I’m sorry, I forgot; I’m just some brain-dead, fluoridated, prescription-drugged and debt-strapped moo whose only reason for an IRS and Social Security tracked existence is to be out working to produce a revenue stream for the aristocrats and the rest of the world. - One Rather Upset Monster

A Nation Of Sheep Will Beget A Government Of Wolves - Edward R. Murrow

One of the penalties for refusing to participate in politics is that you end up being governed by your inferiors. - Plato

America’s Economic Collapse: An Intricate Web of Money, Power and Political Agendas, Part 4

Written on January 10, 2009 by LogisticsMonster in Politics
11 Comments

Did you really think this series was going to end at Part 3?  Y’all know what happens when the Monster starts digging, and from the type of visitors I have been seeing lately, I must be hitting a very large nerve….go here for the first 3 parts, (and a very special welcome to Lehman Bros.)

At the end of Part 3, I stated:

In the next article in the series, (if you can stand it), we will explore James P. Warburg, the Council On Foreign Relations, the Brookings Institute, Institute For Policy Studies, The United Nations, and whatever else rears it’s ugly head while I am researching.

Please pay attention to those names and the new ones that come up in this article;  the Ford Foundation, Rockefeller Foundation, and Carnegie Foundation just to name a few.

(Author’s note: sections highlighted in blue bold type are my emphasis.  Also remember that I did say we would start out easy with just the videos.  Take your time getting through this material because you need to understand the web)

********

Paul Warburg was instrumental and is the cornerstone of what we see happening today in the American and World economies.  I would like to refresh your memories before we go on.  This info is from Wikipedia and I am only using it because it is actually accurate and concise. (I checked)

Warburg was born in Hamburg, Germany, to a successful Jewish banking family. His parents were Moritz and Charlotte (Esther) Warburg. After graduating from the Realgymnasium in Hamburg in 1886 he entered the employ of Simon Hauer, a Hamburg importer and exporter, to learn the fundamentals of business practice. He similarly worked for Samuel Montague & Company, bankers, in London in 1889-90, the Banque Russe pour le Commerce Etranger in Paris in 1890-91.[1][2]

In 1891 Warburg entered the office of the family banking firm of M.M. Warburg & Company, which had been founded in 1798 by his great-grandfather. He interrupted work there to undertake a world tour during the winter of 1891-92. Warburg was admitted to a partnership in the family firm in 1895.[3]

On October 1, 1895, Warburg was married in New York City to Nina J. Loeb, daughter of Solomon Loeb, founder of the New York investment firm of Kuhn, Loeb & Company. The Warbugs were the parents of a son, James Paul Warburg, and a daughter, Dr. Bettina Warburg.[4]

Although a major factor in German finance, after frequent business trips to New York Warburg settled there in 1902 as a partner in Kuhn, Loeb & Company where the influential Jacob Schiff, his wife’s brother-in-law, was senior partner. Warburg remained a partner in the family firm in Hamburg, but he became a naturalized American citizen in 1911.

A german banker marrying into the New York banking community, and in 1910 he was instrumental in the Jekyll Island meeting to craft the Federal Reserve Act, being a huge proponent of central banks.  Do you remember our Founding Father, Thomas Jefferson, being completely against that particular idea?

In 1913, the Federal Reserve Act is passed creating the Federal Reserve System of banks all over the country, but with all the power still remaining at the “national level” located in New York City.  BTW, is not Timothy Geithner, the current Chairman of the NY Fed going to become the Secretary of the Treasury after Hank Paulson who was the CEO of Goldman Sachs (another NY Bank) leaves office?  How much do you know about our friend Hank or his Chicago connections?  Thought so….

Goldman Sachs

He joined Goldman Sachs in 1974, working in the firm’s Chicago office under James P. Gorter. He became a partner in 1982. From 1983 until 1988, Paulson led the Investment Banking group for the Midwest Region, and became managing partner of the Chicago office in 1988. From 1990 to November 1994, he was co-head of Investment Banking, then, Chief Operating Officer from December 1994 to June 1998;[8] eventually succeeding Jon Corzine (now Governor of New Jersey) as its chief executive. His compensation package, according to reports, was US $37 million in 2005, and US $16.4 million projected for 2006.[9] His net worth has been estimated at over US $700 million.[9] Paulson has personally built close relations with China during his career. In July 2008 it was reported by The Daily Telegraph that: “Treasury Secretary Hank Paulson has intimate relations with the Chinese elite, dating from his days at Goldman Sachs when he visited the country more than 70 times.”[10]

In 2004, at the request of the major Wall Street investment houses, including Goldman Sachs, then headed by Paulson, the U.S. Securities and Exchange Commission agreed unanimously to release the major investment houses from the net capital rule, the requirement that their brokerages hold reserve capital that limited their leverage and risk exposure. The complaint that was put forth by the investment banks was of increasingly onerous regulatory requirements — in this case, not U.S. regulator oversight, but European Union regulation of the foreign operations of US investment groups. In the immediate lead-up to the decision, EU regulators also acceded to US pressure, and agreed not to scrutinize foreign firms’ reserve holdings if the SEC agreed to do so instead. The 1999 Gramm-Leach-Bliley Act, however, put the parent holding company of each of the big American brokerages beyond SEC oversight. In order for the agreement to go ahead, the investment banks lobbied for a decision that would allow “voluntary” inspection of their parent and subsidiary holdings by the SEC.

During this repeal of the net capital rule, SEC Chairman William H. Donaldson agreed to the establishment of a risk management office that would monitor signs of future problems. This office was eventually dismantled by Chairman Christopher Cox, after discussions with Paulson. According to the New York Times, “While other financial regulatory agencies criticized a blueprint by Mr. Paulson, the Treasury secretary, that proposed to reduce their stature — and that of the S.E.C. — Mr. Cox did not challenge the plan, leaving it to three former Democratic and Republican commission chairmen to complain that the blueprint would neuter the agency.”[11] In late September 2008, Chairman Cox and the other Commissioners agreed to end the 2004 program of voluntary regulation.

…snip

U.S. Secretary of the Treasury

Paulson was nominated by U.S. President George W. Bush to succeed John Snow as the Treasury Secretary on May 30, 2006.[12] On June 28, 2006, he was confirmed by the United States Senate to serve in the position.[13] Paulson was officially sworn in at a ceremony held at the Treasury Department on the morning of July 10, 2006.

Paulson’s three immediate predecessors as CEO of Goldman Sachs — Jon Corzine, Stephen Friedman, and Robert Rubin — each left the company to serve in government: Corzine as a U.S. Senator (later Governor of New Jersey), Friedman as chairman of the National Economic CouncilPresident’s Foreign Intelligence Advisory Board) under President George W. Bush, and Rubin as both chairman of the NEC and later Treasury Secretary under President Bill Clinton.[14]

Paulson identified the wide gap between the richest and poorest Americans as an issue on his list of the country’s four major long-term economic issues to be addressed, highlighting the issue in one of his first public appearances as Secretary of Treasury.[15]

Paulson conceded that chances were slim for agreeing on a method to reform Social Security financing, but said he would keep trying to find bipartisan support for it.[16]

He also helped to create the Hope Now Alliance to help struggling homeowners during the subprime mortgage crisis.[17]

Anybody want to leave a comment and tell me how you feel about that info?  Or these interesting connections that Timothy Geithner has:

Early life and education

Geithner was born in Brooklyn, New York.[2] His father, Peter F. Geithner, is the director of the Asia program at the Ford Foundation in New York. During the early 1980s, Peter Geithner oversaw the Ford Foundation’s microfinance programs in Indonesia being developed by Ann Dunham-Soetoro, mother of President-elect Barack Obama, and they met in person at least once.[3] Timothy Geithner’s mother, Deborah Moore Geithner, is a pianist and piano teacher in Larchmont, New York where his parents currently reside. Geithner’s maternal grandfather, Charles F. Moore, was an adviser to President Dwight D. Eisenhower and served as a vice president of Ford Motor Company.[4] Geithner spent most of his childhood living outside the United States, including present-day Zimbabwe, India and Thailand, where he completed high school at International School Bangkok.[2] He then attended Dartmouth College, graduating with a A.B. in government and Asian studies in 1983.[5] He earned an M.A. in international economics and East Asian studies from Johns Hopkins University’s School of Advanced International Studies in 1985.[5][6] He has studied Chinese[5] and Japanese.[7]

…snip

Career

After completing his studies, Geithner worked for Kissinger and Associates in Washington, D.C., for three years and then joined the International Affairs division of the U.S. Treasury Department in 1988. He went on to serve as an attache at the US Embassy in Tokyo. He was deputy assistant secretary for international monetary and financial policy (1995–1996), senior deputy assistant secretary for international affairs (1996-1997), assistant secretary for international affairs (1997–1998).[6]

He was Under Secretary of the Treasury for International Affairs (1998–2001) under Treasury Secretaries Robert Rubin and Lawrence Summers.[6] Summers was his mentor,[10][11] but other sources call him a Rubin protégé.[11][12][13]

In 2002 he left the Treasury to join the Council on Foreign Relations as a Senior Fellow in the International Economics department.[8] At the International Monetary Fund he was director of the Policy Development and Review Department (2001-2003).[6]

In October 2003, he was named president of the Federal Reserve Bank of New York.[14] His salary in 2007 was $398,200.[15] Once at the New York Fed, he became Vice Chairman of the Federal Open Market Committee component. In 2006, he also became a member of the Washington-based financial advisory body, the Group of Thirty.[16]

In March 2008, he arranged the rescue and sale of Bear Stearns[10][17] and later, in the same year, he is believed to have played a pivotal role in both the decision to bail out AIG as well as the government decision not to save Lehman Brothers from bankruptcy.[18] As a Treasury official, he helped manage multiple international crises of the 1990s[12] in Brazil, Mexico, Indonesia, South Korea and Thailand.[13]

On November 24, 2008, President-elect Barack Obama announced his intention to nominate Geithner to be Treasury Secretary.[19][20]

Geithner believes, along with Henry Paulson, that the Treasury Department needs new authority to experiment with responses to the financial crisis of 2008.[10] Paulson has described Geithner as “[a] very unusually talented young man…[who] understands government and understands markets.”[17]

I am sure if I went digging even deeper, I would find Hank Paulson’s name on the list of members of the Council on Foreign Relations.

Paul Warburg started the Council on Foreign Relations in 1921.

In 1919 he founded and became first chairman of the American Acceptance Council. He organized and became the first chairman of the International Acceptance Bank of New York in 1921. International Acceptance was acquired by the Bank of the Manhattan Company in 1929, with Warburg becoming chairman of the combined organization.

He became a director of the Council on Foreign Relations at its founding in 1921, remaining on the board until his death. From 1921 to 1926 Warburg was a member of the advisory council of Federal Reserve Board, serving as president of the advisory council in 1924-26. He was also a trustee of the Institute of Economics, founded in 1922; when it was merged into the Brookings Institution in 1927, he became a trustee of the latter, serving until his death.[8][9]

Keep this in mind as we move on; James Paul Warburg, Paul Warburg’s son stated while speaking before the US Senate on February 17, 1950.  As an aside, James Warburg started the Institute For Policy Studies.

“We shall have World Government, whether or not we like it.
The only question is whether World Government will be achieved by conquest or consent.”

The CFR, Institute of Economics, Brookings and The Federal Reserve System tied together and Paul Warburg is behind all of them.

The Council on Foreign Relations (CFR) is an American nonpartisan foreign policy membership organization founded in 1921 and based at 58 East 68th Street (at Park Avenue) in New York City, with an additional office in Washington, D.C. Some international journalists and American paleoconservatives believe it to be the most powerful private organization to influence United States foreign policy.[1][2][3][4][5] It publishes the bi-monthly journal Foreign Affairs. It has an extensive website, featuring links to its think tank, The David Rockefeller Studies Program, other programs and projects, publications, history, biographies of notable directors and other board members, corporate members, and press releases.[6]

This is what the Council’s spin is:

The Council’s mission is promoting understanding of foreign policy and the United States’ role in the world. Meetings are convened at which government officials, global leaders and prominent members debate major foreign-policy issues. It has a think tank that employs prominent scholars in international affairs and it commissions subsequent books and reports. A central aim of the Council, it states, is to “find and nurture the next generation of foreign policy leaders.” It established “Independent Task Forces” in 1995, which encourage policy debate. Comprising experts with diverse backgrounds and expertise, these task forces seek consensus in making policy recommendations on critical issues; to date, the Council has convened more than fifty times.[6]

The internal think tank is The David Rockefeller Studies Program, which grants fellowships and whose programs are described as being integral to the goal of contributing to the ongoing debate on foreign policy; fellows in this program research and write on the most important challenges facing the United States and the world.[7]

At the outset of the organization, founding member Elihu Root said the group’s mission, epitomized in its journal Foreign Affairs, should be to “guide” American public opinion. In the early 1970s, the CFR changed the mission, saying that it wished instead to “inform” public opinion.[8]

This is what we are finding out:

The Invisible Government:

The Birth of the CFR (1920s)

Wilson himself, when campaigning for re-election in 1916, had unequivocally supported our traditional foreign policy: his one major promise to the American people was that he would keep them out of the European war.

Yet, even while making this promise, Wilson was yielding to a pressure he was never able to withstand: the influence of Colonel Edward M. House, Wilson’s all-powerful adviser. According to House’s own papers and the historical studies of Wilson’s ardent admirers (see, for example, the “Intimate Papers of Colonel House”, edited by Charles Seymour, published in 1926 by Houghton Mifflin; and, “The Crisis of the Old Order” by Arthur M. Schlesinger, Jr., published 1957 by Houghton Mifflin), House created Wilson’s domestic and foreign policies, selected most of Wilson’s cabinet and other major appointees, and ran Wilson’s State Department.

House had powerful connections with international bankers in New York. He was influential, for example, with great financial institutions represented by such people as Paul and Felix Warburg, Otto H. Kahn, Louis Marburg, Henry Morgenthau, Jacob and Mortimer Schiff, Herbert Lehman. House had equally powerful connections with bankers and politicians of Europe.

Bringing all of these forces to bear, House persuaded Wilson that America had an evangelistic mission to save the world for “democracy.” The first major twentieth century tragedy for the United States resulted: Wilson’s war message to Congress and the declaration of war against Germany on April 6, 1917.

House also persuaded Wilson that the way to avoid all future wars was to create a world federation of nations. On May 27, 1916, in a speech to the League to Enforce Peace, Wilson first publicly endorsed Colonel House’s world-government idea (without, however, identifying it as originating with House).

In September, 1916, Wilson, at the urging of House, appointed a committee of intellectuals (the first President’s Brain Trust) to formulate peace terms and draw up a charter for world government. This committee, with House in charge, consisted of about 150 college professors, graduate students, lawyers, economists, writers, and others. Among them were men still familiar to Americans in the 1960′s:

These eager young intellectuals around Wilson, under the clear eyes of crafty Colonel House, drew up their charter for world government ( League of Nations Covenant) and prepared for the brave new socialist one-world to follow World War I. But things went sour at the Paris Peace Conference. They soured even more when constitutionalists in the United States Senate found out what was being planned and made it quite plain that the Senate would not authorize United States membership in such a world federation.

Bitter with disappointment but not willing to give up, Colonel House called together in Paris, France, a group of his most dedicated young intellectuals — among them, John Foster and Allen Dulles, Christian A. Herter, and Tasker H. Bliss — and arranged a dinner meeting with a group of like-minded Englishmen at the Majestic Hotel, Paris, on May 19, 1919. The group formally agreed to form an organization “for the study of international affairs.”

The American group came home from Paris and formed The Council on Foreign Relations, which was incorporated in 1921.

The purpose of the Council on Foreign Relations was to create (and condition the American people to accept) what House called a “positive” foreign policy for America — to replace the traditional “negative” foreign policy which had kept America out of the endless turmoil of old-world politics and had permitted the American people to develop their great nation in freedom and independence from the rest of the world.

Takeover of the U.S. State Department (1940s)

The Council did not amount to a great deal until 1927, when the Rockefeller family (through the various Rockefeller Foundations and Funds) began to pour money into it. Before long, the Carnegie Foundations (and later the Ford Foundation) began to finance the Council.

In 1929, the Council (largely with Rockefeller gifts) acquired its present headquarters property: The Harold Pratt House, 58 East 68th Street, New York City.

In 1939, the Council began taking over the U.S. State Department.

Shortly after the start of World War II, in September, 1939, Hamilton Fish Armstrong and Walter H. Mallory, of the Council on Foreign Relations, visited the State Department to offer the services of the Council. It was agreed that the Council would do research and make recommendations for the State Department, without formal assignment or responsibility. The Council formed groups to work in four general fields: Security and Armaments Problems, Economic and Financial Problems, Political Problems, and Territorial Problems.

The Rockefeller Foundation agreed to finance, through grants, the operation of this plan.

In February, 1941, the Council on Foreign Relations‘ relationship with the State Department changed. The State Department created the Division of Special Research, which was divided into Economic, Security, Political, Territorial sections. Leo Pasvolsky, of the Council, was appointed Director of this Division. Within a very short time, members of the Council on Foreign Relations dominated this new Division in the State Department.

During 1942, the State Department set up the Advisory Committee on Postwar Foreign Policy. Secretary of State Cordell Hull was Chairman. The following members of the Council on Foreign Relations were on this Committee:

  • Undersecretary of State Sumner Welles (Vice-Chairman)
  • Dr. Leo Pasvolsky (Executive Officer)
  • Hamilton Fish Armstrong
  • Isaiah Bowman
  • Benjamin V. Cohen
  • Norman H. Davis
  • James T. Shotwell

…snip

Founding of the United Nations (1945)

The crowning moment of achievement for the Council came at San Francisco in 1945, when over 40 members of the United States Delegation to the organizational meeting of the United Nations (where the United Nations Charter was written) were members of the Council. Among them:

By 1945, the Council on Foreign Relations, and various foundations and other organizations interlocked with it, had virtually taken over the U.S. State Department.

Some CFR members were later identified as Soviet espionage agents: for example, Alger Hiss and Lauchlin Currie.

Other Council on Foreign Relations members — Owen Lattimore, for example — with powerful influence in the Roosevelt and Truman Administrations, were subsequently identified, not as actual communists or Soviet espionage agents, but as “conscious, articulate instruments of the Soviet international conspiracy.”

I do not intend to imply by these citations that the Council on Foreign Relations is, or ever was, a communist organization. Boasting among its members Presidents of the United States (Hoover, Eisenhower, and Kennedy), Secretaries of State, and many other high officials, both civilian and military, the Council can be termed, by those who agree with its objectives, a “patriotic” organization.

The fact, however, that communists, Soviet espionage agents, and pro-communists could work inconspicuously for many years as influential members of the Council indicates something very significant about the Council’s objectives. The ultimate aim of the Council on Foreign Relations (however well-intentioned its prominent and powerful members may be) is the same as the ultimate aim of international communism: to create a one-world socialist system and make the United States an official part of it.

I have to stop there.  The Invisible Government goes on and on and on.  What is important is who actually started it and who/what/where it leads to.

Morgan and Rockefeller involvement

The Americans who subsequently returned from the conference became drawn to a discreet club of New York financiers and international lawyers who had organized previously in June 1918 and was headed by Elihu Root, J. P. Morgan‘s lawyer;[16] this select group called itself the Council on Foreign Relations.[10] They joined this group and the Council was formally established in New York on July 29, 1921, with 108 founding members, including Elihu Root as a leading member, geographer Isaiah Bowman as a founding Director, and John W. Davis, the chief counsel for J. P. Morgan & Co. and former Solicitor General for President Wilson,[16] as its founding president. Davis was to become Democratic presidential candidate in 1924.

Other members included John Foster Dulles, Herbert H. Lehman, Henry L. Stimson, Averell Harriman, the Rockefeller family‘s public relations expert, Ivy Lee,[20] and Paul M. Warburg and Otto Kahn of the investment bank Kuhn, Loeb.[16]

The Council initially had strong connections to the Morgan interests, such as the lawyer, Paul Cravath, whose pre-eminent New York law firm (later named Cravath, Swaine & Moore) represented Morgan businesses; a Morgan partner, Russell Cornell Leffingwell, later became its first chairman. The head of the group’s finance committee was Alexander Hemphill, chairman of Morgan’s Guaranty Trust Company. Economist Edwin F. Gay, editor of the New York Evening Post, owned by Morgan partner Thomas W. Lamont, served as Secretary-Treasurer of the organization. Other members related to Morgan included Frank L. Polk, former Under-Secretary of State and attorney for J.P. Morgan & Co. Former Wilson Under-Secretary of State Norman H. Davis was a banking associate of the Morgans.[16] Over time, however, the locus of power shifted inexorably to the Rockefeller family. Paul Cravath’s law firm also represented the Rockefeller family.[21] Edwin Gay suggested the creation of a quarterly journal, Foreign Affairs. He recommended Archibald Cary Coolidge be installed as the first editor, along with his New York Evening Post reporter, Hamilton Fish Armstrong, as assistant editor and executive director of the Council.[16]

Even from its inception, John D. Rockefeller, Jr. was a regular benefactor, making annual contributions, as well as a large gift of money towards its first headquarters on East 65th Street, along with corporate donors .[22] In 1944, the widow of Standard Oil executive Harold I. Pratt donated the family’s four-story mansion on the corner of 68th Street and Park Avenue for council use and this became the CFR’s new headquarters, known as The Harold Pratt House, where it remains today.

Several of Rockefeller’s sons joined the council when they came of age; David Rockefeller joined the council as its youngest-ever director in 1949 and subsequently became chairman of the board from 1970 to 1985; today he serves as honorary chairman.[23] The major philanthropic organization he founded with his brothers in 1940, the Rockefeller Brothers Fund, has also provided funding to the Council, from 1953 to at least 1980.[24]

Another major support base from the outset was the corporate sector; around 26 corporations provided financial assistance in the 1920s, seizing the opportunity to inject their business concerns into the weighty deliberations of the academics and scholars in the Council’s ruling elite. In addition, the Carnegie Corporation contributed funds in 1937 to expand the Council’s reach by replicating its structure in a diminished form in eight American cities.[25]

John J. McCloy became an influential figure in the organization after the Second World War, and he held connections to both the Morgans and Rockefellers. As assistant to Secretary of War (and J. P. Morgan attorney) Henry Stimson during World War II, he had presided over important American war policies; his brother-in-law John Zinsser was on the board of directors of JP Morgan & Co. during that time, and after the war McCloy joined New York law firm Milbank, Tweed, Hope, Hadley & McCloy as a partner. The company had long served as legal counsel to the Rockefeller family and the Chase Manhattan bank. McCloy became Chairman of the Board of Chase Manhattan, a director of the Rockefeller Foundation and Chairman of the Board of the CFR from 1953 to 1970. President Harry S. Truman appointed him President of the World Bank Group and U.S. High Commissioner to Germany. He served as a special adviser on disarmament to President John F. Kennedy and chaired a special committee on the Cuban crisis. He was said to have had the largest influence on American foreign policy of anyone after World War II. McCloy’s brother-in-law, Lewis W. Douglas, also served on the board of the CFR and as a trustee for the Rockefeller Foundation; Truman appointed him as American ambassador to Great Britain.[16]

I want to give just one example of the intricacy of the web:

Morton Halperin

  • Senior Vice President of the Center for American Progress
  • Director of George Soros’ Open Society Policy Center
  • Long associated with the Institute for Policy Studies and the National Lawyers Guild
  • Foreign policy expert who proposed unilateral U.S. nuclear disarmament, the end of all American clandestine activities, and United Nations control over every international use of the U.S. military
  • Befriended CIA agent-turned-Communist Philip Agee

Morton Halperin is Senior Vice President of the Center for American Progress and Director of the Open Society Policy Center established by George Soros.

Born in 1933 in Brooklyn, New York, Halperin graduated from Columbia University in 1958 and earned a Ph.D. from Yale University three years later.

From 1961 to 1966 he taught at Harvard University‘s Center for International Affairs. During this period, he advocated U.S. nuclear disarmament even if the Soviet Union did not likewise disarm. In any mutual arms reduction treaty with the Soviets, wrote Halperin in his 1961 treatise A Proposal for a Ban on the Use of Nuclear Weapons, “inspection was not absolutely necessary. … The United States might, in fact, want to invite the Soviets to design the inspection procedures if they seem interested in them.”

…snip

After he left government in 1970, Halperin became a Senior Fellow at the Brookings Institution. He was feted and embraced by many leftist organizations that promoted similar views, such as the Carnegie Endowment for International Peace and the Council on Foreign Relations.

…snip

In 1975 Halperin became Director of the Center for National Security Studies (CNSS), a spinoff of the Institute for Policy Studies (IPS). CNSS also is aligned with the National Lawyers Guild. Much of CNSS’s staff was derived from these two organizations. IPS Director Robert Borosage helped Halperin run CNSS.

…snip

In 1998 Halperin became Director of Policy Planning for the U.S. State Department. During his tenure there, 15 State Department laptop computers containing highly classified intelligence information disappeared; one of them was checked out to Halperin’s office. A number of people were punished for this serious security breach, but Halperin was not.

In February 2002 Halperin became Director of the Open Society Policy Center and has worked closely ever since with its creator, George Soros.

According to a March 1, 2004 report by Robert Dreyfuss in The Nation, Halperin and Soros together hand-picked the President of the Center for American Progress (CAP), former Clinton White House Chief of Staff John Podesta. Halperin today is Senior Vice President at CAP, where his son David is a Special Adviser on Campus Outreach.

Another of Morton Halperin’s sons, Mark Halperin, is the Political Director of ABC News.

Moving on….

The Brookings Institute

The Brookings Institution defines itself as “a private nonprofit organization devoted to independent research and innovative policy solutions.” Professing to be without a political agenda, it aims to “provide the highest quality research, policy recommendations, and analysis on the full range of public policy issues … for decision-makers in the U.S. and abroad on the full range of challenges facing an increasingly interdependent world.”

The Brookings Institution is an outgrowth of the Institute for Government Research (IGR), which was founded in 1916 to analyze public policy issues at the national level. In 1922 and 1924, one of IGR’s supporters, St. Louis businessman and philanthropist Robert Somers Brookings (1850-1932), established two sister organizations: the Institute of Economics and a graduate school (as part of Washington University) bearing his name. In 1927, the three entities merged to form the Brookings Institution. Its first Board included Mr. Brookings; Supreme Court Justice Felix Frankfurter; Charles W. Eliot, former President of Harvard; Fredric Delano, uncle of future President Franklin Delano Roosevelt; Herbert Hoover; and Frank Goodnow, who would become the first Chairman of the IGR’s Board of Trustees and President of Johns Hopkins University.

Mr. Brookings officially opposed FDR’s expansion of the welfare state during the Great Depression, and then-Brookings Institution President Harold Moulton concluded that the National Recovery Administration had actually impeded recovery. The Institution assisted in the planning of World War II, providing the government with manpower estimates and price control data; it also offered suggestions on the most efficient way to carry out the rebuilding of Europe after the War.

The Brookings Institution’s capacity to shape government policy increased dramatically in the 1950s, when it received substantial grants from the Ford and Rockefeller Foundations.  President Robert Calkins reorganized the Institution into Economic Studies, Government Studies, and Foreign Policy Studies programs, and by the mid-1960s Brookings was conducting nearly 100 research projects per year for the government as well as for private industry, making it the preeminent source of research in the world.

…snip

Brookings income derives from a wide variety of sources, including seminars run for government and businesses, and a vast array of corporate and government contracts.  In recent years, Brookings has received grants from the Aetna Foundation; the American Express Foundation; the Open Society Institute; the Fannie Mae Foundation; the Carnegie Corporation of New York; the Ford Foundation; the Bill and Melinda Gates Foundation; the MacArthur Foundation; the Rockefeller Foundation; the Rockefeller Brothers Fund; the AT&T Foundation, the Morris and Gwendolyn Cafritz Foundation, the Annie E. Casey Foundation, the Nathan Cummings Foundation, the Vira I. Heinz Endowment, the Heinz Family Foundation, the William and Flora Hewlett Foundation, the Robert Wood Johnson Foundation, the Joyce Foundation, the Andrew W. Mellon Foundation, the David and Lucile Packard Foundation, Pew Charitable Trusts, the Turner Foundation, the Surdna Foundation, and the Verizon Foundation. In 2004, grants to the Brookings Institutions totaled $32,107,359.

How are you feeling about that one?  Are you seeing the same names over and over again?

I am going to end here for the moment with lists of people on the Council on Foreign Relations for your perusal and background processing.  Are the conspiracy theorists right?  Was the plan always to have a “New World Order” starting with taking control of our money, then our elected offices, foreign policy and now leading to a market collapse caused by the Community Reinvestment Act?  Do we have the new French Aristocracy telling us to “eat cake”?  Is America’s version of Bastille Day coming?  Notice the corporate members; UBS, the Swiss bank closing American offshore accounts is on the list.

OFFICE NAME
Co-Chairman of the Board Carla A. Hills
Co-Chairman of the Board Robert E. Rubin
Vice Chairman Alexandre Louise Mohan
President Richard N. Haass
Board of Directors
Director Peter Ackerman
Director Fouad Ajami
Director Madeleine Albright
Director Charlene Barshefsky
Director Henry Bienen
Director Alan Blinder
Director Stephen W. Bosworth
Director Tom Brokaw
Director Sylvia Mathews Burwell
Director Frank J. Caufield
Director Kenneth Duberstein
Director Martin Feldstein
Director Richard N. Foster
Director Stephen Friedman
Director Ann M. Fudge
Director Helene D. Gayle
Director Maurice R. Greenberg
Director J. Tomilson Hill
Director Richard Holbrooke
Director Karen Elliott House
Director Alberto Ibargüen
Director Shirley Ann Jackson
Director Henry Kravis
Director Jami Miscik
Director Michael H. Moskow
Director Joseph Nye
Director Ronald L. Olson
Director James W. Owens
Director Colin Powell
Director David Rubenstein
Director George E. Rupp
Director Anne-Marie Slaughter
Director Joan E. Spero
Director Vin Weber
Director Christine Todd Whitman
Director Fareed Zakaria

The Board of Directors of the Council on Foreign Relations is composed in total of thirty-six officers. Peter G. Peterson and David Rockefeller are Directors Emeriti (Chairman Emeritus and Honorary Chairman, respectively). It also has an International Advisory Board consisting of thirty-five distinguished individuals from across the world.[6][31]

Corporate Members

Notable current council members

Notable historical members

Source: The Council on Foreign Relations from 1921 to 1996:Historical Roster of Directors and Officers[37]

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11 Responses to America’s Economic Collapse: An Intricate Web of Money, Power and Political Agendas, Part 4
  1. cats
    January 10, 2009 | 9:19 am

    It’s becoming clearer and clearer to me that we have been had. Depressing as it is to realize, I must thank you for the tremendous effort and extensive research you have done and which you are so clearly and concisely sharing.

    catsden.wordpress.com

    Reply
  2. navyvet48
    January 10, 2009 | 12:58 pm

    Wowee! A bit scary but somehow we will rise up and stop this shit! People are beginning to listen. I discussed your blog with people today. I expect there will be more visits and 20 somethings becoming aware of the impending implosion!

    Reply
  3. American Genie
    January 10, 2009 | 1:29 pm

    Great work. Much appreciated. What else are you gonna dig up for us? It’s scary to think about.

    I shall continue directing folks to your site. I have a feeling that magic hit # is going to skyrocket.

    Come by my place sometime if you have the chance. I’ve posted my thoughts on the use of the Lincoln Bible at the coronation of our criminal-elect. After you read the posted quotes from ol’ Honest Abe I think you’ll appreciate the irony of the situation.

    God bless America!

    Reply
  4. Diamond Tiger
    January 10, 2009 | 2:34 pm

    Thanks for the kudos folks – but I know you are all getting tired of the length and breadth of these articles – so I am going to change it up a bit now that everybody has a good background lesson on what is happening. I will keep the posts shorter and cover only one item at a time so as not to explode anybody’s head.

    Sound good?

    I’ll be by soon Cats and Genie!

    Reply
  5. jack parler
    April 12, 2009 | 6:15 pm

    Thanks for this. Just subscribed.

    Reply
    • Diamond Tiger
      April 12, 2009 | 6:24 pm

      Hey Jack! Make sure you take a look at The Pilgrims page.

      Reply
  6. Jay Goode
    August 29, 2009 | 8:00 am

    RT @JoAnneMoretti This is another interesting site. Good info on economy Geithner, etc. http://tinyurl.com/9lt6pe | Deserves 2 b read twice!

    Reply
  7. Janet Street
    August 29, 2009 | 11:15 am

    This is another interesting site. Good info on economy Geithner, etc. http://tinyurl.com/9lt6pe Web of Money, Power and Political Agendas RT

    Reply
  8. Jim Vanlandingham
    August 30, 2009 | 9:28 am

    RT @JoAnneMoretti Good info on economy Geithner, etc. http://tinyurl.com/9lt6pe Web of Money, Power and Political Agendas #TCOT

    Reply
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Pat Condell: Common Sense About A Mosque At Ground Zero
Tracking You Through Your Money

Big Brother’s Lock On Your Money Is Complete

Written on May 23, 2010 by LogisticsMonster in CRIME INC., Climate Of Fear, Money Lock, New World Order, The Federal Reserve, U.S. Senate
24 Comments

I wrote about it; I tried to warn people, but after the healthcare fight we just went through, I think most people just wanted a breather from battling the fascists in Washington (to our long-lasting detriment).

Now we have the financial reform bill that includes the new federal agency Office Of Financial Research, and the Bureau of Consumer Protection keeping track of every single financial transaction you could possibly imagine; including your bank balance, and when you walk to the ATM to take cash out.  I wasn’t lying, but I do think I was one of very few writing about it.

The fascists have the banks, the insurance companies, the credit card companies, the car companies, OUR healthcare, and now Americans’ financial transactions.

Senate Democrats Pass Bill Allowing Govt to Collect Addresses, ATM Records of Bank Customers

(CNSNews.com) – Senate Democrats united to pass a financial regulatory bill that allows the government to collect data on any person operating in financial markets at any level, including the collection of personal transaction records from local banks, including customers’ addresses and ATM receipts. (emphasis mine)

The Senate voted 59-39 on Thursday to pass the bill – the chief aim of which is to more-heavily regulate the financial industry – sending it to a conference committee in the House of Representatives, where differences between the House and Senate versions will be ironed out.

The bill, if it becomes law, will create the Bureau of Consumer Financial Protection and empower it to “gather information and activities of persons operating in consumer financial markets,” including the names and addresses of account holders, ATM and other transaction records, and the amount of money kept in each customer’s account.

The new bureaucracy is then allowed to “use the data on branches and [individual and personal] deposit accounts … for any purpose” and may keep all records on file for at least three years and these can be made publicly available upon request.

*break*

Shelby slammed the new consumer bureaucracy, saying that it was meant not to protect consumers but to “manage” them by monitoring their behavior.

“Mr. President, make no mistake, behind the veil of anti-Wall Street rhetoric is an unrelenting desire to manage every facet of commerce under the guise of consumer protection.

“They may be interested in protecting consumers, but they are more interested in managing them,” Shelby said.

Shelby also criticized the idea that Americans need government to watch over their every financial move, saying that it was better to allow people the freedom to make their own choices and fail than to never allow them the freedom to choose at all.

“Mr. President, I have faith in the American people and their ability to make good choices,” said Shelby.  “Granted, we do not always choose well.  But I believe that a poor choice freely made is far superior to a good choice made for me.”

“I am afraid that the architects of this bill do not share this sentiment,” he said. “Nor do they share my faith in the American people.”

Shelby further said that the ability of the Federal Reserve to collect such detailed information about the most basic of financial transactions was the beginning of an effort by government to regulate every financial action of every American citizen.

“This new consumer bureaucracy is intended by its architects in the Treasury to begin the process of financial regulation with the intent of changing the behaviors of the American people,” said the senator.

Shelby appears to be correct. The bill allows the bureau to collect any and all information on any person operating in the financial markets.

As it reads: “[T]he Bureau shall have the authority to gather information from time to time regarding the organization, business conduct, markets, and activities of persons operating in consumer financial services markets.”

Meanwhile, depending on the conference version of this bill, you may be able to fund a new federal agency that takes idle appropriations, invests them, and keeps the profits.  Those profits are ‘not considered the government’s property’. I am still trying to ascertain who that money actually belongs to because it is not yours anymore.

4.15.2010

Obama Turns Financial Reform Into A Political Fight

I am currently reading this bill and wanted to drop an interesting tidbit on you. For those interested in reading the 114 page Manager’s Amendment, go here. I am only a couple hundred pages into this POS but starting on page 60, a new government office is to be established. The “Office Of Financial Research” will be part of the Treasury, and will have a Director appointed by the President and confirmed by the Senate. This office will also have a data collection center to keep track of all financial and nonbank financial institutions so as to be able to report to Congress on companies that ‘threaten’ the economy. It is unclear how big or how many new government employees this office will create, but considering how events are unfolding now with Obamacare, I’m assuming pretty large.

The interesting tidbit pertains to the Financial Research Fund that is to be established and the ability of the Office that is providing Congress with reports to invest monies they aren’t using. Let me know if you think that’s a conflict of interest, and if you would like to know exactly how much money that is?

“Funds obtained by, transferred to, or credited to the Financial Research Fund shall be immediately available to the Office, and shall remain available until expended, to pay the expenses of the Office in carrying out the duties and responsibilities of the Office.”

The above quotes are from Chris Dodd’s markup draft. I went to the actual amended bill (Amendment No. 3739 of Bill S. 3217) that was passed and found the pertinent information starting on page 62, with the investment and non-governmental monies section on page 78. It’s still in there.

At this point, the underground economy is about to get a bit larger.

UPDATE: More information on the Office Of Financial Research, here.

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LogisticsMonster has content marketing with Arkayne Socialize.
24 Comments - 1st Amendment Honored Here!!!
11.2.2010...
How The Elites Are About To Make Us Serfs And Then Kick The Door Shut Behind Them

Tea Party Patriots Vs. The Master Class

Written on January 26, 2010 by LogisticsMonster in The Daily Crime, The Master Class
16 Comments

Still have that sinking feeling in your midsection every time you think about the District of Criminals, The Fed, Bernanke, etc.?  Are you still not sleeping well at night because you know something is “so wrong” but the scope of the problem is just getting larger each day?

Remember when we spoke about giving up every last penny of our wealth to get rid of the bloodsucking elites that are killing our childrens’ futures?

After reading this commentary, you will have the concise MATH, (there’s that word again), and course of the nation that  explains why you feel like a hamster on crack, and can’t sleep at night.  The numbers do not lie.

This piece is long, it’s brutal, and it will make you weep, but I urge you to read every single word because it will resonate. Remember it when the epitome of the elite class gives his State of The Union Address, and then it will be time to get the little gray cells working because I refuse to allow these bastards to keep raping us into indentured servitude.

America’s Impending Master Class Dictatorship

Copyright 2010 by Stewart Dougherty, with all rights reserved.

FOREWORD: At certain times, focusing on the big picture is important not just for investment success, but for personal welfare, and even survival. We believe such times are here. It is estimated that 98% of Americans have never held a gold coin in their hands. Yet 100% of Americans regularly handle Federal Reserve Notes. From a contrarian standpoint, the financial message from those two statistics is clear. Even so, gold is much more than money or an investment medium; it stands for liberty and throughout history has facilitated escape and ensured freedom. Never having touched a gold coin is the monetary equivalent to never having breathed fresh air, felt the warmth of sunshine, looked up at the stars or risen from the gutter. Fiat Federal Reserve Notes are becoming nothing more than sewage decomposing in the vast, toxic septic tank of predatory Washington politics, epic Federal Reserve arrogance and error, blatant Wall Street fraud and outright Master Class plunder. Below, we outline America’s troubling and compounding predicament, and urge you to think about how to protect yourself from its consequences, both financially and personally.

Thanks to the endless barrage of feel-good propaganda that daily assaults the American mind, best epitomized a few months ago by the “green shoots,” everything’s-coming-up-roses propaganda touted by Federal Reserve Chairman Bernanke, the citizens have no idea how disastrous the country’s fiscal, monetary and economic problems truly are. Nor do they perceive the rapidly increasing risk of a totalitarian nightmare descending upon the American Republic.

One stark and sobering way to frame the crisis is this: if the United States government were to nationalize (in other words, steal) every penny of private wealth accumulated by America’s citizens since the nation’s founding 235 years ago, the government would remain totally bankrupt.

According to the Federal Reserve’s most recent report on wealth, America’s private net worth was $53.4 trillion as of September, 2009. But at the same time, America’s debt and unfunded liabilities totaled at least $120,000,000,000,000.00 ($120 trillion), or 225% of the citizens’ net worth. Even if the government expropriated every dollar of private wealth in the nation, it would still have a deficit of $66,600,000,000,000.00 ($66.6 trillion), equal to $214,286.00 for every man, woman and child in America and roughly 500% of GDP. If the government does not directly seize the nation’s private wealth, then it will require $389,610 from each and every citizen to balance the country’s books. State, county and municipal debts and deficits are additional, already elephantine in many states (e.g., California, Illinois, New Jersey and New York) and growing at an alarming rate nationwide. In addition to the federal government, dozens of states are already bankrupt and sinking deeper into the morass every day.

The government continues to dig a deeper and deeper fiscal grave in which to bury its citizens. This year, the federal deficit will total at least $1,600,000,000,000.00 ($1.6 trillion), which represents overspending of $4,383,561,600.00 ($4.38 billion) per day. (The deficit during October and November, 2009, the first two months of Fiscal Year 2010, totaled $296,700,000,000.00 ($297 billion), or $4,863,934,000.00 ($4.9 billion) per day, a record.) Using the GAAP accounting method (which is what corporations are required to use because it presents a far more accurate and honest picture of a company’s finances than the cash accounting method primarily and misleadingly used by the U.S. government), the nation’s fiscal year 2009 deficit was roughly $9,000,000,000,000.00 ($9 trillion), or $24,700,000,000.00 ($24.7 billion) per day, as calculated by brilliant and well-respected economist John Williams. (www.shadowstats.com) Fiscal Year 2010’s cash- and GAAP-accounting deficits will likely be worse than 2009’s, given government bailout and new program spending that is on steroids and psychotic.

Putting Fiscal Year 2009’s $9,000,000,000,000.00 ($9 trillion) deficit another way, 17% of America’s private wealth, accumulated over a period of 235 years, was wiped out by just one year’s worth of government deficit spending insanity.

Given this, is it any surprise that Treasury Secretary Geithner has announced that the release of the nation’s FY 2009 supplemental GAAP financial statements has been delayed? Remember, this is the same Secretary Geithner who bullied people to cover up the sordid details of the AIG, or more accurately, the taxpayer-funded, multi-billion dollar, Santa Claus bailout and bonus bonanza for Goldman Sachs. Do you really think this government, characterized as it is by fiscal and monetary secrecy, lies, chicanery, cronyism and stonewalling, wants the people to know what is actually happening? Obviously, it does not, so it hides from the public the inexcusable facts.

It is estimated that the top 1% of Americans control roughly 40% of the nation’s wealth. In other words, 3 million people own $21,400,000,000,000.00 ($21.4 trillion) in net private assets, while the other 305 million own the remaining $32,000,000,000,000.00 ($32 trillion). 77,000,000 (77 million) Americans (the lowest 25%) have mean net assets of minus $2,300 ($-2,300.00) per person; they live from paycheck to paycheck, or on public assistance. The lower 50% of Americans own mean net assets of $27,800 each, about enough to purchase a modest car. Obviously, it would be impossible to retire on such an amount without significant government or other assistance. Meanwhile, the richest 10% of Americans possess mean net assets of $3,976,000.00 each, or 143 times those of the bottom 50%; the top 2% control assets worth more than 1,500 times those in the bottom 50%. When you combine these facts with Wall Street’s typical multi-million dollar annual bonuses, you get an idea of wealth inequality in America. Historically, such extreme inequality has been a well-documented breeding ground for totalitarianism.

If the government decides to expropriate (steal) or commandeer (e.g., force into Treasuries) America’s private wealth in order to buy survival time, such a measure will be designed to destroy the common citizens, not the elite. Insiders will be given advance warning about any such plan, and will be able to transfer their money offshore or into financial vehicles immune from harm. Assuming that the elite moves its money to safety, there would then be $120,000,000,000,000.00 ($120 trillion) in American debt and liabilities supported by only $32,000,000,000,000.00 ($32 trillion) in private net worth, for a deficit of $88,000,000,000,000.00 ($88 trillion). In that case, each American would owe $285,714.29 to balance the country’s books.  (Remember to multiply this amount by every person in your household, including any infant children.)

If the common people suspect that something diabolical was in the works, a portion of the $32 trillion in non-elite wealth could be evacuated as well prior to a government expropriation and/or currency devaluation, resulting in less money for the government to steal. What these statistics mean is that it is absolutely impossible for the government to fund its debt and deficits, even if it steals all of the nation’s private wealth. Therefore, the government’s only solutions are either formal bankruptcy (outright debt repudiation and the dismantling of bankrupt government programs) or unprecedented American monetary inflation and debt monetization. If the government chooses to inflate its way out of this fiscal catastrophe, the United States dollar will essentially become worthless. You can be absolutely certain that a PhD. in economics, such as Dr. Bernanke, is well aware of these realities, despite what he might say in speeches. For that matter, so are Chinese schoolchildren, who, when patronized by Treasury Secretary Geithner about America’s “strong dollar,” laughed in his face. One day, perhaps America’s school children will receive a real education so that they, too, will know when to laugh at absurd propaganda.

The government has announced that during the fiscal years from 2010 through 2019, it will create an additional $9,000,000,000,000.00 ($9 trillion) in deficits, an amount that is almost certain to be understated by trillions given the country’s current economic trajectory. The government assumes that this vast additional deficit will be funded by others, such as the Chinese, as it is a statistical fact that the United States will be incapable of funding it.

Furthermore, with the budgetary equivalent of a straight face, the Office of Management and Budget reports in its long-term, inter-generational budget projection that the United States government will experience massive, non-stop deficits for the next 70 (SEVENTY) years, requiring the issuance of tens of trillions of dollars of additional debt. The OMB does not project even one year of surplus during the entire seventy year budget period.

These deficits and debts are now so gargantuan that they have become surreal abstractions impossible even for sophisticated financiers to begin to comprehend. The common citizen has absolutely no idea what these numbers mean, or imply for his or her future. The people have been deluded into thinking that America’s arrogant, egomaniacal, always-wrong-but-never-in-doubt fiscal witch doctors and charlatans, including Greenspan, Rubin, Summers, Geithner and Ponce de Bernanke, have discovered a Monetary Fountain of Youth that endlessly spits up free money from the center of earth, in a geyser of good will toward the United States. Unfortunately, this delusion is false: there is no Monetary Fountain of Youth, and contrary to the apparent beliefs of the self-deified man-gods in Washington, D.C., the debt and deficits are real, completely out of control, and 100% guaranteed to create catastrophic consequences for the nation and its people.

When government “representatives” deliberately sell into slavery the citizens of a so-called free Republic, they have committed treason against those people. This is exactly what has happened in the United States: the citizens have been sold into debt slavery that they and their descendants can never escape, because the debts piled onto their backs can never, ever be paid. Despite expensive and sophisticated brainwashing campaigns emanating from Washington, claiming that America can “grow” out of its deficits and debt, it is arithmetically impossible for the country to do so. The government’s statements that it can dig the nation out of its fiscal hole by digging an even deeper chasm have become parodies and perversions of even totally discredited and morally disgusting Keynesianism.

The people no longer have elected representatives; they have elected traitors.

The enslavement of the American people has been orchestrated by a pernicious Master Class that has taken the United States by the throat. This Master Class is now choking the nation to death as it accelerates its master plan to plunder the people’s dwindling remaining assets. The Master Class comprises politicians, the Wall Street money elite, the Federal Reserve, high-end government (including military) officials, government lobbyists and their paymasters, military suppliers and media oligarchs. The interests and mindset of the Master Class are so totally divorced from those of the average American citizen that it is utterly tone deaf and blind to the justifiable rage sweeping the nation. Its guiding ethics of greed, plunder, power, control and violence are so alien to mainstream American culture and thought that the Master Class might as well be an enemy invader from Mars. But the Master Class here, it is real and it is laying waste to America. To the members of the Master Class, the people are not fellow-citizens; they are instruments of labor, servitude and profit. At first, the Master Class viewed the citizens as serfs; now that they have raped and destroyed the national economy, while in the process amassing unprecedented wealth and power for themselves, they see the people as nothing more than slaves.

America’s public finances are now so completely dysfunctional and chaotic that something far worse than debt enslavement and monetary implosion, terrible curses unto themselves, looms on the horizon: namely, a Master Class-sponsored American dictatorship.

Throughout history, the type of situation in which America now finds itself has been a fertility factory for tyranny. The odds of an outright overthrow of the people by the Washington and Wall Street Axis, or more broadly, the Master Class are increasing dramatically. The fact that so few people believe an American dictatorship is possible is exactly why it is becoming likely.

Dictatorships have blighted history and ruined lives since the beginning of civilization. In recent times alone, tyrants such as Hitler, Stalin, Lenin, Ceausescu, Amin, Hussein, Mussolini, Tojo, Kim, Pinochet, Milosevic, Tito, Batista, Peron, Pol Pot, Mugabe, Marcos, Somoza, Mengistu, Bokassa, Sese Seko, Franco, Ho Chi Minh, Mao, and Castro have power-sprayed blood onto the screen of time and ravaged mankind with murder, torture and human oppression. A full catalog of history’s tyrants would require a book of hundreds of pages. In the past 100 years alone, over 200 million human beings have been annihilated by wars, ethnic cleansings and government assassinations. Just when we think that civilization has been able to rise above tyranny’s inhumanity and disgrace, a new dictator appears on the scene to start the process all over again. Every time this happens, fear and submission paralyze the vast majority of the affected masses, leading them to “follow orders” and lick autocracy’s blood-stained boots.

History has proven to tyrants that oppression works. In fact, it is easy to control a populace, once you control the money, markets, military (including police), media and minions (the recipients of welfare, social security, free health care, government jobs and the like, who are dependent upon the state and likely to be compliant). This is exactly where the United States is today.

Recent American events paint an ominous picture of a Master Class that is now in total control.

When 90% of the American people vehemently rejected the $700,000,000,000.00 ($700 billion) TARP bailout plan, the Master Class put it on a fast track and approved it anyway.

When a clear majority of the American people said no to a government takeover of Chrysler and GM, the Master Class poured billions of taxpayer dollars into those corporate sinkholes and took them over anyway.

When the people said no to multi-trillion dollar crony bailouts for the bankers and insurers whose corruption had caused global financial mayhem, the government pledged to those elite insiders more than $13,000,000,000,000.00 ($13 trillion) of the people’s money anyway.

When the people expressed astonishment and anger that Wall Street planned to pay itself record 2009 bonuses, in the midst of America’s worst-ever fiscal and financial crisis caused by them, Wall Street stuffed its pockets with taxpayer-supported bonus money anyway.

When the people said no to a proposed $40,000,000,000.00 ($40 billion) bailout of AIG and its elite trading partners such as Goldman Sachs (an amount that subsequently exploded to $180,000,000,000.00+ ($180+ billion)), the Master Class went underground, covertly misappropriated taxpayer money and made the payoffs anyway.

When Fannie Mae and Freddie Mac were nationalized at enormous taxpayer expense, the government approved $6,000,000.00 individual pay packages in 2009 (150 times the average American wage) for the CEOs of both failed companies anyway.

When a clear majority of the people said no to nationalized health care, even after being bombarded by a multi-million dollar, lie-drenched propaganda campaign designed to bamboozle them, the House and Senate passed nationalized health care bills anyway.

When more than seven million American workers lost their jobs and were subsisting on unemployment benefits and food stamps, federal government employees, who now earn DOUBLE what private sector workers earn, were given another round of pay and benefits increases anyway.

When private sector workers’ 401Ks and IRA retirement plans plummeted in value due to economic collapse and endemic Wall Street-orchestrated market corruption (including systemic front running, flash trading, naked short selling and other manipulations), government “defined benefit,” lifetime-cost-of-living-adjusted pension plans, despite already being underfunded by $2,000,000,000,000.00 ($2 trillion), were made richer than ever anyway.

The long, shameful litany of events signaling the total divorce between the Master Class and the people of the United States doesn’t stop there. It goes on and on.

The message from the American Master Class to the American people is simple and clear:

We Defy You.

Governments that openly defy the people are either already totalitarian or in the process of becoming so. Monetarily, the United States clearly functions as a totalitarian dictatorship already, with a Federal Reserve that operates in secrecy, creates limitless amounts of debt and currency at will, and showers trillions of dollars upon favored Master Class insiders with zero transparency or accountability whatsoever. The Federal Reserve is so shameless about its dictatorial powers that it flatly refuses to provide details about multi-trillion dollar bailouts and rescues of privileged elites, in open defiance of Congress and the people. The fact that they get away with these blatant acts of defiance demonstrates the true extent of the Master Class chokehold on America.

If the Master Class were a benign despot and if its policies and programs actually worked, that would be one thing. But that is not the case. Rather, its programs are in a complete shambles.

Every single government entitlement program in the United States is bankrupt. This includes Social Security ($17,500,000,000,000.00 underfunded; $17.5 trillion); Medicare Part A ($36,700,000,000,000.00 underfunded; $36.7 trillion); Medicare Part B ($37,000,000,000,000.00 underfunded; $37 trillion); Medicare Part D ($15,600,000,000,000 underfunded; $15.6 trillion), Government and military pensions ($2,000,000,000,000 underfunded; $2 trillion), Food Stamps (current underfunding difficult to measure because the number of recipients is exploding; hundreds of billions underfunded versus original projections, minimum); and the list goes on. The above underfunding amounts are NET of projected tax receipts over the next 50 years. But the current recession has invalidated virtually all long-term budget and tax receipt assumptions, meaning that the true underfunded amounts are now greater than current, already mind-boggling estimates.

While the above statistics are terrifying enough to any citizen with a functioning brain, what is Twilight Zone-eerie and a far more serious cause for alarm is the casual indifference with which the Master Class is now making the country’s dire and irreparable fiscal circumstances even worse.

The nationalized health care program will cost at least $1 trillion over the next ten years, and most likely multiples of that. It is being crammed down America’s throat by a bankrupt government that does not have the money today and will not have the money tomorrow to pay for it. Worse is the fact that the same government that has bankrupted each and every existing social program now intends to directly or indirectly control the health care of all citizens. Based on the government’s existing track record and the health care program’s enormous complexity, invasiveness and cost, the probability that it will become a national fiscal and humanitarian catastrophe is roughly 100%.

“Cap and Trade” is a multi-trillion dollar tax scam being foisted onto the American public without a legitimate debate or popular referendum. You might be surprised to learn that “Climate Revenues” are already included in the federal budget, starting with $79,000,000,000.00 ($79 billion) in fiscal year 2012, which begins only 20 months from now. During fiscal years 2012 through 2019, the government expects to collect $646,000,000,000.00 ($646 billion) in “Climate Revenues,” a completely new tax category. Have any of your elected traitors told you that they have enacted $646,000,000,000.00 ($646 billion) in “Climate” taxes beginning twenty months from now and continuing forever? These “Climate Revenues” are based on junk science, lies and hysteria, and have been pimped by greed-diseased parasites who seek to make billions from operating and manipulating the Cap and Trade “marketplace.” Favored elitists such as Hank Paulson, Al Gore, General Electric and Goldman Sachs, among others, have positioned themselves to profit from the nation’s upcoming Cap and Trade tax misery and economic debilitation.

The reality is that the giant Ponzi scheme called the United States of America is running out of money. In any Ponzi scheme, money must constantly be poured into the top of the funnel in order to pay the redeemers at the bottom. As the number of redeemers has grown, tax receipts have fallen far short of covering their withdrawals, a problem that has now become an outright government funding emergency further aggravated by the fiscal, financial and economic crises.

If the Washington and Wall Street Axis were not legally able to create and distribute counterfeit American money, the Ponzi scheme would have collapsed already. Trillions of new, out-of-thin-air, printing-press and electronic “dollars” have bought the Axis additional time, but new sources of revenue must immediately be found to keep the scam alive. Congress is fully aware of this reality. Outright tax increases would be bad politics during a recession that is morphing into a depression, and also bad for 2010 re-election campaigns, so they cannot be implemented. Therefore, Congress continues to advance the health care and Cap and Trade agendas, which are nothing but taxation Trojan Horses festooned in righteousness and sanctimony, despite overwhelming popular opposition.

If the nationalized health care program is passed, revenues and fees will kick in immediately in 2010, whereas costs will not begin to accrue until 2012 and later. The government plans to spend the revenues immediately to forestall a total fiscal collapse. Nationalized health care has absolutely nothing to do with health care; it has to do with creating an immediate revenue stream to help fix the current government funding crisis. Similarly, Cap and Trade has nothing to do with fixing the environment. It, too, is nothing more than a massive tax increase similarly designed to address the government’s epic funding shortfall, with thick slices of pork thrown  in for privileged insiders and deceitful propagandists like bloated “Father of the Internet” and now “Savior of the World” Al Gore.

The last thing the Master Class wants is for the people to understand the disastrous state of the nation’s finances. Master Class brainwashing tells the people that it is “negative” and “pessimistic” to look at the facts, despite the fact that psychological health is characterized by the ability to identify and deal with reality. The Master Class wants the people to put on Bozo the Clown happy faces and let sugar plums and green shoots dance in their brains as they write one check after another to pay for Cap and Trade, nationalized health care, and a mind-numbing assortment of other taxes and fees.

On Sunday night, November 30, 2009, North Korea’s dictator Kim Jong Il (a name that says it all, even better than Made-off’s), an international poster child of Master Class psychological illness, devalued his country’s currency by 99%. This vicious tyrant, who has given birth to a national hell on earth, is chauffeured in Mercedes Benz limousines, drinks the finest imported whiskies and dines in imperial dignity on foods prepared by personal chefs while his citizens starve to death on the streets or, at best, eke out a subsistence living. Kim became paranoid that the people were actually figuring out how to improve their pitiful, impoverished lives in tiny ways, so he decided to wipe them out. The people were given one week to exchange their money at a rate of 100 old Won for 1 new Won. Any lifetime family savings in excess of roughly $700.00 were simply confiscated by the North Korean government. To keep the people in line, the military and police were put on high alert, fully prepared to kill or arrest any protesters.

On January 9, 2010, Venezuela’s strong man Hugo Chavez devalued his country’s currency by 50%, overnight and without warning, causing immediate inflation, shortages of food and supplies, and general financial chaos throughout the nation.

While you might be shaking your head in pity over the plight of the citizens of North Korea and Venezuela, ask yourself this: could this not happen in the United States?

On April 5, 1933, President Franklin D. Roosevelt, an Obama hero, outlawed gold ownership overnight by signing Executive Order 6102, which gave the people three and one-half weeks to surrender all privately-owned bullion to the government for a price of $20.67 per ounce. On January 30, 1934, nine months after collecting the people’s gold, Roosevelt devalued the dollar 69% overnight, by raising the gold price from $20.67 to $35.00 per ounce.

Since its founding in 1913, the Federal Reserve has devalued the dollar by 98+% thanks to endless money printing and debt creation, a corrosive and impoverishing process that is now accelerating. In the past year, the Fed has engineered $20+ trillion in bailouts, subsidies and guarantees for well-connected and lucky scavengers and opportunists, an amount equal to roughly 40% of the total private wealth created in this country since its inception. All because a few elitist government man-gods with an almost perfect record of error and failure have deemed in their imperial wisdom that it shall be so. The citizens, whose hard-earned wealth is being systematically destroyed by this continual, government-decreed monetary debasement were never invited to the debate or given a say, which is par for the course for dictatorships. This massive de facto devaluation now hangs over the people’s wealth like a great monetary sword of Damocles.

Conceptually, whether it is a 50% overnight devaluation in Venezuela, a 69% overnight devaluation in the United States, a 98% devaluation in America over time, or a 99% overnight devaluation in North Korea, what is the difference? The fact is: there is no difference; monetary debasements are all the same. In each and every case, the people’s wealth is stolen via government edict, while the people stand by helplessly and in shock.

So one must ask: For whom does the bell toll? A foreign “them,” or a domestic us? Who is to say that you will not be told tomorrow morning that, effective immediately, in accordance with some perversely named mandate such as the “American Monetary Security, Wealth Preservation and Terrorism Prevention Act,” enacted by emergency for “the safety of the nation and the financial well being of the citizens,” all existing currency and bank balances will be redenominated in “New Dollars,” at a conversion rate of 1 new for every 100 old currency units? Would this not simply be another, almost predictable act of defiance toward the American people by the Master Class? And if that happened, do you honestly believe that the Master Class would not have been alerted in advance and allowed to make special preparations for itself ahead of the devaluation? Do you think they intend to go down in the same ship as the people they defy? If such a currency devaluation were announced, what could you do about it? March on Washington? But how would you get there if your money had been wiped out?

Despite what you may hear from State Media, which includes virtually all establishment news organizations, particularly financial ones (e.g., CNBC), America is on the precipice. No bankrupt nation in history has ever defended or preserved the freedoms of its citizens. In fact, it has been the exact opposite: in desperation, bankrupt governments have routinely plundered their citizens’ wealth and imposed totalitarian controls. What will make things different for the United States, the largest debtor nation in all of recorded civilization?

The United States government cannot ever, possibly pay its debts, is pathologically incapable of controlling its spending or curbing its hunger for both domestic and international empire and persistently refuses to tell the American people the truth. If America’s citizens were told the truth and given the benefit of true leadership, as opposed to the guile and dishonesty of an endless array of political liars and hacks, perhaps they could rally and defeat the problems that afflict them. But instead, they are fed by the Master Class a steady diet of narcotic propaganda that deludes, confuses and enervates them. The truth cannot set people free if it is never told, and that is the essence of America’s gathering tragedy.

In a future article, we will detail specific developments you should watch for to chart the course of America’s ominous and potentially deadly national storm. The current, grave situation is already a clear call to action. When the signals become even more urgent, it will be late in the game to take protective action, and possibly too late. Citizens should begin to prepare now not just for financial survival, but for the personal security of themselves and their loved ones should a Category 5 economic and political hurricane rip into the nation, something that becomes more likely every day.

With respect to personal finances, in virtually every national currency devaluation and major political upheaval in the past, gold has represented sanctuary for the affected people. Gold has not just preserved wealth, but personal freedom as well. While governments can devalue fiat currencies, they cannot, by edict, devalue gold. Yes, they can try to manipulate its price, but unless all governments join in the collusion, ultimately the price will return to market. The market for gold is global, and demand exists in all nations and among all peoples. Should the government attempt to confiscate gold, it will be an outright admission that the financial system is collapsing, and the people will know better than to hand over to a corrupt government their only means of survival. The most important point is this: devalued currencies never rise again. Once they are destroyed, they are gone forever, and those whose wealth had once been denominated in them are wiped out. As you have no doubt heard before, not one fiat currency has survived over time, and that is an indisputable fact. More significantly, no fiat currency has ever suffered the abuse that has been inflicted upon the United States dollar, meaning that it is at extreme risk. Gold has been money for 5,000 years. It has not merely survived, it has prevailed over each and every fiat currency collapse throughout history. Given this, the most important financial question a person can ask him- or herself today is: How is my wealth denominated at this time? And given its denomination, is my wealth likely to be safe in current and evolving circumstances?

One thing is certain: as the epic David and Goliath monetary battle unfolds, between the people fighting to defend their hard-earned wealth on one side, and a Master Class that greedily and pathologically wants to plunder them on the other, the price of gold will become extremely volatile for a period of time. Volatility will, in fact, tell you that the War on Wealth has officially been declared, and will be your signal to do whatever you must to protect what is yours. As the government Goliath and its Master Class allies short tonnes of bullion into rigged futures markets in a desperate attempt to make gold look dangerous and risky, the Davids will be coming forth not just in the United States but from all corners of the globe, buying 10 grams here and one ounce there. There are 6.8 billion Davids, versus one diseased Master Class that numbers in the small millions. There is no way the Master Class can defeat the people, if the people finally rise up and say “No More of Your Plunder. No More of Your Cold and Soulless Financial Oppression. No More of Your Cynical and Godless Exploitation.”

If you find the above argument compelling, you should consider how to protect yourself from Executive Orders that could be issued at any time, under any pretext, and that could be extremely hostile to your financial and/or personal health and well being. One simple way to start is to purchase one ounce of gold for yourself and each member of your household, and much more if you can afford it. That is not financial advice; it is merely the common sense generously communicated to you by history.

Stewart Dougherty

Stewart Dougherty is a specialist in inferential analysis, the practice of identifying historic and contemporary patterns and then extrapolating their likely effects upon the future. Dougherty was educated at Tufts University (B.A., magna cum laude), and Harvard Business School (M.B.A. and an academic Fellow). He can be reached at stewartdougherty@cs.com. He is not affiliated with or compensated by those he references or recommends. He does not offer investment or trading advice, and nothing in this article should be construed as such. This article represents the author’s personal opinions, and nothing more. The reader has the author’s permission to share, print, forward or post this article provided that the content is not changed and the author is acknowledged.

(H/T Mike)

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