While many Americans believe the U.S. Federal Reserve is the
caretaker of the country’s monetary system, its also believed to be one
of the worst financial institutions ever created. In 2022, amid a gloomy
economy, war, and a number of global crises, the possibility of a great
monetary shift has increased. The preceding years filled with panic,
are very similar to the years that led to the creation of the Federal
Reserve System.
The Panics That Led to the Last Transition of Wealth May Help Us Understand Today’s Monetary Transformation
During the last few years, just before the onset of Covid-19, discussions about a “Green New Deal,” a “Great Reset,” and a “New Bretton Woods Moment”
have increased a great deal. These topics have made people believe a
great transition of wealth is taking place, and the consortium of modern
central banking is bolstering the change. Many people wonder how these
changes happen so fast, and why the public simply allows such
transformative changes without question. The best way to understand such
changes is to look at the great transition of wealth that took place in
the late-1800s into the mid-1900s.
The first historical moment that took place back then was the
creation of the Federal Reserve System. It is well documented that the
Fed was born on December 23, 1913, after president Woodrow Wilson signed
the Federal Reserve Act, but the central bank’s inception started years
before Wilson’s Act. What most people don’t know is that J.P. Morgan
and the “Money Trust”
or the “House of Morgan” helped fuel the creation of an American
central bank. None of the evidence is hidden from the public as the Pujo
Committee, a congressional subcommittee that operated from 1912–1913
investigated the group in great detail.
In the late 1800s, Americans grew untrustful of banks as a financial cartel had formed that used American deposits for bucket shops
and proposition bets. Financial manipulation was growing wildly and in
1896, Morgan created the Morgan-Guarantee Company. Over the next decade
up until the summer of 1907, the U.S. economy was extremely volatile.
While the ‘Panic of 1907’ or the ‘Knickerbocker Panic’ is well known in
history. There were earlier panics
and bank runs in America in 1873 and 1893. Morgan and his friends
reportedly monopolized a great deal of businesses, and more specifically
Morgan controlled close to half of the country’s railroads.
Tim Sablik and Gary Richardson from the Fed’s Bank of Richmond branch
explain that the “Panic of 1873 arose from investments in railroads.”
That summer in 1907, the U.S. economic system broke
and a large swathe of financial institutions and corporations went
bankrupt. The biggest failures stemmed from Westinghouse Electric
Company and Knickerbocker Trust in New York City. Richardson and Sablik
noted that the Panic of 1884 derived from two major New York City
financial firms failing. Both of the bank’s owners made “speculative
investments” and Marine National Bank and Grant and Ward went bust.
The U.S. Treasury tried to save the day in 1907 by funneling millions
of dollars into failing financial institutions. While liquidity was
horrid for American banking customers and depositors, a number of
businesses and banks created cash substitutes. After the Treasury attempt and cash substitutes did not work, J.P. Morgan stepped in
to fix the situation. Morgan and America’s leading finance men
channeled lots of money into weak banks with help from the government
and the country’s business leaders.
3 Financial Crises, Jekyll Island, and the Aldrich Plan — Are Panics and Crises Preceding Today’s Monetary Shift?
The three financial crises (1873, 1893, 1907) led a majority of
Americans to believe the United States banking system was officially
corrupt. After the Panic of 1907, bureaucrats in collusion with a number
of U.S. business leaders, convinced the public the banking system
needed reform. After all, the public was fed up with banks spending
their deposits on speculative investments and bucket shops, and they
were growing tired of bank runs. U.S. politicians then moved toward
strict regulatory reform and Congress introduced stop-gap legislation and the National Monetary Commission.
The Aldrich-Vreeland Act (1908) allowed U.S. bankers to start
national currency associations, in the event a national emergency of
liquidity arose. The initiation of the Federal Reserve was sparked by
the liquidity crises mentioned above, and through the Aldrich-Vreeland
Act, banknotes were backed by the institution’s securities and
government bonds. Government library documents
further show the Panic of 1907 “made people want a powerful central
bank that could ‘protect’ the common man from the ‘abuses of the Wall
Street bankers.’”
Similar to the recent economic calamities America is facing today, with Covid-19 lockdowns and the disruptions
from the war in Europe, the previous financial crises in 1873, 1893,
and 1907 invoked one of the largest monetary shifts in history. While
most Americans are taught in high school that the Fed’s system manages
the money and credit throughout the country, G. Edward Griffin’s
600-page book “The Creature from Jekyll Island”
paints a different story. It explains how the “House of Morgan” and a
favorable U.S. president colluded to create the U.S. central bank.
A descendent of the Rockefellers, Nelson Aldrich was also
instrumental in the secret meeting at the Jekyll Island Hunt Club in
Georgia. The Federal Reserve System was crafted by Morgan’s ‘Money
Trust,’ select politicians, and Nelson’s foundational design called the
“Aldrich Plan.” In recent times, descendants of the Rockefellers from
the Rockefeller Foundation have been accused of designing plans called
“lock step” in 2010, which is eerily similar to the Covid-19 lockdowns that happened ten years later. The New York-based philanthropy report discusses how governments could control an influenza-like pandemic through lockdown measures.
While Wilson’s December 23, 1913 signing is well documented, most
Americans don’t know about the secret meeting held on Jekyll Island in
1910. History teachers and school books do not discuss the years before
the Fed was created. But those who do know about how the Fed started and
hold the belief that it continues to manipulate the free market, want the central bank abolished.
“The Fed has become an accomplice in the support of totalitarian
regimes throughout the world,” Griffin writes in his Jekyll Island book
published in 1994.
The previous years that led to the consortium of modern central
banking and the Fed are very similar to today’s economic crises, and
it’s safe to say panic fuels changes. If a great transition of wealth is
taking place today, the signs show a transformative outcome, planned
years ago, may very well be on the horizon. It’s uncertain what the
monetary shift will look like, but looking back at history and things
like the creation of the Federal Reserve system, clearly shows that
certain people are likely to benefit more than others.
