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In the wake of the Panic of 1907, U.S. financial elites recognized the need for systemic reform.
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In total secrecy, major bankers and politicians gathered at Jekyll Island (Georgia) in 1908 – 1910.
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Attendees included Frank Vanderlip (National City Bank), Henry Davison (J.P. Morgan), Charles Norton (First National Bank of NY), Col. Edward M. House (Wilson advisor), and Paul Warburg (Kuhn, Loeb & Co.)
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Paul Warburg drafted what became the Aldrich Plan, the blueprint for a central banking system. That was an early version of the eventual Federal Reserve.
📜 The Federal Reserve Act of 1913
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Originating from the Aldrich Plan, the Federal Reserve Act was passed December 23, 1913, after intense congressional debate
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It created a decentralized central bank system with:
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12 regional Federal Reserve Banks (districts)
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A Board of Governors appointed by the President
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The Federal Open Market Committee to manage monetary policy .
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Despite regional structure, the New York Fed quickly assumed dominance and control of national monetary operations.
👥 Architects & Hidden Influencers
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Paul Warburg is widely recognized as the mastermind behind the Act, credited with central bank principles.
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Senator Nelson Aldrich and his allies spearheaded early design and defended it publicly .
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Private‐sector interests such as the Rockefellers, Morgans, and European banking families (e.g. Rothschilds, Warburgs, Schiffs) are accused of exerting major influence behind the scenes.
💼 The Advisory Council & Private Influence
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The Federal Advisory Council is comprised of industry-selected bankers who advise the Board of Governors.
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Historically, these individuals have prioritized private banking interests over public welfare
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U.S. Senator Robert Owen and Congressman Lindbergh Sr. warned early on that the Fed served Wall Street’s regional banks, not the general public
🏛 Congressional Oversight & Criticism
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In 1976, the House Committee on Banking, Currency and Housing exposed that district bank boards were dominated by banking and big‐business elites, rather than public or small business representatives.
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The so-called “Club System” meant a recurring pool of private sector elites consistently controlled district governance.
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Direct criticism from figures like Louis McFadden (Chair of House Banking Committee) highlighted that, in his words, the Fed was a private credit monopoly with elite loyalty
💰 Ownership: Who Owns the Fed?
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Federal Reserve Banks issue stock to member commercial banks, but this stock:
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Isn’t tradable and cannot be bought or sold openly
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Can only be passed by inheritance
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According to the book The Secrets of the Federal Reserve, ownership lies with dynastic elite families: Rothschilds, Warburgs, Rockefellers, Morgans, Schiffs. Many of those are non‑American.
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This structure ensures permanent, elite private control over the U.S. monetary system.
🧾 Purpose: Control & Enrichment
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The Federal Reserve’s stated purpose: stabilize money supply, “manage liquidity,” and prevent financial panics .
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In practice, critics argue it:
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Prints money (fiat currency) to benefit private banks
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Participates in economic cycles that inflate asset values, favoring elites and speculators.
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Manipulates rural and small banks via interest policies to extract wealth during crises (e.g., 1920–21 depression).
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Uses its secretive open-market operations to serve elite interests over public transparency
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✅ Conclusion: Why It Was Created & Who It Empowers
In essence:
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The Federal Reserve was designed by and for private financial elites, meeting in secret to shape national banking laws.
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It established a complex system that appears public but is steeped in private control, with district banks overseen by elite boards.
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Its policies, that are money creation, interest rate setting, and crisis response, enrich those same elites, often at the expense of average Americans.
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By controlling currency, liquidity, and financial regulations, the Federal Reserve remains a potent tool of elite oversight and economic manipulation.
This history of the Federal Reserve reveals a central bank founded under secrecy, structured for elite control, and wielding financial influence that continues to shape America’s economic landscape.
It’s actions have and continue to prioritize the interests for control and wealth preservation of those who created it over the USA public it supposedly serves.