The Fed and the European Central bank have been printing credit as hard as they can – lending extra money as fast as borrowers will take it.
The idea is to replace the liquidity that the markets are destroying…and prevent the free market from working. That is, the feds try to artificially increase the supply of cash and credit…so as to avoid correcting mistakes.
Fact, it’s almost impossible for an economy to correct mistakes when the price of money is going down. Instead, mistakes are typically made worse. Already, the feds have practically sunk the entire economy with too much debt; now they’re trying to put more debt into the system.
The worst is yet to come for the global banking system, which faces potential losses of more than half-trillion dollars from investments in toxic sub-prime US mortgage debt. The problems in the financial sector have spread on a global scale never seen before 1929. A painful adjustment faces the global banking sector over the next few months as losses are revealed and new capital is raised to repair bank balance sheets.
To defuse the crisis, the Fed, the European Central Bank, and the Bank of England are pumping enormous sums of money into the banking system, at below market interest rates, to prevent a “credit crunch” from triggering a global stock market meltdown. Central banks are working together to forestall any sharp tightening in credit conditions that might lead to a downturn around the world.
There is a Battle in the financial markets : Inflation vs. Deflation; Markets vs. Market Manipulators.
The equity markets clearly want to go down, they want to correct the mistakes of the past 25 years. Credit card defaults are alarmingly high, and U.S. job data give rise to the fear of recession.
As the crisis develop politicians are going to prescribe more regulations, more government programs, more central planning and meddling. And the public– who never seem to have a clue – are going to go for it. They’re going to believe that capitalism has failed, that capitalists are greedy and that we’d be better off having apparatchiks and hacks running the economy.
Tuesday, December 25, 2007
Sunday, December 23, 2007
Buy Gold Young Man
Federal Reserve Chairman Ben Bernanke has gone on record stating that, if the need arose, the Fed would print dollars by the helicopter load to smooth over a collapse in the 25-year borrow-and-spend bubble, a collapse that is now underway.
Putting Bernanke’s words into action, since early August of 2007, the Fed has stepped up to the plate with tens of billions of dollars. On November 15 alone, the Fed injected almost $50 billion into the banking system, the largest single-day cash infusion since 9/11.
Then, on December 12, the Fed announced that it would open the spigots by providing lending $28 billion created out of nowhere to the nation’s banks in exchange for a “wide variety of collateral.'
In other words, the Fed will accept as collateral even the very same toxic waste paper now bedeviling the financial system.
And that’s just one of many ways that the government is scrambling to keep the house of cards from falling.
Faced with the very real threat of a deep recession caused by a freeze-up in credit, falling home values and soaring loan defaults, the Fed is left with a rock-and-a-hard-place decision. Hold tight and let the economy fall… hard. Or, open the money spigots wide in an attempt to maintain liquidity in the markets, sacrificing the dollar in the process.
Given two untenable choices, it is my view that the government will continue on the path of a loose monetary policy, the implications of which disastrous for the well being of all people.
Sticking with the helicopter metaphor for a moment longer, creating billions of new dollars out of thin air to smooth over a litany of problems caused by decades of irresponsible debt creation is analogous to a helicopter trying to put out a raging forest fire by dropping tank loads of gasoline.
In other words, the “solution” is more of the same. It is only making the situation worse.
The result is simply this: as more and more dollars are created and injected into the economy, the purchasing power of all the dollars in circulation comes under pressure. It’s called inflation.
In times of inflation, people turn to gold, the only real currency. Viewed in that context, it is perfectly understandable why gold has been moving higher. Moreso, in 1987 prices gold should trade at $1500 per ounce.
The younger generation of money managers know little about gold. They know about structured investments such as those that are now failing left and right, but they don’t know about gold.
While gold doesn’t go up in a straight line – no investment does – it has been considered real money since about 4,000 B.C. Compare that track record against that of government-issued paper currencies. Actually, there is no comparison.
Given the historical record, it’s hard to argue with the adage that all paper money continually falls in value, just at varying rates of speed.
For the last 6 years, gold has been a better investment than paper currencies. I expect this trend to continue and to accelerate.
But why is it that gold is still considered a store of value after all these millennia? Why is it that record numbers of investors – private and institutional – are beginning to turn to more modern forms of gold, including gold ETFs and, of course, the shares of established gold mining companies?
For the answer to that question, I defer to none other than Aristotle who, in the fourth century BC, explained why gold is money…
To serve well as money, an object must be:
durable, which is why we don’t use strawberries as money;
divisible, which is why artwork isn’t practical;
convenient, which is why lead isn’t very good;
consistent, which rules out real estate;
and useful in itself, which is why paper is such a weak choice.
Of all the 92 naturally occurring elements, none fits the requirements better than gold. No one ordained that it should be money; it grew into that role through the practical decisions of millions of people over thousands of years. Not to pick a fight with Aristotle, there’s another essential characteristic I’ll add to the list. For an object to serve well as money, it must be difficult to produce – otherwise, a growing supply of the object will undermine its value. Gold is again the standout. Adding to gold reserves requires a massive expenditure of labor and capital to find it and dig the stuff out of the ground.
So difficult is it to produce, all the gold ever mined would fit into a cube roughly 25 meters on a side -- and that’s something no politician or banker can ever change. How different from paper money, and even more different from the deposits the Federal Reserve regularly creates just by running electrons (there are plenty of them, and they don’t cost much) through a computer.
Key for gold is how little supply is added in a year -- only about 80 million ounces ($62 billion worth at today’s prices). That amounts to a gross “inflation” rate for gold of 1.6% per year, compared to the existing supply of approximately 5 billion ounces. And gold’s net inflation rate is actually a little less than that, since some amount of metal disappears every year in uses that are not fully recoverable. Competing forms of money – the U.S. dollar, for example – typically increase at an annual rate of 15% . In the final analysis, if you have not yet bought gold , it is high time now to protect your savings with gold.
Putting Bernanke’s words into action, since early August of 2007, the Fed has stepped up to the plate with tens of billions of dollars. On November 15 alone, the Fed injected almost $50 billion into the banking system, the largest single-day cash infusion since 9/11.
Then, on December 12, the Fed announced that it would open the spigots by providing lending $28 billion created out of nowhere to the nation’s banks in exchange for a “wide variety of collateral.'
In other words, the Fed will accept as collateral even the very same toxic waste paper now bedeviling the financial system.
And that’s just one of many ways that the government is scrambling to keep the house of cards from falling.
Faced with the very real threat of a deep recession caused by a freeze-up in credit, falling home values and soaring loan defaults, the Fed is left with a rock-and-a-hard-place decision. Hold tight and let the economy fall… hard. Or, open the money spigots wide in an attempt to maintain liquidity in the markets, sacrificing the dollar in the process.
Given two untenable choices, it is my view that the government will continue on the path of a loose monetary policy, the implications of which disastrous for the well being of all people.
Sticking with the helicopter metaphor for a moment longer, creating billions of new dollars out of thin air to smooth over a litany of problems caused by decades of irresponsible debt creation is analogous to a helicopter trying to put out a raging forest fire by dropping tank loads of gasoline.
In other words, the “solution” is more of the same. It is only making the situation worse.
The result is simply this: as more and more dollars are created and injected into the economy, the purchasing power of all the dollars in circulation comes under pressure. It’s called inflation.
In times of inflation, people turn to gold, the only real currency. Viewed in that context, it is perfectly understandable why gold has been moving higher. Moreso, in 1987 prices gold should trade at $1500 per ounce.
The younger generation of money managers know little about gold. They know about structured investments such as those that are now failing left and right, but they don’t know about gold.
While gold doesn’t go up in a straight line – no investment does – it has been considered real money since about 4,000 B.C. Compare that track record against that of government-issued paper currencies. Actually, there is no comparison.
Given the historical record, it’s hard to argue with the adage that all paper money continually falls in value, just at varying rates of speed.
For the last 6 years, gold has been a better investment than paper currencies. I expect this trend to continue and to accelerate.
But why is it that gold is still considered a store of value after all these millennia? Why is it that record numbers of investors – private and institutional – are beginning to turn to more modern forms of gold, including gold ETFs and, of course, the shares of established gold mining companies?
For the answer to that question, I defer to none other than Aristotle who, in the fourth century BC, explained why gold is money…
To serve well as money, an object must be:
durable, which is why we don’t use strawberries as money;
divisible, which is why artwork isn’t practical;
convenient, which is why lead isn’t very good;
consistent, which rules out real estate;
and useful in itself, which is why paper is such a weak choice.
Of all the 92 naturally occurring elements, none fits the requirements better than gold. No one ordained that it should be money; it grew into that role through the practical decisions of millions of people over thousands of years. Not to pick a fight with Aristotle, there’s another essential characteristic I’ll add to the list. For an object to serve well as money, it must be difficult to produce – otherwise, a growing supply of the object will undermine its value. Gold is again the standout. Adding to gold reserves requires a massive expenditure of labor and capital to find it and dig the stuff out of the ground.
So difficult is it to produce, all the gold ever mined would fit into a cube roughly 25 meters on a side -- and that’s something no politician or banker can ever change. How different from paper money, and even more different from the deposits the Federal Reserve regularly creates just by running electrons (there are plenty of them, and they don’t cost much) through a computer.
Key for gold is how little supply is added in a year -- only about 80 million ounces ($62 billion worth at today’s prices). That amounts to a gross “inflation” rate for gold of 1.6% per year, compared to the existing supply of approximately 5 billion ounces. And gold’s net inflation rate is actually a little less than that, since some amount of metal disappears every year in uses that are not fully recoverable. Competing forms of money – the U.S. dollar, for example – typically increase at an annual rate of 15% . In the final analysis, if you have not yet bought gold , it is high time now to protect your savings with gold.
Saturday, December 22, 2007
أنت بدون الإسلام صفر
من مبادئنا الأصيلة، ومن تعاليمنا الجليلة، أن نفتخر بهذا الدين، وأن نتشرّف بأن جعلنا الله مسلمين، فمَن لم يتشرّف بالدين ومن لم يفتخر بكونه من المسلمين، ففي قلبه شك وقلّة يقين، يقول الله في محكم التنـزيل، مُخاطباً رسوله صلى الله عليه وسلم: (وإنه لذكرٌ لك ولقومك وسوف تُسئلون)، أيْ: شرف لك، وشرف لقومك، وشرف لأتباعك إلى يوم القيامة، فالواجب أن تتشرّف بالقرآن، لكونك من أُمّة القرآن، ومن أُمة الإسلام.
بُشرى لنا معشر الإسلام إن لنا مـن العناية ركناً غير مُنْهَدِمِ
لـمّا دعا الله داعِينا لطـاعته بأكرم الرُّسْلِ كنّا أكرمَ الأُمَمِ
يقول جلّ ذِكره: (ولا تهنوا ولا تحزنوا وأنتم الأعلون إن كنتم مؤمنين)، الأعلون سنداً، والأعلون مبادئاً، والأعلون منهجاً، فمبدؤنا المبدأ الأصيل، وقرآننا القرآن الجليل، وسندنا الربُّ الفضيل، فكيف يهِن مَن كان الله سنده، وكيف يِهن مَن كان الله ربّه ومولاه، وكيف يهِن مَن كان رسوله وقُدوته محمداً صلى الله عليه وسلم، وكيف يِهن مَن كان دينه الإسلام؟!.
ولذلك كان لزاماً علينا أن نفخر، وأن نشعر بالشرف والجلالة والنّبل، يوم أن جعلنا الله مسلمين.
لقد ردّ الله –عز وجلّ- على الذين ظنّوا أن مبادئ الشرف ومبادئ الرّفعة، في تحصيل الأموال وامتلاك الدنيا فقال سبحانه: (وقالوا لولا نُزّل هذا القرآن على رجلٍ من القريتين عظيم، أهم يقسمون رحمت ربك نحن قسمنا بينهم معيشتهم في الحياة الدنيا ورفعنا بعضهم فوق بعضٍ درجات ليتخذ بعضهم بعضاً سخرياً ورحمت ربك خيرٌ مما يجمعون).
فالشّرف كل الشّرف ليس في الدور، ولا القصور، ولا في الأموال، ولا في الهيئات ولا في الذّوات، الشّرف أن تكون عبداً لربّ الأرض والسموات، الشرف أن تكون من أولياء الله، الذين يعملون الصالحات، ويجتنبون المُحَرَّمات، ويحبون الصالحين.
ترى المتّقي، فيُحبّه قلبك إن كنت مسلماً؛ لِما يظهر عليه من علامات النصح والقبول والرِّضا، وترى الكافر فيبغضه قلبك، ولو كان وسيماً جميلاً، لأن عليه آيات السّخط، وتعلوه سِمات الإعراض عن الله: (وإذا رأيتهم تُعجبك أجسامهم وإن يقولوا تسمع لقولهم كأنهم خشبٌ مسندة)، فالأجسام طويلة، والبشرة جميلة، ولكن القلوب قلوب ضلالة، وقلوب جهالة، وقلوب عمالة، ولذلك كان الصحابة رضوان الله عليهم، لا يملكون في الدنيا قليلاً ولا كثيراً، ولا يجد أحدهم إلا كسرَة الخبز، وينام في الطرقات، ولكن الله نظر إلى قلوبهم فهَداهم إلى الإسلام.
أخي : افخر بأنك مسلم، ولا يساورك شك في عظمة هذا الدين الذي تعتنقه، وفي أثره الحميد عليك، عضَّ عليه بالنواجذ، وتشبث به، وانضوِ تحت رايته، لتتقدم وترتقي، وسيكون المجد رفيقك، والرفعة مكانك، والنصر حليفك، إن أبقيت حبلك موصولاً بربك، وافتخرت بأنك مسلم، فأنت بدون الإسلام صفر.
بُشرى لنا معشر الإسلام إن لنا مـن العناية ركناً غير مُنْهَدِمِ
لـمّا دعا الله داعِينا لطـاعته بأكرم الرُّسْلِ كنّا أكرمَ الأُمَمِ
يقول جلّ ذِكره: (ولا تهنوا ولا تحزنوا وأنتم الأعلون إن كنتم مؤمنين)، الأعلون سنداً، والأعلون مبادئاً، والأعلون منهجاً، فمبدؤنا المبدأ الأصيل، وقرآننا القرآن الجليل، وسندنا الربُّ الفضيل، فكيف يهِن مَن كان الله سنده، وكيف يِهن مَن كان الله ربّه ومولاه، وكيف يهِن مَن كان رسوله وقُدوته محمداً صلى الله عليه وسلم، وكيف يِهن مَن كان دينه الإسلام؟!.
ولذلك كان لزاماً علينا أن نفخر، وأن نشعر بالشرف والجلالة والنّبل، يوم أن جعلنا الله مسلمين.
لقد ردّ الله –عز وجلّ- على الذين ظنّوا أن مبادئ الشرف ومبادئ الرّفعة، في تحصيل الأموال وامتلاك الدنيا فقال سبحانه: (وقالوا لولا نُزّل هذا القرآن على رجلٍ من القريتين عظيم، أهم يقسمون رحمت ربك نحن قسمنا بينهم معيشتهم في الحياة الدنيا ورفعنا بعضهم فوق بعضٍ درجات ليتخذ بعضهم بعضاً سخرياً ورحمت ربك خيرٌ مما يجمعون).
فالشّرف كل الشّرف ليس في الدور، ولا القصور، ولا في الأموال، ولا في الهيئات ولا في الذّوات، الشّرف أن تكون عبداً لربّ الأرض والسموات، الشرف أن تكون من أولياء الله، الذين يعملون الصالحات، ويجتنبون المُحَرَّمات، ويحبون الصالحين.
ترى المتّقي، فيُحبّه قلبك إن كنت مسلماً؛ لِما يظهر عليه من علامات النصح والقبول والرِّضا، وترى الكافر فيبغضه قلبك، ولو كان وسيماً جميلاً، لأن عليه آيات السّخط، وتعلوه سِمات الإعراض عن الله: (وإذا رأيتهم تُعجبك أجسامهم وإن يقولوا تسمع لقولهم كأنهم خشبٌ مسندة)، فالأجسام طويلة، والبشرة جميلة، ولكن القلوب قلوب ضلالة، وقلوب جهالة، وقلوب عمالة، ولذلك كان الصحابة رضوان الله عليهم، لا يملكون في الدنيا قليلاً ولا كثيراً، ولا يجد أحدهم إلا كسرَة الخبز، وينام في الطرقات، ولكن الله نظر إلى قلوبهم فهَداهم إلى الإسلام.
أخي : افخر بأنك مسلم، ولا يساورك شك في عظمة هذا الدين الذي تعتنقه، وفي أثره الحميد عليك، عضَّ عليه بالنواجذ، وتشبث به، وانضوِ تحت رايته، لتتقدم وترتقي، وسيكون المجد رفيقك، والرفعة مكانك، والنصر حليفك، إن أبقيت حبلك موصولاً بربك، وافتخرت بأنك مسلم، فأنت بدون الإسلام صفر.
Monday, December 10, 2007
Subprime Mortgage : Another crime of the banks
What is hurting the banking industry now is subprime lending – that is, passing out money to subprime mortgage borrowers, subprime corporate borrowers and subprime speculators.
But don’t worry. We live in an age of Democracy & Capitalism...and the protectors (banks) are supposed to make sure the consumers don’t get hurt.
So it was that Henry Paulson came up with an idea...the ‘teaser freezer’ plan. It is being sold to the public as a way to protect homeowners . But it has another purpose,to help save the banks from their own bad judgment.
The ticking time bomb in the U.S. banking system is not resetting subprime mortgage rates,the real problem is the contractual ability of investors in mortgage bonds to require banks to buy back the loans at face value if there was fraud in the origination process.
And, to be sure, fraud is everywhere. It’s in the loan application documents, and it’s in the appraisals. There are e-mails and memos floating around showing that many people in banks, investment banks and appraisal companies – all the way up to senior management – knew about it.
The catastrophic consequences of bond investors forcing originators to buy back loans at face value are beyond the current media discussion. The loans at issue dwarf the capital available at the largest U.S. banks combined, and investor lawsuits would raise stunning liability sufficient to cause even the largest U.S. banks to fail, resulting in massive taxpayer-funded bailouts of Fannie and Freddie, and even FDIC.
The problem isn’t just subprime loans. It is the entire mortgage market. As home prices fall, defaults will rise sharply - period. And so will the patience of mortgage bondholders. Different classes of mortgage bonds from various risk pools are owned by different central banks, funds, pensions and investors all over the world.
Ultimately, the people in these secret Paulson meetings were probably less worried about saving the mortgage market than with saving themselves. Some might be looking at prison time. As chief of Goldman Sachs, Paulson was involved, to degrees as yet unrevealed, in the mortgage securitization process during the halcyon days of mortgage fraud from 2004 to 2006.
Paulson became the U.S. Treasury Secretary on July 10, 2006, after the extent of the debacle was coming into focus for those in the know. Goldman Sachs achieved recent accolades in the markets for having bet heavily against the housing market, while Citigroup, Morgan Stanley, Bear Sterns, Merrill Lynch and others got hammered for failing to time the end of the credit bubble.
Goldman Sachs is the only major investment bank in the United States that has emerged as yet unscathed from this debacle. The success of its strategy must have resulted from fairly substantial bets against housing, mortgage banking and related industries, which also means that Goldman Sachs saw this coming at the same time they were bundling and selling these loans.
It is truly amazing that right now everyone in the country is deferring to Paulson and the heads of Countrywide, JPMorgan, Bank of America and others as the best group to work out a solution to this problem. No one is talking about the fact that these people created the problem and profited to the tune of hundreds of billions of dollars from it.
But don’t worry. We live in an age of Democracy & Capitalism...and the protectors (banks) are supposed to make sure the consumers don’t get hurt.
So it was that Henry Paulson came up with an idea...the ‘teaser freezer’ plan. It is being sold to the public as a way to protect homeowners . But it has another purpose,to help save the banks from their own bad judgment.
The ticking time bomb in the U.S. banking system is not resetting subprime mortgage rates,the real problem is the contractual ability of investors in mortgage bonds to require banks to buy back the loans at face value if there was fraud in the origination process.
And, to be sure, fraud is everywhere. It’s in the loan application documents, and it’s in the appraisals. There are e-mails and memos floating around showing that many people in banks, investment banks and appraisal companies – all the way up to senior management – knew about it.
The catastrophic consequences of bond investors forcing originators to buy back loans at face value are beyond the current media discussion. The loans at issue dwarf the capital available at the largest U.S. banks combined, and investor lawsuits would raise stunning liability sufficient to cause even the largest U.S. banks to fail, resulting in massive taxpayer-funded bailouts of Fannie and Freddie, and even FDIC.
The problem isn’t just subprime loans. It is the entire mortgage market. As home prices fall, defaults will rise sharply - period. And so will the patience of mortgage bondholders. Different classes of mortgage bonds from various risk pools are owned by different central banks, funds, pensions and investors all over the world.
Ultimately, the people in these secret Paulson meetings were probably less worried about saving the mortgage market than with saving themselves. Some might be looking at prison time. As chief of Goldman Sachs, Paulson was involved, to degrees as yet unrevealed, in the mortgage securitization process during the halcyon days of mortgage fraud from 2004 to 2006.
Paulson became the U.S. Treasury Secretary on July 10, 2006, after the extent of the debacle was coming into focus for those in the know. Goldman Sachs achieved recent accolades in the markets for having bet heavily against the housing market, while Citigroup, Morgan Stanley, Bear Sterns, Merrill Lynch and others got hammered for failing to time the end of the credit bubble.
Goldman Sachs is the only major investment bank in the United States that has emerged as yet unscathed from this debacle. The success of its strategy must have resulted from fairly substantial bets against housing, mortgage banking and related industries, which also means that Goldman Sachs saw this coming at the same time they were bundling and selling these loans.
It is truly amazing that right now everyone in the country is deferring to Paulson and the heads of Countrywide, JPMorgan, Bank of America and others as the best group to work out a solution to this problem. No one is talking about the fact that these people created the problem and profited to the tune of hundreds of billions of dollars from it.
Monday, December 3, 2007
Moslems Without Islam
If we are to contribute toward the development and betterment of arab societies, we must raise the issue how the Muslim world can regain its purpose & vitality, and how it can respond successfully to the challenges that it is now faced with?
One, the strength of government does not materialize except through implementation of justice, equality among all citizens, protection of private property, and freedom for all.
Two, government cannot gain strength except through its people.
Three, people cannot be sustained except by wealth.
Four, wealth cannot be acquired except through development.
Five, development cannot be attained except through justice.
Six, justice is the criterion by which God will evaluate mankind.
Seventh, government is charged with the responsibility of actualizing justice.
The human being must be at the centre of any development because the rise and fall of civilizations is closely dependent on the well-being or misery of the people.
If human beings are the focus, then development and justice become the most crucial links in the chain of causation. Development is essential because unless there is a perceptible improvement in the well-being of the people, they will not be motivated to do their best . Moreover, in the absence of development, the inflow of scholars, artisans, labour and capital that need to take place from other societies to boost development further may not take place . This may make it difficult to sustain development and may lead ultimately to a decline .
Development does not refer to merely economic growth. It encompasses all-round human development . Economic development cannot be brought about by economic forces alone in isolation of non-economic sectors of the society.
It needs moral, social, political and demographic support. If this support does not become available, economic development may not get triggered, and if it does, it may not be sustainable. Development is, however, not possible without justice. However, justice, like development, is also not conceived in a narrow economic sense but rather in the more comprehensive sense of justice in all spheres of human life.
Anyone who confiscates the property of someone or forces him to work for him, or presses an unjustified claim against him, or imposes on him a duty not required by law has committed injustice. Collection of unjustified taxes is also injustice; transgression on another’s property or taking it away by force or theft constitutes injustice; denying other people their rights is also injustice . One of the greatest injustices and the most destructive of development is the unjustified imposition of tasks on people and subjecting them to forced labour.
The extent to which property rights are infringed determines the extent to which the incentive to earn and acquire it goes. If the incentive is gone, they refrain from earning. This adversely affects their efficiency, innovativeness, entrepreneurship, drive and other qualities, ultimately leading to the society’s disintegration and decline.
Justice, however, necessitates certain rules of behaviour which include economics and moral values in religious worldviews. They are the standards by which people interact with, and fulfill their obligations towards each other.
Divine Laws command the doing of good and prohibit the doing of what is evil and destructive.
The Divine laws can only give rules of behaviour, it cannot itself enforce them. It is the responsibility of the political authority to ensure compliance through incentives and deterrents . The political authority has the same relationship to a civilization as form has to matter .It is not possible to conceive of political authority without civilization and of civilization without political authority . Good rulership is equivalent to gentleness and if the ruler is tyrannical and harsh in punishments . . . the people become fearful and depressed and seek to protect themselves by means of lies, ruses and deception. This becomes their character trait. Their perceptions and character become corrupted . . .. They may conspire to kill him.
Recognition of private property and respect for individual freedom within the constraints of moral values .The job of the state is, in addition to defense and maintenance of law and order, to ensure justice, fulfillment of contracts, removal of grievances, fulfillment of needs and compliance with the rules of behaviour.8 In other words, the state must do things that help people carry on their lawful businesses more effectively and prevent them from committing excesses and injustices against each other.
It is undesirable for the government authority to get directly involved in economic activity. Doing so will not only hurt the people by reducing their opportunities and
profits (now termed as crowding out of the private sector) but also reduce the state’s tax revenue. Thus, the state must neither be a laissez faire state nor a totalitarian state. It is rather a state which ensures the prevalence justice, protection of private property and
serves as an instrument for accelerating human development and well-being .
Wealth provides the resources that are needed for ensuring justice and development, the effective performance of its role by the government , and the well-being of all people.
Wealth does not depend on the stars , or the existence of gold and silver mines . It depends rather on economic activities and, the largeness of the market, incentives and facilities provided by the government and tools , which in turn depend on saving or the surplus left after satisfying the needs of the people. The greater the activity, the greater will be the income. Higher income will contribute to larger savings and greater investment in tools which will in turn contribute to greater development and wealth . we must emphasize the role of investment further by saying: wealth does not grow when hoarded and amassed in safes. It rather grows and expands when it is spent for the well-being of the people, for giving them their rights, and for removing their hardships. This makes the people better off, strengthens the government , makes the times prosperous, and enhances its prestige . Factors that act as catalysts are low rates of taxes , security of life and property , and a healthy physical environment amply provided with trees and water and other essential amenities of life .
Wealth also depends on division of labour and specialization, the greater the specialization the higher will be the growth of wealth. Individual human beings cannot by themselves satisfy all their needs. They must cooperate for this purpose in their civilization. The needs that can be satisfied by the cooperation of a group exceed many times what they can produce individually .
The surplus is spent to provide the goods of luxury and to satisfy the needs of inhabitants
of other cities. They import other goods in exchange for these. They will then have more wealth .Greater prosperity enables them to have luxury and the things that go with it, such as elegant houses, clothes and utensils, and the use of servants and carriages . . . Consequently, industry and crafts thrive . Human beings do not allow their labour to be used free. Therefore, division of labour will take place only when exchange is possible.
This requires well-regulated markets which enable people to exchange and fulfill their needs .
A rise in incomes and wealth contributes to a rise in tax revenues and enables the government to spend more on the people’s well-being. This leads to an expansion in economic opportunities and greater development, which, in turn, induces a natural rise in population and also the immigration of skilled and unskilled labour and scholars from other places , thus further strengthening the human and intellectual capital of that society. Such a rise in population boosts the demand for goods and services, and thereby promotes industries), raises incomes, promotes sciences and education , and further accelerates development . In the beginning, prices tend to decline with the rise in development and production. However, if demand keeps on rising and the supply is unable to keep pace with it, scarcities develop, leading to a rise in the prices of goods and services. The prices of necessities tend to rise faster than those of luxuries, and prices in urban areas rise faster than those in rural areas.
The cost of labour also rises and so do taxes. These lead to a further rise in prices, which creates hardship for people and leads to a reversal in the flow of population. Development declines and along with it prosperity and civilization .
The strength or weakness of civilization depends on the strength or weakness
of the political authority which it embodies. The survival of the political authority depends ultimately on the well-being of the people which it must try to ensure by providing a proper environment for actualizing development as well as justice . If the political authority is corrupt and incompetent and not accountable before the people, it will not perform its functions conscientiously. Consequently, the resources at its disposal will not get effectively utilized and the services that need to be provided to facilitate development will not become available. Development as well as well-being will then suffer. Unless there is development, the resources needed to enable the society as well as the government to meet the challenges that they face and to actualize their socio-economic goals will not expand.
One, the strength of government does not materialize except through implementation of justice, equality among all citizens, protection of private property, and freedom for all.
Two, government cannot gain strength except through its people.
Three, people cannot be sustained except by wealth.
Four, wealth cannot be acquired except through development.
Five, development cannot be attained except through justice.
Six, justice is the criterion by which God will evaluate mankind.
Seventh, government is charged with the responsibility of actualizing justice.
The human being must be at the centre of any development because the rise and fall of civilizations is closely dependent on the well-being or misery of the people.
If human beings are the focus, then development and justice become the most crucial links in the chain of causation. Development is essential because unless there is a perceptible improvement in the well-being of the people, they will not be motivated to do their best . Moreover, in the absence of development, the inflow of scholars, artisans, labour and capital that need to take place from other societies to boost development further may not take place . This may make it difficult to sustain development and may lead ultimately to a decline .
Development does not refer to merely economic growth. It encompasses all-round human development . Economic development cannot be brought about by economic forces alone in isolation of non-economic sectors of the society.
It needs moral, social, political and demographic support. If this support does not become available, economic development may not get triggered, and if it does, it may not be sustainable. Development is, however, not possible without justice. However, justice, like development, is also not conceived in a narrow economic sense but rather in the more comprehensive sense of justice in all spheres of human life.
Anyone who confiscates the property of someone or forces him to work for him, or presses an unjustified claim against him, or imposes on him a duty not required by law has committed injustice. Collection of unjustified taxes is also injustice; transgression on another’s property or taking it away by force or theft constitutes injustice; denying other people their rights is also injustice . One of the greatest injustices and the most destructive of development is the unjustified imposition of tasks on people and subjecting them to forced labour.
The extent to which property rights are infringed determines the extent to which the incentive to earn and acquire it goes. If the incentive is gone, they refrain from earning. This adversely affects their efficiency, innovativeness, entrepreneurship, drive and other qualities, ultimately leading to the society’s disintegration and decline.
Justice, however, necessitates certain rules of behaviour which include economics and moral values in religious worldviews. They are the standards by which people interact with, and fulfill their obligations towards each other.
Divine Laws command the doing of good and prohibit the doing of what is evil and destructive.
The Divine laws can only give rules of behaviour, it cannot itself enforce them. It is the responsibility of the political authority to ensure compliance through incentives and deterrents . The political authority has the same relationship to a civilization as form has to matter .It is not possible to conceive of political authority without civilization and of civilization without political authority . Good rulership is equivalent to gentleness and if the ruler is tyrannical and harsh in punishments . . . the people become fearful and depressed and seek to protect themselves by means of lies, ruses and deception. This becomes their character trait. Their perceptions and character become corrupted . . .. They may conspire to kill him.
Recognition of private property and respect for individual freedom within the constraints of moral values .The job of the state is, in addition to defense and maintenance of law and order, to ensure justice, fulfillment of contracts, removal of grievances, fulfillment of needs and compliance with the rules of behaviour.8 In other words, the state must do things that help people carry on their lawful businesses more effectively and prevent them from committing excesses and injustices against each other.
It is undesirable for the government authority to get directly involved in economic activity. Doing so will not only hurt the people by reducing their opportunities and
profits (now termed as crowding out of the private sector) but also reduce the state’s tax revenue. Thus, the state must neither be a laissez faire state nor a totalitarian state. It is rather a state which ensures the prevalence justice, protection of private property and
serves as an instrument for accelerating human development and well-being .
Wealth provides the resources that are needed for ensuring justice and development, the effective performance of its role by the government , and the well-being of all people.
Wealth does not depend on the stars , or the existence of gold and silver mines . It depends rather on economic activities and, the largeness of the market, incentives and facilities provided by the government and tools , which in turn depend on saving or the surplus left after satisfying the needs of the people. The greater the activity, the greater will be the income. Higher income will contribute to larger savings and greater investment in tools which will in turn contribute to greater development and wealth . we must emphasize the role of investment further by saying: wealth does not grow when hoarded and amassed in safes. It rather grows and expands when it is spent for the well-being of the people, for giving them their rights, and for removing their hardships. This makes the people better off, strengthens the government , makes the times prosperous, and enhances its prestige . Factors that act as catalysts are low rates of taxes , security of life and property , and a healthy physical environment amply provided with trees and water and other essential amenities of life .
Wealth also depends on division of labour and specialization, the greater the specialization the higher will be the growth of wealth. Individual human beings cannot by themselves satisfy all their needs. They must cooperate for this purpose in their civilization. The needs that can be satisfied by the cooperation of a group exceed many times what they can produce individually .
The surplus is spent to provide the goods of luxury and to satisfy the needs of inhabitants
of other cities. They import other goods in exchange for these. They will then have more wealth .Greater prosperity enables them to have luxury and the things that go with it, such as elegant houses, clothes and utensils, and the use of servants and carriages . . . Consequently, industry and crafts thrive . Human beings do not allow their labour to be used free. Therefore, division of labour will take place only when exchange is possible.
This requires well-regulated markets which enable people to exchange and fulfill their needs .
A rise in incomes and wealth contributes to a rise in tax revenues and enables the government to spend more on the people’s well-being. This leads to an expansion in economic opportunities and greater development, which, in turn, induces a natural rise in population and also the immigration of skilled and unskilled labour and scholars from other places , thus further strengthening the human and intellectual capital of that society. Such a rise in population boosts the demand for goods and services, and thereby promotes industries), raises incomes, promotes sciences and education , and further accelerates development . In the beginning, prices tend to decline with the rise in development and production. However, if demand keeps on rising and the supply is unable to keep pace with it, scarcities develop, leading to a rise in the prices of goods and services. The prices of necessities tend to rise faster than those of luxuries, and prices in urban areas rise faster than those in rural areas.
The cost of labour also rises and so do taxes. These lead to a further rise in prices, which creates hardship for people and leads to a reversal in the flow of population. Development declines and along with it prosperity and civilization .
The strength or weakness of civilization depends on the strength or weakness
of the political authority which it embodies. The survival of the political authority depends ultimately on the well-being of the people which it must try to ensure by providing a proper environment for actualizing development as well as justice . If the political authority is corrupt and incompetent and not accountable before the people, it will not perform its functions conscientiously. Consequently, the resources at its disposal will not get effectively utilized and the services that need to be provided to facilitate development will not become available. Development as well as well-being will then suffer. Unless there is development, the resources needed to enable the society as well as the government to meet the challenges that they face and to actualize their socio-economic goals will not expand.
Rothschilds & Rockefellers - Terrorists Or Bankers
Money is Power", or shall we say, "The Monopoly to Create Credit Money and charge interest is Absolute Power". (Alex James)
Amsel (Amschel) Bauer Mayer Rothschild, 1838:
"Let me issue and control a Nation's money and I care not who makes its laws".
Letter written from London by the Rothschilds to their New York agents introducing their banking method into America: "The few who can understand the system will be either so interested in its profits, or so dependent on its favours, that there will be no opposition from that class, while, on the other hand, that great body of people, mentally incapable of comprehending the tremendous advantage that Capital derives from the system, will bear its burden without complaint and, perhaps, without even suspecting that the system is inimical to their interests."
Nathan Rothschild said to the Commons Secret Committee on the question early in 1819: "In what line of business are you? - Mostly in the foreign banking line. "Have the goodness to state to the Committee in detail, what you conceive would be the consequence of an obligation imposed upon the Bank [of England, which he owned] to resume cash payments at the expiration of a year from the present time? - I do not think it can be done without very great distress to this country; it would do a great deal of mischief; we may not actually know ourselves what mischief it might cause. "Have the goodness to explain the nature of the mischief, and in what way it would be produced? - Money will be so very scarce, every article in this country will fall to such an enormous extent, that many persons will be ruined."
The director of the Prussian Treasury wrote on a visit to London that Nathan Rothschild had as early as 1817: ".., incredible influence upon all financial affairs here in London. It is widely stated.., that he entirely regulates the rate of exchange in the City. His power as a banker is enormous".
Austrian Prince Mettemich's secretary wrote of the Rothschilds, as early as 1818, that: "... they are the richest people in Europe."
Referring to James Rothschild, the poet Heinrich Heine said: "Money is the god of our times, and Rothschild is his prophet."
James Rothschild built his fabulous mansion, called Ferrilres, 19 miles north-east of Paris. Wilhelm I, on first seeing it, exclaimed: "Kings couldn't afford this. It could only belong to a Rothschild!"
Author Frederic Morton wrote that the Rothschilds had: "conquered the World more thoroughly, more cunningly, and much more lastingly than all the Caesars before..."
As Napoleon pointed out: "Terrorism, War & Bankruptcy are caused by the privatization of money, issued as a debt and compounded by interest "- he cancelled debt and interest in France - hence the Battle of Waterloo.
Some writers have claimed that Nathan Rothschild "warned that the United States would find itself involved in a most disastrous war if the bank's charter were not renewed." (do you see the similarities here? If you don't play the game an economic disaster will fall on you and you will be destroyed.)
"There is but one power in Europe and that is Rothschild." 19th century French commentator.
Lord Rothschild (Rockefellers and Rothschilds' relatives) in his book The Shadow of a Great Man quotes a letter sent from Davidson on June 24, 1814 to Nathan Rothschild, "As long as a house is like yours, and as long as you work together with your brothers, not a house in the world will be able to compete with you, to cause you harm or to take advantage of you, for together you can undertake and perform more than any house in the world." The closeness of the Rothschild brothers is seen in a letter from Soloman (Salmon) Rothschild to his brother Nathan on Feb. 28, 1815, "We are like the mechanism of a watch: each part is essential." (2) This closeness is further seen in that of the 18 marriages made by Mayer Amschel Rothschild's grandchildren - 16 were contracted between first cousins.
"Centralisation of credit in the hands of the state, by means of a national bank with state capital and an exclusive monopoly." The Communist Manifesto. In the case of the Bolshevik revolution, Rothschilds/ Rockefellers' Chase Bank owned the state. In the US, the FED owners "own" the state.
Rothschilds' favorite saying who along with the Rockefellers are the major Illuminati Banking Dynasties: "Who controls the issuance of money controls the government!"
Nathan Rothschild said (1777-1836): "I care not what puppet is placed on the throne of England to rule the Empire. The man who controls Britain's money supply controls the British Empire and I control the British money supply."
Rockefeller is reported to have said: "Competition is a sin". "Own nothing. Control everything". Because he wants to centralize control of everything and enslave us all, i.e. the modern Nimrod or Pharaoh.
The Rothschild were behind the colonization and occupations of India and the Rothschild owned British Petroleum was granted unlimited rights to all offshore Indian oil, which is still valid till this day.
"Give me the control of the credit of a nation, and I care not who makes the laws." The famous boastful statement of Nathaniel Meyer Rothschild, speaking to a group of international bankers, 1912: "The few who could understand the system (cheque, money, credits) will either be so interested in its profits, or so dependent on its favours, that there will be no opposition from that class, while on the other hand, the great body of people, mentally incapable of comprehending the tremendous advantage that capital derives from the system, will bear its burdens without complaint, and perhaps without even suspecting that the system is inimical to their interests." The boastful statement by Rothschild Bros. of London.
These people are the top masterminds and conspired for the creation of illegal FEDERAL RESERVE BANK in 1913: Theodore Roosevelt, Paul Warburg - Representative Of Rothschild, Woodrow Wilson - U.S. President Signed FED Into Act, Nelson W. Aldrich - Representative Of Rockefeller, Benjamin Strong - Representative Of Rockefeller, Frank A. Vanderlip - Representative Of Rockefeller, John D. Rockefeller - Rockefeller Himself, Henry Davison - Representative Of J. P. Morgan, Charles Norton - Representative Of J. P. Morgan.
In the last century, members of the British Fabian Society dynastic banking families in the City of London financed the Communist takeover of Russia. Trotsky in his biography refers to some of the loans from these British financiers going back as far as 1907. By 1917 the major subsidies and funding for the Bolshevik Revolution were co-ordinated and arranged by Sir George Buchanan and Lord Alfred Milner. [no doubt using money from Cecil Rhodes' South African gold and diamond legacy - Ed] The Communist system in Russia was a "British experiment" designed ultimately to become the Fabian Socialist model for the British takeover of the World through the UN and EU. The British plan to takeover the World and bring in a "New World Order" began with the teachings of John Ruskin and Cecil Rhodes at Oxford University. Rhodes in one of his wills in 1877 left his vast fortune to Lord Nathan Rothschild as trustee to set up the Rhodes Scholarship Program at Oxford to indoctrinate promising young graduates for the purpose, and also establish a secret society [Royal Institute of International Affairs RIIA, which branched into the Round Table, the Bilderbergers, the CFR, the Trilateral, etc -- Ed] for leading business and banking leaders around the World who would work for the City to bring in their Socialist World government.
Rothschild appointed Lord Alfred Milner to implement the plan.
Benjamin Freedman (Friedman) said this in 1961, Washington (he was a millionaire insider in international Zionist organizations, friend to 4 US presidents, and was also part of the 117-man strong Zionist delegation at the signing of the Treaty of Versailles in 1919 where Germany was forced into bankruptcy to the Zionist BankLords and social chaos): "Two years into WW1, Germany, which was then winning the war, offered Britain and France a negotiated peace deal, but German Zionist groups seeing the opportunity made a deal with Britain to get the United States into the war if Britain promised to give the Zionists Palestine."
In other words, they made this deal: "We will get the United States into this war as your ally. The price you must pay us is Palestine after you have won the war and defeated Germany, Austria-Hungary, and Turkey." They made that promise, in October of 1916. And shortly after that -- I don't know how many here remember it -- the United States, which was almost totally pro-German because the newspapers and mass communications media here were controlled by the Zionist bankers who owned the major commercial banks and the 12 Federal Reserve Banks (the original Stockholders of the Federal Reserve Banks in 1913 were the Rockefeller' s, JP Morgan, Rothschild's, Lazard Freres, Schoellkopf, Kuhn-Loeb, Warburgs, Lehman Brothers and Goldman Sachs, all with roots in Germany's Zionists like the British Royal family, J.P. Morgan, Carnegie, Bush, Rumsfeld, Clintons, the Nazis that were brought into the CIA, etc. http://land.netonecom.net/tlp/ref/federal_reserve.shtml ) and they were pro-German because they wanted to use Germany to destroy the Czar of Russia and let the Communists whom they funded take over. The German Zionist bankers -- Rothschilds, Rockefeller, Kuhn Loeb and the other big banking firms in the United States refused to finance France or England to the extent of one dollar. They stood aside and they said: "As long as France and England are tied up with Russia, not one cent!" They poured money into Germany, fighting with Germany against Russia, to lick the Czarist regime. The newspapers had been all pro-German, where they'd been telling the people of the difficulties that Germany was having fighting Great Britain commercially and in other respects, then after making the deal with the British for Palestine, all of a sudden the Germans were no good. They were villains. They were Huns. They were shooting Red Cross nurses. They were cutting off babies' hands. And they were no good. The Zionists in London sent cables to the US, to Justice Brandeis: "Go to work on President Wilson. We're getting from England what we want. Now you go to work, and you go to work on President Wilson and get the US into the war." And that did happen. Shortly after President Woodrow Wilson declared war on Germany.
The power of the Rothschild family was evidenced on 24 Sept 2002 when a helicopter touched down on the lawn of Waddedson Manor, their ancestral home in Buckinghamshire, England. Out of the helicopter strode Warren Buffet, - touted as the second richest man in the World but really a lower ranking player- and Arnold Schwarzenegger (the gropinator), at that time a candidate for the Governorship of California. Also in attendance at this two day meeting of the World's most powerful businessmen and financiers hosted by Jacob Rothschild were James Wolfensohn, president of the World Bank and Nicky Oppenheimer, chairman of De Beers. Arnold went on to secure the governorship of one of the biggest economies on the planet a year later. That he was initiated into the ruling class in the Rothschilds' English country manor suggests that the centre of gravity of the three hundred trillion dollar cartel is in the U.K. and Europe not the U.S.
A recent article in the London Financial Times indicates why it is impossible to gain an accurate estimate of the wealth of the trillionaire bankers. Discussing the sale of Evelyn Rothschild's stake in Rothschild Continuation Holdings, it states: ...[this] requires agreement on the valuation of privately held assets whose value has never been tested in a public market. Most of these assets are held in a complex network of tax-efficient structures around the World.
Queen Elizabeth II's shareholdings remain hidden behind Bank of England Nominee accounts. The Guardian newspaper reported in May 2002 ... "the reason for the wild variations in valuations of her private wealth can be pinned on the secrecy over her portfolio of share investments. This is because her subjects have no way of knowing through a public register of interests where she, as their head of state, chooses to invest her money. Unlike the members of the Commons and now the Lords, the Queen does not have to annually declare her interests and as a result her subjects cannot question her or know about potential conflicts of interests..." In fact, the Queen even has an extra mechanism to ensure that her investments remain secret - a nominee company called the Bank of England Nominees. It has been available for decades to the entire World's current heads of state to allow them anonymity when buying shares. Therefore, when a company publishes a share register and the Bank of England Nominees is listed, it is not possible to gauge whether the Queen, President Bush or even Saddam Hussein is the true shareholder.
By this method, the trillionaire masters of the universe remain hidden whilst Forbes magazine poses lower ranking billionaires like Bill Gates and Warren Buffett as the richest men in the World. Retired management consultant Gaylon Ross Sr, author of Who's Who of the Global Elite, has been tipped from a private source that the combined wealth of the Rockefeller family in 1998 was approx (US) $11 trillion and the Rothschilds (U.S.) $100 trillion. However something of an insider's knowledge of the hidden wealth of the elite is contained in the article, "Will the Dollar and America Fall Down on August 19?.." on page 1 of the 12th July 2001 issue of Russian newspaper Pravda. The newspaper interviewed Tatyana Koryagina, a senior research fellow in the Institute of Macroeconomic Researches subordinated to the Russian Ministry of Economic Development (Minekonom) on the subject of a recent conference concerning the fate of the U.S. economy:
Koryagina: The known history of civilization is merely the visible part of the iceberg. There is a shadow economy, shadow politics and also a shadow history, known to conspirologists. There are [unseen] forces acting in the World, unstoppable for [most powerful] countries and even continents.
Ashley Mote (EU): "Mr President, I wish to draw your attention to the Global Security Fund, set up in the early 1990s under the auspices of Jacob Rothschild. This is a Brussels-based fund and it is no ordinary fund: it does not trade, it is not listed and it has a totally different purpose. It is being used for geopolitical engineering purposes, apparently under the guidance of the intelligence services." "I have previously asked about the alleged involvement of the European Union's own intelligence resources in the management of slush funds in offshore accounts, and I still await a reply. To that question I now add another: what are the European Union's connections to the Global Security Fund and what relationship does it have with European Union institutions? "Recently, Ashley Mote of the European Union (EU) asked this volatile question in a public EU meeting, a question never answered, as Mr. Mote, merely by asking this question, was immediately scratched from the White House Christmas card list and placed on its top ten hit list. The Illuminati's cash cow, grazing freely on the World wide pasture of greenbacks, isn't called "Elsie" but instead is called the Global Security Fund, a name actually meaning in the secret cult's language Global Terrorist Fund. In simple terms, it's a gigantic illegal trust fund, estimated by undercover overseas financial investigators at 65 trillion dollars, set-up for "Illuminati rainy days" and established when it is desperately needed in a pinch for bribery, assassinations and sponsoring World wide terrorist activities to divert attention from their banking mafia. Although the fund is cloaked in secrecy and made possible by the Western civilization' s Federal Reserve banking system, investigators trying to pry into the Illuminati's secret treasure trove have uncovered some interesting facts.
Amsel (Amschel) Bauer Mayer Rothschild, 1838:
"Let me issue and control a Nation's money and I care not who makes its laws".
Letter written from London by the Rothschilds to their New York agents introducing their banking method into America: "The few who can understand the system will be either so interested in its profits, or so dependent on its favours, that there will be no opposition from that class, while, on the other hand, that great body of people, mentally incapable of comprehending the tremendous advantage that Capital derives from the system, will bear its burden without complaint and, perhaps, without even suspecting that the system is inimical to their interests."
Nathan Rothschild said to the Commons Secret Committee on the question early in 1819: "In what line of business are you? - Mostly in the foreign banking line. "Have the goodness to state to the Committee in detail, what you conceive would be the consequence of an obligation imposed upon the Bank [of England, which he owned] to resume cash payments at the expiration of a year from the present time? - I do not think it can be done without very great distress to this country; it would do a great deal of mischief; we may not actually know ourselves what mischief it might cause. "Have the goodness to explain the nature of the mischief, and in what way it would be produced? - Money will be so very scarce, every article in this country will fall to such an enormous extent, that many persons will be ruined."
The director of the Prussian Treasury wrote on a visit to London that Nathan Rothschild had as early as 1817: ".., incredible influence upon all financial affairs here in London. It is widely stated.., that he entirely regulates the rate of exchange in the City. His power as a banker is enormous".
Austrian Prince Mettemich's secretary wrote of the Rothschilds, as early as 1818, that: "... they are the richest people in Europe."
Referring to James Rothschild, the poet Heinrich Heine said: "Money is the god of our times, and Rothschild is his prophet."
James Rothschild built his fabulous mansion, called Ferrilres, 19 miles north-east of Paris. Wilhelm I, on first seeing it, exclaimed: "Kings couldn't afford this. It could only belong to a Rothschild!"
Author Frederic Morton wrote that the Rothschilds had: "conquered the World more thoroughly, more cunningly, and much more lastingly than all the Caesars before..."
As Napoleon pointed out: "Terrorism, War & Bankruptcy are caused by the privatization of money, issued as a debt and compounded by interest "- he cancelled debt and interest in France - hence the Battle of Waterloo.
Some writers have claimed that Nathan Rothschild "warned that the United States would find itself involved in a most disastrous war if the bank's charter were not renewed." (do you see the similarities here? If you don't play the game an economic disaster will fall on you and you will be destroyed.)
"There is but one power in Europe and that is Rothschild." 19th century French commentator.
Lord Rothschild (Rockefellers and Rothschilds' relatives) in his book The Shadow of a Great Man quotes a letter sent from Davidson on June 24, 1814 to Nathan Rothschild, "As long as a house is like yours, and as long as you work together with your brothers, not a house in the world will be able to compete with you, to cause you harm or to take advantage of you, for together you can undertake and perform more than any house in the world." The closeness of the Rothschild brothers is seen in a letter from Soloman (Salmon) Rothschild to his brother Nathan on Feb. 28, 1815, "We are like the mechanism of a watch: each part is essential." (2) This closeness is further seen in that of the 18 marriages made by Mayer Amschel Rothschild's grandchildren - 16 were contracted between first cousins.
"Centralisation of credit in the hands of the state, by means of a national bank with state capital and an exclusive monopoly." The Communist Manifesto. In the case of the Bolshevik revolution, Rothschilds/ Rockefellers' Chase Bank owned the state. In the US, the FED owners "own" the state.
Rothschilds' favorite saying who along with the Rockefellers are the major Illuminati Banking Dynasties: "Who controls the issuance of money controls the government!"
Nathan Rothschild said (1777-1836): "I care not what puppet is placed on the throne of England to rule the Empire. The man who controls Britain's money supply controls the British Empire and I control the British money supply."
Rockefeller is reported to have said: "Competition is a sin". "Own nothing. Control everything". Because he wants to centralize control of everything and enslave us all, i.e. the modern Nimrod or Pharaoh.
The Rothschild were behind the colonization and occupations of India and the Rothschild owned British Petroleum was granted unlimited rights to all offshore Indian oil, which is still valid till this day.
"Give me the control of the credit of a nation, and I care not who makes the laws." The famous boastful statement of Nathaniel Meyer Rothschild, speaking to a group of international bankers, 1912: "The few who could understand the system (cheque, money, credits) will either be so interested in its profits, or so dependent on its favours, that there will be no opposition from that class, while on the other hand, the great body of people, mentally incapable of comprehending the tremendous advantage that capital derives from the system, will bear its burdens without complaint, and perhaps without even suspecting that the system is inimical to their interests." The boastful statement by Rothschild Bros. of London.
These people are the top masterminds and conspired for the creation of illegal FEDERAL RESERVE BANK in 1913: Theodore Roosevelt, Paul Warburg - Representative Of Rothschild, Woodrow Wilson - U.S. President Signed FED Into Act, Nelson W. Aldrich - Representative Of Rockefeller, Benjamin Strong - Representative Of Rockefeller, Frank A. Vanderlip - Representative Of Rockefeller, John D. Rockefeller - Rockefeller Himself, Henry Davison - Representative Of J. P. Morgan, Charles Norton - Representative Of J. P. Morgan.
In the last century, members of the British Fabian Society dynastic banking families in the City of London financed the Communist takeover of Russia. Trotsky in his biography refers to some of the loans from these British financiers going back as far as 1907. By 1917 the major subsidies and funding for the Bolshevik Revolution were co-ordinated and arranged by Sir George Buchanan and Lord Alfred Milner. [no doubt using money from Cecil Rhodes' South African gold and diamond legacy - Ed] The Communist system in Russia was a "British experiment" designed ultimately to become the Fabian Socialist model for the British takeover of the World through the UN and EU. The British plan to takeover the World and bring in a "New World Order" began with the teachings of John Ruskin and Cecil Rhodes at Oxford University. Rhodes in one of his wills in 1877 left his vast fortune to Lord Nathan Rothschild as trustee to set up the Rhodes Scholarship Program at Oxford to indoctrinate promising young graduates for the purpose, and also establish a secret society [Royal Institute of International Affairs RIIA, which branched into the Round Table, the Bilderbergers, the CFR, the Trilateral, etc -- Ed] for leading business and banking leaders around the World who would work for the City to bring in their Socialist World government.
Rothschild appointed Lord Alfred Milner to implement the plan.
Benjamin Freedman (Friedman) said this in 1961, Washington (he was a millionaire insider in international Zionist organizations, friend to 4 US presidents, and was also part of the 117-man strong Zionist delegation at the signing of the Treaty of Versailles in 1919 where Germany was forced into bankruptcy to the Zionist BankLords and social chaos): "Two years into WW1, Germany, which was then winning the war, offered Britain and France a negotiated peace deal, but German Zionist groups seeing the opportunity made a deal with Britain to get the United States into the war if Britain promised to give the Zionists Palestine."
In other words, they made this deal: "We will get the United States into this war as your ally. The price you must pay us is Palestine after you have won the war and defeated Germany, Austria-Hungary, and Turkey." They made that promise, in October of 1916. And shortly after that -- I don't know how many here remember it -- the United States, which was almost totally pro-German because the newspapers and mass communications media here were controlled by the Zionist bankers who owned the major commercial banks and the 12 Federal Reserve Banks (the original Stockholders of the Federal Reserve Banks in 1913 were the Rockefeller' s, JP Morgan, Rothschild's, Lazard Freres, Schoellkopf, Kuhn-Loeb, Warburgs, Lehman Brothers and Goldman Sachs, all with roots in Germany's Zionists like the British Royal family, J.P. Morgan, Carnegie, Bush, Rumsfeld, Clintons, the Nazis that were brought into the CIA, etc. http://land.netonecom.net/tlp/ref/federal_reserve.shtml ) and they were pro-German because they wanted to use Germany to destroy the Czar of Russia and let the Communists whom they funded take over. The German Zionist bankers -- Rothschilds, Rockefeller, Kuhn Loeb and the other big banking firms in the United States refused to finance France or England to the extent of one dollar. They stood aside and they said: "As long as France and England are tied up with Russia, not one cent!" They poured money into Germany, fighting with Germany against Russia, to lick the Czarist regime. The newspapers had been all pro-German, where they'd been telling the people of the difficulties that Germany was having fighting Great Britain commercially and in other respects, then after making the deal with the British for Palestine, all of a sudden the Germans were no good. They were villains. They were Huns. They were shooting Red Cross nurses. They were cutting off babies' hands. And they were no good. The Zionists in London sent cables to the US, to Justice Brandeis: "Go to work on President Wilson. We're getting from England what we want. Now you go to work, and you go to work on President Wilson and get the US into the war." And that did happen. Shortly after President Woodrow Wilson declared war on Germany.
The power of the Rothschild family was evidenced on 24 Sept 2002 when a helicopter touched down on the lawn of Waddedson Manor, their ancestral home in Buckinghamshire, England. Out of the helicopter strode Warren Buffet, - touted as the second richest man in the World but really a lower ranking player- and Arnold Schwarzenegger (the gropinator), at that time a candidate for the Governorship of California. Also in attendance at this two day meeting of the World's most powerful businessmen and financiers hosted by Jacob Rothschild were James Wolfensohn, president of the World Bank and Nicky Oppenheimer, chairman of De Beers. Arnold went on to secure the governorship of one of the biggest economies on the planet a year later. That he was initiated into the ruling class in the Rothschilds' English country manor suggests that the centre of gravity of the three hundred trillion dollar cartel is in the U.K. and Europe not the U.S.
A recent article in the London Financial Times indicates why it is impossible to gain an accurate estimate of the wealth of the trillionaire bankers. Discussing the sale of Evelyn Rothschild's stake in Rothschild Continuation Holdings, it states: ...[this] requires agreement on the valuation of privately held assets whose value has never been tested in a public market. Most of these assets are held in a complex network of tax-efficient structures around the World.
Queen Elizabeth II's shareholdings remain hidden behind Bank of England Nominee accounts. The Guardian newspaper reported in May 2002 ... "the reason for the wild variations in valuations of her private wealth can be pinned on the secrecy over her portfolio of share investments. This is because her subjects have no way of knowing through a public register of interests where she, as their head of state, chooses to invest her money. Unlike the members of the Commons and now the Lords, the Queen does not have to annually declare her interests and as a result her subjects cannot question her or know about potential conflicts of interests..." In fact, the Queen even has an extra mechanism to ensure that her investments remain secret - a nominee company called the Bank of England Nominees. It has been available for decades to the entire World's current heads of state to allow them anonymity when buying shares. Therefore, when a company publishes a share register and the Bank of England Nominees is listed, it is not possible to gauge whether the Queen, President Bush or even Saddam Hussein is the true shareholder.
By this method, the trillionaire masters of the universe remain hidden whilst Forbes magazine poses lower ranking billionaires like Bill Gates and Warren Buffett as the richest men in the World. Retired management consultant Gaylon Ross Sr, author of Who's Who of the Global Elite, has been tipped from a private source that the combined wealth of the Rockefeller family in 1998 was approx (US) $11 trillion and the Rothschilds (U.S.) $100 trillion. However something of an insider's knowledge of the hidden wealth of the elite is contained in the article, "Will the Dollar and America Fall Down on August 19?.." on page 1 of the 12th July 2001 issue of Russian newspaper Pravda. The newspaper interviewed Tatyana Koryagina, a senior research fellow in the Institute of Macroeconomic Researches subordinated to the Russian Ministry of Economic Development (Minekonom) on the subject of a recent conference concerning the fate of the U.S. economy:
Koryagina: The known history of civilization is merely the visible part of the iceberg. There is a shadow economy, shadow politics and also a shadow history, known to conspirologists. There are [unseen] forces acting in the World, unstoppable for [most powerful] countries and even continents.
Ashley Mote (EU): "Mr President, I wish to draw your attention to the Global Security Fund, set up in the early 1990s under the auspices of Jacob Rothschild. This is a Brussels-based fund and it is no ordinary fund: it does not trade, it is not listed and it has a totally different purpose. It is being used for geopolitical engineering purposes, apparently under the guidance of the intelligence services." "I have previously asked about the alleged involvement of the European Union's own intelligence resources in the management of slush funds in offshore accounts, and I still await a reply. To that question I now add another: what are the European Union's connections to the Global Security Fund and what relationship does it have with European Union institutions? "Recently, Ashley Mote of the European Union (EU) asked this volatile question in a public EU meeting, a question never answered, as Mr. Mote, merely by asking this question, was immediately scratched from the White House Christmas card list and placed on its top ten hit list. The Illuminati's cash cow, grazing freely on the World wide pasture of greenbacks, isn't called "Elsie" but instead is called the Global Security Fund, a name actually meaning in the secret cult's language Global Terrorist Fund. In simple terms, it's a gigantic illegal trust fund, estimated by undercover overseas financial investigators at 65 trillion dollars, set-up for "Illuminati rainy days" and established when it is desperately needed in a pinch for bribery, assassinations and sponsoring World wide terrorist activities to divert attention from their banking mafia. Although the fund is cloaked in secrecy and made possible by the Western civilization' s Federal Reserve banking system, investigators trying to pry into the Illuminati's secret treasure trove have uncovered some interesting facts.
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