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

Episode 6: The Plan, Part 2

Step 2 of the Plan was to sell the concept to the American public.

The first draft of the Federal Reserve Act, when presented to Congress, was sponsored by Nelson Aldrich and was called the Aldrich Bill.

Paul Warburg had cautioned Aldrich not to sponsor the bill because Warburg felt that Aldrich was too closely identified with big business and that Congress would vote the bill down. Warburg was right. The bill in its presented form died on the floor.

The Unholy 7 took the bill back, moved some of the paragraphs around, and removed Aldrich's name. They found two Democrats, Carter Glass in the House and Senator Robert Owen, himself a banker, to sponsor what would be called the Glass-Owen bill.

Aldrich and Vanderlip then began to give speeches and interviews to newspaper reporters condemning the bill as "ruinous to banking and terrible for the country." By the time the average guy on the street read Aldrich and Vanderlip's comments, the thinking amongst America became, that the Glass-Owen bill must be a good thing because the big bankers were opposed to it. Another brilliant strategy!

Meanwhile back at the ranch, the Unholy 7 were digging ever deeper into their bag of deceptive tricks. They began paying the costs of creating "grassroots study clubs" across the country. They sponsored these clubs, held public meetings and printed brochures and pamphlets extoling the virtues of the Federal Reserve System.

They gave large sums of money to some of the more prestigious universities in America to create new departments of economics. They hand picked their own people to be professors to head up these departments, who then in turn, gave speeches and wrote essays promoting the wisdom and benefits of the Fed.

Paul Warburg then further toned-down the Glass-Owen bill because he felt that the new legislation had to be palatable to as many people in government as possible. In his opinion this was the crucial time during which the boat of common sense could not be rocked.

The other members of his group were upset because they felt that Warburg's toned down legislation was giving up too much of the power and control which the bankers were seeking. Warburg's rationale was elegantly simple. The main objective was not to try to get everything which they had wanted coming straight out of the gate for that would not be possible. Rather it was Warburg's strategy to get the bill passed into law first, then "fix it up later to their liking."

Since the Federal Reserve Act has been passed it has been ammended over 100 times with each amendment greatly expanding the power and reach of the Fed.

The last hold-out against the bill was William Jennings Bryan, the head of the Populist Movement, who was deeply concerned that the bill would ruin the nations money supply. But when he saw Paul Warburg's watered-down version of the bill, Bryan supported the bill never dreaming that once the bill was passed it would be continuously amended.

The Unholy 7 were masters at their game. They understood people, politics and mass psychology. And they played each card perfectly.

Popular support was finally gained for the bill and on December 22, 1913 the bill was passed by Congress and the following day was signed into law by President Wilson.

The Federal Reserve had won the battle and America was now its prize!

Next - Episode 7: How the Fed Works.

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

Episode 5: The Plan

In the years prior to the Fed a lot of banks were folding. People were losing their money and investments. There were runs on the banks and the banks would not give people their money back.

In particular, people were extremely concerned about what was refered to as the "money trust" or the concentration of incredible wealth in the hands of a few large banks on Wall Street.

For politicians the "money trust" represented a golden opportunity. If they campaigned against it chances were good that they would be elected.

Enter President Wilson. He campaigned hard against the "money trust." Problem was that he was "hand-picked" by the "money trust." He was financed by the "money trust." All of his key advisors and political cronies were part of the "money trust," and at the end of the day he sold out America. Who says that you can't buy yourself a President?

He didn't sell-out to the old "money trust" but rather to the new "money trust." For in 1913 after senator Nelson Aldrich, maternal grandfather to the Rockefellers and one of the unholy 7, pushed the Federal Reserce Act through Congress just before Christmas when much of Congress was on vacation, President Wilson passed the Fed into reality.

Later President Wilson was to remorsefully say, "I have unwittingly ruined my country!"

Now here is the plan which created the Fed. The unholy 7 wanted to create a central banking system in America. It's an ingenious concept that was created in Europe in the 16th century and perfected with the formation of the Bank of England in 1694. Later in this series I'll explain just how central banking works and why it is so dangerous. But suffice it to say for now that under a central banking system it is the bankers and the government who "own your butts" lock, stock, and barrel.

The main problem that the unholy 7 faced on Jekyll Island was what should they call the Central Banks so that nobody knew that it was a Central bank. Congress was already on record as saying that they did not want a central bank in America.

This is why Paul Warburg was so valuable, because he had the detailed technical knowledge of how central banks operate and hence had the expertise to strategize and guide the project to a successful conclusion.

The first step in their strategy was to give central banking a new name...The Federal Reserve System. Federal ... because it sounded like it was the government and not a cartel of powerful bankers. Reserve ... because it sounded like there were reserves of somekind. And System ... the most important word of all. Remember that people were upset about the "money trust", the concentration of financial power in New York. The word System was specifically chosen to sell the impression that under this new "bank reform" a system of regional banks would diffuse the power of the big banks on Wall Street.

But at the end of the day, it was to be the bankers and not the United States government which would issue and control America's money supply.

There was no federal component. There were no reserves. There was no system for the difusion of financial power on Wall Street and the Federal Reserve Banks were not even banks. A totally brilliant strategy.

Next- Episode 6: The Plan Part 2

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.