Money Mechanics – The Federal Reserve SystemIn Blog
“Give me control over a nation’s currency and I care not who makes its laws.” Baron M. A. Rothschild
We spend much of our energy trying to accumulate this elusive necessity, yet most of us have no understanding of what it is or how our money system works. We think those dirty green slips of paper with pictures of dead presidents on them, represent our country’s wealth and are therefore our money. Nothing could be further from the truth. First, what we are talking about are Federal Reserve Notes. These notes are not lawful money!
What is Money?
The congress shall have power to coin money, regulate the value thereof, and of foreign coin, and fix the standard of weights and measures. United States Constitution, article 1s8.
No State shall coin money; emit Bills of Credit; Make anything but gold and silver coin a Tender in payment of Debts. United States Constitution, Article 1s10.
In the United States Code at Title 12 s 152: Lawful money of the United States shall be constructed to mean gold and silver coin
Blacks Law Dictionary cites the definition of money as: Coins and paper currency used as a circulating medium of exchange, and does not embrace notes, bonds. or evidence of debt.
From these definitions it becomes crystal clear that what we call money is nothing of the kind. What we carry in our pockets, the Federal Reserve System’s Notes — disqualify as money, because they are notes. A note is an IOU – i.e., you have a note on your house, the mortgage – an evidence of debt. It is not money! Literally translated Federal Reserve Notes are actually tiny pieces of the overall mortgage we, as a country, owe the bankers.
Who owns the Federal Reserve Banking system you might ask. The list of major stockholders reads like a Who’s Who of the International Banking scene. Some of those stockholders are identified as: The bank of the architect of the Money Scam and father of the Order of Illuminati, The Rothschild Banks of Berlin and London. And, of course, Baron Rothschild’s protege family in America, the Rockefellers. Others include Kuhn and Loeb and Israel Mossesschieff of Italy; the Warburg’s of Hamburg, Germany; the Lazard Brothers of Paris, France; and Goldman and Sachs of New York.
To fully understand how this state of affairs came about we must first look at the history of money in America.
In 1787 John Adams wrote to Thomas Jefferson:
All the complexities confusion and distress in America arise, not from defects of the constitution, not for want of honor or virtue so much as from downright ignorance of the nature of coin, credit and circulation.
This sorry situation is truer today than it was then. Our controlled school system teaches us nothing about the workings of our equally controlled monetary system. Of course that’s understandable the ones controlling both are the same dogs in a different house.
As researcher/Writer Stephen Jacobson explains in his lecture on our monetary system available on audio tape (PO Box 15734, Winston-Salem NC, 27113):
Confusion surrounds the very meaning of the words money, dollar, wealth, inflation, credit. Add to this wide spread ignorance and confusion concerning tax laws and you have a system designed to control and enslave the population. The money system operates in a way that would astound most Americans if they only knew how it worked. A dishonest money system is at the very heart of America’s economic and social problems. The degree to which all other areas of society are corrupted. Money is the builder or destroyer of society. An honest money system brings prosperity to all citizens, a dishonest one enriches a few at the expense of everyone.
Our history book never even hint at the real reason behind America’s War for Independence from the British Crown. Our historians tell us the major cause of our Revolution was the high taxes charged by the English, yet Benjamin Franklin, who was a major participant in the revolt wrote, “The Colonies would have gladly born a little more tax on tea and other matters had it not been that England took away from the Colonies their money.”
As explained by Ben Franklin above, the major reason for our founding fathers choice of Independence from the British Empire was over the issue of money. To meet the demands of commerce the Colonies officials issued Colonial Script, as a temporary, emergency measure. This script had no interest attached and was redeemable in gold or silver.
As Jacobson reports:
The rapid growth and prosperity of the colonies attracted the attention of the Bank of England, a private corporation chartered by the British Crown in 1694 and granting an exclusive monopoly to create money out of nothing and loan it into circulation at interest. Having gained control of manipulating the quantity of money, the Bank of England sought to exploit the colonies by seizing control over the colonies until the campaign by the Bank of England to nullify loans granting the colonies the right to create their own money, making it compulsory that the colonies borrowed their money, at interest, from England. This was the true cause for the War of Independence.
Our founding fathers knew that a central bank, privately owned by the bankers, would eventually place all the immense wealth of America into the hands of a few so they insured this would not happen. They were so much against the central bank/interest way of doing business they, as quoted earlier in this report, put safeguards against it in the very first Article of the Constitution of the United States. To insure that our money was of real value they declared, and I repeat, “No state shall coin money; emit Bills of Credit; make anything but Gold and Silver a Tender in payment of debts. United States Constitution, Article 1s10.”
As we can see, our money was intended to be coined of Gold and Silver and regulated by Congress and even they were forbidden to issue paper money. This caused a problem for the world bankers centered in England and Germany and their One World Order plan, With America having an honest gold and silver backed currency, no dishonest paper-backed monetary system could exist in the world for long. Just as the Keepers of the Secrets needed to control education, they just as importantly needed control of our money. The revolution did not end the battle over the control of our money. This battle ended in 1913 with the passing of the Federal Reserve Act.
The Crime of the Century (1913)
If we turn our monetary system over to the bankers our children will wake up as slaves in the country we fought to free – Thomas Jefferson
The very thing that Thomas Jefferson warned us about happened in 1913. The crime of the century, the Federal Reserve Scam.
In the middle of the night, on Christmas Eve in 1913, while most of the honest members of Congress had left Washington DC for the Christmas holidays, a handful of dishonest Congressmen passed the unconstitutional Federal Reserve Act of 1913 which turned our money system over to a handful of international bankers. By naming this private bank the Federal Reserve Bank most citizens believe this is to be a government agency. This is not true. For proof of this you only need to look in any large city’s phone book. You’ll not find the Fed listed in the blue (government) pages. You’ll find it where it belongs listed with the other private banks in the yellow (private business) pages in the phone book.
As with all other privately owned banks the Fed is in business for but one purpose. To make money for its stockholders. Unfortunately they do this at Americans expense. In fact, the lions share of the 5 trillion-dollar national debt comes from the interest created by the FED issuing worthless currency, yet this is not even taught in our schools or addressed by our politicians.
As explained in an Editorial in the Washington DC based government watchdog publication The Spotlight for November 27, 1995: The reality is that, under the rules of our fraudulent money system, without a continuous deficit, the economy would collapse for lack of money
How does this seldom exposed system work? Simplified it goes like this. Prior to 1913, if Congress needed money to pay for the country’s expenses they went to the Treasury Department and said they needed, say, a million dollars (using easy, round figures as an example) to pay America’s debt. The Treasury Department made sure we had the gold and silver reserves to cover the amount needed then printed up gold and silver backed currency and gave it to Congress, who used it to pay our bills. The value of gold and silver was adjusted to meet those expenditures. Cut and dried.
Enter the Federal Reserve Bank. Since 1913 Congress goes to the FED and says, We need a million dollars to pay our expenses. The FED, now the middle man, goes to the Treasury Department and tells them to print up a million dollars worth of FED Notes. They then buy them from the Treasury Department at cost, about 3 cents a bill no matter the denomination. Then the FED used these paper bills to buy bonds on which the taxpayers pay interest. In other words, not only do we owe this private bank the million dollars they created out of nothing, but we also owe them the interest rate that they decide upon.
As The Spotlight editorial explains further:
And the interest on these fraudulent bonds has to be created by more borrowing. Thus, the money supply has to be constantly expanded, because interest has to be paid ahead of any other government expense. If the interest on the bonds is not paid, the money system will collapse immediately. This is why every government expenditure except interest on the bonds (the national debt) is on the table to be cut or eliminated.
This is also why it is impossible to reduce the debt because when funds are paid to reduce the debt buy back the outstanding bonds and retire them the money literally disappears from circulation. It goes to where it came from, nowhere. And when there is a shortage of money, that’s recession, even depression. Thus, you can see if the national debt was paid there would be no money at all.
So the next time you hear a politician tell you he has a plan to balance the budget, if he doesn’t mention a plan to dump the FED and return the control and coining of money back to Congress, he’s either lying to you, or too ignorant to know what he’s taking about or too afraid.
Those in high places who have tried to awake the American people to this scam have been ridiculed as conspiracy nuts or, worst murdered. One person branded as a conspiracy nut was Louis T. McFadden, (R- Penn.) Member of the House of Representatives in the 30s, he was the Chairman of the House Banking & Commerce Committee in the 20s. He tried to expose the Federal Reserve for what it was. On June 1, 1932, in a speech before Congress, and stored as public record in the Congressional Record, McFadden stated: Mr. Chairman, we have in this country one of the most corrupt institutions the world has ever known. I refer to the Federal Reserve Board and the Federal reserve banks. The Federal Reserve Board, a Government board, has cheated the Government of the United States out of enough money to pay the national debt. The depredations and the iniquities of the Federal Reserve Board and the Federal reserve banks acting together have cost this country enough money to pay the national debt several times over. This evil institution has impoverished and ruined the people of the United States; has bankrupted itself, and has practically bankrupted our Government. It has done this through defects of the law under which it operates, through the maladministration of that law by the Federal Reserve Board and through the corrupt practices of the moneyed vultures who control it.
McFadden then placed the blame of the causes of the Great Depression square on the shoulders of the privately owned bank: From the Atlantic to the Pacific our country has been ravaged and laid waste by the evil practices of the Federal Reserve Board and the Federal reserve banks and the interests which control them … This is an era of economic misery and for the conditions that caused that misery, the Federal Reserve Board and the Federal Reserve banks are fully liable.
Even though most establishment historians will agree that, although the FED was created to prevent such an occurrence as the Great Depression, they set quietly by and let it happen. However few will admit that the FED is bad. For a very good reason. They could end up dead. After three attempts on his life, McFadden died under mysteriously circumstances only four years after exposing the workings of the Fed before Congress.
Two Presidents had the nerve to address this issue of the people of the United States paying interest to a private bank for our own money. After the Civil War, when America was facing bankruptcy the international bankers offered to lend President Lincoln money for rebuilding. He refused and issued $440 million in debt-free greenbacks. In 1963 President Kennedy, under Executive Order, ordered Congress to start to pay off the national debt by issuing debt free United States Notes which bypassed the Federal Reserve. History has shown us what happened to these two for bucking the system.
One of the international bankers, Sir amsiah Stamp of the Bank of England sums it up nicely: Banking was conceived in iniquity and born in sin. Bankers own the earth. Take it away from them but leave them the power to create money and with the flick of a pen they will create money to buy it back. Take this great power away from them and all great fortunes will disappear, and they ought to disappear, for this would be a better and happier world to live in. But, if you want to continue to be slaves of the bankers and pay the cost of your own slavery, then let bankers continue to create money and control credit.