The Bank of International Settlements and Perpetual War

Written by Bruno de Landevoisin of  the STEALTHFLATION blog.

The Bank for International Settlements, otherwise known as the BIS, should more aptly be named the Bank for International division and domination.  It’s clearly an institution with global reach, whose hidden covert purpose is to impose the financial globalist’s agenda on all sovereign nation states.  The luminous photo below is of their luxurious Headquarters.
Ten times a year, once a month except in August and October, a small group of well dressed men arrives in Basel, Switzerland. Carrying elegant overnight bags and stylish brief cases, they discreetly check into the Euler Hotel, across from the railroad station.  They come to this quiet city from places as disparate as Tokyo, Paris, Brasília, London, and Washington, D.C., for the regular meeting of the most exclusive, secretive, and powerful supranational club in the world.
Each visiting member has his own office at the club, with secure telephone lines to his home country.  These elite international bankers are fully serviced by a permanent staff of about 300, including chauffeurs, chefs, guards, messengers, translators, stenographers, secretaries, and researchers. Also at their disposal are a brilliant research unit, well equipped medical facility and deep underground bunker, as well as a secluded country club with tennis courts and a swimming pool, a few kilometers outside of Basel.
Undoubtedly, we have all heard of this all important international organization, but how many of us really know much about it, or even understand its intended purpose.  The only thing that I knew about this powerful global entity was that it is often described as the Central Bank of Central Banks.  Clearly, we all need to know more, let’s constructively begin with some benign elementary historical background transcribed from Investopedia, and also lay out the venerable institution’s specific functions & mission statement, directly from the BIS website itself.images (2)
Founding and brief History of the BIS:
 Founded in 1930, the Bank for International Settlements is the oldest global financial institution and operates under the auspices of international law. But from its inception to the present day, the role of the BIS has been ever-changing, as it adapts to the dynamic global financial community and its needs. The BIS was created out of the Hague Agreements of 1930 and took over the job of the Agent General for Repatriation in Berlin. When established, the BIS was responsible for the collection, administration and distribution of reparations from Germany – as agreed upon in the Treaty of Versailles.

After World War II, the BIS turned its focus to the defense and implementation of the World Bank’s Bretton Woods System. Between the 1970s and 1980s, the BIS monitored cross-border capital flows in the wake of the oil and debt crises, which in turn led to the development of regulatory supervision of internationally active banks. More recently, it has concentrated its efforts on the global financial stability and capital reserve requirement accords. The BIS has also emerged as an emergency “funder” to nations in trouble, coming to the aid of countries such as Mexico and Brazil during their debt crises in 1982 and 1998, respectively. In cases like these, where the International Monetary Fund is already in the country, emergency funding is provided through the IMF structured program.

The BIS has also functioned as trustee and agent. For example, from 1979 to 1994, the BIS was the agent for the European Monetary System, which is the administration that paved the way for a single European currency. Today, the BIS has become the central bank of central banks. The Bank now represents the interests of nearly all of the world’s central bank institutions, and manages a significant share of their reserves, including gold holdings. The organization now serves and presides over 60 central banks worldwide. Accordingly the BIS requires the capital/asset ratio of central banks to be above a prescribed minimum international standard, for the protection of all central banks involved.

2014-08-02_1054
In broad outline, the BIS pursues its mission by:
  • Promoting discussion and facilitating collaboration among central banks.
  • Supporting dialogue with other authorities that are responsible for promoting financial stability.
  • Conducting research on policy issues confronting central banks and financial supervisory authorities.
  • Acting as a prime counterparty for central banks in their financial transactions.
  • Serving as an agent or trustee in connection with international financial operations.   
Der-BIZ-Turm-in-Basel-Hauptquartier-der-Bank-fuer-internationalen-Zahlungsausgleich-Archiv-
Now that we are up to speed on the BIS’s alleged “raison d’etre”, and fully indoctrinated in the organization’s whitewashed history, self proclaimed mission statement and assumed functions, let’s expose the true nature of this supposedly benign bastion of banking balance.  Trust me, they are anything but the modest measured men of monetary moderation and management they purport to be.  This odious institution is nothing but a conceited cunning cabal of carnivorous cannibals bent on global financial domination, who deftly deploy dreaded debt disbursements the world over. They will stop at nothing to achieve their ends, absolutely nothing.
To fully comprehend the self-serving nature of the BIS, one has to understand that it is an autocratic institution run by a very select group of the highest ranking bankers on the planet, representing both private banking interests, as well as those of the vast worldwide network of central banks that are ultimately owned by those same private commercial & financial interests.  It is important to note that these top flight international bankers have intentionally organized themselves, so as not to be directed by their own national governments for the crucial decisions and actions they take.  In effect, they are a supranational organization, controlled by an elite group of men, who preside over most of the world’s financial and monetary systems of exchange which regulate and facilitate most of the globe’s commerce.
The supreme inner club is made up of the half-dozen powerful central bankers at the apex of a privately devised international monetary system.  Their dictate, which enshrines the inner club from the rest of the lessor BIS members, is the firm belief that central banks should act independently of their home governments.  Their controlling organization is at the epicenter of global finance, and has inherently become increasingly connected and indispensable over time by design.  A glaring early example of their self-serving grandiosity can be found in their despicable double dealings before the outbreak and during the hostilities of the World Wars.
The following passage, by well-respected financial historian Adam LeBor, details the nefarious activities of Thomas McKittrick, a former president of the BIS:
The BIS was founded in Basel in 1930, where it is still headquartered today. Ostensibly set up as part of the Young Plan to administer German reparations payments for WWI, its real purpose was detailed in its statutes: to “promote the cooperation of central banks and provide additional facilities for international financial operations.” The establishment of the BIS was the culmination of the central bankers’ decades-old dream to have their own bank powerful, independent, and free from interfering politicians and nosy reporters.

Under the terms of the founding treaty, the bank’s assets could never be seized, even in times of war. Most felicitous of all, the BIS was self-financing and would be in perpetuity. Its clients were its own founders and shareholders, the central banks. The BIS, boasted Gates McGarrah, an American banker who served as its first president, was “completely removed from any government or political control.” McKittrick’s involvement with the BIS began in 1931, when he joined the German Credits Arbitration Committee, which adjudicated disputes involving German commercial banks. One of the other two members was Marcus Wallenberg, of Sweden’s Enskilda Bank, who taught McKittrick about the intricacies of international finance. Marcus and his brother Jacob were two of the most powerful bankers in the world. During the war, the Wallenberg brothers used Enskilda Bank to play both sides and harvest enormous profits.

2011-07-16180202In May 1939 McKittrick was offered the position of president of the BIS, which he readily accepted. As head of the BIS, headquartered in Basel, from 1940 to 1946, McKittrick played a crucial role in abetting Hitler’s war—and, at the same time, in revealing details about his Nazi colleagues to his friends in Washington, D.C. On McKittrick’s watch, the BIS willingly accepted looted Nazi gold, carried out foreign exchange deals for the Reichsbank, and recognized the Nazi invasion and annexation of conquered countries. By doing so, it also legitimized the role of the national banks in the occupied countries in appropriating Jewish-owned assets. Indeed, the BIS was so indispensable to the overall Nazi project that the vice-president of the Reichsbank, Emil Puhl, who was later tried for war crimes, once referred to the BIS as the Reichsbank’s only “foreign branch.” In the closing months of the war, as American GIs fought their way across Europe, McKittrick was arranging deals with Nazi industrialists to guarantee their profits after the Allied victory.

Additionally, the following indictment from Wikipedia:

As a result of Nazi collaboration allegations, at the Bretton Woods Conference held in July 1944, Norway proposed the “liquidation of the Bank for International Settlements at the earliest possible moment”. This resulted in the BIS being the subject of a disagreement between the American and British delegations. The liquidation of the bank was supported by other European delegates, as well as the United States (including Harry Dexter White, Secretary of the Treasury, and Henry Morgenthau),[6] but opposed by John Maynard Keynes, head of the British delegation. Fearing that the BIS would be dissolved by President Franklin Delano Roosevelt, Keynes went to Morgenthau hoping to prevent the dissolution, or have it postponed, but the next day the dissolution of the BIS was approved. However, the liquidation of the bank was never actually undertaken.[7] In April 1945, the new U.S. president Harry S. Truman and the British government suspended the dissolution, and the decision to liquidate the BIS was officially reversed in 1948.

Fast forward to Today.  Would the very same elite banking interests not be behind the destabilization and financing of multiple military conflicts sprouting up all over the globe?  After all, the U.S. just finished squandering over $3 trillion endlessly tussling with a fanatical bunch of burka wearing nomads in the sparse mountains of Afghanistan for well over a decade.  In the end, what, and who the hell was all of that money really for?  Might it be supranational bank financing concerns funneling their central bank issued easy money government treasury funding directly into the military industrial complex.
MENA, after years of relative calm imposed by despotic regimes often legitimized by Western commercial interests, suddenly, all at once, seemingly out of nowhere, rose up in a spontaneous combustion of political awareness, the so called Arab Spring, which has brought as much disillusionment as promise.  What was really behind this?  While Syria, on the other hand, has been in a perpetual state of war due to ISIS insurgents supported by the U.S., Saudi Arabia, and Israel.  Iraq is on the verge of complete disintegration as the same western organized ISIS move in on Baghdad.  Libya is erupting, with American, British and French embassy’s being swiftly evacuated.  What gives?  Are all of these simultaneous regional conflicts simply a sheer coincidence? Further war financing requirements perhaps.
The Hamas / Israel connection has certainly duped many, even though it is historical fact that the creation of Hamas itself was funded and supported by covert elements of the Israel government.  Why did Israel put money and arms at the disposal of Muslim extremist groups like Hamas and ISIS, only to enter into brutal conflict with them later?  Again, are the international bankers involved here as well?  Why bother with inflation when you can create DeathFlation!
The Ukraine crisis is only further intensifying after the attack on Malaysian flight MH17. In just the past week, the EU has instituted serious economic and financial sanctions, fighting has become even more fierce in the ethnic Russian speaking regions, and Russia itself has been accused of firing heavy artillery into the war zone.Ukraine-Protest_Horo-1-e1392750277144 Moreover, the U.S. now claims that Russia has demonstrably violated the terms of the Intermediate Range Nuclear Forces treaty.  Astonishingly, assistant Secretary of State, Victoria Nuland recently proudly trumpeted that U.S. sponsored NGOs (Non Governmental Organizations) had spent over $5 billion fomenting political protest on the ground in Kiev, in order to destabilize and ultimately overthrow the former president of Ukraine, Victor Yanukovych.  Again, who or what institution actually facilitated the financing of such an excessive amount of funds, and why?
Is it simply the usual bane of proxy war profiteering which is underway, or is something more sinister also a foot here.  Is the western central bank hegemonic monetary system attempting to further assert itself on the arising and defiant BRICS?  Moreover, since all out military conflict is no longer a viable option, due to assured mutual destruction from imposing nuclear arsenals, another most effective avenue for global domination would be via strategic financial and economic power.  Is this what the international banking cabal is now seizing upon?
21aPic1B2102124325_zz_anthems-cover-2007-smallA significant example of a BIS sponsored strategic global economic initiative, orchestrated by its self-serving megalomaniac banking power brokers, was its behind the scene’s role in devising and pushing forward the concept for a European Union with a single common currency.   It established a new role for itself in the postwar world, first as the financial mechanism for American efforts to rebuild Europe, and then for the accelerating project of European unification.  Some believe that the trans-national vision of a modern Europe ruled by mandarins in Brussels and Basel was originally hatched and concocted in a secret meeting held at the Bank for International Settlements.
Clearly, the driving force behind the financial engineering ambitions of the elite global bankers at the BIS has always been the same.  Namely; to further establish themselves as the indispensable international financial body, whose ultimate authority supersedes any national jurisdiction, thereby interminably dismantling and diminishing the sovereignty of the individual nation states.  In other words, they consolidate their subjugation of the local citizenry by championing the benefits of economies of scale which only globalization can achieve, and, of course, that only their financial frameworks can administer.
The UN, EU, NAU, IMF, WBC, CFR, NATO, WTO, OECD, WHO, and a myriad other IGOs (Intergovernmental organizations), all use much the same modus operandi as the BIS to expand their dominion.  In the end, it’s mostly about their self-seeking interests, entitled importance and institutional aggrandizement.  Throughout history, elite groups of men have always attempted to subjugate the masses, this is no different.  The once magnificent self determined Republic of the United States, for the people of the people, must stop these globalists dead in their tracks, before their self-serving hubris and unrelenting drive for hegemony brings unsuspecting Americans down to their knees.
Carroll Quigley, the renown academic historian, in his monumental tome Tragedy and Hope published in 1966, clearly identified the underlying scheme of this scourge. images (1) Having studied the rise and fall of civilizations, Quigley found the explanation of disintegration in the gradual transformation of social “instruments” into “institutions”, that is, transformation of social arrangements functioning to meet real social needs into social institutions serving their own purposes regardless of real social needs.
Many discerning Americans are certainly aware of the prevalence of the false Left/Right paradigm in American politics which is clearly driven by the buying off of politicians via an army of private lobbyists on behalf of avaricious corporate institutions and demanding special interest groups.  There is also a solid case to be made that our multinational banking institutions directly serve to promote this debilitating duplicitous demagoguery.  The once esteemed news networks have also degenerated into a cronyism cesspool of unabashed corporatism, no longer reporting news, but rather dishing out distilled disinformation and various valueless vicissitudes. Institutional disintegration indeed, Mr. Quigley was flat out dead right back in 66′!
Professor Carroll Quigley directed his poignant prescient prose specifically at the Bank for International Settlements:

“The Power of financial capitalism had a far reaching plan, nothing less than to create a world system of financial control in private hands able to dominate the political system of each country and the economy of the world as a whole. This system was to be controlled in a feudalistic fashion by the central banks of the world acting in concert, by secret agreements arrived at in frequent meetings and conferences. The apex of the system was to be the Bank for International Settlements in Basel, Switzerland, a private bank owned and controlled by the world’s central banks, which were themselves private corporations. Each central bank sought to dominate its government by its ability to control treasury loans, to manipulate foreign exchanges, to influence the level of economic activity in the country, and to influence co-operative politicians by subsequent rewards in the business world.”

banksters6The ominous premise of this lengthy piece is precisely why the United States should become increasingly alarmed as these globalists continue to extend their supremacy.  Just as the once proud independent self governing sovereign nation states of Europe have become subservient to an autocratic international banking class, which promptly imposed a common currency, and is now actively crafting a fiscal union to complete its ascendancy and authority, the United States also is a prime target in the cross hairs of these very same avaricious financial oligarchs.
Make no mistake, the likes of the BIS, IMF, IFC, OECD and the World Bank are on a maniacal maraudering mission to subvert the existing U.S. monetary system, via a crafty and cunning central bank, in our very own complicit Federal Reserve.
In my view, this is the only valid explanation as to why we are systematically being driven off a fiscal and monetary cliff, almost as if we were preforming a national financial and economic Hari Kari ritual.  At this point, they have mandated a market cataclysm and deliberately determined the dollar’s demise. To be sure, the BIS and IMF are waiting in the wings with a new global means of exchange based on an archetype of the presently established SDR mechanism.
Why else would the BIS be stating the following today regarding the FED’s current monetary measures?

“The temptation to postpone adjustment can prove irresistible, especially when times are good and financial booms sprinkle the fairy dust of illusory riches. The consequence is a growth model that relies too much on debt, both private and public, and which over time sows the seeds of its own demise. To return to sustainable and balanced growth, policies need to go beyond their traditional focus on the business cycle and take a longer-term perspective – one in which the financial cycle takes centre stage…They need to address head-on the structural deficiencies and resource misallocations masked by strong financial booms and revealed only in the subsequent busts. The only source of lasting prosperity is a stronger supply side. It is essential to move away from debt as the main engine of growth.”

images (3)Ask yourselves, if Janet Yellen sits on the Board of Directors of the BIS, why have she and all her 21st century predecessors been conducting a brazen, unproven, uncharted and surely precarious monetary policy with complete abandon, that totally contradicts the sage and proven advice, judiciously laid out above, by the very institution which is central to monitoring, regulating and advising on global central bank direction.
Something stinks here, it just doesn’t add up. Is our Federal Reserve, whose top leadership also happens to be elite members of the BIS banking cabal club, actually double dealing here?  Setting us up for a great fall, so the financial globalists can come sweeping in to our rescue, installing themselves as our monetary overlords?  Far fetched, you say? Remember, this is well within their past predatory precepts, and typical of their self-serving Modus Operandi!
If  we can’t convince you, perhaps the view of billionaire hedge-fund legend Paul Singer will:

We were astounded to learn that the board of the BIS is comprised of none other than the heads of the major central banks of the developed world! Yes – Yellen, Draghi, et al! So, these central bankers are simultaneously failing to tell their respective governments that (1) monetary policy has done enough; (2) monetary policy is causing massive risks and distortions; and (3) political leaders must grab the reins and make structural changes, these same central bankers are authorizing BIS reports that will enable them to say, after the coming multifactor crisis, that they told us about the risks. 

president-andrew-jackson

We wonder who from the Fed authorized the report, and why they haven’t shared these harsh views of Fed policy in the FOMC meeting minutes or the endless public speeches by Fed officials. It is duplicitous for the Fed to authorize the views in the BIS report yet keep quiet about them elsewhere. But then, the Fed has never accepted much responsibility for the 2008 crisis, despite its decisions to keep interest rates artificially low for an extended period of time, to do a poor job of regulating the banking system and to abet Fannie and Freddie in their utter irresponsibility. History rhymes. The Fed has created the fuel for another crisis, seems to know it judging by the BIS report, and yet is covering itself with an “I told you so” report from the BIS rather than changing course.
In closing, the following list identifies the current Board of Directors who preside over the Bank for International Settlements today, see if you recognize any of these supranational scoundrels.
The BIS Board of Directors:
Chairman: Christian Noyer, Paris Mark Carney, London Agustín Carstens, Mexico City Luc Coene, Brussels Jon Cunliffe, London Andreas Dombret, Frankfurt am Main Mario Draghi, Frankfurt am Main William C Dudley, New York Stefan Ingves, Stockholm Thomas Jordan, Zurich Klaas Knot, Amsterdam Haruhiko Kuroda, Tokyo Ann Le Lorier, Paris Stephen S Poloz, Ottawa Raghuram Rajan, Mumbai Jan Smets, Brussels Alexandre A Tombini, Brasília Ignazio Visco, Rome Jens Weidmann, Frankfurt am Main Janet L Yellen, Washington Zhou Xiaochuan, Beijing
Banking-Elite-infograph

  The Globalists are indeed on the move……………

The Bank of International Settlements; The Shadow Government of Central Banks

The article below is an excellent summary of modern central banking and it’s involvement with economic wars.  It leaves out some very important facts about its origins, which go back to Hjalmar Schacht, President of the Reichsbank and Minister of Economics under Adolph Hitler.  The BIS was used to handle all the gold and assets stolen from pillaged countries, but I digress.

Written by Bruno de Landevoisin of  the STEALTHFLATION blog.
The Bank for International Settlements, otherwise known as the BIS, should more aptly be named the Bank for International division and domination.  It’s clearly an institution with global reach, whose hidden covert purpose is to impose the financial globalist’s agenda on all sovereign nation states.  The luminous photo below is of their luxurious Headquarters.
Ten times a year, once a month except in August and October, a small group of well dressed men arrives in Basel, Switzerland. Carrying elegant overnight bags and stylish brief cases, they discreetly check into the Euler Hotel, across from the railroad station.  They come to this quiet city from places as disparate as Tokyo, Paris, Brasília, London, and Washington, D.C., for the regular meeting of the most exclusive, secretive, and powerful supranational club in the world.
Each visiting member has his own office at the club, with secure telephone lines to his home country.  These elite international bankers are fully serviced by a permanent staff of about 300, including chauffeurs, chefs, guards, messengers, translators, stenographers, secretaries, and researchers. Also at their disposal are a brilliant research unit, well equipped medical facility and deep underground bunker, as well as a secluded country club with tennis courts and a swimming pool, a few kilometers outside of Basel.
Undoubtedly, we have all heard of this all important international organization, but how many of us really know much about it, or even understand its intended purpose.  The only thing that I knew about this powerful global entity was that it is often described as the Central Bank of Central Banks.  Clearly, we all need to know more, let’s constructively begin with some benign elementary historical background transcribed from Investopedia, and also lay out the venerable institution’s specific functions & mission statement, directly from the BIS website itself.images (2)
Founding and brief History of the BIS:
 Founded in 1930, the Bank for International Settlements is the oldest global financial institution and operates under the auspices of international law. But from its inception to the present day, the role of the BIS has been ever-changing, as it adapts to the dynamic global financial community and its needs. The BIS was created out of the Hague Agreements of 1930 and took over the job of the Agent General for Repatriation in Berlin. When established, the BIS was responsible for the collection, administration and distribution of reparations from Germany – as agreed upon in the Treaty of Versailles.
After World War II, the BIS turned its focus to the defense and implementation of the World Bank’s Bretton Woods System. Between the 1970s and 1980s, the BIS monitored cross-border capital flows in the wake of the oil and debt crises, which in turn led to the development of regulatory supervision of internationally active banks. More recently, it has concentrated its efforts on the global financial stability and capital reserve requirement accords. The BIS has also emerged as an emergency “funder” to nations in trouble, coming to the aid of countries such as Mexico and Brazil during their debt crises in 1982 and 1998, respectively. In cases like these, where the International Monetary Fund is already in the country, emergency funding is provided through the IMF structured program.

The BIS has also functioned as trustee and agent. For example, from 1979 to 1994, the BIS was the agent for the European Monetary System, which is the administration that paved the way for a single European currency. Today, the BIS has become the central bank of central banks. The Bank now represents the interests of nearly all of the world’s central bank institutions, and manages a significant share of their reserves, including gold holdings. The organization now serves and presides over 60 central banks worldwide. Accordingly the BIS requires the capital/asset ratio of central banks to be above a prescribed minimum international standard, for the protection of all central banks involved.
2014-08-02_1054
In broad outline, the BIS pursues its mission by:
  • Promoting discussion and facilitating collaboration among central banks.
  • Supporting dialogue with other authorities that are responsible for promoting financial stability.
  • Conducting research on policy issues confronting central banks and financial supervisory authorities.
  • Acting as a prime counterparty for central banks in their financial transactions.
  • Serving as an agent or trustee in connection with international financial operations.   
Der-BIZ-Turm-in-Basel-Hauptquartier-der-Bank-fuer-internationalen-Zahlungsausgleich-Archiv-
Now that we are up to speed on the BIS’s alleged “raison d’etre”, and fully indoctrinated in the organization’s whitewashed history, self proclaimed mission statement and assumed functions, let’s expose the true nature of this supposedly benign bastion of banking balance.  Trust me, they are anything but the modest measured men of monetary moderation and management they purport to be.  This odious institution is nothing but a conceited cunning cabal of carnivorous cannibals bent on global financial domination, who deftly deploy dreaded debt disbursements the world over. They will stop at nothing to achieve their ends, absolutely nothing.
To fully comprehend the self-serving nature of the BIS, one has to understand that it is an autocratic institution run by a very select group of the highest ranking bankers on the planet, representing both private banking interests, as well as those of the vast worldwide network of central banks that are ultimately owned by those same private commercial & financial interests.  It is important to note that these top flight international bankers have intentionally organized themselves, so as not to be directed by their own national governments for the crucial decisions and actions they take.  In effect, they are a supranational organization, controlled by an elite group of men, who preside over most of the world’s financial and monetary systems of exchange which regulate and facilitate most of the globe’s commerce.
The supreme inner club is made up of the half-dozen powerful central bankers at the apex of a privately devised international monetary system.  Their dictate, which enshrines the inner club from the rest of the lessor BIS members, is the firm belief that central banks should act independently of their home governments.  Their controlling organization is at the epicenter of global finance, and has inherently become increasingly connected and indispensable over time by design.  A glaring early example of their self-serving grandiosity can be found in their despicable double dealings before the outbreak and during the hostilities of the World Wars.
The following passage, by well-respected financial historian Adam LeBor, details the nefarious activities of Thomas McKittrick, a former president of the BIS:
The BIS was founded in Basel in 1930, where it is still headquartered today. Ostensibly set up as part of the Young Plan to administer German reparations payments for WWI, its real purpose was detailed in its statutes: to “promote the cooperation of central banks and provide additional facilities for international financial operations.” The establishment of the BIS was the culmination of the central bankers’ decades-old dream to have their own bank powerful, independent, and free from interfering politicians and nosy reporters.
Under the terms of the founding treaty, the bank’s assets could never be seized, even in times of war. Most felicitous of all, the BIS was self-financing and would be in perpetuity. Its clients were its own founders and shareholders, the central banks. The BIS, boasted Gates McGarrah, an American banker who served as its first president, was “completely removed from any government or political control.” McKittrick’s involvement with the BIS began in 1931, when he joined the German Credits Arbitration Committee, which adjudicated disputes involving German commercial banks. One of the other two members was Marcus Wallenberg, of Sweden’s Enskilda Bank, who taught McKittrick about the intricacies of international finance. Marcus and his brother Jacob were two of the most powerful bankers in the world. During the war, the Wallenberg brothers used Enskilda Bank to play both sides and harvest enormous profits.

2011-07-16180202In May 1939 McKittrick was offered the position of president of the BIS, which he readily accepted. As head of the BIS, headquartered in Basel, from 1940 to 1946, McKittrick played a crucial role in abetting Hitler’s war—and, at the same time, in revealing details about his Nazi colleagues to his friends in Washington, D.C. On McKittrick’s watch, the BIS willingly accepted looted Nazi gold, carried out foreign exchange deals for the Reichsbank, and recognized the Nazi invasion and annexation of conquered countries. By doing so, it also legitimized the role of the national banks in the occupied countries in appropriating Jewish-owned assets. Indeed, the BIS was so indispensable to the overall Nazi project that the vice-president of the Reichsbank, Emil Puhl, who was later tried for war crimes, once referred to the BIS as the Reichsbank’s only “foreign branch.” In the closing months of the war, as American GIs fought their way across Europe, McKittrick was arranging deals with Nazi industrialists to guarantee their profits after the Allied victory.
Additionally, the following indictment from Wikipedia:
As a result of Nazi collaboration allegations, at the Bretton Woods Conference held in July 1944, Norway proposed the “liquidation of the Bank for International Settlements at the earliest possible moment”. This resulted in the BIS being the subject of a disagreement between the American and British delegations. The liquidation of the bank was supported by other European delegates, as well as the United States (including Harry Dexter White, Secretary of the Treasury, and Henry Morgenthau),[6] but opposed by John Maynard Keynes, head of the British delegation. Fearing that the BIS would be dissolved by President Franklin Delano Roosevelt, Keynes went to Morgenthau hoping to prevent the dissolution, or have it postponed, but the next day the dissolution of the BIS was approved. However, the liquidation of the bank was never actually undertaken.[7] In April 1945, the new U.S. president Harry S. Truman and the British government suspended the dissolution, and the decision to liquidate the BIS was officially reversed in 1948.
Fast forward to Today.  Would the very same elite banking interests not be behind the destabilization and financing of multiple military conflicts sprouting up all over the globe?  After all, the U.S. just finished squandering over $3 trillion endlessly tussling with a fanatical bunch of burka wearing nomads in the sparse mountains of Afghanistan for well over a decade.  In the end, what, and who the hell was all of that money really for?  Might it be supranational bank financing concerns funneling their central bank issued easy money government treasury funding directly into the military industrial complex.
MENA, after years of relative calm imposed by despotic regimes often legitimized by Western commercial interests, suddenly, all at once, seemingly out of nowhere, rose up in a spontaneous combustion of political awareness, the so called Arab Spring, which has brought as much disillusionment as promise.  What was really behind this?  While Syria, on the other hand, has been in a perpetual state of war due to ISIS insurgents supported by the U.S., Saudi Arabia, and Israel.  Iraq is on the verge of complete disintegration as the same western organized ISIS move in on Baghdad.  Libya is erupting, with American, British and French embassy’s being swiftly evacuated.  What gives?  Are all of these simultaneous regional conflicts simply a sheer coincidence? Further war financing requirements perhaps.
The Hamas / Israel connection has certainly duped many, even though it is historical fact that the creation of Hamas itself was funded and supported by covert elements of the Israel government.  Why did Israel put money and arms at the disposal of Muslim extremist groups like Hamas and ISIS, only to enter into brutal conflict with them later?  Again, are the international bankers involved here as well?  Why bother with inflation when you can create DeathFlation!
The Ukraine crisis is only further intensifying after the attack on Malaysian flight MH17. In just the past week, the EU has instituted serious economic and financial sanctions, fighting has become even more fierce in the ethnic Russian speaking regions, and Russia itself has been accused of firing heavy artillery into the war zone.Ukraine-Protest_Horo-1-e1392750277144 Moreover, the U.S. now claims that Russia has demonstrably violated the terms of the Intermediate Range Nuclear Forces treaty.  Astonishingly, assistant Secretary of State, Victoria Nuland recently proudly trumpeted that U.S. sponsored NGOs (Non Governmental Organizations) had spent over $5 billion fomenting political protest on the ground in Kiev, in order to destabilize and ultimately overthrow the former president of Ukraine, Victor Yanukovych.  Again, who or what institution actually facilitated the financing of such an excessive amount of funds, and why?
Is it simply the usual bane of proxy war profiteering which is underway, or is something more sinister also a foot here.  Is the western central bank hegemonic monetary system attempting to further assert itself on the arising and defiant BRICS?  Moreover, since all out military conflict is no longer a viable option, due to assured mutual destruction from imposing nuclear arsenals, another most effective avenue for global domination would be via strategic financial and economic power.  Is this what the international banking cabal is now seizing upon?
21aPic1B2102124325_zz_anthems-cover-2007-smallA significant example of a BIS sponsored strategic global economic initiative, orchestrated by its self-serving megalomaniac banking power brokers, was its behind the scene’s role in devising and pushing forward the concept for a European Union with a single common currency.   It established a new role for itself in the postwar world, first as the financial mechanism for American efforts to rebuild Europe, and then for the accelerating project of European unification.  Some believe that the trans-national vision of a modern Europe ruled by mandarins in Brussels and Basel was originally hatched and concocted in a secret meeting held at the Bank for International Settlements.
Clearly, the driving force behind the financial engineering ambitions of the elite global bankers at the BIS has always been the same.  Namely; to further establish themselves as the indispensable international financial body, whose ultimate authority supersedes any national jurisdiction, thereby interminably dismantling and diminishing the sovereignty of the individual nation states.  In other words, they consolidate their subjugation of the local citizenry by championing the benefits of economies of scale which only globalization can achieve, and, of course, that only their financial frameworks can administer.
The UN, EU, NAU, IMF, WBC, CFR, NATO, WTO, OECD, WHO, and a myriad other IGOs (Intergovernmental organizations), all use much the same modus operandi as the BIS to expand their dominion.  In the end, it’s mostly about their self-seeking interests, entitled importance and institutional aggrandizement.  Throughout history, elite groups of men have always attempted to subjugate the masses, this is no different.  The once magnificent self determined Republic of the United States, for the people of the people, must stop these globalists dead in their tracks, before their self-serving hubris and unrelenting drive for hegemony brings unsuspecting Americans down to their knees.
Carroll Quigley, the renown academic historian, in his monumental tome Tragedy and Hope published in 1966, clearly identified the underlying scheme of this scourge. images (1) Having studied the rise and fall of civilizations, Quigley found the explanation of disintegration in the gradual transformation of social “instruments” into “institutions”, that is, transformation of social arrangements functioning to meet real social needs into social institutions serving their own purposes regardless of real social needs.
Many discerning Americans are certainly aware of the prevalence of the false Left/Right paradigm in American politics which is clearly driven by the buying off of politicians via an army of private lobbyists on behalf of avaricious corporate institutions and demanding special interest groups.  There is also a solid case to be made that our multinational banking institutions directly serve to promote this debilitating duplicitous demagoguery.  The once esteemed news networks have also degenerated into a cronyism cesspool of unabashed corporatism, no longer reporting news, but rather dishing out distilled disinformation and various valueless vicissitudes. Institutional disintegration indeed, Mr. Quigley was flat out dead right back in 66′!
Professor Carroll Quigley directed his poignant prescient prose specifically at the Bank for International Settlements:
“The Power of financial capitalism had a far reaching plan, nothing less than to create a world system of financial control in private hands able to dominate the political system of each country and the economy of the world as a whole. This system was to be controlled in a feudalistic fashion by the central banks of the world acting in concert, by secret agreements arrived at in frequent meetings and conferences. The apex of the system was to be the Bank for International Settlements in Basel, Switzerland, a private bank owned and controlled by the world’s central banks, which were themselves private corporations. Each central bank sought to dominate its government by its ability to control treasury loans, to manipulate foreign exchanges, to influence the level of economic activity in the country, and to influence co-operative politicians by subsequent rewards in the business world.”
banksters6The ominous premise of this lengthy piece is precisely why the United States should become increasingly alarmed as these globalists continue to extend their supremacy.  Just as the once proud independent self governing sovereign nation states of Europe have become subservient to an autocratic international banking class, which promptly imposed a common currency, and is now actively crafting a fiscal union to complete its ascendancy and authority, the United States also is a prime target in the cross hairs of these very same avaricious financial oligarchs.
Make no mistake, the likes of the BIS, IMF, IFC, OECD and the World Bank are on a maniacal maraudering mission to subvert the existing U.S. monetary system, via a crafty and cunning central bank, in our very own complicit Federal Reserve.
In my view, this is the only valid explanation as to why we are systematically being driven off a fiscal and monetary cliff, almost as if we were preforming a national financial and economic Hari Kari ritual.  At this point, they have mandated a market cataclysm and deliberately determined the dollar’s demise. To be sure, the BIS and IMF are waiting in the wings with a new global means of exchange based on an archetype of the presently established SDR mechanism.
Why else would the BIS be stating the following today regarding the FED’s current monetary measures?
“The temptation to postpone adjustment can prove irresistible, especially when times are good and financial booms sprinkle the fairy dust of illusory riches. The consequence is a growth model that relies too much on debt, both private and public, and which over time sows the seeds of its own demise. To return to sustainable and balanced growth, policies need to go beyond their traditional focus on the business cycle and take a longer-term perspective – one in which the financial cycle takes centre stage…They need to address head-on the structural deficiencies and resource misallocations masked by strong financial booms and revealed only in the subsequent busts. The only source of lasting prosperity is a stronger supply side. It is essential to move away from debt as the main engine of growth.”
images (3)Ask yourselves, if Janet Yellen sits on the Board of Directors of the BIS, why have she and all her 21st century predecessors been conducting a brazen, unproven, uncharted and surely precarious monetary policy with complete abandon, that totally contradicts the sage and proven advice, judiciously laid out above, by the very institution which is central to monitoring, regulating and advising on global central bank direction.
Something stinks here, it just doesn’t add up. Is our Federal Reserve, whose top leadership also happens to be elite members of the BIS banking cabal club, actually double dealing here?  Setting us up for a great fall, so the financial globalists can come sweeping in to our rescue, installing themselves as our monetary overlords?  Far fetched, you say? Remember, this is well within their past predatory precepts, and typical of their self-serving Modus Operandi!
If  we can’t convince you, perhaps the view of billionaire hedge-fund legend Paul Singer will:
We were astounded to learn that the board of the BIS is comprised of none other than the heads of the major central banks of the developed world! Yes – Yellen, Draghi, et al! So, these central bankers are simultaneously failing to tell their respective governments that (1) monetary policy has done enough; (2) monetary policy is causing massive risks and distortions; and (3) political leaders must grab the reins and make structural changes, these same central bankers are authorizing BIS reports that will enable them to say, after the coming multifactor crisis, that they told us about the risks. 

president-andrew-jackson

We wonder who from the Fed authorized the report, and why they haven’t shared these harsh views of Fed policy in the FOMC meeting minutes or the endless public speeches by Fed officials. It is duplicitous for the Fed to authorize the views in the BIS report yet keep quiet about them elsewhere. But then, the Fed has never accepted much responsibility for the 2008 crisis, despite its decisions to keep interest rates artificially low for an extended period of time, to do a poor job of regulating the banking system and to abet Fannie and Freddie in their utter irresponsibility. History rhymes. The Fed has created the fuel for another crisis, seems to know it judging by the BIS report, and yet is covering itself with an “I told you so” report from the BIS rather than changing course.
In closing, the following list identifies the current Board of Directors who preside over the Bank for International Settlements today, see if you recognize any of these supranational scoundrels.
The BIS Board of Directors:
Chairman: Christian Noyer, Paris Mark Carney, London Agustín Carstens, Mexico City Luc Coene, Brussels Jon Cunliffe, London Andreas Dombret, Frankfurt am Main Mario Draghi, Frankfurt am Main William C Dudley, New York Stefan Ingves, Stockholm Thomas Jordan, Zurich Klaas Knot, Amsterdam Haruhiko Kuroda, Tokyo Ann Le Lorier, Paris Stephen S Poloz, Ottawa Raghuram Rajan, Mumbai Jan Smets, Brussels Alexandre A Tombini, Brasília Ignazio Visco, Rome Jens Weidmann, Frankfurt am Main Janet L Yellen, Washington Zhou Xiaochuan, Beijing
Banking-Elite-infograph

  The Globalists are indeed on the move……………

July 24, 2014: House Committee on Oversight and Government Reform will be marking-up Ron Paul’s #AuditTheFed bill

Campaign for Liberty

Dear Thomas Jefferson,

Tomorrow, the House Committee on Oversight and Government Reform will be marking-up Ron Paul’s Audit the Fed bill (H.R. 24), which was introduced in this Congress by Representative Paul Broun.

This is a major step toward getting House and Senate floor votes on Audit the Fed this year.

And it is a tribute to the efforts of Campaign for Liberty members like you!

But we cannot drop our guard!

Although Campaign for Liberty staff has heard that the Committee intends to mark up a clean bill, some members have tried to amend the bill in the past to water down the audit.

If we can secure victory in the committee, we can then turn up the pressure to get a last-minute vote on Audit the Fed before the August recess.

Another win in the House would greatly help us force Harry Reid to finally schedule a Senate vote on Audit the Fed before the fall election.

So please, call Rep. Jackie Speier at (202) 225-3531 and tell your representative to do all they can to make sure the House passes a clean Audit the Fed bill before the August recess!

If your representative is on the Oversight and Government Reform Committee, ask them to vote against any amendment that would water down Audit the Fed or attach unrelated issues to it.

Note: Campaign for Liberty is supporting one amendment, offered by committee Chairman Darrell Issa, to remove redundant language from H.R. 24.

You can see the list of Committee members here.

At the beginning of this Congress, many political observers predicted that with C4L Chairman Ron Paul no longer serving in Congress, Audit the Fed wouldn’t get anywhere.

But you proved them wrong!

Immediately after Georgia Representative Paul Broun introduced Audit the Fed, C4L members began flooding the House with petitions, emails, and phone calls demanding their representative support the bill.

And you helped make history.

Because of your actions, Audit the Fed obtained the support of a majority of cosponsors for the third Congress in a row!

But now is no time to rest on our laurels. You can bet the Fed and the well-heeled lobbyists for the Big Banks and Wall Street firms that benefit from Fed secrecy will keep fighting us tooth and nail to foil our attempts to get a vote on Audit the Fed.

And once we get it through the House, we are going to need all the resources we can muster to turn the heat up even more on Harry Reid and wavering senators to get a vote in the Senate.

With many of Reid’s Senate cronies already feeling the heat from the ObamaCare disaster, they may not want to continue to help Reid do the banksters’ bidding by blocking a bill that has twice passed the House of Representatives and is supported by nearly 75% of the American people.

As you can see, we may have our best chance yet to get Audit the Fed voted on in the Senate!

But first, we must win in the House, so please call your representative today.

Tell them to support a clean vote on Audit the Fed.

If your representative is on the House Committee on Oversight and Government Reform, urge them to oppose any amendments that would water down or weaken support for Audit the Fed by adding unrelated issues to the bill.

And if you can, please support C4L’s efforts to pass Audit the Fed with your most generous contribution of $50, $30, $20, or even $10 to help us make a final push in the House and carry our momentum into the Senate.

In Liberty,

Norm Singleton
Vice President of Policy

P.S. Thanks to the hard work of Campaign for Liberty members like you, Audit the Fed (H.R. 24) is moving in the U.S. House! Tomorrow, the House Committee on Oversight and Government Reform will mark up H.R. 24 – a huge step toward getting a House floor vote.

So please, call Rep. Jackie Speier at (202) 225-3531 and ask your representative to do all they can to make sure the House votes on a clean version of Audit the Fed before the August recess.

And if your representative is on the Oversight and Government Reform Committee, tell them to oppose any amendment that would water down Audit the Fed or attach unrelated issues to it.

Note: Campaign for Liberty is supporting one amendment, offered by committee Chairman Darrell Issa, to remove redundant language from H.R. 24.

Audit the Fed Bill (HR24) MUST BE VOTED ON!

Campaign for Liberty

Dear Thomas Jefferson,

Your representative needs to hear from you immediately on Audit the Fed. 

Thursday, the Financial Services Committee will hold its long-overdue hearing called “Legislation to Reform the Federal Reserve on Its 100-Year Anniversary.” 

As you know, Ron Paul’s Audit the Fed bill would bring much-needed transparency to the Federal Reserve System so the American people can finally begin to learn what it is doing to our money. 

But H.R. 24, the “Federal Reserve Transparency Act,” didn’t even make the agenda

That’s why I need you to contact Rep. Jackie Speier at (202) 225-3531

Urge your representative to bring up Audit the Fed at the hearing and request a markup on H.R. 24 as a standalone bill from Committee Chairman Jeb Hensarling. 

Then, after you’ve called them, if you haven’t yet done so be sure and sign your petition to House Leadership and your senators urging them to pass Audit the Fed now! 

Politicians always listen better when they’re running for office. 

And as we get closer to the fall elections, they’ll be listening even more intently. 

Polling shows Audit the Fed is supported by nearly 75 percent of the American people. 

For the third Congress in a row, this legislation has been cosponsored by a majority of the House of Representatives

In July 2012, when Audit the Fed last received a vote on the floor of the House, it passed overwhelmingly under suspension of the rules by a vote of 327-98. 

It’s time for the House to act and place the ball in Harry Reid’s court so Americans can see just who really is blocking transparency at the Federal Reserve. 

That’s why I hope you’ll urge your representative to request that H.R. 24 receive a markup in the Financial Services Committee from Chairman Jeb Hensarling and be referred to the House floor for a standalone vote. 

Then be sure to sign your petition telling House Leadership and your senators to Audit the Fed now! 

Campaign for Liberty’s efforts to Audit the Fed rely on the grassroots action of supporters like you. 

Together, we’ve dragged the Fed out of the shadows and relative obscurity that it operated in for nearly a century.

Now is the time to increase the spotlight on the Federal Reserve System. 

Please take action today! 

In Liberty,

Tim Shoemaker 
Director of Legislation 

P.S. This week, the Financial Services Committee will hold its long overdue hearing called “Legislation to Reform the Federal Reserve on Its 100-Year Anniversary,” but H.R. 24, the “Federal Reserve Transparency Act” isn’t even on the agenda! 

That’s why I need you to contact Rep. Jackie Speier at (202) 225-3531

Urge your representative to bring up Audit the Fed at the hearing and request a markup on H.R. 24 as a standalone bill from Committee Chairman Jeb Hensarling. 

Then, after you’ve called them, if you haven’t yet done so be sure and sign your petition to House Leadership and your senators urging them to pass Audit the Fed now! 

All the Presidents Bankers by Nomi Prins

This will be my next read for sure!  Listen to the Jack Blood show interview.  In the 2nd half he interviews Nomi Prins.  Amazing amount of information is covered in less than 1 hour.

 Buy on Amazon

The Jack Blood Show – April 14 2014

April 14, 2014 by   
Filed under Archive

Who rules America?

All the Presidents’ Bankers is a groundbreaking narrative of how an elite group of men transformed the American economy and government, dictated foreign and domestic policy, and shaped world history.

Culled from original presidential archival documents, All the Presidents’ Bankers delivers an explosive account of the hundred-year interdependence between the White House and Wall Street that transcends a simple analysis of money driving politics—or greed driving bankers.

Prins ushers us into the intimate world of exclusive clubs, vacation spots, and Ivy League universities that binds presidents and financiers. She unravels the multi-generational blood, intermarriage, and protégé relationships that have confined national influence to a privileged cluster of people. These families and individuals recycle their power through elected office and private channels in Washington, DC.

All the Presidents’ Bankers sheds new light on pivotal historic events—such as why, after the Panic of 1907, America’s dominant bankers convened to fashion the Federal Reserve System; how J. P. Morgan’s ambitions motivated President Wilson during World War I; how Chase and National City Bank chairmen worked secretly with President Roosevelt to rescue capitalism during the Great Depression while J.P. Morgan Jr. invited Roosevelt’s son yachting; and how American financiers collaborated with President Truman to construct the World Bank and IMF after World War II.

Prins divulges how, through the Cold War and Vietnam era, presidents and bankers pushed America’s superpower status and expansion abroad, while promoting broadly democratic values and social welfare at home. But from the 1970s, Wall Street’s rush to secure Middle East oil profits altered the nature of political-financial alliances. Bankers’ profit motive trumped heritage and allegiance to public service, while presidents lost control over the economy—as was dramatically evident in the financial crisis of 2008.

This unprecedented history of American power illuminates how the same financiers retained their authoritative position through history, swaying presidents regardless of party affiliation. All the Presidents’ Bankers explores the alarming global repercussions of a system lacking barriers between public office and private power. Prins leaves us with an ominous choice: either we break the alliances of the power elite, or they will break us.

Will Democrats Stand With Rand and Support #AuditTheFed?

They should.  Many Democrats supported Occupy during the 2011-2012 American Spring which resulted in very little.  Now, RINO (that is not an insult but a compliment) Senator Rand Paul is supporting the 2014 Federal Reserve Transparency Act, otherwise known as #AuditTheFed.

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More to come but here is the letter from Ron Paul seeking support for #AudittheFed:

http://fedup100.org/blog/support-hr24-to-auditthefed-in-2014

The Banker Commodity Cartel: Koch, JP Morgan Chase, and Goldman Sachs

The story of how JPMorgan, Goldman and the rest of the Too Big To Fails and Prosecutes, cornered, monopolized and became a full-blown cartel – with the Fed’s explicit blessing – in the physical commodity market is nothing new to regular readers: to those new to this story, we suggest reading of our story from June 2011 (over two and a half years ago),  “Goldman, JP Morgan Have Now Become A Commodity Cartel As They Slowly Recreate De Beers’ Diamond Monopoly.” That, or Matt Taibbi’s latest article written in his usual florid and accessible style, in which he explains how the “Vampire Squid strikes again” courtesy of the “loophole that destroyed the world” to wit: “it would take half a generation – till now, basically – to understand the most explosive part of the bill, which additionally legalized new forms of monopoly, allowing banks to merge with heavy industry. A tiny provision in the bill also permitted commercial banks to delve into any activity that is “complementary to a financial activity and does not pose a substantial risk to the safety or soundness of depository institutions or the financial system generally.”Complementary to a financial activity. What the hell did that mean?… Fifteen years later, in fact, it now looks like Wall Street and its lawyers took the term to be a synonym for ruthless campaigns of world domination.
Some key excerpts:
Today, banks like Morgan Stanley, JPMorgan Chase and Goldman Sachs own oil tankers, run airports and control huge quantities of coal, natural gas, heating oil, electric power and precious metals. They likewise can now be found exerting direct control over the supply of a whole galaxy of raw materials crucial to world industry and to society in general, including everything from food products to metals like zinc, copper, tin, nickel and, most infamously thanks to a recent high-profile scandal, aluminum. And they’re doing it not just here but abroad as well: In Denmark, thousands took to the streets in protest in recent weeks, vampire-squid banners in hand, when news came out that Goldman Sachs was about to buy a 19 percent stake in Dong Energy, a national electric provider. The furor inspired mass resignations of ministers from the government’s ruling coalition, as the Danish public wondered how an American investment bank could possibly hold so much influence over the state energy grid.
The motive for the Kochs, or anyone else, to hoard a commodity like oil can be almost beautiful in its simplicity. Basically, a bank or a trading company wants to buy commodities cheap in the present and sell them for a premium as futures. This trade, sometimes called “arbitraging the contango,” works best if the cost of storing your oil or metals or whatever you’re dealing with is negligible – you make more money off the futures trade if you don’t have to pay rent while you wait to deliver.
So when financial firms suddenly start buying oil tankers or warehouses, they could be doing so to make bets pay off, as part of a speculative strategy – which is why the banks’ sudden acquisitions of metals-storage companies in 2010 is so noteworthy.
These were not minor projects. The firms put high-ranking executives in charge of these operations. Goldman’s acquisition of Metro was the project of Isabelle Ealet, the bank’s then-global commodities chief. (In a curious coincidence commented upon by several sources for this story, many of Goldman’s most senior officials, including CEO Lloyd Blankfein and president Gary Cohn, started their careers in Goldman’s commodities division.)
Then there are the political connections:
In 2010, a decade after the Rich pardon, Holder was attorney general, but under Barack Obama, and two Rich-created firms, along with two banks that have been major donors to the Democratic Party, all made moves to buy up metals warehouses. In near simultaneous fashion, Goldman, Chase, Glencore and Trafigura bought companies that control warehouses all over the world for the LME, or London Metals Exchange. The LME is a privately owned exchange for world metals trading. It’s the world’s primary hub for determining metals prices and also for trading metals-based futures, options, swaps and other instruments.
“If they were just interested in collecting rent for metals storage, they’d have bought all kinds of warehouses,” says Manal Mehta, the founder of Sunesis Capital, a hedge fund that has done extensive research on the banks’ forays into the commodities markets. “But they seemed to focus on these official LME facilities.”
The JPMorgan deal seemed to be in direct violation of an order sent to the bank by the Fed in 2005, which declared the bank was not authorized to “own, operate, or invest in facilities for the extraction, transportation, storage, or distribution of commodities.”The way the Fed later explained this to the Senate was that the purchase of Henry Bath was OK because it considered the acquisition of this commodities company kosher within the context of a larger sale that the Fed was cool with – “If the bulk of the acquisition is a permissible activity, they’re allowed to include a small amount of impermissible activities.”
What’s more, according to LME regulations, no warehouse company can also own metal or make trades on the exchange. While they may have been following the letter of the law, they were certainly violating the spirit: Goldman preposterously seems to have engaged in all three activities simultaneously, changing a hat every time it wanted to switch roles. It conducted its metal trades through its commodities subsidiary J. Aron, and then put Metro, its warehouse company, in charge of the storage, and according to industry experts, Goldman most likely owned some metal, though the company has remained vague on the subject.
If you’re wondering why the LME would permit a seemingly blatant violation of its own rules, a good place to start would be to look at who owned the LME at the time. Although it eventual­ly sold itself to a Hong Kong company in 2012, in 2010 the LME was owned by a consortium of banks and financial companies. The two largest shareholders? Goldman and JPMorgan Chase.
Humorously, another was Koch Metals (2.32 percent), a commodities concern that’s part of the Koch brothers’ empire. The Kochs have been caught up in their own commodity-manipulation schemes, including an episode in 2008, in which they rented out huge tankers and sed them to store excess oil offshore essentially as floating warehouses, taking cheap oil out of available supply and thereby helping to drive up energy prices. Additionally, some banks have been accused of similar oil-hoarding schemes.
And then there is of course Blythe, who is now looking for a new job precisely as a result of the cartel story:
Chase’s own head of commodities operations, Blythe Masters – an even more famed Wall Street figure, sometimes described as the inventor of the credit default swap – admitted that her company’s warehouse interests weren’t just a casual thing. “Just being able to trade financial commodities is a serious limitation because financial commodities represent only a tiny fraction of the reality of the real commodity exposure picture,” she said in 2010.
Loosely translated, Masters was saying that there was a limited amount of money to be made simply trading commodities in the traditional legal manner. The solution? “We need to be active in the underlying physical commodity markets,” she said, “in order to understand and make prices.”
We need to make prices. The head of Chase’s commodities division actually said this, out loud, and it speaks to both the general unlikelihood of God’s existence and the consistently low level of competence of America’s regulators that she was not immediately zapped between the eyebrows with a thunderbolt upon doing so. Instead, the government sat by and watched as a curious phenomenon developed at all of these new bank-owned warehouses, in the aluminum markets in particular.
Finally, the big picture:
[T]he potential for wide-scale manipulation and/or new financial disasters is only part of the nightmare that this new merger of banking and industry has created. The other, perhaps even darker problem involves the new existential dangers both to the environment and to the stability of the financial system. Long before Goldman and Chase started buying up metals warehouses, for instance, Morgan Stanley had already bought up a substantial empire of physical businesses – electricity plants in a number of states, a firm that trades in heating oil, jet fuels, fertilizers, asphalt, chemicals, pipelines and a global operator of oil tankers.
How long before one of these fully loaded monster ships capsizes, and Morgan Stanley becomes the next BP, not only killing a gazillion birds and sea mammals off some unlucky country’s shores but also taking the financial system down with them, as lawsuits plunge the company into bankruptcy with Lehman-style repercussions? Morgan Stanley’s CEO, James Gorman, even admitted how risky his firm’s new acquisitions were last year, when he reportedly told staff that a hypothetical oil spill was “a risk we just can’t take.”
The regulators are almost worse. Remember the 2008 collapse happened when government bodies like the Fed, the Office of the Comptroller of the Currency and the Office of Thrift Supervision – whose entire expertise supposedly revolves around monitoring the safety and soundness of financial companies – somehow missed that half of Wall Street was functionally bankrupt.
Now that many of those financial companies have been bailed out, those same regulators who couldn’t or wouldn’t smell smoke in a raging fire last time around are suddenly in charge of deciding if companies like Morgan Stanley are taking out enough insurance on their oil tankers, or if banks like Goldman Sachs are properly handling their uranium deposits.
“The Fed isn’t the most enthusiastic regulator in the best of times,” says Brown. “And now we’re asking them to take this on?”
Read the full story here (Rolling Stone link), or alternatively for those curious, here is a presentation highlighting all the key aspects of the aluminum price manipulation story by the big banks.

The Number One Reason to Audit the Federal Reserve #AudittheFed

This is just one reason we should Audit the Federal Reserve and its Charter Members: INFLATION!

The banking cartels that run this country are inflating away the purchasing power of your savings, not to mention they pay you next to ZERO interest rate on CDs and savings while they borrow next to ZERO from the Federal Reserve and lend it out at massive profits.  Meanwhile there isn’t enough money for schools, infrastructure projects, or wage increases?

Submitted by Simon Black of Sovereign Man blog,
One of the greatest lies of the modern financial system (and that’s really saying something) is about inflation.
The puppet masters who control the system have managed to convince people that deflation = bad, and inflation = necessary evil.
Perhaps the even bigger lie is that of the actual inflation statistics. They tell us that there’s no inflation… or minimal inflation.
And they tell us that the ‘target’ rate is 2%. Bear in mind that 2% annual inflation means your currency will lose over 75% of its value during the course of your lifetime.
But these figures are massively understated. And you don’t have to look hard for proof.
US postage stamp rates, for example, are set to increase this weekend. They’ve been going up almost every year since 2006.
This weekend, the rate for a one-ounce first class letter will rise to 49c from 46c, a 6.5% increase. And the price to send a postcard will rise from 33c to 34c, a 3.0% increase.
If you take a longer-term view, the price of a postcard back in 1951 was just one cent. This means that the dollar has lost over 97% of its value against postcard shipping rates in the last six decades.
Let’s look at this another way.
According to the US Department of Labor, the average household income in 1950 was $4,237. This means that the average US household could afford to send 423,700 postcards back then.
Today’s median household income is $51,017 (and that’s from a majority of dual-income households). This means the average family in the Land of the Free can now afford to send about 150,050 postcards.
It’s a huge difference. The standard of living denominated in postcards has declined by nearly two-thirds since the 1950s.
Short-term, long-term, the conclusion is the same: Inflation exists.
And any suggestion to the contrary that inflation is ‘good’ or at least a ‘necessary evil’ is simply a lie. It destroys both purchasing power and standard of living.
Rational, thinking people need to be aware of this. If you hold a lot of your savings in a bank denominated in paper currencies like the dollar or euro, you will lose.
And I’d strongly urge you to consider holding at least a portion of your savings in stronger, more stable currencies, or better yet, alternative asset classes that cannot be inflated away by central bankers.
This includes productive real estate, precious metals, or even collectibles.