system one of the most interesting saying about the federal reserve created on jekyll island off the coast of georgia back in 1910 a small group gathered to draft the federal reserve act. the if anything is the federal reserve bill was sold to the american people as a piece of legislation to control the bankers. they are the epitome of the great power centers they were busy writing the bill to control them. >> host: who are they?
>> guest: is editor aldridge that was not a banker but a politician spearheading the political side. >> but also the of father-in-law to john rockefeller. >> he was tied close to the industrial complex. probably the most important political figure short of the president will send. they represented the dynasty of jpmorgan, rockefeller, and had connections to a rothschild in england macs and paul warburg were there with connections to his brother from germany and the netherlands. it was a group representing
international finance. these are the epitome. they do there would be a move to control banking at congress to pass the law. instead of being stupid to say i hope they don't do too bad they said we will write to the bill. they went to juggle island, and nobody knew they were going, of very secret meeting. they deny that they went from many years but drafted the end of the federal reserve act than it took three years to get it through congress. >> william howard taft was president the six gentlemen aldridge, henry davis then
from jpmorgan secretary of the treasury president of national city bank had also from jpmorgan and also the partner representing the art rothschild from europe you said it was one fourth of the entire wealth of the world? biv mcintyre burma station tire world. the opinion of the journal list at the time. they were prominent figures they would talk about the jekyll island group and then the investment houses. they said the been represented directly through the power to the much the concentrated in the
investment firm's put it together. that concentration of wealth has only increased since then. >> host: was the federal reserve act at the time controversial? newspapers full of articles? >> it did receive publicity at the time. there was discussion people were aware the banks had influence. one aldridge released the legislation it was called the aldridge bill. nelson said don't do that. people know you are a republican and rich. don't call it that.
appear in the he had ego and said i am expected -- respective so he did. that is uncontroversial the started. stove then they pulled it back and read issued but then they have democrats but that was okay. people had the idea thinking they were herb blue-collar the bill sponsored by the common man so in the beginning it was a ploy eight? >> absolutely.
while the bill was debated some went before the public and did to viewed by journalist and said this bill they had written will not be good for business and bad for america. knowing full well they read that in the paper. the bankers do not want it. it must be good. >> host: in your book "the creature from jekyll island" what is your answer? >> it is a cartel. not a government agency.
it does have the power of government because it does give the power of the enforcement nothing different they and the banana or more sugar cartel. they drew up rules and regulations to self regulate then sent it to congress with the federal reserve act. that is why rethink it is it government agency said you go to prison but it is a banking cartel. >> when did you get interested in this topic? >> in the '60s.
what was the cause of inflation? so started to do research and never produced the documentary but eventually i got the box back out there is no great milestone -- milestone along the way. that it was an important topic to the future of our country. >> you write it "the creature from jekyll island" fdic is not insurance? >> it is hard to answer. the problem when you over insurer something to the point* of no risk at all,
then there is a tendency for what you insure against to have been. you have the store ensured $41 million and a burns down but i don't know. [laughter] it is called moral hazard. when a government agency guarantees the bank cannot fail and will take taxpayer money if they go belly up you are encouraging banks to make risky investments. what do they have to lose? they do not have to suffer the consequences. and fta see is not really insurance.
risky banks do not pay a higher premium. it is the same rate of moral hazard. those more conservative are making less money and reckless banks are making more money so conservative says we should be reckless. and that is a shorthand way to explain what has happened, next year the fed will be a 100 years old. it has been going on 100 years. >> host: what should be done in your view? >> there is only one thing. it is a cartel with the monopoly power it needs to be abolished. no other way around it. you cannot take the power
and not expect it to corrupt. bankers are politicians eventually they will be corrupted by it. the federal reserve system is a cartel. america needs to abolish its before it abolishes america to seven is that politically possible? >> not now. the average person does not understand it but it is becoming more possible with the passage of every month and year as more people wake up to the fact our banking industry is based upon fraud and all of the stimulus programs plunder the people as they come to this there
was practically no interest but now therein is end of the fed movements and the movement to abolish it is growing. i see that on college campuses. you can see people with placards end the fed. it is a new generation coming up. not now but the movement is growing and maybe in the next eight or 10 years it will happen. >> host: would you advocate for something to replace it? >> nothing needs to except on this banking. it is a cartel. individual but and that companies can sell without a cartel so let's return to honest banking