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Rothschild banking empire

by Gary North

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The Keynesians and declared anti-Keynesians have joined hands in order to promote an intensely Keynesian error: European fiscal austerity as a negative factor. One contributor in Forbes refers to austerity as a death spiral.

The word “austerity,” beginning with the Greek government’s debt crisis two years ago, has been used by the financial media in one sense, and only one sense: reductions in spending by national governments. The word is not used with respect to the economy as a whole.

More than this: the word has been used to explain the contracting economies of Europe. The reductions in government spending are said to have caused the contracting economies. This explanation is based on textbook Keynesianism.

Keynesians call for increased government spending. This is the heart of Keynesianism. Keynesianism rests on a mantra: “Government spending overcomes recessions.” All else is peripheral: monetary inflation, graduated taxation, and free trade. These peripheral issues will always be sacrificed to the supreme economic premise: “Government spending overcomes recessions.”

This is where every analysis of Keynesianism should begin. Any economic doctrine, any economic policy, any proposed solution to the present crisis should be assessed in terms of the mantra. Anything that does not begin and end with the mantra is not Keynesianism. Anything that does, is.

It is a mark of the supreme triumph of any ideology when the self-professed critics of the ideology adopt both its conclusions and its rhetoric, and do so unknowingly. This means that the promoters of the ideology have set the terms of public discourse. It is very difficult to replace an ideology or worldview, once its promoters have established the terms of discourse.

It can be done, of course. But to do this, the promoters of a rival outlook must expose both the errors of the existing system and the implicit agreement of its supposed critics. This wins no friends among the hapless troops who think they are scoring significant victories by arguing against peripheral aspects of the enemy ideology, while accepting its central presuppositions and main policy prescriptions lock, stock, and barrel. They have been taken in hook, line, and sinker.

PHARAOH AND THE FROGS

A recent example of a well-meaning but conceptually confused anti-Keynesian was published in Forbes. It had a powerful headline: “Keynesianism Is the New Black Death.” It suggested that the great tragedy of Europe today is “austerity.”

As I have already said, the financial media universally define austerity as cuts in government spending. I have never seen the word used in any other way over the last two years. Any author who uses the word in any other way owes it to his readers to explain this new usage. The Forbes article offered no such distinction or alternative definition. I therefore take it at its word: austerity.

If austerity is the great evil, then the implication is inescapable: that which restores government spending and therefore overcomes austerity is positive.

This reminds me of the Pharaoh who decided not to let the Israelites journey for a week to sacrifice to God. Moses and Aaron then attempted to persuade him by way of a series of plagues. One of them was frogs. The land filled up with frogs. Everywhere anyone walked, he stepped on frogs.

The court magicians had to do something about this. They responded by a public display of the power of their magic that matched what Moses and Aaron could do. “And the magicians did so with their enchantments, and brought up frogs upon the land of Egypt” (Exodus 8:7).

Somehow, I imagine Pharaoh screaming at them: “No, no, you blockheads: not more frogs! Fewer frogs!” But the text does not record this.

The solution to the frogs of European recession is not increased government spending. Rather, it is the opposite: reduced government spending. In short, the solution is greater austerity.

AUSTRIANISM’S MANTRA

The Austrian economists also have a mantra: “Reduced taxation increases liberty.” Liberty is necessary for economic growth.

If a contemporary government cannot reduce taxes without going bankrupt, then it must cut spending if it chooses not to go bankrupt.

Europe’s national governments are all going bankrupt. Japan’s is, too. So is America’s. The solution is to cut taxes and cut spending even more.

“Not more government spending. Less government spending!”

“Not larger government deficits. Reduced government deficits!”

“Not higher taxes. Lower taxes!”

“Not more fiat money. Reduced fiat money!”

In short: “Let my people go!”

With this in mind, let us examine an article that argues that austerity is the great threat to Europe’s prosperity.

A DEATH SPIRAL?

The article begins with a survey of European politics. It points out that voters are tossing out politicians in nation after nation. Sarkozy was number eight over the last year. Why is this happening? Here is the proposed answer:

The voters of Spain, Greece, France, etc., understand that their governing elites have pushed their economies into austerity death spirals, and they have been expressing their unhappiness at the ballot box.

The more fundamental question is this: Why did these elites push their respective economies into this supposed death spiral? Why would faithful Keynesian elites do such a thing?

Let us not be naive. The West has been run at the top by Keynesian elites, or politicians holding Keynesian ideas, ever since 1930 – six years before Keynes offered his unreadable justification of politicians’ policies: “The General Theory of Employment, Interest, and Money.”.

The Keynesian central bank pushed Europe’s economies into a boom, 2001 to 2007. The voters loved it. Interest rates were low. There was lots of money to buy houses. The economies of the south – “Club Med” – were booming. So was the honorary member of Club Med: Ireland. Ireland’s property values quadrupled. It was all going to last forever. The elites – especially the economists – issued no warnings, except for Austrian economists, who were dismissed, as always, as dinosaurs.

Then came the bust phase. What the European Central Bank did before 2007 – inflate – it has done more aggressively ever since 2008. Governments ran even larger deficits. They all implemented Keynesian stimuli. This did not work. Europe is falling back into a recession.

In the spring of 2010, investors in northern Europe caught on to the fact that Club Med residents could not compete economically. They kept running deficits with the North. Those easy-going populations were living on money borrowed from the North. So were their governments. They had no intention of ever paying back these loans.

Any why not? This is what Keynesianism teaches. Government loans will not be paid off. Ever. Government debt will grow. So will prosperity.

Two years ago, Greece’s Socialist Party found out just how far in the debt hole the government was. Interest rates then started to rise in PIIGS nations. PIIGS governments were trapped. They could not run ever-larger deficits, because the cost of loans were rising.

That was when the reality of Keynesianism hit: deficits do matter. Money is not free. Debts must be rolled over at market interest rates. The horror!

That was when governments in the South started cutting back on spending. Not much, you understand. The deficits are still unprecedented: above 6% of GDP.

Keynesians labeled this “austerity.”

It is not austerity. It is deficit spending on a massive scale. Austerity is where national governments run surpluses and use excess revenues to pay down the national debt.

There has not been austerity in Europe since approximately 1914.

The gold coin standard enforced austerity, 1815 to 1914. That was its chief function and its great service to mankind. It kept the West’s governments austere. This enabled the private sector to dine at an ever-expanding feast.

Keynesians hate the gold coin standard. That is because they believe that high government spending is the basis of high consumer spending, and consumer spending – not private thrift – is the foundation of prosperity.

The public, which prefers consumer spending to the austerity of thrift, cheers on the politics of Keynesianism. Deficits without end, borrowing without pain, growth without ceasing: Keynesians promise, and voters believe.

But the day of reckoning arrived in 2010. The free money got expensive. The party did not stop, but some of the guests were sent home, to join young adults, who have sat and watched TV, because there are no jobs.

The public feels betrayed. Voters believed in the Keynesian dream, which was articulated by the original Keynesian, who said, “If thou be the son of God, command that these stones be turned into bread” (Matthew 4:3). When the target of this challenge refused to rise to the bait, the Keynesian went looking for other takers. In the second half of the twentieth century, he found them. Lots of them. Millions of them. Politicians promised to accomplish the feat. Voters applauded.

But times have changed, the article tells us.

Unfortunately for Europe and the world right now, there are no pro-growth candidates and/or parties on the Continent to offer relief from the austerity programs that are grinding their economies to dust. With no one to vote for, all that European electorates have been able to do is to vote against. They have sought to register their protest by defeating incumbents.

The incumbents over-promised. They had long told the voters that deficits don’t matter. Deficits did not matter for as long as banks in northern Europe kept lending to PIIGS at rates associated with German frugality. But then came reality.

Europe as a whole is in recession, and Greece, Spain, and Portugal are in depressions. What are the people supposed to do if the economic chefs on both the political Left and the political Right are offering the same poisonous “austerity” menu?

Balanced budgets remain mirages a far as the eye can see. Token spending cuts, which are made in the name of reducing deficits to about 3% of GDP in ten years, are part of a “poisonous austerity menu.” Put in a more familiar terminology, there are too many stones and not enough bread. The voters will not tolerate this.

The reason why there are no economic chefs promoting growth is simple: somebody has to bankroll the growth of government spending. Who will that be? Who wants to trust PIIGS?

The louder the voters scream about austerity, the fewer the number of lenders, meaning lenders at rates under 10%.

PLAGUE!

The article eventually gets to the point.

So, what happened in Europe? The short answer is, “plague”. The Black Death of the 14th century was caused by the Yersinia pestis bacterium, which was spread by rats. Today’s plague is the result of Keynesianism, which is being spread by the economics departments of major universities and The New York Times. Unfortunately, unlike Yersinia pestis, Keynesianism does not respond to antibiotics.

How does the article define Keynesianism? Erroneously. It says that Keynesians favor tax increases and spending cuts.

Austerity, as currently being practiced in Europe, is based upon the Keynesian belief that tax increases and government spending cuts have the same effect upon both the government deficit and the economy. In fact, the most virulent strains of Keynesianism cause people to believe that raising top marginal tax rates and increasing government spending can actually boost GDP, because “the rich” have a higher “marginal propensity to save” than do the recipients of government handouts.

Fran‡ois Hollande, the winner of Sunday’s election in France, is a Keynesian. He believes that raising France’s top marginal tax rate to 75% while hiring 60,000 more unionized teachers will make things better.

Excuse me? What does an avowed socialist politician have to do with Keynesianism? Keynesianism is what Paul Krugman proclaims, which is greater deficit spending, plus sufficient central bank money expansion to finance this expansion.

Which Keynesian economist or politician has come out forthrightly for spending cuts, i.e., austerity? Austrian economists have. Ron Paul has. This is why Austrians and Ron Paul have been marginalized by the Keynesian media as cranks.

To a leader whose mind is infected by Keynesianism, it makes sense to try to close a budget deficit with a combination of tax increases and spending cuts, with the balance between them determined by some combination of political considerations and “fairness”.

There are many politicians in Europe who have imposed taxes on the rich. The voters have cheered them on, as always. The voters are outraged by the spending cuts. Spending cuts reduce the flow of funds to government bureaucrats and welfare state clients. This is why Greek union members riot.

Traditional Keynesianism calls for increased spending, more borrowing, and – if private lenders demand high rates of interest – monetary expansion by the central bank to purchase government debt. The article wisely rejects monetization. But it does not call for a gold coin standard. Rather, it defends the euro.

As damaging as tax increases are to an economy, monetary depredation is worse. Only a Keynesian could think that replacing the euro with a new drachma could be a solution for Greece. The result would be a new currency backed by the full faith and credit of a government in which no one has faith and to which no one will extend credit. In reality, the collapse of the Greek economy would not even wait for the introduction of the new currency. It would not be possible to keep preparations for a new drachma a secret, and even rumors of such a move would be enough to create a cataclysmic run on the Greek banking system. Capital, and people with capital, would flee.

The article suffers from an illusion: that the euro is not just another medium for inflation, that it is anything more than drachmas for Keynesians.

The Keynesian political hierarchy imposed the euro on the voters in 1999. The elite’s spokesmen have decried the departure of Greece from the eurozone. The unelected Greek technocrats, like technocrats all over Europe, were either former Goldman Sachs employees or wanna-be’s. They are now being tossed out by the voters. The voters are populists and socialists. They are fellow travelers of Keynesians only in the boom phase of the Keynesian welfare state. When the bills come due, they revert to locally issued fiat money, taxation of the rich, trade unionism, and increased government spending.

CONCLUSION

Keynesianism is in a death spiral. So is populist socialism. So is fiat money fascism. They are all in death spirals because they all reject this premise: “Lower taxes increase liberty.”

Liberty will prevail. This is an eschatological affirmation. One of the ways that it will prevail is through the bankruptcy of the Keynesian social order: high taxation, high regulation, high deficit spending, and high inflation.

Let’s put government on a diet. Let’s have austerity where it belongs: government spending.

That is what Europe’s voters do not want. That is what they are going to get.

“Not less austerity. More austerity!”

May 12, 2012

Gary North [send him mail] is the author of Mises on Money. Visit http://www.garynorth.com. He is also the author of a free 20-volume series, An Economic Commentary on the Bible.

The Rothschilds have been in control of the world for a very long time, their tentacles reaching into many aspects of our daily lives, as is documented in the following timeline. However, before you jump to the timeline, please read this invaluable introduction which will tell you who the Rothschilds are as oppose to who they claim to be.

The Rothschilds claim that they are Jewish, when in fact they are Khazars. They are from a country called Khazaria, which occupied the land locked between the Black Sea and the Caspian Sea which is now predominantly occupied by Georgia. The reason the Rothschilds claim to be Jewish is that the Khazars under the instruction of the King, converted to the Jewish faith in 740 A.D., but of course that did not include converting their Asiatic Mongolian genes to the genes of the Jewish people.

You will find that approximately 90% of people in the world today who call themselves Jews are actually Khazars, or as they like to be known, Ashkenazi Jews. These people knowingly lie to the world with their claims that the land of Israel is theirs by birthright, when in actual fact their real homeland is over 800 miles away in Georgia.

So, next time you hear an Israeli Prime Minister bleating about the so-called persecution of the Jews, consider this, every Prime Minister of Israel has been an Ashkenazi Jew. Therefore when all these Prime Ministers have curried favour with the West for their re-establishment of a Jewish homeland, they have knowingly and deliberately lied to you, as they were never from that region, and they well know it, because it is they who call themselves Ashkenazi Jews.

The Book of Revelation, Chapter 2, Verse 9, states the following which would appear to be about these Ashkenazi Jews:

“I know thy works, and tribulation and poverty, (but thou art rich) and I know the blasphemy of them which say they are Jews, and are not, but are the synagogue of Satan.”

The most wealthy bloodline in the world bar none and the leader of the Ashkenazi Jews in the world today is the Rothschild family. As you will see in the timeline, the Rothschilds have obtained this position through lies, manipulation and murder. Their bloodline also extends into the Royal Families of Europe, and the following family names: Astor; Bundy; Collins; duPont; Freeman; Kennedy; Morgan; Oppenheimer; Rockefeller; Sassoon; Schiff; Taft; and Van Duyn.

However, these are not the only bloodlines to worry about. You are probably aware of the centuries old pratice undertaken by many Ashkenazi Jews whereby they would change their name, in order for them to appear part of the dominant race of the country in which they lived, so as they could obtain influential positions in that country, which they would then exploit to serve their real masters elsewhere. There is plenty of evidence to prove the Rothschilds continue that deceptive tradition.

Furthermore the Rothschilds are known to sire many children secretly that they can put into positions of power when required. This started with the very first man who took the name Rothschild, who had a secret sixth son. Finally, remember the world is a diverse place, I could if I wanted change my name to Rothschild, or any of the names listed above, and that would not make me part of this family anymore than converting to Judaism in 740 A.D. will make these Ashkenazis Jewish.

Please, therefore, do not automatically assume someone you see with the name Rothschild or any of the names listed above are part of the Rothschild criminal network. Furthermore and most importantly, the majority of Ashkenazi Jews are innocent and not part of this network. Check the facts out for yourself first, this article is designed to inform people who the enemy is, not single out people of a particular race or people with a particular surname, who may have nothing to do with this Rothschild criminal network.

1743: Mayer Amschel Bauer, an Ashkenazi Jew, is born in Frankfurt, Germany, the son of Moses Amschel Bauer, a money lender and the proprietor of a counting house.

Moses Amschel Bauer places a red sign above the entrance door to his counting house. This sign is a red hexagram (which geometrically and numerically translates into the number 666) which under Rothschild instruction will end up on the Israeli flag some two centuries later.

1753: Gutle Schnaper, an Ashkenazi Jew (future wife of Mayer Amschel Bauer), born to respected merchant, Wolf Salomon Schnaper.

1760: During this decade Mayer Amschel Bauer works for a bank owned by the Oppenheimers’ in Hanover, Germany. He is highly successful and becomes a junior partner. Whilst working at the bank he becomes acquainted with General von Estorff.

Following his father’s death, Bauer returns to Frankfurt to take over his father’s business. Bauer recognises the significance of the red hexagram and changes his name from Bauer to Rothschild, after the red hexagram or sign signifying 666 hanging over the entrance door (“Rot,” is German for, “Red,” “Schild,” is German for, “Sign”).

Now Mayer Amschel Rothschild, he discovers that General von Estorff is now attached to the court of Prince William IX of Hesse-Hanau, one of the richest royal houses in Europe, which gained its’ wealth by the hiring out of Hessian soldiers to foreign countries for vast profits (a practice that continues today in the form of exporting, “peacekeeping,” troops throughout the world).

He therefore makes the General’s re-acquaintance on the pretext of selling him valuable coins and trinkets at discounted prices. As he plans, Rothschild is subsequently introduced to Prince William himself who is more than pleased with discounted prices he charges for his rare coins and trinkets, and Rothschild offers him a bonus for any other business the Prince can direct his way.

Rothschild subsequently becomes close associates with Prince William, and ends up doing business with him and members of the court. He soon discovers that loaning money to governments and royalty is more profitable than loaning to individuals, as the loans are bigger and are secured by the nation’s taxes.

1769: Mayer Amschel Rothschild is given permission by Prince William to hang a sign on the front of his business premises declaring that he is, “M. A. Rothschild, by appointment court factor to his serene highness, Prince William of Hanau.”

1770: Mayer Amschel Rothschild draws up plans for the creation of the Illuminati and entrusts Ashkenazi Jew, Adam Weishaupt, a Crypto-Jew who was outwardly Roman Catholic, with its organization and development. The Illuminati is to be based upon the teachings of the Talmud, which is in turn, the teachings of Rabbinical Jews. It was to be called the Illuminati as this is a Luciferian term which means, keepers of the light.

Mayer Amschel Rothschild marries Gutle Schnaper.

1773: Amschel Mayer Rothschild born, the first of Mayer Amschel Rothschild’s sons. He like all his brothers who follow him, will enter the family business at the age of 12.

1774: Salomon Mayer Rothschild born.

1776: Adam Weishaupt officially completes his organisation of the Illuminati on May 1 of this year. The purpose of the Illuminati is to divide the goyim (all non-Jews) through political, economic, social, and religious means. The opposing sides were to be armed and incidents were to be provided in order for them to: fight amongst themselves; destroy national governments; destroy religious institutions; and eventually destroy each other.

Weishaupt soon infiltrates the Continental Order of Freemasons with this Illuminati doctrine and establishes lodges of the Grand Orient to be their secret headquarters. This was all under the orders and finance of Mayer Amschel Rothschild and the concept has spread and is followed within Masonic Lodges worldwide to the present day.

Weishaupt also recruits 2,000 paid followers including the most intelligent men in the field of arts and letters, education, science, finance,and industry. They were instructed to follow the following methods in order to control people.

1) Use monetary and sex bribery to obtain control of men already in high places, in the various levels of all governments and other fields of endeavour. Once influential persons had fallen for the lies, deceits, and temptations of the Illuminati they were to be held in bondage by application of political and other forms of blackmail, threats of financial ruin, public exposure, and fiscal harm, even death to themselves and loved members of their families.

2) The faculties of colleges and universities were to cultivate students possessing exceptional mental ability belonging to well-bred families with international leanings, and recommend them for special training in internationalism, or rather the notion that only a one-world government can put an end to recurring wars and strife. Such training was to be provided by granting scholarships to those selected by the Illuminati.

3) All influential people trapped into coming under the control of the Illuminati, plus the students who had been specially educated and trained, were to be used as agents and placed behind the scenes of all governments as experts and specialists. This was so they would advise the top executives to adopt policies which would in the long-run serve the secret plans of the Illuminati one-world conspiracy and bring about the destruction of the governments and religions they were elected or appointed to serve.

4) To obtain absolute-control of the press, at that time the only mass-communications media which distributed information to the public, so that all news and information could be slanted in order to make the masses believe that a one-world government is the only solution to our many and varied problems.

1777: Nathan Mayer Rothschild born.

1784: Adam Weishaupt issues his order for the French Revolution to be started by by Maximilien Robespierre in book form. This book was written by one of Weishaupt’s associates, Xavier Zwack, and sent by courier from Frankfurt to Paris. However en route there, the courier is struck by lightning, the book detailing this plan discovered by the police, and handed over to the Bavarian authorities.

As a consequence, the Bavarian government orders the police to raid Weishaupt’s masonic lodges of the Grand Orient, and the homes of his most influential associates. Clearly, the Bavarian authorities were convinced that the book that was discovered was a very real threat by a private group of influential people, to use wars and revolutions to achieve their political ends.

1785: The Bavarian government outlaw the Illuminati and close all the Bavarian lodges of the Grand Orient.

Mayer Amschel Rothschild moves his family home to a five storey house in Frankfurt which he shares with the Schiff family.

1786: The Bavarian government publish the details of the Illuminati plot in a document entitled, “The Original Writings of The Order and Sect of The Illuminati.” They then send this document to all the heads of church and state throughout Europe, but sadly their warning is ignored.

1788: Kalmann (Carl) Mayer Rothschild Born.

1789: Due to the European ignorance of the Bavarian government’s warning, the Illuminati’s plan for a French Revolution succeeded from this year to 1793. This revolution was a bankers’ dream, it established a new constitution and passed laws that forbade the Roman Church from levying tithes (taxes) and also removed its exemption from taxation.

1790: Mayer Amschel Rothschild states,

“Let me issue and control a nation’s money and I care not who writes the laws.”

1791: The Rothschilds get, “control of a nation’s money,” through Alexander Hamilton (their agent in George Washington’s cabinet) when they set up a central bank in the USA called the First Bank of the United States. This is established with a 20 year charter.

1792: Jacob (James) Mayer Rothschild born.

1796: Amschel Mayer Rothschild marries Eva Hanau.

1798: John Robison publishes a book entitled, “Proofs of a Conspiracy Against All the Religions and Governments of Europe Carried on in the Secret Meetings of Freemasons, Illuminati and Reading Societies.” In this book, Professor Robison of the University of Edinburgh, one of the leading intellects of his time, who in 1783 was elected general secretary of the Royal Society of Edinburgh, gave details of the whole Rothschild Illuminati plot.

He advised how he had been a high degree mason in the Scottish Rite of Freemasonry, and had been invited by Adam Weishaupt to Europe, where he had been given a revised copy of Weishaupt’s conspiracy. However, although he pretended to go along with it, Professor Robison did not agree with it and therefore published his aforementioned book. The book included details of the Bavarian government’s investigation into the Illuminati and the French Revolution.

That same year on July 19th, David Pappen, President of Harvard University, lectured the graduating class on the influence illuminism was having on American politics and religion.

At the age of 21, Nathan Mayer Rothschild leaves Frankfurt for England, where with a large sum of money given to him by his father, he sets up a banking house in London.

1800: Salomon Mayer Rothschild marries Caroline Stern.

1806: Napolean states that it is his,

“object to remove the house of Hess-Cassel from rulership and to strike it out of the list of powers.”

On hearing this, Prince William IX of Hesse-Hanau, flees Germany, goes to Denmark and entrusts his fortune valued at $3,000,000 at that time to Mayer Amschel Rothschild for safekeeping.

Nathan Mayer Rothschild marries Hannah Barent Cohen the daughter of a wealthy London merchant.

1808: Nathan Mayer Rothschild has his first son born Lionel Nathan de Rothschild.

1810: Sir Francis Baring and Abraham Goldsmid die. This leaves Nathan Mayer Rothschild as the remaining major banker in England.

Salomon Mayer Rothschild goes to Vienna, Austria and sets up the bank, M. von Rothschild und Sohne.

1811: The charter for the Rothschilds Bank of the United States runs out and Congress votes against its renewal. Nathan Mayer Rothschild is not amused and he states,

“Either the application for renewal of the charter is granted, or the United States will find itself involved in a most disastrous war.”

However the United States stands firm and the Charter is not renewed, which causes Nathan Mayer Rothschild to issue another threat,

“Teach those impudent Americans a lesson. Bring them back to colonial status.”

1812: Backed by Rothschild money, and Nathan Mayer Rothschild’s orders, the British declare war on the United States. The Rothschilds plan was to cause the United States to build up such a debt in fighting this war that they would have to surrender to the Rothschilds and allow the charter for the Rothschild owned First Bank of the United States to be renewed.

Mayer Amschel Rothschild dies. In his will he lays out specific laws that the House of Rothschild were to follow: all key positions in the family business were only to be held by family members; only male members of the family were allowed to participate in the family business, this included a reported sixth secret bastard son (It is important to note that Mayer Amschel Rothschild also has five daughters, so today the spread of the Rothschild Zionist dynasty without the Rothschild name is far and wide, and Jews believe the mixed offspring of a Jewish mother is solely Jewish); the family was to intermarry with it’s first and second cousins to preserve the family fortune (of the 18 marriages by Mayer Amschel Rothschild’s grandchildren, 16 were between first cousins – a practice known today as inbreeding); no public inventory of his estate was to be published; no legal action was to be taken with regard to the value of the inheritance; the eldest son of the eldest son was to become the head of the family (this condition could only be overturned when the majority of the family agreed otherwise).

This was straightaway the case and Nathan Mayer Rothschild was elected head of the family following his father, Mayer Amschel Rothschild’s death.

Jacob (James) Mayer Rothschild goes to Paris, France to set up the bank, de Rothschild Freres.

Nathaniel de Rothschild, the son in law of Jacob (James) Mayer Rothschild, born.

1814: With regard to the $3,000,000 Prince William IX of Hesse-Hanau had entrusted to Mayer Amschel Rothschild for safekeeping, for an account of what happened next we turn to the Jewish Encyclopaedia, 1905 edition, Volume 10, page 494, which states,

“According to legend this money was hidden away in wine casks, and, escaping the search of Napoleon’s soldiers when they entered Frankfurt, was restored intact in the same casks in 1814, when the elector (Prince William IX of Hesse-Hanau) returned to the electorate (Germany). The facts are somewhat less romantic, and more businesslike.”

This last line indicates the money was never returned by Rothschild to Prince William IX of Hesse-Hanau. The encyclopaedia goes on to state,

“Nathan Mayer Rothschild invested this $3,000,000 in, gold from the East India Company knowing that it would be needed for Wellington’s peninsula campaign.”

On the stolen money Nathan made,

“no less than four profits:

i) On the sale of Wellington’s paper which he bought at 50 cents on the dollar and collected at par;
ii) on the sale of gold to Wellington;
iii) on its repurchase; and
iv) on forwarding it to Portugal.”

1815: The five Rothschild brothers work to supply gold to both Wellington’s army (through Nathan in England) and Napoleon’s army (through Jacob in France), and begin their policy of funding both sides in wars. The Rothschilds love wars because they are massive generators of risk free debt.

This is because they are guaranteed by the government of a country, and therefore the efforts of the population of that country, and it doesn’t matter if that country loses the war because the loans are given on the guarantee that the victor will honour the debts of the vanquished.

Whilst the Rothschilds are funding both sides in this war, they use the banks they have spread out across Europe to give them the opportunity to set up an unrivalled postal service network of secret routes and fast couriers. The post these couriers carried was to be opened up by these couriers and their details given to the Rothschilds so they always were one step ahead of current events.

Furthermore, these Rothschild couriers were the only merchants allowed to pass through the English and French blockades. It was these couriers who also kept Nathan Mayer Rothschild up to date with how the war was going so he could use that intelligence to buy and sell from his position on the stock exchange in accordance with that intelligence.

One of Rothschild’s couriers was a man named Rothworth. When the outcome of the Battle of Waterloo was won by the British, Rothworth took off for the Channel and was able to deliver this news to Nathan Mayer Rothschild, a full 24 hours before Wellington’s own courier.

At that time British bonds were called consuls and they were traded on the floor of the stock exchange. Nathan Mayer Rothschild instructed all his workers on the floor to start selling consuls. The made all the other traders believe that the British had lost the war so they started selling frantically.

Therefore the consuls plummeted in value which was when Nathan Mayer Rothschild discreetly instructed his workers to purchase all the consuls they could lay their hands on.

When news came through that the British had actually won the war, the consuls went up to a level even higher than before the war ended leaving Nathan Mayer Rothschild with a return of approximately 20 to 1 on his investment.

This gave the Rothschild family complete control of the British economy, now the financial centre of the world following Napolean’s defeat, and forced England to set up a new Bank of England, which Nathan Mayer Rothschild controlled.

Interestingly 100 years later the New York Times would run a story stating that Nathan Mayer Rothschild’s grandson had attempted to secure a court order to suppress publication of a book which had this insider trading story in it. The Rothschild family claimed the story was untrue and libellous, but the court denied the Rothschilds request and ordered the family to pay all court costs.

Back to 1815, this is the year Nathan Mayer Rothschild makes his famous statement,

“I care not what puppet is placed upon the throne of England to rule the Empire on which the sun never sets. The man who controls Britain’s money supply controls the British Empire, and I control the British money supply.”

He would go onto brag that in the 17 years he had been in England he had increased the 20,000 stake given to him by his father, 2500 times to 50 million.

The Rothschilds also use their control of the Bank of England to replace the method of shipping gold from country to country and instead used their five banks spread across Europe to set up a system of paper debits and credits, the banking system of today.

By the end of this century, a period of time that was known as the, “Age of the Rothschilds,” it is estimated that the Rothschild family controlled half the wealth of the world.

However something that did not go well for the Rothschilds this year was the Congress of Vienna, which started in September, 1814 and concluded in June of this year. The reason for this Congress of Vienna, was for the Rothschilds to create a form of world government, to give them complete political control over much of the civilized world.

Many of the European governments were in debt to the Rothschilds, so they figured they could use that as a bargaining tool. However the Tsar Alexander I of Russia, who had not succumbed to a Rothschild central bank, would not go along with the plan, so the Rothschild world government plan failed.

Enraged by this, Nathan Mayer Rothschild swore that some day he or his descendants would destroy the Tsar Alexander I’s entire family and descendants. Unfortunately he was true to his word and 102 years later Rothschild funded Bolsheviks would act upon that promise.

Interestingly, world government fanatic and Ashkenazi Jew, Henry Kissinger, did his doctoral dissertation on the Congress of Vienna.

1816: The American Congress passes a bill permitting yet another Rothschild dominated central bank, which gives the Rothschilds control of the American money supply again. This is called the Second Bank of the United States and is given a twenty year charter. The British war against the America therefore ends with the deaths of thousands of British and American soldiers, but the Rothschilds get their bank.

1818: Following the French securing massive loans in 1817 in order to help rebuild after their disastrous defeat at Waterloo, Rothschild agents bought vast amounts of French government bonds causing their value to increase.

On November 5th they dumped the lot on the open market causing their value to plummet and France to go into a financial panic. The Rothschilds then stepped in to take control of the French money supply. This was the same year the Rothschilds were able to loan 5,000,000 to the Prussian government.

1821: Kalmann (Carl) Mayer Rothschild was sent to Naples, Italy. He would end up doing a lot of business with the Vatican and Pope Gregory XVI subsequently conferred upon him the Order of St. George.

Also, whenever the Pope received Kalmann, he would give him his hand rather than the customary toe to kiss, which showed the extent of Kalmann’s power over the Vatican.

1822: The emperor of Austria made the five Rothschild brothers Barons. Nathan Mayer Rothschild chose not to take up the title.

1823: The Rothschilds take over the financial operations of the Catholic Church, worldwide.

1827: Sir Walter Scott publishes his nine volume set, The life of Napolean and in volume two he states that the French Revolution was planned by the Illuminati (Adam Weishaupt) and was financed by the money changers of Europe (The Rothschilds).

1832: President Andrew Jackson (the 7th President of the United States from 1829 to 1837), runs the campaign for his second term in office under the slogan, “Jackson And No Bank!” This is in reference to his plan to take the control of the American money system to benefit the American people, not for the profiteering of the Rothschilds.

1833: President Andrew Jackson starts removing the government’s deposits from the Rothschild controlled, Second Bank of the United States and instead deposits them into banks directed by democratic bankers.

This causes the Rothschilds to panic and so they do what they do best, contract the money supply causing a depression. President Jackson knows what they are up to and later states,

“You are a den of thieves vipers, and I intend to rout you out, and by the Eternal God, I will rout you out.”

1834: The Italian revolutionary leader, Guiseppe Mazzini, is selected by the Illuminati to direct their revolutionary program throughout the world and would serve in that capacity until he died in 1872.

1835: On January 30, an assassin tries to shoot President Jackson, but miraculously both of the assassin’s pistols misfired. President Jackson would later claim that he knew the Rothschilds were responsible for that attempted assassination. He is not the only one, the assassin, Richard Lawrence, who was found not guilty by reason of insanity, later bragged that powerful people in Europe had hired him and promised to protect him if he were caught.

The Rothschilds acquire the rights in the Almaden quicksilver mines in Spain. This was at the time the biggest concession in the world and as quicksilver was a vital component in the refining of gold or silver this gave the Rothschilds a virtual world monopoly.

1836: Following his years of fighting against the Rothschilds and their central bank in America, President Andrew Jackson finally succeeds in throwing the Rothschilds central bank out of America, when the bank’s charter is not renewed. It would not be until 1913 that the Rothschilds would be able to set up their third central bank in America, the Federal Reserve, and to ensure no mistakes are made, this time they will put one of their own bloodline, Jacob Schiff, in charge of the project.

Nathan Mayer Rothschild dies and the control of his bank, N. M. Rothschild & Sons is passed on to his younger brother, James Mayer Rothschild.

1837: The Rothschilds send one of their own, August Belmont, an Ashkenazi Jew, to America to salvage their banking interests defeated by President Andrew Jackson.

1840: The Rothschilds become the Bank of England’s bullion brokers. They set up agencies in California and Australia.

1841: President John Tyler (the 10th President of the United States From 1841 to 1845) vetoed the act to renew the charter for the Bank of the United States. He goes on to receive hundreds of letters threatening him with assassination.

1844: Salomon Mayer Rothschild purchases the United Coal Mines of Votkovice and Austro-Hungarian Blast Furnace Company that would go on to be one of the top ten global industrial concerns.

Benjamin Disraeli, an Ashkenazi Jew (who would go on to become British Prime Minister twice – the only admitted Ashkenazi Jew to do so) publishes Coningsby, in which he characterises Nathan Mayer Rothschild as,

“the Lord and Master of the money markets of the world, and of course virtually Lord and Master of everything else. He literally held the revenues of Southern Italy in pawn, and Monarchs and Ministers of all countries courted his advice and were guided by his suggestions.”

1845: The Great American Patriot, Andrew Jackson (7th President of the United States) dies.

Before his death he is asked what he regarded his as greatest achievement. He replies without hesitation,

“I Killed The Bank,”

This is in reference to the fact he banished the Rothschilds Second Bank of the United States in 1836.

Jacob (James) Mayer Rothschild (who by now had married his niece, Betty, Salomon Mayer Rothschild’s daughter), now known as Baron James de Rothschild, wins the contract to build the first major railway line across the country.

This was called the Chemin De Fer Du Nord and ran initially from Paris to Valenciennes and then joined with the Austrian rail network built by his brother (and wife’s father – all sounds a bit sordid doesn’t it) Salomon Mayer Rothschild.

1847: Lionel De Rothschild now married to the daughter of his uncle, Kalmann (Carl) Mayer Rothschild, is elected to the parliamentary seat for the City of London.

A requirement for entering parliament was to take an oath in the true faith of a Christian. Lionel De Rothschild refused to do this as he was Jewish and his seat in parliament remained empty for 11 years until new oaths were allowed. He must have been an invaluable representative for his constituency, bearing in mind he could never vote on any bill as he never entered parliament! I wonder how he managed to keep his parliamentary seat for 11 years?

1848: Karl Marx, an Ashkenazi Jew, publishes, “The Communist Manifesto.” Interestingly at the same time as he is working on this, Karl Ritter of Frankfurt University was writing the antithesis which would form the basis for Freidrich Wilhelm Nietzsche’s, “Nietzscheanism.” This Nietzecheanism was later developed into Fascism and then into Nazism and was used to forment the first and second world wars.

Marx, Ritter, and Nietzsche were all funded and under the instruction of the Rothschilds. The idea was that those who direct the overall conspiracy could use the differences in those two so-called ideologies to enable them to divide larger and larger factions of the human race into opposing camps so that they could be armed and then brainwashed into fighting and destroying each other, and particularly, to destroy all political and religious institutions. The same plan put forward by Weishaupt in 1776.

Eva Hanau, Amschel Mayer Rothschild’s wife dies.

1849: Gutle Schnaper, Mayer Amschel Rothschild’s wife dies. Before her death she would nonchalantly state,

“If my sons did not want wars, there would be none.”

1850: Construction begins this decade on the manor houses of Mentmore in England and Ferrieres in France, more Rothschilds Manors will follow throughout the world, all of them filled with works of art.

Jacob (James) Rothschild in France is said to be worth 600 million francs, which at the time was 150 million francs more than all the other bankers in France put together.

1852: N.M. Rothschild & Sons begins refining gold and silver for the Royal Mint and the Bank of England and other international customers.

1853: Nathaniel de Rothschild, the son in law of Jacob (James) Mayer Rothschild, purchases Ch�teau Brane Mouton, the Bordeaux vineyard of Mouton, and renames it Ch�teau Mouton Rothschild.

1854: Caroline Stern, Salomon Mayer Rothschild�s wife, dies.

1855: Amschel Mayer Rothschild dies.

Salomon Mayer Rothschild dies.

Kalmann (Carl) Mayer Rothschild dies.

1858: Lionel De Rothschild finally takes his seat in parliament when the requirement to take an oath in the true faith of a Christian is broadened to include other oaths. He becomes the first Jewish member of the British parliament.

1861: President Abraham Lincoln (16th President of the United States from 1860 till his assassination in 1865) approaches the big banks in New York to try to obtain loans to support the ongoing American civil war. As these large banks were heavily under the influence of the Rothschilds, they offer him a deal they know he cannot accept, 24% to 36% interest on all monies loaned.

Lincoln is very angry about this high level of interest and so he prints his own debt free money and informs the public that this is now legal tender for both public and private debts.

1862: By April $449,338,902 worth of Lincoln�s debt free money has been printed and distributed. He states of this,

�We gave the people of this republic the greatest blessing they ever had, their own paper money to pay their own debts.�

That same year The Times of London publishes a story containing the following statement,

“If that mischievous financial policy, which had its origin 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 debts and be without a debt. It will have all the money necessary to carry on its commerce.

It will become prosperous beyond precedent in the history of 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.”

1863: President Abraham Lincoln discovers the Tsar of Russia, Alexander II (1855 � 1881), was having problems with the Rothschilds as well as he was refusing their continual attempts to set up a central bank in Russia. The Tsar then gives President Lincoln some unexpected help.

The Tsar issued orders that if either England or France actively intervened in the American Civil War, and help the South, Russia would consider such action a declaration of war, and take the side of President Lincoln. To show that he wasn’t messing about, he sent part of his Pacific Fleet to port in San Francisco and another part to New York.

The Rothschild banking house in Naples, Italy, C. M. de Rothschild e figli, closes following the unification of Italy. The Rothschilds use one of their own in America, John D. Rockefeller, to form an oil business called Standard Oil which eventually takes over all of its competition.

1864: Rothschild, August Belmont, who by now is the Democratic Party’s National Chairman, supports General George McClellan as the Democratic nominee to run against President Abraham Lincoln in this year’s election. Much to the anger of Belmont, President Lincoln wins the election.

1865: In a statement to Congress, President Abraham Lincoln states,

“I have two great enemies, the Southern Army in front of me, and the financial institutions in the rear. Of the two, the one in my rear is my greatest foe.”

Later that year, on April 14, President Lincoln is assassinated, less than two months before the end of the American Civil War.

Following a brief training period in the Rothschilds London Bank, Jacob Schiff, a Rothschild, born in their house in Frankfurt, arrives in America at the age of 18, with instructions and the finance necessary to buy into a banking house there. The purpose of this was to carry out the following tasks.

1. Gain control of America’s money system through the establishment of a central bank.
2. Find desirable men, who for a price, would be willing to serve as stooges for the Illuminati and promote them into high places in the federal government, the Congress, Supreme Court, and all the federal agencies.
3. Create minority group strife throughout the nations, particularly targeting the whites and blacks.
4. Create a movement to destroy religion in the United States, with Christianity as the main target.

Nathaniel de Rothschild becomes Member of Parliament for Aylesbury in Buckinghamshire.

1868: Jacob (James) Mayer Rothschild dies, shortly after purchasing Ch�teau Lafite, one of the four great premier grand cru estates of France. He is the last of Mayer Amschel Rothschild�s sons to die.

1870: Nathaniel de Rothschild dies.

1871: An American General named, Albert Pike, who had been enticed into the Illuminati by Guissepe Mazzini, completes his military blueprint for three world wars and various revolutions throughout the world, culminating into moving this great conspiracy into its final stage.

The first world war is to be fought for the purpose of destroying the Tsar in Russia,as promised by Nathan Mayer Rothschild in 1815. The Tsar is to be replaced with communism which is to be used to attack religions, predominantly Christianity. The differences between the British and German empires are to be used to forment this war.

The second world war is to be used to forment the controversy between facism and political zionism with the slaughter of Jews in Germany a lynchpin in bringing hatred against the German people. This is designed to destroy fascism (which the Rothschilds created) and increase the power of political zionism. This war is also designed to increase the power of communism to the level that it equalled that of united Christendom.

The third world war is to be played out by stirring up hatred of the Muslim world for the purposes of playing the Islamic world and the political zionists off against one another. Whilst this is going on, the remaining nations would be forced to fight themselves into a state of mental, physical, spiritual and economic exhaustion.

On August 15th of this year, Albert Pike writes a letter (now catalogued in the British Museum) to Guiseppe Mazzini in which he states the following,

“We shall unleash the nihilists and the atheists and we shall provoke a great social cataclysm which in all its horror will show clearly to all nations the effect of absolute atheism; the origins of savagery and of most bloody turmoil.

Then everywhere, the people will be forced to defend themselves against the world minority of the world revolutionaries and will exterminate those destroyers of civilization and the multitudes disillusioned with Christianity whose spirits will be from that moment without direction and leadership and anxious for an ideal, but without knowledge where to send its adoration, will receive the true light through the universal manifestation of the pure doctrine of Lucifer brought finally out into public view.

A manifestation which will result from a general reactionary movement which will follow the destruction of Christianity and Atheism; both conquered and exterminated at the same time.”

Pike, who having been elected as Sovereign Grand Commander of the Scottish Rite of Freemasonry’s Southern Jurisdiction in 1859, was the most powerful Freemason in America. He would retain that post for 32 years until his death in 1891. He also published a book on the subject in 1872 entitled, “Morals and Dogma of the Ancient and Accepted Scottish Rite of Freemasonry,” in which he candidly states the following,

“LUCIFER, the Light-bearer! Strange and mysterious name to give to the Spirit of Darknesss! Lucifer, the Son of the Morning! Is it he who bears the Light, and with its splendors intolerable blinds feeble, sensual or selfish Souls? Doubt it not!”

1872: Prior to Guiseppe Mazzini’s death this year, he makes another revolutionary leader named Adrian Lemmy his successor. Lemmy will be subsequently succeeded by Lenin and Trotsky, then by Stalin. The revolutionary activities of all these men are financed by the Rothschilds.

1873: The loss making Rio Tinto copper mines in Spain, are purchased by a group of foreign financiers including the Rothschilds. These mines represented Europe�s largest source of copper.

1875: On January 1 of this year Jacob Schiff, now Solomon Loeb’s son-in-law after marrying his daughter, Teresa, takes control of the banking house, Kuhn, Loeb & Co. He goes on to finance John D. Rockefeller’s Standard Oil Company, Edward R. Harriman’s Railroad Empire, and Andrew Carnegie’s Steel Empire. This is all with Rothschild money.

He then identifies the other largest bankers in America at that time. They are, J.P. Morgan who controls Wall Street, and the Drexels and the Biddles of Philadelphia. All the other financiers, big and little, danced to the music of those three houses. Schiff then gets the European Rothschilds to set up European branches of these three large banks on the understanding that Schiff, and therefore Rothschild, is to be the boss of banking in New York and therefore America.

N M Rothschild & Sons undertake a share issue to raise capital for the first channel tunnel project to link France to England, with half of its capital coming from the Rothschild owned Compagnie du Chemin de Fer du Nord.

This year Lionel De Rothschild also loans Prime Minister Benjamin Disraeli the finance for the British government to purchase the shares in the Suez Canal, from Khedive Said of Egypt. This was done as the Rothschilds needed this access route to be held by a government they controlled, so they could use that government’s military to protect their huge business interests in the Middle East.

1876: Otto von Bismarck states,

“The division of the United States into two federations of equal force was decided long before the civil war by the high financial power of Europe. These bankers were afraid that the United States, if they remained in one block and as one nation, would attain economical and financial independence, which would upset their financial domination over the world.

The voice of the Rothschilds predominated. They foresaw the tremendous booty if they could substitute two feeble democracies, indebted to the financiers, to the vigorous Republic, confident and self-providing.

Therefore they started their emissaries in order to exploit the question of slavery and thus dig an abyss between the two parts of the Republic.”

1879: Lionel de Rothschild dies.

1880: Rothschild agents begin formenting a series of pogroms predominantly in Russia, but also in Poland, Bulgaria and Romania. These pogroms resulted in the slaughter of thousands of innocent Jews, causing approximately 2 million to flee, mainly to New York, but also to Chicago, Philadelphia, Boston and Los Angeles.

The reason these pogroms were initiated, was to create a large Jewish base in America, who when they arrived, would be educated to register as Democrat voters. Some twenty years later, this would result in in a massive Democratic power base in the United States and be used to elect Rothschild front men such as Woodrow Wilson, to the Presidency, to carry out the bidding of the Rothschilds.

1881: President James A. Garfield (The 20th President of the United States who lasted only 100 Days) states two weeks before he is assassinated,

�Whoever controls the volume of money in our country is absolute master of all industry and commerce�and when you realize that the entire system is very easily controlled, one way or another, by a few powerful men at the top, you will not have to be told how periods of inflation and depression originate.�

Edmond James de Rothschild has a son Maurice de Rothschild.

1883: After 6,000 feet of tunnel in the channel tunnel project being excavated, the British government halt the project citing the fact that it would be a threat to Britain�s security.

1885: Nathaniel Rothschild, son of Lionel De Rothschild, becomes the first Jewish peer and is takes the title of Lord Rothschild.

1886: The French Rothschild bank, de Rothschild Fr�res obtains substantial amounts of Russia’s oil fields and forms the Caspian and Black Sea Petroleum Company, which quickly becomes the world’s second largest oil producer.

1887: Opium trafficker in China, Edward Albert Sassoon, marries Aline Caroline de Rothschild, the grand-daughter of Jacob (James) Mayer Rothschild. Aline Caroline’s father, Gustave, together with his brother, Alphonse, took over the Rothschild’s french arm following their father Jacob’s death.

The Rothschilds finance the amalgamation of the Kimberley diamond mines in South Africa. They subsequently become the biggest shareholders of this company, De Beers, and mine precious stones in Africa and India.

1888: No�mie Halphen, future wife of Maurice de Rothschild born.

1891: The British Labour Leader makes the following statement on the subject of the Rothschilds,

“This blood-sucking crew has been the cause of untold mischief and misery in Europe during the present century, and has piled up its prodigious wealth chiefly through fomenting wars between States which ought never to have quarrelled.

Whenever there is trouble in Europe, wherever rumours of war circulate and men’s minds are distraught with fear of change and calamity you may be sure that a hook-nosed Rothschild is at his games somewhere near the region of the disturbance.”

Comments like this worry the Rothschilds and towards the end of the 1800′s they purchase Reuters news agency so they can have some control of the media.

1895: Edmond James de Rothschild the youngest son of Jacob (James) Mayer Rothschild visits Palestine and subsequently supplies the funds to found the first Jewish colonies there, this is to further their long term objective of creating a Rothschild owned country.

1897: The Rothschilds found the Zionist Congress to promote Zionism (a political movement with the sole aim of moving all Jews into a singularly Jewish nation state) and arrange its first meeting in Munich. However due to extreme opposition from local Jews, who are quite happy where they are, this meeting has to be moved to Basle, Switzerland and takes place on 29 August. The meeting is chaired by Ashkenazi Jew, Theodor Herzl, who would state in his diaries,

“It is essential that the sufferings of Jews become worse this will assist in realization of our plans I have an excellent idea I shall induce anti-Semites to liquidate Jewish wealth.The anti-Semites will assist us thereby in that they will strengthen the persecution and oppression of Jews. The anti-Semites shall be our best friends.”

Herzl is subsequently elected President of the Zionist Organisation which adopts the, “Rothschild Red Hexagram or Sign,” as the Zionist flag which 51 years later will end up as the flag of Israel.

Edward Henry Harriman becomes a director of the Union Pacific Railroad and goes on to take control of the Southern Pacific Railroad. This is all financed by the Rothschilds.

1898: Ferdinand de Rothschild dies.

1901: The Jews from the colonies set up in Palestine by Edmond James de Rothschild, send a delegation to him which tell him,

“If you wish to save the Yishuv (The Jewish settlement) first take your hands from it, and for once permit the colonists to have the possibility of correcting for themselves what needs correcting.”

Edmond James de Rothschild is very angry about this and states,

“I created the Yishuv, I alone. Therefore no men, neither colonists nor organisations have the right to interfere in my plans.”

The Rothschild banking house in Frankfurt, Germany, M. A. von Rothschild und Sohne, closes as there is no male Rothschild heir to take it on.

1902: Philippe de Rothschild born.

1905: A group of Rothschild backed Zionist Jews led by Georgi Apollonovich Gapon attempt to overthrow the Tsar in Russia in a Communist Coup. They fail and are forced to flee Russia only to be given refuge in Germany.

The Jewish Encyclopaedia (Vol. 2, p.497) states,

“It is a somewhat curious sequel to the attempt to set up a Catholic competitor to the Rothschilds that at the present time the latter are the guardians of the papal treasure.”

1906: The Rothschilds claim that due to growing instability in the region and increasing competition from Rockefeller (the Rockefeller family are Rothschild descendants through a female bloodline) owned Standard Oil, this is why they sell their Caspian and Black Sea Petroleum Company to Royal Dutch and Shell. This is another example of the Rothschilds trying to hide their true wealth.

1907: Rothschild, Jacob Schiff, the head of Kuhn, Loeb and Co., in a speech to the New York Chamber of Commerce, warns that,

“Unless we have a Central Bank with adequate control of credit resources, this country is going to undergo the most severe and far reaching money panic in its history.”

Suddenly America finds itself in the middle of another typical run of the mill Rothschild engineered financial crisis, which ruins as usual ruins the lives of millions of innocent people throughout America and makes billions for the Rothschilds.

1909: Jacob Schiff founds the National Advancement for the Association of the Coloured People (NAACP). This was done to incite black people into roiting, looting and other forms of disorder, in order to cause a rift between the black and white communities. Jewish historian, Howard Sachar, states the following in his book, “A History of the Jews in America,”

“In 1914, Professor Emeritus Joel Spingarn of Columbia University became chairman of the NAACP and recruited for its board such Jewish leaders as Jacob Schiff, Jacob Billikopf, and Rabbi Stephen Wise.”

Other Ashkenazi Jew co-founders included Julius Rosenthal, Lillian Wald and Rabbi Emil G. Hirsch. It was not until 1920 that the NAACP appointed its first black president, James Weldon Johnson.

Maurice de Rothschild marries Ashkenazi Jew, No�mie Halphen.

1911: Werner Sombart, in his book, “The Jews and Modern Capitalism,” stated that from 1820 on, it was the,

“Age of the Rothschild,” and concluded that there was, “Only one power in Europe, and that is Rothschild.”

1912: In the December issue of, “Truth,” magazine, George R. Conroy states of banker Jacob Schiff,

“Mr Schiff is head of the great private banking house of Kuhn, Loeb, and co, which represents the Rothschilds interests on this side of the Atlantic.

He has been described as financial strategist and has been for years the financial minister of the great impersonal power known as Standard Oil.

He was hand in glove with the Harrimans, the Goulds, and the Rockefellers in all their railroad enterprises and has become the dominant power in the railroad and financial power of America.”

1913: On March 4, Woodrow Wilson is elected the 28th President of the United States. Shortly after he is inaugurated, he is visited in the White House by Ashkenazi Jew, Samuel Untermyer, of law firm, Guggenheim, Untermyer, and Marshall, who tries to blackmail him for the sum of $40,000 in relation to an affair Wilson had whilst he was a professor at Princeton University, with a fellow professor’s wife.

President Wilson does not have the money, so Untermyer volunteers to pay the $40,000 out of his own pocket to the woman Wilson had had the affair with, on the condition that Wilson promise to appoint to the first vacancy on the United States Supreme Court a nominee to be recommended to President Wilson by Untermyer. Wilson agrees to this.

Jacob Schiff sets up the Anti Defamation League (ADL) in the United States. This organisation is formed to slander anyone who questions or challenges the Rothschild global conspiracy as, “anti-semitic.”

Strangely enough, the same year that they do this they also set up their last and current central bank in America, the Federal Reserve. Congressman Charles Lindbergh stated following the passing of the Federal Reserve Act on December 23,

“The Act establishes the most gigantic trust on earth. When the President signs this Bill, the invisible government of the monetary power will be legalized…….The greatest crime of the ages is perpetrated by this banking and currency bill.”

It is important to note that the Federal Reserve is a private company, it is neither Federal nor does it have any Reserve. It is conservatively estimated that profits exceed $150 billion per year and the Federal Reserve has never once in its history published accounts.

1914: The start of World War I. In this war, the German Rothschilds loan money to the Germans, the British Rothschilds loan money to the British, and the French Rothschilds loan money to the French.

Futhermore, the Rothschilds have control of the three European news agencies, Wolff (est. 1849) in Germany, Reuters (est. 1851) in England, and Havas (est. 1835) in France.

The Rothschilds use Wolff to manipulate the German people into a fervour for war. From around this time, the Rothschilds are rarely reported in the media, because they own the media.

1916: On June 4, Ashkenazi Jew, Louis Dembitz Brandeis is appointed to the Supreme Court of the United States by President Wilson as per his agreed blackmail payment to Samuel Untermyer some three years earlier. Justice Brandeis is also the elected leader of the Executive Committee for Zionist Affairs, a position he has held since 1914.

The middle of World War II. Germany were winning the war as they were being financed by the Rothschilds to a greater extent than France, Italy and England, because Rothschilds, did not want to support the Tsar in Russia, and of course Russia was on the same side as France, Italy and England.

Then a significant event occurred. Germany, although they were winning the war and not one foreign soldier had set foot on their soil, offered armistice to Britain with no requirement of reparations. The Rothschilds were anxious to make sure this didn’t happen as they were expecting to make far more money off this war, so they played another card they had up their sleeve.

Whilst the British were considering Germany’s offer, Rothschild agent Louis Brandeis sends a Zionist delegation from America to Britain to promise to bring America into the war on the side of the British, provided the British agree to give the land of Palestine to the Rothschilds.

The Rothschilds wanted Palestine for the following reason. They had great business interests in the far east and desired their own state in that area along with their own military which they could use as an aggressor to any state that threatened those interests.

The British subsequently agree to the deal for Palestine and the Zionists in London contact their counterparts in America and inform them of this fact. Suddenly all the major newspapers in America that up to that point had been pro-German turned on Germany running propaganda pieces such as: German soldiers were killing Red Cross Nurses; German soldiers were cutting off babies hands, etc, in order to manipulate the American public against the Germans.

This same year, President Woodrow Wilson, ran a re-election campaign under the slogan, “Re-Elect The Man Who Will Keep Your Sons Out Of The War.”

On December 12, Germany and her allies offer peace terms to end the war.

1917: As a result of Germany’s offer of peace the Rothschild war machine goes into overdrive in America, spreading propaganda which leads to President Wilson under the instructions of American Zionist leader and Supreme Court Justice, Louis Dembitz Brandeis, reneging on his promise to the electorate and taking America into the first world war on April 6.

As per the Rothschild Zionist promise to the British, to take America into the war, they decide they want something in writing from the British to prove that they will uphold their side of the bargain. The British Foreign Secretary, Arthur James Balfour therefore drafts a letter which is commonly known as the, “Balfour Declaration,” which is reprinted below.

Foreign Office

November 2nd, 1917

Dear Lord Rothschild,

I have much pleasure in conveying to you, on behalf of His Majesty’s Government, the following declaration of sympathy with Jewish Zionist aspirations which has been submitted to, and approved by, the Cabinet.

His Majesty’s Government view with favour the establishment in Palestine of a national home for the Jewish people, and will use their best endeavours to facilitate the achievement of this object, it being clearly understood that nothing shall be done which may prejudice the civil and religious rights of existing non-Jewish communities in Palestine, or the rights and political status enjoyed by Jews in any other country.

I should be grateful if you would bring this declaration to the knowledge of the Zionist Federation.

Yours sincerely,

Arthur James Balfour

The Rothschilds order the execution by the Bolsheviks they control, of Tsar Nicholas II and his entire family in Russia, even though the Tsar had already abdicated on March 2. This is both to get control of the country and an act of revenge for Tsar Alexander I blocking their world government plan in 1815 at the Congress Of Vienna, and Tsar Alexander II siding with President Abraham Lincoln in 1864.

It is extremely important for them to slaughter the entire family including women and children in order to make good on the promise to do so made by Nathan Mayer Rothschild in 1815. It is designed to show the world what happens if you ever attempt to cross the Rothschilds.

U.S. Congressman Oscar Callaway informs Congress that J. P. Morgan is a Rothschild front and has taken control of the American media industry. He states,

“In March, 1915, the J.P. Morgan interests, the steel, shipbuilding, and powder interest, and their subsidiary organizations, got together 12 men high up in the newspaper world and employed them to select the most influential newspapers in the United States and sufficient number of them to control generally the policy of the daily press…

…They found it was only necessary to purchase the control of 25 of the greatest papers…An agreement was reached. The policy of the papers was bought, to be paid for by the month, an editor was furnished for each paper to properly supervise and edit information regarding the questions of preparedness, militarism, financial policies, and other things of national and international nature considered vital to the interests of the purchasers.”

1919: In January, Ashkenazi Jews, Karl Liebknecht and Rosa Luxemburg, are killed as they attempt to lead another Rothschild funded Communist coup, this time in Berlin, Germany.

The Versailles peace conference is held to decide reparations that the Germans need to pay to the victors following the end of the first world war. A delegation of 117 Zionists headed up by Ashkenazi Jew, Bernard Baruch, bring up the subject of the promise of Palestine for them. At this point the Germans realised why America had turned on them and under whose influence, the Rothschilds.

The Germans, naturally, felt they had been betrayed by the Zionists. This is because, at the time the Rothschilds made their deal with Britain for Palestine, in exchange for bringing America into the war, Germany was the most friendly country in the world towards the Jews, indeed the German Emancipation Edict of 1822 guaranteed Jews in Germany all civil rights enjoyed by Germans.

Also, Germany was the only country in Europe which did not place restrictions on Jews, even giving them refuge when they had to flee from Russia after their first attempted Communist coup failed there in 1905.

Nevertheless, the Rothschilds had held up their side of the bargain to spill the blood of millions of innocents and as a result, Palestine is confirmed as a Jewish homeland, and whilst its handover to the Rothschilds takes place it is to remain under the control of Britain as the Rothschilds control Britain. At that time less than one percent of the population of Palestine was Jewish. Interestingly, the host of the Versailles peace conference is its boss, Baron Edmond de Rothschild.

The Versailles peace conference is also used as an attempt by the Rothschilds to set up a world government under the pretext of ending all wars (which they create). This was called the, “League of Nations.” Fortunately not enough countries accepted it and so it soon died.

On March 29th The Times of London reports on the Bolsheviks in Russia,

“One of the curious features of the Bolshevist movement is the high percentage of non Russian elements among its leaders. Of the twenty or thirty commissaries, or leaders, who provide the central machinery of the Bolshevist movement, not less than 75% were Jews.”

It is reported that the Rothschilds were angry with the Russians because they were not prepared to allow them to form a central bank within their nation. They therefore gathered groups of Jewish spies and sent them into Russia to drum up a revolution for the benefit of the common man, which was actually a takeover of Russia by a Rothschild controlled satanic elite.

These Jewish spies were, in age old deceptive Ashkenazi tradition, given Russian names, for example Trotsky was a member of the first group and his original name was Bronstein. These groups were sent to areas throughout Russia to incite riots and rebellion.

The Jewish Post International Edition, week ending January 24th 1991, confirms Vladimir Lenin was Jewish. Lenin is also on record as having stated,

The establishment of a central bank is 90% of communizing a nation.

These Jewish, Rothschild funded Bolsheviks would go on in the course of history to slaughter 60 million Christians and Non-Jews in Soviet controlled territory. Indeed the author Aleksandr Solzhenitsyn in his work, ‘Gulag Archipelago, Vol 2,’ affirms that Zionist Jews created and administered the organized Soviet concentration camp system in which these tens of millions of Christians and Non-Jews died.

On page 79 of this book he even names the administrators of this the greatest killing machine in the history of the world. They are Aron Solts, Yakov Rappoport, Lazar Kogan, Matvei Berman, Genrikh Yagoda, and Naftaly Frenkel. All six are Zionist Jews. In 1970 Solzhenitsyn would be awarded the Nobel Peace Prize for literature.

N. M. Rothschild & Sons are given a permanent role to fix the world’s daily gold price. This takes place in the City of London offices, daily at 1100 hours, in the same room until 2004.

1920: Winston Churchill (whose mother, Jenny (Jacobson) Jerome, was Jewish meaning he is Jewish under Ashkenazi law as he was born of a Jewish mother) writes in an article in the Illustrated Sunday Herald, dated February 8th,

“From the days of Illuminati leader Weishaupt, to those of Karl Marx, to those of Trotsky, this worldwide conspiracy has been steadily growing.

And now at last this band of extraordinary personalities from the underworld of the great cities of Europe and America, have gripped the Russian people by the hair of their heads and become the undisputed masters of that enormous empire.”

1921: Under the orders of Jacob Schiff the Council on Foreign Relations (CFR) is founded by Ashkenazi Jews, Bernard Baruch and Colonel Edward Mandell House. Schiff gave his orders prior to his death in 1920, as he knew an organisation in America needed to be set up to select politicians to carry on the Rothschild conspiracy,and the formation of the CFR was actually agreed in a meeting on May 30, 1919 at the Hotel Majestic in Paris, France.

The CFR membership at the start was approximately 1000 people in the United States. This membership included the heads of virtually every industrial empire in America, all the American based international bankers, and the heads of all their tax free foundations. In essence all those people who would provide the capital required for anyone who wished to run for Congress, the Senate or the Presidency.

The first job of the CFR was to gain control of the press. This task was given to John D. Rockefeller who set up a number of national news magazines such as Life, and Time. He financed Samuel Newhouse to buy up and establish a chain of newspapers all across the country, and Eugene Meyer also who would go on to buy up many publications such as the Washington Post, Newsweek, ant The Weekly Magazine.

The CFR also needed to gate control of radio, television and the motion picture industry. This task was split amongst the international bankers from, Kuhn Loeb, Goldman Sachs, the Warburgs, and the Lehmanns.

1925: This year’s Jewish Encyclopaedia, states of the existence of Ashkenazi Jews (who represent approximately 90% of so-called world Jewry), with the startling admission that the so called enemy of the Jews, Esau (also known as Edom, see Genesis 36:1), now actually represents the Jewish race, when on page 42 of Volume V it is stated,

“Edom is in modern Jewry.”

So what they’re basically saying is that these Ashkenazi Jews, who represent 90% of the so-called Jewish population, are actually gentiles or goyim themselves.

1926: N. M. Rothschild & Sons refinance the Underground Electric Railways Company of London Ltd which has a controlling interest in the entire London Underground transport system.

Maurice de Rothschild has a son, Edmond de Rothschild.

1929: The Rothschilds crash the United States economy by contracting the money supply.

1930: The first Rothschild world bank, the, “Bank for International Settlements (BIS),” is established in Basle, Switzerland. The same place as where 33 years earlier the first ever World Zionist Congress was held.

1933: On January 30, Adolf Hitler becomes Chancellor of Germany. He drives Jews, many of which were Communist out of Governmental positions within Germany. As a result of this, in July, the Jews hold a World Conference in Amsterdam during which they demand that Hitler re-instate every Jew back to his former position.

Hitler refuses and as a result of this, Samuel Untermyer, the Ashkenazi Jew who blackmailed President Wilson,and is now the head of the American delegation and the president of the whole conference, returns to the United States, and makes a speech on radio which was transcribed in the From the New York Times, Monday, August 7, 1933. In the speech he made the following statements,

“…the Jews are the aristocrats of the world…Our campaign is…the economic boycott against all German goods, shipping and services…What we are proposing…is to prosecute a purely defensive economic boycott that will undermine the Hitler regime and bring the German people to their senses by destroying their export trade on which their very existence depends…

…Each of you, Jew and Gentile alike…must refuse to deal with any merchant or shopkeeper who sells any German-made goods or who patronizes German ships or shipping.”

As two thirds of Germany’s food supply had to be imported, and could only be imported with the proceeds of what they exported, if Germany could not export, two thirds of Germany’s population would starve, as there would be not enough food for more than one third of the population.

As a result of this boycott, Jews throughout America, would protest outside and damage any stores in which they found any products with, “Made in Germany,” printed on them, causing stores to have to dump these products or risk bankruptcy.

Once the effects of this boycott began to be felt in Germany, the Germans, who had demonstrated no violence towards the Jews up to this point, simply began boycotting Jewish stores in the same way the Jews had done to stores selling German products in America.

Rothschild financed IBM, supply machines to the Nazis which produce punch cards to help organize and manage the initial identification and social expulsion of Jews, the confiscation of their property and their extermination.

On November 16, President Roosevelt recognizes the Zionist regime of Stalin in Russia without consultation with Congress even as 8,000 Ukrainians march in protest in New York.

Also this year, President Roosevelt, born of a Jewish mother, therefore satisfying Ashkenazi rules of being Jewish, orders the all-seeing eye to be placed upon all new dollar bills along with the motto, “Novus Ordo Seclorum.” This is latin for, “A New Order of the Ages.”

1934: Swiss banking secrecy laws are reformed and it becomes an offence resulting in imprisonment for any bank employee to violate bank secrecy. This is all in preparation for the Rothschild engineered Second World War in which as usual they will fund both sides.

Edmond de Rothschild dies.

1936: With regard to the increase in anti-semitism in Germany, Samuel Landman (at the time, secretary to the World Zionist Organisation), in his 1936 book, Great Britain, The Jews, and Palestine states the following of the United States entry into World War 1,

“The fact that it was Jewish help that brought USA into the War on the side of the Allies has rankled ever since in German especially Nazi minds, and has contributed in no small measure to the prominence which anti-Semitism occupies in the Nazi programme.”

1938: On 7th November, a Jew, Herschel Grynszpan, assassinated Ernst vom Rath, a minor official at the German Embassy in Paris. As a result of this German hostility towards Jews in Germany started to turn violent.

The Rothschilds Austrian banking house in Vienna, S. M. von Rothschild und Sohne, closes following the Nazi occupation of Austria.

1939: I.G. Farben the leading producer of chemicals in the world and largest German producer of steel dramatically increases its production. This increased production is almost exclusively used to arm Germany for the Second World War. This company was controlled by the Rothschilds and would go on to use Jews and other disaffected peoples as slave labour in the concentration camps. I.G. Farben also created the lethal Zyklon B gas that was used to exterminate the Jews.

On 1 September, the Second world war starts when Germany invades Poland. This was because the German leadership were a Christian leadership, who understood that Soviet Russia was led by Rothschild funded Communists, and they feared that as the Soviet Union grew in strength, these Jewish Communists would invade and wipe all the Christians off the map.

1940: Hansjurgen Koehler in his book, “Inside The Gestapo,” states the following, of Maria Anna Schicklgruber, Adolf Hitler’s grandmother,

“A little servant girl came to Vienna and became a domestic servant at the Rothschild mansion and Hitler’s unknown grandfather must be probably looked for in this magnificent house.”

This is backed up by Walter Langer in his book, “The Mind Of Hitler,” in which he states,

“Adolf’s father, Alois Hitler, was the illegitimate son of Maria Anna Schicklgruber’.Maria Anna Schicklgruber was living in Vienna at the time she conceived. At that time she was employed as a servant in the home of Baron Rothschild. As soon as the family discovered her pregnancy she was sent back home.where Alois was born.”

On the surface, it would appear Hitler was unlikely to be a Rothschild, but then again, when you discover the benefits that the Rothschilds got out of this war, both financially and politically, a Rothschild connection does not appear as outlandish as it may initially seem.

1941: President Roosevelt takes America into the second world war by refusing to sell Japan any more steel scrap or oil. Japan was in the midst of a war against China and without that scrap steel and oil, Japan would be unable to continue that war. Japan was totally dependent upon the United States for both steel scrap and oil. Roosevelt knew this action would provoke the Japanese to attack America, which they subsequently did at Pearl Harbor.

1942: Prescott Bush, father of future American Presidents’ George Herbert Walker and George W, has his company seized under the, ‘Trading With The Enemy,’ Act. He was funding Hitler from America, whilst American soldiers were being killed by German soldiers.

Jews are also being slaughtered by these same soldiers. Interestingly the ADL never criticizes any of the Bushes for this.

1943: February 18th, Zionist, Izaak Greenbaum, head of the Jewish Agency Rescue Committee, in a speech to the Zionist Executive Council states,

If I am asked, could you give from the UJA (United Jewish Appeal) monies to rescue Jews, I say, no and I say again no!

He would go onto state,

One cow in Palestine is worth more than all the Jews in Poland!

This is not a surprise, the whole idea of Zionist support for the slaughter of innocent Jews was to scare the survivors into believing that their only place of safety was Israel. How else do you think the Zionists could ensure Jews leave the beautiful European cities in which they live, in order to settle in a desert!

1944: On 6 November Lord Moyne, British Minister Resident in the Middle East was assassinated in Cairo by two members of the Jewish terrorist group, the Stern Gang, led by future Prime Minister of Israel, Yitzhak Shamir. He is also responsible for an assassination attempt against Harold MacMichael, the High Commissioner of the British Mandate of Palestine, this same year.

Interestingly he also masterminds another successful assassination this year against the United Nations representative in the Middle East, Count Folke Bernadotte who, although he had secured the release of 21,000 prisoners from German camps during World War II, was seen by Yitzak Shamir and his terrorist collaborators as an anti-Zionist.

In Bretton Woods, New Hampshire, two further Rothschild world banks are created. The International Monetary Fund (IMF), and the World Bank.

1945: The end of the Second World War. It is reported that I.G. Farben plants were specifically not targeted in the bombing raids on Germany. Interestingly at the end of the war, they were found to have only sustained 15% damage.

The tribunals held at the end of the Second World War, to investigate Nazi War Crimes, censored any materials recording Western assistance to Hitler.

The Rothschilds take a giant step towards their goal of world domination when the second, “League of Nations,” called the, “United Nations,” was approved this year.

1946: On July 22 the future Prime Minister of Israel, Ashkenazi Jew, David Ben-Gurion, orders another future Prime Minister of Israel, Ashkenazi Jew, Menachem Begin, to carry out a terrorist attack on the King David Hotel in Palestine, to try and drive out the British. As a result of this 91 people were killed, most of them civilians: 28 British, 41 Arabs, 17 Jews, and 5 others. Around 45 people are injured.

Menachem Begin went on to proudly proclaimed himself as, “the father of modern terrorism.” Just to put the gravity of the attack on the King David Hotel into perspective, it was at the time the biggest death toll as a result of single terrorist action ever and was only surpassed over forty years later by the Bombing of Pan Am flight 103 over Lockerbie.

1947: The British who prior to World War 2 declared that there would be no more immigration of Jews to Palestine in order to protect the Palestinians from their acts of terror against both them and British soldiers, transfer control of Palestine to the United Nations. The United Nations resolve to have Palestine partitioned into two states, one zionist and one arab, with Jerusalem to remain as an international zone to be enjoyed by all religious faiths.

This transfer was scheduled to take place on May 15, 1948. The United Nations had no right to give Arab property to anyone, as indeed even thought the Jews owned 6% of Palestine at that time, resolution 181 granted the Jews 57% of the land leaving the Arabs who at that time had 94% with only 43%.

Information collected by the ADL in its spy operations on US citizens is used by the House Select Committee on Unamerican Activities. Subcommittee Chair Clare Hoffman dismisses the ADL’s reports on suspected communists as “hearsay.”

1948: In the Spring of this year, the Rothschilds bribe President Harry S. Truman (33rd President of the United States 1945 – 1953) to recognise Israel (Rothschild owned Zionist not Jewish territory) as a sovereign state with $2,000,000 which they give to him on his campaign train.

They then declare Israel to be a sovereign Jewish state in Palestine and within half an hour President Truman declared the United States to be the first foreign nation to recognise it.

The Flag of Israel is unveiled. Despite tremendous opposition the emblem on the flag is a blue coloured version of the Rothschild, “Red Hexagram or Sign.”

This angers many Jews who realise this Hexagram was used in the ancient mystery religions as the symbol of, “Moloch,” (described as a demon of unwilling sacrifice and is also interestingly the name of the stone owl the elite worship at Bohemian Grove), and, “Astaroth,” (described as the Lord Treasurer of Hell).

The Hexagram was also used to represent Saturn, which has been identified as the esoteric name for, “Satan.” This indicates that anyone killed in the name of Israel is actually a sacrifice to Satan. These dissenting Jews believe the, “Menorah,” the oldest Jewish symbol should be used and pointed out that the Hexagram is not even a Jewish symbol, but of course as the Rothschild Zionists use it that is what ends up on the Rothschild, I mean Zionist, I mean Israeli flag.

In the early hours of April 19, 132 Jewish terrorists from the Irgun gang, led by future Israeli Prime Minister Menachem Begin, and the Stern gang, led by future Israeli Prime Minister Yitzhak Shamir, brutally massacre 200 men, women and children as they are sleeping peacefully in the Arab village of Deir Yassin.

Following the United Nations transfer of Palestine to an independent Jewish state and an independent Arab state on May 15, the Israelis launched a military assault on the Arabs with blaring loudspeakers on their trucks informing the Arabs that if they did not flee immediately, they would be slaughtered.

800,000 Arabs with the recent memory of the Deir Yassin massacre at the forefront of their minds, fled in panic. They asked for help from nighbouring Arab states, but those states did not get involved as they were no match for the Israelis whose up to date military hardware had been supplied by the Jewish Stalinist regime in Russia. Following this assault, the Jews now controlled 78% of the former Palestine as oppose to the 57% that had been given to them illegally by the United Nations.

The Palestinians, many of them Christians, were never paid compensation for their homes, property and businesses stolen from them during this illegal Jewish assault, and these people ended up in slum refugee cities of tents. Futhermore at least half of the Palestinians in their hurry to flee, left their birth certificates behind. The State of Israel then passed a law that only those who could prove citizenship were allowed to return to Israel, thus meaning these 400,000 Palestinians could not return and lost all their property they had left there.

Ashkenazi Jew, David Ben-Gurion, one of the father founders of Israel and its first Prime Minister, candidly describes Zionist aims in his diary (21 May 1948) as follows,

The Achilles heel of the Arab coalition is the Lebanon. Muslim supremacy in this country is artificial and can easily be overthrown. A Christian State ought to be set up there, with its southern frontier on the river Litani.

We would sign a treaty of alliance with this State. Thus when we have broken the strength of the Arab Legion and bombed Amman, we could wipe out Trans-Jordan, after that Syria would fall. And if Egypt still dared to make war on us, we would bomb Port Said, Alexandria and Cairo.

We should thus end the war and would have but paid to Egypt, Assyria and Chaldea on behalf of our ancestors.

1949: On October 1, Mao Tse Tsung declares the founding of the People’s Republic Of China in Tiananmen Square, Beijing. He is funded by Rothschild created Communism in Russia and also the following Rothschild agents: Solomon Adler, a former United States Treasury official who was a Soviet Spy; Israel Epstein, the son of a Jewish Bolshevik imprisoned by the Tsar in Russia for trying to forment a revolution there; and Frank Coe, a leading official of the Rothschild owned IMF.

1950: Israel passes their law of return, guaranteeing every Jew worldwide the right to dwell in the state of Israel, however the Palestinians even though they had lived there for 1300 years, were denied that right.

John Davitt, former chief of the Justice Department’s internal security section notes that the Israeli intelligence service is the second most active in the United States after the Soviets and of course both Israel and the Soviet Union are run by an Ashkenazi Jewish leadership.

1951: On 1 April the Israeli Secret Intelligence Agency the Mossad, which will go on to terrorize the world, is formed. The motto of the Mossad is probably the most disgusting secret service motto in the world, it is,
“By Way Of Deception,
Thou Shalt Do War.”

1953: N. M. Rothschild & Sons found the British Newfoundland Corporation Limited to develop 60,000 square miles of land in Newfoundland, Canada, which comprised a power station to harness the power of the Hamilton (later renamed Churchill) Falls. At the time this was the largest construction project ever to be undertaken by a private company.

1954: “The Lavon Affair.” Israeli agents recruit Egyptian citizens of Jewish descent to bomb Western targets in Egypt, and plant evidence to frame Arabs, in an apparent attempt to upset American/Egyptian relations. Israeli defense minister, Ashkenazi Jew, Pinhas Lavon is eventually removed from office, though many think real responsibility lay with David Ben-Gurion.

A hidden microphone planted by the Israelis is discovered in the Office of the US Ambassador in Tel Aviv.

1955: Edmond de Rothschild founds Compagnie Financiere, Paris.

1956: Telephone taps are found connected to two telephones in the residence of the US military attache in Tel Aviv.

1957: James de Rothschild dies and it is reported (by the Rothschild owned media) that he bequeaths a large sum of money to the state of Israel to pay for the construction of their parliament building, the Knesset. He states that the Knesset should be,

“a symbol, in the eyes of all men, of the permanence of the State of Israel.”

On page 219 of his book, “Tales of the British Aristocracy,” L.G. Pine, the Editor of Burke’s Peerage, states that the Jews,

“have made themselves so closely connected with the British peerage that the two classes are unlikely to suffer loss which is not mutual. So closely linked are the Jews and the lords that a blow against the Jews in this country would not be possible without injuring the aristocracy also.”

Maurice de Rothschild dies in Paris.

1962: de Rothschild Freres establishes Imetal as an umbrella company for all their mineral mining interests.

Frederic Morton publishes his book, The Rothschilds, in which he states,

“Though they control scores of industrial, commercial, mining and tourist corporations, not one bears the name Rothschild. Being private partnerships, the family houses never need to, and never do, publish a single public balance sheet, or any other report of their financial condition.”

This attitude reveals the true aim of the Rothschilds, to eliminate all competition and create their own worldwide monopoly.

1963: On June 4th President John F. Kennedy (the 35th President of the United States 1961 – 1963) signs Executive Order 11110 which returned to the U.S. government the power to issue currency, without going through the Rosthchilds owned Federal Reserve.

Less than 6 months later on November 22nd , president Kennedy is assassinated by the Rothschilds for the same reason as they assassinated President Abraham Lincoln in 1865, he wanted to print American money for the American people, as oppose to for the benefit of a money grabbing war mongering foreign elite.

This Executive Order 11110, is rescinded by President Lyndon Baines Johnson (the 36th President of the United States 1963 to 1969) on Air Force One from Dallas to Washington, the same day as President Kennedy was assassinated.

Another, and probably the primary, reason for Kennedy’s assassination is however, the fact that he made it quite clear to Israeli Prime Minister, David Ben-Gurion, that under no circumstances would he agree to Israel becoming a nuclear state. The Israeli newspaper Ha’aretz on February 5, 1999, in a review of, Avner Cohen’s book, “Israel and the Bomb,” states the following,

“The murder of American President John F. Kennedy brought to an abrupt end the massive pressure being applied by the U.S. administration on the government of Israel to discontinue the nuclear program…The book implied that, had Kennedy remained alive, it is doubtful whether Israel would today have a nuclear option.”

Edmond de Rothschild establishes La Compagnie Financiere Edmond de Rothschild (LCF), in Switzerland as a venture capital house. This later develops into an investment bank and asset management company with many affiliates. He also marries his wife Nadine and they have a son, Benjamin de Rothschild.

1965: Israel illegally obtains enriched uranium from NUMEC (Nuclear Materials and Equipment Corporation).

1967: The treatment of the Palestinians by the Zionist Jews, finally ignites enough anger in the Arab world for Egypt, Jordan and Syria to mobilise on Israel’s borders. All of these three countries are suddenly attacked by Israel and as a result the Sinai which included Gaza was stolen from Egypt, and the West Bank and the Jordan River stolen from Jordan.

As a result of this, on June 8, the Israelis launch an attack on the USS Liberty with Israeli aircraft and motor torpedo boats, in an effort to blame it on Egypt, to bring America into the war on their side, and of course follow to the letter, their Mossad motto,
“By Way Of Deception,
Thou Shalt Do War.”

As a result of their attack, 34 American servicemen were killed and 174 wounded. Israel lies as usual, claiming it mistook this warship that was flying a large United States flag, for an ancient out-of-service Egyptian horse carrier El Quseir, that was 180 feet shorter. They also claim the ship was in the war zone, when it was actually in international waters, far from any fighting. The Israeli’s attack on this warship lasts for 75 minutes during which time they shoot up one of the United States flags, resulting in the sailors desperately raising another one.

In the aftermath of this attack, the American sailors who survived are warned by the United States military not to discuss the matter with anyone due to, “national security.” This story gets no prominence in the Rothschild controlled mainstream media and as usual Israel is in no way even rebuked for their crimes by their subservient country of America.

The following day, June 9th, Israel illegally occupies the Golan Heights which it seizes from Syria. This area goes on to provide Israel with one third of its fresh water.

Israeli General Matityahu Peled, is quoted in Ha’aretz (19 March 1972) with the following statement,

“The thesis that the danger of genocide was hanging over us in June 1967 and that Israel was fighting for its physical existence is only bluff, which was born and developed after the war.” Another sickening and deceptive statement but again at least he’s consistent with the Mossad motto, “By Way Of Deception, Thou Shalt Do War.”

de Rothschild Freres is renamed Banque Rothschild.

1968: Nomie Halphen, wife of Maurice de Rothschild dies.

1970: While working for Senator Henry Scoop Jackson, Ashkenazi Jew, Richard Perle is caught by the FBI giving classified information to Israel. Nothing is done.

British Prime Minister Edward Heath makes Lord Victor Rothschild the head of his policy unit. Whilst he is in that role Britain enters the European Community.

1973: In his book, None Dare Call It Conspiracy, Gary Allen states,

“One major reason for the historical blackout on the role of the international bankers in political history is the Rothschilds were Jewish

The Jewish members of the conspiracy have used an organisation called The Anti-Defamation League (ADL) as an instrument to try and convince everyone that any mention of the Rothschilds and their allies is an attack on all Jews.

In this way they have stifled almost all honest scholarship on international bankers and made the subject taboo within universities.

Any individual or book exploring this subject is immediately attacked by hundreds of ADL communities all over the country. The ADL has never let the truth or logic interfere with its highly professional smear jobs

.Actually, nobody has a right to be more angry at the Rothschild clique than their fellow Jews

.The Rothschild empire helped finance Adolf Hitler.”

George J. Laurer an employee of the Rothschilds controlled IBM, invents the UPC (Universal Product Code) barcode which will eventually be placed upon every item traded worldwide and bear the number, 666. The Book of Revelation, Chapter 13, Verse 17 through 18, states the following in relation to this number,

“And that no man might buy or sell, save he that had the mark, or the name of the beast, or the number of his name.

Here is wisdom. Let him that hath understanding count the number of the beast: for it is the number of a man; and his number is Six hundred threescore and six.”

The whole Satanic aims of the Rothschilds are now in full view of the world, everything bought or sold carries the mark of the beast, 666.

N. M. Rothschild & Sons British Newfoundland Corporation, Churchill Falls project in Newfoundland, Canada, is completed.

N. M. Rothschild & Sons also create a new asset management part of the company which traded worldwide. This eventually became, Rothschild Private Management Limited.

Edmond de Rothschild, a great-grandson of Jacob (James) Mayer Rothschild, bought the cru bourgeois estate of Chateau Clarke in Bordeaux.

1976: Ashkenazi Jew, Harold Rosenthal, aide to Ashkenazi Jew, Senator Jacob Javits, states,

“Most Jews do not like to admit it, but our god is Lucifer.”

1978: Ashkenazi Jew, Stephen Bryen, then a Senate Foreign Relations Committee staffer, is overheard in a Washington D.C. hotel offering confidential documents to top Israeli military officials.

Bryen obtains a lawyer, Nathan Lewin, and the case heads for the grand jury, but is mysteriously dropped. Bryen later goes to work for Richard Perle.

1979: The Egyptian-Israeli peace treaty in 1979 was underwritten by United States aid which pledged $3 billion annually to Israel from the United States taxpayer (not even a drop in the ocean when you consider the amount they make off the Federal Reserve).

Shin Bet (the Israeli internal security agency) tries to penetrate the US Consulate General in Jerusalem through a Honey Trap, using a clerical employee who was having an affair with a Jerusalem girl.

Baron and Baroness Phillipi de Rothschild in a joint venture with Robert Mondavi, begin the construction of a pyramid in Napa Valley, California, where the leader/founder of the Church Of Satan, Ashkenazi Jew, Anton LaVey, was based. This is known as Opus 1 (which means, the first work), and the front for this temple is that it is a winery.

1980: The global phenomenon of privatisation starts. The Rothschilds are behind this from the very beginning in order to seize control of all publicly owned assets worldwide.

1981: Banque Rothschild is nationalised by the French government. The new bank is called, Compagnie Europenne de Banque. The Rothschilds subsequently set up a successor to this French bank, Rothschild & Cie Banque (RCB), which goes on to become a leading French investment house.

1982: From September 16 to 18, future Prime Minister of Israel and then Defence Minister, Ashkenazi Jew, Ariel Sharon, orchestrates Israel’s invasion of Lebanon, which provided ariel lighting in order to facilitate the killing of between 1000 and 2000 men, women and children in the Sabra and Shatila massacres.

1985: Eustace Mullins publishes, “Who Owns The TV Networks,” in which he reveals the Rothschilds have control of all three major U.S. Networks, which are: NBC; CBS; and ABC.

The New York Times reports the FBI is aware of at least a dozen incidents in which American officials transferred classified information to the Israelis, quoting (former Assistant Director of the F.B.I.) Raymond Wannal. The Justice Department does not prosecute.

Richard Smyth, the owner of MILCO, is indicted on charges of smuggling nuclear timing devices to Israel.

N. M. Rothschild & Sons advise the British government on the privatisation of British Gas. They subsequently advise the British government on virtually all of their other privatisations of state owned assets including: British Steel; British Coal; all the British regional electricity boards; and all the British regional water boards.

A British MP heavily involved in these privatisations is future Chancellor of the Exchequer, Norman Lamont, a former Rothschild banker.

1986: Mordechai Vanunu a technician at Dimona, Israel’s nuclear installation, from 1976 to 1985, discovers that the plant was secretly producing nuclear weapons.

His conscience made him speak out and in 1986 he provided the London Sunday Times with the facts and photos they used to tell the world about Israel’s nuclear weapons programme.

His evidence showed that Israel had stockpiled up to 200 nuclear warheads, with no debate or authorisation from it own citizens. On 30th September 1986, Vanunu was lured from London to Rome. There he was kidnapped, drugged and shipped to Israel.

After a secret trial he was sentenced to 18 years for, “treason,” and, “espionage,” (something Israel are very familiar with) though he had received no payment and had communicated with no foreign power.

He goes on to be held in complete isolation for 11 years, only allowed occasional visits from his family, lawyer and a priest, conducted through a metal screen. Although he completes his sentence, the Israeli government continues to hold him against his will.

1987: Edmond de Rothschild creates the World Conservation Bank which is designed to transfer debts from third world countries to this bank and in return those countries would give land to this bank. This is designed so the Rothschilds can gain control of the third world which represents 30% of the land surface of the Earth.

On April 24 the Wall Street Journal reveals the, “Role of Israel in Iran-Contra Scandal Won’t be Explored in Detail by Panels.”

1988: The ADL initiate a nationwide competition for law students to draft anti-hate legislation for minority groups. That competition is won by a man named, Joseph Ribakoff, whose thesis proposes that not only must hate motivated violence be banned, but also any words which stimulate: supiscion; friction; hate; and possible violence, these must also be criminalised.

This ADL prize-winning paper suggests that not only should state-agencies monitor and restrict free speech in general, but they should also censor all films that criticize identifiable groups. Furthermore, even if the person making the statement can justify it, for example Christians criticizing homosexuality because the bible expressly forbids it, Ribakoff asserts that the truth is to be no defence in court.

The only proof a court will need in order to secure a conviction of hate speech is that something has been said, and a minority group or member of such group has felt emotionally damaged as a result of such criticism. Therefore, under these proposals which the ADL will have forced into law all over the world less than 15 years later, Jesus Christ would have been arrested as a hate criminal.

This law is designed to protect the Rothschild conspiracy from being revealed in that if you criticize the Rothschilds criminal cabal, you will be targeted as anti-semitic, and thus risk imprisonment.

Philippe de Rothschild dies.

1989: Many of the satellite states in Eastern Europe, through the influence of Glasnost, become more open in their demands of freedom from Communist governance in their Republics.

Many revolutions happen in 1989, most of them involving the overthrow of their respective Communist governments and the replacement of them with Republics.

Thus, the hold the Communists had over Eastern Europe (the Iron Curtain) becomes very weak. Eventually, as a result of Perestroika and Glasnost, Communism collapses, not only in the Soviet Union but also in Eastern Europe.

In Russia, Boris Yeltsin (whose wife is the daughter of Joseph Stalin’s marriage to Rosa Kaganovich) and the Republican government takes steps to end the power of the Communist party by suspending and banning the party and seizing all their property.

This symbolised the fall of Communism in Russia, and resulted in the start of a mass exodus of 700,000 Jews from the former Soviet Union to Israel.

In the Israeli Journal, Hotam (24 November 1989), there is a report of a speech that then Israeli Deputy Foreign Minister, Ashkenazi Jew, Binyamin Netanyahu, gave to students at Bar Ilan University in which he states,

“Israel should have exploited the repression of the demonstrations in China, when world attention focused on that country, to carry out mass expulsions among the Arabs of the territories.”

The London and Paris Rothschilds announce the launch of a new subsidiary, Rothschild GmbH, in Frankfurt, Germany.

1991: Following the Iraqi invasion of Kuwait on August 2, 1990, on January 16 of this year the United States and Britain began an aerial bombing campaign of targets within Iraq. On 24 February the ground campaign commenced which was to last 100 hours until on February 28 when a horrendous war crime occurred.

This crime was the slaughter of 150,000 Iraqi troops with fuel air bombs. These Iraqis were fleeing on a crowded highway from Kuwait to Basra. President George Herbert Walker Bush ordered United States military aircraft and ground units to kill these surrendering troops, they were then bulldozed into mass unmarked graves in the desert, some still alive.

President Bush then ordered a cessation of hostilities. What was the significance of this slaughter and President Bush declaring the war over on this day? Well it was the day the, “Day of Purim,” fell on this year. This the day the Jews celebrate their victory over Ancient Babylon, now based within the borders of Iraq and a day when the Jews are encouraged to get bloody revenge against their perceived enemies.

At the Bilderberg Conference on June 6 to 9 of this year, in Baden-Baden, Germany, David Rockefeller (a Rothschild) made the following statement,

“We are grateful to the Washington Post, the New York Times, Time Magazine, and other great publications whose directors have attended our meetings and respected their promises of discretion for almost 40 years. It would have been impossible for us to develop our plan for the world, if we had been subjected to the lights of publicity during those years.

But the world is now more sophisticated and prepared to march towards a world government. The super-national sovereignty of an intellectual elite and world bankers is surely preferable to the national auto-determination practised in past centuries.”

1992: In March, former Federal Reserve Board Chairman, Paul A. Volker became Chairman of the European banking firm, J. Rothschild, Wolfensohn and Co.

Stephen Bryen, caught offering confidential documents to Israel in 1978, is serving on board of the pro-Israeli Jewish Institute for National Security Affairs while continuing as a paid consultant, with security clearance, on exports of sensitive US technology.

The Samson Option, by Seymour M. Hersh reports,

Illicitly obtained intelligence was flying so voluminously from LAKAM (a secret Israeli intelligence unit, a Hebrew acronym for Scientific Liaison Bureau) into Israeli intelligence that a special code name, JUMBO, was added to the security markings already on the documents. There were strict orders, Ari Ben-Menashe recalled. Anything marked JUMBO was not supposed to be discussed with your American counterparts.

The Wall Street Journal reports that Israeli agents apparently tried to steal Recon Optical Inc’s top-secret airborne spy-camera system.

On September 16th Britain’s pound collapses when currency speculators led by Rothschild agent, Ashkenazi Jew, George Soros, borrow pounds and sell them for Deutsche Marks, in the expectation of being able to repay the loan in devalued currency and to pocket the difference.

This results in the British Chancellor of the Exchequer, Norman Lamont, announcing a rise in interest rates of 5% in one day and as a result drives Britain into a recession which lasts many years as large numbers of businesses fail and the housing market crashes.

This is right on cue for the Rothschilds, after they had privatised Britain’s state owned assets during the 1980′s, driven the share price up, and then collapsed the markets so they could buy them up for pennies on the pound, a carbon copy of what Nathan Mayer Rothschild did to the British economy 180 years before, in 1812.

It cannot be overstated that the Chancellor of the Exchequer at that time, Norman Lamont, prior to becoming a MP, was a Merchant Banker with N. M. Rothschild and Sons, who he joined after reading Economics at Cambridge.

1993: Norman Lamont leaves the British government to return to N. M. Rothschild and Sons as a director, after his mission to collapse the British economy to profit the Rothschilds is accomplished.

Former Congressman, Paul Findley publishes his seminal book, Deliberate Deceptions: Facing the Facts About the U.S. Israeli Relationship.

In this book he lists the 65 United Nations Member Resolutions against Israel from the period 1955 to 1992, and the 30 United States vetoes on Israel’s behalf which if not made would have seen Israel have 95 resolutions against them at this point.

No matter, even with Israel’s puppet the United States helping them terrorise others, the 65 Resolutions passed against Israel are more than all the Resolutions passed against all other countries combined.

Not that Israel care too much about the views of the United Nations when you consider that less than two weeks after Israel’s attack on the USS Liberty (an attack designed to sink the Liberty and blame it on Egypt prompting the USA into a war with Egypt on behalf of Israeli Lies, remember the Mossad motto, By Way Of Deception, Thou Shalt Do War), the Israeli Foreign Minister, Aba Eban, stated of the United Nations,

“If the General Assembly were to vote by 121 votes to 1 in favor of, “Israel,” returning to the armistice lines (pre June 1967 borders), “Israel,” would refuse to comply with the decision,” New York Times 19 June 1967.

The ADL is caught operating a massive spying operation on critics of Israel, Arab-Americans, the San Francisco Labor Council, ILWU Local 10, Oakland Educational Association, NAACP, Irish Northern Aid, International Indian Treaty Council, the Asian Law Caucus and the San Francisco Police.

Data collected was sent to Israel and in some cases to South Africa. Pressure from Jewish organizations forces the city to drop the criminal case, but the ADL settles a civil lawsuit for an undisclosed sum of cash.

1995: Former atomic energy scientist, Dr Kitty Little claims the Rothschilds now control 80% of the world’s uranium supplies giving them a monopoly over nuclear power.

The Defense Investigative Service circulates a memo warning US military contractors that,

“Israel aggressively collects (US) military and industrial technology.”

The report stated that Israel obtains information using,

“ethnic targeting, financial aggrandizement, and identification and exploitation of individual frailties,” of US citizens.

1996: A General Accounting Office report, “Defense Industrial Security: Weaknesses in US Security Arrangements With Foreign-Owned Defense Contractors,” found that according to intelligence sources, “Country A,” (identified by intelligence sources as Israel, Washington Times, 22 February 1996),

“conducts the most aggressive espionage operation against the United States of any US ally.”

The Jerusalem Post (30 August 1996) quoted the report,

“Classified military information and sensitive military technologies are high-priority targets for the intelligence agencies of this country.”

The report described, “An espionage operation run by the intelligence organization responsible for collecting scientific and technologic information for (Israel) paid a US government employee to obtain US classified military intelligence documents.”

The Washington Report on Middle East Affairs (Shawn L. Twing, April 1996) noted that this was,

“a reference to the 1985 arrest of Jonathan Pollard, a civilian US naval intelligence analyst who provided Israel’s LAKAM espionage agency an estimated 800,000 pages of classified US intelligence information.”

The GAO report also noted that, “Several citizens of (Israel) were caught in the United States stealing sensitive technology used in manufacturing artillery gun tubes.”

An Office of Naval Intelligence document, “Worldwide Challenges to Naval Strike Warfare” reported that,

“US technology has been acquired (by China) through Israel in the form of the Lavi fighter and possibly SAM (surface-to-air) missile technology.”

Jane’s Defense Weekly (28 February 1996) noted that, “until now, the intelligence community has not openly confirmed the transfer of US technology (via Israel) to China.” The report noted that this, “represents a dramatic step forward for Chinese military aviation.” (Flight International, 13 March 1996).

Amschel Rothschild, 41, is strangled with the heavy cord of his own towel robe in his hotel room in Paris. French Prime Minister orders the French Police to close their investigation, and, Rupert Murdoch, born of a Jewish mother and so a Jew by Ashkenazi standards, instructs his editors and news managers around the world to report it as a heart attack, if they need to report it at all.

On 12 May United Nations Ambassador and Ashkenazi Jew, Madeleine Albright, when appearing on 60 Minutes, was asked the following by correspondent Lesley Stahl, in reference to the years of United States led economic sanctions against Iraq,

“We have heard that half a million children have died. I mean, that is more children than died in Hiroshima. And, you know, is the price worth it?”

To which Ambassador Albright replied,

“I think that is a very hard choice, but the price, we think, the price is worth it.”

Her comments cause no public outcry. In fact, the holocaust of half a million Iraqi children is positively admired by the United States government when you consider less than 8 months later, President Clinton appointed Albright as secretary of state. Whilst appearing before the Senate Committee, who were considering her appointment, Albright is literally chomping at the bit for the blood of more Iraqi children and she states,

“We will insist on maintaining tough UN sanctions against Iraq unless and until that regime complies with relevant Security Council resolutions.”

1997: An Army mechanical engineer, Ashkenazi Jew, David A. Tenenbaum, “inadvertently,” gives classified military information on missile systems and armored vehicles to Israeli officials (New York Times, 20 February 1997).

The Washington Post reports US intelligence has intercepted a conversation in which two Israeli officials had discussed the possibility of getting a confidential letter that then-Secretary of State Warren Christopher had written to Palestinian leader Yasser Arafat.

One of the Israelis, identified only as, Dov had commented that they may get the letter from, Mega, the code name for Israel’s top agent inside the United States.

US ambassador to Israel, Martin Indyk, complains privately to the Israeli government about heavy-handed surveillance by Israeli intelligence agents.

Israeli agents place a tap on Ashkenazi Jew and daughter of a Rabbi, Monica Lewinsky’s, phone at the Watergate and record phone sex sessions between her and President Bill Clinton. The Ken Starr report confirms that Clinton warned Lewinsky their conversations were being taped and ended the affair. Interestingly, at the same time, the FBI’s hunt for, “Mega,” is called off.

On 29 October Edmond de Rothschild dies in Geneva. Interestingly on the exact same day Anton Szandor LaVey, the founder of the Church of Satan also dies, who in his book, “Satan Speaks,” he states in relation to The Protocols Of The Elders Of Zion,

“The first time I read the Protocols of the Elders of Zion, my instinctive reaction was, So what’s wrong with THAT? Isn’t that the way any master plan should work? Doesn’t the public deserve – nay, demand – such despotism?”

Kofi Annan becomes Secretary General to the United Nations. He is married to Nane Lagergren, a Rothschild, who he wed in 1984.

1998: The European Central Bank is set up in Frankfurt, the city from which the Rothschilds originate.

2000: George W. Bush is elected (so they tell me) President of the United States. Bush and his family claim to be descendants of the House of Plantagenet which is descended from the Royal House of Judah.

2001: On September 11th the attack on the World Trade Center is orchestrated by Israel with the complicity of Britain and America, under the orders of the Rothschilds as a pretext for removing the liberty of people worldwide in exchange for security, just as happened with the Reichstag fire in Germany where the citizens were lied to in order to give up liberty for security.

They also will use the attacks to gain control of the few nations in the world who don’t allow Rothschild central banks and so less than one month after these attacks, US forces attack Afghanistan, one of only 7 nations in the world who don’t have a Rothschild controlled central bank.

Less than a week before the 9-11 attack on 5 September, the so-called lead hijacker Mohamed Atta and several other hijackers made a still-unexplained visit onboard one of Pro Israeli lobbyist, Ashkenazi Jew, Jack Abramoff’s casino boats.

No investigation is undertook as to what they were doing there. It is discovered that US drug agents communications have been penetrated. Suspicion falls on two companies, AMDOCS and Comverse Infosys, both owned by Israelis. AMDOCS generates billing data for most US phone companies and is able to provide detailed logs of who is talking to whom.

Comverse Infosys builds the tapping equipment used by law enforcement to eavesdrop on all American telephone calls, but suspicion forms that Comverse Infosys, which gets half of its research and development budget from the Israeli government, has built a back door into the system that is being exploited by Israeli intelligence and that the information gleaned on US drug interdiction efforts is finding its way to drug smugglers.

The investigation by the FBI leads to the exposure of the largest foreign spy ring ever uncovered inside the United States, operated by Israel. Half of the suspected spies have been arrested when 9-11 happens.

On 9-11, 5 Israelis are arrested for dancing and cheering while the World Trade Towers collapse. Supposedly employed by Urban Moving Systems, the Israelis are caught with multiple passports and a lot of cash.

Two of them are later revealed to be Mossad. As witness reports track the activity of the Israelis, it emerges that they were seen at Liberty Park at the time of the first impact, suggesting a foreknowledge of what was to come. The Israelis are interrogated, and then eventually sent back to Israel.

The owner of the moving company used as a cover by the Mossad agents abandons his business and flees to Israel. The United States Government then classifies all of the evidence related to the Israeli agents and their connections to 9-11.

All of this is reported to the public via a four part story on Fox News by Carl Cameron. Pressure from Jewish groups, primarily AIPAC, forces Fox News to remove the story from their website. Two hours prior to the 9-11 attacks, Odigo, an Israeli company with offices just a few blocks from the World Trade Towers, receives an advance warning via the internet.

The manager of the New York Office provides the FBI with the IP address of the sender of the message, but the FBI does not follow this up. The FBI is investigating 5 Israeli moving companies as possible fronts for Israeli intelligence.

It is revealed that prior to the attack millions of dollars of put options on both American Airlines and United Airlines, were traded. The FBI have promised to followed the purchasers up, but have never revealed their findings. That is because this would lead directly to Israel, the state behind the 911 attacks.

Following the World Trade Center attack, anonymous letters containing anthrax are sent to various politicians and media executives. Like the 9-11 attack this is immediately blamed on Al-Qaeda , until it is discovered that the anthrax contained within those letters is a specific type of weaponized anthrax made by a United States military laboratory.

The FBI then discover that the main suspect for these anthrax letters is a Ashkenazi Jew, Dr. Philip Zack, who had been reprimanded several times by his employers due to offensive remarks he made about Arabs. Dr. Philip Zack, was caught on camera entering the storage area where he worked at Fort Detrick which is where the Anthrax was kept. At this point, both the FBI and the mainstream media stopped making any public comments on the case.

Jewish Defence League Chairman since 1985, Ashkenazi Jew, Irv Rubin is jailed for allegedly plotting to bomb a mosque and the offices of a Arab-American congressman. He dies shortly after slitting his throat in a suicide attempt, before he can be brought to trial.

One week prior to the WTC attack, the Zim Shipping Company moves out of its offices in the WTC, breaking its lease and costing the company $50,000. No reason has ever been given, but Zim Shipping Company is half owned by the State of Israel (The Rothschilds).

On October 3, Israeli Prime Minister, Ariel Sharon, makes the following statement to Ashkenazi Jew, Shimon Peres, as reported on Kol Yisrael radio.

“Every time we do something you tell me America will do this and will do that….I want to tell you something very clear, don’t worry about American pressure on Israel. We, the Jewish people, control America, and the Americans know it.”

2002: Webster’s Third New International Dictionary (Unabridged), re-printed in 2002, provides a new definition of Anti Semitism which has not been updated since 1956. It reads,

“Anti-Semitism: (1) hostility toward Jews as a religious or racial minority group, often accompanied by social, political or economic discrimination (2) opposition to Zionism (3) sympathy for the opponents of Israel.”

It was definition (2) and (3) that were added in the 2002 edition, just before the USA decide to invade Iraq under orders from the State of Rothschild, I mean Israel. Also this year, the Prime Minister of Israel, war criminal, Ariel Sharon, orders the massacre in the Jenin refugee camp in the West Bank. Best get that definition updated to protect these criminals.

The DEA issues a report that Israeli spies, posing as art students, have been trying to penetrate US Government offices. Police near the Whidbey Island Naval Air Station in southern Washington State stop a suspicious truck and detain two Israelis, one of whom is illegally in the United States. The two men were driving at high speed in a Ryder rental truck, which they claimed had been used to, “deliver furniture.”

The next day, police discovered traces of TNT and RDX military-grade plastic explosives inside the passenger cabin and on the steering wheel of the vehicle. The FBI then announces that the tests that showed explosives were, “false positived,” by cigarette smoke, a claim test experts say is ridiculous.

Based on an alibi provided by a woman, the case is closed and the Israelis are handed over to INS to be sent back to Israel. One week later, the woman who provided the alibi vanishes.

2003: The United States invade Iraq on 19 March, which this year is the holy, “Day of Purim,” in the Jewish calendar. This, “Day of Purim,” is a day the Jews celebrate their victory over Ancient Babylon, now based within the borders of Iraq, how interesting.

What is also significant is that the previous U.S. led invasion of Iraq ended on the Day of Purim ten years earlier with the slaughter of 150,000 fleeing Iraqis under the current President’s father, George Herbert Walker Bush. Purim is also the time when the Jews are encouraged to get bloody revenge against their perceived enemies.

Ancient Babylon, I mean Iraq, is now one of six nations left in the world who don’t have a Rothschild controlled central bank. This war is mainly about stealing Iraq’s water supply for Israel and is being fought with the blood of the American military which the State of Rothschild, I mean Israel control.

Israel has always struggled for water, it had to steal the Golan Heights from Syria which provided Israel with one third of its fresh water 36 years before, yet still in Israel water extraction has surpassed replacement by 2.5 billion metres in the last 25 years.

This means the water is far more precious to them than the oil reserves which are the second largest reserves of oil on the planet.

Malaysian Prime Minister Mahathir Mohamed states in a speech,

“Jews rule the world by proxy. They get others to fight and die for them.”

The Police Chief of Cloudcroft stops a truck speeding through a school zone. The drivers turn out to be Israelis with expired passports. Claiming to be movers, the truck contains junk furniture and several boxes.

The Israelis are handed over to immigration. The contents of the boxers are not revealed to the public.

Israel deploys assassination squads into other countries, including the United States. The US Government does not protest.

2004: Two years into an investigation of AIPAC’s (The American Israel Public Affairs Committee’ the largest political lobbying group in the USA with over 65,000 members whose only purpose is to use the USA for the purposes of Israel) possible role as a spy front for Israel, Ashkenazi Jew, Larry Franklin, a mid-level Pentagon Analyst is observed by the FBI giving classified information to two officials of AIPAC suspected of being Israeli spies.

AIPAC hires lawyer Nathan Lewin to handle their legal defense, the same lawyer who defended suspected Israeli spy Stephen Bryen in 1978. Larry Franklin worked in the Pentagon Office of Special Plans, run by Richard Perle, at the time Perle (who was caught giving classified information to Israel back in 1970) was insisting that Iraq was crawling with weapons of mass destruction requiring the United States to invade and conquer Iraq.

There were no WMDs, of course, and Perle has dumped the blame for the, “bad intelligence,” on George Tenet. But what is known is that the Pentagon Office of Special Plans was coordinating with a similar group in Israel, in Ariel Sharon’s office.

With two suspected Israeli spies (at least) inside the office from which the lies that launched the war in Iraq originated, it appears that the people of the United States are the victims of a deadly hoax, a hoax that started a war using the blood and money of American citizens for the purposes of Israeli oppression.

The leaking of the investigation of AIPAC to the media on August 28th, 2004 gave advance warning to other spies working with Franklin. The damage to the FBI’s investigation was completed when United States Attorney General John Ashcroft ordered the FBI to stop all arrests in the case.

Like the Stephen Bryen case and the hunt for, “Mega,” this latest spy scandal seems destined by officials who have their own secret allegiances to protect, barring a massive public outcry.

Police near the Nuclear Fuel Services plant in Tennessee stop a truck after a three mile chase, during which the driver throws a bottle containing a strange liquid from the cab. The drivers turn out to be Israelis using fake identifications. The FBI refuses to investigate and the Israelis are released.

Two Israelis try to enter Kings Bay Naval Submarine Base, home to eight Trident submarines. The truck tests positive for explosives.

The National Director of the ADL, Abraham H. Foxman, publishes a book entitled, “Never Again? The Threat Of The New Anti-Semitism,” in which he states that the New Testament’s “lie,” that the ancient Pharisees were responsible for the death of Christ, has been responsible for anti-semitism throughout the millennia and thus the New Testament of the bible is, “hate speech,” and should be censored or banned.

2005: On January 20, President Bush makes the following statement as part of his second inaugural address, “When our Founders declared a new order of the ages.” This is not true. The founders did not declare a, “new order of the ages,” President Roosevelt did when in 1933, he put it’s latin translation, “Novus Ordo Seclorum,” on the dollar bill.

On 7 July the London Underground Network is bombed. Israel’s Finance Minister, Binyamin Netanyahu is in London on the morning of the attacks in order to attend an economic conference in a hotel over the underground station where one of the blasts occurred, but stayed in his hotel room instead after he had been informed by Israeli intelligence officials attacks were expected.

There are now only 5 nations on the world left without a Rothschild controlled central bank: Iran; North Korea; Sudan; Cuba; and Libya.

Physics Professor, Stephen E. Jones of Brigham Young University publishes a paper in which he proves the World Trade Center buildings could have only been brought down in the manner they were by explosives. He receives no coverage in the mainstream media for his scientific and provable claims.

2006: The Edmond De Rothschild Banque, a subsidiary of Europe’s Edmond De Rothschild family bank group in France, becomes the first foreign family bank that has obtained approval of the China Banking Regulatory Commission and entered China’s financial market.

The ADL ruthlessly leans on governments throughout the world to pass hate crimes legislation, as they are scared that the criminal cabal that is Israel and the Rothschilds is being exposed more and more on a daily basis, predominantly on the internet. Their job is to protect this criminal network and what better way to do it than by passing laws in which anyone who exposes a Jewish criminal becomes a criminal.

David Irving is sentenced to three years in jail in Austria, for denying the holocaust. It is important to note that the only historical event you can be arrested for questioning is the holocaust. This is because this has been the Rothschilds greatest weapon in brainwashing YOU, THE STUPID GOY! is that the Jews are so poor and persecuted when in actual fact they control the vast majority of international finance and international corporations throughout the world.

Resources

Here is a link to 6 pages of autographs from the 1929 Zionist congress with some very interesting names on it.
Main page: www.historyforsale.com

Sources

Holy Bible – King James Version

Proofs of a Conspiracy Against All the Religions and Governments of Europe Carried on in the Secret Meetings of Freemasons, Illuminati and Reading Societies – John Robison – 1798

The Life of Napolean – Sir Walter Scott – 1827

Coningsby – Benjamin Disraeli – 1844

The Communist Manifesto – Karl Marx, Friedrich Engels, Martin Malia – 1848

Morals and Dogma of the Ancient and Accepted Scottish Rite of Freemasonry – Albert Pike – 1872

The Rothschilds, Financial Rulers Of Nations – John Reeves – 1887

The Jews and Modern Capitalism – Werner Sombart – 1911

Great Britain, The Jews, and Palestine – Samuel Landman – 1936

Pawns In The Game – William Guy Carr – 1937

Inside The Gestapo – Hansjurgen Koehler – 1940

Barriers Down – Kent Cooper – 1942

The Mind Of Adolf Hitler – Walter Langer – 1943

The Empire Of The City – E. C. Knuth – 1946

The Jewish State – Theodor Herzl – 1946

The Curious History of the Six-Pointed Star – G. Scholem – 1949

Secrets Of The Federal Reserve – Eustace Mullins – 1952

Tales Of The British Aristocracy – L. G. Pine – 1957

Red Fog Over America – William Guy Carr – 1958

A Jewish Defector Warns America (Spoken Word Recording) – Benjamin H. Freedman – 1961

The Rothschilds – Frederic Morton – 1962

The Illuminati and the Council on Foreign Relations (Spoken Word Recording) – Myron Fagan – 1967

Ben-Gurion: The Armed Prophet – Michael Bar-Zohar – 1967

The Hidden Tyranny – Benjamin Freedman – 1971

None Dare Call It Conspiracy – Gary Allen – 1972

The Gulag Archipelago, Vol. 2, Parts 3 and 4 – Aleksandr Solzhenitsyn – First English translation published 1975.

Wall Street And The Rise Of Hitler – Anthony C. Sutton – 1976

The Rosenthal Document – Walter White, Jr. – 1978

Two Rothschilds And The Land Of Israel – Simon Schama – 1978

The Six Pointed Star – Dr O. J. Graham – 1984

The Last Days In America – Bob Fraley – 1984

Who Owns The TV Networks – Eustace Mullins – 1985

The Samson Option: Israel’s Nuclear Arsenal and American Foreign Policy – Seymour M. Hersh – 1991

A History of the Jews in America – Howard M. Sachar – 1992

Deliberate Deceptions: Facing the Facts About the U.S. Israeli Relationship – Paul Findley – 1993

Descent Into Slavery – Des Griffin – 1994

Bloodlines Of The Illuminati – Fritz Springmeier – 1995

Jewish History, Jewish Religion – Israel Shahak – 1994

Satan Speaks – Anton Szandor LaVey – 1998

The Elite Serial Killers of Lincoln, JFK, RFK & MLK – Robert Gaylon Ross – 2001

Never Again? The Threat Of The New Anti-Semitism – Abraham H. Foxman – 2004

The Elite Don’t Dare Let Us Tell The People – Robert Gaylon Ross – 2004

The Rothschilds have been in control of the world for a very long time, their tentacles reaching into many aspects of our daily lives, as is documented in the following timeline. However, before you jump to the timeline, please read this invaluable introduction which will tell you who the Rothschilds are as oppose to who they claim to be.

The Rothschilds claim that they are Jewish, when in fact they are Khazars. They are from a country called Khazaria, which occupied the land locked between the Black Sea and the Caspian Sea which is now predominantly occupied by Georgia. The reason the Rothschilds claim to be Jewish is that the Khazars under the instruction of the King, converted to the Jewish faith in 740 A.D., but of course that did not include converting their Asiatic Mongolian genes to the genes of the Jewish people.

You will find that approximately 90% of people in the world today who call themselves Jews are actually Khazars, or as they like to be known, Ashkenazi Jews. These people knowingly lie to the world with their claims that the land of Israel is theirs by birthright, when in actual fact their real homeland is over 800 miles away in Georgia.

So, next time you hear an Israeli Prime Minister bleating about the so-called persecution of the Jews, consider this, every Prime Minister of Israel has been an Ashkenazi Jew. Therefore when all these Prime Ministers have curried favour with the West for their re-establishment of a Jewish homeland, they have knowingly and deliberately lied to you, as they were never from that region, and they well know it, because it is they who call themselves Ashkenazi Jews.

The Book of Revelation, Chapter 2, Verse 9, states the following which would appear to be about these Ashkenazi Jews:

“I know thy works, and tribulation and poverty, (but thou art rich) and I know the blasphemy of them which say they are Jews, and are not, but are the synagogue of Satan.”

The most wealthy bloodline in the world bar none and the leader of the Ashkenazi Jews in the world today is the Rothschild family. As you will see in the timeline, the Rothschilds have obtained this position through lies, manipulation and murder. Their bloodline also extends into the Royal Families of Europe, and the following family names: Astor; Bundy; Collins; duPont; Freeman; Kennedy; Morgan; Oppenheimer; Rockefeller; Sassoon; Schiff; Taft; and Van Duyn.

However, these are not the only bloodlines to worry about. You are probably aware of the centuries old pratice undertaken by many Ashkenazi Jews whereby they would change their name, in order for them to appear part of the dominant race of the country in which they lived, so as they could obtain influential positions in that country, which they would then exploit to serve their real masters elsewhere. There is plenty of evidence to prove the Rothschilds continue that deceptive tradition.

Furthermore the Rothschilds are known to sire many children secretly that they can put into positions of power when required. This started with the very first man who took the name Rothschild, who had a secret sixth son. Finally, remember the world is a diverse place, I could if I wanted change my name to Rothschild, or any of the names listed above, and that would not make me part of this family anymore than converting to Judaism in 740 A.D. will make these Ashkenazis Jewish.

Please, therefore, do not automatically assume someone you see with the name Rothschild or any of the names listed above are part of the Rothschild criminal network. Furthermore and most importantly, the majority of Ashkenazi Jews are innocent and not part of this network. Check the facts out for yourself first, this article is designed to inform people who the enemy is, not single out people of a particular race or people with a particular surname, who may have nothing to do with this Rothschild criminal network.

1743: Mayer Amschel Bauer, an Ashkenazi Jew, is born in Frankfurt, Germany, the son of Moses Amschel Bauer, a money lender and the proprietor of a counting house.

Moses Amschel Bauer places a red sign above the entrance door to his counting house. This sign is a red hexagram (which geometrically and numerically translates into the number 666) which under Rothschild instruction will end up on the Israeli flag some two centuries later.

1753: Gutle Schnaper, an Ashkenazi Jew (future wife of Mayer Amschel Bauer), born to respected merchant, Wolf Salomon Schnaper.

1760: During this decade Mayer Amschel Bauer works for a bank owned by the Oppenheimers’ in Hanover, Germany. He is highly successful and becomes a junior partner. Whilst working at the bank he becomes acquainted with General von Estorff.

Following his father’s death, Bauer returns to Frankfurt to take over his father’s business. Bauer recognises the significance of the red hexagram and changes his name from Bauer to Rothschild, after the red hexagram or sign signifying 666 hanging over the entrance door (“Rot,” is German for, “Red,” “Schild,” is German for, “Sign”).

Now Mayer Amschel Rothschild, he discovers that General von Estorff is now attached to the court of Prince William IX of Hesse-Hanau, one of the richest royal houses in Europe, which gained its’ wealth by the hiring out of Hessian soldiers to foreign countries for vast profits (a practice that continues today in the form of exporting, “peacekeeping,” troops throughout the world).

He therefore makes the General’s re-acquaintance on the pretext of selling him valuable coins and trinkets at discounted prices. As he plans, Rothschild is subsequently introduced to Prince William himself who is more than pleased with discounted prices he charges for his rare coins and trinkets, and Rothschild offers him a bonus for any other business the Prince can direct his way.

Rothschild subsequently becomes close associates with Prince William, and ends up doing business with him and members of the court. He soon discovers that loaning money to governments and royalty is more profitable than loaning to individuals, as the loans are bigger and are secured by the nation’s taxes.

1769: Mayer Amschel Rothschild is given permission by Prince William to hang a sign on the front of his business premises declaring that he is, “M. A. Rothschild, by appointment court factor to his serene highness, Prince William of Hanau.”

1770: Mayer Amschel Rothschild draws up plans for the creation of the Illuminati and entrusts Ashkenazi Jew, Adam Weishaupt, a Crypto-Jew who was outwardly Roman Catholic, with its organization and development. The Illuminati is to be based upon the teachings of the Talmud, which is in turn, the teachings of Rabbinical Jews. It was to be called the Illuminati as this is a Luciferian term which means, keepers of the light.

Mayer Amschel Rothschild marries Gutle Schnaper.

1773: Amschel Mayer Rothschild born, the first of Mayer Amschel Rothschild’s sons. He like all his brothers who follow him, will enter the family business at the age of 12.

1774: Salomon Mayer Rothschild born.

1776: Adam Weishaupt officially completes his organisation of the Illuminati on May 1 of this year. The purpose of the Illuminati is to divide the goyim (all non-Jews) through political, economic, social, and religious means. The opposing sides were to be armed and incidents were to be provided in order for them to: fight amongst themselves; destroy national governments; destroy religious institutions; and eventually destroy each other.

Weishaupt soon infiltrates the Continental Order of Freemasons with this Illuminati doctrine and establishes lodges of the Grand Orient to be their secret headquarters. This was all under the orders and finance of Mayer Amschel Rothschild and the concept has spread and is followed within Masonic Lodges worldwide to the present day.

Weishaupt also recruits 2,000 paid followers including the most intelligent men in the field of arts and letters, education, science, finance,and industry. They were instructed to follow the following methods in order to control people.

1) Use monetary and sex bribery to obtain control of men already in high places, in the various levels of all governments and other fields of endeavour. Once influential persons had fallen for the lies, deceits, and temptations of the Illuminati they were to be held in bondage by application of political and other forms of blackmail, threats of financial ruin, public exposure, and fiscal harm, even death to themselves and loved members of their families.

2) The faculties of colleges and universities were to cultivate students possessing exceptional mental ability belonging to well-bred families with international leanings, and recommend them for special training in internationalism, or rather the notion that only a one-world government can put an end to recurring wars and strife. Such training was to be provided by granting scholarships to those selected by the Illuminati.

3) All influential people trapped into coming under the control of the Illuminati, plus the students who had been specially educated and trained, were to be used as agents and placed behind the scenes of all governments as experts and specialists. This was so they would advise the top executives to adopt policies which would in the long-run serve the secret plans of the Illuminati one-world conspiracy and bring about the destruction of the governments and religions they were elected or appointed to serve.

4) To obtain absolute-control of the press, at that time the only mass-communications media which distributed information to the public, so that all news and information could be slanted in order to make the masses believe that a one-world government is the only solution to our many and varied problems.

1777: Nathan Mayer Rothschild born.

1784: Adam Weishaupt issues his order for the French Revolution to be started by by Maximilien Robespierre in book form. This book was written by one of Weishaupt’s associates, Xavier Zwack, and sent by courier from Frankfurt to Paris. However en route there, the courier is struck by lightning, the book detailing this plan discovered by the police, and handed over to the Bavarian authorities.

As a consequence, the Bavarian government orders the police to raid Weishaupt’s masonic lodges of the Grand Orient, and the homes of his most influential associates. Clearly, the Bavarian authorities were convinced that the book that was discovered was a very real threat by a private group of influential people, to use wars and revolutions to achieve their political ends.

1785: The Bavarian government outlaw the Illuminati and close all the Bavarian lodges of the Grand Orient.

Mayer Amschel Rothschild moves his family home to a five storey house in Frankfurt which he shares with the Schiff family.

1786: The Bavarian government publish the details of the Illuminati plot in a document entitled, “The Original Writings of The Order and Sect of The Illuminati.” They then send this document to all the heads of church and state throughout Europe, but sadly their warning is ignored.

1788: Kalmann (Carl) Mayer Rothschild Born.

1789: Due to the European ignorance of the Bavarian government’s warning, the Illuminati’s plan for a French Revolution succeeded from this year to 1793. This revolution was a bankers’ dream, it established a new constitution and passed laws that forbade the Roman Church from levying tithes (taxes) and also removed its exemption from taxation.

1790: Mayer Amschel Rothschild states,

“Let me issue and control a nation’s money and I care not who writes the laws.”

1791: The Rothschilds get, “control of a nation’s money,” through Alexander Hamilton (their agent in George Washington’s cabinet) when they set up a central bank in the USA called the First Bank of the United States. This is established with a 20 year charter.

1792: Jacob (James) Mayer Rothschild born.

1796: Amschel Mayer Rothschild marries Eva Hanau.

1798: John Robison publishes a book entitled, “Proofs of a Conspiracy Against All the Religions and Governments of Europe Carried on in the Secret Meetings of Freemasons, Illuminati and Reading Societies.” In this book, Professor Robison of the University of Edinburgh, one of the leading intellects of his time, who in 1783 was elected general secretary of the Royal Society of Edinburgh, gave details of the whole Rothschild Illuminati plot.

He advised how he had been a high degree mason in the Scottish Rite of Freemasonry, and had been invited by Adam Weishaupt to Europe, where he had been given a revised copy of Weishaupt’s conspiracy. However, although he pretended to go along with it, Professor Robison did not agree with it and therefore published his aforementioned book. The book included details of the Bavarian government’s investigation into the Illuminati and the French Revolution.

That same year on July 19th, David Pappen, President of Harvard University, lectured the graduating class on the influence illuminism was having on American politics and religion.

At the age of 21, Nathan Mayer Rothschild leaves Frankfurt for England, where with a large sum of money given to him by his father, he sets up a banking house in London.

1800: Salomon Mayer Rothschild marries Caroline Stern.

1806: Napolean states that it is his,

“object to remove the house of Hess-Cassel from rulership and to strike it out of the list of powers.”

On hearing this, Prince William IX of Hesse-Hanau, flees Germany, goes to Denmark and entrusts his fortune valued at $3,000,000 at that time to Mayer Amschel Rothschild for safekeeping.

Nathan Mayer Rothschild marries Hannah Barent Cohen the daughter of a wealthy London merchant.

1808: Nathan Mayer Rothschild has his first son born Lionel Nathan de Rothschild.

1810: Sir Francis Baring and Abraham Goldsmid die. This leaves Nathan Mayer Rothschild as the remaining major banker in England.

Salomon Mayer Rothschild goes to Vienna, Austria and sets up the bank, M. von Rothschild und Sohne.

1811: The charter for the Rothschilds Bank of the United States runs out and Congress votes against its renewal. Nathan Mayer Rothschild is not amused and he states,

“Either the application for renewal of the charter is granted, or the United States will find itself involved in a most disastrous war.”

However the United States stands firm and the Charter is not renewed, which causes Nathan Mayer Rothschild to issue another threat,

“Teach those impudent Americans a lesson. Bring them back to colonial status.”

1812: Backed by Rothschild money, and Nathan Mayer Rothschild’s orders, the British declare war on the United States. The Rothschilds plan was to cause the United States to build up such a debt in fighting this war that they would have to surrender to the Rothschilds and allow the charter for the Rothschild owned First Bank of the United States to be renewed.

Mayer Amschel Rothschild dies. In his will he lays out specific laws that the House of Rothschild were to follow: all key positions in the family business were only to be held by family members; only male members of the family were allowed to participate in the family business, this included a reported sixth secret bastard son (It is important to note that Mayer Amschel Rothschild also has five daughters, so today the spread of the Rothschild Zionist dynasty without the Rothschild name is far and wide, and Jews believe the mixed offspring of a Jewish mother is solely Jewish); the family was to intermarry with it’s first and second cousins to preserve the family fortune (of the 18 marriages by Mayer Amschel Rothschild’s grandchildren, 16 were between first cousins – a practice known today as inbreeding); no public inventory of his estate was to be published; no legal action was to be taken with regard to the value of the inheritance; the eldest son of the eldest son was to become the head of the family (this condition could only be overturned when the majority of the family agreed otherwise).

This was straightaway the case and Nathan Mayer Rothschild was elected head of the family following his father, Mayer Amschel Rothschild’s death.

Jacob (James) Mayer Rothschild goes to Paris, France to set up the bank, de Rothschild Freres.

Nathaniel de Rothschild, the son in law of Jacob (James) Mayer Rothschild, born.

1814: With regard to the $3,000,000 Prince William IX of Hesse-Hanau had entrusted to Mayer Amschel Rothschild for safekeeping, for an account of what happened next we turn to the Jewish Encyclopaedia, 1905 edition, Volume 10, page 494, which states,

“According to legend this money was hidden away in wine casks, and, escaping the search of Napoleon’s soldiers when they entered Frankfurt, was restored intact in the same casks in 1814, when the elector (Prince William IX of Hesse-Hanau) returned to the electorate (Germany). The facts are somewhat less romantic, and more businesslike.”

This last line indicates the money was never returned by Rothschild to Prince William IX of Hesse-Hanau. The encyclopaedia goes on to state,

“Nathan Mayer Rothschild invested this $3,000,000 in, gold from the East India Company knowing that it would be needed for Wellington’s peninsula campaign.”

On the stolen money Nathan made,

“no less than four profits:

i) On the sale of Wellington’s paper which he bought at 50 cents on the dollar and collected at par;
ii) on the sale of gold to Wellington;
iii) on its repurchase; and
iv) on forwarding it to Portugal.”

1815: The five Rothschild brothers work to supply gold to both Wellington’s army (through Nathan in England) and Napoleon’s army (through Jacob in France), and begin their policy of funding both sides in wars. The Rothschilds love wars because they are massive generators of risk free debt.

This is because they are guaranteed by the government of a country, and therefore the efforts of the population of that country, and it doesn’t matter if that country loses the war because the loans are given on the guarantee that the victor will honour the debts of the vanquished.

Whilst the Rothschilds are funding both sides in this war, they use the banks they have spread out across Europe to give them the opportunity to set up an unrivalled postal service network of secret routes and fast couriers. The post these couriers carried was to be opened up by these couriers and their details given to the Rothschilds so they always were one step ahead of current events.

Furthermore, these Rothschild couriers were the only merchants allowed to pass through the English and French blockades. It was these couriers who also kept Nathan Mayer Rothschild up to date with how the war was going so he could use that intelligence to buy and sell from his position on the stock exchange in accordance with that intelligence.

One of Rothschild’s couriers was a man named Rothworth. When the outcome of the Battle of Waterloo was won by the British, Rothworth took off for the Channel and was able to deliver this news to Nathan Mayer Rothschild, a full 24 hours before Wellington’s own courier.

At that time British bonds were called consuls and they were traded on the floor of the stock exchange. Nathan Mayer Rothschild instructed all his workers on the floor to start selling consuls. The made all the other traders believe that the British had lost the war so they started selling frantically.

Therefore the consuls plummeted in value which was when Nathan Mayer Rothschild discreetly instructed his workers to purchase all the consuls they could lay their hands on.

When news came through that the British had actually won the war, the consuls went up to a level even higher than before the war ended leaving Nathan Mayer Rothschild with a return of approximately 20 to 1 on his investment.

This gave the Rothschild family complete control of the British economy, now the financial centre of the world following Napolean’s defeat, and forced England to set up a new Bank of England, which Nathan Mayer Rothschild controlled.

Interestingly 100 years later the New York Times would run a story stating that Nathan Mayer Rothschild’s grandson had attempted to secure a court order to suppress publication of a book which had this insider trading story in it. The Rothschild family claimed the story was untrue and libellous, but the court denied the Rothschilds request and ordered the family to pay all court costs.

Back to 1815, this is the year Nathan Mayer Rothschild makes his famous statement,

“I care not what puppet is placed upon the throne of England to rule the Empire on which the sun never sets. The man who controls Britain’s money supply controls the British Empire, and I control the British money supply.”

He would go onto brag that in the 17 years he had been in England he had increased the 20,000 stake given to him by his father, 2500 times to 50 million.

The Rothschilds also use their control of the Bank of England to replace the method of shipping gold from country to country and instead used their five banks spread across Europe to set up a system of paper debits and credits, the banking system of today.

By the end of this century, a period of time that was known as the, “Age of the Rothschilds,” it is estimated that the Rothschild family controlled half the wealth of the world.

However something that did not go well for the Rothschilds this year was the Congress of Vienna, which started in September, 1814 and concluded in June of this year. The reason for this Congress of Vienna, was for the Rothschilds to create a form of world government, to give them complete political control over much of the civilized world.

Many of the European governments were in debt to the Rothschilds, so they figured they could use that as a bargaining tool. However the Tsar Alexander I of Russia, who had not succumbed to a Rothschild central bank, would not go along with the plan, so the Rothschild world government plan failed.

Enraged by this, Nathan Mayer Rothschild swore that some day he or his descendants would destroy the Tsar Alexander I’s entire family and descendants. Unfortunately he was true to his word and 102 years later Rothschild funded Bolsheviks would act upon that promise.

Interestingly, world government fanatic and Ashkenazi Jew, Henry Kissinger, did his doctoral dissertation on the Congress of Vienna.

1816: The American Congress passes a bill permitting yet another Rothschild dominated central bank, which gives the Rothschilds control of the American money supply again. This is called the Second Bank of the United States and is given a twenty year charter. The British war against the America therefore ends with the deaths of thousands of British and American soldiers, but the Rothschilds get their bank.

1818: Following the French securing massive loans in 1817 in order to help rebuild after their disastrous defeat at Waterloo, Rothschild agents bought vast amounts of French government bonds causing their value to increase.

On November 5th they dumped the lot on the open market causing their value to plummet and France to go into a financial panic. The Rothschilds then stepped in to take control of the French money supply. This was the same year the Rothschilds were able to loan 5,000,000 to the Prussian government.

1821: Kalmann (Carl) Mayer Rothschild was sent to Naples, Italy. He would end up doing a lot of business with the Vatican and Pope Gregory XVI subsequently conferred upon him the Order of St. George.

Also, whenever the Pope received Kalmann, he would give him his hand rather than the customary toe to kiss, which showed the extent of Kalmann’s power over the Vatican.

1822: The emperor of Austria made the five Rothschild brothers Barons. Nathan Mayer Rothschild chose not to take up the title.

1823: The Rothschilds take over the financial operations of the Catholic Church, worldwide.

1827: Sir Walter Scott publishes his nine volume set, The life of Napolean and in volume two he states that the French Revolution was planned by the Illuminati (Adam Weishaupt) and was financed by the money changers of Europe (The Rothschilds).

1832: President Andrew Jackson (the 7th President of the United States from 1829 to 1837), runs the campaign for his second term in office under the slogan, “Jackson And No Bank!” This is in reference to his plan to take the control of the American money system to benefit the American people, not for the profiteering of the Rothschilds.

1833: President Andrew Jackson starts removing the government’s deposits from the Rothschild controlled, Second Bank of the United States and instead deposits them into banks directed by democratic bankers.

This causes the Rothschilds to panic and so they do what they do best, contract the money supply causing a depression. President Jackson knows what they are up to and later states,

“You are a den of thieves vipers, and I intend to rout you out, and by the Eternal God, I will rout you out.”

1834: The Italian revolutionary leader, Guiseppe Mazzini, is selected by the Illuminati to direct their revolutionary program throughout the world and would serve in that capacity until he died in 1872.

1835: On January 30, an assassin tries to shoot President Jackson, but miraculously both of the assassin’s pistols misfired. President Jackson would later claim that he knew the Rothschilds were responsible for that attempted assassination. He is not the only one, the assassin, Richard Lawrence, who was found not guilty by reason of insanity, later bragged that powerful people in Europe had hired him and promised to protect him if he were caught.

The Rothschilds acquire the rights in the Almaden quicksilver mines in Spain. This was at the time the biggest concession in the world and as quicksilver was a vital component in the refining of gold or silver this gave the Rothschilds a virtual world monopoly.

1836: Following his years of fighting against the Rothschilds and their central bank in America, President Andrew Jackson finally succeeds in throwing the Rothschilds central bank out of America, when the bank’s charter is not renewed. It would not be until 1913 that the Rothschilds would be able to set up their third central bank in America, the Federal Reserve, and to ensure no mistakes are made, this time they will put one of their own bloodline, Jacob Schiff, in charge of the project.

Nathan Mayer Rothschild dies and the control of his bank, N. M. Rothschild & Sons is passed on to his younger brother, James Mayer Rothschild.

1837: The Rothschilds send one of their own, August Belmont, an Ashkenazi Jew, to America to salvage their banking interests defeated by President Andrew Jackson.

1840: The Rothschilds become the Bank of England’s bullion brokers. They set up agencies in California and Australia.

1841: President John Tyler (the 10th President of the United States From 1841 to 1845) vetoed the act to renew the charter for the Bank of the United States. He goes on to receive hundreds of letters threatening him with assassination.

1844: Salomon Mayer Rothschild purchases the United Coal Mines of Votkovice and Austro-Hungarian Blast Furnace Company that would go on to be one of the top ten global industrial concerns.

Benjamin Disraeli, an Ashkenazi Jew (who would go on to become British Prime Minister twice – the only admitted Ashkenazi Jew to do so) publishes Coningsby, in which he characterises Nathan Mayer Rothschild as,

“the Lord and Master of the money markets of the world, and of course virtually Lord and Master of everything else. He literally held the revenues of Southern Italy in pawn, and Monarchs and Ministers of all countries courted his advice and were guided by his suggestions.”

1845: The Great American Patriot, Andrew Jackson (7th President of the United States) dies.

Before his death he is asked what he regarded his as greatest achievement. He replies without hesitation,

“I Killed The Bank,”

This is in reference to the fact he banished the Rothschilds Second Bank of the United States in 1836.

Jacob (James) Mayer Rothschild (who by now had married his niece, Betty, Salomon Mayer Rothschild’s daughter), now known as Baron James de Rothschild, wins the contract to build the first major railway line across the country.

This was called the Chemin De Fer Du Nord and ran initially from Paris to Valenciennes and then joined with the Austrian rail network built by his brother (and wife’s father – all sounds a bit sordid doesn’t it) Salomon Mayer Rothschild.

1847: Lionel De Rothschild now married to the daughter of his uncle, Kalmann (Carl) Mayer Rothschild, is elected to the parliamentary seat for the City of London.

A requirement for entering parliament was to take an oath in the true faith of a Christian. Lionel De Rothschild refused to do this as he was Jewish and his seat in parliament remained empty for 11 years until new oaths were allowed. He must have been an invaluable representative for his constituency, bearing in mind he could never vote on any bill as he never entered parliament! I wonder how he managed to keep his parliamentary seat for 11 years?

1848: Karl Marx, an Ashkenazi Jew, publishes, “The Communist Manifesto.” Interestingly at the same time as he is working on this, Karl Ritter of Frankfurt University was writing the antithesis which would form the basis for Freidrich Wilhelm Nietzsche’s, “Nietzscheanism.” This Nietzecheanism was later developed into Fascism and then into Nazism and was used to forment the first and second world wars.

Marx, Ritter, and Nietzsche were all funded and under the instruction of the Rothschilds. The idea was that those who direct the overall conspiracy could use the differences in those two so-called ideologies to enable them to divide larger and larger factions of the human race into opposing camps so that they could be armed and then brainwashed into fighting and destroying each other, and particularly, to destroy all political and religious institutions. The same plan put forward by Weishaupt in 1776.

Eva Hanau, Amschel Mayer Rothschild’s wife dies.

1849: Gutle Schnaper, Mayer Amschel Rothschild’s wife dies. Before her death she would nonchalantly state,

“If my sons did not want wars, there would be none.”

1850: Construction begins this decade on the manor houses of Mentmore in England and Ferrieres in France, more Rothschilds Manors will follow throughout the world, all of them filled with works of art.

Jacob (James) Rothschild in France is said to be worth 600 million francs, which at the time was 150 million francs more than all the other bankers in France put together.

1852: N.M. Rothschild & Sons begins refining gold and silver for the Royal Mint and the Bank of England and other international customers.

1853: Nathaniel de Rothschild, the son in law of Jacob (James) Mayer Rothschild, purchases Ch�teau Brane Mouton, the Bordeaux vineyard of Mouton, and renames it Ch�teau Mouton Rothschild.

1854: Caroline Stern, Salomon Mayer Rothschild�s wife, dies.

1855: Amschel Mayer Rothschild dies.

Salomon Mayer Rothschild dies.

Kalmann (Carl) Mayer Rothschild dies.

1858: Lionel De Rothschild finally takes his seat in parliament when the requirement to take an oath in the true faith of a Christian is broadened to include other oaths. He becomes the first Jewish member of the British parliament.

1861: President Abraham Lincoln (16th President of the United States from 1860 till his assassination in 1865) approaches the big banks in New York to try to obtain loans to support the ongoing American civil war. As these large banks were heavily under the influence of the Rothschilds, they offer him a deal they know he cannot accept, 24% to 36% interest on all monies loaned.

Lincoln is very angry about this high level of interest and so he prints his own debt free money and informs the public that this is now legal tender for both public and private debts.

1862: By April $449,338,902 worth of Lincoln�s debt free money has been printed and distributed. He states of this,

�We gave the people of this republic the greatest blessing they ever had, their own paper money to pay their own debts.�

That same year The Times of London publishes a story containing the following statement,

“If that mischievous financial policy, which had its origin 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 debts and be without a debt. It will have all the money necessary to carry on its commerce.

It will become prosperous beyond precedent in the history of 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.”

1863: President Abraham Lincoln discovers the Tsar of Russia, Alexander II (1855 � 1881), was having problems with the Rothschilds as well as he was refusing their continual attempts to set up a central bank in Russia. The Tsar then gives President Lincoln some unexpected help.

The Tsar issued orders that if either England or France actively intervened in the American Civil War, and help the South, Russia would consider such action a declaration of war, and take the side of President Lincoln. To show that he wasn’t messing about, he sent part of his Pacific Fleet to port in San Francisco and another part to New York.

The Rothschild banking house in Naples, Italy, C. M. de Rothschild e figli, closes following the unification of Italy. The Rothschilds use one of their own in America, John D. Rockefeller, to form an oil business called Standard Oil which eventually takes over all of its competition.

1864: Rothschild, August Belmont, who by now is the Democratic Party’s National Chairman, supports General George McClellan as the Democratic nominee to run against President Abraham Lincoln in this year’s election. Much to the anger of Belmont, President Lincoln wins the election.

1865: In a statement to Congress, President Abraham Lincoln states,

“I have two great enemies, the Southern Army in front of me, and the financial institutions in the rear. Of the two, the one in my rear is my greatest foe.”

Later that year, on April 14, President Lincoln is assassinated, less than two months before the end of the American Civil War.

Following a brief training period in the Rothschilds London Bank, Jacob Schiff, a Rothschild, born in their house in Frankfurt, arrives in America at the age of 18, with instructions and the finance necessary to buy into a banking house there. The purpose of this was to carry out the following tasks.

1. Gain control of America’s money system through the establishment of a central bank.
2. Find desirable men, who for a price, would be willing to serve as stooges for the Illuminati and promote them into high places in the federal government, the Congress, Supreme Court, and all the federal agencies.
3. Create minority group strife throughout the nations, particularly targeting the whites and blacks.
4. Create a movement to destroy religion in the United States, with Christianity as the main target.

Nathaniel de Rothschild becomes Member of Parliament for Aylesbury in Buckinghamshire.

1868: Jacob (James) Mayer Rothschild dies, shortly after purchasing Ch�teau Lafite, one of the four great premier grand cru estates of France. He is the last of Mayer Amschel Rothschild�s sons to die.

1870: Nathaniel de Rothschild dies.

1871: An American General named, Albert Pike, who had been enticed into the Illuminati by Guissepe Mazzini, completes his military blueprint for three world wars and various revolutions throughout the world, culminating into moving this great conspiracy into its final stage.

The first world war is to be fought for the purpose of destroying the Tsar in Russia,as promised by Nathan Mayer Rothschild in 1815. The Tsar is to be replaced with communism which is to be used to attack religions, predominantly Christianity. The differences between the British and German empires are to be used to forment this war.

The second world war is to be used to forment the controversy between facism and political zionism with the slaughter of Jews in Germany a lynchpin in bringing hatred against the German people. This is designed to destroy fascism (which the Rothschilds created) and increase the power of political zionism. This war is also designed to increase the power of communism to the level that it equalled that of united Christendom.

The third world war is to be played out by stirring up hatred of the Muslim world for the purposes of playing the Islamic world and the political zionists off against one another. Whilst this is going on, the remaining nations would be forced to fight themselves into a state of mental, physical, spiritual and economic exhaustion.

On August 15th of this year, Albert Pike writes a letter (now catalogued in the British Museum) to Guiseppe Mazzini in which he states the following,

“We shall unleash the nihilists and the atheists and we shall provoke a great social cataclysm which in all its horror will show clearly to all nations the effect of absolute atheism; the origins of savagery and of most bloody turmoil.

Then everywhere, the people will be forced to defend themselves against the world minority of the world revolutionaries and will exterminate those destroyers of civilization and the multitudes disillusioned with Christianity whose spirits will be from that moment without direction and leadership and anxious for an ideal, but without knowledge where to send its adoration, will receive the true light through the universal manifestation of the pure doctrine of Lucifer brought finally out into public view.

A manifestation which will result from a general reactionary movement which will follow the destruction of Christianity and Atheism; both conquered and exterminated at the same time.”

Pike, who having been elected as Sovereign Grand Commander of the Scottish Rite of Freemasonry’s Southern Jurisdiction in 1859, was the most powerful Freemason in America. He would retain that post for 32 years until his death in 1891. He also published a book on the subject in 1872 entitled, “Morals and Dogma of the Ancient and Accepted Scottish Rite of Freemasonry,” in which he candidly states the following,

“LUCIFER, the Light-bearer! Strange and mysterious name to give to the Spirit of Darknesss! Lucifer, the Son of the Morning! Is it he who bears the Light, and with its splendors intolerable blinds feeble, sensual or selfish Souls? Doubt it not!”

1872: Prior to Guiseppe Mazzini’s death this year, he makes another revolutionary leader named Adrian Lemmy his successor. Lemmy will be subsequently succeeded by Lenin and Trotsky, then by Stalin. The revolutionary activities of all these men are financed by the Rothschilds.

1873: The loss making Rio Tinto copper mines in Spain, are purchased by a group of foreign financiers including the Rothschilds. These mines represented Europe�s largest source of copper.

1875: On January 1 of this year Jacob Schiff, now Solomon Loeb’s son-in-law after marrying his daughter, Teresa, takes control of the banking house, Kuhn, Loeb & Co. He goes on to finance John D. Rockefeller’s Standard Oil Company, Edward R. Harriman’s Railroad Empire, and Andrew Carnegie’s Steel Empire. This is all with Rothschild money.

He then identifies the other largest bankers in America at that time. They are, J.P. Morgan who controls Wall Street, and the Drexels and the Biddles of Philadelphia. All the other financiers, big and little, danced to the music of those three houses. Schiff then gets the European Rothschilds to set up European branches of these three large banks on the understanding that Schiff, and therefore Rothschild, is to be the boss of banking in New York and therefore America.

N M Rothschild & Sons undertake a share issue to raise capital for the first channel tunnel project to link France to England, with half of its capital coming from the Rothschild owned Compagnie du Chemin de Fer du Nord.

This year Lionel De Rothschild also loans Prime Minister Benjamin Disraeli the finance for the British government to purchase the shares in the Suez Canal, from Khedive Said of Egypt. This was done as the Rothschilds needed this access route to be held by a government they controlled, so they could use that government’s military to protect their huge business interests in the Middle East.

1876: Otto von Bismarck states,

“The division of the United States into two federations of equal force was decided long before the civil war by the high financial power of Europe. These bankers were afraid that the United States, if they remained in one block and as one nation, would attain economical and financial independence, which would upset their financial domination over the world.

The voice of the Rothschilds predominated. They foresaw the tremendous booty if they could substitute two feeble democracies, indebted to the financiers, to the vigorous Republic, confident and self-providing.

Therefore they started their emissaries in order to exploit the question of slavery and thus dig an abyss between the two parts of the Republic.”

1879: Lionel de Rothschild dies.

1880: Rothschild agents begin formenting a series of pogroms predominantly in Russia, but also in Poland, Bulgaria and Romania. These pogroms resulted in the slaughter of thousands of innocent Jews, causing approximately 2 million to flee, mainly to New York, but also to Chicago, Philadelphia, Boston and Los Angeles.

The reason these pogroms were initiated, was to create a large Jewish base in America, who when they arrived, would be educated to register as Democrat voters. Some twenty years later, this would result in in a massive Democratic power base in the United States and be used to elect Rothschild front men such as Woodrow Wilson, to the Presidency, to carry out the bidding of the Rothschilds.

1881: President James A. Garfield (The 20th President of the United States who lasted only 100 Days) states two weeks before he is assassinated,

�Whoever controls the volume of money in our country is absolute master of all industry and commerce�and when you realize that the entire system is very easily controlled, one way or another, by a few powerful men at the top, you will not have to be told how periods of inflation and depression originate.�

Edmond James de Rothschild has a son Maurice de Rothschild.

1883: After 6,000 feet of tunnel in the channel tunnel project being excavated, the British government halt the project citing the fact that it would be a threat to Britain�s security.

1885: Nathaniel Rothschild, son of Lionel De Rothschild, becomes the first Jewish peer and is takes the title of Lord Rothschild.

1886: The French Rothschild bank, de Rothschild Fr�res obtains substantial amounts of Russia’s oil fields and forms the Caspian and Black Sea Petroleum Company, which quickly becomes the world’s second largest oil producer.

1887: Opium trafficker in China, Edward Albert Sassoon, marries Aline Caroline de Rothschild, the grand-daughter of Jacob (James) Mayer Rothschild. Aline Caroline’s father, Gustave, together with his brother, Alphonse, took over the Rothschild’s french arm following their father Jacob’s death.

The Rothschilds finance the amalgamation of the Kimberley diamond mines in South Africa. They subsequently become the biggest shareholders of this company, De Beers, and mine precious stones in Africa and India.

1888: No�mie Halphen, future wife of Maurice de Rothschild born.

1891: The British Labour Leader makes the following statement on the subject of the Rothschilds,

“This blood-sucking crew has been the cause of untold mischief and misery in Europe during the present century, and has piled up its prodigious wealth chiefly through fomenting wars between States which ought never to have quarrelled.

Whenever there is trouble in Europe, wherever rumours of war circulate and men’s minds are distraught with fear of change and calamity you may be sure that a hook-nosed Rothschild is at his games somewhere near the region of the disturbance.”

Comments like this worry the Rothschilds and towards the end of the 1800′s they purchase Reuters news agency so they can have some control of the media.

1895: Edmond James de Rothschild the youngest son of Jacob (James) Mayer Rothschild visits Palestine and subsequently supplies the funds to found the first Jewish colonies there, this is to further their long term objective of creating a Rothschild owned country.

1897: The Rothschilds found the Zionist Congress to promote Zionism (a political movement with the sole aim of moving all Jews into a singularly Jewish nation state) and arrange its first meeting in Munich. However due to extreme opposition from local Jews, who are quite happy where they are, this meeting has to be moved to Basle, Switzerland and takes place on 29 August. The meeting is chaired by Ashkenazi Jew, Theodor Herzl, who would state in his diaries,

“It is essential that the sufferings of Jews become worse this will assist in realization of our plans I have an excellent idea I shall induce anti-Semites to liquidate Jewish wealth.The anti-Semites will assist us thereby in that they will strengthen the persecution and oppression of Jews. The anti-Semites shall be our best friends.”

Herzl is subsequently elected President of the Zionist Organisation which adopts the, “Rothschild Red Hexagram or Sign,” as the Zionist flag which 51 years later will end up as the flag of Israel.

Edward Henry Harriman becomes a director of the Union Pacific Railroad and goes on to take control of the Southern Pacific Railroad. This is all financed by the Rothschilds.

1898: Ferdinand de Rothschild dies.

1901: The Jews from the colonies set up in Palestine by Edmond James de Rothschild, send a delegation to him which tell him,

“If you wish to save the Yishuv (The Jewish settlement) first take your hands from it, and for once permit the colonists to have the possibility of correcting for themselves what needs correcting.”

Edmond James de Rothschild is very angry about this and states,

“I created the Yishuv, I alone. Therefore no men, neither colonists nor organisations have the right to interfere in my plans.”

The Rothschild banking house in Frankfurt, Germany, M. A. von Rothschild und Sohne, closes as there is no male Rothschild heir to take it on.

1902: Philippe de Rothschild born.

1905: A group of Rothschild backed Zionist Jews led by Georgi Apollonovich Gapon attempt to overthrow the Tsar in Russia in a Communist Coup. They fail and are forced to flee Russia only to be given refuge in Germany.

The Jewish Encyclopaedia (Vol. 2, p.497) states,

“It is a somewhat curious sequel to the attempt to set up a Catholic competitor to the Rothschilds that at the present time the latter are the guardians of the papal treasure.”

1906: The Rothschilds claim that due to growing instability in the region and increasing competition from Rockefeller (the Rockefeller family are Rothschild descendants through a female bloodline) owned Standard Oil, this is why they sell their Caspian and Black Sea Petroleum Company to Royal Dutch and Shell. This is another example of the Rothschilds trying to hide their true wealth.

1907: Rothschild, Jacob Schiff, the head of Kuhn, Loeb and Co., in a speech to the New York Chamber of Commerce, warns that,

“Unless we have a Central Bank with adequate control of credit resources, this country is going to undergo the most severe and far reaching money panic in its history.”

Suddenly America finds itself in the middle of another typical run of the mill Rothschild engineered financial crisis, which ruins as usual ruins the lives of millions of innocent people throughout America and makes billions for the Rothschilds.

1909: Jacob Schiff founds the National Advancement for the Association of the Coloured People (NAACP). This was done to incite black people into roiting, looting and other forms of disorder, in order to cause a rift between the black and white communities. Jewish historian, Howard Sachar, states the following in his book, “A History of the Jews in America,”

“In 1914, Professor Emeritus Joel Spingarn of Columbia University became chairman of the NAACP and recruited for its board such Jewish leaders as Jacob Schiff, Jacob Billikopf, and Rabbi Stephen Wise.”

Other Ashkenazi Jew co-founders included Julius Rosenthal, Lillian Wald and Rabbi Emil G. Hirsch. It was not until 1920 that the NAACP appointed its first black president, James Weldon Johnson.

Maurice de Rothschild marries Ashkenazi Jew, No�mie Halphen.

1911: Werner Sombart, in his book, “The Jews and Modern Capitalism,” stated that from 1820 on, it was the,

“Age of the Rothschild,” and concluded that there was, “Only one power in Europe, and that is Rothschild.”

1912: In the December issue of, “Truth,” magazine, George R. Conroy states of banker Jacob Schiff,

“Mr Schiff is head of the great private banking house of Kuhn, Loeb, and co, which represents the Rothschilds interests on this side of the Atlantic.

He has been described as financial strategist and has been for years the financial minister of the great impersonal power known as Standard Oil.

He was hand in glove with the Harrimans, the Goulds, and the Rockefellers in all their railroad enterprises and has become the dominant power in the railroad and financial power of America.”

1913: On March 4, Woodrow Wilson is elected the 28th President of the United States. Shortly after he is inaugurated, he is visited in the White House by Ashkenazi Jew, Samuel Untermyer, of law firm, Guggenheim, Untermyer, and Marshall, who tries to blackmail him for the sum of $40,000 in relation to an affair Wilson had whilst he was a professor at Princeton University, with a fellow professor’s wife.

President Wilson does not have the money, so Untermyer volunteers to pay the $40,000 out of his own pocket to the woman Wilson had had the affair with, on the condition that Wilson promise to appoint to the first vacancy on the United States Supreme Court a nominee to be recommended to President Wilson by Untermyer. Wilson agrees to this.

Jacob Schiff sets up the Anti Defamation League (ADL) in the United States. This organisation is formed to slander anyone who questions or challenges the Rothschild global conspiracy as, “anti-semitic.”

Strangely enough, the same year that they do this they also set up their last and current central bank in America, the Federal Reserve. Congressman Charles Lindbergh stated following the passing of the Federal Reserve Act on December 23,

“The Act establishes the most gigantic trust on earth. When the President signs this Bill, the invisible government of the monetary power will be legalized…….The greatest crime of the ages is perpetrated by this banking and currency bill.”

It is important to note that the Federal Reserve is a private company, it is neither Federal nor does it have any Reserve. It is conservatively estimated that profits exceed $150 billion per year and the Federal Reserve has never once in its history published accounts.

1914: The start of World War I. In this war, the German Rothschilds loan money to the Germans, the British Rothschilds loan money to the British, and the French Rothschilds loan money to the French.

Futhermore, the Rothschilds have control of the three European news agencies, Wolff (est. 1849) in Germany, Reuters (est. 1851) in England, and Havas (est. 1835) in France.

The Rothschilds use Wolff to manipulate the German people into a fervour for war. From around this time, the Rothschilds are rarely reported in the media, because they own the media.

1916: On June 4, Ashkenazi Jew, Louis Dembitz Brandeis is appointed to the Supreme Court of the United States by President Wilson as per his agreed blackmail payment to Samuel Untermyer some three years earlier. Justice Brandeis is also the elected leader of the Executive Committee for Zionist Affairs, a position he has held since 1914.

The middle of World War II. Germany were winning the war as they were being financed by the Rothschilds to a greater extent than France, Italy and England, because Rothschilds, did not want to support the Tsar in Russia, and of course Russia was on the same side as France, Italy and England.

Then a significant event occurred. Germany, although they were winning the war and not one foreign soldier had set foot on their soil, offered armistice to Britain with no requirement of reparations. The Rothschilds were anxious to make sure this didn’t happen as they were expecting to make far more money off this war, so they played another card they had up their sleeve.

Whilst the British were considering Germany’s offer, Rothschild agent Louis Brandeis sends a Zionist delegation from America to Britain to promise to bring America into the war on the side of the British, provided the British agree to give the land of Palestine to the Rothschilds.

The Rothschilds wanted Palestine for the following reason. They had great business interests in the far east and desired their own state in that area along with their own military which they could use as an aggressor to any state that threatened those interests.

The British subsequently agree to the deal for Palestine and the Zionists in London contact their counterparts in America and inform them of this fact. Suddenly all the major newspapers in America that up to that point had been pro-German turned on Germany running propaganda pieces such as: German soldiers were killing Red Cross Nurses; German soldiers were cutting off babies hands, etc, in order to manipulate the American public against the Germans.

This same year, President Woodrow Wilson, ran a re-election campaign under the slogan, “Re-Elect The Man Who Will Keep Your Sons Out Of The War.”

On December 12, Germany and her allies offer peace terms to end the war.

1917: As a result of Germany’s offer of peace the Rothschild war machine goes into overdrive in America, spreading propaganda which leads to President Wilson under the instructions of American Zionist leader and Supreme Court Justice, Louis Dembitz Brandeis, reneging on his promise to the electorate and taking America into the first world war on April 6.

As per the Rothschild Zionist promise to the British, to take America into the war, they decide they want something in writing from the British to prove that they will uphold their side of the bargain. The British Foreign Secretary, Arthur James Balfour therefore drafts a letter which is commonly known as the, “Balfour Declaration,” which is reprinted below.

Foreign Office

November 2nd, 1917

Dear Lord Rothschild,

I have much pleasure in conveying to you, on behalf of His Majesty’s Government, the following declaration of sympathy with Jewish Zionist aspirations which has been submitted to, and approved by, the Cabinet.

His Majesty’s Government view with favour the establishment in Palestine of a national home for the Jewish people, and will use their best endeavours to facilitate the achievement of this object, it being clearly understood that nothing shall be done which may prejudice the civil and religious rights of existing non-Jewish communities in Palestine, or the rights and political status enjoyed by Jews in any other country.

I should be grateful if you would bring this declaration to the knowledge of the Zionist Federation.

Yours sincerely,

Arthur James Balfour

The Rothschilds order the execution by the Bolsheviks they control, of Tsar Nicholas II and his entire family in Russia, even though the Tsar had already abdicated on March 2. This is both to get control of the country and an act of revenge for Tsar Alexander I blocking their world government plan in 1815 at the Congress Of Vienna, and Tsar Alexander II siding with President Abraham Lincoln in 1864.

It is extremely important for them to slaughter the entire family including women and children in order to make good on the promise to do so made by Nathan Mayer Rothschild in 1815. It is designed to show the world what happens if you ever attempt to cross the Rothschilds.

U.S. Congressman Oscar Callaway informs Congress that J. P. Morgan is a Rothschild front and has taken control of the American media industry. He states,

“In March, 1915, the J.P. Morgan interests, the steel, shipbuilding, and powder interest, and their subsidiary organizations, got together 12 men high up in the newspaper world and employed them to select the most influential newspapers in the United States and sufficient number of them to control generally the policy of the daily press…

…They found it was only necessary to purchase the control of 25 of the greatest papers…An agreement was reached. The policy of the papers was bought, to be paid for by the month, an editor was furnished for each paper to properly supervise and edit information regarding the questions of preparedness, militarism, financial policies, and other things of national and international nature considered vital to the interests of the purchasers.”

1919: In January, Ashkenazi Jews, Karl Liebknecht and Rosa Luxemburg, are killed as they attempt to lead another Rothschild funded Communist coup, this time in Berlin, Germany.

The Versailles peace conference is held to decide reparations that the Germans need to pay to the victors following the end of the first world war. A delegation of 117 Zionists headed up by Ashkenazi Jew, Bernard Baruch, bring up the subject of the promise of Palestine for them. At this point the Germans realised why America had turned on them and under whose influence, the Rothschilds.

The Germans, naturally, felt they had been betrayed by the Zionists. This is because, at the time the Rothschilds made their deal with Britain for Palestine, in exchange for bringing America into the war, Germany was the most friendly country in the world towards the Jews, indeed the German Emancipation Edict of 1822 guaranteed Jews in Germany all civil rights enjoyed by Germans.

Also, Germany was the only country in Europe which did not place restrictions on Jews, even giving them refuge when they had to flee from Russia after their first attempted Communist coup failed there in 1905.

Nevertheless, the Rothschilds had held up their side of the bargain to spill the blood of millions of innocents and as a result, Palestine is confirmed as a Jewish homeland, and whilst its handover to the Rothschilds takes place it is to remain under the control of Britain as the Rothschilds control Britain. At that time less than one percent of the population of Palestine was Jewish. Interestingly, the host of the Versailles peace conference is its boss, Baron Edmond de Rothschild.

The Versailles peace conference is also used as an attempt by the Rothschilds to set up a world government under the pretext of ending all wars (which they create). This was called the, “League of Nations.” Fortunately not enough countries accepted it and so it soon died.

On March 29th The Times of London reports on the Bolsheviks in Russia,

“One of the curious features of the Bolshevist movement is the high percentage of non Russian elements among its leaders. Of the twenty or thirty commissaries, or leaders, who provide the central machinery of the Bolshevist movement, not less than 75% were Jews.”

It is reported that the Rothschilds were angry with the Russians because they were not prepared to allow them to form a central bank within their nation. They therefore gathered groups of Jewish spies and sent them into Russia to drum up a revolution for the benefit of the common man, which was actually a takeover of Russia by a Rothschild controlled satanic elite.

These Jewish spies were, in age old deceptive Ashkenazi tradition, given Russian names, for example Trotsky was a member of the first group and his original name was Bronstein. These groups were sent to areas throughout Russia to incite riots and rebellion.

The Jewish Post International Edition, week ending January 24th 1991, confirms Vladimir Lenin was Jewish. Lenin is also on record as having stated,

The establishment of a central bank is 90% of communizing a nation.

These Jewish, Rothschild funded Bolsheviks would go on in the course of history to slaughter 60 million Christians and Non-Jews in Soviet controlled territory. Indeed the author Aleksandr Solzhenitsyn in his work, ‘Gulag Archipelago, Vol 2,’ affirms that Zionist Jews created and administered the organized Soviet concentration camp system in which these tens of millions of Christians and Non-Jews died.

On page 79 of this book he even names the administrators of this the greatest killing machine in the history of the world. They are Aron Solts, Yakov Rappoport, Lazar Kogan, Matvei Berman, Genrikh Yagoda, and Naftaly Frenkel. All six are Zionist Jews. In 1970 Solzhenitsyn would be awarded the Nobel Peace Prize for literature.

N. M. Rothschild & Sons are given a permanent role to fix the world’s daily gold price. This takes place in the City of London offices, daily at 1100 hours, in the same room until 2004.

1920: Winston Churchill (whose mother, Jenny (Jacobson) Jerome, was Jewish meaning he is Jewish under Ashkenazi law as he was born of a Jewish mother) writes in an article in the Illustrated Sunday Herald, dated February 8th,

“From the days of Illuminati leader Weishaupt, to those of Karl Marx, to those of Trotsky, this worldwide conspiracy has been steadily growing.

And now at last this band of extraordinary personalities from the underworld of the great cities of Europe and America, have gripped the Russian people by the hair of their heads and become the undisputed masters of that enormous empire.”

1921: Under the orders of Jacob Schiff the Council on Foreign Relations (CFR) is founded by Ashkenazi Jews, Bernard Baruch and Colonel Edward Mandell House. Schiff gave his orders prior to his death in 1920, as he knew an organisation in America needed to be set up to select politicians to carry on the Rothschild conspiracy,and the formation of the CFR was actually agreed in a meeting on May 30, 1919 at the Hotel Majestic in Paris, France.

The CFR membership at the start was approximately 1000 people in the United States. This membership included the heads of virtually every industrial empire in America, all the American based international bankers, and the heads of all their tax free foundations. In essence all those people who would provide the capital required for anyone who wished to run for Congress, the Senate or the Presidency.

The first job of the CFR was to gain control of the press. This task was given to John D. Rockefeller who set up a number of national news magazines such as Life, and Time. He financed Samuel Newhouse to buy up and establish a chain of newspapers all across the country, and Eugene Meyer also who would go on to buy up many publications such as the Washington Post, Newsweek, ant The Weekly Magazine.

The CFR also needed to gate control of radio, television and the motion picture industry. This task was split amongst the international bankers from, Kuhn Loeb, Goldman Sachs, the Warburgs, and the Lehmanns.

1925: This year’s Jewish Encyclopaedia, states of the existence of Ashkenazi Jews (who represent approximately 90% of so-called world Jewry), with the startling admission that the so called enemy of the Jews, Esau (also known as Edom, see Genesis 36:1), now actually represents the Jewish race, when on page 42 of Volume V it is stated,

“Edom is in modern Jewry.”

So what they’re basically saying is that these Ashkenazi Jews, who represent 90% of the so-called Jewish population, are actually gentiles or goyim themselves.

1926: N. M. Rothschild & Sons refinance the Underground Electric Railways Company of London Ltd which has a controlling interest in the entire London Underground transport system.

Maurice de Rothschild has a son, Edmond de Rothschild.

1929: The Rothschilds crash the United States economy by contracting the money supply.

1930: The first Rothschild world bank, the, “Bank for International Settlements (BIS),” is established in Basle, Switzerland. The same place as where 33 years earlier the first ever World Zionist Congress was held.

1933: On January 30, Adolf Hitler becomes Chancellor of Germany. He drives Jews, many of which were Communist out of Governmental positions within Germany. As a result of this, in July, the Jews hold a World Conference in Amsterdam during which they demand that Hitler re-instate every Jew back to his former position.

Hitler refuses and as a result of this, Samuel Untermyer, the Ashkenazi Jew who blackmailed President Wilson,and is now the head of the American delegation and the president of the whole conference, returns to the United States, and makes a speech on radio which was transcribed in the From the New York Times, Monday, August 7, 1933. In the speech he made the following statements,

“…the Jews are the aristocrats of the world…Our campaign is…the economic boycott against all German goods, shipping and services…What we are proposing…is to prosecute a purely defensive economic boycott that will undermine the Hitler regime and bring the German people to their senses by destroying their export trade on which their very existence depends…

…Each of you, Jew and Gentile alike…must refuse to deal with any merchant or shopkeeper who sells any German-made goods or who patronizes German ships or shipping.”

As two thirds of Germany’s food supply had to be imported, and could only be imported with the proceeds of what they exported, if Germany could not export, two thirds of Germany’s population would starve, as there would be not enough food for more than one third of the population.

As a result of this boycott, Jews throughout America, would protest outside and damage any stores in which they found any products with, “Made in Germany,” printed on them, causing stores to have to dump these products or risk bankruptcy.

Once the effects of this boycott began to be felt in Germany, the Germans, who had demonstrated no violence towards the Jews up to this point, simply began boycotting Jewish stores in the same way the Jews had done to stores selling German products in America.

Rothschild financed IBM, supply machines to the Nazis which produce punch cards to help organize and manage the initial identification and social expulsion of Jews, the confiscation of their property and their extermination.

On November 16, President Roosevelt recognizes the Zionist regime of Stalin in Russia without consultation with Congress even as 8,000 Ukrainians march in protest in New York.

Also this year, President Roosevelt, born of a Jewish mother, therefore satisfying Ashkenazi rules of being Jewish, orders the all-seeing eye to be placed upon all new dollar bills along with the motto, “Novus Ordo Seclorum.” This is latin for, “A New Order of the Ages.”

1934: Swiss banking secrecy laws are reformed and it becomes an offence resulting in imprisonment for any bank employee to violate bank secrecy. This is all in preparation for the Rothschild engineered Second World War in which as usual they will fund both sides.

Edmond de Rothschild dies.

1936: With regard to the increase in anti-semitism in Germany, Samuel Landman (at the time, secretary to the World Zionist Organisation), in his 1936 book, Great Britain, The Jews, and Palestine states the following of the United States entry into World War 1,

“The fact that it was Jewish help that brought USA into the War on the side of the Allies has rankled ever since in German especially Nazi minds, and has contributed in no small measure to the prominence which anti-Semitism occupies in the Nazi programme.”

1938: On 7th November, a Jew, Herschel Grynszpan, assassinated Ernst vom Rath, a minor official at the German Embassy in Paris. As a result of this German hostility towards Jews in Germany started to turn violent.

The Rothschilds Austrian banking house in Vienna, S. M. von Rothschild und Sohne, closes following the Nazi occupation of Austria.

1939: I.G. Farben the leading producer of chemicals in the world and largest German producer of steel dramatically increases its production. This increased production is almost exclusively used to arm Germany for the Second World War. This company was controlled by the Rothschilds and would go on to use Jews and other disaffected peoples as slave labour in the concentration camps. I.G. Farben also created the lethal Zyklon B gas that was used to exterminate the Jews.

On 1 September, the Second world war starts when Germany invades Poland. This was because the German leadership were a Christian leadership, who understood that Soviet Russia was led by Rothschild funded Communists, and they feared that as the Soviet Union grew in strength, these Jewish Communists would invade and wipe all the Christians off the map.

1940: Hansjurgen Koehler in his book, “Inside The Gestapo,” states the following, of Maria Anna Schicklgruber, Adolf Hitler’s grandmother,

“A little servant girl came to Vienna and became a domestic servant at the Rothschild mansion and Hitler’s unknown grandfather must be probably looked for in this magnificent house.”

This is backed up by Walter Langer in his book, “The Mind Of Hitler,” in which he states,

“Adolf’s father, Alois Hitler, was the illegitimate son of Maria Anna Schicklgruber’.Maria Anna Schicklgruber was living in Vienna at the time she conceived. At that time she was employed as a servant in the home of Baron Rothschild. As soon as the family discovered her pregnancy she was sent back home.where Alois was born.”

On the surface, it would appear Hitler was unlikely to be a Rothschild, but then again, when you discover the benefits that the Rothschilds got out of this war, both financially and politically, a Rothschild connection does not appear as outlandish as it may initially seem.

1941: President Roosevelt takes America into the second world war by refusing to sell Japan any more steel scrap or oil. Japan was in the midst of a war against China and without that scrap steel and oil, Japan would be unable to continue that war. Japan was totally dependent upon the United States for both steel scrap and oil. Roosevelt knew this action would provoke the Japanese to attack America, which they subsequently did at Pearl Harbor.

1942: Prescott Bush, father of future American Presidents’ George Herbert Walker and George W, has his company seized under the, ‘Trading With The Enemy,’ Act. He was funding Hitler from America, whilst American soldiers were being killed by German soldiers.

Jews are also being slaughtered by these same soldiers. Interestingly the ADL never criticizes any of the Bushes for this.

1943: February 18th, Zionist, Izaak Greenbaum, head of the Jewish Agency Rescue Committee, in a speech to the Zionist Executive Council states,

If I am asked, could you give from the UJA (United Jewish Appeal) monies to rescue Jews, I say, no and I say again no!

He would go onto state,

One cow in Palestine is worth more than all the Jews in Poland!

This is not a surprise, the whole idea of Zionist support for the slaughter of innocent Jews was to scare the survivors into believing that their only place of safety was Israel. How else do you think the Zionists could ensure Jews leave the beautiful European cities in which they live, in order to settle in a desert!

1944: On 6 November Lord Moyne, British Minister Resident in the Middle East was assassinated in Cairo by two members of the Jewish terrorist group, the Stern Gang, led by future Prime Minister of Israel, Yitzhak Shamir. He is also responsible for an assassination attempt against Harold MacMichael, the High Commissioner of the British Mandate of Palestine, this same year.

Interestingly he also masterminds another successful assassination this year against the United Nations representative in the Middle East, Count Folke Bernadotte who, although he had secured the release of 21,000 prisoners from German camps during World War II, was seen by Yitzak Shamir and his terrorist collaborators as an anti-Zionist.

In Bretton Woods, New Hampshire, two further Rothschild world banks are created. The International Monetary Fund (IMF), and the World Bank.

1945: The end of the Second World War. It is reported that I.G. Farben plants were specifically not targeted in the bombing raids on Germany. Interestingly at the end of the war, they were found to have only sustained 15% damage.

The tribunals held at the end of the Second World War, to investigate Nazi War Crimes, censored any materials recording Western assistance to Hitler.

The Rothschilds take a giant step towards their goal of world domination when the second, “League of Nations,” called the, “United Nations,” was approved this year.

1946: On July 22 the future Prime Minister of Israel, Ashkenazi Jew, David Ben-Gurion, orders another future Prime Minister of Israel, Ashkenazi Jew, Menachem Begin, to carry out a terrorist attack on the King David Hotel in Palestine, to try and drive out the British. As a result of this 91 people were killed, most of them civilians: 28 British, 41 Arabs, 17 Jews, and 5 others. Around 45 people are injured.

Menachem Begin went on to proudly proclaimed himself as, “the father of modern terrorism.” Just to put the gravity of the attack on the King David Hotel into perspective, it was at the time the biggest death toll as a result of single terrorist action ever and was only surpassed over forty years later by the Bombing of Pan Am flight 103 over Lockerbie.

1947: The British who prior to World War 2 declared that there would be no more immigration of Jews to Palestine in order to protect the Palestinians from their acts of terror against both them and British soldiers, transfer control of Palestine to the United Nations. The United Nations resolve to have Palestine partitioned into two states, one zionist and one arab, with Jerusalem to remain as an international zone to be enjoyed by all religious faiths.

This transfer was scheduled to take place on May 15, 1948. The United Nations had no right to give Arab property to anyone, as indeed even thought the Jews owned 6% of Palestine at that time, resolution 181 granted the Jews 57% of the land leaving the Arabs who at that time had 94% with only 43%.

Information collected by the ADL in its spy operations on US citizens is used by the House Select Committee on Unamerican Activities. Subcommittee Chair Clare Hoffman dismisses the ADL’s reports on suspected communists as “hearsay.”

1948: In the Spring of this year, the Rothschilds bribe President Harry S. Truman (33rd President of the United States 1945 – 1953) to recognise Israel (Rothschild owned Zionist not Jewish territory) as a sovereign state with $2,000,000 which they give to him on his campaign train.

They then declare Israel to be a sovereign Jewish state in Palestine and within half an hour President Truman declared the United States to be the first foreign nation to recognise it.

The Flag of Israel is unveiled. Despite tremendous opposition the emblem on the flag is a blue coloured version of the Rothschild, “Red Hexagram or Sign.”

This angers many Jews who realise this Hexagram was used in the ancient mystery religions as the symbol of, “Moloch,” (described as a demon of unwilling sacrifice and is also interestingly the name of the stone owl the elite worship at Bohemian Grove), and, “Astaroth,” (described as the Lord Treasurer of Hell).

The Hexagram was also used to represent Saturn, which has been identified as the esoteric name for, “Satan.” This indicates that anyone killed in the name of Israel is actually a sacrifice to Satan. These dissenting Jews believe the, “Menorah,” the oldest Jewish symbol should be used and pointed out that the Hexagram is not even a Jewish symbol, but of course as the Rothschild Zionists use it that is what ends up on the Rothschild, I mean Zionist, I mean Israeli flag.

In the early hours of April 19, 132 Jewish terrorists from the Irgun gang, led by future Israeli Prime Minister Menachem Begin, and the Stern gang, led by future Israeli Prime Minister Yitzhak Shamir, brutally massacre 200 men, women and children as they are sleeping peacefully in the Arab village of Deir Yassin.

Following the United Nations transfer of Palestine to an independent Jewish state and an independent Arab state on May 15, the Israelis launched a military assault on the Arabs with blaring loudspeakers on their trucks informing the Arabs that if they did not flee immediately, they would be slaughtered.

800,000 Arabs with the recent memory of the Deir Yassin massacre at the forefront of their minds, fled in panic. They asked for help from nighbouring Arab states, but those states did not get involved as they were no match for the Israelis whose up to date military hardware had been supplied by the Jewish Stalinist regime in Russia. Following this assault, the Jews now controlled 78% of the former Palestine as oppose to the 57% that had been given to them illegally by the United Nations.

The Palestinians, many of them Christians, were never paid compensation for their homes, property and businesses stolen from them during this illegal Jewish assault, and these people ended up in slum refugee cities of tents. Futhermore at least half of the Palestinians in their hurry to flee, left their birth certificates behind. The State of Israel then passed a law that only those who could prove citizenship were allowed to return to Israel, thus meaning these 400,000 Palestinians could not return and lost all their property they had left there.

Ashkenazi Jew, David Ben-Gurion, one of the father founders of Israel and its first Prime Minister, candidly describes Zionist aims in his diary (21 May 1948) as follows,

The Achilles heel of the Arab coalition is the Lebanon. Muslim supremacy in this country is artificial and can easily be overthrown. A Christian State ought to be set up there, with its southern frontier on the river Litani.

We would sign a treaty of alliance with this State. Thus when we have broken the strength of the Arab Legion and bombed Amman, we could wipe out Trans-Jordan, after that Syria would fall. And if Egypt still dared to make war on us, we would bomb Port Said, Alexandria and Cairo.

We should thus end the war and would have but paid to Egypt, Assyria and Chaldea on behalf of our ancestors.

1949: On October 1, Mao Tse Tsung declares the founding of the People’s Republic Of China in Tiananmen Square, Beijing. He is funded by Rothschild created Communism in Russia and also the following Rothschild agents: Solomon Adler, a former United States Treasury official who was a Soviet Spy; Israel Epstein, the son of a Jewish Bolshevik imprisoned by the Tsar in Russia for trying to forment a revolution there; and Frank Coe, a leading official of the Rothschild owned IMF.

1950: Israel passes their law of return, guaranteeing every Jew worldwide the right to dwell in the state of Israel, however the Palestinians even though they had lived there for 1300 years, were denied that right.

John Davitt, former chief of the Justice Department’s internal security section notes that the Israeli intelligence service is the second most active in the United States after the Soviets and of course both Israel and the Soviet Union are run by an Ashkenazi Jewish leadership.

1951: On 1 April the Israeli Secret Intelligence Agency the Mossad, which will go on to terrorize the world, is formed. The motto of the Mossad is probably the most disgusting secret service motto in the world, it is,
“By Way Of Deception,
Thou Shalt Do War.”

1953: N. M. Rothschild & Sons found the British Newfoundland Corporation Limited to develop 60,000 square miles of land in Newfoundland, Canada, which comprised a power station to harness the power of the Hamilton (later renamed Churchill) Falls. At the time this was the largest construction project ever to be undertaken by a private company.

1954: “The Lavon Affair.” Israeli agents recruit Egyptian citizens of Jewish descent to bomb Western targets in Egypt, and plant evidence to frame Arabs, in an apparent attempt to upset American/Egyptian relations. Israeli defense minister, Ashkenazi Jew, Pinhas Lavon is eventually removed from office, though many think real responsibility lay with David Ben-Gurion.

A hidden microphone planted by the Israelis is discovered in the Office of the US Ambassador in Tel Aviv.

1955: Edmond de Rothschild founds Compagnie Financiere, Paris.

1956: Telephone taps are found connected to two telephones in the residence of the US military attache in Tel Aviv.

1957: James de Rothschild dies and it is reported (by the Rothschild owned media) that he bequeaths a large sum of money to the state of Israel to pay for the construction of their parliament building, the Knesset. He states that the Knesset should be,

“a symbol, in the eyes of all men, of the permanence of the State of Israel.”

On page 219 of his book, “Tales of the British Aristocracy,” L.G. Pine, the Editor of Burke’s Peerage, states that the Jews,

“have made themselves so closely connected with the British peerage that the two classes are unlikely to suffer loss which is not mutual. So closely linked are the Jews and the lords that a blow against the Jews in this country would not be possible without injuring the aristocracy also.”

Maurice de Rothschild dies in Paris.

1962: de Rothschild Freres establishes Imetal as an umbrella company for all their mineral mining interests.

Frederic Morton publishes his book, The Rothschilds, in which he states,

“Though they control scores of industrial, commercial, mining and tourist corporations, not one bears the name Rothschild. Being private partnerships, the family houses never need to, and never do, publish a single public balance sheet, or any other report of their financial condition.”

This attitude reveals the true aim of the Rothschilds, to eliminate all competition and create their own worldwide monopoly.

1963: On June 4th President John F. Kennedy (the 35th President of the United States 1961 – 1963) signs Executive Order 11110 which returned to the U.S. government the power to issue currency, without going through the Rosthchilds owned Federal Reserve.

Less than 6 months later on November 22nd , president Kennedy is assassinated by the Rothschilds for the same reason as they assassinated President Abraham Lincoln in 1865, he wanted to print American money for the American people, as oppose to for the benefit of a money grabbing war mongering foreign elite.

This Executive Order 11110, is rescinded by President Lyndon Baines Johnson (the 36th President of the United States 1963 to 1969) on Air Force One from Dallas to Washington, the same day as President Kennedy was assassinated.

Another, and probably the primary, reason for Kennedy’s assassination is however, the fact that he made it quite clear to Israeli Prime Minister, David Ben-Gurion, that under no circumstances would he agree to Israel becoming a nuclear state. The Israeli newspaper Ha’aretz on February 5, 1999, in a review of, Avner Cohen’s book, “Israel and the Bomb,” states the following,

“The murder of American President John F. Kennedy brought to an abrupt end the massive pressure being applied by the U.S. administration on the government of Israel to discontinue the nuclear program…The book implied that, had Kennedy remained alive, it is doubtful whether Israel would today have a nuclear option.”

Edmond de Rothschild establishes La Compagnie Financiere Edmond de Rothschild (LCF), in Switzerland as a venture capital house. This later develops into an investment bank and asset management company with many affiliates. He also marries his wife Nadine and they have a son, Benjamin de Rothschild.

1965: Israel illegally obtains enriched uranium from NUMEC (Nuclear Materials and Equipment Corporation).

1967: The treatment of the Palestinians by the Zionist Jews, finally ignites enough anger in the Arab world for Egypt, Jordan and Syria to mobilise on Israel’s borders. All of these three countries are suddenly attacked by Israel and as a result the Sinai which included Gaza was stolen from Egypt, and the West Bank and the Jordan River stolen from Jordan.

As a result of this, on June 8, the Israelis launch an attack on the USS Liberty with Israeli aircraft and motor torpedo boats, in an effort to blame it on Egypt, to bring America into the war on their side, and of course follow to the letter, their Mossad motto,
“By Way Of Deception,
Thou Shalt Do War.”

As a result of their attack, 34 American servicemen were killed and 174 wounded. Israel lies as usual, claiming it mistook this warship that was flying a large United States flag, for an ancient out-of-service Egyptian horse carrier El Quseir, that was 180 feet shorter. They also claim the ship was in the war zone, when it was actually in international waters, far from any fighting. The Israeli’s attack on this warship lasts for 75 minutes during which time they shoot up one of the United States flags, resulting in the sailors desperately raising another one.

In the aftermath of this attack, the American sailors who survived are warned by the United States military not to discuss the matter with anyone due to, “national security.” This story gets no prominence in the Rothschild controlled mainstream media and as usual Israel is in no way even rebuked for their crimes by their subservient country of America.

The following day, June 9th, Israel illegally occupies the Golan Heights which it seizes from Syria. This area goes on to provide Israel with one third of its fresh water.

Israeli General Matityahu Peled, is quoted in Ha’aretz (19 March 1972) with the following statement,

“The thesis that the danger of genocide was hanging over us in June 1967 and that Israel was fighting for its physical existence is only bluff, which was born and developed after the war.” Another sickening and deceptive statement but again at least he’s consistent with the Mossad motto, “By Way Of Deception, Thou Shalt Do War.”

de Rothschild Freres is renamed Banque Rothschild.

1968: Nomie Halphen, wife of Maurice de Rothschild dies.

1970: While working for Senator Henry Scoop Jackson, Ashkenazi Jew, Richard Perle is caught by the FBI giving classified information to Israel. Nothing is done.

British Prime Minister Edward Heath makes Lord Victor Rothschild the head of his policy unit. Whilst he is in that role Britain enters the European Community.

1973: In his book, None Dare Call It Conspiracy, Gary Allen states,

“One major reason for the historical blackout on the role of the international bankers in political history is the Rothschilds were Jewish

The Jewish members of the conspiracy have used an organisation called The Anti-Defamation League (ADL) as an instrument to try and convince everyone that any mention of the Rothschilds and their allies is an attack on all Jews.

In this way they have stifled almost all honest scholarship on international bankers and made the subject taboo within universities.

Any individual or book exploring this subject is immediately attacked by hundreds of ADL communities all over the country. The ADL has never let the truth or logic interfere with its highly professional smear jobs

.Actually, nobody has a right to be more angry at the Rothschild clique than their fellow Jews

.The Rothschild empire helped finance Adolf Hitler.”

George J. Laurer an employee of the Rothschilds controlled IBM, invents the UPC (Universal Product Code) barcode which will eventually be placed upon every item traded worldwide and bear the number, 666. The Book of Revelation, Chapter 13, Verse 17 through 18, states the following in relation to this number,

“And that no man might buy or sell, save he that had the mark, or the name of the beast, or the number of his name.

Here is wisdom. Let him that hath understanding count the number of the beast: for it is the number of a man; and his number is Six hundred threescore and six.”

The whole Satanic aims of the Rothschilds are now in full view of the world, everything bought or sold carries the mark of the beast, 666.

N. M. Rothschild & Sons British Newfoundland Corporation, Churchill Falls project in Newfoundland, Canada, is completed.

N. M. Rothschild & Sons also create a new asset management part of the company which traded worldwide. This eventually became, Rothschild Private Management Limited.

Edmond de Rothschild, a great-grandson of Jacob (James) Mayer Rothschild, bought the cru bourgeois estate of Chateau Clarke in Bordeaux.

1976: Ashkenazi Jew, Harold Rosenthal, aide to Ashkenazi Jew, Senator Jacob Javits, states,

“Most Jews do not like to admit it, but our god is Lucifer.”

1978: Ashkenazi Jew, Stephen Bryen, then a Senate Foreign Relations Committee staffer, is overheard in a Washington D.C. hotel offering confidential documents to top Israeli military officials.

Bryen obtains a lawyer, Nathan Lewin, and the case heads for the grand jury, but is mysteriously dropped. Bryen later goes to work for Richard Perle.

1979: The Egyptian-Israeli peace treaty in 1979 was underwritten by United States aid which pledged $3 billion annually to Israel from the United States taxpayer (not even a drop in the ocean when you consider the amount they make off the Federal Reserve).

Shin Bet (the Israeli internal security agency) tries to penetrate the US Consulate General in Jerusalem through a Honey Trap, using a clerical employee who was having an affair with a Jerusalem girl.

Baron and Baroness Phillipi de Rothschild in a joint venture with Robert Mondavi, begin the construction of a pyramid in Napa Valley, California, where the leader/founder of the Church Of Satan, Ashkenazi Jew, Anton LaVey, was based. This is known as Opus 1 (which means, the first work), and the front for this temple is that it is a winery.

1980: The global phenomenon of privatisation starts. The Rothschilds are behind this from the very beginning in order to seize control of all publicly owned assets worldwide.

1981: Banque Rothschild is nationalised by the French government. The new bank is called, Compagnie Europenne de Banque. The Rothschilds subsequently set up a successor to this French bank, Rothschild & Cie Banque (RCB), which goes on to become a leading French investment house.

1982: From September 16 to 18, future Prime Minister of Israel and then Defence Minister, Ashkenazi Jew, Ariel Sharon, orchestrates Israel’s invasion of Lebanon, which provided ariel lighting in order to facilitate the killing of between 1000 and 2000 men, women and children in the Sabra and Shatila massacres.

1985: Eustace Mullins publishes, “Who Owns The TV Networks,” in which he reveals the Rothschilds have control of all three major U.S. Networks, which are: NBC; CBS; and ABC.

The New York Times reports the FBI is aware of at least a dozen incidents in which American officials transferred classified information to the Israelis, quoting (former Assistant Director of the F.B.I.) Raymond Wannal. The Justice Department does not prosecute.

Richard Smyth, the owner of MILCO, is indicted on charges of smuggling nuclear timing devices to Israel.

N. M. Rothschild & Sons advise the British government on the privatisation of British Gas. They subsequently advise the British government on virtually all of their other privatisations of state owned assets including: British Steel; British Coal; all the British regional electricity boards; and all the British regional water boards.

A British MP heavily involved in these privatisations is future Chancellor of the Exchequer, Norman Lamont, a former Rothschild banker.

1986: Mordechai Vanunu a technician at Dimona, Israel’s nuclear installation, from 1976 to 1985, discovers that the plant was secretly producing nuclear weapons.

His conscience made him speak out and in 1986 he provided the London Sunday Times with the facts and photos they used to tell the world about Israel’s nuclear weapons programme.

His evidence showed that Israel had stockpiled up to 200 nuclear warheads, with no debate or authorisation from it own citizens. On 30th September 1986, Vanunu was lured from London to Rome. There he was kidnapped, drugged and shipped to Israel.

After a secret trial he was sentenced to 18 years for, “treason,” and, “espionage,” (something Israel are very familiar with) though he had received no payment and had communicated with no foreign power.

He goes on to be held in complete isolation for 11 years, only allowed occasional visits from his family, lawyer and a priest, conducted through a metal screen. Although he completes his sentence, the Israeli government continues to hold him against his will.

1987: Edmond de Rothschild creates the World Conservation Bank which is designed to transfer debts from third world countries to this bank and in return those countries would give land to this bank. This is designed so the Rothschilds can gain control of the third world which represents 30% of the land surface of the Earth.

On April 24 the Wall Street Journal reveals the, “Role of Israel in Iran-Contra Scandal Won’t be Explored in Detail by Panels.”

1988: The ADL initiate a nationwide competition for law students to draft anti-hate legislation for minority groups. That competition is won by a man named, Joseph Ribakoff, whose thesis proposes that not only must hate motivated violence be banned, but also any words which stimulate: supiscion; friction; hate; and possible violence, these must also be criminalised.

This ADL prize-winning paper suggests that not only should state-agencies monitor and restrict free speech in general, but they should also censor all films that criticize identifiable groups. Furthermore, even if the person making the statement can justify it, for example Christians criticizing homosexuality because the bible expressly forbids it, Ribakoff asserts that the truth is to be no defence in court.

The only proof a court will need in order to secure a conviction of hate speech is that something has been said, and a minority group or member of such group has felt emotionally damaged as a result of such criticism. Therefore, under these proposals which the ADL will have forced into law all over the world less than 15 years later, Jesus Christ would have been arrested as a hate criminal.

This law is designed to protect the Rothschild conspiracy from being revealed in that if you criticize the Rothschilds criminal cabal, you will be targeted as anti-semitic, and thus risk imprisonment.

Philippe de Rothschild dies.

1989: Many of the satellite states in Eastern Europe, through the influence of Glasnost, become more open in their demands of freedom from Communist governance in their Republics.

Many revolutions happen in 1989, most of them involving the overthrow of their respective Communist governments and the replacement of them with Republics.

Thus, the hold the Communists had over Eastern Europe (the Iron Curtain) becomes very weak. Eventually, as a result of Perestroika and Glasnost, Communism collapses, not only in the Soviet Union but also in Eastern Europe.

In Russia, Boris Yeltsin (whose wife is the daughter of Joseph Stalin’s marriage to Rosa Kaganovich) and the Republican government takes steps to end the power of the Communist party by suspending and banning the party and seizing all their property.

This symbolised the fall of Communism in Russia, and resulted in the start of a mass exodus of 700,000 Jews from the former Soviet Union to Israel.

In the Israeli Journal, Hotam (24 November 1989), there is a report of a speech that then Israeli Deputy Foreign Minister, Ashkenazi Jew, Binyamin Netanyahu, gave to students at Bar Ilan University in which he states,

“Israel should have exploited the repression of the demonstrations in China, when world attention focused on that country, to carry out mass expulsions among the Arabs of the territories.”

The London and Paris Rothschilds announce the launch of a new subsidiary, Rothschild GmbH, in Frankfurt, Germany.

1991: Following the Iraqi invasion of Kuwait on August 2, 1990, on January 16 of this year the United States and Britain began an aerial bombing campaign of targets within Iraq. On 24 February the ground campaign commenced which was to last 100 hours until on February 28 when a horrendous war crime occurred.

This crime was the slaughter of 150,000 Iraqi troops with fuel air bombs. These Iraqis were fleeing on a crowded highway from Kuwait to Basra. President George Herbert Walker Bush ordered United States military aircraft and ground units to kill these surrendering troops, they were then bulldozed into mass unmarked graves in the desert, some still alive.

President Bush then ordered a cessation of hostilities. What was the significance of this slaughter and President Bush declaring the war over on this day? Well it was the day the, “Day of Purim,” fell on this year. This the day the Jews celebrate their victory over Ancient Babylon, now based within the borders of Iraq and a day when the Jews are encouraged to get bloody revenge against their perceived enemies.

At the Bilderberg Conference on June 6 to 9 of this year, in Baden-Baden, Germany, David Rockefeller (a Rothschild) made the following statement,

“We are grateful to the Washington Post, the New York Times, Time Magazine, and other great publications whose directors have attended our meetings and respected their promises of discretion for almost 40 years. It would have been impossible for us to develop our plan for the world, if we had been subjected to the lights of publicity during those years.

But the world is now more sophisticated and prepared to march towards a world government. The super-national sovereignty of an intellectual elite and world bankers is surely preferable to the national auto-determination practised in past centuries.”

1992: In March, former Federal Reserve Board Chairman, Paul A. Volker became Chairman of the European banking firm, J. Rothschild, Wolfensohn and Co.

Stephen Bryen, caught offering confidential documents to Israel in 1978, is serving on board of the pro-Israeli Jewish Institute for National Security Affairs while continuing as a paid consultant, with security clearance, on exports of sensitive US technology.

The Samson Option, by Seymour M. Hersh reports,

Illicitly obtained intelligence was flying so voluminously from LAKAM (a secret Israeli intelligence unit, a Hebrew acronym for Scientific Liaison Bureau) into Israeli intelligence that a special code name, JUMBO, was added to the security markings already on the documents. There were strict orders, Ari Ben-Menashe recalled. Anything marked JUMBO was not supposed to be discussed with your American counterparts.

The Wall Street Journal reports that Israeli agents apparently tried to steal Recon Optical Inc’s top-secret airborne spy-camera system.

On September 16th Britain’s pound collapses when currency speculators led by Rothschild agent, Ashkenazi Jew, George Soros, borrow pounds and sell them for Deutsche Marks, in the expectation of being able to repay the loan in devalued currency and to pocket the difference.

This results in the British Chancellor of the Exchequer, Norman Lamont, announcing a rise in interest rates of 5% in one day and as a result drives Britain into a recession which lasts many years as large numbers of businesses fail and the housing market crashes.

This is right on cue for the Rothschilds, after they had privatised Britain’s state owned assets during the 1980′s, driven the share price up, and then collapsed the markets so they could buy them up for pennies on the pound, a carbon copy of what Nathan Mayer Rothschild did to the British economy 180 years before, in 1812.

It cannot be overstated that the Chancellor of the Exchequer at that time, Norman Lamont, prior to becoming a MP, was a Merchant Banker with N. M. Rothschild and Sons, who he joined after reading Economics at Cambridge.

1993: Norman Lamont leaves the British government to return to N. M. Rothschild and Sons as a director, after his mission to collapse the British economy to profit the Rothschilds is accomplished.

Former Congressman, Paul Findley publishes his seminal book, Deliberate Deceptions: Facing the Facts About the U.S. Israeli Relationship.

In this book he lists the 65 United Nations Member Resolutions against Israel from the period 1955 to 1992, and the 30 United States vetoes on Israel’s behalf which if not made would have seen Israel have 95 resolutions against them at this point.

No matter, even with Israel’s puppet the United States helping them terrorise others, the 65 Resolutions passed against Israel are more than all the Resolutions passed against all other countries combined.

Not that Israel care too much about the views of the United Nations when you consider that less than two weeks after Israel’s attack on the USS Liberty (an attack designed to sink the Liberty and blame it on Egypt prompting the USA into a war with Egypt on behalf of Israeli Lies, remember the Mossad motto, By Way Of Deception, Thou Shalt Do War), the Israeli Foreign Minister, Aba Eban, stated of the United Nations,

“If the General Assembly were to vote by 121 votes to 1 in favor of, “Israel,” returning to the armistice lines (pre June 1967 borders), “Israel,” would refuse to comply with the decision,” New York Times 19 June 1967.

The ADL is caught operating a massive spying operation on critics of Israel, Arab-Americans, the San Francisco Labor Council, ILWU Local 10, Oakland Educational Association, NAACP, Irish Northern Aid, International Indian Treaty Council, the Asian Law Caucus and the San Francisco Police.

Data collected was sent to Israel and in some cases to South Africa. Pressure from Jewish organizations forces the city to drop the criminal case, but the ADL settles a civil lawsuit for an undisclosed sum of cash.

1995: Former atomic energy scientist, Dr Kitty Little claims the Rothschilds now control 80% of the world’s uranium supplies giving them a monopoly over nuclear power.

The Defense Investigative Service circulates a memo warning US military contractors that,

“Israel aggressively collects (US) military and industrial technology.”

The report stated that Israel obtains information using,

“ethnic targeting, financial aggrandizement, and identification and exploitation of individual frailties,” of US citizens.

1996: A General Accounting Office report, “Defense Industrial Security: Weaknesses in US Security Arrangements With Foreign-Owned Defense Contractors,” found that according to intelligence sources, “Country A,” (identified by intelligence sources as Israel, Washington Times, 22 February 1996),

“conducts the most aggressive espionage operation against the United States of any US ally.”

The Jerusalem Post (30 August 1996) quoted the report,

“Classified military information and sensitive military technologies are high-priority targets for the intelligence agencies of this country.”

The report described, “An espionage operation run by the intelligence organization responsible for collecting scientific and technologic information for (Israel) paid a US government employee to obtain US classified military intelligence documents.”

The Washington Report on Middle East Affairs (Shawn L. Twing, April 1996) noted that this was,

“a reference to the 1985 arrest of Jonathan Pollard, a civilian US naval intelligence analyst who provided Israel’s LAKAM espionage agency an estimated 800,000 pages of classified US intelligence information.”

The GAO report also noted that, “Several citizens of (Israel) were caught in the United States stealing sensitive technology used in manufacturing artillery gun tubes.”

An Office of Naval Intelligence document, “Worldwide Challenges to Naval Strike Warfare” reported that,

“US technology has been acquired (by China) through Israel in the form of the Lavi fighter and possibly SAM (surface-to-air) missile technology.”

Jane’s Defense Weekly (28 February 1996) noted that, “until now, the intelligence community has not openly confirmed the transfer of US technology (via Israel) to China.” The report noted that this, “represents a dramatic step forward for Chinese military aviation.” (Flight International, 13 March 1996).

Amschel Rothschild, 41, is strangled with the heavy cord of his own towel robe in his hotel room in Paris. French Prime Minister orders the French Police to close their investigation, and, Rupert Murdoch, born of a Jewish mother and so a Jew by Ashkenazi standards, instructs his editors and news managers around the world to report it as a heart attack, if they need to report it at all.

On 12 May United Nations Ambassador and Ashkenazi Jew, Madeleine Albright, when appearing on 60 Minutes, was asked the following by correspondent Lesley Stahl, in reference to the years of United States led economic sanctions against Iraq,

“We have heard that half a million children have died. I mean, that is more children than died in Hiroshima. And, you know, is the price worth it?”

To which Ambassador Albright replied,

“I think that is a very hard choice, but the price, we think, the price is worth it.”

Her comments cause no public outcry. In fact, the holocaust of half a million Iraqi children is positively admired by the United States government when you consider less than 8 months later, President Clinton appointed Albright as secretary of state. Whilst appearing before the Senate Committee, who were considering her appointment, Albright is literally chomping at the bit for the blood of more Iraqi children and she states,

“We will insist on maintaining tough UN sanctions against Iraq unless and until that regime complies with relevant Security Council resolutions.”

1997: An Army mechanical engineer, Ashkenazi Jew, David A. Tenenbaum, “inadvertently,” gives classified military information on missile systems and armored vehicles to Israeli officials (New York Times, 20 February 1997).

The Washington Post reports US intelligence has intercepted a conversation in which two Israeli officials had discussed the possibility of getting a confidential letter that then-Secretary of State Warren Christopher had written to Palestinian leader Yasser Arafat.

One of the Israelis, identified only as, Dov had commented that they may get the letter from, Mega, the code name for Israel’s top agent inside the United States.

US ambassador to Israel, Martin Indyk, complains privately to the Israeli government about heavy-handed surveillance by Israeli intelligence agents.

Israeli agents place a tap on Ashkenazi Jew and daughter of a Rabbi, Monica Lewinsky’s, phone at the Watergate and record phone sex sessions between her and President Bill Clinton. The Ken Starr report confirms that Clinton warned Lewinsky their conversations were being taped and ended the affair. Interestingly, at the same time, the FBI’s hunt for, “Mega,” is called off.

On 29 October Edmond de Rothschild dies in Geneva. Interestingly on the exact same day Anton Szandor LaVey, the founder of the Church of Satan also dies, who in his book, “Satan Speaks,” he states in relation to The Protocols Of The Elders Of Zion,

“The first time I read the Protocols of the Elders of Zion, my instinctive reaction was, So what’s wrong with THAT? Isn’t that the way any master plan should work? Doesn’t the public deserve – nay, demand – such despotism?”

Kofi Annan becomes Secretary General to the United Nations. He is married to Nane Lagergren, a Rothschild, who he wed in 1984.

1998: The European Central Bank is set up in Frankfurt, the city from which the Rothschilds originate.

2000: George W. Bush is elected (so they tell me) President of the United States. Bush and his family claim to be descendants of the House of Plantagenet which is descended from the Royal House of Judah.

2001: On September 11th the attack on the World Trade Center is orchestrated by Israel with the complicity of Britain and America, under the orders of the Rothschilds as a pretext for removing the liberty of people worldwide in exchange for security, just as happened with the Reichstag fire in Germany where the citizens were lied to in order to give up liberty for security.

They also will use the attacks to gain control of the few nations in the world who don’t allow Rothschild central banks and so less than one month after these attacks, US forces attack Afghanistan, one of only 7 nations in the world who don’t have a Rothschild controlled central bank.

Less than a week before the 9-11 attack on 5 September, the so-called lead hijacker Mohamed Atta and several other hijackers made a still-unexplained visit onboard one of Pro Israeli lobbyist, Ashkenazi Jew, Jack Abramoff’s casino boats.

No investigation is undertook as to what they were doing there. It is discovered that US drug agents communications have been penetrated. Suspicion falls on two companies, AMDOCS and Comverse Infosys, both owned by Israelis. AMDOCS generates billing data for most US phone companies and is able to provide detailed logs of who is talking to whom.

Comverse Infosys builds the tapping equipment used by law enforcement to eavesdrop on all American telephone calls, but suspicion forms that Comverse Infosys, which gets half of its research and development budget from the Israeli government, has built a back door into the system that is being exploited by Israeli intelligence and that the information gleaned on US drug interdiction efforts is finding its way to drug smugglers.

The investigation by the FBI leads to the exposure of the largest foreign spy ring ever uncovered inside the United States, operated by Israel. Half of the suspected spies have been arrested when 9-11 happens.

On 9-11, 5 Israelis are arrested for dancing and cheering while the World Trade Towers collapse. Supposedly employed by Urban Moving Systems, the Israelis are caught with multiple passports and a lot of cash.

Two of them are later revealed to be Mossad. As witness reports track the activity of the Israelis, it emerges that they were seen at Liberty Park at the time of the first impact, suggesting a foreknowledge of what was to come. The Israelis are interrogated, and then eventually sent back to Israel.

The owner of the moving company used as a cover by the Mossad agents abandons his business and flees to Israel. The United States Government then classifies all of the evidence related to the Israeli agents and their connections to 9-11.

All of this is reported to the public via a four part story on Fox News by Carl Cameron. Pressure from Jewish groups, primarily AIPAC, forces Fox News to remove the story from their website. Two hours prior to the 9-11 attacks, Odigo, an Israeli company with offices just a few blocks from the World Trade Towers, receives an advance warning via the internet.

The manager of the New York Office provides the FBI with the IP address of the sender of the message, but the FBI does not follow this up. The FBI is investigating 5 Israeli moving companies as possible fronts for Israeli intelligence.

It is revealed that prior to the attack millions of dollars of put options on both American Airlines and United Airlines, were traded. The FBI have promised to followed the purchasers up, but have never revealed their findings. That is because this would lead directly to Israel, the state behind the 911 attacks.

Following the World Trade Center attack, anonymous letters containing anthrax are sent to various politicians and media executives. Like the 9-11 attack this is immediately blamed on Al-Qaeda , until it is discovered that the anthrax contained within those letters is a specific type of weaponized anthrax made by a United States military laboratory.

The FBI then discover that the main suspect for these anthrax letters is a Ashkenazi Jew, Dr. Philip Zack, who had been reprimanded several times by his employers due to offensive remarks he made about Arabs. Dr. Philip Zack, was caught on camera entering the storage area where he worked at Fort Detrick which is where the Anthrax was kept. At this point, both the FBI and the mainstream media stopped making any public comments on the case.

Jewish Defence League Chairman since 1985, Ashkenazi Jew, Irv Rubin is jailed for allegedly plotting to bomb a mosque and the offices of a Arab-American congressman. He dies shortly after slitting his throat in a suicide attempt, before he can be brought to trial.

One week prior to the WTC attack, the Zim Shipping Company moves out of its offices in the WTC, breaking its lease and costing the company $50,000. No reason has ever been given, but Zim Shipping Company is half owned by the State of Israel (The Rothschilds).

On October 3, Israeli Prime Minister, Ariel Sharon, makes the following statement to Ashkenazi Jew, Shimon Peres, as reported on Kol Yisrael radio.

“Every time we do something you tell me America will do this and will do that….I want to tell you something very clear, don’t worry about American pressure on Israel. We, the Jewish people, control America, and the Americans know it.”

2002: Webster’s Third New International Dictionary (Unabridged), re-printed in 2002, provides a new definition of Anti Semitism which has not been updated since 1956. It reads,

“Anti-Semitism: (1) hostility toward Jews as a religious or racial minority group, often accompanied by social, political or economic discrimination (2) opposition to Zionism (3) sympathy for the opponents of Israel.”

It was definition (2) and (3) that were added in the 2002 edition, just before the USA decide to invade Iraq under orders from the State of Rothschild, I mean Israel. Also this year, the Prime Minister of Israel, war criminal, Ariel Sharon, orders the massacre in the Jenin refugee camp in the West Bank. Best get that definition updated to protect these criminals.

The DEA issues a report that Israeli spies, posing as art students, have been trying to penetrate US Government offices. Police near the Whidbey Island Naval Air Station in southern Washington State stop a suspicious truck and detain two Israelis, one of whom is illegally in the United States. The two men were driving at high speed in a Ryder rental truck, which they claimed had been used to, “deliver furniture.”

The next day, police discovered traces of TNT and RDX military-grade plastic explosives inside the passenger cabin and on the steering wheel of the vehicle. The FBI then announces that the tests that showed explosives were, “false positived,” by cigarette smoke, a claim test experts say is ridiculous.

Based on an alibi provided by a woman, the case is closed and the Israelis are handed over to INS to be sent back to Israel. One week later, the woman who provided the alibi vanishes.

2003: The United States invade Iraq on 19 March, which this year is the holy, “Day of Purim,” in the Jewish calendar. This, “Day of Purim,” is a day the Jews celebrate their victory over Ancient Babylon, now based within the borders of Iraq, how interesting.

What is also significant is that the previous U.S. led invasion of Iraq ended on the Day of Purim ten years earlier with the slaughter of 150,000 fleeing Iraqis under the current President’s father, George Herbert Walker Bush. Purim is also the time when the Jews are encouraged to get bloody revenge against their perceived enemies.

Ancient Babylon, I mean Iraq, is now one of six nations left in the world who don’t have a Rothschild controlled central bank. This war is mainly about stealing Iraq’s water supply for Israel and is being fought with the blood of the American military which the State of Rothschild, I mean Israel control.

Israel has always struggled for water, it had to steal the Golan Heights from Syria which provided Israel with one third of its fresh water 36 years before, yet still in Israel water extraction has surpassed replacement by 2.5 billion metres in the last 25 years.

This means the water is far more precious to them than the oil reserves which are the second largest reserves of oil on the planet.

Malaysian Prime Minister Mahathir Mohamed states in a speech,

“Jews rule the world by proxy. They get others to fight and die for them.”

The Police Chief of Cloudcroft stops a truck speeding through a school zone. The drivers turn out to be Israelis with expired passports. Claiming to be movers, the truck contains junk furniture and several boxes.

The Israelis are handed over to immigration. The contents of the boxers are not revealed to the public.

Israel deploys assassination squads into other countries, including the United States. The US Government does not protest.

2004: Two years into an investigation of AIPAC’s (The American Israel Public Affairs Committee’ the largest political lobbying group in the USA with over 65,000 members whose only purpose is to use the USA for the purposes of Israel) possible role as a spy front for Israel, Ashkenazi Jew, Larry Franklin, a mid-level Pentagon Analyst is observed by the FBI giving classified information to two officials of AIPAC suspected of being Israeli spies.

AIPAC hires lawyer Nathan Lewin to handle their legal defense, the same lawyer who defended suspected Israeli spy Stephen Bryen in 1978. Larry Franklin worked in the Pentagon Office of Special Plans, run by Richard Perle, at the time Perle (who was caught giving classified information to Israel back in 1970) was insisting that Iraq was crawling with weapons of mass destruction requiring the United States to invade and conquer Iraq.

There were no WMDs, of course, and Perle has dumped the blame for the, “bad intelligence,” on George Tenet. But what is known is that the Pentagon Office of Special Plans was coordinating with a similar group in Israel, in Ariel Sharon’s office.

With two suspected Israeli spies (at least) inside the office from which the lies that launched the war in Iraq originated, it appears that the people of the United States are the victims of a deadly hoax, a hoax that started a war using the blood and money of American citizens for the purposes of Israeli oppression.

The leaking of the investigation of AIPAC to the media on August 28th, 2004 gave advance warning to other spies working with Franklin. The damage to the FBI’s investigation was completed when United States Attorney General John Ashcroft ordered the FBI to stop all arrests in the case.

Like the Stephen Bryen case and the hunt for, “Mega,” this latest spy scandal seems destined by officials who have their own secret allegiances to protect, barring a massive public outcry.

Police near the Nuclear Fuel Services plant in Tennessee stop a truck after a three mile chase, during which the driver throws a bottle containing a strange liquid from the cab. The drivers turn out to be Israelis using fake identifications. The FBI refuses to investigate and the Israelis are released.

Two Israelis try to enter Kings Bay Naval Submarine Base, home to eight Trident submarines. The truck tests positive for explosives.

The National Director of the ADL, Abraham H. Foxman, publishes a book entitled, “Never Again? The Threat Of The New Anti-Semitism,” in which he states that the New Testament’s “lie,” that the ancient Pharisees were responsible for the death of Christ, has been responsible for anti-semitism throughout the millennia and thus the New Testament of the bible is, “hate speech,” and should be censored or banned.

2005: On January 20, President Bush makes the following statement as part of his second inaugural address, “When our Founders declared a new order of the ages.” This is not true. The founders did not declare a, “new order of the ages,” President Roosevelt did when in 1933, he put it’s latin translation, “Novus Ordo Seclorum,” on the dollar bill.

On 7 July the London Underground Network is bombed. Israel’s Finance Minister, Binyamin Netanyahu is in London on the morning of the attacks in order to attend an economic conference in a hotel over the underground station where one of the blasts occurred, but stayed in his hotel room instead after he had been informed by Israeli intelligence officials attacks were expected.

There are now only 5 nations on the world left without a Rothschild controlled central bank: Iran; North Korea; Sudan; Cuba; and Libya.

Physics Professor, Stephen E. Jones of Brigham Young University publishes a paper in which he proves the World Trade Center buildings could have only been brought down in the manner they were by explosives. He receives no coverage in the mainstream media for his scientific and provable claims.

2006: The Edmond De Rothschild Banque, a subsidiary of Europe’s Edmond De Rothschild family bank group in France, becomes the first foreign family bank that has obtained approval of the China Banking Regulatory Commission and entered China’s financial market.

The ADL ruthlessly leans on governments throughout the world to pass hate crimes legislation, as they are scared that the criminal cabal that is Israel and the Rothschilds is being exposed more and more on a daily basis, predominantly on the internet. Their job is to protect this criminal network and what better way to do it than by passing laws in which anyone who exposes a Jewish criminal becomes a criminal.

David Irving is sentenced to three years in jail in Austria, for denying the holocaust. It is important to note that the only historical event you can be arrested for questioning is the holocaust. This is because this has been the Rothschilds greatest weapon in brainwashing YOU, THE STUPID GOY! is that the Jews are so poor and persecuted when in actual fact they control the vast majority of international finance and international corporations throughout the world.

Resources

Here is a link to 6 pages of autographs from the 1929 Zionist congress with some very interesting names on it.
Main page: www.historyforsale.com

Sources

Holy Bible – King James Version

Proofs of a Conspiracy Against All the Religions and Governments of Europe Carried on in the Secret Meetings of Freemasons, Illuminati and Reading Societies – John Robison – 1798

The Life of Napolean – Sir Walter Scott – 1827

Coningsby – Benjamin Disraeli – 1844

The Communist Manifesto – Karl Marx, Friedrich Engels, Martin Malia – 1848

Morals and Dogma of the Ancient and Accepted Scottish Rite of Freemasonry – Albert Pike – 1872

The Rothschilds, Financial Rulers Of Nations – John Reeves – 1887

The Jews and Modern Capitalism – Werner Sombart – 1911

Great Britain, The Jews, and Palestine – Samuel Landman – 1936

Pawns In The Game – William Guy Carr – 1937

Inside The Gestapo – Hansjurgen Koehler – 1940

Barriers Down – Kent Cooper – 1942

The Mind Of Adolf Hitler – Walter Langer – 1943

The Empire Of The City – E. C. Knuth – 1946

The Jewish State – Theodor Herzl – 1946

The Curious History of the Six-Pointed Star – G. Scholem – 1949

Secrets Of The Federal Reserve – Eustace Mullins – 1952

Tales Of The British Aristocracy – L. G. Pine – 1957

Red Fog Over America – William Guy Carr – 1958

A Jewish Defector Warns America (Spoken Word Recording) – Benjamin H. Freedman – 1961

The Rothschilds – Frederic Morton – 1962

The Illuminati and the Council on Foreign Relations (Spoken Word Recording) – Myron Fagan – 1967

Ben-Gurion: The Armed Prophet – Michael Bar-Zohar – 1967

The Hidden Tyranny – Benjamin Freedman – 1971

None Dare Call It Conspiracy – Gary Allen – 1972

The Gulag Archipelago, Vol. 2, Parts 3 and 4 – Aleksandr Solzhenitsyn – First English translation published 1975.

Wall Street And The Rise Of Hitler – Anthony C. Sutton – 1976

The Rosenthal Document – Walter White, Jr. – 1978

Two Rothschilds And The Land Of Israel – Simon Schama – 1978

The Six Pointed Star – Dr O. J. Graham – 1984

The Last Days In America – Bob Fraley – 1984

Who Owns The TV Networks – Eustace Mullins – 1985

The Samson Option: Israel’s Nuclear Arsenal and American Foreign Policy – Seymour M. Hersh – 1991

A History of the Jews in America – Howard M. Sachar – 1992

Deliberate Deceptions: Facing the Facts About the U.S. Israeli Relationship – Paul Findley – 1993

Descent Into Slavery – Des Griffin – 1994

Bloodlines Of The Illuminati – Fritz Springmeier – 1995

Jewish History, Jewish Religion – Israel Shahak – 1994

Satan Speaks – Anton Szandor LaVey – 1998

The Elite Serial Killers of Lincoln, JFK, RFK & MLK – Robert Gaylon Ross – 2001

Never Again? The Threat Of The New Anti-Semitism – Abraham H. Foxman – 2004

The Elite Don’t Dare Let Us Tell The People – Robert Gaylon Ross – 2004

by Michel Chossudovsky


“We will rebuild, we will recover, and the United States of America will emerge stronger” –President Barack Obama, State of the Union Address 24 Feb 2009

“Those of us who manage the public’s dollars will be held to account—to spend wisely, reform bad habits, and do our business in the light of day—because only then can we restore the vital trust between a people and their government.” –President Barack Obama, A New Era of Responsibility, the 2010 Budget

“Strong economic medicine” with a “human face”

“Promise amid peril.” The stated priorities of the Obama economic package are health, education, renewable energy, investment in infrastructure and transportation. “Quality education” is at the forefront. Obama has also promised to “make health care more affordable and accessible”, for every American.

At first sight, the budget proposal has all the appearances of an expansionary program, a demand oriented “Second New Deal” geared towards creating employment, rebuilding shattered social programs and reviving the real economy.

The realities are otherwise. Obama’s promise is based on a mammoth austerity program. The entire fiscal structure is shattered, turned upside down.

To reach these stated objectives, a significant hike in public spending on social programs (health, education, housing, social security) would be required as well as the implementation of a large scale public investment program. Major shifts in the composition of public expenditure would also be required: i.e. a move out of a war economy, requiring a movement out of military related spending in favour of civilian programs.

In actuality, what we are dealing with is the most drastic curtailment in public spending in American history, leading to social havoc and the potential impoverishment of millions of people.

The Obama promise largely serves the interests of Wall Street, the defence contractors and the oil conglomerates. In turn, the Bush-Obama bank “bailouts” are leading America into a spiralling public debt crisis. The economic and social dislocations are potentially devastating.

Obama’s budget submitted to Congress on February 26, 2009 envisages outlays for the 2010 fiscal year (commencing October 1st 2009) of $3.94 trillion, an increase of 32 percent. Total government revenues for the 2010 fiscal year, according to preliminary estimates by the Bureau of Budget, are of the order of $2.381 trillion.

The predicted budget deficit (according to the president’s speech) is of the order of $1.75 trillion, almost 12 percent of the U.S. Gross Domestic Product.

War and Wall Street

This is a “War Budget”. The austerity measures hit all major federal spending programs with the exception of: 1. Defence and the Middle East War: 2. the Wall Street bank bailout, 3. Interest payments on a staggering public debt.

The budget diverts tax revenues into financing the war. It legitimizes the fraudulent transfers of tax dollars to the financial elites under the “bank bailouts”.

The pattern of deficit spending is not expansionary. We are not dealing with a Keynesian style deficit, which stimulates investment and consumer demand, leading to an expansion of production and employment.

The “bank bailouts” (involving several initiatives financed by tax dollars) constitute a component of government expenditure. Both the Bush and Obama bank bailouts are hand outs to major financial institutions. They do not not constitute a positive spending injection into the real economy. Quite the opposite. The bailouts contribute to financing the restructuring of the banking system leading to a massive concentration of wealth and centralization of banking power.

A large part of the bailout money granted by the Us government will be transferred electronically to various affiliated accounts including the hedge funds. The largest banks in the US will also use this windfall cash to buy out their weaker competitors, thereby consolidating their position. The tendency, therefore, is towards a new wave of corporate buyouts, mergers and acquisitions in the financial services industry.

In turn, the financial elites will use these large amounts of liquid assets (paper wealth), together with the hundreds of billions acquired through speculative trade, to buy out real economy corporations (airlines, the automobile industry, Telecoms, media, etc ), whose quoted value on the stock markets has tumbled.

In essence, a budget deficit ( combined with massive cuts in social programs) is required to fund the handouts to the banks as well as finance defence spending and the military surge in the Middle East war. Obama’s budget envisages:

1. defense spending of $534 billion for 2010, a supplemental 130 billion dollar appropriation for fiscal 2010 for the wars in Afghanistan and Iraq, and a supplemental $75.5 billion emergency war funding for the rest of the 2009 fiscal year. Defence spending and the Middle East war, with various supplemental budgets, is (officially) of the order of 739.5 billion. Some estimates place aggregate defence and military related spending at $ 1 trillion+.

2. A bank bailout of the order of $750 billion announced by Obama, which is added on to the 700 billion dollar bailout money already allocated by the outgoing Bush administration under the Troubled Assets Relief Program (TARP). The total of both programs is a staggering 1.45 trillion dollars to be financed by the Treasury. It should be understood that the actual amount of cash financial “aid” to the banks is significantly larger than $1.45 trillion. (See Table 2 below).

3. Net Interest on the outstanding public debt is estimated by the Bureau of the Budget) at $164 billion in 2010.

The order of magnitude of these allocations is staggering. Under a “balanced budget” criterion –which has been a priority of government economic policy since the Reagan era–, almost all the revenues of the federal government amounting to $2.381 trillion would be used to finance the bank bailout (1.45 trillion), the war ($739 billion) and interest payments on the public debt ($164 billion). In other words, no money would be left over for other categories of public expenditure.

TABLE 1 Budgetary allocations to Defence (FY 2009 and 2010), the Bank Bailout and Net Interests on the Public Debt (FY 2010)

$ Billions

Defence including Supplementary allocations; $534 billion (FY 2010), $130 billion supplemental (FY 2010), $75.5 billion emergency funding (FY2009)

739.5
*Bank bailout (TARP plus Obama) 1450.0
Net Interest 164.0
TOTAL 2353.5
Total Individual (Federal) Income Tax Revenues (FY 2010) 1061.0
Total Federal Government Revenue (FY 2010) 2381.0

Source: Bureau of the Budget and official statements. See A New Era of Responsibility: The 2010 Budget
See also Office of Management and Budget

* The officially announced bank bailouts to be financed from Treasury Funds. The timing of disbursements could take place over more than one fiscal years fiscal years. The actual value of bank bailout cash injections is substantially higher.

The Budget Deficit

These three categories of expenditure (Defence, Bank Bailout and Interest on the Public Debt) would virtually swallow up the entire 2010 federal government revenue of 2381.0. billion dollars

Moreover, as a basis of comparison, all the revenue accruing from individual federal income taxes ($1.061 trillion), (FY 2010) namely all the money households across America pay annually in the form of federal taxes, will not suffice to finance the handouts to the banks, which officially are of the order of 1.45 trillion. This amount includes the $ 700 billion (granted during FY 2009) under the TARP program plus the proposed $ 750 billion granted by the Obama administration.

While TARP and Obama’s proposed bailout are to be disbursed over Fy 2009 and 2010, they nonetheless represent almost half of total government expenditure (half of Obama’s $3.94 trillion budget for fiscal 2010), which is financed by regular sources of revenue ($2381 billion) plus a staggering $1.75 trillion budget deficit, which ultimately requires the issuing of Treasury Bills and government bonds.

The feasibility of a large short-term expansion of the public debt at a time of crisis is yet another matter, particularly with interest rates at abysmally low levels.

The budget deficit is of the order of 1.75 trillion. Obama acknowledges a 1.3 trillion-dollar budget deficit, inherited from the Bush administration. In actuality, the budget deficit is much larger .

The official figures tend to underestimate the seriousness of the budgetary predicament. The $1.75 trillion dollar budget deficit figure is questionable because the various amounts disbursed under TARP and other related bank bailouts including Obama’s announced $750 billion aid program to financial institutions are not acknowledged in the government’s expenditure accounts.

“The aid hasn’t been requested formally, but appears in a line item “for potential additional financial stabilization efforts,” according to the budget overview. The budget office calculated a $250 billion net cost to taxpayers this year, because it anticipates it would eventually recoup some, though not all, of the money expended to help financial companies.

The funds would come on top of the $700 billion rescue package approved last October by Congress. The White House budgets no money for fiscal 2010 and beyond for such aid.” (Bloomberg, February 27, 2010)

Fiscal Collapse

A major crisis of the federal fiscal structure is occurring. The multibillion dollar allocations to the War Budget and to the Wall Street Bank Bailout program backlash on all other categories of public expenditure.

The Bush administration’s $ 700 billion bailout under the Troubled Asset Relief Program (TARP) was approved by Congress in October. TARP is but the tip of the iceberg. A panoply of bailout allocations in addition to the $ 700 billion were decided upon prior to Obama assuming office. In November, the federal government’s bank rescue program was estimated at a staggering 8.5 trillion dollars, an amount equivalent to more than 60% of the US public debt estimated at 14 trillion (2007). (See table 2 below)

Meanwhile, under the Obama budget proposal, 634 billion dollars are allocated to a reserve fund to finance universal health care. At first sight, it appears to be a large amount. But it is to be spent over a ten year period, — i.e. a modest annual commitment of 63.4 billion.

Public spending will be slashed with a view to curtailing a spiralling budget deficit. Health and education programs will not only remain heavily underfunded, they will be slashed, revamped and privatized. The likely outcome is the outright privatization of public services and the sale of State assets including public infrastructure, urban services, highways, national parks, etc. Fiscal collapse leads to the privatization of the State.

The fiscal crisis is further exacerbated by the compression of tax revenues resulting from decline of the real economy. Unemployed workers do not pay taxes nor do bankrupt firms. The process is cumulative. The solution to the fiscal crisis becomes the cause of further collapse.

Structure of The Public Debt

This large scale appropriation of liquid money assets under the bank bailouts by a handful of financial institutions serves to increase the public debt overnight.

When the US Treasury allocates 700 billion dollars to the Troubled Assets Relief Program, this amount constitutes a budgetary outlay which inevitably must be financed from within the structure of government revenues and expenditures.

Unless all other categories of public expenditure including health, education and social services are slashed, the various outlays under the bank bailout will require running a massive budget deficit which in turn will increase the US public debt.

America is the most indebted country on earth. The US (federal government) public debt is currently of the order of $14 trillion. This does not include mounting public debts at the state and municipal levels.

This US dollar denominated (federal) debt is composed of outstanding treasury bills and government bonds. The public debt, also called “the national debt” is the amount of money owed by the federal government to holders of U.S. debt instruments.

US debt instruments are held by American residents as part of their savings portfolio, companies and financial institutions, US government agencies, foreign governments, individuals in foreign countries. but does not include intergovernmental debt obligations or debt held in the Social Security Trust Fund. Types of securities held by the public include, but are not limited to, Treasury Bills, Notes, Bonds, TIPS, United States Savings Bonds, and State and Local Government Series securities.

The proposed solution becomes the cause of the crisis. The 700 billion bailout under the Troubled Asset Relief Program (TARP) combined with the proposed Obama $750 billion aid to financial services industry is but the tip of the iceberg. A panoply of bailout allocations in addition to the 700 billion have been decided upon.

Table 2

The Bush Administration’s ” Bank Bailout”

The government’s bank rescue program under the Bush administration was estimated at a staggering 8.5 trillion dollars, an amount equivalent to 60% of the Total Gross Federal debt of 14.078 trillion (2010) (See Table 2 above). This amount does not include the “aid” to financial institutions proposed by the Obama administration, including an additional 750 billion dollars in Obama’s February 2009 budget proposal. The size of these allocations of liquid assets endangers the very structures of the fiscal and monetary system.

The total of Bush bank bailouts (8.5 trillion) can be broken down into funds granted by the Federal Reserve, the Treasury, the Federal Deposit Insurance Corporation and the Federal Housing Authority.

The handouts to the financial institutions financed out of Treasury are government expenditures, to be met either through tax revenues or through the emission of public debt instruments.

The disbursements under TARP are categorized by the Bureau of the Budget as part of “a mandatory program” under an Act of the US Congress.. The Treasury’s liability, which includes the controversial Troubled Assets Relief Program, was estimated in November 2008 at 1.1 trillion dollars. (See Table 2) Further Treasury allocations, which serve to heighten the burden of the public debt have been envisaged by the Obama administration

Spiralling Public Debt Crisis

Is the Treasury in a position to finance this mounting budget deficit officially tagged at 1.75 billion through the emission of Treasury bills and government bonds?

The largest budget deficit in US history coupled with the lowest interest rates in US history: With the Fed’s ” near zero” percent discount rate, the markets for US dollar denominated government bonds and Treasury bills are in straightjacket. Moreover, the essential functions of savings (which is central to the functioning of a national economy) is in crisis. .

Who wants to invest in US government debt? What is the demand for Treasury bills at exceedingly low interest rates?

Table 3 Interest Rates in Percent

Treasury securities Updated 2/25/2009
This week Month ago Year ago
One-Year Treasury Constant Maturity 0.64 0.43 2.10
91-day T-bill auction avg disc rate 0.300 0.150 2.160
182-day T-bill auction avg disc rate 0.495 0.350 2.070
Two-Year Treasury Constant Maturity 0.95 0.77 2.04
Five-Year Treasury Constant Maturity 1.79 1.58 2.89
Ten-Year Treasury Constant Maturity 2.75 2.56 3.85
One-Year MTA 1.633 1.823 4.326
One-Year CMT (Monthly) 0.44 0.49 2.71

Source Bankrate.com


The market for US dollar denominated debt instruments is potentially at a standstill, which means that the Treasury lacks the ability to finance its mammoth budget deficit through public debt operations, leading the entire budgetary process into a quandary.

The question is whether China and Japan will continue to purchase US dollar denominated debt instruments. Washington is running a public relations campaign to lure Asian investors into buying T-bills and US government bonds. .

With the markets for US dollar denominated debt (both domestically and internationally) in crisis, further pressure will be exerted on the Treasury to slash (civilian) public expenditure to the bone, exact user fees for public services and sell off public assets, including State infrastructure and institutions. In all likelihood, this crisis is leading us to the privatization of the State, where activities hitherto under government jurisdiction will be transferred into private hands.

Who will be buying State assets at rock bottom prices? The financial elites, which are also the recipients of the bank bailout.

Consolidation of the Banks

A massive amount of liquidity has been injected into the financial system, from the bailouts but also from pension funds, individual savings, etc.

The stated objective of the bank bailout programs is to alleviate the banks’ burden of bad debts and non-performing loans. In actuality what is happening is that these massive amounts of money are being used by a handful of institutions to consolidate their position in global banking.

The exposure of the banks, largely the result of derivative trade, is estimated in the tens of trillions of dollars, to the extent that the amounts and guarantees granted by the Treasury and the Fed will not resolve the crisis. Nor are they intended to resolve the crisis.

The mainstream media suggests that the banks are being nationalized as a result of TARP, In fact, it is exactly the opposite: the State is being taken over by the banks, the State is being privatized. The establishment of a Worldwide unipolar financial system is part of the broader project of the Wall Street financial elites to establish the contours of a world government.

In a bitter irony, the recipients of the bailout under TARP and Obama’s proposed $750 billion aid to financial institutions are the creditors of the federal government. The Wall Street banks are the brokers and underwriters of the US public debt, although they hold only a portion of the debt, they transact and trade in US dollar denominated public debt instruments Worldwide.

They act as creditors of the US State. They evaluate the creditworthiness of the US government, they rank the public debt through Moody’s and Standard and Poor. They control the US Treasury, the Federal Reserve Board and the US Congress. They oversee and dictate fiscal and monetary policy, ensuring that the State acts in their interest.

Since the Reagan era, Wall Street dominates most areas of economic and social policy. It sets the budgetary agenda, ensuring the curtailment of social expenditures. Wall Street preaches balanced budgets but the practice has been lobbying for the elimination of corporate taxes, the granting of handouts to corporations, tax write-offs in mergers and acquisitions etc, all of which lead to a spiralling public debt.

Circular and Contradictory Relationship

The Federal Reserve system is a privately owned central bank. While the Federal Reserve Board is a government body, the process of money creation is controlled by the 12 Federal Reserve Banks, which are privately owned.

The shareholders of the Federal Reserve banks (with the New York Federal Reserve Bank playing a dominant role) are among America’s most powerful financial institutions.

While the Federal Reserve can create money “out of thin air”, the multibillion outlays of the Treasury (including the TARP program) will require the emission of public debt in the form of Treasury Bills and government bonds.

US financial institutions oversee the US public debt. They are involved in the sale of treasury bills and government bonds on financial markets in the US and around the World. But they also hold part of the public debt. In this regard, they are the creditors of the US government. Part of this increased public debt required to rescue the banks will be financed or brokered by the same financial institutions which are the object of the bank rescue plan.

We are dealing with a pernicious circular relationship. When the banks pressured the Treasury to assist them in the form of a major bank rescue operation, it was understood from the outset that the banks would in turn assist the Treasury in financing the handouts of which they are the recipients.

To finance the bank bailout, the Treasury needs to run a massive budget deficit, which in turn requires a staggering increase of the US public debt.

Public opinion has been misled. The US government is in a sense financing its own indebtedness: the money granted to the banks is in part financed by borrowing from the banks.

The banks lend money to the government and with the money they lend the government, the Treasury finances the bailout. In turn, the banks impose conditionalities on the management of the US public debt. They dictate how the money should be spent. They impose fiscal responsibility, they dictate massive cuts in social expenditures which result in the collapse and/or privatization of public services. They impose the privatization of urban infrastructure, roads, sewer and water systems, public recreational areas, everything is up for privatization.

The recipient banks are the beneficiaries as well as the creditors. As creditors, they will oblige the government a) to slash expenditures b) to run up the public debt through the issuing of treasury bills and government bonds.

This public debt crisis is all the more serious because the US federal government does not control monetary policy. All public debt operations go through the Federal reserve, which is in charge of monetary policy, acting on behalf of private financial interests. The government as such has no authority over money creation. This means that public debt operations essentially serve the interests of the banks.

Continuity from Bush to Obama

The Obama stimulus program constitutes a continuation of the Bush administration’s bank bailout packages. The proposed policy solution to the crisis becomes the cause, ultimately resulting in further real economy bankruptcies and a corresponding collapse of the standard of living of Americans.

Both the Bush and Obama bank bailouts are intended to come to the rescue of troubled financial institutions, to ensure the payment of “inter-bank” debt operations. In practice, large amounts of money transit through the banking system, from the banks to the hedge funds, to offshore banking havens and back to the banks.

The government and the media tend to focus on the ambiguous notion of ” inter-bank debts”. The identity of the creditors is rarely mentioned.

Multi-billion dollar transfers are conducted electronically from one financial entity to another. Where is the money going? Who is collecting these multibillion debts, which are in large part the consequence of financial manipulation and derivative trade?

There are indications that the financial institutions are transferring billions of dollars into their affiliated hedge funds. From these hedge funds they can then channel money capital towards the acquisition of real assets.

Through what circuitous financial mechanisms were these debts created? Where is the bailout money going? Who is cashing in on the multibillion dollar government bailout money? This process is contributing to an unprecedented concentration of private wealth.

Concluding Remarks

Financial manipulation is an integral part of the New World Order. It constitutes a powerful means to accumulate wealth. Under the present political arrangement, those responsible for monetary policy are quite deliberately serving the interests of the financiers, to the detriment of working people, leading to economic dislocation, unemployment and mass poverty.

This article has focussed on how financial manipulation has served to shatter the structure of US public expenditure.

More generally, this restructuring of global financial markets and institutions (alongside the pillage of national economies) has enabled the accumulation of vast amounts of private wealth – a large portion of which has been amassed as a result of strictly speculative transactions.

This critical drain of billions of dollars of household savings and state tax revenues paralyses the functions of government spending and spurs the accumulation of a public debt, which can no longer be be financed through the emission of US dollar denominated debt.

What we are dealing with is the fraudulent transfer and confiscation of lifelong savings and pension funds, the fraudulent appropriation of tax revenues to finance the bank bailouts, etc. To understand what has happened: follow the money trail of electronic transfers with a view to establishing where the money has gone. What is at stake is the outright criminalization of the financial system:financial theft” on an unprecedented scale.

The monetary system, which is integrated into the State budgetary process has been destabilized. The fundamental relationship between the monetary system and the real economy is in crisis.

The creation of money “out of thin air” threatens the value of the US dollar as an international currency. Similarly, the financing of a mammoth US budget deficit through dollar denominated debt instruments is impaired as a result of exceedingly low interest rates. Moreover, the process of household savings is undermined with interest rates close to zero.

What we have dealt with in this article is one central aspect of an evolving process of global financial collapse.

The international payments system is in crisis. The economic prospects are terrifying. Bankruptcies in the US, Canada, the European Union are occurring at an alarming rate. Country level exports have collapsed, leading to a contraction of international trade Reports from the Asian economies indicate a massive increase in unemployment. In China’s Pearl River basin in Southern Guangdong province’s industrial export processing economy, some 700,000 workers were laid off in January. (China Morning Post, Feb 6, 2009). In Japan, industrial output has collapsed by more than 20 percent since December. In the Philippines, a country of 90 million people, exports collapsed by more than 40 percent in December.

Financial Disarmament

There are no solutions under the prevailing global financial architecture. Meaningful policies cannot be achieved without radically reforming the workings of the international banking system.

What is required is an overhaul of the monetary system including the functions and ownership of the central bank, the arrest and prosecution of those involved in financial fraud both in the financial system and in governmental agencies, the freeze of all accounts where fraudulent transfers have been deposited, the cancellation of debts resulting from fraudulent trade and/or market manipulation.

People across the land, nationally and internationally, must mobilize. This struggle to democratise the financial and fiscal apparatus must be broad-based and democratic encompassing all sectors of society at all levels, in all countries. What is ultimately required is to disarm the financial establishment:

-confiscate those assets which were obtained through fraud and financial manipulation.

-restore the savings of households through reverse transfers

-return the bailout money to the Treasury, freeze the activities of the hedge funds. .

- freeze the gamut of speculative transactions including short-selling and derivative trade.



ANNEX

Documents


A New Era of Responsibility: The 2010 Budget

The tables contained in Annex can also be consulted by clicking:

Summary Tables

See also:

http://www.budget.gov

http://www.gpoaccess.gov/usbudget/fy10/pdf/fy10-newera.pdf




The Economic Depression was predicted in this 2002 best-seller

The Globalization of Poverty and the New World Order



by Michel Chossudovsky


“We will rebuild, we will recover, and the United States of America will emerge stronger” –President Barack Obama, State of the Union Address 24 Feb 2009

“Those of us who manage the public’s dollars will be held to account—to spend wisely, reform bad habits, and do our business in the light of day—because only then can we restore the vital trust between a people and their government.” –President Barack Obama, A New Era of Responsibility, the 2010 Budget

“Strong economic medicine” with a “human face”

“Promise amid peril.” The stated priorities of the Obama economic package are health, education, renewable energy, investment in infrastructure and transportation. “Quality education” is at the forefront. Obama has also promised to “make health care more affordable and accessible”, for every American.

At first sight, the budget proposal has all the appearances of an expansionary program, a demand oriented “Second New Deal” geared towards creating employment, rebuilding shattered social programs and reviving the real economy.

The realities are otherwise. Obama’s promise is based on a mammoth austerity program. The entire fiscal structure is shattered, turned upside down.

To reach these stated objectives, a significant hike in public spending on social programs (health, education, housing, social security) would be required as well as the implementation of a large scale public investment program. Major shifts in the composition of public expenditure would also be required: i.e. a move out of a war economy, requiring a movement out of military related spending in favour of civilian programs.

In actuality, what we are dealing with is the most drastic curtailment in public spending in American history, leading to social havoc and the potential impoverishment of millions of people.

The Obama promise largely serves the interests of Wall Street, the defence contractors and the oil conglomerates. In turn, the Bush-Obama bank “bailouts” are leading America into a spiralling public debt crisis. The economic and social dislocations are potentially devastating.

Obama’s budget submitted to Congress on February 26, 2009 envisages outlays for the 2010 fiscal year (commencing October 1st 2009) of $3.94 trillion, an increase of 32 percent. Total government revenues for the 2010 fiscal year, according to preliminary estimates by the Bureau of Budget, are of the order of $2.381 trillion.

The predicted budget deficit (according to the president’s speech) is of the order of $1.75 trillion, almost 12 percent of the U.S. Gross Domestic Product.

War and Wall Street

This is a “War Budget”. The austerity measures hit all major federal spending programs with the exception of: 1. Defence and the Middle East War: 2. the Wall Street bank bailout, 3. Interest payments on a staggering public debt.

The budget diverts tax revenues into financing the war. It legitimizes the fraudulent transfers of tax dollars to the financial elites under the “bank bailouts”.

The pattern of deficit spending is not expansionary. We are not dealing with a Keynesian style deficit, which stimulates investment and consumer demand, leading to an expansion of production and employment.

The “bank bailouts” (involving several initiatives financed by tax dollars) constitute a component of government expenditure. Both the Bush and Obama bank bailouts are hand outs to major financial institutions. They do not not constitute a positive spending injection into the real economy. Quite the opposite. The bailouts contribute to financing the restructuring of the banking system leading to a massive concentration of wealth and centralization of banking power.

A large part of the bailout money granted by the Us government will be transferred electronically to various affiliated accounts including the hedge funds. The largest banks in the US will also use this windfall cash to buy out their weaker competitors, thereby consolidating their position. The tendency, therefore, is towards a new wave of corporate buyouts, mergers and acquisitions in the financial services industry.

In turn, the financial elites will use these large amounts of liquid assets (paper wealth), together with the hundreds of billions acquired through speculative trade, to buy out real economy corporations (airlines, the automobile industry, Telecoms, media, etc ), whose quoted value on the stock markets has tumbled.

In essence, a budget deficit ( combined with massive cuts in social programs) is required to fund the handouts to the banks as well as finance defence spending and the military surge in the Middle East war. Obama’s budget envisages:

1. defense spending of $534 billion for 2010, a supplemental 130 billion dollar appropriation for fiscal 2010 for the wars in Afghanistan and Iraq, and a supplemental $75.5 billion emergency war funding for the rest of the 2009 fiscal year. Defence spending and the Middle East war, with various supplemental budgets, is (officially) of the order of 739.5 billion. Some estimates place aggregate defence and military related spending at $ 1 trillion+.

2. A bank bailout of the order of $750 billion announced by Obama, which is added on to the 700 billion dollar bailout money already allocated by the outgoing Bush administration under the Troubled Assets Relief Program (TARP). The total of both programs is a staggering 1.45 trillion dollars to be financed by the Treasury. It should be understood that the actual amount of cash financial “aid” to the banks is significantly larger than $1.45 trillion. (See Table 2 below).

3. Net Interest on the outstanding public debt is estimated by the Bureau of the Budget) at $164 billion in 2010.

The order of magnitude of these allocations is staggering. Under a “balanced budget” criterion –which has been a priority of government economic policy since the Reagan era–, almost all the revenues of the federal government amounting to $2.381 trillion would be used to finance the bank bailout (1.45 trillion), the war ($739 billion) and interest payments on the public debt ($164 billion). In other words, no money would be left over for other categories of public expenditure.

TABLE 1 Budgetary allocations to Defence (FY 2009 and 2010), the Bank Bailout and Net Interests on the Public Debt (FY 2010)

$ Billions

Defence including Supplementary allocations; $534 billion (FY 2010), $130 billion supplemental (FY 2010), $75.5 billion emergency funding (FY2009)

739.5
*Bank bailout (TARP plus Obama) 1450.0
Net Interest 164.0
TOTAL 2353.5
Total Individual (Federal) Income Tax Revenues (FY 2010) 1061.0
Total Federal Government Revenue (FY 2010) 2381.0

Source: Bureau of the Budget and official statements. See A New Era of Responsibility: The 2010 Budget
See also Office of Management and Budget

* The officially announced bank bailouts to be financed from Treasury Funds. The timing of disbursements could take place over more than one fiscal years fiscal years. The actual value of bank bailout cash injections is substantially higher.

The Budget Deficit

These three categories of expenditure (Defence, Bank Bailout and Interest on the Public Debt) would virtually swallow up the entire 2010 federal government revenue of 2381.0. billion dollars

Moreover, as a basis of comparison, all the revenue accruing from individual federal income taxes ($1.061 trillion), (FY 2010) namely all the money households across America pay annually in the form of federal taxes, will not suffice to finance the handouts to the banks, which officially are of the order of 1.45 trillion. This amount includes the $ 700 billion (granted during FY 2009) under the TARP program plus the proposed $ 750 billion granted by the Obama administration.

While TARP and Obama’s proposed bailout are to be disbursed over Fy 2009 and 2010, they nonetheless represent almost half of total government expenditure (half of Obama’s $3.94 trillion budget for fiscal 2010), which is financed by regular sources of revenue ($2381 billion) plus a staggering $1.75 trillion budget deficit, which ultimately requires the issuing of Treasury Bills and government bonds.

The feasibility of a large short-term expansion of the public debt at a time of crisis is yet another matter, particularly with interest rates at abysmally low levels.

The budget deficit is of the order of 1.75 trillion. Obama acknowledges a 1.3 trillion-dollar budget deficit, inherited from the Bush administration. In actuality, the budget deficit is much larger .

The official figures tend to underestimate the seriousness of the budgetary predicament. The $1.75 trillion dollar budget deficit figure is questionable because the various amounts disbursed under TARP and other related bank bailouts including Obama’s announced $750 billion aid program to financial institutions are not acknowledged in the government’s expenditure accounts.

“The aid hasn’t been requested formally, but appears in a line item “for potential additional financial stabilization efforts,” according to the budget overview. The budget office calculated a $250 billion net cost to taxpayers this year, because it anticipates it would eventually recoup some, though not all, of the money expended to help financial companies.

The funds would come on top of the $700 billion rescue package approved last October by Congress. The White House budgets no money for fiscal 2010 and beyond for such aid.” (Bloomberg, February 27, 2010)

Fiscal Collapse

A major crisis of the federal fiscal structure is occurring. The multibillion dollar allocations to the War Budget and to the Wall Street Bank Bailout program backlash on all other categories of public expenditure.

The Bush administration’s $ 700 billion bailout under the Troubled Asset Relief Program (TARP) was approved by Congress in October. TARP is but the tip of the iceberg. A panoply of bailout allocations in addition to the $ 700 billion were decided upon prior to Obama assuming office. In November, the federal government’s bank rescue program was estimated at a staggering 8.5 trillion dollars, an amount equivalent to more than 60% of the US public debt estimated at 14 trillion (2007). (See table 2 below)

Meanwhile, under the Obama budget proposal, 634 billion dollars are allocated to a reserve fund to finance universal health care. At first sight, it appears to be a large amount. But it is to be spent over a ten year period, — i.e. a modest annual commitment of 63.4 billion.

Public spending will be slashed with a view to curtailing a spiralling budget deficit. Health and education programs will not only remain heavily underfunded, they will be slashed, revamped and privatized. The likely outcome is the outright privatization of public services and the sale of State assets including public infrastructure, urban services, highways, national parks, etc. Fiscal collapse leads to the privatization of the State.

The fiscal crisis is further exacerbated by the compression of tax revenues resulting from decline of the real economy. Unemployed workers do not pay taxes nor do bankrupt firms. The process is cumulative. The solution to the fiscal crisis becomes the cause of further collapse.

Structure of The Public Debt

This large scale appropriation of liquid money assets under the bank bailouts by a handful of financial institutions serves to increase the public debt overnight.

When the US Treasury allocates 700 billion dollars to the Troubled Assets Relief Program, this amount constitutes a budgetary outlay which inevitably must be financed from within the structure of government revenues and expenditures.

Unless all other categories of public expenditure including health, education and social services are slashed, the various outlays under the bank bailout will require running a massive budget deficit which in turn will increase the US public debt.

America is the most indebted country on earth. The US (federal government) public debt is currently of the order of $14 trillion. This does not include mounting public debts at the state and municipal levels.

This US dollar denominated (federal) debt is composed of outstanding treasury bills and government bonds. The public debt, also called “the national debt” is the amount of money owed by the federal government to holders of U.S. debt instruments.

US debt instruments are held by American residents as part of their savings portfolio, companies and financial institutions, US government agencies, foreign governments, individuals in foreign countries. but does not include intergovernmental debt obligations or debt held in the Social Security Trust Fund. Types of securities held by the public include, but are not limited to, Treasury Bills, Notes, Bonds, TIPS, United States Savings Bonds, and State and Local Government Series securities.

The proposed solution becomes the cause of the crisis. The 700 billion bailout under the Troubled Asset Relief Program (TARP) combined with the proposed Obama $750 billion aid to financial services industry is but the tip of the iceberg. A panoply of bailout allocations in addition to the 700 billion have been decided upon.

Table 2

The Bush Administration’s ” Bank Bailout”

The government’s bank rescue program under the Bush administration was estimated at a staggering 8.5 trillion dollars, an amount equivalent to 60% of the Total Gross Federal debt of 14.078 trillion (2010) (See Table 2 above). This amount does not include the “aid” to financial institutions proposed by the Obama administration, including an additional 750 billion dollars in Obama’s February 2009 budget proposal. The size of these allocations of liquid assets endangers the very structures of the fiscal and monetary system.

The total of Bush bank bailouts (8.5 trillion) can be broken down into funds granted by the Federal Reserve, the Treasury, the Federal Deposit Insurance Corporation and the Federal Housing Authority.

The handouts to the financial institutions financed out of Treasury are government expenditures, to be met either through tax revenues or through the emission of public debt instruments.

The disbursements under TARP are categorized by the Bureau of the Budget as part of “a mandatory program” under an Act of the US Congress.. The Treasury’s liability, which includes the controversial Troubled Assets Relief Program, was estimated in November 2008 at 1.1 trillion dollars. (See Table 2) Further Treasury allocations, which serve to heighten the burden of the public debt have been envisaged by the Obama administration

Spiralling Public Debt Crisis

Is the Treasury in a position to finance this mounting budget deficit officially tagged at 1.75 billion through the emission of Treasury bills and government bonds?

The largest budget deficit in US history coupled with the lowest interest rates in US history: With the Fed’s ” near zero” percent discount rate, the markets for US dollar denominated government bonds and Treasury bills are in straightjacket. Moreover, the essential functions of savings (which is central to the functioning of a national economy) is in crisis. .

Who wants to invest in US government debt? What is the demand for Treasury bills at exceedingly low interest rates?

Table 3 Interest Rates in Percent

Treasury securities Updated 2/25/2009
This week Month ago Year ago
One-Year Treasury Constant Maturity 0.64 0.43 2.10
91-day T-bill auction avg disc rate 0.300 0.150 2.160
182-day T-bill auction avg disc rate 0.495 0.350 2.070
Two-Year Treasury Constant Maturity 0.95 0.77 2.04
Five-Year Treasury Constant Maturity 1.79 1.58 2.89
Ten-Year Treasury Constant Maturity 2.75 2.56 3.85
One-Year MTA 1.633 1.823 4.326
One-Year CMT (Monthly) 0.44 0.49 2.71

Source Bankrate.com


The market for US dollar denominated debt instruments is potentially at a standstill, which means that the Treasury lacks the ability to finance its mammoth budget deficit through public debt operations, leading the entire budgetary process into a quandary.

The question is whether China and Japan will continue to purchase US dollar denominated debt instruments. Washington is running a public relations campaign to lure Asian investors into buying T-bills and US government bonds. .

With the markets for US dollar denominated debt (both domestically and internationally) in crisis, further pressure will be exerted on the Treasury to slash (civilian) public expenditure to the bone, exact user fees for public services and sell off public assets, including State infrastructure and institutions. In all likelihood, this crisis is leading us to the privatization of the State, where activities hitherto under government jurisdiction will be transferred into private hands.

Who will be buying State assets at rock bottom prices? The financial elites, which are also the recipients of the bank bailout.

Consolidation of the Banks

A massive amount of liquidity has been injected into the financial system, from the bailouts but also from pension funds, individual savings, etc.

The stated objective of the bank bailout programs is to alleviate the banks’ burden of bad debts and non-performing loans. In actuality what is happening is that these massive amounts of money are being used by a handful of institutions to consolidate their position in global banking.

The exposure of the banks, largely the result of derivative trade, is estimated in the tens of trillions of dollars, to the extent that the amounts and guarantees granted by the Treasury and the Fed will not resolve the crisis. Nor are they intended to resolve the crisis.

The mainstream media suggests that the banks are being nationalized as a result of TARP, In fact, it is exactly the opposite: the State is being taken over by the banks, the State is being privatized. The establishment of a Worldwide unipolar financial system is part of the broader project of the Wall Street financial elites to establish the contours of a world government.

In a bitter irony, the recipients of the bailout under TARP and Obama’s proposed $750 billion aid to financial institutions are the creditors of the federal government. The Wall Street banks are the brokers and underwriters of the US public debt, although they hold only a portion of the debt, they transact and trade in US dollar denominated public debt instruments Worldwide.

They act as creditors of the US State. They evaluate the creditworthiness of the US government, they rank the public debt through Moody’s and Standard and Poor. They control the US Treasury, the Federal Reserve Board and the US Congress. They oversee and dictate fiscal and monetary policy, ensuring that the State acts in their interest.

Since the Reagan era, Wall Street dominates most areas of economic and social policy. It sets the budgetary agenda, ensuring the curtailment of social expenditures. Wall Street preaches balanced budgets but the practice has been lobbying for the elimination of corporate taxes, the granting of handouts to corporations, tax write-offs in mergers and acquisitions etc, all of which lead to a spiralling public debt.

Circular and Contradictory Relationship

The Federal Reserve system is a privately owned central bank. While the Federal Reserve Board is a government body, the process of money creation is controlled by the 12 Federal Reserve Banks, which are privately owned.

The shareholders of the Federal Reserve banks (with the New York Federal Reserve Bank playing a dominant role) are among America’s most powerful financial institutions.

While the Federal Reserve can create money “out of thin air”, the multibillion outlays of the Treasury (including the TARP program) will require the emission of public debt in the form of Treasury Bills and government bonds.

US financial institutions oversee the US public debt. They are involved in the sale of treasury bills and government bonds on financial markets in the US and around the World. But they also hold part of the public debt. In this regard, they are the creditors of the US government. Part of this increased public debt required to rescue the banks will be financed or brokered by the same financial institutions which are the object of the bank rescue plan.

We are dealing with a pernicious circular relationship. When the banks pressured the Treasury to assist them in the form of a major bank rescue operation, it was understood from the outset that the banks would in turn assist the Treasury in financing the handouts of which they are the recipients.

To finance the bank bailout, the Treasury needs to run a massive budget deficit, which in turn requires a staggering increase of the US public debt.

Public opinion has been misled. The US government is in a sense financing its own indebtedness: the money granted to the banks is in part financed by borrowing from the banks.

The banks lend money to the government and with the money they lend the government, the Treasury finances the bailout. In turn, the banks impose conditionalities on the management of the US public debt. They dictate how the money should be spent. They impose fiscal responsibility, they dictate massive cuts in social expenditures which result in the collapse and/or privatization of public services. They impose the privatization of urban infrastructure, roads, sewer and water systems, public recreational areas, everything is up for privatization.

The recipient banks are the beneficiaries as well as the creditors. As creditors, they will oblige the government a) to slash expenditures b) to run up the public debt through the issuing of treasury bills and government bonds.

This public debt crisis is all the more serious because the US federal government does not control monetary policy. All public debt operations go through the Federal reserve, which is in charge of monetary policy, acting on behalf of private financial interests. The government as such has no authority over money creation. This means that public debt operations essentially serve the interests of the banks.

Continuity from Bush to Obama

The Obama stimulus program constitutes a continuation of the Bush administration’s bank bailout packages. The proposed policy solution to the crisis becomes the cause, ultimately resulting in further real economy bankruptcies and a corresponding collapse of the standard of living of Americans.

Both the Bush and Obama bank bailouts are intended to come to the rescue of troubled financial institutions, to ensure the payment of “inter-bank” debt operations. In practice, large amounts of money transit through the banking system, from the banks to the hedge funds, to offshore banking havens and back to the banks.

The government and the media tend to focus on the ambiguous notion of ” inter-bank debts”. The identity of the creditors is rarely mentioned.

Multi-billion dollar transfers are conducted electronically from one financial entity to another. Where is the money going? Who is collecting these multibillion debts, which are in large part the consequence of financial manipulation and derivative trade?

There are indications that the financial institutions are transferring billions of dollars into their affiliated hedge funds. From these hedge funds they can then channel money capital towards the acquisition of real assets.

Through what circuitous financial mechanisms were these debts created? Where is the bailout money going? Who is cashing in on the multibillion dollar government bailout money? This process is contributing to an unprecedented concentration of private wealth.

Concluding Remarks

Financial manipulation is an integral part of the New World Order. It constitutes a powerful means to accumulate wealth. Under the present political arrangement, those responsible for monetary policy are quite deliberately serving the interests of the financiers, to the detriment of working people, leading to economic dislocation, unemployment and mass poverty.

This article has focussed on how financial manipulation has served to shatter the structure of US public expenditure.

More generally, this restructuring of global financial markets and institutions (alongside the pillage of national economies) has enabled the accumulation of vast amounts of private wealth – a large portion of which has been amassed as a result of strictly speculative transactions.

This critical drain of billions of dollars of household savings and state tax revenues paralyses the functions of government spending and spurs the accumulation of a public debt, which can no longer be be financed through the emission of US dollar denominated debt.

What we are dealing with is the fraudulent transfer and confiscation of lifelong savings and pension funds, the fraudulent appropriation of tax revenues to finance the bank bailouts, etc. To understand what has happened: follow the money trail of electronic transfers with a view to establishing where the money has gone. What is at stake is the outright criminalization of the financial system:financial theft” on an unprecedented scale.

The monetary system, which is integrated into the State budgetary process has been destabilized. The fundamental relationship between the monetary system and the real economy is in crisis.

The creation of money “out of thin air” threatens the value of the US dollar as an international currency. Similarly, the financing of a mammoth US budget deficit through dollar denominated debt instruments is impaired as a result of exceedingly low interest rates. Moreover, the process of household savings is undermined with interest rates close to zero.

What we have dealt with in this article is one central aspect of an evolving process of global financial collapse.

The international payments system is in crisis. The economic prospects are terrifying. Bankruptcies in the US, Canada, the European Union are occurring at an alarming rate. Country level exports have collapsed, leading to a contraction of international trade Reports from the Asian economies indicate a massive increase in unemployment. In China’s Pearl River basin in Southern Guangdong province’s industrial export processing economy, some 700,000 workers were laid off in January. (China Morning Post, Feb 6, 2009). In Japan, industrial output has collapsed by more than 20 percent since December. In the Philippines, a country of 90 million people, exports collapsed by more than 40 percent in December.

Financial Disarmament

There are no solutions under the prevailing global financial architecture. Meaningful policies cannot be achieved without radically reforming the workings of the international banking system.

What is required is an overhaul of the monetary system including the functions and ownership of the central bank, the arrest and prosecution of those involved in financial fraud both in the financial system and in governmental agencies, the freeze of all accounts where fraudulent transfers have been deposited, the cancellation of debts resulting from fraudulent trade and/or market manipulation.

People across the land, nationally and internationally, must mobilize. This struggle to democratise the financial and fiscal apparatus must be broad-based and democratic encompassing all sectors of society at all levels, in all countries. What is ultimately required is to disarm the financial establishment:

-confiscate those assets which were obtained through fraud and financial manipulation.

-restore the savings of households through reverse transfers

-return the bailout money to the Treasury, freeze the activities of the hedge funds. .

- freeze the gamut of speculative transactions including short-selling and derivative trade.



ANNEX

Documents


A New Era of Responsibility: The 2010 Budget

The tables contained in Annex can also be consulted by clicking:

Summary Tables

See also:

http://www.budget.gov

http://www.gpoaccess.gov/usbudget/fy10/pdf/fy10-newera.pdf




The Economic Depression was predicted in this 2002 best-seller

The Globalization of Poverty and the New World Order



How Did It Happen and What are the Ugly Consequences?


This article will focus largely on the Fed, because the Fed is the “financial land-mine”.

How long can someone who has stepped on a landmine, remain standing – hours, days? Eventually, when he is exhausted and his legs give way, the mine will just explode!

The shadow banking system has not only stepped on the land-mine, it is carrying such a heavy load (trillions of toxic wastes) that sooner or later it will tilt, give way and trigger off the land-mine![1]

In a recent article, I referred to the remarks of British Prime Minister Gordon Brown and President Obama calling for the shadow banking system to be outlawed.

Even if the call was genuine, it is too late. The land-mine has been triggered and the explosion cannot be averted under any circumstances.

The only issue is the extent of the damage to the global economy and how long it will take for the world to recover from this fiasco – a financial madness that has no precedent. The great depression is “Mary Poppins” in comparison!

The idea of a central bank going bankrupt is not that outlandish. I am by no means the first author who has given this stark warning. What underlies this crisis (which I initially examined in an article in December 2006) is the potential collapse of the global banking system, specifically the Shadow Money-Lenders.

Nouriel Roubini, the New York University professor said [2]:

“The process of socialising the private losses from this crisis has moved many of the liabilities of the private sector onto the books of the sovereign. At some point a sovereign bank may crack, in which case, the ability of the government to credibly commit to act as a backstop for the financial system – including deposit guarantees – could come unglued.

Please read the underlined words again. “Sovereign bank” means central bank. When a central bank “cracks” i.e. becomes insolvent, “all hell breaks lose”, because as the professor correctly pointed out, “any government guarantees will ring hollow and will be useless”.

If a central bank goes belly up, it is as good as the government going bankrupt. Period!

In another article, Roubini admitted that the pressure on “the financial land-mine” is totally unbearable. He wrote: “The US Financial system is effectively insolvent”. It follows that if the financial system is bankrupt, it is a matter of time before the “sovereign bank” goes belly up. This is a given!

He stated further that:

“Thus, the U.S. financial system is de facto nationalized, as the Federal Reserve has become the lender of first and only resort rather than the lender of last resort, and the U.S. Treasury is the spender and guarantor of first and only resort. The only issue is whether banks and financial institutions should also be nationalized de jure.

“AIG which lost $62 billion in the fourth quarter and $99 billion in all of 2008 is already 80% government-owned. With such staggering losses, it should be formally 100% government-owned. And now the Fed and Treasury commitments of public resources to the bailout of the shareholders and creditors of AIG have gone from $80 billion to $162 billion.

“Given that common shareholders of AIG are already effectively wiped out (the stock has become a penny stock), the bailout of AIG is a bailout of the creditors of AIG that would now be insolvent without such a bailout. AIG sold over $500 billion of toxic credit default swap protection, and the counter-parties of this toxic insurance are major U.S. broker-dealers and banks.

“News and banks analysts’ reports suggested that Goldman Sachs got about $25 billion of the government bailout of AIG and that Merrill Lynch was the second largest benefactor of the government largesse. These are educated guesses, as the government is hiding the counter-party benefactors of the AIG bailout. (Maybe Bloomberg should sue the Fed and Treasury again to have them disclose this information.)

“But some things are known: Goldman’s Lloyd Blankfein was the only CEO of a Wall Street firm who was present at the New York Fed meeting when the AIG bailout was discussed. So let us not kid each other: The $162 billion bailout of AIG is a nontransparent, opaque and shady bailout of the AIG counter-parties: Goldman Sachs, Merrill Lynch and other domestic and foreign financial institutions.

“So for the Treasury to hide behind the “systemic risk” excuse to fork out another $30 billion to AIG is a polite way to say that without such a bailout (and another half-dozen government bailout programs such as TAF, TSLF, PDCF, TARP, TALF and a program that allowed $170 billion of additional debt borrowing by banks and other broker-dealers, with a full government guarantee), Goldman Sachs and every other broker-dealer and major U.S. bank would already be fully insolvent today.

“And even with the $2 trillion of government support, most of these financial institutions are insolvent, as delinquency and charge-off rates are now rising at a rate – given the macro outlook -that means expected credit losses for U.S. financial firms will peak at $3.6 trillion. So, in simple words, the U.S. financial system is effectively insolvent.”

McClatchy newspaper reported (03/08/2009) bad news affecting the banks:

“America’s five largest banks, which already have received $145 billion in taxpayer bailout dollars, still face potentially catastrophic losses from exotic investments if economic conditions substantially worsen, their latest financial reports show.

Citibank, Bank of America, HSBC Bank USA, Wells Fargo Bank and J.P. Morgan Chase reported that their “current” net loss risks from derivatives — insurance-like bets tied to a loan or other underlying asset — surged to $587 billion as of Dec. 31. Buried in end-of-the-year regulatory reports that McClatchy has reviewed, the figures reflect a jump of 49 percent in just 90 days.

“The disclosures underscore the challenges that the banks face as they struggle to navigate through a deepening recession in which all types of loan defaults are soaring.

“The government has since committed $182 billion to rescue AIG and, indirectly, investors on the other end of the firm’s swap contracts. AIG posted a fourth quarter 2008 loss last week of more than $61 billion, the worst quarterly performance in U.S. corporate history.

“The five major banks, which account for more than 95 percent of U.S. banks’ trading in this array of complex derivatives, declined to say how much of the AIG bailout money flowed to them to make good on these contracts.

“The banks’ quarterly financial reports show that as of Dec. 31:

— J.P. Morgan had potential current derivatives losses of $241.2 billion, outstripping its $144 billion in reserves, and future exposure of $299 billion.

— Citibank had potential current losses of $140.3 billion, exceeding its $108 billion in reserves, and future losses of $161.2 billion.

— Bank of America reported $80.4 billion in current exposure, below its $122.4 billion reserve, but $218 billion in total exposure.

HSBC Bank USA had current potential losses of $62 billion, more than triple its reserves, and potential total exposure of $95 billion.

— San Francisco-based Wells Fargo, which agreed to take over Charlotte-based Wachovia in October, reported current potential losses totaling nearly $64 billion, below the banks’ combined reserves of $104 billion, but total future risks of about $109 billion.

“Kopff, the bank shareholders’ expert, said that several of the big banks’ risks are so large that they are “dead men walking.”

Berkshire Hathaway Chairman, Warren Buffett is so livid by the sheer magnitude of the financial mess that he said:

“These instruments [derivatives] have made it almost impossible for investors to understand and analyze our largest commercial banks and investment banks . . . When I read the pages of ‘disclosure’ in (annual reports) of companies that are entangled with these instruments, all I end up knowing is that I don’t know what is going on in their portfolios. And then I reach for some aspirin.”

The above bad news refers to the losses and potential losses that the big banks have suffered and will suffer in the near future.But what is overlooked by many financial analysts is that these very same derivative products have caused another financial organ failure. And there is no way that the said organ can be resuscitated to its former state of health.

The Repo Market is gridlocked!

There has been an incestuous relationship between the traditional banking system and the shadow banking system and the link that joined the two together is the Repo Market.[Repurchase Market]

This is in fact the weakest link in the entire financial system.
This is a very technical subject and I seek your indulgence and patience when reading the remaining part of this article. The gridlock of the repo market is the basis for my assertion that over and above the aforesaid dire financial facts, it is the major contributing factor to the bankruptcy of the Federal Reserve!

I want to use a simple analogy. This will make the issue easier to understand.

Picture a one-inch diameter thick rope. Such a rope is made up of a few strands of narrower ropes, say 1/10th inch which are twined together to make the thick one-inch diameter rope.

Picture again that all the outer strands have been burnt away, and what remains is the middle strand, still lifting the weight. But this strand cannot on its own, lift such a weight and sooner or later, it will snap. When that happens, the weight will come crashing down!

The middle strand is the repo market.

Alternatively, you can use the analogy that the repo market is the heart that pumps the blood (the cash flow). The financial system is the body and it has suffered a massive heart attack!

What is the repo market?

The repo market is the market whereby all financial institutions (regulated and unregulated) invariably go to obtain financing to meet reserve requirements, bridging finance, to lend or purchase securities, to hedge and or to invest on short-term basis.

It used to be that mainly US Treasuries (bear this in mind at all times) were used as security for Repo transactions, as it is considered as most secure i.e. as good as cash since it is backed by the credit of the US government!

This requirement is no longer the case. More of this issue later.

The Nature of Repo Transactions

In repo transactions, securities are exchanged for cash with an agreement to repurchase the securities at a future date. The securities serve as collateral for what is effectively a cash loan. A distinguishing feature of repos is that they can be used either to obtain funds or to obtain securities. As repos are short-maturity collateralized instruments, repo markets have strong linkages with securities markets, derivative markets and other short term markets such as inter-bank and money markets. [3]

Like other financial markets, repo markets are subject to credit risks, operational risks and liquidity risks. However, what distinguishes the credit risks on repos from that associated with uncollateralized instruments is that repos credit exposures arise from volatility (or market risk) in the value of collateral. Bear this in mind at all times.

Repos allow institutions to use leverage to take larger positions in financial markets which could add to systemic risks. Bear this in mind at all times.

And because of the close linkages between repo markets and securities markets, any shocks will be transmitted quickly, resulting in a gridlock. Bear this in mind at all times.


Transactions covered by definition of repos are as follows:

(A) Repurchase Agreement

A repurchase agreement involves the sale of an asset under an agreement to repurchase the asset from the same counter-party. Interest is paid on the repurchase agreement by adjusting the sale and purchase price. A reverse repo is the purchase of an asset with an agreement to re-sell the same or a similar asset.

A hold-in-custody repurchase agreement is a trade whereby the repoer (the borrower of cash) continues to hold the collateralizing securities in custody for the lender of cash. The risks are obvious!

A deliver-out repurchase agreement is where securities are delivered to the cash lender for custody in exchange for cash.

A tri-party repurchase agreement is similar to a deliver-out repurchase agreement, except that the security is placed in the custody of a third-party entity. The third-party ensures that the security meets the cash lender’s requirements and provides valuation and margining services. This is the primary form of repurchase agreement for securities dealers in the United States. Bank of New York and JP Morgan Chase are the two main custodians or clearing banks in the US and supervise the vast majority of the tri-party repos. Bear this in mind at all times.

(B) Sell/Buy-Back Agreement

A sell buy-back is two distinct outright cash market trades, one for forward settlement. The forward price is set relative to the spot price to yield a market rate of return.

(C) Securities Lending

This is where the owner of the security lends them to another person in return for a fee. The borrower of the security is contractually obliged to redeliver a like quantity of the same securities, or return precisely the same securities.

Repos can be of any duration but are most commonly over-night loans. Repos longer than over-night are called Term Repos. There are also Open Repos which are transactions which can be terminated by both parties on a day’s notice.


The largest players of repos and reverses are the dealers in government securities. There are about 20 primary dealers recognised by the Fed which are authorised to bid for new-issued treasury securities for resale in the market. The dealers are highly leveraged, 50 to 100 times their own capital. To finance the purchase of treasury securities, the dealers need to have repo monies in large amounts on a continuing basis. The institutions that supply such huge funds in the repo market are money funds, large corporations, state and local governments and foreign central banks.

The Repo Market and the Financial Crisis

As stated earlier when the repo market first started, US treasuries were the preferred security. But when financial engineering exploded and many financial products (i.e. CDOs) were rated AAA by rating agencies, these securities were also traded as described above in the repo market. This was when problems started.

According to Gary Gorton [4], the repo market before the crisis was estimated to be worth a whopping $12 trillion as compared to the total assets in the entire US banking system of $10 trillion.

The former CEO of Federal Reserve Bank of New York (NYFRB) and now the US Treasury Secretary, Tim Geithner observed in 2008:

“The structure of the financial system changed fundamentally during the boom, with dramatic growth in the share of assets outside the traditional banking system. This non-bank financial system grew to be very large, particularly in money and funding markets.

“This parallel system financed some of these very assets on a very short term basis in the bilateral or tri-party repo markets. As the volume of activity in repo markets grew, the variety of assets financed in this manner expanded beyond the most highly liquid securities to include less liquid securities, as well. Nonetheless, these assets were assumed to be readily sellable at fair values, in part because assets with similar credit ratings had generally been tradable during past periods of financial stress. And the liquidity supporting them was assumed to be continuous and essentially frictionless, because it had been so for a long time.

“The scale of long term risky and relatively illiquid assets financed by very short-term liabilities made many of the vehicles and institutions in this parallel financial system vulnerable to a classic type run, but without the protection such as deposit insurance that the banking system has in place to reduce such risks.”

Economic historians will argue for another century as to the cause for the run on the repo market. The collapse of Bear Stearns is as good a starting point as any. When the market discovered that its securities were duds, pure junk, shock waves ripped through the system.Recall that I had mentioned earlier that Federal Bank of New York and JP Morgan Chase were the primary clearing banks for repos.

The Fed’s rescue of Bear Stearns through JP Morgan was not so much to save the former but rather to shore up the “clearing system” of the repos for which JP Morgan Chase and the Bank of New York were the main pillars. One of the functions of a “clearing bank” for repos is to value and match securities tendered for cash borrowings. If Bear Stearns securities are now valued as junks, the integrity of JP Morgan and Federal Bank of New York as clearing banks in this market is as good as zero! And bearing in mind that the five major investment banks in the US rely heavily on the repo market for their funding, any gridlock in this part of the shadow banking system would tear wide open the entire banking system, including the traditional counter-part.

Hence, the FED intervention by the creation of the Primary Dealer Credit Facility (PDCF) which was in effect the backstop for all investment banking using tri-party repos!

This was what Bernanke said:


“We have been working with market participants to develop a contingency plan should there ever occur a loss of confidence in either of the two clearing banks that facilitate the settlement of tri-party repos.”

Louis Crandall, economist at Wrightson ICAP observed:

“The vulnerability of the tri-party repo system has been a recurring theme among Federal Reserve and Treasury officials in recent weeks.”

The inherent weakness of tri-party repos is that the counter-party risks of billions worth of funding agreements are shouldered by essentially two players – Federal Bank of New York and JP Morgan Chase.

Yet, way back then, they were held up as rock solid. It is almost hilarious to read the then advert of the Federal Bank of New York as to their expertise and service:


“Sophisticated collateral selection: enforce diversification and credit quality; control adequacy, volatility & liquidity.

“Cutting edge infrastructure: economies of scale facilitate extensive data warehousing, access to more asset classes and markets, auto-substitution, auto-allocation & optimisation technology, same day reporting.

“Introduction to new counterparts: A Global Collateral Clearing House.”


Panic swept across the entire repo market.

No securities were considered safe enough for repos except US treasuries.

Fundings in the repo market grind to a halt.

Market players withdrew funds and began hoarding treasuries.

The rest who own structured products were slaughtered.

I would like to quote Gary Gorton again:

“Imagine a firm that is levered 30:1, by borrowing in the repo market. If the haircut [5] doubles, or goes from zero to a positive amount, the required deleveraging is massive! Most investment banks were levered 30:1, equivalent to about a 3 per cent haircut. If the haircut rises to 6 per cent, at least half the assets will have to be sold.

“Another sign of trouble is a ‘repo fail’. A ‘repo fail’ occurs when one side of the agreement fails to abide by the contract. [Fail to deliver the security under the repurchase agreement.]

“Dealer banks would not accept collateral because they rightly believed that if they had to seize the collateral should the counter-party fail, then there would be no market in which to sell it. This was due to the absence of buyers because of the deleveraging. This led to an absence of prices for these securities. If the value cannot be determined because there is no market – no liquidity or there is the concern that if the asset is seized by the lender, it will not be saleable at all, then the dealer will not engage in repo. Repo dealers report that there was uncertainty about whether to believe the ratings on these structured products, and in a very fast moving environment, the response was to pull back from accepting anything structured. If no one would accept structured products for repo, then these bonds could not be traded – and then no one would want to accept them in repo transactions.”

This change led to a sharp increase in the demand for government securities for repo transactions, which was compounded by significantly higher safe-haven demand for US Treasuries and the increased unwillingness to lend such securities in repo transactions. As the crisis unfolded, this combination resulted in US government collateral becoming extremely scarce. [6]

I will now turn to the issue of the FED’s solvency.

As has been observed, the Fed intervened aggressively to check the run on the repo market. Various measures were taken, but in my view the most dangerous was the widening of the collaterals which the Fed was willing to accept to secure funding of the players in the repo market. The Fed also intervened by lending a huge chunk of its US treasuries in exchange for junks to facilitate credit expansion.

In the result, what happened was that the Fed’s present balance sheet of approximately $2 trillion is made up mostly of junk securities.

The Fed is no different from banks in that confidence in the quality of its assets is critical and that if and when the market recovers, there is in fact a market for the junk assets that it took on to unravel the gridlock in the financial markets.

By way of analogy, if your high street bank’s balance sheet is made up of junk, what would you do? There are just not enough assets to meet its liabilities.

But of course, one can argue that the Fed is not your high street bank. It is the central bank of the mighty USA. It will always be able to “print money” or “digitalise” money and keep the markets going.

But beware that the Federal Reserve Note is mere paper, fiat money which cannot be redeemed for anything tangible such as gold. And although it is stated boldly in the notes issued – “In God we trust” – you and I are not actually placing our trust in God when accepting the Federal Reserve Notes as “money”.

When Joe Six-Packs realises that the Federal Reserve Note is not even secured by US treasuries and or the FED has real tangible assets, but its balance sheet is littered with junks and toxic waste, there will be a run on the Fed i.e. when Americans and foreigners no longer have faith in the Federal Reserve Notes as “money”.

If confidence could vaporise in a second and cause a stampede in what was once considered solid security, the triple A rated bonds in the repo and money markets, the same confidence that is now reposed in the Federal Reserve Notes can likewise disappear into the memory hole.

All these years, the con was maintained by the Fed that it was solid because it has on its balance sheet over $800 billion of US treasuries i.e. its notes “were so-called backed by these treasuries”. It could sell its treasuries in the repo market for cash and thereby control the money flows in the economy and vice versa.

In their subconscious mind, Americans and stupid foreign central banks and their executives (brain-washed by the Chicago School of Economics) somehow believe in the infallibility of the Fed.

Now it has been exposed that the Fed’s “assets” comprise of junk bonds and toxic wastes.

The Emperor has no clothes!

Paul Volcker, former Chairman of the Federal Reserve may have given the ultimate epitaph: “The bright new financial system – for all its talented participants, for all its rich rewards – has failed the test of the market place.”

And it is any wonder that Professor Nouriel Roubini declared:


“The process of socialising the private losses from this crisis has already moved many liabilities of the private sector onto the books of the sovereign. At some point a sovereign bank may crack, in which case the ability of the government to credibly commit to act as a backstop for the financial system – including deposit guarantees – could come unglued


In my opinion, the Fed has already become “unglued”. Whatever guarantees given to secure the indebtedness of CitiGroup and others to prevent a run on these banks are useless.

It is bankrupt!


End Notes

[1] There are two banking systems in existence today. The Traditional Banking System – i.e. High Street banks and the Shadow Banking System. But the players in both the systems overlap because, the major banks of the traditional system helped spawn the shadow banking system. In fact they are the key players in the use of the so-called “new financial products, the CDOs, CLOs, MBS” etc and which have now turned toxic – worthless, junk to be exact.
[2] See my website archives: Roubini Warns of Sovereign Bank Failure – February 20, 2009 www.theage.com.au
[3] See: Implications of repo markets for central banks, CGFS Publications No 10, March 1999.
[4] Gary Gorton, Information, Liquidity, and the (Ongoing) Panic of 2007 prepared for the Jackson Hole Conference 2008
[5] “haircut” here refers to the rate payable for the cash loan or the margin.
[6] Peter Hordahl and Martin R King, Developments in repo markets during the financial turmoil BIS Quarterly Review, December 2008

Matthias Chang is a prominent barrister, author and analyst of the New World Order based in Malaysia.
His website:
www.FutureFastForward.com

How Did It Happen and What are the Ugly Consequences?


This article will focus largely on the Fed, because the Fed is the “financial land-mine”.

How long can someone who has stepped on a landmine, remain standing – hours, days? Eventually, when he is exhausted and his legs give way, the mine will just explode!

The shadow banking system has not only stepped on the land-mine, it is carrying such a heavy load (trillions of toxic wastes) that sooner or later it will tilt, give way and trigger off the land-mine![1]

In a recent article, I referred to the remarks of British Prime Minister Gordon Brown and President Obama calling for the shadow banking system to be outlawed.

Even if the call was genuine, it is too late. The land-mine has been triggered and the explosion cannot be averted under any circumstances.

The only issue is the extent of the damage to the global economy and how long it will take for the world to recover from this fiasco – a financial madness that has no precedent. The great depression is “Mary Poppins” in comparison!

The idea of a central bank going bankrupt is not that outlandish. I am by no means the first author who has given this stark warning. What underlies this crisis (which I initially examined in an article in December 2006) is the potential collapse of the global banking system, specifically the Shadow Money-Lenders.

Nouriel Roubini, the New York University professor said [2]:

“The process of socialising the private losses from this crisis has moved many of the liabilities of the private sector onto the books of the sovereign. At some point a sovereign bank may crack, in which case, the ability of the government to credibly commit to act as a backstop for the financial system – including deposit guarantees – could come unglued.

Please read the underlined words again. “Sovereign bank” means central bank. When a central bank “cracks” i.e. becomes insolvent, “all hell breaks lose”, because as the professor correctly pointed out, “any government guarantees will ring hollow and will be useless”.

If a central bank goes belly up, it is as good as the government going bankrupt. Period!

In another article, Roubini admitted that the pressure on “the financial land-mine” is totally unbearable. He wrote: “The US Financial system is effectively insolvent”. It follows that if the financial system is bankrupt, it is a matter of time before the “sovereign bank” goes belly up. This is a given!

He stated further that:

“Thus, the U.S. financial system is de facto nationalized, as the Federal Reserve has become the lender of first and only resort rather than the lender of last resort, and the U.S. Treasury is the spender and guarantor of first and only resort. The only issue is whether banks and financial institutions should also be nationalized de jure.

“AIG which lost $62 billion in the fourth quarter and $99 billion in all of 2008 is already 80% government-owned. With such staggering losses, it should be formally 100% government-owned. And now the Fed and Treasury commitments of public resources to the bailout of the shareholders and creditors of AIG have gone from $80 billion to $162 billion.

“Given that common shareholders of AIG are already effectively wiped out (the stock has become a penny stock), the bailout of AIG is a bailout of the creditors of AIG that would now be insolvent without such a bailout. AIG sold over $500 billion of toxic credit default swap protection, and the counter-parties of this toxic insurance are major U.S. broker-dealers and banks.

“News and banks analysts’ reports suggested that Goldman Sachs got about $25 billion of the government bailout of AIG and that Merrill Lynch was the second largest benefactor of the government largesse. These are educated guesses, as the government is hiding the counter-party benefactors of the AIG bailout. (Maybe Bloomberg should sue the Fed and Treasury again to have them disclose this information.)

“But some things are known: Goldman’s Lloyd Blankfein was the only CEO of a Wall Street firm who was present at the New York Fed meeting when the AIG bailout was discussed. So let us not kid each other: The $162 billion bailout of AIG is a nontransparent, opaque and shady bailout of the AIG counter-parties: Goldman Sachs, Merrill Lynch and other domestic and foreign financial institutions.

“So for the Treasury to hide behind the “systemic risk” excuse to fork out another $30 billion to AIG is a polite way to say that without such a bailout (and another half-dozen government bailout programs such as TAF, TSLF, PDCF, TARP, TALF and a program that allowed $170 billion of additional debt borrowing by banks and other broker-dealers, with a full government guarantee), Goldman Sachs and every other broker-dealer and major U.S. bank would already be fully insolvent today.

“And even with the $2 trillion of government support, most of these financial institutions are insolvent, as delinquency and charge-off rates are now rising at a rate – given the macro outlook -that means expected credit losses for U.S. financial firms will peak at $3.6 trillion. So, in simple words, the U.S. financial system is effectively insolvent.”

McClatchy newspaper reported (03/08/2009) bad news affecting the banks:

“America’s five largest banks, which already have received $145 billion in taxpayer bailout dollars, still face potentially catastrophic losses from exotic investments if economic conditions substantially worsen, their latest financial reports show.

Citibank, Bank of America, HSBC Bank USA, Wells Fargo Bank and J.P. Morgan Chase reported that their “current” net loss risks from derivatives — insurance-like bets tied to a loan or other underlying asset — surged to $587 billion as of Dec. 31. Buried in end-of-the-year regulatory reports that McClatchy has reviewed, the figures reflect a jump of 49 percent in just 90 days.

“The disclosures underscore the challenges that the banks face as they struggle to navigate through a deepening recession in which all types of loan defaults are soaring.

“The government has since committed $182 billion to rescue AIG and, indirectly, investors on the other end of the firm’s swap contracts. AIG posted a fourth quarter 2008 loss last week of more than $61 billion, the worst quarterly performance in U.S. corporate history.

“The five major banks, which account for more than 95 percent of U.S. banks’ trading in this array of complex derivatives, declined to say how much of the AIG bailout money flowed to them to make good on these contracts.

“The banks’ quarterly financial reports show that as of Dec. 31:

— J.P. Morgan had potential current derivatives losses of $241.2 billion, outstripping its $144 billion in reserves, and future exposure of $299 billion.

— Citibank had potential current losses of $140.3 billion, exceeding its $108 billion in reserves, and future losses of $161.2 billion.

— Bank of America reported $80.4 billion in current exposure, below its $122.4 billion reserve, but $218 billion in total exposure.

HSBC Bank USA had current potential losses of $62 billion, more than triple its reserves, and potential total exposure of $95 billion.

— San Francisco-based Wells Fargo, which agreed to take over Charlotte-based Wachovia in October, reported current potential losses totaling nearly $64 billion, below the banks’ combined reserves of $104 billion, but total future risks of about $109 billion.

“Kopff, the bank shareholders’ expert, said that several of the big banks’ risks are so large that they are “dead men walking.”

Berkshire Hathaway Chairman, Warren Buffett is so livid by the sheer magnitude of the financial mess that he said:

“These instruments [derivatives] have made it almost impossible for investors to understand and analyze our largest commercial banks and investment banks . . . When I read the pages of ‘disclosure’ in (annual reports) of companies that are entangled with these instruments, all I end up knowing is that I don’t know what is going on in their portfolios. And then I reach for some aspirin.”

The above bad news refers to the losses and potential losses that the big banks have suffered and will suffer in the near future.But what is overlooked by many financial analysts is that these very same derivative products have caused another financial organ failure. And there is no way that the said organ can be resuscitated to its former state of health.

The Repo Market is gridlocked!

There has been an incestuous relationship between the traditional banking system and the shadow banking system and the link that joined the two together is the Repo Market.[Repurchase Market]

This is in fact the weakest link in the entire financial system.
This is a very technical subject and I seek your indulgence and patience when reading the remaining part of this article. The gridlock of the repo market is the basis for my assertion that over and above the aforesaid dire financial facts, it is the major contributing factor to the bankruptcy of the Federal Reserve!

I want to use a simple analogy. This will make the issue easier to understand.

Picture a one-inch diameter thick rope. Such a rope is made up of a few strands of narrower ropes, say 1/10th inch which are twined together to make the thick one-inch diameter rope.

Picture again that all the outer strands have been burnt away, and what remains is the middle strand, still lifting the weight. But this strand cannot on its own, lift such a weight and sooner or later, it will snap. When that happens, the weight will come crashing down!

The middle strand is the repo market.

Alternatively, you can use the analogy that the repo market is the heart that pumps the blood (the cash flow). The financial system is the body and it has suffered a massive heart attack!

What is the repo market?

The repo market is the market whereby all financial institutions (regulated and unregulated) invariably go to obtain financing to meet reserve requirements, bridging finance, to lend or purchase securities, to hedge and or to invest on short-term basis.

It used to be that mainly US Treasuries (bear this in mind at all times) were used as security for Repo transactions, as it is considered as most secure i.e. as good as cash since it is backed by the credit of the US government!

This requirement is no longer the case. More of this issue later.

The Nature of Repo Transactions

In repo transactions, securities are exchanged for cash with an agreement to repurchase the securities at a future date. The securities serve as collateral for what is effectively a cash loan. A distinguishing feature of repos is that they can be used either to obtain funds or to obtain securities. As repos are short-maturity collateralized instruments, repo markets have strong linkages with securities markets, derivative markets and other short term markets such as inter-bank and money markets. [3]

Like other financial markets, repo markets are subject to credit risks, operational risks and liquidity risks. However, what distinguishes the credit risks on repos from that associated with uncollateralized instruments is that repos credit exposures arise from volatility (or market risk) in the value of collateral. Bear this in mind at all times.

Repos allow institutions to use leverage to take larger positions in financial markets which could add to systemic risks. Bear this in mind at all times.

And because of the close linkages between repo markets and securities markets, any shocks will be transmitted quickly, resulting in a gridlock. Bear this in mind at all times.


Transactions covered by definition of repos are as follows:

(A) Repurchase Agreement

A repurchase agreement involves the sale of an asset under an agreement to repurchase the asset from the same counter-party. Interest is paid on the repurchase agreement by adjusting the sale and purchase price. A reverse repo is the purchase of an asset with an agreement to re-sell the same or a similar asset.

A hold-in-custody repurchase agreement is a trade whereby the repoer (the borrower of cash) continues to hold the collateralizing securities in custody for the lender of cash. The risks are obvious!

A deliver-out repurchase agreement is where securities are delivered to the cash lender for custody in exchange for cash.

A tri-party repurchase agreement is similar to a deliver-out repurchase agreement, except that the security is placed in the custody of a third-party entity. The third-party ensures that the security meets the cash lender’s requirements and provides valuation and margining services. This is the primary form of repurchase agreement for securities dealers in the United States. Bank of New York and JP Morgan Chase are the two main custodians or clearing banks in the US and supervise the vast majority of the tri-party repos. Bear this in mind at all times.

(B) Sell/Buy-Back Agreement

A sell buy-back is two distinct outright cash market trades, one for forward settlement. The forward price is set relative to the spot price to yield a market rate of return.

(C) Securities Lending

This is where the owner of the security lends them to another person in return for a fee. The borrower of the security is contractually obliged to redeliver a like quantity of the same securities, or return precisely the same securities.

Repos can be of any duration but are most commonly over-night loans. Repos longer than over-night are called Term Repos. There are also Open Repos which are transactions which can be terminated by both parties on a day’s notice.


The largest players of repos and reverses are the dealers in government securities. There are about 20 primary dealers recognised by the Fed which are authorised to bid for new-issued treasury securities for resale in the market. The dealers are highly leveraged, 50 to 100 times their own capital. To finance the purchase of treasury securities, the dealers need to have repo monies in large amounts on a continuing basis. The institutions that supply such huge funds in the repo market are money funds, large corporations, state and local governments and foreign central banks.

The Repo Market and the Financial Crisis

As stated earlier when the repo market first started, US treasuries were the preferred security. But when financial engineering exploded and many financial products (i.e. CDOs) were rated AAA by rating agencies, these securities were also traded as described above in the repo market. This was when problems started.

According to Gary Gorton [4], the repo market before the crisis was estimated to be worth a whopping $12 trillion as compared to the total assets in the entire US banking system of $10 trillion.

The former CEO of Federal Reserve Bank of New York (NYFRB) and now the US Treasury Secretary, Tim Geithner observed in 2008:

“The structure of the financial system changed fundamentally during the boom, with dramatic growth in the share of assets outside the traditional banking system. This non-bank financial system grew to be very large, particularly in money and funding markets.

“This parallel system financed some of these very assets on a very short term basis in the bilateral or tri-party repo markets. As the volume of activity in repo markets grew, the variety of assets financed in this manner expanded beyond the most highly liquid securities to include less liquid securities, as well. Nonetheless, these assets were assumed to be readily sellable at fair values, in part because assets with similar credit ratings had generally been tradable during past periods of financial stress. And the liquidity supporting them was assumed to be continuous and essentially frictionless, because it had been so for a long time.

“The scale of long term risky and relatively illiquid assets financed by very short-term liabilities made many of the vehicles and institutions in this parallel financial system vulnerable to a classic type run, but without the protection such as deposit insurance that the banking system has in place to reduce such risks.”

Economic historians will argue for another century as to the cause for the run on the repo market. The collapse of Bear Stearns is as good a starting point as any. When the market discovered that its securities were duds, pure junk, shock waves ripped through the system.Recall that I had mentioned earlier that Federal Bank of New York and JP Morgan Chase were the primary clearing banks for repos.

The Fed’s rescue of Bear Stearns through JP Morgan was not so much to save the former but rather to shore up the “clearing system” of the repos for which JP Morgan Chase and the Bank of New York were the main pillars. One of the functions of a “clearing bank” for repos is to value and match securities tendered for cash borrowings. If Bear Stearns securities are now valued as junks, the integrity of JP Morgan and Federal Bank of New York as clearing banks in this market is as good as zero! And bearing in mind that the five major investment banks in the US rely heavily on the repo market for their funding, any gridlock in this part of the shadow banking system would tear wide open the entire banking system, including the traditional counter-part.

Hence, the FED intervention by the creation of the Primary Dealer Credit Facility (PDCF) which was in effect the backstop for all investment banking using tri-party repos!

This was what Bernanke said:


“We have been working with market participants to develop a contingency plan should there ever occur a loss of confidence in either of the two clearing banks that facilitate the settlement of tri-party repos.”

Louis Crandall, economist at Wrightson ICAP observed:

“The vulnerability of the tri-party repo system has been a recurring theme among Federal Reserve and Treasury officials in recent weeks.”

The inherent weakness of tri-party repos is that the counter-party risks of billions worth of funding agreements are shouldered by essentially two players – Federal Bank of New York and JP Morgan Chase.

Yet, way back then, they were held up as rock solid. It is almost hilarious to read the then advert of the Federal Bank of New York as to their expertise and service:


“Sophisticated collateral selection: enforce diversification and credit quality; control adequacy, volatility & liquidity.

“Cutting edge infrastructure: economies of scale facilitate extensive data warehousing, access to more asset classes and markets, auto-substitution, auto-allocation & optimisation technology, same day reporting.

“Introduction to new counterparts: A Global Collateral Clearing House.”


Panic swept across the entire repo market.

No securities were considered safe enough for repos except US treasuries.

Fundings in the repo market grind to a halt.

Market players withdrew funds and began hoarding treasuries.

The rest who own structured products were slaughtered.

I would like to quote Gary Gorton again:

“Imagine a firm that is levered 30:1, by borrowing in the repo market. If the haircut [5] doubles, or goes from zero to a positive amount, the required deleveraging is massive! Most investment banks were levered 30:1, equivalent to about a 3 per cent haircut. If the haircut rises to 6 per cent, at least half the assets will have to be sold.

“Another sign of trouble is a ‘repo fail’. A ‘repo fail’ occurs when one side of the agreement fails to abide by the contract. [Fail to deliver the security under the repurchase agreement.]

“Dealer banks would not accept collateral because they rightly believed that if they had to seize the collateral should the counter-party fail, then there would be no market in which to sell it. This was due to the absence of buyers because of the deleveraging. This led to an absence of prices for these securities. If the value cannot be determined because there is no market – no liquidity or there is the concern that if the asset is seized by the lender, it will not be saleable at all, then the dealer will not engage in repo. Repo dealers report that there was uncertainty about whether to believe the ratings on these structured products, and in a very fast moving environment, the response was to pull back from accepting anything structured. If no one would accept structured products for repo, then these bonds could not be traded – and then no one would want to accept them in repo transactions.”

This change led to a sharp increase in the demand for government securities for repo transactions, which was compounded by significantly higher safe-haven demand for US Treasuries and the increased unwillingness to lend such securities in repo transactions. As the crisis unfolded, this combination resulted in US government collateral becoming extremely scarce. [6]

I will now turn to the issue of the FED’s solvency.

As has been observed, the Fed intervened aggressively to check the run on the repo market. Various measures were taken, but in my view the most dangerous was the widening of the collaterals which the Fed was willing to accept to secure funding of the players in the repo market. The Fed also intervened by lending a huge chunk of its US treasuries in exchange for junks to facilitate credit expansion.

In the result, what happened was that the Fed’s present balance sheet of approximately $2 trillion is made up mostly of junk securities.

The Fed is no different from banks in that confidence in the quality of its assets is critical and that if and when the market recovers, there is in fact a market for the junk assets that it took on to unravel the gridlock in the financial markets.

By way of analogy, if your high street bank’s balance sheet is made up of junk, what would you do? There are just not enough assets to meet its liabilities.

But of course, one can argue that the Fed is not your high street bank. It is the central bank of the mighty USA. It will always be able to “print money” or “digitalise” money and keep the markets going.

But beware that the Federal Reserve Note is mere paper, fiat money which cannot be redeemed for anything tangible such as gold. And although it is stated boldly in the notes issued – “In God we trust” – you and I are not actually placing our trust in God when accepting the Federal Reserve Notes as “money”.

When Joe Six-Packs realises that the Federal Reserve Note is not even secured by US treasuries and or the FED has real tangible assets, but its balance sheet is littered with junks and toxic waste, there will be a run on the Fed i.e. when Americans and foreigners no longer have faith in the Federal Reserve Notes as “money”.

If confidence could vaporise in a second and cause a stampede in what was once considered solid security, the triple A rated bonds in the repo and money markets, the same confidence that is now reposed in the Federal Reserve Notes can likewise disappear into the memory hole.

All these years, the con was maintained by the Fed that it was solid because it has on its balance sheet over $800 billion of US treasuries i.e. its notes “were so-called backed by these treasuries”. It could sell its treasuries in the repo market for cash and thereby control the money flows in the economy and vice versa.

In their subconscious mind, Americans and stupid foreign central banks and their executives (brain-washed by the Chicago School of Economics) somehow believe in the infallibility of the Fed.

Now it has been exposed that the Fed’s “assets” comprise of junk bonds and toxic wastes.

The Emperor has no clothes!

Paul Volcker, former Chairman of the Federal Reserve may have given the ultimate epitaph: “The bright new financial system – for all its talented participants, for all its rich rewards – has failed the test of the market place.”

And it is any wonder that Professor Nouriel Roubini declared:


“The process of socialising the private losses from this crisis has already moved many liabilities of the private sector onto the books of the sovereign. At some point a sovereign bank may crack, in which case the ability of the government to credibly commit to act as a backstop for the financial system – including deposit guarantees – could come unglued


In my opinion, the Fed has already become “unglued”. Whatever guarantees given to secure the indebtedness of CitiGroup and others to prevent a run on these banks are useless.

It is bankrupt!


End Notes

[1] There are two banking systems in existence today. The Traditional Banking System – i.e. High Street banks and the Shadow Banking System. But the players in both the systems overlap because, the major banks of the traditional system helped spawn the shadow banking system. In fact they are the key players in the use of the so-called “new financial products, the CDOs, CLOs, MBS” etc and which have now turned toxic – worthless, junk to be exact.
[2] See my website archives: Roubini Warns of Sovereign Bank Failure – February 20, 2009 www.theage.com.au
[3] See: Implications of repo markets for central banks, CGFS Publications No 10, March 1999.
[4] Gary Gorton, Information, Liquidity, and the (Ongoing) Panic of 2007 prepared for the Jackson Hole Conference 2008
[5] “haircut” here refers to the rate payable for the cash loan or the margin.
[6] Peter Hordahl and Martin R King, Developments in repo markets during the financial turmoil BIS Quarterly Review, December 2008

Matthias Chang is a prominent barrister, author and analyst of the New World Order based in Malaysia.
His website:
www.FutureFastForward.com

VIA AFP

By Michael Collins Piper

The New York Times published a flat-out untruth on Feb. 7 about the Federal Reserve Act of 1913. And the untruth came from the pen of a distinguished American academic who is author of many much-touted works of history.

In a commentary in the Times, entitled “The Value of Other People’s Money,” Dr. Melvin I. Urofsky, a professor at Virginia Commonwealth University, reflected on the origins of the congressional measure that created the Federal Reserve System. He said that the measure “allowed Congress to take away banks’ control over currency.” In fact, nothing could be further from the truth.

Dr. Urofsky was dead wrong. The New York Times was guilty of perpetrating a falsehood, something which should come as no surprise, considering the fact that The New York Times—which fancies itself America’s newspaper of record—has long been the daily media voice in the United States of the international banking dynasties that control the American money system through their domination of the Fed.

The truth about the nature of the Fed is no secret to Americans who have access to independent newspapers such as AMERICAN FREE PRESS, historical journals such as THE BARNES REVIEW and radio outlets such as Republic Broadcasting (which can be found on the Internet at republicbroadcasting.org).


banner_newsletter

In fact, as far back as the 1920s, the great American industrialist Henry Ford was warning Americans of the venal nature of the Fed and the plutocratic money masters who created the Fed and who controlled it then as they do today. Ford wrote:

What the people of the United States do not understand and never have understood is that while the Federal Reserve Act was governmental, the whole Federal Reserve System is private. It is an officially created private banking system.

Examine the first 1,000 people you meet on the street, and 999 of them will tell you that the Federal Reserve System is a device whereby the United States government went into the banking business for the benefit of the people. They have an idea that like the Post Office and the Custom House the Federal Reserve is part of the government’s official machinery. . . .

Take up the standard encyclopedias and while you will find no misstatements of fact in them, you will find no statement that the Federal Reserve System is a private banking system; the impression carried away by the lay reader is that it is a part of the government.

The Federal Reserve System is a system of private banks, the creation of a banking aristocracy within an already existing system of aristocracy, whereby a great proportion of banking independence was lost, and whereby it was made possible for speculative financiers to centralize great sums of money for their own purposes, beneficial [to the people of the United States] or not.

In addition, while there has been much written on the Federal Reserve and the reality of what it constitutes— a privately owned and privately controlled money monopoly in the hands of banking institutions—the fact that the Rothschild family of Europe was, ultimately, the primary force behind the establishment of the system on American soil, is not something that is fully understood.

For example, because there were no people named “Rothschild” at the famous meeting off the coast of Georgia at Jekyll Island where the framework for the Federal Reserve was put forth and where the planning for the Federal Reserve Act of 1913 established the Fed, there are those who would divorce the Rothschild family altogether from the circumstances. However, the fine hand of Rothschild was indeed on the scene, represented by Paul Warburg of the New York-based Kuhn, Loeb Company, which was under the control of longtime Rothschild associate Jacob Schiff.

Despite all of this very clear history—which has been outlined by numerous authors such as Wyckliffe Vennard, Eustace Mullins, and Dr. Martin Larson, the preeminent among them—modern-day media propagandists (and we must include the aforementioned Dr. Melvin I. Urofsky among them)—continue to present the Fed as precisely the opposite of what it really is. That Urofsky is assisting in the perpetration of the fraud is particularly egregious in light of the fact that he is a much-published author of such volumes as:

� American Zionism from Herzl to the Holocaust;

�We are One!: American Jewry and Israel;

� Commonwealth and Community: The Jewish Experience in Virginia;

� Documents of American Constitutional and Legal History; and

� A March of Liberty: A Constitutional History of the United States.

And these are just a few of the works to which Urofsky has added his name.

Those who wish to contact Urofsky and provide him factual information about the Federal Reserve System (of which he is apparently unaware) may contact him by email at murofsky@vcu.edu or write: Dr. Melvin Urof sky, 919 W. Franklin Street, Richmond, Va. 23220.

A journalist specializing in media critique, Michael Collins Piper is the author of The High Priests of War, The New Jerusalem, Dirty Secrets, The Judas Goats, The Golem, Target Traficant and My First Days in the White House All are available from AFP.



VIA AFP

By Michael Collins Piper

The New York Times published a flat-out untruth on Feb. 7 about the Federal Reserve Act of 1913. And the untruth came from the pen of a distinguished American academic who is author of many much-touted works of history.

In a commentary in the Times, entitled “The Value of Other People’s Money,” Dr. Melvin I. Urofsky, a professor at Virginia Commonwealth University, reflected on the origins of the congressional measure that created the Federal Reserve System. He said that the measure “allowed Congress to take away banks’ control over currency.” In fact, nothing could be further from the truth.

Dr. Urofsky was dead wrong. The New York Times was guilty of perpetrating a falsehood, something which should come as no surprise, considering the fact that The New York Times—which fancies itself America’s newspaper of record—has long been the daily media voice in the United States of the international banking dynasties that control the American money system through their domination of the Fed.

The truth about the nature of the Fed is no secret to Americans who have access to independent newspapers such as AMERICAN FREE PRESS, historical journals such as THE BARNES REVIEW and radio outlets such as Republic Broadcasting (which can be found on the Internet at republicbroadcasting.org).


banner_newsletter

In fact, as far back as the 1920s, the great American industrialist Henry Ford was warning Americans of the venal nature of the Fed and the plutocratic money masters who created the Fed and who controlled it then as they do today. Ford wrote:

What the people of the United States do not understand and never have understood is that while the Federal Reserve Act was governmental, the whole Federal Reserve System is private. It is an officially created private banking system.

Examine the first 1,000 people you meet on the street, and 999 of them will tell you that the Federal Reserve System is a device whereby the United States government went into the banking business for the benefit of the people. They have an idea that like the Post Office and the Custom House the Federal Reserve is part of the government’s official machinery. . . .

Take up the standard encyclopedias and while you will find no misstatements of fact in them, you will find no statement that the Federal Reserve System is a private banking system; the impression carried away by the lay reader is that it is a part of the government.

The Federal Reserve System is a system of private banks, the creation of a banking aristocracy within an already existing system of aristocracy, whereby a great proportion of banking independence was lost, and whereby it was made possible for speculative financiers to centralize great sums of money for their own purposes, beneficial [to the people of the United States] or not.

In addition, while there has been much written on the Federal Reserve and the reality of what it constitutes— a privately owned and privately controlled money monopoly in the hands of banking institutions—the fact that the Rothschild family of Europe was, ultimately, the primary force behind the establishment of the system on American soil, is not something that is fully understood.

For example, because there were no people named “Rothschild” at the famous meeting off the coast of Georgia at Jekyll Island where the framework for the Federal Reserve was put forth and where the planning for the Federal Reserve Act of 1913 established the Fed, there are those who would divorce the Rothschild family altogether from the circumstances. However, the fine hand of Rothschild was indeed on the scene, represented by Paul Warburg of the New York-based Kuhn, Loeb Company, which was under the control of longtime Rothschild associate Jacob Schiff.

Despite all of this very clear history—which has been outlined by numerous authors such as Wyckliffe Vennard, Eustace Mullins, and Dr. Martin Larson, the preeminent among them—modern-day media propagandists (and we must include the aforementioned Dr. Melvin I. Urofsky among them)—continue to present the Fed as precisely the opposite of what it really is. That Urofsky is assisting in the perpetration of the fraud is particularly egregious in light of the fact that he is a much-published author of such volumes as:

� American Zionism from Herzl to the Holocaust;

�We are One!: American Jewry and Israel;

� Commonwealth and Community: The Jewish Experience in Virginia;

� Documents of American Constitutional and Legal History; and

� A March of Liberty: A Constitutional History of the United States.

And these are just a few of the works to which Urofsky has added his name.

Those who wish to contact Urofsky and provide him factual information about the Federal Reserve System (of which he is apparently unaware) may contact him by email at murofsky@vcu.edu or write: Dr. Melvin Urof sky, 919 W. Franklin Street, Richmond, Va. 23220.

A journalist specializing in media critique, Michael Collins Piper is the author of The High Priests of War, The New Jerusalem, Dirty Secrets, The Judas Goats, The Golem, Target Traficant and My First Days in the White House All are available from AFP.



Further Adventures in the Quantum Wrongness Field, Economic Crisis Edition

by Glen Allport

- 1 –

Deeper into the Wrongness

I described the common state of Wrongness in Marooned in the Quantum Wrongness Field (April, 2007). Today, the public is predictably being lured ever-deeper into Wrongness by propaganda about the economic crisis. Among other things, we are told that adding trillions of dollars in new federal debt and printing oceans of new money-from-thin-air will somehow restore prosperity.

Given that such behavior was the primary cause of the crisis, it would seem obvious that more of the same will not solve the problem. Debt doesn’t create prosperity, but heavy debt can certainly vaporize prosperity, and the bailouts have so far added $27,599 in government debt for every U.S. citizen – $110,396 per family of four. (Yes, that’s just new debt). Printing money non-stop doesn’t create prosperity either, as anyone in Zimbabwe can testify (do not miss the video embedded in that link), but the human ability to passionately believe in Things That Are Wrong is apparently stronger than reality itself.

For a time, anyway.

- 2 –

Why is Counterfeiting Illegal?

If printing up trillions of dollars to “stimulate spending” is going to save the economy, why do we ever put up with even the slightest recession? Just print that funky money, boys and girls! Give every citizen a high-speed color laser printer and require everyone to download the Official Dollar Jpeg Files and then print, print, PRINT those dollars nonstop, day and night! Every man, woman, and child would be a multi-billionaire, and economic activity would be red-hot forever!

Why stop at ten giant-screen TVs when you can have twenty? Heck, why not panel every wall in your mansion floor-to-ceiling with big-screen LCDs? You couldn’t get them all home in your new Ferrari, but you could easily buy a fleet of vans for the job – and hire drivers for them, too. You could buy ANYTHING YOU WANTED, every day of the year!

See what I mean? How could the economic crisis withstand that? Problem solved! – at least if we believe the rationale for America ‘s current response to the financial crisis.

For some reason, we aren’t handing the zillions of new dollars we are creating to just anyone. No, Our Leaders know what’s best (despite their constant failure in the past) and they have decided to be picky, and to hand most (although not all) of those galactic-sized piles of your money to failed bankers (only some of whom may be guilty of teensy amounts of mortgage fraud), to failed automakers and other failed big-business honchos, to federal bureaucrats and heads of police-state agencies, and to other more-important-than-you über-humans who will spend the money better than you would. (Our Maximum Leader also knows how to spin this better than I do [or see here], making it sound positively sensible). Like crumbs trickling down from a banquet table to the mice and roaches below, some of this trillion-dollar largess will float down to the Little People, and then Americans can be happy and rich and smug once again, as we have every right to be. America ! Hell yeah!

But somewhere, in a dark and anxious corner of our minds, we know the truth: hard work and savings are needed to create and sustain prosperity. Constantly going into debt to spend more money than you actually have while closing down productive industries and shipping the work overseas – living like parasites on the savings and labor of other nations – is a sure-fire way to turn a prosperous nation into a poor one. Printing mountains of money from thin air doesn’t work either, since each new dollar-from-nothing reduces the value of every existing dollar – exactly why counterfeiting is illegal. For proof, Americans need only look at their own currency, which used to be gold and silver (as the Constitution still requires*), with a fixed rate of roughly $20 per ounce of gold. As this is written, it takes 50 times more dollars to buy an ounce of gold, at $1,000 per ounce. Imagine how much new money was created (and spent or given away by the government – instead of being used by the people for what they might have wanted) to debase the dollar to such an extent, rendering each dollar now almost worthless.

It is worth saying again: Print more dollars, and each dollar loses value. A simple chart shows how this works in the real world:

From Money Supply and Purchasing Power

by Mike Hewitt and Dr. Krassimir Petrov

The chart above uses the government CPI figures for “purchasing power”, and during the time covered in the chart the government has changed the way the CPI is calculated, resulting in lower rates of “official” inflation than the older methods would show (see shadowstats.com for details). In other words, the problem is even worse than the chart suggests.

We did get something for all that debt and counterfeit money – many things, in fact: war after war [pdf], the largest military-industrial complex the world has ever seen, an intrusive and arrogant foreign policy that has made us the most hated nation around the globe, social programs that have displaced voluntarily-funded (i.e., civil) market alternatives while leading Americans into child-like dependency, an expanding police state here at home, a cruel and counterproductive war on drugs, and ominously powerful corporatist nodes like Blackwater and Halliburton and Monsanto (not to mention Big Pharma, the banking industry, and a hundred more). As I said, the power elite know how to spend your money, and in today’s crisis, more than ever, we need to just stand back and let ‘em work!

- 3 –

Throwing Gasoline on the Fire

US TREASURIES ARE DOOMED for the simple reason that the United States thinks it can go on manufacturing money out of nowhere and get stupid foreigners to pay for it all by buying Treasuries . . . . WELCOME TO THE ERA OF HYPERINFLATION. Is it any wonder that gold and silver, the traditional stores of value in times of crisis, are taking off against all currencies? Hot new degree course topics for business students around the world will surely be ‘The Weimar Republics of Germany and the United States , 1920 and 2009′, and ‘ Zimbabwe and the United States –from riches to rags’. So US Treasuries are the ultimate sucker play–zero yield and a bear market to boot–why not save yourself the trouble and walk out into the street and stuff your money straight down the drain?” [ CAPS in original]

– Clive Maund, Precious Metals Stocks Stalemate About to End

Moving gingerly back to reality, we are reminded, with a sense of horror, that even many intelligent and educated people are mired in the Quantum Wrongness Field like mastodons in the La Brea tar pits. Despite example after example of hyperinflation throughout history, Americans somehow think they will be immune. Despite the universally devastating effects of hyperinflation – destruction of the middle class; near-total loss of value for pensions, salaries, and savings; widespread poverty and hunger; enhanced tyranny and (too often) outright war – despite all that, people expect something different this time: unicorns and flowers, perhaps.

But even unicorns wouldn’t be enough to hold back the darker reality of hyperinflation. The PBS series Commanding Heights includes an essay on the German Hyperinflation of 1923, which quotes Pearl Buck on her experience in Germany at the time, where she was visiting (Buck is most famous for her novels on China). Looking back on the experience from later in life, she wrote: “The cities were still there, the houses not yet bombed and in ruins, but the victims were millions of people. They had lost their fortunes, their savings; they were dazed and inflation-shocked and did not understand how it had happened to them and who the foe was who had defeated them. Yet they had lost their self-assurance, their feeling that they themselves could be the masters of their own lives if only they worked hard enough; and lost, too, were the old values of morals, of ethics, of decency.” (See also this list of descriptions of 20th Century hyperinflations at the PBS site).

Morals, ethics, and decency gone, along with every last shred of prosperity: Welcome to your future, America ! It is probably too late to avoid that hyperinflationary future now no matter what we do – economist John Williams of ShadowStats.com thinks so – but adding trillions of dollars in new debt while also printing trillions from thin air will accelerate and deepen the disaster as surely as the dark of night follows sunset. The carefully-misnamed “stimulus” that so many are cheering is the death knell for what remains of this nation’s prosperity and freedom.

Government “help” is exactly what turns a short, sharp correction into a generation-long nightmare; when government stays out of the way in a financial crisis, the problem is resolved quickly, as happened in 1921, 1947, and 1981. This is perfectly in line with a well-known natural law, which states that – as social philosopher and noted economic expert Ringo Starr once put it – “everything government touches turns to crap.” (My own formulation of the law is that “coercive government is The Worst Way to Do Anything.”)

Japan and the United States, among other nations, have previously turned what might have been short downturns into decades-long economic agonies by means of the same type of “government stimulus spending” that Obama and Congress are now forcing on American taxpayers. Obama is only following in the footsteps of Bush, who promoted and signed a $700 billion bailout along with other massive giveaways, just as FDR was following in the interventionist footsteps of Herbert Hoover, despite the common myth that their policies were diametrically opposed. Big-spending “stimulus” and “job creation” efforts not only failed to quickly end the Great Depression; they dragged the problem out for years. Despite the long build-up of demand (from low consumption) during the ‘30s, it wasn’t until after the end of World War II (during which Americans suffered rationing of meat, gasoline, tires, automobiles, shoes, and other necessities) – in the late 1940s – that America returned to anything one might reasonably call prosperity.

In last Sunday’s San Francisco Chronicle, Carolyn Lochhead gives some relevant specifics about how government “stimulus spending” has worked historically: “Japan’s Nikkei stock index peaked around 39,000 in 1989 and two decades later is languishing around 7,500. Japan ‘s real estate market still has not recovered after 17 years. The Dow Jones index did not rebound from the 1929 U.S. stock market crash until 1954.”

Today, U.S. fundamentals are far worse than they were in 1929. Our levels of debt; our diminished and crumbling manufacturing sector; the banking sector meltdown; the size of our military, of our costly overseas empire and of our parasitic government generally; not to mention the approach of both hyperinflation and Peak Oil, among other things – all this is orders of magnitude beyond what we faced as the 1930s began. For such reasons, I believe that real recovery in the U.S. will take far longer than the quarter-century it took to finally shake off the effects of the Great Depression. Most people alive today will not be alive when (or rather, if) America returns to the level of prosperity this generation grew up taking for granted.

And that is what you get when you let government and a monopoly-chartered central bank control your nation’s system of money.

- – - – -

Note:

* Although the United States came into being as exactly that – a voluntary union of sovereign states – and despite Article One, Section 10 stating clearly that “No State shall . . . make any Thing but gold and silver Coin a Tender in Payment of Debt”, the argument has been made (before the Supreme Court, in fact) that this clause actually means that the States can make anything whatsoever a tender in Payment of Debt, as long as the federal government decides to force that system down their throats. In fact, the Constitution explicitly prohibits the states from recognizing or allowing money other than gold and silver to circulate as legal tender, regardless of who issues it. The founders clearly meant for money in these United States to always be gold and silver (writings from the era amply confirm this), but that’s the glory of our system: with the right crew on the Supreme Court, plain language in the Constitution can mean anything our rulers want it to mean. For a highly detailed look at the topic, consider Eugene C. Holloway’s Gold, Money, and the U.S. Constitution series.

Further Adventures in the Quantum Wrongness Field, Economic Crisis Edition

by Glen Allport

- 1 –

Deeper into the Wrongness

I described the common state of Wrongness in Marooned in the Quantum Wrongness Field (April, 2007). Today, the public is predictably being lured ever-deeper into Wrongness by propaganda about the economic crisis. Among other things, we are told that adding trillions of dollars in new federal debt and printing oceans of new money-from-thin-air will somehow restore prosperity.

Given that such behavior was the primary cause of the crisis, it would seem obvious that more of the same will not solve the problem. Debt doesn’t create prosperity, but heavy debt can certainly vaporize prosperity, and the bailouts have so far added $27,599 in government debt for every U.S. citizen – $110,396 per family of four. (Yes, that’s just new debt). Printing money non-stop doesn’t create prosperity either, as anyone in Zimbabwe can testify (do not miss the video embedded in that link), but the human ability to passionately believe in Things That Are Wrong is apparently stronger than reality itself.

For a time, anyway.

- 2 –

Why is Counterfeiting Illegal?

If printing up trillions of dollars to “stimulate spending” is going to save the economy, why do we ever put up with even the slightest recession? Just print that funky money, boys and girls! Give every citizen a high-speed color laser printer and require everyone to download the Official Dollar Jpeg Files and then print, print, PRINT those dollars nonstop, day and night! Every man, woman, and child would be a multi-billionaire, and economic activity would be red-hot forever!

Why stop at ten giant-screen TVs when you can have twenty? Heck, why not panel every wall in your mansion floor-to-ceiling with big-screen LCDs? You couldn’t get them all home in your new Ferrari, but you could easily buy a fleet of vans for the job – and hire drivers for them, too. You could buy ANYTHING YOU WANTED, every day of the year!

See what I mean? How could the economic crisis withstand that? Problem solved! – at least if we believe the rationale for America ‘s current response to the financial crisis.

For some reason, we aren’t handing the zillions of new dollars we are creating to just anyone. No, Our Leaders know what’s best (despite their constant failure in the past) and they have decided to be picky, and to hand most (although not all) of those galactic-sized piles of your money to failed bankers (only some of whom may be guilty of teensy amounts of mortgage fraud), to failed automakers and other failed big-business honchos, to federal bureaucrats and heads of police-state agencies, and to other more-important-than-you über-humans who will spend the money better than you would. (Our Maximum Leader also knows how to spin this better than I do [or see here], making it sound positively sensible). Like crumbs trickling down from a banquet table to the mice and roaches below, some of this trillion-dollar largess will float down to the Little People, and then Americans can be happy and rich and smug once again, as we have every right to be. America ! Hell yeah!

But somewhere, in a dark and anxious corner of our minds, we know the truth: hard work and savings are needed to create and sustain prosperity. Constantly going into debt to spend more money than you actually have while closing down productive industries and shipping the work overseas – living like parasites on the savings and labor of other nations – is a sure-fire way to turn a prosperous nation into a poor one. Printing mountains of money from thin air doesn’t work either, since each new dollar-from-nothing reduces the value of every existing dollar – exactly why counterfeiting is illegal. For proof, Americans need only look at their own currency, which used to be gold and silver (as the Constitution still requires*), with a fixed rate of roughly $20 per ounce of gold. As this is written, it takes 50 times more dollars to buy an ounce of gold, at $1,000 per ounce. Imagine how much new money was created (and spent or given away by the government – instead of being used by the people for what they might have wanted) to debase the dollar to such an extent, rendering each dollar now almost worthless.

It is worth saying again: Print more dollars, and each dollar loses value. A simple chart shows how this works in the real world:

From Money Supply and Purchasing Power

by Mike Hewitt and Dr. Krassimir Petrov

The chart above uses the government CPI figures for “purchasing power”, and during the time covered in the chart the government has changed the way the CPI is calculated, resulting in lower rates of “official” inflation than the older methods would show (see shadowstats.com for details). In other words, the problem is even worse than the chart suggests.

We did get something for all that debt and counterfeit money – many things, in fact: war after war [pdf], the largest military-industrial complex the world has ever seen, an intrusive and arrogant foreign policy that has made us the most hated nation around the globe, social programs that have displaced voluntarily-funded (i.e., civil) market alternatives while leading Americans into child-like dependency, an expanding police state here at home, a cruel and counterproductive war on drugs, and ominously powerful corporatist nodes like Blackwater and Halliburton and Monsanto (not to mention Big Pharma, the banking industry, and a hundred more). As I said, the power elite know how to spend your money, and in today’s crisis, more than ever, we need to just stand back and let ‘em work!

- 3 –

Throwing Gasoline on the Fire

US TREASURIES ARE DOOMED for the simple reason that the United States thinks it can go on manufacturing money out of nowhere and get stupid foreigners to pay for it all by buying Treasuries . . . . WELCOME TO THE ERA OF HYPERINFLATION. Is it any wonder that gold and silver, the traditional stores of value in times of crisis, are taking off against all currencies? Hot new degree course topics for business students around the world will surely be ‘The Weimar Republics of Germany and the United States , 1920 and 2009′, and ‘ Zimbabwe and the United States –from riches to rags’. So US Treasuries are the ultimate sucker play–zero yield and a bear market to boot–why not save yourself the trouble and walk out into the street and stuff your money straight down the drain?” [ CAPS in original]

– Clive Maund, Precious Metals Stocks Stalemate About to End

Moving gingerly back to reality, we are reminded, with a sense of horror, that even many intelligent and educated people are mired in the Quantum Wrongness Field like mastodons in the La Brea tar pits. Despite example after example of hyperinflation throughout history, Americans somehow think they will be immune. Despite the universally devastating effects of hyperinflation – destruction of the middle class; near-total loss of value for pensions, salaries, and savings; widespread poverty and hunger; enhanced tyranny and (too often) outright war – despite all that, people expect something different this time: unicorns and flowers, perhaps.

But even unicorns wouldn’t be enough to hold back the darker reality of hyperinflation. The PBS series Commanding Heights includes an essay on the German Hyperinflation of 1923, which quotes Pearl Buck on her experience in Germany at the time, where she was visiting (Buck is most famous for her novels on China). Looking back on the experience from later in life, she wrote: “The cities were still there, the houses not yet bombed and in ruins, but the victims were millions of people. They had lost their fortunes, their savings; they were dazed and inflation-shocked and did not understand how it had happened to them and who the foe was who had defeated them. Yet they had lost their self-assurance, their feeling that they themselves could be the masters of their own lives if only they worked hard enough; and lost, too, were the old values of morals, of ethics, of decency.” (See also this list of descriptions of 20th Century hyperinflations at the PBS site).

Morals, ethics, and decency gone, along with every last shred of prosperity: Welcome to your future, America ! It is probably too late to avoid that hyperinflationary future now no matter what we do – economist John Williams of ShadowStats.com thinks so – but adding trillions of dollars in new debt while also printing trillions from thin air will accelerate and deepen the disaster as surely as the dark of night follows sunset. The carefully-misnamed “stimulus” that so many are cheering is the death knell for what remains of this nation’s prosperity and freedom.

Government “help” is exactly what turns a short, sharp correction into a generation-long nightmare; when government stays out of the way in a financial crisis, the problem is resolved quickly, as happened in 1921, 1947, and 1981. This is perfectly in line with a well-known natural law, which states that – as social philosopher and noted economic expert Ringo Starr once put it – “everything government touches turns to crap.” (My own formulation of the law is that “coercive government is The Worst Way to Do Anything.”)

Japan and the United States, among other nations, have previously turned what might have been short downturns into decades-long economic agonies by means of the same type of “government stimulus spending” that Obama and Congress are now forcing on American taxpayers. Obama is only following in the footsteps of Bush, who promoted and signed a $700 billion bailout along with other massive giveaways, just as FDR was following in the interventionist footsteps of Herbert Hoover, despite the common myth that their policies were diametrically opposed. Big-spending “stimulus” and “job creation” efforts not only failed to quickly end the Great Depression; they dragged the problem out for years. Despite the long build-up of demand (from low consumption) during the ‘30s, it wasn’t until after the end of World War II (during which Americans suffered rationing of meat, gasoline, tires, automobiles, shoes, and other necessities) – in the late 1940s – that America returned to anything one might reasonably call prosperity.

In last Sunday’s San Francisco Chronicle, Carolyn Lochhead gives some relevant specifics about how government “stimulus spending” has worked historically: “Japan’s Nikkei stock index peaked around 39,000 in 1989 and two decades later is languishing around 7,500. Japan ‘s real estate market still has not recovered after 17 years. The Dow Jones index did not rebound from the 1929 U.S. stock market crash until 1954.”

Today, U.S. fundamentals are far worse than they were in 1929. Our levels of debt; our diminished and crumbling manufacturing sector; the banking sector meltdown; the size of our military, of our costly overseas empire and of our parasitic government generally; not to mention the approach of both hyperinflation and Peak Oil, among other things – all this is orders of magnitude beyond what we faced as the 1930s began. For such reasons, I believe that real recovery in the U.S. will take far longer than the quarter-century it took to finally shake off the effects of the Great Depression. Most people alive today will not be alive when (or rather, if) America returns to the level of prosperity this generation grew up taking for granted.

And that is what you get when you let government and a monopoly-chartered central bank control your nation’s system of money.

- – - – -

Note:

* Although the United States came into being as exactly that – a voluntary union of sovereign states – and despite Article One, Section 10 stating clearly that “No State shall . . . make any Thing but gold and silver Coin a Tender in Payment of Debt”, the argument has been made (before the Supreme Court, in fact) that this clause actually means that the States can make anything whatsoever a tender in Payment of Debt, as long as the federal government decides to force that system down their throats. In fact, the Constitution explicitly prohibits the states from recognizing or allowing money other than gold and silver to circulate as legal tender, regardless of who issues it. The founders clearly meant for money in these United States to always be gold and silver (writings from the era amply confirm this), but that’s the glory of our system: with the right crew on the Supreme Court, plain language in the Constitution can mean anything our rulers want it to mean. For a highly detailed look at the topic, consider Eugene C. Holloway’s Gold, Money, and the U.S. Constitution series.

From The International Forecaster

We have been fortunate enough to make some important calls over the past ten years. The top of the stock market in early April of 2000; the beginning of the gold bull market in June 2000; 9/11 in November ten months before it happened; the Iraq and Afghanistan Wars; the beginning of the real estate bubble; the top of that market in June of 2005; the beginning of the subprime fiasco in 2006 and the beginning of the commercial real estate freeze. We also forecast the terrible financial conditions facing states and the freezing up of insurance and the municipal bond market. We called the recession in February 2007 and told readers to get out of the market at 14,000. That’s with the exception of gold and silver and oil shares. The recession was right on schedule. The depression that began two weeks ago happened quicker than we had anticipated, but it is here and now.

We predicted a fall in consumption, which we estimate at 71% of GDP, a rise in savings, which is now 2.8%, and a fall in debt service not only in real estate, but also in loans and credit card loans. Massive losses continue probably some additional $40 trillion from just 9/08 to 12/09 alone in wealth destruction.

Those who follow and live off the Illuminist line favor a large, deep stimulus and if that doesn’t work than a bigger one in a year. What America needs is job growth, but that cannot happen in any meaningful way until we erect tariffs on goods and services. America has never been able too and will never be able to compete with cheap labor.

One of the solutions passed four years ago was the repatriation of profits from offshore tax havens by transnational Illuminist conglomerates. They returned $35 billion at a 5-1/4% tax rate instead of paying the normal 33%. Our Congress saw fit to reward their masters under the guise of creating jobs. Few if any jobs were created. It was just a giant money laundering exercise.

This solution is again running around Congress, only this time the amount is $550 billion at a 5% tax rate. A reward for the people who in part were responsible for the situation we now find ourselves in. We have a better idea. Let’s have legislation demanding the funds be repatriated and let’s charge normal taxation of 33% and force these ingrates to use the funds for job creation. We’d have taxes for our debt services and funds to get our nation underway again.

America has to come to grips with the fact it is bankrupt. We saw this in the early 1980s, and in the early 1990s and again in 2002-2003. Finally it is here again and moving bad assets off bank balance sheets isn’t going to work this time. This time the Illuminists have gone too far, and they are well aware of that. What we are experiencing has been done many times before in history and it has always been unsuccessful. The problem is that in the past these conspirators have been allowed to live on. This time it will be different.

The elitists have used the same destruction of capital in this depression as they did in the 1930s via a profligate, irresponsible monetary policy. That is endless and mindless increases of money and credit and zero interest rates. Falling interest rates usually cause a weaker dollar. The dollar has topped out of its rally and is making a slow downturn, which would have otherwise been quicker had not other major nations agreed to drop their rates to zero and increase money and credit as well. For the time being this cooperation is buying time for the international financial system and the dollar, but it is doomed to failure. The lowering of interest rates is not a cure for deflation, but poison for the economy and they reinforce deflation. It is interesting to note that under its Charter the Fed cannot be party to monetization of public debt under their charter, but they do so anyway, because Congress authorized it. That is the purchase of Treasury bonds in the open market and using them as collateral for its note and deposit liabilities after the fact. The bottom line is this forces capital to disappear into other investment avenues, such as gold. The dynamics of lower interest rates are continuing and totally injurious to the monetary structure. Throw in the bailouts and you’ve created a monster. That is why gold and silver is your only avenue of escape.

The point of no return was passed in June of 2002, and that is when the issuance of money and credit began to grow seriously. The result is the banking system is already in a state of collapse and the dollar is sure to follow. Looking back at monetary history we know that zero interest rates is pure insanity. The Fed, banking, and Wall Street know this and this helps us to conclude that none of this happed via incompetence or chance, but by deliberate intent.

In the early 1920s the Weimar Republic was hit by hyperinflation that lasted for several years. Germany, in moving into the 1930s, then experienced deflation.

We began deflation five years ago in 2004. That was kept under control with increases in money and credit. The Fed was joined about six months later by most central banks. The vast increases of money and credit continued along with monetization, so we should see the beginnings of hyperinflation soon. That should last at least 2-3 years. That will be followed by deflation and deeper depression. As the trillions in debt is liquidated it will be smothered by the hyperinflation and substantially higher gold and silver prices. The banking system has been broken. The dollar falls next versus other currencies and gold, then all currencies collapse versus gold.

What we are seeing in banking is no solution. The banks have to be purged and allowed to fail. Until that happens there will be no solution. Only a return to a gold standard can regain the confidence and trust of people worldwide. The concept of good and bad banks under present circumstances is ridiculous-moronic. The very concept is mad. Our situation is worse than in the 1930s or in the early 1990s in Scandinavia. The problem under our circumstances is that both banks are bad, because our currency is worthless without gold backing.

If we are correct, and we believe we are, the stimulus package and TARP, plus all the other bailouts are not going to work. This so-called solution is just more of the same, but more of it. When you stop to think of it how can a bankrupt nation with a fiat currency save a banking system that is bankrupt as well? The solution to this is a simple. Back the dollar with gold and set the official price at $2,000 an ounce, although it may be trading at $3,000 in the marketplace. The US Mint would then vastly increase the number of gold coins available for purchase. Of course if the treasury has little or no gold they cannot do this, and the whole system collapses. Otherwise, with gold backing, capital would flow to America. Such a currency would allow nominal interest rates and would draw users and prices would remain stable. Eventually all countries would do likewise, set a world gold standard, and tariffs that suited their circumstances. If a nation was short on gold or had none, they’d have to sell assets to others to accumulate gold.

If the forgoing is not adopted the world will continue to plunge into monetary chaos. Revolutions would take place as starvation and warfare stalked the land. We expect the worst, because no change has taken place in Washington. We have virtually the same purchased and compromised Congress. The President’s new advisors will bring about the same results we have seen over the past eight years. That is the grand push for a world currency and a world government. These are all the same characters along with banking and Wall Street that caused these problems in the first place and supposedly are finding solutions to our dilemma. In finality, if we do not take our government back from these evil, miscreants we are doomed. Your solution, as we have pointed out so often, is to prepare. Get rid of credit card debt. Purchase a water filter, freeze-dried and dehydrated foods, be able to defend your home and family, with extra assets buy gold and silver coins and shares. If you can, still try to save the system from within. If we cannot, you know what the alternative is.

Due to the pending stimulus package and another probably $2 trillion stimulus package in 2010, the bottom of the housing market won’t be hit until 2012 or even later. Moody’s has downgraded 2,446 different classes of RMBS, Residential Mortgage Backed Securities. ALT-A loans originated in the second half of 2007 will experience 25.5% losses of original balance, versus 23.9% of the first half of 2007 deals, 22.1% for the second half of 2006 and 17.1% for the first half of 2006 deals. The CDOs and SIVs are soon going to be written off and that could cost $2 trillion. It will take at least until 2017 to put a new credit system in place. It will take years beyond that for the Fed and the Treasury to sell off the toxic waste.

By the time next year’s stimulus package is unveiled, the Dow should be trading between 3,800 and 5,500. That is bad, but what is worse is that pension funds about 80% funded, will be 40% to 50% funded. We ask how do they pay the promised benefits? We don’t think they can and pensions could be cut 40 to 50 percent. We wrote about this six years ago and called it the pension bomb. On the municipal level the situation will be much worse. Some states, such as California, which is bankrupt, may not pay anything at all. Calpers and the other state fund are on the edge of insolvency.

Treasury Secretary Timothy Geithner’s efforts to restore trust and confidence in our markets have fallen on deaf ears. We still do not know all of what he intends to do with $350 billion in TARP funds. What we do know for sure is that he wants to give financial firms as much of it as possible. He wants a repeat of TARP I, the theft of taxpayer funds to bail out his masters. His plan entails a price of $2.75 trillion and the ‘what he calls’ nationalization of the banking system, which in reality is the consolidation and further privatization of the banking system – a tight control by the privately owned Fed on as much of the banking system as possible.

The stimulus plan to create more debt to spend our way into prosperity is being passed simultaneously, as the decision on how TARP is to be spent.

First Mr. Geithner wants a $1 trillion “public private investment fund” to value so-called troubled assets, also known as toxic garbage. He wants to leverage Treasury funds of $100 billion up to $1 trillion in loans to consumers and businesses and that would require lenders who are loaned those funds to actually lend them, not hoard them as they are presently. $600 billion would go to Fannie Mae and Freddie Mac to insure more failing loans and to purchase CDOs and SIVs, plus $50 billion for foreclosure prevention by rewriting loans, so people will have lower payments so their loans won’t go into foreclosure. Plus, an expansion of SBA loans.

The wealthy of Wall Street and the City of London via this “public private investment fund” will cherry-pick the best loans for undervalued prices. They’ll be purchased for $0.10 to $0.30 on the dollar. Billionaires will then quickly become trillionaires. These will be the donors to our president the “friends of Barak,” FOB if you please. That leaves the rest of the real garbage to be held by the taxpayers. This is the price we have to pay to keep deadbeats in their homes. People who should have never had loans in the first place.

The current Geithner proposal for this $1 trillion “public private investment fund” is to guarantee that the value of the toxic waste will not fall below a designated floor value. The anointed FOB buyers will be indemnified against loss of any consequence. In other words the FOB’s get sweetheart deals. For this the taxpayers get nothing but the garbage. If these toxic assets fall below the floor price the public pays for it. It is a terrible deal for the American public. What should be done is that all these banks, brokers and industrial companies should be allowed to fail. All of the equity and unsecured debt should be wiped out and then they should be really nationalized. They can then be resold at a later date to new shareholders. The elitists and politicians do not want that because then they won’t be able to steal these companies.

These crooks are hiding the values of assets, some of which are totally worthless. If we have a bad bank all the garbage will come off the balance sheets of Goldman, Morgan, the other money center legacy banks, Wall Street, insurance companies, private equity dealers and corporate gamblers like GMAC and GE.

Geithner intends to buy these assets using our money at close to par (perhaps at 80%) and then rebill it to the private part of the private-public partnership at $0.15 on the dollar with a quarantee against loss. A deal made in hell.

This is why the Fed, banks and Wall Street want the mark-to-market accounting standards repealed. How can the insiders get huge bonuses and pay large dividends if the toxic waste is removed at its real value of $0.15 on the dollar? The postscript is no matter what they do it will be a disaster for taxpayers.

Each plan for the past 20 months has been a loser, because the people who created the disaster are the ones supposedly fixing it. You must keep in mind there is no intention to fix anything. It is to enrich the rich and destroy the system so that we can have a World Currency and One-World Government. The hopes of the public have been bashed many times. The return to normality hasn’t occurred in 20 months. If fact, the situation is much worse. The elitists have hit a stonewall. Few believe them anymore. There is no trust left.

There has been much talk by fane-stream media shills, economists and newsletter writers to the effect that deflationary forces have taken over our economy and that any impact from inflationary forces is behind us or is rapidly waning. Those that advocate this view either do not understand the end game of the Illuminati, or they are disinformation operatives for the US government and its Puppet Masters, the evil, megalomaniacal, satanic, trillionaire sociopaths who comprise our shadow government. The Fed has no intention of letting deflation take over until there is no possible way to stop it, which could take as long as two to three years from now. If deflation takes over, then America goes immediately bankrupt and the dollar is toast. That would end the gravy train of salaries, bonuses, dividends, commissions and spreads which are lining the pockets of the Puppet Masters and their henchmen, the forces of “Chaos,” who are now using taxpayer bailout money in substitution for profits which are no longer being generated by their transnational financial and corporate institutions which they have intentionally and malevolently bankrupted to collapse the world economy and to pave the way for world government.

To keep this gravy train going, re-inflation is on its way. It will be used to set up sucker-dupes around the world for the final sting operation whereby the elitists will bail out of “worthless paper” and assets that are denominated in such, using the proceeds to buy up real assets while everyone else is left holding the toilet paper called Federal Reserve notes, all the while thinking that we are in recovery and that the big “D” has been avoided. Most will not realize what is happening until it is too late because the transactions for the sting will be done out of view of the public and regulators via unregulated dark pools of liquidity and OTC derivative markets as the Big Sting Two is perpetrated against them. These morons will be chasing gold and silver as they suddenly skyrocket with little warning due to the huge transfers taking place outside of public view that will eventually be leaked to the general markets after the Illuminati have sated themselves on as many real assets as they can get their hands on. If you are not in when this happens, which could literally occur at any time from this point forward, the train will leave you slack-jawed at the station.


From The International Forecaster

We have been fortunate enough to make some important calls over the past ten years. The top of the stock market in early April of 2000; the beginning of the gold bull market in June 2000; 9/11 in November ten months before it happened; the Iraq and Afghanistan Wars; the beginning of the real estate bubble; the top of that market in June of 2005; the beginning of the subprime fiasco in 2006 and the beginning of the commercial real estate freeze. We also forecast the terrible financial conditions facing states and the freezing up of insurance and the municipal bond market. We called the recession in February 2007 and told readers to get out of the market at 14,000. That’s with the exception of gold and silver and oil shares. The recession was right on schedule. The depression that began two weeks ago happened quicker than we had anticipated, but it is here and now.

We predicted a fall in consumption, which we estimate at 71% of GDP, a rise in savings, which is now 2.8%, and a fall in debt service not only in real estate, but also in loans and credit card loans. Massive losses continue probably some additional $40 trillion from just 9/08 to 12/09 alone in wealth destruction.

Those who follow and live off the Illuminist line favor a large, deep stimulus and if that doesn’t work than a bigger one in a year. What America needs is job growth, but that cannot happen in any meaningful way until we erect tariffs on goods and services. America has never been able too and will never be able to compete with cheap labor.

One of the solutions passed four years ago was the repatriation of profits from offshore tax havens by transnational Illuminist conglomerates. They returned $35 billion at a 5-1/4% tax rate instead of paying the normal 33%. Our Congress saw fit to reward their masters under the guise of creating jobs. Few if any jobs were created. It was just a giant money laundering exercise.

This solution is again running around Congress, only this time the amount is $550 billion at a 5% tax rate. A reward for the people who in part were responsible for the situation we now find ourselves in. We have a better idea. Let’s have legislation demanding the funds be repatriated and let’s charge normal taxation of 33% and force these ingrates to use the funds for job creation. We’d have taxes for our debt services and funds to get our nation underway again.

America has to come to grips with the fact it is bankrupt. We saw this in the early 1980s, and in the early 1990s and again in 2002-2003. Finally it is here again and moving bad assets off bank balance sheets isn’t going to work this time. This time the Illuminists have gone too far, and they are well aware of that. What we are experiencing has been done many times before in history and it has always been unsuccessful. The problem is that in the past these conspirators have been allowed to live on. This time it will be different.

The elitists have used the same destruction of capital in this depression as they did in the 1930s via a profligate, irresponsible monetary policy. That is endless and mindless increases of money and credit and zero interest rates. Falling interest rates usually cause a weaker dollar. The dollar has topped out of its rally and is making a slow downturn, which would have otherwise been quicker had not other major nations agreed to drop their rates to zero and increase money and credit as well. For the time being this cooperation is buying time for the international financial system and the dollar, but it is doomed to failure. The lowering of interest rates is not a cure for deflation, but poison for the economy and they reinforce deflation. It is interesting to note that under its Charter the Fed cannot be party to monetization of public debt under their charter, but they do so anyway, because Congress authorized it. That is the purchase of Treasury bonds in the open market and using them as collateral for its note and deposit liabilities after the fact. The bottom line is this forces capital to disappear into other investment avenues, such as gold. The dynamics of lower interest rates are continuing and totally injurious to the monetary structure. Throw in the bailouts and you’ve created a monster. That is why gold and silver is your only avenue of escape.

The point of no return was passed in June of 2002, and that is when the issuance of money and credit began to grow seriously. The result is the banking system is already in a state of collapse and the dollar is sure to follow. Looking back at monetary history we know that zero interest rates is pure insanity. The Fed, banking, and Wall Street know this and this helps us to conclude that none of this happed via incompetence or chance, but by deliberate intent.

In the early 1920s the Weimar Republic was hit by hyperinflation that lasted for several years. Germany, in moving into the 1930s, then experienced deflation.

We began deflation five years ago in 2004. That was kept under control with increases in money and credit. The Fed was joined about six months later by most central banks. The vast increases of money and credit continued along with monetization, so we should see the beginnings of hyperinflation soon. That should last at least 2-3 years. That will be followed by deflation and deeper depression. As the trillions in debt is liquidated it will be smothered by the hyperinflation and substantially higher gold and silver prices. The banking system has been broken. The dollar falls next versus other currencies and gold, then all currencies collapse versus gold.

What we are seeing in banking is no solution. The banks have to be purged and allowed to fail. Until that happens there will be no solution. Only a return to a gold standard can regain the confidence and trust of people worldwide. The concept of good and bad banks under present circumstances is ridiculous-moronic. The very concept is mad. Our situation is worse than in the 1930s or in the early 1990s in Scandinavia. The problem under our circumstances is that both banks are bad, because our currency is worthless without gold backing.

If we are correct, and we believe we are, the stimulus package and TARP, plus all the other bailouts are not going to work. This so-called solution is just more of the same, but more of it. When you stop to think of it how can a bankrupt nation with a fiat currency save a banking system that is bankrupt as well? The solution to this is a simple. Back the dollar with gold and set the official price at $2,000 an ounce, although it may be trading at $3,000 in the marketplace. The US Mint would then vastly increase the number of gold coins available for purchase. Of course if the treasury has little or no gold they cannot do this, and the whole system collapses. Otherwise, with gold backing, capital would flow to America. Such a currency would allow nominal interest rates and would draw users and prices would remain stable. Eventually all countries would do likewise, set a world gold standard, and tariffs that suited their circumstances. If a nation was short on gold or had none, they’d have to sell assets to others to accumulate gold.

If the forgoing is not adopted the world will continue to plunge into monetary chaos. Revolutions would take place as starvation and warfare stalked the land. We expect the worst, because no change has taken place in Washington. We have virtually the same purchased and compromised Congress. The President’s new advisors will bring about the same results we have seen over the past eight years. That is the grand push for a world currency and a world government. These are all the same characters along with banking and Wall Street that caused these problems in the first place and supposedly are finding solutions to our dilemma. In finality, if we do not take our government back from these evil, miscreants we are doomed. Your solution, as we have pointed out so often, is to prepare. Get rid of credit card debt. Purchase a water filter, freeze-dried and dehydrated foods, be able to defend your home and family, with extra assets buy gold and silver coins and shares. If you can, still try to save the system from within. If we cannot, you know what the alternative is.

Due to the pending stimulus package and another probably $2 trillion stimulus package in 2010, the bottom of the housing market won’t be hit until 2012 or even later. Moody’s has downgraded 2,446 different classes of RMBS, Residential Mortgage Backed Securities. ALT-A loans originated in the second half of 2007 will experience 25.5% losses of original balance, versus 23.9% of the first half of 2007 deals, 22.1% for the second half of 2006 and 17.1% for the first half of 2006 deals. The CDOs and SIVs are soon going to be written off and that could cost $2 trillion. It will take at least until 2017 to put a new credit system in place. It will take years beyond that for the Fed and the Treasury to sell off the toxic waste.

By the time next year’s stimulus package is unveiled, the Dow should be trading between 3,800 and 5,500. That is bad, but what is worse is that pension funds about 80% funded, will be 40% to 50% funded. We ask how do they pay the promised benefits? We don’t think they can and pensions could be cut 40 to 50 percent. We wrote about this six years ago and called it the pension bomb. On the municipal level the situation will be much worse. Some states, such as California, which is bankrupt, may not pay anything at all. Calpers and the other state fund are on the edge of insolvency.

Treasury Secretary Timothy Geithner’s efforts to restore trust and confidence in our markets have fallen on deaf ears. We still do not know all of what he intends to do with $350 billion in TARP funds. What we do know for sure is that he wants to give financial firms as much of it as possible. He wants a repeat of TARP I, the theft of taxpayer funds to bail out his masters. His plan entails a price of $2.75 trillion and the ‘what he calls’ nationalization of the banking system, which in reality is the consolidation and further privatization of the banking system – a tight control by the privately owned Fed on as much of the banking system as possible.

The stimulus plan to create more debt to spend our way into prosperity is being passed simultaneously, as the decision on how TARP is to be spent.

First Mr. Geithner wants a $1 trillion “public private investment fund” to value so-called troubled assets, also known as toxic garbage. He wants to leverage Treasury funds of $100 billion up to $1 trillion in loans to consumers and businesses and that would require lenders who are loaned those funds to actually lend them, not hoard them as they are presently. $600 billion would go to Fannie Mae and Freddie Mac to insure more failing loans and to purchase CDOs and SIVs, plus $50 billion for foreclosure prevention by rewriting loans, so people will have lower payments so their loans won’t go into foreclosure. Plus, an expansion of SBA loans.

The wealthy of Wall Street and the City of London via this “public private investment fund” will cherry-pick the best loans for undervalued prices. They’ll be purchased for $0.10 to $0.30 on the dollar. Billionaires will then quickly become trillionaires. These will be the donors to our president the “friends of Barak,” FOB if you please. That leaves the rest of the real garbage to be held by the taxpayers. This is the price we have to pay to keep deadbeats in their homes. People who should have never had loans in the first place.

The current Geithner proposal for this $1 trillion “public private investment fund” is to guarantee that the value of the toxic waste will not fall below a designated floor value. The anointed FOB buyers will be indemnified against loss of any consequence. In other words the FOB’s get sweetheart deals. For this the taxpayers get nothing but the garbage. If these toxic assets fall below the floor price the public pays for it. It is a terrible deal for the American public. What should be done is that all these banks, brokers and industrial companies should be allowed to fail. All of the equity and unsecured debt should be wiped out and then they should be really nationalized. They can then be resold at a later date to new shareholders. The elitists and politicians do not want that because then they won’t be able to steal these companies.

These crooks are hiding the values of assets, some of which are totally worthless. If we have a bad bank all the garbage will come off the balance sheets of Goldman, Morgan, the other money center legacy banks, Wall Street, insurance companies, private equity dealers and corporate gamblers like GMAC and GE.

Geithner intends to buy these assets using our money at close to par (perhaps at 80%) and then rebill it to the private part of the private-public partnership at $0.15 on the dollar with a quarantee against loss. A deal made in hell.

This is why the Fed, banks and Wall Street want the mark-to-market accounting standards repealed. How can the insiders get huge bonuses and pay large dividends if the toxic waste is removed at its real value of $0.15 on the dollar? The postscript is no matter what they do it will be a disaster for taxpayers.

Each plan for the past 20 months has been a loser, because the people who created the disaster are the ones supposedly fixing it. You must keep in mind there is no intention to fix anything. It is to enrich the rich and destroy the system so that we can have a World Currency and One-World Government. The hopes of the public have been bashed many times. The return to normality hasn’t occurred in 20 months. If fact, the situation is much worse. The elitists have hit a stonewall. Few believe them anymore. There is no trust left.

There has been much talk by fane-stream media shills, economists and newsletter writers to the effect that deflationary forces have taken over our economy and that any impact from inflationary forces is behind us or is rapidly waning. Those that advocate this view either do not understand the end game of the Illuminati, or they are disinformation operatives for the US government and its Puppet Masters, the evil, megalomaniacal, satanic, trillionaire sociopaths who comprise our shadow government. The Fed has no intention of letting deflation take over until there is no possible way to stop it, which could take as long as two to three years from now. If deflation takes over, then America goes immediately bankrupt and the dollar is toast. That would end the gravy train of salaries, bonuses, dividends, commissions and spreads which are lining the pockets of the Puppet Masters and their henchmen, the forces of “Chaos,” who are now using taxpayer bailout money in substitution for profits which are no longer being generated by their transnational financial and corporate institutions which they have intentionally and malevolently bankrupted to collapse the world economy and to pave the way for world government.

To keep this gravy train going, re-inflation is on its way. It will be used to set up sucker-dupes around the world for the final sting operation whereby the elitists will bail out of “worthless paper” and assets that are denominated in such, using the proceeds to buy up real assets while everyone else is left holding the toilet paper called Federal Reserve notes, all the while thinking that we are in recovery and that the big “D” has been avoided. Most will not realize what is happening until it is too late because the transactions for the sting will be done out of view of the public and regulators via unregulated dark pools of liquidity and OTC derivative markets as the Big Sting Two is perpetrated against them. These morons will be chasing gold and silver as they suddenly skyrocket with little warning due to the huge transfers taking place outside of public view that will eventually be leaked to the general markets after the Illuminati have sated themselves on as many real assets as they can get their hands on. If you are not in when this happens, which could literally occur at any time from this point forward, the train will leave you slack-jawed at the station.


From The International Forecaster

We have been fortunate enough to make some important calls over the past ten years. The top of the stock market in early April of 2000; the beginning of the gold bull market in June 2000; 9/11 in November ten months before it happened; the Iraq and Afghanistan Wars; the beginning of the real estate bubble; the top of that market in June of 2005; the beginning of the subprime fiasco in 2006 and the beginning of the commercial real estate freeze. We also forecast the terrible financial conditions facing states and the freezing up of insurance and the municipal bond market. We called the recession in February 2007 and told readers to get out of the market at 14,000. That’s with the exception of gold and silver and oil shares. The recession was right on schedule. The depression that began two weeks ago happened quicker than we had anticipated, but it is here and now.

We predicted a fall in consumption, which we estimate at 71% of GDP, a rise in savings, which is now 2.8%, and a fall in debt service not only in real estate, but also in loans and credit card loans. Massive losses continue probably some additional $40 trillion from just 9/08 to 12/09 alone in wealth destruction.

Those who follow and live off the Illuminist line favor a large, deep stimulus and if that doesn’t work than a bigger one in a year. What America needs is job growth, but that cannot happen in any meaningful way until we erect tariffs on goods and services. America has never been able too and will never be able to compete with cheap labor.

One of the solutions passed four years ago was the repatriation of profits from offshore tax havens by transnational Illuminist conglomerates. They returned $35 billion at a 5-1/4% tax rate instead of paying the normal 33%. Our Congress saw fit to reward their masters under the guise of creating jobs. Few if any jobs were created. It was just a giant money laundering exercise.

This solution is again running around Congress, only this time the amount is $550 billion at a 5% tax rate. A reward for the people who in part were responsible for the situation we now find ourselves in. We have a better idea. Let’s have legislation demanding the funds be repatriated and let’s charge normal taxation of 33% and force these ingrates to use the funds for job creation. We’d have taxes for our debt services and funds to get our nation underway again.

America has to come to grips with the fact it is bankrupt. We saw this in the early 1980s, and in the early 1990s and again in 2002-2003. Finally it is here again and moving bad assets off bank balance sheets isn’t going to work this time. This time the Illuminists have gone too far, and they are well aware of that. What we are experiencing has been done many times before in history and it has always been unsuccessful. The problem is that in the past these conspirators have been allowed to live on. This time it will be different.

The elitists have used the same destruction of capital in this depression as they did in the 1930s via a profligate, irresponsible monetary policy. That is endless and mindless increases of money and credit and zero interest rates. Falling interest rates usually cause a weaker dollar. The dollar has topped out of its rally and is making a slow downturn, which would have otherwise been quicker had not other major nations agreed to drop their rates to zero and increase money and credit as well. For the time being this cooperation is buying time for the international financial system and the dollar, but it is doomed to failure. The lowering of interest rates is not a cure for deflation, but poison for the economy and they reinforce deflation. It is interesting to note that under its Charter the Fed cannot be party to monetization of public debt under their charter, but they do so anyway, because Congress authorized it. That is the purchase of Treasury bonds in the open market and using them as collateral for its note and deposit liabilities after the fact. The bottom line is this forces capital to disappear into other investment avenues, such as gold. The dynamics of lower interest rates are continuing and totally injurious to the monetary structure. Throw in the bailouts and you’ve created a monster. That is why gold and silver is your only avenue of escape.

The point of no return was passed in June of 2002, and that is when the issuance of money and credit began to grow seriously. The result is the banking system is already in a state of collapse and the dollar is sure to follow. Looking back at monetary history we know that zero interest rates is pure insanity. The Fed, banking, and Wall Street know this and this helps us to conclude that none of this happed via incompetence or chance, but by deliberate intent.

In the early 1920s the Weimar Republic was hit by hyperinflation that lasted for several years. Germany, in moving into the 1930s, then experienced deflation.

We began deflation five years ago in 2004. That was kept under control with increases in money and credit. The Fed was joined about six months later by most central banks. The vast increases of money and credit continued along with monetization, so we should see the beginnings of hyperinflation soon. That should last at least 2-3 years. That will be followed by deflation and deeper depression. As the trillions in debt is liquidated it will be smothered by the hyperinflation and substantially higher gold and silver prices. The banking system has been broken. The dollar falls next versus other currencies and gold, then all currencies collapse versus gold.

What we are seeing in banking is no solution. The banks have to be purged and allowed to fail. Until that happens there will be no solution. Only a return to a gold standard can regain the confidence and trust of people worldwide. The concept of good and bad banks under present circumstances is ridiculous-moronic. The very concept is mad. Our situation is worse than in the 1930s or in the early 1990s in Scandinavia. The problem under our circumstances is that both banks are bad, because our currency is worthless without gold backing.

If we are correct, and we believe we are, the stimulus package and TARP, plus all the other bailouts are not going to work. This so-called solution is just more of the same, but more of it. When you stop to think of it how can a bankrupt nation with a fiat currency save a banking system that is bankrupt as well? The solution to this is a simple. Back the dollar with gold and set the official price at $2,000 an ounce, although it may be trading at $3,000 in the marketplace. The US Mint would then vastly increase the number of gold coins available for purchase. Of course if the treasury has little or no gold they cannot do this, and the whole system collapses. Otherwise, with gold backing, capital would flow to America. Such a currency would allow nominal interest rates and would draw users and prices would remain stable. Eventually all countries would do likewise, set a world gold standard, and tariffs that suited their circumstances. If a nation was short on gold or had none, they’d have to sell assets to others to accumulate gold.

If the forgoing is not adopted the world will continue to plunge into monetary chaos. Revolutions would take place as starvation and warfare stalked the land. We expect the worst, because no change has taken place in Washington. We have virtually the same purchased and compromised Congress. The President’s new advisors will bring about the same results we have seen over the past eight years. That is the grand push for a world currency and a world government. These are all the same characters along with banking and Wall Street that caused these problems in the first place and supposedly are finding solutions to our dilemma. In finality, if we do not take our government back from these evil, miscreants we are doomed. Your solution, as we have pointed out so often, is to prepare. Get rid of credit card debt. Purchase a water filter, freeze-dried and dehydrated foods, be able to defend your home and family, with extra assets buy gold and silver coins and shares. If you can, still try to save the system from within. If we cannot, you know what the alternative is.

Due to the pending stimulus package and another probably $2 trillion stimulus package in 2010, the bottom of the housing market won’t be hit until 2012 or even later. Moody’s has downgraded 2,446 different classes of RMBS, Residential Mortgage Backed Securities. ALT-A loans originated in the second half of 2007 will experience 25.5% losses of original balance, versus 23.9% of the first half of 2007 deals, 22.1% for the second half of 2006 and 17.1% for the first half of 2006 deals. The CDOs and SIVs are soon going to be written off and that could cost $2 trillion. It will take at least until 2017 to put a new credit system in place. It will take years beyond that for the Fed and the Treasury to sell off the toxic waste.

By the time next year’s stimulus package is unveiled, the Dow should be trading between 3,800 and 5,500. That is bad, but what is worse is that pension funds about 80% funded, will be 40% to 50% funded. We ask how do they pay the promised benefits? We don’t think they can and pensions could be cut 40 to 50 percent. We wrote about this six years ago and called it the pension bomb. On the municipal level the situation will be much worse. Some states, such as California, which is bankrupt, may not pay anything at all. Calpers and the other state fund are on the edge of insolvency.

Treasury Secretary Timothy Geithner’s efforts to restore trust and confidence in our markets have fallen on deaf ears. We still do not know all of what he intends to do with $350 billion in TARP funds. What we do know for sure is that he wants to give financial firms as much of it as possible. He wants a repeat of TARP I, the theft of taxpayer funds to bail out his masters. His plan entails a price of $2.75 trillion and the ‘what he calls’ nationalization of the banking system, which in reality is the consolidation and further privatization of the banking system – a tight control by the privately owned Fed on as much of the banking system as possible.

The stimulus plan to create more debt to spend our way into prosperity is being passed simultaneously, as the decision on how TARP is to be spent.

First Mr. Geithner wants a $1 trillion “public private investment fund” to value so-called troubled assets, also known as toxic garbage. He wants to leverage Treasury funds of $100 billion up to $1 trillion in loans to consumers and businesses and that would require lenders who are loaned those funds to actually lend them, not hoard them as they are presently. $600 billion would go to Fannie Mae and Freddie Mac to insure more failing loans and to purchase CDOs and SIVs, plus $50 billion for foreclosure prevention by rewriting loans, so people will have lower payments so their loans won’t go into foreclosure. Plus, an expansion of SBA loans.

The wealthy of Wall Street and the City of London via this “public private investment fund” will cherry-pick the best loans for undervalued prices. They’ll be purchased for $0.10 to $0.30 on the dollar. Billionaires will then quickly become trillionaires. These will be the donors to our president the “friends of Barak,” FOB if you please. That leaves the rest of the real garbage to be held by the taxpayers. This is the price we have to pay to keep deadbeats in their homes. People who should have never had loans in the first place.

The current Geithner proposal for this $1 trillion “public private investment fund” is to guarantee that the value of the toxic waste will not fall below a designated floor value. The anointed FOB buyers will be indemnified against loss of any consequence. In other words the FOB’s get sweetheart deals. For this the taxpayers get nothing but the garbage. If these toxic assets fall below the floor price the public pays for it. It is a terrible deal for the American public. What should be done is that all these banks, brokers and industrial companies should be allowed to fail. All of the equity and unsecured debt should be wiped out and then they should be really nationalized. They can then be resold at a later date to new shareholders. The elitists and politicians do not want that because then they won’t be able to steal these companies.

These crooks are hiding the values of assets, some of which are totally worthless. If we have a bad bank all the garbage will come off the balance sheets of Goldman, Morgan, the other money center legacy banks, Wall Street, insurance companies, private equity dealers and corporate gamblers like GMAC and GE.

Geithner intends to buy these assets using our money at close to par (perhaps at 80%) and then rebill it to the private part of the private-public partnership at $0.15 on the dollar with a quarantee against loss. A deal made in hell.

This is why the Fed, banks and Wall Street want the mark-to-market accounting standards repealed. How can the insiders get huge bonuses and pay large dividends if the toxic waste is removed at its real value of $0.15 on the dollar? The postscript is no matter what they do it will be a disaster for taxpayers.

Each plan for the past 20 months has been a loser, because the people who created the disaster are the ones supposedly fixing it. You must keep in mind there is no intention to fix anything. It is to enrich the rich and destroy the system so that we can have a World Currency and One-World Government. The hopes of the public have been bashed many times. The return to normality hasn’t occurred in 20 months. If fact, the situation is much worse. The elitists have hit a stonewall. Few believe them anymore. There is no trust left.

There has been much talk by fane-stream media shills, economists and newsletter writers to the effect that deflationary forces have taken over our economy and that any impact from inflationary forces is behind us or is rapidly waning. Those that advocate this view either do not understand the end game of the Illuminati, or they are disinformation operatives for the US government and its Puppet Masters, the evil, megalomaniacal, satanic, trillionaire sociopaths who comprise our shadow government. The Fed has no intention of letting deflation take over until there is no possible way to stop it, which could take as long as two to three years from now. If deflation takes over, then America goes immediately bankrupt and the dollar is toast. That would end the gravy train of salaries, bonuses, dividends, commissions and spreads which are lining the pockets of the Puppet Masters and their henchmen, the forces of “Chaos,” who are now using taxpayer bailout money in substitution for profits which are no longer being generated by their transnational financial and corporate institutions which they have intentionally and malevolently bankrupted to collapse the world economy and to pave the way for world government.

To keep this gravy train going, re-inflation is on its way. It will be used to set up sucker-dupes around the world for the final sting operation whereby the elitists will bail out of “worthless paper” and assets that are denominated in such, using the proceeds to buy up real assets while everyone else is left holding the toilet paper called Federal Reserve notes, all the while thinking that we are in recovery and that the big “D” has been avoided. Most will not realize what is happening until it is too late because the transactions for the sting will be done out of view of the public and regulators via unregulated dark pools of liquidity and OTC derivative markets as the Big Sting Two is perpetrated against them. These morons will be chasing gold and silver as they suddenly skyrocket with little warning due to the huge transfers taking place outside of public view that will eventually be leaked to the general markets after the Illuminati have sated themselves on as many real assets as they can get their hands on. If you are not in when this happens, which could literally occur at any time from this point forward, the train will leave you slack-jawed at the station.


(NaturalNews) While Congress has passed an $800+ billion economic stimulus plan, almost everybody in America seems caught up in a common economic fallacy: The idea that Government can “create” jobs through debt spending.

Government spending of debt money does not result in any net creation of jobs at all. It only confiscates wealth from private citizens and forces them to pay for centrally-planned jobs that the real economy usually neither needs nor benefits from.

Consider three people living in an island, running their own tiny economy. Bob, Sarah and Charlie are all farmers who grow their own food, making an honest living by working 8 hours a day to create the food, clothing and shelter they need to survive.

One day, Charlie decides he wants to be the Governor of the island. He tells Bob and Sarah that as Governor, he’ll bring wealth and prosperity to them both. Initially, that sounds good, so Bob and Sarah agree to elect him Governor.

Then it turns out that the Governor is busy governing things on the island (i.e. deciding what everybody else should do), so he has no time to grow his own food. So he initiates a 50% tax on the productivity of Bob and Sarah, confiscating their food, clothing and resources in order to provide those items to himself without actually having to work for them. (This is a key function of government: To confiscate wealth from those who really work and redistribute it to those who pretend to work.)

Now, Bob and Sarah each have a choice: They can either work twice as much in order to pay their tax and still have enough to survive, or they can quit working altogether and hope to get aid from the government.

Sarah decides to work twice as much, so she starts working 16 hours a day, earning enough to pay the taxes to the Governor while still having some remaining food to feed herself and her family. Bob, on the other hand, decides he doesn’t want to work 16 hours a day and would rather do nothing and apply to the Governor for “public assistance.”

So now on this island of three people, where each of the three people used to work to feed themselves, only one person is working (Sarah), and the other two are living off the wealth that’s being confiscated from her efforts.

One day Charlie, the Governor, says he has a solution! He says he will write a series of IOUs to Sarah in exchange for an extra portion of her food and other belongings. Using that currency borrowed from Sarah, he says he will “create a new job” for Bob and “end unemployment on the island.”

Sarah reluctantly agrees and turns over the fruits of her labor to the Governor, who injvents a job for Bob. “Bob,” he says, “We need to build a bridge across this island!” And with the wave of his hand, he puts Bob to work creating a bridge (that nobody needs) while getting paid by wealth that has been confiscated from the only person on the island still working (Sarah).

So now we have ONE person actually doing productive work, a second person living off the confiscated wealth of that person (the Governor), and a third person working a useless job that’s now paid for by the first person as well. This means we have ONE person supporting THREE. And while the island is at “full employment,” two out of three people are actually doing jobs that don’t materially contribute to the wealth and abundance of island’s residents.

And the best part? Guess who gets to work even more to pay back the IOUs that the Governor traded with Sarah? Well Sarah, of course, because those IOUs are public debt paid back by taxpayers.

The problem on this little island is NOT that insufficient money is being spent on an economic stimulus program; the problem is that the island suffers from too many bureaucrats and too much debt spending. The solution? Fire the Governor and the government worker, shrink the size of government and get everybody back to working their own gardens, growing their own food and supporting their own families. Productivity on the island would triple, and people would have to get back to doing honest, productive work instead of living like parasites off the efforts of taxpayers.


Government jobs are created with confiscated wealth

Although greatly simplified, this little scenario demonstrates the ridiculousness of anyone who believes government can “create” jobs. Government creates no net increase in jobs through debt spending. It only confiscates wealth from those who are willing to work and justifies its own wealth confiscation efforts by pretending to offer solutions to the very people it is stealing from.

In some cases, this is justifiably important: You need schoolteachers, bridges, and roads to run a successful society. Cops and firemen, court judges, and international delegates are necessary, too. But remember this: 85% of government money is spent on just three things: War, Disease and Debt. That’s where most of your tax dollars actually go (see corrected figures below). Only about 15% of the money you send Uncle Sam goes to pay for anything useful. Most of it is just wasted away by a government that believes its debt problem can be solved by more debt spending.

Total U.S. Federal Budget for 2008: $2.9 trillion

If you look at where U.S. government spending actually goes, more than 85% is spent on these three things:

1) WAR: Department of Defense ($481.4 billion) + War on Terror ($145.2 billion) + Dept. of Veterans Affairs ($39.4 billion) = $666 billion

2) DISEASE: Medicare ($386 billion) + Medicaid ($209 billion) = $595 billion

3) DEBT: Debt to the people: Social Security ($608 billion), Welfare ($324 billion) and Interest on National Debt ($261 billion) = $1,193 billion

Combined spending on War, Disease and Debt: $2,454 billion ($2.5 trillion), which is 85% of the total expenditures by the federal government.

Source: http://en.wikipedia.org/wiki/United…

Now, Obama wants to write out $800+ billion in new IOUs and use that money to “stimulate” the economy. This is equivalent to confiscating about $5,000 from each and every taxpayer in America today (depending on the number of taxpayers you use for the calculation). It’s the equivalent of saying to Sarah that she needs to turn over all her garden food for the next two months in order to “stimulate” the island economy. And how will that economy be stimulated? By giving that food to people who believe they are entitled to more abundance than Sarah without actually having to work for it. Before long, Bob will be riding in a private limo and flying in a private jet, complaining to the Governor that his industry of bridge building provides 1/3 of the jobs of the entire economy, and he needs more money or the island economy will collapse!

I’m not sure America can survive much more of this debt-spending “stimulus.” The U.S. economy has, in large part, become illusory, propped up by yet more bailout money being spent to create the illusion of meaningful jobs. The idea of saving money has been abandoned in favor of endless spending at both the consumer level and the national level. If this philosophy does not change, the financial outcome will be disastrous.

America needs more savings, not more spending. It needs to get the government off people’s backs, not create even more government to centrally plan yet more “stimulus” programs paid for by confiscating wealth from the fast-shrinking pool of people still working private-sector jobs in America today.

One thing’s for sure: The people in Washington D.C. need to read Economics In One Lesson by Henry Hazlitt: http://www.amazon.com/Economics-One…

About the author: Mike Adams is a natural health researcher and author with a passion for teaching people how to improve their health He has authored and published thousands of articles, interviews, consumers guides, and books on topics like health and the environment, impacting the lives of millions of readers around the world who are experiencing phenomenal health benefits from reading his articles. Adams is an honest, independent journalist and accepts no money or commissions on the third-party products he writes about or the companies he promotes. In 2007, Adams launched EcoLEDs, a maker of super bright LED light bulbs that are 1000% more energy efficient than incandescent lights. He also founded an environmentally-friendly online retailer called BetterLifeGoods.com that uses retail profits to help support consumer advocacy programs. He’s also the founder of a well known HTML email software company whose ‘Email Marketing Director’ software currently runs the NaturalNews subscription database. Adams also serves as the executive director of the Consumer Wellness Center, a non-profit consumer protection group, and pursues hobbies such as Pilates, Capoeira, nature macrophotography and organic gardening. He’s also author of numerous health books published by Truth Publishing and is the creator of several consumer-oriented grassroots campaigns, including the Spam. Don’t Buy It! campaign, and the free downloadable Honest Food Guide. He also created the free reference sites HerbReference.com and HealingFoodReference.com. Adams believes in free speech, free access to nutritional supplements and the ending of corporate control over medicines, genes and seeds. Known as the ‘Health Ranger,’ Adams’ personal health statistics and mission statements are located at www.HealthRanger.org

(NaturalNews) While Congress has passed an $800+ billion economic stimulus plan, almost everybody in America seems caught up in a common economic fallacy: The idea that Government can “create” jobs through debt spending.

Government spending of debt money does not result in any net creation of jobs at all. It only confiscates wealth from private citizens and forces them to pay for centrally-planned jobs that the real economy usually neither needs nor benefits from.

Consider three people living in an island, running their own tiny economy. Bob, Sarah and Charlie are all farmers who grow their own food, making an honest living by working 8 hours a day to create the food, clothing and shelter they need to survive.

One day, Charlie decides he wants to be the Governor of the island. He tells Bob and Sarah that as Governor, he’ll bring wealth and prosperity to them both. Initially, that sounds good, so Bob and Sarah agree to elect him Governor.

Then it turns out that the Governor is busy governing things on the island (i.e. deciding what everybody else should do), so he has no time to grow his own food. So he initiates a 50% tax on the productivity of Bob and Sarah, confiscating their food, clothing and resources in order to provide those items to himself without actually having to work for them. (This is a key function of government: To confiscate wealth from those who really work and redistribute it to those who pretend to work.)

Now, Bob and Sarah each have a choice: They can either work twice as much in order to pay their tax and still have enough to survive, or they can quit working altogether and hope to get aid from the government.

Sarah decides to work twice as much, so she starts working 16 hours a day, earning enough to pay the taxes to the Governor while still having some remaining food to feed herself and her family. Bob, on the other hand, decides he doesn’t want to work 16 hours a day and would rather do nothing and apply to the Governor for “public assistance.”

So now on this island of three people, where each of the three people used to work to feed themselves, only one person is working (Sarah), and the other two are living off the wealth that’s being confiscated from her efforts.

One day Charlie, the Governor, says he has a solution! He says he will write a series of IOUs to Sarah in exchange for an extra portion of her food and other belongings. Using that currency borrowed from Sarah, he says he will “create a new job” for Bob and “end unemployment on the island.”

Sarah reluctantly agrees and turns over the fruits of her labor to the Governor, who injvents a job for Bob. “Bob,” he says, “We need to build a bridge across this island!” And with the wave of his hand, he puts Bob to work creating a bridge (that nobody needs) while getting paid by wealth that has been confiscated from the only person on the island still working (Sarah).

So now we have ONE person actually doing productive work, a second person living off the confiscated wealth of that person (the Governor), and a third person working a useless job that’s now paid for by the first person as well. This means we have ONE person supporting THREE. And while the island is at “full employment,” two out of three people are actually doing jobs that don’t materially contribute to the wealth and abundance of island’s residents.

And the best part? Guess who gets to work even more to pay back the IOUs that the Governor traded with Sarah? Well Sarah, of course, because those IOUs are public debt paid back by taxpayers.

The problem on this little island is NOT that insufficient money is being spent on an economic stimulus program; the problem is that the island suffers from too many bureaucrats and too much debt spending. The solution? Fire the Governor and the government worker, shrink the size of government and get everybody back to working their own gardens, growing their own food and supporting their own families. Productivity on the island would triple, and people would have to get back to doing honest, productive work instead of living like parasites off the efforts of taxpayers.


Government jobs are created with confiscated wealth

Although greatly simplified, this little scenario demonstrates the ridiculousness of anyone who believes government can “create” jobs. Government creates no net increase in jobs through debt spending. It only confiscates wealth from those who are willing to work and justifies its own wealth confiscation efforts by pretending to offer solutions to the very people it is stealing from.

In some cases, this is justifiably important: You need schoolteachers, bridges, and roads to run a successful society. Cops and firemen, court judges, and international delegates are necessary, too. But remember this: 85% of government money is spent on just three things: War, Disease and Debt. That’s where most of your tax dollars actually go (see corrected figures below). Only about 15% of the money you send Uncle Sam goes to pay for anything useful. Most of it is just wasted away by a government that believes its debt problem can be solved by more debt spending.

Total U.S. Federal Budget for 2008: $2.9 trillion

If you look at where U.S. government spending actually goes, more than 85% is spent on these three things:

1) WAR: Department of Defense ($481.4 billion) + War on Terror ($145.2 billion) + Dept. of Veterans Affairs ($39.4 billion) = $666 billion

2) DISEASE: Medicare ($386 billion) + Medicaid ($209 billion) = $595 billion

3) DEBT: Debt to the people: Social Security ($608 billion), Welfare ($324 billion) and Interest on National Debt ($261 billion) = $1,193 billion

Combined spending on War, Disease and Debt: $2,454 billion ($2.5 trillion), which is 85% of the total expenditures by the federal government.

Source: http://en.wikipedia.org/wiki/United…

Now, Obama wants to write out $800+ billion in new IOUs and use that money to “stimulate” the economy. This is equivalent to confiscating about $5,000 from each and every taxpayer in America today (depending on the number of taxpayers you use for the calculation). It’s the equivalent of saying to Sarah that she needs to turn over all her garden food for the next two months in order to “stimulate” the island economy. And how will that economy be stimulated? By giving that food to people who believe they are entitled to more abundance than Sarah without actually having to work for it. Before long, Bob will be riding in a private limo and flying in a private jet, complaining to the Governor that his industry of bridge building provides 1/3 of the jobs of the entire economy, and he needs more money or the island economy will collapse!

I’m not sure America can survive much more of this debt-spending “stimulus.” The U.S. economy has, in large part, become illusory, propped up by yet more bailout money being spent to create the illusion of meaningful jobs. The idea of saving money has been abandoned in favor of endless spending at both the consumer level and the national level. If this philosophy does not change, the financial outcome will be disastrous.

America needs more savings, not more spending. It needs to get the government off people’s backs, not create even more government to centrally plan yet more “stimulus” programs paid for by confiscating wealth from the fast-shrinking pool of people still working private-sector jobs in America today.

One thing’s for sure: The people in Washington D.C. need to read Economics In One Lesson by Henry Hazlitt: http://www.amazon.com/Economics-One…

About the author: Mike Adams is a natural health researcher and author with a passion for teaching people how to improve their health He has authored and published thousands of articles, interviews, consumers guides, and books on topics like health and the environment, impacting the lives of millions of readers around the world who are experiencing phenomenal health benefits from reading his articles. Adams is an honest, independent journalist and accepts no money or commissions on the third-party products he writes about or the companies he promotes. In 2007, Adams launched EcoLEDs, a maker of super bright LED light bulbs that are 1000% more energy efficient than incandescent lights. He also founded an environmentally-friendly online retailer called BetterLifeGoods.com that uses retail profits to help support consumer advocacy programs. He’s also the founder of a well known HTML email software company whose ‘Email Marketing Director’ software currently runs the NaturalNews subscription database. Adams also serves as the executive director of the Consumer Wellness Center, a non-profit consumer protection group, and pursues hobbies such as Pilates, Capoeira, nature macrophotography and organic gardening. He’s also author of numerous health books published by Truth Publishing and is the creator of several consumer-oriented grassroots campaigns, including the Spam. Don’t Buy It! campaign, and the free downloadable Honest Food Guide. He also created the free reference sites HerbReference.com and HealingFoodReference.com. Adams believes in free speech, free access to nutritional supplements and the ending of corporate control over medicines, genes and seeds. Known as the ‘Health Ranger,’ Adams’ personal health statistics and mission statements are located at www.HealthRanger.org

STRIKE AT THE ROOT OF IT ALL — THE FEDERAL RESERVE

The only hope for America’s current financial crisis is to outlaw the fractional reserve banking system, which is how the Elites [the Bushs, the Clintons, David Rockefeller, Henry Kissinger, Zbigniew Brzezinski, the Rothschild Banking Dynasty, Lazard Brothers, Bank of England, Bank of America, Bear Stearns, Citi, Credit Suisse, Deutsche Bank, Goldman Sachs, JPMorgan, Lehman Brothers, etc ...] gain (the most) power in the first instance. Seize the Federal Reserve Bank and repudiate all the government debt it holds. This is the bank that controls the money supply of the people of the United States via an unconstitutional monopoly.

America must return to a sound money system, which is gold and/or silver, as the Constitution of the U.S. sets forth. With the medium of exchange being metals, the banking/government cabal cannot a) track every exchange, and b) make metals out of thin air, so c) they can no longer depreciate the currency and use this to steal the laborer’s purchasing power from them.

Watch the videos from http://brasschecktv.com and YouTube. Watch the video documentary, America: From Freedom to Fascism, read the Case Against the Fed, by Murray Rothbard, read/watch anything you can get your hands on that Ron Paul has written about “inflation tax” and the Federal Reserve, visit End the Fed, read Creature from Jekyll Island. All of these things will help one understand the ROOT MECHANISM for it all. Destroy that root, and America will be able to survive.

STRIKE AT THE ROOT OF IT ALL — THE FEDERAL RESERVE

The only hope for America’s current financial crisis is to outlaw the fractional reserve banking system, which is how the Elites [the Bushs, the Clintons, David Rockefeller, Henry Kissinger, Zbigniew Brzezinski, the Rothschild Banking Dynasty, Lazard Brothers, Bank of England, Bank of America, Bear Stearns, Citi, Credit Suisse, Deutsche Bank, Goldman Sachs, JPMorgan, Lehman Brothers, etc ...] gain (the most) power in the first instance. Seize the Federal Reserve Bank and repudiate all the government debt it holds. This is the bank that controls the money supply of the people of the United States via an unconstitutional monopoly.

America must return to a sound money system, which is gold and/or silver, as the Constitution of the U.S. sets forth. With the medium of exchange being metals, the banking/government cabal cannot a) track every exchange, and b) make metals out of thin air, so c) they can no longer depreciate the currency and use this to steal the laborer’s purchasing power from them.

Watch the videos from http://brasschecktv.com and YouTube. Watch the video documentary, America: From Freedom to Fascism, read the Case Against the Fed, by Murray Rothbard, read/watch anything you can get your hands on that Ron Paul has written about “inflation tax” and the Federal Reserve, visit End the Fed, read Creature from Jekyll Island. All of these things will help one understand the ROOT MECHANISM for it all. Destroy that root, and America will be able to survive.