The Truth About Money
By Andrew Gause
When you look closely at the money in your wallet or purse, you will notice, at the top of each bill, the words “Federal Reserve Note”. What is the Federal Reserve? Most Americans cannot answer that question. This is quite understandable, as the folks at the Federal Reserve Banks do not publish much information about their activities – and for good reason.
Most Americans assume the Federal Reserve Banks are a part of Government. They are not. The Federal Reserve Banks are private corporations, partially owned by foreign interests. These banks and their stockholders control the greater bulk of wealth in America.
To better understand the true identity and purpose of these corporations, one must go back to the earliest days of our Nation.
During the period after the Revolution, but before the drafting of the Constitution our Founding Fathers were approached by representatives of wealthy European banking families who proposed the establishment of a central bank for use by America. This bank would provide the money that our young nation would need to grow into a vibrant nation. However, the Founding Fathers rejected their proposal. The United States, being a sovereign nation, was fully capable of creating its own money supply. This power “to coin money and regulate the value thereof”, was given to our Congress in the Constitution.
Aside from knowing that the United States had the power to create its own currency, the Founding Fathers were well aware of the motives of the bankers…namely, to siphon off the wealth and natural resources of the people through various methods of currency manipulation, just as they had done throughout history in every major country of Europe. Thomas Jefferson expressed the prevailing attitude toward these men when he warned:
“I believe that banking institutions are more dangerous to our liberties than standing armies…The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.”
The banking conglomerates, although unsuccessful in their first attempt to gain control over our currency, did not give up. During the next one hundred years, they tried on several occasions to establish their Central bank for America, but the American people, still mindful of Jefferson’s warning, quickly caught on to their paper money “tricks”, and public sentiment remained against them.
Finally, in 1907, a banking panic shifted public opinion against the American banking industry. The European families recognized that finally their chance to take full control of America’s banking system had arrived. Fanning the flames of public outrage toward the existing banking system, the European bankers began, through the newspapers they owned and lobby groups they funded, to call for “full banking reform.” They clamored for Congressional investigations into the current banking system, and offered their expertise in drafting reforms that would protect the public against future bank failures.
By 1912, so widespread was public concern over banking reform that Presidential candidates from each political party offered their own carefully drafted versions of a nation monetary reform bill. What the public had no way of knowing was that the two main “competing” reform bills were virtually identical, as both were written by the same German banker, Paul Warburg. The public also had no way of knowing that the election campaigns of the three 1912 Presidential candidates were financed by Warburg’s firm (Kuhn, Loeb Company), one of the wealthiest and old banking houses of Europe. Both controlling not only the content of the banking reform bill, but also the results of the 1912 Presidential election, the foreign banking interests were guaranteed that their dream, the establishment of a Central Bank for America (and complete control over America’s currency), would finally be realized.
In 1913, the Warburg Central bank plan, intentionally mistitled, “The “Federal” Reserve Act”, was signed into law by newly elected president Woodrow Wilson. This bill officially transferred Congress’s Constitutional duty to issue America’s currency into the hands of a private corporation, The Federal Reserve Bank of New York. Stock in this private corporation was not made available to the public, and was purchased by only the powerful banking families.
At its inception, the activities of the Federal Reserve Banks were intended to be monitored by the President and Congress. However, over the years, through repeated subtle changes in legislation, the operations of this corporation have become completely independent of all Congressional control. Extremely secretive in its operation, this corporation even refuses to be fully audited by the United States Government.
To understand how the Federal Reserve Bank has successfully transferred the wealth and resources of the mightiest nation on earth into the pockets of its privileged shareholders, it is only necessary to examine the procedure that this corporation employs to create our currency.
When the management of the Federal Reserve Bank proclaims that one billion dollars should be created for use by the American people, they simply issue one billion dollars. By doing so, new money enters circulation, as the Federal Reserve Bank, the creator of money, is not required to have any actual funds of its own. With this money they purchase one billion dollars worth of US Treasury Bonds from its member banks. The banks now have one billion “new dollars” in their accounts, which they will then loan into the economy. Is it any wonder that the European banking families were so persistent in their efforts to be granted the right to issue America’s currency? When the Federal Reserve Bank takes possession of US Treasury Bonds, it also takes possession and control of the real wealth of America, as it is the labor and property of millions of citizens, transferred into the Treasury through taxes, that backs up the actual worth of these Treasury obligations. Each time the private corporation called the Federal Reserve Bank of New York “purchases” a billion dollars in Bonds, one billion dollars worth of American labor and property must eventually be confiscated by the Treasury to “cover the check.” It may now be obvious why Thomas Jefferson so vehemently fought the issuance of America’s currency by a private bank. To add to the oppressive nature of our current money system, the Federal Reserve Bank will collect annual interest on the Treasury Bond it holds, further adding to the indebtedness of the American Citizens to the Treasury. One sometimes hears the term “debt money” used to describe the notes issued by the Federal Reserve. Under our present system of money creation, it is a sad fact that each dollar note issued by this corporation places one dollar’s worth of debt onto the backs of the American population.
The effect of the Federal Reserve Bank on our Nation and its citizens has been devastating. since 1913, the value of the American Dollar has fallen to 11 cents. Our gold reserves have vanished. Interest rates rise and fall arbitrarily. A continually-inflated money supply wipes out the value of life-long savings. Within five years, interest payments on the national debt will exceed all revenue collected annually by the Treasury. Sadly, not one in 100,000 Americans would be able to guess the identity of the actual group responsible for these tragic statistics.
The Federal Reserve Notes in our wallets and purses are not Constitutional money. They are in fact pieces of paper which document America’s ever-growing debt to the very clever, very persistent, and very wealthy stockholders of the Federal Reserve Bank.
THAT IS THE TRUTH ABOUT YOUR MONEY