The Magic Money Machine & Death of Freedom

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DrKrbyLuv's picture
DrKrbyLuv
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The Magic Money Machine & Death of Freedom

Eustace Mullins passed away on Feb 02/2010 and America lost an absolutely brilliant researcher and scholar.  He was the greatest political historian of the 20th century.  His work on the Federal Reserve was copied in many subsequent, and sadly, better know works including The Creature from Jekyll Island, Secrets of the Temple: How the Federal Reserve Runs the Country and The Case Against the Fed.  His Secrets of the Federal Reserve remains the authoritative history of the Federal Reserve.

The Magic Money Machine interview was recorded in 1993 and the information is more important now than then.  It is a quick exposé of the World's hidden and dark history of the 19th and 20th centuries.  Paraphrased highlights:

  • "The secret of the Federal Reserve is that it is not Federal, it has no reserves and it is not a system at all...its actually a criminal syndicate."
  • "The central banks create all wars (WW1, WW2, etc.) for profit and control."
  • "Income tax came about in 1913, along with the Fed, to act as the collection arm of the Fed."
  • "There is no government of the United States...what you have are conspirators behind the government."
  • "It would take about 6 weeks to get our country back on its feet after eliminating the Federal Reserve."
  • "Any nation with a private central bank will eventually go bankrupt."
  • "Section 34 of the federal Reserve Act says that Congress retains the right to alter or repeal this act at any time...Congress could buy all of the Federal Reserve stock for $144 million...that would wipe out a $4 trillion dollar debt."

http://www.youtube.com/watch?v=qwzSVfUZefk&feature=related 

Hope you enjoy...

Larry   

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Re: The Magic Money Machine & Death of Freedom

Thanks for your post, Larry.  It seems to me any discussion of the American economy is incomplete unless one considers that Federal Reserve is operating as a criminal syndiate in connection with the Plunge Protection Team (the Working Group on Financial Markets) to manipulate  the markets for the purpose of extracting the wealth of America into a few hands and destroy the middle class.

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Re: The Magic Money Machine & Death of Freedom

Excellent find and post, Larry. Hard to believe this was recorded in '93. He says the 'national debt' at that time was $4 Trillion, and what is it today???

 

His words still have absolute truth, America will become slaves under the Federal Reserve.

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Re: The Magic Money Machine & Death of Freedom

hucklejohn wrote:

It seems to me any discussion of the American economy is incomplete unless one considers that Federal Reserve is operating as a criminal syndiate in connection with the Plunge Protection Team (the Working Group on Financial Markets) to manipulate the markets for the purpose of extracting the wealth of America into a few hands and destroy the middle class.

Well said!  People are mesmerized with charts and graphs that are just symptoms of the underlying disease - the private Fed.  Our economy, money and markets are totally controlled and operating as intended.  It is a predatory system designed to transfer wealth from the middle class, enslaving future generations to perpetual debt and to destroy nation states.

It is happening in every client state that the western banking cartel has it's fang's dug into.  The EU, Canada, US, etc.  None will be spared, all are heading in the exact same direction.  A dishonest system cannot be regulated, it must be rooted out.

John99 wrote:

Hard to believe this was recorded in '93. He says the 'national debt' at that time was $4 Trillion, and what is it today???

You raise an interesting point - what is the national debt today?  Officially it is over $14 trillion but I contend it is actually much higher.  No one knows for sure what many bad assets that we purchased are worth and we have guaranteed many bad loans.  So, who can say?

Mullins first book on the Fed "A Study of the Federal Reserve" was published in 1952.  In the video Mullins mentions the courageous Congressman Wright Patman - the last politician to attempt to expose the Fed.  In 1953, Patman wrote to Mullins "Your book is among the few books that I have on my desk, Mr. Mullins, that I often refer to.  It is a very fine book and has been very useful to me...When I return to Washington, if you are down that way, I would like to have the privilege of seeing you and visiting with you..."

Here are excerpts from what he said on September 29, 1941, as reported in the Congressional Record of the House of Representatives (pages 7582-7583):

“When our Federal Government, that has the exclusive power to create money, creates that money and then goes into the open market and borrows it and pays interest for the use of its own money, it occurs to me that that is going too far. I have never yet had anyone who could, through the use of logic and reason, justify the Federal Government borrowing the use of its own money... I am saying to you in all sincerity, and with all the earnestness that I possess, it is absolutely wrong for the Government to issue interest-bearing obligations. It is not only wrong: it is extravagant. It is not only extravagant, it is wasteful. It is absolutely unnecessary...

Now, I believe the system should be changed. The Constitution of the United States does not give the banks the power to create money. The Constitution says that Congress shall have the power to create money, but now, under our system, we will sell bonds to commercial banks and obtain credit from those banks.

I believe the time will come when people will demand that this be changed. I believe the time will come in this country when they will actually blame you and me and everyone else connected with this Congress for sitting idly by and permitting such an idiotic system to continue. I make that statement after years of study."

Are these words too complicated for the common man to understand?  Why is there no one else in government, including many countries besides the U.S., not screaming this from the rooftops? 

Some would argue that Congressman James A. Traficant lit them up in a firey speech in 1993 but I have never seen the speech substantiated officially - and I suspect it is a forgery.  Since Patman, when politicians talk about reforming the Fed they have been duplicitous in actually protecting the Fed.  I include Ron Paul who is a dupe with the role of keeping libertarians in line with his bull s*** about "auditing" and second guessing Fed policy.  If he wasn't playing the Austrian role, a viable third party would be here by now.

Larry

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Re: The Magic Money Machine & Death of Freedom

Larry

I have the same feelings about Ron Paul. 

As for why no one else in Congress is doing anything about the Fed that one is easy look at where there campaign contributions come from and how few Americans even have a clue about the Fed. People like you and me are labeled as conspiracy theorists and dismissed.

I am actually mystified why CM who states that "The Creature from Jekyll Island" started him on his current journey does not speak to the Fed issue here on this site.

V

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Re: The Magic Money Machine & Death of Freedom
DrKrbyLuv wrote:

Since Patman, when politicians talk about reforming the Fed they have been duplicitous in actually protecting the Fed.  I include Ron Paul who is a dupe with the role of keeping libertarians in line with his bull s*** about "auditing" and second guessing Fed policy.  If he wasn't playing the Austrian role, a viable third party would be here by now.

Larry,

So you think Ron Paul is somehow keeping a third party from happening?  What exactly do you think would be happening politically with out him duping all the clueless lemmings with organizations like "Campaign For Liberty"?  Would Byron Dale be packing them in at college campuses across the America with talks about saving our country by spening money on union construction projects?  Would Ellen Brown be governor after coming up qith the solution to all of California's fiscal problems?   Maybe Mike Montagne would be sitting down with Oprah, explaining how a "mathematically perfected economy" would work?  Seriously, what would this third party look like?

Ron Paul has done more to wake up people in this country than all of your heros combined.  If you think we would be better off without him, is it any wonder that many of his followers find near religious devotion to soverign money, hard to swallow?

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Re: The Magic Money Machine & Death of Freedom

I am about 1/3 the way through reading Creature from Jekyl Island. I find that I can't read more than about half a chapter at a time before I get so livid at the outright theft of wealth from ... well everyone... to feed the big banks. And to think that this was all the plan from the beginning in 1913.

I find it amazing that nothing is ever said in the MSM about how the FED is enabling the rape, pillage and plunder of the world to the benefit of the money center banks.

I just finished the part about how the Panama Canal was really given to Panama not for any altruistic reasons but just so that Panama would then have enough money to continue paying the interest on the debt... not the debt... just the interest to the big banks.

 

Ken

 

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Re: The Magic Money Machine & Death of Freedom

Ken C wrote:

I find that I can't read more than about half a chapter at a time before I get so livid at the outright theft of wealth from ... well everyone... to feed the big banks. And to think that this was all the plan from the beginning in 1913.

I find it amazing that nothing is ever said in the MSM about how the FED is enabling the rape, pillage and plunder of the world to the benefit of the money center banks.

The theft and loss of our sovereignty could not occur without controlling the media and all branches of government.  We are locked in two party tyranny with both parties subservient to the banking interests.  Even our history has been manipulated to hide the truth.

If you and I know what's going on rest assured literally millions of people are aware, and many are content to commit treason to catch some of the crumbs falling from the Fed's table.  I hope Wright Patman was right when he said to his fellow Congressmen:

"I believe the time will come when people will demand that this be changed. I believe the time will come in this country when they will actually blame you and me and everyone else connected with this Congress for sitting idly by and permitting such an idiotic system to continue."

That time would come a lot quicker if there was an honest third party.  The real insane part is that our situation could be fixed anytime we want but our politicians are working hard to distract us from the truth...we have the sovereign power to create our own money without debt.  When asked, "could this be turned around overnight," Mullins replied "it would take around 6 weeks."

That's the good part, the solution is easy but the simple truth is more than most can accept.  

Larry

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Re: The Magic Money Machine & Death of Freedom

V, Larry,

 Can you explain why you think that Ron Paul is not genuine? And has been duped?

Thanks,

John 

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Re: The Magic Money Machine & Death of Freedom

goes211 wrote:

So you think Ron Paul is somehow keeping a third party from happening?

Yes...and I do not say that lightly...but I don't want to get into details.  As to the others you mentioned, they are true heroes that are not afraid to stand up to the banking cartel.  One of them suffered in unimaginable ways when they could have walked away with a nice bribe because of a rarity in this country - integrity.

Louis Thomas McFadden (1876-1836) was chairman of the House Committee on Banking and Currency from 1920 to 1931. He said, on June 10, 1932:

“We have in this country one of the most corrupt institutions the world has ever known. I refer to the Federal Reserve Board and the Federal Reserve Banks, hereinafter called the Fed. The Fed has cheated the Government of these United States and the people of the United States out of enough money to pay the nation's debt. The depredations and iniquities of the Fed has cost enough money to pay the national debt several times over. ”

Larry

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Re: The Magic Money Machine & Death of Freedom

The creature from Jekyll Island is about the worst book you could read when it comes to the entire problem with out monetary system.  It's just a consiracy book not grounded in fact.

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Re: The Magic Money Machine & Death of Freedom

I am actually mystified why CM who states that "The Creature from Jekyll Island" started him on his current journey does not speak to the Fed issue here on this site.

Well at this point in time getting rid of the fed wouldn't be the best thing to do, and in all probability getting rid of the fed at this point in time would actually be worse (how much more bad could it get right???).

The problem is Fractional Banking.  Getting rid of the fed would do little and or nothing to fix the real problem.  If we did get rid of the Fed tomorrow the banks would still just keep on doing what they do right now, creating money as interest bearing loans where when the principle of the loan is repaid, it is extinguished from circulation.

 

Basically all the Fed does is control how much credit the federally chartered banks can create.  The Fed in and of itself has zero control over state chartered banks.

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Re: The Magic Money Machine & Death of Freedom

"I believe the time will come when people will demand that this be changed. I believe the time will come in this country when they will actually blame you and me and everyone else connected with this Congress for sitting idly by and permitting such an idiotic system to continue."

And I believe this is a true statement.  Now the question is, when the people demand change are they going to know what the problem is and how to fix it.  This is the point that Ron Paul misses.  Its not the central bank that is destroying us, it's Fractional Banking.  We could get rid of the central banks tomorrow and realistically nothing would change.  Banks would continue to do exactly as they have done for the last few hundered years.  Create 'money' as interest bearing loans.

This is probably why we hear so much propoganda that goverment can't be trusted to have anything to do with money, or the goverment just "spends" to much money.

The problem is that goverment creates no money, and it's not government spending of money that is the problem, its government borrowing.

 

I do not believe starting a third party will fix the problem in America.  The only thing that is going to fix what is wrong with the United States is to start having money created as final payment and spent into circulation to pay for things that benifit all of society and to revoke and destroy the banking systems ability to create the medium of exchange as interest bearing loans.

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Re: The Magic Money Machine & Death of Freedom

Thomas wrote:

Now the question is, when the people demand change are they going to know what the problem is and how to fix it. This is the point that Ron Paul misses. Its not the central bank that is destroying us, it's Fractional Banking. We could get rid of the central banks tomorrow and realistically nothing would change.

I think Wright Patman was very clear as to what the problem is and in general terms, he provided the "fix."  For example, he took the lead in publishing "A Primer On Money”, which was prepared by the Sub-committee on Domestic Finance, House of Representatives, Committee on Banking and Currency — 88th Congress, 2nd session, August 4th, 1964.  In it he describes the Federal Reserve System and how it operates - including fractional lending:

Some examples:

Q.: Who has the right to create money in the United States?

A.: Under the Constitution, it is the right and duty of Congress to create money. It is left entirely to Congress.

Q.: To whom has the Congress delegated this money-creating right?

A.: To the banking system, that is, to the Federal Reserve System and to the commercial banks of the country.

Q.: If the Government can issue bonds, why can't it issue money, and save the interest?

A.: A few clear-headed and firm individuals, such as Abraham Lincoln, have insisted that the Government should.

The late Thomas A. Edison stated the matter this way: 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 in bonds, and not $30 million in currency. Both are promises to pay: but one promise fattens the usurer, and the other helps the people.

However, it has long been one of the political facts of life that private banks must be allowed to create the lion's share of the money, even if not all of the money. Thus there is little opposition to the Government's printing bonds, and then permitting the banks to create the money with which to buy those bonds; but proposals that the Government itself create the money instead of the bonds have always set off tremendous political upheavals. For example, Abraham Lincoln set off a political furor when he insisted upon having the Government issue $346 million in money (the so-called “greenbacks”) instead of issuing interest-bearing bonds, and paying interest on the money.

Q.: If the Government issued more money instead of Government bonds, isn't there a danger that the Government would issue too much money, and cause inflation?

A.: No. It is no more or no less inflationary for the private banks to create $1 billion of new money than it is for the Government to create $1 billion of new money. Furthermore, as an agency of the Government, the Federal Reserve System decides in any case the total amount of money to be created.

There are 169 questions and answers that go a long way towards explaining the system and it's inherent problems.  He may have given too much credit to the people in contemplating that they would figure it out, but to his credit, he gave the last "official" debunking of the Federal Reserve System.

You are right that Ron Paul "misses" the key in suggesting that the Federal Reserve might be eliminated while the banks would continue creating our money.  Wright Patman understood the system and was very clear that government must take back the ability to create money.  In this respect, they are different as night and day.

Thomas Hedin wrote:

I do not believe starting a third party will fix the problem in America. The only thing that is going to fix what is wrong with the United States is to start having money created as final payment and spent into circulation to pay for things that benifit all of society and to revoke and destroy the banking systems ability to create the medium of exchange as interest bearing loans.

I totally agree with the solution you propose but take a different view of how that might come to be. First of all, if people actually do figure out that our private "rental currency" is nothing but a giant Ponzi scheme they will also figure out that we have been lied to and deceived by both the democrats and republicans for almost 100 years.  The solution should not be theirs to weave.

If people begin to wake up, a political movement will begin to emerge.  Popular understanding will the glue that holds them together and the basis for "party planks."  I think a new party will formed in the basis of these planks.  More specifically, this will not just be a monetary reform party, but rather:

"Monetary reform - Tax Reform - Seignorage Restoration"and a return to a republican government that governs by the rule of law rather than the whims of dictators or a bullying democracy.

  1. Monetary reform includes the government creating all new money
  2. Tax reform is the elimination of all income and employment taxes as they are unnecessary, we have them now as a feeding machine for the Fed
  3. Seignorage restoration enables government to create to all new money while allowing private banks to continue distributing most new money, in the form of loans; the new money could come to the banks with an "issuance fee" from the government that would serve as a new revenue stream

I have a hard time envisioning how or why two party tyranny should continue if people actually do wake up.

Larry

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Re: The Magic Money Machine & Death of Freedom

Thomas,

I know my post will appear to be irrelevant to the thread on first reading it, but, I envision that what is more important than the money system is the education system in the US. Therefore, no matter what report you would give to the writings of Edward G Griffin, it firstly needs to be read to be questioned or disproven critically by an aware audience.

We cannot create change without the unity of the nation in majority. Media and education have put pay to that.

Will the present financial system be toppled without loss of human life? 

Do we have enough time left under the present circumstances to undo the damage already done?

Please, read Against School by John Taylor Gatto

My Best,

Paul

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Re: The Magic Money Machine & Death of Freedom

Paul,

 Thanks for that great link Against School. I have 3 small kids, and have long decided to add the the grown-up material, (history, literature, philosophy, music, art, economics, theology - all the stuff schoolteachers know well enough to avoid) but now this article makes me want to figure out how my wife and I could educate the kids at home or within a small group of parents, in order to help them develop their critical judgment, personality and individuality, and sense of culture - basically - everything the current educations system does not.

John

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Re: The Magic Money Machine & Death of Freedom
johnbryson wrote:

Paul,

 Thanks for that great link Against School. I have 3 small kids, and have long decided to add the the grown-up material, (history, literature, philosophy, music, art, economics, theology - all the stuff schoolteachers know well enough to avoid) but now this article makes me want to figure out how my wife and I could educate the kids at home or within a small group of parents, in order to help them develop their critical judgment, personality and individuality, and sense of culture - basically - everything the current educations system does not.

John

Hi John,

I'm really pleased I've captured another person with children who have gained benefit from John Gatto's article! His books and life are an excellent read, and your children will be given the greatest of gifts if you keep them out of the present education system. There is already a thread in place, filled to the brim with helpful insights and support at cm.com called Anybody Home Schooling Their Kids? Plenty of people there that will help you answer questions if you don't see exactly what you're looking for.

Best,

Paul

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Re: The Magic Money Machine & Death of Freedom

double post ...

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Re: The Magic Money Machine & Death of Freedom

 

Bank  Runs are the most  effective way to modify bankers behaviour,   but then that's why they have the Federal Reserve to give them a free pass. Until  bankers experience 'business failure',    there will be no reform.   

If you look further back   when bank notes were still backed by specie,    bankers were  already practicing fractional reserve banking.  Extending loans without adequate reserves.     There are  still some  misinformed people who  were duped into believing that the cause of bank runs and panics is due to "a shortage of gold" instead of the reality:    banks issuing banknotes  without adequate reserves (wildcat banking) of its metallic base.  So as customers redeem  their  bank notes for the real thing,  their leveraged position is discovered and they fail.  Picture a stagecoach full of gold coins being rushed from bank to bank just ahead of the bank examiner so they can pass muster.    Governments response has been  to side with banks by declaring 'bank holidays' to save banks from its customers.     

Can true monetary reform  really come from the creators of the current system:     Bankers and Politicians?  Only if you've been drinking from the same punchbowl as them.   Was it   Kool-Aid?

 

 

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