The Creature from Jekyll Island : A Second Look at the Federal Reserve

G. Edward Griffin

"The secret meeting on Jekyll Island in Georgia at which the Federal Reserve was conceived; the birth of a banking cartel to protect its members..."

Some observations and snips:

• Modern alchemists have succeeded in converting the lead bullets of war into gold.
• With out the ability to create fiat money most modern wars would not have occured
• 12 Banks could issue currency. Most banks were national banks
• 15 setting reserve ratios
• 16 as with all cartels it had to be created by law under the deception of protecting the consumor
• 17 the Fed Reserve cartel is a copy of the Europian bank cartel
• 20 Myth - protect the public, Reality - screw public by creating inflation
• 21 it is to benifit government, not the public
• 25 feds pay for banks loses - FDIC insured bank deposits
• 28 banks don't want loans to be paid off. it means they have to find another borrower. which is why the national debt will never be paid off. it's a jobs program for banks.

  They make my point that the National Debt will never be paid off on this page.

• 29 there are few recorded instances in history of any government getting out of debt
• 39 xerox this page and give it to pat. this is how it is working now with all the bailouts.
• 57 FDIC will bail banks out of all the bad mistakes they make and taxpayers will pay for it
• 60 FDIC insuranse is a fraud. it is the printing of money
• 61 in reality it only protects BIG banks. they let small banks fail. the law is UNFAIR.
• 68 FDIC created to insure bank deposits by FDR
• 69 real estate loans moved from the free market to political world
• pat real chapter 4 - its about you - home sweet loan
• 70 FDIC loan limit of $100K protects rich corporations, not people
• 77 writting off loses over a 40 year period. this is an accounting standard created by CONGRESS, not honest accountants who want to accuratelly represent a business financial state.
• 83 printed money keeps them from being voted out of office for raising taxes
• 85, 86, 87 removed gold from world finance in 1944 or world FIAT money
• 89 using IMF on a world basis they created FIAT money for the world, like the FDIC did in the use. basiclly removing gold from the world money system and replacing it with FIAT money
• 90 more of above
• 91 aug 15, 1971 was last day foreigners could trade dollars for gold. that was done by Richard Nixon. also more of the same on 89 and 90
• 93 dollars made on printing presses are real
• 94 the dollar WILL collapse because of economic policys of US government. the only question is WHEN.
• 107 loan, loan more and more loans to avoide default. a repeate of the same US game played at the international level
• 132 so it really is a "New World Order"
• 136 "will pay to the bearer on demand" and "is redeamable in lawfull money" removed from all US bills in 1964
• 142 with inflation prices do not go up, the value of money goes DOWN.
• 143 fed says its purpose is to stabalize prices.
  it doesnt!
  inflation caused by printed money causes prices to rise
• 148 no gold system means unlimited credit, unlimited money, unlimited inflation - ie: its an easy way for the government to tax us by printing money
• 152 "Pay to the bearer on demand" was used by jewelers and old bankers to say there scripts were backed by gold

  founders wanted to limit fed to coining money, not printing money, along with a system of weights and measures to measure the weight of gold and silver money

• 155 FIAT money - money not backed by ANYTHING AND declared by law to be legal tender so people are forced to accept the fiat money
• 160, 161 wars usually cause governments to issue fiat money because it is an easy way for the government to tax the people with out the people knowing they are being taxed. it takes a while for the inflation to show up. while when the government sticks a gun in your face and demands 20 percent of you income in taxes you know rather quickly you are being taxed
• 162 this is a lie!!!! our grandchildren will pay for our deficit spending! this is a lie!!!! we are paying for our deficit spending right now because of the inflation caused by printing and spending the money.

  our grandchildren will pay for the interest on it that the feds pay to the federal reserve bank, but we pay for the cost of printing the money NOW via inflation

  he notes that the people that sell goods and services to the government are paid NOW in real money. these people dont take IOUs which say they will be paid in 60 years by our children.

  yes WE are paying for our deficit spending NOW, it is a nice sounding lie that our grandchildren will pay for it.

• 164 FIAT money is a hidden tax that causes inflation
• 168, 169 in the old days when jewelers loaned more gold out then they had on hand by giving out scripts that said "pay to the bearer on demand" they created money out of debt.

  when they do it now with the fractional money system where they only have to keep 10 percent of their deposits on hand they are doing the same thing as the jewelers did - creating money out of debt.

  he says fractional money is a transation from receipt money which is backed by 100% deposits to fiat money which is backed by nothing.

  he says as soon as the ratio goes to zero, ie ie the bankers don't have to keep any money on hand, the system goes from a fractional system to fiat money

  he says fractional money almost always degrades into fiat money

• 171 the only way for an honest bank to make money is by charging fees for its services of money storage, currency exchange, money transfers and notary services.

  it becomes corrupt when they lend out more money then they have on hand.

• 174 private banks used to issue their own money, but the public was not forced to accept it. the money was not legal tender
• 176, 177 the Federal Reserve System is a copy of the system used by the bank of england. they both print money which is backed by nothing out of thin air
• 178, 179 they print money (the central bank) they loan the money to the government and the government pays them intrest on the money they printed and loaned the government

  is that what I read?

• 180 boom, bust, inflation .... repeat again & again
• 183 who cares if it doesn't work as money! its an easy way to tax people, without the people knowing they are beging taxed!
• 186 they print money backed by nothing! its not magic!
• 187 if everybody that borrowed money from banks, (ie the federal reserve system) paid back their loans there would not be one cent of money in circulation. interesting see page 202 i think everybody is 1) congress that borrowed money (and caused it to be printed) to pay off government bills 2) the member banks who borrowed money (and caused it to be printed) so they could loan it to people on the street. (i am not sure about item 2 (probably true - see 193, 194 item 1) )
• 188 repeat of above of page 187
• 193
  1. congress tells the banking cartel to loan it money
  2. the banks print the money and loan it to congress
  3. the banks collet intrest on the money they printed and loaned to congress

  see pages 178 & 179 for the same thing more important congress can tell the banking cartel to print as much money as congress needs my question is this amount the $10 trillion national debt amount today? or is it greater because member banks are allowed to have the federal reserve print money for them to borrow? (probably true - see 193, 194 item 1)

• 193, 194 - 3 ways for the federal reserve to create money
  1. make loans to member banks thru the discount window
  2. purchasing treasury bonds thru the open market committee see page 196
  3. changing reserve ratio member banks are required to hold

  each method takes an IOU and converts (creates) it into money

  for item 1 banks borrow mone from the fed and loan it out at higher intrest rates.

  if a bank borrows $100 from the fed and the reserve ratio is 10:1, the bank can then lend out $900 or 9 times the amount borrowed from the fed. it has to keep the $100 on hand to so it can give money to people who want to withdraw money from their bank accounts

• 195, 196, 199 item 2 on page 194 said t-bills create cash
  1. congress prints a t-bill
  2. congress give the federal reserve the t-bill it just created and the federal reserve gives congress a check for the amount of the t-bill. (read the federal reserve prints the money for congress)
  3. congress deposits the check it got in step 2 into its bank account and uses the money to pay its bills

  and thru the magic the bank fiat money created is 9 times the amount of the national debt, of course the 9 times is just the number used in the reserve ratio.

  the total fiat money created is 10 times the national debt with the other number also coming from the ratio - a ration of 10:1 give the 10 in this paragraph and the 9 in the prior paragraph

• 200 the only people who benifit are the government and the banks. the rest of us lose thru inflation
• 201 this covers t-bills in china
• 202 magic with foreign IOU's

  the fed was created so congress can print all the money it needs - well the fed prints all the money congress needs and loans it to congress

  if we paid off the national debt all money would disappear from circualation. there would not be a dime of money on the street - see page 187

  taxes are NOT needed to run and operate the government. the government could operate simply from having the fed print money for it.

• another conspiersy - the british forced the germans to sink the lisitania to get the americans into the war
  • 244, 245 newspaper articles can be bought
  • 247 lisitania sunk, may 1, 1915
  • 248 march 8, 1915 - captian of lusitani resigns. he doesn't want to risk passenger lives doing military stuff
  • 249 british change rules about passengers being allowed to leave cargo ships before the germans are allowed to sink the ship
  • 250 ad placed by the germans in 50 us newspapers tells americans that they might be killed if they took a trip on the lusitania
  • 251 us government stops 49 of the us newspapers from running the ad about americans dying if they take a trip on the lusitania
  • 25? the plot to sink the lusitania thickens
    • no detroyer escort for lusitania as promised
    • lusitania told to cruse at 25% of full speed instead of full speed, to reduce fuel costs
    • lusitania sunk
• 259 banks love war
• 311 england tells american colonies that they cant issue paper money and must use money issued by england. this teaches colonists a lesson. paper money is bad!!! don't use worthless english paper money, use gold or silver coins. remember to put this lesson in constitution.
• 313 wage & price controls are caused by fiat money, or by the inflation caused by fiat money.
• 315, 316 constitution - no paper money

  "bills of credit" is a big word for paper money

  states forbidden from issuing "bills of credit"

  feds not given power to issue "bills of credit"

  which means the people are allowed to issue "bills of credit", ie: via private banks

  only gold or silver money allowed

• 317 courts wont make it unconstitutional if it causes government to collapse. (hey supreme court justices need their high paid jobs)
• 318 gold and silver the only money allowed
• 321 for a small fee you could take your gold or silver to the mint and have them make coins out of it
• 328 an end rund around the constitution. congress borrows the money by issuing t-bills. the federal reserve takes the t-bills and prints the money and gives the freshly printed money to congress.

  the constitution gives congress the power to borrow money, but does not give congress the power to print money.

  this sham of borrowing the money from the federal reserve and having the federal reserve print the money gets around that issue

• 346, 346 can banks issue money? mcculloch v maryland 1819 - YES!
• 371, 372 civil war was about tarrifs and taxes, not slavery
• 384 lincoln prints money for civil war
• xxx mandrake mechanism - used through the book for creating money out of thin air. mandrake was a magician who did something like it in one of his acts
• 478 borrow more money from the fed so you can issue more loans. money created out of thin air.
• 484, 485 why the national debt will never be paid off
• 493 what caused the 1929 stock crash?
• 497 the rich sold their stocks in time to avoid the stock crash - insider information

  the public got screwed - no insider information

• 500 fiat money is used to steal wealth by banks and the government
• 501, 502 herbert hover did the same thing that obama is doing now to end the great depression. then FDR did more of the same
• 508 they do pay interest on the national debt. even though they loaned the money to themselfs. 2001 a family of four pays $4,500 in interest on the national debt
• 568 a cartel protected by federal law

  90% of fed debt is held by private individuals & institutions in the private sector

• 569 JFK rumor - its false
• 573 shutting down fed would wipe out economy
• 574 a plan convert fiat money to gold backed money (i have a better plan - over throw the government and string the bastards up from street lights)