We are witnessing the "birth bangs" of yet another failure on road towards "The New World Order"...
“This confrontation [between the forces of the Apocalypse and Israel] is willed by God, who wants to use this conflict to erase his people’s enemies before a New Age begins”. U.S. President George W. Bush (in a 2003 conversation with French President Jacques Chirac)
“Preventive war was an invention of [Adolf] Hitler. Frankly, I would not even listen to anyone seriously that came and talked about such a thing.” Dwight D. Eisenhower
The most profound quote ever on creation of money
."The central bank is an institution of the most deadly hostility existing against the Principles and form of our Constitution. I am an Enemy to all banks discounting bills or notes for anything but Coin. If the American People allow private banks to control the issuance of their currency, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the People of all their Property until their Children will wake up homeless on the continent their Fathers conquered."
— Thomas Jefferson, Founding Father, Third President of the United States, and the principal author of the US Declaration of IndependenceTwo centuries later the Congress is still lost while this crown jewel has been sitting right under their noses. This is unbelievable!
After hundred plus years of debating they took the "gold oozing" path in 1913 and allowed the foreign mostly European private banking empires to create the Federal Reserve Bank of the USA, short FED. The name is so misleading that most Americans have lost the truth and do not have even faintest idea that FED is not a government institution but a private for profit corporation. That is the reason that no outsider including the US Congress has never seen it's real accounting books! There is an overwhelming amount of sophisticated data in there. Whenever something of it is released it will of course be tailored to support their case it closes the mouths of most Congress members.
It's astonishing power comes from it's ability to totally independently to determine the US interest rates.
It's hand must have been behind the move that made the US dollar the only reserve currency of the world.
Since it's interception the corruption and bribery have been inseparable from the US politics.
There is no corruption, deception or even bribery in the US politics related to FED or any other prominent organization you will hear. Don't believe as most of them are outside to power circle and they are just BS shovelers doing their highest duty that is shoveling BS:
- How come we ended up having the great depression in 1929. It was a direct consequence of the FED's high interest rate policy that was aimed against the Bank of England to take over their gold reserves. That worked exactly as planned but the price was the great depression and enormous misery for most people in the USA while the wealthy multiplied their wealth!
- Several of the banking empires behind of the FED are established by families rooted into Zionism. This is not an attack against Zionism just a statement telling the origins of the families who own several of these private banking empires. Here is another alarming activity in the US Congress that most people never notice as the coherency surfaces only when issues are related to Judaism or Zionism are voted on:
- From the US population of 310 million about 1% are Jewish ( Zionists) by birth.
- Their representation in 110th US Congress was as follows: A) Senate 14 from 100 = 14%; B) House 30 from 435 = 7%.
- Here is an example of voting results giving green light to the israeli government to expand outpost extensions to the Palestinian lands Article in FT, May 29, 2009): A) Senate for expansion 76 of 100 = 76%; House for expansion 329 of 435 = 76% also. When the majority of the Americans oppose these settlements then how can the Congress support them? This makes sense only one way. The election process to the US Congress is either rigged or the money in the campaign coffers of the opponents remain "unlimited" until the leading candidate who thinks him/herself runs out of funds.
- History has some examples also. The Zionists organized massive campaigns against the German products sold in the USA after the first WW. THe retailers had two options: 1) take everything manufactured in Germany out, of 2) face a total boycott and bankruptcy. In fiercely competitive environment only about 5% drop in sales will have a disastrous outcome.
- During the past centuries organizing the Zionists has evolved to an art bypassing every other ethnic group by miles. Here is an example from the handbook for a "JAP" regarding work opportunities after the college: "The Princess has a jump on the thousands of college grads entering the market every June. The Jewish network has more jobs than the NY Times want ads. Additionally the Members of the Tribe can get them in the doors that resumes can't."
The agriculture changed the human history and created the class of land owners
During the past 5,000 years the World has been under 17 different known empires lasting for about 300 years as an average. The current ruling Anglo-US empire is already 300 years old and has adopted the exacting hostility pattern towards the imagined enemies in the World than the 16 previous ones just before their final down fall.
The nobility of the current Anglo-US empire has grown megalomaniac and lost interest to common good, thinking only their own well being and pleasures. Without change this this Anglo-US Nobility is doomed as the wheels of the justice are already in motion and are becoming unstoppable.
The wars used to be a solution to everything over the past 5,000 years and we are still employing them at alarming rate.
However, radio and WW II, did and all what followed has changed it all. The correct information that stayed solidly inside the Palace walls in now actually solidly outside the Palace walls and those inside are becoming more and more confused.
The revolutionary ancient discovery made public by Albert Einstein
Albert Einstein was spreading the knowledge of the most destructive power in human hands when he stated: “Compound interest was not only man’s greatest invention, but it is also the most powerful force on Earth!” He continued, "when you borrow money it works against you when you lend, it works for you".
The simple process of compounding interest has the power to change the world but so far over all the 16 past empires only the nobility had ever grasped the full meaning of this very simple math.
With compounding interest and 300 years (the average age of the 17 empires) a bank collecting 5% interest on an imagined US$ 1 loan will have US$ 2,273,996 million after 300 years. If the interest rate is raised to a still normal 10% this bank would have US$ 2,617,010,996,188 or US$ 2.6 Trillion. If the bank would use the same predatory practices than the US credit card companies apply to all who fail to pay in time, the 29% interest they charge would cause our little dollar to grow to US$ 1.5*10^33, or a sum that forms when we write firs 15... and then add 32 zeros.
Unfortunately only few of us have ever fully understood the true power behind this short story. It has also a twist that the Nobility has used ever since they discovered that a bank does not need to have full collateral on the depositors - they can issue written piece of paper that promise the owner to get the promised amount of money from bank at will. This discovery opened the pandora's box.
The Roan empires used similar discovery when they changed the coin content from gold to silver and further to copper, etc. People quickly saw through this trick and started first demanding more of these false "gold" coins. Later on they simply refused to accept these new "gold" coins in exchange to their goods.
With the bank notes as accepted currency today the today bankers can quickly gain a controlling stake in any economy or even the world if we the people do not control them. For this reason the central bank of a country must be under the control of the government. A private bank should never be allowed to be in charge of any economy.
Contrary to these valuable lessons from history, the US Federal Reserve Bank or FED, is a private bank and it is in charge of the US economy. It took almost 100 years lobbying to get the US government to yield and give the ownership to FED to a group of major private banks from Europe led by the Rothschild's banking empire to establish this FED in 1913. How many of government officials can claim that they have ever seen the books of this private bank?
The bankers of the Anglo-US group should know the history.
With preparations to trouble they had created and cultivated a state we call Israel to become their hammer and creator of local conflicts. A conflict or preferably a war using superior weaponry is the best way to destroy the property of the perceived enemies and with that send their nations back in time up to 20 to 30 years per incident. This was great business and used by all the 17 empires all this is now lost with invention of silicon chip that can be programmed to do simple manipulation of 1:s and zero:s.
The ability to control the manipulation is not in the hands of the degenerated elites but in the hands of brightest of the young people coming from all walks of the life. They come from rich and poor families at about the same rate. They only need education and with that they all are suddenly in control of it all.
Regardless of what kind of trade barriers were installed to prevent the new technology from spreading it was no more possible. The change went through the world like a whirlwind. The new threat from the East was suddenly by far superior over anything the cultivated hammer of Israel could ever master. Even the local "piece of cake" conflicts like Georgia, Iran, etc have become totally questionable.
The Anglo-US empire has realized that it is no more in control of the world regardless how many bases and countries they have in their camp. The outcome of any conflict today is totally unclear without knowing what Russia and India would actually do. Russia was not weak enough even after the West had "helped" them out from communism - the price of oil rose high and that wrecked the this master plan of the Nobility.
The Nobility was smart in high level thinking and they created a back-up plan just in case...
About three decades ago the nobility in the USA recognized that the era of supercomputers might give them a golden tool, like "SAMPO", that could keep them in power forever.
Without delay ENRON became their laboratory. This US$ 60 billion company was put in play to develop an approach to gamble with all commodity, index and equity margin contracts of the world, by betting daily items and group against the others regardless their logical relationships. This led US$ 32.8 billion capital loss and bankruptcy. The workers became penniless when they lost their work and pensions all in Enron shares, after years of court drama the least guilty were jailed while the planners of it all had disappeared.
This laboratory experiment was actually a huge success as it teach how to build a real game when the game board was the entire financial system of the World! The global derivatives game was born.
There is no logic why we need a US$ 600 TRILLION worth of derivatives to protect the global trade nor anything else. The Global Gross National Product is only US$ 60 TRILLION. The foreign trade is tiny compared to this amount of money money, in reality it is only a small percentage of this US$ 60 TRILLION.
This derivatives game has nothing to do in stealing trades from slower computers while they were still executing them, like the Goldman Sachs' doomsday machine. This is something else that is still largely hidden out there. We know that the players are powerful as the Anglo-US legislation is paralyzed, incapable of doing anything to stop this game. Stopping it on tracks is simple: Force all contracts to be traded through recognized trading platforms and if that would not help then doubling, tripling, etc of the margin requirement would certainly stop it all.
Towards the end of their reign all these 17 previous empires have resorted to desperate military activities to support their nobility. The military campaigns are aimed to maximum destruction of all property of the private citizens - bizarre but this destruction is what the nobility wants! When it all is over this nobility still owns most of the productive land and as their money is always scattered around the world they just bring some of it back and restart their income engine.
Here is another bizarre example from Sweden, one of the most revered democracies in the world. Consider moving e.g. to Stockholm. In Sweden buying houses or even apartments is totally out of reach of the ordinary people. The Swedes have been let to believe that the right to live (rent) is the same as owning the house or the apartment. The Swedes are willing to pay for this right to live more than twice the price one can actually build it to almost any luxury level. In the better locations in Stockholm this right to live (rent) can be bought for about SKr 100,000 per square meter or about US$ 10,000 per square meter. This means that the right to rent for a small apartment of 100 square meters (1,100 square feet) will cost US$ 1,000,000. If you do not have the cash you have to borrow the money and in addition you have to pay also rent for the actual owner of this place (apartment). The Swedes see nothing wrong in this picture! -> artcile in Swedish.
The Voters have lost control in the USA
The size of the derivatives game is such that the goal of the players is the global domination. They appear to be just lunatics as they do not realize that controlling the USA and few of her closest allies would fall by far short in power to control the 6.8 billion people on the planet.
Here is the wake-up call for all AMERICA!
Our republic has been hijacked by a foreign influence. We woke up to this on May 29th, 2009 when the Financial Times of London published an article covering a special Congressional vote and action on the President Obama's Middle-East policies. The results was given to President as a Congressional non-binding Advisory. The peculiar issue here is that not even one of the US news sources TV or paper has mentioned this so far.
The AIPAC has been long rumored to be a major power in the US politics. AIPAC is a foreign lobby organization allowed to work with US Congress. It's is well understood on the streets of America that to get elected into US Congress one must get the blessing from the AIPAC. This AIPAC represents the interests of a foreign country, that are often not the same as the interests of the USA!
The table below shows the racial composition of the 100th US Congress. There are some oddities like why do the Blacks, Hispanics, Asians and Natives have slightly less than 17% of the seats in the House and only 5% of the seats in Senate when they together represent 37% of the US population, and why do the Jews with their share of about 1% of the US population hold 7% of the seats in the House and 14% of the seats in the Senate?
Unfortunately the information of the current Congress in similar fashion is not available - can you guess why?
Racial Composition of the 110th Congress (Representatives Total: House =435; Senate = 100) White Black Hispanic Asian Jewish / Zionists (=Khazars) Native American
(FT: vote on May 29, 2009) Congress still favors Israel and her outpost extensions on Palestinian lands For the Israeli Regime For Palestinians / Absent The outcome of the voting above is against all common sense, UN resolutions, and against every global opinion poll in every country including Israel. Then both the Senate and the House voted the exacting 76% for and 24% against the Israel's position to have free hands to expand settlement to Palestinian lands. The alarming outcome is that the Israeli lobby has apparently, in theory, the votes to change the US Constitution. The President's Veto would be overruled and the 317 million other US citizens out of 320 million could do nothing to prevent it. We know that those 329 members of the House and 76 Members of the Senate are receiving a comfortable support from AIPAC and/or it's members at large.
Before doing too much Jew bashing one must be aware that the so called Jewish camp is actually three camps, one that consists of the original Jews with ethnic connection to the old Israel lands and everything Jewish; the second group are descendants of warrior tribes who converted themselves to Judaism as Ashkenazi Jews or Zionists for political reasons to survive between the Islam and Christianity during the first millennium in the plains of Khazaria between the upper parts of Black Sea and the Caspian Sea with ambitions reaching outside their borders; the third and most powerful groups are the descendants of the ruling class from whatever is left from Khazars. This group still holds their warrior time beliefs of being superior over all other people on the planet and are the ones who seized the opportunity when the State of Israel was established or actually planned it all(Balfour Declaration) and are currently running the State of Israel and it's policies around the globe.
Today the global mix of the Jews is reportedly 10% of ethnic Jews and 90% Zionists or Khazars. These two groups appear to have strong opinions from each others and prefer some distance between them though they still act together.
How far has the Zionist control over the USA progressed? Just read the following on record that is related to the UN resolution to condemn Israel's attack against the people of Gaza Strip in December 2008. The three following quotes are from the at the time Prime Minister Mr. Olmert’s speech. According to Olmert, he called the White House upon hearing of the upcoming UN Security Council resolution: "I said, Get me President Bush on the phone. They said he was in the middle of giving a speech in Philadelphia. I said I didn't care: I need to talk to him now. He (the President) got off the podium and spoke to me," Olmert said, according to multiple media reports. As a result of his conversation with President Bush, Olmert claimed, "the president called Rice and forced her to abstain from voting on the measure, which she herself had helped author. He gave an order to the secretary of state and she did not vote in favor of it, a resolution she cooked up, phrased, organized, and maneuvered for. She was left pretty shamed and abstained on a resolution she arranged."
President Obama is less powerful than it looks. The Jewish vote is in power position in almost anything in the Congress. The answer to the question, "Has some group really control over the USA" is a sound yes - the Congress of the USA is under the Zionist rule! It remains to be seen how long it takes for the American people to wake up! Regardless of the apparent financial power of the Zionists, the real muscle and power still resides in the hands of the physical and able bodies. The money was the reason why Louis XIV stated: "who has most money will always win the war". His philosophy worked well at the time of scarcity, if his army appeared to be weaker he simply bought the soldiers of the opposing army. When the enemy generals woke up in the morning of the decisive battle they had nothing substantial any more to fight this battle.
The Zionists have learned this. They are still hard headed and missing the lesson we can learn from the fate of descendants of Louis XIV in the hands of ordinary Parisians, the power of the peasants in Russia, and the power of the ordinary people both in Poland (the news media pretends that "nothing" happened in Poland), and again the same way power of the ordinary people in Germany.
The way to fix the Voter problems without bloodshed...
The representation disparity in Congress can be solved even in a two party system. We need to introduce one minor change in the ballots and then to count the votes a little differently - all is then simple math. We add the race of each candidate next to his/her name. Not complex nor secret as we all are supposed to know that anyhow.
Then we count the votes two ways: first by the race and then by the candidates, that's all what we need.
Let's take the State "X" that sends 10 members to House of Representatives in Washington. We make this example simple by assuming we a total of 100 votes were cast and the tabulated results are shown below (R = republicans, D = democrats):
That's all to it. The end result is the same 50/50 balance between the Republicans and Democrats but the racial distribution is now much closer to the existing population base in the State "X". With this voting in the House will reflect more precisely the opinion of the State "X". With this new composition in the House the Racial tensions especially in the South will start disappearing as the people at large will be represented in Washington by their own people and not by the Majority.
The same process will be used in every election in the State "X". There is no more need to redraw the voting districts as that will no more have any impact to the outcome.
The Essence of Capitalism
On September 15th, around 11 AM FED noticed an "unexpected" simultaneous electronic money run from all the US money market funds had at that time surpassed already US$ 550 billion. FED reacted by adding US$105 billion more liquidity to the system but realized quickly that this would not stop the tide and decided instead adding more just to shut down the whole money market system and increased the guarantee to every US investment account to US$ 250,000. FED knew that this money run was institutional. According to FED at the speed it had, by 2 PM the withdrawals would have passed US$ 5.5 trillion resulting to a collapse of the US financial system following within 24 hours by the collapse of the global financial system.
This September 15th was preceded by wild swings in commodity prices starting after Bear Stearns was swallowed by JP Morgan with apparent financing from NY FED on March 15th exactly 6 months earlier in an deal that still is not fully disclosed. September 15th saw a simultaneous failure of Lehman Brothers. It was reportedly AIG, the worlds largest insurance company, that was behind this money run to cover losses from their derivatives trading related to "exotic" derivative swaps -model Enron.
Why was Bear Stearns rescued and Lehman Brothers slaughtered is unclear and why was AIG running the US money markets exactly the same day Bear Stearns needed financing? We know that Lehman Brothers was one of the ten banks who have been behind the FED since it's beginning in 1913. While Bear Stearns was not part of this exclusive banking club it may have even deeper connections.
In 2008 BBC aired a documentary that was searching the roots for the failed coup attempt in 1933 included to their report the following on Bear Stearns: "Bear Stearns was founded as an equity trading house in 1923 by Joseph Bear and Robert Steanrs, and Harol Mayer with $500,000 in capital. The firm survived the stock market crash of 1929 without laying off any employees and by 1933 opened its first branch office in Chicago." How did they manage unscaled through the era of the great depression and even to expand their business remains a mystery!
Following the September 15th, stock markets around the world started tumbling and by mid March 2009 the investors had lost over US$ 20 trillion in value of their investments. Is it a coincidence that this US$ 20 trillion is about a same amount one must have in cash or similar to keep the almost US$ 700 trillion (BIS, Switzerland) global derivatives market current. This derivatives casino was and still is about ten times larger than the combined value of the global he GDB. This market loss meant mostly that the ordinary people like skilled workers, teachers, doctors, lawyers and other professionals and especially those carrying margin loans lost major part of their retirement savings.
If you take the internet bubble of 2001 only those investors who bought high lost money. The tech-companies themselves came out totally unscaled as the bankers had never given them any money anyhow. If the plan somewhere was to take over those companies that plan for sure misfired.
The BRIC countries have been questioning already for some years the wisdom of having US dollar as the only reserve currency in the world. Especially China has become vocal expressing concern about the future value of the dollar. They have almost US$ 2 trillion invested in the US treasuries. Were they lose their faith and sell these the US economy would collapse to deep depression under the skyrocketing interest rates. If the treasury debt would be converted to the "shares" of the USA herself the outcome would be less severe. Removing FED from the picture and just printing US$ 2 trillion of banknotes would certainly reduce the value of the dollar but how much - the USA is still a US$ 14 trillion economy with perceived property values closer to US$ 60 Trillion. This printing alternative is the least life disruptive solution for the US citizens should the Chinese decide to dumb the treasuries they own.
The dollar as the only reserve currency has been very profitable for the USA. All international trade require a freely exchangeable currency and when enough dollars were readily available everywhere the trade could flow freely. With interest of course this process supported the dollar beyond the dreams of the politicians and lulled the ordinary Americans to comfortable slumber regarding the world around them.
However, hidden from limelight some in the USA with accomplishes abroad were not asleep but busy testing, plotting and planning. The USA had already the mightiest war machine in the world and with that it is plausible that the world domination could be achieved. Like our previous president expressed: "We Americans must become the ownership society." The history had revealed one must have part on the way to global domination through the mouth of the Sun King of France, Louis XIV: "The one with most money will always win the war." So, the remaining question was: could a supreme wealth first be created and then secured...?
The computers and math provided the platform for this all. The problem was that the planners did not want to hear that financing and economy is not science and that all models based on assumptions will invariably encounter limits beyond which they become dangerous for their users. The Black Swans as they are coined by Mr. Taleb, can never be predicted while some can be artificially "inseminated" by those few in the world who have real power in their hands.
We suspect that Enron was used to test this hypothesis. Ten years ago Enron was one of the world's leading electricity, natural gas, pulp and paper, and communications companies with revenues over US $100 billion. Enron played with novel commodity trading strategies where the risk inherited with any of the highly leveraged margin trade was balanced with counter trades using anything else that was tradable in highly leveraged way. Fortune Magazine named Enron "America's Most Innovative Company" for six consecutive years. Totally unexpected at the end of 2001 it was put to bankruptcy for institutionalized, systematic, and creatively planned accounting fraud. It emerged from bankruptcy in November 2004 after one of the biggest and most complex bankruptcy cases in U.S. history. The end of this phase came when on September 7, 2006, Enron sold it's last business unit, Prisma Energy International Inc., to Ashmore Energy International Ltd, later AEI. The books were now clean and the tracks disappeared - while the trading did not! Headquartered in Houston AEI have today major trading operations around the globe according to Wikipedia.
The trading technology that Enron developed had no limits at all as anything could be traded against anything else provided that one could provide the margin cash. We believe this practice is behind the explosion of the derivatives game growing in 10 years from less than US$ 100 trillion "business" into a game with market value close to US$ 700 trillion and counting. At this level the main players must be supported by the largest banks in the world perhaps even in cooperation with some of the Central Banks as well.
The derivatives / option trade is centuries old and was developed to reduce the price swings both for farmers, miners, currency traders & al., and the consumers of these products and services. For centuries these option contracts never represented any real money and they were handled easily by the local bankers. The computer age changed this all as some saw the opportunities what timely information could provide. The time component is still extremely valuable for everybody in this game and the one with correct analysis of the near term future will pick the best short term fruits on this game board. Unfortunately this game board is not solid!
All the above points to a huge scam with unbelievable dimensions where such ponzi schemes like the one run by Mr. Madoff are but child's play...perhaps our Bernard actually was just a child who knew some but was not allowed to join this exclusive club aiming to global domination? It appears that there is something fishy in Madoff's case as he was allowed to wait for his trial in the midst of all luxury instead being behind the bars with others that are even much smaller criminals.
The Power Source of the Banking Empires
Already in ancient times the smart ones realized the power of compounding interest rate and forgiveness of loans is recorded even in the holy scriptures. The forever famous Albert Einstein stated: “Compound interest was not only man’s greatest invention, but it is also the most powerful force on Earth!”
Lets study this a little. With compounding interest and 300 years a family collecting 5% interest on a US$ 1 loan from others will have US$ 2,273,996 million after 300 years. If the interest rate would be 10% the family would have US$ 2,617,010,996,188 or US$ 2.6 Trillion. If the family would use the same lending practices than the US credit card companies apply to those who fail to pay in time the 29% interest would cause one dollar to grow to US$ 1.5*10^33, or a sum that forms when we start writing 15... and add then 32 zeros. This is what Einstein was trying to say. The money lenders, the bankers can quickly gain controlling stake in any economy or even the world if they are not tightly controlled. For this reason the central banks must be under the control of the governments and never be allowed to be such private banks like the Federal Reserve Bank or FED is in the USA.
The Rothschild family who have been heading the most powerful surviving banking empire lobbied the US Congress for almost a century until at last in 1913 they had enough converted "deciphels" to pass a new banking law through Congress. This law stipulated a private Central Bank Bank to take over the Government monetary policy. This bank would be called the Federal Reserve Bank or shortly FED and have twelve subsidiary FED Banks located around the USA.
The concept of central bank, it's functions and control have always been troubling for a typical Congressmen and in 1913 the "wolves" were carefully hidden behind ten US registered and incorporated banks. Some of these were real US banks while the majority ownership remained solidly in the hands of the Rothschild led private European banking empires. Of course by the letter of the law all these banks are US entities and accordingly all the decision they make are made by the US corporate "citizens".
FED continues to be secretive in it's dealings and defends fiercely it's independence as the sole ruler of the US monetary policy. We saw this vividly in a recent TV cast (June 2009). FED answers only superficially to the questions asked by the US Senators in meetings and refuses to open it's books for them to check. We have to make sure that FED understand that the US Government can not accept this behavior any more, the Central Bank, even if privately owned must obey the Government.
Before 1946 Bank of England was also owned by this same private banking group but after the WW II Prime Minister Churchill saw it as a problem and nationalized it. Since that these private bankers have claimed this ownership change to have meant no change in Central Bank's policy - in reality it has been everything else but a minor change.
The most serious question is the impartiality of the private FED. Have the interest rate changes imposed by FED always advanced the well being of the American People and the American business or benefited perhaps these private banking empires and their private clients at the expense of USA? We know what raising and lowering of interest rates means to business and the people. This is a power game where companies are driven out of business while others are waiting in the shadows to pick up the fruits at the right moment. If FED is on your side you will win in any market conditions! Can a private for profit Central Bank ever stay impartial? Judging the human nature the answer is NO. The Central Bank of a Country should never be a private for a profit organization. The term "for a profit" means already a conflict and with such the parties must compromise and without exception the weaker party will always give more than it's fair share.
In Democracy / Republic the citizens are in charge. At the moment in the USA we pretend that the FED is in "guarding" the major banks, the very ones that actually own it. For all logical persons this offers an interesting puzzle.
Democracy and Capitalism can they work together?
It appears that of all countries Sweden is closest to both Democratic and Capitalistic utopia.
The Swedish capitalism started during the Viking age. It sneaked forward in the shadows leaving her citizens totally unaware that they were slowly becoming the slaves and servants of the chieftains and the Kings. Today the Kings have been replaced peacefully and have only some ceremonial duties while the Capitalism flourishes more than ever before in the shadows. The governments have become servants for two masters, the primary is in the news taking care of the well being of the people while the secondary is wisely in the shadows overseeing that all is done the precisely right way to serve it's special interests.
On the surface the Swedes are better off than people in all developed countries and can afford to enjoy the life. The laws protect them from "cradle to grave", through every hardship than one can ever imagine. This is the best life for any worker without ambitions on this planet. However, when a generation changes there is often practically nothing left to support the the next generation.
The workers believe that their current pro Capitalism Government is actually good for them - even Robert-Houdin (1805-1871) would be envious of this trick. Here some words from the finance minister: "I was with the leaders of of the Swedish metalworkers union yesterday. They said their members were better off in private equity owned companies than in listed companies." -- "Sweden has it's own significant private equity and venture capital industry, so it is very focused on this. There is an exaggerated fear that private equity contains systemic risk. Our opinion is that it does not. It was not the private equity that caused the crisis, nor the hedge funds."
This is how the most advanced capitalistic country in the World speaks. Capitalism in Sweden has progressed beyond what the "capitalists" in London or New York dreamed it to become one day - they have heard of it but do not dare to take the steps - it hurts their pride too much.
Sweden is actually two countries in one. The first one is controlled by idealists taking care of the needs of the people, and the second one is totally devoted to global business. That is the reason why the Swedish business sees nothing wrong in derivatives. They saw like everybody else who was not asleep what was happening inside the walls of Enron. The profit potential in this modified derivatives game was just staggering. You just must know what you do and it helps if your friends include such celebrities like people with dictatorial powers in resource rich countries or are just otherwise connected to the right people. It all has turned to a huge numbers game played solely with "autonomous" computers fighting each others in execution speed - "Doomsday Boxes" like the one that escaped from Goldman Sachs. Below are some numbers:
These markets are no more used to stabilize the prices of potatoes, rice, beef, cereals, iron, copper, currencies, securitized "whatevers" - all those mundane things for the city dwellers, farmers, miners, factories and travelers. Eliminating price swings was the original purpose of all the options (derivatives). The knowledge of draughts or rain and sunshine at the right time was at that time the most important variable.
We no more need these real facts arriving in distant phone calls. The power or bribed Sovereigns is also diminishing and they are regrouping as they have realized that they are taken to the ride as well. Our latest "Doomsday Boxes" do all market changes in a random or preprogrammed way depending on what brings the best return for the moment. This is cyber war where huge sums of money change hands continuously and is accumulating to the hands of the most advanced.
The global financial institutions must be part of this game as only they can provide the liquidity that is needed and perhaps as the case of Goldman Sachs has proven, they are the real players of this part of the power game. However, they alone are not enough as the ability to control the masses is not there. As the Kings and their armies are already history the next possibility ids the fascist rule. Europe tried it in four places during the past century: in Italy by Mussolini, in Poland by Józef Piłsudski (1926-1934), in Germany by Hitler and in Russia by Stalin even if many may contest that last claim. What is the difference -Stalin had the power until poisoned in Kremlin. The coup attempt by fascists failed in the USA in 1933 but the perpetrators were never jailed nor accused.
The USA have the most powerful armed forces on the planet. However these forces are somewhat restricted as the world has already some nuclear "no touch" zones. The new minor nuclear powers like Israel, India, Pakistan, and North Korea do not count. Even as Israel has more than 200 nuclear warheads it is too small and can be wiped off the map with a handful of bombs. They should know better and stay out from these games. Iran has also aspirations to become a nuclear power but it has nothing real to show for many years to come. Exploding even one nuclear bomb would have no value in modern warfare.
We could consider also selective biological means for global domination, and so could everybody else. We have racial differences and different eating habits so this might work. If easily spreading diseases like the Schwine flu could be harnessed to work as selective silent killers then we might get major changes in the World order. With the current very real Schwine flu epidemic it looks like there was a human creator behind it but this one seem to have no selection preferences except that it avoids people who are old enough to have the 1918 flu antibodies still in their system and those countries where the chlorinated water has been banned. The greatest irony is that the former communist Russia might actually survive almost totally un scaled from this flu epidemic. Back to topic...
When the derivatives game is like it is it may no matter any more whom we elect to run to our Governments and public offices as they end up accepting the supreme power one way or the other. It no more a question of "democratic" or "republican" ideas as it all is in the hands of the supreme elite groups. It's back to Rome two millenniums ago when Emperor Galicula's horse Incitatus was about to become a consul.
We must choose
For the Sun King of France Louis XIV and later on Napoleon luck and miracles on the battlefield were utter nonsense. Napoleon made it as clear as they could by stating "the duty of a religion is to protect the nobility from being slaughtered on the streets", and continued: "I am surrounded by priests who repeat incessantly that their kingdom is not of this world, and yet they lay their hands on everything they can get." Be assured most people would gladly share the loot of the priests.
It is time to start hunting those who manufactured the current financial crisis and put the criminals behind the bars or alternatively to join them depending on your taste and willingness to risk it all. The ancient order for those who hunt has not changed: "Follow the money!"
The hunting is not difficult at the beginning and most likely you will never find those who play it now. The suspects can be hiding almost anywhere even in religiously charged institutions trusting the Biblical prophecies. The news media that for sure is under the control of these "Dark Lords" is dwelling in anything that is unrelated. They have recently been inspecting every sand grain on every beach and street such celebrities like Michael Jackson may have ever seen.
Bernard Madoff was a few weeks ago a perfect scapegoat for them also. This diversion was good as they were likely closer to the truth here than they ever will come by dwelling in the luxury he had lived and the emotions his victims had suffered. These victims will never take him to a real court as there is a danger for the accuser also in this case. The news media is avoiding serious discussions around lehman Brothers, AIG, Goldman Sachs with their "Doomsday Box", fate of Bear Stearns, the open corruption on the top of Zionist movement in Israel and the influence of her "defense shied" around the globe. The "Dark Lords" have their "barking dogs", a high concentration of Zionists "anchors" running the prime time programs in every major TV network and largest newspapers. The FED has now also unsustainable integrity dilemma around as it's vassals are now in charge to policing the friend of the "Dark Lords" the owners of these banking empires - what a joke... This is the reason why they all suddenly realized that they must give their TARP & al. moneys back to FED and the tax payers before it is too late.
Georgia and Iran were also good topics to dwell for a while until even China got bored and said; yes, there was and will be unrest but the reported "facts" are incorrect, the agitators do not have the support of the masses and missing that whoever you in the West supports them will get nowhere. This was a no-no statement for the "Dark Lords" and their "barking dogs" unleashed their long fermented unrest in the Western China. Unfortunately for those participating in this, China did what a major power does, it did send enough soldiers and it was over. Unleashing this misery had nothing to do with human rights but everything to do with the major mineral and oil deposits in the ground on that area. The forbidden City just is far away from this future "mining district" that the "Dark Lords" are looking to belong to them.
The "barking dogs" have also avoided all negative statements over the specific banking empires, the right wing of the Zionist movement that has little to do with the Zionists at large and even less with the Jews, Skulls & Bones, Bilderberg, Trilateral Commission, Illuminati, the descendants of 1933 failed coup in the USA. With this all we can be sure that those who brought us the financial misery are found among the members of the above groups. It is also crystal clear that some of the Middle-Eastern dictators were participating in crude oil price swings but with such "shareware"-class programs like Goldman's "Doomsday Box", their services are no more needed and most will find themselves in the midst of domestic implanted unrest al'a Georgia, iran, Uighurs in China that they must solve to survive.
The next step is to eliminate the wrongly accused groups...
We believe the religion is there only to mobilize masses in case they are needed but the brains of these movements are not in the Churches. The people like Bernard Maddoff are the ones who know something on the fringes but he is now removed from the witness list for the next 150 years. It is interesting that nobody dared to kill him. This can mean only that the success of the assault is not 100% sure as of today and Mr. Madoff is providing powerful security for some that are involved but suspect the others. As we saw he went to jail without any lengthy proceedings like the 4 years it took to clarify the Enron problems. We also know that none of his major clients, the wealthy Jews will never charge him in public - that is the power of the "defense shield" of Israel. We have a totally new level of corruption in the USA. Even criminal acts are OK if one knows the right people. Mr. Maddoff's activities were known for years to US regulators but they chose to do nothing.
Several Presidents, Nixon, Reagan, Bush Jr. and many before have seeked advice from those with power of the clairvoyance. "Whispers" tell that before we went to Iraq a high level Cabinet member frequented US South for advise.
This is how the masses are mobilized when needed. The "fables" of the Torahs (as defined by Einstein) and the stories found in the Bible, Koran, and other "equal" sources like Nostradamus & al. have impacted the lives of the past generations including ours more than most even realize. Suddenly true prophecies enforce the power of the State and the Church more than anything else. They all have had one more earthly purpose...
The results can be summarized in one sentence: With all these GOD "sanctioned" wars countless millions of ordinary people have been killed and maimed and their properties destroyed or confiscated while the spoils of the wars have accumulated to the hands of the Kings, Priests, Popes, etc.. This is very how we got into Iraq, a few lunatics flying planes to Twin Towers with TV-crews already patrolling close by made a good show. The Towers were prepared for this attack ahead of the time and it is funny why the news media did not pick up that the WTC-7 ended up being demolished using nano-thermite only and not by planes and nano-thermite. It was supposed to be brought down by the third plane but that hit the ground while the passengers were subduing the hijackers. The uneducated masses will not comprehend the facts and the "barking dogs" is all what is needed to change the story.
This same process with suitable variations has been used for the past 12,000 years to secure that the ordinary people will remain "penniless" slaves while the compounding interest in it's multitude of forms accumulate to the hands of the few.
With computers and derivatives this old practice using compounding interest has became almost obsolete. However, it is still the only real alternative for ordinary people without sophisticated computer trading programs. And with persistent use it is a powerful tool.
This new method of wealth building tells also that it is suddenly better to have more slaves and infrastructure making the property destruction wars obsolete. However the biological wars are not tested as of yet.
Compounding Interest - the "eight wonder" of the World
We show here a hypothetical example to illustrate why Albert Einstein told the compounding interest to be the most destructive force on earth.
Your great, great, great,... ancestors existed of course already at the time of Christ and for some reason they wanted to make a deposit worth one US penny on an account collecting a meager two percent compounding interest and the bank accepted instructions that this penny and all accrued interest would be delivered to you at the end of the year 2009:
- you got just recently a letter acknowledging this fact from the successor of this bank with an address somewhere in the City of London.
- you did not think much of this penny with two percent interest, the airline tickets to London, hotels and everything else would be quite expensive but decided to show this letter to your friend, you old math teacher.
- He red it and stared at you and walked to computer, plugged in the 1 penny, 2% and 2009 years and printed the result: US$ 1,896+ trillion dollars. That is about three times the value of all the current derivatives trade. Multiply that by the number of the families in the world and you understand why the accumulation of wealth to the hands of ordinary people must be prevented by any means including wars and unexplained deaths.
It is instantly clear that the rulers would never let this wealth accumulation to happen. It could be destroyed also with inflation but that would destroy the wealth of the rulers as well and the relative wealth would not change. Revolutions must be prevented as they would chop the rulers off. This leaves the wars and believe or not we have had one major war roughly once in every 40 years through the known human history.
The wars can be used also for pruning to prevent the undesirable persons of families from getting power. The battle fields can solve many problems while there is always a danger of misfire but when all is carefully planned the outcome is almost sure. The rulers on the other side have the exacting problem and it all is a joint effort to reduce the internal problems. The war of course can be repeated as needed but it carries also risk if the sides are uneven in their wealth.
The global Derivatives game - how is it played?
July 9, 2009, a wake-up report in internet told (not quite correct but in essence still correct): "Trillions of dollars stolen - the largest theft in World history has been engineered by the Israel Security Agency (ISA) under the direction of Israeli Prime Minister Benjamin Netanyahu, Global News Baron and oligarch Rupert Murdoch and the US investment bank Goldman Sachs (GS). The money was stolen from American mutual and pension fund account holders through a device known as “Doomsday box”. This surfaced since arrest of a Mossad agent named Sergey Aleynikov by the United States, who reportedly stole from Goldman Sachs the most “complex and secretive stock manipulating programme ever created” and turned it over to Livni, and who in turn gave copies of it to Russia, China and Germany. After learning of the theft of their “Doomsday Programme”, Goldman Sacks ordered the US Government to arrest Sergey Aleynikov, but as noted by the Bloomberg News Service: “what was Goldman doing with this programme to begin with”?
Just be assured that none the above mentioned people know who among those people they have met belong to the secretive society of the "Dark Lords" but they have met several of them during the past decades.
Aleynikov, 39, is the former Goldman computer programmer who was arrested on theft charges July 3 as he stepped off a flight at Liberty International Airport in Newark, New Jersey. That was two days after Goldman told the government he had stolen its secret, rapid-fire, stock- and commodities-trading software in early June during his last week as a Goldman employee. Prosecutors say Aleynikov uploaded the 32 MB program code to www.xp-dev.com server in Germany where it was sitting almost a month and "collecting dust". The owner of a web site declined to say whether or not other people accessed the code while it was on the site. It was removed from server on July 6th.
Somebody did not want Aleynikov released on bail. Assistant U.S. Attorney Joseph Facciponti told a federal magistrate judge at July 4 bail hearing in New York: “GS has raised the possibility that there is a danger that somebody who knew how to use this program could use it to manipulate markets in unfair ways.” Was GS actually manipulating the markets in unfair ways and how long had they been doing this? This means that they do no more need false rumors by telephone this program creates all the "rumors" it sees useful on the spot. No wonder that the markets have been so unpredictable and defying the gravity at the times it is impossible. Then we have Federal prosecutor knowing that GS is manipulating markets unfair ways and no charges have been raised! This belongs to the same category as the fact that FED is surpassingly policing Goldman Sachs and other major banks while these banks actually own FED. How does this work in practice?
In any event, the judge released Aleynikov on July 6th against US$ 750,000 bail as he saw that Mr. Aleynikov posed a danger to the community.
To the power that the ISA led Goldman Sachs bank has had over the US in allowing them to steal nearly the entire wealth of that Nation has been devastatingly detailed by the Rolling Stone Magazine News Service in their report titled “The Great American Bubble: How Goldman Sachs Has Engineered Every Major Market Manipulation Since he Great Depression”.
Even worse is to come, President Barak Obama has filled his Adminidtration with former Goldman Sachs executives and lobbyists that some Russian economists are now calling Wall Street the “Fourth Branch Of The US Government”, and which includes their current Treasury Secretary, his Chief of Staff, the former Treasury Secretary under President Bush (who engineered the $700 Billion bailout of US banks), and the former Treasury Secretary under President Clinton who allowed the deregulation of US banks and with that he initiated the looting of the American public of their wealth.
Most important to note in this report are the details describing how Goldman Sachs “Doomsday Box” was “created” by ISA programmers working under the Chairman of the Israeli National Security Council, Dr. Uzi , his wife, Dr. Ruth Arad, Vice President and Chief Risk Officer of Bank Leumi, and Jacob Ezra Merkin, who bought the Bank Leumi from the Israeli government headed by then Prime Minister Ariel Sharon and finance minister Ehud Olmert, who became Israel’s Prime Minister after Sharon but was forced to step down while under corruption charges allowing Netanyahu to steal the Premiership from Livni.
What is really interesting in these reports is that Jacob Ezra Merkin allowed his longtime business partner Bernard Madoff the “personal use” of the “Doomsday Programme” which he then used to enrich himself, Dr. Arad and his wife, and Madoff to the tune of over $65 Billion they stole largely from the wealthiest Jewish Families in America, and who they knew would never testify against ISA agents in any of the US Court under any witness protection programme.
However, the outcry over the billions lost by America’s richest Jewish families necessitated the scapegoat of Madoff, who received a sentence of 150 years in exchange for the US not prosecuting Dr. Arad, his wife or Merkin, all who remain free and uncharged for their crimes. More astoundingly, Dr. Arad, who was banned from ever entering the United States due to the massive Israeli spy network he headed in that country, was garnted Visa by Obama who sided with his Goldman Sachs allies against his own intelligence services.
Also interesting to note in these reports is the role played in the vast Israeli criminal network by the Australian media oligarch Rupert Murdoch, who these reports say has used his vast media holdings in the United States and Britain to collect personal data on “high government officials” which was then used by Dr. Arad’s ISA network to blackmail these officials against conducting any investigation into the crimes they have committed.
Though the United Kingdom has announced and investigation into Murdoch’s vast ISA spy network set up in their country, there remains no evidence of the United States doing the same.
To the utterly stupefying theft of the American people of their wealth by these criminals it is eclipsed by the fact that those elements and forces that robbed these people blind have, literally, come out from the shadows and are now openly running the entire government of the United States. But even more incomprehensible is a fact that instead of seeing the truth the AMericans have chosen to keep their attention on the day in day out repeating stories about a 50-year-old rock singer who died a couple weeks ago of a massive self inflicted drug overdose.
The Variables
The price of oil has swinged wildly outside the normal parameters. We know that the time of inexpensive oil is over as the graph below covering the US crude oil production indicate. The USA must import more and more oil. This is the real reason we must switch to alternative energy technology - not the global warming.
The global warming scare works well with the uneducated population but carries risk as the "truth" told to the people of CO2, CH4 and other greenhouse gases is not the real truth. However, what can a politician do? It is our sun that has been getting slightly hotter - we just have no idea what it might do next even if the 600,000 year of ice core samples show that the current warming period might actually be quite normal. Carbon dioxide, CO2 & al., are lagging indicators, not leading ones and our oceans have more than enough capacity to absorb all what we can ever throw into our atmosphere. The soot is though unhealthy but that also is another topic - coming soon on this site.
We still have some people believing that US$ 20 per barrel of oil ia a just price - this is hogwash and these people should be thrown to jail. As an average it takes about US$ 65 to get it out of the ground the way that the crude oil business makes any sense. For sure pumping the oil from the best oil fields in Saudi-Arabia does not cost more than a dollar or two per barrel but that is not the full story. This oil just flows to ground in the middle of the hot sandy desert and goes then nowhere. True, it is no more below the surface. In comparison the we can get the Canadian oil sands oil into a pipeline at price between US$ 60 and US$90 per barrel. From the deep oceans - the only place where we have our remaining major oil field - the cost is between US$ 40 nd US$ 60 per barrel but for many places we do not have the technology as of yet. The same applies to the Arctic oil.
The alternative technologies are economically viable only at crude oil prices above US$ 60 and US$ 110 per barrel. If we wait until we get there we wont have enough oil available to ever get there without some major wars. And with that who knows what we must pay for the oil, is something around US$ 200 to US$ 300 per barrel even enough?
This is great for corruption and false rumors to drive the stock markets and economies around the globe to wild gyrations that invariably will destroy the savings of ordinary working people. Have you never wondered why some prominent families and family empires are so close to the Middle-East Royal families? Talking of free markets and market price discovery in this environment is utter nonsense.
We could stop this game instantly simply by increasing the margin requirements for each derivatives contract. This has worked well for centuries but now we have the free markets and price discovery that will do it: "the markets know it best - they will control themselves better than any regulator can ever do." We have done this for the past few years and the wager is now grown to US$ 700 trillion. In addition computer programs like the "Doomsday Box" know it all even better than the so called "free" markets.
It is funny that we know how to stop this game but suddenly we can not find the political will to go back and really stop it - WHY? Who has this power over our legislative bodies? This question must be answered and as funny as it is we have known this answer for a couple of decades. W appears to have finally realized the root of this problem but was too timid to stop it!
Who owns the World?
The world is controlled by a surprisingly small number of wealthy families.
As per recent statistics from FT two percent of people control 50% of all private wealth on earth. Reportedly only one percent of the people earn more than the remaining 99%. This means that the wealth accumulation to ever fewer hands continues to accelerate.
Nothing wrong in the 2% having 50% of assets as they will tend to accumulate to the smartest but the practice of asking the poor to pay most of the taxes in a society is ridiculous.
On the low end of the wealth pyramid the poorest 50% of the people control only 1% of the global wealth.
To belong among the 1% of the wealthiest people one must have a net worth of US$ 500,000 ( 37 million people have it, UNU-WIDER, FT - 2006 data). Adults with more than only US$ 2,200 net worth are in the top half of wealthiest people in the World, those with over US$ 61,000 belong to the top 10%. While North America has 6% of the World's population it accounts for 34% of all private wealth. The top 10% in the USA own 70% of all private assets in the USA, compared to 61% in France, 56% in UK, 44% in Germany and 39% in Japan.
Here is a paradox that the poor of the world can laugh at:
Many families in the high income countries like the USA have fallen prey to scrupulous bankers who can make almost anything instantly available to the impatient "I want it now" people. Unable to resist temptations these families have become debt slaves that are "free" to go as they please but not free at all. If these people become unemployed for more than a few months they will lose everything in their name and are thrown to the streets from their mansions, houses and rentals and everything they own is confiscated by the scrupulous lenders and auctioned off.
At retirement many are out of luck as they have been only consumers and their retirement benefits from the social security system was never intended to support them fully - they must go back to work. With all this the life expectancy shortens dramatically (great for the pension and social security funds).
TV, radio and all other information channels are continuously doing everything in their power to divide the families to a point that the offspring and relatives do not even talk to each others any more - and the new generations are doomed to slavery while the aging "debt slaves" are doomed to survive by the help of charities, soup kitchens and homeless shelters. These people are actually poorer than any member of a native tribe in the Amazon rain forests or elsewhere!
Transforming the above to human behavior and interaction can be boiled to a simple statement: "...if one can predict all the actions of a person ahead of the time then that person is not free - that person is enslaved with a master somewhere even if totally invisible and unknown to that person."
Where does this all lead?
Since 1913 our Financial system is operated under the Federal Reserve Bank or or FED. It is actually a private bank owned by West-European, Israeli (Khazar) and US wealthiest families through the following 10 (now 9) banking empires: Rothschild Bank of London, Rothschild Bank of Berlin, Lazard Brothers of Paris, Israel Moses Seif Banks of Italy, Warburg Bank of Amsterdam, Warburg Bank of Hamburg, (Lehman Brothers of New York - Bankrupt in 2008), Kuhn Loeb Bank of New York, Goldman Sachs of New York, Chase Manhattan Bank of New York.
One of the last items President John F. Kennedy did before he was assassinated was to declare his intention to reform the central banking system of the United States. Did he realize what Winston Churchill had foreseen already when he nationalized the Bank of England? Anyhow coming to current financial crisis and rescue of our banks using tax payer money we have now FED supposedly giving orders to it's owners what to do while these same owners exercise their real power over the FED. This is a joke and nothing else!
Congressman Louis McFadden, Chairman of the House Banking and Currency Committee from 1927-33, opposed the Federal Reserve System. There were three reported attempts on his life before he finally died of "heart failure." Here's what he said about the Federal Reserve from the floor of Congress: "Mr. Chairman, we have in this Country one of the most corrupt institutions the world has ever known. I refer to the Federal Reserve Board and the Federal Reserve Banks, hereinafter called the FED. The FED has cheated the Government of these United States and the people of the United States out of enough money to pay the Nation's debt. The depredations and iniquities of the Fed has cost enough money to pay the National debt several times over. This evil institution has impoverished and ruined the people of these United States, has bankrupted itself, and has practically bankrupted our Government. It has done this through the defects of the law under which it operates, through the mal-administration of that law by the FED and through the corrupt practices of the moneyed vultures who control it."President J. F. Kennedy was absolutely correct we must reform our banking system. He saw the 1929 as their making including the WW II and the enormous power this partially foreign entity had over all of our industries, the influence that was only growing. After him these same power players planned and put us through the first oil crisis, the "dot.com"-bubble, the Savings & Loans scandal, Iraq war, securitized mortgages, and now the incoming derivatives bubble and after that the sky high interest rates to bankrupt every person that has any outstanding loans. So far they have profited immensely and with these two remaining blows they likely to take over it all.
Our FED is supposed to be on the tax payers side, not on the side of foreign interest groups like it is now. To get there we must nationalize the FED and put it 100% under the US government like in UK. It will be the only institution to have the right to issue new money. The tax payer should never pay interest to money the government prints ed. We all know that whenever this printing is done by legislation it is done at the expense of the value of our currency and it is up to Congress to decide if we are in such a weak position that we must do so.
The Bank of England was nationalized in 1946, which might seem at first sight to be a far reaching measure, made little difference in practice. Yet, the state did acquire all the shares in the Bank of England -- they now belong to the Treasury and are held in trust by the Treasury Solicitor.
This is the route we should take also here in the USA. It may not change much at the beginning but it will cut the cozy cooperation between the FED and the banking empires. We gave this banking system recently US$ 700 billion taxpayers' money - and FED has not even told us where this money went.
Solution to the current financial crisis?
Like Winston Churchill did in UK in 1946 our FED should be nationalized as soon as possible. After that The new FED would be 100% controlled by the US Government and would have the sole right to create money in the USA together with the Treasury under the instructions from the Congress with a secondary duty to oversee the soundness of the banking system in all of the States.
The Federal Reserve was created on December 23, 1913, with the signing of the Federal Reserve Act by President Woodrow Wilson. The act had been drafted as House Resolution 7837 by Representative Carter Glass (D-VA), incoming chairman of the House Banking and Currency Committee.
It took the European banking Empires almost 100 years constant lobbying and a couple of failures to get the finally legislation passed in the Congress that would grant them the right to become the Central Bank of the USA. It is also evident from the legislative history of the Federal Reserve Act that Congress did not intend to give the federal government direction over the daily operation of the Reserve Banks, i.e. they are a private enterprise and free to proceed as they please in their activities. There is only one caveat, the USA congress promised to pay all their expenses and 6% interest on the bank's capital:
It is proposed that the Government shall retain sufficient power over the reserve banks to enable it to exercise a direct authority when necessary to do so, but that it shall in no way attempt to carry on through its own mechanism the routine operations and banking which require detailed knowledge of local and individual credit and which determine the funds of the community in any given instance. In other words, the reserve-bank plan retains to the Government power over the exercise of the broader banking functions, while it leaves to individuals and privately owned institutions the actual direction of routine.
H.R. Report No. 69 Cong. 1st Sess. 18-19 (1913).
The fact that the Federal Reserve Board regulates the Reserve Banks does not make them federal agencies under the Act. This was fully confirmed in 1982 in a court case. The court ruled that the Federal Reserve Banks are "independent, privately owned and locally controlled corporations", and "there is not sufficient "federal government control over 'detailed physical performance' and 'day to day operation'" of the Federal Reserve Bank for it to be considered a federal agency: Lewis v. United States, 680 F.2d 1239 (1982).
The chart below reveals the connection between the House of Rothschilds and the Bank of England, and the London banking houses which ultimately control the Federal Reserve Banks through their stockholdings of bank stock and their subsidiary firms in New York.
The two principal Rothschild representatives in New York, J. P. Morgan Co., and Kuhn, Loeb & Co. were the firms which set up the Jekyll Island Conference at which the Federal Reserve Act was drafted, who directed the subsequent successful campaign to have the plan enacted into law by Congress, and who purchased the controlling amounts of stock in the Federal Reserve Bank of New York in 1914. These firms had their principal officers appointed to the Federal Reserve Board of Governors and the Federal Advisory Council in 1914. In 1914 a few families (blood or business related) owning controlling stock in existing banks (such as in New York City) caused those banks to purchase controlling shares in the Federal Reserve regional banks. Examination of the charts and text in the House Banking Committee Staff Report of August, 1976 and the current stockholders list of the 12 regional Federal Reserve Banks show this same family control.
N.M. Rothschild , London - Bank of England
______________________________________
| |
| J. Henry Schroder
| Banking | Corp.
| |
Brown, Shipley - Morgan Grenfell - Lazard - |
& Company & Company Brothers |
| | | |
--------------------| -------| | |
| | | | | |
Alex Brown - Brown Bros. - Lord Mantagu - Morgan et Cie -- Lazard ---|
& Son | Harriman Norman | Paris Bros |
| | / | N.Y. |
| | | | | |
| Governor, Bank | J.P. Morgan Co -- Lazard ---|
| of England / N.Y. Morgan Freres |
| 1924-1938 / Guaranty Co. Paris |
| / Morgan Stanley Co. | /
| / | \Schroder Bank
| / | Hamburg/Berlin
| / Drexel & Company /
| / Philadelphia /
| / /
| / Lord Airlie
| / /
| / M. M. Warburg Chmn J. Henry Schroder
| | Hamburg --------- marr. Virginia F. Ryan
| | | grand-daughter of Otto
| | | Kahn of Kuhn Loeb Co.
| | |
| | |
Lehman Brothers N.Y -------------- Kuhn Loeb Co. N. Y.
| | --------------------------
µ
| | | |
8
| | | |
Lehman Brothers - Mont. Alabama Solomon Loeb Abraham Kuhn
| | __|______________________|_________
Lehman-Stern, New Orleans Jacob Schiff/Theresa Loeb Nina Loeb/Paul Warburg
------------------------- | | |
| | Mortimer Schiff James Paul Warburg
_____________|_______________/ |
| | | | |
Mayer Lehman | Emmanuel Lehman \
| | | \
Herbert Lehman Irving Lehman \
| | | \
Arthur Lehman \ Phillip Lehman John Schiff/Edith Brevoort Baker
/ | Present Chairman Lehman Bros
/ Robert Owen Lehman Kuhn Loeb - Granddaughter of
/ | George F. Baker
| / |
| / |
| / Lehman Bros Kuhn Loeb (1980)
| / |
| / Thomas Fortune Ryan
| | |
| | |
Federal Reserve Bank Of New York |
|||||||| |
______National City Bank N. Y. |
| | |
| National Bank of Commerce N.Y ---|
| | \
| Hanover National Bank N.Y. \
| | \
| Chase National Bank N.Y. \
| |
| |
Shareholders - National City Bank - N.Y. |
----------------------------------------- |
| /
James Stillman /
Elsie m. William Rockefeller /
Isabel m. Percy Rockefeller /
William Rockefeller Shareholders - National Bank of Commerce N. Y.
J. P. Morgan -----------------------------------------------
M.T. Pyne Equitable Life - J.P. Morgan
Percy Pyne Mutual Life - J.P. Morgan
J.W. Sterling H.P. Davison - J. P. Morgan
NY Trust/NY Edison Mary W. Harriman
Shearman & Sterling A.D. Jiullard - North British Merc. Insurance
| Jacob Schiff
| Thomas F. Ryan
| Paul Warburg
| Levi P. Morton - Guaranty Trust - J. P. Morgan
|
|
Shareholders - First National Bank of N.Y.
-------------------------------------------
J.P. Morgan
George F. Baker
George F. Baker Jr.
Edith Brevoort Baker
US Congress - 1946-64
|
||
Shareholders - Hanover National Bank N.Y.
------------------------------------------
James Stillman
William Rockefeller
|
||
Shareholders - Chase National Bank N.Y.
---------------------------------------
George F. Baker
Banks in the USA before 1913...
(Humanities, January/February 2008, Volume 29/Number 1) On July l0, 1832, President Andrew Jackson sent a message to the United States Senate. He returned unsigned, with his objections, a bill that extended the charter of the Second Bank of the United States, due to expire in 1836, for another fifteen years. As Jackson dryly noted, the bill was presented to him on the Fourth of July, a day freighted with portent.
Today Jackson's Bank Veto and the political conflagration known as the “Bank War” that it touched off seem arcane and nearly incomprehensible. While misdeeds among the rich and powerful still garner headlines and incite congressional inquiries, the core instruments of our economic system-the network of banks capped by the Federal Reserve; the corporate form of business enterprise; the very dollars in our wallets, issued and guaranteed by the federal government - are utterly taken for granted. That these could have been the subject of controversy, that anyone could seriously contemplate organizing American capitalism differently, seems nearly unthinkable. Andrew Jackson is recalled today, when recalled at all, for other things, primarily as the architect of forced Indian removal. His face on the $20 bill is a mystery to many, an outrage to some, and, to the knowing, a curious irony.
Yet, in its day, nothing galvanized American political conflict more than banking, currency, and finance. In the republic's first half-century, no subject, save foreign relations and war, gave greater vexation to American statesmen or aroused more heated public debate. The creation of the original Bank of the United States in 1791 sparked the first major division within President George Washington's administration, which later ripened into the Federalist and Democratic-Republican parties.
Jackson's veto in 1832 repeated the process: It became the touchstone issue in his reelection campaign and precipitated the organization of the Whig and Democratic parties, the latter, still surviving, now the oldest mass political party in the world. The very language of Jackson's veto, departing sharply from all that came before, furnished a political grammar since claimed by Populists, Progressives, New Deal liberals, socialists, free marketers, libertarians—in short, by just about everybody.
Clearly, one cannot fully appreciate Jacksonian, and indeed American, politics without confronting his Bank Veto. Yet to make sense of the document requires imagining a world in some ways very different from our own. Americans were already by the time of the Revolution a famously enterprising people, yet their enterprise required capital far beyond available means. Credit was vital but often uncertain. The country's only legal money, gold and silver coin, was in chronic shortage, never plentiful enough to serve in everyday exchange. Banking in the early United States therefore grew by the forced hand of government. By special individualized acts of legislation, state and federal governments incorporated banks and authorized them to lend their own credit in the form of banknotes. Ostensibly redeemable in specie, these notes passed in lieu of coin in daily commerce, serving in practice, though not in law, as money.
The connection of banks and government was fraught with financial and political peril, especially in a young republic whose citizens craved riches and yet resented every hint of aristocratic privilege. Banking was poorly understood, not yet professionalized, and its amateur practitioners sometimes wreaked disaster on their customers. Indeed, men commonly sought bank charters not as an outlet for investment, but as a source of credit—not looking to lend, but to borrow. In a financial sleight of hand, the required paid-in capital to start a bank often consisted of IOUs to be redeemed by the bank's own profits.
That lawmakers could ordain credit, and hence create wealth, by merely waving a legislative wand struck many citizens as strange and malign. Corporations themselves were a novel form of business organization, not yet standardized or widely utilized. To many simple farmers and tradesmen, the granting of special favors, including the prize of limited liability, by means of legislative bank charters recalled the hated British system of monopoly and corruption. Paper money was also suspect-with good reason, since if issued imprudently it had a way of becoming worthless. No less than former President John Adams in 1813 damned chartered banking as a giant swindle, a "Sacrifice of public and private Interest to a few Aristocratical Friends and Favorites."
In 1790, Treasury Secretary Alexander Hamilton proposed to incorporate a Bank of the United States. Modeled on the Bank of England, it was intended frankly to buttress the new government by entangling its finances with the interests of moneyed men. Though serving public purposes, the Bank was to be a profit making institution, with private shareholders holding four-fifths of its stock and electing four-fifths of its directors. It was, said Hamilton, “an essential ingredient” in inspiring confidence in its prudent management that a national bank "be under a private not a public direction, under the guidance of individual interest, not of public policy."
Opposed by Secretary of State Thomas Jefferson and his ally James Madison, Hamilton's Bank nonetheless passed Congress and became law. In operation it accomplished all its architects had hoped, stabilizing the country's chaotic currency and helping retire its Revolutionary debt. But many Jeffersonians never accepted it, and when its twenty-year charter came up for renewal in 1811, with Congress in their control, they killed it. The government's ensuing flirtation with bankruptcy in the War of 1812 taught them their mistake. In 1816, Congress chartered a Second Bank, again for twenty years. Like its predecessor, it was a predominantly private entity serving public purposes. The four-to-one private-public ratio in ownership and directorate was retained, and the Bank's capital was advanced from $10 to $35 million, a huge sum in those days. Authorized to establish branches throughout the states, the Bank was the country's only financial institution of truly national reach. While competing with state-chartered banks for private business (and controlling their lending by collecting their notes for redemption), it would also be the federal government's banker, charged with brokering its loans and with receiving, storing, transporting, and disbursing federal funds. The Bank's notes were legal tender. In return for its “exclusive privileges and benefits,” including a congressional pledge to create no competing institution, the Bank was to pay the government a bonus of $1.5 million.
Opening for business in the midst of a postwar boom, the Second Bank promptly discredited itself by speculation, stock jobbing, and, at some branches, outright fraud. But under the discreet management of its second president, Langdon Cheves, and his successor, Nicholas Biddle, it soon repaired its condition and reputation. By the end of the 1820s it had proved not only useful but, to many eyes, indispensable.
But not to Andrew Jackson. Jackson came to the presidency with a deep sense of grievance against his enemies, real and imagined, in the existing political establishment and with a conviction that the government had fallen from Jeffersonian austerity into profligacy and corruption. This he was determined to reverse. The Bank was barely mentioned in Jackson's 1828 successful campaign against incumbent John Quincy Adams. But, after assuming office, Jackson learned of branch officers using the Bank as what one Jackson partisan called “an engine of political oppression” against his followers. Asked to explain, Bank president Biddle pronounced the charges “entirely groundless.” He affirmed the Bank's forbearance from politics-and its complete independence from executive control.
Then, in November 1829, Biddle approached Jackson with a proposition. The Bank would assume the last of the dwindling national debt to enable its full discharge before the end of Jackson's term, an object that Biddle knew was dear to the president's heart. The quid for this quo was an early recharter for the Bank, which would send its stock soaring and provide a windfall for shareholders.
Intended to placate Jackson by showing the Bank's friendship and usefulness, Biddle's offer had the opposite effect. To Jackson it was a backstairs deal smelling of privilege and corruption, something close to a bribe.
Already suspicious of the Bank, from that moment he turned irrevocably against it. In his first annual message to Congress just a few weeks later, he startled everyone by raising the question of recharter and declaring his opposition. The Bank's constitutionality and expediency were “well questioned,” said Jackson, “and it must be admitted by all that it has failed in the great end of establishing a uniform and sound currency.” It was a statement at variance with facts. The Bank's notes, unlike those of many state-chartered banks, circulated everywhere at face value, their integrity unquestioned. They were as good as gold. To Jackson it did not matter. In the Bank, Jackson found a concrete focus for all his fears of aristocratic subversion—fears he shared with many citizens. “I was aware that the Bank question would be disapproved by all the sordid, & interested, who prised self interest more than the perpetuity of our liberty, & the blessings of a free republican government,” he confided shortly after the annual message. “This monied aristocracy” was everywhere at work, buying up voters and lawmakers and “silencing opposition, by its corrupting influence, & preparing for a renewal of its charter, which I viewed as the death blow to our liberty.”
The recipient of this disclosure was none other than James Alexander Hamilton, son of the late Treasury secretary and himself a federal district attorney and Jackson confidant. Hamilton had helped craft the passage opposing recharter in the annual message.
Now, at Jackson's prompting, he prepared a detailed critique, arraying objections to the Bank under two heads. The Bank was unconstitutional, because Congress had no power to charter corporations and withdraw them from the regulatory and taxing power of the states. (This was the Jeffersonian position, which the Supreme Court under Chief Justice John Marshall had rejected in the landmark case of McCulloch v. Maryland in 1819.) The Bank was also dangerous to liberty, because its concentrated power gave it a “fearful influence” over citizens' lives and an unchecked sway over government, inviting corruption and oppression.
Jackson copied Hamilton's headings into his private memorandum book. Over the next two years, he recopied and reworked his bill of particulars, always under the same two heads: The Bank was unconstitutional, and it was dangerous to liberty. Meanwhile, the question of recharter simmered. In his 1830 and 1831 annual messages, Jackson reiterated his opposition to the Bank. He proposed in its stead a wholly government institution—in name a bank, but in effect an arm of the Treasury, without power to make loans, acquire property, or issue notes.
In 1832, Congress acted, but not as Jackson recommended. A bill to extend the charter, slightly modified, of the existing Bank passed both houses by healthy majorities, though less than the two-thirds required to override a veto. To Jackson the bill's timing confirmed his strictures about the Bank's meddling in politics.
Biddle had decided to press for recharter at the urging of Senator Henry Clay, Jackson's opponent in the presidential election only months away. In effect, they dared Jackson to veto.
He did, in a message that became the rhetorical apex of his presidency. Treasury official Amos Kendall and other wordsmiths helped hone the Veto, but the governing ideas, drawn straight from Jackson's memoranda, were clearly his own. Following Jefferson, and contradicting the Supreme Court in McCulloch, Jackson denied the Bank's constitutionality and affirmed his right to judge that question independent of Congress or the courts. Ingeniously, and perversely, he targeted foreign stockholders for special censure. Much of the Bank's stock was, in fact, held abroad, especially in Britain. The charter screened management from foreign interference by barring non citizens from serving as directors or voting their shares. They could invest, but not control. By an economist's rationale, a more benign vehicle for inviting capital into America's developing economy could hardly be contrived. Yet Jackson's arguments turned investment into subversion. Bank dividends, he complained, siphoned off American money overseas, and the immunity of foreign stockholders from domestic taxation would lure ever more stock abroad, concentrating the Bank's control within a narrowing sphere of domestic holders and inviting their subservience to foreign dictation. “If we must have a bank,” Jackson warned, “it should be purely American.”
But the real heart of the Veto was its attack on exclusivity and favoritism. Sounding the loaded words “monopoly” and “privilege” over and over like a tocsin, Jackson laid out his core theme: The Bank's charter gave its stockholders a promise of pelf and power not accessible to other citizens. It made them “a privileged order, clothed both with great political power and enjoying immense pecuniary advantages from their connection with the Government.” Jackson's peroration conveyed both the Veto's essential meaning and its inescapable ambiguity:
It is to be regretted that the rich and powerful too often bend the acts of government to their selfish purposes. Distinctions in society will always exist under every just government. Equality of talents, of education, or of wealth can not be produced by human institutions. In the full enjoyment of the gifts of Heaven and the fruits of superior industry, economy, and virtue, every man is equally entitled to protection by law; but when the laws undertake to add to these natural and just advantages artificial distinctions, to grant titles, gratuities, and exclusive privileges, to make the rich richer and the potent more powerful, the humble members of society-the farmers, mechanics, and laborers-who have neither the time nor the means of securing like favors to themselves, have a right to complain of the injustice of their Government. There are no necessary evils in government. Its evils exist only in its abuses. If it would confine itself to equal protection, and as Heaven does its rains, shower its favors alike on the high and the low, the rich and the poor, it would be an unqualified blessing.
In all the presidential messages—inaugurals, annuals, vetoes—that came before, there is nothing like this.
Other presidents had sometimes warned Americans of foreign perils, or the dangers of factionalism and divisiveness among equally well-disposed and meritorious citizens. Andrew Jackson warned them against their government—and each other.
And yet, what exactly does it mean? Jackson's frank branding of Americans by occupation and circumstance, his bold counterposing of rich and poor, and his solicitude for the working “farmers, mechanics, and laborers” against the “rich and powerful” seemed to many then and later a promulgation of class warfare—an anathema to some, a battle cry for others. Yet his acknowledgment of inevitable wealth disparities and his solution of “equal protection” and minimalist government echo more of market economics than of the welfare state. Some historians see Jackson in a straight line of working-class champions, foes of capitalist dominion, running from Thomas Jefferson through Franklin Roosevelt. Others see him as the spokesman of enterprise, assailing a confining, repressive politico-economic establishment to liberate the wealth-creating energies of “superior industry, economy, and virtue.” There is strong evidence on both sides.
And still another question lurks. If Jackson pointedly stretched the ranks of people who mattered politically to include “farmers, mechanics, and laborers,” did that portend a further extension, beyond the white male electorate, to include women, slaves, and Indians? Without question, Jackson did not himself intend so. But words once spoken may have a life of their own. Whether one sees Jackson's invocation of “the humble members of society” as weighing on the side of inclusion or exclusion, erecting boundaries or breaking them down, has everything to do with how one judges his legacy and reputation.
The veto held up in Congress, as all knew it would. In the ensuing campaign, both sides, remarkably, distributed the message as a campaign document-Jacksonians to show his patriotism and egalitarianism, foes to exhibit his ignorance and demagoguery. Jackson trounced Clay in the election. Afterwards, to defang the Bank, whose present charter was still in effect and whose political resourcefulness was by no means exhausted, Jackson withdrew the federal government's deposits and lodged them with various state-chartered banks. Biddle retaliated by curtailing loans, causing business distress. Intended to force a recharter, his action instead discredited the Bank by reinforcing Jackson's warnings of its irresponsible power. Jackson's removal of the deposits prompted his foes to coalesce under the name of Whigs, a term denoting opponents of royal prerogative. In 1834, a Whig Senate formally censured Jackson—an action which Jacksonians, now calling themselves Democrats, expunged from the Senate record as soon as they gained a majority. The defeated Bank accepted a charter from the Pennsylvania legislature and continued after 1836 as a state institution.
The destruction of the Bank loosed American enterprise from its only central restraint. Gorged with federal deposits and with no one to control their note issues, state banks went on a lending spree that built up a speculative bubble and ended, just as Jackson left office in 1837, in a sickening crash. Jackson's culpability for the ensuing depression is still debated. Jackson himself came to oppose all chartered banks and banknotes, state as well as federal, and to favor a return to gold and silver “hard money”—a radical deflation which Whigs charged would throw progress back a century. In Jackson's farewell address on retiring from office, he elaborated the language of the Veto, condemning bank paper as an engine of oppression and warning of the insidious "money power" and of the growing control exerted by faceless corporations over ordinary citizens' lives.
Jackson's Democratic successors Martin Van Buren and James K. Polk cemented his victory over the Bank. A new independent Treasury assumed the handling of government finances, realizing Jackson's aim of severing government from the business of banking. For a generation, that business remained semi-organized and essentially directionless. The exigencies of the Civil War forced the first steps toward nationalizing the banking system and the currency, a process completed with the creation of the Federal Reserve in 1913.
The immediate circumstances that prompted Andrew Jackson's ringing expostulations have long since passed away. Whether his words carry an enduring message would be for later generations, including our own, to decide for themselves.
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