The Creature from Jekyll Island: A Second Look at the Federal Reserve
by G. Edward Griffin
Book Review by Dr. Sal Martingano, FICPA
“The love of money is the root of all evil, because he who controls the money supply of a nation, controls the nation”James A. Garfield
Do you ever wonder where money comes from, how it’s created or how it’s used to build wealth? Most cultures have a form of “fair exchange” that is the equivalent of modern-day money. Most countries have developed a form of money that has universal acceptance. Money must have value, usually backed by precious metals. When there is more money than backing, you have inflation and the eventual collapse of the currency.
In doing research for my book, “The Declaration of Dependence…a Betrayal of the American Dream”, I came across “The Creature from Jekyll Island: A Second Look at the Federal Reserve”. I was blown away by Griffin’s in depth, detailed coverage of the period during the early 1900’s that changed the balance of political and economic power worldwide. As Griffin expresses:
“This is a story about limitless money and hidden global power. The good news is that it is as fascinating as any work of fiction could be, and this, I trust, will add both pleasure and excitement to the learning process. The bad news is that every detail of what follows is true.”G. Edward Griffin
Griffin lays out the evidence of one of the best concealed crimes against our country in modern history. This is the story of how the Federal Reserve System, aka “the Fed”, was created and how it has been used to defraud our money supply, create a “Central Banking System“, provide funding for warring countries, and receiving hefty percentages of the spoils from the victor- as well as consolidating the worlds wealth at the expense of ordinary citizens.
The Federal Reserve Act of 1913 began the transformation of our currency into “fiat” currency (not backed by anything of value). Further, the Fed has the power to print unlimited amounts of “fiat” money. The Fed creates debt by making loans to banks at a special Fed Funds Rate in order to collect “interest” on money that actually does not exist. (Hmmm, I don’t remember learning this in H.S. American History class…..do you?)
Why Jekyll Island?
The actual story begins with a clandestine meeting of six of the wealthiest and most influential men in business and banking of its time, controlling one quarter of the entire wealth of the world. These men were competitors in the world marketplace but realized that a ‘Free Market’ was their common worst enemy. They agreed to change the economic structure of banking via government approved regulation. They met on a small secluded island off the southern coast of Georgia called Jekyll Island in 1910, to insure secrecy. Present were Senator Nelson Aldrich, chairman of the national monetary commission, Abraham Piatt, Sec. of the U.S. Treasury, Frank Vanderlip, President of National City Bank of NY, representing William Rockefeller, Henry Davidson, Partner of J.P. Morgan investment bank, Charles Norton, President of J.P. Morgan First National Bank of NY, Benjamin Strong, head of J.P. Morgan Bankers Trust Company and Paul Warburg, representing the Rothchild banking dynasty of England. Griffin further explains:
“The reason for secrecy was simple. Had it been known that rival factions of the banking community had joined together, the public would have been alerted to the possibility that the bankers were plotting an agreement in restraint of trade—which, of course, is exactly what they were doing.”G. Edward Griffin
Our nation’s money supply used to be controlled by ‘Federal Notes’ backed by gold and silver. However, the Federal Reserve System would replace gold and silver backing with ‘fiat’ money; paper money not backed by gold or silver but by nothing but thin air and the understanding that citizens were forced by the government to accept it. Griffin named this banking system the “Mandrake Mechanism” after the 1940’s comic book character, Mandrake the Magician. Sections two and three of this book gives great detail and is a MUST read.
How the Federal Reserve Bank System Works
The Federal Reserve Bank: (actually 12 regional banks making up the Federal Central Bank of the United States)
- Is NOT A BANK but a private corporation owned by J.P Morgan Chase, Citigroup, Bank of America and Wells Fargo.
- Has NO RESERVES but maintains reserve balances (Federal Reserve Deposits) that private banks keep at their local Fed Bank.
- Is NOT FEDERAL but an independent entity of the Federal Reserve Act of 1913.
“The founders of the Fed named their creation, ‘Federal Reserve Bank’, to give the appearance of a government-controlled entity instead of the privately-owned corporation that it is.“
• The Fed sells government securities (loans) and uses the interest from those securities to control the nations ‘prime’ interest rate that commercial banks use for lending.
• Commercial banks borrow money from the FED requiring no collateral. Loans are re-paid via the reduced Fed Fund Rate. Consumers pay the higher Prime Lending Rate.
Fractional Banking System
Commercial Banks can loan 9 times the money it borrows from the Fed to consumers, receiving interest on each of the 9 separate loans. The result is that money is legally created out of thin air as long as the government enforces the system.
The Federal Reserve System is a Legalized “Ponzi Scheme” that Represents the Very Essence of Socialism- Under the Mask of Democracy
Money no longer dictates the wealth of a nation, the manipulation of money does. Having the signature of the Secretary of the Treasury and the words ‘United States Treasury’ printed on our money is an insult to the American public. Griffin outline why the FED must be abolished. This review just scratches the surface of what Griffin has documented in his book. The real problem, Griffin concludes, is ideologies and philosophies like collectivism, which asserts that the group is more important than the individual and that government is justified in any act so long as it is claimed to be the greater good for the greater number of people.