The Warburgs and The Federal Reserve - Whats the Big Deal Anyway?

I was watching the Glenn Beck show (by the way I really like his show) on June 26th but I didn't remember the deflation discussion because I tuned out the speaker (actually fast forwarded the recording). In reviewing it I remembered why I had tuned it out.

I agree with him obviously on his deflationary scenario but what made me tune him out was his eulogizing of S.G. Warburg. The Warburgs are and interesting family. Paul Warburg came to the United States and became the mastermind behind tuning our money supply over to the private banking firm we now call the Federal Reserve (That's right its not a government entity) and eventually the income tax. Both of which were passed by stealth. (Sound familiar)

Without the Federal Reserve, there would be no national debt or income tax. Thanks Paul. So Paul was in charge of the US financial system during WWI when we were fighting the Germans. What was his brother James doing at the time? Well he was in charge of the German economy as the head of their central bank. Of course this posed no conflict of interest did it? James' policies were responsible for the hyperinflation that occurred in Germany during the Wiemar Republic, while a few years later his brother Paul was responsible for the US policies that gave us the Great Depression.

So eulogizing his Son who fled Germany and relocated to England after his dad's policies destroyed his home country so that he could do to England what his brother and uncle did to Germany and the US, to me is a bit much. After the Warburgs fled Germany, that economy was able to become the strongest in Europe. And what became of the UK, the Warburgs new home?

The UK is now broke but the good news is that the Warburgs have become uber rich.

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