Creature From Jekyll Island by G. Edward

loans until the process plays itself out to the maximum

effect, which is...

BANK FIAT MONEY = UP TO 9 TIMES GOVERNMENT

The amount of fiat money created by the banking cartel

is approximately nine times the amount of the original

government debt which made the entire process possi-

ble. When the original debt itself is added to that figure, we finally have ...

| TOTAL HAT MONEY = UP TO 10 TIMES GOVERNMENT

The total amount of fiat money created by the Federal

Reserve and the commercial banks together is approxi-

mately ten times the amount of the underlying govern-

ment debt. To the degree that this newly created money

floods into the economy in excess of goods and services,

it causes the purchasing power of all money, both old

and new, to decline. Prices go up because the relative

value of the money has gone down. The result is the

same as if that purchasing power had been taken from us

in taxes. The reality of this process, therefore, is that it is a . . .

HIDDEN TAX = UP TO 10 TIMES THE NATIONAL DEBT**)

Without realizing it, Americans have paid over the

years, in addition to their federal income taxes and excise taxes, a completely hidden tax equal to many times the

national debt! And that still is not the end of the process.

Since our money supply is purely an arbitrary entity

' with nothing behind it except debt, its quantity can go 1- That is a theoretical maximum. In actual practice, the banks can seldom loan out all of the money they are allowed to create, and the numbers fall short of the maximum.

I

200 THE CREATURE FROM JEKYLL ISLAND

down as well as up. When people are going deeper into

debt, the nation's money supply expands and prices go

up, but when they pay off their debts and refuse to

renew, the money supply contracts and prices tumble.

That is exactly what happens in times of economic or

political uncertainty. This alternation between periods of expansion and contraction of the money supply is the

underlying cause of...

| BOOMS, BUSTS, AND DEPRESSIONS

Who benefits from all of this? Certainly not the average

citizen. The only beneficiaries are the political scientists in Congress who enjoy the effect of unlimited revenue to

perpetuate their power, and the monetary scientists

within the banking cartel called the Federal Reserve

System who have been able to harness the American

people, without their knowing it, to the yoke of modern

feudalism.

RESERVE RATIOS

The previous figures are based on a 'reserve' ratio of 10% (a money-expansion ratio of 10-to-l). It must be remembered, however, that this is purely arbitrary. Since the money is fiat with no precious-metal backing, there is no real limitation except what the politicians and money managers decide is expedient for the moment. Altering this ratio is the third way in which the Federal Reserve can influence the nation's supply of money. The numbers, therefore, must be considered as transient. At any time there is a

'need' for more money, the ratio can be increased to 20-to-l or 50-to-1, or the pretense of a reserve can be dropped altogether. There is virtually no limit to the amount of fiat money that can be manufactured under the present system.