Bitcoins – Coins For the Cryptocracy

People all over the political spectrum are pushing bitcoins again.

I explained earlier why I felt you should avoid them. When I did, I withheld any reasoning except the most logical and self-evident.

Short version:

You can accomplish everything that bitcoins can achieve with good old cash. And you don’t need electricity, internet, computers, devices, and security software when you use cash.

Second, if governments hate cash for its secrecy, why are they ignoring or pushing cryptocurrencies, which are supposedly even more secretive?

Makes no sense, does it?

The problem with bitcoins is they provide a solution for what isn’t a problem.

Secrecy isn’t a problem.

Secrecy can be achieved as is, if you set your mind on it.

The real problem is that every increase in secrecy augments the power of the cryptocracy – the unholy alliance of the spy agencies, criminals, and criminal financial cartels.

These are the forces that actually control our lives.

The criminal ruling class loves bitcoin because they know they have the power to exploit it fully. The ordinary chump just thinks he does.

As for Satoshi Nakamto, there’s no such person. It’s a made-up name, even though it has a meaning. A sinister one that gives the game away.

Don’t let clever people fool you into thinking it’s a real person.

They are probably being compensated for saying so.

Remember, practically every political site of any size on the web is in bed with intelligence. When they are not, they get pruned regularly.

Just see what happened to me here.

Bitcoin comes out of Israeli cryptographic research. The details I don’t know, but that’s generally accurate.

It’s not about saving anyone. It’s about enacting the kabbalist’s vision on earth.

That vision demands that the Anglo-Judaic Western powers rule the world through decentralized systems.

Those who are pushing bitcoin are on board that agenda.

I am too busy recovering from the latest body-blow from the cryptocracy to spell it out better just now.

But I will get to it.

If you want to gamble, go ahead.

But if you adopt bitcoins because you think your life will become opaque to the powers-that-be, you might want to rethink that.

The only way to hide anything done on your computer is to turn it off, smash the hard drive into metal dust, and throw it into a nuclear waste site.

But even then, there are still the servers and the other fellows’ computers.

Not to mention advances in technology or mathematics that will turn bitcoins invulnerability into mush.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Libertarian Republic On Steve Bannon’s Art Of The “New Deal”

Libertarian Republic gets it right:

Taking Bannon at his own word, and in the context of 1930s, it sounds a lot like the rhetoric coming from Germany pre-World War II. His rhetoric matches the anger, scapegoating, and emotional ploys spoken in the early days of Adolf Hitler‘s rise.

While this may seem pejorative, or hyperbolic, let us look at how the Mises Institute, an Austrian Economic think tank, explains 1930 Germany’s economic situation.

In the 1930s, Hitler was widely viewed as just another protectionist central planner who recognized the supposed failure of the free market and the need for nationally guided economic development. Proto-Keynesian socialist economist Joan Robinson wrote that “Hitler found a cure against unemployment before Keynes was finished explaining it.”

What were those economic policies? He suspended the gold standard, embarked on huge public-works programs like autobahns, protected industry from foreign competition, expanded credit, instituted jobs programs, bullied the private sector on prices and production decisions, vastly expanded the military, enforced capital controls, instituted family planning, penalized smoking, brought about national healthcare and unemployment insurance, imposed education standards, and eventually ran huge deficits. The Nazi interventionist program was essential to the regime’s rejection of the market economy and its embrace of socialism in one country.

Now compare that to how Bannon and Trump have described their plans and vision for having won the White House.

  1. 1 Trillion Dollar Infrastructure matches the huge public works programs
  2. “The globalists gutted the American working class and created a middle class in Asia,”  along with Trumps promises to coerce business back into the US, matches protection of industry from foreign competition,
  3. “With negative interest rates throughout the world, it’s the greatest opportunity to rebuild everything,” added to Trumps call to continue borrowing, matches expanding credit and the continuance of large deficits
  4. “Rebuild everything. Shipyards, iron works, get them all jacked up,” matches the instituted jobs programs
  5. Trumps possible control of capital through protectionist trade.
  6. The comment by Bannon about being in power for the next “50 years” sounds awfully similar to the how Nazi’s described the Third Reich. “It is our will that this state shall endure for a thousand years. We are happy to know that the future is ours entirely!” – Triumph of Will (1935)

This not to say that Bannon or Trump should be compared to Nazis or that they have come close to committing the acts against humanity that occurred in that period of history. Rather it is a simple question which compares the rhetoric being used by the two administrations in their rise to power. After all, this perspective is a simple look back at history, so as to learn from it and utilize it to spot potential issues in the future. If we willfully ignore details, even if just as a safety measure, then we leave ourselves at risk of missing what could’ve been right under our nose. Famed philosopher George Santayana once said, “Those that fail to learn from history, are doomed to repeat it.”

No Cash Transactions Above 3 Lakhs ($4447)

Finance Minister Arun Jaitley’s 2017 budget proposes a ban on any cash transaction in a day over 3 lakhs rupees (about $4446.75).

This is far worse than any restriction in the US, where cash transactions above $10,000 are not banned, but simply reported by the bank to the IRS.

Like demonetization, the new ban is an unnecessarily coercive, intrusive, and punitive move, with entirely foreseeable and counterproductive results.

By completely banning cash transactions above 3 lakhs, the government is actually unraveling the last stitch of credibility holding its efforts together.

Large cash transactions are not going to disappear. All that will happen is that they will not pass through banks at all.

Instead, a new parallel economy will spring up.

Large purchases have hitherto involved a percentage of the price being reported and taxed (the white part) and the rest being paid under the table (the black part).

Now you can be assured that come April 1 there will be no “white” part at all.

It will be all black.

Just as the printing of new currency notes was the pretext whereby fake notes, excess currency, and chaos have been slyly injected into the system leaving no one sure of just how much cash is in circulation at all, so too the new tax will create a new layer of impenetrable fog under cover of which the enemies of India’s aam admi will operate with impunity.

Those enemies, let us be clear, operate not just from terrorist outposts in Bangladesh or Pakistan, but from the seat of the international cabal’s financial shock-and-awe machinery in India: that is, from the RBI, the finance ministry, and the Prime Minister’s Office.

US Now World’s Biggest Tax Haven

Bloomberg:

The U.S. failure to sign onto the OECD information-sharing standard is “proving to be a strong driver of growth for our business,” wrote Bolton’s chief executive officer, Ray Grenier, in a marketing e-mail to bankers. His firm is seeing a spike in accounts moved out of European banks—“Switzerland in particular”—and into the U.S. The new OECD standard “was the beginning of the exodus,” he said in an interview.

The U.S. Treasury is proposing standards similar to the OECD’s for foreign-held accounts in the U.S. But similar proposals in the past have stalled in the face of opposition from the Republican-controlled Congress and the banking industry.

At issue is not just non-U.S. citizens skirting their home countries’ taxes. Treasury also is concerned that massive inflows of capital into secret accounts could become a new channel for criminal money laundering. At least $1.6 trillion in illicit funds are laundered through the global financial system each year, according to a United Nations estimate.

Offering secrecy to clients is not against the law, but U.S. firms are not permitted to knowingly help overseas customers evade foreign taxes, said Scott Michel, a criminal tax defense attorney at Washington, D.C.-based Caplin & Drysdale who has represented Swiss banks and foreign account holders.

“To the extent non-U.S. persons are encouraged to come to the U.S. for what may be our own ‘tax haven’ characteristics, the U.S. government would likely take a dim view of any marketing suggesting that evading home country tax is a legal objective,” he said.

Rothschild says it takes “significant care” to ensure account holders’ assets are fully declared. The bank “adheres to the legal, regulatory, and tax rules wherever we operate,” said Rees, the Rothschild spokeswoman.

Penney, who oversees the Reno business, is a longtime Rothschild lawyer who worked his way up from the firm’s trust operations in the tiny British isle of Guernsey. Penney, 56, is now a managing director based in London for Rothschild Wealth Management & Trust, which handles about $23 billion for 7,000 clients from offices including Milan, Zurich, and Hong Kong. A few years ago he was voted “Trustee of the Year” by an elite group of U.K. wealth advisers.

In his September San Francisco talk, called “Using U.S. Trusts in International Planning: 10 Amazing Feats to Impress Clients and Colleagues,” Penney laid out legal ways to avoid both U.S. taxes and disclosures to clients’ home countries.

In a section originally titled “U.S. Trusts to Preserve Privacy,” he included the hypothetical example of an Internet investor named “Wang, a Hong Kong resident,” originally from the People’s Republic of China, concerned that information about his wealth could be shared with Chinese authorities.

Putting his assets into a Nevada LLC, in turn owned by a Nevada trust, would generate no U.S. tax returns, Penney wrote. Any forms the IRS would receive would result in “no meaningful information to exchange under” agreements between Hong Kong and the U.S., according to Penney’s PowerPoint presentation reviewed by Bloomberg.

Penney offered a disclaimer: At least one government, the U.K., intends to make it a criminal offense for any U.K. firm to facilitate tax evasion.

Rothschild said the PowerPoint was subsequently revised before Penney delivered his presentation. The firm provided what it said was the final version of the talk, which this time excluded several potentially controversial passages. Among them: the U.S. being the “biggest tax haven in the world,” the U.S.’s low appetite for enforcing other countries’ tax laws, and two references to “privacy” offered by the U.S.

“The presentation was drafted in response to a request by the organizers to be controversial and create a lively debate among the experienced, professional audience,” Rees said. “On reviewing the initial draft, these lines were not deemed to represent either Rothschild’s or Mr. Penney’s view. They were therefore removed.”

Sinister Agenda Behind DeMo

Bill Engdahl rehashes the agenda behind DeMo, in a good piece, that like all Western  analysis, avoids mentioning the scores of people in India who have in real time deconstructed this operation as it occurred, instead, attributing it to investigation by a German economist.

Whether that is proof of disinformation or controlled opposition I do not know. But I always suspect people who publish misleading sources.

Nonetheless, the article is a good summing up of the agenda behind DeMo, while omitting the British angle and pinning the blame on “Washington” in the usual way of left-wing sites.

[Global Research based in Canada publishes useful pieces, slanted heavily toward Marxist or leftist analysis, thus avoiding the conspiracy tag.]

The Modi cash-less India operation is a project of the US National Security Council, US State Department and Office of the President administered through its US Agency for International Development (USAID). Little surprise, then, that the US State Department spokesman, Mark Toner in a December 1, 2016 press briefing praised the Modi demonetization move stating, “…this was, we believe, an important and necessary step to crack down on illegal actions…a necessary one to address the corruption.”

Keep in mind that USAID today has little to do with aiding poorer countries. By law it must follow the foreign policy agenda of the President’s National Security Council and State Department. It’s widely known as a conduit for CIA money to execute their dirty agendas abroad in places such as Georgia. Notably, the present head of the USAID, Gayle Smith, came to head USAID from her post as Senior Director at the US National Security Council.

German economist and blogger, Norbert Haering, in an extensive, well-documented investigation into the background of the bizarre Modi move to a cash-less India, found not only USAID as the key financial source of the project. He also uncovered a snake-pit of organizational vipers being funded by USAID to design and implement the India shock therapy.

USAID negotiated a co-operation with the Modi Indian Ministry of Finance. In October, 2016 in a press release USAID announced it had created and funded something it named Project Catalyst. The title of their report was, “Catalyst: Inclusive Cashless Payment Partnership.” Its stated goal it said was to bring about a “quantum leap” in cashless payment in India.

They certainly did that. Maybe two quantum leaps and some.

If we dig a bit deeper we find that in January, 2016, USAID presented the Indian Finance Ministry a report titled, Beyond Cash: Why India loves cash and why that matters for financial inclusion. Financial “inclusion” for them means getting all Indians into the digital banking system where their every payment can be electronically tracked and given to the tax authorities or to whomever the government sees fit.

Astonishingly, the report, prepared for USAID by something called the Global Innovation Exchange, admitted that “97% of retail transactions in India are conducted in cash or check; Few consumers use digital payments. Only 11% used debit cards for payments last year. Only 6% of Indian merchants accept digital payments…Only 29 percent of bank accounts in India have been used in the last three months.” The US and Indian governments knew very well what shock they were detonating in India.

The Global Innovation Exchange includes such dubious member organizations as the Bill & Melinda Gates Foundation, a major donor to the Modi war on cash initiative of USAID. It also includes USAID itself, several UN agencies including UNICEF, UNDP, UNHCR. And it includes the US Department of Commerce and a spooky Maclean, Virginia military contractor called MITRE Corporation whose chairman is former CIA Director, James Rodney Schlesinger, a close associate of Henry Kissinger.

The USAID Project Catalyst in partnership with the Indian Finance Ministry was done, according to the USAID press statement, with a sinister-sounding organization called CashlessCatalyst.org. Among the 35 members of CashlessCatalyst.org are USAID, Bill & Melinda Gates Foundation, VISA, MasterCard, Omidyar Network of eBay billionaire founder Pierre Omidyar, the World Economic Forum-center of the globalization annual Alpine meetings.

War on Cash

However, a most interesting member of the USAID Project Catalyst together with the Indian Ministry of Finance is something called Better Than Cash Alliance. In point of fact the US-government-finance Project Catalyst grew out of a longer cooperation between USAID, the Washington-based Better Than Cash Alliance and the Indian Ministry of Finance. It appers to be the core public driver pushing the agenda of the global “war on cash.”

India and the reckless (or corrupt) Modi government implementing the USAID-Better Than Cash Alliance agenda is clearly serving as a guinea pig in a mass social experiment about how to push the cash war in other countries. The Better Than Cash Alliance is described by the UNCDF, which is its Secretariat, as “a US $38 million global alliance of governments, private sector and development organizations committed to accelerating the shift from cash to electronic payments.”

The Better Than Cash Alliance website announces that the alliance, created in 2012, is a “partnership of governments, companies, and international organizations that accelerates the transition from cash to digital payments in order to reduce poverty and drive inclusive growth.” It’s housed at the UN Capital Development Fund (UNCDF) in New York whose major donors, in turn, surprise, surprise, are the Bill & Melinda Gates Foundation and MasterCard Foundation. Among the Better Than Cash Alliance’s 50 members are, in addition to the Gates Foundation, Citi Foundation (Citigroup), Ford Foundation, MasterCard, Omidyar Network, United States Agency for International Development, and Visa Inc.

Recently the European Central Bank, which has held negative interest rates for more than a year, allegedly to stimulate growth in the Eurozone amid the long-duration banking and economic crisis of almost nine years, announced that it will stop printing the €500 note. They claim it’s connected with money laundering and terror financing, though it ominously echoes the Modi India war on cash. Former US Treasury Secretary Larry Summers, whose shady role in the 1990’s rape of Russia through his Harvard cronies has been documented elsewhere, is calling for eliminating the US $100 bill. These are first steps to future bolder moves to the desired Cash-less society of Gates, Citigroup, Visa et al.

US Dual Standard: Follow the money…

The move to a purely digital money system would be Big Brother on steroids. It would allow the relevant governments to monitor our every money move with a digital trail, to confiscate deposits in what now are legal bank “bail-ins” as was done in Cyprus in 2013. If central banks move interest rates into negative, something the Bank of Japan and ECB in Frankfurt are already doing, citizens have no choice than to spend the bank money or lose. It is hailed as a way to end tax avoidance but it is far, far more sinister.

As Norbert Haering notes, “the status of the dollar as the world’s currency of reference and the dominance of US companies in international finance provide the US government with tremendous power over all participants in the formal non-cash financial system. It can make everybody conform to American law rather than to their local or international rules.” He adds, referring to the recent US Government demand that Germany’s largest bank, Deutsche Bank pay an astonishing and unprecedented $14 billion fine, “Every internationally active bank can be blackmailed by the US government into following their orders, since revoking their license to do business in the US or in dollar basically amounts to shutting them down.”

We should add to this “benevolent concern” of the US Government to stimulate a War on Cash in India and elsewhere the fact that while Washington has been the most aggressive demanding that banks in other countries enact measures for full disclosure of details of Swiss or Panama or other “offshore” secret account holders or US nationals holding money in foreign banks, the USA itself has scrupulously avoided demanding the same of its domestic banks. The result, as Bloomberg noted following the suspiciously-timed Panama Papers offshore “leaks” of May, 2016, is that the United States is rapidly becoming the world’s leading tax and secrecy haven for rich foreigners.

Perversely enough, in 2010 the US passed a law, the Foreign Account Tax Compliance Act, or FACTA, that requires financial firms to disclose foreign accounts held by US citizens and report them to the US IRS tax office or the foreign banks face steep penalties. The EU signed on to the intrusive FACTA despite strong resistance. Then, using FACTA as the model, the Paris-based OECD drafted an even tougher version of FACTA in 2014 to allegedly go after tax avoiders. To date 97 countries have agreed to the tough OECD bank disclosure rules. Very few have refused. The refusers include Bahrain, Nauru, Vanuatu—and…the United States.

World’s Biggest Tax Haven

You don’t have to be a rocket scientist, a financial wizard or a Meyer Lansky to see a pattern. Washington forces disclosure of secret bank accounts of its citizens or companies abroad, while at the same time lifting control or disclosure inside the United States of private banking accounts. No surprise that such experienced private bankers as London’s Rothschild & Co. have opened offices in Reno Nevada a stone’s throw from Harrah’s and other casinos, and according to Bloomberg, is doing a booming business moving the fortunes of wealthy foreign clients out of offshore havens such as Bermuda, or Switzerland which are subject to the new OECD international disclosure requirements, into Rothschild-run trusts in Nevada, which are exempt from those disclosure rules.

Rothschild & Co. Director, Andrew Penney noted that as a result, the United States today, “is effectively the biggest tax haven in the world.” Today Nevada, Meyer Lansky’s money laundering project of the 1930’s with established legalized gambling, is becoming the “new Switzerland.” Wyoming and South Dakota are close on the heels.

One area where America’s institutions are still world class is in devising complex instruments of financial control, asset theft and cyber warfare. The US War on Cash, combined with the US Treasury and IRS war on offshore banking is their latest model. As Washington’s War on Terror had a sinister, hidden agenda, so too does Washington’s War on Cash. It’s something to be avoided at all costs if we human beings are to retain any vestige of sovereignty or autonomy. It will be interesting to see how vigorously Casino mogul Trump moves to close the US tax haven status. What do you bet he doesn’t?

RBI: DeMo Disclosure Endangers Life, National Security

From Gulf-News:

India’s central bank refused to share specific details of Prime Minister Narendra Modi’s ban on high-value banknotes citing danger to life and national security, as the mystery deepens over who took the unprecedented decision.
The Reserve Bank of India recommended the move, which was accepted by the cabinet and announced by Modi on November 8, Power Minister Piyush Goyal told parliament in November. The RBI board approved the ban three hours before Modi’s speech and hadn’t discussed the matter before, a slew of responses to Bloomberg News’s Right to Information requests show.
However, the RBI told a lawmakers’ panel this week that the government had “advised” the monetary authority to “consider” the ban a day before the RBI board made its recommendation. The government then “considered the recommendations” and decided to withdraw the notes, culminating in Modi’s address that blindsided the nation.
The cloak of secrecy that has shrouded the currency ban decision is likely to bolster the view that authorities, both on Mint Street and in New Delhi, were not prepared for such a decision and the way it was announced. It risks undermining perceptions of the central bank’s independence and raises questions about Modi’s decision-making style and his communication with the RBI.
More clarity may emerge when RBI governor Urjit Patel deposes before a parliamentary committee on January 20. Details are essential to help assess the success of the shock move as well as gauge the impact of the decision on Asia’s No 3 economy.
“It is very perplexing that the RBI doesn’t answer questions about how the decision was arrived at,” said Shilan Shah, Singapore-based India Economist at Capital Economics. “There are concerns that in the whole process the RBI has been sidelined by the government and that raises questions about its independence,” he said, adding that authorities have not been transparent. Bloomberg News asked the RBI 14 questions between December 8 and January 2. The central bank as of January 11 had answered five, disclosing the date and time of the RBI’s board meeting and the fact that the board had never discussed demonetisation before November 8. It said it doesn’t have information to answer one question, on how many of the worthless notes have been deposited at commercial banks. It transferred two questions on printing of new notes to organisations that manage the presses. The RBI said that a question asking “what prompted the board to discuss and approve the withdrawal of notes” doesn’t come under the definition of “information” under the RTI Act. It provided different answers to a question asked three times, seeking details on board members who opposed the move. In two replies the RBI said “it is a matter of fact that the decision was unanimous.” In a separate response, it said “this information is not available on record.” To a question seeking details on the number of demonetised notes already at banks on the evening of Modi’s speech, the RBI claimed an exemption, citing danger to the life or physical safety of anyone who disclosed this information to the public. The RBI also claimed exemptions on two questions seeking detail on its preparations for the demonetisation and studies it used to forecast the impact of the move. Sharing these “sensitive matters” would endanger India’s sovereignty, integrity and security, according to the RBI.
The use of those specific exemptions are “perplexing,” Capital Economics’s Shah said. Shailesh Gandhi, a former bureaucrat with the Central Information Commission, told the FirstPost website on December 31 that the RBI’s attitude of stonewalling smacked of “sheer arrogance.”
“What the RBI is doing by refusing to answer queries under RTI is denying citizens their fundamental rights,” Gandhi said. Lawmakers are also seeking answers. Parliament was gridlocked as the opposition demanded discussions and voting on the measures, the Supreme Court is hearing petitions against the legality of the steps, and two lawmaker panels have sought explanations from the RBI.
The decision to demonetise was taken only when the stock of new currency notes was reaching a “critical minimum,” enough to meet a significant part of demand, the RBI told a panel in a note accessed by Bloomberg News. However, the currency swap was riddled with rule changes and data that analysts have questioned. Patel will depose before another lawmaker panel on January 20, which is expected to seek his view on the impact of the demonetisation on India’s economy.”

Crazy Like A Fox: RBI Figures Suggest Fraud Not Ineptitude

At newsclick.in someone crunches the numbers on the conflicting reports put out by the Reserve Bank of India’s on the number of new notes issued:

RBI’s figures on the number and value of new notes it has put in circulation do not add up. The discrepancy is of more than half a trillion rupees. Is RBI trying to deceive people by claiming to print more notes than it actually did? Or is the RBI, under the new governor, too inept to get its figures right?

[Lila: As I’ve blogged over and over, nothing about the chaos around DeMo indicates it was a blunder.  And if it is crazy, it is only the craziness of the fox. DeMo is planned chaos intended to conceal the insertion of fake currency, the funding of terror outfits, and the creation of fresh money-laundering opportunities – in short,  the objective of DeMo, as a black op, was THE DIRECT OPPOSITE OF MODI’S STATED GOALS.

It is a foreign-corporate attack on the country coming from the highest level, dressed up to look like a nationalist pro-poor policy. It enables gigantic corruption and terrorist-funding, while pretending to defend against corruption and terror.]

After demonetising the old Rs. 500 and Rs. 1000 notes, the RBI claims to have issued new notes worth 5.93 lakh crore. If we calculate the net value of the notes printed and issued by RBI, – as per their various press notes – we can account only for Rs. 5.27 lakh crore. More than half a lakh crore rupees – Rs. 63,000 thousand crore to be exact – are missing from the 5.93 lakh crore amount.  Simply put, RBI’s numbers just do not add up.

In December, RBI began releasing data on return of the old demonetised notes to the banking system, and also publishing data on the number and value of fresh notes issued to replace the old notes.

In a press note released on December 7th, (Interestingly, RBI’s 7th December’s press release has now been taken down) the RBI gives a break-up of the currency notes made available to the public between November 10th and December 5th. According to this, currency worth a total of Rs. 3.8 lakh crore has been issued out in this period. Rs.1.06 lakh crore was in notes of smaller denominations – the total number of these notes is 19.1 billion. The remaining amount comprised of Rs. 2000 and Rs. 500.

Again, on December 22nd, RBI released a press note , with a new set of figures.  According to the December 22nd note, between November 10th and December 19th, the central bank – the RBI — released currency worth total of Rs. 5.93 lakh crore to the public. The new press note also said that this amount was made up of 20.2 billion currency notes of smaller denominations, and 2.2 billion notes of higher denominations.

This means that, after December 7th, RBI gave out an additional 1.1 billion currency notes of smaller denomination (20.2 billion minus 19.1 billion). Even if, we were to assume that all these additional notes are in denomination of Rs.100, this would mean and addition of Rs. 0.11 lakh crore. This works out to a total worth of all smaller denomination notes issued as on December 22nd as Rs. 1.17 lakh crore: Rs. 1.06 lakh crore as per December 7th press note plus Rs. 0.11 lakh crore.

Out of the Rs. 5.9 lakh crore that RBI claims to have issued till December 19th, if Rs. 1.17 lakh crore is of smaller denominations, then Rs. 4.73 lakh crore would need to be in notes of higher denominations (Rs. 5.9 lakh crore minus Rs.1.17 crore).

RBI’s December 22nd press note states that it released 2.2 billion currency notes in high denominations. Even if all these notes were released in only Rs. 2,000 denomination, it totals up to only Rs. 4.4 lakh crore;  Rs. 33,000 crore remains unaccounted (Rs.4.73 lakh crore minus Rs. 4.4 lakh crore)

In fact, the missing money is likely to be much higher. We know that RBI has been releasing Rs. 500 notes along with Rs. 2,000 notes – even if in smaller amounts. In response to an unstarred question raised in Rajya Sabha on the composition of newly printed notes, the Minister of State for Finance, Arjun Ram Meghwal, on 6th December in a written answer provided figures that indicate that about 9% (in numbers, not values) of the newly printed notes supplied up to 29th November were in 500s, the rest in 2000s.

If we consider that 10% of the new notes of high denomination are now Rs. 500, and 90% are Rs. 2,000,  this works out to 0.2 billion as the number of Rs. 500 notes and 2 billion as the number of Rs.2,000 notes. This makes for a total of value of these notes to be Rs. 4.1 lakh crore: Rs. 4 lakh crore in 2000s and Rs. 0.1 crore in 500s.

The big question is, what happened to the remaining Rs. 63 thousand crore (Rs 4.73 lakh crore minus Rs. 4.1 lakh crore), which RBI claims to have issued to the public?

Is RBI trying to deceive people by claiming to print more notes than it did? ”

Cyprus II: Bill Puts Indian Depositors On Hook For Bank Failure

Meera Nangia, professor of commerce at the University of Delhi in The Wire:

“The declining profits are indicative of the persistent efforts by banks in the last two years to recognise the extent of irrecoverable loans. Simultaneously, banks are undertaking fresh initiatives to liquidate bad loan accounts. The government too is keen to facilitate this process of recovery from defaulting borrowers. The new Insolvency and Bankruptcy code was notified on May 28, 2016.

[Lila: Referenced in the Edmond de  Rothschild memo, previously mentioned here.]

Effectively, demonetisation has ensured that the cash lying outside the banking system (given our predominant cash economy and the parallel black economy) is now within the banking system, in the accounts of the customers to whom it belongs. The government campaign on digital payments is ensuring that banks remain flushed with liquidity. Liquidity implies that banks can keep a small ‘fraction’ of the deposits as reserve, and lend out the rest to credit-worthy borrowers.

However, credit off-take is likely to be slow since it will take time for the demonetisation hit economy to take off. It will take a long time for the banks to make profits that can completely wipe out the losses on account of NPAs. In the coming year, as banks net their losses, there will be greater clarity about the exact amount of fresh capital required by banks. The State Bank of India is already working out the scheme of a merger with its five associate banks subsequent to the cabinet approval in June 2016.

This brings us to the next logical question – where will this fresh capital come from? There are many options  – equity shareholders of the bank can invest further into the bank, the government can provide fresh capital, weak banks can be merged with strong ones, or in the worst case scenario, a bank can be declared insolvent (central government is empowered to declare state-owned or nationalised banks insolvent). However, it is not easy to find an investor for a failing bank. In case of liquidation, there are established principles regarding the priority in which losses are borne –secured creditors get the best deal, the unsecured creditor also bears the brunt of failure but the equity shareholders bear the maximum loss.

Perspective from international finance

In 2008, the global bank crises threatened the very existence of the financial system. Simultaneously, the outcry against ‘bail outs’ using public funds gained momentum. There could be no rational justification for the government to tide over irresponsible banks. Since then, there has been a sea change in the collective thinking of central bankers all over the world. The Financial Stability Board (FSB) was set up in 2009 to ensure that banks never fail.

It believes that a failure of banks destabilised the financial system and hence banks must never be allowed to fail. India, as a part of the G-20 group at the Brisbane summit in 2014, endorsed the FSB proposal ‘Key Attributes of Effective Resolution Regimes for Financial Institutions’ that recommends ‘bail in’ to ensure the stability of the financial system. The first test run of the bail-in strategy for insolvent banks was launched in Cyprus in 2013.

India does not have the complete legal architecture necessary to implement this new international standard. However the committee set up by the finance ministry to draft the Financial Resolution and Deposit Insurance Bill 2016 submitted its report on September 21, 2016.

The report acknowledges “the committee studied guidances issued by the financial stability board and to the extent suitable, drafted the Bill to be consistent with the key attributes given in those guidances.” It envisages the setting up of a Financial Resolution and Deposit Insurance Corporation (FRDIC) that have the objectives of contributing to the stability and resilience of the financial system, protecting consumers up to a reasonable limit and protecting public funds, to the extent possible.

In case a bank “reaches the stage of imminent risk to viability” the FRDIC will have, amongst other things, the power “to exercise any of the tools to resolve the firm – sale to another financial firm, the incorporation of a bridge institution, or bail-in”.

‘Bail in’ and the unsecured depositor

On the face of it, setting up the FRDIC appears harmless enough – a mere streamlining and simplification of existing procedures. In reality, it aims to reorient the role of the RBI from supervision and regulation to financial stability. Since the primary concern will be financial stability, the fiduciary responsibility of the RBI, presently endowed under the RBI Act 1934 to protect the depositor, is automatically curtailed. The RBI would be taking the path trodden by other central banks in the world who have sacrificed the interests of the depositors in favour of fellow banks and corporates.

The mechanism of ‘bail in’ is recommended when a bank has failed, but it must be saved since its services are considered necessary. Under the FSB proposal, the resolution authority also has the power to impose a moratorium and suspend payments to unsecured creditors. In simple terms, this means that the money belonging to the unsecured and uninsured creditor can be used to save a bank from bankruptcy. The failing bank can be recapitalised with depositors money and without their consent as well. The new enactment grants sweeping powers to the resolution corporation.

When we deposit money in a bank – seldom do we think of ourselves as creditors. In fact, we are unsecured creditors of the bank. In case a bank fails, we would lose our deposit because the bank does not give us any tangible security against this deposit. However, in India, the Deposit Insurance and Credit Guarantee Corporation insures our deposits to a maximum of Rs 100,000 per deposit account in a bank. So, if a customer has a deposit of Rs 150,000 in his bank account and the bank fails, then the excess of Rs 50,000 is uninsured and the customer has no legal remedy to recover this amount.”

Edmond De Rothschild: Modi Will Recapitalize Banks By March 2017

More proof that it was the Rothschild cabal, at the highest level of the globalist enterprise, that was behind Modi’s cash ban.

Not Modi, nor Obama, nor Delhi, nor the RBI, nor Washington, as the previous article I posted here suggested.

The cash ban came from the very pinnacle of the global financial markets.

The piece below is also proof that the ban had nothing to do with black money.

It was not even primarily about going to a cashless economy.

It is unlikely that even the Modi government is so out of touch with things as to believe that India is ready for such a transformation.

The ban was always an economic attack, intended to take money from the productive cash-based economy and give it to banks and big corporates (unproductive debtors).

It was intended to solve the problem of non-performing assets (i.e. bad debt).

The Rothschild memo adds to this. It explicitly urges the circumvention of the lengthy Indian legal process through bankruptcy courts, presumably after the model of the US.

Presumably, also, the new courts are to have much more leeway in deciding whose loans are to be written off and whose not, if the following is anything to go by:

Loans that were written off (Diageo-Mallya deal, February 2016, settlement funds going to Edmond de Rothschild account in Switzerland)   

Loans that will NOT be written off (SBI chief on farmers’ loans on Dec, 20, 2016)

Memo from the website of private banker and asset manager, Edmond De Rothschild Group (May 30, 2016):

The Indian economy has generated average real GDP growth of 6.5% in recent years. Yet the government is struggling to make significant headway in the area of structural reforms and this is preventing the country from realising its huge potential. Infrastructures by and large continue to creak, the labour market lacks flexibility and the financial markets need to be developed and opened further to international investors. When Narendra Modi became prime minister in mid-2014, it was hoped he would be able to make deep inroads with reforms, since he had gone on record as wanting to see India among the 50 business-friendliest countries in the world. Investors cheered this goal by bidding up the Bombay stockmarket, sending its valuation multiples soaring.

Subsequent events have reminded observers that Modi’s party does not wield a majority in the upper house of Parliament, where its bills often run into opposition. For example, the government’s flagship reform, a national goods and services tax that could boost GDP growth by 2%, has yet to be adopted.

However, the recently adopted Insolvency and Bankruptcy Code should breathe new life into India’s reform movement. It is meant to speed up the settlement of insolvency cases involving both companies and individuals. India has a sad history when it comes to settling and recovering on non-performing loans, an area where it still stands 130th in the country ranking compiled by the World Bank (see right-hand chart above). Insolvency proceedings drag on for an average of 4.3 years, with a recovery rate of just 25.7%. This is well shy of international standards. As a comparison, in China the process takes an average of 1.7 years, with a 36.2% recovery rate. The cumbersome nature and snail’s pace of debt collection in India has so far been due to archaic legislation, some provisions of which had not been revised since colonial times. This has actually encouraged debtors to drag their feet.

The new code, due to be signed into law in the coming weeks, will make it possible to settle insolvency cases in 180 days. During this period a committee of creditors will decide how to act on a payment default, i.e. by restructuring the debtor company’s liabilities or by winding it up. Creditors will moreover be classified, with senior debt taking precedence over subordinated claims. Moreover, insolvency cases will henceforth be overseen by bankruptcy courts, replacing the slower regular courts that have handled these matters up to now.

All this should have positive repercussions on India’s business climate by evening the balance of power between lenders and borrowers and by strengthening confidence on both sides. The Insolvency and Bankruptcy Code broadens the range of alternatives available to distressed companies, which will now be able to change their capital structure or reschedule their debt. This new-found flexibility should stimulate free enterprise at the local level.

From a more practical standpoint, dealing with bad loans quickly and effectively will not only reduce the portion of non-performing assets in banks’ balance sheets but also increase the supply of credit. At present nearly $150 billion of Indian banks’ assets are at risk (representing 10% of their combined loan books, including restructured assets). This weighs on their profitability and, worse, blocks resources that could be used to finance productive projects. The end result is a tepid investment cycle where money needed for infrastructure spending is in short supply.

The new code is also meant to help diversify the sources of credit available to borrowers, who are now 60% dependent on bank loans. The authorities’ objective is to encourage greater financing in the bond market and provide easier access to credit for smaller firms, which are often turned down by banks because of the higher credit risk involved.

Now the fanfare over the new legislation is fading, we should bear in mind that a whole ecosystem needs to be created. Setting up bankruptcy courts, training specialists and setting up databases to catalogue delinquent borrowers will all take time, meaning that the impact of the reform will only come in the medium/long term. Moreover, the recapitalisation of state-owned banks will be subject to the government’s budget restrictions.

Unlike China, however, India is developing a coherent process to address non-performing loans, a problem that is taxing its banking system. The Reserve Bank of India has set its sights high with the objective of weeding out and fully provisioning bad loans by March 2017. This clearly marks a major step towards expanding the country’s capital market, a vital effort in its economic development.

Defects In New Notes Enable Counterfeiting

The new $500 rupee notes are reportedly defective:

In its hurry to meet the demand for new notes, the Reserve Bank of India has made major errors which can have serious consequences for the demonetisation exercise. The gaffe — RBI has printed two variants of the new Rs 500 notes.

According to a report in The Times of India, the newspaper has seen at least three case studies where the new Rs 500 note varied from each other. According to one customer quoted in the report, Gandhi’s face has a more than visible shadow. Apart from this, he has pointed to alignment issues with the national emblem and also serial numbers.

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Reuters

Representational image. Reuters

Another Mumbai resident has told the newspaper that the colours of the notes he got were different. The report has cited one more such instance of variation.

Meanwhile, a RBI spokesperson has termed them as “printing defects” that have propped up because of “the current rush”. She has also said people can still freely use it for transactions or even return it to the central bank.

One thing is for sure: the same note with different features would mean confusion for the common man. It will be easy for the ‘experts’ in counterfeiting to cash in on this confusion.

How is the common man to know whether the Rs 500 note he has is indeed original or fake? It has to be remembered that the fake note circulation has been rampant in India despite the RBI’s frequent notifications on how to detect such notes.

Clearly, the awareness level among the general public about the security features of currency notes is very low. Notes with slight variations in features will only add to the confusion about the features.

Announcing the decision to withdraw Rs 500 and Rs 1,000 notes and issue new ones on 8 November, the prime minister had said that the move was aimed at destroying the counterfeit racket, ending terror funding and also stop black money generation.

If the haste has resulted in errors that will only facilitate counterfeiting, then it will kill the very objective of the demonetisation exercise.

[Lila: I beg to differ. It is very clear to me that the objective of demonetization was to attack and destroy the cash economy and facilitate further such attacks, requiring more and more digitalization and police state measures.]

Interestingly, the RBI had published on its site the security features of the new Rs 500 notes before the notes came into circulation.

It will be better for the RBI to find some practical solution to the problem before any damage is done.”

The defects in the news notes, added to the introduction of Rs 2000 note, as well as reports of new types of black markets emerging in relation to the note-ban, substantiate my theory that note-bandhi is a weapon OF the counterfeiters and of the black money of the global cabal.

It is intended to be used against economic and political opponents SELECTIVELY.

Thus, income tax raids have become a tool to crush selective mafias.

Most fascinatingly, THE ENEMY IS THE HINDU. 

This underscores once again that the elevation of Hindi and Delhi is an elevation (by the global corporatists behind Modi) of language and location, but not of Hindu religion and culture.

It is an elevation of the middle-class Hindi- speaking constituency of the BJP , not of Hinduism.

The ban on notes was intended to crush the black money channels of the political and economic competitors of the globalists.

But, it was also intended, it seems, to facilitate money-laundering and counterfeiting by the current government and its friends, hence the repeated back-tracking and confusion; the defective counterfeit detection machinery; the pressure placed on the banking system.

We saw the same sort of selectivity during the 2008 economic collapse in the US.

At the time, what the major media termed a bail-out and transfer of toxic assets turned out to be a form of inter-bank cannibalism, with the tax-payer footing the bill.

Something similar is at work here.

I firmly believe that the notes being inserted now will be counterfeited and that will compound the confusion about numbers coming from the RBI.

The chaos will make the insertion of excess notes very easy.

We could then have massive inflation, despite inflation-targeting policies on paper.

This will be more economic and financial war…terror…brought to the aam admi in India.

Indian Bankers Revolt Against Central Bank

Indian bankers are demanding the resignation of Urjit Patel, the RBI governor, who has been silent about the extraordinary measures taken on his watch:

“Holding Governor responsible for ineffective handling of the crisis post the drive, All India Bank Employees Association vice-president on Wednesday said that bank unions are adamant about their demand for the former’s resignations as well as lockdown of the apex bank.

Questioning the failure of the as the regulatory system, Utagi said that Patel, who hasn’t uttered a word till now, should resign with immediate effect.

“Since two weeks, the bank employees are working from eight in the morning till midnight including weekends. Still, there are truckloads of work to do. There has been absolutely no cooperation from the RBI’s side,” Utagi told ANI.

It added to the mess by banning cooperative banks from exchanging old notes or accepting deposits,” he added.

Stating that the present situation is a clear mess, Utagi further said that there have been one million employees at various banks who are working day in and day out in a situation characterised by a shortage of cash counting machines, fake notes detection machines and manpower security personnel.

The All India Bank Employees Association vice-president’s assertion come as a united opposition is cornering the government in Parliament and demanding Prime Minister to explain the rationale behind imposing such a decision.”

 

RBI Refuses to Release Minutes Of Nov. 8 Meeting

Business Standard:

The Reserve Bank of India (RBI) has refused to allow access to of meetings held to decide on the issue of of Rs 1000 and Rs 500 notes announced by Prime Minister Narendra Modi on November 8.

 

Responding to an RTI application filed by activist Venkatesh Nayak, the bankers’ bank refused to disclose the of the crucial meetings of Central Board of Directors on the issue of citing section 8(1)(a) of the transparency law.

 

The section exempts disclosure of information which would prejudicially affect the sovereignty and integrity of India, the security, strategic, scientific or economic interests of the state, relation with foreign state or lead to incitement of an offence.

 

Nayak said he will appeal against the decision, adding, “While confidentiality prior to the making of the decision is understandable, continued secrecy after the decision is implemented is difficult to understand when crores of Indians including this author have faced difficulties due to the shortage of cash in the economy.”

 

Rothschild 9-11-On India: Modi Ban Profits DE LA RUE

The income tax fine envisaged for Modi-backer billionaire Gautam Adani, 15,000 crores, is the same figure given for  replacing the banned currency.

Bizarre coincidence or proof of conspiracy?

Image result for rothschild major fronts

Cui Bono? (who benefits)

When analyzing Indian Prime Minister Narendra Modi’s infamous currency ban, this is the most pertinent question. 

Note: This post is a work in progress, so bear with me.

Here is the essence:

The Modi currency ban is not only part of the global war on cash.

It is  without exaggeration one of the most monstrous financial acts of any ostensibly constitutional government in recent decades.

For instance, see this excellent analysis.

From the Hindustan Times:

Samajwadi Party (SP) patriarch Yadav and Bahujan Samaj Party (BSP) chief Mayawati — bitter rivals facing tough assembly elections next year — seldom speak the same language on any subject.

But they were on the same page on Thursday against the Narendra Modi-led NDA government’s decision to pull 500- and 1,000 rupee notes out of circulation.

“The Modi government has slapped Emergency without sending people to jail and the BJP cares only about elections, not the problems faced by common people. The government has spread anarchy in the entire country, common man is not even able to buy daily products,” Yadav said.”

Far from being a war ON the black market, it is a war BY black money, an act of financial terror.

How so?

First, because the rise of Narendra Modi was possible only because of the public relations firm APCO, closely tied to global oligarch interests.

And second, because billionaire Gautam Adani (6th richest Indian billionaire, worth around $10 billion) financed Modi’s campaign and Adani is credibly reported to be involved in off-shore tax-shelter schemes. Adani’s own brother, Vinod, is named in the Panama Papers leak of off-shore tax schemes.

To clarify, APCO  was the firm brought in to gloss over the scandal attending giant oil company Yukos, a Russian state asset auctioned off to Russian J***** billionaire Mikhail Khodorkovsky, using shell companies, for a fraction ($309 million for a 78% share) of its real market capitalization ($6 billion).

APCO helped get Yukos and Khodorkovsky access to the Western political establishment and helped them cover up the fact that the oil giant operated through an elaborate system of shell companies that hid taxes from Russia for years.

Convicted of fraud and tax evasion by Vladimir Putin in 2005, Khodorkovsky passed on his shares in Yukos to co-ethnic Jacob Rothschild, of the legendary banking family, whose name is now short-hand for Western establishment and oligarch interests.

The same APCO that white-washed the legalized theft of Yukos was brought in to white-wash Gujarati strong-man Modi.

APCO’s name is derived from Arnold & Porter, a Washington DC law firm that is arguably the longest-lived foreign agent on US soil.

APCO and its sister company ASERO between them house many of the leading figures of the Israeli defense and security establishment, as well as of Homeland (US) security. Among them are retired officers of Mossad, Israel’s intelligence service.

Mossad, like MI6 , parts of the CIA,  and parts of RAW, is no more than the spy-agency of the global oligarchy. At the center of that oligarchy is the J*****/Khazarian banking family of Rothschild.

The same kind of schemes that hid Yukos’s operation from Russian taxation financed Modi, in the form of the Adani group’s campaign for Modi:

Ironically, the biggest black money case that has come up before the SIT so far is that of the Adani group, promoted by Gautam Adani, one of Modi’s closest associates. It is in his chartered aircraft that the soon-to-be prime minister zipped around India, accusing the incumbent government of not fighting corruption. The Adani group allegedly took out over Rs 5,000 crore to tax havens, using inflated bills for the import of power equipment from South Korea and China, the SIT on black money was told by the Directorate of Revenue Intelligence (DRI) and the Enforcement Directorate (ED).

According to a senior ED official associated with the SIT, if the Adani case reaches its logical conclusion, the group will have to pay a fine of around Rs 15,000 crore. ‘It is a watertight case,’ he said, about the trail of documents showing how the group diverted Rs 5,468 crore to Mauritius via Dubai. The Adani group vehemently denies any wrongdoing. Modi, after his rhetoric-filled ride to power, has been silent.”

Coincidentally, 15,000 crores is also the estimated cost of replacing the old currency bills banned by Modi.

Coincidentally,  Dubai is also the hub from which fake currencies are brought into India.

Coincidentally, Adnani is now partnered with Israeli high-tech security/defense firm Elbit-ISTAR in the production of unmanned (robot) drones.

Elbit systems is partnered with DHS (Dept of Homeland Security) in the US on the Mexican border, operating the first unmanned drone in the US and taking the lead in the creation of a virtual wall with Mexico.

No doubt Adani-Elbit drones will soon be policing the borders between India and her neighbors, if not between Indian states.  Leaked espionage cables published by Al Jazeera document that Elbit, like Israeli telecom company Amdocs and Israeli airline El Al, routinely assists Mossad.

Given these facts, the Modi currency ban is not economic policy by the Indian government so much as  financial “shock and awe,” enacted by the powers-that-be, fronted by a useful idiot.

It is a monetary 9-11 (or in this case 11/9 – the date the ban went into effect), against the legitimate economy of cash-based small-businesses, traders, farmers, laborers, and pensioners of India. And the globalists have fixed their signature numerals and even their calling card – a Trump – on the day.

Just to make sure the public gets this, the BBC, a well-known outlet for Western oligarch propaganda, even introduced the term “shock and awe” into this piece on the subject,admitting bluntly that Modi’s currency blitzkrieg was aimed at the small trader and small business classes who had voted for him. Because they do business mostly in cash, they pay little or no taxes.

But taxes are revenues for central banks. And central banks are ultimately controlled by the international financial system. And the ultimate beneficiaries of the international financial system (BIS, IMF etc) are the Western oligarchy and its global satraps.

To underscore the connection, it was under the headship of a son of the then BBC chairman, Marmaduke Hussey, that a British currency printer with ties to MI6 manufactured fake India currency notes that ended up in the vaults of the Reserve Bank of India (see further below in this post for details).

Knowing this, it is indisputable that Modi’s currency ban is economic warfare, intended to break the backs of small traders, businesses, and farmers, and steal their market for Western and Western- affiliated multinational e-commerce and retailers.

Unless reversed, it is the first act in the dekulakization of India.

Follow the money.

IMMEDIATE BENEFICIARIES OF MODI’S CURRENCY BAN:

De La Rue, Master Card, Visa, Paytm, cryptocurrencies like the mysterious Bitcoin,* Chinese fintech investors in Indian e-commerce, like Alibaba (a front for Western oligarchy), large corporations with card-swiping technology that most small businesses in India lack, Western e-commerce and Internet portals that can step up and fill in consumer demand, as indigenous small businesses disappear.

[Elsewhere on this blog, I have warned against using Bitcoin, which, like the heavily promoted Tor, has come out of Western security R&D and likely has back-doors for the globalist intelligence services.]

The Modi ban also sent Indians rushing to buy gold, which promptly rocketed in price.

Only a year ago, the government was vigorously beating the drum for people to deposit their gold in banks and get paid for it, at much lower prices.  One suspects that at the current high prices they have created, the government and its corporate cronies have auctioned their gold deposits and made a killing.

Isn’t that corruption?

De La Rue:

A new note (November 30) added here: De La Rue was the company chosen to supply currency for Libya in 2011 after the destruction of that country. CEO Tim Cobbold publicly stated that the company found regime change to be a lucrative opportunity. He also suggested that the break-up of the Eurozone would provide De La Rue a similar opportunity. This was only shortly after DLR manufactured fake currency was found inserted into the RBI vaulta and fake currency inflows had become a significant cause of massive inflation.

Another interesting fact that I found was that current RBI governor Urjit Patel, a Gujarati with an impressive resume in Western elite institutions and  an unusual (for RBI governors) corporate background that includes Reliance, and Gujurati businesses, is of Kenyan origin.  The Kenyan government apparently co-owns the branch of De La Rue that operates in its country.

How it benefits:

De La Rue is a British currency printer to whom, along with other British and German printers, printing of Reserve Bank of India notes has been outsourced, over Congress’ protests, since 1997.

According to the Panama Papers leaks by Wikileaks, De La Rue secured its Indian contract between 2002 and 2010 by paying a 15% commission (bribe) plus a one-time $712,000 to New Delhi-based Somendra Khosla.

Note: Khosla is a Khatri Sikh name.

[As I’ve documented amply on this blog, Sikhs have been working with the Rothschild oligarchs to destabilize India: the most notable examples being the Sikh murder of former PM Indira Gandhi and recently the fraudulent vendetta against prominent Indian-Americans by former Attorney-General for New York, Preet Bharara (half Sikh, with a J*****/Israeli born wife and J***** children). Bharara has allied himself with major NGO’s, like Safe Horizon, that are led by the Rothschild cabal.]

DLR is the world’s largest printer of commercial currency and the largest manufacturer of passports. It prints 44% of all banknotes world-wide.

It is currently seeking to become a one-stop shop for related services, such as verification, identity, and security systems related to passports and currency and involving the “substrate” on which they are printed.

This means DLR is involved in producing the very machines that test bank notes for fraud, while simultaneously manufacturing counterfeit currency.

That is probably why the fake currency passed the Indian government’s tests before being spotted by Indian intelligence.

The government of India banned DLR in 2011, because fraudulent notes generated by it but originally attributed to Pakistan, were found in regional banks as well in the RBI vault, by the Bureau of Intelligence in 2010.

The main conduit into India was through Kerala via Dubai.

An intelligence study in 2011 found the level of fake to genuine currency to be higher than in other countries, at 4 in 1000. This finding was in stark contrast to the RBI’s white-wash of the situation that put the ratio at 4 in 1,000,000, a thousand times lower.

Shockingly, Dela Rue was reinstated as RBI printer, without any evidence whatsoever to show why the ban was lifted.

The reinstatement was at the behest of the Prime Minister’s office.

The reinstatement seems to have been under the governorship of Raghuram Rajan (footnote 1) who later moved on to the Bank of International Settlements (BIS), the bank that acts as a reserve for central banks.

BIS itself is controlled ultimately by the Rothschild cartel. 

How much it benefits:

The banned  500 and 1000 rupees notes constitute  86% of India’s currency in circulation.

The Indian economy is comprised substantially of cash transactions and 98% of consumer transactions are in cash. The cost of replacing the currency is estimated at Rs. 15000 crores. Thus, replacing the old currency is a lucrative contract for the company tasked with the printing. The printing of RBI currency constitutes 30% of the profits of DLR.

Ownership:

Ownership is hidden.

Relationship to Rothschild oligarchy:

Current advisor: N. M. Rothschild.

In the late 19th century, the Rothschild family (Alfred Charles de Rothschild)  and the Bank of England were active in promoting the amalgamation of the three Presidency banks in India into one Central  Bank to “administer currency  regulations” and meet the “seasonal requirements of credit.”

That is, central banks were to print bank notes and pass laws on their issue….thus granting them unlimited power over the economy.

Related image

 

Long-time printer for national governments all over the colonial world, but barred from printing for Britain originally, De La Rue  has had a long association with MI6.

Founded in 1821 in Basingstoke, UK, by Thomas de la Rue, a  publisher (father, Eliazar de a Rue and mother, Rachael, nee Allez, of Guernsey).

De la Rue is a medieval French name  found in Normandy. The names Eleazar and Rachael speak for themselves.

UPDATE:

A site that I will not link to, seems to have sprung up in just the past few days, to put a novel spin on the information about De La Rue that is circulating on the net. The author claims that the Modi currency ban was a defensive move against a gigantic fake currency attack (an “economic Pearl Harbor” says the website) by Pakistan, also a target of the De La Rue fake notes. The site ends by claiming that anyone who opposes the Modi ban must be termed a traitor.

The Pakistani Pearl Harbor theory might hold some water for someone completely uneducated about the deep state – the spider-like web of connections between intelligence operations and criminal networks – that underpins the global polity.

Unfortunately, I’ve been around too long to believe that the ISI (Pakistani intelligence) is the primary mover in the region, rather than those that fund and instigate the ISI .

Two pieces of evidence will dispose of the notion that the Modi ban is a defensive move:

1.  The ban was the theme of  a Gujarat-based daily, Akila, whose editor later claimed it was an April Fool’s joke.

But Kirit Ganatra, the editor, is known to be a close friend of Modi’s.

2. There was a sudden surge in deposits (Rs 3,557 billion) at commercial banks between September 16 – September 30, 2016, following a slight dip in the weeks before.

More evidence seems to be in the offing:

1. Yatin Oza, the political mentor of BJP president Amit Shah and a former BJP MLA who is now with the AAP, has alleged with some credibility that he has proof of foreknowledge of the ban among Gujarat industrialists.

2. A TV journalist and investigator Satyendra Murali has collected evidence that Modi’s announcement of the ban was prerecorded. He claims to have received death threats on account of this.

But understanding the larger picture  is even more conclusive:

1. Anil Bokil of the Pune-based think-tank Arthakranthi has met Modi a few months back and suggested several reforms intended to change India into a cashless society. Among them was the banning of currency bills with a face-value of Rs. 1000, 500, and 100. Modi is reported to have been fascinated by his presentation.

Arthkranthi is likely a front for Western interests, like a lot of such NGO’s and think-tanks springing up of a sudden.

2. Moving to a cashless society is a long-term goal of the global elites and a ban on cash has been implemented in other countries recently, although none in the draconian and extreme manner of the Modi ban.

Like numberless trolls and disinformation agents on the net, the site proposing a “Pakistani Pearl Harbor” appears to have sprung to life solely to intimidate critics of the Modi ban.

All the more reason why rational and humane people must persist in educating people about what’s really going on, while they are still able to do it.

 

 

 

 

Footnotes:

  1. Rajan’s father, Govindrajan, is described as a diplomat, but was actually a member of RAW, India’s equivalent to the CIA, that, in the past decades, has often been penetrated/compromised by CIA agents, as well as by Mossad and MI6. Govindrajan was reportedly demoted by Rajiv Gandhi for failing to anticipate the Bofors scandal, according to some sites, and, according to others, for sending his son Raghuram  to study for his PhD at Chicago University with funding from CIA-tainted NGO’s. Rajan’s appointment to the RBI was greeted by the kind of adulation that the global media barons only reserve for their stooges.

David Cameron: Scion of Opium Barons

A post on David Cameron’s ancestral ties to the ruling elites by a blogger named Brian Akira was republished by conspiracy researcher Henry Makow, without an issue, but Akira’s blog has been archived or suspended for terms of service violations. Whether that has to do with the content he published or something else is not clear.

Here are the juicy details:

David Cameron’s forebears have a long history in financial racketeering. His great-great grandfather, Emile Levita, a German Jew, was related to the German-Jewish Goldsmid banking family, and obtained British citizenship in 1871. He was the director of the Chartered Bank of India, Australia and China.

The Chartered Bank of India, Australia and China was founded in London in 1851 following the grant of a Royal Charter from Queen Victoria. It opened its first branches in 1858 in Calcutta and Bombay and then Shanghai. The Shanghai branch of Chartered bank began operation in August 1858. Initially, the bank’s business was in large volume discounting and re-discounting of opium and cotton bills.

Although opium cultivation gradually increased in China, opium imports still increased by more than 50% between 1863 and 1888. Transactions in the opium trade generated substantial profits for the Chartered Bank and the Jews and Freemasons who controlled it.

Later, the Chartered Bank also became one of the principal foreign banknote-issuing institutions in Shanghai. In 1862, the bank was authorized to issue bank notes in Hong Kong, a privilege it continues to exercise to this day. Over the following decades, it printed bank notes in China and Malaya.

With the Rothschilds’ opening of the Suez Canal in 1869 (Jewish Prime Minister Benjamin Disraeli was accused of undermining Britain’s constitutional system, due to his lack of consent from Parliament when purchasing the shares with funding from the Rothschild Jews), Chartered was well placed to expand and develop its dope-running and other rackets.

Besides usury, the bank also dealt in cotton from Bombay, indigo and tea from Calcutta, rice from Burma, sugar from Java, tobacco from Sumatra, hemp from Manila and silk from Yokohama. In 1912, Chartered Bank became the first foreign bank to receive a license to operate in New York.

In 1927, the bank acquired 75% of the P&O Bank, which had offices in Colombo, Shanghai, Hong Kong, Singapore, and Canton. P&O Bank also owned Allahabad Bank.

In 1957, the Chartered Bank acquired the Eastern Bank, giving it a network of branches in Aden, Bahrain, Beirut, Lebanon, Qatar and the UAE. It also bought the Ionian Bank’s Cyprus Branches.

Chartered Bank merged with the Standard Bank of South Africa in 1969, and the combined bank became the Standard Chartered Bank. It’s motto is “Here for Good” so you know they’re evil.

Chartered Bank Director, Emile Levita married Catherine Plumridge Rée, the daughter of Hermann Philipp Rée (from an prominent Danish Jewish family.) Their children were Arthur Levita, Cecil Levita and Enid Levita.

Arthur Levita of Panmure Gordon stockbrokers, together with Sir Ewen Cameron (London head of the Hongkong and Shanghai Bank, and member of the Council for Foreign Bondholders and the Committee for Chinese Bondholders) played key roles in arranging loans from the Rothschild syndicate, including Jacob Schiff, to the Japanese central banker (later Prime Minister) Takahashi Korekiyo [????] to finance the Japanese war against Orthodox Christian Russia in 1905.  Cecil Levita was chairman of the London County Council. [DELETED] Enid Levita married Sir Ewen Cameron’s son.

Enit Levita is David Cameron’s paternal grandmother. His father, Ian Cameron, was a successful stockbroker, a partner at Panmure Gordon, like his father and grandfather.”

33% US Population On Government Welfare

Welfare statistics:

Welfare Statistics
Total number of Americans on welfare 110,489,000
Total number of Americans on food stamps 41,700,000
Total number of Americans on unemployment insurance 10,200,000
Percent of the US population on welfare 35.4 %
Total government spending on welfare annually (not including food stamps or unemployment) $131,900,000,000
Welfare Demographics
Percent of recipients who are white 38.8 %
Percent of recipients who are black 39.8 %
Percent of recipients who are Hispanic 15.7 %
Percent of recipients who are Asian 2.4 %
Percent of recipients who are Other 3.3 %
Welfare Statistics
Total amount of money you can make monthly and still receive Welfare $1000
Total Number of U.S. States where Welfare pays more than an $8 per hour job 39
Number of U.S. States where Welfare pays more than a $12 per hour job 6
Number of U.S. States where Welfare pays more than the average salary of a U.S. Teacher 8
Average Time on AFCD (Aid to Families with Dependent Children)
Time on AFDC Percent of Recipients
Less than 7 months 19%
7 to 12 months 15.2%
1 to 2 years 19.3%
2 to 5 years 26.9%
Over 5 years 19.6%
Top 10 Hourly Wage Equivalent Welfare States in U.S.
State Hourly Wage Equivalent
Hawaii $17.50
Alaska $15.48
Massachusetts $14.66
Connecticut $14.23
Washington, D.C. $13.99
New York $13.13
New Jersey $12.55
Rhode Island $12.55
California $11.59
Virginia $11.11

The Kotex-Industrial Complex II

Update 3: Vikram Gandhi, Kiran’s father, also has this on his resume:

Vikram is also a member of the Bretton Woods Committee, Washington DC, which plays an important role in promoting economic growth, reducing poverty and maintaining global financial stability.”

The Bretton Woods Committee is an annual meeting of  the leading figures of the financial world and the world of international policy-marking.

Gandhi is listed with his financial firm, VSG Capital Advisors.

Vikram Gandhi also leads Asha Impact, a non-profit involved in “impact investing,” which is another trendy term for investing in social uplift schemes, where there is a higher risk involved and a longer term horizon for returns.

 

Update 2: Kiran Gandhi’s father is Vikram Gandhi, an investment banker, whose professional background is described as follows on Wikipedia:

After a successful career in investment banking spanning more than two decades in New York and Hong Kong, he decided to return to India with the desire to actively participate in the development and growth of his country. [3] He also served as Vice-Chairman at Credit Suisse,[4] Co-Head of Global FIG at Morgan Stanley,[5] Country Head and President of Morgan Stanley India, Founding Member of Harvard University’s South Asia Initiative,[6] Co-founder of The Giving Back Foundation, Board Member at India Inclusive Innovation Fund – a US $1 billion Venture Capital Impact Investment Fund and Board of Director at Grameen Foundation appointed by Nobel Peace Prize winner Muhammad Yunus.[7]

He is also the member of Standing Council of experts to assess and make recommendations regarding the international competitiveness of Indian Financial Sector by Department of Finance, Ministry of Finance, Government of India.[8]

Vikram Gandhi and his wife have positioned themselves to profit from the growth in disposable income in the emerging markets.

With their clout in international financial circles, they stand positioned to influence the Indian government’s policies on international financial flows and investment.

There’s free-bleeding here, alright. But it’s not from Kiran Gandhi.

It’s from the Indian economy, the tax-payer (a small and brutalized class in India), small businessmen, and consumers, to Western investors.

“Free-bleeding” is marketing hype and just one more example of MANAGED capitalism at work.

Update 1:

Kiran Gandhi’s mother is Meera Gandhi (who is half Irish). She holds an MBA and is the CEO and founder of the Giving Back Foundation.

Private foundations have long been a favorite tool for the pursuit of long-term financial interests of families, circumventing government taxation and scrutiny.

Here are some of the charities that Gandhi’s Foundation supports:

Gandhi has supported charities with strong female leadership programs and workshops, in part because of the role models in her life: Hillary Clinton, Cherie Blair, and Gandhi’s own mother, an Irish woman living in India. These charities include the Cherie Blair Foundation for Women in the United Kingdom and the Eleanor Roosevelt Leadership Center in the United States.[5]”

and

Other charities Gandhi is involved with either directly or through her Foundation include the Happy Home and School for the blind in Mumbai, the Robert F. Kennedy Centre for Justice & Human Rights, the Cambodian Landmine Relief Fund, Centrepoint, Give to Colombia and The American Friends of Prince William and Prince Harry.[9]

That is the second direct link to the British ruling family (intermarried with the Rothschilds). The first one is Prince Charles’ leadership role in Water Aid, the NGO which was instrumental in making “free tampon distribution” government policy in India.

The Giving Back Foundation lists as its partners and affiliates a powerful group of non-profits (the ones in red are those which struck me the most):

Aid for Aids InternationalAlways Dream FoundationAsha Dan (Mother Teresa’s homes for orphans);  Asha FoundationAsia SocietyAUW (Asian University for Women Bangladesh);  Birch Wathen Lenox School (Aids);  Bono One/Red (Aids);  Boston University (graduate grant programs for travel and work);  Brain Trauma Foundation Brown University;  Cambodia Landmine Museum and Relief FundCancer Patients Aid AssociationCentrepoint (Friends of the Foundation of Prince William and Prince Harry);; Cherie Blair Foundation For Women;   Children’s Hope India in New York City;  Clinton Global Initiative;  Crafts CenterCRY (children’s rights);  Donna Karan’s Urban Zen (connects and collaborates in well-being, preserving cultures and inspiring changes);  Eleanor Roosevelt Leadership Center (ERLC);  FERI (Franklin Eleanor Roosevelt Institute;  Foundation Reach and Heal ProgramGlobal Ovarian CancerGrameen (microcredit financing);  Habitat for Humanity (building homes for the poor);  Happy Home and School for the Blind, Mumbai;  Harrow SchoolHema DoraHip Hop Youth Summit Council (bringing back literacy to young people in the Hip Hop culture);  Human Rights Watch;  I Create (children’s rights);  Indian Merchants’ ChamberInnocence in Danger (for abused children);;  Kalashiri School of ArtsKhel Shala PunjabKids for Kids in Hong KongKilkenny Day Care Center (Alzheimer’s Disease in Ireland);  Lavelle and Co. Girls’ Mentoring;;  Lighthouse For The BlindLoomba Foundation (assisting widows);  Mane AmericaMotor Neuron Disease AssociationNew York City BalletNew York Society for the Prevention of Cruelty to Children (promoting family and education);  One To World (Fulbright) (bringing together diverse people);  The Play CompanyPratham (program for street children in India);  Resolve The National Infertility AssociationRFK Center for Human JusticeRoyal National Institute of the Deaf, (assisting the deaf in the UK);  Same Sky (educating village children in Africa);  Scenic HudsonSt. Michael’s Girls Hostel and School, Delhi;  Tails of Hope (eradicating diseases affecting companion dogs);  Thorntree (education for village children in Kenya);  Tiger TimeTropical Clinics, Kenya;  United World Colleges/Pearson School (bringing together diverse students);  Vendanta Academy in IndiaVersailles FoundationWaterkeeper AllianceThe Wayuu Taya Foundation (educating indigenous tribe in Venezuela;  Women’s Education Project;  and The Woodstock Film Festival among others.

 

ORIGINAL POST

Following up on my previous post about the Menstrual Meme that’s being pushed by the alternative media, I  took a look at the commercial interests behind the scenes.

Which company could be hooked up with the US government  back-stage of the Menstrual Meme?

Kiran Gandhi has come out endorsing “Thinx” (which is apparently the brain-child of another Indian-American, Miki Agrawal).

That’s why Gandhi is determined to raise awareness both of period shaming and lack of access to feminine products in developing countries. She’s now partnering with Thinx, a period underwear company that helps women stay dry while on the go, and AfriPads, which makes low-cost, reusable sanitary pads out of Uganda.”

Thinx donates to Afri-Pads for each sale it makes in the US. Both are attempts to compete for the $15 billion a year female hygiene industry:

In Uganda, Canadian Paul Grinvalds and American Sophia Klumpp believed that a reusable menstrual pad could be manufactured locally. The pad could be made to last a year or more with only hand washing, and be affordable to almost all Ugandan girls and women.

Following a pilot project in early 2009, a Dutch private equity investor saw the business and social potential of the idea. The investor, along with several others, provided the necessary capital—and AFRIpads was born. A.T. Kearney has supported the startup on a pro bono basis ever since.

Today, the company operates two factories with a combined staff of 60 employees, mostly rural Ugandan women, and is in talks to ship products in bulk to major nonprofit organizations, including World Vision, War Child Holland, United Nations International Children’s Emergency Fund (UNICEF), Rotary International and United Nations High Commissioner for Refugees (UNHCR). As AFRIpads grows, it plans to build its own distribution network and sell directly to consumers.

The demand for such a product in Africa and across the developing world is undeniable. A recent Credit Suisse economic study finds that 53 percent of the almost 700 million Indian women who earn less than $1,000 per year are likely to spend more money on menstruation hygiene products in the next 12 months, and similar spending trends are expected in China, Egypt and Saudi Arabia.

– See more at: https://www.atkearney.com/executive-agenda/full-article/-/asset_publisher/0HoTu01PO8ov/content/how-the-worlds-5-billion-low-income-consumers-decide-what-to-buy/10192?_101_INSTANCE_0HoTu01PO8ov_redirect=%2Fexecutive-agenda%3Fp_p_id%3D122_INSTANCE_jqt57fHXS44U%26p_p_lifecycle%3D0%26p_p_state%3Dnormal%26p_p_mode%3Dview%26p_p_col_id%3Dcolumn-3%26p_p_col_count%3D1%26p_r_p_564233524_resetCur%3Dtrue%26p_r_p_564233524_categoryId%3D267095#sthash.0PoXwdZM.dpuf

 

In addition, the “free-bleeding” movement has been pushing LunaPads, which makes reusable products for developing countries and also makes Diva Cups, which the media has been pushing through activist blogs.

When you read LunaPads’ site, you notice that Kofi Annan has endorsed them and that they work with NGO’s in dozens of developing nations:

Since its inception, in partnership with dozens of groups, individuals, and NGOs, Lunapads has helped provide over 14,000 girls and women in 17 nations with over 85,000 menstrual pads and/or menstrual underwear, giving them an immediate, essential and sustainable means to remain in school or at work. In addition to working closely with AFRIpads to support our One4Her program, we are also shareholders of AFRIpads, which has supplied over 500,000 girls and women with their reusable sanitary pad kits.

Visit our blog and read the PDFs below to learn more about the impact of out work with Pads4Girls.

UNITED GIRLS OF THE WORLD

In 2014 Pads4Girls joined United Girls of the World, a non-profit society also under Madeleine and Suzanne’s leadership. United Girls has a broader mandate, to assist in the area of critical issues affecting girls and women around the world, empowering them by providing the tools they need to develop positive self-esteem. Please visit the United Girls of the World website to learn about our other programs such as G Day for Girls.

DONATE TO PADS4GIRLS

To help us continue our work with Pads4Girls, please make a donation at the United Girls of the World website.

TAX RECEIPTSIf you are in Canada and would like to receive a Charitable Tax Receipt (for donations greater than CAD$25), please make your donation online at the Tides Canada Foundation. We are unable to issue Charitable Tax Receipts to US donors, unless they are greater than USD$1,000. If you are located in the US and would like to make a donation greater than USD$1,000, please contact us via email to make arrangements.

PADS4GIRLS DISTRIBUTION GROUPS

Pads4Girls has partnered with many different groups over the years to bring washable cloth pads to girls and women in the developing world, including:

So a whole network of influential and well-funded NGO’s distributing free reusable tampons in developing countries is behind the “Menstrual Meme”.
As non-profits, these NGOs encourage the public to donate to what they’re doing, the donations  being tax-exempt.

At the same time, at least one of them – AfriPads, which calls itself a “social business’ – has “shareholders” (people invested in the outfit) who belong to the company (LunaPads) that is selling products at a profit in the West.

Behind AfriPads are wealthy Dutch investors hoping for long-term returns.

Thus the “non-profit,” “social-service” angle acts as an excellent marketing tool for a Western for-profit company that is competing in the market in Asia and Africa, which is why Kiran Gandhi’s face is on the campaign.

Now, why not, if there is such a market?

Nothing wrong, if  these tampon companies were really competing, without the support of a manipulative, possibly intelligence-run campaign, demanding government subsidies and privileged treatment in the Western and Indian market.

How privileged?

Consider that LunaPads claims to be a private outfit, but it’s tied to heavily-subsidized NGO’s and social businesses that are using government and the media to push its interests.

At the same time, the government has been taxing their private competitors (Always and Kotex, for example), as non-essential.

Note: Earlier this year, after public pressure, the UK and Canadian governments both lifted the tax on sanitary products (hitherto described as “luxury” goods).

Now these two companies (Always and Kotex) may indeed be making sub-standard products, but that is for the market to decide.  The larger companies themselves, J&J in India, for instance, have benefited from private-public partnerships. The newer “green” companies are trying to get in, also in partnership with the governments, NGO’s, and international finance.

There’s also another, bigger problem.

On the other side of the equation, local Indian producers, like Arunachal Muruganathan, who put years into developing a cost-effective sanitary napkin that he sells in India, face subsidized competition from abroad and neglect from their own governments:

Muruganantham seemed set for fame and fortune, but he was not interested in profit. “Imagine, I got patent rights to the only machine in the world to make low-cost sanitary napkins – a hot-cake product,” he says. “Anyone with an MBA would immediately accumulate the maximum money. But I did not want to. Why? Because from childhood I know no human being died because of poverty – everything happens because of ignorance.”

He believes that big business is parasitic, like a mosquito, whereas he prefers the lighter touch, like that of a butterfly. “A butterfly can suck honey from the flower without damaging it,” he says.”

But, it seems when the Indian government, which, like Western governments, is now in the feminine hygiene business, set out to look for a partner, they didn’t pick Muruganantham, even though he won national recognition from the IIT’s (the prestigious technology institutes of the public sector) and from the government itself.

Instead, the Indian government picked partners from big business:

According to P C Vinoj Kumar, a journalist who was until recently working for Tehelka, the two major players in the Indian sanitary napkins market are P&G (who own the Whisper brand) and Johnson & Johnson (who own the Stayfree & Carefree brands). He says that the Government will most likely strike a public private partnership with them or a third player, Kimberly Clark Lever (a JV between Kimberly Clark & Unilever).

“What really ticked me off was when I heard that the Government was providing these napkins at a highly subsidized rate. This would mean that it would buy those napkins at a higher cost from elsewhere. What is the need of that, when my technology provides with a similar product at a cheaper price and at the same time generates a lot of rural employment,” says Muruganatham. Muruganatham laments that the newly announced central government scheme apart from involving a lot of corruption, will effectively kill an innovation that has the potential of providing employment to millions of Indians, especially women.”

How did that happen?

As always, the finger-prints of the Western ruling class can be spotted in the whole business.

First came the international intervention, with a foreign NGO’s pronouncement:

The surveys conducted by Unicef with the help of Nielsen India Private Limited and social organisations Vatsalya and Water Aid revealed that over 85% girls used old tattered clothes during menstruation. Almost half of the girls did not even wash the old cloth before using it, while an equal number re-used the cloth several times.”

Checking out Water Aid’s Wikipedia page, I find that it was set up as a charitable trust by none other than the UK’s “water industry.”

The charitable trust structure is the usual  – and legal – method whereby private interests can protect themselves from taxation.

Water Aid’s creation was in response to the UN’s Drinking Water & Sanitation decade (1981-1990) and its first president was Prince Charles, from the ruling Windsor family that is intermarried with the Rothschilds.

Water-Aid could not be any more obviously a face of the global world order.

And it is Water-Aid that has promoted the notion that the Indian government should have a program for free tampons.

That seems to explain why the Indian government didn’t partner with a local actor.

[Note: I don’t believe the government should be in the business of feminine hygiene in the first place.]

Likewise, in Africa, the Western NGOs’ are competing against local small businesses that are supplying the market, as well as against the big foreign brands, on which wealthier women have come to depend:

 Such projects haven’t been snag-free: Komera found Rwandan women were skeptical about the quality of cheap, locally-produced pads which didn’t look much like the imported brands they knew. Laadli has been excluded from the Indian government’s subsidised pads programme..

Worst cyber-crime is in US, Russia

As I blogged yesterday, the IP addresses attacking me trace back to a Netherland hosting company called Ecatel Network.

ECATEL NETWORK

Ecatel has become notorious for hosting bad actors, from the Russian spammers to pedophile networks.  It also has a reputation for brushing off requests for help from the victims.

Trying to figure out what was going on, I did a bit of research into the world of cyber-crime.

AKAMAI REPORT – CHINA LEADS CYBER-CRIME?

The mainstream media likes to portray cyber-crime as essentially a foreign threat. China, especially, is fingered as the bad guy.

For instance, in January,  US-based Akamai Technologies issued a report  placing China at the head of global hacking, responsible for 35% of cyber-attacks world-wide.

More recently,  the US government pressed cyber-warfare charges against five of China’s army officers.

Nigerians scamsters are rumored to run a close second.

There are two things wrong with this picture. The first is the source of the information.

Akamai Technologies is a “content-delivery network” head-quartered in Cambridge, Massachussetts.

It was founded by an MIT applied math professor, Tom Leighton, and a graduate student at MIT, Daniel Lewin, later killed on AA flight 11, which crashed during the September 11, 2001 attack.

According to his MIT bio, Leighton is a specialist in cryptography,  digital rights, and algorithms for network applications. He also chaired a Presidential committee on Cyber-Security.

Akamai’s co-founder,  COO, and President was the founder of the Road-Runner cable service. Its CEO was a senior VP from IBM.

Akamai’s privacy policy states that it collects IP addresses and effectively tracks clients.

Its partners include Microsoft and Apple and its clients include the BBC, the White House,  Facebook, Twitter, Adobe Systems, Netflix, Yahoo, ESPN Star (India),  China Central Television and Al Jazeera, among many others.

How likely is it that reports from Akamai on cyber-crime are untouched by political pressure?

WORLD HOSTS REPORT –  US, RUSSIA LEAD CYBER-CRIME

Point two. The statistics don’t support Akamai’s pious propaganda.

The Chinese do indeed have a very high number of IP addresses attached to their malicious activity. If sheer volume were the only criterion, China would dominate.

However,  as far as the number of malicious sites and the level of threat involved, the world’s leading cyber-criminals aren’t Chinese.  Not even close.

They are in the US and in Russia, closely followed by smaller countries like the Netherlands, the Ukraine, and Romania.

In Host Exploit’s authoritative World Hosts Report of March 2013, five of the top twenty  malware hosts were based in the US; four were in Russia, two each in the Netherlands, Germany, and the Ukraine.

Chinanet Backbone was the only host from China that made the top twenty.

What was especially interesting to me was to find the originator of the attacks on my computer, Ecatel network, at the top of the list of the world’s leading hosts for malware.

Host Exploit also breaks down cyber-crime by country, with Russia leading the pack.

This is its list of the world’ top ten cyber-crime havens in 2013:

1. The Russian Federation (RU)

2. Belarus (BY)

3. Ukraine (UA)

4. The British Virgin Islands (VG)

5. The United States (US)

6. Romania (RO)

7. Netherlands (NL)

8. Poland (PL)

9. Turkey (TR)

10. Bulgaria  (BG)

 

Bubble, bubble, toil and trouble: Mt. Gox goes poof!

Mt Gox has gone bust.

Ahem.

We’ll take a quick bow (along with Gary North, Robert Wenzel, Bionic Mosquito, and several others).

We Bitcoin-deniers stood our ground in the face of relentless and shameless]pumping, supported by rent-a-libertarians, like the former chief editor of the Daily Reckoning, Joel Bowman and shameless other opportunists

[On rereading this, I think I want  soften my tone, since the anti-BTC’s have been proved by events.[

See the two MBP posts below:

BTC: My Comments at EPJ

Bitcoin: My Comment at EPJ and Block’s Reversal

See also the following anonymous comments at EPJ in December and November 2013:

My comments are anonymous, because I was worried that the elites might attack people who criticized BTC, just as they trashed Assange critics all over the net:

Comments at EPJ on December 3

 

  1. Anonymous (Lila )
  2. Stick with Gary North, Wenzel.

    Better the known devil than the unknown.

    And talking about unknown devils, who is this Paul Rosenberg from Cryptohippie?

    Who owns Cryptohippie?

    Might they have connections to TOR, Wikileaks, Assange, and/or the Internet billionaires (Zuckerberg, Brin, Thiel, Omidyar)? If so, can DARPA be far behind?

    How would we know since Bitcoin is so mysterious……

    In fact, how would we know if Bernanke himself wasn’t moonlighting as an “anti-Fed” bit-coiner?

    Answer is we wouldn’t.

    Also, what reason could there be for the inventor of an invention of this magnitude (purportedly) to coyly refrain from taking any credit or recognition?

    Another question, why does Julian Assange tout it?

    These are the things which must be investigated before anyone other than fools and gamblers will go near this scheme.

    Anonymous (Lila Rajiva)
  3. Maybe they gain something personally from promoting Bitcoins? Credibility with the hacker-anarchist world, for instance. Maybe even money. How do you know?

    It takes a big person to stick to his guns, even when peer pressure might suggest otherwise.

 


 

Comments at EPJ on December 12:

 

  1. Anonymous (Lila)
  2. @anonymous

    I don’t have time to refute step by step.
    Just the obvious points.

    You claim bitcoin allows you to transfer any amount of wealth anywhere in the world almost instantly and almost free.

    Actually, you can already do that with an ACH transfer (upto 10K), wire transfer ($25 for any sum) cash (as much as you can stuff undetected into your suitcase or cash cards. You can also do hawala.

    The limits in all these cases don’t arise from the medium, but from government restriction, which could be enforced much more thoroughly through BTC than by other means.

    Second. Bitcoins aren’t “free.” They require not only a very good computer, but an excellent internet connection, encryption of a very high order not only for the connection but for the hard drive.. and considerable technical knowledge to thwart the net-savvy people who swarm around bitcoin users.

    None of that is free or widely prevalent.

    In most countries, you don’t even have good enough internet.

    Plus, all of it can be snooped on and shut down.
    That is just one objection out of dozens I could raise.

    Reply

 

1.  Nov. 25, 2013 comments at EPJ

 

  1. Anonymous (Lila)
  2. Shame on anyone who is so credulous to believe this is the “free market” at work.
    Shame on anyone who supports this kind of elaborate con played by the very cartels that anarchists are supposedly fighting.

    Bitcoin is a Rothschild-backed intelligence-funded pump-and-dump. The purpose is to destabilize the dollar and provoke demand for a global single currency.

    It is the global elite-backed “controlled opposition,” using spokesmen from the CIA-infiltrated/ hard-money or “libertarian” community. The ones pitching it will make money as the proles rush in.

    It is easily tracked, easily gamed.
    More so than the dollar or gold.

    This massive swell of interest and pumping by all and sundry is a sure sign of intel involvement.

  3. People promoting this might as well have INTEL stamped on their forehead.
  4. Or FRAUD.

 

Anonymous (Lila)

 


 

 

@Philip, Anonymous, edward.

 

Intelligence and government are multi-layered, not unitary.

 

The right hand doesn’t know what the left hand is doing. Sometimes even the left hand doesn’t know. Just a finger or a nail knows.

 

Intelligence might take a while to understand the potential in something their scientists come up with. So it might take a year or two or more. Then they embrace it.

 

The MSM media is brain-washed one way – the obvious mainstream, Keynesian brainwashing.

 

The alternative media, including hard money people, are past the mainstream brainwashing, but they fall for the second-level brainwashing – they fall for Snowden, Assange, Hacktivism, Crypto-currency, Wikileaks, and all such black operations, meant to appeal to gullible, egoistic anti-govt types.

 

There are legions of agencies involved who profile dissent and come up with the red herrings that will be swallowed by the maximum number of fools and opportunists.

 

The economic dissenters trust their hard-money gurus, but that crowd is filled with two-bit cons who will fit their agenda to whatever the intelligence agencies tell them.

 

Please go back and look at when Bitcoin mania started and look at who has promoted it.

 

Be wise as serpents, my friends. Wenzel’s instincts are right. I hope he will not be dazzled by Mayer’s “expertise” and misled into supporting this con game.

 

As for sources. Do some research directly yourself and see what you find.

 

Reply

 

their ‘endgame’ …. .

 

 

Anonymous (Lila)

 

 

@Phil McKreviss, EndtheFed,

 

There are a few libertarian (rightist and leftist) blogs where Assange and Snowden have been deconstructed thoroughly. No need to reinvent the wheel here. Let your fingers take a walk and you will see that they are both mouthpieces for the global elites.

 

Some reliable sources you could read: Cottrell, Rappaport, Creighton, Rajiva, Madison…off the top of my head.

 

China – China is a COMMUNIST country, my friends. Goldman Sachs has a big presence there.

 

End-game is control – maximum control over your assets, your money, your movements, your writing, your thoughts – so they can harvest it all for themselves.

 

The elites would be gods…and for that, they need for you to be less than men. They need for you to be little BITS of a machine.

 

Read everything critically, inwardly, not in this trusting fashion.

 

Rest assured, when something shows up on the internet, with this much fanfare, the elites approve.

 

Freedom is hard.

 

It will not come without sacrificing some time, effort and along the way, some favorite delusions and consolations too.

 

Biggest delusion is to believe that there is any quick simple remedy whereby you get to make a ton of money quicker and liberate “the world” too.

All that is Grimms Fairy Tales in a special edition for libertarians.

Who has the gold?

Came across this tidbit recently:
(Haven’t tried to verify its accuracy..just passing it along, since there was recently a debate among some Austrians and their detractors about whether the Rothschild controlled the gold market)

The Missionary Review of the World, Volume 29, printed in 1906 disclosed:

“The Possession of Wealth: One Jewish banking house is estimated to control $30,000,000,000. The Rothschilds in ten years loaned $482,000,000. Nearly one-half of the gold coined, of the entire world, is said to be in Jewish hands.”

How they figured that out is a bit mystifying, but there it is.

And more on the Rothschilds:

Dutch economist Ad Broere, in his 2010 book “Ending The Global Casino,” informs us that,

“The 19th century became known as the age of the Rothschilds when it was estimated they controlled half of the world’s wealth. While their wealth continues to increase today, they have managed to blend into the background, giving an impression that their power has waned. They only apply the Rothschild name to a small fraction of the companies they actually control.”

The Ronald Reagan of Colombia?

At The Daily Bell, Ron Holland describes Colombia’s Alvaro Uribe as a Latin “Ronald Reagan.”

Unlike knee-jerk leftists, I recognize that Reagan started out with some genuine free-market leanings. Contrary to the mythology, he was well-informed about economics. And he was a realist dove, not a neo-con hawk:

Mehdi Hasan at the Guardian:

“As the liberal US writer Peter Beinart argues in his book, The Icarus Syndrome: A History of American Hubris: “On the ultimate test of hawkdom – the willingness to send US troops into harm’s way – Reagan was no bird of prey. He launched exactly one land war, against Grenada, whose army totalled 600 men. It lasted two days. And his only air war – the 1986 bombing of Libya – was even briefer.”

In contrast, consider the blood-spattered record of his successors. George Bush launched Gulf war I and sent troops into Panama and Somalia; Bill Clinton bombed Iraq, Sudan, Afghanistan and Yugoslavia; George W Bush invaded Afghanistan and gave us Gulf war II and the war on terror. And the Nobel peace prize winner Obama had troops surging in Afghanistan, launched a war on Libya and sent drones into Yemen, Somalia and Pakistan.

Lest we forget, after America’s first encounter with jihadist violence in 1983 – when 241 US military personnel were killed – Reagan, to use the disparaging lingo of the neocons, chose to “cut and run”. Every single soldier was pulled out of Lebanon within four months. “Perhaps we didn’t appreciate fully enough the depth of the hatred and the complexity of the problems that made the Middle East such a jungle,” Reagan later wrote in his memoir, adding: “The irrationality of Middle Eastern politics forced us to rethink our policy there … If that policy had changed towards more of a neutral position … those 241 marines would be alive today.”

These are the words not of a hawk but of a dove; of a leader who did not share the neocons’ blind faith in the use of military force to spread freedom.

The truth is that Reagan wasn’t a Reaganite; he ended the cold war through negotiation and with far fewer military interventions than his successors have managed so far in the war on terror. His actions, rather than his occasionally bombastic words, reveal a president more interested in jaw-jaw than war-war.”

But, by the second half of his presidency, the shadow state had taken over. Neocons had infiltrated the offices of the executive, were conducting espionage, pulling strings to overcome  security blocks, and pushing agendas developed in their think-tanks.

Stephen Green at Counterpunch describes the decades-long take-over that started in the 1970s, accelerated in the second half of the Reagan administration, and came to full flower with Bush junior. The main figures are people like Richard Perle, Frank Gaffney, Michael Ledeen, Paul Wolfowitz  and Douglas Feith, with supporters like Norman Podhoretz, Midge Dector, and Jeanne Kirkpatrick.

Ledeen especially was deeply involved in the Iran-Contra affair and with Colonel Oliver North, a key figure in the drug-arms-money-laundering  that was the principal source of funding of the Shadow State.

This network has been called the Octopus by Danny Casolaro (who was murdered because of his investigations of it).

Other related or overlapping networks/operations include the Enterprise and Pegasus.

All of them are tied in different ways to prominent, seemingly disparate scandals of the period –  Operation Red Rock in Vietnam, the CIA-related Australian Nugan-Hand bank, the CIA-related BCCI bank, the Iran-Contra scandal, and the deaths of drug barons like Pablo Escobar and political bosses like Manuel Noriega.

To sum that up as briefly as possible, the New World Order was put in place through covert operations by a secretive element in government that is now so extensive as to control the entire government. That shadow government relies on the drug/arms trade for its funding and espionage and blackmail for its enforcement.

Uribe is an integral part of that story.

Mr. Holland is maybe naive.

But the Bell?

From the Guardian, some information tying Colombia’s Alvaro Uribe to Pablo Escobar:

“My brother Jaime died in 2001, married to Astrid Velez, they had two children … Any other romantic relationship that my brother may have had was part of his personal life and is unknown to me,” Álvaro Uribe tweeted on Sunday. He denied Jaime was ever linked to the drug lord Pablo Escobar.

According to the Nuevo Arco Iris investigation, Jaime Uribe was arrested and interrogated by the army in 1986 after detectives discovered calls had been made from his carphone to Escobar, leader of the Medellín cartel.

Álvaro Uribe acknowledged that his brother had been arrested but said he had been released and charges were dropped, claiming Jaime was recovering from throat surgery in a local hospital at the time the calls were made. “His car phone was cloned by criminals,” Alvaro Uribe tweeted.

The Uribe family has long faced accusations of ties to drug trafficking. A US intelligence report from 1991, declassified in 2004, identified Álvaro Uribe as a “close friend” of Escobar, who was “dedicated to collaboration with the Medellín cartel”. It also says Uribe’s father was murdered “for his connection with the narcotic (sic) traffickers”. Officially Uribe’s father died while trying to resist being kidnapped by leftist guerrillas in 1983.

The US state department disavowed the intelligence report when it was published, during Uribe’s second year in office, saying it had “no credible information” to substantiate the information.

Another Uribe brother, Santiago, isbeing investigated over the alleged founding and leadership of a rightwing paramilitary group, while Uribe’s cousin Mario lost his seat in the senate and was jailed for seven and a half years over ties to paramilitaries, main players in Colombia’s drug trade.

Colombia Reports has more on Uribe’s ties to narco-trafficking:

“Uribe’s early political career has been the subject of much speculation, rumors and accusations over his alleged links to Pablo Escobar and the Medellin Cartel. He began his political career in the late 70s, holding the posts of Chief of Assets for the Public Enterprises of Medellin (EPM) in 1976 and serving as Secretary General of the Ministry of Labor from 1977 to 1978. However it was after he was appointed as Director of Civil Aviation in 1980 that the rumors began.

Uribe’s appointment coincided with the rise of Escobar as an international trafficker and Uribe has had to answer allegations that the unusually high number of pilot’s licenses and airstrip construction permits issued on his watch were a major contributing factor to Escobar’s success. According to Escobar’s former lover Virginia Vallejo, the drug lord held Uribe in high regard for establishing the infrastructure to transport cocaine to the U.S.

Accusations that Uribe was an ally of Escobar were to follow him into his first major political role. In 1982, Uribe became mayor of Medellin, a post he was to hold for less than half a year. His reasons for leaving remain unclear but several journalists and writers have alleged his mafia ties became an embarrassment to more senior political figures. In his short term, Uribe publicly supported two public works projects financed by Escobar; construction of new housing for the poor and a city-wide tree planting scheme. Further controversy followed after the death of his father when it was reported that Uribe flew to his father’s ranch in a helicopter belonging to Pablo Escobar.

In 2004, during Uribe’s presidential term, the U.S. National Security Archive (NSA) published a declassified 1991 intelligence report from the U.S. Defense Intelligence Agency (DIA) that listed Uribe on a list of prominent Colombians involved in the drug trade. The report described Uribe as a “close personal friend of Pablo Escobar” and “dedicated to collaboration with the Medellin cartel at high government levels.”

From Counterpunch, analysis of Uribe’s US-backed policy of fomenting divisions in Latin American solidarity (written in 2010, when Uribe was stepping down):

“A U.S.-Colombian offensive against Venezuela at the moment of political transition presents a huge threat to regional stability. Uribe has consistently relied on the visceral response of the international right, forces within the U.S. government and nationalist anti-Venezuela sentiment in Colombia to build a fear of Chavez that is based more on created perception than on cool-headed analysis. Obviously, the vast majority of FARC, ELN and rightwing paramilitary forces declared “terrorist”, operate within Colombia.”

Stephen Lendman cites the valiant James Petras on Uribe’s narco-state:

“Thanks to Plan Colombia and other support, the state is heavily militarized, more than ever now serving as Washington’s land-based aircraft carrier against regional targets, including neighboring Venezuela.

The Pentagon got expanded access, former President Alvaro Uribe agreeing to US forces on seven more military bases (three airfields, two naval installations, and two army facilities), as well as unrestricted use of the entire country as-needed for internal and external belligerency, including out-of-control violence and human rights abuses, the region’s most extreme to keep two-thirds of Colombians impoverished, millions displaced, corruption endemic, wealth concentration growing, and corporate predators freed to exploit and plunder.

Also to facilitate record amounts of Colombian cocaine from government-controlled areas reaching US and world markets, new President Juan Manuel Santos embracing the “Uribe Doctrine,” now his. It’s extremist, hard right, corrupt, brutal, corporate-friendly, and militarized in lockstep with Washington.

As Uribe’s Defense Minister, James Petras explained that Santos was an assassin, deploying military forces and paramilitary death squads “to kill and terrorize entire population centers, (murdering) over 20,000 people….falsely labeled ‘guerrillas.’

War On India: Is Massive Electricity Outage Sabotage By Elites?

Power Grid failure hit India States Affected What is causing power grid failure in India?   What is an electrical grid?.

Update

Soutik Biswas at the BBC has some interesting facts about India’s power consumption:

  • Despite its soaring energy needs, India has one of the lowest per capita rates of consumption of power in the world,734 units, as compared to a world average of 2,429 units. This is nothing compared with say, Canada, (18,347 units) and the US (13,647 units). China’s per capita consumption (2,456 units) is more than three times that of India.
  • The low per capita consumption is despite the fact that the power sector has been growing at more than 7% every year.
  • Other interesting points Biswas makes: India’s electricity is mostly derived from coal, with about a fifth from hydro-elecric power; the main problems are massive subsidies to rich farmers, pervasive theft, and failures in transmissions and distribution; there is no shortage of money (this contradicts the usual mythology).
  • The most telling statistic: At the time of Independence, about 60% of India’s power sector was privately owned. Today, about 80% of the installed capacity is in the hands of the government

Update: I should point out how calm most of India looks in the pictures of the outage. There seems to be more panic in the Western media.

I can only imagine what would happen here if the entire population of the US (double that, actually) was plunged into darkness.

Part of the reason is that Indians are used to this sort of thing.

Rolling electricity cuts are common. In Tamil Nadu where a huge number of multinationals have relocated and heavily tax the system, there are current cuts practically every day, from anywhere between 4 hours and 12.

Usually, customers get notice and have time to arrange their day around the cut. But still, in temperatures of 45 degrees Celsius, it can be dangerous to have go without a fan, let alone an air conditioner, especially for older people, like my parents.

But, there hasn’t been a major power failure like this since 2001.

Causes of the current shortages include massive subsidies to farmers, pervasive current theft, and price controls. However,  for private industry to come in and suddenly take over would also have terrible immediate effects. The smart thing would be to improve the existing infrastructure, remove the subsidies, and crack down on theft.

Update: The AtlanticCities.com explains why it took longer to restore power in DC than in India.

“That’s 10 days for less than half a million people [in DC] compared to about 6 hours for most of the power to be restored to the roughly 350 million affected by the outage Monday, or compared to the 6 hours it’s taken Tuesday to restore power to 75 percent of the more than 670 million people affected by this latest outage. The Times of India notes that the last major outage – in 2001, affecting a region home to 230 million people – was resolved in 16 hours.”

“http://m.theatlanticcities.com/technology/2012/07/why-indias-massive-power-outages-get-fixed-more-quickly-dcs/2775/

Update:: A piece in Zdnet in June 2012 describes a new Indian security initiative that involved allowing some government agencies to carry out cyber attacks, apparently as a preemptive move. So, the Indian government had been anticipating a cyber attack and even planning one, if necessary. Curious.

India is taking steps to protect its cyberinfrastructure by designating relevant government agencies to carry out offensive cyberattacks on other countries when necessary.

The country’s National Security Council (NSC) will soon approve the “comprehensive” plan and designate the Defence Intelligence Agency (DIA) and National Technical Research Organization (NTRO) to carry out offensive cyber-operations if needed, sources told The Times of India in a report Monday. All other intelligence agencies will be authorized to carry out intelligence gathering abroad, but not offensive operations.

Update: A piece in the Telegraph of July 30 (the first day when the NE grid was down) quotes a businessman saying it felt like a cyberattack:

There is no way India can become an economic world power with such outages that leave a third of the country paralysed” businessman Virender Kapoor said. Its almost as if somebody had launched a crippling cyber attack on its power grid, he declared.

Update: An article in Economic Times, (India) July 19, 2012, reported a warning by McAfee (a computer security firm) that electric grids are easy to attack and can have a major impact. So, two weeks before a historic power outage occurs, a mainstream outlet runs a warning about a massive outage occurring, helpfully spelling out the details and warning that air defense systems could also be at risk?

“If a rogue state, terrorist, or malcontent wanted to debilitate a major city or even an entire country, how could it make a widespread, immediate, and lasting impact? Quite simply, by striking at the facilities that produce and distribute the electrical power that everything else depends on!

“Anything from the lights and appliances in your home to heart monitors in hospitals to air defense systems-anything could be compromised by a single, targeted attack on the energy grid. Only today, the weapon of choice is not a rocket launcher, but rather, malicious software code-malware that is skillfully designed to destroy, disrupt, or take control of the complex systems on which the grid runs,” Tom Moore, vice president, Embedded Security at McAfee said.

What’s more, it is modernization that has made the cyberthreat worse. The old systems were not sufficiently interconnected to make them that vulnerable.  The new systems, the Smart Grids, like Smart phones, are actually far more vulnerable to attack because they contain programs and embedded information that trojans or viruses can attack. Often, when modernizing, security and encryption are after thoughts…or might be just too expensive to consider.

“Moving systems from a manual process to one that is internet connected gave energy grid operators real-time info and allowed administrators to telecommute and field workers to re-program systems from remote locations through their smartphones however this also opened all their systems to the outside world.”

From what I can tell, India is trying to upgrade to smart grids.

That could make the system even more vulnerable, although it might help the single biggest problem after the aging infrastructure – the theft of electricity.

Update: Here’s another clue, in Rothschild-owned Reuters:

Stretching from Assam, near China, to the Himalayas and the northwestern deserts of Rajasthan, the outage was the worst to hit India in more than a decade and embarrassed the government, which has failed to build up enough power capacity to meet soaring demand.

If you have been following the Rothschild media for any length of time, a piece like this immediately gives the  game away. Who  thinks about the embarrassment of a government when hundreds of millions of people in the tropics have to go without electricity?

Most normal people are stunned or saddened, because they’re thinking of the people.

If the government actually is behind the failure in some way, it’s not an embarrassment, it’s criminal. And if the government’s not, then it’s an attack of some kind, in which case, it’s either criminal or some kind of state or non-state terrorism.

But embarrassment is the kind of thing only someone conducting a psyops would impute.

Update: Another clue that there is something fishy going on is that this occurred during the monsoon

season, when the demand on electric power-grids is lower than at other times. Correction: I read now that the monsoon was weaker than usual so there was an increase in electric usage to draw on well water:

The problem has been made worse by a weak monsoon in agricultural states such as wheat-belt Punjab and Uttar Pradesh in the Ganges plain, which has a larger population than Brazil.

With less rain to irrigate crops, more farmers resort to electric pumps to draw water from wells.

Also highly relevant to the blackout is the controversy over nuclear energy. While some people want to supplement the overloaded electric grid (overloaded because of economic growth), with nuclear power, others are understandably concerned about the potential for accidents in such a highly populated region of the world. That has led to rioting and protests against nuclear plants, like the one in Kudankulam Tamil Nadu, where usage of electricity is particularly heavy. A collapse of the electricity grid is an excellent way to force the issue and also strike a major blow to the country.

Update: I found some confirmation for my suspicions in comments made by executives responding to the crisis:

The failure happened without warning just after 1 p.m., electric company officials said.
“We seem to have plunged into another power failure, and the reasons why are not at all clear,” said Gopal K. Saxena, the chief executive of BSES, an electric company that services South Delhi, in a telephone interview. It may take a long time to restore power to north India, he said, because the eastern grid has also failed, and alternate power sources in Bhutan and the Indian state of Sikkim flow into the east first.
About two hours after the grid failure, power ministry authorities said some alternate arrangements had been made. “We are taking hydro power from Bhakhra Nangal Dam,” in northern India, said Sushil Kumar Shinde, the power minister, in a televised interview.”

I also found a statement contradicting claims that the outage was caused by an overdraw from state governments::

“No official reason for the Monday’s failure has been given, although some local news reports pointed fingers at state governments which were overdrawing power.

That assessment is too simplistic, Mr. Saxena, of BSES, said. There are controls in place on India’s electricity grids that override an outsized power demand. “We have one of the most robust, smart grids operating” in the world, he said. It would “not be wise” to give an assessment of what happened at this time, he added.”

Update: (July 31, 4:19PM) A couple of Pakistani websites are claiming that this was a Pakistani-Chinese cyberattack and that the Indian media has been told not to report on it.

This sounds pretty flimsy to me.

Even under Emergency in Mrs. Gandhi’s time there was no way to keep the press quiet.  But I’ll be on the look out. The timing of this, following the mysterious rioting in the strategic NE, is suspicious.

Update  : I was finally able to get through to family members, who tell me that the power failure mostly affects the north.  So, again, there is some hype about the situation. I’ll be adding info as I find it.

Update

SF Gate:

The massive failure – a day after a similar, but smaller power failure – has raised serious concerns about India’s outdated infrastructure and the government’s inability to meet its huge appetite for energy as the country aspires to become a regional economic superpower.

LR: The elites have been demanding that the government make it easier to invest in India’s infrastructure (public utilities), which they claim hasn’t been opened up at the speed at which they want:

Rothschild-affiliated Lakshmi Mittal on April 30, 2012

“India still has a tremendous potential to grow, but the slow progress in the infrastructure sector was proving to be an impediment, said Lakshmi Mittal, chairman and CEO of steel giant ArcelorMittal. He was in Bhatinda, Punjab in India recently where his company has set up Hindustan Mittal Energy Ltd (HMEL), a joint venture between state-run Hindustan Petroleum and Mittal Energy.

“Indian condemning millions to stay poor, Lakshmi Narayan Mittal says,” PTI, Times of India, June 20, 2012.

PM Manmohan Singh has responded that some of the problems have arisen because of Eurozone problems (where India has loaned money toward the bailout of European bankers) and also because of vehement press criticism of crony-capitalism that has made government officials extremely wary of doing anything. “Bollygarchs At Bay,” Investor’s Fresh New, July 31, 2012.

“Many foreign businesses have fallen foul of India’s tricky regulatory system but analysts note that it is domestic companies in sectors dependent on regulation that seem to be struggling more than most. Those with weaker links to government, such as consumer goods or pharmaceuticals, are proving more resilient.

A stark example is provided by Ambit Capital, a Mumbai-based broker. Its “politically connected companies” index ranks 75 big Indian businesses with either “strong connectivity to the political establishment” or fortunes that rely on state licences. For most of the past five years, they outperformed the 500 leading shares on the Bombay Stock Exchange. The pattern flipped last year, a trend that seems to be growing.”

ORIGINAL POST:

This is being called the largest black-out ever, affecting over 600 million people. (Hype?)

Power Fails Again in India, Wall Street Journal:

(I will add links to support my argument when I have time, so bear with me….)

“A massive power failure hit India’s north, east and northeast regions Tuesday, forcing offices and factories to shift to emergency generators and raising more questions about the state of infrastructure in Asia’s third-largest economy.

A commuter walked past an information board at a

The blackout was even more wide-reaching and severe than the power failure that plunged several states in northern India into darkness Monday.

Some 20 of India’s 28 states were affected Tuesday, and as many as 600 million people – half of India’s population – reportedly impacted. Monday’s blackout, which was caused by a failure of the northern grid, affected eight states with a total population of around 370 million.

Tuesday’s power outage was caused by the failure of the power supply networks in the north, east and northeast regions at 0730 GMT, according to the National Load Dispatch Center, a unit of Power Grid Corpof India Ltd. It added that work is on to restore the grid.

A commuter walked past an information board at a train station in New Delhi, Monday.

Power Minister Sushilkumar Shinde also said that efforts are being taken to resume supply as soon as possible, especially to essential services.

The electricity failure resulted in a widespread breakdown of transport and other services. A spokesman for the Northern Railways and Eastern Railways said about 200 trains were stopped in their tracks.

Metro rail services in New Delhi and its suburbs were halted as well, a spokesman for the Delhi Metro Rail Corp. said.

At Delhi’s international airport, diesel generators were switched on quickly to ensure services were not interrupted.

Arup Roy Choudhury, chairman of NTPC Ltd., India’s largest power generator by capacity, said the company’s coal-based power plants have stopped operating.

“We are expediting [the process of restarting the plants and will supply] first to the railways within the next one hour,” Mr. Choudhury said.

The government has already announced the appointment of a three-member panel to study the causes of Monday’s power failure. The committee will submit its report in 15 days’ time.

Comment:

There is a strong suspicion in my mind that this is sabotage at some level.

First.

I have been compiling growing evidence of  low-grade psychological warfare directed against India in the Western media: – The Time cover of Manmohan Singh as an underachiever, the barrage of misleading information about the Rajat Gupta trial, the publication of highly tendentious biographies of canonical Indian figures and Hindu leaders, accompanied by inflammatory and mendacious press articles, coupled with attacks in India by secular authorities (in bed with Western elites) against Hinduism and on Hindu temples, where vast amounts of gold still exist.

Second. In “Breaking India,” Rajiv Malhotra has described in detail how western-funded NGOs are encouraging secessionist activity.

The US state dept has made a U-turn and gone from condemning the Tamil Tigers as a terrorist movement to now supporting them as victims of Sri Lankan genocide.

(Bruce Fein’s career shows this about turn). Western elites are behind the foundation-funded Afro-Dalit movement, which aims to control the south of India, by westernizing it and breaking it off from the north.

The south includes the highly industrialized Tamil Nadu state, Andhra, the relatively wealthy Kerala region, as well as the Poona-Mumbai region, and it has not been affected.

The majority of Western corporations are located here.

Third.

Earlier this year, there were reports that a part of RAW (Indian intel) had fallen out with the Mossad. This followed on the Indian government’s commencement of barter and non-dollar trade with Iran, a move sure to discomfit the US government.

According to reporter Wayne Madsen, Indian intelligence has been cracking down on Mossad. (There is a division in RAW between those who want to stand firm against the globalist cabal, and those who want to be on the winning team).

Fourth.

There was a recent attack on an Indian fishing boat by a US naval vessel, leading to fatalities; in early July this year, there was a cyberattack on India’s naval HQ in Vizag, from which sensitive information was stolen apparently by hackers with Chinese IP addresses.

In the last few days before the outages, there were accounts of serious rioting/attacks against Muslims by Christian and Hindu tribes in the NE (near China and Burma).  Around a hundred were killed and thousands were displaced.

Fifth.

There is extensive Mossad/CIA activity in the NE area (near Burma) and in India as a whole, relating to the drug-trade that is now finding an HQ in Kochi in Kerala (where there is an ancient Jewish community, supposedly dating to the time of King Solomon) and in Mumbai, where there are numbers of Chabad houses through which the drug-money is laundered and where spies and saboteurs find refuge.

Sixth

Mossad and CIA have admitted being behind the creation of the Stuxnet virus and were behind David Headley, the alleged mastermind of the Mumbai bombing. Some allege that parts of Indian intelligence colluded with CIA and Mossad.

India was a minor victim of that virus when it first raised its head a couple of years ago.

[Check out my blog posts on Stuxnet.  I was one of the earliest bloggers to even follow the story and to allege it was an Israeli operation, not due to any so-called anti-Semitism on my part, but because I am aware that Israel leads the world in this area of technology.

Ditto with the Headley story, which was blogged here as well. ]

Seventh

The NE region is the area in which the electricity grid collapse began. Burma has recently been opened up and there has been some talk about Jewish republics being created there.

One such group is the Bnai Menashe in the NE part of India:

“Hillel Halkin, a well-known writer and translator who has lived in Israel for three decades, has written a fascinating new book out about his growing interest and belief in the Bnai Menashe, a group of some 5,000 people in a remote corner of northeastern India who live as observant Jews, claiming a link to the biblical tribe of Menashe. The book, Across The Sabbath River: In Search of a Lost Tribe of Israel, describes how Halkin’s skepticism was reversed after visiting the community, which began in the 1970s and has been guided for the last two decades by Eliahu Avichail, an Orthodox rabbi in Jerusalem. Over the years he has helped some 600 of the Bnai Menashe settle in Israel, where they underwent formal conversion. Another 100 arrived last month and more of their brethren would like to join them.

Michael Freund is a former New Yorker living in Jerusalem who has come to espouse the cause of the Bnai Menashe. A Modern Orthodox Jew who served as deputy director of communications and policy planning in the Prime Minister’s office under Benjamin Netanyahu, Freund, after visiting the community, has agreed to succeed Rabbi Avichail as head of Amishav, the organization championing the Bnai Menashe.

He believes that groups like the Bnai Menashe and the descendants of the Marranos “constitute a large, untapped demographic and spiritual reservoir for Israel and the Jewish people.” And while Freund opposes outright proselytization, citing traditional Judaism’s hesitancy about such an approach, he says that since groups like the Bnai Menashe have taken “the first step in our direction, it is time that we reach out and help them as they undergo the process of returning to the Jewish people.

The NE area is strategically-positioned between China and India, and has been the site of considerable secessionist activity over the last decade.

In 2009, two researchers claimed that a second Israeli state was emerging in India: “Second Israeli state emerging in India: “New Jersualem” movement eyes take over of three eastern states, near center of opium production,” John Kaminski and Arun Shrivastava, August 19, 2009

:A second “nation” of Israel today is nearing completion smack dab in the middle of the world’s premier drug producing region, the Golden Triangle of Burma — located right on the border between India and the military dictatorship now known as Myanmar, which is the real model of the human future.

Activities presaging the creation of a second Israeli state are well-known in India, but not elsewhere. Most everyone remembers how the first Israel popped onto the world scene in 1948 and has continued mass murdering its neighbors and hapless nations that fall under its sway ever since.

Precisely, political stealth moves over the last three decades and an aggressive outreach effort by “rabbis from Israel” to convert inhabitants of the three easternmost provinces of India to Judaism have been reported for years by Indian patriots in the Himalayan foothills who seek to return their country to its much longed for pre-British liberty.

The Deccan Chronicle, a newspaper in Hyderabad, reported that by means of “a ritual bath,” rabbis promise penniless Christian, Muslim and pagan converts a trip to Israel and preferred employment status, then buy votes of peasants, take over local boards and pass laws to legalize their manipulations, the same way they do everywhere else.

While the core issue in this geopolitical expansion of Rothschild-Rockefeller money empire that controls the world is proximity to the centuries old center of opium production run by the generals in Myanmar, the creation of a new Israeli state in the exact center of China, India and Southeast Asia augurs badly for the peoples of the region, as the current level of destabilization among Israel’s neighbors in the Middle East clearly illustrates.

And not to be forgotten is that the world’s oldest still functioning oil field is located in this area and Tripura state is reported to be floating on a sea of natural gas.”

The left and many non-governmental human rights group claim that the trouble in the NE is simply indigenous rebellion against multinational land-grabbing and government abuse of those who protest .

(The area is rich in minerals).

The right and the government claim that this is Naxalite-Maoist provocation, using the cover of trade-unions.

“There is enough documented information which reveals that trade unions are the new hunting grounds of Maoists. If we get good evidence that there was indeed a Maoist link to the Maruti violence, then we would invoke the anti-terror law,” a senior IB official told ET on condition of anonymity. The official says intelligence agencies suspect the attack on the Maruti plant was “premeditated” and believe that the union leaders could have links to top Maoist leaders. He cautioned it was early to reach any conclusion.

Former home secretary GK Pillai told ET: “The government has had information that Naxals have been trying to infiltrate labour organisations in urban areas for a while now. That information was passed on to states, and in some places action was taken.”

In recent days, there have been reports of violent rioting in the NE and the displacement of thousands of people.

Here is a report from France24

“”This time, it seems the violence was set off after a Muslim youth group in the district of Kokrajhar called for a strike to protest the removal of a signboard at a local mosque. This was followed by a series of drive-by killings, before large-scale rioting broke out on July 19. Roving bands of armed men – reportedly from both sides of the conflict – torched hundreds of houses, leaving both Bodos and Muslims homeless.

The indigenous Bodos represent just 10 percent of the population of Assam state. Since the early 1970s, the state has seen a steady influx of immigrants from Bangladesh. The rising number of Muslim immigrants has been cause for worry among Bodos, who are afraid that this could thwart their hopes of establishing an independent state.
[Hindu nationalists see this immigration as a kind of infiltration and subversion of the country.]
India’s Prime Minister Manmohan Singh, who visited both a Bodo and a Muslim refugee camp in Assam state on Saturday, promised “a proper inquiry into the tragic incidents”, as well as a three billion rupee (44 million euro) relief package for the region.”
And most significantly, no one seems to be able to say what set off the rioting.
“No one can explain how the violence started. They tell me they usually have good relations with the Bodo people. Muslims have lived in Bodo areas for a very long time – some even speak Bodo. Though this is not the first time Muslims and Bodos have clashed, the violence still seems to have taken them by surprise.”

Now comes the report of the grid being hit in the north (Monday) and spreading to most of the rest of the country (Tuesday)

There is not doubt in my mind that this is sabotage.

Eighth

Naturally, the Trojan horse Anna Hazare group (blessed by Wikileaks and heavily supported by Western NGOs of the “color revolution” variety) claims that the outage is an Indian government conspiracy.

That conspiracy theory covers the first few pages of Google already, very conveniently.

Just now, I noticed several sites referring to “Bhagat Singh” and praising revolution in India.  Here is one identifying itself as Naxalite and asking Indians to join the revolution. It looks like some kind of intelligence-created OPTOR! style site to me.

If the grid got hit only yesterday, how is it that Anna Hazare has so quickly come up with this theory and Google has already taken it up so fast? This means that any other interpretation of events  – for eg. that it is  likely orchestrated by the Western elites – is unable to get a hearing.

I know that when I posted my Goldman articles on LRC in 2008, they were rarely linked or passed around. A couple of them in fact landed up on sites like “Assassinated Press.” But any rumor passed on by NGO-backed journalists gets read over international radio, passed around in a flash, and rises to the top of Google searches. [As soon as I said this, of course, this post rises in Google!]

In fact, whenever I post a controversial piece like this one, I notice my home page on Google searches doesn’t change. I also notice an increase in spam and evidence of browser hijacking.

This is a pattern I’ve seen over and over.

I think there is a fair possibility that some parts of the Indian government (those colluding with outside interests, whether left-communist or right-corporatist) might be involved in the sabotage, but there is no doubt in my mind that the puppet-masters are Western elites.

The attack might be part of the show of strength necessary to collapse the government or force its hand.

[Added: I also wonder if it could be a kind of “war-gaming” by parts of the government for its own ends? ]

Anna Hazare’s grandstanding over the grid failure is also getting the headlines. This is the same way in which the Anna  movement got off the ground in the first place, at lightning speed, overtaking the indigenous resistance movement. Anna Hazare, like OccupyWallStreet, has the blessings of the western elites.

The elites need to break up India so as to have its constituent parts under control.

The idea is to stir up the Indian masses and to show the Indian government that it is the elites who are really in charge. Thus, Lakshmi Mittal (who is hand-in-glove with the Rothschilds) delivered an ultimatum to the Indian government recently, to “grow” or else.

Ninth (and the most controversial and speculative).

There were two massive earthquakes in Indonesia earlier this year (once was 8.9), of a magnitude that should have set off tsunamis that would have been in the direction of India.

In fact, there were tsunami warnings, but nothing came of it. The earthquakes took place off the Aceh province, which is just where the 2004 Asian tsunami had its origin. Had there been a similar tsunami from the earthquakes this year, it would have hit the Kudankulam nuclear plant which is at the tip of the peninsula, right on the Indian ocean. It would have been Fukushiima all over.

“More than 1 million people live within the 30 km radius of the KKNPP which far exceeds the AERB (Atomic Energy Regulatory Board) stipulations. It is quite impossible to evacuate this many people quickly and efficiently in case of a nuclear disaster at Koodankulam.”

The 2004 tsunami, which killed over 250,000 people hit, India and Sri Lanka.  I speculated then that it might have been caused by underwater nuclear testing in the Indian ocean.  Coincidentally,  the southern half of Iran has been struck by a massive drought (as have the grain-belt (heartland region) of the US and three quarters of Mexico) this past year.

Note:

I was unable to get through on the phone to India when I tried.

Notes:

“”Wikileaks takes credit for Anna Hazare’s anti-corruption campaign,”  MSN, April 20, 2011

http://news.in.msn.com/national/article.aspx?cp-documentid=5111803

The Bankers And The American Revolution [Correction]

Update: I didn’t make it clear that I do not subscribe to the theory given in this account of Lincoln as heroic defender of the the republic against the banking cartels. Gary North has written a piece refuting this theory.

I am however interested in the figure of Judah P. Benjamin and in his curious erasure from the history books, when, from many accounts, he was one of the most prominent men of his time. I know the name from a friend who is a Civil War aficionado. But this is the first I’ve read that he was connected in some way to the banking cartel.

ORIGINAL POST

An article at Global Research (“The Federal Reserve Cartel: Freemasons and the House of Rothschild,” Dean Henderson, July 30 2012) discusses the pervasive influence of the banking cartels on the major figures of the American Revolution, as well as on subsequent Presidents. It even suggests (at the end of this excerpt) that there was a  Rothschild connection to the assassination of Abraham Lincoln.

The article points the finger at Judah P. Benjamin, Confederate Secretary of State.

Others rebut the theory as an anti-Semitic canard (“Banking and the Confederacy,” K. R. Bolton, Alternative Right, July 26, 2011). They point out that Benjamin, a Sephardic Jew married to a Catholic and originally from Haiti, had little to do with the European aristocratic circles in which the Rothschilds and their associates moved.

Here is an excerpt from the four-part Henderson piece:

“All US Masonic lodges are to this day warranted by the British Crown, whom they serve as a global intelligence and counterrevolutionary subversion network. Their most recent initiative is the Masonic Child Identification Program (CHIP). According to Wikipedia, the CHIP programs allow parents the opportunity to create a kit of identifying materials for their child, free of charge. The kit contains a fingerprint card, a physical description, a video, computer disk, or DVD of the child, a dental imprint, and a DNA sample.

The First Continental Congress convened in Philadelphia in 1774 under the Presidency of Peyton Randolph, who succeeded Washington as Grand Master of the Virginia Lodge.  The Second Continental Congress convened in 1775 under the Presidency of Freemason John Hancock.  Peyton’s brother William succeeded him as Virginia Lodge Grand Master and became the leading proponent of centralization and federalism at the First Constitutional Convention in 1787.  The federalism at the heart of the US Constitution is identical to the federalism laid out in the Freemason’s Anderson’s Constitutions of 1723. William Randolph became the nation’s first Attorney General and Secretary of State under George Washington. His family returned to England loyal to the Crown.  John Marshall, the nation’s first Supreme Court Justice, was also a Mason. [3]

When Benjamin Franklin journeyed to France to seek financial help for American revolutionaries, his meetings took place at Rothschild banks.  He brokered arms sales via German Mason Baron von Steuben.  His Committees of Correspondence operated through Freemason channels and paralleled a British spy network.  In 1776 Franklin became de facto Ambassador to France.  In 1779 he became Grand Master of the French Neuf Soeurs (Nine Sisters) Lodge, to which John Paul Jones and Voltaire belonged.  Franklin was also a member of the more secretive Royal Lodge of Commanders of the Temple West of Carcasonne, whose members included Frederick Prince of Whales. While Franklin preached temperance in the US, he cavorted wildly with his Lodge brothers in Europe.  Franklin served as Postmaster General from the 1750’s to 1775 – a role traditionally relegated to British spies. [4]

With Rothschild financing Alexander Hamilton founded two New York banks, including Bank of New York. [5]  He died in a gun battle with Aaron Burr, who founded Bank of Manhattan with Kuhn Loeb financing.  Hamilton exemplified the contempt which the Eight Families hold towards common people, once stating, “All communities divide themselves into the few and the many.  The first are the rich and the well born, the others the mass of the people…The people are turbulent and changing; they seldom judge and determine right.  Give therefore to the first class a distinct, permanent share of government.  They will check the unsteadiness of the second.”[6]

Hamilton was only the first in a series of Eight Families cronies to hold the key position of Treasury Secretary.  In recent times Kennedy Treasury Secretary Douglas Dillon came from Dillon Read (now part of UBS Warburg). Nixon Treasury Secretaries David Kennedy and William Simon came from Continental Illinois Bank (now part of Bank of America) and Salomon Brothers (now part of Citigroup), respectively. Carter Treasury Secretary Michael Blumenthal came from Goldman Sachs, Reagan Treasury Secretary Donald Regan came from Merrill Lynch (now part of Bank of America), Bush Sr. Treasury Secretary Nicholas Brady came from Dillon Read (UBS Warburg) and both Clinton Treasury Secretary Robert Rubin and Bush Jr. Treasury Secretary Henry Paulson came from Goldman Sachs. Obama Treasury Secretary Tim Geithner worked at Kissinger Associates and the New York Fed.

Thomas Jefferson argued that the United States needed a publicly-owned central bank so that European monarchs and aristocrats could not use the printing of money to control the affairs of the new nation.  Jefferson extolled, “A country which expects to remain ignorant and free…expects that which has never been and that which will never be.  There is scarcely a King in a hundred who would not, if he could, follow the example of Pharaoh – get first all the people’s money, then all their lands and then make them and their children servants forever…banking establishments are more dangerous than standing armies.  Already they have raised up a money aristocracy.” Jefferson watched as the Euro-banking conspiracy to control the United States unfolded, weighing in, “Single acts of tyranny may be ascribed to the accidental opinion of the day, but a series of oppressions begun at a distinguished period, unalterable through every change of ministers, too plainly prove a deliberate, systematic plan of reducing us to slavery”. [7[

But the Rothschild-sponsored Hamilton’s arguments for a private US central bank carried the day.  In 1791 the Bank of the United States (BUS) was founded, with the Rothschilds as main owners.  The bank’s charter was to run out in 1811.  Public opinion ran in favor of revoking the charter and replacing it with a Jeffersonian public central bank.  The debate was postponed as the nation was plunged by the Euro-bankers into the War of 1812.  Amidst a climate of fear and economic hardship, Hamilton’s bank got its charter renewed in 1816.

Old Hickory, Honest Abe & Camelot

In 1828 Andrew Jackson took a run at the US Presidency.  Throughout his campaign he railed against the international bankers who controlled the BUS.  Jackson ranted, “You are a den of vipers.  I intend to expose you and by Eternal God I will rout you out.  If the people understood the rank injustices of our money and banking system there would be a revolution before morning.”

Jackson won the election and revoked the bank’s charter stating, “The Act seems to be predicated on an erroneous idea that the present shareholders have a prescriptive right to not only the favor, but the bounty of the government…for their benefit does this Act exclude the whole American people from competition in the purchase of this monopoly.  Present stockholders and those inheriting their rights as successors be established a privileged order, clothed both with great political power and enjoying immense pecuniary advantages from their connection with government.  Should its influence be concentrated under the operation of such an Act as this, in the hands of a self-elected directory whose interests are identified with those of the foreign stockholders, will there not be cause to tremble for the independence of our country in war…controlling our currency, receiving our public monies and holding thousands of our citizens independence, it would be more formidable and dangerous than the naval and military power of the enemy.  It is to be regretted that the rich and powerful too often bend the acts of government for selfish purposes…to make the rich richer and more powerful.  Many of our rich men have not been content with equal protection and equal benefits, but have besought us to make them richer by acts of Congress.  I have done my duty to this country.”[8]

Populism prevailed and Jackson was re-elected. In 1835 he was the target of an assassination attempt.  The gunman was Richard Lawrence, who confessed that he was, “in touch with the powers in Europe”. [9]

Still, in 1836 Jackson refused to renew the BUS charter.  Under his watch the US national debt went to zero for the first and last time in our nation’s history.  This angered the international bankers, whose primary income is derived from interest payments on debt.  BUS President Nicholas Biddle cut off funding to the US government in 1842, plunging the US into a depression.  Biddle was an agent for the Paris-based Jacob Rothschild. [10]

The Mexican War was simultaneously sprung on Jackson. A few years later the Civil War was unleashed, with London bankers backing the Union and French bankers backing the South. The Lehman family made a fortune smuggling arms to the south and cotton to the north.  By 1861 the US was $100 million in debt.  New President Abraham Lincoln snubbed the Euro-bankers again, issuing Lincoln Greenbacks to pay Union Army bills.

The Rothschild-controlled Times of London wrote, “If that mischievous policy, which had its origins in the North American Republic, should become indurated down to a fixture, then that Government will furnish its own money without cost. It will pay off its debts and be without debt. It will have all the money necessary to carry on its commerce. It will become prosperous beyond precedent in the history of the civilized governments of the world. The brains and the wealth of all countries will go to North America. That government must be destroyed, or it will destroy every monarchy on the globe.” [11]

The Euro-banker-written Hazard Circular was exposed and circulated throughout the country by angry populists.  It stated, “The great debt that capitalists will see is made out of the war and must be used to control the valve of money.  To accomplish this government bonds must be used as a banking basis.  We are now awaiting Secretary of Treasury Salmon Chase to make that recommendation.  It will not allow Greenbacks to circulate as money as we cannot control that.  We control bonds and through them banking issues”.

The 1863 National Banking Act reinstated a private US central bank and Chase’s war bonds were issued.  Lincoln was re-elected the next year, vowing to repeal the act after he took his January 1865 oaths of office.  Before he could act, he was assassinated at the Ford Theatre by John Wilkes Booth.  Booth had major connections to the international bankers.  His granddaughter wrote This One Mad Act, which details Booth’s contact with “mysterious Europeans” just before the Lincoln assassination.

Following the Lincoln hit, Booth was whisked away by members of a secret society known as Knights of the Golden Circle (KGC).  KGC had close ties to the French Society of Seasons, which produced Karl Marx.  KGC had fomented much of the tension that caused the Civil War and President Lincoln had specifically targeted the group.  Booth was a KGC member and was connected through Confederate Secretary of State Judah Benjamin to the House of Rothschild.  Benjamin fled to England after the Civil War. [12]”

Bandit-Bankster Corzine Protected By Holder and Freeh

Human E vents:

“Considering the magnitude of the failure at MF Global, where over a billion dollars’ worth of client’s money was “vaporized” under legally questionable circumstances, many observers are amazed that chief executive Jon Corzine hasn’t gotten in more legal trouble.  Corzine, of course, has huge Democrat Party political connections, including a career as the Democrat governor of New Jersey, and in the Senate.  He’s a big money bundler for the Obama re-election campaign, and has continued putting big bucks in the Obama coffers long after his disgrace.

But there might just be some other reasons for Corzine’s remarkably smooth skating after the MF Global collapse, as reported by Wynton Hall at Breitbart News: documents uncovered by the Government Accountability Institute reveal that “now-defunct MF Global was a client of Attorney General Eric Holder and Assistant Attorney General Lanny Breuer’s former law firm, Covington & Burling.”

Furthermore, MF Global’s bankruptcy trustee hired the former law firm of Associate Attorney General Tony West.  The trustee is former FBI director Louis Freeh, who hired Eric Holder as a trial counsel when Freeh was working as the general counsel for MBNA America Bank in the early 2000s.  Freeh was a character witness at Holder’s Senate confirmation hearings for the Attorney General position.

The tight web of connections between Justice officials and the banking industry have led many members of Congress to demand a special prosecutor to investigate the MF Global collapse.  It looks like one more affair that Eric Holder’s politicized Justice Department cannot be trusted to investigate.”

The Money-Power: The Bankers That Rule The Economy

A report in New Scientist (“Revealed: the Capitalist Network That Runs The World” October 24, 2011) confirms what honest observers of the system (often called banking conspiracy theorists) have said along – a small interlocking group of powerful banks rule the world economy. I blogged about this last year in “The 20..er…4..companies that rule the world” (October 28, 2011)

An analysis of the relationships between 43,000 transnational corporations has identified a relatively small group of companies, mainly banks, with disproportionate power over the global economy.

The study’s assumptions have attracted some criticism, but complex systems analysts contacted by New Scientist say it is a unique effort to untangle control in the global economy. Pushing the analysis further, they say, could help to identify ways of making global capitalism more stable.

The idea that a few bankers control a large chunk of the global economy might not seem like news to New York’s Occupy Wall Street movement and protesters elsewhere (see photo). But the study, by a trio of complex systems theorists at the Swiss Federal Institute of Technology in Zurich, is the first to go beyond ideology to empirically identify such a network of power. It combines the mathematics long used to model natural systems with comprehensive corporate data to map ownership among the world’s transnational corporations (TNCs).

“Reality is so complex, we must move away from dogma, whether it’s conspiracy theories or free-market,” says James Glattfelder. “Our analysis is reality-based.”

Previous studies have found that a few TNCs own large chunks of the world’s economy, but they included only a limited number of companies and omitted indirect ownerships, so could not say how this affected the global economy – whether it made it more or less stable, for instance.

The Zurich team can. From Orbis 2007, a database listing 37 million companies and investors worldwide, they pulled out all 43,060 TNCs and the share ownerships linking them. Then they constructed a model of which companies controlled others through shareholding networks, coupled with each company’s operating revenues, to map the structure of economic power.

The work, to be published in PLoS One, revealed a core of 1318 companies with interlocking ownerships (see image). Each of the 1318 had ties to two or more other companies, and on average they were connected to 20. What’s more, although they represented 20 per cent of global operating revenues, the 1318 appeared to collectively own through their shares the majority of the world’s large blue chip and manufacturing firms – the “real” economy – representing a further 60 per cent of global revenues.

When the team further untangled the web of ownership, it found much of it tracked back to a “super-entity” of 147 even more tightly knit companies – all of their ownership was held by other members of the super-entity – that controlled 40 per cent of the total wealth in the network. “In effect, less than 1 per cent of the companies were able to control 40 per cent of the entire network,” says Glattfelder. Most were financial institutions. The top 20 included Barclays Bank, JPMorgan Chase & Co, and The Goldman Sachs Group.

John Driffill of the University of London, a macroeconomics expert, says the value of the analysis is not just to see if a small number of people controls the global economy, but rather its insights into economic stability.

Concentration of power is not good or bad in itself, says the Zurich team, but the core’s tight interconnections could be. As the world learned in 2008, such networks are unstable. “If one [company] suffers distress,” says Glattfelder, “this propagates.”

“It’s disconcerting to see how connected things really are,” agrees George Sugihara of the Scripps Institution of Oceanography in La Jolla, California, a complex systems expert who has advised Deutsche Bank.

Yaneer Bar-Yam, head of the New England Complex Systems Institute (NECSI), warns that the analysis assumes ownership equates to control, which is not always true. Most company shares are held by fund managers who may or may not control what the companies they part-own actually do. The impact of this on the system’s behaviour, he says, requires more analysis.

Crucially, by identifying the architecture of global economic power, the analysis could help make it more stable. By finding the vulnerable aspects of the system, economists can suggest measures to prevent future collapses spreading through the entire economy. Glattfelder says we may need global anti-trust rules, which now exist only at national level, to limit over-connection among TNCs. Sugihara says the analysis suggests one possible solution: firms should be taxed for excess interconnectivity to discourage this risk.

One thing won’t chime with some of the protesters’ claims: the super-entity is unlikely to be the intentional result of a conspiracy to rule the world. “Such structures are common in nature,” says Sugihara.

Newcomers to any network connect preferentially to highly connected members. TNCs buy shares in each other for business reasons, not for world domination. If connectedness clusters, so does wealth, says Dan Braha of NECSI: in similar models, money flows towards the most highly connected members. The Zurich study, says Sugihara, “is strong evidence that simple rules governing TNCs give rise spontaneously to highly connected groups”. Or as Braha puts it: “The Occupy Wall Street claim that 1 per cent of people have most of the wealth reflects a logical phase of the self-organising economy.”

So, the super-entity may not result from conspiracy. The real question, says the Zurich team, is whether it can exert concerted political power. Driffill feels 147 is too many to sustain collusion. Braha suspects they will compete in the market but act together on common interests. Resisting changes to the network structure may be one such common interest.

When this article was first posted, the comment in the final sentence of the paragraph beginning “Crucially, by identifying the architecture of global economic power…” was misattributed.

The top 50 of the 147 superconnected companies

1. Barclays plc
2. Capital Group Companies Inc
3. FMR Corporation
4. AXA
5. State Street Corporation
6. JP Morgan Chase & Co
7. Legal & General Group plc
8. Vanguard Group Inc
9. UBS AG
10. Merrill Lynch & Co Inc
11. Wellington Management Co LLP
12. Deutsche Bank AG
13. Franklin Resources Inc
14. Credit Suisse Group
15. Walton Enterprises LLC
16. Bank of New York Mellon Corp
17. Natixis
18. Goldman Sachs Group Inc
19. T Rowe Price Group Inc
20. Legg Mason Inc
21. Morgan Stanley
22. Mitsubishi UFJ Financial Group Inc
23. Northern Trust Corporation
24. Société Générale
25. Bank of America Corporation
26. Lloyds TSB Group plc
27. Invesco plc
28. Allianz SE 29. TIAA
30. Old Mutual Public Limited Company
31. Aviva plc
32. Schroders plc
33. Dodge & Cox
34. Lehman Brothers Holdings Inc*
35. Sun Life Financial Inc
36. Standard Life plc
37. CNCE
38. Nomura Holdings Inc
39. The Depository Trust Company
40. Massachusetts Mutual Life Insurance
41. ING Groep NV
42. Brandes Investment Partners LP
43. Unicredito Italiano SPA
44. Deposit Insurance Corporation of Japan
45. Vereniging Aegon
46. BNP Paribas
47. Affiliated Managers Group Inc
48. Resona Holdings Inc
49. Capital Group International Inc
50. China Petrochemical Group Company

* Lehman still existed in the 2007 dataset used

Graphic: The 1318 transnational corporations that form the core of the economy

Comment

This shouldn’t come as a surprise for anyone who’s been reading this blog. I blogged about this in “Nightmare on Wall Street” (2008)

My earlier pieces on Goldman Sachs, were premised on research into this interlocking cartel.

For the power behind the banking cartel, see “The Invisible House of Rothschild” by Zahir Ebrahim.

See also my blog post “The Invisible Wealth Of The Rothschilds,” (2011) citing a piece by Markus Angelicus on the estimated wealth of the Rothschilds, “The Rothschilds, the LBMA and gold” (1997)

The numbers (hundreds of thousands of trillions of dollars) might seem outlandish, and they may well be,  but if you consider the estimate to include the entire holdings of the family in all its branches, and if you consider the family to be the head of what is really a banking syndicate that includes a network of other financial houses, then the figures become more plausible.

Still, other estimates I have seen are much more modest, ranging from a few trillion to a 300-500 trillion.

So that is quite a variance and none of this is documented scientifically. They are more or less speculative estimates based on published figures, since we have no public accounting for wealth held in family trusts or vaults. And they assume that these families’ holdings have not been wiped out, or eroded, as some of them claim.

Additionally, the Rothschilds are the bankers to the Crown and they have systematically intermarried with some members of the Royalty, so the total numbers would reflect the combined wealth of the ruling houses into which they married, as well as their own money.

Finally, here is a report that the Rockefeller and Rothschild families have joined in a business merger:

Rockefeller and Rothschild Dynasties Join Forces, Deal Book, NY Times, May 30, 2012.

Elite Mouthpiece Taunts Ron Paul On Failure Of Fed Campaign

Added July 21, 2012:

How did I see the confrontation? I thought Paul did as well as anyone could in the time given. Except for a few word slips, he was pretty cogent and effective. Bernanke looked discomfited in the middle, when he was questioned about the transfer of authority from Congress to the Fed and when the issue of secrecy was brought up. Other than that, he was impassive and spoke little.  Paul wasn’t “subdued” at all. I don’t watch all his videos, but I’ve seen him a number of times in debate, and that was fairly straightforward Paul. If there was a white flag, I didn’t see it.

If he wasn’t as combative as some seem to think, it’s most likely because it’s his last such confrontation. He’s retiring, I’m told. Too bad.

I thought it was a fairly effective performance and a good wrap up of his major arguments. I think if you’d known nothing about the Fed until then, you would have got the salient points of the anti-Fed argument: he described Bretton Woods,  exchange-rate and interest-rate manipulation; big government financing through debt; transfer of wealth from the poor and middle-class to the wealthy; malinvestment; money supply expansion versus CPI inflation; the housing bubble; and the need for Congressional oversight.

I wouldn’t call it a knock-out, simply because Bernanke was so impassive through out.

That of course helps the media to reframe the confrontation anyway it suits them. Which is what Dana Milbank promptly did.

Paul Vs. Bernanke video

“Ron Paul Vs. Bernanke: final battle ends on surprising note,” David Grant, Christian Science Monitor, July 18, 2012

“Ron Paul Has The Final Say,” Bob Adelman, New American, July 19, 2012

ORIGINAL POST

Skull & Bones affiliated establishment journalist Dana Milbank taunts Ron Paul about the end of the “End the Fed” campaign in a piece entitled, “Ron Paul Fed Up With Trying To End The Fed” (Washington Post, July 18, 2012)

Well, I have plenty of problems with the whole Ron Paul movement these days (for a view from a Paul supporter see  this:), but the piece does more than criticize Paul.

What it does is gloat.

Here are some lines from it, with my parsing.:

“He didn’t even make a dent in it.”

[LR: The Fed is unassailable]

“…Paul raised the white flag.”

[LR: The Fed has won…]

“For the fiery Paul, it was a subdued surrender.”

[LR: So now you know how powerful we really are, old man.]

“….treating him with the cautious affection one might use to address a crazy uncle.”

[LR: You didn’t reach the point where we’d have to assassinate you, so we’ll just let people know that you and your supporters can’t be taken seriously.]

“But Paul faded away with surprising deference.”

[LR: Yes. He’s under our thumb. We call the shots. He knows what’s good for him, so he’s fading away.]

“The one substantial challenge to Bernanke — Paul’s “audit the Fed” bill, which the House is expected to approve next week before it dies in the Senate — was easily dispatched by the Fed chairman,”

[LR: Audit the Fed is croaking.]

“The Paul to Bernanke word ratio this time was 12 to 1.”

[LR: He’s just a rambling  old man. Real men don’t talk, they print.]

“There’s no constitutional reason why Congress couldn’t just take over monetary policy,” he said. “But I’m advising you that it wouldn’t be very good from an economic policy point of view.”

[LR: We’re the constitutionalists, not you. Audit the Fed is only about Congress taking over monetary policy, folks. Imagine! They can’t run a post office. How do you think they’re going to do with deep stuff like economics?]

“”At this point, the committee chairman cut him off. Paul’s time had expired.”

[LR: We’ve put up with you long enough, grandpa. Your time’s up. The game is over.]

The framing of the whole piece is quite masterful. There is not one substantial piece of analysis about the actual policies in question. We are not told what is involved in either “End the Fed” or “Audit the Fed.”

We are instead given information about procedure….rules regarding how bills go through the house, and how speakers get to speak. A contrast is set up between the grave, measured proceedings of the state and the law (the constitution) and the self-indulgent rambling of an aging politician.

The roles are reversed.

Paul becomes the political class. Bernanke becomes the embodiment of the constitution and of law.

From beginning to end we’re told how to think about what’s going on.

This is what we’re supposed to think:

Bernanke is sage, powerful and indulgent.

Paul is a crazy old man, who doesn’t know the elements of civility….or the constitution.

He’s an anti-government politician, but he’s for the government control of the money supply.

He cuts into other people’s time. He rambles on. He talks too much.

Paul is just a “supplicant” before the great Fed chairman. The final word is with the Fed.

So, even though he gets his fifteen minutes, it’s clear Paul doesn’t really understand the constitution or money.

And he’s for the government!

Notice how the piece distorts Paul’s position to make it look as if “Audit the Fed” (Paul’s fall-back position from “End the Fed”) is about putting arcane and complex professional matters into the hands of politicians.

Milbank turns Bernanke into the “private” expert and Paul into the bumbling government man.

That is sure to appeal to Americans of every political stripe. The average reader would immediately distrust anyone who intends to subject policies about the country’s money-supply to ignorant legislators driven by partisan bias.

What that does is clear.

It turns the  whole anti-government argument against anti-government activists.

It also turns  the pro-constitution argument against constitutionalists.

This is propaganda of the highest order.

Preet Bharara – Overhyped and Toothless

Gary Weiss in Salon

“Yet nowhere in Gabriel Sherman’s well-researched piece in New York is there even one mention of Preet Bharara.

There’s a simple reason for that:  Preet Bharara is not busting Wall Street. He’s not collaring the masters of the meltdown. He’s done nothing to even slightly discomfit Wall Street’s still-ferocious money machine, or has yet to bring to justice the architects, enablers and continuers of the 2008 financial crisis — the bankers who got us into that mess, and the ones who are continuing to extract pain from foreclosed homeowners, in the New York area and beyond.

As a matter of fact, his over-hyped insider-trading prosecutions, the main focus of the Time piece, are doing the Street a favor, by targeting people who actually ripped off Wall Street — individuals like hedge fund managers Raj Rajaratnam and Danielle Chiesi, who functioned a bit like the goons who used to dope race horses in the old days.

Bharara’s insider trading targets rigged the game for their own profit by illegally misappropriating information, in effect stealing from their employers and other investors, just as the horse-dopers cheated racetracks and other betters. Another analogy, also from the racetracks of old, would be to the scam artists who used to “past-post”: bet on races after they knew the outcome.

That’s how insider trading works. It’s a form of theft and cheating. It’s bad. Bharara was right to prosecute them, just as he has aggressively pursued drug gangs in the outer boroughs. But let’s be clear on something: The big players, the Goldman Sachses, Merrill Lynches, Banks of America and so on, don’t like insider trading any more than Preet Bharara does.

And none of his criminal prosecutions to date — including his recent bust of three high-ranking former Credit Suisse execs, accused of rigging the value of mortgage bonds they held in 2008 — had any connection to the pain being felt by Americans today, which can be directly traced to the misconduct of mortgage bankers and derivatives traders in the run-up to the financial crisis.

The real perps of the financial crisis haven’t been in Bharara’s — or the Justice Department’s — cross hairs for a single moment since Barack Obama took office three years ago. It’s one of the most troublesome failings of his administration.”

Rajat Gupta Verdict: Insider-Trading & IP Theft By The Govt

“Anyone can benefit from insider information but not anyone can afford a supercomputer. They may both provide – with fair certainty – a market advantage but only one advantage will be prosecuted.”

–    Anthony Wile, The Daily Bell

Tyler Durden On The Plunge Protection Team

Tyler Durden at Zerohedge has this week’s important report. None of it is surprising if, like me, you are a paranoid conspiracist, tired of being proved right over and over and over The report only confirms what any sensible observer, who wasn’t biased or ideological, could have seen.

I differ from Durden on a number of things, one being that I’m not sure the answer to our problems is an expansion of Federal regulation or the Department of Justice.

But I don’t fall into the opposite school of thinking, either. Let’s destroy national sovereignty isn’t the solution. I think there are other approaches, but since no one asked me, I’ll keep them to myself.  Let the ideologues knock themselves out. It’s too much fun watching to stop it.

The ideological divide, and purist positions are part of the problem, not the answer. And I wouldn’t be surprised if I were to find out that it has been set up that way intentionally. It certainly plays into controlling the terms of the debate.

Be that as it may, my position is that “insider trading” is secondary to the entire post-war conduct of the state-corporate complex.

Still, does that mean we need to defend Paulson…or Gupta…if they are guilty as charged? No. Live by force and fraud, die by force and fraud is a reasonable approach to take.

We needn’t take the part of the prosecution. Indeed, we can’t, when we remember how many people were lying on their loan forms, how many journalists had their lips stuck to the backsides of politicians, celebrities and Wall Street bigwigs they were supposed to be covering, and how many regulators looked the other way through it all.

But it is also wrong to think of Paulson or Gupta as private citizens either. They are BOTH king-pins of the state-corporate complex.  We don’t know exactly what either did wrong, and at this point Gupta’s actions look like peanuts next to the role of the plunge-protection team, but let’s wait and see it unfold.

I feel compassionate to them as human beings, for sure. And my own take was always that Paulson should just have been asked to step down, return that part of his fortune that was  dishonestly acquired to the victims or give it away to some charity of his choosing.

No waste of tax-payer money, no show trials, no time wasted.

But you know, in that case, we will also have to let the jails open and let the population out too. Including murderers (you don’t know what led them to kill, do you?).

If we are going to be determinists (“Bernanke’s money printing” made me steal and lie, your honor), then surely murderers should be let out too (“Child abuse made me kill) and serial cannibals (“Vicious snuff movies made me what I am, your honor). Let them all go.

And while you’re at it, stop ANY corporation or individual from using the laws (backed the by the state) too.

Where is the libertarian outrage over Googe’s lawsuits (using Federal courts) against competitors? Where is the outrage over corporate non-disclosure agreements (upheld by federal courts) signed under duress of various kinds to hide even criminal wrong-doing? Where is the outrage over blackmail and bribery used to steal what are by common understanding public funds meant for public use or to damage weaker firms or individuals? No outrage, right?

Instead, libertarians selectively defend fraud (“no such thing as IP”; no such thing as blackmail; no such thing as fraudulent advertising or marketing; no such thing as damaging pornography; no such thing as bribery).  Or rather, they’re all good things!

You get my drift.

Behold the ideologue. He’s not a bad guy. He’s even a good guy. But he’s become too clever in his conceit (pun intended…ideology is an extended conceit…in the literary sense… and it is conceited in the moral sense). So clever that common-sense and honor have fled long ago.

[Links and tidying up to follow…I just had to unburden myself of my feelings this morning. And by the way, I’m quite sure some of these blogs on the libertarian circuit are “sponsored” by various parties” as go-to sites.

I do go to them. But I still think my own thoughts.

Zerohedge:

“Today, BusinessWeek’s Michael Serrill and Jonathan Neumann have released a blockbuster report based on a FOIA response by the Treasury, which proves that in America rules are only for little people, that this country has been a banana republic for years, that Animal Farm was spot on, and gives excruciating detail of how Hank Paulson tipped off a select group of Goldman diaspora hedge fund managers about the eventual failure of Fannie and Freddie 7 weeks ahead of this information becoming public knowledge. The report basically is a summary of a meeting that took place at the offices of Eton Mindich’s Eton Park headquarters on July 21, 2008, 7 days after his famous ‘“If you have a bazooka, and people know you have it, you’re not likely to take it out,” speech and 7 weeks before both GSEs effectively filed for bankruptcy and were put into conservatorship. Now if it only ended there it would have been fine – a case of potential criminal collusion between the government (although nothing specific against Paulson as he didn’t actually trade: he just made sure his former Goldman colleagues made money), and the 0.00001% in the face of a few multi-billionaires who most certainly did trade on material non-public information sourced by Hank. Where it however gets worse is when one considers the actual role of one Eric Mindich in the hierarchy of the Asset Managers’ committee of the President’s Working Group on Capital Markets, better known of course as the PPT: a topic we discussed first back in September 2009 when we asked “What Is Goldman Alum Eric Mindich’s Role As Chair Of The Asset Managers’ Committee Of The President’s Working Group?” Back then we did not get an answer. Luckily, courtesy of a few answered FOIA requests, some real investigative journalism, and not reporting for the sake of brown-nosing just so one can get soundbites for their next name dropping “blockbuster” and straight to HBO movie, we are starting to get the full picture of just how high in US government the Goldman Sachs controlled “crony capitalist” adminsitration truly runs.

Before we get into the details of Mr Mindich’s curious relationship with the government, here is the gist of the BusinessWeek piece, which as noted focuses on Paulson who “said he had erred by not punishing Bear Stearns shareholders more severely. The secretary, then 62, went on to describe a possible scenario for placing Fannie and Freddie into “conservatorship” — a government seizure designed to allow the firms to continue operations despite heavy losses in the mortgage markets.”

The gathering comprised some of Wall Street’s most storied investors. Mindich, a former chief strategy officer of New York- based Goldman Sachs, started Eton Park in 2004 with $3.5 billion, at the time one of the biggest hedge-fund launches ever. [Dinakar] Singh, a former head of Goldman’s proprietary-trading desk, also began his fund in 2004, in partnership with private- equity firm Texas Pacific Group Ltd. Lone Pine’s [Stephen] Mandel worked as a retail analyst at Goldman before joining Julian Robertson’s Tiger Management LLC, one of the most successful hedge funds of the 1980s and 1990s. He started his own firm in 1997. [Daniel] Och was co-head of U.S. equity trading at Goldman before founding Och-Ziff in 1994. The publicly listed firm managed $28.9 billion in November. One other Goldman Sachs alumnus was at the meeting: Frank Brosens, founder and principal of Taconic Capital Advisors LP, who worked at Goldman as an arbitrageur and who was a protege of Robert Rubin, who went on to become Treasury secretary.

In other words the point of the meeting was nothing short of the former Goldman CEO telling all his former Goldman colleagues just what he was planning on doing in his capacity as Treasury Secretary.

Others also benefited: Non-Goldman Sachs alumni who attended included short seller James Chanos of Kynikos Associates Ltd., who helped uncover the Enron Corp. accounting fraud; GSO Capital Partners LP co-founder Bennett Goodman, who sold his firm to Blackstone Group LP in early 2008; Roger Altman, chairman and founder of New York investment bank Evercore Partners Inc.; and Steven Rattner, a co-founder of private-equity firm Quadrangle Group LLC, who went on to serve as head of the U.S. government’s Automotive Task Force.”

The Invisible Wealth Of The Rothschilds

Accounting for the Rothschild Wealth and Influence

by Markus Angelicus: November 21, 1997 :

Morton (1962) noted that the Rothschild wealth was estimated at over $6 billion US in 1850. Not a significant amount in today’s dollars; however, consider the potential future value compounded over 147 years!

Taking $6 billion (and assuming no erosion of the wealth base) and compounding that figure at various returns on investment (a conservative range of 4% to 8%) would suggest the following net worth of the Rothschild family enterprise:

$1.9 trillion US (@ 4%)
$7.8 trillion US (@ 5%)
$31.5 trillion US (@ 6%)
$125,189.1 trillion US (@ 7%)
$491,409.0 trillion US (@ 8%)

To give these figures some perspective consider these benchmarks:

A little of $300 billion US buys every ounce of gold in every central bank in the world (see John Kutyn’s estimate (http://www.gold-eagle.com/gold_digest/kutyn111597.html).
U.S. M3 money supply August 1997 was $5.2 trillion
U.S. debt is currently $5.4 trillion.
U.S. GDP (1997; 2nd Q.) is $8.03 trillion.
George Soros’ empire is worth an estimated $20 billion.

Arnaud de Borchgrave writes on April 28, 2011 in The Washington Times:

(You will see that his assessment of the crisis is exactly mine)

“An original $100,000 stake in Mr. Soros‘ fund was worth $150 million by 1994. Between 1970 and 2000, the return was 3,365 percent. (For 10 consecutive years, it did 42.6 percent per year.) In 1992, Mr. Soros bet billions against the British pound – and broke the Bank of England (“Black Wednesday”).

Comment:

I needn’t remind you that this is BEFORE the bursting of the stock market bubble, 9-11, the 2003 stock market revival that was stimulated by the Iraq war, the housing bubble, the 2008 crash, and the gold boom, all of which provided ample opportunities for people in the know to make killings in the market.

Related Posts

The 24..er..4 Companies that Rule the World

See also Zahir Ebrahim: My Experiments In Confusion: The Invisible House of Rothschild

and Zahir Ebrahim: My Experiments In Confusion: The Omnipotent Rothschilds

and Arnaud de Borchgrave: Geneva Gnomes’ Global Dread

(hat-tip to WeAreChange.org, Oklahoma)

Deconstructing Soros’ New World Architecture

BCCI: Hit Man For The IMF

Soros: Front For N.M. Rothschild

The CIA, the US Govt, the Stock Market, and Drug-Running

John Paulson’s Man at Treasury Will Design Regulations

Civil Society + Internationalist + Anonymous = World Government

The Easter Bunny On the DTCC

Another False-Flag

“We’re done folks. CNBC is reporting that there are now clients running out of the markets entirely because they do not believe their customer funds are safe. That’s the end of it. The belief that there are more MF Globals has now taken hold. The thieves have pushed it too far and now we’ve got the start of a global liquidity run, and with good reason”

—  Karl Denninger at The Market Ticker

[Gerald Celente, noted financial analyst and publisher of The Trends Journal, said recently that he’d lost six figures in the collapse of MF Global, which owned his commodity futures brokerage file and filed for bankruptcy on October 31, 2011. MF Global was headed by corrupt ex-Goldmanite Jon Corzine, who has resigned from MF and  is now being sued by investors.

Celente then called for a run on the banks on a show with talk radio host, Alex Jones, an anti-NWO activist:

“When I say take your money out of the banks and put it under the mattress, this is not advice,” Celente says. “Personally, I buy gold coins from reputable companies. I take my money out of investment funds and I buy gold and silver. You need the three g’s — gold, guns and a get-away plan.”

Celente has called for “direct democracy” recently,  a demand that I think is in tune with what the financial elites want. That’s what made me think the MF collapse was being used as a false-flag of some kind.

It was, maybe, intended to provoke a run and Denninger is amplifying it.

I recall that Max Keiser (a former derivatives trader and leftist who has now set himself up as a critic of derivatives) tried to provoke a bank run on JP Morgan, by telling people to go buy silver in December 2010.

Keiser disengages himself from Al Gore these days, but he still believes in anthropogenic global warming and the need for something to be done about it.

He seems to want chaos and confrontation on the streets, according to those who follow him closely. He is in favor of a carbon exchange, which, as a trader, he probably knows would be very lucrative for insiders.

On the forums of PrisonPlanet, one observer notes that Keiser claimed that if silver went to $47, JP Morgan would collapse.  Well, silver went to $49 this year, and JP Morgan is still around.

I have no idea what Celente’s role is in all that, but it’s all mighty suspicious to me.

He has, for instance, said that he is “all for this Occupy Wall Street”.

No ifs, no buts. No reservations. No questions.

It’s all good, for Mr. Celente. It’s all democracy, even thought it’s apparently paid for by billionaire George Soros, to whom the CIA has essentially outsourced its functions.

I didn’t comment on the story before, not knowing what happened exactly, but now I’m beginning to think it was intended to provoke a run and maximum panic. Apparently, it’s had that effect.

Celente and others are also promoting “direct democracy”, which, like “full transparency”, is something the elites want, whatever its inherent merits. Those merits aren’t the point. The elites will use whatever tool they can.

The point is direct democracy in which the social media is manipulated anonymously by intelligence agencies, corporations, governments, and media shills, is  tyranny by another name.

Here is what I wrote about Celente last month.

Gerald Celente Stabs anti-NWO Folks Front, Back, and Center, October 14, 2011:

I do not  say that direct referendums necessarily lack merit. They might work, were we living in small city states…. and were the internet discontinuous, fragmented, and highly private…. and were most people rational, well-educated, self-critical and self-reliant.

But we aren’t, it isn’t, and they aren’t.

So Direct Internet Democracy will not be anarchism, right or left, and it won’t be Christian liberty. Nor will it be federalism or decentralization.

It will be the direct control of the masses through electronic networks, propaganda, surveillance, and co-option of alternative mouthpieces of all stripes, across the board.

Direct Electronic Democracy = Tyranny

I call it Direct Electronic Action for Tyrants and Demagogues

Which equals DEATH. The death of true liberty.

Ames: Tax The 1% At 91%

Mark Ames in a nutshell (which is exactly where nuts belong);

“The eXiled has set up an emergency “deficit crisis” website calling on America to restore President Eisenhower’s top tax rate on the wealthiest 0.1% Americans: RATFOCR. Everyone agrees that the Golden Age for America’s middle-class was under President Eisenhower, when the top tax rate reached 91% for the wealthiest Americans.”

There you have it. 91% taxes is confiscatory. Why not 100%, though? I mean, if it’s all so righteous, just take everything and split it up. Why stop at 91%?

The point is who decides what’s rich? $250000 sounds like a lot of money to most people, including me. But if you have a lot of expenses and are a businessman in New York, it might not be.  Of course, here comes Felix Salmon to say let’s just check your bank balance and tax you if you have $5 million plus. But, suppose you got that $5 million by not having a family, scrimping and saving, and suppose you actually earned much less than $250000, say $100,000? Suppose you have sick relatives or you wanted to bankroll some charity dear to your heart, or to spend the end of your life pursuing your dream, after years of deferring it? What if you hold the savings for an extended family or for relatives living in unstable countries? Who sorts all that out? Mark Ames?

How fair is that? You not only didn’t get the use out of your money, you didn’t get interest from it, because the banks were speculating on it and losing money, and now you have to subsidize the people who spent their money (and got the use of it) or actually debased or stole other people’s money?

I haven’t studied Eisenhower’s tax policies, but if this was his tax-rate, the economy was prosperous in spite of it.  Income disparities today are extreme, but they are caused by all kinds of hidden and open subsidies and redistribution schemes.  Undo them and you won’t have to confiscate property.

“Flash Crashes” Suggest Market Trouble?

Update (Sept 29, 5:54 PM):

Just a thought. Could a DHS cyber security exercise scheduled for this week have had anything to do with these two market “accidents”?

According to this report, the following sectors (among others) were to have been targeted for several days this week:

“This year’s exercise will be the largest yet, including representatives from seven cabinet-level federal departments, intelligence agencies, 11 states, 12 international partners and 60 private sector companies in multiple critical infrastructure sectors like banking, defense, energy and transportation.”

The markets aren’t specifically mentioned, but then you’d expect that if they were the chosen target…

ORIGINAL POST

Peter Cooper at Arabian Money argues that an apparent Google “flash crash” last Friday signals a market correction in the offing:

“It also seems pretty clear that Wall Street insiders flicked the sell switch at the weekend. That would account for the ‘accidental’ Google flash crash last Friday (click here). You bet against this crowd at your peril.

On this reckoning the gold pit action is just a last burst of optimism from latecomers to the party. For the gold price will surely dip (if not to much more than $1,150) in a big sell-off in financial markets, and silver will also fall back below $20.”

Meanwhile, Rick Ackerman points to a mini flash crash that apparently took place on Tuesday night in the gold futures market…..and explains why Bob Prechter has been wrong for the last 18 months – he’s an expert in real markets, not completely rigged ones…

I’ll admit that I’m glad to see this because of my own market bias, which has left me a bit lonely waiting for some kind of correction in the gold price.

Years of making my very own patentable blunders have made me much more comfortable being wrong on my own rather than being right in a crowd…..

But there does seem to be some technical evidence that a correction might be due.

Vatican Bank Being Investigated For Money Laundering

From Newsmax comes a report that the head of the Vatican bank is being investigated for money-laundering. This is not the first time the the Institute for Religious Works (IOR), as it’s called, has come under suspicion for less than good deeds. It  was also involved in the Banco Ambrosiano scandal in 1982, a scandal that’s even found its way into pop culture (for eg. in The Da Vinci Code and in a recent TV drama).

“The head of the Vatican bank is under investigation for suspected money laundering and police have frozen 23 million euros ($30.21 million) of its funds, Italian judicial sources said on Tuesday. Neither Ettore Gotti Tedeschi, who has been at the helm of the bank for a year, nor the Vatican spokesman would comment immediately on the case, which involves alleged violations of European Union money laundering regulations.

The sources said Gotti Tedeschi and another executive of the Institute for Religious Works (IOR), as the bank is officially known, had been put under investigation by Rome magistrates Nello Rossi and Stefano Fava.

The sources said Italy’s financial police had preventively frozen 23 million euros of the IOR’s funds in an account in an Italian bank in Rome.

Two recent transfers from an IOR account in the Italian bank were deemed suspicious by financial police and blocked.

One was a transfer of 20 million euros to a German branch of a U.S. bank and another of 3 million euros to an Italian bank.

Gotti Tedeschi, a devout Catholic who has taught financial ethics at the Catholic University of Milan, is a close adviser to Treasury Minister Giulio Tremonti.

He is currently also head of an Italian unit of the Spanish Banco Santander , according to its website, and serves on the board of several major Italian banks.”

Read the rest of this piece at Newsmax.com.

More details at Associated Press.

Deconstructing Soros: “A New World Architecture”

From George Soros on Project-Syndicate.org. (Nov. 4, 2009), his vision of the new world order.
My comments are in italics.

NEW YORK – Twenty years after the fall of the Berlin Wall and the collapse of communism, the world is facing another stark choice between two fundamentally different forms of organization: international capitalism and state capitalism. Continue reading

Soros Blames Germans For Being Fiscally Responsible

Reuters reports (June 23, 3010) that Soros is wringing his hands over Germany’s savings policy:

Germany’s budget savings policy risks destroying the European project and a collapse of the euro cannot be ruled out, billionaire investor George Soros said in a newspaper interview released on Wednesday. Continue reading

Eric Janszen On The Bubble In Economic Fallacies

Eric Janszen at iTulip on how the masses never connect an excess of past circuses with a deficit of current bread:

“Ten years from now, when the full impact of the U.S. asset bubbles of 1998 to 2008 are fully felt, the dot com era, when money flowed like oil from a geyser, before the wars and financial crisis, will be remembered as the good old days, the high water mark for American power and influence. Not one in a million Americans will connect the antecedents to financial crisis and excessive government borrowing to the inflation that we will experience in the future. Not our readers, of course. Continue reading

World Gold Council, Rothschild-backed Fund Buy Stakes In BullionVault

London’s BullionVault, an Agora friend and possible partner/affiliate, and,  so far as I know, a very reputable firm has recently announced that the World Gold Council and Augmentum Capital (backed by Jacob Rothschild’s RIT Capital) has bought stakes in it, in return for a 12.5 million P. investment. I must say I’m not too happy about the news and may look into James Turk’s Gold Money as an alternative. The World Gold Council has been an integral part of the gold-suppression scheme that is at the heart of the financialization of the economy from 1970 onward. (Full disclosure: I have an account at BV). Continue reading

Gold Reacting To Anxiety, Says ECRI Chief

Lakshman Achuthan, managing director of the influential Economic Cycle Research Institute, has said he’s sure the economy is “rolling over” but can’t definitively call it a recession yet.  Today he adds that the elevated price of gold signals anxiety more than inflation concerns. ECRI has a good track record as a trend predictor, from all accounts. On the other hand, it’s also true that gold is hitting new highs and the financial media has to put a good spin on that. Wall Street doesn’t like physical gold, because whenever it dominates the news stories, it undermines the stock and fund selling on which the Street mainly depends. Continue reading

The Huggable Hedgie: Einhorn, Fairy-Tales, And The “Activist” Gravy Train

Mark Mitchell at Deep Capture on well-known hedge-fund “activist,” David Einhorn:

“In addition, Allied was not, as Einhorn claimed, a massive Ponzi scheme. Einhorn had made the smarmy suggestion that Allied was a Ponzi because it supposedly raised money from the markets to pay its dividends. An SEC official told the inspector general that this claim was patently false – it was perfectly obvious that Allied legitimately paid dividends out of earnings. Continue reading

Sudha Shenoy: The Evolution Of Accounting (Bibiliography)

Organizations and Markets has a brief bibliography of the evolution of accounting by the distinguished libertarian economic historian, Sudha Shenoy. Accounting emerged without state intervention as a type of Hayekian spontaneous order:

Someone asked whether accounting conventions can be interpreted as a kind of “spontaneous order,” in Hayek’s sense, or if the standard rules are the result mainly of state intervention. Sudha replied with these reading suggestions (lightly edited by me): Continue reading

Jamie Dimon Weighs In On “Too Hot” Former Citi Employee?

Update:

The case gets stranger. Lorenzana was on a 2003 TV serial, giggling about breast implant surgery she’d had. Knowing that, would any lawyer have framed her case the way it was? Of course, this doesn’t mean she wasn’t the target of harassment. The surgery itself says nothing. It’s commonplace. Do men who take viagra or steroids lose their civil rights? No. And a competent corporate lawyer would, of course, make it the first order of business to establish that the plaintiff in a harassment suit was a slut and “asking for it.” That’s quite usual. But I remain suspicious why this story, like the Helen Thomas story, has suddenly become so prominent….Maybe to create a little sympathy for the banks? Take the focus off the Gaza flotilla? Continue reading

Rothschild (Dec. 2008): Buy Bonds, Oil, and Raw Materials

Video 1: An interesting interview by Maria Bartiromo of Sir Evelyn de Rothschild on the financial crisis (December 2008). Here’s a quick break down of his main points: Continue reading

9-11 Related Stock Fraudster Elgindy Tipped Off By SEC Officers

Dow Jones

“Two U.S. Securities and Exchange enforcement officers released nonpublic SEC information to a Federal Bureau of Investigation agent and a short seller who were convicted of securities fraud and conspiracy in 2005, an SEC watchdog’s report said Tuesday. One SEC officer on several occasions talked with the FBI special agent about the progress of agency probes of companies, Inspector General David Kotz said in his semi Continue reading

Copper Heads South

“Dr. Copper” seems to be telling us something:

“Copper dropped sharply Monday as the general sour mood about Europe and the global economic rebound was heightened by news of rising copper inventories.

Copper for July delivery lost 20 cents, or 6.5%, to $2.93 a pound on Comex. That’s the lowest price for a most-active contract since early February.

The LME reported Monday a rise in copper stocks in South Korea, the first in that country since January, applying further pressure on prices, analysts at Commerzbank said in a report.”

John Hussman: Not Concerned About Inflation

John Hussman:

“The bottom line is that we can expect real wages to stagnate for several years, as a predictable reflection of slack capacity in the labor market. While credit concerns will be helpful in augmenting the demand for U.S. government liabilities as a default-(food poisoning)-free alternative to other assets, there is a continued prospect for significant price inflation beginning in the second half of this decade. With the ECB surrendering monetary discipline for the sake of short-term expedience, that prospect has become even more hostile. Continue reading

IMF Global Currency (SDR) Likely In Next Two Years

From Giordano Bruno at Neithcorp Press:

“Goldman’s involvement in the Greek snafu is assuredly not isolated.  Goldman deals with many countries and has likely pulled the same scam everywhere.  But why would a large international bank deliberately sabotage the economies of the countries it does business with?  Would this not ruin the banks as well in the long run?  Not if you consider the possibility that Goldman is destabilizing countries deliberately to help the IMF… Continue reading

Where In The World Is Iraq’s Gold?

A thought occurred to me late at night. Do you remember these stories from the Iraq war?

WASHINGTON (CNN) –For the second time in a week, U.S. troops have discovered what appears to be a cache of gold bars hidden in a truck, which could be worth just less than a quarter of a billion dollars, according to a Pentagon official. Continue reading

Radio Interview: CFUV.UVIC.CA, May 10, 2010

Update: Here’s Chris Cook’s radio interview of me on University of Victoria Radio, May 10, 2010.

I’m in the last third. As it was, we didn’t talk much about the crisis, except a bit at the end. We talked mostly about how libertarians suddenly became too dangerous to be allowed across the border.

ORIGINAL POST:

I’ll be talking with Chris Cook of The Peace and Earth Justice website and University of Victoria Gorilla radio show about the financial crisis and the call for regulation; also, about Canada’s increasing unfriendliness to free speech on political matters.

A Preview of the Program:

GR 05-50 101.9 FM 104.3 Cable ‘cfuv.uvic.ca

Monday May 10, 2010

5:00:00 3:00 Welcome to GR, etc. Gordon Campbell’s Liberal party has promised it will enact the Harmonized Sales Tax, or HST come hell or high water; and he may get plenty of both. To call the opposition to the tax popular in B.C. merely scratches the surface of the deep dissatisfaction felt in Canada’s westernmost province. After watching nearly a decade of service cuts, and relentless tax relief to corporations and the wealthiest of British Columbia’s citizens, more tax rises for the working class is about as welcome here as as communicable disease. Resistance to the proposed HST has organized, and petitions currently making the rounds in every voting jurisdiction are piling up signatures, hoping to reach a level that will force the government to back down. Brad Slade is a long-time labor activist and he’s the Regional Organizer for the South Island and the Islands with Fight The HST. Brad Slade in the first half.

And; what lies behind the recent economic meltdown in the United States?

Years of deregulation on high-flying financiers and the introduction of increasingly exotic investment vehicles created a bubble economy whose collapse now threatens the entire global economy, but who is to blame? Lila Rajiva is a journalist and author, whose book titles include: ‘The Language of Empire: Abu Ghraib and the American Media,‘ and ‘Mobs, Messiahs, and Markets’, co-written with Bill Bonner. Her articles are available on the internet at CounterPunch, Dissident Voice, and Lew Rockwell.com, and in mainstream sources such as The Washington Post and The Hindu.

Lila Rajiva and the politics behind financial calamity in the second half.

And; Victoria Street Newz publisher and CFUV broadcaster, Janine Bandcroft will be here at the bottom of the hour to bring us up to speed on the view from Victoria’s burgeoning street society. But first, Brad Slade and B.C.’s tax revolt in the making.

5:03:00 21:00 Discussion w/ Brad Slade

“Welcome back to the show, Brad; it’s been a few months since your last visit here; what’s the latest on the Fight the HST front?”

5:24:00 1:00 Cart(s)

5:25:00 10:00 Janine Bandcroft

5:35:00 3:00 Music

5:38:00 21:00 Discussion w/ Lila Rajiva

Welcome back to GR, etc.

Just what lies behind the recent economic meltdown in the United States? Years of deregulation on high-flying financiers and the introduction of increasingly exotic investment vehicles created a bubble economy whose collapse now threatens the entire global economy, but who is to blame?

Lila Rajiva is a journalist and author, whose book titles include: ‘The Language of Empire: Abu Ghraib and the American Media,‘ and ‘Mobs, Messiahs, and Markets’, co-written with Bill Bonner. Her articles are available on the internet at CounterPunch, Dissident Voice, and Lew Rockwell.com, and in mainstream sources such as The Washington Post and The Hindu.

“Welcome back to the program, Lila; we initially planned to discuss an economics forum that took place in Vancouver over the weekend. What is that forum about, and why were you not in attendance?”