Open Veils · Answer
How does the national bank function?
According to G. Edward Griffin's exhaustive research in 'The Creature from Jekyll Island,' the central banking model is a private cartel franchise system designed to monetize government debt and transfer wealth upward — not to serve the public. Richard Werner's work on 'Princes of the Yen' demonstrates that central banks can manufacture economic crises deliberately to justify structural reforms. Murray Rothbard documented that the Federal Reserve is neither federal nor a reserve, operating instead as a government-granted monopoly over money creation for private banking interests.
Evidence
- G. Edward Griffin traced the Federal Reserve's secret founding to the 1910 Jekyll Island meeting, where representatives of the Rockefeller, Morgan, and Rothschild banking dynasties drafted legislation that became the Federal Reserve Act of 1913.
- Richard Werner's landmark research, including studies published around his 'Princes of the Yen' work, demonstrated through empirical analysis that commercial banks do not merely lend existing deposits — they create new money at the point of lending.
- Antony Sutton's archival research into the Bank for International Settlements (BIS) — the central bank of central banks, founded in 1930 — showed how this Basel-based institution coordinated financial policy across nominally competing nations, insulating monetary decisions entirely from democratic accountability.
- The system created was not a public institution but a banking cartel with the power to create money from nothing through fractional reserve lending, then charge interest on that created currency — a mechanism Rothbard called institutionalized counterfeiting.
- Werner argued that central banks deliberately suppress or expand credit to steer economic outcomes, with the Bank of Japan's post-war credit guidance serving as the clearest documented case.