Fast Track to Tyranny 12.19.07: In Addendum Part 2

Posted by Brian McLain on 12.19.2007

"Give me control of a nation's money supply, and I care not who makes its laws."

Greetings to all of my faithful readers. I would like to extend a heart felt thank you so much for your patience in this very busy time for the Scotsman. I apologize for the tardy second part of my Fast Track the Tyranny: In Addendum series and I know no excuse is a good excuse. But I am back this week to continue to enlighten and delight you with a wealth of information that many of you might fight interesting enough talk about. Again, if you feel the urge please feel free to email me at the link below and tell me what's on your mind.

I left off last time with the creation of the Federal Reserve and how it came to be after so many failed attempts at a central banking system in the past. So, in continuing the unmasking of the Federal Reserve System I will be taking you on a journey of suspense and shock as the Fed takes hold of the country.

The Fed Takes Control

Given the impression that the Fed was created to be an economic stabilizer, the American people began to see real possibility and hope out of the constant boom and bust cycles. Many of these American Citizens remember the despair seen during the 1890s national depression and the constant uncertainty of the banking industry. Runs were quite common then and after the last great Panic that got the ball rolling on the Federal Reserve Act in the first place, this was welcome news. Little did the Citizens know, however, that the Fed had virtually no oversight in its practice, was directed by robber baron bankers such as J.P. Morgan's firm, the power of the Fed actually "usurped the government" (Louis McFadden-Congressman) by being given direct control over the money supply in the United States. How did they accomplish this usurpation? Every dollar that is printed by the Fed is not actually a dollar, it is a lenders note. Just take a dollar out of your pocket right now and take a look at the top of the bill. It reads "Federal Reserve Note", no different than the money you get from a credit card or to purchase a car, that is borrowed from the federal government at interest.

Wait a minute? At interest?

That's right, the Federal Reserve was not only given the monetary power and ability to print money through the Federal Reserve Act, but the power to act as the United State's personal banker, lending money, at interest, to the government with no limit to the amount of money they may print. The Fed is a bank that has the ability to print money, backed by nothing, with no limitation to the amount of currency that can be printed, and loan it to the federal government with instant debt attached.
The creation of the Fed did guarantee that the fluctuations of natural booms and busts would no longer be a factor, however in exchange it gave private interests the ability to structure monetary policy to suit their own gains and ratchet the economy up, or down, as they see fit. But what would these private interests gain from an artificial bust in the economy? Let's take a look at a few examples, shall we?

1914 – 1920

Spurred by the jump into World War I, the Fed increased the national money supply by almost double the original supply by fiat, lending money to the government at a record pace and at interest. This resulted in a huge amount of cash floating around the private sector as the government threw the money into the private sector for war funds, and smaller banks took out the loans to disperse among the general public. In 1920 a bank panic was initiated by the Fed unexpectedly calling in a majority of the Federal Reserve notes that were loaned out, collapsing small banks across the country and creating conditions equal to, if not worse, than the 1907 Panic. Over 400 private banks not part of the Federal Reserve System failed and a consolidation of power under the Federal Reserve and the bankers running it took place. Assets were snapped up at pennies on the dollar and the behemoth grew at an alarming rate.

Under the Federal Reserve Act, Panics are scientifically created. The present panic is the first scientifically created one, worked out as we figure a mathematical equation.

-Congressman Charles Lindbergh

1921 – 1929
Charles Lindbergh's warning went unheeded, as the Fed once again increased the money supply at a rate a little more than half that of the last supply increase and once again resulting in extensive loans throughout the private sector. This time there was a new monster introduced for the roaring twenties, the margin loan. A margin loan is one that is taken out to finance the purchase of primarily financial vehicles such as stocks. The purchaser puts down ten percent of the value of the purchase, while the banks cover the other ninety at interest. This was extremely popular for the American people, who had long wanted to have access to such investment vehicles that had been reserved for only wealthy individuals. Everybody could get into the market now, it was the big thing to do, and everyone was making money. However this proved to be nothing more than robber baron bankers putting as many rats on the ship as they can before they sink it, as 100% of the liability of the stock goes to the purchaser and is not shared by the banks and could be called in at any time with only 24 hour notice, known as a margin call. August 1929, several prominent robber baron bankers quietly sold off their holdings in the market and then, without warning, October 1929, those financers who provided financing for the margin loans to the public began to call them in en mass. The stock market plunged as a rapid sell-off initiated, driving down the price of stock to pennies of their former value. Bank runs were triggered as people struggled to get their monies out of the bank to both avoid another collapse and to pay off the loan amounts that they may not have the ability to cover since their stock was now worthless. This time, the casualty rate of the private banking industry outside of the Federal Reserve System was 16,000 that failed along side whole corporations going belly up as their stocks value literally dropped to a level of toilet paper and even below that. This was an all you can eat buffet for the robber baron bankers from any corner of the world, as whole corporations, banks, and assets could be purchased literally pennies. To make matters worse, the Fed's reaction to the economic collapse was not to expand the money supply further to assist in the recovery, but retracted it to below the supply level prior to 1913, when the Fed was established. Fueled by money woes, credit collapses, and bank runs in a world recovering from World War, and a Germany economy in absolute disarray, (France and Germany had also borrowed a great deal of money from the United States to fund the war) the Great Depression was born.

In response to the crisis, Congressman Louis McFadden began to bring about impeachment proceedings of the Federal Reserve Board, citing the Great Depression and the panic preceding it as "carefully contrived". It was not long after this action; Congressman McFadden was assassinated, poisoned at a banquet prior to fully pushing for impeachment.

The Great Gold Seizure (Heist) of 1933
Under the pretext of ending the depression, an executive order was issued to require all persons in possession of physical gold or gold certificates, the only wealth truly left for the people of the Depression, to deliver this gold to the nearest "Federal Reserve Bank, branch, or agency". Those who did not comply and meet the May 31 deadline faced imprisonment of up to 10 years. Though the motivation for this act was not to end the depression, rather it was a way to squeeze the gold out of the system and make way for the abolishment of the gold standard, making the fiat, US Federal Reserve Note the one true legal form of exchange in the United States, redeemable for no true wealth or solid backing.

Where does the Federal Reserve Note get its value?

The only thing that gives the Federal Reserve Note its value is the amount of notes in the system. As the money supply increases, its value decreases, also known as the inflation tax. As the money supply is restricted, the value of the dollar increases much like a baseball card. The amount of money that floats in the system is controlled by the Fed, who then, in turn, is able to steer the economic system in any direction it wants, therefore, the Fed is able to usurp the power of government and society simply by directing the economy in an undesirable direction. The Federal Reserve Note is little more than a gun, pointed at the head of our government, our rights, and our liberty. A better analogy, however, might be puppet strings directing each individual's life in some way shape or form. This is where true tyranny grows, and this is where true tyranny has become a reality in the United States of America.

"Give me control of a nation's money supply, and I care not who makes its laws"

-Mayer Rothschild, Founder of the Rothschild Banking Dynasty

If you have an agreement, or more imporantly another viewpoint, please feel free to email me and we can take this matter outside...or to the coffee shop, depending on your intentions. I will return next week to wrap up this mini-series on the Fed by explaining the strange increase of "police actions" since the Fed's creation, and how the actions of the Fed of yesteryear could be the same actions of the Fed of the present which could, very well, yield the same consequences. This is the Angry Scotsman, signing off.