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Federal Reserve and the JFK Assassination

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A researcher who I very much respect refuses to get involved with Forums. However, he has suggested that we take a look at the issue of the Federal Reserve. Any comments:

"At the start of 1964 the U.S had the ultimate "Goldilocks" economy thanks to JFK's policies; his most dangerous adversary was the Federal Reserve which he was attempting to castrate...... suggest you focus on James J Saxon, Kennedy's comptroller of currency whose efforts in regard to reforming the U.S. Banking system feature in the November 18 1963 edition of U.S. News and World report.... these people were not happy with JFK and as they sit at the very heart of the ongoing elite power system which governs America beyond the "bodypolitic" they need to be looked at very closely...........unfortunately the only people to have seriously researched this subject are at the "far edge"........Eustace Mullins et al whom I met in DC in 2002; contrary to public perception he does not seem to be a crazed far right lunatic with gross anti semitic sentiments; au contraire he is a deep thinking revisionist historian whose knowledge on the U.S.Federal Reseve is unsurpassed."

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If this has anything to do with JFK's Executive Order 11110 regarding silver certificates, I think the case has been made that this order has been misunderstood by Jim Marrs and others as a threat to the Federal Reserve.

I don't know much about banking and economics, but what Edward Flaherty has written on this order makes since to me. Perhaps someone can debunk his debunking:


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If this has anything to do with JFK's Executive Order 11110 regarding silver certificates, I think the case has been made that this order has been misunderstood by Jim Marrs and others as a threat to the Federal Reserve.

I don't know much about banking and economics, but what Edward Flaherty has written on this order makes since to me. Perhaps someone can debunk his debunking:



Len Osanic and Greg Burnham have allowed me to quote this letter from Prouty.org many times in the past.

From Prouty.org

Letter of the Month


Date: Mon, 1 Dec 1997 16:54:13 -0800

Subject: Undermining U.S. currency by the High Cabal; the final "Front of the Cold War"

From: (Gregory Burnham)

Hello Colonel Prouty,

Approximately 20 years ago, while still in my twenties, I was dismissed rather aloofly as being "out of my depth" regarding what I saw as dangerous developments with regard to the history of currency, and ultimately the future of currency if the pattern continued. It has continued.

Would you care to comment on my scenario? Albeit rudimentary, perhaps it has some merit.

The founder of Sony Corporation, Akio Morita, a man I highly respect, commented that following the defeat of Japan he made several trips to America. He was apparently in awe that the U.S., a country less than 200 years old, should be capable of the kind of production (rooted in the military/industrial and oil complex) that defeated his country and was the driving force behind the defeat of Germany, as well. He noticed upon his arrival, and much to his dismay, that nearly everything that was chintzy, cheap, tinny, and easily broken, seemed to be labeled: "Made in Japan" in retail outlets across America. He went home determined to change that image. Hence, the Sony Corporation, which has since evolved from its humble beginnings as a manufacturer of stereo and T.V. products, to a recognized leader in that industry, and has successfully purchased C.B.S. Recording Company, among other highly significant ventures, was born.

Like Japan, the countries directly aided by our entering the war and those directly, or indirectly defeated by our entering the war, have many things in common. These countries were committed, their people patriotic, their military personnel dedicated professionals, and their resolve was firm, by our standards as well as their own. Their culture was time tested, their warring methods were analytical, well planned and well implemented, but ultimately, both our allies and our enemies were failing prior to our entry into the war.

Although most Americans did not see Germany or Japan as a threat to our form of government, the casual isolationist certainly would have recognized the threat that the aggressors posed to a nice European vacation, if nothing else. It was important to the average American to be victorious in that war. So, we were definitely at the fulcrum of the affair and at the epicenter of the victory. In order to complete our victory, however, the U.S. had to effectively achieve a feat that the world could barely comprehend at the time. So we set out, armed only with pen in hand (backed by nuclear ink), to overthrow the Gold Standard.

"Wait, hold on a minute! Wasn't that already done when FDR bailed/hocked us out of the depression," you say?

The answer is both yes and no. The "New Deal" was the "First Mortgage" on a loan never intended to be repaid by the borrowers. A Silver Certificate is an I.O.U., as legal tender it can be "cashed in" (no pun intended) for silver.

A Federal Reserve Note, on the other hand, is also legal tender. It too is an I.O.U. However, this I..O.U. can only be "cashed in" (pun intended) for another I.O.U. - and you and you and you and you, and your Big Brother, ad nauseum. And so, the age of: "A nation, economically standing on its own two stilts, was born."

The collateral securing the deal was the promise that there would in fact, be a future. Uncle Sam would see to that through the blood, sweat and tears of a generation of baby-boomers who did not yet exist! When this generation of Americans came of age, they would represent the largest "working force" group of citizens in our history. In the mean time, while we waited for this generation to grow up we needed something to keep us going. The powers that be were unable to motivate average Americans by offering positive hope, since that ideal was splattered across Dealey Plaza, crushed in Memphis, Tennessee, and finally pre-empted at the Ambassador Hotel. Nor could they motivate citizens through creating a credible negative threat behind which to rally the American people. Even before Vietnam and Watergate were being exposed, or the "Iran may take hostages, but they can't nuke us.", mentality set in, we were subjected to cleverly disguised propaganda campaigns like the cartoon show, "Rocky & Bullwinkle" with Boris and Natasha, or the satirical "Get Smart" portraying the CIA and KGB as U.S. Control versus Soviet Chaos.

Ultimately, the only war, vague enough to bear scrutiny, cryptic enough to be arbitrarily defined, and non-threatening (cold) enough to prevent panic, was escalated. Indeed, the ability to wage war defines a government's authority over its people. The scope of that authority is not measured by the actual "temperature" of the war zone. Instead, the perceived potential of mere tensions developing into a state where intentions are high enough to unleash a nation's war powers in earnest are created and promoted by the political "climate" of the day.

Cold wars are only cold in the middle. Through numerous pseudo-wars America was kept mobilized without having to contend with the fear of total annhilation. The cold war was a war of economic attrition. Some would say therefore, "We've won it." My question in response is, "Who are we?"

The value of foreign currency, the Yen, the Deutchmark, the Pound, the Frank, is no longer relative to a STANDARD - its value is measured in relation to the U.S. Dollar. Not only has America been off the gold standard and on the Dollar standard, but so has the rest of the free world. After the end of WWII it was advantageous to us for our currency to be so strong - it represented the economic strength of the PEOPLE of the U.S. We were the largest creditor nation. We all know that has changed. Yet I didn't have concern that "The Japanese are buying up America," in the past panicked decade or two. I mean it's not like they can take California to Osaka when they go to visit the family. And referring to any nationality of people as "they" is offensive. The fact that we owe more than we are owed, in one school of thought, is a much better position to be in... especially if you don't plan on paying it back. Which brings me back to my original question: Is it just me or does it seem likely that there is a major push to undermine the confidence Americans have in currency? I feel like I need a co-signer when paying cash! I some times am penalized for paying with cash because it is not the "preferred method" of paying. When the stock market goes on the incredible ride we saw earlier this year and is not followed by a severe economic back lash, especially without any change in monetary policy by the FED, I see that as an Economic Coup', where the losses are spread far and wide, but generally not deep, and the Cabalists rake in currency the next day.

Do you think that we will have any paper currency by 2000 a.d. - or are we being conditioned to lose confidence in it on the one hand, and also conditioned by reward and lack of penalty to gain comfort in using "credits", on the other?

If so, is it related to tracking, control, direct marketing, demographics, invasion of privacy - and last but not least - NSAM 11110?


Gregory Burnham


NSAM 11110 aka Executive Order 11110:

On June 4, 1963, a little known attempt was made to strip the Federal Reserve Bank of its power to loan money to the government at interest. On that day President John F. Kennedy signed Executive Order No. 11110 that returned to the U.S. government the power to issue currency, without going through the Federal Reserve. Mr. Kennedy's order gave the Treasury the power "to issue silver certificates against any silver bullion, silver, or standard silver dollars in the Treasury." This meant that for every ounce of silver in the U.S. Treasury's vault, the government could introduce new money into circulation. In all, Kennedy brought nearly $4.3 billion in U.S. notes into circulation. The ramifications of this bill are enormous.

With the stroke of a pen, Mr. Kennedy was on his way to putting the Federal Reserve Bank of New York out of business. If enough of these silver certificats were to come into circulation they would have eliminated the demand for Federal Reserve notes. This is because the silver certificates are backed by silver and the Federal Reserve notes are not backed by anything. Executive Order 11110 could have prevented the national debt from reaching its current level, because it would have given the gevernment the ability to repay its debt without going to the Federal Reserve and being charged interest in order to create the new money. Executive Order 11110 gave the U.S. the ability to create its own money backed by silver.

After Mr. Kennedy was assassinated just five months later, no more silver certificates were issued. The Final Call has learned that the Executive Order was never repealed by any U.S. President through an Executive Order and is still valid. Why then has no president utilized it? Virtually all of the nearly $6 trillion in debt has been created since 1963, and if a U.S. president had utilized Executive Order 11110 the debt would be nowhere near the current level. Perhaps the assassination of JFK was a warning to future presidents who would think to eliminate the U.S. debt by eliminating the Federal Reserve's control over the creation of money. Mr. Kennedy challenged the government of money by challenging the two most successful vehicles that have ever been used to drive up debt - war and the creation of money by a privately-owned central bank. His efforts to have all troops out of Vietnam by 1965 and Executive Order 11110 would have severely cut into the profits and control of the New York banking establishment. As America's debt reaches unbearable levels and a conflict emerges in Bosnia that will further increase America's debt, one is force to ask, will President Clinton have the courage to consider utilizing Executive Order 11110 and, if so, is he willing to pay the ultimate price for doing so?

Executive Order 11110 AMENDMENT OF EXECUTIVE ORDER NO. 10289


By virtue of the authority vested in me by section 301 of title 3 of the United States Code, it is ordered as follows:

Section 1. Executive Order No. 10289 of September 19, 1951, as amended, is hereby further amended-

By adding at the end of paragraph 1 thereof the following subparagraph [j]:

[j] The authority vested in the President by paragraph of section 43 of the Act of May 12,1933, as amended (31 U.S.C.821), to issue silver certificates against any silver bullion, silver, or standard silver dollars in the Treasury not then held for redemption of any outstanding silver certificates, to prescribe the denomination of such silver certificates, and to coin standard silver dollars and subsidiary silver currency for their redemption

and --

By revoking subparagraphs and [c] of paragraph 2 thereof.

Sec. 2. The amendments made by this Order shall not affect any act done, or any right accruing or accrued or any suit or proceeding had or commenced in any civil or criminal cause prior to the date of this Order but all such liabilities shall continue and may be enforced as if said amendments had not been made.

John F. Kennedy The White House, June 4, 1963.

Of course, the fact that both JFK and Lincoln met the the same end is a mere coincidence.

Abraham Lincoln's Monetary Policy, 1865 (Page 91 of Senate document 23.)

Money is the creature of law and the creation of the original issue of money should be maintained as the exclusive monopoly of national Government.

Money possesses no value to the State other than that given to it by circulation.

Capital has its proper place and is entitled to every protection. The wages of men should be recognised in the structure of and in the social order as more important than the wages of money.

No duty is more imperative for the Government than the duty it owes the People to furnish them with a sound and uniform currency, and of regulating the circulation of the medium of exchange so that labour will be protected from a vicious currency, and commerce will be facilitated by cheap and safe exchanges.

The available supply of Gold and Silver being wholly inadequate to permit the issuance of coins of intrinsic value or paper currency convertible into coin in the volume required to serve the needs of the People, some other basis for the issue of currency must be developed, and some means other than that of convertibility into coin must be developed to prevent undue fluctuation in the value of paper currency or any other substitute for money of intrinsic value that may come into use.

The monetary needs of increasing numbers of People advancing towards higher standards of living can and should be met by the Government. Such needs can be served by the issue of National Currency and Credit through the operation of a National Banking system .The circulation of a medium of exchange issued and backed by the Government can be properly regulated and redundancy of issue avoided by withdrawing from circulation such amounts as may be necessary by Taxation, Redeposit, and otherwise. Government has the power to regulate the currency and credit of the Nation.

Government should stand behind its currency and credit and the Bank deposits of the Nation. No individual should suffer a loss of money through depreciation or inflated currency or Bank bankruptcy.

Government possessing the power to create and issue currency and creditas money and enjoying the right to withdraw both currency and credit from circulation by Taxation and otherwise need not and should not borrow capital at interest as a means of financing Governmental work and public enterprise. The Government should create, issue, and circulate all the currency and credit needed to satisfy the spending power of the Government and the buying power of the consumers. The privilege of creating and issueing money is not only the supreme prerogative of Government, but it is the Governments greatest creative opportunity.

By the adoption of these principles the long felt want for a uniform medium will be satisfied. The taxpayers will be saved immense sums of interest, discounts, and exchanges. The financing of all public enterprise, the maintenance of stable Government and ordered progress, and the conduct of the Treasury will become matters of practical administration. The people can and will be furnished with a currency as safe as their own Government. Money will cease to be master and become the servant of humanity. Democracy will rise superior to the money power.

Some information on the Federal Reserve: The Federal Reserve, a Private Corporation.

One of the most common concerns among people who engage in any effort to reduce their taxes is, "Will keeping my money hurt the government's ability to pay it's bills?"

As explained in the first article in this series, the modern withholding tax does not, and wasn't designed to, pay for government services. What it does do, is pay for the privately-owned Federal Reserve System.

Black's Law Dictionary defines the "Federal Reserve System" as, "Network of twelve central banks to which most national banks belong and to which state chartered banks may belong. Membership rules require investment of stock and minimum reserves."

Privately-owned banks own the stock of the Fed. This was explained in more detail in the case of Lewis v. United States, Federal Reporter, 2nd Series, Vol. 680, Pages 1239, 1241 (1982), where the court said:

Each Federal Reserve Bank is a separate corporation owned by commercial banks in its region. The stock-holding commercial banks elect two thirds of each Bank's nine member board of directors.

Similarly, the Federal Reserve Banks, though heavily regulated, are locally controlled by their member banks. Taking another look at Black's Law Dictionary, we find that these privately owned banks actually issue money:

Federal Reserve Act. Law which created Federal Reserve banks which act as agents in maintaining money reserves, issuing money in the form of bank notes, lending money to banks, and supervising banks. Administered by Federal Reserve Board [q.v.].

The FED banks, which are privately owned, actually issue, that is, create, the money we use. In 1964 the House Committee on Banking and Currency, Subcommittee on Domestic Finance, at the second session of the 88th Congress, put out a study entitled Money Facts which contains a good description of what the FED is:

The Federal Reserve is a total money-making machine. It can issue money or checks. And it never has a problem of making its checks good because it can obtain the $5 and $10 bills necessary to cover its check simply by asking the Treasury Department's Bureau of Engraving to print them.

As we all know, anyone who has a lot of money has a lot of power. Now imagine a group of people who have the power to create money. Imagine the power these people would have. This is what the Fed is.

No man did more to expose the power of the Fed than Louis T. McFadden, who was the Chairman of the House Banking Committee back in the 1930s. Constantly pointing out that monetary issues shouldn't be partisan, he criticized both the Herbert Hoover and Franklin Roosevelt administrations. In describing the Fed, he remarked in the Congressional Record, House pages 1295 and 1296 on June 10, 1932, that:

Mr. Chairman, we have in this country one of the most corrupt institutions the world has ever known. I refer to the Federal Reserve Board and the Federal Reserve Banks. The Federal Reserve Board, a Government Board, has cheated the Government of the United States and the people of the United States out of enough money to pay the national debt. The depredations and the iniquities of the Federal Reserve Board and the Federal Reserve Banks acting together have cost this country enough money to pay the national debt several times over. This evil institution has impoverished and ruined the people of the United States; has bankrupted itself, and has practically bankrupted our Government. It has done this through the maladministration of that law by which the Federal Reserve Board, and through the corrupt practices of the monied vultures who control it.

Some people think the Federal Reserve Banks are United States Government institutions. They are not Government institutions. They are private credit monopolies which prey upon the people of the United States for the benefit of themselves and their foreign customers; foreign and domestic speculators and swindlers; and rich and predatory money lenders. In that dark crew of financial pirates there are those who would cut a man's throat to get a dollar out of his pocket; there are those who send money into States to buy votes to control our legislation; and there are those who maintain an international propaganda for the purpose of deceiving us and of wheedling us into the granting of new concessions which will permit them to cover up their past misdeeds and set again in motion their gigantic train of crime. Those 12 private credit monopolies were deceitfully and disloyally foisted upon this country by bankers who came here from Europe and who repaid us for our hospitality by undermining our American institutions.

The Fed basically works like this: The government granted its power to create money to the Fed banks. They create money, then loan it back to the government charging interest. The government levies income taxes to pay the interest on the debt. On this point, it's interesting to note that the Federal Reserve act and the sixteenth amendment, which gave congress the power to collect income taxes, were both passed in 1913. The incredible power of the Fed over the economy is universally admitted. Some people, especially in the banking and academic communities, even support it. On the other hand, there are those, both in the past and in the present, that speak out against it. One of these men was President John F. Kennedy. His efforts were detailed in Jim Marrs' 1990 book, Crossfire:

Another overlooked aspect of Kennedy's attempt to reform American society involves money. Kennedy apparently reasoned that by returning to the constitution, which states that only Congress shall coin and regulate money, the soaring national debt could be reduced by not paying interest to the bankers of the Federal Reserve System, who print paper money then loan it to the government at interest. He moved in this area on June 4, 1963, by signing Executive Order 11,110 which called for the issuance of $4,292,893,815 in United States Notes through the U.S. Treasury rather than the traditional Federal Reserve System. That same day, Kennedy signed a bill changing the backing of one and two dollar bills from silver to gold, adding strength to the weakened U.S. currency.

Kennedy's comptroller of the currency, James J. Saxon, had been at odds with the powerful Federal Reserve Board for some time, encouraging broader investment and lending powers for banks that were not part of the Federal Reserve system. Saxon also had decided that non-Reserve banks could underwrite state and local general obligation bonds, again weakening the dominant Federal Reserve banks.

A number of "Kennedy bills" were indeed issued - the author has a five dollar bill in his possession with the heading "United States Note" - but were quickly withdrawn after Kennedy's death. According to information from the Library of the Comptroller of the Currency, Executive Order 11,110 remains in effect today, although successive administrations beginning with that of President Lyndon Johnson apparently have simply ignored it and instead returned to the practice of paying interest on Federal Reserve notes. Today we continue to use Federal Reserve Notes, and the deficit is at an all-time high.

The point being made is that the IRS taxes you pay aren't used for government services. It won't hurt you, or the nation, to legally reduce or eliminate your tax liability.


TO: Len Osanic

FROM: Fletch Prouty

SUBJECT: Web Site Responses

a. Gregory Burnham Dec 1, l997

Dec 3, 1997

Few subjects over time get as much attention as the definition of "Money" and your approach to it is interesting. Actually there are about as many attempts at the obfuscation of what money really is, as there are for the variety of uses which it can be put to.

I recall that during my WW II flying days, when we used to fly from Africa to Asia, we went by way of the southern coast of Arabia. About half way across there is a small, and interestingly developed sheikdom called Salala. The British had obtained the rights to build a runway there as a refueling point and safety landing ground.

For this "right" they agreed to pay the Sheik in "Money" which in that remote area consisted only of copies of an Eighteenth Century coin... the "Maria Theresa" silver dollar. All were dated 1780 and were the size and shape of all other silver-dollars by weight (same as in USA); but what was their value... especially out there on the barren shores of Arabia?

I obtained several of them for swapping an Arab a new pair of canvas work gloves (value unknown). A modest exchange, to say the least. It was then that I learned that, when the British had produced enough of these coins, originally, to satisfy the Sheik's "rental" demand, the Sheik would not accept them.

The problem turned out to be that when he had obtained "His" originals with their last century date, he believed them to be the only "Legal" coins and would not accept others with other dates in their place. It happens that mine are dated 1780, also, and that the "counterfeit" ones the British had made for the Sheik with other dates had to be recast, because they were l93O's and 1940's.

My coins are 1780. The "legal tender" coins in Salala were 1780, and the British had to continue to produce these otherwise normal silver dollars with this only lawful date as validation. To you and me they were perfectly produced "Silver Dollars", and with some frequency I used to find others in circulation in other countries throughout wartime Arabia, Africa and Asia... all dated 1780.

Think that over. Is that what creates the value of MONEY...a small chunk of silver with a fixed date?

b. During the Nineteen-sixties, I was the Manager of the ordinary commercial Branch Bank in the Pentagon. As a function of my transfer from a military career to a banker's role, I was sent to the American Bankers Association Graduate School of Banking at the University of Wisconsin. The end of my schooling there coincided with the emergence of the new "Currency"....the Credit card. (Arthur Burns, then head of the Federal Reserve did much lecturing there for us.)

As is supported by a photo on my CD-ROM, I was one of 15 bankers who, as a member of the Automation Planning and Technology Committee of the American Bankers Assn, traveled the country supporting conventions on the subject of the Credit Card (not yet in circulation then) and what computers would do for money and banking.

The theme was, that the Computer would permit the bank to give better service for its customers. In the process, the American Bankers Assn. ordained the Credit Card and new Money... whatever that was going to be.

c. There is no end to this subject; yet it remains one of the most interesting and misunderstood factors of human economic existence. I would like to recommend a few volumes that I believe provide an important base to the subject: a few of which may be considered to be controversial:

1) "The New Paigrave: MONEY" First American Edition, 1989 by W.W. Norton & Co (Classic)

2) "The Secrets of the Federal Reserve" by my old friend, Eustace Mullins, Bankers Research Inst.

P.O. Box 1105, Staunton, VA 24401.

(Valuable research)

3) "Stored Labor: A New Theory of Money" by Hugh A. Thomas. (No address) Superb!

Thomas: "There is but one hope for freedom. That hope lies with the possibility that some day people will learn the true meaning of money, that money is their lifeline to an existence above that of an animal, that money offers them the ability to deal with others through the medium of agreement rather than the medium of force and, that money is an extension of their lives, that they own their labor: MONEY. When these things are known by enough people they will cut off the hands of the state and reclaim their lives."

d. BURNHAM has introduced another interesting subject with his statement:

"The founder of SONY Corporation, Akio Morita, a man I highly respect, commented that following the defeat of Japan he made several trips to America...Upon return home he noted that "Cheap" things were labeled

"Made in Japan" in stores in America. He went home determined to change that image. Hence, the SONY Corp, which has since evolved from its humble beginnings as a manufacturer of stereos and T.V. to be recognized a leader in that industry."

(That's not quite an accurate copy of Burnham's words; but I'll stop here for another purpose.)

It just happens that I was ordered to Tokyo during the early days of the Korean War period, and was assigned the job of "Military Manager of Tokyo International Airport" during the period of the U.S. military occupation of Japan. At that time it was the third busiest airport in the world, not only because of the Korean War activity; but because of just such business activity as Burnham describes on the part of Mr. Morita. Many other Japanese entrepreneurs were doing their best to revive from the losses and damage of WWII; but even more important was an another enormous business phenomenon.

I began to notice that day after day the few Japanese transport aircraft available, and countless large commercial aircraft from USA Charter Companies began to jam the parking ramp on Tokyo Airport. They were loaded with items from the States.

US money and manufactured material was flooding the place. Have you ever really thought why Mr. Morita, a fine Japanese businessman, would name his company SONY? That is not a Japanese word, nor is it a Japanese acronym.

The name SONY began to appear at the airport after the flood of post-war recovery money, and one of the meanings of those four letters is "STANDARD OIL OF NEW YORK". That has always been SONY or SOCONY. (The Standard Oil Company of New York)

THE ROCKEFELLERS had arrived to re-finance Japan. [A prime example of OUT-SOURCING, my emphasis. TM]

What this meant was that during those "MacArthur" days Rockefeller money was flooding Japan; and money such as that (Yes, I'm using the term MONEY) kind of "money" began the amazing job of rebuilding Japan.

We should all note that these phenomena took place in what we called the Korean War and the Vietnam War eras. These conflicts carefully orchestrated and planned during the Cairo and Teheran Conference days in Nov/Dec 1944 had been ably designed to pour hundreds of billions of dollars/money into those activities. The Vietnam War cost ran well over $500 billion... and this was not Maria Theresa "Dollars".

e. Your good letter has caused me to go back through some of my dog-earred records to rediscover and to confirm much of what you have written. It is my belief today that this High Cabal is going to increase around the world rather than to have itself modified.

Thank you for your good letter,

L. Fletcher Prouty

Edited by Terry Mauro
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