I am re-posting a recent article written by Paul Rosenberg and posted on the Casey Research website, “That Couldn’t Possibly Be True: The Startling Truth About the US Dollar.”
In this enlightening piece, Rosenberg provides a clear and simple explanation of the process of money creation in the United States and any country where money creation is under the control of a Central Bank – which is every country in the world today:
“The secret to understanding the creation of dollars and of the operation of the Fed lies in two quotes from economist John Kenneth Galbraith:
- ‘The study of money, above all other fields in economics, is one in which complexity is used to disguise truth or to evade truth, not to reveal it.
- The process by which banks create money is so simple that the mind is repelled.’”
You can read a complete account of how the Federal Reserve System was created in The Creature from Jekyll Island: A Second Look at the Federal Reserve, by G. Edward Griffin, available for free on the Internet Archive website.
Jekyll Island is an island off the coast of the State of Georgia, in Glynn County. In November of 1910, Senator Nelson W. Aldrich and Assistant Secretary of the U.S. Treasury Department A. Piatt Andrew, accompanied by five of the United Sates’ leading financiers of the time (Frank Vanderlip, Henry P. Davison, Charles D. Norton, Benjamin Strong, and Paul Warburg) met at the Jekyll Island Club to discuss monetary policy and the banking system, an event that allegedly led to the creation of the Federal Reserve System.
According to the Federal Reserve Bank of Atlanta, the 1910 Jekyll Island meeting resulted in a draft legislation for the creation of a U.S. central bank. Parts of this draft (known as the “Aldrich Plan”) were incorporated into the 1913 Federal Reserve Act.