Last November 5, 2010, a conference was held at Jekyll Island, off the coast of Georgia, -sponsored by the Federal Reserve Bank of Atlanta and Rutgers University- to commemorate the 100th anniversary of the drafting of the U.S. Federal Reserve bill.
Three years after that “historical” day, in 1913 (many claim that unconstitutionally during the Christmas recess of Congress), President Woodrow Wilson finally signed the Federal Reserve Act. 1
A few years later, President Wilson would regret having followed the advice of his personal counselor, "Colonel" Edward Mendel House.1
Wilson's had realized too late that the “internationalists" ideas of the "Colonel" coincided too much with the international bankers' interests; so much, that Wilson complained of having given the country to these. 1
The signature of the Fed Act had gave culmination to over a century of struggle among American politicians and representatives of international banking, led by the Rothschild clan, to establish a central bank in America in order to control its economy.2
Today, there are fingers pointing at the Federal Reserve as the instrument of an alleged international financial elite -led, among others, by the Rockefeller and Rothschild-in order to controll the U.S. economy, currency, banking industry and government ., and thus, impose its supremacy over the rest of the planet.
However, too much water has passed under the bridge.
Do the same interests still control the Fed?
This is a matter of high importance for democracy and the rule of law, the founding principles of this nation, and the life of all U.S. citizens and the world.
To find those who control the Fed, we must understand its functioning, which, though highly complex, can be summarized in a nutshell.
The Federal Reserve System consists of 12 district banks, all national banks and a segment of the state banks.
The Fed is the bank of banks, and the U.S. government's bank, the most openhanded consumer and the greatest debtor in the world.
The Treasury has a checking account at the Federal Reserve Bank of New York. All profits from federal taxes and other payments to the government are managed through this account.
The Fed sells and pays off government securities such as Treasury savings bonds and notes.
When the government is short of funds, the Treasury issues bonds and delivers them to bond dealers, which auction them off.
When the Fed wants to "expand the money supply" (create money), it steps in and buys bonds from these dealers with newly-issued dollars.
When Federal Reserve was created as a private trust, the government surrendered to the Fed its prerogative of printing money and distributing it to financial institutions, a government exclusive privilege.
The money printed by the Fed in order to buy government bonds increases the amount of currency. In this way, Fed’s activity is essentially inflationist: printing of new money lowers dollar’s value and, therefore, increases inflation.
The manipulation of dollar’s value by the Fed policies affects not only the American consumer. They also impact in exchange rates and economies all over the planet. This is because, as we know, the dollar is the universal currency and reserve.
But this is not the most worrisome.
The new money created by the Fed to buy government bonds is produced through an act of magic: they just type a few numbers on a computer screen into the Treasury bank account.5
The Federal Reserve's maneuvers to "create" money are called "open market operations" because the Fed buys the bonds issued by the Treasure at the brokers' "open market".3
The government debt bonds become the "reserves" that the international banking community uses to support its lending. Thus, all operations and bank interest of the world are closely intertwined with the policies of the Fed.
Because of how the Federal Reserve works, the value of money isn't based on precious metals value nor other collateral but only in the "credit" the U.S. government to pay its debts.
If the U.S. government is about to lose its credit, this means that government bonds and the dollar will lost their value as currency and bank reserves, a real catastrophe for the global financial world.
The worst thing is that the very fabric of profits for the banks is another sleight movement known as loans for "fractional reserve."
The "fractional reserve" lending consist in lending the same reserves many times over, further expanding the money supply,(i.e., not backed by any collateral). 5
The Federal Reserve "… has the power to determine… the size of foreign exchange reserves abroad… In a practical sense, the Federal Reserve System is the lender of last resort to the international banking system, and the determinant of the dollar value of world reserves."7
Federal Reserve also has the ability to regulate bank interest rates.
If interest rates are reduced, there will be more demand for loans and the economy will "warm up". If the rates are increased, there will be less borrowing and therefore the economy will "cool down".3
Moreover, currently, through institutions such as the Automated Clearing House or ACH8, the Society for Worldwide Interbank Financial Telecommunication or SWIFT9 and others, the Fed monitors electronic banking around the world, which today is literally all.
In short, the Fed has more power and influence over the economy and the live of U.S. and world than any other government entity or not, whether American or foreign.
The Federal Reserve is, therefore, as we had said, the most powerful institution world.3
This means that whoever controls the Federal Reserve controls the planet.
But who actually dominate the Fed?
One of the great secrets of the Federal Reserve for nearly a century was its private ownership character, nongovernmental, quite the opposite of what its name suggests.
Such secret began to be public only in the past five years, almost a century after the creation of the Fed, thanks to the free flow of information over the Internet.
However, the names of the real owners of the Federal Reserve remain one of the best kept mysteries of the planet.
One provision of the Federal Reserve Act prohibits revealing the identity of its shareholders.
There is great controversy about the real owners of the Fed.
Many critics of the Federal Reserve say that it is in the hands, not just off private, but foreign interests. And that these foreign interests use the Fed as an instrument of pressure on the U.S. government in the sense of their interests on world domination.
Those who drafted the Federal Reserve bill and lobbied in behalf of the Fed Act early last century left no room for doubts. But a century has passed; hence there is a need to check or rebuff this accusation.
Edward Flaherty, Ph.D. in Economics from the College of Charleston11, one of the most fervent defenders of the Federal Reserve, has devoted many efforts to discredit the accusations of the opposition to it.
Flaherty attacks are aimed particularly against Edward Griffin, author of "The Creature from Jekyll Island"12, Eustace Mullins, who wrote "The Secrets of the Federal Reserve"13, and Gary H Kah, author of "On the Road to Global Occupation."14
Flaherty flatly denies their accusations that the Federal Reserve Act was passed in an illegal and unconstitutional way and that the principal shareholders of the Fed (the main owners) are foreigners.15
According to critics of the Federal Reserve, by the way the system was designed by its founder, who controls the Federal Reserve Bank of New York, controls the entire system.16
Each of the twelve Federal Reserve Banks is organized into a corporation whose shares are sold to commercial banks and thrifts operating in the Bank district.
Shareholders elect six of the nine directors of the regional board of Federal Reserve Bank and its presidents.
Mullins says that the first eight shareholders of the Federal Reserve of New York were, in order from highest to lowest since 1983, the Citibank, Chase Manhattan, Morgan Guaranty Trust, Chemical Bank, Hanover Manufacturers Trust, Bankers Trust Company, National Bank North America, and the Bank of New York.17
According to Mullins, overall, these banks control 63% of the outstanding shares of the New York Fed.
Many of these banks, says Mullins, are owned by a dozen European banks, mostly British, in particular, of the Rothschild banking dynasty. Through their American agents, they are able to select the board of the New York Fed and direct U.S. monetary policy.17
Flaherty contends that the source of Mullins’ information (the Federal Reserve Bulletin, according to this) over the shareholders of the New York Federal Reserve cannot be verified, as this or any other periodical of the Federal Reserve has never included any information on the shareholders. 15
Moreover, Flaherty is right to say that the investigation of the shareholders of the Fed is very difficult because the Federal Reserve banks are not publicly traded corporations and, therefore, the Securities and Exchange Commission cannot require the publication of a list of its main shareholders.15
Apart from the conjecture on foreign ownership, Flaherty criticizes the Mullins' argument that New York banks that hold a majority of the shares of the Federal Reserve Bank of New York can choose its board and its chairman. In this way, these banks, and thus, the London connection, according to Mullins, have the control over the operations of the Fed and U.S. monetary policy 15
Flaherty objects this statement arguing that each commercial bank receives only one vote, regardless of its size, unlike most corporate voting structures in which the number of votes is tied to the number of shares that a person has.15
If the Federal Reserve district of New York contains more than 1,000 member banks, Flaherty argues that it is highly unlikely that the largest and most powerful banks could force many of the smaller ones to vote in a particular way.15
Controlling the votes of a majority of member banks, as properly thinks Flaherty, would mean acquiring a majority stake in about 500 member banks of the District of New York.15
To gain control over the Federal Reserve, Flaherty estimated that is required an outlay of hundreds of billions of dollars, which encourages Flaherty to think that, surely, there is a cheaper way for the global domination.15
Many critics of the Federal Reserve believe that yes, that the Anglo-American and global banking elite (with the Rockefellers and the Rothschilds at their top) has enough money to make such an investment and more.
If you study history, you may discover that this, undoubtedly, despite its enormous cost, would be the cheapest way to world domination.
But Flaherty is right about the difficulties to know the main shareholders of the Federal Reserve.
However, the knowledge of the main shareholders of the Federal Reserve can be discovered indirectly just looking for who really controls it.
In that sense, there is an interesting report of the Congressional Committee on Banking, Currency and Housing of 1976. Among its members, we found the then newly elected Congressman Ron Paul, one of the main enemies of the Fed and the Tea Party inspirator 19
The study is entitled "Federal Reserve Directors: A Study of Corporate and Banking influence".20
The president of this congressional committee, the Democrat Rep. Henry Reuss of Wisconsin, writes in the foreword that this is a staff study of the corporate, banking and trade association relationships of the directors of the 12 Federal Reserve Banks. .21
The reason for such a study, admits Reuss, lies in the Committee concern for many years about the influence of private interests over the essentially public responsibilities of the Federal Reserve System. 21
The dependent nature of the district boards, continues Reuss, affects the public interest across a broad spectrum, from monetary policy to banking regulation.21
The tables in the report clearly show that significant segments of corporate power and banking have broad channels of communication and influence with the Federal Reserve Bank of New York, undoubtedly the most important of the district banks, with important roles in politics monetary and international operations around the Federal Reserve System.22
The report says that: "At the national level, some of the activities of the Federal Reserve directors are masked behind their corporate shields, and it is often difficult to distinguish the lobbying generated by the Federal Reserve banks from that of the corporate-banking lobby." 22
Logic is that, given the weight and power of the Federal Reserve System on the government, the nation and the world at large, it should be subject to regular audits from various government agencies.
Successive presidents and administrations of the Federal Reserve have acted with impunity without supervision or control, been completely unknown their internal and external activities.
The current Federal Reserve chairman, Ben Bernanke, on numerous occasions before Congress, has refused to answer key questions on domestic activity and the fate of Federal Reserve loans.23
In this regard the congressional committee’s report tells us that "The battle of last year (1975) on proposals to require regular audits of the activities of the Federal Reserve by the General Accounting Office is a good example of the weight of influence Directors of the Federal Reserve on legislative matters ".22
Throughout 1975, directors of Federal Reserve district banks flooded the Congress with letters urging the defeat of the audit legislation from General Accounting Office. 22
For its part, the leadership of the Federal Reserve had mobilized all bank managers and private corporations throughout the length and breadth of the country urging them to lead lobbyists’ campaigns against the audit.24
One of the lobbying group that includes the biggest of the big corporations in this country, where the directors of the Federal Reserve maintained a strong membership, is the Business Roundtable.24
In 1973, the Business Roundtable-at the request of Dr. Burns-wired its members and asked them to help repel the bill. When lobbying pressure mounted against the new audit proposal in 1975, a study was conducted by Wright Patman (the former chairman of the CBCH) which revealed the close relationship between the private lobbying organization and our supposedly "public" Federal Reserve System.25
Another organization of big business, the Chamber of Commerce of the United States, has strong connections with the Federal Reserve.
The House, which often lobbies on legislative issues of banking and the Federal Reserve, has a policy committee on banking, monetary and fiscal policies. Thirty-one of its members are officers or directors of banks and eight have connections with directors Federal Reserve System.25
While the law limits banks' direct participation in the councils of the district banks, they actually infiltrate all levels of the system.
Through the district boards and the combined branches, one in five jobs for not bankers and public members end up in bankers' hands. 25
In general, commercial banks hold the positions supposedly "liberated" by their "ex-officials" who go on to work at the Fed so that they can occupy them again as soon as they complete their "public" service. In this regard, the Congress Committee report gives lots of examples.26
The excessive input by special interests would be a serious problem in any public agency, but the situation becomes more serious since the Federal Reserve banks assume greater regulatory powers.27
While Corporate America has wide representation—through director interlocks—with all twelve banks in the Federal Reserve System, analysis of each district bank and cross-checking one district bank with the others reveals not only the narrow pool of talent but the "club" nature of the system.28
This "club” approach leads the Federal Reserve to consistently dip into the same pools—the same companies, the same universities, the same bank holding companies—to fill directorships.28
The report of the Congressional CBCH ends with the bitter acknowledgement that "the Federal Reserve system is dominated by a very small universe of private institutions" and that ... " the directors of the Federal Reserve are clearly representative of a small elite group which dominates much of the economic life of this nation.”28
Anyway, the 1976 congressional report does not explicitly say who the main shareholders of the Federal Reserve are; however, by simple association, it is easy to discover.
This indirectly tells us that the main shareholders, the owners of the Federal Reserve, are none other than the dome of the "club" of Corporate America to which the report relates.
Although today as yesterday, the Fed tries to evade transparency, I don't think it's very difficult to follow the clues leading to the Fed's foreign connection.
The Congressional report acknowledges that the bank District of New York Federal Reserve is the most important and influential of the system.24
Recall that Mullins said that who controls the Fed bank in New York, dominates the system, thesis refused by Flaherty.
David Rockefeller inherited the fortune and influence of his father, John D. Rockefeller Junior, being the head of the clan to the death of all his older brothers.
While serving as director class Fed Bank of New York, David not only was in charge of major corporations and national and international banking organizations. Among these was the Chase Manhattan Bank, across the street from the Fed Bank of New York, and various private and corporate organizations as the Chase International Advisory Committee (IAC) and the New York Clearing House, among others. This surely invalidated him by law to be Class A director of the Federal Reserve. 31
Simultaneously, David was head of the most important institutions of the political, aristocratic, banking, corporate, cultural and academic world elite as the Council on Foreign Relations (CFR), the Bilderberg Club, Trilateral Commission, among others.
David himself has repeatedly expressed its global vocation by saying:
"... The world is more sophisticated and prepared to march towards a world
government. The supranational sovereignty of an intellectual elite and world
bankers is surely preferable to the national auto determination practiced in
"Some even believe we are part of a secret cabal working
against the best interests of the United States, characterizing my family and me
as 'internationalists' and of conspiring with others around the world to build a
more integrated global political and economic structure -- one world, if you
will. If that's the charge, I stand guilty, and I am proud of it."33
And this brings us back to the long and intimate relationship between David Rockefeller and Fidel Castro.
It seems that, as we shall see in subsequent articles, Fidel Castro is a key player in the international political chess carried out for the tremendous work of David Rockefeller in his capacity of leader of the "internationalist" financial elite.
1.- View previous article on this blog on Wednesday, March 16, 2011 entitled THE CUBAN CONSPIRACY (SIX) R+R=RF (ROCKEFELLER + ROTHSCHILD = FEDERAL RESERVE).
2.- View previous article on this blog on Tuesday, February 1, 2011 entitled THE CUBAN CONSPIRACY (FIVE) THE ROTHSCHILD AND THE CENTRAL BANC OF AMERICA.
3.-Federal Reserve Tutorial http://www.investopedia.com/university/thefed/
4--http://www.prisonplanet.com/bernanke-arrogantly-refuses-to-disclose-which-banks-took-loans.html y http://www.youtube.com/watch?v=dX2qvbznGKM
5.-Who Owns The Federal Reserve? by Ellen Brown http://www.globalresearch.ca/index.php?context=va&aid=10489
7.-Mundell, Robert A., International Monetary Options, Cato Journal, vol. 3, no. 1, Spring 1983, p.191. Citado en http://www.house.gov/jec/imf/lolr.htm
17.- http://www.rebelnews.org/downloads/Federal-reserve.pdf p. 179
18.-http://www.rebelnews.org/downloads/Federal-reserve.pdf, p. 47-48
20.- FEDERAL RESERVE DIRECTORS: A STUDY OF CORPORATE AND BANKING INFLUENCE http://adabyron.net/FederalReserveDirectors.pdf
21. Ibídem, p. III
22.- Ibídem, p 56
23.- http://www.prisonplanet.com/bernanke-arrogantly-refuses-to-disclose-which-banks-took-loans.html y http://www.youtube.com/watch?v=dX2qvbznGKM
24. FEDERAL RESERVE DIRECTORS:, Ibídem, p. 56-57
25.- FEDERAL RESERVE DIRECTORS, Ibídem. p. 57
26.- FEDERAL RESERVE DIRECTORS, Ibídem. p. 58.
27.- FEDERAL RESERVE DIRECTORS, Ibídem. p. 59-60
28.- FEDERAL RESERVE DIRECTORS, Ibídem. p 120
29.- Eustace Mullins “Secrets Of The Federal Reserve” http://www.rebelnews.org/downloads/Federal-reserve.pdf, p. 40
30.- FEDERAL RESERVE DIRECTORS, Ibídem. p 9
32.- David Rockefeller (1991 Speech to the Trilateral Commission). http://luntworld.blogspot.com/2008/01/david-rockefeller-quote-for-january-10.html
33.- David Rockefeller, Memoirs, Random House, 2002, p. 405
35. .- View previous article on this blog on Tuesday, November 2, 2010entitled THE CUBAN CONSPIRACY (THREE) THE ROCKEFELLERS