Creature From Jekyll Island by G. Edward полностью

2- See R.D. Richards, Ph.D., The Early History of Banking in England (New York-Augustus M. Kelley, original edition 1929, reprinted 1965), pp. 148-50.

r K EATUR E FROM JEKYLL ISLAND

178 T K , J

been immediately recognized, and it probably would not

h a v e been accepted at full face value in payment for the expenses of war. By creating money through the banking system, however, the process became mystifying to the general public. The newly created bills and notes were indistinguishable from those previously backed by coin, and the public was none the wiser.

The reality of central banks, therefore—and we must not forget that the Federal Reserve System is such a creature—is that, under the guise of purchasing government bonds, they act as hidden money machines which can be activated any time the politicians want. This is a godsend to the political scientists who no longer must depend on taxes or the good credit of their treasury to raise money. It is even easier than printing and, because the process is not understood by the public, it is politically safe.

The monetary scientists, of course, are amply paid for this service. To preserve the pretense of banking, it is said they collect interest, but this is a misnomer. They didn't lend money, they created it. Their compensation, therefore, should be called what it is: a professional fee, or commission, or royalty, or kickback, depending on your perspective, but not interest.

FROM INFLATION TO BANK RUNS

The new money created by the Bank of England splashed

through the economy like rain in April. The country banks outside of the London area were authorized to create money on their own, but they had to hold a certain percentage of either coin or Bank of England certificates in reserve. Consequently, when these plentiful banknotes landed in their hands, they quickly put them into the vaults and then issued their own certificates in even greater amounts. As a result of this pyramiding effect, prices rose 100% in just two years. Then, the inevitable happened: There was a run on the bank, and the Bank of England could not produce the coin.

When banks cannot honor their contracts to deliver coin in return for their receipts, they are, in fact, bankrupt. They should be allowed to go out of business and liquidate their assets to satisfy their creditors just like any other business. This, in fact, is what always had happened to banks which loaned out their deposits and created fractional money. Had this practice been allowed to continue, there is little doubt that people eventually would have understood that they simply do not want to do business with those THE SECRET SCIENCE 179

kinds of banks. Through the painful but highly effective process of tnal and error, mankind would have learned to distinguish real money from fool's gold. And the world would be a lot better because of it today.

That, of course, was not allowed to happen. The Cabal is a partnership, and each of the two groups is committed to protect each other, not out of loyalty, but out of mutual self interest. They know that, if one falls, so does the other. It is not surprising, therefore that, when there was a run on the Bank of England, Parliament intervened In May of 1696, just two years after the Bank was formed, a law was passed authorizing it to "suspend payment in specie. By force of law, the Bank was now exempted from having to honor its contract to return the gold.

THE PATTERN OF PROTECTION WAS SET

This was a fateful event in the history of money, because the precedent has been followed ever since. In Europe and America the banks have always operated with the assumption that their Partners in government will come to their aid when they get into rouble. Politicians may speak about "protecting the public," but the underlining reality is that the government needs the fiat money produced by the banks. The banks, therefore-at least the big ones- mus

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It is commonly observed in modern times that criminals often are treated lightly when they rob their neighbor. But if they steal trom the government or a bank, the penalties are harsh. This is merely another manifestation of the Cabal's partnership. In the eyes of government, banks are special, and it has been that way even trom the beginning of their brotherhood. For example, Galbraith tells us:

In 1780, w h e n L o r d G e o r g e G o r d o n led his m o b through L o n d o n in protext against against the Catholic Relief Acts, the B a n k w a s a principal target It signified the Establishment.