Reaping What Bretton Woods Has Sown

The International Forecaster
April 2, 2011

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

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

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

 

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

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

 

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

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

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

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

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

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

The Historical Framework of Globalization

by Dr. James Polk

Our era  is largely defined by two highly interlinked concepts: globalization and the so-called “war on terrorism.” As geopolitical-economic operatives, both concepts complement each other as significant means to specific ends; both shape important aspects of our daily lives and determine form and content of much that passes for public discourse. Particularly in Europe and in the United States, populations are kept vigilant to the “clear and present dangers” ostensibly posed by “international terrorism” through mnemonic icons of troop movements in Central Asia and/or strategically deployed bomb plots that are purportedly thwarted “just in time” by our intelligence services. As if copied from the lecture notes of Carl Schmitt, a totalitarian “enemy” has been constructed which can conveniently be called back into service at a moment’s notice should public memory begin to fade.globalization

Globalization has proceeded by means of three distinct but clearly interwoven interpretations and representations of the world in toto: as the sociopolitical “cosmopolitan moment” [1] (to borrow a term coined by Seyla Benhabib)  of the globe as the embodiment of our lifeworld;  as the stage of operations for multinational corporate/financial interests; and as the battlefield on which incited conflicts are seen as requiring comprehensive, global solutions which are to be achieved through a New World Order. In its current development, the construct of a unified world is largely synonymous with the ideal world government as envisioned in the Sociocracy of French philosopher Auguste Comte in the 19th century [2], in which international bankers and elitist think tanks determine and execute public policies.

Implied in this global ideal is of course the complete dissolution of the nationstate as such through the gradual but de facto irreversible integration of individual nations into the totalitarian framework of the political, economic, and chief judicial/juridical entities operating on a global scale (most significantly the United Nations, the International Monetary Fund, the World Bank, the Bank for International Settlements, and the World Trade Organization).

The philosophical roots of this integrative process can be found in the determinant factors that led to the Treaty of Westphalia, which ended Europe’s horrendously brutal Thirty Years War. The treaty also buried the eius regio, quius religio principle and reinstated the tolerance of Protestants as spelled out in the Peace of Augsburg (1555), the revocation of which under the Holy Roman Emperor Ferdinand II in the Edict of Restitution (1629) prompted the vicious counter-response from Protestant nobility in Austria and Bohemia. The terms of the peace accord also radically limited the territory and power of the Holy Roman Empire and acknowledged the sovereignty of the many principalities that constituted the realm of German influence, with France and Sweden entrusted as guardians of the peace.

But the Treaty of Westphalia was of major importance for one other significant reason. The councils of minds at Münster and Osnabrück were able to establish through rational discourse the concept of a peace accord based on the primacy of reason and rules of law that transcended warring national interests and belief systems, effecting in a truly Kantian sense the regulative idea of attainable peace as a principle of reason to guide all actions of the parties involved, and to which all participants, nolens volens, were to submit.  This is clearly evident in the way various clauses in the treaty assumed a meta-normative role. The treaty thus paved the way for an era of secularized thought in which the rule of law and political negotiation served as instruments of conflict resolution and as guidelines of national sovereignty based on principles of reason.

Parallel to the development of international principles of cosmopolitan conduct in our own time such as those found in the Universal Declaration of Human Rights and in the statutes of the Geneva Convention, economic and financial interests have exploited both the judicial codices formulated in international agreements and the juridical measures that now in many cases supersede pre-existing national laws through increasingly totalitarian bodies such as the World Trade Organization. [3] It is the power embodied in the domains of concentrated financial interests that today are in the process of transforming our lifeworld and realms of experience in previously unimaginable ways.

Coup d’état

Silently, and carefully hidden from public scrutiny, a coup d’état occurred in 1913 in the United States of America. The results of this bloodless coup are being felt today on a truly global scale. With careful, detailed planning, representatives of the most powerful financial institutions in both Europe and the United States succeeded through the enactment of the Federal Reserve Act (also known as the Glass-Owen bill) in radically and permanently altering the foundations of the nation as a whole.

Through the creation of the Federal Reserve system, the financial interests that conceived, wrote, and implemented the Glass-Owen bill took away the authority of the United States government as theoretical representative of the citizens of the country to print our own currency and placed that authority in the hands of a private banking cartel. According to Article 1, Section 8 of the American Constitution, it is Congress to whom the power is given “to coin money” and to “regulate the value thereof.” The Federal Reserve Act of course interprets this power quite literally as the coinage of pennies, nickels, dimes and quarters; it is, however, the creation of money in the form of bank notes that lies at the heart of the act. When the government requires money, the United States treasury writes out IOUs in the form of U.S. treasury bonds, which it then sells to the privately owned Federal Reserve system in exchange for a Federal Reserve check. In reality, the “Federal” Reserve bank simply enters the corresponding numbers on its computer keyboard, once as a liability, and once as an asset. In other words, the numbers are created by the Federal Reserve out of nothing, for which it then demands repayment with interest. The funds are then credited to the government’s account, from which all the various bills are then paid. It is in that exact moment that “money” as such is created by the Federal Reserve bank out of nothing. But there is one additional trick used by all banks operating on the Federal Reserve system: fractional reserve lending. This scheme allows the bank to multiply the amount of money it lends to clients tenfold without having the actual funds in reserve to back it up. This entire scheme has allowed the hidden owners of the private “Federal” Reserve system to effectively extort money from the American people in the form of IOUs, also known as treasuries, which then must be repaid with interest.

The legal anchoring of this scandalous system in the Glass-Owen bill in the United States was only the beginning. Like other central bank signatories to the Bretton-Woods Agreement (and thereby to the World Bank and International Monetary Fund), the US Federal Reserve system is able to control the amount of money in circulation through several mechanisms, for example by raising or lowering interest rates and/or the minimum reserve requirements of banks in the fractional reserve lending system. Through the enactment of the Federal Reserve system, the essence of money has become debt. Through the creation of debt, money comes into existence in the system. It thus becomes obvious that it is never in the bank’s interest that clients, borrowers, actually pay off their debts because that would leave the banks without interest payments. When the borrowers happen to be sovereign nations, for example from the developing world, or now the United States and a number of countries in Western Europe, the interest payments earned by the banks easily go into the hundreds of billions. This is extraordinarily profitable for banks who have been able to “sit in on” the negotiation of peace accords (through which terms of surrender and repayment of damages are settled) and international trade agreement deliberations to regulate global commerce and finance.

World War I and its outcome provide a very enlightening example of just how this has been  accomplished. The terms forced on Germany through Article 231 of the Treaty of Versailles laid the foundations for the consolidation of the enormously powerful financial interests in London, New York, Frankfurt, and Paris, which had been instrumental in pushing through, by hook and by crook, the Federal Reserve Act in the United States. (It should be noted that these are the same financial interests which also did their part to push the nations into military conflict in the first place. The focus here however remains restricted to the genesis and perpetration of the private central banking cartel as such and its connections to the current financial crisis and the war on terrorism.)

The horror of World War I quickly led to the realization  that the global  community of nations should not allow a recurrence of such cruelty, and that universally recognized and accepted principles of conduct were needed to guarantee international peace and harmony. Such principles of good will, intentionally redolent of the terms set out by the Peace of Westphalia, could only be implemented through a common general will or global consent. In other words, a League of Nations, a Völkerbund in the strictest Kantian sense, was needed to define and implement internationally valid principles of humanitarian, indeed cosmopolitan conduct to benefit the entire human species and our lifeworld.

It was this positive impulse among other things that led the participants in the “war to end all wars” to found the “Covenant of the League of Nations.” The agreement encompassed 26 principles to which the 58 member states committed themselves.  But the most central problem confounding the ideals of the League was the fact that the agreement was predicated on significant economic interests that essentially doomed  the treaty to failure from the start. The League was based on the status quo as defined by the victors of World War I, who, as simultaneous representatives of ostensibly “national interests” did everything in their power to ensure the richest gains possible for the elite bankers working behind the scenes in New York, London, Paris, and  Frankfurt. And the means to this end were found in the terms of reparation payments they then forced on Germany. An article featured in the May 31, 1922 issue of the New York Times outlined the most salient demands being made on Germany by the Allied entente powers:

“The Reparation Commission called on Germany to consent to the following undertakings before May 31:

1. Reduce  expenditures and balance the budget.

2. Halt the increase of the foreign debt and the growth of paper money in circulation.

3. Accept a light supervision of her efforts in that direction.

4. Take measures to prevent the further flight of capital and to get back $2,000,000,000  spirited out of the country in the last two years.

5. Assure the Reichbank’s  autonomy from politics.

6. Resume publication of Government fiscal statistics.” [4]

Attentive readers will immediately note the  unmistakable parallels to the demands (“austerity measures”) frequently imposed on developing nations through the international monetary fund in its policy proposals formerly known as “structural adjustment programs,” including demands for the privatization of the banking system, or  to use the phrase introduced by “Fed speak,” to guarantee the banks’ independence (“autonomy”) from politics. (In corrected translation, this is the simple demand that this private banking cartel as the sole source of phony money should be allowed to perpetrate its debt-based currency scam without any supervision or control by the people or their representatives.) A gamut of conditions imposed by the IMF has consistently led to widespread domestic hardship and economic crises  within the nations in question, because the interests and well-being of the general population are often clearly at odds with the IMF programs being implemented. Joseph Stiglitz put it this way:

“The IMF is pursuing not just the objectives set out in its original mandate, of enhancing global stability and insuring that there are funds for countries facing a threat of recession to pursue expansionary policies. It is also pursuing the interests of the financial community. This means the IMF has objectives that are often in conflict with each other. The tension is all the greater because this conflict can’t be brought out into the open: if the new role of the IMF were publicly acknowledged, support for that institution might weaken, and those who have succeeded in changing the mandate almost surely knew this. Thus the new mandate had to be clothed in ways that seemed at least superficially consistent with the old.” [5]

And it is precisely this extraordinary expansion of the power  of the private bank cartels that was central to much of the behind-the-scenes maneuvering during and after World War I. In a very enlightening essay published in Foreign Affairs in 1936, Leon Fraser  brought the true hidden agenda of the banking elite into selective public view:

“The truth was that the experts [i.e., of the second Young Commission – jp]  seized the occasion of the new reparation adjustment as an excuse to repair a long recognized gap in the international financial fabric. The organization which they proposed had functions not connected with reparations, and these ostensibly secondary functions were, in the inner consciousness of the originators, the predominating motives for its establishment. By some of the members — in particular those connected with commercial banking — the institution was envisaged as an instrument for opening up new fields of world trade by means of fresh extensions of credit […]  While there was no unanimity about the opportuneness of creating more credit, all experts agreed that the Bank could fill one obvious hiatus in the financial organization of the world, namely provide a center for central bank collaboration and for corporation to improve the international monetary mechanism.” [6]

The bank Fraser was referring to, of course,  is none other than the central bank of all central banks, the Bank for International Settlements, with headquarters in Basel.

Louis McFadden, former banker-turned-congressman from Pennsylvania, condemned the hidden motives and operational methods of the Versailles Treaty in no uncertain terms. McFadden took particular aim at the Bank for International Settlements, which took charge of the gold Germany was required to deliver in reparations payments. Writing with reference to Grotius’s theory of just settlements of military conflicts (De Jure Belli ac Pacis),  McFadden argued that the Versailles Treaty had in fact been negotiated in bad faith, with the “House of Morgan” and the usual suspects from the clique of international bankers being the prime beneficiaries of the reparations bonds, and that substantial aspects of the treaty had been worked out in the financial centers of London well in advance of the actual negotiations in Paris.  McFadden prophetically augured the long-term  consequences of the treaty as laying the “foundation for the renewal of a dozen wars that are legally justifiable.” [7]

The consolidation of economic and financial power in the West at the end of World War II made possible the ensuing rapid and encompassing globalization of inchoate trends already visible in the League of Nations platform.  The establishment of the United Nations in 1945 as well as the foundation of the World Bank and the International Monetary Fund as stipulated by the outcome of the Bretton-Woods Agreement (1944), contributed substantially to the international system of currency and finance of a distinctively Anglo-American character. This meant in particular that the central banks of all member nations were largely to adopt the modus operandi of the Federal Reserve system. The printing of national currencies, once the privilege of sovereign governments, was to be replaced by the system of government bonds or IOU issuance, which would then be lent or sold to the private banking cartel (spearheaded by the country’s respective “central-bank”) in exchange for currency notes — with interest due. The outcomes of two world wars, in which a private banking cartel had ultimately written the terms of economic and financial surrender, had forced the vanquished into participant roles in the greatest scam in human history: the creation of money out of thin air through debt, with interest payments in permanent flow to the elite sphere of private bankers — all on a global scale.

Many of the newest investment vehicles and resources discussed in growing numbers of studies have so successfully interlocked the political realm with the corporate/financial that a clear separation is no longer possible. Nevertheless, among wide segments of the populations in many countries, voting citizens are still convinced of the sanctity of the elected office. Such convictions are based on false advertising, and the voters have failed to see the fusion between capital and the successful campaign/office tenure regularly performed behind the smoke and mirrors screens of the mass media. In a number of important instances, even opposition/protest movements have been bought and staged. [8] Yes we can! Si, se puede!  should now be seen as the pitiful chants of all those who fell for the change they believed in. Change came in the form of continued bailouts for Wall Street banks, with the former head of the New York Federal Reserve placed comfortably by Obama himself on the throne of the US treasury, immune from critique and reprimand, despite his urgent e-mails to the legal counsel of AIG urging silence in response to congressional queries on the extent of the Fed’s bailout funds funneled into the pockets of Goldman Sachs. (Of course at the time these revelations became public (on the Internet!), the mainstream media was busy convincing the semi-conscious public of the importance of the then-and-now whereabouts of Tiger Woods’s genitalia.) It’s been all business as usual. But the teary-eyed and desperate seem to fall for the Hollywood hype every time: He’s the ONE!

The schematic procedures carried out by the IMF, the World Bank, and the WTO often acquire an outright absurd character. Such was the case in the often-cited structural adjustment program developed for Bolivia in the Enhanced Structural Adjustment Facility (ESAF) Policy Framework Paper for 1998 – 2001. In exchange for much-needed IMF loans, Bolivia was required to transfer the “rights” of the Cochabamba water system to the private firm of Aquas de Tunari, a subsidiary of the International Water Ltd. / Bechtel Corporation consortium. (Bechtel gained international notoriety under the George W. Bush administration as the recipient of generous no-bid military “reconstruction” contracts in Iraq.) The privatization of the water supply meant that prices for this necessity of life increased by more than 300%, becoming unattainable for many families. With public outrage and potential violence on the horizon, a report authored by World Bank experts advised: no public subsidies should be given to ameliorate the increase in water tariffs in Cochabamba. [9]

Recent machinations by the World Trade Organization have also led to precarious globalization strategies. According to Greg Palast, an internal report sent to his office at The Guardian revealed actual threats directed at the leftist government of Brazil if the country continued to refuse to sign the Financial Services Agreement of 1999. This agreement formed the international legal basis for the deregulation of so-called “financial products,” specifically derivatives such as “credit default swaps” and “mortgage backed securities,” which then led to the global financial meltdown.

The pattern of crisis followed by a ready-made plan for a global solution has been persistent since the early 1800s, when European banking elites pulled out all the stops in order to establish a central bank on American soil. These were the same structural interests which eventually led to the passage of the Glass-Owen bill. And it is within this pattern that the origins of the current financial crisis are also to be found, specifically within the highest echelons of the Federal Reserve system.

Subsequent to the September 11 2001 attacks on New York and Washington, D.C., the Federal Reserve was “forced” to lower interest rates to a minimum in order to avoid a potential collapse of a number of important services and industries. This move enabled the decision by all branch banks nationwide to make credit easily available, particularly for home mortgages.  Two years later, the entire country was in a house-buying frenzy with visions of homes increasing in value year after year until the end of time. Many buyers bought two or three in the hope of “flipping” them into untold thousands in profit.

The foundations were laid for the initialization of a previously unknown financial instrument — BISTRO (Broad Index Secured Trust Offering) — developed in the think tanks of J P Morgan. At the speed of electronic funds transfers, BISTRO enabled unimaginable exponential profits through “credit default swaps” which the “House of Morgan” then divided up into packages and sold by the thousands to interested parties among corporations, banks, insurance giants, and investment funds worldwide. As the German magazine Der Spiegel so accurately put it, “bank managers and central bankers were the capitans of this ship, among them superstars such as J P Morgan manager Blythe Masters and former Federal Reserve chairman Alan Greenspan.” [10]

Attentive observers of financial history should recognize the concrete developmental pattern at work here. A putatively well-founded expansion of credit and a corresponding economic boom are followed by a sudden retraction of credit and an implosion of the markets. At the core of our current crisis is the banking industry and its ability to create money and derivatives out of thin air. The collapse was predictable, and in all likelihood carefully planned. No sooner had the collapse of 2008 begun than the directors of America’s leading banks began to issue ultimatums to the American people through their own representative, Henry Paulson (former CEO of Goldman Sachs), as the Secretary of the Treasury. If bank coffers were not replenished with ample public funds, Americans would soon wake up to martial law on the streets of many major cities.

And promptly, the see-no-evil representatives in Washington came to the rescue of the global financial elite, all at the expense of tax payers, and ultimately also at the expense of national sovereignty. Concomitant demands for “global solutions” to this admittedly global problem were promptly put on the national and international agenda by the G20 and by leading economists such as Kenneth Rogoff. The U.S. Congress recently ratified a comprehensive overhaul of the nation’s financial system, and thereby granted increased authority to the Federal Reserve. On a global scale, financial and economic experts from around the world are in the process of developing fundamental revisions to the Basel Accord (Basel III) within the framework of the Bank for International Settlements. [11]

At the same time, the Federal Reserve’s late-2010 announcement that it would initiate a second round of “quantitative easing” in its efforts to free up credit and relieve financial institutions of moribund assets led to more vociferous calls for a new global reserve currency to replace the ailing dollar. The Federal Reserve’s decision to increase liquidity by printing more dollars is already seen as a potentially fatal mistake by many skeptics particularly in China, which holds an inordinately large sum of US dollars in its reserve currency trove. Russia and China, among others, have already agreed to a bilateral exchange of goods and services by using their own currencies, without the US dollar as intermediary.

Unavoidable inflationary pressures guarantee that the days of the US dollar as the world’s reserve currency are numbered; this outcome does not bode well for the people of the United States, who very likely will see martial law if and when prices for daily necessities such as gasoline skyrocket beyond what is affordable. As the chief operative for all the clandestine forces intent on seeing a one-world government in control of the planet, the Federal Reserve has been actively destroying the US currency as an instrument of national sovereignty. And in close collaboration with the “Fed,” working groups within both the United Nations and the IMF have published key position papers in which a new global currency is proposed, to be printed or coined expectedly by a global central bank. [12]

The global “war on terror”

Accompanying the increased authority of global instruments such as the IMF, the WTO and the Bank for International Settlements, an international surveillance network is fully in the making with far-reaching consequences for individual life and liberty. At particular risk today is the integrity of the Internet as the last bastion of uncensored information exchange. With every publicized “cyber attack,“ whether a reality or an ad hoc creation, new demands go out for increased security measures and legislation to control both form and content online. New key supranational concepts such as “Al Qaeda,” “terrorist networks” or “suspicious money transfers” are now in common use in public discourse and enable the implementation of unprecedented military/political control measures and surveillance strategies over ordinary citizens. The readiness of governments worldwide to adopt anti-terror measures that are potentially inimical to all forms of individual freedom is predicated on the questionable acceptance of the official explanation offered by the US government and its intelligence services for the events that transpired on 9/11. The paucity of critique, particularly among  mainstream US media, of the implausible official narrative of all that transpired on 9/11 is itself sufficient evidence of a thoroughly top=down controlled American press.

The analyses of David Ray Griffin and Steven Jones (among many others) [13] of multiple inconsistencies and sheer impossibilities in the official explanation of the 9/11 attacks provide clear evidence that there were and are far more sinister plots at work than what the American public is ready to believe. Answers to the inevitable cui bono? question point to the long-term beneficiaries of global control which will ultimately allow  for no exceptions.

The pattern is always the same. Present a crisis of epoch proportions, and offer solutions on a global scale which ultimately consolidate the interests of a New World Order, one as envisioned by Auguste Comte, with bankers and a select intellectual elite in complete control. The Federal Reserve system should be seen for what it is – the agency of an international group of banking elites who are hell-bent on obtaining a global government, with a single system of universal justice, a single currency, and an all-encompassing surveillance network as guarantors of a fail-proof, totalitarian, neo-feudalistic regime. Thanks to the efforts of this same global elite, the United States is in its last throes and will eventually succumb to the constraints its leaders have willingly adopted within the context of globalization.

As admirable as perpetual peace might be under a system of benevolent reason, with the sanctity of all terrestrial life on earth foremost in mind, the concrete historical track record of those most actively engaged in bringing the ideals of this New World Order into full fruition suffices completely as a reason to reject their goals.

Elite bankers in the United States and Europe conceived and enacted the Federal Reserve system as a major stepping stone toward eventual global governance of a neo-feudalistic society. The continuing global economic crisis was also conceived and implemented as a further essential tool in bringing about a one-world government controlled by bankers and their intellectual shills sitting in crucial positions and calling the shots — qui custodiet custodes?

The “Fed’s” covert policies and clandestine machinations are accelerating the “need” and “demand” for a global currency to replace existing national currencies. In previous eras, the implementation of such plans and intentions would have been deemed high treason and appropriately punished; in today’s parlance, it should most properly be categorized as an act of terrorism.

Deeply influenced by both the Frankfurt School of Critical Theory and twentieth-century phenomenology, James Polk pursued his graduate studies in philosophy at the Freie Universität Berlin, where he received his PhD for work on Kant and Heidegger. He is the author of Am Horizont der Zeit and The Triumph of Ignorance and Bliss – Pathologies of Public America.

Notes

1) Benhabib’s understanding of cosmopolitanism and its implications for human societies is presented in Another Cosmopolitanism (Berkeley Tanner Lectures), Robert Post, ed. (Oxford: Oxford University Press, 2008) and in The Rights of Others: Aliens, Residents, and Citizens (The Seeley Lectures), (Cambridge: Cambridge University Press, 2004).

2) Auguste Comte, System of Positive Polity, transl. Richard Congreve, (London: Longmans, Green, and Co., 1877).

3) See in particular Michel Chossudovsky, “The Global Economic Crisis: An Overview,” The Global Economic Crisis. The Great Depression of the XXI Century, ed. Michel Chossudovsky and Andrew Gavin Marshall, (Montreal: Global Research Publishers, 2010) 3 – 60.

4) Edwin L. James, “Reparations Issue Now Up To Bankers,” New York Times, 31 May 1922.

5) Joseph E. Stiglitz, Globalization and Its Discontents (New York: W. W. Norton, 2002) 206 – 207.

6) Leon Fraser, “The International Bank and Its Future,” Foreign Affairs (New York: Council on Foreign Relations) vol. 14, number 3 (April, 1936), p. 454.

7) Louis T. McFadden, “The Reparations Problem and the Bank for International Settlements,” Annals of the American Academy of Political and Social Science, vol. 150, Economics of World Peace (July, 1930), p. 53 – 64.

8) Michel Chossudovsky, “Manufacturing Dissent: the Anti-globalization Movement is Funded by the Corporate Elites. The People’s Movement has been Hijacked,” Center for Global Research, September 20, 2010, http://www.globalresearch.ca

9) IMF Bolivia Public Expenditure Review. www.wds.worldbank.org

10) The original Spiegel text: “Bankmanager und Zentralbanker waren auf diesem Schiff die Kapitäne, darunter Superstars wie die JP Morgan-Managerin Blythe Masters und der Ex-chef der US-Notenbank, Alan Greenspan.” (translation j.p.) “Der größte Diebstahl aller Zeiten – wie Finanzjongleure die Welt in eine Krise stürzten, die noch lange nicht beendet ist,“ Der Spiegel, number 47 (November 11, 2008) p. 47.

11) See Ellen Brown, “The Towers of Basel: Secretive Plan to Create a Global Central Bank,” The Global Economic Crisis. The Great Depression of the XXI Century, ed. Michel Chossudovsky and Andrew Gavin Marshall, (Montreal: Global Research Publishers, 2010) 330 – 342.

12) See in particular the International Monetary Fund paper entitled “Reserve Accumulation and International Monetary Stability” prepared by the Strategy, Policy and Review Department (April 13, 2010) and the United Nations’ “Report of the Commission of Experts of the President of the United Nations General Assembly on Reforms of the International Monetary and Financial System” (September 21, 2009).

13) See especially David Ray Griffin, Debunking 9/11 Debunking: An Answer to Popular Mechanics and Other Defenders of the Official Conspiracy Theory (Northampton, Mass.: Olive Branch Press, 2007); idem., The 9/11 Commission Report: Omissions and Distortions (Northampton, Mass.: Olive Branch Press, 2004); Niels H. Harrit, Jeffrey Farrer, Steven E. Jones et al., “Active Thermite Material Discovered in Dust from the 9/11 World Trade Center Catastrophe,” The Open Chemical Physics Journal, 2009, 2, 7-31.

Russian President: New World Order with new Global Currency

By Luis R. Miranda
The Real Agenda
June 19, 2010

As many other puppet presidents have done it before, Russia’s Dmitri Medvedev is taking his opportunity to call for a new world

Russian President, Dmitri Medvedev

order and to push the Russian currency up, as the new reserve paper.  “What had seemed untouchable has collapsed. The bubbles that created the illusion of flourishing economies have burst,” said the Russian president in St Petersburg.  As he opened Russia’s annual economic forum, Medvedev said the times when western corporations dominated the economy had ended and the new interest in Russia was a sign that the world was changing.

“For Russia this situation is a challenge and an opportunity.  And we should use it to build a modern, flourishing and strong Russia … which will be a co-founder of the new world economic order.” he added.  Talking in front of many businessmen from around the world, the Russia leader followed the steps of other governments and presidents as well as of non-governmental institutions.  In the past, George H.W. Bush, Tony Blair, Gordon Brown, Mahmoud Ahmadinejad and Barack Obama, among others, have called for the formation of a new world order.  In fact, all those leaders have cited the creation of a centralized global entity as the only way to cure the many illnesses the world suffers from today.

Together with governments, there are supranational institutions such as the World Bank, the International Monetary Fund, the European Central Bank and their respective leaders, who have echoed the same calls for the creation of a new global order.  This order would have the power, will amass the resources of the planet and will decide how to use them.  The plan also includes the creation of a single monetary policy to which all countries will have to submit to.  The adherence to such policy will enable the countries to receive loans and aid packages that will make them more dependent on the foreign centralized organization, and less dependent on their own Constitutions and laws.  In fact, in the world seen through the eyes of people like Medvedev and the other power men, there is no need for nationality, sovereignty or identity.

Russia has already taken significant steps to aid the lifeline of the new world order -which has existed for many years now-.  The country will introduce a policy of zero taxation on capital gains which will indeed allow the free flow of monies in and out of, much like it happens in corrupt countries where this policy aides and enables money laundering through the banking system.  This would transform Russia into the new United States when it comes to moving large amounts of money coming from all places -drug trade, arms trade, slave trade- to circulate and make its way across the world.  Of course Medvedev did not present it like that.  Instead, he said his policy would allow companies working on long-term investments.  Russia, he said, “was improving the legal system to offer better protection for businesses against the long arm of bureaucracy.”  In other words, crime, of the kind recently experienced through Wall Street banks around the world will have a safe heaven in Russia.  What Mr. Medvedev’s words mean is that all the policies that allowed the bankers to suck countries dry of their resources will also exist in the world order he dreams about, where Russia is the new leader and he’s the new Al Capone.  Limits to bureaucracy means zero regulation or a perfect environment for the corporations to run their shady Ponzi schemes.

The Russian president also talked about something that would make any corporate businessman smile, even in the rainiest day.  Russia has completed the process of simplifying migration procedures, so that workers can go in the country; or better, Russia just like China will allow corporations to pay some of the lowest wages to its citizens in exchange for long working days with no benefits and no rights.  Again, it’s clear he did not present it this way.  He said Russia had changed to attract “highly-qualified specialists” from the financial and technology sectors.  “The state should not tear down the apples from the tree of economics,” he said.

Medvedev complemented his speech on a new world order by forcefully attacking the dollar and claiming that it was time for a new reserve currency.  “Only three, five years ago it seemed like a fantasy” to create a new reserve currency. Now we are seriously discussing it.”  He does not seem to be alone in that ride.  It seems China is up to the challenge as well.  In the meantime, Bank of Israel Governor Stanley Fischer added his voice to the Russian’s, but from a very different point of view, one that is rarely heard.  He said: “New reserve currencies don’t emerge by fiat. They emerge as countries change.”  A fiat currency is paper or electronic  money that is not backed up by a nation’s industry or production, but by an inflated system of blind trust on what a piece of paper says it is worth.

Apparently, both Russia and China think it is time for the East to drive the world and its markets.  “We really live at a unique time, and we should use it to build a modern, prosperous and strong Russia, a Russia that will be a co-founder of the new world economic order,” he said.  The problem with Medvedev’s vision is that his plan will not work, at least not for as long as he wants.  Although he intends to build something new, better and different, he plans on using the same old policies that brought us to the disaster he so clearly criticizes.  He wants prosperity, a modern economy and a strong Russia, but he wants zero regulation, a centralized dictatorial government and no sovereignty.  Maybe he forgets that Capitalism, the real Capitalism, was born from free independent nations that based their development on the use of their resources to produce quality goods that benefited the world.  Instead, he wants a global economy filled with cheap, slave-made products that need to be changed every few months.  He wants the best workers, but will follow the same old low-paying policies that maintains Asia’s and Latin America’s people in a continuous feudal model of development.

“If the world depended completely on the dollar, the situation would have been more difficult,” Medvedev reminded the audience.  So why does he want a single global currency, then?

Government Austerity: The Match that Lights the Fire

PrisonPlanet.com

Top historians, social and financial analysts are warning that the draconian austerity measures currently being prepared by governments in the west will cause riots and even revolutions as people react with fury in response to their jobs, savings, basic public services, pensions and welfare money being seized by the financial terrorists who caused the economic collapse in the first place.

British historian Simon Schama is a creature of the establishment and he makes it clear whose side he is on at the end of his recent column for the Bilderberg-controlled Financial Times entitled, The World Teeters on the Brink of a New Age of Rage. However, the fact that he is an elitist at heart only makes Schama’s predications all the more alarming. This is someone on the inside who is painfully aware of the fact that the imminent attempt on behalf of the globalists to enforce so-called “austerity measures” on the people of the west, which in reality is a euphemistic term for the next leg of the new world order, is not just going to cause riots and mass social unrest, but it could even lead to revolution if the elite allow the situation to spiral out of their control.

Schama’s forecast that “we might be on the threshold of an age of rage” is not to be taken lightly. This isn’t coming from Alex Jones, Max Keiser or Gerald Celente, it’s coming directly from a man considered to be Britain’s pre-eminent contemporary historian.

Schama writes that the coming austerity measures, particularly in America where anger “targeted at an elitist federal authority is raging through the US like a fever,” will require “Barack Obama to be more than a head tutor. It will need him to be a warrior of the word every bit as combative as the army of the righteous that believes it has the Constitution on its side, and in its inchoate thrashings, can yet bring down the governance of the American Republic.”

In other words, Obama will have to ditch “misplaced obligations of civility” and become an authoritarian enforcer in order to emerge successful against the rising tide of Constitutionalist rage that will be directed against the coming austerity fascism.

We’ve all seen the numerous videos of protesters in Greece rioting, fighting police, and even firebombing banks and killing people in reaction to the crippling austerity measures imposed by the government in the name of appeasing the mandates of the European Union’s near $1 trillion dollar bailout package. However, the establishment media as a whole has largely failed to identify precisely what those austerity measures are, and more importantly how they will almost undoubtedly lead to massive social dislocation in the UK and the United States when implemented.

The austerity measures currently being considered and indeed implemented in the UK and other European countries, with the United States not too far behind, can be summarized as follows.

– Massive cuts to public services that are two or three times larger in size than anything we’ve witnessed since the second world war.

– Both capping of and reduction of salaries for public sector workers that will inevitably lead to huge strikes, bringing whole countries to a standstill for weeks on end, further eviscerating any economic recovery. Public sector workers in France and Spain are already staging large industrial strikes. As we saw in Greece, strikes routinely lead to riots and violence.

– Shocking tax increases that if they mirror previous trends could amount to an astounding 98 per cent tax on all earnings over a low level of income. Such increases would virtually eliminate the middle class because all earnings over around £20,000 ($28,000) would almost entirely go straight to the government. Knowing that such exorbitant hikes would cause millions of people to try to evade tax, thousands of new tax inspectors are being hired to crackdown on evaders. In the United States, 16,000 new IRS agents were recently hired in anticipation of people avoiding massive tax hikes that are in the pipeline, as well as new taxes as a result of Obamacare, which will begin to be implemented in the coming years.     Read More…

Care to Know How to End Government Tyranny? Ask Robert Steele

If you know there is a New World Order out there formed by corrupt government officials and their handlers, but do not know where or how to start the fight against them, here are 11 minutes of great ideas.  This is not limited to a country or a state within a country.  It can be applied to any country, state, district and town.  So watch, listen, absorb and get to work!