Opponents of the Federal Reserve often refer to it as the ‘Creature from Jekyll Island’, borrowing the name given to it by Edward Griffin, author of a book by the same title.
Griffin, in ‘The Creature from Jekyll Island’ documents an organized and successful attempt to seize control over the U.S. monetary system by powerful American and European banking families.
Powerful banking interests met in New Brunswick New Jersey where they took the train to Georgia. Jekyll Island is an island off the coast of Georgia where the idea of the Federal Reserve was hatched as was its plan for implementation.
Unpopular bankers like JP Morgan would publicly come out against the Federal Reserve in an effort to dupe congress and the public into supporting a virtual monopoly over the U.S. money supply. In one bold action American and European banking interests would wipe out smaller competitor banks and have a monopoly over the U.S. monetary supply backed by the police power of the government.
Griffin documents several earlier attempts at gaining control over the U.S. monetary system which included a manufactured financial crises and an attempt on President Andrew Jackson’s life, who Griffin credits with saving the republic during his term in office during the 1800s. Jackson defeated central bank planners from gaining control over the money supply.
Griffin refers to the Federal Reserve Act of 1913 as the ‘Silent Revolution’, essentially a coup of the U.S. government. Griffin’s work is documented and presents historical evidence to support what he writes making a compelling case.
GOP presidential hopeful, Congressman Ron Paul, has truly entered the arena of battle when he declared the central bank and the Federal Reserve ‘illegal and unconstitutional’ before a national audience on C-Span during the Iowa Straw Poll. Paul has attacked the ‘printing presses’ and the ‘inflation tax’ referring to the lack of a gold standard or use of gold to anchor the currency.
It is unclear whether Paul’s attack will play out well or not. The U.S. economy has been rattled on Wall Street and more importantly is experiencing the worse real estate decline in a generation which may have an impact that has yet to of filtered into the rest of the economy.
With the inflationary pressure of rising gas prices on one end that would usually signify raising interest rates, being counter balanced by the brutalized real estate market that can’t endure an increase in interest rates, the federal reserves hands are tied to a great extent.
Raising interest rates would increase the economic hardships many American families face yet so would allowing an inflationary return to the 1970s. Unless the Federal Reserve can balance the economic forces at work, an economic climate may be created that benefits the call for radical change that Paul is calling for. Of course, radical change that may increase the economic pain felt by Americans may be rejected as well.
While Griffin documents the problem well, even he is a little vague with his prescription for a cure and admits it may be a little painful. Whether Americans reject or accept the cure offered by Paul, may well depend on it being a relief from pain or an increase in pain at the time of the election.
Outside of a rise or fall in interest rates any discussion of the actual process of money control or creation is a taboo topic in controlled media forums. Paul’s presidential campaign may change that if it continues to gain momentum.
Whether the Greenback gets a Gold lining, that issue is left to the voters.