The Secret Meeting That Changed the World / pt 1
In the year 1910, a small group of the world’s most powerful men traveled to New Jersey and boarded a train.
Secrecy was of utmost importance. Nobody knew about their plans. Even their families were given false stories so they would not know where these men were going.
After boarding the train, the men traveled hundreds of miles south to Georgia, and eventually made their way to Jekyll Island for a secret meeting.
The only people present on the island were these few men plus a handful of servants. Each man was sworn to secrecy.
The men did not want even the servants to know their identities, so while they were on the island, they were permitted to call each other by their first names only. The use of last names was strictly prohibited.
Why so much secrecy?
It’s because these men had arrived at Jekyll Island to discuss the creation of a central bank that would have the authority to create money and loan it out at interest to the American people. Previous attempts to create a central bank had been unsuccessful. But this time, fate was on their side.
The secretive Jekyll Island meeting ultimately led to the creation of the Federal Reserve. The Federal Reserve Act was passed three years later on December 23, 1913, when President Woodrow Wilson signed it into law.
The Federal Reserve Act not only established the Federal Reserve—an organization owned by a group of private banks—it also gave them the authority to create money and loan it to the United States government. Before the creation of the Fed, the U.S. government created its own money and did not have to pay interest on the money it created.
After the Fed was created, the U.S. no longer created its own money. Rather, they relied on the Fed to do it for them. Not only that, the U.S. was bound to pay interest on ALL the money the Fed created.
And Thus Began the Biggest Ponzi Scheme Recorded in History!
When the Fed loans money to the U.S. government, it expects to be repaid with interest.
To illustrate how this works, let us assume that there is no money in circulation and that this is the very first day the Fed will create money for the U.S.
Let us say that the government needs $1 million. They ask the Fed for $1 million, and the Fed prints it into existence. The Fed then explains that the $1 million must be repaid with interest.
Except there is a problem…
If the Fed creates $1 million and loans it to the U.S. government, how exactly can the money be repaid with interest? After all, there is only $1 million total in circulation. The best the government can do is return the money, dollar for dollar.
But the Fed demands interest. And so they create more dollars and loan those to the U.S. government as well to enable the repayment of the initial loan with interest.
Basically, the U.S. government is paying back old debt with new debt!
At first, this process works slowly. The total amount of money in circulation grows. And the debt grows at the same time. The debt always exceeds the amount of money in circulation because that is how the system works.
Obviously, it doesn’t take long before this process picks up momentum. More money is created faster and faster. The U.S. debt grows bigger and bigger. And at a certain point, the whole scheme can no longer be maintained.
We are now at that point.
Since 1913, America Has Been Built on a Ponzi scheme!
In case you don’t know, the term “Ponzi scheme” is named after Charles Ponzi, one of the greatest con artists and swindlers in American history.
Nearly every Ponzi scheme promises unusually large returns in a short amount of time. These profits are often “guaranteed.”
But no profits are ever generated in a Ponzi scheme.
Early investors are simply paid with the money from later investors. When there are no new investors, the scheme collapses and all the late investors lose everything.
The relationship between the Fed and the U.S. government mirrors that of a Ponzi scheme. Early debt is paid back with new debt—until the debt grows to an unmanageable size and the whole thing collapses.
But understanding the Federal Reserve Ponzi scheme is just the tip of the iceberg
The Nixon Shock…
In 1944, the U.S. dollar became the world’s reserve currency with the creation of the Bretton Woods System. The dollar would be backed by gold, and all other countries would maintain a specific exchange rate by tying their currencies to the dollar.
The Bretton Woods System lasted until Richard Nixon abruptly closed the gold window in August of 1971. No advance warning was given to other countries, which is why this became known as the “Nixon Shock.”
Nixon’s actions effectively ended the Bretton Woods System, which meant the dollar was now a pure fiat currency with nothing of value to back it. It also meant that other countries could no longer exchange their dollars for gold.
This could have destroyed the dollar if not for the efforts of Henry Kissinger, who negotiated a deal with the House of Saud to sell oil in only U.S. dollars.
Other oil-producing countries soon followed Saudi Arabia’s lead, and thus began the era of the “petrodollar.” The new petrodollar was not backed by gold, but it was backed by oil—a valuable resource that every country on planet Earth needs.
Naturally, demand for dollars was restored as other countries began to hoard dollars in order to buy oil. The new oil-backed dollar has lasted a long time—from 1973 all the way up to this year.
But something happened in September of 2012 that practically guarantees the dollar is finished.
Currency War Games
Most Americans don’t have a clue about what I’m about to tell you. But it’s 100% true, and it could have a huge impact on you in the very near future.
Back in the early 2000s, Saddam Hussein began to talk about bypassing the U.S. dollar and trading oil in euros. The U.S. knew this could be catastrophic for the dollar as it would signal the end of the petrodollar. Thus, the 2003 invasion of Iraq terminated any plans Hussein would have and delayed the dollar’s fate for another nine years.