Articles Of Interest

Who Owns The Federal Reserve?

Who Owns The Federal Reserve?

The Fed Is Privately Owned. Its Shareholders Are Private Banks



"Some people think that the Federal Reserve Banks are United States Government institutions. They are private monopolies which prey upon the people of United States for the benefit of themselves and their foreign customers; foreign and domestic speculators and swindlers; and rich and predatory money lenders."
Louis McFadden, Chairman of the House Banking and Currency Committee in the 1930s

The Federal Reserve (or Fed) has assumed sweeping new powers in the last year. In an unprecedented move in March 2008, the New York Fed advanced the funds for JPMorgan Chase Bank to buy investment bank Bear Stearns for pennies on the dollar. The deal was particularly controversial because Jamie Dimon, CEO of JPMorgan, sits on the board of the New York Fed and participated in the secret weekend negotiations. In September 2008, the Federal Reserve did something even more unprecedented, when it bought the world's largest insurance company. The Fed announced on September 16 that it was giving an $85 billion loan to American International Group (AIG) for a nearly 80% stake in the mega-insurer. The Associated Press called it a "government takeover," but this was no ordinary nationalization. Unlike the U.S. Treasury, which took over Fannie Mae and Freddie Mac the week before, the Fed is not a government-owned agency. Also unprecedented was the way the deal was funded. The Associated Press reported:
"The Treasury Department, for the first time in its history, said it would begin selling bonds for the Federal Reserve in an effort to help the central bank deal with its unprecedented borrowing needs."
This is extraordinary. Why is the Treasury issuing U.S. government bonds (or debt) to fund the Fed, which is itself supposedly "the lender of last resort" created to fund the banks and the federal government? Yahoo Finance reported on September 17:
"The Treasury is setting up a temporary financing program at the Fed's request. The program will auction Treasury bills to raise cash for the Fed's use. The initiative aims to help the Fed manage its balance sheet following its efforts to enhance its liquidity facilities over the previous few quarters."
Normally, the Fed swaps green pieces of paper called Federal Reserve Notes for pink pieces of paper called U.S. bonds (the federal government's I.O.U.s), in order to provide Congress with the dollars it cannot raise through taxes. Now, it seems, the government is issuing bonds, not for its own use, but for the use of the Fed! Perhaps the plan is to swap them with the banks' dodgy derivatives collateral directly, without actually putting them up for sale to outside buyers. According to Wikipedia (which translates Fedspeak into somewhat clearer terms than the Fed's own website):
"The Term Securities Lending Facility is a 28-day facility that will offer Treasury general collateral to the Federal Reserve Bank of New York's primary dealers in exchange for other program-eligible collateral. It is intended to promote liquidity in the financing markets for Treasury and other collateral and thus to foster the functioning of financial markets more generally. . . . The resource allows dealers to switch debt that is less liquid for U.S. government securities that are easily tradable."
"To switch debt that is less liquid for U.S. government securities that are easily tradable" means that the government gets the banks' toxic derivative debt, and the banks get the government's triple-A securities. Unlike the risky derivative debt, federal securities are considered "risk-free" for purposes of determining capital requirements, allowing the banks to improve their capital position so they can make new loans. (See E. Brown, "Bailout Bedlam," webofdebt.com/articles, October 2, 2008.)
In its latest power play, on October 3, 2008, the Fed acquired the ability to pay interest to its member banks on the reserves the banks maintain at the Fed. Reuters reported on October 3:
"The U.S. Federal Reserve gained a key tactical tool from the $700 billion financial rescue package signed into law on Friday that will help it channel funds into parched credit markets. Tucked into the 451-page bill is a provision that lets the Fed pay interest on the reserves banks are required to hold at the central bank."
If the Fed's money comes ultimately from the taxpayers, that means we the taxpayers are paying interest to the banks on the banks' own reserves - reserves maintained for their own private profit. These increasingly controversial encroachments on the public purse warrant a closer look at the central banking scheme itself. Who owns the Federal Reserve, who actually controls it, where does it get its money, and whose interests is it serving?
Not Private and Not for Profit?
The Fed's website insists that it is not a private corporation, is not operated for profit, and is not funded by Congress. But is that true? The Federal Reserve was set up in 1913 as a "lender of last resort" to backstop bank runs, following a particularly bad bank panic in 1907. The Fed's mandate was then and continues to be to keep the private banking system intact; and that means keeping intact the system's most valuable asset, a monopoly on creating the national money supply. Except for coins, every dollar in circulation is now created privately as a debt to the Federal Reserve or the banking system it heads. The Fed's website attempts to gloss over its role as chief defender and protector of this private banking club, but let's take a closer look. The website states:
* "The twelve regional Federal Reserve Banks, which were established by Congress as the operating arms of the nation's central banking system, are organized much like private corporations - possibly leading to some confusion about "ownership." For example, the Reserve Banks issue shares of stock to member banks. However, owning Reserve Bank stock is quite different from owning stock in a private company. The Reserve Banks are not operated for profit, and ownership of a certain amount of stock is, by law, a condition of membership in the System. The stock may not be sold, traded, or pledged as security for a loan; dividends are, by law, 6 percent per year."
* "[The Federal Reserve] is considered an independent central bank because its decisions do not have to be ratified by the President or anyone else in the executive or legislative branch of government, it does not receive funding appropriated by Congress, and the terms of the members of the Board of Governors span multiple presidential and congressional terms."
* "The Federal Reserve's income is derived primarily from the interest on U.S. government securities that it has acquired through open market operations. . . . After paying its expenses, the Federal Reserve turns the rest of its earnings over to the U.S. Treasury."
So let's review:
1. The Fed is privately owned.
Its shareholders are private banks. In fact, 100% of its shareholders are private banks. None of its stock is owned by the government.
2. The fact that the Fed does not get "appropriations" from Congress basically means that it gets its money from Congress without congressional approval, by engaging in "open market operations."
Here is how it works: When the government is short of funds, the Treasury issues bonds and delivers them to bond dealers, which auction them off. When the Fed wants to "expand the money supply" (create money), it steps in and buys bonds from these dealers with newly-issued dollars acquired by the Fed for the cost of writing them into an account on a computer screen. These maneuvers are called "open market operations" because the Fed buys the bonds on the "open market" from the bond dealers. The bonds then become the "reserves" that the banking establishment uses to back its loans. In another bit of sleight of hand known as "fractional reserve" lending, the same reserves are lent many times over, further expanding the money supply, generating interest for the banks with each loan. It was this money-creating process that prompted Wright Patman, Chairman of the House Banking and Currency Committee in the 1960s, to call the Federal Reserve "a total money-making machine." He wrote:
"When the Federal Reserve writes a check for a government bond it does exactly what any bank does, it creates money, it created money purely and simply by writing a check."
3. The Fed generates profits for its shareholders.
The interest on bonds acquired with its newly-issued Federal Reserve Notes pays the Fed's operating expenses plus a guaranteed 6% return to its banker shareholders. A mere 6% a year may not be considered a profit in the world of Wall Street high finance, but most businesses that manage to cover all their expenses and give their shareholders a guaranteed 6% return are considered "for profit" corporations.
In addition to this guaranteed 6%, the banks will now be getting interest from the taxpayers on their "reserves." The basic reserve requirement set by the Federal Reserve is 10%. The website of the Federal Reserve Bank of New York explains that as money is redeposited and relent throughout the banking system, this 10% held in "reserve" can be fanned into ten times that sum in loans; that is, $10,000 in reserves becomes $100,000 in loans. Federal Reserve Statistical Release H. puts the total "loans and leases in bank credit" as of September 24, 2008 at $7,049 billion. Ten percent of that is $700 billion. That means we the taxpayers will be paying interest to the banks on at least $700 billion annually - this so that the banks can retain the reserves to accumulate interest on ten times that sum in loans.
The banks earn these returns from the taxpayers for the privilege of having the banks' interests protected by an all-powerful independent private central bank, even when those interests may be opposed to the taxpayers' -- for example, when the banks use their special status as private money creators to fund speculative derivative schemes that threaten to collapse the U.S. economy. Among other special benefits, banks and other financial institutions (but not other corporations) can borrow at the low Fed funds rate of about 2%. They can then turn around and put this money into 30-year Treasury bonds at 4.5%, earning an immediate 2.5% from the taxpayers, just by virtue of their position as favored banks. A long list of banks (but not other corporations) is also now protected from the short selling that can crash the price of other stocks.
Time to Change the Statute?
According to the Fed's website, the control Congress has over the Federal Reserve is limited to this:
"The Federal Reserve is subject to oversight by Congress, which periodically reviews its activities and can alter its responsibilities by statute."
As we know from watching the business news, "oversight" basically means that Congress gets to see the results when it's over. The Fed periodically reports to Congress, but the Fed doesn't ask; it tells. The only real leverage Congress has over the Fed is that it "can alter its responsibilities by statute." It is time for Congress to exercise that leverage and make the Federal Reserve a truly federal agency, acting by and for the people through their elected representatives. If the Fed can demand AIG's stock in return for an $85 billion loan to the mega-insurer, we can demand the Fed's stock in return for the trillion-or-so dollars we'll be advancing to bail out the private banking system from its follies.
If the Fed were actually a federal agency, the government could issue U.S. legal tender directly, avoiding an unnecessary interest-bearing debt to private middlemen who create the money out of thin air themselves. Among other benefits to the taxpayers. a truly "federal" Federal Reserve could lend the full faith and credit of the United States to state and local governments interest-free, cutting the cost of infrastructure in half, restoring the thriving local economies of earlier decades.

Ellen Brown, J.D., developed her research skills as an attorney practicing civil litigation in Los Angeles. In Web of Debt, her latest book, she turns those skills to an analysis of the Federal Reserve and "the money trust." She shows how this private cartel has usurped the power to create money from the people themselves.

The Secrets Of The Federal Reserve

The House of Rothschild

excerpted from the book - The Secrets of the Federal Reserve
by Eustace Mullins


Page-47

The success of the Federal Reserve Conspiracy will raise many questions in the minds of readers who are unfamiliar with the history of the United States and finance capital. How could the Kuhn, Loeb-Morgan alliance, powerful though it might be, believe that it would be capable, first, of devising a plan which would bring the entire money and credit of the people of the United States into their hands, and second, of getting such a plan enacted into law?
The capability of devising and enacting the "National Reserve Plan", as the immediate result of the Jekyll Island expedition was called, was easily within the powers of the Kuhn, Loeb-Morgan alliance, according to the following from McClure's Magazine, August 1911, "The Seven Men" by John Moody:
Seven men in Wall Street now control a great share of the fundamental industry and resources of the United States. Three of the seven men, J.P. Morgan, James J. Hill, and George E Baker, head of the First National Bank of New York belong to the so-called Morgan group; four of them, John D. and William Rockefeller, James Stiliman, head of the National City Bank, and Jacob H. Schiff of the private banking firm of Kuhn, Loeb Company, to the so-called Standard Oil City Bank group... the central machine of capital extends its control over the United States... the process is not only economically logical; it is now practically automatic.

Thus we see that the 1910 plot to seize control of the money and credit of the people of the United States was planned by men who already controlled most of the country's resources.

... the most powerful men in the United States were themselves answerable to another power, a foreign power, and a power which had been steadfastly seeking to extend its control over the young republic of the United States since its very inception. This power was the financial power of England, centered in the London Branch of the House of Rothschild. The fact was that in 1910, the United States was for all practical purposes being ruled from England, and so it is today [1911]. The ten largest bank holding companies in the United States are firmly in the hands of certain banking houses, all of which have branches in London. They are J.P. Morgan Company, Brown Brothers Harriman, Warburg, Kuhn, Loeb and J. Henry Schroder. All of them maintain close relationships with the House of Rothschild, principally through the Rothschild control of international money markets through its manipulation of the price of gold. Each day, the world price of gold is set in the London office of N.M. Rothschild and Company. Although these firms are ostensibly American firms, which merely maintain branches in London, the fact that these banking houses actually take their direction from London.


Page-48

The slave for centuries had its headquarters in Venice, until Seventeenth Century Britain, the new master of the seas, used its control of the oceans to gain a monopoly. As the American colonies were settled, its fiercely independent people, most of whom did not want slaves, found to their surprise that slaves were being sent to our ports in great numbers.

... The pre-eminence of J.P. Morgan and the Brown firm in American finance can be dated to the development of Baltimore as the nineteenth century capital of the slave trade. Both of these firms originated in Baltimore, opened branches in London, came under the aegis of the House of Rothschild and returned to the United States to open branches in New York and to become the dominant power, not only in finance, but also in government.

... To understand why these firms operate as they do, it is necessary to give a brief history of their origins. Few Americans know that J.P. Morgan Company began as George Peabody and Company... The behind the scenes power wielded by this firm is indicated by the fact that Sir Montagu Norman, Governor of the Bank of England for many years, was a partner of Brown, Shipley and Company. Considered the single most influential banker in the world, Sir Montagu Norman was organizer of "informal talks" between heads of central banks in 1927, which led directly to the Great Stockmarket Crash of 1929.

... Soon after he arrived in London, George Peabody was surprised to be summoned to an audience with the gruff Baron Nathan Mayer Rothschild. Without mincing words, Rothschild revealed to Peabody, that much of the London aristocracy openly disliked Rothschild and refused his invitations. He proposed that Peabody, a man of modest means, be established as a lavish host whose entertainments would soon be the talk of London. Rothschild would, of course, pay all the bills. Peabody accepted the offer, and soon became known as the most popular host in London.

... It is hardly surprising that the most popular host in London would also become a very successful businessman, particularly with the House of Rothschild supporting him behind the scenes. Peabody often operated a capital of 500,000 pounds on hand, and became very astute in his buying and selling on both sides of the Atlantic. His American agent was the Boston firm of Beebe, Morgan and Company, headed by Junius S. Morgan, father of John Pierpont Morgan. Peabody, who never married, had no one succeed him, and he was favorably impressed by the tall, handsome Junius Morgan. He persuaded Morgan to join him in London as a partner in George Peabody and Company in 1854.


Page-50

Although Nicholas Biddle was President of the Bank of the United I States, it was well known that Baron James de Rothschild of Paris was the principal investor in this central bank. Although Jackson had vetoed the renewal of the charter of the Bank of the United States, he probably was unaware that a few months earlier, in 1835, the House of Rothschild had cemented a relationship with the United States Government by superseding the firm of Baring as financial agent of the Department of State on January 1, 1835.
Henry Clews, the famous banker, in his book, Twenty-Eight Years in Wall Street, states that the Panic of 1837 was engineered because the charter of the Second Bank of the United States had run out in 1836. Not only did President Jackson promptly withdraw government funds from the Second Bank of the United States, but he deposited these funds, $10 million, in state banks. The immediate result, Clews tell us, is that the country began to enjoy great prosperity. This sudden flow of cash caused an immediate expansion of the national economy, and the government paid off the entire national debt, leaving a surplus of $50 million in the Treasury.

The European financiers had the answer to this situation. Clews further states, "The Panic of 1837 was aggravated by the Bank of England when it in one day threw out all the paper connected with the United States."

The Bank of England, of course, was synonymous with the name of Baron Nathan Mayer Rothschild. Why did the Bank of England in one day "throw out" all paper connected with the United States, that is, refuse to accept or discount any securities, bonds or other financial paper based in the United States? The purpose of this action was to create an immediate financial panic in the United States, cause a complete contraction of credit, halt further issues of stocks and bonds, and ruin those seeking to turn United States securities into cash.

... George Peabody found that he had chosen well in selecting Junius S. Morgan as his successor. Morgan agreed to continue the sub rosa relationship with N.M. Rothschild Company, and soon expanded the firm's activities by shipping large quantities of railroad iron to the United States. It was Peabody iron which was e foundation for much of American railroad tracks from 1860 to 1890. In 1864, content to retire and leave his firm in the hands of Morgan, Pierpont allowed the name to be changed to Junius S. Morgan Company. The Morgan firm then and since has always been directed from London. John Pierpont Morgan spent much of his time at his magnificent London mansion, Prince's Gate.

One of the high water marks of the successful Rothschild-Peabody-Morgan business venture was the Panic of 1857.

...After the panic had been engineered, one firm came into the market with one million pounds in cash, purchased securities from distressed investors at panic prices, and later resold them at an enormous profit. That firm was the Morgan firm, and behind it was the clever maneuvering of Baron Nathan Mayer Rothschild.


Page-53

Lyndon LaRouche tells us that on February 5, 1891, a secret association known as the Round Table Group was formed in London by Cecil Rhodes, his banker, Lord Rothschild, the Rothschild in-law, Lord Rosebery, and Lord Curzon. He states that in the United States the Round Table was represented by the Morgan group. Dr. Carroll Quigley refers to this group as "The British-American Secret Society" in Tragedy and Hope, stating that "The chief backbone of this organization grew up along the already existing financial cooperation running from the Morgan Bank in New York to a group of international financiers in London led by Lazard Brothers (in 1901)."
William Guy Carr, in Pawns In The Game states that, "In 1899, J.P. Morgan and Drexel went to England to attend the International Bankers Convention. When they returned, J.P. Morgan had been appointed head representative of the Rothschild interests in the United States. As the result of the London Conference, J.P. Morgan and Company of New York, Drexel and Company of Philadelphia, Grenfell and Company of London, and Morgan Harjes Cie of Paris, M.M. Warburg Company of Germany and America, and the House of Rothschild were all affiliated."


Page-54

After World War I, the Round Table became known as the Council on Foreign Relations in the United States, and the Royal Institute of International Affairs in London. The leading government officials of both England and the United States were chosen from its members. In the 1960s, as growing attention centered on the surreptitious governmental activities of the Council on Foreign Relations, subsidiary groups, known as the Trilateral Commission and the Bilderbergers, representing the identical financial interests, began operations...


Page-55

According to William Guy Carr, in Pawns In The Game," the initial meeting of these ex officio planners took place in Mayer Amschel Bauer's Goldsmith Shop in Frankfurt in 1773. Bauer, who adopted-the name of "Rothschild" or Red Shield, from the red shield which he hung over his door to advertise his business ... was only thirty years of age when he invited twelve other wealthy and influential men to meet him in Frankfurt. His purpose was to convince them that if they agreed to pool their resources they could then finance and control the World Revolutionary Movement and use it as their Manual of Action to win ultimate control of the wealth, natural resources, and manpower of the entire world. This agreement reached, Mayer unfolded his revolutionary plan. The project would be backed by all the power that could be purchased with their pooled resources. By clever manipulation of their combined wealth it would be possible to create such adverse economic conditions that the masses would be reduced to a state bordering on starvation by unemployment... Their paid propagandists would arouse feelings of hatred and revenge against the ruling classes by exposing all real and alleged cases of extravagance, licentious conduct, injustice, oppression, and persecution. They would also invent infamies to bring into disrepute others who might, if left alone, interfere with their overall plans... Rothschild turned to a manuscript and proceeded to read a carefully prepared plan of action.

1. He argued that LAW was FORCE only in disguise. He reasoned it was logical to conclude 'By the laws of nature right lies in force.

2. Political freedom is an idea, not a fact. In order to usurp political power all that was necessary was to preach 'Liberalism' so that the electorate, for the sake of an idea, would yield some of their power and prerogatives which the plotters could then gather into their own hands.

3. The speaker asserted that the Power of Gold had usurped the power of Liberal rulers .... He pointed out that it was immaterial to the success of his plan whether the established governments were destroyed by external or internal foes because the victor had to of necessity ask the aid of 'Capital' which 'Is entirely in our hands'

4. He argued that the use of any and all means to reach their final goal was justified on the grounds that the ruler who governed by the moral code was not a skilled politician because he left himself vulnerable and in an unstable position.

5. He asserted that 'Our right lies in force. The word RIGHT is an abstract thought and proves nothing. I find a new RIGHT... to attack by the Right of the Strong, to reconstruct all existing institutions, and to become the sovereign Lord of all those who left to us the Rights to their powers by laying them down to us in their liberalism.

6. The power of our resources must remain invisible until the very moment when it has gained such strength that no cunning or force can undermine it.

He went on to outline twenty-five points.

Number 8 dealt with the use of alcoholic liquors, drugs, moral corruption, and all vice to systematically corrupt youth of all nations.

9. They had the right to seize property by any means, and without hesitation, if by doing so they secured submission and sovereignty.

10. We were the first to put the slogans Liberty, Equality, and Fraternity into the mouths of the masses, which set up a new aristocracy. The qualification for this aristocracy is WEALTH which is dependent on us.

11. Wars should be directed so that the nations engaged on both sides should be further in our debt.

12. Candidates for public office should be servile and obedient to our commands, so that they may readily be used.

13. Propaganda-their combined wealth would control all outlets of public information.

14. Panics and financial depressions would ultimately result in World Government, a new order of one world government."


Page-56

E.C. Knuth writes, in The Empire of the City
The fact that the House of Rothschild made its money in the great crashes of history and the great wars of history, the very periods when others lost their money, is beyond question.


Page-59

Because of his success in his speculations, Baron Nathan Mayer Rothschild, as he now called himself, reigned as the supreme financial power in London. He arrogantly exclaimed, during a party in his mansion, "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."
His brother James in Paris had also achieved dominance in French finance. In Baron Edmond de Rothschild, David Druck writes, "(James) Rothschild's wealth had reached the 600 million mark. Only one man in France possessed more. That was the King, whose wealth was 800 million. The aggregate wealth of all the bankers in France was 150 million less than that of James Rothschild. This naturally gave him untold powers, even to the extent of unseating governments whenever he chose to do so...


Page-60

The Rothschilds bought control of Reuters International News Agency, based in London, Havas of France, and Wolf in Germany, which controlled the dissemination of all news in Europe.
In "Inside Europe", John Gunther wrote in 1936 that any French prime minister, at the end of 1935, was a creature of the financial oligarchy, and that this financial oligarchy was dominated by twelve regents, of whom six were bankers, and were headed by Baron Edmond de Rothschild.

911



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(The following is an attempt to present in a compact form the claims made by Dick Eastman, Tom Flocco, V.K. Durham, Karl Schwarz and put together in an the article by E.P. Heidner dated 28th June 2008 to the effect that the September 11th attacks were intended to cover-up the clearing of the 1991 issuance of $240 billion in covert securities to fund an economic war against the Soviet Union during which "unknown" western investors bought up much of the Soviet industry. A crime presented by official sources as a "terrorist attack" and used as an excuse to attack Iraq.)
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September 11

Initially the official designation of "terrorist attacks" made it difficult to discern a pattern. However if the destruction of the World Trade Centre, a segment of the Pentagon, four commercial aircraft and the loss of 2,993 lives is not considered as a "terrorist attack" but rather as a crime with specific objectives, there is a compelling logic to the pattern of destruction, not only of the buildings but of specific offices within each building.

If the attack on the Office of Naval Intelligence in the Pentagon was not random it is reasonable to assume that the planes that hit the World Trade Centre, and the bombs reported by various witnesses to have been set off inside the buildings 1, 6, 7, the basement of the Towers, the vault in the basement of the World Trade Centre were also deliberately targeted. Why? What was it that linked these targets? The destruction of the contents of the basement of the World Trade Centre - less than a billion in gold, but hundreds of billions of dollars of government securities? In addition why were specific brokers from the major government security brokerages in the Twin Towers eliminated? To create chaos in the government securities market? To create a situation wherein $240 billion dollars of covert securities could be electronically “cleared” without anyone asking questions? Which happened when the Federal Reserve declared an emergency and invoked its “emergency powers” that afternoon.

There were three major securities brokers in the World Trade Center: Cantor Fitzgerald, Eurobrokers and Garbon Inter Capital. On the morning of September 11, Flight 11 hit the North Tower at 8:46 right below the floors on which Cantor Fitzgerald was situated. Cantor Fitzgerald as the largest securities dealer in the US was probably the primary target. Shortly thereafter a massive explosion went off under the FBI offices in the North Tower on the 23rd floor, Garbon Inter Capital on the 25th floor, and in the basement of Tower 1. The explosion caused the 22nd through 25th floors above to collapse into an inferno. Fires were reported on the 22nd floor at 8:47. Shortly, thereafter, at 9:03, Flight 175 hit the South Tower right below the floors on which Euro Brokers was situated. In all three cases, the explosive, fiery destruction consumed the offices in the several floors above. At 9:37 Flight 77 hit the Pentagon, targeting one of the few offices that had been moved in the newly remodeled section of the Pentagon: the Office of Naval Intelligence, which had been investigating the financial transactions linked to the securities being managed by those security dealers in the World Trade Center that were targeted. 41% of the fatalities in the Twin Towers came from two companies that managed U.S. government securities: Cantor Fitzgerald and Eurobrokers. 31% of the 125 fatalities in the Pentagon were from the Naval Command Center that housed the Office of Naval Intelligence. 39 of 40 Office of Naval Intelligence employees died. In the vaults beneath the World Trade Center Towers, any certificates for bonds were destroyed.

Building 7 was evacuated somewhere between 9:00 and 9:30. Fires and explosions spontaneously began at multiple locations inside the building prior to the collapse of either Tower. This observation contradicts the official explanation that the fire started when objects from the collapsing towers caused the fires to ignite. The Building ultimately was destroyed in what many unofficial observers now believe was a controlled demolition. Building Seven housed several agencies critical to investigation of financial crimes.

In the midst of all this, Building 6 was destroyed by explosions from within. Building 6 was home to the U.S. Customs agency and the El Dorado Task force, which was responsible for coordinating all major money-laundering investigations in the U.S. In the immediate aftermath of September 11, these groups would be redirected to investigate terrorist financing.

The Office of Naval Intelligence in the Pentagon, which sustained a direct hit from an airliner that day, was without a doubt, a target pinpointed for destruction. The attacking aircraft went through intricate manoeuvres in order to hit the west side of the Pentagon, The flight path approach shows that the attacking aircraft passed almost directly over the White House, bypassing what should be considered a primary target for a "terrorist attack" instead of a supposedly empty section of the Pentagon. The planes that hit the South Tower also manoeuvered in the last moments to hit their exact target.

On the same day, (September 11) the Securities and Exchange Commission declared a national emergency and for the first time in U.S. history invoked its emergency powers under Securities Exchange Act Section 12(k) and eased regulatory restrictions for clearing and settling security trades for the next 15 days. These changes would allow an estimated $240 billion in covert government securities to be cleared upon maturity (September 12th) without the standard regulatory controls around identification of ownership.

While most media reports defer to the U.S. government contention that Osama Bin Laden was behind these attacks, foreign media provided reports suggesting that the “real power” behind Al Qaeda was unknown. As shall be seen, the financial power behind the attack is the same power that created these securities, and the same power as that which founded Al Qaeda.

The Background

In order to understand why the ongoing Federal investigations into the crimes funded by those securities needed to be ended or disrupted by destroying evidence in Buildings 6, 7 and 1, it is necessary to understand how the $240 billion in covert, and possibly illegal government funding, could have been created in September 1991 and also to know the background of 50 years of history of key financial organizations in the United States, where U.S. Intelligence became a key source of their off-balance sheet accounts.

The covert securities used to accomplish the original national security objective had ended up in the vaults of the brokers in the World Trade Centre, were destroyed on September 11, 2001, the day before they came due for settlement and clearing. Either a key group of senior National Security officials, who had participated in the victory of the economic cold war in 1991, considered the deaths and destruction as ‘collateral" damage to hide the existence of the covert activities or the destruction constituted a cover-up of continued lawlessness by a fraternity or brotherhood of businessmen and criminals that has remained in the shadows ever since.

The Origins of the World Trade Centre Attack

Most historians track the history of September 11th to 1998 when Osama Bin Laden declared a fatwa or jihad against the U.S., and the terrorist “Hamburg Group” led by Mohammed Atta reportedly “offered” it’s services to Al Qaeda. However, the history which defines the motives for the September 11 attacks goes much further back. The answers to the questions surrounding the cause of the WTC attack will be found in events during the presidency of George H.W. Bush and earlier. Insight into the activities of that period are cloaked by the Executive Order of George H.W. Bush’s son, President George W. Bush, who on November 1, 2001 issued Executive Order 13233. As a result public records which might have shed light on the activities of 1990 and 1991 remain shielded from public access. Consequently the reconstruction of events from the late 1980s and early 1990s is based on news reports, books and articles.

What the public record suggests is that with the beginning of the first Bush Presidency in 1989, George H.W. Bush initiated a programme of covert economic warfare to bring about the collapse of the Soviet Union. The name of this programme appears to be Project Hammer - a multi-billion dollar covert operation, whose investments remain shielded.

There is reason to believe that the plan was initially formulated by Reagan’s CIA Director, William Casey. Many of the programme operatives were probably engaged through official CIA and National Security channels. However, as a result of the experience gained by the Bush cabinet and its private sector counterparts during the secretive Iran-Contra and Ferdinand Marcos gold operations, the execution of that programme would be accompanied by a new assumption that the use of covert and illegal funding for a policy not approved by Congress would remain acceptable.

The Source of the Funds

Numerous sources have documented that at the end of World War II, the treasury of the Japanese Empire was discovered in the Philippines by Edward Lansdale a member of the staff of General Charles Willoughby, who was General MacArthur’s chief of Intelligence. Lansdale and Severino Garcia Diaz Santa Romana tortured Major Kojima Kashii, General Yamashita Tomoyuki’s driver, until he revealed the sites of the gold. Then known as the "Golden Lily Treasure", this mass of wealth had been accumulated by the Japanese over fifty years from the pillaging of Southeast Asia and China by its army and had been deposited in the Philippines due to the U.S. submarine blockade of Japan. Reports vary, but documents in the public domain suggest the recovered treasure was in excess of 280,000 metric tonnes of gold.

Lansdale briefed Assistant Secretary of War John J. McCloy about the findings, and a U.S. Cabinet-level decision was made to confiscate the gold and cover-up its discovery. The gold would be added to the Black Eagle Trust fund which took its name from the Nazi Black Eagle stamped on the gold bars confiscated from the Reich and was the original source of funding for the trust. Over the years, the significance of the Nazi gold would pale in comparison to the confiscated Japanese treasure. As the fund grew, it was distributed in private accounts across the globe in over 100 banks, and administered by General Earle Cocke.

Lansdale and Santa Romana were made responsible for recovery of the treasure. They fabricated a “Communist Revolution” by the Hukbalahak rebels in order to confiscate the land where much of the gold was buried, and proceeded to mine it.

The Yamashita gold would become the cornerstone of the Black Eagle Fund, from which many covert operations of the U.S. intelligence would be funded. Under international law the gold should have been either returned to the countries from which it was stolen (as was done with the Nazi gold), or should have been incorporated into the U.S. Treasury. The U.S. Government’s continued efforts to stifle news on this matter provides prima facie evidence that the confiscation of this gold was illegal.

The men responsible for initiating and executing the confiscation of Nazi and Japanese treasury gold represent the most senior Intelligence officers in the U.S. and Britain at the end of World War II, and the Cabinet of the President of the United States. The financial institutions represented by these individuals would become the major financial banks in the world, along with the Swiss-German banks where they hid their gold.

Lansdale’s operation in the Philippines gave birth to most of the common features of modern covert operations for the U.S.Intelligence and initiated a bond between the US intelligence organizations and the Israeli intelligence. He also set precedents for the Intelligence community to retain the services of organized crime on U.S. soil and to use drug running as a way of financing activities,

The covert operations funded by the Black Eagle Trust in the 1960s and 1970s became visible stains on the global image of the U.S. despite all efforts to keep them under cover. In an effort to clean house, President Jimmy Carter would order the retirement of over 800 covert operatives. Many of these operatives would move into private consulting and security firms and be employed as subcontractors for covert operations. Thus began a loose association of private operatives that would be referred to as “the Enterprise” in the years to come. George H.W. Bush, having been CIA Director, had many acquaintances in this group, and would work with them to restore their influence and control over U.S. foreign policy and the foreign investment opportunities it created for their benefit.

Meantime Ferdinand Marcos, the pro-U.S. dictator of the Philippines, continued to discover even more of the buried treasure. and had started to sell it on the market during the 1970s with the assistance of Adnan Khashoggi. US Intelligence operations had been siphoning off the gold for three decades. However in 1986 Vice President George Bush took over the gold from Marcos and the gold was removed to a series of banks, notably Citibank, Chase Manhattan, Hong Kong Shanghai Banking Corporation, UBS and Banker’s Trust, and held in a depository in Kloten Switzerland. What happened to the Marcos gold after it was confiscated by U.S. agents in 1986 has never been reported, but throughout the early 1990s, the world gold market would be befuddled by the mysterious appearance of thousands of tonnes of gold which appeared to suppress the price of gold.

In South east Asia operations were financed through Nugan Hand Bank in Australia which would be one of the many banks used for transferring the Marcos gold from the Philippines into covert operations. Frank Nugan’s family ran the primary supply shipping operation between the U.S. Navy base in the Philippines and Australia. Frank Nugan's business partner, Peter Abeles, and Henry Keswick, together with Canadian businessman Peter Munk, would link with Adnan Kashoggi, Sheikh Kamal and Edgar Bronfmann in a series of operations which ultimately would evolve into Barrick Gold.

In 1992, George H.W. Bush served on the Advisory Board of Barrick Gold. The Barrick operation would create billions of dollars of paper gold by creating ‘gold derivatives’. A major distribution channel for the sale of Barrick’s gold futures would be Enron. Enron would also become the vehicle by which oil and gas contracts from the former Soviet Union (vehicles for Soviet money-laundering) were processed. Barrick, which has no mining operations in Europe, used two refineries in Switzerland: MKS Finance S.A. and Argor-Heraeus S.A. – both on the Italian border near Milan, a few hours away from the gold depository in Zurich. The question that Barrick and other banks needed to avoid answering is: what gold was Barrick refining in Switzerland, as they have no mines in that region?

Barrick would become a quiet gold producing partner for a number of major banks, and its activities became subject to an FBI investigation into gold-price-fixing. The records on this investigation were kept in the FBI office on the 23rd floor of the North Tower which was destroyed by bomb blasts shortly before the Tower collapsed. The ultimate destination of the "Golden Lily Treasure", and the source of the ‘loaned’ gold that flooded the market for 10 years has never been officially explained.

The records of many of those transactions disappeared when Enron collapsed and the trading operation and all its records were taken over by UBS, another major recipient of Marcos gold. The FBI was reportedly conducting an investigation into those transactions, and the investigation files were kept on the 23rd floor of the North Tower of the WTC. A review of the personal accounts of September 11 now suggests that office was deliberately targeted with explosives prior to the collapse of the WTC.

Another key player in the Marcos gold was Banker’s Trust, which was taken over by Alex Brown & Sons, after Banker’s Trust floundered financially on its Russian loans in the mid 1990s. These Russian loans were facilitated by Enron, starting in August of 1993, and very possibly were part of the Project Hammer takeover of Soviet industry.

Amongst those brought into the picture by the involvement of Alex Brown was J. Carter Beese who was Executive Director of the CIA at the time of September 11. He was appointed by George H.W. Bush to the board of directors of the Overseas Private Investment Corporation in 1992. Since 1992, OPIC has provided more than $4.5 billion in finance and insurance to more than 140 projects in Russia. He was also Chairman of Riggs Bank and also President of Riggs Capital Partners. Riggs controlled the famous Riggs-Valmet consultants who set up the international financial apparatus for the Russian oligarchs and rogue KGB allowing them to steal the Soviet treasury and destroy the Russian economy. Carter Beese’s death was reported as a suicide in 2006.

It appears that in September 1991, George H.W. Bush and Alan Greenspan did indeed finance $240 billion in bonds in a buy-out of the Soviet Union as part of a broader programme to attack the economy of the Soviet Union. In addition President George H.W. Bush had initiated a number of related covert operations to take over certain sectors of the Soviet economy,

The covert business dealings with the Iranians and Israelis which originated with Kashoggi and Kimche in July 1980 in Hamburg under the October Surprise arrangement, would provide an opening to the Soviet KGB that would allow the U.S. to fund a coup against Gorbachev in 1991. It would grow into a larger covert operation over the years, and be overshadowed by the larger Iran-Contra operation. Members of Bush’s covert intelligence cadre sold weapons to Iran, an avowed enemy of the U.S., and illegally used the profits to continue funding anti-Communist rebels, the Contras, in Nicaragua.

The entire Iran-Contra operation almost fell apart in 1986 and became public when the Nicaraguan government shot down a U.S. plane carrying weapons to the Contra rebels However the Iran-Contra team continued to violate the law even while being investigated by Congress.

Emboldened by the lack of consequences for subverting the U.S. constitution and breaking international law during the Iran-Contra scandal, the Bush administration group known as “the Vulcans” planned a bigger drive to crush Soviet Russia.

The programme also seems to have lined the pockets of the individuals that executed this policy, at US taxpayer expense. This was done to the tune of the $240 billion dollars in covert and allegedly illegal bonds, which appear to have been replaced with Treasury notes backed by U.S. taxpayers in the aftermath of September 11.

The Vulcan’s Covert Economic War on the Soviet Union

In 1988, Riggs Bank, under the direction of Jonathan Bush and J Carter Beese, would purchase controlling interest in a Swiss company named Valmet. In early 1989, the new subsidiary of Riggs called Riggs-Valmet would initiate contact with a group of KGB officers and their front-men to start setting up an international network for moving money out of the former Soviet block countries.

In the first phase of the economic attack on the Soviet Union, George Bush authorized Leo Wanta and others to destabilize the ruble and facilitate the theft of the Soviet/Russian treasury. This would result in draining the Russian treasury of between 2,000 to 3,000 tonnes of gold bullion, ($35 billion at the time). This step would prevent a monetary defence of the ruble and thus destabilize the currency. The gold was ‘stolen’ in March of 1991, facilitated by Leo Wanta and signed off by Boris Yeltsin’s right hand man. The majority of the leaked reports from the CIA and FBI suggest the theft of the Russian treasury was a KGB and Communist party operation, but what those reports omitted was the extensive involvement of Boris Yeltsin, the U.S. CIA and the U.S. banking industry.

In November 1989 George H.W. Bush appears to have arranged for Alton G. Keel Jr, a minor player in the Iran-Contra scandal to go to work at Riggs Bank, which would become the controlling owner of a small Swiss bank operation known as Valmet. The Riggs-Valmet operation, would become the ‘consultants’ to the World Bank and to several KGB front operations run by future Russian oligarchs Khordokovsky, Konanykhine, Berezovsky and Abromovich. These soon-to-be Russian oligarchs had been set-up as front men by KGB Generals Aleksey (Alexei) Kondaurov; and Fillipp Bobkov, who previously reported to Victor Cherbrikov, who worked with Robert Maxwell, a British financial mogul, an Israeli secret service agent, and a representative of U.S. intelligence interests, who had been introduced to George Bush in 1976 by Senator Tower for the sole purpose of using Maxwell as an intermediary between Bush and the Soviet Intelligence. Maxwell assisted Cherbrikov in selling military weaponry to Iran and the Nicaraguan Contras during the course of the Iran Contra deals, and made hundreds of millions of dollars available to Cherbrikov’s Russian banks. These two would bring a previously unknown politician and construction foreman named Boris Yeltsin from the hinterlands of Russia to the forefront of Russian politics through providing 50% of Yeltsin’s campaign funding.

In the second phase, there were two major operations: the largest was coordinated by Alan Greenspan, Oliver North, and implemented by Leo Wanta. George Soros and a group of Bush appointees who began to destabilize the ruble. They are accused of fronting $240 billion in covert securities to support the various aspects of this plan.These bonds were created (in part or in whole) from a secretive Durham Trust, managed by ex-OSS/CIA officer, Colonel Russell Hermann. This war chest had been created with the Marcos gold.

Shortly before the attempted coup of 1991, Maxwell met Kruchkov on Maxwell’s private yacht. Shortly afterwards, Maxwell died mysteriously on his yacht while Senator Tower died in a plane crash under suspicious circumstances in April of 1991.

In the meantime, Riggs Bank was quickly solidifying banking relations with two of the old Iran-Contra scandal participants: Swiss bankers Bruce Rappaport, and Alfred Hartmann. Through this group George Soros opened a second front assault on the ruble. It is at this stage of the operation that three more groups would be brought into the plan by Rappaport and Hartmann: The Russian Mafiya, the Israeli Mossad, and the Rothschild family interests represented by Jacob Rothschild.

Soros and Rappaport would ensure that the Rothschild financial interests would be the silent backers for a number of the undisclosed deals. The Rothschild interests would also be seen on the board of directors of Barrick Gold.

In the fourth phase of the secret war, the Enterprise worked on several fronts to take over key energy industries. On the Caspian front of this economic war, James Giffen was sent to Kazakhstan to work with President Nazarbayev in various legal and illegal efforts to gain control of what was estimated to be the world’s largest untapped oil reserves - Kazak oil in the Caspian. The illegal flow of money from the various oil companies would reach a number of banks. These same oil interests would engage March Rich and the Israeli Eisenberg Group, owned by one of the Mossad’s key operatives, Shaul Eisenberg, to move the oil. (The Eisenberg Group would at some point own almost 50% of Zim Shipping, which mysteriously and inexplicably moved out of the World Trade Center a few weeks before the September 11 attacks.)

Like the other events linked with Project Hammer, the coup was all about the money. The coup began the dissolution of the Soviet Union and the beginning of the reign of Boris Yeltsin and his ‘family’ of Russian Mafiya Oligarchs, and President Nursultan Nazarbayev of Kazakhstan. In the final phase, a series of operatives assigned by President George H.W. Bush would begin the takeover of prized Russian and CIS industrial assets in oil, metals and defence. This was done by financing and managing the money-laundering for the Russian oligarchs through the Bank of New York, AEB and Riggs Bank.

A closer look at other activities leading up to these phases makes it clear that is was a U.S. orchestrated intelligence effort from the beginning. The economic war involved Gerald Corrigan of the NY Federal Reserve Bank, George Soros, an international currency speculator who was responsible for crashing the British pound a few years earlier, former Ambassador to Germany R. Mark Palmer, and Ronald Lauder-financier and heir to the Estee Lauder estate. Palmer and Lauder would lead a group of American investors in an Operation called the Central European Development Corporation, and combine forces with George Soros and the NM Rothschild Continuation Trust. This group ending up controlling Gazprom, the Russian natural gas giant, while the Riggs group ended up controlling Yukos, the oil giant. Ownership for both remains largely ‘hidden’ today, while its front men endure the hardships of the Russian wrath by spending time in prison.

Meanwhile, across the Caspian Sea, Bush had assigned a wide array of former Iran-Contra operatives to take a role in Azerbaijan. Initially, he sent in the covert operatives Richard Armitage and Richard Secord who worked with their old colleague from the Mossad, David Kimche, and their old arms running colleagues Adnan Kashoggi and Farhad Azima to hire, transport, and train several thousand Al Qaeda mercenaries to fight on behalf of the Azeri freedom fighters! Osama Bin Laden was reported to have been part of this mercenary force.

The September 11th Cover-up of the Black Eagle Trust and Project Hammer
Ten years later in 2001, these programmes had finally come back to haunt the U.S. policy makers. Most, if not all of these programmes appear to have stepped outside of the boundaries of the law. As a result, investigative agencies from Britain, Switzerland, Russia, Kazakhstan and the Philippines were putting pressure on Congress and the U.S. Department of Justice to open up the accounts in the banks used to finance these covert activities. Pressure was being put on the Swiss banking cartel to open its bullion records to public scrutiny. Full disclosure by these banks during an investigation would have resulted in a major exposure of U.S. Government complicity in some of the greatest financial frauds of the 1980s and early 1990s as well as 50 years of gold bullion theft by numerous U.S. and British government agencies. Moreover, investigation into these accounts would disclose a National Security secret known as the Black Eagle fund, and virtually every covert operation since World War II. Bringing an end to these investigations and preventing this disclosure was the sole objective for the destruction of the WTC and Pentagon.

These investigative and legal pressures began to accumulate in 1997, and in February 1998, Osama Bin Laden declared his fatwa, and Atta started planning the September 11 attacks.

With the bonds out in the market, they had sat for ten years, like a ticking time bomb. At some point, they had to be settled - or cashed in, on September 12, 2001. The two firms in the U.S. most likely to be handling them would be Cantor Fitzgerald and Eurobrokers – the two largest government securities firms in the U.S. The federal agency mostly involved in investigating those transactions was the Office of Naval Intelligence. On September 11 those same three organizations: the two largest government securities brokers and the Office of Naval Intelligence in the US took near direct hits.

What happened inside the buildings of the World Trade on September 11 is difficult, but not impossible to discern. The government has put a seal on the testimony gathered by the investigating 911 Commission, and instructed government employees to not speak on the matter or suffer severe penalties, but there are a number of personal testimonies posted on the internet as to what happened in those buildings that day. Careful reconstruction from those testimonies indicates the deliberate destruction of evidence not only by a targeted assault on the buildings, but also by targeted fires and explosions. In the event that either the hijacking failed, or the buildings were not brought down, the evidence would be destroyed by fires.

Even more revealing would be the actions of the Federal Reserve Bank and the Securities and Exchange Commission on that day, and in the immediate aftermath. As one of many coincidences on September 11, the Federal Reserve Bank was operating its information system from its remote back-up site rather than it’s downtown headquarters. The SEC and Federal Reserve system remained unfazed by the attack on September 11. All of their systems continued to operate. The two major security trading firms had their trade data backed up on remote systems. Nevertheless, the Commission for the first time invoked its emergency powers under Securities Exchange Act Section 12(k) and issued several orders to ease certain regulatory restrictions temporarily.

On the first day of the crisis, the SEC lifted “Rule 15c3-3 -Customer Protection--Reserves and Custody of Securities,” which set trading rules for the certain processes. Simply GSCC was allowed to substitute securities for the physical securities destroyed during the attack.

Subsequent to that ruling, the GSCC issued another memo expanding blind broker settlements. A “blind broker” is a mechanism for inter-dealer transactions that maintains the anonymity of both parties to the trade. The broker serves as the agent to the principals' transactions.

Thus the Federal Reserve and its GSCC had created a settlement environment totally void of controls and reporting – where it could substitute valid, new government securities for the mature, illegal securities, and not have to record where the bad securities came from, or where the new securities went – all because the paper for the primary brokers for US securities had been eliminated.

This act alone, however was inadequate to resolve the problem, because the Federal Reserve did not have enough “takers” of the new 10 year notes. Rather than simply having to match buy and sell orders, which was the essence of resolving the “fail” problem, it appears the Fed was doing more than just matching and balancing – it was pushing new notes on the market with a special auction.

If the Federal Reserve had to cover-up the clearance of $240 Billion in covert securities, they could not let the volume of capital shrink by that much in the time of a monetary crisis. They would have had to push excess liquidity into the market, and then phase it out for a soft landing, which is exactly what appears to have happened. In about two months, the money supply was back to where it was prior to 9/11.

It was the rapid rotation of the securities settlement fails in the aftermath of September 11th that appears to have allowed the Bank of New York and the Federal Reserve to engage in a securities refinancing that resulted in the American taxpayer refinancing the $240 billion originally used for the Great Ruble Scam.

The reports published by the Federal Reserve argue that the Federal Reserve’s actions increasing the monetary supply by over $300 billion were justified to overcome operational difficulties in the financial sector.

What appears to be the case is that the Federal Reserve imbalances reported on three consecutive days in the aftermath were largely concentrated at the Bank of New York, which is reported to represent over 90% of the imbalance, suggesting the Bank had been the recipient of massive fund transfers, and unable to send out transfers.This supposedly was due to major communication and system failures.In fact, none of the Bank of New York's systems failed or went non-operational.

The Wall Street Journal reported:

"There is every reason to believe activities in the Bank of New York in the aftermath of September 11th are worthy of suspicion..... At one point during the week after September 11, the Bank of New York publicly reported to be overdue on $100 billion in payments.”

It suggests that certain key unknown figures in the Federal Reserve may have been in collusion with key unknown figures at the Bank of New York to create a situation where $240 billion in off balance sheet securities created in 1991 as part of an official covert operation to overthrow the Soviet Union, could be cleared without publicly acknowledging their existence.These securities, originally managed by Cantor Fitzgerald, were cleared and settled in the aftermath of September 11th through the Bank of New York. The $100 billion account balance bubble reported by the Wall Street Journal as being experienced by the Bank of New York was the tip of a three-day operation, when these securities were moved from off-balance-sheet to the balance sheet.

The above gives an idea of the intricate activities both to perpetrate and then to cover the crime, which was then used under its "terrorist attack" label as an excuse for the attack on Iraq.

Re-Post​

They don't talk about it on TV anymore, but someone tried to make money with unusual stock trades right before the terrorist attacks of September 11. Who knew to bet that United Airlines would lose money?


Suppressed Details of Criminal Insider Trading Lead Directly into the CIAs Highest Ranks
CIA Executive Director Buzzy Krongard managed firm that handled PUT options on United Airline Stock
by Michael C. Ruppert

FTW - October 9, 2001 Although uniformly ignored by the mainstream U.S. media, there is abundant and clear evidence that a number of transactions in financial markets indicated specific (criminal) foreknowledge of the September 11 attacks on the World Trade Center and the Pentagon. In the case of at least one of these trades -- which has left a $2.5 million prize unclaimed -- the firm used to place the put options on United Airlines stock was, until 1998, managed by the man who is now in the number three Executive Director position at the Central Intelligence Agency.

Until 1997 A.B. Buzzy Krongard had been Chairman of the investment bank A.B. Brown. A.B. Brown was acquired by Bankers Trust in 1997. Krongard then became, as part of the merger, Vice Chairman of Bankers Trust-AB Brown, one of 20 major U.S. banks named by Senator Carl Levin this year as being connected to money laundering. Krongards last position at Bankers Trust (BT) was to oversee private client relations. In this capacity he had direct hands-on relations with some of the wealthiest people in the world in a kind of specialized banking operation that has been identified by the U.S. Senate and other investigators as being closely connected to the laundering of drug money.

Krongard joined the CIA in 1998 as counsel to CIA Director George Tenet. He was promoted to CIA Executive Director by President Bush in March of this year. BT was acquired by Deutsche Bank in 1999. The combined firm is the single largest bank in Europe. And, as we shall see, Deutsche Bank played several key roles in events connected to the September 11 attacks.
THE SCOPE OF KNOWN INSIDER TRADING

Before looking further into these relationships it is necessary to look at the insider trading information that is being ignored by Reuters, The New York Times and other mass media. It is well documented that the CIA has long monitored such trades in real time as potential warnings of terrorist attacks and other economic moves contrary to U.S. interests. Previous stories in FTW have specifically highlighted the use of Promis software to monitor such trades.

It is necessary to understand only two key financial terms to understand the significance of these trades, selling short and put options.

Selling Short is the borrowing of stock, selling it at current market prices, but not being required to actually produce the stock for some time. If the stock falls precipitously after the short contract is entered, the seller can then fulfill the contract by buying the stock after the price has fallen and complete the contract at the pre-crash price. These contracts often have a window of as long as four months.

Put Options, are contracts giving the buyer the option to sell stocks at a later date. Purchased at nominal prices of, for example, $1.00 per share, they are sold in blocks of 100 shares. If exercised, they give the holder the option of selling selected stocks at a future date at a price set when the contract is issued. Thus, for an investment of $10,000 it might be possible to tie up 10,000 shares of United or American Airlines at $100 per share, and the seller of the option is then obligated to buy them if the option is executed. If the stock has fallen to $50 when the contract matures, the holder of the option can purchase the shares for $50 and immediately sell them for $100 regardless of where the market then stands. A call option is the reverse of a put option, which is, in effect, a derivatives bet that the stock price will go up.

A September 21 story by the Israeli Herzliyya International Policy Institute for Counterterrorism, entitled Black Tuesday: The Worlds Largest Insider Trading Scam? documented the following trades connected to the September 11 attacks:

- Between September 6 and 7, the Chicago Board Options Exchange saw purchases of 4,744 put options on United Airlines, but only 396 call options Assuming that 4,000 of the options were bought by people with advance knowledge of the imminent attacks, these insiders would have profited by almost $5 million.

- On September 10, 4,516 put options on American Airlines were bought on the Chicago exchange, compared to only 748 calls. Again, there was no news at that point to justify this imbalance; Again, assuming that 4,000 of these options trades represent insiders, they would represent a gain of about $4 million.

- [The levels of put options purchased above were more than six times higher than normal.]

- No similar trading in other airlines occurred on the Chicago exchange in the days immediately preceding Black Tuesday.

- Morgan Stanley Dean Witter & Co., which occupied 22 floors of the World Trade Center, saw 2,157 of its October $45 put options bought in the three trading days before Black Tuesday; this compares to an average of 27 contracts per day before September 6. Morgan Stanleys share price fell from $48.90 to $42.50 in the aftermath of the attacks. Assuming that 2,000 of these options contracts were bought based upon knowledge of the approaching attacks, their purchasers could have profited by at least $1.2 million. Merrill Lynch & Co., with headquarters near the Twin Towers, saw 12,215 October $45 put options bought in the four trading days before the attacks; the previous average volume in those shares had been 252 contracts per day [a 1200% increase!]. When trading resumed, Merrills shares fell from $46.88 to $41.50; assuming that 11,000 option contracts were bought by insiders, their profit would have been about $5.5 million.

- European regulators are examining trades in Germanys Munich Re, Switzerlands Swiss Re, and AXA of France, all major reinsurers with exposure to the Black Tuesday disaster. [FTW Note: AXA also owns more than 25% of American Airlines stock making the attacks a double whammy for them.]

On September 29, 2001 in a vital story that has gone unnoticed by the major media the San Francisco Chronicle reported, Investors have yet to collect more than $2.5 million in profits they made trading options in the stock of United Airlines before the Sept. 11, terrorist attacks, according to a source familiar with the trades and market data.
The uncollected money raises suspicions that the investors whose identities and nationalities have not been made public had advance knowledge of the strikes. They dont dare show up now. The suspension of trading for four days after the attacks made it impossible to cash-out quickly and claim the prize before investigators started looking.

October series options for UAL Corp. were purchased in highly unusual volumes three trading days before the terrorist attacks for a total outlay of $2,070; investors bought the option contracts, each representing 100 shares, for 90 cents each. [This represents 230,000 shares]. Those options are now selling at more than $12 each. There are still 2,313 so-called put options outstanding [valued at $2.77 million and representing 231,300 shares] according to the Options Clearinghouse Corp.

The source familiar with the United trades identified Deutsche Bank Alex. Brown, the American investment banking arm of German giant Deutsche Bank, as the investment bank used to purchase at least some of these options This was the operation managed by Krongard until as recently as 1998.

As reported in other news stories, Deutsche Bank was also the hub of insider trading activity connected to Munich Re. just before the attacks.

CIA, THE BANKS AND THE BROKERS

Understanding the interrelationships between CIA and the banking and brokerage world is critical to grasping the already frightening implications of the above revelations. Lets look at the history of CIA, Wall Street and the big banks by looking at some of the key players in CIAs history.

Clark Clifford The National Security Act of 1947 was written by Clark Clifford, a Democratic Party powerhouse, former Secretary of Defense, and one-time advisor to President Harry Truman. In the 1980s, as Chairman of First American Bancshares, Clifford was instrumental in getting the corrupt CIA drug bank BCCI a license to operate on American shores. His profession: Wall Street lawyer and banker.

John Foster and Allen Dulles These two brothers designed the CIA for Clifford. Both were active in intelligence operations during WW II. Allen Dulles was the U.S. Ambassador to Switzerland where he met frequently with Nazi leaders and looked after U.S. investments in Germany. John Foster went on to become Secretary of State under Dwight Eisenhower and Allen went on to serve as CIA Director under Eisenhower and was later fired by JFK. Their professions: partners in the most powerful - to this day - Wall Street law firm of Sullivan, Cromwell.

Bill Casey Ronald Reagans CIA Director and OSS veteran who served as chief wrangler during the Iran-Contra years was, under President Richard Nixon, Chairman of the Securities and Exchange Commission. His profession: Wall Street lawyer and stockbroker.

David Doherty - The current Vice President of the New York Stock Exchange for enforcement is the retired General Counsel of the Central Intelligence Agency.

George Herbert Walker Bush President from 1989 to January 1993, also served as CIA Director for 13 months from 1976-7. He is now a paid consultant to the Carlyle Group, the 11th largest defense contractor in the nation, which also shares joint investments with the bin Laden family.

A.B. Buzzy Krongard The current Executive Director of the Central Intelligence Agency is the former Chairman of the investment bank A.B. Brown and former Vice Chairman of Bankers Trust.

John Deutch - This retired CIA Director from the Clinton Administration currently sits on the board at Citigroup, the nations second largest bank, which has been repeatedly and overtly involved in the documented laundering of drug money. This includes Citigroups 2001 purchase of a Mexican bank known to launder drug money, Banamex.

Nora Slatkin This retired CIA Executive Director also sits on Citibanks board.

Maurice Hank Greenburg The CEO of AIG insurance, manager of the third largest capital investment pool in the world, was floated as a possible CIA Director in 1995. FTW exposed Greenbergs and AIGs long connection to CIA drug trafficking and covert operations in a two-part series that was interrupted just prior to the attacks of September 11. AIGs stock has bounced back remarkably well since the attacks. To read that story, please go to http://www.copvcia.com/stories/part_2.html.

One wonders how much damning evidence is necessary to respond to what is now irrefutable proof that CIA knew about the attacks and did not stop them. Whatever our government is doing, whatever the CIA is doing, it is clearly NOT in the interests of the American people, especially those who died on September 11.

[ COPYRIGHT, 2001, Michael C. Ruppert and FTW Publications, www.copvcia.com. All Rights Reserved. May be reprinted or distributed for non-profit purposes only.]

http://www.hereinreality.com/insidertrading.html

Who Controls Finance ?

Who Controls Finance ?​

The world of high finance is a Jewish world. War and revolution is interwoven with International Jewish Finance. These purveyors of disturbance have no political affiliations. National loyalty (if it exists for them ) is subordinated to the business of international finance.


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Some of the main Jewish Banking Houses are :


Rothschilds

August Belmont & Co.

J. & W. Seligman & Co.

Kuhn Loeb & Co. (Warburg)

Lehman Brothers

Goldman, Sachs & Co.



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The Jewish Encyclopaedia claims that the great fortune accumulated by the Rothschilds was based on the "businesslike" method of fraud, i.e. Mayer Rothschild embezzled the sum of $3,000,000 which his employer had left in his trust when he was forced to flee to Denmark.

Mayer Amschel Bauer was born in the mid-eighteenth century and, worked for Prince William of Hanau as court factor and agent for the Prince's trade in mercenaries. He then changed his name to Rothschild and established his five sons in European cities. Anslem in Frankfurt, Solomon in Vienna, Nathan in London, Charles in Naples and James in Paris.


"They saw neither peace nor war, neither slogans or manifestos, nor orders of the day, neither death nor glory. They saw none of the things that blinded the world. They saw only stepping stones. Prince William had been one. Napoleon would be the next."

(Quote from "The Rothschilds" by Frederic Morton.)

For the United States Jewish high finance first arrived with the Rothschilds. The first twenty million dollars they speculated with was the money paid for Hessian troops to fight against the American colonies.

That first connection was indirect and in fact the Rothschild sons never established themselves in the newly-founded United States but always acted through agents.

Their fortune was based, as are many other Jewish fortunes, on war.

Much depended on the outcome of the Battle of Waterloo. Having learned through his own news grapevine that Napoleon had been defeated, Nathan Rothschild publicly sold his British Consuls on the floor of the London Stock Exchange. As he had anticipated, his fraudulent action caused a panic and a disastrous drop in price. He, meantime, through his agents, bought all the Consuls back at rock bottom price and increased his fortune.

The French Government, now under Louis XVIII, borrowed from the banks, Ouvrard and Baring Brothers, ignoring the Rothschilds .

In 1818 the French government bonds began to fall. Using the same method that Nathan Rothschild had pulled off with British Consuls, the Rothschild agents had bought in huge quantities of the French government bonds causing them to rise in value then dumped them on the open market in the main commercial centres in Europe causing a panic, while the Rothschilds waited in the wings. The king was forced to call them in and in this way they obtained financial control of France.

The United States was to be their next target. The first documented evidence of Rothschild involvement in the financial affairs of the United States came in the late 1820s and early 1830s when their agent, Nicholas Biddie, fought to defeat Andrew Jackson's move to curtail international bankers. The Rothschilds lost the first round. In 1832 President Jackson vetoed the move to renew the charter of the "Bank of the United States" (a central bank controlled by the international bankers) and in 1836 the bank went out of business.

In the years following Independence, a close business relationship had developed between the cotton-growing aristocracy in the South and the cotton manufacturers in England. The European bankers decided that this business was America's Achilles Heel.

History reveals that the Rothschilds were heavily involved in financing both sides in the Civil War. Lincoln put a damper on their activities when in 1862 he refused to pay the exorbitant rates of interest demanded by the Rothschilds and issued constitutionally authorised interest-free United States notes. Lincoln's assassination in 1865 probably stemmed from this action.

After Lincoln's death, Otto von Bismark made the following statement:


"The death of Lincoln was a disaster for Christendom. There was no man in the United States great enough to wear his boots. I fear that foreign bankers with their craftiness and torturous tricks will entirely control the exuberant riches of America, and use it systematically to corrupt modern civilisation. They will not hesitate to plunge the whole of Christendom into wars and chaos in order that the earth should become their inheritance."
Having founded their fortune on fraud, the Rothschilds sank from the limelight, but remain the hidden hand behind many fronts.


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Many of the international Jewish financiers have had their beginnings in Frankfurt, among these are the Schiffs and the Speyers.

The firm of Kuhn, Loeb and Co., was founded by Jacob Schiff whose father was one of the Rothschild brokers. One of Jacob Schiff's associates, Otto Kahn, was associated with the Speyers, (who came to power in England during the reign of Edward VII). Another associate, Felix Warburg, married into Jacob Schiff's family and became some of the most influential members of America's diplomatic representatives.

The main agents in the United States between this period and 1914 were Kuhn, Loeb and Co. and J.P. Morgan Co.

Within twenty years Kuhn Loeb whose new partner, had important financial connections in Europe (i.e. Rothschilds and M.M. Warburg,) had provided the capital for John D. Rockefeller to expand Standard Oil and also financed the activities of Edward Harriman (Railroads) and Andrew Carnegie (Steel).

The next step was the creation of the privately owned Federal Reserve System.

It is known that Jacob Schiff gave material assistance to Japan in the 1905 war with Russia.

Jewry emerged from the 1914-1918 war more strongly entrenched, as it did from the Second World War. Its position enhanced by the sentimental euphoria of the Holocaust myth.

Following the Second World War the creation of the World Bank, Director: Robert Zoellick who replaced Paul Wolfowitz, (ex US Deputy Defence Secretary and architect of the Iraq war) and the International Monetary Fund served to tighten the stranglehold.

Like the tentacles of a giant octopus, flank movements reached out to other countries - notably to Central and South America.

The financial assistance offered to Mexico was given by Jewish groups. The political upheavals and the financial arrangements in the tiny but strategically placed countries of Central America all came from the same source. (An aspect dealt with more fully under the heading "South America" elsewhere on this site.)

There could be the promise of a glimmer of light at the end of the tunnel for South America.

In the closing weeks of 2007 a region in revolt against the economics of corporate globalisation issued its most unified declaration of independence to date.

On December 9th standing before the flags of their countries the Presidents of Argentine, Bolivia, Brazil, Ecuador, Paraguay and Venezuela along with the representative from Uruguay gathered in Buenos Aires and signed the founding charter of the Banco del Sur or the Bank of the South.

The Bank of the South will allow the participating governments to use a percentage of their collective currency reserves to strengthen Latin America's economy and promote cooperative development. It plans lending as early as 2008 with about 7 billion dollars in capital.

By itself the Bank represents a serious challenge to US dominated institutions such as the International Monetary Fund, the World Bank and the Inter-American Bank (IDB) as part of a larger trend it signals a major break from the policies of "Free Trade" neo-liberalism that dominated in the region through the eighties and nineties.

The bankers of the south are keenly aware of the significance of this break. In the words of the Venezuelan President, Hugo Chavez, "Bank is aimed at freeing us from the chains of dependance and under-development".

President Chavez who regularly clashes with the Bush administration, took over ExxonMobil and ConocoPhillips' stakes in multi-billion dollar heavy oil projects in Venezuela's oil region last June.

A move that could not be allowed to go without a counter attack. ExxonMobil Corporation which last week (January 2008) posted the largest ever year's profits by a US company said it had received court orders in Britain, the Netherlands and the Netherlands Antilles each freezing up to $12 billion in assets of the Venezuelan oil firm PDVSA as it fights for compensation for operations lost to President Hugo Chavez's nationalisation drive.

The move is the boldest challenge yet by international oil companies against any governments around the world that have moved to increase their hold on natural resources.

On February 10 in response President Chavez threatened to stop the supply of oil to the United States.


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Russia's "Oligarchs":

Fraud or deception of some kind has been the basis for most modern fortunes. The collapse of the Soviet State saw the rise of numerous tycoons who acquired state enterprises when these were sold off and vouchers issued to the population in lieu of cash or shares. Buying the virtually worthless vouchers, gave control of vast riches.

A bigger scandal was the loans for shares scheme of 1995 when Russia's prime industrial assets were sold off to the "oligarchs" in exchange for loans to the government.

Boris Berezovsky bought 51 per cent of the Sibneft oil company for $100 million that two years later was valued at $5 billion. (now $12.5 billion)

Mikhail Khodorkovsky paid $309 million for 78 per cent of Yukos oil (worth in 2003 $30 billion) the world's fourth largest oil producer after ExxonMobil, Shell and BP.

Boris Beresovsky formed the LogoVAZ car dealership and ended up worth $3 billion owning ORT television, the Izvestiyg newspaper and Sibneft oil Company. He also controlled Aeroflot and had shares in LUKoil.

His close business partner Roman Abramovich set up a co-operative making toys and moved into oil trading in Omsk. His other interests were Russian Aluminium (Rusal) the world's second largest producer, the Gaz car company, the Transneft Oil company and a minority stake in Aeroflot.

Vladimir Gusinsky branched out into banking and the Media-Most group which included NTV, Moscow Echo radio, Itogi magazine and the Segodnya newspaper.

Mikhail Friedman is head of Russia's largest private bank. Alfa Bank. His other interests include TNK oil company, which recently linked up with BP.

As is apparent every one of these new billionaires is Jewish. None of them previously owned more than a few thousand dollars. How did they manage to put up the money to buy these vastly under-priced assets which gave them virtual control of the Press, oil and minerals?

Putin's attack on these new-rich oligarchs for tax evasion and fraud can certainly be heralded as a brave move. He is the first national leader to attempt to dislodge the Jewish control, but time alone will tell whether this is genuine.

What is it exactly?
The obvious outcome of shrinking horizons?
An effort to uplift mankind?
or
Something malevolent? Clandestine? Surreptitious?​

Ruthless in its use of the least attractive human characteristics to gain its ends?​

What follows is an attempt to show when the concept of a "New World Order" first made its appearance and to trace its development. Hopefully this may supply an answer to the above questions.

Part 1 of 11

The Beginning​

The Freemasons

The earliest challenge to the Old Order in Europe came with the Reformation. This upheaval in society brought with it a number of new concepts and, probably, the most far-reaching was the removal of the necessity for "redemption". No longer was mankind weighed down by the thought that transgression would bring eternal damnation.

With this release came a relaxation in certain moral tenets. Notably, usury was no longer considered immoral.

From the middle of the seventeenth century various societies appeared in many countries, often under the highest patronage. Amongst such associations was the international brotherhood of Freemasons, with its deliberately syncretic rituals and decor (Solomonic temple, signs and symbols) that made it cosmopolitan and religiously neutral - an ideal reflection of the "Enlightenment", which Kant described as "liberation from self-imposed tutelage".

It was introduced apparently from England or Scotland into Europe in the 1720s and in a half century it spread widely. Later it was to be the object of much calumny with the accusation that it had revolutionary and subversive aims. True or not it is easy to believe that masonic lodges helped in the publicity and discussion of ideas and thus contributed to the breaking up of tradition and convention.

One interesting result of this was an increasing Jewish emancipation.

Freemasonry played an important part in the American Revolution. It was found on both sides of the coming war between the colonists and the Crown and, although there is no clear evidence of collusion amongst masons from opposing camps, the fact that the British made some extraordinary military errors does arouse suspicions.

Cagliastro one of the major players in the "Necklace Conspiracy" in the build-up to the French Revolution was a Freemason.

As the attacks on the ruling class throughout Europe accelerated there was much talk of a Jewish/Masonic conspiracy behind all the revolutions and civil wars. An idea that continues to-day.

The Illuminati

This secret society founded in 1776 by Adam Weishaupt expressed for the first time the aim of destroying the existing order of society and replacing it with a New World Order.

Part 2 of 11

Step-by-Step to Federal Reserve ​

As the establishment of a Central Bank in any country has been a crucial step and one about which much is written and debated, the following information about the establishment of the Federal Reserve Bank in the United States should be informative.

The first Bank of the United States was chartered by Congress in 1791 for twenty years with a capital stock of $10,000,000, of which $2,000,000 was to be in gold, twenty per cent of the stock was to be held by the government and the remaining eighty per cent by private individuals.

Although members of Congress subscribed for about one-third of the stock, already there were conspiracy theories that the Bank of the United States was secretly in the hands of foreigners, especially the Bank of England

Thomas Jefferson wrote:

"...the central bank is an institution of the most deadly hostility existing against the principles and form of our constitution..."

The large number of state-chartered private banks, nearly 250 of them, soon led to a position where the bank notes in circulation were far in excess of the amount of gold or silver redeemable. As a result the second Bank of the United States was chartered in April 1816 for a period of twenty years with a larger capital stock of $35,000,000 and once again the government held only twenty per cent.

In 1832, during the re-election year of President Andrew Jackson, the president of the bank attempted to get the re-chartering done four years earlier than it was due. Jackson, however, saw the bank as a British conspiracy to control American financial markets and did not allow an election year to cloud his judgement. He vetoed the re-chartering and then withdrew all the government's deposits.

In 1836 a speculative bubble developed in American land prices and Jackson tried to deflate it by passing the Specie Circular, which demanded that all payments for federal land be paid for in either gold or silver. It was believed that this resulted in the 1837 crash in land prices. However, research in the 1960s put forward the theory that the land price bubble was independent of the Bank of United States' closure and that the real culprit was the soaring imports of Mexican silver. When this supply dried up in 1837, the crash occurred.

The speculative bubble attracted the interest of the Rothschilds, and a representative, August Belmont, was sent over from Europe. He soon bought up American government stocks and wormed his way into the White House, eventually becoming Andrew Jackson's financial adviser.

The publication "The Rothschilds - the financial rulers of nations" details a secret meeting in London in 1857 at which the international banking syndicate decided to cause a civil war for the purpose of forcing the creation of yet another Central Bank.

The American Civil War started on April 12th, 1861, four years after the meeting of the Rothschilds in London. President Abraham Lincoln believed that that there were conspiratorial forces behind the south.

"Combinations too powerful to be suppressed by the ordinary machinery of peacetime government had assumed control of various southern states."
He then, in 1862 issued the famous "greenbacks".

The Rothschild family were accused of making another attempt to force the creation of a privately-owned central bank in America in 1907. Acting as their agent in this conspiracy theory was the American banker, J. P. Morgan.

Morgan returned to the United States after receiving instructions in Europe to precipitate a banking crisis. He started rumours that the Knickerbocker Bank in New York was insolvent. Such was his personal reputation in Wall Street that other investors believed him and there was a run on the bank, followed by similar runs on others.

The panic of 1907 raised serious doubts about the trustworthiness of state-chartered banks. Once again the call for a central bank emerged. Morgan's activities were criticised, but the President of Princeton University, Woodrow Wilson, came to his defence, For a future President of the United States, he made a curious comment about J. P. Morgan,

..."all this trouble could be averted if he appointed a committee of six or seven public-spirited men like J. P. Morgan to handle the affairs of our country..."

Considering that Morgan initiated the panic, is it possible to believe that he exposed the insolvency of the Knickerbocker Bank out of a spirit of public concern or out of competitive financial greed?

The creation of the Federal Reserve, America's Central Bank, was shrouded in secrecy right from the start. The individual senator who was selected by the bankers to introduce the legislation was Nelson Aldrich, the maternal grandfather of Nelson and David Rockefeller. He was appointed head of a national monetary commission and spent two years touring the great banking houses of Europe, learning the secrets of operating a central bank.

In November 1910, he returned to the United States and boarded a train in Hoboken, New Jersey. Fellow passengers on board the train were:

Piatt Andrew, assistant Secretary of the Treasury;

Frank Vanderlip, president of Kuhn-Loeb's National City Bank of New York;

Paul Warburg. partner in Kuhn-Loeb & Co.,;

Henry Davidson, senior partner of J. P. Morgan;

Benjamin Strong, president of Morgan's Bankers' Trust Co.;

Charles Norton, president of Morgan's First National Bank of New York.

It is worth mentioning that on J. P. Morgan's death it was found that he actually owned only 19 percent of J. P. Morgan & Co.

It is suggested that the secrecy surrounding this meeting probably stemmed from the desire to keep the public in ignorance of the involvement of J. P. Morgan, who had after all been responsible for the panic of 1907.

The legislation written as it was by bankers, still had to go through Congress. Its passage through the house and the Senate would be in vain if the incumbent President would be willing to veto the bill. Unfortunately for the J. P. Morgan secret group, such a President was in office at the time, William Howard Taft. He had made it clear that he would veto any such bill if it were presented to him to sign.

The campaign against Taft was three-fold. The secret group tried to prevent him from gaining the Republican nomination by supporting ex-President Teddy Roosevelt. When this failed, they supported the Democratic candidate, Woodrow Wilson.

When it was realised that Wilson would not get enough votes to defeat Taft, the group urged Teddy Roosevelt to run against both Taft and Woodrow Wilson as an independent. They hoped that Roosevelt would draw Republican votes away from Taft without influencing Wilson's figures. The ploy worked. Wilson won 45 per cent of the vote, and Roosevelt beat Taft into third place.

With Woodrow Wilson in the White House the Federal Reserve Bill was duly signed.

However the so-called "Aldrich Plan" failed to pass the House of Representatives. The idea that bankers would control the Federal Reserve found great opposition within the Democratic Party. The plan had to be adjusted to allow private ownership but public control. The president would appoint officials on to the Federal Reserve Board. Control therefore of the nation's finances would come, not through the central bank, but through influencing the chairman,( at this moment Ben Bernanke,) and the publicly appointed officials.

Part 3 of 11

"Colonel" Edward Mandell House​

The "colonel" was no military title but an honorary one in the Texas militia given in return for help in supporting the Texas Governor, James S. Hogg.

Despite the lack of genuine military rank, House was well connected with the financial giants of Wall Street and Europe. His father had been an agent for the Rothschild's London branch. He was the "guardian angel" for the Federal Reserve Bill, and acted as an agent between the J. P. Morgan group and Woodrow Wilson. His influence over Wilson was profound and his influence over the bankers was more so. His ideas impressed the Rockefellers , the Schiffs, the Warburgs and the Kuhns. He was once described by Jacob Schiff as "the Moses to their Aarons". His disciples would be responsible for the creation of the United Nations.

Whilst Woodrow Wilson was celebrating his election as President, an anonymous book, entitled "Philip Dru: Administrator", attracted his attention. The book was full of political, financial and economic policies, including the formation of the League of Nations, which he later adopted as his own.

Published in 1912, and set in 1925, it described the actions of a West Point graduate who led a coup-d'etat against an oppressive American government by gaining control of both the Republican and Democratic parties and using them to create a Socialist One-World Government.

The anonymous author of the book proved to be none other than Wilson's mentor and closest adviser, the ubiquitous "Colonel" Mandell House.

When Alfred Milner took over the control of the Round Table group (see under "Secret Societies"), he sought out Anglophile Americans such as George Louis Beer (?) who would soon be involved in the creation of an American version of the Round Table totally independent of the Milner group. Its influence would eventually dwarf that of its British counterpart and would be linked with other secret groups such as the Bilderberg and the Trilateral Commission.

"Colonel" House was credited with its actual creation. Together with Supreme Court Justice Felix Frankfurter (?), House went to his protege, Woodrow Wilson, with the idea of setting up an intelligence agency for foreign affairs. This would ultimately be known as the "Inquiry".(Please refer to Secret Societies in Part 5 of 11)

Part 4 of 11

The World Bank and the International
Monetary Fund​

Against the background of increasing corporate control there seems little that governments can do, even though there are international organisations which, presumably, were designed to deal with these issues.

The International Monetary Fund was established at Bretton Woods, New Hampshire, in 1944 against a world economic context of exchange rates and capital controls. For over twenty-five years capital controls continued to be lifted until the exchange-rate system collapsed completely in 1971.

Faced with a dangerous unevenness in world trade, it was the world's commercial banks that sought to assuage the continuing uncertainty, and the consequential surge in lending led to the currency crisis of 1982.


Economic de-regulation continued during the 1980s while the international lending crisis worsened. Against a background of continuing uncertainty the glut of financial instruments that had developed changed the face of banking probably for ever.

The big problem came down to the Mexican banking crisis of 1994. The government had borrowed too much and when the currency crashed it had no recourse but to seek help from the IMF and the US Treasury. Mexico issued "tesobonos" Treasury bills denominated in pesos but indexed in the US dollar and those holding them were paid up in full. It seemed the government had paid its way out of the crisis but, under the IMF-imposed economic reforms after the peso bailout in 1995, the number of Mexicans living in extreme poverty increased by more than 50 percent and the national average minimum wage fell 20 percent.

During 1997/9 a fresh crisis took hold of the international banking community. The IMF was repeatedly called upon to administer its harsh medicine in such countries as Thailand, Indonesia and South Korea. This time the treatment did not work and the crisis spread until the entire global financial system was in crisis.

One result of the credit crisis of 1998 is that rich countries, as never before, were widely perceived as caring only about their own interests.

The IMF has become something of a global pawnbroker imposing savage conditions alongside emergency loan packages. According to the "Global Exchange" organisation:

"The IMF now acts as a global loan shark exerting enormous leverage over the economies of more than sixty countries. These countries have to follow the IMF's policies to get loans, international assitance and even debt relief. Thus the IMF decides how much debtor countries can spend on education, health care and environmental protection. The IMF is one of the most powerful institutions on earth - yet few know how it works."

The fact is that corporate power relies on the other supranational powers to reinforce its dominance i.e.: the IMF, the World Bank (both of which were created in 1944 at the conference at Bretton Woods, New Hampshire), and the World Trade Organisation which was formed in 1994.

Further south from Mexico, Brazil, the largest country in South America is beginning to put years of woeful mismanagement behind it. Brazil has welcomed in the bankers of the World Bank and the economists of the International Monetary Fund. It has fought hard to overcome years of political corruption and in-fighting and, as if to encourage it, the White House stresses that it looks forward to welcoming Brazil as a full economic trading partner. However, behind all the firm statements of commitment, the US Department of Agriculture is still slapping subsidies and quotas on two-thirds of the citrus fruits that Brazil could export to the US.

According to the Sunday Telegraph (October 2006), a plan for the wholesale privatisation of the Amazon rainforest will be raised by David Miliband, (?), the "British" Environment Secretary, at a summit meeting in Mexico in October. More fodder for the capitalist machine?

It is to be hoped that Mexico will not find herself in the same position as many other countries, enmeshed in a web from which there is no escape.