The Creature From Jekyll Island Part 1
In the preface to the creature from Jekyll Island , Griffin explains that in his research, he discovered that the true events behind the creation of the federal reserve, veer far from the commonly accepted myths. The person who chooses to accept the reality we are experiencing and heaven forbid, convey that message to someone else, will likely be suspected of tin foil hat paranoia. Well, we’re not going to back away from telling the truth, so we’re going to go ahead and write off the naysayers as unfortunate sheeple of the establishment. You, taking the time to watch this is, great evidence of your willingness to learn, and seek out truths, instead of simply accepting everything that the establishment wants you to believe.
So what is the federal reserve?
We need to do a little bit of warming up on the concept of banking, before we dive right in to the history of the federal reserve, because the fed is a centralized banking system. Let’s read through a hypothetical question and answer session that is included in the creature form Jekyll Island, that will put the concept of banking into perspective for you. This exercise was created in 1957, so the monetary figures will seem low, but you’ll get the point.
Most of us have bank accounts, and are familiar with banks, but banking, or the banking system is something that we don’t often have a grasp of entirely. So let’s ask the question:
Q: What are banks for?
A: To make money
Q: For the customers?
A: For the banks
Q: Why doesn’t bank advertising mention this?
A: It would not be in good taste. But it is mentioned by implication in references to reserves of $249,000,000 or thereabouts. That is the money that they have made.
Q: Out of the customers?
A: I suppose so.
Q. They also mention assets of $500,000,000 or thereabouts. Have they made that too?
A. Not exactly. That is the money they use to make money.
Q. I see. And they keep it in a safe somewhere?
A. Not at all. They lend it to customers.
Q. Then they haven’t got it?
Q. Then how is it assets?
A. They maintain that it would be if they got it back
Q. But they must have some money in a safe somewhere?
A. Yes, usually $500,000,000 or thereabouts. This is called liabilities.
Q. But if they’ve got it, how can they be liable for it?
A. Because it isn’t theirs.
Q. Then why do they have it?
A. It has been lent to them by customers.
Q. You mean customers lend banks money?
A. In effect. They put money into their accounts, so it is really lent to the banks.
Q. And what do the banks do with it?
A. Lend it to other customers.
Q. But you said that the money they lent to other people was assets?
Q. Then assets and liabilities must be the same thing?
A. You can’t really say that.
Q. But you’ve just said it. If I put $100 into my account, the bank is liable to have to pay it back, so its liabilities. But they go and lend it to someone else, and he is liable to have to pay it back, so it’s assets. It’s the same $100 isn’t it?
A. Yes. But…
Q. Then it cancels out. It means, doesn’t it, that banks haven’t really any money at all?
Q. Never mind theoretically. And if they haven’t any money, where do they get their Reserves of $249,000,000 or thereabouts?
A. I told you. That is the money they have made.
A. Well, when they lend your $100 to someone they charge him interest.
Q. How much?
A. It depends on the bank rate. Say five and a half per cent. That’s their profit.
Q. Why isn’t it my profit? Isn’t it my money?
A. It’s the theory of banking practice that…
Q. When I lend them my $100 why don’t I charge them interest?
A. You do
Q. You don’t say. How much?
A. It depends on the bank rate. Say half a per cent.
Q. Grasping of me, rather?
A. But that’s only if you’re not going to draw the money out again.
Q. But of course, I’m going to draw it out again. If I hadn’t wanted to draw it out again I could have buried it in the garden, couldn’t I?
A. They wouldn’t like you to draw it out again.
Q. Why not? If I keep it there you say it’s a liability. Wouldn’t they be glad if I reduced their liabilities by removing it?
A. No. Because if you remove it, they can’t lend it to anyone else.
Q. But if I wanted to remove it, they’d have to let me?
Q. But suppose they’ve already lent it to another customer?
A. Then they’ll let you have someone else’s money.
Q. but suppose he wants his too… and they’ve let me have it?
A. You’re being purposely obtuse
Q. I think I’m being acute. What if everyone wanted their money at once?
A. It’s the teary of banking practice that they never would.
Q. So what banks bank on is not having to meet their commitments?
A. I wouldn’t say that
Q. Naturally. Well, if there’s nothing else you think you can tell me?
A. Quite so. Now you can go off and open a banking account.
Q. Just on last question
A. Of course
Q. Wouldn’t I do better to go off and open up a bank?
Wow… Interesting stuff… We learn that like with any business, a bank is in the business of building a profit, by collecting interest on your money. Nothing extraordinarily complex, but banks can run into trouble when customers have a run on the bank, or currency draining depletes the cash that the bank has on hand. These are a few problems that were addressed in the development of the federal reserve. The important thing to remember here, before going into more detail, is that the federal reserve is comprised of a central collective of banks, and as with most things involving human beings, those involved in setting up the federal reserve, did so with the objective of benefiting and profiting for themselves. We’ll dive down the rabbit hole of the Fed’s insane history in the next video.
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Thanks so much… We’ll see you again soon.