Part 3: All Wars are Bankers’ Wars — The Federal Reserve

The Federal Reserve — It is neither “Federal” nor does it have any actual “Reserves”

By Michael Rivero

Following the defeat of the Aldrich Plan, in 1913, the Private Central Bankers of Europe, in particular the Rothschilds of Great Britain and the Warburgs of Germany, met with their American financial collaborators once again on Jekyll Island, Georgia to form a new banking cartel with the express purpose of forcing the United States to accept a private central bank, with the aim of placing complete control of the United States money supply once again under the control of private bankers.

The Third Bank of the United States, aka The Federal Reserve

Owing to hostility over the previous banks, the name was changed from the Third Bank of the United States to “The Federal Reserve” system in order to grant the new bank a quasi-governmental image, but in fact it is a privately owned bank, no more “Federal” than Federal Express.

In the following video, former Chairman of the FED Allan Greenspan admits the Federal Reserve is a private bank and answers to no government authority.

The Federal Reserve is also exempt from all taxation, except property tax, and is neither “Federal” nor does it have any actual “Reserves”, creating as it does money out of thin air. In 2012, the Federal Reserve attempted to rebuff a Freedom of Information Lawsuit by Bloomberg News on the grounds that as a private banking corporation and not actually a part of the government, the Freedom of Information Act did not apply to the “trade secret” operations of the Federal Reserve.

“When you or I write a check, there must be sufficient funds in our account to cover the check; but when the Federal Reserve writes a check, there is no bank deposit on which that check is drawn. When the Federal Reserve writes a check, it is creating money.” — From the Boston Federal Reserve Bank pamphlet, “Putting it Simply.”

“Neither paper currency nor deposits have value as commodities. Intrinsically, a ‘dollar’ bill is just a piece of paper. Deposits are merely book entries.” — “Modern Money Mechanics Workbook” – Federal Reserve of Chicago, 1975

“I am afraid the ordinary citizen will not like to be told that the banks can and do create money. And they who control the credit of the nation direct the policy of Governments and hold in the hollow of their hand the destiny of the people.” — Reginald McKenna, as Chairman of the Midland Bank, addressing stockholders in 1924

“States, most especially the large hegemonic ones, such as the United States and Great Britain, are controlled by the international central banking system, working through secret agreements at the Bank for International Settlements (BIS), and operating through national central banks (such as the Bank of England and the Federal Reserve)… The same international banking cartel that controls the United States today previously controlled Great Britain and held it up as the international hegemon. When the British order faded, and was replaced by the United States, the US ran the global economy. However, the same interests are served. States will be used and discarded at will by the international banking cartel; they are simply tools.” — Andrew Gavin Marshall

The 16th Amendment and the Income Tax 1913 proved to be a transformative year for the nation’s economy, first with the passage of the 16th “income tax” Amendment and the false claim that it had been ratified.

“I think if you were to go back and and try to find and review the ratification of the 16th amendment, which was the internal revenue, the income tax, I think if you went back and examined that carefully, you would find that a sufficient number of states never ratified that amendment.” – U.S. District Court Judge James C. Fox, Sullivan Vs. United States, 2003.

Later that same year, and apparently unwilling to risk another questionable amendment, Congress passed the Federal Reserve Act over Christmas holiday 1913, while members of Congress opposed to the measure were at home.

This was a very underhanded deal, as the Constitution explicitly vests Congress with the authority to issue the public currency, does not authorize its delegation, and thus should have required a new Amendment to transfer that authority to a private bank. But pass it Congress did, and President Woodrow Wilson signed it as he promised the bankers he would in exchange for generous campaign contributions.

News report of Wilson’s signing the Federal Reserve Act

Under the Constitution, only a new Amendment could transfer the government’s authority to create the currency to a private party.

President Woodrow Wilson

President Woodrow Wilson 

Woodrow Wilson later regretted that decision.

“I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation is now controlled by its system of credit. We are no longer a government by free opinion, no longer a government by conviction and the vote of the majority, but a government by the opinion and duress of a small group of dominant men.” — Woodrow Wilson 1919

Thomas Edison

Thomas Edison, arguably the most brilliant man of the age, was also well aware of the fraud of private central banks.

Thomas Edison

“People who will not turn a shovel full of dirt on the project nor contribute a pound of material, will collect more money from the United States than will the People who supply all the material and do all the work. This is the terrible thing about interest …But here is the point: If the Nation can issue a dollar bond it can issue a dollar bill. The element that makes the bond good makes the bill good also.

The difference between the bond and the bill is that the bond lets the money broker collect twice the amount of the bond and an additional 20%. Whereas the currency, the honest sort provided by the Constitution pays nobody but those who contribute in some useful way. It is absurd to say our Country can issue bonds and cannot issue currency.

Both are promises to pay, but one fattens the usurer and the other helps the People. If the currency issued by the People were no good, then the bonds would be no good, either. It is a terrible situation when the Government, to insure the National Wealth, must go in debt and submit to ruinous interest charges at the hands of men who control the fictitious value of gold.”Look at it another way. If the Government issues bonds, the brokers will sell them.

The bonds will be negotiable; they will be considered as gilt edged paper. Why? Because the government is behind them, but who is behind the Government? The people. Therefore it is the people who constitute the basis of Government credit. Why then cannot the people have the benefit of their own gilt-edged credit by receiving non-interest bearing currency on Muscle Shoals, instead of the bankers receiving the benefit of the people’s credit in interest-bearing bonds?” — Thomas A. Edison, New York Times, December 4, 1921

The War to End All Wars – WW1

The next year, World War One started, and it is important to remember that prior to the creation of the Federal Reserve, there was no such thing as a world war.

World War One started between Austria-Hungary and Serbia with the assassination of Archduke Ferdinand.

Archduke Franz Ferdinand

Although the war started between Austria-Hungary and Serbia , it quickly shifted to focus on Germany, whose industrial capacity was seen as an economic threat to Great Britain, who saw the decline of the British Pound as a result of too much emphasis on financial activity to the neglect of agriculture, industrial development, and infrastructure (not unlike the present day United States).

Although pre-war Germany had a private central bank, it was heavily restricted and inflation kept to reasonable levels. Under government control, investment was guaranteed to internal economic development, and Germany was seen as a major power.

So, in the media of the day, Germany was portrayed as the prime opponent of World War One, and not just defeated, but its industrial base flattened. Following the Treaty of Versailles, Germany was ordered to pay the war costs of all the participating nations, even though Germany had not actually started the war.

This amounted to three times the value of all of Germany itself. Germany’s private central bank, to whom Germany had gone deeply into debt to pay the costs of the war, broke free of government control, and massive inflation followed (mostly triggered by currency speculators), permanently trapping the German people in endless debt.

WW2

When the Weimar Republic collapsed economically, it opened the door for the National Socialists to take power. Their first financial move was to issue their own state currency which was not borrowed from private central bankers. Freed from having to pay interest on the money in circulation, Germany blossomed and quickly began to rebuild its industry. The media called it “The German Miracle”. TIME magazine lionized Hitler for the amazing improvement in life for the German people and the explosion of German industry, and even named him TIME Magazine’s Man Of The Year in 1938.

Hitler as TIME’s Man Of The Year

Once again, Germany’s industrial output became a threat to Great Britain.

“Should Germany merchandise (do business) again in the next 50 years we have led this war (WW1) in vain.” – Winston Churchill in The Times (1919)

“We will force this war upon Hitler, if he wants it or not.” – Winston Churchill (1936 broadcast)

“Germany becomes too powerful. We have to crush it.” – Winston Churchill (November 1936 speaking to US – General Robert E. Wood)

“This war is an English war and its goal is the destruction of Germany.” – Winston Churchill (- Autumn 1939 broadcast)
“Not the political doctrine of Hitler has hurled us into this war. The reason was the success of his increase in building a new economy. The roots of war were envy, greed and fear.” — Major General J.F.C. Fuller, historian, England

Germany’s state-issued value based currency was also a direct threat to the wealth and power of the private central banks, and as early as 1933 they started to organize a global boycott against Germany to strangle this upstart ruler who thought he could break free of private central bankers!

As had been the case in World War One, Great Britain and other nations threatened by Germany’s economic power looked for an excuse to go to war, and as public anger in Germany grew over the boycott, Hitler foolishly gave them that excuse. Years later, in a spirit of candor, the real reasons for that war were made clear.

“The war wasn’t only about abolishing fascism, but to conquer sales markets. We could have, if we had intended so, prevented this war from breaking out without doing one shot, but we didn’t want to.”– Winston Churchill to Truman (Fultun, USA March 1946)

“Germany’s unforgivable crime before WW2 was its attempt to loosen its economy out of the world trade system and to build up an independent exchange system from which the world-finance couldn’t profit anymore. …We butchered the wrong pig.” -Winston Churchill (The Second World War – Bern, 1960)

Smedley Butler

Marine Corps Major General Smedly Butler

As a side note, we need to step back before WW2 and recall Marine Major General Smedley Butler. In 1933, Wall Street bankers and financiers had bankrolled the successful coups by both Hitler and Mussolini. Brown Brothers Harriman in New York was financing Hitler right up to the day war was declared with Germany.

Albert Einstein was of the opinion that the late entry of the US into the war against Germany was because the US was controlled by bankers who were making money off of Hitler.

The Wall Street bankers decided that a fascist dictatorship in the United States based on the one on Italy would be far better for their business interests than Roosevelt’s “New Deal” which threatened massive wealth re-distribution to recapitalize the working and middle class of America.

So the Wall Street tycoons recruited General Butler to lead the overthrow of the US Government and install a “Secretary of General Affairs” who would be answerable to Wall Street and not the people, would crush social unrest and shut down all labor unions.

General Butler pretended to go along with the scheme but then exposed the plot to Congress. Congress, then as now in the pocket of the Wall Street bankers, refused to act. When Roosevelt learned of the planned coup he demanded the arrest of the plotters, but the plotters simply reminded Roosevelt that if any one of them were sent to prison, their friends on Wall Street would deliberately collapse the still-fragile economy and blame Roosevelt for it.

Roosevelt was thus unable to act until the start of WW2, at which time he prosecuted many of the plotters under the Trading With The Enemy act.

The Congressional minutes into the coup were finally declassified in 1967, but rumors of the attempted coup became the inspiration for the movie, “Seven Days in May” but with the true financial villains erased from the script.

“I spent 33 years and four months in active military service as a member of our country’s most agile military force — the Marine Corps. I served in all commissioned ranks from second lieutenant to Major General. And during that period I spent more of my time being a high–class muscle man for Big Business, for Wall Street and for the bankers. In short, I was a racketeer, a gangster for capitalism.

“I suspected I was just a part of a racket at the time. Now I am sure of it. Like all members of the military profession I never had an original thought until I left the service. My mental faculties remained in suspended animation while I obeyed the orders of the higher-ups. This is typical with everyone in the military service. Thus I helped make Mexico and especially Tampico safe for American oil interests in 1914. I helped make Haiti and Cuba a decent place for the National City Bank boys to collect revenues in. I helped in the raping of half a dozen Central American republics for the benefit of Wall Street.

The record of racketeering is long. I helped purify Nicaragua for the international banking house of Brown Brothers in 1909-12. I brought light to the Dominican Republic for American sugar interests in 1916. In China in 1927 I helped see to it that the Standard Oil went its way unmolested. During those years, I had, as the boys in the back room would say, a swell racket. I was rewarded with honors, medals and promotion. Looking back on it, I feel I might have given Al Capone a few hints.

The best he could do was to operate his racket in three city districts. I operated on three continents.” — General Smedley Butler, former US Marine Corps Commandant,1935

Louis T. McFadden 

Louis T. McFadden

Louis T. McFadden was a member of the House of Representatives in the twenties and thirties. He was the chair of the House Banking and Currency Committee during the twenties. He used his position in Congress occasionally to crusade against the Federal Reserve.

Louis T. McFadden was a member of the House of Representatives in the twenties and thirties. He was the chair of the House Banking and Currency Committee during the twenties. He used his position in Congress occasionally to crusade against the Federal Reserve.

“Mr. Chairman, we have in this country one of the most corrupt institutions the world has ever known. I refer to the Federal Reserve Board and the Federal reserve banks. The Federal Reserve Board, a Government board, has cheated the Government of the United States out of enough money to pay the national debt.

The depredations and the iniquities of the Federal Reserve Board and the Federal reserve banks acting together have cost this country enough money to pay the national debt several times over. This evil institution has impoverished and ruined the people of the United States; has bankrupted itself, and has practically bankrupted our Government. It has done this through defects of the law under which it operates, through the maladministration of that law by the Federal Reserve Board and through the corrupt practices of the moneyed vultures who control it.” — Louis T. McFadden, June 10, 1932

At one point McFadden started impeachment proceedings against the entire board of the federal reserve. Not too surprisingly, there were three attempts on McFadden’s life, one shooting and two poisonings, the second of which was successful.

Another Assassination?

Although still officially declared as heart failure, newspapers of the time reported …

“Now that this sterling American patriot has made the Passing, it can be revealed that not long after his public utterance against the encroaching powers of Judah, it became known among his intimates that he had suffered two attacks against his life.

“The first attack came in the form of two revolver shots fired at him from ambush as he was alighting from a cab in front of one of the Capital hotels. Fortunately both shots missed him, the bullets burying themselves in the structure of the cab.

“He became violently ill after partaking of food at a political banquet at Washington. His life was only saved from what was subsequently announced as a poisoning by the presence of a physician friend at the banquet, who at once procured a stomach pump and subjected the Congressman to emergency treatment.”