Lecture Summary: "The London Connection" from The Creature from Jekyll Island

Introduction

• Discusses chapter 20, "The London Connection" from G. Edward Griffin's book.
• Focus on the rise of the House of Morgan, its ties with England, and the Federal Reserve System.

Historical Context

• Post-Civil War Economy: Period marked by economic volatility.
• National Banking Acts (1863-1865): Established federally chartered banks with significant privileges.
  • Banks issued notes backed by government bonds instead of gold.
  • System was a precursor to central banking.

Economic Philosophy

• Midas Complex: Obsession with creating prosperity by generating more money.
• Jay Cooke's Pamphlet: Advocated for national debt as a "national blessing."

Financial Panics

• Four major contractions in money supply: Panics of 1873, 1884, 1893, and 1907.
• Inadequate bank reserves and suspension of specie payment.
• Legislative responses worsened the situation by allowing more fiat money.

The House of Morgan

• Rise of J.P. Morgan: Despite economic turmoil, Morgan prospered.
• Ties with England: Morgan acted as an agent for British war bonds during WWI.
• Council on Foreign Relations: Founded by Morgan, linked to British expansion ideals.

George Peabody and the Morgan Dynasty

• George Peabody: American merchant, established business in London.
• Junius and J.P. Morgan: Continued Peabody's work, formed Morgan's financial empire.

Relationship with the Rothschilds

• Potential Alliance: Suggestion of a secret relationship between Morgan and Rothschilds.
• Economic Survival: Peabody saved by Bank of England during 1857 panic.

The Federal Reserve and British Connection

• Benjamin Strong: First governor of the Federal Reserve Bank of New York.
• Montagu Norman: Governor of the Bank of England, close ally of Strong.

Secret Meetings

• 1927 Meeting: Agreement to inflate U.S. currency to support British economy.
• Consequences: Led to speculation, the 1929 crash, and the Great Depression.

Summary and Conclusion

• Impact on America: Deliberate inflation and economic policy favored England.
• Broader Implications: Actions contributed to U.S. involvement in both World Wars.
• Secret Societies: Involvement of those linked to Cecil Rhodes' secret society supporting British Empire expansion.

Conclusion

• John the Morgue: Concludes the reading of Chapter 20, invites listeners for the next chapter.