The Federal Reserve
A Banking Cartel
"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."
-- Sir Josiah Stamp, director of the Bank of England and the second richest man in Britain in the 1920s, speaking at the University of Texas in 1927
Professor Henry C. K. Liu is an economist who graduated from Harvard and chaired a graduate department at UCLA before becoming an investment adviser for developing countries.
He calls the current monetary scheme a "cruel hoax."
When we wake up to that fact, he says, our entire economic world view will need to be reordered, "just as physics was subject to reordering when man's world view changed with the realization that the earth is not stationary nor is it the center of the universe."
"The hoax is that there is virtually no "real" money in the system, only debts.
Except for coins, which are issued by the government and make up only about one one-thousandth of the money supply, the entire U.S. money supply now consists of debt to private banks, for money they created with accounting entries on their books.
It is all done by sleight of hand; and like a magician's trick, we have to see it many times before we realize what is going on.
But when we do, it changes everything. All of history has to be rewritten."
-- Ellen Hodgson Brown, "The Web of Debt" (Introduction)
"Banks create money.
That is what they are for. . . .
The manufacturing process to make money consists of making an entry in a book.
That is all. . . . Each and every time a Bank makes a loan . . . new Bank credit is created -- brand new money."
-- Graham Towers, Governor of the Bank of Canada from 1935 to 1955
The income tax you pay goes in the bankers pockets - to pay the interest on the national debt ... period.
This debt is created when Congress allows the banks to print "our" money ... or, better said, to make an entry in a computer screen.
Today, there is no value behind this entry.
In any other business, it would be called "juggling the books", and someone would go to jail when it was discovered.
If the government was in charge of the money supply, there would be no need for the ever increasing income tax.
-- Buddy Logan
"Monetary policy is in the hands of private creditors who have the ability to freeze State budgets, paralyse the payments process, thwart the regular disbursement of wages to millions of workers (as in the former Soviet Union) and precipitate the collapse of production and social programmes."
-- Michel Chossudovsky, Professor of Economics at the University of Ottawa
"We are left . . . with the thought that the Federal Reserve Board does not know what it is doing.
This is the "Wizard of Oz" theory, in which we pull away the curtains only to find an old man with a wrinkled face, playing with lights and loudspeakers.
-- James Galbraith, son of John Kenneth Galbraith, professor at the Department of Government, University of Texas, Article in "The New American Prospect"
"Picture a party of the nation's greatest bankers standing out of New York on a private railroad car under cover of darkness, stealthily hieing hundreds of miles south, embarking on a mysterious launch, sneaking on an island deserted by all but a few servants, living there a full week under such rigid secrecy that the names of not one of them was once mentioned lest the servants learn the identity and disclose to the world this strangest, most secret expedition in the history of American finance.
"I am not romancing. I am giving to the world, for the first time, the real story of how the famous Aldrich currency report, the foundation of our new currency system, was written."
-- B.C. Forbes, founder of Forbes Magazine, (printed in "Leslies Weekly", 1916), describing the meeting on Jekyll Island of the banking cartel that formed the Federal Reserve System.
"The basic plan for the Federal Reserve System was drafted at a secret meeting held in November of 1910 at the private resort of J.P. Morgan on Jekyll Island off the coast of Georgia.
Those who attended represented the great financial institutions of Wall Street and, indirectly, Europe as well.
The reason for secrecy was simple.
Had it been known that rival factions of the banking community had joined together, the public would have been alerted to the possibility that the bankers were plotting an agreement in restraint of trade - which, of course, was exactly what they were doing.
What emerged was a cartel agreement with five objectives:
- Stop the growing competition from the nation's newer banks;
- Obtain a franchise to create money out of nothing for the purpose of lending;
- Get control of the reserves of all banks so that the more reckless ones would not be exposed to currency drains and bank runs;
- Get the taxpayer to pick up the cartel's inevitable losses;
- Convince Congress that the purpose was to protect the public.
It was realized that the bankers would have to become partners with the politicians and that the structure of the cartel would have to be a central bank.
The record shows that the Fed has failed to achieve its stated objectives [stabilizing the economy].
That is because those were never its true goals.
As a banking cartel, and in terms of the five objectives stated above, it has been an unqualified success."
-- G. Edward Griffin, "The creature from Jekyll Island"
As the Honorable Louis McFadden, Chairman of the House Banking and Currency Committee, warned in 1933, the Fed does not care that it is killing the dollar because its role is to represent the interests of its international owners and its Wall Street cronies, not the American people.
“Some people think that the Federal Reserve Banks are United States Government institutions.
They are private monopolies which prey upon the people of these United States for the benefit of themselves and their foreign customers; foreign and domestic speculators and swindlers; and rich and predatory money lenders,” said McFadden.
Our economic system can be compared to a gasolene engine.
If you had a carburetor that did not need to inject fuel into the engine, it would run quite well on fumes.
That is what the internal combustion engine was designed to do.
However, without a supply of gasolene, the fumes will eventually dissipate and the engine will quite running.
We have been running on debt.
We ran out of money a long time ago.
-- Buddy Logan