Some News about Goldman Sachs, Morgan Stanley, Bear Stearns and J.P. Morgan Chase

In February 2008 Goldman Sachs, Morgan Stanley and Bear Stearns were under investigation by the FBI and the SEC, as well as by the states of New York and Connecticut in the default of mortgage-backed bonds.

They are looking for criminal activity and insider trading in the packaging of subprime loans as securities.

Meanwhile the rumor persists on Wall Street and in Frankfurt, London and Paris that J.P. Morgan Chase has a $4Billion dollar loss on a derivatives trade coming very soon.

Now J.P Morgan Chase pays $2 a share ($270 million) to buy all of Bear Stearns - less than one-tenth the firm's market price on Friday. Only a year ago, Bear's shares sold for $170. The sale price includes Bear Stearn's soaring Madison Avenue headquarters.

The deal for Bear was done at the behest of the Fed and Treasury Department with the Fed approving a $30 billion credit line to help J.P. Morgan do the deal for the troubled firm, which was driven to the brink of bankruptcy by what amounted to a run on the bank.

Isn't it interesting that the Fed, which is a privately owned corporation (see my series: The Federal Reserve is neither Federal nor a Reserve. It is one of the Greatest Scams of Alltime!) was created by 7 men in 1910 at a highly secret meeting on Jekyll Island. Two of these men were; Henry Davison, senior partner of J.P. Morgan Company and Benjamin Strong, head of J.P. Morgan's Banker's Trust who 3 years later became the first head of the Federal Reserve System.

The Federal Reserve is neither Federal nor a Reserve! It is one of the Greatest Scams of Alltime!

Episode 11: Right From the Horse's Mouth

Here is a quote from Page 2 of Modern Money Mechanics, a publication of the Federal Reserve Bank of Chicago:

"The actual process of money creation takes place in the banks."

Subsequent to that, a quote from Page 8 of Philadelphia's The National Debt, which is also a Federal Reserve Bank publication:

"The Federal Government, with the cooperation of the Federal Reserve, has the inherent power to create money - almost any amount of it. This power makes technical bankruptcy out of the question."

Federal Reserve member banks are protected from any risk of bankruptcy. Just by keeping a 10% reserve rate in the bank's Federal Reserve Account they are allowed to loan more money than they have. For example, a $10,000 "deposit" allows the bank to lend $90,000 which it does not have and still remain protected.

How? The American public protects the banks from bankruptcy by paying higher prices for goods and services should the Fed have to dilute the money supply by printing sufficient money to prevent the bankruptcy of a bank.

The Federal Reserve is neither Federal nor a Reserve! It is one of the Greatest Scams of Alltime!

Episode 9: McFadden Says the Fed should be Liquidated and Government
Officers violating their oaths Impeached and brought to Trial!

Rep. Louis T. Mcfadden (R. Pa.) rose from office boy to become cashier and eventually President of the First National Bank in Canton, Ohio. For 12 years he served as Chairman of the Committee on Banking and Currency, making him one of the foremost financial authorities in America.

He fought ardantly and continuously for financial integrity and for the return to constitutional government. Here is a portion of Rep. McFadden's speech, quoted from the Congressional Record, pages 12595 - 12603.

"Federal Reserve banks are private credit monopolies which prey upon the people of the United States for the benefit of themselves and their foreign customers; foreign and domestic speculators and swindlers; the rich and predatory money lenders."

"This is an era of economic misery and for the reasons that caused that misery, the Federal Reserve Board and the Federal Reserve banks are fully liable."

"No man and no body of men is more entrenched in power than the arrogant credit monopoly which operates the Federal Reserve Board and the Federal Reserve banks. These evil-doers have robbed this country of more than enough money to pay the national debt. What the government has permitted the Federal Reserve Board to steal from the people should now be restored to the people."

"Our people's money to the extent of $1,200,000,000 has within the last few months been shipped abroad to redeem Federal Reserve Notes and to pay other gambling debts of the traitorous Federal Reserve Board and the Federal Reserve banks. The greater part of our monetary stock has been shipped to foreigners."

"Why should we promise to pay the debts of foreigners to foreigners? Why should American farmers and wage earners add millions of foreigners to the number of their dependents? Why should the Federal Reserve Board and the Federal Reserve banks be permitted to finance our competitors in all parts of the world?"

"The Federal Reserve Act should be repealed and the Federal Reserve banks, having violated their charters, should be LIQUIDATED IMMEDIATELY!

"GOVERNMENT OFFICERS WHO HAVE VIOLATED THEIR OATHS SHOULD BE IMPEACHED AND BROUGHT TO TRIAL!"

The Federal Reserve is neither Federal nor a Reserve! It is one of the Greatest Scams of Alltime!

Episode 7: How the Fed Works - the Fed Controls the Government and
Not the other way around!

"Allow me to control the issue and the nation's money and I care not who makes its laws."
Amshell Rothschild


The Federal Reserve Bank is a private corporation. Black's Law Dictionary defines the Federal Reserve System as:

"Network of 12 banks to which most national banks belong and to which state chartered banks may belong. Membership rules require investment of stock and minimum reserves."

In the case of Lewis v United States, Federal Reporter, 2nd Series, Vol 680, Pages 1239, 1241 (1982) the court said:

"Each Federal Reserve Bank is a seperate corporation owned by commercial banks in its region. The stock-holding commercial banks elect two thirds of each bank's nine member board of directors."

In Black's Law Dictionary we find that these privately owned banks actually issue money.

"Federal Reserve Act Law which created Federal Reserve Banks which act as agents in maintaining money reserves, issuing money in the form of bank notes, lending money to banks, and supervising banks."

The privately owned Fed actually creates and issues the "money" we use. In 1964, the House Committee on Banking and Currency, subcommittee on Domestic Finance, at the second session of the 88th Congress, put out a study entitled Money Facts which contains this description of what the Fed is:

"The Federal Reserve is a total money-making machine. It can issue money or checks. And it never has a problem of making its checks good because it can obtain the $5 and $10 dollar bills necessary to cover its check simply by asking the Treasury Department's Bureau of Engraving to print them."

Article 1, Section 8 of the Constitution states that only Congress shall have the power to coin (create) money and regulate the value thereof.

Today however it's the Fed, a privately owned company, which creates and profits by printing money through the Treasury and regulates its value.

Clearly it was Congress on December 22. 1913 who illegally gave the Fed the right to print money through the Treasury ... it was President Wilson who signed it into law on the following day, clearly and directly violating Article 1, Section 8 of the United States Constitution.

Why were the members of Congress supporting this law not charged with treason? Why was President Wilson not impeached and also charged with treason? Why are all members of government from 1913 untill today who have not worked to repeal this law not charged with treason? Is it not their sworn duty to uphold the Constitution of the United States?

The Fed creates money "out of thin air" whenever it benefits them and loans it back to us the people through banks and charges interest on our own money!

The Fed also buys government debt with money they themselves have printed and charges government interest. This money is repaid to the Fed through the government charging us income tax. IS THIS NOT FRAUD?

On June 10, 1930 Louis T. McFadden (R.Pa.), former President of the First National Bank in Canton Ohio, and for 12 years the Chairman of the House Banking Committee described the Fed in the Congressional Record, House Pages 1295 and 1296 as follows:

"Mr. Chairman, we have in this country one of the most corrupt organizations the world has ever known. I refer to the Federal Reserve Banks. The Federal Reserve has cheated the Government of the United States and the people of the United States out of enough money to pay the entire national debt."

Rep. McFadden went on to say, "Every effort has been made by the federal Reserve to conceal its power but the truth is the Federal Reserve has USURPED THE GOVERNMENT OF THE UNITED STATES! IT CONTROLS EVERYTHING HERE AND IT CONTROLS ALL OUR FOREIGN RELATIONS. IT MAKES AND BREAKS GOVERNMENTS AT WILL!