Who Runs the World and Controls the Value of Assets?

By: Joan Veon | Sun, Nov 5, 2006
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At the January, 2006 World Economic Forum, five of the world's most important economists bewailed the fact that they had missed the rise in oil and in gold. By May, gold had risen to $730 oz. while energy had gone over $70 bbl.

When gold stayed at $600 oz. after falling from its high in May and the oil markets reached $75 bbl., their most recent high, I asked myself what would be used to change the commodity cycle. In May we saw a 10-15% drop in the price of gold and a correction in the price of oil. Throughout the summer the market recovered with oil reaching $75bbl. While gold stocks made up some of the loss, gold bullion did not. It stayed around $600 oz. Oil today is at $60 bbl. CNBC said on September 21, "With oil down 20%, the steep decline is even confounding the experts!" Is what we are seeing indeed confounding all the experts, or is it managed and manipulated to benefit a small group of powerful insiders?

Last week, we saw once again how Wall Street changes the minds of investors. For the last ten years or so, the gas guzzling SUV has been the premier choice of vehicles for most Americans. High oil prices put both General Motors and Ford at risk, as both companies announced drastic measures and big lay-offs last week. The Ford Company, in announcing they were not going to manufacture the SUV any longer said, "The North American business model does not work." In response to this information, a friend of mine, who just visited Italy, told me that she was surprised at the increase in the number of SUVs in Italy.

Why the huge drop in the price of oil? Wall Street would have us believe that it was the new oil reserve found in the Gulf, even though it will take 7-10 years to bring it on line. On 9/11, 2006 CNBC's Larry Kramer forecasted that oil will never go back to $75bbl, and that it is time to buy drug stocks. A little later that same day, we were told that the rise in gold and oil, which began 9/11/01, was over. The price of gas at the pump began to drop and, according to CNBC the next day, "Consumers are feeling better, more secure, and richer over lower energy." CNBC then went on to show SUV's and tell us, "Maybe it is time to buy an SUV."

The bottom line is that Wall Street and our central bank made a huge mistake by raising interest rates at the same time they increased the price of energy and they are back-peddling. What they found is that the power of the consumer to buy is gone. They are not able to put gas in their SUVs and they are not buying new ones. Furthermore, they cannot afford a new home which doubled in price as a result of 45 year low interest rates. In other words, there is a very high inventory of SUVs by all the auto dealers and home builders have at least one year of homes on the market.

Currently, gold is at $565 (9/21) and has lost over 22% in spite of the fact that the metal hit a 26 year high of $730 oz. in mid-May. Within the last two weeks, gold is down 10%, for a total drop of 20% year to date. According to one gold analyst, the central bankers began dumping gold on July 18 to keep it from rising as a result of the new Middle East War. They say that if gold had risen to $700 oz., oil would have exploded to $90bbl. Does any of this make sense? As a friend of mine would say, "What in the earth is going on?"

Perhaps, instead, we need to ask "Who is in control?" Are there natural forces that set the value of diamonds, gold, bonds, stocks, housing, farm land, etc., or are they manipulated to fill the coffers of powerful groups and individuals, as they skim off the top of the world's asset highs? This newsletter is not an excuse for the market but hopefully will educate you about forces behind the scene.

Having spent 25 years in this business and having covered 90 global meetings over the last 12-13 years, I have observed presidents, prime ministers, kings, princes, dukes, key officials from the various United Nations organizations, CEO's from some of the world's most powerful corporations, economists, and others. My research and observations have led me to determine that there are a number of powerful forces that rule the world, independent of government. In fact, government is getting weaker through privatization, as it spins off assets and sells them to corporations. Just recently, Norway overthrew their Democratic Socialist government so they can privatize more of their government assets! While I personally believe the British royal family rules the world, they do not rule it alone. There are at least three actors: central banks, the power and legacy of Cecil Rhodes, and the immense financial power of the biggest international banking family, the Rothschilds. When you consider all of these, you have a three-strand cord -- in other words, a strong cord that it will not break.

Central banks control the monetary system of the world and determine when business cycles are going to change simply by increasing or decreasing the money supply in the banking system. This small group of powerful insiders know when to sell high and buy low because they determine when the market cycle is going to change. What has just happened with oil and gold prices is an example of the power brokers who rule the world.

Cecil Rhodes was a British aristocrat who went down to South Africa to mine diamonds and ended up discovering gold. DeBeers Diamonds was the corporation that he founded as a result of the Anglo-Boer War. He also founded one of the largest gold companies in the world, Gold Fields.

Rhodes loved his mother country so much that he dedicated everything he had to setting up secret societies and college scholarships (Rhodes Scholars) for the furtherance of bringing the world under British rule. Rhodes said the British "are the finest race in the world and if the world were British, there would be no further wars." (Interestingly enough, he would have to wage war against all the independent nations of the world in order for "peace" to happen.) Working closely with Rhodes in helping to finance his quest to corner the diamond and gold markets and to carry out his final vision, was his banker, Nathaniel Rothschild of the British Rothschild banking family.

I make no claim to knowing everything. We are all entitled to our opinions. The following analysis is mine, based on years of extensive research both in regard to history and to the market. Consider:

When Rhodes died, he left a series of wills in which he wanted to set up a secret "society of the just", based on the Jesuit Society, to carry out his vision of a world united under British rule. Interestingly enough, he worked very closely with the British and French Rothschild families to finance the merger and consolidation of all the various South African diamond and gold concessions. One of his directives was to educate well selected men (and recently, women) from key colleges and universities from around the world, in the philosophy of bringing the world under British rule. These people are known as "Rhodes Scholars" and include former President Clinton and many others in government.

Regarding the power of central banks, if you will take a piece of paper money out of your wallet -- any denomination -- you will see these words, "Federal Reserve Note -- This note is legal tender for all debts, public and private." You might ask yourself why the paper money does not state that it is a note from the Treasury of the United States? If the Federal Reserve is not the Treasury, what is it? The Federal Reserve is a "central bank." To put it in every day terms, it is a private corporation which claims to provide a service to the people of the United States by providing the money used in our banking system.

When America was founded, there were great and serious debates over who should control the monetary system of our new country. While President Washington was chosen by unanimous vote, he appointed a number of constitutional advisers. Secretary of State Thomas Jefferson believed in the capacity of the common people for self-government. Secretary of the Treasury Alexander Hamilton, an aristocrat by birth and breeding and connected to the Tory element of the Revolution, believed our monetary system should be like that of England's with a private corporation -- central bank (Bank of England). Washington accepted the views of Hamilton and signed a bill into law creating our first central bank (The Coming Battle, M.W. Walbert, 1899, republished 1977, 3).

When Congress refused to renew the Bank's charter in 1811, the War of 1812 ensued, and in 1816 Congress re-chartered the bank with a capital stock of $35M. "From 1816 to 1828, it was the sole arbiter of the financial affairs of the nation, both public and private. Its power in politics was immense and it swayed elections as well" (Walbert, 11).

Senator Benton of Missouri thoroughly understood the means by which the bank had obtained its mastery over the commerce and industry of the nation and at the session of Congress presented a resolution in the Senate to the effect that the charter should not be renewed (Walbert,12). Senator Benton said,

The government itself ceases to be independent, it ceases to be safe when the national currency is at the will of a company [Bank of the United States, now Federal Reserve]. The government can undertake no great enterprise, neither war nor peace, without the consent and co- operation of that company; it cannot count its revenues six months ahead without referring to the action of that company -- its friendship or its enmity, its concurrence or opposition -- to see how far that company will permit money to be scares or to be plentiful; how far it will let the money system go on regularly or throw it into disorder; how far it will suit their interest or policy. People are not safe when such a company has such power. The temptation is too great, the opportunity too easy, to put up or put down prices, to make and break fortunes, to bring the whole community upon its knees to the Neptunes who preside over the flux and reflux of paper. All property is at their mercy, the price of real estate, of every growing crop, of every staple article in the market, is at their command. Stocks are their playthings -- their gambling theatre on which they gamble daily with as little secrecy and as little morality and far more mischief to fortunes than common gambles carry on their operations (emphasis added) (Walbert, 14).

When Andrew Jackson was elected President in 1828, he announced in his first message to Congress that he would not renew its charter. By that time, the Bank had great accumulations of reserves. Jackson advocated the passage of a law distributing these surplus revenues back to the states. He ended up vetoing the law Congress passed to re-charter the Bank. His reasons were salient and vital to future U.S. security. Jackson pointed out that the bank's stock, worth $8 million, was held by foreigners, chiefly in Britain, and that this was the most dangerous feature of the plan because a majority of shares of its stock might fall into alien hands, which, if we were involved in a war, could use its influence against the United States (Walbert, 17).

In 1881, President James A Garfield said,

Whoever controls the volume of money in our country is absolute master of all industry and commerce....and when you realize that the entire system is very easily controlled, one way or another, by a few powerful men at the top, you will not have to be told how periods of inflation and depression originate.

Needless to say, the move to re-establish control over the economy of the United States did not abate. Between 1840 and 1913, there was much done to try and re-establish a private corporation to control our monetary system.

In 1910 a group of men met in secret on Jekyll Island to plan the establishment of the Federal Reserve Bank of the United States. These men were members of Cecil Rhodes secret circles: Frank Vanderlip, Benjamin Strong, Paul Warburg, Henry P. Davison, Charles Norton, and Senator Nelson Aldrich.

Three years later in 1913, the central bankers took action. This time the people involved in this effort included some of the wealthiest people in America: Senator Nelson Aldrich (grandfather of David Rockefeller); Jacob Schiff and Paul Warburg of Kuhn, Loeb and Company, an international banking house; Piatt Andrew, Assistant Secretary of the Treasury; Henry P. Davidson, Senior Partner of J.P. Morgan & Company; Charles D. Norton, and Frank Vanderlip, President of National City Bank which today is CitiGroup. The passage of the Federal Reserve Act of 1913 was done through chicanery. Those in the Senate who favored the Act did not go home while those that were against it went home for Christmas. In a special session convened with quorum, the Act passed at 11:45 p.m. on December 24, 1913 -- an evil act of bondage for the American people.

Today, only five countries in the world are without a central bank: Iran, North Korea, Sudan, Cuba and Libya. All of these just happen to be on George Bush's "Evil of Axis" list.

With the passage of the Federal Reserve Act, our monetary system changed back to one of control by a private corporation and not the U.S. Treasury. Our currency is an IOU against the "Federal Reserve Note." Earlier in the day on December 24, 1913, Congressman Charles A. Lindberg, Jr. stated from the House floor: "This Act established the most gigantic trust on earth. When the President signs this bill, the invisible government by the Monetary Power will be legalized...The worst legislative crime of the ages is perpetrated by this banking bill." We should note that President Woodrow Wilson could have vetoed this bill like Andrew Jackson did, but he had been put into power by the same powers that passed the bill.

Since 1913, the Federal Reserve Act has been amended over 195 times. In 1914-1939, U.S. Federal Reserve Notes were backed by gold certificates to 40% of their value. This was reduced by 25% in 1945 and today it is questionable as to how much gold backing there may be.

There have been a number of empowerments given to all central banks, including the Federal Reserve, over the last ten years. In 1997, the Bank of England was given powers, like the Federal Reserve, which included the power to set interest rates without permission from government and to have a separate pool of foreign exchange reserves to INTERVENE in currency markets at their discretion. A Washington Times article has stated that their central bank minister, Gordon Brown, was "modeling the Bank of England much more closely after the U.S. Federal Reserve which can adjust rates even if that causes short-term political discomfort for the White House" (Washington Times-WT, 5/7/97,1). About the same time, the Bank of Japan was also given more power to determine monetary policy. Currently, the Bank of England, the Bundesbank and the European Central Bank all have the same power as the Federal Reserve to change interest rates without approval from government, first.

Also in 1997, it appears that there was a harmonization between Fed concerns and market direction. Starting then, every time Federal Reserve Chairman Alan Greenspan made any kind of comment about the market, it reacted. This continues. The market takes its direction from the Fed.

Then, in 1999 Congress passed HR1094, which amended the Federal Reserve Act to broaden the range of discount window loans (i.e. where banks borrow from the Fed overnight to maintain their capitalization) that could be used as collateral for Federal Reserve Notes. Assets eligible for collateral include: Treasury and federal agency securities, gold certificates, Special Drawing Rights, foreign currencies, and discount window loans made under Section 13 of the Federal Reserve Act. What we can see is that as our indebtedness grows, this private corporation wants more collateral for the loans it is making to the U.S. government. Furthermore, with the expansion and harmonization of central bank powers, the Fed has gained great power over the government. It is the Federal Reserve Chairman who TELLS Congress what he thinks and some of what he is doing, not the other way around.

Karl Marx said this about central banking, "By means of the banking system the distribution of capital is taken out of the hands of the private capitalists and usurers. But at the same time, banking and credit thus become the most effective means of driving capitalist production beyond its own boundaries, and one of the most potent instruments of crises and swindles" (Mayer, 39).

In the book The Founder: Cecil Rhodes and the Pursuit of Power by Robert Rotberg, a Rhodes Scholar, he says this about Cecil Rhodes:

He is the Founder -- of international diamond industry, of Rhodesia, and of the Scholarships; the Premier -- of the Cape; the Lawgiver -- of the Glen Grey act, of the Rhodesia's; the World States man -- the confidant of Queen Victoria and Kaiser Wilhelm, the colleague of Lord Salisbury, Lord Rosebery [a British Prime Minister who was related to Rothschilds], and other British political leaders; and the Visionary -- the giant genius who dreamed of reuniting the English-speaking worlds, linking the Cape to Cairo by rail and telegraph, and propagating a heady gospel of decent deeds, of noble ends absolving questionable means, and of the compelling pull of purposeful magnets of destiny (Rotberg, 3).

Born an aristocrat, by the time of his death in 1902 at 48, Cecil Rhodes and his siblings received rents from nearly 1600 properties of the family estate, which were purchased before his father died in 1794. Rhodes was ruthless, evil, vain, and cunning. He used whatever means to bring Southern Rhodesia (Zimbabwe) and Northern Rhodesia (Zambia) under British rule, as well as, give British protection to Botswana and Malawi. He almost took Mozambique from the Portuguese, and Zaire from the Belgians. He fought the Anglo-Boer War against the Afrikaners who lived in Natal and the interior highlands, where they set up two independent republics, the Orange Free State and the South African (Transvaal) Republic. There, gold was discovered and Rhodes used any and all means to gain control of these countries in order to gain control of the gold. It should be noted that back in Britain, supported by the British Foreign Office and sympathetic newspapers, the Brits were fed a steady diet of why it would be good for Britain to help the poor, backward Africans have peace.

Rhodes spent most of his time in South Africa looking to consolidate all of the diamond concessions under his power. There were the two DeBeers mines and the "Kimberley", which was divided into four mine with over 3,600 claims against it and owned by 98 companies and individuals. According to his biographer, "power" and "control" were central organizing principles for Rhodes. He used his own money, along with that of several others, including: Alfred Beit, who owned the most powerful South African financial house of Wernher, Beit & Co.; Lionel Phillips, who controlled H. Eckstein & Company, the largest South African mining syndicate; and the heavy financial backing of the British and French Rothschild banks. And so, by 1889 Rhodes was able to put the Kimberley diamond mines under his DeBeers Diamonds.

Rhodes waged war against any and all who got in his way of consolidating the diamond mines. Supported by the British government, which agreed to his Anglo-American vision, Rhodes waged a financial war against competitors Barney Barnato and the Standard Company, and Baring Gould and the Central Company. Rhodes said of the Central Company, "We must have the four mines and I will allow no foreign vulture to step in at the end and form a separate mine on the Stock exchange apart form us to get a flotation on our name" (Rotberg, 205). His method was to swallow up poorer ones and buy out richer ones.

After diamonds were found on the DeBeers farms, Rhodes mercenaries fought a vicious war against the Boers, "independent-minded farmers, ranchers, and merchants in southern Africa who lived by the Bible and rifle" (Institute for Historical Review). They were lead by President Paul Kruger. According to Mark Weber of the Institute for Historical Review, Jan Smuts, a 31 year old Boer general, and future South African prime minister, wrote that for every male Boer killed four Boer women and children were starved to death in British concentration camps. He described the war as follows:

Lord Kitchener has begun to carry out a policy in both Boer republics of unbelievable barbarism and gruesomeness which violates the most elementary principles of the international rules of war. Almost all farmsteads and villages in both republics have been burned down and destroyed. All crops have been destroyed. All livestock which has fallen into hands of the enemy has been killed or slaughtered (Rotberg).

The British government declared war after the Boers signed a treaty that recognized King Edward VII as their sovereign. The DeBeers corporate trust was, permitted to acquire any asset of any kind by any means. It could also own mines, water rights, houses, farms -- anything. It could trade in precious stones, all manner of miners, any kind of machinery, patents, inventions, and products in Africa or elsewhere. It could construct and operate canals, railways, gasworks, reservoirs, factories, and so on. It could engage in banking. It could even acquire 'tracts of country' in Africa or anywhere, together with rights transferred to it by indigenous rulers, and expend moneys for the pacification and administration of such estates (Rotberg, 209).

DeBeers was to be run by "Life Governors", which was a new and innovative concept at the time. They would control the operations of the concern and be able to operate in nearly all respects as if there were no other shareholders. The five Life Governors would be entitled to ¼ of all profits beyond the first 30% which would go to dividend recipients (Rotberg, 207). Once they had control, the Life Governors, basically, had another kind of East India Company operating, thus controlling 90% of the world diamonds. Without this cartel, the price of diamonds would be a fraction of the current market value -- as they are very plentiful. In fact sapphires and rubies have a higher per carat value, depending on the quality of the stone, than diamonds.

Regarding the Life Governorship and the ability of Rhodes to take DeBeers cash whenever he wanted to seize a new opportunity, both he and Beit gave up their life governorship in exchange for 80,000 shares of DeBeers, so that Rothschild and the others could manage the corporation (Rotberg, 648).

In the case of gold, Rhodes fomented war, whenever it was needed and was not afraid of exploiting the graciousness of African rulers to effectively take their countries from them, instead of just mining gold. Regarding gold found in the trans-Limpopo region, the trans-Zambezia, the copperlands of Katanga, and the borderlands of Lake Malawi, Rhodes betrayed the trust of the ruler of that region, Lobengula.

To help with the operation, Rhodes offered Rothschild a large share, gratis, in what he believed would eventually prove to be a great thing, as he subdued Lobengula's territory. Rhodes was able to control Zimbabwe by "moneys obtained by pyramiding shares backed by promises rather than assets. DeBeers and Gold Fields had solid stakes but the famous trust deeds were licenses for stock speculations" (Rotberg, 274). What Rhodes did before he took control of new lands is get a royal charter from the Queen to establish a mining corporation and, then, he raised monies by selling shares. The Rothschilds were always important shareholders in every scheme Rhodes floated.

While the following is based on strong research of Georgetown University professor, Dr. Carroll Quigley, because of the secrecy surrounding Rhodes dealings, it cannot be verified. Dr. Quigley named the following as being included as key players or Initiates with Rhodes: Nathan Rothschild, Baron Rothschild; Sir Harry Johnston; William T. Stead; Reginal Brett; Viscount Esher; and Alfred Milner, Viscount Milner; Alfred Beit; Archibald Primrose, Earl of Rosebery; Arthur James Balfour; Lionel Curtis; Viscount Waldorf Astor and Lady Astor. The Association of Helpers or the Inner Circle included: Philip Kerr, Marquess of Lothian; Lionel Curtis; Jan Smuts; and Arnold Toynbee; The Outer Circle included: Robert Cecil, Viscount Cecil of Chelwood and Isaiah Berlin (Quigley, The Anglo-American Establishment, 311-313).

After the death of Rhodes, Lord Rothschild, Alfred Beit, and Stead carried out the plans in his seven wills, which includes the Rhodes Scholarship program. According to Dr. Carroll Quigley who wrote from an insiders point of view in his book, Tragedy and Hope,

In 1891, Rhodes organized a secret society with members in a 'Circle of Initiates' and an outer circle known as the 'Association of Helpers' later organized as the Round Table organization. In 1909- 1913, they organized semi-secret groups known as Round Table Groups in the chief British dependencies and the United States. The Round Table Groups were semi-secret discussion and lobbying groups whose original purpose was to federate the English speaking world along lines laid down by Cecil Rhodes. In 1915, Round Table groups existed in England, South Africa, Canada, Australia, New Zealand, India, and the United States. Money for their activities originally came from Cecil Rhodes, J. P. Morgan, the Rockefeller and Whitney families, and associates of bankers Lazard Brothers and Morgan, Grenfell and Company. In New York, it was known as the Council on Foreign Relations and was a front for J.P. Morgan and Company, in association with the very small American Round Table Group.

Quigley also wrote,

There does exist and has existed for a generation, an international Anglophile network which operates to some extent in the way the Radical Right believes the Communists act. In fact, this network, which we may identify as the Round Table Groups, has no aversion to cooperating with the Communists, or any other groups, and frequently does so.

According to one expert on the dream of Cecil Rhodes', the U.S. Roundtable Group, known as the Council on Foreign Relations-CFR is the equivalent of the British Royal Institute for International Affairs, now known as Chatham House. Another group is the Pilgrims Society of which Queen Elizabeth II is the patron. There are other related groups. Many of the people who are members of one group are also members of other related groups. President Bill Clinton was our first Rhodes Scholar president and he, along with most of our presidents, and key officials, throughout the present and past administrations, are members of the CFR.

In several previous newsletters on oil, I discussed the role of President Nixon and Henry Kissinger's National Strategic Study Memorandum 200, as well as, the role of the Council on Foreign Relations with regard to keeping third world countries backward, so they would not need their own oil resources for industry or manufacturing plants. The old adage, "He who owns the gold, makes the rules" will always be true. If gold were not important or valuable, Rhodes would not have waged vicious wars over it. The same is true for diamonds. When will gold lose its shine? When diamonds lose theirs.

In describing the activities of the Rothschild family, author Fritz Springmeier wrote, "They have indebted kings, manipulated kingdoms, created wars, and molded the very shape of the international world." This powerful banking firm had humble beginnings. The man responsible for this global banking empire was born in the ghetto in Frankfurt-am-Main in 1743, and the son of a money lender. Mayer Amschel Bauer, who eventually took the name Rothschild (which means "red shield"), had five sons and five daughters.

After his father died, he was sent to the firm of Wolf Jakob Oppenheim[er], where he learned the coin business. In 1764, he became a dealer in rare coins and metals. Mayer Amschel envisioned a very closely connected family banking empire on five continents with each son in a different country. While he started the vision and set down very strict rules for his sons, it was the brilliance and cunning of his 3rd son, Nathan, who started NM Rothschild & Sons in England that paved the way for the firm to become the first, truly, international banking cartel.

Mayer Amschel's first coin transaction was with William, Hereditary Prince of Hesse-Kassel. By the end of the 17th century, he had established himself as Frankfurt's leading dealer, not only in coins and metals, but also in all kinds of antiques. By 1797, he was one of the richest Jews in Frankfurt and his business had moved into banking. According to English historian, E. C. Knuth,

It was Nathan, founder of the British house which plays so important a role in the affairs of the City (the financial and legal part of the City of London which is in itself a private corporation and known by the same name as the larger City of London) and consequently in the affairs of all the world. Professor Usher stated in his Pan-Germanism of 1913: "Russia, Turkey, Egypt, India, China, Japan and South America are probably owned, as far as any nation can be owned in London or Paris. The world itself, in fact, pays them tribute; it actually rises in the morning to earn its living by utilizing their capital, and occupies its days in making the money to pay them interest, which is to make them still wealthier" (Knuth, p.69).

Furthermore, it was the goal of poverty-stricken Mayer Amschel to have titles of nobility. However, because they were Jewish, they were shunned and restricted from society. This went back to the first king who booted the Jews out of his kingdom because they lent at usury, something that was not done in the Christian religion. However, as lending at interest became more widespread, especially because of the rise of central banks, their integration into society became accepted.

Amschel's benefactor, Prince William of Hesse-Kassel, made his money by selling mercenaries to the rulers of Europe, so they could wage war to enlarge their kingdoms. William's cousin, King George III was one of William's largest customers, helping him with his was against the Colonies. William was pure royalty. His grandfather was George II of England. He was a nephew of the King of Denmark and a brother-in-law to the King of Sweden. The income from selling mercenaries made William the richest ruler in Europe. From a very clever business standpoint, Mayer Amschel determined he was going to be his banker and gain his business. He did so by selling him rare coins at rock bottom prices. It worked and soon he was selling to other members of royalty.

According to Frederick Morton, Mayer was at the right place at the right time. Since the entire treasury of Denmark consisted of a deficit, and William had a huge surplus, the question was how to help his uncle, the king of Denmark? William could not do it, directly, because of delicate family ties. So he used his kingdom of Denmark as collateral to cut a deal, incognito, with an obscure bank, like the Rothchilds' (Morton, 36).

However, it was Napoleon who really enriched Mayer Amshel Bauer who by that time had changed his name to Rothschild. Napoleon was determined to rid Europe of Prince William and so, as the prince fled Napoleon, he entrusted Rothschild with $3M. His son, Nathan, who established banking interests in England, invested this money in "gold from the East India Company, knowing that it would be needed for Wellington's peninsula campaign." On the temporarily stolen money, N. Rothschild made four profits before he returned it to the Prince with interest: (1) on the sale of Wellington's bonds which he bought at 50 cents on the dollar and collected at par, (2) on the sale of gold to Wellington, (3) on its repurchase, and (4) then selling it to Portugal.

Furthermore, the Rothschilds funded both sides of the Napoleonic War with their various banks across Europe. Because of their unrivalled network of secret routes and fast couriers, including, pigeons, it was their intelligence system that allowed Nathan in England to provide Napoleon with important information on how the war with Wellington was going.

Nathan had a particular place (a favorite column) at the London Stock Exchange from which he would conduct business. From that position he could direct his traders, while non-affiliated traders could see if he was buying or selling, which usually set the trend for the day. After he learned that Wellington had won the war with Napoleon, Nathan stood at his post and without any expression on his face began to direct his traders to sell. This went on for most of the day. The non-affiliated traders determined that Wellington had lost, and they started to sell. Then, right before the market closed, when prices had hit rock bottom, Rothschild directed his agents to purchase all the bonds for pennies on the dollar. He had known more than they did. Biographer Frederick Morton wrote this about Nathan,

We cannot guess the number of hopes and savings wiped out by this engineered panic. We cannot estimate how many liveried servants, how many Watteaus and Rembrandts, how many thoroughbreds in his descendants' stables, the man by the pillar won that single day (Morton, 50).

Once it was clear that Britain won the war, these bonds increased in value higher than the face value, which provided Rothschild with a 20:1 return on his investment. This coup gave the Rothschild family complete control of the British economy, now the financial center of the world, following Napoleon's defeat. Nathan Rothschild, now in essence controller of the new central Bank of England, said,

I care not what puppet is placed upon the throne of England to rule the Empire on which the sun never sets. The man who controls Britain's money supply controls the British Empire, and I control the British money supply.

After Napoleon's defeat the leaders of Europe were meeting in Congress at Aix-la-Chapelle. Important financial arrangements were going to be discussed. The most important piece of business was the floating of a second installment of a French loan, designed to help the new government pay off its war indemnity. The first French loan went to various investment banking houses: the Ouvards of Paris, then Hopes (the ancient Anglo-Dutch banking house) and Barings of London, while the Rothschilds were shunned. The established banking houses would not give them any piece of the action. But, unbeknownst to them, the Rothschilds started buying the same bonds these banks were floating. This boosted the price of the bonds which encouraged the above referenced banking houses about the demand for these bonds. By the end of the week, the market was on the verge of an unexpected crash. Little did they suspect that the Rothschilds, whom they had snubbed, had all their banks buy the bonds and then sell them all at once after they had given them a false high! The Rothschild's made their abilities very clear and were permitted entry into this privileged club of finance.

According to Derek Wilson, in 1830 there were uprisings in Poland, Belgium, and the northern Italian states of Parma, Modena, and Romagna. The Rothschilds worked to maintain peace and stability. Armed intervention meant money. Money meant applying to the "five brothers of Europe" who began to attach political strings to their loans. Salomon was quite open: "These gentlemen should not count on us unless they decide to follow a line of prudence and moderation...Our goodwill does not yet extent to the point of putting clubs into the hands that would beat us." When the Rothschild's would not finance the Belgian revolutionaries, they relied on their negotiation skills. When they got into power, James Rothschild said of the change, "Now is the moment to make ourselves absolute masters of that country's finances. The first step will be to establish ourselves on an intimate footing with Belgium's new Finance Minister, to gain his confidence...and to take all the treasury bonds he may offer us" (Wilson, p.100).

On the other hand if you offended the Rothschilds, as the Spanish government did, the five brothers taught them a lesson by buying 1,800,000 pounds to speculate in Spanish government stock and engineered a dramatic fall in its value (Wilson, 101).

One of the reasons for the acumen of the Rothschild's is that, when you have banks in five countries, you need to have access to the news before anyone else. Therefore, early on, a courier service was set up. The Rothschild's attributed their ability to have the scoop before any king or ruler to their carrier pigeons which flew as far as Rio de Janeiro. As their business evolved down through the centuries, the Rothschilds found ways to carry information to all parts of the world. However, during the 18th and 19th centuries, they relied on horse and ships. As a result of the business they did between themselves, this information service developed to the point of being considered one of the first intelligence services. The Rothschild coaches would careen down highways, carrying cash, securities, litters, and news. Their news service was considered the best in Europe which prompted other countries to use it. As is the case, "the mails were not only an instrument for carrying letters but also for inspecting them (Morton, 92). One wrote, "If the breeze didn't carry Rothschild pigeons, it pushed Rothschild sails. 'The English ministry,' wrote Talleyrand to Louis Philippe's sister, 'is always informed of everything by Rothschild ten to twelve hours before the dispatches of the British ambassador arrive. This is necessarily so because the vessels used by the Rothschild couriers belong to that house take no passengers and sail in all weathers'" (Wilson, 92).

The Rothschild's were very instrumental in setting up the first Bank of the United States and financing the War of 1812. While the British were successful in burning the White House, thanks to Andrew Jackson, and in burning other important buildings and vital documents, they were routed out of America in the War of 1812. As president, Andrew Jackson vetoed the charter for the Bank of the U.S. According to Niall Ferguson in his book, The House of Rothschild's - Money's Prophets,

No sooner had the Rothschild's appeared on the American scene then Governor McNutt of Massachusetts, was denouncing 'Baron R' for having 'the blood of Judas and Shylock flow[ing] in his veins, and ...unit[ing] the qualities of both his countrymen. The first and second central banks of the United States employed the Rothschild's as agents.

The Rothschild's did bullion brokering and refining, accepting and discounting commercial bills, direct trading in commodities, foreign exchange dealing and arbitrage, as well as, insurance. Recall that it was the British Rothschild's who financed Cecil Rhodes and DeBeers Diamonds, becoming the biggest shareholders. Rhodes purchased the two farms from the DeBeers brothers (they were Boers), where diamonds were found for 6,300 pounds.

In 1905, the largest diamond in the world, weighing 530.20 carats, the Cullinan Diamond, was found. It was cut into 9 large stones which include the Cullinan I at 530.20 carats, which is now part of the British royal scepter. (I remember the first time I saw it in 1978, I could not believe it was real and asked the guard. He looked at this naive American and said in a very dry tone, "Yes Mum.") The Cullinan II is 317.40 carats and is in the British Imperial State Crown. The Cullinan III weighs 94.40 carats and is in Queen Mary's Crown. Both the Cullinan IV at 63.60 carats and the Cullinan V at 18.80 carats are worn by Queen Elizabeth II as pieces of jewelry. Note that 5 of the 9 Cullinan stones belong to the British royal family. What would you give the Lord Rothschild in return for these baubles?

It was the Rothschild's who financed the railroad system of Europe and the Suez Canal for Britain. Prime Minister Disraeli formed a very close relationship with the Rothschilds, even becoming "uncle" to their children. At one point Disraeli, to avoid government hassle and "seize the moment" took it upon himself to ask the Rothschilds for a 4M pound loan to finance the Suez Canal for the Queen. Their terms were 5% with a 2 ½% commission. In a letter to the Queen, Disraeli wrote, "Four millions sterling! And almost immediately. There was only one firm that could do it -- Rothschilds....the Khedive [canal] is yours, Madam" (Wilson, 236). Disraeli was elevated to the House of Lords, as the Earl of Beaconsfield.

In 1870, the Rothschilds formed the world's second largest oil producer, the Caspian and Black Sea Petroleum Company. In 1910 Henry Ditterding (Royal Dutch Petroleum) and Marcus Samuel (Shell Transport and Trading Company) began acquiring Caucasian oilfields. In 1912, they approached De Rothschild Freres, who had his own oil fields in the Caspian and Black Seas. The new company became known as Royal Dutch Shell in 1912, and is the second largest oil company in the world.

There is much to be said about the Rothschilds' cunning and unscrupulous ways, yet they have become the bankers to all the crown heads of Europe: Britain's King George IV, French King Louis XVIII, the Duke of York, the Duke of Clarence, Prince Leopold of Saxe-Coburg, the Duke of Kent who married Victoria of Saxe-Coburg from whom Queen Victoria was birthed, numerous members of the most important families of the Austro-Hungarian aristocracy, including the Thurn und Taxis family. According to Ferguson, "When Europe was restored, the Rothschild's established a network of private financial relationships with key public figures. The image of the Rothschilds as the centre of a web of 'corruption' would become a recurrent one in the years after 1830. But it was not, in reality, the 'bribes, loans, and other favors they bestowed on men like Metternich which made them the dominant force in international finance after 1815, it was the sheer scale -- and sophistication -- of their operations" (Ferguson, 162).

I have not begun to scratch the surface, concerning the amazing feats this family has achieved. The various biographies that I have read contain descriptions of their mansions, assets, wineries, tamed zebras, patronage of the arts and music, power, and political and financial achievements. From very little means, they are considered almost royal. They have their own crest of arms, as a result of the titles bestowed upon them by numerous royal families, and they are socially connected to all of the world's royal and non-royal elite. A number of Rothschilds were instrumental in populating Palestine back in the late 1890s, were involved with the first Zionist Congress in Basel in 1893, and with the founding of the State of Israel, as well as financing it. Edmond de Rothschild worked closely with Lord Balfour and Lloyd George in getting the Balfour Declaration to create the State of Israel.

The Rothschilds financed Britain's Anglo-Boer War for control of the vast diamond mines on Boer property. For that, Nathaniel Rothschild in 1885 was given the title of Lord Rothschild. He became the first Jewish peer in England. A. N. Knuth says this about their vast wealth,

The Annual Encyclopedia of 1868 records that Jacob (Paris House of Rothschild) had been established in Paris in 1812 with a capital of $200,000 by Mayer Amschel, and at that time of his death in 1868, 56 years later, his fortune was estimated at over $300M and his yearly income at $40M. In comparison it may be significant to note that there was at this time no fortune in all America that equaled only one year's income of Jacob (Baron James de Rothschild (70).

In short, the Rothschild's created modern banking, international banking, global bonds, and every other type of finance available. Today, they are busy "privatizing" the assets of the world and taking control of toll roads, water companies, electric companies, space, infrastructure, etc. It is the central banking system that controls the monetary system of the world, as well as, the investors in the central banks, including royalty such as the King and Queen of England and other international bankers, of which the Schiffs, Morgan's, Lazard Freres, and Rothschild's are part.

In 1852, Nathan began reining gold and silver for the Royal Mint and the Bank of England. Today, at the Bank of England, the Rothschild's fix the world's daily price of gold. Lastly, CitiGroup is a financial conglomerate, as well as, an international bank. It was instrumental in getting the Congress to repeal the Glass-Steagall Act, a 1933 law that put "firewalls" between banking and brokerage activities to avoid another 1929 crash. CitiGroup was instrumental in helping to facilitate the crash of the NASDAQ. The reason why your brokers do not know anything about gold (i.e. the only protection against a fiat paper money system) is that they work for brokerage companies that are either controlled by the Rothschilds or by others like the Rothschilds. Like most everyone else brokers do not know, or even care, as long as they have jobs.

Former Federal Reserve Chairman, Paul Volcker went to work for the Rothschild's, as chairman of the European investment banking firm, J. Rothschild, Wolfensohn and Co. from 1992 until 1995. It should be noted that the former World Bank President James A. Wolfensohn, sold his company to Kissinger and Co. when he became president of the World Bank in 1995.

San Jose Mercury reported in January 12, 1992 that the longtime chief executive of BankCal invited Edmond Rothschild to purchase the bank as a minority shareholder. Through manipulation, he carried out a series of actions, which dropped the value of BankCal's stock drastically. Meanwhile financial advisors and securities analysts convinced small stockholders to sell their BankCal stock at rock bottom prices for as little as $16 a share. Rothschild bought some at that price but had others buy for him at bottom prices, so that he had a majority of stock. He then sold the majority of shares to the Japanese and made a killing. Richard Freemon, a large stockholder, who had sold, sued Rothschild and the directors for cheating him on his stock. The $25M law suit was settled out of court. This has been their method of operation. Are the Rothschilds only ones? No, but they appear to be the chief power.

The reason for discussing the Rothschilds is that, apart from the Queen, I believe they control -- or have more control than the other powerful families on Planet Earth--the entire monetary system of the world. While there is some natural supply and demand in the market, I think we need to understand that most of the market changes are orchestrated to take from us--and transfer it to the international bankers. Rarely is there mention of them or do you see a photograph of them and their endeavors--that is because they own many newspapers.

A number of years ago, the DeBeers Diamond cartel came under the control of the Oppenheimers who also control Rhodes gold-mining company, the Anglo-American Corporation. Interestingly enough, it was the first Rothschild, Amschel Mayer Bauer, who went to work for the Oppenheimers in Frankfurt after his father died. Perhaps an old debt is being repaid.

Today the Rothschild's are worldwide, involved in investment banking, debt-related financing, restructuring, privatization, equity capital markets, oil and gas, mining, mergers and acquisitions, and private placements. Some of the deals include convertible preferred stock for the Chicago Climate Exchange; restructuring for France Telecom, Rio Tinto, Euro Disney, and Vivendi; debt advisory to Royal Ahold, Texas Pacific Group, and South African Airways; and privatization for Beijing Capital International Airport, the Government of Peru, the Government of Chile, the Government of Denmark, Air Portugal, and the Philippines National Transmission Company. Oil and Gas include acquisitions in Royal Dutch Petroleum, Petrochemical and gas stations by Sinopec, and Xstrata. Regarding mergers and acquisitions, out of the top investment banks by country Rothschilds rank #4 in France, #1 in the UK, #4 in Germany, #1 in Italy, #7 in Australia, #2 in Latin America and #9 in Spain. The Rothschilds have banks all over the world, providing a seamless connection worldwide. They operate three different banks in the UK, besides Frankfurt, Zurich, Moscow, and North America, as well as, banks in Brazil, Mexico, Australia, Asia, and South Africa.

In short, this newsletter is about power to control and power to determine value. This letter by no means exhausts the topic. It would take a sizeable book to discuss other powerful families, like the Rockefellers, the Schiffs, the Morgans, the DuPonts, the Astors, the Li's from China, and the British royal family, in addition to the Carnegies, Mellon's, and Vanderbilts.

In light of the rapid drop in the price of gold and oil, and to answer the question posed earlier of "Who controls value?" we see one name: Rothschild. When we want to discuss the value of gold -- it is set by the Rothschilds on a daily basis. When we want to discuss the value of oil -- they own one of the largest oil companies in the world. And, when we want to discuss interest rates, they are one of the controlling families that own the Federal Reserve Bank, with equally great power over the Bank of England.

We have just seen a major shift--or reversal--in two major trends that have been dominant since 2000: gold and oil. Is this temporary? At every turn we hear of more wars. There are those who say Bush is preparing for an October strike against Iran. If that is the case, the drop in oil and gold was an excuse to skim off the top of the world's assets (yours and mine). It appears that we are in a time of perpetual war for war is a transfer of wealth and an opportunity to finance both sides. There is nothing in this world that is not affected by the supreme power of a few major families worldwide. Furthermore, most of the major political players today are members of one of Rhode's secret societies: the Council on Foreign Relations, the Royal Institute for International Affairs, and the Pilgrims Society.

In conclusion, we get to participate in the "crumbs from the master's table." To quote King Solomon, the richest man in the world, "The thing that has been, it is that which shall be and that which is done is that which shall be done: and there is no new thing under the sun" (Eccl. 1:9).

Ferguson, Niall. The House of Rothschild Money's Prophets 1798-1848 (New York, 1998).
Knuth, E.C. The Empire of the City (Milwaukee, 1946).
Mayer, Martin. The Bankers (New York, 1974).
Morton, Frederic. The Rothschilds (Greenwich, 1961).
Quigley, Carroll. Tragedy and Hope (New York, 1966).
Quigley, Carroll. The Anglo-American Establishment (New York, 1981).
Rotberg, Robert I. THE FOUNDER Cecil Rhodes and the Pursuit of Power (New York, 1988).
Walbert, M.N. The Coming Battle (1899, republished 1977).
Wilson, Derek. Rothschild A Story of Wealth and Power (London, 1988).



Joan Veon

Author: Joan Veon

By Joan M. Veon, CFP®
Veon Financial Services, Inc.

Joan Veon is an independent international reporter and a businesswoman. In 1994, she covered her first United Nations conference with the idea that it would be the only one. Now, 13 years later and 90 other meetings, she has interviewed and queried the world's movers and shakers, presidents and prime ministers, key eminent economists, CEOs and leaders in the United Nations from the Secretary-General on down. She has covered economic (Bank for International Settlements, G7, World Economic Forum), trade (World Trade Organization), UN (mega-conferences and General Assembly), regional (Free Trade Areas of the Americas), military (NATO 50th), environmental, International Criminal Court, and many others. She has written two books: Prince Charles the Sustainable Prince and The United Nations' Global Straitjacket. Joan also writes two economic newsletters. Please visit: www.womensgroup.org.

Copyright © 2006 Joan Veon

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