problem: Its debt-money system!
you would ask any American citizen what the Federal Reserve is, he
probably would tell you that it is a government agency that creates all
of the money to run the United States. This, unfortunately, is the
misconception most American have: that the Federal Reserve is a
government agency, probably because the word “Federal” is used in
its name. And this is exactly what the Bankers want: ignorance among the
the next few paragraphs, I am going to simply explain what the Federal
Reserve is really all about, and how it is being used to control the
United States. A good resource book that I am using is entitled
“Billions for the Bankers — Debts for the people” by Sheldon Emry.
A private corporation
The first thing that must be understood is that the Federal Reserve
Corporation is not a government agency, as most people think. It is a
private corporation controlled by the Bankers, and therefore it is
operated for the financial gain of the Bankers over the people, rather
than for the good of the people.
When our Founding Fathers wrote the Constitution of the United States
back in the 1700's, they specifically stated in Article 1 of this
shall have the Power to Coin Money and Regulate the Value Thereof.
It was the wish of the Founding Fathers that the power to create and
control the money be in the hands of the Federal Congress, and not in
the hands of private Bankers who could charge enormous amounts of
interest, and who could actually then control the country by controlling
the money. They understood the tricks of the Bankers, for what did Mayer
Anselm Rothschild, the great European Banker, once say: “Permit
me to issue and control the money of a nation, and I care not who makes
its laws...” It was their belief that all citizens should
share in the profits of its creation, not just private Bankers, and
therefore the national Government must be the only creator of money.
So what happened! For several years after the Constitution was signed,
the money in the country was handled both legally and illegally, the
Bankers having devised all kinds of tricks to try to take control of the
The Federal Reserve Act
But the final blow came in 1913, on Christmas Eve, when the Congress
passed the Federal Reserve Act, which officially took the power to
create the money to run United States away from the Congress, and gave
it over to private Bankers, who called themselves the Federal Reserve
Corporation. But note: they are private Bankers.
The passage of this Federal Reserve Act authorized the establishment of a
Federal Reserve Corporation, with a Board of Directors (The Federal
Reserve Board) to run it. And the United States was divided into 12
Federal Reserve Districts.
This new law completely removed from the Congress the right to create
money or to have any control over its creation, and gave this function
over to the Federal Reserve Corporation. The Fed printed “Federal
Reserve Notes”, which are still accepted today as money among the
citizens of the country.
But we have to understand that these Federal Reserve Notes, used as money
in the country, cannot be considered as being constitutional money. Why,
you ask? Because the Congress went against the Constitution of the
United States when it passed this Federal Reserve Act, for it
specifically states that Congress, and only Congress shall have the
power to coin and regulate the money of the country.
Some might ask: “What does it matter if Congress or private Bankers
create the money? It is accepted by the people just the same as a medium
of exchange with which to perform business transactions”.
Yes, the Federal Reserve Notes are accepted as a medium of exchange by
the people of the United States. But this is a debt-money, being
interest is charged on every dollar that is created, but the interest is
not created!, Let me give an example to illustrate this point.
To obtain the money
Let us say that the Federal Government needs $1,000,000,000 ($1 billion)
more, after it collects the taxes, to continue financing its projects.
Since it does not have the money, and Congress has given away its
authority to create it, the Government must go to the Federal Reserve,
which is now in charge of creating the money for the country. But the
Federal Reserve does not just give its money away! The Bankers are
willing to deliver $1 billion in money or credit to the Federal
Government only in exchange for the Government's agreement to pay it
back — with interest! The Congress then authorizes the Treasury
Department to print $1 billion in U.S. bonds, which are then delivered
to the Federal Reserve Bankers.
The Federal Reserve then pays the cost of printing the $1 billion (about
$1,000), and makes the exchange. The Government then used the money to
pay its obligations.
Now, what are the results of this transaction! The $1 billion in
Government bills is paid, but the Government has now indebted the people
to the Bankers for $1 billion, on which the people must pay interest!
And, of course, the
interest is not created!
And, to top it all, on this $1 billion that the Federal Reserve received
in bonds from this transaction, it is legally allowed to create another
$15 billion in new credit to lend to states, municipalities, businesses,
and individuals. Added to the original $1 billion, they could have $16
billion of created credit out in loans paying them interest, with their
only cost being the $1,000 they spent for printing the original $1
billion lent to the Government. Is it diabolical? You bet it is!
We should probably clarify the term “create”. When we use this term,
we refer to the process used to bring money into existence. The Bankers
create money out of nothing, simply by writing numbers in their ledger
books, and then giving loans to the American people with this money,
allowing them to write checks on the numbers written in their accounts,
and then requiring payment with interest. Money is nothing but numbers,
be it numbers in a ledger book, on checks, or on dollar bills. Using
this process, most banks are legally allowed to lend out up to 50 times
of what they have on deposit, creating the money out of nothing and then
charging interest on it. You have to admit that it is quite a racket!.
And the Federal Reserve prints the paper money we use in circulation, the
Federal Reserve Notes, by having numbers printed on pieces of paper of
little value, since a few cents will print a $1 bill or a $10,000 bill
(at the same cost). Money is very cheap to make, and whoever has the
legal right to create the money in a nation can make a tremendous
The national debt
The United States has plunged itself terribly into debt since the Federal
Reserve Act was passed.
In 1910, before the passage of the Federal Reserve Act, the federal debt
was only $1 billion, or $12.40 per citizen. State and local debts were
By 1920, after only 6 years of Federal Reserve “shenanigans”, the
federal debt had jumped to $24 billion, or $228 per person.
In 1960, the federal debt reached $284 billion, or $1,575 per citizen,
and state and local debts were mushrooming.
By 1981, the federal debt passed $1 trillion, and was growing
exponentially, being the Banker's tripled the interest rates. State and
local debts were more than the federal, and with business and personal
debts, the total was over $6 trillion, 3 times the value of all land and
buildings in America.
October, 2005, the federal debt reached the $8 trillion mark ($26,672
for each U.S. citizen), and it is continuing to grow wildly out of
control. (For the fiscal year 2004, the interest payments on the U.S.
federal debt were $321 billion.) And that's only the peak of the
iceberg: the total debt (states, corporations, consumers) is over $41
United States National Debt (1938-2005)
Our people have become tenants and debt-slaves to the Bankers and their
agents in the land our fathers conquered. Our children and following
generations will be paying the debt for ever and ever!
are coming to a point where, eventually, the Government will own
nothing, the people will own nothing, and the Bankers will own
everything! We are becoming enslaved by the financial institutions of
And to think that way back in the 1700's, Thomas Jefferson had warned the
American people about such a thing happening. He said: “If the American people
ever allow private banks to control the issue of their private banks to
control the issue of their money... the banks and corporations that will
grow up around them (the banks) will deprive the people of their
property until their children will wake up homeless on the continent
their fathers conquered!”
It is conquest through the most gigantic fraud and swindle in the history
of mankind. And to think that the key to their power and wealth is
simply their legal right to create money out of nothing and to lend it
out at interest. If they had not been allowed to do that, they could
never have gained secret control of the nation.
Now it is predicted that a depression is to take place soon in the United
States. You might be asking, “Does this have anything to do with the
operation of the Federal Reserve?” You bet it does!
Let us go back to the 1930's when some of you probably experienced what
they called “The Great Depression”. During that time, America had
skilled and willing workers, good farmland, a highly efficient
transportation system, industries; all that was needed to form a rich
nation - all except an adequate supply of money to carry on trade and
Few people knew that the Bankers had purposely withheld $8 billion from
going into circulation by refusing loans to the population while, at the
same time, demanded payment on existing loans, so that money was rapidly
taken out of circulation and not replaced.
Because of this control on the money, America was put into deep trouble.
Jobs were waiting to be done, goods were available to be bought, but
there was no money. Food was thrown into the ocean while people were
starving. Twenty-five percent of the workers were laid off. The greedy
Bankers took possession of hundreds of thousands of farms, homes, and
Believe it or not, some of the economic experts of that time blamed the
moon for bringing about all the economic hardship. Others blamed the
politicians. Still others blamed the consumers for not wisely spending
their money. But the truth is: the Depression was purposely brought on
by the Bankers through their artificial control of the money.
To the end the Depression, the United States Government borrowed huge
sums of money from the Bankers for military equipment, which put a new
supply of money into circulation. People were hired back to work,
industries began to blossom, farmers sold their produce, and the economy
The same Bankers, who in the early 30's had no loans for peacetime
houses, food and clothing, suddenly had unlimited billions to lend the
Government for war purposes. The nation, which a few years earlier could
hardly feed its own people, was now producing bombs to send free to its
allies. Upsetting? You bet it is! And to think it is all because some
private Bankers, who call themselves the Federal Reserve, have the legal
right to create and control the money to run the country — as they so
President Woodrow Wilson had this to say about the Federal Reserve: “A
great industrial nation is controlled by its system of credit. Our
system of credit is concentrated. The growth of the nation and all our
activities are in the hands of a few men. We have come to be one of the
worst ruled, one of the most completely
controlled and dominated Governments in the world — no longer a
Government of free opinion no longer a Government by conviction and vote
of the majority, but a Government by the opinion and duress of small
groups of dominant men.”
before he died, Wilson is reported to have stated to friends that he had
been “deceived” and that “I have betrayed my country.” He was
referring to the Federal Reserve Act passed during his Presidency.)
We know the Bankers, the hidden controllers of the countries, purposely
instigate wars, financing both sides of the same war, to frighten the
people into going billions of dollars into debt for national defense.
They even finance Communism, and then turn around and have foreign aid
sent to stop the Communism that they financed!
The tens of thousands of young people who are killed, and the hundreds of
thousands who are crippled and morally corrupted from war, means nothing
to them. In fact, it doesn't even matter who wins or loses the war, as
long as all the countries involved are in debt to these Bankers.
It was Henry Ford Sr. who once said: “The youth who can solve
the money question will do more for the world than all the professional
soldiers of history.” I think you can understand why!
The Bankers purposely try to corrupt the people so it be easier to
control them, sweeping away anything that is honorable, such as morals,
religion, family, love of country. They encourage drug use, alcohol,
pornography, and crime. And they deliberately prevent real cures for
diseases, stir up social and racial unrest, and work to degrade the
Many of our politicians have become agents of the Bankers, while our two
political parties have become their servants. No matter who you elect
into high office, Rockefeller and his agents will be running the
Government behind the scenes — you can be sure of it! How else could
something so diabolical as the Federal Reserve, something so destructive
to the national interest of the people, be allowed to continue so long?
We know that the Bankers control all of the news media and information
centers, even the financial writers, to prevent people from learning the
simple truth about your money system. They blame the people for causing
the increase in debt and the inflation of prices, when they know that
the real cause is the debt-money system itself.
The ultimate solution
By now you must surely agree that the only real solution to solve our
financial problems is to put pressure on the Government to repeal the
Federal Reserve Act of 1913 and to demand that Congress again be allowed
to create and control the money of the nation, issuing interest and
debt-free “United States Notes” as the legal currency. John F.
Kennedy had begun to do this very thing just before he was assassinated!
a reform in the money system, no private Bankers would be able to rob
the people. Government banks, under the control of the people's
representatives, would issue and control all money and credit. A
$60,000 loan made a build a house would require only $60,000 in
repayment (with a little service fee), not $255,931.00 as it is now.
Everyone who supplied materials and labor to build the house would get
paid just as they are today, but the Bankers would not get $195,931.00
debt-free America would mean that mothers would not have to work but
could remain home with their children. Juvenile delinquency would
decrease rapidly. The elimination of the usury and debt would be the
equivalent of a 50% rise in the purchasing power of every worker. The
Bankers would no longer be able to steal billions of dollars from the
people every year in interest. America would become the envy of the
world, being prosperous and powerful beyond the wildest dreams of its
is imperative to take action now! You must do your duty as a patriotic
citizen. Love of country and concern for your children should make you
deeply interested in this, America's greatest problem. The future of the
country depends on each one of you.
our leaflets (its free) on the Federal Reserve do distribute in your
area, either on cars in parking lots or house to house. Speak to the
various organizations in your community to alert them about what is
taking place. Get everyone to subscribe to the “Michael” Journal to
learn more about monetary system.
editorials in your local newspapers. Above all, write to your elected
representatives in Government, and get others to also write, asking them
to work to repeal this Federal Reserve Act.
last but no least, get down on your knee to pray to Almighty God to free
America from the yoke of High Finance, so that it can again become
“one nation, under God, indivisible, with liberty and justice for
I would personally like to thank all those who have done research to
make the above presentation possible).