Summary of The Creature From Jekyll Island
Copyright © 2011-2012 by Zack Smith .
All rights reserved.
IntroductionThe following are my notes from a speech given by G. Edward Griffin about his book The Creature From Jekyll Island.
Griffin begins by providing an interesting binary permutation:
My notesThe Fed is doing what it was made to do, and that is the problem. The Fed needs to be abolished.
What it was made to do is not what its publicly stated goal is.
Its inception: The bankers who designed the Fed met at Jekyll island, which is off the coast of Georgia.
It was in 1910 that the Fed was conceived there in a highly secret meeting. Jekyll Island was privately owned in 1910 by millionares. The island had a number of very fancy homes on it, called by the their rich owners "cottages". They met at the Jekyll Island Club House.
In November 1910, Senator Aldrich sent his private railroad car to pick up the bankers and they traveled anonymously to the island.
A placque in the club room says the Fed was created here. (Its inscription admits to a conspiracy.)
A runs on banks led to the concentration of financial power in the banks on Wall Street, known as The Money Trust. The public wanted the power of the Money Trust (Wall Street) broken. They recognized the dangers posed by Wall Street banks.
Attendees of meeting on Jekyll Island were:
These were competitors! This meeting was about eliminating competition. John D Rockefeller's famous quote: "Competition is a sin".
After the Fed was created, participants wrote of the meeting and bragged.
Trivia: JP Morgan was the model for the capitalist in the Monopoly game.
Vanderlip later wrote that the bill would have been rejected as a means of breaking the Money Trust, because it was written by the Money Trust: Hence the private nature of the meeting.
What is a cartel? A cartel is a group of independent owned business that come together to reduce or eliminate competition through:
15 years before the 1910 meeting, the Wall Street banks began many joint ventures. The formation of the Fed was the culmination of this.
It is significant that the Fed went into partnership with the government. The payoff for the government was free money for government programs. The government sells bonds to get cash.
The Fed has the right to print money. It creates money out of thin air to buy bonds, providing this money to the government. The bond is a promise from the government to tax citizens and companies in order to pay off the bonds.
Griffin now explains Fractional Reserve Lending. Deposit some amount, bank now effectively has 10 times that to lend. That's the rule. Fractional Reserve Lending has existed for hundreds of years. They lend it out to make money.
The payoff for the banks is that they can exploit Fractional Reserve Lending.
The banks earn interest on money created for the government. They profit from Congress's foolish spending.
The extra money that enters the economy causes:
Therefore the purchasing power falls and this loss represents increasing impoverishment for taxpayers.
Inflation is a hidden tax.
Because purchasing power of dollars is constantly falling, the earlier that you have money, the luckier the people who have it first. The government has it first.
"In times of inflation it's a good time to borrow."
Economic contraction results in the banks taking your collateral.
The lost purchasing power is seized by the government and banks.
Inflation was an intentional hidden tax devised by the kings and banks of Europe.
What is the Federal Reserve System?
The first draft was the Aldridge Bill. It was voted down because Aldridge's name was on it.
The second draft had two Democrats' sponsoring it: Glass and Owen.
The Federal Reserve Act was signed into law December 1913 by Woodrow Wilson.
The Fed is not a part of government, it's a corporation chartered by Congress, with stocks held by member banks. But these stocks do not provide private ownership in the Fed.
The banks cannot sell one of these stocks. Larger banks put up more capital therefore have more stocks. Yet each bank has one vote. Votes don't do much: They're only for electing officers of regional banks. The Fed president appoints directors.
Therefore the regional banks have no real power. Therefore there is no diffusion of power throughout the Federal Reserve "System".
It is not a government agency.
The Fed is a partnership between the government and a private cartel.
Who owns the Fed is not important. Instead we should ask: What does it do? It creates money out of nothing. If it were run by Congress instead, it would do the same thing. Therefore moving control of the Fed over to Congress is a non-solution.
European central banks do the same.
Fed presided over the financial catastrophes of 1921, 1929, 1987 et cetera.
Stabilizing the economy, which is the stated objective of Fed is not what it has done. Quite the opposite.
The purpose of a cartel is to make money for its members.
What was the actual purpose of creating the Fed? The banks wanted to: