The Great Depression Online

Great Depression Online Archive Issue:

The Business of Inflation

Great Depression Online
Long Beach, CA
November 09, 2010

Inside This Issue You Will Discover…

*** The Birth of the Federal Reserve
*** A World of Perpetual Inflation
*** The Business of Inflation
*** And More

The Birth of the Federal Reserve

Where did the Federal Reserve come from?  How did it come to exist?

These are the questions.  Here are some answers…

The plans to create the Federal Reserve were first drawn up in a secret meeting between Senator Nelson Aldrich and members of nation’s most powerful financers, at Jekyll Island, Georgia, in November 1910.

Bertie Charles Forbes, founder of Forbes magazine, may have been the first to write of the secretive meeting…

“Picture a party of the nation’s greatest bankers stealing out of New York on a private railroad car under cover of darkness, stealthily riding hundred of miles South, embarking on a mysterious launch, sneaking onto an island deserted by all but a few servants, living there a full week under such rigid secrecy that the names of not one of them was once mentioned, lest the servants learn the identity and disclose to the world this strangest, most secret expedition in the history of American finance.”  

~~~~~~What You Must Know~~~~~~

Where does 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.  

The Creature from Jekyll Island


Forbes continues…

“I am not romancing; I am giving to the world, for the first time, the real story of how the famous Aldrich currency report, the foundation of our new currency system, was written… The utmost secrecy was enjoined upon all.  The public must not glean a hint of what was to be done. Senator Aldrich notified each one to go quietly into a private car of which the railroad had received orders to draw up on an unfrequented platform. Off the party set. New York’s ubiquitous reporters had been foiled… Nelson (Aldrich) had confided to Henry, Frank, Paul and Piatt that he was to keep them locked up at Jekyll Island, out of the rest of the world, until they had evolved and compiled a scientific currency system for the United States, the real birth of the present Federal Reserve System…”

Several years later Congress passed the Federal Reserve Act of 1913…effectively nullifying Article I, Section 8, of the Constitution, which empowered Congress to coin money, and Article I, Section 10, which specified money to be coined of gold and silver and could not be bills of credit.

What gives?  

A World of Perpetual Inflation

As you can see, the paper money system we have today was not intended by the nation’s founders.  The Constitution specifically prohibited paper money and made no mention of the Federal Reserve – or any central bank.

The Federal Reserve is often thought to have been designed after the English Central Bank.  However, that is not the case.  The Federal Reserve was actually based on the German central bank model.  In fact, this was the same German central bank that financed World War I and collapsed in the 1920s following the spectacular inflation of the Weimer Republic.  What’s more, the destruction and disorder the collapse of the deutschmark wrought helped usher in Hitler and World War II.

While the Federal Reserve has done nothing anywhere near as destructive as the German central bank of the early 20th century, its track record is not without blemishes…

Most notably is that the Federal Reserve has created a Ponzi finance of sorts that encourages perpetual inflation.  The very fact that the dollar has lost 95 percent of its value under their management confirms this.  Yet, up until now, inflation has been somewhat contained; its occurrence has been gradual.

But all that could change…particularly, as we sail into the uncharted waters of QE2…

The Business of Inflation

Over the weekend a collection of past and present Federal Reserve officials met at Jekyll Island, Georgia, to celebrate the 100-year anniversary of the secret meeting between Senator Aldrich and the banking elite of the day, which spawned the creation of the Federal Reserve.

Following last week’s announcement of QE2 it must have been a pleasant break for Federal Reserve Chairman Ben Bernanke.  There, surrounded by his cohorts, he was able to bask in the glories of their creation.

“This Jekyll conference on the Fed’s history was a relaxed occasion,” reported the Financial Times.  “With the Fed’s new, $600bn programme of asset purchases agreed on Wednesday, there was little of the tension present at the Fed’s last two big conferences, in Jackson Hole, Wyoming, in August, and Boston, Massachusetts, at the start of October.”

Still, the meeting was not without its dishonesties…particularly when defending their latest policy action…

“We’re not in the business of trying to create inflation,” Bernanke said.

No doubt, he had his fingers crossed behind his back.


M.N. Gordon
Great Depression Online

P.S.  Want to learn more about the creation of the Federal Reserve?  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.

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