The Federal Reserve: A century of tyranny

Wilson signing the Federal Reserve Act. (Painting by Wilbur G. Kurtz, Sr.)
Wilson signing the Federal Reserve Act.  (Painting by Wilbur G. Kurtz, Sr.)
Wilson signing the Federal Reserve Act. (Painting by Wilbur G. Kurtz, Sr.)

” It is no coincidence that the century of total war has coincided with the century of central banking.” — Congressman Ron Paul

Aside from the ignorance and apathy of American voters, the biggest enabler of the American police state is the central bank, which provides limitless cash supplies to the government.  December 23rd marks the 100th anniversary of this bank, called the Federal Reserve (or “the Fed”).  This historic anniversary is no reason to celebrate; rather it is time we reflect on the practically invisible, yet unimaginably devious system which has been robbing Americans for the last century.

The monetary system established under the Federal Reserve enables the government to spend vast amounts of money without directly and immediately imposing the costs on the American people.  Rather than being forced to raise taxes for wars, welfare, and other massive spending projects, the government simply directs its central bank to create any amount of new money necessary to sustain the government’s unprecedented levels of growth.  When the citizens are forced to pay exorbitant taxation to fund bureaucracies, wars, and forced charity, there would be a lot less tolerance for a government of such massive scope.

The implications of this are only limited by one’s imagination.  The U.S. government’s ability to militarize police departments across the country, bail out private corporations, create an unprecedented and ubiquitous spy grid, wage multi-decade intercontinental wars, launch bureaucracy after bureaucracy, and foster widespread citizen dependency is all directly tied to its ability to spend artificially-created money.  The police state could not nearly achieve its current size and scope if people were forced to directly and immediately pay for it.

The Federal Reserve traces its roots back to a well-connected U.S. Senator and a secretive meeting of government and banking elites.  Senator Nelson Aldrich (R-RI) was the head of the National Monetary Commission, a personal friend of banking titan J.P. Morgan, and was the father-in-law to John D. Rockefeller, Jr., heir to the Standard Oil empire.  After introducing a Senate Joint Resolution to establish a national income tax, Aldrich set forth on a quest to establish a central bank in the United States.  He spent copious amounts of tax money traveling Europe and conferring with Rothschild bankers and government ministers in developing his strategy, but the final revision of his plan required the expertise of America’s own banking elites.  In November 1910, Aldrich assembled a secret meeting with several of his powerful friends.  The meeting was disguised as a gentlemen’s duck hunting expedition, set on remote Jekyll Island, which is located off the coast of Georgia.

The Jekyll Island guests included Abram Piatt Andrew, assistant secretary of the U.S. Treasury; Henry P. Davison, a business partner of J.P. Morgan’s; Charles D. Norton, president of the First National Bank of New York; Benjamin Strong, another Morgan associate and the head of Bankers Trust; Frank A. Vanderlip, president of the National City Bank; and Paul M. Warburg, a partner in Kuhn, Loeb & Co.

The 1910 Jekyll Island conspirators.
The 1910 Jekyll Island conspirators.

The duck-hunt was, of course, a ruse. The group had no interest in hunting.  The island was chosen because it offered seclusion and privacy, free from the prying eyes of journalists.

To avoid identification by the servants, the attendees avoided using their full names and concealed their whereabouts throughout the course of the 9-day conference.  The secrecy was necessary to avoid giving the American people the impression that the plan was a concerted effort by special interests to control the monetary system through undemocratic means.  The secrecy seemed to matter less after the agenda was fulfilled, and later, some details began to leak.  Forbes magazine founder Bertie Charles Forbes described the meeting several years later, although his work was largely ignored or dismissed as preposterous.  He wrote:

Picture a party of the nation’s greatest bankers stealing out of New York on a private railroad car under cover of darkness, stealthily riding hundred of miles South, embarking on a mysterious launch, sneaking onto an island deserted by all but a few servants, living there a full week under such rigid secrecy that the names of not one of them was once mentioned, lest the servants learn the identity and disclose to the world this strangest, most secret expedition in the history of American finance. I am not romancing; I am giving to the world, for the first time, the real story of how the famous Aldrich currency report, the foundation of our new currency system, was written… The utmost secrecy was enjoined upon all. The public must not glean a hint of what was to be done. Senator Aldrich notified each one to go quietly into a private car of which the railroad had received orders to draw up on an unfrequented platform. Off the party set. New York’s ubiquitous reporters had been foiled… Nelson (Aldrich) had confided to Henry, Frank, Paul and Piatt that he was to keep them locked up at Jekyll Island, out of the rest of the world, until they had evolved and compiled a scientific currency system for the United States, the real birth of the present Federal Reserve System, the plan done on Jekyll Island in the conference with Paul, Frank and Henry… Warburg is the link that binds the Aldrich system and the present system together. He more than any one man has made the system possible as a working reality.

The meeting was further described to the best of historical knowledge by Ezra Pound to Eustace Mullins in his 1949 work Secrets of The Federal Reserve and later reported by G. Edward Griffin in his book The Creature from Jekyll Island.  Mullins provided the following insight in Chapter One of his book:

As the most technically proficient of those present, Paul Warburg was charged with doing most of the drafting of the plan. His work would then be discussed and gone over by the rest of the group. Senator Nelson Aldrich was there to see that the completed plan would come out in a form which he could get passed by Congress, and the other bankers were there to include whatever details would be needed to be certain that they got everything they wanted, in a finished draft composed during a onetime stay. After they returned to New York, there could be no second get together to rework their plan. They could not hope to obtain such secrecy for their work on a second journey.

FederalReserve_NewspaperThe meeting resulted in draft legislation for the creation of a U.S. central bank, known as the Aldrich Plan.  Despite faltering on its first attempt at passage, and despite Aldrich’s departure from office in 1911, most of the plan was incorporated into the 1913 Federal Reserve Act after some compromises were made.  On December 23, 1913, President Woodrow Wilson signed the act into law and gave birth to the Fed as we know it today.  And for the last century, the country has been held at the mercy of a cabal of international bankers, outside the knowledge of the majority of Americans.

Benjamin Strong, one of the Jekyll Island conspirators, became the first president of the New York Federal Reserve in 1914.

The Federal Reserve Act unconstitutionally relinquished Congress’s role in issuing money and regulating its value.  The Fed was granted the power to manipulate interest rates and expand or retract the amount of money in circulation, thereby possessing the ability to manipulate the worth of the U.S. Dollar — which henceforth became known as the Federal Reserve Note.

The Fed “succeeded” where previous attempts to create American central banks had failed.  Indeed, this had been a struggle that had been fought over since the country’s birth.  President Garfield once made the observation: “It must be realized that whoever controls the volume of money in any country is absolutely master of all industry (and) commerce.  And when you realize that the entire system is very easily controlled, one way or another, by a few powerful men at the top, you will not have to be told how periods of inflation and depression originate.”

Outspoken Federal Reserve opponent Congressman Charles A. Lindbergh said, “This [Federal Reserve Act] establishes the most gigantic trust on earth. When the President signs this bill, the invisible government of the monetary power will be legalized….the worst legislative crime of the ages is perpetrated by this banking and currency bill.”  After the signing, he noted, “From now on, depressions will be scientifically created.”

This was an important observation.  When elite bankers have the power to cause panics, they possess the ability to positively predict market behavior, thereby giving them an accurate forecast into the future.  This ability allows the elites to unfairly amass untold fortunes in the stock market while the rest of the country is being blindsided by an artificially caused market crash.  The Fed is the ultimate scheme to ensure that the insiders prosper while everyone else suffers perpetual inflation.

A 1912 depiction of the "Aldrich Plan" which was mostly implemented in the Federal Reserve Act.
A 1912 depiction of the “Aldrich Plan” which was mostly implemented in the Federal Reserve Act.

Lindburgh elaborated on this in his book, Real Needs: “[The Federal Reserve Board] can cause the pendulum of a rising and falling market to swing gently back and forth by slight changes in the discount rate, or cause violent fluctuations by a greater rate variation and in either case it will possess inside information as to financial conditions and advance knowledge of the coming change, either up or down. This is the strangest, most dangerous advantage ever placed in the hands of a special privilege class by any Government that ever existed. The system is private, conducted for the sole purpose of obtaining the greatest possible profits from the use of other people’s money. They know in advance when to create panics to their advantage, They also know when to stop panic. Inflation and deflation work equally well for them when they control finance.”

All these predictions came to pass, as the era of unfettered monetary manipulation began.  The U.S. Government could now spend money it didn’t have, and get away with it by inflating (devaluing) the currency of the American people.  When the United States entered World War I only a few years after the Federal Reserve was founded, the money-changers went to work, and “by 1920 a dollar would buy about half the goods it was capable of purchasing in 1914.” (John P. Koning)

In the early 1920s, “the international bankers were now ready to make a major killing,” stated Gary Allen in his work None Dare Call It Conspiracy.  “Between 1923 and 1929, the Federal Reserve expanded (inflated) the money supply by sixty-two percent. Much of this new money was used to bid the stock market up to dizzying heights.  At the same time that enormous amounts of credit money were being made available, the mass media began to ballyhoo tales of the instant riches to be made in the stock market…The House Hearings on Stabilization of the Purchasing Power of the Dollar disclosed evidence in 1928 that the Federal Reserve Board was working closely with the heads of European central banks. The Committee warned that a major crash had been planned in 1927. At a secret luncheon of the Federal Reserve Board and heads of the European central banks, the committee warned, the international bankers were tightening the noose” [i.e., were planning to raise interest rates].

William Bryan explained what happened next.  On October 24, 1929, “…when everything was ready, the New York financiers started calling 24 hour broker call loans. This meant that the stockbrokers and the customers had to dump their stock on the market in order to pay the loans. This naturally collapsed the stock market and brought a banking collapse all over the country because the banks not owned by the oligarchy were heavily involved in broker call claims at this time, and bank runs soon exhausted their coin and currency and they had to close. The Federal Reserve System would not come to their aid…”

Indeed, the scientifically-engineered crash of 1929 was not an accident.  Nobel Prize winning economist and Stanford University Professor Milton Friedman explained, “The Federal Reserve definitely caused the great depression by contracting the amount of currency in circulation by one third from 1929 to 1933.”

Over the course of the century, the Federal Reserve has reduced the purchasing power of the U.S. Dollar a breathtaking 98% from its original 1913 value.

I encourage you to read the books cited in this article to understand further the crimes of the Federal Reserve.  The Fed is truly one of the most devious plots ever created, and has been enabling theft, war, and big government for 100 years — a century of tyranny.

The decline of the value of U.S. Dollar after the Federal Reserve Act.
The decline of the value of U.S. Dollar after the Federal Reserve Act.


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