[color="#008080"][size="4"]Part XI[/size][/color][size="4"][color="#008080"][size="2"] (of XVIII)[/size] :[/color][/size][color="#008080"][size="4"] JP Morgan and the Crash of 1907[/size][/color]
Now it was time for The Money Changers to get back to the business of a setting up a new private central bank for America.
One final panic would be necessary to focus the nationââ¬â¢s attention on the supposed need for a central bank, the rational being that only a central bank can prevent bank failures.
J.P. Morgan was the most powerful banker in America and a suspected agent for the Rothschilds.
Morgan had helped finance John D. Rockefeller Standard Oil empire.
He also had helped finance the monopolies of Edward Harriman in railroads, of Andrew Carnegie in steel and of others in numerous industries.
On top of that J.P. Morgan father, Junius Morgan had been America's financial agent to the British.
After his fathers death J.P. Morgan took on a British partner, Edward Grenfell, a long time director of The Bank of England.
In 1902, president Theodore Roosevelt allegedly went after Morgan and his friends by using the Chairman Antitrust Act to try to break up their industrial monopoly.
But in actuality, Roosevelt did very little to interfere with the growing monopolisation of American industry by the bankers and their surrogates.
For example, Roosevelt supposedly broke up the Standard Oil monopoly. But it wasn't really broken at all. It was merely divided into 7 corporations all still controlled by the Rockefellers.
The public was aware of this thanks to political cartoonists like Thomas Nast who referred to the bankers as The Money Trust.
By 1907, the year after Teddy Roosevelt's re-election, Morgan decided it was time to try for a central bank.
Using their combined financial muscle, [color="#ff0000"]Morgan and his friends were secretly able to [/color][color="#ff0000"]crash the stock market[/color].
Thousands of small banks were vastly overextended. Some had reserves of less than 1%, thanks to the fractional reserve principle. Within days bank runs were commonplace across the nation.
Now Morgan stepped into the public arena and [color="#ff0000"]offered to prop up the faltering American economy by supporting failing banks with money he manufactured out of nothing[/color].
It was an outrageous proposal, far worse than even fractional reserve banking, but congress let him do it.
Morgan manufactured $200 million worth of this completely reserveless private money and bought things with it, paid for services with it and sent some of it to his branch banks to lent out at interest.
His plan worked.
Soon the public regained confidence in money in general.
But as a result banking power was further consolidated into the hands of a few large banks.
[color="#ff00ff"]{ Note: {Timeline: Present} In the current manufactured financial crisis beginning with Lehman Bros, the consolidation of banking power was effected with the 'Too Big to Fail' logic ploy. Oligopoly is now just a step away }[/color]
By 1908 the panic was over and Morgan was hailed as a hero by the president of Preston university, a man by the name of Woodrow Wilson:
[indent] "All this trouble could be averted if we appointed a committee of six or seven public-spirited men like J.P. Morgan to handle the affairs of our country."
[/indent] [color="#000000"]Economic textbooks would later explain that the creation of the Federal Reserve System was the direct result of the panic of 1907:[/color]
[indent] "With its alarming epidemic of bank failure, the country was fed up once and for all with the anarchy of unstable private banking."[/indent]
But Minnesota congressman Charles A. Lindbergh senior, the father of the famous aviator Lucky Lindy, later explained that the panic of 1907 was really just a scam:
[indent] "Those not favourable to the money trust could be squeezed out of business and the people frightened into demanding changes in the banking and currency laws, which the Money Trust would frame."[/indent]
So, since the passage of The National Bank Act of 1863 The Money Changers had been able to create a series of booms and busts.
The purpose was not only to fleece the American people of their property but later claim that the banking system was basically so unstable that it had to be consolidated into a central bank once again.
Stay tuned...
Now it was time for The Money Changers to get back to the business of a setting up a new private central bank for America.
One final panic would be necessary to focus the nationââ¬â¢s attention on the supposed need for a central bank, the rational being that only a central bank can prevent bank failures.
J.P. Morgan was the most powerful banker in America and a suspected agent for the Rothschilds.
Morgan had helped finance John D. Rockefeller Standard Oil empire.
He also had helped finance the monopolies of Edward Harriman in railroads, of Andrew Carnegie in steel and of others in numerous industries.
On top of that J.P. Morgan father, Junius Morgan had been America's financial agent to the British.
After his fathers death J.P. Morgan took on a British partner, Edward Grenfell, a long time director of The Bank of England.
In 1902, president Theodore Roosevelt allegedly went after Morgan and his friends by using the Chairman Antitrust Act to try to break up their industrial monopoly.
But in actuality, Roosevelt did very little to interfere with the growing monopolisation of American industry by the bankers and their surrogates.
For example, Roosevelt supposedly broke up the Standard Oil monopoly. But it wasn't really broken at all. It was merely divided into 7 corporations all still controlled by the Rockefellers.
The public was aware of this thanks to political cartoonists like Thomas Nast who referred to the bankers as The Money Trust.
By 1907, the year after Teddy Roosevelt's re-election, Morgan decided it was time to try for a central bank.
Using their combined financial muscle, [color="#ff0000"]Morgan and his friends were secretly able to [/color][color="#ff0000"]crash the stock market[/color].
Thousands of small banks were vastly overextended. Some had reserves of less than 1%, thanks to the fractional reserve principle. Within days bank runs were commonplace across the nation.
Now Morgan stepped into the public arena and [color="#ff0000"]offered to prop up the faltering American economy by supporting failing banks with money he manufactured out of nothing[/color].
It was an outrageous proposal, far worse than even fractional reserve banking, but congress let him do it.
Morgan manufactured $200 million worth of this completely reserveless private money and bought things with it, paid for services with it and sent some of it to his branch banks to lent out at interest.
His plan worked.
Soon the public regained confidence in money in general.
But as a result banking power was further consolidated into the hands of a few large banks.
[color="#ff00ff"]{ Note: {Timeline: Present} In the current manufactured financial crisis beginning with Lehman Bros, the consolidation of banking power was effected with the 'Too Big to Fail' logic ploy. Oligopoly is now just a step away }[/color]
By 1908 the panic was over and Morgan was hailed as a hero by the president of Preston university, a man by the name of Woodrow Wilson:
[indent] "All this trouble could be averted if we appointed a committee of six or seven public-spirited men like J.P. Morgan to handle the affairs of our country."
[/indent] [color="#000000"]Economic textbooks would later explain that the creation of the Federal Reserve System was the direct result of the panic of 1907:[/color]
[indent] "With its alarming epidemic of bank failure, the country was fed up once and for all with the anarchy of unstable private banking."[/indent]
But Minnesota congressman Charles A. Lindbergh senior, the father of the famous aviator Lucky Lindy, later explained that the panic of 1907 was really just a scam:
[indent] "Those not favourable to the money trust could be squeezed out of business and the people frightened into demanding changes in the banking and currency laws, which the Money Trust would frame."[/indent]
So, since the passage of The National Bank Act of 1863 The Money Changers had been able to create a series of booms and busts.
The purpose was not only to fleece the American people of their property but later claim that the banking system was basically so unstable that it had to be consolidated into a central bank once again.
Stay tuned...