Excerpts From “The Creature from Jekyll Island,” Chapter 10
A book by E. Griffin exposing the origin and history of the Federal Reserve System

POWER TO COIN AND REGULATE MONEY

Our Founding Fathers insisted on placing the power to "create" money and the power to control it ONLY in the hands of the Federal Congress. They believed that ALL citizens should share in the profits of its "creation" and therefore the national government must be the ONLY creator of money. They wrote it out in the simple, but all-inclusive: "Congress shall have the Power to Coin Money and Regulate the Value Thereof."

HOW THE PEOPLE LOST CONTROL TO THE FEDERAL RESERVE

In December of 1913, Congress, with many members away for the Christmas holidays, passed what has since been known as the FEDERAL RESERVE ACT. (For the full story of how this infamous legislation was forced through our Congress, read Conquest or Consent, by W. B. Vennard). It simply authorized the establishment of a Federal Reserve Corporation, with a Board of Directors (The Federal Reserve Board) to run it, and the United States was divided into 12 Federal Reserve "Districts." This law completely removed from Congress the right to "create" money or to have any control over its "creation," and gave that function to the Federal Reserve Corporation. The people were not told then, and most still do not know today, that the Federal Reserve Corporation is a private corporation controlled by bankers and therefore is operated for the financial gain of the bankers over the people rather than for the good of the people. The word "Federal" was used only to deceive the people. The small group of "privileged" people who lend us "our" money have accrued to themselves all of the profits of printing our money - and more!

THEY PRINT IT - WE BORROW IT AND PAY THEM INTEREST

As an example of the Usury system – let’s say the Federal Government needs $1,000,000,000. Since it does not have the money, and Congress has given away its authority to "create" it, the Government must go the "creators" for the $1 billion. But, the Federal Reserve, a private corporation, doesn't just give its money away! The Bankers are willing to deliver $1,000,000,000 in money or credit to the Federal Government in exchange for the Government's agreement to pay it back - with interest! So Congress authorizes the Treasury Department to print $1,000,000,000 in U.S. Bonds, which are then delivered to the Federal Reserve Bankers. The Government has now indebted the people to the Bankers for $1 billion on which the people must pay interest!

Those United States Bonds have now become "assets" of the Banks in the Reserve System, which they then use as "reserves" to "create" more "credit" to lend. Current "reserve" requirements allow them to use that $1 billion in bonds to "create" as much as $15 billion in new "credit" to lend to States, Municipalities, to individuals and businesses.

Note from the editor:  When we read how the taxpayers have to pay for the Iraq war, or Social Security, or any number of government programs, and our President tells Congress that we need to raise money for this and that, most of us think that all that money comes out of the taxes we pay every year - Income Taxes.  Well, maybe some of it, but most of it is manufactured by the Fed.  The IRS, a division of the Fed, does not really need to tax us at all.  But they do so to keep us under their thumb.  (and by the way, the Federal taxes we pay are voluntary - we do not have to file)

AND THERE'S MORE

The Bankers who control the money at the top are able to approve or disapprove large loans to large and successful corporations to the extent that refusal of a loan will bring about a reduction in the price that that Corporation's stock sells for on the market. After depressing the price, the Bankers' agents buy large blocks of the stock, after which the sometimes multi-million dollar loan is approved, the stock rises, and is then sold for a profit. Using this method since 1913, the Bankers and their agents have purchased secret or open control of almost every large corporation in America. Using that control, they then force the corporations to borrow huge sums from their banks so that corporation earnings are siphoned off in the form of interest to the banks. This leaves little as actual "profits" which can be paid as dividends and explains why stock prices are so depressed, while the banks reap billions in interest from corporate loans.

THE BANKERS DEPRESSION OF THE 1930's

In 1930 America did not lack industrial capacity, fertile-farm land, skilled and willing workers or industrious farm families. It had an extensive and highly efficient transportation system in railroads, road networks, and inland and ocean waterways. Communications between regions and localities were the best in the world. No war had ravaged the cities or the countryside, no pestilence weakened the population, nor had famine stalked the land. The United States of America in 1930 lacked only one thing: an adequate supply of money to carry on trade and commerce. In the early 1930's, Bankers, the only source of new money and credit, deliberately refused loans to industries, stores and farms. Payments on existing loans were required however, and money rapidly disappeared from circulation. Goods were available to be purchased, jobs waiting to be done, but the lack of money brought the nation to a standstill. By this simple ploy America was put in a "depression" and the greedy Bankers took possession of hundreds of thousands of farms, homes, and business properties. The people were told, "times are hard," and "money is short."

MONEY FOR PEACE? NO! MONEY FOR WAR? YES!

World War II ended the "depression." The same Bankers who in the early 30's had no loans for peacetime houses, food and clothing, suddenly had unlimited billions to lend for Army barracks, K-rations and uniforms! A nation that in 1934 couldn't produce food for sale suddenly could produce bombs to send free to Germany and Japan! With the sudden increase in money, people were hired, farms sold their produce, factories went to two shifts, mines re-opened, and "The Great Depression" was over! The truth is the lack of money (caused by the Bankers) brought on the depression, and adequate money ended it.

THE INTEREST AMOUNT IS NEVER CREATED

The only way new money (which is not true money, but is "credit" representing a debt), goes into circulation in America is when it is borrowed from Bankers. When the State and people borrow large sums, we seem to prosper. However, the Bankers "create" only the amount of the principal of each loan, never the extra amount needed to pay the interest. Therefore, the new money never equals the new debt added. The amounts needed to pay the interest on loans are not "created," and therefore does not exist! Under this kind of a system, where new debt always exceeds the new money no matter how much or how little is borrowed, the total debt increasingly outstrips the amount of money available to pay the debt. The people can never, ever get out of debt!

IF $60,000 IS BORROWED, $255,931.20 MUST BE PAID BACK

When a citizen goes to a Banker to borrow $60,000 to purchase a home or a farm, the Bank clerk has the borrower agree to pay back the loan plus interest. At 14% interest for 30 years, the Borrower must agree to pay $710.92 per month for a total of $255,931.20. The clerk then requires the citizen to assign to the Banker the right of ownership of the property if the Borrower does not make the required payments. The Bank clerk then gives the Borrower a $60,000 check or a $60,000 deposit slip crediting the Borrower's checking account with $60,000. The Borrower then writes checks to the builder, subcontractors, etc., who in turn write checks. $60,000 of new "checkbook" money is thereby added to "money in circulation." However, and this is the fatal flaw in a usury system, the only new money created and put into circulation is the amount of the loan, $60,000. The money to pay the interest is NOT created, and therefore was NOT added to "money in circulation." Even so, this Borrower (and those who follow him in ownership of the property) must earn and TAKE OUT OF CIRCULATION $255,931, almost $200,000 MORE than he put IN CIRCULATION when he borrowed the original $60,000!

Since this has happened millions of times since 1913 (and continues today), you can see why America has gone from a prosperous, debt-free nation to a debt ridden nation where practically every home, farm and business is paying usury tribute to some Banker.

THE COST TO YOU? EVENTUALLY, EVERYTHING!

In 1910 the U.S. Federal debt was only $1 billion, or $12.40 per citizen. State and local debts were practically non-existent. By 1920, after only 6 years of Federal Reserve shenanigans, the Federal debt had jumped to $24 billion, or $226 per person. In 1960 the Federal debt reached $284 billion, or $1,575 per citizen and State and local debts were mushrooming. By 1981 the Federal debt passed $1 trillion and was growing exponentially as the Banker's tripled the interest rates. State and local debts are now MORE than the Federal, and with business and personal debts totaled over $6 trillion, 3 times the value of all land and buildings in America. If we signed over to the money-leaders all of America we would still owe them 2 more Americas (plus their usury, of course!)

YES, IT'S POLITICAL, TOO!

If Congress had been "creating," and spending or issuing into circulation the necessary increase in the money supply, THERE WOULD BE NO NATIONAL DEBT, and the over $4 Trillion of other debts would be practically non-existent. Since there would be no ORIGINAL cost of money except printing, and no CONTINUING costs such as interest, Federal taxes would be almost nil. Money, once in circulation, would remain there and go on serving its purpose as a medium of exchange for generation after generation and century after century, just as coins do now, with NO payments to the Bankers whatever!

All prices on all industry, trade and labor must be raised periodically to pay the ever-increasing usury charges. That is the ONLY cause of higher prices.

History tells us of debt-free and interest-free money issued by governments. The American colonies did it in the 1700's and their wealth soon rivaled England and brought restrictions from Parliament, which led to the Revolutionary War. Abraham Lincoln did it in 1863 to help finance the Civil War. He was later assassinated by an agent of the Rothschild Bank.

Editors Note:  John F. Kennedy tried to have the U.S. Treasury take back the power to create money from the Federal Reserve in 1963.  He signed new law that would implement the U.S. Treasury to print "U.S. Treasury Notes".  Kennedy was assasinated about one week after this action.

STABLE MONEY

Under the present debt-usury system, the extra burden of usury forces workers and businesses to demand more money for the work and goods to pay their ever increasing debts and taxes. This increase in prices and wages is called "inflation." Bankers, politicians and "economists" blame it on everything but the real cause, which is the usury levied on money and debt by the Bankers. This "inflation" benefits the money-lenders, since it wipes out savings of one generation so they cannot finance or help the next generation, who must then borrow from the money-lenders, and pay a large part of their life's labor to the usurer.

{The cost of living is increasing with our debt. No wonder the average household requires income from at least 2 jobs.}

AUDIT THE FEDERAL RESERVE SYSTEM?

The Federal Reserve has never been audited by the government since it took over our money and credit in 1913. In 1975 a bill, H.R. 4316, to require an audit was introduced in Congress. During the April, 1975 hearings, this author submitted a statement favoring the audit, as did many others. Due to pressure from the money controllers, it was not passed. No audit of the Fed has ever been made.

Excerpts From:   

Billions for the Bankers Debts for the People

The Real Story of the Money-Control Over America by Sheldon Emry

This study on money is not copyrighted. It may be reproduced in whole or in part for the purpose of helping the American people.

 How Banking Really Works: the Mandrake Mechanism

Our money today has no gold or silver behind it whatsoever.

In a booklet entitled Modern Money Mechanics, the Federal Reserve Bank of Chicago says: In the United States neither paper currency nor deposits have value as commodities.  Intrinsically, a dollar bill is just a piece of paper. Deposits are merely book entries.

With the knowledge that money in America is based on debt, it should not come as a surprise to learn that the Federal Reserve System is not the least interested in seeing a reduction in debt in this country, regardless of public utterances to the contrary.

THE DISCOUNT WINDOW

The Discount Window is merely bankers' language for the loan window. When banks run short of money, the Federal Reserve stands ready as the "bankers' bank" to lend it. When banks borrow from the Federal Reserve at one interest rate and lend it out at a higher rate, there is an obvious advantage. But that is merely the beginning. When a bank borrows a dollar from the Fed, it becomes a one-dollar reserve. Since the banks are required to keep reserves of only about ten per cent, they actually can loan up to nine dollars for each dollar borrowed.

Let's take a look at the math. Assume the bank receives $1 million from the Fed at a rate of 8%. The total annual cost, therefore, is $80,000 (.08 X $1,000,000). The bank treats the loan as a cash deposit, which means it becomes the basis for manufacturing an additional $9 million to be lent to its customers. If we assume that it lends that money at 11% interest, its gross return would be $990,000 (.11 X $9,000,000). Subtract from this the bank's cost of $80,000 plus an appropriate share of its overhead, and we have a net return of about $900,000. In other words, the bank borrows a million and can almost double it in one year. That's leverage! But don't forget the source of that leverage: the manufacture of another $9 million, which is added to the nation's money supply.

 More excerpts From “The Creature from Jekyll Island,” Chapter 10

  INFORMATION ABOUT CREDIT CARDS….

 "Credit" cards are promoted as a convenience and a great boon to trade. Actually, they are ingenious devices by which Bankers collect 2% to 5% of every retail sale from the seller and 18% interest from buyers.

 Usury Law and Contract Law are the major laws the credit card companies and banks are breaking. Usury Law states that no interest can be charged for a loan that never existed. The credit card companies never gave you a loan. If you think they did, ask yourself this question. Did your credit card company ever send you money for the amount of your credit card limit along with your credit card when you first got it?

Another law they are breaking is Contract Law. Contract Law states that when you sign an agreement or contract, you must be given full disclosure of what is about to happen, yet the credit card company or bank never told you how they were going to fund your credit card, did they? Since the bank or credit card company never told you any of this, the contract is null and void because you were mislead. You assumed that they were loaning you the money when in fact that is not true. It was in essence you, yourself, who gave yourself that loan. The bank only acts as a vehicle to make that happen for you.

Let’s say you filled out and signed an application for a credit card with a $5,000 limit. The moment that you signed the credit card or loan application, your signature became the value of that $5,000. In other words, under the federal banking laws, the piece of paper that you signed has now been monetized because of your signature. It is a promissory note stating that you will pay up to $5,000. That piece of paper is now worth the same amount as if you have $5,000 in cash money in your hands.

When the bank or credit card company receives your signed application, under federal banking laws, they are allowed to add $5,000 worth of assets into their bank accounts because your signed application that you just gave them is worth $5,000. At this point there is no real money that has changed hands, just a piece of paper they keep locked up somewhere, stating that you will pay up to $5,000 in the future.

Not only do the banks use your promissory note to fund your credit card they can also use your promissory note to create 9 times the amount of money to give out as loans up to the limit of your credit card. So for a $5,000 credit card, the banks are allowed to get $45,000. To explain - the bank uses your signature to get $5,000 from the Federal Reserve, which the Federal Reserve creates out of thin air, at a nominal interest rate – the interest rate they charge you for that $5,000 is a lot higher than they are paying on it. Then, under federal banking laws, the bank can get an additional $45,000 from the Federal Reserve, at the same nominal interest rate, to loan out at a higher interest rate to other customers. The $45,000 the bank is making additional money off of, is based on and because of your signature for the $5,000 credit card limit. Do you have access to that $45,000? Does the bank or credit card company thank you and send you any of the interest they make off of the $45,000 that you produced with your credit rating? Have you ever heard of a bank going out of business? Did you receive any money from when the credit card company sold your personal information to list companies?

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