The United Slaves Of America & The Federal Reserve: Economic Collapse

-N. Carter

Before the current version of our dollar was established gold and silver was exchanged as forms of currency. A rudimentary form of banking was started to safely store excessive amounts of these precious metals, primarily gold. Receipts were used to keep track of the gold and the receipts began to be exchanged. This exchange of receipts could accurately be described as the first form of paper money. Receipts were used increasingly more until only a few individuals regularly withdrew considerable quantities of gold. Eventually receipts outnumbered the amount of gold regularly exchanged and people became accustomed to the idea of paper money.

Bankers began to realize people were dealing primarily in receipts and rarely returning to the bank to exchange them and thought of ways to make a profit. One of these ways included a system of credit and promissory notes. Right now a similar sequence of events is unfolding, today money is little more than digits on a screen. Slowly cash is being phased out, becoming obsolete to make way for a universal currency. We are depositing ever more amounts of paper money into banks and have fallen victim to a vast pyramid scheme.

In the past we were cautioned about being controlled through a system of debt/credit by our forefathers. We were warned about the potential of widespread homelessness due to controlling the value of currency through inflation & deflation. We were even told what the perpetuation of an establishment like a central bank could do to our economy. Nevertheless we find ourselves with the Federal Reserve, or simply the Fed, the privately owned central banking system of the United States. The 7th president Andrew Jackson was adamantly opposed to this type of disingenuous banking in America and endeavored to terminate it. During this endeavor someone tried, and failed, to assassinate him on January 30th, 1835.

Presidents James A Garfield, Abraham Lincoln, and John F. Kennedy were also openly opposed to this type of banking; coincidentally they were victims of assassination as well. There has always been severe opposition to central banks and forms of fractional reserve practices from those who understand its dangers. The above-mentioned presidents are just some of the multitude that has voiced disdain for these types of corrupt financial schemes. Make no mistake; it doesn’t take a president, politician, or economist to conclude something like forced taxpayer funded government bailouts for corporate and financial criminals in a free and open market might come off as oppressive and tyrannical. We can also see the signs of oppression and tyranny slowly being implemented in the guise of fighting an enemy.

There always appears to be an anti-thesis—a villain—to justify the allocation of billions towards military defense spending and government budgets. At some point we have to ask ourselves why the establishment continually provides abundant funds for war and violence yet regularly usurps funds for educational institutions. Perhaps with additional resources directly distributed toward educational efforts violent conflict won’t be the primary resolution for our difficulties. Unfortunately strategic war and conflict can be an extremely lucrative financial opportunity for certain individuals behind the network of the Federal Reserve.

Henry Ford, in his four volume series ‘The International Jew’, published and distributed in the 1920s, writes: "I studied the causes of war and I am convinced that nearly all wars were caused so that someone would profit, and those who profited and those who are profiting now are the international financiers, the Jews. Two very prominent Jews began telling me about the power of the Jewish race, how they controlled the world through gold, and that the Jew and no one but the Jew could stop the war. [WW1] They went into details to tell me the means by which the Jews controlled the war... how they had the money, how they cornered all the basic materials needed to fight the war and all that, and they talked so long and so well that they convinced me. They said that the Jews had started the war and would continue it as long as they wished, and until they stopped the war it would not be stopped. Gather together the fifty most wealthy Jewish financiers, the men who create wars for their own profit, control them, and you will put an end to it all."

Notice the thinly veiled connection about to be made. The way of life has taken a radical new turn after 9/11 when America declared the ‘War on Terror’. America declared war, not on a group or organization but on an idea; there has been no shortage of “enemies” or victims since. War is terror; the notion that we can effectively combat terror with terror and achieve peace is lunacy. It’s next to impossible to resolve a problem with the same mindset that gave birth to it. This is where we find ourselves with the Fed, attempting to solve our national debt crisis by implementing ineffective reforms and increasing the debt ceiling.

The Fed has our politicians and country in a financial stranglehold as the scales of power have been tipped in favor of the elite who check true economic freedoms. It creates money only from the freshest of air and loans it to our government at an interest to be paid back with tax dollars. The Federal Reserve is neither federal nor a reserve; the name is an intentional deception. It consists of 12 separate banking districts with the headquarters in Washington D.C. The following guidelines are excerpts from an economic education document produced by the Federal Reserve Bank of Chicago.

· “The 12 regional reserve banks aren't government institutions, but corporations nominally 'owned' by member commercial banks.”

· “The actual process of money creation takes place in commercial banks."

· "Commercial banks create checkbook money whenever they grant a loan, simply by adding new deposit dollars in accounts on their books in exchange for a borrower's IOU."

· “Banks do not really pay out loans from the money they receive as deposits. If they did this, no additional money would be created. What they do when they make loans is to accept promissory notes in exchange for credits to the borrowers' transaction accounts."

This means the bank can create more money than it has in deposits and earn a profit from private debt. This is important to understand because most believe the entirety of our debt is owed to foreign countries, however a significant portion of our debt stems from our fractional reserve banking system. The Fed owns no gold or silver and hasn’t since 1934. According to their website federalreserve.gov, “The Gold Reserve Act of 1934 required the Federal Reserve System to transfer ownership of all of its gold to the Department of the Treasury.” Although it prints and issues all our currency, it has yet to be audited in over a century of its existence. It is the biggest part of our monetary system yet very few know about it. We use money everyday of our lives yet almost anyone you ask isn’t aware of what determines its value or where it comes from.

The Federal Reserve was enacted on December 23, 1913 by Woodrow Wilson and plays an integral role in the New World Order. However its origins are not that completely cut and dry. In November of 1910 seven self-selected men whose combined fortune at the time totaled approximately ¼ of the world's wealth conducted a secret meeting lasting over a week. The meeting wasn’t fully admitted to until two decades later. It took place at Jekyll Island, off of Georgia's Atlantic coast, home of the Jekyll Island club. The Jekyll Island Club is a prestigious social club with members such as J. P. Morgan, William Rockefeller and their cohorts. Nelson Aldrich, A. Piatt Andrew, Henry Davison, Frank Vanderlip, Paul Warburg, Benjamin Strong and Charles Norton, drew up a nefarious framework for reforms on the nation's banking system that became the foundation for the Federal Reserve just 3 years later.

Senator Nelson Aldrich, father in law to John D. Rockefeller Jr., held the position of chairman of the National Monetary Commission, the Republican whip in the Senate, and was a business associate of J.P. Morgan. A. Piatt Andrew, a prominent figure in banking networks, was Assistant Secretary of the Treasury and later became a Congressman. Henry Davison was the senior partner of the J. P. Morgan Company. Frank Vanderlip was the President of the National City Bank of New York, a chief curator of the financial interests of William Rockefeller. Paul Warburg was a representative of the Rothschild banking dynasty and a partner to the transnational financing industry of Loeb & Company.

Benjamin Strong, who became the first head of the Federal Reserve System, was also the head of J. P. Morgan's Bankers Trust Company. Lastly there was Charles Norton who was the President of the First National Bank of New York, quite an interesting milieu of characters to say the least. These were some of the premier leaders in business, the corporate and financial elite of the time. Esteemed researcher and author of ‘The Creature from Jekyll Island’, G. Edward Griffin, alludes to why such secrecy surrounded this collusion of influential men in one of his works ‘A Talk by Edward Griffin’. Here is an excerpt.

“For quite a few years thereafter these men denied that any such meeting took place. It wasn't until after the Federal Reserve System was firmly established that they then began to talk openly about their journey and what they accomplished. Several of them wrote books on the topic, one of them wrote a magazine article and they gave interviews to newspaper reporters so now it's possible to go into the public record and document quite clearly and in detail what happened there.”

“Frank Vanderlip who was at the meeting wrote an article that appeared in the Saturday Evening Post on February 9, 1935 and I'd like to read for you just a short excerpt from that article. This is what Vanderlip said: "I do not feel it is any exaggeration to speak of our secret expedition to Jekyll Island as the occasion of the actual conception of what eventually became the Federal Reserve System. We were told to leave our last names behind us. We were told further that we should avoid dining together on the night of our departure. We were instructed to come one at a time and as unobtrusively as possible to the railroad terminal on the New Jersey littoral of the Hudson where Senator Aldrich's private car would be in readiness attached to the rear-end of a train to the south.”

“Once aboard the private car we began to observe the taboo that had been fixed on last names. We addressed one another as Ben, Paul, Nelson and Abe. Davison and I adopted even deeper disguises abandoning our first names. On the theory that we were always right, he became Wilbur and I became Orville after those two aviation pioneers the Wright brothers. The servants and train crew may have known the identities of one or two of us, but they did not know all and it was the names of all printed together that would've made our mysterious journey significant in Washington, in Wall Street, even in London. Discovery we knew simply must not happen. Vanderlip goes on to say: "If it were to be exposed publicly that our particular group had gotten together and written a banking bill, that bill would have no chance whatever of passage by Congress."

So who is the J.P. Morgan character so closely associated with these men? J. P. Morgan, otherwise known as John Pierpont Morgan, was one of the premier financial moguls of his era. He financed a series of giant industrial consolidations that reshaped the corporate structure of the American manufacturing sector and helped to create the world’s first known billion-dollar corporation. He was an extremely powerful and influential banker that organized major corporations like U.S. Steel, International Harvester and General Electric. He also financed, organized, and consolidated railroads until he ultimately gained huge portions of those railroad stocks gaining control of an estimated one-sixth of America’s rail lines.

J.P. Morgan allegedly reported false rumors about the financial integrity of banking institutions in 1907; as a result depositors began frantically making a run on their assets. The banks didn’t have enough capital to maintain pace with the sudden demand and ultimately forced a number of them to close and sell. Several retailed far below market value as the more prominent financial establishments capitalized on the situation; a huge banking consolidation ensued. The Fed was painted as the solution for our problematic economy a few short years later, interestingly enough just over a decade after it was implemented the Great Depression began.

According to Ben Bernanke, American economist at the Brookings Institute and former chairman of the Federal Reserve, the fed was responsible for the Great Depression. Bernanke made this clear in a remarkable statement he made on November 8, 2002 to Nobel Prize--winning economist Milton Friedman and Anna J. Schwartz, authors of the 1963 book, ‘A Monetary History of the United States’. “I would like to say to Milton and Anna: Regarding the Great Depression. You’re right we did it. We’re very sorry. But thanks to you, we won’t do it again.” Today the Federal Reserve regulates its own industry, the monetary policy, and our national sovereign right to issue currency belongs to them, frightening.

To reiterate, the proposed solution to our economic trouble—the Federal Reserve—failed demonstrably at its stated goal and was admittedly responsible for one of the worst periods of poverty in American history. Our financial recklessness also played a role in 2000’s Dot Com burst, the fall of housing in 2008, and economists predict another currency failure, dubbed “The Greater Depression”, is likely on the horizon. The next failure will be critical in rapidly accelerating the implementation of a One-World Currency. Central banks and similar systems are arguably delivering the world’s economies into the hands of financial turmoil. This network of central banks could potentially be responsible for not only the “Greater Depression” but also international tension that may require enactment of the executive orders covered in Chapter 1. You may be familiar with the axiom “in terms of economy, when America sneezes the rest of the world catches a cold.” If this is true, then when America catches a cold, the rest of the world develops pneumonia.

Since we are insolvent and our money is no longer backed by gold or silver, we now have a fiat currency. A fiat currency is an inconvertible paper money that has been declared legal tender by decree of a government. Fiat currencies historically have a one hundred percent failure rate, meaning that it cannot be perpetuated indefinitely. The American dollar once held a value of 100c; after the turn of the century it's been circling the drain at less than 10c. The aim is to condition us to be complicit when they unveil their cash alternative. America has a history of financial failures and if we refuse to examine it we may once again fall victim to them. This is why we must be on the lookout for changes in the economic tide and learn from the trend of currency failures.

Our government is currently going broke, in reality it already has. This means that conventional rules of the monetary system will drastically change and are changing now. The changes we observe: (a) force individuals to invest in worthless government bonds. (b) Manipulation of our currency, which devalues it. (c) We see the retirement age go up, and (d) interest rates spike. Some call it Financial Martial Law. It is dissimilar to the Martial Law discussed in Chapter 1 declared during states of emergency. When it comes to the financial sector things are going to look radically different. Anything that has been saved or invested in banks, bonds, retirement accounts, stocks, etc. is currently at risk. Although it is breaking the law, during extreme financial crisis we have seen attacks on the Constitution, civil liberties, and pensions. We have witnessed this here in America before; the US government has used any means to protect itself and the economic power pyramid.

Make no mistake, the Constitution and civil liberties are no obstacle for the establishment. Each time we’ve seen government intervention during financial troubles it ultimately led to huge losses of wealth—especially among the lower and middle class people. To the elite, the security and future of the establishment supersedes the importance of the people. During the next monetary crisis you will see the fed being more hands on with your money—not just your taxes. In extreme cases the federal government is prepared to decide the funds that we can access and where they can be spent. In fact some popular banks already have a spending/withdraw limit, and if you try to move more than $10,000 you must inform the government.

America is no stranger to currency failure; there was even a point when the U.S. dollar was worth under a nickel. In the early years of American history we had what was called a continental congress. It was as greedy for money then as our current government is now, as a result something called continentals (or bills of credit) were created. This was before the Federal Reserve, however in essence, they did the same thing; they created “money” out of fresh air—millions in worthless paper. After its creation it was forced onto the citizens, there were penalties for those who didn’t deal in this new currency. In some cases when a person refused to accept bills of credit as payment for a debt it amounted to a cancellation of that debt.

Shortly after the continentals were introduced they began to inflate. In the beginning you only needed one continental dollar to get one dollar in silver, in little over a year you needed seventy-five continental dollars to get just one dollar in silver. A few short years later they lost 99% of their value, as a result, the government broke their promise to exchange continentals for gold and silver coins. This meant that those who still held continentals as currency were entitled to receive just one cent for every dollar.

For those of you who assert “too long ago to matter”, the continentals weren’t simply a one off deal; we have had other very similar financial arrangements. I am referring to the paper money called Greenbacks created under Lincoln to pay government debt and US soldiers. The government demonstrated a huge double standard with the Greenbacks. They didn’t accept their Greenbacks as forms of payment for things like taxes, only gold or silver was acceptable. Several years later the Greenbacks went the way of the continental and dropped over 60% in value. Due to the extreme devalue U.S. soldiers were forced to wait over a decade before the Greenbacks they carried could be redeemed for their proper value in gold.

Those who are familiar with Franklin D. Roosevelt likely remember that under his administration Americans essentially had their gold confiscated and were forced to turn it into banking facilities. This happened in 1933 when an unconstitutional order was passed that gave Americans about a month to turn in their Bullion, gold coins, and gold certificates to the Federal Reserve System, yes, that Federal Reserve. If citizens failed to comply they were subject to penalties: forfeitures, fines, and imprisonment. Almost immediately after the gold was collected the American currency suddenly and drastically decreased in value as the Continentals and Greenbacks did. For most Americans over 40% of their savings were lost. There seems to be a pattern of systematic currency failures throughout American history.

America is still feeling the effects of failed financial reform by our government and the Nixon administration paints a vivid picture of this. In 1971 when outside nations began to lose confidence in the dollar Nixon suddenly suspended the conversion of dollars into gold, not just for the US, but also for the rest of the world. This was supposed to be a temporary solution; in reality it was a permanent default. We effectively stole a huge amount of gold from the participating nations of the world. It wasn’t long before we saw staggering inflation; unemployment was in the double digits, stocks and the S&P fell by almost half, while interest rates soared near 20%.

The theft of our wealth has been incremental and manifests in a multitude of innocuous fashions (taxes, license, permit). For example, we have upwards of trillions of dollars worth of funds sitting around in IRAs, Social Security, and other general investment accounts. The government, through legal black magic, can mandate that each citizen invest a portion of funds from those accounts into U.S. promissory notes similar to the Continentals, Greenbacks, and the fiat dollar. Doing this would allow the government access to X amount of dollars. The only thing backing our forced investment would be a government bond that can and has been devalued at any time for virtually any reason, plunging us into hyper inflation.

What is the best method to combat a hyper inflationary scenario? There is a multitude of answers for this. There are probably as many answers as there are people who can come up with one, none being economists or financial experts, myself included. However if we approach this from a historical point of view, exchanging precious metals such as gold and silver has been widely favored. As mentioned earlier in this chapter, history has shown that our currency can suddenly no longer be recognized as having value. Precious metals would be regarded higher than dollar figures because in a hyper inflationary scenario paper money is virtually useless when you’d need excessive amounts to purchase common goods like eggs.

In this scenario, suddenly, what people are interesting in are the eggs. Individuals would be searching for options to exchange goods and organize transactions —if they recognize precious metals as having value. This being said, there are a range of various effects to consider. You could almost guarantee there would be some type of government restriction or intervention to prevent independent trades. If we truly assess the direction of our economic model we can understand that there is no guarantee that a hyper inflationary collapse scenario is the most likely. We are no doubt heading towards some calamitous fiscal difficulties; perhaps we are seeing a completely different platform of collapse all together.

In Ron Paul’s ‘Warning to America’ he states, “In 2008 Democrats talked about seizing private retirement accounts and converting them into accounts managed by social security. In 2013 the US Consumer Financial Protection Bureau considered ‘helping’ Americans manage their retirement accounts.” He goes on to say, “Obama has signed into effect myRA, an Independent Retirement Account that invests directly in government bonds.” According to the research, in 2011, 2012, and 2013, the US treasury essentially raided government employee pension funds in a haphazard attempt to subdue loses of the federal spending deficit. Similar events have happened outside of the US, in Ireland, Argentina, France, Hungary, Belgium, Russia, Bolivia, and Cyprus. During financial duress and desperate times governments do desperate things; this includes foregoing law & order and the Constitution for its personal interests. Given the evidence, the system isn't broken it was designed this way.

Do Your Own Research.

(Fiat Money) http://www.investopedia.com/terms/f/fiatmoney.asp

(Federal Reserve Guideline) http://home.earthlink.net/~cadman777/IBetYouThought.html

(Jekyll Island) https://www.bloomberg.com/view/articles/2012-02-15/the-secret-meeting-that-launched-the-federal-reserve-echoes

(Ben Bernanke) https://en.wikiquote.org/wiki/Ben_Bernanke

(Government Doc) http://files.eric.ed.gov/fulltext/ED175743.pdf

Edward griffin http://www.bigeye.com/griffin.htm

(Ron Paul Speaks About Financial Martial Law) https://www.youtube.com/watch?v=9yTWtm-mUJE

(Martial Law) https://en.wikipedia.org/wiki/Martial_law

(Fiat Money) http://www.investopedia.com/terms/f/fiatmoney.asp

(Bills Of Credit, Continentals) http://www.coins.nd.edu/ColCurrency/CurrencyIntros/IntroBillsofCredit.html

(Greenbacks) http://www.thegoldstandardnow.org/the-civil-war-and-greenbacks

(Greenbacks) http://www.newmarketnhhistoricalsociety.org/military/civil-war/a-soldier-s-pay/

(FDR’s Gold Grab) http://www.moonlightmint.com/bailout.htm

(Gold Confiscation) https://mises.org/library/great-gold-robbery-1933

(Nixon’s Gold Grab) http://www.forbes.com/sites/charleskadlec/2011/08/15/nixons-colossal-monetary-error-the-verdict-40-years-later/#1ec12d6e6682

(Nixon Ends Convertibility) http://www.federalreservehistory.org/Events/DetailView/33

(Attack On Retirement Funds) https://www.washingtonpost.com/news/federal-eye/wp/2015/03/13/treasury-again-tapping-tsp-federal-retirement-fund-for-debt-ceiling-relief/

(Attack On Pensions) http://www.thefiscaltimes.com/2015/03/16/Government-Hits-Debt-Ceiling-Treasury-Taps-Federal-Pensions

30 minute entertaining and informative cartoon explains the Federal Reserve system.

Documentary movie detailing the history of the Fed, brought to you by the Corbett Report. The same Corbett Report that brought you 9/11 in under 5 minutes.

-N. Carter