While many Americans believe that the US Federal Reserve is the caretaker of the country’s monetary system, it is considered one of the worst financial institutions ever created. In 2022, amidst a depressed economy, war and several global crises, the prospect of a great monetary turnaround has increased. The past years of panic are similar to the years that led to the creation of the Federal Reserve System.
The panic that led to the eventual transition of wealth can help us understand today’s monetary change
During the past few years, just before the onset of COVID-19, discussions about the “Green New Deal”, the “Great Reset” and the “New Bretton Woods moment” have increased tremendously. These themes have led people to believe that a major transformation of money is taking place, and that the confluence of modern central banking is fueling the change. Many people wonder how these changes happen so fast, and why the public allows such transformational changes without question. The best way to understand such changes is to look at the great transition of wealth in the late 1800s to the mid-1900s.
The first historical moment that happened at that time was the creation of the Federal Reserve System. It is well documented that the Fed was born on December 23, 1913, when President Woodrow Wilson signed the Federal Reserve Act, but the establishment of the central bank began several years before Wilson’s Act. What most people don’t know is that JPMorgan and the “Money Trust” or “House of Morgan” helped fuel the creation of the US central bank. No evidence is hidden from the public as the Pujo Committee, a Congress subcommittee that operated from 1912–1913, investigated the group in great detail.
In the late 1800s, Americans grew distrustful of banks as a financial cartel was formed that used American deposits to bucket shops and offer bets. Financial manipulation was rampant, and in 1896 Morgan created the Morgan-Guaranteed Company. Over the next decade until the summer of 1907, the US economy was extremely unstable. Whereas the ‘Terror of 1907’ or ‘Knickerbocker Panic’ is well known in history. The first panics and bank runs in America were in 1873 and 1893. Morgan and his friends reportedly monopolized a great deal of businesses, and Morgan in particular controlled half of the country’s railroads.
Tim Sablick and Gary Richardson from the Fed’s Bank of Richmond branch explain that “the Panic of 1873 was born out of investment in railroads.” In the summer of 1907, the American economic system collapsed and a large group of financial institutions and corporations went bankrupt. The biggest failures came from the Westinghouse Electric Company and the Knickerbocker Trust in New York City. Richardson and Sablick noted that the Panic of 1884 stemmed from the failure of two major New York City financial firms. Both owners of the bank made “speculative investments” and Marine National Bank and Grant & Ward were busted.
The US Treasury tried to save the day in 1907 by funding millions of dollars in failed financial institutions. While liquidity was dire for US banking customers and depositors, many businesses and banks created cash alternatives. After the Treasury effort and the cash option didn’t work, JPMorgan stepped in to correct the situation. Morgan and America’s leading finance men pumped a lot of money into weak banks with the help of the government and the country’s business leaders.
Financial Crisis, Jekyll Island and the Aldrich Plan – Are there panic and crisis before today’s monetary turnaround?
The three financial crises (1873, 1893, 1907) led most Americans to believe that the banking system of the United States was officially corrupt. After the Panic of 1907, bureaucrats, along with several American business leaders, convinced the public that the banking system needed reform. Eventually, the public was fed up with speculative investments from banks and spending their deposits at bucket shops, and they grew tired of bank runs. American politicians then moved toward stricter regulatory reform, and Congress introduced stop-gap legislation and the National Monetary Commission.
The Aldrich-Vreeland Act (1908) allowed American bankers to start a national monetary union, in the event a national emergency of liquidity arose. The Federal Reserve was triggered by the liquidity crisis mentioned above, and through the Aldrich-Vreeland Act, banknotes were backed by institution securities and government bonds. Government library documents further show the terror of 1907 “the people needed a powerful central bank that could ‘protect’ the common man from the ‘misbehaviour of Wall Street bankers’.”
Similar to the recent economic disasters that America is facing today, the previous financial crises in 1873, 1893, and 1907 called for one of the largest monetary changes in history, with disruptions from the Covid-19 lockdowns and war in Europe. Did. While most Americans are taught in high school that the Fed’s system manages money and credit throughout the country, G. Edward Griffin’s 600-page book “The Creature from Jekyll Island” offers a different story. It tells how the “House of Morgan” and a friendly US president colluded to create the US central bank.
The Rockefellers’ descendant, Nelson Aldrich, was also instrumental in the secret meeting at the Jekyll Island Hunt Club in Georgia. The Federal Reserve System was designed by Morgan’s ‘Money Trust’, select politicians, and Nelson’s foundational design called the “Aldrich Plan”. In recent days, the Rockefeller Foundation’s descendants of the Rockefellers have been accused of designing plans called “Lock Steps” in 2010, similar to the one ten years after the COVID-19 lockdown. The New York-based Philanthropy Report discusses how governments can control pandemics like influenza through lockdown measures.
While Wilson’s signature of December 23, 1913 is well documented, most Americans do not know about the secret meeting that took place on Jekyll Island in 1910. History teachers and school books do not discuss the years before the Fed was formed. But those who know about the introduction of the Fed and believe that it continues to manipulate the free market, want the central bank to be abolished. “The Fed has become an ally in support of totalitarian regimes around the world,” Griffin wrote in his book Jekyll Island, published in 1994.
The union of modern central banking and the Fed in years past is akin to today’s economic crises, and it’s safe to say that change fuels panic. If a major change of money is taking place today, signs show a transformative outcome that, as planned years ago, could very well be on the horizon. It is uncertain what monetary change will look like, but looking at history and things like the creation of the Federal Reserve System clearly shows that some people are likely to benefit more than others.
What do you think about the wealth transition today and compare it to the panic and crisis that happened 100 years ago during the last great monetary transition? Let us know what you think about this topic in the comment section below.
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