The Federal Reserve

Posted: March 1, 2015 in Books, Finance, Philosophy
Tags: , ,

creature from jekyllAbout a month ago I did a Google search on the Federal Reserve.  I had always wondered what exactly it was and wanted to find out more.  It has been a very interesting journey ever since!  I recently finished reading the book “The Creature from Jekyll Island” by G. Edward Griffin.  It is a fairly large book, 608 pages to be exact, but I highly recommend it.  I became aware of it after watching a Glenn Beck episode about “The Fed.”  He interviews the author and discusses the book in the episode.  The show is about 40 mins, so if you have no interest in a 600 page book, it makes a decent substitute.  Glenn Beck episode on the Federal Reserve: aired Aug. 25, 2011.  I had never watched, listened to or read anything by Glenn Beck until this.  Interestingly, he was fired 3 weeks after this show aired.  The whole thing is a little conspiratorial so take it with a grain of salt.  Do your own research.  If I had to choose to believe the book versus the Fed, I would lean toward the book.

So back to the book… The Creature it alludes to is The Federal Reserve.  Jekyll Island is an island off of Georgia where a clandestine meeting took place in 1910 that culminated in the birth of The Creature.  It was held under great secrecy because the members of the group knew that if the public found out about the meeting they (the public) would never go along with the proposal.  And here is why… the group consisted of:

  • Benjamin Strong
  • Abram P. Andrew
  • Paul Warburg
  • Senator Nelson Aldrich
  • Frank Vanderlip
  • Henry Davison

Now none of these names may jump out at you.  But what about Rockefeller, J.P. Morgan, Rothschild?  You’ve probably heard of them.  These are some of the richest men in history.  Lets look at these 5 men more closely.

Senator Nelson Aldrich – Republican Whip in Senate, Chair of National Monetary Commission, authored the original Federal Reserve Bill.  He is a business associate of J.P. Morgan and father-in-law of John D. Rockefeller, Jr.

Abram P. Andrew – Assistant Secretary of Treasury

Frank Vanderlip – representative of William Rockefeller

Henry Davison – representative of J.P. Morgan

Benjamin Strong – representative of J.P. Morgan

Paul Warburg – credited as the mastermind of the plan.  Partner at Kuhn, Loeb and Co.  Representative of the Rothschilds.  Interestingly, the character Daddy Warbucks from Little Orphan Annie is based off of him.

These men represent 1/4 of the wealth of the entire world.  25% of the wealth of the entire world!!!  That is just completely insane!  Other estimates say it is likely closer to half of the wealth of the world!!!  Holy crap batman, that is A LOT of money!  These men are all fierce competitors and they got together to hatch a plan, together?  Their motives must have been totally pure… right?

In short they designed the Federal Reserve, a cartel, in partnership with the government.  A cartel is an agreement between competing firms to control prices or exclude entry of a new competitor in a market. Sounds healthy for everyone.  As a side rant this sounds exactly like how the college football system works… hmmm.  They picked the name Federal to sound authoritative and governmenty.  It has nothing to do with the government, it isn’t Federal at all.  They picked the word Reserve to sound calming and stable and imply that they have reserves… they don’t.  On their website the explicitly say they don’t have any gold and that they aren’t employed by the governement.  It is a private central bank.  No one knows exactly who owns or runs it.  All of its books and dealings are completely private.  We are not allowed to know.  Its officials are not elected.  The president can appoint the chairman from an approved list provided to him by the Federal Reserve (sounds communisty).

These men had 5 stated goals of the cartel, *cough, *cough, Federal Reserve.

1.  Stop the growing competition – they hated the new banks cutting in on them.  Sounds cartel-ish…

2.  Obtain franchise to create money.  They wanted to be able to create money out of nothing and then lend it out and charge interest.  So, let me get this straight.  They create money out of nothing??? Lend it… and charge people interest??? Yep!  I agree this is a great business model, I would like in on this.  Oh I can’t, see #1.  All along I thought they actually printed money.  They don’t even have to do that!  They just make it up out of thin air.

3.  Get control of ALL banks’ reserve funds.  To protect them from runs and currency drains.  Sounds slightly more reasonable than the first two at least.

4.  Shift bank losses to taxpayers.  They didn’t want to be on the hook if they lost money.  They wanted the government to guarantee everything.  Basically, they can never lose becuase they will always get bailed out by taxpayer money.  So to compare to my personal finances I could take the wildest risks in the stock market and if I lost it all, I would get it all back from the government?  Risk free investing?  Yes, please!  Oh, wait… see #1.

5.  Convince Congress and the population that this is all for our good and to protect us.  How sweet, the Fed is trying to protect us.

In short, the Fed partnered with the government to create money out of nothing and make money by charging interest on it.  We the taxpayers are answerable to it for its losses.  The government allowed this monopoly to create and control the money supply.

Question: Why would the government want this?  Answer: It gives the government the ability to get any amount of money it wants without having to raise taxes.  People get mad and ask questions when you raise taxes, or elect new officials.  The government either has to cut expenses or raise taxes to have more money.  This way they get more money and we pay for it via inflation.  This is the secret tax of the whole system.  Our money loses value everytime the Fed gives the government money.  So in the end we lose, and lose, and lose.  Compounded yearly, forever.  Over your entire career the government will basically take back all of your wealth via this mechancism.  5% compounded interest, removed from your buying power, forever.

The really interesting thing is that this mechanism means that the government really doesn’t have to collect taxes.  They can have money anytime and tax us via inflation.  So why do they?  Basically, to keep up appearances.  We would start asking questions if the taxes went away.

Again, this is a 600 page book, so this is a very brief summary of some of the more interesting points.  Watch the video by Glenn Beck and pick up a copy of the book.  You will learn a lot about money, banking, finance, government, central banks, bail-outs, inflation, and more.  Knowledge is power!  Be skeptical of people looking out for your good.  Be skeptical of wealthy men meeting together in secret.  Look out for your own financial and physical well being.  Have a diversified financial strategy and be prepared!  Consider adding things like food, supplies, guns, ammo, gold, silver and hard assests into your financial plan.  Be prepared for impending financial difficulties.  Fear the Creature from Jekyll Island!!!  (I just had to end with a conspiratorial tone… I’m really not a conspiracy nut)

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Comments
  1. goldenbear77 says:

    Thank you for this information! Troubling but informative!

    Like

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