Wednesday, January 21, 2015

Secret Meeting, Too Big to Fail & Too Powerful to Prosecute

What would you think if a CNN Breaking News announcement interrupted the regular program and a reporter appeared announcing that the US Assistant Secretary of the Treasury, a US Senator, and five high level officers of the largest banks in America had been discovered secretly meeting to create a system in which private banks would take control of the entire monetary system of the USA?

In November 1910, CNN did not exist, but the meeting described above took place. The men traveled by private train to a private resort owned by J. P. Morgan at Jekyll Island off the Georgia coast. Those present were:[i]

(1) Frank Vanderlip, President of Rockefeller’s National City Bank of New York.

(2) Henry P. Davidson, senior partner of J. P. Morgan & Co.

(3) Charles D. Norton, President of Morgan-controlled First National Bank of New York.

(4) Benjamin Strong, Vice President of Morgan-controlled Bankers Trust.

(5) Paul Warburg, a German immigrant and senior partner of Kuhn Loeb & Co.

(6) A. Platt Anderson, Assistant Secretary of the Treasury of the United States.

(7) Senator Nelson Aldrich, chairman of the Senate Finance Committee, and father-in-law of John D. Rockefeller, Jr.

Warburg’s plan proposed the creation of the Federal Reserve Association, an association with twelve member banks whose stock would be owned by private stockholders. The Federal Reserve Association would control the nation’s money and credit; it would be a bank of issue, meaning the private bankers would be able to create currency or money at will, and it would finance the Government by securing credit in times of war. Senator Aldrich later admitted the agenda in a magazine article:

Before passage of this Act, the New York Bankers could only dominate the reserves of New York. Now we are able to dominate bank reserves of the entire country.[ii]

Contrary to what many Americans believe -- the Federal Reserve System is not a government agency. It is a private corporation completely owned by commercial banks. What do you believe is their top priority – making the most money or increasing the quality of life for the most Americans?

The one thing I can’t figure out is why so many Americans have bought into the mantra – “the less government regulation the better off America will be.” Who do you think benefits the most from less regulation? Could it be –

Banks that are too big to fail!
Bankers that are too powerful to prosecute!

Or, as US Attorney General Eric Holder said:

"I am concerned that the size of some of these institutions becomes so large that it does become difficult for us to prosecute them when we are hit with indications that if you do prosecute, if you do bring a criminal charge, it will have a negative impact on the national economy, perhaps even the world economy."[iii]

Now that’s the ideal situation for an elite few – but I don’t think it is what the Founding Fathers had in mind when they created our great nation. Tocqueville predicted that if American citizens failed to voluntarily associate together to achieve great things by participating in the governing process, the following will happen:

(1) Wealthy and powerful men would come to control the governing process and use it to increase their power and wealth.

(2) Individuals will become powerless because they dependent on wealthy and powerful individuals.

(3) Freedom and liberty will be in great jeopardy and the existence of the nation will be endangered.

Cogitate on that awhile!
The Country Cogitator

Banking 101


How important is money to most people? It is clearly a basic requirement for life and most people spend the majority of their lives working to acquire it. So, what do you know about money itself? Do you know the answers to these questions?

(1) What is money?

(2) Where does it come from?

(3) Who makes it?

Wouldn’t you think that people who spend so much time and effort trying to acquire money would make it their business to know as much as possible about money? How many courses about money did you take in high school and college? Doesn’t that seem strange?

The reason the masses aren’t taught about money and the banking system is probably because those who control the banking and monetary systems do not want them to know what they have done in the past and what they are doing now. We are about to change things and let the genie out of the box.

What is money?

The answer we are going to give for this question is for what money was before the 1970s. There have been significant changes since then.

(1) commodity money – A commodity is something useful or valued.[i] It is something that can be traded for something else. In the history of mankind, a wide range of commodities have served as money: salt, hides, cattle, slaves, tobacco, sugar, metals, silver, and gold, to name a few. At any moment in time, there are likely to be several commodities that strive for the position of being the universal standard for pricing (dollars, ounces of gold, number of cows, etc.).[ii] 

(2) fiat money -- Fiat money replaces commodity money with valueless and inconvertible symbols issued by the state. It ultimately rests on social trust in the ability of the state to enforce payments in this form of money; it competes with commodity money and restricts the presence of the latter in the sphere of exchange; it also provides a standard unit of account for prices. Fiat money can take several forms varying from cheap metallic coin, to crude paper monies with forced circulation, to sophisticated legal tender issued by central banks and backed by state debt.[iii]

(3) credit money -- Credit money is a privately issued form of money that results from credit relations among agents of circulation. It is inherently a promise to pay in the future, a liability of the issuer. Credit money is normally created as financial institutions issue liabilities to finance the loans they make. By the same token, credit money returns to its issuer as loans mature (liabilities drain away). Final settlement requires either cancellation against another promise to pay, or the intervention of commodity or fiat money. [iv]

So, money can be a commodity, something that is valueless issued by the state, or a promise to pay something in the future. This is probably not the definition you had in mind a few seconds ago. The acceptance of fiat or credit money ultimately rests on social trust in the ability of the state to enforce payments in that form of money.[v] If a society does not have that trust, it will turn to commodity money instead.

The bottom line is that the whole USA monetary systems ultimately exists because of one thing -- TRUST! The government's -- and the 1%'s -- greatest fear is that people will stop trusting the system.

Cogitate on that for awhile!
The Country Cogitator  

[ii] Profiting Without Producing: How Finance Exploits Us All By Costas LaPavitsas © 2013, Verso, Brooklyn, NY; p. 83.
[iii] Profiting Without Producing; p. 84.
[iv] Profiting Without Producing; p. 84.
[v] Profiting Without Producing; p. 84.