Friday, December
14th, 2012 | Posted by Dean Henderson
The
Federal Reserve Cartel: Part IV: A Financial Parasite
Excerpted from Chapter 19: Big Oil & Their
Bankers…Part four of a
five-part series)
United World Federalists founder James Warburg’s father was Paul
Warburg, who financed Hitler with help from Brown Brothers Harriman partner
Prescott Bush. [1]
Colonel
Ely Garrison was a close friend of both President Teddy Roosevelt and President
Woodrow Wilson. Garrison wrote in Roosevelt,
Wilson and the Federal Reserve, “Paul Warburg was the man who got
the Federal Reserve Act together after the Aldrich Plan aroused such nationwide
resentment and opposition. The mastermind of both plans was Baron Alfred
Rothschild of London.”
The
Aldrich Plan was hatched at a secret 1910 meeting at JP Morgan’s private resort
on Jekyll Island, SC, between Rockefeller lieutenant Nelson Aldrich and Paul
Warburg of the German Warburg banking dynasty. Aldrich, a New York
congressman, later married into the Rockefeller family. His son Winthrop
Aldrich chaired Chase Manhattan Bank. While the bankers met, Colonel
Edward House, another Rockefeller stooge and close confidant of President
Woodrow Wilson, was busy convincing Wilson of the importance of a private
central bank and the introduction of a national income tax. A member of House’s
staff was British MI6 Permindex insider General Julius Klein. [2]
Wilson
didn’t need much convincing, since he was beholden to copper magnate Cleveland
Dodge, whose namesake Phelps Dodge became one of the biggest mining companies
in the world. Dodge bankrolled Wilson’s political career. Wilson even
wrote his inaugural speech on Dodge’s yacht. [3]
Wilson
was a classmate of both Dodge and Cyrus McCormick at Princeton. Both were
directors at Rockefeller’s National City Bank (now Citigroup). Wilson’s
main focus was on overcoming public distrust of the bankers, which New York
City Mayor John Hylan echoed in 1911 when he argued, “The real menace to our
republic is the invisible government which, like a giant octopus, sprawls its
slimy length over our city, state and nation. At the head is a small
group of banking houses, generally referred to as the international bankers”.
[4]
But
the Eight Families prevailed. In 1913 the Federal Reserve Bank was born,
with Paul Warburg its first Governor. Four years later the US entered
World War I, after a secret society known as the Black Hand assassinated
Archduke Ferdinand and his Hapsburg wife. The Archduke’s friend Count
Czerin later said, “A year before the war he informed me that the Masons had resolved
upon his death.” [5]
That
same year, Bolsheviks overthrew the Hohehzollern monarchy in Russia with help
from Max Warburg and Jacob Schiff, while the Balfour Declaration leading to the
creation of Israel was penned to Zionist Second Lord Rothschild.
In the 1920’s Baron Edmund de Rothschild founded the Palestine
Economics Commission, while Kuhn Loeb’s Manhattan offices helped Rothschild form a network
to smuggle weapons to Zionist death squads bent on seizing Palestinian
lands. General Julius Klein oversaw the operation and headed the US Army
Counterintelligence Corps, which later produced Henry Kissinger. Klein
diverted Marshall Plan aid to Europe to Zionist terror cells in Palestine after
WWII, channeling the funds through the Sonneborn Institute, which was
controlled by Baltimore chemical magnate Rudolph Sonneborn. His wife
Dorothy Schiff is related to the Warburgs. [6]
“The real menace to our republic is the invisible
government which, like a giant octopus, sprawls its slimy length over our city,
state and nation. At the head is a small group of banking houses, generally
referred to as the international bankers”. John Hylan, New York City Mayor,
1911
The Kuhn Loebs came to
Manhattan with the Warburgs. At the same time the Bronfmans came to Canada as
part of the Moses Montefiore Jewish Colonization Committee. The
Montefiores have carried out the dirty work of Genoese nobility since the 13th
Century. The di Spadaforas served that function for the Italian House of
Savoy, which was bankrolled by the Israel Moses Seif family for which Israel is
named. Lord Harold Sebag Montefiore is current head of the Jerusalem
Foundation, the Zionist wing of the Knights of St. John’s Jerusalem. The
Bronfmans (the name means “liquor man” in Yiddish) tied up with Arnold Rothstein,
a product of the Rothschild’s dry goods empire, to found organized crime in New
York City. Rothstein was succeeded by Lucky Luciano, Meyer Lansky, Robert
Vesco and Santos Trafficante. The Bronfmans are intermarried with the
Rothschilds, Loebs and Lamberts. [7]
The year 1917 also saw
the 16th Amendment added to the US Constitution, levying a national income tax,
though it was ratified by only two of the required 36 states. The IRS is
a private corporation registered in Delaware. [8] Four years earlier the
Rockefeller Foundation was launched, to shield family wealth from the new
income tax provisions, while steering public opinion through social
engineering. One of its tentacles was the General Education Board.
In Occasional Letter #1,
the Board states, “In our dreams we have limitless resources and the people
yield themselves with perfect docility to our molding hands. The present
education conventions fade from their minds and, unhampered by tradition, we
will work our own good will upon a grateful and responsive rural folk. We
shall try not to make these people or any of their children into philosophers
or men of learning or men of science…of whom we have ample supply.” [9]
Though most
Americans think of the Federal Reserve as a government institution, it is
privately held by the Eight Families. The Secret Service is employed, not by the
Executive Branch, but by the Federal Reserve. [10]
An exchange between Sen. Edward Kennedy (D-MA) and Fed
Chairman Paul Volcker at Senate hearings in 1982 is instructive. Kennedy
must have thought of his older brother John when he told Volcker that if he
were before the committee as a member of US Treasury things would be much
different. Volcker, puffing on a cigar, responded cavalierly, “That’s
probably true. But I believe it was intentionally designed this way”.
[11] Rep. Lee Hamilton (D-IN) put it to Volcker that, “People realize
that what that board of yours does has a very profound impact on their
pocketbooks, and yet it is a group of people basically inaccessible to them and
unaccountable to them.”
President Wilson spoke
of, “a power so organized, so complete, so pervasive, that they had better not speak
above their breaths when they speak in condemnation of it.” Rep. Charles
Lindberg (D-NY) was more blunt, railing against Wilson’s Federal Reserve Act,
which had cleverly been dubbed the “People’s Bill”. Lindberg declared
that the Act would, “…establish the most gigantic trust on earth…When the
president signs this act, the invisible government by the money power will be
legitimized. The law will create inflation whenever the trusts want
inflation. From now on, depressions will be scientifically created.
The invisible government by the money power, proven to exist by the Money Trust
Investigation, will be legalized. The whole central bank concept was
engineered by the very group it was supposed to strip of power”. [12]
The Fed is made up of
most every bank in the US, but the New York Federal Reserve Bank controls the
Fed by virtue of its enormous capital resources. The true center of power
within the Fed is the Federal Open Market Committee (FOMC), on which only the
NY Fed President holds a permanent voting seat. The FOMC issues
directives on monetary policy which are implemented from the 8th Floor of the
NY Fed, a fortress modeled after the Bank of England. [13]
In the fifth sub-basement
of the 14-story stone hulk lie 10,300 tons of mostly non-US gold, 1/3 of the
world’s gold reserves and by far the largest gold stock in the world. [14]
“When the president signs this act [the Federal Reserve
Act], the invisible government by the money power will be legitimized.” Rep. Charles Lindberg (D-NY)
The world of money is
increasingly computerized. With the introduction by the Eight Families of
complicated financial instruments like derivatives, options, puts and futures;
the volume of inter-bank transactions took a quantum leap. To handle this
the fed built a superhighway eerily known as CHIPS (Clearing Interbank Payment
System), which is based in New York and modeled after Morgan’s Belgium-based
Euro-Clear – also known as The Beast.
When the Fed was created
five New York banks – Citibank, Chase, Chemical Bank, Manufacturers Hanover and
Bankers Trust – held a 43% stake in the New York Fed. By 1983 these same
five banks owned 53% of the NY Fed. By year 2000, the newly merged
Citigroup, JP Morgan Chase and Deutsche Bank combines owned even bigger chunks,
as did the European faction of the Eight Families. Collectively they own
majority stock in every Fortune 500 corporation and do the bulk of stock and
bond trading. In 1955 the above five banks accounted for 15% of all stock
trades. By 1985 they were involved in 85% of all stock transactions. [15]
Still more
powerful are the investment banks which bear the names of many of the Eight
Families. In
1982, while Morgan bankers presided over negotiations between Britain and
Argentina after the Falklands War, President Reagan pushed through SEC Rule
415, which helped consolidate securities underwriting in the hands of six large
investment houses owned by the Eight Families: Goldman Sachs, Merrill Lynch,
Morgan Stanley, Salomon Brothers, First Boston and Lehman Brothers. These
banks further consolidated their power via
the merger mania of 1980s and 1990s.
American Express
swallowed up both Lehman Brothers-Kuhn Loeb, which had merged in 1977, and
Shearson Lehman-Rhoades. The Israel Moses Seif’s Banca de la Svizzera Italiana bought a
7% stake in Lehman Brothers. [16] Salomon Brothers nabbed Philbro from
the South African Oppenheimer family, then bought Smith Barney. All three then
became part of Traveler’s Group, headed by Sandy Weill of the David-Weill
family, which controls Lazard Freres through senior partner Michel
David-Weill. Citibank then bought Travelers to form Citigroup. S.G.
Warburg, of which Oppenheimer’s Chartered Consolidated owns a 9% stake, joined
the old money Banque Paribas,
which merged into Merrill Lynch in 1984. Union Bank of Switzerland
acquired Paine Webber, while Morgan Stanley ate up Dean Witter and purchased
Discover credit card operations from Sears.
Kuhn
Loeb-controlled First Boston merged with Credit Suisse, which had already
absorbed White-Weld, to become CS First Boston – the major player in the dirty
London Eurobond market. Merrill Lynch – merged into Bank of America in
2008 – is the major player on the US side of this trade. Swiss Banking
Corporation merged with London’s biggest investment house S.G. Warburg to
create SBC Warburg, while Warburg became more intertwined with Merrill Lynch
through their 1998 Mercury Assets tie up. The Warburg’s formed another
venture with Union Bank of Switzerland, creating powerhouse UBS Warburg.
Deutsche Bank bought Banker’s Trust and Alex Brown to briefly become the
world’s largest bank with $882 billion in assets. With repeal of
Glass-Steagal, the line between commercial, investment and private banking
disappeared.
This handful of
investment banks exerts an enormous amount of control over the global
economy. Their activities include advising Third World debt negotiations,
handling mergers and breakups, creating companies to fill a perceived economic
void through the launching of initial public stock offerings (IPOs),
underwriting all stocks, underwriting all corporate and government bond
issuance, and pulling the bandwagon down the road of privatization and
globalization of the world economy.
A recent president of the
World Bank was James Wolfensohn of Salomon Smith Barney. Merrill Lynch
had $435 billion in assets in 1994, before the merger frenzy had really even
gotten under way. The biggest commercial bank at the time, Citibank,
could claim only $249 billion in assets.
In 1991 Merrill
Lynch handled 26.8% of all global bank mergers. Morgan Stanley did 16.8%,
Goldman Sachs 16.3%, Lehman Brothers 16.1% and Credit Suisse First Boston
14.5%. Morgan Stanley did $60 billion in corporate mergers in 1989.
By 2007, reflecting the repeal of Glass-Steagel, the top ten NMA advisers in
order were: Goldman Sachs, Morgan Stanley, Citigroup, JP Morgan Chase, Lehman
Brothers, Merrill Lynch, UBS Warburg, Credit Suisse, Deutsche Bank and Lazard.
In the IPO stock underwriting field for 1991 the top four were Goldman Sachs,
Merrill Lynch, Morgan Stanley and CS First Boston. In the arena of global
privatization for years 1985-1995, Goldman Sachs led the way doing $13.3
billion worth of deals. UBS Warburg did $8.2 billion, BNP Paribas $6.8 billion, CS First Boston
$4.9 billion and Paribas-owner
Merrill Lynch $4.4 billion. [17]
In 2006 BNP Paribas bought the notorious Banca Nacionale de Lavoro (BNL), which
led the charge in arming Saddam Hussein. According to Global Finance, it is now the world’s
largest bank with nearly $3 trillion in assets.
The leading US debt
underwriters for the first nine months of 1995 bore the same familiar
names. Merrill Lynch underwrote $74.2 billion in the US debt markets, or
15.3% of the total. Lehman Brothers handled $52.5 billion, Morgan Stanley
$47.4 billion, Salomon Smith Barney $45.6 billion. CS First Boston, Chase
Manhattan and Goldman Sachs rounded out the top seven. The top three
municipal debt underwriters that year were Goldman Sachs, Merrill Lynch and UBS
Paine Webber. In the euro-market the top four underwriters in 1995 were
UBS Warburg, Merrill Lynch, Deutsche Bank and Goldman Sachs. [18] Deutsche
Bank’s Morgan Grenfell branch engineered the corporate takeover binge in
Europe.
The dominant players in
the oil futures markets at both the New York Mercantile Exchange and the London
Petroleum Exchange are Morgan Stanley Dean Witter, Goldman Sachs (through its
J. Aron & Company subsidiary), Citigroup (through its Philbro unit) and
Deutsche Bank (through its Banker’s Trust acquisition). In 2002 Enron
Online was auctioned off by a bankruptcy court to UBS Warburg for $0. UBS
was to share monopoly Enron Online profits with Lehman Brothers after the first
two years of the deal. [19] With Lehman’s 2008 demise, its new owner Barclays
will get their cut.
“In our dreams we have limitless resources and the
people yield themselves with perfect docility to our molding hands.” Occasional Letter #1, General
Education Board, Rockefeller Foundation, 1913
Following the Lehman
Brothers fiasco and the ensuing financial meltdown of 2008, the Four Horsemen
of Banking got even bigger. For pennies on the dollar, JP Morgan Chase was
handed Bear Stearns and Washington Mutual. Bank of America commandeered Merrill
Lynch and Countrywide. And Wells Fargo seized control over the reeling #5 US
bank Wachovia. Barclays got a sweetheart deal for the remains of Lehman
Brothers.
Former House Banking
Committee Chairman Wright Patman (D-TX), declared of Federal Reserve Eight
Families owners, “The United States today has in effect two governments.
We are 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”.
[20]
Since the creation of the
Federal Reserve, US debt (mostly owed to the Eight Families) has skyrocketed
from $1 billion to nearly $14 trillion today. This far surpasses the
total of all Third World country debt combined, debt which is mostly owed to
these same Eight Families, who own most all the world’s central banks.
As Sen. Barry Goldwater
(R-AZ) pointed out, “International bankers make money by extending credit to
governments. The greater the debt of the political state, the larger the
interest returned to lenders. The national banks of Europe are (also)
owned and controlled by private interests. We recognize in a hazy sort of
way that the Rothschilds and the Warburgs of Europe and the houses of JP
Morgan, Kuhn Loeb & Co., Schiff, Lehman and Rockefeller possess and control
vast wealth. How they acquire this vast financial power and employ it is
a mystery to most of us.” [21]
Footnotes:
Behold
a Pale Horse. William Cooper. Light
Technology Press. Sedona, AZ. 1991. p.81
Dope
Inc.: The Book that Drove Kissinger Crazy.
The Editors of Executive
Intelligence Review. Washington, DC. 1992.
Democracy
for the Few. Michael Parenti. St. Martin’s
Press. New York. 1977. p.67
Descent
into Slavery. Des Griffin. Emissary
Publications. Pasadena 1991
The Robot’s Rebellion: The Story of the Spiritual
Renaissance. David Icke. Gateway Books. Bath, UK. 1994. p.158
The Editors
of Executive Intelligence Review.
p.504
· Ibid
· Ibid
· Ibid. p.77
· “Secrets of the Federal Reserve”. Discovery
Channel. January 2002
· The
Confidence Game: How Un-Elected Central Bankers are Governing the Changed World
Economy. Steven Solomon. Simon & Schuster. New York. 1995. p.26
· Icke. p.178
· Solomon. p.63
· Ibid. p.27
· The
Corporate Reapers: The Book of Agribusiness.A.V. Krebs. Essential
Books. Washington, DC. 1992. p.166
· The Editors of Executive Intelligence Review. p.79
· “Playing the Middle”. Anita Raghavan and
Bridget O’Brian. Wall Street Journal.
10-2-95
· Securities Data Corporation. 1995
· CNN Headline News. 1-11-02
· The
Rockefeller File. Gary Allen. ’76 Press. Seal Beach, CA. 1977.
p.156
· Rule by
Secrecy: The Hidden History that Connects the Trilateral Commission, the
Freemasons and the Great Pyramids. Jim Marrs. HarperCollins
Publishers. New York. 2000. p.77
Dean Henderson is the author of Big Oil & Their Bankers in the Persian Gulf: Four Horsemen,
Eight Families & Their Global Intelligence, Narcotics & Terror Network,
The Grateful Unrich: Revolution in 50 Countries
and Das Kartell der Federal Reserve. Subscriptions
to his Left Hook blog
are FREE at www.deanhenderson.wordpress.com
