Creation of the FEDERAL RESERVE BANK

Excerpt from SECRET SOCIETIES AND THEIR POWER IN THE 20TH CENTURY

…AND THUS ENDETH FREEDOM IN AMERICA

Towards the end of the 19th century the banks controlled by the Rothschilds started a big campaign to get the rich American economy under their control.  Around 1900 the Rothschilds sent a further agent to the U.S., PAUL WARBURG, to collaborate with the banking firm of Kuhn Loeb & Co.  Take note of this name: he was yet to interlink many more organizations!  JACOB SCHIFF and PAUL WARBURG started a campaign for the creation of the FEDERAL RESERVE BANK as an established PRIVATE central bank in America.

In 1907 Jacob Schiff said before the New York Chamber of Commerce:

“If we don’t get a central bank with sufficient credit control this country will experience the most severe and far-reaching financial panic in its history.” (Des Griffin: Descent Into Slavery).

No sooner said than done.  They went on to hurl the U.S. into a monetary crisis the resulting panic at the financial market of which ruined the lives of tens of thousands of people all over the country.  The panic at the New York stock exchange brought the Rothschilds – quite apart from a profit of several billion U.S.$ – the success they hoped for.  Cunningly planned, the panic was used as an argument for the establishment of a central bank to stave off similar occurrences.  Paul Warburg then told the bank and currency committee: “In the Panic of 1907, the first suggestion was ‘let us have a national clearing house’ (Central Bank).” (Gary Allen: None Dare Call It Conspiracy).

The final version of the decision to introduce the FEDERAL RESERVE SYSTEM (the private central bank of the U.S.) was conceived on J.P. Morgan’s estate on Jekyll Island, Georgia. According to H.G. Dorsey the meeting was attended by A. Piatt Andrew, Senator Nelson Aldrich, Frank Vanderlip (president of Kuhn Loeb & Co.), Henry Davidson (senior partner in the J.P. Morgan Bank), Charles Norton (president of Morgan’s First National Bank), Paul Warburg and Benjamin Strong (president of Morgan’s Bankers Trust Co.).

The introduction in 1913 of the Federal Reserve System enabled the international bankers to consolidate their financial powers in the U.S.  Paul Warburg was the firs chairman of the Federal Reserve Bank of New York.

The Federal Reserve Act was soon followed by the 16th Amendment to the Constitution which enabled Congress to levy taxes on the personal income of U.S. citizens.  This was the consequence of the fact that the U.S. government could no longer print its own money to finance its operations.

For the first time since the founding of the U.S., income tax was levied.

The foremost shareholders of the FEDERAL RESERVE (The FED) were:

Rothschild banks in London and Paris

Lazard Brothers Bank in Paris

Israel Moses Seif Bank in Italy

Warburg Bank in Hamburg and Amsterdam

Lehman Bank in New York

Kuhn Loeb Bank in New York

Rockefeller’s Chase Manhattan Bank in New York

Goldman Sachs Bank in New York.

Congressman CHARLES LINDBERGH already then described the new Federal Reserve System as the “Invisible Government” by it financial power.

How does “The FED” function?

The FED’S “Open Market Committee” produces Federal Reserve Notes (dollar notes).

THESE NOTES ARE THEN LOANED TO THE U.S. GOVERNMENT AGAINST OBLIGATIONS THAT SERVE THE FED AS SECURITY.  THESE OBLIGATIONS ARE HELD BY THE TWELVE FED BANKS WHICH RECEIVE THE YEARLY INTEREST PAYMENTS THEREON.

Remarks to Today’s Situation:

In 1982 the U.S. tax office put the national debt at US$ 115,800,000,000 in interest payments from the American tax payers.  This interest capital goes into the coffers of the Fed, and so to the international PRIVATE bankers.

In 1992 the obligations held by the Fed reached US$ 5,000,000,000,000and the interest payments by the tax payers rise continually.  And this fortune was created by the FED lending money to the U.S. government and charging high interest rates for something that cost the FED only paper, ink and printing costs.  This is one of the biggest swindles in the history of the U.S. and almost nobody notices.  And so the FED holds – via the obligations of the U.S. government – the lien on the state and private property of the WHOLE OF THE UNITED STATES OF AMERICA.  Innumerable lawsuits have not been successful in reversing the Federal Reserve Act.  There is no legal way for the citizens to reclaim the money because the FED is not a part of the government but a private intitution.  Apparently the FED is not constitutional and should therefore not exist.  Nine U.S. states have cases pending to abolish the FED.

THE ROTHSCHILD TOWING SERVICE

Kings and dictators were always infamous for spending more than they could squeeze out of their subjects in taxes.  The nations and government then had to borrow the necessary sums from the banks.  But how could the banks retrieve their money if a government could not or would not pay up?  The solution is war!

The business of financing governments functions on similar lines as the credit institute that lends a client money to buy a car.  If the client cannot pay the monthly installments the car is recovered.  And how does one recover a vehicle?  With another car!  The same with financing governments.  You don’t just lend money to one country only, you also lend to that country’s enemies.  The lender has to ensure that both countries are of about the same strength so that in the case of conflict financing will be the deciding factor.  If a country does not pay up, the lender will threaten it with war by another country of, if it still refuses payment, have it “recovered” by that other country as booty. (see Machiavelli).

The House of Rothschild has followed these guidelines for about 160 years now (No. 9 of the Protocols).

Nathan and his brothers started this “game” at the beginning of last century in Europe, after they reaped so much profit from the Napoleonic wars.  At that time something developed in Europe that came to be known as the “Balance of Powers”.  In order to strengthen its position as “invisible ruler” of Europe the House of ROTHSCHILD had to build up two power groups of similar strength to guarantee that “Balance of Powers”.  They had  to ascertain that all the A kings could be threatened with all the B kings.  Naturally they financed both sides.  Then they required a third power as a kind of insurance should one of the countries sep out of line.  This country is Nathan’s England which thus was supreme power in Europe. The outcome of a war could always be determined by checking which side was favored by England.  At the end England was always on the side of the winner.  England, or the Crown, more appropriately, had such an efficient kingdom recovery service at their hands that the power of the house of ROTHSCHILD reached tremendous heights.  Around the turn of the century it was said that they controlled half the property of the world.

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