“The bold effort the present bank had made to control the Government, the distress it had wantonly produced … arc but premonitions of the fate that awaits the American people should they be deluded into a perpetuation of this institution, or the establishment of another like it.” – Andrew Jackson, referring to the Second Bank of the United States

“Congress Demands Answers from Fed, Bear Stearns” reads one headline on Reuters, while another from the Wall Street Journal online states “SEC Role is Scrutinized In Light of Bear Woes”. It appears that our dutifully elected politicians will hold a hearing next week to examine the details of the J.P. Morgan Chase & Co’s bailout of Bear Stearns and the role that the Federal Reserve and U.S. Treasury Department played in helping.

Why would Congress want a hearing for answers they should already know? Are they that ignorant or is it because it is an election year and they want to make it appear that they are working for the public good? Maybe the protestors in Bear Stearns’ lobby demonstrating against government bailouts of big banks while homeowners are abandoned had something to do with it. No, our lawmakers are just ignorant.

For the uninitiated and our naïve congressmen officials, here is a quick history of the Federal Reserve System which may be an oxymoron in terms of context. A grand illusion because there is nothing federal about it, no actual reserves and definitely not a system, but a central bank that our forefathers never would have approved.

The Federal Reserve System was a plan hatched in secrecy in 1910 on Jekyll Island by seven men representing ties to the major banks. Henry Davison a senior partner of J.P. Morgan and Benjamin Strong the head of J.P. Morgan’s Banker’s Trust Company were members of this elite group of seven.

In 1913, the Federal Reserve Act was passed and Benjamin Strong became the first head of the Federal Reserve System. The banking cartel was born with the full protection of our own government as its partner. The scam has been running for almost a century and really had only one purpose, making banks more money and creating a hidden tax to American citizens through inflation for the government.

(A central bank) is “a curse to a republic; inasmuch as it is calculated to raise around the administration a moneyed aristocracy dangerous to the liberties of the country.” – Andrew Jackson

This leads us to the present day with the bailout of Bear Stearns. It’s a case of the banks’ version of the boys club. The Fed and U.S. Treasury brokered a deal for J.P. Morgan in haste without question. Usually, such huge deals or mergers would go through committees or FTC oversight, but none of that here –a quick weekend jaunt in the park. It was not surprising that no red flags were raised about J.P. Morgan’s chairman, James Dimon holding a board seat at the Federal Reserve Bank of New York when the deal was made. J.P. Morgan Chase walks away with a bargain and Bear Stearns’ executives keep their bonuses.

Bear Stearns is just another investment bank that could have gone under and we would all survive. Banks were going under a dime a dozen back in 1907 before the creation of the Federal Reserve System. The actions of the Fed in the bailout were nothing more than the banking system protecting their Wall Street friends. The same thing happened during the S&L bailout of the 80s.

Should the average American consumer feel sorry for the 14,000 Bear Stearns’ employees? Probably not when they realize that according to the January 2008 Annual report, $3.46B was paid out in employee compensation and benefits in 2007 and $4.34B in 2006. That’s an average of $244K/310K per employee respectively for the past couple of years. Do you feel sorry for them now?

“Using a central bank to create alternate periods of inflation and deflation, and thus whipsawing the public for vast profits, had been worked out by the international bankers to an exact science.” – Gary Allen

The end result is that the American taxpayers will once again have to take on the burden for the greed and excess of Wall Street. The hidden tax of inflation will rise as the Fed pumps more fiat currency into the economy bailing out and helping their Wall Street friends. The economic stimulus rebate given out this summer is but a pittance compared to the taxes that will have to be paid back.

“The new law (Federal Reserve Act) will create inflation whenever the trusts want inflation. From now on, depressions will be scientifically created.” – Charles A. Lindbergh

Before making a decision to cast your vote this election year, you should read this great book, “The Creature from Jekyll Island”, by G. Edward Griffin or read the excerpt here.

Our great nation is on a downward spiral, it is no time to be complacent. Do not trust the politicians, lawyers, bankers or the government to tell you the truth.

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