The Shadow Bank – History of the Federal Reserve

The Federal Reserve has operated in the shadows since its inception in 1913.  While its defenders claim it was designed to give stability to financial markets, what it has really done is preside over the near complete destruction of the dollar, which since its inception has lost more than 95% purchasing power. 

The FEDS LOOSE MONEY POLICY IS THE CULPRIT BEHIND THE CURRENT ECONOMIC CRISES.  By keeping interest rates low, almost nonexistent,  rather than allowing the free market to set rates, bubbles were created, bubbles that eventually burst.  And its not over yet!   

On March 13, 1907, the New York Stock Exchange crashed, triggered by failed speculation of  two brokerage firms, but the real Shock that set the crash in motion was the San Francisco quake in 1906.  The devastation drew gold out of the world’s major money centers and created a liquidity crunch by  late spring 1907.   Easy credit and wild financial speculation added to the problem.  Panic erupted!  People were scared and called on the government to save them.   BE CAREFUL WHAT YOU ASK FOR!

In response to the panic,  the government set up  the National Monetary Commission, create by the Aldrich Vreeland Act of 1908, to inquire into and report on needed or desirable changes to our monetary system and the laws relating to banking and currency.  Senator Nelson Aldrich, as Republican Majority Leader was head of the Commission. Knowing that any real reform would be detrimental to the powerful banking families who owned Congress,  and to further his socialist agenda of never let a crises go to waste, (sound familiar)  Aldrich turned to J. P. Morgan. 

Jekyll Island,  Georgia, purchased by Morgan and a group of wealthy friends for a retreat/hunt club,  WAS TO BECOME THE SITE OF A CONSPIRACY THAT WOULD  FOREVER CHANGE OUR COUNTRY.

In 1910,  Senator Nelson Aldrich, maternal grandfather of Nelson Rockefeller; A. Piatt Andrew, former Assistant Economics Professor at Harvard and future Director of the Mint,  Assistant Secretary of the Treasury and Congressman; Frank Vanderlip,  President of National City Bank of  New York and  former Assistant Secretary of the Treasury;  Henry P. Norton,  President of (Morgan’s) First National Bank of New York;  Paul Moritz Warburg, partner in  Kuhn, Loeb & Co., and first appointed member of the Board of Directors of the soon to Federal Reserve Bank; and Benjamin Strong,  an aide of  J.  P.  Morgan and future  Board Member of the Federal Reserve, traveled  in secret to Jekyll Island, to write banking and currency legislation.  With Paul Warburg at the helm, the draft proposal was completed in only nine days.  It was Warburg that came up with the name Federal Reserve System and  warned his partners in crime not to use the term “central bank” to describe the proposal.  A very enlightening  book  is  “Secrets of The Federal Reserve”  by Eustace Mullins which can be read on line.

The conspirators hurried back to New York to start a nationwide campaign to sell the newly drafted  “Aldrich Plan”, enlisting  the help of Harvard, Princeton and the University of Chicago, to push their propaganda.  Woodrow Wilson,  Governor of New Jersey and former President  of Princeton, was selected as spokesman.

Senator Aldrich presented “his” plan to Congress as a culmination of three years of hard work, study, and travel by members of the National Monetary Commission, with expenses of more than $300,000.  This was the first time that the other members of the Commission heard that they had actually written a plan  but they fell in-line behind Aldrich —  Just like today’s Congress – one hand washes the other.    After much posturing for the voters, debate ended and  the Aldrich Plan, labeled a “central bank scheme,”  and was shelved.

The Presidential campaign of 1912 reads like it could have come out of yesterday’s headlines.  There was Republican Taft running for re-election against  Democrat Woodrow Wilson, both with a monetary bill in their platform – Taft had the Aldrich Plan and Wilson the Federal Reserve Act.  No one bothered to inform the voters that both drafts, with few exceptions, were the same or that Paul Warburg was author of both. Wilson wasn’t drawing much enthusiasm from the voters and everyone expected Taft to win re-election but, “fate” had other plans.

Former Republican President Teddy Roosevelt threw his hat in the ring on the Bull Moose ticket.  The press, in bed with the wealthy bankers [nothing ever changes], covered Roosevelt and pretty much ignored the other candidates. (Remind you of the 2012 campaign?)  Roosevelt cut into Taft’s support and,  as amazing as it seems, Woodrow Wilson won.     Of course the bankers were financially backing all three candidate so they had nothing to lose, or did they?  With the Democrats firmly in command, the Shadow Bank was soon to become a reality.

Again posturing for the voters, hearings were held on the “so called new legislation” (Federal Reserve Act)  but those in opposition were never called to testify. Paul Warburg and Colonel Edward House, (forerunners of the 2008 “CZARS” movement) worked behind the scenes, exerting pressure when needed.  After much argument and debates, the legislation passed on  December 21, 1913.  Of course, by that date,  most members of Congress had already left Washington for the Christmas Holidays before the vote was taken.    Doesn’t that sound vaguely familiar?

Colonel Garrison, an agent of  Brown Brothers Bank would later write that “Paul Warburg was the man who got the Federal Reserve Act together after the Aldrich Plan aroused such nationwide resentment and opposition.  The mastermind behind both plans was the Baron Rothschild of London.”

When the bill passed, Congressman Lindbergh stated that “this act establishes the most gigantic trust on earth.  When the President signs this bill, the invisible government by the monetary power will be legalized. . .the worst legislative crime of the ages is perpetrated by this banking and currency bill.”

On the day the bill was signed into law, the Constitution ceased to be the governing covenant of the American people.  We had turned the fate of our country over to a small group of international bankers.   Socialist had not only  wormed their way into key government positions, they were in the process of   taking control  of our educational system and held monopolies in major industries and banking. and with the passage of the Federal Reserve Act, they had NOW gained control over our money.

Woodrow Wilson in 1913 in “The New Freedom“  wrote  “some of the biggest men in the U.S., in the field of commerce and manufacturing, are afraid of somebody, are afraid of something.  They know that there is a power somewhere so organized, so subtle, so watchful, so interlocked, so complete, so pervasive, that they had better not speak above their breath when the speak in condemnation of it.” The book can be downloaded or read on line.

Wilson would later write that  “I am a most unhappy man.  I have unwittingly ruined my country.  A great industrial nation is controlled by its system of credit.  Our system of credit is concentrated,  the growth of the nation, therefore, and all our activities are in the hands of a few men.  We have come to be one of the worst ruled, one of the most controlled and dominated governments in the civilized world – no longer a government by free opinion, no longer a government by conviction and the vote of the majority, but a government by the opinion and duress of a small group of dominant men.”

In 1932 Congressman Louis T. McFadden would say in a speech before congress that “we have, in this country, one of the most corrupt institutions the world has even 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.”

December 21, 2016, will mark the 103th year that the Federal Reserve and the “shadow government” behind it have ruled this country. The Federal Reserve System was created in secrecy for the benefit of the wealthy and today it still operates in secrecy. It was created by Socialist Democrats and is still controlled by Socialist Democrats and a few Socialists hiding behind the Republican party.

“If the American people ever allow the banks to control the issuance of their currency, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children will wake up homeless on the continent their fathers occupied.  The issuing power of money should be taken from the banks and restored to Congress and the people to whom it belongs.” Thomas Jefferson,  “The Story of Our Money,”  by Olive Cushing Dwinell.


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