Former Assistant Secretary of Housing under George H.W. Bush Catherine Austin Fitts blows
the whistle on how the financial terrorists have deliberately imploded the US economy and transferred gargantuan
amounts of wealth offshore as a means of sacrificing the American middle class. Fitts documents how trillions of
dollars went missing from government coffers in the 90's and how she was personally targeted for exposing the
The Looting Of America
Former Assistant Secretary of Housing under George H.W. Bush Catherine Austin Fitts blows the
whistle on how the financial terrorists have deliberately imploded the US economy and transferred gargantuan
amounts of wealth offshore as a means of sacrificing the American middle class. Fitts documents how trillions of
dollars went missing from government coffers in the 90's and how she was personally targeted for exposing the
Assistant Secretary of Housing under George H.W. Bush Catherine Austin Fitts blows the whistle on how the financial
terrorists have deliberately imploded the US economy and transferred gargantuan amounts of wealth offshore as a
means of sacrificing the American middle class. Fitts documents how trillions of dollars went missing from
government coffers in the 90's and how she was personally targeted for exposing the fraud.
Fitts explains how every dollar of debt issued to service every war,
building project, and government program since the American Revolution up to around 2 years ago - around $12
trillion - has been doubled again in just the last 18 months alone with the bank bailouts. "We're literally
witnessing the leveraged buyout of a country and that's why I call it a financial coup d'état, and that's what the
bailout is for," states Fitts.
Massive amounts of financial capital have been sucked out the United
States and moved abroad, explains Fitts, ensuring that corporations have become more powerful than governments,
changing the very structure of governance on the planet and ensuring we are ruled by private corporations. Pension
and social security funds have also been stolen and moved offshore, leading to the end of fiscal responsibility and
sovereignty as we know it.
Fitts explained how when she was in government she tried to encourage
the creation of small businesses, new jobs and new skills to compete in a globalized world otherwise the American
middle class was toast, only to be forced out by the feds using dirty tricks. The elite instead wanted Americans to
take on more credit card, mortgage and auto debt that corporations and insurers knew they couldn't afford, while
quietly moving their jobs abroad in the meantime.
This is a key interview in understanding precisely how the financial
collapse was deliberately planned from the outset as a means of eviscerating the American middle class and we
encourage all our subscribers to watch it now at Prison Planet.tv by visiting the "video reports" section. Not a
member? Pleaseclick here
to subscribe and get instant access to this interview, along with
thousands of hours of material, including daily access to the live video stream and video archives of The Alex
The American Dream is being
systematically destroyed right in front of our eyes and most Americans don’t even realize what is happening.
In the old days, if you were a hard worker and you played by the rules you could always find a good job.
That good job would enable you to buy a house, buy at
least one car and support a family. It would also enable you to take a couple of vacations each year
and buy some nice things for your family. After working for 30 or 40 years you would look forward to
a comfortable retirement. But these days fewer and fewer Americans are able to enjoy the American
Dream. Once upon a time, the United States had the largest and most prosperous middle class in the
history of the world, but now that is changing at a breathtaking pace. Our economy is not producing
nearly enough jobs for all of us anymore, and an increasing percentage of the jobs that are being produced
pay 10 dollars an hour or less. The cost of living continues to rise steadily every single year
while wages do not. Close to half of all American workers are living month to month, and many
American families have gone deep into debt as they struggle to pay the bills. Millions more
Americans are falling into poverty each year and dependence on the government is at an all-time
high. Something is fundamentally wrong with our economy. It is not working the way that it
used to, and the middle class is being absolutely shredded. Most American families are finding it
harder and harder to make it through each passing year, and unless a miracle happens things are going to
continue to get even harder.
The following are 22 statistics that prove that the American Dream is being
#1 As the economy has
declined, the number of Americans living month to month has soared. At this point, millions upon millions of
Americans are living without any financial cushion whatsoever. If you can believe it, one recent survey found
that28 percent of all
Americans do not have a single penny saved for emergencies. Another survey found
that 42 percent of all
American workers are currently living paycheck to paycheck.
#2 Thanks to horribly
oppressive regulations, red tape and taxes, it is incredibly difficult to run a successful small business in
America today. According to the Christian Science Monitor, more than half of all small business owners in America cannot even afford to put food on the
table from their small business earnings….
A shocking figure from the Wave survey relates to how well the business
owners were able to meet their basic needs through their business. An incredible 52% of American small business
owners can’t put food on the table through the earnings from their business over the past twelve
Another recent survey found that 23 percent of all
small business owners have gone an entire year without pay.
#3 In recent years U.S.
families have experienced an astounding decline in wealth. According to the Federal Reserve, the median net
worth of families in the United States declined “from $126,400 in 2007 to $77,300 in 2010“.
#4 The U.S. economy is
not producing nearly enough jobs for all of us at this point. For example, it was reported
that 20,000 people applied for just 877 jobs at a Hyundai plant in Montgomery, Alabama earlier this
year. Sadly, the official U.S. unemployment rate has been above 8 percent for
40 months in a row, and this is supposed to be “the recovery”.
#5 Eight million
Americans have “left the labor force” since the recession supposedly ended. If those Americans were added
back into the unemployment figures, the unemployment rate would be somewhere up around 12 percent.
#6 Corporate profits as
a percentage of GDP are at an all-time high.
Meanwhile, wages as a percentage of GDP are near anall-time low.
#7 The United States
was once ranked #1 in the world in GDP per capita. Today we have slipped to #12.
#8 Just paying for the
basics is becoming increasingly difficult for many Americans. For example, there are
now 20.2 million Americans that spend more than half of their incomes on housing. That represents a 46
percent increase from 2001.
#9 The average American
household spent approximately $4,155 on gasoline
during 2011, and electricity bills in the U.S. have risen faster than the overall rate of
inflation for five years in a row.
#10 Health insurance
continues to become more expensive. Health insurance costs have risen by 23 percent since
Barack Obama became president. According to the Bureau of Economic Analysis, health care costs accounted for
just 9.5% of all personal consumption back in 1980. Today they account for
#11 As the cost of
living goes up, wages continue to stagnate or even fall in many areas of the country. Sadly, this is part of
a long-term trend. According to one study, between 1969 and 2009 the median wages earned by American men
between the ages of 30 and 50 declined by 27 percent after
you account for inflation.
#12 The percentage of
low paying jobs just continues to increase. At this point, one out of every four American workers has a job that pays $10 an hour or less. If that sounds like a
high figure, that is because it is. Today, the United States actually has a higher percentage of
workers doing low wage work than any other major industrialized nation does.
#13 Over the last
several decades, the debt burdens being taken on by average Americans have absolutely exploded. All of this
debt is making things incredibly difficult on American families. The following is from a
recent CNN article….
#14 During this time of
the year, there are large numbers of new college graduates entering the work force. Unfortunately, there are
not nearly enough jobs for all of them. In fact, approximately 53 percent of all
U.S. college graduates under the age of 25 were either unemployed or underemployed last year.
#15 Many young adults
have found that they can’t make it on their own at all in this economy. Today,
approximately 25 million American
adults are living with their parents.
#16 Wealth in this
country is becoming highly concentrated in fewer and fewer hands. Today, the wealthiest 1 percent of all
Americans own more wealth than the bottom 95 percent combined.
#17 Increasingly, our
country is being divided into “two Americas“. According to Forbes,
the 400 wealthiest Americans now have more wealth than the bottom 150 million Americans combined.
#18 The rise in poverty
is hitting children particularly hard. If you can believe it, the poverty rate for children living in the
United States is now 22 percent. Large
numbers of children in this country would go hungry without assistance. At this point,
approximately one-fourth of all
American children are enrolled in the food stamp program.
#19 The more money the
government spends on poverty, the more poverty seems to increase. The federal government spent about 80
billion dollars on the food stamp program last year, but they can’t even tell us how that money is being spent.
#20 While Barack Obama
has been president, the number of Americans on food stamps has increased from 32 million to 46 million. But
the Obama administration has decided that is not enough so they are spending taxpayer money on ads that will encourage even more Americans to go on food stamps….
The U.S. Department of Agriculture has been running radio ads for the past
four months encouraging those eligible to enroll. The campaign is targeted at the elderly, working poor, the
unemployed and Hispanics.
The department is spending between $2.5 million and $3 million on paid
spots, and free public service announcements are also airing. The campaign can be heard in California, Texas,
North Carolina, South Carolina, Ohio, and the New York metro area.
#21 As the middle class
shrinks, the ranks of the poor continue to expand. Sadly, at this point 48 percent of all
Americans are either considered to be “low income” or are living in poverty.
#22 More Americans are
becoming dependent on the government than ever before. According to an article in the Wall Street
Journal, 49.1 percent of all
Americans live in a home where at least one person receives financial benefits from the government.
The Waste List: 66 Crazy Ways
That The U.S. Government Is Wasting Your Hard-Earned Money
By Michael Snyder, on June 20th, 2013
Why did the U.S. government spend 2.6 million dollars to
train Chinese prostitutes to drink responsibly? Why did the U.S. government spend $175,587 "to determine if cocaine
makes Japanese quail engage in sexually risky behavior"? Why did the U.S. government spend nearly a million dollars
on a new soccer field for detainees being held at Guantanamo Bay? This week when I saw that the IRS was about to
pay out 70 million dollars in bonuses to their employees and that the U.S. government was going to be leaving 7
billion dollars worth of military equipment behind in Afghanistan, it caused me to reflect on all of the other
crazy ways that the government has been wasting our money in recent years. So I decided to go back through my
previous articles and put together a list. I call it "The Waste List". Even though our politicians insist that
there is very little that can still be cut out of the budget, the truth is that the federal budget is absolutely
drowning in pork. The following are 66 crazy ways that the U.S. government is wasting your hard-earned money...
#1 The IRS is about to pay out 70 million dollars in bonuses to employees even though discretionary bonuses are
supposed to be cancelled due to the sequester.
#2 According to the Washington Post, the U.S. government is going to leave 7 billion dollars worth of military equipment behind in Afghanistan.
#3 It is being projected that the trip that the Obamas will be making to Africa will cost
U.S. taxpayers $100,000,000.
#4 The NIH plans to spend $509,840 on a study that "will send text messages in 'gay lingo' to methamphetamine
addicts to try to persuade them to use fewer drugs and more condoms."
#5 The National Science Foundation has given $384,949 to Yale University to do a study on “Sexual Conflict, Social Behavior and the
Evolution of Waterfowl Genitalia”. Try not to laugh, but much of this research involves examining and measuring
the reproductive organs of male ducks.
#6 The IRS spent $60,000 on a film parody of “Star Trek” and a film parody of “Gilligan’s Island”.
Internal Revenue Service employees were the actors in the two parodies, so as you can imagine the acting was
#7 The NIH has given $1.5 million to Brigham and Women’s Hospital in Boston, Massachusetts to study why
“three-quarters” of lesbians in the United States are overweight and why most gay males are not.
#8 The NIH has also spent $2.7 million to study why lesbians have more “vulnerability to hazardous drinking”.
#9 The U.S. government is giving sixteen F-16s and 200 Abrams tanks to the Muslim
Brotherhood in Egypt even though the new president of Egypt, Mohammed Morsi (a member of the Muslim Brotherhood),
constantly makes statements such as the following…
“Dear brothers, we must not forget to nurse our children and grandchildren on hatred towards those Zionists
and Jews, and all those who support them”
#10 During 2012, the salaries of Barack Obama’s three climate change advisers combined
came to a grand total of more than $370,000.
#11 Overall, 139 different White House staffers were making at least $100,000 during 2012, and there were 20 staffers that made the maximum of
#12 Amazingly, U.S. taxpayers spend more than 1.4 billion dollars a year on the Obamas. Meanwhile,
British taxpayers only spend about 58 million dollars on the entire royal family.
#13 During 2012, $25,000 of federal money was spent on a promotional tour for the Alabama Watermelon
#14 The U.S. government spent $505,000 “to promote specialty hair and beauty products for cats and dogs” in 2012.
#15 NASA spends close to a million dollars a year developing a menu of food for a manned mission to
Mars even though it is being projected that a manned mission to Mars is still decades away.
#16 During 2012, the federal government spent 15 million dollars to help the Russians recruit nuclear scientists.
#17 Over the past 15 years, a total of approximately $5.25 million has been spent on hair care services for the U.S. Senate.
#18 The U.S. government spent 27 million dollars to teach Moroccans how to design and make pottery in 2012.
#19 At a time when we have an epidemic of unemployment in
the United States, the U.S. Department of Education is spending $1.3 million to “reduce linguistic, academic, and employment barriers for skilled and
low-skilled immigrants and refugees, and to integrate them into the U.S. workforce and professions.”
#20 The federal government still sends about 20 million dollars a year to the surviving family members of veterans of World War I,
even though World War I ended 94 years ago.
#21 The U.S. government is spending approximately 3.6 million dollars a year to support the lavish lifestyles of former presidents such
as George W. Bush and Bill Clinton.
#22 During fiscal 2012, the National Science Foundation gave researchers at Purdue
University $350,000. They used part of that money to help fund a study that discovered that if golfers
imagine that a hole is bigger it will help them with their putting.
#26 If you can believe it, $10,000 of U.S. taxpayer money was actually used to purchase talking urinal cakes up in
#27 When Joe Biden and his staff took a trip to London, the hotel bill cost U.S. taxpayers
#28 Joe Biden and his staff also stopped in Paris for one night. The hotel bill for that
one night came to $585,000.50.
#29 If you can believe it, close to 15,000 retired federal employees are currently collecting federal pensions for
life worth at least $100,000 annually. That list includes such names as Newt Gingrich, Bob Dole, Trent Lott,
Dick Gephardt and Dick Cheney.
#30 The U.S. Department of Agriculture has spent $300,000 to encourage Americans to eat caviar.
#31 The National Institutes of Health recently gave $666,905 to a group of researchers that is conducting a study on the benefits of
watching reruns on television.
#32 The National Science Foundation has given 1.2 million dollars to a team of “scientists” that is spending part of that money on a
study that is seeking to determine whether elderly Americans would benefit from playing World of Warcraft or
#33 The National Institutes of Health recently gave $548,731 to a team of researchers that concluded that those that drink heavily in their
thirties also tend to feel more immature.
#34 The National Science Foundation recently spent $30,000 on a study to determine if “gaydar” actually exists. This is the conclusion
that the researchers reached at the end of the study….
“Gaydar is indeed real and… its accuracy is driven by sensitivity to individual facial
#35 In 2011, the National Institutes of Health spent $592,527 on a study that sought to figure out once and for all why chimpanzees throw
#36 The National Institutes of Health has spent more than 5 million dollars on a website called Sexpulse that is targeted at “men who
use the Internet to seek sex with men”. According to Fox News, the website “includes pornographic images of homosexual sex as well as naked
and scantily clad men” and features “a Space Invaders-style interactive game that uses a penis-shaped blaster to
shoot down gay epithets.”
#37 The General Services Administration spent $822,751 on a “training conference” for 300 west coast employees at the M Resort and
Casino in Las Vegas. The following is how the Washington Post described some of the wasteful expenses that happened during this
Among the “excessive, wasteful and in some cases impermissable” spending the inspector general
documented: $5,600 for three semi-private catered in-room parties and $44 per person daily breakfasts; $75,000
for a “team-building” exercise — the goal was to build a bicycle; $146,000 on catered food and drinks; and
$6,325 on commemorative coins in velvet boxes to reward all participants for their work on stimulus projects.
The $31,208 “networking” reception featured a $19-per-person artisanal cheese display and $7,000 of sushi. At
the conference’s closing-night dinner, employees received “yearbooks” with their pictures, at a cost of
You can see some stunning pictures of GSA employees living the high life in Las Vegas right here.
#38 Do you remember when credit rating agency Egan Jones downgraded U.S. government debt
from AA+ to AA? Well, someone in the federal government apparently did not like that at all.
According to Zero Hedge, the SEC planned to file charges against Egan Jones for “misstatements” on a
regulatory application with the SEC.
Normally, the SEC does not go after anyone. After all, when is the last time a major banker went to prison?
No, the truth is that the SEC is usually just a huge waste of taxpayer money. According to ABC News, one investigation found that 17 senior SEC officials had been regularly viewing
pornography while at work. While the American people were paying their salaries, this is what senior SEC
officials were busy doing…
One senior attorney at SEC headquarters in Washington spent up to eight hours a day accessing Internet
porn, according to the report, which has yet to be released. When he filled all the space on his government
computer with pornographic images, he downloaded more to CDs and DVDs that accumulated in boxes in his
An SEC accountant attempted to access porn websites 1,800 times in a two-week period and had 600
pornographic images on her computer hard drive.
Another SEC accountant used his SEC-issued computer to upload his own sexually explicit videos onto porn
websites he joined.
And another SEC accountant attempted to access porn sites 16,000 times in a single month.
#39 According to InformationWeek, the federal government is spending “millions of dollars” to train Asian call center workers.
#40 If you can believe it, the federal government has actually spent $750,000 on a new soccer field for detainees held at Guantanamo Bay.
#41 The U.S. Agency for International Development spent 10 million dollars to create a version of “Sesame Street” for Pakistani television.
#42 The Obama administration has plans to spend between 16 and 20 million dollars to help students from Indonesia get master’s degrees.
#43 The National Science Foundation spent $198,000 on a University of California-Riverside study that explored “motivations,
expectations and goal pursuit in social media.” One of the questions the study sought an answer to was the
following: “Do unhappy people spend more time on Twitter or Facebook?”
#44 In 2011, $147,138 was given to the American Museum of Magic in Marshall, Michigan. Their best
magic trick is making U.S. taxpayer dollars disappear.
#45 The federal government recently spent $74,000 to help Michigan “increase awareness about the role Michigan plays in the
production of trees and poinsettias.”
#46 In 2011, the federal government gave $550,000 toward the making of a documentary about how rock and roll contributed to the
fall of the Soviet Union.
#47 The National Institutes of Health has contributed $55,382 toward a study of “hookah smoking habits” in the country of Jordan.
#48 The federal government gave $606,000 to researchers at Columbia University to study how heterosexuals use the
Internet to find love.
#49 A total of $133,277 was recently given to the International Center for the History of Electronic
Games for video game preservation. The International Center for the History of Electronic Games says that it
“collects, studies, and interprets video games, other electronic games, and related materials and the ways in
which electronic games are changing how people play, learn, and connect with each other, including across
boundaries of culture and geography.”
#50 The federal government has given approximately $3 million to researchers at the University of California at Irvine to
fund their "research" into video games such as World of Warcraft.
#51 In 2011, the National Science Foundation gave one team of researchers $149,990 to create a video game called “RapidGuppy” for cell phones and other mobile
#52 In 2011, $936,818 was spent developing an online soap opera entitled “Diary of a Single Mom”.
The show “chronicles the lives and challenges of three single mothers and their families trying to get ahead
despite obstacles that all single mothers face, such as childcare, healthcare, education, and finances.”
#53 Last year, the federal government spent $96,000 to buy iPads for kindergarten students in Maine.
#54 The U.S. Postal Service once spent $13,500 for a single dinner at Ruth’s Chris Steakhouse.
#55 In 2011, the Air Force Academy completed work on an outdoor worship area for pagans
and Wiccans. The worship area consists of “a small Stonehenge-like circle of boulders with [a] propane fire pit”
and it cost $51,474 to build. The worship area is “for the handful of current or future cadets
whose religions fall under the broad category of ‘Earth-based’, which includes Wiccans, druids and pagans.” At
this point, that only includes 3 current students at the Air Force Academy.
#56 The National Institutes of Health once gave researchers $400,000 to study why gay men in Argentina engage in risky sexual behavior when they
#57 The National Institutes of Health once gave researchers $442,340 to study the behavior of male prostitutes in Vietnam.
#58 The National Institutes of Health once spent $800,000 in “stimulus funds” to study the impact of a “genital-washing program” on men
in South Africa.
#59 The National Science Foundation recently spent $200,000 on a study that examined how voters react when politicians change their
stances on climate change.
#60 The federal government recently spent $484,000 to help build a Mellow Mushroom pizzeria in Arlington, Texas.
#61 At this point, China is holding over a trillion dollars of U.S. government debt. But
that didn’t stop the United States from sending 17.8 million dollars in foreign aid to China in 2011.
#62 The U.S. Department of Agriculture gave the largest snack food maker in the world
(PepsiCo Inc.) a total of 1.3 million dollars in corporate welfare that was used to help build "a Greek yogurt factory in New York."
#63 The National Science Foundation recently gave a whopping $697,177 to a New York City-based theater company to produce a musical about climate
#64 The federal government once shelled out $2.6 million to train Chinese prostitutes to drink responsibly.
#65 The U.S. Department of Agriculture once handed researchers at the University of New
Hampshire $700,000 to study methane gas emissions from dairy cows.
#66 The federal government has spent $175,587 "to determine if cocaine makes Japanese quail engage in sexually risky
Century of Enslavement:
The History of The Federal
What is the Federal Reserve system? How did it come
into existence? Is it part of the federal government? How does it create money? Why is the public kept in the dark
about these important matters? In this feature-length documentary film, The Corbett Report explores these important
question and pulls back the curtain on America's central bank.
Click here to download an mp3
audio version of this documentary.
Click here to download an mp4
video version of this documentary.
All our lives we’ve been told that economics is boring. It’s dull. It’s not worth the time it takes to
understand it. And all our lives, we’ve been lied to.
War. Poverty. Revolution. They all hinge on economics. And economics all rests on one key concept: money.
Money. It is the economic water in which we live our lives. We even call it ‘currency’; it flows around us,
carries us in its wake. Drowns those who are not careful.
We use it every day in nearly every transaction we conduct. We spend our lives working for it, worrying about
it, saving it, spending it, pinching it. It defines our social status. It compromises our morals. People are
willing to fight, die and kill for it.
But what is it? Where does it come from? How is it created? Who controls it? It is a remarkable fact that, given
its central importance in our lives, not one person in a hundred could answer such basic questions about money
Interviewer: So if you were planning a family, you’d want to know where babies come
from. And this is a lot about banking. So let me ask you: where does money come from?
Interviewee 1: Where does the money come from? The government prints it. It’s printed
Interviewer: How is new money created?
Interviewee 2: By labor. People work and produce wealth, and the money is supposed to
match that wealth.
Interviewee: Where does money come from?
Interviewee 3: Well I have a pretty different outlook on money. It actually comes
from, like, trees, right?
But why is this? How could we be so ignorant about a topic of such importance? “Where does money come from?” is
a basic, childlike question. So why is our only response the childlike answer, meant as a joke: “It grows on
Such a profound state of ignorance could not come about naturally. From the time we are children, we are curious
about the world and eager to learn about the way it works. And what could lead to a better understanding of the way
the world works than a knowledge of money, its creation and destruction? Yet discussion of this topic is
fastidiously avoided in our school years and ignored in our daily life. Our monetary ignorance is artificial, a
smokescreen that has been erected on purpose and perpetrated with the help of complicated systems and insufferable
But it doesn’t take an economist to understand the importance of money. Deep down we all know that the wars, the
poverty, the violence we see around us hinges on this question of money. It seems like a thousand piece jigsaw
puzzle just waiting to be solved. And it is.
The puzzle pieces, taken together, create an image of the Federal Reserve, America’s central bank and the heart
of the country’s banking system. Despite its central importance to the economy, relatively few have heard of it,
and fewer still know what it is, despite the bank’s attempts at self-description:
Our economy runs on a complex system of exchange of goods and services in which money plays a key part.
Coin, currency, savings, and checking accounts; the overall supply of money is managed by the Federal Reserve.
Money is the medium through which economic exchanges take place, and money as a standard of value helps us to
set prices for goods and services. The job of managing money–monetary policy–is to preserve the purchasing
power of the dollar while ensuring that a sufficient amount of money is available to promote economic
The Federal Reserve also promotes the safety and soundness of the institutions where we do our banking. It
ensures that the mechanisms by which we make payments, whether by cash, cheque, or electronic means, operates
smoothly and efficiently.
And in its fiscal role acts as the banker for the United States government.
Now these duties comprise the major responsibilities of our central bank.
But in order to understand the Federal Reserve, we must first understand its origins and context. We must
deconstruct the puzzle.
The first piece of that puzzle lies here, in the White House. This is where the Federal Reserve Act, then known
as the Currency Bill, was signed into law after passing the House and Senate in late December, 1913.
“The Christmas spirit pervaded the gathering. While the ceremony was a little less impressive than that of the
signing of the Tarriff act on Oct. 3 last in the same room, the spectators were much more enthusiastic and seized
every occasion to applaud.”
There in the White House that fateful December evening, President Wilson signed away the last veneer of control
over the American money supply to a cartel; a well-organized gang of crooks so successful, so cunning, so
well-hidden that even now, a century later, few know of its existence, let alone the details of its operations. But
those details have been openly admitted for decades.
Of course, just as we have been taught to find economics boring, we have been taught that this story is boring.
This is the way the Federal Reserve itself tells it:
The United States was facing severe financial problems. At the turn of the century, most banks were issuing
their own currency called “bank notes.” The trouble was, currency that was good in one state was sometimes
worthless in another. People began to lose confidence in their money, since it was only as sound as the bank
that issued it. Fearful that their bank might go out of business, they rushed to exchange their bank notes for
gold or silver. By attempting to do so, they created the panic of 1907.
During the panic, people streamed to the banks and demanded their deposits. The banks could not meet the
demand; they simply did not have enough gold and silver coin available. Many banks went under. People lost
millions of dollars, businesses suffered, unemployment rose, and the stability of our economic system was again
Well, this couldn’t go on. If the country was going to grow and prosper, some means would have to be found
to achieve financial and economic stability.
To prevent financial panics like the one in 1907, President Woodrow Wilson signed The Federal Reserve Act
into law in 1913.
But this is history as told by the victors: a revisionist vision in which the creation of a central bank to
control the nation’s money supply is merely a boring historical footnote, about as important as the invention of
the zipper or an early 20th century hoola-hoop craze. The truth is that the story of the secret banking conclave
that gave birth to that Federal Reserve Act is as exciting and dramatic as any Hollywood screenplay or detective
novel yarn, and all the more remarkable for the fact that it is all true.
We pick up the story, appropriately enough, under cover of darkness. It was the night of November 22, 1910, and
a group of the richest and most powerful men in America were boarding a private rail car at an unassuming railroad
station in Hoboken, New Jersey. The car, waiting with shades drawn to keep onlookers from seeing inside, belonged
to Senator Nelson Aldrich, the father-in-law of billionaire heir to the Rockefeller dynasty, John D. Rockefeller,
Jr. A central figure on the influential Senate Finance Committee where he oversaw the nation’s monetary policy,
Aldrich was referred to in the press as the “General Manager of the Nation.” Joining him that evening was his
private secretary, Shelton, and a who’s who of the nation’s banking and financial elite: A. Piatt Andrew, the
Assistant Treasury Secretary; Frank Vanderlip, President of the National City Bank of New York; Henry P. Davison, a
senior partner of J.P. Morgan Company; Benjamin Strong, Jr., an associate of J.P. Morgan and President of Bankers
Trust Co., and Paul Warburg, heir of the Warburg banking family and son-in-law of Solomon Loeb of the famed New
York investment firm, Kuhn, Loeb & Company.
The men had been told to arrive one by one after sunset to attract as little attention as possible. Indeed,
secrecy was so important to their mission that the group did not use anything but their first names throughout the
journey so as to keep their true identities secret even from their own servants and wait staff. The movements of
any one of them would have been reason enough to attract the attention of New York’s voracious press, especially in
an era where banking and monetary reform was seen as a key issue for the future of the nation; a meeting of all of
them, now that would surely have been the story of the century. And it was.
Their destination? The secluded Jekyll Island off the coast of Georgia, home to the prestigious Jekyll Island
Club whose members included the Morgans, Rockefellers, Warburgs and Rothschilds. Their purpose? Davison told
intrepid local newspaper reporters who had caught wind of the meeting that they were going duck hunting. But in
reality, they were going to draft a reform of the nation’s banking industry in complete secrecy.
What happened is the banks decided that since there was going to be legislation anyway to control their
industry, that they wouldn’t just sit back and wait and see what happened and cross their fingers that it would
be OK. They decided to do what so many cartels do today: they decided to take the lead. And they would be the
ones calling for regulations and reform.
They like the word “reform.” The American people are suckers for the word “reform.” You just put that into
any corrupt piece of legislation, call it “reform” and people say “Oh, I’m all for ‘reform’,” and so they vote
for it or accept it.
So that’s what they were doing. They decided, “We will ‘reform’ our own industry.” In other words, “We will
create a cartel and we will give the cartel the power of government. We’ll take our cartel agreement so we can
self-regulate to our advantage and we’ll call it ‘The Federal Reserve Act.’ And then we’ll take this cartel
agreement to Washington and convince those idiots there to pass it into law.”
And that basically was the strategy. It was a brilliant strategy. Of course we see it happening all the
time, certainly in our own day today we see the same thing happened in other cartelized industries. Right now
we’re watching it unfold in the field of healthcare, but at that time it was banking, alright?
And so the banking cartel wrote their own rules and regulations, called it “The Federal Reserve Act,” got it
passed into law, and it was very much to their liking because they wrote it. And in essence what they had
created was a set of rules that made it possible for themselves to regulate their industry, but they went even
beyond that. In fact, it’s clear to me when I was reading their letters and their conversation at the time, and
the debates, that they never dreamed that Congress would go along and also give them the right to issue the
nation’s money supply. Not only were they now going to regulate their own industry, which is what they started
out as wanting to do, but they got this incredible gift that they didn’t dream would be given to them (although
they were negotiating for it), and that was that Congress gave them the authority to issue the nation’s money.
Congress gave away the sovereign right to issue the nation’s money to the private banks.
And so all of this was in The Federal Reserve Act, and the American people were joyous because they were
told, and they were convinced, that this was finally a means of controlling this big creature from Jekyll
Amazingly enough, they were successful, not just in conspiring to write the legislation that would eventually
become the Federal Reserve Act, but in keeping that conspiracy a secret from the public for decades. It was first
reported on in 1916 by Bertie Charles Forbes, the financial writer who would later go on to found Forbes magazine,
but it was never fully admitted until a full quarter century later when Frank Vanderlip wrote a casual admission of
the meeting in the February 9, 1935
edition of The Saturday Evening Post:
“I was as secretive—indeed, as furtive—as any conspirator.[…]I do not feel it is any exaggeration to speak of
our secret expedition to Jekyll Island as the occasion of the actual conception of what eventually became the
Federal Reserve System.”
Over the course of their nine days of deliberation at the Jekyll Island club, they devised a plan so
overarching, so ambitious, that even they could scarcely imagine that it would ever be passed by congress. As
Vanderlip put it,
“Discovery [of our plan], 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.”
So what, precisely, did this conclave of conspirators devise at their Jekyll Island meeting? A plan for a
central banking system to be owned by the banks themselves, a system which would organize the nation’s banks into a
private cartel that would have sole control over the money supply itself. At the end of their nine day meeting, the
bankers and financiers went back to their respective offices content in what they had accomplished. The details of
the plan changed between its 1910 drafting and the eventual passage of the Federal Reserve Act, but the essential ideas were
But ultimately, this scene on Jekyll Island, too, is just one piece of a larger puzzle. And like any other
puzzle piece, it has to be seen in its wider context for the bigger picture to become visible. To understand the
other pieces of the puzzle and their importance in the creation of the Federal Reserve, we have to travel backward
The story begins in late 17th century Europe. The Nine Years’ War is raging across the continent as Louis XIV of
France finds himself pitted against much of the rest of the continent over his territorial and dynastic claims.
King William III of England, devastated by a stunning naval defeat, commits his court to rebuilding the English
navy. There’s only one problem: money. The government’s coffers have been exhausted by the waging of the war and
William’s credit is drying up.
A Scottish banker, William Paterson, has a banker’s solution: a proposal “to form a company to lend a million
pounds to the Government at six percent (plus 5,000 “management fee”) with the right of note issue.” By 1694 the
idea has been slightly revised (a 1.2 million pound loan at 8 percent plus 4000 for management expenses), but it
goes ahead: the magnanimously titled Bank of England is created.
The name is a carefully constructed lie, designed to make the bank appear to be a government entity. But it is
not. It is a private bank owned by private shareholders for their private profit with a charter from the king that
allows them to print the public’s money out of thin air and lend it to the crown. What happens here at the birth of
the Bank of England in 1694 is the creation of a template that will be repeated in country after country around the
world: a privately controlled central bank lending money to the government at interest, money that it prints out of
nothing. And the jewel in the crown for the international bankers that creates this system is the future economic
powerhouse of the world, the United States.
In many important respects, the history of the United States is the history of the struggle of the American
people against the bankers that wish to control their money. By the 1780s, with colonies still fighting for
independence from the crown, the bankers will get their wish.
In 1781 the United States is in financial turmoil. The Continental, the paper currency issued by the Continental
Congress to pay for the war, has collapsed from overissue and British
counterfeiting. Desperate to find a way to finance the end stages of the war, Congress turns to Robert Morris,
a wealthy shipping merchant who was investigated for war
profiteering just two years earlier. Now as “Superintendent of Finance” of the United States from 1781 to
1784 he is regarded as the most powerful man in America next to General Washington.
In his capacity as Superintendent of Finance, Morris argues for the creation of a privately-owned central bank
deliberately modeled on the Bank of England that the colonies were supposedly fighting against. Congress, backed
into a corner by war obligations and forced to do business with the bankers just like King William in the 1690s,
acquiesces and charters the Bank of North
America as the nation’s first central bank. And exactly as the Bank of England came into existence loaning
the British crown 1.2 million pounds, the B.N.A. started business by loaning $1.2 million to Congress.
By the end of the war, Morris has fallen out of political favor and the Bank of North America’s currency has
failed to win over a skeptical public. The B.N.A. is downgraded from a national central bank to a private
commercial bank chartered by the State of Pennsylvania.
But the bankers have not given up yet. Before the ink is even dry on the constitution, a group led by Alexander
Hamilton is already working on the next privately-owned central bank for the newly formed United States of
So brazen is Hamilton in the forwarding of this agenda that he makes no attempt to hide his aims or those of the banking
interests he serves:
“A national debt, if it is not excessive, will be to us a national blessing,” he wrote in a letter to James
Duane in 1781. “It will be a powerful cement of our Union. It will also create a necessity for keeping up taxation
to a degree which, without being oppressive, will be a spur to industry.”
Opposition to Hamilton and his debt-based system for establishing the finances of the US is fierce. Led by
Jefferson and Madison, the bankers and their system of debt-enslavement is called out for the force of destruction
that it is. As Thomas Jefferson wrote:
“[T]he spirit of war and indictment, […] since the modern theory of the perpetuation of debt, has drenched the
earth with blood, and crushed its inhabitants under burdens ever accumulating.”
Still, Hamilton proves victorious. The First Bank of the United States is chartered in 1791 and follows the
pattern of the Bank of England and the Bank of North America almost exactly; a privately-owned central bank with
the authority to loan money that it creates out of nothing to the government. In fact, it is the very same people
behind the new bank as were behind the old Bank of North America. It was Alexander Hamilton, Robert Morris’ former
aide, who first proposed Morris for the position of Financial Superintendent, and the director of the old Bank of
North America, Thomas Willing, is brought in to serve as the first director of the First Bank of the United States.
Meet the new banking bosses, same as the old banking bosses.
In the first five years of the banks’ existence, the US government borrows 8.2 million dollars from the bank and
prices rise 72%. By 1795, when Hamilton leaves office, the incoming Treasury Secretary announces that the
government needs even more money and sells off the government’s meager 20% share in the bank, making it a fully
private corporation. Once again, the US economy is plundered while the private banking cartel laughs all the way to
the bank that they created.
By the time the bank’s charter comes due for renewal in 1811, the tide has changed for the money interests
behind the bank. Hamilton is dead, shot to death in a duel with Aaron Burr. The bank-supporting Federalist party is
out of power. The public are wary of foreign ownership of the central bank, and what’s more don’t see the point of
a central bank in time of peace. Accordingly, the charter renewal is voted down in the Senate and the bank is
closed in 1811.
Less than a year later, the US is once again at war with England. After 2 years of bitter struggle the public
debt of the US has nearly tripled from $45.2
million to $119.2 million. With trade at a standstill, prices soaring, inflation rising and debt mounting,
President Madison signs the charter for the creation of another central bank, the Second Bank of the United States,
in 1816. Just like the two central banks before it, it is majority privately-owned and is granted the power to loan
money that it creates out of thin air to the government.
The 20 year bank charter is due to expire in 1836, but President Jackson has already vowed to let it die prior
to renewal. Believing that Jackson won’t risk his chance for reelection in 1832 on the issue, the bankers forward a
bill to renew the bank’s charter in July of that year, 4 years ahead of schedule. Remarkably, Jackson vetoes the
renewal charter and stakes his reelection on the people’s support of his move. In his veto message, Jackson writes in no uncertain terms about
his opposition to the bank:
“Whatever interest or influence, whether public or private, has given birth to this act, it can not be found
either in the wishes or necessities of the executive department, by which present action is deemed premature, and
the powers conferred upon its agent not only unnecessary, but dangerous to the Government and country. It is to be
regretted that the rich and powerful too often bend the acts of government to their selfish purposes.[…]If we can
not at once, in justice to interests vested under improvident legislation, make our Government what it ought to be,
we can at least take a stand against all new grants of monopolies and exclusive privileges, against any
prostitution of our Government to the advancement of the few at the expense of the many, and in favor of compromise
and gradual reform in our code of laws and system of political economy.”
The people side with Jackson and he’s reelected on the back of his slogan, “Jackson and No Bank!” The President
makes good on his pledge. In 1833 he announces that the government will stop using the bank and will pay off its
debt. The bankers retaliate in 1834 by staging a financial crisis and attempting to pin the blame on Jackson, but
it’s no use. On January 8, 1835, President Jackson succeeds in paying off the debt, and for the first and only time in its
history the United States is free from the debt chain of the bankers. In 1836 the Second Bank of the United States’
charter expires and the bank loses its status as America’s central bank.
It is 77 years before the bankers can regain the jewel in their crown. But it is not for lack of trying.
Immediately upon the death of the bank, the banking
oligarchs in England react by contracting trade, removing capital from the U.S., demanding payment in hard
currency for all exports, and tightening credit. This results in a financial crisis known as the Panic of 1837, and
once again Jackson’s campaign to kill the bank is blamed for the crisis.
Throughout the late 19th century the United States is rocked by banking panics brought about by wild banking
speculation and sharp contractions in credit. By the dawn of the 20th century, the bulk of the money in the
American economy has been centralized in the hands of a small clique of industrial magnates, each with a near
monopoly on a sector of the economy. There are the Astors in real estate, the Carnegies and the Schwabs in steel,
the Harrimans, Stanfords and Vanderbilts in railroads, the Mellons and the Rockefellers in oil. As all of these
families start to consolidate their fortunes, they gravitate naturally to the banking sector. And in this capacity,
they form a network of financial interests and institutions that centered largely around one man, banking scion and
increasingly America’s informal central banker in the absence of a central bank, John Pierpont Morgan.
John Pierpont Morgan, or “Pierpont” as he prefers to be called, is born in Hartford, Connecticut in 1837 to
Junius Spencer Morgan, a successful banker and financier. Morgan rides his father’s coattails into the banking
business and by 1871 is partnered in his own firm, the firm that was eventually to become J.P. Morgan and
It is Morgan who finances Cornelius Vanderbilt’s New York Central Railroad. It is Morgan that
finances the launch of nearly every major corporation of the period, from AT&T to General Electric to General
Motors to Dupont. It is Morgan who buys out Carnegie and creates the
United States Steel Corporation, America’s first billion dollar company. It is Morgan who brokers a deal with President Grover Cleveland to
“save” the nation’s gold reserves by selling 62 million dollars worth of gold to the Treasury in return for
government bonds. And it is Morgan, who, in 1907, sets in motion the crisis that leads to the creation of the
That year, Morgan begins
spreading rumors about the precarious finances of the Knickerbocker Trust Company, a Morgan competitor and one of the largest
financial institutions in the United States at the time. The resulting crisis, dubbed the Panic of 1907, shakes the
U.S. financial system to its core. Morgan puts himself forward as a hero, boldly offering to help underwrite some
of the faltering banks and brokerage houses to keep them from going under. After a bout of hand-wringing over the
nation’s finances, a Congressional Committee is
assembled to investigate the “money trust,” the bankers and financiers who brought the nation so close to financial
ruin and that wield such power over the nation’s finances. The public follows the issue closely, and in the end a
handful of bankers are identified as key players in the money trust’s operations, including Paul Warburg, Benjamin
Strong, Jr., and J.P. Morgan.
At the beginning of the 20th century there was an investigation following the greatest of these financial
panics, which was in 1907, and this investigation was on “the money trust.” It found that three banking
interests–J.P. Morgan, National City Bank, and the City Bank of New York–basically controlled the entire
financial system. Three banks. The public hatred toward these institutions was unprecedented. There was an
overwhelming consensus in the country for establishing a central bank, but there were many different interests
in pushing this and everyone had their own purpose behind advocating for a central bank.
So to represent most people, you had farmer interests, populists, progressives, who were advocating a
central bank because they couldn’t take the recurring panics, but they wanted government control of the central
bank. They wanted it to be exclusively under the public control because they despised and feared the New York
banks as wielding too much influence, so for them a central bank would be a way to curb the power of these
private financial interests.
On the other hand, those same financial interests were advocating for a central bank to serve as a source of
stability for their control of the system, and also to act as a lender of last resort to them so they would
never have to face collapse. But also, in order to exert more control through a central bank, the private New
York banking community wanted a central bank under the exclusive control of them. There’s a shocker.
So you had all these various interests which converged. Of course, the most influential happened to be the
New York financial houses which were more aligned with the European financial houses than they were with any
other element in American society. The main individual behind the founding of the Federal Reserve was Paul
Warburg, who was a partner with Kuhn, Loeb and Company, a European banking house. His brothers were prominent
bankers in Germany at that time, and he had of course close connections with every major financial and
industrial firm in the United States and most of those existing in Europe. And he was discussing all of these
ideas with his fellow compatriots in advocating for a central bank. In 1910, Warburg got the support of a
Senator named Nelson Aldrich, whose family later married into the Rockefeller family (again, I’m sure just a
coincidence). Aldrich invited Warburg and a number of other bankers to a private, secret meeting on Jekyll
Island just off the coast of Georgia where they met in 1910 to discuss the construction of a central bank in
the United States, but one which would of course be owned by and serve the interests of the private bank.
Aldrich then presented this in 1911 as the “Aldrich Plan” in the U.S. Congress, but it was actually voted
The public, suspicious of Senator Aldrich’s banking connections, ultimately reject the Jekyll Island cabal’s
“Aldrich Plan.” The cabal does not give up, however. They simply revise and rename their plan, giving it a new
public face, that of Representative Carter Glass and Senator Robert Owen.
In the end, the money trust that was behind the Panic of 1907 uses the public’s own outrage against them to
complete their consolidation of control over the banking system. The newly-retitled Federal Reserve Act is signed
into law on December 23, 1913 and the Fed begins operations the next year.
Part Two: How the Scam Works
“The study of money, above all other fields in economics, is one in which complexity is used to disguise
truth or to evade truth, not to reveal it.” -John Kenneth
So how does the Federal Reserve system work? What does it do? Who owns and controls it? These are the basic
questions that would get to the heart of the fundamental question: ‘what is money?’ And that is why the answer to
these questions have been shrouded in impenetrable economic jargon.
Even the Federal Reserve’s own educational propaganda, which has an unusual tendency toward cutesy animation and
talking down to its audience, has a difficult time summarizing the Fed’s mission and responsibilities. According to
To achieve [its] goals, the Fed, then and now, combines centralized national authority through the Board of
Governors with a healthy dose of regional independence through the reserve banks. A third entity, the Federal
Open Market Committee, brings together the first two in setting the nation’s monetary policy.
Precisely what imaginary gaggle of schoolchildren is this economic gibberish aimed at?
The simple truth, hidden behind the sleight of hand of economic jargon and magisterial titles, is that a banking
cartel has monopolized the most important item in our entire economy: money itself.
We are taught to think of money as the pieces of paper printed in government printing presses or coins minted by
government mints. While this is partially true, in this day and age the actual notes and coins circulating in the
economy represent only a tiny fraction of the money in existence. Over 90% of the money supply is in fact created
by private banks as loans that are payable back to the banks at interest.
Although this simple fact is obscured by the wizards of Wall Street and gods of money who want to make the money
creation process into some special art of alchemy carefully overseen by the government, the truth is not hidden
from the public.
In December 1977, the Federal Reserve Bank of New York published another of its dumbed-down cartoon-ridden
information pamphlets for the general public
attempting to explain the functions of the Federal Reserve System. There in black and white they carefully explain
the money creation process:
“Commercial banks create checkbook money whenever they grant a loan, simply by adding new deposit dollars to
accounts on their books in exchange for a borrower’s IOU.[...]Banks create money by ‘monetizing’ the private debts
of businesses and individuals. That is, they create amounts of money against the value of those IOUs.”
There it is, in plain English: the vast majority of money in the economy, the “checkbook” money in our accounts
at the bank and that we use in our electronic transfers and digital payments, is created not by a government
printing press, but by the bank itself. It is created out of thin air as debt, owed back to the bank that created
it at interest. This means that bank loans are not money taken from other bank depositors, but new money simply
conjured into existence and placed into your account. And the bank is able to create much more money than it has
cash to back up those deposits.
The Fed claims to be the entity overseeing and backing up the banking industry. It was established, according to
its own propaganda, to stabilize the system and prevent bank runs like the Panic of 1907 from happening again:
Throughout much of the 1800s, almost any organization that wanted could print its own money. As a result,
many states, banks, and even one New York druggist, did just that. In fact at one time there were over 30,000
different varieties of currency in circulation. Imagine the confusion.
Not only were there multitudes of currencies, some were redeemable in gold and silver, others were backed by
bonds issued by regional governments. It was not unusual for people to lose faith both in the value of their
currency and in the entire financial system. With many people trying to withdraw their deposits at once,
sometimes the banks didn’t have enough money on hand to pay their depositors. Then when the funds ran out the
banks suspended payment temporarily and some even closed. People lost their entire savings. Sometimes regional
Obviously something had to be done. And in 1913, something was. In that year, President Woodrow Wilson
signed into effect the Federal Reserve Act. This act created the Federal Reserve system to provide a safer and
more stable monetary and banking system.
If that was indeed its aim, it signally failed to do so in running up one of the greatest bubbles in American
history to that point in the 1920s, just a decade after its creation. The popping of that bubble, of course, lead
directly into the Great Depression and one of the greatest periods of mass poverty in American history. Economists
have long argued that the Fed itself was the cause of the depression by its complete mismanagement of the money
supply. As former Federal Reserve Chairman Ben Bernanke admitted in a speech commemorating Fed
critic Milton Friedman’s 90th birthday: “Regarding the Great Depression. You’re right, we did it. We’re very sorry.
But thanks to you, we won’t do it again.”
“Price stability” is another cited tenet of the Federal Reserve’s mandate. But here, too, the Fed has completely
failed to live up to its own standards:
Aside from the banking system, the Federal Reserve has another responsibility that’s probably even more
important. It’s in charge of something called “monetary policy.” Basically, it means trying to keep prices
stable to avoid inflation. Say you buy a CD today for $14. But what if next year the price of the CD jumped to
$20 or $50, not because of a change in supply or demand, but because all prices were going up. That’s
There are a lot of different causes of inflation, but one of the most important is too much money. The Fed
can adjust the money supply by injecting money into the system electronically, or by withdrawing money from the
Think of it: the Federal Reserve has the ability to create money, or make it disappear. What’s most
important is what happens as a result. Any time the supply of money is altered, the effects are felt throughout
The Fed’s methods have changed over time to take advantage of the latest computers and electronics, but its
mission remains the same: to aim for stable prices, full employment and a growing economy.
Paper money, too, is the responsibility of the Federal Reserve. Hence the dollars in circulation are not
Treasury notes, not bills of credit, but Federal Reserve Notes, debt-based notes backed up ultimately by the
government’s own promise to pay, its “sovereign bonds” secured by the taxpayers themselves. At one time, the
Federal Reserve Banks were legally required to keep large stockpiles of gold in reserve to back up these notes, but
that requirement was abandoned and today the notes are backed up mostly by government securities. The Fed
no longer keeps any
actual gold on its books, but gold “certificates” issued by the treasury and valued not at the spot
price of $1300 per troy ounce, but an arbitrarily fixed “statutory price” of $42 2/9 per ounce.
Ron Paul: But I do have one question: During the crisis or at any time that you’re aware
of, has the Federal Reserve or the Treasury participated in any gold swap arrangements?
Scott Alvarez: The Federal Reserve does not own any gold at all. We have not owned gold
since 1934 so we have not engaged in any gold swaps.
Ron Paul: But it appears on your balance sheet that you hold gold.
Scott Alvarez: What appears on our balance sheet is gold certificates. When we turned
in…before 1934, we did…the Federal Reserve did own gold. We turned that over by law to the Treasury and
received in return for that gold certificates.
Ron Paul: If the Treasury entered into…because under the Exchange Stabilization Fund I
would assume they probably have the legal authority to do it…they wouldn’t be able to do it then because you
have the securities for essentially all the gold?
Scott Alvarez: No, we have no interest in the gold that is owned by the Treasury. We have
simply an accounting document that is called “gold certificates” that represents the value at a statutory rate
that we gave to the Treasury in 1934.
Ron Paul: And still measured at $42 an ounce which makes no sense whatsoever.
Clearly, there is a discrepancy between what we are led to believe is motivating the Fed and what it actually
does. To understand what the Fed is actually intended to do, it’s first important to understand that the Federal
Reserve is not a bank, per se, but a system. This system codifies, institutionalizes, oversees and undergirds a
form of banking called fractional reserve banking, in which banks are allowed to lend out more money than they
actually have in their vaults.
The process of decay and corruption starts with something called “fractional reserve banking.” That’s the
technical name for it. And what that really means is that as the banking institution developed over several
centuries, starting of course in Europe, it developed a practice of legalizing a certain dishonest accounting
In other words, in the very, very beginning (if you want to go all the way back), people would bring their
gold or silver to the banks for safe keeping. And they said, “give us a paper receipt, we don’t want to guard
our silver and our gold because people could come in in the middle of the night and they could kill us or
threaten us and they’ll get our gold and silver so we can ‘t really guard it so we’ll take it to the bank and
have them guard it and we just want a paper receipt. And we’ll take our receipt back and get our gold anytime
we want.” So in the beginning money was receipt money. Then, instead of changing or exchanging the gold coins,
they could exchange the receipts, and people would accept the receipts just as well as the gold, knowing that
they could get gold. And so these paper receipts being circulated were in essence the very first examples of
Well the banks learned early on in that game that here they were sitting on this pile of gold and all these
paper receipts out there. People weren’t bringing in the receipts anymore, very few of them, maybe five percent
maybe seven percent of the people would bring in their paper receipts and ask for the gold. So they said, “Ah
ha! Why don’t we just sort of give more receipts out then we have gold? They’ll never know because they only
ask for, at the best, seven percent of it. So we can create more receipts for gold then we have. And we can
collect interest on that because we’ll loan that into the economy. We’ll charge interest on this money that we
don’t really have. And it’s a pretty good gimmick don’t ya think?” And they go, “Well, yeah, of course.” And so
that’s how fractional reserve banking started.
And now it’s institutionalized and they teach it in school. No one ever questions the integrity of it or the
ethics of it. They say, “Well, that’s the way banking works, and isn’t it wonderful that we now have this
flexible currency and we have prosperity” and all these sorts of things. So it all starts with this concept of
fractional reserve banking.
The trouble with that is that it works most of the time. But every once and a while there are a few ripples
that come along that are a little bit bigger than the other ripples. Maybe one of them is a wave. And more than
seven percent will come in and ask for their gold. Maybe twenty percent or thirty percent. And well, now the
banks are embarrassed because the fraud is exposed. They say, “well we don’t have your gold” “What do you mean
you don’t have my gold!! I gave it to you and put it on deposit and you said you’d safe guard it.” “Well we
don’t have it, we loaned it out.” So then the word gets out and everyone and their uncle comes out and lines up
for their gold. And of course they don’t have it, the banks are closed, and they have bank holidays. Banks are
embarrassed, people lose their savings. You have these terrible banking crashes that were ricocheting all over
the world prior to this time. And that is what caused the concern of the American people. They didn’t want that
anymore. They wanted to put a stop to that.
And that was the whole purpose, supposedly, of the Federal Reserve system. Was to put a stop to that. But
since the people who designed the plan to put a stop to it were the very ones who were doing it in the first
place, you can not be surprised that their solution was not a very good one so far as the American people were
concerned. Their solution was to expand it. Not to control it, to expand it. See, prior to that time, this
little game of fractional reserve banking was localized at the state level. Each state was doing its own little
fractional reserve banking system. Each state, in essence, had its own Federal Reserve. Central banks were
authorized by state law to do this sort of thing. And that was causing all this problem. So the Federal Reserve
came along and said, “No no, we’re not going to do this at the state level anymore, because look at all the
problem it’s causing. We’re going to consolidate it all together and we’re going to do it at the national
The key to the system, of course, is who controls this incredible power to “regulate” the economy by setting
reserve requirements and targeting interest rates. The answer to this question, too, has been deliberately
The Federal Reserve system is a deliberately confusing mish-mash of public and private interests, reserve banks,
boards and committees, centralized in Washington and spread out across the United States.
So you have the Federal Reserve Board in Washington appointed by the President. That’s the only part of this
system that is directly dependent on the government for input that’s the “federal” part: that the
government–the president specifically–gets to choose a few select governors. The twelve regional banks–the most
influential of which is the Federal Reserve Bank of New York which is essentially based in Wall Street to
represent Wall Street–is a representative of the major Wall Street banks who own shares in the private, not
federal, but private Federal Reserve Bank of New York. All of the other regional banks are also private banks.
They vary according to how much influence they wield but the Kansas City fed is influential, the St. Louis fed,
the Dallas fed, but the New York Fed is really the center of this system and precisely because it represents
the Wall Street banks who appoint the leadership of the New York fed.
So the New York fed has a lot of public power, but no public accountability or oversight. It does not answer
to Congress the way that the chairman of the Federal Reserve Board of Governors does and even the chairman of
the Federal Reserve board who is appointed by the President, does not answer to the President, does not answer
to Congress. He goes to Congress to testify but the policy that they set is independent. So they have no input
from the government. The government can’t tell them what to do legally speaking, and of course they don’t.
Rep. John Duncan: Do you think it would cause problems for the Fed or for the economy
if that legislation was to pass?
Ben Bernanke: My concern about the legislation is that if the GAO is auditing not only
the operational aspects of our programs and the details of the programs, but is making judgements about our
policy decisions, that would effectively be a takeover of monetary policy by the Congress, a repudiation of
the independence of the Federal Reserve which would be highly destructive to the stability of the financial
system, the dollar, and our national economic situation.
The Federal Open Market Committee is responsible for setting interest rates. Now this committee, which is
enormously powerful, has as its membership the Governor and Vice Chair of the Federal Reserve Board, but on the
Federal Open Market Committee most of the membership is the presidents of the regional Federal Reserve Banks
representing private interests. So they have significant input into setting the interest rates. Interest rates
are not set by a public body, they’re set by private financial and corporate interests. And that’s whose
interests they serve, of course.
The reason that the Federal Reserve goes to such great lengths to make its organizational structure as confusing
as possible is to cover up the massive conflicts of interest that are at the heart of that system. The fact is that
the Federal Reserve system is comprised of a Board of Governors, 12 regional banks, and an open market committee.
The privately-owned member banks of each Federal Reserve Bank vote on the majority of the Reserve Bank’s directors,
and the directors vote on members to serve on the Federal Open Market Committee which determines monetary policy.
What’s more, Wall Street is given a prime seat at the table, with tradition holding that the President of the
powerful New York Federal Reserve Bank be given the Vice Chairmanship of the FOMC and be made a permanent committee
member. In effect, the private banks are the key determinants in the composition of the FOMC which regulates the
According to the Fed “its monetary policy
decisions do not have to be approved by the President or anyone else in the executive or legislative branches of
government, it does not receive funding appropriated by the Congress, and the terms of the members of the Board of
Governors span multiple presidential and congressional terms.”
Or, in the words of Alan Greenspan: “The Federal
Reserve is an independent agency and that means there is no other agency of government that can overrule actions
that we take.”
The Fed goes on in its self-mythologization to state that it is “not a private, profit-making institution.” This
characterization is dishonest at best, and an outright lie at worst.
The regional banks are themselves private corporations, as noted in a 1928 Supreme Court ruling: “Instrumentalities like the national banks or the
federal reserve banks, in which there are private interests, are not departments of the government. They are
private corporations in which the government has an interest.” This point is even admitted by the Federal Reserve’s
own senior counsel.
Yvonne Mizusawa: Our regulations do specify overall terms for the lending, but the day
to day operation of the banking activities are conducted by the Federal Reserve Banks. They are banks, and
indeed they do lend…
Peter W. Hall: So they’re their own agency, then, essentially, in that regard.
Yvonne Mizusawa: They are not agencies, your honor, they are “persons” under FOIA. Each
Federal Reserve Bank, the stock is owned by the member banks in the district, 100% privately held, they are
private boards of directors. The majority of those boards are appointed by the independent banks, private banks
in the district. They are not agencies.
These private corporations issue shares that are held by the member banks that make up the system, making the
banks the ultimate owners of the Federal Reserve Banks. Although the Fed’s profits are returned to the Treasury
each year, the member banks’ shares of the Fed do earn them a 6%
dividend. According to the Fed, the fixed nature of these returns mean that they are not being held for
Despite the dishonest nature of this description, however, it is important to understand that the bankers who
own the Federal Reserve indeed do not make their money from the Fed directly. Instead, the benefits are much less
obvious, and much more insidious. The simplest way that this can be understood is that, as a century of history and
the specific example of the last financial crisis shows, the Fed was used as a vehicle to bail out the very bankers
who own the Fed banks in the most obvious example of fascistic collusion imaginable.
A handful of financial institutions have enriched themselves as a result of institutional speculation on a
large scale, as well as manipulation of the market. And secondly what they have done is that they have then
gone to their governments and said, “Well, we are now in a very difficult situation and you need to lend us…you
need to give us money so that we can retain the stability of the financial system.”
And who actually lends the money, or brokers the public debt? The same financial institutions that are the
recipients of the bailout. And so what you have is a circular process. It’s a diabolical process. You’re
lending money…no, you’re not lending money, you’re handing money to the large financial instutions, and then
this is leading up to mounting public debt in the trillions. And then you say to the financial institutions “We
need to establish a new set of treasury bills and government bonds, etc.” which of course are sold to the
public, but they are always brokered through the financial institutions which establish their viability and so
on and so forth. And the financial institutions will probably buy part of this public debt so that in effect
what the government is doing is financing its own indebtedness through the bailouts. It hands money to the
banks, but to hand money to the banks, it becomes indebted to those same financial institutions, and then it
says “We now have to emit large amounts of public debt. Please can you help us?” And then the banks will say:
“Well, your books are not quite in order.” And then the government will say: “Obviously they’re not in order
because we’ve just handed you 1.4 trillion dollars of bailout money and we’re now in a very difficult
situation. So we need to borrow money from the people who are in fact the recipients of the bailout.”
So this is really what we’re dealing with. We’re dealing with a circular process.
The 2008 crisis and subsequent bailouts are merely the latest and most brazen examples of the fundamental
conflicts of interest at the heart of America’s privately-owned central banking system.
Beginning with the collapse of Lehman Bros. in September of that year, the Federal Reserve embarked on an
unprecedented program of bailouts and special zero interest lending facilities for the very banks that had caused
the subprime meltdown in the first place. By the cartelization of the Federal Reserve structure, and thus not by
accident, it was the very bank presidents who had overseen their banks’ lending practices that ended up in the
director positions of the Federal Reserve Banks that voted on where to direct the trillions of dollars in bailout
money. And unsurprisingly, they directed it toward their own banks.
A stunning 2011 Government
Accountability Office report examined $16 trillion of bailout facilities extended by the Fed in the wake
of the crisis and exposed numerous examples of blatant
conflicts of interest. Jeffrey Immelt, chief executive of General Electric served as a director on the board of
the Federal Reserve Bank of New York at the same time the Fed provided $16 billion in financing to General
Electric. JP Morgan Chase chief executive, Jamie Dimon, meanwhile, was also a member of the board of the New York
Fed during the period that saw $391 billion in Fed emergency lending directed to his own bank. In all, Federal
Reserve board members were tied to $4 trillion in loans to their own banks. These funds were not simply used to
keep these banks afloat, but actually to return these Fed-connected banks to a period of record profits in the same
period that the average worker saw their real wages actually decrease and the economy on main street slow to a
Then Fed Chairman Ben Bernanke was confronted about these conflicts of interest by Senator
Bernie Sanders upon the release of the GAO report in June 2012.
Ben Bernanke: Senator, you raised an important point, which is that this is not something
the Federal Reserve created. This is in the statute. Congress in the Federal Reserve Act said “This is the
governance of the Federal Reserve.” And more specifically that bankers would be on the board…
Bernie Sanders: 6 out of 9.
Ben Bernanke: Sorry?
Bernie Sanders: 6 out of 9 in the regional banks are from the banking industry.
Ben Bernanke: That’s correct. And that is in the law. I’ll answer your question, though.
The answer to your question is that Congress set this up, I think we’ve made it into something useful and
valuable. We do get information from it. But if Congress wants to change it, of course we will work with you to
Bernanke is completely right. These conflicts are in fact a part of the institution itself. A structural feature
of the Federal Reserve that was baked into the Federal Reserve Act itself over 100 years ago by the bankers who
conspired to cartelize the nation’s money supply. You could not ask for a more succinct reason why the Federal
Reserve itself, this admitted cartel of banking interests, needs to be abolished…but you could get one.
Part Three: End the Fed
“They who control the credit of a nation, direct the policy of Governments and hold in the hollow of their
hands the destiny of the people.” – Reginald
We now know that for centuries the people of the United States have been at war with the international banking
oligarchs. That war was lost, seemingly for good, in 1913, with the creation of the Federal Reserve. With the
passage of the Federal Reserve Act, President Woodrow Wilson consigned the American population to a century in
which the money supply itself has depended on the whims of the banking cabal. A century of booms and busts, bubbles
and depressions, has led to a wholesale redistribution of wealth toward those at the very top of the system. At the
bottom, the masses toil in relative poverty, single-income households becoming double-income households out of
necessity, their quality of life being slowly eroded as the Federal Reserve Notes that pass for dollars are
Worse yet, the fraud itself perpetuates Alexander Hamilton’s persistent myth that a national debt is necessary
at all. The US is now locked into a system whereby the government issues bonds to generate the funds for their
operations, bonds that are backed up by the taxation of the public’s own labor.
The perpetrators of this fraud, meanwhile, remain in the shadows, largely ignored by a general public that could
instantly recognise the latest Hollywood heartthrob or pop idol, but have no clue what the head of Goldman Sachs or
the New York Fed does, let alone who they are. This cabal bear allegiance to no nationality, no philosophy or
creed, no code of ethics. They are not even motivated by greed, but power. The power that the control of the money
supply inevitably brings with it.
It did not take long for this lust for power to rear its head. In 1921, just 7 years after the Fed began
operations, the same J.P. Morgan-connected banking elite that founded the Federal Reserve incorporated an
organization called The Council on Foreign Relations with the goal of taking over the foreign policy apparatus
of the United States, including the State Department. In this quest, it was remarkably successful. Although
there are only about 4000 members in the organization today, its membership has included 21 Secretaries of
Defense, 18 Treasury Secretaries, 18 Secretaries of State, 16 CIA directors and many other high-ranking
government officials, military officers, business elite, and, of course, bankers. The first Director of the CFR
was John W. Davis, J.P. Morgan’s personal lawyer and a millionaire in his own right.
Together with its sister organizations in Britain and elsewhere around the world, these groups would work
together toward what they called a “New World Order” of total financial and political control directed by the
bankers themselves. As Carroll Quigley, noted Georgetown historian and mentor of Bill Clinton, wrote in his 1966 work, Tragedy and Hope: A History of
The World In Our Time:
“The powers of financial capitalism had [a] 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 Basel, Switzerland, a private bank owned and controlled by the
world’s central banks which were themselves private corporations.”
This is why the bankers and their partners in government and business conspired to bring about the 2008 crisis.
Not for the pursuit of money, but power. In the same way the bankers used the Panic of 1907 to consolidate their
control over the money supply, they hope to use the 2008 crisis and subsequent panics, which they themselves have
created, to consolidate their political control.
The inevitable conclusion, one that flows necessarily from the true understanding of this situation, is that the
Federal Reserve system needs to be consigned to the dustbin of history. After a century of enslavement, it is time
for the American public to finally throw off the bankers’ debt chains.
If you’ve made it this far, congratulations. You are now better informed on the economic history of the United
States and the truth about the Federal Reserve than 99% of the population. If you do nothing else, then just
working to get those around you educated on this information alone will have a profound effect. Once they learn of
the scam, many are motivated to do something about it, and they, in turn, inform others. This is the viral nature
of suppressed truth, and it is the reason that more people are aware of and energized by the issue of the Federal
Reserve and the nature of money than ever before.
Perhaps even more amazingly, this movement is spreading to other parts of the globe. Recognizing the
interlocking nature of the modern global economy, and the international nature of the banking oligarchy, movements
to abolish the Federal Reserve have sprung up in Europe,
where protests against the cartelized central banking system are taking place in over 100 cities attracting 20,000
people on a weekly basis.
Lars Maehrholz: I started this movement because I realized that the Federal Reserve
Act, in my opinion, is one of the worst laws in the whole world. So a private banking company is lending
America the money, and in my opinion is not democratic anymore. The Federal Reserve tells the government what
to do, and that’s the problem.
Luke Rudkowski: It’s a very big problem, especially in the U.S. Why is it a global
issue, and why are people doing it here in Germany?
Lars Maehrholz: Because when you realize that this finance system, it’s a global system,
you have to go really to the beginning of the system. And in my opinion it’s also the World Bank and the
International Monetary Fund and stuff like this, but at the beginning of all this is a law from 1913. Woodrow
Wilson signed it, and this is the beginning of all this hardcore capitalism we are now suffering from. And the
only way to stop this is maybe to break this law.
But what if the burgeoning movement to End The Fed is successful? What system do people propose as the answer?
There have been several proposals along different lines by various researchers. Some argue for a return to America’s colonial roots of
debt-free money issued by state run banks, pointing to the Bank of North Dakota as one already functioning,
successful model of this approach.
Others advocate a
decentralized system of alternative and competing currencies that greatly reduce or even eliminate altogether the
need for a central bank.
Some argue for currencies whose mathematical
nature prevent them from being merely conjured into existence whenever a federal government wants to wage another
war of aggression or forge another link in the seemingly endless train of governmental tyranny and abuse.
Other, even more innovative ideas have been forwarded to harness current technologies to bring credit creation
back to the individual level and revolutionize our concept of money altogether:
Sound money. Cryptocurrencies. State banks. LETS programs. Self-issued credit. These and many other solutions
have all been proposed and many of them are in use in different localities today. Information on all of these ideas
and how they are being applied in various parts of the world are widely available online today. The point is that
the question of what money is and how it should be created is perhaps the single greatest question facing humanity
as a whole, and yet it is one that has been almost completely eliminated from the national conversation…until
For the first time in living memory, people are once again rallying around the monetary issue, and American
politics stands on the threshold of a transformation almost unimaginable just two decades ago.
And so the rest of the story is now in our hands. Once we understand the scam that has taken place, the gradual
consolidation of wealth and power in the hands of an elite few banking oligarchs and the growing impoverishment of
the masses, all in the name of banking funny money created out of nothing and loaned to the public at interest, we
can choose to get active or to do nothing at all.
For those who choose to get active, there are some steps that you can take to help change the course of this
1) Follow the links and resources from the transcript of this documentary at corbettreport.com/federalreserve to familiarize yourself with the
history, the connections and the functions of the Federal Reserve system. If you can’t explain this material to
yourself then you will never be able to teach it to others.
2) Begin reaching out to others to bring them up to speed on the issue. It can be as simple as broaching this
conversation in the Monday morning water cooler talk or passing out a copy of this documentary or sending out links
to this information to your email list. Insert this topic into your conversations. When people start talking about
the national debt or the state of the economy or other political talking points, get them to question the roots of
these issues, and why there is a national debt at all.
3) When you are able to find or create a group of like-minded people in your area who are engaged with the
issue, start a study group on the issue and its solutions. The study group can help source alternative or
complementary currencies in the local area, or, if none exist already, the group can form the basis for a community
of local businesses and customers who are willing to start experimenting with ways to wean themselves off of the
Federal Reserve notes.
4) Use the resources at corbettreport.com, including the Federal Reserve information flyer, or hold DVD
screenings, to attract interest in your group and draw others into studying the true nature of the monetary
The work of building up an alternative to the current system can seem daunting, even at times overwhelming. But
it’s important to keep in mind that the Federal Reserve system that seems so monolithic today has only been around
for one century. Central banks have been defeated in America before and they can be defeated again.
The question of how we decide to change this system is not rhetorical; it will either be answered by an
informed, engaged, active population working together to create viable alternatives and to dismantle the current
system, or it will be answered by the same banking oligarchy that has been controlling the money supply, and indeed
the lifeblood of the country, for generations.
Now, one century after the creation of the Federal Reserve system, we have a choice to make: whether the next
century, like the one before it, will be a century of enslavement, or, transformed by the actions and choices that
we make in the light of this knowledge, a century of empowerment.
Washington is owned by the private global
banking cartel that owns Wall Street. International law does not apply to this criminal cartel. They stole
trillions of dollars from the American people with help from corrupt politicians over a stretch of many decades,
culminating in the government bailout in 2008, and they have not been held accountable.
These bandits and looters could care less if America crashes and burns. In fact,
they want America to die because they want to institute a private world government upon its ruins. And they’re
doing a fantastic job at it because they’ve had decades of practice in nations in Latin America, Africa, and
Asia where they bought off greedy politicians, and robbed their people through the IMF/World Bank/WTO.
The entire business model of the private global banking tricksters is based on stealing the wealth
of nations, and destroying national independence in order to allow lawless multinational corporations to completely
take over. Read this article about how they do it.
Once nations are put into needless debt by these private global bankers, they put the squeeze on
them by forcing them to pay back usurious loans that make them go bankrupt. After the inevitable mayhem that
follows national collapse, they impose a military dictatorship so that the people can’t resist. Damon Vrabel calls
it the “death of nations.” He writes:
The fact is that most countries are not sovereign (the few that are are being attacked by
CIA/MI6/Mossad or the military). Instead they are administrative districts or customers of the global banking
establishment whose power has grown steadily over time based on the math of the bond market, currently ruled by the
US dollar, and the expansionary nature of fractional lending. Their cult of economists from places like Harvard,
Chicago, and the London School have steadily eroded national sovereignty by forcing debt-based, floating currencies
Civilized nations stand up for themselves,
they don’t bow down to private bankers. America can prove to the world that it is civilized, honest, and free by
showing the global banking overlords the door.
The way to fight back against the global robbers at the privately owned Federal Reserve
Bank/IMF/World Bank and the big banks is entirely peaceful. It is a matter of exposing their deviance and deception
to the public, and then hitting the streets. An enemy can’t be defeated unless it remains in the shadows, striking
at will. Directing public light at the private global banking cartel’s evil influence over nations that are thought
to be free and independent by the people is the only way to bring an end to their crimes, and treachery against
A new civilization based on the divine values of freedom, justice, truth, and mutual respect among
nations, and private institutions, can’t be born unless we all come together as global citizens and fight back
against the unlawful rule of the private global banking cartel. Our countries are suffering because of their greed
and ruthless control.
The austerity measures that are being called for by the banks and the elite is bringing chaos onto
the streets of Europe on a scale never before seen, and it won’t be long before America enters the stage. We are
nearing the moment when the globalist conspirators behind the plans for a new world order will openly declare the
end of America. When they do, we shall declare the end of them, and fight for the rebirth of America, and all of
Only an order based on the rule of law and freedom should be accepted. The conspiratorial elite
intend to achieve a new world order through this period of engineered chaos not by law, but by brutal force because
it is the only way to impose a criminal, bank-owned government on a global scale. Despite their rhetoric, these
devilish traitors are not visionary thinkers because corrupt designs for a world state isn’t new in history. Their
arrogance is a cover. They will fail hard. And America will be set free from bondage, along with other nations.
“This is global government, a private corporate global government, taking over every major society
with the same formula. It is fraudulent, and it must be resisted, or we have no future. We cannot allow this new
dark age to begin,” says radio host Alex Jones in a YouTube video message entitled “It’s the Bankers or Us.” Watch
his message, and spread it.
There is a peaceful global revolution against the private global banking cartel, and it can’t be
stopped. Join it and help everyone live free, or die a slave under the empire of debt.
DERIVATIVES : The Debt
The derivatives market is the Las Vegas of the world's financial
super elite, worth anywhere between 2 to 8 quadrillion dollars compared to about 70 trillion dollars of world
GDP. We look at the so-called financial innovations of Wall Street from Collateralized Debt Obligations to
Mortgage Backed Securities.
We also look at US government's complicity; White House and Congress both vested
interests not only as recipients of Wall Street largess in the form of campaign donations but as major players with
criminal asymmetrical information and influence advantages.
24/7 surveillance. Smart grid controls. Carbon rationing. Today we talk to
"Technocracy Rising" author Patrick Wood about the hidden history of technocracy, the dark plan for a
resource-based economy that is being pushed by the Trilateral Commission, the UN, and other globalist institutions
in order to bring about a completely managed, controlled and regulated society.
"I freed a thousand slaves; I
could have freed a thousand more, if only they knew they were slaves."
Only the vigilant can maintain their liberties, and only those who
are constantly and intelligently on the spot can hope to govern themselves effectively by democratic
"A society, most of whose members spend a great part of their time,
not on the spot, not here and now and in their calculable future, but somewhere else, in the irrelevant other
worlds of sport and soap opera, of mythology and metaphysical fantasy, will find it hard to resist the
encroachments of those who would manipulate and control it.”