LJWorld.com weblogs Swampyville's - "The Banshee's Cry"
Swampyville's - "Intended Cnsequences" - The Federal Reserve Act!
"Intended Consequences" of what will happen if another trillion dollars is borrowed. The debt ratio will increase, the exchange value of the dollar will fall (making the George Sora's of the world happy). Paying back debtors with cheaper currency will result in investors (Foreign Governments using Our tax dollars) demanding higher interest rates due to the declining dollar. Paying higher interest rates would greatly reduce domestic U.S. growth. Currently the interest on the national debt is about a half a trillion dollars a year. Going further in debt will dramatically increase the interest on the national debt. With the dollar losing it's value and the increase of interests rates on the national debt, eventually it will consume every dollar the American People earn, making this nation ripe for Globalization!
The United States of America will never see a Balanced Budget Amendment passed for that would defeat the purposes of the Internationalists.
Over the last 100 years we have seen our nation go from one of self reliance to one of collective needs being provided by the government through their "Gradual (Fundamental) Reformation" of the system. I didn't happen by chance and it wasn't a conspiracy. The government indicated how this change would be accomplished. The people of this nation had and still have a terminal illness called "Complacency"!
Swampyville's Ask the Politically Correct!
Question: What was the Federal Reserve Act of 1913?
Politically Correct Resolution:
Federal Reserve Act! (Wikipedia)
The Federal Reserve Act is the Act of Congress that created the Federal Reserve System, the central banking system of the United States of America, and granted it the legal authority to issue legal tender and to set interest rates on loans to participating banks. The Act was signed into law by President Woodrow Wilson. With the passage of the Federal Reserve Act, a Fractional Reserve Banking system was also implemented; thus, the creation of false assets out of thin air!
Today, with the exception of a few small countries, all nations have a central banking system that interconnects with each other and are members of the World Banking Group headquartered in Washington D.C. and who have close ties to Wall Street and International Financial Interests.
For nearly eighty years, the U.S. was without a central bank after the charter for the Second Bank of the United States was allowed to expire. Prior to 1863 most banks were ran by the individual States. After various financial panics, particularly a severe one in 1907, some Americans (Wall Street) persuaded the people that the country needed some sort of banking and currency reform that would, when threatened by financial panics, provide a ready reserve of liquid assets, and furthermore allow for currency and credit to expand and contract seasonally within/without the U.S. economy.
Some of this was chronicled in the reports of the National Monetary Commission (1909–1912), which was created by the Aldrich–Vreeland Act in 1908. Included in a report of the Commission, submitted to Congress on January 9, 1912, were recommendations and draft legislation with 59 sections, for proposed changes in U.S. banking and currency laws. The proposed legislation was known as the Aldrich Plan, named after the chairman of the Commission, Republican Senator Nelson W. Aldrich of Rhode Island.
The Plan called for the establishment of a National Reserve Association with 15 regional district branches and 46 geographically dispersed directors (primarily from the banking profession). The Reserve Association would make emergency loans to member banks, print money, and *(act as the fiscal agent for the U.S. government). State and nationally chartered banks would have the option of subscribing to specified stock in their local association branch. It is generally believed that the outline of the Plan had been formulated in a secret meeting on Jekyll Island in November 1910, which Aldrich and other well connected financiers attended.
*The Federal Reserve System has never been a part of the government. However; it receives all government taxes and charges the people a fee for handling the tax payers money, just like any other bank!
Since the (Aldrich Plan essentially gave full control of this system to private bankers), there was strong opposition to it from rural and western states because of fears that it would become a tool of certain rich and powerful financiers in New York City, referred to as the "Money Trust". Indeed, from May 1912 through January 1913 the Pujo Committee, a subcommittee of the House Committee on Banking and Currency, held investigative hearings on the alleged Money Trust and its interlocking directorates.
In the election of 1912, the Democratic Party won control of the White House and both chambers of Congress. The party's platform stated strong opposition "to the so called Aldrich bill for the establishment of a central bank." However, the platform also called for a systematic revision of banking laws in ways (supposedly) that would provide relief from financial panics, unemployment and business depression, and would protect the public from the "domination by what is known as the Money Trust." (So they led the people to believe) That "Money Trust" still exists; however, now it's an "International Money Trust"!
The head of the bipartisan National Monetary Commission was financial expert and Senate Republican leader Nelson Aldrich. Aldrich set up two commissions—one to study the American monetary system in depth and the other, headed by Aldrich himself, to study the (European central banking systems) and report on them. Aldrich went to Europe opposed to centralized banking, but after viewing Germany's monetary system he came away believing that a centralized bank was better than the government issued bond system that he had previously supported. In other words, he got the law laid down to him by the European Banking Family that loaned "Seed Payments" to American Bankers (i.e., J.P. Morgan). Eventually, this European Banking Family owned 80% of J.P. Morgan's stock!
In early November 1910, Aldrich met (At Jekyll Island Georgia) with five well known members of the New York banking community to devise a central banking bill(scam). Paul Warburg, an attendee of the meeting and long time advocate of central banking in the U.S., later wrote that Aldrich was "bewildered" at all that he had absorbed abroad and he was faced with the difficult task of writing a highly technical bill while being harassed by the daily grind of his Senatorial duties. After ten days of deliberation, the bill, which would later be referred to as the "Aldrich Plan", was agreed upon. It had several key components including: a central bank with a Washington-based headquarters and fifteen branches located throughout the U.S. in geographically strategic locations, and a uniform elastic currency based on gold and commercial paper (Fiat money). Aldrich believed a central banking system with no political involvement was best, but was convinced by Warburg that a plan with no public control was not politically feasible. The compromise involved representation of the public sector on the Board of Directors. (They wanted the people to "think" that they were in charge)
Aldrich's bill was met with much opposition from politicians. Critics were suspicious of a central bank, and charged Aldrich of being biased due to his own wealth and close ties to wealthy bankers such as J. P. Morgan and (John D. Rockefeller, Jr., Aldrich's son-in-law). Most Republicans favored the Aldrich Plan, but it lacked enough support in Congress to pass because rural and western states viewed it as favoring the "eastern establishment". In contrast, (progressive Democrats favored a reserve system owned and operated by the government); they believed that public ownership of the central bank would end Wall Street's control of the American currency supply. Conservative Democrats fought for a privately owned, yet decentralized, reserve system, which would still be free of Wall Street's control. (Nice thought, but it never happened)
The original Aldrich Plan/scam was dealt a fatal blow in 1912, when Democrats won the White House and Congress. Nonetheless, President Woodrow Wilson believed that the Aldrich plan would suffice with a few modifications. The plan became the basis for the Federal Reserve Act, which was proposed by Senator Robert Owen in May 1913. (The primary difference between the two bills was the transfer of control of the Board of Directors called the Federal Open Market Committee in the Federal Reserve Act to the government). Even though the government had oversight of the Federal Reserve it has never actually pursued this responsibility, allowing laws to be changed later to benefit the Financial interests. The bill passed Congress in late 1913.
"One must ask themselves, does our debt based fiat money system dominate individual prosperity through inflation and is it used to promote world conflict? Does this nation's economic system underwrite a framework of central bankers donating to both sides of a conflict or revolution? And does it destroy American Sovereignty through a system of world military and financial control?". I say that it does!
"ALEA IACTA EST"! (The die has been Cast)