The Creature from Jekyll Island: Chapter 5 - Nearer to the Heart's Desire

Bretton Woods Conference (1944)

• Held in Bretton Woods, New Hampshire.
• Established the International Monetary Fund (IMF) and the World Bank.
• Aim: Eliminate gold from world finance and establish world socialism.
  • Replace gold with a politically manipulated paper standard.
  • Allow governments to create money without devaluation penalties.

Role of the Federal Reserve

• Functions as a lender of last resort domestically and internationally.
• Facilitates bailouts that exploit public funds via taxes and inflation.

Gold vs. Paper Standard

• Bretton Woods: Attack on gold-based currency exchange.
• Previously, currencies were exchanged based on gold value (Gold Exchange Standard).
• Politicians and bankers disliked this due to lack of control.

Creation of IMF and World Bank

• IMF: Promotes monetary cooperation, maintains fixed exchange rates.
• World Bank: Loans for reconstruction and development in war-torn/underdeveloped nations.
• Goal: Shift from gold to a fiat currency system.

Fabian Socialists and Communists

• John Maynard Keynes (Fabian Socialist) and Harry Dexter White (Communist) were key figures.
• Fabians: Gradual socialism through propaganda and legislation.
• IMF and World Bank seen as tools for global socialism.

Structure and Funding of IMF

• Independent from the UN despite appearances.
• Funded by quotas from member nations, with the US contributing the most.
• Uses Special Drawing Rights (SDRs) as its monetary unit as of 1970.

Paper Gold and SDRs

• SDRs: Bookkeeping entries, not physical money.
• Allow creation of fiat money, leading to inflation and wealth transfer.

Abandonment of Gold

• 1971: US dollar detached from gold standard.
• IMF adopts dollar as the international currency.

Trade Deficits and Economic Impact

• Trade deficit: Country imports more than it exports.
• America can finance trade deficit with fiat currency due to dollar's international acceptance.

IMF Loans and Economic Policies

• Loans often go to state-run industries, leading to inefficiency and corruption.
• IMF evolves into a world central bank, with loans fostering socialism.

Impact on Underdeveloped Nations

• Loans lead to nationalization and socialism, hindering economic growth.
• Examples include Tanzania, Argentina, and Brazil suffering from economic decline due to mismanagement.

Corruption and Waste

• World Bank projects often result in environmental and human displacement without economic benefit.
• Politicians and middle managers benefit while the poor suffer.

Conclusion: Hidden Agenda of World Socialism

• The IMF/World Bank seen as instruments for redistributing wealth and fostering government control.
• Aligns with socialist ideologies, often to the detriment of economic stability.
• Calls for abolishment of systems like the Federal Reserve due to their role in global socialism.