The Money Masters - Report

The
Money
Summa
Masters
ry
How
The movie, The Money Masters, traces the history of international
money, specifically the dollar, and how and why the
economy is controlled, why we have business cycles, why bankers
inflation and deflation occur, and offers suggestions as to
how we can repay the debt and break free from the control
gained
of financial institutions control of
America
Submitted by:
Abdul Qadir Arsalan Vohra Hammad Rashid Kashif A Khan Razia Pukhraj Samiya Illias
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Submitted to:
Mr Farrukh Hassan, Faculty MacroEconomics
Pakistan Institute of Management
2
Term Assignment: The Money Masters
Assigned by: Mr Farrukh Hassan

Faculty, MacroEconomics
Pakistan Institute of Management
Batch: 2009-A
Dated: Term ending December 2009
Presented and submitted on: 11th December 2009
Group Members:
Abdul Qadir 52114

Arsalan Vohra 82003
Hammad Rashid 91017
Kashif Ahmed Khan 81047
Razia Pukhraj 91022
Samiya Illias 91007
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Contents
Introduction................................................................................................................ 4
Summaries................................................................................................................. 5
Intro till Title 7 by Arsalan Vohra.............................................................................5
Preamble to the Report........................................................................................5
Section 1-7 Summary ..........................................................................................6
Title 8-16 by Kashif Ahmed Khan...........................................................................16
Title 17-19 by Razia Pukhraj..................................................................................24
Title 20-23 by Abdul Qadir ....................................................................................35
Title 24-26 by Hammad Rashid.............................................................................42
Structural explanations......................................................................................43
Conclusion (Title 27 till end) by Samiya Illias........................................................46
Global Governance plans...................................................................................48
The other side of the story.......................................................................................51
Federal Reserve System .......................................................................................51
Conspiracy claims..................................................................................................55
References................................................................................................................58
Official Site............................................................................................................ 58
Script..................................................................................................................... 58
Videos.................................................................................................................... 58
More web links.......................................................................................................58
Islamic scholar, Dr Khalid Zaheer on Riba.............................................................59
Images................................................................................................................... 59
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Introduction
1
THE MONEY MASTERS is a 3 1/2 hour non-fiction, historical documentary that traces the origins of the
political power structure. The modern political power structure has its roots in the hidden manipulation and
accumulation of gold and other forms of money. The development of fractional reserve banking practices
in the 17th century brought to a cunning sophistication the secret techniques initially used by goldsmiths
fraudulently to accumulate wealth. With the formation of the privately-owned Bank of England in 1694,
the yoke of economic slavery to a privately-owned "central" bank was first forced upon the backs of an
entire nation, not removed but only made heavier with the passing of the three centuries to our day.
Nation after nation has fallen prey to this cabal of international central bankers.
The success of the central banking scheme developed into a far-reaching plan described by President
Clinton's mentor, Georgetown Professor Carroll Quigley, ”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 levels of economic activity in the country, and to influence cooperative
politicians by subsequent economic rewards in the business world."
Several short-lived attempts to impose the central banking scheme on the United States were defeated by
the patriotic efforts of Presidents Madison, Jefferson, Jackson, Van Buren and Lincoln. But with the
passage of the Federal Reserve Act of 1913, America was firmly lashed to the same yoke, so that a small
number of very rich men have been able to lay upon the masses a yoke little better than slavery itself.
That yoke inevitably grows heavier with ever-compounding interest, and totals over $20 trillion of debt
owed by the American people today ($80,000 per American) ultimately to these bankers.
This vast accumulation of wealth concentrates immense power and despotic economic domination in the
hands of the few central bankers "who are able to govern credit and its allotment, for this reason
supplying, so to speak, the life-blood to the entire economic body, and grasping, as it were, in their hands
the very soul of the economy so that no one dare breathe against their will."
Segments: The Problem; The Money Changers; Roman Empire; The Goldsmiths of Medieval England;
Tally Sticks; The Bank of England; The Rise of the Rothschilds; The American Revolution; The Bank of
North America; The Constitutional Convention; First Bank of the U.S.; Napoleon's Rise to Power; Death of
the First Bank of the U.S. / War of 1812; Waterloo; Second Bank of the U.S.; Andrew Jackson; Abe
Lincoln and the Civil War; The Return of the Gold Standard; Free Silver; J.P. Morgan / 1907 Crash; Jekyll
Island; Fed Act of 1913; J.P. Morgan / WWI; Roaring 20s / Great Depression; FDR / WWII / Fort Knox;
World Central Bank; Conclusions.
1
http://www.themoneymasters.com/synopsis.htm
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Summaries
Intro till Title 7 by Arsalan Vohra
Preamble to the Report

Subject of the documentary: The genesis of the International Banking System – A deliberate attempt to ensure world
supremacy, through (not necessarily in the same order):
1 Fractional Reserve Banking
2 Constant indebtedness of individual and government through lending
3 War or War like situation
4 Printing of Money
5 Controlling Inflation
6 Controlling Exchange Rates
7 Controlling Federal Reserve
8 Global Financial Crisis
9 The facts and myths surrounding gold and gold standards
Sources for this report (Limited to first 7 acts of the documentary): Except for the preamble, rest is all summary extracts from the script of the
documentary. Presentation and the interactive session that is expected to ensue, would be a mix of relevant narration (from the documentary)
and the individual / groups own deduction on the matter / relevant point.
INTERESTING STATISTICS
Directed and Researched by Patrick Carmack (Lawyer) and Bill Still : [MORE]
Presented by : Peter Myers, A veteran Narrator
Word count for the script approx. 32,500
Running time is 3 15 minutes
Originally made in 1995-6, updated / reviewed 1999, 2003 and 2009.
OTHER FACTS (FOR PERSPECTIVE)
Substantiating their predictions from this documentary, a letter (referring to the 700 Million $ US government bail-
out package) was addressed to the general American Citizen by the authors of this documentary, soon after the
global crisis of the last couple of years.
Both Pat and Bill Still endorse the official version of the US government on 9/11.
INFERENCE
Target Audience:
The movie is generally meant for the US and European markets, with target audience being the middle class.
Possible outcome expected by the authors of this documentary is public pressure to redo / undo the monetary policy.
Publicity.
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The headings below have been mentioned in sequence of their narration in the script. Very minor changes
may have been made, with the sole intention of making them 'easy to read and comprehend'; Nothing
substantial.
Section 1-7 Summary

Freedom of Individuals, and of states, to conduct their own affairs
 Sovereignty and Indebtedness.
 Property ownership (net wealth) is not a general feature of our society, as it was before the American
Civil War, and largely was still until the Great Depression. Rather, net debt and complete dependence
on a precarious wage or salary at the will of others is the general condition.
To restore a condition of widespread, modest wealth is therefore essential to regain and preserve our
freedom.
 Ethical/ Moral values. Religious concepts.
Why a depression is expected, who's behind it, what they want, and how the perpetrators plan on protecting
their families.
 Fractional Reserve Banking. Inflation. Money Supply.
The Federal Reserve Act 1913

 Control of the money supply from Congress {Public Representative} to a private banking elite.
 The financial system ... has been turned over to the Federal Reserve Board. That board administers the
finance system by authority of ... a purely profiteering group. The system is private, conducted for the sole
purpose of obtaining the greatest possible profits from the use of other people's money
 "Most Americans have no real understanding of the operation of the international moneylenders ... The
accounts of the Federal Reserve System have never been audited. It operates outside the control of
Congress and ... manipulates the credit of the United States"
 "The Fed really is more powerful than the federal government. It is more powerful than the President,
Congress or the courts. Let me prove my case. The Fed determines what the average person's car payment
and house payment is going to be and whether they have a job or not. And I submit to you - that is total
control. The Fed is the largest single creditor of the U.S. government. What does the Proverb tell us?
The borrower is servant to the lender." - Larry Bates
 What one has to understand is that from the day the Constitution was adopted right up to today, the folks
who profit from privately owned central banks, like the Fed, or, as President Madison called them, the
"Money Changers", have fought a running battle for control over who gets to issue America's money.
Whoever issues the money – Why is it so important?
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 Think of money as just another commodity. If you have a monopoly on a commodity that everyone needs,
everyone wants, and nobody has enough of, there are lots of ways to make a profit and also exert
tremendous political influence.
World Domination – A perspective
 A few years ago, three-quarters of the majority stockholders of ABC, CBS, NBC and CNN were banks,
such as Chase Manhattan Corp., Citibank, Morgan Guaranty Trust and Bank of America; ten such
corporations controlled 59 magazines (including Time and Newsweek), 58 newspapers (including the New
York Times, the Washington Post, the Wall Street Journal), and various motion picture companies, giving
the major Wall Street banks virtually total ownership of the mass media, with few exceptions (such as the
Disney Company's purchase of ABC).
 Press control, and later electronic media control (radio and TV), was seized in carefully planned steps,
yielding the present situation in which all major mass media and the critically important major reporting
services, which are the source of most news and upon which most news is based, are controlled by the
Money Changers.
Brief History
 When Jews came to Jerusalem to pay their Temple tax, they could only pay it with a special coin, the half
shekel
 Two early Roman emperors had tried to diminish the power of the Money Changers by reforming usury
laws and limiting land ownership to 500 acres. They both were assassinated. In 48 B.C., Julius Caesar took
back the power to coin money from the Money Changers and minted coins for the benefit of all. With this
new, plentiful supply of money, he built great public works projects. By making money plentiful, Caesar
won the love common man. But the Money Changers hated him. Some believe this was an important factor
in Caesar's assassination.
 THE GOLDSMITHS OF MEDIEVAL ENGLAND.
 The Chinese were the first to use paper money, known as "Flying Money," (a kind of banker's draft) in 618-
907 A.D. About 1000 A.D. private Chinese merchants in Sichuan province issued paper money known as
Jiao Zi. Due to fraud, the right to issue paper money was taken over by the Song dynasty in 1024, which
then issued the first government paper money.
 About that same time, Money Changers - those who exchange, create and manipulate the quantity of
money - were active in medieval England. In fact, they were so active that acting together, they could
manipulate the English economy. These were not bankers, per se. The Money Changers generally were he
goldsmiths.
 They were the first bankers because they started keeping other people's gold for safekeeping in their safe
rooms, or vaults.
 The first paper money in Western Europe was merely receipts for gold left at the goldsmiths, made from
rag paper as the ditty goes:
 "Rags make paper; paper makes money; money makes banks; banks make loans; loans make
beggars; beggars make rags."
 Paper Money
 Paper money caught on because it was more convenient and safer to carry than a lot of heavy gold and
silver coins. As a convenience, to avoid an unnecessary trip to the goldsmiths, depositors began endorsing
these gold deposit receipts to others, by their signature.
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 Over time, to simplify the process the receipts were made out "to the bearer", rather than to the
individual depositor, making them readily transferable without the need for a signature. This,
however, broke the tie to any identifiable deposit of gold.
 Eventually goldsmiths noticed that only a small fraction of the depositors or bearers ever came in
and demanded their gold at any one time. Goldsmiths started cheating on the system.
 They began by secretly lending out some of the gold that had been entrusted to them for
safekeeping, and keeping the interest earned on this lending.
 Then the goldsmiths discovered that they could print more money (i.e. paper gold deposit
certificates) than they had gold and usually no one would be the wiser. Then, they could loan out
this extra paper money and collect interest on it. This was the birth of fractional reserve lending -
that is, loaning out more money than you have reserves on deposit. Obviously, it was fraud, often
specifically outlawed, once understood.
 Fractional Reserve Banking
 The goldsmiths began with relatively modest cheating, loaning out only two or three times in gold
deposit certificates the amount of gold they actually had in their safe rooms. But they soon grew
more confident, and greedier, loaning out four, five, even ten times more gold certificates than
they had gold on deposit.
 So, for example, if $1,000 in gold were deposited with them, they could loan out about $10,000 in
paper money and charge interest on it, and no one would discover the deception. By this means,
goldsmiths gradually accumulated more and more wealth and used this wealth to accumulate more
and more gold.
 It was this abuse of trust, a fraud, which, after being accepted as standard practice, evolved into
modern deposit banking. It is still a fraud and an unjust and unreasonable delegation of a sovereign
government function - money creation - to private banks.
 Today, this practice of loaning out more money than there are reserves is known as fractional
reserve banking. In other words, banks have only a small fraction of the reserves on hand needed
to honor their obligations. Should all their account holders come in and demand cash, the banks
would run out before even three percent have been paid. That is why banks always live in dread
fear of "bank runs". To banks, fractional reserve loans,
 "... are a bright joy as brittle as glass accompanied by the haunting fear of a sudden
break."
 Crux of the Problem

 Banks, privately-owned, are permitted to loan out 90% of this new Fed-created money once it is deposited
by the sellers of the bonds. That would not be a problem, except for the fact that the borrowers almost
always redeposit the money (or the people they pay with their loan proceeds do). Once re-deposited, the
banks can lend it out again. This re-loan, redeposit, re-loan, redeposit, etc. scheme, authorized by the
Federal Reserve Act of 1913, allows banks each time to retain just 10% of the re-deposited loan proceeds
as a reserve, ultimately allowing banks to lend out 9 times the original amount deposited, and to charge
interest on it as many times as it was loaned. So instead of an interest rate of, for example, 6%, the banks
may be collectively receiving a total of 54% interest per year (6% x 9; usually it is somewhat less due to the
lack of qualified borrowers). Now you know why banks grow and prosper much more than other
businesses, that is, until they have stretched the spring to the maximum.
 Once the economy is flooded with the bank-created money 9 times in excess of the money
originally created by the Fed, an expansion that increases the money supply, which reduces the
purchasing power of already-existing money (including wages and savings), interest rates begin to
drop (as there is more money to lend) and prices rise (inflation). The dollar begins to fall relative
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to the money of other countries not in this same stage of money expansion. Money begins to flow
out of US Treasury bonds (due to lower interest rates and the lessening purchasing power of the
dollar due to inflation). Thus ends the expansionary or "boom" part of this artificial "business
cycle." To combat rising inflation and the falling dollar, the Fed begins raising interest rates.
 Then the spring of the economy - the money supply - having been stretched to the maximum,
begins its contraction, usually initiated by rising interest rates reaching a point that begins to
inhibit borrowing and also inflation. The economic "bust" part of the cycle begins. Loans dwindle
as interest rates rise and credit terms tighten. Various segments of the economy, accustomed to
easy credit, begin to contract due to higher interest rates; loans become harder to get. Home prices
fall, businesses begin to fail, bankruptcies increase. This "bust" part of the cycle continues, and
worsens, until inflation is "tamed," prices stabilize, and the dollar rises relative to other currencies.
Eventually, the higher interest rates begin to attract foreign money, and the Treasury then is able to
borrow what it needs at lower and lower interest rates. Interest rates fall. The artificial cycle then
begins anew.
 This boom-bust economic cycle is totally unnecessary and is the fundamental cause of the inherent
instability in our economy. It is due to too-rapid increases in the money supply due to deficit
spending and then the multiplier effect of fractional reserve banking (described above) and to
lenders greedy to take advantage of such a system that rewards lending with more and more
interest revenue; followed by a too-rapid contraction of the money supply (such as we are
experiencing now), necessary to combat the inflationary effects of the former phase, both the
direct result of the Federal Reserve Act of 1913. We urgently need to reform this system that
rewards greed and results in ever-increasing swings from boom-to-bust - destroying ordinary
businesses and farms in the process. We need to repeal or fundamentally reform the Federal
Reserve Act of 1913, and to replace it with a system that eliminates the ability of private banks to
"create" and multiply money as loans.
 The major banks of this country - the ones the government is lending your money to, and from
which the Bailout Bill proposes to buy their bad assets (wouldn't you too like the opportunity to
sell off your bad investments to the government!), are busily swallowing up the banks in trouble in
this latest bust - one deeper because of more rapid prior monetary expansion and inflation. As after
all prior bust cycles, they will emerge larger and more powerful, and fewer. Wealth will be even
more concentrated under their control, which they will use in the next bust to further this process,
until eventually no one will own anything but the ability to borrow - to go deeper into debt to
banks than their neighbors. Not savings, but credit scores will determine the average American's
ability to engage in economic activity (such as buying a home or car). No one will dare breathe a
word against such power, concentrated in very few hands, and our republic will end with a
whimper.
 Our Congress struggles with ignorance of the complex, bank-created system enacted in 1913. It
struggles with the money the bank PACs flood into the political system to defeat their critics and
elect their shills. It struggles with mass media owned or controlled by the banks, which seek to stir
up panic in the populace, to stampede Congress into bank-developed "solutions" that only make
the fundamental problems worse and increase their wealth. Based on history, the banks will not
fail to see-saw the economy and the markets to match their strategies for fooling the public, and
putting pressure on the Congress to do their will. But we must resist. We must hold out for
genuine reform - for repeal or fundamental reform of the Federal Reserve Act of 1913.
 Here is a hyperlink to one such reform proposal, the Monetary Reform Act. It is not the only
possible reform, but it is one developed, in its essentials, over many years by numerous monetary
reformers including the late Nobel Laureate, Dr. Milton Friedman. Any genuine reform of our
monetary system must include two basic elements: fractional reserve lending (such as described
above) must be prohibited, and private banks must be forbidden from creating money, whether as
loans or otherwise. The Monetary Reform Act does both. It also incorporates means of doing this
that include paying off the huge national debt, and stabilizing the economy.
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 the fundamental cause of the inherent instability in banking, stock markets and national
economies.
 The banks in the United States are allowed to loan out at least ten times more money they actually
have. That's why they do so on charging let's say 8% interest. It's not really 8% per year which is
their interest income on money the government issues. It's 80%. That's why bank buildings are
always the largest in town. Every bank is, de facto, a private mint (over 10,000 in the U.S.),
issuing money as loans, for nothing, at no cost to them, except whatever interest they pay
depositors.
 Rather than issue more gold certificates than they have gold, modern bankers simply make more
loans than they have currency (cash). They do this by making book entries creating loans to
borrowers out of thin air (or rather, ink).
 To give a modern example: A $10,000 bond purchase by the Fed on the open market results in a
$10,000 deposit to the bond seller's bank account. Under a 10% (i.e. fractional) reserve
requirement, the bank need keep only $1,000 in reserve, and may lend out $9,000. This $9,000 is
ordinarily deposited by the borrower in either the same bank or in other banks, which then must
keep 10% ($900) reserve, and may lend out the other $8,100. This $8,100 is in turn deposited in
banks, which must keep 10% ($810) in reserve, and then may lend out $7,290, and so on.
 Carried to the theoretical limits, the initial $10,000 created by the Fed, is deposited in numerous
banks in the banking system, which gives rise (in roughly 20 repeated stages) to expansion of
$90,000 in new loans, in addition to the $10,000 in reserves.
 Practical Application of Fractional Reserve Banking

 The banking system, collectively, multiplies the $10,000 created by the Fed by a factor of 10.
However, less than 1% of the banks create over 75% of this money. In other words, a handful of
the largest Wall Street banks create money, as loans, literally by the hundred billion, charging
interest on these loans, leaving crumbs for the rest of the banks to create. But because those
crumbs represent billions too, the lesser bankers rarely grumble. Rather, they too support this
corrupt system, with rare exceptions.
 In actual practice, due to numerous exceptions to the 10% reserve requirement, the banking system
multiplies the Fed's money creation by several magnitudes over 10 times (e.g. the Fed requires
only 3% reserves on deposits under c. $50 million, and no reserves on Eurodollars and non
personal time deposits).
 Thus the U.S. currency and bank reserve total of roughly $600 billion, supports a total debt
structure in the U.S. of over $20 trillion in debt - roughly $80,000 in debt for every American,
man, woman and child, which includes the national debt, bank debt, credit card debt, home
mortgages, etc.
 The Fed created only roughly 3% of this total, private banks created roughly 97% (including intra-
government debt). All of this could and should have been created by the U.S. government, without
the parallel creation of an equivalent quantity of interest-bearing debt, over the years and used to
pay for government expenditures, thus reducing taxes accordingly.
 MORAL ISSUES
 But does all of this mean that all interest or all banking should be illegal? No. In the Middle Ages, Canon
law, the law of the Catholic Church, forbade charging interest on loans. This concept followed the
teachings of Aristotle as well as of Saint Thomas Aquinas.

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 They taught that the purpose of money was to serve the members of society as a medium of exchange to
facilitate the exchange of goods needed to lead a virtuous life. Interest, in their belief, hindered this purpose
by putting an unnecessary and inequitable burden on the use of money. In other words, interest was
contrary to reason and justice.
 Reflecting Church Law in the Middle Ages, all European nations forbade charging interest, except on
productive loans (i.e. on loans generating a profit to be shared with the lenders as their "interest", as a
partner, or "silent investor at risk", as we would say today), and made it a crime called usury.
 As commerce grew and therefore opportunities for investment arose in the late Middle Ages, it came to be
that to loan money had a cost to the lender in lost gain given up, and in risks. So such "extrinsic" charges
were allowed, as was profit-sharing on productive investments, but not interest per se as pure (or
"intrinsic") gain from a loan.
 But all moralists, no matter what religion or what their position on usury, condemn fraud, oppression of the
poor and injustice as dearly immoral. As we will see, fractional reserve lending is rooted in a fraud, results
in widespread poverty, oppression of the poor, and reduces the value of everyone else's money. Ignorance
of this technique has largely silenced moral condemnation of it.
 Unfortunately, a few schools of some religions, limit their condemnation of fraud, oppression and injustice
to that conducted against their own people, only. This deplorable limitation, which arises out of an
exclusiveness in justice and charity, is one of the causes of this banking problem. Other peoples inevitably
come to be regarded as inferior or even subhuman.
 This inevitably results in a weltanschauung or world view, according to which "peace" means the
predominance of the "superior" peoples and the "superior" race - a gross form of crude materialism which
is merely a concealed nationalism, even though it condemns the defensive nationalism it arouses in others.
But the principal determinants of nationalism, in its last analysis, are merely psychological and variable,
not any inherent "superiority".
 Men forget that the human species is one great human race with a common origin, a common end, and
equality of rational nature, in which there are no special "higher races", as linguistics, genetics,
anthropology and other sciences increasingly affirm.
 Even if there were superior races, surely they should be measured by excellence in virtue, not in cunning
and deceit. But as it is, the differences in peoples should serve to enrich and embellish the human race by
the sharing of their own peculiar gifts and by the reciprocal interchange of goods.
 To return to the goldsmiths: they also discovered that extra profits could be made by "rowing" the economy
between easy money and tight money. When they made money easier to borrow, then the amount of money
in circulation expanded. Money was plentiful. People took out more loans to expand their businesses. But
then the goldsmiths would tighten the money supply. They would mal loans more difficult to get.
 What would happen? Just what happens today. A certain percentage of people could not repay their
previous loans, and could not take out new loans to repay the old on. Therefore they went bankrupt, and
had to sell their assets to the goldsmiths or at auction for pennies on the dollar.
 The same thing is still going on today, or today we call this rowing of the economy, up and down, the
"Business Cycle," or more recently in the stock markets, "corrections".
 Talli Sticks
 At that time, long before the invention of the printing press, taxes were generally paid in kind - i.e.
in goods, based on the productive capacity of the land under the care of the tax-paying serf or
lesser noble. To record production, medieval European scribes used a crude accounting device -
notches on sticks or "tallies" (from the Latin talea meaning "twig" "stake"). Tally sticks worked
better than faulty memory or notches on barn doors, as were sometimes used.
 To prevent alteration or counterfeiting, the sticks were cut in half lengthwise, leaving one half of
the notches on each piece, one of which was given to the taxpayer, which could compared for
accuracy by reuniting the pieces. Henry adopted this method of tax record keeping in England.
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 tallies were issued by the government in advance of taxes being paid in order to raise finds in
emergencies or financial straits. The recipients would accept such tallies for goods sold at a profit
or for coin, at a discount, and then would use them later, at Easter or Michaelmas, for the payment
of the taxes. Thus, tallies took on some of the same functions as coin - they served as money for
the payment of taxes.
 After 1694 the government issued paper 'tallies" as paper evidence of debt (i.e. government
borrowing) in anticipation of the collection of future taxes. Paper could be made easily negotiable,
which made them the full equivalent of the paper bank note money issued by the Bank of England
beginning in 1694. By 1697 tallies, bank notes and bank bills all began to circulate freely as
interchangeable forms of money. Wooden stick tallies continued to be used until 1826. Doubtless,
ways were found to make them circulate at discounts too, like the paper tallies.
 Why would people accept sticks of wood for money? That's a great question. Throughout history,
people have traded anything they thought had value and used that for money. You see, the secret is
that money is only what people agree on to use as money. What's our paper money today? It's
really just paper.
 Although control over money was not the only cause of the English Revolution in 1642
 {p. 14} - religious differences fueled the conflict - monetary policy played a major role. Financed
by the Money Changers, Oliver Cromwell finally overthrew King Charles, purged Parliament, and
put the King to death.
 The Money Changers were immediately allowed to consolidate their financial power. The result
was that for the next fifty years the Money Changers plunged Great Britain into a series of costly
wars. They took over a square mile of property in the center of London, known as The City. This
semi-sovereign area today is still one of the two predominant financial centers of the world (with
Wall Street). It is not under the jurisdiction of the London police, but has its own private force of
2,000 men.
 Conflicts with the Stuart kings led the Money Changers in England to combine with those in the
Netherlands, which already had a central bank established by the Money Changers in Amsterdam
in 1609, to finance the invasion of William of Orange, who overthrew the legitimate Stuarts in
1688. England was to trade masters: an unpopular King James II, for a hidden cabal of Money
Changers pulling the strings of their usurper, King William III ("King Billy"), from behind the
scenes.
 This symbiotic relationship between the Money Changers and the higher British aristocracy
continues to this day. The Monarch has no real power, but serves as a useful shield for the Money
Changers who rule The City, dominated by the banking House of Rothschild:
 "in theory still a real monarch, although in reality only a convenient puppet, to be used by the
cabinet (The City) at pleasure to suit their awn ends; not able even to exercise the power of pardon
that is a prerogative of a governor of an American state and of the President of the United States."
 Bank of England
 By the end of the 1600s, England was in financial ruin. Fifty years of more or less continuous wars
with France and sometimes the Netherlands had exhausted her.
 a government-sanctioned, privately-owned central which could issue money created out nothing,
as loans. It was to be the modern world's first privately-owned, national central bank in a powerful
country, the Bank of England, though earlier deposit banks had existed in
 With the formation of the Bank of England, the nation was soon awash in money. Prices
throughout the country doubled. Massive loans were granted for just about any wild scheme. One
venture proposed draining the Red Sea to recover gold supposedly lost when the Egyptian army
drowned pursuing Moses and the Israelites.
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 By 1698, just four years later, government debt had grown from the initial 1-1/4 million pounds to
16 million. Naturally, taxes were increased and then increased again to pay for all this.
 Rothschild
 This is Frankfort, Germany. Fifty years after the Bank of England opened its doors, a goldsmith
named Amschel Moses Bauer opened a coin shop - a counting house - in 1743, and over the door
he placed sign depicting a Roman eagle on a red shield. The shop became known as the Red
Shield firm, or in German Rothschild.
 When his son, Meyer Amschel Bauer, inherited the business, he decided to change name to
Rothschild.
 Meyer Rothschild soon learned that loan money to governments and kings was more profitable
than loaning to private individuals. Not only were the loans bigger, but they were secured by the
nation's taxes.
 Meyer Rothschild had five sons. He trained them all in the secret techniques of money creation
and manipulation, then sent them to the major capitals of Europe to open branch offices of the
family banking business. Iis directed that one son in each generation was to rule the family
business; women were excluded.
 His first son, Amschel, stayed in Frankfort to mind the hometown bank. His second son, Salomon
was sent to Vienna. His third sob, Nathan was clearly the most clever. He was
 {p. 17} sent to London at age 21 in 1798, a hundred years after the founding of the Bank of
England. His fourth son, Karl, went to Naples. His fifth son, Jakob (James), went to Paris.
 "There is evidence that when the five brothers spread out to the five provinces of the financial
empire of Europe, they had some secret help for the accumulation of these enormous sums ... that
they were the treasurers of this first Comintern .. But others say, and I think with better reason,
that the Rothschilds were not the treasurers, but the chiefs .. " - C.G. Rakovsky
 In 1785, Meyer moved his entire family to a larger house, a five story dwelling he shared with the
Schiff family. This house was known the "Green Shield" house. The Rothschilds and the Schiffs
would play a central role in the rest of European financial history, and in that the United States and
the world. The Schiffs' grandson moved to New York and helped fund the Bolshevik coup d 'etat
in 1917 in Russia.
 The Rothschilds broke into dealings with European royalty in Wilhelmshohe, the palace ofthe
wealthiest man in Germany - in fact, tbe wealthiest monarch in all of Europe - Prince William of
Hesse-Cassel.
 At first, the Rothschilds were only helping William speculate in precious coins. But when
Napoleon chased Prince William into exile, William sent £550,000 (a gigantic sum at that time,
equivalent to many millions of current U.S. dollars) to Nathan Rothschild in London with
instructions from him to buy Consola - British government bonds also called government stock.
But Rothschild used the money for his own purposes. With Napoleon on the loose, the
opportunities for highly profitable wartime investments were nearly limitless.
 William returned to Wllhelmshohe, sometime prior to the Battle of Waterloo in 1815. He
summoned the Rothschilds and demanded his money back.
 The Rothschilds returned William's money, with the 8% interest the British Consols would have
paid him had the investment actually been made. But the Rothschilds kept all the vast wartime
profits they had made using Wilhelm' s money-shady practice in any century.
 Partly by such practices, Nathan Rothschild was able to later brag that in the seventeen years he
had been in England, he had increased his original £20,000 stake given to him by his father by
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2,500 times (=£50,000,000), a truly vast sum at that time, comparable to billions of current U.S.
dollars in purchasing power.
 As early as 1817, the director ofthe Prussian Treasury, on a visit to London, wrote that Nathan
Rothschild had:
 "... incredible influence upon all financial ffairs here in London. It is widely stated ... that he
entirely regulates the rate of exchange in the City. His pwer as a banker is enormous. "
 Austrian Prince Metternich's secretary wrote of the Rothschilds as early as 1818 that:
 "...they are the richest people in Europe".
 By cooperating within the family, using fractional reserve banking techniques, the Rothschilds'
banks soon grew unbelievably wealthy. By the mid-1800s, they dominated all European banking,
and were certainly the
 {p. 18} wealthiest family in the world. A large part of the profligate nobility of Europe became
deeply indebted to them.
 In virtue of their presence in five nations as bankers, they were effectively autonomous - an entity
independent from the nations in which they operated. If one nation's policies were displeasing to
them or their interests, they could simply do no further lending there, or lend to those nations or
groups opposed to such policies. Only they knew where their gold and other reserves were located,
thus shielding them from government seizure, penalty, pressure or taxation, as well as effectively
making any national investiation or audit meaningless. Only they knew the extent (or paucity) of
their fractional reserves, scattered in five nations - a tremendous advantage over purely national
banks engaging in fractional reserve banking too.
 Rothschild International
 It was precisely their international character that gave them unique advantages over national banks
and governments, and that was precisely what rulers and national parliaments should have
prohibited, but did not. This remains true of international or multi-national banks to this very day,
and is the driving force of globalization - the push for one-world government.
 The Rothschilds provided huge loans to establish monopolies in various industries, thereby
guaranteeing the borrowers' ability to repay the loans by raising prices without fear of price
competition, while increasing the Rothschild's economic and political power.
 They financed Cecil Rhodes, ranking it possible for him to establish a monopoly over the gold
fields of South Africa and the De beers over diamonds. In America, they financed the
monopolization of railroads.
 The National City Bank of Cleveland, which was identified in Congressional hearings as one of
three Rothschild banks in the United States, provided John D. Rockefeller with the money to begin
his monopolization of the oil refinery business, resulting in Standard Oil.
 Jacob Schiff, who had been born in the Rothschild "Green Shield" house in Frankfort and who was
then the principal Rothschild agent in the U.S., advised Rockefeller and developed the infamous
rebate deal Rockefeller secretly demanded from railroads shipping competitors' oil.
 These same railroads were already monopolized by Rothschild control through agents and allies
J.P. Morgan and Kuhn, Loeb & Company (Schiff was on the Board) which together controlled
95% of all U.S. railroad mileage.
 By 1850, James Rothschild, the heir of the French branch of the family, was said to be worth 600
million French francs - 150 million more than all the other bankers in France put together.
 James had been established in Paris in 1812 wih a capital of $200,000 by Mayer Amschel. At the
time of his death in 1868, 56 years later, his annual income was $40,000,000. No forune in
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America at that time equaled even one year's income of James. Referring to James Rothschild, the
poet Heinrich Heine said:
 "Money is the god of our times, and Rothschild is his prophet."
 {p. 19} James built his fabulous mansion, called Femeres, 19 miles northeast of Paris. Wilhelm I,
on first seeing it exclainned, "Kings couldn't afford this. It could only belong to a Rothschild."
Another 19 century French commentator put it this way;
 "There is but one power in Europe and that is Rothschild."
 There is no evidence that their predominant standing in European or world finance has changed, to
the contrary, as their wealth has increased they have simply increased their "passion for
anonymity". Their vast holdings rarely bear their name.
 Author Frederic Morton wrote of them that they had "conquered the world more thoroughly, more
cunningly, and much more lastingly than all the Caesars before..."
 Now let's take a look at the results the Bank of England produced on the British economy, and
how that later was the root cause of the American Revolution.
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Title 8-16 by Kashif Ahmed Khan

8. THE AMERICAN REVOLUTION
All this monetary deceit and economical frustration is the main cause behind
American Revolution.
British (mid 1700 Era):
During the mid-1700s, the British Empire arising to power has waged 4 wars since
the creation of its privately-owned central bank, the Bank of England. The war toll
was too high and British parliament borrowed heavily from the bank rather than
print its own money, resulting in over debt. Thus to cover the interest payment for
this government debt, a program was launch to generated more revenue from its
American Colonies. Although it has not physically landed in America, but still its
harsh influences were in motion from 1964.
American Colonies (1690 – 1700 Eras):
From 1690 the American Colonies started to print there own paper money and other
colonies follow pursuit but still during the mid 1700 most of the America was still
very poor. Therefore the lack of required metal for currency coins made it the
necessity for people to make their own money and do trades, which later put the
foundation for colonial money.
Cause of American Revolution (1720 – 1742 Eras):
In 1720 an attempt was made to restrict the use of colonial money through colony
governors which proved unsuccessful. Therefore in 1742, the British Resumption Act
made it official that all taxes and debts be paid in gold, which created frustration,
poverty and depression in colonies.
Benjamin Franklin Support (1757 – 1760 Eras):
As Benjamin Franklin supported that colonies should print their own money,
therefore in 1757, as he was sent to London to fight for colonial paper money, he
ended up staying for the next 18 years - nearly until the start of the American
Revolution. During this period, more American colonies began to issue their own
money (Colonial Scrip), regardless of parliament order. Since Colonial Scrip was for
public interest (not backed by Gold or Silver), it became the main medium of
currency between American colonies.
After witnessing prosperity of the colonies, on inquiry from Benjamin, to which he
replied,
"That is simple. In the colonies we issue our own money. It is called
Colonial Scrip. We issue it in proper proportion to the demands of trade
and industry to make the products pass easily from the producers to the
consumers...In this manner, creating for ourselves our own paper money,
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we control its purchasing power, and we have no interest to pay to no

one."
This simple secret of money was the cause of worry for Bank of England’s officials.
Currency Act of 1764:
As a result, Parliament hastily passed the Currency Act of 1764 which prohibited
colonies from issuing their own money and ordered them to pay all future taxes in
gold or silver coins, thus forcing them on a gold and silver standard. This initiated
the first "Bank War" in America, which ended in defeat for the Money Changers and
concluded by the subsequent peace Treaty of Paris 1783.
The Currency Act of 1764 bought unemployment on a large scale.
The Stamp Act (1774 – 1775 Eras):
Another attempt to demolish colonial scrip occurred in 1774, when Parliament
passed the Stamp Act which required that a stamp be placed on ever instrument
of commerce indicating payment of tax in gold. But in response more colonial
currency was issued by the colonies. Theses actions were took as an act of defiance
by the Parliament and Bank of England. Thus during April 1775, the colonies have
lost in taxation all there gold and silver, making them print there own money to
finance the war.
American Revolution (1781 – 1785 Eras):
At the start of the Revolution, the U.S. (colonial) money supply stood at $12 million
and at the end of the war, it was nearly $500 million due to result of massive British
counterfeiting thus resulting in making the currency virtually worthless.
Since before the war the colonial scrip was only issued to facilitate trade with nearly
no counterfeiting, therefore it brought prosperity. While after the war, due to
deliberate counterfeiting of money by the British, it became worthless, thus fulfilling
the Parliament and Bank of England’s agenda of undermining the Colonial Scrip.
9. THE BANK OF NORTH AMERICA

Bank’s Initiation:
At the end of Revolution, Continental Congress needed more money for economical
operations. Therefore in this regard they permitted their Financial Superintendent
Robert Morris to open a privately owned central bank which was named “The Bank
of North America”. It was closely modeled after functionality of Bank of England i.e
Fractional Reserve Banking System.
Bank’s Functionality:
Since it catered Fractional Reserve Banking System, the bank was furthermore
given the monopoly to issue bank notes which were acceptable in payments of
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taxes. Since the bank’s operations were kept hidden from general public and also
little people knew about this system, therefore the bank carried on its functionality.
When the Bank required investment of $400,000 for capital, the input was less,
therefore Morris using his influence to obtain gold deposit loaned to America by
France. Later he loaned this money to himself and his friends to reinvest in bank
shares.
The Downfall (1785 Era):
During this scenario, the second American Bank War was on. The American
currency continued to decline, therefore after four years, in 1785, the Bank's
charter was not renewed, which effectively ended the threat of the Bank's power.
And thus the second American Bank War quickly ended in defeat for the Money
Changers.
But the men behind the Bank of North America did not give up and 6 years later
they created a new privately-owned bank named “The First Bank of United States”.
10. THE CONSTITUTIONAL CONVENTION

Philadelphia (1787 Era):
In 1787, the constitutional convention occurred and now the colonial leader knew
the risks fractional reserve banking, they wanted nothing of it. As Jefferson later put
it:
"If the American people ever allow private banks to control the issue of
their currency, first by inflation, then by deflation, the banks and the
corporations which grow up around them will deprive the people of all
property until their children wake up homeless on the continent their
fathers conquered."
During the debate, the banker’s tried to lay down the final draft for the constitution
but the leaders knew the true intentions of bankers. Therefore the money changers
lost the leverage of debate.
But this didn’t stop the bankers from pursuing their goals. They tried to convince
the majority of constitutional convention to not to give Power to Congress to issue
paper money. Since most delegates have forgotten the benefits reaped from this
system, the bankers have not and they didn’t wanted it to return in any way.
Thus taking benefit from the silence at the constitution on issuance of paper money,
it become finalized that the federal and state governments were prohibited from
paper money creation, whereas private banks were not.
Aftermath:
But in the end, only the states were prohibited from issuing paper money, not the
federal government, and neither private banks nor even municipalities were
prohibited from issuing paper money (as happened during the Great Depression).
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Another point was to regulate the value of money with equality in quantity which
was totally ignored by the constitution and thus leaving Fed and other banks to
issue money supply.
11. FIRST BANK OF THE UNITED STATES

Bank Initiation:
In 1790, the banker Alexander Hamilton proposed to the congress for a new
privately owned central bank named “First Bank of the United State” and despite
opposition from the Jefferson and Madison, Hamilton succeeded in its creation by
obtaining its 20 year charter from congress. Also in process to initiate the 3rd
American Bank War
Bank Functionality:
The first Bank of the United States was situated in Philadelphia and was given
authority to print currency and give loans as per fractional reserve working. With its
80% stock attained by the private investors and the remaining 20% by the
government. Following the line of earlier central banks the stockholders never paid
full of their shares and while government put up its part of cash, the banker’s
working on the fractional reserve lending process, made the remaining capital
necessary for the operations from the charter investors.
Aftermath:
Since its working, the Bank was credited for bringing inflation under control and to
provide equilibrium to the banking system but in actual when U.S government
borrowed money from the bank, in that time the prices inflated by 72%.
Although intellectual individuals watched the economical state with frustration and
sadness, still they can’t do anything due to the constitutional rights. This was a
simple and perfect fraud in a way that construct a new private central bank, obtain
money from the government to get this private going and the bankers themselves
loan each other this money to obtain the remaining stocks in the bank.
12. NAPOLEON'S RISE TO POWER

Bank of France (1800 Era):
During 1800, in Paris, the Bank of France was organized on the same principles of
the Bank of England. But on the other hand Napoleon was cleverer and far sighted
and understood the negativity of debt system. He was in opposition but didn’t have
any solutions to wander the effects of this system.
3rd President of United State (1800 – 1806 Eras):
Luck gave Napoleon a good news, in the same 1800, Thomas Jefferson become the
3rd President of the United States and by 1803, Jefferson and Napoleon had struck a
deal in exchange of $3,000,000 in gold to Napoleon for the territory of Louisiana.
Therefore with the money, Napoleon quickly raised an army and set off across
Europe, conquering everything in his path. But England and the Bank of England
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quickly rose to oppose him and they not only financed every nation in napoleon’s
path but also gained enormous profits of war. In this way many countries became
indebted to the Bank of England.
Nathan Rothschild (1808 Era):
In 1808, as Napoleon’s main armies were in Russia, Nathan Rothschild (the head of
London office of Rothschild Family) personally made a plan to smuggle a shipment
of gold through France to finance an attack by the Duke of Wellington from Spain
and after achieving this, profited from it very much.
Finally Wellington's attacks and other defeats, forced Napoleon to give up and he
exiled to a tiny island of Elba, temporarily. While on the other side, America was
trying to break free of its central bank as well.
13. DEATH OF THE FIRST BANK/THE WAR OF 1812

Charter Renewal of 1st Bank of United States (1811 Era):
In 1811, the bill to congress for the renewal of 1st bank of United State was taken
very angrily due to the perception finally made on the public of America of its
fraudulent nature. When prospects didn’t look good for the bank, pressure was put
on the government to renew the charter of the bank.
But all in all, the renewal bill was finally defeated by a single vote in the House,
making it deadlock in Senate and further remaining work to end the bank’s regime
was done by James Madison (then 4rth President of America) and George Clinton
(Vice President).
3rd American Bank War & The War of 1812:
Thus, the third American Bank War, lasting 20 years, ended in defeat for the Money
Changers. In 1812, England attacked the U.S but since the British was also still busy
fighting Napoleon, the war of 1812 ended in a draw in 1814.
Although temporarily out, the threat of “Fractional Reserve Banking” was far from
over.
14. WATERLOO
Napoleon’s Return (1815 Era):
In 1815, a year after the end of the War of 1812 in America, Napoleon escaping his
exile returned to Paris. French troops which were sent out to capture him were
overtaken by his charisma and they rallied around their old leader and hailed him as
their Emperor once again. Napoleon returned to Paris a hero. King Louis fled into
exile and Napoleon again ascended to the French throne - this time without a shot
being fired.
War of Waterloo (1815 Era):
In March of 1815 Napoleon made an army to confront Britain's Duke of Wellington
at Waterloo battle field in what today is Belgium. But in less than 90 days the
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napoleon army was defeated and Napoleon suffered his final defeat on the account
of thousands of French and English men lives in June of 1815.
Now since in that era it was common that a single bank can finance both sides at
war and in accordance that victor will honor the losers debt, thus in this way only
the Bankers cannot lose and gain enormous profits from debts.
Nathan Rothschild Scheme:
Following the Waterloo scenario, Nathan Rothschild looking at the opportunity to
seize control over the British stock and bond market. For that Nathan placed an
agent, named Rothworth, on the north side of the battlefield - closer to the English
Channel.
Once the battle had been decided, Rothworth took off for the Channel. He delivered
the news to Nathan Rothschild a full 24 hours before Wellington's own courier.
Nathan hurried to the Stock Market and took up his usual position in front of an
ancient pillar.
Due to Nathan’s legendary communication network, every person was looking at
him. As if Wellington had been defeated and Napoleon was loose on the Continent
again, Britain's financial situation would become grave indeed. Nathan made
himself looked saddened and gloomy. Then suddenly, he began selling. His action
was perceived as if the Napoleon has won therefore other investors started selling
too, resulting in the market plummet and prices dropped. Thus in this time Nathan
Rothschild and his financial allies started secretly buying through agents.
Rothschild’s Financial Value:
Rothschild intermarriages with the other banking families like Montifiores, Cohens
and Goldsmiths, enhanced the Rothschild’s' financial control. On the same pace by
the mid 1800’s the Rothschild were the richest family in the world with dominance
over the new government bond markets and branched into other banks and
industrial concerns worldwide. In fact, the rest of the 19th century was known as
the "Age of Rothschild."
Although having so much wealth and many businesses, the Rothschild family had
kept a veil over its family from the general public. But also the Rothschild have
carefully kept on their businesses to acquire more wealth and power in control of
banks, debt-captive corporations, the media, politicians and nations, all through
surrogates, agents, nominees and interlocking directorates, obscuring their role.
15. SECOND BANK OF THE U.S.

Bill permitting for another privately owned bank (1816 Era):
During 1816, in Washington, after one year of Waterloo and Rothschilds' alleged
takeover of the Bank of England, the American Congress passed a bill permitting yet
another privately-owned central bank - called the Second Bank of the United States.
The new Bank's charter was a copy of the previous Bank's.
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Bank’s Functionality:
The bank functioned same as the earlier private central banks. While taking over
bank of England earlier, they also took over 2nd American Bank of the United States
and with Napoleon out of the way; they also begin to dominate the Bank of France.
16. ANDREW JACKSON

The Genesis of a Hero:
Again due to the deceiving nature of the 2nd Bank o the U.S, people became
frustrated and thus from Tennessee a senator “Andrew Jackson” was chosen to run
for the president and counter the threat of 2nd Bank of U.S. But in process, the bank
has leaned a lot from the passage of time. So before the reelection of Andrew, it
presented the renewal charter before 4 years to ensure its renewal, which was
vetoed by Andrew Jackson.
Andrew was a responsible American and dictated the disadvantages of the private-
central banking system.
As said by Jackson:
"If Congress has the right to issue paper money, it was given to them to
be used by themselves, and not to be delegated to individuals or
corporations.”
Later in July 1832, Jackson took his argument directly to the people with campaign
slogan,
"Bank and no Jackson, or no Bank and Jackson!"
While in opposition, The National Republican Party ran Senator Henry Clay against
Jackson and despite that the bankers put a lot of money in campaign of Clay,
Jackson was re-elected by a majority in November of 1832.
New Commandments:
After being elected, the first thing that Andrew Jackson did was to ask his Secretary
of Treasury, Louis McLane, to start removing the government's deposits from the
Second Bank of the U.S. and to start placing them in state banks. McLane refused to
do so. Jackson fired him and appointed William J. Duane as the new Secretary of the
Treasury. Duane also refused to comply with the President's requests, and so
Jackson fired him as well, and then appointed Roger B. Taney to the office. Taney
did as told and withdrew government funds from the bank, starting on October 1,
1833.
Harsh Reactions:
Biddle, the head of the bank, threatened to cause a national economic depression if
the Bank were not re-chartered and declared war. Biddle admitted that the bank
was going to make money scarce in order to force Congress to restore the Bank’s
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charter. By this the Bank contracted the money supply by calling in old loans and
refusing to extend new ones.
This cause an economical crisis with unemployment and the blame intentionally was
put upon Andrew Jackson’s fund withdrawal actions. Following this scenario a
meeting was called by the name “Panic Session” to discuss the current scenario.
Banker’s tried to over thrown the president through Congress and to prolong the
charter of the bank. But at the right moment support of the Governor of
Pennsylvania, shifted the tides for well devised plan of Banker’s
Glory Days (1834 – 1835 Eras):
In April 1834, the House of Representatives casted votes which resulted in the clear
indication of not re-chartering the Bank. Also a special committee was forged to
investigate the Bank, but whose internal examination was refused by the Banks
officials and also made mockery of the judicial system by not paying serious
attention to the committee’s testifying.
Finally in January 1835, Jackson paid off the final installment on the national debt
and was President ever to pay off the national debt.
Assassination Attempts (1835 Era):
On January 30, 1835, an assassin “Richard Lawrence” tried to shoot and
assassinate President Jackson. But due to luck his both pistols misfired. After some
times from the initial arrest Lawrence was released on the reason of insanity.
Bank’s Death:
After the Bank’s charter time ran out, the Second Bank of the United States ceased
functioning as the nation's central bank. Biddle was later arrested and charged with
fraud. He was judged but he died shortly and the finally the 4rth American Bank war
ended, thus the 4rth defeat for Money Changers
Even though Andrew Jackson retired but he had managed to shut the Bank’s
operation so effectively that it took the banker’s a whole century to reach again to
their point of scheme as left before.
In regard of Banks, Jackson also warned future generations of America;
"The bold effort the present bank had made to control the government...
the distress it had wantonly produced ... are but premonitions of the fate
that awaits the American people should they be deluded into a
perpetuation of this institution or the establishment of another like it."
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Title 17-19 by Razia Pukhraj
Abraham Lincoln (1861 - 1865)2

Abraham Lincoln (February 12, 1809 – April 15, 1865) served as the 16th President
of the United States from March 1861 until his assassination in April 1865. He
successfully led his country through its greatest internal crisis, the American Civil
War, preserving the Union and ending slavery. Before his election in 1860 as the
first Republican president, Lincoln had been a country lawyer, an Illinois state
legislator, a member of the United States House of Representatives, and twice an
unsuccessful candidate for election to the U.S. Senate. As an outspoken opponent of
the expansion of slavery in the United States,[1][2] Lincoln won the Republican
Party nomination in 1860 and was elected president
later that year. His tenure in office was occupied
primarily with the defeat of the secessionist
Confederate States of America in the American Civil
War. He introduced measures that resulted in the
abolition of slavery, issuing his Emancipation
Proclamation in 1863 and promoting the passage of
the Thirteenth Amendment to the Constitution. Six
days after the large-scale surrender of Confederate
forces under General Robert E. Lee, Lincoln became
the first American president to be assassinated
“I have no purpose, directly or indirectly, to

interfere with the institution of slavery in the states
where it now exists. i believe I have no lawful right
to do so, and I have no inclination to do
so.”----------------- Abraham Lincoln3
“My paramount objective is to save or destroy slavery. If I could save the

Union without freeing and slave, I would do it.”
----Abraham Lincoln
Abraham Lincoln's position on freeing the slaves is believed to be one of the central
issues in American history. Initially, Lincoln expected to bring about the eventual
2
http://en.wikipedia.org/wiki/Abraham_Lincoln
3
http://en.wikipedia.org/wiki/Abraham_Lincoln_on_slavery
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extinction of slavery by stopping its further expansion into any U.S. territory, and by
offering compensated emancipation (an offer accepted only by Washington, D.C).
Lincoln stood by the Republican Party platform in 1860, which stated that slavery
should not be allowed to expand into any more territories. Most Americans agreed
that if all future states admitted to the Union were to be free states, that slavery
would eventually be abolished.
During the American Civil War, Lincoln used the war powers of the presidency to
issue the Emancipation Proclamation, which declared "all persons held as slaves
within any State or designated part of a State, the people whereof shall then be in
rebellion against the United States, shall be then, thenceforward, and forever free"
but exempted border states and those areas of slave states already under Union
control. As a practical matter, at first the Proclamation could only be enforced to
free those slaves that had already escaped to the Union side. However, millions
more were freed as more areas of the South came under Union control.
19th Century National Politics

All the Northern states had passed slavery emancipation acts between 1780 and
1804, though, as Alexis de Toqueville noted in Democracy in America (1835), the
prohibition did not always mean that all the slaves were freed. The economic value
of plantation slavery had become magnified after the 1793 invention of the cotton
gin by Eli Whitney, increasing fiftyfold the quantity of cotton that could be
processed in a day and greatly increasing the demand for slave labor in the South.
[3] Just as demand for slaves was increasing, the supply was restricted. The United
States Constitution, adopted in 1787, prevented Congress from banning the
importation of slaves until 1808. On January 1, 1808, Congress banned further
imports. Though there were certainly violations of this law, slavery in America
became, more or less, self-sustaining.
With the Louisiana Purchase in 1803, the size of the United States had roughly
doubled, opening up new lands which could become states. After the War of 1812,
concern was increasing to balance the number of slave states and free states.
Because of larger population growth in the North, the free states came to hold the
majority of seats in the House of Representatives. To keep a balance in the Senate,
there was a strong movement to admit new states in pairs, one slave state for every
free state. The Compromise of 1820 admittted Maine as a free state and Missouri as
a slave state, and also banned slavery above the 36° 30' parallel except in the new
state of Missouri. With the application by Texas to become a state of the Union, and
the ceding of lands to the U.S. after the Mexican American War, new territories were
added in which, by the Missouri Compromise, slavery could be legal. Efforts were
also made to acquire Cuba and to annex Nicaragua, both to be slave states.
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Members of Congress enforced an informal gag rule which prevented debates on

slavery issues. Meanwhile representatives from slave states were able to pass
stronger federal laws such as the Fugitive Slave Acts, which obliged Northerners to
assist in the return of blacks who might have escaped from the South. Northern
opposition to slavery in the South grew as people objected to being made agents of
slavery.
Following the Kansas-Nebraska Act of 1854, those opposed to the expansion of

slavery united to form the Republican Party. The party was determined to stop the
expansion of slavery into the territories, which most people agreed would put it on
course for eventual extinction. The party opposed what it called the Slave Power--
that is the group of Southern slaveowners they thought had control of the
government and that some thought was attempting to expand slavery throughout
the United States and the rest of the Americas.
Otto von Bismarck

Otto von Bismarck, Germany's "Iron Chancellor", is
one of the most significant political figures of the 19th
century. He is considered the founder of the German
Empire. He changed Germany from a weak, loose
confederation of conflicting kingdoms and
principalities to a united Empire that dominated
Europe by the end of the 19th century. He created
this new German Empire under the Prussian
monarchy and embed it with Prussian anti-democratic
military traditions. While he began as a
representative of Prussian Junker interests, he sought
to gain the support of Germany's rising industrial class. His primary goal was to
unify German and once that was achieved he became a master of balancing
alliances to keep the European peace, primarily by isolating France. His skill as a
diplomat was unrivaled in Europe. Bismarck was the first important European leader
to champion a system of social security for workers. Kaiser Wilhelm who fired
Bismarck was more interested in imperial expansion and less interested in the
Bismarckian alliance system. He believed that the powerful Germany army and a
new German navy could be used through bombastic threats to achieve German
goals.4
“.. I fear that foreign bankers with their craftiness and torturous tricks will entirely
control the exuberant riches of America, and use it systematically to corrupt
4
http://histclo.com/Bio/b/bio-bis.html
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modern civilization. They will not hesitate to plunge the whole of Christendom into
wars and chaos in order that the earth should become their inheritance.”5
(Referring to the assassination of Lincoln by John Wilker Booth, a Rothschild agent)
“The division of the United States into federations of equal force was decided long
before the civil war by the high financial power of Europe. These bankers were
afraid that the United States, if they remained as one block, and as one nation,
would attain economic and financial independence, which would upset their
financial domination over the world.”
----Otto Von BismarK
Bismarck explained that the Rothschilds who controlled Europe were afraid the
United States would become independent of them if it remained one nation: "They
foresaw tremendous booty if they could substitute two feeble democracies indebted
to the Jewish financiers to the vigorous republic confident and self providing.
Therefore they started their emissaries in order to exploit the question of slavery
and thus to dig an abyss between the two parts of the republic."6
When financing the Civil War became difficult, Lincoln had the choice of following
the advice of his official advisors (dominated by banking interests), and borrowing
from the financial houses at high interest rates, or printing interest-free government
money. He chose the latter course, apparently at Taylor's suggestion. If he had
even the slightest notion of making the greenback issue permanent monetary policy
for the nation, as some records seem to indicate, powerful interests (the same ones
that would be responsible for the assassination conspiracy cover-up), had cause for
wishing him out of the way. It certainly constitutes ample motive, when one reflects
on how seriously money is taken. Printing interest-free money, rather than
borrowing it at interest from banks, was taboo, even in Lincoln's day. Lincoln,
however, did it anyway much to his credit and at great savings to the nation. After
the war had been won, having saved the Union and freed the slaves, the president
was popular enough to have been capable of forging independent policy. Lincoln
had become a very dangerous man. He was politically unassailable except through
assassination.
To confuse the issue, a David Taylor enters the picture. This account, attributed to
Don Piatt, "a noted journalist" of Washington (in an account of the origins of the
greenback in a North American Review article), refers to David Taylor of Ohio:
5
http://www.vnnforum.com/showthread.php?t=98691
6
http://groups.google.com/group/total_truth_sciences/browse_thread/thread/9b441b
1b80be36f4
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"Amasa Walker, a distinguished financier of New England, suggested that notes

directly from the Government to the people, as currency, should bear interest. This
for the purpose, not only of making the notes popular, but for the purpose of
preventing inflation, by inducing people to hoard the notes as an investment when
the demands of trade would fail to call them into circulation as a currency.
"This idea struck David Taylor, of Ohio, with such force that he sought Mr. Lincoln
and urged him to put the project into immediate execution. The President listened
patiently, and at the end said, 'That is a good idea Taylor, but you must go to
Chase. He is running that end of the machine, and has time to consider your
proposition.'
"Taylor sought the Secretary of the Treasury, and laid before him Amasa
Walker's plan. Secretary Chase heard him through in a cold, unpleasant manner,
and then said: 'That is all very well, Mr. Taylor; but there is one little obstacle in the
way that makes the plan impracticable, and that is the Constitution.'
"Saying this, he turned to his desk, as if dismissing both Mr. Taylor and his
proposition at the same moment.
"The poor enthusiast felt rebuked and humiliated. He returned to the President,
however, and reported his defeat. Mr. Lincoln looked at the would-be financier with
the expression at times so peculiar to his homely face, that left one in doubt
whether he was jesting or in earnest. 'Taylor!' he exclaimed, 'go back to Chase and
tell him not to bother himself about the Constitution. Say that I have that sacred
instrument here at the White House, and I am guarding it with great care.'
"Taylor demurred to this, on the ground that Secretary Chase showed by his
manner that he knew all about it, and didn't wish to be bored by any suggestion.
"'We'll see about that,' said the President, and taking a card from the table, he
wrote upon it:
"'The Secretary of the Treasury will please consider

Mr. Taylor's proposition. We must have money, and I
think this is a good way to get it.
"'A. Lincoln.'"
Colonel Dick Taylor

‘My dear Colonel Dick:
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I have long determined to make public the origin of the greenback and tell the world
that it was Dick Taylor’s creation. You had always been friendly to me, and when
troublous times fell on us, and my shoulders, though broad and willing, were weak,
and myself surrounded by such circumstances and such people that I knew not
whom to trust, then I said in my extremity, ‘I will send for Colonel Taylor — he will
know what to do.' I think it was in January 1862, on or about the 16th, that I did so.
Said you: ‘Why, issue treasury notes bearing no interest, printed on the best
banking paper. Issue enough to pay off the army expenses and declare it legal
tender.' Chase thought it a hazardous thing, but we finally accomplished it, and
gave the people of this Republic the greatest blessing they ever had — their own
paper to pay their debts. It is due to you, the father of the present greenback, that
the people should know it and I take great pleasure in making it known. How many
times have I laughed at you telling me, plainly, that I was too lazy to be anything
but a lawyer.
Yours Truly.
A. Lincoln7
THE GREENBACK ISSUE AND COL. TAYLOR
We still call American dollars (Federal Reserve Notes ), "greenbacks," but only
because they closely resemble greenbacks in appearance. There are very
significant differences between FRN's and greenbacks. The Lincoln era greenbacks,
which were Treasury Notes, were our first official circulating national paper
currency. (Revolutionary era, so-called "Continentals" are not counted since they
were issued before the present United States of America existed.) Later gold and
silver certificates, National Bank Currency, and Federal Reserve Notes, were
7
http://www.heritech.com/pridger/lincoln/lin-ken.htm
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patterned closely after greenbacks in appearance, and all five types of currency
have circulated concurrently and interchangeably as "legal tender."
Everybody knows about Lincoln's greenbacks, but few people know very much
about them because history has given them rather short-shift. Though several
books have been written on the greenback and our Legal Tender laws, Lincoln's
apparent "original intent" (aside from the necessities of financing the war), have
been totally ignored. Greenbacks have become a mere foot-note of America's
monetary history. Ditto for the rationale and mind behind them. Greenbacks are
explained away simply as a temporary emergency war time measure, and Taylor
has almost disappeared from the record. It is quite possible he bowed out of the
public eye with some prompting, and perhaps even stern warnings -- like, "Or your
name will be Mudd!"
The Lincoln greenback issue not only offended the eastern bankers in this country,
but their superiors in England. The European money power (essentially, the Bank of
England), feared the greenback. In fact, it almost threw the weight of the British
Empire behind the Southern cause. The need for access to cotton was not the only
interest England had in the Confederacy.
" 'The great debt that (our friends the) capitalists (of Europe) will see to it is made
out of the war must be used to control the volume of money... It will not do to allow
the greenback, as it is called, to circulate... for we cannot control them' "
The Two Step Plan to National Economic Reform and Recovery
1. Directs the Treasury Department to issue U.S. Notes (exactly like Lincoln’s
Greenbacks) to pay off the National debt.
2. Increases the reserve ratio private banks are required to maintain from 10%
to 100%, thereby terminating their ability to create money, while
simultaneously absorbing the funds created to retire the national debt.
The Government should create, issue, and circulate all the currency and credits
needed to satisfy the spending power of the Government and the buying power of
consumers. The privilege of creating and issuing money is not only the supreme
prerogative of Government, but it is the Government's greatest creative
opportunity. By the adoption of these principles….the taxpayers will be saved
immense sum of interest. Money will cease to be master and become the servant of
humanity ---Abraham Lincoln
By resorting to the issue of "greenback" currency, Lincoln launched "a national

currency policy" which provided that the financing of government and progress,
with the issue of "honest money dollars" by the government would take the place of
the policy of borrowing "dishonest credit dollars" issued by the private money
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system. He believed that the spending power of government and the buying power
of the consumers could and should be created and issued by the State free from
"interest, discounts and other charges" imposed as the profit of the private money
system. Lincoln's monetary programme offered the means of paying the debts and
current expenses of government without profit to the bankers and without disaster
to the taxpayers.
Quite naturally, the bankers opposed Lincoln's "national currency program" for
under it he proposed to take away from the bankers the privilege of issuing an
effective substitute for money. Instead of borrowing from the private money
system, Lincoln proposed to use national currency for all government expenses and
to pay off outstanding bonds with the same medium of exchange. Instead of
government borrowing a fiction of money from the bankers Lincoln proposed to
compel the bankers to borrow real money from the government.
The issue between Lincoln and the financiers was clear cut and well defined. It
involved the great question that must now be settled. That issue is: Shall the
medium of exchange, consisting of money, token currency, inconvertible bank notes
and inconvertible bank credit transferable by cheque, be created and issued by men
responsible to the government and subject to the restrictions of stewardship or shall
it be created and issued by men who are answerable to neither nation nor people
and who have no responsibility other than that of serving their own and the
interests of the private money system? In short, shall government be subordinate to
Money Power, with the money changers ruling Democracy? Or shall Democracy rule
the money changers? Lincoln knew that it was upon the determination of this great
issue in favour of Democracy that the progress, prosperity and peace of humanity
depended.
In accordance with this sound conclusion, being on the side of humanity, he

therefore proposed "a managed currency system" that would fully establish the
sovereignty of Democratic Government.
LINCOLN'S MONETARY POLICY
By the adoption of these principles, the long-felt want for a uniform medium will be
satisfied. The taxpayers will be saved immense sums of interest, discounts, and
exchanges. The financing of all public enterprise, the maintenance of stable
government and ordered progress, and the conduct of the Treasury will become
matters of practical administration. The people can and will be furnished with a
currency as safe as their own Government. Money will cease to be master and
become the servant of humanity. Democracy will rise superior to the money power.8
8
http://www.heritech.com/pridger/lincoln/lin-ken.htm
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They wasted no time in expressing their view in the London Times. Oddly enough,
while the article seems to have been designed to discourage this creative financial
policy, in its put down we're clearly able to see the policies goodness.
If this mischievious financial policy which has its orgin in North America, shall
become endurated down to a fixture, then that Government will furnish its own
money without cost.It will pay off debt and be without debt. It will have all the
money necessary to carry on its commerce. It will become prosperous without
precedent in the history of the world. The brains, and wealth of all countries will go
to North America. That country must be destroyed or it will destroy every
monarchy on the globe-----------Times Of London
Hazard Circular - London Times 1865 From this extract its plan to see that it is the
advantage provided by the adopting of this policy which poses a threat to those not
using it. 1863, nearly there, Lincoln needed just a bit more money to win the war,
and seeing him in this vulnerable state, and knowing that the president could not
get the congressional authority to issue more greenbacks, the money changers
proposed the passing of the National Bank Act. The act went through. From this
point on the entire US money supply would be created out of debt by bankers
buying US government bonds and issuing them from reserves for bank notes. The
greenbacks continued to be in circulation until 1994, their numbers were not
increased but in fact decreased.
"In numerous years following the war, the Federal Government ran a heavy surplus.
It could not (however) pay off its debt, retire its securities, because to do so meant
there would be no bonds to back the national bank notes. To pay off the debt was to
destroy the money supply."-------------------------- John Kenneth Galbrath
John Kenneth Galbrath The American economy has been based on government debt
since 1864 and it is locked into this system. Talk of paying off the debt without first
reforming the banking system is just talk and a complete impossibility. That same
year Lincoln had a pleasant surprise. Turns out the Tsar of Russia, Alexander II, was
well aware of the money changers scam. The Tsar was refusing to allow them to set
up a central bank in Russia. If Lincoln could limit the power of the money changers
and win the war, the bankers would not be able to split America and hand it back to
Britain and France as planned. The Tsar knew that this handing back would come at
a cost which would eventually need to be paid back by attacking Russia, it being
clearly in the money changers sights. The Tsar declared that if France or Britain
gave help to the South, Russia would consider this an act of war. Britain and France
would instead wait in vain to have the wealth of the colonies returned to them, and
while they waited Lincoln won the civil war. With an election coming up the next
year, Lincoln himself would wait for renewed public support before reversing the
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National Bank Act he had been pressured into

approving during the war. Lincoln's opposition to
the central banks financial control and a
proposed return to the gold standard is well
documented. He would certainly have killed off
the national banks monopoly had he not been
killed himself only 41 days after being re-
elected. The money changers were pressing for
a gold standard because gold was scarce and
easier to have a monopoly over. Much of this
was already waiting in their hands and each
gold merchant was well aware that what they
really had could be easily made to seem like
much much more. Silver would only widen the
field and lower the share so they pressed for...
Salmon Portland Chase

(13 January 1808 - 7 May 1873)9
“My agency in promoting the passage of the National Banking Act was the
greatest financial mistake in my life. It has built up a monopoly which
affects every interest in the country.”
---Salmon P.Chase
As Secretary of the Treasury in President Abraham Lincoln's cabinet in 1861-1864,

during the first three years of the Civil War, he rendered services of the greatest
value. That period of crisis witnessed two great changes in American financial
policy, the establishment of a national banking system and the issue of a legal
tender paper currency. The former was Chase's own particular measure. He
suggested the idea, worked out all of the important principles and many of the
details, and induced Congress to accept them. The success of that system alone
warrants his being placed in the first rank of American financiers. It not only secured
an immediate market for government bonds, but it also provided a permanent
uniform national currency, which, though inelastic, is absolutely stable. The issue of
legal tenders, the greatest financial blunder of the war, was made contrary to his
wishes, although he did not, as he perhaps ought to have done, push his opposition
to the point of resigning.10
“The death of Lincoln was a disaster for Christendom. There was no man
in United States great enough to wear his boots…….I fear that foreign
9
Source: Harper's Weekly
10
http://www.nndb.com/people/808/000031715/
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bankers with their craftiness and tortuous tricks will entirely control the
exuberant riches of America, and use it systematically to corrupt modern
civilization. They will not hesitate to plunge the whole of Christendom into
wars and chaos in order that the earth should become their inheritance.”
--- Bismarck
Bismarck said:" The death of Lincoln was resolved upon. Nothing is easier than to
find a fanatic to strike. The Civil War and Control of Money. ) Compare this with
Howard Zinn who although a Leftist, makes no mention of European financiers. His
book, a soap opera of oppression, says the war was a clash of "elites": "The
Northern elite wanted economic expansion.... The slave interests opposed all that."
(189) Again, "The American government had set out to ... retain the enormous
national territory and market and resources."11,12
11
http://groups.google.com/group/total_truth_sciences/browse_thread/thread/9b441b1b80be
36f4
12
http://www.xat.org/xat/usury.html
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Title 20-23 by Abdul Qadir

20. J.P. MORGAN & the CRASH OF 1907/ ROCKEFELLER
Money Changers were in need of a new, private central bank for America, the fifth
private central bank to control and manipulate America's money supply. For this
they required a major final panic for this purpose. The thin rationale was that only a
central bank could prevent widespread bank failures and stabilize the currency. The
controlling and owning feature carefully was avoided.
In 1857 Junius was the recipient of a £800,000 loan from the Bank of England at a
time of financial crisis when many other firms were denied such loans. Junius
Morgan became the Union's financial agent in Britain. One writer noted:
"Morgan's activities in 1895-1896 in selling U.S. gold bonds in Europe
were based on his alliance with the House of Rothschild."
After his father's death, J.P. Morgan took on a British partner, Edward
Grenfell, a long-time director of the Bank of England. Early in this century,
J.P. Morgan took hold in U.S. finance, the press and in politics, i.e. (J.P. Morgan
Company; Bankers Trust Company; First National Bank of New York, Guaranty
Trust), the Rockefellers (National City Bank of New York; Chase National Bank;
Chemical Bank); Kuhn, Loeb & Company (a representative of the Rothschild banks;
National City Bank of New York) and the Warburg's (Manhattan Corp. bank).
John D. Rockefeller and his brother William used their enormous profits from the
Standard Oil monopoly to dominate the National City Bank, merged in 1955 with
Morgan's and Kuhn, Loeb & Company's First National Bank of New York, which
resulted in Citibank (Citicorp). Similarly, John D. bought control of Chase National
Bank, and merged it with Warburg's Manhattan bank, resulting in the Rockefeller-
dominated Chase Manhattan bank, recently merged with the Rockefeller-controlled
Chemical Bank.
The Rockefeller-controlled Chase-Manhattan/Citicorp banks took hold
majority control over the New York Fed (52%), which completely dominates the
Federal Reserve System. The Rockefellers then replaced the Morgans, Schiffs
and Warburgs as the principal Rothschild allies in the U.S. In Europe a
similar consolidation resulted in two main banking dynasties - the
Warburgs and the Rothschilds.
The relationship between the Rothschilds and Rockefellers was initially one of
debtor/creditor, as the Rothschild's provided the seed money for J.D.
Rockefeller to monopolize the U.S. oil refinery business and most oil durum.
As Georgetown historian Professor Carroll Quigley has noted, if it were possible to
detail the asset portfolios of the banking plutocrats one would find the title-deeds of
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practically all the buildings, industries, farms, transport systems and mineral
resources of the world. Accounting for this, Quigley wrote:
"Their secret is that they have annexed from governments,
monarchies, and republics the power to create the world 's money
on debt-terms requiring tribute both in principal and interest."
In 1902: President Theodore Roosevelt used Sherman Anti-Trust Act to try to break
up the Morgan and his friends industrial monopolies. However it wasn't really
broken up at all. It was merely divided into seven corporations, all still
controlled by the Rockefellers,
By 1907, the year after Teddy Roosevelt's re-election, Morgan and his friends were
able to crash the stock market. Thousands of small banks were vastly
overextended.
Morgan stepped into the market with the permission of Congress and manufactured
$200 million worth of this completely reserveless, private money - and bought
things with it, paid for services with it, and sent some of it to his branch banks to
lend out at interest.
The public regained confidence in money in general and quit hoarding their
currency however many small banks failed and banking power was further
consolidated into the hands of a few large banks. By 1908 the arranged panic was
over and Morgan was hailed as a hero by the president of Princeton University, a
naive man by the name of Woodrow Wilson, who naively wrote:
"All this trouble could be averted if we appointed a committee of six or
seven public-spirited men like J.P. Morgan to handle the affairs of our
country."
The creation of the Federal Reserve System was the direct result of the panic of
1907, quote:
"with its alarming epidemic of bank failures: the country was fed up
once and for all with the anarchy of unstable private banking."
Further moves taken by the National Banks to fleece the American public of their
property, and later to claim that the decentralized banking system was basically so
unstable that it had to be further consolidated and control centralized into a central
bank The supremely critical economic issue of private v/s state ownership and
control was carefully skirted, as was the fractional reserve banking fraud causing
the booms and busts.
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21. JEKYLL ISLAND

After the crash, Teddy Roosevelt, in response to the Panic of 1907, signed into law a
bill creating the National Monetary Commission. to study the banking problem and
make recommendations to Congress. The Chairman was a Senator Nelson Aldrich
£rom Rhode Island. Aldrich represented the Newport, Rhode Island homes of
America's richest banking families and was an investment associate of J.P.
Morgan, with extensive bank holdings.
On November 22, 1910, seven of the wealthiest and most powerful men in America
boarded Senator Aldnch's private rail car and in the strictest secrecy journeyed to
Jekyll Island, off the coast of Georgia.
The participants came together to figure out to solve their major problem and to
bring back a privately-owned central bank - but there were other problems that
needed to be addressed as well. First of all, the market share of the big national
banks was shrinking fast.
In the first ten years of the century, the number of U.S. banks had more than
doubled to over 20,000. By 1913, only 29% of all banks were National Banks and
they held only 57% of all deposits.
All the participants knew that these problems could be hammered out into a
workable solution, but perhaps their biggest problem was a public relations problem
- the name of the new central bank. That discussion took place in the Jekyll Island
Club.
The idea to use the National Reserve Bill or the Federal Reserve Bill here was to
give the impression that the purpose of the new central bank was to stop bank runs,
but also to conceal its monopoly character. The new central bank (with twelve
branches, ultimately) would be very similar to the old Bank of the United States. It
would eventually be given a monopoly over the national currency and create that
money out of nothing.
How does the Fed "create" money out of nothing?
Bonds are simply promises to pay - or government IOUs. People buy bonds to get a
secure rate of interest. At the end of the term of the bond, the government repays
the principal, plus interest (if not paid periodically), and the bond is destroyed.
There are about 3.6 trillion dollars worth of these bonds at present. The Fed
moneymaking process is as follows:
Step 1. The Fed Open Market Committee approves the purchase of U.S.
Bonds on the open market.
Step 2. The bonds are purchased by the New York Fed Bank from
whoever is offering them for sale on the open market.
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Step 3. The Fed pays for the bonds with electronic credits to the
seller's bank, which in turn credits the seller's bank account. These
credits are based on nothing tangible. The Fed just creates them.
Step 4. The banks use these deposits as reserves. They can loan out
ten times the amount of their reserves to new borrowers, all at interest.
In this way, a Fed purchase of, say a million dollars worth of bonds, gets turned into
over 10 million dollars in bank deposits. The Fed, in effect, creates 10% of this
totally new money and the banks create the other 90%. To reduce the
amount of money in the economy, the process is just reversed - the Fed sells bonds
to the public, and money flows out of the purchaser's local bank. Loans must be
reduced by ten times the amount of the sale.
22. FED ACT OF 1913

Once Wilson was elected, Warburg, Baruch and company advanced a "new" plan,
which Warburg named the Federal Reserve System. The Democratic leadership
hailed the new bill, called the Glass-Owen Bill.
Publicly, the Money Trust trotted out Senator Aldrich and Frank Vanderlip, the
president of the Morgan/Rockefeller dominated National City Bank of New York and
one of the Jekyll Island seven, to offer token opposition to the new Federal Reserve
System.
During the debate on the measure, Senators complained that the big banks were
using their financial muscle to influence the outcome. "There are bankers in this
country who are enemies of the public welfare," declared one Senator. What an
understatement!
Despite the charges of deceit and corruption, the bill was finally rammed
through the House and Senate on December 23, 1913. Only weeks earlier,
Congress had finally passed a bill legalizing the income tax.
As with the Bank of England, the interest payments had to be guaranteed by
direct taxation of the people. The Money Changers knew that if they had to rely
on contributions from the states, eventually the individual state legislatures would
revolt and either refuse to pay the interest on their own money, or at least bring
political pressure to bear to keep the debt small.
In 1895 their Supreme Court had found a similar income tax law to be
unconstitutional. The Supreme Court even found a corporate income tax law
unconstitutional in 1909. As a result, in October, 1913 Senator Aldrich hustled a bill
through the Congress for a constitutional amendment allowing income tax but could
not be able to get it through.
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A year after passage of the Federal Reserve Bill, Congressman Lindbergh explained
how the Fed created what we have come to call the "Business Cycle" and how they
use it to their advantage:
"To cause high prices, all the Federal Reserve Board will do will be to
lower the rediscount 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 a 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.
They know in advance when to create panics to their advantage. They
also know when to stop panic. Inflation and deflaion work equally well
for them when they control finance..."
Three years after the passage of the Federal Reserve Act, even President Wilson
began to have second thoughts about what he had unleashed during his first term
in office.
"We have come to be one of the worst ruled, one of the most
completely controlled governments in the civilized world - no longer a
government offree 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 organized, 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."
Before his death in 1924, President Wilson realized the full extent of the damage he
had done to America, when he sadly confessed:
"I have unwittingly ruined my government"
Finally, the Money Changers, had their privately owned central bank installed again
in America. The major newspapers (which they owned or heavily influenced through
their advertising) hailed passage of the Federal Reserve Act of 1913. The 5th
Amencan Bank War ended in victory for the Money Changers and the defeat of the
American people.
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23. MORGAN/WORLD WAR I

Economic power was now centralized to a tremendous extent. Now it was time for a
war - a really big war - in fact, the first World War. During the 119-year period
between the founding of the Bank of England and Napoleon's defeat at Waterloo,
England had been at war for 56 years. And much of the remaining time, she'd been
preparing for war.
In World War I, the German Rothschilds loaned money to the Germans, the British
Rothschilds loaned money to the British, and the French Rothschilds loaned money
to the French.
In fact, six months into the war, Morgan became the largest consumer on earth,
spending $10 million a day. His offices at 23 Wall Street were mobbed by brokers
and salesmen trying to cut a deal. Other Rothschild allies in the United States made
out as well from the war. According to historian Jarnes Perloff, both Baruch and the
Rockefellers profited by some $200 million during the war.
Three years after World War I broke out, the Russian Revolution toppled the Czar.
Jacob Schiff of Kuhn, Loeb & Company bragged on his deathbed that he had spent
$20 million towards the defeat of the Czar. But the truth was that much of that
money funded the communist coup replacing the democratically elected Kerensky
regime, which had replaced the Czar months earlier.
The bankers were not so much enemies of the Czar, as they were intent on seizing
power in Russia, through the Bolsheviks. Three gold shipments in 1920 alone, from
Lenin to Kuhn, Loeb & Company and Morgan Guaranty Trust repaid the $20 million
to the bankers, and this was just a small down payment.
The London/Wall Street axis elected to take the risk. The master-planners
attempted to control revolutionary communist groups by feeding them vast
quantities of money when they obeyed, and contracting their money supply,
or even financing their opposition or fascist parties in bordering nations, if
they got out of control.
Who was behind it? Rep. Louis T. McFadden, the Chairman of the House Banking
and Currency Committee throughout the 1920s and into the Great Depression years
of the 1930s, 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
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corrupt and dishonest Federal Rseerve Roard and the Federal Reserve
banks."
The Fed and the Bank of England, along with their controlling stock-holders, the
Rothschilds, Rockefellers, Morgans, Schiffs, Warburgs, etc., were creating a
monster, one which would fuel seven decades of unprecedented Communist
revolution, warfare, and most importantly - debt.
The Soviet Union was also a useful counterbalance to Germany, and later to the
U.S., until 1989 with its dismemberment into fifteen countries. China then became a
new counterbalance to the U.S., and is being built up at the rate of over $100
million dollars a day by lopsided trade deals, IMF loans and Western investments.
Such balance-of-power arrangements assure that the Money Changers cannot be
overthrown worldwide by a political revolt in any single country. In that case, they
simply shift support to the counter-balanced country. Additionally, the inevitable
military rivalry between roughly balanced powers results in massive expenditures
and so more national borrowing and debt.
Even in the socialist paradise, Rockefeller's National City Bank (now Citigroup) in St.
Petersburg was never nationalized, as were all Russian banks. Numerous Western
bankers operated openly in the Soviet Union, and made vast profits.
In 1992, The Washington Times reported that Russian President Boris Yeltsen was
upset that most of the incoming foreign aid was being siphoned off "straight back
into the coffers of Western banks in debt service." Much of that debt was incurred
under the prior communist regimes, which were heavily in debt to the Money
Changers.
The bankers' three main regional groupings: the European Union, the proposed
American Union in the Western hemisphere, and Chinese dominance in Asia, are
rapidly bringing to life Orwell's three virtually identical world nations set forth in his
book 1984: Eurasia, Oceania and East Asia - all set to engage in perpetual war
(WWIII) with its attendant debt and population reduction and control.
Senator Nye of North Dakota raised the possibility that the Wilson administration
entered WWI, at a critical juncture for the allies, in order to protect huge Wall Street
bank loans to the allies. During the War the U.S. money supply was doubled to pay
for it, halving the dollar's purchasing power and so -----Americans' savings.
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Title 24-26 by Hammad Rashid
Causes of Great Depression

There were many factors that led to the Great Depression. It did not take place
overnight, but many years. Critics claim that there were some people who brought
it about deliberately.
Federal Reserve Bank

J P Morgan was the financier to the world at large. It wanted to create a reason to
construct a Central Bank which would cater to the needs of all people, and give
them a sense of comfort and security, knowing that their money was safe.
What it actually wanted was to control the money supply in the economy, which it
would be able to through a central or federal bank.
The crash of 1907 is considered to be the torque which led to the formation of the
Central bank or Federal Reserve Bank.
The purpose of this bank was not to save people’s money more efficiently, but to
build more and more profits by playing with it.
J P Morgan was able to create a need for a central bank by convincing people by
saying:
“If there were a central bank at the time of Stock market crash, people
might not have suffered so much.”
The Federal Reserve Bill was approved on Dec 22, 1913. Now, the central bank was
in the hands of an elite few. The future of American economics would now be in
private hands.
After the formation of Federal Reserve Bank they began to play around with the
money entrusted to them. At that time, industries used to grow from their own
profits and there was no concept of borrowing. Therefore, these nefarious few
began to work on how to curb these practices and bring about a revolution in the
course of events.
The Big Game

The Federal Reserve Bank creates money with the following four-step process:
1. Federal open market committee approves the purchase of US$ in the open
market.
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2. The bonds purchased by FED are then up for sale in open market.
3. The Federal Reserve Bank pays for the bonds with electronic credits to the
sellers’ banks, which in turn credit the sellers’ accounts. These credits are
based on nothing! The FED just creates them in simpler terms when it
purchases any Bonds from those who do not transfer cash to their accounts.
They just create a credit electronically to their banks accounts.
4. The banks used these deposits as reserve (actually there were no reserves),
and can loan out 10 times the amount to new borrower and get interest on it.
That’s how they began to play with money, and to control the money supply in the
economy by selling and purchasing these bonds. They can create shortages as well
as excess of money in the economy.
The another thing they started was the expansion of credit, which caused the stock
market to rise, so investor felt safer, and began to increase their investments. They
then suddenly raised the interest rates so investors who had taken the loans began
to take new loans to pay off the previous loans. Thus they created Business Cycles.
By mid-1930, interest rates had plunged, but expected deflation and the reluctance
of people to add new debt by borrowing, meant that consumer spending and
investment was depressed. In May 1930, automobile sales had declined to below
the levels of 1928. Prices in general began to decline, but wages held steady in
1930; but then a deflationary spiral started in 1931. Conditions were worse in
farming areas, where commodity prices plunged, and in mining and logging areas,
where unemployment was high and there were few other jobs. The decline in the US
economy was the factor that pulled down most other countries at first, and then
internal weaknesses or strengths in each country made conditions worse or better.
Frantic attempts to shore up the economies of individual nations through
protectionist policies, such as the 1930 U.S. Smoot–Hawley Tariff Act and retaliatory
tariffs in other countries, exacerbated the collapse in global trade. By late 1930 a
steady decline set in, which reached bottom by March 1933.
Structural explanations
Keynesian
British economist John Maynard Keynes argued in his book, “General Theory of
Employment Interest and Money” that lower aggregate expenditures in the
economy contributed to a massive decline in income and to employment that was
well below the average. In such a situation, the economy reached equilibrium at low
levels of economic activity and high unemployment. Keynes basic idea was simple:
to keep people fully employed, governments have to run deficits when the economy
is slowing, as the private sector would not invest enough to keep production at the
normal level and bring the economy out of recession. Keynesian economists called
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on governments during times of economic crisis to pick up the slack by increasing

government spending and/or cutting taxes.
As the Depression wore on, Roosevelt tried public works, farm subsidies, and other
devices to restart the economy, but never completely gave up trying to balance the
budget. According to the Keynesians, this improved the economy, but Roosevelt
never spent enough to bring the economy out of recession until the start of World
War II
Breakdown of international trade

Many economists have argued that the sharp decline in international trade after
1930 helped to worsen the depression, especially for countries significantly
dependent on foreign trade. Most historians and economists partly blame the
American Smoot-Hawley Tariff Act (enacted June 17, 1930) for worsening the
depression by seriously reducing international trade and causing retaliatory tariffs
in other countries. While foreign trade was a small part of overall economic activity
in the United States and was concentrated in a few businesses like farming, it was a
much larger factor in many other countries. The average ad valorem rate of duties
on dutiable imports for 1921–1925 was 25.9% but under the new tariff it jumped to
50% in 1931–1935.
In dollar terms, American exports declined from about $5.2 billion in 1929 to $1.7
billion in 1933; but prices also fell, so the physical volume of exports only fell by
half. Hardest hit were farm commodities such as wheat, cotton, tobacco, and
lumber. According to this theory, the collapse of farm exports caused many
American farmers to default on their loans, leading to the bank runs on small rural
banks that characterized the early years of the Great Depression.
Debt deflation
Irving Fisher argued that the predominant factor leading to the Great Depression
was over-indebtedness and deflation. Fisher tied loose credit to over-indebtedness,
which fueled speculation and asset bubbles. He then outlined 9 factors interacting
with one another under conditions of debt and deflation to create the mechanics of
boom to bust. The chain of events proceeded as follows:
1. Debt liquidation and distress selling C

2. Contraction of the money supply as bank loans are paid off
3. A fall in the level of asset prices
4. A still greater fall in the net worths of business, precipitating bankruptcies
5. A fall in profits
6. A reduction in output, in trade and in employment.
7. Pessimism and loss of confidence
8. Hoarding of money
9. A fall in nominal interest rates and a rise in deflation adjusted interest rates.
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During the Crash of 1929 preceding the Great Depression, margin requirements
were only 10%. Brokerage firms, in other words, would lend $9 for every $1 an
investor had deposited. When the market fell, brokers called in these loans, which
could not be paid back. Banks began to fail as debtors defaulted on debt and
depositors attempted to withdraw their deposits en masse, triggering multiple bank
runs. Government guarantees and Federal Reserve banking regulations to prevent
such panics were ineffective or not used. Bank failures led to the loss of billions of
dollars in assets. Outstanding debts became heavier, because prices and incomes
fell by 20–50% but the debts remained at the same dollar amount. After the panic of
1929, and during the first 10 months of 1930, 744 US banks failed. (In all, 9,000
banks failed during the 1930s). By April 1933, around $7 billion in deposits had
been frozen in failed banks or those left unlicensed after the March Bank Holiday
Bank failures snowballed as desperate bankers called in loans which the borrowers
did not have time or money to repay. With future profits looking poor, capital
investment and construction slowed or completely ceased. In the face of bad loans
and worsening future prospects, the surviving banks became even more
conservative in their lending. Banks built up their capital reserves and made fewer
loans, which intensified deflationary pressures. A vicious cycle developed and the
downward spiral accelerated.
The liquidation of debt could not keep up with the fall of prices which it caused. The
mass effect of the stampede to liquidate increased the value of each dollar owed,
relative to the value of declining asset holdings. The very effort of individuals to
lessen their burden of debt effectively increased it. Paradoxically, the more the
debtors paid, the more they owed. This self-aggravating process turned a 1930
recession into a 1933 great depression.
Macroeconomists including Ben Bernanke, the current chairman of the U.S. Federal
Reserve Bank, have revived the debt-deflation view of the Great Depression
originated by Fisher.
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Conclusion (Title 27 till end) by Samiya Illias

“The conventional wisdom has been unanimous: Mainstream analysts support to-the-moon forecasts for
gold and death-star-calamity forecasts for the dollar.” 13
The movie begins by asking some tough questions, and then goes on to explain the role of the goldsmiths
and money changers, the international bankers and how they plan to dominate the world through debt,
which is what the New World Order is all about.
It also concludes that central banks are now three centuries old, and no longer depend on individuals.
They are institutions, which endure and continue to grow with an aura of respectability. So, now it’s the
corrupt banking system that is the main problem. Thus, what needs to be done is to do away with the
system, and replace it with a better system which would focus on helping the masses instead of
concentrating wealth in the hands of a few.
The claim that the Fed, or rather all central banks, create monetary stability is strongly refuted, as history
is witness to the major depressions, in quick
succession, soon after the passing of the Fed bill.
“Money is much too serious a matter to be

left to the central bankers”… Milton
Friedman paraphrasing Clemenceau
What we learn from history is:
• The Federal Reserve creates debt

and perpetuates it.
• Commercial banks then create

inflation through fractional reserve
lending.
• Fiat money printed by governments is not a radical solution. Lincoln did it in

the past, and it is still a workable solution.14
• Yet, printing currency to pay off debt in the existing system of fractional
reserve banking will itself create tremendous inflation.
Milton Friedman and others have proposed an ingenious solution:
13
Elliot Wave International, newsletter Dec 07, 2009
14
Guernsey is an example of current-day example where debt-free money is in use since the
19th Century
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As the Treasury buys up its bonds on the open market with US Notes, the
reserve requirement of your hometown local bank will be proportionally raised so
the amount of money in circulation remains constant.
Once all US bonds are replaced with US notes, the banks will return to 100%
reserve banking. Monetary power will be under government control, and thus
there will be no further creation or contraction of money by banks. The US
national debt will thus be retired within a year or two, leading to a lowering of
taxes, ceasing inflation and the value of savings, wages and fixed incomes will
be preserved! The money supply in the economy should then increase slowly,
roughly in proportion to population growth and price level index, leading to
economic stability.
Elements of the monetary reform:
• Pay off the national debt with debt-free US notes
• Abolish fractional reserve banking
• Repeal the Federal Reserve act of 1913 and the National Banking Act
of 1864
• Withdraw the US from IMF, the BIS and World Bank
It is imperative that the masses are informed and really understand how money is
being manipulated, and the possible remedy to get out of this quagmire, so as not
to be fooled by false solutions proposed by vested interests. One such false solution
could be a call to return to the gold standard, as most of the gold is concentrated in
the hands of the international governmental bodies such as the IMF and the World
Bank, which seek to dominate the global economy through the New World Order.
Thus, we should also beware of any plans for regional or world currency, as that
would also be a tool to serve the same purpose.
“The Third World War has already started. It is a silent war. Not, for that reason, any
less sinister. The war is tearing down Brazil, Latin America, and practically all the
Third World. Instead of soldiers dying, there are children. It is a war over the Third
World debt, one which has as its main weapon, interest, a weapon more deadly
than the atom bomb, more shattering than a laser beam”15
The key argument as explained by Milton Friedman:
15
This quote is attributed to a prominent Brazilian politician, The Money Masters, CD2,
01:13:55
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“Any system which gives so much power and so much discretion to a few men, [so]
that mistakes – excusable or not – can have such far reaching effects, is a bad
system. It is a bad system to believers in freedom just because it gives a few men
such power without any effective check by the body politic – this is the key political
argument against an independent central bank…. ”
Global Governance plans

Sovereignty International reports that Global Governance plans are already
underway in sugar-coated terms. A summary analysis16 of Our Global
Neighbourhood reads as follows:
The Commission on Global Governance has released its recommendations in

preparation for a World Conference on Global Governance, scheduled for 1998, at
which official world governance treaties are expected to be adopted for implementation
by the year 2000. Among those recommendations are specific proposals to expand the
authority of the United Nations to provide:
• Global taxation;
• A standing UN army;
• An Economic Security Council;
• UN authority over the global commons;
• An end to the veto power of permanent members of the Security Council;
• A new parliamentary body of "civil society" representatives (NGOs);
• A new "Petitions Council";
• A new Court of Criminal Justice; (Accomplished in July, 1998 in Rome)
• Binding verdicts of the International Court of Justice;
• Expanded authority for the Secretary General.
These proposals reflect the work of dozens of different agencies and commissions over
several years, but are now being advanced by the Commission on Global Governance
in its report entitled Our Global Neighborhood (Oxford University Press, 1995, ISBN
0-19-827998-3, 410pp).
The Commission consists of 28 individuals, carefully selected because of their

prominence, influence, and their ability to effect the implementation of the
recommendations. The Commission is not an official body of the United Nations. It
was, however, endorsed by the UN Secretary General and funded through two trust
funds of the United Nations Development Program (UNDP), nine national
governments, and several foundations, including the MacArthur Foundation, the Ford
Foundation, and the Carnegie Corporation.
The Commission believes that world events, since the creation of the United Nations in
1945, combined with advances in technology, the information revolution, and the now-
16
http://sovereignty.net/p/gov/gganalysis.htm
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global awareness of impending environmental catastrophe, create a climate in which

the people of the world will recognize the need for, and the benefits of, global
governance. Global governance, according to the report, "does not imply world
government or world federalism." Although the difference between "world
government" and "global governance" has been compared to the difference between
"rape" and "date-rape," the system of governance described in the report is a new
system. There is no historic model for the system here proposed, nor is there any
method by which the governed may decide whether or not they wish to be governed by
such a system. Global governance is a procedure toward defined objectives that
employs a variety of methods, none of which give the governed an opportunity to vote
"yes" or "no" for the outcome. Decisions taken by administrative bodies, or by bodies
of appointed delegates, or by "accredited" civil society organizations, are already
implementing many of the recommendations just published by the Commission.
The Foundation for Global Governance
The foundation for global governance is the belief that the world is now ready to accept
a "global civic ethic" based on "a set of core values that can unite people of all
cultural, political, religious, or philosophical backgrounds." This belief is reinforced
by another belief: "that governance should be underpinned by democracy at all levels
and ultimately by the rule of enforceable law." ….
Conclusion
Many of the recommendations contained in this report have already been incorporated
into treaties, agreements, and proposals initiated by the international community. Some
have already been implemented. The Commission has called for the General Assembly
to schedule a World Conference on Governance in 1998. Preparatory work has already
begun. PrepComs will be conducted to develop documents on global governance -
similar to the procedure used to develop the documents presented at Rio - which are to
be adopted at the 1998 Conference and ratified for implementation by the year 2000.
Only "accredited" NGOs will be allowed to participate in the PrepComs. Only
accredited NGOs and their affiliates will participate in the adoption strategy.
More importantly, only delegates appointed by the President of the United States will
be able to cast a vote on all the issues that so dramatically affect every American. The
current Presidential appointees are the very people who helped develop the proposals
from their various positions with accredited NGOs.
…The United States is the only remaining power strong enough to influence the United
Nations. Those voices now speaking for all Americans in the United Nations are
cheering the forces that would diminish national sovereignty and render individual
liberty and property rights relics of the past. If the current voices representing the
United States continue to push for global governance, the world will be committed to a
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course which will truly transform society more dramatically than the Bolshevik
revolution transformed Russia.
The recommendations of the Commission, if implemented, will bring all the people of
the world into a global neighborhood managed by a world-wide bureaucracy, under the
direct authority of a minute handful of appointed individuals, and policed by thousands
of individuals, paid by accredited NGOs, certified to support a belief system, which to
many people - is unbeievable and unacceptable.
(Our Global Neighborhood: The Report of the Commission on Global Governance

may be obtained from Oxford University Press. Call (919) 677-0977; paperback,
$14.95, ISBN 0-19-827997-3, 410 pages.)
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The other side of the story

While reviewing the movie, we felt it imperative to check out what the defenders of
Federal Reserve and the existing system have to say about it, and evaluate their
own set of clarifications to counter the allegations made in the movie. The following
is an excerpt from a website which attempts to refute the claims made in the
movie.
17
Web Skeptic
Researching outrageous claims on the internet
Federal Reserve System

Introduction
The Federal Reserve System has been the source of conspiracy theories even before the bill
was signed into law. One reason for the proliferation and longevity of such conjectures is
the lack of available public information to directly address the allegations. This is for a
number of reasons:
• The inner workings of the Federal Reserve remains fairly clandestine. Since the
advent of the internet, the FRS and FRBs made publicly available far more
information than ever but these can still be research ‘dead ends’ when trying to find
answers on some of these topics.
• The government generally ignores conspiratal allegations.
• It is not a compelling topic for commercial media outlets from which to generate
articles, documentaries, or investigative journalism
• Many of the unique concepts regarding the Federal Reserve, monetary policy, and
related economics defy simple explanations. This lends itself to misinterpretations
and misunderstandings.
This article will try to separate fact from fiction, present only verifiable facts, include the
good and the bad, and always maintain a healthy skepticism.
Relevant Facts
The Federal Reserve System serves as the central bank for the United States. It is a
congressionally-chartered agency like the USPS and NASA. It is organized with a
government agency at the top (the Board of Governors), and branches beneath them that
resemble corporations and share control with private banks. [2]
The Board of Governors are all appointed for 14-year terms by the president and confirmed
by congress. It operates per it's charter and laws set by congress. it is overseen by
congress. Board members are forbidden by law to have any economic interest in a private
17
http://webskeptic.wikidot.com/federal-reserve-system
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bank. [3]. The Board determines monetary policy and provides high level oversight of the
branches.
The 12 branches are organized similar to corporations. Member banks are required to buy
shares in their branch. Each bank has one vote. The shares get a standard 6% dividend.
They can vote for 6 of their 9 board members. All 'profit' from the Federal Reserve branches
are turned over to the Treasury at the end of the year. [4]
The question of 'ownership'

When we use the term 'ownership', we are use the legal term as to what is defined by law,
and the rights it converys under the law.
The structure and powers of the Federal Reserve are enumerated in Title 12, chapter 3 of
the U.S. Code. [1].
The Board of Governors: A government agency

The Board of Governors is a government agency. There is absolutely no mechanism for
private ownership. The governors are appointed by the president and confirmed by
congress. Board members are forbidden from any economic interest in a bank or financial
institution. [3]
Federal Reserve Branches: Unique legal entities

Federal Reserve Branches are difficult to classify as strictly private or public. They are
congressionally chartered corporations whose structure is defined by a set of laws applicable
only to them.
How does a Federal Reserve Branch differ from a traditional corporation?
Filing for incorporation

A traditional corporation files for incorporation within a specific state.
• Federal Reserve banks filed with the Office of the Comptroller of Currency, a
department of the Treasury. There are no "Articles of Incorporation" filed in any
state.
Shares
• In a traditional corporation, shares are voluntarily purchased and sold.

• In a Federal Reserve bank, shares are compulsary and member banks are required
to purchase shares that represent 3% of their assets.
• In a traditional corporation, individuals can own stock

• In Federal Reserve banks, only member banks can own stock. There is a provision in
the law for individual private ownership of stock up to $25,000; an inquiry to the Fed
on this point indicated that no individual owns Fed stock today.
• In a traditional corporation, shares are bought and sold on the open market.
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• In a Federal Reserve bank, shares can only be bought and sold with the Bank itself.
• In a traditional corporation, shares provide the owner with a propotional number of

votes.
• In a Federal Reserve bank, shareholders are limited to one vote, regardless of the
number of shares they own.
• In a traditional corporation, shares represent proportional ownership and can be

used as collateral in financial transactions.
• In a Federal Reserve bank, shares do not convey any ownership, implied or
otherwise, against bank assets and cannot be used as collateral in financial
transaction.
• In a traditional corporation, shares change in value as the assets and earning

potential of the corporation changes.
• In a Federal Reserve bank, shares values never change.
Board of Directors
• In a traditional corporation, shareholders elect all the members of the board with no
interference from the government.
• In a Federal Reserve bank, shareholders can vote for 6 of the 9 board members of
which must be approved by the Board of Governors. The other 3 are appointed by
the Board of Governors.
Dividends
• In a traditional corporation, the board of directors determine the dividends to be paid

to shareholders.
• In a Federal Reserve bank, shareholders receive a standard 6% dividend which was
written into the original Federal Reserve act passed in 1913.
Profits
• In a traditional corporation, profits (after dividends) add to the value of the

corporation as retained earnings.
• In a Federal Reserve bank, excess profits must be turned over to the Treasury at the
end of the year.
Taxes
• Unlike traditional corporation, Federal Reserve banks are exempt from state and
Federal taxes.
Status of Employees
• Employees of the Board of Governors (clearly defined as a government agency) are

considered Federal employees.
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• Federal Reserve branch employees are not considered 'civil service' and have their
own payroll, benefits, and retirement system. This would be in keeping with a
general ideal of maintaining a certain independence from the rest of the government,
and therefore less susceptable to political influence.
Public or Private? What others say
Court rulings
Branches are private corporations acting as government agents
Courts have consistently ruled that, for the purposes of applying laws, the branches can be
considered private corporations that act as agents or instruments for the federal
government. This means they can be sued as private corporations in tort law, but their
duties may be construed as extensions of the Federal government.
Federal Reserve:
Branches are non-profit corporations
At their web site, the Federal Reserve describes the branches as corporations operated for
non-profit purposes [http://federalreserve.gov/generalinfo/faq/faqfrs.htm#5]. The Fed
indicates the shers do not constitute ownership as such. The 'non-profit' aspect is only
partly true as member banks receive a 6% dividend on their shares.
Congress
• A report from the Congressional Research Service (1996) declares the banks as
'private institutions' along with many of the caveats listed above.
• Congressman Ron Paul has consistently called the Federal Reserve a 'private bank'
but does not distinquish the Board of Governors government agency from the branch
banks.
Wikipedia
[http://en.wikipedia.org/wiki/Federal_Reserve_System] At one time, wikipedia declared the

branch banks as 'nominally owned' by the member banks. As of this writing, it declares the
banks as acting as fiscal agents for the U.S. Treasury.
Factcheck.org
[http://www.factcheck.org/askfactcheck/who_owns_the_federal_reserve_bank.html] says
the branches are 'owned by big private banks. But the banks don't necessarily run the
show. "
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Hoovers
Hoovers says the Federal Reserve system is a Government agency, and describes the
branches as "Private- Member-owned Banking Authority"
Conspiracy claims
Claim: The Federal Reserve System is a private bank
False As a system, it is a supervised by the Board of Governors (a government agency) and

overseen by Congress. However, the branches share control and ownership with member
banks.
Claim: "It is owned by the Bank of England (or the Rothschilds or Rockefellers)"
False There is no structure anything resembling ownership except for the participation
shares owned by member banks.
Claim: "All profit goes to private entities (such as banks, families, or individuals)"
False Beyond a standard 6% dividend paid to member banks, all other profit is turned over
to the U.S Treasury at the end of the year.
Claim: The Federal Reserve owns all U.S. Debt
False The Federal Reserve owns about 17% of the U.S. Debt. This is used as collateral for
U.S. dollars. Since the money supply continually grows, this debt never really has to be paid
back. When the bonds do mature, the Fed replaces them with new bond purchases.
Claim: All Income Tax goes to the Federal Reserve
False This is based on three false assumptions:
1. that interest on the deficit equals or exceeds Income Tax revenues

2. that only income tax is used to pay the interest
3. that the Federal Reserve owns all the debt
All the above are false
Claim: The Federal Reserve has never been audited
False By law, the Federal Reserve and all it's banks are audited at least once a year.
Claim: There is no gold backing Federal Reserve Notes
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False There is a relatively small amount of gold among the collateral used to back Federal
Reserve notes. Out of $800B in currency, $11B of the collateral in gold (more accurately it
is in Gold Certificates; the actual gold is held by the Treasury)
Claim: John F Kennedy signed executive order 11110 that would have put the
Federal Reserve out of business; and was subsequently assassiated
Though there are some elements of truth, the basic presumption is not true.
True … Kennedy was assassinated (contrary to rumors of him living in Argentina with Hitler
and Elvis)
True … that Kennedy signed Executive Order 11110 which delegated authority to the
Treasury Secretary to print silver certificates at will (ref:
[http://en.wikipedia.org/wiki/Executive_order_11110] ).
False … that this would put the Federal Reserve out of business.
One only needs to examanine the claims to realize how silly the theory is. Given all the Fed
duties and responsibilities, to claim that issuing silver certificates would nullify all the Fed
duties is preposterous. Ever since it's inception, the Federal Reserve has worked with
whatever the currency of the realm. Federal Reserve notes circulated along side silver
certificates, gold certificates, and coins. From a day-to-day operations side, it really makes
no difference. History showed that the government was trying to get away from the silver
standard. Silver prices were rising to the point where a silver dollar would have more than a
dollars worth of silver. This executive order was seen as giving the Treasury Secretary more
flexibility to do that.
There was not enough silver to replace all the currency in circulation with silver certificates.
Kennedy scholars have concluded this theory a hoax.
In this link (http://www.devvy.com/patriot4_20021117.html ), there is a story on a Ron

Paul aide doing research to 'prove' the story only to come up empty.
[http://mcadams.posc.mu.edu/weberman/jfk.htm]
[http://www.lib.umich.edu/govdocs/jfkeo/eo/11110.htm]
[http://www.devvy.com/patriot4_20021117.html]
Claim: Woodrow Wilsonwas quoted expressing strong regrets about

the signing the Federal Reserve into law
I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation
is controlled by its system of credit. Our system of credit is concentrated. The growth of the
nation, therefore, and all our activities are in the hands of a few men. We have come to be
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one of the worst ruled, one of the most completely controlled and dominated governments
in the civilized world. No longer a government by free opinion, no longer a government by
conviction and the vote of the majority, but a government by the opinion and duress of a
small group of dominant men.
False This alleged quote was derived from portions of the book The New Freedom published
in 1913. This book was a compilation of speeches from 1911 and did not refer to the Federal
Reserve.
www.salon.com article
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References
Official Site
http://themoneymasters.com/
Script
http://www.mailstar.net/money-masters.html
Videos
http://www.youtube.com/watch?v=FJuN2s5gP-8
http://www.youtube.com/watch?v=K9DLTodogHo
http://www.youtube.com/watch?v=fmuCS77W06U
http://www.youtube.com/watch?v=mchrPvt1KtM
http://www.youtube.com/watch?v=Ivo4VtfQhlw
More web links

http://sovereignty.net/
http://www.wakeupordie.com/html/healthy/moneymasters.html
http://www.rys2sense.com/anti-neocons/viewtopic.php?f=28&t=1715
http://webskeptic.wikidot.com/start
http://www.federalreserve.gov/boarddocs/rptcongress/
http://www.archive.org/details/TheMoneyMasters
http://www.plim.org/CONSPIRACY.htm
http://www.plim.org/newadd.html
http://www.plim.org/revelation.html
http://www.ronpaulforums.com/showthread.php?p=1386494
http://accesstoinfo.blogspot.com/2009/11/money-masters-and-
welfarewarfarepolice.html
Submitted by:
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Islamic scholar, Dr Khalid Zaheer on Riba

http://www.khalidzaheer.com/essays/kzaheer/economic%20issues/what_is_riba.html
Images
Federal Reserve Building
http://commendatori.files.wordpress.com/2008/08/federal-reserve-building.jpg
The Money Masters

http://lionandlambministry.com/seyretfiles/images/video_i168_photobucket_com_alb
ums_u187_Thundercrack3_moneymasters_jpg.jpg
Time value of money

http://www.nationalexpositor.com/files.php?file=Dollarpower_290398287.jpg
Pyramid
http://www.grinningplanet.com/3001/spotlight/googlevideo/the-money-
masters_178x140.jpg
Dollar obverse
http://upload.wikimedia.org/wikipedia/commons/7/7b/United_States_one_dollar_bill,_
obverse.jpg
Gold Standard bars

http://www.opposingviews.com/attachments/0000/0433/gold_standard_main.jpg
Gold Standard black

http://i59.photobucket.com/albums/g307/excipient/Gold_Standard_logo_gold.jpg
Great Seal
http://www.istockphoto.com/file_thumbview_approve/589717/2/istockphoto_589717
-great-seal-of-the-
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52114 82003 91017 81047 91022 91007

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The

Term Assignment: The Money Masters

Assigned by: Mr Farrukh Hassan

Dated: Term ending December 2009

Presented and submitted on: 11th December 2009

Abdul Qadir 52114

Intro till Title 7 by Arsalan Vohra.............................................................................5

Preamble to the Report........................................................................................5

Section 1-7 Summary ..........................................................................................6

Title 8-16 by Kashif Ahmed Khan...........................................................................16

Title 17-19 by Razia Pukhraj..................................................................................24

Title 20-23 by Abdul Qadir ....................................................................................35

Title 24-26 by Hammad Rashid.............................................................................42

Conclusion (Title 27 till end) by Samiya Illias........................................................46

Global Governance plans...................................................................................48

The other side of the story.......................................................................................51

Federal Reserve System .......................................................................................51

More web links.......................................................................................................58

Islamic scholar, Dr Khalid Zaheer on Riba.............................................................59

Intro till Title 7 by Arsalan Vohra

Preamble to the Report

Section 1-7 Summary

The Federal Reserve Act 1913

Whoever issues the money – Why is it so important?

World Domination – A perspective

 Crux of the Problem

 Practical Application of Fractional Reserve Banking

Title 8-16 by Kashif Ahmed Khan

we control its purchasing power, and we have no interest to pay to no

9. THE BANK OF NORTH AMERICA

10. THE CONSTITUTIONAL CONVENTION

11. FIRST BANK OF THE UNITED STATES

12. NAPOLEON'S RISE TO POWER

13. DEATH OF THE FIRST BANK/THE WAR OF 1812

15. SECOND BANK OF THE U.S.

16. ANDREW JACKSON

Title 17-19 by Razia Pukhraj

Abraham Lincoln (1861 - 1865)2

“I have no purpose, directly or indirectly, to

“My paramount objective is to save or destroy slavery. If I could save the

19th Century National Politics

Members of Congress enforced an informal gag rule which prevented debates on

Following the Kansas-Nebraska Act of 1854, those opposed to the expansion of

Otto von Bismarck

(Referring to the assassination of Lincoln by John Wilker Booth, a Rothschild agent)

----Otto Von BismarK

"Amasa Walker, a distinguished financier of New England, suggested that notes

"'The Secretary of the Treasury will please consider

Colonel Dick Taylor

THE GREENBACK ISSUE AND COL. TAYLOR

The Two Step Plan to National Economic Reform and Recovery

By resorting to the issue of "greenback" currency, Lincoln launched "a national

In accordance with this sound conclusion, being on the side of humanity, he

LINCOLN'S MONETARY POLICY

National Bank Act he had been pressured into

Salmon Portland Chase

As Secretary of the Treasury in President Abraham Lincoln's cabinet in 1861-1864,

Title 20-23 by Abdul Qadir

21. JEKYLL ISLAND

22. FED ACT OF 1913

23. MORGAN/WORLD WAR I

Title 24-26 by Hammad Rashid

Causes of Great Depression