"And Jesus went in to the temple of God and cast out all them that sold and bought
in the temple, and overthrew the tables of the moneychangers, and the seats of
them that sold doves, and said unto them, It is written, My house shall be called
the house of prayer; but ye have made it a den of thieves." (Matthew 21:26 KJV)
"Permit me to control the money of a nation, and I care not who makes its laws." (Mayer Rothschild: Patriarch of the Rothschild banking empire)
In a new bail-out initiative, the government expanded its plan to jump start the economy.
The scheme will provide 800 billion dollars added to the more than 700 billion that was offered a month ago to rescue financial behemoths and put the economy back on the road to recovery.
This new amount, like the earlier sum, is being released through a joint effort of President Bush and the Federal Reserve System (or the Fed). Yet exactly what is the Federal Reserve System and what role does it play in the nation's economic health or lack thereof?
Also, what is it about our financial system that has resulted in incredible wealth for a few, a shrinking middle class for many others, and abject poverty for multitudes?
For decades, the American economy has vacillated from periods of boom, to periods of bust that are characterized by inflation, sharp fluctuation in interest rates and a plunging stock market.
Recently a Wall Street financial expert was asked (if it was true that the US treasury is trillions of dollars in debt then) where are the billions of dollars coming from that are supposed to be used to shore up the nation's financial institutions as well as its automobile manufacturing giants? The expert replied that he did not have the answer to that question.
There are, however, some historians and economists who claim that they do know the answer, and they inform us that the money comes from the Federal Reserve System and that it is also this system that is behind the economic upheaval and tsunami that grips America and the world.
The Fed
On December 23, 1913 a strange bill was slipped through the US Congress. It was called the Federal Reserve Act, and had as its backers some of the wealthiest families and banking conglomerates in the history of the world .They included such financial titans as the Rockefeller family of New York, the Lehman Brothers; the Lazard Brothers of France, Moses Sief of Italy; Khun, Loeb and Warburg of Germany; Goldman Sachs, and the Rothschild's financial dynasty based in London and Berlin. [1]
Basically, the Fed was designed to empower a central banking entity that would control the nation's money supply. It would also be able to raise or lower interest rates at its discretion as well as lend money to other banks (two thirds of US banks are in this system) and even to create money out of thin air through the issuance of worthless fiat (or Federal Reserve notes) and a method known as fractional banking where only a tenth of money is needed in order to lend an additional 90 percent above the amount available in the banks vaults or on its electronic balance sheets. In order to do this it was necessary to create a monetary system divorced from the gold standard so that there would be no stabilizing relationship between gold reserves and the paper currency that it was meant to represent.
This would enable the centralized banking elite to circumvent the US Constitution's laws on who and by what methods the nation's money is to be produced and controlled (see Article 1 Sections 8 and 10) and to eventually enslave the people through the fabrication and distribution of fake paper money and through lending on credit at high interest while requiring that collateral be offered to guarantee the loans and prompt a condition in which the real property and wages of the people can be confiscated.
The Money
At the core of the nation's financial crisis is the devaluation of money through abolishing the gold-standard. This was accomplished by the extension of credit while slowly debasing the currency into what is essentially promissory notes that do not grant the holder anything of intrinsic value if the bearer was to demand payment for it from the banks.
The purpose of paper money has always been to serve as a promise or contract in the form of a bill (with a specified amount) to be redeemed upon request by the bearer. But with the nation's economy being based on credit and the illusions of fractional banking, along with the distribution of valueless fiat notes that can only be redeemed at banks for assets that do not exist; the use of real money along with its availability is a distant memory. Andy Naylor explains:
"Being unable to trade in wealth such as gold and silver coin enslaves to those who
create and control what is being called money. All it took to rob the public was to
convince people that paper and credit are money. The Federal Government and the
Federal Reserve have the power to create unlimited amounts of credit because credit
does not exist. It is not a tangible substance, but an idea represented by bookkeep-
ing entries and computer symbols.
To pay means to deliver a tangible substance as money like gold or silver coin.
Where there is no substance, there is no payment. There is only pretend payment
Banks do not really lend money, they only pretend to lend money. They put no
money in a borrower's account. They only make bookkeeping entries that are
reduced as the borrower writes checks against imagined deposits."[2]
On June 4, 1963 President John F Kennedy signed Executive Order 11110. This decree was designed to neutralize the Federal Reserve by placing the power to create and issue money back in the control of the US Treasury Department. Kennedy also introduced over 4 trillion dollars in one and five dollar bills into circulation that were backed by silver with plans to introduce ten and twenty dollar bills that were also backed by and redeemable for silver. This order effectively undermined and signaled the demise of the powerful Federal Reserve Banking System. [3]
Kennedy reasoned that bank notes issued by the Federal Reserve were unconstitutional and he had the courage to correct this. Many historians believe that his bold and courageous stance, along with his resolve to end the American involvement in Vietnam, contributed to his assassination in Dallas several months later. According to the article, JFK vs Federal Reserve:
"Kennedy knew that if the silver backed United States Notes were widely
circulated, they would eliminate the demand for Federal Reserve Notes.
This is a simple matter of economics. United States Notes were backed by
silver and Federal Reserve Notes were (and still are) backed by nothing of
intrinsic value. As a result of Executive Order 11110, the national debt
would have prevented from reaching its current level (almost all of $9
trillion in debt has been created since 1963).
Executive Order 11110 also granted the US government the power to repay
past debt without further borrowing from the privately owned Federal Reserve
which charged both principle and interest and all new money it created.
Finally, Executive Order11110 gave the USA the ability to create its own
money backed by silver, again giving money real value. [4] Ibid
Perhaps the most insidious aspect of the Federal Reserve System and its reliance on runaway credit, fake money, and usurious interest rates is its relationship to war .Banks (whose life blood are usurious interest rates) pressure sycophantic politicians to provoke wars, then they loan money to governments and saddle tax payers with the loan plus all of the accumulated interests.
Beginning with World War I in 1914 (barely six months after the creation of the Fed) and including every major war and protracted military action since, the wealthy bankers have financed wars for profit. Often (as was done in both world wars and in the war between Iraq and Iran in the 1980's) financing both sides of a military conflict to maximize profits and to weaken nations for geo- political control. Jim Marrs writes in his book, Rule by Secrecy:
World War II was fought to stop fascists in Germany, Italy and Japan, who had
been created and financed by secret society members in the West. Despite the
deadly nature of this war, American and British society members continued to
do business with the enemy and then arranged their reconstruction afterward.
"Nowhere was this duplicity more evident than in President Roosevelt's failure to
alert American troops at Pearl Harbor of the impending Japanese attack brought
on by his own containment policies.
Hitler, that great scourge of the twentieth century, was clearly a creation of both
secret societies and their Western financiers.[5]
The Corporate Media
It is the responsibility of journalists to search out facts, to report the truth as accurately and as comprehensibly as they can, and to maintain accuracy and credibility in doing so. Of course, journalists are human beings and (as such) are fallible. Yet, there appears to be a conspiracy of silence in the mainstream media when it pertains to critiquing the Federal Reserve System and its activities over the last one hundred years. And many journalists who work for the mass media behemoths are content to draw huge salaries while failing to inform the public of the violations of the international bankers and the excesses that have left our nation's teetering on the edge of disaster.
It is also the responsibility of American citizens to be aware of the workings of their government as well as the American monetary system and to apply pressure on their elected officials to make corrections where and when they believe they are necessary.
When one realizes that almost all of our nation's media outlets are controlled by a hand-full of consolidated corporations, it is even more important to seek out information from alternative news sites and publishers.
"The built-in biases of the corporate mainstream media," writes Michael Parenti, "faithfully reflects the dominant ideology, seldom straying into territory that might cause discomfort to those who hold political and economic power, including those who own the media or advertise in it."[6]
This inherent travesty has been passed down to us over the generations and is consolidated itself even more as the American people become more lethargic and distracted by the machinations of the privileged elite and their institutions of conformity and misinformation.
Steven Malik Shelton is a journalist and human rights advocate. He can be reached at malikshelton19@aool.com
References:
[1] Accessible online at: www.tysknews.com/Depts/Taxes/fed_banking_fraud.htm
[2] Accessible online at: www.ecclesia.org/truth/reserve.html
[3] Accessible online at: http://foundationfortruthinlaw.org/jfk-vs-fed.html
[4] Ibid
[5] Jim Marrs, "Rule by Secrecy," Perennial Publisher (2000) p. 201
[6] "Methods of Media Manipulation," by Michael Parenti; Humanis Magazine-July/August Issue-1997
© Jan 2009 By Steven Malik Shelton || [TOP]
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