Operation Disclosure | By David Lifschultz, Contributing Writer September 29, 2020 DOLLAR DOOM There is nothing inevitable about anything u...
Operation Disclosure | By David Lifschultz, Contributing Writer
September 29, 2020
DOLLAR DOOM
There is nothing inevitable about anything unless Heaven issues the decree. If the US follows prudent policies, the dollar does have to be allowed adjust by floating to its intrinsic value which is far below today to draw back our industry from foreign nations. What has happened is that foreign nations have bought the dollar to hold it up so that they could dump their manufactured goods on the United States. This is particularly true of Japan whom we allowed to do this to build them up against China after World War Two while we allowed the Germans to rig the dollar upward so that we could build them up against Russia as part of our policy of containment of Russia and China. The same principle was applied to South Korea. This was the foundation of NATO, SEATO and the EU.
The total debacle of World War Two came about as we fought Germany and Japan to prevent them from holding hands after defeating Europe and China thereby controlling the Eurasian land mass only to find in 1949 that the Russians and the Chinese held hands controlling the very land mass that we had fought Germany and Japan over. We essentially created the vacuum that Russia and China moved into. It was a colossal blunder.
This was realized in this exchange between Goering and Hitler:
Goring: They (Britain and America) entered the war so that we would not reach the east (Japan in China), but not so the East (Russia) would reach the Atlantic.
Hitler: That's quite clear.
Source: "Hitler And His Generals", the stenographic record of military conferences, page 649.
And by Stalin:
We (Milovan Djilas and Stalin) stopped on our way to the dining room to view a map on the wall of the world where the Russia was colored in red. Stalin waved his hand over Russia and said: "They (the US and Britain) will never accept the idea of such a great space should be red, never, never!"
"Conversations with Stalin" by Milovan Djilas, page 74.
In other words, the United States lost World War Two whose sole purpose was to prevent the Eurasian heartland from going under the control of antagonistic powers only to find themselves that way in 1949. This war was not fought against National Socialism or Japanese fascism, but purely over the geopolitical balance of power concept of Halford Mackinder.
The US President Franklin Roosevelt, a student of the naval geopolitician Alfred Thayer Mahan, sent notes to Stalin and Hitler weeks before the invasion of Russia took place saying that if Russia invaded Germany the US would side with Germany and if Germany invaded Russia the US would side with Russia. This is pure Mahan-Mackinder geopolitical thinking. That is why Stalin said before June 22, 1941 that he had complied with all agreements with Germany which was for Roosevelt's benefit as Stalin was aware from Richard Sorge that Germany was about to attack Russia on that date which was the anniversary of Napoleon's invasion of Russia. He wanted Roosevelt to know that he had complied with the "Molotov-Ribbentrop Pact" in every way and was innocent. The trains from Russia carrying natural resources for Germany were traveling to Germany that day.
The US got the message and was then set on moving against Germany going through the back door of Japan. On July 25, 1941 when the US military thought that Russia was about to fall, Roosevelt urgently moved to cut off 92% of the Japanese oil in the hopes that Japan would counter this act of war by an attack on the US so the US could enter the war on the side of Russia to save it. It was not that the US loved Russia but feared the power of Germany and Japan controlling the Eurasian heartland which according to Mackinder was tantamount to the control of the world. The US would use the back door of Japan to enter the war against Germany as it was believed that Germany had a secret agreement with Japan to enter the war if they went to war with the US. This was why Roosevelt would not notify Admiral Kimmel in Hawaii of the coming Japanese attack on December 7, 1941as the US had broken the Japanese military naval codes revealing this. The reasoning here was that if Kimmel prepared for the attack the Japanese would call it off based on local spies as they wanted total surprise as at their attack on Port Arthur on February 8, 1904 in the Japanese attack on Russia. This would have frustrated Roosevelt's goal to enter the war against Germany. As on the 9-11 false flag operation where 2,911 died to create a justification for wars to secure the US oil supply in the Middle East by blaming Islam for an attack that they had no part of wheres at Pearl Harbor over 2,403 US soldiers died less 68 civilians to achieve this geopolitical goal. 9-11 was another Gulf of Tonkin.
When Stalin and Mao later joined hands over the ruins of World War Two, the reaction in the US was McCarthyism not really based on anti-communism that McCathy's Chief Counsel Roy Cohen described to me merely as a passing fad, but a shift in the balance of power against the United States.
The protege of Halford Mackinder in the United States was Nicholas J. Spykman who is regarded as the godfather of containment as outlined in his book in 1942 entitled: "America's Strategy in World Politics. The United States and the Balance of Power" which explains the guiding principle of the United States in World War Two as follows:
"The statesman who conducts foreign policy can concern himself with the values of justice, fairness, and tolerance only to the extent that they contribute to or do not interfere with the power objective. They can be used instrumentally as moral justification for the power quest, but they must be discarded the moment their application brings weakness. The search for power is not made for the achievement of moral values; moral values are used to facilitate the attainment of power." (Page 18)
This amoral idea is not new to modern times as Thucydides points out:
"We both alike know that into the discussion of human affairs the question of justice only enters where the pressure of necessity is equal, and that the powerful exact what they can, and the weak grant what they must.
It is this amoral view that led to the fall of England as expressed by Lord Palmerston below and now leading to the fall of the US:
We have no eternal allies, and we have no perpetual enemies. Our interests are eternal and perpetual, and those interests it is our duty to follow.
speech, House of Commons, 1 March 1848
As Napoleon said, the moral is to the material in war as three is to one. Or as Queen Victoria expressed it when she said that the great power of England was solely due to their adherence to the King James Bible. England has fallen as a world power because it abandoned all morality just as the US is falling.
The US entered World War One for geopolitical reasons for after Germany defeated Russia it could not allow Germany to overrun Europe. This would give most of the Eurasian land mass to Germany which could not be tolerated. It had nothing to do with making the world safe for democracy which was the propaganda model of Edward Bernays just as the war against Germany in World War Two had nothing to do with National Socialism. The cold war against communism had nothing to do with communism but with breaking the power of China and Russia who controlled too much of the Eurasian land mass. Thus, they had to be contained and defeated.
When China opened up to the US in 1972, Richard Nixon, an old McCarthy hand, ran to China to ally against Russia though Chairman Mao represented a pure form of communism. We have outlined this history in the footnote one but in summary we defeated Russia who collapsed in 1991 with Chinese help. Today when China has moved close to Russia for their natural resources, China has become an enemy again for geopolitical reasons as in the days of Mao and Stalin. The US wants the Russian natural resources for Europe under a Russia that US controls through the oligarchs which is why it has not yet agreed to Kissinger's balance of power idea of playing Russia off against China, and to force China to obtain their natural resources by ship so it can control China through its rule of the waves with eleven carrier task forces.
The problem with the military-industrial complex in the United States is that they agreed after World War Two to sacrifice the major industries of the US by allowing rigged currencies to build up our allies which has essentially destroyed the very basis of the US geopolitical power. This was pure madness. This is happening right now as their paid off representative General Mattis decries Trumps attacks on Germany and Japan over currency rigging as treason to our geopolitical goals against China and Russia. Thus, the military-industrial complex, the seventeen intelligence agencies, the FBI and the other apparatuses of the deep state are trying to destroy President Trump for that reason. Clapper and Brennan consider themselves as doing their duty. Wall Street chimes in with their controlled media as Trump wants to end the currency rigging which is so profitable to the Wall Street financiers that rig just about everything including half the trades on the New York Stock Exchange that are part of the systemic trading linked to the cash settlement manipulation that loots trillions of dollars from the Americans.
My recommendation from forty years ago to preserve American industry was repudiated by Wall Street influence on the deep state. I was there to witness it and tried to prevent it. Even though I knew this correspondence below in 1997 would not be accepted, and Mr. Rubin had merely been kicked up to the Treasury position as his usefulness to Goldman Sachs was over after the Milken era as he was utterly incompetent, he ran to number one in fear. I received a call asking why I had written this correspondence from number one, and I said it will be useful to me at some date in the future as now. It is a tragedy that Wall St. has destroyed the industrial power of the United States by supporting the rigging of the dollar upward to make foreign goods cheaper to sacrifice American industry. Mitt Romney at Bain Capital made a fortune out of buying US manufacturing companies, laying off the Americans, and sending the factories to Asia. Here is the exchange of correspondence with the then Secretary of the Treasury Robert E. Rubin.
Robert Rubin Correspondence – David Lifschultz
I worked with Chuck Schumer when he was a Congressman organizing the Republicans and he organizing the Democrats to block an IMF appropriation in the House of Representatives using it as a tool against currency rigging. It created fear around the world that the jig was up as to currency rigging. However, number one called him and he dropped out. He was being groomed for better things. The point here, though, is that number one or what they call the deep state controls both the Republicans and Democrats, the corrupt Supreme Court, the corrupt Congress, and the corrupt presidents before Trump except Andrew Jackson and except Donald Trump. Donald Trump and I were once boxed into a corner by a partnership we were in that had political ramifications and he called me saying that this is the system at work and you have to work within it. It was not too different to the currency rigging. What he did not know was that I was about forty levels above the system than he was. What Donald Trump has to do as Andrew Jackson is act for America by stopping the illegal immigration destroying the American wage base, stop the currency rigging, and create detente with Russia and China which gave him the election in 2016. Americans do not want war; they want good jobs.
Schumer Warns Trump: Intel Community Has Many Ways to 'Get Back at You' (FLASHBACK)
In footnote two we add the dimension of the discussion the control of the deep state by international finance as the predominate force in world affairs for the past 250 years.
Dollar doomed as China shifts to consumption
A changing US-China relationship means a forex correction is the only way to rectify the imbalance
By UWE PARPART And DAVID P. GOLDMAN SEPTEMBER 20, 2020
Morgan Stanley’s former Asia Chairman Stephen Roach and Bridgewater founder Ray Dalio, among others, have recently warned that the US dollar may lose a third of its value. A chronically low savings rate, a large current account deficit and a huge federal financing requirement, Roach argued, will force a sharp devaluation of the US currency.
Declining empires and declining currencies stumble along until something comes along to put them out of their misery. Post-WW2 Britain is a case in point. Once the dominant world power, it issued the world’s main reserve currency and ran a chronic current account deficit. It allowed its industrial base to deteriorate and its skills to stagnate. The market for British assets eventually cleared as the British pound fell by almost two-thirds between 1967 and 1985.
Without a fundamental change in Washington’s attitude towards US industry and technology, something like this will happen to the dollar as well.
Today’s challenger is China.
From 8.28 to the US dollar prior to 2005, the Chinese yuan rose to just above 6.0 by 2014. It’s hit some turbulence since then. But a look at the US and Chinese currencies’ fundamentals shows that the recent march from 7.15 to 6.75 will have staying power and lead 6.00 in the medium term, in the course of 2021. The longer-term target is a 30% rise to 5.00.
The symbiosis between the US and China that pundits used to call “Chimerica” is dissolving, and the result of this dissolution will be a drastic depreciation of the US dollar.
The world’s two largest economies enjoyed (or suffered from) a symbiotic relationship during the past three decades. China saved and invested, America borrowed and consumed. China (and South Korea, Japan and Taiwan) built the plant and equipment that produced the industrial products that America consumed.
China’s high savings rate created a chronically high current account surplus, while the United States had an extremely low savings rate and a correspondingly large current account deficit. China wanted to accumulate reserves and the United States wanted to buy consumer goods. The reserve-currency status of the dollar drew China’s savings into US capital markets.
China and America in key respects thus are mirror images of each other. The rise in China’s national savings rate was matched by a decline in America’s national savings rate.
Household consumption forms a larger proportion of GDP in the US than in any other big industrial country except Britain, at 70% of GDP compared to an OECD average of 60% of GDP.
China’s desire to save and America’s desire to spend created “Chimerica,” or what one might call American capitalism with Chinese characteristics.
America made a decision not to invest, and Asia (China, S. Korea, Taiwan and Japan) did the investing for America.
Prompted by the deterioration in US-Chinese relations as well as domestic political considerations, China is shifting towards a regime of lower savings and higher consumption. That requires a corresponding structural change in the other half of Chimerica which, however, the United States is ill-prepared to accomplish. That leaves the exchange rate as the only mechanism of adjustment.
First, let’s review the facts.
The capital intensity of China’s economy increased drastically during the past 40 years while the capital intensity of the US economy declined.
America’s GDP shifted towards consumption (70% of total vs. an OECD average of 60%):
As the US savings rate declined, the current account deficit widened.
The capital intensity of the Chinese and South Korean stock exchanges, correspondingly, increased while the capital intensity of the S&P 500 remained static.
The sudden collapse of household consumption and corresponding jump in the savings rate caused by the pandemic lockdown revealed the inherent fragility of an economy heavily skewed to consumption. Precautionary savings during the pandemic lockdowns raised the personal savings rate to a never-before-seen 18% of GDP, and the volume of savings doubled from the level prevailing during the 2010’s.
Gross private saving rose from $5 trillion to $8 trillion at an annual rate. Gross private investment meanwhile fell to a $3 trillion annual rate. The jump in the 2nd quarter savings rate, to be sure, corresponded to a 32% annualized rate of GDP decline.
The American economy collapsed at an unprecedented rate when American households stopped spending. To compensate for the jump in saving, the Treasury and Federal Reserve dis-saved by spending trillions of dollars on income subsidies and direct purchases of securities. This had the same effect as pumping air into a leaky balloon. The massive increasing in Federal spending and the expansion of the Federal Reserve balance sheet restored part of the lost consumption (still running about 6% below 2019 levels), without contributing in any way to future economic activity.
Domestic savings and the Fed balanced sheet financed the flood of Treasury debt issuance, unlike the situation after the 2008 crisis, when foreign investors increased their holdings of US Treasuries.
The US can’t sustain a high savings rate without a severe decline in economic activity. Meanwhile government dis-saving will remain extremely high. The willingness and capacity of foreigners to send savings to the US has diminished. Something has to change, and that something is the exchange rate: US assets have to cheapen sufficiently for foreigners to buy them. Rising inflation also will motivate higher savings (as wealth declines, individuals save more to compensate).
A decline in China’s propensity to save implies that the United States must save more. As noted, that is exactly what American households and corporations did at the outset of the pandemic lockdown. But household savings was counterbalanced by government dis-saving. The US is suffering from a version of the “Red Queen effect,” as in Alice in Wonderland: It has to spend faster just to remain where it is.
In principle, the United States could introduce incentives for high tech investment (tax breaks for capital-intensive industries, R&D tax credits and subsidies, and so forth) to make capital assets more attractive and encourage savings for the purpose of investment. This sort of approach doesn’t appear to be on the agenda of either political party.
The other way to correct the savings deficit is through dollar devaluation and inflation. A cheaper dollar will reduce consumption by increasing the price of imported consumer goods, including the consumer electronics that comprise the lion’s share of America’s imports from China. It will also reduce the price of American capital assets including Treasury securities, and encourage foreigners to buy them – after the dollar hits bottom. Inflation, as Prof. Robert Mundell observed in a classic 1965 article, also prompts individuals to save more, because it reduces their wealth, leading them to save more to compensate.
That’s why a devaluation of the dollar on the scale of the long, sickening slide of the British pound, currency of a Britain once Great, is the predictable fate of the US dollar.
Footnote One:
CLASS WARFARE IN THE US
DAVID K. LIFSCHULTZ
As we wrote in the "Introduction to Goethe, Faust and the Euro" in footnote one, the US foreign and commercial policy is tied to geopolitical objectives. The build up of China from 1972 was to oppose Russia which did not matter even if it wiped out American jobs, and now that China and Russia are allies as of 2014, the US wants to move the Chinese production for the US and other markets to South America. It is not that the US cares about the people of South America because they do not little wonder when it does not even care about its own people.
The Wall Streeters Class hatred against its own lower classes is exemplified by the attack on the Middle Class and lower classes by offshoring US industries and importing like blocks of stock third world bodies to man the few factories that are left whose supply drives down the American wage. We have not seen such class hatred in the Anglo-Saxon world since the Enclosure Movement in England in the 19th century when the aristocracy cast their peasants off to the cities when they converted their estates from agricultural farming to raising sheep for the textile industry. This was the squalor of the then greatest nation in the world where the upper class luxury was contrasted by Charles Dickens to the squalor the English inner cities. Where did all the money go from the increase in industrial productivity? Not to the displaced peasants.
What we see in the new US initiative for South America is an effort to move production from China to South America as merely a change in venue. There is not the slightest consideration for moving the jobs back to the United States. The move of manufacturing to South America is to geopolitically block Chinese inroads in South America already quite extensive in themselves as well as to close the supply chain in China itself.
This ties into our manipulated currencies where the dollar is kept strong so that it can import cars from Germany, etc. while Germany destroys the industrial infrastructure of our own nation. These German cars should be made in the US as our others based on 100% of the content made here. The US military industrial complex supported this policy by maintaining the German car imports to please our ally at our expense. in their opposition to Russia. It was pure folly.
Robert Rubin Correspondence – David Lifschultz
The trade war against China is senseless as a balanced of trade between the US and China could have been worked out as originally planned, but now we face the trade deficit growing even larger as China is merely replaced by South America. The US Military Industrial Complex is proving itself to be self-destructive.
Footnote Two:
The essay below proves that the US has never been in a war about true idealism but power.
AN INTRODUCTION TO GOETHE, FAUST AND THE EURO
DAVID K. LIFSCHULTZ
The precipitous and calamitous decline in US power from its undisputed peak as the sole world hegemon in 1991 on the collapse of the Soviet Union has to be marked as one of the greatest turning points in history. We demonstrate this both in the military analysis included in this paper and the study of the dying United States dollar. We follow in this study the classical authorities and some of the key points in Carroll Quigley's "Tragedy and Hope".
It may not appear to most observers that this has happened as it did not appear that the greatest army in the world in France that had held back the Germans in World War One would collapse in 1940 in twenty days. Just for the reader's information, the nations of the EU today, or NATO, would not last two weeks against the Russian shock armies as that is how long it would take them to reach the English Channel as the preponderant US airpower would be nullified in ten minutes by Russian missiles destroying the NATO airfields. Tsar Alexander I accomplished this against Napoleon though it took Alexander I longer.
How did this Russian rearmament come about? This answer will require a short excursion into history. Anglo-Saxons have followed the Roman tradition of balance of power as their schools taught Latin and Roman history. This has nothing to do with morality even though Queen Victoria rightly said that the King James Version of the Bible was the source of all the British power. It is interesting to note that the English abandonment of the Bible is the primary source of their decline of power. Anglo-Saxon foreign policy was rather guided by the balance of power under the ethics of Lord Palmerston when he said:
"We have no eternal allies, and we have no perpetual enemies. Our interests are eternal and perpetual, and those interests it is our duty to follow."
The Anglo-Saxons engineered the war between Russia and Germany in World War One to destroy Russia though Russia was an ally of the Anglo-Saxons (US and England). England was afraid of Russia moving to India which would have been indefensible for England to protect from a million man land army based simply on the problem logistics. England's other problem was Kaiser Wilhelm who started to build a fleet threatening the English control of the oceans. It was decided to kill two birds with one stone by World War One. The utter defeat of Germany and Russia pleased His Majesty's government. It was a total victory.
The rise of Stalin's Russia worried England after World War One and so it was decided again to nullify Russia by building up Germany for another go at it. Stalin was an extraordinarily capable and cagey operative who had been spying on the Bolsheviks as an Okhrana agent under Pyotr Rachovsky and was swept along in the Bolshevik Revolution. He had liquidated by 1938 all the Trotskyites who had massacred the Tsar, his family and the royalists. If the Chief Prosecutor Andrei Vishinsky's denunciation of the Trotskyites during the Moscow Treason Trials between 1936-1938 are read, it is found to be almost Biblical in their tenor which can be attributed to the studies by Stalin in Seminary until he was twenty. He taught in the public schools the holy Christian concept of marriage of Saint Augustin restricting the marital act only to procreation and all children were to taught to avoid all forms of onanism. You will not find anything of this kind in the writings of the bloodthirsty guttersnipe Trotsky.
When Hitler took over in Germany in 1933 the United States and England following their balance of power doctrine lent Germany one billion gold dollars from the US and two billion gold dollars from England which today is in excess of 300 billion fiat dollars if not more. This was to build Germany up against Russia and at the Munich Conference Stalin was not invited as it was designed to build Germany up and was hardly a form of appeasement. The goal once again was to see Germany and Russia destroy themselves. Stalin clearly saw this and allied with Germany in 1939. England was shocked.
While the truth about the Hess trip to England has not been revealed, the English clandestine overtures to Germany were to encourage them to invade Poland and then Russia. This is why the English and French Armies were idle allowing Germany to concentrate all its forces against Poland leaving a light screen of troops on the border facing the British and French troops. If Britain and France had invaded Germany as they promised, the German Army would have been split in half.
The problem the Anglo-Saxons faced after World War Two was that Stalin's Russia was not destroyed as the Tsar's, and Stalin controlled Eastern Europe and by 1949 was allied with China shifting the balance of power against the Anglo-Saxon nations. In essence the Anglo-Saxons has lost World War Two for instead of Germany and Japan controlling the Eurasian land mass it looked to be Russia and China. George Washington's "Farewell Address" that the US should not get involved in European conflicts was proving true.
This was a total and costly fiasco.
The Anglo-Saxon reaction was to adopt a policy of containment seen in the Korean and Vietnam Wars, and reversing course on their German vilification campaign to bring them in as an ally against Russia to balance the power and the German's obliged based on the end of their vilification. Hence NATO was formed and the Russians formed the Warsaw Pact on the other side. Russia's eastern boundary was secured by their ally China. Stalin's death wrecked Russia as a group of nonentities took over, and Chairman Mao could not stand the buffoon Khrushchev. Sino-Russian relations went from bad to worse after Khrushchev's denunciation of Stalin in 1956. By 1972 the border conflict almost had led to war and the anti-communist McCarthyite Richard Nixon ran to Beijing to embrace Chairman Mao as an ally against Russia.
Let's pause for a moment to ponder this. Here was a fervent anti-communist embracing a very pure form of communism in China which tells us that communism or national socialism had nothing to do with World War Two, nor did making the world safe for democracy have anything to do with World War One, but purely balance of power ideas of Halford MacKinder combined with the creed of Lord Palmerston. The gullible masses who were hated as cattle were to be the cannon fodder fed by the propaganda of Edward Bernays manufacturing of consent with the usual lies as in the coronavirus.
Once Nixon had his alliance with China sealed, the strategic significance of Vietnam was over, and we abandoned the place in 1973. Now China was an ally and we tried to strengthen them against Russia. But it was not until Deng Xiaoping took over that China accepted the terms of our massive build up. The US switched from Japan who was allowed to go sideways and built up China. Japan was no longer important to contain China who was now our ally against Russia. Japan was superfluous.
We taught China how to use their central bank to finance only productive investment as Dr. Schacht did for us in Germany when we built them up, and allowed China to take over our US market from Japan. We built up China to be the largest economy in the world. In the meantime, Russia looked with horror at China and had 400,000 troops tied up at the border. They were bleeding when Jimmy Carter took over.
Carter was a quite underestimated President in this sense. He did not initiate any wars for the US. He and Brzezinski decided to give Russia a Vietnam in Afghanistan to destroy Russia and in 1979 this program was launched. It was a Roman war by proxy.. It was clever. Now Russia was draining by the Warsaw Pact for 600,000 troops, and 400,000 on the border of China, and now they were bleeding in Afghanistan. When Reagan takes over Casey was assigned to go to the Gulf States to order them to flood the world with oil driving oil to eight dollars a barrel to destroy half the Russian budget. That combined with the fictitious PYSOP Star Wars campaign, and Russia was going bankrupt. The display of advanced US weaponry in Gulf War One was the last straw for Russia. They lost their nerve and collapsed.
Here the US took the position that they would not accept Russia into the community of nations as the Prodigal Son in Luke as they publicly avowed but tear them apart into 50 countries run by oligarchs whose sole purpose was to supervise the looting of the oil and other natural resources and let the masses be damned as in the Ukraine.
The BND and the CIA fomented the Yugoslavian disorders in the 1990s Sudetenland style to weaken Russia further and bombed Belgrade for 78 days in 1999. Russia woke up from their delirium by this 1999 78 day bombing and moved to rearm. The first eight years were to develop offensive and defensive missiles and the next twelve were to include the modernizing of the army. This has largely taken place. The 2014 Kiev Coup was to draw them into another partisan war in the Ukraine as we did in Afghanistan. This time Russia did not bite only taking back the Crimea and the the coal states of Donbas and Luhansk.
When China saw this Kiev Coup it was quite obvious what the US was doing, and they became quite worried as they were a net importer of natural resources and Russia was the natural place to look for it. They did not want to lose Russia to the Euroland. Also, they were too dependent on the seas patrolled by 11 US carrier task forces and they needed to turn to the Eurasian land mass to divert their trade from the seas to land by high speed trains that could go from China to Europe in 48 hours. Russia could supply all their natural resources and they could supply all the technologies that Russia required. This was part of the vision of the BRI or Belt and Road Initiative. This required a rapprochement with Russia and an alliance. The United States could not accept this alliance out of balance of power fears, and this is the sole cause of the present friction between the US and China. This ends our short historical excursion.
Professor Quigley had two famous students who made their way in the world which were former President Clinton who praised him to the skies in his "Inaugural Address" and HRH Prince Turki al Faisal, the former head of Saudi Intelligence (Al Mukhabarat Al 'Ammah). In my conversations with Bill regarding Professor Quigley, he said that he followed Quigley's concept that technological advancement was the basis of the advance of all civilization as outlined in Quigley's book "The Evolution of Civilization" and this was the foundation of his entire political career. His greatest obstacle to achieving these goals was the institutional bias against change which he resolved by creating the dot.com era that Bill said he did not care if 99% of those companies went bankrupt as long as the 1% drove the United States economy forward. This approach worked amazingly well and Bill left the presidency with such giant budget surpluses there was fear that in no time that entire national debt that is now around 21 trillion dollars would be paid off. Even Arthur Laffer, the inventor of the Laffer Curve, in a recent debate sponsored by the Wall Street Journal, praised the former President as creating such great incentives to growth.
I had gone to school with Prince Turki at the Hun School of Princeton, and had flown to see him when he was Ambassador to London as the US was about to invade Iraq under George Bush II to see if we could work out a plan to stop the invasion, and my colleague held secret talks with Saddam Hussein and his generals offering them incentives and safe passage out of Iraq if they would turn over the country to a leader of our selection. This would have avoided the destabilization of the entire region as the destruction of the Sunni Iraq tilted the balance of power in the favor of Iran. Saddam and the generals agreed but later Saddam reneged. The generals withdrew at the siege of Baghdad which was therefore won relatively without cost and received their reward.
It looked as though President Clinton was establishing what Quigley called a reorganization of western civilization so that its dynamic growth could continue. In essence, Clinton found the US in a form of stagnation as the GDP growth figures were pure fiction based on the falsification of records where inflation was eliminated by removing from the CPI commodities or goods with rapidly rising prices with lower prices for supposedly comparable items. This falsification continues. The switch by George W. Bush to endless Islamic wars as planned far in advance of the 9-11 false flag operation created trillions of dollars of expenses diverting from productive growth to non-productive military appropriations for meaningless brush fire wars. We see this is in the industrial collapse in the rust belt and the debilitation of our infrastructure. All that Clinton created was destroyed. Bill bewailed to me that his work was needlessly being thrown away. And the United States continued on its path of ruin until President Trump began trying to rebuild the destroyed American industry by stopping the rigging of currencies as indicated next.
Robert Rubin Correspondence – David Lifschultz
Quigley in his introduction compares western civilization to others that have declined and fallen before it. In the case of the Canaanite civilization who descended from Noah's grandson through Ham the core or beginning of that civilization was located in and around Tyre and Sidon. Tyre was famous as a great seafaring power which was similar to later seafaring nations as Venice and England and now the United States. This Canaanite civilization in Tyre planted colonies in areas such as what became Carthage, and interestingly enough, Carthage grew to be a greater power than Tyre. I use that example as that was very similar to what happened with the colonies of England so as England declined as a great power its colony the United States surpassed it as Carthage had surpassed Tyre. Although Quigley does not attribute this to moral decline as he should but rather to the core (Tyre and England) diverting their time to pastimes as pleasure, art, ideas and leisure instead of material work, the non-core Puritanical United States focused only on work or materialism as pleasure was a form of sin to the Puritan founders of the US. Thus peripheral areas became militarily stronger than the original core civilizations.
Western civilization developed from the classical civilization of Greece (Elisha or Hellas) and Rome (Javan as in Ionian Sea) or the descendants of Japheth son of Noah, and the power initially started in Greece but transferred later to Rome (Tiras). The Europeans are descendants of Tiras and the Russians Meshech (Moscow, or Rosh Meshech as Russia-Moscovy as the center of Russia) the descendants of Japheth. This is western civilization. It incorporated the Bible that was transmitted to them by the descendants of Shem.
However, the United States is presently in a state of moral and material decline almost unprecedented in history. 70% of its 17 to 24 year olds are not fit to serve in the military largely based on the diffusion of drugs and vice as in Carthage. The Romans say they destroyed Carthage for moral reasons as it was given over to human sacrifice and sodomy which in a sense is proliferating in the west in the form of abortion and sodomy. These are signs of a massive, moral decline while power is starting to transfer to the Asian nations which are focusing mostly on the material aspects of western civilization. And the House of Representatives and Senate of the United States are acting as the Carthaginian Senate who undermined their greatest general Hannibal and are largely to blame for the irrational form of funding weapon procurement as in the twenty year F-35 whose 400 billion cost blueprints were hacked anyway by an adversary. This was paralleled in some of our history by the removal of General MacArthur from running the Korean War by a Pendergast mob frontman, and since then the calibre of our military leadership has been in a precipitous decline as no one with talent would like the mob telling him what to do as the monetary remuneration is no inducement to stay as it does not compete with industry or Wall Street. If the DIA or CIA or NSA have anyone of great talent, Google offers them a million dollars a year to come to them and off they go.
This is the introduction to the present work. It has been largely revised to cover the Quigley analysis in more detail from a previous work that we presented. Since the next exposition will demonstrate that the dollar is intrinsically worthless, it in necessary also to enter into a discussion of the waning military power of the United States which can no longer intimidate nations to use the dollar. The value in exchange of the dollar and its military power are thus inextricably connected.
Goethe, Faust and the Euro
by DAVID K. LIFSCHULTZ
We find Johann Wolfgang von Goethe’s Faust in his library in Germany around the late 18th century in a state of manic depression contemplating his forty years spent in the study of philosophy from the ancient Greeks and Romans to the the Schopenhauers, Hegels, and Kants of his day. He had nearly gone insane reading the Critique of Pure Reason and it suddenly had dawned on him that he had wasted his entire life drowned in books and that all his learning was worthless. Mephistopheles, the Devil, seeing his opportunity to prey on the spiritually weak, approached him to say all was not lost. He could make up for lost time, and offered him the most beautiful woman in the world (Margarete), and a paradise on earth with her at his side, and all that he had to do was sign over his soul on the dotted line contracting to deliver it up to him at the appointed time of his death. Our friend, Faust, tired and exhausted in studying the vain fruit of the tree of the knowledge of good and evil, decided to choose what he thought would be the new route to Paradise.
In this jolly period Dr. Faustus and Mephistopheles alighted on a Kingdom in Germany where the bankers in Frankfort had created a species or gold shortage, and thereby had induced a depression here in Holy Germany for the purpose of dominating or overthrowing this Christian Kingdom. The population was near to rioting in the streets as they were hungry, the country was is disrepair everywhere with buildings looking like they were going to crumble, and there was a distinct possibility of the King being overthrown after a thousand years of the monarchy.
Enter Dr. Faustus (Goethe) and Mephistopheles (Mayer A. Rothschild) into the King’s palace, and there they proposed the John Law remedy of paper money and credit to be created out of nothing to solve the problem of the Frankfurt gold manipulation. The King exclaimed that how could he sign off on a paper and currency that had no gold backing, and not be perceived as a fraud. Mephistopheles answered that they would put the King’s picture on the currency, and they would sign his name to the statement that the currency was backed by all the gold in the kingdom that had not yet been discovered and dug up, and that would solve whatever qualms the population might have had. The King said that it would never work and would not be the first King in his thousand year line of the Holy Roman Empire to have committed such a fraud.
Mephistopheles and Dr. Faustus then proposed a grand ball where all the beauties of the Kingdom would gather, and the liquor would flow profusely, and everyone would have a merry time. The King was plied with drink until he lost his senses, and they then put the paper currency decree into his hand, and he signed it. While the drinking celebrations lasted weeks, Mephistopheles was at work spreading the currency around and the Kingdom became prosperous and happy. Mephistopheles became the finance minister and central bank head, and coordinated with his kinfolk at other central banks. These were the same folks who had induced the depression in the first place so they could take over this kingdom that was holding out.
Nevertheless, finally the King sobered up, and in walking through the streets of his Kingdom he found that all had changed, and it was happy and prosperous. When he asked how it happened, and found it was due to his having signed the paper money and credit decree, he was furious. What a fraud, he cried. His wisest minister warned him that the new power transferred to the finance minister spelled the eventual doom of his throne, and would lead to the diabolical overthrow of the Christianity that he had sworn as monarch to support over all other things, and the total debasement of all womanhood in the Kingdom as was later seen in Holy Germany during the Weimar period. But Mephistopheles countered that it was too late, and that he would certainly be immediately overthrown if he withdrew the paper as the population was so happy and industrious. The King feared the consequences and relented.
Goethe summarized this series of events with the following poetic verse:
“I am fed up with this endless how and when,
if there is no money, let us make it then.”
And how this make believe paper works is the next part of this discussion.
“Paper money eventually returns to its intrinsic value – zero.” (Voltaire, 1694-1778)
The gold value of the dollar in 1920 was $20.67 and today an ounce is worth $1,683.86 or around 81 times more expensive or 1.228% of its earlier value. That is a 98.77% depreciation of the dollar in relation to gold.
Now, let's look at the CPI Index which is a little more optimistic giving it $3.48 in value:
Decreasing Purchasing Power of the U.S. Dollar: What's $10,000 in 1900 Worth Today?
If a shopper were magically transported from the year 1900 to 2012, the $100 bill that he had in his wallet in 1900 would now be worth only $3.48! That is, $100 in 2012 would have the purchasing power that $3.48 had in 1900; $10,000 would be worth only $348 today. That's a 96.4% decrease in buying power. Our shopper would consider current dollars virtually worthless. (Note: the calculations in the post were made using the inflation calculator introduced earlier this month.) This almost parallels the decline in relation to gold and it is worse than it looks as the CPI has been falsified by removing from it products whose price rises so much it starts to be substituted by other products. This skews the inflation rate downward. The dollar is almost all gone. The picture is worsens even more when you look at the gold behind the dollar using the unaudited gold reserves recorded to be Fort Knox and the New York Fed which are 8,133 tons or 260,370,000 ounces. If you divide these ounces into M-3 of 18 trillion you come to $69,132.38 an ounce.
It will be the fate of all paper and fiat credit systems that the monetary unit in such a vehicle will die. History is strewn with American Continentals or the French Assignats but the most curious part of the German hyperinflation which was largely caused by the overproduction of the fiat mark was that in 1923 what was left of it vaporized even though the money supply no longer was increasing. People stopped believing in it. What was even more curious was that Dr. Hjalmar Schacht created a new currency with nothing behind it and it maintained its value and he was consequently called the old wizard. Yet the Saigon currency after the North Vietnamese surrounded the city vaporized to zero. What happened to Milton Friedman's monetary theory of measured expansion or that of Keynes for that matter who thought digging for gold was as stupid as burying dollars and then digging them up? (See Keynes "General Theory" and Friedman's "Monetary History.") In each case the value that was thought to be there was what it was thought at the time to be and not what it was in reality. What this really represents really is a substitution of monetary transubstantiation making according to Karl Marx the jealous god of money in place of the Catholic transubstantiation.
Fiat money and usury are a social control mechanism that are founded on principles that according to Aristotle are against nature (Politica 1258b) in that they cannot create their own children and thus cannot create the interest to pay it back. For example, if I lend to a member of this audience the 176,300 tons of gold which is all that exists in the world, and ask for ten percent interest payable in principle and interest in a year, then the 176,300 tons of gold plus the 17,600 tons of interest cannot be paid in full as there is no gold in the world to pay the interest. In other words, the system based on gold and interest (usury) cannot work as it cannot pay the interest on the fully extended lending base. But even if we used paper, and people believed it was gold, the paper too cannot procreate. So once the money is fully lent out, then no further lending can take place nor can the interest be paid unless you hypothecate out of nothing additional paper or credit. The system would otherwise start an implosion if it were not continually hypothecated with additional credit or paper money. Such an implosion took place during the time of King Edward the Pious of England as the weaker creditors started to default first and then the stronger ones until the usurer had all the wealth of the kingdom without having done any real work. King Edward simply took all the money back from the usurers and expelled them from England hence he was known as the pious.
Dante placed the usurer in his seventh rung of Hell with the sodomist as the usurer made gold fruitful though it was not, and the sodomist made what was fruitful unfruitful. In other words it was natural to sow in the field to reap but sowing gold cannot produce an increase and the sodomist does not plow in a field where anything will grow. That is why it is against nature. He consigned both to the seventh rung of Hell for the sinners against nature and God as these sins are forbidden in the Bible. Shakespeare understood this in his play “The Merchant of Venice” in that Shylock says he makes gold fruitful like Laban’s flock that bore wages to Jacob of the ring streaked and spotted cattle but this could not make gold fruitful.
And Shylock tells us at the trial that he really wants the life of Signor Antonio because he was interfering with his control mechanism for ruling over the society for his lending without interest would drive his system of control out of business. It was through that control mechanism that Shylock controlled the state. He was offered by Bassanio ten times what was owed and refused for state control was more important than the multiple interest offered by Portia or the multiple principle offered by Bassanio. Therefore, he wanted Signor Antonio's death though the extraction of the pound of flesh that was already forfeited and not the money.
I would not recommend to the audience that anyone seek to interfere with this control mechanism as he would be striking at the roots of the control of the state of the present masters of the universe and these masters would react no differently than Shylock who wanted his pound of flesh as that would have ended the threat by slaying Signor Antonio the representative of the love your neighbor as thyself state. The Rothschilds and Barings as Lord Byron points out in his poem "Don Juan" replaced the sovereign monarchs of Europe as control shifted to those who controlled the creation and contraction of money (largely fiat) through the banking function usurping the right of kings as sovereigns to issue money (which should have been restricted to gold) and used the sin of usury as a control mechanism.
"It was through "the manipulation of the quantity and flow of money which enabled them to influence, if not control, governments on one side and industries on the other. To do this it was necessary to conceal, or even to mislead, both governments and people about the nature of money and its methods of operation. In 1909 Walter Rathenau, who controlled the German General Electric Company, said 'three hundred men, all of whom know each other (bankers or their agents), direct the economic destiny of Europe and choose their successors from among themselves.' It must not be felt that these heads of the world's chief central banks were themselves powers in world finance. They were not. Rather, they were the technicians and agents of the dominant investment bankers of their own countries, who had raised them up and were perfectly capable of throwing them down. The substantive financial powers (fiat money) of the world were in the hands of these investment bankers (Rothschild and Baring, etc. also called 'international' or 'merchant bankers' ) who remained largely behind the scenes in their own private unincorporated banks." (Quoted from Carroll Quigley's "Tragedy and Hope" published by MacMillan Publishers. When the deep state realized what MacMillan had done, they ordered them never to reprint this book and to destroy the plates.)
This is the so-called invisible hand of Adam Smith or his masters of the world replacing the royal monarchs. It was thought necessary in order to carry out this control to destroy the entire moral fabric of of Christian society. In this the Rothschilds were preeminent together with their lackey J. P. Morgan until about 1940 when the German Panzer Armies marched into Paris singing songs of hatred against usury. Baron Eduard de Rothschild, the erstwhile ruler of the world, fled to New York City. Plus ca change, plus c’est la meme chose or the more things change the more they stay the same.
Alfred Marshall, J. M, Keynes teacher at Cambridge, struggled with this Aristotelian fallacy in our monetary system and could not solve it. In other words, the gold or paper money cannot create its own liquidity for the interest to be repaid and requires a fraudulent hypothecation to keep it going. And as the monetary aggregates expand, it becomes more and more difficult to control them until they self-destruct from the inherent contradictions. He was the last one and there are no others who tried to tackle it since.
The control mechanism works like this. If we take the Euro central bank reserve of 1%, and the Euro is not backed by gold, and I have a billion in capital which I invest in my bank, then my bank will create a hundred billion of new money as it expands under a 1% reserve requirement. The equation is .01x equals a billion so x equals 100 billion. So from a billion in gold or fiat money is created a 100 billion. My goal is to make 10% profit on this money as it expands like an accordion through the EU fractional reserve system, and while interest rates vary, we will use this figure as a simple proxy. So I make ten billion a year out of my one billion in capital or ten percent of my now 100 billion. Now let’s say my neighbor is as rich as I am and invests a billion dollars in gold to build an automobile plant as Henry Ford, and makes a thirty percent profit, then he makes three hundred million dollars a year to my ten billion. He is just as capable and intelligent as I am but I have the fractional reserve banking system behind me. And I make absolutely nothing but money out of nothing. I have no inventory to keep. My wealth is a bookkeeping entry that everyone believes in. As I make ten billion a year in profit, I grow richer and richer. How can my Henry Ford neighbor keep up with me? I have to win the game.
And before you know it the Dukes of England with their grand estates are nothing compared to me. I came to England in 1798 and my family took over the whole country as I had all the money. As the Dukes lost their lands to me, I decorated my board with their graces (see Anthony Trollope’s “How We Live Now”). Even the Queen had to come to me when she needed money and I lent it to her (Proverbs 22:7). I became the master of the universe and the Queen became a figurehead (see “Coningsby” by Benjamin Disraeli). I declare on television that I am not accepted as an aristocrat despite my purchased title as I am only in this country five generations but what I don’t say is who cares. I am the ruler and that is all that counts.
Now, my friends, this is why gold cannot work. You cannot mine gold fast enough to cover all of the fiat credit that has been created out of nothing. Nor can the paper money keep up so I just have to make more of it under my system. As our Goethe says in Faust, I am fed up with this endless how and when, if there is no money, let us make it then. And so we have.
Now what is the real value of gold. If the United States has 8,133 tons of gold in Fort Knox (unaudited) which comes to 16,267,000 pounds. The pounds translate to 260,270,000 ounces. If I divide that by M-3 money supply, which is to divide the ounces into about 18 trillion dollars, then the gold backing for the dollar is $69,150.00 for each ounce. The quoted ounce today is around $1,683.86. $20.67 in 1920 used to be convertible into one ounce of gold. Now, what does this mean? It means that the fiat money and credit that has no value has supplanted the gold that has intrinsic value until at some future time the jig is up, and reality dawns on the masses as during the German hyperinflation or during the Saigon siege. It is then, and only then, that they will escape from their collective insanity.
I used this literary excursion, taking some liberties with the text, to introduce the discussion of the Euro for reasons which will be soon apparent. The goal of consolidating Europe into one state goes back in modern times to Napoleon Bonaparte’s Continental System whose goal was to create a system of Empire that was self-sufficient and would preserve within it its industrial capacity against the exports of Britain. Here we see a substitution of the Christian consolidating principles of the Holy Roman Empire being replaced by purely materialistic considerations. Napoleon was not the only one to see that you must preserve your own industries if you wish to have power, but Friedrich List wrote about it later in Germany and Alexander Hamilton about this time set up the United States with tariffs so that its industries would not be destroyed. Napoleon used his military genius to foster this system but was confounded in Russia as Germany over hundred years later in the early 1940s. Germany had sought to create a Eurasian Empire from France to Japan using Japan as a partner. Again, Britain in its traditional classical balance of power role, found allies in the United States and Russia to stymie this German project that would have shifted the balance of power against the Anglo-Saxon nations.
The Euro is a new effort led by Germany to achieve a new Continental System. It was Germany that pressed the Euroland nations to extend the Nato Alliance to Poland to protect its industrial investment in eastern Europe in direct violation of the agreements with the drunken Yeltsin. Germany’s foremost goal was to create this 18.292 trillion Euro common market and Euro currency as a direct competitor of the United States where it would finally have a similar market to scale its products. Germany would use the economies of scale of the European Union to destroy the US industry. Then, combined with their currency rigging, they would invade the United States wrecking what was left of their domestic industries that they and Japan had not already destroyed. It is for this reason we do not see Germany giving up on this dream just because a Portugal at 1.4% of Euroland in GDP, or Greece at 1.8% are having problems. (I have to revise my opinion on the longevity of the EU and Euro based on their present conflict with Russia for if it is not settled soon it may lead to the breakdown of the EU and the Euro.) These problems benefit Germany though it cries with crocodile tears of distress over the thought of subsidizing the weaker nations while its exports soar as the Euro falls while within the EU their manufacturing destroys their southern neighbours. These German export profits more than offset some lending to the states as Greece and Portugal that are in IMF tribulation.
If there are any problems here it is between the bank exposure of the main Euro nations in lending to the banks of Portugal and Greece, and they would be concerned with triggering another derivative crisis that happened when Lehman went down. The pulling of the plug at Lehman detonated parts of the 1.5 quadrillion derivatives which represent 17 times the world GDP of 88 trillion. I hold up before this august audience the June 23 article in the Financial Times on quantitative easing of the United States. There is a gigantic fact here that few really understand. It is the 4.434 trillion Federal Reserve Credit (7.1 trillion dollars today). At the time of the fall of Lehman there was only 900 billion of this credit built up from 1914, and in the three months following the Lehman catastrophe the Fed created one trillion in new credit, or a hundred years worth, to save the system, and another trillion over the past few years to keep the United States from falling back into crisis and to try to grow it out of its problems. Would Germany want to pull the plug on Greece or Portugal to face another Lehman as they could not be sure how much effect a Grecian collapse could have on the derivative structure?
It is important to note that about 2.3 trillion dollars of the Federal Reserve credit is held by the banks as excess reserves. The banks that hold these excess reserves lend them back to the Federal Reserve at interest rates above market for two reasons. The first is to allow the banks to generate profits so that they could very gradually write off the bad debts that overwhelmed their balance sheets from the 2008 crash. If they had showed these losses all at once, it might have caused a banking panic. It took eight years to reestablish the balance sheets of the banks on a sound footing. The second reason was by paying higher than market rates this money was noninflationary as it did not expand the money supply by fractionalizing in the banking system by a mechanism explained earlier.
I might add in passing that these 1.5 quadrillion of derivatives have been described by Warren Buffett as a potential financial weapon of mass destruction, and whose description was confirmed by the historical events of October, 2008, have not served as a deterrent for their continued utilization as the derivative aggregates continue to mushroom into larger proportions. The problem of the derivative exposure continues to the present day.
As we said in the introduction, we have to discuss in our talk about the US dollar the declining power of the United States military which will demonstrate that the power of the dollar that is one side of 88% of the international currency trades cannot continue as the most powerful financial control mechanism. Its role was only enforced by its predominant military power which is now inferior to that of Russia and therefore such a dollar hegemony cannot last. As the dollar is intrinsically worthless, its doom is sealed without that global military power. What follows is a discussion of the rise of Russia as the greatest military power in the world.
YOU WANT WAR? RUSSIA IS READY FOR WAR
The S-500 anti-missile missile system is capable of sealing Russian of from ICBM and Cruise missiles. It travels at a speed of 15,480 miles an hour rising as high as 115 miles traveling horizontally over 2,174 miles. It ends MAD or mutually assured destruction as it seals Russian air space and is being superseded by the S-600 that is a massive improvement. We expect the roll out of the S-700 in a year. The Russian hypersonic missiles in a war with NATO would nullify the vast NATO advantage in air power in ten minutes as these missiles destroyed all the NATO airfields paving the way for Russian shock armies to reach the English Channel within two weeks.
In a sense the US is no longer a global power according to Brzezinski if this is true which it is. The ability of the United States to continue to intimidate the world by threats of sanctions ultimately reaching the point that the US blocks an Iran (now blocked) or Russia from using CHIPS and SWIFT interbank clearing ending its ability to trade with the world in an efficient manner is gradually eroding in concert with the US military decline.
It is important to note that this financial tool of sanctions has hanging over it a 1.5 quadrillion of derivatives that nearly brought the world down in 2008 being triggered by the fraudulent subprime and credit default swap mechanisms which required four hundred years of credit creation in the aftermath to save the world system but if Iran were to be placed in this squeeze again by the new sanctions, or Russia for that matter, the al-Houthis have threatened to destroy all the Middle East oil. A cutoff by tactical nuclear missiles by the al-Houthis obtained on the Black Market could destroy in the Middle East over 20% of the world oil supply or twenty million barrels a day, and trigger a detonation of the quadrillion of derivatives that could not be papered over as in 2008 creating a depression worse than the 50% unemployment in 1933 that brought down the Weimar Republic in a national revolution as outlined in the article below. This is not to speak of the anti-ship missiles lining the shores of Iran that can block the Straits of Hormuz's 22 million barrels of oil that travel through it, or 22% of the world oil supply, that can well be another source of the destruction of the 1.5 quadrillion derivative market on top of the 88 trillion world GDP. Ask for our Straits of Hormuz study. for further details.
These exposures that lie beneath the surface of the world financial system are not widely understood. And let's go on with further analysis of the system. It is also important to realize that the credit system of these banks is a closed loop and no money leaks from it except when it is converted to cash, and no money leaks overseas unless it is converted to cash and carried overseas. The latter is not easy to do with western nations watching like hawks these cash transfers via the terrorist laws, or really enemy of the people statutes a la Soviet Russia or East Germany. Essentially, this credit dollar based on deposits at banks floats against the credit yuan or credit yen in a similar manner. The problem with this floating system is that it is not clean. There are dirty floats all over. And instead of the dollar floating by supply and demand against the yen, the Japanese erect a currency tariff against our goods by buying our currency to raise its value so they can dump their goods on us. If currencies truly float, the deficit countries based on excess say dollar credits would fall making it harder for them to buy imports, and it would serve as a self-correcting mechanism. This mechanism is interfered with by these dirty floats. This is discussed in the letters exchanged between myself and the US Secretary of the Treasury at that time Robert Rubin.
Robert Rubin Correspondence – David Lifschultz
When we talk about hot money in the United States of about 11.7 trillion we refer to deposits or Treasury instruments that can be immediately sold and converted to foreign credits. If this hot money were to be converted all at once into foreign credits, the currency would crash as it would constitute a dollar exposure and not a dollar turnover as the 5 trillion that turns over on the foreign exchange market each day. (The following figures have not been updated through to the next paragraph.) The only reserves the United States has against this potential run on the dollar is about 300 billion plus of gold at market and currencies at market. This is far too small to tackle the problem and if the gold were sold on the spot it would crash its price causing it to yield much less an amount than the nominal reserve value.
Now, I just looked up at the Federal Reserve balance sheet to find 24 billion in foreign currencies. So our nation's liquidity is 307.47 billion at today's gold price plus 24 billion in foreign exchange plus IMF SDR quota of 83 billion. The US can draw up to its quota of 83 billion. The demand on the US in hot money is 11.7 trillion. Generally, a sound company likes to operate on a two to one ratio of current assets over current liabilities or 2 to 1. The US current assets over current liabilities comes to a ratio of current assets to liabilities of the US of 379.47 billion over 11.7 trillion or a ratio of about 1 to 31 using 58% of the dollar value for SDRs.
What this means is if there was a run on the dollar whereby Japanese holders of over a trillion dollars in US dollar assets sold all of their dollars on the open market, the US could only buy up of this debt of 379.47 billion dollars. Then, it would have no reserves and go bankrupt. The dollar would keep falling unless the US could persuade some other country to buy up the dollars. Then, the issue is whether the US was just illiquid or insolvent. An illiquid company would have been General Electric in 2008 which could not turn over its commercial paper, and in a default, would have had to declare for bankruptcy protection while it liquidated its other assets. All of its assets then exceeded its liabilities. But in a collapsing market, the other assets of GE other than cash would be falling in value as we saw in the concomitant crash of the 2008 stock market. So if GE had huge amounts of commercial real estate, that real estate could have been suffering a rapid erosion in value, and theoretically all of the Triple A assets of GE could have been collapsing at the same time.
In the case of the United States, if it were to be treated as a company and not a sovereign, then if it had a deficit net worth or net deficit position of around 10 trillion dollars which is around the figure it would mean in a liquidation its creditors could not be paid off. The response to this observation is that the entire wealth of the US would be at the disposal of the US and it could issue an asset tax on all its citizens sufficient to pay off its debts. The national debt in relation to the GDP of the US is about 107 to 108 per cent but this does not reflect the total wealth. Its total wealth after debt is estimated at 93.5 trillion in 2017. If we say that the US government has access if not control of all the wealth of the United States which verges on socialism, then the US could tax 8 trillion of that wealth to pay its foreign debt obligation provided the foreigners would take assets in other forms than dollar credits. However, in the world crisis triggered by the collapse of the dollar, the asset values in the United States could fall as much as 90%. This may sound far fetched, but in 1933 at the heart of the depression with unemployment about 25% real estate prices fell over 90% in New York City as the stock market. If all assets similarly fell 90%, there would be nothing left of the US.
If truth be told, if the creditor nations were to try to remove overnight many trillions of their foreign investment from the United States, it would be regarded as an act of war and the assets frozen. The same action would be taken against Japan of freezing their dollar assets in the United States. The issue of turnover against exposure discussed above can be easily explained by the following comparison. If you have a billion dollars to trade with which is hypothetically all my net worth, and I buy and sell bonds all day to the tune of 300 billion dollars, then it would be foolhardy to say that what is my billion of reserves against my trading prowess of 300 billion dollars a day in bonds. But the exposure I have is a billion, and against that exposure the turnover means nothing except as to whether I lose or gain money each transaction. If I lose two billion dollars, I am broke, and minus one billion dollars as happened to Long Term Capital Management whose derivative position was over a trillion dollars. That demonstrates that when the president of the New York Federal Reserve, William McDonough, told me what is 11.7 trillion (it was less then but I am using the current figure to avoid confusion) in hot money exposure when less than half that amount trades each day, either he did not know himself or he was purposely trying to mislead me as to the significance of this exposure that can be ruinous.
The three trillion exposure to China due to their surpluses is therefore potentially very dangerous for the United States and other deficit countries as if they converted these dollar credits into yuan credits as the Middle Eastern countries could to their currencies, the dollar would collapse on the foreign exchange markets. It is not likely to lead to a short-term catastrophe as China is not prepared to cease exporting to us and others, and nor they would benefit from a world depression as it would deter their march into becoming the dominant world power. In any event, China’s dollar credits would also be frozen if the effort were initiated as those of the Gulf States of Arabia.
Another example of exposure versus turnover is the high frequency turnover in the stock and Forex markets. The average holding or turnover of stock in the United States is twenty seconds. In the Forex markets, which is 70% electronically based on preset algorithmic trading, the roundtrip trades or turnover are completed in under a second on average, and the Big Five players are in and out in under 1/10 of a second. This is also called systemic trading responsible for about half the trades on the New York City stock exchanges and they are tied into the cash settlement manipulations. Ask for our studies on cash settlement if you are interested. This is truly an unproductive use of capital as it produces nothing of value to the society, as well as most of the quadrillion of derivatives. The Tobin transactional tax to discourage this wasteful expenditure of national resources is one way to redirect bank credit. Also, another Glass-Steagall Act should be passed which would include removing these derivative exposures from their balance sheets. In addition, taxes should be raised on short-term profits to 90% to discourage parasitic trading and reduced on long term gain over five years to 5% to encourage productive investment wiping out most hedge fund and investment bank trading especially utilizing cash settlement for manipulation by those that control trillions of investment capital. That was behind the crash of 1987 where we reversed the crash by ordering the major Wall St. players to reverse their position short positions.
As John D. Rockefeller laid out for his Standard Oil combine that is best reflected in one of its former components, EXXON, whose Rockefeller principles they still follow, derivatives for decreasing risk are an authentic business purpose but not to gain speculative profit. As John D. wrote in his “Random Reminiscences”, “Standard Oil is not concerned in speculative interests as the oil business itself is speculative enough, and its successful administration requires a firm hand and a cool head.” And this principle was carried forward in a recent Annual Report of EXXON that stipulated that derivatives are only used to protect investment but not speculation. An example would be farmers selling their futures in corn to Kellogg to pay for seed, and supplies, so that Kellogg can be able to plan on a stable price for their corn flakes but not otherwise for the purpose of gambling using bank credit. Or in the case of EXXON, their selling in the future their refinery production of products to be sure they reaped the money necessary to pay for the building of the refinery while it gives the buyer an assured supply of product at a fixed price they can plan on and guarantees EXXON a sale. In a sense, the Shell future sales of natural gas at their 22 billion dollar Sakhalin project was done to protect their balance sheet accords with this principle.
There is a misconception that the creation of bank credit, or the M-3 money supply, is solely the concern of the banks and should remain within the confines of the free market. But the creation of money out of nothing in our fractionally reserved banking system is essentially a conversion of the wealth of one part of the population to another, and at the very least should be guided by the government as Dr. Hjalmar Horace Greeley Schacht did as Reichbank President in 1933 where no bank credit was allowed to be used for unproductive purposes such as speculation and where he turned around the catastrophic unemployment situation relatively quickly in that 50% of the German unemployment was wiped out in six months and the rest by 1938. John Maynard Keynes in his introduction to the 1938 German edition of his “General Theory of Employment, Interest and Money” declared that Dr. Schacht was the greatest exemplar of this theories. (This approach was replicated after World War Two by the Schacht Reichbank protege, Dr. Wilhelm Vocke, who created the German postwar economic miracle, and my friend, George Champion, who was then head of Chase Manhattan Bank, invited him over in the 1950s to explain this to the American Banking Association).
It was Schacht in 1923 who stopped the German hyperinflation by ceasing to supply credit to the currency speculators who were shorting the Mark, and this created a surge in the Mark ending the hyperinflation. The speculators could no longer go to the central bank for credit to cover their short but had to buy it in on the open market. Similarly, the Chinese authorities blocked the speculators and insulated their economy from the so-called Asian currency contagion of 1997 by buying both the Hang Sang Index and their own currency which the speculators had shorted thereby creating a bloodbath among the speculators–who promptly called in Milton Friedman to call foul as government intervention against manipulation was not regarded by him a part of the functioning of a free market.
Creation of money was always historically under the rule of the sovereign whether it was a monarchy or Congress and not to be held in private hands for their use according to their sole discretion. This does not even cover the lender of last resort role. Even Goldman Sachs had to flee to for cover in the Lehman debacle under the Federal Reserve tent despite almost all of their positions being in the right direction--that is short, as well as General Electric, who could not turn over their commercial paper liabilities created under the so-called genius of management, Jack Welsh, to save interest expenses against the higher interest expenses for the more conservative long-term bond issuances, which is another reason for the right of the government to exercise control over this sector that they have to bail out or face the destruction of their economy. The thought of this Jack Welsh must cause the great Thomas Edison to turn over in his grave.
We can look at total central bank gold reserves of 30,562.5 tons or 977,984,000 ounces, and divide these ounces into the world M-3 estimated to be 60 trillion, and come out $63,000.00 per ounce. This relates to the earlier value of the dollar as $20.00 an ounce in 1920. This expansion validates Aristotle’s contention in Politica 1:3:23 that the interest rate system is contrary to nature in that the gold, paper or credit cannot produce its own children, or the liquidity to cover the interest without either hypothecating the gold or issuing more paper money or credit. What this means in ordinary lingo is that if I own a house, and it is worth ten million dollars, and I sell ten five million first mortgages on it, then I have hypothecated the asset gaining fifty million in credit on a ten million dollar asset. Doesn’t that sound familiar in the various alphabet soup derivatives involved in the last Lehman crisis? So when England in 1900 had a 3% gold base against its Pound credits, it had hypothecated its gold over 33 times with similar Pound issuances. It was an untenable gold interest rate system as the dwindling ratio of gold ounces could not sustain a run on the central bank because of the inverse credit pyramid, and the Pound failed in 1931 with the English going off the gold standard. That spelled the death knell of British power as it iid for the US when it went off the gold standard under Nixon. We have already treated the lunacy of a fiat money representing nothing redeemable by another IOU nothing piece of paper representing nothing.
There is the question of whether gold is in sufficient quantities to allow for expansion of an economy but the liquidity for the economy can be achieved by the gold rising in value if there is a proliferation of other commodities far in excess of the gold base, and in that sense gold should float as a money in the form of a commodity against other commodities. Therefore, in a system under Sharia law gold savings would be rewarded as the production of the system expanded, and it would create a much more valuable gold and a certainly honest currency. The rising value of gold in such a situation would also furnish the additional liquidity for the financing of the growth of the economy. Even a currency separated from gold, whose value constitutes a form of secular transubstantiation, follows the same laws of the interest rate system as it must continuously create the credit or liquidity to pay the interest until it starts to disintegrate in currency crises based on the aggregates becoming unmanageable. This is why historically all currencies so divorced from a metallic metal, and based on the interest rate system, die. The British economist Alfred Marshall was the last one to struggle with this paradox and could not solve it. He could not figure out how to circumvent the fact that the interest rate system cannot create its own liquidity except through diluting the currency, credit or gold until it expires.
Lord Byron addressed the same issues as Johann Wolfgang von Goethe in his “Don Juan”, but spent more time on the issue of the fiat credit and paper system with interest as a control mechanism as the quote below indicates:
“Who hold the balance of the world?
Who reign O’er congress, whether royalist or liberal?
Who rouse the shirtless patriots of Spain?
(that make old Europe’s journals squeak and gibber all).
Who keep the world, both old and new, in pain or pleasure?
Who makes politics run glibber all?
The shade of Bonaparte”s noble daring?
Jew Rothschild and his fellow Christian Baring.
And Percy Shelly regarded the fiat system as more oppressive to the lower classes which it is than the medieval use of gold itself as the only money with silver. While the Wall Streeters aggrandize the wealth to themselves as the .1%, the lower classes can hardly afford to raise children as under the the House of Medici utilizing usury.
Tis to let the Ghost of Gold
Take from Toil a thousand fold
More than e'er its substance could
in the tyrannies of old.
Paper Coin-that forgery
Of the title-deeds which ye
Hold to something of the worth
Of the inheritance of the Earth.
(from the poem "Mask of Anarchy")
Footnote Three:
WHO HOLD THE BALANCE OF THE WORLD?
BY DAVID K. LIFSCHULTZ
DON JUAN BY LORD BYRON
CANTO THE TWELFTH
V.
Who hold the balance of the World? Who reign
O'er congress, whether royalist or liberal?
Who rouse the shirtless patriots of Spain?[615]
(That make old Europe's journals "squeak and gibber"[616] all)
Who keep the World, both old and new, in pain
Or pleasure? Who make politics run glibber all?
The shade of Buonaparte's noble daring?--
Jew Rothschild,[617] and his fellow-Christian, Baring.
The Kiev Coup in the Ukraine is part of an historical effort by the Anglo-Saxon nations to dismantle Russia fearing the geographical sprawl of the Russian Empire. As Russia spread eastward it began to approach India which was the crown jewel of the British Empire and so the British determined that Russian power had to be broken. In the late nineteenth century Great Britain through the Rothschild Milner group began to recruit the United States through their subordinate banker J. P. Morgan to join their geopolitical interests together as they did not believe that they had the power alone to achieve these goals. These connections are considerably treated and connected in Carroll Quigley's "Tragedy And Hope" as the Milner Group opened their records to him. What Quigley was not shown was that the power of the Rothschild Banking Family controlled Europe, the United States and the world through the interconnected banking systems through all the central banks until 1940 and were a substantial but diminished force thereafter.
This is laid out in "Coningsby" by Benjamin Disraeli who wrote this to convince the Rothschilds that he should not be overlooked for advancement understanding all their techniques and rose to be Prime Minister and a Rothschild was a pallbearer at his funeral.
Here is how the master plan works:
"Abstraction, difficult at it is, is the source of practical power. A financier, whose dealings with the world are more abstract than any other practical man, is also more powerful than any other practical man. He can deal in wheat or cotton without needing ever to have seen either: all he needs to know is whether they will go up or down." (Lord Bertrand Russell from "ABCs of Relativity"). The manner n which the market is controlled is discussed in the article below entitled: "Stochastic Control Theory".
We point out in our piece entitled "Goethe, Faust and the Euro" how these hypothecated abstractions have been used to take over the whole world by the Rothschilds over two and fifty hundred years ago through the the financial use of currency hypothecations, or abstractions, as Goethe showed in his "Faust" in the early part of Part Two. Mephistopheles represented Mayer Amshel Rothschild. This is what Lord Russell was telling us.
This same Disraeli humiliated Russia at the Congress of Vienna by stopping them from achieving any gains from their victory over the Turks that elicited this exclamation from Bismarck regarding Disraeli that "Der alte Jude, das ist der Mann" (The Old Jew, he is the man.) Of course, he had the Rothschilds behind him which made him. Disraeli predicts in this 1844 novel "Coningsby" the revolution of 1848 that swept Europe and raised the Rothschilds to such power that Metternich who had exalted them to honor and made them Barons had to flee Vienna as a vagabond as they cracked their 1848 whip over him.
Excerpted from "Coningsby" by Benjamin Disraeli:
'You never observe a great intellectual movement in Europe in which the Jews do not greatly participate. The first Jesuits were Jews; that mysterious Russian Diplomacy which so alarms Western Europe is organized and principally carried on by Jews; that mighty revolution which is at this moment preparing in Germany, and which will be, in fact, a second and greater Reformation, and of which so little is as yet known in England, is entirely developing under the auspices of Jews, who almost monopolise the professorial chairs of Germany. Neander, the founder of Spiritual Christianity, and who is Regius Professor of Divinity in the University of Berlin, is a Jew. Benary, equally famous, and in the same University, is a Jew. Wehl, the Arabic Professor of Heidelberg, is a Jew. Years ago, when I was In Palestine, I met a German student who was accumulating materials for the History of Christianity, and studying the genius of the place; a modest and learned man. It was Wehl; then unknown, since become the first Arabic scholar of the day, and the author of the life of Mahomet. But for the German professors of this race, their name is Legion. I think there are more than ten at Berlin alone.
'I told you just now that I was going up to town tomorrow, because I always made it a rule to interpose when affairs of State were on the carpet. Otherwise, I never interfere. I hear of peace and war in newspapers, but I am never alarmed, except when I am informed that the Sovereigns want treasure; then I know that monarchs are serious. 'A few years back we were applied, to by Russia. Now, there has been no friendship between the Court of St. Petersburg and my family. It has Dutch connections, which have generally supplied it; and our representations in favour of the Polish Hebrews, a numerous race, but the most suffering and degraded of all the tribes, have not been very agreeable to the Czar. However, circumstances drew to an approximation between the Romanoffs and the Sidonias (pseudonym for Rothschild in the novel). I resolved to go myself to St. Petersburg. I had, on my arrival, an interview with the Russian Minister of Finance, Count Cancrin; I beheld the son of a Lithuanian Jew. The loan was connected with the affairs of Spain; I resolved on repairing to Spain from Russia. I travelled without intermission. I had an audience immediately on my arrival with the Spanish Minister, Senor Mendizabel; I beheld one like myself, the son of a Nuevo Christiano, a Jew of Arragon. In consequence of what transpired at Madrid, I went straight to Paris to consult the President of the French Council; I beheld the son of a French Jew, a hero, an imperial marshal, and very properly so, for who should be military heroes if not those who worship the Lord of Hosts?' 'And is Soult a Hebrew?' 'Yes, and others of the French marshals, and the most famous; Massena, for example; his real name was Manasseh: but to my anecdote. The consequence of our consultations was, that some Northern power should be applied to in a friendly and mediative capacity. We fixed on Prussia; and the President of the Council made an application to the Prussian Minister, who attended a few days after our conference. Count Arnim entered the cabinet, and I beheld a Prussian Jew. So you see, my dear Coningsby, that the world is governed by very different personages from what is imagined by those who are not behind the scenes.'
This is how it was before World War One where each nation's cabinet had a proponent for war such as a fanatical Rothschild Slavophile in Russia, or a Rothschild Germanophile in Germany, or Rothschild flunky in England or France. The conductor was Baron Eduard de Rothshchild and the others were the players in his orchestra following the directions of the conductor orchestrating each side in the conflict. Thus, through this orchestra the Baron created World War One. Later we quote from John Buchan, First Baron Tweedsmuir, that gained his knowledge as Secretary to Lord Milner himself the Rothschild agent. It was the Baron Eduard who through British Intelligence ordered the slaying of the Tsar and his family which orders were followed by Lenin as the British King was merely his puppet as all power transferred over a hundred years before to the merchant bankers that were the powers behind the scenes.
The representatives from the Rothschild bank and the representatives of their subordinate banker J. P. Morgan had meetings with President Woodrow Wilson in 1915 to lend money to the British and French to pay for the munitions that these two countries were purchasing. These war sales from what were later called the merchants of death had a very stimulative effect on the US economy also cited as a justification of the loans. These large loans were approved as the sale of these munitions were considered very important to our exports but were opposed by Secretary of State William Jennings Bryan who said these loans violated our proclamation of neutrality and would drag us into the war but was overruled. Bryan resigned and he was right. The US sold Britain and France 7 billion dollars in goods for the war which is 700 billion dollars in today's dollar. The cost of World War One was a hundred billion dollars or a ten trillion dollars in today's money. It is not logical to believe that we spent ten trillion dollars to save our 700 billion in loans. That would not be good business and the business of America is business. Or so we might think. (Source for this paragraph "The Devil Theory Of War" by Charles A. Beard, though this information is no theory. He was the most prominent historian in America at the time.)
The actual goals of World War One (and also World War Two) of Britain were to destroy two major powers, that was their ally Russia, and their enemy Germany. Germany had antagonized Britain by starting the building of a major fleet which was intolerable to the mistress of the seas that the dismissed Bismarck had wisely had no interest in. The Kaiser was interested in Alfred Thayer Mahan which demonstrates how a nation can be destroyed over a theory. So Germany had to be destroyed. What better way was there to do that as in World War Two but to have Germany and Russia fight it out destroying themselves. This was the goal of the Secretary of State for Foreign Affairs of Britain Edward Grey for World War One. This also was the position of Britain in World War Two as both Germany and Russia had been rebuilt by Hitler and Stalin so that they had to do it all over again. The fact that Britain sent supplies to Russia, and later the United States did the same in World War Two largely through Alaskan ports did not mean that they loved Russia as the Entente did this in World War One. They were merely using Russia as cannon fodder and did not want Germany to win but that both should bleed themselves to death leaving the division of Europe and the world to the those that remained of the Entente or actually the Anglo-Saxons.
Britain had been an an early sponsor of Hitler through their intelligence agencies financing the National Socialist Party in the 1920s as Hitler spoke favorably of England in his "Mein Kampf" and lent huge sums of money in 1933 to Hitler (Schacht-Norman transactions) to build Germany up for the purpose of Germany attacking Russia. Here again they could kill two birds with one stone. George Washington in his Farewell address warned against our getting involved in these foreign entanglements which is the next group of articles after this one.
The underlying philosophy is what they call geopolitics largely of Halford Mackinder. Though Great Britain ruled the waves, they as the United States have a hard time projecting power on land in the Eurasian land mass based on the large expanse of ocean between us and if Britain could not clip the wings of Russia before they reached India they would find themselves in an impossible position to defend India by the sea against the Russian land power. Russia had to be destroyed from the east before they reached India. There is a great deal to this opinion and this was capably used by Baron Eduard de Rothschild as a cover for his desire to destroy and root out the Tsar. The Baron really did not care about any European powers but their own personal interests. The Tsar was their enemy and they would use any contrivance to destroy him.
It was Mackinder's analysis that whoever controlled the Eurasian land mass would control the world. This was what World War One was really all about on the surface and the Milner Rothschild Group had set up the United States to be their ally in making sure the Eurasian land mass was not taken over by Russia or Germany if the latter conquered Europe and then went for Eurasia as Germany in World War Two tried to do after defeating France. The goal of Germany was to link up with Japan controlling from the English Channel to the Pacific. Of course, there were lots of lying propaganda to cover up the true motives of the Entente and allies of World War Two that would be hard to sell to the public based on the truth.
This was realized in this exchange between Goering and Hitler:
Goring: They (Britain and America) entered the war so that we would not reach the east (Japan in China), but not so the East (Russia) would reach the Atlantic.
Hitler: That's quite clear.
Source: "Hitler And His Generals", the stenographic record of military conferences, page 649.
And by Stalin:
We (Milovan Djilas and Stalin) stopped on our way to the dining room to view a map on the wall of the world where the Russia was colored in red. Stalin waved his hand over Russia and said: "They (the US and Britain) will never accept the idea of such a great space should be red, never, never!"
"Conversations with Stalin" by Milovan Djilas, page 74.
These same geopolitical ideas underlie the present struggle with Russia. The United States fought World War Two to prevent Germany and Japan uniting the Eurasian land mass between them as that would have enabled them to control the world following Brzezinski but really lost that objective when Russia and China allied together in 1949 controlling from East Germany to the Pacific via China. The US thus essentially lost World War Two and the treasure we expended was a total waste. The US made a quick reverse turning Japan and Germany into allies against Russia and China pushing back against this Russian-Chinese alliance. They called this the Cold War. The US recoiled as it is now from the present 2014 Russian and Chinese alliance after having separated them under Nixon. And now they are back together. That is what the present conflict is all about.
The US had a breakthrough in 1991 when Russia collapsed and hastened to separate the Ukraine and Baltic States from Russia and large swathes of Central Asia. And for the first time Russia is showing great resistance to any further effort to dismantle them having rebuilt their military into the strongest in the world outlined in detail in the in articles below this one. Its impenetrable S-500 and S-600 defensive missile systems were such a dramatic breakthrough that the US can no longer even be regarded as a global power their present power being held together only by their control of the world payment mechanism (CHIPS and SWIFT). The US in a kind of hysteria of sanction manias connected with its massive decline in industrial power comparing nine million motor vehicle production per year in the US to 29 in China demonstrates the point that the US has become a secondary power. Next we discuss how this Anglo-Saxon aggression against Russia worked out historically starting with Russia in World War One.
This is what the allies did to Russia in 1918. The allies France, Britain and the United States had two goals in World War One which was to destroy Russia and Germany. Russia was hoodwinked into an alliance with France after Kaiser Wilhelm stupidly abrogated the Reinsurance Treaty with Russia precipitating two world wars where the second was really a continuation of the first. England hated Russia as it feared their border was coming too close to their India and the country had to be broken up. This went against what Lord Palmerston called British interests as he explained that "Britain had no permanent friends or enemies but only permanent interests". It was not only Germany who acted to destroy Russia by Parvus-Lenin, see video below, but the intelligence agencies of Britain, France and the US (there was no OSS then so this was politically engineered) who acted in Russia in support of the Bolsheviks to bring Russia down low under the approach described above.
British intelligence had great influence on Lenin-Trotsky pushing him to liquidate the Tsar and his family and most of the Romanovs except the Romanov whose book we quote from below. The British royal family was interested in the jewels of the mother-in-law of Grand Duke Alexander that the British royals wear to this day. Thus, the British intelligence agencies ordered Lenin to protect Grand Duke Alexander, his mother-in-law and other family members with him in the Crimea who were personally protected by Lenin under British orders. In other words, Lenin reported to both German intelligence and British intelligence in these days when his position was so precarious and he was juggling between the two for survival. And Lenin was ordered by England to kill the Tsar, his wife, his children and the other Romanovs so that there could be no rallying around the deposed Tsar or Romanovs as desired by the Baron.
Here are the observations of General Max Hoffmann, who was a senior commander of the German Army on the eastern front and by far their most brilliant, about how England treated their ally Russia:
"In March, 1917, at that moment of great difficulty, an event took place affecting the history of the world and which gave Germany once again the possibility of a major victory--this was the beginning of the Russian Revolution. The Tsar had realized that Russia was unable any longer to support the burden of the War, and by continuing it he would expose the state to severe internal convulsions. He was therefore considering the question of a separate peace. In this, however, he calculated without taking consideration the will of England. The British Ambassador in Petrograd, Sir George Buchanan had received orders to prevent a Russian separate peace at any price, and he acted in accordance with his instructions when he joined Kerensky and Gutschkov in deposing the Tsar."
General Hoffmann thought that he could negotiate a peace with Kerensky, and was tricked by Kerensky's peace overtures, so fighting went on n 2017. Now, we come to a most interesting observation by General Hoffman:
'I cannot say if the German General Headquarters was cognizant of this measure (of later moving Lenin and entourage from Zurich to Russia which it was as Ludendorff later admitted.) The Commander in Chief in the East knew nothing about it. We only heard of it months later, when foreign newspapers began to reproach Germany about it and asserted that we were the fathers of the Russian Revolution. This assertion, which is as false, as so much of the enemy propaganda, cannot be denied emphatically enough. As I have said the Russian Revolution was brought about by England."
This was how France and England repaid the Tsar for losing 500,000 soldiers in an attack at the inception of the war to relieve the pressure on Paris who was reeling under the rapidly advancing German Army under the Alfred Graf von Schlieffen plan when the Russians were not ready. The Russians entered the war with insufficient military industrial power to resupply their troops and an attack on that basis alone was demented but the Tsar was a fool and idiot.
In fact he did not have the industrial capacity to enter the war.
Here we take an aside to look in for a moment to the end of the Tsar's story of leadership quoting from the Lubyanka cellmate of Leopold Trepper who was the conductor of the Red Orchestra in Europe which was the most significant espionage group in World War Two excerpted from his book the "Great Game" on page 381-383:
"I stared in astonishment (Leopold talking). My cellmate was Vitaly Szulgin of the Black One Hundred. Szulgin lay down on the bed next to mine and for many long hours told me his life story.
At the beginning of the war, the Nazis invited him to Berlin and proposed he take part in the anti-Bolshevik crusade. But Szulgin--a reactionary with fascist sympathies and an anti-communist to the tips of his toes--had refused. He felt these Germans cared very little about whether Russia was red or white, that their only ambition was the conquest of vast territories. Szulgin spent the whole war living anonymously in a small village of Yugoslavia. After the defeat of Hitler's hordes, he decided to return to the Soviet Union. The victory had gratified his "great Russia" chauvinism. He was attached to his native land, and wanted to end his life there, even in prison.
He presented himself at the Soviet military mission in Belgrade. The young NKVD officer on duty stared in amazement at this man who is volunteering to become a prisoner. He consulted a list of wanted persons. Szulgin was not on it. "You may go; we do not know you," he said.
But Szulgin did not give up, ; he came back the next day. This time a colonel was sitting behind the desk. (The NKVD as the KGB used military titles for their organization.) As soon as Szulgin gave his name, the colonel got up, rushed at him, and shouted losing all control,
"You mean you are Szulgin, the organizer of the pogroms in Russia."
"At last someone who recognizes me," the former head of the Black One Hundred said, without losing his composure.
They put me on a plane to Moscow, and he who had dreamed all his life of being a pilot had his first airplane ride, from Belgrade to Lubyanka.
Then came his hearing. "What's the use wasting your time with me?" "Put me in a private cell, and I will write the story of my life and my crimes against the Soviet Union."
He filled several hundred pages. Every time he went for interrogation, the room was full of officers who came to listen to the "lecture". Szulgin made an original contribution to the pre-October history of Russia. At the head of the Black One Hundred, he had been part of the delegation that went to ask the Czar to abdicate. Nicholas II was deep in a game of chess and did not want to be distracted. When he learned the object of their visit, the Czar did not try to conceal his joy. "At last, it is over!"
"What did you expect? Szulgin added. "He was the biggest idiot in the whole dynasty."
Szulgin's political ideas were really extraordinary. He frequently held forth on his favorite subject, the greatness of Russia: "Under the leadership of Stalin, our country has become a world empire. It has achieved the goal that generations of Russian have aspired. Communism will fall away as a wart, but the empire will remain. It is too bad that Stalin is not a real Czar; he has all the qualification. Ah, if Stalin were not a Bolshevik. Your communists do not understand the Russian soul: the people have a quasi-religious need to be guided by a father they can trust."
Szulgin rested all his hopes on the greatness of Stalin's Empire.
"I do not want to be released", he said. "because everywhere I go would be received as you have received me. I hope they will give me a cell where I can continue to write books on the history of our country."
Szulgin, the fanatical anti-semite, the promoter of pogroms, was released well before the communist militants. He was assigned a dasha in a village, where even today, he continues his work, the tireless eulogist of the Stalin regime."
The reader may not know that the writer of the above was Leopold Trepper who was the conductor of the Red Orchestra that was the most effective spy ring against the Germans in western Europe. The network was partially broken and Trepper was captured. Rather than face torture, he gave away the members of his organization and later "escaped". Stalin arrested him for those betrayals and so this communist militant was not released until after Stalin's death. He did not deserve an early release.
The use of torture is a pagan method contrary to the traditions of the Bible but it does work. In Catholic Spain during the Grand Inquisition 17 conspirators would each be tortured in separate cells with a scribe taking notes of what each said. And then they would be compared. If they were the same, then it was accepted as true. Since Christianity as a religion has been destroyed in the west, torture has returned in most western countries in areas of national security. This is not surprising then as the pagan killing of women and children non-combatants has also returned on a mass scale in World War Two. They now have reached the point of having promoted ten billion abortion-murders if we include the after morning pill and have exceeded in wickedness any pagan nation in history by having sanctified sodomitic marriage. The sodomitic couple after marriage at West Point at a "Church" walk under the swords as they leave the service. The western nations are to all intents and purposes pagan and totally degenerate again.
The key here was again the struggle against Stalin's nationalism against internationalism that arose in Russia after Stalin's death and led later in 1991 to the temporary destruction of Russian power as under the internationalists Trotsky and Lenin.
Milovan Djilas: Without industrialism the Soviet Union could not have preserved itself and waged war. (In other words, socialism in one country or national socialism.)
Stalin: It was precisely over this that we quarreled with Trotsky and Bukharin.
Page 75 "Conversations with Stalin.
And on page 154:
Milovan Djilas: Toward the end of the dinner Stalin asked why there were so few Yugoslavian Jews in their party to which I answered there were not many Jews in Yugoslavia and most were members of the Middle Class. "The only prominent Jew is Pijade and he regards himself as being more of a Serb than a Jew."
Stalin: "Pijade, short, with glasses? Yes, I remember, he visited me. And what is his position?
Milovan Djilas: He is a member of the Central Committee, a veteran Communist, the translator of "Das Kapital", I explained.
Stalin: "In our Central Committee there are no Jews!" he broke in, and began to laugh. "You are a anti-Semite, you too, Djilas, are an anti-Semite!"
Let's return to the Tsar after this diversion:
The Tsar thought he had to keep his word to democratic France who despised him as Count Lev N. Tolstoy pointed out when the Tsar made his alliance with France in 1894 and later was stabbed him in the back by Britain and France during the Bolshevik Revolution. The clever Okhrana agent Stalin learned these lessons well though lost on traitors to Russia as Gorbachev and Yeltsin as later proved when the west broke all their agreements they made to them.
It is noteworthy that Stalin brought forward based on the Christian teachings learned at Seminary the teaching of Saint Augustine on marriage restricting the procreative act to procreation. This means that outside of marriage it was condemned and where in marriage there was no procreative intent such as during pregnancy and nursing or after menopause. All children in Russia under Stalin were so taught. This would also mean that all views contrary to this were forbidden and required the Russian people to have no contact with foreigners who could corrupt them. Thus, a cordon sanitaire was created around Russia or what Churchill called an Iron Curtain against the influence of Harrow sodomites as Churchill. This is what the Bible meant by the land of Israel being separate from the nations when holy (Exodus 19:5&6). Stalin did not want the west corrupting Russians.
The Rothschild (Baron Eduard) effort to destroy the Tsar began in earnest even before World War One in 1904 when they financed the Japanese War against Russia in 1904 and 1905.
What was perhaps Jacob Schiff's (agent of Baron Eduard de Rothschild) most famous financial action was during the Russo-Japanese War, in 1904 and 1905. Schiff met Takahashi Korekiyo, deputy governor of the Bank of Japan, in Paris (at the office of Baron Eduard de Rothschild) in April 1904. He subsequently extended loans to the Empire of Japan in the amount of $200 million (equivalent to $20 billion in 2016), through Kuhn, Loeb & Co. These loans were the first major flotation of Japanese bonds on Wall Street, and provided approximately half the funds needed for Japan's war effort. (The Baron created Churchill and Roosevelt for the next World War this time to remove Hitler from the scene. Churchill had fallen on hard times after crashing his fortune in 1929 and by 1935 it appeared he might not be able to afford any more his silk underwear and pajamas from Turnbull and Asser or his Chartwell estate. And so he was successfully bribed to oppose Hitler though he never particularly liked Jews. Jacob Schiff bought the New York race for governor for Roosevelt in the Lehman-Roosevelt race bribing Boss Flynn of the Bronx to deliver the votes. In America the deceased will decide close elections. Roosevelt was a new stooge set up for the Baron by Jacob Schiff.
When Japanese war did not destroy Russia the Baron started World War One and we have edited this excerpt from the book "39 Steps" by John Buchan substituting Rothschild instead of the word Jew:
John Buchan
Was Buchan trying to tell the reader in "39 Steps" something in the last line of his dedication, where he explicitly refers to secret truths stranger than the fiction featured in his adventure stories?
In the first chapter, the protagonist, Hannay, is told by a mysterious stranger of an “international conspiracy” aimed at turning the armies of Russia and Germany against one another. The conflict will be precipitated, explains the stranger, by the assassination of the Greek prime minister, Karolides. (Actually, the Archduke) The stranger, who later turns out to be Franklin Scudder, a British agent, goes on to tell Hannay that “the Rothschilds” — who “hates Russia worse than hell” — is behind the plot:
“I am giving you what he told me as well as I could make it out. Away behind all the governments and the armies there was a big subterranean movement going on, engineered by very dangerous people. He had come on it by accident; it fascinated him; he went further; and then got caught. I gathered that most of the people in it were the sort of educated anarchists (Bolsheviks) that make revolutions, but that beside them there were financiers who were playing for money.
“A clever man can make big profits on a falling market, and it suited the book of both classes to set Europe by the ears. He told me some queer things that explained a lot that had puzzled me — things that happened in the Balkan War, how one state suddenly came out on top, why alliances were made and broken, why certain men disappeared, and where the sinews of war came from. The aim of the whole conspiracy was to get Russia and Germany at loggerheads. When I asked why, he said that the anarchist lot thought it would give them their chance.
“Everything would be in the melting-pot, and they looked to see a new world emerge. The capitalists would rake in the shekels, and make fortunes by buying up wreckage (Rothschild hyperinflation in Germany after the war where they made a trillion dollars). Capital, he said, had no conscience and no fatherland; besides, the Rothschilds were behind it, and the Rothschilds hated Russia worse than hell. ‘Do you wonder?’ he cried. ‘For three hundred years they have been persecuted, and this is the return match for the pogroms. The Rothschilds are everywhere, but you have to go far down the back stairs to find him.
“‘Take any big Teutonic business concern. If you have dealings with it the first man you meet is Prince von Und zu Something, an elegant young man who talks Eton-and-Harrow English. But he cuts no ice. If your business is big, you get behind him and find a prognathous Westphalian with a retreating brow and the manners of a hog. He is the German business man that gives your English papers the shakes. But if you’re on the biggest kind of job and are bound to get to the real boss, ten to one you are brought up against a little, white-faced Rothschild in a bath-chair, with an eye like a rattlesnake. Yes, sir, he is the man who is ruling the world just now, and he has his knife in the empire of the Tzar because his aunt was outraged and his father flogged in some one-horse location on the Volga.”
Here we retrace our steps a bit:
The Russian offensive caused General Helmut Johannes Graf Ludwig von Moltke to lose his nerve just as it appeared Germany would win by transferring large numbers of troops from the western front to the eastern front as he thought he was about to be routed there. It was a colossal mistake.
This weakened the German drive violating the principle of Napoleon of concentration of force. Joffre thus was able to stop the Germans at the Marne and von Moltke said to the Kaiser "we have lost the war" and then suffered a nervous breakdown. The German offensive in the west thus failed. It was not Marshal Joseph Jaques Cesaire Joffre who won the Battle of the Marne but Russia who drew German troops to Russia which was used and hated as cannon fodder as they were in World War Two by the allies as we shall discuss shortly as can be heard on the Operation Gladio tape which has James Jesus Angleton of the OSS-CIA working at the end of World War Two to set up Russia as the enemy again before the war was even over.
The killing of innocent civilians to achieve a strategic objective on not letting the communists take over Italy was considered justified as in the 9-11 false flag operation to initiate a war against Islam proven in this Gladio tape. Here in Italy innocent civilians were killed blaming the communists in order to make sure that they did not win the Italian elections. This was unconscionable as 9-11. Even the kidnapping of Aldo Moro was set up by western intelligence agents whose special forces infiltrated the Red Brigade to achieve the sophistication necessary to effect the kidnapping of a head of state. The intelligence agencies were able to use the Red Brigade as a cover to conceal their tracks. What happened here was that Moro wanted to create a fusion government in Italy with the communists which was the vehicle that the communists in Eastern Europe used to take over their governments after World War Two so the CIA was completely right to see this as a strategic threat.
In 1978 Pieczenik was a special envoy for President Jimmy Carter to Italy to assist in the search for Italy's Prime Minister Aldo Moro. Pieczenik, as an international crisis manager and hostage negotiator in the State Department, was sent to Italy on 16 March 1978, the day that Moro was kidnapped, and was involved in the negotiations for the release of Moro. He was part of a "crisis committee" headed by Francesco Cossiga, the interior minister. Moro was held for 54 days, Pieczenik said the committee was jolted into action by the fear that Moro would reveal state secrets in an attempt to free himself. Moro's widow, Eleonora, later said Henry Kissinger had warned her husband against his strategy of Historic Compromise (Italian: Compromesso storico). "You will pay dearly for it," he is alleged to have said. A false statement, attributed to the Red Brigades, was leaked saying that Moro was dead. Pieczenick revealed that this had a dual purpose; to prepare the Italian public for the worst, and to let the Red Brigades know that the state would not negotiate for Moro, and considered him already dead. (This was interpreted by the commandos as an instruction to liquidate Moro.) Moro was shot and placed in the back of a car in central Rome, midway between the headquarters of the Communist Party and the Christian Democrats. In a documentary Cossiga admitted the committee had taken the decision to release the false statement. Pieczenik said that Moro had been "sacrificed" for the "stability" of Italy. Moro's eventual assassination has been attributed to the CIA as part of Operation Gladio by journalist Philip Willan.
We cite this as a comparison to 9-11. What are the other credentials for Dr. Pieczenik:
Pieczenik was Deputy Assistant Secretary of State under Henry Kissinger, Cyrus Vance and James Baker. His expertise includes foreign policy, international crisis management and psychological warfare. He served the presidential administrations of Gerald Ford, Jimmy Carter, Ronald Reagan and George H. W. Bush in the capacity of deputy assistant secretary. (But this may mean something to the public but the power in Washington at the CIA is not with the Director but deep within the organization. It is an axiom here that if you know the name of the CIA operative he is not important.)
It is also quite interesting that the very, very high CIA Steve Pieczenik is going on the Alex Jones Infowars identifying what really happened on 9-11 which demonstrates a division at the top with Mueller having covered up 9-11 at the FBI being appointed just before it for that reason and Pieczenik being forty stories higher than Mueller in the hierarchy telling who all the US players were at 9-11 being given the information by a US General. See the interview on 9-11-2018 by Owen Shroyer of Dr. PIeczenik on Infowars on the internet below. There were no members of Islam on those planes and the boarding tapes were retroactively doctored to show Arabs by the CIA who were not involved in 9-11 but were brought in to cover it up. Nor was the ISIS involved at all which we ourselves created to stymie Iran in Iraq as it pitted our Sunni (ISIS) against al Maliki and the Shia as a way to balance power in the Near East. Our sources are above the President, Congress and Supreme Court who took over the fiasco from Cheney who botched up the whole operation. It was they who decided to blame Osama as an excuse to invade Afghanistan to restart the heroin plantations shut down by the noble Taliban. It was a historic double-cross comparable in infamy to the worst actions of Perfidious Albion (Note two heroin wars against China in the 19th century). This would then finance the external operations of the US intelligence agencies from the heroin profits in the trillion dollar neighborhood and line not just a few of their pockets through control of 93% of the world heroin distribution.
Afghanistan and the CIA Heroin Ratline
The fact that Building Number Seven was not hit by a plane but went down anyway was almost a superhuman problem to get over. Only an idiot could have believed it after that. Here is the Operation Gladio tape and the Steve Pieczenik tape:
Operation Gladio - Full 1992 documentary BBC
9/11/2018 Dr. Steve Pieczenik joins Owen Shroyer on War Room
The Boeing Uninterruptible Autopilot is a system designed to take control of a commercial aircraft away from the pilot or flight crew. If implemented, the system would allow the craft to automatically guide itself to a landing at a designated airstrip. The "uninterruptible" autopilot would be activated remotely via radio or satellite links by government agencies.
We have to correct some of Steve's errors as his source is a general and not a primary source as ours. We can say that Steve Pieczenik is wrong saying the ISI was involved and the Saudis were not involved at all. Nor was the CIA involved though it was called upon to cover it up. The general that advised Steve was mostly correct otherwise.
The reader may wonder why the fake 9-11 Commission was believed as the Warren Commission. This so-called Supreme Court Chief Justice Earl Warren was connected to organized crime in California as Governor and was so arrogant that at the Toots Shore Restaurant he raised his glass to Albert Anastasia to Albert's glass in the motion of a toast. He is responsible for destroying the entire American school system. The Mossad training course for agents used to require a replication of Lee Harvey Oswald shooting Kennedy. The entire scene is set up as in Dallas on that fateful day and no IDF sharpshooter can replicate the shots. No. Not by a long shot. When they are so shocked they ask the instructor why? Because Oswald never shot him; he was set up but the stupid American public will believe anything. The truth is if you can succeed in morally degenerating the whole population as our Trotkyites have done you can make them believe anything as Harry Houdini claimed in his technique of misdirection in magic tricks.
Let's look at World War One from the Russian side quoting from that interesting account by Alexander, Grand Duke of Russia, former Field Inspector General of the Russian Imperial Air Service in World War One, in his book "Once a Grand Duke" that we will quote more than once and here we quote a conversation on pages 265 and 266 with Baron Anton Egorovich Zaltsa who was a Russian general of German origin that was one of the commanders of the western front:
"A long talk with Saltza and his staff demonstrated to me the existence of a situation which I thought abnormal and which was to continue throughout the twenty-six months of Russia's actual fighting. I learned that the army of the Russian Empire was to be used by Great Britain and France as their mammoth shock-absorber and that our commanders were to be guided in their strategy by the order to save Paris "at no matter what cost". In terms of human lives it meant we should sacrifice some five hundred thousand officers and soldiers in our ill-timed offensive on the eastern front for the sake of "easing up the pressure against Paris," a far-away alien city whose name had no sentimental sound for our men and whose ultimate fate meant nothing for the future of our country.
While our fourth army fought the onrush of the Austrians, our first and second armies invaded East Prussia, heading with their eyes open straight for the trap prepared by Hindenburg. The bulk of the second army consisted of the Imperial Guards Corps, the best trained troops of Russia and chief mainstay of the Imperial regime for the past fifty years, now thrown into the inevitable slaughter for the Great Glory of Paris.
We cursed and raved. All diplomats should have been put in the ranks if they wanted to participate in this war. But orders were orders. Our soldiers died without a murmur. The second army ceased to exist, its commander, General Samsonoff, using his last bullet to avoid the humiliation of being taken prisoner. Paris was saved by a hecatomb of Russians killed on the Masurian marshes in East Prussia. Humanity at large preferred to remember that Battle as "Joffre's victory of the Marne".
Our next quote comes from page 295 which is quite germane to our present so-called Ukraine problem which we as the Germans initiated to weaken Russia in the 2014 Kiev Coup which would be like the United Nations voting to give back the territories we took from Mexico except the Russians have more right to the Ukraine than we have to California:
"Fight for the immediate Ukrainization of the Ukraine"
This last one--a masterstroke of German strategy--needs to be explained. The word "Ukraine" referred to the immense Southwestern district of Russia, bordered by Austria in the west, the Central provinces in the north and the Don district in the east, with Kieff (Kiev) considered as its capital, and Odessa on the Black Sea its principal port exporting wheat, grain, sugar, etc. Four centuries before it served as a battleground for the continuous skirmishes between the Poles and the bands of free Cossacks who called themselves "Ukrainians". Czar Alexei Michailovich took it under his scepter in 1649, and in the course of years it became stupendously prosperous, Catherine the Great being the first to see its agricultural and industrial future. Ninety-nine per cent of the population spoke, read and wrote Russian, but a small coterie of fanatics insisted on equal rights for the Ukrainian language. They were ridiculed in numerous cartoons; in fact, the Kentucky mountaineers demanding the usage of slang by Louisville-school teachers would have been much less ridiculous.
Kaiser Wilhelm frequently teased his Russian cousins on this subject, but what had been a joke before the revolution suddenly acquired the dimensions of a nightmare in March, 1917.
The leaders of the Ukrainian Separatist Movement were quickly summoned to German Headquarters and promised the status of a free state, should they succeed in paralyzing the rear of the Russian Armies.
Millions of leaflets flooded Kieff (Kiev) and the adjoining towns. "Russians must get out of the Ukraine." demanded their authors. "If they want to continue this war, let them fight on their own soil."
A delegation of irate nationalists left for Saint Petersburg and demanded a new Government permission to organize a Ukrainian Army consisting of then soldiers serving in different corps of the Russian Army. Even the most radical members of the Provisional Government understood the whole thing smacked of treason and threatened to explode the army from within but the Bolshevik leaders of the soviet rallied to a man to this insane project (Editor: Guided by the Rothschilds through German General Ludendorff. This incredibly follows the BND-CIA coup in Kiev in 2014.) The Ukrainian demand was satisfied. Almost, simultaneously the German General Staff started taking divisions off the eastern front and sending them to France. The Russian steam-roller had been shot to pieces.
So does history repeat itself in the Ukraine again. We have pointed out elsewhere the US should never have become involved in World Wars One and Two and what the above history does prove is that the instincts of Donald Trump have been right in his desire for detente with Russia which has been the source of his friction with the intelligence agencies.
Let us see how familiar this corruption of pre-World War One Russia is to our time just prior to World War One quoting again from Archduke Alexander:
"The remaining hundred days of peace in Russia before World War One were filled with gambling, sensational crimes, and a rather significant epidemic of suicides (opioid epidemic). That year they danced the tango. The languorous tempo of its exotic music sounded from one end of Russia to the other. The gypsies cried, the glasses clinked, and the Rumanian violinists, clad in red, hypnotized inebriated men and women into a daring attempt to explore the depths of vice. Hysteria reigned supreme.........and wild orgies.
Every conceivable variety of vice was paraded before the juries in the sensational murder trials of the time and broadcast by the newspapers for the edification of our youth (Monica Lewisky-Clinton unnatural vice hearings before Congress). ...... St. Petersburg refused to be "outsinned" by Moscow in orgies" (New York City and Washington compete as to which can be more evil).
This was stimulated by the hysterical frenzies in money market on the manipulated financial markets directed by Baron Eduard in his effort to bring down the Tsar (1929 Roaring Twenties or America's widespread depravity today exemplified by sodomitic marriage and the sponsorship of ten billion abortions worldwide when you add to the holocaust the after morning pill).
"They practiced a system registered in Russia as "American" but referred to by another name in the financial circles of the United States. They performed no miracles. They disclosed no exceptional genius. The accumulation of their wealth was made by the extreme leniency of the Russian banking laws (2008 and 1987 America), which permitted the directors of saving institutions to exercise unrestricted control over the choice of securities purchased with the funds of the depositors. (The leverage was at 15% as assets were pyramided. Markets became a speculative mania.) Mergers followed each other in rapid succession. At the end of a short period, the virtual guardianship over the bulk of Russian capital passed into the hands of three individuals. The consequences can well be imagined (Bain Capital, Goldman Sachs, Morgan Stanley, etc.).
A factory owner refusing to sell his factory to the "trust" ran the risk of seeing his credit cut. Commercial competition was becoming a thing of the past (Standard Oil, US Steel combined under J. P. Morgan and the Rothschilds to eliminate competition as Microsoft destroyed Netscape). The wages of labor fluctuated, depending on the requirements of the stock market (just wage?). Whenever a better statement of earnings was required, down went the wages. The Minister of Finance sat on the sidelines hoping to be taken care of himself by being rewarded a bank presidency (our corrupt Federal Reserve Open Market Committee Members look for their reward similarly form Wall St. after doing the bidding of the major financial house by jobs at high salaries and other perks. They compete in their corruption with the Supreme Court and the Congress.)
What is most interesting that these financial buccaneers financed the Bolsheviks under orders from Baron Eduard de Rothschild. The Rothschild newspapers attacked the Tsar but were curiously silent regarding these swindles (as in 2008 and 1987). "These nouveau riche swindlers (Michael Milken) sponsored the Bolshevik Maxim Gorky by a loan of several million rubles by the Siberian Bank, to establish "The New Life" newspaper and the monthly "The Annals". Both publications counted Lenin as their chief collaborator."
"Nothing could be stranger than the desire on the part of the "trust" to keep the fires of the revolution burning. (Not strange at all if this fellow, Grand Duke Alexander in his "Once A Grand Duke", excerpted from chapter entitled "The Eve", had only understood that the destruction of Russia was carefully planned by Baron Eduard de Rothschild. So it was also in 1991 by Baron Jacob Rothschild and his looting oligarchs in Russia.
Nor does Putin have the courage to remove Elvira from the Central Bank who is controlled by the west and is ruining the Russian economy as Powell is ruining it for Trump. Nor the moral courage to stop abortion or teach as Stalin to the children in the schools against onanism as described above. Stalin found a Russia so perverted that 98% of the girls were practicing solitary onanism according to what the Russian doctors told Dr. J. H. Kellogg who was Henry Ford's favorite doctor. Stalin taught in all the Russian schools that the conjugal act was restricted to procreation in marriage as taught by Saint Augustine in his "On The Good of Marriage, and thus during menstruation, nursing, or pregnancy it was forbidden. Masturbation and onanism was forbidden.
The Government first refused to believe the informers of the Secret Police but there was no sense in arguing the facts. A raid on Nicholas Paramonoff, one of the richest men in Russia, produced documents establishing his participation in the group of multi-millionaires who financed the printing and the distribution of Bolshevik pamphlets throughout the country."
And that ends the quote. So does history repeat itself in the Ukraine again. We have pointed out elsewhere the US should never have become involved in World Wars One and Two and what the above history does prove is that the instincts of Donald Trump have been right in his desire for detente with Russia which has been the source of his friction with the intelligence agencies. President Trump is hemmed in by the "system" which has not let him accomplish the reduction of the trade deficit, detente with Russia, the immigration wall, or the currency rigging so that they can get rid of him as a failure in 2020. The Chairman of the Federal Reserve Board even had the impudence to raise interest rates during a stock market crash that will raise the value of the dollar increasing the trade deficit in order to sabotage the last Congressional election so Trump would lose.
Scroll down for conclusion.
It is noteworthy that the oligarchs in Russia and the Ukraine are the same traitors to Russia as Trotsky, Zinoviev, Kamenev, and the today's Abramovitch, Vekselburg, etc. These are the new Yevraskaya or Yevsek Bolshevik element reporting in this case to Baron Jacob Rothschild instead of Baron Eduard de Rothschild who financed the looting and spoilation of Russia which continues. The wolves just changed from sheep's clothing to new attire. They are the same wolves we have on Wall St. who as similar Trotskyite oligarchs rob the US by manipulating markets and then use this power to morally destroy it by promoting sodomy and abortion. This can be found below in additional articles where their manipulations are described in great detail.
David Lifschultz
THE LIFSCHULTZ ORGANIZATION
DAVID@LIFSCHULTZORGANIZATION.COM
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September 29, 2020
DOLLAR DOOM
There is nothing inevitable about anything unless Heaven issues the decree. If the US follows prudent policies, the dollar does have to be allowed adjust by floating to its intrinsic value which is far below today to draw back our industry from foreign nations. What has happened is that foreign nations have bought the dollar to hold it up so that they could dump their manufactured goods on the United States. This is particularly true of Japan whom we allowed to do this to build them up against China after World War Two while we allowed the Germans to rig the dollar upward so that we could build them up against Russia as part of our policy of containment of Russia and China. The same principle was applied to South Korea. This was the foundation of NATO, SEATO and the EU.
The total debacle of World War Two came about as we fought Germany and Japan to prevent them from holding hands after defeating Europe and China thereby controlling the Eurasian land mass only to find in 1949 that the Russians and the Chinese held hands controlling the very land mass that we had fought Germany and Japan over. We essentially created the vacuum that Russia and China moved into. It was a colossal blunder.
This was realized in this exchange between Goering and Hitler:
Goring: They (Britain and America) entered the war so that we would not reach the east (Japan in China), but not so the East (Russia) would reach the Atlantic.
Hitler: That's quite clear.
Source: "Hitler And His Generals", the stenographic record of military conferences, page 649.
And by Stalin:
We (Milovan Djilas and Stalin) stopped on our way to the dining room to view a map on the wall of the world where the Russia was colored in red. Stalin waved his hand over Russia and said: "They (the US and Britain) will never accept the idea of such a great space should be red, never, never!"
"Conversations with Stalin" by Milovan Djilas, page 74.
In other words, the United States lost World War Two whose sole purpose was to prevent the Eurasian heartland from going under the control of antagonistic powers only to find themselves that way in 1949. This war was not fought against National Socialism or Japanese fascism, but purely over the geopolitical balance of power concept of Halford Mackinder.
The US President Franklin Roosevelt, a student of the naval geopolitician Alfred Thayer Mahan, sent notes to Stalin and Hitler weeks before the invasion of Russia took place saying that if Russia invaded Germany the US would side with Germany and if Germany invaded Russia the US would side with Russia. This is pure Mahan-Mackinder geopolitical thinking. That is why Stalin said before June 22, 1941 that he had complied with all agreements with Germany which was for Roosevelt's benefit as Stalin was aware from Richard Sorge that Germany was about to attack Russia on that date which was the anniversary of Napoleon's invasion of Russia. He wanted Roosevelt to know that he had complied with the "Molotov-Ribbentrop Pact" in every way and was innocent. The trains from Russia carrying natural resources for Germany were traveling to Germany that day.
The US got the message and was then set on moving against Germany going through the back door of Japan. On July 25, 1941 when the US military thought that Russia was about to fall, Roosevelt urgently moved to cut off 92% of the Japanese oil in the hopes that Japan would counter this act of war by an attack on the US so the US could enter the war on the side of Russia to save it. It was not that the US loved Russia but feared the power of Germany and Japan controlling the Eurasian heartland which according to Mackinder was tantamount to the control of the world. The US would use the back door of Japan to enter the war against Germany as it was believed that Germany had a secret agreement with Japan to enter the war if they went to war with the US. This was why Roosevelt would not notify Admiral Kimmel in Hawaii of the coming Japanese attack on December 7, 1941as the US had broken the Japanese military naval codes revealing this. The reasoning here was that if Kimmel prepared for the attack the Japanese would call it off based on local spies as they wanted total surprise as at their attack on Port Arthur on February 8, 1904 in the Japanese attack on Russia. This would have frustrated Roosevelt's goal to enter the war against Germany. As on the 9-11 false flag operation where 2,911 died to create a justification for wars to secure the US oil supply in the Middle East by blaming Islam for an attack that they had no part of wheres at Pearl Harbor over 2,403 US soldiers died less 68 civilians to achieve this geopolitical goal. 9-11 was another Gulf of Tonkin.
When Stalin and Mao later joined hands over the ruins of World War Two, the reaction in the US was McCarthyism not really based on anti-communism that McCathy's Chief Counsel Roy Cohen described to me merely as a passing fad, but a shift in the balance of power against the United States.
The protege of Halford Mackinder in the United States was Nicholas J. Spykman who is regarded as the godfather of containment as outlined in his book in 1942 entitled: "America's Strategy in World Politics. The United States and the Balance of Power" which explains the guiding principle of the United States in World War Two as follows:
"The statesman who conducts foreign policy can concern himself with the values of justice, fairness, and tolerance only to the extent that they contribute to or do not interfere with the power objective. They can be used instrumentally as moral justification for the power quest, but they must be discarded the moment their application brings weakness. The search for power is not made for the achievement of moral values; moral values are used to facilitate the attainment of power." (Page 18)
This amoral idea is not new to modern times as Thucydides points out:
"We both alike know that into the discussion of human affairs the question of justice only enters where the pressure of necessity is equal, and that the powerful exact what they can, and the weak grant what they must.
It is this amoral view that led to the fall of England as expressed by Lord Palmerston below and now leading to the fall of the US:
We have no eternal allies, and we have no perpetual enemies. Our interests are eternal and perpetual, and those interests it is our duty to follow.
speech, House of Commons, 1 March 1848
As Napoleon said, the moral is to the material in war as three is to one. Or as Queen Victoria expressed it when she said that the great power of England was solely due to their adherence to the King James Bible. England has fallen as a world power because it abandoned all morality just as the US is falling.
The US entered World War One for geopolitical reasons for after Germany defeated Russia it could not allow Germany to overrun Europe. This would give most of the Eurasian land mass to Germany which could not be tolerated. It had nothing to do with making the world safe for democracy which was the propaganda model of Edward Bernays just as the war against Germany in World War Two had nothing to do with National Socialism. The cold war against communism had nothing to do with communism but with breaking the power of China and Russia who controlled too much of the Eurasian land mass. Thus, they had to be contained and defeated.
When China opened up to the US in 1972, Richard Nixon, an old McCarthy hand, ran to China to ally against Russia though Chairman Mao represented a pure form of communism. We have outlined this history in the footnote one but in summary we defeated Russia who collapsed in 1991 with Chinese help. Today when China has moved close to Russia for their natural resources, China has become an enemy again for geopolitical reasons as in the days of Mao and Stalin. The US wants the Russian natural resources for Europe under a Russia that US controls through the oligarchs which is why it has not yet agreed to Kissinger's balance of power idea of playing Russia off against China, and to force China to obtain their natural resources by ship so it can control China through its rule of the waves with eleven carrier task forces.
The problem with the military-industrial complex in the United States is that they agreed after World War Two to sacrifice the major industries of the US by allowing rigged currencies to build up our allies which has essentially destroyed the very basis of the US geopolitical power. This was pure madness. This is happening right now as their paid off representative General Mattis decries Trumps attacks on Germany and Japan over currency rigging as treason to our geopolitical goals against China and Russia. Thus, the military-industrial complex, the seventeen intelligence agencies, the FBI and the other apparatuses of the deep state are trying to destroy President Trump for that reason. Clapper and Brennan consider themselves as doing their duty. Wall Street chimes in with their controlled media as Trump wants to end the currency rigging which is so profitable to the Wall Street financiers that rig just about everything including half the trades on the New York Stock Exchange that are part of the systemic trading linked to the cash settlement manipulation that loots trillions of dollars from the Americans.
My recommendation from forty years ago to preserve American industry was repudiated by Wall Street influence on the deep state. I was there to witness it and tried to prevent it. Even though I knew this correspondence below in 1997 would not be accepted, and Mr. Rubin had merely been kicked up to the Treasury position as his usefulness to Goldman Sachs was over after the Milken era as he was utterly incompetent, he ran to number one in fear. I received a call asking why I had written this correspondence from number one, and I said it will be useful to me at some date in the future as now. It is a tragedy that Wall St. has destroyed the industrial power of the United States by supporting the rigging of the dollar upward to make foreign goods cheaper to sacrifice American industry. Mitt Romney at Bain Capital made a fortune out of buying US manufacturing companies, laying off the Americans, and sending the factories to Asia. Here is the exchange of correspondence with the then Secretary of the Treasury Robert E. Rubin.
Robert Rubin Correspondence – David Lifschultz
I worked with Chuck Schumer when he was a Congressman organizing the Republicans and he organizing the Democrats to block an IMF appropriation in the House of Representatives using it as a tool against currency rigging. It created fear around the world that the jig was up as to currency rigging. However, number one called him and he dropped out. He was being groomed for better things. The point here, though, is that number one or what they call the deep state controls both the Republicans and Democrats, the corrupt Supreme Court, the corrupt Congress, and the corrupt presidents before Trump except Andrew Jackson and except Donald Trump. Donald Trump and I were once boxed into a corner by a partnership we were in that had political ramifications and he called me saying that this is the system at work and you have to work within it. It was not too different to the currency rigging. What he did not know was that I was about forty levels above the system than he was. What Donald Trump has to do as Andrew Jackson is act for America by stopping the illegal immigration destroying the American wage base, stop the currency rigging, and create detente with Russia and China which gave him the election in 2016. Americans do not want war; they want good jobs.
Schumer Warns Trump: Intel Community Has Many Ways to 'Get Back at You' (FLASHBACK)
In footnote two we add the dimension of the discussion the control of the deep state by international finance as the predominate force in world affairs for the past 250 years.
Dollar doomed as China shifts to consumption
A changing US-China relationship means a forex correction is the only way to rectify the imbalance
By UWE PARPART And DAVID P. GOLDMAN SEPTEMBER 20, 2020
Morgan Stanley’s former Asia Chairman Stephen Roach and Bridgewater founder Ray Dalio, among others, have recently warned that the US dollar may lose a third of its value. A chronically low savings rate, a large current account deficit and a huge federal financing requirement, Roach argued, will force a sharp devaluation of the US currency.
Declining empires and declining currencies stumble along until something comes along to put them out of their misery. Post-WW2 Britain is a case in point. Once the dominant world power, it issued the world’s main reserve currency and ran a chronic current account deficit. It allowed its industrial base to deteriorate and its skills to stagnate. The market for British assets eventually cleared as the British pound fell by almost two-thirds between 1967 and 1985.
Without a fundamental change in Washington’s attitude towards US industry and technology, something like this will happen to the dollar as well.
Today’s challenger is China.
From 8.28 to the US dollar prior to 2005, the Chinese yuan rose to just above 6.0 by 2014. It’s hit some turbulence since then. But a look at the US and Chinese currencies’ fundamentals shows that the recent march from 7.15 to 6.75 will have staying power and lead 6.00 in the medium term, in the course of 2021. The longer-term target is a 30% rise to 5.00.
The symbiosis between the US and China that pundits used to call “Chimerica” is dissolving, and the result of this dissolution will be a drastic depreciation of the US dollar.
The world’s two largest economies enjoyed (or suffered from) a symbiotic relationship during the past three decades. China saved and invested, America borrowed and consumed. China (and South Korea, Japan and Taiwan) built the plant and equipment that produced the industrial products that America consumed.
China’s high savings rate created a chronically high current account surplus, while the United States had an extremely low savings rate and a correspondingly large current account deficit. China wanted to accumulate reserves and the United States wanted to buy consumer goods. The reserve-currency status of the dollar drew China’s savings into US capital markets.
China and America in key respects thus are mirror images of each other. The rise in China’s national savings rate was matched by a decline in America’s national savings rate.
Household consumption forms a larger proportion of GDP in the US than in any other big industrial country except Britain, at 70% of GDP compared to an OECD average of 60% of GDP.
China’s desire to save and America’s desire to spend created “Chimerica,” or what one might call American capitalism with Chinese characteristics.
- China ran a chronic trade surplus with the United States and invested the proceeds in US capital markets;
- China kept relative prices for its goods low in order to gain export market share;
- China invested in manufacturing capacity and industrial infrastructure while the United States reduced investment, such that Chinese savers made the investments required to supply the US with industrial goods;
America made a decision not to invest, and Asia (China, S. Korea, Taiwan and Japan) did the investing for America.
Prompted by the deterioration in US-Chinese relations as well as domestic political considerations, China is shifting towards a regime of lower savings and higher consumption. That requires a corresponding structural change in the other half of Chimerica which, however, the United States is ill-prepared to accomplish. That leaves the exchange rate as the only mechanism of adjustment.
First, let’s review the facts.
The capital intensity of China’s economy increased drastically during the past 40 years while the capital intensity of the US economy declined.
America’s GDP shifted towards consumption (70% of total vs. an OECD average of 60%):
As the US savings rate declined, the current account deficit widened.
The capital intensity of the Chinese and South Korean stock exchanges, correspondingly, increased while the capital intensity of the S&P 500 remained static.
The sudden collapse of household consumption and corresponding jump in the savings rate caused by the pandemic lockdown revealed the inherent fragility of an economy heavily skewed to consumption. Precautionary savings during the pandemic lockdowns raised the personal savings rate to a never-before-seen 18% of GDP, and the volume of savings doubled from the level prevailing during the 2010’s.
Gross private saving rose from $5 trillion to $8 trillion at an annual rate. Gross private investment meanwhile fell to a $3 trillion annual rate. The jump in the 2nd quarter savings rate, to be sure, corresponded to a 32% annualized rate of GDP decline.
The American economy collapsed at an unprecedented rate when American households stopped spending. To compensate for the jump in saving, the Treasury and Federal Reserve dis-saved by spending trillions of dollars on income subsidies and direct purchases of securities. This had the same effect as pumping air into a leaky balloon. The massive increasing in Federal spending and the expansion of the Federal Reserve balance sheet restored part of the lost consumption (still running about 6% below 2019 levels), without contributing in any way to future economic activity.
Domestic savings and the Fed balanced sheet financed the flood of Treasury debt issuance, unlike the situation after the 2008 crisis, when foreign investors increased their holdings of US Treasuries.
The US can’t sustain a high savings rate without a severe decline in economic activity. Meanwhile government dis-saving will remain extremely high. The willingness and capacity of foreigners to send savings to the US has diminished. Something has to change, and that something is the exchange rate: US assets have to cheapen sufficiently for foreigners to buy them. Rising inflation also will motivate higher savings (as wealth declines, individuals save more to compensate).
A decline in China’s propensity to save implies that the United States must save more. As noted, that is exactly what American households and corporations did at the outset of the pandemic lockdown. But household savings was counterbalanced by government dis-saving. The US is suffering from a version of the “Red Queen effect,” as in Alice in Wonderland: It has to spend faster just to remain where it is.
In principle, the United States could introduce incentives for high tech investment (tax breaks for capital-intensive industries, R&D tax credits and subsidies, and so forth) to make capital assets more attractive and encourage savings for the purpose of investment. This sort of approach doesn’t appear to be on the agenda of either political party.
The other way to correct the savings deficit is through dollar devaluation and inflation. A cheaper dollar will reduce consumption by increasing the price of imported consumer goods, including the consumer electronics that comprise the lion’s share of America’s imports from China. It will also reduce the price of American capital assets including Treasury securities, and encourage foreigners to buy them – after the dollar hits bottom. Inflation, as Prof. Robert Mundell observed in a classic 1965 article, also prompts individuals to save more, because it reduces their wealth, leading them to save more to compensate.
That’s why a devaluation of the dollar on the scale of the long, sickening slide of the British pound, currency of a Britain once Great, is the predictable fate of the US dollar.
Footnote One:
CLASS WARFARE IN THE US
DAVID K. LIFSCHULTZ
As we wrote in the "Introduction to Goethe, Faust and the Euro" in footnote one, the US foreign and commercial policy is tied to geopolitical objectives. The build up of China from 1972 was to oppose Russia which did not matter even if it wiped out American jobs, and now that China and Russia are allies as of 2014, the US wants to move the Chinese production for the US and other markets to South America. It is not that the US cares about the people of South America because they do not little wonder when it does not even care about its own people.
The Wall Streeters Class hatred against its own lower classes is exemplified by the attack on the Middle Class and lower classes by offshoring US industries and importing like blocks of stock third world bodies to man the few factories that are left whose supply drives down the American wage. We have not seen such class hatred in the Anglo-Saxon world since the Enclosure Movement in England in the 19th century when the aristocracy cast their peasants off to the cities when they converted their estates from agricultural farming to raising sheep for the textile industry. This was the squalor of the then greatest nation in the world where the upper class luxury was contrasted by Charles Dickens to the squalor the English inner cities. Where did all the money go from the increase in industrial productivity? Not to the displaced peasants.
What we see in the new US initiative for South America is an effort to move production from China to South America as merely a change in venue. There is not the slightest consideration for moving the jobs back to the United States. The move of manufacturing to South America is to geopolitically block Chinese inroads in South America already quite extensive in themselves as well as to close the supply chain in China itself.
This ties into our manipulated currencies where the dollar is kept strong so that it can import cars from Germany, etc. while Germany destroys the industrial infrastructure of our own nation. These German cars should be made in the US as our others based on 100% of the content made here. The US military industrial complex supported this policy by maintaining the German car imports to please our ally at our expense. in their opposition to Russia. It was pure folly.
Robert Rubin Correspondence – David Lifschultz
The trade war against China is senseless as a balanced of trade between the US and China could have been worked out as originally planned, but now we face the trade deficit growing even larger as China is merely replaced by South America. The US Military Industrial Complex is proving itself to be self-destructive.
Footnote Two:
The essay below proves that the US has never been in a war about true idealism but power.
AN INTRODUCTION TO GOETHE, FAUST AND THE EURO
DAVID K. LIFSCHULTZ
The precipitous and calamitous decline in US power from its undisputed peak as the sole world hegemon in 1991 on the collapse of the Soviet Union has to be marked as one of the greatest turning points in history. We demonstrate this both in the military analysis included in this paper and the study of the dying United States dollar. We follow in this study the classical authorities and some of the key points in Carroll Quigley's "Tragedy and Hope".
It may not appear to most observers that this has happened as it did not appear that the greatest army in the world in France that had held back the Germans in World War One would collapse in 1940 in twenty days. Just for the reader's information, the nations of the EU today, or NATO, would not last two weeks against the Russian shock armies as that is how long it would take them to reach the English Channel as the preponderant US airpower would be nullified in ten minutes by Russian missiles destroying the NATO airfields. Tsar Alexander I accomplished this against Napoleon though it took Alexander I longer.
How did this Russian rearmament come about? This answer will require a short excursion into history. Anglo-Saxons have followed the Roman tradition of balance of power as their schools taught Latin and Roman history. This has nothing to do with morality even though Queen Victoria rightly said that the King James Version of the Bible was the source of all the British power. It is interesting to note that the English abandonment of the Bible is the primary source of their decline of power. Anglo-Saxon foreign policy was rather guided by the balance of power under the ethics of Lord Palmerston when he said:
"We have no eternal allies, and we have no perpetual enemies. Our interests are eternal and perpetual, and those interests it is our duty to follow."
The Anglo-Saxons engineered the war between Russia and Germany in World War One to destroy Russia though Russia was an ally of the Anglo-Saxons (US and England). England was afraid of Russia moving to India which would have been indefensible for England to protect from a million man land army based simply on the problem logistics. England's other problem was Kaiser Wilhelm who started to build a fleet threatening the English control of the oceans. It was decided to kill two birds with one stone by World War One. The utter defeat of Germany and Russia pleased His Majesty's government. It was a total victory.
The rise of Stalin's Russia worried England after World War One and so it was decided again to nullify Russia by building up Germany for another go at it. Stalin was an extraordinarily capable and cagey operative who had been spying on the Bolsheviks as an Okhrana agent under Pyotr Rachovsky and was swept along in the Bolshevik Revolution. He had liquidated by 1938 all the Trotskyites who had massacred the Tsar, his family and the royalists. If the Chief Prosecutor Andrei Vishinsky's denunciation of the Trotskyites during the Moscow Treason Trials between 1936-1938 are read, it is found to be almost Biblical in their tenor which can be attributed to the studies by Stalin in Seminary until he was twenty. He taught in the public schools the holy Christian concept of marriage of Saint Augustin restricting the marital act only to procreation and all children were to taught to avoid all forms of onanism. You will not find anything of this kind in the writings of the bloodthirsty guttersnipe Trotsky.
When Hitler took over in Germany in 1933 the United States and England following their balance of power doctrine lent Germany one billion gold dollars from the US and two billion gold dollars from England which today is in excess of 300 billion fiat dollars if not more. This was to build Germany up against Russia and at the Munich Conference Stalin was not invited as it was designed to build Germany up and was hardly a form of appeasement. The goal once again was to see Germany and Russia destroy themselves. Stalin clearly saw this and allied with Germany in 1939. England was shocked.
While the truth about the Hess trip to England has not been revealed, the English clandestine overtures to Germany were to encourage them to invade Poland and then Russia. This is why the English and French Armies were idle allowing Germany to concentrate all its forces against Poland leaving a light screen of troops on the border facing the British and French troops. If Britain and France had invaded Germany as they promised, the German Army would have been split in half.
The problem the Anglo-Saxons faced after World War Two was that Stalin's Russia was not destroyed as the Tsar's, and Stalin controlled Eastern Europe and by 1949 was allied with China shifting the balance of power against the Anglo-Saxon nations. In essence the Anglo-Saxons has lost World War Two for instead of Germany and Japan controlling the Eurasian land mass it looked to be Russia and China. George Washington's "Farewell Address" that the US should not get involved in European conflicts was proving true.
This was a total and costly fiasco.
The Anglo-Saxon reaction was to adopt a policy of containment seen in the Korean and Vietnam Wars, and reversing course on their German vilification campaign to bring them in as an ally against Russia to balance the power and the German's obliged based on the end of their vilification. Hence NATO was formed and the Russians formed the Warsaw Pact on the other side. Russia's eastern boundary was secured by their ally China. Stalin's death wrecked Russia as a group of nonentities took over, and Chairman Mao could not stand the buffoon Khrushchev. Sino-Russian relations went from bad to worse after Khrushchev's denunciation of Stalin in 1956. By 1972 the border conflict almost had led to war and the anti-communist McCarthyite Richard Nixon ran to Beijing to embrace Chairman Mao as an ally against Russia.
Let's pause for a moment to ponder this. Here was a fervent anti-communist embracing a very pure form of communism in China which tells us that communism or national socialism had nothing to do with World War Two, nor did making the world safe for democracy have anything to do with World War One, but purely balance of power ideas of Halford MacKinder combined with the creed of Lord Palmerston. The gullible masses who were hated as cattle were to be the cannon fodder fed by the propaganda of Edward Bernays manufacturing of consent with the usual lies as in the coronavirus.
Once Nixon had his alliance with China sealed, the strategic significance of Vietnam was over, and we abandoned the place in 1973. Now China was an ally and we tried to strengthen them against Russia. But it was not until Deng Xiaoping took over that China accepted the terms of our massive build up. The US switched from Japan who was allowed to go sideways and built up China. Japan was no longer important to contain China who was now our ally against Russia. Japan was superfluous.
We taught China how to use their central bank to finance only productive investment as Dr. Schacht did for us in Germany when we built them up, and allowed China to take over our US market from Japan. We built up China to be the largest economy in the world. In the meantime, Russia looked with horror at China and had 400,000 troops tied up at the border. They were bleeding when Jimmy Carter took over.
Carter was a quite underestimated President in this sense. He did not initiate any wars for the US. He and Brzezinski decided to give Russia a Vietnam in Afghanistan to destroy Russia and in 1979 this program was launched. It was a Roman war by proxy.. It was clever. Now Russia was draining by the Warsaw Pact for 600,000 troops, and 400,000 on the border of China, and now they were bleeding in Afghanistan. When Reagan takes over Casey was assigned to go to the Gulf States to order them to flood the world with oil driving oil to eight dollars a barrel to destroy half the Russian budget. That combined with the fictitious PYSOP Star Wars campaign, and Russia was going bankrupt. The display of advanced US weaponry in Gulf War One was the last straw for Russia. They lost their nerve and collapsed.
Here the US took the position that they would not accept Russia into the community of nations as the Prodigal Son in Luke as they publicly avowed but tear them apart into 50 countries run by oligarchs whose sole purpose was to supervise the looting of the oil and other natural resources and let the masses be damned as in the Ukraine.
The BND and the CIA fomented the Yugoslavian disorders in the 1990s Sudetenland style to weaken Russia further and bombed Belgrade for 78 days in 1999. Russia woke up from their delirium by this 1999 78 day bombing and moved to rearm. The first eight years were to develop offensive and defensive missiles and the next twelve were to include the modernizing of the army. This has largely taken place. The 2014 Kiev Coup was to draw them into another partisan war in the Ukraine as we did in Afghanistan. This time Russia did not bite only taking back the Crimea and the the coal states of Donbas and Luhansk.
When China saw this Kiev Coup it was quite obvious what the US was doing, and they became quite worried as they were a net importer of natural resources and Russia was the natural place to look for it. They did not want to lose Russia to the Euroland. Also, they were too dependent on the seas patrolled by 11 US carrier task forces and they needed to turn to the Eurasian land mass to divert their trade from the seas to land by high speed trains that could go from China to Europe in 48 hours. Russia could supply all their natural resources and they could supply all the technologies that Russia required. This was part of the vision of the BRI or Belt and Road Initiative. This required a rapprochement with Russia and an alliance. The United States could not accept this alliance out of balance of power fears, and this is the sole cause of the present friction between the US and China. This ends our short historical excursion.
Professor Quigley had two famous students who made their way in the world which were former President Clinton who praised him to the skies in his "Inaugural Address" and HRH Prince Turki al Faisal, the former head of Saudi Intelligence (Al Mukhabarat Al 'Ammah). In my conversations with Bill regarding Professor Quigley, he said that he followed Quigley's concept that technological advancement was the basis of the advance of all civilization as outlined in Quigley's book "The Evolution of Civilization" and this was the foundation of his entire political career. His greatest obstacle to achieving these goals was the institutional bias against change which he resolved by creating the dot.com era that Bill said he did not care if 99% of those companies went bankrupt as long as the 1% drove the United States economy forward. This approach worked amazingly well and Bill left the presidency with such giant budget surpluses there was fear that in no time that entire national debt that is now around 21 trillion dollars would be paid off. Even Arthur Laffer, the inventor of the Laffer Curve, in a recent debate sponsored by the Wall Street Journal, praised the former President as creating such great incentives to growth.
I had gone to school with Prince Turki at the Hun School of Princeton, and had flown to see him when he was Ambassador to London as the US was about to invade Iraq under George Bush II to see if we could work out a plan to stop the invasion, and my colleague held secret talks with Saddam Hussein and his generals offering them incentives and safe passage out of Iraq if they would turn over the country to a leader of our selection. This would have avoided the destabilization of the entire region as the destruction of the Sunni Iraq tilted the balance of power in the favor of Iran. Saddam and the generals agreed but later Saddam reneged. The generals withdrew at the siege of Baghdad which was therefore won relatively without cost and received their reward.
It looked as though President Clinton was establishing what Quigley called a reorganization of western civilization so that its dynamic growth could continue. In essence, Clinton found the US in a form of stagnation as the GDP growth figures were pure fiction based on the falsification of records where inflation was eliminated by removing from the CPI commodities or goods with rapidly rising prices with lower prices for supposedly comparable items. This falsification continues. The switch by George W. Bush to endless Islamic wars as planned far in advance of the 9-11 false flag operation created trillions of dollars of expenses diverting from productive growth to non-productive military appropriations for meaningless brush fire wars. We see this is in the industrial collapse in the rust belt and the debilitation of our infrastructure. All that Clinton created was destroyed. Bill bewailed to me that his work was needlessly being thrown away. And the United States continued on its path of ruin until President Trump began trying to rebuild the destroyed American industry by stopping the rigging of currencies as indicated next.
Robert Rubin Correspondence – David Lifschultz
Quigley in his introduction compares western civilization to others that have declined and fallen before it. In the case of the Canaanite civilization who descended from Noah's grandson through Ham the core or beginning of that civilization was located in and around Tyre and Sidon. Tyre was famous as a great seafaring power which was similar to later seafaring nations as Venice and England and now the United States. This Canaanite civilization in Tyre planted colonies in areas such as what became Carthage, and interestingly enough, Carthage grew to be a greater power than Tyre. I use that example as that was very similar to what happened with the colonies of England so as England declined as a great power its colony the United States surpassed it as Carthage had surpassed Tyre. Although Quigley does not attribute this to moral decline as he should but rather to the core (Tyre and England) diverting their time to pastimes as pleasure, art, ideas and leisure instead of material work, the non-core Puritanical United States focused only on work or materialism as pleasure was a form of sin to the Puritan founders of the US. Thus peripheral areas became militarily stronger than the original core civilizations.
Western civilization developed from the classical civilization of Greece (Elisha or Hellas) and Rome (Javan as in Ionian Sea) or the descendants of Japheth son of Noah, and the power initially started in Greece but transferred later to Rome (Tiras). The Europeans are descendants of Tiras and the Russians Meshech (Moscow, or Rosh Meshech as Russia-Moscovy as the center of Russia) the descendants of Japheth. This is western civilization. It incorporated the Bible that was transmitted to them by the descendants of Shem.
However, the United States is presently in a state of moral and material decline almost unprecedented in history. 70% of its 17 to 24 year olds are not fit to serve in the military largely based on the diffusion of drugs and vice as in Carthage. The Romans say they destroyed Carthage for moral reasons as it was given over to human sacrifice and sodomy which in a sense is proliferating in the west in the form of abortion and sodomy. These are signs of a massive, moral decline while power is starting to transfer to the Asian nations which are focusing mostly on the material aspects of western civilization. And the House of Representatives and Senate of the United States are acting as the Carthaginian Senate who undermined their greatest general Hannibal and are largely to blame for the irrational form of funding weapon procurement as in the twenty year F-35 whose 400 billion cost blueprints were hacked anyway by an adversary. This was paralleled in some of our history by the removal of General MacArthur from running the Korean War by a Pendergast mob frontman, and since then the calibre of our military leadership has been in a precipitous decline as no one with talent would like the mob telling him what to do as the monetary remuneration is no inducement to stay as it does not compete with industry or Wall Street. If the DIA or CIA or NSA have anyone of great talent, Google offers them a million dollars a year to come to them and off they go.
This is the introduction to the present work. It has been largely revised to cover the Quigley analysis in more detail from a previous work that we presented. Since the next exposition will demonstrate that the dollar is intrinsically worthless, it in necessary also to enter into a discussion of the waning military power of the United States which can no longer intimidate nations to use the dollar. The value in exchange of the dollar and its military power are thus inextricably connected.
Goethe, Faust and the Euro
by DAVID K. LIFSCHULTZ
We find Johann Wolfgang von Goethe’s Faust in his library in Germany around the late 18th century in a state of manic depression contemplating his forty years spent in the study of philosophy from the ancient Greeks and Romans to the the Schopenhauers, Hegels, and Kants of his day. He had nearly gone insane reading the Critique of Pure Reason and it suddenly had dawned on him that he had wasted his entire life drowned in books and that all his learning was worthless. Mephistopheles, the Devil, seeing his opportunity to prey on the spiritually weak, approached him to say all was not lost. He could make up for lost time, and offered him the most beautiful woman in the world (Margarete), and a paradise on earth with her at his side, and all that he had to do was sign over his soul on the dotted line contracting to deliver it up to him at the appointed time of his death. Our friend, Faust, tired and exhausted in studying the vain fruit of the tree of the knowledge of good and evil, decided to choose what he thought would be the new route to Paradise.
In this jolly period Dr. Faustus and Mephistopheles alighted on a Kingdom in Germany where the bankers in Frankfort had created a species or gold shortage, and thereby had induced a depression here in Holy Germany for the purpose of dominating or overthrowing this Christian Kingdom. The population was near to rioting in the streets as they were hungry, the country was is disrepair everywhere with buildings looking like they were going to crumble, and there was a distinct possibility of the King being overthrown after a thousand years of the monarchy.
Enter Dr. Faustus (Goethe) and Mephistopheles (Mayer A. Rothschild) into the King’s palace, and there they proposed the John Law remedy of paper money and credit to be created out of nothing to solve the problem of the Frankfurt gold manipulation. The King exclaimed that how could he sign off on a paper and currency that had no gold backing, and not be perceived as a fraud. Mephistopheles answered that they would put the King’s picture on the currency, and they would sign his name to the statement that the currency was backed by all the gold in the kingdom that had not yet been discovered and dug up, and that would solve whatever qualms the population might have had. The King said that it would never work and would not be the first King in his thousand year line of the Holy Roman Empire to have committed such a fraud.
Mephistopheles and Dr. Faustus then proposed a grand ball where all the beauties of the Kingdom would gather, and the liquor would flow profusely, and everyone would have a merry time. The King was plied with drink until he lost his senses, and they then put the paper currency decree into his hand, and he signed it. While the drinking celebrations lasted weeks, Mephistopheles was at work spreading the currency around and the Kingdom became prosperous and happy. Mephistopheles became the finance minister and central bank head, and coordinated with his kinfolk at other central banks. These were the same folks who had induced the depression in the first place so they could take over this kingdom that was holding out.
Nevertheless, finally the King sobered up, and in walking through the streets of his Kingdom he found that all had changed, and it was happy and prosperous. When he asked how it happened, and found it was due to his having signed the paper money and credit decree, he was furious. What a fraud, he cried. His wisest minister warned him that the new power transferred to the finance minister spelled the eventual doom of his throne, and would lead to the diabolical overthrow of the Christianity that he had sworn as monarch to support over all other things, and the total debasement of all womanhood in the Kingdom as was later seen in Holy Germany during the Weimar period. But Mephistopheles countered that it was too late, and that he would certainly be immediately overthrown if he withdrew the paper as the population was so happy and industrious. The King feared the consequences and relented.
Goethe summarized this series of events with the following poetic verse:
“I am fed up with this endless how and when,
if there is no money, let us make it then.”
And how this make believe paper works is the next part of this discussion.
“Paper money eventually returns to its intrinsic value – zero.” (Voltaire, 1694-1778)
The gold value of the dollar in 1920 was $20.67 and today an ounce is worth $1,683.86 or around 81 times more expensive or 1.228% of its earlier value. That is a 98.77% depreciation of the dollar in relation to gold.
Now, let's look at the CPI Index which is a little more optimistic giving it $3.48 in value:
Decreasing Purchasing Power of the U.S. Dollar: What's $10,000 in 1900 Worth Today?
If a shopper were magically transported from the year 1900 to 2012, the $100 bill that he had in his wallet in 1900 would now be worth only $3.48! That is, $100 in 2012 would have the purchasing power that $3.48 had in 1900; $10,000 would be worth only $348 today. That's a 96.4% decrease in buying power. Our shopper would consider current dollars virtually worthless. (Note: the calculations in the post were made using the inflation calculator introduced earlier this month.) This almost parallels the decline in relation to gold and it is worse than it looks as the CPI has been falsified by removing from it products whose price rises so much it starts to be substituted by other products. This skews the inflation rate downward. The dollar is almost all gone. The picture is worsens even more when you look at the gold behind the dollar using the unaudited gold reserves recorded to be Fort Knox and the New York Fed which are 8,133 tons or 260,370,000 ounces. If you divide these ounces into M-3 of 18 trillion you come to $69,132.38 an ounce.
It will be the fate of all paper and fiat credit systems that the monetary unit in such a vehicle will die. History is strewn with American Continentals or the French Assignats but the most curious part of the German hyperinflation which was largely caused by the overproduction of the fiat mark was that in 1923 what was left of it vaporized even though the money supply no longer was increasing. People stopped believing in it. What was even more curious was that Dr. Hjalmar Schacht created a new currency with nothing behind it and it maintained its value and he was consequently called the old wizard. Yet the Saigon currency after the North Vietnamese surrounded the city vaporized to zero. What happened to Milton Friedman's monetary theory of measured expansion or that of Keynes for that matter who thought digging for gold was as stupid as burying dollars and then digging them up? (See Keynes "General Theory" and Friedman's "Monetary History.") In each case the value that was thought to be there was what it was thought at the time to be and not what it was in reality. What this really represents really is a substitution of monetary transubstantiation making according to Karl Marx the jealous god of money in place of the Catholic transubstantiation.
Fiat money and usury are a social control mechanism that are founded on principles that according to Aristotle are against nature (Politica 1258b) in that they cannot create their own children and thus cannot create the interest to pay it back. For example, if I lend to a member of this audience the 176,300 tons of gold which is all that exists in the world, and ask for ten percent interest payable in principle and interest in a year, then the 176,300 tons of gold plus the 17,600 tons of interest cannot be paid in full as there is no gold in the world to pay the interest. In other words, the system based on gold and interest (usury) cannot work as it cannot pay the interest on the fully extended lending base. But even if we used paper, and people believed it was gold, the paper too cannot procreate. So once the money is fully lent out, then no further lending can take place nor can the interest be paid unless you hypothecate out of nothing additional paper or credit. The system would otherwise start an implosion if it were not continually hypothecated with additional credit or paper money. Such an implosion took place during the time of King Edward the Pious of England as the weaker creditors started to default first and then the stronger ones until the usurer had all the wealth of the kingdom without having done any real work. King Edward simply took all the money back from the usurers and expelled them from England hence he was known as the pious.
Dante placed the usurer in his seventh rung of Hell with the sodomist as the usurer made gold fruitful though it was not, and the sodomist made what was fruitful unfruitful. In other words it was natural to sow in the field to reap but sowing gold cannot produce an increase and the sodomist does not plow in a field where anything will grow. That is why it is against nature. He consigned both to the seventh rung of Hell for the sinners against nature and God as these sins are forbidden in the Bible. Shakespeare understood this in his play “The Merchant of Venice” in that Shylock says he makes gold fruitful like Laban’s flock that bore wages to Jacob of the ring streaked and spotted cattle but this could not make gold fruitful.
And Shylock tells us at the trial that he really wants the life of Signor Antonio because he was interfering with his control mechanism for ruling over the society for his lending without interest would drive his system of control out of business. It was through that control mechanism that Shylock controlled the state. He was offered by Bassanio ten times what was owed and refused for state control was more important than the multiple interest offered by Portia or the multiple principle offered by Bassanio. Therefore, he wanted Signor Antonio's death though the extraction of the pound of flesh that was already forfeited and not the money.
I would not recommend to the audience that anyone seek to interfere with this control mechanism as he would be striking at the roots of the control of the state of the present masters of the universe and these masters would react no differently than Shylock who wanted his pound of flesh as that would have ended the threat by slaying Signor Antonio the representative of the love your neighbor as thyself state. The Rothschilds and Barings as Lord Byron points out in his poem "Don Juan" replaced the sovereign monarchs of Europe as control shifted to those who controlled the creation and contraction of money (largely fiat) through the banking function usurping the right of kings as sovereigns to issue money (which should have been restricted to gold) and used the sin of usury as a control mechanism.
"It was through "the manipulation of the quantity and flow of money which enabled them to influence, if not control, governments on one side and industries on the other. To do this it was necessary to conceal, or even to mislead, both governments and people about the nature of money and its methods of operation. In 1909 Walter Rathenau, who controlled the German General Electric Company, said 'three hundred men, all of whom know each other (bankers or their agents), direct the economic destiny of Europe and choose their successors from among themselves.' It must not be felt that these heads of the world's chief central banks were themselves powers in world finance. They were not. Rather, they were the technicians and agents of the dominant investment bankers of their own countries, who had raised them up and were perfectly capable of throwing them down. The substantive financial powers (fiat money) of the world were in the hands of these investment bankers (Rothschild and Baring, etc. also called 'international' or 'merchant bankers' ) who remained largely behind the scenes in their own private unincorporated banks." (Quoted from Carroll Quigley's "Tragedy and Hope" published by MacMillan Publishers. When the deep state realized what MacMillan had done, they ordered them never to reprint this book and to destroy the plates.)
This is the so-called invisible hand of Adam Smith or his masters of the world replacing the royal monarchs. It was thought necessary in order to carry out this control to destroy the entire moral fabric of of Christian society. In this the Rothschilds were preeminent together with their lackey J. P. Morgan until about 1940 when the German Panzer Armies marched into Paris singing songs of hatred against usury. Baron Eduard de Rothschild, the erstwhile ruler of the world, fled to New York City. Plus ca change, plus c’est la meme chose or the more things change the more they stay the same.
Alfred Marshall, J. M, Keynes teacher at Cambridge, struggled with this Aristotelian fallacy in our monetary system and could not solve it. In other words, the gold or paper money cannot create its own liquidity for the interest to be repaid and requires a fraudulent hypothecation to keep it going. And as the monetary aggregates expand, it becomes more and more difficult to control them until they self-destruct from the inherent contradictions. He was the last one and there are no others who tried to tackle it since.
The control mechanism works like this. If we take the Euro central bank reserve of 1%, and the Euro is not backed by gold, and I have a billion in capital which I invest in my bank, then my bank will create a hundred billion of new money as it expands under a 1% reserve requirement. The equation is .01x equals a billion so x equals 100 billion. So from a billion in gold or fiat money is created a 100 billion. My goal is to make 10% profit on this money as it expands like an accordion through the EU fractional reserve system, and while interest rates vary, we will use this figure as a simple proxy. So I make ten billion a year out of my one billion in capital or ten percent of my now 100 billion. Now let’s say my neighbor is as rich as I am and invests a billion dollars in gold to build an automobile plant as Henry Ford, and makes a thirty percent profit, then he makes three hundred million dollars a year to my ten billion. He is just as capable and intelligent as I am but I have the fractional reserve banking system behind me. And I make absolutely nothing but money out of nothing. I have no inventory to keep. My wealth is a bookkeeping entry that everyone believes in. As I make ten billion a year in profit, I grow richer and richer. How can my Henry Ford neighbor keep up with me? I have to win the game.
And before you know it the Dukes of England with their grand estates are nothing compared to me. I came to England in 1798 and my family took over the whole country as I had all the money. As the Dukes lost their lands to me, I decorated my board with their graces (see Anthony Trollope’s “How We Live Now”). Even the Queen had to come to me when she needed money and I lent it to her (Proverbs 22:7). I became the master of the universe and the Queen became a figurehead (see “Coningsby” by Benjamin Disraeli). I declare on television that I am not accepted as an aristocrat despite my purchased title as I am only in this country five generations but what I don’t say is who cares. I am the ruler and that is all that counts.
Now, my friends, this is why gold cannot work. You cannot mine gold fast enough to cover all of the fiat credit that has been created out of nothing. Nor can the paper money keep up so I just have to make more of it under my system. As our Goethe says in Faust, I am fed up with this endless how and when, if there is no money, let us make it then. And so we have.
Now what is the real value of gold. If the United States has 8,133 tons of gold in Fort Knox (unaudited) which comes to 16,267,000 pounds. The pounds translate to 260,270,000 ounces. If I divide that by M-3 money supply, which is to divide the ounces into about 18 trillion dollars, then the gold backing for the dollar is $69,150.00 for each ounce. The quoted ounce today is around $1,683.86. $20.67 in 1920 used to be convertible into one ounce of gold. Now, what does this mean? It means that the fiat money and credit that has no value has supplanted the gold that has intrinsic value until at some future time the jig is up, and reality dawns on the masses as during the German hyperinflation or during the Saigon siege. It is then, and only then, that they will escape from their collective insanity.
I used this literary excursion, taking some liberties with the text, to introduce the discussion of the Euro for reasons which will be soon apparent. The goal of consolidating Europe into one state goes back in modern times to Napoleon Bonaparte’s Continental System whose goal was to create a system of Empire that was self-sufficient and would preserve within it its industrial capacity against the exports of Britain. Here we see a substitution of the Christian consolidating principles of the Holy Roman Empire being replaced by purely materialistic considerations. Napoleon was not the only one to see that you must preserve your own industries if you wish to have power, but Friedrich List wrote about it later in Germany and Alexander Hamilton about this time set up the United States with tariffs so that its industries would not be destroyed. Napoleon used his military genius to foster this system but was confounded in Russia as Germany over hundred years later in the early 1940s. Germany had sought to create a Eurasian Empire from France to Japan using Japan as a partner. Again, Britain in its traditional classical balance of power role, found allies in the United States and Russia to stymie this German project that would have shifted the balance of power against the Anglo-Saxon nations.
The Euro is a new effort led by Germany to achieve a new Continental System. It was Germany that pressed the Euroland nations to extend the Nato Alliance to Poland to protect its industrial investment in eastern Europe in direct violation of the agreements with the drunken Yeltsin. Germany’s foremost goal was to create this 18.292 trillion Euro common market and Euro currency as a direct competitor of the United States where it would finally have a similar market to scale its products. Germany would use the economies of scale of the European Union to destroy the US industry. Then, combined with their currency rigging, they would invade the United States wrecking what was left of their domestic industries that they and Japan had not already destroyed. It is for this reason we do not see Germany giving up on this dream just because a Portugal at 1.4% of Euroland in GDP, or Greece at 1.8% are having problems. (I have to revise my opinion on the longevity of the EU and Euro based on their present conflict with Russia for if it is not settled soon it may lead to the breakdown of the EU and the Euro.) These problems benefit Germany though it cries with crocodile tears of distress over the thought of subsidizing the weaker nations while its exports soar as the Euro falls while within the EU their manufacturing destroys their southern neighbours. These German export profits more than offset some lending to the states as Greece and Portugal that are in IMF tribulation.
If there are any problems here it is between the bank exposure of the main Euro nations in lending to the banks of Portugal and Greece, and they would be concerned with triggering another derivative crisis that happened when Lehman went down. The pulling of the plug at Lehman detonated parts of the 1.5 quadrillion derivatives which represent 17 times the world GDP of 88 trillion. I hold up before this august audience the June 23 article in the Financial Times on quantitative easing of the United States. There is a gigantic fact here that few really understand. It is the 4.434 trillion Federal Reserve Credit (7.1 trillion dollars today). At the time of the fall of Lehman there was only 900 billion of this credit built up from 1914, and in the three months following the Lehman catastrophe the Fed created one trillion in new credit, or a hundred years worth, to save the system, and another trillion over the past few years to keep the United States from falling back into crisis and to try to grow it out of its problems. Would Germany want to pull the plug on Greece or Portugal to face another Lehman as they could not be sure how much effect a Grecian collapse could have on the derivative structure?
It is important to note that about 2.3 trillion dollars of the Federal Reserve credit is held by the banks as excess reserves. The banks that hold these excess reserves lend them back to the Federal Reserve at interest rates above market for two reasons. The first is to allow the banks to generate profits so that they could very gradually write off the bad debts that overwhelmed their balance sheets from the 2008 crash. If they had showed these losses all at once, it might have caused a banking panic. It took eight years to reestablish the balance sheets of the banks on a sound footing. The second reason was by paying higher than market rates this money was noninflationary as it did not expand the money supply by fractionalizing in the banking system by a mechanism explained earlier.
I might add in passing that these 1.5 quadrillion of derivatives have been described by Warren Buffett as a potential financial weapon of mass destruction, and whose description was confirmed by the historical events of October, 2008, have not served as a deterrent for their continued utilization as the derivative aggregates continue to mushroom into larger proportions. The problem of the derivative exposure continues to the present day.
As we said in the introduction, we have to discuss in our talk about the US dollar the declining power of the United States military which will demonstrate that the power of the dollar that is one side of 88% of the international currency trades cannot continue as the most powerful financial control mechanism. Its role was only enforced by its predominant military power which is now inferior to that of Russia and therefore such a dollar hegemony cannot last. As the dollar is intrinsically worthless, its doom is sealed without that global military power. What follows is a discussion of the rise of Russia as the greatest military power in the world.
YOU WANT WAR? RUSSIA IS READY FOR WAR
The S-500 anti-missile missile system is capable of sealing Russian of from ICBM and Cruise missiles. It travels at a speed of 15,480 miles an hour rising as high as 115 miles traveling horizontally over 2,174 miles. It ends MAD or mutually assured destruction as it seals Russian air space and is being superseded by the S-600 that is a massive improvement. We expect the roll out of the S-700 in a year. The Russian hypersonic missiles in a war with NATO would nullify the vast NATO advantage in air power in ten minutes as these missiles destroyed all the NATO airfields paving the way for Russian shock armies to reach the English Channel within two weeks.
In a sense the US is no longer a global power according to Brzezinski if this is true which it is. The ability of the United States to continue to intimidate the world by threats of sanctions ultimately reaching the point that the US blocks an Iran (now blocked) or Russia from using CHIPS and SWIFT interbank clearing ending its ability to trade with the world in an efficient manner is gradually eroding in concert with the US military decline.
It is important to note that this financial tool of sanctions has hanging over it a 1.5 quadrillion of derivatives that nearly brought the world down in 2008 being triggered by the fraudulent subprime and credit default swap mechanisms which required four hundred years of credit creation in the aftermath to save the world system but if Iran were to be placed in this squeeze again by the new sanctions, or Russia for that matter, the al-Houthis have threatened to destroy all the Middle East oil. A cutoff by tactical nuclear missiles by the al-Houthis obtained on the Black Market could destroy in the Middle East over 20% of the world oil supply or twenty million barrels a day, and trigger a detonation of the quadrillion of derivatives that could not be papered over as in 2008 creating a depression worse than the 50% unemployment in 1933 that brought down the Weimar Republic in a national revolution as outlined in the article below. This is not to speak of the anti-ship missiles lining the shores of Iran that can block the Straits of Hormuz's 22 million barrels of oil that travel through it, or 22% of the world oil supply, that can well be another source of the destruction of the 1.5 quadrillion derivative market on top of the 88 trillion world GDP. Ask for our Straits of Hormuz study. for further details.
These exposures that lie beneath the surface of the world financial system are not widely understood. And let's go on with further analysis of the system. It is also important to realize that the credit system of these banks is a closed loop and no money leaks from it except when it is converted to cash, and no money leaks overseas unless it is converted to cash and carried overseas. The latter is not easy to do with western nations watching like hawks these cash transfers via the terrorist laws, or really enemy of the people statutes a la Soviet Russia or East Germany. Essentially, this credit dollar based on deposits at banks floats against the credit yuan or credit yen in a similar manner. The problem with this floating system is that it is not clean. There are dirty floats all over. And instead of the dollar floating by supply and demand against the yen, the Japanese erect a currency tariff against our goods by buying our currency to raise its value so they can dump their goods on us. If currencies truly float, the deficit countries based on excess say dollar credits would fall making it harder for them to buy imports, and it would serve as a self-correcting mechanism. This mechanism is interfered with by these dirty floats. This is discussed in the letters exchanged between myself and the US Secretary of the Treasury at that time Robert Rubin.
Robert Rubin Correspondence – David Lifschultz
When we talk about hot money in the United States of about 11.7 trillion we refer to deposits or Treasury instruments that can be immediately sold and converted to foreign credits. If this hot money were to be converted all at once into foreign credits, the currency would crash as it would constitute a dollar exposure and not a dollar turnover as the 5 trillion that turns over on the foreign exchange market each day. (The following figures have not been updated through to the next paragraph.) The only reserves the United States has against this potential run on the dollar is about 300 billion plus of gold at market and currencies at market. This is far too small to tackle the problem and if the gold were sold on the spot it would crash its price causing it to yield much less an amount than the nominal reserve value.
Now, I just looked up at the Federal Reserve balance sheet to find 24 billion in foreign currencies. So our nation's liquidity is 307.47 billion at today's gold price plus 24 billion in foreign exchange plus IMF SDR quota of 83 billion. The US can draw up to its quota of 83 billion. The demand on the US in hot money is 11.7 trillion. Generally, a sound company likes to operate on a two to one ratio of current assets over current liabilities or 2 to 1. The US current assets over current liabilities comes to a ratio of current assets to liabilities of the US of 379.47 billion over 11.7 trillion or a ratio of about 1 to 31 using 58% of the dollar value for SDRs.
What this means is if there was a run on the dollar whereby Japanese holders of over a trillion dollars in US dollar assets sold all of their dollars on the open market, the US could only buy up of this debt of 379.47 billion dollars. Then, it would have no reserves and go bankrupt. The dollar would keep falling unless the US could persuade some other country to buy up the dollars. Then, the issue is whether the US was just illiquid or insolvent. An illiquid company would have been General Electric in 2008 which could not turn over its commercial paper, and in a default, would have had to declare for bankruptcy protection while it liquidated its other assets. All of its assets then exceeded its liabilities. But in a collapsing market, the other assets of GE other than cash would be falling in value as we saw in the concomitant crash of the 2008 stock market. So if GE had huge amounts of commercial real estate, that real estate could have been suffering a rapid erosion in value, and theoretically all of the Triple A assets of GE could have been collapsing at the same time.
In the case of the United States, if it were to be treated as a company and not a sovereign, then if it had a deficit net worth or net deficit position of around 10 trillion dollars which is around the figure it would mean in a liquidation its creditors could not be paid off. The response to this observation is that the entire wealth of the US would be at the disposal of the US and it could issue an asset tax on all its citizens sufficient to pay off its debts. The national debt in relation to the GDP of the US is about 107 to 108 per cent but this does not reflect the total wealth. Its total wealth after debt is estimated at 93.5 trillion in 2017. If we say that the US government has access if not control of all the wealth of the United States which verges on socialism, then the US could tax 8 trillion of that wealth to pay its foreign debt obligation provided the foreigners would take assets in other forms than dollar credits. However, in the world crisis triggered by the collapse of the dollar, the asset values in the United States could fall as much as 90%. This may sound far fetched, but in 1933 at the heart of the depression with unemployment about 25% real estate prices fell over 90% in New York City as the stock market. If all assets similarly fell 90%, there would be nothing left of the US.
If truth be told, if the creditor nations were to try to remove overnight many trillions of their foreign investment from the United States, it would be regarded as an act of war and the assets frozen. The same action would be taken against Japan of freezing their dollar assets in the United States. The issue of turnover against exposure discussed above can be easily explained by the following comparison. If you have a billion dollars to trade with which is hypothetically all my net worth, and I buy and sell bonds all day to the tune of 300 billion dollars, then it would be foolhardy to say that what is my billion of reserves against my trading prowess of 300 billion dollars a day in bonds. But the exposure I have is a billion, and against that exposure the turnover means nothing except as to whether I lose or gain money each transaction. If I lose two billion dollars, I am broke, and minus one billion dollars as happened to Long Term Capital Management whose derivative position was over a trillion dollars. That demonstrates that when the president of the New York Federal Reserve, William McDonough, told me what is 11.7 trillion (it was less then but I am using the current figure to avoid confusion) in hot money exposure when less than half that amount trades each day, either he did not know himself or he was purposely trying to mislead me as to the significance of this exposure that can be ruinous.
The three trillion exposure to China due to their surpluses is therefore potentially very dangerous for the United States and other deficit countries as if they converted these dollar credits into yuan credits as the Middle Eastern countries could to their currencies, the dollar would collapse on the foreign exchange markets. It is not likely to lead to a short-term catastrophe as China is not prepared to cease exporting to us and others, and nor they would benefit from a world depression as it would deter their march into becoming the dominant world power. In any event, China’s dollar credits would also be frozen if the effort were initiated as those of the Gulf States of Arabia.
Another example of exposure versus turnover is the high frequency turnover in the stock and Forex markets. The average holding or turnover of stock in the United States is twenty seconds. In the Forex markets, which is 70% electronically based on preset algorithmic trading, the roundtrip trades or turnover are completed in under a second on average, and the Big Five players are in and out in under 1/10 of a second. This is also called systemic trading responsible for about half the trades on the New York City stock exchanges and they are tied into the cash settlement manipulations. Ask for our studies on cash settlement if you are interested. This is truly an unproductive use of capital as it produces nothing of value to the society, as well as most of the quadrillion of derivatives. The Tobin transactional tax to discourage this wasteful expenditure of national resources is one way to redirect bank credit. Also, another Glass-Steagall Act should be passed which would include removing these derivative exposures from their balance sheets. In addition, taxes should be raised on short-term profits to 90% to discourage parasitic trading and reduced on long term gain over five years to 5% to encourage productive investment wiping out most hedge fund and investment bank trading especially utilizing cash settlement for manipulation by those that control trillions of investment capital. That was behind the crash of 1987 where we reversed the crash by ordering the major Wall St. players to reverse their position short positions.
As John D. Rockefeller laid out for his Standard Oil combine that is best reflected in one of its former components, EXXON, whose Rockefeller principles they still follow, derivatives for decreasing risk are an authentic business purpose but not to gain speculative profit. As John D. wrote in his “Random Reminiscences”, “Standard Oil is not concerned in speculative interests as the oil business itself is speculative enough, and its successful administration requires a firm hand and a cool head.” And this principle was carried forward in a recent Annual Report of EXXON that stipulated that derivatives are only used to protect investment but not speculation. An example would be farmers selling their futures in corn to Kellogg to pay for seed, and supplies, so that Kellogg can be able to plan on a stable price for their corn flakes but not otherwise for the purpose of gambling using bank credit. Or in the case of EXXON, their selling in the future their refinery production of products to be sure they reaped the money necessary to pay for the building of the refinery while it gives the buyer an assured supply of product at a fixed price they can plan on and guarantees EXXON a sale. In a sense, the Shell future sales of natural gas at their 22 billion dollar Sakhalin project was done to protect their balance sheet accords with this principle.
There is a misconception that the creation of bank credit, or the M-3 money supply, is solely the concern of the banks and should remain within the confines of the free market. But the creation of money out of nothing in our fractionally reserved banking system is essentially a conversion of the wealth of one part of the population to another, and at the very least should be guided by the government as Dr. Hjalmar Horace Greeley Schacht did as Reichbank President in 1933 where no bank credit was allowed to be used for unproductive purposes such as speculation and where he turned around the catastrophic unemployment situation relatively quickly in that 50% of the German unemployment was wiped out in six months and the rest by 1938. John Maynard Keynes in his introduction to the 1938 German edition of his “General Theory of Employment, Interest and Money” declared that Dr. Schacht was the greatest exemplar of this theories. (This approach was replicated after World War Two by the Schacht Reichbank protege, Dr. Wilhelm Vocke, who created the German postwar economic miracle, and my friend, George Champion, who was then head of Chase Manhattan Bank, invited him over in the 1950s to explain this to the American Banking Association).
It was Schacht in 1923 who stopped the German hyperinflation by ceasing to supply credit to the currency speculators who were shorting the Mark, and this created a surge in the Mark ending the hyperinflation. The speculators could no longer go to the central bank for credit to cover their short but had to buy it in on the open market. Similarly, the Chinese authorities blocked the speculators and insulated their economy from the so-called Asian currency contagion of 1997 by buying both the Hang Sang Index and their own currency which the speculators had shorted thereby creating a bloodbath among the speculators–who promptly called in Milton Friedman to call foul as government intervention against manipulation was not regarded by him a part of the functioning of a free market.
Creation of money was always historically under the rule of the sovereign whether it was a monarchy or Congress and not to be held in private hands for their use according to their sole discretion. This does not even cover the lender of last resort role. Even Goldman Sachs had to flee to for cover in the Lehman debacle under the Federal Reserve tent despite almost all of their positions being in the right direction--that is short, as well as General Electric, who could not turn over their commercial paper liabilities created under the so-called genius of management, Jack Welsh, to save interest expenses against the higher interest expenses for the more conservative long-term bond issuances, which is another reason for the right of the government to exercise control over this sector that they have to bail out or face the destruction of their economy. The thought of this Jack Welsh must cause the great Thomas Edison to turn over in his grave.
We can look at total central bank gold reserves of 30,562.5 tons or 977,984,000 ounces, and divide these ounces into the world M-3 estimated to be 60 trillion, and come out $63,000.00 per ounce. This relates to the earlier value of the dollar as $20.00 an ounce in 1920. This expansion validates Aristotle’s contention in Politica 1:3:23 that the interest rate system is contrary to nature in that the gold, paper or credit cannot produce its own children, or the liquidity to cover the interest without either hypothecating the gold or issuing more paper money or credit. What this means in ordinary lingo is that if I own a house, and it is worth ten million dollars, and I sell ten five million first mortgages on it, then I have hypothecated the asset gaining fifty million in credit on a ten million dollar asset. Doesn’t that sound familiar in the various alphabet soup derivatives involved in the last Lehman crisis? So when England in 1900 had a 3% gold base against its Pound credits, it had hypothecated its gold over 33 times with similar Pound issuances. It was an untenable gold interest rate system as the dwindling ratio of gold ounces could not sustain a run on the central bank because of the inverse credit pyramid, and the Pound failed in 1931 with the English going off the gold standard. That spelled the death knell of British power as it iid for the US when it went off the gold standard under Nixon. We have already treated the lunacy of a fiat money representing nothing redeemable by another IOU nothing piece of paper representing nothing.
There is the question of whether gold is in sufficient quantities to allow for expansion of an economy but the liquidity for the economy can be achieved by the gold rising in value if there is a proliferation of other commodities far in excess of the gold base, and in that sense gold should float as a money in the form of a commodity against other commodities. Therefore, in a system under Sharia law gold savings would be rewarded as the production of the system expanded, and it would create a much more valuable gold and a certainly honest currency. The rising value of gold in such a situation would also furnish the additional liquidity for the financing of the growth of the economy. Even a currency separated from gold, whose value constitutes a form of secular transubstantiation, follows the same laws of the interest rate system as it must continuously create the credit or liquidity to pay the interest until it starts to disintegrate in currency crises based on the aggregates becoming unmanageable. This is why historically all currencies so divorced from a metallic metal, and based on the interest rate system, die. The British economist Alfred Marshall was the last one to struggle with this paradox and could not solve it. He could not figure out how to circumvent the fact that the interest rate system cannot create its own liquidity except through diluting the currency, credit or gold until it expires.
Lord Byron addressed the same issues as Johann Wolfgang von Goethe in his “Don Juan”, but spent more time on the issue of the fiat credit and paper system with interest as a control mechanism as the quote below indicates:
“Who hold the balance of the world?
Who reign O’er congress, whether royalist or liberal?
Who rouse the shirtless patriots of Spain?
(that make old Europe’s journals squeak and gibber all).
Who keep the world, both old and new, in pain or pleasure?
Who makes politics run glibber all?
The shade of Bonaparte”s noble daring?
Jew Rothschild and his fellow Christian Baring.
And Percy Shelly regarded the fiat system as more oppressive to the lower classes which it is than the medieval use of gold itself as the only money with silver. While the Wall Streeters aggrandize the wealth to themselves as the .1%, the lower classes can hardly afford to raise children as under the the House of Medici utilizing usury.
Tis to let the Ghost of Gold
Take from Toil a thousand fold
More than e'er its substance could
in the tyrannies of old.
Paper Coin-that forgery
Of the title-deeds which ye
Hold to something of the worth
Of the inheritance of the Earth.
(from the poem "Mask of Anarchy")
Footnote Three:
WHO HOLD THE BALANCE OF THE WORLD?
BY DAVID K. LIFSCHULTZ
DON JUAN BY LORD BYRON
CANTO THE TWELFTH
V.
Who hold the balance of the World? Who reign
O'er congress, whether royalist or liberal?
Who rouse the shirtless patriots of Spain?[615]
(That make old Europe's journals "squeak and gibber"[616] all)
Who keep the World, both old and new, in pain
Or pleasure? Who make politics run glibber all?
The shade of Buonaparte's noble daring?--
Jew Rothschild,[617] and his fellow-Christian, Baring.
The Kiev Coup in the Ukraine is part of an historical effort by the Anglo-Saxon nations to dismantle Russia fearing the geographical sprawl of the Russian Empire. As Russia spread eastward it began to approach India which was the crown jewel of the British Empire and so the British determined that Russian power had to be broken. In the late nineteenth century Great Britain through the Rothschild Milner group began to recruit the United States through their subordinate banker J. P. Morgan to join their geopolitical interests together as they did not believe that they had the power alone to achieve these goals. These connections are considerably treated and connected in Carroll Quigley's "Tragedy And Hope" as the Milner Group opened their records to him. What Quigley was not shown was that the power of the Rothschild Banking Family controlled Europe, the United States and the world through the interconnected banking systems through all the central banks until 1940 and were a substantial but diminished force thereafter.
This is laid out in "Coningsby" by Benjamin Disraeli who wrote this to convince the Rothschilds that he should not be overlooked for advancement understanding all their techniques and rose to be Prime Minister and a Rothschild was a pallbearer at his funeral.
Here is how the master plan works:
"Abstraction, difficult at it is, is the source of practical power. A financier, whose dealings with the world are more abstract than any other practical man, is also more powerful than any other practical man. He can deal in wheat or cotton without needing ever to have seen either: all he needs to know is whether they will go up or down." (Lord Bertrand Russell from "ABCs of Relativity"). The manner n which the market is controlled is discussed in the article below entitled: "Stochastic Control Theory".
We point out in our piece entitled "Goethe, Faust and the Euro" how these hypothecated abstractions have been used to take over the whole world by the Rothschilds over two and fifty hundred years ago through the the financial use of currency hypothecations, or abstractions, as Goethe showed in his "Faust" in the early part of Part Two. Mephistopheles represented Mayer Amshel Rothschild. This is what Lord Russell was telling us.
This same Disraeli humiliated Russia at the Congress of Vienna by stopping them from achieving any gains from their victory over the Turks that elicited this exclamation from Bismarck regarding Disraeli that "Der alte Jude, das ist der Mann" (The Old Jew, he is the man.) Of course, he had the Rothschilds behind him which made him. Disraeli predicts in this 1844 novel "Coningsby" the revolution of 1848 that swept Europe and raised the Rothschilds to such power that Metternich who had exalted them to honor and made them Barons had to flee Vienna as a vagabond as they cracked their 1848 whip over him.
Excerpted from "Coningsby" by Benjamin Disraeli:
'You never observe a great intellectual movement in Europe in which the Jews do not greatly participate. The first Jesuits were Jews; that mysterious Russian Diplomacy which so alarms Western Europe is organized and principally carried on by Jews; that mighty revolution which is at this moment preparing in Germany, and which will be, in fact, a second and greater Reformation, and of which so little is as yet known in England, is entirely developing under the auspices of Jews, who almost monopolise the professorial chairs of Germany. Neander, the founder of Spiritual Christianity, and who is Regius Professor of Divinity in the University of Berlin, is a Jew. Benary, equally famous, and in the same University, is a Jew. Wehl, the Arabic Professor of Heidelberg, is a Jew. Years ago, when I was In Palestine, I met a German student who was accumulating materials for the History of Christianity, and studying the genius of the place; a modest and learned man. It was Wehl; then unknown, since become the first Arabic scholar of the day, and the author of the life of Mahomet. But for the German professors of this race, their name is Legion. I think there are more than ten at Berlin alone.
'I told you just now that I was going up to town tomorrow, because I always made it a rule to interpose when affairs of State were on the carpet. Otherwise, I never interfere. I hear of peace and war in newspapers, but I am never alarmed, except when I am informed that the Sovereigns want treasure; then I know that monarchs are serious. 'A few years back we were applied, to by Russia. Now, there has been no friendship between the Court of St. Petersburg and my family. It has Dutch connections, which have generally supplied it; and our representations in favour of the Polish Hebrews, a numerous race, but the most suffering and degraded of all the tribes, have not been very agreeable to the Czar. However, circumstances drew to an approximation between the Romanoffs and the Sidonias (pseudonym for Rothschild in the novel). I resolved to go myself to St. Petersburg. I had, on my arrival, an interview with the Russian Minister of Finance, Count Cancrin; I beheld the son of a Lithuanian Jew. The loan was connected with the affairs of Spain; I resolved on repairing to Spain from Russia. I travelled without intermission. I had an audience immediately on my arrival with the Spanish Minister, Senor Mendizabel; I beheld one like myself, the son of a Nuevo Christiano, a Jew of Arragon. In consequence of what transpired at Madrid, I went straight to Paris to consult the President of the French Council; I beheld the son of a French Jew, a hero, an imperial marshal, and very properly so, for who should be military heroes if not those who worship the Lord of Hosts?' 'And is Soult a Hebrew?' 'Yes, and others of the French marshals, and the most famous; Massena, for example; his real name was Manasseh: but to my anecdote. The consequence of our consultations was, that some Northern power should be applied to in a friendly and mediative capacity. We fixed on Prussia; and the President of the Council made an application to the Prussian Minister, who attended a few days after our conference. Count Arnim entered the cabinet, and I beheld a Prussian Jew. So you see, my dear Coningsby, that the world is governed by very different personages from what is imagined by those who are not behind the scenes.'
This is how it was before World War One where each nation's cabinet had a proponent for war such as a fanatical Rothschild Slavophile in Russia, or a Rothschild Germanophile in Germany, or Rothschild flunky in England or France. The conductor was Baron Eduard de Rothshchild and the others were the players in his orchestra following the directions of the conductor orchestrating each side in the conflict. Thus, through this orchestra the Baron created World War One. Later we quote from John Buchan, First Baron Tweedsmuir, that gained his knowledge as Secretary to Lord Milner himself the Rothschild agent. It was the Baron Eduard who through British Intelligence ordered the slaying of the Tsar and his family which orders were followed by Lenin as the British King was merely his puppet as all power transferred over a hundred years before to the merchant bankers that were the powers behind the scenes.
The representatives from the Rothschild bank and the representatives of their subordinate banker J. P. Morgan had meetings with President Woodrow Wilson in 1915 to lend money to the British and French to pay for the munitions that these two countries were purchasing. These war sales from what were later called the merchants of death had a very stimulative effect on the US economy also cited as a justification of the loans. These large loans were approved as the sale of these munitions were considered very important to our exports but were opposed by Secretary of State William Jennings Bryan who said these loans violated our proclamation of neutrality and would drag us into the war but was overruled. Bryan resigned and he was right. The US sold Britain and France 7 billion dollars in goods for the war which is 700 billion dollars in today's dollar. The cost of World War One was a hundred billion dollars or a ten trillion dollars in today's money. It is not logical to believe that we spent ten trillion dollars to save our 700 billion in loans. That would not be good business and the business of America is business. Or so we might think. (Source for this paragraph "The Devil Theory Of War" by Charles A. Beard, though this information is no theory. He was the most prominent historian in America at the time.)
The actual goals of World War One (and also World War Two) of Britain were to destroy two major powers, that was their ally Russia, and their enemy Germany. Germany had antagonized Britain by starting the building of a major fleet which was intolerable to the mistress of the seas that the dismissed Bismarck had wisely had no interest in. The Kaiser was interested in Alfred Thayer Mahan which demonstrates how a nation can be destroyed over a theory. So Germany had to be destroyed. What better way was there to do that as in World War Two but to have Germany and Russia fight it out destroying themselves. This was the goal of the Secretary of State for Foreign Affairs of Britain Edward Grey for World War One. This also was the position of Britain in World War Two as both Germany and Russia had been rebuilt by Hitler and Stalin so that they had to do it all over again. The fact that Britain sent supplies to Russia, and later the United States did the same in World War Two largely through Alaskan ports did not mean that they loved Russia as the Entente did this in World War One. They were merely using Russia as cannon fodder and did not want Germany to win but that both should bleed themselves to death leaving the division of Europe and the world to the those that remained of the Entente or actually the Anglo-Saxons.
Britain had been an an early sponsor of Hitler through their intelligence agencies financing the National Socialist Party in the 1920s as Hitler spoke favorably of England in his "Mein Kampf" and lent huge sums of money in 1933 to Hitler (Schacht-Norman transactions) to build Germany up for the purpose of Germany attacking Russia. Here again they could kill two birds with one stone. George Washington in his Farewell address warned against our getting involved in these foreign entanglements which is the next group of articles after this one.
The underlying philosophy is what they call geopolitics largely of Halford Mackinder. Though Great Britain ruled the waves, they as the United States have a hard time projecting power on land in the Eurasian land mass based on the large expanse of ocean between us and if Britain could not clip the wings of Russia before they reached India they would find themselves in an impossible position to defend India by the sea against the Russian land power. Russia had to be destroyed from the east before they reached India. There is a great deal to this opinion and this was capably used by Baron Eduard de Rothschild as a cover for his desire to destroy and root out the Tsar. The Baron really did not care about any European powers but their own personal interests. The Tsar was their enemy and they would use any contrivance to destroy him.
It was Mackinder's analysis that whoever controlled the Eurasian land mass would control the world. This was what World War One was really all about on the surface and the Milner Rothschild Group had set up the United States to be their ally in making sure the Eurasian land mass was not taken over by Russia or Germany if the latter conquered Europe and then went for Eurasia as Germany in World War Two tried to do after defeating France. The goal of Germany was to link up with Japan controlling from the English Channel to the Pacific. Of course, there were lots of lying propaganda to cover up the true motives of the Entente and allies of World War Two that would be hard to sell to the public based on the truth.
This was realized in this exchange between Goering and Hitler:
Goring: They (Britain and America) entered the war so that we would not reach the east (Japan in China), but not so the East (Russia) would reach the Atlantic.
Hitler: That's quite clear.
Source: "Hitler And His Generals", the stenographic record of military conferences, page 649.
And by Stalin:
We (Milovan Djilas and Stalin) stopped on our way to the dining room to view a map on the wall of the world where the Russia was colored in red. Stalin waved his hand over Russia and said: "They (the US and Britain) will never accept the idea of such a great space should be red, never, never!"
"Conversations with Stalin" by Milovan Djilas, page 74.
These same geopolitical ideas underlie the present struggle with Russia. The United States fought World War Two to prevent Germany and Japan uniting the Eurasian land mass between them as that would have enabled them to control the world following Brzezinski but really lost that objective when Russia and China allied together in 1949 controlling from East Germany to the Pacific via China. The US thus essentially lost World War Two and the treasure we expended was a total waste. The US made a quick reverse turning Japan and Germany into allies against Russia and China pushing back against this Russian-Chinese alliance. They called this the Cold War. The US recoiled as it is now from the present 2014 Russian and Chinese alliance after having separated them under Nixon. And now they are back together. That is what the present conflict is all about.
The US had a breakthrough in 1991 when Russia collapsed and hastened to separate the Ukraine and Baltic States from Russia and large swathes of Central Asia. And for the first time Russia is showing great resistance to any further effort to dismantle them having rebuilt their military into the strongest in the world outlined in detail in the in articles below this one. Its impenetrable S-500 and S-600 defensive missile systems were such a dramatic breakthrough that the US can no longer even be regarded as a global power their present power being held together only by their control of the world payment mechanism (CHIPS and SWIFT). The US in a kind of hysteria of sanction manias connected with its massive decline in industrial power comparing nine million motor vehicle production per year in the US to 29 in China demonstrates the point that the US has become a secondary power. Next we discuss how this Anglo-Saxon aggression against Russia worked out historically starting with Russia in World War One.
This is what the allies did to Russia in 1918. The allies France, Britain and the United States had two goals in World War One which was to destroy Russia and Germany. Russia was hoodwinked into an alliance with France after Kaiser Wilhelm stupidly abrogated the Reinsurance Treaty with Russia precipitating two world wars where the second was really a continuation of the first. England hated Russia as it feared their border was coming too close to their India and the country had to be broken up. This went against what Lord Palmerston called British interests as he explained that "Britain had no permanent friends or enemies but only permanent interests". It was not only Germany who acted to destroy Russia by Parvus-Lenin, see video below, but the intelligence agencies of Britain, France and the US (there was no OSS then so this was politically engineered) who acted in Russia in support of the Bolsheviks to bring Russia down low under the approach described above.
British intelligence had great influence on Lenin-Trotsky pushing him to liquidate the Tsar and his family and most of the Romanovs except the Romanov whose book we quote from below. The British royal family was interested in the jewels of the mother-in-law of Grand Duke Alexander that the British royals wear to this day. Thus, the British intelligence agencies ordered Lenin to protect Grand Duke Alexander, his mother-in-law and other family members with him in the Crimea who were personally protected by Lenin under British orders. In other words, Lenin reported to both German intelligence and British intelligence in these days when his position was so precarious and he was juggling between the two for survival. And Lenin was ordered by England to kill the Tsar, his wife, his children and the other Romanovs so that there could be no rallying around the deposed Tsar or Romanovs as desired by the Baron.
Here are the observations of General Max Hoffmann, who was a senior commander of the German Army on the eastern front and by far their most brilliant, about how England treated their ally Russia:
"In March, 1917, at that moment of great difficulty, an event took place affecting the history of the world and which gave Germany once again the possibility of a major victory--this was the beginning of the Russian Revolution. The Tsar had realized that Russia was unable any longer to support the burden of the War, and by continuing it he would expose the state to severe internal convulsions. He was therefore considering the question of a separate peace. In this, however, he calculated without taking consideration the will of England. The British Ambassador in Petrograd, Sir George Buchanan had received orders to prevent a Russian separate peace at any price, and he acted in accordance with his instructions when he joined Kerensky and Gutschkov in deposing the Tsar."
General Hoffmann thought that he could negotiate a peace with Kerensky, and was tricked by Kerensky's peace overtures, so fighting went on n 2017. Now, we come to a most interesting observation by General Hoffman:
'I cannot say if the German General Headquarters was cognizant of this measure (of later moving Lenin and entourage from Zurich to Russia which it was as Ludendorff later admitted.) The Commander in Chief in the East knew nothing about it. We only heard of it months later, when foreign newspapers began to reproach Germany about it and asserted that we were the fathers of the Russian Revolution. This assertion, which is as false, as so much of the enemy propaganda, cannot be denied emphatically enough. As I have said the Russian Revolution was brought about by England."
This was how France and England repaid the Tsar for losing 500,000 soldiers in an attack at the inception of the war to relieve the pressure on Paris who was reeling under the rapidly advancing German Army under the Alfred Graf von Schlieffen plan when the Russians were not ready. The Russians entered the war with insufficient military industrial power to resupply their troops and an attack on that basis alone was demented but the Tsar was a fool and idiot.
In fact he did not have the industrial capacity to enter the war.
Here we take an aside to look in for a moment to the end of the Tsar's story of leadership quoting from the Lubyanka cellmate of Leopold Trepper who was the conductor of the Red Orchestra in Europe which was the most significant espionage group in World War Two excerpted from his book the "Great Game" on page 381-383:
"I stared in astonishment (Leopold talking). My cellmate was Vitaly Szulgin of the Black One Hundred. Szulgin lay down on the bed next to mine and for many long hours told me his life story.
At the beginning of the war, the Nazis invited him to Berlin and proposed he take part in the anti-Bolshevik crusade. But Szulgin--a reactionary with fascist sympathies and an anti-communist to the tips of his toes--had refused. He felt these Germans cared very little about whether Russia was red or white, that their only ambition was the conquest of vast territories. Szulgin spent the whole war living anonymously in a small village of Yugoslavia. After the defeat of Hitler's hordes, he decided to return to the Soviet Union. The victory had gratified his "great Russia" chauvinism. He was attached to his native land, and wanted to end his life there, even in prison.
He presented himself at the Soviet military mission in Belgrade. The young NKVD officer on duty stared in amazement at this man who is volunteering to become a prisoner. He consulted a list of wanted persons. Szulgin was not on it. "You may go; we do not know you," he said.
But Szulgin did not give up, ; he came back the next day. This time a colonel was sitting behind the desk. (The NKVD as the KGB used military titles for their organization.) As soon as Szulgin gave his name, the colonel got up, rushed at him, and shouted losing all control,
"You mean you are Szulgin, the organizer of the pogroms in Russia."
"At last someone who recognizes me," the former head of the Black One Hundred said, without losing his composure.
They put me on a plane to Moscow, and he who had dreamed all his life of being a pilot had his first airplane ride, from Belgrade to Lubyanka.
Then came his hearing. "What's the use wasting your time with me?" "Put me in a private cell, and I will write the story of my life and my crimes against the Soviet Union."
He filled several hundred pages. Every time he went for interrogation, the room was full of officers who came to listen to the "lecture". Szulgin made an original contribution to the pre-October history of Russia. At the head of the Black One Hundred, he had been part of the delegation that went to ask the Czar to abdicate. Nicholas II was deep in a game of chess and did not want to be distracted. When he learned the object of their visit, the Czar did not try to conceal his joy. "At last, it is over!"
"What did you expect? Szulgin added. "He was the biggest idiot in the whole dynasty."
Szulgin's political ideas were really extraordinary. He frequently held forth on his favorite subject, the greatness of Russia: "Under the leadership of Stalin, our country has become a world empire. It has achieved the goal that generations of Russian have aspired. Communism will fall away as a wart, but the empire will remain. It is too bad that Stalin is not a real Czar; he has all the qualification. Ah, if Stalin were not a Bolshevik. Your communists do not understand the Russian soul: the people have a quasi-religious need to be guided by a father they can trust."
Szulgin rested all his hopes on the greatness of Stalin's Empire.
"I do not want to be released", he said. "because everywhere I go would be received as you have received me. I hope they will give me a cell where I can continue to write books on the history of our country."
Szulgin, the fanatical anti-semite, the promoter of pogroms, was released well before the communist militants. He was assigned a dasha in a village, where even today, he continues his work, the tireless eulogist of the Stalin regime."
The reader may not know that the writer of the above was Leopold Trepper who was the conductor of the Red Orchestra that was the most effective spy ring against the Germans in western Europe. The network was partially broken and Trepper was captured. Rather than face torture, he gave away the members of his organization and later "escaped". Stalin arrested him for those betrayals and so this communist militant was not released until after Stalin's death. He did not deserve an early release.
The use of torture is a pagan method contrary to the traditions of the Bible but it does work. In Catholic Spain during the Grand Inquisition 17 conspirators would each be tortured in separate cells with a scribe taking notes of what each said. And then they would be compared. If they were the same, then it was accepted as true. Since Christianity as a religion has been destroyed in the west, torture has returned in most western countries in areas of national security. This is not surprising then as the pagan killing of women and children non-combatants has also returned on a mass scale in World War Two. They now have reached the point of having promoted ten billion abortion-murders if we include the after morning pill and have exceeded in wickedness any pagan nation in history by having sanctified sodomitic marriage. The sodomitic couple after marriage at West Point at a "Church" walk under the swords as they leave the service. The western nations are to all intents and purposes pagan and totally degenerate again.
The key here was again the struggle against Stalin's nationalism against internationalism that arose in Russia after Stalin's death and led later in 1991 to the temporary destruction of Russian power as under the internationalists Trotsky and Lenin.
Milovan Djilas: Without industrialism the Soviet Union could not have preserved itself and waged war. (In other words, socialism in one country or national socialism.)
Stalin: It was precisely over this that we quarreled with Trotsky and Bukharin.
Page 75 "Conversations with Stalin.
And on page 154:
Milovan Djilas: Toward the end of the dinner Stalin asked why there were so few Yugoslavian Jews in their party to which I answered there were not many Jews in Yugoslavia and most were members of the Middle Class. "The only prominent Jew is Pijade and he regards himself as being more of a Serb than a Jew."
Stalin: "Pijade, short, with glasses? Yes, I remember, he visited me. And what is his position?
Milovan Djilas: He is a member of the Central Committee, a veteran Communist, the translator of "Das Kapital", I explained.
Stalin: "In our Central Committee there are no Jews!" he broke in, and began to laugh. "You are a anti-Semite, you too, Djilas, are an anti-Semite!"
Let's return to the Tsar after this diversion:
The Tsar thought he had to keep his word to democratic France who despised him as Count Lev N. Tolstoy pointed out when the Tsar made his alliance with France in 1894 and later was stabbed him in the back by Britain and France during the Bolshevik Revolution. The clever Okhrana agent Stalin learned these lessons well though lost on traitors to Russia as Gorbachev and Yeltsin as later proved when the west broke all their agreements they made to them.
It is noteworthy that Stalin brought forward based on the Christian teachings learned at Seminary the teaching of Saint Augustine on marriage restricting the procreative act to procreation. This means that outside of marriage it was condemned and where in marriage there was no procreative intent such as during pregnancy and nursing or after menopause. All children in Russia under Stalin were so taught. This would also mean that all views contrary to this were forbidden and required the Russian people to have no contact with foreigners who could corrupt them. Thus, a cordon sanitaire was created around Russia or what Churchill called an Iron Curtain against the influence of Harrow sodomites as Churchill. This is what the Bible meant by the land of Israel being separate from the nations when holy (Exodus 19:5&6). Stalin did not want the west corrupting Russians.
The Rothschild (Baron Eduard) effort to destroy the Tsar began in earnest even before World War One in 1904 when they financed the Japanese War against Russia in 1904 and 1905.
What was perhaps Jacob Schiff's (agent of Baron Eduard de Rothschild) most famous financial action was during the Russo-Japanese War, in 1904 and 1905. Schiff met Takahashi Korekiyo, deputy governor of the Bank of Japan, in Paris (at the office of Baron Eduard de Rothschild) in April 1904. He subsequently extended loans to the Empire of Japan in the amount of $200 million (equivalent to $20 billion in 2016), through Kuhn, Loeb & Co. These loans were the first major flotation of Japanese bonds on Wall Street, and provided approximately half the funds needed for Japan's war effort. (The Baron created Churchill and Roosevelt for the next World War this time to remove Hitler from the scene. Churchill had fallen on hard times after crashing his fortune in 1929 and by 1935 it appeared he might not be able to afford any more his silk underwear and pajamas from Turnbull and Asser or his Chartwell estate. And so he was successfully bribed to oppose Hitler though he never particularly liked Jews. Jacob Schiff bought the New York race for governor for Roosevelt in the Lehman-Roosevelt race bribing Boss Flynn of the Bronx to deliver the votes. In America the deceased will decide close elections. Roosevelt was a new stooge set up for the Baron by Jacob Schiff.
When Japanese war did not destroy Russia the Baron started World War One and we have edited this excerpt from the book "39 Steps" by John Buchan substituting Rothschild instead of the word Jew:
John Buchan
Was Buchan trying to tell the reader in "39 Steps" something in the last line of his dedication, where he explicitly refers to secret truths stranger than the fiction featured in his adventure stories?
In the first chapter, the protagonist, Hannay, is told by a mysterious stranger of an “international conspiracy” aimed at turning the armies of Russia and Germany against one another. The conflict will be precipitated, explains the stranger, by the assassination of the Greek prime minister, Karolides. (Actually, the Archduke) The stranger, who later turns out to be Franklin Scudder, a British agent, goes on to tell Hannay that “the Rothschilds” — who “hates Russia worse than hell” — is behind the plot:
“I am giving you what he told me as well as I could make it out. Away behind all the governments and the armies there was a big subterranean movement going on, engineered by very dangerous people. He had come on it by accident; it fascinated him; he went further; and then got caught. I gathered that most of the people in it were the sort of educated anarchists (Bolsheviks) that make revolutions, but that beside them there were financiers who were playing for money.
“A clever man can make big profits on a falling market, and it suited the book of both classes to set Europe by the ears. He told me some queer things that explained a lot that had puzzled me — things that happened in the Balkan War, how one state suddenly came out on top, why alliances were made and broken, why certain men disappeared, and where the sinews of war came from. The aim of the whole conspiracy was to get Russia and Germany at loggerheads. When I asked why, he said that the anarchist lot thought it would give them their chance.
“Everything would be in the melting-pot, and they looked to see a new world emerge. The capitalists would rake in the shekels, and make fortunes by buying up wreckage (Rothschild hyperinflation in Germany after the war where they made a trillion dollars). Capital, he said, had no conscience and no fatherland; besides, the Rothschilds were behind it, and the Rothschilds hated Russia worse than hell. ‘Do you wonder?’ he cried. ‘For three hundred years they have been persecuted, and this is the return match for the pogroms. The Rothschilds are everywhere, but you have to go far down the back stairs to find him.
“‘Take any big Teutonic business concern. If you have dealings with it the first man you meet is Prince von Und zu Something, an elegant young man who talks Eton-and-Harrow English. But he cuts no ice. If your business is big, you get behind him and find a prognathous Westphalian with a retreating brow and the manners of a hog. He is the German business man that gives your English papers the shakes. But if you’re on the biggest kind of job and are bound to get to the real boss, ten to one you are brought up against a little, white-faced Rothschild in a bath-chair, with an eye like a rattlesnake. Yes, sir, he is the man who is ruling the world just now, and he has his knife in the empire of the Tzar because his aunt was outraged and his father flogged in some one-horse location on the Volga.”
Here we retrace our steps a bit:
The Russian offensive caused General Helmut Johannes Graf Ludwig von Moltke to lose his nerve just as it appeared Germany would win by transferring large numbers of troops from the western front to the eastern front as he thought he was about to be routed there. It was a colossal mistake.
This weakened the German drive violating the principle of Napoleon of concentration of force. Joffre thus was able to stop the Germans at the Marne and von Moltke said to the Kaiser "we have lost the war" and then suffered a nervous breakdown. The German offensive in the west thus failed. It was not Marshal Joseph Jaques Cesaire Joffre who won the Battle of the Marne but Russia who drew German troops to Russia which was used and hated as cannon fodder as they were in World War Two by the allies as we shall discuss shortly as can be heard on the Operation Gladio tape which has James Jesus Angleton of the OSS-CIA working at the end of World War Two to set up Russia as the enemy again before the war was even over.
The killing of innocent civilians to achieve a strategic objective on not letting the communists take over Italy was considered justified as in the 9-11 false flag operation to initiate a war against Islam proven in this Gladio tape. Here in Italy innocent civilians were killed blaming the communists in order to make sure that they did not win the Italian elections. This was unconscionable as 9-11. Even the kidnapping of Aldo Moro was set up by western intelligence agents whose special forces infiltrated the Red Brigade to achieve the sophistication necessary to effect the kidnapping of a head of state. The intelligence agencies were able to use the Red Brigade as a cover to conceal their tracks. What happened here was that Moro wanted to create a fusion government in Italy with the communists which was the vehicle that the communists in Eastern Europe used to take over their governments after World War Two so the CIA was completely right to see this as a strategic threat.
In 1978 Pieczenik was a special envoy for President Jimmy Carter to Italy to assist in the search for Italy's Prime Minister Aldo Moro. Pieczenik, as an international crisis manager and hostage negotiator in the State Department, was sent to Italy on 16 March 1978, the day that Moro was kidnapped, and was involved in the negotiations for the release of Moro. He was part of a "crisis committee" headed by Francesco Cossiga, the interior minister. Moro was held for 54 days, Pieczenik said the committee was jolted into action by the fear that Moro would reveal state secrets in an attempt to free himself. Moro's widow, Eleonora, later said Henry Kissinger had warned her husband against his strategy of Historic Compromise (Italian: Compromesso storico). "You will pay dearly for it," he is alleged to have said. A false statement, attributed to the Red Brigades, was leaked saying that Moro was dead. Pieczenick revealed that this had a dual purpose; to prepare the Italian public for the worst, and to let the Red Brigades know that the state would not negotiate for Moro, and considered him already dead. (This was interpreted by the commandos as an instruction to liquidate Moro.) Moro was shot and placed in the back of a car in central Rome, midway between the headquarters of the Communist Party and the Christian Democrats. In a documentary Cossiga admitted the committee had taken the decision to release the false statement. Pieczenik said that Moro had been "sacrificed" for the "stability" of Italy. Moro's eventual assassination has been attributed to the CIA as part of Operation Gladio by journalist Philip Willan.
We cite this as a comparison to 9-11. What are the other credentials for Dr. Pieczenik:
Pieczenik was Deputy Assistant Secretary of State under Henry Kissinger, Cyrus Vance and James Baker. His expertise includes foreign policy, international crisis management and psychological warfare. He served the presidential administrations of Gerald Ford, Jimmy Carter, Ronald Reagan and George H. W. Bush in the capacity of deputy assistant secretary. (But this may mean something to the public but the power in Washington at the CIA is not with the Director but deep within the organization. It is an axiom here that if you know the name of the CIA operative he is not important.)
It is also quite interesting that the very, very high CIA Steve Pieczenik is going on the Alex Jones Infowars identifying what really happened on 9-11 which demonstrates a division at the top with Mueller having covered up 9-11 at the FBI being appointed just before it for that reason and Pieczenik being forty stories higher than Mueller in the hierarchy telling who all the US players were at 9-11 being given the information by a US General. See the interview on 9-11-2018 by Owen Shroyer of Dr. PIeczenik on Infowars on the internet below. There were no members of Islam on those planes and the boarding tapes were retroactively doctored to show Arabs by the CIA who were not involved in 9-11 but were brought in to cover it up. Nor was the ISIS involved at all which we ourselves created to stymie Iran in Iraq as it pitted our Sunni (ISIS) against al Maliki and the Shia as a way to balance power in the Near East. Our sources are above the President, Congress and Supreme Court who took over the fiasco from Cheney who botched up the whole operation. It was they who decided to blame Osama as an excuse to invade Afghanistan to restart the heroin plantations shut down by the noble Taliban. It was a historic double-cross comparable in infamy to the worst actions of Perfidious Albion (Note two heroin wars against China in the 19th century). This would then finance the external operations of the US intelligence agencies from the heroin profits in the trillion dollar neighborhood and line not just a few of their pockets through control of 93% of the world heroin distribution.
Afghanistan and the CIA Heroin Ratline
The fact that Building Number Seven was not hit by a plane but went down anyway was almost a superhuman problem to get over. Only an idiot could have believed it after that. Here is the Operation Gladio tape and the Steve Pieczenik tape:
Operation Gladio - Full 1992 documentary BBC
9/11/2018 Dr. Steve Pieczenik joins Owen Shroyer on War Room
The Boeing Uninterruptible Autopilot is a system designed to take control of a commercial aircraft away from the pilot or flight crew. If implemented, the system would allow the craft to automatically guide itself to a landing at a designated airstrip. The "uninterruptible" autopilot would be activated remotely via radio or satellite links by government agencies.
We have to correct some of Steve's errors as his source is a general and not a primary source as ours. We can say that Steve Pieczenik is wrong saying the ISI was involved and the Saudis were not involved at all. Nor was the CIA involved though it was called upon to cover it up. The general that advised Steve was mostly correct otherwise.
The reader may wonder why the fake 9-11 Commission was believed as the Warren Commission. This so-called Supreme Court Chief Justice Earl Warren was connected to organized crime in California as Governor and was so arrogant that at the Toots Shore Restaurant he raised his glass to Albert Anastasia to Albert's glass in the motion of a toast. He is responsible for destroying the entire American school system. The Mossad training course for agents used to require a replication of Lee Harvey Oswald shooting Kennedy. The entire scene is set up as in Dallas on that fateful day and no IDF sharpshooter can replicate the shots. No. Not by a long shot. When they are so shocked they ask the instructor why? Because Oswald never shot him; he was set up but the stupid American public will believe anything. The truth is if you can succeed in morally degenerating the whole population as our Trotkyites have done you can make them believe anything as Harry Houdini claimed in his technique of misdirection in magic tricks.
Let's look at World War One from the Russian side quoting from that interesting account by Alexander, Grand Duke of Russia, former Field Inspector General of the Russian Imperial Air Service in World War One, in his book "Once a Grand Duke" that we will quote more than once and here we quote a conversation on pages 265 and 266 with Baron Anton Egorovich Zaltsa who was a Russian general of German origin that was one of the commanders of the western front:
"A long talk with Saltza and his staff demonstrated to me the existence of a situation which I thought abnormal and which was to continue throughout the twenty-six months of Russia's actual fighting. I learned that the army of the Russian Empire was to be used by Great Britain and France as their mammoth shock-absorber and that our commanders were to be guided in their strategy by the order to save Paris "at no matter what cost". In terms of human lives it meant we should sacrifice some five hundred thousand officers and soldiers in our ill-timed offensive on the eastern front for the sake of "easing up the pressure against Paris," a far-away alien city whose name had no sentimental sound for our men and whose ultimate fate meant nothing for the future of our country.
While our fourth army fought the onrush of the Austrians, our first and second armies invaded East Prussia, heading with their eyes open straight for the trap prepared by Hindenburg. The bulk of the second army consisted of the Imperial Guards Corps, the best trained troops of Russia and chief mainstay of the Imperial regime for the past fifty years, now thrown into the inevitable slaughter for the Great Glory of Paris.
We cursed and raved. All diplomats should have been put in the ranks if they wanted to participate in this war. But orders were orders. Our soldiers died without a murmur. The second army ceased to exist, its commander, General Samsonoff, using his last bullet to avoid the humiliation of being taken prisoner. Paris was saved by a hecatomb of Russians killed on the Masurian marshes in East Prussia. Humanity at large preferred to remember that Battle as "Joffre's victory of the Marne".
Our next quote comes from page 295 which is quite germane to our present so-called Ukraine problem which we as the Germans initiated to weaken Russia in the 2014 Kiev Coup which would be like the United Nations voting to give back the territories we took from Mexico except the Russians have more right to the Ukraine than we have to California:
"Fight for the immediate Ukrainization of the Ukraine"
This last one--a masterstroke of German strategy--needs to be explained. The word "Ukraine" referred to the immense Southwestern district of Russia, bordered by Austria in the west, the Central provinces in the north and the Don district in the east, with Kieff (Kiev) considered as its capital, and Odessa on the Black Sea its principal port exporting wheat, grain, sugar, etc. Four centuries before it served as a battleground for the continuous skirmishes between the Poles and the bands of free Cossacks who called themselves "Ukrainians". Czar Alexei Michailovich took it under his scepter in 1649, and in the course of years it became stupendously prosperous, Catherine the Great being the first to see its agricultural and industrial future. Ninety-nine per cent of the population spoke, read and wrote Russian, but a small coterie of fanatics insisted on equal rights for the Ukrainian language. They were ridiculed in numerous cartoons; in fact, the Kentucky mountaineers demanding the usage of slang by Louisville-school teachers would have been much less ridiculous.
Kaiser Wilhelm frequently teased his Russian cousins on this subject, but what had been a joke before the revolution suddenly acquired the dimensions of a nightmare in March, 1917.
The leaders of the Ukrainian Separatist Movement were quickly summoned to German Headquarters and promised the status of a free state, should they succeed in paralyzing the rear of the Russian Armies.
Millions of leaflets flooded Kieff (Kiev) and the adjoining towns. "Russians must get out of the Ukraine." demanded their authors. "If they want to continue this war, let them fight on their own soil."
A delegation of irate nationalists left for Saint Petersburg and demanded a new Government permission to organize a Ukrainian Army consisting of then soldiers serving in different corps of the Russian Army. Even the most radical members of the Provisional Government understood the whole thing smacked of treason and threatened to explode the army from within but the Bolshevik leaders of the soviet rallied to a man to this insane project (Editor: Guided by the Rothschilds through German General Ludendorff. This incredibly follows the BND-CIA coup in Kiev in 2014.) The Ukrainian demand was satisfied. Almost, simultaneously the German General Staff started taking divisions off the eastern front and sending them to France. The Russian steam-roller had been shot to pieces.
So does history repeat itself in the Ukraine again. We have pointed out elsewhere the US should never have become involved in World Wars One and Two and what the above history does prove is that the instincts of Donald Trump have been right in his desire for detente with Russia which has been the source of his friction with the intelligence agencies.
Let us see how familiar this corruption of pre-World War One Russia is to our time just prior to World War One quoting again from Archduke Alexander:
"The remaining hundred days of peace in Russia before World War One were filled with gambling, sensational crimes, and a rather significant epidemic of suicides (opioid epidemic). That year they danced the tango. The languorous tempo of its exotic music sounded from one end of Russia to the other. The gypsies cried, the glasses clinked, and the Rumanian violinists, clad in red, hypnotized inebriated men and women into a daring attempt to explore the depths of vice. Hysteria reigned supreme.........and wild orgies.
Every conceivable variety of vice was paraded before the juries in the sensational murder trials of the time and broadcast by the newspapers for the edification of our youth (Monica Lewisky-Clinton unnatural vice hearings before Congress). ...... St. Petersburg refused to be "outsinned" by Moscow in orgies" (New York City and Washington compete as to which can be more evil).
This was stimulated by the hysterical frenzies in money market on the manipulated financial markets directed by Baron Eduard in his effort to bring down the Tsar (1929 Roaring Twenties or America's widespread depravity today exemplified by sodomitic marriage and the sponsorship of ten billion abortions worldwide when you add to the holocaust the after morning pill).
"They practiced a system registered in Russia as "American" but referred to by another name in the financial circles of the United States. They performed no miracles. They disclosed no exceptional genius. The accumulation of their wealth was made by the extreme leniency of the Russian banking laws (2008 and 1987 America), which permitted the directors of saving institutions to exercise unrestricted control over the choice of securities purchased with the funds of the depositors. (The leverage was at 15% as assets were pyramided. Markets became a speculative mania.) Mergers followed each other in rapid succession. At the end of a short period, the virtual guardianship over the bulk of Russian capital passed into the hands of three individuals. The consequences can well be imagined (Bain Capital, Goldman Sachs, Morgan Stanley, etc.).
A factory owner refusing to sell his factory to the "trust" ran the risk of seeing his credit cut. Commercial competition was becoming a thing of the past (Standard Oil, US Steel combined under J. P. Morgan and the Rothschilds to eliminate competition as Microsoft destroyed Netscape). The wages of labor fluctuated, depending on the requirements of the stock market (just wage?). Whenever a better statement of earnings was required, down went the wages. The Minister of Finance sat on the sidelines hoping to be taken care of himself by being rewarded a bank presidency (our corrupt Federal Reserve Open Market Committee Members look for their reward similarly form Wall St. after doing the bidding of the major financial house by jobs at high salaries and other perks. They compete in their corruption with the Supreme Court and the Congress.)
What is most interesting that these financial buccaneers financed the Bolsheviks under orders from Baron Eduard de Rothschild. The Rothschild newspapers attacked the Tsar but were curiously silent regarding these swindles (as in 2008 and 1987). "These nouveau riche swindlers (Michael Milken) sponsored the Bolshevik Maxim Gorky by a loan of several million rubles by the Siberian Bank, to establish "The New Life" newspaper and the monthly "The Annals". Both publications counted Lenin as their chief collaborator."
"Nothing could be stranger than the desire on the part of the "trust" to keep the fires of the revolution burning. (Not strange at all if this fellow, Grand Duke Alexander in his "Once A Grand Duke", excerpted from chapter entitled "The Eve", had only understood that the destruction of Russia was carefully planned by Baron Eduard de Rothschild. So it was also in 1991 by Baron Jacob Rothschild and his looting oligarchs in Russia.
Nor does Putin have the courage to remove Elvira from the Central Bank who is controlled by the west and is ruining the Russian economy as Powell is ruining it for Trump. Nor the moral courage to stop abortion or teach as Stalin to the children in the schools against onanism as described above. Stalin found a Russia so perverted that 98% of the girls were practicing solitary onanism according to what the Russian doctors told Dr. J. H. Kellogg who was Henry Ford's favorite doctor. Stalin taught in all the Russian schools that the conjugal act was restricted to procreation in marriage as taught by Saint Augustine in his "On The Good of Marriage, and thus during menstruation, nursing, or pregnancy it was forbidden. Masturbation and onanism was forbidden.
The Government first refused to believe the informers of the Secret Police but there was no sense in arguing the facts. A raid on Nicholas Paramonoff, one of the richest men in Russia, produced documents establishing his participation in the group of multi-millionaires who financed the printing and the distribution of Bolshevik pamphlets throughout the country."
And that ends the quote. So does history repeat itself in the Ukraine again. We have pointed out elsewhere the US should never have become involved in World Wars One and Two and what the above history does prove is that the instincts of Donald Trump have been right in his desire for detente with Russia which has been the source of his friction with the intelligence agencies. President Trump is hemmed in by the "system" which has not let him accomplish the reduction of the trade deficit, detente with Russia, the immigration wall, or the currency rigging so that they can get rid of him as a failure in 2020. The Chairman of the Federal Reserve Board even had the impudence to raise interest rates during a stock market crash that will raise the value of the dollar increasing the trade deficit in order to sabotage the last Congressional election so Trump would lose.
Scroll down for conclusion.
It is noteworthy that the oligarchs in Russia and the Ukraine are the same traitors to Russia as Trotsky, Zinoviev, Kamenev, and the today's Abramovitch, Vekselburg, etc. These are the new Yevraskaya or Yevsek Bolshevik element reporting in this case to Baron Jacob Rothschild instead of Baron Eduard de Rothschild who financed the looting and spoilation of Russia which continues. The wolves just changed from sheep's clothing to new attire. They are the same wolves we have on Wall St. who as similar Trotskyite oligarchs rob the US by manipulating markets and then use this power to morally destroy it by promoting sodomy and abortion. This can be found below in additional articles where their manipulations are described in great detail.
David Lifschultz
THE LIFSCHULTZ ORGANIZATION
DAVID@LIFSCHULTZORGANIZATION.COM
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