Fiscal Genocide: A History Lesson in Financial Corruption

 

Image Credit: Dan Smith

Image Credit: Dan Smith

Washington, DC (TFC) – This article is part one of a series exploring the relationship between the collapse of the German economy after World War I, the Kennedy assassination, and the corrupt central banking system.  The series as a whole is my defacto warning of what may be on the horizon for the US in the near future.  This particular article explores the history of Germany’s economic collapse in the 1920s, the ominous similarities to the US’ current financial crisis and how the Federal Reserve and World Banks are at the core of global financial corruption.

In an article about the impending currency collapse, I spoke at length about Karen Hudes, a former World Bank lawyer-turned-whistleblower.  In an interview with Red Ice Radio, she says, “There is a corrupt allegiance of corporations attempting to hold the world’s gold hostage.”  On May 13, 2013, Hudes was arrested for trespassing at the World Bank Headquarters in Washington D.C., the building where she worked for the legal department of the World Bank since 1986.  If there is someone who knows the inner workings of the world’s financial systems it is her.  When she brought evidence of corruption to her supervisors at the World Bank, she was immediately fired and a private security firm was hired to keep her from reentering the building.  My attempts to contact Hudes have not been succesful.  The most recent correspondence with her that I can find was in April of 2014.

According to Hudes, there is a designed plan to crash the world’s paper currency.  Over the past few years, 170,500 metric tons of gold boullions have been consolidated into a series of US banks and treasury department vaults.  This is all of history’s gold being put into one place.  There is enough gold to turn every human being on the planet into a millionaire overnight.  Over $9 quadrillion worth of gold, in fact.  If we round the world’s population up to an even 7 billion, $9 quadrillion is enough to give every human being on the planet $1,285,714.  Plus, if it’s solid gold in your hands it will virtually never depreciate in value.

No, I am not quoting a script from an episode of Game of Thrones.  This is reality.

Throughout my investigation into Hudes’ claims and her credibility, I have discovered she consistently refers to JFK and his plan to put the US back on the gold standard.  She says this decision is directly related to his assassanation.  She is not the first person to make this observation.  In the second article of this series, I will explore in detail the significance of the Federal Reserve in the JFK assassination.

The US Constitution states that only Congress shall coin and regulate money.  This is not the system we have in place today, nor was it the system in place in 1963, the year Kennedy was murdered.  The Federal Reserve prints currency, with no gold-value equivalent, and loans it to the US Treasury Department with interest.  The Federal Reserve is the source of all currency in America.  The system of interest from inception is what determines inflation rates.  If the Federal Reserve is producing more money than its interest rates are generating profit, inflation rates rise.

In 2013, the Federal Reserve increased its currency production from $40 billion a month to $85 billion a month, or $1.2 trillion a year.  In 2013, the Federal Reserve’s total revenue was $79.5 billion.  $77 billion of that went to the US treasury department.  In other words, the US government made about an 8% return on the Federal Reserve’s $1.2 trillion investment.  The remaining $2.5 billion was profit for the Federal Reserve, a private corporation.  This cycle of endless debt, inflation, and one-directional profit is called “quantitive easing”.  Kennedy reasoned that the insurmountable US debt could be drastically reduced if we stopped using this crooked system of endless interest-profits being paid to the Federal Reserve Banks.

This graph shows how the Federal Reserve has recorded record high profits since the beginning of the current financial crisis.

 

On June 4, 1963, less than 6 months before his death, Kennedy signed Executive Order 11,110.  This Executive Order called for the issuance of $4.3 trillion through the US Treasury Department rather than the Federal Reserve.  The same day, Kennedy signed a bill that made one and two-dollar notes backed by gold instead of silver.  Kennedy also made bold attempts to crackdown on offshore tax-havens, monopolized steel corporations, and the dominant oil and gas companies.

In a 2013 article titled, “The Federal Reserve is Making a Big Mistake,” Richard Finger of Forbes.com says, “So-called “tapering” of quantitive Easing [QE] was indefinitely placed in deep freeze…until such a time the US economy is more robust.”  He goes on to say that gold and oil asset values drastically increased following this previously unheard of period of inaction taken by the Federal Reserve.  Gold rocketed up $59, or 4.4%, and oil surged 2.5%.  Over the course of 2014, we saw oil prices steadily rise to near-record highs and then plummet to record-lows, in the context of recent memory at least.  We saw the continued urging from banks and private institutions to “Sell your Gold!” as we have throughout the last few years.

One of the numerous gold exchange stores found throughout the country.

 

The next time you’re on the freeway, count how many “We Buy Gold” signs you come across.  Think about it.  What will happen when gold is what has all the value and currency inevitably collapses and is abandoned?  If the majority of the country is either forced to sell their gold, to pay their inflated mortgages for example, or chooses to sell it to cash in on the surge in gold prices, what will happen if the Federal Reserve and World Bank pull the rug out from under us and the paper you traded all your jewelery for is only worth as much as the paper your unemployment slip is printed on?  Perhaps historical hindsight will shine some light on the possible outcomes of this virtually certain hypothetical situation.

Germany tried a very similar approach to financial reparations after WWI as what the Federal Reserve is doing in the US.  As usual, a lot can be learned from the failures of history.  A quote from Scientific Market Analysis has chilling resonance in modern society,

“The inflation was caused by the government issuing a flood of new money, causing prices to rise.  Then, as the inflation gained momentum, events seemed to demand the printing of larger and larger issues of currency.  To [cut in half] the process would have taken political courage, and this was lacking.  As usual, the true facts were hidden behind a barrage of excuses, explanations and propaganda laying blame on everyone except the true culprit.”

This quote is not in reference to the economic collapse in 2008.  It is referencing the collapse of the German economy in the aftermath of WWI.  It is uncanny how the current financial crisis compares, however.  The Federal Reserve’s largest annual stimulus currency contribution has gone from $30 billion during the Nixon years to $1.9 trillion during the Obama years.  The repercussions of this massive influx of currency can be seen in every aspect of your daily life.

The price of gas, food, housing, insurance and all other products and services have risen accordingly.  The price of a gallon of gas in 1969, the year of Richard Nixon’s inauguration, was $.35 and a gallon of milk cost $1.10.  By the time of Nixon’s impeachment, those prices had risen to $.86 for a gallon of gas and $1.62 for a gallon of milk.  In 2014, the average price of a gallon of gas was $3.33 and the average price for a gallon of milk is currently at $3.69 and is expected to raise another 60 cents by the end of the year.  This is of course ignoring the possible premiums a person would have to pay if they do not want milk from cows given massive doses of antibiotics and dangerous artificial hormones in factory farms.  To live and be healthy, you must be wealthy.

Germany went through the same process of inflation much more rapidly during the 1920s.  The history of a war is never brief and never simple.  However, in simple terms, WWI was Germany’s attempt to usurp the British empirical rule of Europe and Asia.  Germany failed miserably and suffered massive sanctions and taxes that were imposed by the Versailles Treaty after Germany’s defeat in WWI.

During WWI, Reichbank (Germany’s Central Bank) took away the ability to redeem the German Franc for gold, just the same as the Federal Reserve did with the US dollar.  It then repealed the laws regulating the amount of currency that could flow through the economy.  Reichbank then began to pump massive amounts of paper currency into the market just like the Federal Reserve is doing now.  The amount of money circulating through war-torn Germany increased four-fold by 1918.  This resulted in the total debt of the Reichbank catapulting from $3 billion to $55 billion in just a few years.  The US debt has catapulted from $350 billion in 1969 to $18 trillion in 2014.  Almost $12 trillion in debt has been accumulated since 2001.

This graph shows the increase in US national debt since WWII.

 

The members of the German workforce were working long hours for meager pay and had little incentive or time to spend money in a war-depleted society.  In fact, during this period of quantitive easing in Germany, workers were getting paid as often as 3 times a day.  Stores ran out of food and merchandise.  Farmers stopped bringing produce into cities.  Farms were raided.  Food riots broke out.  Thus, all that was accomplished was consolidation of valuable gold and overproduction of worthless currency.  Combine this with the massive war reparations payments Germany had to make and the end result was a rich majority that saw the financial crisis as an opportunity to cash in on a botched war effort, like Wall Street saw with Iraq and Afghanistan.

German food riots in 1917

 

The 1920’s saw complete economic ruin in Germany.  The German Franc dropped to one-four-hundredth of its value.  The German government’s revenue from income tax plummeted from 54% in 1913 to 28% in 1925 due to massive unemployment.  Currently, the US generates less than 10% of its GDP from income tax revenue.  8% of that comes from the working class, despite their significantly lower wages.  So, a global corporate institution like Wal-Mart, the world’s richest corporation, that has a listed net revenue of $477 billion pays less in terms of tax percentage than the mass of minimum wage hourly workers that it employs.

The minimum wage is not a living wage.  Any argument that continues to be made in defense of that claim is invalid before it begins.  It is proven that a person cannot be supported on minimum wage working a 40 hour schedule.  On top of that, it is also likely that without making any drastic changes to the current corporate structure, a minimum wage of $15-$20 an hour could be implemented with very little impact to the already lopsided bottom lines of major corporations.  CEO’s could keep their gross multi-million dollar salaries and bonuses and their workers would be able to live slightly more comfortably.

Also, it takes only simple arithmetic to realize that there will be twice as much federal income revenue if the working class is paid twice as much.  With the working class paying 4 times more, percentage wise, in income tax, federal revenue would increase dramatically.  With extra income, workers will be more inclined to spend money.  Most likely, the majority of that extra spending money will be invested back into corporations.  Pandering to your workforce is not a solution to the overarching problem, however.

Germany provides an insight into the end result of this kind of financial pandering.  Despite German investment in infrastructure and public works projects, cowardly financial institutions continued to overinflate the devastated economy until it failed completely.  The ensuing poverty, hunger, and desperation are what allowed the Nazi Party to gain momentum and rise to power.  Desperate people are often willing to make tremendous moral sacrifices for passionate speakers full of powerful promises and contagious confidence.

Nuremberg rally in 1924. History remembers Hitler. However, without this obedient sea of supporters he would never have risen to power.

 

Through the Brutality of the Nazi Party, the charisma of Hitler, and the admonished submission of the German people, Germany’s economy began to offer comfort, even riches, to those that were obedient.  Those that questioned the rule of Nazi law were beaten, gassed, tortured, experimented on, imprisoned, and eventually killed.  The inherent human desire for comfort and stability is in direct convalescence with the inherent human desire for power and the innate human trait of greed.  Greed and empirical quest for power require obediance for success.  No army has ever remained undefeated.  No empire has ever not fallen.  However, history’s longest lasting empires have endured centuries through the systematized distraction and overstimulation of the affluent ruling-class and impoverished slave-class.  It is the task of turning slaves into patriots that truly creates an empire that endures, however.

In that sense, the US has succeeded brilliantly.  Our corporate structure of endlessly dividing the workforce into a labrythian array of managers and assistant managers, vice presidents, vice chairmen, chief officers, chief executives etc… has created an incentive for those that view material wealth as the benchmark of success to dedicate their entire lives to “climbing the corporate ladder”.  In reality, they are chasing incremental raises in income that do not correspond to the often substantial increase in responsibility.  In conjunction, as they reach higher levels of corporate influence, they will be forced to weigh their morals against the demands of their employer.  As their income increases, they are encouraged to neglect the income of the unskilled mass of workers that they were once a part of.  If they continue to sacrifice their moral obligations in favor of their corporate obligations, the system of wage-slavery and dependency is perpetuated.  They are being guided by the demands of their employer, not by their own pursuit of happiness.

Once the corporate ladder has been “ascended,” an executive is rewarded with exorbitant, unfair and unneccessary compensation, often in the millions of dollars.  Along with that, comes a new tax bracket and hordes of tax incentives that hourly workers will never be capable of attaining.  Once an individual has reached this level of influence, they are miles away from those that are affected by their decisions regarding wages and benefits.  Much like a drone pilot is miles away from his intended target, a corporate executive develops a detached sensibility in regards to his workforce.  He is dealing with statistics and fiscal data, not human beings.  He is awarded with praise and money when the right numbers are higher.  The people whose lives were ruined in his “brilliant corporate maneuvering” may not ever even register in his brain.

In addition, the politically correct moniker of “minimum wage” is in reality the slave wage.  By taking it, you must sacrifice all other aspects of your life, such as hobbies, family, and pursuit of happiness to attain stability.  By rejecting it, you must engineer a new solution to avoid poverty and misery, introducing a previously foreign brand of sacrifice.  However, rejecting your programmed dependency translates to real freedom because with this decision comes the ability to pursue a life that fits your definition of success and the responsibility to define that success in a way that benefits mankind.  With this responsibility also comes discomfort and ostracism.  Thus, it can be reasoned that comfort and obediance are the absolute antitheses of freedom.  To truly be free, one must struggle with discomfort and uncertainty.

In America, we foster the idea of opportunistic capitalism.  How many times in your life has someone said to you, “If you work hard you can do anything”?  The reality is much bleaker.  The truth of capitalism is if you are willing to pursue endless wealth and consolidation of power by any sociopathic means possible, ignoring any and all ramifications that do not apply directly to you, by using any morally subjective means at your disposal you may obtain near-complete financial dominance.  By way of economic slavery, a small number of corporations have risen to a level of power and influence that Sultans of eras past must look upon with envy from their golden tombs.  90% of small businesses now fail or are sold to a corporate parent within 2 years.  The tenets of this economic slavery are governed by the Federal Reserve and World Bank.  Nearly all the currency circulating in the world is flowing in their direction.

After WWI, the British empire was in a vulnerable state, both politically and financially.  American financial elites like JP Morgan saw the profit-potential of this weakened empire and quickly erected  2 new, centralized financial institutions to establish an economic means to profit from the carnage and confusion for years to come.  In 1913, the year before Germany’s Reichbank began its quantitive easing program, the Federal Reserve Act was signed.  In 1944, the year before the end of WWII, the World Bank Charter was drafted by US and British elites.

The World Bank was a means of reasserting the dominance of the business class in Europe after World War II.  During the war, support of Communism and other leftist ideologies had surged, helped in main part by the massive Anti-German assault led by the Russians, not the US.  The Soviets lost over 20 million soldiers, mostly in Europe, during WWII and were the main reason Germany was defeated in Europe.  Storming the beaches of Normandy was not what won the war.  US allies waited years before becoming involved in the war in Europe.  They waited until it was the most economically beneficial time to do so.  For decades, the US has touted its soldiers as the “Freedom Fighters” of WWII.  Like all wars, the motivations were not heroic.  In fact, an affluent group of American Nazis played a pivotal role in Germany’s war efforts.

Prescott Bush, American Nazi

 

The most prominent of them was none other than George W. Bush’s grandfather, Prescott Bush.  Bush was the director of the New York-based Union Banking Corporation (UBC) that allowed Hitler’s biggest war-financier, Fritz Thyssen, to transfer vital funds to Hitler’s war effort.  Bush and his money are directly linked to companies that built tanks, prisons, and weapons for the Nazis using slave labor from concentration camps in Germany.  Thyssen owned the largest coal and steel companies in Germany as well as many Nazi banks.  Despite his overt Nazi-alliance, as well as an indictment by J. Edgar Hoover, Prescott Bush went on to become a Senator of Connecticut from 1953 to 1962.  As a Senator, he handpicked a young politician by the name of Richard Nixon to become his apprentice.  Bush even promoted a presidential campaign for Nelson Rockefeller and Richard Nixon in 1960.  The campaign dissolved, but Nixon and Bush’s relationship was only beginning.  These are not wild, unsubstantiated claims.  They come directly from the US National Archives.

Reprint of Henry Ford’s “The International Jew”

 

Another American Nazi “Hero” is the legendary Henry Ford, founder of the Ford Motor Company and inventor of assembly line manufacturing.  Ford provided crucial raw materials like iron and steel to the Germans during war time.  In fact, Hitler even had a portrait of Henry Ford in his Chancellor’s Chambers and held a large amount of respect for Ford.  American history books convienently forget about Henry Ford’s open anti-semitism.  During the early part of the 20th century, Ford published a series of pamphlets discussing his fear and hatred of Jews, blaming them for the dissent of society in an indentical manner as Hitler did in his book Mein Kampf.  Henry Ford’s most famous volume was called “The International Jew:  The World’s Foremost Problem.”  This book of hatred was originally published in 4 volumes in the Dearborn Independent magazine in 1921.

Despite their treason and war crimes, as defined in the Trading with the Enemy Act, the Bush family is one of the most powerful political families still operating in the modern world.  Right now, a fourth generation son of the Bush dynasty, George P. Bush, son of former Governor Jeb Bush, is beginning his political career in Texas.  Henry Ford is described as an American pioneer and hero of the Industrial Revolution.

Indoctrinated history conveniently omits, or should I say redacts, the fact that the German war in Europe would have come to a grinding halt and most likely resulted in a second humiliating defeat for Germany without US funding and raw materials.  The Soviets won the war in Europe on the backs of the over 20 million dead Red Soldiers.  The US won the war in the Pacific with two giant, radioactive blasts in Nagasaki and Hiroshima.  An estimated 3% of the total human population died during WWII.   War has not stopped for the US since.  The Korean War.  The Vietnam War.  Iran Contras.  El Salvadoran Contras.  The Gulf War.  Bosnia.  Kosovo.  Operation Iraqi Freedom.  Afghanistan.  Ukraine.  The war-economy has been making too many people rich for too long to be stopped by the citing of statistics and humanitarian ramblings.

The institution that profits the most from constant global warfare is the World Bank.

The Federal Reserve produces a stimulus of trillions, the majority of which goes to the US Department of Defense.  The DOD uses those trillions to fund civil wars in places like the Middle East, South America and Africa.  The countries devastated by war, for example Ukraine, then require loans to rebuild their countries.  The lending house of the World Bank, the IMF, then lends the money with an inescapable interest-ceiling, forever enslaving the country to financial servitude.  Just last month, the IMF “loaned” $17 Billion to Ukraine.  Under the Ukraine Freedom Support Act, the US government has begun its systematic overhaul of a fledgling nation, using a US-sponsored dictator to install a rigorous totalitarian regime.  Now that the country is in economic ruin, the World Bank and IMF will profit for decades from interest payments.

Every person in this country with a house, a job, savings, a checking account, a credit card, a car, a loan, a business, a website, or lungs that draw breath pays interest to at least one bank.  Every person is also subject to government taxation.  Many government officials take your tax money and invest it back into private banks.  Banks are private corporations whose motives are profit, pure and simple.  A private corporation governs its own policy.  That is how it is legal for a bank to charge you an ATM fee to access your own money.  A percentage of every single bank’s profit goes to the Federal Reserve.  A percentage of every single dollar printed in this country already belongs to the Federal Reserve before they print it.  The more you participate in society the more you perpetuate this system of financial slavery.  In every aspect of life where money is concerned, a long enough line can be drawn to connect that money back to the Federal Reserve.

188 countries have representatives in the World Bank.  Every single one of those countries pays to have that representation.  The controlling interest in the World Bank is held by the US and EU.  3 years before “Operation Iraqi Freedom” there were 7 countries without World Bank representation.  Those countries were Iraq, Afghanistan, Sudan, Libya, Cuba, North Korea, and Iran.  The only countries currently without a World Bank are Iran, North Korea and Cuba.  If you were uncertain why 47 members of Congress committed treason against the president in regards to Iran and its alleged nuclear capabilities, you may now have some clarity.  You may now have some clarity as to why North Korea is consistently singled out as the most volatile threat to the US.  You may now have clarity as to why the US still refuses to trade with Cuba.

If there is one legitimate possible threat to the last shred of sanity and order in the US, it is a competing World Bank.  China has already begun that process.

If China undercuts the foreign “aid” loans currently held by the World Bank with these 188 countries, all false-pretense of Democracy in the US is subject to an explosive demise.  The 70 year financial dictatorship of the World Bank will be shaken to its foundation.  The World Bank would lose substantial financial stakes and a power struggle would ensue.  The population of the US would descend into panic, chaos, and civil war as colossal sums of money are removed from the economy to attempt to balance the seismic shift.  Congress would not be watching.  They would be attempting to protect their investments.  Entire corporate brands could cease to exist overnight.  Unprecedented layoffs would ensue.  The US would know poverty and misery like it never has before.  Imagine what a morally ambiguous and charismatic leader could accomplish in that scenario.

This is why understanding and correctly recording history is paramount to ensuring a future that is free of the same catacalysmic mistakes of the past.