What is the Federal Reserve system? How did it come into existence? Is it part of the federal government? How does it create money? Why is the public kept in the dark about these important matters? In this feature-length documentary film, The Corbett Report explores these important question and pulls back the curtain on America's central bank.
TRANSCRIPT AND RESOURCES: http://www.corbettreport.com/federalreserve/
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Part One: The Origins of the Fed
“The real truth of the matter is, as you and I know, that a financial element in the larger centers has owned the Government ever since the days of Andrew Jackson.” — FDR letter to Colonel Edward House, Nov. 21, 1933
All our lives we’ve been told that economics is boring. It’s dull. It’s not worth the time it takes to understand it. And all our lives, we’ve been lied to.
War. Poverty. Revolution. They all hinge on economics. And economics all rests on one key concept: money.
Money. It is the economic water in which we live our lives. We even call it “currency”; it flows around us, carries us in its wake. Drowns those who are not careful.
We use it every day in nearly every transaction we conduct. We spend our lives working for it, worrying about it, saving it, spending it, pinching it. It defines our social status. It compromises our morals. People are willing to fight, die, and kill for it.
But what is it? Where does it come from? How is it created? Who controls it? It is a remarkable fact that, given its central importance in our lives, not one person in a hundred could answer such basic questions about money as these.
Interviewer: So if you were planning a family, you’d want to know where babies come from. And this is a lot about banking. So let me ask you: Where does money come from?
Interviewee 1: Where does the money come from? The government prints it. It’s printed off.
Interviewer: How is new money created?
Interviewee 2: By labor. People work and produce wealth, and the money is supposed to match that wealth.
Interviewee: Where does money come from?
Interviewee 3: Well, I have a pretty different outlook on money. It actually comes from, like, trees, right?
SOURCE: Occupy Vancouver answers “Where does money come from?”
But why is this? How could we be so ignorant about a topic of such importance? “Where does money come from?” is a basic, childlike question. So why is our only response the childlike answer, meant as a joke: “It grows on trees”?
Such a profound state of ignorance could not come about naturally. From the time we are children, we are curious about the world and eager to learn about the way it works. And what could lead to a better understanding of the way the world works than a knowledge of money, its creation and destruction? Yet discussion of this topic is fastidiously avoided in our school years and ignored in our daily life. Our monetary ignorance is artificial, a smokescreen that has been erected on purpose and perpetrated with the help of complicated systems and insufferable economic jargon.
But it doesn’t take an economist to understand the importance of money. Deep down we all know that the wars, the poverty, the violence we see around us hinges on this question of money. It seems like a thousand-piece jigsaw puzzle just waiting to be solved. And it is.
The puzzle pieces, taken together, create an image of the Federal Reserve, America’s central bank and the heart of the country’s banking system. Despite its central importance to the economy, relatively few have heard of it, and fewer still know what it is, despite the bank’s attempts at self-description:
Our economy runs on a complex system of exchange of goods and services in which money plays a key part. Coin, currency, savings, and checking accounts; the overall supply of money is managed by the Federal Reserve. Money is the medium through which economic exchanges take place, and money as a standard of value helps us to set prices for goods and services. The job of managing money—monetary policy—is to preserve the purchasing power of the dollar while ensuring that a sufficient amount of money is available to promote economic growth.
The Federal Reserve also promotes the safety and soundness of the institutions where we do our banking. It ensures that the mechanisms by which we make payments, whether by cash, cheque, or electronic means, operate smoothly and efficiently.
And in its fiscal role acts as the banker for the United States government.
Now these duties comprise the major responsibilities of our central bank.
SOURCE: The Fed: Our Nation’s Central Bank
But in order to understand the Federal Reserve, we must first understand its origins and context. We must deconstruct the puzzle.
The first piece of that puzzle lies here, in the White House. This is where the Federal Reserve Act, then known as the Currency Bill, was signed into law after passing the House and Senate in late December 1913.
The New York Times of Christmas Eve 1913, described the festive scene:
“The Christmas spirit pervaded the gathering. While the ceremony was a little less impressive than that of the signing of the Tarriff act on Oct. 3 last in the same room, the spectators were much more enthusiastic and seized every occasion to applaud.”
There in the White House that fateful December evening, President Wilson signed away the last veneer of control over the American money supply to a cartel—a well-organized gang of crooks so successful, so cunning, so well-hidden that even now, a century later, few know of its existence, let alone the details of its operations. But those details have been openly admitted for decades.
Of course, just as we have been taught to find economics boring, we have been taught that this story is boring. This is the way the Federal Reserve itself tells it:
The United States was facing severe financial problems. At the turn of the century, most banks were issuing their own currency, called “bank notes.” The trouble was, currency that was good in one state was sometimes worthless in another. People began to lose confidence in their money, since it was only as sound as the bank that issued it. Fearful that their bank might go out of business, they rushed to exchange their bank notes for gold or silver. By attempting to do so, they created the Panic of 1907.
SOURCE: Where The Bankers Bank
During the panic, people streamed to the banks and demanded their deposits. The banks could not meet the demand; they simply did not have enough gold and silver coin available. Many banks went under. People lost millions of dollars, businesses suffered, unemployment rose, and the stability of our economic system was again threatened.
Well, this couldn’t go on. If the country was going to grow and prosper, some means would have to be found to achieve financial and economic stability.
To prevent financial panics like the one in 1907, President Woodrow Wilson signed The Federal Reserve Act into law in 1913.
SOURCE: Too Much, Too Little
But this is history as told by the victors: a revisionist vision in which the creation of a central bank to control the nation’s money supply is merely a boring historical footnote, about as important as the invention of the zipper or an early 20th century hula-hoop craze. The truth is that the story of the secret banking conclave that gave birth to that Federal Reserve Act is as exciting and dramatic as any Hollywood screenplay or detective novel yarn, and all the more remarkable for the fact that it is all true.
We pick up the story, appropriately enough, under cover of darkness. It was the night of November 22, 1910, and a group of the richest and most powerful men in America were boarding a private rail car at an unassuming railroad station in Hoboken, New Jersey. The car, waiting with shades drawn to keep onlookers from seeing inside, belonged to Senator Nelson Aldrich, the father-in-law of billionaire heir to the Rockefeller dynasty, John D. Rockefeller, Jr. A central figure on the influential Senate Finance Committee, where he oversaw the nation’s monetary policy, Aldrich was referred to in the press as the “General Manager of the Nation.” Joining him that evening was his private secretary, Shelton, and a who’s who of the nation’s banking and financial elite: A. Piatt Andrew, the Assistant Treasury Secretary; Frank Vanderlip, President of the National City Bank of New York; Henry P. Davison, a senior partner of J.P. Morgan Company; Benjamin Strong, Jr., an associate of J.P. Morgan and President of Bankers Trust Co., and Paul Warburg, heir of the Warburg banking family and son-in-law of Solomon Loeb of the famed New York investment firm, Kuhn, Loeb & Company.
The men had been told to arrive one by one after sunset to attract as little attention as possible. Indeed, secrecy was so important to their mission that the group did not use anything but their first names throughout the journey so as to keep their true identities secret even from their own servants and wait staff. The movements of any one of them would have been reason enough to attract the attention of New York’s voracious press, especially in an era where banking and monetary reform was seen as a key issue for the future of the nation; a meeting of all of them, now that would surely have been the story of the century. And it was.
Their destination? The secluded Jekyll Island off the coast of Georgia, home to the prestigious Jekyll Island Club, whose members included the Morgans, Rockefellers, Warburgs, and Rothschilds. Their purpose? Davison told intrepid local newspaper reporters who had caught wind of the meeting that they were going duck hunting. But in reality, they were going to draft a reform of the nation’s banking industry in complete secrecy.
G. Edward Griffin, the author of the best-selling The Creature from Jekyll Island and a long-time Federal Reserve researcher, explains:
G. Edward Griffin: What happened is the banks decided that since there was going to be legislation anyway to control their industry, that they wouldn’t just sit back and wait and see what happened and cross their fingers that it would be OK. They decided to do what so many cartels do today: they decided to take the lead. And they would be the ones calling for regulations and reform.
They like the word “reform.” The American people are suckers for the word “reform.” You just put that into any corrupt piece of legislation, call it “reform” and people say “Oh, I’m all for ‘reform,'” and so they vote for it or accept it.
So that’s what they were doing. They decided, “We will ‘reform’ our own industry.” In other words, “We will create a cartel and we will give the cartel the power of government. We’ll take our cartel agreement so we can self-regulate to our advantage and we’ll call it ‘The Federal Reserve Act.’ And then we’ll take this cartel agreement to Washington and convince those idiots there to pass it into law.”
And that basically was the strategy. It was a brilliant strategy. Of course we see it happening all the time, certainly in our own day today we see the same thing happened in other cartelized industries. Right now we’re watching it unfold in the field of healthcare, but at that time it was banking, alright?
And so the banking cartel wrote their own rules and regulations, called it “The Federal Reserve Act,” got it passed into law, and it was very much to their liking because they wrote it. And in essence what they had created was a set of rules that made it possible for themselves to regulate their industry, but they went even beyond that. In fact, it’s clear to me when I was reading their letters and their conversation at the time, and the debates, that they never dreamed that Congress would go along and also give them the right to issue the nation’s money supply. Not only were they now going to regulate their own industry, which is what they started out as wanting to do, but they got this incredible gift that they didn’t dream would be given to them (although they were negotiating for it), and that was that Congress gave them the authority to issue the nation’s money. Congress gave away the sovereign right to issue the nation’s money to the private banks.
And so all of this was in The Federal Reserve Act, and the American people were joyous because they were told, and they were convinced, that this was finally a means of controlling this big creature from Jekyll Island.
SOURCE: Interview with G. Edward Griffin
Amazingly enough, they were successful, not just in conspiring to write the legislation that would eventually become the Federal Reserve Act, but in keeping that conspiracy a secret from the public for decades. It was first reported on in 1916 by Bertie Charles Forbes, the financial writer who would later go on to found Forbes magazine, but it was never fully admitted until a full quarter-century later, when Frank Vanderlip wrote a casual admission of the meeting in the February 9, 1935, edition of The Saturday Evening Post:
“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.”
Over the course of their nine days of deliberation at the Jekyll Island Club, they devised a plan so overarching, so ambitious, that even they could scarcely imagine that it would ever be passed by Congress. As Vanderlip put it, “Discovery [of our plan], we knew, simply must not happen, or else all our time and effort would be wasted. If it were to be exposed publicly that our particular group had got together and written a banking bill, that bill would have no chance whatever of passage by Congress.”
So what, precisely, did this conclave of conspirators devise at their Jekyll Island meeting? A plan for a central banking system to be owned by the banks themselves, a system which would organize the nation’s banks into a private cartel that would have sole control over the money supply itself. At the end of their nine-day meeting, the bankers and financiers went back to their respective offices content in what they had accomplished. The details of the plan changed between its 1910 drafting and the eventual passage of the Federal Reserve Act, but the essential ideas were there.
But ultimately, this scene on Jekyll Island, too, is just one piece of a larger puzzle. And like any other puzzle piece, it has to be seen in its wider context for the bigger picture to become visible. To understand the other pieces of the puzzle and their importance in the creation of the Federal Reserve, we have to travel backward in time.
The story begins in late 17th century Europe. The Nine Years’ War is raging across the continent as Louis XIV of France finds himself pitted against much of the rest of the continent over his territorial and dynastic claims. King William III of England, devastated by a stunning naval defeat, commits his court to rebuilding the English navy. There’s only one problem: money. The government’s coffers have been exhausted by the waging of the war and William’s credit is drying up.
A Scottish banker, William Paterson, has a banker’s solution: a proposal “to form a company to lend a million pounds to the Government at six percent (plus 5,000 ‘management fee’) with the right of note issue.” By 1694, the idea has been slightly revised (a 1.2 million pound loan at 8 percent plus 4,000 for management expenses), but it goes ahead: The magnanimously titled Bank of England is created.
The name is a carefully constructed lie, designed to make the bank appear to be a government entity. But it is not. It is a private bank owned by private shareholders for their private profit with a charter from the king that allows them to print the public’s money out of thin air and lend it to the crown. What happens here at the birth of the Bank of England in 1694 is the creation of a template that will be repeated in country after country around the world: a privately controlled central bank lending money to the government at interest, money that it prints out of nothing. And the jewel in the crown for the international bankers that creates this system is the future economic powerhouse of the world, the United States.
In many important respects, the history of the United States is the history of the struggle of the American people against the bankers that wish to control their money. By the 1780s, with colonies still fighting for independence from the crown, the bankers will get their wish.
In 1781 the United States is in financial turmoil. The Continental, the paper currency issued by the Continental Congress to pay for the war, has collapsed from overissue and British counterfeiting. Desperate to find a way to finance the end stages of the war, Congress turns to Robert Morris, a wealthy shipping merchant who was investigated for war profiteering just two years earlier. Now, as “Superintendent of Finance” of the United States from 1781 to 1784, he is regarded as the most powerful man in America next to General Washington.
In his capacity as Superintendent of Finance, Morris argues for the creation of a privately-owned central bank deliberately modeled on the Bank of England that the colonies were supposedly fighting against. Congress, backed into a corner by war obligations and forced to do business with the bankers just like King William in the 1690s, acquiesces and charters the Bank of North America as the nation’s first central bank. And exactly as the Bank of England came into existence loaning the British crown 1.2 million pounds, the B.N.A. started business by loaning 1.2 million dollars to Congress.
By the end of the war, Morris has fallen out of political favor and the Bank of North America’s currency has failed to win over a skeptical public. The B.N.A. is downgraded from a national central bank to a private commercial bank chartered by the State of Pennsylvania.
But the bankers have not given up yet. Before the ink is even dry on the Constitution, a group led by Alexander Hamilton is already working on the next privately-owned central bank for the newly formed United States of America.
So brazen is Hamilton in the forwarding of this agenda that he makes no attempt to hide his aims or those of the banking interests he serves:
“A national debt, if it is not excessive, will be to us a national blessing,” he wrote in a letter to James Duane in 1781. “It will be a powerful cement of our Union. It will also create a necessity for keeping up taxation to a degree which, without being oppressive, will be a spur to industry.”
Opposition to Hamilton and his debt-based system for establishing the finances of the US is fierce. Led by Jefferson and Madison, the bankers and their system of debt-enslavement is called out for the force of destruction that it is. As Thomas Jefferson wrote:
“[T]he spirit of war and indictment, […] since the modern theory of the perpetuation of debt, has drenched the earth with blood, and crushed its inhabitants under burdens ever accumulating.”
Still, Hamilton proves victorious. The First Bank of the United States is chartered in 1791 and follows the pattern of the Bank of England and the Bank of North America almost exactly; a privately-owned central bank with the authority to loan money that it creates out of nothing to the government. In fact, it is the very same people behind the new bank as were behind the old Bank of North America. It was Alexander Hamilton, Robert Morris’ former aide, who first proposed Morris for the position of Financial Superintendent, and the director of the old Bank of North America, Thomas Willing, is brought in to serve as the first director of the First Bank of the United States. Meet the new banking bosses, same as the old banking bosses.
In the first five years of the bank’s existence, the US government borrows 8.2 million dollars from the bank and prices rise 72%. By 1795, when Hamilton leaves office, the incoming Treasury Secretary announces that the government needs even more money and sells off the government’s meager 20% share in the bank, making it a fully private corporation. Once again, the US economy is plundered while the private banking cartel laughs all the way to the bank that they created.
By the time the bank’s charter comes due for renewal in 1811, the tide has changed for the money interests behind the bank. Hamilton is dead, shot to death in a duel with Aaron Burr. The bank-supporting Federalist Party is out of power. The public are wary of foreign ownership of the central bank, and what’s more don’t see the point of a central bank in time of peace. Accordingly, the charter renewal is voted down in the Senate and the bank is closed in 1811.
Less than a year later, the US is once again at war with England. After two years of bitter struggle, the public debt of the US has nearly tripled, from $45.2 million to $119.2 million. With trade at a standstill, prices soaring, inflation rising and debt mounting, President Madison signs the charter for the creation of another central bank, the Second Bank of the United States, in 1816. Just like the two central banks before it, it is majority privately-owned and is granted the power to loan money that it creates out of thin air to the government.
The 20-year bank charter is due to expire in 1836, but President Jackson has already vowed to let it die prior to renewal. Believing that Jackson won’t risk his chance for reelection in 1832 on the issue, the bankers forward a bill to renew the bank’s charter in July of that year, four years ahead of schedule. Remarkably, Jackson vetoes the renewal charter and stakes his reelection on the people’s support of his move. In his veto message, Jackson writes in no uncertain terms about his opposition to the bank:
“Whatever interest or influence, whether public or private, has given birth to this act, it can not be found either in the wishes or necessities of the executive department, by which present action is deemed premature, and the powers conferred upon its agent not only unnecessary, but dangerous to the Government and country. It is to be regretted that the rich and powerful too often bend the acts of government to their selfish purposes.[…]If we can not at once, in justice to interests vested under improvident legislation, make our Government what it ought to be, we can at least take a stand against all new grants of monopolies and exclusive privileges, against any prostitution of our Government to the advancement of the few at the expense of the many, and in favor of compromise and gradual reform in our code of laws and system of political economy.”
The people side with Jackson and he’s reelected on the back of his slogan, “Jackson and No Bank!” The President makes good on his pledge. In 1833 he announces that the government will stop using the bank and will pay off its debt. The bankers retaliate in 1834 by staging a financial crisis and attempting to pin the blame on Jackson, but it’s no use. On January 8, 1835, President Jackson succeeds in paying off the debt, and for the first and only time in its history the United States is free from the debt chain of the bankers. In 1836 the Second Bank of the United States’ charter expires and the bank loses its status as America’s central bank.
It is 77 years before the bankers can regain the jewel in their crown. But it is not for lack of trying. Immediately upon the death of the bank, the banking oligarchs in England react by contracting trade, removing capital from the US, demanding payment in hard currency for all exports, and tightening credit. This results in a financial crisis known as the Panic of 1837, and once again Jackson’s campaign to kill the bank is blamed for the crisis.
Throughout the late 19th century the United States is rocked by banking panics brought about by wild banking speculation and sharp contractions in credit. By the dawn of the 20th century, the bulk of the money in the American economy has been centralized in the hands of a small clique of industrial magnates, each with a near-monopoly on a sector of the economy. There are the Astors in real estate; the Carnegies and the Schwabs in steel; the Harrimans, Stanfords and Vanderbilts in railroads; the Mellons and the Rockefellers in oil. As all of these families start to consolidate their fortunes, they gravitate naturally to the banking sector. And in this capacity, they form a network of financial interests and institutions that centered largely around one man, banking scion and increasingly America’s informal central banker in the absence of a central bank, John Pierpont Morgan.
John Pierpont Morgan, or “Pierpont,” as he prefers to be called, is born in Hartford, Connecticut, in 1837 to Junius Spencer Morgan, a successful banker and financier. Morgan rides his father’s coattails into the banking business and by 1871 is partnered in his own firm, the firm that was eventually to become J.P. Morgan and Company.
It is Morgan who finances Cornelius Vanderbilt’s New York Central Railroad. It is Morgan who finances the launch of nearly every major corporation of the period, from AT&T to General Electric to General Motors to DuPont. It is Morgan who buys out Carnegie and creates the United States Steel Corporation, America’s first billion-dollar company. It is Morgan who brokers a deal with President Grover Cleveland to “save” the nation’s gold reserves by selling 62 million dollars worth of gold to the Treasury in return for government bonds. And it is Morgan who, in 1907, sets in motion the crisis that leads to the creation of the Federal Reserve.
That year, Morgan begins spreading rumors about the precarious finances of the Knickerbocker Trust Company, a Morgan competitor and one of the largest financial institutions in the United States at the time. The resulting crisis, dubbed the Panic of 1907, shakes the US financial system to its core. Morgan puts himself forward as a hero, boldly offering to help underwrite some of the faltering banks and brokerage houses to keep them from going under. After a bout of hand-wringing over the nation’s finances, a Congressional Committee is assembled to investigate the “money trust,” the bankers and financiers who brought the nation so close to financial ruin and who wield such power over the nation’s finances. The public follows the issue closely, and in the end a handful of bankers are identified as key players in the money trust’s operations, including Paul Warburg, Benjamin Strong, Jr., and J.P. Morgan.
Andrew Gavin Marshall, editor of The People’s Book Project, explains:
Andrew Gavin Marshall: At the beginning of the 20th century there was an investigation following the greatest of these financial panics, which was in 1907, and this investigation was on “the money trust.” It found that three banking interests–J.P. Morgan, National City Bank, and the City Bank of New York–basically controlled the entire financial system. Three banks. The public hatred toward these institutions was unprecedented. There was an overwhelming consensus in the country for establishing a central bank, but there were many different interests in pushing this and everyone had their own purpose behind advocating for a central bank.
So to represent most people, you had farmer interests, populists, progressives, who were advocating a central bank because they couldn’t take the recurring panics, but they wanted government control of the central bank. They wanted it to be exclusively under the public control because they despised and feared the New York banks as wielding too much influence, so for them a central bank would be a way to curb the power of these private financial interests.
On the other hand, those same financial interests were advocating for a central bank to serve as a source of stability for their control of the system, and also to act as a lender of last resort to them so they would never have to face collapse. But also, in order to exert more control through a central bank, the private New York banking community wanted a central bank under the exclusive control of them. There’s a shocker.
So you had all these various interests which converged. Of course, the most influential happened to be the New York financial houses which were more aligned with the European financial houses than they were with any other element in American society. The main individual behind the founding of the Federal Reserve was Paul Warburg, who was a partner with Kuhn, Loeb and Company, a European banking house. His brothers were prominent bankers in Germany at that time, and he had of course close connections with every major financial and industrial firm in the United States and most of those existing in Europe. And he was discussing all of these ideas with his fellow compatriots in advocating for a central bank. In 1910, Warburg got the support of a Senator named Nelson Aldrich, whose family later married into the Rockefeller family (again, I’m sure just a coincidence). Aldrich invited Warburg and a number of other bankers to a private, secret meeting on Jekyll Island just off the coast of Georgia where they met in 1910 to discuss the construction of a central bank in the United States, but one which would of course be owned by and serve the interests of the private bank. Aldrich then presented this in 1911 as the “Aldrich Plan” in the U.S. Congress, but it was actually voted out.
The public, suspicious of Senator Aldrich’s banking connections, ultimately reject the Jekyll Island cabal’s “Aldrich Plan.” The cabal does not give up, however. They simply revise and rename their plan, giving it a new public face, that of Representative Carter Glass and Senator Robert Owen.
In the end, the money trust that was behind the Panic of 1907 uses the public’s own outrage against them to complete their consolidation of control over the banking system. The newly retitled Federal Reserve Act is signed into law on December 23, 1913, and the Fed begins operations the next year.
Part Two: How the Scam Works
“The study of money, above all other fields in economics, is one in which complexity is used to disguise truth or to evade truth, not to reveal it.” — John Kenneth Galbraith
So how does the Federal Reserve system work? What does it do? Who owns and controls it? These are the basic questions that would get to the heart of the fundamental question: “What is money?” And that is why the answers to these questions have been shrouded in impenetrable economic jargon.
Even the Federal Reserve’s own educational propaganda, which has an unusual tendency toward cutesy animation and talking down to its audience, has a difficult time summarizing the Fed’s mission and responsibilities. According to the Fed:
To achieve [its] goals, the Fed, then and now, combines centralized national authority through the Board of Governors with a healthy dose of regional independence through the reserve banks. A third entity, the Federal Open Market Committee, brings together the first two in setting the nation’s monetary policy.
SOURCE: In Plain English
Precisely what imaginary gaggle of schoolchildren is this economic gibberish aimed at?
The simple truth, hidden behind the sleight of hand of economic jargon and magisterial titles, is that a banking cartel has monopolized the most important item in our entire economy: money itself.
We are taught to think of money as the pieces of paper printed in government printing presses or coins minted by government mints. While this is partially true, in this day and age the actual notes and coins circulating in the economy represent only a tiny fraction of the money in existence. Over 90% of the money supply is in fact created by private banks as loans that are payable back to the banks at interest.
Although this simple fact is obscured by the wizards of Wall Street and gods of money who want to make the money creation process into some special art of alchemy carefully overseen by the government, the truth is not hidden from the public.
In December 1977, the Federal Reserve Bank of New York published another of its dumbed-down, cartoon-ridden information pamphlets for the general public, attempting to explain the functions of the Federal Reserve System. There in black and white they carefully explain the money creation process:
“Commercial banks create checkbook money whenever they grant a loan, simply by adding new deposit dollars to accounts on their books in exchange for a borrower’s IOU.[…]Banks create money by ‘monetizing’ the private debts of businesses and individuals. That is, they create amounts of money against the value of those IOUs.”
There it is, in plain English: The vast majority of money in the economy, the “checkbook” money in our accounts at the bank and that we use in our electronic transfers and digital payments, is created not by a government printing press, but by the bank itself. It is created out of thin air as debt, owed back to the bank that created it at interest. This means that bank loans are not money taken from other bank depositors, but new money simply conjured into existence and placed into your account. And the bank is able to create much more money than it has cash to back up those deposits.
The Fed claims to be the entity overseeing and backing up the banking industry. It was established, according to its own propaganda, to stabilize the system and prevent bank runs like the Panic of 1907 from happening again:
Throughout much of the 1800s, almost any organization that wanted could print its own money. As a result, many states, banks, and even one New York druggist, did just that. In fact at one time there were over 30,000 different varieties of currency in circulation. Imagine the confusion.
Not only were there multitudes of currencies, some were redeemable in gold and silver, others were backed by bonds issued by regional governments. It was not unusual for people to lose faith both in the value of their currency and in the entire financial system. With many people trying to withdraw their deposits at once, sometimes the banks didn’t have enough money on hand to pay their depositors. Then when the funds ran out the banks suspended payment temporarily and some even closed. People lost their entire savings. Sometimes regional economies suffered.
Obviously something had to be done. And in 1913, something was. In that year, President Woodrow Wilson signed into effect the Federal Reserve Act. This act created the Federal Reserve system to provide a safer and more stable monetary and banking system.
SOURCE: The Fed Today
If that was indeed its aim, it signally failed to do so in running up one of the greatest bubbles in American history to that point in the 1920s, just a decade after its creation. The popping of that bubble, of course, led directly into the Great Depression and one of the greatest periods of mass poverty in American history. Economists have long argued that the Fed itself was the cause of the depression by its complete mismanagement of the money supply. As former Federal Reserve Chairman Ben Bernanke admitted in a speech commemorating Fed critic Milton Friedman’s 90th birthday: “Regarding the Great Depression. You’re right, we did it. We’re very sorry. But thanks to you, we won’t do it again.”
“Price stability” is another cited tenet of the Federal Reserve’s mandate. But here, too, the Fed has completely failed to live up to its own standards:
Aside from the banking system, the Federal Reserve has another responsibility that’s probably even more important. It’s in charge of something called “monetary policy.” Basically, it means trying to keep prices stable to avoid inflation. Say you buy a CD today for $14. But what if next year the price of the CD jumped to $20 or $50, not because of a change in supply or demand, but because all prices were going up. That’s inflation.
There are a lot of different causes of inflation, but one of the most important is too much money. The Fed can adjust the money supply by injecting money into the system electronically, or by withdrawing money from the economy.
Think of it: the Federal Reserve has the ability to create money, or make it disappear. What’s most important is what happens as a result. Any time the supply of money is altered, the effects are felt throughout the economy.
The Fed’s methods have changed over time to take advantage of the latest computers and electronics, but its mission remains the same: to aim for stable prices, full employment and a growing economy.
SOURCE: Inside The Fed
100 years ago, in 1913, the Fed was created, and we’ve marked it with a vertical line there. Consumer prices now are about 30 times higher than they were when the Fed was created in 1913.
Paper money, too, is the responsibility of the Federal Reserve. Hence the dollars in circulation are not Treasury notes, not bills of credit, but Federal Reserve Notes, debt-based notes backed up ultimately by the government’s own promise to pay, its “sovereign bonds” secured by the taxpayers themselves. At one time, the Federal Reserve Banks were legally required to keep large stockpiles of gold in reserve to back up these notes, but that requirement was abandoned and today the notes are backed up mostly by government securities. The Fed no longer keeps any actual gold on its books, but gold “certificates” issued by the treasury and valued not at the spot price of $1,300 per troy ounce, but an arbitrarily fixed “statutory price” of $42 2/9 per ounce.
Ron Paul: But I do have one question: During the crisis or at any time that you’re aware of, has the Federal Reserve or the Treasury participated in any gold swap arrangements?
Scott Alvarez: The Federal Reserve does not own any gold at all. We have not owned gold since 1934 so we have not engaged in any gold swaps.
Ron Paul: But it appears on your balance sheet that you hold gold.
Scott Alvarez: What appears on our balance sheet is gold certificates. When we turned in…before 1934, we did…the Federal Reserve did own gold. We turned that over by law to the Treasury and received in return for that gold certificates.
Ron Paul: If the Treasury entered into…because under the Exchange Stabilization Fund I would assume they probably have the legal authority to do it…they wouldn’t be able to do it then because you have the securities for essentially all the gold?
Scott Alvarez: No, we have no interest in the gold that is owned by the Treasury. We have simply an accounting document that is called “gold certificates” that represents the value at a statutory rate that we gave to the Treasury in 1934.
Ron Paul: And still measured at $42 an ounce which makes no sense whatsoever.
SOURCE: House Financial Services Subcommittee Hearings
Clearly, there is a discrepancy between what we are led to believe is motivating the Fed and what it actually does. To understand what the Fed is actually intended to do, it’s first important to understand that the Federal Reserve is not a bank, per se, but a system. This system codifies, institutionalizes, oversees, and undergirds a form of banking called fractional reserve banking, in which banks are allowed to lend out more money than they actually have in their vaults.
G. Edward Griffin: The process of decay and corruption starts with something called “fractional reserve banking.” That’s the technical name for it. And what that really means is that as the banking institution developed over several centuries, starting of course in Europe, it developed a practice of legalizing a certain dishonest accounting procedure.
In other words, in the very, very beginning (if you want to go all the way back), people would bring their gold or silver to the banks for safekeeping. And they said, “Give us a paper receipt, we don’t want to guard our silver and our gold, because people could come in in the middle of the night and they could kill us or threaten us and they’ll get our gold and silver, so we can ‘t really guard it, so we’ll take it to the bank and have them guard it and we just want a paper receipt. And we’ll take our receipt back and get our gold anytime we want.” So in the beginning money was receipt money. Then, instead of changing or exchanging the gold coins, they could exchange the receipts, and people would accept the receipts just as well as the gold, knowing that they could get gold. And so these paper receipts being circulated were in essence the very first examples of paper money.
Well, the banks learned early on in that game that here they were sitting on this pile of gold and all these paper receipts out there. People weren’t bringing in the receipts anymore, very few of them, maybe five percent, maybe seven percent of the people would bring in their paper receipts and ask for the gold. So they said, “Ah ha! Why don’t we just sort of give more receipts out then we have gold? They’ll never know because they only ask for, at the best, seven percent of it. So we can create more receipts for gold then we have. And we can collect interest on that because we’ll loan that into the economy. We’ll charge interest on this money that we don’t really have. And it’s a pretty good gimmick, don’t ya think?” And they go, “Well, yeah, of course.” And so that’s how fractional reserve banking started.
And now it’s institutionalized and they teach it in school. No one ever questions the integrity of it or the ethics of it. They say, “Well, that’s the way banking works, and isn’t it wonderful that we now have this flexible currency and we have prosperity” and all these sorts of things. So it all starts with this concept of fractional reserve banking.
The trouble with that is that it works most of the time. But every once and a while there are a few ripples that come along that are a little bit bigger than the other ripples. Maybe one of them is a wave. And more than seven percent will come in and ask for their gold. Maybe twenty percent or thirty percent. And well, now the banks are embarrassed because the fraud is exposed. They say, “Well, we don’t have your gold” “What do you mean you don’t have my gold!! I gave it to you and put it on deposit and you said you’d safeguard it.” “Well, we don’t have it, we loaned it out.” So then the word gets out and everyone and their uncle comes out and lines up for their gold. And of course they don’t have it, the banks are closed, and they have bank holidays. Banks are embarrassed, people lose their savings. You have these terrible banking crashes that were ricocheting all over the world prior to this time. And that is what caused the concern of the American people. They didn’t want that anymore. They wanted to put a stop to that.
And that was the whole purpose, supposedly, of the Federal Reserve System. Was to put a stop to that. But since the people who designed the plan to put a stop to it were the very ones who were doing it in the first place, you cannot be surprised that their solution was not a very good one so far as the American people were concerned. Their solution was to expand it. Not to control it, to expand it. See, prior to that time, this little game of fractional reserve banking was localized at the state level. Each state was doing its own little fractional reserve banking system. Each state, in essence, had its own Federal Reserve. Central banks were authorized by state law to do this sort of thing. And that was causing all this problem. So the Federal Reserve came along and said, “No no, we’re not going to do this at the state level anymore, because look at all the problem it’s causing. We’re going to consolidate it all together and we’re going to do it at the national level.”
SOURCE: Interview with G. Edward Griffin
The key to the system, of course, is who controls this incredible power to “regulate” the economy by setting reserve requirements and targeting interest rates. The answer to this question, too, has been deliberately obscured.
The Federal Reserve System is a deliberately confusing mishmash of public and private interests, reserve banks, boards and committees, centralized in Washington and spread out across the United States.
Andrew Gavin Marshall: So you have the Federal Reserve Board in Washington appointed by the President. That’s the only part of this system that is directly dependent on the government for input that’s the “federal” part: that the government—the [US] President, specifically—gets to choose a few select governors. The twelve regional banks—the most influential of which is the Federal Reserve Bank of New York, which is essentially based in Wall Street to represent Wall Street—is a representative of the major Wall Street banks who own shares in the private, not federal, but private Federal Reserve Bank of New York. All of the other regional banks are also private banks. They vary according to how much influence they wield but the Kansas City Fed is influential, the St. Louis Fed, the Dallas Fed, but the New York Fed is really the center of this system and precisely because it represents the Wall Street banks who appoint the leadership of the New York Fed.
So the New York Fed has a lot of public power, but no public accountability or oversight. It does not answer to Congress the way that the chairman of the Federal Reserve Board of Governors does and even the chairman of the Federal Reserve Board, who is appointed by the President, does not answer to the President, does not answer to Congress. He goes to Congress to testify, but the policy that they set is independent. So they have no input from the government. The government can’t tell them what to do, legally speaking, and of course they don’t.
Rep. John Duncan: Do you think it would cause problems for the Fed or for the economy if that legislation was to pass?
Ben Bernanke: My concern about the legislation is that if the GAO is auditing not only the operational aspects of our programs and the details of the programs, but is making judgments about our policy decisions, that would effectively be a takeover of monetary policy by the Congress, a repudiation of the independence of the Federal Reserve, which would be highly destructive to the stability of the financial system, the dollar, and our national economic situation.
SOURCE: Bernanke Threatens Congress
The Federal Open Market Committee is responsible for setting interest rates. Now this committee, which is enormously powerful, has as its membership the Governor and Vice Chair of the Federal Reserve Board, but on the Federal Open Market Committee most of the membership is the presidents of the regional Federal Reserve Banks representing private interests. So they have significant input in setting the interest rates. Interest rates are not set by a public body, they’re set by private financial and corporate interests. And that’s whose interests they serve, of course.
The reason that the Federal Reserve goes to such great lengths to make its organizational structure as confusing as possible is to cover up the massive conflicts of interest that are at the heart of that system. The fact is that the Federal Reserve System is comprised of a Board of Governors, 12 regional banks, and an Open Market Committee. The privately-owned member banks of each Federal Reserve Bank vote on the majority of the Reserve Bank’s directors, and the directors vote on members to serve on the Federal Open Market Committee, which determines monetary policy. What’s more, Wall Street is given a prime seat at the table, with tradition holding that the president of the powerful New York Federal Reserve Bank be given the vice chairmanship of the FOMC and be made a permanent committee member. In effect, the private banks are the key determinants in the composition of the FOMC, which regulates the entire economy.
According to the Fed, “its monetary policy decisions do not have to be approved by the President or anyone else in the executive or legislative branches of government, it does not receive funding appropriated by the Congress, and the terms of the members of the Board of Governors span multiple presidential and congressional terms.”
Or, in the words of Alan Greenspan: “The Federal Reserve is an independent agency, and that means there is no other agency of government that can overrule actions that we take.”
The Fed goes on in its self-mythologization to state that it is “not a private, profit-making institution.” This characterization is dishonest at best and an outright lie at worst.
The regional banks are themselves private corporations, as noted in a 1928 Supreme Court ruling: “Instrumentalities like the national banks or the federal reserve banks, in which there are private interests, are not departments of the government. They are private corporations in which the government has an interest.” This point is even admitted by the Federal Reserve’s own senior counsel.
Yvonne Mizusawa: Our regulations do specify overall terms for the lending, but the day to day operation of the banking activities are conducted by the Federal Reserve Banks. They are banks, and indeed they do lend…
Peter W. Hall: So they’re their own agency, then, essentially, in that regard.
Yvonne Mizusawa: They are not agencies, your honor, they are “persons” under FOIA. Each Federal Reserve Bank, the stock is owned by the member banks in the district, 100% privately held, they are private boards of directors. The majority of those boards are appointed by the independent banks, private banks in the district. They are not agencies.
SOURCE: Freedom of Information Cases
These private corporations issue shares that are held by the member banks that make up the system, making the banks the ultimate owners of the Federal Reserve Banks. Although the Fed’s profits are returned to the Treasury each year, the member banks’ shares of the Fed do earn them a 6% dividend. According to the Fed, the fixed nature of these returns mean that they are not being held for profit.
Despite the dishonest nature of this description, however, it is important to understand that the bankers who own the Federal Reserve indeed do not make their money from the Fed directly. Instead, the benefits are much less obvious, and much more insidious. The simplest way that this can be understood is that, as a century of history and the specific example of the last financial crisis shows, the Fed was used as a vehicle to bail out the very bankers who own the Fed banks in the most obvious example of fascistic collusion imaginable.
Michel Chossudovsky: A handful of financial institutions have enriched themselves as a result of institutional speculation on a large scale, as well as manipulation of the market. And secondly what they have done is that they have then gone to their governments and said, “Well, we are now in a very difficult situation and you need to lend us…you need to give us money so that we can retain the stability of the financial system.”
And who actually lends the money, or brokers the public debt? The same financial institutions that are the recipients of the bailout. And so what you have is a circular process. It’s a diabolical process. You’re lending money…no, you’re not lending money, you’re handing money to the large financial institutions, and then this is leading up to mounting public debt in the trillions. And then you say to the financial institutions, “We need to establish a new set of Treasury bills and government bonds, etc.,” which of course are sold to the public, but they are always brokered through the financial institutions, which establish their viability, and so on and so forth. And the financial institutions will probably buy part of this public debt so that in effect what the government is doing is financing its own indebtedness through the bailouts. It hands money to the banks, but to hand money to the banks, it becomes indebted to those same financial institutions, and then it says, “We now have to emit large amounts of public debt. Please can you help us?” And then the banks will say: “Well, your books are not quite in order.” And then the government will say: “Obviously they’re not in order because we’ve just handed you 1.4 trillion dollars of bailout money and we’re now in a very difficult situation. So we need to borrow money from the people who are in fact the recipients of the bailout.”
So this is really what we’re dealing with. We’re dealing with a circular process.
SOURCE: The Banker Bailouts
The 2008 crisis and subsequent bailouts are merely the latest and most brazen examples of the fundamental conflicts of interest at the heart of America’s privately-owned central banking system.
Beginning with the collapse of Lehman Brothers in September of that year, the Federal Reserve embarked on an unprecedented program of bailouts and special zero-interest lending facilities for the very banks that had caused the subprime meltdown in the first place. By the cartelization of the Federal Reserve structure, and thus not by accident, it was the very bank presidents who had overseen their banks’ lending practices that ended up in the director positions of the Federal Reserve Banks that voted on where to direct the trillions of dollars in bailout money. And unsurprisingly, they directed it toward their own banks.
A stunning 2011 Government Accountability Office report examined $16 trillion of bailout facilities extended by the Fed in the wake of the crisis and exposed numerous examples of blatant conflicts of interest. Jeffrey Immelt, chief executive of General Electric served as a director on the board of the Federal Reserve Bank of New York at the same time the Fed provided $16 billion in financing to General Electric. JP Morgan Chase Chief Executive Jamie Dimon, meanwhile, was also a member of the board of the New York Fed during the period that saw $391 billion in Fed emergency lending directed to his own bank. In all, Federal Reserve Board members were tied to $4 trillion in loans to their own banks. These funds were not simply used to keep these banks afloat, but actually to return these Fed-connected banks to a period of record profits in the same period that the average worker saw their real wages actually decrease and the economy on Main Street slow to a standstill.
Then Fed Chairman Ben Bernanke was confronted about these conflicts of interest by Senator Bernie Sanders upon the release of the GAO report in June 2012.
Ben Bernanke: Senator, you raised an important point, which is that this is not something the Federal Reserve created. This is in the statute. Congress in the Federal Reserve Act said, “This is the governance of the Federal Reserve.” And more specifically that bankers would be on the board…
Bernie Sanders: 6 out of 9.
Ben Bernanke: Sorry?
Bernie Sanders: 6 out of 9 in the regional banks are from the banking industry.
Ben Bernanke: That’s correct. And that is in the law. I’ll answer your question, though. The answer to your question is that Congress set this up, I think we’ve made it into something useful and valuable. We do get information from it. But if Congress wants to change it, of course we will work with you to find alternatives.
SOURCE: Conflicts at the Fed
Bernanke is completely right. These conflicts are in fact a part of the institution itself. A structural feature of the Federal Reserve that was baked into the Federal Reserve Act itself over 100 years ago by the bankers who conspired to cartelize the nation’s money supply. You could not ask for a more succinct reason why the Federal Reserve itself, this admitted cartel of banking interests, needs to be abolished…but you could get one.
Part Three: End the Fed
“They who control the credit of a nation, direct the policy of Governments and hold in the hollow of their hands the destiny of the people.” — Reginald McKenna
We now know that for centuries the people of the United States have been at war with the international banking oligarchs. That war was lost, seemingly for good, in 1913, with the creation of the Federal Reserve. With the passage of the Federal Reserve Act, President Woodrow Wilson consigned the American population to a century in which the money supply itself has depended on the whims of the banking cabal. A century of booms and busts, bubbles and depressions, has led to a wholesale redistribution of wealth toward those at the very top of the system. At the bottom, the masses toil in relative poverty, single-income households becoming double-income households out of necessity, their quality of life being slowly eroded as the Federal Reserve Notes that pass for dollars are themselves devalued.
Worse yet, the fraud itself perpetuates Alexander Hamilton’s persistent myth that a national debt is necessary at all. The US is now locked into a system whereby the government issues bonds to generate the funds for their operations, bonds that are backed up by the taxation of the public’s own labor.
The perpetrators of this fraud, meanwhile, remain in the shadows, largely ignored by a general public that could instantly recognise the latest Hollywood heartthrob or pop idol, but have no clue what the head of Goldman Sachs or the New York Fed does, let alone who they are. This cabal bear allegiance to no nationality, no philosophy or creed, no code of ethics. They are not even motivated by greed, but power. The power that the control of the money supply inevitably brings with it.
It did not take long for this lust for power to rear its head. In 1921, just seven years after the Fed began operations, the same J.P. Morgan-connected banking elite that founded the Federal Reserve incorporated an organization called the Council on Foreign Relations with the goal of taking over the foreign policy apparatus of the United States, including the State Department. In this quest, it was remarkably successful. Although there are only about 4,000 members in the organization today, its membership has included 21 Secretaries of Defense, 18 Treasury Secretaries, 18 Secretaries of State, 16 CIA directors, and many other high-ranking government officials, military officers, business elite, and, of course, bankers. The first Director of the CFR was John W. Davis, J.P. Morgan’s personal lawyer and a millionaire in his own right.
Together with its sister organizations in Britain and elsewhere around the world, these groups would work together toward what they called a “New World Order” of total financial and political control directed by the bankers themselves. As Carroll Quigley, noted Georgetown historian and mentor of Bill Clinton, wrote in his 1966 work, Tragedy and Hope: A History of The World In Our Time:
“The powers of financial capitalism had [a] far-reaching aim, 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 Basel, Switzerland, a private bank owned and controlled by the world’s central banks which were themselves private corporations.”
This is why the bankers and their partners in government and business conspired to bring about the 2008 crisis. Not for the pursuit of money, but power. In the same way the bankers used the Panic of 1907 to consolidate their control over the money supply, they hope to use the 2008 crisis and subsequent panics, which they themselves have created, to consolidate their political control.
The inevitable conclusion, one that flows necessarily from the true understanding of this situation, is that the Federal Reserve system needs to be consigned to the dustbin of history. After a century of enslavement, it is time for the American public to finally throw off the bankers’ debt chains.
Andrew Gavin Marshall: If there was ever a point in human history to start questioning alternatives, this would be it. And to think that where we are…and simply say, “Oh, well this is the best of our options,” how many of the best options lead to self-destruction? Doesn’t sound like a best option.
I think that with a world of seven billion people, we can probably come up with something better than a system in which a few thousand people benefit so much at the expense of everything else on this world and at the expense of the potential for the future of mankind. They’re leveraging our future, and so long as we accept this way of thinking, so long as we accept these institutions as having dominance, that’s the direction we’ll be going.
So I think reform is a good way to try and stall and to push back directly against the expanding and evolving power structures, but radical change is what’s really needed, and that has to be built from the bottom up. But I think that these two processes can and should go together in parallel.
If you’ve made it this far, congratulations. You are now better informed on the economic history of the United States and the truth about the Federal Reserve than 99% of the population. If you do nothing else, then just working to get those around you educated on this information alone will have a profound effect. Once they learn of the scam, many are motivated to do something about it, and they, in turn, inform others. This is the viral nature of suppressed truth, and it is the reason that more people are aware of and energized by the issue of the Federal Reserve and the nature of money than ever before.
Perhaps even more amazingly, this movement is spreading to other parts of the globe. Recognizing the interlocking nature of the modern global economy, and the international nature of the banking oligarchy, movements to abolish the Federal Reserve have sprung up in Europe, where protests against the cartelized central banking system are taking place in over 100 cities attracting 20,000 people on a weekly basis.
Lars Maehrholz: I started this movement because I realized that the Federal Reserve Act, in my opinion, is one of the worst laws in the whole world. So a private banking company is lending America the money, and in my opinion is not democratic anymore. The Federal Reserve tells the government what to do, and that’s the problem.
Luke Rudkowski: It’s a very big problem, especially in the U.S. Why is it a global issue, and why are people doing it here in Germany?
Lars Maehrholz: Because when you realize that this finance system, it’s a global system, you have to go really to the beginning of the system. And in my opinion, it’s also the World Bank and the International Monetary Fund and stuff like this, but at the beginning of all this is a law from 1913. Woodrow Wilson signed it, and this is the beginning of all this hardcore capitalism we are now suffering from. And the only way to stop this is maybe to break this law.
SOURCE: Establishment is Afraid of End The Fed Movement in Germany
But what if the burgeoning movement to End The Fed is successful? What system do people propose as the answer? There have been several proposals along different lines by various researchers. Some argue for a return to America’s colonial roots of debt-free money issued by state-run banks, pointing to the Bank of North Dakota as one already functioning, successful model of this approach.
Ellen Brown: We’ve had two banking systems ever since the 1860’s with the state bank system and the federal bank system, and the federal bank system are the big Wall Street banks particularly. They dominate the federal system. So, they’re taking over right now. In California we don’t even have any local banks where I am. We had two and I had accounts in both of them and now one of them is Chase Bank and the other is U.S. Bank. So they’re both big Wall Street banks now that have been taken over.
So it’s the local banks that have an interest in serving the local business. The big banks have no interest in making loans to local businesses; it’s too risky, why should they bother? They’ve got this virtually free money they can get from the Fed and from each other and it’s much more lucrative to them either to speculate in commodities or other thing abroad, or what works very well for them is to buy long-term government bonds at 3% because these have no capital requirement. The capital requirements for government bonds are zero. So they can buy all of those that they want. Whereas if they make loans for mortgages or they make loans to businesses then they have to worry about the capital requirement and as soon as they’ve used up all their capital—in other words eight dollars in capital will get you a hundred dollars of loans—then they can’t make any more loans they have to wait for thirty years for the loans to get paid off. So what they do if they do buy mortgages is sell them off too investors and so that’s the whole mortgage-backed security scam that we’ve seen. They had no motivation to make sure that these borrowers were actually sound borrowers; they just wanted to make a sale. So they sold the stuff to the unwary investors who might be somebody in Iceland or Sweden or pension funds. So that didn’t work out so well.
So a state bank partnering with the local banks can provide the capital. It can help them with capital. In North Dakota the state bank guarantees the loans of the local banks, allowing them to make much bigger loans than they could otherwise. The state bank provides liquidity to the small banks. That’s why the local banks aren’t making loans to small business right now, because they don’t know that they can get money from the other banks as needed. The way banking works is they make the loan first. I mean, if you have credit lines to many different businesses and if they all hit up their credit lines at once you are going to run out of money. So you don’t dare do that unless you know that you can get short-term loans from the other banks. And so what’s happening right now, even though there’s $1.6 trillion is excess reserves sitting on the books of the big banks, they’re not available to the little banks and the reason is because the Fed is paying 0.25% interest on those reserves. So the banks have no incentive to lend them to the little banks. Why let go of them when you can make just as much keeping them and then you still have your reserves and you can use them as collateral to buy bonds or something that’ll make you more money?
So the whole system is messed up and in North Dakota, the bank of North Dakota provides liquidity for these local banks.
SOURCE: Ellen Brown: Finance Capital vs. Public Banking
Others advocate a decentralized system of alternative and competing currencies that greatly reduce or even eliminate altogether the need for a central bank.
Paul Glover: Well, 22 years ago in Ithaca, New York I noticed there were a lot of people, friends particularly, that had skills and time that were not being employed or respected by the prevailing economy. While we had much desire to create things and trade them with each other and many services we could provide to each other, we didn’t have the money. So since I have a background in graphic design, journalism and arrogance I went to my computer and designed paper money for Ithaca, New York. I designed pretty colourful money with pictures of children, waterfalls and trolley cars denominated in hours of labor. One-hour note, half-hour, quarter, eight-hour notes and two-hour notes. I then began to issue to each of those pioneer traders who had agreed to being listed in the directory a specific starter amount, and the game began. An hour has been worth basically $10 U.S. dollars which at that time 20 years ago was double the minimum wage. People who usually expect more than $10 per hour of their service can charge multiple hours per hour but the denomination puts between us as residents of our community, that reminds us that we are fellow citizens, not merely winners or losers scrambling for dollars. It introduces us to each other on the basis of these skills and services that we have, that we are more proud to provide for each other than often is the case with a conventional job. Just the stuff we have to do to get the money to pay the bills.
So through that trading process, that more intimate scale process within the community, we’re more easily able to become friends and lovers and political allies.
James Corbett: It’s an inspiring story and tell people about how much money has circulated through this community. I mean, it’s important for people to understand just how successful this has been.
Paul Glover: Because we are not a computer system we don’t have a specific volume of trading recorded but by the grapevine, by phone surveys and over the years watching the money move we were able to guess very reliably that several million dollars equivalent of this money has transacted over those years. Making loans without charging interest up to $30,000 value, which is the fundamental monetary revolution in our system. Then as well, making grants of the money to over a hundred community organizations.
SOURCE: Avoiding Economic Collapse: Complementary Currencies
Some argue for currencies whose mathematical nature prevent them from being merely conjured into existence whenever a federal government wants to wage another war of aggression or forge another link in the seemingly endless train of governmental tyranny and abuse.
Roger Ver: What people have to understand about bitcoin is that it’s a completely decentralized network. There’s no central server, there’s no controlling company, there’s no office, it’s just free software that anyone can download and start running on their computer anywhere in the world. And that the bitcoins themselves can be transferred to or from anyone, anywhere in the world and it’s impossible for any bank or government or entity to block you from sending or receiving those bitcoins. There’s a limited supply of those bitcoins, there will never ever be any more than 21 million bitcoins. So, like everything the price is set based on supply and demand. Because the supply of bitcoins is limited and the demand is increasing as more and more people start to use them and more and more websites start to accept them, the price of bitcoins in terms of dollars is going to have to increase, even a lot more than the $500 per bitcoin that it is today.
James Corbett: Are there any drawbacks at all to the idea of using a crypto-currency?
Roger Ver: If you’re part of the current power elite that can just print money at will to spend on whatever you feel like, then, yeah, the world switching over to bitcoin is probably not going to benefit you. But if you’re one of the normal people that aren’t working for the Federal Reserve or any central bank that’s printing money to pay to your friends and that sort of thing, then a bitcoin world is a wonderful thing for you.
SOURCE: How to Defund the System: Bitcoin vs. the Central Banksters
Sound money. Cryptocurrencies. State banks. LETS programs. Self-issued credit. These and many other solutions have all been proposed and many of them are in use in different localities today. Information on all of these ideas and how they are being applied in various parts of the world is widely available online today. The point is that the question of what money is and how it should be created is perhaps the single greatest question facing humanity as a whole, and yet it is one that has been almost completely eliminated from the national conversation…until recently.
For the first time in living memory, people are once again rallying around the monetary issue, and American politics stands on the threshold of a transformation almost unimaginable just two decades ago.
And so the rest of the story is now in our hands. Once we understand the scam that has taken place, the gradual consolidation of wealth and power in the hands of an elite few banking oligarchs and the growing impoverishment of the masses, all in the name of banking funny money created out of nothing and loaned to the public at interest, we can choose to get active or to do nothing at all.
For those who choose to get active, there are some steps that you can take to help change the course of this system:
1) Follow the links and resources from the transcript of this documentary at corbettreport.com/federalreserve to familiarize yourself with the history, the connections and the functions of the Federal Reserve system. If you can’t explain this material to yourself then you will never be able to teach it to others.
2) Begin reaching out to others to bring them up to speed on the issue. It can be as simple as broaching this conversation in the Monday morning water cooler talk or passing out a copy of this documentary or sending out links to this information to your email list. Insert this topic into your conversations. When people start talking about the national debt or the state of the economy or other political talking points, get them to question the roots of these issues, and why there is a national debt at all.
3) When you are able to find or create a group of like-minded people in your area who are engaged with the issue, start a study group on the issue and its solutions. The study group can help source alternative or complementary currencies in the local area, or, if none exist already, the group can form the basis for a community of local businesses and customers who are willing to start experimenting with ways to wean themselves off of the Federal Reserve notes.
4) Use the resources at corbettreport.com, including the Federal Reserve information flyer, or hold DVD screenings, to attract interest in your group and draw others into studying the true nature of the monetary system.
The work of building up an alternative to the current system can seem daunting, even at times overwhelming. But it’s important to keep in mind that the Federal Reserve System that seems so monolithic today has only been around for one century. Central banks have been defeated in America before and they can be defeated again.
The question of how we decide to change this system is not rhetorical; it will either be answered by an informed, engaged, active population working together to create viable alternatives and to dismantle the current system, or it will be answered by the same banking oligarchy that has been controlling the money supply, and indeed the lifeblood of the country, for generations.
Now, one century after the creation of the Federal Reserve System, we have a choice to make: whether the next century, like the one before it, will be a century of enslavement or, transformed by the actions and choices that we make in the light of this knowledge, a century of empowerment.
The National Economic Security and Recovery Act original pioneered by General Roy Schwasinger http://annavonreitz.com/gesara.pdf
By Anna Von Reitz
I am sorry, but the real General Roy Schwasinger, who was a long-time friend of my Mother's and many of the other desperate Wisconsin dairy farmers who joined the NFO back in the 1970's, 80's and 90's, would turn over in his grave if he heard the claptrap now being spread about NESARA. And the so-called GESARA, the Global Government version 2.0--- would not be at all well-received, either.
Please note that the writers of all these articles about NESARA never nail the name of the legislation down.
Pay attention--- very close attention---to the words. Those who have read my articles about the Great Fraud which has been engulfing our nation and the entire world will be familiar with this con artist technique called "mirroring". The perpetrators set up two (or more) deceptively similar names and confuse people deliberately. It works hand in hand with another con job technique called "Bait and Switch"---- you offer a superior product or deal, and at the last minute "switch" to a much lower grade product.
The classic example is buying a Thoroughbred race horse named "Glory and Honor" and being shown a beautiful, high-spirited, young animal named "Glory n' Honour"--- only to sign on the dotted line and receive instead "Glory and Honor"---- a Thoroughbred race horse, all right, the Great-Great-Great-Grandsire of the horse you thought you were buying. First, you are confused by the deceptively similar names, and then second, you make natural, innocent----but wrong--- assumptions about the information you've been given, and third, acting upon those wrong assumptions you commit to buying something or supporting an action that brings unexpected and unfortunate results.
This is happening with NESARA, too. The anonymous writers of these Intel-Updates routinely talk about the "National Economic Security and Recovery Act" which Schwasinger pioneered, and in the same breath, they talk about the "National Economic Stability and Recovery Act"--- note the deceptively similar names? They talk up the great popular selling points of the actual, original NESARA legislation and associate it with competent and honorable men like Schwasinger-----
and then having garnered popular support for something called "NESARA"----- substitute and push through the ringer legislation which is also called "NESARA". The same trick is being used to mask the actual Economic Stability Fund and confuse it with the deceptively named Economic Security Fund, both of which are abbreviated "ESF" so that it is impossible for anyone to know which fund the rats are talking about at any given moment, except from context.
The Economic Stability Fund was established to control the amount of various national and private currencies in circulation and keep the fiat money system in balance. The world's top bankers could determine, for example, that there were too many Yen in circulation (in their opinion anyway) and the Japanese economy was exploding due to a ready money supply. If this was not in line with their plans --- for example, to take over the Japanese auto manufacturing sector---they would simply use other currencies from the Economic Stability Fund to buy up large quantities of Yen on the world market and remove them from circulation. Reducing supply of a currency hedges it against inflation but it also puts a curb on the growth of the targeted national economy. In this way, the bankers manipulated and controlled both money supplies and national economies at will.
This Fund was created by agreement and collusion among the major central banks--- they simply printed up more or less of specific fiat currencies----and kept "pushing" and "pulling" currency supplies around using the Economic Stability Fund to do it. Imagine that you are a gardener and you have an array of fertilizers to choose from---- organic and inorganic, bone meal, fish meal, blood meal, phosphorus, potassium, calcium, manure..... and you can choose which sector of the garden gets fertilized and which does not, and which fertilizers are applied and in what amount. This is essentially the position that the major central bankers garnered for themselves---- the Economic Stability Fund has functioned as their fertilizer supply warehouse. This is the "$800 trillion dollars" these yahoos are talking about that was supposedly discovered during a military audit of the Federal Reserve in the early 1990's.
They neglect to tell you that this vast stockpile of currency was only denominated in "dollars"---- and that it is actually composed of all world currencies and that it has been used to manipulate the supply of all world currencies. It did not come from the "US Taxpayers". It came from printing presses and digital account ledgers controlled and manipulated by Central Banks and it represents the single largest counterfeiting and commodity market rigging scheme in world history. They also neglect to tell you why you are finally hearing about this and something is finally being done about it going on thirty years after the fact.
The Economic Security Fund is a different animal entirely, but also represents a vast asset fund compiled to secure the US Dollar and buffer it against outside manipulation of the kind just described. The focus of this Fund was not to manipulate world monetary supplies, per se, but to guarantee the position of the USD as a Reserve Currency.
Advanced digital counterfeiting by foreign nations including Thailand, the Philippines, and China have effectively undermined the operations of these funds and the entire kingdom of paper created by the central banks. Those of you who have your thinking caps on should be asking yourselves some highly interesting questions right about now--- like, why is the military involved in any of this? Why General Schwasinger? Why the Chief of Naval Operations? And if the military Top Brass has been aware of this criminality since the 1990's, why haven't they taken action to put an end to it?
The short answer is that the military is at the root of the problem and since 1863 always has been. In that year, President Abraham Lincoln adopted the Lieber Code and issued General Order 100 as Commander-in-Chief. This placed the responsibility for our nation's future and for the security of our money in the hands of the Grand Army of the Republic and General Ulysses S. Grant----who was a tough soldier, a decent man, and didn't know diddly about international finance. The next day, Lincoln bankrupted the original United States (Trading Company) and relinquished his position as Chief Executive Officer. He continued to function in the Office of Commander-in-Chief. Every United States President since then has executed his office by acting as the Commander-in-Chief. And the responsibility for protecting our money has remained with the military, too.
The problem is that the military depends on the politicians for its own funding, a basic conflict of interest and powers. The present situation with General Dunford and the "treasury" in Reno and what they are calling the "New Republic" speaks volumes about this same conflict. The actual United States Treasury ceased to exist in 1924 and throughout my lifetime whatever United States Treasury there has been, equates with the International Monetary Fund.
That's why the US Secretary of the Treasury is the head of the IMF Board of Governors. The military has been charged with protecting our money, but our money has, at the same time, been used by the bankers and politicians to keep the military from actually doing its job. An uneasy see-saw of conflicted interests has been the result. On one hand, the military has held its mandate to protect the nation's money over the banker's heads, and on the other, it has been stuck begging for their own budget from politicians who are controlled by the bankers. Around and around it goes, with the military for the most part scowling and shuffling and letting the bankers and politicians do whatever they want, in exchange for ample defense budgets.
That may be cruel to say and in a few cases of individuals who have fought the fight, like Roy Schwasinger, even unjust, but the proof is in the pudding overall---- and that proof shows that despite knowing about the criminality of the Central Bankers and the unauthorized usurpation of the members of Congress, our military has failed to take any truly effective and meaningful action and it remains to be seen whether they will do anything now. Like all the other so-called "federal functions" the US Military has been largely privatized and has been manipulated into functioning as an international commercial
mercenary force. They have been used and abused as the muscle behind the private profit agendas of the bankers and politicians for generations----rubber and drugs in Vietnam, oil and more drugs in the Middle East, minerals and drugs in Africa. In 2015 the Queen (SERCO) stopped paying the US Military payroll. This caused a brief panic worldwide, because in addition to its unsavory duties, the US Military has also performed the role of international policeman. Hence, we had Karen Hudes jumping up and down and claiming that our military might would be decimated and claiming that she was in control and that the World Bank would have to come save us------after stealing us blind. The Chinese volunteered to take over the policeman duties The UN accepted. La-Dee-Dah.
General Dunford and the rest of the Joint Chiefs were placed between a rock and a hard place, but not for long. The Central Bank of FRANCE (which also funded the International Monetary Fund (IMF) and through the IMF created the now-being liquidated UNITED STATES, INC.) in the person of its chief stockholder, Jacob Rothschild, came to the rescue.
The motivations for doing so are plain to see. The International Monetary Fund is the off-shoot of the Bank of France and the IMF is in deep trouble if it can't recoup by forcing the Americans to pay off the Odious Debts that it has racked up and charged off to our accounts without our knowledge and consent. Therefore, it becomes important to the Bank of France (and Jacob Rothschild) to keep the US Military in guns and ammo. Not only can he charge us royally for this "service" but he can then continue to use the US Military as a counterpoint to safeguard European investments worldwide.
So the so-called "New Republic" was born as a bastard of necessity, as a result of European banking interests hauling their own fat out of the fire and seeking to maintain control of American trade and foreign policies, natural resources, and labor assets. And since the IMF and the regime we have endured since 1946 calling itself the UNITED STATES and this current "New Republic" effort are all French-based, this is why I have dubbed it "La Neu Republique".
It has nothing to do with honoring The Constitution. The same group of hoodlums has been in control of the UNITED STATES, INC. since 1946 and as we can all testify, honoring The Constitution has never been their practice in the past and we have no reason to think that it will be in the future--- aside from all the lip-service being given to it now. So Bah-Humbug on La Neu Republique. I am sure we are all grateful to Jacob for saving his own bacon and in the process preserving European civilization as we know it, but on the other hand, we are not happy with the service we have received in the past and have no desire to be the goats in yet another round of fraud and pillaging. This is why we have said "thanks, but no thanks" to any claim that the "New Republic" is the Successor to Contract and why we have counter-offered a pay-aswe-go arrangement pending full disclosure and a national plebiscite in which Americans can finally and freely choose their course going forward.
As for the "Dragon Families" and all the Hoorah associated with that line of propaganda---- ask yourselves: "Would Mao allow Chinese Elders in possession of the world's gold reserves to get by unscathed in the midst of building the People's Republic of China?" And the answer is? Also ask yourselves---- if these "Chinese Elders" are so rich and so philanthropic in nature, where have they been the last several hundred years? And why have the people of China been kept so poor? Because all this talk about "Chinese Elders" is, generally speaking, and with rare exceptions, tripe. Just another cover story, more lies, more cloak and dagger. It's true that the Chinese people were owed a large sum of gold, plus interest, from the New York Federal Reserve, which had had the gold on deposit from the former Nationalist Chinese government since 1928. It's true that when the People's Republic of China discovered this fact, they brought suit through Neil Keenan in New York District Court to recover the gold on deposit. It is also true that Neil's efforts stalled out, initially, because the Court admitted that the entity he was attempted to sue was bankrupt and had been discharged in bankruptcy as of 1999, so that he and the Chinese were trying to get blood out of a turnip and asking the Court to provide relief that simply couldn't be provided. I have supported Keenan's effort in this regard since the outset of it. That gold was owed to the Chinese fair and square and no doubt about it. Just as $387 billion worth of gold being held by Karen Hudes' "Global Debt Facility" belongs in fact to the American People it was confiscated from back in the 1930's and their children and grandchildren and great-grandchildren.
Thanks to a standing case in the World Court brought by Dr. Hendo Henderson in 2002, the Chinese were finally able to collect on the debt owed to them by the New York Federal Reserve and that formed the first basis of their sudden, inexplicable wealth. But there is more going on here than simply recouping gold deposits and interest owed from a long time ago. I have reason to believe that we are in the process of witnessing another "Vanishing".
This is the article Anna is replying to in her comments above.
On Tue, Oct 25, 2016 at 9:56 PM, Mike Young wrote:
Federal Reserve to New Republic via a Global Currency Reset 11:27:00 AM
Emailed, Intel, News Emailed to Dinar Chronicles:
Federal Reserve to New US Republic via a Global Currency Reset
The Global Currency Reset is a complicated process about a global reset of currencies, removal of the Khazarian Mafia and restoration of the US Republic and the original US Constitution. At present the process is playing out with no holds and is expected to be completed within days. Below is a history of that process, including forming of the US New Republic, integration of the Federal Reserve into the new US Treasury in Reno, expected changes in the US tax system, expected release of the 800 numbers and relationship of Humanitarian Projects to $800 trillion in US taxpayer monies gained from a 1992 audit of the Federal Reserve. The higher Contract Rates are available, especially if you are dedicating a good percentage of your monies to Humanitarian Projects. Those higher rates are said to be funded out of $800 trillion in US taxpayer monies that were illegally taken by the Federal Reserve during the Bush Administration, then confiscated during the 1992 Federal Reserve audit. At present the monies are in European bank accounts awaiting the GCR. History of the New Republic and Global Currency Reset Process:
1. Please refer to a short trailer of the to-be-released documentary "Eagle One to Wanta." The major film documentary covers how President Reagan's secret agent Ambassador Lee Emil Wanta amassed 3.8 trillion through a negotiated agreement with Soviet Secretary General Mikhail Gorbachev during the fall of the Soviet Union. The 3.8 trillion was designed to go back to the American people but was stolen by the Federal Reserve System. Wanta has pledged to eliminate our national debt overnight after a 2006 US District Court mandate is honored that would return the money. The documentary is scheduled to be released upon announcement of the New Republic around July 4 2016: http://eagleonetowanta.com/
2. Since it's inception the US monetary system has been owned and run by the Cabal known as the Khazarian Mafia, North American Union and U.S. Incorporated (Corporation of the United States), which is simply a privately owned Maritime Corporation out of Puerto Rico.
3. The US Federal Reserve is not connected to the US government. The Cabal owners are membered by influential world powers like the Vatican, European Royalty and private families such as George Soros, Rothschilds, Carnegies and Rockefellers. Cabal monies are commonly laundered through the Vatican Bank.
4. The current version of the privately owned Federal Reserve system started around 450 years ago at the creation of the Vatican Trust by ancient Royal Families. One of the major Royal funding streams reached it's term and was cut off at the start of Dec. 2015, opening the door for closure of the Federal Reserve and implementation of the new US Treasury.
5. The Federal Reserve Bank is composed of a group of private Central Banks whose main interest is serving the Cabal.
6. The Global Currency Reset has become part of the take-down of this illegal US corporate government through formation of the US New Republic, new US Treasury and new US currency notes backed by natural resources and gold of the Royal Dragon Families. The Dragon Families are based in the Philippines and are not connected to, nor claim to be influenced by the Chinese government.
7. US Federal Reserve Notes are backed by gold (borrowed from the Royal Dragon Families after World War II), but only used for government and trade purposes. This monetary system functions under the non-US government owned North American Union.
8. The Federal Reserve Notes (FRNs) that are used by US citizens have no backing at all and is referred to as fiat currency.
9. The United States is the only country on the planet that does not have its own national currency. One of the purposes of the Global Currency Reset is for the US to secure our own asset-backed currency.
10. For years the Cabal has fought implementation of the GCR since it takes away a lot of their power and monetary gain including closure of their privately owned Federal Reserve.
11. Since inception of the US, citizens have been forced to buy their Federal Reserve Note currency, along with paying interest on it, from the privately owned Federal Reserve.
12. The US Internal Revenue Service came on shore as a Delaware Corporation back in 1934 and was immediately purchased by an attorney firm which then incorporated the Delaware Corporation.
13. Eventually the IRS ended up in a holding company known as the Northern Trust Company which also owns the state and US Bar Associations. For all intents and purposes the IRS and US Bar Association are essentially the same entity.
14. The Federal Reserve Note had interest attached to it which helped to create our nation's well over 17 trillion dollar national debt (some say we are actually over 100 trillion in debt).
15. The Dragon Families excused that debt when their gold was placed in the new US Treasury in Reno last week. This included excusing debt and derivatives of the Wells Fargo Bank, which is owned by the Dragon Families, plus the derivatives of certain other banks. (There is question about excusing debt and derivatives of Bank of America since it is heavily used by the Cabal).
16. In 1991 Roy Schwasinger went before a senate committee to present evidence of the international bankers and government criminal activity through the Federal Reserve. He informed them how the Corporation of the United States was tied to the establishment of a New World Order which intended to bring about a fascist One World Government ruled by the international bankers.
17. In 1992 a task force was put together consisting of over 300 retired and 35 active US military officers who strongly supported Constitutional Law. This task force was responsible for investigating governmental officials, Congressional officers, judges, and the Federal Reserve
18. The task force included Chief of Naval Operations Admiral Jeremy Boorda, General David McCloud and Former Director of Central Intelligence, William Colby. They uncovered the common practice of bribery and extortion committed by both senators and judges. The criminal activity was so rampant that only two out of 535 members of Congress were deemed honest. More importantly, they ordered and carried out the first-ever (and only) audit of the Federal Reserve.
19. The Federal Reserve was accustomed to giving orders to politicians and had no intentions of being audited. However, after they were informed their offices would be raided under military gunpoint if necessary, they complied with the investigation. After reviewing their files the military officers found $800 trillion dollars sitting in accounts which should have been applied to the national debt. Contrary to federal government propaganda, they also discovered that most nations owed money to the United States instead of the other way around. 20. These hidden trillions were then confiscated and placed into European bank accounts in order to generate the enormous funds needed to pay a successful Farmers Claims class action lawsuit that helped to instigate the 1992 Federal Reserve audit. Later this money would become the basis of the GCR Prosperity Programs fulfilling Humanitarian needs across the planet. 21. Despite these death blows, President George H.W. Bush and the Illuminati continued on with their plans of global enslavement. In August 1992 the military officers confronted President Bush and demanded he sign an agreement that he would return the United States to Constitutional Law and ordered him to never use the term New World Order again. 22. Bush pretended to cooperate, but secretly planned to bring about the New World Order anyway. He set out to sign an Executive Order on December 25, 1992 that would have indefinitely closed all banks, giving Bush an excuse to declare martial law. Under the chaos of martial law, Bush intended to install a new Constitution which would have kept everyone currently in office in their same position for 25 years, plus it would have removed all rights to elect new officials. The military intervened and stopped Bush from signing that Executive order. 23. In 1993 members of the Supreme Court, certain members of Congress and representatives from the Clinton government met with high ranking US military officers who were demanding a return to Constitutional Law, reforms of the banking system and financial redress. Clinton, however, was a proponent of the New World Order and as a result, nothing of substance was done. 24. NESARA - National Economic Stabilization and Recovery Act - is the most ground breaking reformation to sweep the US. The act does away with the Federal Reserve Bank, the IRS, the shadow government, and implements the following changes: A. Zeros out all credit card, mortgage, and other bank debt due to illegal banking and government activities. This is the Federal Reserve’s worst nightmare, a “jubilee” or a forgiveness of debt. B. Abolishes the US income tax. C. Abolishes the IRS. Employees of the IRS will be transferred into the US Treasury national sales tax area. D. Creates a 14% flat rate non-essential ne18. The task force included Chief of Naval Operations Admiral Jeremy Boorda, General David McCloud and Former Director of Central Intelligence, William Colby. They uncovered the common practice of bribery and extortion committed by both senators and judges. The criminal activity was so rampant that only two out of 535 members of Congress were deemed honest. More importantly, they ordered and carried out the first-ever (and only) audit of the Federal Reserve.
19. The Federal Reserve was accustomed to giving orders to politicians and had no intentions of being audited. However, after they were informed their offices would be raided under military gunpoint if necessary, they complied with the investigation. After reviewing their files the military officers found $800 trillion dollars sitting in accounts which should have been applied to the national debt. Contrary to federal government propaganda, they also discovered that most nations owed money to the United States instead of the other way around.
20. These hidden trillions were then confiscated and placed into European bank accounts in order to generate the enormous funds needed to pay a successful Farmers Claims class action lawsuit that helped to instigate the 1992 Federal Reserve audit. Later this money would become the basis of the GCR Prosperity Programs fulfilling Humanitarian needs across the planet.
21. Despite these death blows, President George H.W. Bush and the Illuminati continued on with their plans of global enslavement. In August 1992 the military officers confronted President Bush and demanded he sign an agreement that he would return the United States to Constitutional Law and ordered him to never use the term New World Order again.
22. Bush pretended to cooperate, but secretly planned to bring about the New World Order anyway. He set out to sign an Executive Order on December 25, 1992 that would have indefinitely closed all banks, giving Bush an excuse to declare martial law. Under the chaos of martial law, Bush intended to install a new Constitution which would have kept everyone currently in office in their same position for 25 years, plus it would have removed all rights to elect new officials. The military intervened and stopped Bush from signing that Executive order.
23. In 1993 members of the Supreme Court, certain members of Congress and representatives from the Clinton government met with high ranking US military officers who were demanding a return to Constitutional Law, reforms of the banking system and financial redress. Clinton, however, was a proponent of the New World Order and as a result, nothing of substance was done.
24. NESARA - National Economic Stabilization and Recovery Act - is the most ground breaking reformation to sweep the US. The act does away with the Federal Reserve Bank, the IRS, the shadow government, and implements the following changes: A. Zeros out all credit card, mortgage, and other bank debt due to illegal banking and government activities. This is the Federal Reserve’s worst nightmare, a “jubilee” or a forgiveness of debt. B. Abolishes the US income tax. C. Abolishes the IRS. Employees of the IRS will be transferred into the US Treasury national sales tax area. D. Creates a 14% flat rate non-essential neew items only sales tax revenue for the government. In other words, food and medicine will not be taxed, nor will used items such as old homes. E. Increases benefits to senior citizens. F. Returns Constitutional Law to all courts and legal matters. G. Reinstates the original Title of Nobility amendment. H. Establishes new Presidential and Congressional elections within 120 days after NESARA’s announcement. The interim government will cancel all National Emergencies and return us back to Constitutional Law. I. Monitors elections and prevents illegal election activities of special interest groups. J. Creates a new U.S. Treasury rainbow currency backed by gold, silver, and platinum precious metals, ending the bankruptcy of the United States initiated by Franklin Roosevelt in 1933. K. Forbids the sale of American birth certificate records as chattel property bonds by the US Department of Transportation. L. Initiates a new U.S. Treasury Bank System in alignment with Constitutional Law. M. Eliminates the Federal Reserve System. During the transition period the Federal Reserve will be allowed to operate side by side of the new U.S. Treasury for one year in order to remove all Federal Reserve notes from the money supply. N. Restores financial privacy. O. Retrains all judges and attorneys in Constitutional Law. P. Ceases all aggressive, U.S. government military actions worldwide. Q. Establishes peace throughout the world. R. Releases enormous sums of money for humanitarian purposes. S. Enables the release of over 6,000 patents of suppressed technologies that are being withheld from the public under the guise of national security, including free energy devices, antigravity, and sonic healing machines.
25. Late one evening on March 9, 2000, a written quorum call was hand-delivered by Delta Force and Navy SEALs to 15 members of the US Senate and the US House who were sponsors and co-sponsors of NESARA. They were immediately escorted by the Delta Force and Navy SEALs to their respective voting chambers where they passed this National Economic Security and Reformation Act.
26. These 15 members of Congress were the only people lawfully allowed to hold office in accordance with the original 13th Amendment. Remember British soldiers destroyed copies of the Titles of Nobility Amendment (TONA) in the war of 1812
because it prevented anyone who had ties to the crown of England from holding public office.
27. President Clinton had no interest in signing NESARA into law. On October 10, 2000 and under orders from U.S. military generals, the elite Naval Seals and Delta Force stormed the White House. Under gunpoint, they forced Bill Clinton to sign NESARA. During this time Secret Service and White House security personnel were ordered to stand down, were disarmed, and allowed to witness this event under a gag order. President Clinton also relinquished his bar registry.
28. From its very inception Bush Sr., Clinton, the corporate government, major bank houses, and the Carlyle group have opposed NESARA. To maintain secrecy, the case details and the docket number were sealed and revised within the official Congressional registry to reflect a commemorative coin. It was again revised even more recently. This is why there are no public Congressional Records about NESARA and why a search for this law will not yield the correct details until after the reformations are made public.
29. Members of Congress will not reveal NESARA because they have been ordered by the U.S. Supreme Court Justices to deny its existence, or face charges of treason punishable by death. Some members of Congress have actually been charged with obstruction. When Minnesota Senator Paul Wellstone was about to break the gag order, his small passenger plane crashed, killing his wife, daughter and himself.If fear isn't enough to keep Washington in line, money is. Routine bribes are offered to governmental/military officials by the power elite/secret government.
30. Not surprisingly, much disinformation about NESARA can be found on the Internet. Wikipedia’s article is total disinformation. Dr. Harvey Francis Barnard’s NESARA bill was rejected by Congress in the 1990s. Dr. Barnard was a systems philosopher and had tried for years to interest Congress in his monetary reform suggestions. A testimony and articles by Dr. Barnard’s close friend, Darrell Anderson, are shown below. http://www.simpleliberty.org/bookshelf/draining_the_swamp.htm
31. The next step was to announce NESARA to the world, but it’s was not an easy task. Many powerful groups have tried to prevent the implementation of NESARA. The NESARA law requires that at least once a year, an effort be made to announce the law to the public. Three current US Supreme Court judges control the committee in charge of NESARA’s announcement. These Judges have used their overall authority to secretly sabotage NESARA’s announcement.
32. In 2001 after much negotiation, the Supreme Court justices ordered the 107th Congress to pass resolutions approving NESARA. This took place on September 9, 2001, eighteen months after NESARA became law.
33. The next day on September 10, 2001, George Bush Sr. moved into the White house to steer his son on how to block the announcement. The next day, on September 11, 2001, at 10 AM Eastern Daylight Time, Alan Greenspan was scheduled to announce the new US Treasury Bank system, debt forgiveness for all U.S. citizens, and abolishment of the IRS as the first part of the public announcements of NESARA.
34. It is alleged that just before the announcement at 9 am, Bush Sr. ordered the demolition of the World Trade Center’s Twin Towers to stop the international banking computers on Floors 1 and 2 in the North Tower from initiating the new U.S. Treasury Bank system. Explosives in the World Trade Center were said to be planted by operatives and detonated remotely in Building 7, which was demolished later that day it is alleged, in order to cover-up their crime. It also was said that remote pilot technology was used in a flyover event to deliver a payload of explosives into the Pentagon at the exact location of the White Knights in their new Naval Command Center who were coordinating activities supporting NESARA’s implementation nationwide. With the announcement of NESARA stopped dead in its tracks, George Bush Sr. was said to have decapitated any hopes of returning the government back to the people. See this documentary to be released after the GCR:http://eagleonetowanta.com/
35. By 2008 another proponent of the New World Order, the Obama Administration, was in charge. Obama refused to work under a budget while ballooning the national debt with a stimulus package that didn't stimulate the economy, but more than tripled the national debt.
36. The US fast began loosing their influence as the main world reserve currency due to it's uncontrollable monetary policies, ever-growing debt and use of fiat currency.
37. Also in 2008 the Royal Dragon families became very concerned when the US could not even pay the interest on it's debt. They called in their loan on Lehman Brothers, thus causing the 2008 Mortgage Crisis.
38. By now nations of the global monetary system had alarming concern about the US national debt and US currency which had no backing, yet was being used as the main world reserve currency.
39. The Royal Dragon Families then stepped in to form BRICS, backing the currencies of nations who joined the BRICS system with their own natural resources and gold reserves of the Dragon Families.
40. Brazil, Russia, Indonesia, China and South African formed BRICS to correct the situation, and backed the world's individual currencies with gold and natural resources to conform to Basil III of the IMF. They revalued all of the world currencies and worked toward a Global Currency Reset, using revaluation of the Iraqi Dinar as a kingpin for the other world currencies to revalue.
41. By 2015 all the nations of the world except for the US and Japan had joined BRICS. Japan joined in the Fall of 2015, leaving the US as the loan holdout.
42. Around the same time that BRICS was formed (7-8 years ago) the United States Army created an interim government called the New Republic and stationed it in West Virginia. The Royal Dragon Families had demanded formation of this New Republic as a necessary step before they would back US currency with their gold in the BRICS system.
43. A New Republic interim government was formed by concerned Congress people because the Obama Administration refused to join BRICS, thus creating a dangerous situation of fiat currency where the US economy could easily collapse.
44. The New Republic went into operation near the start of 2015.
45. The New Republic had to construct a national currency but they didn’t have the gold by which they could comply with the IMF's Basil III. In April 2015 the Chinese Elders leased 100 billion in gold to the New Republic.
46. US Treasury Reserve Notes [TRNs] were created by the New Republic for use at the government level, but they’re not used on the street. Since 2015 they have been trading the new TRNs internationally, in Europe and in the Japanese Market.
47. For a monetary system that could be used by the general US public, the New Republic created what’s known as United States Notes [USNs].
48. The only difference between the new US Notes currency and the Federal Reserve Notes is that the new currency will not be charged interest.
49. The new US Note currency is like what President Kennedy had created way back in 1963 when he tried to shut down the Federal Reserve right before he was killed.
50. Kennedy's cost of trying to take down the Federal Reserve using new US Notes is explained in this documentary to be released July 4 2016 as an introduction of the New Republic: http://eagleonetowanta.com/
51. In 2012 as the Settler on a Econo Trust Lein against the Federal Reserve Bank and to prevent them from rechartering, the Federal Reserve was melded into the new United States Treasury now located in Reno Nevada.
52. Patriots like Winston Strout helped the Federal Reserve to be absorbed into the US Treasury. A recent interview with Winston Strout discussing the process is here: http://www.talkshoe.com/talkshoe/web/talkCast.jsp?masterId=46256&cmd=tc
53. There was a 2011 Treaty White Paper that informed finance ministers of the economical conditions of the world. As a result, Ireland challenged the banks. They said, “If you can prove that you loaned us any money, we will gladly pay you. But If you can’t, basically ‘go pound sand’!” And they held to it. They had that same thing going on with Greece. It was believed that if the right one had gotten elected in Greece they would have done this same thing as did Ireland.
54. In 2015 the New Republic (charged with protecting the Royal Dragon Family gold that backed the new US currency) located the new US Treasury in Nevada on an Indian Reservation because Indian Reservations have free trade zones.
55. In 2015 Marine Corp. General Dunford was selected to be the interim President of the New Republic because he had recently been appointed by Congress to be the Joint Chief of Staff at the Pentagon.
56. Also in 2015 when Paul Ryan replaced John Boehner as Senate Majority Leader and Speaker of the House, he did so knowing he would eventually replace Dunford as the interim President of the New Republic.
57. On Jan.1 2016 Paul Ryan replaced Dunford as interim President of the New Republic. He will remain in place as the interim US President until the Nov. 2016 elections.
58. Dunford stepped down to fill the slot as Vice President of the New Republic.
59. On March 31 2016 the US finally joined BRICS, opening the door for the New Republic to take over and dictate US monetary policy under rules as outlined in the original US Constitution.
60. The New Republic of United States government and Treasury were restored at 6:30 pm Wednesday, March 30, 2016 when the Dragon Family released funding for the New Republic (the real reason for the Chinese visit to the White House that day).
61. The Dragon Family 100 billion in gold that was leased to the new US Treasury and temporarily stored in Texas, was shipped to the new US Treasury in Reno.
62. As of March 29 2016 the USA Inc government cabal membership was being legally arrested. This was expected to continue until all known "dark agents" were rounded up.
63. Also as of March 30 2016, redemption 800#s were released to the New Republic leadership for final implementation at some unknown time. These 800#s could be released anytime per internal discretion.
64. The GCR is about to take place, along with the release of 800 numbers. The New Republic will be announced some time after the GCR has taken place, suspected to be around July 4 2016.
65. Under the New Republic the Federal Reserve is closed.
66. Under the New Republic the IRS and corrupt judges will be dealth with.
67. Under the New Republic the Bar Association and all US attorneys will have to renounce their Bar Oath to the Temple Bar of London and become lawyers, but they can’t be considered attorneys anymore.
68. The individual governments of the 50 states will remain in place.
69. The North American Union is now done. Washington D.C. has been disincorporated.
70. Pope Francis has fired five of the Cardinals out of the Vatican Bank which controlled the world currency before instigation of BRICS.
71. The New Republic Military is in the process of reclaiming all military installations.
72. The purpose of the New US Republic is to function as a restored Constitutional Government as established pre-Civil War.
73. Announcement of the New Republic is pending, but some say it will be done on July 4 2016, along with forgiveness of bank and individual debt, plus release of this documentary: http://eagleonetowanta.com/
See this article and over 300 others on Anna's website here:www.annavonreitz.com
History of NESARA https://pathwaytoascension.wordpress.com/2011/08/17/history-of-nesara/
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