Thank you to @the_liberty_movement for submitting their article on the topic of the U.S Federal Reserve. Read on for more thoughts and comment below!
*Please note: Cover art provided by and used at the request of the author.
The Federal Reserve is the central banking system of the United States. The Federal Reserve Act, along with the Income Tax Law, was passed by congress on December 23, 1913. The Federal Reserve goes back a bit further, to a meeting on Jekyll Island in 1910. Jekyll Island was privately owned by a small group of millionaires from New York, including J.P. Morgan and William Rockefeller. This island was used as a location for the “Jekyll Island Club”. The Federal Reserve was founded in a large club house set in the middle of the island.
In November of 1910, Senator Nelson Aldrich sent his private railroad car to the railroad station in New Jersey. He waited for the arrival of six other men who were told to come in secret. Once they got on the railroad car they were told to use first names only and some even came up with code names. After traveling for two nights they arrived at Brunswick, Georgia, then took a ferry to Jekyll Island where they spent the next nine days planning out what was soon to become the Federal Reserve. After they returned to New York, they denied the meeting ever happened until after the Federal Reserve was established (which was probably a good idea).
So who were these seven men? Republican Senator Nelson Aldrich was the chairman of the National Monetary Commission. Abraham Andrew was the Assistant Secretary of the Treasury. Frank Vanderlip was president of the National City Bank, the largest bank in America at the time and former Assistant Secretary of the Treasury. Representing the interest of William Rockefeller was Henry Davis, the partner of J. P. Morgan. Also present was Charles Norton, president of First National Bank, and Benjamin Strong who was head of J. P. Morgan’s Bankers Trust Company and three years later became the first head of the Federal Reserve. Finally, and arguably the most important, there was Paul Warburg, a representative of the Rothchild Banking Company in England. These 7 individuals are the men who founded the Federal Reserve.
In 1913 the Federal Reserve Act was passed by congress and signed by President Woodrow Wilson. Since the founding of the Federal Reserve, the Monetary Purchasing Power of the dollar has dissolved by 96%. Due to the Federal Reserve being a privately owned bank the U.S. Government can’t audit it nor do we know who owns it.
So what does the Federal Reserve do? Well, it does a few things. First it prints bank notes and loans them to the U.S. Government. The interest on these loans is paid through taxation. Second, they try to steer the economy. When the economy is moving too slow, usually when savings and interest rates are high, they will expand credit to lower interest rates and stimulate the economy. This encourages spending and investment in capital and discourages savings.
In 1920, the Federal Reserve began to expand credit, creating a boom. The problem with this is that it caused malinvestment, which resulted in the Great Depression. After the boom turned into a bust, unemployment rates expanded, businesses failed, and the stock market crashed. This is when the government decided to intervene setting artificial prices on goods and establishing the minimum wage. This intervention resulted in prolonging the Great Depression. Artificial prices leads to shortages, which in turn leads to rationing, while minimum wages increase unemployment.
Fast forward to June 4, 1963; President John F. Kennedy signed executive order no. 11110. This order restored the United States Treasury’s power to issue currency (backed with silver) without going through the Federal Reserve. With the stroke of a pen, Kennedy was on his way to putting the FED out of business. If enough of these Silver Certificates where to come into existence, it would have eliminated the demand for Federal Reserve Bank Notes. This is preferred since Silver Certificates are backed by silver and Federal Reserve Bank Notes are backed by nothing. They are simply ink and paper.
“There’s a plot in this country to enslave every man, woman, and child. Before I leave this high and noble office I intend to expose this plot!” – JFK, 7 days before his assassination.
On November 22, 1963, in Dallas, Texas president John F. Kennedy was assassinated. The next president Lyndon Johnson threw out Kennedy’s order.
The next atrocity committed by the Federal Reserve was the Housing Bubble Crash predicted by former congressman Ron Paul in 2003: “The special privilege granted to Fannie Mae and Freddie Mac have distorted the housing market by allowing them to attract capital they could not attract under pure market conditions… like all artificially created bubbles, the boom in housing prices cannot last forever. When housing prices fall, homeowners will experience difficulty as their equity is wiped out. Furthermore, the holders of the mortgage debt will also have a loss. These losses will be greater than they would have otherwise been had government policy not actively encouraged over-investment in housing.” – Ron Paul
Now there is a fear we are moving to the collapse of the dollar which will be much worse than the Housing Bubble Crash. According to Article 1, sections 8 and 9 of the United States Constitution, the Federal Reserve is unconstitutional. The founders of this nation knew that a private bank should not issue currency. Thomas Jefferson and Andrew Jackson fought against central banking. We should follow in their footsteps and end the FED.
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