The Federal Reserve Raises Rates
Hauntings from The Creature from Jekyll Island

The Federal Reserve raised interest rates on Wednesday by a quarter of a percentage point to a range of 2.00 percent to 2.25 percent.

In a statement that marked the end of the era of “accommodative” monetary policy, Fed Chairman Jerome Powell said the removal of the wording did not signal a policy outlook change. “Instead, it is a sign that policy is proceeding in line with our expectations.” said Powell.

“The labor market has continued to strengthen … economic activity has been rising at a strong rate,” it said in its statement.

While interest rates have been held artificially low for the last decade, retirees and savers feel they have been forced to take unnecessary risks in the markets. And, many see the rate hike as a sign of inflation that could leave them with less money at the end of the month.

President Trump commented via Twitter that Fed officials are raising rates because the U.S. economy is “doing so well.” He went on to say “I’d rather pay down debt or do other things, create more jobs. I’m worried about the fact that they seem to like raising interest rates. We can do other things with the money.”

Where does The Federal Reserve get the power to raise interest rates? Well, that involves a history lesson, and it’s more than we have room for here. In fact there have been numerous books published over the years dispelling the magical powers designated to the Fed. One of the most noteworthy is The Creature from Jekyll Island – A Second Look at The Federal Reserve.

As the title hauntingly suggests, the creature is real, and it was born on Jekyll Island off the coast of Georgia. You see, the creation of the “Fed” was a secret affair conceived at secret meetings at a private club on Jekyll Island.

At the time the island was a private resort owned by J.P. Morgan and the Jekyll Island Club, hosting some of the wealthiest families in the world, with names like Rockefeller and Vanderbilt. It became an exclusive retreat for the wealthy with golf outings and hunting.

Along with the Morgans, the Rothschilds and Rockefellers were a part of the original “cartel” and the creation of the Fed. America’s central bank was created in 1913 and involved the federal government only as an agent for shifting the inevitable losses from the banks to the taxpayers. So, The Federal Reserve is not “Federal”, it’s private. And, as you’ll discover, they don’t have any “Reserves”.

The objective of the Fed was simple, to cut off competition from other banks and control the money supply. As their scheme progressed the cartel realized they would have to convince Congress that their purpose was to protect the public from losses, and so the bankers became partners with politicians to create the central bank.

As erie as that sounds… Another monster was created in 1913, the Internal Revenue Service (IRS). According to the IRS website, “the roots of IRS go back to the Civil War when President Lincoln and Congress, in 1862, created the position of commissioner of Internal Revenue and enacted an income tax to pay war expenses.”

Later in 1913, the 16th Amendment was ratified, amending the Constitution. This supposedly gave Congress the authority to enact an income tax, which was supposed to be temporary. We all know how that worked out.

Fast forward to 2018 and both the Federal Reserve and the Internal Revenue Service are alive and well. Both collect taxes from Americans, although the Fed’s tax is inflationary.

What does all of this have to do with you? EVERYTHING! When you think about it, our entire lives are controlled somehow by these 2 entities, and we really have no say so in the matter. Over the years many have tried to change the system and have failed. From Presidents to Patriots, all have come up short.

So, what can the average person do? It all starts with education. As a wise man and mentor once told me, “Once you understand, you’ll know what to do.”

If you want to learn more about the history of the Federal Reserve, we’re providing a special audio recording from G. Edward Griffin, the author of the book, The Creature from Jekyll Island – A Second Look at The Federal Reserve. It’s absolutely free when you subscribe to our ezine, Financial Intelligence, you can get it here.

Until next time, keep learning and take control of your finances.