On November 22, 1910, seven men secretly boarded a private railcar in New Jersey. Between them, they represented more than 25% of the entire world’s wealth. Under the cover of darkness, they stole away to Jekyll Island, Georgia where they proceeded to lay the groundwork for the mysterious entity known today as the Federal Reserve. What exactly is the Federal Reserve? And why is it, perhaps, the most incredible conspiracy of all time?
The Federal Reserve Conspiracy?
The Federal Reserve, or the Fed, is a bonafide, wide-open conspiracy. It was hatched in 1910 by bankers in order to increase profits at the public’s expense. In the following years, representatives of those same bankers sold it to the public as a way to protect people from the banks. It was unconstitutional at the time of its passing and it remains unconstitutional to this day.
Its actions have exaggerated the boom-bust cycle, leading to nearly twenty recessions and/or depressions (including the current one). It enabled the creation of America’s massive debt, stole money from the poor, and along the way, wiped out 96% of the public’s purchasing power. Wow! How can such an institution still exist? The answer lies in the details. The Fed doesn’t hide its existence. But it is an incredibly complicated beast. Few know about it. Even fewer understand it.
It is well that the people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning – Henry Ford
How does the Federal Reserve Work?
The Fed is America’s central bank. It is a monopoly, having complete control over the setting of interest rates and the printing of money. The Fed and its member banks generate profits by printing money, loaning this money to others, and then collecting interest on it. This is possible because U.S. dollars are inherently worthless. They do not represent claims on gold or silver or anything else. They are just pieces of paper. The only reason they have any value is because the U.S. government requires citizens to use them.
Paper money eventually returns to its intrinsic value…zero – Voltaire
The Federal Reserve Conspiracy: Winners & Losers?
So, the Fed is able to create as much money as it wants and profits handsomely from this practice. But printing money does not create value for the public. Instead, it dilutes the worth of existing money, causing prices to rise (this is often called inflation). This is a “hidden tax.” And like all taxes, there are winners and losers. Some of the winners include:
- Bankers: As I already mentioned, banks make enormous profits by creating money out of thin air and charging people, businesses, and governments to borrow it.
- Politicians: By printing money, the Fed allows politicians to spend money without raising actual tax rates.
- The Well-Connected: Government employees and well-connected individuals and businesses are the first ones to receive newly-printed money. They are able to spend it before it loses purchasing power.
The losers include everyone else, most tragically savers, poor people, and those on fixed incomes. These individuals suffer from the hidden tax of inflation and thus, lose purchasing power that they can’t afford.
Government spending is always a “tax” burden on the American people and is never equally or fairly distributed. The poor and low-middle income workers always suffer the most from the deceitful tax of inflation and borrowing – Congressman Ron Paul
Some might forgive all of this if the Fed managed to provide a financially stable, growing economy over the long haul. However, since its inception, America has suffered eighteen recessions or depressions.
Guerrilla Explorer’s Analysis
For nearly one hundred years, the Fed has wreaked havoc on the American economy. It has stolen wealth from ordinary Americans and redistributed it to bankers and those with connections. It has lent endless amounts of money to politicians, leading to the creation of a massive public debt. And yet, it has failed to stabilize the economy.
The Federal Reserve is a genuine, ongoing conspiracy. And remarkably, it exists in plain sight, protected by a shroud of secrecy and poor understanding amongst the general public. However, all of that is starting to change. For the first time in decades, the Fed is under real pressure, led by the efforts of Ron Paul and others. Will it survive the onslaught? Or will someone finally find a way to end the Fed?