The Federal Reserve Conspiracy

On November 22, 1910, seven men secretly boarded a private railcar in New Jersey. Between them, they represented more than 25% of the entire world’s wealth. Under the cover of darkness, they stole away to Jekyll Island, Georgia where they proceeded to lay the groundwork for the mysterious entity known today as the Federal Reserve. What exactly is the Federal Reserve? And why is it, perhaps, the most incredible conspiracy of all time?

The Federal Reserve Conspiracy?

The Federal Reserve, or the Fed, is a bonafide, wide-open conspiracy. It was hatched in 1910 by bankers in order to increase profits at the public’s expense. In the following years, representatives of those same bankers sold it to the public as a way to protect people from the banks. It was unconstitutional at the time of its passing and it remains unconstitutional to this day.

Its actions have exaggerated the boom-bust cycle, leading to nearly twenty recessions and/or depressions (including the current one). It enabled the creation of America’s massive debt, stole money from the poor, and along the way, wiped out 96% of the public’s purchasing power. Wow!  How can such an institution still exist? The answer lies in the details. The Fed doesn’t hide its existence. But it is an incredibly complicated beast. Few know about it. Even fewer understand it.

It is well that the people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning – Henry Ford

How does the Federal Reserve Work?

The Fed is America’s central bank. It is a monopoly, having complete control over the setting of interest rates and the printing of money. The Fed and its member banks generate profits by printing money, loaning this money to others, and then collecting interest on it. This is possible because U.S. dollars are inherently worthless. They do not represent claims on gold or silver or anything else. They are just pieces of paper. The only reason they have any value is because the U.S. government requires citizens to use them.

Paper money eventually returns to its intrinsic value…zero – Voltaire

The Federal Reserve Conspiracy: Winners & Losers?

So, the Fed is able to create as much money as it wants and profits handsomely from this practice. But printing money does not create value for the public. Instead, it dilutes the worth of existing money, causing prices to rise (this is often called inflation). This is a “hidden tax.” And like all taxes, there are winners and losers. Some of the winners include:

  • Bankers: As I already mentioned, banks make enormous profits by creating money out of thin air and charging people, businesses, and governments to borrow it.
  • Politicians: By printing money, the Fed allows politicians to spend money without raising actual tax rates.
  • The Well-Connected: Government employees and well-connected individuals and businesses are the first ones to receive newly-printed money. They are able to spend it before it loses purchasing power.

The losers include everyone else, most tragically savers, poor people, and those on fixed incomes. These individuals suffer from the hidden tax of inflation and thus, lose purchasing power that they can’t afford.

Government spending is always a “tax” burden on the American people and is never equally or fairly distributed. The poor and low-middle income workers always suffer the most from the deceitful tax of inflation and borrowing – Congressman Ron Paul

Some might forgive all of this if the Fed managed to provide a financially stable, growing economy over the long haul. However, since its inception, America has suffered eighteen recessions or depressions.

Guerrilla Explorer’s Analysis

For nearly one hundred years, the Fed has wreaked havoc on the American economy. It has stolen wealth from ordinary Americans and redistributed it to bankers and those with connections. It has lent endless amounts of money to politicians, leading to the creation of a massive public debt. And yet, it has failed to stabilize the economy.

The Federal Reserve is a genuine, ongoing conspiracy. And remarkably, it exists in plain sight, protected by a shroud of secrecy and poor understanding amongst the general public. However, all of that is starting to change. For the first time in decades, the Fed is under real pressure, led by the efforts of Ron Paul and others. Will it survive the onslaught? Or will someone finally find a way to end the Fed?

Is Fort Knox Empty?

A few weeks ago, CNBC announced that Ron Paul, the esteemed congressman from Texas, hoped to audit the supply and purity of the thousands of tons of gold stored in Fort Knox.  Of course, Paul’s wish makes one minor assumption…that there’s actually still gold in Fort Knox.

The Origin of Fort Knox?

The strange tale of Fort Knox, also known as the United States Bullion Depository, begins in 1933.  On April 5 of that year, President Franklin Delano Roosevelt issued Executive Order 6102 which, in effect, forced American citizens to turn in “all gold coin, gold bullion, and gold certificates” to the Federal Reserve.  The federal government built Fort Knox in 1936 in order to store its newfound treasure.

Citizens received $20.67 for each troy ounce of gold they turned over to the government.  Subsequently, President Roosevelt offered other nations the opportunity to buy or sell gold at $35.00 per ounce, an inflationary measure designed to end the rising Great Depression.  It didn’t work.  However, with most other assets undergoing deflation, the higher gold price attracted massive amounts of sellers from around the world.  As such, by 1949 Fort Knox held nearly 70% of the entire world’s known gold supply.

The End of the Gold Standard?

During the 1950’s, the tide began to swing the other way.  The U.S. continued to transact gold at $35 per ounce.  However, due to the declining value of the U.S. dollar, other nations were now buyers rather than sellers.  The sell-off lasted until August 15, 1971 when President Richard Nixon “closed the gold window.”  By ending the last remaining links between the U.S. dollar and gold, he also ended the need for a bullion depository.  Thus, Fort Knox became little more than a glorified, high-security warehouse.

Guerrilla Explorer’s Analysis

So, that brings us to the main question.  What, if anything, is still in the facility?  According to official records, Fort Knox holds 4,578 metric tons of gold bullion, or roughly 2.5% of the entire world’s known gold supply.  At the present spot price, that works out to $225 billion dollars.

However, that amount comes with an asterisk.  You see, no visitors have actually been inside the facility since September 1974.  And an official audit has not been performed since January 1953.  Even worse, that audit was flawed in numerous ways.  It lasted only seven days and tested just a small fraction of the gold.  With so much wealth and secrecy rolled into one location, it’s not surprising that Fort Knox has given rise to a flood of conspiracy theories.  The most popular theory is that the vault is empty or perhaps, filled with fake gold bars.

Personally, I doubt that Paul’s efforts will prove successful, at least in the near-term.  But one can always hope.  If he does manage to crack the facility’s cloak of secrecy, we will finally know the answer to one of the greatest mysteries of American history.  Does Fort Knox truly hold 4,578 metric tons of gold?  More?  Less?  Or is it just an empty warehouse?  And if it’s empty, more questions arise.  Questions that could prove just as difficult to answer.  Questions such as…

Who took the gold?  And what did they do with it?

The Lost Treasure of the Atocha

A few days ago, Mel Fisher’s Treasure announced the discovery of a $500,000 emerald ring, two silver spoons, and other artifacts.  It is the latest haul from the 1622 shipwreck of the Spanish Galleon Nuestra Señora de Atocha.  And it could lead to one of the greatest lost treasures of all time.

The Lost Atocha?

The Atocha is one of a fleet of Spanish Galleons that sank off the Florida Keys during a hurricane in 1622.  It lay untouched for over three centuries.  Then, on July 20, 1985, Mel Fisher discovered the wreck and in the process, uncovered one of the largest treasures of all time.  All told, the “Atocha Motherlode” was estimated at $450 million (in 1985!).  And amazingly, that’s only half of it.

A whole other treasure still lies out there, waiting to be discovered.  You see, the Atocha broke apart during the hurricane, causing the stern castle to separate from the rest of the ship.  Centuries of currents and storms drove them even further apart.  According to Sean Fisher, the ship’s manifest indicates that the stern castle could contain at least “100,000 coins, 400 silver bars, and personal jewelry.”  And that doesn’t include any treasures that were deliberately left off the manifest by clergy and nobility who wanted to avoid taxes.

Guerrilla Explorer’s Analysis

Mel Fisher, who searched for the Atocha for sixteen years, was well-known for his motto, “Today’s the Day.”  If Sean Fisher and his fellow divers have anything to say about it, “Today” could soon turn out to be a lifetime instead.

HT: Thanks to the Guerrilla Dad for providing the idea behind this article!