The Federal Reserve's Shady Past

[PoliticalChic]

How many folks actually know what the Federal Reserve is, or does?

And....how many know how and why is was begun?



1. "The outbreak of the Panic of 1907 occurred following a series of scandalous revelations about the investments of some prominent New York financiers, which triggered widespread runs on trust companies throughout New York City..... The events of the Panic of 1907 that had the most severe consequences for financial markets were the widespread runs on trust companies that began in October....triggered by a failed attempt to corner the shares of United Copper Company, a mining concern, which resulted in significant losses for the speculators involved. " http://isites.harvard.edu/fs/docs/icb.topic1029951.files/Carola Paper.pdf




2. "The following passage, taken from "Chapter One: The Early 1910s: Post-Panic Creature and Party Posturing," outlines the influence of leading bankers, including J.P. Morgan, during the creation of the Federal Reserve - and the lengths to which government officials went to cover it up.

a. "Their plan called for the establishment of a National Reserve Association.
In keeping with the strategy to create a central bank without calling it such, the moniker omitted the word "bank."

b. The men agreed upon a central structure, with fifteen quasi-independent branches whose policies would be coordinated through a central national committee. It would have the power to create one standard currency that would support the country and the big banks in times of emergency, ensuring their stability.

c. The Treasury was in charge of creating coins and paper currency; its Bureau of Engraving and Printing had been producing all currency for the U.S. government, including silver and gold certificates, since 1877. A central bank would add another dimension to the U.S. banking system. (On October 28, 1914, the bureau began printing paper Federal Reserve notes, as instructed by Federal Reserve members.)....

d. The fact that it really was a means to provide an easier money supply to the big banks would not be part of its publicized benefits."
How Big Bankers Kept Secret Their Role in the Fed s Creation - Bank Think Article - American Banker





3. " The Federal Reserve is an independent central bank that derived its power in the aftermath of the Panic of 1907... a failed attempt to corner the copper market. Leery of banks, depositors withdrew savings in droves. The run ignited widespread concern in banking circles and Congress. ... prominent financier J.P. Morgan intervened, using his money (and recruiting help from fellow bankers) to keep banks afloat and prevent the New York Stock Exchange from going under. Many considered Morgan a hero for saving the economy, but the perception changed as the public came to believe Wall Street bankers actually caused the panic.

a. ... Congress created the National Monetary Commission to review bank policies and develop a sound national monetary system. Chairing the Commission was Senator Nelson W. Aldrich, who, closely aligned with bankers, had no intention of leaving them out when crafting the Federal Reserve Act—

b. .... the nation’s top financiers arrived at the exclusive Jekyll Island Club on the Georgia coastline for one purpose: to devise a plan to restructure banking in America.
In“From Farm Boy to Financier,”an article in the February 9, 1935, issue of the Post, author Frank A. Vanderlip—a leading banker and former Assistant Secretary of Treasury for President William McKinley—chronicled the top-secret meeting that helped create the Aldrich Plan, which would frame the Federal Reserve Act.

c. .... Aldrich concocted a scheme to bring together an elite group to help draft reforms. To ensure secrecy, Aldrich invited five key leaders from banking and government—Henry Davison, A. Piatt Andrew, Benjamin Strong, Paul Warburg, and Vanderlip—to the isolated Jekyll Island Club—“without a journalist within 50 miles.”
Jekyll Island and the Secret Behind the Fed The Saturday Evening Post

 

[Mad Scientist]

"The Creature from Jekyll Island" by G. Edward Griffin is the book that woke me up to the Privately Owned Federal Reserve.

 

[PoliticalChic]

"The Creature from Jekyll Island" by G. Edward Griffin is the book that woke me up to the Privately Owned Federal Reserve.

I will add more during the day...busy....I just got Anchee Min's book "Becoming Madame Mao"....can't put it down.

 

[PoliticalChic]

4. Author Brad Thor was interviewed about his novel, and advanced the following view of the provenance of the Federal Reserve.

Thor revealed the agency behind “Hidden Order”: the Federal Reserve.
“I learned about a group of powerful people that snuck out of New York one night in November in the early 1900′s,” he told Beck. “They went down to an island called Jekyll Island and there they cobbled together…a plan for a central bank for the United States of America.”

He noted how two previous attempts to create a centralized bank had been overwhelmingly rejected by the American people, so the individuals had to create an “elaborate smoke screen,” leaving any reference of a centralized bank from the title, instead naming the organization the “Federal Reserve.”

In number one bestselling author’s estimation, the Federal Reserve loves the current scandals surrounding the IRS and the NSA because it’s about to mark it’s 100th year, and despite the fact that they’re “not accountable to the American people,” we’re “not talking about them.”
http://www.theblaze.com/stories/201...owerful-agency-behind-new-book-hidden-order/\




5. "Well, the Fed essentially, the Fed was set up allegedly to help money panics, these runs on the bank, where the banks had loaned out more money than they actually had in the vault. And it’s interesting, because Paul Warburg, one of the co-creators of the plan for the Fed, had given a big speech at the Economic Club of New York in the early 1900s, and said if we don’t have a central bank, and we have another bad thing happen in the markets, it could be disaster.

It’s almost like that Rahm Emanuel, don’t let a good crisis go to waste, because not long after he said that, there was a big crisis in the markets. Some people attribute it to J.P. Morgan trying to corner part of the market and force one of his competitors out.

What troubles me is Warburg’s brother, it was either Warburg’s brother or his cousin, ran the Reichsbank in Germany that created rampant hyperinflation, and that Reichsbank, in the Weimar Republic, is what they used as a model for our Fed."
Brad Thor On His Latest Scot Harvath Novel Hidden Order The Hugh Hewitt Show

 

[Mad Scientist]

When you see how "sneakily" the Federal Reserve Act was written and passed you realize how the US Gov't REALLY works and you begin to wonder:

"What ELSE have they done in the 100 years since?"

 

[PoliticalChic]

When you see how "sneakily" the Federal Reserve Act was written and passed you realize how the US Gov't REALLY works and you begin to wonder:

"What ELSE have they done in the 100 years since?"

And more than 100 years....
...... a little history of the idea, before the Federal Reserve.....


6. "... "It's an incredible shell game. ... Britain wanted to place the colonists under the Bank of England. That act was considered to be so beyond the pale that it is said to have been the final straw that led to the Revolutionary War."


7. "While some of the founders like Jefferson were against acentral bank," said Wise, "there were others like Alexander Hamilton who were not only for it, but pushed hard to make it happen. In fact, to get Southern lawmakers on board Hamilton agreed to make sure America's capitol was moved from New York City and further south."


8. "Despite Jefferson's bitter opposition to central banks as being engines of speculation, manipulation, and financial corruption, President George Washington had signed the first bank's charter. But when it expired twenty years later, so many people hated it, Congress refused to renew it.

9. "President James Madison signed the Second Bank of the United States into existence, but when Andrew Jackson took office, he refused to renew its charter. he was a lot like Thomas Jefferson and saw the central bank as an engine for corruption. When the economy got rocky, Jackson wisely pushed for all federal land sales to be transacted in gold or silver. Many banks adopted a similar modus operandi and it started to catch on.


10. "Some banks, though, were so leveraged that they couldn't pay their customers when they came looking for their money. This led to waves of bank runs, some of which actually created serious inbalances in the economy. One of the worst 'bank runs' led to the creation of the Federal Reserve."
From the novel "Hidden Order," by Brad Thor

 

[PoliticalChic]

And the actual events that formed the Federal Reserve:


11. "It was a cold, windy evening in November of 1910, when a group of the most powerful bankers in the United States snuck out of New York City on a top-secret mission. In Hoboken, New Jersey, posing as a duck-hunting party, they boarded an opulent private railcar bound for an even more opulent, private resort off the Georgia coast called Jekyll Island." Brad Thor, "Hidden Order"




12. These bankers, " together with Senator Nelson Aldrich and Asst. Secretary of the Treasury A. Piatt Andrew met in a very secret meeting at J.P. Morgan's Jekyll Island Hunt Club, a private island preserve off Brunswick, Georgia, for the purpose of planning a private banking cartel in America similar to the ones in Europe controlled by the bankers. This soon became the Federal Reserve System.

Baron Alfred Rothschild was the mastermind behind the plan. Paul Warburg, a partner in Kuhn, Loeb & Company, was Rothschild's representative at the meeting.....The final vote occurred in the U.S. Senate on December 22, when most members of Congress were home for Christmas and only five selected senators were present at an evening session. This act created a private banking cartel entirely owned by the bankers which allows them to create money out of thin air, to expand it further by means of fractional reserve banking and to totally control our economy.

The only connection to our government is that the President nominally appoints members to the Federal Reserve Board for 14-year terms but in practice the bankers' candidates have always been appointed. Paul Warburg, a German national, and one of the Jekyll Island conspirators, became the first Chairman of the Federal Reserve Board in 1914. His brother Max was financing Germany's involvement in World War I at the same time." http://www.theforbiddenknowledge.com/hardtruth/beating_the_new_world_order.htm



13. "Of the secretive group who met on Jekyll Island that November and created the basic plan for the Federal Reserve system, Frank Vanderlip was the only one to write a first hand account of the meeting, a quarter of a century later. 'From Farm Boy to Financier' traces Vanderlip’s life from his childhood on his family’s Aurora, Illinois farm through his adult life as a banker and financier including his experience on Jekyll Island. Although the book is out of print, excerpts from it may be viewed at this website:
Frank Vanderlip And The Creation Of The Federal Reserve Market Skeptics

The Federal Reserve And The Men Who Created It-Frank Vanderlip - Jekyll Island Club Hotel

 

[PoliticalChic]

Morgan, Warburg, and the bankers produce the largest industry in the nation: printing money.



14. " [A Hegelian Dialectic is] where a group or an individual creates a problem, knowing full well in advance how people will react to it. They then begin agitating for something to be done about the problem, for things to change. Once the masses are then worked up enough and desperate enough for something to be done, about the problem, the party behind the problem unveils their solution. The people are thrilled to have a plan, any plan, and so demand that it be implemented. They never seem to realize that they have been manipulated and that they haven't really ushered in change, but actually a much worse version of what they had previously, only now in brand-new packaging."

15. "That's exactly what happened with the Fed. A problem was manufactured by a powerful group of people who sat on the sidelines waiting for a panicked citizenry to beg for a solution. Once people started begging loud enough, all this group had to do was set the wheels in motion and make it look like everything was unfolding naturally.

"In this case it was a group of New York bankers colluding to set up a third central bank that would give them a monopoly over the banking system. Shortly after the new year in 1907, an article appeared in the New York Times by investment banker Paul Warburg, who cautioned that Americans needed to reinstate a central bank if they wanted to avoid any more terrible bank runs.

16. "One of Warburg's banking partners then gave a speech warning that if the United States didn't set up a central bank the country was going to undergo the most severe and far-reaching crash in its history. This sky is falling. The sky is falling. All they needed then was to be proven right. Enter their pal J.P. Morgan.

"Once a slew of side bets were placed that the stock market was going to fall, a run was launched on the stock of a company called United Copper --- one of J.P. Morgan's biggest competitors. Panic took over the market. It was like all of the water being sucked out to sea before a giant tsunami comes ashore. Suddenly, everyone wanted out.

"New York banks friendly to Warburg and Morgan yanked their money, the stock market dropped nearly fifty percent, and New York's third largest trust collapsed. From there, the panic spread across the country as citizens rushed to their own banks to pull out all of their money."
From the novel "Hidden Order," by Brad Thor

 

[Mad Scientist]

I've tried explaining to Toro that the 1907 Bank Crisis was an example of the "Hegelian Dialectic" but he won't have any of it.

The Brand New version of that is the US Gov't funding, then bombing ISIS.

 

[EdwardBaiamonte]

so what would replace the Fed?

 

[EdwardBaiamonte]

I've tried explaining to Toro that the 1907 Bank Crisis was an example of the "Hegelian Dialectic" but he won't have any of it.

The Brand New version of that is the US Gov't funding, then bombing ISIS.

so is it good that we are bombing ISIL?

 

[Mad Scientist]

I've tried explaining to Toro that the 1907 Bank Crisis was an example of the "Hegelian Dialectic" but he won't have any of it.

The Brand New version of that is the US Gov't funding, then bombing ISIS.

so is it good that we are bombing ISIL?

No. That takes belief in the whole "ISIS is a Threat" to begin with.

The solution to ISIS is to Stop Funding Them!

 

[EdwardBaiamonte]

I've tried explaining to Toro that the 1907 Bank Crisis was an example of the "Hegelian Dialectic" but he won't have any of it.

The Brand New version of that is the US Gov't funding, then bombing ISIS.

so is it good that we are bombing ISIL?

No. That takes belief in the whole "ISIS is a Threat" to begin with.

The solution to ISIS is to Stop Funding Them!

dear, if Al Qaeda was a threat then ISIL is 100 times that threat.

 

[PoliticalChic]

so what would replace the Fed?

What was before the Fed?

"Free" Banks: 1837-1863

While there had always been state-chartered banks in the United States, with loss of the Second Bank's charter, there was a need for more banking. Consequently, during the period from 1837 to the Civil War, commonly known as the free banking era, states passed "free bank laws," which allowed banks to operate under a much less onerous charter. While banks were regulated, they were relatively free to enter the business by simply depositing government bonds with state auditors.


These bonds were the collateral backing the notes free banks issued. In addition, free banks were required to redeem their notes on demand in specie. As a result of the free banking laws, hundreds of new banks opened their doors, and free bank notes circulated around the country, often at a discount: The discount on a given bank note varied in part with the distance from the issuing bank and in part with the perceived soundness of the bank.


Over this period a private institution, known as the Suffolk Bank in New England, took on some of the roles typical of a central bank, such as clearing payments, exchanging notes and disciplining banks that were over-issuing their notes. Also, in response to a rising volume of note and check transactions beginning in the late-1840s, the New York Clearinghouse Association was established in 1853 to provide a way for the city's banks to exchange notes and checks and settle accounts."
A History of Central Banking in the United States The Federal Reserve Bank of Minneapolis

 

[PoliticalChic]

17. "It was an all-out panic, and people were screaming for something to be done. Enter again J.P. Morgan who pledged his own funds to stabilize the banking system.

"Rallying other bankers to join him, some of whom had helped him exacerbate the panic, Morgan magically stemmed the bleeding and the panic began to subside. But as it did, panic was replaced by a nationwide outcry that something be done so that thins kind of thing never happened again.

"Never let a good crisis go to waste, right?


The people blamed the bankers, but the bankers masterfully blamed 'the system,' which led to everyone clamoring for the system to be reformed. Congress instantly responded by setting up a special commission. Magically chosen to head the commission was a profiteering, multimillionaire Rhode Island senator who was friends with Morgan and Warburg, as well as being deep in the pockets of the rubber and tobacco industries. His name was Nelson Aldrich."


After nearly two years of study and three hundred thousand dollars spent, Senator Aldrich hadn't filed a single report on what he had learned, nor had he offered any solutions for 'reforming' America's banking system"
From the novel "Hidden Order," by Brad Thor


But we got the Federal Reserve.

 

[EdwardBaiamonte]

so what would replace the Fed?

What was before the Fed?

"Free" Banks: 1837-1863

yes and each one had its own currency. At one point there were 2200 different curriencies in the USA. Imagine how inefficient that would be today? Europe just switched to one currency from 27 and you want to go back to 3-4000 curriencies?

 

[PoliticalChic]

so what would replace the Fed?

What was before the Fed?

"Free" Banks: 1837-1863

yes and each one had its own currency. At one point there were 2200 different curriencies in the USA. Imagine how inefficient that would be today? Europe just switched to one currency from 27 and you want to go back to 3-4000 curriencies?

1. The essence of the thread is the shady origins of the Federal Reserve.
Consider why it was done in such a manner.

2. I'm almost certain that you know the reason for the government's desire for one stop-shopping for loan.
The Civil War.
Not particularly to make certain only one currency was available.

 

[EdwardBaiamonte]

so what would replace the Fed?

What was before the Fed?

"Free" Banks: 1837-1863

yes and each one had its own currency. At one point there were 2200 different curriencies in the USA. Imagine how inefficient that would be today? Europe just switched to one currency from 27 and you want to go back to 3-4000 curriencies?

1. The essence of the thread is the shady origins of the Federal Reserve.
Consider why it was done in such a manner.

2. I'm almost certain that you know the reason for the government's desire for one stop-shopping for loan.
The Civil War.
Not particularly to make certain only one currency was available.

you would prefer 3-4000??

 

[PoliticalChic]

so what would replace the Fed?

What was before the Fed?

"Free" Banks: 1837-1863

yes and each one had its own currency. At one point there were 2200 different curriencies in the USA. Imagine how inefficient that would be today? Europe just switched to one currency from 27 and you want to go back to 3-4000 curriencies?

1. The essence of the thread is the shady origins of the Federal Reserve.
Consider why it was done in such a manner.

2. I'm almost certain that you know the reason for the government's desire for one stop-shopping for loan.
The Civil War.
Not particularly to make certain only one currency was available.

you would prefer 3-4000??

I would prefer that you provide a comment on the origin of the Federal Reserve.

 

[EdwardBaiamonte]

so what would replace the Fed?

What was before the Fed?

"Free" Banks: 1837-1863

yes and each one had its own currency. At one point there were 2200 different curriencies in the USA. Imagine how inefficient that would be today? Europe just switched to one currency from 27 and you want to go back to 3-4000 curriencies?

1. The essence of the thread is the shady origins of the Federal Reserve.
Consider why it was done in such a manner.

2. I'm almost certain that you know the reason for the government's desire for one stop-shopping for loan.
The Civil War.
Not particularly to make certain only one currency was available.

you would prefer 3-4000??

I would prefer that you provide a comment on the origin of the Federal Reserve.

As far as I recall it originated in the Panic of 1907. Wall Street and govt decided it was better to have a big central bank system in place to act as the lender of last resort in a panic rather than risk a depression as private bankers and govt frantically organized each time it was necessary to get up the money needed to
liquefy the system.

To this day most economists from all points on the spectrum want to keep the Fed on grounds it is less dangerous than a gold standard. I think both are dangerous and either can be managed successfully with the economic knowledge we now have.