Historical Events Leading to the Financial Collapse of the United States in 2008
The historical events which led to the fraudulent creation by Congress of the Federal Reserve system subsequent to the Panic of 1907, are not well known. Indeed, the historical contexts of America's financial adventures are not taught in any schools as a particular subject, in a particular history class, and certainly not in any Economics course.
On these pages we will chronicle the history of this fraud, and how these events led to complete collapse of the system in 2008-2009, events from which the financial system as we once knew it, shall never recover.
Rare stock certificate of the B & E, issue #34
1833: Andrew Jackson was voted into office to defeat the most hated financial entity in America: Nicholas Biddle's Central Bank known as the Second Bank of the United States. Jackson vetoed the bill to re-charter the hated Second Bank of the United States, which was run by many of the same families who largely own and operate the private banks of the Federal Reserve today. Jackson was not an altruist, and Jackson dispersed the funds formerly held by the Second Bank of the United States to state banks. These were the "pet banks" since they owed their allegiance to Jackson's efforts to finally dismantle the Central Banking system.
1837: Jackson's "pet banks" were doomed by Biddle's efforts on behalf of financial elites subsequent to the demise of the 2nd Bank of the United States, and could not efficiently maintain specie requirements to fuel the economic system, and so collapsed in the Panic of 1837. The following few years are called "The Hard Times" where specie was scarce, hoarded, or withheld, with Elite financiers brutally punishing the population with austerity measures and poverty, for the loss of the Elite's golden goose central bank.
1838: The New York Free Banking Act loosened credit by allowing any bank to print money, so long as it were backed by specie (coin). The Free Banking Act helped to restore liquidity retained by Biddle and the Elites, but led to a new set of problems such as "wildcat" banks, which really could not back their paper with specie.
1840: Van Buren proposed an Independent Treasury which marked the lowest point in US history for the Elite families who had formerly ruled America's financial system, until Jackson stripped the Second Bank of the United States of its Charter. Heavily opposed by the wealthiest financial elements, Van Buren's Independent Treasury was not approved by Congress until 1840. Even so, the populist Independent Treasury was fiercely targeted by the wealthiest elites (who had formerly controlled the now-defunct 2nd Bank of the United States) until 1846 when Tyler prevented the creation of another Bank of the United States, again proposed by elite financiers. With populist support, the attempt to separate the Treasury from the private bankers was nearly a success, however the Independent Treasury now became a new master of boom or bust, by demanding specie for payment, and imperfectly controlling the amount of specie in circulation.
Populism: By the People, for the People... not the Oligarchs. In 1846 the former United States was still a true Republic.
1841 to 1862: This was a period of aggressive growth for the United States based upon real resources and real manufacturing. It was the beginning of the Industrial Revolution, which included the cotton gin, telegraph, railroads, land speculation, mining, and many other endeavors to provide the foundation needed for America to become the workshop of the world, and the most powerful nation in the world. Unfortunately the Civil War intervened and had to be paid for, and the Independent Treasury system as it existed then did not well serve centralized government powers subservient to military expenditures, which are all ultimately destructive.
1863 to 1872: To fund the Civil War and end rampant counterfeiting, the National Bank Act of 1863 AKA the Treasury Act of 1863 and 1864 mandated that only national banks chartered by the Treasury could print paper notes or source specie for circulation, all denominated as United States currency notes or coin. In other words, this ended Jackson's free banking system where any bank could print money and put their name on it.
1873: The Crime of 1873 demonetized silver, which until then had inspired a great boom in speculation in the West, and fueled massive growth in the United States, enjoyed by almost all of the people. The silver boom liquidity was leveraged by a new and growing philanthropist elite, like Mackay and Flood, who were not well tolerated by the Establishment. The Crime of 1873 assisted in returning control of liquidity to the Old Money families and financial guard who had largely controlled the United States financial system since 1793. The Crime of 1873 hampered the operations of the Independent Treasury in providing liquidity for a rapidly growing vibrant young country, and was a massive political issue of the day, all but forgotten today.
1874 to 1907: The Independent Treasury continued on in modified form by way of the National Banking Act until 1907, when natural disaster, rampant speculation, and monopolist intervention by JP Morgan (the individual) and the Money Trust forced its end, leading to the establishment of the Federal Reserve in 1913, by nefarious means.
1913: The Creature comes to life, dripping with toxic venom and oozing with slime and pus from every pore, sometimes referred to as the succession of the private Money Trust, to create the Warfare State as we know it today.
1920: Funds formerly held in Independent sub-treasury banks are finally legislated to be moved into the Federal Reserve's District banks, all of which are privately owned, and which marks the end of the Independent Treasury. This legislation ended any future hopes by the people to control that which is dearest to them, which has, since the beginning of civilization, been compensation for their labor in real money, which no longer exists.
Panic of 1907!