None dare call it conspiracy
By Gary Allen
THE MONEY MANIPULATORS
Many college history professors tell their charges that the books they will be using in the
class are "objective." But stop and ask yourself: Is it possible to write a history book
without a particular point of view?
There are billions of events, which take place in the
world each day.
To think of writing a complete history of a nation covering even a year is
Not only is a historian's ability to write an "objective" history limited by the sheer volume
of happenings, but by the fact that many of the most important happenings never appear
in the papers or even in somebody's memoirs.
The decisions reached by the "Big Boys" in
the smoke-filled rooms are not reported even in the New York Times which ostensibly
reports all the news that is fit to print. ("All the news that fits" is a more accurate
In order to build his case, a historian must select a miniscule number of facts from the
limited number that are known If he does not have a theory,' how does he separate
important facts from unimportant ones?
As Professor Stuart Crane has pointed out, this is
why every book "proves" the author's thesis, But no book is objective.
No book can be
objective; and this book is not objective. (Liberal reviewers should have a ball quoting
that out of context.)
The information in it is true, but the book is not objective.
carefully selected the facts to prove our case.
We believe that most other historians have
focused on the landscape, and ignored that which is most important: the cart, boy and
Most of the facts which we bring out are readily verifiable at any large library.
contention is that we have arranged these facts in the order which most accurately reveals
their true significance in history.
These are the facts the Establishment does not want you
Have you ever had the experience of walking into a mystery movie two-thirds of the way
Confusing wasn't it?
All the evidence made it look as if the butler were the
murderer, but in the final scenes you find out, surprisingly, that it was the man's wife all
You have to stay and see the beginning of the film.
Then as all the pieces fall into
place, the story makes sense.
This situation is very similar to the one in which millions of Americans find themselves
They are confused by current happenings in the nation.
They have come in as the
movie, so to speak, is going into its' conclusion.
The earlier portion of the mystery is
needed to make the whole thing understandable.
(Actually, we are not really starting at
the beginning, but we are going back far enough to give meaning to today's happenings.)
In order to understand the conspiracy it is necessary to have some rudimentary
knowledge of banking and, particularly, of international bankers.
While it would be an
over-simplification to ascribe the entire conspiracy to international bankers, they
nevertheless have played a key role.
Think of the conspiracy as a hand with one finger
labelled "international banking," others "foundations," "the anti-religion movement"
"Fabian Socialism," and "Communism."
But it was the international bankers of whom
Professor Quigley was speaking when we quoted him earlier as stating that their aim was
nothing less than control of the world through finance.
Where do governments get the enormous amounts of money they need?
Most, of course,
comes from taxation; but governments often spend more than they are willing to tax from
their citizens and so are forced to borrow.
Our national debt is now $455 billion on every
cent of it borrowed at interest from somewhere.
The public is led to believe that our government borrows from "the people" through
Actually, only the smallest percentage of the national debt is held by
individuals in this form.
Most government bonds, except those owned by the government
itself through its trust funds, are held by vast banking firms known as international banks.
For centuries there has been big money to be made by international bankers in the
financing of governments and kings.
Such operators are faced, however, with certain
We know that smaller banking operations protect themselves by taking
collateral, but what kind of collateral can you get from a government or a king?
the banker comes to collect and the king says, "Off with his head"?
The process through
which one collects a debt from a government or a monarch is not a subject taught in the
business schools of our universities, and most of us-never having been in the business of
financing kings-have not given the problem much thought But there is a king-financing
business and to those who can ensure collection it is lucrative indeed.
Economics Professor Stuart Crane notes that there are two means used to collateralize
loans to governments and kings.
Whenever a business firm borrows big money its
creditor obtains a voice in management to protect his investment.
Like a business, no
government can borrow big money unless willing to surrender to the creditor some
measure of sovereignty as collateral.
Certainly international bankers who have loaned
hundred' of billions of dollars to governments around the work command considerable
influence in the policies of such governments.
But the ultimate advantage the creditor has over the king or president is that if the ruler
gets out of line the banker can finance his enemy or rival.
Therefore, if you want to stay
in the lucrative king-financing business, it is wise to have an enemy or rival waiting in
the wings to unseat every king or president to whom you lend.
If the king doesn't have an
enemy, you must create one.
Preeminent in playing this game was the famous House of Rothschild.
Its founder, Meyer
Amschel Rothschild (1743-1812) of Frankfurt, Germany, kept one of his five sons at
home to run the Frankfurt bank and sent the others to London, Paris, Vienna and Naples.
The Rothschilds became incredibly wealthy during the nineteenth century by financing
governments to fight each other.
According to Professor Stuart Crane:
"If you will look back at every war in Europe during the Nineteenth Century, you will see
that they always ended with the establishment of a 'balance of power."
With every re-shuffling there was a balance of power in a new grouping around the House of Rothschild
in England, France, or Austria.
They grouped nations so that if any king got out of line a
war would break out and the war would be decided by which way the financing went.
Researching the debt positions of the warring nations will usually indicate who was to be
In describing the characteristics of the Rothschilds and other major international bankers,
Dr. Quigley tells us that they remained different from ordinary bankers in several ways:
they were cosmopolitan and international; they were close to governments and were
particularly concerned with government debts, including foreign government debts; these
bankers came to be called "international bankers." (Quigley, Tragedy and Hope, p.52)
One major reason for the historical blackout on the role of the international bankers in
political history is that the Rothschilds were Jewish.
Anti-Semites have played into the
hands of the conspiracy by trying to portray the entire conspiracy as Jewish.
could be farther from the truth.
The traditionally Anglo-Saxon J. P. Morgan and
Rockefeller international banking institutions have played a key role in the conspiracy.
But there is no denying the importance of the Rothschilds and their satellites.
is just as unreasonable and immoral to blame all Jews for the crimes of the Rothschilds as
it is to hold all Baptists accountable for the crimes of the Rockefellers.
The Jewish members of the conspiracy have used an organization called the Anti-
Defamation League as an instrument to try to convince everyone that any mention of the
Rothschilds or their allies is an attack on all Jews.
In this way they have stifled almost all
honest scholarship on international bankers and made the subject taboo within
Any individual or book exploring this subject is immediately attacked by hundreds of
A.D.L. committees all over the country.
The A.D.L. has never let truth or logic interfere
with its highly professional smear jobs.
When no evidence is apparent, the A.D.L., which
staunchly opposed so-called "McCarthyism," accuses people of being "latent anti-
Can you imagine how they would yowl and scream if someone accused them
of being "latent" Communists?
Actually, nobody has a right to be more angry at the Rothschild clique than their fellow
The Warburgs, part of the Rothschild empire, helped finance Adolph Hitler.
were few if any Rothschilds or Warburgs in the Nazi prison camps!
They sat out the war
in luxurious hotels in Paris or emigrated to the United States or England.
As a group,
Jews have suffered most at the hands of these power seekers.
A Rothschild has much
more in common with a Rockefeller than he does with a tailor from Budapest or the
Since the keystone of the international banking empires has been government bonds it
has been in the interest of these international bankers to encourage government debt.
higher the debt the more the interest Nothing drives government deeply into debt like a
war; and it has not been an uncommon practice among international bankers to finance
both sides of the bloodiest military conflicts.
For example, during our Civil War the
North was financed by the Rothschilds through their American agent, August Belmont,
and the American South through the Erlangers, Rothschild relatives.
But while wars and revolutions have been useful to international bankers in gaining or
increasing control over governments, the key to such control has always been control of
You can control a government if you have it in your debt; a creditor is in a
position to demand the privileges of monopoly from the sovereign.
governments have granted monopolies in state banking, natural resources, oil concessions
However, the monopoly which the international financiers most covet
is control over a nation's money.
Eventually these international bankers actually owned as private corporations the central
banks of the various European nations.
The Bank of England, Bank of France and Bank
of Germany were not owned by their respective governments, as almost everyone
imagines, but were privately owned monopolies granted by the heads of state, usually in
return for loans.
Under this system, observed Reginald McKenna, President of the
Midlands Bank of England:
"Those that create and issue the money and credit direct the
policies of government and hold in their hands the destiny of the people."
Once the government is in debt to the bankers it is at their mercy.
A frightening example was cited
by the London Financial Times of September 26, 1921, which revealed that even at that
"Half a dozen men at the top of the Big Five Banks could upset the whole fabric of
government finance by refraining from renewing Treasury Bills."
All those who have sought dictatorial control over modern nations have understood the
necessity of a central bank.
When the League of Just Men hired a hack revolutionary
named Karl Marx to write a blueprint for conquest called The Communist Manifesto, the
fifth plank read: "Centralization of credit in the hands of the state, by means of a national
bank with state capital and an exclusive monopoly."
Lenin later said that the
establishment of a central bank was ninety percent of communizing a country.
conspirators knew that you can not take control of a nation without military force unless
that nation has a central bank through which you can control its economy.
Bakunin sarcastically remarked about the followers of Karl Marx:
"They have one foot in
the bank and one foot in the socialist movement."
The international financiers set up their own front man in charge of each of Europe's
central banks. Professor Quigley reports:
"It must not be felt that these heads of the world's chief central banks were themselves
substantive powers in world finance. They were not. Rather, they were the technicians
and agents of the dominant investment bankers of their own countries, who had raised
them up and were perfectly capable of throwing them down. The substantive financial
powers of the world were in the hands of these investment bankers (also called
'international' or 'merchants' bankers) who renamed largely behind the scenes in their own
unincorporated (private banks.] These formed a system of international cooperation and
national dominance which was more private, more powerful, and more secret than that of
their agents in the centra lbanks… (Quigley, op. cit., pp.326-7.)
Dr. Quigley also reveals that the international bankers who owned and controlled the
Banks of England and France maintained their power even after those Banks were
Naturally those who controlled the central banks of Europe were eager from the start to
fasten a similar establishment on the United States.
From the earliest days, the Founding
Fathers had been conscious of attempts to control America through money manipulation,
and they carried on a running battle with the international bankers.
wrotetoJohnAdams:"… I sincerely believe, withyou, that banking establishments are
more dangerous than standing armies…
But, even though America did not have a central bank after President Jackson abolished it
in 1836, the European financiers and their American agents managed to obtain a great
deal of control over our monetary system.
Gustavus Myers, in his History of The Great
American Fortunes, reveals:
"Under the surface, the Rothschilds long had a powerful influence in dictating American
financial laws. The law records show that they were powers in the old Bank of the United
States [abolished by Andrew Jackson]."
During the nineteenth century the leading financiers of the metropolitan East often cut
one another's financial throats, but as their Western and rural victims started to organize
politically, the "robber barons" saw that they had a "community of interest" toward which
they must work together to protect themselves from thousands of irate farmers and up and
This diffusion of economic power was one of the main factors
stimulating the demands for a central bank by would-be business and financial
In Years of Plunder Proctor Hansl writes of this era:
"Among the Morgans, Kuhn-Loebs and other similar pillars of the industrial order there
was less disposition to become involved in disagreements that led to financial dislocation.
A community of interest came in to being, with results that were highly beneficial…"
But aside from the major Eastern centers, most American bankers and their customers
still distrusted the whole concept
In order to show the hinterlands that they were going to need a central banking system,
the international bankers created a series of panics as a demonstration of their power a
warning of what would happen unless the rest of the bankers got into line.
The man in
charge of conducting these lessons was J. Pierpont-Morgan, American-born but educated
in England and Germany. Morgan is referred to by many, including Congressman Louis
McFadden, (a banker who for ten years headed the House Banking and Currency
Committee), as the top American agent of the English Rothschilds.
By the turn of the century J. P. Morgan was already an old hand at creating artificial
Such affairs were well co-ordinated. Senator Robert Owen, a co-author of the
Federal Reserve Act, (who later deeply regretted his role), testified before a
Congressional Committee that the bank he owned received from the National Bankers'
Association what came to be known as the "Panic Circular of 1893."
It stated: "You will
at once retire one-third of your circulation and call in one-half of your loans…
Historian Frederick Lewis Allen tells in Life magazine of April 25, 1949, of Morgan's
role in spreading rumors about the insolvency of the Knickerbocker Bank and The Trust
Company of America, which rumors triggered the 1907 panic.
In answer to the question:
"Did Morgan precipitate the panic?" Allen reports:
"Oakleigh Thorne, the president of that particular trust company, testified later before a
congressional committee that his bank had been subjected to only moderate withdrawals
… that he had not applied for help, and that it was the[ Morgan's] 'sorepoint'statement
alone that had caused the run on his bank.
From this testimony, plus the disciplinary
measures taken by the Clearing House against the Heinze, Morse and Thomas banks, plus
other fragments of supposedly pertinent evidence, certain chroniclers have arrived at the
ingenious conclusion that the Morgan interests took advantage of the unsettled conditions
during the autumn of 1907 to precipitate the panic, guiding it shrewdly as it progressed so
that it would kill off rival banks and consolidate the preeminence of the banks within the
The "panic" which Morgan had created, he proceeded to end almost single-handedly.
had made his point. Frederick Allen explains:
"The lesson of the Panic of 1907 was clear, though not for some six years was it destined
to be embodied in legislation: the United States gravely needed a central banking
The man who was to play the most significant part in providing America with that central
bank was Paul Warburg, who along with his brother Felix had immigrated to the United
States from Germany in 1902.
(See Chart 4.) They left brother Max (later a major
financier of the Russian Revolution) at home in Frankfurt to run the family bank (M. N.
Warburg & Company).
Paul Warburg married Nina Loeb, daughter of Solomon Loeb of Kuhn, Loeb and
Company, America's most powerful international banking firm.
Brother Felix married
Frieda Schiff, daughter of Jacob Schiff, the ruling power behind Kuhn, Loeb.
Birmingham writes in his authoritative Our Crowd:
"In the eighteenth century the Schiffs
and Rothschilds shared a double house"
in Frankfurt. Schiff reportedly bought his
partnership in Kuhn, Loeb with Rothschild money.
Both Paul and Felix Warburg became partners in Kuhn, Loeb and Company.
In 1907, the year of the Morgan-precipitated panic, Paul Warburg began spending almost
all of his time writing and lecturing on the need for "bank reform."
Kuhn, Loeb and
Company was sufficiently public spirited about the matter to keep him on salary at
$500,000 per year while for the next six years he donated his time to "the public good."
Working with Warburg in promoting this "banking reform" was Nelson Aldrich, known
as "Morgan's floor broker in the Senate."
Aldrich's daughter Abby married John D.
Rockefeller Jr. (the current Governor of New York is named for his maternal
Nina Loeb PauIWarburg Max Warburg
Kuhn, Loeb & Co. Jekyl Island
Felix Warburg Nelson Aldrich
Freida Schiff Frank Vanderlip
Jacob Schiff "Colonial" House
After the Panic of 1907, Aldrich was appointed by the Senate to head the National
Although he had no technical knowledge of banking, Aldrich and
his entourage spent nearly two years and $300,000 of the taxpayers' money being wined
and dined by the owners of Europe's central banks as they toured the Continent
"studying" central banking.
When the Commission returned from its luxurious junket it
held no meetings and made no report for nearly two years.
But Senator Aldrich was busy
Together with Paul Warburg and other international bankers, he
staged one of the most important secret meetings in the history of the United States
Rockefeller agent Frank Vanderlip admitted many years later in his memoirs:
"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
I do not feel it is any exaggeration to speak of our secret expedition to Jekyl Island as the
occasion of the actual conception of what eventually became the Federal Reserve
The secrecy was well warranted.
At stake was control over the entire economy.
Aldrich had issued confidential invitations to Henry P. Davison of J. P. Morgan &
Company; Frank A. Vanderlip, President of the Rockefeller-owned National City Bank;
A. Piatt Andrew, Assistant Secretary of the Treasury; Benjamin Strong of Morgan's
Bankers Trust Company; and Paul Warburg.
They were all to accompany him to Jekyl
Island, Georgia, to write the final recommendations of the National Monetary
At Jekyl Island, writes B. C. Forbes in his Men Who Are Making America:
"After a general discussion it was decided to draw up certain broad principles on which
all could agree. Every member of the group voted for a central bank as being the ideal
cornerstone for any banking system." (Page 399)
Warburg stressed that the name "central bank" must be avoided at all costs.
decided to promote the scheme as a "regional reserve" system with four (later twelve)
branches in different sections of the country.
The conspirators knew that the New York
bank would dominate the rest, which would be marble "white elephants" to deceive the
Out of the Jekyl Island meeting came the completion of the Monetary Commission
Report and the Aldrich Bill.
Warburg had proposed the bill be designated the "Federal
Reserve System," but Aldrich insisted his own name was already associated in the
public's mind with banking reform and that it would arouse suspicion if a bill were
introduced which did not bear his name.
However, Aldrich's name attached to the bill
proved to be the kiss of death, since any law bearing his name was so obviously a project
of the international bankers.
When the Aldrich Bill could not be pushed through Congress, a new strategy had to be
The Republican Party was too closely connected with Wall Street.
hope for a central bank was to disguise it and have it put through by the Democrats as a
measure to strip Wall Street of its power.
The opportunity to do this came with the
approach of the 1912 Presidential election.
Republican President William Howard Taft,
who had turned against the Aldrich Bill, seemed a sure-fire bet for reelection until Taft's
predecessor, fellow Republican Teddy Roosevelt, agreed to run on the ticket of the
In America's 60 Families, Ferdinand Lundberg acknowledges:
"As soon as Roosevelt signified that he would again challenge Taft the President's defeat
Throughout the three-cornered fight [Taft-Roosevelt-Wilson] Roosevelt
had [Morgan agents Frank] Munsey and [George] Perkins constantly at his heels,
supplying money, going over his speeches, bringing people from Wall Street in to help,
and, in general, carrying the entire burden of the campaign against
Perkins and J. P. Morgan and Company were the substance of the Progressive Party;
everything else was trimming.
In short, most of Roosevelt's campaign fund was supplied by the two Morgan hatchet
men who were seeking Taft's scalp." (Pp.110-112)
The Democrat candidate, Woodrow Wilson, was equally the property of Morgan.
Gabriel Kolko in his The Triumph of Conservatism, reports:
"In late 1907 he [Wilson]
supported the Aldrich Bill on banking, and was full of praise for Morgan's role in
American society." (Page 205)
According to Lundberg:
"For nearly twenty years before
his nomination Woodrow Wilson had moved in the shadow of Wall Street." (Page 112)
Woodrow Wilson and Teddy Roosevelt proceeded to whistle-stop the country trying to
out-do each other in florid (and hypocritical) denunciations of the Wall Street "money
trust"-the same group of Insiders which was financing the campaigns of both.
Dr. Kolko goes on to tell us that, at the beginning of 1912, banking reform "seemed a
deadissue… The banking reform movement had neatly isolated itself."
resurrected the issue and promised the country a money system free from domination by
the international bankers of Wall Street.
Moreover, the Democrat platform expressly
"We are opposed to the Aldrich plan for a central bank."
But the "Big Boys" knew
who they had bought.
Among the international financiers who contributed heavily to the
Wilson campaign, in addition to those already named, were Jacob Schiff, Bernard
Baruch, Henry Morgenthau, Thomas Fortune Ryan, and New York Times publisher
The insiders' sheepdog who controlled Wilson and guided the program through Congress
was the mysterious "Colonel' Edward Mandel House, the British-educated son of a
representative of England's financial interests in the American South.
The title was
honorary; House never served in the military.
He was strictly a behind-the-scenes wire-
puller and is regarded by many historians as the real President of the United States during
the Wilson years.
House authored a book, Philip Dru: Administrator, in which he wrote
of establishing "Socialism as dreamed by Karl Marx" As steps toward his goal, House,
both in his book and in real life, called for passage of a graduated income tax and a
central bank providing "a flexible [inflatable paper] currency."
The graduated income tax
and a central bank are two of the ten planks of The Communist Manifesto.
In his The intimate Papers 0/ Colonel House, Professor Charles Seymour refers to the
"Colonel" as the "unseen guardian angel" of the Federal Reserve Act.
contains numerous documents and records showing constant contact between House and
Paul Warburg while the Federal Reserve Act was being prepared and steered through
Biographer George Viereck assures us that "The Schiffs, the Warburgs, the
Kahns,the Rockefellers,and the Morgans put their faith in House… Theirfaithwas
In order to support the fiction that the Federal Reserve Act was "a people's bill," the
insider financiers put up a smoke-screen of opposition to it.
It was strictly a case of Br'er
Rabbit begging not to be thrown into the briar patch.
Both Aldrich and Vanderlip
denounced what in actuality was their own bill.
Nearly twenty-five years later Frank
"Now although the Aldrich Federal Reserve Plan was defeated when
it bore the name Aldrich, nevertheless its essential points were all contained in the plan
that finally was adopted."
Taking advantage of Congress' desire to adjourn for Christmas, the Federal Reserve Act
was passed on December 22, 1913 by a vote of 298 to 60 in the House, and in the Senate
by a majority of 43 to 25.
Wilson had fulfilled to the insiders the pledge he had made in
order to become President.
Warburg told House,
"Well, it hasn't got quite everything we
want, but the lack can be adjusted later by administrative process."
There was genuine opposition to the Act, but it could not match the power of the bill's
Conservative Henry Cabot Lodge Sr. proclaimed with great foresight, "The
bill as it stands seems to me to open the way to a vast inflation of currency… I do not like
to think that any law can be passed which will make it possible to submerge the gold
standard in a flood of irredeemable paper currency." (Congressional Record, June 10,
After the vote, Congressman Charles A. Lindbergh Sr., father of the famous
aviator, told Congress:
"This act establishes the most gigantic trust on earth… When the President signs this act
the invisible government by the money power, proven to exist by the Money Trust
investigation,will be legalized… This is the Aldrich Bill in disguise…
The new law will create inflation whenever the trusts want inflation…
The Federal Reserve Act was, and still is, hailed as a victory of "democracy" over the
"money trust." Nothing could be farther from the truth.
The whole central bank concept was engineered by the very group it was supposed to
strip of power.
The myth that the "money trust" had been defrocked should have been
exploded when Paul Warburg was appointed to the first Federal Reserve Board-a board
which was handpicked by "Colonel" House.
Paul Warburg relinquished his $500,000 a
year job as a Kuhn, Loeb partner to take a $12,000 a year job with the Federal Reserve.
The "accidentalists" who teach in our universities would have you believe that he did it
because be was a "public spirited citizen."
And the man who served as Chairman of the
New York Federal Reserve Bank during its early critical years was the same Benjamin
Strong of the Morgan interests, who accompanied Warburg, Davison, Vanderlip et al. to
Jekyl Island, Georgia, to draft the Aldrich Bill.
How powerful is our "central bank?"
The Federal Reserve controls our money supply and
interest rates, and thereby manipulates the entire economy-creating inflation or deflation,
recession or boom, and sending the stock market up or down at whim.
Reserve is so powerful that Congressman Wright Patman, Chairman of the House
Banking Committee, maintains:
"In the United States today we have in effect two governments… We have the duly
constituted Government… Then we have an independent,uncontrolled and
uncoordinated government in the Federal Reserve System, operating the money powers
which are reserved to Congress by the Constitution."
Neither Presidents, Congressmen nor Secretaries of the Treasury direct the Federal
In the matters of money, the Federal Reserve directs them!
power of the "Fed" was admitted by Secretary of the Treasury David M. Kennedy in an
interview for the May 5, 1969, issue of U.S. News & World Report:
"Q. Do you approve of the latest credit-tightening moves?
A. It's not my job to approve or disapprove. It is the action of the Federal Reserve."
Prof. Carroll Quigley of Harvard, Princeton and Georgetown Universities wrote book
disclosing international bankers' plan to control the world from behind the political and
Quigley revealed plans of billionaires to establish dictatorship of the
super-rich disguised as workers' democracies.
J. P. Morgan created artificial panic used as excuse to pass Federal Reserve Act Morgan
was instrumental in pushing U. S. into WWI to protect his loans to British government.
He financed Socialist groups to create an all-powerful centralized government which
international bankers would control at the apex from behind the scenes.
After his death,
his partners helped finance the Bolshevik Revolution in Russia.
And, curiously enough, the Federal Reserve System has never been audited and has
firmly resisted all attempts by House Banking Committee Chairman Wright Patman to
have it audited. (N. Y. Times, Sept.14, 1967.)
How successful has the Federal Reserve System been?
It depends on your point of view.
Since Woodrow Wilson took his oath of office, the national debt has risen from $1 billion
to $455 billion.
The total amount of interest paid since then to the international bankers
holding that debt is staggering, with interest having become the third largest item in the
Interest on the national debt is now $22 billion every year, and climbing
steeply as inflation pushes up the interest rate on government bonds.
Meanwhile, our gold
is mortgaged to European central banks, and our silver has all been sold.
catastrophe imminent, only a blind disciple of the "accidental theory of history" could
believe that all of this has occurred by coincidence.
When the Federal Reserve System was foisted on an unsuspecting American public, there
were absolute guarantees that there would be no more boom and bust economic cycles.
The men who, behind the scenes, were pushing the central bank concept for the
international bankers faithfully promised that from then on there would be only steady
growth and perpetual prosperity.
However, Congressman Charies A. Lindberg Sr.
"From now on depressions will be scientifically created."
Using a central bank to create alternate periods of inflation and deflation, and thus
whipsawing the public for vast profits, had been worked out by the international bankers
to an exact science.
Having built the Federal Reserve as a tool to consolidate and control wealth, the
international bankers were now ready to make a major killing.
Between 1923 and 1929,
the Federal Reserve expanded (inflated) the money supply by sixty-two percent.
this new money was used to bid the stock market up to dizzying heights.
At the same time that enormous amounts of credit money were being made available, the
mass media began to ballyhoo tales of the instant riches to be made in the stock market.
According to Ferdinand Lundberg:
"For profits to be made on these funds the public had to be induced to speculate, and it
was so induced by misleading newspaper accounts, many of them bought and paid for by
the brokers that operated the pools…"
The House Hearings on Stabilization of the Purchasing Power of the Dollar disclosed
evidence in 1928 that the Federal Reserve Board was working closely with the heads of
European central banks.
The Committee warned that a major crash had been planned in
At a secret luncheon of the Federal Reserve Board and heads of the European
central banks, the committee warned, the international bankers were tightening the noose.
Montagu Norman, Governor of the Bank of England, came to Washington on February 6,
1929, to confer with Andrew Mellon, Secretary of the Treasury.
On November 11, 1927,
the Wall Street Journal described Mr. Norman as "the currency dictator of Europe."
Professor Carroll Quigley notes that Norman, a close confidant of J. P. Morgan, admitted:
"I hold the hegemony of the world."
Immediately after this mysterious visit, the Federal
Reserve Board reversed its easy-money policy and began raising the discount rate.
balloon which had been inflated constantly for nearly seven years was about to be
On October 24, the feathers hit the fan.
Writing in The United States' Unresolved
Monetary and Political Problems, William Bryan describes what happened:
"When everything was ready, the New York financiers started calling 24 hour broker call
loans. This meant that the stockbrokers and the customers had to dump their stock on the
market in order to pay the loans. This naturally collapsed the stock market and brought a
banking collapse all over the country because the banks not owned by the oligarchy were
heavily involved in broker call claims at this time, and bank runs soon exhausted their
coin and currency and they had to close. The Federal Reserve System would not come to
their aid, although they were instructed under the law to maintain an elastic currency."
The investing public, including most stock brokers and bankers, took a horrendous blow
in the crash, but not the insiders.
They were either out of the market or had sold "short"
so that they made enormous profits as the Dow Jones plummeted.
For those who knew
the score, a comment by Paul Warburg had provided the warning to sell.
came on March 9, 1929, when the Financial Chronical quoted Warburg as giving this
"If orgies of unrestricted speculation are permitted to spread too far . the ultimate collapse
is certain… to bring about a general depression in volving the whole country."
Sharpies were later able to buy back these stocks at a ninety percent discount from their
To think that the scientifically engineered Crash of '29 was an accident or the result of
stupidity defies all logic.
The international bankers who promoted the inflationary
policies and pushed the propaganda which pumped up the stock market represented too
many generations of accumulated expertise to have blundered into "the great depression."
Congressman Louis McFadden, Chairman of the House Banking and Currency
"It [the depression] was not accidental. Itwas a carefully contrived occurrence… The
international bankers sought to bring about a condition of despair here so that they might
emerge as the rulers of us all."
Although we have not had another depression of the magnitude of that which followed
1929, we have since suffered regular recessions.
Each of these has followed a period in
which the Federal Reserve tromped down hard on the money accelerator and then
slammed on the brakes.
Since 1929 the following recessions have been created by such
1936-1937 — Stock Prices fell fifty percent;
1948 — Stock prices dropped sixteen percent;
1953 — Stock declined thirteen percent;
1956-1957 — The market dipped thirteen percent;
1957 — Late in the year the market plunged nineteen percent;
1960 — The market was off seventeen percent;
1966 — Stock prices plummeted twenty-five percent;
1970 — The market plunged over twenty-five percent.
Chart 5, based on one appearing in the highly respected financial publication, indicator
Digest of June 24, 1969, shows the effects on the Dow-Jones Industrial Average of
Federal Reserve policies of expanding or restricting the monetary supply.
This is how the
stock market is manipulated and how depressions or recessions are scientifically created.
If you have inside knowledge as to which way the Federal Reserve policy is going to go,
you can make a ton of money.
The members of the Federal Reserve Board are appointed by the President for fourteen
Since these positions control the entire economy of the country they are far
more important than cabinet positions, but who has ever heard of any of them except
possibly Chairman Arthur Burns?
These appointments which should be extensively
debated by the Senate are routinely approved.
But, here, as in Europe, these men are mere
figureheads, put in their positions at the behest of the international bankers who finance
the Presidential campaigns of both political parties.
And, Professor Quigley reveals that these international bankers who owned and
controlled the Banks of England and France maintained their power even after those
banks were theoretically socialized.
The American system is slightly different, but the net
effect is the same ever increasing debt requiring ever-increasing interest payments,
inflation and periodic scientifically created depressions and recessions.
The end result, if the Insiders have their way, will be the dream of Montagu Norman of
the Bank of England
"that the Hegemony of World Finance should reign supreme over
everyone, everywhere, as one whole super-national control mechanism." (Montagu
Norman by John Hargrave, Greystone Press, N.Y., 1942.)