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The Day the Dollar Died



Pentagon, Military Actively War Gaming ‘Large Scale Economic Breakdown’ and ‘Civil Unrest’

Betting In The Endgame

Darryl Robert Schoon

There is a difference between betting in the endgame and betting on the endgame. The former is a fool’s avocation whereas the latter is a once in a lifetime opportunity. The endgame of capitalism is a uniquely different environment where investors find themselves faced with increasingly dangerous options.

There is a difference between betting in the endgame and betting on the endgame. The former is a fool’s avocation whereas the latter is a once in a lifetime opportunity.

The endgame of capitalism is a uniquely different environment where investors find themselves faced with increasingly dangerous options. In the endgame, proven strategies are improvident, buying and holding becomes a time bomb and speculators are favored over investors because of excessive liquidity and volatility.

Capitalism, a system of credit and debt that produced 300 years of growth is now dying. The bankers’ debt-based money has created such levels of debt that even 0 % credit can no longer induce growth. In the endgame, the problem is not the lack of credit – it’s the excessive amount of debt.

…sooner or later, too much credit always turns into a giant debit as borrowers crumple under the burden of escalating interest payments… – Melchior Palyi, economist, 1892-1970

Capitalism’s problem has always been debt, the inevitable byproduct of credit-driven expansion. In times of economic growth, merchants of debt, i.e. bankers, sell debt to those seeking returns; but, in the endgame when economies contract, IOUs cannot be repaid as defaulting debt overwhelms the ability to pay what is owed.

Today, central bankers are caught in a trap of their own making. Removing gold from the international monetary system in 1971 allowed governments and bankers to expand their balance sheets to historic heights. The price, however, was the debasement of their currencies, a price which is now being exacted.

Gold is up 29 percent this year and is heading for a 10th annual gain, the longest winning streak since at least 1920 in London, partly on demand for an alternative asset to protect against the debasement of currencies. – Bloomberg.com, November 8, 2010

In 1971, on the advice of Milton Friedman (Ben Bernanke’s mistaken mentor), President Nixon ended the convertibility of the US dollar to gold; and, since then, central bankers have been fighting to keep their debt-based paper money functioning without the backing of gold – a fight they are now losing.

Gold..has risen again today in most currencies and reached new record nominal highs in sterling (877.30/oz) and is targeting record nominal highs in euros . Competitive currency devaluations and currency debasement is seeing all fiat currencies fall in value against gold. – Goldcore.com, November 9, 2010

That an economic system based on leveraged debt actually lasted three centuries is a miracle as well as an abomination. Its passing will nonetheless be mourned by those who still believe that bankers are benign wizards of modern finance overseeing orderly and just markets.

In truth, bankers are self-serving parasites whose dispensation of credit ultimately leaves societies, businesses and nations bankrupt on the gallows of compounding unpayable debt.

Investors Forced to Take On Risk

By keeping interest rates low, central bankers are trying to force investors to take on more risk to keep their economies functioning. By so doing, however, central bankers are distorting underlying free market dynamics as investors should be reducing, not increasing risk, in such times.

The consequences of distorting free-market forces have devastating repercussions in the endgame. This is what happened in 2002 when Greenspan cut interest rates to 1% and in so doing created the catastrophic US real estate bubble whose collapse brought global credit markets to a halt in 2007.

Capitalism’s free markets are only free as long as they serve the bankers’ quid pro quo that markets accept the bankers’ leveraged debt, i.e. capital, as money. Such markets flourished before gold’s complete removal from bankers’ bogus money in 1971, setting the endgame in motion; and, now, 39 years later, the endgame is almost over as monetary disarray and defaulting debt take their toll.

In should be noted that Greenspan’s real estate bubble could not have expanded without the collusion of credit-rating agencies and US regulators. As regulators looked the other way, credit agencies such as Moody’s, S&P and Fitch fraudulently gave subprime mortgages the highest AAA rating allowing institutional investors, e.g. pension funds and insurance companies, to buy trillions of dollars of high yielding toxic debt extending capitalism’s endgame a few more years.

The critical role that credit rating agencies played in the collapse of markets was predicted by economist Melchior Palyi. In The Wall Street Journal article The Man Who Called the Financial Crisis – 70 Years Early (11/6/10), the WSJ credited Palyi (1892-1970) with having predicted the current financial crisis and its cause in 1936.

Palyi’s Next Prediction

Palyi later made another prediction about a trend that could eventually cause the collapse of the western banking system. Palyi noted that after 1950 gold was being drained from central bank monetary reserves at an unprecedented rate before disappearing then into private hoards.

Melchior Palyi first came to my attention in an article subtitled, Gold Vanishing Into Private Hoards (5/31/2007) by Professor Antal E. Fekete, another Hungarian-born economist. In that article, Fekete wrote:

While doing research in the Library of the University of Chicago in the early 1980’s I came across the unfinished manuscript of a book with the title: The Dollar: An Agonizing Reappraisal. It was written in the year 1965. It has never been published (although it has received private circulation).

The author, monetary scientist Melchior Palyi, a native of Hungary, died before he could finish it. Monetary events started to spin out of control in 1965, culminating in the default on the international gold obligations of the United States of America six years later in August,1971. Palyi had correctly prophesied that event which occurred after he died.

Palyi observed that beginning in 1950, gold bullion began moving out of government reserves into private hoards, a trend that would eventually empty government coffers of the gold that backed their paper currencies. If continued, Palyi predicted this would lead to the breakdown of the entire gold-based monetary setup of the West.

Palyi was right. Six years later, gold was removed as the foundation of the global monetary system. For the first time in history all money was fiat. The following is excerpted from Palyi’s unpublished work, The Dollar: An Agonizing Reappraisal (1965):

1950 is the watershed year marking the start of a new era in the relationship between gold and paper money. In the twelve-year period ending in 1964 the Western World’s gold mines and Russian gold sales (about $1 billion in 1963-64) combined, produced $16 billion worth of gold, but official gold reserves have grown only by $7 billion. More than 50 percent, on average, of the new gold bypassed official reserves and vanished in private hoards. [bold, mine]

On the top of that the prime reserve currency, the U.S. dollar (that is backing many other currencies) had lost close to one-half of its gold reserves. By the end of 1965 our reserves have declined from a peak of $24.7 billion in September, 1949, to less than $14 billion — of which $835 million is a sight deposit of the International Monetary Fund.

Not only has the richest country [the US ] failed to attract any part of the new gold supply; it has actually lost more than $10 billion’s worth. If continued, this process would herald the breakdown of the entire gold-based monetary setup of the West, with incalculable consequences. [i.e. the endgame)

Professor Fekete wrote that in 2007 the amount of gold now in private hoards was greater than all the gold produced before 1950:

…gold absorption into private hoards for the 15-year period from 1950 through 1965 was of the same order of magnitude as the U.S. gold reserve at its peak in 1949, the largest gold concentration ever in history.

This private absorption of gold is unprecedented, both as to its magnitude and to its speed. The total amount of gold absorption for the entire 57-year period 1950-2007 [is] an amount greater than all the gold produced in history before 1950. ..Fifty percent of all gold in existence has been produced since 1960. The same fifty percent has been withdrawn during the same period of time from the public domain, and disappeared in private hoards.

There is no way to account for this gold. We do not know the location, the identity of owners, nor their intentions what they wanted to do with it…

The question is: Who has been buying all that gold?

The Rothschilds

In the endgame, systemic stress often reveals information that would otherwise never be discovered. One such discovery is an unexpected clue to the identity of those buying the world’s gold reserves since 1950. The clue emerged as a consequence of the UK ’s increasingly perilous finances.

A clue to the mystery buyers surfaced on November 1st when in a speech in the House of Lords, Lord James of Blackheath revealed that a shadowy group [referred to as Foundation X by Lord James] had contacted him with an offer to help solve the UK’s economic problems, a group that possesses more gold than all the world’s bullion reserves combined.

On the basis of these gold holdings – in excess of 30,000 tons – Foundation X is in all likelihood a front for the Rothschilds, the infamous banking family which has a long history with gold.

The family patriarch, Nathan Rothschild, first began dealing in gold in 1809, in 1840 the Rothschilds were appointed bullion brokers for the Bank of England and from 1919 to 2004 the family firm oversaw the daily fixing of the gold price in London – and, most likely, are now the mysterious buyers who have been purchasing most of the world’s gold since 1950.

Note: This is a link to the speech where Lord James revealed Foundation X’s offer of aid to the UK : http://www.liveleak.com/view?i=869_1288858103&c=1. Prior to his peerage, Lord James had a career as a highly respected banker and corporate director and his reference to “laundering terrorist money” refers to his work for the UK in dissolving bank accounts used by the IRA.


The multi-billion pound offer of “Foundation X” to aid the UK is an indication of just how serious these times are. The collapse of the global banking system threatens the power of all who have benefited from the systemic indebting of others, a group that certainly includes the Rothschilds.

It is clearly in the Rothschilds’ self-interests to now help England , the nation which made their banking empire possible through its legitimization of debt-based capital as money. The fortunes of England and the Rothschilds have been intertwined for centuries and should England collapse, the power and influence of the Rothschilds would decline as well.

The endgame is bringing about the end not only of capitalism, but the vast empires of wealth to which it gave rise. That the elites are now worried about the economic stability of sovereign nations is evidence that the endgame is drawing closer to its inevitable end.

The End

Debt is the critical issue now facing the world’s governments. How it should be approached is the focus of much debate. In a recent exchange of views hosted by the news program, Russia Today, I and others discussed the global debt crisis. To view the discussion, go to http://www.youtube.com/watch?v=IrOvs_R0haY.

The debt crisis is part of capitalism’s endgame. In 1981, Buckminster Fuller predicted that the world’s power structures would collapse. In 1991 communism fell and today capitalism is following in communism’s fatal footsteps.

Fuller was not the only one who predicted the seriousness of the present crisis. Among them were economists Melchior Palyi, Ludwig von Mises, John Exter, economic historian David Hackett Fisher, American historians William Strauss and Neil Howe and others. Given the severity of this crisis, it is a short list.

Another unlikely source, however, recently came to my attention; a psychic channeling in 1992 also predicted today’s debt-driven economic troubles [note the use of the word monetary in the channeling]:

… In your country [ USA] right now you see some signs of economic recovery on some levels. However, it has not reached its full stage of recovery and there will be additional times of turmoil in the monetary sense concerning your country and the world as a whole.

The monetary situation is not good as most of you are aware…The debt of the country is phenomenal. If it were a private individual it would have been forced to declare bankruptcy long before now. There will be some financial challenges throughout the world in the years ahead… Dr. Blair, channeled message, March 20, 1992.

That a psychic message predicted an event completely missed by the vast majority of trained economists says something about (1) economists, (2) the training of economists and (3) psychics.

Dr. Blair, channeled by the late medium, Dr. Robert Ireland in Tucson, spoke on many subjects. Some of Dr. Blair’s economic predictions are included in a talk I gave at the Temple of Universality on October 31st. To view, go to http://www.youtube.com/view_play_list?p=469EF20E6E32E248

The Reasons for the Crisis

In his channeling in 1992, Dr. Blair explained the reasons for the coming crisis, reasons that bear a close similarity to those given by Buckminster Fuller in the introduction to Fuller’s book, the Critical Path.

It will be a spiritual revolution…It will be a time of trials and tribulations but one that brings mankind closer together. Man will come to each other’s aid for the purpose of helping and uplifting his brother. – Dr. Blair, channeled message, March 20, 1992

Humanity is moving ever deeper into crisis – a crisis without precedent.

First, it is a crisis brought about by cosmic evolution irrevocably intent upon completely transforming omnidisintegrated humanity from a complex of around-the-world, remotely-deployed-from-one-another, differently colored, differently credoed, differently cultured, differently communicating, and differently competing entities into a completely integrated, comprehensively interconsiderate, harmonious whole. Critical Path, Buckminster Fuller, St. Martin’s Press, 1981, page xvii:

The crisis has not yet brought about the radical transformation of humanity that Buckminster Fuller and Dr. Blair predicted. This is because the requisite level of severity has not yet been reached. It will be.

For a limited time, a free one month trial subscription to Moving Through The Maelstrom with Darryl Robert Schoon is being offered. For details, see http://bit.ly/cew7iq

Buy gold, buy silver, have faith.

Darryl Robert Schoon



Blog www.posdev.net/pdn/index.php?option=com_myblog&blogger=drs&Itemid=81

Gold vs. The Fed: The Record Is Clear

Charles Kadlek

There were no worldwide financial crises of major magnitude during the Bretton Woods era from 1947 to 1971. Lesson: Gold is a more efficient governor of monetary policy that the Federal Reserve.

When it last met, the Federal Open Market Committee (FOMC) signaled its desire to increase the rate of inflation by providing additional monetary stimulus. This policy is based on a false – and dangerous – premise: that manipulating the dollar’s buying power will lead to higher employment and economic growth. But the experience of the past 40 years points to the opposite conclusion: that guaranteeing a stable value for the dollar by restoring dollar-gold convertibility would be the surest way for the Federal Reserve to achieve its dual mandate of maximum employment and price stability.

From 1947 through 1967, the year before the US began to weasel out of its commitment to dollar-gold convertibility, unemployment averaged only 4.7% and never rose above 7%. Real growth averaged 4% a year. Low unemployment and high growth coincided with low inflation. During the 21 years ending in 1967, consumer-price inflation averaged just 1.9% a year. Interest rates, too, were low and stable – the yield on triple-A corporate bonds averaged less than 4% and never rose above 6%.

What’s happened since 1971, when President Nixon formally broke the link between the dollar and gold? Higher average unemployment, slower growth, greater instability and a decline in the economy’s resilience. For the period 1971 through 2009, unemployment averaged 6.2%, a full 1.5 percentage points above the 1947-67 average, and real growth rates averaged less than 3%. We have since experienced the three worst recessions since the end of World War II, with the unemployment rate averaging 8.5% in 1975, 9.7% in 1982, and above 9.5% for the past 14 months. During these 39 years in which the Fed was free to manipulate the value of the dollar, the consumer-price index rose, on average, 4.4% a year. That means that a dollar today buys only about one-sixth of the consumer goods it purchased in 1971.

Interest rates, too, have been high and highly volatile, with the yield on triple-A corporate bonds averaging more than 8% and, until 2003, never falling below 6%. High and highly volatile interest rates are symptomatic of the monetary uncertainty that has reduced the economy’s ability to recover from external shocks and led directly to one financial crisis after another. During these four decades of discretionary monetary policies, the world suffered no fewer than 10 major financial crises, beginning with the oil crisis of 1973 and culminating in the financial crisis of 2008-09, and now the sovereign debt crisis and potential currency war of 2010. There were no world-wide financial crises of similar magnitude between 1947 and 1971.

At the center of each of these crises were gyrating currency values – either on foreign-exchange markets or in terms of real goods and services. As the dollar’s value gyrates it produces windfall profits and losses, feeding speculation and poor judgment. The housing bubble was fed in part by 40 years of experience with a dollar that lost purchasing power every year. Today, individual investors are piling into gold and other commodities in hopes of finding a safe haven from the FOMC’s intention to decrease the buying power of the dollar and reduce the value of our savings.

And what of the seductive promise that a floating dollar would make American labor more competitive and improve the nation’s trade balance? In 1967, one dollar could buy the equivalent of approximately 2.4 euros (based on the pre-euro German mark) and 362 yen. Over the succeeding 42 years, the dollar has been devalued by 72% against the euro and 75% against the yen. Yet net exports have fallen from a modest surplus in 1967 to a $390 billion deficit equivalent to 2.7% of GDP today.

The members of the FOMC, like their predecessors, are trying to do the best they can, but they are not really sure what it is that needs to be done. They have kept the federal-funds rate near zero for almost two years, but small businesses find it difficult to get loans and savers suffer from the lost income brought by artificially low interest rates. Now they’re about to advocate higher inflation – i.e., less price stability – in hopes of spurring economic growth.

Economists and pundits may disagree on why the gold standard delivered such superior results compared to the recurrent crises, instability and overall inferior economic performance delivered by the current system. But the data are clear: A gold-based system delivers higher employment and more price stability. The time has come to begin the serious work of building a 21st-century gold standard for the benefit of American workers, investors and businesses.

The Illuminati and the House of Rothschild

Johnny Silver Bear

Editors note: This forward is taken from my essay, Boiling Frogs. In that essay, I attempt to explore the history of the Dark Side prior to the seventeenth century. Among the vilest of the Dark Side (in my humble opinion) are the Money Changers. The Money Changers have always been the members of society that create, exchange and manipulate the quantity of money. I’m not talking about the hard working prospectors and miners, through whose toil the quantity of gold and silver was increased, but rather a group of imbalanced predators who employed dishonesty and deceit to ply their trades. During the 15th and 16th centuries, the Money Changers took the form of goldsmiths.

These goldsmiths became the first bankers as they started keeping other peoples gold and silver in their vaults for safekeeping. Because the goldsmiths worked in large quantities of gold and silver, security prescribed the possession of a vault. A business grew up around these vaults, as they were obviously a seemingly safe place for others to store their precious metals as well. The goldsmiths would, for a small fee, (interest), store a clients deposits and provide, in return, a receipt for the amount of the deposit.

These receipts began to be exchanged for goods and services as they provided a more convenient way to transfer value than constant trips to the vault. Unfortunately, the corruptable influences of lust, avarice, greed and domination proved to be too strong to resist and all attempts of honesty and balance were abandoned.

Goldsmiths began to realize that only a small portion of their depositors ever exchanged their receipts of deposit for the actual bullion, at the same time, so the goldsmiths started lending out some their depositors bullion for additional interest. This, dear readers, is where the whole thing went wrong. The loaning of someone elses property for a profit, without their knowlege, is undeniably deceitfull and dishonest. It is the point when tiny bubbles started to appear on the bottom of the pot. It is also when the devil got involved.

The Devil had originally been an Angel, and, the transgressions that led to this Angel’s “fall from grace” were a result of his abuse of his station by conducting dishonest business deals. There are accounts of other Angels that fell from grace in the New Testament, but the greatest of the fallen angels was known as Lucifer, the ‘Bearer of Light’ or a (spirit) being of extraordinary brilliance (Isaiah 14:12), ‘the Illuminator’, or ‘the Morning Star’. This is the “invisible” power giving rise to this end time social system (Rev.13:2). Because the nature of his transgressions were deemed to be the most heinous, he was was cast out of heaven to rule eternally in hell.

The nature of his disobedience is found in the book of Ezekiel 28:14-19

I created you as a cherub with outstretched shielding wings; and you resided on ETERNAL’s holy mountain; you walked among stones of fire. You were blameless in your ways, from the day you were created until wrongdoing was found in you. By your far-flung commerce you were filled with lawlessness and you sinned. So I have struck you down from the mountain of ETERNAL and I have destroyed you, O shielding cherub from among the stones of fire. You grew haughty because of your beauty, you debased your wisdom for the sake of your splendor; I have cast you to the ground, I have made you an object for kings to stare at. By the greatness of your guilt, through the dishonesty of your trading, you desecrated your sanctuaries. So I made fire issue from you and it has devoured you; I have reduced you to ashes on the ground, in the sight of all who behold you. All who knew you among the peoples are appalled at your doom. You have become a horror and have ceased to be, forever.

Lucifer had been mucking up the sanctity of heaven, in the eyes of the Lord, just as the money changers had been mucking up the sanctity of the temple in Jesus’ eyes for the same reason! Lucifer was the spiritual embodiment of the first economic predator. – JSB

And yes, Virginia, there is an Illuminati…

The “Illuminati” was a name used by a German sect that existed in the 18th century. They practiced the occult, and professed to possess the ‘light’ that Lucifer had retained when he became Satan.

In an attempt to document the origins of an secret organization which has evolved into a mastodonic nightmare, successfully creating and controlling a shadow government that supercedes several national governments, and in whose hands now lay the destiny of the world, one must carefully retrace its history. The lengths to which this organization has gone to create the political machinery, and influence public sentiment to the degree necessary to propel its self-perpetuating prophecy, are, quite frankly, mind boggling. Yet the facts provide for the undeniable truth of its existence.

In 1743 a goldsmith named Amschel Moses Bauer opened a coin shop in Frankfurt, Germany. He hung above his door a sign depicting a Roman eagle on a red shield. The shop became known as the Red Shield firm. The German word for ‘red shield’ is Rothschild.

Amschel Bauer had a son, Meyer Amschel Bauer. At a very early age Mayer showed that he possessed immense intellectual ability, and his father spent much of his time teaching him everything he could about the money lending business and in the basic dynamics of finance. A few years after his father’s death in 1755, Mayer went to work in Hannover as a clerk, in a bank, owned by the Oppenheimers. While in the employ of the Oppenheimers, he was introduced to a General von Estorff for whom he ran errands. Meyer’s superior ability was quickly recognized and his advancement within the firm was swift. He was awarded a junior partnership. Von Estorff would later provide the yet-to-be formed House of Rothschild an entré into to the palace of Prince William.

His success allowed him the means to return to Frankfurt and to purchase the business his father had established in 1743. The big Red Shield was still displayed over the door. Recognizing the true significance of the Red Shield (his father had adopted it as his emblem from the Red Flag which was the emblem of the revolutionary minded Jews in Eastern Europe), Mayer Amschel Bauer changed his name to Rothschild (red shield). It was at this point that the House of Rothschild came into being.

Through his experience with the Oppenheimers, Meyer Rothschild learned that loaning money to governments and kings was much more profitable than loaning to private individuals. Not only were the loans bigger, but they were secured by the nation’s taxes.

Meyer Rothschild had five sons, Amschel, Salomon, Nathan, Karl and Jakob. Meyer spent the rest of his life instructing them all in the secret techniques of money creation and manipulation. As they came of age, he sent them to the major capitals of Europe to open branch offices of the family banking business. Amschel, stayed in Frankfurt, Salomon was sent to Vienna. Nathan was sent to London. Karl went to Naples, and Jakob went to Paris.

Although all the sons became astute branch managers, Nathan exhibited a superior affinity for the banking business. When he got to London, he became a merchant banker and began to cement ties between the House of Rothschild and the Bank of England.

The House of Rothschild continued to buy and sell bullion and rare coins. Through their shrewd business transactions they successfully bought out or dismantled most of the competition in Europe. In 1769, Meyer became a court agent for Prince William IX of Hesse-Kassel, who was the grandson of George II of England, a cousin to George III, a nephew of the King of Denmark, and a brother- in-law to the King of Sweden. Before long, the House of Rothschild became the go between for big Frankfurt bankers like the Bethmann Brothers, and Rueppell & Harnier.

In 1785, Meyer moved his entire family to a five story dwelling he shared with the Schiff family. In 1865 The Schiffs not-yet-born grandson Jacob would move to New York and in 1917 become the mastermind behind the funding of the Bolshevik Revolution. This action would successfully instate communism as a major world movement, which was, (and still is), a basic tenet of the Illuminati and their collectivist agenda, (but more Jacob Schiff and the Illuminati agenda later). From this point on the Rothschilds and the Schiffs would play a central role in the rest of European financial history, and subsequently that of the United States and the world.

Meyer Rothschild began to realize that in order to attain the power necessary to influence and control the finances of the various monarchs in Europe, he would have to wrest this influence and power from the church, which would necessitate its destruction. To accomplish this, he enlisted the help of a Catholic priest, Adam Weishaupt, to assemble a secret Satanic order.

Adam Weishaupt was born February 6, 1748 at Ingoldstadt, Bavaria. Weishaupt, born a Jew, was educated by the Jesuits who converted him to Catholicism. He purportedly developed an intense hatred for the Jesuits. Although he became a Catholic priest, his faith had been shaken by the Jesuits and he became an atheist. Weishaupt was an ardent student of French philosopher Voltaire (1694-1778). Voltaire, a revolutionary who held liberal religious views, had written in a letter to King Frederick II, (“the Great”):

Lastly, when the whole body of the Church should be sufficiently weakened and infidelity strong enough, the final blow (is) to be dealt by the sword of open, relentless persecution. A reign of terror (is) to be spread over the whole earth, and…continue while any Christian should be found obstinate enough to adhere to Christianity.

It is believed that, as a result of Voltaire’s writings, Weishaupt formulated his ideas concerning the destruction of the Church. In 1775, when summoned by the House of Rothschild, he immediately defected and, at the behest of Meyer, began to organize the Illuminati. The 1st chapter of the order started in his home town of Ingolstadt.

As the name implies, those individuals who are members of the Illuminati possess the ‘Light of Lucifer‘. As far as they are concerned, only members of the human race who possess the ‘Light of Lucifer‘ are truly enlightened and capable of governing. Denouncing God, Weishaupt and his followers considered themselves to be the cream of the intelligentsia – the only people with the mental capacity, the knowledge, the insight and understanding necessary to govern the world and bring it peace. Their avowed purpose and goal was the establishment of a “Novus Ordo Seclorum” – a New World Order, or One World Government.

Through the network of the Illuminati membership, Meyer Rothschild’s efforts were redoubled and his banking empire became firmly entrenched throughout Europe. His sons, who were made Barons of the Austrian Empire, continued to build on what their father had started and expand his financial influence.

During the American Revolution, the House of Rothschild brokered a deal between the Throne of England and Prince William of Germany. William was to provide 16,800 Hessian soldiers to help England stop the Revolution in America. Rothschild was also made responsible for the transfer of funds that were to pay the German soldiers. The transfer was never made. The soldiers were never paid, which may account for their poor showing. The Americans prevailed. At this point Meyer Rothschild set his sights on America.

Meanwhile Benjamin Franklin, having become very familiar with the Bank of England and fractional reserve banking, (see goldsmiths above), understood the dangers of a privately owned Central Bank controlling the issue of the Nation’s currency and resisted the charter of a central bank until his death in 1791. That was the same year that Alexander Hamilton pushed through legislation that would provide for the charter of The First Bank of the United States. Ironically, the bank was chartered by the Bank of England to finance the war debt of the Revolutionary War. Nathan Rothschild invested heavily that first bank. He immediately set about to control all financial activity, between banks, in America.

There were a couple of problems, though. The U.S. Constitution put control of the nation’s currency in the hands of Congress, and made no provisions for Congress to delegate that authority. It even established the basic currency unit, the dollar. The dollar was Constitutionally mandated to be a silver coin based on the Spanish pillar dollar and to contain 375 grains of silver.

This single provision was designed to keep the American money supply out of the hands of the banking industry. The Bank of England made several attempts to usurp control of the U.S. money supply but failed. Still, through their Illuminati agents, they continued to enlist supporters through bribery and kickbacks.

“Any proponent of a fractional reserve banking system is an economic predator.” – JSB

During the next twenty years the country would fall prey to contrived financial havoc as a result of the bankers policies of creating cycles of inflation and tight money. During times of inflation the economy would boom, there would be high employment, and people would borrow money to buy houses and farms. At that point the bankers would raise interest rates and incite a depression which would, obviously, cause unemployment. People who could not pay their mortgages would have their homes and farms repossessed by the bank for a fraction of their true value. This is the essence of the Illuminati ploy, and it would recur, time and time again. In fact, it’s still happening today.

By 1810,The House of Rothschild not only had a substantial stake in the Bank of the United States, they were quietly gaining control of the Bank of England. Although foreign owners were not, by law, allowed a say in the day to day operations of the Bank of the United States, there is little doubt that the American share holders and directors were, if not affiliated, complicit in the aims and goals of the Illuminati and their central bankers.

In 1811 the charter for the First Bank of America was not renewed. As a result, the House of Rothschild lost millions. This enraged Nathan Rothschild so much that he, almost single handedly fomented the War of 1812. Using his formidable power and influence, he coerced the British Parliament to attempt to retake the Colonies. The first military attempt failed. The second strategy was to divide and conquer. Any serious historian will find that the Civil War was largely stirred up by Rothschild’s illuminati agents in the United States.

Meyer Amschel Rothschild died on September 19, 1812. His will spelled out specific guidelines that were to be maintained by his descendants:

1) All important posts were to be held by only family members, and only male members were to be involved on the business end. The oldest son of the oldest son was to be the head of the family, unless otherwise agreed upon by the rest of the family, as was the case in 1812, when Nathan was appointed as the patriarch.

2) The family was to intermarry with their own first and second cousins, so their fortune could be kept in the family, and to maintain the appearance of a united financial empire. For example, his son James (Jacob) Mayer married the daughter of another son, Salomon Mayer. This rule became less important in later generations as they refocused family goals and married into other fortunes.

3) Rothschild ordered that there was never to be “any public inventory made by the courts, or otherwise, of my estate…Also I forbid any legal action and any publication of the value of the inheritance.”

Nathan Mayer Rothschild, who, by 1820, had established a firm grip on the Bank of England stated:

I care not what puppet is placed upon the throne of England to rule the Empire on which the sun never sets. The man who controls Britain’s money supply controls the British Empire, and I control the British money supply.

The Second Bank of the United States, was also chartered by the Bank of England to carry the American war debt. When its charter expired in 1836, President Andrew Jackson refused to renew it, saying a central bank concentrated too much power in the hands of un elected bankers.

In 1838 Nathan made the following statement:

Permit me to issue and control the money of a nation, and I care not who makes its laws.

During the first quarter of the nineteenth century the Rothschilds expanded their financial empire throughout Europe. They crisscrossed the continent with railroads, which allowed the transport of coal and steel from their newly purchases coal mines and iron works. Through a loan to the government of England, they held the first lien on the Suez Canal. They financed the Romanov dynasty in tsarist Russia, provided the funding that allowed Cecil Rhodes the opportunity to plunder and sack South Africa as well as the funding that allowed the government of France to plunder and sack North Africa.

As I have stated many times before, “the Dark Side” has been on both sides of every war that has been fought in modern times. American and British Intelligence have documented evidence that the House of Rothschild has financed both sides of every war, since the American Revolution. Financier Haym Salomon, an Illuminati agent, supported the patriots during the American Revolution, then later made loans to James Madison, Thomas Jefferson, and James Monroe. As explained earlier, during the Napoleonic Wars, one branch of the family funded Napoleon, while another financed Great Britain, Germany, and other nations.

One of the most prominent Illuminati Orders in the U.S. was the secret “Order of Skull & Bones”. Illuminati agents, William Huntington Russell and Alphonso Taft, founded Chapter 322, at Yale University in 1833. Then, in 1856 the Order was incorporated as the Russell Trust. William Russell became a member of the Connecticut State Legislature in 1846 and a General in Connecticut National Guard in 1862. Alphonso Taft became Secretary of War in the Grant Administration in 1876, U.S. Attorney General in 1876 and U.S. Ambassador to Russia in 1884. Alphonso Taft’s son later became Chief Justice and United States President.

In the years preceding the Civil War, a number of “Skull and Bones” Patriarchs were to become leaders in the Secessionist movements of various Southern States. It has been suggested that these pressures exacerbated an already tenuous situation, and set the stage for the fomentation of the Civil War. The Rothschild Banks provided financing for both the North and the South during the war. After the civil war, the more clever method was used to take over the United States. The Rothschilds financed August Belmont, Khun Loeb and the Morgan Banks. They then financed the Harrimans (Railroads), Carnegie (Steel) and other industrial Titans. Agents like Paul Warburg, Jacob Schiff, Bernard Baruch were then sent to the United States to effect the next phase of the takeover.

By the end of the 19th. Century, the Rothschilds had controlling influence in England, U.S., France, Germany, Austria and Italy. Only Russia was left outside the financial sphere of world domination. England, through the Bank of England, ruled most of the world. Jacob Schiff, president of Khun Loeb Bank in New York was appointed by B’nai B’rith (A secret Jewish Masonic Order meaning “Bothers of the Convenent”) to be the Revolutionary Leader of the Revolution in Russia. A cartel, made up of the Carnegies, Morgans , Rockefellers, and Chases would contribute to the manifestation of communism. On January 13, 1917, Leon Trotsky arrived in the United States and received a U.S. Passport. He was frequently seen entering the palatial residence of Jacob Schiff.

Jacob Schiff, and his supporters, financed the training of Trotsky’s Rebel Band, comprised mainly of Jews from New York’s East Side, on Rockefeller’s Standard oil Company property in New Jersey. When sufficiently trained in the techniques of guerrilla warfare and terror, Trotsky’s rebel band departed with twenty million dollars worth of gold, also provided by Jacob Schiff, on the ship S.S. Kristianiafjord bound for Russia to wage the Bolshevik revolution.

After the Bolshevik Revolution and the wholesale murder of the entire Russian royal family, Standard Oil of New Jersey brought 50% of the huge Caucasus oil field even though the property had theoretically been nationalized. In 1927, Standard Oil of New York built a refinery in Russia. Then Standard Oil concluded a deal to market Soviet Oil in Europe and floated a loan of $75 million to the Bolsheviks. Jacob Schiff and Paul Warburg at the Kuhn Loeb Bank started a campaign for a central bank in the United States. They then helped the Rothschild’s to manipulate the financial Panic of 1907.

Then, the panic of 1907 was used as an argument for having a central bank to prevent such occurrences. Paul Warburg told the Banking and Currency Committee: ‘Let us have a national clearing house’.”

The Federal Reserve Act was the brainchild of Baron Alfred Rothschild of London. The final version of the Act was decided on at a secret meeting at Jekyll Island Georgia, owned by J.P. Morgan. Present at the meeting were; A. Piatt Andrew, Assistant secretary of the Treasury, Senator Nelson Aldrich, Frank Vanderlip, President of Kuhn Loeb and Co., Henry Davidson, Senior Partner of J.P. Morgan Bank, Charles Norton, President of Morgan’s First National of New York, Paul Warburg, Partner in Khun Loeb and Co. and Benjamin Strong, President of Morgan’s Bankers Trust Co.

The Federal Reserve Act of 1913, brought about the decimation of the U.S. Constitution and was the determining act of the international financiers in consolidating financial power in the United States. Pierre Jay, Initiated into the “Order of Skull and Bones” in 1892, became the first Chairman of the New York Federal Reserve Bank. A dozen members of the Federal Reserve can be linked to the same “Order.”

The Rothschilds operate out of an area in the heart of London, England, the financial district, which is known as ‘The City’, or the ‘Square Mile.’ All major British banks have their main offices here, along with branch offices for 385 foreign banks, including 70 from the United States. It is here that you will find the Bank of England, the Stock Exchange, Lloyd’s of London, the Baltic Exchange (shipping contracts), Fleet Street (home of publishing and newspaper interests), the London Commodity Exchange (to trade coffee, rubber, sugar and wool), and the London Metal Exchange. It is virtually the financial hub of the world.

Positioned on the north bank of the Thames River, covering an area of 677 acres or one square mile (known as the “wealthiest square mile on earth”), it has enjoyed special rights and privileges that enabled them to achieve a certain level of independence since 1191. In 1215, its citizens received a Charter from King John, granting them the right to annually elect a mayor (known as the Lord Mayor), a tradition that continues today.

Des Griffin, in his book Descent into Slavery, described ‘The City’ as a sovereign state (much like the Vatican), and that since the establishment of the privately owned Bank of England in 1694, this financial center has actually become the last word in England’s national affairs. He contends that the country is run by powers in ‘the City’ and that the throne, the prime minister, and parliament are simply fronts for the real power. E. C. Knuth, in his book Empire of the City, suggests that when the queen enters ‘The City,’ she is subservient to the Lord Mayor (under him, is a committee of 12-14 men, known as ‘The Crown’), because this privately-owned corporation is not subject to the Queen, or the Parliament. The Rothschilds have traditionally chosen the Lord mayor since 1820.

The last Presidential election in the United States provided its citizenry with a choice between two known members of a the same Satanic cult. And even then, the outcome of this election has come under extreme scrutiny. For further exploration into the 2004 Presidential election please follow this link.

“Those who vote decide nothing. Those who count the vote decide everything.”
– Joseph Stalin


Proofs of a Conspiracy Against all the Religions and Governments of Europe by John Robinson (http://www.bilderberg.org/lucis.htm)

The Enlightenment, Freemasonry, and The Illuminati by Conrad Geiger (http://www.atheists.org/Atheism/roots/enlightenment)

A Bavarian Illuminati Primer by Trevor W. McKeown (http://freemasonry.bcy.ca/Writings/Illuminati.html)

The Illuminati and the Council on Foreign Relations by Myron C. Fagan (http://100777.com/node/view/13)

Merchants of Debt by Hans Schicht

The Eagle and the Serpent by Dr. Wesley A. Swift


ostritchIts not what you don’t know that will screw you up, it’s what you know that is wrong. The spin you hear from the mainstream media is intended to mislead you. Open your eyes and face the future. If you leave your head in the sand and ignore it, you are only leaving your butt exposed for the world to kick. This all may sound like gloom and doom, but when you get a handle on what is going to happen, you will have a future filled with opportunity. Fortune favors the Informed.

Silver Shortages Accelerate As Wholesale Supplies Plunge: Krieger/Keiser – 1; JP Morgan – 0

Tyler Durden

Is the Kriger/Keiser “Short Squeeze JPM to Oblivion” plan working? Judging by the wholesale availability of silver (or lack thereof) the answer is a resound yes. In Coin Updates News we read that “as of today, there are no longer any regular wholesale supplies of the 1 ounce through 100 ounce silver rounds and bars available for immediate delivery.  It may be possible to locate incidental quantities of some product, but most wholesalers are now promising two to four weeks delivery to allow time for the silver to be fabricated.” Over the weekend we noted that even at the smaller, retail level, Silver American Eagles sold by the US Mint, have surged to a 2010 high in just the first three weeks of November. Is America now fully intent on ending Jamie Dimon’s domination over the precious metal space?

More on the wholesale silver shortage:

As a result of the shortages, premiums have started to rise.  So far, the increases have been modest, on the order of 0.5-2%.  However, if the shortage grows, expect to see further and larger premium increases in the coming weeks.  We could see a repeat of the late 2008 gold and silver buying frenzy, where product availability got as slow as 1-4 months after payment.

At the COMEX close yesterday, registered (dealer) silver inventories fell below 50 million ounces.  Even if you include the eligible (investor) silver inventories in the COMEX bonded warehouses, which are not available to fulfill COMEX deliveries unless the investor specifically chooses to do so, there were barely 107 million ounces to fulfill around 725 million ounces of contractual obligations.  COMEX silver inventories are now down more than 10% from mid-June even while the amount of silver owed has soared!

On September 16, the COMEX further raised the silver contract margin requirement to $7,250—even though the price of silver had been dropping since November 9!  What is suspicious is that a lot of “insiders” were liquidating their silver positions starting the afternoon of November 15.  Is it possible that they may have received advance notice of the coming change in the minimum margin account requirement and sold in anticipation of lower prices the next day?

The next round of gold and silver options expiration occurs on Tuesday, November 23.  The attempt to suppress gold and silver prices upon the release of the US jobs and unemployment report on November 5 was almost a complete failure.  Unless something is done to knock down gold and silver prices before November 23, a lot of call options will be exercised, which would further increase the demand for physical precious metals.

I suspect, as do many others, that the two rounds of increasing gold and silver margin requirements were timed for no other reason other than to try to help hold down prices through November 23.

Most of this should not be news to Zero Hedge regulars who now realize that the last battle of endless fiat liability dilution is being fought not in the stock market, but in the precious metals arena, where the onslaught of physical purchases versus shorting in paper claims has never gotten as far as it has in the past month. Should JPM be forced to continue covering, not even instituting an infinite margin requirement on silver purchases by the Comex will do much if anything to prevent the “dreaded” end of a fiat system. Speaking of, if anyone has the recent performance of Blythe Masters, we would be overjoyed if it were shared with the Zero Hedge community.