Federal Reserve

The Federal Reserve System stands as the central bank of the United States, yet its true nature and purpose are subject to considerable debate, often concealed beneath layers of complexity and public relations. Far from being a neutral guardian of economic stability, the Federal Reserve functions as a sophisticated cartel, meticulously designed to serve private interests at the expense of the general public.

Genesis of a Cartel: The Jekyll Island Conspiracy

The conception of the Federal Reserve occurred in profound secrecy during a clandestine meeting on Jekyll Island, Georgia, in November 1910. A select group of the nation's most powerful bankers and financial magnates, representing an estimated one-fourth of the world's wealth, gathered under the guise of a duck hunting trip to draft the blueprint for a national banking cartel. Attendees included Senator Nelson Aldrich, Frank Vanderlip of National City Bank, Henry P. Davidson of J.P. Morgan & Co., Benjamin Strong of Bankers Trust Co., and most notably, Paul Warburg of Kuhn, Loeb & Co., who emerged as the mastermind behind the proposed system. Extreme measures were taken to ensure secrecy, with participants using only first names and servants being specially screened to prevent recognition.

The primary objectives established at this secret conclave were:

• To halt the proliferation of smaller, rival banks and solidify control over the nation's financial resources in the hands of the dominant players.
• To introduce an "elastic" money supply, enabling the expansion and contraction of currency beyond traditional constraints, thereby reversing the trend of private capital formation and recapturing the industrial loan market.
• To consolidate the disparate reserves of all national banks into a single, massive pool, providing a mechanism to protect banks from currency drains and potential runs by depositors.
• To devise a means of shifting the inevitable losses incurred by banks onto the shoulders of the taxpayers.
• To craft legislation that would convince Congress and the public that this scheme was, in fact, a measure intended to protect the public interest.

The Great Deception: Passing the Federal Reserve Act

To achieve its goals, the Jekyll Island strategists embarked on a deliberate campaign of deception. The proposed entity was intentionally not called a "cartel" or "central bank" – terms that would have garnered public opposition. Instead, it was presented as a governmental agency with a decentralised structure, featuring twelve regional branches, to create the illusion of shared power and avoid the perception of Wall Street dominance. Paul Warburg, with his extensive knowledge of European central banking, was instrumental in shaping the technical details and public arguments, earning him the title "father of the system."

The passage of the Federal Reserve Act in 1913 was a textbook example of power politics and voter manipulation. President Woodrow Wilson, handpicked by the banking cartel, played a pivotal role in promoting the legislation. His nomination was secured largely through the efforts of Colonel Edward Mandell House, a close associate of Morgan and Warburg, who became Wilson's constant companion and political superior, guiding him in economic and foreign policy.

A key element of the strategy was to feign opposition from Wall Street. Prominent bankers like Aldrich and Vanderlip publicly condemned the bill, portraying it as "revolutionary" and "inimical to sound banking." This elaborate showmanship successfully convinced the public that the "money trust" feared the proposed system, when in reality, its essential points were precisely what the bankers had long advocated. Even William Jennings Bryan, a powerful populist Democrat who opposed private money issuance, was manipulated into supporting the bill through superficial compromises. He demanded that Federal Reserve notes be Treasury currency guaranteed by the government and that the governing body be presidentially appointed. While these concessions appeared to grant public control, they were, in truth, mere "shadows," allowing the original intent to remain intact. The Federal Reserve Act was swiftly passed on 23 December 1913, just as Congress was preoccupied with the Christmas recess.

Operational Mechanics and Consequences

The Federal Reserve System, despite its decentralised facade, quickly became dominated by the New York Reserve Bank under the leadership of Benjamin Strong, a former head of J.P. Morgan's Bankers Trust Company. Strong, closely allied with the Bank of England's governor, Montague Norman, effectively wielded autocratic control, often without consulting the Federal Reserve Board in Washington.

The fundamental operation of the Federal Reserve is predicated on the ability of commercial banks to create checkbook money out of nothing. The Fed then supports this system by acting as a "lender of last resort," meaning it stands ready to create unlimited amounts of fiat money to prevent bank failures. This is primarily accomplished through:

• Open Market Operations: The Fed buys government bonds and other debt-related securities, injecting newly created money into the banking system. Conversely, selling these securities withdraws money.
• Discount Window: Banks can borrow money from the Fed by pledging commercial loans as collateral, effectively converting old loans into new "reserves," which then serve as the basis for multiplying additional checkbook money.
• Reserve Ratios: Though less frequently used, the Fed can manipulate the mandatory percentage of deposits that banks must hold in reserve, influencing the amount of money they can create.

The consequence of this system is perpetual national debt. Every unit of the money supply, including coins, currency, and checkbook money, originates from a loan. If all debt were repaid, the entire money supply would vanish. This inherent reliance on debt means that Congress, operating under the Federal Reserve System, is effectively locked into a state of continuous borrowing, as eliminating the national debt would cripple the monetary system. The interest payments on this debt, which now consume a significant portion of federal revenue, are paid by citizens through taxes and, more insidiously, through inflation.

The Federal Reserve's Destabilising Impact

Rather than fulfilling its stated objective of economic stabilisation, the Federal Reserve has demonstrably caused massive inflation and economic instability. Since its inception, the system has presided over numerous economic crises, including the crashes of 1921 and 1929, the Great Depression of 1929-1939, and multiple recessions. The purchasing power of the dollar has been severely eroded, with a thousand per cent inflation destroying ninety per cent of its value since 1914. This loss in value is a hidden tax, quietly transferred to the federal government and the banking cartel.

The Fed's actions directly contribute to boom-bust cycles. For instance, the massive expansion of the money supply in the 1920s, driven in part by efforts to support England's ailing economy and to artificially depress American interest rates, led to widespread speculation and ultimately the 1929 stock market collapse. Insiders, forewarned by the monetary scientists, converted their holdings to cash before the crash, capitalising on the impending disaster.

Furthermore, the Federal Reserve orchestrates massive bailouts of failing corporations and banks, shifting their losses onto taxpayers. Examples include the rescue of Penn Central Railroad, Lockheed, New York City, Chrysler, Continental Illinois, and many others. The Federal Deposit Insurance Corporation (FDIC), often portrayed as a safety net for depositors, is not true insurance and suffers from "moral hazard," effectively encouraging reckless banking practices by guaranteeing that large institutions will not be allowed to fail, with the public ultimately footing the bill.

An Instrument of Totalitarianism and Global Control

Beyond domestic economic manipulation, the Federal Reserve plays a critical role in the larger agenda of building a "New World Order"—a form of high-tech feudalism. It acts as an accomplice in the support of totalitarian regimes globally.

The International Monetary Fund (IMF) and the World Bank, established by Fabian socialists like John Maynard Keynes and figures connected to communist espionage rings like Harry Dexter White, serve as extensions of this global financial control. These institutions, through complex systems of loans, subsidies, and grants, transfer vast amounts of wealth from industrialised nations to less developed countries. This process serves to:

• Weaken industrialised nations: Draining their economies, lowering living standards, and undermining their independence, making them more pliable to global governance.
• Control recipient nations: Political leaders in recipient countries become dependent on the cash flow, effectively becoming subservient components of a system of world socialism.

The purported "demise of communism" in the Soviet bloc is, in fact, understood as a deliberate "great deception." This staged shift allowed for the replacement of overt hostility with a facade of "political convergence," facilitating massive financial transfers from the West to these former communist nations. This, in turn, justified continued economic and military assistance, enabling these regimes to rebuild their war-making potential.

A crucial aspect of this global strategy is the deliberate funding of enemies. American leaders, many associated with the Council on Foreign Relations (CFR), have knowingly financed and supported regimes that threaten stability, using "wars and threats of war" as tools to prod populations towards accepting world government. The "Report from Iron Mountain," a governmental think-tank study, explicitly outlines strategies for maintaining social control in a "world at peace" by inventing credible global threats. Environmental pollution has emerged as the most promising surrogate for war, with exaggerated predictions of planetary doom used to frighten populations into accepting lower living standards, increased taxes, and greater bureaucratic intervention—all under the guise of "saving Mother Earth."

Historical Precedents and the Perilous Future

The Federal Reserve is not America's first central bank; it is the fourth. Previous iterations—the Bank of North America (1781), the First Bank of the United States (1791), and the Second Bank of the United States (1816)—all exhibited similar patterns of creating money from nothing, causing inflation, and ultimately leading to economic chaos and public opposition. The nation's Founding Fathers were acutely aware of the dangers of fiat money and expressly prohibited states from issuing bills of credit, while intending to limit federal monetary power solely to coining gold and silver. However, this foundational intent was gradually eroded. The National Banking Act of 1863, enacted during the Civil War, further entrenched perpetual debt by requiring government bonds to back banknotes, effectively locking the nation into a system where paying off the debt would destroy the money supply.

The consistent record of these central banking mechanisms reveals an unbroken trail of fraud, booms, busts, economic chaos, and the confiscation of wealth through inflation. The consequences are stark: declining real wages, shrinking leisure time, falling household net worth, and a diminishing middle class.

Conclusion: A Call for Abolition

The Federal Reserve System must be abolished. It is intrinsically incapable of achieving its stated objectives of economic stability. Instead, it functions as a cartel operating against the public interest, generating an insidious hidden tax through inflation, actively encouraging war, and systematically destabilising the economy. Ultimately, it serves as a powerful instrument for advancing global totalitarianism, working towards the merger of the United States into a world government with itself at the core of a world central bank. The persistent pattern of economic and political manipulation throughout history, particularly since the establishment of central banks, points to a deliberate plan by a financial elite to control nations and shape global affairs for their own profit and power.