Recessionomics: The end of the Federal Reserve Bank, Part I
August 19, 2009 at 6:13 am by Al Coryell
By Al Coryell
PoHo correspondent
RECESSIONOMICS
Question: Do you think the Federal Reserve is going to be able to guide us out of this economic catastrophe?
I’m going to tell you a story - a story of corruption, deceit, greed and political intrigue. As it turns out, a true story, one stranger than fiction as true stories usually are. But amazingly, this story is little known by most of you, for the parties whom the story is about do a masterful job of hiding their true intentions while convincing you they are your best friends. They insist you need them, and without them your lives would be chaos. It’s all smoke, of course. But I assure you, most of you believe them because the machine they control is incredibly powerful. So powerful, in fact, that… well I get ahead of myself.
The story begins just after the turn of the 20th century, when, in 1910, seven men board a train in Hoboken, N.J.
The men were ostensibly on a duck hunting trip to a remote and exclusive Georgia coastline resort called Jekyll Island Club. It was a resort and hunting club owned by some of the richest men in North America, one of whom was J. P. Morgan. One of the men boarding the train that day carried a borrowed shot gun with him although, it was later revealed, he had no idea how to hunt. The shotgun was merely part of a cover story were he to be recognized by the press. Each man arrived at the train station separately. They spoke to no one, not even to each other until they had boarded a railroad car owned by Sen. Nelson W. Aldrich of Rhode Island, Republican “whip” in the Senate. The senator’s railroad car was not attached to the rest of train during the boarding period. Only after the train left the Hoboken station did it stop, reverse direction onto a side track, and couple the Aldrich car onto the very back of train, behind the caboose. No passengers on the train ever saw any of the men or even knew that they were on the train. Thus no one was aware that in that single car attached to back of the Georgia bound train, representatives of fully one-quarter of the wealth of the entire world were meeting clandestinely to reshape the monetary system of the United States of America.
Six of the seven men aboard that train were bankers. The six represented the three most wealthy families in the world, the Rockefellers and the Morgans from America, and the Rothchilds from Europe. The seventh man aboard was Aldrich, who was also chairman of the National Monetary Commission, and a business associate of J.P. Morgan. All were well known at the time, particularly to the newspaper media so they all dressed incognito, gave false names on the train roster, and called each other only by their first names. It was important no one recognize them lest their plan be discovered and forced to be abandoned. In his N.Y.Times bestseller called The Creature from Jekyll Island, G. Edward Griffin described the meeting this way:
The purpose of the meeting on Jekyll Island was not to hunt ducks. Simply stated, it was to come to an agreement on the structure and operation of a banking cartel. The goal of the cartel, as is true of all of them, was to maximize profits by minimizing competition between members, to make it difficult for new competitors to enter the field and to utilize the police power of government to enforce the cartel agreement. In more specific terms, the purpose and, indeed, the actual outcome of this meeting was to create the blueprint for the Federal Reserve System.
The blueprint was indeed completed at that meeting on Jekyll Island in Nov. 1910, and just three years later, Congress voted the creation of the Federal Reserve System into U.S. law as the Federal Reserve Act of 1913. The nature of that vote is a controversial subject. Detractors submit that the Senate Republicans conspired to delay the vote on the Fed’s establishment until the anti-Federal Reserve Democrats had left town on Christmas vacation. Federal Reserve supporters claim that there was no such conspiracy and that the accusation is unfounded. What is not in dispute is that the vote was taken in the late evening hours of Dec. 23, 1913, with the entire Republican constituency in attendance but very few Democrats and no proof seems to exist as to whether or not a quorum was in attendance. Of the 96 Senators at the time, it is claimed 27 of them, all Democrats, were not in attendance that night leading to conspiratorial accusations by the anti-Federal Reserve detractors that the vote was illegally taken and therefore the Federal Reserve Act was unconstitutionally passed. Supporters of the Fed have portrayed these accusations as fabricated myths. The following website is just one of many which support the efforts of the Federal Reserve and attempt to debunk the anti-Federal Reserve accusations: Debunking the Federal Reserve Conspiracy Theories
Regardless of conspiracy theories or the constitutionality of the enactment vote, with that vote any semblance of a true free market economy disappeared and was, instead, replaced with a centrally managed economy, patterned after the Rothchild central bank of Europe and privately owned by the heads of the wealthiest families in the world. It remains that way today. Ironically, the moniker Federal Reserve Bank is a complete misnomer, a fraud if you will. The privately owned, for profit corporation we fondly call the Fed is neither federal nor has any reserves, nor is it even a bank. And we can be quite certain that the misnomer was not an accident.
The Federal Reserve’s connection to the European central banking system remains as strong today as it has ever been. Because of the current “economic crisis,” the Fed’s secretive operations are coming under heavier scrutiny today by some of those in Congress who have finally awoken to the reality that perhaps the Fed is complicit in the problems, i.e. they are more part of the cause of this catastrophe than they will be a solution to it. One of the enlightened is Florida Congressman Alan Grayson. Watch him grill Ben Bernanke as to why we are loaning European central banks money to loan around the world when our own American businesses and corporations can’t find lenders to help them stay afloat here at home.
Next installment: What is a “free market” and why did the creation of the Federal Reserve System eradicate its existence from the face of the earth? The answer will surprise you. I’ll bet you thought we had a free market economy. I’ll bet you thought it failed and that’s why we are having to get control of (read “regulate”) the big corporations and greedy financial institutions. Well, we haven’t had a true free market economy since 1913. I will explain why. Stay tuned.
