Whether Or Not We Like It
Dec 23, 2008
In the past, I've written papers
where the following quotation was included at the end of the
treatise as an "exclamation point":
shall have World Government, whether or not we like it. The only
question is whether World Government will be achieved by conquest
or consent." -James Paul Warburg, whose family co-founded
the Federal Reserve - while speaking before the United States
Senate, February 17, 1950
Today, I feel that I've finally
got it "the right way around" with this important quote
- where it should be - at the beginning of, and in fact the subject
of, a treatise of its own.
First, for the uninformed,
in America the name "Warburg" is and always has been
synonymous with Central Banking. The Warburg family name is inextricably
linked to 'old world banking' in Europe as well as being one
of the prime architects of the formulation and passage of the
Act in 1913;
Warburg became known as a persuasive advocate of central banking
in America, in 1907 publishing the pamphlets "Defects and
Needs of Our Banking System" and "A Plan for A Modified
Central Bank". His efforts were successful in 1913 with
the founding of the Federal Reserve System. He was appointed
a member of the first Federal Reserve Board by President Woodrow
Wilson, serving until 1918."
Second, after careful analysis
and consideration, it is very apparent that the dogmatic pursuit
to inflict private, for profit, Central Banking upon the masses
is consistent with [if not synonymous with] the clearly stated
goal of Paul Warburg; that of World Government.
A Deeper Look At Central Banking Through
The Private U.S. Federal Reserve
When we stop to consider that
the Federal Reserve is no more "federal" than Federal
Express and they have no "reserves" - owing to the
fact that they create money 'out of thin air' - the name "Federal
Reserve" itself is a misnomer and purposely given this moniker
as a deceptive means; to make its creation more palatable to
lawmakers since the framers of the U.S. Constitution [and the
spirit of the document itself] were dead-set against the institution
of Central Banking.
It would appear that the Constitution's
framers deep distrust of Central Banking was well founded too
- since the stated goal of its chief advocates is to usurp both
the Declaration of Independence and the Constitution itself,
in pursuit of World Government.
The means by which Central
Banking exerts control over the populace is through their monopoly
power in the issuance of irredeemable fiat currency [debt] for
The history of irredeemable
fiat currencies clearly illustrates that the compounding of accumulated
debt always denigrates into bondage and ultimately to the conquest
of complete debt-slavery.
In a recent interview between
two notable market commentators, Dr. Robert McHugh, a former
to Jay Taylor exactly how this insidious process is enacted
on a naïve and unsuspecting populace;
Taylor: I was greatly impressed
by an insightful article I found back in 2005 on the Internet
titled, "The Feds Are at It Again. What Do They Fear?"
It was written by Dr. Robert McHugh, who was, just as I was,
once a banker before he became a newsletter writer. Unlike your
writer, who worked for well-established foreign multinational
banks in New York, Robert actually founded a local community
bank in Eastern Pennsylvania that ultimately became known as
Main StreetBancorp. Talk about a "ground floor"
opportunity; as one of the founders of the bank, Robert was one
of 13 employees when it started. From zero deposits, the bank
grew to $3 billion in deposits and had 500 employees when management
chose to sell out in 2000 because they believed the economy looked
like it was ready to head south. [emphasis mine]
McHugh, after acknowledging
that government manipulates metals markets, goes on to explain,
McHUGH: Well, I'm a renegade
banker. I have sat in at meetings where the Federal Reserve
came in, sat down and "said stop lending, we think there
is a recession coming." The very fact that we were told
to stop lending caused a recession. That happened in 1990-1991.
Word of that finally hit the mainstream media and one of the
first acts Clinton did was that he grabbed the regulators by
the throats and said, "why don't you let the bankers start
lending again." The next time they came in, they told us
to start lending.
that kind of power. They decide when recessions and depressions
happen. They decide when hyperinflation happens.
They can do it through a lot of different tools. The hidden one
is the regulatory agencies where they come in and intimidate
bankers and tell them what to do. They have a lot of power. They
can have the boards of directors of banks thrown in jail. They
can have people fired. They use those powers behind the scenes,
nobody knows about them. As a banker, I have seen the dark side
of the Fed.
I have watched them rate good loans as bad loans, and charge
off loans when in fact, customers were fine, the loans were fine.
We are in a bit of that environment again now. What happens is,
the last thing these government agencies want to happen is that
they get called on the carpet before Congress. So they become
overzealous, overcautious at precisely the wrong times. There
is a lot of action by the Fed that messes with the normal business
free market cycles that would prevent excesses. A lot of the
publicity in today's market is that there wasn't enough government
intervention, there wasn't enough regulation and that is true
too, they got too far in one extreme, but they create imbalances
and create these problems by overacting as well. [emphasis mine]
It seems that
McHugh isn't the only market commentator to espouse such an informed,
but negative view of the Fed. In a recent treatise written by
Walter Williams, Central
Banks Are Villains, published in the Pittsburg Tribune-Review
- Williams helped focus a spotlight on the true workings of the
justifications for Federal Reserve Act of 1913 was to prevent
bank failure and maintain price stability. Simple before-and-after
analysis demonstrates that the Federal Reserve Bank has been
In the century before the Federal Reserve Act, wholesale prices
fell by 6 percent; in the century after they rose by 1,300 percent.
Maximum bank failures in one year before 1913 were 496 and afterward,
4,400. During the 1930s, inept money-supply management by the
Federal Reserve Bank was partially responsible for both the depth
and duration of the Great Depression.
the case, who is responsible for inflation? It's not you or
I because if we privately increased the supply of money to finance
profligate spending, we would be charged with counterfeiting
and go to prison. The Federal Reserve Bank, our central bank,
is the only entity legally permitted to increase the supply of
money, to finance Congress' profligate spending. The Federal
Reserve Bank is supposed to be independent but it typically accommodates
the wishes of Congress and the White House.
Central banks are villains in most countries; ours is just not
as bad as others. In 1946, Hungary's central bank gave it the
world's highest inflation rate. Prices doubled every 16 hours
creating an annual inflation rate of 13 quadrillion percent.
Last October, Zimbabwe's central bank produced history's second-highest
rate of inflation. Prices doubled every 25 hours, giving it an
annual inflation rate of 80 billion percent. By comparison, Germany's
inflation rate, which brought about the social disruption responsible
for Hitler's rise to power, was a mere 30,000 percent that saw
prices doubling every four days. You say, "Williams, that
couldn't happen here." Except during the Revolutionary War
and the War of 1861, our inflation has never exceeded 20 percent,
but keep in mind that any hyperinflation was once 20 percent."
Is A Central Bank Necessary?
the dangers posed by central banks, we might ask whether our
country needs the Federal Reserve Bank. Whenever I'm told that
we need this or that government program, I always ask what we
did before. It turns out that we did without a central bank from
1836, when President Andrew Jackson closed the Second Bank of
the United States, to 1913 when the Federal Reserve Act was written.
During that interval, we prospered and became one of the world's
major economic powers..."
Enforcement and the Iron Triangle
So how does one go about perpetuating
such a flawed regime? The answer to this question becomes apparent
when one gains an understanding of the relationship between Central
Banking and the Military Industrial Complex [MIC]. Because all
wars are fought with "borrowed money" or are debt financed
- Central Banking and the MIC make perfect bed-fellows and exert
enormous influence on public policy:
To understand the insidious
nature of this relationship, we need look no further than President
Eisenhower's Jan. 17, 1961 farewell
a hostile ideology -- global in scope, atheistic in character,
ruthless in purpose, and insidious in method. Unhappily the danger
is poses promises to be of indefinite duration. To meet it successfully,
there is called for, not so much the emotional and transitory
sacrifices of crisis, but rather those which enable us to carry
forward steadily, surely, and without complaint the burdens of
a prolonged and complex struggle -- with liberty the stake. Only
thus shall we remain, despite every provocation, on our charted
course toward permanent peace and human betterment...
latest of our world conflicts, the United States had no armaments
industry. American makers of plowshares could, with time and
as required, make swords as well. But now we can no longer risk
emergency improvisation of national defense; we have been compelled
to create a permanent armaments industry of vast proportions.
Added to this, three and a half million men and women are directly
engaged in the defense establishment. We annually spend on military
security more than the net income of all United States corporations...
...In the councils
of government, we must guard against the acquisition of unwarranted
influence, whether sought or unsought, by the military industrial
complex. The potential for the disastrous rise of misplaced power
exists and will persist...
The military-industrial complex
has no greater champion than the parasitic institution of banking,
and for painfully obvious reasons; the staggering amount of money
spent on this edifice - more than the net income of ALL
U.S. corporations - is exclusively BORROWED.
Forever mortgaging our children's
futures further entrenches the blood-sucking dominance and control
that finance exerts over the productive or real economy until
finally, left unchecked, the parasite kills the host. [more for
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