The people and events that shape today’s federal reserve monetary system Part I
This section will look at the creation of the Federal Reserve System and the individuals and events that shaped the monetary system today. Before we begin, we need to answer a simple question, “What is the Federal Reserve System?” The answer may surprise you, because it is not federal and there is no reserve. The Federal Reserve banks are not even banks. They are private entities designed and directed to maintain and control U.S. monetary policy.
How did the Federal Reserve system come to be? That answer needs to look back in time. Geckel Island in Georgia was the residence of a secret meeting of the elite and at this meeting plans were made to create a federal reserve system. With the birth of a banking cartel, the strategy was to hand over the power of the purse to Congress to the Federal Reserve and to convince the public that it was a government agency (when it did not exist and still does not exist). Here is a look at some of the people involved in that meeting.
In 1910, Nelson Aldrich, a senator from Rhode Island, one of the most powerful men in the Senate, and in Washington DC he was considered the spokesman for big business and frequently visited Wall Street. He was an associate of JPMorgan and had extensive holdings in banking, manufacturing and public utilities. His son-in-law was John D. Rockefeller, Jr.. During that meeting, he spent time with a number of other dignitaries, including:
- Abraham Piat Andrew – Assistant Secretary of the Treasury of the United States
- Frank A. Vanderleep – President of the National City Bank of New York
- Henry P. Davison – JP Morgan’s senior partner
- Charles D. Norton – President of JPMorgan’s first National Bank in New York
- Benjamin Strong – Head of JPMorgan’s Bankers Trust Company
- Paul M. Warburg – Cohen, partner of Loeb & Co. (representative of the Rothschild banking dynasty in France and England)
According to G. Edward Griffin’s book “The Creature from Jekyll Island,” the purpose of the meeting was to concentrate wealth among the elite, as up to 25% of the world’s wealth resides among members of the elite Jekyll Island Club. In the United States, the two main centers of control And the Rockefeller Group. Within each group, there was a division of commercial banks, investment firms, and acceptance banks. “
The structure of this club was entirely a textbook cartel. A cartel is a group of independent businesses that coordinate the production, pricing, and marketing of their members. The purpose of a cartel is to suppress competition and increase profitability. Thus exerting an exclusive dominance over their shared interests, this cartel of bankers was grouped to ensure that their assets and subsequent abilities could not be tested.
According to The Creature from Jekyll Island, “In 1910, the number of banks grew rapidly and so did competition; Thus, the exclusive rights of the established cartel, which were managed by Morgans, Rothschilds and other prominent bankers, were threatened. By 1913, non-national banks made up 71% of the market and had 57% of deposits. It was a trend that the cartel did not like and needed a reversal. ”
Therefore, the cartels met to discuss plans to re-establish their exclusive possession that they had lost, and to address the challenges they faced.
They identified ways:
- Stop the growing influence of small, rival banks and ensure that control over the country’s financial resources remains in the hands of the Jekyll Island Club.
- Elaborate money supply to reverse the trend of private capital formation and to restore the debt market.
- Pull the reserves of the banks of the country into a large reserve so that all the big banks will follow.
- The point is to blame on the taxpayers if at any time the financial system collapses and the losses of the taxpayers are transferred from the bank owners.
- Find a way to convince Congress that it was in the best interests of the people.
At the time, the American public was skeptical of a cartel, knowing that over the years, these same parties wanted to maintain influence in all aspects of the revolutionary war. The group knew that using the literal words “cartel” and “bank” would turn the public against them. Warburg, who had extensive knowledge and for this reason, became an influential force within the group, came up with the term “Federal Reserve System” and he would later work with Senator Aldrich to draft the Federal Reserve Act of 1913.
This brief overview of history shows the flaws of our current system. Where we are no longer sovereign, we mean neither sovereign nor our nation. We are under a cartel of bankers who want to use our money against us and, for surveillance, restrict access to our conversations and information. Cartels exist only to secure their assets, and all the time taxpayers rely on bills to keep these bankers afloat. 1971 was the final nail in the coffin, giving the Federal Reserve system the power to print money and to do so without compromising the value of gold. There has never been and never will be an audit of the Federal Reserve.
After the market crash in 2008, taxpayers were blamed for lending errors to large banks that were “too big to fail”. It has set a precedent that now whenever a financial crisis strikes, it is not the taxpayers but the bankers who will bear the bill.
Subsequently, in 2008, Satoshi Nakamoto issued the Bitcoin White Paper. It was a pushback on the cartel and they knew it.
The central banking system will push back those who hold bitcoin and they are going to lobby the politicians they control to ensure that their power and their assets are not protected. In their game we are pawns; But Bitcoin gives us the strength to push behind this establishment, and it gives us hope to endure what is going to happen in front of us. This financial institution will not hand over the keys to the fortress in peace: we must stand firm in our policy and do what we can to ensure a future that embraces not only ourselves, our money and the sovereignty of our nation.
Griffin, GE (2010). “Animals from Jekyll Island: A Second Look at the Federal Reserve” American Media.
This is a guest post by Shill Scale. The opinions expressed are entirely their own and not necessarily those of BTC, Inc. Or does not reflect its views Bitcoin Magazine.