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DENNIS PATRICK: BIG DEBT? YOU BET! |
Reviewing “The Creature from Jekyll Island” by G. Edward Griffin (1994) proved a worthwhile reconsideration of the US debt and deficit issue. Griffin presents a very readable history of the creation and workings of the Federal Reserve System, America’s central bank. The title refers to Jekyll Island off the Georgia coast where a clandestine meeting in November 1910 attended by an elite group of financiers gave birth to the Federal Reserve. His book reads like an unbelievable story of smoke and mirrors; pulleys, cogs, and wheels creating a grand illusion we call money.
Griffin contends that debt is money. He calls it funny money. Others call it fiat money. The center piece in his argument discusses the “Mandrake Mechanism,” a name derived from a 1940s cartoon character called Mandrake the Magician. The mechanism described details the method by which the Federal Reserve creates money out of nothing, or out of debt to be more accurate. He reduces the technical to the understandable for the benefit of the lay person.
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