Submitted by Terence Blackett
When it is dark enough, you can see the stars. – Persian proverb
Timothy Geithner (Obama’s economic “spin-merchant”) was in London last week to meet with George Osbourne – the new (“green-around the ears” Chancellor of the Exchequer) and as I looked at these two young whippersnappers, I realized why the current economic climate lacks vision, forethought and real men of true wisdom.
At the same time, I saw this age-old convoluted paradigm, all too reminiscent of the positional asphyxiation for which rich and powerful families and individuals find themselves is due to wanton greed and avarice – manipulating the destiny of men by wrecking markets to induce their agenda upon the world.
Theorists like CRUSOE* et al are firm in their convictions arguing that since the engineered market crash of 1929* caused “The Great Depression” – modern capitalism has seen a combination of crashes and crunches spanning a period of more than 7 decades – with a cumulative history which covers many hundreds of years dating as far as the 1700’s.
An even earlier part of that history reminds us of the Florentine Medici family (cf. Machiavelli) who were the catalysts behind putting 3 Popes – Leo X; Clement VII in the 16th century and later Leo XI who was elected Pope in April 1605 (and died within the month) into the Vatican (a city within a city – a nefarious mausoleum of cryptic artefacts, stolen priceless objects and stolen African “GOLD” reserves held by Jewish conspirators which could put the world economy in the ‘green’).
The power of the Popes over the ages have had a multifarious, yet malevolent influence on politics, art and architecture – this has been in part due their pre-eminence in European banking, in cahoots with the Medici Bank which was the most powerful European institution of its time, resulting in the Medici’s for a time being the wealthiest family in Europe (that is until the emergence of the Jewish Rothschild’s dynasty).
Great wealth brought great power to the Medici clan who were to become Dukes of Florence extending their influence throughout the powerful provinces of Tuscany and all of Italy.
In April 1478, the rivals of the Medici – the Pazzi concocted a conspiracy to remove the Medici as the de facto rulers of Tuscany and put in their place a puppet – the nephew of Francesco della Rovere, who was reigning as Pope Sixtus IV. The politics of intrigue, ruthlessness and destruction was as pervasive in the Italian Renaissance, as it is today in the hallowed halls of bourgeois capitalism, where the only motivation for bringing in a conspiratorial ONE*World – where one man controls everything from a vantage point of great political, economic and religious power.
The Salviti clan, who were the Papal bankers in Florence at the time together with Francisdo de Pazzi, planned to assassinate the ruling Medicis – Lorenzo and Giuliano (so the story goes).
So on Sunday, April 26, 1478, during Catholic High Mass at the Duomo before a crowd of 10,000 faithful followers, Giuliano de’ Medici was stabbed 19 times by a gang that included a (Priest), and bled to death on the cathedral floor. His brother Lorenzo barely escaped with serious, but non life-threatening wounds.
The coup d’état failed, (as is usually the case when men forget that God watches the moves of men), and the enraged Florentines seized and killed the conspirators. Jacopo de’ Pazzi was tossed from a window, finished off by the mob, dragged naked through the streets and thrown into the Arno River.
The Pazzi family were stripped of their possessions in Florence. Every vestige of their name effaced. Salviati was hanged on the walls of the Palazzo della Signoria. Although Lorenzo appealed to the crowd not to exact summary justice, many of the conspirators, as well as many people accused of being conspirators, were killed.
This story reads like a pictorial dramatization of a Hollywood movie scripted by none other than Quentin Tarantino.
Italy, (that city on 7 hills upon which the Beast sits), where the Medici family had transformed the sinful Jewish practice of usury into the banking system we know today and in the process became as powerful as ruling monarchs if not more so.
This has been a history of greed, vice, avarice and murder followed to its logical conclusion to become the backbone of what most worship* today as modern capitalism, where businesses squabble for disingenuous benefits that inherently transfer wealth from poor and impoverished nations and communities to devilish individuals. The real “Wealth of Nations” is systematically being transferred to preferred individuals and organizations through patronage, pillage and prevarication which stems from ill-gotten power, wanton abuse and megalomania.
Social historians argue that by 1546 the Spanish Conquistadores had established vast gold and silver mines in Bolivia (still in operation today) – while enslaving the indigenous people to create so much currency for the Spanish Crown that it eventually became worthless. Today Spain is in the jaws of the worst economic crisis in modern history (payback no wonder).
In 1721 while in Paris, Scottish con-man John Law created a Ponzi scheme tied to the Louisiana territory (an asset bubble) that literally brought France to its knees. Law’s company had bought the whole of France’s 1.6 billion livre government debt with subscription proceeds (under the behest of a duped and economically illiterate monarch) which resulted in chaos that led to economic collapse across Europe.
Almost 300 years later, Europe is experiencing what can only be described as “Karma” – with the said French under a Napoleonesque-type leader who suffers from a form of vertically-challenged syndrome both physical and psychologically. Last week, he too threatened to pull out of the Euro.
By 1818 in London, Jewish bonds trader, Nathan Rothschild and his family nearly went bankrupt by helping to finance the British army’s war effort against Napoleon – then in a stroke of sheer genius gained enormous wealth through the buying and selling of war bonds playing both sides of that iron curtain – an age-old slight of hand, (a win-win) where only the bond-holder appreciates in value – (win or lose). This is the loci of the current stock market today as it bets and gambles both sides of the equation.
Today political economists would like to make us believe that we were out of the woods – but what we have witnessed in recent history with the 2008 banking crisis is the boldfaced duplicity of governments and private wealth capital merge into strange bedfellows.
This merger is creating a new modern-day “asset bubble” where DEBT* has become unmanageable. Europe is especially gripped with a disproportionate level of escalating debt which is no longer serviceable regardless of what our dubious politicians tell us.
In the 1980’s, French president Francois Mitterrand raised the money in the welfare state by 10% giving virtually a hand out to French citizens immobilizing the work ethic – so the debt rose from 20% of GDP to current levels of 80%. By 2020, France will be spending somewhere in the vicinity of 140% of its GDP just to fund public services and a growing population. The economic reality – this is unsustainable!
British PM David Cameron last week lost his LIBDEM* Treasury secretary Mr. Laws (is this ominous or what) to an on-going expenses scandal where he paid his closet homosexual lover monies from the public purse for rental accommodation – as if he needed to do that as he is already a millionaire banker (what shenanigans).
But let’s look at the reality of Britain’s proposed austerity measures. The UK went from a debt/GDP ratio of 43% in 1980 under a Thatcher government to a fiscal time-bomb of 65%. Our fiscal deficit is currently the highest in the EU (that includes Greece as well) somewhere around 13% of GDP. When you add the cost of government borrowing, household debt that staggers to somewhere in the region of 400% in today’s terms as against a 150% back in 1980.
On Britain’s heels is Japan at 200% of GDP. The three largest economies in the world – America, EU & Japan have a combined debt ratio of somewhere in the vicinity of £20 trillion compared to total output of £21.25 trillion. When you factor in £32 trillion of private debt, one can understand why the “inglorious basterds” must engineer and trigger another economic apocalypse very soon – some suspect as soon as 2012 (for it will coalesce and merge nicely with the Mayan prophecies of gloom and decimation).
One harbinger of that scenario will be a gradual spiral in interest rates which foreseeably will happen sooner than expected given rise to higher mortgages, food and services.
There is no denying that the global economy is on life-support. Like much of history, trends rarely change. The reason why I say this is so simple – he who controls the “gold” wins. Let me explain why!
According to Daniel O’Connor in referencing the 1998 best selling book “The House of Rothschild: Money’s Prophets 1798-1848” by Professor Niall Ferguson argues that “the Rothschild family dynasty was very effective at influencing monetary policy throughout Europe’s major financial cities as they were closely linked to the central banks and they also dominated the world’s precious metals market – specifically gold.”
“Given the sheer quantity of gold the family had acquired they were able to manipulate the continent’s money supply. Without the existence of central banks their manipulation tactics would not have been possible.”
“James Rothschild had in fact been sending substantial quantities of gold across the English Channel since the beginning of 1825, if not earlier.”
“In the first week of January alone, he had sent gold worth nearly £500,000, which he expected to ‘impress your Bank’ (meaning the Bank of England). By the middle of the month, he was talking about ‘our old established practice’ of ‘buying some gold whenever we can find any’.”
“The family was obsessed with gold and imported it from all across the globe including South America, Russia, Turkey and Australia. Their perception and understanding for the value of gold is very much in line with that of modern-day Austrian Economists – it is the best store of value.”
“However, as the family always invested in gold, they did not always support the notion of gold to be upheld as a currency in circulation. Often times, they preferred the gold for themselves while allowing paper to circulate in the economy by encouraging their political associates to print notes.”
“Paper notes and govt bonds were much easier to manipulate, especially with greater political intelligence and political influence than any other banker in the market.”
“They also used faulty scare tactics such as ‘the fear of deflation’ and a contracting economy as a means to keep paper in circulation (similar to some modern-day ‘economists’).”
“Taking it for granted that the new bank would maintain an inadequate reserve, James [Rothschild] predicted that if it got into difficulties the government would have to choose between ‘a general bankruptcy’ or the suspension of gold and silver convertibility. These were exaggerated fears designed to intimidate Louis Napoleon.” (p. 61 – volume 2)
“In 1819, the ‘bullionists’ had effectively won. Dismayed, Nathan sought to dissuade Liverpool from going back on to gold, even pursuing ministers into the country to make his case. Nathan never opposed the resumption of cash payments (linked to gold) as a matter of theoretical principle; he and his fellow bankers made a practical argument that the short-run effects of a deflationary policy would be economically destabilizing, and that this might tend to run counter to the government’s goal of fiscal and monetary stabilization.” (p. 120-121)
“The family controlled so much gold that when they moved huge quantities of bullion from one central bank to another they were able to flood the market causing inflation and prices to then rise. Throughout a boom period ending in 1824, the family was able to generate huge profits.”
“Afterward, Nathan and other bankers began to remove huge quantities of gold from England at the end of the boom in 1825.”
“In 1825, a bust period occurred and asset prices across the market dropped significantly.”
“The Bank of England then became responsible for fixing the economic crises in 1825, and The Rothschilds were granted the role of “lender of last resort to the lender of last resort” because they had excess gold.”
“Had it not been for the most extraordinary exertions – above all on the part of old Rothschild – the Bank must have stopped payment.”
“Of course Nathan would not have made such immense deliveries of gold without asking for a generous commission in return. The operation has to be seen as his campaign to establish himself as the dominant force in the London bullion market…”
“The rescue of the Bank was a remarkable achievement which owed everything to the international nature of Rothschilds’ operations. In effect, the brothers were establishing that system of international monetary co-operation which would later be performed routinely by central banks, and on which the gold standard came to depend. Increasingly, their position in the international bullion market was becoming as dominant as their position in the international bond market.” (p. 137)
5 major catalysts precipitated the Great Depression:
- Stock Market Crash
- Bank failures
- Reduction in purchasing power across most sectors
- The US economic policy towards Europe
- DEBT*, foreclosure, loss of food production & farms in the Mississippi Delta valley.
Will anything different happen this time around? The jury is still out. All that’s left is for us to do is protect our assets. Pay down ALL* debt. Buy gold and invest in food production. Beyond that – all we can do is to trust Providence for a way through the approaching storm.
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