Creature from Jekyll Island - A Second Look

History teaches us that war is often a fight for one thing, but the real cause is a hidden secret.

Nov 30, 2023

The money trust deliberately caused the 1907 money panic and thereby forced Congress to create a National Monetary Commission which led to the ultimate creation of the privately owned Federal Reserve Bank. The Federal Reserve Act establishes the most gigantic monetary trust on earth. When the President signs the bill, the invisible government of the Monetary Powers will be legalized. The people must make a declaration of independence to relieve themselves from the Monetary Powers, by taking control of Congress!... The worst legislative crime of the ages is perpetrated by this banking bill. The caucus and the party bosses have again operated and prevented the people from getting the benefit of their own government!
Charles A. Lindbergh, Sr.

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Words: 4,493 ~ Read time: 18 min

Foreword

Welcome to an updated and expanded version of my essay from July 17, 2020, discussing the significance of the Federal Reserve. Enjoy!

Executive Summary

Good as Gold: In this part, we learn that the Constitutional Convention took away Congress’s power to print money. They did this by removing the phrase “and emit bills of credit of the United States” from the Constitution. The Federal Reserve began in 1913, which decreased Congress’s control over currency regulation. By studying history, we can see how fiat currency can cause problems. The Constitution required a solid currency to avoid economic issues and help the country grow. The framers wanted the government to have less control over money. They also wanted people to be able to own precious metals. Andrew Jackson supported the founders’ idea of using metal for currency instead of paper.

The Creature: Here, we tell the story of a secret meeting on Jekyll Island in 1910. A group of influential people got together and made a plan for creating the Federal Reserve. They aimed to create a central bank to safeguard their wealth and influence lending more significantly. Recognizing public aversion to central banks, these financiers orchestrated a deceptive strategy. In 1913, Congress passed a law called the Federal Reserve Act. This law created twelve private corporations that make up the Federal Reserve. Private banks own the Federal Reserve and exist to make a profit. The Act granted the Federal Reserve the authority to issue unbacked “Federal Reserve Notes” as legal tender. The section also sheds light on the illusion of the Federal Reserve’s governance structure.

Analysis: This text challenges our understanding of inflation. It says that inflation is like a hidden tax because it happens when there is too much money and credit. That makes the dollar worth less over time. Fiat currency and fractional banking affect the money supply. Politicians are afraid to increase taxes, so they borrow more money instead. That creates more significant deficits and adds to the national debt. A stinging text criticizes how the government uses Social Security funds. It also warns about the hidden inflation tax, which affects retirees and people with fixed incomes. We review a cashless monetary system where money only exists in electronic form. The “New Normal” raises concerns about people losing control of their money and its implications.

Solution: A glimmer of hope shines through by promoting economic stability with good money. This approach has many advantages. It prevents inflation, debt, and interest payments. It also encourages saving, investing, production, and trade. A strong currency reduces government control and helps countries work together for peace. The argument stresses that stable money limits government power and enhances individual freedom. It also protects true diversity, creativity, and innovation in society. The proposal suggests using the Bank of North Dakota as a model. This section also recommends getting rid of the Federal Reserve.

Introduction

History teaches us that war is often a fight for one thing, but the real cause is a hidden secret: money. The new war has different fronts. They are Covid-1984, riots, population reduction (abortion), climate change, diversity-inclusion-equity-accessiblity (DIE-Ea?), and reparations. And, of course, there are the proxy wars of Ukraine and Gaza. They all have one thing in common—the almighty dollar.

The inspiration for this essay is the book The Creature from Jekyll Island: A Second Look at the Federal Reserve by G. Edward Griffin. This fascinating work takes you through a journey about money from the beginning of organized society to today. The Creature explains the origins of currency, from bartering precious metals to today’s fiat (worthless) money. The critical historical theme is the banking cartel called the Federal Reserve. The elite conceived the Federal Reserve at Jekyll Island, Georgia, in 1910. If you go on this journey, you can learn about programs that make people rich through schemes like alchemy. Written long before Enron and the Enron-like scandals, this book explains the Ponzi schemes that make up the monetary system.

Good as Gold

The Constitutional Convention denied Congress the power to print paper money. We can be sure of this because the original draft of Article I, Section 8 included the words “and emit bills of credit of the United States.” ”1 “Bills of credit” were understood to mean “paper money.” ”2 James Madison’s record of the Convention states: “This was a favorable moment to shut and bar the door against paper money.” The Founders rejected the phrase and struck it from the Constitution by an overwhelming vote.

Later, during debates about Article I, Section 10, the Founders further barred the creation of paper money. The original draft wording reads, “No State shall ... coin Money ...” Madison’s account here is brief: “Mr. Wilson and Mr. Sherman moved to insert after the words’ coin money’ the words ‘nor emit bills of credit, nor make anything but gold and silver coin a tender in payment of debts’ making these prohibitions absolute ...” The Creation of the Federal Reserve in 1913 “fixed” that problem as that is the year that Congress gave away its duty to regulate sound money.

As Jefferson said, every county abused paper money (where used). Before the adoption of the Constitution, the Continental Congress issued bills of credit. These were only paper money with no backing (fiat currency). The inflated fiat paper currency imposed a cruel hidden tax on the citizens, as in all other countries, and they lost their fortunes. “Not worth a Continental” describes the dollar in 1779, which was worth only a penny. Thomas Jefferson said, “Paper is liable to be abused, has been, is, and forever will be abused, in every country which it is permitted.”

A further reason for the Founders’ action was their desire to restrain the state governments from flooding the country with fiat paper money. Some states were already issuing bills of credit. Rhode Island even forced its circulation by attempting to punish citizens for refusing to use it. Josiah Quincy wrote to George Washington, “… there never was a paper pound, a paper dollar, or a paper promise of any kind that ever yet obtained (became) a general currency but by force or fraud, generally by both.”

Inflation, deflation, and depression brought misery to the new nation, prompting Washington to write: “Good God! Who could have foreseen or predicted the disorders which have arisen in these states!” (1787 letter to General Knox). At this point, the Constitutional Convention convened in Philadelphia. Those who had experienced such trauma wanted to restrain their government from issuing paper money and forcing it into circulation.

On August 16, 1787, the delegates approved Section 8 of the Constitution, barring Congress from the right to print paper money. On August 18, they framed Section 10, stopping the “friends of paper money” from going through the State legislature. Soon after adopting these two Articles, the tide turned, and the nation began to prosper. Its economic ills started to disappear, and the leaders rejoiced. In 1790, George Washington said:

“[revenues] were considerably more productive than it was imagined they would be ... spirit of enterprise prevails . . . our public credit stands on that high ground which three years ago it would have been considered ... madness to have foretold ... the United States enjoys a sense of prosperity and tranquility under the new government that could hardly have been hoped for.”

On December 16, 1789, The Pennsylvania Gazette declared:

“Since the federal Constitution has removed all danger of our having a paper tender, our trade is advanced fifty percent. Our ... people can trust their cash... and have brought their coin into circulation.”

The Constitutional mandate for a sound currency prevented an economic depression and resulted in prosperity and progress. The new ruling stated that the government could not manipulate the money. It required a coin that had intrinsic value for the citizens. The Constitution protected the individual’s right to own precious metals and use them as a medium of exchange. The results were terrific even to Mr. Washington. Andrew Jackson, in his 8th Annual Message to Congress in 1836, made this salient declaration:

“It is apparent from the whole context of the Constitution as well as the history of the time which gave birth to it, that it was the purpose of the Convention to establish a currency consisting of the precious metals. These were adopted by a permanent rule excluding the use of a perishable medium of exchange... or the still more pernicious expedient of paper currency.”

The Creature

The Secret Meeting on Jekyll Island

In 1910, a group of individuals met secretly on Jekyll Island off the coast of Georgia and created the Federal Reserve. Under the cover of a “duck hunting trip,” the attendees included:

Nelson Aldrich ~ Republican senator from Rhode Island and the chairman of the National Monetary Commission, a congressional body tasked with proposing reforms to the banking system.
A. Piatt Andrew ~ assistant secretary of the Treasury and a former professor of economics at Harvard University. He was also a member of the National Monetary Commission and an expert on banking and currency issues.
Henry Davison ~ a senior partner at J.P. Morgan & Co., one of the world’s largest and most influential banks.
Arthur Shelton ~ secretary and aide to Senator Aldrich and a former journalist.
Frank Vanderlip ~ president of the National City Bank of New York, was then the country’s largest bank.
Paul Warburg ~ partner at Kuhn, Loeb & Co., a prominent investment bank with ties to European financiers. He was also a leading advocate for a central bank in the United States.

The above “duck hunters” represented some of the most powerful financial interests in the world. They aimed to create a central bank to serve their interests and protect them from competition and regulation. They also wanted to have the ability to make money out of nothing and lend it at interest to the government and the public.

They kept the meeting secret. The participants knew the American people were against a central bank. The people had seen the failures and corruption of past attempts, such as The First Bank of the U.S. and The Second Bank of the U.S. The participants had to trick Congress and the public into thinking the Federal Reserve was public and would help the economy. After a campaign by bankers and their allies, three years later, in 1913, Congress passed the Federal Reserve Act. The Act created the Federal Reserve System.

Twelve private corporations make up the Federal Reserve. Private banks own these corporations. These banks operate for profit. Entities and individuals own and control the regulatory system as a “regulator.” The Act gave the Federal Reserve power to issue “Federal Reserve Notes.” These notes have no backing, but people accept them as legal tender.

The Federal Reserve Act established a board in Washington, D.C. Its job was to supervise 12 Reserve Banks. At first, the Board had seven members. The Secretary of the Treasury and the Comptroller of the Currency were part of it. The President of the United States appointed the other five members, and the Senate confirmed their appointments. That includes the Chair, the Vice Chair, and five other Governors appointed by the President of the United States and approved by the Senate. The Secretary of the Treasury and the Comptroller of the Currency serve ex officio. Click here to meet the current slate of officers.

But as demonstrated by this quote in Griffin’s book, “appointments” are nothing but smoke and mirrors:

It must not be felt that these heads of the world’s chief central banks were themselves substantive powers in world finance. They were not. Rather, they were the technicians and agents of the dominant investment bankers of their own countries, who had raised them up and were perfectly capable of throwing them down. The substantive financial powers of the world were in the hands of these investment bankers (also called “international” or “merchant” bankers) who remained largely behind the scenes in their own unincorporated private banks. These formed a system of international cooperation and national dominance which was more private, more powerful, and more secret than that of their agents in the central banks.3

The Fiat Money System and the Mandrake Mechanism

The Federal Reserve operates as a fiat money system, meaning it creates money out of nothing without any intrinsic value or limit. This system goes against the natural laws of money. These laws rely on something real and limited, like gold or silver, supporting stable money. The Federal Reserve creates money and loans it to the government and the public with interest. This “Mandrake Mechanism” works as follows:

The government spends more than it collects in taxes and borrows the difference from the public or foreign governments.
The government sells bonds to the Federal Reserve if there aren’t enough lenders offering low-interest rates. The Federal Reserve pays for them using created money.
The Federal Reserve then sells these bonds to its member banks or other central banks worldwide, creating more money.
The banks take these bonds and use them as reserves. They can then create more money through fractional reserve banking. That allows them to lend out more money than they have.
The money supply increases significantly, causing inflation, debt, interest payments, and economic problems.

Banks and the U.S. Treasury have reserves. These reserves are electronic digits in their computerized accounting systems, called general ledgers. Federal Reserve Banks do not hold physical money or reserves, as they can create the necessary funds. Federal Reserve Banks create reserves to get assets and cover expenses. They use a keyboard to input commands.

The Consequences of Fiat Money

Fiat money has negative consequences for society, such as:

Inflation: Fiat money causes inflation, a hidden tax on everyone who uses money. Inflation erodes the purchasing power of money over time, making people poorer and reducing their standard of living. Inflation makes people less likely to save or invest and encourages spending and gambling instead. It also leads to economic ups and downs.
War: Fiat money enables war, which is profitable for bankers and politicians but destructive for humanity. Governments must engage in massive spending during wartime, which they can only finance by creating more money out of nothing. War also creates more debt, more inflation, more taxes, and more control over people’s lives.
Fiat money can lead to totalitarianism. Totalitarianism is when a central authority controls everything. Fiat money gives governments much power and control without any accountability. That helps totalitarianism to grow. Totalitarianism controls people’s behavior and thoughts through propaganda, censorship, surveillance, and coercion.
Canceled People. According to reports, the Social Security Administration (SSA) says (by mistake) around 1,000 people are dead every month. Rectifying this “minor mistake” can be lengthy, lasting for months. Being declared deceased by the SSA has significant repercussions. That includes the inability to access credit and getting locked out of bank accounts. Those without physical money (most people) rely on the support of compassionate and generous family and friends.

Analysis

A few years ago, in early 2020, we read that the economy was up, crime was down, and inflation was “flat.” If one could consume computers for nourishment, inflation would indeed be flat. Inflation is a misunderstood term regardless of whether the administration or Congress is in power. The economy was up - the economy of nothing (no material wealth but inflated Ponzi schemes like Enron). Call our system the “Seinfeld economy, the economy about nothing.”

The fundamental reality of inflation is that it is a hidden tax. It is the result of the increase in the supply of money and credit. In 1913, $100 could buy what $3,107.79 can purchase today. That’s $3,007.79 more in 110 years. An average annual inflation rate of 3.17% from 1913 to the present has fueled this growth, resulting in a cumulative price surge of 3,007.79%.4

Another salient point is that inflation has nothing to do with supply and demand (rising wages and prices). Here are the signs of the harmful impact of injecting money into the economy without support. Our money is fiat currency, which relies on people’s trust.

Some will defend this system by saying there is some gold. There is a micro amount of gold in “fractional” banking—the method where money starts with some backing. The banks can take an initial amount of money and then loan out large quantities of new money based on the original amount. The banks have only a fraction of the money “in the vault” in reserve for this new money, henceforth “fractional banking.” The remaining currency will drop when the money supply floods with new fractional or close-to-fiat notes. As a result of this “watered-down” money, businesses need to raise prices to get the required value for their services or products. Workers want increased wages to compensate for the money that buys less food and other essentials.

The banking elite says our money has support via the “faith in the nation” to counter real money backed with precious metals. The establishment will rarely talk about the notion of fiat money. The establishment demonizes important people who speak of fiat currency. Former congressman Ron Paul (Texas) is an example of a person of consequence who faced demonization for discussing this issue. While the current system may seem to place the brakes on rampant inflation, fiat money will cause the bubble to burst completely. The bankrupt notion of claiming “backed” money will no longer work. The driving force of fiat money is out-of-control federal spending and manipulation of the amount of money in circulation.

Furthermore, as the government initiates more unnecessary programs, it will spend more than its income. Politicians are reluctant to raise taxes. “Borrowed” funds will pay for the deficits. The deficit was less than one trillion before 1980. Today, it’s over thirty trillion and counting! As a result, the daily interest on the debt is one billion dollars.

The government often “makes” money by selling treasury bonds to private banks. The banks then resell these bonds to the Federal Reserve. The Federal Reserve issues printed paper money or bank credit to pay for the bonds with this transparent operation. It reminds me of the great movie starring George C. Scott – The Flim-Flam Man.

The government counters the national debt by borrowing from the Social Security “trust funds.” The payroll taxes currently exceed the amount necessary to pay benefits. The government “borrows” this payroll-tax surplus and then spends it as part of the general budget. This unique operation has evaporated over one trillion dollars in Social Security trust fund surplus. We have all heard about taxation without representation. Inflation is worse because it is a hidden tax—very few know that this legal plunder occurs. No wonder it is so popular with the politicians and the banking elite. It is cruel as it punishes those who can least afford it. That includes retirees, people on fixed incomes, and those who work hard to remain self-sufficient. Is our money as “good as gold?”

Surprisingly, hyperinflation has yet to happen. Our money has no backing of gold and isn’t the global oil exchange currency. Considering this, consider the government’s program of locking up large land areas. It seems harmless and done for development, conservation, or security.5 There may be another story before us - safeguarding the country’s money by securing these lands.

Let’s contemplate the implications of the “New Normal” in a cashless monetary system where physical money is nonexistent. As mentioned, all money would only be electronic, shown as numbers in a bank’s computer system. So, individuals would lack direct access to or control over their money. What potential issues could arise in this scenario?

Solution

To restore economic stability, we need sound money. Sound money prevents inflation, debt, interest payments, and economic distortions. Sound money also encourages saving, investing, production, and trade.

To encourage peace, use a steady currency. That limits the government’s power to start wars and lessens violence, death, and destruction. Sound money would foster cooperation, diplomacy, and mutual respect among nations.

Sound money limits government power, increasing individual liberty and responsibility and protecting freedom. Sound money fosters diversity, creativity, and innovation in society.

Getting rid of the Federal Reserve may not be simple or painless, but it’s necessary and reasonable in the long run. The Federal Reserve Acts are statutory laws rather than Constitutional Amendments. We must repeal the Operational Acts and all their amendments to eliminate the Federal Reserve.

One model to consider as a replacement for the Federal Reserve is The Bank of North Dakota (BND). It is a unique institution in the United States. It is the only state-owned bank in the country and operates as a public corporation that serves the state’s and its citizens’ interests. The Nonpartisan League, a populist (uh oh!) organization, established the BND in 1919. The League wanted the government to help important industries like banking, milling, and farming. The BND helps North Dakota with agriculture, business, and industry and gives financial services to governments and people.

The BND offers a variety of products and services, such as checking and savings accounts, loans, investments, and bonds. The BND works with local banks and credit unions to help small businesses, students, homeowners, and farmers get loans. The BND is essential for the state’s economy. It funds infrastructure projects, disaster relief, renewable energy, and more. The BND also manages the state’s Legacy Fund, a sovereign wealth fund that receives a part of the state’s oil and gas tax revenues.

The Industrial Commission of North Dakota controls the BND. The governor, the attorney general, and the agriculture commissioner make up the commission. The BND is also subject to legislative oversight and audits by independent firms. The BND is very transparent and accountable. It shares annual reports and financial statements on its website. The BND has been profitable and earned a reputation as a well-managed and innovative institution. They want to solve financial system challenges and help the public.

BND is not a member of the Federal Reserve System. But, it does have an account with the Federal Reserve Bank. BND would do fine if the Fed vanished. The Federal Deposit Insurance Corporation does not insure deposits in the bank. Instead, the general fund of the state of North Dakota and the taxpayers of the state guarantee the deposits.

Conclusion

In 2020, we faced a money-making-creating pandemic and a Marxist insurrection. Meanwhile, new money went to the world to fend off the crash. The plain truth suggests you get ready; the system will collapse under massive debt. It does not matter what candidate gets “voted” in. Under this flake system, the debt will multiply for thousands of years.

By March 2022, U.S. government debt surpassed $30 trillion.‎ It took 200 years to accumulate the first $1 trillion in debt. In two months, Washington added another $1 trillion to its deficit. This type of spending is parabolic and erodes your savings every day. Yet, according to President Biden, when the government prints or borrows trillions of dollars, the dollar’s value doesn’t decline. The Inflation Reduction Act seems like an intelligent move to outperform the Flim Flam Man and challenge his financial skills.

The U.S. government offers an investment opportunity to the public that needs more support from a for-profit company. The government sells top-rated bonds, but it’s like a giant Ponzi scheme. Today, we have over $33 trillion in debt and cannot sustain it.

Picture a situation where our government, alone or with others, declares a total financial reset. They refuse to pay bond obligations or borrow more money. Who stands to suffer? That impacts investors, especially those with enough money and institutional investors. It would also affect service providers who lend money to the government. Even if the stock market decreases, people could lose money on their investments and interest.

Regardless, a crash will inevitably occur. We already see the oligarchs ushering in corporate socialism in a fast-paced march. Get ready, stock up on nonperishable food, and get real cash.6 We are in the middle of a Marxist insurrection spawned in education and academia. Defund academia!

Dopey big businesses who project diversity-inclusion-equity-accessibility (DIE-Ea?) under environmental, social, and corporate governance (ESG) rubrics can go pound sand. The leaders of these crummy Marxist-crony capitalist fusion matrix monsters fed by the Fed willfully order the killing of entrepreneurship. Thus, they are simply WOKE.

While it may seem futile, we must write our “leaders” to let them know they must stop the insanity.

Parting Shot

For cryptocurrency enthusiasts, I’m not convinced. Fancy computer algorithms “mine numbers,” creating these “monies.” It has no intrinsic backing whatsoever. Hot air belching from mainframe computers soaks up vast energy to make crypto. Thus, those who adore cryptocurrency and show off their electric cars may be a tad hypocritical. I expect hate mail. 📕

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