for war?

Here, explains Griffin, is the origin of the stratagem to promote ecological doom as the new enemy that threatens the entire world. The threat need not be real, provided the masses can be convinced it is real. Credibility is the key, not reality. Griffin writes that Report From Iron Mountain explains the avalanche of phony scientific claims that are uncritically publicized by the Insider-controlled media, as well as the funding of environmental "crazies" by corporations and businesses that would appear to have the most to lose. He sees the plan as being brilliantly successful.

The barrage of propaganda has had a phenomenal result. Politicians are now being elected on nothing but "concern for the environment and a promise to clamp down on nasty industries," with no one caring about the damage done to the economy or our freedoms. Just as no sacrifice is too great in time of war, what happens to the economy or our freedom is of no consequence "when the very planet on which we live is sick and dying."

Griffin introduces us to multi-millionaire Maurice Strong, the powerful UN environmental czar, who gives us the whole line: The U.S. is committing environmental aggression against the rest of the world. Current lifestyles of the affluent middle class -- high meat intake, frozen and convenience foods, electric household appliances, cars, air conditioning, suburban housing -- all this has to go. The world’s ecosystems can be preserved only by lowering our standard of living by rationing, taxation, and political domination by world government.

Reading this section will forever change the way in which you view government. Yet, says Griffin, this perverted, power-mad Insider fix need not prevail. None of these dreadful things needs to happen. He outlines a procedure by which the Federal Reserve can be abolished, the national debt paid, and the country returned to a sound monetary system based on silver and gold. All that is needed are the efforts of concerned and caring Americans. Griffin invites us to join him in freeing ourselves from the one-world conspirators. It can be done.

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[1] Quigley, Carroll, Tragedy and Hope, Macmillan, New York 1966, p. 939; The Anglo-American Establishment, Books In Focus, New York 1981 pg. 182-183, 232-233. "The Anglo-American Establishment" was written in 1949. It contains one brief reference to a "group of experts, " the INQUIRY"", present at the Paris Peace Conference on page 182. On page 233 Quigley warps history by disassociating the secret society from the authorship of Wilson’s 14 points. Quigley never refers to the INQUIRY in writing again, even in his later and more well known 1300 page tomb "Tragedy and Hope," published 1966.

[2] Lippmann, Walter PUBLIC OPINION, Harcourt, Brace and Co., NY, 1922 pgs 25-26

[3] Lippmann, Walter PUBLIC OPINION, Harcourt, Brace and Co., NY, 1922 pg 31-32

[4] Hadley Cantril, The Human Dimension: Experiences in Policy Research, Rutgers The State University, 1967 pg 22-25

[5] Dictionary of American Biography Supplement Eight 1966-1970, Garraty, John A., Carnes Mark C., Charles Scribner’s Sons, NY, Collier Macmillan Publishers London, 1936, pgs 679-680

[6] Langer, Walter C. The Mind of Adolf Hitler, The Secret Wartime Report, Basic Books Inc., New York, London (1972) Foward ( by William L. Langer) v-vi, 3-8

[7] Quigley, Carroll, The Anglo-American Establishment, Books in Focus, PO Box 3481, Grand Central Station, NY, NY 10163, 1981 pg ix [ Quigley died in 1977.

[8] AAA Publishing, Georgia - North Carolina - South Carolina TourBook, Heathrow, FL 32746-5063, pg 46

[9] Larry Abraham, Call it Conspiracy, Double A. Publications, Seattle Washington, 1985, 52-53; Cleon Skousen, The Naked Capitalist - A Review and Commentary on Dr. Carroll Quigley’s Book ’Tragedy and Hope - A History of the World In our Time’, published as a private edition by W. Cleon Skousen, 2197 Berkeley Street, Salt Lake City, Utah, 84109, 1971, 8th Printing, pgs 16-18

[10] Larry Abraham, Call it Conspiracy, Double A. Publications, Seattle Washington, 1985, 52-53; Cleon Skousen, The Naked Capitalist - A Review and Commentary on Dr. Carroll Quigley’s Book ’Tragedy and Hope - A History of the World In our Time’, published as a private edition by W. Cleon Skousen, 2197 Berkeley Street, Salt Lake City, Utah, 84109, 1971, 8th Printing, pgs 16-18

[11] Larry Abraham, Call it Conspiracy, Double A. Publications, Seattle Washington, 1985, 52-53; Cleon Skousen, The Naked Capitalist - A Review and Commentary on Dr. Carroll Quigley’s Book ’Tragedy and Hope - A History of the World In our Time’, published as a private edition by W. Cleon Skousen, 2197 Berkeley Street, Salt Lake City, Utah, 84109, 1971, 8th Printing, pgs 16-18

[12] Board of Governors of the Federal Reserve System, The Federal Reserve System - Purposes and Functions, 1913-1963, 50th Anniversary Edition, Washington, DC, 1963 Library of Congress Catalog Card Number 39-26719 pg. vii [First Edition 1939, Second Edition - 1947, Third Edition - 1954. Fourth Edition - 1961 ]

.[13] ibid pg 1-2

[14] Board of Governors of the Federal Reserve System, The Federal Reserve System - Purposes and Functions, 1913-1963, 50th Anniversary Edition, Washington, DC, 1963 Library of Congress Catalog Card Number 39-26719 pg. 166-169,270-273

[15]Board of Governors of the Federal Reserve System, The Federal Reserve System - Purposes and Functions, 1913-1963, 50th Anniversary Edition, Washington, DC, 1963 Library of Congress Catalog Card Number 39-26719 pg. 15-27, 215-266

[16] Quigley, Carroll, Tragedy and Hope, Macmillan, New York 1966, p. 325

[17] Quigley, Carroll, Tragedy and Hope, Macmillan, New York 1966, p. 324

[18] Quigley, Carroll, Tragedy and Hope, Macmillan, New York 1966, p. 326