Thievery: Private Central Banking

The system of banking we have both equally and ever reprobated. I contemplate it as a blot left in all our Constitutions, which, if not covered, will end in their destruction, which is already hit by the gamblers in corruption, and is sweeping away in its progress the fortunes and morals of our citizens. … I sincerely believe, with you, that banking establishments are more dangerous than standing armies…” —Thomas Jefferson

“Most of the difficulties our Government now encounters and most of the dangers which impend over our Union have sprung from an abandonment of the legitimate objects of Government by our national legislation, and the adoption of such principles as are embodied in this act. Many of our rich men have not been content with equal protection and equal benefits, but have besought us to make them richer by act of Congress. By attempting to gratify their desires we have in the results of our legislation arrayed section against section, interest against interest, and man against man, in a fearful commotion which threatens to shake the foundations of our Union. It is time to pause in our career to review our principles, and if possible revive that devoted patriotism and spirit of compromise which distinguished the sages of the Revolution and the fathers of our Union. If we can not at once, in justice to interests vested under improvident legislation, make our Government what it ought to be, we can at least take a stand against all new grants of monopolies and exclusive privileges, against any prostitution of our Government to the advancement of the few at the expense of the many…” —Andrew Jackson (statement regarding his 1832 veto of the charter for the Second Bank of the United States, an earlier incarnation of the Federal Reserve System)

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 the city, STATE AND NATION. Like the octopus of real life, it operates under cover of a self-created screen. 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. It squirms in the jaws of darkness and thus is the better able to clutch the reins of government, secure enactment of the legislation favorable to corrupt business, violate the law with impunity, smother the press and reach into the courts. To depart from mere generalizations, let say that at the head of this octopus are the Rockefeller-Standard Oil interests and a small group of powerful banking houses generally referred to as the international bankers. The 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 catspaws 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 well be amenable to the dictates of corrupt big business. They connive at centralization of government on the theory that a small group of hand-picked, privately controlled individuals in power can be more easily handled than a larger group among whom there will most likely be men sincerely interested in public welfare. These international bankers and Rockefeller-Standard Oil interests control the majority of the newspapers and magazines in this country. They use the columns of these papers to club into submission or drive out of office public officials who refuse to do the bidding of the powerful corrupt cliques which compose the invisible government.” —John Hylan

“The real truth of the matter is, as you and I know, that a financial element in the larger centers has owned the Government ever since the days of Andrew Jackson—and I am not wholly excepting the Administration of W.W. The country is going through a repetition of Jackson’s fight with the Bank of the United States—only on a far bigger and broader basis.” —Franklin D. Roosevelt

The stock of money, prices, and output was decidedly more unstable after the establishment of the [Federal] Reserve System than before. The most dramatic period of instability in output was of course the period between the two wars … the severity of each of the major contractions—1920-21, 1929-33, and 1937-38—is directly attributable to acts of commission and omission by the Reserve authorities and would not have occurred under earlier monetary and banking arrangements. … Any system which gives so much power and so much discretion to a few men 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. But it is a bad system even to those who set security higher than freedom. Mistakes, excusable or not, cannot be avoided in a system which disperses responsibility yet gives a few men great power, and which thereby makes important policy actions highly dependent on accidents of personality. This is the key technical argument against an ‘independent’ bank. To paraphrase Clemenceau, money is much too serious a matter to be left to the Central Bankers.” —Milton Friedman


Private central banking is the primary method that sociopaths use to financially yoke us. Although it is unconstitutional to allow a private entity to own and regulate our nation’s currency, that is essentially what the government moronically instituted, in 1913, with the Federal Reserve System.[1]+ This impostor is ultimately a cartel of private banks.[2]+

From behind merely a dissimulation of public control, the Federal Reserve System allows sociopathic banks to regulate the cost and flow of loans—and through corresponding investments, the flow of money.[3]+ These banks, thereby, govern what sectors of the economy will boom or bust, and when.[4]+ With such foreknowledge, they can also take huge, ill-gotten advantage of investors and markets.

Astonishingly, the Federal Reserve System surrenders to sociopathic banks the near-exclusive power to create and own the nation’s currency—which we are obliged to borrow.[5]+ Sociopathic banks, hence, collect interest on nearly every dollar in our economy! To pay the interest on the government portion of having to borrow this cartel’s money, the federal government debt was indirectly placed onto the backs of the “working class” through the previously unconstitutional personal income tax—passed off, along with the Federal Reserve System, in 1913.[6]+ Almost all of the personal income “tax” that we have ever paid, in other words, has fraudulently gone straight into the pockets of sociopathic banks—and still does.

The lifeblood of our economy is thus both maliciously controlled and senselessly sucked out by these massive, forever-growing leeches. These banks, in fact, operate the spigots of money creation in order to flood so much cash into their own vaults that it drains the wealth of the entire nation.[7]+ On average, the intrinsic worth of our nation’s currency is halved every twenty years.[8]+

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[1] Note: It is unconstitutional to allow a private cartel of banks to coin, much less create or own, our legal tender and to regulate its value. The Constitution specifically delegated such powers to Congress. As written in Article I Section 8 of the Constitution, “The Congress shall have Power…To coin Money, regulate the Value thereof, and of foreign Coin…” Only those powers not specifically given to the federal government in the Constitution are reserved for others. Described in the Tenth Amendment, “The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people.”
[2] Book: G. Edward Griffin, The Creature from Jekyll Island: A Second Look at the Federal Reserve (Newbury Park: American Media, 1998).
[3] Documentary: Paul Grignon, “Money as Debt,” Moonfire Studio, 2006,
[4] Book: Murray N. Rothbard, The Case Against the Fed (Auburn, Alabama: Ludwig Von Mises Institute, 2007) [free online version].
[5] Book: Ellen Hodgson Brown, Web of Debt: The Shocking Truth About Our Money System and How We Can Break Free (Chippenham: Third Millennium Press, 2008).
[6] Documentary: Aaron Russo, “America: Freedom to Fascism,” All Your Freedoms, 2006,
Documentary: Bill Still and Patrick Carmack, “The Money Masters: How International Bankers Gained Control of America,” 1996,
Note: See the “Gross Federal Debt” “In Millions of Dollars” on table 7.1, page 127, of Budget of the United States Government, Fiscal Year 2009.
[7] Book: Ron Paul, End the Fed (New York: Grand Central Publishing, 2009).
Documentary: Bill Still, “The Secret of Oz,” Still Productions, 2009.
Documentary: Paul Grignon, “Money as Debt II: Promises Unleashed,” Moonfire Studio, 2009,
[8] Note: See the “Addendum: Composite Deflator” in table 1.3, page 26, of Budget of the United States Government, Fiscal Year 2009.

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Updated on December 6th, 2013