Chapter Ten:
THE FEDERAL RESERVE TODAY
Today in the 1990s the Federal Reserve quietly, and
protected from any public examination or accounting, continues
its never challenged monopoly of the money supply.
Its twofold function is: (a) to regulate the flow of credit and
money for specific economic objectives, and (b) to supervise
commercial banks, i.e., mostly itself.
The central policymaking body of the FRS is the Board of
Governors appointed by the President and confirmed by the
Senate. Each of the 12 regional banks has its own directors. These
are divided into three classes. Class A directors represent the
banking system, Class B directors represent industry and Class C,
the public, supposedly.
In fact, Class C directors have never represented the public.
It is not at all unusual for a banker to serve a term as a Class A
director then go on and serve another term as a Class C director.
The Federal Reserve is a private system owned by the banks
(see figure below). Fed control over money is a private monopoly
granted by Congress.
It's so powerful that no Congressman dare ask simple
questions.
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The Federal Reserve Conspiracy
Of course, there is good reason why the Fed doesn't want citizens
poking around asking questions. It is a moneymaking machine literally
— and this is freely admitted by the U. S. Government. Here is an
official statement:
Where does the Federal Reserve get the money with which
to create bank reserves'?
It doesn't "get" the money, it creates it. When the
Federal Reserve
writes a check it is creating money. This can
result in an increase in bank reserves - a demand deposit or in
cash. If the customer prefers cash he can demand Federal Reserve
Notes and the Federal Reserve will have the Treasury Department
print them. The Federal Reserve is a total moneymaking machine.
It can issue money or checks. And it never has a problem in
making its checks good because it can obtain $5 and $10 bills
necessary to cover its checks simply by asking the Treasury
Department to print them. (Source: Money Facts, published by the
Committee on Banking and Currency, 1964, U. S. Congress.)
Back in 1913 when the Federal Reserve Act was passed, the idea
of a Federal Reserve System - in effect a central bank - was promoted to
the American people by both bankers and President Woodrow Wilson
as an institution outside the control and influence of bankers - on the
grounds that monetary policy was too important to be left in the hands
of private interests. However, in fact, the institution is completely
dominated, and always has been, by major New York bankers.
The Fed lied!
The very first meeting of the Federal Reserve Bank of New York
on October 5, 1914, was held in the offices of the Bank of Manhattan,
40 Wall Street, New York. Bank of
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The Federal Reserve Today
Manhattan later merged with Chase National to become Chase
Manhattan Bank.
Skipping intervening history for lack of space, we also find that in
the mid-1970s, the leading Class A director of the New York Fed was
none other than Chairman of the Trilateral Commission - David
Rockefeller. David's term expired in 1976 and he was replaced by the
chairman of Morgan Guaranty Trust. However, David's influence was
perpetuated in two ways: by appointment of Trilateral Paul Volcker as
president of the New York Federal Reserve Bank, a permanent position
not subject to the necessity of re-election at periodic intervals and
appointment of G. William Miller (member of the Chase Advisory
Board) as Chairman of the Federal Reserve System, replacing
Trilateralist Arthur Burns.
Moreover, others (of the nine) Federal Reserve Bank of New York
directors had links to Chase Manhattan Bank. For example, the three
Class B directors were Maurice F. Granville, Chairman of the board of
Texaco; William S. Sneath, Chairman of the Board of Union Carbide;
and John R. Mulhearn, President of New York Telephone.
Let's look briefly at the career of Paul Volcker, former president of
the New York Federal Reserve Bank. In 30 years, Volcker has divided
his time almost equally between the Federal Reserve Bank, Chase
Manhattan Bank and sub-cabinet positions in Washington, D.C. - a
perfect example of the so-called "revolving door" and the Trilateral
objective of "blurring the distinctions between public and private
institutions" for Trilateral advantage.
Paul Volcker was born in 1927 in New Jersey. His first degree is
from Princeton, his M. A. from Harvard and his post-graduate work
from the London School of Economics -that well known home of
British socialism. In 1952, straight from the London School of
Economics, Volcker joined the Federal Reserve Bank of New York as
an economist. He stayed for five years, until 1957, at which time
Volcker moved
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The Federal Reserve Conspiracy
from Liberty Street to become an economist for Chase Manhattan Bank,
where he stayed for four years, until 1961. In 1961, Volcker went to the
Treasury Department in Washington, thus completing the first round of
his three stop "revolving door." Appointed as Deputy Undersecretary
for Monetary Affairs, he held that job just long enough to learn the
ropes in Washington, and returned to New York, to Chase Manhattan
Bank, as Vice President in charge of Planning. After three years in that
post, Volcker left in 1969 to become Undersecretary for Monetary
Affairs at the U. S. Treasury Department. After five years, Volcker
completed the second round of his "revolving door" with an
appointment as President of the Federal Reserve Bank of New York.
Volcker is also a member of the Council on Foreign Relations, the
Rockefeller Foundation and the American Friends of the London
School of Economics.
If Paul Volcker was a solitary phenomenon, we could make no
case for Trilateral control of the Federal Reserve System. In fact, the
Volcker phenomenon is one of a dozen parallel situations.
The Revolving Door Career of Trilateral Paul
Volcker
1952-57 Economist, Federal Reserve Bank of New York 1957-
61 Economist, Chase Manhattan Bank 1962-63 U.S. Treasury
1963-65 Deputy Undersecretary for Monetary Affairs,
U.S. Treasury 1965-68 Vice President for Planning,
Chase Manhattan
Bank 1969-74 Undersecretary for Monetary Affairs,
U.S. Treasury 1975 President, Federal
Reserve Bank of New York
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The Federal Reserve Today
The Federal Reserve Board itself is appointed by the President.
The original Federal Reserve Board represented those very
interests that Woodrow Wilson assured the American public would not
be represented in the Federal Reserve System. The Chairman of the
Board was William G. M'Adoo, a prominent Wall Street figure, former
Secretary of the Treasury - and Woodrow Wilson's son-in-law. A key
appointment was Paul M. Warburg, the German banker brains behind
the Federal Reserve System. The Warburg family controlled the
Manhattan Bank. Also on the Board was Charles S. Hamlin, of the
Carnegie Endowment for International Peace. Another member of the
original board was banker W. P. G. Harding. Franklin D. Roosevelt's
uncle, Frederic A. Delano, was Vice Governor of the board - very
appropriate because the "liberal" Roosevelts came from an old-time
New York banking family. John Skelton Williams, President of the
Richmond Trust Company was another member. Thus, the initial
makeup of the original Board of Governors reflected the elite and the
banking interests and from that time on the Federal Reserve System has
continued to reflect those interests.
Trilateral Arthur M. Burns was Chairman of the Board from 1970
to 1978, a dominant voice who pretty much dictated Federal Reserve
policy. According to Board member and Trilateral Andrew Brimmer,
"Arthur Burns has had a direct hand in selecting every board member. "
Trilateral dominance of the domestic monetary system suggests
we examine Trilateral world order objectives for a possible linkage.
Trilateral policy makers and analysts fully realize that the world
monetary system, with created money as reserve assets, is in a state of
collapse. The Triangle Papers dealt with the world monetary systems
(Towards a Renovated World Monetary System), and was authored by
Richard N. Cooper
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The Federal Reserve Conspiracy
(later Undersecretary of State for Economic Affairs). Motoo Kaji,
Professor of Economics at Tokyo University (author of a book in
Japanese, Gendai No Kokusai Kinyu - Contemporary International
Monetary Affairs) and Claudio Segre, a French banker with Compagnie
Europeenne de Placements.
Triangle Paper No. 1 identified two world problems: (a), how to
achieve full employment without "rapid" inflation, and (b), how to
combine "managed" national economies into a "mutually beneficial
world economy."
It is vital to hold Trilateralist assumptions in mind. Trilateralists
are not looking for a solution to the world monetary problems:
Trilateralists are looking for a "solution" consistent with, and which
will promote, their own objectives. These objectives are: (a), a managed
economy, i.e., managed by Trilaterals; and (b), a "new world order" of
these managed economies.
Once again we find manipulation of a problem to achieve
Trilateral objectives. Almost on a daily basis we find reflections of the
struggle to keep a hold on the U.S. monetary system in order to achieve
a world federal reserve system.
Fed Monetizes Foreign Debt
In the early 1980s the Fed, through Paul Volcker, conned
Congress into another vast expansion of monetary credit through
monetization of foreign debt instruments.
The so-called Depository Institutions Deregulation and Monetary
Control Act of 1980 is a total misnomer. In practice it brings all banks
under Fed control whether they like it or not and gives the Fed power to
vastly increase fiat money by monetizing foreign debt, much of it
worthless (see attached reproduction from the Bill).
Once again the Fed did everything possible to avoid publicity.
Only one Congressman, Dr. Ron Paul, spotted the clause to monetize
foreign debt. To avoid any publicity, the
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The Federal Reserve Today
Chairman of the Banking Committee quickly agreed to Paul's request to
remove the clause: "You want it removed? We'll take it out."
Then we get a repeat of the unconstitutional conduct surrounding
the 1913 FRS Act. The House voted for the Bill without the clause - but
in Conference Committee it was quietly re-inserted and became part of
the Act as finally approved by both Houses. We doubt any
Congressman knew what was included in the bill as finally passed -
that's the influence of the Fed today.
Quietly, without fanfare - and with the vast bulk of citizens
unaware - the world bankers have been building an international money
machine: an international Federal Reserve System with power to
control the world's financial and economic system.
The elements of this global money machine can be traced back to
the League of Nations and the Bank of International Settlements in the
1920s. After World War Two the International Money Fund and the
World Bank were instituted to globalize credit and loans.
Then in the late 1950s came the Eurodollar market, now a vast
international market dealing in deposits and credits denominated in
dollars outside the United States. The Eurodollar system may in the
light of history come to be seen as a first step in a global dollar system.
Eurodollars are dealt in by banks not resident in the U.S. and by
institutions not subject to U.S. banking regulations and restrictions.
Paul A. Volcker, former Fed Chairman, has made the role of
appointments to the Federal Reserve Board clear, - to support the
Chairman's policy.
In reference to Clinton appointment Alan Blinder, Volcker
commented:
I think a vice chairman has a responsibility for supporting
policy in public statements. If he has
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The Federal Reserve Conspiracy
any real difference of opinion at the end of the day that shouldn 't
be disguised but as much as possible he should support the
institution.
In brief, the policy created by New York bankers should prevail,
whatever the personal opinions of the Vice Chairman of the Board or
any lesser Director. Which is about as close to a closed shop monopoly
as one can get.
In replying to criticism that he spoke out too much, Alan Blinder
made a revealing comment: "When we take actions, they are not
reversible by any other body of government..." New York Times,
September 26, 1994.
So here we have it. The Federal Reserve is a private monopoly of
money credit created by Congress under highly questionable
circumstances which is beholden to the Chairman of the Board and
whose decisions cannot be changed by Government or anyone else.
A free society under the rule of law? The United States has quietly
become a hostage to a handful of international bankers. And just dare
any Congressman challenge Fed authority!
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The Federal Reserve Today
Federal Reserve Bank of San Francisco Claims "Some people
think we're a branch of the Government We're not
We're the banks' Bank. "
This confirms our discussion in this book.
July 16, 1979-
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115
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