Money Masters Transcripts Part 23


Economic power was now centralized to a tremendous extent. Now it was time for a war - a really big war - in fact, the first World War. Of course, as the central bankers knew, nothing creates debts like warfare.

England was the best example up to that time. During the 119-year period between the founding of the Bank of England and Napoleon's defeat at Waterloo, England had been at war for 56 years. And much of the remaining time, she'd been preparing for war.

In World War I, the German Rothschilds loaned money to the Germans, the British Rothschilds loaned money to the British, and the French Rothschilds loaned money to the French. It was all highly profitable. In America, J.P. Morgan was the sales agent for war materials to both the British and the French.

In fact, six months into the war, Morgan became the largest consumer on earth, spending $10 million a day. His offices at 23 Wall Street were mobbed by brokers and salesmen trying to cut a deal. In fact, it got so bad that the bank had to post guards at every door and at the partners' homes as well.

Other Rothschild allies in the United States made out as well from the war. President Wilson appointed Bernard Baruch to head the War Industries Board. According to historian Jarnes Perloff, both Baruch and the Rockefellers profited by some $200 million during the war.

But profits were not the only motive. There was also revenge and power. The Money Changers never forgave the Czars for their opposition nor for supporting Lincoln during the Civil War. Also, Russia was the last major European nation to refuse to give in to the privately-owned central bank scheme.

Three years after World War I broke out, the Russian Revolution toppled the Czar. Jacob Schiff of Kuhn, Loeb & Company bragged on his deathbed that he had spent $20 million towards the defeat of the Czar. But the truth was that much of that money funded the communist coup d'etat replacing the democratically elected Kerensky regime, which had replaced the Czar months earlier.

The bankers were not so much enemies of the Czar, as they were intent on seizing power in Russia, through the Bolsheviks. Three gold shipments in 1920 alone, from Lenin to Kuhn, Loeb & Company and Morgan Guaranty Trust repaid the $20 million to the bankers, and this was just a small down payment.

But would some of the richest men in the world financially back communism, the system that was openly vowing to destroy the socalled capitalism that made them wealthy? Communism, like plutocracy, is a product of capitalism. Researcher Gary Allen explained it was this way:

"If one understands that socialism is not a share-the-wealth program, but is in reality a method to consolidate and control the wealth, then the seeming paradox of super-rich men promoting socialism becomes no paradox at all. Instead, it becomes logical, even the perfect tool for power-seeking megalomaniacs. Communism or more accurately, socialism, is not a movement of the downtrodden masses, but of the economic elite."

As W. Cleon Skousen put it in his 1970 book The Naked Capitalist:

"Power from anysource tends to create an appetite for additional power… It was almost inevitable that the super-rich would one day aspire to control not only their own wealth, but the wealth of the whole world. To achieve this, they were perfectly willing to feed the ambitions of fhe power-hungry political conspirators who were committed to the overthrow of all existing governments and the establishment of a central world-wide dictatorship."

But what if these revolutionaries get out of control and try to seize power from the Money Changers? After all, it was Mao Tse-tung who in 1938 stated his position concerning power:

"Political power grows out of the barrel of a gun."

The London/Wall Street axis elected to take the risk. The master-planners attempted to control revolutionary communist groups by feeding them vast quantities of money when they obeyed, and contracting their money supply, or even financing their opposition or fascist parties in bordering nations, if they got out of control. Lenin began to understand that although he was the dictator of the new Soviet Union, he was not pulling the financial strings, someone else was silently in control:

"The state does not function as we desired. The car does not obey. A man is at the wheel and seems to lead it, but the car does not drive in the desired diretion. It moves as another force wishes."

Who was behind it? Rep. Louis T. McFadden, the Chairman of the House Banking and Currency Committee throughout the 1920s and into the Great Depression years of the 1930s, explained it this way:

"The course of Russian history has, indeed, been greatly affected by the operations of international bankers… The Soviet Government has been given United States Treasury funds by the Federal Reserve Board … acting through the Chase Bank England has drawn money from us through the Federal Reserve banks and has re-lent it at high rates of interest to the Soviet Government… The Dnieperstory Dam was built with funds unlawfully taken from the United States Treasury by the corrupt and dishonest Federal Rseerve Roard and the Federal Reserve banks."

In other words, the Fed and the Bank of England, along with their controlling stock-holders, the Rothschilds, Rockefellers, Morgans, Schiffs, Warburgs, etc., were creating a monster, one which would fuel seven decades of unprecedented Communist revolution, warfare, and most importantly - debt.

The Soviet Union was also a useful counterbalance to Germany, and later to the U.S., until 1989 with its dismemberment into fifteen countries. China then became a new counterbalance to the U.S., and is being built up at the rate of over $100 million tollars a day by lopsided trade deals, IMF loans and Western invetments.

Such balance-of-power arrangements assure that the Money Changers cannot be overthrown worldwide by a political revolt in any single country. In that case, they simply shift support to the counter-balanced country. Additionally, the inevitable military rivalry between roughly balanced powers results in massive expenditures and so more national borrowing and debt.

In case one thinks there is some chance that the Money Changers got communism going and then lost control - keep in mind that even in the socialist paradise, Rockefeller's National City Bank (now Citigroup) in St. Petersburg was never nationalized, as were all Russian banks. Numerous Western bankers operated openly in the Soviet Union, and made vast profits.

However, setbacks, some major, did occur. For instance, it is likely the bankers early on preferred the more compliant Mensheviks to the more independent Bolsheviks, but Lenin got the upper hand. But both groups had the same end and so this was not a fundamental division. However, it did lead to a serious problem when Lenin died, as an even more independent sort - Stalin - squeezed out the bankers' candidate - Leon Trotzky (real name: Bronstein; whose wife was linked to the Warburgs) - and took control of Soviet Communism. Even then Stalin continued to fear Trotzky's powerful connections, and so had him tracked down and eventually assassinated in Mexico.

To pressure Stalin back into the ranks, as C.G. Rakovsky explained, the bankers financed Hitler, who was an avowed enemy of communism and openly advocated invading the Soviet Union. Anthony C. Sutton and others have documented the money trail from Wall Street to Hitler, which was mentioned above by Congressman McFadden. But it was only on the death of Stalin, with the rise of Khruschev et seq., that the Soviet Union was fully back in the ranks, securely under the bankers' control.

In 1992, The Washington Times reported that Russian President Boris Yeltsen was upset that most of the incoming foreign aid was being siphoned off "sraight back into the coffers of Western banks in debt service." Much of that debt was incurred under the prior communist regimes, which were heavily in debt to the Money Changers.

Similarly, once in power, Mao Tse-Tung spread his wings and expelled the Soviets from Red China leading to the Sino-Soviet rift of the 1960's. The U.S. and the U.S.S.R. initiated an encirclement policy of China including: heavy Soviet troop concentrations and border provocations in Manchuria; drawing North Korea and Mongolia tightly into the Soviet camp; placing nuclear weapons in Manchuria; arming Tibetan freedom fighters and Taiwanese troops; and establishing important U.S. (now Soviet) air and naval bases in Vietnam (such as Cam Rahn Bay) while beefing up U.S. forces in Guam, Japan, Laos and Thailand, all under the pretext of the Vietnam War.

Under this growing pressure, Mao first responded with internal political purges just as Stalin had done, but with the failure of the Great Leap Forward and with the U.S./U.S.S.R. noose tightening, Mao blinked and Kissinger was sent in to strike the deal.

Still, Mao's price for China's cooperation and integration in the bankers' one-world scheme was obviously high, here is the result: the encirclement ended, including U.S. abandonment of South Vietnam and Laos; China got Taiwan's U.N. seat (and doubtless a pledge of eventually getting Taiwan itseLf); a free hand in Tibet, Hong Kong; and gigantic bribes in the form of Western development of China.

This left the Bankers with few obstacles worldwide: Muslim fundamentalism here and there, India's nuclear development, and the weak remnants of Western nationalism (concentrated in the large U.S. middle class and in a minority of the British, French, and Russian aristocracy [e.g. Thatcher and Le Pen]).

To overcome these, the Russian Empire was dismembered into fifteen nations; the U.K, France and the U.S.A. are gradually being submerged into regional and global entities (such as NAFTA, WTO, MAI, EEC, EU, etc.) and Desert Storm et seq. is keeping the Muslims on a tight leash while India is being pressured to abandon its nuclear program.

The bankers' three main regional groupings: the European Union, the proposed American Union in the Western hemisphere, and Chinese dominance in Asia, are rapidly bringing to life Orwell's three virtually identical world nations set forth in his book 1984: Eurasia, Oceania and East Asia - all set to engage in perpetual war (WWIII) with its attendant debt and population reduction and control.

Wars are complex things with many causative factors. But on the other hand, it would also be equally foolish to ignore as a prime cause of World Wars I and II those who would profit the most from war, both financially and politically.

Senator Nye of North Dakota raised the possibility that the Wilson administration entered WWI, at a critical juncture for the allies, in order to protect huge Wall Street bank loans to the allies. During the War the U.S. money supply was doubled to pay for it, halving the dollar's purchasing power and so Americans' savings.

It is also interesting to note that the most belligerent pro-war hawk surrounding President Wilson was a man named Colonel Edward Mandell House, the son of a man commonly believed to be a Rothschild agent, who was himself closely associated with Wall Street and European bankers.

The role of the Money Changers is no wild conspiracy theory. They had a motive - a short-range, self-serving motive as well as a long-range, political motive of advancing totalitarian government, with the Money Changers maintaining the financial clout to control whatever politicians might emerge as the leaders.

Next, we'll see what the Money Changers' political goal for the world is. …

We must learn from our history before it is too late. Why can't politicians control the federal debt? Because all our money is created in parallel with an equivalent quantity of debt. Again, it's a debt-money system. Our money is created initially by the sale of U.S. Bonds. The public buys bonds, the banks buy bonds, foreigners buy bonds, and when the Fed wants to create more money in the system, it buys bonds but pays for them with brand new Federal Reserve Notes (or book entries) which it creates out of nothing. Then, whatever new money the Fed creates is multiplied by at least a factor of ten by the private banks, thanks to the fractional reserve principle. Actually, exceptions to the reserve ratios allow a much greater multiplier.

So, although the banks don't create currency, they do create checkbook money, or deposits, by making new loans. They even invest some of this created money. In fact, over one trillion dollars of this privately-created money has been used to purchase U.S. Bonds on the open market, which provides the banks with roughly 50 billion dollars in interest, risk free, each year, less the interest they pay some depositors. In this way, through fractional reserve lending, banks create far in excess of 90% of the money, and therefore cause over 90% of our inflation (approximately 97%).

What can we do about all this? Fortunately, viewed purely as a technical problem there's a way to fix the problem fairly easily (theoretically), speedily, and without any serious financial problems. We can get our county totally out of debt in 1-2 years by simply paying off U.S. bonds with debt-free U.S. Notes (or Treasury Department Deposits convertible to U.S. Notes) - just like Lincoln issued. Of course, that by itself would create tremendous inflation, since our currency is presently multiplied by the fractional reserve banking system.

But here's the ingenious solution advanced in part by Milton Friedman, and others, to keep the money supply stable and avoid inflation and deflation while the debt is retired. As the Treasury buys up its bonds on the open market with U.S. Notes, the reserve requirements of your hometown local bank will be proportionally raised so the amount of money in circulation remains constant.

As those holding bonds are paid off in U.S. Notes, they will deposit this money, thus making available the currency then needed by the banks to increase their reserves. Once all the U.S. bonds. are replaced with U.S. Notes, banks will be at 100% reserve banking, instead of the fractional reserve system currently in use.

From that point on, the former Fed buildings will only be needed as central clearing houses for checks, and as vaults for U.S. Notes. The Federal Reserve Act will no longer be necessary, and could be repealed. Monetary power would be under government control. There would be no further creation or contraction of money by banks.

By doing it this way, our national debt can be paid off in a single year or so, and the Fed and fractional reserve banking abolished without national bankruptcy, financial collapse, inflation or deflation, or any significant change in the way the average American goes about his business.

To the average person, the primary difference would be that for the first time since the Federal Reserve Act was passed in 1913, taxes would begin to go down and inflation would cease, preserving the value of their savings, wages and fixed incomes. Now there's a real national blessing for you, rather than for Hamilton's banker friends.

Without their awful money-creating power, the Money Changers would gradually lose their political control and clout. Of course, their mass media control is another issue, but even it depends on their massive money-creating power.

Now, let's take a look at these proposals in more detail. We have drafted a proposed Money Reform Act, which follows at the end of this text. Of course, variations with the same results would be equally welcome.

Acknowledgement and credits

The Money Masters: How International Bankers Gained Control of America

Video Script
Produced by Patrick S. J. Carmack
Directed by Bill Still
Royalty Production Company 1998

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