Today we have an important history lesson, about how central the power to coin money has been in US history.
By the mid 1700s, Britain was heavily indebted and decided to raise taxation in the prospering US colonies. America at that point was prospering very well, thanks to its own currency, ‘Colonial Scrip’, which was debt-free paper money with no interest, not backed by any commodity. It was issued in proportion to demand and growth by the people for the people. Britain was outraged, and in 1764 issued the Currency Act of 1764, rendering it illegal for the colonies to print their own money and pay Britain in gold. The popular slogan ‘No taxation without representation!’ arose from the unfair taxation of colonists who were unrepresented in the British parliament. Depression and unemployment quickly beset the US colonies following the Act, forcing Benjamin Franklin to famously later reflect:
“The inability of the colonists to get power to issue their own money permanently out of the hands of George III and the international bankers was the prime reason for the Revolutionary War” – Benjamin Franklin
In 1773,the British undercut US tea by dumping cheap tea onto their shores while taxing US tea under the Tea Act as a punishment for disobedience, prompting the Boston Tea Party, which boycotted British tea and further fuelled anti-British sentiment. Britain declared war on the US in 1775 in what was known as the Revolutionary War. To add insult to injury, the following year in 1776 they passed yet another tax act, the Stamp Act, and the tax was to be paid in anything but Colonial Scrip. The colonists had to print their own money to finance the war effort. Their gold stocks were all but exhausted and found themselves in Britain. Therefore, the colonists printed new Continental Currency notes, which were paper notes backed by future confidence in taxation income.
The war ended in 1783 with the recognition of US independence from Britain. Still undeterred, in 1791 the bankers and their ally Alexander Hamilton, then Secretary of the Treasury, set up the first central bank in United States history, the ‘First Bank of the United States’. It had a 20-year charter and was based on the Bank of England, issuing fiat Dollars for the first time. Fractional reserve lending had now enslaved the American people. Instead of issuing debt-free currency for the people like Colonial Scrip, the First Central Bank lent dollars into existence at interest, and was owned by private shareholders, none other than the Rothschild banking cartel in Europe. The US government had to borrow credit instead of issue its own currency without interest and the government became subservient to a few dominant men. So arrogant had the Rothschilds become that Amschel Rothschild proclaimed after setting up his bank in Frankfurt:
“Let me issue and control a nation’s money and I care not who writes the laws” – Amschel Rothschild
President Thomas Jefferson became outraged as his country plunged into ever increasing debt to the malevolent bankers. When the bank’s charter was due to expire in 1811, Congress did not renew it. The bankers threatened to plunge the country into war if they did not get a renewal. A few months later, in 1812, Britain attacked America in the war of 1812. The war lasted nearly three years until 1815, after which the US plunged into a depression due to post-war inflation. Meanwhile in Europe in 1815, an important battle raged in Waterloo between Napoleon Bonaparte and the rest of Europe. Bonaparte was a sceptic of the bankers, raising much of his money through the sale of the Louisiana landmass in the US in return for $3 million in gold in what was known as the Louisiana Purchase. His distaste for bankers was summarised with the following quote:
“When a government is dependent upon bankers for money, they and not the leaders of the government control the situation, since the hand that gives is above the hand that takes… Money has no motherland; financiers are without patriotism and without decency; their sole object is gain” – Napoleon Bonaparte
The Rothschild banking cartel lent to both sides of the war, knowing that the debts of the vanquished will be taken on by the victor. When the outcome of the battle became known, news of Napoleon’s defeat arrived in Britain to the Rothschild banking cartel faster than it did to the British government. As cunning bankers, the Rothschild branch in Britain sold all of its British stocks and bonds, signalling to the market that Britain had lost the war. A panic quickly ensued and the British stock market crashed, allowing Rothschild to buy up stocks and bonds by the penny. Nathan Rothschild made a fortune.
The war of 1812 ravaged the United States, as promised by the European bankers and their US proxies. The Rothschilds had taken over the Bank of England and were calling for a second central bank to be created in America. A second central bank was installed by President Madison, under the name of the ‘Second Bank of the United States’ in 1816, in the hope that it will remedy the economic turmoil that the United States had found itself in. It was chartered for 20 years again. Little did Madison know how much worse would things get when the people were deprived of issuing their own debt-free money.
Since the War of 1812, the US was mired in almost constant economic turmoil and recessions during the period 1815 to 1829, when the bankers’ second central bank had ensnared the US. In 1828 President Andrew Jackson came into office, and he made it clear that he will not tolerate the bankers, calling them rightly ‘a den of thieves and vipers’. In 1835, an assassination attempt on Jackson was carried out without success. It was most likely orchestrated by the bankers in anticipation of his non-compliance with the banker’s demands. When Congress renewed the bank’s charter in 1836, President Jackson vetoed the bill. His veto message was clear:
“Controlling our currency, receiving our public moneys, and holding thousands of our citizens in dependence, it would be more formidable and dangerous than the naval and military power of the enemy” – Andrew Jackson
Later on Andrew Jackson would mull:
“If the American people only understood the rank injustice of our money and banking system, there would be a revolution before morning” – Andrew Jackson
Nicholas Biddle, the bank’s president, was furious. In the wake of the bank’s collapse, hundreds upon hundreds of state-chartered banks flourished, issuing many different currencies in the form of State Notes, backed by gold or silver. Many states had their own currencies. This period in US history, from 1837 to 1862, became known as the ‘Free Banking Era’.
The Rothschild bankers in Europe were so angry that they had been denied the power to subjugate US citizens that they began to hatch a plan to aggravate the United States government. They began sending agents to the South where they had ties to the rich cotton growers who were using slaves abundantly, and supported secessionism. Eventually the South seceded from the United States to form the Confederacy in April 1861, and the American Civil War broke out between the Union in the North and the Confederacy in the South. This occurred a month after Abraham Lincoln was inaugurated as President of the Union in March.
As the Civil War raged on in the US, a civil war erupted in Mexico as well. Benito Juarez, a liberal reformer backed by the US, came out on top and facing debt difficulties, suspended repayments to all his creditors, including his European lenders. Britain, France and Spain used this as an opportunity to invade and position themselves at the rear at the height of the Civil War. The Union became alarmed and saw this as a violation of the Monroe Doctrine. At this point, it is unclear whether Lincoln decided to use his good relationship with Tsar Alexander of Russia or if the Tsar chose to offer support, but in 1863, Tsar Alexander sent navy forces to New York and San Francisco and offered troops to Lincoln. This gesture was meant to show France, Britain and Spain to back off from supporting the Confederacy.
Lincoln needed money to fund the war effort and went to look for funding in Europe, where the Rothschild banking cartel offered him exorbitant interest rates, wanting Lincoln to lose. But Lincoln saw such funding as noxious, and he chose to issue interest-free Demand Notes between 1861 and 1862. Then from 1862 the Legal Tender Act essentially allowed the Treasury to print its own money and Greenback Notes were issued, distinguishing them from all the other state notes in circulation by their green colour. Lincoln taxed the many different state notes to drive them out of circulation, and imposed a federal system of interest-free fiat money to pay for the war. There were still many different currencies in circulation in the US, but Greenbacks were the federal government’s own. Lincoln remarked:
“The government should create, issue, and circulate all the currency and credit needed to satisfy the spending power of the government and the buying power of consumers. The privilege of creating and issuing money is not only the supreme prerogative of government, but it is the government’s greatest creative opportunity. The financing of all public enterprise, and the conduct of the treasury will become matters of practical administration. Money will cease to be master and will then become servant of humanity” – Abraham Lincoln
The system of the Greenbacks was such a successful boon on the US economy, that Lincoln considered adopting it as a permanent policy. The bankers were mad. An ominous yet illuminating article appeared in the London Daily Times:
“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” – London Daily Times
Clearly, Lincoln had threatened the bankers. Not long after, on April 14th, President Lincoln was assassinated. Although the official explanation was that his killer, John Wilkes Booth was a Southerner and saw Lincoln as a traitor in trying to abolish slavery, a much sinister motive lay beneath the surface. It was most likely the bankers who assassinated him for threatening their debt-based monetary system. By June 1865, the Civil War ended, and at the end of 1865 in December, Congress ratified the 13th Amendment, which formally abolished slavery in the United States.
After Lincoln’s death, the bankers were eager to institute their system of debt. President Andrew Johnson was now in power. Back in 1863 – 1864 due to all the confusion from so many various currencies in circulation at the same time, the National Bank Act of 1863 was ratified, mandating there be only one national currency to be issued by national banks only. The national currency the bankers wanted were interest-bearing National Bank Notes. But fully replacing all the other currencies was not a smooth, sudden process. To that end, the bankers helped pass the Contraction Act of 1866, effectively retiring some of Lincoln’s interest-free Greenbacks from circulation. This diminished the money supply and caused a recession at a time when the economy should have been recovering from the war. The bankers used a tried and tested method of manipulation; making life tough for people by deflating the economy and then precisely when the citizenry becomes so desperate, they offer a chosen solution as a way out.
What they had in mind was a gold standard. In 1872, Congress passed the Coinage Act, which stopped the minting of silver coins and mining of silver that year. By 1873, gold coins were the only form of coin money. The reason for suspending silver had to do with events in Europe at the time. When German chancellor Otto Von Bismarck unified Germany and abandoned silver as currency and replaced it with gold in 1871, many other nations followed suit because Germany was a rising trade power. Since silver demand dropped, the US silver mining industry collapsed. The bankers wanted the US to be part of the trend and in no way return to the prosperity under interest-free Greenbacks.
With the gold standard, money supply contracted further and in 1873, the Vienna stock market crashed in what was known as the Panic of 1873, plunging both Europe and the US into one of the longest depressions. In 1877 riots broke out across the United States, and the bankers were determined to prevent the issuance of Greenbacks at all costs. American Bankers Association secretary James Buel at the time summed up the bank’s reasoning:
“It is advisable to do all in your power to sustain such prominent daily and weekly newspapers, especially the Agricultural and Religious Press, as will oppose the greenback issue of paper money and that you will also withhold patronage from all applicants who are not willing to oppose the government issue of money. To repeal the Act creating bank notes, or to restore to circulation the government issue of money will be to provide the people with money and will therefore seriously affect our individual profits as bankers and lenders” – James Buel
Clearly the bankers did not wish anything in the pubic interest and their con-game was revealed. The US came out of the depression first, in 1879, while in Europe it lingered on until 1896. In 1881 President Garfield was elected, who grasped very well what the bankers wanted:
“Whosoever controls the volume of money in any country is absolute master of all industry and commerce… And when you realise that the entire system is very easily controlled, one way or another, by a few powerful men at the top, you will not have to be told how periods of inflation and depression originate.” – James Garfield
Unfortunately like all good presidents with the public’s interest in mind, he ended up on the banker’s hit list and was assassinated that year. Garfield was well aware of the banker’s plots and also advocated bi-metalism, in which gold and silver would be used side by side as currency. In an era of a banker-imposed gold standard, he made a fatal mistake.
However, his legacy lived on. After some uneventful years with President Chester Arthur and President Grover Cleveland not upsetting the status quo, a few recessions passed before there was resistance to the bankers yet again. The period from about 1893 to 1913 marked the Free Silver era. A populist Free Silver Movement had arisen, calling for silver to be reinstated alongside gold in a dominant ratio of 16:1, due to its relative abundance to gold (which the bankers used to limit money supply and inflict constant recessions on the economy). This culminated in the 1896 elections, where on one side William Jennings Bryan campaigned to bring back silver and William McKinley had the support of the bankers, choosing to hold onto the gold standard. McKinley won the election and again in 1900, the year in which he reaffirmed the gold standard by passing the Gold Standard Act. Under the act, gold was redeemable for interest-bearing National Notes and bi-metalism was killed. So silver was redeemable for gold.
Next year in 1901, McKinley was assassinated by an anarchist, and President Theodore Roosevelt stepped up to the job. In 1907, a financial crisis swept the nation, dubbed the Panic of 1907. It began when the New York Stock Exchange crashed. Bank and trust runs then followed, most notably with the failure of the Knickerbocker Trust. The JP Morgan bank then cleverly intervened, with a little help from a few politicians, and was authorized to inject liquidity into the economy by creating new money. JP Morgan was hailed as a saviour by a desperate people wedged between collapse and JP Morgan, or so had the bankers made them think. This intervention would eventually pave the way as a justification by the bankers to set up a central bank, – the Federal Reserve. The bankers were now edging closer and closer to their master plan of total domination in the money supply, while the people lost more and more control over their financial destiny. .
In 1910, a secret meeting took place on Jekyll Island, off the coast of Georgia. Senator Nelson Aldrich and a few executives representing the most powerful men in finance and business of that day including J.P Morgan and John D. Rockerfeller, met in the darkest of hours and in the utmost secrecy. They even used fake nicknames to communicate with each other, to prevent even the very few servants from knowing, that were there with them. This was the most sinister plot the bankers had yet contrived. It was the birth plan for the Federal Reserve Bank.
After Roosevelt’s two terms, President William Taft served only one term before losing to President Woodrow Wilson in 1912. Luck have it, he was also a friend of the bankers. The bankers knew the time was fast approaching for their coup d’etat. They put in motion a bill, to establish a central bank in the United States by the name of the ‘Federal Reserve Bank’, to make it sound like a government entity. In reality, the Federal Reserve was anything but a part of government. It was a privately owned bank controlled by private shareholders; the bankers themselves. On that fateful day, on December 23rd 1913, the House passed the bill and the Senate was almost empty. Most of the senators were at home preparing for Christmas, but the Senate had not technically adjourned for the day. Only 3 senators were present, one of which was none other than Nelson Aldrich, the banker’s bought-and-sold senator. The 3 senators passed the bill, in the most treasonous manner against the American people, at a time when many congressmen were at home with their families. The Federal Reserve Act was passed and the Federal Reserve Bank was born in sin.
The Federal Reserve Bank, unaccountable to nobody except private bankers, beyond the control of Congress, the US government, the CIA and the FBI, was given the power to; determine the purchasing power of the national currency, decide how many people are able to be employed or unemployed, become the government’s main creditor and last but not least, reserve the monopoly to create money out of thin air and lend it at interest, effectively enslaving America into debt from day one and ensuring the perpetual transfer of wealth from the economy unto itself for free.
Despite being bought by the bankers, the last remaining vestige of conscience Woodrow Wilson had after overseeing the greatest scam in the history of the United States, too little too late, he came to regret his decision:
“I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation is controlled by its system of credit. Our system of credit is concentrated. The growth of the nation, therefore, and all our activities are in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated Governments in the civilized world 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, after signing the Federal Reserve into existence – Woodrow Wilson
Since the Federal Reserve was set up in 1913, the US dollar has lost over 95% of its purchasing power, see below: