| Published: 21st. June 2008 |
Jubilee 2012
The Federal Reserve System
1. The next generation of Rothschilds and the creation of the US Federal Reserve Banks.Leopold and Nathaniel Rothschild were the next generation of the family to take charge of the family fortune. Their forte, like their forefathers, was banking.
Since their predecessors had already conquered Europe and set their eyes on America, this new generation didn't waste any time and set about continuing the family tradition.
The US congress was in charge of issuing money in America. For the Rothschilds to take control of America's banking and money system meant they had to outsmart Congress. They sent Jacob Schiff, their trusted life-long friend and neighbor from Frankfurt Germany to New York City and put him in charge of their front company called Kuhn and Loeb. Then they ganged up with other big players, by investing in Rockefeller Oil, Harriman Railroads, Carnegie Steel and Brown Brothers investment banking. By 1901, the Rothschilds had amassed $22.2 bn worth of US assets.
The mayor of New York, John Highland, called them the invisible government. While Congressman Louis McFadden called them a dark crew of financial pirates who would slit a man's throat to get a dollar. When Woodrow Wilson became president of the United States in 1912, he sold-out America. Wilson was backed by Jacob Schiff and Paul Warburg, who worked in the United States as German immigrant agents for the Rothschilds. In 1913, Paul Warburg re-wrote the US money rules with the help of Senator Aldridge. They called the new rules the Federal Reserve Act. With President Woodrow Wilson's blessing, the privately owned central bank called the US Federal Reserve Bank, was created, and was free of government control.
The pirates divvied-up the private stock in America's money supply and made Rothschild agent Paul Warburg head of the US Federal Reserve. To collect the interest on the money they lent to the American government and American people to use, they created the US federal Income act, to directly tax the people. With the stroke of President Wilson's treasonous pen, the international bankers became the FED in 1913 and have owned a virtual monopoly of the US economy and the tax-payer's money ever since. They create money out of nothing, control treasury loans, and profit from interest rates.
Since their biggest windfalls come from loan profits and weapons sales, wars and death are not only profitable, they are desirable and necessary.
The roaring twenties was a decade of peace and prosperity in the United States. Higher-purchase installment-plans were created to make buying high-priced items more affordable. Instead of shelling-out $100 for a new washing machine, consumers would put $5 down and pay $8 a month. The dangers of debt and high interest rates didn't enter the minds of most Americans, and shopping raged throughout the decade. Advertising became part of the fabric of American culture as ads dominated newspapers and magazines. Sex appeal, social snobbery, outrageous claims and fabricated scientific studies convinced consumers to buy more.
With massive corporate growth, high employment and a post-war bull-market on Wall Street, first time American investors went on a stock-market buying spree.
Everyone wanted a piece of this prosperity. People bought stock on margin or credit for as little as 10% down. They then used the stock as collateral to borrow more money to buy more stock. Then they did it again. The market was a free-for-all.
Although everything looked rosy, it was a castle made of sand and the party ended on October 29th. 1929 when the stock market crashed and caught everyone off guard. Everyone except the insiders that is.
In April of 1929, Paul Warburg, the father of the Fed, sent out a secret advisory warning his friends that a collapse and nationwide depression was certain, then in August of 1929 the Fed began to tighten money.
It is not a coincidence that the biographies of all the Wall Street giants of that era, John D. Rockefeller, J.P. Morgan, Bernard Beruch etc. all marveled that they got out of the stock market just before the crash and put all their assets in cash or gold.
On October 24th, 1929, the big NY bankers called in their 24-hour broker call loans. This meant that both stockbrokers and customers had to dump their stocks on the market to cover their loans, no matter what price they had to sell them for. As a result, the market tumbled and that day was known as "Black Thursday".
Curtis Dall, a broker for Lehman brothers, was on the floor of the NY stock exchange the day of the crash. In his 1970 book, "FDR: my exploited father in law", he explained that the crash was triggered by the planned sudden shortage of call money in the NY money market.
Within a few weeks, $3 billion of wealth simply seemed to vanish. Within a year, $40 billion had been lost.
But did it really disappear? Or was it simply consolidated in fewer hands?
And what did the Fed do? Instead of moving to help the economy out, by quickly lowering interest rates to stimulate the economy, the Fed continued to brutally contract the money supply further, deepening the depression.
Between 1929 and 1933, the Fed reduced the money supply by an additional 33%.
Although most Americans have never heard that the Fed was the cause of the depression, this is well known among top economists. Milton Friedman, the Nobel Prize winning economist at Stanford University, said the same thing in a national public radio interview in January of 1996:
“The Federal Reserve definitely caused the Great Depression by contracting the amount of currency in circulation by one third from 1929 to 1933”
But the money lost by most Americans during the depression, didn't just vanish. It was just re-distributed into the hands of those who had gotten out just before the crash and had purchased gold, which is always a safe place to put your money just before a depression.
Following the crash the great depression put 1/3 of the US workforce out of work. The banks foreclosed on property and took possession of peoples' homes and farms. When panicked citizens lined-up at banks to withdraw their hard earned savings, the banks gave them only 10c on the dollar.
Homeless and desperate, many Americans set up tent cities and roamed the rails looking for work.
Congressman Louis McFadden, chairman of the House Banking Committee, claimed the crash was planned by the international bankers who sought to become rulers of us all. In his famous 1932 Congressional address he said "Mr. Chairman, we have in this country one of the most corrupt institutions the world has ever known. I refer to the Federal Reserve Board and the Federal Reserve banks. The Federal Reserve Board has cheated the people of the United States out of enough money to pay the national debt 3 times over. This evil institution has impoverished and ruined the people of the United States through the defects of the law in which it operates and through the corrupt practices of the moneyed vultures who control it. Some people think the Federal Reserve Banks are government institutions. They are not government institutions; they are private credit monopolies which prey upon the people of the United States for the benefit of themselves."
Following a series of death threats, McFadden died from food poisoning followed by a heart-attack, under suspicious circumstances.
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