Image courtesy of american_rugbier under CC BY-SA 2.0.
All Hail, Alan Greenspan. So the toast will sound later this week when Greenspan will receive honorary knighthood in Britain for stethe injustice that is inherent in granting a government sponsored monopoly to the bank; (2) the unconstitutionality of the bank even if it were not unjust; and (3) the dangers to the country in having the bank heavily dominated by foreign investors.” (Griffin 348-349). Jackson understood that a republic could not exist if a small elite group controlled the money supply.
Jackson won that re-election campaign and did not wait long after the verdict of the public at large to act. After getting re-elected, he immediately began removing federal funds from the Bank of the United States and began placing deposits in various state banks.
Nelson Biddle responded in kind. “His plan was to rapidly contract the nations money supply and create another panic-depression similar to the one the bank had created thirteen years earlier. This then could be blamed on Jackson’s withdrawal of federal deposits.” (Griffin 354) The plan worked at first and congress censured President Jackson.
Finally the truth about the whole affair did get out and “the turning point came when Governor George Wolf of Pennsylvania, the Bank’s home state came out publicly with a strong denunciation of both the Bank and Biddle” (Griffin 356). Congress soon produced three resolutions that supported Jackson. They said that the bank shouldn’t be re-chartered, that the funds shouldn’t be restored, and also called for a special committee to investigate whether the bank had deliberately manipulated the economic crises. The Senate later rescinded the censure of Andrew Jackson.
Biddle still was immensely powerful, he actually refused to testify before congress, disclose correspondence with congressman regarding personal loans, as well as defying a congressional subpoena to examine the banks books. “Jackson had completely paid off the national debt incurred by the war of 1812, and had even run up a surplus. In fact he ordered the treasury to give back to the states 35 million”. (Griffin 357) Finally, the Bank of The United States expired in 1836. Andrew Jackson had driven a stake through the heart of the beast.
“In the text book summaries that school children must read, Jackson’s Bank War sounded like a cranky oddment of history, one of those dead controversies from the past for which students are required to memorize the dates, but not to understand.” (Greider 254) Selective Tradition practiced by institutions of education, or rather, Selective Ignorance, has been an effective tool of disinformation regarding this topic. To understand Jackson’s bank war, would also be to understand the fraudulent banking system and the interest slavery that exists today in America.
The days of Fractional Reserve Banking are long gone and have been replaced by interest slavery and Fiat currency. Less than a hundred years after Andrew Jackson rescued the republic by driving a stake through the heart of what he referred to as the monster, the beast was resurrected.
In a secret meeting in 1910 at J.P. Morgan’s estate on Jekyll Island off the coast of Georgia, banking rivals met to mastermind what later became the Federal Reserve Banking system. Attending the meeting were: “(1) Nelsen W. Aldrich, Republican whip in the senate, Chairman of the National Monetary Commission, father in law to John D. Rockefeller, Jr.; (2) Henry P. Davison, Sr. Partner of J.P. Morgan Company; (3) Charles D. Norton, Pres. Of 1st National Bank of New York; (4) A. Piatt Andrew, Assistant Secretary of the Treasury; (5) Frank A. Vanderlip, President of the National City bank of New York, representing William Rockefeller; Benjamin Strong, head of J.P Morgan’s Bankers Trust Company, later to become head of the system; Paul M. Warburg, a partner in Kuhn, Loeb and Company, representing the Rothschilds and Warburgs of Europe.” (Griffin 24)
Engineered by a banking powerbroker named Paul Warburg, these rivals formed a cartel and later succeeded to trick and manipulate Congress and the public to implement a government protected monopoly.
“What emerged was a cartel agreement with five objectives: stop the growing competition from the nations newer banks; obtain a franchise to create money out of nothing for the purpose of lending; get control of the reserves of all banks so that the more reckless ones would not be exposed to currency drains and bank runs; get the taxpayer to pick up the cartel’s inevitable losses; and convince congress that the purpose was to protect the public.” (Griffin 23)
The Federal Reserve Act of 1913, in many ways, hijacked the Constitutional republic called the United States of America. Here a banking monopoly was created were money would be created out of thin air, there would be no competition for the cartel, and the police powers of the federal government would not only protect the cartel, but enforce Federal Reserve notes as the legal currency of the United States.
The Federal Reserve would go on to lend money to member banks at a prime rate. These banks would in turn lend to smaller banks at a rate of interest. Finally, the smaller banks would lend money to consumers who would pay back their loans with interest. Simulating a pyramid scheme, the Federal Reserve sits at the top, creating money out of nothing, which everyone down the line must in one way or another pay back with interest.
The Federal Reserve would also buy United States Treasury bonds, which the government would pay back with interest. This accounts for much of the national debt. This situation gives unscrupulous members of congress, the ability, if necessary, to have an unlimited amount of money to spend. The cost, of course, is enslaving the taxpayers with a manufactured debt.
The only way that money, which is created out of thin air, is put into circulation is by creating debt to the public at large, or to the government. The absurdity of the situation was highlighted shortly after the September 11th bombings as economic gurus popped onto the television screens telling American’s to incur further credit card debts in order to stimulate the economy. A small elite group of American and international bankers has the ability to control the United States government and the people through what amounts to nothing more than interest slavery.
In comparison, the Second Bank of The United States was a baby compared to the Federal Reserve. The Federal Reserve has overseen several recessions and economic contractions, inflationary nightmares, and the Great Depression. Often shielded under the cloak of capitalism, the Federal Reserve is no byproduct of capitalism. There is not competition. Nor is it the byproduct of a republic. There isn’t any input from the populace.
The Federal Reserve is truly a monster. It is both a plutocratic and oligarchic entity that threatens the small semblance of liberty that remains in America. It seems that if this beast is not destroyed, that its tentacles will eventually destroy what is left of the Republic.
Andrew Jackson clearly defeated the greatest challenge to the republic prior to the War Between the States. One must wonder if he won’t be spinning in his grave, as Alan Greenspan becomes a Knight.
Resources:
The Creature From Jekyll island (Griffin)
Secrets of The Temple (Greider)