Richard (Rick) Mills
Ahead of the Herd
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As a general rule, the most successful man in life is the man who has the best information
Here’s a long debated topic. Should we leave the creation of new money in the hands of bankers or place its creation solely with our government?
Let’s try and answer it.
The Creature from Jekyll Island
On the night of November 22, 1910 a delegation of the nation’s leading financiers, led by Senator Nelson Aldrich, left New Jersey for a very secret ten day meeting on Jekyll Island, Georgia.
Aldrich had previously led the members of the National Monetary Commission on a two year banking tour of Europe. He had yet to write a report regarding the trip, nor had he yet offered any plans for banking reforms.
"Despite my views about the value to society of greater publicity for the affairs of corporations, there was an occasion near the close of 1910, when I was as secretive, indeed, as furtive, as any conspirator. . . . Since it would have been fatal to Senator Aldrich’s plan to have it known that he was calling on anybody from Wall Street to help him in preparing his bill, precautions were taken that would have delighted the heart of James Stillman.” Frank Vanderlip, in the Saturday Evening Post, February 9, 1935
Accompanying Senator Aldrich to Jekyll Island were:
- Frank Vanderlip, president of the National City Bank of New York, associated with the Rockefellers
- Henry P. Davison, senior partner of J.P. Morgan Company, regarded as Morgan’s personal emissary
- Charles D. Norton, president of the Morgan dominated First National Bank of New York
- Col. Edward House, who would later become President Woodrow Wilson's closest adviser and founder of the Council on Foreign Relations
- Benjamin Strong, a lieutenant of J.P. Morgan
- Paul Warburg, a recent immigrant from Germany who had joined the banking house of Kuhn, Loeb and Company, New York directed the proceedings and wrote the primary features of what would be called the Aldrich Plan.
After the Jekyll Island visit the National Monetary Commission “wrote” the Aldrich Plan which formed the basis for the Federal Reserve system.
"In 1912 the National Monetary Association, under the chairmanship of the late Senator Nelson W. Aldrich, made a report and presented a vicious bill called the National Reserve Association bill. This bill is usually spoken of as the Aldrich bill. Senator Aldrich did not write the Aldrich bill. He was the tool, if not the accomplice, of the European bankers who for nearly twenty years had been scheming to set up a central bank in this Country and who in 1912 has spent and were continuing to spend vast sums of money to accomplish their purpose." Congressman Louis T. McFadden on the Federal Reserve Corporation: Remarks in Congress, 1934
After several failed attempts to push the Federal Reserve Act through Congress, a group of bankers funded and staffed Woodrow Wilson's campaign for President. He had committed to sign a slightly different version of the Federal Reserve Act than Aldrich’s Plan.
In 1913, Senator Aldrich pushed the Federal Reserve Act through Congress just before Christmas when much of Congress was on vacation. When elected president Woodrow Wilson passed the FED.
"Our secret expedition to Jekyll Island was the occasion of the actual conception of what eventually became the Federal Reserve System. The essential points of the Aldrich Plan were all contained in the Federal Reserve Act as it was passed." Frank Vanderlip, autobiography, From Farmboy to Financier
"I have unwittingly ruined my country.” Woodrow Wilson later said referring to the FED
The US Federal Reserve Bank (FED) is a privately owned company (Wikipedia describes the Fed as a complex business-government partnership that rules the financial world) that controls, and profits immensely by printing money through the US Treasury and regulating its value.
“Some [most] people think the Federal Reserve Banks are U.S. government institutions. They are not … they are private credit monopolies which prey upon the people of the U.S. for the benefit of themselves and their foreign and domestic swindlers, and rich and predatory money lenders. The sack of the United States by the Fed is the greatest crime in history. Every effort has been made by the Fed to conceal its powers, but the truth is the Fed has usurped the government. It controls everything here and it controls all our foreign relations. It makes and breaks governments at will.” Congressional Record 12595-12603 — Louis T. McFadden, Chairman of the Committee on Banking and Currency (12 years) June 10, 1932
“… we conclude that the [Federal] Reserve Banks are not federal … but are independent, privately owned and locally controlled corporations … without day-to-day direction from the federal government.” 9th Circuit Court in Lewis vs. United States, 680 F. 2d 1239 June 24, 1982
The FED began with approximately 300 people, or banks, that became owners (stockholders purchased stock at $100 per share) of the Federal Reserve Banking System. The Fed is privately owned - 100% of its shareholders are private banks, the stock is not publicly traded and none of its stock is owned by the US government.
The US government pushed through the Sixteenth Amendment (which exempted income taxes from constitutional requirements regarding direct taxes) restarted an income tax on Americans to pay the interest to the FED and reorganized the IRS to collect the monies – the interest - “owed” to the FED from its citizens.
Sir Josiah Stamp, president of the Rothschild Bank of England and the second richest man in Britain in the 1920s, said the following in 1927 at the University of Texas:
“The modern banking system manufactures money out of nothing. The process is perhaps the most astounding piece of sleight of hand that was ever invented. Banking was conceived in inequity and born in sin. Bankers own the Earth. Take it away from them but leave them the power to create money, and with a flick of a pen, they will create enough money to buy it back again. Take this great power away from them and all great fortunes like mine will disappear, for then this would be a better and happier world to live in. But if you want to continue to be the slaves of bankers and pay the cost of your own slavery, then let bankers continue to create money and control credit.”
The FED banking system collects billions of dollars in interest annually and distributes the profits to its shareholders - the interest on bonds acquired with its newly-issued Federal Reserve Notes pays the Fed’s operating expenses plus a guaranteed 6% return to its banker shareholders.
The US Congress gave the FED the right to print money at no interest. The FED creates money from nothing, loans it out through banks and charges interest. The FED also buys government debt with money from nothing, and charges U.S. taxpayers interest.
The Grip of Death
“We have, in this country, one of the most corrupt institutions the world has ever known. I refer to the Federal Reserve Board. This evil institution has impoverished the people of the United States and has practically bankrupted our government. It has done this through the corrupt practices of the moneyed vultures who control it.” Congressman Louis T. McFadden in 1932
“The financial system used by all national economies worldwide is actually founded upon debt. To be direct and precise, modern money is created in parallel with debt…The creation and supply of money is now left almost entirely to banks and other lending institutions. Most people imagine that if they borrow from a bank, they are borrowing other people's money. In fact, when banks and building societies make any loan, they create new money. Money loaned by a bank is not a loan of pre-existent money; money loaned by a bank is additional money created. The stream of money generated by people, businesses and governments constantly borrowing from banks and other lending institutions is relied upon to supply the economy as a whole. Thus the supply of money depends upon people going into debt, and the level of debt within an economy is no more than a measure of the amount of money that has been created.” Michael Rowbotham, ‘The Grip of Death’
The FED is the only for profit corporation in America that is exempt from both federal and state taxes.
Internal Revenue Service (IRS)
The IRS was restarted within months of the FED's inception. The roots of the IRS go back to the Civil War when President Lincoln and Congress, in 1862, created the position of commissioner of Internal Revenue (The position of Commissioner exists today as the head of the Internal Revenue Service) and enacted an income tax (the initial rate was 3% on income over $800, which exempted most wage-earners) to help pay war expenses. In 1872, seven years after the war, lawmakers allowed the temporary Civil War income tax to expire.
Congress enacted a flat rate Federal income tax in 1894, but the Supreme Court ruled it unconstitutional the following year because it was a direct tax not apportioned according to the population of each state.
Senator Aldrich was instrumental in the re-structuring of the American financial system through a federal income tax amendment, the 16th - he had originally opposed an income tax as communistic a decade before. The 16th Amendment gave Congress the authority to tax the income of individuals without regard to the population of each State:
“The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration."
In 1906 David Graham Phillips wrote a series of articles published in Cosmopolitan claiming that politicians were receiving huge payments from large corporations to argue their case in the Senate. Phillips claimed that the main figures in this scandal was Aldrich and Arthur P. Gorman of Maryland.
David Graham Phillips was murdered on 23rd January, 1911. Two months later Aldrich resigned from Congress.
The Federal Reserve was conceived and given birth by an unholy alliance of American and British bankers. The FED buys U.S. debt with money printed from nothing, then charges U.S. taxpayers interest. The US government pushed through the federal income tax amendment, restarted an income tax on Americans to pay the interest to the FED and reorganized the IRS to collect the monies – the interest - “owed” to the FED from its citizens.
Since the Fed’s creation in 1913 the dollar has lost more than 96% of its value.
Undoubtedly the greatest achievement of the FED has been to transform America from being the world’s foremost creditor nation to the world’s largest debtor nation.
Aldrich’s motto, when questioned about his activities and the reasoning behind them, was to "Admit nothing. Explain nothing."