Posted on 04/27/2006 7:19:38 AM PDT by Marxbites
"There can be nothing more unreal in its pretensions than debt currency itself." Charles Holt Carroll (1860) [1]
Charles Holt Carroll defended sound money in a blazing series of essays appearing in the latter decades of the 19th century. They are collected in the book, Organization of Debt into Currency and Other Papers (newly online on Mises.org) whose introduction opens,
Little is known of Charles Holt Carroll (1799-1890) only a shadowy figure of a man emerges. One would like to know more about this merchant who wrote so vigorously on the currency question.
What we do know of the man is his steadfast devotion to hard money and his unwavering rejection of fractional reserve banking in all its forms. As Rothbard points out in his History of Economic Thought: "A staunch adherent of free trade and laissez-faire, Carroll...was the last Jacksonian, continuing to argue the ultra-hard money cause long past the tremendous setback it received during the Civil War..."
Carroll's essays serve as a decisive critique of paper money, credit expansion, and dishonest banking.
Fractional reserve banking is a term describing the capital structure of a bank that has loaned funds that were placed there on deposit. This is problematic because deposit and loan transactions are fundamentally different. A deposit is a contract for the storage of currency in the bank to be held in safekeeping and returned immediately on demand. The deposited funds must be available at all times should the depositor wish. In contrast, a loan is a transfer of ownership and availability for a definite term. The creditor in a loan transaction has the right to invest the funds, and pays the depositor a rate of interest. These two types of contracts are mutually exclusive from a legal point of view. [2]
When funds placed on deposit are handled as if they were loans to the bank, then the bank will attempt to earn a return on the deposits by loaning them out or otherwise investing them, while at the same time maintaining the promise of immediate availability to the depositor. In such a case, the new debtors are issued on-demand claims for the principal value of their loan, indistinguishable from the claims of the depositor whose money they have borrowed. The bank has created multiple immediate-demand claims for the same gold coins. These new notes (at least for a time) circulate at parity with their face value in gold, and therefore function as currency.
See the rest at:
http://www.mises.org/story/2114
LOL, our money is worthless. That's why nobody is saving it.
Unfortunately so.
At $20/oz in the pre-confiscation 30's to $640/oz now - that represents at least a 96% decline in the dollars value vis gold.
The Rothschild Intl banking cartel that pushed for our Fed'l Reserve for them to control via it's Morgan and other minions, I believe if only at a gut level, has accumulated the largest gold horde in the world.
Did you know the Fed's shareholders are comprised solely of Int'l elites and members of the worlds wealthiest families including foreigners? That the Fed refuses to be audited, is not controlled by the US Govt in any way shape or form, much less by taxpayers who feed it?
Listen to this explanation of the Fed's creation and the players involved!
http://mises.org:88/Rothbard-Fed
I have a copy of The Creature From Jekyll Island by Griffin in my home library. Fascinating read and the best investment in a book I ever made.
I've read many that have referenced that book.
But without reading it myself, I have come to the conclusion that indeed the Rothschild Intl banking cabal that controlled the Roosevelt/Morgan/Rockefeller concerns here, fought for decades to bring the Fed into existence.
It's is so very sad just how ignorant the average American is regarding our history and economics - that a recent survey indicated that the majority of Americans CAN NOT name the three branches of our Fedl Govt is evidence of the criminal propaganda generations have received from our self interested pro big govt educrats.
One of the many sites that concur is this one, and it is particularly alarming how few people have even heard of Jekyll Island:
Secrets of the Federal Reserve
by Eustace Mullins
From Web Archive Sources
Chapter 14 Congressional Exposé
"Mr. Volckers politics is something of an enigma." -- New York Times
Since 1933 when Eugene Meyer resigned from the Federal Reserve Board of Governors, no member of the international banking families has personally served on the Board of Governors. They have chosen to work from behind the scenes through carefully selected presidents of the Federal Reserve Bank of New York and other employees.
The present chairman of the Federal Reserve Board of Governors is Paul Volcker. His appointment was greeted by one well-known economist with the following prediction, "Volckers selection has been by far the worst. Carter has put Dracula in charge of the blood bank. To us, it means a crash and depression in the 80s is more certain than ever."
Col. E.C. Harwoods Research Report, August 6, 1979, gave much the same view. "Paul Volcker is from the same mold as the unsound money men who have misguided the monetary actions of this nation for the past five decades. The outcome probably will be equally disastrous for the dollar and the U.S. economy."
Despite these gloomy views, the report from The New York Times on the selection of Volcker was positively ecstatic. On July 26, 1979, The Times commented that Volcker learned "the business" from Robert Roosa, now partner of Brown Brothers Harriman, and that Volcker had been part of the Roosa Brain Trust at the Federal Reserve Bank of New York, and, later, at the Treasury in the Kennedy administration. "David Rockefeller, the chairman of Chase, and Mr. Roosa were strong influences in the Mr. Carter decision to name Mr. Volcker for the Reserve Board chairmanship." The New York Times did not point out that David Rockefeller and Robert Roosa had previously chosen Mr. Carter, a member of the Trilateral Commission, as the presidential candidate of the Democratic Party, or that Mr. Carter would hardly refuse to appoint their choice of Paul Volcker as the new Chairman of the Federal Reserve Board. Nor is it straining the point to be reminded that this manner of selection of the Chairman of the Board of Governors is directly in the line of royal prerogative going back to George Peabodys initial agreement with N.M. Rothschild, to the Jekyll Island meeting, and to the enactment of the Federal Reserve Act.
The Times noted that "Volckers choice was approved by European banks in Bonn, Frankfurt and Zurich." William Simon, former Secretary of Treasury, was quoted as saying "a marvelous choice." The Times further noted that the Dow market rose on Volckers nomination, registering the best gains in three weeks for a rise of 9.73 points, and that the dollar rose sharply on foreign exchange@ at home and abroad.
Who was Volcker, that his appointment could have such an effect on the stock market and the value of the dollar in foreign exchange? He represented the most powerful house of "the London Connection," Brown Brothers Harriman, and the London houses which directed the Rockefeller empire. On July 29, 1979, The Times had said of Volcker, "New Man Will Chart His Own Course".
Volckers background shows that this was nonsense. His course has always been charted for him by his masters in London. He attended Princeton, obtained an M.A. at Harvard, and went to the London School of Economics 1951-52, the bankers graduate school. He then came to the Federal Reserve Bank of New York as an economist from 1952-57, economist at Chase Manhattan Bank, 1957-61, with Treasury Department 1961-65, as deputy under secretary for monetary affairs, 1963-65, and under secretary for monetary affairs, 1969-74. He then became President of the Federal Reserve Bank of New York from 1975-79, when Carter, at the behest of Robert Roosa and David Rockefeller, appointed him Chairman of the Federal Reserve Board of Governors. He was succeeded as President of Federal Reserve Bank of New York by Anthony Solomon, a Harvard Ph.D. who was with the OPA 1941-42 and with the government financial mission to Iran 1942-46. He operated a canned food company in Mexico from 1951-61, was president of International Investment Corp. for Yugoslavia 1969-72 (a communist country), under secretary for monetary affairs at Treasury 1977-80. In short, Solomons background was much the same as Paul Volckers.
The New York Times stated on December 2, 1981, "For years the Federal Reserve was the second or third most secret institution in town. The Sunshine Act of 1976 penetrated the curtain a trifle. The board now holds a public meeting once a week on Wednesday at 10 a.m., but not to discuss Monetary policy, which is still regarded as top secret and not to be discussed in public." The Times mentioned that when Open Market Committee meetings are held, Solomon and Volcker sit together at the head of the table and relay the instructions which they have received from abroad.
Behind Volcker and Solomon stands Robert Roosa, Secretary of the Treasury in Carters shadow cabinet, and representing Brown Brothers Harriman, the Trilateral Commission, the Council on Foreign Relations, the Bilderbergers, and the Royal Economic Institute. He is a trustee of the Rockefeller Foundation *, and a director of Texaco and American Express companies. Dr. Martin Larson points out that "The international consortium of financiers known as the Bilderbergers, who meet annually in profound secrecy to determine the destiny of the western world, is a creature of the Rockefeller-Rothschild alliance, and that it held its third meeting on St. Simons Island, only a short distance from Jekyll Island." Larson also states that "The Rockefeller interests work in close alliance with the Rothschilds and other central banks." **
On June 18, 1983, President Ronald Reagan ended months of speculation by announcing that he was reappointing Paul Volcker as Chairman of the Federal Reserve Board of Governors for another four year term, although Volckers term was not up until August 6, 1983. Reagans reappointment of a Carter appointee puzzled some political observers, but apparently he had succumbed to considerable pressure, as indicated by a lead editorial in The Washington Post, June 10, 1983, "There is no one who matches Mr. Volcker in both political standing and grasp of the intricate networks that make up the worlds financial system." The anonymous writer gave no documentation for his elevation of Volcker to the standing of the worlds greatest financier, and as for his political standing, The New York Times commented on June 19, 1983, "Mr. Volckers politics is something of an enigma." His "non-political" stance conforms with the Washington tradition of "the political independence of the Fed" which has been maintained for many years. However, the problem of its dependence on "the London connection" has never been discussed in Washington.
In reality, Volcker is more of a politician than an economist. After attending the London School of Economics, and finding out who issues the orders of the international financial community, Volcker has ever since played the game. Not once has he failed to carry out the orders of the "London Connection".
Can it really be possible that "The London Connection" exists, and that men like Volcker and Solomon receive their instructions, in however devious or indirect a manner, from foreign bankers? Let us look at the evidence, circumstantial, to be sure, but circumstantial evidence of the quality which has often sent men to the penitentiary or to the electric chair. John Moody pointed out in 1911 that seven men of the Morgan group, allied with the Standard Oil-Kuhn, Loeb group, ruled the United States. Where do these groups stand in the financial picture today?
U.S. News published on April 11, 1983, a list of the largest bank holding companies in the United States by assets as of December 31, 1982. Number 1 is Citicorp, New York, with assets of $130 billion. This is Baker and
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