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Friday, March 25, 2011

Glenn Beck Program, March 25, 2011

The Federal Reserve

History of the Fed

“After Alexander Hamilton spearheaded a movement advocating the creation of a central bank, the First Bank of the United States was established in 1791.”

·        But the First Bank wasn’t the Fed.  That bank’s charter ran for 20 years and, because of problems, was not renewed.

“The situation deteriorated to such an extent that in 1860, a bill to charter a Second Bank of the United States was introduced in Congress.”

·        The charter for that bank ran for about 20 years and it too wielded too much power and influence, so it’s charter was not renewed.

“In 1907 a severe financial panic jolted Wall Street and forced several banks into failure…Many Americans (thought) their banking structure was badly out of date and needed major reform.”

·        A bill to form the Fed was introduced in 1907.  It was signed into law in 1913.

  • However the final bill to form the Fed was drafted in 1910 on an island off the coast of Georgia, Jekyll Island.

  • Represented for this purpose were the Rothschilds, the Morgans, the Rockefellers and the Warburgs. 

    • These four families controlled one forth of the total wealth of the entire world.

  • They were competitors and came together to draft this legislation to form, together with the government, a cartel.  In effect, it is an OPEC for money.

·        Jekyll Island Meeting Objectives

1.      To stop the growing competition from new banks.
2.      Obtain a franchise to create money.
3.      Get control of all bank’s reserves.
4.      Shift losses to taxpayers.
5.      Convince Congress of the stated purpose of the Fed to be to protect taxpayers.

  • The Fed is privately owned.
  • The President of the U.S. appoints the head of the Fed.  However, he may only select from a list of names submitted by the Fed.
  • It is not public and not private.

·        G. Edward Griffin, Author, “The Creature from Jekyll Island”
·        Mark Calabria, Cato Institute

Glenn showed a timeline illustrating events including financial crashes from 1800 – Today.


  • Historically, the Fed, through easy money policies, has created “bubbles”. 
    • When one bursts, they start working on the next one. 
    • After the dot com bubble, it was the housing bubble. 
    • After the housing bubble, it is the stock market bubble.
  • The Fed governors are afraid that outsiders will discover they don’t know what they are doing.
  • The Fed claims it is not creating more money, but what they are doing is digitally adding sums to selected bank accounts.  The effect is the same.
  • I think we are headed for real tough times.
  • The Fed here talks to (coordinates with) other country’s central banks.
    • The Fed’s support for the British pound in 1929 was a major factor in the collapse of the stock market.
    • They are not looking out for the American people as much as they are for each other.
  • We can see inflation in the high single digits, not to the level of Zimbabwe or the Weimar Republic.
  • Because of inflation, or to fight inflation, interest rates will have to rise.
  • To deal with inflation, you should invest in yourself because labor will always have some value.
  • Otherwise, buy some commodity – gold, silver, land.


  • It’s a ponzi scheme that works as long as the money supply keeps expanding.
  • The only thing they can do is create money.
  • Glenn has talked to some congressmen who have asked to see the gold in Ft Knox (that backs up our currency) and they have not been allowed to see it.
  • Griffin doubts there is any gold in Ft Knox.
  • Reliable information on the Fed was scarce when he started the book.  However, more information has been forthcoming over time.
  • Griffin’s view is that they are taking this financial power and converting it to political power.
    • Their vision is to control nations, to control society, to control the world.
    • “A New World Order” is their term and they use it all the time.
    • They understand that if you control the leadership of the major social organizations, you can control the masses.
    • All leaders of these major organizations fall into line.
  • The book was first published in 1994.
  • The scariest item is the Mandrake Mechanism.  That is the process used to create money.
  • Technically, we can get rid of the Fed if Congress approves – but they won’t.
  • The government is not telling us the truth about the real inflation rate.  I think it is about 20% right now.


  • Per Art Laffer, to tame inflation the interest rates would have to be substantially higher than back in the 1970s and 1980s (was about 20% then).
  • Interest rates at 25% would stop the economy.
  • Utah just passed a law that allows gold as well as U.S. dollars to be used as currency.  He didn’t know how that would work out.
  • Someone asked about how you survive if you are just starting out and have nothing. 
    • Look at the pilgrims and the pioneers. 
    • They had nothing but God and each other.

1 comment:

  1. Friday Glenn also interviewed NRA Executive Vice President Wayne Lapierre about Operation Fast and Furious aka Operation Gunwalker wherein the BATFE was responsible for "walking" weapons across the border into Mexico which then appeared at crime scenes including the murder of a Border Patrol Agent

    In Liberty,