THE HISTORY OF MONEY, PART 3
By Gary Allen
WORLD WAR I (1914-1918)
The Germans borrowed money from the German Rothschilds bank, the British from the British Rothschilds bank, and the French from the French Rothschilds.
American super banker J.P. Morgan was amongst other things also a sales agent for war materials. Six months into the war his spending of $10 million a day made him the largest consumer on the planet.
The Rockefellers and the head of president Willson's War Industries Board, Bernard Baruch each made some $200 million while families contributed their sons to the bloody front lines, but profit was not the only motive for involvement.
Russia had spoiled the money changers plan to split America in two, and remained the last major country not to have its own central bank.
However, three years after the start of the war the entire Russian Royal Family was killed and Communism began.
You might find it strange to learn that the Russian Revolution was also fuelled with British money. Capitalist businessmen financing Communism?
Author Gary Allen gives his explanation:
"If one understands that socialism is not a share-the-wealth programme, but is in reality a method to consolidate and control the wealth, then the seeming paradox of super-rich men promoting socialism becomes no paradox at all. Instead, it becomes logical, even the perfect tool of power-seeking megalomaniacs.
Communism or more accurately, socialism, is not a movement of the downtrodden masses, but of the economic elite."
Gary Allen, Author
W.Cleon Skousen wrote in his book 'The Naked Capitalist.'
"Power from any source tends to create an appetite for additional power... It was almost inevitable that the super-rich would one day aspire to control not only their own wealth, but the wealth of the whole world.
To achieve this, they were perfectly willing to feed the ambitions of the power-hungry political conspirators who were committed to the overthrow of all existing governments and the establishments of a central world-wide dictatorship."
Extreme revolutionary groups were controlled by being financed when they complied and cut off, with money sometimes being given to their opposition, when they didn't.
If you find this hard to believe, listen to what the so called dictator of the new Soviet Union had to say.
"The state does not function as we desired. The car does not obey. A man is at the wheel and seems to lead it, but the car does not drive in the desired direction. It moves as another force wishes."
Vladimir Lenin 1
Rep. Louis T. McFadden, chairman of the House Banking and Currency Committee throughout the 1920-30s explained it this way.
"The course of Russian history has, indeed, been greatly affected by the operations of international bankers... The Soviet Government has been given United States Treasury funds by the Federal Reserve Board... acting through the Chase Bank. ...
England has drawn money from us through the Federal Reserve Banks and has re-lent it at high rates of interest to the Soviet Government... The Dnieperstory Dam was built with funds unlawfully taken from the United States Treasury by the corrupt and dishonest Federal Reserve Board and the Federal Reserve Banks." Rep. Louis T.McFadden (D-PA) 2
Even when Communism collapsed in the Soviet Union, Boris Yeltsin revealed that most of the foreign aid was ending up, we quote. "straight back into the coffers of western banks in debt service."
1. Wurmbrand, "Marx and Satan," p. 49
2. United States Congressional Record, June 15, 1934
With Russia down the money changers now had control of every major national economy. Like a steam roller moving and a wolf gathering its pack, there was only one thing left to do and that was to go global. The first attempt was the proposal at the Paris Peace Conference after WWI to set up the League of Nations. Old habits die hard, and even what they called 'the war to end all wars' was not enough to convince nations to dissolve their boundaries. The League died.
If politicians really were being controlled, you would think at least one would break ranks and cry out against it. Many did. One was no less than former New York City Mayor John Haylan.
"These international bankers and Rockefeller-Standard Oil interests control the majority of the newspapers and magazines in this country. They use the columns of these papers to club into submission or drive out of office public officials who refuse to do the bidding of the powerful corrupt cliques which compose the invisible government....
The warning of Theodore Roosevelt has much timeliness today, for the real menace of our republic is this invisible government which like a giant octopus sprawls its slimy length over City, State, and nation... It seizes in its long and powerful tentacles our executive officers, our legislative bodies, our schools, our courts, our newspapers, and every agency created for the public protection...
To depart from mere generalisations, let me say that at the head of this octopus are the Rockefeller-Standard Oil interest and a small group of powerful banking houses generally referred to as the international bankers. The little coterie of powerful international bankers virtually run the United States government for their own selfish purposes.
They practically control both parties, write political platforms, make catspaws of party leaders, use the leading men of private organisations, and resort to every device to place in nomination for high public office only such candidates as will be amenable to the dictates of corrupt big business...
These international bankers and Rockefeller-Standard Oil interests control the majority of newspapers and magazines in this country."
John Hylan, Mayor of New York 1927, 1
These warnings fell on deaf ears, drowned out by the music and excitement of the roaring 20's. People don't tend to complain much in times of prosperity, so the money changers used this boom time they had created to defuse any complaints about their growing control.
1. (Former New York City Mayor John Haylan speaking in Chicago and quoted in the March 27, 1927, New York Times)
DEPRESSION IN 1929
Stack in front of you the biographies of all the Wall Street giants, J.P. Morgan, Joe F. Kennedy, J.D. Rockefeller, Bernard Baruch, and you'll find they all marvel at how they got out of the stock market and put their assets in gold just before the crash.
None mention a secret directive, since revealed, sent by the father of the Federal Reserve, Paul Warburg, warning of the coming collapse and depression.
With control of the press and the education system, few Americans are aware that the Fed caused the depression. It is however a well known fact among leading top economists.
"The Federal Reserve definitely caused the Great depression by contracting the amount of currency in circulation by one-third from 1929 to 1933."
Milton Friedman, Nobel Prize winning economist
"It was not accidental. It was a carefully contrived occurrence... The international bankers sought to bring about a condition of despair here so that they might emerge as rulers of us all."
Rep. Louis T.McFadden (D-PA)
"I think it can hardly be disputed that the statesmen and financiers of Europe are ready to take almost any means to re-acquire rapidly the gold stock which Europe lost to America as the result of World War I."
Rep. Louis T.McFadden (D-PA)
$40 billion somehow vanished in the crash.
It didn't really vanish, it simply shifted into the hands of the money changers. This is how Joe Kennedy went from having 4 million dollars in 1929 to having over 100 million in 1935.
During this time the Fed caused a 33 per cent reduction of the money supply, causing deeper depression.
HOW THE FED CREATES MONEY
We've been talking about how the privately owned Federal Reserve can produce money from thin air. Here's how it's done.
1. The purchase of bonds is approved by the Federal Open Market Committee.
2. The Fed buys the bonds which it pays for with electronic credits made to the sellers bank. These credits are based on nothing.
3. The receiving banks then use these credits as reserves from which they can loan out ten times the amount.
To reduce the amount of money in the economy they simply reverse the process.
The Fed sells bonds to the public and money is drawn from the purchasers bank to pay for them.
Each million withdrawn lowers the banks ability to loan by 10 million.
The Federal bank in this way has overall control of the US money supply, as each country's central bank does in the same way. The bankers, through the magic of fractional reserve banking have been delegated the right to create 90 per cent of the money supply. This control makes a mockery of any elected government. It places so called leaders behind a toy steering wheel, like the plastic ones, set up to amuse small children.
Or as Rep. Charles Lindbergh father of famous aviator Lucky Lindy puts it when commenting on the Federal Reserve Act:
"This act establishes the most gigantic trust on earth. When the President signs this bill, the invisible government by the Monetary Power will be legalised.
The people may not know it immediately, but the day of reckoning is only a few years removed... The worst legislative crime of the ages is perpetrated by this banking bill."
Rep. Charles Lindbergh (R-MN)
Or as Woodrow Wilson put it:
"We have come to be one of the worst ruled, one of the most completely controlled governments in the civilised world - no longer a government of free opinion, no longer a government by... a vote of the majority, but a government by the opinion and duress of a small group of dominant men.
Some of the biggest men in the United States, in the field of commerce and manufacture, are afraid of something. They know that there is a power somewhere so organised, so subtle, so watchful, so interlocked, so complete, so pervasive, that they had better not speak above their breath when they speak in condemnation of it."
In order to clearly establish that this is not a conspiracy theory, but is actually how things are controlled, we further quote Charles Lindbergh. From the House of Representatives, Lindbergh was well placed to see exactly what was happening back then and continues to happen today.
"To cause high prices all the federal reserve board will do will be to lower the re-discount rate..., producing an expansion of credit and a rising stock market; then when... business men are adjusted to these conditions, it can check... prosperity in mid-career by arbitrarily raising the rate of interest.
It can cause the pendulum of a rising and falling market to swing gently back and forth by slight changes in the discount rate, or cause violent fluctuations by greater rate variation, and in either case it will possess inside information as to financial conditions and advance knowledge of the coming change, either up or down.
This is the strangest, most dangerous advantage ever placed in the hands of a special privilege class by any Government that ever existed.
The system is private, conducted for the sole purpose of obtaining the greatest possible profits from the use of other people's money.
They know in advance when to create panics to their advantage. They also know when to stop panic. Inflation and deflation work equally well for them when they control finance..."
Rep. Charles Lindbergh (R-MN)
Most all will be aware of Hitler's rise to power. What they probably don't know is that he was almost completely financed by money drawn from the privately owned American Federal Reserve.
"After WWI, Germany fell into the hands of the international bankers. Those bankers bought her and they now own her, lock, stock, and barrel. They have purchased her industries, they have mortgages on her soil, they control her production, they control all her public utilities.
The international German bankers have subsidised the present Government of Germany and they have also supplied every dollar of the money Adolf Hitler has used in his lavish campaign to build up threat to the government of Bruening.
When Bruening fails to obey the orders of the German International Bankers, Hitler is brought forth to scare the Germans into submission...
Through the Federal Reserve Board over $30 billion of American money has been pumped into Germany. You have all heard of the spending that has taken place in Germany...
Modernistic dwellings, her great planetariums, her gymnasiums, her swimming pools, her fine public highways, her perfect factories. All this was done on our money. All this was given to Germany through the Federal Reserve Board. The Federal Reserve Board has pumped so many billions of dollars into Germany that they dare not name the total."
Congressman Louis T.McFadden (D-PA) who served twelve years as Chairman of the Committee on Banking and Currency.
In 1933 new President Franklin D. Roosevelt signed a bill forcing all the American people, to hand over all their gold at base rate. With the exception of rare coins. He disowned himself from the bill claiming to not have read it and his secretary of the treasury claimed this was "what the experts wanted."
Bought at bargain basement price with money produced from nothing by the Federal Reserve, the gold was melted down and stacked in the newly built bullion depository called Fort Knox. Once collected in 1935 the price of gold was raised from $20.66 up to $35 per ounce, but only non American gold qualified to be sold. This meant those who had avoided the crash by investing in gold they had shipped to London could now nearly double their money while the rest of America starved.
But that's not all folks. By the end of WWII Fort Knox did hold 70 per cent of the world's gold, but over the years it was sold off to the European money changers while a public audit of Fort Knox reserves was repeatedly denied.
Rumours spread about missing gold.
"Allegations of missing gold from our Fort Knox vaults are being widely discussed in European circles. But what is puzzling is that the Administration is not hastening to demonstrate conclusively that there is no cause for concern over our gold treasure - if indeed it is in a position to do so."
Finally in 1981 President Ronald Reagan was convinced to have a look into Fort Knox with a view to re-introducing the Gold Standard. He appointed a group called The Gold Commission. They found that the US Treasury owned no gold at all.
All the Fort Knox gold remaining is now being held as collateral by the Federal Reserve against the national debt. Using credits made from nothing. The Fed had robbed the largest treasure of gold on earth.
WORLD WAR II (1939-1945)
World War II saw the US debt increased by 598 per cent, while Japan's debt went up by 1,348 per cent, with France up by 583 per cent and Canada up by 417 per cent.
When you hear this, what is your first impression? Do you automatically think this is bad or this is good? Most of us feel a well programmed sense of desperation when we hear figures like this, but remember, to the money changers, this is music to their ears.
With the hot war over, the cold war began, the arms race causing more and more borrowing. Now the money changers could really concentrate on global domination.
Step one, the European Monetary Union and NAFTA.
Step two, centralise the global economy via the World Bank, the IMF and GATT (now the WTO).
THE WORLD CENTRAL BANK (1948 - Present)
In Washington, the headquarters of both the World Bank and the IMF (International Monetary Fund) face each other on the same street. What are these organisations, and who controls them?
To find out we need to look back to just after WWI. At this point the money changers were attempting to consolidate the central banks under the guise of peacemaking. To stop future wars they put forward the formation of a world central bank named the Bank of International Settlements, a world court called the World Court in the Hague, and a world executive for legislation called the League of Nations.
In his 1966 book entitled Tragedy and Hope, president Clinton's mentor Carroll Quigley writes about this.
"The powers of financial capitalism had [a] far-reaching [plan], nothing less than to create a world system of financial control in private hands able to dominate the political system of each country and the economy of the world as a whole.
This system was to be controlled in a feudalist fashion by the central banks of the world acting in concert, by secret agreements arrived at in frequent meetings and conferences.
The apex of the system was to be the Bank for International Settlements in Basel, Switzerland, a private bank owned and controlled by the world's central banks which were themselves private corporations.
Each central bank... Sought to dominate its government by its ability to control treasury loans, to manipulate foreign exchanges, to influence the level of economic activity in the country, and to influence cooperative politicians by subsequent economic rewards in the business world."
Carroll Quigley, Professor, Georgetown University
They got 2 out of 3. The league of nations failed largely owing to the suspicions of the people and while opposition concentrated on this, the other two proposals snuck their way through.
It would take another war to wear the public resistance down. Wall street invested heavily to rebuild Germany, as the Chase bank had propped up the Russian revolution.
Now the Chase merged with the Warburg's Manhattan Bank to form the Chase Manhattan which would later merge with the Chemical Bank to become the largest bank on Wall Street.
In 1944 the US approved its full participation in the IMF and the World Bank. By 1945 the second League of Nations was approved under the new name 'The United Nations.' The war had dissolved all opposition. The methods used in the National Banking Act of 1864 and the Federal Reserve Act of 1913 were now simply used on a Global scale.
The Federal Reserve Act allowing the creation of Federal Reserve notes is mirrored by the IMF's authority to produce money called Special Drawing Rights (SDR's). It is estimated the IMF has produced $30 billion dollars worth of SDR's so far. In the United States SDR's are already accepted as legal money, and all other member nations are being pressured to follow suit. With SDR's being partially backed by gold, a world gold standard is sneaking its way in through the back door, which comes with no objection from the money changers who now hold two-thirds of the worlds gold and can use this to structure the worlds economy to their further advantage.
We have gone from the goldsmith's fraud being reproduced on a national scale through the Bank of England and the Federal Reserve, to a Global level with the IMF and the World Bank. Unless we together stop giving these exchange units their power by our collective faith in them, the future will probably see the Intergalactic Bank and the Federation of Planets Reserve set up in much the same way.
This radical transfer of power has taken place with absolutely no mandate from the people.
Nations borrow Special Drawing Right from the International Monetary Fund in order to pay interest on their mounting debts. With these SDR's produced at no cost, the IMF charges more interest. This contrary to bold claims does not alleviate poverty or further any development. It just creates a steady flow of wealth from borrowing nations to the money changers who now control the IMF and the World Bank.
The permanent debt of Third World Countries is constantly being increased to provide temporary relief from the poverty being caused by previous borrowing.
These repayments already exceed the amount of new loans. By 1992 Africa's debt had reached $290 billion dollars, which is two and a half times greater than it was in 1980. A noble attempt to repay it has caused increased infant mortality and unemployment, plus deteriorating schools, and general health and welfare problems.
As world resources continue to be sucked into this insatiable black hole of greed, if allowed to continue the entire world will face a simular fate.
As one prominent Brazilian politician, Luis Ignacio Silva, put it.
"Without being radical or overly bold, I will tell you that the Third World War has already started - a silent war, not for that reason any the less sinister. This war is tearing down Brazil, Latin America and practically all the Third World. Instead of soldiers dying there are children, instead of millions of wounded there are millions of unemployed; instead of destruction of bridges there is the tearing down of factories, schools, hospitals, and entire economies . . . It is a war by the United States against the Latin American continent and the Third World. It is a war over the foreign debt, one which has as its main weapon interest, a weapon more deadly than the atom bomb, more shattering than a laser beam . ."1
If a group or organisation had used its hard earned money to help these developing nations, then we might sympathise that there should be a real effort to repay these loans. But the money used was created from fractional reserve banking. The money loaned to the Third World came from the 90 per cent the banks allow themselves to loan on the 10 per cent they actually held. It didn't exist, it was created from nothing, and now people are suffering and dying in an effort to pay it back.
This has gone beyond clever financing, it's whole sale murder and it's time we stopped it. We can!
If you haven't already, read XAT3 to see how.
1. Luis Ignacio Silva, at the Havana Debt Conference in August 1985, quoted by Susan George, A Fate Worse Than Death p 238
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The Journal of History - Summer 2008 Copyright © 2008 by News Source, Inc.