The Collapse of Nations All By The Hand Of Corrupt Bankers

by Robert Chapman
International Forecaster
June 18th, 2011

As far as we can discern the US Treasury thus far has spent and borrowed about $100 billion from the federal pension accounts. Unless there is a vote on the cash debt extension prior to August 2nd, government will probably have borrowed some $250 billion to $300 billion. The Treasury is paying virtually no interest on this debt. Three-month Treasury bills are currently yielding zero percent. Our question is how will the funds be generated to fulfill the Treasury’s obligation to the pension fund? What happens if on August 2nd if legislation is not passed? Does this go on forever? We will keep you apprised on new developments.

The current situation regarding the state of recovery in the US has turned from precarious to dismal and as we predicted a year ago May we will have to be treated to QE3 something no one really wants, but as we said before it is inevitable. The Fed and their controllers, the member bank owners of the Fed, know the present approach doesn’t work and it is only a matter of time, as a result of their policies, when more stimulus will be needed, which in turn leads to more inflation.

Due to the current state of affairs Fed Chairman Bernanke has been making one appearance on TV after another. He gets grilled over and over again and he doesn’t like the public reception at all.

It should be firmly implanted in your mind that your masters in government and those controlling government brazenly and arrogantly believe that they know better what is good for you, than you do. That is why when they speak to you their answers are dripping with condescension – as if to say, how dare you question what we tell you. Fed Chairman, Mr. Bernanke, is a perfect example of this. He, others and his predecessors have created a false economy based upon perpetual debt and upon money and credit being created out of thin air. Today that is accompanied with zero interest rates, a combination that in time can only bring a falling dollar, inflation and a collapsing economy. Mr. Bernanke appears to believe that an increased supply of money has little or no effect on the comparison between money and the prices of goods. He has to be living in a fairy tale land. Thinking such as this can only end up making a bad economic situation worse.

Read Full Article…

The Federal Reserve Cartel: The Freemason BUS & The House of Rothschild

by Dean Henderson
June 8, 2011

Part II

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

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

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

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

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

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

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

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

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

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

Old Hickory, Honest Abe & Camelot

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

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

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

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

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

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

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

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

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

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

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

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

The House of Rothschild

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

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

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

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

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

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

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

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

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

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

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

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

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

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

The Club of the Isles provides capital for George Soros’ Quantum Fund NV – which made a killing in 1998-99 destroying the currencies of Thailand, Indonesia and Russia.  Soros was a major shareholder at George W. Bush’s Harken Energy. Quantum NV operates from the Dutch island of Curacao, in the shadow of recently shuttered Royal Dutch/Shell and Exxon Mobil refineries.  Curacao was recently cited by an OECD Task Force on Money Laundering as a major drug money laundering nation.  The Club of Isles is led by the Rothschilds and includes Queen Elizabeth II and other wealthy European aristocrats and Black Nobility.  Fugitive Swiss financier and Mossad cutout Marc Rich, whose business interests were recently taken over by the Russian mafia Alfa Group, is also part of the Soros network. [24]

Ties to drug money are nothing new to the Rothschilds.  N. M. Rothschild & Sons was at the epicenter of the Bank of Credit & Commerce International (BCCI) scandal, but escaped the limelight when a warehouse full of documents conveniently burned to the ground around the time Rothschild-controlled Bank of England shut BCCI down.

Recent Rothschild endeavors include the backing of Russian oligarch Mikhail Khodorkovsky, control over Blackstone Group (see “…The 911 Short Selling Financial Scam”: globalresearch.ca/index.php?context=va&aid=24687), and the takeover of giant Swiss oil trader Glencore.

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

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

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

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

Next Week: Part III: Knights of the Roundtable & The Illuminati

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

[2] Ibid. p.219

[3] Ibid. p.253

[4] Ibid. p.233

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

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

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

[8] Ibid. p.173

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

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

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

[12] Marrs. p.212

[13] Idid. p.139

[14] Ibid p.141

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

[16] Ibid. p.181

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

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

[19] Marrs. p.215

[20] Ibid

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

[22] Marrs. p.63

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

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

[25] Marrs. p.86

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

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

www.deanhenderson.wordpress.com

China Warns on holding U.S. Assets

Reuters
June 7, 2011

The dollar fell to a one-month low against a basket of currencies on Tuesday and a record low against the Swiss franc after a Chinese official said the greenback would continue to weaken versus other major currencies.

The head of the international payment department at the Chinese forex regulator also warned about the risks of excessive holdings of U.S. dollars.

The dollar index [.DXY  73.59    -0.36  (-0.49%)   ]fell to a low of 73.601, the lowest since May 5, while the greenback fell to 0.8328 Swiss francs on trading platform EBS a record low.

“China has been growing its share of U.S. securities quite aggressively in the past, and the threat that they will be  selling these holdings has always been there,” said Adam Myers, senior forex strategist at Credit Agricole.

“But this is not a credible threat as a sell-off will lead  to a steepening of the U.S. yield curve which will hurt the U.S. and the Chinese, who are dependent on the U.S. economy. But I do agree that the dollar is headed lower in the long term.”

The euro rose to its highest in a month, climbing to $1.4666 on EBS, up nearly 0.6 percent on the day. Traders cited option barriers at $1.47 which could check gains in the near
term.

The common currency had got a boost in early European trade after a senior government official said the Greek government expects parliament to vote on its medium-term austerity plan by the end of June, a move which will fulfil a condition to receive new international funding.

The euro has gained more than 4 percent from its May 23 trough. The immediate target for the common currency is $1.4732, a 78.6 percent retracement of its May 4 to May 23 fall.

A break of that level should take it back to the May 4 high around $1.4939, though many traders think the currency will need a signal from European Central Bank chief Jean-Claude Trichet this week that the institution is ready to raise rates in July.

Earlier in the session, the euro slipped after Eurogroup chairman Jean-Claude Juncker said the common currency was overvalued.

“Euro is still clear of crisis levels, but flows are very choppy and investors are awaiting a solution from the IMF, EU, ECB, the private bond-holders and Greece,” said Lena Komileva,
head of G-10 currency strategy at Brown Brothers Harriman.

“It is more of a momentum lift for the euro than anything fundamental.”

With market views mixed on the euro, implied volatilities on euro/dollar options have eased as few market players see the need to hedge against sharp moves in the pair. One-month
euro/dollar volatility slipped to around 11.40 percent, near its lowest in a month.

Bernanke in Focus

While the euro hit one-month highs, worries about a faltering U.S. economy have boosted market expectations for the Federal Reserve to keep interest rates lower for longer, making
the dollar an attractive funding currency.

A fall in U.S. shares to 2-1/2 month troughs is fanning expectations that the Fed is eager to keep rates low for a protracted period, with some market players even talking about
the possibility of QE3 after the current asset buying programme, dubbed QE2, is completed at the end of this month.

Fed Chairman Ben Bernanke will be speaking on the U.S. economic outlook at 3:45 p.m. in Atlanta (1945 GMT) on Tuesday, his first appearance after Friday’s U.S. job data that cemented the view that the U.S. economy has hit a soft patch.

Against the yen, the dollar crept up to 80.22 yen, after a brief dip below 80.00 on Monday for the first time since May 5, helped by bids from Japanese importers.

Meanwhile, the Australian dollar fell 0.2 percent to $1.0687, moving further away from Friday’s four-week high of $1.0775 after the Reserve Bank of Australia kept rates on hold
and gave no hints of tightening in the immediate future.

Its statement surprised some market players by omitting a warning that policy would likely have to tighten in coming months to contain inflation, leading markets to trim the risk of
a move in July or August.

New U.S. Data Reveals Billions in Foreign Bailouts

Among bailed-out banks are the Central Bank of Libya, the Bank of China, Societe Generale and JP Morgan

By Christopher J. Petherick
April 12, 2011

Texas Republican Rep. Ron Paul announced on April 4, as head of the powerful House Domestic Monetary Policy Subcommittee, he will be initiating congressional hearings into reports the Federal Reserve made hundreds of billions of dollars worth of sweetheart loans to foreign banks.

Fed officials had tried desperately to keep the details of these transactions under wraps by repeatedly appealing a lawsuit that was brought by two reporters working for the New York-based Bloomberg News. They argued that, if the details of such deals are released, the public would lose confidence in the banking system.

In late March, however, the Supreme Court upheld previous rulings by lower courts that the Fed must comply with the information requests. So, the Fed dumped hundreds of pages of records onto the public. Over the course of the April Fools Day weekend, AFP’s editors were able to examine a portion of the Fed’s documents, only to learn that the joke has always been on the American people.

In 2008, banks around the world were struggling to stay solvent as their risky trading in complex derivatives weighed heavily on their balance sheets. As a result, the Fed, at varying times, made hundreds of billions of dollars worth of emergency loans at its “discount window.”

Such transactions are usually only reserved for lending of last resort to institutions that could not get funding from anywhere else, such as by floating more stock or selling bonds.

Some of the largest banks, such as Wachovia and Morgan Stanley, repeatedly hit up the Fed for short-term loans worth billions of dollars. From Sept. 18, 2008 to Sept. 24, 2008, Washington Mutual borrowed $2 billion every day until its collapse on Sept. 25, 2008. It was eventually bought out by JPMorgan in a now-infamous fire sale.

But what shocked Fed watchers the most was the volume of transactions the private central bank conducted with foreign banks. In thousands of “emergency loans,” foreign banks repeatedly came to the Fed asking for U.S. dollars at near-zero percent interest rates.

At varying times, some of the top borrowers included Brussels-based Dexia Bank ($33.5 billion), Dublin-based Depfa Bank ($24.5 billion), Parisbased Societe Generale ($5 billion), Tokyo-based Norinchukin ($6 billion), Bank of China ($198 million) and two Deutsche Bank AG divisions ($1 billion each).

One of the most controversial was the Arab Banking Corp., which borrowed more than $35 billion. Arab Banking Corp. is 35 percent owned by the Central Bank of Libya. Regardless of what readers may think of Libya, the Federal Reserve made an estimated 73 loans to the Central Bank of Libya—the national bank of a country the U.S. military is currently bombing.

In an official statement on the Fed’s data dump, Rep. Paul said: “These lending activities provided no benefit to American taxpayers, the American economy or even directly to American banks. . . . It is becoming more and more obvious that the Fed operates for the benefit of a few privileged banks, banks that never suffer for bad decisions they make. Quite the opposite—as we have seen since October 2008, under our current monetary system politically connected banks are paid to make bad decisions.”

Reaping What Bretton Woods Has Sown

The International Forecaster
April 2, 2011

The seeds of today’s monetary problems were laid at Bretton Woods, NH in 1944, as a combination of socialists, communists and fascists laid the groundwork for the IMF, the World Bank and the eventual elimination of gold from the monetary world. The Federal Reserve’s role was to bring that about from behind the scenes.

In the intervening years in order to move toward those goals the banking system run by the privately run Federal Reserve, allowed banks, some of which were run by the owners of the Fed, such as JPMorgan Chase, Goldman Sachs and Citigroup, were allowed to run rough shod over the system, always knowing they would be bailed out by the public. These banks have had and continue to have a license to steal under the illegal Federal Reserve Act. Over and over again these banks, Wall Street, insurance companies and transnational corporations have been bailed out of their speculations under the aegis of too big to fail. The excuse has always been that it must be done to protect the public. These entities got to keep the gains and the public got to share in the losses. The public and 95% of those working on Wall Street and banking didn’t have a clue to what was really going on. The Fed and other major central banks were not only playing this Fed game domestically, but internationally as well. Over those years the Fed had been designated the lender of last resort. We saw them in action over the last 3-1/2 years during what was termed the credit crisis. The Fed’s job was to bail out not only the US banking system rent asunder by bank speculation in the mortgage market, but to also bail out the buyers of such mortgages, known as MBS and CDOs, sold to British and European banks and other financial entities, which had purchased 60% of the toxic waste. If you notice not one of these lenders or buyers ever filed a civil or criminal suit against these purveyors of what has become to be known as toxic waste. We can only speculate, but we believe the dumping ground for this mortgage garbage was preset and that some of the buyers if not all were guaranteed by the Fed that if problems arose they would be bailed out and one way or another made whole. The Fed attempted to hide what they were doing and a lawsuit has finally forced them to divulge, who received funds created by the Fed, some $13.8 trillion, why and what collateral was accepted for such loans and have such loans been repaid. Another program called TARP was set up by the Treasury to bail out Wall Street, banking and transnational conglomerates all involved in this tight little circle of anointed corporations. This bailout program was accomplished by Treasury Secretary Paulson. He told Congress if the funds were not forthcoming for the insiders to bail themselves out via speculation based on inside information, then he would see to it that the financial system was brought down and destroyed. The high-handed ruse or extortion worked and these miscreants received their funds from the public Treasury, as well as from the Fed.

Gold backing for the US dollar was part of the result of the conference at the Mount Washington Hotel in Bretton Woods in that July of 1944. We have to interject here that in 1946 or 1947 I climbed Mt. Washington and once I reached the hotel it started snowing. Yes, snowing in August. The group of us from the camp quickly raced back down through the forest to better climes, which the snow failed to reach. Thus, 2 or 3 years after that historic meeting, I briefly visited that hotel, of course, not knowing what had taken place there.

 

George Soros, one of the world's strongest pushers for Global Financial and Economic consolidation.

This UN Monetary and Financial Conference, which included the International Bank for Reconstruction & Development, which became the World Bank, which was to make loans to the rubble that was to be Europe in 1945, and to which those economies, promote monetary cooperation and fix exchange rates, and eventually to eliminate the use of gold, as the backing and basis for international currency exchange, replacing gold with a fiat paper standard controlled by the Federal Reserve. The discipline of gold was to eventually be phased out of the system, so that the fed could create money out of thin air. This would be a perpetual tax on Americans as their currency dropped in value versus gold over the years. Currencies would no longer be exchanged in terms of their gold value. This was called a gold exchange standard. The public could not exchange US notes or Federal Reserve notes for gold, but nations could. The value of currencies versus one another, all of which were backed by gold was set by supply and demand. If a nation created too much currency the value of their currency would fall versus gold and other currencies. This method of monetary policy had previously been set into law by the passage of the Federal Reserve Act. The concept was to eventually have a world bank that would create a fiat currency for all nations that would supersede all other currencies. That, of course, is still underway today as elitists strive for a one-world currency and a new-world order. These concepts were promulgated and put in place by well-known Fabian socialist John Maynard Keynes, who as we reflect back was the author of an economic system that was corporatists fascist and the then Treasury Secretary, Harry Dexter White, who was a communist. It took 27 years, and on August 15, 1971, President Richard Nixon removed the US dollar from the gold exchange standard. That is how the fiat dollar was generally planned and that is why we have non-gold Federal Reserve notes today, instead of a gold backed currency.

 

The elitists’ corporatist fascist model is not working very well. The Fed, the Bank of England and Western banks have serious problems and throwing money at the problems is not working. Of course, do they want the solution to work? This depression they have deliberately created is not working the way they envisioned it would. In fact they are having trouble keeping it under control. We have just seen what is called a “black Swan” event. An earthquake, an untoward event, which ostensibly came from out of the blue. We’ll surmise that until we have empirical evidence that man did not create it. These are the kind of unplanned events that throw the elitist plans off kilter. It throws the direction of neo-liberal capitalism in several different directions. This is the system so prevalent in Europe, where profits are privatized and losses are socialized and become a debt that has to be paid by the people. This system, which we now have in America, keeps Wall Street and banking in power. This is accomplished by bailouts when the anointed corporations get themselves in trouble as we see in America today and in Europe as well. The state in our case by the privately owned Federal Reserve losses are monetized and appear in part in the form of higher inflation. It also comes in the form of public debt that has to be repaid by the taxpayer. Eventually the debt consumes the host.

As a result it is only a matter of time before the system unravels. The fractional banking system does not work and never has worked. The players who run the system know that. History is replete with instances of failure, which are well known to elitists. The collapse of the Lombard System in 1348, the year of the plague, and the collapse of the Hanseatic League in the early 1600s, are but two of scores of failures, most of which were deliberately planned. Fractional banking for those of you who do not know what it is, takes place when a lender lends more money than he can collateralize. The rule of thumb over the centuries has been to lend no more than eight times assets. Today that number is 40 times as assets. That is why most major western banks are broke. Any major untoward event could presently collapse the current system. In addition, some 10% of the basic assets of these banks are worthless. These banks are still in serious trouble in spite of receiving trillions of dollars in bailout funds of one kind or another. What happens when interest rates rise, which they must? The banks will be in trouble, as inflation rages. If that wasn’t bad enough contagion could also affect the banking system. That is when one bank borrows from another and then cannot get their funds back. That happened 3-1/2 years ago and the Fed stepped in and secretly guaranteed deposits. In this process of saving Wall Street and banking the public is put at enormous risk, which is a pattern used over and over again over the centuries.

These events naturally lead us to the dollar, which for months has had little sustainable strength either fundamental or technical. The run to 89 on the USDX ended in failure, and the recent strength at and near 75 was tepid at best. The recent intervention by the G-7 to weaken the yen, which has moved from 76 to 83, was really a backhanded attempt to stage a dollar rally, especially when you consider the absorption of Japanese Treasury sales, which is really what the exercise was all about. Needless to say, the NYC elitists needed the Japanese problem like they needed a hole in the head. The baggage the US dollar has is overwhelming. The government is being 70% to 80% financed by the Fed, which creates money and credit out of thin air. The federal deficit for the fiscal year will be $1.7 trillion. The US has two occupations and two ongoing wars costing billions of dollars a month. Municipalities and states are in dire financial straights and the economy would collapse without quantitative easing and stimulus. A rather sad state of affairs. Incidentally, we called the recent bottom on the dollar, but more importantly, we called the top at 89. Dollar and Treasury bond weakness will be exacerbated by the Middle East and North African revolutions and the ultimate result will be the demise of the petro dollar, which has always been the underlying strength to the dollar. The US, UK and France guaranteed safety for the oil producers, they denominated oil in US dollars, and they deposited their profits in NYC, London and Paris for management. The policy may well be at an end. If so that will be the end of regional purchases of US T-bonds. Thus, the loss of Chinese, Japanese and Gulf purchases will cancel out 70% of US Treasury purchases. These events could very well lead to the collapse of the Treasury bond market essentially leaving only the Fed as a buyer. As we predicted months ago the second half of 2011 will bring an implosion of US Federal debt, municipal and state debt, British debt and a collapse in EU debt and the beginning of the end for the euro. Along with 14% inflation gold and silver will rocket upwards.

The latest insult to American consciousness is a proposed cut in the budget deficit of $33 billion. That isn’t even cosmetic. In a budget with a $1.7 trillion deficit that isn’t even chump change. Can you imagine what the rest of the world is thinking? Try to sell treasuries under those conditions? The House is totally out of touch with reality. It takes its orders from Wall Street and banking. That has never been more obvious.

Hundreds of municipalities will fail in 2011 as well as some states. Austerity will continue for the average American citizen. That means GDP will fall from 70% by consumers to 68.5% with more bad news to come next year. All of these events have already, as displayed recently, begun to end the safe-haven status of the US dollar. Not only will the dollar be under pressure, but also so will the sale of Treasuries. It is possible the dollar could go to 65 on the USDX and the Treasury market could collapse. The plight of the dollar has not gone unnoticed. In 2001, the dollar’s share of official global foreign-reserves was 71.5%. At the end of 2010 it was 61.3%. Those moves do not instill confidence in the dollar.

We have contended for a year that a major meeting will be held with all countries attending to revalue and devalue currencies each against one another, there would be a multilateral default of some kind and a new devalued international world reserve currency backed by gold. That new currency could be the dollar. The status of old debt would be clear. How domestic debt would be handled remains to be seen. The collateralized gold backing would be today $6,000 and silver perhaps $300. The problem is that is now. The figures a year or two from now could be $8,000 and $400, who knows? All we know is the trend is clear.

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