Recreating The Monster

Each of the regional Fed banks is at Jekyll Island, Georgia today, congratulating themselves and celebrating the 100 year anniversary of a secret meeting in November 1910.   This date marks the beginning of our current fiat currency based financial system. It also marks the beginning of a world view that encourages the legalized robbery of every citizen by big government, through big corporations, big media, and inflation.

A brief summary of the first meeting follows courtesy of:
Griffin, G. Edward (1998). The Creature from Jekyll Island : A Second Look at the Federal Reserve.

Forbes magazine founder Bertie Charles Forbes wrote several years later:

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. 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, the plan done on Jekyll Island in the conference with Paul, Frank and Henry... Warburg is the link that binds the Aldrich system and the present system together. He more than any one man has made the system possible as a working reality.

What is interesting, 100 years later, that some within the Federal Reserve system are having doubts about the ability or willingness of Fed Chairman Bernanke to tame this monster that has been unleashed.

From Bloomberg:

E. Gerald Corrigan, former Federal Reserve Bank of New York president, said he’s concerned that the central bank’s effort to boost inflation by expanding stimulus risks causing price increases out of the Fed’s control.

“Even in the face of substantial margins of underutilization of human and capital resources, efforts to achieve an upward nudge in today’s very low inflation rate make me somewhat uncomfortable,” Corrigan, chairman of Goldman Sachs Group Inc.’s bank subsidiary, said in prepared remarks at a Fed conference on Jekyll Island, Georgia.

“There is a risk -- however small -- that once that nudge takes hold, it may not be easy to cap inflation and inflationary expectations at levels that are still broadly compatible with price stability,” said Corrigan, who headed the New York Fed, the central bank’s liaison with Wall Street, from 1985 to 1993.

Now we have Mr. Bernanke aka Dr. Frankenstein, loading up on $600 billion of Treasuries and asset purchases through Quantitative Easing #2 in an effort to hold down interest rates and "boost" the economy.

Will this work?

There are no examples in history to show such a move has any positive benefits.

Besides, if it did work, this something for and from nothing, we could simply print money continually to finance all our needs. Taxation could end, and we would all be rich!

If we look at history closely, we can find examples when such actions produced negative consequences - like 1920s Germany, Argentina & Zimbabwe to name three.

This is the monster that must be slayed.

Before it completely decimates our remaining shreds of liberty.

This is the message that the gold to bond ratio is sending.

Anything above 10 is dangerous. We are now approaching 11.