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

Episode 10: Some Fed Facts!

• In 1992 taxpayers paid the Fed banking system $296 billion in interest on money which the Fed created out of "thin air" with no hard assets such as gold, silver or other precious metals to back it up. Nice scam!
• 54% of personal federal income taxes goes to pay this interest. 54% less money to directly benefit American citizens.
• The Fed's books are not open to the public. Why not?
• Congress and the IRS do not have access to the financial records of the Fed. Why does the IRS have the right to know everything about you?
• Congressman Wright Patman was Chairman of the House of Representatives Committee on Banking and Currency for 40 years. For 20 of those years he introduced legislation to repeal the Federal Reserve Banking Act of 1913. The Act still stands today. Why???
• Congressman Henry Gonzales introduces legislation to repeal the Federal Reserve Banking Act of 1913 nearly every year. It's always defeated. Why????
• The Fed is illegal as per Article 1, Section 8 of the United States Constitution. Why does Congress refuse to acknowledge that fact?
• The 16th Ammendment, giving Congress the right to tax you to death, was also enacted in 1913 within months of the Fed's inception. Yet not a single solitary state has ever legally ratified the 16th Ammendment. So just how legal is personal income tax?
• The profit of the Fed is not taxed. So why are you taxed?
• Section 7 of the Federal Reserve Act, passed December 23, 1913 states that much of the profit of the Fed must flow back into the U.S. Treasury. Remember my post on the Unholy 7 meeting at Jekyll Island where some members were upset that too much power was being given to the government and Paul Warburg said; Fuggedahboudit ... lets get the Fed Act passed first and then we'll fix it later to our own liking? Well they did!! In 1959 new legislation was passed to allow the Fed to divert profits to private commercial banks substantially cutting profit flowing to the Treasury. Why did Congress allow this legislation to pass? How many government officials became rich on that two-step?
• The Federal Reserve Banks work on a 10% reserve requirement. For example;
• (1) Let's say the Fed creates $1,000,000 in "Fiat Money" (currency that has no assets whatsover to back it up), except the blessing of Congress, and distributes it to banks.
• (2) The bank "holds" 10% ($1000,000) in reserve as operating capital and then loans the rest out, lets say for the purposes of easy math, at a 10% interest rate.
• (3) The bank then earns $90,000 in interest payments and now also has the $900,000 which it originally loaned. Remember that you are paying interest on money that was created out of thin air, with no hard asset backing, and at absolutely no cost to the Fed except for the paper and ink.
• (4) The bank now deposits the $900,000, retains 10% ($90,000) as operating capital and loans $810,000 at 10% interest.
• (5) After just 2 cycles the bank has $190,000 in operating reserves and has earned $171,000 in interest on money that was created out of thin air. Even David Copperfield would be unable to do this.
• Inflation used to be about 1% every 10 years before there was a Federal Reserve System. After the creation of the Fed in 1913 inflation has skyrocketed to 1,779%
• The Congress will not allow an individual citizen to do what it allows the Fed to do. That is to create illegal U.S. money out of thin air, force people to use it, and pay interest to the Federal Reserve by charging you income tax.
• In 1992 Americans paid $296 billion in interest on government debt which is owned by the Fed.
• In 2006 Americans paid over $352 billion in interest on government debt which is owned by the Fed.
• How many trillions of dollars in total have Americans paid in interest on government debt to the Fed just between the years of 1992 to 2006 alone? How about between the years 1913 and 2008? Now that's heavy duty inflation ... a 1,779% increase in inflation over the 95 years between 1913 and 2008 now seems quite logical.

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

Episode 3: I Don't Believe that it Happened!

It took 9 days for the 7 men to hammer out all of the important details of what would eventually become the Federal Reserve.

For a number of years after the meeting all 7 denied that the meeting ever took place. It was only after the Fed was firmly established that they began openly talking about it.

For those who are still of the opinion that Jekyll Island never happened, several books have been written by some of the participants detailing what they had accomplished. Visit your local library and check them out.

Frank Vanderlip, one of the "unmagnificent 7", wrote an article which appeared in the February 9, 1935 edition of the Saturday Evening Post. Here is a brief excerpt.

" I do not feel it is an exaggeration to speak of our secret expedition to Jekyll Island as the occasion of the actual conception of what eventually became the Federal Reserve System. We were told to leave our last names behind us. We were told further that we should avoid dining together on the night of our departure. We were instructed to come one at a time and as unobtrusively as possible to the railroad terminal on the New Jersey littoral of the Hudson where Senator Aldrich's private car would be in readiness attached to the rear-end of a train to the south. Once aboard the private car we began to observe the taboo that had been fixed on last names. We addressed one another as Ben, Paul, and Abe. Davison and I adopted even deeper disguises abandoning our first names. On the theory that we were always right, he became Wilbur and I became Orville after those two aviation pioneers the Wright brothers. The servants and train crew may have known the identities of one or two of us, but they did not know all and it was the names of all printed together that would've made our mysterious journey significant in Washington, Wall Street, even in London. Discovery we knew simply must not happen."

"If it were to be exposed publicly that our particular group had gotten together and written a banking bill, that bill would have no chance whatever of passage by Congress."

Next - Episode 4: What exactly is the Federal Reserve?

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

Part 2: Secret Journey

In November of 1910, Senator Nelson Aldrich sent his private railway car to the railway station in New Jersey to take himself, Abraham Andrew, Frank Vanderlip. Henry Davison, Charles Norton, Benjamin Strong and Paul Warburg to their clandestine meeting on Jekyll Island. At that time, these 7 men represented approximately 25% of the wealth of the entire world!

Each man was told to arrive at the train station in the greatest of secrecy. They were specifically instructed not to see one another on the day and evening of their departure. They were to arrive at different times so that they could enter the station and board the private car, hooked-up at the very end of the train, one at a time and pretend as though they did not know one another.

Each man was also instructed to avoid newspaper reporters at all cost, because if they had been seen together, it would have raised Spockian eyebrows and a lot of questions would have been asked. One of the men even carried a shotgun so that if had been stopped by a reporter his response would be that he was going on a duck hunting trip.

Once on board Aldrich's private railway car, they were told to only use their first names. Under no circumstances were last names to be even mentioned. Some of the "unmagnificant 7" even used code-names. Senator Aldrich was concerned that if the servants were to know who they were serving that evening, there would be a good chance that the information would be leaked to the press.

The 1,000 mile journey to Brunswick Georgia took two and a half days. From there they took a ferry to Jekyll Island, which was completely owned by people such as Rockefeller and J.P. Morgan who would spend the winter months there with their families. Amongst the millionaire owners it was known as "The Jekyll Island Club."

The center of their social activities was The Clubhouse, a magnificent structure surrounded by cottages which were the finest examples of the architecture of the day, some even having as many as 14 bathrooms.

Today, Jekyll Island is owned by the state of Georgia and has been converted into a state park. The Clubhouse has been fully restored and is open to the public.

As you tour this facility, you'll come to a door with a brass plaque which simply says, "In this room the Federal Reserve System was created."

Next Episode - Part 3: I Don't Believe that it Happened!

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

Part 1: Sinister Beginnings

The Federal Reserve System was created by 7 men in 1910 at a highly secret meeting on Jekyll Island, just off the coast of Georgia.

The 7 men were:

1. Senator Nelson Aldrich, Republican whip in the Senate and the chairman of the National Monetary Commission, which was the special committee of Congress created for the purpose of making recommendations to Congress for proposed legislation to reform banking. He was also a key business associate of J.P. Morgan and the father-in-law of John D. Rockefeller.
2. Abraham Andrew, Assistant Secretary of the Treasury.
3. Frank Vanderlip, President of the National City Bank of New York, which at the time was the largest bank in America representing the financial interests of William Rockefeller and the international investment firm of Kuhn, Loeb & Company.
4. Henry Davison, senior partner of J.P. Morgan Company.
5. Charles Norton, President of First National Bank of New York.
6. Benjamin Strong, head of J.P. Morgan's Banker's Trust, and who 3 years later became the first head of the Federal Reserve System.
7. Paul Warburg, the most important player of all. A naturalized American citizen, born in Germany, and one of the wealthiest men in the world. He was a partner in Kuhn, Loeb & Company and also the representative of the Rothschild banking dynasty in England and France. His brother Max Warburg was the head of the Warburg banking consortium in Germany and the Netherlands.

These are the players. Tomorrow in Part 2 of the Federal Reserve series ... Secret Journey.