Jekyll Created Hyde

What happened here in November 1910 was a direct response to the Panic of 1907. [The Rude Awakening] May 16, 2023 [WEBSITE]( | [UNSUBSCRIBE]( Jekyll Created Hyde - J.P. Morgan - the man - got tired of using his money to bail out the country. - The Panic of 1907 knocked the U.S. banking system for a loop. - In November 1910, six men met on Jekyll Island to create the Federal Reserve. [[CHART] Could Inflation Hit 20%+ In 2023?]( Take a close look at this scary chart pictured here… What you see is the money supply in America… And as you can see, the number of dollars in circulation has exploded in the last few years. In fact, more than 80% of all dollars to ever exist have been printed since just 2020 alone! Which is why some say inflation could soon explode even higher than it is now, to 20% or more. And if you’re at or near retirement age you must take action now to protect yourself… otherwise you risk losing everything. [Simply click here now to see how to survive America’s deadly inflation crisis](. [Click Here To Learn More]( [Sean Ring] SEAN RING Dear Reader, Good morning from beautiful Jekyll Island, Georgia, where we’re holding [our livestream on Wednesday](. I’ve just met some of my most excellent friends and colleagues for the first time, including Jim. I’m thrilled about [Wednesday’s livestream and hope you’ll join us]( then. Some of you may still be asking, “Why Jekyll Island?” In today’s Rude, I will answer that question simply. This isn’t meant to be an exhaustive study. But I’ll tell you this: American financial history is one of the most exciting rabbit holes you can ever fall into. History Lessons Last Friday’s Rickards Uncensored meeting was a hoot and a half. I love contributing, but my guilty pleasure is listening to my colleagues tell their stories. Whether it’s Dan Amoss’s comprehensive analyses, Matt Insley’s charts, or Byron King’s excellent history lessons, I learn much more than I teach. (Shhh! That’s between us.) But Byron’s stories always make something click for me. Last Friday, Byron held up a book he was reading titled, The Panic of 1907. He went on to say the Panic led directly to the fateful meeting at Jekyll Island three years later. I had known that, but I never really understood it. My reaction was one every teacher hopes for in a classroom from a student: widened eyes, agape mouth, and a gasp of air—an actual a-ha moment. So today, let me connect those two events for you as Byron did for me. The Panic of 1907 The Panic of 1907, also known as the 1907 Bankers' Panic, was a financial crisis “with everything on it.” Bank runs, a stock market downturn, significant liquidity crises…. You name it…. It had it. The panic demonstrated the supposed weakness and vulnerability of America's banking system, which at the time lacked a central bank to provide emergency liquidity to struggling financial institutions. There were several triggers for the Panic of 1907, including the failure of the Knickerbocker Trust Company and speculators’ attempt to corner the copper market. Both led to a general loss of confidence in the banking system. This resulted in a bank run, causing a domino effect of bank failures due to liquidity shortages. During this crisis, financier J.P. Morgan emerged as The Man. He coordinated a response among New York bankers, contributing his resources and persuading other bankers to do the same. This shored up struggling institutions and restored confidence in the banking system. However, this ad hoc response exposed the supposed vulnerability of the U.S. banking system, which had to rely on private citizens to prevent a complete collapse. That’s the official historical conclusion, anyway. I think citizen-based ad hoc solutions are the best, as they are, by default, tailored to the situation. That is, we’re not constantly fighting the last war (like the Fed is doing now). The truth is, Morgan never wanted to do that again. Some might call that an evasion of responsibility. Officially, the Panic of 1907 led to the realization that there was a need for a more structured and formal system to prevent such crises - how’s that working out for us? - and to provide stability to the banking system. You know what they say about the best intentions. As a result, Congress created the National Monetary Commission in 1908 and tasked it with studying and recommending solutions for the banking and financial industry. Senator Nelson W. Aldrich, the head of the National Monetary Commission, led a team of experts to study European central banking systems (Shields up! Red alert!). After taking leave of their senses, those “experts” developed a proposal for a similar system in the United States. The result? The Federal Reserve Act of 1913. But first… [America’s #1 Economist Bets Big On Gold, Says Now Is The Time To Buy!]( Jim Rickards is widely considered to be the #1 living economist in America. Throughout the years, he and his team have issued a number of bold calls which turned out to be 100% accurate: - They predicted the 2008 housing crisis years in advance… - They predicted Brexit and Trump’s 2016 victory… - They predicted Covid-19, months before the first case originated in China… - And much, much more. But none of that compares to Jim’s urgent new prediction… [Jim predicts gold is now entering into a super boom phase, one which could last for years and push the price of gold to $15,000 an ounce or higher.]( In fact, Jim is so certain that he’s already bet a significant amount of his own money on gold – and today, he’s on a mission to show everyday investors like you how to get started. [To see the exact steps to take to profit as gold soars higher, click here now.]( [Click Here To Learn More]( November 1910: Jekyll Island The Jekyll Island meeting in November 1910 was a secret gathering of six men representing the bigwigs from Wall Street and the U.S. Government. This meeting was instrumental in creating the plan that eventually established the U.S. Federal Reserve System. The six men who attended the meeting were: - Nelson W. Aldrich: A U.S. senator from Rhode Island and chairman of the National Monetary Commission. - Abraham Piatt Andrew: Assistant Secretary of the U.S. Treasury. - Frank A. Vanderlip: President of the National City Bank of New York (predecessor of Citibank). - Henry P. Davison: Senior partner of the J.P. Morgan Company. - Charles D. Norton: President of the First National Bank of New York (another predecessor of Citibank). - Paul M. Warburg: A representative of the Rothschild banking family in Europe and brother of Max Warburg, who was head of the Warburg banking consortium in Germany and the Netherlands. The Usual Suspects, I suppose. These men met privately on Jekyll Island, Georgia, under a veil of great secrecy, using only first names or code names. The goal was to devise a plan to reform the American banking system, which was seen as unstable and prone to crises and which J.P. Morgan no longer had any interest in bailing out. Their proposal called for creating a central banking system that could provide an elastic currency (i.e., a supply that could expand or contract as needed), serve as a lender of last resort to banks in trouble, and manage the country's monetary policy. Of course, the problem with elastic currencies is they seem to expand forever, with fits of contraction, until they fall to their intrinsic value: zero. The plan faced significant opposition from those who feared it would create a banking monopoly controlled by Wall Street interests. The opposition has obviously and conclusively been proven correct. To address these concerns, the plan was revised to incorporate a decentralized structure with multiple reserve banks spread across the country and a governing Federal Reserve Board with members appointed by the President and confirmed by the Senate. Well, this didn’t help. The New York Fed is where all the real decisions are made. This revised plan was adopted by Congress and signed into law by President Woodrow Wilson as the Federal Reserve Act in December 1913. Wrap Up I don’t think the Federal Reserve’s creators were necessarily evil. Well, not all of them, anyway. But we can’t control our creations, especially when we send them out into the world. Robert Louis Stevenson, author of The Strange Case of Dr. Jekyll and Mr. Hyde, once wrote, “Jekyll had more than a father's interest; Hyde had more than a son's indifference.” Mr. Hyde is beyond our control for now. Have a great day! All the best, [Sean Ring] Sean Ring Editor, Rude Awakening P.S. You still have plenty of time to sign up for [Jim’s and Danielle’s livestream here](. Hope to see you there! Clicking the link above automatically registers you for The Secret of Jekyll Island Livestream Broadcast, but does not obligate you in any way to attend the event. By reserving your spot, you will receive event updates. We will not share your email address with anyone. And you can opt out at any time. [Privacy Policy.]( In Case You Missed It… The Devil’s Down in Georgia [Sean Ring] SEAN RING Dear Reader, Happy Monday from a still-dark Jekyll Island! I tried to pump out something before I crashed last night. But Mr. Sandman demanded I sleep, as I had traveled from Milan to New York to Jacksonville to Jekyll Island in one crazy day. So nuts was my day, I’ll tell you all about it. Then, when the rest of my friends and colleagues get here, I’ll get back to business. Warning: the Rude may smell of single-malt Scotch this week. Before I start: some of this Rude may sound like a moan. I assure you I’m thrilled to be here at Jekyll Island, in all its ethereal beauty. Wake Up Call “Does my phone really read 06:37?” I asked myself yesterday morning. It was rather inconvenient, as check-in time was 07:00. Thus started what would become the pattern of the day. Fits and starts and rushes around, trying not to miss flights. I took a three-minute shower, brushed my teeth, packed what I needed, and ran out of the hotel. Luckily, Matt Insley put me up in a hotel adjacent to the airport terminal. Even at my advanced weight, I made it to the check-in desk at 07:05. I was pretty impressed with myself. As I’m a conscientious traveler, my documents are always in order. Before boarding, I only needed to pick up the single malt I had been ribbing the team about. Nothing raise my hackles more than… seeing whisky spelled with an “e.” When whiskey is spelled like this, it means the Irish or, heaven forbid, the American stuff. I prefer “whisky,” which means Scottish stuff, or just plain Scotch. So when we were talking about the trip and the team mentioned a Whiskey Bar, I knew I had to do something! So I picked up a bottle of Laphroaig Four Oak to start. Known to its friends as “Froggie,” Laphroaig packs a peaty punch. And no, Lagavulin was not available in the duty-free shop, if you were wondering. Then, a bottle of The Balvenie stared at me from the top shelf. I first drank The Balvenie at Mehrangarh Fort in Jodhpur, Rajasthan, India. Rudyard Kipling called the fort “the work of giants,” and the Indians call it “The Citadel of the Sun.” It’s an incredible wonder of architecture. My boss Alex asked me to teach a seminar there back in 2018. He brought that bottle. I fell in love immediately. With the whisky, not Alex. I try never to be snobby about booze. But if you’re going to be, getting snobby about whisky is worth it. That part of the mission was accomplished—time to get on the plane. The Flight to NYC For some reason, I love dystopian Japanese-themed films and movies. Perhaps it’s because they have an exactness of design, a melancholy, and a fatalism about them I simply don’t possess. Whether it’s The Wolverine, Altered Carbon, or The Ghost in the Shell, I eat it up. It’s also the reason I love the John Wick franchise so much. Weird, but true. So I had to watch Bullet Train with Brad Pitt and Aaron Taylor-Johnson. It was a hoot, though I don’t think it’s for everyone. Then I passed out for about 5 hours, thank heavens. I had had a terrible three hours of sleep in the hotel, so I was thrilled when I woke up and saw that we were only 90 minutes away from JFK. So I ate my breakfast, and we descended into the world’s dumbest airport. [Do you live in one of the states listed?]( You must [watch this urgent warning]( immeditaly. (You Need To Learn About AOC’s “Green New Scam” In Order To Opt-Out) To learn the single most important move you need to make to protect you and your family this summer... [Click here now]( the play button above. [Click Here To Learn More]( What Are They Thinking in JFK? As I arrived at the Immigration Hall, I thought, “This can’t be real.” No kidding: at least 1,200 people, by my conservative count, were waiting to be processed. And they were just standing there! It seems “da union” doesn’t get its people in until the entire hall is clogged. But for the first fifteen minutes, I might have moved ten feet. My flight to Jacksonville was still two-and-a-half hours away, so I wasn’t worried. But after an hour, I asked to get moved up front, so I wouldn’t miss my flight. Much to my relief, they obliged. I passed the Immigration officer’s test with flying colors, and he let me in. I don’t know if you know this, but the USG has this stupid rule. If you’re flying into America from abroad and have a connecting domestic flight, you must pick up your luggage and check it in again. It’s the dumbest thing ever. So I did that, and the guy barely looked at my tag before dumping my bag on the luggage belt. I thought, “What’s the point of this exercise?” Then I realized I was outside the airport - where they put this conveyor belt - and I had to go back through security. Of course, that took another hour. Once I got through security, who meticulously checked whether my Scotch was plutonium, I checked my gate. B55. And how many gates are in T4 at JFK? 55. So it was time to revisit my track days to ensure I made the gate. I did, with 15 minutes left until takeoff. Luckily, they let me on the plane. The flight was smooth but cramped. JAX Is Almost a Perfect Airport Did you ever land at an airport and remember that you’d forgotten something essential? As I stepped off the plane in Jacksonville, I remembered that I had to pee since I landed at JFK. Luckily, I hadn’t exploded like Monty Python’s Mr. Creosote and quickly found the men’s room. JAX is a lovely airport but has no restaurants after the baggage claim. Ugh. I was hungry at this point. Fortunately for me, Paradigm’s very own Miss Moneypenny, the perfectly named Lydia England, was landing right within the half-hour. The Ride North With Moneypenny Lydia organized this week for us, so I knew I was in good hands. She flew down from Baltimore early to get a headstart, ensuring everything was just so. Blonde-haired, cheery, and ready to rock, Lydia had rented a car for us to drive the hour north from JAX to Jekyll. What a pleasant ride - and a pitstop at McDonald’s to boot! (See, I’m not a snob about everything.) The sky was clear, the temperature was perfect, and the road was wide open for us. Arriving on Jekyll Island In no time at all, we arrived here at Jekyll. Lydia noticed the Spanish Moss dangling in the wind from the larger trees. It’s every bit as exotic to me as the trees growing at Ta Prohm temple at Angkor Wat. (Think Tomb Raider.) The Jekyll Island Club and Resort hotel is as Old South as this Joisey boy can imagine. I checked in and was quickly off to bed. Wrap Up Of course, the reason I’m here is our livestream. If you haven’t signed up already, I’ve made a trip for nothing! Just kidding. I want you to join us because, well, where else will you get [Jim Rickards and Danielle DiMartino Booth chinwagging]( about the state of the world? It’s all for you. Free. Gratis. Gratuito. And no hard sell at the end. Like Rickards Uncensored on steroids. [Sign up here]( if you haven’t already. Last time I checked, over 11,000 people are taking a [two-hour lunch]( this Wednesday at 1 pm to hear what Jim and Danielle have to say. I can’t wait, myself. See you there! All the best, [Sean Ring] Sean Ring Editor, Rude Awakening ‘Secrets of Jekyll Island’ A LIVESTREAM Broadcast with Jim Rickards & Danielle DiMartino Booth [Jekyll Island] On Wednesday May 17th at 1pm EDT you can watch live, exclusively through your access link from the comfort of your own home, as two of the world’s foremost thought leaders deliver world class economic insight. 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