Volcker Makes a Comeback as Part of Obama Brain Trust

Do you ever wonder why the same people always seem to be recycled into new positions of power? We now have a Presidential candidate who is seeking economic guidance from someone who led the institution that is systematically destroying our economy. Does anyone see a problem here?

jg – Oct 21, 2008
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OCTOBER 21, 2008

Volcker Makes a Comeback as Part of Obama Brain Trust
By MONICA LANGLEY

NEW YORK -- At 81 years old, former Federal Reserve chairman Paul Volcker is getting a second chance to shape his legacy with a presidential hopeful more than 30 years his junior.
Mr. Volcker has emerged as a top economic adviser to Sen. Barack Obama during a presidential campaign dominated by a global financial crisis. Their growing bond is paying dividends for each man.

Mr. Volcker delivers gravitas and credibility to Sen. Obama, people in the Obama camp say, as well as ideas and approaches to the economic crisis. "Volcker whispering in Obama's ear will make even Republicans comfortable, because he's a hero of the right and a supporter of a strong dollar," says John Tamny, a supply-side economist and Republican.

On Tuesday, Mr. Volcker is scheduled to appear on the campaign trail with Sen. Obama for the first time. At a round-table discussion with voters in Lake Worth, Fla., he'll "give his view on the state of the economy and the credit markets, and what needs to be done to fix them," says one campaign adviser. Longtime Fed watchers are amused that Mr. Volcker, known for his muttered statements during Fed meetings in the 1980s, will be in a political role on the stump.

For Mr. Volcker, a connection with Sen. Obama could help burnish his record as Fed chairman. The cigar-chomping central banker from 1979 to 1987, he received blame for driving up interest rates and tipping the U.S. into the deepest recession since the Great Depression. But Mr. Volcker is just as well known for taming the runaway inflation of that era. His stock has risen in recent months as his gruff warnings about the risks of deregulating the financial sector have come to look prescient. His successor's reputation, meanwhile, has come under a cloud. Alan Greenspan is under criticism that the low interest rates and deregulatory ideology of his tenure contributed to today's crisis.

With nearly every day presenting a fresh financial emergency, Sen. Obama has persuaded Mr. Volcker, who travels the globe for economic meetings and occasionally disappears on fly-fishing trips, to be at the ready; Mr. Volcker now keeps a cellphone on him at all times. And though he still doesn't own a computer (his assistant prints out emails for him), he's gotten used to Sen. Obama's rapid-fire messages sent from a BlackBerry device.

The Obama-Volcker relationship continues to evolve, campaign advisers say. At the start, Sen. Obama sought advice from Mr. Volcker and other outside voices through his economic adviser, Austan Goolsbee, a 39-year-old University of Chicago professor. But starting with the demise of Bear Stearns Cos. in March and continuing today, Sen. Obama speaks directly and often with Mr. Volcker about the intricacies of the financial crisis and possible solutions. They've become "collaborators," as one aide puts it.

For example, when the U.S. Treasury put forth a plan to set up a $700 billion rescue fund to buy up toxic assets, Sen. Obama quickly backed it on the advice of Mr. Volcker. Like other prominent economists, Mr. Volcker also advocated early on for the recapitalization of banks. On this advice, Sen. Obama proposed direct equity infusions in banks in his frequent conference calls with Treasury Secretary Henry Paulson. The idea, initially rejected by Mr. Paulson, was finally proposed last week by the administration, in an effort to get banks lending again to businesses and each other.

Sen. Obama's team of economic advisers includes two former Treasury secretaries, Robert Rubin and Lawrence Summers, and in some decisions, Mr. Volcker doesn't reign supreme. The candidate's latest proposal, for example, a $60 billion stimulus package, was initially fought by the former Fed chief on the grounds that Americans were already overspending. Moreover, he is unlikely to take a long-term role in any Obama administration.

Paul Volcker, delivering a lecture last week in Singapore, where he warned that the U.S. and Europe are facing recession from the financial crisis.

But for now, and going into the campaign's final weeks, aides say Sen. Obama is increasingly relying on Mr. Volcker. His staff now routinely reviews policy proposals and speeches with Mr. Volcker. Conference calls and face-to-face meetings of the Obama economic team are often reorganized to accommodate his schedule. When the team discusses the financial crisis, "The most important question to Obama: What does Paul Volcker think?" says Jason Furman, the campaign's economic-policy director.

The two men have developed an ease with each other, say aides, even as their styles appear to differ: Sen. Obama, who tends to use the Socratic method from his law-school training, examines all points of view and debates them. With a more formal and direct demeanor, Mr. Volcker likes to go straight to solutions.

In last week's final presidential debate, after Republican John McCain raised questions about his rival's ties, Sen. Obama said, "Let me tell you who I associate with. On economic policy, I associate with Warren Buffett and former Fed Chairman Paul Volcker...who have shaped my ideas and who will be surrounding me in the White House."

Some Democrats have speculated that, if elected, Sen. Obama could name Mr. Volcker to a post, possibly even as Treasury secretary, for a limited time. Banking and Wall Street executives are pushing the two campaigns to name a new secretary shortly after the election to reassure markets during the transition. The Obama campaign wouldn't comment on possible appointments.

"I just want to be helpful, because I believe Sen. Obama -- in his person, in his ideas and in his ability to understand and articulate both our needs and our hopes -- brings the strong and fresh leadership we need," Mr. Volcker said in an interview in New York. Mr. Volcker wouldn't provide details of his policy suggestions or his personal relationship with Sen. Obama.
After leaving the Fed 20 years ago, Mr. Volcker stopped smoking cigars, became a professor at Princeton University and spent more time fly-fishing. His corner office overlooking Fifth Avenue is filled with photographs and statues of fish, as well as a pillow inscribed: "Work is for people who don't know how to fish."

Following a stint as chairman of a boutique investment-banking firm, Mr. Volcker largely steered clear of joining any Wall Street companies. He set up his own office in Rockefeller Center, where he consults for companies and governments. He has served on a few corporate boards, such as UAL Corp., Prudential Insurance Co. of America and Nestlé SA. He also participated on commissions including the United Nations committee to investigate corruption in its oil-for-food program, and an inquiry launched by Swiss banks to determine which accounts belonged to Holocaust victims.

The bond between Messrs. Obama and Volcker started with a dinner invitation. In June 2007, Mark Gallogly, co-founder of Centerbridge Partners, a New York private-investment firm, and an early supporter of Sen. Obama, invited a dozen financial executives to meet the senator, including Goldman Sachs Group Inc. President Gary Cohn, Merrill Lynch & Co. President Greg Fleming and Mr. Volcker.

Along with the invitation, Mr. Volcker received from Mr. Gallogly a "briefing package" containing some speeches by Sen. Obama and news articles about him. Mr. Volcker also read the two books written by the senator.

In the private dining room at a Capitol Hill restaurant, Mr. Gallogly seated Mr. Volcker directly across from Sen. Obama, who at the time was considered a long shot to win the Democratic nomination over Sen. Hillary Clinton. Returning late that night on a flight to New York, Mr. Volcker told the group he was "genuinely impressed" with the Illinois senator.

That message was eventually passed along to Sen. Obama's advisers in New York, Michael Froman, a friend from Harvard Law School and a Citigroup Inc. executive, and Jenny Yeager, a fund-raiser. Ms. Yeager told Obama headquarters in Chicago that Mr. Volcker seemed "interested" in the candidate, but in two months no one had followed up with the ex-central banker for fund raising or anything else.

When Sen. Obama's economics adviser, Mr. Goolsbee, heard about Mr. Volcker's interest, he immediately got excited. "Paul Volcker is a legend! We don't want to use his contacts for money, we want to pick his brain," he recalls saying to a campaign operative.

Starting in late summer 2007, Mr. Goolsbee had regular discussions with Mr. Volcker. He incorporated Mr. Volcker's ideas, including his early concern that the housing downturn would snowball into a larger financial crisis, into Sen. Obama's policy positions. In a September 2007 speech at Nasdaq, Sen. Obama predicted that because of oversight lapses and abusive practices that cause the public to doubt financial results, "the markets will be ravaged by a crisis in confidence."

In early January 2008, when Sen. Clinton was pounding her rival over his lack of experience and stature, Sen. Obama phoned Mr. Volcker to ask for his endorsement. (At that time, billionaire investor Warren Buffett had refused to take sides between the Democratic contenders, saying he would support whoever got the nomination.) Mr. Volcker, a long-time Democrat who had mostly stayed out of partisan politics, agreed, and wrote out his statement in longhand.

The presidential candidate's first big economic address took place in March at Cooper Union in New York. Mr. Volcker's fingerprints were evident in the speech. The onetime central banker had long been vigilant about strong regulatory oversight; as Fed chairman he rejected big banks' attempts to repeal Depression-era laws to engage in more risky practices like investment banking. New financial institutions and instruments have since led to the repeal or relaxation of those laws, and Mr. Volcker told Sen. Obama that the U.S. regulatory structure must be strengthened and updated for the 21st century.

With Mr. Volcker sitting in the front row, Sen. Obama told the audience at Cooper Union that the current financial-regulatory framework must be "revamped." He faulted deregulation for the growing economic crisis. "Our free market was never meant to be a free license to take whatever you can get, however you can get it."

Once Sen. Obama became the expected Democratic nominee in June, and the economy became the central campaign issue, his chats with Mr. Volcker picked up. Mr. Goolsbee would get emails from Sen. Obama's traveling aide Reggie Love or his senior strategist David Axelrod with the message: "BO wants to call Volcker. What's his number again?"

In the past two months, financial crises have come one after another, picking up speed with the federal government's July effort to bolster big mortgage insurers Fannie Mae and Freddie Mac. As the contagion from the subprime mortgages and risky mortgage credit swaps threatened to topple other institutions, Sen. Obama asked for "emergency meetings" with his economic team, about a dozen advisers including Mr. Volcker and Mr. Buffett.

At the first group meeting in Washington in late July, Sen. Obama said he wanted to hear from each adviser on the worsening economic downturn and asked Mr. Volcker to go first. "The very health of the credit markets is at stake," Mr. Volcker said, according to one attendee. He urged strong action to restore confidence, particularly in the U.S. banking system.

When Sen. Obama raised the prospect of a package of spending and tax measures to "stimulate" the economy, Mr. Volcker disapproved. "Americans are spending beyond their means," he told the group. A stimulus package would delay the belt-tightening and savings needed, he added, proposing instead better regulation and assistance to banks.

Laura Tyson, economics adviser for President Bill Clinton and a professor at University of California, Berkeley, disagreed. "Americans can't help but spend beyond their means because they've had no income growth while their costs on gas and food have skyrocketed." She suggested spending money to rebuild infrastructure and create jobs. Even as some others agreed with Ms. Tyson, Mr. Volcker didn't budge. Sen. Obama delayed putting out a new stimulus package, but stressed that he wanted to find the "right balance" of possible assistance.

When the bailout bill became a political football and the markets seized up, Sen. Obama called the second in-person meeting of his financial team on Sept. 26 in Miami. Mr. Volcker initially said he would have to call in because he was leaving for Europe that day. Sen. Obama, according to campaign aides, called him with a personal plea.

The next morning, the senator seated Mr. Volcker beside him, an arrangement that was photographed by the media entourage covering the campaign. Mr. Volcker told the group he had changed his mind about an economic-stimulus package due to the global recession, but he couldn't stay to hear the discussion about the approach because he had to catch a plane to Europe.

In the past two weeks, with the stock market's drastic volatility and weak economic indicators, Sen. Obama presented his $60 billion package, which contains tax cuts and spending to provide public-works jobs to struggling Americans.

On Monday, Fed Chairman Ben Bernanke endorsed the idea of another stimulus package, giving a boost to Democratic lawmakers who are considering one. But congressional Republicans have so far shown little interest in a second spending bill.

Write to Monica Langley at monica.langley@wsj.com
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February 10, 2009

Here’s another article that relates to the article above. This is an article from the Loose Change website. I encourage you to research these things on your own.

jg

Obama’s Trilateral Commission Connections, Council on Foreign Relations Sellouts and Wartime Military/National Guard Draft Re-Instatement Issues that the Republicans Don’t Even Talk About

By Patrick Wood, EditorThe August Review, Global elite research center
January 30, 2009

[Ed. note: For clarity, members of the Trilateral Commission appear in bold type.]
As previously noted in Pawns of the Global Elite, Barack Obama was groomed for the presidency by key members of the Trilateral Commission. Most notably, it was Zbigniew Brzezinski, co-founder of the Trilateral Commission with David Rockefeller in 1973, who was Obama’s principal foreign policy adviser.

The pre-election attention is reminiscent of Brzezinski’s tutoring of Jimmy Carter prior to Carter’s landslide election in 1976.

For anyone who doubts the Commission’s continuing influence on Obama, consider that he has already appointed no less than eleven members of the Commission to top-level and key positions in his Administration.

According to official Trilateral Commission membership lists, there are only 87 members from the United States (the other 337 members are from other regions). Thus, in less than two weeks since his inauguration, Obama’s appointments encompass more than 12% of Commission’s entire U.S. membership.

Is this a mere coincidence or is it a continuation of dominance over the Executive Branch since 1976? (For important background, read The Trilateral Commission: Usurping Sovereignty.)

Secretary of Treasury, Tim Geithner
Ambassador to the United Nations, Susan Rice
National Security Advisor, Gen. James L. Jones
Deputy National Security Advisor, Thomas Donilon
Chairman, Economic Recovery Committee, Paul Volker
Director of National Intelligence, Admiral Dennis C. Blair
Assistant Secretary of State, Asia & Pacific, Kurt M. Campbell
Deputy Secretary of State, James Steinberg
State Department, Special Envoy, Richard Haass
State Department, Special Envoy, Dennis Ross
State Department, Special Envoy, Richard Holbrooke

There are many other incidental links to the Trilateral Commission, for instance,
Secretary of State Hillary Clinton is married to Commission member William Jefferson Clinton.
Geithner’s informal group of advisors include E. Gerald Corrigan, Paul Volker, Alan Greenspan and Peter G. Peterson, among others. His first job after college was with Henry Kissinger at Kissinger Associates.

Brent Scowcroft has been an unofficial advisor to Obama and was mentor to Defense Secretary Robert Gates.

Robert Zoelick is currently president of the World Bank. The World Bank Group is comprised of five agencies that make loans or guarantee credit to 177 member countries. Its stated aim is to help countries reduce poverty by making long-term loans to governments for large-scale projects such as dams or pipelines, or to back economic reform programs. However, World Bank loans have often had very negative effects on countries putting them in situations of precarious debt and setting conditions on which countries can receive loans, conditions which often have a devastating impact on the lives of citizensLaurence Summers, White House Economic Advisor, was mentored by former Treasury Secretary Robert Rubin during the Clinton administration.
There are many other such links, but these are enough for you to get the idea of what’s going on here.

Analyze the positions

Notice that five of the Trilateral appointees involve the State Department, where foreign policy is created and implemented. Hillary Clinton is certainly in line with these policies because her husband, Bill Clinton, is also a member.What is more important than economic recovery? Paul Volker is the answer.What is more important than national intelligence? Gen. James Jones, Thomas Donilon and Adm. Dennis Blair hold the top three positions.

What is more important than the Treasury and the saving of our financial system? Timothy Geithner says he has the answers.

The State Department is virtually dominated by Trilaterals: Kurt Campbell, James Steinberg, Richard Haass, Dennis Ross and Richard Holbrooke.

This leaves Susan Rice, Ambassador to the United Nations. The U.N. is the chosen instrument for ultimate global governance. Rice will help to subvert the U.S. into the U.N. umbrella of vassal states.

Conflict of interest

Since 1973, the Commission has met regularly in plenary sessions to discuss policy position papers developed by its members. Policies are debated in order to achieve consensuses. Respective members return to their own countries to implement policies consistent with those consensuses.

The original stated purpose of the Trilateral Commission was to create a “New International Economic Order.” Its current statement has morphed into fostering a “closer cooperation among these core democratic industrialized areas of the world with shared leadership responsibilities in the wider international system.” (See The Trilateral Commission web site)

U.S. Trilateral members implement policies determined by a majority of non-Americans that most often work against the best interests of the country.

“How,” you say?

Since the administration of Jimmy Carter, Trilaterals held these massively influential positions:

Six out of eight World Bank presidents, including the current appointee, Robert Zoelick
Eight out of ten U.S. Trade Representatives
President and/or Vice-President of every elected administration (except for Obama/Biden)
Seven out of twelve Secretaries of State
Nine out of twelve Secretaries of Defense

Is this sinking in? Are you grasping the enormity of it?

Endgame is at hand

For the Trilateral crowd, the game is about over. The recent reemergence of original members Henry Kissinger, Zbigniew Brzezinski, Brent Scowcroft and Paul Volker serves to reinforce the conclusion that the New International Economic Order is near.

The Trilateral Commission and its members have engineered the global economic, trade and financial system that is currently in a state of total chaos.

Does that mean that they have lost? Hardly.

In the article Chorus call for New World Order, they are using the crisis to destroy what remains of national Sovereignty, so that a New World Order can finally and permanently be put into place. Sovereignty is the principle that the state exercises absolute power over its territory, system of government, and population. Accordingly, the internal authority of the state supersedes that of all other bodies.

Conclusion on Obama’s Trilateral Commission Connections

The Obama presidency is a disingenuous fraud. He was elected by promising to bring change, yet from the start change was never envisioned. He was carefully groomed and financed by the Trilateral Commission and their friends.In short, Obama is merely the continuation of disastrous, non-American policies that have brought economic ruin upon us and the rest of the world. The Obama experience rivals that of Jimmy Carter, whose campaign slogan was “I will never lie to you.”

When the Democrat base finally realizes that it has been conned again (Bill Clinton and Al Gore were members), perhaps it will unleash a real political revolution that will oust Trilateral politicians, operatives and policies from the shores of our country.

If the reader is a Democrat, be aware that many Republicans and conservatives are still licking their wounds after finally realizing that George Bush and Dick Cheney worked the same con on them for a disastrous eight years of the same policies!

A who’s who guide to the people poised to shape Obama’s foreign policy.

U.S. policy is not about one individual, and no matter how much faith people place in President-elect Barack Obama, the policies he enacts will be fruit of a tree with many roots. Among them: his personal politics and views, the disastrous realities his administration will inherit, and, of course, unpredictable future crises. But the best immediate indicator of what an Obama administration might look like can be found in the people he surrounds himself with and who he appoints to his Cabinet. And, frankly, when it comes to foreign policy, it is not looking good.
Obama has a momentous opportunity to do what he repeatedly promised over the course of his campaign: bring actual change. But the more we learn about who Obama is considering for top positions in his administration, the more his inner circle resembles a staff reunion of President Bill Clinton’s White House. Although Obama brought some progressives on board early in his campaign, his foreign policy team is now dominated by the hawkish, old-guard Democrats of the 1990s. This has been particularly true since Hillary Clinton conceded defeat in the Democratic primary, freeing many of her top advisers to join Obama’s team.

“What happened to all this talk about change?” a member of the Clinton foreign policy team recently asked the Washington Post. “This isn’t lightly flavored with Clintons. This is all Clintons, all the time.”

Amid the euphoria over Obama’s election and the end of the Bush era, it is critical to recall what 1990s U.S. foreign policy actually looked like. Bill Clinton’s boiled down to a one-two punch from the hidden hand of the free market, backed up by the iron fist of U.S. militarism. Clinton took office and almost immediately bombed Iraq (ostensibly in retaliation for an alleged plot by Saddam Hussein to assassinate former President George H.W. Bush). He presided over a ruthless regime of economic sanctions that killed hundreds of thousands of Iraqis, and under the guise of the so-called No-Fly Zones in northern and southern Iraq, authorized the longest sustained U.S. bombing campaign since Vietnam.

Under Clinton, Yugoslavia was bombed and dismantled as part of what Noam Chomsky described as the “New Military Humanism.” Sudan and Afghanistan were attacked, Haiti was destabilized and “free trade” deals like the North America Free Trade Agreement and the General Agreement on Tariffs and Trade radically escalated the spread of corporate-dominated globalization that hurt U.S. workers and devastated developing countries. Clinton accelerated the militarization of the so-called War on Drugs in Central and Latin America and supported privatization of U.S. military operations, giving lucrative contracts to Halliburton and other war contractors. Meanwhile, U.S. weapons sales to countries like Turkey and Indonesia aided genocidal campaigns against the Kurds and the East Timorese.

The prospect of Obama’s foreign policy being, at least in part, an extension of the Clinton Doctrine is real. Even more disturbing, several of the individuals at the center of Obama’s transition and emerging foreign policy teams were top players in creating and implementing foreign policies that would pave the way for projects eventually carried out under the Bush/Cheney administration. With their assistance, Obama has already charted out several hawkish stances. Among them:

– His plan to escalate the war in Afghanistan;
– An Iraq plan that could turn into a downsized and rebranded occupation that keeps U.S. forces in Iraq for the foreseeable future;
– His labeling of Iran’s Revolutionary Guard as a “terrorist organization;”
– His pledge to use unilateral force inside of Pakistan to defend U.S. interests;
– His position, presented before the American Israel Public Affairs Committee (AIPAC), that Jerusalem “must remain undivided” — a remark that infuriated Palestinian officials and which he later attempted to reframe;
– His plan to continue the War on Drugs, a backdoor U.S. counterinsurgency campaign in Central and Latin America;
– His refusal to “rule out” using Blackwater and other armed private forces in U.S. war zones, despite previously introducing legislation to regulate these companies and bring them under U.S. law.

Obama did not arrive at these positions in a vacuum. They were carefully crafted in consultation with his foreign policy team. While the verdict is still out on a few people, many members of his inner foreign policy circle — including some who have received or are bound to receive Cabinet posts — supported the invasion and occupation of Iraq. Some promoted the myth that Saddam had weapons of mass destruction. A few have worked with the neoconservative Project for the New American Century, whose radical agenda was adopted by the Bush/Cheney administration. And most have proven track records of supporting or implementing militaristic, offensive U.S. foreign policy. “After a masterful campaign, Barack Obama seems headed toward some fateful mistakes as he assembles his administration by heeding the advice of Washington’s Democratic insider community, a collective group that represents little ‘change you can believe in,’” notes veteran journalist Robert Parry, the former Associated Press and Newsweek reporter who broke many of the stories in the Iran-Contra scandal in the 1980s.

Trilateral Plan to Corner World Gold Market?

Great article on gold price manipulation by the global elite (central banks):

Trilateral Plan to Corner World Gold Market?

Global Banking: The Bank for International Settlements

Here’s more information relating to the global monetary system – who controls it and how it works. This article discusses the Trilateral Commission, the new world order, the Bank for International Settlements and the global elite’s plan for a one world currency.

jg – June 14, 2010

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Global Banking: The Bank for International Settlements

http://www.augustreview.com/ 

http://www.augustreview.com/issues/banking/global_banking:_the_bank_for_international_settlements_200510147/

Who controls global monetary affairs? The BIS! Based in Basle, Switzerland, the BIS is central bank to central banks. The BIS has greater immunity than a sovereign nation, is accountable to no one, runs global monetary affairs and is privately owned. This is a must-read report to understand the globalization process.

By Patrick Wood, Editor

October 15, 2005

Preface

When David Rockefeller and Zbigniew Brzezinski founded the Trilateral Commission in 1973, the intent was to create a "New International Economic Order" (NIEO). To this end, they brought together 300 elite corporate, political and academic leaders from North America, Japan and Europe.

Few people believed us when we wrote about their nefarious plans back then. Now, we look back and clearly see that they did what they said they were going to do... globalism is upon us like an 8.6 magnitude earthquake.

The question is, "How did they do it?" Keep in mind, they had no public mandate from any country in the world. They didn't have the raw political muscle, especially in democratic countries where voting is allowed. They didn't have global dictatorial powers.

Indeed, how did they do it?

The answer is the Bank for International Settlements (BIS), self-described as the "central bank for central bankers", that controls the vast global banking system with the precision of a Swiss watch.

This report offers a concise summation of BIS history, structure and current activities.

Introduction

The famous currency expert Dr. Franz Pick once stated, "The destiny of the currency is, and always will be, the destiny of a nation."

With the advent of rampant globalization, this concept can certainly be given a global context as well: "The destiny of currencies are, and always will be, the destiny of the world."

Even though the BIS is the oldest international banking operation in the world, it is a low profile organization, shunning all publicity and notoriety. As a result, there is very little critical analysis written about this important financial organization. Further, much of what has been written about it is tainted by its own self-effacing literature.

The BIS can be compared to a stealth bomber. It flies high and fast, is undetected, has a small crew and carries a huge payload. By contrast, however, the bomber answers to a chain of command and must be refueled by outside sources. The BIS, as we shall see, is not accountable to any public authority and operates with complete autonomy and self-sufficiency.

Leading up to Founding

As we will see, the BIS was founded in 1930 during a very troubled time in history. Some knowledge of that history is critical to understanding why the BIS was created, and for whose benefit.

There are three figures that play prominently in the founding of the BIS: Charles G. Dawes, Owen D. Young and Hjalmar Schacht of Germany.

Charles G. Dawes was director of the U.S. Bureau of the Budget in 1921, and served on the Allied Reparations Commission starting in 1923. His latter work on "stabilizing Germany's economy" earned him the Nobel Peace Prize in 1925. After being elected Vice President under President Calvin Coolidge from 1925-1929, and appointed Ambassador to England in 1931, he resumed his personal banking career in 1932 as chairman of the board of the City National Bank and Trust in Chicago, where he remained until his death in 1951.

Owen D Young was an American industrialist. He founded RCA (Radio Corporation of America) in1919 and was its chairman until 1933. He also served as the chairman of General Electric from 1922 until 1939. In 1932, Young sought the democratic presidential nomination, but lost to Franklin Delano Roosevelt.

More on Hjalmar Schacht later.

In the aftermath of World War I and the impending collapse of the German economy and political structure, a plan was needed to rescue and restore Germany, which would also insulate other economies in Europe from being affected adversely.

The Versailles Treaty of 1919 (which officially ended WWI) had imposed a very heavy reparations burden on Germany, which required a repayment schedule of 132 billion gold marks per year. Most historians agree that the economic upheaval caused in Germany by the Versailles Treaty eventually led to Adolph Hitler's rise to power.

In 1924 the Allies appointed a committee of international bankers, led by Charles G. Dawes (and accompanied by J.P. Morgan agent, Owen Young), to develop a plan to get reparations payments back on track. Historian Carroll Quigley noted that the Dawes Plan was "largely a J.P. Morgan production"1 The plan called for $800 million in foreign loans to be arranged for Germany in order to rebuild its economy.

In 1924, Dawes was chairman of the Allied Committee of Experts, hence, the "Dawes Plan." He was replaced as chairman by Owen Young in 1929, with direct support by J.P. Morgan. The "Young Plan" of 1928 put more teeth into the Dawes Plan, which many viewed as a strategy to subvert virtually all German assets to back a huge mortgage held by the United States bankers.

Neither Dawes nor Young represented anything more than banking interests. After all, WWI was fought by governments using borrowed money made possible by the international banking community. The banks had a vested interest in having those loans repaid!

In 1924, the president of Reichsbank (Germany's central bank at that time) was Hjalmar Schacht. He had already had a prominent role in creating the Dawes Plan, along with German industrialist Fritz Thyssen and other prominent German bankers and industrialists.

The Young Plan was so odious to the Germans that many credit it as a precondition to Hitler's rise to power. Fritz Thyssen, a leading Nazi Industrialist, stated

"I turned to the National socialist party only after I became convinced that the fight against the Young Plan was unavoidable if complete collapse of Germany was to be prevented." 2

Some historians too quickly credit Owen Young as the idea-man for the Bank for International Settlements. It was actually Hjalmar Schacht who first proposed the idea3, which was then carried forward by the same group of international bankers who brought us the Dawes and Young Plans.

It is not necessary to jump to conclusions as to the intent of these elite bankers, so we will instead defer to the insight of renowned Georgetown historian, Carroll Quigley:

"The Power of financial capitalism had another far reaching plan, 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 feudalistic fashion by the central banks of the world acting in concert, by secret agreements arrived at in frequent meetings and conferences. The apex of the system was to be the Bank for International Settlements in Basle, Switzerland, a private bank owned and controlled by the world's central banks, which were themselves private corporations. Each central bank, in the hands of men like Montagu Norman of the Bank of England, Benjamin Strong of the New York Federal Reserve Bank, Charles Rist of the Bank of France, and Hjalmar Schacht of the Reichsbank, sought to dominate its government by its ability to control treasury loans, to manipulate foreign exchanges, to influence the level of economic activity in the country, and to influence co-operative politicians by subsequent rewards in the business world."4 [Bold emphasis added]

So here we have a brief sketch of what led up to the founding of the BIS. Now we can examine the nuts and bolts of how the BIS was actually put together.

The Hague Agreement of 1930

The formation of the BIS was agreed upon by its constituent central banks in the so-called Hague Agreement on January 20, 1930, and was in operation shortly thereafter. According to the Agreement,

The duly authorised representatives of the Governments of Germany, of Belgium, of France, of the United Kingdom of Great Britain and Northern Ireland, of Italy and of Japan of the one part; And the duly authorised representatives of the Government of the Swiss Confederation of the other part Assembled at the Hague Conference in the month of January, 1930, have agreed on the following:

Article 1. Switzerland undertakes to grant to the Bank for International Settlements, without delay, the following Constituent Charter having force of law: not to abrogate this Charter, not to amend or add to it, and not to sanction amendments to the Statutes of the Bank referred to in Paragraph 4 of the Charter otherwise than in agreement with the other signatory Governments.5

As we will see, German reparation payments (or lack thereof) had little to do with the founding of the BIS, although this is the weak explanation given since its founding. Of course, Germany would make a single payment to the BIS, which in turn would deposit the funds into the respective central bank accounts of the nations to whom payments were due. (It would be the subject of another paper to show the shallowness of this operation: Money and gold were shuffled around, but the net amount that Germany actually paid was very small.)

The original founding documents of the BIS have little to say about Germany, however, and we can look directly to the BIS itself to see its original purpose:

“The objects of the Bank are: to promote the co-operation of central banks and to provide additional facilities for international operations; and to act as trustees or agent in regard to international financial settlements entrusted to it under agreements with the parties concerned.” 6

Virtually every in-print reference to the BIS, including their own documents, consistently refer to it as "the central banker's central bank."

So, the BIS was established by an international charter and was headquartered in Basle, Switzerland.

BIS Ownership

According to James C. Baker, pro-BIS author of The Bank for International Settlements: Evolution and Evaluation, "The BIS was formed with funding by the central banks of six nations, Belgium, France, Germany, Italy, Japan, and the United Kingdom. In addition, three private international banks from the United States also assisted in financing the establishment of the BIS."7

Each nation's central bank subscribed to 16,000 shares. The U.S. central bank, the Federal Reserve, did not join the BIS, but the three U.S. banks that participated got 16,000 shares each. Thus, U.S. representation at the BIS was three times that of any other nation. Who were these private banks? Not surprisingly, they were J.P. Morgan & Company, First National Bank of New York and First National Bank of Chicago.

On January 8, 2001, an Extraordinary General Meeting of the BIS approved a proposal that restricted ownership of BIS shares to central banks. Some 13.7% of all shares were in private hands at that time, and the repurchase was accomplished with a cash outlay of $724,956,050. The price of $10,000 per share was over twice the book value of $4,850.

It is not certain what the repurchase accomplished. The BIS claimed that it was to correct a conflict of interest between private shareholders and BIS goals, but it offered no specifics. It was not a voting issue, however, because private owners were not allowed to vote their shares.8

Sovereignty and Secrecy

It is not surprising that the BIS, its offices, employees, directors and members share an incredible immunity from virtually all regulation, scrutiny and accountability.

In 1931, central bankers and their constituents were fed up with government meddling in world financial affairs. Politicians were viewed mostly with contempt, unless it was one of their own who was the politician. Thus, the BIS offered them a once-and-for-all opportunity to set up the "apex" the way they really wanted it -- private. They demanded these conditions and got what they demanded.

A quick summary of their immunity, explained further below, includes

• diplomatic immunity for persons and what they carry with them (i.e., diplomatic pouches)

• no taxation on any transactions, including salaries paid to employees

• embassy-type immunity for all buildings and/or offices operated by the BIS

• no oversight or knowledge of operations by any government authority

• freedom from immigration restrictions

• freedom to encrypt any and all communications of any sort

• freedom from any legal jurisdiction9

Further, members of the BIS board of directors (for instance, Alan Greenspan) are individually granted special benefits:

• “immunity from arrest or imprisonment and immunity from seizure of their personal baggage, save in flagrant cases of criminal offence;”

• “inviolability of all papers and documents;”

• “immunity from jurisdiction, even after their mission has been accomplished, for acts carried out in the discharge of their duties, including words spoken and writings;”

• “exemption for themselves, their spouses and children from any immigration restrictions, from any formalities concerning the registration of aliens and from any obligations relating to national service in Switzerland ;”

• “the right to use codes in official communications or to receive or send documents or correspondence by means of couriers or diplomatic bags.”10

Lastly, all remaining officials and employees of the BIS have the following immunities:

• “immunity from jurisdiction for acts accomplished in the discharge of their duties, including words spoken and writings, even after such persons have ceased to be Officials of the Bank;”[bold emphasis added]

• “exemption from all Federal, cantonal and communal taxes on salaries, fees and allowances paid to them by the Bank…”

• exempt from Swiss national obligations, freedom for spouses and family members from immigration restrictions, transfer assets and properties – including internationally – with the same degree of benefit as Officials of other international organizations.11

Of course, a corporate charter can say anything it wants to say and still be subject to outside authorities. Nevertheless, these were the immunities practiced and enjoyed from 1930 onward. On February 10, 1987, a more formal acknowledgement called the "Headquarters Agreement" was executed between the BIS and the Swiss Federal Council and basically clarified and reiterated what we already knew:

Article 2

Inviolability

• The buildings or parts of buildings and surrounding land which, whoever may be the owner thereof, are used for the purposes of the Bank shall be inviolable. No agent of the Swiss public authorities may enter therein without the express consent of the Bank. Only the President, the General Manager of the Bank, or their duly authorised representative shall be competent to waive such inviolability.

• The archives of the Bank and, in general, all documents and any data media belonging to the Bank or in its possession, shall be inviolable at all times and in all places.

• The Bank shall exercise supervision of and police power over its premises.

Article 4

Immunity from jurisdiction and execution

• The Bank shall enjoy immunity from criminal and administrative jurisdiction, save to the extent that such immunity is formally waived in individual cases by the President, the General Manager of the Bank, or their duly authorised representative.

• The assets of the Bank may be subject to measures of compulsory execution for enforcing monetary claims. On the other hand, all deposits entrusted to the Bank, all claims against the Bank and the shares issued by the Bank shall, without the prior agreement of the Bank, be immune from seizure or other measures of compulsory execution and sequestration, particularly of attachment within the meaning of Swiss law. 12 [bold emphasis added]

As you can see, the BIS, its directors and employees (past and present) can do virtually anything and everything they want, with complete secrecy, immunity and with no one looking over their shoulders. It was truly a banker's dream come true, and it paved the international freeway for the rampant financial globalism that we see manifest today.

Day-to-Day Operations

Acting as a central bank, the BIS has sweeping powers to do anything for its own account or for the account of its member central banks. It is like a two-way power-of-attorney – any party can act as agent for any other party.

Article 21 of the original BIS statutes define day-to-day operations:

1. buying and selling of gold coin or bullion for its own account or for the account of central banks;

2. holding gold for its own account under reserve in central banks;

3. accepting the supervision of gold for the account of central banks;

4. making advances to or borrowing from central banks against gold, bills of exchange, and other short-term obligations of prime liquidity or other approved securities;

5. discounting, rediscounting, purchasing, or selling with or without its endorsement bills of exchange, checks, and other short-term obligations of prime liquidity;

6. buying and selling foreign exchange for its own account or for the account of central banks;

7. buying and selling negotiable securities other than shares for its own account or for the account of central banks;

8. discounting for central banks bills taken from their portfolio and rediscounting with central banks bills taken from its own portfolio;

9. opening and maintaining current or deposit accounts with central banks;

10. accepting deposits from central banks on current or deposit account;

11. accepting deposits in connection with trustee agreements that may be made between the BIS and governments in connection with international settlements.;

12. accepting such other deposits that, as in the opinion of the Board of the BIS, come within the scope of the BIS’ functions.13

The BIS also may

1. act as agent or correspondent for any central bank

2. arrange with any central bank for the latter to act as its agent or correspondent;

3. enter into agreements to act as trustee or agent in connection with international settlements, provided that such agreements will not encroach on the obligations of the BIS toward any third parties.14

Why is "agency" an important issue? Because any member of the network can obscure transactions from onlookers. For instance, if Brown Brothers, Harriman wanted to transfer money to a company in Nazi Germany during WWII (which was not "politically correct" at that time), they would first transfer the funds to the BIS thus putting the transaction under the cloak of secrecy and immunity that is enjoyed by the BIS but not by Brown Brothers, Harriman. (Such laundering of Wall Street money was painstakingly noted in Wall Street and the Rise of Hitler, by Antony C. Sutton.)

There are a few things that the BIS cannot do. For instance, it does not accept deposits from, or provide financial services to, private individuals or corporate entities. It is also not permitted to make advances to governments or open current accounts in their name.15 These restrictions are easily understood when one considers that each central bank has an exclusive franchise to loan money to their respective government. For instance, the U.S. Federal Reserve does not loan money to the government of Canada. In like manner, central banks do not loan money directly to the private or corporate clients of their member banks.

How Decisions are Made

The board of directors consist of the heads of certain member central banks. Currently, these are:

• Nout H E M Wellink, Amsterdam (Chairman of the Board of Directors)

• Hans Tietmeyer, Frankfurt am Main (Vice-Chairman)

• Axel Weber, Frankfurt am Main

• Vincenzo Desario, Rome

• Antonio Fazio, Rome

• David Dodge, Ottawa

• Toshihiko Fukui, Tokyo

• Timothy F Geithner, New York

• Alan Greenspan, Washington

• Lord George, London

• Hervé Hannoun, Paris

• Christian Noyer, Paris

• Lars Heikensten, Stockholm

• Mervyn King, London

• Guy Quaden, Brussels

• Jean-Pierre Roth, Zürich

• Alfons Vicomte Verplaetse, Brussels16

Of these, five members ( Canada, Japan, the Netherlands, Sweden and Switzerland) are currently elected by the shareholders. The majority of directors are "ex officio," meaning they are permanent and are automatically a part of any sub-committee.

The combined board meets at least six times per year, in secret, and is briefed by BIS management on financial operations of the bank. Global monetary policy is discussed and set at these meetings.

It was reported in 1983 that there is an inner club of the half dozen central bankers who are more or less in the same monetary boat: Germany, U.S., Switzerland, Italy, Japan and England.17 The existence of an inner club is neither surprising nor substantive: the whole BIS operation is 100% secret anyway. It is not likely that members of the inner club have significantly different beliefs or agendas apart from the BIS as a whole.

How the BIS works with the IMF and the World Bank

The interoperation between the three entities is understandably confusing to most people, so a little clarification will help.

The International Monetary Fund (IMF) interacts with governments whereas the BIS interacts only with other central banks. The IMF loans money to national governments, and often these countries are in some kind of fiscal or monetary crisis. Furthermore, the IMF raises money by receiving "quota" contributions from its 184 member countries. Even though the member countries may borrow money to make their quota contributions, it is, in reality, all tax-payer money.18

The World Bank also lends money and has 184 member countries. Within the World Bank are two separate entities, the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA). The IBRD focuses on middle income and credit-worthy poor countries, while the IDA focuses on the poorest of nations. In funding itself, the World Bank borrows money by direct lending from banks and by floating bond issues, and then loans this money through IBRD and IDA to troubled countries.19

The BIS, as central bank to the other central banks, facilitates the movement of money. They are well-known for issuing "bridge loans" to central banks in countries where IMF or World Bank money is pledged but has not yet been delivered. These bridge loans are then repaid by the respective governments when they receive the funds that had been promised by the IMF or World Bank.20

The IMF is the BIS' "ace in the hole" when monetary crisis hits. The 1998 Brazil currency crisis was caused by that country's inability to pay inordinate accumulated interest on loans made over a protracted period of time. These loans were extended by banks like Citigroup, J.P. Morgan Chase and FleetBoston, and they stood to lose a huge amount of money.

The IMF, along with the World Bank and the U.S., bailed out Brazil with a $41.5 billion package that saved Brazil, its currency and, not incidentally, certain private banks.

Congressman Bernard Sanders (I-VT), ranking member of the International Monetary Policy and Trade Subcommittee, blew the whistle on this money laundry operation. Sander's entire congressional press release is worth reading:

IMF Bailout for Brazil is Windfall to Banks, Disaster for US Taxpayers Says Sanders

BURLINGTON, VERMONT - August 15 - Congressman Bernard Sanders (I-VT), the Ranking Member of the International Monetary Policy and Trade Subcommittee, today called for an immediate Congressional investigation of the recent $30 billion International Monetary Fund (IMF) bailout of Brazil.

Sanders, who is strongly opposed to the bailout and considers it corporate welfare, wants Congress to find out why U.S. taxpayers are being asked to provide billions of dollars to Brazil and how much of this money will be funneled to U.S. banks such as Citigroup, FleetBoston and J.P. Morgan Chase. These banks have about $25.6 billion in outstanding loans to Brazilian borrowers. U.S. taxpayers currently fund the IMF through a $37 billion line of credit.

Sanders said, "At a time when we have a $6 trillion national debt, a growing federal deficit, and an increasing number of unmet social needs for our veterans, seniors, and children, it is unacceptable that billions of U.S. taxpayer dollars are being sent to the IMF to bailout Brazil."

"This money is not going to significantly help the poor people of that country. The real winners in this situation are the large, profitable U.S. banks such as Citigroup that have made billions of dollars in risky investments in Brazil and now want to make sure their investments are repaid. This bailout represents an egregious form of corporate welfare that must be put to an end. Interestingly, these banks have made substantial campaign contributions to both political parties," the Congressman added.

Sanders noted that the neo-liberal policies of the IMF developed in the 1980's pushing countries towards unfettered free trade, privatization, and slashing social safety nets has been a disaster for Latin America and has contributed to increased global poverty throughout the world. At the same time that Latin America countries such as Brazil and Argentina followed these neo-liberal dictates imposed by the IMF, from 1980-2000, per capita income in Latin America grew at only one-tenth the rate of the previous two decades.

Sanders continued, "The policies of the IMF over the past 20 years advocating unfettered free trade, privatizing industry, deregulation and slashing government investments in health, education, and pensions has been a complete failure for low income and middle class families in the developing world and in the United States . Clearly, these policies have only helped corporations in their constant search for the cheapest labor and weakest environmental regulations. Congress must work on a new global policy that protects workers, increases living standards and improves the environment."

One can surmise that a financial circle exists where the World Bank helps nations get into debt, then when these countries can't pay their massive loans, the IMF bails them out with taxpayer money -- and in the middle stands the BIS, collecting fees as the money travels back and forth like the ocean tide, while assuring everyone that all is well.

BIS dumps gold-backed Swiss Francs for SDR's

On March 10, 2003, the BIS abandoned the Swiss gold franc as the bank's unit of account since 1930, and replaced it with the SDR.

SDR stands for Special Drawing Rights and is a unit of currency originally created by the IMF. According to Baker,

"The SDR is an international reserve asset, created by the IMF in 1969 to supplement the existing official reserves of member countries. SDR's are allocated to member countries in proportion to their IMF quotas. The SDR also serves as the unit of account of the IMF and some other international organizations. Its value is based on a basket of key international currencies."21

This "basket" currently consists of the euro, Japanese yen, pound sterling and the U.S. dollar.

The BIS abandonment of the 1930 gold Swiss franc removed all restraint from the creation of paper money in the world. In other words, gold backs no national currency, leaving the central banks a wide-open field to create money as they alone see fit. Remember, that almost all the central banks in the world are privately-held entities, with an exclusive franchise to arrange loans for their respective host countries.

Regional and Global Currencies: SDR's, Euros and Ameros

There is no doubt that the BIS is moving the world toward regional currencies and ultimately, a global currency. The global currency could well be an evolution of the SDR, and may explain why the BIS recently adopted the SDR as its primary reserve currency.

The Brandt Equation, 21st Century Blueprint for the New Global Economy notes, for instance, that

Since the SDR is the world's only means of meeting international payments that has been authorized through international contract, "The SDR therefore represents a clear first step towards a stable and permanent international currency"22 [bold emphasis added]

As to regional currencies, the BIS has already been hugely successful in launching the euro in Europe. Armed with new technical and social know-how, the BIS' next logical step is to focus on America and Asia.

For instance, according to BIS Papers No. 17, Regional currency areas and the use of foreign currencies,

"Canada, Mexico and the United States are members of the trade group NAFTA. Given the high proportion of Canada and Mexico’s trade with the United States, a NAFTA dollar or “Amero” has been proposed by some Canadian academics such as Grubel (1999). See also Beine and Coulombe (2002) and Robson and Laidler (2002)."23

Assuming that NAFTA permanently identifies Canada, the U.S. and Mexico as one trading block, then North America will look like the European Union and the Amero will function like the Euro. All of the work put into the SDR would be perfectly preserved by simply substituting the Amero for the U.S. dollar when they choose to bring the Amero to ascendancy over the dollar.

For those American readers who do not grasp the significance of the adoption of the euro by European Union countries, consider how one American globalist describes it.

C. Fred Bergsten is a prominent and core Trilateral Commission member and head of the Institute for International Economics. On January 3, 1999, Bergsten wrote in the Washington Post

"The adoption of a common currency is by far the boldest chapter of European integration. Money traditionally has been an integral element of national sovereignty ...and the decision by Germany and France to give up their mark and franc ...represents the most dramatic voluntary surrender of sovereignty in recorded history. The European Central Bank that will manage the euro is a truly supranational institution".24 [bold emphasis added]

Bergsten will have to rephrase this when the U.S. gives up the dollar for the amero -- that will become the most dramatic voluntary surrender of sovereignty in recorded history!

Conclusions

Our credo is "Follow the money, follow the power." This report has endeavored to follow the money. We find that:

• The BIS is central bank to all major central banks in the world

• It is privately owned by central banks themselves, most of whom are also private

• It was founded under questionable circumstances by questionable people

• It is accountable to no one, especially government bodies

• It operates in complete secrecy and is inviolable

• Movement of money is obscured and hidden when routed through the BIS

• The BIS is targeting regional currency blocks and ultimately, a global currency

• It has been hugely successful at building the New International Economic Order, along with its attendant initiatives on global governance.

As to "follow the power," another paper will more fully explore the influence of power that the BIS exerts over other banks, nations and governments. For your own consideration in the meantime, Proverbs 22:7 provides a useful compass: "The rich rule over the poor, and the borrower is servant to the lender".

NOTE: Carl Teichrib, World Research Library Senior Fellow, contributed to this report.

Footnotes

1. Quigley, Tragedy & Hope, (MacMillan, 1966), p.308

2. Edgar B Nixon, ec., Franklin D. Roosevelt and Foreign Affairs, Volume III (Cambridge: Balknap Press, 1969) p. 456

3. Sutton, Wall Street and the Rise of Hitler, (GSC & Associates, 2002) p. 26

4. Quigley, op cit, p. 324

5. BIS web site, Extracts from the Hague Convention, http://www.bis.org/about/conv-ex.htm

6. BIS, Statutes of the Bank for International Settlements Article 3 [as if January 1930, text as amended on March 10,2003], Basic Texts (Basle, August 2003), p. 7-8

7. Baker, The Bank for International Settlements: Evolution and Evaluation, (Quorum, 2002), p. 20

8. ibid., p. 16

9. BIS, Protocol Regarding the Immunities of the Bank for International Settlements, Basic Texts, (Basle, August 2003), p. 33

10. ibid, Article 12, p.43.

11. ibid, p. 44

12. BIS, Extracts from the Headquarters Agreement, http://www.bis.org/about/hq-ex.htm

13. Baker, op cit, p. 26-27

14. ibid, p. 27

15. BIS, The BIS in profile, Bank for International Settlements flyer, June, 2005

16. BIS, Board of Directors, www.bis.org/about/board.htm

17. Epstein, Ruling the World of Money, Harper's Magazine, 1983

18. IMF web site, http://www.imf.org

19. World Bank web site. http://www.WorldBank.org

20. Baker, op cit, p. 141-142

21. IMF web site, http://www.imf.org/external/np/exr/facts/sdr.htm

22. The Brandt Equation: 21 st Century Blueprint for the New Global Economy. The Brandt Proposals – A Report Card: Money and Finances. See http://www.brandt21forum.info/1ckMoney.htm.

23. BIS, Regional currency areas and the use of foreign currencies, BIS Papers No. 17, September, 2003

24. Washington Post, The Euro Could Be Good for Trans-Atlantic Relations, C. Fred Bergsten, January 3, 1999

Books for Purchase:

Quigley, Tragedy & Hope, (MacMillan, 1966)

Sutton, Wall Street and the Rise of Hitler, (GSC & Associates, 2002)

Baker, The Bank for International Settlements: Evolution and Evaluation, (Quorum, 2002)

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

____________________________

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)