Once upon a time, in 1913, a corrupt Congress and a corrupt President transferred the money creation authority vested in the government by the Constitution to a private central bank. It was going to be called the Third Bank of the United States. Such a fundamental change to the nation’s economy should have required a Constitutional Amendment. But earlier that same year, there had been a huge fight to ratify another Amendment, the 16th Amendment authorizing the income tax, and there is good reason to suspect that the 16th Amendment actually failed ratification even though the payers of that income tax were told otherwise.
I think if you were to go back and try to find and review the ratification of the 16th amendment, which was the internal revenue, the income tax, I think if you went back and examined that carefully, you would find that a sufficient number of states never ratified that amendment.
– U.S. District Court Judge James C. Fox, Sullivan Vs. United States, 2003.
Getting yet another Amendment ratified against such opposition, or worse, having to cheat one through, would be extremely difficult.
Then there was a problem with the proposed name, “Third Bank of the United States”, as it reminded people of the predations of the First and Second Bank of the United States.
Gentlemen! I too have been a close observer of the doings of the Bank of the United States. I have had men watching you for a long time, and am convinced that you have used the funds of the bank to speculate in the breadstuffs of the country. When you won, you divided the profits amongst you, and when you lost, you charged it to the bank. You tell me that if I take the deposits from the bank and annul its charter I shall ruin ten thousand families. That may be true, gentlemen, but that is your sin! Should I let you go on, you will ruin fifty thousand families, and that would be my sin! You are a den of vipers and thieves. I have determined to rout you out, and by the Eternal, (bringing his fist down on the table) I will rout you out!
— Andrew Jackson, shortly before ending the charter of the Second Bank of the United States. From the original minutes of the Philadelphia committee of citizens sent to meet with President Jackson (February 1834), according to Andrew Jackson and the Bank of the United States (1928) by Stan V. Henkels
Shortly after President Jackson (the only American President to actually pay off the National Debt) ended the Second Bank of the United States, there was an attempted assassination.
But I digress.
Faced with the possibility that a new Amendment to transfer money creation from the US Government to a privately owned bank might fail and fail badly, and with the name “Third Bank of the United States” already leading to opposition to the plan, the plotters did an end run around the Constitution, passing the federal Reserve act over Christmas vacation when the members of Congress opposed to the bill would be away. The name of the new bank was then changed to “The Federal Reserve.” But, it is a private bank, no more “Federal” than Federal Express. From that moment on all currency would enter circulation as a loan at interest.
I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation is now controlled by its system of credit.We are no longer a government by free opinion, no longer a government by conviction and the vote of the majority, but a government by the opinion and duress of a small group of dominant men.
— Woodrow Wilson 1919
Ironically enough, this was the very system of banking the American Revolution was fought to free us from.
The refusal of King George 3rd to allow the colonies to operate an honest money system, which freed the ordinary man from the clutches of the money manipulators, was probably the prime cause of the revolution.
— Benjamin Franklin, Founding Father
Starting in 1913, public schools stopped teaching about King George’s Currency Act, which ordered the American colonies to conduct business only using bank notes borrowed at interest from the Bank of England, and since then American students are taught that the revolution was about Tea Parties and Stamp Acts, lest the more clever students wonder how we ended up back in the same banking system that led to the first revolution.
The Founding Fathers understood how dangerous such banking systems are, and I will try to teach you here what the public schools are forbidden to let you know. The Federal Reserve system is a deliberate trap, to enslave a population to unpayable debt in order to control and exploit them, and here is how it works.
Before any commerce can happen, currency must go into circulation. Someone has to borrow it from that private central bank. The borrower can be government, a business, another bank, or ordinary citizens using credit cards, car loans, or mortgages. For the purposes of clarity, we will use a single dollar to represent that initial borrowing from the central bank. For the purpose of this illustration, “borrower” refers collectively to the entire American nation.
That dollar now enters circulation, passing from the original borrower to others, as payment for labor, in exchange for raw materials, as taxes, and so forth. Round and round it goes, passing from hand to hand, yet it is still a note borrowed from the Central Bank and it is still accruing interest. That Central Bank note, or (in the United States) Federal Reserve Note, is not a unit of value, it is a unit of debt.
At some point, that dollar is repaid to the Central Bank. The Central Bank then demands the interest. In our case, a nickle. But there is a problem. That nickle doesn’t exist and it never did. It is imaginary.
So now the borrower has to borrow another dollar, out of which he takes a nickle to pay for the interest on the first dollar.
The rest of that second borrowed dollar now goes into circulation, but this time, only 95 cents is in circulation to pass from borrower to vendor to employee to grocery store to government, then back to the Central Bank.
The borrower goes back to the Central Bank to repay that second dollar, but only has 95 cents, plus he owes that imaginary five cents interest as well, or ten cents.
Once more the borrower has to borrow a new dollar from the Central Bank, only this time he has to take a dime out of that new dollar to hand bank to the banker. The borrower walks out of the bank with only 90 cents to put into circulation, while still owing a whole dollar plus five cents interest.
The cycle keeps repeating over and over with each new loan having to return more and more back to the Central bank as accumulated interest.
With each cycle the Central Banks gets richer while there is less and less currency available for commerce. People have to tighten their belts. Works are let go. Sales slow down. “Austerity” is imposed.
Eventually, a point is reached where as much accumulated interest is owed as the money being borrowed. So the borrower now has to borrow twice as much from the Central Bank merely to have the same actual currency in circulation as when they started. The Central Bank system only operates as long as the borrower is willing to go deeper and deeper into debt, and debt slavery. This is what makes the Central Bank scheme a pyramid system. It works only so long as ever-larger new generations of borrowers can be found to allow new currency to enter circulation, out of which the interest on the older loans is paid. And of course, by design, the debt can never ever be paid off. Once that first paper note is loaned into circulation, total debt will always exceed total currency. The system is designed that way, to keep you in debt, to keep you a slave to the bankers.
This is the reason that every nation on Earth with such a Central Bank is now drowning in debt. The Federal Reserve, the World Bank, the International Monetary Fund, the European Central Bank, are all built on this same system. This is why nations that refuse such banking systems are made war on.
Either the application for renewal of the charter is granted, or the United States will find itself involved in a most disastrous war.
— Nathan Mayor Rothschild, angered at the refusal of Congress to renew the charter for the First Bank of the United States in 1811. Congress stood firm and Britain, goaded to “recolonize” America by the Bank of England, headed at the time by Lionel de Rothschild, launched the war of 1812.
If this mischievous financial policy, which has its origin in North America, shall become endurated down to a fixture, then that Government will furnish its own money without cost. It will pay off debts and be without debt. It will have all the money necessary to carry on its commerce. It will become prosperous without precedent in the history of the world. The brains, and wealth of all countries will go to North America. That country must be destroyed or it will destroy every monarchy on the globe.
— The London Times responding to Lincoln’s decision to issue government Greenbacks to finance the Civil War, rather that agree to private banker’s loans at 30% interest. Following Lincoln’s assassination, the Greenbacks were taken out of circulation.
On June 4, 1963, President John F. Kennedy signed Executive Order 11110, which authorized the US Treasury to issue United States Notes, backed by silver, so that the American people would not have to borrow federal Reserve Notes at interest. Five months later Kennedy was assassinated in Dallas Texas, the US Notes were taken out of circulation, and John J. McCloy, President of the Chase Manhattan Bank, and President of the World Bank, was named to the Warren Commission, presumably to make certain the financial dimensions behind the assassination were never made public.
And what did it cost the Central Banks to wield such power over nations? Paper and ink, or today a few keystrokes on a keyboard. In fact the practices of the Central Bank would be felonies under the United States Coinage Act of 1972, which declared debasement of the gold and silver-backed currency of the United States a death penalty offence.
The Central Bank knows that those pieces of paper with ink are worthless. But while the Central Bank can just create those paper notes out of thin air (legalized counterfeiting), you may not. In order to pay that ever-growing debt you have to do what you are told to do by those who have some of those pieces of paper to hand out tell you to do. Work long hours. Invade a foreign nation that refuses to have a Private Central Bank. Torture innocent people to death to find weapons of mass destruction that do not exist to justify a war. Compromise your morals and integrity. Perform sexual favors. Whatever the purveyors of those pieces of paper want, you must do. That paper note is your slave chain.
And that is what it is all about. Control. Rule by artificially created debt. No different from other hoaxes played by the rich on the poor, such as Rule by Divine Right, or Rule by Chattel Ownership of your Body (slavery). As a human civilization we have outgrown these hoaxes and realize they are illegitimate forms of governance. So too shall it be with Rule by Debt. Those previous systems only worked as long as the subjugated population believed that those systems were real; the way the world was supposed to be. When the people broke free of the slavery of belief, those forms of enslavement collapsed.
Modern banking is not a science. It is a religion, simply a set of arbitrary rules and assumptions that favor the masters of that belief system, which we are brain washed in school to think is something tangible and real.
We have outgrown Rule by Divine Right and recognize slavery as inherently wrong.
Now is the time for the next step in our societies evolution in which the money must serve the people, rather than the people serve the money.
Central Banks are a failed experiment. Look at the devastation of Europe, or your own home town and you will see it.
The common enemy of all humankind are Private Central Banks issuing the public currency as a loan at interest.