The Fed Is Not Independent and Never Has Been

BIS2

Source: TheDailyBell.com
February 16, 2017

Yellen defends independence of Federal Reserve … Federal Reserve Board Chair Janet L. Yellen defended the central bank’s independence Wednesday from Republican lawmakers pushing for major changes in how the Fed operates and how regulators oversee the nation’s banking system.

The Federal Reserve is not independent and never has been. It is part of the Bank for International Settlements for one thing. The BIS coordinates central banks around the world. That’s one of the reasons many central banks seem  to do the same things at the same time.

But that’s not the opinion of a House committee which seems to believe that Janet Yellen can do what she wants. GOP lawmakers “challenged Yellen’s handling of the economy and her leadership in implementing the 2010 Dodd-Frank Act.”

“After eight years, there is zero evidence that zero interest rates and a bloated Fed balance sheet lead to a healthy economy,” House Financial Services Chairman Jeb Hensarling (R-Tex.) told Yellen.

Hensarling is going to try to bring legislation that will force Yellen to follow a specific formula requiring the bank to set interest rates in a certain way and then have those rates further scrutinized by the Government Accountability Office.

Yellen  is against this. She says the Fed would be badly crimped by the use of just one single formula.

But the larger issue is that for political reasons the House is wrong about Yellen. She is fully controlled, but the control comes out of England’s square mile city.

The BIS helps coordinate central bank actions around the world. It is for instance so many central banks are trying to keep rates down, even though Yellen may move up a few points.

Meanwhile, London’s city itself is run by the same central bankers and others who ultimately run the Fed. They helped set up central banking some 500 years ago. They still control central banking in the larger sense from what we can tell.

Conclusion: So rather than being free to do what she pleases, Yellen is constrained on all sides. She basically does what she’s told. The only trouble is that it’s not what the current administration wants her to do. But that’s a great deal different than doing what she wants.

Read More At: TheDailyBell.com

Negative Rates and Cash Bans: The Chaos Continues at Jackson Hole

central-banking-dollars
Source: TheDailyBell.com
August 27, 2016

Negative rates should be integral part of central bank policy options … Central banks should make negative interest rates a fully integrated part of monetary policy in order to respond effectively to future recessions, according to an academic paper presented on Friday to some of the world’s top central bankers.  “It is only a matter of time before another cyclical downturn calls for aggressive negative nominal interest rate policy actions,” concludes Marvin Goodfriend, a professor of economics at Carnegie Mellon University and a former policy adviser at the Richmond Federal Reserve bank.  – Reuters

The Federal Reserve meeting at Jackson Hole has been covered by the mainstream media in ways that gave the impression that policy discussions were a kind of theoretical exercise.

Papers were presented on such issues as negative interest rates (see excerpt above) that emphasized an academic context. The idea that comes across is that those involved were earnestly striving to combat US economic dysfunction and current unnaturally low interest rates.

The larger issue here is one that we didn’t find written about: the assumption of the inherent right of policymakers to do what is “necessary” to make the US economy “healthier.”

The debate is certainly cast in theoretical terms but the results will inevitably involve the use of force.

The assumption is that involved in the “monetary debate” will come to a reasoned conclusion that society as a whole will be impelled to adopt. Those who do not wish to adopt such a solution – and who actively resist – may be prosecuted or jailed.

A few days ago, in a lead-up to the conference, the Wall Street Journal published a longish editorial by Dr. Kenneth Rogoff, the Thomas D. Cabot Professor of Public Policy at Harvard University.

Rogoff was also the former chief economist of the International Monetary Fund and the article was taken from an upcoming book, “The Curse of Cash,” to be published in September by Princeton University Press.

Here’s an excerpt:

Money fuels corruption, terrorism, tax evasion and illegal immigration—so the U.S. should get rid of the $100 bill and other large notes … When I tell people that I have been doing research on why the government should drastically scale back the circulation of cash—paper currency—the most common initial reaction is bewilderment. Why should anyone care about such a mundane topic?

But paper currency lies at the heart of some of today’s most intractable public-finance and monetary problems. Getting rid of most of it—that is, moving to a society where cash is used less frequently and mainly for small transactions—could be a big help.

There is little debate among law-enforcement agencies that paper currency, especially large notes such as the U.S. $100 bill, facilitates crime: racketeering, extortion, money laundering, drug and human trafficking, the corruption of public officials, not to mention terrorism

The necessity for this sort argument has to do with the inevitable results of the imposition of negative interest rates. Cash will have to become more difficult to obtain and use because people won’t want to pay banks for placing cash in savings accounts. They might instead wish to hold cash at home so they don’t have to pay a fee.

As stated, the larger issue here is one of compulsion – and its presentation within an academic context. The Wall Street Journal editorial, for instance, is part of a book that will shortly be issued. The discussion of negative interest rates in Jackson Hole was accompanied by a white paper produced by a professor of economics.

The underlying reality is that these astonishingly comprehensive solutions don’t provide a choice. Even negative interest can be seen not as a monetary/policy response but as a kind of tax. An article by Christopher J. Waller (here) characterizes low rates as nothing more than a disguised money grab:

Negative Interest Rates: A Tax in Sheep’s Clothing … A negative interest rate is just a tax on the banks’ reserves. The tax has to be borne by someone: The banks can choose not to pass it on and just have lower after-tax profits. This will depress the share price of banks and weaken their balance sheets by having lower equity values.

This is true – and is an outcome of the way the Fed works. Imposing rates via monopoly authority always constitutes a tax, though this is not something regularly discussed when it comes to Fed “policy.”

Generally speaking, mainstream media coverage wants to present monetary discussions in ways that emphasize its theoretical aspects. But the bottom line is that what’s being discussed is not going to end up as suggestions. Whatever is decided on will have the force of law.

And if we look beyond “theory” to reality, the outcome of these kinds of discussions is invariably bad. Central bank monetary mayhem is everywhere you look. The West – the world, really – is locked into a quasi-depression as a result of a century of failing policies and monetary manipulation.

In the US, Janet Yellen wants to pretend that a “recovery” is ongoing. But if so, it one that does without some 90 million potential workers who choose not to participate – either because they cannot or because they wish to participate outside of the formal economy.

We recently posted an article entitled “Is the Fed Being Torn Down in Order to Create a New, Powerful Global Entity?” (here). When one examines the behavior of the Fed, and of central banks generally, it’s hard to conclude that their real mission is the one presented to us.

Step back far enough to contemplate a century’s worth of results and the reality is clear: Central banks are supposed to destroy the economies they supposedly serve. Ironically, the destruction then provides the opportunity for them to expand.

Giving a small group of individuals the power to decide on the value and volume of money is a ludicrous concept from any standpoint. But he problem is abetted by the mainstream narrative that never discusses the underlying lack of logic.

And so we observe Jackson Hole, which is presented to us as a conclave of elite thinking but which is actually nothing more than high-brow propaganda for a system that has already failed and – as compensation for its failings – now contemplates even more radical “solutions” that will give rise to even worse problems.

Conclusion: The mechanism of central banking is purposeful ruin. The end-result of this ruin is global governance. In the short-term this goal is disguised by an academic patina. But the long-term goal, an increasingly apparent one, is a brutal restructuring of the lives of seven billion people to benefit a handful of elite controllers.

Read More At: TheDailyBell.com

New Gov. Analysis Shows Fed Policies Have Deepened Downturn for Many

moneybubble
Source: TheDailyBell.com
August 21, 2016

Wealthy Have Nearly Healed From Recession; the Poor Haven’t  … The Great Recession and the subsequent recovery from it have deepened the wedge between the very wealthy and everyone else in America, plunging the poor deeper into debt and wiping out two-fifths of the wealth held by families in the heart of the middle class. The wealthiest Americans, meanwhile, appear close to regaining all their losses over the same period, according to an analysis released last week by the Congressional Budget Office. – Washington Post

This analysis helps prove a point we’ve been making for years: Fed stimulation provided by too-low interest rates does NOT stimulate industry only finance and speculation.

The Congressional Report doesn’t seem to mention central banking, so in this article we will rectify the omission. The entire justification for central banking is that it helps policymakers produce prosperity. But it doesn’t.

We don’t need a government analysis to confirm this but it’s useful to have because it illustrates once more the truth of what’s occurring in terms of economic manipulation. The entire apparatus of monetary leadership, and its influence on the marketplace itself, does not deliver what it is supposed to.

The idea is that the Fed provides additional liquidity as necessary. But this is a form of price-fixing. In a  normal economy where the government itself was not involved in “adjusting¨ the value and volume of currency, the value would be provided by the market itself.

This is the way it has traditionally worked throughout history. The last century has been one enormous experiment. But the consequences are obvious.

Say an economy utilizes gold as money. When too much gold circulated in the marketplace, the value relative to what could be purchased would likely decline. As the value declined, less gold would be produced and circulated. Mines would close, etc.

When less gold was produced, demand would build. The competitive marketplace itself would define the value of “money” and thus the contraction or expansion of money stock.

This does not seem to be a complex point. It is generally admitted that the only way to set a valid price is to allow the market itself to produce the value.

But somehow, not when it comes to money.

Then it seems to be universally acknowledge by power brokers in the US and abroad that a monopoly facility (a central bank) is necessary to adjust the price.

It makes no sense. And furthermore it is an example of what we call an elite dominant social theme.

It is paradigm circulated throughout the world that is so prevalent and fundamental that the mainstream media simply doesn’t question it.

Global warming is such a theme (here). Vaccines are such a theme (here). These themes and many others constitute the propaganda launched by governments – and shadowy power brokers – to reinforce and justify authoritarianism.

Every dominant social theme has two parts. The first part is the problem. Fear is to be raised and deepened whenever possible. That’s why so many elite memes focus on scarcity. The world is running out of water, food, air, etc.

The solution is always to be found in government – the bigger the better. The idea is to justify and advance global government (via the UN) whenever possible.

This is one reason that we are suspicious of the “nuclear weapons” narrative that we have been concentrating on of late. It fits perfectly into the fear-based elite paradigm. Nuclear weapons exist and can destroy the world. Only government can stop their spread and usage.

The same paradigm can be spotted when it comes to central banking. The world is ever in danger of recessions and depressions. And only monopoly central banking – the control of the money supply by an elite, technocracy – can save us from poverty.

Questions do arise of course. But always they have to do with the “job” a given central bank is doing. They are policy questions pertaining to the competence of a monopoly money-printing facility.

But the basic functionality is almost never questioned in the Kabuki ritual that passes for establishment dialogue.

But it should be. Unfortunately, as with so many articles in the mainstream media and Washington Post in particular, when something substantive is presented, the analysis is lacking.

The article presents the information but then leaves it lying there like a dead thing. No fundamental explanation is offered.

Here:

The analysis shows the wealthiest 10 percent of Americans now hold three-quarters of the nation’s wealth, up from two-thirds in 1989, and a three percentage-point increase from the start of the recession.

Most Americans found themselves with less wealth in 2013 than Americans of a similar age had in 1989; the only age group doing better than its counterparts from a quarter-century ago was senior citizens.

The report was commissioned at the request of Sen. Bernie Sanders of Vermont, who made inequality a central theme of his run for the Democratic presidential nomination this year.

In a statement, he said the analysis “makes clear that since the 1980s there has been an enormous transfer of wealth from the middle class and the poor to the wealthiest people in this country.”

Of course Sanders has the answer! He doubtless wants MORE government interference so that the problem government has created with its monetary price fixes can be cured by yet more meddling.

When central banks provide more money to the economy than necessary (and there is no way to prove how much IS necessary), the extra cash flows into the hands of the wealthy closest to the central bank money spigot.

Often this money is “invested” in securities exchanges and more money is made. This money doesn’t necessarily translate into industrial stimulation.

The wealthy make more money from central bank processes. But workers are left out of the process.

This is a simple and clear result of monopoly money printing. Price fixing never provides us with expected results. It always damages certain groups at the expense of others.

Over time, monopoly central banking has increasingly impoverished the people it supposedly seeks to help.

And gradually in this Internet era, workers are realizing it. The Fed, for instance, just launched a Facebook page (here). It is already bombarded with negative, nasty comments.

People, more and more of them, do understand the impossibility of improving the economy by giving a handful of people the power to expand or contract the money stock at will.

In simplest terms it is a ridiculous idea. It can’t work. It doesn’t work. And this analysis is further proof.

We’ve been reporting on the gradual decline of central bank – and Federal Reserve – credibility for about a decade now here at DB. Nothing that we have seen leads us to conclude that central banking is held in higher esteem than before.

In other words, the trend is down. And sooner or later the current system will not have the necessary popular support to survive.

While this will be a good development for the prosperity of many, we also know the corollary  difficulty that will emerge. At this point those who stand behind central banking have long-ago concluded the system is not viable.

But that doesn’t mean they will cooperate with removing it. What they will inevitably suggest is that because the current system doesn’t work, a larger, global system is necessary.

The groundwork is already being laid for this global  system. Just yesterday we pointed out that both the ruble and the yuan were being positioned to compete with the dollar. And yet the positioning elements – the IMF and World Bank – were being provided by the West!

The upcoming currency crisis is being manipulated by Western programmatic elements. The solution is to be some sort of increasingly globalized (world) government.

And as this conversation proceeds in the mainstream media, you will find little or no analyses of the price-fixing that inevitably accompanies monopoly central banking at any level.

It will be proposed that global price-fixing will somehow ameliorate the problems coming from regional price fixing of money.

Conclusion: But it won’t. The only path to prosperity is to privatize money and let the market itself calculate its value and volume. This should be done as soon as possible. The disease of central banking should be cured by the application of free-market solutions. We eagerly await this outcome and confidently expect its application within the better part of, hm-mm … a thousand years?

Read More At: TheDailyBell.com

The Real Reason Fed Stress Aren’t Credible

bank-stress-test
Source: TheDailyBell.com
June 23, 2016

Why the Fed’s Stress Tests Aren’t Credible … For the sixth year in a row, the U.S. Federal Reserve is conducting stress tests to see whether the country’s largest banks can withstand a severe crisis. If only the results, to be announced this week and next, were more useful.  -Bloomberg

Federal Reserve stress tests for banks are a fantasy.

They don’t address contagion, for one thing. Contagion makes everything much worse.

The Fed is now going to upgrade its stress test analysis.

Here:

More advanced network analysis, such as that used by the Bank of Canada, can do a better job of addressing contagion effects. And to its credit, the Fed plans to increase the amount of capital required for the largest banks to pass the tests.

To its credit? Not really.

It used to be that banks created solvency by acquiring gold and silver. These days banks are considered solvent depending on their fiat “reserves.”

But the reserves are just debt-based paper money printed by the Fed.

The Fed can print as much fiat as it wants. If you are a big commercial bank, the Fed provides you access to lots of fiat.

And if you are in any trouble, the Fed will print more.

During the crisis of 2008, Ben Bernanke supposedly printed $16 trillion and sent it around the world as short-term loans.

Most supposedly were not paid back. This is one of the reasons that the Fed does not want an audit.

The Fed can print as much money as it wants because the dollar is the world’s reserve currency. Countries are forced to hold dollars to buy oil.

So pretending that that banks can be endangered because they don’t have enough reserves is silly.

The Fed is engaged in propaganda here. It is promoting an elite dominant social theme.

Fed officials want you to take the idea of “money” seriously.

They want you to take the idea of a bank collapse seriously.

But the Fed can print as much money as it wants. It can avert almost any crisis (though price inflation may be a problem later on).

Anyway, they don’t want you to know this.

You need to believe that banking is a difficult business. But it’s not.

It’s a foolproof business so long as the Fed owns a monopoly printing press.

In fact, banking is not really a business anymore for the bigger, “commercial” banks. These banks are basically capital redistribution centers for the Fed.

Of course, those who are partial to central banking want you to believe that commercial banks hold most of the money creation power. But they don’t.

The Fed can choke off money at will by raising rates. The Fed is the hub at the center of the wheel.

The monetary system is based on propaganda not reality. But the Fed and the large banks don’t want you to know that.

They want you to continue to think that banking is a business and that banks need to be well run and aware of “risks.”

These stress tests are part of that determination to delude you.

Continue Reading At: TheDailyBell.com

Thanks To Yellen, Gold Will Bounce Back

gold-coins
Source: TheDailyBell.com
May 31, 2016

Speculative traders abandon gold in latest week  …  Gold prices fell Monday, moving in the opposite direction of the U.S. dollar, which soared after comments by Federal Reserve Chairwoman Janet Yellen last week indicated an interest-rate hike could come this summer.    –MarketWatch

Today, gold prices have been clinging to around $1,200 against the dollar. It is becoming increasingly obvious that the Federal Reserve has two goals.

One is to keep the dollar strong against gold and the other is ensure that the world’s quasi-depression continues.

Yellen doesn’t say so, but this will be the result of her actions.

“It’s appropriate — and I have said this in the past—for the Fed to gradually and cautiously increase our overnight interest rate over time,” Yellen said in a recent speech at Harvard University where she received an award. “Probably in the coming months such a move would be appropriate.”

But it’s probably not appropriate. Nothing in the US economy is signaling “recovery.” US statistics are endlessly optimistic anyway.

We’ve reported previously on this: Yellen is raising rates because she wishes to raise rates not because of any particular financial evolution that is forcing her hand.

In a recent CNBC article, “The Fed could be blindsided by ‘stagflation’,” contributor Michael Pento went even further.

Pento doesn’t seen any real US economic strength. And he believes that if Yellen raises rates, any possibility of a recovery is lessened.

“Janet Yellen is creating ’70’s style stagflation with her monetary policies,” he writes.

Since July of 2015 economic growth has been languishing, while CPI has been rising during a relatively similar time span.  In fact, the most recent month over month increase in the CPI of 0.4 percent was the highest since February 2013.

At the same time, Pento writes that the economy only expanded by 160,000 new jobs in April whereas Wall Street had expected a 203,000 gain.

The Fed is seeking higher employment and low inflation. “What is becoming manifest is the exact opposite.”

Is Yellen prepared for an economic scenario that opposes the one that she anticipates? Pento believes neither Yellen nor Wall Street are prepared for such a turn of events.

In fact, “The government’s effort to engender viable growth through debt and inflation is virtually guaranteed to fail.”

Pento believes the medicine of Paul Volcker is necessary: an  environment of much higher interest rates.

This is because he doesn’t believe the economy is improving but asset bubbles are forming nonetheless. It is these asset bubbles that carry the greatest risk.

Yellen’s slow-motion rate increases do nothing to alleviate these risks.

She is adopting the tactic of raising rates slowly while asset bubbles expand quickly – eventually causing an economic meltdown.

Continue Reading At: TheDailyBell.com

Central Banks Are Trojan Horses, Looting Their Host Nations

Source: GlobalResearch.ca

Source: WashingtonsBlog
February 11, 2016

A Nobel prize winning economist, former chief economist and senior vice president of the World Bank, and chairman of the President’s council of economic advisers (Joseph Stiglitz) says that the International Monetary Fund and World Bank loan money to third world countries as a way to force them to open up their markets and resources for looting by the West.

Do central banks do something similar?

Economics professor Richard Werner – who created the concept of quantitative easing – has documented that central banks intentionally impoverish their host countries to justify economic and legal changes which allow looting by foreign interests.

He focuses mainly on the Bank of Japan, which induced a huge bubble and then deflated it – crushing Japan’s economy in the process – as a way to promote and justify structural “reforms”.

The Bank of Japan has used a heavy hand on Japanese economy for many decades, but Japan is stuck in a horrible slump.

But Werner says the same thing about the European Central Bank (ECB).  The ECB has used loans and liquidity as a weapon to loot European nations.

Indeed, Greece (more), Italy, Ireland (and here) and other European countries have all lost their national sovereignty to the ECB and the other members of the Troika.

ECB head Mario Draghi said in 2012:

The EU should have the power to police and interfere in member states’ national budgets.

***

“I am certain, if we want to restore confidence in the eurozone, countries will have to transfer part of their sovereignty to the European level.”

***

“Several governments have not yet understood that they lost their national sovereignty long ago. Because they ran up huge debts in the past, they are now dependent on the goodwill of the financial markets.”

And yet Europe has been stuck in a depression worse than the Great Depression, largely due to the ECB’s actions.

What about America’s central bank … the Federal Reserve?

Continue Reading At: WashingtonsBlog.com

The Federal Reserve Cartel: The Eight Families – The Freemason BUS & The House of Rothschild [Part 2]

Source: GlobalResearch.ca
Dean Henderson

In 1789 Alexander Hamilton became the first Treasury Secretary of the United States.  Hamilton was one of many Founding Fathers who were Freemasons.  He had close relations with the Rothschild family which owns the Bank of England and leads the European Freemason movement.  George Washington, Benjamin Franklin, John Jay, Ethan Allen, Samuel Adams, Patrick Henry, John Brown and Roger Sherman were all Masons.

Andrew Hamilton

Roger Livingston helped Sherman and Franklin write the Declaration of Independence.  He gave George Washington his oaths of office while he was Grand Master of the New York Grand Lodge of Freemasons.  Washington himself was Grand Master of the Virginia Lodge.  Of the General Officers in the Revolutionary Army, thirty-three were Masons.  This was highly symbolic since 33rd Degree Masons become Illuminated. [1]

Populist founding fathers led by John Adams, Thomas Jefferson, James Madison and Thomas Paine- none of whom were Masons- wanted to completely severe ties with the British Crown, but were overruled by the Masonic faction led by Washington, Hamilton and Grand Master of the St. Andrews Lodge in Boston General Joseph Warren, who wanted to “defy Parliament but remain loyal to the Crown”.  St. Andrews Lodge was the hub of New World Masonry and began issuing Knights Templar Degrees in 1769. [2]


General Joseph Warren

All US Masonic lodges are to this day warranted by the British Crown, whom they serve as a global intelligence and counterrevolutionary subversion network.  Their most recent initiative is the Masonic Child Identification Program (CHIP).  According to Wikipedia, the CHIP programs allow parents the opportunity to create a kit of identifying materials for their child, free of charge. The kit contains a fingerprint card, a physical description, a video, computer disk, or DVD of the child, a dental imprint, and a DNA sample.

The First Continental Congress convened in Philadelphia in 1774 under the Presidency of Peyton Randolph, who succeeded Washington as Grand Master of the Virginia Lodge.  The Second Continental Congress convened in 1775 under the Presidency of Freemason John Hancock.  Peyton’s brother William succeeded him as Virginia Lodge Grand Master and became the leading proponent of centralization and federalism at the First Constitutional Convention in 1787.  The federalism at the heart of the US Constitution is identical to the federalism laid out in the Freemason’s Anderson’s Constitutions of 1723.  William Randolph became the nation’s first Attorney General and Secretary of State under George Washington.  His family returned to England loyal to the Crown.  John Marshall, the nation’s first Supreme Court Justice, was also a Mason. [3]

When Benjamin Franklin journeyed to France to seek financial help for American revolutionaries, his meetings took place at Rothschild banks.  He brokered arms sales via German Mason Baron von Steuben.  His Committees of Correspondence operated through Freemason channels and paralleled a British spy network.  In 1776 Franklin became de facto Ambassador to France.  In 1779 he became Grand Master of the French Neuf Soeurs (Nine Sisters) Lodge, to which John Paul Jones and Voltaire belonged.  Franklin was also a member of the more secretive Royal Lodge of Commanders of the Temple West of Carcasonne, whose members included Frederick Prince of Whales.  While Franklin preached temperance in the US, he cavorted wildly with his Lodge brothers in Europe.  Franklin served as Postmaster General from the 1750’s to 1775 – a role traditionally relegated to British spies. [4]

With Rothschild financing Alexander Hamilton founded two New York banks, including Bank of New York. [5]  He died in a gun battle with Aaron Burr, who founded Bank of Manhattan with Kuhn Loeb financing.  Hamilton exemplified the contempt which the Eight Families hold towards common people, once stating, “All communities divide themselves into the few and the many.  The first are the rich and the well born, the others the mass of the people…The people are turbulent and changing; they seldom judge and determine right.  Give therefore to the first class a distinct, permanent share of government.  They will check the unsteadiness of the second.”[6]

Hamilton was only the first in a series of Eight Families cronies to hold the key position of Treasury Secretary.  In recent times Kennedy Treasury Secretary Douglas Dillon came from Dillon Read (now part of UBS Warburg).  Nixon Treasury Secretaries David Kennedy and William Simon came from Continental Illinois Bank (now part of Bank of America) and Salomon Brothers (now part of Citigroup), respectively.  Carter Treasury Secretary Michael Blumenthal came from Goldman Sachs, Reagan Treasury Secretary Donald Regan came from Merrill Lynch (now part of Bank of America), Bush Sr. Treasury Secretary Nicholas Brady came from Dillon Read (UBS Warburg) and both Clinton Treasury Secretary Robert Rubin and Bush Jr. Treasury Secretary Henry Paulson came from Goldman Sachs.  Obama Treasury Secretary Tim Geithner worked at Kissinger Associates and the New York Fed.

Thomas Jefferson argued that the United States needed a publicly-owned central bank so that European monarchs and aristocrats could not use the printing of money to control the affairs of the new nation.  Jefferson extolled, “A country which expects to remain ignorant and free…expects that which has never been and that which will never be.  There is scarcely a King in a hundred who would not, if he could, follow the example of Pharaoh – get first all the people’s money, then all their lands and then make them and their children servants forever…banking establishments are more dangerous than standing armies.  Already they have raised up a money aristocracy.”  Jefferson watched as the Euro-banking conspiracy to control the United States unfolded, weighing in, “Single acts of tyranny may be ascribed to the accidental opinion of the day, but a series of oppressions begun at a distinguished period, unalterable through every change of ministers, too plainly prove a deliberate, systematic plan of reducing us to slavery”. [7[

But the Rothschild-sponsored Hamilton’s arguments for a private US central bank carried the day.  In 1791 the Bank of the United States (BUS) was founded, with the Rothschilds as main owners.  The bank’s charter was to run out in 1811.  Public opinion ran in favor of revoking the charter and replacing it with a Jeffersonian public central bank.  The debate was postponed as the nation was plunged by the Euro-bankers into the War of 1812.  Amidst a climate of fear and economic hardship, Hamilton’s bank got its charter renewed in 1816.

Old Hickory, Honest Abe & Camelot

In 1828 Andrew Jackson took a run at the US Presidency.  Throughout his campaign he railed against the international bankers who controlled the BUS.  Jackson ranted, “You are a den of vipers.  I intend to expose you and by Eternal God I will rout you out.  If the people understood the rank injustices of our money and banking system there would be a revolution before morning.”

Jackson won the election and revoked the bank’s charter stating, “The Act seems to be predicated on an erroneous idea that the present shareholders have a prescriptive right to not only the favor, but the bounty of the government…for their benefit does this Act exclude the whole American people from competition in the purchase of this monopoly.  Present stockholders and those inheriting their rights as successors be established a privileged order, clothed both with great political power and enjoying immense pecuniary advantages from their connection with government.  Should its influence be concentrated under the operation of such an Act as this, in the hands of a self-elected directory whose interests are identified with those of the foreign stockholders, will there not be cause to tremble for the independence of our country in war…controlling our currency, receiving our public monies and holding thousands of our citizens independence, it would be more formidable and dangerous than the naval and military power of the enemy.  It is to be regretted that the rich and powerful too often bend the acts of government for selfish purposes…to make the rich richer and more powerful.  Many of our rich men have not been content with equal protection and equal benefits, but have besought us to make them richer by acts of Congress.  I have done my duty to this country.”[8]

Populism prevailed and Jackson was re-elected.  In 1835 he was the target of an assassination attempt.  The gunman was Richard Lawrence, who confessed that he was, “in touch with the powers in Europe”. [9]

Still, in 1836 Jackson refused to renew the BUS charter.  Under his watch the US national debt went to zero for the first and last time in our nation’s history.  This angered the international bankers, whose primary income is derived from interest payments on debt.  BUS President Nicholas Biddle cut off funding to the US government in 1842, plunging the US into a depression.  Biddle was an agent for the Paris-based Jacob Rothschild. [10]

The Mexican War was simultaneously sprung on Jackson.  A few years later the Civil War was unleashed, with London bankers backing the Union and French bankers backing the South. The Lehman family made a fortune smuggling arms to the south and cotton to the north.  By 1861 the US was $100 million in debt.  New President Abraham Lincoln snubbed the Euro-bankers again, issuing Lincoln Greenbacks to pay Union Army bills.

The Rothschild-controlled Times of London wrote, “If that mischievous policy, which had its origins in the North American Republic, should become indurated down to a fixture, then that Government will furnish its own money without cost.  It will pay off its debts and be without debt.  It will have all the money necessary to carry on its commerce.  It will become prosperous beyond precedent in the history of the civilized governments of the world.  The brains and the wealth of all countries will go to North America.  That government must be destroyed, or it will destroy every monarchy on the globe.” [11]

The Euro-banker-written Hazard Circular was exposed and circulated throughout the country by angry populists.  It stated, “The great debt that capitalists will see is made out of the war and must be used to control the valve of money.  To accomplish this government bonds must be used as a banking basis.  We are now awaiting Secretary of Treasury Salmon Chase to make that recommendation.  It will not allow Greenbacks to circulate as money as we cannot control that.  We control bonds and through them banking issues”.

The 1863 National Banking Act reinstated a private US central bank and Chase’s war bonds were issued.  Lincoln was re-elected the next year, vowing to repeal the act after he took his January 1865 oaths of office.  Before he could act, he was assassinated at the Ford Theatre by John Wilkes Booth.  Booth had major connections to the international bankers.  His granddaughter wrote This One Mad Act, which details Booth’s contact with “mysterious Europeans” just before the Lincoln assassination.

Following the Lincoln hit, Booth was whisked away by members of a secret society known as Knights of the Golden Circle (KGC).  KGC had close ties to the French Society of Seasons, which produced Karl Marx.  KGC had fomented much of the tension that caused the Civil War and President Lincoln had specifically targeted the group.  Booth was a KGC member and was connected through Confederate Secretary of State Judah Benjamin to the House of Rothschild.  Benjamin fled to England after the Civil War. [12]

Nearly a century after Lincoln was assassinated for issuing Greenbacks, President John F. Kennedy found himself in the Eight Families’ crosshairs.  Kennedy had announced a crackdown on off-shore tax havens and proposed increases in tax rates on large oil and mining companies.  He supported eliminating tax loopholes which benefit the super-rich.  His economic policies were publicly attacked by Fortune magazine, the Wall Street Journal and both David and Nelson Rockefeller.  Even Kennedy’s own Treasury Secretary Douglas Dillon, who came from the UBS Warburg-controlled Dillon Read investment bank, voiced opposition to the JFK proposals. [13]

Kennedy’s fate was sealed in June 1963 when he authorized the issuance of more than $4 billion in United States Notes by his Treasury Department in an attempt to circumvent the high interest rate usury of the private Federal Reserve international banker crowd.  The wife of Lee Harvey Oswald, who was conveniently gunned down by Jack Ruby before Ruby himself was shot, told author A. J. Weberman in 1994, “The answer to the Kennedy assassination is with the Federal Reserve Bank.  Don’t underestimate that.  It’s wrong to blame it on Angleton and the CIA per se only.  This is only one finger on the same hand.  The people who supply the money are above the CIA”. [14]

Fueled by incoming President Lyndon Johnson’s immediate escalation of the Vietnam War, the US sank further into debt.  Its citizens were terrorized into silence.  If they could kill the President they could kill anyone.

The House of Rothschild

The Dutch House of Orange founded the Bank of Amsterdam in 1609 as the world’s first central bank.  Prince William of Orange married into the English House of Windsor, taking King James II’s daughter Mary as his bride.  The Orange Order Brotherhood, which recently fomented Northern Ireland Protestant violence, put William III on the English throne where he ruled both Holland and Britain.  In 1694 William III teamed up with the UK aristocracy to launch the private Bank of England.

The Old Lady of Threadneedle Street- as the Bank of England is known- is surrounded by thirty foot walls.  Three floors beneath it the third largest stock of gold bullion in the world is stored. [15]

The Rothschilds and their inbred Eight Families partners gradually came to control the Bank of England.  The daily London gold “fixing” occurred at the N. M. Rothschild Bank until 2004.  As Bank of England Deputy Governor George Blunden put it, “Fear is what makes the bank’s powers so acceptable.  The bank is able to exert its influence when people are dependent on us and fear losing their privileges or when they are frightened.”[16]

Mayer Amschel Rothschild sold the British government German Hessian mercenaries to fight against American Revolutionaries, diverting the proceeds to his brother Nathan in London, where N.M. (Nathan and Mayer) Rothschild & Sons was established.  Mayer was a serious student of Cabala and launched his fortune on money embezzled from William IX- royal administrator of the Hesse-Kassel region and a prominent Freemason.

Rothschild-controlled Barings bankrolled the Chinese opium and African slave trades.  It financed the Louisiana Purchase.  When several states defaulted on its loans, Barings bribed Daniel Webster to make speeches stressing the virtues of loan repayment.  The states held their ground, so the House of Rothschild cut off the money spigot in 1842, plunging the US into a deep depression.  It was often said that the wealth of the Rothschilds depended on the bankruptcy of nations.  Mayer Amschel Rothschild once said, “I care not who controls a nation’s political affairs, so long as I control her currency”.

War didn’t hurt the family fortune either.  The House of Rothschild financed the Prussian War, the Crimean War and the British attempt to seize the Suez Canal from the French.  Nathan Rothschild made a huge financial bet on Napoleon at the Battle of Waterloo, while also funding the Duke of Wellington’s peninsular campaign against Napoleon.  Both the Mexican War and the Civil War were goldmines for the family.


Nathan Rothschild

One Rothschild family biography mentions a London meeting where an “International Banking Syndicate” decided to pit the American North against the South as part of a “divide and conquer” strategy.  German Chancellor Otto von Bismarck once stated, “The division of the United States into federations of equal force was decided long before the Civil War.  These bankers were afraid that the United States…would upset their financial domination over the world.  The voice of the Rothschilds prevailed.”  Rothschild biographer Derek Wilson says the family was the official European banker to the US government and strong supporters of the Bank of the United States. [17]

Family biographer Niall Ferguson notes a “substantial and unexplained gap” in private Rothschild correspondence between 1854-1860.  He says all copies of outgoing letters written by the London Rothschilds during this Civil War period “were destroyed at the orders of successive partners”. [18]

French and British troops had, at the height of the Civil War, encircled the US.  The British sent 11,000 troops to Crown-controlled Canada, which gave safe harbor to Confederate agents.  France’s Napoleon III installed Austrian Hapsburg family member Archduke Maximilian as his puppet emperor in Mexico, where French troops massed on the Texas border.  Only an 11th-hour deployment of two Russian warship fleets by US ally Czar Alexander II in 1863 saved the United States from re-colonization. [19]

That same year the Chicago Tribune blasted, “Belmont (August Belmont was a US Rothschild agent and had a Triple Crown horse race named in his honor) and the Rothschilds…who have been buying up Confederate war bonds.”

Salmon Rothschild said of a deceased President Lincoln, “He rejects all forms of compromise.  He has the appearance of a peasant and can only tell barroom stories.”  Baron Jacob Rothschild was equally flattering towards the US citizenry.  He once commented to US Minister to Belgium Henry Sanford on the over half a million Americans who died during the Civil War, “When your patient is desperately sick, you try desperate measures, even to bloodletting.”  Salmon and Jacob were merely carrying forth a family tradition.  A few generations earlier Mayer Amschel Rothschild bragged of his investment strategy, “When the streets of Paris are running in blood, I buy”. [20]

Mayer Rothschild’s sons were known as the Frankfurt Five.  The eldest – Amschel – ran the family’s Frankfurt bank with his father, while Nathan ran London operations.  Youngest son Jacob set up shop in Paris, while Salomon ran the Vienna branch and Karl was off to Naples.  Author Frederick Morton estimates that by 1850 the Rothschilds were worth over $10 billion. [21]  Some researchers believe that their fortune today exceeds $100 trillion.

The Warburgs, Kuhn Loebs, Goldman Sachs, Schiffs and Rothschilds have intermarried into one big happy banking family.  The Warburg family- which controls Deutsche Bank and BNP tied up with the Rothschilds in 1814 in Hamburg, while Kuhn Loeb powerhouse Jacob Schiff shared quarters with Rothschilds in 1785.  Schiff immigrated to America in 1865.  He joined forces with Abraham Kuhn and married Solomon Loeb’s daughter.  Loeb and Kuhn married each others sisters and the Kuhn Loeb dynasty was consummated.  Felix Warburg married Jacob Schiff’s daughter.  Two Goldman daughters married two sons of the Sachs family, creating Goldman Sachs.  In 1806 Nathan Rothschild married the oldest daughter of Levi Barent Cohen, a leading financier in London. [22]  Thus, Merrill Lynch super-bull Abby Joseph Cohen and Clinton Secretary of Defense William Cohen are likely descended from Rothschilds.

Today the Rothschild’s control a far-flung financial empire, which includes majority stakes in most world central banks.  The Edmond de Rothschild clan owns the Banque Privee SA in Lugano, Switzerland and the Rothschild Bank AG of Zurich.  The family of Jacob Lord Rothschild owns the powerful Rothschild Italia in Milan.  They are founding members of the exclusive $10 trillion Club of the Isles – which controls corporate giants Royal Dutch Shell, Imperial Chemical Industries, Lloyds of London, Unilever, Barclays, Lonrho, Rio Tinto Zinc, BHP Billiton and Anglo American DeBeers. It dominates the world supply of petroleum, gold, diamonds, and many other vital raw materials. [23]

The Club of the Isles provides capital for George Soros’ Quantum Fund NV – which made substantial financial gains in 1998-99 following the collapse of currencies of Thailand, Indonesia and Russia.  Soros was a major shareholder at George W. Bush’s Harken Energy.  The Club of Isles is led by the Rothschilds and includes Queen Elizabeth II and other wealthy European aristocrats and Nobility.[24]

Perhaps the largest repository for Rothschild wealth today is Rothschilds Continuation Holdings AG – a secretive Swiss-based bank holding company.  By the late 1990s scions of the Rothschild global empire were Barons Guy and Elie de Rothschild in France and Lord Jacob and Sir Evelyn Rothschild in Britain. [25]

Evelyn was chairman of the Economist and a director at DeBeers and IBM UK.

Jacob backed Arnold Schwarzenegger’s California gubernatorial campaign.  He took control of Khodorkovsky’s YUKOS oil shares just before the Russian government arrested him.  In 2010 Jacob joined Rupert Murdoch in a shale oil extraction partnership in Israel through Genie Energy – a subsidiary of IDT Corporation. [26]

Within months, Sarah Palin had hired former IDT executive Michael Glassner as her chief of staff. [27]  Is Palin the Rothschild choice in 2012?

Next : Part III: Knights of the Roundtable and The Illuminati

Read More At: GlobalResearch.ca

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Sources & Notes

[1] The Temple & the Lodge. Michael Bagent & Richard Leigh. Arcade Publishing. New York. 1989. p.259

[2] Ibid. p.219

[3] Ibid. p.253

[4] Ibid. p.233

[5] The Robot’s Rebellion: The Story of the Spiritual Renaissance. David Icke. Gateway Books. Bath, UK. 1994. p.156

[6] Democracy for the Few. Michael Parenti. St. Martin’s Press. New York. 1977. p.51

[7] Fourth Reich of the Rich. Des Griffin. Emissary Publications. Pasadena, CA. 1978. p.171

[8] Ibid. p.173

[9] Rule by Secrecy: The Hidden History that Connects the Trilateral Commission, the Freemasons and the Great Pyramids. Jim Marrs. HarperCollins Publishers. New York. 2000. p.68

[10] The Secrets of the Federal Reserve. Eustace Mullins. Bankers Research Institute. Staunton, VA. 1983. p.179

[11] Human Race Get Off Your Knees: The Lion Sleeps No More. David Icke. David Icke Books Ltd. Isle of Wight. UK. 2010. p.92

[12] Marrs. p.212

[13] Idid. p.139

[14] Ibid p.141

[15] Icke. The Robot’s Rebellion.  p.114

[16] Ibid. p.181

[17] Rothschild: The Wealth and Power of a Dynasty. Derek Wilson. Charles Schribner’s Sons. New York. 1988. p.178

[18] The House of Rothschild. Niall Ferguson. Viking Press New York 1998 p.28

[19] Marrs. p.215

[20] Ibid

[21] “What You Didn’t Know about Taxes and the Crown”. Mark Owen. Paranoia. #41. Spring 2006. p.66

[22] Marrs. p.63

[23] “The Coming Fall of the House of Windsor”. The New Federalist. 1994

[24] “The Secret Financial Network Behind ‘Wizard’ George Soros”. William Engdahl. Executive Intelligence Review. 11-1-96

[25] Marrs. p.86

[26] “Murdoch, Rothschild Invest in Israeli Oil Shale”. Jerusalem Post. November 22, 2010

[27] “Sarah Palin hires chief of staff for PAC”, Huffington Post. February 2011

Dean Henderson is the author of Big Oil & Their Bankers in the Persian Gulf: Four Horsemen, Eight Families & Their Global Intelligence, Narcotics & Terror Network and The Grateful Unrich: Revolution in 50 Countries.  His Left Hook blog is at www.deanhenderson.wordpress.com