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1 Where does money come from? Where does it go? Who makes it? The money magicians' secrets are unveiled. Here is a close look at their mirrors and smoke machines, the pulleys, cogs, and wheels that create the grand illusion called money. A boring subject? Just wait' You'll be hooked in five minutes. Reads like a detective story - which it really is. But if s all true. This book is about the most blatant scam of history. If s all here: the cause of wars, boom-bust cycles, inflation, depres-sion, prosperity. Your world view will definitely change. Putting it quite simply: this may be the most important book on world affairs you will ever read. "A superb analysis deserving serious attention by all Americans. Be prepared for one heck of a journey through time and mind.

2 " Ron Paul, member of Congress House Banking Committee "What every American needs to know about central bank power. A gripping adventure into the secret world of the international banking cartel." Mark Thornton, Asst. Professor of Economics, Auburn University; Coordinator Academic Affairs, Ludwig von Mises Institute "A magnificent accomplishment - a train-load of heavy history, organized so well and written in such a relaxed and easy style that it captivated me. I hated to put it down." Dan Smoot Publisher/Editor, Dan Smoot Report "As a career banker and president of a bank consulting firm, I thought I had a good understanding of the Federal Reserve. But this book changed the way I view our entire monetary system." Marilyn MacGruder Barn wall Grand Junction, Colorado HOW TO READ THIS BOOK Thick books can be intimidating.

3 We tend to put off reading them until we have a suitably large block of time which is to say, often they are never read. That is the reason a preview has been placed at the beginning and a summary at the end of each chapter. All of these together can be read in about one hour. Although they will not contain details nor documentation, they will cover the major points and will provide an overview of the complete story. The best way to read this book, therefore, is to begin with the previews of each section, followed by the chapter previews and summaries. Even if the reader is not in a hurry, this is still an excellent approach. A look at the map before the journey makes it easier to grapple with a topic such as this which spans so much history. THE CREATURE FROM JEKYLL ISLAND A Second Look at the Federal Reserve Third edition by G.

4 Edward Griffin American Media Dedicated to the next generation-especially my own brood: James, Daniel, Ralph, and Kathleen. May this effort help to build for them a better world. Seventh printing: May 1998 Sixth printing: September 1997 Fifth printing: August 1996 Fourth printing: September 1995 Third printing: April 1995 Second printing: November 1994 First printing: July 1994 Third edition: May 1998 Second edition: September 1995 First edition: July 1994 Copyright 1998,1995 and 1994 by G. Edward Griffin Published by American Media Box 4646 Westlake Village, California 91359-1646 Library of Congress Catalog Card Number: 98-71615 ISBN 0-912986-21-2 Manufactured in the United States TABLE OF CONTENTS Preface i Acknowledgments iv Introduction v I.

5 WHAT CREATURE IS THIS? 1 What is the Federal Reserve System? The answer may surprise you. It is not federal and there are no reserves. Furthermore, the Federal Reserve Banks are not even banks. The key to this riddle is to be found, not at the beginning of the story, but in the middle. Since this is not a textbook, we are not confined to a chronological structure. The subject matter is not a curriculum to be mastered but a mystery to be solved. So let us start Where the action is. 1. The Journey to Jekyll Island 3 2. The Name of the Game Is Bailout 25 3.

6 Protectors of the Public 41 4. Home Sweet Loan 67 5. Nearer to the Heart's Desire 85 6. Building the New World Order 107 II. A CRASH COURSE ON MONEY 133 The eight chapters contained in this and the following section deal with material that is organized by topic, not chronology. Several of them will jump ahead of events that are not covered until later.

7 Furthermore, the scope is such that the reader may wonder what, if any, is the connection with the Federal Reserve System. Please be patient. The importance will eventually become clear. It is the author's intent to cover concepts and principles before looking at events. Without this background, the history of the Federal Reserve is boring. With it, the story emerges as an exciting drama which profoundly affects our lives today. So let us begin this adventure with a few discoveries about the nature of money itself. 7. The Barbaric Metal 135 8. Fool's Gold 155 9.

8 The Secret Science 171 10. The Mandrake Mechanism 185 III. THE NEW ALCHEMY 215 The ancient alchemists sought in vain to convert lead into gold. Modern alchemists have succeeded in that quest. The lead bullets of war have yielded an endless source of gold for those magicians who control the Mandrake Mechanism. The startling fact emerges that, without the ability to create fiat money, most modern wars simply would not have occurred. As long as the Mechanism is allowed to function, future wars are inevitable.

9 This is the story of how that came to pass. 11. The Rothschild Formula 217 12. Sink the Lusitania! 235 13. Masquerade in Moscow 263 14. The Best Enemy Money Can Buy 285 IV. A TALE OF THREE BANKS 307 It has been said that those who are ignorant of history are doomed to repeat its mistakes. It may come as a surprise to learn that the Federal Reserve System is America's fourth central bank, not its first.

10 We have been through all this before and, each time, the result has been the same. Interested in what happened? Then let's set the coordinates of our time machine to the colony of Massachusetts and the year 1690. To activate, turn to chapter fifteen. 15. The Lost Treasure Map 309 16. The Creature Comes to America 325 17. A Den of Vipers 341 18. Loaves and Fishes, and Civil War 361 19. Greenbacks and Other Crimes 377 V.