Andrew Carrington Hitchcock
Economists continually try and sell the public the idea that recessions or depressions are a natural part of what they call the “business cycle”. This timeline below will prove that is simply not the case. Recessions and depressions only occur because the Central Bankers manipulate the money supply, to ensure more and more is in their hands and less and less is in the hands of the people.
Central Bankers developed out of the ancient money changers and it is with these people we pick up the story.
48 B.C. Julius Caesar took back from the money changers the power to coin money and then minted coins for the benefit of all. With this new, plentiful supply of money, he established many massive construction projects and built great public works. By making money plentiful, Caesar won the love of the common people, but the money changers hated him for it and this is why Caesar was assassinated. Immediately after his assassination came the demise of plentiful money in Rome, taxes increased, as did corruption.
Eventually the Roman money supply was reduced by 90 per cent, which resulted in the common people losing their lands and homes.
30 A.D. Jesus Christ in the last year of his life uses physical force to throw the money changers out of the temple. This was the only time during the the life of his ministry in which he used physical force against anyone.
When Jews came to Jerusalem to pay their Temple tax, they could only pay it with a special coin, the half-shekel. This was a half-ounce of pure silver, about the size of a quarter. It was the only coin at that time which was pure silver and of assured weight, without the image of a pagan Emperor, and therefore to the Jews it was the only coin acceptable to God.
Unfortunately these coins were not plentiful, the money changers had cornered the market on them, and so they raised the price of them to whatever the market could bear. They used their monopoly they had on these coins to make exorbitant profits, forcing the Jews to pay whatever these money changers demanded.
Jesus threw the money changers out as their monopoly on these coins totally violated the sanctity of God’s house. These money changers called for his death days later.
1024 The money changers had control of Medieval England’s money supply and at this time were generally known as goldsmiths. Paper money started out and this was simply a receipt you would get after depositing gold with a goldsmith, in their safe rooms or vaults. This paper started being traded as it was far more convenient than carrying round a lot of heavy gold and silver coins. Over time, to simplify the process, the receipts were made to the bearer, rather than to the individual depositor, making it readily transferable without the need for a signature. This, also, broke the tie to any identifiable deposit of gold.
Eventually the goldsmiths recognized that only a fraction of depositors ever came in and demanded their gold at any one time, so they found out how they could cheat on the system. They started to issue more receipts than they had gold to back those receipts and no one would be any the wiser. They would loan out these receipts which were not backed by the gold they had in their depositories and collect interest on them.
This was the birth of the system we know today as Fractional Reserve Banking, and like this system of today this meant the goldsmiths were able to make astronomical amounts of money by loaning out, what was essentially fraudulent receipts, as they were for gold the goldsmiths didn’t even possess. As they gradually got more confident they would loan out up to 10 times the amount they had in their deposits.
To simplify how they made money on this, let’s give an example in which a goldsmith charges the same rate of interest to creditors and debtors. In this example a goldsmith would pay interest of 6% on gold you had deposited with them, and then charge 6% interest on money, I mean fraudulent receipts, you borrowed from them. As they would lend out ten times what you had deposited with them, whilst they’re paying you 6% interest, they are making 60% interest. This is on your gold. The goldsmiths also discovered that their control of this fraudulent money supply gave them control over the economy and the assets of the people. They exacted their control by rowing the economy between easy money and tight money.
The way they did this was to make money easy to borrow and therefore increase the amount of money in circulation, then suddenly tighten the money supply, taking it out of circulation by making loans more difficult to get or stopping offering them altogether.
Why did they do this? Simple, because the result would be a certain percentage of the people being unable to repay their previous loans, and not having the facility to take out new ones, going bankrupt and be forced to sell their assets to the goldsmiths for literally pennies on the dollar.
Today, this is all referred to with words like, “the business cycle,” “boom and bust,” “recession,” and “depression” in order to confuse the population of the money changers scam.
Centuries later, in 1921, Thomas Edison said in an article published in the New York Times on December 6, “If our nation can issue a dollar bond, it can issue a dollar bill. The element that makes the bond good, makes the bill good, also … It is absurd to say that our country can issue 30 million dollars in bonds and not 30 million dollars in currency. Both are promises to pay, but one promise fattens the usurers (bankers) and the other helps the people.”
1922 President Theodore Roosevelt who died in 1919 was quoted in the March 27th edition of the New York Times with the following statement:
“These International bankers and Rockefeller-Standard Oil interests control the majority of newspapers and the columns of these newspapers to club into submission or drive out of public office officials who refuse to do the bidding of the powerful corrupt cliques which compose the invisible government.”
The reason the New York Times ran this article, was due to the Mayor of New York, John Hylan, who had been reported in the same paper the previous day, March 26th, with the following statement, “The warning of Theodore Roosevelt has much timeliness today, for the real menace of our republic is this invisible government which like a giant octopus sprawls its slimy length over city, state, and nation … It seizes in its long and powerful tentacles our executive officers, our legislative bodies, our schools, our courts, our newspapers, and every agency created for the public protection … To depart from mere generalizations, let me say that at the head of this octopus are the Rockefeller-Standard Oil interest and a small group of powerful banking houses generally referred to as international bankers.
“This little coterie of powerful international bankers virtually run the United States Government for their own selfish purposes. They practically control both parties, write political platforms, make cat’s paws of party leaders, use the leading men of private organizations, and resort to every device to place in nomination for high public office only such candidates as will be amenable to the dictates of corrupt big business … these International Bankers and Rockefeller-Standard Oil interests control the majority of newspapers and magazines in this country.”
1923 On August 2nd, President Warren Harding died on a train in mysterious circumstances. The cause was given as either food poisoning or a stroke although no autopsy was performed. He was succeeded by his Vice-President Calvin Coolidge. President Coolidge continued Harding’s tax cutting and tariff raising policies.
This policy was so successful that the economy still continued to grow, and the huge Federal Debt built up during World War I, under Harding and Coolidge was reduced by 38% down to 16 billion dollars. This was when the Federal Reserve started flooding the country with money, increasing the money supply by 62%.
Representative Charles A. Lindbergh Sr. stated, “The financial system … has been turned over to … the Federal Reserve Board. That board administers the finance system by authority of … a purely profiteering group. The system is private, conducted for the sole purpose of obtaining the greatest possible profits, from the use of other people’s money.”
1924 Shortly before his death in this year, President Woodrow Wilson made the following statement in relation to his support of the Federal Reserve, “I have unwittingly ruined my country.”
1927 Republican Congressman, Louis T. McFadden, Chairman of the House Banking & Currency Committee from 1920 to 1931, commented on the Bank of England plan to recover its former position of dominance in world finance in the midst of the Great Depression in February 1931 when he stated, “I think it can hardly be disputed that the statesmen and financiers of Europe are ready to take almost any means to reacquire rapidly the gold stock which Europe lost to America as a result of World War I.”
1929 In April, Paul Warburg sent out a secret warning to his friends that a collapse and nationwide depression had been planned for later that year. It is certainly no coincidence that the biographies of all the Wall Street giants of that era: John D. Rockefeller; J. P. Morgan; Joseph Kennedy; Bernard Baruch; et al, all marveled at the fact these people got out of the stock market completely just before the crash and put their assets into cash or gold.
So, as all the bankers and their friends already knew, in August the Federal Reserve began to tighten the money supply. Then on October 24th the big New York bankers called in their 24-hour broker call loans. This meant that both the stockbrokers and their customers had to dump their stocks to cover their loans, irrespective of what price they had to sell them for.
As a result of this, the stock market crashed on a day that would go down in history as, “Black Thursday.” In his book, “The Great Crash: 1929″, John Kenneth Galbraith makes the following shocking statement, “At the height of the selling frenzy, Bernard Baruch brought Winston Churchill into the visitors gallery of the New York Stock Exchange to witness the panic and impress him with his power over the wild events on the floor.”
Congressman McFadden, was quite candid as to who was responsible. He stated of this crash, “It was not accidental. It was a carefully contrived occurrence … The international bankers sought to bring about a condition of despair here so that they might emerge as rulers of us all.”
1933 On March 4th, during his inaugural address, President Roosevelt made the following statement, “Practices of the unscrupulous money changers stand indicted in the court of public opinion, rejected by the hearts and minds of men …. The money changers have fled from their high seats in the temple of our civilization.”
However, later that year, President Roosevelt outlawed private ownership of all gold bullion and all gold coins with the exception of rare coins. Most of the gold in the hands of the average American was in the form of gold coins and this decree by Roosevelt was effectively a confiscation.
In small town America, the people did not trust Roosevelt. However, the people were given a simple choice. Either turn in your gold and be paid the official price for it of, $20-66 an ounce, or you will be liable for a $10,000 fine and a ten-year prison sentence.
Congressman McFadden stated, “Through the Fed the people are losing their rights guaranteed to them by the Constitution … common decency requires us to examine the public accounts of the government and see what kind of crimes against the public welfare have been committed … the people of these United States are being greatly wronged … Every effort has been made by the Fed to conceal its powers — but truth is — the Fed has usurped the Government … the sack of these United States by the Fed is the greatest crime in history … what King ever robbed his subjects to such an extent as the Fed has robbed us … it is a monstrous thing for this great nation of people to have its destinies presided over by a traitorous government board acting in secret concert with international usurers. When the Fed was passed, the people of these United States did not perceive that a world system was being set up here … a super state controlled by international bankers, and international industrialists acting together to enslave the world for their own pleasure.”
1935 All the gold held by American citizens had finally been turned in under President Roosevelt’s 1933 confiscation order at the price of $20-66 an ounce. Without explanation, the official price of gold was then raised to $35 per ounce. The only catch was that only foreigners could sell their gold at the new higher price.
Therefore Warburg and his banking friends who put their money into gold at $20-66 before the stock market crash and shipped it to London, could now ship it back and sell it to the United States Government for the new higher price. The money changers have a golden rule, “He who has the gold, makes the rules.”
1936 On October 3, Congressman McFadden was poisoned to death. This was the third assassination attempt on his life, he had suffered an earlier poisoning and had had shots fired at him. He had made very revealing statements about the Federal Reserve and had been warned to back off, but this great American Patriot put the people he represented before himself — as all elected officials are supposed to do — and was killed by the bankers as a result.
1937 With Fort Knox completed the previous year in order to hold the illegally confiscated gold, the gold now began to flow into it.
1938 With the Federal Reserve having been in control of the United States economy for 25 years under the pretext of promoting monetary stability, it has caused three major economic downturns — including the Great Depression.
As Nobel Prize winning economist Milton Friedman put it, “The stock of money, prices and output was decidedly more unstable after the establishment of the Reserve System than before. This evidence suggests that at least a third of the price rise during and just after World War I is attributable to the establishment of the Federal Reserve System … and that the severity of each of the major (monetary) contractions — 1920-21, 1929-33, and 1937-38 — is directly attributable to acts of commission and omission by the Reserve authorities … “Any system which gives so much power and so much discretion to a few men, (so) that mistakes — excusable or not — can have such far-reaching effects is a bad system. It is a bad system to believers in freedom just because it gives a few men such power without any effective check by the body politic — this is the key political argument against an independent central bank.” Milton Friedman would also state, “I know of no severe depression, in any country or any time that was not accompanied by a sharp decline in the stock of money, and equally of no sharp decline in the stock of money that was not accompanied by a severe depression.”
1941 Sir Josiah Stamp, director of the Bank of England during the years 1928-1941, said, “The modern banking system manufactures money out of nothing. The process is perhaps the most astounding piece of sleight of hand that was ever invented. Banking was conceived in iniquity and born in sin. Bankers own the Earth. Take it away from them, but leave them the power to create money, and with the flick of the pen they will create enough money to buy it back again. … Take this great power away from them and all great fortunes like mine will disappear, and they ought to disappear, for then this would be a better and happier world to live in. But if you want to continue to be slaves of the banks and pay the cost of your own slavery, then let bankers continue to create money and control credit.”