By Jerry Mazza
Intrepid Report
Posted on June 17, 2011
A few days ago, I came upon a New York Times article, Obama Seeks to Win Back Wall St. Cash. The lead-in read, “A few weeks before announcing his re-election campaign, President Obama convened two dozen Wall Street executives, many of them longtime donors, in the White House’s Blue Room.” It wasn’t just to say hello.
Nominally, Obama wanted to get their thoughts on how to fast-track the “economic recovery.” Then he “opened the floor for an hour on touchy issues like hedge fund regulations and the national deficit.” The real deal was making nice to the Streeters he had recently called “fat cats” and whose claws were still out, as if they weren’t ready to swallow this mouse in a gulp before they gave him a dime for lunch.
Coincidentally, I had just finished reading A Study of the Federal Reserve and Its Secrets by the iconic Eustace Clarence Mullins. I thought, had Obama, Harvard lawyer and constitutional scholar, not examined this landmark book and how Wall Street bankers turned former Princeton President Woodrow Wilson into their man. They promised to buy him the presidential election to push, then sign the Federal Reserve Act on December 23, 1913 (when most of the congressional elves had escaped to play with Santa at home). In fact, the bill had been planned and written in secrecy in a private railroad car over 10 days on Jekyll’s Island in Georgia.
The train had sped away from Hoboken, New Jersey, leaving a crowd of chagrined newspapermen waiting for their scoop in the station. The passengers of that mysterious car were almost all bankers, as were for Obama in his Blue Room. Present back then were Frank Vanderlip, president of National City Bank of New York; Henry P. Davidson, senior partner of J. P. Morgan Company; and Charles D. Norton, president of Morgan’s First National Bank of New York. These heavy hitters invited Mr. Paul Moritz Warburg of M. M. Warburg of Hamburg, Germany, the chief German representative of the European banking family, the Rothschilds.
Mr. Warburg would end up being the central author of the entire document that we know today as the Federal Reserve Act. As a partner of Kuhn, Loeb and Company Bank of New York, he knew how the congressmen who were against the formation of A central banking system in the U.S. felt, and he knew they blamed the engineered money panic of 1907 on the New York banking bigwigs and Wall Street speculators. So Warburg threw in Federal along with Reserve Act to give a false sense the U.S. government was involved.
This was contrary to the reality that: 1. the Federal Reserve System would be owned by private bankers (shareholders); 2. that, shortly, said bankers would gain control of the issuing of the nation’s money; 3. the bankers would use the credit of the United States and its people to involve both in foreign events, read wars. Unfortunately, all too soon, all three of those goals were realized. When their initial document was realized, they called in Senator Carter Glass to present the Federal Reserve Act in Congress.
And so the demon was born, despite opposition from Congressman Charles Lindbergh, Sr., of Minnesota, who warned that this document was creating a central banking system. Moreover, this type of banking system had the power to create recessions, depressions, inflation, boom and bust a nation’s economy. And if you know anything about American history since then, it’s done them all. To involve us in the Bolshevik revolution, World War I, the 1929 stock market crash, the two depressions of 1931 and 1937, World War II, and left the US post 9/11 in the War on Terror, in a series of booms and busts, recessions and depressions.
What’s more, the Federal Reserve Act was unconstitutional. The Constitution strictly provides that the U.S. government should both print and coin its own money. It shouldn’t pass that off to this second party, the Federal Reserve, which will print out money in the form of notes payable to them, acting as the lender of our money’s credit to us with interest. Many congressmen saw the outcome, but somehow it was influenced with enough cash spread about to influence the Federal Reserve Act’s passage. The national banks kicked in over $5 million for a propaganda fund to sell and pass the bill. In that time, the Republicans were against the bill, and the Democrats were for it.
As with our time, many congressmen, especially faced with a holiday, did not have the time to read the entire bill by signing day, December 23, 1907. The bill was built around the old fractional lending Ponzi scheme, inherited from the 16th century goldsmiths. For every $10 you had, only $1 dollar (or 10 percent) was needed to be put aside for reserve. They realized that of the gold put into their safes for safekeeping only about 10 to 20 percent was out at any given time. So they could really lend the rest with impunity and collect the interest on all of it. And in effect, this would allow them and subsequently the Fed to generate money out of air, millions, billions, trillions eventually.
The same principle was used without gold and not by goldsmith banks, but with central banks using reserve numbers that could create money out of air from debt. Debt became money by the stroke of a pen, today the keystroke of a computer, to finance wars, revolutions, inflation, deflation, recessions or depressions. Added to gold, the situation had a double whammy for manipulation. The possibilities were endless for contracting or expanding wealth for the effects above. And so it has gone these past 104 years.
In one case among legion, the third paragraph of page 138, written by Emmanuel Goldweiser, director of research for the Federal Reserve Board in 1936, we find: “In the summer of 1936, banks had excess reserves. The Board repeated this action in the spring of 1937, thus ushering in the serious reaction of 1937–38.” Mullins writes, “Immobilizing reserves was the equivalent to extinguishing them, insofar as the available supply of money and credit was concerned, and, as Governor Eccles had testified, extinguishing reserves meant wiping out a basis for issuing money and credit, tightening up the money market, and ushering a business depression.” In fact, the Atlantic Monthly noted, “there was a contraction of credit of two billion dollars.” And so, the board played money and debt god with America’s economic life. Mullins provides a book full of examples, like and far worse than this.
Today, there are 12 central banks, New York being the fountainhead because it’s in the center of the financial fountain raining down or capping money. The board members are in the employ of the Federal Reserve and not the U.S. government. So their fidelity is to those who pay them. These are private credit monopolies for the benefit of themselves and their foreign customers and domestic speculators, not to mention swindlers. These 12 private credit monopolies were foisted on this country in deceit and disloyalty by bankers who came from Europe. They have created a history of financed crime for Americans and people around the world.
So I ask, what is Obama expecting to get on the cuff from the sons and grandsons of these bankers and their companies? They blunted all his efforts to get any real regulation on the books, concerning their fraudulent debt products (CDOs, CDSs, CISs, etc.), or for derivatives and speculation, having suspended the number of items that can be speculated on, and the amount of money that can be speculated with to corner markets on essential products: primarily food items and oil.
They own the bonds and stocks. They pass the laws through their minions that the president signs through his gratitude for their support, just as Wilson did more than a century ago and Obama is seeking to now. Bottom line, the Federal Reserve investors’ increase in their assets went from $143 million dollars in 1913 to 45 billion dollars in 1949 (at the time of Mullins’ writing), yielding a profit of $44,857,000,000. Another 62 years of financial profit adjusted for inflation yields considerably more. Do the math. It boggles my mind as it did Mullins.’
Thus Mullins quotes Bernard Baruch on Page, 156, that “Whatever its leadership, the Federal Reserve Board is committed to tightening its financial dictatorship over the United States. Bernard Baruch testified before Congress that: ‘We have not had a free or competitive economy since the First World War.’ Governor Marriner Eccles testified that we should not see our money market free from the money power’s control in our lifetime.
“The latest statement was made by Governor Mencius Syzmczak of the Federal Reserve Board, who was appointed by Boss Kelly of Chicago to that office. [He] stated in Time Magazine in 1950 that: ‘The more we can accomplish by means of monetary, credit and fiscal policies, the less need there will be for the authoritarian harness of rationing and other direct controls . . . ’”
Mullins responds on Page 157: “The dictatorship cannot be exercised without the control of money and credit. If Congress actually had retained its sovereignty and refused to let Woodrow Wilson and Carter Glass [as in Glass Steagall] hand over the sovereign right of coinage and the issue of our money to private bankers in 1913, the American people today would not stand on the brink of slavery. The Federal Reserve System has been the death of our Constitution, and the end of our liberties. The Federal Reserve Board of Governors, chosen by and working for the powerful international bankers have inflicted catastrophe after catastrophe upon our people. They involved us into two World wars; they have planned and executed two of the worst economic depression we have ever suffered. The American people have been kept in ignorance of the forces working against them. The love of liberty, the innate self-reliance, and the uncompromising individualism of the native American must assert itself against the tyranny of the Federal Reserve Board if we are to renew the American Republic.” Those words are as true today as when he wrote them in 1949.
But Mr. Obama, are you listening? You are sleeping with the devil, to paraphrase the title of Robert Baer’s excellent book on the U.S. and Saudi oil interests. It applies more than equally with the Federal Reserve Board and its Wall Street banksters. You and every American interested in the future of this country should read Mullins’ tract. Know that the concessions of transparency, ethics, and any sense of the common good are not to be gotten amongst the banksters of this world.
As Mullins wrote, “The Federal Reserve System is not Federal; it has no reserves; and it is not a system but rather, a criminal syndicate. It is the product of syndicalist activity of an international consortium of dynastic families comprising what the author terms “The World Order” The Federal Reserve System is a central bank operating in the United States. Although the student will find no such definitions of a central bank in the textbooks of any university, the author has defined a central bank as follows: it is the dominant financial power of the country which harbors it. It is entirely private-owned, although it seeks to give the appearance of a governmental institution. It has the right to print and issue money, the traditional prerogative of monarchs. It is set up to provide financing for wars. It functions as a money monopoly having total power over all the money and credit of the people.”
Coda
Eustace Clarence Mullins, populist American political writer, artist, biographer, was a friend of the great American poet, Ezra Pound, who originally asked Mullins to write this amazing book, suggesting a course of research and paying him ten dollars a week. The central theme of Mullin’s book is how the Federal Reserve allows bankers to monetize debt, that is to create money out of air by simple book entry, and thus to create enormous leverage over everyone else.
Eustace Clarence Mullins, Jr., was born on March 9, 1923 and died in February 2, 2010, at age 87. He lived to see 9/11, the War on Terror, the crashes of 2008–2009, and the wars that followed, which created the largest national debt in history, reviving his worst dream for America, their financing by the Fed and the banksters. He was educated at Washington and Lee University, New York University, the University of North Dakota and the Institute of Contemporary Arts in Washington, D.C.
Mullins was a researcher at the Library of Congress in 1950. Shortly after his first book came out in 1952, he was discharged by the Library of Congress. As a nascent author of many books, he befriended the great American poet Ezra Pound, who encouraged him to write Mullins on the Federal Reserve, considering it a great discovery of the age. In 1983, Mullins updated his book with its present title, The Secrets of the Federal Reserve.
Ezra Pound, who was arrested for his anti-war, anti-usury activities, wrote his Pisan Cantos in a steel cage in the American Disciplinary Training Center, shades of Guantanamo, in 1945, sleeping on a concrete floor, looking as he said to his muse, la bella Luna. He was brought in by Italian partisans to the allies who locked him up, charging him with speechifying for the fascists, as he knocked usury, credit, and bankers, which was labeled “treason” and “anti-Semitic;” not “free speech” as Pound wrote back, pleading his case to US courts. Nevertheless, he still won a coveted Bolingen Prize for poetry in 1948.
A nervous breakdown brought him a pup tent, light, typewriter, cot, some books, a return to his work on Confucius’ Analects. It revived his memories of old times, Paris, Joyce, Hem, Stein, and Eliot. In 1958, he was declared insane, incapable of standing trial and sent to live with his daughter Mary in Tyrol, soon returning to Rapallo, Venice, crazy [as a fox] but free to publish Cantos 110 thru 116 of his epic work. Turning into Odysseus Pound, the 20th Century’s stellar poet, hero of the universe, he wrote . . .
“I have brought the great ball of crystal;
Who can lift it?
Can you enter the great acorn of light?
But the beauty is not the madness
Tho’ my errors and wrecks lie about me.
And I am not a demigod,
I cannot make it cohere.”
In fact, can any of us make the crimes of the banksters and the Fed “cohere” with America’s ideals for life, liberty and the pursuit of happiness?
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