It appears that it is still possible for the United States economy to recover from the bubble created by the Fed and ACORN. So now the Fed is busy creating another bubble designed to kill the U.S. economy for good - so that a worldwide Communist economy can take over.
The actions of the Fed are not audited, and Soros along with other billionaires are involved
in its workings as well as stock market manipulation. There has been a movement
to audit the Fed - and it should be audited. Once its secret deals have been exposed,
legislation might be created that eliminates the Federal Reserve System entirely.
A full explanation of the creation of the Fed and its workings follows.
The Colonial Period
The early settlers in America had no capital resources, and needed money to transact their
businesses. This fact led to "land" banks being organized by the colonists under
English rule. Holders of stock in these banks pledged their land as security
for bank notes which then circulated as money. However, the notes were issued in
excess, and note holders often experienced difficulty in exchanging their paper for coins.
Coins at that time were usually based upon the British pound and the Spanish dollar.
The Post-Revolutionary Period
Following the American Revolution, there were little or no restrictions on the formation of banks. As a result, many attempts were made in many states to found banks which would be recognized as official. Such banks received their charters and official support from the state, and sometimes the state owned shares of the banks. In many communities, local banks were established which took the name of the state banks even though their shares were owned by the public - and in some instances they were private partnerships. Most of these banks issued currency and engaged in lending. However, there was no real volume of deposits because there was no general surplus of wealth in the country.
In 1785, under the Articles of Confederation, Congress adopted the dollar as the monetary
unit. And in 1792, the Mint Act provided for national coinage in silver and gold.
The Federal Banks
The first bank to be chartered by Congress was the Bank of North America, which was organized in Philadelphia in 1781 - but the first bank of national importance was Bank of the United States which began business in Philadelphia in 1791 with a worth of $10 million and a charter of incorporation for a period of 20 years. This bank was intended to be the federal government's bank as $8 million of its capital was subscribed by the public and $2 million by the government. The bank did well, but experienced serious political opposition from Americans who feared the centralization of power in the federal government. Congress refused to renew its charter and the bank was liquidated in 1811. It met its obligations in full.
The second Bank of the United States was chartered in 1816, with 20 of its directors chosen by stockholders and 5 appointed by the President. It had a subscribed capital of $35 million, and issued notes in denominations of $5 and over which were legal tender equal to treasury notes. This bank was successful but also met with political opposition and was forced to close when its charter expired in 1836.
During subsequent years, there was a considerable increase in local banks. Up until
this time, bank notes were the primary accepted means of payment. When large amounts
of gold and silver became available for coinage and gradual adoption of bank checks as means
of payment, bank notes were no longer so indispensable. During these years, bank
failures were fairly common, and attempts were made to organize banks into groups for the
purpose of insuring deposits. Member banks deposited a percentage of their capital
annually with the treasurer of the state until they had paid a certain total percentage.
If a bank became insolvent, the fund was to be used to pay the debts and redeem the
notes of the bank. However, such a system did not prevent suspensions and failures
among the associated banks, primarily because the period was one of general expansion in
which times of inflation were followed by times of crisis and panic.
The National Bank Act
Gold and silver coin remained the only legal tender until the Civil War when irredeemable federal currency (the "greenback") was declared legal tender for payment of all private debts. During the war gold and silver largely disappeared from circulation and paper money depreciated in value. In 1879, the government began redeeming greenbacks almost entirely in gold.
Monetary confusion had resulted from each bank issuing its own currency. This climaxed during the Civil War years as the supply of paper currency vastly expanded and its purchasing power nearly vanished. To cure the problem, the national banking system was established by Congress through adoption of the National Bank Acts of 1863 and 1864, which provided for a uniform currency throughout all of the states. Under the new law, banks were required to pledge United States bonds with the Treasury to secure their note issue. A tax of 1 percent of their average issue was collected from banks that entered the national system, and the note issues of state-chartered and other non-member banks were taxed at a rate of 10 percent. The Office of the Comptroller of the Currency was also established which helped to stabilize the system by checking on the soundness of charter banks.
The National Bank Act not only established a stable and valid currency, but it also provided a market for government bonds which aided the government in financing large ventures such the costs of the Civil War and the reconstruction needed thereafter. Under the acts, the national banks increased rapidly in number.
Under the new system, bank reserves were not concentrated where they would be available in time of need, and there was no efficient system for clearing checks among the states. The new system also failed to provide for the establishment of branches of American banks in foreign countries, and growing overseas business of the country made such facilities a necessity.
The Gold Standard Act of March 14, 1900, established gold as the standard for U.S. currency. In the year 1900, the United Stated entered into a period of unprecedented growth, supported by steadily increasing production of industries and farms. The banks reflected this growth. In 1900 there were 10,382 banks of all classes in the United States. In 1920, the number had grown to 30,189. However, the number of banks declined after 1920 until in 1953, there were only approximately 14,575. This was due to a trend toward larger and more stable banking and better means of transportation and communication.
In 1907, there was a steady decline in the stock market and the situation was brought to a climax in October with the suspension of the Knickerbocker Trust Company in New York. Suspensions of other banks followed. J.P. Morgan quickly loaned $25 million to the New York banks and the government increased bank deposits by issuing Panama Canal bonds and permitting the banks to retain 90 percent of the proceeds on deposit. The crisis was short-lived but led to a realization of the economic dangers of "inelastic" currency. As a result, the Aldritch-Vreeland Act of 1908 authorized the issue of emergency currency by groups of banks organized as "national currency associations". None of this emergency currency was issued until the financial disorganization from World War I necessitated the issue of $1,121,000,000 of such notes in 1914.
The national bank notes in the United States offer an object lesson of the shortcomings of a bond-secured currency. These notes were inversely elastic because it was to the interest of the banks to sell bonds and retire their notes in anticipation of increased business activity which would cause bond prices to decline. In other words, they would sell bonds and retire notes at the very time when business needed more currency. Conversely, it was to the interest of the banks to buy bonds and force notes into circulation when business had no need for additional currency. When all of the government bonds carrying currency issue privilege were retired, it was no longer possible to issue national bank notes.
Prior to 1933, the currency of the United States could be redeemed in gold. In 1933,
the gold certificates were withdrawn from circulation and national bank notes were eliminated.
Silver certificates and "greenbacks" remained as currency. The Gold Reserve
Act of January 30, 1934, called for the government to take possession of all monetary gold
in the country and, in essence, made gold the property of the government from whatever source
is should come. Gold could only be used (1) by the Federal Reserve banks for settling
international debts; (2) for industrial, artistic, or professional use; and (3) for such
other purposes as the Secretary of the Treasury deems consistent with the purposes of the
act. Today, our currency is not backed by anything but faith. If the communist
triumvirate is not stopped, our currency will be worthless.
Beginning of the Federal Reserve System - Aldritch
Nelson Wilmarth Aldritch was an American legislator born in Foster, Rhode Island on November 6, 1841. He was the son of a farm family of "modest means". At age 17 he went to work in Providence and by age 24 he was a partner in the largest wholesale grocers' firm in Rhode Island. In later years the firm had extensive interests in banking, sugar, rubber, and utilities.
After a time, Aldritch decided to devote himself to politics rather than business. He was a Republican member of the Providence common council (1869-1875), the state legislature (1875-1876), and the national House of Representatives (1879-1881). In 1876 he won the Senate seat made vacant by the death of General A. E. Burnside, and at the same time establishing his control of Republican politics in the state of Rhode Island.
Aldritch had a strong, attractive personality, and he soon entered the inner circle of Republican leadership in the Senate. He was now secure in his political position in his home state, had great skill as a parliamentary tactician, and expert knowledge of economic and financial matters, considerable wealth, and many business connections. These qualities made him indifferent to public opinion - and he stuck to his conservative principles, representing the interests of eastern industrial, commercial, and financial groups in resisting the demands for tariff and monetary reform from the west. He consistently supported high protective tariffs and the gold standard [too bad he was not here to keep us from getting off of it]. He led the Senate in its struggle with Theodore Roosevelt for dominance in the government, yet relations between the two men were generally amicable and mutually respectful.
The great interest of Aldritch' last years was a plan for banking reform [which was badly needed at the time]. As a result of the panic of 1907, the Aldritch-Vreeland Act was born, providing for the creation of a National Monetary Commission of which Aldritch became chairman to investigate the banking problem. Studies of European banking and currency systems in 1908 and consultations with American bankers preceded the publication in 1911 of the "Aldritch Plan", which contained many features which were later embodied in the Federal Reserve Act of 1913.
Aldritch retired from the Senate in 1911 and died in New York city on April 16, 1915.
The System
The Federal Reserve System was authorized by the Federal Reserve Act of December 23, 1913, to establish Federal Reserve Banks, furnish "elastic" currency, afford a means of rediscounting commercial paper, establish more effective supervision of banking in the United States, and for "other purposes".
The System comprises the Board of Governors; the Federal Open Market Committee; 12 Federal Reserve Banks and their 24 branches situated in different sections of the United States; the Federal Advisory Committee; and the member banks, which include all national banks within the United States and such state banks and trust companies as to have voluntarily applied to the Board of Governors for membership and have been admitted to the System.
The Board of Governors is composed of seven members appointed by the President by and with the advice and consent of Senate. The term for each is 14 years. When appointing these members, the President is supposed to have due regard for financial, agricultural, industrial, and commercial interests in the geographical divisions of the country.
The board determines general monetary credit and operating policies for the system as a whole, and formulates the rules and regulations necessary to carry out the purposes of the Federal Reserve Act. The board's principal duties consist of exerting an influence over credit conditions and supervising the Federal Reserve Banks and member banks.
Each member of the Board of Governors is also a member of the Federal Open Market Committee. Five representatives from the Reserve banks, each elected annually by the members of the boards of those banks, are the also members of the committee.
Open market operations of the Reserve banks are conducted under regulations adopted by the committee with a view to accommodating commerce and business, and with regard to their bearing upon the general credit situation of the country. The Reserve banks are authorized to purchase and sell in the open market certain securities and bills of exchange and bankers' acceptances of the kinds and maturities eligible for discount by the Reserve banks.
The Federal Advisory Council acts in an advisory capacity, conferring with the Board of Governors on general business conditions and making recommendations concerning matters within the Board's jurisdiction. The council is composed of 12 members, one from each Federal Reserve district being selected annually by the board of directors of the Reserve bank of the district. The council is required to meet in Washington, DC, at least four times each year, and more often if called by the Board of Governors.
Most of this was taken from a 1960 Americana Encyclopedia set and condensed to fit into something short enough to be read more easily.
As are many pieces of legislation promoted by Congress, the Federal Reserve Act looked like a great leap forward - which it was in most ways. However, hidden within it were the means to what could become a world society based upon feudalism.
Dr. Harold Quigley wrote a book with the title, TRAGEDY AND HOPE - A HISTORY OF THE WORLD IN OUR TIME which was first published in 1966. Quigley was proud of the fact that he was one of what is now sometimes referred to as the Shadow Party. As a rule, the members of that party do not want anyone to expose them - yet Quigley did so even though he was in favor of their agenda. Quigley believed that it was time for this group to tell the world about themselves because they had advanced to the point that others could not stop them - and others could have the choice of either going along with their agenda or of suffering the consequences. If others would go along with them and aid their agenda, these others would have hope - otherwise, they would suffer tragedy. Quigley's book is very long and detailed, so W. Cleon Skousen wrote an abbreviated version with his own comments - much like a book report. Skousen called his book The Naked Capitalist.
According to information found in The Naked Capitalist, copyrighted in 1970, the operation of the Federal Reserve System is one of the most interesting and mysterious combines in the country. Since it was founded in 1913, it has successfully resisted every attempt to conduct an audit of its affairs. The system consists of 12 "National Banks" but the only one of any significance is the one in New York. The New York bank has always been managed by someone completely congenial to the interests of international bankers. It is important to realize that the Federal Reserve System is not a bona fide Government agency. Technically, the stock is owned by the 12 National Banks which receive a dividend of six percent each year. Any profits from the System are supposed to be turned over to the U. S. Treasury. In fact, the President appoints seven members of the Federal Reserve Board for fourteen-year terms, but in spite of all this window dressing the Federal Reserve Board is completely independent in its decisions [and has defied several Presidents - which may be all right at times considering the expertise and/or quality of some of our Presidents].
The The Naked Capitalist is essentially the history and evolution of the "Shadow Party" which manipulated the adoption of the Federal Reserve System so that it would serve as a means to allow the most wealthy international bankers and those who were involved with them to covertly influence all governments and financial institutions - with the end in view of a world government in which they would be the dictators. The name "Shadow Party" is not mentioned as that is one given by David Horowitz and Richard Poe. However, the history is very precise and eventually leads to modern times in which Soros and his fellow billionaires are key players.
The book mentions that the Shadow Party billionaires do not trust democracies in any form because democracies prevent feudalism in a society in which the wealthy elite should be dictators. The Shadow Party billionaires believe themselves to be above the rest of humanity, that a democratic republic will always cater to those in the middle of the bell curve in intelligence, and therefore humanity should be under a dictatorial regime - preferably socialistic as such a regime, by its innate nature, is ruled from the top. Bear in mind that such a philosophy from these egocentric billionaires is logical because men who strive for such wealth and power are mentally unbalanced. Many do not consider them to be truly human as they are lacking empathy (the major problem with psychopaths).
The The Naked Capitalist also explains how and when the Democratic Party was taken over by the Shadow Party, and how both the Democrats and the Republicans have been influenced in such a way as to sink us farther into the quicksand of slavery. When one is in quicksand, he can attempt to pick up his left leg and the rest of his body will sink farther. Then he can attempt to pick up his right leg and the rest of his body will sink farther. Attempting to pick up the left leg is what we are doing when voting for the Democrats, and attempting to pick up the right leg what we are doing when voting for the Republicans. Either way we sink farther down. We no seldom have ways to elect those we want in office because candidates in both parties are usually bad for us - but each in a different way.
Before the Federal Reserve Act was legislated into existence, the majority of the politicians did not trust those who ran the banks - and they were probably correct in their lack of trust. The bankers made a great show of not wanting the Federal Reserve System - but this was a means to trick the politicians into moving in the preferred direction. Those legislators who finally created the system, probably believed in it and had no idea what it would become in the long run.
One point that is made in the The Naked Capitalist is how much these psychopathic Shadow Party members still fear exposure. The European royalty was the older equivalent of the Shadow Party. They were related to one another just as many in the Shadow Party have been and are related through either blood or marriage. The European royalty thought they would be in charge in their feudalistic societies until the end of time. Yet, they were overthrown.
Regardless of what Quigley said, the Shadow Party can be beaten.