Dedicated to providing news and information about monetary policy.

Murray Rothbard

The financial elites of this country, notably the Morgan, Rockefeller, and Kuhn, Loeb interests, were responsible for putting through the Federal Reserve System, as a governmentally created and sanctioned cartel device to enable the nation’s banks to inflate the money supply in a coordinated fashion, without suffering quick retribution from depositors or note holders demanding cash. Recent researchers, however, have also highlighted the vital supporting role of the growing number of technocratic experts and academics, who were happy to lend the patina of their allegedly scientific expertise to the elite’s drive for a central bank. To achieve a regime of big government and government control, power elites cannot achieve their goal of privilege through statism without the vital legitimizing support of the supposedly disinterested experts and the professoriat. To achieve the Leviathan State, interests seeking special privilege, and intellectuals offering scholarship and ideology, must work hand in hand.

The Origins of the Federal Reserve pg. 50, 1999            Important Figures

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Bertie Charles Forbes

Picture a party of the nation’s greatest bankers stealing out of New York on a private railroad car under the cover of darkness stealthily hieing hundreds of miles South, embarking on a mysterious launch, sneaking on to an island deserted by all but a few servants, living there a full week under such rigid secrecy that the names of not one of them was mentioned lest the servants learn the identity and disclose to the world this strangest, and most secret expedition in the history of American finance.

I am not romancing.  I am giving to the world, for the first time, the real story of how the famous Aldrich currency report, the foundation of our new currency, was written.

Bertie Charles Forbes (1880-1954)
Financial journalist, author, founder Forbes Magazine
“Men Who Are Making America,” Leslie’s Weekly, October 19, 1916, p. 423

The Aldrich currency report that is mentioned in the above quote was designed by Senator Aldrich and the men who accompanied him to Jekyll Island, Georgia.  It was the Aldrich currency report that formed the basis of the Federal Reserve Act.  The seven people who had a seat at the table when the Aldrich currency report was written were:

Senator Nelson W. Aldrich – U.S. Senator
Henry P. Davison – senior partner J.P. Morgan
Frank A. Vanderlip – president of National City Bank of New York
Charles D. Norton – president of J.P. Morgan’s First National Bank of New York
Benjamin Strong – of J.P. Morgan’s Bankers Trust Company
Abraham Piatt Andrew – Assistant Secretary of the U.S. Treasury
Paul M. Warburg – partner in Kuhn, Loeb & Company

Years later Frank Vanderlip wrote about his trip to Jekyll Island with Senator Aldrich.

Frank A. Vanderlip

Once aboard the private car we began to observe the taboo that had been fixed on last names.  We addressed one another as “Ben,” “Paul,” “Nelson,” ”Abe” – it is Abraham Piat Andrew.  Davison and I adopted even deeper disguises, abandoning our first names.  On the theory that we were always right, he became Wilbur and I became Orville, after those two aviation pioneers, the Wright brothers.  Incidentally, for years afterward Davison and I continued the practice, in communications, and when we were together.

The servants and train crew may have known the identities of one or two of us, but they did not know all, and it was the names of all printed together that would have made our mysterious journey significant in Washington, in Wall Street, even in London.  Discovery, we knew, simply must not happen, or else all our time and effort would be wasted.  If it were to be exposed publicly that our particular group had got together and written a banking bill, that bill would have no chance whatever of passage by Congress.

Frank A. Vanderlip (1864-1937)
Financier
From Farm Boy to Financier,” The Saturday Evening Post, pg. 70, Feb. 9, 1933

Paul M. Warburg

Though eighteen years have gone by, I do not feel free to give a description of this most interesting conference which Senator Aldrich pledged all participants to secrecy.

Paul Warburg(1886-1932)
Financier
The Federal Reserve System: Its Origin and Growth (New York: MacMillen, 1930), Vol. I, pg. 58

Ron Paul

The Founders of this Country, and a large majority of the American people up until the 1930s, disdained paper money, respected commodity paper, and disproved of a central bank’s monopoly control of money creation and interest rates.  Ironically, it was the abuse of the gold standard, the Fed’s credit creating habits of the 1920s, and its subsequent mischief in the 1930s, that not only gave us the Great Depression, but also prolonged it.  Yet sound money was blamed for all the suffering.  That’s why people hardly objected when Roosevelt and his statist friends confiscated gold and radically debased the currency, ushering in the age of worldwide fiat currencies with which the international economy struggles today.

Ron Paul (1935- )
Chairman of the House Financial Services Subcommittee on Domestic Monetary Policy
— Speech in the House of Representatives 5 September 2003

Thomas Jefferson

And I sincerely believe, with you, that banking establishments are more dangerous than standing armies; and that the principle of spending money to be paid by posterity, under the name of funding, is but swindling futurity on a large scale.

Thomas Jefferson (1743-1826)
Third President United States
— Letter to John Taylor, Monticello, 28 May 1816. Ford 11:533.

Thomas Hart Benton

Wise and prudent was the conduct of those who refused to recharter the second Bank of the United States. They profited by the error of their friends who refused to recharter the first one. These latter made no preparations for the event – did nothing to increase the constitutional currency – and did not even act until the last moment. The renewed charter was only refused a few days before the expiration of the existing charter, and the federal government fell back to the State banks, which immediately sunk under its weight. The men of 1832 acted very differently. They decided the question of the renewal long before the expiration of the existing charter. They revived the gold currency, which had been extinct for thirty years. They increased the silver currency by repealing the act of 1819 against the circulation of foreign silver. They branched the mints. In a word, they raised the specie currency from twenty millions to near one hundred millions of dollars; and thus supplied the country with a constitutional currency to take the place of the United States Bank notes. The supply was adequate, being nearly ten times the average circulation of the national bank. That average circulation was but eleven millions of dollars; the gold and silver was near one hundred millions. The success of our measures was complete. The country was happy and prosperous under it; but the architects of mischief – the political, gambling, and rotten parts of the banks, headed by the Bank of the United States, and aided by a political party – set to work to make panic and distress, to make suspensions and revulsions, to destroy trade and business, to degrade and poison the currency; to harass the country until it would give them another national bank: and to charge all the mischief they created upon the democratic administration. This has been their conduct; and having succeeded in the last presidential election, they now come forward to seize the spoils of victory in creating another national bank, to devour the substance of the people, and to rule the government of their people.

Thomas Benton (1782-1858)
Senator
–Thirty Years’ View, pg. 228, 1858

The Money Trust was born in 1913 with the creation of the Federal Reserve System. That was when the Congress of the United States, and President Woodrow Wilson, decided to give control of the United States’ money supply and credit to bankers and financiers on Wall Street. The Federal Reserve is owned by the big banks on Wall Street and has a coercive government monopoly to operate. Below is a revealing quote from Nelson Aldrich, of the “Aldrich Plan” in the picture above, one of the driving forces behind The Federal Reserve Act in Congress.

Nelson W. Aldrich

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

Nelson W. Aldrich (1841-1915)Senator from Rhode Island 1881-1911 and
Chairman of the National Monetary
Commission
— Interview with The Independent magazine July 1914

Charles A. Lindbergh Sr. was a Congressman in the U.S. House of Representatives. He opposed the Federal Reserve Act because he believed giving the bankers and financiers control over the United States money supply and credit would lead to a situation where the bankers would be powerful enough to pauperize the people.

Charles A. Lindbergh Sr.

Why should Congress place a controlling agency [Federal Reserve System], employed for private gain, between the people and the Government of the United States?  That is what has been done by giving to the banks the exclusive privilege of the use of the Government credit.  Why is it proposed that the banker should take the merchants’, the manufactures’, and other notes, as well as the bonds of towns, villages, cities, States, and even the Nation’s bonds, to the Government and get currency, and at the same time refuse the producers themselves, the makers of the notes and obligations, an equal privilege?  The absurdity of the Government giving away its own credit to corporations to exploit the people is incomprehensible.  The bankers are not to blame.  Congress is to blame for giving away the people’s rights and bestowing them upon the banks.

It is true that Congress possesses the authority and has the power to strip the banks of their exclusive monopoly, but the most of us have not the courage, and therefore we have the absurdity of the Congress of the United States giving to special interests the Government credit – the credit of the people – thereby forcing the people to borrow at exorbitant rates of interest the very money that their own Government issues on their own credit.  The fiat of the Government is stamped upon the coins and the currency and then given to special interests and used as a means to pauperize the people.  If the exclusive privilege were not given to the banks, then they would become the people’s natural agents, but with the exclusive monopoly they become the people’s masters.

Charles August Lindbergh Sr. (1859-1924)
Congressman from Minnesota 1907-1917
– Speech to House of Representatives Sept. 11 1913
Congressional Record Vol. 50 Part 5 pg. 4746

Edward Mandell House

December 19, 1912  I talked with Paul Warburg over the telephone regarding the currency reform.  I told of my Washington trip and what I had done there to get it into working order.

March 27, 1913  Mr. J.P. Morgan, Jr., and Mr. Denny of his firm, came promptly at five.  McAdoo came about 10 minutes afterwards.  Morgan had a currency plan already formulated and printed.  We discussed it at some length.  I suggested he have it type written [so it would not seem too prearranged] and sent to us today.

January 21, 1914  After dinner we [Wilson and House] went to the president’s study as usual and began work on the Federal Reserve Board appointments.

Edward Mandell House (1858-1938)
Senior Advisor to President Woodrow Wilson<
— Charles Seymour – The Intimate Papers of Colonel Edward House (New York: Houghton Mifflin Co., 1926 Vol. I)

Carrol Quigley

In addition to these pragmatic goals, the powers of financial capitalism had another far-reaching aim, nothing less than to create a world system of financial control in private hands able to dominate the political system of each country and the economy of the world as a whole.  This system was to be controlled in a feudalist fashion by the central banks of the world acting in concert, by secret agreements arrived at in frequent private meetings and conferences.  The apex of the system was to be the Bank for International Settlements in Basle, Switzerland, a private bank owned and controlled by the world’s central banks which were themselves private corporations.  Each central bank, in the hands of men like Montagu Norman of the Bank of England, Benjamin Strong of the New York Federal Reserve Bank, Charles Rist of the Bank of France, and Hjalmar Schacht of the Reichbank, sought to dominate its government by its ability to control Treasury loans, to manipulate foreign exchanges, to influence the level of economic activity in the country, and to influence cooperative politicians by subsequent economic rewards in the business world.

Carrol Quigley (1910-1977)
Historian Harvard University
Tragedy and Hope: A History of the World in Our Time, pg. 277, 1966

Louis T. McFadden

Mr. Chairman, we have in this country one of the most corrupt institutions the world has ever known.  I refer to the Federal Reserve Board and the Federal Reserve Banks.  The Federal Reserve Board, a government Board, has cheated the Government of the United States and the people of the United States out of enough money to pay the national debt.  The depredations and iniquities of the Federal Reserve Board has cost this country enough money to pay the national debt several times over.  This evil institution has impoverished and ruined the people of the United States, have bankrupted itself, and has practically bankrupted our government.  It has done this through the defects of the law under which it operates, through the maladminisration of that law by the Federal Reserve Board, and through the corrupt practices of the moneyed vultures who control it.

Louis T. McFadden
Chairman of the United States House Committee on Banking and Currency (1920-1931)
Speech in the House of Representatives 10 June 1932

Friedrich August von Hayek

Inflation is probably the most important single factor in that viscous circle wherein one kind of government action makes more and more government control necessary.  For this reason all those who wish to stop the drift toward increasing government control should concentrate their effort on monetary policy.

Friedrich August von Hayek (1899-1992)
Economist Nobel Prize 1974
— The Constitution of Liberty, pg.338-339, 1960

Andrew Jackson

I too have been a close observer of the doings of the Bank of the United States. I have had men watching you for a long time, and am convinced that you have used the funds of the bank to speculate in the breadstuffs of the country. When you won, you divided the profits amongst you, and when you lost, you charged it to the Bank. You tell me that if I take the deposits from the Bank and annul its charter I shall ruin ten thousand families. That may be true, gentlemen, but that is your sin! Should I let you go on, you will ruin fifty thousand families, and that would be my sin! You are a den of vipers and thieves. I have determined to rout you out and, by the Eternal,  I will rout you out.

Andrew Jackson (1767-1845)
7th President of the United States
— From the original minutes of the Philadelphia committee of citizens sent to meet with President Jackson, February 1834, according to Stan V. Henkels, Andrew Jackson and the Bank of the United States, 1928

Daniel Webster

Of all the contrivances for cheating the laboring classes of mankind, none have been more effectual than that which deludes them with paper money. This is the most effectual of inventions to fertilize the rich man’s field by the sweat of the poor man’s brow. Ordinary tyranny, oppression, excessive taxation – these bear lightly on the happiness of the mass of the community compared with fraudulent currencies and the robberies committed by depreciated paper. Our own history has recorded for our instruction enough, and more than enough, of the demoralizing tendency, the injustice, and the intolerable oppression, on the virtuous and well disposed, of a degraded paper currency, authorized by law, or in any way countenanced by government.

Daniel Webster (1782-1852)
Senator
— Statement to Senate – 1832