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Understanding The Federal Reserve System, The Illuminati Banking Industry and The History of National Debt

The Ultimate Yellow Brick Is GOLD!

"Understanding The Federal Reserve System & The History of National Debt"

The Gross National Debt

Right now, the U.S. deficit is over nine Trillion dollars! The government and corporations are raising prices and telling us that the cost of living is going up every year. We are told that inflation is about 5%. But real-estate is not factored in. True inflation is about 10-13% per year. But why? Why does the cost of living rise so much? Who do we owe all this money to? What is the real reason for the money crisis? Let's start at the beginning.

What is Money?

Back in the good old days, there was no such thing as a dollar bill. People would exchange goods and services for other goods and services. But of course, sometimes the person who has what you what, may not want what you have. So this is where "money" comes in. Money can be any item, as long as everyone agrees on the value.

The Origin of Inflation & National Debt

Around 1000 AD In England, gold and silver were the popular forms of exchange (money). Now, if you were a high roller, it was difficult to keep and transport all of your money. So, we see that goldsmiths appeared. They would offer to hold peoples gold and silver, and they would give people a receipt for the amount of gold they were holding. These receipts were convenient to use so people just began trading them instead of the gold and silver since the receipts were redeemable at the goldsmith's place of holding.

The goldsmiths after a while noticed that people weren't coming that often to redeem their gold and silver. So like true "business men" they decided to print up more receipts. They would take some of the receipts to buy things and others to loan them out and collect interest!

This printing up of extra receipts would devalue the receipts that their depositors had given them in confidence. THIS IS THE ORIGIN OF INFLATION! Generally speaking, the cost of living stays the same. It is our dollar bill (receipts of money) that declines causing inflation. This is the real reason for the money crisis.

Based on the numbers, the goldsmiths knew that they could loan out 10 times as much as they had in stock. This began the system called fractional reserve banking. Even today, banks are allowed to loan out 10 times what they have.

The goldsmiths would also take the title to real property as collateral (sounds like a house note to me). They would then reduce the receipts in circulation, making money scarce. Then they would raise their interest rates. This would cause a recession or a depression. Then, they could recall their debts, foreclose on property and increase their wealth and prosperity. And of course, if a goldsmith can do business with governments and create a "national debt" that is owed to them, they can really make a killing!

People think that depressions and recessions are just natural cycles in our economy. I've got some bad news. Depressions don't come out of thin air. They are manipulated by our modern day goldsmiths, who control the economies currency.

Remember just a few short years ago when you could have a -500 Beacon Score, make $5 an hour at McDonalds and C, D, and F lenders would give you a no money down, HIGH interest only loan? Or, how about an adjustable rate mortgage that is low now, but will explode later? Anyone and everyone could get a house. Now the foreclosure rate is ridiculous!

Now the banking industry is pretending that this was an "honest" accident. They got overzealous during the boom, and accepted loans that they shouldn't have. I was born in the morning, not THIS morning! Now, on with the story.

The English Revolution of 1642

Around 1100AD, King Henry produced what was called "Tally sticks". These sticks were made out of wood. King Henry accepted them as payment and they were a trusted form of exchange. This worked well for hundreds of years. In 1642 the goldsmiths of England had a hand in the English Revolution. They financed Oliver Cromwell's pursuit and execution of King Charles. The revolution ended in 1649 but England was caught up in wars for over 40 years after that.

This left them in a state of financial depravity so, of course, they went to borrow money (backed by almost nothing) from the goldsmiths. The goldsmiths gladly obliged and they established The Bank of England in 1694. Despite the name, this bank was privately owned by the goldsmiths (who's names remained secret).

Now, the England government could borrow all that it wanted. The debt that they incurred was secured by public taxes. In four years the national debt went up over 10 times what it was in 1694.

The House of Rothschild

A goldsmith named Amschel Moses Bauer opened a counting house in Frankfurt, Germany in 1743. He placed a Roman eagle on a red shield over the door prompting people to call his shop the Red Shield Firm pronounced in German as "Rothschild".

His son (Mayer Amschel Bauer) went to work at a bank owned by the Oppenheimers. While working for the Oppenheimers, Rothschild learned that loaning money to people was small change. The BIG money came in loaning money to governments. This money would always be secured by public taxes. Mayer Bauer later changed his last name to Rothschild when he inherited his father's business

The American Revolution

Britain (during the 1700's) was a very powerful nation but heavily in debt (sound familiar?). Since the Bank of England was formed, they had had a lot of wars (war is great for the economy). So in order to pay the interest on their debt they came up with a program to get money from the American colonies.

Unfortunately for Britain, the American colonies decided to print up their own debt free money (colonial script). The colonies actually flourished at this time as they controlled their own purchasing power and they were essentially free from the Bank of England.

So, The Bank of England got the British parliament to push for the passing of the Currency Act of 1764. This act made it illegal for the American colonies to print their own money and forced them to pay taxes to Britain in silver and gold (which there was already a shortage of)

Here is what Ben Franklin said in his autobiography.



The Americans proceeded with passion in their fight for freedom. Unfortunately, they were proceeding to lose the war with big bad Britain. George Washington was convinced by Alexander Hamilton (who was a Rothschild agent) to let the House of Rothschild finance him in the war.

This was the same Rothschild who brokered a deal between Prince William of Germany and the Throne of England in which the prince sent 16,800 Hessian soldiers to help England STOP the revolution in America! Rothschild was also supposed to pay the German soldiers, but he never did. America prevailed.

More Wars

Mayer Amschel Rothschild, 1790

Now of course, after the Revolutionary War, there was a debt to be paid. So Mr. Hamilton set up the First Bank of the United States (privately owned by Rothschild and others) in 1791, to pay off the national debt from the revolutionary war (and to bleed the citizens to death). Twenty years later, the charter of the bank was not renewed. One year later, the British attacked and began The War of 1812.

Another attempt was made by the bankers in 1816. This would be the Second Bank of the United States. Andrew Jackson vetoed the move to renew the Charter of the Bank of the United States in 1836. An attempt was made to kill Andrew Jackson, but he survived.


Jekyll Island & More History of The Banking Industry(U.S.A.)

In 1906, the Stock Market reached its highest peak ever. In March, 1907, the Stock Market crashed. It crashed again in October of that year. This was followed by bank closings. This was engineered by Jacob Schiff (another Rothschild agent) and the Rockefellers (the REAL oil tycoons). Their manipulation of the market crippled various corporations and they bought them up in distress sales.

Also, in 1907, J.P. Morgan began to put out rumors that a major NY bank had gone bankrupt. This caused mass hysteria. People were so afraid that they ran to the banks to get their money. The banks (who were using fractional reserve tactics) then had to recall all of their loans, which caused massive foreclosures and bankruptcies.

This was The Panic of 1907. This panic led to a congressional investigation in 1908 led by Senator Nelson Aldrich (who would eventually become John D. Rockefeller's father-n-law). This investigation recommended a central bank to keep something like this from happening again.

In November of 1910, eight men took a secret trip to an exclusive private club on Jekyll Island to write a central banking act.

  • Benjamin Strong: President of Morgan Bankers Trust Company.

  • Charles Norton: President of Morgan's First National Bank of New York.

  • Henry P. Davidson: Senior partner of J.P. Morgan.

  • Paul Warburg: Partner at Kuhn, Loeb and Co.

  • A. Piatt Andrew: Assistant Secretary of the Treasury & special assistant of the National Monetary Commission.

  • Frank Vanderlip (a Rockefeller): President of Kuhn, Loeb's National City Bank of New York.

  • Senator Nelson Aldrich (also a Rockefeller): Head of the National Monetary Commission.

  • Shelton: Senator Nelson Aldrich's private secretary.

The Jekyll Island Club was chosen as the place to draft the plan for control of the money and credit of the people of the United States. They spent a week at the club as J.P. Morgan's guests writing up this plan.

Now obviously, they couldn't name the bank "Private Bank that owns the United States" because people may get a little upset. So, the name, "Federal Reserve Bank" came into place. This would imply that the bank would be a government institution. But this bank would be no more federal than Federal Express!

Woodrow Wilson made a deal with the bankers to sign the Federal Reserve Act in exchange for financial support and manipulation in his presidential campaign. Woodrow Wilson became president in 1912.

The unconstitutional (only Congress should be able to coin money) Federal Reserve Act was passed on December 23,1913, when most congressmen were at home. The ones who stayed were bribed by the international bankers to pass the act. This is a chart of Who owns the Federal Reserve Bank. The public was told that financial instability and inflation would be no more. Read down about two lines.


The Great Depression started in 1929. This was also manipulated by our modern day goldsmiths. Now at that particular time, if you had a dollar bill, it would read like this on the front, "The United States of America will pay to the bearer on demand one dollar. This note is legal tender for all debts, public and private and is redeemable in lawful money at the United States Treasury or any Federal Reserve Bank"

So, during the early thirties people (not trusting the deflated dollars) went running to the banks to redeem their gold. The banks (who were under the fractional reserve system) were about to be exposed, so Franklin Roosevelt on March 6,1933, declared a national emergency (watch out for those national emergencies!), and shut down all the banks for two days.

On March 9, 1933, Congress passed the Emergency Banking Act. They conferred on the president the powers of the War Powers Act & Trading With The Enemy act of 1917 (which places all money matters of American citizens under his jurisdiction). Then Roosevelt confiscated all of the people's gold (They had to turn their gold into the banks and receive notes.).

It would be illegal for Americans to own gold until 1975 ($10,000 fine or 10 years in prison). There was one exception, which was certified gold (collectable gold valued above it's metal content).

John F. Kennedy

On June 4, 1963, JFK signed Executive Order 11110 and printed up 4.3 billion dollars of interest free currency that was backed by silver! On November 22, 1963, Kennedy was assassinated. Shortly after his death, the Federal Reserve started issuing new notes and taking the old ones out of circulation. These notes no longer claimed to be redeemable in gold at a reserve bank.

Your dollar now says "This Note Is Legal Tender For All Debts, Public And Private". It is redeemable for NOTHING! To this day, we don't know where the gold reserves are!

Understanding The Federal Reserve System

This is how the system works. The government will request an amount of money from the Federal Reserve (let's say 1 billion dollars). The Federal Reserve will then go to the Bureau of Engraving and Printing and get them to print 1 billion in Federal notes. The Bureau will charge them approximately three cents per bill printed (I guess that's better than going to Kinko's). The Fed will write the Bureau a check (backed by nothing) for the fees. Then they will loan the U.S. Treasury the 1 billion dollars and charge interest on it!

It is impossible to pay the interest on the money loaned from the Fed, because you can't pay back more money than has been printed. So the Federal Reserve then has to take collateral. Well, what is the collateral? WE THE PEOPLE! The people of the U.S. (our property and wealth) are the collateral to the Federal Reserve. That's why they say that "WE" are in debt.

This is why the fraudulent unconstitutional yet constitutional tax system is set up. This is why the financial services industry and the real estate industry (which work for the banks) have instilled us with this B.S. "borrow money and build net worth and security" mentality.

This same ideology of "borrowing power" is "security" is what was presented to the U.S. government to install the Federal Reserve and steal the wealth of a nation! We and our property are nothing more than collateral for the Federal Reserve goldsmiths. They are playing us like a clarinet.

The Bank of England, the Bank of France, the Bank of Italy, the Reich Bank of Germany, the Bank of Canada, the Reserve Bank of Australia, the European Central Bank and many more are all privately owned banks by the same people!

So here we are today. Our dollar bills are really worth about four cents. And that four cents is backed by nothing. Before the Great Depression, the stock market reached a high and then crashed. Then there was a major real estate boom followed by a crash. Back then you could have bought a $100,000 home for $10,000!

This scenario seems to be happening right before our eyes. Many economist are warning of potential big problems ahead in our economy.

According to The Golden Shield (Real Estate Crash Issue) (http://goldenshield.org), "the Morgan Stanley chief economist told a group of insiders that there is only a 10 percent chance that the U.S. can avoid an ECONOMIC ARMAGEDDON". Morgan Stanley? I guess they would know!

The current debt bubble that America is in is much bigger than the one before the Great Depression. Maybe it will happen, and maybe it won't. It probably will. Unfortunately we have no control over this because the goldsmith's are in total control of our economy. So what can YOU do?

Stop Paper Chasing!

The dollar is no longer almighty! Invest in gold/precious metals. Silver and gold (which are universally valued) retain their value during inflation. You can't print up extra gold and silver! When investing in precious metals, you can buy coins or you can go into precious metal investments.

If you buy gold coins, I would suggest buying "certified" gold. This was exempted from the last confiscation. But knowing that our diabolical rulers are capable of anything, I wouldn't bet the bank on that. Next time they may declare an emergency and take that too.

So I would also suggest putting some money in the market (like stocks and precious metal mutual funds)! There are those who claim that for whatever reason that silver may be a better investment than gold. So it is good to educate yourself on how to invest in gold and silver". You can research this for yourself.

Last but not least, I do not claim to be a financial advisor. Therefore, do your own research and make an informed decision.

Until Next Time,

Free Your Mind... Online



Matt Mason

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