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This review is from: The Creature From Jekyll Island: A Second Look At the Federal Reserve

By     Guy Denutte “A concerned citizen”
This is the most important economic textbook since Marx wrote Das Capital. Whereas Marx goes great lengths explaining all the problems concerning the *production cycles* of capitalism, Griffin explains the *money supply* side. And this ends up being even more disturbing. Griffin explains that money is created “out of nothing”, worse even, out of “less than nothing”, out of DEBT. Whenever the government is in need of money, they “lend” it to the Federal Reserve, which, by the way, isn’t a government institution, but a cartel of private banks, invented by the Rockefeller and Morgan families in Jekyll Island in 1910 and established by Congress in 1913. This Fed “creates” the money the government needs in the form of government bonds, ultimately made out of “paper and ink”. Government then spends this money (payment to contractors etc.) and this money ends up as deposits in private bank accounts, where it is used in turn to back up private loans. More money is created “out of nothing”, since banks typically lend 9 dollars for each dollar they have in deposit ! As you can see, all money is created out of debt. Would all debts be paid, all money would literally… disappear… Money which is not backed up by gold is thus an illusion.

Now, governments do all what is in their power to be indebted. Remember Bush and Obama rescued “Banks Too Big To Fail” (sic) and other Big Corporations, each time with more than 700 billion USD, without even raising taxes ! They even did better ! They lowered taxes at the same time ! Ever wondered how they perform this fascinating trick? Read this important book. Griffin shows that recollecting taxes isn’t really necessary. But we DO end up paying those bills, every time government decides to “create money out of nothing”. Don’t be mistaken. Every time our governments expand the money supply, inflation goes up, and our money ends up being worth less. In 1966, when Greenspan was still a brilliant economist and not a corrupted chairman of the Fed, he called inflation a “hidden confiscation of wealth”.

The first edition of Griffin’s book was published in 1994, and has very important historical explanations and references. If you – like me – heard once too much that the actual crisis is similar to the Great Depression of the `30s, and always wanted to know what really happened then, then this book will sort it all out. As a *complementary work* in which the current crisis is explained in great detail, I would also highly recommend Kevin Phillips Bad Money: Reckless Finance, Failed Politics, and the Global Crisis of American Capitalism.

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