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Gold Reserves
Manipulated and U.S. Economy Destroyed
The Coinage Act of
1792 established a dollar consisting of 371.25 grains of pure silver,
but was later replaced with a gold dollar consisting of 25.8 grains of
gold. In 1873, the Coinage Act was passed, prohibiting the use of Silver
as a form of currency, because the quantity being discovered was driving
the value down. In 1875, after temporarily suspending gold
convertibility during the Civil War greenback period, the U.S. was put
more firmly on the gold standard by the Gold Standard Act of 1900. From
1900 to 1933, gold was coined by the U.S. Mint, and our paper currency
was tied into the amount of gold held in the U.S. Treasury reserves.
In July, 1927, the directors of the Bank of England, the New York
Federal Reserve Bank, and the German Reichsbank, met to plan a way to
get the gold moved out of the United States, and it was this movement of
gold which helped trigger the depression. By 1928, nearly $500 million
in gold was transferred to Europe.
President Franklin D. Roosevelt accepted the advice of England's leading
economist, John Maynard Keynes (1883-1946), a member of the Illuminati,
who said that deficit spending would be a shot in the arm to the
economy. Most of the New Deal spending programs to fight economic
depression, were based on Keynes theories on deficit spending, and
financed by borrowing against future taxes. In 1910, Lenin said: "The
surest way to overthrow an established social order is to debauch its
currency." Nine years later, Keynes wrote: "Lenin was certainly right,
there is no more positive, or subtler, no surer means of overturning the
existing basis of society than to debauch the currency ... The process
engages all of the hidden forces of economic law on the side of
destruction, and does it in a manner that not one man in a million is
able to diagnose."
A Presidential Executive Order by Roosevelt on April 5, 1933, required
all the people to exchange their gold coins, gold bullion, and
gold-backed currency, for money that was not redeemable in precious
metals. The Gold Reserve Act of 1934, known as the Thomas Amendment,
which amended the Act of May 12, 1933, made it illegal to possess any
gold currency (which was rescinded December 31, 1974). Gold coinage was
withdrawn from circulation, and kept in the form of bullion. Just as the
public was to return all their gold to the U.S. Government, so was the
Federal Reserve. However, while the people received $20.67 an ounce in
paper money issued by the Federal Reserve, the Reserve was paid in Gold
Certificates. Now the Federal Reserve, and the Illuminati, had control
of all the gold in the country.
In 1934, the value of gold increased to $35 an ounce, which produced a
$3 billion profit for the Government. But when the price of gold
increases, the value of the dollar decreases. Our dollar has not been
worth 100 cents since 1933, when we were taken off of the Gold Standard.
In 1974, our dollar was worth 22-1/2 cents, and in 1983 it was only
worth 38 cents. In 2002, it took $13.88 to buy what cost $1.00 in 1933.
Since our money supply had been limited to the amount of gold in
Treasury reserves, when the value of the dollar decreased, more money
was printed.
The first United Nations Monetary and Financial Conference, held in
Bretton Woods, New Hampshire, from July 1 to July 22, 1944, which was
under the direction of Harry Dexter White (CFR member, and undercover
Russian spy), established the policies of the International Monetary
Fund. Its goals were to strip the United States of its gold reserves by
giving it to other nations; and to merge with their industrial
capabilities; as well as their economic, social, educational and
religious policies; to facilitate a one-world government.
Because of paying off foreign obligations and strengthening foreign
economies, between 1958 and 1968, the amount of gold bullion in the
possession of the U.S. Treasury dropped by 52%. Of the amount remaining,
$12 billion was reserved by law for backing the paper money in
circulation. Our money had been backed by a 25% gold reserve in
accordance to a law that was passed in 1945, but it was rescinded in
1968. The amount of gold slipped from 653.1 million troy ounces in 1957,
to 311.2 million ounces in 1968, which according to the Treasury
Department, was due to sales to foreign banking institutions, sales to
domestic producers, and the buying and selling of gold on the world
market to stabilize prices. This was a loss of 341.9 million troy
ounces. In August, 1971, gold was used only for world trade, because
foreign countries wouldn't accept U.S. dollars. As of November, 1981,
sources had indicated that the gold reserve had dropped to 264.1 million
troy ounces.
Title 31 of the U.S. Code, requires an annual physical inventory of our
gold supply, but a complete audit was never done, so officially, nobody
knows what has occurred. After World War II, America had 70% of the
World's supply of loose gold, but today, we may have less than 7%. Sen.
Jesse Helms seemed to think that the OPEC nations have our gold, while
others believe that 70% of the world's gold supply is being held by the
World Bank, which is dominated by the financial grip of the Rothschilds
and the Rockefellers.
Some years ago, I had been contacted by a gentleman in Michigan, whose
research indicated that counterfeit $5,000 and $10,000 Federal Reserve
Notes had been used to steal U.S. gold reserves. Illegal to own, these
notes are actually checks which are used to transfer ownership of large
amounts of gold without actually moving the gold itself. Using public
records, he found the serial numbers of the bills which were originally
printed, and discovered that there are now more in existence.
It has been reported that 40% (13,000 tons) of the world's gold is five
levels below street level, in a sub-basement of the New York Federal
Reserve Bank, behind a 90-ton revolving door. Some of it is
American-owned, but most is owned by the central banks of other
countries. It is stored in separate cubicles, and from time to time, is
moved from one cubicle to another to satisfy international transactions.
The Destructive Measures of the Federal Reserve
After March, 1964, Silver certificates were no longer convertible to
Silver dollars; and in March, 1968, near the conclusion of the Johnson
Administration, Silver backing of the dollar was removed. On the 1929
series of notes, it read: "Redeemable in gold on demand at the United
States Treasury, or in gold or lawful money at any Federal Reserve
Bank." This was just like the Silver Certificate, which was guaranteed
by a dollar in silver that was on deposit. On the 1934 series of notes,
it read: "This note is legal tender for all debts, public and private,
and is redeemable in lawful money at the United States Treasury, or at
any Federal Reserve Bank." The 1950 series bore the same information,
but reduced it to three lines, and reduced the size of the type. In the
1953 series, the wording was totally removed, although the bottom
portion contained a promise to "pay the bearer on demand." However, in
1963, even that message was removed, and our dollars became nothing more
than worthless pieces of paper because they no longer met the legal
requirements of a note, which meant it had to list an issuing bank, and
amount payable, a payee or 'bearer,' and a time for payment, which was
'on demand.'
Since 1933, the Reserve has been printing too much money, compared to
the declining Gross National Product (GNP). The GNP is the accumulated
values of services and goods produced in the country. If the GNP is 4%,
then the money produced should only be about 5-6%, thus insuring enough
money to keep the goods produced by the GNP in circulation. Additional
social services, which are promised during election year rhetoric to
gain votes, increase the Federal Budget, so more money is printed. Then
the Government will cut the Budget, establish wage and price controls.
The extra money in circulation decreases the value of the dollar, and
prices go up. Simply put, too much money in circulation causes
inflation, and that is what the Reserve is doing, purposely printing too
much money in order to destroy the economy. On the other hand, if they
would stop printing money, our economy would collapse.
The Reserve is responsible for setting the interest rate that member
banks can borrow from the Reserve, thus controlling the interest rates
of the entire country. So, what it boils down to, is that the Federal
Reserve determines the amount of money needed, which is created by the
International Bankers out of nothing. Besides the face value, they
charge the government 3¢ to produce each bill. The Federal government
pays the Reserve in bonds (which are also printed by the Reserve), and
then pay the bonds off at a high rate of interest. That interest will
very soon become the largest item in the Federal Budget.
William McChesney Martin, a member of the Council on Foreign Relations (CFR),
and Chairman of the Federal Reserve (FED) during the 'New Frontier'
years of the Kennedy Administration, testified to the Federal Banking
Committee, that the value of the dollar was being scientifically brought
down each year by 3-3-1/2%, in order to allow wages to go up. The
reasoning behind this, was that the people were being made to think that
they were getting more, when in fact they were actually getting less.
The Congress has also contributed to this process, by approving Federal
Budgets, year after year, which requires the printing of more money to
finance the debt, which, by the end of 2003, was over $6,900,000,000,000
($6.9 trillion). When Wilson was President, the debt was about $1
billion, and in 1974, the debt was about $1 trillion.
In 1937, Rep. Charles G. Binderup of Nebraska, realizing the
consequences of the Federal Reserve System, called for the Government to
buy all the stock, and to create a new Board controlled by Congress to
regulate the value of the currency and the volume of bank deposits, thus
eliminating the FED's independence. He was defeated for re-election.
Others have also tried to introduce various Bills to control the Federal
Reserve: Rep. Goldborough (1935), Rep. Jerry Voorhis of California
(1940, 1943), Sen. M. M. Logan of Kentucky, and Rep. Usher L. Burdick of
North Dakota.
Rep. Wright Patman of Texas (who was the House Banking Chairman until
1975), said in 1952:
"In fact there has never been an independent audit of either the twelve
banks of the Federal Reserve Board that has been filed with the Congress
... For 40 years the system, while freely using the money of the
government, has not made a proper accounting." Patman, said that the
Federal Open Market Committee (who, in addition to the Board of
Governors, decide the country's monetary policy) is "one of the most
secret societies. These twelve men decide what happens in the economy
... In making decisions they check with no one- not the President, not
the Congress, not the people."
Patman also said: "In the United States we have, in effect, two
governments ... We have the duly constituted Government ... Then we have
an independent, uncontrolled and uncoordinated government in the Federal
Reserve System, operating the money powers which are reserved to
Congress by the Constitution." During his career, Patman has sought to
force the FED to allow an independent audit, lessen the influence of the
large banks, shorten the terms of the FED Governors, expose it to
regular Congressional review just like any other Federal agency, and to
have only officials nominated by the President and confirmed by Congress
to be on the Federal Open Market Committee. In 1967, Patman tried to
have them audited, and on January 22, 1971, introduced HR11, which would
have altered its organization, diminishing much of its power. He was
later removed from the Chairmanship of the House Banking and Currency
Committee, which he held for years.
On January 22, 1971, Rep. John R. Rarick of Louisiana introduced HR351:
"To vest in the Government of the United States the full, absolute,
complete, and unconditional ownership of the twelve Federal Reserve
Banks." He said: "The Federal Reserve is not an agency of government. It
is a private banking monopoly." He was later defeated for re-election.
During the 1980's, Rep. Phil Crane of Illinois introduced House
Resolution HR70 that called for an annual audit of the FED (which never
came to a full vote); and Rep. Henry Gonzales of Texas introduced
HR1470, that called for the repeal of the Federal Reserve Act.
The Federal Reserve System has never been audited, and their meetings,
and minutes of those meetings, are not open to the public. They have
repelled all attempts to be audited. In 1967, Arthur Burns, the Chairman
of the Federal Reserve, said that an audit would threaten the
independence of the Reserve.
In 1979, after dismissing Secretary of Treasury, Michael Blumenthal,
President Jimmy Carter offered the position to American Illuminati
chief, David Rockefeller, the CEO of Chase Manhattan Bank, as did Nixon,
but he turned it down. He also turned down the nomination for the
Chairmanship of the Federal Reserve Board. Carter then appointed Paul
Volcker as Chairman. Volcker graduated from Princeton with a degree in
Economics, and from Harvard, with a degree in Public Administration. He
was an economist with the Federal Reserve Bank of New York (1952-57),
worked at the Chase Manhattan Bank (1957-61), was with the U.S. Treasury
Department (1961-65), Deputy Under Secretary for Monetary Affairs
(1963-65), Under Secretary for Monetary Affairs (1969-74), and President
of the New York Federal Reserve Bank (1975-79).
In the Nixon Administration, as the Under Secretary for Monetary Policy
and International Affairs, the executive branch official who works most
closely with the Federal Reserve, he and Treasury Secretary John
Connally helped formulate the policy that took us off the gold standard
in 1971, because of the dwindling gold reserves at Fort Knox. Volcker
was chosen because he was the "candidate of Wall Street." He was a
member of the Trilateral Commission, and a major Rockefeller supporter.
Bert Lance, the Georgia banker and political advisor to Carter who
became his Budget Director, and was later forced to resign, contacted
Gerald Rafshoon, a Carter aide, and said that if Volcker would be
appointed, he would be "mortgaging his re-election to the Federal
Reserve." Lance predicted that he would bring high interest rates and
high unemployment. He was confirmed by the Senate Banking Committee in
August, 1979, replacing Arthur Burns, an Austrian-born economist who was
a CFR member with close ties to the Rockefellers. Volcker was against a
gold-back dollar, and gold being used as a form of currency. He
attempted to tighten the money situation in order to curb the 10% annual
growth in the money supply, and to ease the pressure of loan demand. The
result was a dramatic increase in interest rates, which climbed to
13-1/2% by September, 1979, and then soared to 21-1/2% by December,
1980.
Conjecture could dictate that this economic decline was purposely
engineered to cause the political decline of Carter. In response to the
rising interest rates, Carter said: "As you well know, I don't have
control over the FED, none at all. It's carefully isolated from any
influence by the President or the Congress. This has been done for many
generations and I think it's a wise thing to do." Even though inflation
had skyrocketed to all-time highs, Reagan kept Volcker on. It was
Volcker who started the collapse of the U.S. economy.
During the 1970's, many banks had left the Federal Reserve, and in
December, 1979, Volcker told the House Banking Committee that "300 banks
with deposits of $18.4 billion have quit the FED within the past 4-1/2
years," and that another 575 of the remaining 5,480 member banks, with
deposits of $70 billion, had indicated that they intended to withdraw.
He said that this would curtail their control over the money supply, and
that led Congress, in 1980, to pass the Monetary Control Act, which gave
the Federal Reserve control of all banking institutions, regardless if
they are members or not.
Alan Greenspan, who became the Chairman of the Federal Reserve Board in
1987, is a member of the Council of Foreign Relations. He has a
bachelor's and master's degree, and a doctorate in Economics from New
York University. He met Ayn Rand, the author of Atlas Shrugged, in 1952,
and they became friends. It is from her that he learned that capitalism
"is not only efficient and practical, but also moral." In February,
1995, the seventh increase in the interest rate, within the period of a
year, took place. This put Greenspan in the limelight, as well as the
Federal Reserve. It was very interesting how the media spin doctors
churned out information that totally skirted the issue concerning the
FED's actual role in controlling our economy.
In the mid-1970's, Paper 447, Article 3, from the World Bank, said that
the World economy would be fairly stable until 1980, when it would begin
falling, in domino fashion. On October 29, 1975, the Wall Street Journal
printed a comment by H. Johannes Witteveen, Managing Director of the
United Nation's International Monetary Fund, that the IMF "ought to
evolve into a World Central Bank ... to prevent inflation." Dr. H. A.
Murkline, Director of the International Institute University in Irving,
Texas, wrote in World Oil: 1976 that he projected that the Federal
Government could only hold out till the end of 1981. Dow Theory Letters,
Inc. reported that by 1982, the cost of dealing with the national debt
"would eat up all the government tax money available."
The Robbins Report of January 15, 1978, said: "If Carter introduces
Bancor, which will be the yielding of our dollar to the ECU (European
Currency Unit), this is what will happen: look for hyperinflation and
collapse of all the world's paper money before 1985." Julian Snyder said
in the International Money Line of February, 1978: "The United States is
trying to solve its problem through currency depreciation (debasement)
... it will not work. If the crash does not occur this year, it could be
postponed until 1982."
On March 13, 1979, while meeting at Strasbourg, France, the Parliament
of Europe, which governs the European Economic Community (Common
Market), oversaw the establishment of a new European money system. Known
as the ECU, it was backed by 20% of the participating countries' gold
reserves (about 3,150 tons). What little strength our dollar had, came
from the fact that all nations buying oil from OPEC, had to use U.S.
dollars. Then came the word in March, 1980, from Arab diplomatic sources
at the United Nations that the Chase Manhattan Bank was making plans to
drop the dollar in lieu of the ECU.
Dr. Franz Pick, a well known authority on world currency, said in
December, 1979, in the Silver and Gold Report: "The most serious problem
we face today is the debasement of our currency by the government. The
government will continue to debase the dollar until ... within 12-24,
months it will shrink to 1 cent ... at which time Washington will be
forced to create the new hard currency ... A currency reform is nothing
but a fancy name for state bankruptcy ... A currency reform completes
the expropriation of all kinds of savings ... it will wipe out all
public and private bonds, most pensions; all annuities, and all
endowments."
Against all odds, our economy has continued to hang on, even though
financial analysts have continued to forecast disastrous conditions.
In 1993, Sen. Bob Kerrey (Democrat, NE) promised to support President
Bill Clinton's Budget Plan, if Clinton would appoint a Committee to
study the condition of the American economy. The President established a
32-member bipartisan committee and in August, 1994, they issued their
report. According to the committee's findings, by the year 2012, unless
drastic changes are made, we won't even be able to pay the interest on
the national debt. Knowing this, the federal government has allowed the
trend to continue, almost as if they're trying to run our economy into
the ground. It seems obvious that the destruction of the American
economy has been part of a deliberate plot to financially enslave our
nation.
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