by Jane H. Ingraham
Vol 10, Number 18, September 5, 1994
money come from? Where does it go? Who makes it? The
money magicians’ secrets are unveiled. We get a close
look at their mirrors and smoke machines, their pulleys,
cogs, and wheels that create the grand illusion called
money. A dry and boring subject? Just wait! You’ll be
hooked in five minutes. Reads like a detective story —
which it really is. But it’s all true. This book is
about the most blatant scam of all history. It’s
all here: the cause of wars, boom-bust cycles,
inflation, depression, prosperity. Creature from
Jekyll Island will change the way you view the
world, politics, and money. Your world view will
definitely change. You’ll never trust a politician again
— or a banker.
Has it ever occurred to you that the federal government has no
need of taxes for revenue? Are you aware that banks prefer
lending to governments because governments seldom repay loans? Do
you realize that if all debts, both public and private, were paid,
there would be no money at all in circulation?
are only a few of the startling facts that fill the pages of this
illuminating expose of the Insider scam called The Federal
Reserve System (Fed). Although author G.
Edward Griffin admits to having wondered if another book on the Federal Reserve is necessary (his six pages of
bibliography suggest that the subject may have previously attracted
attention), it is unlikely that any book has ranged across 2,000
years of money and banking from Diocletian to the
Rothschilds to Alan
Greenspan — and tied it into the new world order — as thoroughly
The Creature From Jekyll Island.
Griffin cuts through the obscurities about the Fed
that are intentionally meant to mystify and disarm its victims (all
of us). Convinced that the subject of money and banking is too
arcane and complicated to understand, we victims are trapped in a
world view that utterly fails to jibe with reality. The money
manipulators, says Griffin, are exploiting our ignorance for
the advancement of their own appalling plans; the urgency of
awakening us to our danger has driven Griffin to write this
Although Griffin has never held an academic position, he is a
top-notch teacher. Making this little-understood subject simple by
splendid organization, his account is divided into six sections with
varying numbers of chapters; each section and chapter is introduced
by a concise paragraph while each chapter is also summarized. Thus
the reader is kept in touch with where he has been and where he is
going, an ingenious and helpful device considering the enormous
scope of Griffin’s narrative.
His explanations and definitions are meticulously worded; one can
sense the care with which each word was chosen, leaving no room for
confusion. Griffin continually draws documentation from
primary sources, quoting letters, speeches, and published works that
both enlighten and horrify. His own writing is difficult to quote;
it is so trenchant that nearly every sentence entices. Yet at the
same time Griffin has mastered the art of speaking personally
to the reader, who never loses the feeling of being directly
All this adds up to a superbly clear, engrossing book
that, once started, is impossible to put down.
Setting the Stage
In order to help us fully understand our present
predicament, Mr. Griffin ranges far afield in explaining the
historical, economic, and political antecedents of today’s money
system. We are given a crash course on the nature of money; the
origin of banks and the concept of fractional reserves; how this led
to the seductive idea of using the same money over and over;
how this inevitably led to economic disaster wherever
and whenever tried.
We are instructed about the Rothschild
formula, which perfected the art of making enormous profits
from loans to governments, especially for wars; how this led to
preventing any one nation from becoming strong enough to establish
peace (the famous balance of power); how those who could
instigate wars or revolutions were financed (including the
Bolsheviks in 1917); how we Americans were sucked into World
War I in order to save J.P. Morgan’s loans to England;
how environmentalism is now the weapon of choice replacing war.
We are taken to the super-secret meeting of Insider financiers
Rothschild agent Paul
Warburg on Jekyll Island in 1910 where the basic plan for
what became the Federal Reserve Act was formulated; we
learn that these plotters were already affiliated with the
conspiratorial British one world
Round Table group
which preceded the
Council on Foreign Relations
secret government); we are
astounded by the brazen deception of Congress that pushed through
this unconstitutional act creating the Insiders’ fundamental tool —
a central bank with the ability to inflate.
We are told how this
same tool has been expanded internationally through the
International Monetary Fund (IMF) and
World Bank in order to create worldwide inflation,
pay enormous sums of perpetual interest on never paid-up loans to
Insider banks, and socialize the Third World, all
courtesy of us unsuspecting taxpayers.
Lastly, Griffin foretells our
dismaying fate if our course is not altered; then he lays out a
step-by-step procedure of how to alter it, inviting us to join with
him in doing so. Griffin looks the Fed “creature”
straight in the eye and tells us it is not federal, it has no
reserves, and it is not a bank. It is, in fact, a pernicious
cartel operating against the public interest. The widespread
belief that the Federal Reserve exists to “stabilize
the economy” is hogwash; the real reason for its existence is the
making of money — not out of “thin air” as is commonly supposed,
but, more accurately, out of debt.
it is the act
of borrowing by the federal government that causes money to
spring into existence
Griffin takes us through the Open Market steps by which Treasury IOUs
(bonds) are inverted by the Federal Reserve into money
through the issuance of Federal Reserve checks with no
money in existence to cover them; anyone else doing this would go to
jail. Congress has made this legal for the Fed,
however, because this hidden process allows our congressmen to enjoy
unlimited revenue without having to visibly raise taxes.
this service, says Griffin, the monetary/political
partnership would dissolve, and Congress would abolish the Fed.
Griffin explains that these Federal Reserve checks
are endorsed by the government, deposited in a Federal Reserve
bank, and used to pay government expenses by checks which
create the first wave of fiat (unbacked paper)
money that floods into the economy. Recipients deposit these
checks into commercial banks that are part of the Fed system. Here
is where the real inflationary action is. (The Federal Reserve
holds “only” seven percent of the national debt of almost $5
trillion. The 12 percent held by foreigners and the 56 percent held
by Americans are not inflationary because the money used for
purchase already existed.)
Commercial banks, like the Federal Reserve, also
create money out of nothing — and collect interest on it — by
multiplying every dollar deposited nine times. This amazing feat is
accomplished through the device of fractional reserves, whereby the Fed allows 90 percent of deposits to be loaned out.
As deposits become loans and loans become deposits, this process
repeats with smaller numbers each time around.
For instance, $1
million in government money (first wave) to $900,000 (second wave),
which gives birth to $810,000 (third wave), etc., until the process
plays itself out. Thus, the banking cartel creates an
amount of money that is nine times the amount of the original
government debt that made the process possible.
Griffin shows that when the original debt is added in,
the Federal Reserve and the commercial banks together have
created approximately ten times the amount of the underlying
government debt. Since this newly created money causes the
purchasing power of all money to decline, the resulting rise in
prices is, in reality, a hidden tax.
As Griffin puts it:
Without realizing it, Americans have
paid over the years, in addition to their federal income taxes
and excise taxes, a completely hidden tax equal to approximately
ten times the national debt!
Griffin is astonished at the
public’s indifference to this fleecing; he blames it on ignorance
based on disinformation. Nothing could prove him more right
than the current deception that inflation is higher prices caused by
full employment and a strong economy; therefore, letting the "steam"
out of the economy and slowing growth (and thereby employment) is
“good.” This talk is madness.
Alan Greenspan, chairman of the
Federal Reserve (who has the temerity to say he is “worried
about inflation”), is repeating this claptrap as he pretends to
control inflation by increasing interest rates that merely
devastated the bond market, clobbered the stock market, and
helped only the bankers. Thus the Insiders are
perfectly protected and the scam rolls on.
There are many more threads to Griffin’s discourse on the
operations of the banking cartel that should not be
missed, such as:
How holders of Treasury bonds
can be paid off only by the creation of an identical bond
out of nothing.
Why the U.S. has to be, must
be, in debt.
How the Discount Window (Fed
loans to banks) creates more phony money.
How the federal government could
operate without levying any taxes whatsoever.
How the Fed causes
booms and busts.
How, since 1913, our money has
depreciated by over 1,000 percent.
How a gold standard
automatically stabilizes prices.
How the Fed can
now monetize the debts of foreign governments!
Without the extensive knowledge
offered by Griffin, no American can fully understand
the financial reality of our time.
Understanding the Game
Also critical to our reality check is an understanding of how
the Fed protects and enriches the banking brotherhood in the
international arena. The game our Insiders are playing
makes the Rothschilds look like novices.
Here it is in a
The game starts with a mammoth loan
(created out of nothing through the magic of fractional
reserves) from (Citicorp, Chase Manhattan,
Bank of America, etc.) to a Third World country
with scant means of servicing the debt much less ever repaying
the principle. Are these top bankers stupid?
Hardly; Griffin explains that
this is the kind of loan these bankers love, since they make
their money from interest on the loan, not on repayment of
the loan. They prefer the loan never to be repaid.
They know they can’t lose because the Federal Reserve guarantees that massive loans
that go into default will not be allowed to seriously affect the
issuing bank (too big to fail) because this would “disrupt
the entire economy."
So, says Griffin,
"since the System
makes it profitable for banks to make large, unsound loans,
that is the kind of loans banks will make. Furthermore, it is
predictable that most unsound loans will go into default."
Sure enough; pretty soon default
threatens. The bank creates additional money out of nothing
and lends that so its interest stream continues on both the original
loan plus the new loan (the “roll-over” play). At the next crisis,
the bank creates still more money out of nothing to cover the
interest on both loans plus an additional amount for the borrower to
spend freely (the “up-the-ante” play). Finally the bank
agrees to a lower interest rate and a longer period for repayment
(the "rescheduling" play). Eventually it is time for the “Final
Maneuver.” Congress agrees to guarantee future payments and the
whole mess is shifted to the backs of U.S. taxpayers while the
borrower is trapped into an IMF “austerity”
program that makes an “end run” around his
Now money moves through various foreign aid channels to the deadbeat
borrower, who continues to pay perpetual interest to the bank.
Almost all of this money is generated by the Federal Reserve;
as it moves out into the economy it dilutes the value of the money
already there. The American people, says Griffin, have no
idea they are footing the bill to enrich the Insider bankers.
Founder’ Fears Realized
Readers may be surprised to learn that the Federal
Reserve is the fourth central bank the United States has
had, the previous three having crashed in inevitable raging
inflation and widespread economic disaster. So clearly did our
Founders understand and fear worthless paper money forced on
the public by legal tender laws (precisely what we now have) that
they filled the proceedings of the Constitutional Convention with
statements of their horror of it.
We Americans today, deprived of
hearing such truth, need to listen to their words:
George Mason of Virginia: “I
have a mortal hatred of paper money.”
John Langdon of New
Hampshire: “I would rather reject the whole [Constitution] than
grant the new government the right to issue fiat money."
George Reed of Delaware: “The
right to issue fiat money would be as alarming as the mark of
the beast in Revelation."
Thomas Paine: “The punishment
of a member of Congress who should move for such a law ought to
Griffin does not stop with
presenting the known picture, but projects today’s reality into the
future. His first projection is a doomsday scenario his second is a
realistic plan for saving our country and ourselves. These chapters
might, after all, be the most important ones in the book.
Griffin sees doomsday as an engineered
financial debacle the severity of which will cause panicked
Americans to welcome — a World Bank "rescue"
with a world currency. The IMF/World Bank is already
functioning — in conjunction with the Federal Reserve
— as a world central bank. A world currency is already
designed, awaiting a crisis to justify its introduction.
point on, writes Griffin, there will be no escape from
the new world order. At
present the U.S. is being deliberately weakened by seemingly insane
spending both at home and abroad: As just one more dismaying
example, during President Clinton’s recent trip to Europe he
blithely promised more billions of dollars to Poland, Ukraine, and
the Baltic countries.
The name of the game is to spend on
anything, anywhere. The object is to bring down the
Life in the New World Order
What will life be like in the Insiders’ new world order?
Griffin spells it out from the words of the Insiders
themselves. One source is the 1966 secret Hudson Institute
study commissioned by Defense Secretary Robert McNamara,
Report from Iron Mountain.
This study cold-bloodedly discusses various means by which
government might control the populace and perpetuate itself in
power in the absence of war (UN peace).
Griffin’s review (with extensive quotes) of this truly
diabolical Insider study is masterful; he takes it apart and shows
us its consummate evil. The study’s premise is that historically the
only means by which a government has ever been able to "secure the
subordination of citizens to the state" is war.
Only war has been
able to provide the external threat without which no government
can accumulate power
War is used to make the
masses put up with all kinds of privation, taxation, and controls
without complaint. No amount of sacrifice in the name of victory is
rejected. Resistance is viewed as treason.
But, says Griffin, Report From Iron Mountain
explains that the war system may have to be replaced because,
"it may now be possible to
create a world government
in which all nations will be disarmed and disciplined by a world
army, a condition which we will call peace."
In this case, what could be a substitute
Here, explains Griffin, is the origin of the stratagem to
promote ecological doom as the new enemy that threatens the entire
world. The threat need not be real, provided the masses can be
convinced it is real. Credibility is the key, not reality.
Griffin writes that
Report From Iron Mountain
explains the avalanche of phony scientific claims that are
uncritically publicized by the Insider-controlled media, as well as
the funding of environmental "crazies" by corporations and
businesses that would appear to have the most to lose. He sees the
plan as being brilliantly successful.
The barrage of propaganda has had a phenomenal result. Politicians
are now being elected on nothing but "concern for the environment
and a promise to clamp down on nasty industries," with no one caring
about the damage done to the economy or our freedoms. Just as no
sacrifice is too great in time of war, what happens to the
economy or our freedom is of no consequence "when the very
planet on which we live is sick and dying."
Griffin introduces us to multi-millionaire Maurice Strong,
the powerful UN environmental czar, who gives us the
The U.S. is committing
environmental aggression against the rest of the world.
Current lifestyles of the affluent middle class — high meat
intake, frozen and convenience foods, electric household
appliances, cars, air conditioning, suburban housing — all this
has to go. The world’s ecosystems can be preserved only by
lowering our standard of living by rationing, taxation, and
political domination by world government.
Reading this section will forever change
the way in which you view government. Yet, says Griffin, this
perverted, power-mad Insider fix need not prevail. None of these
dreadful things needs to happen. He outlines a procedure by which
the Federal Reserve can be abolished, the
national debt paid, and the country returned to a sound monetary
system based on silver and gold.
All that is needed
are the efforts of concerned and caring Americans. Griffin
invites us to join him in freeing ourselves from the
one-world conspirators. It
can be done.