The Creature from Jekyll Island

The Creature from Jekyll Island is a book that, for me, a wonderful gift from my brother Kye. Written by G. Edward Griffin, the book was published in 1994.

As said the book was a gift, a couple of years ago. At roughly 700 pages and being somewhat technical in nature, it took me a couple of months to read, amongst other books.

The author is not loved by academia or media types, but it does present a reasonable theory as the way banking works in the world.

Basically, the process is this banks love for governments, and not just the United States to spend more than they bring in. This motivates governments to generate revenue by increasing the money supply, aka inflating the currency. The revenue is supplied by, in the US, issuing notes to the Federal Reserve, who intern lend that money to commercial banks, who in turn can lend the money out to whomever why maintaining, theoretically 10% in reserve. The commercial banks can now leverage that remaining 90% into multiple or the original amount. Essentially creating money that is never printed. 

The book in depth discusses fiat money and how the true value of money should be tied to gold or similar. Anchored currencies are the safest, but the politicians hate being tied to a commodity and the bankers can't profit on reserves not in play. So, we are likely doomed to a future of more of the same.

I might add that most financial systems are subject to dynamic forces, no system is perfect, all have had booms and failures.

Loved the book, recommend it highly. Don't be too public with it, you might be judged a right wing not rather than a financial scholar.

Enjoy