THE FEDERAL RESERVE MUST BE ABOLISHED

Part 1  THE FEDERAL RESERVE SYSTEM,        a privately owned civilian cartel, non-government        agency for the enrichment of a few.        The Federal Reserve System must be abolished for the following reasons: A.  It is incapable of accomplishing its stated objectives; B.  It is a cartel operating against the public interest; C.  It the supreme instrument of usury; D.  It generates our most unfair tax, (inflation); E.  It encourages war; F.  It destabilizes our economy; G.  It is an instrument of totalitarianism;        IT MUST BE DESTROYED, AND SOON!!        It survives by virtue of your Credit Card usage, loans to FDIC, other bank loans via the IMF, and loans to the US and other governments by printing money out of thin air with no history to it.  Bernanke will tell you so, just as he told Congress, "just out of thin air". Part 2.        THE FEDERAL RESERVE        Continued, (Part 2)        Ever since the Civil War (War Between The States, WBTS), Congress has allowed the bankers to completely control financial legislation, (and they have not stopped yet).  The membership of the Finance Committee in the Senate and the Committee on Banking and Currency in the House, has been made up of bankers, their agents and Attorneys.  These committees have controlled the nature of the bills to be reported, and the debates that were to be held on them when they were being considered in the Senate and the House.  No one, not on the committee, is recognized ... unless someone favorable to the committee has been arranged for (and so it goes).        Sen. LaFollette & Congressman Charles Lindbergh (the Father of the aviator) called "the money trust" in a scathing speech, they said it was responsible for deliberately creating economic booms and busts in order to reap the profits of salvaging foreclosed homes, farms & business.  Cong. Lindbergh stated before the House that the Aldrich plan is the Wall Street plan.  It is a broad challenge to the government by the champion of the money trust.  It means another panic, if necessary, to intimidate the people, proposes a plan for the trusts instead.  Cong. Lindbergh stated in a joint Democratic/Republican setting as follows: "under the Federal Reserve Act, panics are scientifically created; the present panic is the first scientifically created one, worked out as we figure a mathematical problem."        The report from the Iron Mountain secret meeting states: "It may be, for instance, that gross pollution of the environment can eventually replace the possibility of mass destruction by nuclear weapons as the principal apparent threat to the survival of the species.  Poisoning of the air, and the principal sources of food and water supply is already well advanced, and at first glance would seem promising in this respect; ... it is more probable, in our judgement, that such a threat will have to be invented.... PART 3        THE FEDERAL RES.               The subject of this part is FIAT money, which is just another way of saying Counterfeit money, that which is without solid Precious Metal backing.  "Fiat money is paper money without precious metal backing and which people are required by law to accept.  It allows politicians to increase spending without raising taxes.  Fiat money is the cause of inflation, and the amount which people in purchasing power is exactly the amount which was taken from them and transferred to their government by this process.  Inflation, therefore, is a hidden tax."  This tax is the most unfair of all because it falls most heavily on those who are least able to pay. Part 4. THE  FEDERAL  RESERVE               A PLAN FOR ELIMINATING THE FED.        Plan Part A.        So much for things NOT to do.  All that would be required to abolish the Federal Reserve System is an act of Congress consisting of one sentence: The federal reserve act and all of its amendments are hereby rescinded.  But that would wipe out our monetary system overnight and create such havoc in the economy that it play right into the hands of the globalists.  They would use the resulting chaos as evidence that such a move was a mistake, and the American people would likely welcome a rescue from IMF/World Bank, (and that would be a really terrible mistake).  We would find ourselves back in the Pessimistic Scenario even though we had done the right thing (and then we be in the tentacles of the UN's Agenda 21 which must be avoided at all cost).        There are certain steps that must precede the abandonment of the FED if we are to have a safe passage.  The first step is to convert our present FIAT(Counterfeit) money into real money.  That means we must create an entirely new money supply which is 100% backed by precious metal-and we must do so within a reasonably short period of time.  To that end, we also must establish the true value of our present FIAT money so it can be exchanged for new money on a realistic basis and phased out of circulation.  Here is how it can be done:        PART B        Step 1.  Repeal The Legal-tender Laws.  The Federal Government will continue accepting Federal Reserve Notes in the payment of taxes, but everyone else will be free to accept them, reject them, or discount them as they wish.  There is no need to force people to accept honest money.  Only FIAT money needs the threat of imprisonment to back it up.  Private institutions should be free to innovate and to compete.  If people want to use Green Stamps or Disney-ride coupons or Bank-of-America Notes as a medium of exchange, they should be free to do so.  The only requirement should be faithful fulfillment of contract.  If the Green-Stamp company says it will give a crystal stamp for seven books of stamp, then it should be compelled to do so.  Disney should be required to accept the coupon in exactly the manner printed the back.  And, if Bank of America tells its depositors they can have their dollars back any time they want , it should required to keep 100% backing (coins or Treasury Certificates) in its vault at all times.  In the transition to a new money, it is anticipated that the old Federal Reserve Notes will continue to be widely used.        Step 2.  Freeze the present supply of Federal Reserve Notes, except for what will be needed in step number six.        Step 3.  Define the "real" dollar in terms of precious-metal content, preferably what it was in the past: 371.25 grains of silver.  It could be another weight of silver or even another metal, but the old silver dollar is a proven winner.        Step 4.  Establish gold as an auxiliary monetary reserve which can be substituted for silver, not at a fixed-price ratio, but at whatever ratio is set by the free market.  Fixed ratios always become unfair over time as the prices of gold and silver drift relative to each other.  Although gold may be substituted for silver at this ratio, it is only silver that is the foundation for the dollar.        Step 5.  Restore free coinage at the U. S. Mint and issue silver "dollars" as well as gold "pieces."  Both dollars and pieces will be defined by metal content, but only coins with silver content can be called dollars, half-dollars, or tenth-dollars (dimes).  At first, these coins will be derived only from metal brought into the Mint by private parties.  They must not br drawn from the Treasury's supply which is reserved for use in step number six.        Step 6.  Pay off the national debt with Federal Reserve Notes created for that purpose.  Creating money without backing is forbidden by the Constitution; however, when no one is forced by law to accept Federal Reserve Notes as legal tender, they will no longer be the official money of the United States.  They will be merely a kind of government script  which no one is required to accept.  Their utility will be determined by their usefulness in payment of taxes and by the public's anticipation of having them exchanged for real money at a later date.  The creation of Federal Reserve Notes, with the understanding that they are not the official money of the United States, would therefore not be a violation of the Constitution.  In any event, the deed is already done.  The decision to redeem government bonds with Federal Reserve Notes is not ours.  Congress decided that long ago, and the course was set at the instant those bonds were issued.  We are merely playing out the hand.  The money will be created for that purpose.  Our only choice is when: now or later.  If we allow the bonds to stand, the national debt will be repudiated by inflation.  The value of the original dollars will gradually be reduced to zero while only the interest remains.  Everyone's purchasing power will be destroyed, and the nation will die.  But if we want not to repudiate the national debt and decide to Pay it off now we will be released from the burden of interest payments and, at the same time, prepare the way for a sound monetary system.        Step 7.  Pledge the government's hoard of gold and silver (except the Military stockpile) to be used as backing for all the Federal Reserve Notes in circulation.  The denationalization of these assets is long overdue.  At various times in recent history, it was illegal for Americans to own gold, and their private holdings were confiscated.  The amount which was taken should be returned to the private sector as a matter of principal. The rest of the gold supply also belongs to the people, because they paid for it through taxes and inflation.  The government has no use for gold or silver except to support the money supply.  The time has come to give it back to the people and use it for that purpose.        Step 8.  Determine the weight of all gold and silver owned by the u. s. Government and then calculate the total value of that supply in terms of real (silver) dollars.        Step 9.  Determine the number of all the Federal Reserve in circulation and then calculate the real-dollar value of each one by dividing the value of the precious by the number of Notes.        Step 10. Retire all Federal Reserve Notes from circulation by offering exchange for dollars at the calculated ratio.  There will be enough gold or silver top redeem every Federal Reserve Note in circulation.  NOTE 1.        Step 11.  Convert all contracts based on Federal Reserve Notes to dollars using the same exchange ratio.  That includes the contracts called mortgages and government bonds.  In that way, monetary values expressed within debt obligations will be converted on the same basis and at the same time as currency.        Step 12.  Issue Silver Certificates.  As the Treasury redeems Federal Reserve Notes for dollars, recipients will have the option of taking coins or Treasury Certificates which are 100% backed.  These Certificates will become the new paper currency.        Step 13.  Abolish the Federal Reserve System.  It would be possible to allow the System to continue as a check clearing-house so long as it not function as a central bank.  A check clearing-house, probably one in each county, will be needed, and the 12 banks that presently own the FED should be allowed to continue performing that service.  However, the Federal Reserve System, as presently chartered by Congress, must be abolished.        Step 14.  Introduce free banking.  Banks should be deregulated and, at the same time, cut loose from protection at taxpayers' expense.  No more bailouts.  Nothing or no-one is too big to fail.  Rescind Amendment # XIV, Section 4.  Recent events shows that the management of taxpayers funds is beyond the capability of Congress.  The FDIC and other government "insurance" agencies should be phased out and their functions turned over to real insurance companies in the private sector.   This will also eliminate the functions of "other" quasi-official agencies from influencing in any way, the Federal Government.  Banks should be required to keep 100% reserves for demand deposits, because that is a contractual obligation.  Al forms of time deposits should be presented to the public exactly as CDs are today. In other words, the depositor should be fully informed that his/her money is invested and he or she will have to wait a specified time before the money can be returned.  Competition will insure that those institutions that best serve their customer's needs will prosper.  Those that do not will fall by the wayside-without the need of an army of bank regulators.        Step 15.  Reduce the size of government.  No solution to our economic problems is possible under socialism.  It is the author's view that the government should be limited to the protection of life, liberty, and property-nothing more.  That means the elimination  of almost all of the socialist-oriented programs that now infest the federal bureaucracy.  If we hope to retain-or perhaps to regain-our freedom, they simply have to go.  To that end, the federal government should sell all assets not directly related to its primary function of protection; it should privately sub-contract as many of its services as possible; and it should greatly reduce and simplify its taxes.        Step 16.  Restore national independence.  A similar restraint must be applied at the international level.  We must reverse all programs leading to disarmament and economic interdependence.  The most significant steps in that direction will be to Get us out of the UN and the UN out of US and stop all foreign aid because all we do is prop up dictators who are our friends as long as we buy them, but that will be just the beginning.  There are hundreds of treaties and administrative agreements that must be rescinded. There may be a few that are constructive and mutually to us and other nations, but the great majority of them will have to go.  That is not because we are isolationist.  It is simply because we want to avoid being engulfed in global tyranny. PART 5.        THE  FEDERAL  RESERVE  SYSTEM               Summary of Chapter  One.        THE BASIC PLAN FOR THE Federal Reserve System was drafted  at secret meeting held in November of 1910 at the private resort of J. P. Morgan on Jekyll Island off the coast of Georgia.  Those who attended represented the great financial institutions of wall street , and, indirectly, Europe as well.  The reason for secrecy was simple.  Had it been known that rival factions of the banking community had joined together, the public would have been alerted to the possibility that the bankers were plotting an agreement in restraint of trade-which, of course, is exactly what they were doing. What emerged was a cartel agreement with five objectives: stop the growing competition from the nation's newer banks; obtain a franchise to create money out of nothing for the purpose of lending; get control of the reserves of all banks so that the more reckless ones would not be exposed to currency drains and bank runs; get the taxpayer to pick up the cartel's inevitable losses; and convince Congress that the purpose was to protect the public. It was realizes that the bankers would have to become partners with the politicians and that the structure of the cartel would have to be a central bank.  The record shows that the FED has failed to achieve its stated objectives.  That is because those were never its true goals.  As a banking cartel, and in the terms of the five objectives stated above, it has been an unqualified success.        Summary of Chapter Two.        Although national monetary events may appear mysterious and chaotic, they are governed by well-established rules which bankers and politicians rigidly follow.  The central fact to understanding these events is /that all the money in the banking system has been created out of nothing through the process of making loan.  A defaulted loan, therefore, costs the bank little of tangible value, because it shows up on the ledger as a reduction in assets without a corresponding reduction in liabilities.   If the bad loans exceed the size of the assets, the bank becomes technically insolvent and must close its doors.  The first rule of survival, therefore, is to avoid writing off large loans, and if possible, to at least continue receiving interest payments on them.  To accomplish that, the endangered loans are rolled-over and increased in size.  This provides the borrower with money to continue paying interest plus fresh funds for new spending.  The basic problem is not solved, but it is postponed for a little while and made worse.        The final solution on behalf of the banking cartel is to have the federal government guarantee payment of the loan should the borrower default in the future.  (the Federal Government has very little money of its own, but there is a tremendous fortune awaiting it in the National Debt fund, that's were your tax payments go).  This is accomplished by convincing Congress that not to do so would result in great damage to the economy and hardship for the people.  From that point forward, the burden of the loan is removed from the bank's ledger and transferred to the taxpayer.  Should this effort fail and the bank be forced into insolvency, the last resort is to use the FDIC to pay off the depositors.  The FDIC is not insurance, because the presence of "moral hazard" makes the thing it supposedly protects against more likely to happen.  A portion of the FDIC funds is derived from assessments against the banks.  Ultimately, however, they are paid by the depositors themselves.  When these funds run out, the balance is provided by the Federal Reserve System in the form of freshly created new money.  This floods through the economy causing the appearance of rising prices but which, in realty, is the lowering of the dollar.  The final cost of the bailout, therefore, is passed to the public ib the form of a hidden tax called inflation.        So much for the rules of the game.  As we go forward we shall look at the scoreboard of the actual play itself.        Summary of Chapter Three.        The game called bailout is not a whimsical figment of the imagination, it is for real.  Here are some of the big games of the season and their final scores.        In 1970, Penn Central railroad became bankrupt.  The banks which lent the money had taken over its board of directors and driven it further into the hole, all the while extending bigger and bigger loans to cover the losses.  Directors concealed reality from the stockholders and made additional loans so the company could pay dividends to keep up the false front.  During this time, the directors and their banks unloaded their stock at unrealistically high prices.  When the truth  became public, the stockholders were left holding the empty bag.  The bailout, which was engineered by the Federal Reserve, involved government subsidies to other banks to grant additional loans.  Then Congress was told that the collapse of Penn Central would be devastating to the public interest.  Congress responded by granting $125 million in loan guarantees so that banks would not be at risk.  The railroad eventually failed anyway, but the bank loans were covered.  Penn Central was nationalized into AMTRAK and continues to operate at a loss.        In 1970, as Lockheed faced bankruptcy,  Congress heard essentially the same story.  Thousands would be unemployed, subcontractors would go out of business, and the public would suffer greatly.  So Congress agreed to guarantee $250 Million in new loans, which put Lockheed 60% deeper into debt than before.  Now that was guaranteeing loans, it had to make sure Lockheed became profitable.  This was accomplished by granting lucrative defense contracts at non-competitive bids.  The banks were paid back.  (Whose tax money was used?)        In 1975, New York City had reached the end of its credit rope.  It had borrowed heavily to maintain an extravagant bureaucracy and a miniature welfare state.  Congress was told that the public would be jeopardized if city services were curtailed, and that America would be disgraced in the eyes of the world.  So Congress authorized additional direct loans up to $2.3 billion, which more than doubled the size of the current debt.  The banks continued to receive their interest.        In 1978, Chrysler was on the verge of bankruptcy.  Congress was informed that the public suffer greatly if the company folded, and it would be a blow to the American way if freedom-of-choice were reduced from three yo two makes of automobiles.  So Congress guaranteed up to $1.5 billion in new loans.  The banks reduced part of their loans and exchanged another portion preferred stock.  News of the deal pushed up the market value of that stock and largely offset the loan write-off.  The banks' previously uncollectable debt was converted into a government backed, interest bearing asset.        In 1972, the Commonwealth Bank of Detroit-with $1.5 billion in assets, became insolvent.  It had borrowed heavily from the Chase Manhattan Bank in New York to invest in high-risk and potentially high-profit ventures. Now that it was in trouble, so was Chase.  The bankers went to Washington and told the FDIC the public must be protected from the great financial hardship that would follow if Commonwealth were allowed to close. So the FDIC pumped in a $60 million loan plus federal guarantees of repayment.  Chase took a minor write down but converted most of its loss into government backed assets.        In 1979, the First Pennsylvania Bank of Philadelphia became insolvent.  With assets in excess of $9 billion, it was 6 times the size of Commonwealth.  It, too, had been an aggressive player in the '70s.  Now the bankers and the Federal Reserve told the FDIC that the public must be protected from the calamity of a bank failure of this size, that the national economy was at stake, perhaps even the entire world.  So the FDIC gave a $325 million loan-interest free for the first year, and at half the market rate thereafter.  The Federal Reserve offered money to other banks at a subsidized rate for the specific purpose of relending to First Penn.  With that enticement, they advanced $175 million in immediate loans plus $1 billion line of credit.        In 1982, Chicago's Continental Illinois became insolvent.  It was the nation's seventh largest bank with $42 billion in assets.  The previous year, its profits had soared as a result of loans to high-risk business ventures and foreign government.  Although it had been the darling of market analysts, it quickly unraveled when its cash flow turned negative, and overseas banks began to withdraw deposits.  It was the world's first electronic bank run.  Federal reserve Chairman Volker (obama's government consultant) told the FDIC that it would be unthinkable to allow the world economy to be ruined by a bank failure of this magnitude.  So, the FDIC assumed $4.5 billion in bad loans and, in return for the bailout, tool 80% ownership of the bank in the form of stock.  In effect, the bank was nationalized, but no one called it that.  The United States government was now in the banking business.        All of the money to accomplish these bailouts was made possible by the Federal Reserve System acting as the "lender of the last resort".  That was one of the purposes for which it had been created.  We must not forget that the phrase "lender of last resort" means that the money is created out of nothing, resulting in the confiscation of our nation's wealth through the hidden tax called inflation. PART 6.        THE  FEDERAL  RESERVE  SYSTEM        The  Summaries of the Chapters               Summary, of Ch. Four.        Our present-day problems within the saving-and-loan industry can be traced back to the Great Depression of the 1930s.  Americans were becoming impressed by the theories 0f socialism and soon embraced the concept that it was proper for government to provide benefits for its citizens and to protect them against economic hardship.        Under the Hoover and Roosevelt administrations, new government agencies were established which purported to protect deposits in the S&Ls and to subsidize home mortgages for the middle class.  These measures distorted the laws of supply and demand and, from that point forward, the housing industry was moved out of the free market and into the political arena.        Once the pattern of government intervention had been established, there began a long, unbroken series of federal rules and regulations that were the source of windfall profits for managers, appraisers, brokers, and builders.  They also weakened the industry by encouraging unsound business practices and high-risk investments.        When these ventures failed, and when the value of real estate began to drop, many S&Ls became insolvent.  The federal insurance fund was soon depleted, and when the government was confronted with its own promise to bail out these companies but not having any money to do so.        The response of the regulators was to create accounting gimmicks whereby insolvent thrifts could be made to appear solvent and, thus, continue in business.  This postponed the inevitable and made matters considerably worse.  The failed S&Ls continued to lose billions of dollars each month and added greatly to the ultimate cost of bailout, all of which eventually have to be paid by the common man out of taxes and inflation, the ultimate cost is estimated at over one trillion dollars.        Congress appears to be unable to act and is strangely silent.  This is understandable.  Many representatives and senators are the beneficiaries of generous donations from the S&Ls.  But perhaps the main reason is that Congress, itself, is the main culprit in this crime.  In either case, the politicians would like to talk about something else.        In the larger view, the S&L industry is a cartel within a cartel. The fiasco could never had happened without the cartel called the Federal Reserve System standing by to create the vast amounts of bailout money pledged by Congress.  If America is to survive as a free nation, her citizens must become far more politically educated than they are at present.)        Summary Ch. Five.  The IMF and the World Bank were created at a meeting of global financiers and held at Bretton Woods, New Hampshire, in 1944.  Their announced  goals were to facilitate international trade and to stabilize rates of national currencies.  The unannounced goals were quite different.  They were the elimination of the gold-exchange standard as the basis of currency valuation and the establishment of world socialism.        The method by which gold was to be eliminated in international trade was to replace it with a world currency which the IMF, acting as the world central bank, would create out of nothing.  The method by which world socialism was to be established was to use the World Bank to transfer money-disguised as loans-to the governments of the underdeveloped countries and to do so in such a way as to insure the demise of free enterprise.  The money was to be delivered from the hands of politicians and bureaucrats into the hands of other politicians and bureaucrats.  When the money comes from government, goes to government, and is administered by government, the result will be the expansion of government.        The theoreticians who dominated the conference at Bretton Woods were the well-known Fabian Socialist from England, John Maynard Keynes, and the Assistant Secretary of the U.S. Treasury, Harry Dexter White.  White became the first Executive Director for the United States at the IMF.        The Fabians are an Elite group of intellectuals who agree with COMMUNISTS as to the goal of socialism but disagreed over tactics.  Whereas Communists advocate revolution by force and violence, Fabians advocate gradualism and the transformation of society through legislation.        It was learned in later years that Harry Dexter White was a member of a Communist espionage ring.  Thus, hidden from view, there was a complex drama taking place in which the two intellectual founders of the Bretton-Woods accords were a Fabian Socialist and a Communist, working together to bring about their mutual goal:   World Socialism!        Capitol for the IMF and the WORLD BANK comes from the industrialized nations, with the United States putting up the most.  Currencies, such as the dollar, yen, mark, and franc, are augmented by many times that amount in the form of "credits."  These are merely promises by member governments to get the money from their taxpayers if the bank gets into trouble with its loans.        The IMF gradually is evolving into a central bank for the World Bank as its lending arm.  It has become the engine for transfer of wealth to underdeveloped countries. (More money for more Dictators I guess. Added By: CLM Sr)  This has lowered the economic level of the donating countries but it has not raised the level of the recipients. The money has simply disappeared down the drain of political corruption and waste.        Summ'y Ch. Six. (When you use a credit card, the dealer has to pay a fee to the issuance bank who in turn pays a fee to the FED who pays some to the IMF and a fee to the CFR.  You pay all this thru the business deals who passes it on to you in the price you pay for the merchandise.  In addition we have to pay the IRS.  They pay the Treasury with some, the FED with some. The individual fees are very low.  They accumulate into trillions of dollars from the whole country, as a "hole." Added by: CLM Sr.)  The international version of the game called Bailout is similar to the domestic version in that the overall objective is to have the taxpayers cover the defaulted loans so interest payments can continue to the banks.  The differences are: (1) instead of justifying this as protecting the American public, the pretense is that it is to save the world from poverty; and (2) the main money pipeline goes from the Federal Reserve through the IMF/World Bank. (for further distribution to debt ridden countries, as loans, making the debt even bigger. CLM Sr)  Otherwise the rules are basically the same.        There is another dimension to the game, however, that involves more than profits and scam.  It is the conscious and Deliberat e evolution of the IMF/World Bank into a world central bank with the power to issue a world fiat currency.  And that is an important step in an even larger plan to build a true world government within the framework of the United Nations. Economically strong nations are not candidates for surrendering their sovereignty to a world government.  Therefore, through "loans" that will never be paid back, the IMF/World Bank directs the massive transfer of wealth from the industrialized nations to the less developed nations.  This on-going process eventually drains their economies to the point where they also will be in need of assistance . (And States are broke, the federal Treasury is broke, the national debt is in debt for trillions, like 18 trillion dollars of national debt, so far, and a major depression sets in. CLM Sr.).  No longer capable of independent action, they will accept the loss of sovereignty in return for international aid. (Witness the amt of socialist nations that are now in serious trouble, France, Turkey, Italy, Germany, England, Ireland, the frugal Scots, and US. Clm Sr.).   The less developed countries, on the other hand, are being brought into the New World Order along an entirely different route many of these countries are ruled by petty tyrants who care little for their people except how to extract more taxes fro, them without causing a revolt.  Loans from the IMF/World Bank are used primarily to perpetuate themselves and their ruling parties in power-and that is exactly what the IMF/World Bank intends.  Rhetoric about helping the poor notwithstanding, the true goal of the transfer of wealth disguised as "loans" is to get control over the leaders of the less developed countries.  (The US has given Mubauric of Egypt over 46 million foreign aid dollars of which he still had in his foreign bank accounts when he was deposed. CLM Sr).  After these despots get used to the taste of such an unlimited supply of sweet cash, they will never be able to break the habit.  They will be content-already are content to become little gold-plated cogs in the giant machinery of world government.  Ideology means nothing to them: capitalist communist, socialist, fascist , what it matter so long as the money keeps coming.  The IMF/World Bank literally is buying these countries and using our money to do it.        The recent inclusion Red China and the former Soviet bloc on the list of IMF/World Bank recipient countries signals the final phase of the game.  Now that Latin America and Africa have been "purchased" into the New World Order, this is the final frontier.  In a relatively short time span, China, Russia, and the eastern European countries have now become the biggest borrowers and, already, they are in arrears on their payments.  This is where the action will lie in the months ahead. [Now, think of this, we have been informed that we are broke.  We have heard this many times.  Yet, we continue sending huge "loans" in the form of foreign aid to despots all around the world!  Obama says that if Egypt does not shape up we are going to withhold the payments of "foreign" aid.  As Bernanke stated in a hearing by Ron Paul, "Q uestion: where did you get the 39 million dollars from. Answer: "We just printed it out of thin air"!!!  Yes, he actually said that. Now, is the money we owe to China, actually our money being repaid back to us???  Or are the loans just keep getting bigger and all we keep is more an more interesr???? More Later. Chet.]        Summ'y Ch. Seven.  Knowledge of the nature of money is essential to an understanding of the Federal Reserve.  Contrary to common belief, the topic is neither mysterious nor complicated.  Money is defined as anything which is accepted as a medium of exchange. There are four kinds of money: commodity, receipt, fiat, and fractional.  Precious metals were the first commodity money to appear in history and ever since have been proven by actual experience to be the only reliable base for an honest monetary system.  Gold, as the basis of money, can take several forms: bullion, coins, and fully backed paper receipts.  Man has been plagued throughout history with the false theory that the quantity of money is important, specifically that more money is better than less.  This has ked to perpetual manipulation and expansion of the money supply through such practices as coin clipping, debasement of the coin content, and, in later centuries, the issuance of more paper receipts than there was gold to back them.  In every case, these practices have led to economic and political disaster.  In those rare instances where man has refrained from manipulating the money supply and has allowed it to ne determined by free-market production of the gold supply, the result has been prosperity and tranquility.        Summ'y of Ch. Eight.  Fiat money (Counterfeit)  is paper money without precious-metal backing which people are required by law to accept. The first recorded appearance of fiat money was in thirteenth century China, but its use on a major scale did not occur until colonial America.  The experience was disastrous, leading to massive inflation, unemployment, loss of property, and political unrest.  During one period when Bank of England forced the colonies to abandon their fiat money, general prosperity quickly returned.  The Revolutionary War brought fiat money back to the colonies with a vengeance.  The economic chaos that resulted led the colonial governments to impose price controls and harsh legal tender laws, neither of which was effective.        Fractional money is defined as paper money with precious metal backing for part, not all, of its stated value.  It was introduced in Europe when goldsmiths began to issue receipts for gold which they did not have, thus only a fraction of their receipts was redeemable.  Fractional money always degenerates into pure fiat money.        Summary of Ch. Nine.  The business of banking began in Europe in the fourteenth century.  Its function was to evalute, exchange, and safeguard people's coins.  In the beginning, there were notable examples of totally honest banks which operated with remarkable efficiency considering the vast variety of coinage they handled.  They also issued paper receipts which were so dependable they freely circulated as money and cheated no one in the process.  But there was a great demand for more money and for more loans, and the temptation soon caused the bankers to seek easier paths.  They began lending out pieces of paper that said they were receipts, but which in fact were counterfeit.  The public could not tell one from the other and accepted both of them as money.  From that point forward, the receipts exceeded the gold held in reserve, and the age of fractional-reserve banking had dawned. This led immediately to what become an almost unbroken record from then to the present" a record of inflation, booms, and busts, suspension of payments, bank failures, repudiation of currency, and recurring spasms of economic chaos. (As we have right now, the boom is starting. CLM Sr).        The Bank of England was formed in 1694 to institutionalize fractional-reserve banking.  As the world's first central bank, it introduced the concept of a partnership between bankers and politicians. The politicians would receive spendable money [created out of nothing by the bankers] without having to raise taxes.  In return, the bankers would receive a commission on the transaction-deceptively called interest-which would continue in perpetuity.  Since seemed to be wrapped up in the mysterious rituals of banking, which the common man was not expected to understand, there was practically no opposition to the scheme.  The arrangement proved so profitable to the participants that it soon spread to many other countries in Europe and eventually, spread to the United States.        Summary of Ch. Ten.  The American dollar has no intrinsic value.  It is a classic example of fiat money with no limit to the quantity that  can produce be produced. Its primary value lies in the willingness of people to accept it and, to that end, legal tender laws require them tp do so.  It is true that our money is created out of nothing, but it is more accurate to say that it vis based upon debt.  In one sense, therefore, our money is created out of less than nothing.  The entire money supply would vanish into bank vaults and computer chips if all debts were repaid.  Under the present System, therefore, our leaders cannot allow a serious reduction in either the national or consumer debt.  Charging interest on pretended loans is usury, and that ha become institutionalized under the Federal Reserve System .  The Mandrake Mechanism (easily explained and understood in Ch. 10. CLM Sr.) understand by which the FED converts debt into money may seem complicated at first, but it is simple if one remembers that the process is not intended to be logical but to confuse and to deceive.  The end product of the Mechanism is artificial expansion of the money supply, which is the root cause of the hidden tax called inflation.  This expansion then leads to contraction and, together, they produce the destructive boom-bust cycle that has plagued mankind throughout history wherever fiat money has existed. ADDENDUM: DEBT CANCELLATION PROGRAMS.   Because banks lend money that does not exist prior to the transaction, many debtors have concluded they are not obligated to repay.  This is a compelling concept in view of the fact that bank and credit-card (FED. CLM Sr) contracts typically lead customers to think they are borrowing someone else's money, which is why they are willing to pay interest.  When challenged in court, these contracts often are judged to be fraudulent, and now companies offering "debt-cancellation" services to challenge these contracts with the end in mind that debts will be cancelled. A discussion of the pros and cons of these programs is beyond the scope of this work, but interested parties are invited to read or view a video of the author's analysis at the following web site: http://www.freedom-force.org/freedom,cfm?fuseaction=issues. (A short Bio of manipulative  players: (CLM Sr)        Cecil Rhodes made one of the world's greatest fortunes of the 19th century.  Financed by Nathan Rothschild and the Bank of England, he established a monopoly over the diamond output of South Africa and most of the gold as well.  He formed a secret society which included many of the top leaders of British government.  Their elitist goal was nothing less than world domination and the establishment of a modern feudalist society controlled by themselves through the world's central banks.  In America, the Council on Foreign Relations (CFR-headed up by Nelson Rockefeller.  CLM Sr.) was an outgrowth of that group        August Belmont came to New York in 1837 as the financial agent of the Rothschilds.  He funneled vast amounts of capitol into American investments, often without anyone knowing whose money he was spending.  The purpose of concealment was to blunt the growing anti-Rothschild resentment that was prevalent in Europe as well as in America.  When his affiliation became commonly known, his usefulness came to an end and he was replaced by J. P. Morgan.        J. P. Morgan, Sr.  Was brought into banking by his father, Junius Morgan, in England.  The Morgans were friendly competitors with the Rothschilds and became socially close to them.  Morgans London-based firm was saved from financial ruin in 1857 by the Bank of England over which the Rothschilds held great influence.  Thereafter, Morgan appears to have served as a Rothschild financial agent and went to great length to appear totally American.        John D. Rockefeller made his initial fortune in oil but soon gravitated into banking and finance.  His entry into the field was not welcomed by Morgan, and they became fierce competitors.  Eventually, they decided to minimize their competition by entering joint ventures.  In the end, they worked together to create a national banking cartel called Federal Reserve System. (The Federal Reserve System was created in great secrecy in 1910 on Jekyll Island, off Georgia. CLM Sr.)        Jacob Schiff was head of the New York investment firm, Kuhn, Loeb & Co.  He was one of the principal backers of the Bolshevik revolution and personally financed Trotsky's trip from New York to Russia.  He was a major contributor to Woodrow Wilson's presidential campaign and an advocate for passage of the Federal Reserve Act.        Harry Dexter White (A strong openly admitted Communist), and, John Maynard Keynes, ( a strong openly fascist), were the theoreticians who guided the 1944 Bretton Woods Monetary Conference at which the IMF/World Bank was created.  Keynes was a member of the Fabian Society.  They shared the same goal of international socialism.  The IMF/World Bank has furthered that goal ever since.        Raymond Robins was the Chairman of the Progressive Party convention in Chicago in 1912.  He later became head of the "subversive Red Cross" Mission in Russia after the Bolshevik revolution.  Although he represented Wall Street interests, he was a disciple of Cecil Rhodes and was an anti-capitalist in his beliefs.  He held great influence over Lenin.        Edward Mandell House was the man who secured Woodrow Wilson's nomination for President and who, thereafter, became the hidden power at the White House.  He negotiated a secret agreement to draw the U. S. Into World War One at the very time Wilson was campaigning on the promise to keep America out of the war.  On behalf of Wall Street, House lobbied Congress to pass the Federal Reserve Act.        Carroll Quigley was a professor of history at Georgetown University. His book, Tragedy and Hope, revealed that the Council on Foreign Relations (CFR) is an outgrowth of the secret society formed by Cecil Rhodes.  He wrote the history of how an international network of financiers has created a system of financial control able to dominate the political systems of all countries through their central banks.  He named names and provided meticulous documentation.  His book was suppressed. [I had a copy. CLM Sr]        Winston Churchill was the first Lord of the Admiralty in World War One.  As the Lusitania entered into an area where a German U-boat was known to be operating, he called off the destroyer escort that had been assigned to protect her.  He calculated that the destruction of a British ship with U. S. Passengers aboard would inflame American passions against Germany and help create a political climate for coming into the war.        Lord Mersey was put in charge of an official inquiry into the sinking of the Lusitania.  He was instructed by the Admiralty to place the entire blame on the Captain of the ship.  Mersey obeyed his orders but refused payment for his service and declined to accept further judicial assignments.  In later years, he said the affair "was a damn dirty business.") PART Seven.     THE  FEDERAL  RESERVE  SYSTEM        The  Summaries of the Chapters               Chapter Eleven.  By the end of the eighteenth century, the House of Rothschild had become one of the most successful financial institutions the world has ever known.  Its meteoric rise can be attributed to the great industry and shrewdness of the five brothers who established themselves in various capitols of Europe and forged the world's first international financial network.  As pioneers in the practice lending money to governments, they soon learned that this provided unique opportunities to parlay wealth into political power as well.  Before long, most of the princes and kings of Europe had come within their influence.        The Rothschilds also had mastered the art of smuggling on a grand scale, often with the tacit approval of the governments whose laws they violated.  This was perceived by all parties as an unofficial bonus for providing needed funding to those same governments, particularly in time of war.  The fact that different branches of the Rothschild network also might be providing funds for the enemy was pragmatically ignored.  Thus, a time-honored practice among financiers was born: pro-fiting from both sides.        The Rothschilds operated a highly efficient intelligence gathering system which provided them with advance knowledge of important events, knowledge which was invaluable for investment decisions.  When an Rothschild courier delivered the first news of the Battle of Waterloo, Nathan was able to deceive the London bond traders into a selling panic, and that allowed him to acquire the dominant holding of England's entire debt at but a tiny fraction of its worth.        A study of these and similar events reveals a personality profile, not just of the Rothschilds, but of that special breed of international financiers whose success typically is built upon certain character traits. Those include cold objectivity, immunity to patriotism, and indifference to human condition.  That profile is the Basis for proposing a theoretical strategy, called the Rothschild Formula, which motivates such men to propel governments in to war for the profits they yield.  This formula most likely has never been consciously phrased as it appears here, but subconscious motivations and personality traits work together to implement it nevertheless.  As long as the mechanism of central banking exists, it will be to such men an irresistible temptation to convert debt into perpetual war and war into perpetual debt.  In the following chapters we shall track the distinctive footprint of the Rothschild Formula as it leads up to our own doorstep in the present day.        Summary of Ch. Twelve.  To finance the early stages of World War One, England and France had borrowed heavily from investors in America and had selected the House of Morgan as sales agent for their bonds.  Morgan also acted as their U. S. Purchasing agent for war materials, thus profiting from both ends of the cash flow: once when the money was borrowed and again when it was spent.  Further profits were derived from production contracts within the Morgan orbit.  But the war began to go badly for the Allies when Germany's submarines took virtual control of the Atlantic shipping lanes. As England and France moved closer to defeat or a negotiated peace on Germany's terms, it became increasingly difficult to sell their bonds.  No bonds meant no purchases, and the Morgan cash flow was threatened. Furthermore, if the previously sold bonds should go into default, as they certainly would in the wake of defeat, the Morgan consortium would suffer gigantic losses.        The only way to save the British Empire, to restore the value of the bonds, and to sustain the Morgan cash flow was for the United States government to provide the money.  But, since neutral nations were prohibited from doing that by treaty, America would have to be brought into the war.  A secret agreement to that effect was made between British officials and Colonel House, with the concurrence of the President.  From that point forward, Wilson began to pressure Congress for a declaration of war.  This was done at the very same time he was campaigning for reelection on the slogan "he kept us out of war."  Meanwhile, Morgan purchased control over major segments of the "news" media and engineered a nation-wide editorial blitz against Germany, calling for war as an act of American patriotism.        Morgan had created an international shipping cartel, including Germany's merchant fleet, which maintained a near monopoly on the high seas. Only the British Cunard Lines remained aloof.  The Lusitania was built to military specifications and was registered with the British Admiralty as an armed auxiliary cruiser.  She carried passengers as a cover to conceal her real mission, which was to bring contraband war materials from the United States.  This fact was known to Wilson and others in his administration but they did nothing to stop it.  When the German embassy tried to publish a warning to American passengers, the State Department intervened and prevented newspapers from printing it.  When the Lusitania left New York harbor on her final voyage, she was virtually a floating ammunition depot. The British knew that to draw the United States into the war would mean the difference between defeat and victory, and anything that could accomplish that was proper-even the coldly calculated sacrifice of one of her great ships with Englishmen aboard.  But the trick was to have Americans on board to create the proper emotional climate in the United States.  As the Lusitania moved into hostile waters, where a German U-boat was known to be operating, First Lord of the Admiralty, Winston Churchill, ordered her destroyer protection to abandon her.  This, plus the fact that she fad been ordered to travel at reduced speed, made her an easy target.  After the impact of one well placed torpedo, a mighty second explosion  from within ripped her apart, and the ship that many believed could not be sunk, gurgled to the bottom in less than eighteen minutes.        The deed had been done, and it sent in motion great  waves of revulsion against the Germans.  These waves eventually flooded through Washington and swept the United States into war.  Within days of the declaration, Congress voted $1 billion in credit for England and France. $200 million was sent to England immediately and was applied to the Morgan account.  The vast quantity of money needed to finance the war was created by the Federal reserve System, which means it was collected from Americans through that hidden tax called inflation.  Within just five years, this tax had taken fully 0ne-half of all they had saved.  The infinitely higher cost in American blood was added to the bill.        Thus it was that the separate motives of such diverse personalities as Winston Churchill, J.P. Morgan, Colonel  House and Woodrow Wilson all found common cause in bringing America into World War 1.  Churchill maneuvered for  military advantage, Morgan sought the profits of war, House schemed for political power, and Wilson dreamed of a chance to dominate a post-war League of Nations. (Colonel House was an assumed title of "Colonel".  He had no military background at all. CLM Sr.) The German Embassy attempted to place ads in 50 newspapers warning that the Lusitania was a target of war, but the U.S. Government prevented them from being printed (censorship?) Except for this one which was run in the Des Moines Register.  When the ship was sunk with 195 Americans (Women, Little Children, Fathers) aboard, it became the center of a national campaign to generate emotional support for coming into the war.        Summary of Ch.13.  The Bolshevik revolution was not a spontaneous uprising of the masses. It was planned, financed, and orchestrated by outsiders. Some of the financing came from Germany which hoped that internal problems would force Russia out of the war against her.  But most of the money and leadership came from financiers in England and the United States. It was a perfect example of the Rothschild formula in action.        This group centered mainly around a secret society created by Cecil Rhodes, one of the world's wealthiest men at the time.  The purpose of that group was nothing less than world dominion and the establishment of a modern feudalist  (See Agenda 21 of the UN'S master plan for our total subjugation. CLM Sr.)  society controlled by the world's central banks.  Headquartered in England, the Rhodes inner-most directorate was called the Round Table.  In other countries, there were established subordinate structures called Round Table Groups.  The Round-Table Group in the United States became known as the Council on Foreign Relations.  The CFR, which was initially dominated by J.P. Morgan and later by the Rockefellers, is the most powerful group in America today.  It is even more powerful than the federal government, because almost all of the key positions in government are held by its members.  In other words, it is the United States government. (Ask Gingrich and the three,  Rockefellers, one is in the house. CLM Sr.)        Agents of these two groups cooperated closely in pre-revolutionary Russia and particularly after the Tsar was overthrown.  The American contingent in Russia as a Red Cross mission doing humanitarian work. Cashing in on their close friendship with Trotsky and Lenin, they obtained profitable business concessions from the new government which returned their initial investment Many times over.        Summary of Ch. Fourteen.  The Bolshevik revolution was a coup d' etat in which a radical minority captured the Russian government from the moderate revolutionary majority.  The Red Cross Mission of New York financiers threw support to the Boksheviks and, in turn, received economic rewards in the form of rights to Russia's natural resources plus contracts for construction and supplies.  The continued participation in the economic development of Russia and Eastern Europe since that time indicates that this relationship has survived to the present day.   These financiers are not pro-Communist.  Their motivation is profit and power.  They are now working to bring both Russia and the United States into a world which they expect to control. (See the UN's agenda 21 for our future of enslavement. CLM Sr.)        War and threats of war are tools to prod the masses toward the acceptance of that goal.  It is essential, therefor, that the United States and the industrialized nations of the world have credible enemies.  As these words are being written, Russia is wearing the mask of peace and cooperation.  But we have seen that before.  We may yet see a return of the Evil-Empire when the time is right.  U.S. government and megabank funding, first of Russian, and now of Chinese and Middle-East military capabilities, cannot be understood without this insight.        Summary of Ch. Fifteen.  The Constitution prohibits both the States and the federal government from issuing fiat money.  This was the deliberate intent of the Founding Fathers who had bitter experience with fiat money before and especially during the Revolutionary War.  In response to the need to have a precisely defined national monetary unit, Congress adopted the Spanish dollar then currently in use and defined the content of that dollar to be 371.25 grains of pure silver.  With the establishment of a federal mint, American silver dollars were issued in accordance with that standard, and gold eagles also were produced which were then equal in value to ten silver dollars.  Most importantly, free coinage was established wherein Americans were able to convert their raw silver and gold into national coins officially certified by the government as to their intrinsic value.  The product of these measures was a period of sound money and great economic prosperity, a period that would come to an end only when the next generation of Americans forgot to read their history and returned to the use of paper money and "bills of credit."        The monetary plan laid down by the Founding Fathers was the product of collective genius.  No where in history can one find so many men in one legislative body who understood the fraud inherent in fiat money and the hidden-taxation nature of inflation.  There was never such an assembly of scholars and statesmen determined to set a safe course for the nation of their own creation.  Literally, they handed us a treasure map.  All we had to do was follow it to economic security and prosperity.  But, as we shall see in the following sections , that map was discarded when the lessons of history died out with those who lived it.        Summary of Ch. Sixteen.  America had its first central bank even before the Constitution was drafted.  It was called the Bank of North America and was chartered by the Continental Congress in1781.  Modeled after the Bank of England, it was authorized to issue more paper promissary notes than it held in deposits.  In the beginning, these notes were widely circulated and served as a national currency.  Although the bank Was essentially a private institution, it was designed for the purpose of creating money to lend to the federal government, which it did from the start.        The Bank of North America was riddled with fraud, and it quickly fell into political disfavor.  Its inflated bank notes eventually were rejected by ordinary citizens and ceased to circulate outside of the bank's home city of Philadelpia.  Its charter was allowed to expire and, in 1783, it was converted into a purely commercial bank chartered by the State of Pennsylvania.        The advocates of fiat money did not give up.  In 1791, the First Bank of the United States (America's second central bank) was created by Congress.  The new bank was a replica of the first, including fraud.  Private investors in the bank were among the nation's most wealthy and influential citizens, including some Congressmen and Senators.  But the largest investment and the most powerful influence in the new bank came from the Rothschilds in Europe. The Bank set about immediately to serve its function of creating money for the government. This led to a massive inflation of the money supply and rising prices.  In the first five years, 42% of everything people had saved in the form of money was confiscated through the hidden tax called inflation.  This was the same phenomenon that had plagued the colonies less than two decades earlier, but instead of being caused by printing-press money, it was now fueled by fractional-reserve bank notes created by a central bank.        As the time for renewal of the bank's charter approached , two groups with opposite intentions became strange political allies against it: the Jeffersonians who wanted sound money; and the frontier banks, called wildcatters, who wanted unlimited license to steal.  On January 24, 1811, the charter was defeated by one vote in the Senate and one vote in the House. The central bank was gone, but the wildcatters were everywhere.        The war of 1812 was not popular among the American public, and funding would have been impossible through taxes alone.  The government chose to fund the war by encouraging wildcat banks to purchase its war-debt bonds and convert them into bank notes which the government then used to purchase war material.  Within two years, the nation's money supply had tripled, and so had prices.  Once again, the monetary and political scientists had succeeded in fleecing the American public of approximately 66% of all the money they held during that period.  And that was on top of the 42% fleecing they got earlier by the Bank of the United States.        Summary of the Ch. Seventeen.  The government had encouraged widespread banking fraud during the War of 1812 as an expedient for paying its bills, and this had left the nation in monetary chaos.  At the end of the War instead of allowing the fraudulent banks to fall and letting the free market heal the damage, Congress decided to protect the banks, to organize the fraud, and to perpetuate the losses.  It did this by creating the nation's third central bank called the Second Bank of the United States. [WON'T WE EVER LEARN ANYTHING? Clm Sr.]        The new Bank was almost an exact carbon copy of the previous one. It was authorized to create money for the federal government and to regulate banks.  It influenced larger amounts of capital and was better organized across state lines than the old bank.  Consequently its policies had a greater impact on the creation and extinguishing of the nation's money supply.  For the first time in our history, the effects began to ricochet across the entire country at once instead being confined to geographical regions.  The age of the boom-bust cycle had at last arrived in America.        In 1820, public opinion began to swing back in favor of the sound-money principles espoused by the Jeffersonian Republicans.  But since the Republican Party had by then abandoned those principles, a new coalition was formed, headed up by Martin Van Buren and Andrew Jackson, called the Democrat Party.  One of its primary platforms was the abolishment of the Bank.  After Jackson was elected in 1828, he began in full interest to bring that about.        The head of the Bank was a formidable adversary by the name of Nicholas Biddle.  Biddle, not only possessed great personal abilities, but many members of Congress were indebted to him for business favors. Consequently, the Bank had many political friends.        As Jackson's first term of office neared its end, Biddle asked Congress for an early renewal of the Bank's charter, hoping that Jackson would not risk controversy in a reelection year.  The bill was easily passed, but Jackson accepted the challenge and vetoed the measure.  Thus, a battle over the Bank's future became the primary presidential issue. Jackson was reelected by a large margin, and one of his first acts was to remove federal deposits from the Bank and place them into private, regional banks. Biddle counterattacked by contracting credit and calling in loans. This was calculated to shrink the money and trigger a national panic-depression, which it did.  He publicly blamed the downturn on Jackson's removal of deposits.        The plan almost worked.  Biddle's political allies succeeded in having Jackson officially censured in the Senate.  However, when the truth about Biddle's strategy finally leaked out, it backfired against him.  He was called before a special Congressional investigative committee to explain his actions, the censure against Jackson was rescinded, and the nation's third central bank passed into oblivion.        Summary of Ch. Eighteen.  The Second Bank of the United States was dead, but banking was very much alive.  Many of the old problems continued, and new ones arrived.  The issuance of banknotes had been severely limited, but that was largely offset by the increasing use of checkbook money, which had no limits at all on its issue.  When the Second Bank of the United States slipped into history, the nation was nearing the end of the boom phase of a boom/bust cycle. When the inevitable contraction of the money supply came, politicians began to offer proposals on how to infuse stability into the banking system.  None dealt with the real problem, which was fractional-reserve banking itself.  They concentrates instead on proposals on how to make it work.  All of these proposals were tried and they failed.        These years are sometimes described as a period of free banking, which is an insult to the truth.  All that happened was that banks were converted from corporations to private associations, a change in form, not substance.  They continued to be burdened by government controls, regulations, supports, and other blocks against the free market.        The economic chaos and conflict of this period was a major cause of the War Between The States (Called Civil War by yankees. CLM Sr.) Lincoln made it clear during his public speeches that slavery was not the issue. The basic problem was that North and South were dependent on each other for trade.  The industrialized North sold its products to the South.  The South, (a farming large community. CLM Sr.) Sold its cotton to the North.  The South also had a similar trade with Europe (and Africa. CLM Sr.) And that was an annoyance to the North.  Europe was selling many products at lower prices, and the North was losing market share.  Northern politicians passed protectionist legislation putting import duties on industrial products. This all but stopped the importation of European goods and forced the South to buy from the North at higher prices.  Europe retaliated by curtailing the purchase of American cotton.  That hurt the South even more.  It was a case of legalized plunder, and the South wanted out.        Meanwhile, there were powerful forces in Europe that wanted to see America embroiled in a civil war.  If she could be split into two hostile countries, there would be less obstacle to European expansion on the North American continent.  France was eager to capture Mexico and graft it onto a new empire which would include many Southern States as well.  England, on the other hand, military forces poised along the Canadian border ready for action.  Political agitators, funded and organized from Europe, were active on both sides of the Mason-Dixon line, the issue of slavery was but a ploy. America had become a target in a ruthless game of world economics and politics.        Summary of Ch. 19.  It is now  [time to] to leave this tragic episode and move along.  So let us summarize.  America's bloodiest and most devastating war was fought, not over the issue of freedom versus slavery, but because of clashing economic interests.  At the heart of this conflict were questions of legalized plunder, banking monopolies, and even European territorial expansion into Latin America.  The boot print of the Rothschild formula is unmistakable across the graves of American soldiers on both sides.        In the North, neither greenbacks, taxes, nor war bonds were enough to finance a war.  So a national banking system was created to convert government bonds into fiat (counterfeit) money, and the people lost over half their monetary assets to the hidden tax of inflation.  In the South, printing presses accomplished the same effect, and the monetary loss was total.        The issuance of the Emancipation Proclamation by Lincoln and the naval assistance offered by Tsar Alexander, II, were largely responsible for keeping England and France from intervening in the war on the side of the Confederacy.  Lincoln was assassinated by a member of the Knights of the Golden Circle, a secret society with rumored ties to American and British politicians and British financiers.  Tsar Alexander was assassinated a few years later by a member of the People's Will, a Nihilist secret society in Russia with rumored ties to financiers in New York City, specifically, Jacob Schiff and the firm of Kuhn. Loeb & Company.        As for the Creature of central banking, there had been some victories and some defeats.  The greenbacks had for a while deprived the bankers of their override on a small portion of government debt, but the National Banking Act quickly put a stop to that.  Furthermore, by using government bonds as backing for the money supply, it locked the nation into perpetual debt.  The foundation was firmly in place, but the ultimate structure still needed to be erected.  The monetary system was yet to be concentrated into one central-bank mechanism, and the control was yet to be taken away from the politicians and placed into the hands of the bankers themselves.  It was time for the creature to visit Congress. (Note: A final listing of those for or against this gigantic Ponzi scheme. The Rape of a nation:        President Andrew Jackson put his political career on the line in 1832 by vetoing renewal of the charter for the Second bank of the United States.  He called the bank a monster and declared: "I am ready with the screws to draw every tooth and then the stumps."  Voters approved and re-elected him by a large margin. The bank's charter was not renewed and the Bank collapsed.        Nicholas Biddle was head of the Second Bank of the United States. With so many Congressmen and Senators financially beholden to him, he wielded great politically power.  He deliberately created a Banking panic and a depression for the purpose of frightening the voters and blaming Jackson's anti-bank policy.  Biddle declared: "all other banks and all the merchants may break, but the Bank of the United States shall not break."  In the end, he lost the contest.  The bank's charter expired in 1836.        President Abraham Lincoln had an insurrection on his hands, in the North as well as in the South in the "Civil War".  In 1863 anti-draft riots occurred in Ohio, Illinois, and New York, over 1,000 civilians were killed or wounded by federal soldiers.  The "civil War" was started over economic issues, not over slavery.  The war was not popular in the North until the issue of slavery was added at a later time to turn it into a moral crusade.        Tsar Alexander II dispatched his Baltic fleet to Alexandria, his Adriatic to San Francisco, where they were committed to assist the Union's blockade against the South. This had little to do with freeing the slaves. France had designs on Mexico, and England wanted a divided America.  Russia was merely reacting against France and England who were her enemies.  The powers of Europe were deeply involved in the American 'Civil War' for purposes of their own.        Montagu Norman was head of the Bank of England during the first years of the Federal Reserve.  He traveled to the U.S. many times to meet in secret with Benjamin Strong, head of the Federal Reserve.  Strong agreed to use the Federal Reserve System to unofficially help Great Britain meet its financial obligations, and billions of dollars subsequently flowed from the U.S.  It was that outflow that set the stage for America's great depression of the 1930s.        William Wentworth met Norman aboard ship in 1929.  Norman told him in confidence that there would soon was going to be a"shake-put" in the U. S. Financial markets.  The stock-market crashed just a few months later.        John D. Rockefeller, III, presented a check in the amount of $8,500,000 to Trygve Lie, First Secretary-General of the United Nations. Mr. Lie was a publicized, openly,  member of the Communist Party.  John D. Made his fortune in Continental oil (CONOCO, TEXACO, and others. CLM Sr.) The date is 25 March, 1947.  The money is for buying the land on Manhattan Island which will house the UN building.  Through the Council on Foreign Relations (CFR), the Rockefellers have been in the forefront of the drive for a world government which is to be built  upon the principles of feudalism and socialism.  They have no doubt they and their counterparts in other countries will be in control.  He must be arrested, tried for treason, and if found guilty by an impartial jury, be disciplined IAW existing law. CONOCO must be broken up and sold to non-Rockefeller interests.        William Jennings Bryan was one of the most powerful Democrats in Congress.  He opposed the Federal Reserve Act because it would privately issue money rather than through the government.  He was fooled into supporting the bill when phony compromises were made which gave the appearance of public control and government issue but which, in fact, did neither.  Bryan was also rewarded with an appointment as Secretary of State. He became disillusioned by the duplicity of his own government and resigned after Wilson failed to warn the public that the Lusitania was carrying munitions. He complained that it was "like putting women and children in front of an army."        Alan Greenspan was an eloquent spokesman for the gold standard and a critic oh the system's subservience to the banking cartel.  That was in 1966.  After he became a director of J. P. Morgan & Company and was appointed Chairman of the Federal Reserve in 1987, he became silent on the issues and did nothing to anger the Creature he now served.  Like Bryan even the best of men can be corrupted by the rewards of politics.  He forbade his ethics, his morals, his self respect, integrity; all for the dollar.        John Kenneth Galbraith, well known historian and professor at Harvard, has verified that he was asked to be a part of the team that put together The Report from Iron Mountain, a think tank study commissioned by the Defense Dept.  The purpose of the study was to explore novel ways of keeping the masses in subservience.  When a copy of the Report was leaked to the press, the government claimed it was a hoax.  Galbraith confirmed that it was totally authentic.) PART 8.        THE  FEDERAL  RESERVE  SYSTEM        The  Summaries of the Chapters        of "The Creature From Jekyll Island"        Written by: G. Edward Griffin, Author.        Prepared & Offered by Chester L. McWhorter, Sr        All text is as written by the Author except where indicated.        Summary of Ch. 20.  After the "Civil War" [War Between The States (WBTS)], America experienced of expansions and contractions of the money supply leading directly to economic booms and busts.  This was the result of the creation of fiat [Counterfeit] money by a banking system which, Far from being free and competitive , was a half-way house to central banking. Throughout the chaos, one banking firm, the House of Morgan, was able to prosper out of the failure of others.  Morgan had close ties with the financial structure and culture of England and was, in fact, more British than American.  Events suggest the possibility that Morgan and Company was in concealed partnership with the House of Rothschild throughout most of this period.        Benjamin Strong was a Morgan man and was appointed as the first Governor of the Federal Reserve Bank of New York which rapidly assumed dominance over the System.  Strong immediately entered into close alliance with Montagu Norman, Governor of the Bank of England, to save the English economy from depression.  This was accomplished by deliberately creating inflation in the U.S. which caused an outflow of gold, a loss of foreign markets, unemployment, and speculation in the stock market, all of which were factors that propelled America into the crash 1929 and the great depression of the 30s.        Although not covered ln this [summary], it must be remembered that the same forces were responsible for American involvement in both world wars to provide the economic and military resources England needed to survive. Furthermore, the key players in this action were men who were part of the network of a secret society established by Cecil Rhodes for the expansion of the British empire.        Summary of Ch. 21.  Banking in the period immediately prior to passage of the Federal Reserve Act was subject to a myriad of controls, regulations, subsidies, and privileges at both the federal and state levels. Popular history portrays this period as one of unbridled competition and free banking.  It was, in fact, a half-way house to central banking.  Wall Street, however, wanted more government participation.  The New York bankers particularly  wanted a "lender of last resort" to create unlimited amounts of fiat money for their use in the event they were exposed to bank runs or currency drains.  They also wanted to force all banks to follow the same inadequate reserve policies so that more cautious ones would not draw down the reserves of the others.  An additional objective was to limit the growth of new banks in the South and West.        This was a time of growing enchantment with the idea of trusts and cartels.  For those who had already made it to the top, competition was considered chaotic and wasteful.  Wall Street was snowballing into two major banking groups: the Morgans and the Rockefellers, and even they had largely ceased competing with each other in favor of cooperative financial structures.  But to keep these cartel combine from flying apart, a means of discipline was needed to force the participants to abide by the agreements. The federal government was brought in as a partner to serve that function.        To sell the plan to Congress, the cartel reality had to be hidden and the name "central bank" had to be avoided.  The word Federal was chosen to make it sound like it was a government operation; the word Reserve was chosen to make it appear financially sound; and the word system (the first drafts used the word Association) was chosen to conceal the fact that it was a central bank.  A structure of 12 regional institutions was conceived as a further ploy to create the illusion of decentralization, but the mechanism was designed to operate as a central bank closely modeled after the Bank of England. [It would seem that we are still part of the English Empire.]        The first draft of the Federal Reserve Act was called the Aldrich Bill and was co-sponsored by Congressman Vreeland, but it was not the work of either of these politicians.  It was the brainchild of banker Paul Warburg and was actually written by bankers Frank Vanderlip and Benjamin Strong.        Aldrich's name was attached to a banking bill was bad strategy, because he was known as a Wall Street Senator.  His bill was not politically acceptable and was never released from committee.  The groundwork had been done, however, and the time had arrived to change labels and political parties.  The measure would now undergo minor cosmetic surgery and reappear under the sponsorship of a politician whose name would be associated in the public mind with anti-Wall Street sentiments.        Summary of Ch. 22.  President Taft, although a republican spokesman for big business, refused to champion the Aldrich Bill for a central bank. This marked him for political extinction. The Money Trust wanted a President who would aggressively promote the bill, and the man selected was Woodrow Wilson who had already publicly declared his allegiance. [Woodrow Willson sold his integrity, his honor, his patriotism, his love for country, and his honesty to the communist party by following the advice of Edward Mandel House, A COMMUNIST]. WILSON'S nomination at the Democratic national convention was secured by Colonel House, a close associate of Morgan and Warburg.  To make sure that Taft did not win his bid for reelection, th Money Trust encouraged the former Republican President, Teddy Roosevelt, to run on the Progressive ticket. [An anti-Constitution Fascist oriented party] The result, as planned, was that Roosevelt pulled away Republican support for Taft, and Wilson won the election with less than a majority vote. Wilson and Roosevelt campaigned vigorously against the evils of the Money Trust while, all along, being dependent upon that same Trust for campaign funding.        When Wilson was elected, Colonel House literally moved into the White House and became the unseen President of the United States.  Under his guidance, the Aldrich Bill was given cosmetic surgery and emerged as the Glass-Owen Bill.  Although sponsored by Democrats, in all essential features it was still the Jekyll Island plan.  Aldrich, Vanderlip, and others identified with Wall Street put on a pretense of opposing the Glass-Owen Bill to convince Congress and the public that big bankers were fearful of it.  The final bill was written with many sound features which were included to make it palatable during Congressional debate but which were dropped in later years.  To win the support of the Populists under the leadership of William Jennings Bryan, the Jekyll Island team also engineered what appeared to be compromises but which in actual operation were, as Wilson called them, mere "shadows" while the "substance" remained.  In short, Congress was outfoxed, outflanked, and outclassed by a deceptive, but brilliant, psycho-political attack.  The result is that, on December 23, America again had a central bank.        Summary of Ch. 23.  Congress had been assured that the Federal Reserve Act would decentralize banking power away from Wall Street. However, within a few years of its inception, the System was controlled by the New York Reserve Bank under the leadership of Benjamin Strong whose name was synonymous with the Wall Street money trust.         During the years before the crash of 1929, the Federal Reserve was responsible for a massive expansion of the money supply.  A primary motive for the policy was to assist the government of Great Britain to pay for its socialist programs which, by then, had drained its treasury.  By devaluing the dollar and depressing interest rates in America, investors would move their money to England where rates and values were higher.  That strategy succeeded in helping Great Britain for a while, but it set in motion the forces that made the stock-market crash inevitable.  The money soon expanded throughout this period, but the trend was interspersed with short spasms of contraction which were the result of attempts to halt the expansions.  Each resolve to use restraint was broken by the higher political agenda of helping the governments of Europe. In the long view, the result of plentiful money and easy credit was a wave of speculation in the stock market and urban real estate that intensified with each passing month.        There is circumstantial evidence that the Bank of England and the Federal Reserve had concluded, at a secret meeting in February of 1929, that a collapse in the market was inevitable and that the best action was to let nature take its course.  Immediately after that meeting, the financiers sent advisory warnings to lists of preferred customers-wealthy industrialists, prominent politicians, and high officials in foreign governments-to get out of the stock market.  Meanwhile, the American people were being assured that the economy was sound.        On August 9, the federal reserve applied the pin to the bubble.  It increased the the bank-loan rate and began to sell securities in the open market.  Both actions have the effect of reducing the money supply.  Rates on broker's loans jumped to 20%.  On October 29, the stock market collapsed. Thousands were wiped out in a single day.  The insiders who were forewarned Had converted their stocks into cash while the prices were still  high. Some of the greatest fortunes in America were made in that fashion.        Summary of Ch. 24.  The United States government is mired in a 5.8 [16.5] trillion dollar debt.  By 2001 [2013], interest payments on that debt were running $360 [over $500 billion) per year.  That consumes about 19% [23%] of all federal revenue and coats the average family over $5,000 [over $7500] each year.  Nothing is purchased by it.  It merely pays interest.  It represents the government's largest single expense.  Interest on the national debt is already consuming more than 36% of all the revenue collected from personal income taxes.  If the long-term trend continues, there is nothing to prevent it from eventually consuming all of it.        By 1992, there were more people working for government than for manufacturing companies in the private sector.  There are more citizens receiving government checks than there are paying income taxes.  When it is possible for people to vote on issues involving the transfer of wealth to themselves from others, the ballot box becomes a weapon whereby the majority plunders the minority.  That is the point of no return.  It is a doomsday mechanism.        By 1992, more than half of all federal outlays went for what are called entitlements.  Here is another doomsday mechanism.  Entitlements are expenses-such as Society Security and Medicare-which are based on promises of future payments [Some entitlements are,  and were, deducted from every ones income as an "income tax."  Congress has withdrawn those funds for personal "boondoggle" expenditures and left an IOU in their place. Consequently, that (those) funds have been depleted.] [The people deposit a sum, Congress steals twice that amount, thereby placing it in a hole.] Entitlements represent 52$ of federal outlays.  When this is added to the 14% that is now being spent for interest payments on the national debt, we come to the startling conclusion that two-thirds of all federal expenses are now entirely automatic, and that percentage is growing each month.        The biggest doomsday mechanism of all is the Federal Reserve System. Every spent of our money supply came into being for the purpose of being loaned to someone.  Those dollars will disappear when the loans are paid back.  If we tried to pay off the national debt, our money supply would be undermined.   Under the federal reserve system, therefore, Congress would be fearful to eliminate the national debt even if it wanted to.        Political environmentalism has caused millions of acres of timber and agricultural land to be taken out of production. Heavy industry has been chased from our shores by our own government.  High taxes, rules beyond reason for safety devices in the work place, so-called fair-employment practices, and mandatory health insurance are rapidly destroying what is left of the private sector.  The result is unemployment and dislocation for millions of American workers.  Government moves in to fill the void it creates, and bureaucracy grows by the hour.        Federal taxes now take more than 40% of our private incomes.  State, county, and local taxes are on top of that.  Inflation feeds on what is left.  We spend half of each year working for the government.  Real wages have declined.  Young couples with a single income have a lower standard of living than their parents did. The net worth of the average household is falling.  The amount of leisure time is shrinking.  The percentage of Americans who own their homes is dropping. The age at which a family acquires a first home is rising.  The number of families counted among the middle class is falling.  The number of people living below the officially defined poverty level is rising. Over 90% of all Americans ate broke at age 65.        None of this is accidental.  It is the fulfillment of a plan by members of the CFR who comprise the hidden government of the United States. [Headed up by the Rockefellers and Warburgs, along with Kissenger, Gingrich, obama, Wrangel, and so many others who want recognition.] their goal is the deliberate weakening of the industrialized nations as a prerequisite to bringing them into a world government built upon the principles of socialism, with themselves in control [currently the world is in a serious financial situation and many nations will go broke.  It is a great Ponzi scheme that just gets deeper and deeper in debt.  We are there due to the Ponzi scheme keeps coming to a head.  The Central Bank concept will continue until we are another Greece.] The origin of Many of the stratagems in this plan can be traced to a government-sponsored think-tank study released in 1966 called the Report From Iron Mountain.  The purpose of the study was to analyze methods by which a government can perpetuate itself in power-ways to control its citizens and prevent them from rebelling. The conclusion of the report was that, in the past, war has been the only reliable means to achieve that goal.  Under world government, however, war technically would be impossible.  So the main purpose of the study was to explore other methods for controlling populations and keep them loyal to their leaders.  It was concluded that a suitable substitute for war would require a new enemy which posed a frightful threat to survival.  Neither the threat nor the enemy had to be real, they merely had to be believable.        Several surrogates for war were considered, but the only one holding real promise was the environmental-pollution model.  This was viewed as the most likely to succeed because (1) it could be related to observable conditions such as fog and water pollution-in other words, it would be based partly on fact and, therefore, believable-and (2) predictions could be made showing end-of-earth scenarios just as horrible as atomic warfare.  Accuracy in these predictions would not be important.  Their purpose would be to frighten, not to inform.        While the followers of the current environmental movement are preoccupied with visions of planetary doom, the leaders have an entirely different agenda.  It is world government.        Summary of Ch. 25. [Some history: the current situation has happened before, as all Ponzi schemes will; in 1816, 1831, 1904, 1929, 1939, and today, 2012.  Won't we ever learn? Ponzi Schemes/Socialist or Communism programs just don't work!!] A pessimistic scenario of future events includes a banking crisis, followed by a government bailout and the eventual nationalization of all banks.  The final cost is staggering and is paid with money created by the Federal Reserve.  It is passed on to the public in the form of inflation.  Further inflation is caused by the continual expansion of welfare programs, socialized medicine, entitlement programs [one must never forget that Social Security money is SUPPOSED to be there because the citizens contributed to it all their working lives. NOT worthless IOUs by worthless Congressmen] and interest on the national debt. [See Amendment 14, Section 4.  It is a license to steal and be replaced by worthless IOUs. Should it NOW be rescinded?] The dollar is finally abandoned as the de facto currency of the world.  Trillions of dollars are sent back to the United States by foreign investors to be converted as quickly as possible into tangible assets.  That causes even greater inflation than before.  So massive is the inflationary pressure that industry and commerce come to a halt.  Barter becomes the means of exchange.  America takes her place among the depressed nations of South America, Africa, and Asia-mired together in economic equality.        Politicians seize upon the opportunity and offer bold reforms.  The reforms are more of exactly what created the problem in the first place: expanded government power, new regulatory agencies, and more restrictions on freedom.  But this time, the programs begin to take on an international flavor.  The American dollar is replaced by a new UN money, and the Federal Reserve System becomes a branch operation of the IMF/World Bank [instead of a two branches under the FED as it is now.].        Electronic transfers gradually replace cash and checking accounts. [Now as is the norm in parts of South Carolina.  One motel will not accept cash, in Mexico City, they do not want cash, only credit cards.] This permits UN agencies to monitor the financial activities of every person.  A machine-readable ID card is used for that purpose.  If an individual is red flagged by any government agency, the card does not clear, and he is cut off from all economic transactions and travel.  It is the ultimate control.        Increasing violence in the streets from revolutionary movements and ethnic clashes provide an excuse for martial law.  The public is happy to see UN soldiers checking ID cards.  The police state arrives in the name of public safety.        Eventually all private dwellings are taken over by the government as a result of bailing-out the home-mortgage industry [See Fannie May and Fannie Mac, both are at this time government owned. See the UN's Agenda 21, their plans for our future, and no future.] Rental property is also taken, as former landlords are unable to pay property taxes.  People are allowed to live in these dwellings at reasonable cost, or no cost at all.  It gradually becomes clear, however, that the government is now the owner of all homes and apartments.  People are living in them only at the pleasure of the government.  They can be reassigned at any time.        Wages and prices are controlled.  Dissidents are placed into work armies.  There are no more autos except for the ruling elite.  Public transportation is provided for the masses, and those with limited skills live in government housing within walking distance of their assigned jobs. Men have been reduced to the level of serfs who are subservient to their masters.  Their condition of life can only be described as high-tech feudalism.        There is no certainty that the future will unfold in exactly that manner, [it is an exact copy of the UN's Agenda 21, which goes even further in the disposable population that may be declared by the UN.  As Mr Bernard Shaw once said, "don't worry, you may be humanly disposed of when not needed."] because of there are too many variables.  For example, if we had assumed there will be a banking crisis, then our journey would be different. We would not see long lines of depositors or panic-buying in the stores or closing of the stock market.  But we would still witness the same scenes of despair in the more distant future .  We merely would have traveled a different path of events to get there.  That is because the forces driving our society into global totalitarianism would not have changed one iota.  We would have the CFR in control centers of government and the media.  We would have an electorate which is unaware of what is being done to them and, therefore, unable to resist.  Through environmental and economic treaties and through military disarmament to the UN, we world witness the same emergence of a world bank, a world government, and a world army to enforce its dictates.  Inflation and wage/price controls would have progressed more or less the same , driving consumer goods out of existence and men into bondage.  Instead of moving toward The New World Order in a series of economic spasms, we would have traveled a less violent path and arrived at exactly the same destination.        A Plan for Eliminating the FED.        The Federal Reserve System must be abolished for the following reasons: A.  It is incapable of accomplishing its stated objectives; B.  It is a cartel operating against the public interest; C.  It the supreme instrument of usury; D.  It generates our most unfair tax, (inflation); E.  It encourages war; F.  It destabilizes our economy; G.  It is an instrument of totalitarianism;        There are certain steps that must precede the abandonment of the FED if we are to have a safe passage.  The first step is to convert our present FIAT(Counterfeit) money into real money.  That means we must create an entirely new money supply which is 100% backed by precious metal-and we must do so within a reasonably short period of time.  To that end, we also must establish the true value of our present FIAT money so it can be exchanged for new money on a realistic basis and phased out of circulation.  Here is how it can be done:        PART B        Step 1.  Repeal The Legal-tender Laws.  The Federal Government will continue accepting Federal Reserve Notes in the payment of taxes, but everyone else will be free to accept them, reject them, or discount them as they wish.  There is no need to force people to accept honest money.  Only FIAT money needs the threat of imprisonment to back it up.  Private institutions should be free to innovate and to compete.  If people want to use Green Stamps or Disney-ride coupons or Bank-of-America Notes as a medium of exchange, they should be free to do so.  The only requirement should be faithful fulfillment of contract.  If the Green-Stamp company says it will give a crystal stamp for seven books of stamp, then it should be compelled to do so.  Disney should be required to accept the coupon in exactly the manner printed the back.  And, if Bank of America tells its depositors they can have their dollars back any time they want , it should required to keep 100% backing (coins or Treasury Certificates) in its vault at all times.  In the transition to a new money, it is anticipated that the old Federal Reserve Notes will continue to be widely used.        Step 2.  Freeze the present supply of Federal Reserve Notes, except for what will be needed in step number six.        Step 3.  Define the "real" dollar in terms of precious-metal content, preferably what it was in the past: 371.25 grains of silver.  It could be another weight of silver or even another metal, but the old silver dollar is a proven winner.        Step 4.  Establish gold as an auxiliary monetary reserve which can be substituted for silver, not at a fixed-price ratio, but at whatever ratio is set by the free market.  Fixed ratios always become unfair over time as the prices of gold and silver drift relative to each other.  Although gold may be substituted for silver at this ratio, it is only silver that is the foundation for the dollar.        Step 5.  Restore free coinage at the U. S. Mint and issue silver "dollars" as well as gold "pieces."  Both dollars and pieces will be defined by metal content, but only coins with silver content can be called dollars, half-dollars, or tenth-dollars (dimes).  At first, these coins will be derived only from metal brought into the Mint by private parties.  They must not br drawn from the Treasury's supply which is reserved for use in step number six.        Step 6.  Pay off the national debt with Federal Reserve Notes created for that purpose.  Creating money without backing is forbidden by the Constitution; however, when no one is forced by law to accept Federal Reserve Notes as legal tender, they will no longer be the official money of the United States.  They will be merely a kind of government script  which no one is required to accept.  Their utility will be determined by their usefulness in payment of taxes and by the public's anticipation of having them exchanged for real money at a later date.  The creation of Federal Reserve Notes, with the understanding that they are not the official money of the United States, would therefore not be a violation of the Constitution.  In any event, the deed is already done.  The decision to redeem government bonds with Federal Reserve Notes is not ours.  Congress decided that long ago, and the course was set at the instant those bonds were issued.  We are merely playing out the hand.  The money will be created for that purpose.  Our only choice is when: now or later.  If we allow the bonds to stand, the national debt will be repudiated by inflation.  The value of the original dollars will gradually be reduced to zero while only the interest remains.  Everyone's purchasing power will be destroyed, and the nation will die.  But if we want not to repudiate the national debt and decide to Pay it off now we will be released from the burden of interest payments and, at the same time, prepare the way for a sound monetary system.        Step 7.  Pledge the government's hoard of gold and silver (except the Military stockpile) to be used as backing for all the Federal Reserve Notes in circulation.  The denationalization of these assets is long overdue.  At various times in recent history, it was illegal for Americans to own gold, and their private holdings were confiscated.  The amount which was taken should be returned to the private sector as a matter of principal. The rest of the gold supply also belongs to the people, because they paid for it through taxes and inflation.  The government has no use for gold or silver except to support the money supply.  The time has come to give it back to the people and use it for that purpose.        Step 8.  Determine the weight of all gold and silver owned by the u. s. Government and then calculate the total value of that supply in terms of real (silver) dollars.        Step 9.  Determine the number of all the Federal Reserve in circulation and then calculate the real-dollar value of each one by dividing the value of the precious by the number of Notes.        Step 10. Retire all Federal Reserve Notes from circulation by offering exchange for dollars at the calculated ratio.  There will be enough gold or silver top redeem every Federal Reserve Note in circulation.  NOTE 1.        Step 11.  Convert all contracts based on Federal Reserve Notes to dollars using the same exchange ratio.  That includes the contracts called mortgages and government bonds.  In that way, monetary values expressed within debt obligations will be converted on the same basis and at the same time as currency.        Step 12.  Issue Silver Certificates.  As the Treasury redeems Federal Reserve Notes for dollars, recipients will have the option of taking coins or Treasury Certificates which are 100% backed.  These Certificates will become the new paper currency.        Step 13.  Abolish the Federal Reserve System.  It would be possible to allow the System to continue as a check clearing-house so long as it not function as a central bank.  A check clearing-house, probably one in each county, will be needed, and the 12 banks that presently own the FED should be allowed to continue performing that service.  However, the Federal Reserve System, as presently chartered by Congress, must be abolished.        Step 14.  Introduce free banking.  Banks should be deregulated and, at the same time, cut loose from protection at taxpayers' expense.  No more bailouts.  Nothing or no-one is too big to fail.  Rescind Amendment # XIV, Section 4.  Recent events shows that the management of taxpayers funds is beyond the capability of Congress.  The FDIC and other government "insurance" agencies should be phased out and their functions turned over to real insurance companies in the private sector.   This will also eliminate the functions of "other" quasi-official agencies from influencing in any way, the Federal Government.  Banks should be required to keep 100% reserves for demand deposits, because that is a contractual obligation.  Al forms of time deposits should be presented to the public exactly as CDs are today. In other words, the depositor should be fully informed that his/her money is invested and he or she will have to wait a specified time before the money can be returned.  Competition will insure that those institutions that best serve their customer's needs will prosper.  Those that do not will fall by the wayside-without the need of an army of bank regulators.        Step 15.  Reduce the size of government.  No solution to our economic problems is possible under socialism.  It is the author's view that the government should be limited to the protection of life, liberty, and property-nothing more.  That means the elimination  of almost all of the socialist-oriented programs that now infest the federal bureaucracy.  If we hope to retain-or perhaps to regain-our freedom, they simply have to go.  To that end, the federal government should sell all assets not directly related to its primary function of protection; it should privately sub-contract as many of its services as possible; and it should greatly reduce and simplify its taxes.        Step 16.  Restore national independence.  A similar restraint must be applied at the international level.  We must reverse all programs leading to disarmament and economic interdependence.  The most significant steps in that direction will be to Get us out of the UN and the UN out of US and stop all foreign aid because all we do is prop up dictators who are our friends as long as we buy them, but that will be just the beginning.  There are hundreds of treaties and administrative agreements that must be rescinded. There may be a few that are constructive and mutually to us and other nations, but the great majority of them will have to go.  That is not because we are isolationist.  It is simply because we want to avoid being engulfed in global tyranny. A DO NOT BECOME A MEMBER OF THAT FASCIST ORGN KNOWN AS THE   CFR.)        A plan for eliminating the FED.  So much for things not to do.  All that would be required to abolish the FED is an act of Congress consisting of one sentence: "The Federal Reserve and all of its amendments are hereby rescinded."  But that would wipe out our monetary system overnight and create such havoc in the economy that it play right into the hands of the globalists.  They would use the resulting chaos as evidence that a move was a mistake, and the American people would likely welcome a rescue from the IMF/World Bank.  We find ourselves back in the Pessimistic Scenario even though we had done the right thing.  There are certain steps that must precede the abandonment  of the FED if we are to have a safe passage. The first step is to convert our present fiat money into real money.  That means we must create an entirely new money supply which is 100% backed by precious metal-and we must do so within a reasonably short period of time.  To that end we must establish the true value of our present fiat money so it can be exchanged for new money on a realistic basis and phased out of circulation. Here is how it can be done:        A Plan for Eliminating the FED.        The Federal Reserve System must be abolished for the following reasons: A.  It is incapable of accomplishing its stated objectives; B.  It is a cartel operating against the public interest; C.  It the supreme instrument of usury; D.  It generates our most unfair tax, (inflation); E.  It encourages war; F.  It destabilizes our economy; G.  It is an instrument of totalitarianism;        There are certain steps that must precede the abandonment of the FED if we are to have a safe passage.  The first step is to convert our present FIAT(Counterfeit) money into real money.  That means we must create an entirely new money supply which is 100% backed by precious metal-and we must do so within a reasonably short period of time.  To that end, we also must establish the true value of our present FIAT money so it can be exchanged for new money on a realistic basis and phased out of circulation.  Here is how it can be done:        Step 1.  Repeal The Legal-tender Laws.  The Federal Government will continue accepting Federal Reserve Notes in the payment of taxes, but everyone else will be free to accept them, reject them, or discount them as they wish.  There is no need to force people to accept honest money.  Only FIAT money needs the threat of imprisonment to back it up.  Private institutions should be free to innovate and to compete.  If people want to use Green Stamps or Disney-ride coupons or Bank-of-America Notes as a medium of exchange, they should be free to do so.  The only requirement should be faithful fulfillment of contract.  If the Green-Stamp company says it will give a crystal stamp for seven books of stamp, then it should be compelled to do so.  Disney should be required to accept the coupon in exactly the manner printed the back.  And, if Bank of America tells its depositors they can have their dollars back any time they want , it should required to keep 100% backing (coins or Treasury Certificates) in its vault at all times.  In the transition to a new money, it is anticipated that the old Federal Reserve Notes will continue to be widely used.        Step 2.  Freeze the present supply of Federal Reserve Notes, except for what will be needed in step number six.        Step 3.  Define the "real" dollar in terms of precious-metal content, preferably what it was in the past: 371.25 grains of silver.  It could be another weight of silver or even another metal, but the old silver dollar is a proven winner.        Step 4.  Establish gold as an auxiliary monetary reserve which can be substituted for silver, not at a fixed-price ratio, but at whatever ratio is set by the free market.  Fixed ratios always become unfair over time as the prices of gold and silver drift relative to each other.  Although gold may be substituted for silver at this ratio, it is only silver that is the foundation for the dollar.        Step 5.  Restore free coinage at the U. S. Mint and issue silver "dollars" as well as gold "pieces."  Both dollars and pieces will be defined by metal content, but only coins with silver content can be called dollars, half-dollars, or tenth-dollars (dimes).  At first, these coins will be derived only from metal brought into the Mint by private parties.  They must not br drawn from the Treasury's supply which is reserved for use in step number six.        Step 6.  Pay off the national debt with Federal Reserve Notes created for that purpose.  Creating money without backing is forbidden by the Constitution; however, when no one is forced by law to accept Federal Reserve Notes as legal tender, they will no longer be the official money of the United States.  They will be merely a kind of government script  which no one is required to accept.  Their utility will be determined by their usefulness in payment of taxes and by the public's anticipation of having them exchanged for real money at a later date.  The creation of Federal Reserve Notes, with the understanding that they are not the official money of the United States, would therefore not be a violation of the Constitution.  In any event, the deed is already done.  The decision to redeem government bonds with Federal Reserve Notes is not ours.  Congress decided that long ago, and the course was set at the instant those bonds were issued.  We are merely playing out the hand.  The money will be created for that purpose.  Our only choice is when: now or later.  If we allow the bonds to stand, the national debt will be repudiated by inflation.  The value of the original dollars will gradually be reduced to zero while only the interest remains.  Everyone's purchasing power will be destroyed, and the nation will die.  But if we want not to repudiate the national debt and decide to Pay it off now we will be released from the burden of interest payments and, at the same time, prepare the way for a sound monetary system.        Step 7.  Pledge the government's hoard of gold and silver (except the Military stockpile) to be used as backing for all the Federal Reserve Notes in circulation.  The denationalization of these assets is long overdue.  At various times in recent history, it was illegal for Americans to own gold, and their private holdings were confiscated.  The amount which was taken should be returned to the private sector as a matter of principal. The rest of the gold supply also belongs to the people, because they paid for it through taxes and inflation.  The government has no use for gold or silver except to support the money supply.  The time has come to give it back to the people and use it for that purpose.        Step 8.  Determine the weight of all gold and silver owned by the u. s. Government and then calculate the total value of that supply in terms of real (silver) dollars.        Step 9.  Determine the number of all the Federal Reserve in circulation and then calculate the real-dollar value of each one by dividing the value of the precious by the number of Notes.        Step 10. Retire all Federal Reserve Notes from circulation by offering exchange for dollars at the calculated ratio.  There will be enough gold or silver top redeem every Federal Reserve Note in circulation.  NOTE 1.        Step 11.  Convert all contracts based on Federal Reserve Notes to dollars using the same exchange ratio.  That includes the contracts called mortgages and government bonds.  In that way, monetary values expressed within debt obligations will be converted on the same basis and at the same time as currency.        Step 12.  Issue Silver Certificates.  As the Treasury redeems Federal Reserve Notes for dollars, recipients will have the option of taking coins or Treasury Certificates which are 100% backed.  These Certificates will become the new paper currency.        Step 13.  Abolish the Federal Reserve System.  It would be possible to allow the System to continue as a check clearing-house so long as it not function as a central bank.  A check clearing-house, probably one in each county, will be needed, and the 12 banks that presently own the FED should be allowed to continue performing that service.  However, the Federal Reserve System, as presently chartered by Congress, must be abolished.        Step 14.  Introduce free banking.  Banks should be deregulated and, at the same time, cut loose from protection at taxpayers' expense.  No more bailouts.  Nothing or no-one is too big to fail.  Rescind Amendment # XIV, Section 4.  Recent events shows that the management of taxpayers funds is beyond the capability of Congress.  The FDIC and other government "insurance" agencies should be phased out and their functions turned over to real insurance companies in the private sector.   This will also eliminate the functions of "other" quasi-official agencies from influencing in any way, the Federal Government.  Banks should be required to keep 100% reserves for demand deposits, because that is a contractual obligation.  Al forms of time deposits should be presented to the public exactly as CDs are today. In other words, the depositor should be fully informed that his/her money is invested and he or she will have to wait a specified time before the money can be returned.  Competition will insure that those institutions that best serve their customer's needs will prosper.  Those that do not will fall by the wayside-without the need of an army of bank regulators.        Step 15.  Reduce the size of government.  No solution to our economic problems is possible under socialism.  It is the author's view that the government should be limited to the protection of life, liberty, and property-nothing more.  That means the elimination  of almost all of the socialist-oriented programs that now infest the federal bureaucracy.  If we hope to retain-or perhaps to regain-our freedom, they simply have to go.  To that end, the federal government should sell all assets not directly related to its primary function of protection; it should privately sub-contract as many of its services as possible; and it should greatly reduce and simplify its taxes.        Step 16.  Restore national independence.  A similar restraint must be applied at the international level.  We must reverse all programs leading to disarmament and economic interdependence.  The most significant steps in that direction will be to Get us out of the UN and the UN out of US and stop all foreign aid because all we do is prop up dictators who are our friends as long as we buy them, BESIDES, AREN'T WE BROKE., but that will be just the beginning.  There are hundreds of treaties and administrative agreements that must be rescinded.  There may be a few that are constructive and mutually to us and other nations, but the great majority of them will have to go.  That is not because we are isolationist.  It is simply because we want to avoid being engulfed in global tyranny.

APPENDIX  # B, TO THE CREATURE FROM JEKYLL ISLAND,  BY G. EDWARD
GRIFFIN AS COPIED BY C. L. McWORTER SR.

       Structure And Function of The Federal Reserve System.

       The three main components of the FED are: (1) the national Board of
Governors, (2) the regional Reserve Banks, and (3) the Federal Open Market
Committee.  Lesser components include: (4) the commercial banks which hold
the stock, and (5) the advisory councils.
       The function of the national Board of Governors is to determine the
system's monetary policy.  The Board consists of seven members who are
appointed by the President and confirmed by the Senate.  Their terms are
fourteen years and are fourteen years and are staggered so that they do not
coincide with the presidential term of office.  The purpose of this is to
ensure that no single President can dominate FED policy by stacking the
Board with his appointments.  One Board member is appointed as the chairman
for four years and another as Vice Chairman for four years.  The Chairman
controls the staff an is the single most powerful influence within the
System.
       Control is exercised by the Board and a handful of top staff
employees.  The Federal Reserve Act mandated that the President, when
selecting Governors "shall have due regard to a fair representation of the
financial, agricultural, industrial and commercial interests, and
geographical divisions of the country."  This mandate is now almost
completely ignored, and the men come primarily from the fields of banking
and finance.
       The function of the regional Reserve Banks is to hold cash reserves
of the system, to supply currency to member banks, to clear checks, and act
as fiscal agent for the government.
       The twelve regional Reserve Banks are located in Atlanta, Boston,
Chicago, Cleveland, Dallas, Kansas City, Minneapolis, New York,
Philadelphia, Richmond, San Francisco, and St. Louis.  They are corporations
with stock held by the commercial banks which are members of the system.
Member banks elect the directors of the regional Reserve Banks of which they
are a part.  The larger banks hold more shares but they have only one vote
in the selection of the Directors.
       Within each Regional-bank system there are nine Directors.  The
member banks elect three Class-A directors who represent the banking
industry and three Class-B directors who represent the general public.  The
remaining three Class-C directors are appointed by the national Board.  The
Chairman and Vice-Chairman of each Reserve Bank must be Class-C directors.
The selection of President and other officers is subject to control by the
national Board of Governors.  In this way, the national Board is able to
exercise control over the regional branches of the system.  The function of
the Federal Open Market Committee is to implement policy set by national
board, although it exercises considerable autonomy in setting its own
policy.  It manipulates the money supply and interest rates primarily by
purchasing or selling government securities-although it also accomplishes
that through the purchase or sale of foreign currencies and the securities
of other governments as well.  Money is created and interest rates go down
when it purchases.  Money is extinguished and rates go up when it sells.
Policy is formulated on a daily basis.  In fact , it is monitored by the
minute and the Committee often intervenes in the market to affect immediate
changes.
       The Open Market Committee is composed of the national Board of
Governors plus five of the twelve regional Presidents who serve on a
rotating basis.  The exception to this is the PRESIDENT OF THE New York
regional Bank who is always on the Committee.  Thus, once again, the System
is firmly in control of the national Board with the President of the New
York regional Bank being more powerful than the others.
       Twenty-four bond dealers handle all sales of government securities.
Government agencies cannot exchange with each other without going through
dealers who earn commissions on each transaction.
       Decisions are made at secret meetings.  A brief report is released
to the public six weeks later, but transcripts of the deliberations are
destroyed.  That policy was begun in 1970 when the Freedom-of-Information
Act was passed.  Not even the CIA enjoys such secrecy.
       The function of the member Banks is to conduct the nation's banking
business and to implement the System's monetary policy in terms of putting
money into or drawing it out of the system at the point of contact with
individual or corporate borrowers.
       This leads to the troublesome question of ownership.  The federal
government does not own any stock in the System.  In that sense, the FED is
privately owned. [Here we enter into "what to do with all the interest
income and fees from the credit card system!"] That, however, is misleading
in that it implies a typical private-ownership in which the stockholders own
and control.  Nothing could be further from the truth.  In this case, the
stock carries no proprietary interest, cannot be sold or pledged as
collateral, and does not carry ordinary voting rights.  Each bank is
entitled to but one vote regardless of the amount of stock it holds.  In
reality, the stock is not evidence of "ownership" but simply certificates
(sic) showing how much capital each bank has put into the System.  It is not
a government agency and it is not a private corporation in the normal sense
of the word.  It is subject to political control yet, because of its
tremendous power [paid for with our money] over politicians and the elective
process, it has managed to remain independent of political oversight.
Simply stated, it is a cartel, and its organizational structure is uniquely
structured to serve that end.


(.  A plan for eliminating the Federal Reserve and returning the Congress to
its rightful place in Government -Lindbergh, Charles A, Sr.  "This act
establishes the most gigantic trust on earth.  When the President signs this
bill, the invisible government by the monetary power will be legalized.  The
people may not know it immediately, but the day of reckoning is only a few
years removed.  The trusts will soon realize that they have gone too far for
their own good.  The people must make a declaration of independence to
relieve themselves from the Monetary Power.  This they will be able to do by
taking control of Congress...Wall Streeters (sic) could not cheat us if you
Senators and Representatives did not make a humbug of Congress...the
greatest crime of Congress is its currency system/the worst legislative
crime of the ages is perpetrated by this banking bill.  The caucus and the
party bosses have again operated and prevented the people from the benefit
of their own government." [Rep. Minn], Congressman, Father of Famous
Aviator.  Dec 22, 1913 the day before President Woodrow Wilson signed the
Federal Reserve Act, in a speech before the House of Representatives.
       Lindbergh, Charles A, Sr.  "When the President signs this act
[Federal Reserve Act of 1913], the invisible government by the money
power~(Wall Street Bankers. CLM Sr) proven to exist by the Monetary Trust
Investigation~will be legalized.  The new law will create inflation when the
trusts (CFR/FED. CLM Sr) want inflation.  From now on, depressions will be
scientifically created." [the inflation we now experience and the depression
we now experience was an artificially generated depression by the FED at the
instigation of the CFR.
       You have known (or would have known if you were doing your job)
since 1913 that this day was bound to come, but no, the Ponzi scheme was
continued on.  You, above all others, should step in and identify who was on
the pay roll of the CFR, Dodd, Frank, Gingrich, Obama, Mitt, are some. There
are many others.
       You people have allowed one man to take a govt job even when it is
in direct violation of the Constitution.  He is now a Rep. From Florida and
he should be impeached again, and fired.  But no, he is one of them!
       The FED must be eliminated NOW.  CREDIT CARDS MUST BE WITHDRAWN AND
DESTROYED NOW.  INDEBTEDNESS WILL DESTROY THIS NATION.
       DO NOT SIGN OR RENEW THE CHARTER FOR THE CENTRAL BANK.
FED, World Bank, IMF, Agency for International Development, IRS, Trilateral
Commission, FASCIST UN,  All elements of the CFR, the Bilderbergers, ,World
Bank, FDIC, and many others must be uncovered and abolished.  In addition to
the above, the man behind must answer to the man who is the richest and most
powerful man in the whole world, a BACKER of the Bank of England, Baron
Rothschild.  The ConocoPhillips Oil Companies pay all those billion and
million dollar bonus to certain banking concerns. ( "Continental/Phillips
pay a tremendous salary to The House of Rockfeller OIL Co, and the Phillips
66 Oil Co).
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Appendix B. The Creature From Jekyll IslandStructure And Function o