Commentary
The Creature from Jekyll Island
 

Mr. G. Edward Griffin, author of The Creature from Jekyll Island, apparently receives queries from various people regarding NESARA. Mr. Griffin wrote a generic response for his followers.

From Mr. Griffin’s web site:

“NESARA: NESARA is an old idea dressed in new clothing. The assumption is that those big, bad bankers are the cause of all our monetary problems. If we can just take away their power to create money out of nothing and let our politicians create money out of nothing instead, everything will be all right. It won’t. The problem lies, [in] not who runs the scam, but in the fact that it IS scam. Fiat money is fiat money no matter who make[s] it. Frankly, politicians are no more trustworthy than bankers — and often they are one and the same. Besides, making money out of nothing violates the Constitution.”

Note: What is now posted on Mr. Griffin’s web site (http://realityzone.stores.yahoo.com/realityzone/mesfromgedgr.html) is not the original posting.

Although we agree with Mr. Griffin regarding abolishing the Fed, establishing a sound currency, and preventing politicians from creating money, we are tempted to think that Mr. Griffin has not truly studied the NESARA proposal, but only provided a cursory glance. We only hope that Mr. Griffin will someday study NESARA.

We are posting the following message exchange as informational value. Responding to Mr. Griffin’s generic response, a NESARA supporter wrote to Mr. Griffin. [Editor’s note: because this was an email exchange we’ve made minor editorial changes to improve readability.]

From: J. B.
To: webmaster@realityzone.com
Sent: Sunday, January 27, 2002 5:41 PM
Subject: Loss of credibility

Your Reality Zone certainly lost a lot of creditability with this posting. Have you actually studied this proposed bill and its underlying ideas?

The issues of fiscal and monetary policy are moral issues which dictate the rules governing the applications of the concept of money and the type of currency used within these systems. Of all of the systems known, a truly free market system is by far the most moral.

I would suggest to you reread The National Economic Stabilization and Recovery Act, assuming that you actually read it once already, and its supporting ideas. It is both Constitutional and politically doable.

The problem with fractional reserve fiat currency banking is found not in its existence but in the allocation of the benefits to be derived from its ownership and control. NESARA insists that a sovereign people by moral right own the nation’s monetary system and are due the major benefits of that ownership. It is the government’s constitutional duty to establish the standards applicable to the monetary system and the rules and regulations for the banking industry. Neither the government nor the banking institutions are entrusted with control of the monetary system, that function being performed by a free market within the rules instituted by NESARA.

NESARA rests upon a new expanded theory of money derived from system theory and upon the same two legal pillars that [von] Mises applied: (1) the enforcement of contracts by the civil government; and (2) the right of peaceful, non-fraudulent voluntary exchange.

A few professionals may understand and debate economic theory and monetary policy, but the public’s primary interest will remain as it always has in voting for candidates who promise them immediate positive benefits in their daily lives. There lies the path to fiscal and monetary reform.

The nesara.org web site contains a lot of information but none of it is so complex that it defies understanding by anyone of average intelligence who takes the time to study it. I fail to understand how you could be so far off point.

J. B.

Mr. Griffin’s response to J. B.:

From: G. Edward Griffin <ge.griffin@verizon.net>

Hello J. B.

I suggest you read The Creature from Jekyll Island, especially the section called A Crash Course on Money. You may not agree with it, but it will give you an understanding of the reasons I cannot endorse NESARA. The problem is fiat money, not who makes it. NESARA does not eliminate fiat money. It merely turns the operation over to the Treasury. It is based on the assumption that we can’t trust bankers but we can trust politicians. History does not support that confidence.

In the Executive Summary, point number one says that the bill would establish Treasury credit notes. That means money based on debt, not bullion. It is fiat money. And, incidentally, credit notes are forbidden by the Constitution. So the claim that NESARA is Constitutional is totally false.

Point number three calls for turning the Fed over to the Treasury. Point number five calls for continuing the operation of the Open Market Committee, which is the primary mechanism by which the Fed creates money out of nothing.

Don’t fall for this trap. It is not a solution. It will give people the false impression that something is being done but, in the end, the same people would be perpetuating the same scam as before.

Ed Griffin

J.B.’s response:

Dear Ed,

I have read all of The Creature From Jekyll Island and everything else that I can find on the subject and I do understand the creation of fiat money by the government and the banks.

Back in the early 1980s I attended lots of the Patriot meetings and know most of the people in the movement. At a meeting in Denver of about 400 people, I asked if any of the people present could tell me how much money the Fed rebated to the U.S. Treasury that year. No one could tell me even though several knew that since W.W. II the Fed must rebate excess profits to the government.

During a break for lunch, I called the Comptroller’s office of the Fed bank in Denver to ask for that information. A nice lady answered the phone but said she couldn’t help me because all of the officers of the bank were out to lunch. Then she gave me the 800 number for the Fed in Kansas City and suggested that I call them saying, “They have already had lunch.”

I immediately called the K.C. Fed and asked to speak to the Comptroller. When he answered the phone I asked him two questions: 1) How much money did the Fed receive as interest payments on U.S. debt that year? and 2) How much money the Fed rebated to the U.S. Treasury that year?

The Comptroller explained to me that he couldn’t immediately answer my questions because he didn’t have the numbers for the Fed, but he could give me the numbers for the K.C. bank, which should be typical, because he just happened to have them on his desk at the time I called.

Now I don’t remember the numbers exactly but he said the K.C. bank had collected about $95 billion in interest payments on U.S. debt that year and had rebated about $112 billion to the U.S. Treasury. I told him that his numbers didn’t sound reasonable, that the KC Fed couldn’t be rebating more than they collected or they would soon go broke.

The Comptroller explained to me that he had answered my questions exactly. The KC Fed had collected the $95 billion on U.S. government debt and rebated the $112 billion to the Treasury because that number included the rebated interest they had collected on English, German, Japanese, etc. bonds also!

I provided that information to the conference attendees that afternoon. 1) They didn’t believe me because “the Fed Officers are all liars” and 2) They had never bothered checking the facts because, “Everybody at the Fed is a crook and we don’t talk to those people.”

Needless to say, the so-called Patriots lost a lot of creditability with me that afternoon.

I will certainly agree with you that the government gave away our monetary system to the Fed in 1913 and, in collusion with them, stole gold from the American people. I am mad about that and I want our monetary system and our gold back!

As a political strategist and consultant, I can tell you that NESARA offers the American people their best chance for recovery. The Fed bankers like fiat money so much, we should give them some! NESARA authorizes the Treasury to print new currency and deliver a pile of it to the Fed to repurchase all outstanding U.S. debt as provided in the original 1913 act which created the central bank.

The Secretary of the Treasury delivers the new fiat money to the Fed and fires Alan Greenspan. The U.S. Treasury recovers all of the nation’s debt held by the Fed and all of our gold for just a printing cost. And Alan and the other Fed officers don’t get to take any of that new fiat money with them because it all belongs to the Fed and they are just employees. That same fiat money now gets used to “buy” back all of the Fed stock held by the commercial banks and to recover any government debt paper they hold. And since the new fiat currency is the only thing they can use as bank reserves, it doesn’t enter commerce and doesn’t affect prices.

NESARA requires that all of the recovered gold and silver be coined and made available to the American people at market price in exchange for the fiat currency they hold. Seems very fair; we give them their fiat paper and get our gold back.

The Constitution prohibits “Bills of Credit” which were immoral because they promised redemption in gold when there was never enough gold to redeem the full amount issued. The new Treasury Credit Notes are Constitutional because they are not redeemable and their acceptance cannot be compelled. And if you don’t like any you may find, turn them in for gold coin.

Point number five does call for continuing the operation of the Open Market Committee, which is the primary mechanism by which the Fed creates money out of nothing, but maybe you didn’t notice its structure or its limitations. Twelve good Americans make up the new Board, not one of which is a banker, lawyer or a politician. If you are fraudulently charged with a crime, you can expect 12 good people to come to your rescue. And if this system doesn’t work then nothing in the American system will work. The new Board works the same way and notice that they can only buy debt, which is immediately canceled, they can’t sell it, ever.

I would be the first to admit that this is neither ideal or an end-all solution but it does make a good start. Under NESARA, the government sets the monetary standards but is not allowed to print currency other than that required to get back our monetary system and our gold. The Fed owners may claim that the Government is stealing their assets for a printing cost, but it would all be legal, using the same methods they used to steal from us in the first place. We learned this trick from their example.

The new banking equations should provide sufficient incentive for Joe and Jane Doe to demand Congress pass NESARA (provided they ever learn about them in spite of a controlled mass media) or to get us a new Congress. The people can recover about $1 trillion in secured debt fraudulently taken from them in this fiat banking scheme. And NESARA’s new fiduciary banking rules will help restore honest banking. If anything, NESARA doesn’t go far enough in returning properties, such as family farms, that were lost through government guaranteed loans.

I wish to encourage your constructive criticism of NESARA upon the facts. And if you have a better, politically doable plan, I would love to see your legislative proposal.

J. B.

Mr. Griffin did not reply.