The Economic Rape of America - Chapter Three


Then Jesus entered the temple and drove out all who were selling and buying in the temple, and he overturned the tables of the money changers and the seats of those who sold doves. He said to them, "It is written, 'My house shall be called a house of prayer'; but you are making it a den of robbers."
Matthew 21, verses 12-13

"All of the perplexities, confusion, and distress in America arises, not from the defects of the Constitution or Confederation, not from want of honor or virtue, so much as from downright ignorance of the nature of coin, credit, and circulation."
-- John Adams, Founding Father

(In a letter to Thomas Jefferson, 1787)
Congressman Louis T. McFadden said the following during a speech before Congress on June 10, 1932:

"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 the iniquities of the Federal Reserve Board and the Federal Reserve banks acting together have 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; has bankrupted itself, and has practically bankrupted our government. It has done this through the defects of the law under which it operates, through the maladministration of that law by the Federal Reserve Board, and through the corrupt practices of the moneyed vultures who control it.

Some people think the Federal Reserve banks are United States Government institutions. They are not government institutions. They are private credit monopolies which prey upon the people of the United States for the benefit of themselves and their foreign swindlers; and rich and predatory money lenders. In that dark crew of financial pirates there are those who would cut a man's throat to get a dollar out of his pocket; there are those who send money into states to buy votes to control our legislation; and there are those who maintain an international propaganda for the purpose of deceiving us and wheedling us into the granting of new concessions which will permit them to cover up their past misdeeds and set again in motion their gigantic train of crime."


Americans, living in "the richest nation on earth," always seem to be short of money. Women are working in unprecedented numbers, men hope for overtime hours to earn more. Many take part-time jobs evenings and weekends. Children look for odd jobs to earn spending money. But the family debt climbs higher. And psychologists say one of the biggest causes of family quarrels and breakups is "arguments over money." Much of this trouble can be traced to our "counterfeit money" system, which leaves government free to perpetrate the most destructive monetary and economic crimes.

On the national scale, in just ten years the federal debt has grown from less than one trillion dollars to over four trillion. (In Chapter Nine we will discover that the real national debt is much bigger.) The annual interest on that debt is over $250 billion. And now we are told (not asked) that we must come up with between $200 billion and $500 billion to "save" the S & L institutions. All this for only one reason: to protect and perpetuate a fundamentally flawed system whose only object is to enrich and empower the Federal Reserve bankers who own and operate the system.

During the last few years America has become by far the largest debtor nation of the world. And our politicians have made their "contributions" with boundless "generosity!" John Danforth, Republican senator from Missouri, was reported in the Arizona Republic of April 21, 1992 as follows:

"I have never seen more senators express discontent with their jobs. ... I think the major cause is that, deep down in our hearts, we have been accomplices to doing something terrible and unforgivable to this wonderful country. Deep down in our hearts, we know that we have bankrupted America and that we have given our children a legacy of bankruptcy. ... We have defrauded our country to get ourselves elected."


Economists use the word "create" when speaking of the process by which paper currency comes into existence. "Creation" means making something that did not exist before. Lumbermen make boards from trees, workers build houses from lumber, and factories manufacture automobiles from metal, glass, and other materials. But in all these cases they did not create. They only changed existing materials into more usable and more valuable forms. Not so with currency. Here we actually create something out of nothing. A piece of paper of little value is printed so it becomes worth a piece of lumber. That difference in value is literally created out of nothing. And with different numbers printed on the piece of paper, it can buy the automobile or even the house. The value of the paper has been created in the true sense of the word.

Paper currency can be created honestly or fraudulently. Gold and silver certificates, being receipts for gold and silver, with a guarantee to pay the bearer on demand, are honest paper currency. Federal Reserve Notes currently in circulation constitute fraudulent, counterfeit paper currency.

Counterfeit paper currency is very cheap to "create," and whoever prints it makes a huge profit! Builders work hard to make a profit of 5% above their cost in building a house. Auto makers sell their cars 1% to 2% above the cost of manufacture, which is considered good business. But counterfeit paper currency "manufacturers" have no limit on their profits since a few cents will print a $1 bill, a $100 bill, or even a $10,000 bill.


Thomas Jefferson understood the danger of putting the power to control the currency of a nation in the hands of a few individuals in the form of a monopolistic central bank. This is why he opposed Alexander Hamilton's scheme to establish the First Bank of the United States. Let me repeat what he said in 1791:

"If the American people ever allow the banks to control issuance of their currency, first by inflation and then by deflation, the banks and corporations that grow up around them will deprive the people of all property until their children will wake up homeless on the continent their fathers occupied."

President Andrew Jackson also understood the danger. He refused to renew the charter (a grant of monopoly) of the Second Bank of the United States. In 1836 Jackson said to the bankers trying to persuade him to renew their charter (so they could continue their harmful monopoly):

"You are a den of vipers. I intend to rout you out and by the Eternal God I will rout you out. If the people only understood the rank injustice of our money and banking system, there would be a revolution before morning."

On December 22, 1913, the day before President Woodrow Wilson signed the Federal Reserve Act, Congressman Charles A. Lindberg Sr. (father of the famous aviator) said to the House:

"This Act establishes the most gigantic trust** on earth. 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. The trusts** will soon realize that they have gone too far even for their own good. The people must make a declaration of independence to relieve themselves from the Monetary Power. This they will be able to do by taking control of Congress. Wall Streeters could not cheat us if you Senators and Representatives did not make a humbug of Congress... The greatest crime of Congress is its currency system. The worst legislative crime of the ages is perpetrated by this banking bill. The caucus and the party bosses have again operated and prevented the people from getting the benefit of their own government."

[** At that time the word "trust" was synonymous with "monopoly."]


In 1930 America did not lack industrial capacity, fertile farmland, skilled or willing workers, or industrious families. It had an extensive and highly efficient transportation system in railroads, road networks, and inland and ocean waterways. Communications between regions and localities were the best in the world, utilizing telephone, teletype, radio, and a well-operated mail system. No war had ravaged the cities or the countryside, no pestilence weakened the population, nor had famine stalked the land.

In America's Great Depression, Murray N. Rothbard, Professor of Economics at the University of Nevada, Las Vegas, describes how the creation of the Federal Reserve System increased the bankers' ability to inflate the currency supply sixfold. During 1923 to 1929 the bankers did inflate the currency supply enormously. Such an artificial inflation inevitably brings about a subsequent need for deflation. Federal Reserve bankers, the source of America's currency and credit, reduced the currency supply by refusing loans to stable and growing industries, stores, and farmers. At the same time they demanded payment on existing loans. They also increased interest rates. Currency was rapidly taken out of circulation and was not replaced. America was put in a depression and in deep trouble. Goods were available to be purchased, jobs waiting to be done, but little currency was available. Twenty-five percent of workers were laid off. Banks took possession of tens of thousands of farms and businesses through foreclosure. Gloom settled over America.

The contraction of the currency supply caused the stock market to collapse and the ensuing depression. Seven months before the collapse, Paul Warburg, the main architect of the Federal Reserve System, in his annual report to the stockholders of his International Acceptance Bank, wrote:

"If the orgies of unrestrained speculation are permitted to spread, the ultimate collapse is certain not only to affect the speculators themselves, but to bring about a general depression involving the entire country."

Both the inflation and the deflation, causing the depression, had been planned - as predicted by Jefferson in 1791!


The depression lasted until 1939, when the Federal Reserve System began to send large amounts of currency into circulation for military preparedness. As soon as the currency supply went up, people were hired back to work, farms sold their produce instead of plowing it under, mines reopened, factories began to hum, both industrial and residential construction began anew, and the "Great Depression" was over. Some politicians were blamed for it and others took credit for ending it. The truth was that bankers caused it and bankers ended it. The people were never told that simple truth. The bankers who "manufacture" and "control" our currency have used their huge profits to "buy" our politicians, and ultimately to control our government.


When we see the disastrous results of an artificially created shortage of currency, we can better understand why our Founding Fathers insisted on placing the power to create and control money in the hands of Congress. Article I, Section 8 of the U.S. Constitution states, "The Congress shall have power... to coin money, regulate the value thereof... "

But in 1913 Congress passed the "Federal Reserve Act," relinquishing the power to create and control money to the Federal Reserve Corporation, a private company owned and controlled by bankers. The word "Federal" was used only to deceive the people. The term "central bank" was carefully avoided. The Federal Reserve Act created a Board of Directors, the Federal Reserve Board, to run the Federal Reserve Corporation with a monopoly to create and control the currency of the United States.

This infamous legislation was accompanied with appropriate fanfare and propaganda that it would "remove money from politics" and "prevent boom and bust from hurting our citizens." The people were not told then, and still do not know today, that the Federal Reserve Corporation is a private monopoly controlled by bankers, operated for the financial gain of the bankers at the expense of the people.

Since that day of infamy a small group of privileged people who lend us "our money," have accrued to themselves all of the profits of printing paper currency - and more! Since 1913 they have created trillions of dollars in currency and credit, which as their own personal property, they then lend to our government and our people, with interest. "The rich get richer and the poor get poorer" had become the secret policy of our national government.

The main architect of the Federal Reserve System was Paul Moritz Warburg, who came from a famous German banking family. The kingpin who steered the Federal Reserve Act through Congress was Senator Nelson Aldrich, Chairman of the Finance Committee. He was the maternal grandfather of Nelson A. Rockefeller, of Standard Oil and Chase Manhattan Bank. Aldrich's daughter, Abby Greene Aldrich, married John D. Rockefeller, Jr. in 1901. At the time, many people regarded Senator Aldrich as the Rockefeller family's mouthpiece in the Senate.

The Federal Reserve Act was passed during the presidency of Woodrow Wilson. Just before he died Wilson is reported to have said that he had been deceived and "I have betrayed my country." He also said:

"A great industrial nation is controlled by its system of credit. Our system of credit has been concentrated. The growth of the nation and all our activities are in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated governments in the world - no longer a government of free opinion, no longer a government by conviction and vote of the majority, but a government by the opinion and duress of small groups of dominant men."


There has been much speculation about who owns the Federal Reserve Corporation. It has been one of the best kept secrets of the century, because the Federal Reserve Act Act of 1913 provided that the names of the owner banks be kept secret. However, R. E. McMaster publisher of the newsletter The Reaper, asked his Swiss banking contacts which banks hold the controlling stock in the Federal Reserve Corporation. The answer:

  1. Rothschild Banks of London and Berlin
  2. Lazard Brothers Bank of Paris
  3. Israel Moses Sieff Banks of Italy
  4. Warburg Bank of Hamburg and Amsterdam
  5. Lehman Brothers Bank of New York
  6. Kuhn Loeb Bank of New York
  7. Chase Manhattan Bank of New York
  8. Goldman Sachs Bank of New York.

In The Secrets Of The Federal Reserve, Eustace Mullins indicates that, because the Federal Reserve Bank of New York sets interest rates and controls the daily supply and price of currency throughout the U.S., the owners of that bank are the real directors of the entire system. Mullins states:

"The shareholders of these banks which own the stock of the Federal Reserve Bank of New York are the people who have controlled our political and economic destinies since 1914. They are the Rothschilds, Lazard Freres (Eugene Mayer), Israel Sieff, Kuhn Loeb Company, Warburg Company, Lehman Brothers, Goldman Sachs, the Rockefeller family, and the J.P. Morgan interests."


An example of the process of currency creation and its conversion into "people's debt" will aid our understanding. The Federal Government, having spent more than it has taken from its citizens in taxes, needs (for the sake of illustration) $1 billion. Since it does not have the currency, and Congress has given away its authority to create it, the government must go to the creators for the $1 billion. But the Federal Reserve, a private corporation, does not give its currency away for free! The bankers are willing to deliver $1 billion in currency or credit to the federal government in exchange for the government's agreement to pay it back with interest. So Congress authorizes the Treasury Department to print $1 billion in U.S. Bonds, which are then delivered to the Federal Reserve bankers. (The bonds are a kind of "IOU" that bears interest.)

The U.S. Treasury prints $1 billion in bank notes. The printing cost is about $20.62 per 1,000 bills - it costs the same irrespective of the denomination - the cost of printing a $1 note is about the same as for a $100 note: about .0206 cents. The Federal Reserve "buys" these bills from the U.S. Treasury, paying only for the printing costs. The bills are then exchanged at full face value for the bonds. The government uses the currency to pay its obligations. What are the results of this fantastic transaction? Well, the government's bills are paid all right, but the U.S. Government has now indebted the people to the Federal Reserve bankers for $1 billion plus interest!

Since this process has been going on since 1913, the people are now indebted to the bankers to the tune of trillions of dollars. The people are taxed billions of dollars each month just to pay the interest on this "national debt." With both the principal and the interest climbing every month, there is no hope of ever paying off this "debt." The working people of the United States now "owe" the approximately 300 banking families and their consorts more than the assessed value of all the assets in the United States. And realize, the bankers got all this for the cost of paper, ink, and bookkeeping!


You say this is terrible! Yes it is, but this is only part of the sordid story. Under this "debt-currency" system, those U.S. Bonds referred to above have now become assets of the banks, called their "reserve." Regular commercial banks use these assets to issue loans to individual and commercial customers. Since the banking laws require only about a 12% reserve, this means the banking fraternity can lend up to eight times the amount of the bonds they have on hand. As a result of the $1 billion discussed here, they can lend $8 billion to private customers at interest. This means that together with the $1 billion lent to the government, the bankers can lend out $9 billion at interest for the original cost to them of about $400,000 for the printing! And because the Federal Reserve bankers have been granted a monopoly, the only way our people and businesses can get currency to carry on trade and expand industry and farming is to borrow it from the bankers!


In addition to the vast wealth drawn to them through this almost unlimited usury, the bankers who control the currency are able to approve or disapprove large loans to big and successful corporations. Bankers can refuse a loan, thereby depressing the price of a corporation's shares on the stock exchange. This enables the bankers' agents to buy large blocks of the shares at depressed prices. Then they can approve a multi-million dollar loan to the corporation, resulting in its share price rising, allowing the bankers' agents to sell the shares, sometimes making huge profits. In this manner billions of dollars are made to buy even more shares.

Using this method since 1913, the bankers and their agents have purchased secret or open control of almost every large corporation in America. Using that control, they force the corporations to borrow huge sums from their banks so that corporate earnings are partially siphoned off in the form of interest paid to the banks. This leaves little "actual profit" to be paid out as dividends.

When bankers lend more, the currency supply expands. When they reign in the loans, the currency supply contracts. By expanding or contracting the currency supply, the bankers can make the stock market go up or down at their pockets' content! They can cause "busts and booms" almost as they wish.

That is why President James A. Garfield said, "Whoever controls the volume of money in any country is absolute master of all industry and commerce."

At the time of writing (July, 1992), the New York stock market has been hovering around record highs for months, while the economy continues to suffer a protracted slump. The bankers no doubt want the stock market to be high and the economy to recover before the coming presidential election. Keep in mind that they endorse all three presidential candidates. Tweedledum and Tweedledee; or Louie, Huey, and Dewey; or Larry, Mo, and Curly - they are all in the hands of the bankers.


The only way new currency goes into circulation in America under this wicked system is when someone borrows it from a banker. When people are confident of success, they borrow more currency, which increases the currency supply, and all seem to prosper for a while. Then, as they pay off their loans, the available currency supply shrinks and currency becomes "scarce." Borrowers must always take more currency out of circulation when they repay their loans, than they put in circulation when they receive their loans. Interest and charges make the repayment total larger than the loan. This means that only more people borrowing still more can keep the medium of exchange available to the nation.

This example may aid understanding. When a citizen goes to a banker to borrow $100,000 to purchase a home or a farm, and the loan is granted, the banker gives the borrower a check for $100,000 or credits the borrower's account with $100,000. The borrower, in turn, writes the necessary checks to the builder, seller, subcontractors, etc. (who, in turn, write more checks), thereby putting $100,000 of "checkbook currency" into circulation. However, on a 30-year mortgage with 10% interest, the banker wants $828 per month, or a total of $316,080. The buyer must take that $316,080 out of circulation, reducing the overall amount in circulation by $216,080.

The banker has not really produced anything of value, except the slip of paper called a check or deposit slip. Yet the banker ends up having $216,080 more than he had before, minus a few hundred dollars of clerical and office costs. But the people, as a whole, have $216,080 less.


For those who haven't quite grasped the impact, let us consider an auto loan for only three years. Step one: citizen borrows $6,000 and pays it into circulation (to the dealer, factory, etc.). Citizen agrees to repay the banker $7,200. Step two: Citizen pays $200 per month. In 36 months citizen has taken $7,200 out of circulation and paid it to the bank. Net result? $1,200 less currency in circulation.

Since currency requirements increase with expanding population, industry, and commerce, and paying off any loan decreases the available currency supply, it is clear that we would quickly run out of currency, unless more and more people borrow more and more currency to keep currency in circulation!

Multiply the above examples by hundreds of millions of times since 1913, and you can see why America has fallen from a prosperous debt-free nation to the most debt-ridden country in the world. Practically every home, farm, and business is heavily mortgaged to the bankers. Practically all our cars, furniture, and clothes are purchased with borrowed currency. The interest to the bankers on personal, state, and federal debt totals more than 25% of the combined earnings of the working population!


In the tens of millions of transactions made each year like those shown here, relatively few bank notes change hands, nor is it necessary that they do. 95% of all "cash" transactions in the U.S. are by check. Checks are thus effectively also currency. The banker creates the so-called "loan" by writing a check or deposit slip, not against actual money, but against your promise to pay back the loan. The only cost to the bank is the paper, ink, and a few dollars in salaries and office costs for each transaction. It is "check-kiting" on an enormous scale! The profits are enormous as shown below.


In 1910 the U.S. federal debt was $1,147,000,000 - $12 per citizen. State and local debts were practically non-existent, and government was small and not oppressive.

By 1920, after only six years of the Federal Reserve handling our currency, the federal debt had jumped to $24 billion - $228 per citizen. The Federal Government began to grow like an invisible cancer in its early stages.

By 1968 the federal debt had jumped to $347 billion - $1,717 per citizen. Ten years later, by 1978 it had doubled again to $763 billion - $3,500 per citizen. That is a debt of $17,500 for every family of five in America. Federal debt has been growing faster and faster since. And the Federal Government has become a debilitating cancer rapidly sapping and weakening its victim.

Today in 1992 the federal debt is over $4 trillion. (And they "cook the books" on the low side to come up with that figure - see Chapter Nine.) The $4 trillion national debt amounts to $16,000 per citizen, or $80,000 per family of five. And if that debt were calculated in terms of working or tax-paying families, it would be considerably higher. The Federal Government has become a bloated, out-of-control parasite, a terminal cancer. The economy seems so weak that even after many months of blowing up the currency supply, signs of recovery have to be searched for. The entire system may be on the brink of complete collapse.

The above figures do not include state, municipal, school district, business, or personal debts, which total an additional $3 trillion. Total debt in America is thus over $7 trillion - $28,000 per citizen - $120,000 per family of five. This is more than twice the assessed value of all the land and buildings in America. Effectively all of America has been signed over to the bankers. They can take America and we would still owe them another America! Of course, it is to their advantage not to take actual title to the property, so we will not realize that we really own nothing. Instead they leave us with "ownership" so we will willingly continue to work and pay ever higher tributes to the bankers.

What we really have is national bankruptcy. Let me repeat the words of Senator John Danforth:

"I have never seen more senators express discontent with their jobs. ... I think the major cause is that, deep down in our hearts, we have been accomplices to doing something terrible and unforgivable to this wonderful country. Deep down in our hearts, we know that we have bankrupted America and that we have given our children a legacy of bankruptcy. ... We have defrauded our country to get ourselves elected."


To grasp the fact that periodic withdrawal of currency through interest payments to the bankers will inexorably transfer all wealth in the nation to the receivers of interest, imagine yourself in a poker or dice game. Everyone has to buy chips (the medium of exchange) from a "banker" who does not risk chips in the game, but watches the table and every hour reaches in and takes 10% to 15% of all the chips on the table. As the game progresses, the number of chips in the possession of each player will go up and down with his or her "luck." However, the total number of chips available to play the game (carry on business and trade) will decrease steadily, while the "banker's" mountain of chips just grows and grows.

The game will get low on chips, and some players will run out. If they want to continue to play, they must buy or borrow more chips from the "banker." The "banker" will sell (lend) the player more chips only if the player signs a "mortgage" agreeing to give the "banker" some real property (car, home, farm, business, etc.). If the payments should go into default, the banker takes the property. The payments must be made on time, whether the player wins (makes a profit) or not.

It is easy to see that no matter how skillfully the players play, eventually the "banker" will end up with all of his chips back. Except for the very best or "luckiest" players, the rest, if they stay in the game long enough, will end up owing to the "banker" their cars, their homes, their farms, their businesses, and perhaps even their watches, rings, and the shirts off their backs!

Sir Josiah Stamp, President of the Bank of England in the 1920s, and the second richest man in Britain at the time, said:

"Banking was conceived in iniquity and was born in sin. The bankers own the earth. Take it away from them but leave them in power to create deposits, and with the flick of the pen they create enough deposits to buy it back again. However, take it away from them, and all the great fortunes like mine will disappear, and they ought to disappear, for this would be a happier and better world to live in. But, if you wish to remain the slaves of bankers and pay the cost of your own slavery, let them continue to create deposits."

Our real-life situation is much worse than any poker game. In a poker game no one is forced to go into debt, and anyone can quit at any time and keep whatever he or she still has. But in real life, even if we borrow little ourselves from the bankers, the local, state, and federal governments borrow billions in our name, squander it, then confiscate our earnings from us and pay it to the bankers with interest. We are forced to play their game, and it seems we can only leave the game by dying. We pay as long as we live, and our children pay after we die. If we cannot pay, the same government sends the police to take our property and give it to the bankers. The bankers risk nothing (at least, the Federal Reserve bankers) in the game; they just collect their percentage and "win it all." In Las Vegas all the games are "rigged" to pay the house (owner) a percentage. They rake in millions. The Federal Reserve bankers' "game" is similarly rigged, and it pays off in billions.

In recent years bankers have added more "cards" to their game. "Credit" cards are promoted as a convenience and a great boon to trade. Actually, they are ingenious devices by which bankers collect %2 to 5% of every retail sale from the seller and 18% or more interest from buyers. A real stacked deck!


Democrat, Republican, and Independent voters have wondered why politicians always spend more tax currency than they collect. The reason should now be clear. When you study our "debt-currency" system, you soon realize that the politicians are not the agents of the people. They are the agents of the Federal Reserve bankers, for whom they plan ways to place the people further in debt. Let me again quote the words of Senator John Danforth:

"I have never seen more senators express discontent with their jobs. ... I think the major cause is that, deep down in our hearts, we have been accomplices to doing something terrible and unforgivable to this wonderful country. Deep down in our hearts, we know that we have bankrupted America and that we have given our children a legacy of bankruptcy. ... We have defrauded our country to get ourselves elected."

Article I, Section 8 of the U.S. Constitution states, "The Congress shall have power... to coin money, regulate the value thereof... " But what have our politicians done? In 1913 they traitorously gave the U.S. Treasury to the Federal Reserve bankers - lock, stock, and barrel! Someone recently asked, "What's the difference between Kindergarten and Congress?" Answer: "One has adult supervision!" Actually, we shouldn't criticize Congress, after all, we have the best Congress money can buy. Chapter Ten examines Congress in more detail.


The Federal Reserve has never been audited by the government. In 1975 a bill H. R. 4316, to require Federal Reserve audits, was introduced in Congress. Due to pressure from the currency-controllers, it was rejected. No audit of the Federal Reserve has ever been done.


We, as a people are now ruled by a "banker-owned system" that has usurped the mantle of government, disguised itself as our legitimate government, and set about to pauperize and control the people. It is now a centralized, all-powerful apparatus whose main purposes are spending the people's currency, promoting war, and propagandizing to perpetuate itself in power. Our two large political parties (the "Demopublicans" also called "Republicrats") have become its servants, the various departments of government its spending agencies, and the Internal Revenue Service its collection agency.

Unknown to the people, our "banker-owned system" operates in close cooperation with similar apparatuses in other nations, also disguised as "governments." Some, we are told, are friends. Others, we are told, are enemies. "Enemies" are built up through international manipulations and used to frighten the American people into going billions of dollars more into debt to the bankers for "military preparedness," "foreign aid to stop communism," "minority rights," etc. Citizens, deliberately confused by brainwashing propaganda, watch helplessly while our politicians give our food, goods, and gold to banker-controlled alien governments under the guise of "better relations," "easing tensions," or "humanitarian aide." Our banker-controlled government takes our finest and bravest sons and sends them into foreign wars, where tens of thousands are murdered and hundreds of thousands are crippled. Other thousands are morally corrupted and addicted to drugs. When the "war" is over we have gained nothing, but we are scores of billions more in debt to the bankers - which was the real reason for the war in the first place!


The profits from these massive debts have been used to erect a complete and almost hidden economic and political colossus over our nation. Our "banker-owned system" keeps telling us they are trying to do us good, when in truth they work to harm and injure the people. These would-be despots know it is easier to control and rob an ignorant, poorly-educated, and confused people than it is an informed population, so they deliberately degrade our educational systems. For the same reason they secretly favor drug use, alcohol, racial conflict, and crime in general. Their "war on drugs," as an example, only produces more drug use and a host of related crimes. Everything which debilitates the minds and bodies of the people is secretly encouraged, as it makes the people less able to oppose them, or even to understand what is being done to them. The system wants mediocre, unthinking, helpless "sheople."

Family, morals, and all that is honorable is being swept away, while our "banker-owned system" builds their new subservient man, the foundation of their "new world order." Our new rulers are trying to change our whole political, social, and racial order, but they will not change the debt-currency economic system by which they rob and rule. Our people have become tenants and "debt-slaves" to the bankers and their agents in the land our fathers conquered. It is conquest through the most gigantic fraud and swindle in the history of humankind. And we remind you again: The key to their wealth and power over us is their monopolistic ability to "create" currency out of nothing and to lend it to us at interest. If Congress had not allowed them to do that, they never would have gained secret control over our nation.


This currency-lender conspiracy ("consPIRACY") is as old as Babylon. Even in America it dates far back before 1913. Actually, 1913 was the year in which the way opened for complete economic conquest of our people. The conspiracy is old enough to America so that the system's agents have been for many years in positions such as newspaper publishers, editors, columnists, church ministers, university presidents, professors, textbook authors, attorneys, accountants, labor union leaders, movie makers, radio and TV commentators, politicians from school board members to U.S. Presidents, and many others.

These agents control the information available to our people. They manipulate public opinion, elect who they will locally and nationally, and never expose the crooked currency system. They promote school bonds, municipal bonds, expensive and detrimental farm programs, "urban renewal," "foreign aid," and many other schemes which will put the people more in debt to the bankers. Thoughtful citizens wonder why billions are spent on one program and billions on another which may duplicate or even nullify it, such as paying some farmers not to raise crops, while at the same time building dams or canals to irrigate more farm land. Crazy or stupid? Neither. The goal is more debt. Thousands of government-sponsored ways to waste "money" are perpetrated continually. Most make no sense, but they are never exposed for what they really are: builders of billions for the bankers and debts for the people.

So-called "economic experts" write syndicated columns in hundreds of newspapers, craftily designed to prevent the people from learning the simple truth about our debt-currency system. Commentators on radio and TV, educators, and politicians blame the people as wasteful, lazy, or spendthrift, and blame the workers and consumers for the increase in debts and the inflation of prices, when they really know that the basic cause is the debt-currency system itself. Our people are drowned in charges and counter-charges designed to confuse them and keep them from understanding the evil currency system that so silently robs the workers, farmers, and business people of the fruit of their labor. And, increasingly, the system is being used to rob us of our rights and freedoms, supposedly guaranteed by the U.S. Constitution.

In his book Inventing Reality, Michael Parenti wrote:
"Ten business and financial corporations control the three major television and radio networks (NBC, CBS, ABC), 34 subsidiary television stations, 201 cable TV systems, 62 radio stations, 20 record companies, 59 magazines, 58 newspapers, including the New York Times, the Washington Post, The Wall Street Journal, and the Los Angeles Times, 41 book publishers and various motion picture companies like Columbia Pictures and Twentieth Century Fox. Three quarters of the major stockholders of ABC, CBS and NBC are banks, such as Chase Manhattan, Morgan Guaranty Trust, Citibank, and Bank of America.

The overall pattern is one of increasing concentration of ownership and earnings. According to a 1982 Los Angeles Times survey, independent daily newspapers are being gobbled up by the chains at the rate of fifty or sixty a year. Ten newspaper chains earn over half of all newspaper revenue in this country. Five media conglomerates share 95 percent of the record and tapes market with Warner and CBS alone controlling 65 percent of the market. Eight Hollywood studios account for 89 percent of U.S. feature film rentals. Three television networks earn over two-thirds of total U.S. television revenues. Seven paperback publishers dominate the mass market for books...

While having an abundance of numbers and giving an appearance of diversity, the mass media actually are highly centralized outlets that proffer a remarkably homogenized fare. News services for dailies throughout the entire nation are provided by the Associated Press and United Press International (which may soon merge with AP or go under), The New York Times-Washington Post wire services, and several foreign wire services like Reuters. The ideological viewpoint of these news conduits are pretty much the same, marked by prefabricated standardization of news which is constricting and frightening."

In his book The Media Monopoly, Ben H. Bagdikian writes:
"The power to control information is a major lever in the control of society. Giving citizens a choice in ideas and information is as important as giving them a choice in politics. If a nation has narrowly controlled information it will soon have narrowly controlled politics."

When a few informed and concerned people or organizations who know the truth begin to expose the bankers and their agents, or try to stop any of their mad schemes, the messengers are ridiculed and smeared as "right-wing extremists," "super-patriots," "bigots," "racists," "fascists," or "anti-semites." Any name is used to discredit them, and to stop other people from listening. Books and articles such as you are now reading are kept out of schools, freedomries, and book stores.

Some, who are especially vocal in their exposure of the treason committed against our people, are harassed by government agencies such as the IRS, FDA, EPA, OSHA, and others, causing them financial loss or bankruptcy. Sometimes their businesses and homes are violently raided at gunpoint, and their money, currency, equipment, and records confiscated, so it is very difficult, if at all possible to continue their business. In Chapter One the National Commodity and Barter Association was mentioned as an example of such raids. But the most striking case has been that of Ezra Pound, which is covered below.

Using these methods, the Federal Reserve bankers and their agents have been completely successful in preventing most Americans from learning the things you are reading in this report. However, in spite of their control of information, they realize that more and more citizens are learning the truth. Therefore, to prevent retaliation and armed resistance to their plunder of America, they plan to register all firearms and eventually disarm all citizens. They want to eliminate all guns not in the hands of their government police or army. Our wise Founding Fathers wrote the Second Amendment to the Constitution so that the people could protect themselves against the government.

Love of life, interest in your freedom, compassion for humanity, concern for your children, and the safety of all you have worked for should make you deeply interested in this, America's greatest problem. Our generation has not suffered under the bankers' yoke as the coming generations will. Usury and taxes will continue to take a larger and larger part of the earnings of the people and put them deeper into the pockets of the bankers and their agents. Increasing "government" regulations will prevent citizen protest and opposition to their control. Is it possible that your grandchildren will own neither car nor home, but will live in "government-owned" apartments and ride to work in "government-owned" buses, and be allowed to keep just enough of their earnings to buy a minimum of food and clothing, while their rulers wallow in luxury? In Asia and Eastern Europe this used to be called communism. In America it is called democracy or capitalism.

Horace Greeley stated, "While boasting of our noble deeds, we are careful to conceal the ugly fact that by an iniquitous currency system we have nationalized a system of oppression which, though more refined, is not less cruel than the old system of chattel slavery."


Ezra Pound was a poet, one of America's greatest - if not the greatest. He played a major role in the development of writers and poets, such as E.E. Cummings, T.S. Elliot, Robert Frost, Ernest Hemingway, James Joyce, and William Carlos Williams. He also studied politics, economics, banking, and monetary theory. He disapproved of war. During World War II, he hid a number of Jews from the Nazi exterminators; if discovered the penalty would have been death. He broadcast a series of talks on Italian radio aimed at Americans. He had wanted America to stay out of the war, and he said some uncomplimentary things about President Franklin D. Roosevelt. He also stated some of his political and monetary ideas. He was accused of being a traitor. At the end of the war he was imprisoned in an American concentration camp near Pisa, Italy for six months without trial. Then he was transferred to America where he was declared insane and imprisoned in a mental hospital in Washington D.C. for thirteen years. After which the treason charges, for which he had never stood trial, were dropped, and he was released. He returned to Italy, where he lived until his death in 1972.

The reason he was not tried seems to be that his prosecutors didn't have a case that would hold up in court and/or they were afraid that he would repeat in court what he had said over the radio in Italy. Wendell Muncie, M.D., one of the psychiatrists involved in his "sanity hearing," said that Pound's insanity consisted of three factors: his passion for the U.S. Constitution, his espousal of the Confucian ethic, and his desire for world peace. No formal diagnosis of Pound's supposed "insanity" has been found. His captors in Washington openly admitted that Pound was a political prisoner. A Congressional investigation started in 1957 and completed in 1958 exposed the inadequacy of the case against Pound and led to his release.

Here are some extracts from Pound's radio talks:


Although there has never been a court case that challenged the legality of the Federal Reserve System, there was a challenge to the National Recovery Act or NRA, which was ruled unconstitutional. The U.S. Supreme Court - Schechter Poultry v. U.S., 29 U.S. 495, 55 U.S. 837.842 (1935) - ruled that, "Congress may not abdicate or transfer to others its legitimate functions." Article I, Section 8 of the U.S. Constitution states, "The Congress shall have power... to coin money, regulate the value thereof... " By passing the Federal Reserve Act, Congress abdicated and transferred to the Federal Reserve bankers its constitutionally legitimate function of issuing and controlling money. If the Supreme Court ruling on the NRA is applied to the Federal Reserve System, the unconstitutionality and illegality of the Fed becomes obvious.


America will not shake off her illegal banker-controlled dictatorship as long as the people are ignorant of the hidden controllers. International bankers, who control most of the governments of the nations and most sources of information, seem to have us completely in their grasp. They are afraid of only one thing: an awakened citizenry armed with the truth. An ignorant citizen is the banker-government's best "client." An informed citizen is the banker-government's worst nightmare.

Robert H. Hemphill, Credit Manager of the Federal Reserve Bank of Atlanta Georgia, said:
"This is a staggering thought. We are completely dependent on the commercial banks. Someone has to borrow every dollar we have in circulation, cash, or credit. If the banks create ample synthetic money, we are prosperous; if not, we starve. We are absolutely without a permanent money system. When one gets a complete grasp of the picture, the tragic absurdity of our hopeless position is almost incredible, but there it is. It is the most important subject intelligent persons can investigate and reflect upon. It is so important that our present civilization may collapse unless it becomes widely understood and the defect remedied very soon."


In California a very private "non-bank" has been operating successfully for fifteen years. It caters for accounts in gold or Federal Reserve Notes. It is completely private and doesn't report to anyone. It pays interest on both gold and Federal Reserve Note balances. Ideally, we need to establish a network of private banks throughout the country, and eventually throughout the rest of the world. See Chapter Twelve.

Contents - Preface - Introduction - Bibliography - Home

Chapter: 1 - 2 - 3 - 4 - 5 - 6 - 7 - 8 - 9 - 10 - 11 - 12

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