By: James Daniels
Next time you spend a dollar, take a few seconds to read it. At the top, in the middle, you will notice that it says “Federal Reserve Note.” What does this mean? The following is a brief history and explanation of the Federal Reserve that you probably didn’t learn in school.
The Federal Reserve was conceived in November of 1910. It was planned at the location of the Jekyll Island Club, which was a group of ultra-wealthy individuals who purchased Jekyll Island, Georgia for their hunting and recreational club. The group consisted of family members of the Morgans, Rockefellers, and Vanderbilts, among others. Membership was by inheritance only. The members of this group accounted for a whopping one sixth of all wealth on Earth. Essentially, the Federal Reserve was designed by a group of Wall Street Bankers.
The events that took place were cloaked in secrecy. The bankers rode a private, covered train car from New York to Georgia to carry out their plan. The railroad received orders to board the discreet passengers on an unfrequented platform. They took strict measures to ensure that nobody else on the island, such as servants, knew their identities. They then went on to create what we now know as the Federal Reserve, which controls US monetary policy. This was all done on a private island with no public mention of it. All participants were sworn to secrecy. It was eventually revealed by B.C. Forbes, the founder of Forbes magazine.
So, what is wrong with this? For starters, the US Constitution expressly gives Congress the power to coin money and regulate its value. The Federal Reserve is actually a private organization. That’s right, the Federal Reserve, which controls US monetary policy, is a private organization of international bankers. Take a step back and think about that. A group of international bankers controls US monetary policy. That may just be a conflict of interest.
Where has this gotten us today? Massive bailouts, endless war, and inflation that eats at the pockets of all citizens. Whenever the Federal Reserve needs money, it can simply just create new money, at the expense of anyone who holds existing money and future generations as well. It no longer requires the backing of gold. The value of each dollar that you hold gets weaker each year. At the time of meeting at Jekyll Island, the US had very little national debt. Now, it stands at over 14 trillion dollars. As far as the dollar’s value is concerned, since the implementation of the Federal Reserve, it has decreased by 95 percent, according to the American Institute for Economics and US Department of Labor Statistics.
In addition to all the recent massive bailouts financed by the Federal Reserve, banks have traditionally gotten free money from them. The Federal Reserve creates new money, loans it to banks, and the banks loan it to you at a higher rate. Essentially, this sweetheart deal gives the banks free money. Just another major conflict of interest.
So, while I have barely touched the tip of the iceberg of the behemoth that is the Federal Reserve, we can see that this is a private organization that consists of people who stand to benefit greatly in terms of power and wealth from it’s existence. This is done at the expense of the average citizen. Why would anyone want an organization that was created by ultra wealthy bankers in sworn secrecy and is now controlled by international bankers to control the monetary policy of the most powerful country on Earth? This may be the ultimate case of the fox guarding the chicken coop, and it is high time that a change is made.
Fed Up,
Smike
28 Mar 20111.) Yes, the Federal Reserve banks are privately owned, but they are controlled by the publically-appointed Board of Governors.
2.) Independent accounting firms conduct full financial audits of the Federal Reserve banks and the Board of Governors every year. The Fed is also subject to certain types of audits from the Government Accounting Office.
3.) The banking system is indeed able to create money with a mere computer keystroke. However, a bank’s ability to create money is tied directly to the amount of reserves customers have deposited there. A bank must pay a competitive interest rate on those deposits to keep them from leaving to other banks. This interest expense alone is a substantial portion of a bank’s operating costs and is de facto proof a bank cannot costlessly create money.
4.) In 1910, Senator Nelson Aldrich, Frank Vanderlip of National City (today know as Citibank), Henry Davison of Morgan Bank, and Paul Warburg of the Kuhn, Loeb Investment House did in fact secretly meet at the eerily named Jeckyll Island, to discuss and formulate banking reform, including plans for a form of central banking. The meeting was held in secret because the participants knew that any plan they generated would be rejected automatically in the House of Representatives if it were associated with Wall Street. Their plan called for a system of fifteen regional central banks, called National Reserve Associations, whose actions would be coordinated by a national board of private bankers. Regardless, the Aldrich plan was defeated in the House and was resigned to the ash heap of history. If it passed, the Federal Reserve would probably resemble the sinister entity you just described.
5.) I do find certain faults with the Federal Reserve, but it is not the root of all evil. The roots of all evil are the reptilian extraterrestrials who secretly control our thoughts using orbital mind control lasers.
Smike
28 Mar 2011I am a nerd.
Amy
29 Mar 2011I believe we would call those of the group of international bankers that controls US monetary policy, the “Predatory elite”. Preying on those who are unaware or unwilling to fight for a change. I believe most of our government falls into this category also.
Smike
29 Mar 2011It’s a sad day when a anarcho-schizophrenic lifestyle leftoid like me has to defend our financial institutions credibility.