How Bankers Engineered World War I, Bolshevism, Nazism and the Great Depression

From da The Most Revolutionary Act:

Financing Hitler's Rise to Power

Book Review (Part 3 of 3)

Tragedy and Hope: A History of the World in Our Time
Carroll Quigley (1966 MacMillan)
Tragedy and Hope is a free download from
http://sandiego.indymedia.org/media/2006/10/119975.pdf
***
The most disturbing section of Tragedy and Hope describes how international bankers engineered World War I and what Quigley calls the Banker-Engendered Deflationary Crisis of 1927-40 (aka the Great Depression). The parallels are unmistakeable between the current “austerity cuts” being forced on us and the harsh economic measures the banks imposed on all western governments between 1918 and 1927. The supposed justification was to repay “debts” for a four year war the bankers themselves initiated.
According to Quigley, 19^th century capitalism saw a gradual transition from finance capitalism (in which bank loans fund economic growth) and monopoly capitalism (in which the profits generated by corporate monopolies
fund growth). Although some private banking families invested in a few monopolies, such as oil companies and railroads. However for the most part, they preferred not to tie up their wealth in industrial stocks, less this deprive them of short term gains from loans and currency speculation.

The Threat Posed by German Industrialization
In fact, many bankers saw the growth of monopoly capitalism as a serious threat to their own economic interests. Following the 1870 unification under Bismarck, Germany experienced a rapid burst of industrialization, generating sufficient profit that they ceased to rely on investment banks to finance either business or government. A second way German industrialization threatened global bankers was by competing with England and other European countries for export markets. Russia also posed a significant threat, owing to claims it made on the Balkans and the Middle East (and Middle East oil) following the break-up of the Ottoman (Turkish) Empire.

Thus between 1870 and 1914, the world banking oligarchy pressured western governments (by controlling their money supply and foreign exchange) to agree to a series of complicated alliances that had the ability to escalate local conflicts in unstable regions formerly controlled by Turkey into a full scale war (on Austria and Germany). The one that ultimately triggered World War I was a false flag incident (blamed on Serbia) involving the assassination of the heir to the Austrian throne. During the same period, the world banking cabal simultaneously hatched a scheme to destabilize Russia by secretly funding the Bolsheviks and other Russian revolutionaries.

Turning a Profit from World War I
The European central banks had it all worked out beforehand how they would turn the 1914 conflict that began in Sarajevo (which they believed would only last four to six months) to their own profit. Quigley describes a secret meeting in July 1914 (war was declared August 4, 1914) in which the major European bankers agreed to allow the British Treasury to print treasury notes to pay outstanding government bank debts. However this would only be with the understanding that this “fiat” money would be redeemed with gold certificates (via increased taxation) at the war’s end. They ultimately forced similar agreements on France and the US.

Financing Hitler and the Nazis
When the war ended in 1918, public debt in Western Europe and the US had increased by 1000%. The austerity measures global investment banks forced on the US, England, France and other European countries led to a massive bankruptcies and unemployment and the virtual collapse of foreign trade. Except in Germany. The global banking elite used the wealth generated from debt repayment to finance rapid German re-industrialization and militarization, along with the Nazi movement created by Hitler and the increasingly powerful German corporations, such as IG Farben, Siemens (renamed Bayer), Daimler Benz, Porsche/Volksvagen and Krupp. Quigley identifies American banks and corporations who helped finance the Nazi movement, which included Kodak, Ford, Coca-Cola, DuPont, Standard Oil, IBM, Random House and Chase Bank.

The bankers justified funding Hitler and re-militarizing Germany by talking of the need to contain a growing world communist movement – which they themselves had created.

OWS polls: Majority of Zuccotti Park OWS Would Vote for Obama. 49% Consider Bank Bailouts "necessary"

By Kurt Nimmo

Infowars.com - October 20, 2011

It has been difficult to pin down the OWS crowd politically. Beyond their signs and encounters with the corporate media calling for taxing the rich and complaining about student loans and a lack of employment opportunities, the OWS as a whole has remains politically amorphous.

Douglas Schoen, a Democrat Party pollster, recently sent a polling firm into Zuccotti Park and attempted a somewhat professional polling of the OWS crowd.

According to the results of Schoen’s poll, most participants do not identify with a political party (33%). A slightly smaller number (32%) identify themselves as Democrats. 6% openly call themselves socialists while an identical number claim to be Libertarians. Sadly, only 1% identify themselves as Constitutionalists.

A full 74% of those who claim they voted in the last election (56%) say they voted for Obama.

48% say they would vote to re-elect Obama, while only 25% say no and 27% indicate they are unsure.

Remarkably, a full 44% say they approve of the job of Obama’s doing.

If Schoen’s poll can be believed (we have to keep in mind he is a Democrat operative), the OWS crowd appears to be seriously ignorant of the fact Obama was elected with an influx of Wall Street money – specifically, Goldman Sachs money. In fact, this time around, Obama has received more political contributions from Wall Street and the financial sector than any of his Republican rivals.

Obama’s administration is populated with the sort of people the OWS crowd claims to oppose – individuals representing the banking and financial sectors, the Federal Reserve, the Council on Foreign Relations, the Trilateral Commission and the Bilderberg Group. In other words, the globalists who have shipped American jobs overseas to slave labor gulags and have saddled a shrinking middle class with an unpayable debt burden.

If the OWS crowd continues to remain ignorant of basic political and economic facts, we can expect the movement to degenerate into another love fest for the globalist teleprompter reader Obama come the 2012 election. The mere fact nearly 50 percent approve of what Obama is doing – continuing the globalist agenda of his predecessor – is evidence enough that the OWS is irrelevant and indeed represents a dangerous political trend.

Like the Tea Party, the movement is likely to be compromised by the establishment and used to reaffirm the political duopoly owned by the bankers. And like the Tea Party, the reason for the sell-out can be attributed to political naivete and an inability to grasp the political reality.

If cold weather disperses the OWS crowd later this month or early next month, it is likely the movement will become atomized and disconnected. As individuals believing in a fairy tale version of reality – only partly understood in a generalized distrust of banks and Wall Street – we can expect many OWS supporters to follow the call of the bankster Democrats come next November.

________--

More (?):

Poll: 49% of Occupy Wall Street Protesters Think the Bank Bailouts Were Necessary

Hey, Occupy Wall Street: What, No Anti-Obama Signs?

Let's teach "Occupussies" some strong communism!

Liberate Wall Street: Infiltrate and Humiliate!

These emails for the Google group set up to "organize" Occupy Wall Street were placed on Mediafire by an uknown individual. DC406 makes them available with no judgement. Search them for yourselves.

(Bring In The Fat Lady) 20.10.2011: Unofficial Death Date of the Euro

From 24hgold, October 20th, 2011

by The Prudent Investor

It was exactly one year ago that I announced the death of the Euro due to the fact that EU talks on the EFSF had stalled by 20.10.2010.
Now here we are one year later and the latest official statement by French president Nicolas Sarkozy after a late night meeting with German chancellor Angela Merkel on Wednesday was only a terse "talks are stuck

."
While this is not exactly news - that's been the situation since 2008 - Germany's first failed auction of 10 year Bunds is all the more and comes only a day after Spain could not sell the full allotment of €5 billion in short term treasury notes.
GET IT:  Europe is not able anymore to raise the money it needs!

Germany's Failed Bund Auction Implies There Is No More European Benchmark
On Wednesday Germany had attempted to top up its September 2021 Bund by another €5 billion. Alas, there were no buyers for this amount. The Bundesbank drew only 4.5 billion in bids and had to retain €925 million for 'secondary market operations' on its own books. This is the first time in the history of post WW2 Germany that investors balked away from a German government bond issue.

In a sane world this would be called monetizing the debt.
This implies that the Eurozone has no more benchmark government debt issue.
Here is the announcement of defeat by the Bundesbank:

Reuters summarized:

Germany sold 4.075 billion euros in its final reopening of the September 2021 bond, bringing the outstanding amount to 16 billion euros. A new January 2022 benchmark will be launched in November. The bid/cover ratio at the sale was 1.1, below the 1.5 at the previous sale in September and the 2011 average at 10-year Bund sales of 1.61, according to Reuters data. But with a target amount of 5 billion euros -- the Bundesbank retained 0.925 billion euros -- the 4.55 billion euros of bids drawn did not match the amount on offer.  

The last 10-year auction deemed a technical failure was in July. "Looking at the bid/cover and the fact that ... we're facing an undersubscribed auction it shows that when risk appetite is on the rise it's difficult for the Finanzagentur to find enough demand out there," said WestLB's Leister.

Markets have stoically ignored this tectonic shift so far with the Euro holding its levels and gold receding further to $1,610 mark.
This is all insane.

____________-


Related:

European debt crisis talks plunged into chaos as leaders announce another summit

Plans to 'decisively address' the debt crisis this weekend were plunged into chaos on Thursday night as European leaders were forced to announce another 'summit' next week amid political deadlock between France and Germany.

Euro Summit Statement "Leaked" Draft Looks Like Swiss Cheese; 10-Point Proposal for More Meetings

French and German rift threatens to unravel EU

A widening gulf between France and Germany is making it impossible for officials to come up with a written common agreement.

EU Given Rope, Hangs Itself

Consensus is Greek Default by April of 2012

Italian bond yields reach point of no return

As the UK discovered to its cost during its ill-fated membership of the ERM, it is tough to impossible to be in any form of currency union with Germany

Kicking of the “Farewell Euro Tour”

Euro’s Demise Precedes Dollar’s Doom

Greece Moons the EU and the IMF

Eurocracy Prepares To Shoot The Messenger

From The Business Insider: 

Some officials think that the best way to handle ratings agencies during a crisis is to simply shut them up.

European Internal Market Commissioner Michael Barnier is considering a proposal that would allow a new EU agency to "temporarily prohibit" the publication of reports that assess a country's liquidity, according to a report in FT Deutscheland (via Der Spiegel).

An internal draft of a reform to EU law obtained by the paper would allow EU officials to stop the publication of reports on countries negotiating for aid that fulfill certain "strict" criteria.

Barnier believes that ratings agencies can make inaccurate reports in times of crisis, leading to speculative attacks that catalyze liquidity problems.

It's unclear how such a move will really help, however, as a moratorium on ratings reports would still signal severe financial distress. Not to mention how much it reeks of censorship.

Please follow Money Game on Twitter and Facebook.

Join the conversation about this story »

See Also:

• REVEALED: Europe's Plan To Destroy The Ratings Agencies
• Europe May Adopt Cutting-Edge ‘I Can’t Hear You’ Approach to Credit Ratings  
• EU Considers Temporary Bans on Sovereign Ratings  
• THE DOWNLOAD: Can Europe Really Solve All Its Issues By This Weekend?
• Morgan Stanley: These New 'Nifty 50' Stocks Could Crush The Market For Years To Come
• CANCEL ALL YOUR PLANS: Europe Is Going To Ruin Your Sunday

HOLY BAILOUT - Federal Reserve Now Backstopping $75 Trillion Of Bank Of America's Derivatives Trades

From The Daily Bail:

UPDATE - Chcek out regulator William Black's blistering reaction to this story HERE.
---
This story from Bloomberg just hit the wires this morning.  Bank of America is shifting derivatives in its Merrill investment banking unit to its depository arm, which has access to the Fed discount window and is protected by the FDIC.
This means that the investment bank's European derivatives exposure is now backstopped by U.S. taxpayers.  Bank of America didn't get regulatory approval to do this, they just did it at the request of frightened counterparties.  Now the Fed and the FDIC are fighting as to whether this was sound.  The Fed wants to "give relief" to the bank holding company, which is under heavy pressure.
This is a direct transfer of risk to the taxpayer done by the bank without approval by regulators and without public input.  You will also read below that JP Morgan is apparently doing the same thing with $79 trillion of notional derivatives guaranteed by the FDIC and Federal Reserve.
What this means for you is that when Europe finally implodes and banks fail, U.S. taxpayers will hold the bag for trillions in CDS insurance contracts sold by Bank of America and JP Morgan.  Even worse, the total exposure is unknown because Wall Street successfully lobbied during Dodd-Frank passage so that no central exchange would exist keeping track of net derivative exposure.
This is a recipe for Armageddon.  Bernanke is absolutely insane.  No wonder Geithner has been hopping all over Europe begging and cajoling leaders to put together a massive bailout of troubled banks.  His worst nightmare is Eurozone bank defaults leading to the collapse of the large U.S. banks who have been happily selling default insurance on European banks since the crisis began.
---
Bloomberg
Excerpt:
Bank of America Corp. (BAC), hit by a credit downgrade last month, has moved derivatives from its Merrill Lynch unit to a subsidiary flush with insured deposits, according to people with direct knowledge of the situation.
The Federal Reserve and Federal Deposit Insurance Corp. disagree over the transfers, which are being requested by counterparties, said the people, who asked to remain anonymous because they weren’t authorized to speak publicly. The Fed has signaled that it favors moving the derivatives to give relief to the bank holding company, while the FDIC, which would have to pay off depositors in the event of a bank failure, is objecting, said the people. The bank doesn’t believe regulatory approval is needed, said people with knowledge of its position.
Three years after taxpayers rescued some of the biggest U.S. lenders, regulators are grappling with how to protect FDIC- insured bank accounts from risks generated by investment-banking operations. Bank of America, which got a $45 billion bailout during the financial crisis, had $1.04 trillion in deposits as of midyear, ranking it second among U.S. firms.
“The concern is that there is always an enormous temptation to dump the losers on the insured institution,” said William Black, professor of economics and law at the University of Missouri-Kansas City and a former bank regulator. “We should have fairly tight restrictions on that.”

Moody’s Downgrade

The Moody’s downgrade spurred some of Merrill’s partners to ask that contracts be moved to the retail unit, which has a higher credit rating, according to people familiar with the transactions. Transferring derivatives also can help the parent company minimize the collateral it must post on contracts and the potential costs to terminate trades after Moody’s decision, said a person familiar with the matter.
Keeping such deals separate from FDIC-insured savings has been a cornerstone of U.S. regulation for decades, including last year’s Dodd-Frank overhaul of Wall Street regulation.
U.S. Bailouts
Bank of America benefited from two injections of U.S. bailout funds during the financial crisis. The first, in 2008, included $15 billion for the bank and $10 billion for Merrill, which the bank had agreed to buy. The second round of $20 billion came in January 2009 after Merrill’s losses in its final quarter as an independent firm surpassed $15 billion, raising doubts about the bank’s stability if the takeover proceeded. The U.S. also offered to guarantee $118 billion of assets held by the combined company, mostly at Merrill.
Bank of America’s holding company -- the parent of both the retail bank and the Merrill Lynch securities unit -- held almost $75 trillion of derivatives at the end of June, according to data compiled by the OCC. About $53 trillion, or 71 percent, were within Bank of America NA, according to the data, which represent the notional values of the trades.
That compares with JPMorgan’s deposit-taking entity, JPMorgan Chase Bank NA, which contained 99 percent of the New York-based firm’s $79 trillion of notional derivatives, the OCC data show.
Moving derivatives contracts between units of a bank holding company is limited under Section 23A of the Federal Reserve Act, which is designed to prevent a lender’s affiliates from benefiting from its federal subsidy and to protect the bank from excessive risk originating at the non-bank affiliate, said Saule T. Omarova, a law professor at the University of North Carolina at Chapel Hill School of Law.
“Congress doesn’t want a bank’s FDIC insurance and access to the Fed discount window to somehow benefit an affiliate, so they created a firewall,” Omarova said. The discount window has been open to banks as the lender of last resort since 1914.
Continue reading at Bloomberg...




Related stories:

• Behind Europe’s Debt Crisis Lurks Another Giant Bailout Of Wall Street Banks

• William Black: Not With A Bang, But A Whimper: Bank Of America’s Derivatives Death Rattle

_____


Related:

Government Bailouts By Design

Who Will Bail Out the Rescuers?

Ironic “Scariest Chart Ever” Redux – America Will Surpass 100% Debt To GDP On Halloween