The Fed and the Power Elite | Murray N. Rothbard

Lecture presented by Murray N. Rothbard at the Ludwig von Mises Institute’s “Money and Federal Reserve” seminar; Jekyll Island, Georgia, May 8-10, 1992.

Source: The Fed and the Power Elite | Murray N. Rothbard – YouTube

http://www.readrothbard.com/the-fed-and-the-power-elite-murray-n-rothbard

TRANSCRIPT
00:01
this is a Caesar as a potentially very
00:05
big topic I’m gonna try to condense it
00:07
fairly short amount of time the first
00:11
thing that spoke about is the power
00:12
elite and the those of us urges and
00:17
power alien alysus ramifications which
00:21
are fascinating always accused of being
00:23
conspiracy theorists and the thing about
00:26
the the analysis is those theory
00:28
involved in this thing and except except
00:30
common sense it’s not that somehow we’ve
00:32
got a theory and that’s something
00:34
imposed it on the fact these analyses
00:37
pop up for the fact that they’re out
00:39
stare out at you you begin to see
00:42
connection example the suppose you look
00:46
at the paper you open up New York Times
00:47
or whatever you see that Congress is
00:49
just passed a steel import quota
00:51
increases feeling poor corridors past a
00:53
new automobile import quota and
00:57
supposing you think to yourself I mean
01:00
do you think to yourself a well gee it
01:03
looks like a few intellectuals and
01:05
congressmen selling up suddenly guns
01:07
where there has been creepy import quota
01:09
already say to yourself I guess the oil
01:12
interest only of a steel in Jerusalem of
01:15
the or viola of interest have been
01:18
lobbying framework for increasing port
01:20
quarter which of the two D is saying if
01:22
you say to yourself if somebody says I
01:26
guess the occasional automobile in port
01:28
quarter they wanna be honest reading and
01:29
lobbying for it does somebody say no
01:31
you’re a conspiracy theorist clearly
01:34
clearly not every German nut but think
01:37
that import quotas been established or a
01:39
tariff is an increase because of some
01:40
abstract intellectual interest without
01:44
the drive for out of the of the
01:46
particular industry it’s fake now the
01:49
thing is that doesn’t a conclusively
01:50
proven anything first you have the
01:52
hypothesis hypothesis the steel import
01:55
quotas increased yesterday okay there
01:58
are processes it looks like the
01:59
stealing’s lobbied for it and then you
02:02
find out you’re looking in the situation
02:04
you find out nine times out of ten of 99
02:06
times out of 100 yes and D they did a
02:07
lot before and that’s it so that’s the
02:10
height that’s how you get the hypothesis
02:11
then you look for the evidence
02:13
it usually is fairly clear so this is
02:16
this is clear on and that kind of a
02:18
level of tariff or import quota or a
02:20
lobby for some airport you find out who
02:22
did it gets the contract things of that
02:25
sort
02:25
it’s fairly obvious and economic
02:27
interests are pushing for it where it
02:30
gets controversial so to speak is going
02:32
get a little bit more abstract a little
02:33
bit more systemic lobbying for example
02:36
for some kind of measure which is
02:38
supposed to be just with gentlemen for
02:40
effective central bank we’re talking
02:42
about tonight or or some kind of
02:45
regulatory commission or a war and that
02:49
sort of situation it becomes somehow
02:50
controversial to look at the possible
02:52
economic interests which have been
02:53
lobbying for it and if you stay with you
02:58
look if you start looking around for
02:59
their evidence and you usually find it
03:01
but usually you don’t look for evidence
03:02
the problem as historians mostly don’t
03:04
look for evidence and the more abstract
03:06
level and particularly with financial
03:11
groups involved the campus Chicago
03:17
economists a pretty good one ideally in
03:19
sipping industry like specific
03:21
Regulatory Commission say the ICC in the
03:23
railroad pretty clear an Interstate
03:26
Commerce Commission lobbied for for the
03:28
railroad interests there’s not put in by
03:31
intellectuals and abstract leftist or
03:33
somebody’s put in by the railroads
03:34
themselves but Carta lies the industry
03:37
problem of the Chicago School they don’t
03:39
go far enough to look for the financial
03:40
interests underneath underlying the
03:42
various industrial with various industry
03:44
or financial interest investment bankers
03:47
and commercial bankers which which cut
03:49
across narrow industrial line we get
03:56
more specific because there’s an
03:58
empirical question you get more specific
04:00
in the late nineteenth century various
04:04
groups of the businessmen tried to Carta
04:06
lies their industry monopolize apart lie
04:08
the industry first in the railroads in
04:12
the eighteen sixties and seventies and
04:13
then of the manufacturing ninety and
04:16
they tried the theory was and
04:22
firms cut production raise prices they
04:26
buy increased profits and this is the
04:29
this is the attempt this is the theory
04:31
either first part cartels getting
04:34
together and say look well raise the
04:35
prices or is a reason railroad rates or
04:37
whatever but in order to do that you
04:39
have to cut production you have to cut
04:41
railroad shipments with the railroad so
04:42
that’s very difficult to do they arrange
04:44
a quota kind of system you cut
04:46
production anyway if they try to do that
04:48
and never worked nor the father rule
04:50
didn’t work we cannot make theory shows
04:53
us it will never work okay two reasons
04:56
one because internal pressure because
04:57
different firms have a temptation to
05:00
cheat on the cartel to undercut the
05:03
either cartel buddies and pick up more
05:06
and more sales or new firms come in they
05:10
see this industry getting high profits
05:11
they cut in the sandwich a new plant
05:13
with more modern equipment and they’re
05:15
permanently and the others they smash
05:17
the cartel and you’re stuck forever with
05:19
a newer dangerous competitor so for
05:22
those reasons but first in the railroads
05:24
and then a manufacturing cartels and
05:26
mergers didn’t work the great merger
05:29
boom late mate tomb 1898 1902 200
05:33
industries or so private monopolies one
05:36
monopoly company each industry in order
05:38
to cut production rates prices all of
05:40
them almost a little more cooperatively
05:42
collapsed so with that when that
05:45
knowledge various courts would be
05:49
cartellis decided to turn the government
05:51
through the caramel is Asian for Levin
05:54
this is the essence of the so-called
05:55
progressive Progressive Era which lasted
05:59
approximately my but officially from
06:01
1900 1918 actually for from then on they
06:04
were still living in it basically and so
06:07
the theory was we get together we get
06:10
the government either state or urban or
06:12
state or federal to do the Carta lysing
06:15
for us of course the model of that was
06:18
Bismarck and the impression Germany in
06:20
late 19th century it forced all the
06:23
firms in the one in one cartel get them
06:25
fortunately going along with cutting
06:27
production and raising prices where the
06:30
government is sort of the big the big
06:32
brother so running everything
06:34
arbitrating prices and wages and having
06:37
high powers keep at competitive imports
06:40
that was the basic schema and the in the
06:45
in the night and around 1900 several
06:48
financial groups began to form around
06:50
mount banks around investment banks
06:52
commercial banks and particularly the
06:58
from the panic of 1873 on VP Morgan and
07:01
company were major investment banker
07:03
first and railroads and then
07:05
manufacturing later on Morgan’s start of
07:08
a very beginning with the theory are
07:10
Carta lysing organizing first of all
07:13
organizing railroad cartel they didn’t
07:15
work and then Morgan turns to the
07:17
federal government will force it for
07:19
them in the Interstate Commerce
07:19
Commission and then a manufacturing in
07:23
late 19th century 1890s
07:26
so about 1900 what you’ve got this is
07:29
two competing financial groups more like
07:33
you have the Morgans on one hand
07:34
JP Morgan company and all their vast
07:36
network corporations which they
07:38
controlled on the one hand versus
07:42
another combine consisting of three
07:45
groups the Rockefeller Empire starting
07:50
of course with Standard Oil and Burton
07:52
moving outward to end the banking and
07:54
finance etc allied with of the Harriman
08:01
who was a everyone element was a big
08:02
where respective bring in railroad
08:04
financier and speculator who took over a
08:06
lot of railroads under the nose of
08:07
Morgan so they were getting hated
08:09
Harriman and Herman’s expanding out into
08:14
finance also plus Kualoa a german jewish
08:19
investment banking house in new york
08:20
which also which really which really
08:23
anticipated morgan and going up in
08:24
manufacturing so they were something so
08:26
the three of them form an alliance
08:27
basically what you’ve got from that 1900
08:30
on the rockefeller
08:32
culo of Harriman alliance versus the
08:34
Morgans this is the big titanic struggle
08:37
which helps it helps explain American
08:40
politics from making Heather talk
08:42
through World War two more or less the
08:45
paradigm
08:46
much more by the way explanatory on the
08:48
Republicans versus Democrats that
08:50
whoever happens to run each year and
08:51
sort of stuck with you well it’s the
08:53
puppet show or public and one of the
08:55
things that comes into this picture I
08:57
think one of the keys the beginning of
08:59
this kind of analysis is if you see a
09:02
you see you notice what somebody’s doing
09:04
in government somebody some President or
09:06
cabinet minister Secretary of Treasury
09:08
or whatever our Federal Reserve Chairman
09:11
you notice what they’re doing the most
09:15
historians what they say as someone so
09:17
enter a government of the EO whatever in
09:18
1990 40 whatever he did such-and-such
09:20
for about four years rate years any
09:22
disappears in other words as if it’s as
09:25
if the government official dropped out
09:26
of heaven or somewhere and did things
09:29
and then left and then disappears from
09:31
the scene well that kind of analysis but
09:35
seeks me where to be competing view of
09:37
this I think this is the Orthodox view
09:38
you read about John Foster Dulles over
09:40
every the program a Grover Cleveland or
09:41
whatever they do things in government
09:43
and they leave they come into the
09:45
picture that you think I’m going leave
09:46
and that’s it and nobody ever connects
09:48
this up but what they did before after
09:50
what would he do because they have a
09:51
light before they enter government and
09:53
after they left government if you really
09:56
average the Orthodox a story they don’t
09:58
have a life they just company this pop
09:59
up from Maryland bus and they do things
10:03
in this appear once you once you look at
10:04
the all you have to do so look at the
10:06
situation what do these guys do before
10:07
they enter with President or Secretary
10:09
of Treasury or whatever and what they do
10:11
ask the word and what’s he mean you
10:13
bring that in the picture you get a
10:14
whole if it’s so-called conspiracy
10:15
analysis pops up almost leaps out at you
10:17
it becomes almost evidence this is one
10:21
example I can get hundreds of examples
10:22
in American history one of the examples
10:24
Grover Cleveland I actually happen to
10:25
like certainly a better president
10:27
anybody succeeded him think bad about
10:29
that rover clean owes a favor lays a
10:33
fair so have a very consistent except a
10:36
railroad part a railroad question he’s
10:39
in favor the Interstate Commerce
10:40
Commission passed and his administration
10:42
which of course set up the first
10:44
Regulatory Commission for railroads how
10:47
you look at it
10:49
abstract for abuse you might say well
10:52
how is it the bull the cleveland rate
10:54
everything simply somehow waffled on
10:55
railroad well it might be connected of
10:58
fact you look at what Cleveland did
10:59
before he became her president between
11:02
his two terms and after he left who was
11:04
he did he have a life before that this
11:06
is being a young my Stein and Grover
11:08
Cleveland the indeed was a repop
11:10
railroad attorney in Buffalo is
11:12
connected Lee Morgan dominated New York
11:14
Central Railroad as big buddy and
11:17
partner and partner Wolf’s partner
11:19
before and after he’s president as
11:21
Francis no none other than Francis Lee
11:23
Stetson who the the top personal
11:25
attorney for JPMorgan we once you look
11:27
at that and once you look at the fact
11:29
also the Morgan was a major driver for
11:31
the Interstate Commerce image major
11:33
person pushing it then everything
11:35
because it gets clarify right the light
11:37
up or the fact that John Foster Dulles
11:40
and brother Allen who ran American
11:42
foreign policy for about forty years it
11:45
seemed like it but less than that I
11:47
would say 20 years for the Dulles
11:50
brothers why did it goes well normal
11:51
American foreign policy is it connected
11:53
with the fact they were both top before
11:55
that with top lawyers to stand alone New
11:58
Jersey and Rockefeller oil Empire
12:00
their policies have some connection with
12:03
that fact they did so that opens up the
12:08
whole interconnection of the power a
12:12
leak okay if we look at that that that
12:16
picture and look at the fact that the
12:20
various presidents are so connected with
12:22
either the Morgans or the opposition of
12:25
Rockefellers during this whole period it
12:27
doesn’t say it clarifies the enormous a
12:29
man about American political history
12:31
particularly because and by the way it’s
12:33
even more that I can’t go into this what
12:36
happens is this a tragic event to me the
12:38
most tragic single event in American
12:39
history in 1896 when the Democratic
12:41
Party had been the party of lays a fair
12:44
now ideologically committed party leader
12:46
here as captured by the extreme status
12:49
on Iran William Jennings Bryan and the
12:51
whole thing then old Democratic Party as
12:53
a lazy a fair party disappears in those
12:55
days political parties were very
12:58
different from them it’s totally
13:00
different what’s been great for those of
13:01
us with political junkies with no
13:03
because the political parties were
13:05
strongly ideological and not totally
13:07
consistent but remarkably consistent
13:09
ideologically they were organized around
13:11
a certain key values and policy so the
13:15
members were very loyal then members
13:17
when they socialized that members the
13:19
general public got interested
13:20
everybody’s either democrat or
13:21
republican no independent voters those
13:23
are things independent it’ll committer
13:25
to that you grew up as a democrat or
13:26
republican
13:27
and you’re loyal to it and the reason
13:29
why they had an ideology it wasn’t just
13:30
you know scrambling for office so
13:32
looking good on television so therefore
13:35
any feud if your candidate waffle if
13:37
you’re a Democrat a Republican candidate
13:39
waffles on principle you know vote for
13:40
him you get very tea oted this you know
13:43
vote until your party loses so as a
13:46
result even candidates were more
13:48
militant more ideological during the
13:50
campaigns in the world rest of the time
13:51
until the opposite mood present
13:53
situation so this is the this is what
13:57
happens in 1496 after 1896 with a lady
14:00
fair lost its political voice everybody
14:04
forgets most the public camera and you
14:06
know I amnesia potion politically and so
14:10
people forget and then this left up a
14:11
macular the fact then on the party
14:14
system 1896 on the more lies like that
14:17
is now in other words non-ideological
14:18
centrist semi status and all that
14:21
because of that the things of parties
14:23
are no more important and it’s left a
14:25
vacuum on the political power vacuum for
14:28
technocrats bureaucrats and big business
14:30
types that take over the power elite to
14:33
move in they couldn’t do as well before
14:35
that so what you’ve got is say the oh
14:40
well that’s it the most all of you guys
14:42
wanted Kartal is a by 1900 not just
14:45
the Morgans most of the rockefeller
14:46
Harriman group none of them were doing
14:48
now committed to this concept the
14:51
problem is how do you put this across to
14:52
the average voter the average voter
14:54
effort on the american voter has a
14:55
tradition through the united states a
14:57
anti-monopoly to this program are cut
15:00
pro competition anti-monopoly many state
15:03
governments for example had in their
15:05
constitution an original state
15:10
government had a constitution outlawing
15:11
monopoly by a monopoly they’re not mean
15:13
out when big business or
15:15
you know having a falling demand curve
15:17
what they meant grants of monopolies
15:19
privilege by the government outlawing
15:21
any grants not the exclusive privilege
15:23
to seller produced by government so
15:26
America was raising an anti-monopoly
15:27
tradition at walls anti status – there’s
15:30
no how does it get away
15:31
how does it handle the head of the
15:32
Morgan type to get away with this how
15:33
they put across Kartal is a ssin of the
15:36
American system the way they put it
15:37
across what to form an alliance of the
15:39
opinion molding groups class and society
15:42
if any more about volume intellectuals
15:44
like academics writers journalists media
15:50
will now call the media they form an
15:53
alliance with them to put this of course
15:54
the it so happens about 1900 the
15:59
intellectuals in the media settler right
16:01
for this kind of alliance for one thing
16:04
with a lot more of them in other words
16:05
technocratic tremendous technocratic
16:06
explosion of late 19th century
16:08
engineering school phd’s came in it for
16:11
the first time and and engineering
16:15
school social workers became a
16:17
profession or you want a shrinks
16:19
position all these all these people
16:21
wanted expanded their face they won’t
16:24
want to restrict their doors to supply
16:26
their like their profession I think if I
16:28
want to keep the other guys that license
16:30
to have a licensing or rest of it so
16:32
they want a licensing we also wanted to
16:34
be able to staff a new a new
16:36
intervention of society move a new order
16:38
they want to have jobs in the new order
16:40
which for one thing under a free market
16:42
capitalism any intellectual don’t get
16:44
the jobs to which they think they should
16:45
become accustomed it’s not much it’s not
16:50
much how much at me how much you were
16:52
Rolo there for a story and any promise
16:53
in all that and one of the one of the
16:56
problems also you cannot mention general
16:57
economics profession is you get R I
16:59
forget to the mini-grid II is what jobs
17:01
can we offer work jobs in austria
17:03
austrian world offering cannot make so
17:05
we’re not not much teaching of course
17:07
they can’t offer much in any place out
17:10
you can’t offer for casting you know big
17:12
fortune jobs in government or
17:14
forecasting models on the rest of it if
17:16
we remove that long nonsense so this is
17:18
it restricts is the opportunity open for
17:20
job opportunity for autonomous no
17:23
question about that
17:24
so these people saw that they saw hey
17:27
this is great
17:27
we can offer them they can offer them
17:29
jobs in the economist particularly poor
17:32
thing offer them jobs apologizing to new
17:34
order and we collected those
17:36
dimensionless order and jobs in the
17:38
order planning it or a story and writing
17:40
kiosks of the presidents and things like
17:42
that
17:43
bocce golfer and white king and a new
17:45
interventionist order of which we not
17:46
exist in the free market also many of
17:48
these people have well-known got had
17:50
before we can get PhDs here the peaches
17:52
in Germany and what to Germany and get
17:54
PhDs first the first academics late 19th
17:58
century they will in view with a spirit
18:00
of a new of the new intervention as new
18:02
organic statism transcending the alleged
18:05
evil relation here on the one hand and
18:08
Pollock Aryan Marxism of the other these
18:09
people there was status in like Paula
18:11
Terry incipio anyway in like couple of
18:14
Marxism and make sure you have the
18:15
rubber elbow is a lot of rubbing types
18:17
this is this gives you a statism of a
18:20
higher level anarchical sadism big
18:21
business data than the rest of it so we
18:24
ran so now we have the alliance there
18:26
was now right for an alliance bikinis
18:27
due to new social groups or big business
18:29
groups one hand also the new
18:31
intellectuals Technic graph in the front
18:32
and the other you read some of the stuff
18:35
I reckon my for example the great book
18:36
was written by James Gilbert in 1908
18:39
1960s called designing industrial state
18:42
there I go beautifully intellectually
18:44
with knives and wonderful acidic bitter
18:46
a book of having people but he calls
18:48
collectivist intellectuals the whole
18:50
mindset and one typical thing is not
18:53
directly right of a feminine directly
18:55
cha Steinmetz you bring an inventor was
18:58
a socialist you would have book about
18:59
importance of world socialism I forget
19:01
the title around this period by 1905 or
19:04
something like that and the thing that
19:06
Steinmetz he was the he was the big
19:08
philosopher inventor and theoretician
19:10
for General Electric which were Morgan a
19:12
big Morgan company and basically what he
19:16
wanted was General Electric social turn
19:17
he wanted a world government run by
19:18
General Electric with him as the
19:20
philosopher king of the philosopher –
19:21
inventor essentially Steinmetz social
19:24
and okay so that’s the sort of he
19:27
symbolizes quote to some to symbol
19:29
purpose in the new order so to speak
19:32
oneness time hasn’t it was the New
19:33
Republic magazine it still unfortunately
19:36
live us which was founded in 1914
19:38
the big liberal left liberal
19:40
collectivist kind of I’d like to a
19:42
magazine and who’s found an interesting
19:45
thing is who founded it was founded by
19:46
by the Morgan partner willow straight in
19:49
his wife was a Morgan heiress of Whitney
19:51
heiress in other words to me is also
19:53
symbolizes big business – social
19:56
intellectual alliance and Morgan a
19:58
beautiful symbol of a morning – social
20:02
circle of the intellectual order survey
20:06
any right
20:07
the usual view to get the Federal
20:09
Reserve System Federal Reserve System
20:11
the part of the whole progressive
20:12
movement it’s not just isolating it has
20:14
to be considered in context just as big
20:17
business was reaching forward trying to
20:19
get a Federal Trade Commission Act which
20:20
they did the Carta lies industry in
20:22
general to do for the thing that sprays
20:24
at that point was we need something to
20:26
do an organization to do for general
20:29
industry their own business what the
20:31
Interstate Commerce Commission did or
20:32
not – but for railroads and what the
20:35
Labor Department does communions what
20:37
the Agriculture Department us to former
20:38
this up in other words to help them out
20:40
for unquote so that was an in Federal
20:44
Reserve System conceived off my bank by
20:47
big bankers to fertilize the banking
20:49
system America – thanks American banking
20:52
system had gotten a little too
20:53
competitive 1900 what happened during
20:57
the Civil War the banking system changed
20:59
from a more or less free market – well
21:03
it’s a big banking system let me keep 40
21:05
gone after Jackson to destroy the first
21:07
bank more or less free banking system a
21:10
total civil war in the Republican Party
21:12
which is a big status party at that time
21:13
use the Civil War to push through their
21:16
entire economic program within high
21:18
tariffs hue subsidies and railroad
21:21
things like that and part of which is
21:22
the destroying the destroying the
21:25
competitive banking system it’s that
21:26
meatless replacing it with the people of
21:28
a status banking a centralized banking
21:30
system called a national Banking Act a
21:31
national banking system but where which
21:34
which monopolized
21:36
issue banknotes in national banks
21:40
instead of state banks and to a semi
21:42
several iced over halfway house to a
21:44
central bank by late by night by 1890s
21:48
in the fourth Street and especially Wall
21:49
Street banks running
21:51
with a pyramid and credit on top of
21:54
several Wall Street banks but 1890s
21:58
we’ve been focusing the crow was
21:59
slipping away from those too much too
22:01
many upstart banks in st. Louis and
22:03
Chicago and things like that and also
22:06
they were writing about the fact that
22:09
was so far in the elasticity of the
22:11
money supply in other words in it any
22:13
lies this is a cold war for not enough
22:14
money being poured out and because they
22:18
couldn’t print they couldn’t create
22:19
enough money during especially during
22:21
recession and especially they have to
22:22
contract they’d be a expand during
22:24
booming and creating a boom period and
22:26
would be things you got to Harry they
22:28
have to contract if the banks might go
22:30
under they needed a central bank
22:31
imported from Europe and neither a
22:33
lender of last resort a bale of banks
22:35
out of the centralized reserves that can
22:37
all expand together and to expand even
22:40
during the recession so that was the
22:41
that was the base in other words the
22:42
cart allows the banking system banking
22:44
analog to attempt the government cartel
22:47
any other areas in this particular this
22:51
particular banking area but two big
22:53
clashing meet ours Morgan’s on the one
22:57
hand the Harriman Rockefeller Coulomb
22:59
line on the other or an agreement
23:00
there’s no problem they both agree we
23:03
need a simple back okay so the question
23:05
was the question was how do we had a
23:07
maneuver vez they were in agreement
23:09
and I get the dumb masses to go along
23:11
with it the basic approach the Orthodox
23:16
view is of the driver Federal Reserve
23:17
started after the panic of 1907 because
23:21
people got scared bankers got scared
23:24
decided I need a central bank started
23:28
long before that started about 1896 and
23:33
what the but the Morgans wanted the
23:36
Morgans essentially one of the comment
23:37
they were afraid of Brian but it Brian
23:39
they this in favor of self government
23:41
inflation and not Bank a bank credit in
23:43
place so they didn’t like blind at all
23:46
Morgan’s had to leave a democratic party
23:48
and they made an alliance of leave with
23:50
the Rockefellers and running the
23:51
Republican Party of the time and but the
23:54
Morgans wanted basically was a
23:55
continuing a gold standard in one of
23:57
those temperatures they wanted the
23:58
illusion of soundness but they wanted
24:00
expanding bank credit on top of
24:02
the central bank also no other one of
24:05
basically a Federal Reserve System and
24:08
and the idea was because the previous
24:12
system was not elastic and not quote
24:13
unquote so that was the first day got
24:17
the gold standard through by not 1890s
24:18
from McKinley victory and also in 1900
24:21
but he defined 1897 they decided they
24:23
needed they needed stimulate a phony
24:27
grassroots movement but when they
24:29
couldn’t honey gotta fire reverses you
24:30
can’t have Morgan visionary
24:31
pronouncement not like our work most of
24:33
the public some obscure even suspicious
24:35
of Wall Street and Morgan but they
24:37
weren’t they were edgy he had to they
24:39
had to stimulate a phony grassroots
24:41
movement and they searched for the
24:43
middle of West little West motivated a
24:45
Heartland
24:46
good old boys Middle West of a state
24:49
space at the phony Indianapolis monetary
24:53
convention of the first session in 1896
24:55
a great book on this when we left the
24:57
story and rub rub Jim Livingston called
24:59
it the origin the Federal Reserve System
25:01
goes into this at some wonderful lengths
25:03
about the how they exactly this thing
25:06
worked
25:06
so they pretend there’s only bit small
25:09
businessmen in Indianapolis in Indiana
25:11
across the country only it’s a Heartland
25:13
has nothing doing Wall Street banks it’s
25:14
only the heartland however if you look
25:16
at the who actually running it the
25:18
Morgan people’s with Morgan from
25:19
beginning to end
25:20
so they have an Indianapolis monetary
25:24
convention 1896 another 197 they have of
25:27
a state pioneer we call a phony
25:29
questionnaire technique very effective
25:31
from public relations point of view they
25:33
send out questionnaires the various
25:34
bankers and businessmen all over the
25:36
country with a sort of loaded questions
25:38
that’ll get the right answers and then
25:39
they get the answers back of the hey mm
25:41
business I want you know so go back
25:43
wherever or whatever so they call for in
25:47
1897 Nicole Forbes goes to enter into
25:50
kindling whenever and a central banking
25:53
system to provide the elastic money
25:57
supply so it starts with an associate
25:59
understand 1897 it starts with and then
26:04
the various two secretaries of the
26:06
Treasury the first for another McKinley
26:08
was a rockefeller McKinley is a
26:09
rockefeller purse
26:11
one can leave they allowed bankruptcy as
26:15
governor of Ohio by the Rockefeller
26:17
combine so he the home Rockefeller and
26:22
McKinley secretary of the Treasury Wyman
26:25
JJ’s was a Rockefeller Chicago banker
26:28
for something for Central Bank of
26:30
Chicago which basically Walker for bank
26:33
and so he kind of used he was promoting
26:36
the idea of a simple bank in pursuit of
26:39
that and after after Teddy Roosevelt got
26:42
in to a lone nut’ assassin one of the
26:44
many lone nuts in American history
26:46
hopping off the Kinley so tell you was I
26:50
was a Morgan person was shoelaces up
26:52
suddenly becomes president he puts in a
26:55
Morgan personally Leslie show off from
26:58
Iowa and he’s trying to act as a central
27:01
bank and Treasury acted the central bank
27:03
and it didn’t seem to work too well I’m
27:05
telling you I have to stop so at that
27:08
point when it’s going to stop working
27:10
but as obvious the Treasury couldn’t
27:12
function a separate might have got a
27:13
central bank central bank at that point
27:16
they got very serious by 1906 and put on
27:19
the big push for a Fed or a central bank
27:23
interestingly enough they started the
27:24
idea of a parody two to one parody
27:27
system New York Chamber of Commerce
27:31
started the model of the final drive for
27:35
Southern Bank Arthur Jacob Schiff
27:36
powerful head of convolving company
27:38
makes a speech before the New York
27:40
Chamber of Commerce urging a central
27:42
bank point more elastic money and all
27:44
that and they set up a committee to
27:46
study it committees headed by Frank
27:48
Vanderlip who’s mr. Rockefeller and
27:50
banking speaker the vice president of
27:52
the National City Bank of New York with
27:54
you were total Rockefeller control bank
27:56
and he sets up a committee I think the
28:01
Koehler Commission of five people to try
28:04
to study the study the banking public
28:06
always study I mean the solution is
28:08
always written as a mantle all eyes have
28:10
five experts get together and think
28:12
about something for a couple of weeks
28:13
you come up my god they come over the
28:14
central bank idea so the parody was just
28:17
is so likely watching this on the
28:18
conference in 1920s to to rockefeller
28:21
people to Morgan person to know
28:23
on one coulomb verse 2 to 1 so the
28:26
committee was originally a committee was
28:27
just invented a look for the
28:28
Rockefellers George Baker and Morgan’s
28:31
closest ally for boyhood in the
28:33
First National Bank of New York Jacob
28:35
Schiff and I’m engaged security Treasury
28:39
and VP Moore himself but they couldn’t
28:41
make it run up a Vanderlip plus four
28:44
other guys who indeed to be constituted
28:47
to Morgan people to Rockefeller people
28:49
in one too low a person and they come
28:51
out with a for the report it’s calling
28:56
for central bank once again they get and
28:59
the anytime of the American Bankers
29:01
Association have been an out now they
29:03
have to convince the American Bankers
29:04
Association not that easy but the small
29:06
bankers were suspicious so you start
29:08
with American Bankers Association set up
29:10
their own committee with staff and
29:11
Morgan and Rockefeller people and they
29:13
come up with their reporting and they
29:15
meet together with the other New York
29:18
State Chamber of Commerce group all the
29:20
same people old buddy buddy easily come
29:21
up ten independent expert by this time I
29:23
come out with a post central bank report
29:26
so that’s an income then comes the panic
29:31
of 1907 which is an expert more of a
29:34
push developing it really starts by
29:36
night by the end of 1906 the whole
29:37
thing’s really pretty well set the any
29:43
rate the other this particular outfit to
29:47
celebrate agent as weekend the site of
29:51
Lee of the famous secret conference in
29:52
December 1910 where the five guys got
29:55
together and white and write the pros of
29:57
that I just think about so they finally
30:00
get to that stage when these are see
30:03
that these get a shrine in a song and
30:06
story and they are these are first of
30:11
all was was was organized by winter of W
30:14
human mind melt some W Ulrich the
30:16
senator from Rhode Island majority
30:17
leader he studied charters the car
30:21
because there’s no plane he couldn’t fly
30:22
down it was a car charter Newark station
30:26
in New York and he everybody had a stake
30:29
named recorders and register the whole
30:31
thing
30:32
throw reporters or if they all sign
30:33
themselves some other professor Jones an
30:36
older said we’re just going down and
30:37
stick a line with a duck hunting
30:38
expedition this is a big dumb kind of
30:40
place
30:41
so apparently one reporter actually
30:44
found out about the purpose of this for
30:46
some reason somehow the older over genes
30:49
were able to silence them one way or the
30:51
other explored yet keep them quiet there
30:57
were guys who went down of this thing
30:58
presumably the headquarters were
31:00
provided by JP Morgan with public
31:01
founders of Jekyll Island Club
31:04
Ullrich who’s over again you look at the
31:07
who the guy is and real life and hit
31:09
what he is involved in politics he was
31:10
the majority leader Senate many years
31:13
Republican wholesale grocer from Rhode
31:15
Island and started a fairly you know
31:18
fairly modest well modestly wealthy and
31:20
leaves the Senate LaMacchia
31:21
multi-millionaire you know a salary of
31:23
fairly low
31:24
you’ve never been investigated how he
31:26
can grab this anyway think that old
31:28
Richie interesting thing about Ulrich’s
31:29
was his daughter Abby Mary john d
31:31
rockefeller jr. it’s always good to have
31:33
your daughter Mary Mary Rockefeller so
31:36
he is mr. Rockefeller from then on in
31:39
the Senate and so he’s organizing
31:43
anything had a national monetary
31:44
Commission routine to Congress have
31:47
study some scholarly studies showing why
31:49
you have had a federal versus that’s
31:51
upset the stage and it was a flawless it
31:54
brings within the following people was
31:55
two more against two Rockefellers one
31:57
King Louis four years after the original
31:58
paradigm
32:00
Aldrich Rockefeller person another
32:02
rocket all persons Frank Vanderlip I
32:04
already mentioned vice president
32:05
National City Bank and to to top Morgan
32:10
people Henry P Davison unit and partner
32:12
if he more in a company the top Morgan
32:14
partner so secretary of state of a
32:16
modern world empire see some of the more
32:18
some of the partners are interested in
32:20
mostly in either politics or merging
32:22
others are regular banker bankers
32:24
Davison with the tub for external
32:28
backers and the Charles Norton presently
32:32
for seneschal Magna York which the
32:34
Morgan figure Bank those are the two
32:37
Morgan people
32:39
and paul warburg kilo a partner just got
32:42
more Warburg was brought over Mike
32:45
Jacobs chef of 1997 as partner from
32:48
Germany property they were all related
32:50
and Warburton and shipper related really
32:53
obscure I mean incestuous waiter like
32:55
each everybody’s each other’s father or
32:57
something like that a cousin pretty very
32:59
complicated any rate although closely
33:01
related and whoever comes over
33:04
apparently getting a salary about five
33:05
hundred thousand a year which he knows
33:06
ladies like five million of six million
33:08
a year now cisely the purpose of
33:11
bringing us a central bank bringing us
33:12
the joys or the German Reichsbank I
33:15
don’t think he did anything else I think
33:17
it was this function so he was there he
33:20
had he’d been given the famous speech
33:21
1907 in favor of a central bank so he
33:25
was a these are the five guys and also
33:26
as an economist they have the five guys
33:29
plus a kept technocrat a Harvard
33:31
economist actually white thing other
33:33
specific clauses and they’ve advanced he
33:36
really was a now I was saying a pion
33:38
Andrew Harvard economist was big big fan
33:41
of a Federal Reserve System these six
33:43
these six people sat there for a week
33:45
and raft of the whole legislation and
33:48
there’s a lots of every vice kind of
33:51
take credit other systems everybody
33:52
writes his memoirs the claim I really
33:54
wrote a venial wrote it and I think it’s
33:55
been conclusively proven by Milton
33:57
Friedman and others but this is the same
33:59
stuff that’s really virtually the same
34:00
what was past four years later virtually
34:02
what they wrote right here in Jekyll
34:04
Island no almost no changes the reason
34:07
had a way they had a wait three years is
34:09
Democrats won the election in 1910 and
34:12
Congress and of course
34:17
Wilson won a 1912 sigh had a beat tool
34:20
in have older its older which is read
34:22
name on the bill because he’s a
34:23
Republican a big Republican had to have
34:25
a democratic the Democrats and
34:27
others too they have glass some of the
34:30
glass head resync it retool it also they
34:33
had a propagandized massive about why
34:35
this is really a grassroots movement and
34:37
J Louis lock on the heart of economist
34:40
was a big fan of Federal service that’s
34:43
appointed or higher to run to stop a
34:45
grassroots movement in Chicago once
34:47
again this is the Midwest April
34:48
heartland pipes
34:50
three of anymore student and allegedly
34:52
being an assistant H Parker will it’s
34:54
actually they’re pretty good guys I mean
34:56
right now relative to whites going on
34:58
now they were great but pressure or
34:59
lousy compared what we going on then
35:01
both federal reserve people and so they
35:04
set up this thing full of citizens
35:06
committee purse for banking reform
35:08
something like that in Chicago writing
35:10
pamphlets and tracks and propaganda why
35:12
we should have a Federal Reserve System
35:13
and allegedly allegedly with no
35:15
connection with Wall Street actually
35:17
Willis his memoirs later on so this
35:19
whole thing with frontal to me or
35:20
bankers admitted he turn against the
35:23
Morgans anyway about our policies fairly
35:25
bitter about something probably been
35:27
used so in any rate so they set up a
35:29
phony grassroots thing they convert a
35:31
businessman they the rid of the small
35:32
bankers of American Bankers Association
35:34
then they’re ready for the big push it
35:36
in Congress by late 1913 it’s almost
35:39
unanimously they get everybody of this
35:41
thing it’s run for was it okay so
35:44
Morgan’s the Rockefellers and the Kualoa
35:47
forces when then this question what do
35:49
you okay now as many of the cartellis
35:51
said it’s not enough to pass a
35:52
legislation you have to have sound
35:54
people on the board who’s running it and
35:56
then you have jockeying for power gonna
35:57
run this thing and of course it
35:59
generally accept that the Morgans were
36:00
going to run it and a B they did the
36:02
Federal Reserve Board and Washington
36:05
largely Morgan had other influences
36:07
there to the right seven people whatever
36:09
there is a coalition the Rockefeller guy
36:12
was frederic della know something number
36:15
proof minutes later you have to realize
36:19
about the Roosevelt family very
36:21
important about 420 essentially American
36:22
history the theodore roosevelt branch of
36:25
the Roosevelt family it’s the oyster of
36:26
a Manhattan Breyers has always been
36:28
Morgan connect that makes you mean it’s
36:30
almost his first Teddy Roosevelt he went
36:33
to college in Harvard Amelia married
36:35
Alice Lee visit Boston Brahmin type the
36:37
Boston bombers well Morgan a boy
36:38
oriented so he wasn’t and he and his
36:41
mentor beloved political mentors Henry
36:43
Cabot Lodge is virtually more than a
36:44
tool we have we took some the Theodore
36:47
Roosevelt wing of the family’s always
36:48
been Morgan on the other hand of
36:49
Franklin Roosevelt Wayne the beloved
36:52
Franklin on phone ring behind Park
36:54
Roosevelt’s were allied to their
36:56
neighbors and Hudson Valley in the
36:58
Susan the hammerman’s the harem of the
36:59
Opera people Hammond’s over-under
37:02
playgroup an American coming century
37:04
history that kept a low profile for some
37:07
reason you know a royal governor and a
37:09
Bachelor of the Russian everything else
37:10
in the key figure extremely wealthy for
37:13
us in the the Herman fortune
37:15
remember the Hammond Rockefeller kuhmo
37:16
of connection so any rate the so we have
37:26
Frank so we have uncle Frederick
37:27
Franklin Roosevelt’s uncle Frederick
37:29
Delano
37:30
I’ve also remember the Federal Reserve
37:31
boy he’s connected with a rockefeller
37:33
railroad I think of Chicago wool bash &
37:36
Company Railroad something like that so
37:38
anyways it was largely Morgan but wasn’t
37:40
Salomon Morgan the Federal Reserve Board
37:41
but those days the power was in the
37:44
hands of the governor throws her back in
37:46
New York and that that was the Keegan
37:48
loser guys doesn’t die and they can
37:49
gauge in open market operations
37:50
everything else and that was and that
37:52
was granted to Morgan person Benjamin
37:55
strong look at the Friedman’s favorite
37:57
banker Benjamin stone was asked to have
38:01
a post of governor back in New York
38:03
he said he well he doesn’t really want
38:05
it because he thinks it won’t be
38:06
powerful enough he was persuaded to take
38:08
the job I to two closest friends in the
38:10
world
38:11
Henry P Davison Morgan partner and a
38:13
neighbor got him into the hole and he
38:15
was strong with vice president Macker
38:17
cuss company which is set up on the
38:18
Morgan’s to engaging the trust business
38:20
and his mentor as closest buddy in the
38:24
world as MEP David Morgan partner
38:26
there’s other two closest friends were
38:27
or Dwight Morrow Morgan partner and I
38:31
think Thomas Lamont more important
38:33
anyway they got they worked on they said
38:34
don’t worry you’ll have the power
38:36
don’t worry about it he did and so we
38:39
get sent in follows a policy two men are
38:41
of a totally Morgan policy until he died
38:43
1928 when were the policy of expanding
38:47
the Howard young tremendous power that
38:50
septa lies in the banking system
38:51
expanding and plating the money supply
38:53
first to finance the war effort came
38:57
along well first thing well first open
38:59
has exported the Allies when the the
39:02
world war once started notice 1914
39:05
Thomas W Lamont I’m assuming how happy
39:07
Davison Morgan partner hops the first
39:08
boat to
39:09
the one that he couldn’t take the at the
39:11
Concorde but have the first boat to
39:13
London he makes an agreement for the
39:15
English of Bank of England the English
39:16
government which were very closely
39:18
connected Morgan Grenfell accompanies
39:20
one of the populous banks and so over
39:22
many years and so they make an agreement
39:24
with the British and French governments
39:26
as follows for the duration of the war
39:28
the morgan bank gets the fiscal agent of
39:31
Bank of England okay
39:32
gets the monopoly underwriting of all
39:34
British and French bonds in the United
39:35
States and a monopoly purchasing of all
39:37
British and French ammunition and food
39:40
everything else now with all supplies me
39:42
on stage it’s purchased written by JP
39:44
Morgan and company so they they fed the
39:46
contracts their own Morgan mostly their
39:47
own Morgan industry one company like a
39:50
US Steel International Harvester and
39:52
General Electric up it Oh lion’s share
39:54
of all this stuff so any rates
39:57
assistance of the strongest person
39:59
increasing money spike we had to first
40:02
the plans for foreign loans upon export
40:04
and then to get us in lorna pronounced
40:06
the war effort after World War one we
40:10
have a situation a very peculiar
40:12
situation then we’ll go to a great
40:14
length than anyway we have a situation
40:16
where the Morgans are committed for the
40:19
Tony goes fan in which the British
40:21
engineer in 1920 506 where the British
40:27
had a peculiar situation British
40:29
situation was they the pound had been
40:30
depreciated town was always 486 that was
40:33
always had been the pound a reputable
40:35
god god-given pound would all 96 cents
40:37
the pound appreciated during the war but
40:39
it was in place when we inflated but the
40:41
the Western Allies can plate even more
40:43
my Germans also plated even more but if
40:45
they weren’t in the war longer one for
40:48
years and your reward following year and
40:49
a half so any rate the the pound is
40:52
appreciated down to three dollars and 20
40:54
cents by 1920 and the British want to go
40:57
back to an old standard didn’t want to
40:58
fire on money okay but they wanted thing
41:00
it’s just that I going back at 486 we
41:01
can’t go back to 320 that’s that’s been
41:03
that’s been make us a lesser power we
41:05
have to re-establish our great British
41:07
one of them is very financial center of
41:09
the world and to do that we have to go
41:11
back a 14-6 also the bond holders were
41:13
pushing for – of course
41:15
so they’re committed the two things one
41:17
they’re going back to gold but going
41:18
back at 46 and three a committed
41:21
not in order to make this viable they
41:23
learn how to deflate a lot from the
41:25
words at 46 amazing british goods were
41:28
unsalable of other few highly priced
41:30
they’ve had a deflate we’re gonna have a
41:33
tremendous
41:33
contractionary deflation but i was i
41:35
think is great I love these place the
41:36
point is they didn’t love it and now the
41:39
converted to an inflationary cheap money
41:40
policy they want to continue a policy
41:42
inflation cheap money and go back to 46
41:44
billion insane axioms they they started
41:48
with several usually kind of victory and
41:49
crazy axioms and within that they
41:51
maneuver every birth bring it later
41:53
within it a maneuver everybody else of
41:55
course that we covered your back and
41:56
that overvalued currency and all the
41:58
rest of them they also went back to a
42:00
pony go status if the ancestor of
42:01
Bretton Woods they went back Eddie and
42:04
didn’t go back and gold coins that it
42:06
only gold Williams standard you can only
42:09
get like bar is worth ten thousand
42:10
dollars it couldn’t get a coin the
42:13
average person can get at us your
42:15
British citizen could even get gold
42:16
Bunyan you have to be in foreign citizen
42:18
getting only million so it wasn’t really
42:21
redeemable the phone even a mobility
42:23
very much like Bretton Woods really
42:24
ancestor at Bretton Woods and they
42:26
forced all the other countries through
42:27
back at higher currency but the United
42:30
States how did Larry do with us they
42:31
couldn’t force us they didn’t have any
42:33
power over us that they have
42:34
League of Nations over Europe so we
42:37
induced because of the Morgan connection
42:38
they do strong to keep inflating social
42:42
help quote helping Ron prolific keep
42:44
written Tunisian gold us so we were on
42:47
regular gold standard bristles on phony
42:49
milquetoast and we kept them fighting
42:50
currency and credit everything else
42:52
product Heat Britain keep this thing up
42:54
quote any rate during a 1920 but we’ve
42:57
got getting back up our IV analysis you
42:59
have a totally Morgan country in the
43:01
administration building Morgan not just
43:04
strong after World War one this is
43:06
something which hasn’t really dealt with
43:08
my most historian World War one
43:10
discredit not just internationally the
43:12
spread of American domestic policy
43:13
because everybody was fed up with
43:15
inflation and shortages mice controls
43:17
more or less of it which Wilson had
43:18
imposed ministry actually against the
43:21
Democrats and the Republicans getting a
43:23
1920 that was any anyway Wilson was an
43:26
aberration to begin with because there’s
43:28
only came in but originally but the
43:30
Teddy Roosevelt
43:31
Morgan to split Republican Party fresh
43:33
tap the Rockefeller person so in any
43:36
rate we have a republican government in
43:39
the dominant Republic administration in
43:41
the 20s Harding was the Rockefeller
43:43
person largely alleles had a high Oh
43:44
cooks around him it’s on a lovable
43:47
crooks playing poker I kind of like that
43:49
it’s better to be but played poker than
43:52
lung you know to do a lot of damage but
43:54
anyway right so horny horny was sort of
43:59
a rockefeller person earning it has been
44:00
has mysterious illness and dies quickly
44:02
then there’s been no investigation with
44:04
death and Warren Harding no exhume I’m
44:07
gonna say we’re exhuming by the way
44:08
every president lies in office to be
44:10
zooming and peeping investigated with
44:11
subpoena power so a Secret Service guy
44:17
was in the secret service organization
44:19
in hoarding ministration wrote a book
44:21
claiming this is Harding poisoned them
44:23
but that was now he was considered and
44:25
dismisses a nut when he might have been
44:26
enough but nobody ever really
44:28
investigated the charge and that’s very
44:30
much like the McKinley situation
44:31
killings a rockefeller person he alone
44:33
not kill them they suddenly succeeded my
44:35
Morgan personally Teddy Roosevelt
44:37
morning as a Rockefeller person he
44:39
suddenly did by Calvin Coolidge with a
44:41
Morgan person a Calvin Coolidge’s and
44:43
mislabeled biased oriented being sober
44:45
quiet jerk pipe you might have been
44:48
quietly or not just a jerky remember the
44:49
Coolidge family which one of his cousins
44:52
with T Jefferson Coolidge of head of the
44:53
United Fruit Company they were in the
44:55
whole Boston Financial Group the Boston
44:57
Brahmin group which is essentially was
44:58
completely Morgan oriented so Coolidge
45:01
is a Morgan purse if you read this book
45:03
by chernow on the Morgans
45:04
to find out at JP Morgan Jr love colas
45:08
like he thought the chemical is the
45:09
greatest state to the 20th century yeah
45:11
well my mates yeah so he loved Coolidge
45:14
and to Coolidge’s policies were Federal
45:18
Reserve expansion lipping up the boom
45:20
etc and and the his cabinet was a morgan
45:24
cabot up more or less completely found a
45:27
list of that and i’m only get to herbert
45:29
hoover we have also a morgan more or
45:31
less morgan it wasn’t a solidly Morgan
45:33
as Coolidge was but the the Morgans one
45:35
a Coolidge to run to a third term that’s
45:37
really one that kept urging him they
45:38
didn’t try trust to where he’s gone
45:40
right but in you know anyway they
45:41
finally settled on Hoover and Hoover
45:44
his movers controls we say in the
45:46
Espionage business the person we’ve
45:48
checked with right Mauro Morgan partner
45:50
we checked with three times a week on
45:52
policy and advice things like that
45:55
anyway so you have a solidly Morgan have
45:57
Benjamin school you have Coolidge you
45:58
have you have Andrew Mellon the
46:00
Secretary of Treasury was allied with
46:02
Morgan’s we have a solidly Morgan
46:05
administration and what happens during
46:07
the 1929 an she was gonna get kind of
46:10
bitter first of all the Rockefellers it
46:11
bitter anyway and they’re getting bitter
46:15
at Morgan domination the Chicago bankers
46:18
are bitter and most largely Rockefeller
46:19
because of the New York Fed nomination
46:21
so the tremendous ship beginning to be
46:23
permanent tremendous ships of Financial
46:25
Group’s toward the Democrats in 1908
46:28
1920s the 1928 for example the DuPont’s
46:32
would always been Republican and
46:34
protectionist break with the Republicans
46:36
have set up with the Al Smith campaign
46:38
the DuPont executive John raskov added
46:41
with this national chairman of the Al
46:43
Smith campaign and they were they were
46:46
they were bitter for various reasons
46:48
they were bitter first of all because of
46:49
German chemical patents which the
46:52
Germans had the United States has stolen
46:54
from the Germans in World War one
46:55
I’d say stolen me part of a war booty
46:57
think heavy chemical passage you guys
46:59
they’ve grabbed them the question is who
47:01
should get them the more guys wanted
47:02
Morgan and the Rockefellers want to
47:04
return them the German so they could set
47:05
the Germans up turns be able export
47:08
again I things like that
47:09
DuPont one of the keep the chemical the
47:10
patent the DuPont got very bitter about
47:12
that they serve a stout also do plants
47:15
in a big argument du Pont’s with a major
47:16
shareholders General Motors a
47:18
collaboration of the Morgans and a big
47:19
falling out in the 20s the mauryans one
47:22
of the charge them higher – higher price
47:24
for finance and law sort of stuff is a
47:25
big break with the Morgans the DuPont
47:28
start trying to take over US Steel which
47:29
is a big Morgan Corporation and the FTC
47:32
stops the FTC walks the takeover bid
47:35
1926 and the FTC forces of the federal
47:40
government Morgan dominated company so
47:42
the DuPont’s are very bitter they shift
47:43
the Democrats also they hated
47:45
prohibition being passed like extra
47:47
extra incentive and by the 1930s the
47:51
Rockefellers shift also Rockefeller
47:53
personal Rockefeller bitter and Morgan
47:54
nomination to
47:57
The Rock Hall has take over the chase
47:59
National Bank which have been a major
48:00
Morgan bank seized control of the 1930
48:03
and Wipro Wooldridge the son of Milton
48:06
orders comes with chairman general Ward
48:07
and they big pit and the oil industry is
48:10
in fairly bad shape they find this new
48:12
tremendous new oil on Texas and Oklahoma
48:14
oil prices are down on the bottom and
48:17
they decided favor of inflation so what
48:19
you have now is a general a general
48:20
alliance and many business groups in
48:23
favor
48:23
not just cartel as them with the oil in
48:25
our favor uh but also radical inflation
48:28
getting off with old standard paper
48:29
money devaluing though all the rest of
48:31
it
48:32
the driver for studying after forgetting
48:36
all for those bands the committee headed
48:38
by the committee for the nation which
48:39
was set up for that purpose which was
48:42
which hat on it retail store people
48:44
retail owners who wanted retail retail
48:47
people like Remington Rand and finally
48:50
and people like that they they thought
48:52
the consumers get more purchasing power
48:53
they can buy their stuff so they were a
48:55
favorite of inflation being more money
48:57
to consumer that was where the farmers
48:59
of course always want more inflation
49:00
farmers want to increase farm price
49:02
supports and so farmers were agitating
49:05
for inflation and paper money and and
49:09
also the Rockefellers want a higher
49:11
price for oil actually for gasoline the
49:14
retail product so we have the committee
49:17
for the nation’s heavily financed by
49:18
Standard Oil of New Jersey plus the the
49:21
Royal Dutch Shell Group was agitating
49:23
for free silver all these groups got
49:25
together to get us off with old standard
49:28
when when Roosevelt run what Lola
49:31
Roosevelt’s famous break up in London
49:32
economic conference I’ve written on this
49:34
I didn’t know by the time I wrote on us
49:35
I didn’t know about the details forces
49:37
behind the scene when Roosevelt sent a
49:40
delegation the Warburg’s at the one that
49:42
he got my camera they were in favor
49:43
there was actually the Morgan group they
49:44
want to reestablish
49:45
some not exactly go Sam but some kind of
49:47
a fixed exchange rate with England
49:49
England go there I mean buddy baby
49:51
anyway so they want a fixed exchange
49:53
rate with England and the super
49:55
inflation is one of the cut that out
49:56
have a lot of inflation and so the of
50:01
the Rockefellers and they and they pre
50:03
silver people and induce rose about the
50:05
son of the famous telegram the molle
50:07
whatever things cutting up
50:09
cancel negotiations were ending the
50:11
London gun macabre that’s what happens
50:13
then the first New Deal
50:15
the early New Deal is essentially the
50:17
brilliant writings on this by Thomas
50:19
Ferguson of the new left local scientist
50:21
who’s writing a great book which hasn’t
50:22
been published yet finish it I’m waiting
50:25
for great anticipation coldly
50:27
tentative title is lutely full of the
50:30
house of Morgan on the coming of the New
50:31
Deal
50:31
the interprets I think I mean that was a
50:36
big Morgan thing that both together and
50:39
was put in by the Rockefellers and
50:41
others one of the smash them and cut the
50:43
cup of time as in commercial Investment
50:45
Banking that was the big fire steagle
50:46
act and also the public utilities
50:49
holding act 1935 to break up the Morgan
50:52
run public utilities companies the
50:53
Morgans the holding companies public
50:55
authorities was successfully
50:56
accomplished there’s a big smash of the
50:58
Morgans those essentially the crushing
50:59
them of a Morgan oil Empire but I have
51:03
succeeded while they and also several
51:06
izing power and the Washington’s fed the
51:08
New York Fed was still Morgan oriented
51:10
so they overcome this in the Banking Act
51:12
perfect bank 1935 and coming in as a
51:17
dynamic New Deal head of the Fed of
51:20
Marriner Eccles neuro necklaces that you
51:22
table banker an interesting thing about
51:25
echoes which hasn’t been pointed out and
51:26
not everybody praising echo something a
51:28
pre pain meters American accounting
51:29
review an arquebus
51:30
seven years ago saying that goes the
51:32
break I’m just pre change iam not even
51:33
leading pains before teens existed or
51:35
wherever he’s running a stuff of that
51:37
you need these deficit spending and more
51:39
consumption or less of it he wasn’t just
51:41
that he’s also in favor of everything
51:43
out Social Security and then
51:45
unemployment insurance schemes and going
51:47
back to World War one collectivism the
51:49
rest of it all out status any rate Ghazi
51:53
we come again we look at echoes we
51:55
wasn’t if the guy suddenly pops up a new
51:57
talk and he’s there for that from 1934
52:00
is head of the Fed until 1948 so he want
52:04
what he was was the richest person in
52:06
Newton he was head of a fleet of bank
52:08
holding companies and very very very
52:10
opposed to the Morgans when he follow
52:12
they were they were paganistic to him by
52:14
by being able to use in new york fed of
52:16
the power of stuttering one of the
52:18
smashing new york fed on the Morgans
52:19
he’s a lie or the Rockefellers in doing
52:21
well in purple
52:22
which is also pushing for taking over
52:24
smashing New York Fed so he was and also
52:29
addition to that echoes was connected
52:31
strongly Rockefeller interests usually
52:33
in a construction Utah construction
52:35
companies both of Boulder Dan and lots
52:37
of other stuff in collaboration with the
52:40
famine world California the Bechtel
52:42
corporation which in turn is heavily
52:45
connected has always been heavily
52:46
connected with Standard Oil of
52:46
California the Rockefeller oil Empire by
52:49
the waying we look at baek dohui note of
52:51
the fact of two to Reagan administration
52:54
cabinet members George Schultz and
52:56
Caspar Weinberger both Bechtel executive
52:59
the things are coming into it who is
53:01
Bechtel Beckles the world’s biggest
53:03
construction company also very strong we
53:05
can connect an attache of the
53:06
Rockefeller oil Empire when Rockefeller
53:08
got the big concession Saudi Arabia or
53:10
concessions Beckham so the basis answer
53:12
those stuff those pipelines and and and
53:15
the world bases its up like that so all
53:18
these businesses are interconnected
53:20
so what you’ve got senator Andy and the
53:23
first New Deal in particular we have a
53:24
more like smashing the Morgans are life
53:27
the power of the Rockefeller
53:29
details and first Buster blow of
53:31
empowerment Harriman is a big Democratic
53:33
tribute earth that the first to begin a
53:36
new deal and collaboration with course
53:39
intellectual collectivist one
53:41
interesting thing is that the banking
53:43
Banking Act of 1935 which centered power
53:46
on the Federal Reserve and the Reserve
53:48
Board in Washington was written but both
53:50
by echoes and by Lachlan curry English
53:53
quantitative this and my name’s also an
53:56
economist and also correlated trans be
53:58
still be at AG I’m not now Mac I’m not
54:01
saying that Soviet a must and a Kremlin
54:03
they told curry
54:04
push push Federal Reserve Guevara
54:06
something like that it’s going on it’s
54:09
only along the same path centralizing
54:11
power and then government in Washington
54:14
dominating crippling any kind of free
54:17
market systems so there’s a little fits
54:18
into the cold pattern so now after the
54:22
war what happens after the war is over
54:25
the in general and the titanic struggle
54:28
between the Morgans on one hand and the
54:31
Rockefeller come over on the other the
54:33
beginning we have a date time from the
54:34
date on
54:35
world war ii world war ii was a happy
54:37
hunting ground when people basically
54:39
what happened was a Morgan
54:40
once again wanted an intervention in
54:41
Europe and connected with Britain France
54:44
and Britain France French commands
54:45
Morgan’s goes out to crush Germany at
54:48
both of World War one and World War two
54:50
ideology doesn’t seem to make I can law
54:52
a difference here the me and the other
54:54
hand Rockefellers had no interest in
54:55
Europe as a matter fact they had they
54:58
had cartel arrangements with IG Farben
55:00
so they were isolationism or in Germany
55:02
area in the Europe they only had in one
55:03
of the question pants and was evil
55:05
little product takeover rubber and oil
55:08
Southeast Asia which the Rockefellers
55:10
wanted the Rockefellers reign very
55:12
interested in crushing Japan stopping
55:13
hope Japanese aggression on quote and
55:15
from from 1933 on and 31 on success I
55:20
mean how the Morgans were sort of
55:21
isolationist on Japan matter-of-factly
55:23
the one person in the State Department
55:26
of the 30 against world Japan which
55:28
those who see grew with a Bachelor of
55:30
Japan you look at this example do see
55:32
growing up masters can muster than
55:34
pro-japanese that’s not really the point
55:36
a point is he was a Bentley a Morgan
55:37
person II was cousins dating Morgan Jr
55:40
he Morgan Marion of the groom’s family
55:42
is very close relative so it so is it
55:46
conspiracy theories they were looking on
55:48
the skies is a cousin Morgan maybe is
55:50
his policies were also consonant is it
55:52
an action of his policies going along
55:54
with a Morgan financial assistance so at
55:56
any rate we’ve always gone by the way
55:59
john foster dulles were already
56:00
mentioned the rockefeller where for many
56:02
decades
56:04
he was an isolationist in world war ii
56:06
and after the war is over
56:08
I mean his problem comes up the oldest
56:10
son becomes the world will crusader
56:11
weapon that would feed him everywhere
56:13
but crush aggression everywhere our
56:14
tyranny how come he shift so radically
56:17
in 1940 to 1950 it could have been of
56:19
course intellectual shift the other hand
56:21
isn’t it keeps me going along with the
56:23
fact of the Rockefeller interests also
56:25
shifted isolationist the whole global
56:28
trading position any rate after World
56:30
War two we have a totally different line
56:31
up the line output is essentially the
56:35
Rockefellers become the senior partners
56:36
in the whole Rockefellers and Morgan’s
56:38
become permanently permanently allied
56:40
and Morgan’s becomes junior partners in
56:43
the Rockefellers that Eastern
56:44
establishment in 1945 or so on
56:47
and symbolize in many ways one thing the
56:49
Council of Foreign Relations is set up
56:51
by them more than Morgan’s and that the
56:53
world will want to push internationalism
56:55
and foreign loans all the rest of it
56:57
I was taken over by the Rockefellers
56:59
after World War Two and sort of a
57:01
friendly takeover not a hostile takeover
57:03
and the oil becomes the dominant for
57:06
situation in general and the
57:08
Rockefellers take it stays senior senior
57:10
post and the so-called Eastern
57:13
establishment so from then on the heads
57:15
of the Fed become doesn’t make much
57:17
difference then moving on rockefeller
57:18
although it’s interesting so excited for
57:20
the first guy Thomas McCain after Echols
57:23
leaves the cumin a brush with Truman how
57:27
much McKay becomes head of the Fed for
57:30
few years easy he was ahead of Scott
57:32
Paper Company which is now lies in the
57:33
Morgan interest after that when you make
57:36
Chesney Martin but much beloved figure
57:39
becomes head of the Fed maybe cousin
57:41
Martin jr. he’s insane Louis I think the
57:45
key thing is his father-in-law Mike
57:47
Davis with Secretary of War under
57:48
Coolidge was tied in with a Morgan
57:50
interest and an after after Martin we
57:54
have first a beloved Paul Volcker who
57:57
was lionized by everybody the press the
58:00
media I could then makes everybody else
58:02
e-66 even had a filter cigar the
58:04
charismatic figure I don’t think I was
58:06
reading the lion eyes my eyes that’s
58:08
because the fact he was he was who he
58:10
was and where chairman was fed and also
58:11
forth long time connected with
58:13
rockefeller world empire The Economist’s
58:16
or the taste of that Manhattan bat
58:17
National Bank you then that happened
58:19
back these economists before that for
58:21
Exxon corporations that were separate
58:22
his whole life in the Rockefeller ambit
58:25
Alan Greenspan by little an addition me
58:27
ladies ex Randian
58:29
our means family also before he became
58:31
head of the federal border and the more
58:33
directors of AIG or Morgan Guaranty
58:35
Trust Company as big morgan holding bank
58:37
he’s also of course the neck of the
58:39
Trilateral Commission should be
58:40
mentioned here’s a proposal council
58:43
correlation is getting kind of unwieldy
58:44
the David Rockefeller set up the
58:46
trilateral commission in the early
58:47
seventies a very small group
58:49
I think 75 people in United States
58:52
anything like that to sort of plan the
58:55
world a plan the world economic scene
58:56
and Laura suggests make suggestions by
58:59
the way I should say this also that the
59:00
young during what happens in Bretton
59:04
wood Bretton Woods for example was set
59:06
up the whole Bretton Woods system was
59:08
planned ahead of time during World War
59:10
Two like five hundred secret rulers had
59:12
up headed by the Council of Foreign
59:14
Relations conquer the morgan people
59:15
began to work their way back by late
59:18
39-41 reason norman Davis in the head of
59:21
a cfor was a Morgan person was also a
59:23
host buddy of Franklin Roosevelt so that
59:25
has personalization anyway they work
59:27
their way back and they plan the
59:28
post-war world both both the containment
59:31
policy and Cold War and also the
59:32
economic policy of Bretton Woods in the
59:34
banking the rest of it and there’s two
59:37
people the two Americans who are
59:38
planning it from CFR were magic a minor
59:41
and Albin Hansson
59:42
supposedly two opposite ends of the
59:44
spectrum they can find it being alleged
59:46
right when you’re a handsome Els those
59:47
actually very close to very close to me
59:49
it’s sort of like it’s like right left
59:51
on crossfire after Pepe Canada’s last
59:53
image more or less the same thing very
59:55
very nuanced difference being so for
59:58
writing this book all over respectable
60:00
Center and so what you got is a an
60:03
agreement on a painting boost for set up
60:06
and and just minor difference in kind of
60:09
negotiating it seems all talking one
60:12
more cut with Britain loss or a little
60:13
memory miner negotiation everybody very
60:15
happy for the post-war monetary picture
60:18
where essentially the English system
60:20
comes back with the dollar being a pony
60:22
goes bad instead of it instead of the
60:23
British Pound
60:24
so and basin and the state with a power
60:28
elite we essentially have Rockefeller
60:29
domination more largely with the Morgans
60:31
as being a partner the what happened in
60:35
post-world War two America is basically
60:37
the other there’s always competition
60:38
both in economics and politics and the
60:40
Eastern establishment has been
60:42
challenged like like sort of maverick
60:45
types in nineteen fifties on maverick –
60:47
mostly Tamiya Texas or Southern
60:50
California or Florida and were the
60:52
Sunbelt new Gotham self-made
60:55
millionaires a pop up so sort of so a
60:58
monkey wrench into the system and
61:00
there’s been cool the cowboy great book
61:03
through the carrion
61:04
reporter historian type of alcohol Oh
61:06
was the or a big footballing Yankee
61:07
cowboy war which is a great explanation
61:09
of the Watergate of all these political
61:12
since World War two Watergate on Kennedy
61:14
assassination one very interesting
61:16
package any rate the essentially he look
61:20
at I think very interesting way to look
61:22
at it but he looks at example the
61:24
Kennedy assassination basically a coup
61:26
by the Cowboys to take over to take
61:29
power that’s the Yankee Kennedy puts me
61:31
in quintessential Yankee Lyndon Johnson
61:32
the quintessential cowboy and once again
61:36
lone nut’ pops up and suddenly the
61:38
change and tremendous fundamental change
61:40
in power elite rule and then water heat
61:44
surface Watergate is a counter-attack by
61:45
the Eastern establishment using not
61:47
violence but the media CB it’s
61:49
respectable media PBS Washington Post
61:52
New York I’m a first up using control
61:55
and public opinion house Nixon who of
61:58
course basically cowboy taught committee
62:00
for the California it’s very interesting
62:01
kind of way of looking at it because
62:02
then you don’t look at Republican versus
62:04
Democrat son like you look at who the
62:05
Financial Group here what’s the you know
62:07
what’s going on who the power elite
62:08
forces at work and we’ve course we need
62:10
more analysis of this meaning more
62:12
scholars one of the problems in this
62:14
whole field is since the feel is not
62:16
considered respectable feel apparently
62:18
mean analysis Orthodox historians on
62:21
plus they work at it I can uh make time
62:23
some work out it’s more easier total bad
62:24
you know every three every battle of the
62:27
Civil War and great detail another bad
62:29
thing Morgan Rockefeller can combine and
62:31
so what you get is the people leaves the
62:34
field of analyzing that stuff is sort of
62:36
more marginal types independent dollars
62:38
or reporters and things like that attend
62:41
against it might make more mistakes and
62:43
that’s what they get jumped on is
62:44
crediting the whole whole approach
62:46
that’s one of the problems this whole
62:47
area tends to be so fulfilling prophecy
62:50
well it’s guys made mistake it all feels
62:52
make mistake but the pioneering have any
62:54
kind of new discipline this basically is
62:57
so anyway that’s the school comes from
63:00
looking at but these guys are doing
63:02
before they got into office after I got
63:04
out of office and I think I say yes the
63:06
kind of insight you get and you’re
63:09
looking at you know Brooks Assizes
63:11
throughout his life and
63:15
as John force with dolls and these
63:17
people mera echoes or anything gives you
63:19
a co a new perspective and and needs to
63:23
be brought out or bored out and
63:25
discussed our work is almost we’ve never
63:28
done that way and that’s more open to
63:32
the new one another way of looking at
63:34
the feds not just not just people doing
63:36
things everybody mr. Pettit sort of
63:38
screwed up for the main error things
63:39
like that but maybe the errors are also
63:41
systemically Latos really doing it why
63:43
they’re doing it maybe not so much an
63:45
error from their point of view it might
63:46
be perfectly rational the point really
63:48
forces that are operating it it’s it’s
63:51
like a farm policy your major cultural
63:53
policy if you look at agricultural
63:55
policy and I’ll leave you with that look
63:57
at this farm policy since the New Deal
63:58
it’s actually since 1928 and Hoover’s
64:00
started you look at this farm pilot 1929
64:03
Hoover started you look at the farm
64:05
policy looks irrational many economists
64:07
they see irrational why is it Iraq we’ll
64:09
look first you pay the farmers not the
64:11
gross stuff you pay them to grow less
64:12
you pay them not to grow food and then
64:16
that’s one thing and then you also pay
64:18
them another the division of the farm
64:20
agriculture Hazelton grow more food
64:22
presently irrigate have more fertilizer
64:25
in rural educational rest of it so it
64:28
increases their production in one hand
64:29
the federal government increases their
64:31
production they only hanataro government
64:32
pays on the cut production it seems
64:34
irrational it’s irrational from our
64:36
point of view it’s not irrational from
64:37
point view two groups one is part of
64:39
America the more and more bureaucrats to
64:41
a farmer they get paid both ways they
64:43
get paid from producing more they give a
64:44
paper producing less that’s great
64:46
those are still less than there’s a
64:48
large farmers would benefit from it
64:49
so in rationality is only thing kind of
64:51
which forever you’re talking about the
64:53
point of view first the economy or the
64:54
panels of the enforces they’re rational
64:56
the point view the forces at work it
64:58
isn’t that’s a I think my way it’s
65:00
important in general just believe you
65:02
with this thought yeah when we argue for
65:04
the free market they tend to look at it
65:06
as intellectual error it supports it
65:08
socialism state is more intellectual
65:10
errors wrong and illegal also probable
65:13
consequences or whether there’s
65:15
something else involving lis economic
65:16
interest among many of these guys
65:18
benefit from these policies at for it
65:20
but if they benefit from it you look for
65:21
examples you look at I was growing up in
65:24
the entering of the field and
65:25
free-market field you look at Nelson
65:27
Rockefeller
65:28
and a lot of our family status the help
65:30
and usual explanation of why they stated
65:33
usual exercises why they were
65:34
brainwashed by left weighing professors
65:36
or lying prep school teachers what’s one
65:38
way to look at by the way look guys
65:39
maybe they’re benefiting from it maybe
65:41
that’s why they’re for it maybe as a
65:42
tie-in maybe not so crazy I mean it
65:44
isn’t brainwashing and B’s perfectly but
65:47
if you’re immoral setting if I’m
65:48
morality they still disappeared anyway
65:50
but benefiting from their point of view
65:51
my things means deep investigation thank
65:54
you thank you very much

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