As I write this on 16th September 2008, yesterday Lehman brothers went bankrupt and sent the Dow Jones industrial average share index down 500 points or 4%. This dear reader is just the tip of the iceberg.
So, this is it folks. Say goodbye to your pension and your share portfolio because in the coming weeks we are about to experience the biggest financial collapse ever to grace the world as we know it. There’s going to be big time losers big time and riots in banks. However, everything is not so gloomy as there will be great beneficiaries of this great unwinding of power and it will be a positive shift for the benefit of a few. But it’s not you.
In order to explain this in great detail, we need to go back into history and examine how and why the foundation for this was laid, who orchestrated it, just why are we in this situation we see ourselves in now today and what it to come in the weeks months and years ahead.
The financial system as we know it today goes way back Mayer Amschel Rothschild (1744–1812). Born in a ghetto of Frankfurt-am-Main He developed a finance house and spread his empire by installing each of his five sons in European cities to conduct business. An essential part of Mayer Rothschild’s strategy for future success was to keep control of their businesses in family hands, allowing them to maintain full discretion about the size of their wealth and their business achievements. Mayer Rothschild successfully kept the fortune in the family with carefully arranged marriages between closely related family members. This dynasty is still in existence today in the form of NM Rothschild investment managers and the bank of international settlements in Switzerland. These guys today are still a banking giant, friends of the Queen and well appointed and respected in higher circles. In other words, they are extremely powerful. It has been said that these people run Europe through their great influence in finance, science, politics and religion. For this article however we will focus on the financial aspect.
When America was pioneered, fought & won the civil war, it became independent of the Rothschild family. They saw the emergence of a giant that should also be under the influence of them. For them they needed a new arm to take care of affairs in the US and that came with the appointment of their representatives in the US as the Rockefeller family. Who today own 4.5% of 90% of the worlds companies. The Rockefeller family can be traced back to Goddard Rockenfeller descendant of Augier de Roquefeuil who was part of the same royal nobility of Rothschild. His direct descendent Johann Peter Rockefeller was the first Rockefeller to settle in America in 1787. There was an understanding between the two families and a mission to “keep it in the family” or rather the same bloodline to control world affairs. This was a mutual respect thing and this was honoured through John Davison Rockefeller who was the real pioneer of the family’s wealth with the founding of standard oil which at the time, there was no real use for oil. – until Henry ford invented the car in 1921 and heating oil was used extensively. Standard oil was split up in 1911 for competition reasons but the offshoots of this form all the major oil companies that exist today. Exxon Mobil, chevron and others.. His finacial clout and influence in science and politics set the scene we see today.
However, there exists today an intense rivalry between the Rockefellers and the Rothschild giants for overall control.
So what has this got to do with the current situation?
A lot.
There is a linear connection between the Rothschild’s and the Bank of England, and the London banking houses which ultimately controlled the Federal Reserve Banks through their stockholdings of bank stock and their subsidiary firms in New York. The two principal Rothschild representatives in New York, J. P. Morgan Co., and Kuhn,Loeb & Co. were the firms which set up the Jekyll Island Conference at which the Federal Reserve Act was drafted, that directed the subsequent successful and sneaky campaign to have the plan enacted into law by Congress, and who purchased the controlling amounts of stock in the Federal Reserve Bank of New York in 1914.
These firms had their principal officers appointed to the Federal Reserve Board of Governors and the Federal Advisory Council in 1914. In 1914 a few families (blood or business related) owning controlling stock in existing banks caused those banks to purchase controlling shares in the Federal Reserve regional banks. So this was a financial coup by Rothschild to own the US monetary supply through the Federal Reserve and having key people in it to control it. The list of connected people include JP Morgan, Brown Bros Harriman, Lazard Bros NY, Drexel & Company, Schroder Bank, Solomon Loeb and lastly, The Lehman Brothers, who all went on to form the Federal Reserve Bank Of New York. The major shareholders were National City Bank N.Y. now Citibank. The major shareholders of National City Bank N.Y were Rockefeller, JP Morgan, Payne family, Stilliman family, and the Edison family (now GE Company). So if you’re looking for a clues as to owns the federal reserve and thus, the issuance of all money in the US then look to The Rockefeller Family, Goldman Sachs, Lehman Brothers, Rothschild Family, Warburg Family, the IMF (international arm) and JP Morgan chase. These banks ARE the federal reserve system for without them, the fed could not exist as an entity in it’s present form with it’s present fiscal policy. Of course it’s more intermingled than this but the key aspect here is that there is a distinct Rockefeller/Rothschild connection.
Now, the problems we fact today stems from the very act of installing the Federal Reserve in 1914. This gave them limited power because at the time every dollar was convertable to an amount of Gold. Gold is the true measure of wealth and at the time, it could not be manipulated and this seemed like a fair setup. Until that is, the Second World War and this changed everything from a monetary perspective. It was a massive transfer of wealth from Europe to the US.
World War 2 was necessary to bring an end to Hitler’s reign. But what most people don’t realise is that Hitler was installed as a puppet by the Rothschild to further their agenda of a new united Europe. He was funded by George Prescott Bush (grandfather of George W Bush) to build the infrastructure of the Nazi Party and the means to orchestrate war. However, Hitler’s rise to power was enormously successful with massive support in his own country and even overseas before the war. He saw himself as a demigod with an unstoppable war machine but in reality he was a stooge of the Rothschild dynasty and funded by the Rockefeller dynasty that saw that he didn’t need them anymore to fulfil the goal of the “order”. i.e. he got power mad. Population control, human experiments, genocide and the occult was the order of the day. When he invaded Poland he crossed a line and Britain declared war on Germany. Later joined by the US who was reluctant to intervene because of their “investment”. They were however compelled to intervene because Hitler was literally a madman on the verge of invading the UK – and potentially the US. The old order was threatened by a delusional dictator and was a significant potential threat to the US. such an overt power grab would never have been successful because people would have seen it coming and it’s demise was inevitable. Order was maintained once Hitler was defeated and business could resume as normal but for the fact that vast sums of money was spent to fund the war and including the moving of all gold from the Bank of England to the US for “safe keeping” but in reality – payback to the Bush family and their other financiers for their lousy failed investment in Hitler. On top of this, vast assets were seized by the Nazis throughout the low countries of Holland, France, Belgium.
John Loftus, is a former U.S. Department of Justice Nazi War Crimes prosecutor the Nazi assets were transferred to through steel giant, Thyssen and various auspicious individuals in Holland where they eventually made their way back to the Bush Family the original investment. and with it, Nazi scientists and high ranking individuals were taken back to the US for favoured treatment in operation paperclip. In fact NASA was formed from these scientists who have controlled the philosophy of the Nasa agenda for 50 years through JPL in Pasadena, California.
So, with order maintained, this brought rise to 730 delegates from all 44 Allied nations gathered at the Mount Washington Hotel in Bretton Woods, New Hampshire, United States, for the United Nations Monetary and Financial Conference. The delegates deliberated upon and signed the Bretton Woods Agreements during the first three weeks of July 1944. Setting up a system of rules, institutions, and procedures to regulate the international monetary system. This agreement founded part of the World Bank and the IMF as we know it today. The policies of this body along with the world bank dictate how other countries should go about their business.
The Bretton Woods economic system required an accepted vehicle for investment, trade, and payments. Unlike national economies, however, the international economy lacked a central government that could issue currency and manage its use. In the past this problem had been solved through the gold standard, but the architects of Bretton Woods did not consider this option feasible for the post-war political economy because the UK had given all its gold away to the US. Instead, they set up a system of *fixed* exchange rates (which was then a very liquid gold standard currency) as the reserve currency. This placed a lot of trust in the Federal Reserve who were the stewards of this new solid currency. However, this system was set up to fail and it was cleverly orchestrated by the Rothschild’s by the funding of communism in Russia way earlier for reasons we will see below.
The Gold Standard system worked very well because imbalances in international trade were rectified automatically by the gold standard. A country with a deficit (debt) would have depleted gold reserves and would thus have to reduce its money supply. The resulting fall in domestic demand for goods would reduce imports and the lowering of prices would boost exports; thus the deficit would be rectified. The strength of the U.S. economy, the fixed relationship of the dollar to gold ($35 an ounce), and the commitment of the U.S. government to convert dollars into gold at that price made the dollar as “good as gold”. (and lots of newly acquired gold from the UK and laundered Nazi assets)
In fact, the dollar was even better than gold: it earned a lot of respect, everyone wanted to be paid in dollars and all the worlds commodities were priced in dollars – it was rock solid. It even earned Interest (which physical gold did not) it was more flexible and transportable than gold. Gold production however, was not sufficient to meet the demands of growing international trade and investment. A sizeable share of the world’s known gold reserves were located in the (Non Rothschild) Soviet Union and this posed a significant threat to the worlds *capitalist* economy of growth but more importantly, the Gold standard.
This is one of the reasons why communism was then parleyed as a bad thing in the US because they (Russia) could effectively flood the market with gold and thus devalue the dollar and all the other currencies pegged against it at will or even become a world financial superpower that rivalled the control of the elite. This gave rise to such anti communism ventures as the Cold War and thus, the Vietnam War which under Richard Nixon used this as an excuse to abolish the gold standard citing ‘fiscal strain’. Massive expenditure on the war caused the US to grow further in to debt and had to print more dollars to pay this debt. Increasingly, other countries like France and the UK (Rothschild heartlands) then demanded that they actually be paid in gold and thus, and did so in massive numbers to the extent that Nixon was left with no choice but to eliminate the fixed gold price and caused the gold standard system to break down.
This meant that the $35 dollars would no longer be worth 1oz of gold. And all fixed currencies against the dollar were effectively under the control of the US – and specifically the Federal Reserve and its shareholders. i.e. Rockefeller. The US Dollar became what is known as a “fiat currency” i.e. based on thin air. The losers of this episode were the US tax payer. The Roth’s got (some) of their gold back
and the Rockefeller Federal reserve was free to manipulate the money supply.
This breakdown and the unwanted control of other currencies by the US federal reserve system of companied paved the way for the European Exchange Rate Mechanism, (ERM) It was a system introduced by the European Community in March 1979, as part of the European Monetary System (EMS), to reduce exchange rate variability and achieve monetary stability in Europe, in preparation for Economic and Monetary Union and the introduction of a “single currency”. This was achieved in the form of the Euro on 1st January 1999. However, in order for the Rothschild’s to regain in their power from the Rockefellers they really neede a one world currency and a one world government. And in order to achieve this, the US dollar and the power from the Rockefellers must be destroyed and we have been seeing this happen slowly since the year 2000 it just hasn’t surfaced, yet.
The iraq war changed a lot of things – firstly it was a war for oil but not for the physical black stuff – it was a war for oil to be priced in Dollars and if this happened, all the other middle eastern countries would have followed suit. Saddam Hussein in 2000 decreed that he will sell his oil in Euros and thus eliminating the need for dollars. 9-11 gave the US the perfect excuse to invade and regain control of the oil market. With the exception of Iran who today is still pondering the idea of pricing it’s oil in Euros amid sabre rattling from the current US administration.
Recently, we find the same situation in that occurred in Vietnam manifesting itself in Iraq and Afghanistan. Massive borrowing and spending on a scale never seen before. The Bush administration has allowed the Federal Reserve to print money like it’s going out of fashion and the US government has issued an unprecedented number of bonds through the treasuries market. The illusion is further reinforced by investment banks’ “alchemy” of creating exotic derivatives and options that you need a PhD to understand. This serves the use of creating more money out of thin air from the money that was made out of thin air in the first place through the Federal Reserve while at the same time hiding them from regulators through their shear complexity and secrecy through relentless de-regulation of the industry.
In short this current system is set up to fail catastrophically just like it did with the Bretton woods collapse – however, there is no goodwill left to back up all the dollar debt they are in.
These complex instruments are known as derivatives – e.g. Collateralised Debt Obligations (CDO’s), Credit default swaps & carry trades which are the three biggest threats to the financial system because the risk of holding these currently unknown even to the investment banks and governments that own, regulate and sell them. (i.e. how far the market is going to fall) Its blind investing geared to bring down the investment banks (i.e. the federal reserve) financial system as we know it just as the Bretton woods gold standard was brought down through the immense debt created in the Vietnam War but 10 times worse.
Money works like this: If the Fed loans xyz investment bank $100m at an interest rate of 2%, xyz investment bank can then loan out $1bn to various retail banks and other financial companies at interest of say 3% – this money is then loaned to the general population at 5% – Now the trick here is that in order to pay it back to the fed, this “financial carousel” must find a way to pay it back to the federal reserve and the only way to do that is to borrow even more money from the federal reserve at 2%. Now since they control the *only* instrument that is acceptable (money). This means that the system is SPECIFICALLY designed to keep everyone in eternal debt forever. The money can never be paid back and the capitalist/ corporation wheels must get bigger and bigger in order to stay afloat. This is why western societies based on this capitalist ideals have advanced way beyond countries that don’t have interest (i.e. most Muslim countries) This capitalist system of interest on money has directly benefited the Rockefeller corporate empire and has allowed them to amass great wealth – and with it, power.
The problem arises when there is no more capacity or means to pay it back.
And this has slowly happened over the course of the Bush administration, raped of its entire manufacturing base, massive off shoring of jobs to china and India by the same Rockefeller corporations. The US people can not pay any of this money back as it has been sterilised from manufacturing goods and services that people need. This has manifested itself into the form of the CDO’s which are securities based on a package of mortgages. Retail financial sell these to investment banks as a package and the investment bank gets the interest on the loan etc. This is the source of the (current) credit crisis that is far from over.
Remember that the debt has to be paid back to the Federal Reserve by the investment banks right?
If the people can’t pay the money back then the investment banks have to. In the case of Lehman brothers they owed more than they were worth as an entity and were forced into to bankruptcy. The domino effect is now about to unravel and be exposed.
Now we have things called Credit Default Swaps which is like an insurance policy against a company going bust. So say I am dealing with abc company and they owe me money in the next 10 years, I can buy a CDS to insure me against abc company going bankrupt or defaulting on a payment to another entity. You are going to be reading more and more about CDSs over the months ahead. It will become as familiar as the phrase “subprime mortgage” was in 2007. Unfortunately, there were “only” $1.3 trillion worth of subprime mortgages and the CDS market is 48 times bigger than that to the tune of $62 trillion –more than four times bigger than U.S. GDP.
In December 2000, Phil Gramm (McCain’s Economic Advisor) while a U.S. Senator, snuck in a 262-page amendment to a government re-authorization bill that created what is now the $62 trillion market for credit default swaps (CDSs). (almost anticipating a spree) The buyer would be an investment bank or underwiter so you’d expect some sort of protection here in the murky world of investment banking but Credit Suisse cited AIG’s (Americas largest insurer) credit default swap portfolio as a problem and said it estimated that AIG Financial Products is sitting on a current $6.5 billion loss (as of August 25th 2008). This is a gross underestimation because AIG is the biggest underwriter of Credit default swaps in the world. Meaning that the total exposure of $62 trillion is not accounted for in the Credit Suisse report. This means that in the current unwinding and further bankruptcies, AIG is in trouble. New York has even allowed AIG to “borrow from itself” which further reinforced the hideous situation we see. If that happens then benefactors of realised CDSs (investment banks) are going to lose out and further facilitate the domino effect of failing investment banks. Now we have the situation where the federal reserve has lent AIG $80 bln as a temporary measure to pay out the investment banks and this has shored up the market temporarily.
AIG had super senior (AAA+) protection through a whopping $513bn worth of credit default swaps. Of this, $63bn are on CDOs which contain US sub-prime mortgages. AIG has also written CDS on $141bn of European residential mortgages. And we see there a downturn in the housing market. So if AIG (federal reserve) goes under then Europen investment banks will start to fail in addition to the US ones.
Now, also very worryingly. Yesterday (15th Sept 08) the Federal Reserve has come out to all the investment banks (that still exist) saying that they can now swap their CDO’s CDS and every other thing they can’t sell (i.e. worthless securities) for US dollars. This is hideous because the fed will then have a massive obligation to honour these securities. They must know that this will ultimately lead to the demise of itself – unless it borrows more money from china and Japan to fund it.
This is going to further debt to the Federal Reserve – or more importantly, the US dollar itself.
In remember in reality this was all money that could never be paid back anyway. So someone has to carry the can, ok?
This can mean only one thing is going to happen – when the investment banks pass on all their crap to the fed, the fed will be stuck holding the hot potato with the obligation to pay out upon maturity all the derivatives it holds.
The Dollar is going to become worthless.
When the 30th September comes (end of the US fiscal year) they will have to come clean to the rest of the world as to how much debt and obligation they are in and will have to pay out on all it’s bonds, treasuries, notes as they expire at the months end. If they can’t pay this (which this mess assures it can not), The dollar itelf will default and America will go bankrupt just like Germany did after the second world war. Remember people carrying wheel barrows of cash just to buy a loaf of bread?
This will be a mass transfer of wealth just like the Nazis did in the second world war.
Either way, the US Dollar and way of life as we know it will cease to exist. and this will send stock markets around the world plummeting. Baron Rothschild, an 18th century British nobleman and member of the Rothschild banking family, is credited with saying that “The time to buy is when there’s blood in the streets.”
He should know. Rothschild made a fortune buying in the panic that followed the Battle of Waterloo against Napoleon based in inside information through his carrier pigeon network. But that’s not the whole story. Baron Rothschild funded both sides of the war as a hedge and then cleaned up with buying all the cheap company stock of the losing country. The original quote is believed to be “Buy when there’s blood in the streets, even if the blood is your own.”.
This is a key clue.
Today we face a similar situation. When all the stock markets go tits up – the scavengers (Roths and Rocks et-al) will swoop and buy up all the companies at a discount of 50% or more – not just in the US but more importantly, China – who’s currency is pegged to the US. So if the Dollar defaults, so does china.
With it’s massive manufacturing base and people. This will be the perfect time to buy chinese stocks. If they own China then they will have even more power. … If they have inside information about the true state of the Federal Reserve then they will be set for a financial Coup d’état to further their agenda of a world wide power grab.
Hideous but people can see their agenda now.
So, when will this happen? Shortly after September 30th 2008 is a good candidate to see a financial collapse once people are not getting paid by the US. This is after the end of the US governments fiscal year when it has to declare all of its debt and the debt of all the crap that the investment banks will be offloading onto it in the coming couple of weeks. There’s no way the fed can continue to pay its current debt AND the debt of all the Derivatives it’s currently taking on. The collapse will be on the scale never seen before. It will send financial and political shockwaves around the world on financial markets.
Think of today’s events, then times it by 10. In other words the DOW certainly dropping 5000 points possibly even 8000 – the shockwave of this will make 1929 look like a walk in the park. And the orchestrators will benefit accordingly.
This is nothing short of orchestrated financial collapse created by deception and scheming of two rival families who have long term goals of a one world currency and a one world government. This impending (to come) crash will facilitate the end of the US dollar, the US, and the creation of a Euro style currency and government to replace it. This will be The Amero and the North American Union which will if instigated, will destroy the noble American constitution and placehold it’s people into a collective of the New World Order under the control of the elite.
So in conclusion, the collapse is due to two things.
1. Incredible genius by the elite used to orchestrate this event.
2. Incredible stupidity on the part of the elite.
You decide. Either way – would you still want to be governed by this same elite in what the future holds?
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Important Update 23 Jan 2009
The next leg of the financial collapse is coming and will start in 2 months – Thursday 19th March 2009 to be very precise . Dow Jones is currently about 8000 but I’m expecting it collapse catastrophically less than 6000 initialy then a slow decline to 500-1500 over the next 2 years, From this day onwards the plunge protection team has got no more money left to support the market and no one has confidence in it anymore – especially because the new Obama administration is doing nothing to address the problems that face the economy. But this isn’t about money and finance, it’s about change in all areas of society as we know it – political and idealogical changes are coming and are on the same horizon if the axioms of the status quo disappear how can the p that b keep it’s control?
How do I know this?
An article on urbansurvival (excellent financial blog by the way) about 4 months ago george mentioned a guy called Martin A Armstrong in passing in comment on another subkect completely, Curious to who he was I looked him up and found out that he predicted every market crash and boom of the past 30 years – to the day. . He was so good in fact that the CIA got in contact with him asking for his ‘prediction model’ beleiving that he was controlling the market in some shape or form. (only the plunge protection team do that don’t they?) Ayway, armstrong refused co-operating and was subsequently thrown in prison for his non compliance – without a trial for 7 years. However, last October, Armstrong released a paper outlining his model in detail called “It’s just time” (download it from here if you’re feeling intellegent) inferring that all economic cycles run in 8.6 year cycles from boom to boom and bust to bust.
Quite importantly, as a resut of just finishing reading all 77 pages of this document is knowing that the next 8.6 year cycle falls on the 19th March 2009 and will last for 2 years. However there are other cycles of time that converge on and around this time frame that signal political idealogical and religious cycles which signal even greater magnitudal changes on the horizon. These will be POSITIVE changes for the many but the people who’ve had it on easy street for the last few decades will find they have to start working for a living (myself included as I work for an Investment Bank! – who are all going to collapse by the way because thr bottom will fall out of the bond market this summer) It will lead to an age of more openess, transparency and fairness across all nations and peoples without having to resort to war in order to make people rich. Remember that ALL wealth is made at the direct expense of someone who has to go without or has something taken away from them. It’s always been this way since the time of the Babylonians. Through the introduction of interest rates that keep civilizations enslaved in perpetual debt.. until there’s no one willing to enter the pyramid/ponzi scheme to simple manufacturing jobs that produce widgets at lower cost (and lower wages to the worker) The playing field is going to change and the elite know it. They are more scared than others who have any kind of remote view of what’s on the horizon because they are partly responsible for it – and the chaos that will ensue. People in the near future are not going to be judged by how much money they have or what car they drive but how sincere and forgiving their heart is towards other people. The elite will no longer be in power. In fact, you will but from a completely different perspective where money doesn’t exist inas much as it doesn’t have any value (think zimbabwe with 1 trillion dollar notes). And a form of anarchy will become the norm (word anarchy, it is simply a latin word meaning ‘without government’.) The elite have and do control the government but without the elite, you have no government and anarchy forms – people govern themselves like they do in remote forests of the world that have never seen civilisation. Without government there’s no control mechanism and then you will truly be free… well, it’s only when you have lost everything you are truly free to do anything.. we’re already seeing this pattern emerge in eastern europe where they know their governments are corrupt and are rioting in protest.
‘It’s just time’ that will tell if/when/where/how/why this patern will emerge in the western world. I’m just giving you a heads up here…wait till 19th March.
If you’r einterested any more in this stuff then read urbansurvival each day to get an entertaining and great view before you see it on the nightly news – I’m too busy making money at the expense of someone else but I expect this axiom to not last very long.
Peace and love to all!
Icanhastruth - 