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#Post#: 2136--------------------------------------------------
World Bank and IMF destroy economies or modern day slavery
By: Firestarter Date: November 11, 2018, 12:33 pm
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I’ve found a good book by William Engdahl that explains a lot of
things that have happened from the end of the 19th century till
the beginning of the 20th century, including information on the
IMF…
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--
[B]Iran oil, the Ottoman Empire – WW I[/B]
In the 1870s, the German Reich stopped playing according to the
British model for economic destruction. This made Germany a
threat. From 1850 to in 1913, German total domestic output
increased fivefold and the per capita output increased by 250%.
Between 1871 and 1913, the German population saw a steady
increase in its living standard.
After the report by the Koch commission, the Reichstag in
June/July 1896 approved legislation that restricted financial
speculation.
For most of the 19th century England dominated the seas. The
emergence of Germany as a preeminent modern shipping nation, was
threatening the British domination of the seas.
In 1882, the black heavy sludge we today know as petroleum “rock
oil” had little commercial interest other than as fuel to light
the new mineral oil lamps.
Britain’s Admiral Lord Fisher was one of the first to conclude
that Britain must convert its naval fleet to the new oil fuel.
He argued that oil power would allow Britain to maintain
decisive strategic advantage in future control of the seas.
By 1905, British intelligence and the British government had
finally realised the strategic importance of oil but had no oil
of its own. Fisher was ordered to establish a committee to
“[I]consider and make recommendations as to how the British navy
shall secure its oil supplies[/I].
In 1889, a group of German industrialists and bankers, led by
Deutsche Bank, secured a concession from the Ottoman government
to build a railway through Anatolia from the capitol,
Constantinople. In 1899, the Ottoman government agreed that the
German group could continue with the next stage of the
Berlin–Baghdad railway project.
Germany was also becoming a close ally of France, but then the
Dreyfus affair was staged to sabotage the relationship between
Germany and France.
[I]For information on the Dreyfus affair:
HTML https://www.lawfulpath.com/forum/viewtopic.php?f=31&t=1415[/I]
For Britain this was a huge threat to their world dominance. It
would also cut Russia off from her western friends, Great
Britain and France. It is not surprising to find enormous unrest
and wars throughout the Balkans in the decade before 1914,
including the Turkish War, the Bulgarian War and continuous
unrest in the region.
[I]For information on how the mass murdering “Young Turks”
freemasons destroyed the Ottoman Empire:
HTML https://www.lawfulpath.com/forum/viewtopic.php?f=7&t=1107[/I]
In 1901, the Shah of Persia (Iran) granted the Australian
William Knox d’Arcy by royal decree a monopoly for 60 years, to
probe, pierce and drill in the Persian soil for an amount equal
to some $20,000 cash and the Shah received a 16% royalty from
the sales of the petroleum.
In 1905, British “spy ace” Sidney Reilly persuaded d’Arcy to
sign over his exclusive rights to Persian oil with the
Anglo-Persian Oil Company. Scottish financier Lord Strathcona
was used as a front man by the British government as the
majority shareholder of Anglo-Persian, while the government’s
stake was kept secret.
By 1902 it was known that the Mesopotamia region (today Iraq and
Kuwait) of the Ottoman Empire contained resources of petroleum.
In 1899, the British government offered “protection” to the
Sheikh Mubarak al-Sabah of Kuwait.
[IMG]
HTML https://archive.is/CDE48/0a09ba774f29dd8abbc784893b66a99f893261d7[/img]
By 1912, German industry and government had realised that oil
was the fuel of the future. At that time, Standard Oil’s
Deutsche Petroleums Verkaufgesellschaft (of Rockefeller)
controlled 91% of all German oil sales.
In 1911, the young Winston Churchill succeeded Lord Fisher as
First Lord of the Admiralty. Churchill used Fisher’s arguments
to campaign for an oil-fired navy.
In 1913, the British government secretly bought a majority stake
in Anglo-Persian Oil (today British Petroleum).
On 3 August 1914, Germany declared war on France, and German
troops entered Belgium en route to attack France; on August 4,
Britain declared war against Germany.
When WW I erupted, Britain was effectively bankrupt, according
to a letter from Sir George Paish to Lloyd George dated 1 August
1914: [quote]The credit system upon which the business of this
country is formed, has completely broken down, and it is of
supreme importance that steps should be taken to repair the
mischief without delay; otherwise, we cannot hope to finance a
great war if, at its very commencement, our greatest houses are
forced into bankruptcy.[/quote]
Britain’s secret weapon was the special relationship with the
Wall Street banking house of J.P. Morgan & Co.
By January 1915, 4 months into the Great War, the British
government had named J.P. Morgan & Co. as its exclusive
purchasing agent for all war supplies from the US. As purchasing
agent alone, Morgan took a 2% commission on the net price of all
goods shipped. By 1917, the British War Office had placed
purchase orders totalling more than $20 billion through the
house of Morgan.
It became a giant credit pyramid on top of which sat the house
of Morgan. Firms such as DuPont Chemicals grew into
multinational giants by their ties to Morgan. Remington and
Winchester arms companies were also Morgan “friends”.’
Had President Woodrow Wilson not signed the Federal Reserve Act
into law on 23 December 1913, it is questionable whether the US
could have committed the resources it did to a war in Europe. In
August 1914, the house of Morgan and the City of London shaped
the US Federal Reserve System in the months just before outbreak
of the Great War.
In August 1917, the Federal Reserve mobilised sales of Liberty
Loans and bonds, to finance US government war costs. By 30 June
1919, these Liberty Loans and bonds totalled the breathtaking
sum of $21.5 billion.
Morgan & Co. quietly shifted their private British government
loans over to the general debt of the US Treasury when the US
officially entered the war, making the British debts the burden
of the American taxpayers after the war. But, in a great example
of justice, Morgan had a major stake in the post-war Versailles
reparations financing.
At the time of the Versailles peace conference in 1919, Britain
owed the US $4.7 billion in war debts, while its own domestic
economy was in a deep post-war depression, its industry in
shambles, and domestic price inflation 300% higher after the 4
years of war.
The British national debt had increased more than nine fold,
between 1913 and the end of the war in 1918, to the
then-enormous sum of £7.4 billion.
During WW I, Sir Mark Sykes made a deal with French negotiator
Georges Picot (the Sykes–Picot accord), under which Britain
would get control over “Area B”, from what today is Jordan, east
to most of Iraq and Kuwait, the ports of Haifa and Acre, and the
rights to build a railway from Haifa through the French zone to
Baghdad.
France got control over “Area A”: Greater Syria (Syria and
Lebanon), including Aleppo, Hama, Homs and Damascus, the
oil-rich Mosul to the northeast, including the oil concessions
then held by Deutsche Bank in the Turkish Petroleum
Gesellschaft.
After 1918, Britain maintained almost a million soldiers
stationed in the Middle East. By 1919, the Persian Gulf had
become a “British Lake”.
In 1920, Morgan partner Thomas W. Lamont noted with satisfaction
that, as a result of WW I, “[I]the national debts of the world
have increased by $210,000,000,000 or about 475 per cent in the
last six years, and as a natural consequence, the variety of
government bonds and the number of investors in them have been
greatly multiplied[/I]”.
WW I was planned and succeeded in reallocating the raw materials
and physical wealth of the entire world, especially the areas of
the Ottoman Empire with significant petroleum reserves. In 1912,
Britain commanded only 12% of world oil production through
British companies. By 1925, she controlled the major part of the
world’s future supplies of petroleum.
The newly carved Middle East boundaries were dominated by
British government interests through Britain’s covert ownership
of Royal Dutch Shell and the Anglo-Persian Oil Company.
[I]Engdahl systematically claims that the Anglo-Dutch Shell is
controlled by Britain. I have read that Queen Wilhelmina was
“the richest woman in the world” at that time and the majority
shareholder in Shell and Shell chairman Deterding was a Dutchman
- I’m not convinced by Engdahl on this...[/I]
[B]The Round Table, RIIA, CFR[/B]
The Round Table, founded in 1910, was anti-German and
pro-Empire. Instead of the costly military occupation of the
colonies of the British Empire, they argued for a repressive
tolerance, calling for the creation of a British “Commonwealth
of Nations”. Member nations were given the illusion of
independence, enabling Britain to reduce the high costs of
far-flung armies.
The Round Table included such notables as Foreign Secretary
Albert Lord Grey, British secret agent Arnold Toynbee, and H.G.
Wells.
The Round Table’s think tank, which was formed by Lionel Curtis
in Versailles in May 1919, became the Royal Institute for
International Affairs (Chatham House). The RIIA received an
initial endowment of £2,000 from Thomas Lamont of J.P. Morgan.
The same circle at Versailles also decided to establish an
American branch of the London Institute, to be named the New
York Council on Foreign Relations (CFR); initially composed
almost entirely of Morgan men and financed by Morgan.
[B]Treaty of Versailles – 1920s[/B]
Wall Street lawyer John Foster Dulles had authored the infamous
German “war guilt” clause Article 231 of the Versailles Treaty.
John Foster Dulles calculated that Britain and the other Allied
powers owed the US $12.5 billion at 5% interest. Britain,
France, and the other Entente countries, in turn, were owed by
Germany, according to the Versailles demands, the sum of $33
billion!
The figures were beyond the scale of imagination at that time.
The sum, 132 billion gold marks, was finally decided in May
1921.
Since Versailles, the Reichsbank printed money to cover the
state deficits, inflation was rising and Versailles had stripped
Germany of her most vital economic resources. All her valuable
colonies, her entire merchant fleet, a fifth of her river
transport fleet, a quarter of her fishing fleet, 5,000
locomotives, 150,000 railroad cars and 5,000 motor trucks were
taken by the Allied powers (most of it by Britain).
The French were given the 25% share of the Deutsche Bank in the
old Turkish Petroleum Gesellschaft by Versailles.
The remaining 75% of the huge Mesopotamian oil concession was
directly in the hands of the Anglo-Persian Oil Company and Royal
Dutch Shell.
Henri Deterding’s Royal Dutch Shell had an iron grip on the oil
concessions of the Dutch East Indies, Persia, Mesopotamia (Iraq)
and most of the Middle East.
The Sinclair Refining Company, with son of the former president
Theodore Roosevelt Jr. on its board and his brother, Archibald
Roosevelt, aas vice president of Sinclair Oil, secured the
prised Baku oil concession (from under the nose of Royal Dutch
Shell). William Boyce Thompson, director of Rockefeller’s Chase
Bank in New York, was also on Sinclair’s board.
But then suddenly in April 1922, the Teapot Dome scandal
erupted, implicating Sinclair, Fall, and even President Harding.
Within a year Harding himself had died under strange
circumstances. The Coolidge presidency dropped Sinclair and the
Baku project, and plans to recognise the Soviet Union.
In 1922, Walther Rathenau was making a deal with the communist
Soviet Union that in return for leniency on the war reparations
claims on Germany, Germany would sell industrial technology to
the Soviet Union.
Within 2 days of its formal announcement, on 18 April at Genoa,
the German delegation was presented with an Allied note of
protest that Germany had negotiated the Russian accord “behind
the backs” of the Reparations Committee.
On 22 June 1922 (something numeric 6/22/’22?), Walther Rathenau
was assassinated. Following the murder of Rathenau, the gold
mark rate by July 1922 plunged to 493 Marks per US dollar, by
December, the Mark had fallen to 7,592 to the dollar.
Then, in January 1923, the Reparations Committee voted 3 to 1
that Germany was in default of her reparations payments. On
January 11, Poincaré ordered the military forces of France, with
participation from Belgium and Italy, to occupy German
industrial Ruhr by force. It took until the end of 1923 for
French troops and engineers to bring production in the Ruhr to
even a third of the former level of 1922.
In a smart move Britain had formally opposed France, Belgium and
even the newly installed Mussolini government of Italy (!).
Germany ceased all reparation payments to France, Belgium and
Italy for the duration of the occupation, but maintained its
payments and deliveries to Britain.
Directly after the Ruhr occupation, in January, the Mark dropped
to 18,000 to the dollar; by July, the Mark had collapsed to
353,000 per dollar; in August, 1 Mark was worth $4.6 million; on
15 November 1922, the Mark was at 4.2 trillion per dollar. The
savings of the entire population were destroyed.
In October 1923, US secretary of state Charles Evans Hughes,
former chief counsel to Rockefeller’s Standard Oil, recommended
a new scheme to President Calvin Coolidge to continue the
reparations pyramid of debt collection which had been shaken
since the April 1922 Rapallo shock. On 1 September 1924, the
Dawes reparations plan formally began.
Under the Dawes Plan, Germany paid reparations for 5 years,
until 1929. At the end of 1929, she owed more than at the
beginning.
With their risk thus all but nil, the London and New York banks
began a vastly profitable lending to Germany, money which was
recycled back to the banks of New York and London in the form of
reparations with commission and interest. It was a vast
international credit pyramid at the top of which sat New York
and ultimately the City of London.
[B]The seven sisters oil cartel[/B]
In 1927/1928, a peace agreement was signed between the major
Anglo-American oil corporations at the Scottish castle of
Shell’s Henri Deterding - the “As Is” or Achnacarry agreement.
John Cadman for the Anglo-Persian Oil Co. and Walter Teagle
president of Rockefeller’s Standard Oil were also present.
British and American oil majors agreed to accept the existing
market divisions, end destructive competition, and to set a
secret world cartel price.
By 1932, all 7 major Anglo-American companies “The Seven
Sisters” had joined the Achnacarry cartel — Esso; Mobil; Gulf
Oil; Texaco; Standard of California; Royal Dutch Shell; and
Anglo-Persian Oil Co.
[B]Wall Street crash, Montagu Norman, Creditanstalt – WW II[/B]
In 1929, governor of the Bank of England Montagu Norman asked
the governor of the New York Federal Reserve Bank, George
Harrison, to raise U.S. interest rate levels. This later caused
the Wall Street stock market crash in October 1929.
In 1931, France ordered its banks to cut short-term credit lines
to Creditanstalt, following rumours of a run on the deposits of
Creditanstalt (owned by the Rothschild family) broke in the
Vienna press, in May 1931, this toppled the fragile
Creditanstalt and a credit crisis shook all of Europe.
The man who controlled US monetary policy at the time, former
Morgan banker Benjamin Strong, an intimate personal friend of
Britain’s Montagu Norman, met with Volpi and the Bank of Italy
governor, Bonaldo Stringher, to dictate the Italian
“stabilisation” program. The ensuing banking crisis, economic
depression and the tragic developments in Austria and Germany
were dictated virtually to the letter by Montagu Norman of the
Bank of England, the governor of the New York Federal Reserve,
George Harrison, and the house of Morgan and friends in Wall
Street.
Capital began to flow out of Germany in ever greater amounts. On
the demand of Montagu Norman and George Harrison, the new
Reichsbank President Hans Luther imposed rigorous credit
austerity and tightening in the German capital markets to let
the collapse of the large German banks continue.
By July 1931, some 2 months after the collapse of the Vienna
Creditanstalt, the Basle Nationalzeitung reported that the
Danat-Bank was “in difficulties”, which caused a full panic run
so it also collapsed.
After their first meeting in 1924 until Norman’s death in 1945,
Hjalmar Schacht and governor of the Bank of England Montagu
Norman were close friends.
In 1931, the German Alfred Rosenberg travelled to Britain to
meet the editor in chief of the influential London Times,
Geoffrey Dawson, that gave Hitler invaluable positive publicity.
More important were his meetings with Montagu Norman and Henri
Deterding. The introduction to Norman came from Hjalmar Schacht.
The final London visit of Alfred Rosenberg was in May 1933, he
went directly to the country home in Ascot of chairman of Shell
“Sir” Henri Deterding, arguably the world’s most influential
businessman. Royal Dutch Shell secretly had intimate contact
with, and provided support to the German Nazis.
In early 1933, Montagu Norman quickly strengthened the Hitler
government with vital Bank of England credit. Norman also
visited to Berlin in May 1934 to arrange further secret
financial stabilisation for the Nazi regime. Hitler made
Norman’s friend Schacht both his minister of economics and
president of the Reichsbank.
[I]For more on who brought Adolf Hitler to power in Germany:
HTML https://www.lawfulpath.com/forum/viewtopic.php?f=7&t=1340[/I]
[B]Iran 1941-1954 - Mossadegh and the Shah[/B]
Britain, through its Anglo-Iranian Oil Company, retained a
stranglehold on Iran throughout the first half of the 20th
century.
During the Second World War, Stalin’s Soviet Union assisted
Britain to invade Iran. A month after British and Russian forces
occupied Iran in August 1941, the Shah abdicated in favour of
his son, Mohammed Reza Pahlevi, who was disposed to accommodate
the Anglo-Russian occupation.
Tens of thousands of Iranians died of hunger while 100,000
Russian and 70,000 British and Indian troops were given priority
in supplies.
General M. Norman Schwarzkopf (father of the commander of the US
forces in the 1990–91 Desert Storm) trained Iranian national
police force during a six-year period, until 1948.
Russia was granted an exclusive oil concession in the northern
part of Iran bordering Azerbaijan, while Royal Dutch Shell got
another concession. In the midst of selling Iran to the oil
vultures, in December 1944 the Iranian leader, Dr. Mohammed
Mossadegh, introduced a bill in the Iranian parliament which
would prohibit oil negotiations with foreign countries.
The resolution passed, but it didn’t decide on the concession of
the Anglo-Iranian Oil Company in southern Iran, from all the way
back in 1901.
In 1947, the government of Iran suggested that the original
concession must be changed according to the principles of
justice and fairness, so that the Anglo-Iranian Oil Co. would
increase the share paid to the government of Iran that was only
8%. Britain flatly refused to meet Iran even half way.
In April 1951, Mossadegh became prime minister and his
nationalisation plan was finally approved by the Majlis on 28
April 1951. Britain promptly threatened retaliation and within
days British naval forces arrived near Abadan. In September
1951, Britain declared full economic sanctions against Iran,
including an embargo against Iranian oil shipments as well as a
freeze of Iranian assets in British banks. The British embargo
was joined by all the major Anglo-American oil companies.
Prospective buyers of nationalised Iranian oil were warned that
they would face legal action on the grounds that a compensation
agreement had not yet been signed with Anglo-Iranian Oil Co.
Iran oil revenues, plummeted from $400 million in 1950 to less
than $2 million between July 1951 and the fall of Mossadegh in
August 1953. Britain brought the case be brought before the
World Court for arbitration, but Mossadegh, himself a lawyer,
argued his case successfully, and on 22 July 1952 the Court
denied Britain jurisdiction.
In May 1953, US President Dwight Eisenhower, turned down
Mossadegh’s request for economic aid, on advice of his secretary
of state John Foster Dulles and CIA director Allen Dulles. On
August 10, Allen Dulles met with the US ambassador to Tehran,
Loy Henderson, and the Shah’s sister in Switzerland.
In 1953, after a five-year absence, Gen. Norman Schwarzkopf, Sr.
arrived in Tehran to see “old friends”. He promised army
generals he had earlier trained power after a successful coup
against Mossadegh. Under code name Operation AJAX, the CIA with
British SIS overthrew of Mohammed Mossadegh in August 1953.
The young Reza Shah Pahlevi returned to power, and economic
sanctions were lifted.
In April 1954, the Anglo-American companies, joined by France’s
state-owned CFP, started negotiations with the government of
Iran to secure a 25-year agreement for exploitation of oil on
100,000 square miles of Iranian territory.
British Petroleum (previously named Anglo-Iranian Oil) was given
40% of the old d’Arcy concession; Royal Dutch Shell got 14%; the
major US oil companies divided 40% of the oil between them; and
France’s CFP got 6%.
[B]Enrico Mattei - ENI[/B]
One European company expressed interest in purchasing oil from
Mossadegh’s nationalized oil supply. It was Italy’s Ente
Natzionale Idrocarburi (ENI) of Enrico Mattei that was founded
in February 1953.
In 1955, Mattei successful negotiated a share of the oil of
Egypt’s Sinai Peninsula with Egypt’s new leader, Gamal Abdel
Nasser, which by 1961 had grown into a considerable 2.5 million
tons per year of crude oil.
In August 1957, Mattei made a deal with the Shah - he offered an
unprecedented 75% of total profits to the National Iranian Oil
Company, with ENI (only) 25%. The new joint venture Société
Irano-Italienne des Pétroles (SIRIP), got the 25-year exclusive
right to explore and develop some 8,800 square miles of
promising petroleum prospects in non-allocated regions in Iran.
By 1958, total proceeds from ENI’s Italian natural gas sales
alone topped $75 million per year. Instead of spending precious
Italian dollar reserves on imported oil and coal.
Between 1959 and 1961, gasoline prices in Italy dropped 25%,
which significantly aided Italy’s post-war economic revival.
On 27 October 1962, under suspicious circumstances a private
airplane crashed after taking off from Sicily en route to Milan
killing Enrico Mattei, who was on his way to make deals with
Iran, Egypt and the Soviet Union for oil supply.
He had already signed agreements with Morocco, Sudan, Tanzania,
Ghana, India and Argentina. At the time of his death, Mattei had
been preparing a trip to meet with the president John F.
Kennedy, who was then pressing the US oil companies to reach an
agreement with Mattei.
[B]From Bretton Woods to 1968 - Gold fixed dollar[/B]
The US came out as the “world leader” from WW II.
A little known fact of the 1944 Bretton Woods deal was the
creation of a gold exchange system. Under this system, each
member country’s national currency was connected to the US
dollar. The dollar rate was permanently fixed at $35 per ounce
of gold.
From 1947 on, the Marshall plan was used by Western Europe to
buy oil, supplied primarily by US oil companies, more than 10%
of all Marshall aid. Between 1945 and 1948, they more than
doubled the price of oil from $1.05 per barrel to $2.22 per
barrel.
There were huge differences in the prices, at the time Greece
paid $8.30 per ton for fuel oil, Britain paid only $3.95 per
ton.
In late 1957, the US underwent the first deep post-war economic
recession, which lasted into the mid 1960s.
While Europe was forced to pay excessively high interest rates
to attract US dollars, as the dollar price was fixed, the US
lowered its interest rates. Investors grabbed up “cheap”
industrial companies in Western Europe, South America or Asia
for higher profits abroad, as dollars flowed out of the US.
From 1957 to 1965, US annual net capital export into Western
Europe mushroomed from less than $25 billion to more than $47
billion. Between 1962 and 1965, US corporations earned 12 to 14%
on their investments in Western Europe.
JFK proposed a new bill to impose a tax of up to 15% on American
capital invested abroad. When it finally passed in September
1964, they had made a seemingly innocent amendment, which
exempted one country — British colony Canada! Montreal and
Toronto thereby became the centres for an enormous loophole
which ensured that the US dollar outflow continued, through
London-controlled financial institutions.
Bank loans made by foreign branches of US banks to foreign
residents were also exempt from the new US tax. So US banks
quickly established branches in London and other major cities
across the globe.
The City of London attracted the world’s financial flows with
highest interest rates of any major industrial nation throughout
the mid 1960s.
In 1961, the US, Britain, France, Germany, Italy, Holland,
Belgium, Sweden, Canada and Japan agreed to pool reserves in a
special fund, the gold pool, to be administered in London by the
Bank of England. The US Federal Reserve contributed only half
the costs of continuing to maintain the world price of gold at
the artificially low $35 per ounce price of 1934.
Financial speculators by the second half of 1967 were selling
pounds and buying dollars to buy commercial gold in all possible
markets from Frankfurt to Pretoria, sparking a steep rise in the
market price of gold, in contrast to the $35 per ounce official
US dollar price.
It appeared that even 80 tons of sold gold on the London market
wasn’t enough to keep the fixed dollar price of Bretton Woods
intact. On 18 November 1967, Britain announced a 14% devaluation
of the pound from $2.80 to $2.40, the first devaluation since
1949. Once the pound had been devalued, speculative pressures
immediately turned to the US dollar. International holders of
dollars went to the gold discount window at the New York Federal
Reserve and demanded their rightful gold in exchange.
The market price of gold rose even further. By the end 1967,
Washington’s gold stock had declined another $1 billion to only
$12 billion.
In January 1967, French president De Gaulle’s principal economic
adviser, Jacques Rueff, came to London to propose raising the
official price of gold. The US and Britain refused to hear such
arguments, which would have meant a de facto devaluation of
their currencies. The US and British press, led by the London
Economist, attacked the French policy.
On 31 January 1967, a new law came into effect in France which
allowed unlimited convertibility for the French franc.
Then France withdrew from the Group of Ten gold pool. France
immediately became the target of riots, first by leftist
students in Strasbourg, soon followed by students all over
France. In coordination with the political unrest, US and
British investment houses started a panic run on the French
franc, cashing in francs for gold, draining the French gold
reserves by almost 30% by the end of 1968.
Within a year, De Gaulle was out of office and France wasn’t a
threat anymore.
In April 1968, a special meeting of the Group of Ten was
convened in Stockholm where US officials unveiled the new “paper
gold” substitute plan through the IMF, the so-called Special
Drawing Rights (SDRs).
[B]The oil inflation of 1973 – creating the petrodollar[/B]
In 1969, the US economy was again in a recession. In 1970, US
interest rates were sharply lowered. As a consequence,
speculative “hot money” sought higher short-term profits in
Europe and elsewhere. As interest rates continued to drop, these
outflows reached huge dimensions, totalling $20 billion.
In May 1971, the US recorded its first monthly trade deficit,
triggering a virtually international panic sell-off of the US
dollar.
On 15 August 1971, President Nixon formally suspended dollar
convertibility into gold, effectively putting the world fully
onto a dollar standard with no backing. The US also formally
devalued the dollar a mere 8% to $38 per fine ounce gold.
The real architects of the Nixon strategy were the influential
City of London merchant banksters, including: Edmond de
Rothschild, Sir Siegmund Warburg, and Jocelyn Hambro, who saw a
“golden” opportunity in Nixon’s dissolution of the Bretton Woods
gold standard.
In 1972, the massive capital outflows of dollars to Japan and
Europe continued. In 12 February 1973, Nixon announced a second
devaluation of the dollar, of another 10% to $42.22 per ounce
(where it remains to this day).
Between February and March 1973, the value of the US dollar
against the German Deutschmark dropped another 40%.
In May 1973, the Bilderberg Group met at Saltsjöbaden, Sweden,
the secluded island resort of the Swedish Wallenberg banking
family. At his meeting of 84 high ranking members of
international crime, Walter Levy outlined a ‘scenario’ for a
drastic increase in OPEC petroleum revenues. He projected an
OPEC Middle East oil revenue rise.
See 2 excerpts from the confidential protocol of the 1973
meeting of the Bilderberg group in Sweden. There was discussion
about the danger that “[I]inadequate control of the financial
resources of the oil producing countries could completely
disorganize and undermine the world monetary system[/I]”.
The second excerpt speaks of “[I]huge increases of imports from
the Middle East. The cost of these imports would rise
tremendously[/I]”.
[IMG]
HTML https://truththeory.com/wp-content/uploads/2012/08/bilderberg-1973-2.png[/img]
The purpose was not to prevent the oil price shock, but plan it
in a process that US Secretary of State Kissinger later called
“recycling the petrodollar flows”. Since 1945, world oil had
been priced in dollars. A sudden sharp increase in the price of
oil, therefore meant an equal increase in world demand for US
dollars to pay for that necessary oil.
Bilderberg policy used a global oil embargo, to create a 400%
increase in world oil prices. On 6 October 1973, Egypt and Syria
invaded Israel, igniting the Yom Kippur War.
The events surrounding the outbreak of the October War were
secretly orchestrated by Washington and London, using the
powerful secret diplomatic channels developed by Nixon’s
national security adviser, Henry Kissinger. US intelligence
reports, including intercepted communications from Arab
officials confirming the build-up for war, were suppressed by
Kissinger.
Washington didn’t permit Germany to remain neutral in the Middle
East conflict, but hypocritical Britain clearly stated its
neutrality, so avoided the Arab oil embargo.
On October 16, the Arab OPEC declared an embargo on all oil
sales to the US and the Netherlands for its support for Israel
and raised the oil price from $3.01 to $5.11 per barrel (+70%).
Following a meeting in Teheran on 1 January 1974, a second price
increase of more than 100% brought OPEC benchmark oil prices to
$11.65. Henry Kissinger secretly put up to the Shah of Iran to
arrange this.
President Nixon was kept busy with the “Watergate affair”,
leaving Henry Kissinger as de facto president. When in 1974 the
Nixon White House sent a senior official to the US Treasury in
order to devise a strategy to force OPEC into lowering the oil
price, he was bluntly turned away.
In August 1971, Nixon had established a secret accord with the
Saudi Arabian Monetary Agency (SAMA) that was finalised in
February 1975. Under the terms of the agreement, a sizeable part
of the huge rise in Saudi oil revenue would be invested in
financing the US government deficits.
In 1974, 70% of the additional OPEC oil revenue, $57 billion, at
least 60% went directly to financial institutions in the US and
Britain.
The most severe impact of the oil crisis in the US was felt in
New York City. New York was forced to slash spending for
roadways, bridges, hospitals and schools in order to service
their bank debt, and to lay off tens of thousands of city
workers.
Bankruptcies and unemployment across Europe rose to alarming
levels. As Germany’s imported oil costs increased by 17 billion
Deutschmarks in 1974. By June 1974 the oil crisis had resulted
in the collapse of Germany’s Herstatt-Bank and a crisis in the
Deutschmark as a result. It resulted in a million unemployed
Germans.
In May 1974, Willy Brandt offered his resignation to Federal
President Heinemann, who then appointed Helmut Schmidt as
chancellor.
In 1973, India had a positive balance of trade. But in 1974,
India had total foreign exchange reserves of $629 million which
couldn’t pay for the annual oil import bill of 1,241 million.
In 1974, Sudan, Pakistan, the Philippines, Thailand and most
countries in Africa and Latin America faced gaping deficits in
their balance of payments.
In 1974, developing countries had a total trade deficit of $35
billion, 4 times as large as in 1973 (precisely in proportion to
the oil price increase). In the early 1970s, the account deficit
of all developing countries was (only) some $6 billion per year.
The major New York and London banks, and the Seven Sisters oil
multinationals benefitted. In 1974, Exxon overtook General
Motors as the largest US corporation in gross revenues. Her
“sisters”, including Mobil, Texaco, Chevron and Gulf, were not
far behind.
Chase Manhattan, Citibank, Manufacturers Hanover, Bank of
America, Barclays, Lloyds, Midland Bank all enjoyed the windfall
profits of the oil crisis.
In a strange twist, the American David Mulford became director
and principal investment adviser of the SAMA, the largest OPEC
oil producer.
Basically the post-war Bretton Woods gold exchange system was
replaced by the highly unstable petroleum-based dollar exchange
system, the “petrodollar standard”.
The year 1975 witnessed the first major decline in world trade
since the end of the war in 1945, a drop of 6%.
While industrial countries had experienced a slow recovery from
the initial oil shock, the developing economies deteriorated
even further in 1975. In 1976, the account deficit of all
developing countries rose to $42 billion. Private US and
European banks were glad to lend to these countries.
Foreign debts of the developing countries expanded some
five-fold, from $130 billion in 1973, before the first oil
shock, to some $550 billion by 1981, and to over $612 billion by
1982, according to the IMF.
In August 1976, the 85 non-aligned “developing” states countries
tried after the Colombo meeting to fight for “A fair and just
economic development”. The UN was chosen as the arena where the
“developing” countries explained their demands.
Share prices for US banks began to fall, especially those most
involved in Eurodollar lending to the developing countries:
Citicorp, Morgan Guaranty, Bankers Trust and Chase Manhattan.
The Federal Reserve Bank was forced to intervene to support the
falling dollar.
One by one, the advocates of Third World development were
removed from the seats of domestic power. In February 1977, PM
Indira Gandhi of India was forced into elections and was ousted
by March. Sri Lanka paralyzed by a wave of strikes in early
January 1977. By May 1977, Bandaranaike’s ruling Freedom Party
was gone from power. In 1977, Bhutto was overthrown in a
military coup led by General Zia ul-Haq. Before his death by
hanging, Bhutto accused US Secretary of State Henry Kissinger of
being behind his overthrow. On 14 February 1978, in Guyana,
Frederick Willswas forced to resign.
[B]Ayatollah Khomeini – Thatcher economics, the IMF in the
1980s[/B]
In 1975, the CFR, under the direction of New York attorney Cyrus
Vance, drafted a series of policy blueprints for the 1980s. The
CFR called “[I]A degree of “controlled disintegration” in the
world economy is a legitimate objective for the 1980’s[/I]”.
In 1978, the Shah’s government of Iran and British Petroleum
were “negotiating” on the renewal of the 25-year oil extraction
agreement. In October 1978, the talks had collapsed over the
British “offer” that demanded exclusive rights to Iran’s future
oil output.
In November 1978, President Carter named the Bilderberg group’s
George Ball, a member of the Trilateral Commission, to head a
special White House Iran task force under the National Security
Council’s Zbigniew Brzezinski.
Robert Bowie from the CIA was one of the lead “case officers” in
the new CIA-led coup against the Shah that they had placed into
power in 1953. US security advisers to the Shah’s Savak secret
police implemented a policy of ever more brutal repression, to
maximize antipathy against the Shah. At the same time, the
Carter administration began protesting abuses of “human rights”
under the Shah.
The BBC’s Persian-language broadcasts, drummed up hysteria
against the regime in exaggerated reporting of incidents of
protest against the Shah and gave Ayatollah Khomeini a full
propaganda platform inside Iran.
The Shah fled in January 1979, and by February Khomeini had been
flown into Tehran to proclaim the establishment of his
theocratic state.
Iran’s oil exports to the world were suddenly cut off, some 3
million barrels per day. Curiously, Saudi Arabian production in
January 1979 also cut some 2 million barrels per day.
Unusually low reserves of oil held by the “Seven Sisters” oil
multinationals contributed to the oil price shock, with prices
for crude oil soaring from a level of some $14 per barrel in
1978 towards $40 per barrel for some grades of crude on the spot
market. The ensuing energy crisis in the US was a major factor
in bringing about Carter’s defeat in the presidential election a
year later.
Despite the fact that an oil price of $40 per barrel represented
a dramatic increase in dollar terms, the media hysteria over the
“incompetent” Carter administration, led to a further weakening
of the dollar.
Since early 1978, the dollar had already dropped more than 15%
against the German mark and other major currencies. In September
1978, the dollar fell in a near panic collapse when it was
reported that Saudi’s central bank SAMA had begun liquidating
billions of dollars of US treasury bonds.
The oil price shocks in 1973 and 1979, which had raised the
price of the world’s basic energy by 1,300% in 6 years, had
understandably caused inflation.
British PM Margaret Thatcher, insisted that the 18% inflation in
Britain had been caused by government deficit spending,
carefully ignoring the 140% increase in the price of oil since
the fall of Iran’s Shah. In June 1979, a month Thatcher had
become PM, the UK’s chancellor of the exchequer, Sir Geoffrey
Howe, began raising base rates for the banking system a
staggering five percentage points, from 12% to 17%in only 12
weeks. The Bank of England simultaneously began to cut the money
supply, to ensure that interest rates remained high.
Director of the Federal Reserve Paul Volcker followed Britain’s
example to “fix” this inflation by cutting credit to banks,
consumers and the economy. US interest rates on the Eurodollar
market soared from 10% to 16% and 20% in a matter of weeks.
Government spending was savagely cut in order to reduce
“monetary inflation”.
In March 1980, President Carter had signed into law the
“[I]Depository Institutions Deregulation and Monetary Control
Act[/I]” that empowered Volcker’s Federal Reserve to impose
reserve requirements on banks, ensuring that his credit choke
succeeded.
Businesses went bankrupt, families were unable to buy new homes,
long-term investment in power plants, subways, railroads and
other infrastructure came to a grinding a halt. Unemployment in
Britain doubled, from 1.5 million to 3 million in Thatcher’s
first 18 months as Prime Minister.
Inflation was indeed being “squeezed” as the world economy was
plunged into the deepest depression since the 1930s – this was
labelled the “Thatcher revolution”. And the dollar began an
extraordinary 5-year ascent.
The international financial interests of the City of London and
the powerful oil companies, chiefly Shell and British Petroleum,
were the intended beneficiaries. British Petroleum and Royal
Dutch Shell exploited the astronomical price of $36 or more per
barrel for their North Sea oil.
Also exchange controls on the big City banks were removed, so
that instead of capital being invested in rebuilding Britain’s
rotten industry base, funds flowed out to real estate in Hong
Kong or lucrative loans to Latin America
The radical monetarism of Thatcher and Volcker spread like a
cancer. With interest rates of 17-20% any “normal” investment
was simply not profitable.
Six months after Thatcher took office, Ronald Reagan was elected
president of the US, with Vice President George H.W. Bush in
control.
Reagan had been tutored while governor of California by the guru
of monetarism, Milton Friedman. Reagan kept Milton Friedman as
an unofficial adviser on economic policy. His administration was
filled with disciples of Friedman’s radical monetarism,
following the same radical measures earlier imposed by Friedman
to destroy the economy of Chile under Pinochet’s military
dictatorship.
As the average cost of their petroleum imports, rose some 140%
in US dollars, developing countries this time around were faced
with the situation that the dollar itself was also rising
rapidly, because of both the high US interest rates and the
higher oil price.
All Eurodollar loans to these countries were fixed at a
specified premium over and above the given London Inter-Bank
Offered Rate (LIBOR). This LIBOR rate was a “floating” rate,
which rose from an average of 7% in early 1978 to almost 20% in
early 1980.
The creditor banks, following a closed-door meeting in England’s
Ditchley Park that fall, created a creditors’ cartel of leading
banks, headed by the New York and London banks, later called the
Institute for International Finance or the Ditchley Group. The
private banks “socialised” their lending risks to the taxpaying
public, but kept the profits for themselves.
This was an almost exact copy of what the New York bankers did
after 1919 against Germany and the rest of Europe under the
Dawes Plan.
Out of $270 billion loaned by Latin America between 1976 and
1981, only 8.4% actually arrived in the countries. In 1979, a
net sum of $40 billion flowed from the “rich” North to the
“poor” South. In 1983, this flow had reversed with $6 billion
from the “developing” countries to the industrialised countries,
since then the amount has risen steadily, to approximately $30
billion a year.
In August 1982, large Third World debtor nations refused to pay,
but the IMF simply pressured them to sign “debt work-outs” with
the leading private banks, often led by Citicorp or Chase
Manhattan of New York. The IMF “medicine” was invariably the
same: the victim debtor country was told to slash domestic
imports to the bone, cut the national budget, quit state
subsidies for food and other necessities, and devalue the
national currency in order to make its exports “attractive”.
Between 1980 and 1986, a group of 109 debtor countries, paid to
creditors in interest on foreign debts alone $326 billion;
repayment of principal on the same debts totalled another $332
billion. They were paying $658 billion on what originally had
been a debt of $430 billion and on top of that these 109
countries still owed the creditors $882 billion in 1986!
Total foreign debt of the developing countries, rose from just
over $839 billion in 1982 to almost $1,300 billion by 1987.
Virtually all this increase was due to the added burden of
“refinancing” the unpayable old debt.
During the 1980s, the “developing“ nations transferred a total
of $400 billion into the US alone. Capital flight from Third
World countries into the “safe haven” of the US and other
industrialised countries amounted to at least another $123
billion in the decade up to 1985. Large banks, like Citicorp,
Chase Manhattan, Morgan Guaranty and Bank of America, were
bringing in flight capital assets of some $100–120 billion. The
annual return for the New York and London banks on their Latin
American flight capital business, was 70% on average. The very
same “developing” countries were forced into brutal domestic
austerity to “stabilise” the currency.
These profits allowed the Reagan administration to finance the
largest “peacetime” deficits in world history, while falsely
claiming “the world’s longest peacetime recovery”. As exports to
Latin America came to a grinding halt, there was a devastating
loss of US jobs and exports.
President Ronald Reagan in August 1981 signed the largest tax
reduction bill in post-war history. In the summer 1982, Paul
Volcker decreased interest rate levels. This was followed by a
speculative bonanza in real estate, stocks, oil wells in Texas
or Colorado. As the Federal Reserve’s interest rates went lower,
the fever grew hotter. “Cheap” debt was the new fashion. Within
5 years, the US transformed from the world’s largest creditor to
becoming a debtor nation, for the first time since 1914.
While this turned young stock brokers into multimillionaires,
the real living standard for “normal” Americans steadily
decreased, while that of a minority rose as never before.
Families went into record levels of debt for buying houses,
cars, video recorders. Government went into debt to finance the
huge loss of tax revenue and the expanded Reagan defence
build-up.
By 1983, annual government deficits began to climb to an
unheard-of level of $200 billion. The national debt expanded,
along with the deficits, and paying Wall Street bond dealers and
their clients record sums in interest income. Interest payments
on the total debt by the U.S. government almost tripled in 6
years, from $52 billion in 1980, to more than $142 billion by
1986 (equal to one-fifth of all government revenue).
Money kept flowing in from Germany, from Britain, from Holland,
from Japan, to take advantage of the high dollar and the
speculative gains in real estate and stocks on the US markets.
Billions of dollars flowed out of the London-based Eurodollar
banks to the accounts of developing country borrowers without a
“lender of last resort” but the banks didn’t take any risk as
the IMF enforced payment of the usurious debts through the most
draconian austerity in history. The IMF was firmly controlled by
the Anglo-American voting power.
Nationally controlled oil resources could have been the means
for modernising Mexico.
In February 1982, the IMF dictated a series of Mexican peso
devaluations to “spur exports”. By the first 30% devaluation,
the private Mexican industry, which had borrowed dollars to
finance investment, led by the once-powerful Alfa Group of
Monterrey, was made bankrupt overnight.
In early 1982, the peso stood at 12 pesos for a dollar. By 1986,
862 Mexican pesos were needed to buy 1 dollar, and by 1989 the
sum had climbed to 2,300 pesos. But Mexico’s total foreign debt,
grew from some $82 billion to just under $100 billion by the end
of 1985.
British and US multinationals set up child-labour sweatshops
along the Mexican border with the US. These “maquiladores”
employed Mexican children aged 14 or 15 for wages of 50 cents an
hour, to produce goods for General Motors or Ford Motor Company
or various US electrical companies. Of course the IMF agreed
with this child labour!
The same process was repeated in Argentina, Brazil, Peru,
Venezuela, most of black Africa, including Zambia, Zaire and
Egypt, and large parts of Asia.
Until the 1980s, black Africa remained 90% dependent on raw
materials export for financing its development. In the early
1980s, the world dollar price of these raw materials came
tumbling down. By 1987, raw materials prices had fallen to the
lowest levels since the Second World War, about the level of
1932 (when there was also a deep world economic depression).
In 1982, these African countries owed creditor banks in the US,
Europe and Japan some $73 billion. By the end of the 1980s,
through debt “rescheduling” and various IMF interventions, this
had more than doubled, to $160 billion. This was about the sum
these countries would have earned at a stable export price
level.
The incredible high inflation rates during the early part of the
1980s, typically 12–17%, dictated the conditions of investment
returns. A fast and huge gain was needed.
In 1985, the US economic situation threatened the future
presidential ambitions of Vice President George H.W. Bush. This
was reason for a “rescue” mission.
This time Saudi Arabia was used to run a “reverse oil shock” and
flood the world oil market with “cheap” oil. The price of OPEC
oil dropped from an average of nearly $26 to below $10 per
barrel in only a couple of months in the spring of 1986. Wall
Street economists proclaimed the final “victory”, while George
Bush Sr. made a quiet trip to Riyadh in March 1986 to tell King
Fahd that the oil price had gone down enough. Saudi Oil Minister
Sheikh Zaki Yamani was fired for a scapegoat and oil prices
stabilized at the “low” level of around $14–16 per barrel.
Speculation in real estate in the US continued at a record pace,
while the stock market began a renewed climb to record highs.
This 1986 oil-price collapse unleashed what was comparable to
the 1927–29 phase in the US speculative bubble. Interest rates
dropped even more dramatically, as money flowed in to make a
“killing” on the New York stock markets.
A new financial perversion became fashionable on Wall Street,
the ”leveraged buyout”. Boone Pickens with borrowed money -
“junk bonds” - bought controlling stock in companies, like Union
Oil of California, or Gulf Oil, that were many times more worth
than he had. If he succeeded in taking over a huge company with
“borrowed money”, his debt could be repaid, while making a
handsome profit. If the company became bankrupt, his bonds were
just “junk” paper.
During the last half of the 1980s, such actions consumed Wall
Street and pushed the Dow upwards, driving corporations into the
highest levels of debt since the 1930s depression. But this debt
was not undertaken to invest in modern technology or new plant
and equipment.
After President Reagan signed the new Garn–St. Germain Act into
law, he enthusiastically told an audience of invited S&L
bankers, “[I]I think we’ve hit the jackpot[/I]”. The new law
opened the doors of the S&Ls to financial abuses and speculative
risks as never before. It also made S&L banks an ideal vehicle
for “organised crime” to launder billions of dollars from the
booming narcotics business.
Few noticed that it was the former firm of Reagan’s Treasury
secretary Donald Regan, Merrill Lynch, whose Lugano office was
implicated in laundering billions of dollars of heroin profits
in the so-called “pizza connection”.
Life insurance companies, began to speculate in real estate
during the 1980s. By 1989, insurance companies were holding an
estimated $260 billion of real estate on their books, in 1980
this had been $100 billion. Then in late 1980, real estate
collapsed, forcing failures of insurance companies for the first
time in post-war history.
On 19 October 1987, the bubble burst. On that day the Dow Jones
Index collapsed more than in any single day in history, by 508
points. Nakasone pressed the Bank of Japan and the Ministry of
Finance to assist. Japanese interest rates fell lower, and
lower, making US stocks, bonds and real estate appear “cheap” by
comparison. Billions of dollars flowed out of Tokyo into the
United States. During 1988, the dollar remained strong and Bush
was able to secure his election as president. The plan of the
new Bush administration was to direct pressures onto US allies
for “burden sharing” of the huge US debt.
The Thornburgh Doctrine had stipulated that the FBI and Justice
Department had authority to act on foreign territory. President
Bush quickly showed himself to be a “tough guy”, by invading the
tiny Panama, in his first year as President, December 1989.
From 1979, when Paul Volcker had begun his monetary shock, to
1988 the government recorded Americans below the poverty level
went from 24 million to 32 million Americans (an increase of
more than 30%). Costs of American health care, rose to the
highest levels ever, and as a share of GNP, to double that of
the UK.
In the 1980s, the vital public infrastructure of the US
collapsed: highways cracked; bridges became structurally unsound
and even collapsed; in areas like Pittsburgh, water systems
became contaminated; hospitals in major cities fell into
disrepair; housing stock for the less wealthy decayed
dramatically.
Total private and public debt of the US in the 1980s went from
$3,873 billion to $10 trillion by the end of the decade.
Thatcher’s eleven-year as PM of Britain was equally disastrous.
Real estate speculation and the financial services of the City
of London increased enormously, while Thatcher’s economic policy
had severely restricted industrial investment, and modernisation
of the nation’s deteriorating public infrastructure.
William Engdahl – [I]A Century of War; Anglo-American Oil
Politics and the New World Order[/I] (first published in 1992,
but updated since):
HTML http://www.takeoverworld.inf
o/pdf/Engdahl__Century_of_War_book.pdf
----------------------------------------------------------------
--
Understandably there are important events missing from the book
(with “only” 270 pages). I’ve also deleted lots of information,
and even with these omissions this post is “too” long...
Following is a recent interview with William Engdahl (44:33):
HTML https://soundcloud.com/21wire/featured-f-william-engdahl-discusses-financial-warfare
#Post#: 2147--------------------------------------------------
Henry C. Carey – The Slave Trade
By: Firestarter Date: November 12, 2018, 11:13 am
---------------------------------------------------------
[I]In this post an interesting historic book by Henry C. Carey
(1793−1879), born in Philadelphia, on how so-called “free
races” are enslaved. It’s almost a prequel to William Engdahl’s
book
The strange thing is that it’s from 1853 (165 years old) and
most of it is still actual. It really explains why the United
Nations, World Bank and IMF were founded. A lot of it is based
on Adam Smith’s views. While Carey pinpoints a lot of strategies
used against “us”, some of the solutions he presents miss the
mark…[/I]
Under the Spanish system, labour is valuable so slaves continue
to be imported. Under the English one, labour is valueless and
men sell themselves for long years of slavery at the sugar
culture in the Mauritius, Jamaica, and in Guiana.
England is engaged in a war against the labour of all other
countries employed in other activity than raising raw produce to
be sent to England, there to be manufactured into end products
at the factories of her millionaires, who have accumulated their
vast fortunes at the expense of Ireland, India, Portugal,
Turkey, and other countries that have been ruined.
The nation that exports raw produce exhausts its land, and then
it must export its men, leaving women and children to perish.
Cotton is produced in countries like India, Egypt, Brazil, the
West Indies, and the Southern States of the US. It’s then made
into cloth in England and becomes valuable. The trick is to keep
the value of the raw material low and the end product high. In
this way the rich of England become even richer, while the poor
become poorer.
This also shows how deceptive calculations based upon statements
on the value of exports and imports are; that always “prove” the
growing prosperity of England.
If the people of Cuba, Brazil, India, and other countries
produce cloth, iron, and other commodities for which they now
depend on Europe, and thus diminish their need to export, it
would increase the price of their products while making cloth
and iron cheaper. This would make these “third world” countries
more “free”.
Ever since India came under English rule, their condition has
become hopelessly miserable. Cholera became very common.
The Hindu, like the black, is shut out from the workshop. If he
attempts to make cloth, he’s heavily taxed, from which his
wealthy English competitor is exempt. His iron ore and his coal
must remain in the ground, and if he dares to collect the salt
which crystallizes before his door, he is fined and imprisoned.
The sub-renter extorts whatever he thinks the unfortunate
borrower could pay, for example 1% interest a week. In this way,
no matter how large the crop, the poor borrower will never make
a profit.
The very best parts of India were selected for the cultivation
of the poppy. If the people refused, they were forced. The same
company that forced them to grow opium, forced them to sell it
back to them for the price they decided. It was exported to
China. In 1839, the emperor of China finally seized a huge
amount of opium to be destroyed. Then Britain started the “opium
wars”, to force the Chinese to repay them for the destroyed
opium.
Britain calls her opponents “despots”, while the British elite
are the real despots.
Portugal, India, Turkey and Ireland yield to the British system,
become poorer and weaker every year, and their people more
enslaved.
In 1801, the copyright and patent laws of England were extended
to Ireland, and publishing books was stopped. As a result
Ireland couldn’t compete anymore. Irish workers were forced to
go to England looking for a job to pay the rent at home. It is
common to blame the rapid growth of population for the poor
state of Ireland, but in reality this wasn’t the cause.
The Irish went from being land owners, to tenants. The land
passed from many into the hands of the few. In the days of Adam
Smith there were 220,000 English land-owners, in 1853 only
80,000 were left, while all the land of Scotland is accumulated
in the hands of only 6000 people.
In Britain children were sold. Girls brought the highest price;
girls aged 12 to 18 cost $500-800.
The poor enter their children in so-called “burial clubs”. A
small sum is paid every year by the parent, and this entitles
him to receive a larger sum when the child dies. Many parents
enter their children in several clubs. One man in Manchester had
his child in 19 different clubs.
Parents are so miserable that they actually kill their helpless
little offspring to receive the reward from the “burial clubs”.
In 1825, Germany exported almost 30 million pounds of raw wool
to England, where it was subjected to a duty of 12 cents per
pound for the privilege of being manufactured into cloth.
Germany, Russia, Spain, Denmark, Belgium, and some other states,
are trying to protect their farmers. The King of Prussia tries
to strengthen his people by enabling them to find employment,
manure for their farms, and strengthens Germany by the formation
of a great Union, that gives 30 million people the freedom of
internal trade.
In contrast, all the measures of England in India are to enslave
a hundred million. Of course Russia and Germany haven’t bothered
England anymore since the first and second World Wars…
According to Carey, the way to freedom is increasing the value
of labour and land. He proposes to export machines to (for
example) Africa to increase the labour “value” of Africans. I
don’t agree with these ideas…
The additional profits from using machines go to the same elite
that control the manufacture of machines. In the 21th century we
have computer technology that has reduced the value of a human
to an all-time low…
Increasing the value of land, makes the poor: slaves of (the
interest rates of) the banks.
The Hindu sells his cotton for a penny a pound, and buys it back
as cloth at 18-20 pence.
The Virginia slave sells tobacco for 6 shillings' worth of
commodities, of which he and his owner obtain 3 pence.
The poor Irishman raises chickens which sell in London for
shillings, of which he receives a pence.
A pound of sugar which had yielded the “free” black of Jamaica
two pence, exchanges in Ireland for 2 chickens or 12 lobsters.
It would be much better if labour and capital would be locally
applied, reducing exports. The home trade, instead of
import-export would increase prosperity.
Henry C. Carey – [I]The Slave Trade, Domestic and Foreign: why
it exists, and how it may be extinguished[/I] (1853):
HTML https://archive.org/stream/slavetradedomest01care/slavetradedomest01care_djvu.txt
(or the 28 MB PDF:
HTML https://ia800603.us.archive.org/6/items/slavetradedomest01care/slavetradedomest01care.pdf)
#Post#: 2148--------------------------------------------------
Greg Palast - The Best democracy money can buy
By: Firestarter Date: November 12, 2018, 11:16 am
---------------------------------------------------------
This post is a summary of BBC investigative reporter Greg
Palast’s book from 2002.
The strategy to destroy economies is something like: take money
out of circulation to crash the economy, then the big bankers
buy the economy pennies for dollars, while in the meantime the
country has been indebted, and has to do what the World Bank
tells them.
In 1983 the IMF forced Ecuador’s government to borrow $1.5
billion to take over the private debts of Ecuador’s elite. In
return Ecuador had to hike prices in electricity and other
necessities, and eliminate 120,000 jobs. Then in 2000, 2001 to
finish Ecuador off, it was ordered to: 1) raise the price of
cooking gas with 80%, 2) eliminate 26,000 jobs, 3) cut wages
with 50%, 4) transfer its biggest water system to foreign
operators, 5) allow British Petroleum’s ARCO to build an oil
pipeline.
In Bolivia some riots broke out, when Bolivians couldn’t get
drinking water. To “help” Bolivia: Samuel Soria deposited $10
million on a Citibank account in New York, that never returned
to Bolivia. Water prices, could rise with 150% under the new
owner, International Waters Ltd (IWL) of London.
In 2001 Argentina got ordered to cut their government budget
deficit from $5.3 billion to $4.1 billion. Taking 1.2 billion
dollar out of the economy already in recession, did wonders: by
the end of March 2001, Argentina’s Gross Domestic Product (GDP)
had already dropped with 2.1% compared a year earlier. Argentina
had to reduce jobs, wages, and pensions. While the IMF offered
an $8 billion aid package - Argentina had to pay $27 billion a
year because of their debt of $128 billion (to the likes of
Citibank). The French bought the water system and raised prices
up to 400%. And Argentina got threatened with sanctions by the
USA to liberalise the pharmaceuticals industry.
In 1973 General Pinochet took dictatorial control of Chile, and
destroyed the economy. The CIA, since October 1970, had helped
Pinochet to oust president Salvador Allende. US Ambassador to
Chile, Edward Malcolm Korry explained that US companies used the
CIA as an international collection agency. In 1973 Chile’s
unemployment rate was 4.3%; by 1983, after 10 years of free
market liberalisation, unemployment was at 22%, while wages had
declined by 40%. In 1970 20% of Chile’s population lived in
poverty, by 1990 – when dictator Pinochet left office - this
number had doubled to 40%. In 1982 and 1983, the GDP dropped
with 19%, and foreign companies bought 85% of Chile’s profitable
industries. The USA the State Department reported: “Chile is a
casebook study in sound economic management”. The respected
economist Milton Friedman called this “The Miracle of Chile”.
In 1998 —the World Bank, IMF, Inter-American Development Bank
and the International Bank for Settlements — offered $41.5
billion credit to Brazil. The World Bank designed a “Master Plan
for Brazil” to create a “flexible public sector workforce”:
reduce Salary/Benefits; Pensions; Job Stability; Employment, and
increase Work Hours. After the Brazilian real dropped with 40%:
British Gas bought the SaoPaolo Gas Company, while Enron and
Houston Industries bought the Rio and Sao Paolo electricity
companies and a pipeline.
DEREGULATING ELECRICITY
In the 1970s British professor Dr. Stephen Littlechild invented
a scheme to privatise British electricity utilities. In 1990 the
England-Wales Power Pool, went into business.
From Atlanta headquarters, Southern’s executives learned they
could charge in “deregulated” England double the price in
Georgia. In 1995, Southern bought up England’s South Western
Electricity Board. The cash rolled in and American companies
grabbed the majority of the British electricity sector. Although
(or because) the British consumers were terribly overcharged,
the IMF and World Bank required deregulation of electricity if
countries wanted assistance.
The USA had a regulatory system to keep tight lids on utility
monopolies’ profits, with the result that Americans had about
the lowest electricity prices in the world. In 1996 California
tossed out this regulatory system. The parents of Palast saw
their energy bill rise with a whopping 379% in the first year of
deregulation. California’s electricity watchdog claims that
electricity consumers were overcharged by $6.2 billion in 2001.
After PG&E bankrupted California consumers had to pay off the
speculators for some $35 billion.
GREAT BRITAIN – EVEN WORSE
Palast went undercover and got in touch with LLM and told them
that he represented some wealthy American clients.
Derek Draper proudly boasted that LLM had given the US
investment bank Salomon Brothers, a week advance knowledge, that
the cap on total spending was 2.75% instead of the expected
2.5%. Salomon made a fortune.
PowerGen PLC wanted to buy a regional electricity company in
violation of anti-monopoly regulations. Draper arranged a
confidential meeting between a top adviser to Chancellor Brown
with the chairman of PowerGen, Ed Wallis, which secured the
PowerGen merger deal.
Roger Liddle is one of the important men in government, in
charge of European affairs. Liddle told Palast that “Derek knows
all the right people.” Liddle had been managing director at LLM,
before he put his shares into a blind trust. Any new business
Liddle gets Draper goes straight into his “blind” trust.
Here are some other deals in Britain Palast found out by going
undercover: 1) Rupert Murdoch’s News International got valuable
amendments to union recognition bills; 2) Tesco won exemption
from a car park tax worth 20 million pounds per year; 3) Enron
reversed a government plan to block new gas-fired power
stations.
Greg Palast – [I]The Best democracy money can buy[/I] (2002):
HTML http://www.chemtrails911.com/books/The%20Best%20Democracy%20Money%20Can%20Buy%20by%20Greg%20Palast%20.pdf
#Post#: 2153--------------------------------------------------
BIT and Investor-State Dispute Settlement
By: Firestarter Date: November 12, 2018, 12:21 pm
---------------------------------------------------------
When I started my investigation on how the third world is
enslaved through the IMF and World Bank, TTIP was a
controversial issue. Some links refer to Transatlantic Trade and
Investment Partnership Treaty (TTIP), but this really isn’t very
relevant to this post.
The first part of this post is about the effect of Bilateral
Investment Treaties (BITs) and the arbitration of Investor-State
Dispute Settlement (ISDS) of the World Bank. This gives
companies the possibility to “sue” states, so they can get
“compensation” if (democratically elected) parliaments make laws
that they don’t like. This is the corner stone of modern day
colonialism
The second part is about the effects in some Latin American
countries.
RESERVE REQUIREMENTS BANKS
American banks only have to back up investments (or loans) with
a cash reserve ratio of 10%. This means with an American savings
account for 10,000 dollar, the banks can invest an additional
90,000 dollar. In the European Union the reserve requirement is
even lower with 1%, so European financial institutions can even
invest 990,000 for 10,000 dollar. Great Britain has a 0% cash
reserve ratio (so British banks can invest without limit).
On the other hand: Brazil has a reserve requirement of 45%, so
with 10,000 dollar Brazilian banks can invest “only”12,222
dollar. In 1978 Turkey had a reserve requirement of 62.7%, so
with 10,000 dollar it could only invest 5,949 dollar.
EXPLOITATION OF THE THIRD WORLD
The colonial forces still decide how the colonies are exploited,
under the guise of international law.
A nice example is the protective measures by the European Union.
With tax money the European industry is supported, so that the
third world cannot compete with the EU. The EU lets the third
world pay with import duties so the third world has to pay to
export to the Euro zone. Here’s a description of how the EU uses
protective measures against the third world:
HTML http://web.archive.org/web/20130208093112/https://www.tcd.ie/iiis/policycoherence/eu-agricultural-policy/protection-measures.php
As a logical result these third world "banana republics" get
financial problems, so need to borrow money from the World Bank
and IMF to be able to make end meet, for which in return they do
exactly what they are told. So their countries can be plundered
even better.
One of the best tricks are trade agreements between countries,
at the discretion of the white judges. From 1959 on, BITs became
ever more popular; in the early years these BITs were based on
the General Agreement on Tariffs and Trade (GATT) of 1947. In
1995 came the next big development in BITs with the General
Agreement on Tariffs in Services (GATS), for investments in
services. In March 2001, the WTO would design a system to
replace democracy with article VIA of General Agreement on Trade
in Services (GATS). The GATS Disputes Panel decides if a law is
“more burdensome than necessary”, in which case the WTO can
simply set it aside.
From the end of the 1980s on there was some kind of explosion in
BITs; no longer only between developed and developing countries,
but also among and between developed countries, to exclude
developing countries. Developing countries got forced to agree
on BITs, because without it they couldn’t export, while foreign
investors take all the money.
For the history of international treaties for investment see the
story of Vandevelde from 2005:
HTML http://jilp.law.ucdavis.edu/issues/volume-12-1/van5.pdf
In the following story Anghie names exploitation of developing
countries under the guise of international law "positivism":
HTML http://law.wisc.edu/gls/documents/tony_anghie_colonialism.pdf
WTO, TABD, TRIPS
Before transitory heads of state (like presidents) meet at the
World Trade Organization (WTO), the Transatlantic Business
Dialogue (TABD) provides them with the details of their agenda.
TABD pairs influential politicians to powerful CEOs. The
corporate directors give the politicians a grade on “the
scorecard”. In this way big corporations rule over politrics.
One TABD proposal would reverse the $5 billion judgment against
Exxon for the Exxon Valdez oil spill. TABD’s Products Liability
Group that, under the guise of eliminating “non-tariff” trade
barriers, takes aim at American citizens’ right to sue
corporations.
The WTO’s penal system to keep the colonies in slavery is the
Trade-Related Intellectual Property Rights (TRIPS). The USA
unilaterally exempts itself from TRIPS, so US retailers can
still import cheap drugs. The WTO requires, on penalty of
sanctions, that every nation pass laws granting patents on
genetically modified seeds and drugs. When Thailand tried to
register traditional medicines as intellectual property, the US
Trade Representative wrote that this would “hamper medical
research”, so Thailand got nothing.
Goldman Sachs chaired TABD when Peter Sutherland was president
of WTO, and Sutherland went to Goldman Sachs after he left WTO.
ISDS
Based on the arbitration of Investor-State Dispute Settlement
(ISDS) multinationals can sue countries if they think their
investments yield too little in return. The effect is that when
countries take protective measures for environment, health,
workers' rights or human rights, they can be sued by
multinationals. If subsidies are granted or if subsidies are
dropped, countries can be sued. As far as democratically elected
parliaments have something to say, this is even further limited
by the ISDS. It is the World Bank that decides on these
disputes, in other words: by the ISDS arbitrations, the bankers
(the biggest investors) become even more powerful at the expense
of the taxpayer.
First the legal team of an investor looks for the most
advantageous Treaty and arbitral tribunal for the claims that
they were disadvantaged by a country. The ISDS disputes are
judged by 3 arbitrators, of which both parties choose 1
arbitrator, who together choose the President of the arbitration
tribunal. In order to give the arbitrators the leverage to judge
arbitrarily, many treaties are rather vague. 69% of the
arbitrators come from North America or Western Europe.
The most indicted country among ISDS is Argentina for hundreds
of millions to billions, for the measures it took in 2001, the
crisis in Greece was directed by the IMF and the World Bank and
Greece was also indicted repeatedly. Most lawyers involved claim
an hourly rate of over 500 dollars.
The next quote makes clear how “independent” the ISDS
arbitration is, from a lawyer that bragged: [quote]I've got a
case right now in front of [a leading international arbitrator].
Every time I go to a conference, he's there. We read each
other's books. My opponent on the case ... well, he hasn't got a
clue [...]. Between all the partners in our group [...] we've
appeared before every single arbitrator worth knowing. Not just
once, but multiple times in the past few years and we have the
inside knowledge as a result of that.[/quote]
To ensure that the people do not know what is going on: both the
ISDS provisions and TTIP negotiations are done in secret:
HTML http://corporateeurope.org/2012/11/chapter-1-introduction
THE COLONIAL WORLD BANK
It is the Board of Governors, in which all 189 countries
represented, that makes the decisions in the World Bank. The
catch is that these countries have a voting power based on their
economic status. This means that countries that became rich by
plundering the colonies now reward themselves with extra voting
power.
The voting ratio depends on the matter concerned: 1)
International Bank for Reconstruction and Development (IBPRD),
2) International Development Association (IDA), 3) International
Finance Corporation (IFC) and 4) Multilateral Investment
Guarantee Agency (MIGA).
I have made a sum of the total voting power for 11 Western
European countries with the USA, Canada and Australia. This
shows that these 14 countries (with less than 15% of the world's
population) have 56% of the voting power on whole.
On MIGA these 14 countries account for a whopping 88% of the
voting power. Also striking is that the English speaking USA,
GB, Canada and Australia - together account for 36% of the total
and 69% for MIGA.
KINGDOM OF THE NETHERLANDS
I must be very proud that my home country the Netherlands not
only had a starring role in the slave trade, but in 2014 was
first place in the whole wide world in claims for the ISDS.
Theoretically, a company only has to open a mailbox to use Dutch
tax law and BITs.
The following advertisement of my “favourite” law firm De Brauw
Blackstone Westbroek, shows that the Netherlands is an ideal
country to evade taxes and sue countries based on the many
beneficial BITs for the rich and corrupt:
HTML http://www.debrauw.com/wp-content/uploads/NEWS%20-%20PUBLICATIONS/Artikel-OGFJ-Geuze-Rebergen-.pdf
Venezuela was also indicted from the Netherlands by oil
companies ExxonMobil and ConocoPhillips:
HTML http://archive.is/FtZEx
VENEZUELA
Venezuela, one of the largest oil exporters in the world, for
many years has been a country that exports more than it imports
for (which should have made this country wealthy). In Venezuela
there is both a shortage of products in the supermarkets and
power cuts:
HTML http://www.infowars.com/scenes-from-the-venezuela-apocalypse-countless-wounded-after-5000-loot-supermarket-looking-for-food/
In 1999, Hugo Chávez seized power in Venezuela and then
nationalized the oil industry, because it would be unfair if oil
was running out of Venezuela without benefit for the population.
In May 2007, he closed the door on the IMF and World Bank.
In 2009, Chávez had to beg for a loan from the IMF, which
obligated him to devalue the Venezuelan bolivar (causing
inflation). Chávez died in March 2013 and was probably killed by
the CIA:
HTML http://www.pravdareport.com/opinion/columnists/11-03-2013/124025-hugo_chavez_eath-0/
If Chávez was murdered, he didn´t have cancer, but was poisoned
and the Cuban doctors, that gave him radiation, chemotherapy and
surgery no less than 4 times, were complicit to murder. Eva
Golinger suspects a bodyguard of Chávez, Salazar, who after his
death was granted asylum and federal protection in the USA:
HTML http://www.strategic-culture.org/news/2016/03/14/murder-chavez-cia-and-dea-cover-their-tracks.html
In 2013 Nicolás Maduro was helped to the presidency. Maduro
effectively hampers the industry so that it produces less and
less, then sells the imported goods so cheap that these are
exported (back) abroad at a profit, so hyperinflation broke out.
Because the underpriced products are exported to other
countries, the crisis can spread across South America:
HTML http://www.aljazeera.com/indepth/features/2014/03/hoarding-causing-venezuela-food-shortages-20143210236836920.html
The next masterful stroke of Maduro: selling oil and gold
reserves. I would say that if Venezuela exports oil, it should
be as rich as Saudi Arabia. Selling the gold (e.g. to Citibank
and Goldman Sachs) means that Venezuela becomes poorer and
poorer:
HTML http://money.cnn.com/2015/10/29/news/economy/venezuela-selling-gold/index.html.
ECUADOR, PANAMA – ROLDOS AGUILER AND TORIJOS
Ecuadorian President Jaime Roldos Aguiler and Panamanian
President Omar Torrijos were also murdered in 1981.
On Aguiler death it’s known that the Panamanian police reported
that his plane was brought down by a bomb, near Loja, but then
the national government immediately labelled it an “accident”:
HTML https://www.cuencahighlife.com/ecuador-investigates-the-death-of-president-jaime-roldos-attorney-general-says-that-it-could-be-tied-to-the-cias-operation-condor/
On Torijos’ murder there’s much more. Col. Roberto Diaz Herrera
on 8 June 1987 stated (he was later arrested and wrote a book)
[quote]that Noriega had conspired with Lt. Gen. Wallace Nutting,
the chief of the U.S. Army’s Southern Command, based in Panama,
“and with the CIA, to plant a bomb aboard the aircraft in which
[Noriega's predecessor, and Diaz's cousin] General Torrijos was
killed when it crashed in the mountains in 1981″[/quote]
HTML https://www.facebook.com/TheBlackFliles/posts/155203134646312
(archived here:
HTML http://archive.is/hs0Vu)
Herrera also implicated Col. Alberto Purcell, who reportedly was
paid $250,000 by the CIA. Colonel Manuel Noriega had been
involved with the CIA since the late 1950s and was closely
connected to George H.W. Bush, and was suddenly called a drug
lord and dictator. In 1991 Noriega tried to defend himself in
court with evidence that the US government was involved in the
murder of Torijos and tried to assassinate Noriega himself:
HTML http://articles.sun-sentinel.com/1991-05-01/news/9101220014_1_frank-rubino-gen-noriega-panama
#Post#: 2229--------------------------------------------------
Pilger, Philippines, Moldova, Brazil
By: Firestarter Date: November 16, 2018, 4:04 am
---------------------------------------------------------
[B]John Pilger’s documentary “War by other means” (1992)[/B] is
about the wonderful efforts in the 1970s and 1980s by the World
Bank and IMF to keep the world enslaved in debt.
HTML https://youtu.be/79bZ71fUZRU
Contrary to the myth, it’s the poor of the world who finance the
rich, not the other way around. And this video explains how.
It’s really the continuing colonial war, blatantly ignored by
the media. It’s been called a silent war. Instead of soldiers
dying, there’re children dying - according to the UN, more than
half a million per year.
The IMF and World Bank were setup at the Bretton Woods
conference in the US in 1944. The World Bank claimed it would
finance the reconstruction of Europe and then develop the third
world. In reality they are only promoting the interest of the
elite. That was true in the 1970s and even more so in the 1980s.
In the 1980s, the World Bank, IMF, US government and British
government would blackmail “developing” countries by refusing
“loans”.
Every World Bank official is immune from prosecution anywhere in
the world.
The debtor countries have paid more than $1.3 trillion from
1982-1992, and their debt burden has risen by 60% in that
period. If we don’t put a stop to this, this could go on forever
with the debtor countries paying 12 billion dollars every single
month…
In the year 1990 alone, the poor countries transferred more than
6 billion pounds net to British banks. On top of this, the banks
were allowed tax relief; from 1987 to 1990, 1.6 billion pounds.
About 10 times what the British donated to the third world.
In the 1990s, Britain effectively became the poorest European
country. In 1992, 1 in 5 British children lives in poverty.
The documentary puts the Philippines in the spotlight.
In order to eat and feed their family, Eddie and his wife, must
work at least 12 hours a day for a little more than 2 pounds.
Almost 30% of the children born on smoky mountain do not live to
the age of 5.
About one Philippine child dies every hour because of the debt
crisis. The Philippines spends almost half its national budget
on paying the interest on debt to foreign banks.
The year the World Bank declared the Philippines a special case
for development, it lend Dictator Marcos more than 4 billion
dollars.
The Philippines used to have more than enough food, but for
reasons known, agriculture was structurally adjusted. An example
is the Calabarzon super-project, demanded by the IMF, which
grows food specifically for the export. The new factories will
produce profits for foreigners, and… more debt for the
Philippines.
Many farmers will end up homeless on the streets of Manila.
Here’s a transcript of the video:
HTML http://wake-up.acordem.com/blog/26399/
(archived here:
HTML http://archive.is/PCucs)
Maybe the most interesting from the video is the nuclear power
plant sham. The Philippines had to borrow $2.6 billion from the
Export-Import bank to pay the Westinghouse Electric Corporation
for the power plant on the Bataan Peninsula, which will never
create a single Watt of electricity.
In July 1973, President Ferdinand E. Marcos announced the
decision to build a nuclear power plant. In 1974, it was
Westinghouse that got the deal by bribing Marcos. According to
Filipino lawyers, bankers and Government officials, Dictator
Marcos received most of the $80 million in bribes. The payment,
first went to Herminio Disini, who laundered the money through
Switzerland, and transferred most of it to Marcos.
In 1975, Disini was rewarded for his work, when Marcos issued a
secret presidential decree that effectively put Disini's
competitor out of business.
The deal was underwritten by the US government through the
Export-Import bank and some private banks. The Export-Import
bank was founded to help US business overseas, by providing
loans.
William Casey, the later director of the CIA, then Director of
the Export-Import bank, went to Manila and recommended Congress
to give an initial loan so that the other banks would join to
provide more loans.
In June 1974, even before Westinghouse had submitted a detailed
bid, Secretary of Industry Vincente Paterno described the
Westinghouse deal in a memo to Marcos as “one reactor for the
price of two”. It was later discovered that Westinghouse sold
similar technology to other countries for only a fraction of the
price.
Westinghouse got the deal with an estimate of $500 million, then
the project was delayed over and over again, until the price was
around $2.2 billion. All things considered the final cost for
the Philippines is estimated at $2.6 billion. Of course, the
Filipinos have to pay…
After Marcos was overthrown in 1986, President Corazon Aquino
declared the Bataan Power Station unsafe and it was closed
forever. Later a US judge found evidence of bribery, which was
then settled out of court. Westinghouse agreed to pay the
Philippines $100 million. As part of the deal (?), the Aquino
government then gave Westinghouse another $400 million dollars
for further “work”, which were again borrowed from the
Export-Import bank and has to be repaid by the Filipinos...
Since Aquino was brought to power, the poverty level was raised
by another 10%, to 70% of the Philippine population.
In 1986, several Philippine ministers suggested that the
Philippines' $26-billion foreign debt must be lowered. At the
time, the government owed $1.2 billion on the Bataan plant
project. The biggest creditor is the US Export-Import Bank,
which advanced $550 million for the project. Other loans came
from a syndicate led by Citicorp and from Swiss and Japanese
banks.
In May 2011, it was announced that the plant would be turned
into a tourist attraction.
Interest costs for the power plant, in 1986, were $210 million a
year; 8% of the Philippines' total foreign debt of $26 billion:
HTML http://www.nytimes.com/1986/03/07/world/filipinos-say-marcos-was-given-millions-for-76-nuclear-contract.html?pagewanted=all&mcubz=1
(archived here:
HTML http://archive.is/ApLT2)
[B]Moldova[/B]
Unfortunately Moldova doesn’t get much attention in the state
media, but it is a text book example of destroying the economy
by the banksters. Moldova is one of the former countries that
came into existence when the Soviet Union fell apart.
STEALING 1 BILLION DOLLAR
The story is that the Israeli-born Ilan Shor used 3 banks in
Moldova to steal $1 billion; compare this to its Gross Domestic
Product of less than $8 billion. The conspirators first took
control of the banks and then lent themselves nearly $1 billion,
collateral-free.
They transferred the money out of Moldova to banks in Latvia on
accounts held by U.K.-based limited partnerships (shell
companies); the money then mysteriously disappeared. Shor denied
any involvement in the secret takeover and looting of these
banks:
HTML https://www.bloomberg.com/news/articles/2015-05-07/did-this-28-year-old-banker-help-steal-1-billion-from-moldova-
Let’s see if we can understand what happened. Three Moldovan
banks created $1 billion worth of “money” out of thin air, that
disappeared and now the Moldovan people – the poorest country in
Europe – have to repay this “money”. They claim that the “loans”
moved through a “[I]complex web of transactions and that the
records of many transactions were deleted from the banks’
computers[/I]”.
This is impossible. Computers of banks are designed so that
nobody can remove transactions (not even the administrators).
Furthermore this is impossible without the Moldavian Central
Bank helping to arrange this crime (creating $1 billion in loans
in a single action?!).
Ilan Shor and Vlad Filat (prime minister from 2009 to 2013) are
serving years in prison for their involvement in the theft of
National Bank reserves. Vladimir Plahotniuc was/is the leader of
the Democratic party of Moldova and was also accused. Plahotniuc
fled the country to Geneva (Switzerland). In July, August of
this year Mihail Gofman was lobbying in Washington DC:
HTML http://archive.is/yHqPo
It looks like these 3 are scapegoats for the bankers...
DESTROYING MOLDAVA BY NATIONAL BANK
According to economic expert Gheorghe Costandachi the National
Bank of Moldova (NBM) is intentionally destroying the economy.
There are enormous quantities of liquidity in banks, but the NBM
majors the mandatory reserve rates which will effectively make
loans impossible. Such a strategy is pushing the economy to a
grinding halt. The problems become even greater when Moldova
also has to repay the disappeared $1 billion.
After the economy crashes the rich (foreign) investors
(=bankers) can buy the economy pennies for dollars, while
Moldova remains poor. The NBM governor could have stopped the
robbery of $1 billion, but didn’t intervene. In Ukraine, the
minimum wage is $240 a month, while Moldova lives impoverished
at $85 in 2012 American dollars:
HTML http://web.archive.org/web/20170125193725/http://jurnal.md/en/economic/2015/6/10/economic-expert-nbm-actions-risk-to-destroy-the-business-environment-of-moldova/
RIOTS IN MOLDOVA
The average yearly salary in Moldova is less than $2000 per year
(that’s average, so the median is even lower). There’s inflation
so the bills get higher, so people got angry and riots broke
out. See this picture of September 2015.
Neighbouring country Romania offered Moldova a $162.5 million
loan package in October 2015. After the first $65 million
tranche Romania blackmailed Moldova by saying that it will not
get the second tranche unless Moldova “undertakes a real fight
against corruption, implements reforms targeting the justice
sector and signs a draft loan agreement with the IMF”. Basically
this means they have to let IMF and World Bank finish Moldova
off:
HTML http://www.ibtimes.com/moldova-economic-crisis-how-banking-scandal-political-corruption-led-protests-europes-2295822
Nearly 17% of the Moldovan population live below the poverty
line. In response to the $1 billion bank fraud (by the Moldavian
Central bank), the EU, International Monetary Fund and World
Bank have frozen their financial assistance to Moldova.
According to the US Embassy in Chișinău, protests
highlight the frustration experienced by many Moldovans due to
lack of reforms in their country. Yeah sure... these people
cannot get food on their plate and they would worry about
“reforms”:
HTML https://en.wikipedia.org/wiki/2015%E2%80%9316_protests_in_Moldova
CLINTON AND SOROS CONTROL THE SITUATION
The Democratic party of Moldova have contracted the Podesta
group (very close to the Clintons) for lobbying services in June
2016 for 600,000 dollars (of course it isn’t suspicious that
this kind of money is paid for “lobbying”):
HTML http://www.moldova.org/en/democratic-party-moldova-pay-600k-podesta-group-lobby-services/
It’s none other than the Soros Foundation of Rothschild agent
George Soros that is monitoring the Legal system in Moldova:
HTML http://www.soros.md/en/event/2010-12-15
That’s the same George Soros that in late 1989 arranged with the
Polish Prime Minister Mieczyslaw Rakowski and the leaders of
Solidarnosc to bankrupt its industrial and agricultural
enterprises, using astronomical interest rates, withholding
state credits, and burdening firms with unpayable debts. After
the economy of Poland crashed the economy could be bough dirt
cheap. An example is the steel facility Huta Warsawa that was
bought for $30 million, but was worth at least $3 billion.
In late 1991 Soros arranged a similar plan with the Yeltsin
circle for Russia. It was Soros who introduced Jeffery Sachs and
shock therapy (draconian cuts in state spending to an economy
that totally depended on the state) into Russia. Since January
2, 1992, shock therapy was introduced with chaos and
hyperinflation as a result:
HTML http://balder.org/judea/George-Soros-The-Secret-Financial-Network-Behind-The-Wizard--By-William-Engdahl.php
WORLD BANK TO FINISH THE JOB
The World Bank has been “helping” Moldova since 1999 and claims
impressive progress because the poverty rate was reduced from
72% in 1999 to 22% in 2010 (remember: an average year salary of
less than 2000 dollar).
An estimated 18,000 pregnant women cannot buy food and need food
aid packages because of the increase in food prices in the
summer of 2008. The Strengthening the Effectiveness of Social
Safety Nets Project is “helping” over 50,000 poor households
with “targeted” social assistance. In a country of 3.5 million
that’s a very large impoverished percentage.
Apparently much progress has been made by “[I]the use of ICT as
a tool for improved public services, greater transparency and
efficiency[/I]”. An automated social assistance information
system has been developed for the Ministry of Labour, Social
Protection and Family to maintain records of persons requiring
social services. Read what this means: Moldovans cannot buy food
to eat and now the World Bank has arranged that they all have
computer files (Big Brother is watching them too!).
Where 50,000 are too poor to buy food the World Bank has
rehabilitated over 40 primary healthcare centres. So the health
care can guarantee the amount of poor people will reduce:
HTML http://www.worldbank.org/en/news/feature/2012/10/17/world-bank-moldova-20-years
In this year’s Moldovan presidential election even a former
World Bank economist - Maia Sandu – has tried to get elected.
But it was Igor Dodon that won with a landslide:
HTML http://www.rferl.org/a/moldovana-face-critical-choice-in-presidential-run-off/28112323.html
[B]Brazil – Paulo Guedes[/B]
With the support of Steve Bannon: Jair Bolsonaro was elected as
Brazil’s next president.
While Jair Bolsonaro ran his election on a platform of making an
end to corruption, his Chief economic adviser, banker Paulo
Guedes, was caught in a corruption probe.
Guedes was educated in the US at the University where Milton
Friedman’s economic theories rules supreme. Paulo Guedes’
strategy is very similar to the strategy that World Bank and IMF
use to strangle the economies of “developing” countries.
Paulo Guedes was one of the founders of: Banco Pactual, the
Instituto Millenium (Millennium Institute), and Plano Real.
Guedes has also directed several investment funds and companies.
I guess that Bolsonaro didn’t promise to raise taxes but Guedes
is planning greater tax revenues (or higher taxes)...
Guedes has promised to cancel the fiscal deficit (it will reach
160/180 billion reais in 2018) within a year. By selling Brazil
by the pound; his aggressive plan of privatisation could bring
about 800 billion reais to the State, leaving the Brazilian
population in the claws of the investment bankers.
Guedes will introduce a new contributory system, so the (slave)
labourers pay more to the pension funds, while cutting “gold
pensions”, which will lead to a lower burden on businesses.
Guedes plans reduced interest rates, which supposedly is a boost
for the economy, but of course only the big corporation will
profit, and inflation will rise.
Guedes also support the “globalists” by increasing
import-export, which will surely support the rich and corrupt -
reducing import tariffs and creating international bilateral
agreements:
HTML https://updatebrazil.wordpress.com/2018/10/22/the-6-key-points-of-the-thought-of-paulo-guedes-superminister-of-the-bolsonaro-economy/
(archived here:
HTML http://archive.is/Vxvy2)
For more information on how Steven Bannon, of Goldman Sachs,
Breitbart and Cambridge Analytica, is rigging this year’s
presidential election in Brazil:
HTML https://www.lawfulpath.com/forum/viewtopic.php?f=27&t=1398#p5455
#Post#: 2514--------------------------------------------------
William Engdahl - A Century of War Part II
By: Firestarter Date: November 25, 2018, 10:41 am
---------------------------------------------------------
On 4 November, I ordered (a paper version of) the book by
William Engdahl from Bol.com (maybe the biggest online shop in
the Netherlands). On 10 November, I was informed that the book
was delivered, and I had to pay within 2 weeks.
On 19 November the book was still not delivered, so I logged in
to complain. This wasn’t the first time that something goes
wrong when I order something from Bol.com...
I first got asked for the Order nr. The previous times that I
complained, this wasn’t asked. Then I got the bizarre question
for my emailadress, the third time this was explained “for
verification” (I was logged in with my emailadress!).
Then they even got rude, insisting that the book had been
delivered according to the “Track & Trace code” and demanding
that I contact my neighbours. After the third time of this
demand, I asked for the “Track & Trace code” and then
immediately was asked if I would like to order the book again.
After my third request for the “Track & Trace code”, it was
finally given. When I looked it up on [I]Postnl.nl[/I] it wasn’t
found.
I asked to cancel the payment order, to which I got answered
that this isn’t possible. On my insisting that the book wasn’t
delivered, I was asked if I want it “afboeken”, to which I
answered “yes” (I’m not sure what this means).
In this post I’ll finish my summary of Engdahl’s excellent book
(see the Original Post) on some of the wondeful work by the IMF
in the 1990s....
[B]Destroying Asia’s tigers[/B]
The G-7 meeting in September 1985 at the Plaza Hotel was
designed to bring the overvalued dollar down to manageable
levels. The Bank of Japan, at the request of Washington, cut
interest rates down to 2.5% in 1987, where it remained until May
1989. At first, instead of more Japanese purchases of US goods,
investors won big on the rising Nikkei stock market, creating a
colossal bubble, also of real estate prices. Stock prices rose
at least 40% annually, while real-estate prices in and around
Tokyo ballooned with an increase of around 90%.
After the yen rose from 250 to only 149 yen to a dollar,
Japanese capital flowed into US real estate, US government bonds
and US stocks, thereby aiding the presidential election of
George H.W. Bush.
In 1988, the world’s greatest stock and real-estate bubble had
been created with the Nikkei index rising 300% in only 3 years
since the Plaza accord. The nominal value of all stocks listed
on the Nikkei stock exchange accounted for more than 42% of the
world stock value!
The major Wall Street investment banks, led by Morgan Stanley
and Salomon Bros., used exotic new derivatives and financial
instruments to turn the decline of the Tokyo market into a near
panic sell-off, as the Wall Street bankers made a killing by put
options in Nikkei stocks. By March 1990, the Nikkei had lost
23%, more than $1 trillion from its peak, within months,
Japanese stocks had declined nearly $5 trillion.
East Asia had been built up during the 1970s and especially the
1980s by Japanese state development aid, large private
investments and MITI support. In east Asia during the 1980s, a
high worker productivity and economic growth rates of 7–8% per
year were normal, leading to an overall rise in the standard of
living in Asia.
In January 1990, Japan’s Prime Minister Kaifu travelled to West
Europe, Poland and Hungary, to discuss the economic development
of the former communist countries of East Europe. In early 1990,
President Bush Sr sent defense secretary Dick Cheney to Tokyo to
“discuss” drastic US troop reductions in a thinly disguised form
of blackmail.
Now the countries in East Asia were told to open their markets
to foreign capital flows and short-term foreign lending. Between
1994 and May 1997, bubbles in luxury real estate, stock values
and other assets were made by a sudden flood of foreign dollars.
Rothschild agent George Soros, head of Quantum Fund, acting in
secrecy, was armed with an undisclosed credit line from a group
of international banks including Citigroup. They gambled that
Thailand would be forced to devalue the baht and break from its
peg to the dollar. In May 1997, Soros, Julian Robertson (head of
the Tiger Fund and reportedly also of the Long-Term Capital
Management hedge fund, whose management included former Federal
Reserve deputy David Mullins), unleashed a huge speculative
attack on the Thai currency and stocks. By June, Thailand was
forced to float the baht and was ask the IMF for “help”. Swiftly
the same hedge funds and banks crashed the Philippines,
Indonesia and finally South Korea, making billions in the
process.
The populations sank into chaos and poverty. While the east
Asian countries had a combined account deficit of $33 billion in
1996 speculative money flowed in. In 1998–1999, it rose to $87
billion. By 2002, it peaked at $200 billion. Most of that money
returned to the US in the form of Asian central bank purchases
of US Treasury debt, effectively financing Washington policies.
[B]Destroying Yugoslavia[/B]
Even before the fall of the Berlin Wall, Washington and the IMF
were working “shock therapy” in Yugoslavia. In 1989, the IMF
demanded that prime minister Ante Markovic would structurally
reform the economy.
In 1990, the Yugoslavian GDP sank with 7.5%, and another 15% in
1991. The IMF ordered wages to be frozen at 1989 levels, while
inflation rose dramatically, leading to a fall in real earnings
of 41% by the first half of 1990. By 1991, prices had risen with
more than 140%.
To make matters worse, the IMF ordered full convertibility of
the dinar and “freeing” interest rates.
The living standard of Serbs, Kosovans, Bosnians, Croats and
others declined dramatically. The IMF explicitly prevented the
Yugoslav government from obtaining credit from its own central
bank, crippling the ability of the central government to finance
social and other programs.
This led to the formal declaration of independence by Croatia
and Slovenia in June 1991. In 1992, Washington imposed a total
embargo on Yugoslavia, freezing all trade and plunging the
economy into chaos, with hyperinflation and 70% unemployment as
the result.
In a June 1990 EU summit, Dutch prime minister Ruud Lubbers
proposed a European energy community, to bind the countries of
the “European Economic Community with the USSR and the countries
of Central and Eastern Europe”. In 1995, the EU had initiated
the Interstate Oil and Gas Transport to Europe (INOGATE)
program, “to promote the security of energy supplies”.
In February 1999, just before the Clinton administration began
bombing Serbia, EU commissioner Hans van der Brock stated as the
goal of INOGATE: “[I]to help free the huge gas and oil reserves
of the Caspian Basin by overcoming … bottlenecks which have
impeded access to local and European markets[/I]”.
A pipeline route, Albanian Macedonian Bulgarian Oil Pipeline
Corp. (AMBO), backed by the US government and First Boston Bank,
had been on hold for several years. Before it could move ahead,
Washington decided it had to get rid of the Milosevic regime
obstacle. Thousands of tons of bombs later, and after an
estimated $40 billion of destruction to the economy and
infrastructure, the Pentagon began construction of one of the
largest US military bases in the world - Camp Bond Steel near
Gnjilane in southeast Kosovo, for 3,000 soldiers. By 2001,
Washington was in control of the Balkans.
In June 1999, when the bombing of Serbia was finished, the US
government announced it was funding a feasibility study for the
AMBO pipeline. The AMBO feasibility study was done by
Halliburton Corporation’s Brown & Root, when Dick Cheney was
chairman. The US ambassador to the UK from 2001 to 2004, William
Farish, a trusted friend of the Bush family and heir to the
Standard Oil fortune, admitted that the oil riches of the
Caspian area was a major reason for American interest in the
Balkans.
For more information on the destruction of Yugoslavia:
HTML https://www.lawfulpath.com/forum/viewtopic.php?f=7&t=1359
[B]Destroying Eastern Europe – IMF[/B]
Mikhail Gorbachev privately met with the Honecker communist
leadership in East Germany, and more or less ordered them to
give way to the popular movement for “freedom” sweeping East
Germany. Within weeks, the old order in the DDR was swept aside
in a popular revolution.
On 29 November 1989, days after the collapse of the Berlin Wall,
Deutsche Bank head Alfred Herrhausen was blown up in his
armoured car. Herrhausen was a key adviser to the Kohl
government, who had told of his plans to turn East Germany into
Europe’s most modern economic region in 10 years.
In July 1990, at a meeting of the G-7 industrial nations in
Houston, Texas, US Secretary of State James Baker said:
[quote]We have agreed to ask the IMF … to undertake a detailed
study of the Soviet economy … to make recommendations for its
reform.[/quote]
Harvard economists, like Jeffrey Sachs, were flown to Moscow to
assist in the destruction of the old central state apparatus. In
1992, the IMF demanded a free float of the Russian ruble. Within
a year, consumer prices had increased with 9,900%, while real
wages fell with 84%. Industrial production fell to half its
earlier level as inflation passed levels of 200%. Average life
expectancy for men dropped to 57 years by 1994, the level of
Bangladesh or Egypt.
IMF shock therapy was intended to create weak economies all
around Russia, so that they had to depend on Western capital.
In 1996, the IMF provided Russia a $6 billion loan only if
Anatoly Chubais was made minister for privatisation.
In 1997, George Washington University Professor Peter Reddaway
wrote that Chubais had been accused in Russia of “[I]censoring
the media, undermining democracy, engaging in dubious personal
dealings, taking orders from Washington and building a
criminalized form of capitalism[/I]”. This was reason enough for
deputy Treasury secretary Lawrence Summers to back him.
Ukranian agriculture was deregulated on IMF and World Bank
demands.
In the late 1990s, the world oil prices had increased to more
than $30 per barrel.
As a result of the IMF demands, the people were forced to buy
local goods at dollar prices.The price of bread shot up by 300%,
electricity with 600%, and public transportation with 900%. With
sky-high electricity costs and no bank credit, state industries
were forced into bankruptcy. Foreign speculators could pick up
the economy at dirt-cheap prices.
Best of all, the oil and gas riches of the former Soviet Union
could be scooped up by the US and British oil multinationals. In
1998, the IMF estimated that 17 Russian oil and gas companies,
with a market value of at least $17 billion, had been sold by
Chubais for $1.4 billion. Companies like Lukoil, Yukos, Sibneft
and Sidanko were created.
The state gas monopoly Gazprom, the world’s largest gas
producer, was worth about $119 billion; 60% of Gazprom was sold
to private Russian groups for some $20 million.
William Engdahl – [I]A Century of War; Anglo-American Oil
Politics and the New World Order[/I] (first published in 1992,
but updated since):
HTML http://www.takeoverworld.inf
o/pdf/Engdahl__Century_of_War_book.pdf
#Post#: 2605--------------------------------------------------
Mont Pelerin Society
By: Firestarter Date: December 1, 2018, 10:43 am
---------------------------------------------------------
[quote author=Firestarter link=topic=228.msg2136#msg2136
date=1541961215][I]For more on who brought Adolf Hitler to power
in Germany:
HTML https://www.lawfulpath.com/forum/viewtopic.php?f=7&t=1340[/I][/quote]<br
/>The World Bank, International Monetary Fund, and United Nation
s
were formed as the result of the Second World War.
After finding links between Count Coudenhove-Kalergi’s
Pan-Europa Union (PEU) and foreign policy of the Nazis, I looked
a little further to find that the same psychopaths that financed
Hitler were also associated to the PEU and the Mont Pelerin
Society that are continuing the agenda of a World government.
In 1923, Count Coudenhove-Kalergi launched the [B]Pan-Europa
Union[/B] of which Hjalmar Schacht became the first member.
Coudenhove-Kalergi was financed by Rothschild, Paul Warburg and
Bernard Baruch. Coudenhove-Kalergi was related to Rothschild
agent and the brother-in-law of Paul Warburg, Jacob Schiff
(1847-1920), who made Kuhn, Loeb & Co. into a banking
powerhouse, and was the architect of the Federal Reserve. The
Warburgs also financed the Bolshevik Revolution in Russia.
Other top Nazis and fascists that supported the PEU, included
Walter Funk (Schacht's handpicked successor as finance minister)
and Benito Mussolini. Other backers of Pan-Europa included
Winston Churchill; Columbia University President Nicholas Murray
Butler, leading patron of the Comintern's Frankfurt School; and
American Fabian socialist Walter Lippman.
Coudenhove-Kalergi wrote in “[I]Crusade for Pan-Europe:
Autobiography of a Man and a Movement[/I]” (1943) that “[I]
Haushofer, Schacht, and Funk did and probably still do
everything to convince Hitler of the necessity of creating some
kind of European federation under German hegemony[/I]”.
In October, 1926, Governor of the Bank of France, Emile Moreau,
sent general manager of the Bank of France, Pierre Quesnay, to
London to find out what Governor of the Bank of England, Montagu
Norman, was up to.
Quesnay reported back: [quote]The economic and financial
organization of the world appears to the Governor of the Bank of
England to be the major task of the Twentieth Century. In his
view politicians and political institutions are in no fit state
to direct with the necessary competence and continuity this task
of organization which he would like to see undertaken by central
banks, independent at once of governments and of private
finance.[/quote]
Carl Menger trained a generation of Austrian School economists,
including Eugen von Boehm-Bawerk, Ludwig von Mises, and
Friedrich von Hayek. Von Hayek attended the Boehm-Bawerk
seminars at Vienna--along with future Bolshevik leader Nickolai
Bukharin. Von Hayek was strongly influenced by Austrian
aristocrat Ludwig von Mises (1881-1973). Ludwig von Mises also
participated in Coudenhove-Kalergi’s Pan Europe movement.
Von Hayek traced his own philosophical roots to the early
eighteenth century Satanist, Bernard Mandeville. On 23 March
1966, Von Hayek lauded Mandeville as a “master mind”, the
inventor of modern psychology, and as the true intellectual
forbearer of David Hume, Adam Smith, Jeremy Bentham, Carl
Savigny and Charles Darwin. Von Hayek called Mandeville's poem
“The Fable of the Bees” perhaps the “greatest philosophical
treatise ever composed”.
In 1931, Friedrich von Hayek was invited to deliver a series of
lectures at the London School of Economics. During this period,
he became part of the British [B]Fabian Society[/B].
In 1940, Von Mises migrated to New York, with funding from the
Rockefeller Foundation. Von Mises’ students at New York
University included Arthur Burns, who would become Federal
Reserve Chairman (1970-78), and Milton Friedman.
Then in 1939, Von Hayek initiated the [B]Society for the
Renovation of Liberalism[/B], with Frank Knight and Henry Simons
(who would later teach Milton Friedman at the University of
Chicago); Walter Lippman; Viennese Aristotelian Society leader
Karl Popper; fellow Austrian School economist Ludwig von Mises;
and Sir John Clapham, a senior official of the Bank of England
who from 1940-46 was president of the British Royal Society. In
April 1947, the Mont Pelerin Society was founded by Von Hayek in
Switzerland as its new incarnation.
The sister organisation to Mont Pelerin was the Pan European
Union. Leading Mont Pelerin figures, including Von Hapsburg and
Lippman, were also prominent in the Pan Europe movement.
The radical policy that Von Hayek proposed – strict monetarism,
near-total deregulation, and Pan-European federalism – was
almost the same policy as Hitler’s National Socialism. The
concept of a Pan-European federation was a cornerstone of Von
Hayek’s scheme.
The [B]Mont Pelerin Society[/B] was originally financed by the
top European aristocratic families, including the Thurn und
Taxis, Wittelsbach, Hapsburg and Kalergi families. The same
families financed the Pan European Union. Today, the entire Mont
Pelerin organisation is an asset of the House of Windsor-led
Club of the Isles.
Among the other founders of the Mont Pelerin Society were:
Otto von Hapsburg, Crown Prince to the Austro-Hungarian throne
and cofounder of the PEU, later honorary professor of the
University of Jerusalem, and recipient of the “International
Humanitarian Award” of the Anti Defamation-League (ADL);
Max von Thorn und Taxis, the head of the 400-year-old Venetian
aristocratic Thorn und Taxis family;
Walter Lippman, a German Jew who had been an adviser to
President Woodrow Wilson and assisted in the drafting of
Wilson’s Fourteen Points, which was the basis for the Paris
Peace Treaty and the foundation of the League of Nations;
Karl Popper, an Austrian Jew.
Other founders of the Mont Pelerin Society were prominent
members of various Eugenics societies, whose agenda included
population reduction by means of sterilisation, controlled
breeding and genocide. This included Ralph Harris (1924-2006), a
leader of the British Eugenics Society that had earlier helped
draft Hitler’s race laws. Harris was also a director of Rupert
Murdoch’s Times Newspapers from 1988 to 2001.
Friedrich von Hayek established a worldwide network of
right-wing think tanks.
Antony Fisher was elected to the Mont Pelerin Society in 1954.
In 1955, he founded the [B]Institute of Economic Affairs[/B]
(IAE) in London, as the first of dozens of front groups for Mont
Pelerin. Other IEA founders included Von Hayek and Ralph Harris.
In recognition of the Mont Pelerin Society’s loyal service,
Queen Elizabeth II made Ralph Harris a peer for life and
knighted Antony Fisher and Allan Walters. Walters was given an
office at 10 Downing Street as Thatcher’s resident economic
advisor.
University of Chicago Professor Milton Friedman was president of
the Mont Pelerin Society from 1970 to 1972. From 1981 to 1988,
Friedman was an adviser to Ronald Reagan.
In 1973, Mont Pelerin orchestrated the launching of the Coors
family think tank, the [B]Heritage Foundation[/B], in
Washington. On 20 February 1980, Margaret Thatcher sent a letter
to Fisher to endorse the project. On 8 May, Milton Friedman
threw his support behind the international effort: “[I]Any
extension of institutes of this kind around the world is
certainly something ardently to be desired[/I]”.
In 1981, Fisher launched the Atlas Economic Research Foundation
in San Francisco, now headquartered on the George Mason
University campus in Fairfax, Virginia near Washington. In
February 1985, Fisher wrote of the need to transform the
“[I]extremist'' anti-government, radical free market policies of
the von Hayek Mont Pelerin Society apparatus into the ‘new
orthodoxy' through the launching of hundreds of small think
tanks on every continent[/I]”.
Since 1977, Edwin Feulner was President of the Heritage
Foundation, which launched the myriad of right-wing think tanks
that litter the American political landscape today. From
1996-1998, Edwin Feulner was also President of the Mont Pelerin
Society and Senior Vice President in 2000 and then the
Treasurer..
Feulner also served on the Board of Governors of the [B]Council
for National Policy[/B] (CNP) in 1982 and 1996 and the CNP
Executive Committee in 1988 and 1994.
In 1981, the Hunt brothers funded the right-wing Moral Majority,
headed by Jerry Falwell, and also provided the start-up money
for the Council for National Policy, of which Nelson Bunker Hunt
was the second president. The Hunt brothers funded the CNP to
promote the Conservative Revolution which has corrupted the
Christian Church with political activism and laissez faire
economics.
Nelson Bunker was also a board member and leading financier of
the [B]John Birch Society[/B] and a member of a racial eugenics
society, the International Association for the Advancement of
Eugenics and Ethnology. For more on the Council for National
Policy:
HTML https://forum.davidicke.com/showthread.php?t=316358
In 1974, Fisher established the Fraser Institute in Vancouver,
Canada and the Pacific Institute for Public Policy Research in
San Francisco in 1978. Sir Antony Fisher also cofounded the
[B]Manhattan Institute[/B] in 1977 with Friedrich von Hayek.
In 1994, Manhattan Institute scholar Charles Murray, co-authored
“The Bell Curve”, to “prove” the intellectual inferiority of
black races:
HTML https://watch.pairsite.com/synarchy-4.html<br
/>(archived here:
HTML http://archive.is/988BC)
HTML http://american_almanac.tripod.com/vonhayek.htm (archived here:
HTML http://archive.is/V0XKh)
#Post#: 2661--------------------------------------------------
The 2019 market crash
By: Firestarter Date: December 5, 2018, 10:27 am
---------------------------------------------------------
It’s not a question of “if” but only of “when” they will
orchestrate another market crash...
It’s a certainty that after the historically low interest rates,
the Fed made the interest rates zero from 2008 until December
2015. This was in response to the crash of the inflated housing
bubble that the Fed created with about 2 years of 1% interest
rates. So this time the bubble has been inflated much more.
Trillions of dollars in cheap money have fuelled the
second-longest economic expansion in U.S. history, as measured
by GDP. The market has been rising for nearly a decade straight
without a 20% correction. It’s unlikely that this will continue
beyond July 2019, as there as a never been a longer rise in US
history. By historical standards, the current bubble will be
crashed likely before that time.
Since December 2015, the Fed has been steadily raising interest
rates, roughly 0.25% per quarter. It’s just a matter of time
that they will orchestrate a chain of events that could become
the biggest crash in history, followed by a recession of major
proportions.
Around 84% Fed interest rate-hiking (16 of the last 19 times)
have ended in a crisis. See some of the examples in the chart
below.
[IMG]
HTML https://archive.is/loMBi/1a52ee2c19a649f9ff87c3b1d27ca799bba0e5dc.png[/img]
1929 Wall Street Crash - The Federal Reserve’s easy money
policies of the 1920s, created an enormous stock market bubble.
In August 1929, the Fed raised interest rates and only a few
months later, the bubble burst on “Black Tuesday”, when the Dow
Jones lost over 12%. Between 1929 and 1932, the stock market
lost 86%.
1987 Stock Market Crash - In February 1987, the Fed withdrew
liquidity from the market; this made interest rates rise. They
continued this until the “Black Monday” crash in October 1987,
when the S&P 500 lost 33% of its value.
Asia Crisis and LTCM Collapse – By a period of relatively low
interest rates, a bubble was created. Then in the mid-1990s,
Greenspan’s Fed raised rates. This time the crisis started in
Asia, spread to Russia, and then hit the US, where markets fell
over 20%.
Tech Bubble - Greenspan’s next rate-hike cycle helped to bust
the tech bubble, which he’d helped to inflate with low interest
rates. After the tech bubble burst, the S&P 500 was halved.
Subprime Meltdown and the 2008 Financial Crisis - In 2004, the
Fed embarked on another rate-hiking cycle. When mortgages
collapsed, financial institutions couldn’t keep up. This created
a cascading crisis that nearly collapsed the global financial
system. The S&P 500 fell by over 56%:
HTML http://patriotrising.com/this-is-how-the-everything-bubble-will-end/
(archived here:
HTML http://archive.is/loMBi)
If you buy $20,000 with loaned money, you could claim that your
“personal GDP” is soaring, but in reality you would put your
family in a precarious financial position.
The following 8 examples show that the current financial
condition of the US is a “horror show”…
#1 US consumer credit hit another all-time record high. In the
second quarter of 2008, total consumer credit reached a total of
$2.63 trillion and in 2018 that has soared to $3.87 trillion (a
48% increase in 10 years).
#2 Student loan debts have hit another all-time record high at
more than $1.5 trillion dollars (an increase of almost 80% in 8
years).
#6 According to one recent study, the “[I]rate of people 65 and
older filing for bankruptcy is three times what it was in
1991[/I]”.
#5 Real wage growth in the US has recently declined by the most
in 6 years.
#7 In 2018, already 57 major retailers have announced store
closings.
#8 The size of the official US budget deficit is up 21% under
President Trump.
#9 It is estimated that interest on the national debt will
surpass half a trillion dollars for the first time in 2018.
#10 Goldman Sachs has estimated that the yearly US budget
deficit will surpass $2 trillion dollars by 2028:
HTML https://www.zerohedge.com/news/2018-08-13/10-numbers-prove-americas-current-financial-condition-horror-show
(archived here:
HTML http://archive.is/Bb5yD)
A strange effect of the long-time historic low interest rates is
that investors get more yield on the 3-year than on the 5-year
Treasury note.
This could be a sign that the crash is coming shortly:
HTML https://www.aol.com/article/finance/2018/12/03/the-treasury-yield-curve-just-inverted-sounding-the-alarm-for-recession/23607515/
Often state propaganda is being spread by our wonderful media on
the “low” unemployment figures. We are for example told that
unemployment in the US is only 3.8% - the lowest “[I]in nearly
50 years[/I]”.
The truth is that current unemployment isn’t “low” at all. For
years, the US government has been taking numbers out of one
category and putting them into another category. While the
official number of “unemployed” Americans keeps going down, the
number of Americans “[I]not in the labor force[/I]” keeps going
up.
According to the Federal Reserve, there were 6,065,000 working
age Americans unemployed last May.
According to the same Fed, another category of 95,915,000
working age Americans are not “[I]officially unemployed[/I]”
because they are considered to be “[I]not in the labor
force[/I]”.
When you add 6,065,000 and 95,915,000, there are 101,980,000
working age Americans that didn’t have a job last month. That’s
an all-time record high; higher than it was during the last
recession, when the number of working age Americans without a
job never surpassed 100 million.
According to John Williams, the unemployment rate is actually
21.5%.
[IMG]
HTML http://www.shadowstats.com/imgs/sgs-emp.gif?hl=ad&t=1527859343[/img]
There is nothing “sustainable” about the current economic
situation of the US. It looks like we are in the terminal phase
of greatest debt bubble in history. We can expect that this
bubble will implode in the near future. I guess that banks are
ready to take away more of our assets...
All of the US’s long-term financial imbalances have continued to
get worse since the last recession.
Time is running out, but most Americans rather look the other
way:
HTML http://theeconomiccollapseblog.com/archives/the-truth-about-the-employment-numbers-nearly-102-million-working-age-americans-do-not-have-a-job-right-now
(archived here:
HTML http://archive.is/8ZOex)
In 2016, Donald Trump promised that he could rid the US national
debt of $19 trillion debt in 2 terms as president "[I]over a
period of eight years[/I]".
Trump warned that the US is "[I]sitting on a bubble right now
that's going to explode[/I]".
His “new” budget plan looks more like a ballooning deficit, that
will likely swell debts and deficits. According to Goldman
Sachs, the budget bill will increase the US deficit by $1.1
trillion next year. At more than $20 trillion, greater than the
annual GDP, the United States' debt is already at its highest
level since World War II.
Because of the December tax cuts, of which the wealthy profit
most, the federal revenues are cut by $1.5 trillion over 10
years.
There is a $1.5 trillion plan to upgrade the nation’s
infrastructure.
The budget deal calls for an additional $300 billion in defence
spending over 2 years.
Trump said in an Oval Office appearance in February:
[quote]We're going to have the strongest military we've ever
had, by far.
In this budget we took care of the military like it's never been
taken care of before.[/quote]
After the peak in the deficit in the wake of the 2008-2010
recession, President Barack Obama’s administration reduced the
deficit from 9.8% of GDP in 2009 to 2.4% by 2015.
After it reached $666 billion in the 2017 fiscal year, the
deficit will likely hit $1 trillion in 2019.
In fiscal year 2018, borrowing by the US Treasury will climb to
$1.4 trillion from $550 billion in 2017:
HTML https://www.yahoo.com/news/stimulus-puts-us-debt-upward-trajectory-193132670.html
(archived here:
HTML http://archive.is/un9Kv)
[IMG]
HTML https://cdn.vox-cdn.com/uploads/chorus_asset/file/10210545/DeficitsPOTUSFY19.png[/img]
The bubble hasn’t only been inflated by the low interest rates,
but since the beginning of 2015 also by the low oil prices
(normally the low interest rates, would support a higher oil
price).
[IMG]
HTML https://archive.is/cAwaF/0f277ca5f6785b7eca601942d79f506f9e6f7ded.png[/img]
This month, the Alberta government in response to the low oil
price has ordered a mandatory cut of crude oil production and
bitumen by 8.7%, or 325,000 barrels per day, starting in
January:
HTML https://www.cbc.ca/news/canada/calgary/oil-price-gap-explained-1.4931209
It must be easy to bust the bubble, when “they” control the
markets and media: [quote]Oil prices jumped by more than 5
percent on Monday after the United States and China agreed to a
90-day truce in a trade dispute, and ahead of a meeting this
week of the producer club OPEC that is expected to agree to cut
supply.
U.S. light crude oil CLc1 rose $2.92 a barrel to a high of
$53.85, up 5.7 percent, before easing slightly to around $53.50
by 0830 GMT. Brent crude LCOc1 rose 5.3 percent or $3.14 to a
high of $62.60 and was last trading around $63.15.[/quote]
HTML https://uk.reuters.com/article/uk-global-oil/oil-prices-rise-after-us-china-agree-to-hold-off-on-new-tariffs-idUKKBN1O10V7
Just a combination of rising interest rates and oil prices could
be enough.
Maybe stories like these even help "them" to orchestrate
crashes...
#Post#: 2783--------------------------------------------------
The coming market crash
By: Firestarter Date: December 13, 2018, 11:54 am
---------------------------------------------------------
According to financial “experts” inversion of interest rates
(that is: higher interest on short-term loans than on long-term
loans) is a reliable “recession indicator”. In the past
inversion of interest rates has frequently preceded a recession.
Most interest rates haven’t inverted (only the 3-5 yield); the
“most important” relationship — between the 3-month and 10-year
government notes — is not inverted.
The best signal of a coming recession is when a bulk of the
yield spreads have gone negative simultaneously. When that
happened it usually took several months before the economy
actually slipped into recession.
[IMG]
HTML https://www.zerohedge.com/sites/default/files/styles/inline_image_desktop/public/inline-images/Yield-Spreads-Various-120518.png?itok=xOUnrRGi[/img]
You should look at the trend of the data which looks like the
inversion of other interest yields could happen soon.
Financial “expert” Jeffrey Gundlach said: [quote]The rate on the
2-year has already jumped above the shorter-term 5-year note, a
move that suggests the ‘economy is poised to weaken.[/quote]
HTML https://www.zerohedge.com/news/2018-12-07/weekend-reading-which-yield-curve-really-matters
#Post#: 2784--------------------------------------------------
LaRouche – Ugly Truth About Milton Friedman
By: Firestarter Date: December 13, 2018, 11:55 am
---------------------------------------------------------
In this post my summary of a book by Lyndon LaRouche “[I]… About
Milton Friedman[/I]”; it’s more a history lesson on British
monetary policy destroying mankind than about Friedman, who won
the Nobel Prize for economics in 1976.
LaRouche also tries to give “his” ideas on sound economics,
based on Charles de Gaulle’s economic adviser Jacques Rueff, who
he had worked with, which I don’t subscribe to. It sounds to me
that his whole idea is investments and government spending to
“fix” the economy…
[B]Drugs, VOC, East-India[/B]
The British Empire was founded on the opium trade, as Kalimtgis,
Goldman, and Steinberg document in “[I]Dope, Inc.[/I]”:
HTML https://www.lawfulpath.com/forum/viewtopic.php?f=7&t=1366#p4968
The Jesuits reached the orient after the first Portuguese trade
and military inroads at the end of the sixteenth century. When
the Dutch drove the Portuguese out of Asian trade, they
negotiated with the Jesuits on the Chinese trade. The Dutch took
over the centuries-old dope-trading routes from the Portuguese,
including opium between Canton, China's key port city, and
Portuguese-controlled Macao.
The Dutch later negotiated an opium monopoly for north India
with the Jesuit-influenced Mogul court. The monopoly permitted
the Dutch to force Indian peasants to produce opium in exchange
for taxes paid to the Mogul court.
A century later, the Dutch were shipping more than 100 tons of
opium per year to Indonesia. The Dutch found opium "[I]a useful
means for breaking the moral resistance of Indonesians[/I]”. By
1659, the worldwide opium trade was second only to the spice
trade.
In 1601, the (English) East India Company was founded that was
dealing in opium by 1717. The East India Company only took over
the opium trade after the British military victories in India in
1757 that put Bengal under British rule.
In 1784, Lord Shelburne started the reorganisation that turned
the East India Company into a looting organisation, with the
help of the "free trade" flank against the US. This had been
proposed in 1772 in Adam Smith's supposed economic masterpiece
“[I]Wealth of Nations[/I]” in 1776.
Shelburne sent David Hume and Adam Smith to France for Jesuit
training and then paid to create a "theory" of free trade, which
meant the narcotics trade. The Jesuits continued the tradition
of the Delphic Cult of Apollo, which in turn drew on the
"secrets" of the priesthood of Babylon.
This "economical science" didn’t start with Smith and Bentham,
who worked for Shelburne, but with the Order of St. John's group
of pet intellectuals, the physiocrats, who rewrote Chinese
zero-growth economics, based on Chinese texts brought to Europe
by the Jesuits; like the work of Confucius and Mencius.
Scottish mafioso Henry Dundas, Pitt's secretary of state and an
early patron of Adam Smith, directed the Board of Control for
the East India Company, and in 1787 wrote a master plan to
extend the opium traffic into China.
In his Wealth of Nations, Smith urged the colonies to not enter
into manufacturing, and above all not to keep British goods out.
He wrote: [quote]Were the Americans either by combination or by
any other sort of violence, to stop the importation of European
manufactures and by this giving a monopoly to such of their own
countrymen as could manufacture the like goods, divert any
considerable part of the capital into this employment, they
would retard instead of accelerating the further increase in the
value of their annual produce, and would obstruct instead of
promoting the progress of their country toward real wealth and
greatness. This would be still more the case, were they to
attempt in the same manner to monopolize to themselves their
whole exportation trade.[/quote]
Britain used the the opium trade to conquer the USA. British
banking families, including the Barings, who had intermarried
with the Philadelphia Binghams, cut some Boston merchants in on
the lucrative dope traffic to China. In 1816, John Jacob Astor
was trading opium for the East India Company, and William
Hathaway Forbes, of Boston, even joined the founding board of
directors of the central opium bank, the Hongkong and Shanghai
Bank. The Cabots, Lodges, Forbes, Cunninghams, and other leading
Boston merchant families made their initial fortunes through
Russell and Co., whose principal business were African slaves
and opium to China.
The East India College at Haileyburg became the clearinghouse
for the next generation of British economists, including James
Mill, his son John Stuart Mill, David Ricardo, and Parson Thomas
Malthus. Jeremy Bentham was their intellectual leader until his
death in 1821. Pitt encouraged the 1798 publication of Malthus'
“[I]Essay on Population[/I], which argued for the extermination
of "useless eaters". John Maynard Keynes later praised Malthus'
Essay as "[I]a work of youthful genius[/I]"
Malthus became the Chair of History and Political Economy at
Haileyburg. A generation of Malthusians was put into controlling
positions for the opium traffic in Asia. In his 1819
“[I]Principles of Political Economy[/I]”, Malthus elaborated his
depopulation program into a zero-growth approach to economy.
India was basically a laboratory for zero-growth doctrines.
By the 1830s, opium was the largest commodity in international
trade.
Britain imported cotton from American plantations (which it
backed during the Civil War); turned into textiles in British
mills; and exported the textiles to India for opium- that was
then sold to China.
Because it was owned by the Crown, the East India Company
couldn’t trade opium in its own name. It used a set of
"cut-outs", intermediaries, who exported opium to China covertly
for the company. The East India Company used a network of
private dope traders to found the Hongkong and Shanghai Bank in
1864.
India depended on opium for 30% of its exports, most of it to
China. In British India, taxes on the opium trade provided
almost 20% of total government revenues by 1880. Gross revenues
from the opium traffic was about two thirds of the total exports
from Britain from 1840 to 1890.
By the end of the nineteenth century, Britain was importing 50%
more than it exported — £450 million in imports against £300
million in exports. It made up the difference through opium. In
1890, the value of the British opium revenues in China alone
equalled the entire home trade deficit!
[B]Fabian Scoiety, Vienna, Chicago – zero growth in the 20th
century[/B]
In a nice Orwellian twist, British "free trade" really means
trade warfare.
In 1892, the University of Chicago was started as the chief
American project of the Fabian Society. It incorporated both the
"right-wing" economics of the Cobden Clubs and Thorstein
Veblen's imitation of Ruskin-Morris socialism from the outset.
The new Chicago university, launched with funds from
Rockefeller, Schiff, and Field, transferred the Oxford economic
crookery to the shores of Lake Michigan. The Fabian Society’s
Beatrice Webb was its real founder.
One of John Ruskin’s students in economics, George Bernard Shaw,
founded the “anti-capitalist” Fabian Society with Sidney and
Beatrice Webb. Under the patronage of Opium War PM Lord
Palmerston, the Fabian leaders really followed Oxford economics.
Shaw beat the drum for the master race in “[I]Man and
Superman[/I]” (1901) long before Adolf Hitler arrived on the
scene.
In 1912, Wesley Clair Mitchell went to Vienna for additional
studies and shared Bohm-Bawerk's classroom with future Soviet
official Nikolai Bukharin. In 1914, Mitchell tried to prove that
inflation and depression are "[I]not disruptions . . . but
fluctuations systematically generated by economic organization
itself[/I]". Mitchell forgot to mention that every American
depression until the Panic of 1907 was the direct result of
contractions in loans available on the London market. Mitchell
helped to draft the “Report of the National Monetary Commission”
that became the Federal Reserve Act of 1913.
On the advice of banker Paul Warburg, Father of the Federal
Reserve, President Woodrow Wilson named Bernard Baruch to create
a War Industries Board, with powers similar to the present
Federal Emergency Management Agency (FEMA). Bernard, grandson of
B'nai B'rith founder Kuntner Baruch, was attorney for the
Anglo-American Guggenheim firm and a personal friend of Winston
Churchill.
[B]Mont Pelerin – right wing Fabians[/B]
The Austrian School of monetarists later joined forces with
Chicago in the Mont Pelerin Society and included Friedrich von
Hayek and Ludwig von Mises. These products of the Viennese
salons trained Milton Friedman's teachers, including the founder
of the National Bureau of Economic Research, Wesley Clair
Mitchell. Mitchell and his pupil, Milton Friedman, are really
right-wing Fabians.
When Friedrich von Hayek gave the inaugural address of the Mont
Pelerin Society in 1947, in his audience were most of Wesley
Mitchell's boys: George Stigler, Henry Simons, Chicago professor
Aaron Director and Milton Friedman (Director's brother-in-law).
The Mont Pelerin Society is never even mentioned in the
newspapers but wields enormous power over the right wing of US
politics. The Mont Pelerin Society is merely the economic arm of
the "political" Pan-Europea Union that was co-founded by Otto
von Habsburg. One of Von Habsburg's closest friends in the Mont
Pelerin Society is William F. Buckley, Friedman's close
collaborator throughout the 1960s.
Another Von Habsburg associate was the Nazis' puppet PM in
wartime Hungary, Ferenc Nagy, who later founded the terrorist
organisation Permindex (that was probably involved in the
assassination of JFK).
In 1939, Von Hayek had already brought together the core for the
Mont Pelerin Society under the name "Society for the Renovation
of Liberalism".
In 1943, Von Hayek wrote the Mont Pelerin Society's founding
document “[I]The Road to Serfdom[/I]” in London. On the surface,
Von Hayek shows the same concern for "individual liberty"
against the "tyranny of the state" of Friedman, but behind the
facade the policy recommendations lead to “serfdom” similar to
feudal Europe.
In 1946, Abba Lerner published “[I]The Economics of
Control[/I]”, advocating the totalitarian state in which the
state controls each facet of economic life. Milton Friedman
himself argued that Lerner's totalitarianism was only the mirror
image of his own economics, that: "[I]totalitarian direction
might achieve the same allocation of resources as a free price
system[/I]" and achieve "[I]a reasonable approximation of the
economic optimum[/I]".
Mont Pelerin's European headquarters is directed by its
secretary, Max von Thurn und Taxis, and by its president,
Friedrich von Hayek. Von Hayek and Archduke Otto von Habsburg
direct Mont Pelerin's German-speaking branch.
Milton Friedman became vice-president of Mont Pelerin. The Mont
Pelerin Society's operatives infiltrate every “conservative”
American institution. Besides Milton Friedman:
George Stigler of the University of Chicago, President of Mont
Pelerin in 1980;
Glenn Campbell, and Martin Anderson, respectively director and
economist of the Hoover Institution and both advisers to Ronald
Reagan;
Robert M. Bleiberg, Barron's Magazine editor;
William F. Buckley, Jr., National Review editor;
Donald Kemmerer and John Exter, respectively president and board
member of the National Committee on Monetary Reform;
Edward H. Levi, former US attorney general and Chicago
professor;
Edwin McDowell, Wall Street Journal columnist;
Edwin J. Feulner, Jr., Heritage Foundation director;
William J. Baroody, Sr., American Enterprise Institute
president.
The Marshall Plan's official target was to reduce European
imports from the US from $3 billion in 1938 to $2.7 billion for
1952-1953 and $6.7 billion in 1947.
Under the direction of British treasury official Sir Eric Roll,
Harlan Cleveland (in 1980, chairman of the Aspen Institute), and
George Kennan's State Department planners, the Marshall Plan
reduced America's exports to trifling levels compared to those
of other industrial countries. Britain made the US into a
rentier instead of an industrial power.
[B]From Nixon to Carter and Reagan[/B]
Milton Friedman pushed Richard Nixon into a disastrous money
crunch in 1969, throwing the economy into recession and forcing
the US to sever the dollar's link to gold, which Friedman had
lobbied for.
In 1968, Friedman justified the floating rates regime on purely
military grounds: [quote]A really serious rearmament drive is
almost certain to produce inflationary pressure, differing in
degree from country to country because of differences in fiscal
structures, monetary systems, temper of the people, the size of
the rearmament effort, etc. With rigid exchange rates, these
divergent pressures introduce strains and stresses that are
likely to interfere with the armament effort.
Each of these steps is within the unilateral control of the U.S.
No other country can by its action prevent us from taking
them.[/quote]
Friedman stopped monetary growth from June 1969 to December
1969, and the economy collapsed. Starting in the summer of 1969,
industrial production fell, and unemployment rose from 3.5% in
1969 to 5% in May 1970.
On 15 August 1971, Nixon continued the Friedman program with the
addition of the wage-price controls demanded by "populist
monetarist" Henry Reuss.
In August 1971, to the disbelieve of some Europeans, Nixon took
Friedman's advice, to set the dollar “free” at the urging of
then Undersecretary of the Treasury Paul Volcker.
Ironically the US payments deficit didn’t benefit the US, but
London as dollars were flowing to the Eurodollar market through
British banks, which eventually grew to over $1 trillion, and
gave the bankrupt City of London a new life.
In the 1950s, the “great” City of London was virtually a ghost
town, where less than a dozen foreign banks did business. But
after in 1962, Anglophile Secretary of the Treasury C. Douglas
Dillon and his Undersecretary Robert V. Roosa, presented the
British with the “Interest Equalization Tax” that penalised
American loans to foreigners and made it more lucrative to hold
dollars in London than in New York.
See how “real” net investments in the 10 years since 1969 became
negative.
Figure 10 - Productive fixed investment
[IMG]
HTML https://i.postimg.cc/W1ZcGz7Q/Larouche-investment-1980.png[/img]
From March 1979 to March 1980, Americans lost 8% of their
purchasing power - the largest drop in real income levels since
the Great Depression.
Instead of the forecast of a $40 billion deficit this fiscal
year and a $16 billion surplus next fiscal year by the Carter
administration, the Treasury now officially projects a $100
billion deficit in the 2 fiscal years, not counting an
additional $80 billion in so-called “off-budget” borrowing.
[B]Chile – who needs food?[/B]
Milton Friedman once explained on his “cure” for Chile: “[I]My
only concern is that they push it long and hard enough[/I]”.
Chile was made into a creditors' dictatorship. Between the coup
in 1973 and the beginning of 1979, Chile's annual payment of
debt service to international banks rose from $200 million
annually to $1.6 billion. The Pinochet regime saved a lot of
money (for the bankers) by eliminating food imports, effectively
reducing average caloric consumption to less than 1,200 calories
per day by 1975. In 1976, average per capita food consumption in
Chile was about the same as it was in Nazi concentration camps.
In 1976, the Organization of American States reported:
[quote]Its most dramatic consequences are observed in the
psycho-motor development of children. The spirit saddens to see
a two-year-old seated on the ground, scarcely able to keep its
balance. It cannot smile, or play, or look at its hands; it
cannot stand, much less walk or speak.[/quote]
In 1977, unemployment had reached 20% officially and more than
40% unofficially. Gross Domestic Product never recovered from
the 13% fall that occurred in 1975 alone. Real wages fell in
1974 to a little more than half of 1971. In 1978, agricultural
production was down 27%.
The Chicago Boys did score "successes": reduction of government
expenditure from 15.8% of national consumption in 1972 to 12.1%
in 1977. All the more impressive as consumption fell sharply in
that period. And, of course, continued monetary austerity will
produce a lower rate of inflation, in the same way that holding
an influenza patient's head under water will ultimately “cure”
influenza.
[B]Adviser to British PM Thatcher[/B]
Milton Friedman also became the official adviser to the
government of Margaret Thatcher in Britain.
In the single year, since Queen Elizabeth selected Thatcher as
PM, the Bank of England brought money supply growth down from
15% to 7% per year, at the direction of Mont Pelerin Society
members Geoffrey Howe and his deputy, John Biffen.
The result was completely the opposite of what they and Friedman
had predicted, in a single year: Britain's rate of inflation
rose from 6% to 22% and the industrial production index fell
from 108.2 to 98.1. British living standards fell by a sharper
margin than during the 1930s.
Milton Friedman's money crunch accomplished to drive up the cost
structure of industry, including pay increases to workers (lower
than inflation of course).
A good analogy of Friedman’s method is the following
hypothetical case of a loan-sharking victim. A person with
$20,000 earned income incurs $5,000 in debt service payment
obligations to a loan shark. Unable to pay all of the $5,000,
the victim "refinances" $2,000 of the debt service payment at 50
percent effective annual interest. He pays the $1,000 instead of
the $2,000 portion of the $5,000; a total of $4,000. The
following year, he owes $6,000 in current debt service, instead
of $5,000. The next year $7,000, and so forth.
Figure 6 - Productivity and total debt
[IMG]
HTML https://i.postimg.cc/SKpFD4Tj/Larouche-government-debt-1980.png[/img]
Lyndon H. LaRouche, Jr. and David P. Goldman – [I]The Ugly Truth
About Milton Friedman[/I] (1980):
HTML https://archive.org/stream/the_ugly_truth_about_milton_friedman/theUglyTruthAboutMiltonFriedman_djvu.txt
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