Part One: The Banking Houses of Morgan and Rockefeller
The Four Horsemen of Banking (Bank of America, JP Morgan Chase, Citigroup and Wells Fargo) own the Four Horsemen of Oil (Exxon Mobil, Royal Dutch/Shell, BP and Chevron Texaco); in tandem with Deutsche Bank, BNP, Barclays and other European old money behemoths.
But their monopoly over the global economy does not end at the edge of the oil patch.
According to company 10K filings to the SEC, the Four Horsemen of Banking are among the top ten stock holders of virtually every Fortune 500 corporation.
So who then are the stockholders in these money center banks?
This information is guarded much more closely. My queries to bank regulatory agencies regarding stock ownership in the top 25 US bank holding companies were given Freedom of Information Act status, before being denied on “national security” grounds. This is rather ironic, since many of the bank’s stockholders reside in Europe.
One important repository for the wealth of the global oligarchy that owns these bank holding companies is US Trust Corporation – founded in 1853 and now owned by Bank of America.
A recent US Trust Corporate Director and Honorary Trustee was Walter Rothschild. Other directors included Daniel Davison of JP Morgan Chase, Richard Tucker of Exxon Mobil, Daniel Roberts of Citigroup and Marshall Schwartz of Morgan Stanley. 
J. W. McCallister, an oil industry insider with House of Saud connections, wrote in The Grim Reaper that information he acquired from Saudi bankers cited 80% ownership of the New York Federal Reserve Bank- by far the most powerful Fed branch- by just eight families, four of which reside in the US.
They are the Goldman Sachs, Rockefellers, Lehmans and Kuhn Loebs of New York; the Rothschilds of Paris and London; the Warburgs of Hamburg; the Lazards of Paris; and the Israel Moses Seifs of Rome.
CPA Thomas D. Schauf corroborates McCallister’s claims, adding that ten banks control all twelve Federal Reserve Bank branches.
He names N.M. Rothschild of London, Rothschild Bank of Berlin, Warburg Bank of Hamburg, Warburg Bank of Amsterdam, Lehman Brothers of New York, Lazard Brothers of Paris, Kuhn Loeb Bank of New York, Israel Moses Seif Bank of Italy, Goldman Sachs of New York and JP Morgan Chase Bank of New York. Schauf lists William Rockefeller, Paul Warburg, Jacob Schiff and James Stillman as individuals who own large shares of the Fed. 
The Schiffs are insiders at Kuhn Loeb. The Stillmans are Citigroup insiders, who married into the Rockefeller clan at the turn of the century.
Eustace Mullins came to the same conclusions in his book The Secrets of the Federal Reserve, in which he displays charts connecting the Fed and its member banks to the families of Rothschild, Warburg, Rockefeller and the others. 
The control that these banking families exert over the global economy cannot be overstated and is quite intentionally shrouded in secrecy.
Their corporate media arm is quick to discredit any information exposing this private central banking cartel as “conspiracy theory”. Yet the facts remain.
The House of Morgan
The Federal Reserve Bank was born in 1913, the same year US banking scion J. Pierpont Morgan died and the Rockefeller Foundation was formed.
The House of Morgan presided over American finance from the corner of Wall Street and Broad, acting as quasi-US central bank since 1838, when George Peabody founded it in London.
Peabody was a business associate of the Rothschilds. In 1952 Fed researcher Eustace Mullins put forth the supposition that the Morgans were nothing more than Rothschild agents. Mullins wrote that the Rothschilds, “…preferred to operate anonymously in the US behind the facade of J.P. Morgan & Company”. 
Author Gabriel Kolko stated:
“Morgan’s activities in 1895-1896 in selling US gold bonds in Europe were based on an alliance with the House of Rothschild.” 
The Morgan financial octopus wrapped its tentacles quickly around the globe. Morgan Grenfell operated in London. Morgan et Ce ruled Paris. The Rothschild’s Lambert cousins set up Drexel & Company in Philadelphia.
The House of Morgan catered to the Astors, DuPonts, Guggenheims, Vanderbilts and Rockefellers. It financed the launch of AT&T, General Motors, General Electric and DuPont. Like the London-based Rothschild and Barings banks, Morgan became part of the power structure in many countries.
By 1890 the House of Morgan was lending to Egypt’s central bank, financing Russian railroads, floating Brazilian provincial government bonds and funding Argentine public works projects.
A recession in 1893 enhanced Morgan’s power. That year Morgan saved the US government from a bank panic, forming a syndicate to prop up government reserves with a shipment of $62 million worth of Rothschild gold. 
Morgan was the driving force behind Western expansion in the US, financing and controlling West-bound railroads through voting trusts. In 1879 Cornelius Vanderbilt’s Morgan-financed New York Central Railroad gave preferential shipping rates to John D. Rockefeller’s budding Standard Oil monopoly, cementing the Rockefeller/Morgan relationship.
The House of Morgan now fell under Rothschild and Rockefeller family control. A New York Herald headline read, “Railroad Kings Form Gigantic Trust”. J. Pierpont Morgan, who once stated, “Competition is a sin”, now opined gleefully,
“Think of it. All competing railroad traffic west of St. Louis placed in the control of about thirty men.”
Morgan and Edward Harriman’s banker Kuhn Loeb held a monopoly over the railroads, while banking dynasties Lehman, Goldman Sachs and Lazard joined the Rockefellers in controlling the US industrial base. 
In 1903 Banker’s Trust was set up by the Eight Families. Benjamin Strong of Banker’s Trust was the first Governor of the New York Federal Reserve Bank. The 1913 creation of the Fed fused the power of the Eight Families to the military and diplomatic might of the US government.
If their overseas loans went unpaid, the oligarchs could now deploy US Marines to collect the debts. Morgan, Chase and Citibank formed an international lending syndicate.
The House of Morgan was cozy with the British House of Windsor and the Italian House of Savoy. The Kuhn Loebs, Warburgs, Lehmans, Lazards, Israel Moses Seifs and Goldman Sachs also had close ties to European royalty.
By 1895 Morgan controlled the flow of gold in and out of the US. The first American wave of mergers was in its infancy and was being promoted by the bankers.
In 1897 there were sixty-nine industrial mergers. By 1899 there were twelve-hundred. In 1904 John Moody – founder of Moody’s Investor Services – said it was impossible to talk of Rockefeller and Morgan interests as separate. 
Public distrust of the combine spread. Many considered them traitors working for European old money. Rockefeller’s Standard Oil, Andrew Carnegie’s US Steel and Edward Harriman’s railroads were all financed by banker Jacob Schiff at Kuhn Loeb, who worked closely with the European Rothschilds.
Several Western states banned the bankers. Populist preacher William Jennings Bryan was thrice the Democratic nominee for President from 1896 -1908. The central theme of his anti-imperialist campaign was that America was falling into a trap of “financial servitude to British capital”.
Teddy Roosevelt defeated Bryan in 1908, but was forced by this spreading populist wildfire to enact the Sherman Anti-Trust Act. He then went after the Standard Oil Trust.
In 1912 the Pujo hearings were held, addressing concentration of power on Wall Street. That same year Mrs. Edward Harriman sold her substantial shares in New York’s Guaranty Trust Bank to J.P. Morgan, creating Morgan Guaranty Trust.
Judge Louis Brandeis convinced President Woodrow Wilson to call for an end to interlocking board directorates. In 1914 the Clayton Anti-Trust Act was passed.
Jack Morgan – J. Pierpont’s son and successor – responded by calling on Morgan clients Remington and Winchester to increase arms production. He argued that the US needed to enter WWI. Goaded by the Carnegie Foundation and other oligarchy fronts, Wilson accommodated.
As Charles Tansill wrote in America Goes to War, “Even before the clash of arms, the French firm of Rothschild Freres cabled to Morgan & Company in New York suggesting the flotation of a loan of $100 million, a substantial part of which was to be left in the US to pay for French purchases of American goods.”
The House of Morgan financed half the US war effort, while receiving commissions for lining up contractors like GE, Du Pont, US Steel, Kennecott and ASARCO. All were Morgan clients.
Morgan also financed the British Boer War in South Africa and the Franco-Prussian War. The 1919 Paris Peace Conference was presided over by Morgan, which led both German and Allied reconstruction efforts. 
In the 1930’s populism resurfaced in America after Goldman Sachs, Lehman Bank and others profited from the Crash of 1929. 
House Banking Committee Chairman Louis McFadden (D-NY) said of the Great Depression:
“It was no accident. It was a carefully contrived occurrence…The international bankers sought to bring about a condition of despair here so they might emerge as rulers of us all”.
Sen. Gerald Nye (D-ND) chaired a munitions investigation in 1936. Nye concluded that the House of Morgan had plunged the US into WWI to protect loans and create a booming arms industry.
Nye later produced a document titled The Next War, which cynically referred to “the old goddess of democracy trick”, through which Japan could be used to lure the US into WWII.
In 1937 Interior Secretary Harold Ickes warned of the influence of “America’s 60 Families”.
Historian Ferdinand Lundberg later penned a book of the exact same title. Supreme Court Justice William O. Douglas decried:
“Morgan influence…the most pernicious one in industry and finance today.”
Jack Morgan responded by nudging the US towards WWII. Morgan had close relations with the Iwasaki and Dan families – Japan’s two wealthiest clans – who have owned Mitsubishi and Mitsui, respectively, since the companies emerged from 17th Century shogunates.
When Japan invaded Manchuria, slaughtering Chinese peasants at Nanking, Morgan downplayed the incident.
Morgan also had close relations with Italian fascist Benito Mussolini, while German Nazi Dr. Hjalmer Schacht was a Morgan Bank liaison during WWII. After the war Morgan representatives met with Schacht at the Bank of International Settlements (BIS) in Basel, Switzerland. 
The House of Rockefeller
BIS is the most powerful bank in the world, a global central bank for the Eight Families who control the private central banks of almost all Western and developing nations. The first President of BIS was Rockefeller banker Gates McGarrah- an official at Chase Manhattan and the Federal Reserve.
McGarrah was the grandfather of former CIA director Richard Helms. The Rockefellers- like the Morgans- had close ties to London. David Icke writes in Children of the Matrix, that the Rockefellers and Morgans were just “gofers” for the European Rothschilds. 
Historian Carroll Quigley wrote in his epic book Tragedy and Hope that BIS was part of a plan:
“to create a world system of financial control in private hands able to dominate the political system of each country and the economy of the world as a whole…to be controlled in a feudalistic fashion by the central banks of the world acting in concert by secret agreements.”
The US government had a historical distrust of BIS, lobbying unsuccessfully for its demise at the 1944 post-WWII Bretton Woods Conference.
Instead the Eight Families’ power was exacerbated, with the Bretton Woods creation of the IMF and the World Bank. The US Federal Reserve only took shares in BIS in September 1994. 
BIS holds at least 10% of monetary reserves for at least 80 of the world’s central banks, the IMF and other multilateral institutions. It serves as financial agent for international agreements, collects information on the global economy and serves as lender of last resort to prevent global financial collapse.
BIS promotes an agenda of monopoly capitalist fascism. It gave a bridge loan to Hungary in the 1990’s to ensure privatization of that country’s economy.
It served as conduit for Eight Families funding of Adolf Hitler- led by the Warburg’s J. Henry Schroeder and Mendelsohn Bank of Amsterdam. Many researchers assert that BIS is at the nadir of global drug money laundering. 
It is no coincidence that BIS is headquartered in Switzerland, favorite hiding place for the wealth of the global aristocracy and headquarters for the P-2 Italian Freemason’s Alpina Lodge and Nazi International.
Other institutions which the Eight Families control include the World Economic Forum, the International Monetary Conference and the World Trade Organization.
Bretton Woods was a boon to the Eight Families. The IMF and World Bank were central to this “new world order”. In 1944 the first World Bank bonds were floated by Morgan Stanley and First Boston. The French Lazard family became more involved in House of Morgan interests.
Lazard Freres- France’s biggest investment bank- is owned by the Lazard and David-Weill families- old Genoese banking scions represented by Michelle Davive. A recent Chairman and CEO of Citigroup was Sanford Weill.
In 1968 Morgan Guaranty launched Euro-Clear, a Brussels-based bank clearing system for Eurodollar securities. It was the first such automated endeavor. Some took to calling Euro-Clear “The Beast”.
Brussels serves as headquarters for the new European Central Bank and for NATO. In 1973 Morgan officials met secretly in Bermuda to illegally resurrect the old House of Morgan, twenty years before Glass Steagal Act was repealed.
Morgan and the Rockefellers provided the financial backing for Merrill Lynch, boosting it into the Big 5 of US investment banking. Merrill is now part of Bank of America.
John D. Rockefeller used his oil wealth to acquire Equitable Trust, which had gobbled up several large banks and corporations by the 1920’s. The Great Depression helped consolidate Rockefeller’s power.
His Chase Bank merged with Kuhn Loeb’s Manhattan Bank to form Chase Manhattan, cementing a long-time family relationship. The Kuhn-Loeb’s had financed – along with Rothschilds – Rockefeller’s quest to become king of the oil patch.
National City Bank of Cleveland provided John D. with the money needed to embark upon his monopolization of the US oil industry.
The bank was identified in Congressional hearings as being one of three Rothschild-owned banks in the US during the 1870’s, when Rockefeller first incorporated as Standard Oil of Ohio. 
One Rockefeller Standard Oil partner was Edward Harkness, whose family came to control Chemical Bank. Another was James Stillman, whose family controlled Manufacturers Hanover Trust.
Both banks have merged under the JP Morgan Chase umbrella. Two of James Stillman’s daughters married two of William Rockefeller’s sons. The two families control a big chunk of Citigroup as well. 
In the insurance business, the Rockefellers control Metropolitan Life, Equitable Life, Prudential and New York Life. Rockefeller banks control 25% of all assets of the 50 largest US commercial banks and 30% of all assets of the 50 largest insurance companies. 
Insurance companies- the first in the US was launched by Freemasons through their Woodman’s of America- play a key role in the Bermuda drug money shuffle.
Companies under Rockefeller control include Exxon Mobil, Chevron Texaco, BP Amoco, Marathon Oil, Freeport McMoran, Quaker Oats, ASARCO, United, Delta, Northwest, ITT, International Harvester, Xerox, Boeing, Westinghouse, Hewlett-Packard, Honeywell, International Paper, Pfizer, Motorola, Monsanto, Union Carbide and General Foods.
The Rockefeller Foundation has close financial ties to both Ford and Carnegie Foundations. Other family philanthropic endeavors include Rockefeller Brothers Fund, Rockefeller Institute for Medical Research, General Education Board, Rockefeller University and the University of Chicago- which churns out a steady stream of far right economists as apologists for international capital, including Milton Friedman.
The family owns 30 Rockefeller Plaza, where the national Christmas tree is lighted every year, and Rockefeller Center. David Rockefeller was instrumental in the construction of the World Trade Center towers.
The main Rockefeller family home is a hulking complex in upstate New York known as Pocantico Hills. They also own a 32-room 5th Avenue duplex in Manhattan, a mansion in Washington, DC, Monte Sacro Ranch in Venezuela, coffee plantations in Ecuador, several farms in Brazil, an estate at Seal Harbor, Maine and resorts in the Caribbean, Hawaii and Puerto Rico. 
The Dulles and Rockefeller families are cousins. Allen Dulles created the CIA, assisted the Nazis, covered up the Kennedy hit from his Warren Commission perch and struck a deal with the Muslim Brotherhood to create mind-controlled assassins. 
Brother John Foster Dulles presided over the phony Goldman Sachs trusts before the 1929 stock market crash and helped his brother overthrow governments in Iran and Guatemala. Both were Skull & Bones, Council on Foreign Relations (CFR) insiders and 33rd Degree Masons. 
The Rockefellers were instrumental in forming the depopulation-oriented Club of Rome at their family estate in Bellagio, Italy.
Their Pocantico Hills estate gave birth to the Trilateral Commission. The family is a major funder of the eugenics movement which spawned Hitler, human cloning and the current DNA obsession in US scientific circles.
John Rockefeller Jr. headed the Population Council until his death.  His namesake son is a Senator from West Virginia. Brother Winthrop Rockefeller was Lieutenant Governor of Arkansas and remains the most powerful man in that state.
In an October 1975 interview with Playboy magazine, Vice-President Nelson Rockefeller – who was also Governor of New York – articulated his family’s patronizing worldview:
“I am a great believer in planning – economic, social, political, military, total world planning.”
But of all the Rockefeller brothers, it is Trilateral Commission (TC) founder and Chase Manhattan Chairman David who has spearheaded the family’s fascist agenda on a global scale. He defended the Shah of Iran, the South African apartheid regime and the Chilean Pinochet junta.
He was the biggest financier of the CFR, the TC and (during the Vietnam War) the Committee for an Effective and Durable Peace in Asia- a contract bonanza for those who made their living off the conflict.
Nixon asked him to be Secretary of Treasury, but Rockefeller declined the job, knowing his power was much greater at the helm of the Chase. Author Gary Allen writes in The Rockefeller File that in 1973:
“David Rockefeller met with twenty-seven heads of state, including the rulers of Russia and Red China.”
Following the 1975 Nugan Hand Bank/CIA coup against Australian Prime Minister Gough Whitlam, his British Crown-appointed successor Malcolm Fraser sped to the US, where he met with President Gerald Ford after conferring with David Rockefeller. 
Part Two: The Freemasons and the House of Rothschild
In 1789 Alexander Hamilton became the first Treasury Secretary of the United States. Hamilton was one of many Founding Fathers who were Freemasons. He had close relations with the Rothschild family which owns the Bank of England and leads the European Freemason movement.
George Washington, Benjamin Franklin, John Jay, Ethan Allen, Samuel Adams, Patrick Henry, John Brown and Roger Sherman were all Masons.
Roger Livingston helped Sherman and Franklin write the Declaration of Independence. He gave George Washington his oaths of office while he was Grand Master of the New York Grand Lodge of Freemasons.
Washington himself was Grand Master of the Virginia Lodge. Of the General Officers in the Revolutionary Army, thirty-three were Masons. This was highly symbolic since 33rd Degree Masons become Illuminated. 
Populist founding fathers led by John Adams, Thomas Jefferson, James Madison and Thomas Paine- none of whom were Masons- wanted to completely severe ties with the British Crown, but were overruled by the Masonic faction led by Washington, Hamilton and Grand Master of the St. Andrews Lodge in Boston General Joseph Warren, who wanted to “defy Parliament but remain loyal to the Crown”.
St. Andrews Lodge was the hub of New World Masonry and began issuing Knights Templar Degrees in 1769. 
General Joseph Warren
All US Masonic lodges are to this day warranted by the British Crown, whom they serve as a global intelligence and counterrevolutionary subversion network. Their most recent initiative is the Masonic Child Identification Program (CHIP).
According to Wikipedia, the CHIP programs allow parents the opportunity to create a kit of identifying materials for their child, free of charge. The kit contains a fingerprint card, a physical description, a video, computer disk, or DVD of the child, a dental imprint, and a DNA sample.
The First Continental Congress convened in Philadelphia in 1774 under the Presidency of Peyton Randolph, who succeeded Washington as Grand Master of the Virginia Lodge. The Second Continental Congress convened in 1775 under the Presidency of Freemason John Hancock.
Peyton’s brother William succeeded him as Virginia Lodge Grand Master and became the leading proponent of centralization and federalism at the First Constitutional Convention in 1787. The federalism at the heart of the US Constitution is identical to the federalism laid out in the Freemason’s Anderson’s Constitutions of 1723.
William Randolph became the nation’s first Attorney General and Secretary of State under George Washington. His family returned to England loyal to the Crown. John Marshall, the nation’s first Supreme Court Justice, was also a Mason. 
When Benjamin Franklin journeyed to France to seek financial help for American revolutionaries, his meetings took place at Rothschild banks.
He brokered arms sales via German Mason Baron von Steuben. His Committees of Correspondence operated through Freemason channels and paralleled a British spy network. In 1776 Franklin became de facto Ambassador to France.
In 1779 he became Grand Master of the French Neuf Soeurs (Nine Sisters) Lodge, to which John Paul Jones and Voltaire belonged. Franklin was also a member of the more secretive Royal Lodge of Commanders of the Temple West of Carcasonne, whose members included Frederick Prince of Whales.
While Franklin preached temperance in the US, he cavorted wildly with his Lodge brothers in Europe. Franklin served as Postmaster General from the 1750’s to 1775 – a role traditionally relegated to British spies. 
With Rothschild financing Alexander Hamilton founded two New York banks, including Bank of New York.  He died in a gun battle with Aaron Burr, who founded Bank of Manhattan with Kuhn Loeb financing.
Hamilton exemplified the contempt which the Eight Families hold towards common people, once stating:
“All communities divide themselves into the few and the many. The first are the rich and the well born, the others the mass of the people…The people are turbulent and changing; they seldom judge and determine right. Give therefore to the first class a distinct, permanent share of government. They will check the unsteadiness of the second.”
Hamilton was only the first in a series of Eight Families cronies to hold the key position of Treasury Secretary.
In recent times Kennedy Treasury Secretary Douglas Dillon came from Dillon Read (now part of UBS Warburg). Nixon Treasury Secretaries David Kennedy and William Simon came from Continental Illinois Bank (now part of Bank of America) and Salomon Brothers (now part of Citigroup), respectively.
Carter Treasury Secretary Michael Blumenthal came from Goldman Sachs, Reagan Treasury Secretary Donald Regan came from Merrill Lynch (now part of Bank of America), Bush Sr. Treasury Secretary Nicholas Brady came from Dillon Read (UBS Warburg) and both Clinton Treasury Secretary Robert Rubin and Bush Jr. Treasury Secretary Henry Paulson came from Goldman Sachs.
Obama Treasury Secretary Tim Geithner worked at Kissinger Associates and the New York Fed.
Thomas Jefferson argued that the United States needed a publicly-owned central bank so that European monarchs and aristocrats could not use the printing of money to control the affairs of the new nation.
“A country which expects to remain ignorant and free…expects that which has never been and that which will never be. There is scarcely a King in a hundred who would not, if he could, follow the example of Pharaoh – get first all the people’s money, then all their lands and then make them and their children servants forever…banking establishments are more dangerous than standing armies. Already they have raised up a money aristocracy.”
Jefferson watched as the Euro-banking conspiracy to control the United States unfolded, weighing in:
“Single acts of tyranny may be ascribed to the accidental opinion of the day, but a series of oppressions begun at a distinguished period, unalterable through every change of ministers, too plainly prove a deliberate, systematic plan of reducing us to slavery”. 
But the Rothschild-sponsored Hamilton’s arguments for a private US central bank carried the day. In 1791 the Bank of the United States (BUS) was founded, with the Rothschilds as main owners. The bank’s charter was to run out in 1811.
Public opinion ran in favor of revoking the charter and replacing it with a Jeffersonian public central bank. The debate was postponed as the nation was plunged by the Euro-bankers into the War of 1812. Amidst a climate of fear and economic hardship, Hamilton’s bank got its charter renewed in 1816.
Old Hickory, Honest Abe & Camelot
In 1828 Andrew Jackson took a run at the US Presidency. Throughout his campaign he railed against the international bankers who controlled the BUS. Jackson ranted, “You are a den of vipers. I intend to expose you and by Eternal God I will rout you out.
If the people understood the rank injustices of our money and banking system there would be a revolution before morning.”
Jackson won the election and revoked the bank’s charter stating:
“The Act seems to be predicated on an erroneous idea that the present shareholders have a prescriptive right to not only the favor, but the bounty of the government…for their benefit does this Act exclude the whole American people from competition in the purchase of this monopoly.
“Present stockholders and those inheriting their rights as successors be established a privileged order, clothed both with great political power and enjoying immense pecuniary advantages from their connection with government.
“Should its influence be concentrated under the operation of such an Act as this, in the hands of a self-elected directory whose interests are identified with those of the foreign stockholders, will there not be cause to tremble for the independence of our country in war… controlling our currency, receiving our public monies and holding thousands of our citizens independence, it would be more formidable and dangerous than the naval and military power of the enemy.
“It is to be regretted that the rich and powerful too often bend the acts of government for selfish purposes… to make the rich richer and more powerful. Many of our rich men have not been content with equal protection and equal benefits, but have besought us to make them richer by acts of Congress. I have done my duty to this country.”
Populism prevailed and Jackson was re-elected. In 1835 he was the target of an assassination attempt. The gunman was Richard Lawrence, who confessed that he was, “in touch with the powers in Europe”. 
Still, in 1836 Jackson refused to renew the BUS charter. Under his watch the US national debt went to zero for the first and last time in our nation’s history.
This angered the international bankers, whose primary income is derived from interest payments on debt. BUS President Nicholas Biddle cut off funding to the US government in 1842, plunging the US into a depression. Biddle was an agent for the Paris-based Jacob Rothschild. 
The Mexican War was simultaneously sprung on Jackson.
A few years later the Civil War was unleashed, with London bankers backing the Union and French bankers backing the South. The Lehman family made a fortune smuggling arms to the south and cotton to the north.
By 1861 the US was $100 million in debt. New President Abraham Lincoln snubbed the Euro-bankers again, issuing Lincoln Greenbacks to pay Union Army bills.
The Rothschild-controlled Times of London wrote:
“If that mischievous policy, which had its origins in the North American Republic, should become indurated down to a fixture, then that Government will furnish its own money without cost. It will pay off its debts and be without debt. It will have all the money necessary to carry on its commerce. It will become prosperous beyond precedent in the history of the civilized governments of the world. The brains and the wealth of all countries will go to North America. That government must be destroyed, or it will destroy every monarchy on the globe.” 
The Euro-banker-written Hazard Circular was exposed and circulated throughout the country by angry populists.
“The great debt that capitalists will see is made out of the war and must be used to control the valve of money. To accomplish this government bonds must be used as a banking basis. We are now awaiting Secretary of Treasury Salmon Chase to make that recommendation. It will not allow Greenbacks to circulate as money as we cannot control that. We control bonds and through them banking issues”.
The 1863 National Banking Act reinstated a private US central bank and Chase’s war bonds were issued. Lincoln was re-elected the next year, vowing to repeal the act after he took his January 1865 oaths of office.
Before he could act, he was assassinated at the Ford Theatre by John Wilkes Booth. Booth had major connections to the international bankers. His granddaughter wrote This One Mad Act, which details Booth’s contact with “mysterious Europeans” just before the Lincoln assassination.
Following the Lincoln hit, Booth was whisked away by members of a secret society known as Knights of the Golden Circle (KGC). KGC had close ties to the French Society of Seasons, which produced Karl Marx.
KGC had fomented much of the tension that caused the Civil War and President Lincoln had specifically targeted the group.
Booth was a KGC member and was connected through Confederate Secretary of State Judah Benjamin to the House of Rothschild. Benjamin fled to England after the Civil War. 
Nearly a century after Lincoln was assassinated for issuing Greenbacks, President John F. Kennedy found himself in the Eight Families’ crosshairs. Kennedy had announced a crackdown on off-shore tax havens and proposed increases in tax rates on large oil and mining companies.
He supported eliminating tax loopholes which benefit the super-rich. His economic policies were publicly attacked by Fortune magazine, the Wall Street Journal and both David and Nelson Rockefeller.
Even Kennedy’s own Treasury Secretary Douglas Dillon, who came from the UBS Warburg-controlled Dillon Read investment bank, voiced opposition to the JFK proposals. 
Kennedy’s fate was sealed in June 1963 when he authorized the issuance of more than $4 billion in United States Notes by his Treasury Department in an attempt to circumvent the high interest rate usury of the private Federal Reserve international banker crowd.
The wife of Lee Harvey Oswald, who was conveniently gunned down by Jack Ruby before Ruby himself was shot, told author A. J. Weberman in 1994:
“The answer to the Kennedy assassination is with the Federal Reserve Bank. Don’t underestimate that. It’s wrong to blame it on Angleton and the CIA per se only. This is only one finger on the same hand. The people who supply the money are above the CIA”. 
Fueled by incoming President Lyndon Johnson’s immediate escalation of the Vietnam War, the US sank further into debt. Its citizens were terrorized into silence. If they could kill the President they could kill anyone.
The House of Rothschild
The Dutch House of Orange founded the Bank of Amsterdam in 1609 as the world’s first central bank. Prince William of Orange married into the English House of Windsor, taking King James II’s daughter Mary as his bride.
The Orange Order Brotherhood, which recently fomented Northern Ireland Protestant violence, put William III on the English throne where he ruled both Holland and Britain. In 1694 William III teamed up with the UK aristocracy to launch the private Bank of England.
The Old Lady of Threadneedle Street- as the Bank of England is known- is surrounded by thirty foot walls. Three floors beneath it the third largest stock of gold bullion in the world is stored. 
The Rothschilds and their inbred Eight Families partners gradually came to control the Bank of England. The daily London gold “fixing” occurred at the N. M. Rothschild Bank until 2004.
As Bank of England Deputy Governor George Blunden put it:
“Fear is what makes the bank’s powers so acceptable. The bank is able to exert its influence when people are dependent on us and fear losing their privileges or when they are frightened.”
Mayer Amschel Rothschild sold the British government German Hessian mercenaries to fight against American Revolutionaries, diverting the proceeds to his brother Nathan in London, where N.M. (Nathan and Mayer) Rothschild & Sons was established.
Mayer was a serious student of Cabala and launched his fortune on money embezzled from William IX- royal administrator of the Hesse-Kassel region and a prominent Freemason.
Rothschild-controlled Barings bankrolled the Chinese opium and African slave trades. It financed the Louisiana Purchase.
When several states defaulted on its loans, Barings bribed Daniel Webster to make speeches stressing the virtues of loan repayment.
The states held their ground, so the House of Rothschild cut off the money spigot in 1842, plunging the US into a deep depression. It was often said that the wealth of the Rothschilds depended on the bankruptcy of nations.
Mayer Amschel Rothschild once said:
“I care not who controls a nation’s political affairs, so long as I control its currency”.
War didn’t hurt the family fortune either. The House of Rothschild financed the Prussian War, the Crimean War and the British attempt to seize the Suez Canal from the French.
Nathan Rothschild made a huge financial bet on Napoleon at the Battle of Waterloo, while also funding the Duke of Wellington’s peninsular campaign against Napoleon. Both the Mexican War and the Civil War were goldmines for the family.
One Rothschild family biography mentions a London meeting where an “International Banking Syndicate” decided to pit the American North against the South as part of a “divide and conquer” strategy.
German Chancellor Otto von Bismarck once stated:
“The division of the United States into federations of equal force was decided long before the Civil War. These bankers were afraid that the United States… would upset their financial domination over the world. The voice of the Rothschilds prevailed.”
Rothschild biographer Derek Wilson says the family was the official European banker to the US government and strong supporters of the Bank of the United States. 
Family biographer Niall Ferguson notes a “substantial and unexplained gap” in private Rothschild correspondence between 1854-1860. He says all copies of outgoing letters written by the London Rothschilds during this Civil War period “were destroyed at the orders of successive partners”. 
French and British troops had, at the height of the Civil War, encircled the US. The British sent 11,000 troops to Crown-controlled Canada, which gave safe harbor to Confederate agents.
France’s Napoleon III installed Austrian Hapsburg family member Archduke Maximilian as his puppet emperor in Mexico, where French troops massed on the Texas border.
Only an 11th-hour deployment of two Russian warship fleets by US ally Czar Alexander II in 1863 saved the United States from re-colonization. 
That same year the Chicago Tribune blasted:
“Belmont (August Belmont was a US Rothschild agent and had a Triple Crown horse race named in his honor) and the Rothschilds…who have been buying up Confederate war bonds.”
Salmon Rothschild said of a deceased President Lincoln:
“He rejects all forms of compromise. He has the appearance of a peasant and can only tell barroom stories.”
Baron Jacob Rothschild was equally flattering towards the US citizenry.
He once commented to US Minister to Belgium Henry Sanford on the over half a million Americans who died during the Civil War:
“When your patient is desperately sick, you try desperate measures, even to bloodletting.”
Salmon and Jacob were merely carrying forth a family tradition.
A few generations earlier Mayer Amschel Rothschild bragged of his investment strategy, “When the streets of Paris are running in blood, I buy”. 
Mayer Rothschild’s sons were known as the Frankfurt Five. The eldest – Amschel – ran the family’s Frankfurt bank with his father, while Nathan ran London operations.
Youngest son Jacob set up shop in Paris, while Salomon ran the Vienna branch and Karl was off to Naples. Author Frederick Morton estimates that by 1850 the Rothschilds were worth over $10 billion.  Some researchers believe that their fortune today exceeds $100 trillion.
The Warburgs, Kuhn Loebs, Goldman Sachs, Schiffs and Rothschilds have intermarried into one big happy banking family. The Warburg family- which controls Deutsche Bank and BNP- tied up with the Rothschilds in 1814 in Hamburg, while Kuhn Loeb powerhouse Jacob Schiff shared quarters with Rothschilds in 1785.
Schiff immigrated to America in 1865. He joined forces with Abraham Kuhn and married Solomon Loeb’s daughter. Loeb and Kuhn married each others sisters and the Kuhn Loeb dynasty was consummated. Felix Warburg married Jacob Schiff’s daughter.
Two Goldman daughters married two sons of the Sachs family, creating Goldman Sachs. In 1806 Nathan Rothschild married the oldest daughter of Levi Barent Cohen, a leading financier in London. 
Thus, Merrill Lynch super-bull Abby Joseph Cohen and Clinton Secretary of Defense William Cohen are likely descended from Rothschilds.
Today the Rothschild’s control a far-flung financial empire, which includes majority stakes in most world central banks. The Edmond de Rothschild clan owns the Banque Privee SA in Lugano, Switzerland and the Rothschild Bank AG of Zurich.
The family of Jacob Lord Rothschild owns the powerful Rothschild Italia in Milan.
They are founding members of the exclusive $10 trillion Club of the Isles – which controls corporate giants Royal Dutch Shell, Imperial Chemical Industries, Lloyds of London, Unilever, Barclays, Lonrho, Rio Tinto Zinc, BHP Billiton and Anglo American DeBeers.
It dominates the world supply of petroleum, gold, diamonds, and many other vital raw materials. 
The Club of the Isles provides capital for George Soros’ Quantum Fund NV – which made substantial financial gains in 1998-99 following the collapse of currencies of Thailand, Indonesia and Russia. Soros was a major shareholder at George W. Bush’s Harken Energy.
The Club of Isles is led by the Rothschilds and includes Queen Elizabeth II and other wealthy European aristocrats and Nobility.
Perhaps the largest repository for Rothschild wealth today is Rothschilds Continuation Holdings AG – a secretive Swiss-based bank holding company. By the late 1990s scions of the Rothschild global empire were Barons Guy and Elie de Rothschild in France and Lord Jacob and Sir Evelyn Rothschild in Britain. 
Evelyn was chairman of the Economist and a director at DeBeers and IBM UK.
Jacob backed Arnold Schwarzenegger’s California gubernatorial campaign. He took control of Khodorkovsky’s YUKOS oil shares just before the Russian government arrested him.
In 2010 Jacob joined Rupert Murdoch in a shale oil extraction partnership in Israel through Genie Energy – a subsidiary of IDT Corporation. 
 10K Filings of Fortune 500 Corporations to SEC. 3-91
 10K Filing of US Trust Corporation to SEC. 6-28-95
 The Federal Reserve ‘Fed Up’. Thomas Schauf. www.davidicke.com 1-02
 The Secrets of the Federal Reserve. Eustace Mullins. Bankers Research Institute. Staunton, VA. 1983. p.179
 Ibid. p.53
 The Triumph of Conservatism. Gabriel Kolko. MacMillan and Company New York. 1963. p.142
 Rule by Secrecy: The Hidden History that Connects the Trilateral Commission, the Freemasons and the Great Pyramids. Jim Marrs. HarperCollins Publishers. New York. 2000. p.57
 The House of Morgan. Ron Chernow. Atlantic Monthly Press NewYork 1990
 Marrs. p.57
 Democracy for the Few. Michael Parenti. St. Martin’s Press. New York. 1977. p.178
 The Great Crash of 1929. John Kenneth Galbraith. Houghton, Mifflin Company. Boston. 1979. p.148
 Children of the Matrix. David Icke. Bridge of Love. Scottsdale, AZ. 2000
 The Confidence Game: How Un-Elected Central Bankers are Governing the Changed World Economy. Steven Solomon. Simon & Schuster. New York. 1995. p.112
 Marrs. p.180
 Ibid. p.45
 The Money Lenders: The People and Politics of the World Banking Crisis. Anthony Sampson. Penguin Books. New York. 1981
 The Rockefeller File. Gary Allen. ’76 Press. Seal Beach, CA. 1977
 Dope Inc.: The Book That Drove Kissinger Crazy. Editors of Executive Intelligence Review. Washington, DC. 1992
 The Rockefeller Syndrome. Ferdinand Lundberg. Lyle Stuart Inc. Secaucus, NJ. 1975. p.296
 Marrs. p.53
 The Temple & the Lodge. Michael Bagent & Richard Leigh. Arcade Publishing. New York. 1989. p.259
 Ibid. p.219
 Ibid. p.253
 Ibid. p.233
 The Robot’s Rebellion: The Story of the Spiritual Renaissance. David Icke. Gateway Books. Bath, UK. 1994. p.156
 Democracy for the Few. Michael Parenti. St. Martin’s Press. New York. 1977. p.51
 Fourth Reich of the Rich. Des Griffin. Emissary Publications. Pasadena, CA. 1978. p.171
 Ibid. p.173
 Rule by Secrecy: The Hidden History that Connects the Trilateral Commission, the Freemasons and the Great Pyramids. Jim Marrs. HarperCollins Publishers. New York. 2000. p.68
 The Secrets of the Federal Reserve. Eustace Mullins. Bankers Research Institute. Staunton, VA. 1983. p.179
 Human Race Get Off Your Knees: The Lion Sleeps No More. David Icke. David Icke Books Ltd. Isle of Wight. UK. 2010. p.92
 Marrs. p.212
 Idid. p.139
 Ibid p.141
 David Icke. The Robot’s Rebellion. p.114
 Ibid. p.181
 Rothschild: The Wealth and Power of a Dynasty. Derek Wilson. Charles Schribner’s Sons. New York. 1988. p.178
 The House of Rothschild. Niall Ferguson. Viking Press New York 1998 p.28
 Marrs. p.215
 “What You Didn’t Know about Taxes and the Crown”. Mark Owen. Paranoia. #41. Spring 2006. p.66
 Marrs. p.63
 “The Coming Fall of the House of Windsor”. The New Federalist. 1994
 “The Secret Financial Network Behind ‘Wizard’ George Soros”. William Engdahl. Executive Intelligence Review. 11-1-96
 Marrs. p.86
 “Murdoch, Rothschild Invest in Israeli Oil Shale”. Jerusalem Post. November 22, 2010
About the author: Dean Henderson is the author of Big Oil & Their Bankers in the Persian Gulf: Four Horsemen, Eight Families & Their Global Intelligence, Narcotics & Terror Network andThe Grateful Unrich: Revolution in 50 Countries. His Left Hook blog is atwww.deanhenderson.wordpress.com
An interesting, but extremely important piece of news fell through the cracks earlier this week, that has the potential to be one of the most powerful attacks on the dollar’s reserve currency status since 1973. And it appears to be happening using the West’s own mechanism against them.
On Aug. 1, China announced that around the 1st of October they will be internationalizing the IMF’s Special Drawing Right’s (SDR) currency for global use in trade, thus placing the currency basket in play for nations to use instead of the dollar.
Opinion pieces in the media and speculation by informed sources prepared us for the launch of an instrument most people don’t know about earlier in 2016. Then the International Monetary Fund (IMF) itself published a paper discussing the use of private sector SDRs in July, and a Chinese central bank official confirmed an international development organization would soon issue SDR bonds in China, according to Chinese media Caixin.
Caixin now confirmed which organization exactly will issue the bonds and when: The World Bank and the China Development Bank will issue private sector or “M” SDR in August.
The so-called SDR are an IMF construct of actual currencies, right now the euro, yen, dollar, and pound. It made news last year when the Chinese renminbi was also admitted, although it won’t formally be part of the basket until Oct. 1 of this year.
How much? Nikkei Asian Review reports the volume will be between $300 and $800 million and some Japanese banks are interested in taking up a stake. According to Nikkei some other Chinese banks are also planning to issue SDR bonds. One of them could be the Industrial and Commercial Bank of China (ICBC) according to Chinese website Yicai.com.
The IMF experimented with these M-SDRs in the 1970s and 1980s when banks had SDR 5-7 billion in deposits and companies had issued SDR 563 million in bonds. A paltry amount, but the concept worked in practice.
The G20 finance ministers confirmed they will push this issue, despite private sector reluctance to use these instruments. In their communiqué released after their meeting in China on July 24:
“We support examination of the broader use of the SDR, such as broader publication of accounts and statistics in the SDR and the potential issuance of SDR-denominated bonds, as a way to enhance resilience [of the financial system].”
They are following the advice of governor of the People’s Bank of China (PBOC), Zhou Xiaochuan, although a bit late. Already in 2009 he called for nothing less than a new world reserve currency.
“Special consideration should be given to giving the SDR a greater role. The SDR has the features and potential to act as a super-sovereign reserve currency,” wrote Zhou. — Epoch Times
What is most extraordinary about this is that control over the M SDR will come from Chinese authority, and with the blessings of Japan, Europe, and members of the G20. And this move will also provide China the initial boost it needs to act as a second caretaker of the global reserve currency system, and bring them one step closer to implementing their end game goal of a gold backed trade program.
In addition to this move, China will announce the results of a new audit for their gold reserves, which is a key part in the IMF allowing China to become the gatekeeper for SDR internationalization. And dependent upon how much they declare their reserves to be, it could be a shock to the system for U.S. hegemony over the gold price, and open the door for Shanghai to wrest full control over the pricing of precious metals.
How this will affect the upcoming U.S. elections is unclear, but it is no coincidence that these two events will be occurring in October, and at the time where a change in power for the U.S. empire is taking place. Yet either way, the days of a singular polar reserve currency may soon be at an end, and how quickly its use expands beyond just the G20 will only be a matter of time.
Money Base Growth, the Vietnamese dong, and No More QE
By JC Collins
Each week the monetary world is moving closer to a fundamental change. The lack of money base growth, or money based creation, being overall liquidity in the system, is beginning to deepen the global deflationary period which began in 2008, and hasn’t experienced a sustainable shift towards growth since.
This lack of money based creation is most profound in the developed G20 nations and will continue as long as the central banks of the other emerging nations maintain a currency peg to the US dollar. The fact that nations such as China, Vietnam, Kazakhstan, Angola, and Azerbaijan, among others, have devalued their domestic currencies against the USD in recent months and years, is a testament to the direction which the monetary world is shifting.
There are multiple methods of expanding the international money base. The main central banks could once again begin a quantitative easing program. Some central banks have in fact started these programs, but no real effect can be made until the Federal Reserve restarts a QE program, since most nations are connected to the USD through an exchange rate regime.
The obvious draw backs to QE programs is a loss of confidence in the dollar and further erosion of the ability to create domestic jobs in America. Something which will be high on the agenda this election cycle.
Another method of increasing money base growth would be for the monetary authorities in the US to willingly devalue the USD by 20% to 30% against the currencies of its major trading partners, and those nations maintaining dollar pegs. This is a sticky issue because though that is the desired outcome, the political will is likely lacking for such a drastic move, and the majority of the American population would understand the larger benefit of increased exports and job creation. It would be considered further weakening of America’s hegemonic position in the world.
The option with the greatest potential at this point in time is for the central banks of other nations, specifically the emerging nations, such as China, Vietnam, and others, to not just devalue their currencies against the dollar, but to actually end and de-peg their currencies from the USD.
China, and the others listed above, have begun this process by devaluing the existing peg, but this is only producing marginal results, as the dollar itself has been strengthening over the last few years.
The USD does not provide an optimum currency area for the rest of the world. As such, its use as the primary reserve currency and exchange rate mechanism is problematic and needs to end. The US monetary authorities, at this time, appear to be unwilling to devalue the dollar to the benefit of itself and the rest of the world.
The world is move around this road block, with some support from within the US system, and further devaluations and outright de-pegging from the USD will continue and pick up pace during the remainder of this year. The September 4th G20 meetings in China could mark the beginning of this time period. The effective date of the new SDR, which includes the Chinese renminbi, will be October 1, 2016. This will mark the next period of transition and will likely spark a renewed effort by emerging nations to devalue against the dollar and end pegs altogether.
East Asia, and Asia as a whole, provides an excellent optimum currency area, which could use the growing role of the renminbi as a new pegging mechanism which will provide fundamental money base creation.
Vietnam expressed a few years ago that they would need to end the dollar peg and peg the dong to the currency of their largest trading partner, China, or to a basket of currencies, which could be the SDR or a regional currency unit used by the ASEAN+3, which has yet to be announced. All would be supported by the expanding role of the renminbi as a reserve currency.
The dollar de-facto and unsustainable optimum currency area, abstract as it is, will be further eroded in the coming months. This by no means suggests that the dollar is dying or will crash. A modest depreciation of the dollar, such as the 20% to 30% suggested above, would be a positive for the American economy. Whether this depreciation is forced on the US or it is enacted willingly as official policy, means little at this point. The transition is happening and any additional devaluations by the emerging nations against the USD will only force the hand and eventually lead to the upward valuation of those currency as the monetary world rebalances from decades of dollar abuse and overuse.
Quantitative easing and other counterproductive monetary policies will not be enacted by the Federal Reserve. It would produce the opposite result of what the American monetary authorities are planning.
Sustainable money base creation can no longer be provided but the USD alone. That more than anything else, is the conclusive evidence that a shift is upon us. – JC
Just Push The Button! and see what you get ?
Michelle Obama tells college graduates that people will look past their accomplishments and will only see the color of their skin.
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Look At Thomas Jefferson’s ‘Assault Rifle’ with High Capacity Magazines
If you ever hear a gun control advocate say that the Founding Fathers could never have imagined and would not have allowed possession of “assault weapons” under the Second Amendment, tell them they don’t know much about American history.
The Founding Fathers not only knew about assault weapons, some owned them. Thomas Jefferson bought assault weapons and sent them on the Lewis and Clark expedition.
In fact, these assault weapons were .46 caliber, military, magazine fed, rifles with high capacity magazines capable of firing 22 shots in 60 seconds.
They even came with four, 22 round speedloaders.
The Founding Fathers not only knew about assault weapons, they did not exclude them from the Second Amendment.
Read the article and watch the short video below for a demonstration of Thomas Jefferson’s “Assault Rilfe”
One of the assault rifles that went on the Lewis and Clark expedition is owned by and is on display at the NRA’s National Firearms Museum in Fairfax, Virginia. View it here: NRA’s Lewis & Clark Assault Rifle
The Girardoni (also spelled Girandoni) air rifle was a very advanced design adopted in 1780 by the Austrian Army. While the standard arm of the day was a single-shot flintlock, the Girardoni offered a massive firepower advantage to the men who carried it. The guns (designed by Bartholomäus Girardoni, of Vienna) had a magazine capacity of 22 round balls, which could all be fired within 60 seconds. The balls were .46 caliber, weighing approximately 153 grains, and were propelled at 400-450 feet per second. They were rumored to be silent, but actually had a loud report (although quieter than gunpowder firearms). One of these rifles was carried by the Lewis & Clark expedition into the American West.
The Austrian Army used them for a relatively short time – they were taken out of service by Imperial order in 1788, and issued back to Tyrolian sniper units only in 1792. The reasons for their replacement were more logistical than the result of any actual shortcoming with Girardoni’s design. The problem was that they required special training to use (compared to a normal firearm), required specially trained and equipped gunsmiths to repair and maintain, and difficulty maintaining them in combat conditions. Dr. Robert Beeman has written an outstanding illustrated article on Austrian airguns in general and the Girardoni in particular, which I highly recommend for anyone interested in more detail on these fascinating weapons:
However, I am privileged to be able to share with you this video of an original 1780 Girardoni put together by Luke Haag for presentation at the 2014 AFTE conference in Seattle. Mr. Haag does a great job explaining the operation of the gun, its capabilities and accessories.
In February 1768, a revolutionary article entitled “No taxation without representation” was published London Magazine.
Britain had been milking the colonists like medieval serfs. And the idea of ‘no taxation without representation’ was revolutionary, of course, because it became a rallying cry for the American Revolution. The idea was simple: colonists had no elected officials representing their interests in the British government, therefore they were being taxed without their consent.
To the colonists, this was tantamount to robbery. Thomas Jefferson even included “imposing taxes without our consent” on the long list of grievances claimed against Great Britain in the Declaration of Independence. It was enough of a reason to go to war.
These days we’re taught in our government-controlled schools that taxation without representation is a thing of the past, because, of course, we can vote for (or against) the politicians who create tax policy. But this is a complete charade. Here’s an example:
Just yesterday, the Federal Reserve announced that it would keep interest rates at 0.25%.
Now, this is all part of a carefully contrived, ridiculous monetary system in which non-elected Fed officials raise and lower rates to induce people to adjust their spending habits. When they want us little people to spend more money, they cut interest rates; and when they want us to spend less, they raise interest rates.
It’s incredibly offensive when you think about it– the entire financial system is underpinned by a belief that a committee of bureaucrats knows better than us about what we should be doing with our own money.
So this time around the grand committee decided to keep interest rates steady at 0.25%. Depending on your financial situation, this has tremendous implications. If you’re in debt up to your eyeballs (like the US government), low interest rates might seem great. It also means the U.S. government can continue to borrow even more money and go even deeper into debt, as the expense of WE THE PEOPLE! Low interest rates are also great for banks, because they can borrow for nothing from the Fed, then earn a handsome profit on that free money.
But, if you’re a responsible saver, low interest rates are debilitating. Banks only pay their depositors about 0.1% interest. Yet according to the US Labor Department, inflation is at least 1.1%, and has averaged 2.23% since 2000. This means that when adjusted for inflation, anyone who bothers saving money is losing at least 1% every single year. That might not sound like much. But compounded over a longer period, it can lead to a substantial difference in your standard of living.
Maybe that’s why the U.S. government’s own numbers show that wages, when adjusted for inflation, are far lower than they were even 15 years ago. Or maybe it is why wealth inequality is now at a level not seen since the Great Depression? Or why alarming data from 2015 Pew Research shows that the middle class is now no longer the dominant socioeconomic stratum in the United States?
Ron Paul, during his days running as a presidential candidate (2008 & 2012), used to frequently remark that inflation is an invisible tax on the middle class.
And he’s right!
The combination of inflation and low interest rates benefits certain people, while it causes middle class people’s savings to lose purchasing power. This constitutes a transfer of wealth from savers to debtors. In other words, it’s a tax. Yet unlike a normal tax which is passed by Congress, this inflation/interest rate tax is created by the Federal Reserve central bank.
You and I don’t get to vote for the twelve members of the Federal Reserve Open Market Committee (FOMC) who dictate interest policy. In fact, based on the way the Federal Reserve works, the majority of the committee members are actually appointed by commercial banks.
Here’s the quick version: there are twelve Federal Reserve banks in the US banking system. They are located in major cities like New York, San Francisco, St. Louis, Dallas, etc. And each Federal Reserve bank has its own separate Board of Directors. Yet two-thirds of the board members for each Federal Reserve bank are appointed by big Wall Street banks like JP Morgan and Goldman Sachs.
And oh, what a surprise, the last three major appointments to the Federal Reserve were all former high-level Goldman Sachs employees.
These guys aren’t even trying to hide the fact that Wall Street banks control the Fed.
So, Wall Street banks control the boards of directors at the Fed banks. The Fed bank boards of directors appoint the committee members who set monetary policy.
And the monetary policy they set ends up being a gigantic tax… a transfer of wealth from the middle class to a tiny group of beneficiaries, including the US government and the banks themselves.
This is an unbelievable scam… and it truly is taxation without representation.
Unelected bureaucrats impose their will over the entire financial system in a way that benefits a handful of people at the expense of everyone else.
And we have absolutely no say in the matter.
Well, actually we do.
Even though we can’t vote for the boards of directors at the various Federal Reserve banks like Citigroup and Goldman Sachs can do, we are able to vote with our dollars.
Think about it: every single dollar that you keep in this poor excuse for a financial system is a tacit vote in favor of the corruption.
Every dollar you take out of the system is a vote against it.
And as we’ve explored before, there are substantial options for your savings– precious metals, cryptocurrencies, productive real estate, safe P2P arrangements with strong yields, and well-capitalized banks abroad that actually pay sufficient interest to keep up with inflation.
A Reformed American Economic Reality Emerges in October 2016
“Make America Great Again” aligns with the larger mandates of the multilateral transition soon coming. The next World War will be currency wars and the death of money through the coming collapse of the international monetary system. Here are some details about it.
On September 4th and 5th China will host a G20 Summit in the city of Hangzhou. The Hangzhou Summit represents the end of the old economic order and the birth of a new economic order. It marks the major transition point between the USD-based monetary framework and the SDR-based multilateral monetary framework.
The factual nature of this transition is bookmarked within the publications of international institutions and central banks around the world. The alignment on mandates and policy reform harness the financial momentum which has been developing alongside the growing imbalances in the international monetary system.
The road to full monetary and financial awareness regarding the effects of global imbalances caused by the USD-based framework has been a long and arduous journey through waves of economic stability and financial volatility. Along the way there have been many who have promoted the concept of a multilateral framework and the elimination of financial corruption.
Whether these objectives are achieved in the coming years is dependent upon a larger evolution of how capital is moved around the world. The role of one domestic currency as the global reserve asset has created a fertile environment for those wanting unfair advantage over mass populations and whole nations.
As such, rebalancing world wealth through a true multilateral monetary framework will move forward the lofty goals and ideals of those seeking a fairer world. But with those changes come enhanced risk of shifting sovereign control to a larger and more global ideology. Much like the individual passed sovereign status to a nation state, the nation state will pass sovereign status to a supra-national state under a mandate of global governance.
All nations under one mandate.
The Hangzhou Summit is focused on these mandates. Some of the topics being discussed include how to transition the G20 into an Economic Security Council arm of the United Nations, the UN 2030 Agenda, large scale sovereign debt restructuring through the International Monetary Fund with the utilization of substitution accounts, with a secondary restructuring taking place through the use of Collective Action Clauses.
The broader use of the Special Drawing Right (SDR) will also be at the forefront of conversation, as China begins the process of issuing SDR denominated bonds and implementing an SDR borrowing platform. These objectives are running parallel to the new SDR basket composition which is coming into effect in October. This new basket will include the Chinese renminbi and will be the turning point from which the buildup period for a global reserve asset begins.
China will also be focused on strengthening its network of renminbi denominated institutions, such as the AIIB, New Silk Road Fund, China Development Bank, BRICS New Development Bank, and the transformation of the Chiang Mai Initiative Multilateral into a regional monetary fund which is meant to be integrated within the mandates of the more macro IMF.
The new economic order will see American control of world wealth reduced in a descending sliding scale type process, where foreign exchange reserve diversification will cause geopolitical shifts on a large and active chess board. These shifts will increase in the coming years and will be sold to the American population as the strengthening of nationalism as opposed the loss of international power and influence.
A new US political trend has emerged to match the transition points of the multilateral framework. A Trump presidency is aligned with the larger objectives of the international banking interests. The corruption which has developed within the USD-based framework has manifested as corruption within domestic politics.
The existing ideologies of both the Democratic and Republican parties are reflective of this corruption. With the larger monetary changes taking place it is expected that American politics will also be transformed. The past strategies of Bush and Clinton politics have been based on the aforementioned corruption and no longer have a place within the international discourse which is evolving.
Financial and political corruption within American institutions will be semi-culled and the Trump brand will package and present America’s new international character as Make America Great Again. The untold truth of this slogan is that it aligns with the larger mandates of the multilateral transition.
Somebody should have told Clinton and other American political elites who have suckled off the US dollar.
The news media and other official channels will never openly discuss these facts, but rest assured that the American elite who have invested in the control of domestic information will eventually align with these macro mandates out of pure business interest.
America after the fall will become what it was meant to be – one nation under God. – JC Collins
If you likes How Wolves Change Rivers, check out How Whales Change Climate: https://www.youtube.com/watch?v=M18Hx…
For more from George Monbiot, visit http://www.monbiot.com/ and for more on “rewilding” visit http://bit.ly/1hKGemK and/or check out George Monbiot’s book Feral: rewilding the land, the sea and human life: http://amzn.to/1fjgirx
NOTE: There are “elk” pictured in this video when the narrator is referring to “deer.” This is because the narrator is British and the British word for “elk” is “red deer” or “deer” for short. The scientific report this is based on refers to elk so we wanted to be accurate with the truth of the story.
“When we try to pick out anything by itself, we find it hitched to everything else in the Universe.” – John Muir
When wolves were reintroduced to Yellowstone National Park in the United States after being absent nearly 70 years, the most remarkable “trophic cascade” occurred. What is a trophic cascade and how exactly do wolves change rivers? George Monbiot explains in this movie remix.
Narration from TED: “For more wonder, rewild the world” by George Monbiot. Watch the full talk, here: http://bit.ly/N3m62h
“Greater Yellowstone Coalition – Wolves” (http://bit.ly/1lK4LaT)
“Wolf Mountain” (http://bit.ly/1hgi6JE)
“Primodial – Yellowstone” (https://vimeo.com/77097538)
“Timelapse: Yellowstone National Park” (http://bit.ly/1kF5axc)
“Howling Wolves – Heulende Wölfe” (http://bit.ly/1c2Oidv)
“Fooled by Nature: Beaver Dams” (http://bit.ly/NGgQSU)
“Unfoldment, Revealment, Evolution, Exposition, Integration, Arson” by Chris Zabriskie (http://bit.ly/1c2uckW)
This video was edited by Steve Agnos with editorial assistance from Chris Agnos (who also conceived the idea for the video) the brothers behind Sustainable Man. For more from Steve Agnos visit https://vimeo.com/steveagnos or https://vimeo.com/thesustainableman
For any concerns or questions, you may contact us at http://sustainableman.org/contact/
FAIR USE NOTICE: This video may contain copyrighted material. Such material is made available for educational purposes only. This constitutes a ‘fair use’ of any such copyrighted material as provided for in Title 17 U.S.C. section 106A-117 of the US Copyright Law.
With the arrival of the internet and the age of information, humanity has never had so much knowledge available at its fingertips. A human today can learn more in a 24 hour period than a person could in their whole life only a century or two ago.
Sitting here today I can, with a few key strokes, access the full spectrum of MIT curriculum material. It’s called MIT Open Course Ware and it’s slogan is “Unlocking Knowledge, Empowering Minds”.
There is another website called Khan Academy where you can become proficient in anything from Macro Economics to Cosmology.
With such a volume of information and education available for free, how sustainable can the standard western model of education remain? The evolution of the education system into a multilateral structure will be centralized around a method of testing the level and aptitude of an individuals knowledge and understanding.
Already today international corporations are using such testing models on current and prospective employees. It’s interesting to note that these methods of aptitude testing first started within the military and government industries before being utilized on a broader scale. Its these methodologies which we will see evolve further into a form of cultural standard.
Soon a diploma on the wall will be as meaningless as the paper its printed on. People who seek out information of their own accord and take the time to learn a specific subject, just because, have a proven track record of being more creative at problem solving. These people are able to find solutions and overcome challenges where traditionally educated workers have not.
Free learning and access to unlimited education can just as easily corral creativity as expand it. And that is where the psychological twist comes into play.
Contrary to what others may profess, the age of information will not free mankind from the clutches of some evil elite or banking cartel. The age of information has guaranteed a faster and tighter centralization. As more and more information and knowledge comes available, it only pushes humanity further and further into the trap and illusion of matter.
Look at the world in the last 100 years and tell me I’m wrong.
Everyone has heard the saying “knowledge is power” but few have stopped to ponder that it is what you do with that knowledge which is meaningful. Never mind the false power paradigm which only leads to suffering. One who has attained a selfless level of knowledge will quickly understand that power is also an illusion.
As such, the age of information only quickens the centralization process by feeding us an overwhelming amount of information which we have no reference point from which to process. The reference point on reality and life in general is negated in an attempt to further centralize humanity for the purpose of sameness. True creativity is compartmentalized to ensure this sameness is maintained.
(It’s my proposition that this compartmentalization is a subconscious process by which the human mind seeks sameness in order to satisfy its own wanton desire. If all are the same than no one is different and everything is okay. The educational system is anything but universal and truthful. Its purpose is knowledge compartmentalized and the promotion of social sameness.)
The education system which is emerging in support of the multilateral financial system and its dominate SDR supra-sovereign currency will captivate the masses with words such as empower, knowledge, purpose, and future. It will make promises of freeing the mind to pursue worthwhile goals that meet our individual aspirations but also serve humanity.
Doesn’t seem so bad.
Except the individual will be sacrificed upon the alter of knowledgeable sameness. Perhaps the centralization process, whether its financial, educational, medical, ideological, theological, or cultural, will simply have to run its course before resetting once again to a de-centralized and more individualistic anchor.
Economic Potential and Modernization
By JC Collins
Also see the post The Dongs Revaluation is Imminent
Vietnam has achieved a truly remarkable thing. While being a dumping ground for U.S. dollar inflation and having its own currency consistently devalued, Vietnam has managed to produce one of the fastest economic expansions and modernizations in the history of the world. It’s a model of modernization built upon the experience and lessons of China, Korea, and other Asian countries which developed before it.
The modernization of Europe and the Americas took centuries. The modernization of China was achieved in approximately 50 years. Compare that to the astonishing modernization which only began in Vietnam in the mid 1990’s. In less than 20 years, the country has turned from a destitute population on the verge of starvation to an expanding middle class that is considered by all economic indicators to be the fastest such expansion in the world.
In true Confucian fashion, Vietnam utilized the tactics of economic warfare deployed against it as a tool of economic development. The exchange rate of the dong was devalued on a continually basis to encourage use of the U.S. dollar within the country. This ensured another market for the dollars inflation to be sent to avoid a hyper-inflation situation back home.
In addition, the Vietnamese understood the economic potential of their resources and trade capability. The strategy was one of patience and long term gain for short term detriment.
Vietnam is much more than the story of an American war of aggression or gold theft. For our purposes here, we will start our brief history with the Multilateral Co-Operation Agreement made between the NATO Countries (except Ireland) in January of 1950. The purpose of this agreement was to control the type and level of trade between the western world and the communist world.
South Vietnam held the largest agricultural potential while the North held most of the heavy industry, such as coal, steel, tin, and phosphate fertilizer. The full potential of the offshore oil and gas fields was still unknown.
There were many reasons for the western involvement in Vietnam which began many years before, with the French, and later America. The threat of communism was a smoke screen for something else which we will not touch on here as the scale of it will only serve to dwarf this essay on currency revaluation. There is also the Yamashita gold theft and recovery attempt which we touched on inAmerica’s Karma and World War Two Gold Theft. During the time period between WW2 and the dissolution of the Soviet Union on December 26, 1991, Vietnam depended on economic subsidies from the larger communist state. When these subsidies ended, trade with the United States became very important for Vietnam.
Over the years there have been many variations of the dong currency with varying exchange rates. The different forms of structure to the dong have been the following:
- Commercial Currency
- Non-Commercial Currency
- Official Rate
- Convertible Currency
- Effective Rate
- Auction Fixing (this structure becomes important in 1991)
It’s too much too breakdown and cover each currency type and its value fluctuations over the years so we will focus in on the important dates and valuations.
On December 18, 1971, after the U.S. dollar devaluation, the official exchange rate of the dong was 2.71 per 1 dollar.
On February 13, 1973, after another U.S. dollar devaluation, the official exchange rate was 2.44 per 1 dollar.
On May 3, 1978, a uniform dong was introduced at an exchange rate of 2.17 per 1 dollar. It’s interesting to note that during this time period the dong to dollar exchange rate was maintained within a narrow margin while the SDR rate for the dong was allowed to fluctuate. This SDR fluctuation was a foreshadowing of things yet to come in our present time. See SDR’s and the New Bretton Woods.
On July 6, 1981 the exchange rate was VND 9.045 per 1 dollar.
On Sept 14, 1985, the State Bank of Vietnam was authorized to issue a new dong currency and withdraw the old ones from circulation. One old dong got you 10 new dong. The new exchange rate was set at 15 dong to 1 dollar.
Devaluation of the dong continued throughout the 1980’s which was actually encouraging what little trade Vietnam participated in.
On March 13, 1989 the multiple currency structure as outlined above was ended and a unified currency structure was put in place. The commercial dong and non-commercial dong were merged and the exchange rate was set at 4500 dong per 1 dollar. This was 9 months before the Berlin Wall began its fall which lead to the eventual collapse of the Soviet Union. Remember that Vietnam depended on subsidies from the U.S.S.R. Perhaps this constitutes a slow transition from subsidies to light import and exports.
On August 30, 1991 there was put in place a method of foreign exchange auction, which was only allowed in U.S. dollars, to support banks and trade organizations helping economic interests needing such foreign exchanges. This move created the inflation dumping grounds for the U.S. dollar.
The rate of the dong today is approximately 21,000 to 1 dollar.
Back in the year 1975 Vietnam wanted to exploit its rich agricultural and timber resources in the South and develop its coal production in the North, as well as producing oil and gas from its offshore fields. Unfortunately for Vietnam they were under a trade embargo from the United States. The Export Administration Act of 1969, amended in 1979, restricted the export and/or re-export of technology which originated in America. The embargo was only on North Vietnam at first but was extended to the South in 1975.
Post war Vietnam is one of only a handful of countries that did not experience a reconstruction boom after hostilities ended. In fact, they experienced a drastic economic deterioration. Through economic sanctions, a ban on imports to Vietnam produced a shortage of foreign exchange capital required for the reconstruction process. Sanctions also lead to extremely high unemployment in the export industries and a reduced industrial capacity.
A similar ban on exports deprived the country of the essential commodities required for development and growth. It also denied Vietnam access to foreign capital markets to raise funds for building factories and other industrial facilities.
Exports to communist countries were considered a violation of America’s strategic interest. The embargo even blocked aid from the International Monetary Fund and the World Bank. Vietnam, to its credit, did the only thing it could do by focusing on exporting natural resources and cheap labor to a handful of countries that stood in violation of the embargo. This was a bare sustenance strategy by Vietnam which did not eliminate starvation and destitution in the country.
Throughout this time period Vietnam was subjected to typhoons, floods, and droughts which served to severely hinder its attempts at food grain production. This weather caused considerable damage to Vietnam’s agricultural lands.
It brings into question the use of weather manipulation weapons which may have been used against the country. For those who doubt the reality of such weapons, I suggest you ask yourself why Defense Secretary William Cohen stated the existence of weather and earthquake causing weapons in his speech given at a 1997 Conference on Terrorism in Athens, GA. I will leave this area to the reader for further exploration.
When the Cold War finally ended many American business interests wanted the sanctions lifted immediately so as to capitalize on the virgin market. But the U.S. would not lift them.
But with the low exchange rate of the dong to dollar, other countries couldn’t resist the lure of doing business in Vietnam and making the windfall on the other end. Countries that began investing in Vietnamese imports and exports were:
- The Netherlands
- South Korea
- Hong Kong
- Japan (unofficially)
It got to be that the United States was the only country that still imposed sanctions on Vietnam. The U.S. dollar was being side stepped in trade by the above countries in areas such as:
- Seafood Processing
- Garment Making
It wasn’t long before the United Stated used its influence and power within the International Monetary Fund to devalue the dong even further while lifting the sanctions. The intent of this move was to ensure that Vietnam’s trade would be balanced in dollars and that the value of the dong would stay low encouraging the Vietnamese people to use the dollar instead of their own currency. This is the blueprint for dollar inflation dumping throughout the world.
The sanctions themselves were lifted in stages:
- December, 1991, travel to Vietnam was allowed.
- October, 1992, allowed for telecommunication links with Vietnam, commercial sales for necessities, as well as lifting restrictions on non-profit organizations and authorized the signing of pre-embargo lifting contracts. (read back door deals for American companies)
On January 27, 1994, the U.S. Senate voted to lift sanctions by a vote of 62 to 38. Clinton officially ended the embargo on February 4, 1994. The reason given was the 2238 MIA soldiers from the war. This was an absurd position as Vietnam itself had over 100,000 missing in action and the country itself was left bombed and destitute.
On October 14, 1994, forex markets began trading the dong against 6 other currencies within a range set by the State Bank of Vietnam. This in essence is the structure that the dong trades within today.
It was a combination of events that lead to the dropping of sanctions. First the collapse of the Soviet Union created an opportunity for Vietnam to get off subsidies and begin real trade. This process was painful but the end results lead to the rest of the world recognizing Vietnam’s true economic growth and development potential, which in turn forced America to lift the embargo for the purpose of ensuring that the dollar wasn’t left out of the trade balancing.
Vietnam in turn accepted the devaluations of the dong as a tactic to attract the foreign investment in its exports and imports. Vietnam’s number one goal was development, modernization, and integration into the world economy.
Today, Vietnam is one of the fastest growing economies in the world. It has the fastest growing middle class and its GDP to debt ratio has been maintained within the 30% to 35% range for years. Its oil and gas fields are being developed, it’s the second largest exporter of rice in the world, Samsung is moving its factories into the country, Starbucks is opening locations, and in fact McDonald’s just opened their first location in the country just last weekend.
The list of economic milestones for Vietnam is growing by the day. The amount of U.S. dollars held in the country’s foreign reserves has been decreasing for the past few years and the import of gold is staggering. As we presented previously, the Shanghai Gold Exchange through agreements with China will increase the gold holdings in many Asian countries by way of gold vault storage and trade agreements. The Vietnamese government itself is making known its intent to monetize all the private gold in the country to support the value of the dong.
The hard working Vietnamese people will require a strong and stable currency to ensure reliable labor energy wealth storage. It’s only a matter of time now before the I.M.F. 2010 Code of Reforms are passed through the U.S. Congress and the Executive Board of the I.M.F. is restructured to reflect the economic reality of the world today. When this happens the dollar will lose its reserve currency status and the dong will be released from it peg. When this happens I would suspect that the value of the dong, not officially recognized today as it has been stretched like elastics, due to the economic growth and develop, and will snap back to its true economic value, which is reflected in those very same growth and development indicators.
What will the rate be? Based on the upcoming SDR composition and allocation system of the International Monetary Fund, who can say with any measure of reliability, there are too many factors which need to be considered and weighed against others factors.
There is one other area where Vietnam has far advanced on the United States. And that is in limiting the rent seeking abilities of the small ruling elite within the country. Trade and business between the provinces within Vietnam have been cleared of corruption for the most part and a system of contested politics is in place. This system of contested politics is very real and not the side show circus of the western world’s political buffoonery. At the end of 2013 Vietnam executed two of the top bankers in the country for corruption and crimes against the people. – JC Collins
The New Exchange Rate System – Posted Feb 19, 2014.
The American Dollar is Dumping Vietnam – Posted May 16, 2014.
Vietnam Seeks Dong Stability as Dollar Nears Collapse – Posted July 1, 2014.
A Global Currency Reset – Posted May 28, 2014.
In Lesson One we reviewed the definition of Capital, the relationship between Savers and Users of Capital, and we learned about Financial Instruments, which act as the Intermediariesbetween Savers and Users
In Lesson Two we reviewed the importance of Capital Markets and the need for Efficient Capital Markets, and why this is important for China and other emerging nations to develop in order for a multilateral framework to work effectively.
What is Capital? The Relationship between Savers and Users. Financial Instruments.
By JC Collins
Within our lives finance and economics are two of the most important things to understand. The effects which finance and economics have upon our lives, both direct and indirect, can be extremely negative if we do not take the time to learn and understand the fundamentals.
Applying that knowledge to our own personal situations can involve risk. But this risk can be minimized with knowledge and comprehension. From that a positive and rewarding experience can be realized and our own individual financial well-being and socioeconomic position can be enhanced.
The intent of the added service of the Fundamentals of Multilateral Investing Series is to provide a base understanding of the investing aspect of finance and economics to POM subscribers. Each segment will be focused on a specific aspect of investing, starting with the basics and working our way into the more complex multilateral subsets.
In this first installment of the Fundamentals of Multilateral Investing Series we will focus on the basic understanding of capital and the source of capital. We will explore the relationship betweenSavers of Capital and Users of Capital.
We will also define the mechanisms (securities, instruments, or intermediaries) which allow for the transfer of capital from Savers toUsers.
In any economy, whether regional, national, or international, there are two types of individuals, or entities. There are the Savers of Capital and there are the Users of Capital.
Capital is wealth.
Here on POM we consider wealth to be the accumulation of human time and labor. This accumulation of human time and labor fits well with the institutional definition of wealth. Wealth is not about what you make but about what you can keep. Therefore, the accumulation of human time and labor would signify an increased ability to keep what we make.
In contrast, not keeping what we make is the opposite of wealth. It is the bleeding of wealth, or human time and labor. Debt is the main cause of our inability to not keep what we make.
Wealth, the accumulation of human time and labor, should be considered Savings.
Capital comes from Savings.
There are three sources of Savings:
The main function of any economy is to transfer capital from Saversto Users for the purpose of economic growth. There are two methods of transferring Capital from Savers to Users:
- Direct Investments (these are Real Assets)
And then they carried the water to the well.
2. Indirect Investments (these are Financial Instruments/Claims)
Savers of Capital will invest in Indirect Investments which act as financial instruments and financial intermediaries to transfer savings to the Users of Capital. These are the mechanisms which function at the core of any financial and economic framework.
Users of Capital will then use those savings to invest in Real Assets, such as commercial and residential real estate, infrastructure development, business, etc. One of the fundamental purposes for the existence of capital is this investing in productive assets, which promotes economic growth.
The only source of capital is Savings, or the accumulation of human time and labor. As such, Savers become investors. There are three types of investors:
- Retail Investors
- Institutional Investors
- Foreign Investors
All three types of investors will make up the composition of multilateral investments.
Users of capital, the target of the investors described above, consist of individuals, business, and governments. Each are segmented as follows:
- Individuals (Individual users of capital do not issue securities and pledge real assets as collateral.)
a. Stocks (equity)
b. Debt (both long-term and short-term)
- Bonds (secured)
- Debentures (unsecured)
- State or Provincial
As previously mentioned, capital is transferred from Savers toUsers. Financial Instruments/Claims are used to facilitate this allocation of Indirect Investments. (Keeping in mind that Direct Investments consist of Real Assets, such as real estate, equipment, and even gold.) There are different types of Financial Instruments,which are segmented into the two categories of Publically Traded Securities and Privately Traded Securities. Each are broken out into the following sub-categories:
Publically Traded Securities, or financial instruments/claims, are as follows:
- Debt (fixed income)
- Commercial Paper
2. Equity (stocks)
3. Investment Funds
- Mutual Funds
5. Other Securities consist of:
- ETF’s (Exchange Traded Funds)
- Linked Notes
Privately Traded Securities, or financial instruments/claims, are as follows:
In the initial parts of this series we will mainly focus on thePublically Traded Securities, as this offers the best source of opportunity for the average Retail Investor. For now we will just touch on the sources of Privately Traded Securities, which are as follows:
- Investors (angel)
- Venture Capital
- Private Equity
Sources of savings for the three listed types of Privately Traded Securities include:
- Pension Funds
- High Net Worth individuals
The reason any of the above three would invest in Privately Traded Securities over Publically Traded Securities is because of increased returns, or what is known as Return Enhancement. But with Return Enhancement comes increased risk.
The types of investment which can be made under Privately Traded Securities are the following:
- Leveraged Buyouts – Private equity would be the only source for this form of investing.
- Growth Capital
- Early Stage – Angel investors and venture capital would be the two sources of investment.
- Late Stage – Venture capital and private equity would be the two sources of investment.
3. Turnarounds – Private equity would be the only source of investment.
4. Distressed Debt – Private equity would be the only source of investment.
In Lesson Two we will review Capital Markets and the need forEfficient Capital Markets. The need for a Multilateral Monetary Framework is to promote a broader and more diverse Efficient Capital Market. Capital Markets have become inefficient because of the imbalances in the existing USD based unipolar monetary framework. This transition from a unipolar system to a multilateral system is one of the least understood aspects of what is happening in the monetary and financial world today. – JC
Capital Markets and the Development of Efficient Capital Markets
By JC Collins
In Lesson One we reviewed the definition of Capital, the relationship between Savers and Users of Capital, and we learned about Financial Instruments, which act as the Intermediariesbetween Savers and Users. In Lesson Two we are going to review the importance of Capital Markets and the need for Efficient Capital Markets.
First, there are multiple types of Capital Markets. There are:
- Stock Markets
- Bond Markets
- Money Markets
These can be further defined by the following:
- Auction Market – Investors
- Dealer Markets – Financial Institutions
We will review these in more detail below.
What does it mean to have efficient markets? There are a few main components that are necessary for any market to be considered efficient. The first two are:
- Fast paced transactions.
- Low cost of transactions.
Both of these are required for there to be liquidity in any market. Market liquidity can be further defined as the effect of frequent trading or sales, narrow spreads between bid price and ask price (Auction Market), as well as minimum price variations from sale to sale.
The other main component of any efficient market is Regulation, which we will discuss in another lesson.
The market types as defined above, being stock markets, bond markets, and money markets, can be further segmented. The first of these segments is the Primary Market, which can be further broken down into the following:
- New Securities – Indirect financial assets which are sold for the first time, such as Initial Public Offerings (IPO).
- Government Bonds – new bond issuance.
- Corporate Bonds – new bond issuance.
Remember from Lesson One that governments and business areUsers of Capital. They offer the purchase of bonds to investors, orSavers of Capital. As such, in a Primary Market the capital flows from the investor to the company or government.
Governments and companies raise funds by tapping into thePrimary Market.
The other segment we need to consider is the Secondary Market. This is where already issued securities are traded between investors. The Secondary Market does not contain new issuance of indirect assets, and trades are made between investors.
The best way to understand this is that in Primary Markets capital flows from Savers to Users. In the Secondary Market capital flows between Saver and Saver.
As mentioned above, all markets, whether bond markets, money markets, or stock markets, can also fall under either Auction Markets or Dealer Markets.
Auction Markets are made up of investors and are done on exchanges, or competitive bidding. Investors enter Bids and Offersfor securities.
Bids are considered to be the highest buyer.
Offers are considered to be the lowest seller.
The difference between them is called the Spread.
Note: Auction Markets are made up of Publically Traded Securities. Reference Lesson One for a review of Publically Traded Securities.
Stock exchanges such as the NYSE and TSX are Auction Markets. They are made up of senior equities, junior securities, futures/options, and other exchange based securities.
Dealer Markets consist of financial institutions. These “Dealers” trade with one another and compete with the exchanges in theAuction Markets. Dealer Markets are negotiated as opposed to defined through competitive bidding.
Mostly being used by institutional investors, the Dealer Markets are made up of bonds and debentures, with some equities and customized derivatives.
The above information is important to understand as the difference between the developed nations, or economies, which have largely dominated the international monetary system for decades, already have mature and Efficient Capital Markets.
At least in theory.
Some of the inefficiency which has developed in these markets are because of the systemic imbalances within the international monetary framework.
Which is why it has become extremely important for the multilateral monetary framework to take over piecemeal from the old unipolar framework.
The emerging economies, such as China and India, among many others, need to develop mature and efficient markets in order to facilitate the balancing of the international monetary system. This is a strategy which is taking years to implement, and must be evolved with patience and care.
Understanding the fundamentals of Capital Markets can help us understand some of the domestic strategies which China is implementing in order to further develop its own markets. These markets will facilitate the internationalization of the renminbi and increase its fiscal liberalization.
In Lesson Three we will review Financial Intermediaries, which serve the purpose of bringing Savers and Users of Capital together. We will broaden our understanding of why it is important for China to further develop its RMB denominated Financial Intermediariesfor the purpose of creating Efficient RMB Capital Markets to work alongside USD denominated Capital Markets. – JC
Financial Intermediaries and Expanding RMB Capital Markets
In Lesson Three we will further review Financial Intermediaries, which serve the purpose of bringing Savers and Users of Capital together. We will broaden our understanding of why it is important for China to further develop its RMB denominated Financial Intermediaries for the purpose of creating Efficient RMB Capital Markets to work alongside USD denominated Capital Markets.
It is important to remember the differences between the Primary Market and the Secondary Market as we move forward. For a quick review, the Primary Market deals with new issuance of securities, while the Secondary Market deals with already issued securities.
The full integrated financial market will consist of both the Primaryand Secondary Markets, as well as Institutional Investors andRetail Investors. Remember in Lesson One that Institutional Investors can consist of such Privately Traded Securities as pension funds and endowments.
A good method of remembering this is by segmenting each into blocks. Institutional Investors can deal in both the Primary (new issuance) Market and the Secondary (already issued) Markets, whileRetail Investors (you and me) can only deal in the Secondary market.
Now let’s look closer at some of the Financial Intermediaries, thoseDealers which facilitate the process of transferring Capital fromSavers to Users.
First, and largely, there are Investment Dealers. These Dealers can service two positions. In one position they act as a Principle and in another position they act as an Agent.
As a Principle the Dealer will maintain ownership over the security and realize a gain and loss over time. There are three areas which are the focus of the Principle Dealer:
- Proprietary Trading
Underwriting facilitates the process of transferring securities from the Primary Market to the Secondary Market. As a Dealer function, building and maintaining Inventory adds liquidity. This will be a vital component of building broader renminbi liquidity in the international system.
As an Agent, the Dealer takes no ownership over the security and charges commission on all Secondary Market transactions.
Another type of Dealer of Financial Intermediaries are Banks. AllBanks serve under whatever national bank act regulates each nation. As a part of the multilateral transition there are supra-sovereign banking regulations which have to be implemented in each region and nation. The Basel 3 Regulations of the Bank for International Settlements serve in this function.
The Bank Acts, or Bank Regulations of most nations will consist of those banks which are incorporated within the nation, foreign bank subsidiaries which are incorporated in a nation, and foreign banks which only operate branches in a specific nation.
Trust Companies also serve as Financial Intermediaries by taking on most of the services of a retail bank, such as mortgages, but also acting as a trustee for private individuals or corporations.
Credit Unions are another form of Financial Intermediary. These institutions have members as opposed to clients. Under nation specific credit cooperative legislation, Credit Unions are limited to offering financial services to members only.
Insurance Companies can also serve as Financial Intermediaries. As most know, insurance covers life and property, and serves the purpose of a trustee for funds from policy holders.
The rebalancing of the international monetary system will require a major alignment of independent financial systems of the major nations. This alignment will require such legislation as the Basel 3 Regulations of the BIS, as well as the 2010 Quota and Governance Reforms of the International Monetary Fund.
China, now the world’s largest economy (at least second), has an underdeveloped financial system which needs to be evolved based on the liberalization of the renminbi and its rise to reserve status alongside the US dollar. All of the items we are covering in this series are meant to help us understand our own domestic financial frameworks, as well as the changes which are taking place in the financial markets of China, India, and other emerging nations.
Each piece will build on the piece before, and readers will gain a more in-depth understanding of the other material which is presented here on POM. For those interested in gaining a broader understanding of the Chinese financial system, the Brooking Institute recently (from a monetary change point of view) published an overview and introduction.
In the next installment of The Fundamentals of Multilateral Investing series we will begin reviewing financial regulation in more detail. As the Basel 3 Regulations would suggest, a broader and deeper regulation of the world’s financial markets will be an important aspect of the multilateral monetary framework. – JC
HOW CHINA IS USING THE SDR TO REDUCE AMERICAN SOVEREIGNTY
After the financial crisis back in 2008 monetary and fiscal planners around the world became increasingly concerned about the effects of the Triffin Paradox. The large accumulation of US dollars in the foreign exchange reserve accounts around the world forced discussions on dollar alternatives and paths forward which could be taken to rebalance the international monetary framework.
The two major players in these discussions were the United States and China, both of whom play opposing and diametric positions within the international system, with the International Monetary Fund acting as the pivot point.
This emblematic relationship between the United States and China is reflective of the imbalances in the international monetary system. China has consistently grown large surpluses year over year and has achieved the same with its foreign exchange reserves. A large percentage of these reserves have been invested in US Treasury Bonds.
For America’s part, large and persistent current account deficits have contributed to the growth of substantial foreign debt. Trump recently discussed this in his Indiana victory speech by repeating the phrase “debtor nation”, driving home the point to the American people that something has to change.
In essence, developing, or emerging nations are transferring reserves to the US and other industrialized countries. This money is lent at low interest rates which allow the developed nations to live beyond their means and import for mass consumption.
The problem with this monetary system is that creditor nations, like China, become increasingly worried about the large investment they have made into the US dollar. Future loss of dollar value and a lack of alternative liquidity on a global scale have forced the majority of the world to side with China and other BRICS nations to seek a new framework through the IMF and the broader use of the Special Drawing Right.
The United States, now a debtor nation as Trump stated, has no choice but to relinquish control and power to a growing international consortium of concerned countries and institutions. The large debt leverage which the rest of the world holds over America has forced a reluctant US government and Treasury department, along with the Federal Reserve, too enact monetary policies which are driving towards this ultimate rebalancing.
The International Monetary Fund will be the driver, and the SDR will be the vehicle. China, the representative of all emerging nations, is providing the fuel. But the large amount of US debt held around the world also gives America some bargaining power, which is why the necessary adjustments to the system have dragged out for years since the financial crisis.
Some obvious geopolitical checkmates have developed and the position of the US as the sole superpower in the world has been forever compromised.
In order for there to be an alternative multilateral monetary framework based on the SDR, some fundamental changes had to take place.
- The composition of the SDR basket had to change and the Chinese renminbi would have to be added. This has been completed and the new composition comes into effect this October.
- Reform of the IMF. This has been completed with the implementation of the 2010 Quota and Governance Reforms.
- An increase in SDR allocations. This will be forthcoming once the basket composition is put into effect.
- Large issuance of SDR denominated bonds. This is also forthcoming with both China and the G20 stating that SDR denominated bonds are on the horizon. The People’s Bank of China has communicated their intent to issue these bonds.
The IMF and the G20 are currently working on a plan to broaden the use of the SDR, which will include the above items, two of which have already been implemented. The other two will happen in a short period of time.
This will all likely take the form of an open-ended SDR denominated fund which will allow for convertibility between SDR and the reserve currencies in the basket. This will require IMF member countries to entrust a large portion of their foreign exchange reserves to the IMF. These reserves will be managed through a centralized process based on the open-ended SDR denominated fund.
Transferring large portions of foreign exchange reserves to the IMF is problematic on the domestic level. It amounts to a loss of sovereignty by member nations. Each country will address this issue differently, but there will be a need to sell such a program to the masses through a type of nationalism, such as Trump is doing while campaigning for the Presidency in the US.
China, and other BRICS nations, have America over a barrel. The accumulation of US dollars and the large US debt load has created the situation required to consolidate the international monetary system further and reduce sovereignty. The US has some bargaining power but the dye has been cast.
China was the first one to suggest a broader role for the SDR and the IMF, and its movements today are indicative of the continuation of that methodology. This is very reflective of why both China and Russia, along with Iran, are taking such prominent positions within the geopolitical world.
A TRUMP DEAL ON AMERICA’S BANKRUPTCY
SDR Reserves and SDRM Debt Restructuring
The recent proclamations by Trump regarding America’s debt and the potential of a bankruptcy are the early shots in a negotiating process which will restructure US sovereign debt and move the world towards the multilateral framework.
Most mainstream media are expressing dismay at Trumps statements and stating that this is further evidence he does not understand the complexity of international monetary workings. But what is not being considered is that the threat of American bankruptcy is pre-positioning for the big show next year.
This is when the international community will begin the process of deeper and broader sovereign debt restructuring discussions. Trumps flippant remarks should not be taken out of context. There is a reason he keeps telling us that he is a deal maker.
Along with transferring foreign exchange reserves to the International Monetary Fund, as reviewed in the post above ( How China is using the SDR to reduce American Sovereignty), there will be a method of sovereign debt restructuring. This restructuring can take a few different paths forward.
One process involves CAC’s, or Collective Action Clauses. This is the favored methodology of the United States. The other is the SDRM of the IMF. The Sovereign Debt Restructuring Mechanism will likely be the core process by which international sovereign debt is considered and restructured.
The broader use of the SDR will provide the base for SDRM negotiations. While America is more interested I the CAC methodology, the need to transfer reserves to the IMF to support an expansion of SDR liquidity will force the use of the SDRM.
The complex nature of sovereign debt restructuring needs to be communicated to the masses through simple sound bits. Something which Trump is more than willing to accommodate. But for those interest I posted an article over a year ago which further defined both CAC’s and the SDRM process. That material is reposted in its entirety below.
Keep these concepts in mind as you listen to the news and the statements of Trump and other US representatives.
The Sovereign Debt Complex – How China and America Are Waging a Quiet War over Sovereign Debt Restructuring
The most pressing issuing facing the international monetary order today is the threat of sovereign debt defaults and the loss of confidence in sovereign bonds. The sovereign debt crisis is growing at a brisk pace with most of the attention on Greece. But many other countries could quickly slide into the limelight and steal the show. Some of these countries are Spain, Italy, Ireland, and even the United States.
America could find itself in a situation where the world is no longer willing to finance its large account deficits and leave the reserve role of the USD without any international support. There are many reasons why this would not happen, none more so than to avoid the loss of value on foreign assets which countries like China are heavily invested in.
Being the number one challenge facing the global financial framework, the determination can be made that all other issues, such as RMB internationalization and SDR composition, are sublets which will be required in order to facilitate an orderly and sustainable sovereign debt restructuring process.
The reform of international institutions, such as the IMF, are also a necessary component of addressing the treat of a sovereign debt crisis. Governance reforms, such as the 2010 IMF Quota and Governance Reforms (2010QGR), are meant to more broadly recognize the emergence of developing countries, such as China and India. The purpose is to give them a more balanced representation within the International Monetary Fund, leading to a sustainable process of sovereign debt restructuring.
There are two much discussed methods of sovereign debt restructuring. One is called Collective Action Clauses (CAC), which is a more market oriented solution desired by private investors and some sovereigns, such as the United States and Japan. The US would seek a market oriented solution such as CAC’s because of the market dominance of the dollar. Emerging markets, like China, are concerned about the negative market effects of a CAC, based on increased costs and further currency debasement.
The other is the Sovereign Debt Restructuring Mechanism (SDRM), of the International Monetary Fund. The SDRM, or a modified version of the SDRM, is a structural (non-market) solution to sovereign debt, which is desired by China, and other emerging economies. The obvious nature of the non-market structural changes involved with the SDRM process does not give the largest debtor nation, America, the ability to leverage the process against the needs of the developing countries which largely hold US debt, such as China.
With the United States supporting a market oriented CAC solution to sovereign debt, and China supporting a structural SDRM solution, the delays continue and the world is pushed closer to an all-out sovereign debt crisis with large economies getting closer to defaulting, such as Greece.
Both nations account for the largest borrower and lender sovereigns in the international monetary system. China is on the extreme lender spectrum, while America is on the extreme borrow spectrum. Borrower and lender nations are equally responsible for the level of sovereign debt in the world, and all should share the burden in seeking sustainable resolutions.
America, and select investors in USD denominated assets, are the main detractors to an SDRM structural solution. The reasons have as much to do with value retention of dollar securities as they do with the loss of monetary sovereignty to an international institution such as the IMF. For other countries, they have lost value on domestic currency and assets, while also giving up monetary sovereignty to the United States.
This diametric foretells the demand and need for a multilateral framework, as an ever increasing deficit of the US cannot be sustained indefinitely. The American debt ceiling and deficit will again be debated in Congress this October. The function of raising the debt ceiling will be directly related to the United States ability to get the rest of the world to continue sustaining the role of the dollar.
The International Monetary Fund is being pulled in both directions of CAC and SDRM, as America and China use political leverage and economic interdependency in attempts to push the solution. The IMF will ultimately seek the sustainability of 2010QGR and SDRM, which is supported by the funds official statements surrounding reforms and the addition of the RMB to the Special Drawing Rights composition this October.
The United States is resisting both 2010QGR and the RMB’s inclusion into the SDR basket. There are many reasons for this. When the RMB is added to the SDR, the internationalization of the Chinese currency will increase dramatically as the renminbi liquidity market explodes. This increase in RMB market liquidity will be measured along a decrease in USD market liquidity. Eventually both markets will balance with one another. Parallel currencies as it were.
This decrease in USD market liquidity will make the function of a CAC sovereign debt solution less likely, as the CAC process being promoted by USD interests will lose the dollar liquidity which makes a CAC process beneficial for them in the first place.
So, the addition of the RMB to the SDR this October, which comes into effect on January 1, 2016, will expand Chinese currency market liquidity while decreasing American currency market liquidity. This will in turn make a CAC sovereign debt solution unworkable, which will leave a version of SDRM solution as the only viable alternative. This alternative will also include the use of substitution accounts, which we have widely reviewed here on POM in many previous articles. These accounts will ensure that no loss of asset value will occur during the transition from USD denominated assets to RMB and SDR denominated assets.
On the geopolitical front, the world is witnessing a wide array of regional and international crisis which all have the United States at the center. The reasons for this are partially understood by the logic and information presented above.
To expand on that, it is important to understand that the United States uses political, diplomatic, and military means to secure lending from other countries, and ensuring that USD dominance is maintained as a means to continue the deficit spending at home. In addition, in cases where America is the creditor nation, it uses domestic laws to maximize its interests and create undue hardship and leverage on the borrower nations. This hardship will usually take the form of resource allocation and deposit development by Western corporations.
The fixed and semi-fixed exchange rates which the dollar has with the currencies of Asian countries like China, Vietnam, and others, has also allowed the United States to finance its large account deficits. It is probable that if the RMB is included in the SDR, China may end the managed peg with the dollar, which would cause an instant and dramatic effect on America’s ability to raise the debt ceiling in October and continue its policy of deficit spending.
Recently the tension in the South China Sea has picked up as the United States is attempting to intimidate and stop China from projecting its influence in the region. China is obviously building stationary and fixed equivalents to American air craft carrier groups in the disputed islands area. These “carrier groups” cannot be sunk and will give China a tremendous naval advantage.
If China can successfully cut the United States out of the South China Sea, then it would put immense pressure on Japan, another larger holder of US debt, to support the SDRM solution to sovereign debt restructuring. Japan, a country on the verge of its own sovereign debt crisis, much like Greece, cannot hold out much longer before a solution will need to be implemented. Both Japan and Greece will take the world with it, including China and the United States.
Let’s take a closer look at the process of addressing the sovereign debt situation.
China, as a major international creditor, and now largest economy on Earth, needs to be directly involved in any sovereign debt restructuring mechanism, whether it is the market oriented CAC or structural reforms of an SDRM.
Chinese policy makers are supportive of reforms to the international monetary institutions, such as the IMF and 2010QGR, and the SDRM process. Along with structural sovereign debt solutions, China encourages a reduction in excessive borrowing and lending to support the management of sustainable debt in the future.
Along with that, China’s other main concern is to maintain the value of its foreign assets, such as USD denominated bonds. Use of the SDRM and substitution accounts will be an important aspect of this wealth retention for China.
So, China will support an SDRM process which is based on a balanced representation and governance within the IMF which takes into account the importance of the emerging markets. It is these markets which have carried the bulk of US debt and deficit spending.
The SDRM process will require RMB market liquidity and the implementation of 2010QGR, or a version which is similar. The inclusion of the RMB in the SDR composition will also be required. But could the RMB be included in the SDR while still maintaining the managed peg to the USD? This would allow for an increase in RMB market liquidity and still give the USD the dominant position internationally. America could be negotiating exactly this position as it faces the inevitability of an expansion of RMB market liquidity.
The internationalization of the renminbi began in 2002 when Hong Kong asset managers were given permission to begin buying and selling RMB denominated exchange-traded securities in China. Since that time the internationalization picked up pace and is now somewhat substantial based on the diversity of Bi-Lateral Swap Agreements (BSA) which the People’s Bank of China has established with central banks all around the world, and the establishment of the BRICS Development Bank and Asian Infrastructure Investment Bank.
RMB denominated gold funds through the Shanghai Gold Exchange is another method which China is expanding RMB market liquidity. This gold fund will help China manage a sustainable capital account liberalization which will be difficult to manipulate from external foreign sources. This SGE RMB gold fund does not support the thesis of some analysts which suggest China is overthrowing the western banking system by starting a central bank for gold. This article alone should strongly support the errors in such alarmist conclusions.
The full internationalization of the RMB will be achieved when it is functioning as an international unit of account, means of payment, and store of value. This status of internationalization will require a deep and liquid financial market, which is being realized by the implementation of such functions as the SGE and BSA’s. This will foster off-shore financial centers to support RMB denominated transactions.
The forthcoming Asian trade agreement, AEC, will also further broaden RMB market liquidity. The AEC comes into effect on January 1, 2016, the same date as the updated SDR composition.
For all of this, RMB capital account liberalization and internationalization needs to be accelerated if the sovereign debt crisis is to be averted. But caution needs to be considered as an acceleration of RMB internationalization could potentially expose the international financial system to greater risk if not handled in a methodical manner and through agreements with all countries, including the United States.
If the RMB is not included in the SDR, and IMF 2010QGR is not implemented when Chinese financial markets are fully liberalized, leading to the opening of the capital account of the balance of payments, the risk to the international financial system could exceed the risks which exist today. The sovereign debt crisis would not have been effectively addressed and no agreed upon multilateral solution would have been implemented.
Removing the remaining restrictions on the use of RMB for international transactions, which the SDR and 2010QGR would achieve, will also force Chinese policy makers to implement a more flexible exchange rate in order to accommodate the larger volumes of RMB financial flows.
This is likely why the United States is leveraging to agree on structural reforms but not allow the RMB to become a part of the SDR composition. If both reforms and SDR inclusion are achieved, it will all but ensure that the managed peg to the dollar will have to end. Which in turn will prevent America from continuing its current level of deficit spending.
Vietnam has also made it clear that they could potentially end the fixed peg to the USD and peg to their largest trading partner China. In such a situation, and under the AEC trade agreement, other Asian countries will follow, leaving the USD with dramatically reduced market liquidity.
The United States is caught in a situation in which it requires the rest of the world to facilitate the orderly transition out of the global sovereign debt crisis. Yet, in order to do so it must give up much of the financial and monetary power and leverage which it has wielded over the last 70 years.
The sovereign debt crisis, which is really a lack of confidence in sovereign bonds, will continue to affect all countries. The threat of complete collapse of the bond markets should be enough to push both private investors and sovereign countries to agree on institutional reform and a restructuring method, such as the SDRM. The CAC market oriented solution which America favors will only continue the systemic imbalances which have been partially responsible for creating the situation in the first place.
If an agreement on these matters cannot be reached, the world could very well be heading for a sovereign debt implosion. Let’s hope that cooler heads prevail and a new multilateral framework can be implemented for the benefit of all countries and people.
Will there be another economic crisis with the next Presidential Election?
The Big Short
Iran calls on U.S., EU to help it access global financial system
Iran on Friday called on the United States and the European Union to help it access the global financial system, including assets that Tehran says were supposed to be unfrozen following its historic nuclear deal with major international powers.
“They need to do whatever is needed to honor their commitments,” Iranian central bank Governor Valiollah Seif said at an event on the sidelines of the International Monetary Fund and World Bank spring meetings in Washington.
“Otherwise the JCPOA (Iran nuclear deal) breaks up under its own terms,” he said.
Seif met with U.S. Treasury Secretary Jack Lew on Thursday and said they discussed Iran’s expectations under the July 2015 nuclear agreement. Under that deal, Iran agreed to limit its nuclear program in exchange for improved access to the global economy, including the dropping of certain economic sanctions.
Lew told Seif at that meeting that the United States would keep meeting “its sanctions-related commitments in good faith” as long as Iran continues to uphold its end of the bargain, a Treasury official said in a statement.
Iran is increasingly exacerbated that few trade deals are going through as foreign banks shy away from processing transactions with the country even after the nuclear-related sanctions were lifted.
“In general we are not able to use our frozen funds abroad,” Seif said.
Iranian hopes of rapidly ending the country’s economic isolation are fading as European banks in particular, some of which have already been hit by hit huge U.S. fines for sanctions busting, fear falling afoul of the many other restrictions imposed by Washington that remain in force.
“We want both sides of this agreement, especially the U.S., to take the required measures to remove the obstacles,” Seif said.
He urged Iran’s partners in the deal to hold more “face-to-face contacts” with international bankers to assure them they won’t be penalized for working with Tehran. He said the United States needed to make changes to its laws and regulations to give Iran access to the U.S. financial system.
U.S. banks are still forbidden to do business with Iran. While lenders based elsewhere are not covered by this ban, major problems remain, mainly rules prohibiting transactions in dollars from being processed through the U.S. financial system.
(Reporting by Jason Lange; Editing by Paul Simao)
White House Response: Access to global financial system not part of Iran nuclear deal
An agreement with Iran aimed at preventing it from developing nuclear weapons does not include giving it access to the global financial system, the White House said on Friday.
The comment from a White House spokesman at a regular news briefing followed a request by Iran’s central bank governor earlier on Friday for the United States and European Union to help Iran access to the global financial system.
(Reporting by Roberta Rampton; Editing by Chizu Nomiyama)
The United States says the Iran nuclear deal does not include any provision that allows the Islamic Republic to have access to the US financial system.
The deal, known as the Joint Comprehensive Plan of Action (JCPOA), was struck between Iran and the P5+1 – the United States, France, Britain, China, Russia and Germany – on July 4, 2015.
After the two sides started to implement the JCPOA on January 16, all nuclear-related sanctions imposed on Tehran by the European Union, the Security Council and the US were lifted. Iran has, in return, put some limitations on its nuclear activities.
On Friday, White House Press Secretary Josh Earnest said “the agreement that’s included in the JCPOA does not include giving Iran access to the US financial system or to allow the execution of so-called U-turn transactions.”
Earnest’s remarks came after Head of Iran’s Central Bank Valiollah Seif, who is in Washington for the spring meetings of the International Monetary Fund and the World Bank, said earlier in the day that the US and its European allies “need to do whatever is needed to honor their commitments.”
“If it means more face-to-face contacts with the international banks assuring them they do not penalize them working in Iran, if it means making changes to the laws and regulations to give access to the US financial systems — allow U-turn, whatever is needed — they need to do,” Seif added.
Earnest said that “the United States, along with the rest of the international community, is committed to living up to our end of the bargain.”
In addition, US State Department spokesman John Kirby said Washington has already fulfilled its part of the nuclear deal.
“There is no need to do more, when we have met all of our commitments,” Kirby told reporters later in the day.
On April 6, US Secretary of State John Kerry said that Iran deserves access to the US financial system because it had met its obligations under the nuclear agreement.
“It’s fair for Iran to get what it deserves because it kept its part of the bargain to date, with respect to the nuclear agreement,” Kerry said during an interview on MSNBC.
US banks are still banned from dealing with Iran as part of an old US trade embargo that still remains in place. Accordingly, this is believed to have already effectively blocked any transactions with Iran which is based on US dollars because they would ultimately have to be cleared in the US.
Indications had been specifically growing lately that a legacy of hefty fines by the US on banks that are caught for violating Iran sanctions is deterring businesses from trading with Iran.
Meanwhile, Republicans have charged the Obama administration with trying to allow dollar-denominated transactions with Iran that are done through foreign banks, and say that concession goes against the will of Congress.
Last month, a group of US Republican senators also introduced legislation to impose new sanctions against Iran over what legislators have described as Tehran’s “support for terrorism and human rights violations,” accusations that have been vehemently denied by Iran.
“Mad Prophet of the Airwaves” Howard Beale (Peter Finch) “we deal in illusions” speech.
Because less than three percent of you people read books. Because less than fifteen percent of you read newspapers. Because the only truth you know is what you get over this tube. Right now, there is a whole, an entire generation that never knew anything that didn’t come out of this tube. This tube is the Gospel. The ultimate revelation! This tube can make or break Presidents, Popes, Prime Ministers. This tube is the most awesome, god-damn force in the whole godless world. And woe is us if it ever falls into the hands of the wrong people.
And when the twelfth largest company in the world controls the most awesome, god-damn propaganda force in the whole godless world, who knows what s–t will be peddled for truth on this network.
So, you listen to me. Listen to me! Television is not the truth. Television’s a god-damned amusement park. Television is a circus, a carnival, a travelling troupe of acrobats, storytellers, dancers, singers, jugglers, sideshow freaks, lion tamers, and football players. We’re in the boredom-killing business. So if you want the Truth, go to God! Go to your gurus. Go to yourselves! Because that’s the only place you’re ever gonna find any real truth. But, man, you’re never gonna get any truth from us. We’ll tell you anything you wanna hear. We lie like hell. We’ll tell you that, uh, Kojak always gets the killer and that nobody ever gets cancer at Archie Bunker’s house. And no matter how much trouble the hero is in, don’t worry. Just look at your watch. At the end of the hour, he’s gonna win. We’ll tell you any s–t you want to hear.
We deal in illusions, man. None of it is true! But you people sit there day after day, night after night, all ages, colours, creeds. We’re all you know. You’re beginning to believe the illusions we’re spinning here. You’re beginning to think that the tube is reality and that your own lives are unreal. You do whatever the tube tells you. You dress like the tube, you eat like the tube, you raise your children like the tube. You even think like the tube. This is mass madness. You maniacs. In God’s name, you people are the real thing. We are the illusion. So turn off your television sets. Turn them off now. Turn them off right now. Turn them off and leave them off. Turn them off right in the middle of this sentence I am speaking to you now. Turn them off!!!
I am on twitter @DefendingtheUSA – Never mind the lies and distortion of the corrupt Liberal Media. This time, the American People will follow the truth.
ADAPTED from Crippled America by Donald J. Trump
This audio-book will explore Trump’s view on key issues including the economy, big CEO salaries and taxes, health care, education, national security, and social issues. Of particular interest will be his vision for complete immigration reform, beginning with securing the borders and putting American workers first.
Blowin Free (1973)
Iron Butterfly 2012 (THE FINAL PERFORMANCE) with Original founding members (In a Gadda da Vida)
Lee Dorman, bassist for Iron Butterfly, died on Friday December 21, 2012 at the age of 70, the Associated Press reports. According to a spokesman for the Orange County Sheriff’s Department, Dorman was found dead in a vehicle on Friday morning and may have been on his way to a doctor’s appointment.
Dorman was born in St. Louis, Missouri, in 1942. He joined the Southern California-based Iron Butterfly for its second and best-known album, In-a-Gadda-Da-Vida, which was released in 1968. The 17-minute title track helped the album sell more than 30 million copies, and a three-minute version of the song became a Top 40 hit.
2012 In Memoriam: Musicians We Lost
During Iron Butterfly’s temporary break-up in the 1970s, Dorman and guitarist Larry Reinhardt formed the metal-jazz fusion band Captain Beyond, with Rod Evans from Deep Purple. The group released three albums and had a radio hit with the 1973 song “Sufficiently Breathless.”
Iron Butterfly 2012 (In A Gada Da Vida) Preformance at The Mt. Tabor Theatre Portland Oregon with Founding Members Lee Doorman (Bass Guitar) and Ron Bushy (Drums)
Metal-Jazz Fusion band: Captain Beyond
Forrest Gump, made in 1994, is heartbreaking, odd, and beautiful. Breath taking performances by a stellar cast of actors guarantees this film to be a delight every time.
1/25. Bill Murray, John Travolta and Chevy Chase turned down the role of Forrest Gump. Travolta later admitted that passing on the role was a mistake.
2/25. Tom Hanks’ younger brother Jim Hanks doubled for him in many of his numerous running sequences.
3/25. Tom Hanks signed onto the film after an hour and a half of reading the script but agreed only to take the role if the film was historically accurate. He initially wanted to ease Forrest’s pronounced Southern accent, but was eventually persuaded by director Robert Zemeckis to portray the heavy accent stressed in the novel and patterned his accent after Michael Conner Humphreys (young Forrest) who actually talked that way.
4/25. Tom Hanks wasn’t paid for the film. Instead he took percentage points which ultimately netted him in the region of $40 million.
5/25. When Forrest gets up to talk at the Vietnam rally in Washington, the microphone plug is pulled and you cannot hear him. According to Tom Hanks, he says, “Sometimes when people go to Vietnam, they go home to their mommas without any legs. Sometimes they don’t go home at all. That’s a bad thing. That’s all I have to say about that.”
6/25. The line, “My name is Forrest Gump. People call me Forrest Gump,” was ad libbed by Tom Hanks while filming the scene. Director Robert Zemeckis liked it so much that he decided to keep it in
7/25. With every transition of Forrest’s age, one thing remains the same – in the first scene of each transition he wears a blue plaid shirt.
8/25. Forrest and Dan’s Shrimp Emporium “Bubba Gump”, is now a themed restaurant in 33 locations around the world in the U.S., Japan, China, Mexico, Malaysia, Philippines, Indonesia and the UK. There is one in Orlando, Florida, at the entrance to the Universal theme parks, at the Anaheim Gardenwalk in walking distance from Disneyland Park in Anaheim, California in the Los Angeles area and at Pleasure Pier in Galveston, Texas.
9/25. When Forrest first learns to play ping-pong in the infirmary, he is told the trick is to “keep his eye on the ball” by another soldier. After that moment, whenever he is shown playing ping-pong, he never blinks.
10/25. The actor who plays the reporter on the scene when Tom Hanks visits Washington DC after his tour in Vietnam was, himself, an actual tourist from Atlanta, Georgia. He happened to be on Capitol Hill that day with his wife, and was asked to read.
11/25. Many of the extras in the hippie scene were actors from the Maryland Renaissance Festival, since the casting director Ellen Lewis realized that would be a good source of performers with long hair.
12/25. Gary Sinise’s lower legs were wrapped in a special blue fabric that allowed them to be digitally removed later.
13/25. During the ping-pong matches, there was no ball; it was entirely CGI, animated to meet the actors’ paddles.
14/25. The running scene was inspired by an actual event. In 1982, Louis Michael Figueroa, aged 16, ran from New Jersey to San Francisco for the American Cancer Society, unknowingly inspiring a line for Forrest Gump’s famous run on the silver screen. “I just put one foot in front of the other,” it goes. “When I get tired I sleep. When I get hungry I eat. When I have to go to the bathroom, I go.”
15/25. The park bench that Tom Hanks sat on for much of the movie was located in historic Savannah, Georgia, at Chippewa Square. The fiberglass bench he sat on, since then, has been removed and placed into a museum to avoid being destroyed by bad weather, or possibly stolen. The church where the feather first falls was about 100 yards just down the street from the bench. To this day, the bench is held in the Savannah History Museum, Savannah, Georgia.
16/25. Gump’s Medal of Honor ceremony uses the footage of the actual ceremony for Sammy L. Davis, who was awarded the Medal of Honor on 19 November 1968 by President Lyndon Johnson for his actions in Vietnam a year earlier. Tom Hanks’ head was superimposed on Davis’ body.
17/25. When Lt. Dan Taylor first meets Forrest and Bubba in Vietnam, he says, “You must be my FNGs”. Generally speaking, this stands for “F*ckin’ New Guys”.
18/25. Every still picture of Forrest during this film shows Tom Hanks with his eyes closed.
19/25. Robin Wright was sick with a cold while shooting the nightclub scene. In spite of this, she was still able to perform her own singing during a non-stop twenty-four hour shoot in which she was nearly nude except for her guitar.
20/25. David Alan Grier, Ice Cube and Dave Chappelle turned down the role of Bubba. Cube refused to play someone with a disability and Chappelle thought the movie would bomb. Chappelle has since admitted to deeply regretting not taking the role.
21/25. Kurt Russell has said that he did the voice of Elvis Presley (uncredited) in the film, reprising his role from Elvis (1979).
22/25. The shrimp boat used in the film now resides in the moat surrounding the Planet Hollywood restaurant in Downtown Disney, at the Disney World Resort in Florida. Also, one of the ping-pong paddles used in the film is signed by Tom Hanks and hung up on one of the walls inside the restaurant.
23/25. On the day that Tom Hanks shot the football running scenes he had been suffering from influenza.
24/25. Sally Field is only ten years older than Tom Hanks.
25/25. When this film became wildly successful, talk of a sequel naturally arose. However, at the time, Tom Hanks adamantly refused to work in any sequel (and making the sequel with another actor was not a consideration).