In 1910, in a quiet backwater in Georgia at The Jekyl Island Hunt Club, there was a meeting whose simple purpose was the formation of US The Federal Reserve. Those who attended were: Senator Nelson Aldrich (Nelson Rockefeller’s maternal grandfather); A. Piatt Andrew, Economist and Assistant Secretary of the Treasury; Frank Vanderlip, President of the National City Bank of New York; Henry P. Norton, President of Morgan’s First National Bank of New York; Paul Moritz Warburg, a German who was partner in the New York banking house of Kuhn, Loeb Co.; Benjamin Strong, an aid to J. P. Morgan.

The Federal Reserve was incorporated in 1913 and has been creating a completely unnecessary National Debt ever since. In simple terms, the Fed creates money as debt. They create money  and credit out of thin air by nothing more than the ruse of “fractional lending” and a book entry. Whenever the members of the Fed make any loans, that debt money is the US money supply.

THE TEN ORIGINAL MEMBER BANKS OF THE FEDERAL RESERVE

All owned by the Rothschilds

Rothschild Bank of London
Warburg Bank of Hamburg
Rothschild Bank of Berlin
Lehman Brothers of New York
Lazard Brothers of Paris
Kuhn Loeb Bank of New York
Israel Moses Seif Banks of Italy
Goldman, Sachs of New York
Warburg Bank of Amsterdam
Chase Manhattan Bank of New York

Please note that The Rothschild family owns and runs all the above so-called “American Banks”. Therefore you could safely assume that the Rothschild family both runs and controls the whole of the American Banking System. Indeed, Rothschilds is an old European family which has dominated the European banking system for centuries. So not even an American runs the US banking system - a European family cartel manipulates it completely with impunity.

Rothschild

By 1850, the House of Rothschild represented more wealth than all the families of Europe. Shortly after William Patterson formed the Bank of England(est. 1695),  its control passed to Nathan Rothschild and here is how he did it:

Nathan Rothschild was an observer on the day the Duke of Wellington defeated Napoleon at Waterloo, Belgium. He knew that with this information he could make a fortune. He later paid a sailor a big fee to take him across the English Channel in bad weather. The news of Napoleon’s defeat would take a while to hit England. When Nathan arrived in London, he began selling securities and bonds in a panic. The other investors were deceived into believing that Napoleon won the war and was eyeing England so they began to sell their securities too. What they were unaware of is that Rothschild’s agents were buying all the securities that were being sold in panic. In one day, the Rothschild fortune grew by one million pounds. They literally bought control of England for a few cents on the dollar. The same way the Rockefeller’s went into Japan after World War 2 and bought everything 10 cents on the dollar. SONY=Standard Oil New York, a Rockefeller Company.

Nathan Mayer von Rothschild(1840-1915), 1st Baron Rothschild, once boasted:

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

Frederick Morton wrote in his book, The Rothschilds:

“…the wealth of the Rothschilds consists of the bankruptcy of nations.”

But the Fed staunchly maintains that they are a private institution who’s only function is to serve the US government and its citizens. Well of course they do !! So, purely out of interest, lets look at those Financial Institutions that Hank Paulson (ex-CEO of Goldman Sachs) and Ben Bernanke have “saved” in the recent TARP bail-out:

• Morgan Stanley
• Citibank
• Wells Fargo
   
• Goldman Sachs
• Bank of America
• Merrill Lynch
• State Street
• Bank of New York

Every single one of these institutions is either related or has interests and connections to the original Fed forming cartel of 1910, ultimately run by the Rothschilds family. These financial institutions have all been saved as a priority by their cartel buddies within the Fed brotherhood. How many Mainstreet banks (that’s ordinary non-Investment Banks) have been saved or helped by the Fed? I would suggest that the Fed brotherhood’s Wall Street tentacles and influence spreads long, dirty and deep into the very heart of the US political infrastructure - which is the only possible explanation that could adequately explain their inexplicable untouchableness and apparent freedom of agenda.

Now some other facts about the the Fed:

• The Fed, as a private US institution, pays no corporate or any other income tax at all to the US government.
• The Fed is allowed to look after US prices and the money supply - “at their own discretion”.
• The Fed charges interest to the US government for every single Federal Note it produces. This charge, in the form of seignorage, is then passed on to the US citizens as an invisible “inflation tax”.
• The Fed has NEVER been properly audited.
• At their top-level meetings, the Fed keeps no written records or memoranda.
• The Fed, as a private institution, is headed by an American banking cartel which, in turn, is under the complete influence of the European-based Rothschild banking family.

As a result of The Fed’s unstoppable financial activity and due to all the rash debt they have caused within America so consistently over the years, 22 cents in every single US dollar is now foreign owned through all their self-serving and mutifarious debt instruments. If these debt instruments were being used properly, then surely the US National Debt would be coming down wouldn’t it ?  But instead, it becomes painfully evident that the Fed uses these foreign loans, multiplied hugely by the practice of “Fractional Reserve Lending” to further create  credit, leading to unstable and untenable mountains of corporate, personal and financial debt. The US Fiscal Debt is currently running at about $60 trillion now, which is 6 X the reported National Debt and about 15 X GDP. These comparisons become even more ridiculous when compared against the dollar notes in circulation - which is approximately $600 billion. The Fiscal Debt is therefore 100 X more than the dollar notes in circulation !! Is this the measure of a strong economy ? Remember that  the total production of the world economy amounts to $60 trillion alone. David Walker, ex-Comptroller General of the government GAO has said that in order to pay back this US Fiscal Debt, every citizen in America would have to pay its government $480,000 just to break even.

In these current hard economic times, it seems that the forefathers of the  American Constitution had some real vision. In 1826, the second bank’s charter was soon to expire and presidential candidate Andrew Jackson - an avid and honest constitutionalist - campaigned fiercely against a central bank which was owned and operated by the international banking element. Here is Jackson’s opinion of those bankers:

“You are a den of vipers. I intend to wipe you out, and by the Eternal God I will rout you out…If people only understood the rank injustice of the money and banking system, there would be a revolution by morning.”

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References:

The Federal Reserve History and Conspiracy

The Federal Reserve: History of Lies, Thievery, and Deceit

David Walker Interview on CBS(Youtube)

Nobody I know really understands the vastness or the complexity of the Derivatives Market. But the evidence appears to be that the dollar, amidst much reverse spin from the US government corridors, is squirming and hurting bad. But how is this possible with the dollar so strong now ? Read the following explanation from the financialsense.com website, and watch the clock carefully - something nasty is coming.

In the cited article, Kirby wrote: “What folks need to understand is that the global OTC derivatives market, measured in tens or hundreds of Trillions, is virtually all US Dollar denominated. Its SYSTEMIC failure, which is now occurring, requires US Dollar balances to clear (settle) the trades (bets). This has created the paradoxical global demand for US Dollars, the currency of a country that is fundamentally bankrupt. By rationing credit to hedge funds that were naturally levered and ‘long commodities’ (institutions like JP Morgan routinely took the other sides of their customers commodities bets, ruining institutions like natural gas player Amaranth), and propping up the balance sheets of those who were short commodities [such as] the Banks. The Federal Reserve led cabal of Central Bankers have ENGINEERED the collapse in commodities prices while creating the illusion (of a perverse USDollar rally). The engineered collapse of the commodities complex became necessary in the eyes of monetary elites because the rush for tangibles and corresponding repudiation of fiat money was becoming manic, as so CLEARLY evidenced by the emerging shortages of precious metals, gold and silver bullion.” My rejoinder is that the crude oil price, and many commodity prices, have come down right before the election, just like in autumn 2006, a perception we share.

Kirby went on to conclude that “We are CLEARLY going to HYPERINFLATE!!!!” He steadfastly contradicts shallow assertions that deflation will dominate the scene. Anyone observing the money supply acceleration in recent weeks can easily see this, yet deflationists seem unable to observe the human response in desperation. We two have frequent debates between ourselves, whether USTreasury Bond default will occur or else a big Reflation Episode. It is possible both will occur. These exchanges will contribute toward a key section in the upcoming November Hat Trick Letter on the weekend of November 9. A topic raging lately between us has been the failures to deliver USTreasurys. This extraordinary phenomenon highlights the extreme mountain of toxic bond (in)securities spewed worldwide by the corrupted US financial sector, but it also highlights the questionable legitimacy of USTreasury Bonds. One should remember that over $2000 billion in counterfeit USTreasury Bonds was probably buried under the World Trade Tower rubble one dark September day in 2001. The traded volume of USTBonds was recorded to be over $2 trillion above official issuance in USTBonds. So maybe we are seeing a redux of counterfeit issuance of USTBonds in order to satisfy unprecedented demand. By the way, USTreasury management is done, and accounting is done, almost like a money laundering operation, handled by JPMorgan. The rise, burial, and revival of supply are all conducted under the convenient accounting rules permitted by national security agencies.

Could the failures to deliver USTreasurys, as shown in the alarming graphic below, be a precursor to actual default? We will see. Kirby maintains a period of tremendous hyper-inflation is coming. My forecast is for a possible USTreasury default, as conditions grow out of control, and economic disintegration catches the nation by surprise. The collapse of General Motors could trigger a profound change in perception concerning the effective implementation of USGovt and Wall Street bailouts and rescues. Either way, disruptions like never seen before are on the horizon. The settlement failures bring into question the integrity of the USTreasurys as a legitimate market. Their counterfeit from more supply than issuance is well documented, and rings like a loud echo to the naked stock shorting chapter of US financial markets.

 

In a recent and significant article from Reuters entitled “China PM calls on Russia to Fight Crisis Together”, concerning a meeting of government heads between China and Russia in Moscow, Chinese Minister Wen Jiabao explained:

“We need a new [World Financial] system whereby developing nations will have a stronger say,” he added. “We need to diversify the global currency system, to support its stability through the use of different currencies.”

Wen visited Moscow just three weeks before Russian and Chinese leaders are due to take part in an emergency summit in Washington, called to discuss measures to end the current turmoil and to reshape the global financial architecture. Both Russia and China blame the economic crisis squarely “..on the inefficiency of the existing financial infrastructure focused on the U.S. dollar”.

“Reforming the global financial infrastructure … is an important thing and most timely now,” Wen said.

Russian Prime Minsiter Vladimir Putin suggested that switching, at least partially, to the rouble and yuan in mutual trade could help both countries to weather the crisis. He added:

“At the moment the world which is based on the dollar is suffering serious problems … The situation on the global financial markets remains difficult,” he told the forum.

“In such conditions, we need to think about improving the payments system for bilateral trade, including the use of the national currencies,” he said.

“This will help stabilize our national economies, stabilise finance and stabilise capital markets,” he added.

Both China and Russia have met to effectively decide what can be done about the volatile dollar, in preparation for a World Financial Conference in three weeks time in Washington. From their comments it is clear that both Russia and China are tired of the dollar’s unstable and erratic behaviour, and have clear intentions of perhaps decoupling from the dollar and diversifying their reserves into other  currencies. Currently, China holds $1.9 trillion dollars and Russia holds $500 billion in their dollar reserves.

If China and Russia as well as other countries do decide to sell off their reserves and with a consequent lesser demand for the dollar in commodity purchases, then all those greenbacks will come back home to America. The US government will no longer be able to sell its huge Fiscal Debt abroad in such vast amounts anymore - which would be economically catastrophic for the US government, leading to possible inflation or even rampant hyperinflation and bankruptcy.

From a well-known Chinese blogsite called Global Voices, here are some Chinese comments and opinions concerning the dollar situation and the current financial crisis:

“1. Americans dare not put money in the banks.
2. The downfall of financial industry would drive people away from the bonds Wall Street issued, thus its financing capability would be very much undermined…
5. The dollars are going to devalue so that its status as a global currency would come to an end.
6. As the largest and second largest holders of U.S. Treasury bills, Japan and China would be marred due to the slumping dollar value.
7. Major nations in the world might endeavor to displace their crisis by the method of war, and a new world war with the massive use of nuclear weapons is inevitable…..”

“We should know that China could play a positive role in the crisis as the largest holder of dollar reserve. The problem is, since U.S has long been giving troubles to China and trying to impede the reunification of China. Should we pay back the bad with good?”

“Yes, we should help it. But it should be conditional. Though it’s not moral to bargain that way, we don’t have to feel guilty to do so with Americans, since that’s the way they treated us. We can bargain on Taiwan and Tibet issues. What good chips!”

“So as you guys say, America should never fall, and the entire world ought to uphold the power of U.S so that it can spend others’ money to pay and order goods from other countries.”

“China is like working for U.S, a boss who someday says he has run out of money, the company going to collapse. However, China says,”No, you can’t fall, or I will be starving without a job.” Then the boss says,” OK, then please lend me some money, so that I can keep the company, and you can keep working for me.” What a logic!”

The Washington G20 Summit in three weeks time should prove very interesting.

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From the above chart it appears that - after the Carter administration - the Republicans in majority just love to spend and accumulate debt. And the Bush family seem particularly adept at spending freely. While the Democrats in power always worked to pay back the debt. It seems the Republicans follow the Keynesian and Chicago Economic School tenets of Debt and Consumerism is a good thing in a strong economy. However, the Democrats seem to follow Hayek’s principles from the sterner Austrian School of Economics - whose main precept is that a strong, rich country can only be measured from its Savings and Productivity. I’ll leave it up to you to decide which of these economic methods is madness and which is sensible in the current US economy.

In my research for this article, I really found it hard to find believable figures from the US government websites. They just didn’t seem right. Then I stumbled across a website called shadowstats.com and saw the real figures and charts. This site is run by John Williams, who writes most of the articles. Mr Williams is quite simply dedicated to accuracy, he is logical and painfully meticulous in his interpretation of the charts, he even describes the history of biased government reporting of statistics - President by President from Kennedy right up until Bush Jnr. From his article “Government Economic Reports: Things You’ve Suspected but were Afraid to Ask!”,  John Williams says this:

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· During the Kennedy administration, unemployment was redefined with the concept of “discouraged workers” so as to reduce the popularly followed unemployment rate.

· If Lyndon Johnson didn’t like the growth that was going to be reported in the GNP, he sent it back to the Commerce Department, and he kept doing so until Commerce got it right. The Johnson administration also was responsible for gimmicking the accounting that hides most of the federal deficit.

· Richard Nixon had a highly publicized war with the Bureau of Labor Statistics on the unemployment data. Nixon wanted to report the unemployment rate as the lower of the seasonally adjusted or unadjusted number, at any given time, but not specify same to the public. While that approach was unconscionable at the time and never used, basically the same methodology was introduced in 2004 as “state-of-the-art” by the current Bush administration.

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· The Carter administration was caught deliberately understating inflation.

· Systemic changes were introduced during the Reagan administration to boost reported GNP/GDP growth on a regular basis. The wildest manipulations, however, happened at the time of the 1987 liquidity panic. In addition to intervention in the futures markets by the New York Fed to help prop the stock market after the October 19th crash, direct and heavy manipulation of the trade deficit data, under the direction of the Federal Reserve and U.S. Treasury, was used in conjunction with massive currency intervention to help bottom the dollar and to contain the currency panic at year-end 1987.

· The first Bush Administration began efforts at the systematic reduction of the reported rate of CPI inflation, and worked an outside-the-system GDP manipulation aimed at helping with the failed 1992 reelection bid.

shadowstats.com

· As former Labor Secretary Bob Reich explained in his memoirs, the Clinton administration had found in its public polling that if the government inflated economic reporting, enough people would believe it to swing a close election. Accordingly, whatever integrity had survived in the economic reporting system disappeared during the Clinton years. Unemployment was redefined to eliminate five million discouraged workers and to lower the unemployment rate; methodologies were changed to reduce poverty reporting, to reduce reported CPI inflation, to inflate reported GDP growth, among others.

· The current Bush administration has expanded upon the Clinton era initiatives, particularly in setting the stage for the adoption of a new and lower-inflation CPI and in further redefining the GDP and the concept of seasonal adjustment.

As a result of the systemic manipulations, if the GDP methodology of 1980 were applied to today’s data, the second quarter’s annualized inflation-adjusted GDP growth of 3.0% would be roughly three percent lower (effectively netting to zero percent or below). In like manner, current annual CPI inflation is understated by about 2.7% against the pre-Clinton CPI methodology (would be about 5.7%), and the unemployment rate is understated by about seven percent against its original design and what many people would consider to be actual unemployment (would be about 12.5%).

As to the financial results of federal operations, the application of accrual accounting and generally accepted accounting principles to federal operations shows an actual fiscal year 2003 deficit of $3.7 trillion, as reported by the U.S. Treasury, versus the reported cash-basis $374 billion.

When you read conclusive evidence that virtually every US President since the early ’60s has lied to their trusting electorate, what hope is there ? And if you trust Obama or McCain blindly to be honest in reporting dire economic figures correctly, I urge you to think again carefully. The fact is, nothing will change - the US political status quo will continue, undisturbed, uncaring and rotten to the core, and these economic lies will always flow and persist - unchallenged.

References

All charts are borrowed from WhiteHouse.gov or ShadowStats.Com

 

Since the ’90’s Russia has steadily constructed pipelines into Europe, only too happy to supply and pander to the voracious European appetite for oil and gas. Russia has undoubtedly encouraged this dependency. These Soviet oil and gas tentacles now supply all the major European countries with their industrial lifeblood, as Putin and Medvedev patiently wait for their coming advantage.

With America’s stock market still pussing and bleeding all over the world’s financial markets, while the US government’s fiscal debt leaves its economy racked, bare and weak as the precious dollar value goes up and down like a yoyo, supported only by abstract statistical lies from the US government to its own people and the greed of Wall Street, and as US leaders desperately try to avoid their strained dependency on Middle East oil, Putin’s indirect plan continues to move steadily and quietly ahead, completely unhindered by both America or Europe.

In the recent conflict between Georgia and Russia, NATO’s reaction must surely be described as feeble. This weak political and martial response by Europe is quite evidently governed by stark economic fears. Energy is the lifeblood of any nation and Europe’s political mettle has recently been tested hard. Georgia wanted to join NATO, but Angela Merkel - the German Chancellor, vetoed against Georgia joining - amidst weak protests from France, UK and the US. Germany is a big and symbiotic industrial partner for Russia - Germany supplies the technology and organization, and Russia endlessly trickle-feeds Germany her precious oil and gas. If Georgia - on the border with Russia - were to be allowed into the NATO fold, Russia would not be very pleased. And all Putin would have to do is turn off the oil and gas taps into Europe as he has already done against his own rebellious satellites in recent years. Therefore, as perceived by Putin, Merkel and other European states, Georgia is surely a paltry sacrifice to pay as compared to the dire economic need for the persistent trickle of black Russian oil into Europe.

So, as Russia’s oil influence and dependency spreads inevitably like a surreptitious pox across Europe, the political tide will undoubtedly shift and change - the tug of Russia’s political sway too strong to resist, since Europe - for her own economic survival - must soon eventually bow and scrape in deference to Russia’s policies. And so, as Russia’s influence steadily blooms into outright dominance, this subtle takeover will be complete and a new hegemon is born.

In the bloodless aftermath, America will become more isolated and politically friendless - a lone, bewildered animal left to forage and fend for itself. Russia, in partnership with the likes of China, Venezuela and certain other countries in the Mid-East, will persist and continue to hurt America - and through America’s own callous loss of control over her currency - this cabal will be able to silently attack and wrong-foot America economically until the dollar falls big and - because of the American government’s careless laissez-faire attitude towards its own huge fiscal debt - dollar hyperinflation and bankruptcy will arrive to eventually decimate American World Leadership and lay waste the American Way, abruptly to dissolve into a forlorn and forgotten memory.

Of course this could never happen, could it ?

Keep praying.

 

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References:

A Study in Collapse by J R Nyquist

The Monster at the Bottom of the Abyss by J R Nyquist

Inflation, Money Supply, GDP, Unemployment and the Dollar - Alternate Data Series - by John Williams

Menu of Pain by slowsmile

The Ravages of Ignored US Debt by slowsmile