…by Jonas E. Alexis & Henry Makow

Henry Makow has a Ph.D. in English Literature from the University of Toronto in 1982 and is the author of best-selling books such as Cruel Hoax: Feminism & New World Order and Illuminati: The Cult that Hijacked the World.

JEA: One entity in the history of United States that has been involved in sophisticated cheating is the Federal Reserve System, which happens to be the third central banking system in the United States and is privately owned.

The Federal Reserve System was signed into law by President Woodrow Wilson on December 23, 1913, and the United States has never been the same with respect to the debt ceiling. The Fed, as economist Murray Rothbard stated, “is accountable to no one; it has no budget; it is subject to no audit; and no Congressional committee knows of, or can truly supervise, its operations.”[1]

Since the Fed is only internally accountable, there are no checks and balances, and all sorts of cheating can happen—and did. The Fed would probably have been closed down long ago if it was known to the public from its inception that it was not really federal.[2]

There are important facts that must be stated here at the outset: the Fed is not federal (it is a private corporation); the Fed can print money out of thin air; the Fed is not accountable to the government; and Founding Fathers like Thomas Jefferson, George Madison, Benjamin Franklin, Andrew Jackson, and Abraham Lincoln would unanimously have abolished it.

Printing money out of thin air is a usurious enterprise, and it goes back to the early centuries. In seventeenth-century England, gold and silver were the primary means of exchange. Since people were not able to easily carry around large stores of gold and silver, a new career cropped up: goldsmithing.

The goldsmiths promised to hold the gold and silver and gave people a receipt for the amount of gold received. This new economic method was thrilling on the surface precisely because people were tired of carrying around and storing huge amounts of gold.

However, there was a huge problem. Goldsmiths realized that only a small amount of people actually came in and demanded their gold, leaving room for the goldsmiths to cheat the system. They began to commit what one writer called “acts of embezzlement.”[3] They printed extra receipts—paper money—and loaned them out and charged interest on them, though the economy couldn’t support it.

This was called fractional reserve banking, which arose in England during the 1660s.[4] Men such as George Washington, John Quincy Adams, Andrew Jackson, Martin van Buren, Henry Harrison, and James K. Polk saw the dangers of this system, so they rejected paper money.[5] The Panic of 1819 convinced Polk that paper money would eventually bring economic collapse.[6]

The early goldsmiths found that they could loan out ten times as much as they actually had in stock, which is an obvious way of cheating in economics. Banks in the United States do the same thing. Modern economists and capitalists such as Thomas Sowell are very careful to not label this system cheating, instead calling it “vulnerable.”[7] Milton Friedman has written an entire book on the history of money in the United States, and the notion that fractional reserve banking could be immoral is not mentioned once. On the contrary, Milton implies that fractional reserve banking could be legitimate.[8]

From the birth of paper money to the economic crisis in 2008, the goldsmiths, who gradually evolved into money changers and later usurious bankers, made huge profits off the poor and needy, and played an influential role in the economic collapse of any society. From 1642 to 1649, the goldsmiths were the key players who financed the wars in England. By 1694, the Bank of England was created. Ever since, England has been in debt.

The same thing happened in America in 1690 when paper money was introduced in Massachusetts. In order to pay the soldiers, the government borrowed a huge amount of money from Boston merchants, putting the state into debt; the same thing happened in 1692. By 1711, many observers saw that paper money was killing the economy.[9]

Yet those failed experiments did not stop the spread of paper money in every colony, except Virginia.[10] It continued to create “a boom-bust economy.” “When new paper money was injected into the economy,” writes economist and historian Rothbard, “an inflationary boom would result, to be followed by a deflationary depression when the paper money supply contracted.”[11]

So, is paper money the problem? Absolutely not. The oligarchs, the banksters, the vipers, and the Khazarian Mafia want to tell us that economics is like physics, and that moral virtues have nothing to do with it. If you want the economy to prosper, they argue, then let it run by itself. In other words, laissez-faire economics.

As E. Michael Jones shows in his magnum opus Barren Metal: A History of Capitalism as the Conflict Between Labor and Usury, there is always a moral dimension in economics, and removing that moral aspect is a recipe for disaster. That’s why people like Soros can perpetuate claims like his is an “amoral” person when it comes to economic business.

Henry Makow

“I believe that banking institutions are more dangerous to our liberties than standing armies.” —Thomas Jefferson

In November 1949, Eustace Mullins, 25, was a researcher in Washington DC when friends invited him to visit the famous American poet Ezra Pound, who was confined at St. Elizabeth’s Mental Hospital and listed as a “political prisoner.”

A leading figure in Modern English literature, Pound was the editor and critic who introduced the world to James Joyce, W.B. Yeats and T.S. Eliot. During the Second World War, he was charged with treason for broadcasts on Rome Radio that questioned the motives behind America’s involvement.

Pound commissioned Mullins to examine the influence of the banking establishment on U.S. policy. Mullins spent every morning for two years in the Library of Congress and met with Pound every afternoon.

The resulting manuscript, “The Secrets of the Federal Reserve” proved too hot for any American publisher to handle. Nineteen rejected it. One said, “you’ll never get this published in New York.” When it finally appeared in Germany in 1955, the U.S. Military Government confiscated all 10,000 copies and burned them.

Essentially it paints a picture of the world, and the role of the United States, which is radically different from the one we are given in school or in the media.

“Notwithstanding the war of independence against England,” writes Mullins, “we remained an economic and financial colony of Great Britain.” Between 1865 and 1913, he says London bankers led by the Rothschilds used agents such as J.P. Morgan and J.D. Rockefeller to gain control of American industry and organize it into cartels.

Where did these bankers get the money? For over 200 years, European bankers have been able to draw on the credit of their host countries to print it!

In the Seventeenth Century, the moneylenders and the aristocracy made a pact. If the king would make paper currency a liability of the state, the moneylenders would print as much as he liked! Thus the Banks of England, France and the Reichsbank came into being but they were all private corporations and remain so today.

According to this nefarious pact, the moneylenders got to charge interest on assets they created out of thin air. The aristocracy all took shares in the central banks plus they got to finance a burgeoning government and to wage costly wars.

This piece of chicanery is at the heart what plagues humanity.

The bankers have a vested interest in the state (i.e. the people) incurring as much debt as possible. They are behind the Marxist, socialist and liberal movements which call for big government and social spending. They are behind the catastrophic wars of the last century. The Warburgs financed the Bolshevik Revolution. Prescott Bush (W’s grandfather) was head of Brown Brothers Harriman, which financed the construction of the Nazi war machine.

Naturally if you can create money out of thin air, your first instinct is to buy tangible assets with it. There is a powerful impulse to use debt to control nations and take over their real assets. This is the essence of the so-called Third World Debt crisis. Dedicated to owning all wealth and enslaving humanity, an irresistible vampire has been unleashed upon the world

Much of Mullins book is devoted to the subterfuge by which the United States was drawn into its lethal embrace. In 1913, the Owen-Glass Bill gave mostly foreign-controlled banks (posing as “the Federal Reserve”) the right to create currency based on the credit of the United States government and to charge it interest for doing it!

To accomplish this, the bankers had to rig the election of 1913 in order to get Woodrow Wilson elected. Then their stooges in Congress passed the legislation on December 22 after their opponents had gone home for Christmas.

“This act establishes the most gigantic trust [cartel] on earth,” Congressman Charles Lindbergh said at the time. “When the President signs this bill; the invisible government by the Monetary Power will be legalized. The people may not know it immediately but the day of reckoning is only a few years removed.”

Mullins explains that the legislation passed just in time for the American people to finance World War One. After maintaining standing armies for 50 years, European powers no longer could afford the luxury of another war. But the U.S. was relatively debt free and made the whole thing possible.

What would WWI have been without Germany? Apparently Germany was not self-sufficient in food and would have had to sit out this war. In the nick of time, the bankers organized something called “The Belgium Relief Committee” which channeled billions of dollars worth of U.S. meat and potatoes not to Belgium but to Germany. When Edith Cavell, an American working in a Belgium hospital pointed this out, British intelligence had the Germans arrest and execute her.

Mullins makes a convincing case that every U.S. President since Wilson has been a lackey of the bankers. J.F. Kennedy was assassinated because he started to print his own U.S. government-backed currency. This is also the transgression that led to the murders of Presidents Abraham Lincoln and James Garfield.

Last year alone, the American people paid $360 billion in interest to the bankers. To maintain this massive fraud, the bankers enforce an iron grip on the political and cultural organs of the nation. According to Mullins, “The New York Times” is owned by the Kuhn Loeb while “The Washington Post” is owned by Lazard Freres. In Europe the Rothschilds own Reuters as well as the French and German news services.

I presume US publishers, TV networks and movie producers are similarly beholden. Rockefellers, Carnegies and the Fords endow the nations’ libraries and universities. Journalists and professors dutifully parrot fantasies about democracy and freedom. Mind control laboratories run by the CIA and the British army (TheTavistock Institute) dream up ways to manipulate and undermine the population. The psychological sterilization of the human female (“feminism”) is an example.

The “War on Terror” is part of the banking cabal’s plan to consolidate its grip on humanity in a friendly (or not so friendly) fascist “New World Order.” They want to secure their political, economic and social grip on the obstreperous Muslim world, as well as build up a security apparatus in case the docile populations of the West become restive.

Well, at least the cosmic battle between Good and Evil is out in the open at last!

•  [1] S. C. Mooney, Usury: Destroyer of Nations (Warsaw, OH: Theopolis, 1988), 71.
• [2] Murray N. Rothbard, The Case Against the Fed (Auburn, AL: Ludwig von Mises Institutes, 1994), 3.
• [3] Mooney, Usury, 77.
• [4] See Detlev S. Schlichter, Paper Money Collapse: The Folly of Elastic Money and the
• Coming Monetary Breakdown (New Jersey: Wiley & Sons, 2011), chapter 2.
• [5] Rothbard, History of Money, 56.
• [6] See Schlichter, Paper Money Collapse, chapter 2.
• [7] Rothbard, History of Money, 91
• [8] Thomas Sowell, Basic Economics (New York: Basic Books, 2014), 405.
• [9] Milton Friedman, A Monetary History of the United States , 1867-1960 (Princeton: Princeton University Press, 1993), 17, 21, 29-30.
• [10] Rothbard, History of Money, 52-53.
• [11] Ibid., 53.

Jonas E. Alexis, Senior Editor

Jonas E. Alexis has degrees in mathematics and philosophy. He studied education at the graduate level. His main interests include U.S. foreign policy, the history of the Israel/Palestine conflict, and the history of ideas. He is the author of the book, Kevin MacDonald’s Metaphysical Failure: A Philosophical, Historical, and Moral Critique of Evolutionary Psychology, Sociobiology, and Identity Politics. He teaches mathematics in South Korea.

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