Is a Crash Coming?

It’s rare – but occasionally you’ll see a mainstream media article that contains some truth.

This is one of those articles.

For the record – the Fed is not ‘nervous’ or ‘worried’ about these developments.  The Fed created these developments.

From the article – here’s the #1 reason things are heading south.  Remember – this is what happens when your money is created by debt.  Eventually – the math of exponential debt growth catches up to you – and runs you over.

“People still owe way too much money. Households, corporations, states, local governments and, of course, Uncle Sam. It's the debt, stupid. According to the Federal Reserve, total U.S. debt—even excluding the financial sector—is basically twice what it was 10 years ago: $35 trillion compared to $18 trillion.”

If you think this is a mystery to the Federal Reserve, the Bank of England, the European Central Bank, the IMF, Bernanke, Greenspan, Obama, Geithner, etc., etc. – you’re living in a fantasy.

I have a feeling that the next couple of months – which have historically seen significant stock market volatility – will be rather exciting.

jg – August 13, 2010

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August 13, 2010

Is a Crash Coming? Ten Reasons to Be Cautious

Wall St. Journal

Could Wall Street be about to crash again?

This week's bone-rattlers may be making you wonder.

I don't make predictions. That's a sucker's game. And I'm certainly not doing so now.

But way too many people are way too complacent this summer. Here are 10 reasons to watch out.

1. The market is already expensive. Stocks are about 20 times cyclically-adjusted earnings, according to data compiled by Yale University economics professor Robert Shiller. That's well above average, which, historically, has been about 16. This ratio has been a powerful predictor of long-term returns. Valuation is by far the most important issue for investors. If you're getting paid well to take risks, they may make sense. But what if you're not?

2. The Fed is getting nervous. This week it warned that the economy had weakened, and it unveiled its latest weapon in the war against deflation: using the proceeds from the sale of mortgages to buy Treasury bonds. That should drive down long-term interest rates. Great news for mortgage borrowers. But hardly something one wants to hear when the Dow Jones Industrial Average is already north of 10000.

3. Too many people are too bullish. Active money managers are expecting the market to go higher, according to the latest survey by the National Association of Active Investment Managers. So are financial advisers, reports the weekly survey by Investors Intelligence. And that's reason to be cautious. The time to buy is when everyone else is gloomy. The reverse may also be true.

Crowds panic on Wall Street on Oct. 24, 1929.

4. Deflation is already here. Consumer prices have fallen for three months in a row. And, most ominously, it's affecting wages too. The Bureau of Labor Statistics reports that, last quarter, workers earned 0.7% less in real terms per hour than they did a year ago. No wonder the Fed is worried. In deflation, wages, company revenues, and the value of your home and your investments may shrink in dollar terms. But your debts stay the same size. That makes deflation a vicious trap, especially if people owe way too much money.

5. People still owe way too much money. Households, corporations, states, local governments and, of course, Uncle Sam. It's the debt, stupid. According to the Federal Reserve, total U.S. debt—even excluding the financial sector—is basically twice what it was 10 years ago: $35 trillion compared to $18 trillion. Households have barely made a dent in their debt burden; it's fallen a mere 3% from last year's all-time peak, leaving it twice the level of a decade ago.

6. The jobs picture is much worse than they're telling you. Forget the "official" unemployment rate of 9.5%. Alternative measures? Try this: Just 61% of the adult population, age 20 or over, has any kind of job right now. That's the lowest since the early 1980s—when many women stayed at home through choice, driving the numbers down. Among men today, it's 66.9%. Back in the '50s, incidentally, that figure was around 85%, though allowances should be made for the higher number of elderly people alive today. And many of those still working right now can only find part-time work, so just 59% of men age 20 or over currently have a full-time job. This is bullish?

(Today's bonus question: If a laid-off contractor with two kids, a mortgage and a car loan is working three night shifts a week at his local gas station, how many iPads can he buy for Christmas?)

7. Housing remains a disaster. Foreclosures rose again last month. Banks took over another 93,000 homes in July, says foreclosure specialist RealtyTrac. That's a rise of 9% from June and just shy of May's record. We're heading for 1 million foreclosures this year, RealtyTrac says. And naturally the ripple effects hurt all those homeowners not in foreclosure, by driving down prices. See deflation (No. 4) above.

8. Labor Day is approaching. Ouch. It always seems to be in September-October when the wheels come off Wall Street. Think 2008. Think 1987. Think 1929. Statistically, there actually is a "September effect." The market, on average, has done worse in that month than any other. No one really knows why. Some have even blamed the psychological effect of shortening days. But it becomes self-reinforcing: People fear it, so they sell.

9. We're looking at gridlock in Washington. Election season has already begun. And the Democrats are expected to lose seats in both houses in November. (Betting at InTrade, a bookmaker in Dublin, Ireland, gives the GOP a 62% chance of taking control of the House.) As our political dialogue seems to have collapsed beyond all possible hope of repair, let's not hope for any "bipartisan" agreements on anything of substance. Do you think this is a good thing? As Davis Rosenberg at investment firm Gluskin Sheff pointed out this week, gridlock is only a good thing for investors "when nothing needs fixing." Today, he notes, we need strong leadership. Not gonna happen.

10. All sorts of other indicators are flashing amber. The Institute for Supply Management's manufacturing index, while still positive, weakened again in July. So did ISM's new-orders indicator. The trade deficit has widened, and second-quarter GDP growth was much lower than first thought. ECRI's Weekly Leading Index has been flashing warning lights for weeks. Europe's industrial production in June turned out considerably worse than expected. Even China's steamroller economy is slowing down. Tech bellwether Cisco Systems has signaled caution ahead. Individually, each of these might mean little. Collectively, they make me wonder. In this environment, I might be happy to buy shares if they were cheap. But not so much if they're expensive. See No. 1 above.

Write to Brett Arends at brett.arends@wsj.com

Global Monetary System Nearing its End - May 19 2010

Hello everyone,

This will be the final email I send out regarding what’s going on with our economy and the world’s financial system. I have a blog – and will continue to add to it – but this stuff is becoming repetitive – and I’m not sure that sending you updates at this point really benefits anyone. These things are not exactly uplifting and it’s getting worse every day.

So – here’s what you need to know. There are four – very important things you need to understand as events unfold in the coming days/months.

1. The world’s economy is collapsing – and has been collapsing for the past 3 years. It has always been unsustainable – we just happen to be alive at the end of our exponential debt/money growth curve. Exponential growth always ends with a steep incline up – then a catastrophic fall – always. Unlike our political and financial leaders – math doesn’t lie. You may not believe this now – but it will become clear to everyone very soon. Things are accelerating rapidly. At some point – you’ll begin hearing the talking heads on TV using the term ‘free fall’ quite often. If you don’t understand why everyone isn’t saying this now – ask yourself how many times (high school, college, economists, etc.) you’ve heard someone explain how our banking/monetary system works. Enough said. If you want a refresher – here are a couple of links to related blog posts:

http://endtimediscussions.blogspot.com/2006/09/our-monetary-system.html

http://endtimediscussions.blogspot.com/2006/09/our-monetary-system-part-ii-market.html

2. This global economic collapse is not an accident or random event – nor is it going to be a surprise to many of the world’s political and financial leaders. There is an agenda at work here – and it is evil. No other way to say it. The people behind this are the richest, most powerful people in the world – and they have been scheming for hundreds of years – to bring the world to the brink of the abyss. Why? They have used their financial strength to cause financial panics in the past to move their plans forward – we’re watching the same game plan play out before us on a global scale. The goal has always been a one world socialist government (very similar to the USSR or China) with the global elite running the show. If you think Obama appears to lean toward Socialism – you’d be correct – but probably not in the way you think. George W. had his role as well. Alice – this rabbit hole goes far deeper than most people know.

3. Regardless of what you’re told - all of the government stimulus plans, positive media spin and central bank ‘actions’ over the past 2 years have been done for one purpose – to give the impression that the world’s governments and world’s central banks have done everything possible to save the system. They are attempting to shift the focus (blame) for all of this to sovereign fiscal mismanagement, individual and corporate debt loads, bad mortgages, etc. What they don’t tell you is that exponential debt growth is required for the system to function. The problem today is that the global system is now saturated with debt – a direct result of the debt based monetary system itself. This is why trying to solve a debt problem with more debt (see U.S. and European bailouts) is doomed to failure. Systemic failure may happen today, tomorrow, next month – but it is coming – and there is nothing that anyone can do that will prevent this (except changing the system). Again – math doesn’t lie. At some point – even mainstream media will begin acknowledging that something is seriously wrong – you’ll know we’re at the end when this happens.

4. Don’t panic. If God could see these people and their evil plans since the foundation of the earth – and told us about them 2,000 years ago (Revelation 13, 17, & 19 are some of His references to these people) – I feel confident that He has a plan for His people to stand against them. He always has a plan for His people – and He always will. Regardless of what happens here – our focus needs to remain with Him. If this makes you uncomfortable – time to pick-up a Bible and start learning the truth. We have allowed our enemy to blind us – time to turn things around and focus on what’s important.

There are some very intelligent money managers/institutional investors/Economists/Arm-chair quarterbacks, etc. – who are now saying what I’ve been trying to tell people since 2005 – the system appears to be unsustainable – and it’s going to lead to some very unpleasant things. Read the exerpts below.

As for today – we’re seeing some massive Central Bank intervention and German efforts (ban on naked short selling) to save the Euro and keep all of the balls in the air. Other than a possible short term uplift - it won’t help. We followed the same game plan in 2008 – and the result was not good (See: Lehman Brothers bankruptcy). Asian and European stocks are tanking again today (down 2% on average) and the Dow is currently down 120 after plunging 200 points earlier. Over 80% of the stocks on the NYSE are currently declining (same story as yesterday). Expect this type of volatility to increase until we experience another ‘event’ like May 6th – then – all bets are off. Wealthy people will then find out that they have built their lives on a foundation of sand. Sound familiar? If not – again – it’s time to pick-up a Bible and start learning how to build your life on a solid foundation.

Take Care,

John – May 19, 2010
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Bears Come Roaring Forth

By Barry Ritholtz - May 19th, 2010, 9:30AM

I am on an email list that is from a group smart hedgies and strategists. The discussions range far and wide, and while I sometimes disagree with the conclusions, but I always find the conversation provocative.

Lately, they’ve been emailing a collection of warnings of various fund managers and strategists:

• Long time Dow Theorist Richard Russell set out this dire warning:

“Do your friends a favor. Tell them to “batten down the hatches” because there’s a HARD RAIN coming. Tell them to get out of debt and sell anything they can sell (and don’t need) in order to get liquid. Tell them that Richard Russell says that by the end of this year they won’t recognize the country. They’ll retort, “How the dickens does Russell know — who told him?” Tell them the stock market told him.”

• Reuters reported that well regarded hedge fund manager Seth Klarman “sees few bargains in the current environment and predicted on Tuesday that the stock market could suffer another lost decade without any gains.” Klarman is concerned that we could see “another 10 years of zero returns.” He has 30 percent of assets at his $22 billion Baupost Group in cash, he said. (His firm started in 1982 with $27 million and has averaged 20 percent annual gains ever since).

• Raoul Pal of Global Macro Investor got even more specific warning in his newsletter: Crash Is Coming In Two Days-To-Two Weeks. He sees as an “archetypal crash pattern — a sharp decline followed by a failed rally followed by a collapse.”

• But as Art Cashin of UBS pointed out in his morning missive, stark bear warnings are not restricted to equities. He cites Nouriel Roubini warned on the U.S. Treasury Market:

“Bond market vigilantes have already woken up in Greece, in Spain, in Portugal, in Ireland, in Iceland, and soon enough they could wake up in the U.K., in Japan, in the United States, if we keep on running very large fiscal deficits,” Roubini said at an event at the London School of Economics yesterday. “The chances are, they are going to wake up in the United States in the next three years and say, ‘this is unsustainable.”
_______________________

Global Macro's Raoul Pal: Here's Why A Crash Is Coming In Two Days-To-Two Weeks

Joe Weisenthal
May. 18, 2010, 2:15 PM


We don't mean for it to be doom and gloom day, but Richard Russell isn't the only big name pundit to be calling for a fall.

Raoul Pal, who writes Global Macro Investor newsletter, and whose bio cites stints at GLD and Goldman Sachs, is out with a very specific crash call. In his latest note he calls for a big move down in just two days to two weeks.

That's refreshingly specific!

So what's the reason?

It's all about what he sees as an archetypal crash pattern -- a sharp decline followed by a failed rally followed by a collapse.

It looks like this:

Image: Global Macro Investors

That's an unspecific chart, but here's a more specific one, based on the current post-flash crash market.

Image: Global Macro Investors

And now, here's the kicker. It's the current market vs. 1929, which is what prompts him to see a crash as imminent.

Image: Global Macro Investors

And finally, here's the flash crash vs. 1987

Image: Global Macro Investors

Get the picture?

Bush Tries to Build Support for Plan

I don’t know what else to say except – our President is lying to us. He couldn’t push through this bailout plan quickly – there is growing opposition – so he resorts to a primetime address to the nation. He’s threatening us in the same manner as Bernanke – accept this bailout or else. These are not incompetent people – they know that this bailout plan will not solve our economic problems. Why are they pushing this? Because they are weak and are told to do so by people in power. Our nation’s finances are being systematically destroyed.

What is really happening? What do we see if we ignore the rhetoric? We see our government and the Federal Reserve taking control of everything – our financial institutions, our mortgages and our very livelihood – and the plan appears to be working.

No one – in the history of the United States – has done more to destroy our nation than George W. Bush. Our constitution, our financial institutions, our military and our middle class are being assaulted – and we’re losing the battle.

I would like to ask our President what it feels like to sell himself out to something as evil as this. What does it feel like every night, lying in bed – knowing that you are destroying the United States and the lives of Americans? What does it feel like to gain the world – and lose your soul? I would like to think that somewhere, deep down – he regrets the path that he has followed. After watching him over the past couple of years – I have my doubts.

jg
9/24/2008
______________________________________

SEPTEMBER 24, 2008, 9:32 P.M. ET
Bush Tries to Build Support for Plan
WASHINGTON -- President George W. Bush on Wednesday warned Americans and legislators reluctant to pass a historic financial rescue plan that failing to act fast risks wiping out retirement savings, rising foreclosures, lost jobs, closed business and "a long and painful recession."
Associated Press

In this video image from APTN, President Bush speaks in a prime-time address from the Cross Hall of the White House in Washington, Wednesday.

He spoke just after inviting Democrat Sen. Barack Obama and Republican Sen. John McCain, one of whom will inherit the mess in four months, and key congressional leaders to an extraordinary White House meeting Thursday to hammer out a compromise.
"Without immediate action by Congress, America could slip into a financial panic and a distressing scenario would unfold," Mr. Bush said in a prime-time address from the White House East Room that he hoped would help rescue his tough-sell bailout package.
Mr. Bush explicitly endorsed several of the changes that have been demanded in recent days from the right and left. But he warned that he would draw the line at regulations he determined would hamper economic growth.

"It should be enacted as soon as possible," the president said.

The president's high-stakes speech reflects the difficulties he is experiencing in selling the plan, which would benefit large financial institutions – and their executives – at a time when ordinary Americans are feeling their own pain from the weak economy, high energy prices and rising unemployment.

So far, the White House has relied largely on the credibility of Treasury Secretary Henry Paulson – a former Goldman Sachs CEO – and Federal Reserve Chairman Ben Bernanke to convince a skeptical Congress.

But many lawmakers are hesitating, as they're being deluged with complaints about the plan from voters just weeks before the November election.

The White House now is playing its top card – a presidential address to the nation – to persuade the public that the plan is really needed, and that everyone will suffer if the government doesn't act. The administration's hope is that Congress still can pass the plan within days to prevent more dangerous lockups in credit markets. But the risk is that Mr. Bush, with his popularity near its lowest point and less than four months left to go in his term, won't be able to seal the deal either, and the administration will have to alter the plan dramatically.

In particular, Mr. Bush is seeking to sell the plan to many members of his own party, who've been among its most prominent critics so far. Republican support has been so soft that some Democrats worry they'll have to take on most of the responsibility for passing it, exposing themselves to big political risk. Alternatively, Democrats worry they would be blamed for the financial fallout if they reject the bill. So some Democrats on Tuesday specifically called on Mr. Bush to give the address to the nation, hoping to spread the political risk.

White House press secretary Dana Perino said the administration chose tonight for the speech because Congress is getting closer to a solution, and the president feels he should speak directly to the American people. "Everyone will tune in tonight because we are facing a once-in-a-century crisis in our financial markets," she said.

Illuminati Quotes Regarding the New World Order

Here’s another collection of quotes by the global elite regarding the New World Order.


Are you beginning to understand that the history of the world that you have been taught – is not the truth?


You’ll also notice the reference to Lucifer in a few of these quotes.  Remember – although we tend to focus on the physical world around us – this is a spiritual war.

jg

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updated 11 April 1999


Note – The word "Illuminati" was the predecessor of the two terms Zionism and / or Freemasonry.
"It doesn't matter who the people voted for; they always vote for us".


Illuminati Statement 


"We are not going to achieve a new world order without paying for it in blood as well as in words and money."


Arthur Schlesinger, Jr., in Foreign Affairs (July/August 1995)


THAT quotation and the following - and many others like them – clearly demonstrate that the words "new world order" are deadly serious and furthermore, have been in use for decades. They did not originate withPresident George Bush in 1990. The "old world order" is one based on independent nation-states. The "new world order" involves the elimination of the sovereignty and independence of nation-states and some form of world government. This means the end of the United States of America, the U.S. Constitution, and the Bill of Rights as we now know them. Most of the new world order proposals involve the conversion of the United Nations and its agencies to a world government, complete with a world army, a world parliament, a world court, global taxation, and numerous other agencies to control every aspect of human life (education, nutrition, health care, population, immigration, communications, transportation, commerce, agriculture, finance, the environment, etc.). The various notions of the "new world order" differ as to details and scale, but agree on the basic principle and substance.


"The world is governed by personalities very different to what people that cannot see further than their eyes, believe"


Benjamin Disraeli, Statesman


"Behind the October Revolution there are more influential personalities than the thinkers and executors of Marxism"


Lenin, Illuminati


"The one who cannot see that on Earth a big endeavor is taking place, an important plan, on which realization we are allowed to collaborate as faithful servants, certainly has to be blind"


Winston Churchill, 33 Degree Freemason


"What we say, goes"


George Bush, Illuminati - as a response to what would happen after the collapse of the Soviet Union. He referred to the Council on Foreign Relations.


"... in politics nothing is accidental. If something happens, be assured it was planned this way"


Franklin D. Roosevelt, 32 Degree Freemason


"Give me the power of the money and it will not matter any more who is commanding"


Mayer Amschel Rothschild, Illuminati


The following is from the magazine Progress for all January 1991, an interview regarding the clarification of the Pyramid and the shining eye on the back of the US One Dollar Bill:


"The seal of the pyramid was created by the Rothschild family and brought to North America by Benjamin Franklin and Alexander Hamilton before 1776. The Rothschild family is the head of the organization in which I entered in Colorado. All the Occult Brotherhoods are part of it. It is a Lucifer Organization to install his reign in the whole world. The eye on the pyramid is the eye of Lucifer . Supposedly the Rothschilds have personal dealings with the Devil. I have personally been in his villa and have experienced it.


And I know it is true".


John Todd, Masonic Council of Thirteen


Directed to the 23 Supreme Councils of the Illuminati 4 June 1889:


"To you, Sovereign Instructors of Grade 33, we tell you: you have to repeat to the brothers of inferior grades that we worship only one God to whom we pray without superstition. It is we, Initiated in the Supreme Grade, that are to keep the real Masonic religion preserving pure the Lucifer doctrine"


Albert Pike, Illuminati, founder of the Ku Klux Klan, and also one of the major Generals of the Confederate Army of the Southern states during the American Civil War


"When nations get disappointed on their governments, the population will start to clamour for a singular Government that can bring peace and harmony. This will be the moment to enthrone our sovereign"


Member of the Illuminati


"After the monarchies have lost their prestige, we will elect Presidents among persons that can be obedient servants. The elected ones must have some black spot in their past in order to be able to keep them silenced because of fear of being discovered by us. At the same time tied by the acquired position of power, enjoying the honors and privileges of a President, make them feel anxious to co-operate, not to loose it".


Protocols of the Wise Men of Zion [1776], Illuminati doctrines


"If we like it or not, we will have a One World Government. The question is if it will be achieved through consent or through conquest"


J. Warburg, Illuminati and Rothschild banker


"The Technocratic Age is slowly designing an every day more controlled society. The society will be dominated by an elite of persons free from traditional values (!) who will have no doubt in fulfilling their objectives by means of purged techniques with which they will influence the behavior of people and will control and watch the society in all details". "... it will become possible to exert a practically permanent watch on each citizen of the world".


Zbigniew Brzezinski, Illuminati and co-founder of Trilateral Commission


"Today, America would be outraged if U.N. troops entered Los Angeles to restore order [referring to the 1991 LA Riot]. Tomorrow they will be grateful! This is especially true if they were told that there were an outside threat from beyond [i.e., an "extraterrestrial" invasion], whether real or promulgated [emphasis mine], that threatened our very existence. It is then that all peoples of the world will plead to deliver them from this evil. The one thing every man fears is the unknown. When presented with this scenario, individual rights will be willingly relinquished for the guarantee of their well-being granted to them by the World Government."


Dr. Henry Kissinger, Bilderberger Conference, Evians, France, 1991


"We are grateful to The Washington Post, The New York Times, Time Magazine and other great publications whose directors have attended our meetings and respected their promises of discretion for almost forty years. It would have been impossible for us to develop our plan for the world if we had been subject to the bright lights of publicity during those years. But, the work is now much more sophisticated and prepared to march towards a world government. The supranational sovereignty of an intellectual elite and world bankers is surely preferable to the national auto-determination practiced in past centuries."


David Rockefeller, founder of the Trilateral Commission, in an address to a meeting of The Trilateral Commission, in June, 1991.


"The idea was that those who direct the overall conspiracy could use the differences in those two so-called ideologies [Marxism / fascism, socialism, capitalism, etc.] to enable them [the Illuminati] to divide larger and larger portions of the human race into opposing camps so that they could be armed and then brainwashed into fighting and destroying each other."


Myron Fagan


"No one will enter the New World Order unless he or she will make a pledge to worship Lucifer. No one will enter the New Age unless he will take a Luciferian Initiation."


David Spangler, Director of Planetary Initiative, United Nations


"In March, 1915, the J.P. Morgan interests, the steel, shipbuilding, and powder interest, and their subsidiary organizations, got together 12 men high up in the newspaper world and employed them to select the most influential newspapers in the United States and sufficient number of them to control generally the policy of the daily press....They found it was only necessary to purchase the control of 25 of the greatest papers. "An agreement was reached; the policy if the papers was bought, to be paid for by the month; an editor was furnished for each paper to properly supervise and edit information regarding the questions of preparedness, militarism, financial policies, and other things of national and international nature considered vital to the interests of the purchasers."


U.S. Congressman Oscar Callaway, 1917


"The world can therefore seize the opportunity (Persian Gulf crisis) to fulfill the long-held promise of a New World Order where diverse nations are drawn together in common cause to achieve the universal aspirations of mankind."


George Herbert Walker Bush


"In the next century, nations as we know it will be obsolete; all states will recognize a single, global authority. National sovereignty wasn't such a great idea after all."


Strobe Talbot, Clinton's Deputy Secretary of State, as quoted in Time, July 20th, l992.


"We shall have world government whether or not you like it, by conquest or consent."
Statement by Council on Foreign Relations (CFR) member James Warburg to The Senate Foreign Relations Committee (FRC) on February 17th, l950


"The world is governed by very different personages from what is imagined by those who are not behind the scenes."


Benjamin Disraeli, first Prime Minister of England, in a novel he published in 1844 called Coningsby, the New Generation


"The governments of the present day have to deal not merely with other governments, with emperors, kings and ministers, but also with the secret societies which have everywhere their unscrupulous agents, and can at the last moment upset all the governments' plans. "
British Prime Minister Benjamin Disraeli, 1876


"Since I entered politics, I have chiefly had men's views confided to me privately. Some of the biggest men in the United States, in the Field of commerce and manufacture, are afraid of something. They know that there is a power somewhere so organized, so subtle, so watchful, so interlocked, so complete, so pervasive, that they better not speak above their breath when they speak in condemnation of it."


Woodrow Wilson, The New Freedom (1913)


"What is important is to dwell upon the increasing evidence of the existence of a secret conspiracy, throughout the world, for the destruction of organized government and the letting loose of evil."


Christian Science Monitor editorial, June 19th, l920


"The real menace of our republic is this invisible government which like a giant octopus sprawls its slimy length over city, state and nation. Like the octopus of real life, it operates under cover of a self created screen....At the head of this octopus are the Rockefeller Standard Oil interests and a small group of powerful banking houses generally referred to as international bankers. The little coterie of powerful international bankers virtually run the United States government for their own selfish purposes. They practically control both political parties."


New York City Mayor John F. Hylan, 1922


"From the days of Sparticus, Wieskhopf, Karl Marx, Trotsky, Rosa Luxemberg, and Emma Goldman, this world conspiracy has been steadily growing. This conspiracy played a definite recognizable role in the tragedy of the French revolution. It has been the mainspring of every subversive movement during the 19th century. And now at last this band of extraordinary personalities from the underworld of the great cities of Europe and America have gripped the Russian people by the hair of their head and have become the undisputed masters of that enormous empire."


Winston Churchill, stated to the London Press, in l922.


"We are at present working discreetly with all our might to wrest this mysterious force called sovereignty out of the clutches of the local nation states of the world."


Professor Arnold Toynbee, in a June l931 speech before the Institute for the Study of International Affairs in Copenhagen.


"The government of the Western nations, whether monarchical or republican, had passed into the invisible hands of a plutocracy, international in power and grasp. It was, I venture to suggest, this semi occult powerwhich....pushed the mass of the American people into the cauldron of World War I."


British military historian Major-General J.F.C. Fuller, l941


"For a long time I felt that FDR had developed many thoughts and ideas that were his own to benefit this country, the United States. But, he didn't. Most of his thoughts, his political ammunition, as it were, were carefully manufactured for him in advanced by the Council on Foreign Relations-One World Money group. Brilliantly, with great gusto, like a fine piece of artillery, he exploded that prepared "ammunition" in the middle of an unsuspecting target, the American people, and thus paid off and returned his internationalist political support.


"The UN is but a long-range, international banking apparatus clearly set up for financial and economic profit by a small group of powerful One-World revolutionaries, hungry for profit and power.


"The depression was the calculated 'shearing' of the public by the World Money powers, triggered by the planned sudden shortage of supply of call money in the New York money market....The One World Government leaders and their ever close bankers have now acquired full control of the money and credit machinery of the U.S. via the creation of the privately owned Federal Reserve Bank."


Curtis Dall, FDR's son-in-law as quoted in his book, My Exploited Father-in-Law
"The real truth of the matter is, as you and I know, that a financial element in the larger centers has owned the Government ever since the days of Andrew Jackson."


A letter written by FDR to Colonel House, November 21st, l933


"The real rulers in Washington are invisible, and exercise power from behind the scenes."
Supreme Court Justice Felix Frankfurter, 1952


"Fifty men have run America, and that's a high figure."- Joseph Kennedy, father of JFK, in the July 26th, l936 issue of The New York Times.


"Today the path of total dictatorship in the United States can be laid by strictly legal means, unseen and unheard by the Congress, the President, or the people. Outwardly we have a Constitutional government. We have operating within our government and political system, another body representing another form of government - a bureaucratic elite.


Senator William Jenner, 1954


"The case for government by elites is irrefutable"


Senator William Fulbright, Former chairman of the US Senate Foreign Relations Committee, stated at a 1963 symposium entitled: The Elite and the Electorate - Is Government by the People Possible?


"The Trilateral Commission is intended to be the vehicle for multinational consolidation of the commercial and banking interests by seizing control of the political government of the United States. The Trilateral Commission represents a skillful, coordinated effort to seize control and consolidate the four centers of power political, monetary, intellectual and ecclesiastical. What the Trilateral Commission intends is to create a worldwide economic power superior to the political governments of the nation states involved. As managers and creators of the system ,they will rule the future."


U.S. Senator Barry Goldwater in his l964 book: With No Apologies.


"The powers of financial capitalism had another far reaching aim, nothing less than to create a world system of financial control in private hands able to dominate the political system of each country and the economy of the world as a whole. This system was to be controlled in a feudalist fashion by the central banks of the world acting in concert, by secret agreements, arrived at in frequent private meetings and conferences. The apex of the system was the Bank for International Settlements in Basle, Switzerland, a private bank owned and controlled by the worlds' central banks which were themselves private corporations. The growth of financial capitalism made possible a centralization of world economic control and use of this power for the direct benefit of financiers and the indirect injury of all other economic groups."


Tragedy and Hope: A History of The World in Our Time (Macmillan Company, 1966,) Professor Carroll Quigley of Georgetown University, highly esteemed by his former student, William Jefferson Blythe Clinton. [Bill Clinton]" The Council on Foreign Relations is "the establishment." 


Not only does it have influence and power in key decision-making positions at the highest levels of government to apply pressure from above, but it also announces and uses individuals and groups to bring pressure from below, to justify the high level decisions for converting the U.S. from a sovereign Constitutional Republic into a servile member state of a one-world dictatorship."


Former Congressman John Rarick 1971


"The directors of the CFR (Council on Foreign Relations) make up a sort of Presidium for that part of the Establishment that guides our destiny as a nation."


The Christian Science Monitor, September 1, l961


"The New World Order will have to be built from the bottom up rather than from the top down...but in the end run around national sovereignty, eroding it piece by piece will accomplish much more than the old fashioned frontal assault."


CFR member Richard Gardner, writing in the April l974 issue of the CFR's journal, Foreign Affairs.


"The drive of the Rockefellers and their allies is to create a one-world government combining super capitalism and Communism under the same tent, all under their control.... Do I mean conspiracy? Yes I do. I am convinced there is such a plot, international in scope, generations old in planning, and incredibly evil in intent."


Congressman Larry P. McDonald, 1976, killed in the Korean Airlines 747 that was shot down by the Soviets


"The planning of UN can be traced to the 'secret steering committee' established by Secretary [of State Cordell] Hull in January 1943. All of the members of this secret committee, with the exception of Hull, a Tennessee politician, were members of the Council on Foreign Relations. They saw Hull regularly to plan, select, and guide the labors of the [State] Department's Advisory Committee. It was, in effect, the coordinating agency for all the State Department's postwar planning."


Professors Laurence H. Shoup and William Minter, writing in their study of the CFR, "Imperial Brain Trust: The CFR and United States Foreign Policy." (Monthly Review Press, 1977).


"The most powerful clique in these (CFR) groups have one objective in common: they want to bring about the surrender of the sovereignty and the national independence of the U.S. They want to end national boundaries and racial and ethnic loyalties supposedly to increase business and ensure world peace. What they strive for would inevitably lead to dictatorship and loss of freedoms by the people. The CFR was founded for "the purpose of promoting disarmament and submergence of U.S. sovereignty and national independence into an all-powerful one-world government."


Harpers, July l958


"The old world order changed when this war-storm broke. The old international order passed away as suddenly, as unexpectedly, and as completely as if it had been wiped out by a gigantic flood, by a great tempest, or by a volcanic eruption. The old world order died with the setting of that day's sun and a new world order is being born while I speak, with birth-pangs so terrible that it seems almost incredible that life could come out of such fearful suffering and such overwhelming sorrow."


Nicholas Murray Butler, in an address delivered before the Union League of Philadelphia, Nov. 27, 1915


"The peace conference has assembled. It will make the most momentous decisions in history, and upon these decisions will rest the stability of the new world order and the future peace of the world."


M. C. Alexander, Executive Secretary of the American Association for International Conciliation, in a subscription letter for the periodical International Conciliation (1919)


"If there are those who think we are to jump immediately into a new world order, actuated by complete understanding and brotherly love, they are doomed to disappointment. If we are ever to approach that time, it will be after patient and persistent effort of long duration. The present international situation of mistrust and fear can only be corrected by a formula of equal status, continuously applied, to every phase of international contacts, until the cobwebs of the old order are brushed out of the minds of the people of all lands."


Dr. Augustus O. Thomas, president of the World Federation of Education Associations (August 1927), quoted in the book International Understanding: Agencies Educating for a New World (1931)


"... when the struggle seems to be drifting definitely towards a world social democracy, there may still be very great delays and disappointments before it becomes an efficient and beneficent world system. Countless people ... will hate the new world order ... and will die protesting against it. When we attempt to evaluate its promise, we have to bear in mind the distress of a generation or so of malcontents, many of them quite gallant and graceful-looking people."


H. G. Wells, in his book entitled The New World Order (1939)


"The term Internationalism has been popularized in recent years to cover an interlocking financial, political, and economic world force for the purpose of establishing a World Government. Today Internationalism is heralded from pulpit and platform as a 'League of Nations' or a 'Federated Union' to which the United States must surrender a definite part of its National Sovereignty. The World Government plan is being advocated under such alluring names as the 'New International Order,' 'The New World Order,' 'World Union Now,' 'World Commonwealth of Nations,' 'World Community,' etc. All the terms have the same objective; however, the line of approach may be religious or political according to the taste or training of the individual."


Excerpt from A Memorial to be Addressed to the House of Bishops and the House of Clerical and Lay Deputies of the Protestant Episcopal Church in General Convention (October 1940)


"In the first public declaration on the Jewish question since the outbreak of the war, Arthur Greenwood, member without portfolio in the British War Cabinet, assured the Jews of the United States that when victory was achieved an effort would be made to found a new world order based on the ideals of 'justice and peace.'"


Excerpt from article entitled "New World Order Pledged to Jews," in The New York Times (October 1940)


"If totalitarianism wins this conflict, the world will be ruled by tyrants, and individuals will be slaves. If democracy wins, the nations of the earth will be united in a commonwealth of free peoples, and individuals, wherever found, will be the sovereign units of the new world order."


The Declaration of the Federation of the World, produced by the Congress on World Federation, adopted by the Legislatures of North Carolina (1941), New Jersey (1942), Pennsylvania (1943), and possibly other states.


"New World Order Needed for Peace: State Sovereignty Must Go, Declares Notre Dame Professor"
Title of article in The Tablet (Brooklyn) (March 1942)


"Undersecretary of State Sumner Welles tonight called for the early creation of an international organization of anti-Axis nations to control the world during the period between the armistice at the end of the present war and the setting up of a new world order on a permanent basis."
Text of article in The Philadelphia Inquirer (June 1942)


"The statement went on to say that the spiritual teachings of religion must become the foundation for the new world order and that national sovereignty must be subordinate to the higher moral law of God."


American Institute of Judaism, excerpt from article in The New York Times (December 1942)
"There are some plain common-sense considerations applicable to all these attempts at world planning. They can be briefly stated:


1. To talk of blueprints for the future or building a world order is, if properly understood, suggestive, but it is also dangerous. Societies grow far more truly than they are built. A constitution for a new world order is never like a blueprint for a skyscraper."


Norman Thomas, in his book What Is Our Destiny? (1944)


"He [John Foster Dulles] stated directly to me that he had every reason to believe that the Governor [Thomas E. Dewey of New York] accepts his point of view and that he is personally convinced that this is the policy that he would promote with great vigor if elected. So it is fair to say that on the first round the Sphinx of Albany has established himself as a prima facie champion of a strong and definite new world order."


Excerpt from article by Ralph W. Page in The Philadelphia Bulletin (May 1944)


"The United Nations, he told an audience at Harvard University, 'has not been able--nor can it be able--to shape a new world order which events so compellingly demand.' ... The new world order that will answer economic, military, and political problems, he said, 'urgently requires, I believe, that the United States take the leadership among all free peoples to make the underlying concepts and aspirations of national sovereignty truly meaningful through the federal approach.'"


Gov. Nelson Rockefeller of New York, in an article entitled "Rockefeller Bids Free Lands Unite: Calls at Harvard for Drive to Build New World Order" -- The New York Times (February 1962)
"The developing coherence of Asian regional thinking is reflected in a disposition to consider problems and loyalties in regional terms, and to evolve regional approaches to development needs and to the evolution of a new world order."


Richard Nixon, in Foreign Affairs (October 1967)


"He [President Nixon] spoke of the talks as a beginning, saying nothing more about the prospects for future contacts and merely reiterating the belief he brought to China that both nations share an interest in peace and building 'a new world order.'"


Excerpt from an article in The New York Times (February 1972)


"If instant world government, Charter review, and a greatly strengthened International Court do not provide the answers, what hope for progress is there? The answer will not satisfy those who seek simple solutions to complex problems, but it comes down essentially to this: The hope for the foreseeable lies, not in building up a few ambitious central institutions of universal membership and general jurisdiction as was envisaged at the end of the last war, but rather in the much more decentralized, disorderly and pragmatic process of inventing or adapting institutions of limited jurisdiction and selected membership to deal with specific problems on a case-by-case basis ... In short, the 'house of world order' will have to be built from the bottom up rather than from the top down. It will look like a great 'booming, buzzing confusion,' to use William James' famous description of reality, but an end run around national sovereignty, eroding it piece by piece, will accomplish much more than the old-fashioned frontal assault."


Richard N. Gardner, in Foreign Affairs (April 1974)


"The existing order is breaking down at a very rapid rate, and the main uncertainty is whether mankind can exert a positive role in shaping a new world order or is doomed to await collapse in a passive posture. We believe a new order will be born no later than early in the next century and that the death throes of the old and the birth pangs of the new will be a testing time for the human species."


Richard A. Falk, in an article entitled "Toward a New World Order: Modest Methods and Drastic Visions," in the book On the Creation of a Just World Order (1975)


"My country's history, Mr. President, tells us that it is possible to fashion unity while cherishing diversity, that common action is possible despite the variety of races, interests, and beliefs we see here in this chamber. Progress and peace and justice are attainable. So we say to all peoples and governments: Let us fashion together a new world order."


Henry Kissinger, in address before the General Assembly of the United Nations, October 1975)


"At the old Inter-American Office in the Commerce Building here in Roosevelt's time, as Assistant Secretary of State for Latin American Affairs under President Truman, as chief whip with Adlai Stevenson and Tom Finletter at the founding of the United Nations in San Francisco, Nelson Rockefeller was in the forefront of the struggle to establish not only an American system of political and economic security but a new world order."


Part of article in The New York Times (November 1975)


"A New World Order" -- Title of article on commencement address at the University of Pennsylvania by Hubert H. Humphrey, printed in the Pennsylvania Gazette (June 1977)
"Further global progress is now possible only through a quest for universal consensus in the movement towards a new world order."


Mikhail Gorbachev, in an address at the United Nations (December 1988)


"We believe we are creating the beginning of a new world order coming out of the collapse of the U.S.-Soviet antagonisms."


Brent Scowcroft (August 1990), quoted in The Washington Post (May 1991)


"We can see beyond the present shadows of war in the Middle East to a new world order where the strong work together to deter and stop aggression. This was precisely Franklin Roosevelt's and Winston Churchill's vision for peace for the post-war period."


Richard Gephardt, in The Wall Street Journal (September 1990)


"If we do not follow the dictates of our inner moral compass and stand up for human life, then his lawlessness will threaten the peace and democracy of the emerging new world order we now see, this long dreamed-of vision we've all worked toward for so long."


President George Bush (January 1991)


"But it became clear as time went on that in Mr. Bush's mind the New World Order was founded on a convergence of goals and interests between the U.S. and the Soviet Union, so strong and permanent that they would work as a team through the U.N. Security Council."


Excerpt from A. M. Rosenthal, in The New York Times (January 1991)


"I would support a Presidential candidate who pledged to take the following steps: ... At the end of the war in the Persian Gulf, press for a comprehensive Middle East settlement and for a 'new world order' based not on Pax Americana but on peace through law with a stronger U.N. and World Court."


George McGovern, in The New York Times (February 1991)


"... it's Bush's baby, even if he shares its popularization with Gorbachev. Forget the Hitler 'new order' root; F.D.R. used the phrase earlier."


William Safire, in The New York Times (February 1991)


"How I Learned to Love the New World Order" -- Article by Sen. Joseph R. Biden, Jr. in Tthe Wall Street Journal (April 1992)


How to Achieve The New World Order -- Title of book excerpt by Henry Kissinger, in Time magazine (March 1994)


"The Final Act of the Uruguay Round, marking the conclusion of the most ambitious trade negotiation of our century, will give birth - in Morocco - to the World Trade Organization, the third pillar of the New World Order, along with the United Nations and the International Monetary Fund."
Part of full-page advertisement by the government of Morocco in The New York Times (April 1994)
"New World Order: The Rise of the Region-State" -- Title of article by Kenichi Ohmae, political reform leader in Japan, in The Wall Street Journal (August 1994)


The "new world order that is in the making must focus on the creation of a world of democracy, peace and prosperity for all."


Nelson Mandela, in The Philadelphia Inquirer (October 1994)


The renewal of the non-proliferation treaty was described as important "for the welfare of the whole world and the new world order."


President Hosni Mubarak of Egypt, in The New York Times (April 1995)


"Alchemy for a New World Order" -- article by Stephen John Stedman in Foreign Affairs (May/June 1995)