Podcast Episode Details

CREATURE FROM JEKYLL ISLAND - 3. NEW ALCHEMY: How Bankers Turn War into Gold - Edward Griffin

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(00:00:00) III. THE NEW ALCHEMY (11 - 14)
(00:00:40) 11. The Rothschild Formula
(00:39:51) 12. Sink the Lusitania!
(01:40:12) 13. Masquerade in Moscow
(02:24:49) 14. The Best Enemy Money Can Buy

The Creature from Jekyll Island: A Second Look at the Federal Reserve - G. Edward Griffin (1998)

Section 3: THE NEW ALCHEMY: How Bankers Turn War into Gold!

In Section 3 of The Creature from Jekyll Island: A Second Look at the Federal Reserve, titled "The New Alchemy," G. Edward Griffin argues that modern central banking has achieved what ancient alchemists could not: transforming the destruction of war into wealth for a select elite. Central to this is the "Mandrake Mechanism," a term Griffin uses for the ability of central banks, like the Federal Reserve, to create fiat money—currency unbacked by tangible assets like gold. This mechanism allows governments to finance massive wars without direct taxation or borrowing, using inflation as a hidden tax that devalues public wealth while enriching those who control the money supply. Griffin asserts that without fiat money, most modern wars would have been impossible, as sound money systems tied to gold required real resources or public consent, limiting conflict. He warns that as long as this system persists, wars will remain profitable and thus inevitable, driven by a transnational banking cartel. 

Griffin illustrates this through historical case studies across four chapters. In "The Rothschild Formula," he explores how the Rothschild banking dynasty pioneered war profiteering by financing both sides of conflicts, like the Napoleonic Wars, using insider information to manipulate markets and secure government debt. This model, Griffin claims, became a blueprint for modern banking cartels. In "Sink the Lusitania!," he alleges the 1915 sinking was orchestrated to draw the U.S. into World War I, generating massive war loans for bankers like J.P. Morgan. "Masquerade in Moscow" argues that Western financiers, including Wall Street banks, funded the Bolshevik Revolution to install a controllable communist regime, profiting from Russia’s resources and future conflicts. Finally, "The Best Enemy Money Can Buy" details how Western aid to the Soviet Union during the Cold War, via technology transfers and loans, deliberately built a formidable foe to justify perpetual military spending and debt. 

Griffin’s narrative frames wars as engineered for profit, not ideology, with fiat money removing financial constraints on conflict. He suggests that bankers manipulate both capitalism and communism to maintain a profitable dialectic, citing financial records and congressional testimonies, though critics often label his claims conspiratorial. Inflation from war financing, he argues, burdens the public while enriching elites, fostering inequality and unrest that fuel further conflicts. Griffin warns of a future where unchecked money creation could lead to economic collapse or a banker-controlled global government. He urges public awareness and monetary reform, like returning to sound money, to break this cycle. While polarizing, Section 3 challenges readers to see wars through a financial lens, exposing the Mandrake Mechanism as a tool of power that thrives on global instability. 

Overview
In Section 3 of The Creature from Jekyll Island, G. Edward Griffin unveils the "Mandrake Mechanism," the process by which central banks create fiat money, enabling governments to finance wars without direct taxation or borrowing. This "new alchemy" converts the destruction of war into wealth for bankers, as inflation transfers value from citizens to those who control the money supply. Griffin argues that this system has made modern wars not only possible but profitable, ensuring their perpetuation unless reformed. The section uses historical examples to show how banking elites orchestrate conflicts for gain, challeng

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Published on 1 month, 1 week ago