June 10, 2013 by Jerry Alatalo
Where are the Thomas Jeffersons and the Andrew Jacksons and the William Jennings Bryans of today? Who is willing to risk it all, including their life, to ease the suffering of every man, woman and child on this planet Earth? With the current worldwide financial crisis along with the internet, William Jennings Bryan would be unbeatable if he were running for the presidency today.
Unfortunately Bryan lost to McKinley by a small margin. Before the election workers were warned by businessmen and industrialists that if Bryan won all the plants would be closed and many jobs would be lost. If the internet was around during that time the result of the election would have been Bryan’s election. Fear helped win the election for McKinley. Bryan’s defeat in 1896 was a major victory for the big bankers; by squeezing the life out of the money system, they effectively steered the election process to their ends.
Let us look at some of the words of the bankers before the 1896 election to gain a feel for what was at stake. A bank memo in 1891 from the American Bankers Association to members:
“On September 1, 1894, we will not renew our loans under any consideration. On September 1 we will demand our money. We will foreclose and become mortgagees in possession. We can take two-thirds of the farms west of the Mississippi and thousands of them east of the Mississippi as well, at our own price… Then the farmers will become tenants as in England…”
And a decade later from Charles Lindbergh’s 1913 book “Banking and Currency and the Money Trust” another bank memo:
“Silver, silver certificates, and treasury bonds (all government created money) must be retired and (interest bearing) national bank notes made the only money. You will at once retire one-third of your circulation (your paper money) and call in one-half your loans. Be careful to make a monetary (emergency) among your patrons, especially among influential businessmen. The future of (our debt based money system) depends upon immediate action, as there is an increasing sentiment in favor of government legal-tender notes and silver coinage.”
This is what Bryan was going up against. The effects of the bankers’ actions resulted in the failure of 500 banks and 15,000 companies. As the bankers owned most of the gold it was easy for them to create depressions. The Panic of 1893 was a bank created depression with the unfortunate unemployment, foreclosures and human suffering. As the depression continued, bankers continued buying up the foreclosed farms at pennies on the dollar.
From 1892, United States Bankers magazine:
“We must go forward cautiously and consolidate each acquired position, because already the inferior social stratum of society is giving increasing signs of agitation. Let us make use of the courts… When, through the law’s intervention, the common people shall have lost their homes, they will be easier to control and easier to govern, and they shall not be able to resist the strong hand of the government acting in accordance with… The control of the leaders of finance… We must keep the people busy with practical antagonisms. We’ll therefore speed up the question of reform (of tariffs) within the Democratic Party; and we’ll put the spotlight on the question of protection… (for) the republican party. By dividing the electorate this way, we’ll be able to have them spend their energies at struggling among themselves on questions that, for us, have no importance whatsoever.”
This was what Bryan was up against. Keep in mind there was a bank caused depression during Democratic President Grover Cleveland’s second term, 1893-1897. God only knows the manipulations of the economy which take place. Gas prices somehow seem to skyrocket in an election year. Oil profits increase dramatically while keeping the debate on anything but the most important issues of international finance. Prices rise for some unknown reason, etc. Thank God the manipulations are coming to an end.
After the panic of 1907 the bankers continued with their push for private, central bank control of the monetary system. They decried that “drastic reform is needed”. A central bank would stop the commercial banks’ cycle of boom and bust. The use of propaganda to convince Congress and the American people began as alliances emerged with the media, journalists, economists, intellectuals, historians and social scientists advocating for the central bank. In 1910 the secretive six-man meeting at J.P. Morgan’s Jekyll Island, Georgia resort took place for one week. The six men went on Morgan’s private train under assumed names for a “duck hunting” trip. Rockefeller and Morgan planned the Federal Reserve act.
Democrats won the 1910 elections and the bill was held off for a vote until it was changed in name from the Republican Aldrich bill to the Democrat Glass bill.
The year 1913 saw the landmark enactment of the Federal Reserve act, establishing the Federal Reserve banking system. At the time Minnesota republican Congressman Charles Lindbergh Sr. (1859-1924) was one the leading opponents of the act. He said during this time:
“To cause high prices, all the Federal Reserve board will do will be to lower their discount rate… Producing an expansion of credit and a rising stock market, then when… Businessmen are adjusted to these conditions, it can check… prosperity in mid-career by arbitrarily raising the rate of interest. It can cause the pendulum of a rising and falling market to swing gently back and forth by slight changes in the interest rate, or cause violent fluctuations by a greater rate variation and in either case it will possess inside information as to financial conditions and advance knowledge of the coming change, either up or down. This is the strangest, most dangerous advantage ever placed in the hands of a special privilege class by any government that ever existed. The system is private, conducted for the sole purpose of obtaining the greatest possible profits from the use of other people’s money. They know in advance when to create panics to their advantage. They also know when to stop panics. Inflation and deflation work equally well for them when they control finance.”
Congressman Lindbergh also said:
“This (Federal Reserve Act) establishes the most gigantic trust on Earth. When the President (Woodrow Wilson) signs this bill, the invisible government of the monetary power will be legalized… The worst legislative crime of the ages is perpetrated by this banking and currency bill.”
The Federal Reserve act of 1913, despite objections like Congressman Lindbergh’s passed.
Woodrow Wilson signed the 1913 act into law. Wilson may have expressed regret here:
“A great industrial nation is controlled by its system of credit. Our system of credit is concentrated. The growth of our nation, therefore, and all our activities, are in the hands of a few men… Chill and check and destroy genuine economic freedom…”
From another writing Wilson said:
“We have not one or two or three, but many, established and formidable monopolies in the United States. …We have come to be one of the worst ruled, one of the most completely controlled and dominated governments in the world; 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.”
Perhaps Sigmund Freud explained the reasons why Wilson would sign the Federal Reserve act into law. Sigmund Freud heard the statement attributed to Wilson after winning the election, “Remember that God ordained that I should be the next President of the United States. Neither you or any other mortal or mortals could have prevented this.”
“I do not know how to avoid the conclusion that a man who is capable of taking the illusions of religion so literally and is so sure of a special personal intimacy with the almighty is unfitted for relations with ordinary children of men.”
Whatever the motivations of Woodrow Wilson, his signing of the Federal Reserve Act of 1913 began the private banks’ control over the money supply which, at this time, has lasted 99 years. So began the cycles of boom and bust that have continued to this day where we find between the years 2000-2008, the greatest bank swindle in history.
The problem is that the Federal Reserve is accountable to no-one. It has total control of the monetary system where everything is kept in secret. In 1993 then finance committee chairman Henry Gonzalez called for full, detailed, independent audits of the Fed along with videotaping of their meetings. At the same time Gonzalez called for selection of the 12 regional bank governors be done by the President as opposed to the banks in the regions. Bill Clinton opposed, saying: “…would undermine market confidence.” How would market/public confidence be undermined?
The Federal Reserve is an absolute oligarchy. Fed chair Greenspan said, “…that any changes would weaken the Fed’s ability to control inflation. The public needs absolute control by the Fed to control inflation. …makes it harder to control inflation if President appoints…”
Although the bankers call themselves the “fiercest of inflation hawks…” the truth is that they are the cause of inflation. The fractional reserve banking system increases the money supply through banks creating money out of thin air. Let us say that hometown bank has $10,000,000 in deposits and it has a 10% reserve requirement. They then can loan ten times their deposits or $100,000,000. This is how money comes to be created; as debt. Increase in the money supply causes inflation. Banks earn their profits from interest payments on loans, credit cards etc. So why would they want to slow inflation by lowering their lending?
Fractional reserve banking could almost be called counterfeiting. The original counterfeiters (owners of the banks) would gain the most as they are the first recipients. Then a decreasing gain goes to retailers, to a decreasing gain down the line, to the least gain for those at the end of the money line (the average citizen). Inflation hits the hardest on those with the least. Part of the blame for inflation is on speculators and wild spenders; part of the blame is on the central banks responsible for inflation and rising prices.
The fractional reserve system is fraudulent. All of society and the economies of countries around the world suffer harm. Inflation results in devastating booms and busts. Everything economic is “great” as the boom/bubble expands. People see their 401k accounts and pensions increase. Then the inevitable bursting of the bubble and everything is not so great anymore. The banks call in loans, the money supply is contracted, credit becomes tighter and recessions are the result.
The present Federal Reserve system is nothing more than a financial cartel. Through history the financial élite have spent enormous sums to first gain control of the monetary system and second to keep that control. The interests of the Federal Reserve are not of the public, but for the financial interests of those involved in the financial industry and corporations. The Fed has a monopoly on the issue of bank notes. It buys assets and prints legal tender.
Say it buys $1 billion in U.S. Government bonds from Goldman-Sachs. The Fed writes a check for $1 billion to Goldman-Sachs and Goldman-Sachs deposits the check. Where did the Fed’s $1 billion come from? It was magically created out of thin air. One billion dollars has now been added to the money supply, Goldman-Sachs’ bank can now lend $10 billion out to customers under the fractional reserve system. So $11 billion, in this example, has been added to the money supply. The Fed is the so-called lender of last resort; it has the power to print money if the public demands cash from insolvent banks. If it buys assets the money supply increases; if it sells assets the money supply shrinks.
We cannot rely on the Federal Reserve to stop inflation; their actions always result in inflation along with ever more intense, damaging booms and busts. The Federal Reserve is in total control of the economy and it serves the rich élite. It can instigate recessions and depressions, thereby keeping unemployment levels up. Did anyone notice at the end of the George Bush term where Bush, Hank Paulson and Ben Bernanke were everywhere on the media saying that unless Congress bailed out the banks the economy would collapse?
Those with only a minimum of economic knowledge would never have advertised such negative economic news to the entire world. We saw the results of that world-wide negative news with the choices of the people to slow their spending which made the economic conditions even worse. It makes you wonder if the advertising of the negative news was intentional.
Nationalize the Federal Reserve. Remove the power of the banks to create money by ending the fractional reserve system. Go to 100% reserve requirements. Money should be controlled by the people and created by the government through infrastructure spending. Set up a monetary authority to watch inflation by controlling the money supply. Increase the money supply through expenditures on health care, education and infrastructure improvements. Take the power to control the quantity of the money supply away from private interests who only use that control to help private interests. There is no need for any type of gold or silver or any other metallic standard. Fiat money is not the problem; the real problem lies in the private control and creation of fiat money.
Banks will get their money/deposits as the government spends that money into circulation. The financial élite will oppose any effort to pass laws which restrict them in any way. They will oppose any type of regulations which prohibit them their freedom to commit frauds. They will say that if you do what the markets want that you will get your rewards. If you do what the markets do not want you will suffer. Can anyone reading these words not see where the present monetary system has led?
It has led to a worldwide economic disaster. Change is long overdue. The present financial system with its complex products such as credit default swaps, derivatives and the like is a predatory one. Those economists who defend this predatory system receive their paychecks from these same predators. Small, ineffective tweaks which fix nothing are what they suggest. The power of this predatory system, now in the hands of the predators that run it, has to be taken away.
The United States of America has to reform its monetary policy now. The country’s citizens deserve a system which has sound banking practices without the tremendous fraud and criminality now practiced. It is impossible to do a worse job with monetary policy than the private banks have done. People will say that the government taking control of the nation’s money supply would be socialism.
Talk to the members of the armed services, police and fire agencies along with teachers about socialism. These men and women perform essential services for our citizens. Those who would work at the government monetary office would perform essential services as well. They would not go into this work so as to make a killing and buy a jet and ten vacation homes. They would be doing a valuable service to not only their country’s citizens but the citizens of the world as well.
Those who cry socialism are using scare tactics so as to keep their monopoly power. Do not allow propaganda from the financial elites to stop you from seriously considering what is at stake here. The private banks bailouts to cover their frauds and gambling of epic proportions were given to those who engaged in massive criminality. This is fact. The top 25 banks on this planet have brought down the entire world. The stakes could not be higher. The citizens of other countries cannot believe how uninformed our citizens are. The American people must look and act on these issues with the same Spirit that those Americans in 1776 exhibited when they threw off the economic slavery of England.
Americans must gather the courage to demand no less than the passage of laws which establish a monetary reform which helps our citizens and humanity. Monetary reform is of the utmost importance; there is no more important issue facing humanity. Those who want to keep the present system will use psychological warfare by saying things like, “government is too corrupt” and “nothing you can do will matter.”
The financial elites are aware of the cause of these problems. The present monetary system contains the evils of greed and lack of concern for humanity. The American people must face these evils and defeat them. It is long past the time that the American people and the rest of humanity are given respect and treated with decency.
The people of America and the world must become very informed and very active. Under the present monetary systems of the majority of the world’s countries, all money is a pyramid of debt. These problems are political, societal and moral. All money that comes into circulation within the current monetary system is birthed as debt.
Inventor Thomas Edison (1847-1931) said in 1921:
“If our nation can issue a dollar bond, it can issue a dollar bill. The element that makes the bond good, makes the bill good also. The difference between the bond and the bill is the bond lets money brokers collect twice the amount of the bond and an additional 20%, whereas the currency pays nobody but those who contribute directly in some useful way. It is absurd to say that our country can issue $30 million in bonds and not make $30 million in currency. Both are promises to pay but one promise fattens the usurers and the other helps the people.”