-- Posted Friday, 30 December 2011 | | Disqus
By Richard (Rick) Mills, Ahead of the Herd
As a general rule, the most successful man in life is the man who has the best information
Mayer Amschel Bauer Rothschild, founder of the International Banking House of Rothschild said:
“Let me issue and control a nation’s money and I care not who writes the laws.”
The Rothschild brothers, already laying the foundation for the Federal Reserve Act, wrote the following to New York associates in 1863:
“The few who understand the system will either be so interested in its profits or be so dependent upon its favours that there will be no opposition from that class, while on the other hand, the great body of people, mentally incapable of comprehending the tremendous advantage that capital derives from the system, will bear its burdens without complaint, and perhaps without even suspecting that the system is inimical to their interests.”
In 1906, Senator Nelson Aldrich – known as the "General Manager of the Nation" because of his impact on national politics and position on the Senate Finance Committee - sold his interest in the Rhode Island street railway system to the New York, New Haven and Hartford Railroad, whose president was J. P. Morgan's loyal ally, Charles Sanger Mellen.
By 1906 the annual rate of US capital formation was running at $5 billion. This rapid expansion went hand in hand with the creation of enormous industrial and financial monopolies. By 1904, more than 1,800 companies had been consolidated into 93 corporations, a financial consolidation led by J Pierpont Morgan.
A few historians believe that J.P. Morgan published rumors that the Knickerbocker Trust Company (in the ten years up to 1907, trust companies had increased three and a half times, to $1.4bn, compared with state banks, which had doubled to $1.8bn. The Knickerbocker Trust was the third largest Trust in New York with $65mn in deposits and 18,000 depositors - Robert F Bruner and Sean D Carr, The panic of 1907) was insolvent, the widely spread rumors were followed by the *National Bank of Commerce announcing it would stop accepting checks for the Trust Company which triggered a run of depositors demanding their funds back – thus precipitating the Panic of 1907.
* The National Bank of Commerce was the principal correspondent bank for bank clearings in the area southwest of Chicago and St. Louis. Because of this role, Commerce was at one point among the 20 largest banks in the United States, as measured by assets. Wikipedia
The Knickerbocker’s collapse caused banks and trust companies to hoard their funds. No loans were made, stocks slumped to their lowest level since December 1900 (the stock market fell 50%) and the crisis spread to the Trust Company of America.
In the Wednesday, October 23, edition of the New York Times was a headline describing the Trust Company of America, the second largest trust company in New York City, as the current "sore point" in the panic. JP Morgan summoned the Secretary of the US Treasury, George B Cortelyou, to New York. On being assured that the Trust Company of America was solvent with Federal backing, JP Morgan gathered together the presidents of all the key banks and organized an immediate $3 million loan to Trust Company.
J Pierpont Morgan had made his reputation and that of his bank. At this time Morgan started to slowly disengage from the day to day activities of his firm preferring to concentrate on his passion for touring Europe, collecting art and literature and sitting on the boards of charitable organizations.
"All this trouble could be averted if we appointed a committee of six or seven public-spirited men like J.P. Morgan to handle the affairs of our country." Woodrow Wilson talking about The Troubles of 1907
The Panic of 1907 led to the passage of the Aldrich–Vreeland Act in 1908, this act established the National Monetary Commission - sponsored and headed by Senator Aldrich.
Aldrich also co-authored the Payne-Aldrich Tariff Act of 1909 which removed restrictive import duties on fine art. This enabled Americans to bring in very expensive European artworks that became the foundation of many leading museums.
On the night of November 22, 1910 a delegation of the nation’s leading financiers, led by Senator Nelson Aldrich, left New Jersey for a very secret ten day meeting on Jekyll Island, Georgia.
Aldrich had previously led the members of the National Monetary Commission on a two year banking tour of Europe. He had yet to write a report regarding the trip, nor had he yet offered any plans for banking reforms.
"Despite my views about the value to society of greater publicity for the affairs of corporations, there was an occasion near the close of 1910, when I was as secretive, indeed, as furtive, as any conspirator. . . . Since it would have been fatal to Senator Aldrich’s plan to have it known that he was calling on anybody from Wall Street to help him in preparing his bill, precautions were taken that would have delighted the heart of James Stillman.” Frank Vanderlip, the Saturday Evening Post, February 9, 1935
Accompanying Senator Aldrich to Jekyll Island were:
• Frank Vanderlip, president of the National City Bank of New York, associated with the Rockefellers
• Henry P. Davison, senior partner of J.P. Morgan Company, regarded as Morgan’s personal emissary
• Charles D. Norton, president of the Morgan dominated First National Bank of New York
• Col. Edward House, who would later become President Woodrow Wilson's closest adviser and founder of the Council on Foreign Relations
• Benjamin Strong, a lieutenant of J.P. Morgan
• Paul Warburg, a recent immigrant from Germany who had joined the banking house of Kuhn, Loeb and Company, New York directed the proceedings and wrote the primary features of what would be called the Aldrich Plan. Warburg would later write that "The matter of a uniform discount rate (interest rate) was discussed and settled at Jekyll Island"
After the Jekyll Island visit the National Monetary Commission “wrote” the Aldrich Plan which formed the basis for the Federal Reserve system.
"In 1912 the National Monetary Association, under the chairmanship of the late Senator Nelson W. Aldrich, made a report and presented a vicious bill called the National Reserve Association bill. This bill is usually spoken of as the Aldrich bill. Senator Aldrich did not write the Aldrich bill. He was the tool, if not the accomplice, of the European bankers who for nearly twenty years had been scheming to set up a central bank in this Country and who in 1912 has spent and were continuing to spend vast sums of money to accomplish their purpose." Congressman Louis T. McFadden on the Federal Reserve Corporation: Remarks in Congress, 1934
After several failed attempts to push the Federal Reserve Act through Congress, a group of bankers funded and staffed Woodrow Wilson's campaign for President. He had committed to sign a slightly different version of the Federal Reserve Act than Aldrich’s Plan.
In 1913, Senator Aldrich pushed the Federal Reserve Act through Congress just before Christmas when much of Congress was on vacation. When elected president Woodrow Wilson passed the FED.
"Our secret expedition to Jekyll Island was the occasion of the actual conception of what eventually became the Federal Reserve System. The essential points of the Aldrich Plan were all contained in the Federal Reserve Act as it was passed." Frank Vanderlip, autobiography, From Farmboy to Financier
"I have unwittingly ruined my country.” Woodrow Wilson later said referring to the FED
“We have, in this country, one of the most corrupt institutions the world has ever known. I refer to the Federal Reserve Board. This evil institution has impoverished the people of the United States and has practically bankrupted our government. It has done this through the corrupt practices of the moneyed vultures who control it.” Congressman Louis T. McFadden in 1932
The Federal Reserve Bank (FED) is a privately owned company that controls, and profits immensely by printing money through the US Treasury and regulating its value.
“Some [most] people think the Federal Reserve Banks are U.S. government institutions. They are not … they are private credit monopolies which prey upon the people of the U.S. for the benefit of themselves and their foreign and domestic swindlers, and rich and predatory money lenders. The sack of the United States by the Fed is the greatest crime in history. Every effort has been made by the Fed to conceal its powers, but the truth is the Fed has usurped the government. It controls everything here and it controls all our foreign relations. It makes and breaks governments at will.” Congressional Record 12595-12603 — Louis T. McFadden, Chairman of the Committee on Banking and Currency (12 years) June 10, 1932
“… we conclude that the [Federal] Reserve Banks are not federal … but are independent, privately owned and locally controlled corporations … without day-to-day direction from the federal government.” 9th Circuit Court in Lewis vs. United States, 680 F. 2d 1239 June 24, 1982
The FED began with approximately 300 people, or banks, that became owners (stockholders purchased stock at $100 per share) of the Federal Reserve Banking System. The Fed is privately owned - 100% of its shareholders are private banks, the stock is not publicly traded and none of its stock is owned by the US government.
The FED banking system collects billions of dollars in interest annually and distributes the profits to its shareholders.
The US Congress gave the FED the right to print money at no interest to the FED. The FED creates money from nothing, loans it out through banks and charges interest. The FED also buys government debt with money from nothing, and charges U.S. taxpayers interest.
The interest on bonds acquired with its newly-issued Federal Reserve Notes pays the Fed’s operating expenses plus a guaranteed 6% return to its banker shareholders.
Reuters reported on October 3 2008:
"The U.S. Federal Reserve gained a key tactical tool from the $700 billion financial rescue package signed into law on Friday that will help it channel funds into parched credit markets. Tucked into the 451-page bill is a provision that lets the Fed pay interest on the reserves banks are required to hold at the central bank."
So in addition to the FED’s banker shareholders receiving a guaranteed 6%, banks also now get interest from the taxpayers on their 10 percent "reserves."
The reserve requirement set by the Federal Reserve is 10 percent – ie the ABC Fractional Bank has a billion dollars stashed at the FED, that’s its reserve and its paid interest on it. That billion dollars can be fanned into ten times that sum in loans - $1,000,000,000 in reserves becomes $10,000,000,000 in loans.
The absolute amount of bank loans and leases outstanding was $6.80 trillion September 14, 2011. Ten percent of that is $680 billion. US taxpayers will be paying interest to the banks on at least $680 billion worth of reserves – so banks can accumulate interest from borrowers on ten times that sum in loans.
The FED is the only for profit corporation in America that is exempt from both federal and state taxes.
The FED's books are not open to the public, nor Congress apparently:
A first ever GAO (Government Accountability Office) semi-audit of the US Federal Reserve was recently carried out and a report was issued in July of 2011. What the audit revealed was incredible: between December 2007 and June 2010, the Federal Reserve had secretly bailed out many of the world’s banks, corporations, and governments by giving them…
US$16,000,000,000,000.00 – that’s 16 TRILLION dollars.
The GDP of the United States is $14.12 trillion, the entire national debt of the United States government spanning its 200 plus year history is $14.5 trillion.
The GAO report also determined that the Fed lacks a comprehensive system to deal with conflicts of interest:
• The CEO of JP Morgan Chase served on the New York Fed's board of directors at the same time that his bank received more than $390 billion in financial assistance from the Fed
• JP Morgan Chase served as one of the clearing banks for the Fed's emergency lending programs
• On Sept. 19, 2008, William Dudley - now the New York Fed president - was granted a conflict of interest waiver to let him keep investments in AIG and General Electric at the same time AIG and GE were given bailout funds.
• The Fed outsourced the operations of their emergency lending programs to private contractors ie JP Morgan Chase, Morgan Stanley, and Wells Fargo. These firms received trillions of dollars in Fed loans at near zero interest rates
• Two-thirds of the contracts that the Fed awarded to manage its emergency lending programs were no-bid contracts
The IRS was restarted within months of the FED's inception. The roots of the IRS go back to the Civil War when President Lincoln and Congress, in 1862, created the position of commissioner of Internal Revenue (The position of Commissioner exists today as the head of the Internal Revenue Service) and enacted an income tax (the initial rate was 3% on income over $800, which exempted most wage-earners) to help pay war expenses. In 1872, seven years after the war, lawmakers allowed the temporary Civil War income tax to expire.
Congress enacted a flat rate Federal income tax in 1894, but the Supreme Court ruled it unconstitutional the following year because it was a direct tax not apportioned according to the population of each state.
Senator Aldrich was instrumental in the re-structuring of the American financial system through a federal income tax amendment, the 16th - he had originally opposed an income tax as communistic a decade before. The 16th Amendment gave Congress the authority to tax the income of individuals without regard to the population of each State:
“The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration."
In 1906 David Graham Phillips wrote a series of articles published in Cosmopolitan claiming that politicians were receiving huge payments from large corporation to argue their case in the Senate. Phillips claimed that the main figures in this scandal was Aldrich and Arthur P. Gorman of Maryland.
David Graham Phillips was murdered on 23rd January, 1911. Two months later Aldrich resigned from Congress.
Sir Josiah Stamp, president of the Rothschild Bank of England and the second richest man in Britain in the 1920s, said the following in 1927 at the University of Texas:
“The modern banking system manufactures money out of nothing. The process is perhaps the most astounding piece of sleight of hand that was ever invented. Banking was conceived in inequity and born in sin. Bankers own the Earth. Take it away from them but leave them the power to create money, and with a flick of a pen, they will create enough money to buy it back again. Take this great power away from them and all great fortunes like mine will disappear, for then this would be a better and happier world to live in. But if you want to continue to be the slaves of bankers and pay the cost of your own slavery, then let bankers continue to create money and control credit.”
The Federal Reserve was conceived and given birth by an unholy alliance of American and British bankers. The FED buys U.S. debt with money printed from nothing, then charges U.S. taxpayers interest. The US government pushed through the federal income tax amendment, restarted an income tax on Americans to pay the interest to the FED and reorganized the IRS to collect the monies – the interest - “owed” to the FED from its citizens.
Since the Fed’s creation in 1913 the dollar has lost more than 96% of its value.
Undoubtedly the greatest achievement of the FED has been to transform America from being the world’s foremost creditor nation to the world’s largest debtor nation.
Aldrich’s motto, when questioned about his activities and the reasoning behind them, was to "Admit nothing. Explain nothing."
"Let me issue and control a nation’s money and I care not who writes the laws.” should be on every thinking person’s radar screen. Is it on yours?
If not, maybe it should be.
Richard (Rick) Mills
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-- Posted Friday, 30 December 2011 | Digg This Article | Source: GoldSeek.com