G. Edward Griffin on Glenn Beck

translation project www.mustwatch.eu Get involved and help us out! main let's talk about something really depressing were willing and sells them i it's the fed uh... all it's gonna be spooky um... during the financial crisis most americans have heard a lot about the federal reserve but most americans don't know anything about it how it works what it is true even runs it or how it's run you know that advise our debt sets up interest rates has a lot to do with the economic well-being of our nation tuesday where did it come from tonight is uh... part of our key four focus this year we're going to delve into t_-two and get educated on the fed g edward griffin he is the author of this book and if one more person has been this book i really i mean is that because i'd get this from so many guy glum people alike how do you read this book yes i have may i recommend have you read this book if not read it it is the creature from jekyll island it is eighty-five fascinating book on the fat the author is one of our guests tonight where to start at the beginning or to talk a little bit about what they're doing out but i i want to know we're just gonna start at the beginning and really we're up we're going to give the history of the fed as told by the fat the happy tail on the air on that website are you ready for this is great area uh... here is what's this quote on their website after alexander hamilton spearheaded a movement advocating the creation of a central bank the first bank of the united states was established in seventeen ninety one you see how great listens the ferry was started by our founding father i think the whole no no it wasn't the first bank isn't the so what does that have to do with anything nothing but they just wanted to throw a founding fathers name in there the banks charter ran for about twenty years and because it took about twenty years before imperatives realized defense that bank of america died as our get out they've got way too much power and influence just like all the other founders said a proposal to renew it how packed happy story from the fed's website the situation deteriorated to such an extent that in eighteen sixty a bill to charter a second bank of the united states was introduced in congress the second bank was very much like the first except beggar about three and a half times bigger in so is there a way isn't it anyway the charter also lasted about twenty years before people way what are we doing it americans realize that wielded too much power and influence and a proposal to renew in it also failed then according to the fed's website they got rid of that nasty charter thing in the will of the people in nineteen oh seven a severe financial panic jolted wall street and forced to several banks into failure many americans thought their banking structure was sadly out of date and needed major reform the first draft of the federal reserve act was called the aldrich bill because bob well the guy who wrote it was named aldrin and it failed president after refused to support it and he remembered he was so fat they had to have a special backed up for him then it underwent some surgery in a relation as the glass elin bill and of course it got a signature from progressive woodrow wilson in nineteen thirty wall that's the fed's story bill was introduced in nineteen oh seven and in nineteen thirteen it finally came to be isn't everything pretty concerned generali pop world the federal reserve act wasn't drafted in congress it was drafted on a private island off the coast of georgia in nineteen ten here is jekyll island and it was drafted under great secrecy jekyll island was the retreat for billionaire slyck william rockefeller j_p_ morgan and in nineteen ten senator nelson aldrich the republican whip whip in the senate and the chair of the national monetary commission his private railroad car to the new jersey railroad station where he and five other men were instructed to come one of the time and everybody pretend they just didn't know each other aldrich who is the guy remember he wrote the original he was uh... a business associate of j_p_ morgan all in the father in law to john the rockefeller junior so there's no special-interest happening there there was also abram fiat andrew assistant secretary of the treasury frank vanderloo uh... representing william rockefeller henry davidson and benjamin strong would j_p_ morgan and paul warburg uh... he is a partner he was a partner at um... at cool old and company he was representing the rock trial banking family uh... who's going to talk about the rule trial well he actually is an interesting character uh... if you ever saw a little orphan annie daddy warbucks was named after warburg these are the man that represented ones fourth of the in tire wealth of the world you think we got a problem with uh... wealth now those guys quarter of all of the money in the world morgans the proper colors world args all in one room backup when they start sacrificing chechans doesn't happen that i'll tell you um... these guys were all competitors according to uh... g edward griffin who will talk to in a minute they all had come together to form of banking cartel so they didn't have to compete against each other he says it was like a boil cartel or a shorter cartel but this cartel actually went in the partnership with the government they have great is that a it's kinda like the drug cartels in mexico way down and say that allowed it either sold for more than a week these men sat around and they sat around this big table and they hammered out all the details of what became the federal reserve system with five objectives how many of these do you agree with to stop the uh... growing competition from the nation's newer banks and understand that to obtain from franchise to create money out of nothing for the purpose of landing haven't really doesn't sound that either to get control of the reserves of all of the banks so the reckless ones wouldn't be exposed to currency drains are bankrupt well that's the care iti are bali she'd be thank you so much to shift the losses from the bank on a risk to the taxpayers huffington's getting better and better for you and me knowledge in the answer is no and then finally to convince congress that the purpose was to protect the public they started the federal reserve with no money just a checkbook the government could go to the fed and obtain instant money without having to consult the taxpayer one that country money created out of nothing and then given to the government is flown by the banks to you and me and then we pay interest on it and it goes to them interest on nothing again the fed is nothing more than a cartel like opec except it's a money cartel this cartel that brought the federal government into a partnership where you and i have to answer to it and is only too enforce the rules of the cartel you know to bring those into agreement with the federal laws to protect you operates under the protection of the federal government and the government has virtually given a monopoly to create the nation's money supply their are no elected officials there virtually no accountability to anyone the president doesn't listen i'm gonna name glenn beck is ahead of the fat which over leaves sarah when you're in i'm available or did i think that would amount to um... the fed gives the president to list to choose from really thank you chairman mao the fed is privately owned but by whom good question no one knows we can to open their books and we don't know who owns now here's an interesting spin from the federal reserve board website although they're set up like private corporations and member banks hold their stock the federal reserve bank so their existence to an act of congress and have a mandate to serve the public therefore really private companies a rather owned by the citizens of the united states plus fantastic let's all go to the bank atmega withdrawal or how about we lower the interest rates at the bank we own the next question and the answer on the site is our federal reserve bank employees considered government employees employees of the federal reserve banks are not government employees their page is part of their expenses of their employees reserve bank also it's like jerry that's interesting so it's not really private is our really public assistance mysterious magic money dispenser the advise all our own death sets are interest rates sets our economic policy loans billions of dollars to other countries houses borrow billions of dollars for other countries and prince money out out of free i'm just on the thing there and there's no tried for window but everything else sounds magical as an act news for you there's a lot of people you start talking about the federal reserve they start going into and then deliberate along with colonel sanders got together and they start going down crazy roads but there's no reason to do it it's crazy enough let's talk about just the facts let me introduce you to a couple of our guests because i've been i think we have um... and we have some interesting times ahead of us feeling the audiences house edward uh... g edward griffin is the author of the creature from jekyll island and uh... my kala at calabria is the uh... director of financial regulation uh... at the cato institute powers or doing well thank you delegate right the president sir but uh... address that would in effect that he said michael bowen started like my brother will be to the so park what do i get it right yes he did okay uh... let me go to now took place or to make sure i get g jean-michel eugene or do i call you edward orgy at edward will work just ok g elegy money yeah uh... edward uh... did i get the story right and what'd i miss you've got the story is very very right a lot of very interesting details of course we don't have time for it in a program like this but the essence of it you've got exactly right what did i miss that is important attack let me let me go here clear i'm a show you this timeline um... and this timeline shows all of the crash is not the panics but the crashes in the in the uh... united states a crash in thirty five one in eighteen eighty then it kinda picks up eighteen eighty eighteen ninety six nineteen hundred nineteen oh three nineteen oh seven then nothing collecting twenty-nine than thirty seven thirty eight forty six sixty two eighty seven there seems to do this clump of crashes it is there anything in this nefarious about those crashes or is this just policy and and everything else well there are two things at first of all you asked if there is anything that uh... it was left out uh... as i said the important items were there but there's one thing you might want to explained to the audience and that the reason for the secrecy that you mentioned why would they concealing their identities why did they denied that they went to this meeting and the answer is because of the american people had no that this bill which was supposed to protect the american people from the big bad bankers was actually written by those same bankers weather in the scam would have been out in the open and that's why they had to keep the whole thing secret so many years after the meeting took place just on the internet houses that we just uh... justice a story this week where the unions and all these people are saying the big bag banks are getting all of our money and i thought to myself one of the unions are the ones that racquetball this that then the government takes the money from the taxpayers and then has given it to the banks the banks of the ones that are thus through the central banks causing all this problem marquis help me on this i mean it's moved very much semi what we've seen is the central bank push in all this money into the system by the federal reserve very much please key role in creating the housing bubble to begin with and you might remember after the dot-com bubble burst right after nine eleven we cut the rates the fed coverage free speech with them to support worlds the mortgage market the housing market took off uh... and eventually the bubble was going to burst into burst in two thousand six minutes had started raising rates so they played a very big role in this and they're trying to create bubbles today if you look at what the quantitative easy's doing you look at the interest rates we see now is would you agree with me is the last one it's the last but like i think i've done this in two thousand five i think i said housing bubble uh... and then we're going to have the last one the money bubble yes it is the last one with while let's hope it's the last one i suspect that after this bubble burst the fed's gonna look for waited for a great another bubble will try to make us forget about the last bubble and that's really the way they were doing and there's a very conscious attitude in two thousand three two thousand four to say okay we're coming in there is off this recession because of the dot com mobile what do you make people for wealthier what we need to get to go out and spend and what they decided to do was let's jump the housing market everybody will feel like to have a lot of money to help people will people ought to go to work uh... and so what are they trying to do now let's jump stock market solely in there really is creating one bubble to try to offset the effect allows terrible so uh... edward let me go back to you we see the way they're working the bubbles now but let me go back into the past we see this column of crashes here and i know incorrectly if i'm wrong i think it's like a panic in the eighteen ninety z the eighteen ninety two eighty ninety six where i believe it was deeply morgan that loaned money to the united states he came in a personally bailed out and said i'll lend you money then another one happening like all three and he said you know i can do this anymore you guys are on your own i'll get my friends together and bill you guys out one more time and they did and that's what kind of led to this well that's exactly the historic origin of it but i think underlying this that we have to recognize the principal of the ponzi scheme the system really is a ponzi scheme as we're living through it right now it works as long as the uh... money supply continues to expand and expand and expand like any ponzi scheme you pay off the first investors so there's a very happy they bring in the the new investors as long as it expands it works but when it finally stops the whole thing comes to an end that's why they have to keep expanding the money supply well when you create money out of nothing you also face the fact that money goes back into nothing so this kind of a system makes the expansion and contraction inevitable the booms and the busts are inevitable if the money were back by something solid like gold or silver that you just couldn't create out of thin air well then there wouldn't be these contractions or its all time to do would be a nice even playing field most people think that we are money is kind of backed by something important knox uh... who have asked to go see the golden fort knox they can go see the golden fort knox uh... pat so you know some surprising because when we think that congressman and so i don't understand why they might know what you see it might wanna take something out with me fully the the largest collection of gold is here at the federal reserve the right akeli and that's not american money that's the feds that's the fed's in a lot of what the fed for new york fed reserve keeps his gold for other people right like there might be goal for the bank of england here in new york that they're keeping i'm a quite often just put on the card moving from one person's account to another ever do you believe we have golden for not coming allot of golden for knots still there i think it's very naive to think that we have an equal there for the reason you said if they have it they would show it it's a simple is that ok but they don't have any guilt back in just a sec dont interdisciplinary gas the deanne regrets that he is the author of the creature from jekyll island which is a book you must and then mark la brea he is the director of financial regulation studies at the cato institute let me go to uh... edward here for this question uh... e whenever you go and talk about the fat it immediately goes into crazy town dot it immediately goes to and then full wrongs piles took a bottle of wine and kept little orphan children in there while they were sacrificing virgins involved you know then do you hear this crazy stuff the truth is scary enough witnesses come from or when you look at what the people feel compelled to go down into crazy town when just sticking to these facts alone should petrified people or do you believe it is a very well the answer to that well i don't know the answer to that i do know that what you say is uh... true although i find it less and less true i think in the beginning when i first began to research this the reliable information on the fed was pretty hard to find so all you really had was this kind of garbage to choose from a lot of speculation a lot of fairy lot of fantasy but now there's quite a bit of hardcore information out there and i see that less and less of that is uh... in the way you think the report do you think this remember you're talking to the chief conspiracy theorist on planet earth i believe i bid up now um... the um... do you believe that this actually kind of works too their advantage you can you can just dismiss people well that's crazy when you say i want to look at the books of the fed i want to know who owns them explained to me who is the owner of the fed who is issuing all of this debt who's making all of these decisions or money um... and and show me your books they immediately etc and say all really gaidar novels is right woohoo well know that that was a fact budgeting that works to their advantage either of you thought about i think it very much does what they're trying to give you the perception is minutes monetary policy and we need to have a bunch of p_h_d_'s right it was this is just too complicated for you understand don't worry yourself trust us you know wall get it right we are you know we've got the public interest at heart how frightening were you when you heard greenspan in an interview say their stuff the c_b_o_'s and everything else that i don't even understand want that's one of the reasons for the secrecy i they or exterior to death that we will figure out that they don't know what they're doing and and and the whole gains the whole show will be up we will figure out that they don't know how to run economy they don't honor on monetary policy might help in all the secret you know it's not right that they haven't figured out that they they still think they've got a snug uh... edward the uh... when you look at the uh... of the fed uh... new any idea who's getting rich other i do they walk away at the end piles of money if we all lose the date are they still they're fine who was walking away with it i don't see it that way i think these people already have about as much money as they could possibly span they started off with that so much wealth in another mansion another jet another yacht doesn't make that much difference i think what these people are doing planets are taking the leverage of this powered this financial power and they're converting that into political power their vision now is much bigger than just making money there's a jimmy is really in terms of controlling nations any controlling society and control in the world we've all heard that freed famous phrase a new world order they use this phrase over and over again it's their phrase and they are really serious about it they're taking the money and they're buying up political leaders are buying up media outlets that buying up large organizations italy willingly breeze militias and so forth tell me how that cecil give me an example of where they're from buying up media organizations or aurelia brians all right here's here's how it works you know the human being is uh... uh... occurred animal we have following groups we followed leaders and so all that anybody needs to do to control the society is to control the leadership of that society through with these people call the power centers goes to the large organizations another the things that people belong to when they have leaders and they follow they respect their leaders were talking about political parties are labor union job search organizations obvious things so they know that if they can't dominate just the heads of these organizations that half of one percent of the population that isn't role of the power centers they've got the masses on the line it's so when you look at the tops of these organizations role in line with the federal reserve for the new world order and that sort of thing ok it is the membership it's at the top it's the cell inskeep principal of organized the organized welcome back bodies questions and then i'll ask you mark about about ronald reagan's is story is is that ronald reagan was kind of taken on that fed unraveling the cages and that fed taught him a lesson and he kinda went back in the line will get into that the same park uh... tell every ui edward is the author of a creature from jekyll island if you haven't read this book you into it um... are you surprised uh... edward on how many people are reading this book that's gotta be i mean hello you write this how long ago who has published in nineteen ninety five nineteen ninety four was the first year and i'm totally surprised because it's the big thick book as you know i thought to be good for door stop uh... amazingly him people that really had taken an interest and that's gotta be flying up ourselves 'cause i mean i don't mean this sincerely i probably have a hundred copies of my this myself because people come up to me haim and say gotta read this book and what do i have no no you carry this but i have no way and so i just i just take it um... and uh... it so that it's a bit it's an amazing read that you know most people have never taken this journey down uh... ought to go to ronald reagan here for singing with you market and and ask you because i've always heard that ronald reagan uh... you know after the nineteen seventies and and jimmy carter which was kind of a mild version of what i think we're foreign now uh... while it's still in it uh... and he came in and he wanted to change some things and the fed story is is that the fed taught him a lesson there's a lot of push back on the regulatory side and that's the reason if you remember that reagan apo reappoint volcker one time but he did not report in the second time in because at that point they were not getting along all that well by and they were pretty big differences policy this is a spike reagan was very supportive of voters efforts to bring inflation down most of the disagreements were really on the regulatory side uh... reagan in this treasure par but wanted to redo banking regulation awaited volker did not agree with as well as you main may or may not know that the regional presidents have to be approved by the federal reserve here in washington and so there were a number of people that what that reagan one to get appointed uh... to regional breeze peta reserve banks and these were hard money people these are people who were inflation fighters in uh... vocal vetoed them so he kept reagan's people out of the federal reserve system if people have been no one's story of the federal reserve that would turn their uh... error of the color of mine what would it be that would be what i call the mandrake mechanism that's the process by which money is created out of nothing input into the economy and withdrawn from the economy but that doesn't call cut your hair to turn white i don't know what it is when they said simple pitched when they said on capitol hill when burning he said we will not monetize our debt i got on the air that night said these already lying um... but it it you know what i do that's all i know how to do right and the modifies the debt but they're still claiming i don't know if they are now but they were few months back that there's uh... they are still clinical say we're not gonna mantra for what the pic are but they they get away with saying we're not printing money were just digitizing you might remember uh... there is that big interview with an acting he said they're right out well you know we're not creating the money they physically were pretty money but of course if i took something of bank account just here we're in the computer input no money in your county feel like you have more money so they were creating money electronically so he very nearly said we're not free more money and it was absolutely disingenuous me of course they're created more money if they work reveals a leave that we are uh... uh... headed for uh... i think real tough talk i think we're headed for for real tough time and i think we can potentially you mentioned you know um... bad version of car do it we have the potentially be back in the seventies sort of situation and reversed the word stagflation went away for a while what we might be looking at situation again we are happy to higher inflation and high unemployment amity how many people here with would just well with would be like the manna from heaven if we only hit the nineteen seventy two fifty could be like a hall how it's all ears but that is jimmy carter years that's fantastic your opinion on uh... can we get read of the possible technically possible because the federal reserve was created by an act of congress and it can be abolished by an act of congress what must happen before congress has the backbone to do that has to be a complete change in washington because by and large the people that are in office today very much beholden to this creature well but i'm not going to do it so if they have political agenda here if you have people who like you say ken can control for monetary policy you'll never get those people you'll never make that change they would control too much of the money i mean they could make the pain enormous and my wrong woman that that know you're quite right in fact we have the precedent for that during the their fight between uh... president jackson and the second bank of the united states the head of the uh... of the central bank which was that version of the federal reserve whose name is nicholas biddle and he fought back exactly that way when jackson tried to agenda rate support for getting rid of the second bank he said i will pull the country down he said the nation will fall the people will fall but the bank will not fall that would his exact quote and uh... he practically succeeded in doing that so you can be sure in a contest of this kind challenging the federal reserve power there's no question in my mind that they will pull up all the stocks and trying ruin the economy and then blame it on the fact w were challenging the federal answer uh... let me ask this one question from you market we have to take a break and that is uh... how much uh... how connected are the central banks how connected i mean how much when i saw them say you know what we're gonna be value everybody's money here for a while to help japan outlet wait wait don't you really couldn't talk to maybe i don't know the people of the world and they're just moving together as one central bank the central bank there really is a deep makers called that's been there since the beginning of for instance what they mean even among mainstream economists as gently recognized that the federal reserve new york's efforts to support british pound support the bank of england in the nineteen twenties help cause the stock market bubble here in you see that this be continued ever since we we want tens of money during the crisis two other central banks this is the problem is that they talk to each other you know so their constituencies protecting each other and make each other will good not essential listened with american public wants so i do think there's a real problem that they're not looking out for our interests as much as they look in a few inches for each other back in just the same dost system and we're back with g edward griffin and mark elaborate uh... and who will win one of the audience here receptive to leon and uh... a lesser would nicole uh... in your question about that enders on our public they flooded the time u_s_ currency tooling jump-started how much money it would have to be played into our economy there and like dollars their persons that g_a_t_t_ to have that same situation as they had in than our public the inflation rate she saw him in germany and that in the twenties were till off the charts i mean literally people were getting paid twice a day so that you can go to the grocery store before prices doubled uh... and uh... you know it literally be their cup of coffee and by the time you got your next couple coffee was more expensive the last couple coffee so we're talking eagles interest rates inflation double digits over the course of the day we have subah blake exams arms about what was very so it's certainly very feasible we or a long ways away from that i mean i think worst-case scenario for the united states is we're gonna start to see inflation in the high single digits i think that that's important because even at a two percent rate inflation which the federal reserve tells us price stability attitude percent rate of inflation over thirty years half of the value of the acid is wiped out so you know this sounds slowly erodes over time now obviously when you get to something like ten or twenty percent inflation you just rerun of the stay ahead keep to protect their wealth you have edward do you do you have any uh... uh... uh... point of context here on on the printing of money there now talking seriously about printing money as a way out of this unsustainable debt well that's always been there theory and they're just talking about it more openly now and uh... that's as i said a moment ago that starr only trek and uh... so we can anticipate fest tricks are going to to play but in terms of inflation high and not quite as uh... optimistic about the inflation rate and the horrors for has impressed by this two percent of three percent figure i believe that the the government is not telling us the truth about the true inflation rate and a lot of things you know thinkers i don't think i'm alone in this uh... obviously but what is the true rate i believe from what i can see that it's up clips pushing up to about twenty percent right now maybe not be that hard but that certainly is the rate at which gold is expanding and historically that's always been a very accurate measure over a long period of time but true inflation well you know that our connect over i don't know well here is that there is a thing everybody blow all the experts will tell me because they digitize the money and and most of the money is sitting in banks uh... uh... the you know these people these they're trying to clap serikandi they say we they got the banks have the money we want that money what the experts will tell you is well no we're not we're not gonna cause inflation because that banks the banks have that money and so it's not in the system italy is a problem with it pushed out into the system well the problem is not just inflation but if you are poor that money back you have to pull it back by half higher interest rates so how high do the interest rates have to be let's not talk about inflation let's talk about i'm going in to get a loan how high do the interest rates have to be too hole inside all of that money back in to the federal reserve do you ever been knighted during the early eighties and the prime rate got over it by twenty one percent right uh... insult one should start with we're going to see higher interest rates either because of inflation indoor the fed having to raise rates to fight inflation so i will tell you that i talk to art laffer uh... this is through years ago and i said art how high do they have to be any single and i'm not gonna give you number substantially than what we saw in the nineteen seventies and eighties my question again was how do you not stop the heart of the economy if you've got let's just say twenty five percent interest rate but nobody has an answer on that one so i would just i i wouldn't yet used you throw the economy the recession that's what happened in the early eighties we had a very deep fortunately it was a relatively short recession but is a very deep in painful recession we have in the early eighties and that was what the federal funds rate of just around twenty one first only works if you have a free market system of people who know who are willing to experience the pain and know how to go out and start business back in just a second just told reporters and twenty three iclicker um... and um... you just ask the question in the break i don't have anything right what order rightly do flannel comes crashing down if you haven't if you don't have anything isn't just starting out but i think you do need to be concerning fortunately for good or bad you're not too bad shape is people who are savers mean people we're really getting hit the worst by this are people who've been saved all their lives to renew your retirement but you hopefully have not enough time to plan against this you need to put your site in the first the most immediate thing you can do is build your own human capital because labor always be were something and brains will always be worth something uh... and hopefully they can if we can point out a way abutting a physical wealth is going to be something that you gotta find a way to protect yourself in hedge it fine you can look at a variety of commodities whether it's over a cold or whether it's even fit foodstuff three minutes land to the old days think ten to hold their value inflation women buckle up ness men buckle up whether there was a deleterious tv s_ t_ really is gold backs d_t_s_ not that's out there that is the electron address for a ride of the less the gold that's debacles the operative word i guess there is back uh... in on the federal reserve started out nineteen thirteen it had to have forty cents and gold for every dollar that they they issued we're not even at a one cents for every dollar that's issued so in in no way could you going to go on for your dollar bills now i think it important part we talked earlier about what would be people's change their mind about the fed i think a lot of people for dotnet up until nineteen seventy one when nixon took a softy international gold standard there was an anchor that kept that they kept the dollar so much stable and you really didn't see a burst of inflation history into a after that happened so if we did nothing but went back on a cold some sort of standard internationally you get a really big concern with it is about let's go back there kazan they had had a question here about the gold standard rate understand there is a fill in the north carolina house uterus real one to create a state based karan singh backed by gold and silver and utah just backed the just passed a bill the governor signed it saying we'll accept gold now or u_s_ dollars i don't know how they're going to get away with it but i want to go there and any to get back to a gold standard without massive pain goal that the state so one of the old standard like utah that idea bad i don't think it's absolutely great idea let me we can trust me can win the federal government to fix this the interest not come from someone who come from the states and let me give you the center of the it's even smaller than that they've gotten the answer is gonna come from you so many of the audience that will tease if we don't have anything what women do pioneers look at the pilgrims on the mayflower they had nothing they not only survive they thrive because they had a souther and they had gone what too somebody who actually has some answers for the answer not the federal reserve about america brunner