The Federal Reserve Creature
The Federal Reserve Creature is diabolical and insidious.
It started with a secret meeting at Jekyll Island in 1910, was enacted in 1913 and has caused havoc and problems in the U.S. ever since.
This page is provided to shed light on how our economic system really works. It adds an important piece to the puzzle of why we continually get into economic messes—that get increasingly worse. It also provides food for thought on how to to get out of this economic insanity.
Beginning of the Shell Games– Federal Reserve Creature
The original purpose of the Federal Reserve Act was to supposedly stabilize the U.S economy after the Panic of 1907 when several banks collapsed. After 100 years the record of the Fed is dismal.
Edward Griffin “The Creature from Jekyll Island” exposes the Fed for what is has done:
“Since its inception it has presided over the crashes of 1921 and 1929, the Great Depression of ’29 to ’39, recessions in ’53, ’57, ’69, ’75 and ’81; a stock market Black Monday in 1987, and a 1,000% inflation which destroyed 90% of the dollars purchasing power.”1
Lets not forget the past dozen years where we had the dot com bubble the housing bubble, derivatives and the current economic downturn that seems to have no end in site.
The centralized planning of the Fed and government have created planned business cycles, bubbles, inflation, unsustainable trade imbalances and explosive government growth from a
Fiat Currency System
of money. The US currency has been
so badly, we are fast heading towards and economic endgame.
The Real Reason for the Fed – Federal Reserve Creature
Edward Griffin also notes in his book that the Fed hasn’t accomplished its objectives because stabilizing the economy was not its objectives! “The System is merely a cartel with a government facade.”
Griffin goes on to say: “when there is a conflict between the public interest and the private needs of a cartel—a conflict that arises almost daily—the public will be sacrificed.”
Think of it this way: The Federal sets economic policy including interest rates. When the economy heats up too much, they increase interest rates, when it cools they lower interest rates.
Businesses can’t easily determine when the interest rates will increase or decrease because the centralized planning mentality of the Fed and government who control the money supply and economy, not free enterprise and natural economic law.
With natural economic law interest rates would increase and decrease according to what the market will bear, not what imperfect humans (the Fed) think it should be. People just aren’t smart enough to outwit natural laws—no matter what their degrees, or IQ are.
“Permit me to issue and control the money of the nation and I care not who makes its laws.”
~ Amsched Rothchild.
The Name of the Game is Bailout – The Federal Reserve Creature
On the subject of bailout Griffin says: “…A primary objective of that cartel was to involve the federal government as an agent for shifting the inevitable losses from the owners of those banks to the taxpayers.”
How may times have your heard: “Too big to fail?” This is clear and simple centralized planning. It has nothing to do with true free enterprise known as Capitalism. And yet they try to use Capitalism as the scapegoat for the failures of the system that the government and the Fed created!
This is similar to the blaming Socrates for the failed Athens economy (he dared to speak up over the problems with the system). As the scapegoat he was forced to drink the poison hemlock.
In other words it is easier for the government and the Fed to blame others than to take responsibility for their actions—which are centralized, not free market capitalism.
It is fascinating and terribly sad how the truth has been twisted so profoundly to blame the very mechanism (Capitalism and free enterprise) that made this country great.
Will the Real Alan Greenspan Please Stand Up!
The Federal Reserve Creature
Alan Greenspan was chairman of the Federal Reserve board from 1987 until 2006. He was so called hero of the economy for many years. Now, many people (including myself) feel he has done the US a huge disservice.
To understand how much Greenspan has changed his position through the years; let’s start with an excellent article he wrote in 1967. It explains the importance of a commodity backed monetary system. This is before Greenspan was seduced to the dark side as the Federal Reserve Board Chairman.
Gold and Economic Freedom – Alan Greenspan
This was the good Alan Greenspan.
Now, lets take a look at Alan Greenspan after he was head of the Fed for two decades.
Below is a video of the Jon Stewart program in 1997 when he interviewed Alan Greenspan right after his new book was released: Age of Turbulence.
This is an enlightening video. Here are a couple of things to look for.
• When Jon Stewart notes that many people are free market capitalists and he asks Alan Greenspan if we have a free market system why do we need the Fed?
Greenspan notes that a central bank wasn’t needed when the US was on a gold standard back in the 19th century. He also notes that in the 1930s we were taken off the gold standard. Greenspan is wrong.
The Fed was formed in 1913. In the 1930s private citizens were stopped from having gold, but the US was still on a gold standard—up until 1971.
This begs the first question: According to Alan Greenspan’s own explanation, how can he justify the Fed from 1913 to 1971?
• Greenspan also notes that we are not a free market capitalist system to the extent that there is a central bank involved (think centralized planning) that is governing the amount of money in the system. As the Fed increases the money supply (which they continue to do—lately with zest), the
Jon Stewart Interview with Alan Greenspan
So this begs the second question is:
Why not reopen the debate for going back on the gold standard
(gold and silver)
, and eliminating the Fed?
“In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value.”
~ Alan Greenspan
Final Thoughts on the Federal Reserve Creature
This has been a thumbnail view of the insidious Federal Reserve Creature. For more information see:
The Creature from Jekyll Island : A Second Look at the Federal Reserve -- G. Edward Griffin #1
Where does money come from? Where does it go? Who makes it? This is the sordid story of the creature known as the Federal Reserve Bank (Fed) who are a bunch of money magicians.
You get a look into the bowels of the creature and learn all of its deep dark secrets. The book also covers all the economic mayhem the Fed has caused in the United States over the past hundred years.
“Warning!” You will probably never look at money the same way again if you read this book. This book “Knocks it out of the park!”
Thomas Jefferson's Warning To the United States
Federal Reserve Creature
"I believe that banking institutions are more dangerous to our liberties than standing armies.
If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered.
The issuing power should be taken from the banks and restored to the people, to whom it properly belongs." ~ Thomas Jefferson
Thomas Jefferson knew that if we got a Federal Reserve Creature, there would be major economic problems. He was right!
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