|Planning For Economic Collapse (II): Scrapping The Gold Standard
By Albert V. Burns
How do you go about gaining control of and then destroying the freest and most productive economy in the history of mankind. Those who were planning to do just that, had listened to Thomas Jefferson (even though the vast majority of Americans had not!) Thomas Jefferson had warned his country that: "If the American people ever allow private banks to control the issue of their currency, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the people of all their property until their children will wake up homeless on the continent their fathers had conquered."
In 1913, Americans were sleeping. They had been propagandized for more than a decade that the United States needed a central bank to "stabilize" the economy. In 1908, a banking panic was even engineered to convince people this was true. The complete story of just WHO was behind the conspiracy and HOW it was brought to pass is absolutely fascinating, but would take far too much space to recount here. The best book I know of on the subject is called "The Creature From Jekyll Island" by G. Edward Griffin. In it he recounts the history of central banking in this country from its earliest days up to the present.
One of the most influential people who achieved passage of the Federal Reserve Act was "Colonel" Edward Mandell House. House was a political manipulator with no equal. He worked through President Woodrow Wilson while always remaining a shadowy figure in the background. (He was still working behind the scenes up to and during the administration of Franklin Roosevelt.)
The other primary figure responsible for the Federal Reserve System was Paul Warburg. Warburg came to this country as a multimillionaire in 1902 and became a partner in the banking firm of Kuhn, Loeb and Company in New York. He did not however devote his time to banking, but immediately started the work of convincing the American people that there was a real need for "monetary reform" and the establishment of a central banking system. He, of course, did not let the people in on the little fact that this system was to be patterned after the central banking systems of Europe which had been secretly manipulated by international conspirators for almost two hundred years.
In 1913, a truly disastrous year for the United States, the Federal Reserve Act was finally passed into law. Paul Warburg was immediately made the first Chairman of the Board of Governors of the Federal Reserve.
(Parenthetically, Paul Warburg’s partner, Jacob Schiff who was also active in the conspiracy to get a central bank in this country, was credited by Schiff’s own grandson with spending $20 million to bankroll the Communist revolution in Russia. Warburg’s brother, Max Warburg, head of the Rothschild bank in Hamburg was also one of the major financial backers of Lenin and Trotsky to bring about the 1917 coup.)
To the average American, the thought of bankers financing the Communist revolution borders on insanity. However, they knew what they were doing. They knew that there was nothing to fear. Lenin, himself, in a very revealing piece he wrote before the revolution titled: "Will The Bolsheviks Retain State Power" (Pg.20 & 21, Sept. 25, 1917) stated "Here we have approached another side of the question of state apparatus. Besides the preponderant "repressive" machinery, the standing army, the police, and the officialdom, there is in the modern state a machinery that is closely connected with banks and syndicates; fulfilling as it does a great mass of work of accounting and record keeping, if one may so express it. This machinery cannot and must not be broken up It must be forcibly freed from subjection to the capitalists; the latter must be cut off, broken, chopped away from it with threads transmitting their influence; it must be subjected to the proletarian Soviets; it must be made wider, more all-embracing, more popular. And this can be done by relying on the achievements already attained by large scale capital (as, indeed, the proletarian revolution in general can only attain its aim by taking these achievements as its basis.
"Capitalism created the apparatus for accounting, the banks, syndicates, post offices, consumer’s societies, unions of employees. Without the banks, Socialism could not be realized.
"The big banks are that "state apparatus" which we need for the realizations of Socialism and which we take ready made from capitalism....One state bank as huge as possible, with branches in every township, in every factory- this is already nine-tenths of the Socialist apparatus." (Emphasis added.)
This was the system which had been foisted upon the American people in 1913. After a short delay to set the system up, those who were running the Fed put their new control mechanism to work with a vengeance!
The Fed did this by keeping interest rates artificially low throughout most of the 1920s. They expanded credit greatly and encouraged borrowing to help with the over-expansion of the economy. The economy was pumped up like a giant balloon between June, 1921 and June, 1929 with the expansion of the money supply by 8 percent a year. Then, in June, 1929, the Fed simply "stuck a pin" in the balloon by contracting credit and collapsing the money supply. Between June and October, 1929, those who were part of the Insider group quietly got out of the stock market, at or close to its peak. Then in October, the financial house of cards collapsed- as it was intended to do: (the inflation and deflation which Jefferson had warned of.)
The catastrophic results have been widely reported but little understood. The maneuver set the stage for the nomination and election of Franklin Roosevelt (with Colonel House manipulating things to bring this about.) Once Roosevelt was elected, further disastrous moves were possible.
One of the first acts of Roosevelt was to convince Congress to abandon the gold standard which supported the currency of the United States. As long as the dollar was bound to gold, massive inflation of the currency was impossible. Writing in the Freeman magazine for July 13, 1953, Professor Ludwig Von Mises said, "The gold standard did not collapse. Governments, anxious to spend (even if this meant spending their countries into bankruptcy), intentionally aimed at destroying it."
The first step in releasing our money supply from the strictures of the gold standard took place March 9, 1933, FIVE days after Roosevelt was inaugurated, when Congress granted WIDE discretionary power over money to the President. On April 5th, FDR issued an Executive Order (#6102) which ordered Americans under heavy penalties to surrender THEIR gold to banks. For their gold, they were given paper money which they were told would be redeemed with gold after the crisis was over. Not a word was said about devaluing the dollar and scrapping the gold standard.
On June 5, 1933, Congress (at the request of the President) repudiated the gold redemption clause IN ALL GOVERNMENT OBLIGATIONS! Gold redemption clauses in private contracts were invalidated at the same time. Next followed the Gold Reserve Act of January 30, 1934 which gave to the government ownership of ALL gold. For the gold, businesses and people were given "gold certificates." These gold certificates had NO stated value. As reported by Benjamin Anderson, in his book, Economics and Public Welfare, pgs. 348-349, when he testified before the Senate Committee on Banking and Currency protesting the vague nature of these "certificates", he was taken aside by one of the Senators who sided with the Administration. The Senator grinned and said, "Doctor, you don’t understand about these certificates. These are not certificates that you can get gold. These are certificates that gold has been taken away from you!"
Now that the gold was all safely in the hands of the government, the rest was a walk in the park! Roosevelt officially DEVALUED the dollar by simply raising the price of gold from $20 per ounce to $35 per ounce. Instantly, the government made a "profit" of $2.8 billion since the dollars it had given the people in exchange for the gold were now worth that much less.
And, you understand, this was all being done to help the poor! We will continue this discussion in the next segment.
Albert V. Burns writes from Utah and is a regular columnist for the Spanish Fork Press. He has an extensive knowledge of the conspiracy which has been working so hard to destroy this nation and incorporate it into a one world government. He has developed an extensive personal research library and the knowledge to find what he needs, to write his columns. Albert V. Burns can be reached at: email@example.com.
Published originally at EtherZone.com : republication allowed with this notice and hyperlink intact. The views expressed in this article are not necessarily those of Alex Jones or Paul Joseph Watson.