SD Metals & Markets: Traders Throw Out the Kitchen Sink on Threat of Fed Taper!


On the this week’s Metals & Markets we discuss:

  • This week’s crash of everything but the dollar on the Fed’s mere threat of tapering QE by the end of the year
  • The recent pattern of the cartel hammering the metals after a FOMC statement as a 2-day event- with the major raid occurring on the day after the FOMC statement
  • Massive physical gold & silver demand with silver down 10% and gold over $100, resulting in premiums spiking back up and wholesalers again sold out of numerous silver products
  • Liquidity collapse/panic in China with overnight repo rates soaring to 25% and the PBOC stepping in to bail out the banking system
  • Where to from here for the metals?

SD Weekly Metals & Markets is Below:

Filling in for co-host Eric Dubin who was under the weather this week is Tyler (BullRun)



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2013 Gold Buffalo As Low As $59.99 Over Spot


  1. So much for the Chit Chat Doc. Where are Metals going forward from here?

  2. All we really need to do here to find where Gold and Silver are headed is to simply watch two things.
    1. The rise in interest on 10 year bonds. and 2. Related to the 10 year bond is the DXY.
    Ten year bonds are selling off like hot cakes. When the Ten Year bond and the DXY collide, then you and I may be enjoying the fruits in the rise of Gold and Silver and only till then. It’s just that simple. All the rest is Bullshit.

    • OK, ‘Splain that in more detail…
      It is very relevant to my situation. 
      Where is the collision point for 10Y Bonds and the Dollar Index? Dollar Index will go DOWN, 
      but that is likely after the Euro and Jap. YEN bottom out. Pretty sure on that one. But that 
      is ONLY if te bank$ter$ do not lose hold of the reigns before the orchestrated meltdown, and 
      it results in an all-out CRASH/BANG! 

  3. blabla lala

  4. Where to from here, i would say that given every logical reason so far has strongly suggested gold n silver should go parabolic and it has’nt, so based on the fact that it never does what it “should do”, it seems logical to me that gold n silver would continue to be pounded down, hence i see gold under $1000 and silver back to single figures ie below $10/ounce and staying their for a long time, because that is the opposite of what it should be doing, so based on everything that has occured in the past 2 years i believe were heading alot lower. Alot.

    • @Whodareswins:
      That is a novel theory, and really melds well with my overall thinking. I’m inclined to give it some credence. 
      It will likely be proven out, if TPTB can hold this house of cards together long enough to extract every last 
      cent from the current system that they deem feasible… But it could collapse at ANY TIME. However, some 
      of Ranger’s comments above make me think I see a pattern of what to watch for. Looking like BONDS will 
      hold on the longest, as an orderly exit out of a sinking DOW will funnel everyone into Bonds. I gotta watch 
      the indicators more closely, or actually watch more indicators. I have a good sum tied up in a 401A and it’s 
      iron-clad handcuffed, so I had better be the best economics student I can be, which given enough time, I 
      can easily surpass Bernank$ter’$ level of education, let’s say, oh, gimme about 2 weeks  :D 
      Your theory above makes perfect sense! Watch the indicators… 
      PS: Stand firm, and buy more if you can, DCA all the way to the bottom, and DCA all the way BACK UP! 
      DCA = Dollar Cost Averaging, FTW!

  5. My hope is i’m completely wrong because i bought in the mid 40′s, so i’m already down over 50% on my substantial investment, i have to hold on because i’d take a complete bath to get out now, i need the price back in the mid 40′s and beyond, so far all i’ve seen is downside cause all the sprukers convinced me that i had to buy now (mid 40′s) because a massive parabolic rise in the price was iminent, i thought i did well at the time, and i’m not alone many others did as well, but i’m not a lucky guy thats why i think the price will go way lower, i hope i’m wrong though.

    • I think if most are honest they are under water in their investment. But the worm will turn, you have to believe that. There are so many black swans on the horizon the bankers don’t have enough bullets to shoot them all down. War, civil unrest, economic implosion are all still on the table, nothing has changed. The system is going down, so sit tight.

    • I can honestly say I bought my first large purchase @ $18, and when it went down to $16 
      I started buying faster. DCA FTW! 
      I have also DCA’ed UP the scale too, but in smaller purchases.
      I even bought a single ounce, (ASE) right at $40. Maybe some “JUNK”

  6. gold and silver remind me of oil.  The harder it is to get, the more it costs, most of the time.  But there is a level at which gold, silver and oil are not economical to extract.  All are critical and all have a point at which the extraction costs outweigh the price.  Fracking costs between $60-70, making the fuss and bother  worth the cost and maybe a small return for all that effort. 
    Silver and gold prices are largely below their extraction costs. Therefore they will rebound once the supply drops far below the demand.  Then prices will rise.  It might take a few months but it has to happen. Otherwise the supply of silver will be so low that really critical problems arise. 
    Petroleum is so critical that the US has a 1 billion barrel strategic petroleum reserve. 
    Do we have a silver reserve?  No.
      Do we have a gold reserve?  No. 
      There will be a snap back point. Of that I am sure.

    • Especially as manufacturing/medical use can’t get their hands on physical silver. They will start to buy anything available and that will begin the price drive.

    • Agree, know most here despise comex, but my first indicator that the turn is coming will be large scale stopping and taking of delivery in the silver market, that will be the sign that the paper is truly cheaper than the physical.

  7. Rikards said it best, well, really summed up what I have been reading. The only tool left in Ben’s plans is a dollar devaluation to gold. Deflation is running alongside inflation. Could be the Chinese were clued in thus the massive gold purchases? Germany et. al. wanting gold repatriated? Comex, depository inventories down? I would wager Ben makes the devalue move this summer before he steps down in January 2014? The questions are, how does such a move play out in bonds, interest rates, equities, housing, food, copper, oil, and the 2014 midterm elections? I am watching Mongolia next week. The Royals have to bring online TRQ since the landslide in Utah. If TRQ rules the hour and Mongolia elects a favorable President, the Royal’s (read as satanist NWO types) will have their supply of gold, silver, copper regardless of current inventories, and at a higher premium after a US devaluation. My money is on TRQ stock and PM purchases M-W next week.

    • The election in Mongolia IS significant. Not only are we talking about the worlds largest copper deposit chock full of silver and gold in Turquoise Hill, Mongolia, China, Russia, and England are fighting over it. Russia is aligned with China. China has the electricity for time being. Mongolia wants more than the contractual 34% they agreed to. Rio Tinto, a British mining behemoth, has sunk in billions in the concern and disagrees with the current President. The next Mongolian President will decide the future for Mongolia. There is a classic NWO manipulated lineup of candidates against the recalcitrant incumbent, an ex wrestler and a woman, taking shape. The winner (I am betting on one of two of the Royal’s candidates to win) gets a huge geopolitical strategic victory. It means much worldwide that the satanist worshippers in Kensington Palace get the copper and gold. It could signal relief to the US to devalue to gold. It means the FED will get bullion to give back to Germany et. al.. It means they have the upperhand over China and their reserve currency plans. If Copper, Gold, Silver are deflated or inflated up, Britain, the ECB, the FED win a significant battle over China with this deposit. TRQ could go up 150% in a week. With the short plays in PM’s mostly played out, the switch to long positions could be breathtaking. You heard it first, here, by this casual observer.

    • That is the main thing that p!$$3$ me off about “being stuck in the markets” 
      I CAN’T BUY these hot stocks!!! 
      I’m stuck in some crappy mutual funds that Putnam set up for us years ago, and 
      the SEC shut Putnam down because they were losing money hand over fist during 
      one of the biggest Bull Markets in History!  grrrr

    • @RGR…you have a good job, union, in a great, stable state. Pay off the debts. Get liquid. I graduated from HS in Indiana, btw.  Watch Congress. The worst they could do is legislate a bail-in requiring a fixed interest rate instrument in lieu of current pension plans. Not sure where you go after Gov Pence, along with the muffed Tea Party loss after booting Luger, but a Tea Party mentality is what you and I need in the state capital. I am in South Carolina. 

  8. @UnderGround, etal,
    Do you know why the yield on the Ten year bond is rising? Are they being bought or sold? Can the Treasuries continue to get higher and higher interest as yields rise? Would the foreign countries that hold our debt cash in? Most probably. What would happen to the dollar when that occurs? How much money would The Fed need to print to buy down the bonds? There is not enough QE to buy down Trillions worth of bonds.
    The future is in The 10 year Bellwhether Bond yields and the dollar will lose it’s grip…..end of story. Gold and Silver will be the Crown jewels!

    • T-Bonds are being SOLD, which makes the yields go UP.
      I’m trying to figure out an exit point for my BONDS and also STOCKS.  
      But it’s locked into a 401A and I will have to flop it into one or the other, 
      kinda like a shell game, but I’m totally screwed if stocks and bonds tank 
      SIMULTANEOUSLY! Catch my drift there, Ranger-Man?
      School me on your opinions of the T-Bond Market

    • @undeRGRound
      What the f*** are doing on a Silver site invested in that shi*
      F*** muppet.

    • Just saw a chart of the US 10-year bond. It’s been getting hammered! Same price now as late 2008, even after how many tens of billions of fed purchases from then to now? Chris Martenson just put out a good piece on his Peak Prosperity site showing that it not just US bonds. Sovereigns around the world are being dumped.
      Commodities and other hard assets usually move opposite to bond prices over the long term, because dropping bonds signal inflation risk ahead, and no bond holder wants to be stuck holding a fiat asset yielding way less than the inflation rate. But that sure isn’t happening now. Seems like everything is being dumped for the “safety” of the dollar.

    • @Neo
      It’s a work “pension” but it’s not accessible until I hit 55. 
      Fugged Up Arrangement, I’m exploring every avenue to get it out “without dying or becoming disabled” LOL
      Watch out who you call a muppet… ;)

  9. Neo   Chill.  Lots of people are trapped in their retirement plans.
    Not everyone is all in and besides which, some 40lKs are captives of the company of that employee. It’s nearly impossible to exit unless the employee leaves.  I’ve had retirement plans with former employees that were so embedded in the system that the employer’s HR department was being paid to keep that retirement plan with the adimistrator.  That’s cheesy but it has happened.  One hand washes the other.  As for choices of investments—here you are  One from column A, one from column B and with two you get egg roll.
    In the past I exited plans, took the hit and moved on instead of being forced to stay in a plan.

    • I’m as “all in” as I can be. I will be more “all in” if I can extract this 401A LOL! 
      I have heavily invested in hard commodities since the Nov. 2008 crash…
      Thanx for having my Back, AG!   But you knew that.  Been trying to get 
      me an “Angle of Exit” for quite a while now  :D

    • I cannot even “take the hit” and get out, w/o the permission of a “council of douchebags” 
      and even if they give permission, I still have to pay the penalty (and tax, of course)

    • “I’ve had retirement plans with former employees that were so embedded in the system that the employer’s HR department was being paid to keep that retirement plan with the adimistrator.  That’s cheesy but it has happened.”
      That sounds more than “cheesy”, AG, it sounds illegal.  I’d like to see their explanation of how they are behaving in a responsible and fiduciary manner when they are taking money under the table to keep the employees penned up like this.  I would be REAL tempted to contact the Gov agencies that watch over the ERISA law… EEOC?  Someone.

  10. @Ed_B:
    How would one get EEOC involved? 
    I know a good bit about EEOC, but one needs an angle to even start up with EEOC. 
    It has to be perceived discrimination based on race, creed, color, or disability. If I could get a charge under EEOC I believe I could get my money OUT of the system or get a settlement. You go to arbitration and if they see a cheaper alternative to litigation, they will settle, if your case is Right, Wrong, or Indifferent… It’s all about the Money$

  11. The odd thing about being in a captive 401K is that a person could make money in this market with just the most basic of strategies.  It’s kind of like being kidnapped and made to party to money extortion.  Even if the heist of the 401k was contenanced by the company, the means to make money could present a clear path.  Unless the plan is one of those type that gives limited access and allowed changes once a quarter.  Talk about being behind the power curve.  Miss that quarterly change window and wham.

    • The ONE saving grace is that I can do a change order that is (presumably) executed the next business day. 
      But somehow I see that it will prolly be too slow, due to some internal workings of their system, and then 
      they will say “this is not a speculative account, try E-Trade” or some BS like that! lol
      Laughing so I don’t have to CRY   :…(

    • Imagine a change in the retirement plan laws that allowed an employee to transfer their 401k money into an IRA at any time.  Something like that WOULD slap some of these employers into line, no doubt. 

  12. Bottom line, don’t extend your investment more than you can afford. The way I see things, even if I have to take a 50% haircut on my silver investment, its still better than a 100% bail-in.
    But, if your like me, and have been buying moderately for an extended period of time, the peaks and troughs tend to iron themselves out, if say you got 100 oz at the peak, and you buy more when its about 2/3′s less than the peak , you just average it out, you will still be underwater, but as time progresses and you keep buying at lower prices, the costs even themselves out, then when it starts turning up, you break-even, then eventually your in profit, whatever the weather. This is not going to turn out well for anyone, and to be honest, I think Silver/Gold is a place I would want to be when things go wrong.
    Things are going to get worse, across the board, which include precious metals. But metals will fair better in my opinion than fiat, and stock & shares.
    If I had my way I would be investing in food, but the tricky thing about food, is that it wasn’t created in a supernova, and therefore hasn’t got the touch of immortality about it :)

  13. I have been reading this site for a few years, and was compelled to register and write my first comment. A local coin guy that has been in the business long enough to have bought his first house with 1964 Kennedy’s when silver had its run up in ’81, just called me Saturday to ask if I was interested in a few tubes of some AE’s @ $525 a roll. BTW, when this guy talks, I listen. (side note). The phone call made me think. He is sitting on an overstock because, in my opinion, almost no one has the fiat to buy much if any right now, and he himself overbought as a seller with the mindset we on this site have… is cheaper, so buy it up if you have the means to do so.
     The people that me and my wife work with, (different jobs), all sing the same tune…….home is under water, everyone knows many people with no jobs, paycheck to paycheck and so on…etc….This is one example of many across the country. I believe, that in a short time, the “yuppy” folk we all know who drink their coffee at Starbucks, have the big house and landscaped yard, use credit cards to pay for a $20 Pep Boys visit, and make fun of us when we talk about PM’s, will suddenly change their tune, and rush right on in to Ag and Au with a panic never before seen. I have old friends coming out of the woodwork asking me about draining their annuities, because they remember “something I had said to them before about silver.” This is happening more and more as friends talk to friends.
    Hey, I am just an observer sharing some information that we can all collectively use to try and see around that bend in the river. Enjoy the rest of the weekend, I am getting another $525 tube of AE’s at the flea market right now;)

  14. Thanks Doc, for warm welcome. I enjoy your site, and have benefited from reading the comments daily over the past few years.  

  15. Armando  I agree with your surmises.  The average Joe and Jane will soon notice their buying power eroded, savings depleted by ZIRP, and jobs depleted by Obamacare, businesses not hiring and often laying off employees, the stuck market going in reverse, and the general economic conditions turning down.  If you regard the frantic buying of gold and silver, copper and base metals, water and oil rights by countries  awash in US currency reserves, a commodity sure to drop in value, as signs of these nations like China, India, Russia, Indonesia and the like are acting like preppers on a global scale, then your surmises would lead you to stock up.  While you are at the flea market check and see if you find some items that might come in handy if we have a national emergency. Check my prepper guide in the ‘best of section on Silver Doctors’ to see if you lack some of the essentials outside the $26.50 a coin rolls.  BTW, I think you can get a better price  IMO. Unless you are buying from me at a gun show and then I will be charging $27 a coin or more LOL
    Be aware and vigilante.  These are uncertain times and precious metals, particularly at these relatively low prices, prices lower than the cost to mine them, will reflect their real value as a life line of insurance against hard times.  People will get the message but many will be  too late. They will rush to the doors, bidding up the price of precious metals just like they did in 1980 when the price for silver went from $16 to $49 an ounce in 37 days.  You might want to exit some of your holdings when the price skyrockets.   We will all be posting about when to do that and probably be wrong but what the heck, we’ll see a tremendous rise in prices for all the reasons we have talked about here for 2 years.

  16. Long Read to all your questions on Gold and Silver, Throw out the charts and all of the homogenizes horse dhit and the following read wil set you Free>
    The following timeline was written by a man named Andrew Hitchcock in
    2006. Many of you may have already read it, but those of you that
    haven’t it is well worth a read. It outlines the strategic moves of
    the ‘Money-Changers’ as Hitchcock refers them as, since 48 B.C. when
    Julius Caesar took it upon himself to take the Bankster’s power over
    the money away.
    We all know what happened to him, and every single other political
    figure who tried to get in their way.
    Some interesting silver references also.
    Set aside some time, though, it’s a long one.
    Enjoy. By the way, Cain works for the money changers…..
    Economists continually try and sell the public the idea that
    recessions or depressions are a natural part of what they call the
    “business cycle”.
    This timeline below will prove that is simply not the case. Recessions
    and depressions only occur because the Central Bankers manipulate the
    money supply, to ensure more and more is in their hands and less and
    less is in the hands of the people.
    Central Bankers developed out of money changers and it is with these
    people we pick the story up in 48 B.C. below.
    48 B.C.
    Julius Caesar took back from the money changers the power to coin
    money and then minted coins for the benefit of all. With this new,
    plentiful supply of money, he established many massive construction
    projects and built great public works. By making money plentiful,
    Caesar won the love of the common people.
    But the money changers hated him for it and this is why Caesar was
    assassinated. Immediately after his assassination came the demise of
    plentiful money in Rome, taxes increased, as did corruption.
    Eventually the Roman money supply was reduced by 90 per cent, which
    resulted in the common people losing their lands and homes.
    30 A.D.
    Jesus Christ in the last year of his life uses physical force to throw
    the money changers out of the temple. This was the only time during
    the the life of his ministry in which he used physical force against
    When Jews came to Jerusalem to pay their Temple tax, they could only
    pay it with a special coin, the half-shekel. This was a half-ounce of
    pure silver, about the size of a quarter. It was the only coin at that
    time which was pure silver and of assured weight, without the image of
    a pagan Emperor, and therefore to the Jews it was the only coin
    acceptable to God.
    Unfortunately these coins were not plentiful, the money changers had
    cornered the market on them, and so they raised the price of them to
    whatever the market could bear. They used their monopoly they had on
    these coins to make exorbitant profits, forcing the Jews to pay
    whatever these money changers demanded.
    Jesus threw the money changers out as their monopoly on these coins
    totally violated the sanctity of God’s house. These money changers
    called for his death days later.
    The money changers had control of Medieval England’s money supply and
    at this time were generally known as goldsmiths. Paper money started
    out and this was simply a receipt you would get after depositing gold
    with a goldsmith, in their safe rooms or vaults. This paper started
    being traded as it was far more convenient than carrying round a lot
    of heavy gold and silver coins.
    Over time, to simplify the process, the receipts were made to the
    bearer, rather than to the individual depositor, making it readily
    transferable without the need for a signature. This also, broke the
    tie to any identifiable deposit of gold.
    Eventually the goldsmiths recognized that only a fraction of
    depositors ever came in and demanded their gold at any one time, so
    they found out how they could cheat on the system. They started to
    issue more receipts than they had gold to back those receipts and no
    one would be any the wiser. They would loan out these receipts which
    were not backed by the gold they had in their depositories and collect
    interest on them.
    This was the birth of the system we know today as Fractional Reserve
    Banking, and like this system of today this meant the goldsmiths were
    able to make astronomical amounts of money by loaning out, what was
    essentially fraudulent receipts, as they were for gold the goldsmiths
    didn’t even possess. As they gradually got more confident they would
    loan out up to 10 times the amount they had in their deposits.
    To simplify how they made money on this, let’s give an example in
    which a goldsmith charges the same rate of interest to creditors and
    debtors. In this example a goldsmith would pay interest of 6% on gold
    you had deposited with them, and then charge 6% interest on money, I
    mean fraudulent receipts, you borrowed from them. As they would lend
    out ten times what you had deposited with them, whilst they’re paying
    you 6% interest, they are making 60% interest. This is on your gold.
    The goldsmiths also discovered that their control of this fraudulent
    money supply gave them control over the economy and the assets of the
    people. They exacted their control by rowing the economy between easy
    money and tight money.
    The way they did this was to make money easy to borrow and therefore
    increase the amount of money in circulation, then suddenly tighten the
    money supply, taking it out of circulation by making loans more
    difficult to get or stopping offering them altogether.
    Why did they do this? Simple, because the result would be a certain
    percentage of the people being unable to repay their previous loans,
    and not having the facility to take out new ones, so they would go
    bankrupt and be forced to sell their assets to the goldsmiths for
    literally pennies on the dollar.
    This is exactly what happens in the world economy of today, but is
    referred to with words like, “the business cycle,” “boom and bust,”
    “recession,” and “depression,” in order to confuse the population of
    the money changers scam.
    King Henry I succeeds King William II to the throne of England. During
    his reign he decided to take the power the money changers had over the
    people, and he did this by creating a completely new form of money
    that took the form of a stick! This stick was called, a “talley
    stick,” and ended up being the longest lasting form of currency,
    lasting 726 years until 1826 (even though other currencies came and
    went in that same period and ran alongside the talley sticks).
    The talley stick was a stick of polished wood into which notches were
    cut along one side, to indicate the denomination of money the stick
    represented. The stick was then split lengthwise through the notches,
    so that both pieces had a record of the notches. The King kept one
    half to protect against counterfeiting and the other half was spent
    into the economy and circulated as money.
    It was also one of the most successful money systems in history, as
    the King demanded that all the King’s taxes had to be paid in, “talley
    sticks,” so this increased their circulation and acceptance as a
    legitimate form of money. This system would work well in keeping the
    power away from the money changers in England.
    St. Thomas Aquinas is born, the leading theologian of the Catholic
    Church who argued that the charging of interest is wrong because it
    applies to “double charging,” charging for both the money and the use
    of the money.
    This concept followed the teachings of Aristotle that taught the
    purpose of money was to serve the members of society and to facilitate
    the exchange of goods needed to lead a virtuous life. Interest was
    contrary to reason and justice because it put an unnecessary burden on
    the use of money.
    Thus, Church law in Middle Ages Europe forbade the charging of
    interest on loans and even made it a crime called, “usury.”
    King Henry VIII succeeds King Henry VII to the throne in England.
    During his reign he relaxed the laws regarding usury, and and the
    money changers did not waste any time in re-asserting themselves over
    the population. They quickly made their gold and silver coin system
    plentiful again. It is interesting to note that under King Henry VIII
    the Church of England separated from Roman Catholicism, whose Church
    law prevented the charging of interest on money.
    Queen Mary I succeeds Lady Jane Grey’s nine day reign to the throne in
    England. During her reign, Queen Mary I, a staunch Catholic, tightened
    the usury laws again. The money changers were not amused and in
    revenge they tightened the money supply by hoarding gold and silver
    coins and causing the economy to plummet.
    Queen Elizabeth I succeeds Queen Mary I, her half sister, to the
    throne in England. During her reign, Queen Elizabeth I decided that in
    order to wrest control of the money supply she would have to issue her
    own gold and silver coins. She did this through the public treasury
    and successfully took control of the money supply from the money
    The money changers in the Netherlands establish the the first central
    bank in history, in Amsterdam.
    Oliver Cromwell is financed by the money changers for the purposes of
    fomenting a revolution in England, and allowing them to take control
    of the money system again. After much bloodshed, Cromwell finally
    purges the parliament, overthrows King Charles I and puts him to death
    in 1649.
    The money changers immediately consolidate their power and for the
    next few decades plunge Great Britain into a costly series of wars.
    They also take over a square mile of property in the center of London
    which becomes known as the City of London.
    The money changers in England following a series of squabbles with the
    Stuart Kings, Charles II (1660 – 1685) and James II (1685 – 1688),
    conspire with their far more successful money changing counterparts in
    the Netherlands, who had already set up a central bank there.
    They decide to finance an invasion by William of Orange of Netherlands
    who they sound out and establish will be more favorable to them. The
    invasion is successful and William of Orange ascends to the throne in
    England as King William III in 1689.
    Following a costly series of wars over the last 50 years, English
    Government officials go, cap in hand, to the money changers for loans
    necessary to pursue their political purposes. The money changers agree
    to solve this problem in exchange for a government sanctioned
    privately owned bank which could issue money created out of nothing.
    This was deceptively named the, “Bank of England,” for the sole
    purpose of duping the general public into believing it was part of the
    government, which it was not.
    Like any other private corporation the Bank of England sold shares to
    get started. The private investors, whose names were never revealed,
    were supposed to put up £1,250,000 in gold coins to buy their shares
    in the bank, but only £750,000 was ever received. Despite that the
    bank was duly chartered and began loaning out several times the money
    it supposedly had in reserves, all at interest.
    Although the Bank of England’s private investors were never revealed,
    one of the Directors, William Paterson, stated,
    “The Bank hath benefit of interest on all monies which it creates out
    of nothing.”
    Furthermore the Bank of England would loan government officials as
    much of the new currency as they wanted, as long as they secured the
    debt by direct taxation of the British people. The Bank of England
    amounted to nothing less than the legal counterfeiting of a national
    currency for private gain, and thus any country that would fall under
    the control of a private bank would amount to nothing more than a
    Soon after the Bank of England was formed it attacked the talley stick
    system, as it was money outside of the power of the money changers,
    just as King Henry I had intended it to be.
    Following four years of the Bank of England, their plan to control the
    money supply had come on in leaps and bounds. They had flooded the
    country with so much money that the Government debt to the Bank had
    grown from the initial £1,250,000, to £16,000,000, in only four years.
    That’s an increase of 1,280%.
    Why do they do it? Simple, if the money in circulation in a country is
    £5,000,000, and a central bank is set up and prints another
    £15,000,000, stage one of the plan, sends it out into the economy
    through loans etc, than this will reduce the value of the initial
    £5,000,000 in circulation before the bank was formed. This is because
    the initial £5,000,000 is now only 25% of the economy. It will also
    give the bank control of 75% of the money in circulation with the
    £15,000,000 they sent out into the economy.
    This also causes inflation which is the reduction in worth of money
    borne by the common person, due to the economy being flooded with too
    much money, an economy which the Central Bank are responsible for. As
    the common person’s money is worth less, he has to go to the bank to
    get a loan to help run his business etc, and when the Central Bank are
    satisfied there are enough people with debt out there, the bank will
    tighten the supply of money by not offering loans. This is stage two
    of the plan.
    Stage three, is sitting back and waiting for the debtors to them to go
    bankrupt, allowing the bank to then seize from them real wealth,
    businesses and property etc, for pennies on the dollar. Inflation
    never effects a central bank in fact they are the only group who can
    benefit from it, as if they are ever short of money they can simply
    print more.
    Benjamin Franklin travels to England and would spend the next 18 years
    of his life there until just before the start of the American
    Mayer Amschel Bauer changes him name to Mayer Amschel Rothschild and
    sets up the, House Of Rothschild, and soon learns that if he loans out
    money to Governments and Royalty then this is far more profitable than
    loaning to individuals. This is because the loans made are bigger and
    backed by their nations’ taxes. He trains his five sons in the art of
    money creation.
    Benjamin Franklin is asked by officials of the Bank of England to
    explain the prosperity of the colonies in America. He replies,
    “That is simple. In the Colonies we issue our own money. It is called
    Colonial Scrip. We issue it in proper proportion to the demands of
    trade and industry to make the products pass easily from the producers
    to the consumers. In this manner creating for ourselves our own paper
    money, we control its purchasing power, and we have no interest to pay
    no one.”
    As a result of Franklin’s statement, the British Parliament hurriedly
    passed the Currency Act of 1764. This prohibited colonial officials
    from issuing their own money and ordered them to pay all future taxes
    in gold or silver coins. Referring to after this act was passed,
    Franklin would state the following in his autobiography,
    “In one year, the conditions were so reversed that the era of
    prosperity ended, and a depression set in, to such an extent that the
    streets of the colonies were filled with the unemployed…The colonies
    would gladly have borne the little tax on tea and other matters had it
    not been that England took away from the colonies their money which
    created unemployment and dissatisfaction.
    The viability of the colonists to get power to issue their own money
    permanently out of the hands of King George III and the international
    bankers was the prime reason for the revolutionary war.”
    Control of America’s money system will change hands 8 times since 1764.
    April 19th, start of the revolutionary war in Lexington,
    Massachusetts. By this time the colonies had been drained of silver
    and gold coins as a result of British taxation. As a result of this,
    the continental government had no choice but to print money to finance
    the war.
    At the start of the revolution the American money supply stood at
    $12,000,000. By the end of the war it was nearly $500,000,000 and as a
    result the currency was virtually worthless. An example of this is
    that a pair of shoes now sold for $5,000 dollars. This also shows the
    danger of printing too much money. The reason Colonial Scrip had
    worked was because just enough was used to facilitate trade.
    Towards the end of the American Revolution the Continental Congress
    were desperate for money, so they allowed Robert Morris, their
    Financial Superintendent, to open a privately owned central bank, in
    the hope this would sort out the money problem.
    Morris was a wealthy man who had grown wealthier during the revolution
    by trading in war materials. This first central bank in America was
    called the Bank of North America, which was set up with a four year
    charter, and was closely modeled after the Bank of England. It was
    allowed to practice the fraudulent system of fractional reserve
    banking, so it could create money it didn’t have, then charge interest
    on it.
    The bank’s charter called for private investors to put up $400,000 of
    initial capital, which Morris found himself unable to raise.
    Nevertheless he unashamedly used his political influence to have gold
    deposited in the bank, which had been loaned to America by France.
    Morris then loaned the money he needed to buy this bank from this
    deposit of gold that belonged to the government, or rather the
    American people.
    This Bank of North America, again deceptively named so the common
    people would believe it was under the control of the government, was
    given a monopoly over the national currency.
    Despite the promises of Robert Morris that his privately owned Bank of
    North America would solve the problem with the money supply, of course
    the economy continued to plummet, forcing the Continental Congress not
    to renew the bank’s charter. The leader of the effort to kill this
    bank was William Findlay of Pennsylvania, who stated,
    “This institution, having no principle but that of avarice, will never
    be varied in its objective…to engross all the wealth, power and
    influence of the state.”
    Mayer Amschel Rothschild moves his family home to a five storey home
    in Frankfurt, Germany, which he shares with the Schiff family, (a
    descendant of both Rothschild and Schiff, Jacob Schiff, who would be
    born in this house, would, some 128 years later, be instrumental in
    the setting up of the Federal Reserve).
    Colonial leaders assemble in Philadelphia to replace the Articles of
    Confederation with the Constitution. Governor Morris headed the final
    draft of the Constitution and he knew the motivation of the bankers
    well as he had once worked for them. Governor Morris along with his
    former boss Robert Morris, and Alexander Hamilton had presented the
    original plan for the Bank of North America to the Continental
    Congress, in the final year of the Revolution.
    Fortunately Governor Morris by this time had discovered his
    conscience, defected from Robert Morris, and in a letter to James
    Madison dated July 2nd of this year he stated,
    “The rich will strive to establish their dominion and enslave the
    rest. They always did. They always will…They will have the same
    effect here as elsewhere, if we do not, by the power of government,
    keep them in their proper spheres.”
    James Madison was opposed to a privately owned central bank after
    seeing the exploitation of the people by the Bank of England. Thomas
    Jefferson was also against it, and Jefferson later made the following
    “If the American people ever allow private banks to control the issue
    of their currency, first by inflation, then by deflation, the banks
    and the corporations which grow up around them will deprive the people
    of all property until their children wake up homeless on the continent
    their fathers conquered.”
    Sadly the words of wisdom of Governor Morris and Thomas Jefferson fell
    on deaf ears. Alexander Hamilton, Robert Morris and Thomas Wyling,
    convinced the the bulk of the delegates to this Constitutional
    convention, not to give Congress the power to issue paper money.
    They were aware that most of these delegates were still reeling from
    the wild inflation of the paper money during the revolution. These
    delegates also had short memories and didn’t remember how well
    Colonial Scrip had worked before the war, or Benjamin Franklin’s words
    of wisdom in 1764.
    As a result the Constitution was silent on the issue of paper money by
    the Government for the citizens, leaving a wide open door for money
    changers in the future.
    Less than 3 years after the Constitution had been signed, the newly
    appointed First Secretary of the Treasury, Alexander Hamilton,
    proposed a bill to the Congress calling for a new privately owned
    central bank. Interestingly, Alexander Hamilton’s first job after
    graduating from law school in 1782 was as an aide to Robert Morris, a
    man who he had written to in 1781 stating, “a national debt if it is
    not excessive will be to us a national blessing.”
    The three main players behind the Bank Of North America were: Robert
    Morris; Alexander Hamilton; and the Bank’s President, Thomas Willing.
    These men did not give up and Alexander Hamilton, now Secretary of the
    Treasury, a man who described Robert Morris as his, “mentor,” managed
    to get a new privately owned central bank through the new Congress.
    This new bank was called the, “First Bank of the United States,” and
    was exactly the same as the Bank of North America. Robert Morris
    controlled it, Thomas Willing was the Bank’s President, only the name
    had changed.
    This bank came into being after a year of intense debate and was given
    a 20 year charter. It was given a monopoly on printing United States
    currency even though 80% of it’s stock was held by private investors.
    The other 20% was purchased by the United States government, but this
    was not to give it a piece if the action, but to provide the capital
    for the private investors to purchase the other 80%.
    As with the Bank of England and the old Bank of North America, these
    private investors never paid the full agreed amount for their shares.
    What happened was through the fraudulent system of fractional reserve
    banking, the government’s 20% stake which was $2,000,000 in cash, was
    used to make loans to its private investors to purchase the other 80%
    stake, £8,000,000, for this risk free investment.
    Again like the Bank of England and the old Bank of North America, the
    name, “First Bank of the United States,” was deliberately chosen to
    hide from the common people the fact that it was privately owned. The
    names of the investors in this bank were never revealed, although it
    is now widely believed that the Rothschilds were behind it.
    Interestingly in 1790 when Alexander Hamilton proposed this bank in
    Congress, Mayer Amschel Rothschild made the following statement from
    his bank in Frankfurt, Germany, “Let me issue and control a nation’s
    money and I care not who writes the laws.”
    The First Bank of the United States has been controlling the American
    money supply for 5 years. During this time the American Government has
    borrowed $8,200,000 from this Central Bank, and prices in the country
    have increased by 72%. In relation to this, Thomas Jefferson, then
    Secretary of State stated,
    “I wish it were possible to obtain a single amendment to our
    constitution taking from the Federal Government their power of
    Mayer Amschel Rothschild sends his son, Nathan, at the age of 21, to
    England with a sum of money equivalent to £20,000, to set up a money
    changers there.
    In France, the Bank of France was set up. However Napoleon decided
    France had to break free of the debt and he therefore never trusted
    this bank. He declared that when a government is dependent on bankers
    for money, it is the bankers and not the government leaders that are
    in control. He stated,
    “The hand that gives is among the hand that takes. Money has no
    motherland, financiers are without patriotism and without decency,
    their sole object is gain.”
    Now President, Thomas Jefferson, President Jefferson struck a deal
    with Napoleon in France. The United States would give Napoleon
    $3,000,000 of gold in exchange for a huge chunk of territory west of
    the Mississippi River. This was called the Louisiana purchase.
    Napoleon used this gold to put together an army. He then used this
    army to set off across Europe where he began to conquer everything in
    his path. The Bank of England quickly rose to oppose Napoleon and
    financed every nation in his path, as usual profiteering from war.
    Prussia, Austria, and then finally Russia all went heavily into debt
    in a futile attempt to stop Napoleon.
    30 year old Nathan Rothschild, head of the English branch of the
    family in London, personally takes charge of a plan to smuggle a much
    needed shipment of gold through France to Spain to finance an attack
    by the Duke Of Wellington on Napoleon, from there.
    A bill was put before Congress to renew the charter of the First Bank
    of the United States. The legislatures of both Pennsylvania and
    Virginia pass resolutions asking Congress to kill the bank. The
    national press openly attack the bank calling it: a great swindle; a
    vulture; a viper; and a cobra.
    Nathan Rothschild gets in on the act and makes the following revealing
    statement as to who was really behind the First Bank of the United
    “Either the application for renewal of the charter is granted, or the
    United States will find itself involved in a most disastrous war.”
    When the smoke had cleared the renewal bill was cleared by a single
    vote in the house and was deadlocked in the Senate. At this point
    America’s fourth President, President James Madison was in the White
    House. He was a staunch opponent of the bank and he sent his
    Vice-President, George Clinton, to break a tie in the Senate which
    killed the bank.
    As promised by Nathan Rothschild, because the charter for the First
    Bank of the United States is not renewed, thousands have to die and
    the British attack America. However, as the British are still busy
    fighting Napoleon, they are unable to mount much of an assault and the
    war ends in 1814 with America undefeated.
    Wellington’s attacks from the South and other defeats eventually
    forced Napoleon to abdicate and Louis XVIII is crowned King. Napoleon
    is exiled to the tiny island of Elba, off the coast of Italy.
    Napoleon escapes his exile and returns to Paris. French troops were
    sent to capture him, but he uses his charisma to convince these
    soldiers to rally round him, and they subsequently hail him as their
    emperor once again. In March, Napoleon assembles an army which
    England’s Duke of Wellington defeated less than 90 days later at
    Even though the outcome is predetermined, these bankers don’t like to
    take any sort of risk, they’re too used to a monopoly. Therefore
    Nathan Rothschild sent a trusted courier named Rothworth to Waterloo
    where he stayed on the edge of the battlefield. Once the battle was
    decided, Rothworth took off for the Channel, and delivered the news of
    Wellington’s victory to Nathan Rothschild a full 24 hours before
    Wellington’s own courier.
    Nathan Rothschild hurried to the London Stock market and stood in his
    usual position. All eyes were on him as Rothschild had a legendary
    communications network. Rothschild stood there looking forlorn and
    suddenly started selling. The other traders believed that this meant
    he had heard that Napoleon had won so they all started selling
    The market subsequently plummeted, soon everyone was selling their
    consuls (British Government Bonds), but then Rothschild secretly
    started buying them all up through his agents on the floor, for a
    fraction of what they were worth only hours before. A lot of these
    consuls were able to be converted to Bank of England stock, which is
    how Rothschild took over the control of the Bank of England and
    therefore the British money supply.
    Interestingly, 100 years later, the New York Times ran a story stating
    that Nathan Rothschild’s grandson had attempted to secure a court
    order to suppress a book with this, what we would call today, “insider
    trading,” story in it. The Rothschild family claimed the story was
    untrue and libelous, but the court denied the Rothschilds request and
    ordered the family to pay all court costs.
    Nathan Rothschild openly brags that in his 17 years in England he had
    increased his initial £20,000 stake given to him by his father, 2500
    times to £50,000,000.
    Some people ask, why do bankers want war? Simple, bankers finance both
    sides in a war. They do this because war is the biggest debt generator
    of them all. A nation will borrow any amount for victory, even though
    the banks have already predetermined the outcome. The ultimate loser
    is loaned just enough money to hold out a vain hope of victory and the
    ultimate winner is given enough to ensure that he does win.
    How do the banks ensure they will get all their money back? Easy, such
    loans are given on the guarantee that the victor will honor the debts
    of the vanquished. Never mind the thousands of troops that give their
    lives on the pretext it is for the honor of their respective nations,
    when it is actually for the profits of bankers.
    In fact, during the period between the founding of the Bank of England
    in 1694 and Napoleon’s defeat at Waterloo this year, England had been
    at war for 56 years, with much of the remaining time spent preparing
    for war. If it’s a good business for bankers’ profits, then why change
    The American Congress passes a bill permitting yet another privately
    owned central bank. This bank was called the, “Second Bank of the
    United States,” and it’s charter was a carbon copy of that of its
    predecessor, the First Bank of the United States. The United States
    government would once again supposedly own 20% of the shares of the
    Their share was again paid up front into the bank and thanks to
    fraudulent fractional reserve lending, this was transformed into loans
    to the private investors who once again purchased the remaining 80% of
    the shares. Just as before the names of these investors was kept a
    The talley stick is taken out of circulation in England.
    After 12 years during which the Second Bank of the United State
    ruthlessly manipulated the American economy to the detriment of the
    people but to the benefit of their own money grabbing ends, the
    American people had unsurprisingly had enough. Opponents of this bank
    nominated Senator Andrew Jackson of Tennessee to run for President.
    To the dismay of the money changers, Jackson won the Presidency and
    made it quite clear he intended to kill this bank at his first
    opportunity. He started out during his first term in office, to root
    out the banks many minions from government service. To illustrate how
    deep this cancer was rooted in government, he fired 2,000 of the
    11,000 employees of the Federal Government.
    The Second Bank of the United States, ask Congress to pass a renewal
    of the bank’s charter, four years early. Congress complied and sent
    the bill to President Jackson for signing. President Jackson vetoed
    this bill and in his veto message he stated the following,
    “It is not our own citizens only who are to receive the bounty of our
    Government. More than eight millions of the stock of the Bank are held
    by foreigners…Is there no danger to out liberty and independence in
    a bank that in its nature has so little to bind it to our country?
    Controlling our currency, receiving our public moneys, and holding
    thousands of our citizens in dependence …would be more formidable
    and dangerous than a military power of the enemy. If government would
    confine itself to equal protection, and, as Heaven does its rains,
    shower the favor alike on the high and the low, the rich and the poor,
    it would be an unqualified blessing.
    In the act before me there seems to be wide and unnecessary departure
    from these just principles.”
    In July, Congress was unable to override President Jackson’s veto.
    President Jackson then stood for re-election and for the first time in
    American history he took his argument directly to the people by taking
    his re-election campaign on the road. His campaign slogan was,
    “Jackson And No Bank
    Milton Friedman would also state,
    “I know of no severe depression, in any country or any time that was
    not accompanied by a sharp decline in the stock of money, and equally
    of no sharp decline in the stock of money that was not accompanied by
    a severe depression.”
    Sir Josiah Stamp, director of the Bank of England during the years
    1928-1941, made the following statement with regard to banking,
    “The modern banking system manufactures money out of nothing. The
    process is perhaps the most astounding piece of sleight of hand that
    was ever invented. Banking was conceived in iniquity and born in sin.
    Bankers own the Earth. Take it away from them, but leave them the
    power to create money, and with the flick of the pen they will create
    enough money to buy it back again…
    Take this great power away from them and all great fortunes like mine
    will disappear, and they ought to disappear, for then this would be a
    better and happier world to live in. But if you want to continue to be
    slaves of the banks and pay the cost of your own slavery, then let
    bankers continue to create money and control credit.”
    The United States income is running at 183 billion dollars, yet 103
    billion dollars is being spent on World War II. This was thirty times
    the spending rate during World War I. Actually, it was the American
    taxpayer that picked up 55% of the total allied cost of the war.
    In Bretton Woods, New Hampshire, the International Monetary Fund
    (IMF), and the World Bank (initially called the International Bank for
    Reconstruction and Development or IBRD – the name, “World Bank,” was
    not actually adopted until 1975), were approved with full United
    States participation.
    The principal architects of the Bretton Woods system, and hence the
    IMF, were Harry Dexter White and John Maynard Keynes. Interestingly
    Harry Dexter White who died in 1946, was identified as a Soviet spy
    whose code name was, “Jurist,” on October 16, 1950, in an FBI memo.
    Also, John Maynard Keynes was a British citizen.
    What these two bodies essentially did, was repeat on a world scale
    what the National Banking Act of 1864, and the Federal Reserve Act of
    1913 had established in the United States. They created a banking
    cartel comprising the world’s privately owned central banks, which
    gradually assumed the power to dictate credit policies to the banks of
    all nations.
    In the same way the Federal Reserve Act authorized the creation of a
    new national fiat currency called, Federal Reserve Notes, the IMF has
    been given the authority to issue a world fiat money called, “Special
    Drawing Rights,” or SDR’s. Member nations were subsequently pressured
    into making their currencies fully exchangeable for SDR’s.
    The IMF is controlled by its board of governors, which are either the
    heads of different central banks, or the heads of the various national
    treasury departments who are dominated by their central banks. Also,
    the voting power in the IMF gives the United States and the United
    Kingdom (the Federal Reserve and the Bank of England), effective
    control of it.
    The second, “League Of Nations,” now renamed the, “United Nations,”
    was approved. The bankers, World War II, had been a success this time
    as a result of the physical, emotional, and mental exhaustion the
    world had felt after yet another World War. This blueprint for world
    government would soon have its own international court system as well.
    The Bank of England was nationalized, which might seem at first sight
    to be a far reaching measure, but actually made little difference in
    practice. Yes, the state did acquire all the shares in the Bank of
    England, they now belong to the Treasury and are held in trust by the
    Treasury Solicitor.
    However, the government had no money to pay for the shares, so instead
    of receiving money for their shares, the shareholders were issued with
    government stocks. Although the state now received the operating
    profits of the bank, this was offset by the fact that the government
    now had to pay interest on the new stocks it had issued to pay for the
    So, although the Bank of England is now state-owned, the fact is that
    the British money supply is once again almost entirely in private
    hands, with 97% of it being in the form of interest bearing loans of
    one sort or another, created by private commercial banks.
    As a result of this, the bank is largely controlled and run by those
    from the world of commercial banking and conventional economics. The
    members of the Court of Directors, who set policy and oversee its
    functions, are drawn almost entirely from the world of banks,
    insurance, economists and big business.
    Although the Bank of England is called a central bank it is now
    essentially a regulatory body that supports and oversees the existing
    system. It is sometimes referred to as “the lender of last resort,” in
    so far as one of its functions as the bankers’ bank is to support any
    bank or financial institution that gets into difficulties and suffers
    a run on its liquid assets.
    Interestingly, in these circumstances, it is not obliged to disclose
    details of any such measures, the reason being so as to avoid a crisis
    in confidence.
    Every nation involved in World War II greatly multiplied their debt.
    Between 1940 and 1950, United States Federal Debt went from 43 billion
    dollars to 257 billion dollars, a 598% increase. During that same
    period Japanese debt increased by 1,348%, French debt increased by
    583%, and Canadian debt increased by 417%.
    James Paul Warburg appearing before the Senate on 7th February states,
    “We shall have World Government, whether or not we like it. The only
    question is whether World Government will be achieved by conquest or
    This is when the central bankers got to work on their plan for global
    government which started with a three step plan to centralize the
    economic systems of the entire world. These steps were:
    Central Bank domination of national economies worldwide.
    Centralized regional economies through super states such as the
    European Union, and regional trade unions such as NAFTA.
    Centralize the World Economy through a World Central Bank, a world
    money, and ending national independence through the abolition of all
    tariffs by treaties like GATT.
    President Eisenhower orders an audit of Fort Knox. Fort Knox is found
    to contain over 700 million ounces of gold, 70% of all the gold in the
    world. Although Federal Law requires an annual physical audit of Fort
    Knox’s gold, it is under Eisenhower’s presidency that the last audit
    is carried out, for reasons that will soon become clear.
    President Kennedy issues dollar bills carrying a red seal, and called
    United States Note. A lot of people believe he was already printing
    his own debt free money and that is why he was killed, in much the
    same way as President Lincoln. However, these United States Notes
    carrying the red seal were merely a reissue of the Greenbacks
    introduced by President Lincoln.
    What could have been motive though, is that on June 4, President
    Kennedy signed Executive Order No. 11110 that returned to the United
    States government the power to issue currency, without going through
    the Federal Reserve. This order gave the Treasury the power to issue
    silver certificates against any silver bullion, silver, or standard
    silver dollars in the Treasury. This meant that for every ounce of
    silver in the United States Treasury’s vault, the government could
    introduce new debt free money into circulation.
    Congressman Wright Patman, then the Chairman Of The House Banking And
    Currency Committee, stated in Congress,
    “In the United States today, we have in effect two governments…We
    have the duly constituted government…Then we have an independent,
    uncontrolled and uncoordinated government in the Federal Reserve
    System, operating the money powers which are reserved to Congress by
    the Constitution.”
    Congress approves laws authorizing the Federal Reserve to accept the
    IMF’s, “SDR’s,” as reserves in the United States and to issue Federal
    Reserve Notes in exchange for SDR’s.
    All the pure gold had been secretly moved from Fort Knox, sold to
    international money changers for the $35 per ounce price, and is
    believed to now be kept in London. This is also when President Nixon
    repeals Roosevelt’s Gold Reserve Act of 1934, allowing Americans to
    once again buy gold. As a result of this gold prices began to soar. In
    fact, 9 years later, in 1980 gold sold for $880 per ounce, a
    staggering 25 times what the gold in Fort Knox was sold to the
    international bankers for.
    A New York periodical publishes an article claiming that the
    Rockefeller family were manipulating the Federal Reserve for the
    purpose of selling off Fort Knox gold at bargain basement prices to
    anonymous European speculators. 3 days after the publication of this
    story, its anonymous source, long time secretary to Nelson
    Rockefeller, Louise Auchincloss Boyer, mysteriously fell to her death
    from the window of her ten storey apartment block in New York.
    Edith Roosevelt, the grand-daughter of President Theodore Roosevelt
    questioned the actions of the government in a March 1975 edition of
    the New Hampshire Sunday News, in which she stated,
    “Allegations of missing gold from our Fort Knox vaults are being
    widely discussed in European financial circles. But what is puzzling
    is that the Administration is not hastening to demonstrate
    conclusively that there is no cause for concern over our gold
    treasure, if indeed it is in a position to do so.”
    The United States government still did not undertake an audit of the
    gold in Fort Knox to quell this speculation.
    When President Ronald Reagan took office, his conservative friends
    suggested to him that he return to a gold standard, as a means to
    curbing government spending. President Reagan was on board with this
    idea and so he appointed a group of men called the, “Gold Commission,”
    to undertake a feasibility study and report their findings back to
    President Reagan’s, “Gold Commission,” reports back to Congress and
    makes the following shocking statement concerning gold,
    “The U. S. Treasury owned no gold at all. All the gold that was left
    in Fort Knox was now owned by the Federal Reserve, a group of private
    bankers, as collateral against the National Debt.”
    In order that Ecuador’s government be allowed a loan of 1.5 billion
    dollars from the IMF, they were forced to take over the unpaid private
    debts Ecuador’s elite owed to private banks. Furthermore in order to
    ensure Ecuador could pay back this loan, the IMF dictated price hikes
    in electricity and other utilities. When that didn’t give the IMF
    enough cash they ordered Ecuador to sack 120,000 workers.
    Ecuador were required to do a variety of things under a timetable
    imposed by the IMF. These included: raising the price of cooking gas
    by 80% by November 1 2000; transferring the ownership of its biggest
    water system to foreign operators; granting British Petroleum the
    rights to build and own an oil pipeline over the Andes; and
    eliminating the jobs of more workers and reducing the wages of those
    remaining by 50%.
    In order to illustrate that the great majority of money is not even
    printed these days, please see the following speech by the late Lord
    Beswick which appeared in HANSARD, 27th November 1985, vol. 468,
    columns 935-939, under the title, “Money Supply and the Private
    Banking System,” which states,
    “Lord Beswick rose to call attention to the statement made by the
    Chancellor of the Duchy of Lancaster on 23rd July 1985 that the 96.9
    per cent increase in money supply over a five-year period has been
    created by the private banking system and without Government
    The noble Lord said, ‘My Lords, on 10th June this year I asked Her
    Majesty’s Government by what amount the money supply had increased in
    the five-year period to mid-April 1985. Interestingly, they gave me
    the answer in percentages and not in pounds. Having given him prior
    notice, perhaps the Minister would be good enough later to give me the
    answer in money terms.
    The Government reply on 10th June was that the increase had been by
    101.9 per cent, and that of that very large amount only 5 per cent was
    accounted for by the state minting of more coins and the printing of
    more notes. That 96.9 per cent increase represented not only an
    enormous sum of money but also a crucially important factor in our
    I wanted to know by whom it had been created, and on 23rd July I again
    asked Her Majesty’s Government to what extent this increase had
    Government approval. I was told by the Chancellor of the Duchy,
    speaking for the Government, ‘The 96.9 percent represented new bank
    deposits created in the normal course of banking business and no
    Government authority is necessary for this.’
    Had he said that some counterfeiter of coins or forger of notes had
    been at work there would of course have been an immediate and
    indignant outcry, yet here we have a government statement that private
    institutions have created this enormous amount of extra purchasing
    power and we are expected to accept that it is normal practice and
    that the government authority does not come into it.
    When I asked whether we ought not to consider more deeply who was
    benefiting from this money-creating power, the Minister said that the
    implications, though interesting, were maybe too far reaching for
    Question Time, and so I raise the matter again in debate and hope to
    get more enlightenment.
    The issues are important, they are certainly under-discussed, perhaps
    not adequately understood, and I hope that I am not being unduly
    unfair if I say that those who understand the mechanisms often do very
    well out of them. I make no party point; it is all much bigger and
    wider than that.”
    Notice how the Chancellor of the Duchy gave the game away when he said
    that no government authority was needed for this present system of
    credit creating.
    Edmond de Rothschild creates the World Conservation Bank which is
    designed to transfer debts from third world countries to this bank and
    in return those countries would give land to this bank. This is
    designed so the Rothschilds can gain control of the third world which
    represents 30% of the land surface of the Earth.
    The three arms of the World Central Bank, the World Bank, the BIS and
    the IMF, now generally referred to as the World Central Bank, through
    their BIS arm, require the world’s bankers to raise their capital and
    reserves to 8% of their liabilities by 1992. This increased capital
    requirement put an upper limit on fractional reserve lending.
    To raise the money, the world’s bankers had to sell stocks which
    depressed their individual stock markets and began depressions in
    those countries. For example in Japan, one of the countries with the
    lowest capital in reserve, the value of its stock market crashed by
    50%, and its commercial real estate crashed by 60%, within two years.
    The idea is for the IMF to create more and more SDR’s backed by
    nothing, in order for struggling nations to borrow them. These nations
    will then gradually come under the control of the IMF as they struggle
    to pay the interest, and have to borrow more and more. The IMF will
    then decide which nations can borrow more and which will starve. They
    can also use this as leverage to take state owned assets like
    utilities as payment against the debt until they eventually own the
    nation states.
    At the Bilderberg Conference on June 6 to 9, in Baden-Baden, Germany,
    David Rockefeller made the following statement,
    “We are grateful to the Washington Post, the New York Times, Time
    Magazine, and other great publications whose directors have attended
    our meetings and respected their promises of discretion for almost 40
    years. It would have been impossible for us to develop our plan for
    the world, if we had been subjected to the lights of publicity during
    those years.
    But the world is now more sophisticated and prepared to march towards
    a world government. The super-national sovereignty of an intellectual
    elite and world bankers is surely preferable to the national
    auto-determination practiced in past centuries.”
    Note: Click here for a Microsoft Excel spreadsheet with a list of
    people at the Bilderberg Conferences.
    The third world debtor nations who had borrowed from the World Bank,
    pay 198 million dollars more to the central banks of the developed
    nations for World Bank funded purposes than they receive from the
    World Bank. This only goes to increase their permanent debt in
    exchange for temporary relief from poverty which is caused by the
    payments on prior loans, the repayments of which already exceed the
    amount of the new loans.
    This year Africa’s external debt had reached 290 billion dollars,
    which is two and a half times greater than its level in 1980, which
    has resulted in deterioration of schools, deterioration of housing,
    sky-rocketing infant mortality rates, a drastic downturn in the
    general health of the people, and mass unemployment.
    The Washington Times reports that Russian President, Boris Yeltsin,
    was upset that most of the incoming foreign aid was being siphoned
    off, and he stated,
    “Straight back into the coffers of Western Banks in debt service.”
    This year American taxpayers pay the Federal Reserve 286 billion
    dollars in interest on debt the Federal Reserve purchased by printing
    money virtually cost free.
    The Regal Act is introduced in the United States to authorize the
    replacement of President Lincoln’s Greenbacks with debt based notes.
    They had lasted for 132 years.
    Ever wondered why all the world’s production seems to be moving to
    China? In a report entitled, “China’s Economy Toward the 21st
    Century,” released this year, it predicts that the per capita income
    in China in 2010, will be approximately 735 dollars. This is less than
    30 dollars higher than the World Bank definition of a low income
    Less than two months before Tony Blair came to power in England,
    another interesting entry can be found in HANSARD, 5th March 1997,
    volume 578, No. 68, columns 1869-1871, in which the Earl of Caithness
    is recorded as having stated,
    “The next government must grasp the nettle, accept their
    responsibility for controlling the money supply and change from our
    debt-based monetary system. My Lords, will they? If they do not, our
    monetary system will break us and the sorry legacy we are already
    leaving our children will be a disaster.”
    On 6 May, only four days after Tony Blair’s election as Prime
    Minister, his Chancellor of the Exchequer, Gordon Brown, announces he
    is going to give full independence from political control to the Bank
    of England.
    In his 1997 book, The Grand Chessboard, Zbigniew Brzezinski reveals
    that Germany is the largest shareholder in the World Bank. When you
    bear in mind that bankers of the Rothschild bloodline were said to own
    Germany, “lock, stock and barrel,” at the end of World War I, it is
    not difficult to see who controls the World Bank now.
    The IMF eliminate food and fuel subsidies for the poor in Indonesia.
    At the same time the IMF soaked up tens of billions of dollars to save
    Indonesia’s financiers or rather the international banks from whom
    they had borrowed.
    A document leaks out of the World Bank, called, “Master Plan for
    Brazil.” In it it spells out five requirements to ensure a flexible
    public sector workforce. These are as follows:
    Reduce Salary/Benefits
    Reduce Pensions
    Increase Work Hours
    Reduce Job Stability
    Reduce Employment
    In Brazil, Rio’s privatized electric company named, “Rio Light,” is
    responsible for repeated blackouts in neighborhoods. The company
    blames the weather in the Pacific Ocean for the blackouts, when Rio is
    on the Atlantic. The blackouts wouldn’t have anything to do with the
    fact that after privatization Rio Light axed 40% of the company’s
    workforce would it? No problem for Rio Light, as a result of that
    their share price went up 33%.
    The IMF require Argentina to cut the government budget deficit from
    its current $5.3 billion to $4.1 billion the following year, 2001. At
    that point unemployment was running at 20% of the working population.
    They then upped the ante and demanded an elimination of the deficit.
    The IMF had some ideas of how this could be achieved. Cut the
    government’s emergency employment program from $200 a month to $160 a
    They also asked for an across the board 12 – 15% cut in salaries for
    civil servants and the cutting of pensions to the elderly by 13%. By
    December of 2001, middle class Argentineans sick of literally hunting
    the streets for garbage to eat, started burning down Buenos Aires. In
    January Argentina devalued the Peso wiping out the value of many
    common people’s savings accounts. Dismayed that they can’t rape that
    country further, James Wolfensohn, President of the World Bank,
    “Almost all major utilities have been privatized.”
    How do they control the unrest within the population? Let me see, an
    Argentinean bus driver, a thirty seven year old father of five, lost
    his job as a bus driver from a company that owed him 9 months pay.
    During a demonstration against this and other injustices perpetrated
    upon him and the population, the military police shot him dead with a
    bullet through the head.
    In Tanzania with approximately 1.3 million people dying of AIDS, the
    World Bank and the IMF decided to require Tanzania to charge for what
    were previously free hospital appointments. They also ordered Tanzania
    to charge school fees for their previously free education system then
    expressed surprise when school enrolment dropped from 80% to 66%.
    The IMF and World Bank have been in charge of Tanzania’s economy since
    1985 during which time Tanzania’s GDP dropped from $309 to $210 per
    capita, standards of literacy fell and the rate of abject poverty
    increased to envelop 51% of the population.When the IMF and World Bank
    took charge in 1985, Tanzania was a socialist nation. In June 2000 the
    World Bank reported arrogantly,
    “One legacy of socialism is that most people continue to believe the
    State has a fundamental role in promoting development and providing
    social services.”
    There is rioting in Bolivia after the World Bank drastically increase
    the price of water. The World Bank claim this is necessary to provide
    for desperately needed repairs and expansion. This is poppycock, my
    own water supplier is Wessex Water, a privatized water company that
    was actually owned by Enron! Since privatization (England was the
    first country to privatize the public water supply), the quality
    dropped and the prices exploded.
    Almost all privatized water companies in Britain have consistently
    failed to meet government targets on leakages.
    Professor Joseph Stiglitz, former Chief Economist of the World Bank,
    and former Chairman of President Clinton’s Council of Economic
    Advisers, goes public over the World Bank’s, “Four Step Strategy,”
    which is designed to enslave nations to the bankers. I summarize this
    Step One: Privatization.
    This is actually where national leaders are offered 10% commissions to
    their secret Swiss bank accounts in exchange for them trimming a few
    billion dollars off the sale price of national assets. Bribery and
    corruption, pure and simple.
    Step Two: Capital Market Liberalization.
    This is the repealing any laws that taxes money going over its
    borders. Stiglitz calls this the, “hot money,” cycle. Initially cash
    comes in from abroad to speculate in real estate and currency, then
    when the economy in that country starts to look promising, this
    outside wealth is pulled straight out again, causing the economy to
    The nation then requires IMF help and the IMF provides it under the
    pretext that they raise interest rates anywhere from 30% to 80%. This
    happened in Indonesia and Brazil, also in other Asian and Latin
    American nations. These higher interest rates consequently impoverish
    a country, demolishing property values, savaging industrial production
    and draining national treasuries.
    Step Three: Market Based Pricing.
    This is where the prices of food, water and domestic gas are raised
    which predictably leads to social unrest in the respective nation, now
    more commonly referred to as, “IMF Riots.” These riots cause the
    flight of capital and government bankruptcies. This benefits the
    foreign corporations as the nations remaining assets can be purchased
    at rock bottom prices.
    Step Four: Free Trade.
    This is where international corporations burst into Asia, Latin
    America and Africa, whilst at the same time Europe and America
    barricade their own markets against third world agriculture. They also
    impose extortionate tariffs which these countries have to pay for
    branded pharmaceuticals, causing soaring rates in death and disease
    There are a lot of losers in this system, but a few winners – bankers.
    In fact the IMF and World Bank have made the sale of electricity,
    water, telephone and gas systems a condition of loans to every
    developing nation. This is estimated at 4 trillion dollars of publicly
    owned assets.
    In September of this year, Professor Joseph Stiglitz is awarded the
    Nobel Prize in economics.
    On April 12th every major paper in the USA runs a story that
    Venezuelan President Hugo Chavez had resigned as he was, “unpopular
    and dictatorial.” In fact he had been kidnapped under a coup, where he
    was imprisoned on an army base. Following sympathy from the guards,
    the coup falls apart and President Chavez is back in his office one
    day later. Interestingly he has video evidence that whilst he was
    imprisoned on that base a United States military attaché entered the
    President Chavez, demonized by the controlled western media, gives
    milk and housing to the poor, and gives land not used for production
    by big plantation owners for more than two years, to those without
    land. His big crime however, was in passing a petroleum law that
    doubled the royalty taxes from 16% to 30% on new oil discoveries,
    which affected Exxon Mobil and other international oil operators.
    He also took full control of the state oil company, PDVSA, which
    before was nominally owned by the government, but in actual fact was
    in thrall to these international oil operators. Not only that but
    President Chavez is also the President of OPEC (Organization of
    Petroleum Exporting Countries). The main reason is, however, that
    President Chavez fully rejects the World Bank’s, “Four Step Strategy,”
    and plan to reduce wages of the people for the benefit of the bankers.
    Indeed President Chavez has increased the minimum wage by 20%, which
    has increased the purchasing power of the lower paid workers and
    strengthened the economy. His minister, Miguel Bustamante Madriz,
    fully aware of the danger Venezuela poses to the bankers when people
    contrast the fact it wouldn’t let them in, for example, with Argentina
    who did, stated,
    “America can’t let us stay in power. We are an exception to the new
    globalization order. If we succeed, we are an example to all the
    America and Britain is now at war in both Afghanistan and Iraq, and
    looking toward an invasion of Iran. As I mentioned before the greatest
    debt generator of them all is war. This has pushed America to the
    brink of financial collapse. This timeline is intended as a record of
    the past, but before you look at the conclusions, you may like to look
    at one person’s prediction for the near future in this mind-blowing
    In my research, I have discovered those critics who currently condemn
    the monetary system almost universally suggest that the only solution
    is to restore a gold backed currency. I don’t think any readers of
    this timeline can be in any doubt, that such a system will be open to
    abuse by those very people who abuse it today. Indeed if we introduced
    a currency backed by chairs, I believe we would find ourselves with
    nothing to sit on!
    The only monetary system that seems to have worked in history is one
    which is backed by the goodwill of a government and is debt free, such
    as President Lincoln’s, “Greenbacks.” Fortunately, the Nobel Peace
    Prize winning economist, Milton Friedman came up with an ingenious
    solution of wresting back control of the money supply from the
    bankers, paying off all outstanding debt, and preventing inflation or
    deflation whilst this process is completed. I summarize this below.
    Using America as the example here, Friedman suggests that debt free
    United States notes be issued to pay off the United States Bonds
    (debts) on the open market. In conjunction with this, the reserve
    requirements of the day to day bank the regular person banks with, be
    proportionally raised so the mount of money in circulation remains
    As those people holding bonds are paid off in United States notes,
    they will deposit the money in the bank they bank with, thus making
    available the currency then needed by these banks to increase their
    reserves. Once all these United States bonds are paid off with United
    States notes, the banks will be at 100% reserve banking instead of the
    fractional reserve system and then fractional reserve banking can be
    If necessary, the remaining liabilities of financial institutions
    could be assumed or acquired by the United States government in a
    one-off operation. Therefore these institutions would eventually be
    paid off with United States notes for the purpose of keeping the total
    money supply stable.
    The Federal Reserve Act of 1913 and the National Banking Act of 1864
    must also be repealed and all monetary power transferred back to the
    Treasury Department. The effects of this will be seen very soon by the
    average person as their taxes would start to go down as they would no
    longer be paying interest on debt based money to a handful of central
    A law must be passed to ensure that no banker or any person in any way
    affiliated with financial institutions, be allowed to regulate
    banking. Also the United States must withdraw from all international
    debt based central banking operations ie. the IMF; the BIS; and the
    World Bank.
    If all the countries of the world adopted the conclusions above, then
    humanity will at last be free of these central bankers and their debt
    based currency. It’s a lovely idea, but first we have to get it past
    our corrupt politicians many of whom are quite aware of the scam that
    plays us on a daily basis, however rather than do the job we have
    elected them to do, they keep their mouths shut and instead look after
    themselves and their families, whilst the rest of us continue to be
    “For what will it profit men that a more prudent distribution and use
    of riches make it possible for them to gain even the whole world, if
    thereby they suffer the loss of their own souls? What will it profit
    to teach them sound principles in economics, if they permit themselves
    to be so swept away by selfishness, by unbridled and sordid greed,
    that, ‘hearing the Commandments of the Lord, they do all things
    Pope Pius XI

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