The Fed:

The Federal Reserve claims to manage our money, but what is really occurring is this organization, through massive inflation, reduces the standard of living through this hidden and unidentified tax, which devalues the dollar every time new money is printed and cut from the presses.

Since 1913, it has caused the continual drum of the boom-bust cycle, which slows business to a crawl, and has ultimately lowered our national standard of living in the process.

This, in essence, is no different than a thief entering your house in the dead of night and stealing your personal belongings while you lay unsuspecting and asleep. Depreciating both your savings and economic security, it should be treated as the ultimate thief in the night, yet, is steadfastly regarded as a benefit to society.

Money:

Fiat money serves as a reliable value of economic standard versus a source of instability, but is this actually the case today. Until we restore a sound monetary system based on the gold standard, the government, through the Federal Reserve Mechanism, will always have the luxury of taxing us on one hand and debasing the value on the other with the inflationary mechanism.

So the million dollar question we should be asking? Do we want a monetary system that will constantly be increasing in value, or in the very least remaining stable and constant, or do we want a monetary system that is constantly decreasing in value.

It is a simple question that has a simple solution, yet many people do not realize that the American dollar, since the Fed came into existence in 1910, has decreased in value every single year. The purchasing power of the dollar today compared to 1913, the year the Fed was concocted, is worth less than four cents on the dollar! If you wish for money to lose its value, then you must like the current system. If you want money to increase in value then we MUST go to a gold standard and abolish the Fed.

If the Federal Reserve continues to maintain its course, we have little hope for restoring the economic viability that made our country the beacon of freedom. Our monetary system is not based on the Republic of Laws that formed the constitution. Our revolutionary fathers who ran like the wind from British Imperialism, would likely agree that America in its present state is essentially a socialistic system that is a hybrid between Russian Communism and German Nazism.

According to Jim Mars, who authored “Rule By Secrecy,” the basic form of government we have today is in fact, socialism. In his words, “We have social programs for everything.

We have educational programs to bring the masses around to what the controlling body wants, we have social programs to ensure a class system in society, we have social programs to protect the welfare of the poor and destitute, and we have social programs in place to enrich the expansion of big government.

Of course the social programs themselves are advertised to be of, and for the benefit of the people, but in reality are simply aiding and empowering the international corporations.” “This is pushed along by a fervent Nationalism - “What is good for GM, Coca-Cola, AT&T and Johnson & Johnson is good for the country.”

From the corporate-government standpoint at the national level, our way of freedom is right and if we (America) don’t like how you run your government, or in simpler terms, if you have national resources that we covet, of which the rest of the world needs, we will invade, occupy or conquer your form of government. So in essence, we have national-socialism, which is in fact what is termed “Fascism” by Nazi standards.

The Nazi party was known as the National Socialist German Work Force. Nazism can be further defined as a spin on Fascism, which was created by the Italian dictator Benito Mussolini. In Mussolini’s words, Fascism is a coined word for the concept of Corporate Rule. The corporations essentially run the country through the control of government operations.

In both Fascist Italy and Nazi Germany, the state took control of the corporations. In our country today, the reverse is true, but the end result is the same. The corporations have taken over the state through the lobbying of congress, which protects the monopolized cartel, primarily the international corporations who essentially profit at the expense of the American taxpayer.

Money is, and always has been, the foundation of every economic activity. In the earliest of times, people traded goods via the barter system. For example, if I produced Beaver hats, but wanted wheat to feed my family, the two corporate entities had to come to an agreement. The problem here, however, is the fact that the wheat farmer might not want my Beaver hats even though I still needed the wheat to feed my family.

In this scenario, which was a very common occurrence at the time, I had to trade Beaver hats for a more formidable product, like say, berries, tea or sugar, and then trade the berries, tea or sugar for the wheat. This created a very cumbersome and time consuming project, and this, more than anything in the early times, slowed the economy to a crawls pace by creating vast limitations on the entire marketplace.

The unintended consequence of this system was the fact that the farmer held a significant position of superiority compared to the Beaver hat maker, because the Beaver hat maker had to constantly trade down to feed his family. It wasn’t a fair trade at all.

So why didn’t all people become farmers and produce consumable food products that people had to have on a daily basis? The simple answer is the fact that you had to own real estate with fertile soils to make this happen. This is where the elite oligarchs came into the game. By charging heavy taxation upon the local farmers, in the end, the farmers were not any better off than the Beaver hat makers. This social strife has created the sparks behind many battles, conflicts and wars throughout the ages.

Although the farming business model was much more cost effective than the Beaver hat producers, they still had to overcome the surcharge of high taxation and real estate costs to get in the game in the first place. The straight trade from Beaver hats to wheat left the farmers in a much superior position from a creation of wealth standpoint since food is a perishable product, in great demand at all times of the year, while Beaver hats were a mere luxury product needed to survive the cold winter months. Advantage Farmer!

The farmer could produce his crop yearly at a much lesser cost, both labor and management wise, compared to the Beaver hat maker, but had to spend all of his extra profits paying off the elite oligarchs who controlled the real estate that the crops were harvested on. Even though the expense in time, energy, materials and labor was much greater for the Beaver hat maker, with far weaker monetary returns compared to the farmer, in the end, neither of the business entities could survive and prosper in the long run, due to heavy real estate taxation.

So as we can see, barter had its limitations as well in the early economies, thus a standard form of currency generally evolved in the primitive communities to overcome the economic hurdles that barter superimposed on primitive societies, but rarely did it affect the rich who essentially monopolized the market in the first place.

The Mayan Indians used feathers from the Ketso Bird up to the 15th Century in Central America. Tea leaves, which were compressed into bricks were traded in East Asian Societies through the 18th Century. Wompan Shells became the standard measure of currency with the Native American Indians predating the 1800s. Early American Colonists traded Beaver pelts, which had a very high value both home and abroad. So shells, nuts, stones and even feathers were used in early settlement culture as long as the public had faith that the objects would be valid exchanges for goods and service.

Metal coins first emerged in Greece and Asia minor during the Seventh Century B.C. Gold and Silver were valued for their use in jewelry and the decorative arts, but steadily increased in value since they were durable and easily divisible and in short supply. These precious metals also had a high value in weight to rate ratio making them easily transportable.

In 1536, less than 50 years after Columbus discovered America, a Spanish mint in Mexico City struck the first coins used in the New World. The silver coins eventually found their way to the British Colonies, but Great Britain monetary policies, which again are historically tied to the central banking fraud of “Fiat Money,” specifically tried to keep precious metals out of the American Colonies, so the Spanish milled dollar became the “unofficial currency.”

In 1792, after investigating the various forms of currency used throughout the world, Thomas Jefferson adopted the dollar to be utilized as the national currency due to the simple fact that this was the “unofficial currency” that much of the nation was already using. Jefferson fiercely opposed paper “Fiat” money, since the Continental Congress printed vast sums of money out of thin air to pay for the Revolutionary War. The result was massive inflation, which led to prolonged stagflation, ultimately depressing the economy for several years after the war. This phenomenon inspired the infamous phrase, “Not worth a Continental.”

The early economists, therefore, quickly and very astutely recognized that paper money was very dangerous and destructive to any established economy, let alone a new country trying to establish a viable economy which would satisfy the masses. The last thing any developing nation needed was anarchy among its citizens due to economic strains placed on its people by the very governing body who was trying to lead it, especially considering America was fleeing from British Imperialism to begin with. The last thing that was needed was more of the same concerning monetary policy.

As early as the 16th Century in Europe, Goldsmiths stored Gold coins for their customers for a fee, and issued paper receipts for the depositors, and this became the forerunner to our modern banking system with paper receipts as money. Attractive, soft and easy to work with, the public had tremendous faith in these precious metals.

These receipts for money became the standard operating procedure primarily due to the safety and ease with which a person could carry large sums of money without the fear of theft, or the cumbersomeness of the endeavor itself. Today, one can only imagine the burden of carrying around several hundred dollars in Gold coins since its intrinsic weight is much greater than our currency today.

To make trade much easier, Goldsmiths melted the precious stone and coins were produced. Standardized coins of the metals, whose weight was certified to the monetary standard is largely responsible for increasing global trade demands in the early 16 Century.

To protect the gold, the Goldsmith needed a vault. Soon, fellow townsmen who profited from the increasing winds of trade began knocking on his door to store the valuable commodity. The Goldsmiths then charged a “storage fee” for the protection of the coins. Before long, every storage shelf in the vault was completely full and the Goldsmiths quickly began to recognize the need for the expansion of their burgeoning empire.

Years went by before the Goldsmiths began to make an astute observation. Depositors rarely came in to remove their actual physical gold and they never came in all at once. This was largely due to the fact that the claim checks the Goldsmiths had written as paper receipts were being readily accepted and exchanged within the local and regional mercantile as if they were the gold itself. With paper money being far more convenient than the heavy and cumbersome Gold and Silver coins, not to mention that the checks could be written instead of counted, coin-by-coin, for each transaction, the economy improved by leaps and bounds.

The Goldsmiths also had another lateral revenue stream, known commonly today as the Bank and Loan industry, in which they lent money to the public backed by their own personal precious metal belongings, charged in interest. With paper receipts gaining favor in the marketplace, customers now started demanding the paper receipts, rather than the actual gold and silver precious metals. As industry expanded, an increasing number of people soon began asking the Goldsmiths for loans.

Sooner or later, the Goldsmiths formulated the master plan of monetary evolution that has been used to this very day. This plan was based around the premise that since customers rarely ever removed their own personal belongings, the gold and silver itself, the banker could soon lend out claim checks against his depositors gold in addition to his own. As long as the loans continued to be repaid, his depositors would be none the wiser to the confidence scam. Using others people’s money along with the efforts of future business entities, the Goldsmith could literally profit from the mastermind principle by leveraging not only his own money, but the money of fellow depositors.

Recognizing that they could create even greater wealth, the Goldsmiths then began to loan out a fraction of other peoples money they stored in their warehouses at a 50% percent profit on the money loaned. For example, if the warehouse stored $100,000 in Gold coins, and they had written $100,000 in receipts backing up those coins, they could loan out another $1000 in receipts and collect $500 dollars. This was the catalyst for Fractional Reserve Banking. What people did not realize is that there was no longer a one-to-one ratio in terms of Gold coins to paper receipts. In this case, only 50% of the coins were needed to back up 100% of the paper receipts, but more importantly, it didn’t even have to be their own money backing the loans.

The Goldsmiths had now entered the great game of finance as they were no longer creating wealth slowly by charging a fee for simply storing and protecting the gold coins, but now they were creating wealth exponentially by lending out paper receipts that were only backed up by 50% in Gold coins. The part which went unnoticed to all was the fact that it wasn’t their own money or Gold the bankers were lending out.

Early on, the people didn’t grasp the concept that they were quietly left out of the opportunity to cash in on the newly emerging money lending program since it was, in fact, their own money the Goldsmiths were lending out and profiting upon. Thus began the great empire of banking and wealth generation at the expense of other peoples money, which is essentially created by other peoples efforts. By artificially inflating the money supply and loaning out phony receipts, literally out of thin air, the greed monster began to consume more and more Fractional Banking Goldsmiths. Thus, the monster known as the Central Banking Industry slowly matured through the ages.

I’m sure you already recognize this is a fraudulent business that is not allowed in any other industry. If the Wheat farmer back in the 16th Century, or any other century for that matter, loaned out the grain they were supposed to have in storage, they would be considered a criminal and be placed in prison by any laws that govern a nation, yet incredibly, through the ages, the banks have been allowed to do this. Although you won’t find much of this information in any of the history books today, much of which is by acute and devious design, since the real culprits to this crime have taken over the educational system to ensure that this, in fact, is hidden from the masses. Our early American revolutionary fathers were largely seasoned entrepreneurs who were well aware of the dangers of fractional reserve banking practices instituted by the central banks, which of course, had the backing of government policy which ultimately protected the monopoly.

Our American revolutionary fathers battled the central banking crusaders literally at the turn of every decade throughout the first one-hundred years of American history. Most of the wars and major political battles within congress, from 1776 - 1876, were centered around the dangerous and fatal issues behind fraction reserve banking practices, which is to this very day, the feature characteristic of the central banking monopoly. Most historians miss the central concept that although America won the Revolutionary battle with the mother country, Great Britain in 1776, eventually, through the creation of the Central Banking mechanism, known as the Federal Reserve, Great Britain has indeed won the war!

Treasury Secretary: Alexander Hamilton (1st Treasury Secretary) - The Rise of Central Banking

1791 was the year that the first central banking blip on the American radar began to appear. The first Bank of the United States, America’s first Central Bank, was orchestrated to expand the supply of paper money for the benefit of the government and the commercial banks. Hamilton, among the first of a long line of collectivists to control the American empire, believed in a strong central government whose power could ultimately be expressed by regulating the currency.

Thomas Jefferson opposed this view as he saw the central bank as an undemocratic tool that would benefit the northeastern banking establishment. The fiat system and phony economy produced by it, which historically has always eventually created massive inflation was disassembled after 20 years in operation. This kick started the second war between Great Britain and America known as the War of 1812.

Jefferson was vehemently opposed to a central government controlling the economic coffers of congress. This is precisely what the constitution was trying to avoid and the very reason America wanted to separate their interests away from the mother land.

After the War of 1812, the American government, led by the lobbying efforts of the Eastern Establishment rallied in yet another attempt to create a central bank. This second central bank was equally denounced by Andrew Jackson, who termed it “A monster bank benefiting a few wealthy elite’s at the expense of the many.”

The second central bank inflated the money supply which brought about a boom initially which was quickly followed by a bust. This has been the consistent pattern of behavior for every government who institutes a central banking mechanism over the ages, and this boom-bust cycle has been a prominent feature throughout the economies of the 21st Century.

Just as quickly as the money supply was introduced in order to precipitate the boom, a crash was initiated when the money lenders contracted the supply of money, and the business’s that became dependent on the money supply from the central banks quickly went out of business when it was no longer available.

In 1834, Jackson helped to establish uniformity and structure within the banking houses by establishing the gold standard. The dollar was worth approximately 1/20th of an ounce of gold. As understood and promoted by the founding fathers who signed the Constitution in 1776, the gold standard was the basis for the money of the people because it held its constant value and couldn’t be tampered with, nor could it be inflated to increase government expenditures at the expense of the tax paying public through price gouging.

In 1836, Jackson succeeded once again in abolishing the second attempt by the European Central Banks to corner the American market. Once again, this was secretly and privately orchestrated by the Rothschild Banking Dynasty. By 1840, however, speculators who were driven by the sudden gold and silver discoveries quickly set up shop and established large banking houses, and once again were operating under the Fractional Reserve Banking mechanism, earning 50% profit from other peoples money, often times only backing up their paper receipts with 10% in gold, thus the inflationary rise slowly began to mature.

By 1862, President Abraham Lincoln - in an effort to fund his ill progressing war against the south - formed a new government issued currency known as “Greenbacks” (printed in green ink instead of the usual black ink) to help finance the Civil War. Through executive power upon order of the President, America once again went off the gold standard. Throughout history, the common practice for any government seeking war financing without directly taxing its people, which is highly toxic, unpopular at the polls, and volatile to the masses, has been to go off the gold standard via a central banking mechanism.

The reason for this is simple. The gold standard places strict limits on the federal government and the money supply is less fluid or elastic. The fiat “Greenbacks” were deemed legal tinder by the federal government, but they were not redeemable in gold. The people were forced by law to accept these “Greenbacks” even though gold currency was still being produced. Ultimately, the power of the central government, who by force of law strangled American citizens into accepting this medium of false currency, set in place the ideals for the Federal Reserve Banking system, which benefited the wealthy elite of the Eastern Establishment, the descendants of the very men who tried to establish a central banking system in the early days of our Republic.

After the War, by 1879 the nation went back on the Gold standard and America embarked on its greatest period of prosperity in its history, even by todays standards. By 1899, the total output of goods and services improved by an unprecedented rate of four percent per year. With a sound monetary system in place, backed by the gold standard, the interest rates on the loans issued by the banks could not be manipulated as they were under the fiat system which produced a series of boom-bust cycles which benefited the elite banking houses. This period was ultimately defined by genuine savings and investments, which led to more capital goods and higher labor productivity than any other period in US history.

The middle class was quickly prospering and moving into the elite classification. This would soon change as the aristocrats would not stand for competitors who were eager to achieve the security and lifestyle that they were so accustomed and entitled to have.

The First True Monopolizing Empire:

In the midst of this prosperity, the large industrialists and profiteer’s were busy trying to expand their empire through the power of monopoly and cabals, which were protected by government regulations. In 1887, the Interstate Commerce Act provided the large railroad elite’s both the comfort and opportunity to block the smaller conglomerates from competing within the burgeoning financial empire as the railroad industry surged across the country.

The significance of this is the fact that the same feature families that were involved in conspiring the central banking industry were the same feature families involved within the railroad monopoly. In essence, the first truly government sponsored and protected monopoly in our countries history, which ultimately created the vast fortunes of many within the Eastern Establishment, would also surface later in the creation of the Railroad monopoly, which has further led to the establishment of an increasing number of monopolies based on the premise of war profiteering and drug trafficking.

As I have stated in the very beginning of my book manuscript project, there are really only about seven feature players that cause the bulk of the problems. The difficulty is the fact that they move around a lot and are in fact protected by our Federal Government. This can never be more clearly stated and identified as it can with the very roots and beginnings of the monopolistic power plays that swept our nation within the first 50 years after the civil war.

The ICC was put into place to protect the wealthy railroad owners from competition and the same feature players who were involved with our government in establishing the four other monopolies of the period (Railroad, Oil, Automotive and Central Banking through the Federal Reserve) were one and the same. The tip of the power pyramid that controls our country today was in fact created from these four monopolies that triggered the Industrial Revolution, and all the other monopolies that are currently in place today, are still controlled by the feature power families of the old Eastern Establishment who were the feature players who created those monopolies behind Industrial Revolution.

Today, the cartel has matured with great advancements in modern technology. The Pharmaceutical Industry, Arms Industry, Medical and Health Care Industry, Bioterrorism Industry, Mass Media Empire, Steel and Automotive Industry, Petro-chemical Industry, University System and the Food, Alcohol and Tobacco Industries have all been formed and controlled by the same monopolistic power players who were behind much of the industrial revolution.

You will find that the feature family descendants who created the Railroad, Oil, Automotive and Central Banking monopolies are in fact the same and intimately connected to a new wave of monopolistic power entities that are protected by the Federal government!

The governmental protection behind the railroad monopolies were justified at the time as a mechanism to protect the consumers and shippers from increases in prices. Those who wished to utilize the railroads for business or leisure travel were at risk to profiteering and price gouging, so it was explained at the time. The Interstate Commerce Act was supposedly designed to prevent this from happening. However, this did not occur.

The customers were forced to pay higher prices in the long run for utilizing the railroads to ship their goods and services. Once again, a government mandated piece of legislation did the exact opposite of its much portrayed and ballyhooed intent to protect the public from the fleecing of its income due to the ongoing price wars of industrialized expansion.

At present, with the rise in oil and gas prices threatening the Airline Industry, have we not heard repeated pleas by those in the industry for the federal government to control the market?  This isn’t any different than the railroad industry of 140 years ago.  The last thing we need is for the federal government to protect this monopoly, because we will see the same thing occur, exactly as it did in the railroad industry.

By 1896, the government who protected the monopolized railroad industry was poised to do the same thing with the banks. Once again, the feature dynamics of the central banking mechanism were being called into play. Two camps emerged as leaders in the battle to monopolize the banking industry. Both J.P. Morgan, the worlds most dominant private banker, who was a feature agent of the Rothschild family - the dominant private banker behind the Central Bank of England - and John D. Rockefeller, who was the dominant player behind the oil industry and also an agent of the Rothschild Dynasty.  Both were recruited or influenced by Jacob Schiff of the Kuhn and Loeb corporation.  Schiff was sent to America for this very purpose.

On the surface, both Morgan and Rockefeller were intense adversaries. Underneath the surface, both industry tycoons were working as agents of the Rothschild family to create a central banking mechanism that would create cheap credit and an inflated money supply that would be readily available to finance the expansion behind their dreams of empire and world domination, which was known at the time as “The Great Game.”

If the American people had realized at the time that the central banking system was not in their best interest, and would have aided the private bankers themselves, the legislation behind the Federal Reserve would have never passed. The strategy developed which brought the Federal Reserve into action was one of deception. The Great Game strategy is one based on dividing and conquering a society through constructive confusion. Thus, it was sold to the American people as a mechanism to make their money supply more elastic to speed up the financing behind the Industrial Revolution, which was beginning to race onward at warp speed. Little did the public, or the majority of the legislative members of congress realize they were playing right into the hands of the monopoly giants.

The bank reform campaign received a boost in 1907 when there was a run on the Lincoln Trust Company, one of New York’s biggest banks at the time. Thanks to the Fractional Reserve practice of only backing up 10% of their loan total in Gold coins, the banks became insolvent, causing a fierce run on the banks.

The Knickerbocker Trust also failed and was on the brink of bankruptcy when J.P. Morgan provided a $35 Million dollar loan, which bailed the banks out of certain disaster. Wall Street quickly capitalized on the fear that swept the nation concerning the run on the banks, distorting the need for a centralized banking “lender of last resort” to the American public.

The Federal Reserve became the “lender of last resort,” protecting any bank across the country who became financially insolvent. The banks now had a virtual free pass to the discount window and the federal government issued the coinage, while the corporate monopoly giants raked in the profits.

The gullible American population did not understand that the American government, who worked in concert with the corporate monopoly giants would be collecting not only an income tax that was passed in 1913 as well, but a hidden tax called inflation that would sweep the country into a series of boom and bust cycles that would empty the pocket books of the middle class through price gouging and the decline of the dollar.

Every time the Federal Reserve kicked into gear and printed out more money, the American taxpayer would end up paying both direct and indirect taxation, and the corporate monopolies would ultimately collect the rising tide of income. This was the strategy behind the battle known in Corporate America as “The Great Game.”

The Fed is Created at Jekyll Island:

According to Dr. Hans Hoppe, a world economist at UNLV who was interviewed in the You-Tube video “Money, Banking and the Federal Reserve,” “The question is, however, is it really desirable to have such a thing as a lender of last resort. The correct position appears to me that every single bank should be responsible for its own debts and contractual obligations. If banks without prudent policies go bankrupt, it shouldn’t be considered a bad thing, but a magnificent thing because the danger of bankruptcy is what makes the banks adhere to sound policies in the first place.”

If the sound principles of supply and demand that the gold standard actually protects were in operation in the first place, the fraudulent banks who do not utilize prudent practices would simply go out of business because they would be deemed untrustworthy by the American population. This is perhaps the greatest unifying aspect of adopting a gold standard for American monetary policies. The crooks would be forced out of business because they wouldn’t be able to manipulate both the interest on the phony loans nor would they be able to profit from the demise of the dollar through the inflationary practice of price gouging.

Nonetheless, bank runs and failures continued throughout the first decade of the 20th Century. In 1908, the National Monetary Commission, headed by John D. Rockefeller Jr’s father in law, Senator Nelson Aldrich, was set up to push for a central bank.

In November of 1910, under the guise of a duck hunting trip, 6 men took a train ride to an exclusive private club on Jekyll Island in Georgia. The goal and objective of the outing was to write a central banking act that would monopolize the banking industry and place the monetary policy of the entire nation under their control. The classic gathering read like a who’s who of American wealth, but at the same time also followed the classic guise of a monopolized conspiracy.

A secret and private meeting held by corporate insiders of a feature industry, meeting to discuss and create policy for a hidden agenda which had yet to be incorporated. That my friends has become the standard operating procedure behind the American government, big business and educational policy. These organizations are commonly known as think-tanks today.

The Jekyll Island duck hunting party featured two Rockefeller men, including Senator Nelson Aldrich and Frank Vanderlip who was the president of National City Bank of New York. The two Morgan men included Henry P. Davidson from Morgan Bank and Charles B. Norton who was the president of Morgan First National Bank of New York.

Paul Warburg, a Kuhn and Loeb Partner (the feature agency of the European Central Banking dynasty owned by the Rothschild Empire), and Assistant Treasury Secretary A.P. Andrew who was neutral to both parties.

Historians will quickly note that Warburg was the key player behind the Brown Brothers - Herriman operation, one of the most evil companies in the history of the world. Not only did this organization fund the rise of the Bush family regime, but funded Nazi Germany as well both before, during and after World War II, primarily through the IG Farben Company that created chemical weapons of mass destruction which were utilized in the Holocaust .

Here we have an American corporation, serving both Rockefeller and Morgan interests, who developed weapons to be used by both sides in World War II and immensely profited from the endeavor. This follows the Rothschild banking strategy of funding both sides of every war, predating the American Revolution!

After 10 strenuous days of hammering out the details of the political agenda, it would take three long hard fought years in congress before the bill was enacted into law. Just prior to Christmas in 1913, while most of the members of congress were away or in the process of leaving for the holiday season, The Federal Reserve Act was passed by a small congressional group and signed into law by president Wilson.

It established a Federal Reserve system to oversee monetary policy and regulate the commercial banks. It should be noted that the coincidence of the Wilson Administration, which signed the bill into law, should come at no surprise. At the height of a progressive era distinguished by the rapid expansion of government bureaucracy, there were many special deals created by this administration that signified a close and significantly personal relationship between corporate monopoly giants who were in bed with many levels of government policy orchestrator’s.

Twelve regional reserve banks were concentrated across the country. The cities of the regional banks included Boston, New York, Philadelphia, Richmond, Atlanta, Cleveland, St. Louis, Chicago, Minneapolis, Kansas City, Dallas and San Francisco. The Board of Governors located in Washington D.C. controlled and coordinated their activities. The board was, and is still made up today, of seven members appointed by the president. Even though there were 12 regional banks to regulate the industry, Wall Street soon took control of the operation.

As president of the Fed, Morgan agent Benjamin Strong seized control of the organizations Open Market Committee Operations. Strong would remain the dominant force of the Fed until his death in 1928.

The Federal Open Market Committee located in Washington D.C. directs the Fed’s most important monetary policy instrument, the purchase and sale of government securities on the open market. To increase the supply of money in the market (inflation) the Fed buys government securities from a few handpicked firms with money that is newly created out of thin air. I hope you caught that phrase, “a few handpicked firms.” To tighten money and credit, the Fed sells securities, but the sticky part is that it can act on its own discretion when inflating or tightening the market.

Every government desires the ability to create new money. The alternative to creating money out of thin air is raising taxes, a very unpopular mechanism for politicians in times of election much less a non-election year. It’s much less painless and much more profitable to utilize the hidden tax of inflation, which can be ultimately blamed on other factors over a period of time, thus, it is less identifiable to the masses.

The key to this confidence caper is the fact that none of this is taught in the public educational system, which is a tremendous irony considering our nation is supposedly founded on the capitalist principle. Considering the importance of money to the capitalistic system, it stands to reason that it should be taught as early as possible in the educational system. The fact that it is not is a huge red flag supporting the idea of a suppressed conspiracy.

Considering the negative affects of increasing the money supply (inflation) does not show up immediately, which buys political think-tank organizations time to create distractions, thus, hiding the impending calamity, the blame can and has been historically shifted to anything from the weather to over speculating in the stock market. Other common excuses include natural disasters, OPEC and the increasing energy demands as world population continues to increase, world famine created by crop shortages, E Coli and Salmonella outbreaks in the food supply, pandemic disease outbreaks like AIDS, Swine Flu, or the newly emerging Asian Bird Flu crisis, or the new kid on the block, terrorism.

Take your pick, many of these excuses have been repeatedly utilized on a yearly basis, much like the yearly trade winds invading the Hawaiian Islands. Economic history always repeats itself.

Another device the Fed’s use in controlling the amount of inflation is setting the discount rate. This is the interest rate charged to member banks when they barrow short term from the appropriately titled discount window. Anytime the Fed lowers discount rates available at the discount window for loans, the banks will likely borrow money to increase the amount of money they have to lend.

Home, auto and boat loans as well as credit card rates become cheaper and readily available to the masses, sparking another surge of inflation due to the increase in money supply which is uncontrollably flowing into the marketplace.

The FED can also manipulate the nations money supply by raising or lowering the Reserve Requirement. Through this rule, the banks are required to set aside a certain percentage of their funds as reserves to meet depositors demands. Looking back at the prelude to the Great Depression of 1929, the Fed cut the Reserve Requirements in half over the next four years which literally doubled the nations money supply by the end of World War I. Due to the smorgasbord of rules and regulations, one literally loses sight of the fact that the real power behind the Fed is its ability to monopolize the money supply, benefiting the private hands of the elite who are embedded within the monopoly itself. Even though the US was still on the Gold Standard in 1913, this was quickly eroded by the doubling of the money supply and the natural laws of supply and demand, held in place due to the Gold Standard itself, quickly eroded with it.

From 1919 to 1925, the Fed continued to expand the money supply, but only backed the reserve notes at 40% in Gold. This allowed the money supply to be increased an additional two and a half times from the previous levels between 1913 and 1919. As Dr. Hans Hoppe so eloquently illustrates, “The commercial banks are permitted to create check book money on top of Federal Reserve Notes…That is to say, the commercial banks are only obliged by law to hold reserves of 10 percent to back all demand deposits. The hidden significance is that Ninety percent of the bank deposits are backed by absolutely nothing.”

Not to be outdone, the Federal Reserve adds yet another additional inflationary layer to an already unstable monetary solution. For example, if the central bank has $100 dollars of gold in its reserve vaults and a 10 percent reserve requirement, it can print out $1000 dollars of new notes and requirements, which become the reserves of the commercial banks. The commercial banks then take this same $1000 dollars, which, again, is created out of thin air, and can multiply their $1000 reserve into $10,000 through the same Fractional Reserve Loan mechanism.

This pyramiding of money creates extreme wealth to be channeled into the hands of the wealthy monopolists, who behind the Federal Reserve policy are protected by governmental regulations, but hidden to most, an inverted pyramid of debt is left in the hands of the tax paying public, who pays at both ends of the tax spectrum; indirectly through price inflation and directly through the IRS tax laws. Nearly 80% of the income earned by a blue collar American tax paying citizen is stolen in this regard.

Now if you or I created a scheme in which $100 of real gold could be developed into $10,000 magically in thin air, we would likely be locked up in prison with the key to freedom being destroyed in the process. It is a money making scam! A complete fraud and the American tax paying public has bought into it hook, line and sinker, simply because they do not understand the “Mandrake Mechanism of creating money out of nothing!

As soon as this $10,000 begins to circulate in the economy, it drives up the monetary prices of goods and services, which reduces the buying power of ordinary blue collar citizens, thus establishing the class system that the elite monarchy so desires. The elite monopolists capitalize on getting the money first hand before it enters the market place, so their transactions retain the full monetary power of the dollar. The working class, by the time the money has trickled down through various middle men layers, who get their fair share as well, literally gets 4 cents worth of buying power on every dollar produced in the 21st Century.

This maintains the transfer of wealth and power to the monopolized elite, and completely destroys the middle class to the point where the elite monopolists have all the power and wealth, while the masses are powerless, frustrated and broke due to the inflationary index of direct and indirect taxation.

The key players who benefit from this fraudulent scam are the hidden government itself; the central banks, government contractors, or the middle men associated with government contractors who lobby congress to purchase their products or services in the War profiteering industry, whether the enemy is real or perceived.

By making enormous amounts of credit easily available to the masses, the Fed can drive down interest rates, which ultimately send out the wrong signals to investors in terms of stabilizing the economic indexes. This sets in motion an unsustainable investment boom to be followed by the inevitable bust in the economy. Through it all, the same monopoly capitalists, who are deeply embedded within the central banking scam of the Federal Reserve, both create and profit off of both ends of the boom-bust cycle. The Federal Reserve system and those who are intimately and privately behind it are the ultimate criminals who the Securities and Exchange Commission define as inside traders. They control and manipulate Wall Street into buying or selling frenzies. And this boom-bust business cycle is triggered into place by the inevitable battle cries of war, natural disaster or empire building.

During WWI, the US government once again went off the Gold Standard to finance the war. Money created from nothing instantly created billionaire wealth for those within the Central Banking monopoly and in the process the national debt rose from $1 Billion to $27 Billion. A sharp spike of inflation followed which set off a uncontrolled wildfire of constant retraction and expansion of the money supply in the economy. In an effort to put out this raging wildfire, the Fed halted inflation, which caused the interest rates to double over the next 18 months.

By 1921, the market began to recover as new technology increased productivity and created new micro economies within the population base. The Industrial Revolution, stimulated by the war industries market, began to produce automobiles, electric appliances and heavy industrial equipment. The roaring twenties were literally that. The economy was roaring. An affluent work force was being created, which hid the rise of inflation. However, much of the economy was distorted by a Fed generated inflationary credit expansion. The parallels to our modern day banking crisis are very striking. History within a fiat money scheme, always repeats itself.