Creature from Jekyll Island 4 of 12

A Second Look at the Federal Reserve

Category:

Education

Tags:

• Federal
• Reserve
• G.
• Edward
• Griffin
• Jekyll
• Island

[kg6dgv]

Yeah, I would also but they got a Monopoly

[louis12346]

I predict future happiness for Americans if they can prevent the government from wasting the labors of the people under the pretense of taking care of them.

The strongest reason for the people to retain the right to bear arms is, as a last resort, to protect themselves against tyranny in government

All tyranny needs to gain a foothold is for people of good conscience to = remain silent.

The beauty of the second amendment is that it will not be needed until they try to take it. Jefferson

[myyootube]

His explanation is 100% correct! Research "Fractional Reserve System" or watch Zeitgeist.

[scobbler1976]

We're not talking about European Governments taking over other nations; we are witnessing the wages of 'private' warfare in the guise of National Security and Democracy; a wealthy man looking to take from the poor man just beacuse he can.

[libertylady76]

@jimmyrtle Money is created out of thin air, because the original depositor still is entitled to his $100, then $90 is loaned out $190, with $90 created out of thin air. You will have to read further but Griffin's math is spot on. Plus the Fed actually DOES create money out of thin air, electronic money that gets loaned to foreign governments, which we can't afford. Google Federal Reserve Audit to see full report. Not enough room in comments...

[jimmyrtle]

@libertylady76

Each bank loans out a portion of deposits. No deposit no loan.

Money from thin air wouldn't need a deposit.

[libertylady76]

@jimmyrtle you have your math wrong, not Ed.When the banks loan out the unreserved money, it goes into other banks with a small reserve, and they in turn loan it out. This does, in fact, create "money out of thin air" which is inflationary. Read Henry Hazlett "Economics in One Lesson." Most people don't understand this, but it is important that we understand it completely.

[jimmyrtle]

He thinks that when a bank buys a government bond, it's inflationary?

Ummm....Ed, when a bank buys a bond, they have less available to make loans...

less available to work thru the "money multiplier" to increase the money supply, not more.

If he can get such a simple idea backwards, the rest of his work is suspect.

[jimmyrtle]

Just a random sample of Griffin's confusion.

I have his book, 4th edition.

Page 201...The banking cartel holds a monopoly in the manufacture of money. Consequently, money is created only when IOUs are "monetized" by the Fed or by commercial banks. When private individuals, corporations, or institutions purchase government bonds, they must use money they have previouslt earned and saved. In other words, no new money is created, because they are using funds that are already in existence.....

[jimmyrtle]

...Therefore, the sale of government bonds to the banking system is inflationary, but when sold to the private, it is not. That is the primary reason the United States avoided massive inflation during the 1980s when the federal government was going into debt at a greater rate than ever before in its history.By keeping interest rates high, these bonds became attractive to private investors, including those in other countries. Very little new money was created, because most of the bonds were ...

[jimmyrtle]

...purchased with American dollars already in existence. This, of course, was a temporary fix at best. Today those bonds are continually maturing and are being replaced by still more bonds to include the original debt plus accumulated interest