Friday, December
14th, 2012 |
The
Federal Reserve Cartel: Part IV: A Financial Parasite
(Excerpted
from Chapter 19: Big Oil & Their Bankers…Part four of a five-part
series)
United World Federalists founder James Warburg’s father was Paul
Warburg, who financed Hitler with help from Brown Brothers Harriman partner
Prescott Bush. [1]
Colonel
Ely Garrison was a close friend of both President Teddy Roosevelt and President
Woodrow Wilson. Garrison wrote in Roosevelt,
Wilson and the Federal Reserve, “Paul Warburg was the man who got
the Federal Reserve Act together after the Aldrich Plan aroused such nationwide
resentment and opposition. The mastermind of both plans was Baron Alfred
Rothschild of London.”
The
Aldrich Plan was hatched at a secret 1910 meeting at JP Morgan’s private resort
on Jekyll Island, SC, between Rockefeller lieutenant Nelson Aldrich and Paul
Warburg of the German Warburg banking dynasty. Aldrich, a New York congressman,
later married into the Rockefeller family. His son Winthrop Aldrich
chaired Chase Manhattan Bank. While the bankers met, Colonel Edward
House, another Rockefeller stooge and close confidant of President Woodrow
Wilson, was busy convincing Wilson of the importance of a private central bank
and the introduction of a national income tax. A member of House’s staff was
British MI6 Permindex insider General Julius Klein. [2]
Wilson
didn’t need much convincing, since he was beholden to copper magnate Cleveland
Dodge, whose namesake Phelps Dodge became one of the biggest mining companies
in the world. Dodge bankrolled Wilson’s political career. Wilson even
wrote his inaugural speech on Dodge’s yacht. [3]
Wilson
was a classmate of both Dodge and Cyrus McCormick at Princeton. Both were
directors at Rockefeller’s National City Bank (now Citigroup). Wilson’s
main focus was on overcoming public distrust of the bankers, which New York
City Mayor John Hylan echoed in 1911 when he argued, “The real menace to our
republic is the invisible government which, like a giant octopus, sprawls its
slimy length over our city, state and nation. At the head is a small
group of banking houses, generally referred to as the international bankers”.
[4]
But
the Eight Families prevailed. In 1913 the Federal Reserve Bank was born,
with Paul Warburg its first Governor. Four years later the US entered
World War I, after a secret society known as the Black Hand assassinated
Archduke Ferdinand and his Hapsburg wife. The Archduke’s friend Count
Czerin later said, “A year before the war he informed me that the Masons had
resolved upon his death.” [5]
That
same year, Bolsheviks overthrew the Hohehzollern monarchy in Russia with help
from Max Warburg and Jacob Schiff, while the Balfour Declaration leading to the
creation of Israel was penned to Zionist Second Lord Rothschild.
In the 1920’s Baron Edmund de Rothschild founded the Palestine
Economics Commission, while Kuhn Loeb’s Manhattan offices helped Rothschild form a network
to smuggle weapons to Zionist death squads bent on seizing Palestinian
lands. General Julius Klein oversaw the operation and headed the US Army
Counterintelligence Corps, which later produced Henry Kissinger. Klein
diverted Marshall Plan aid to Europe to Zionist terror cells in Palestine after
WWII, channeling the funds through the Sonneborn Institute, which was
controlled by Baltimore chemical magnate Rudolph Sonneborn. His wife
Dorothy Schiff is related to the Warburgs. [6]
“The real menace to our republic is the invisible
government which, like a giant octopus, sprawls its slimy length over our city,
state and nation. At the head is a small group of banking houses, generally
referred to as the international bankers”. John Hylan, New York City Mayor,
1911
The
Kuhn Loebs came to Manhattan with the Warburgs. At the same time the Bronfmans
came to Canada as part of the Moses Montefiore Jewish Colonization
Committee. The Montefiores have carried out the dirty work of Genoese
nobility since the 13th Century. The di Spadaforas served that function
for the Italian House of Savoy, which was bankrolled by the Israel Moses Seif
family for which Israel is named. Lord Harold Sebag Montefiore is current
head of the Jerusalem Foundation, the Zionist wing of the Knights of St. John’s
Jerusalem. The Bronfmans (the name means “liquor man” in Yiddish) tied up
with Arnold Rothstein, a product of the Rothschild’s dry goods empire, to found
organized crime in New York City. Rothstein was succeeded by Lucky
Luciano, Meyer Lansky, Robert Vesco and Santos Trafficante. The Bronfmans
are intermarried with the Rothschilds, Loebs and Lamberts. [7]
The
year 1917 also saw the 16th Amendment added to the US Constitution, levying a
national income tax, though it was ratified by only two of the required 36
states. The IRS is a private corporation registered in Delaware.
[8] Four years earlier the Rockefeller Foundation was launched, to shield
family wealth from the new income tax provisions, while steering public opinion
through social engineering. One of its tentacles was the General
Education Board.
In
Occasional Letter #1, the Board states, “In our dreams we have limitless
resources and the people yield themselves with perfect docility to our molding
hands. The present education conventions fade from their minds and, unhampered
by tradition, we will work our own good will upon a grateful and responsive
rural folk. We shall try not to make these people or any of their
children into philosophers or men of learning or men of science…of whom we have
ample supply.” [9]
Though most Americans think of the Federal Reserve as a government
institution, it is privately held by the Eight Families. The Secret Service is
employed, not by the Executive Branch, but by the Federal Reserve. [10]
An exchange between Sen. Edward Kennedy (D-MA) and Fed
Chairman Paul Volcker at Senate hearings in 1982 is instructive. Kennedy
must have thought of his older brother John when he told Volcker that if he
were before the committee as a member of US Treasury things would be much
different. Volcker, puffing on a cigar, responded cavalierly, “That’s
probably true. But I believe it was intentionally designed this way”.
[11] Rep. Lee Hamilton (D-IN) put it to Volcker that, “People realize
that what that board of yours does has a very profound impact on their
pocketbooks, and yet it is a group of people basically inaccessible to them and
unaccountable to them.”
President
Wilson spoke of, “a power so organized, so complete, so pervasive, that they
had better not speak above their breaths when they speak in condemnation of
it.” Rep. Charles Lindberg (D-NY) was more blunt, railing against Wilson’s
Federal Reserve Act, which had cleverly been dubbed the “People’s Bill”.
Lindberg declared that the Act would, “…establish the most gigantic trust on
earth…When the president signs this act, the invisible government by the money
power will be legitimized. The law will create inflation whenever the
trusts want inflation. From now on, depressions will be scientifically
created. The invisible government by the money power, proven to exist by
the Money Trust Investigation, will be legalized. The whole central bank
concept was engineered by the very group it was supposed to strip of power”.
[12]
The
Fed is made up of most every bank in the US, but the New York Federal Reserve
Bank controls the Fed by virtue of its enormous capital resources. The
true center of power within the Fed is the Federal Open Market Committee
(FOMC), on which only the NY Fed President holds a permanent voting seat.
The FOMC issues directives on monetary policy which are implemented from the
8th Floor of the NY Fed, a fortress modeled after the Bank of England. [13]
In
the fifth sub-basement of the 14-story stone hulk lie 10,300 tons of mostly
non-US gold, 1/3 of the world’s gold reserves and by far the largest gold stock
in the world. [14]
“When the president signs this act [the Federal Reserve
Act], the invisible government by the money power will be legitimized.” Rep. Charles Lindberg (D-NY)
The
world of money is increasingly computerized. With the introduction by the
Eight Families of complicated financial instruments like derivatives, options,
puts and futures; the volume of inter-bank transactions took a quantum
leap. To handle this the fed built a superhighway eerily known as CHIPS
(Clearing Interbank Payment System), which is based in New York and modeled after
Morgan’s Belgium-based Euro-Clear – also known as The Beast.
When
the Fed was created five New York banks – Citibank, Chase, Chemical Bank,
Manufacturers Hanover and Bankers Trust – held a 43% stake in the New York
Fed. By 1983 these same five banks owned 53% of the NY Fed. By year
2000, the newly merged Citigroup, JP Morgan Chase and Deutsche Bank combines
owned even bigger chunks, as did the European faction of the Eight Families.
Collectively they own majority stock in every Fortune 500 corporation and do
the bulk of stock and bond trading. In 1955 the above five banks
accounted for 15% of all stock trades. By 1985 they were involved in 85%
of all stock transactions. [15]
Still more powerful are the investment banks which bear the names of
many of the Eight Families. In 1982, while Morgan bankers presided over negotiations
between Britain and Argentina after the Falklands War, President Reagan pushed
through SEC Rule 415, which helped consolidate securities underwriting in the
hands of six large investment houses owned by the Eight Families: Goldman
Sachs, Merrill Lynch, Morgan Stanley, Salomon Brothers, First Boston and Lehman
Brothers. These banks further consolidated their power via the merger mania of 1980s and
1990s.
American
Express swallowed up both Lehman Brothers-Kuhn Loeb, which had merged in 1977,
and Shearson Lehman-Rhoades. The Israel Moses Seif’s Banca de la Svizzera Italiana bought a
7% stake in Lehman Brothers. [16] Salomon Brothers nabbed Philbro from
the South African Oppenheimer family, then bought Smith Barney. All three then
became part of Traveler’s Group, headed by Sandy Weill of the David-Weill
family, which controls Lazard Freres through senior partner Michel
David-Weill. Citibank then bought Travelers to form Citigroup. S.G.
Warburg, of which Oppenheimer’s Chartered Consolidated owns a 9% stake, joined
the old money Banque Paribas,
which merged into Merrill Lynch in 1984. Union Bank of Switzerland
acquired Paine Webber, while Morgan Stanley ate up Dean Witter and purchased
Discover credit card operations from Sears.
Kuhn
Loeb-controlled First Boston merged with Credit Suisse, which had already
absorbed White-Weld, to become CS First Boston – the major player in the dirty
London Eurobond market. Merrill Lynch – merged into Bank of America in
2008 – is the major player on the US side of this trade. Swiss Banking
Corporation merged with London’s biggest investment house S.G. Warburg to
create SBC Warburg, while Warburg became more intertwined with Merrill Lynch
through their 1998 Mercury Assets tie up. The Warburg’s formed another
venture with Union Bank of Switzerland, creating powerhouse UBS Warburg.
Deutsche Bank bought Banker’s Trust and Alex Brown to briefly become the
world’s largest bank with $882 billion in assets. With repeal of
Glass-Steagal, the line between commercial, investment and private banking
disappeared.
This
handful of investment banks exerts an enormous amount of control over the
global economy. Their activities include advising Third World debt
negotiations, handling mergers and breakups, creating companies to fill a
perceived economic void through the launching of initial public stock offerings
(IPOs), underwriting all stocks, underwriting all corporate and government bond
issuance, and pulling the bandwagon down the road of privatization and
globalization of the world economy.
A
recent president of the World Bank was James Wolfensohn of Salomon Smith
Barney. Merrill Lynch had $435 billion in assets in 1994, before the
merger frenzy had really even gotten under way. The biggest commercial
bank at the time, Citibank, could claim only $249 billion in assets.
In 1991 Merrill Lynch handled 26.8% of all global bank mergers. Morgan Stanley did 16.8%,
Goldman Sachs 16.3%, Lehman Brothers 16.1% and Credit Suisse First Boston
14.5%. Morgan Stanley did $60 billion in corporate mergers in 1989.
By 2007, reflecting the repeal of Glass-Steagel, the top ten NMA advisers in
order were: Goldman Sachs, Morgan Stanley, Citigroup, JP Morgan Chase, Lehman
Brothers, Merrill Lynch, UBS Warburg, Credit Suisse, Deutsche Bank and Lazard.
In the IPO stock underwriting field for 1991 the top four were Goldman Sachs,
Merrill Lynch, Morgan Stanley and CS First Boston. In the arena of global
privatization for years 1985-1995, Goldman Sachs led the way doing $13.3
billion worth of deals. UBS Warburg did $8.2 billion, BNP Paribas $6.8 billion, CS First Boston
$4.9 billion and Paribas-owner
Merrill Lynch $4.4 billion. [17]
In
2006 BNP Paribas bought the
notorious Banca Nacionale de Lavoro
(BNL), which led the charge in arming Saddam Hussein. According to Global Finance, it is now the world’s
largest bank with nearly $3 trillion in assets.
The
leading US debt underwriters for the first nine months of 1995 bore the same
familiar names. Merrill Lynch underwrote $74.2 billion in the US debt
markets, or 15.3% of the total. Lehman Brothers handled $52.5 billion,
Morgan Stanley $47.4 billion, Salomon Smith Barney $45.6 billion. CS
First Boston, Chase Manhattan and Goldman Sachs rounded out the top
seven. The top three municipal debt underwriters that year were Goldman
Sachs, Merrill Lynch and UBS Paine Webber. In the euro-market the top
four underwriters in 1995 were UBS Warburg, Merrill Lynch, Deutsche Bank and
Goldman Sachs. [18] Deutsche Bank’s Morgan Grenfell branch engineered the
corporate takeover binge in Europe.
The
dominant players in the oil futures markets at both the New York Mercantile
Exchange and the London Petroleum Exchange are Morgan Stanley Dean Witter,
Goldman Sachs (through its J. Aron & Company subsidiary), Citigroup
(through its Philbro unit) and Deutsche Bank (through its Banker’s Trust
acquisition). In 2002 Enron Online was auctioned off by a bankruptcy
court to UBS Warburg for $0. UBS was to share monopoly Enron Online
profits with Lehman Brothers after the first two years of the deal. [19] With
Lehman’s 2008 demise, its new owner Barclays will get their cut.
“In our dreams we have limitless resources and the people
yield themselves with perfect docility to our molding hands.” Occasional Letter #1, General
Education Board, Rockefeller Foundation, 1913
Following
the Lehman Brothers fiasco and the ensuing financial meltdown of 2008, the Four
Horsemen of Banking got even bigger. For pennies on the dollar, JP Morgan Chase
was handed Bear Stearns and Washington Mutual. Bank of America commandeered
Merrill Lynch and Countrywide. And Wells Fargo seized control over the reeling
#5 US bank Wachovia. Barclays got a sweetheart deal for the remains of Lehman
Brothers.
Former
House Banking Committee Chairman Wright Patman (D-TX), declared of Federal
Reserve Eight Families owners, “The United States today has in effect two
governments. We are the duly constituted government. Then we have
an independent, uncontrolled and uncoordinated government in the Federal
Reserve System, operating the money powers which are reserved to Congress by
the Constitution”. [20]
Since
the creation of the Federal Reserve, US debt (mostly owed to the Eight
Families) has skyrocketed from $1 billion to nearly $14 trillion today.
This far surpasses the total of all Third World country debt combined, debt
which is mostly owed to these same Eight Families, who own most all the world’s
central banks.
As
Sen. Barry Goldwater (R-AZ) pointed out, “International bankers make money by
extending credit to governments. The greater the debt of the political
state, the larger the interest returned to lenders. The national banks of
Europe are (also) owned and controlled by private interests. We recognize
in a hazy sort of way that the Rothschilds and the Warburgs of Europe and the
houses of JP Morgan, Kuhn Loeb & Co., Schiff, Lehman and Rockefeller
possess and control vast wealth. How they acquire this vast financial
power and employ it is a mystery to most of us.” [21]
Footnotes:
- Behold
a Pale Horse. William
Cooper. Light Technology Press. Sedona, AZ. 1991. p.81
- Dope
Inc.: The Book that Drove Kissinger Crazy.
The Editors of Executive
Intelligence Review. Washington,
DC. 1992.
- Democracy
for the Few. Michael
Parenti. St. Martin’s Press. New York. 1977. p.67
- Descent
into Slavery. Des
Griffin. Emissary Publications. Pasadena 1991
- The
Robot’s Rebellion: The Story of
the Spiritual Renaissance.
David Icke. Gateway Books. Bath, UK. 1994. p.158
- The
Editors of Executive
Intelligence Review. p.504
- Ibid
- Ibid
- Ibid.
p.77
- “Secrets
of the Federal Reserve”. Discovery Channel. January 2002
- The
Confidence Game: How Un-Elected Central Bankers are Governing the Changed
World Economy. Steven
Solomon. Simon & Schuster. New York. 1995. p.26
- Icke.
p.178
- Solomon.
p.63
- Ibid.
p.27
- The
Corporate Reapers: The Book of Agribusiness.A.V.
Krebs. Essential Books. Washington, DC. 1992. p.166
- The
Editors of Executive
Intelligence Review. p.79
- “Playing
the Middle”. Anita Raghavan and Bridget O’Brian. Wall
Street Journal. 10-2-95
- Securities
Data Corporation. 1995
- CNN
Headline News. 1-11-02
- The
Rockefeller File. Gary
Allen. ’76 Press. Seal Beach, CA. 1977. p.156
- 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.77
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