WHO RULES THE WORLD PART 4
THE ROTHSCHILDS
In describing the activities of the Rothschild family, author Fritz Springmeier wrote, "They have indebted kings, manipulated kingdoms, created wars, and molded the very shape of the international world." This powerful banking firm had humble beginnings. The man responsible for this global banking empire was born in the ghetto in Frankfurt-am-Main in 1743, and the son of a money lender. Mayer Amschel Bauer, who eventually took the name Rothschild (which means "red shield"), had five sons and five daughters.
After his father died, he was sent to the firm of Wolf Jakob Oppenheim[er], where he learned the coin business. In 1764, he became a dealer in rare coins and metals. Mayer Amschel envisioned a very closely connected family banking empire on five continents with each son in a different country. While he started the vision and set down very strict rules for his sons, it was the brilliance and cunning of his 3rd son, Nathan, who started NM Rothschild & Sons in England that paved the way for the firm to become the first, truly, international banking cartel.
Mayer Amschel's first coin transaction was with William, Hereditary Prince of Hesse-Kassel. By the end of the 17th century, he had established himself as Frankfurt's leading dealer, not only in coins and metals, but also in all kinds of antiques. By 1797, he was one of the richest Jews in Frankfurt and his business had moved into banking. According to English historian, E. C. Knuth,
It was Nathan, founder of the British house which plays so important a role in the affairs of the City (the financial and legal part of the City of London which is in itself a private corporation and known by the same name as the larger City of London) and consequently in the affairs of all the world. Professor Usher stated in his Pan-Germanism of 1913: "Russia, Turkey, Egypt, India, China, Japan and South America are probably owned, as far as any nation can be owned in London or Paris. The world itself, in fact, pays them tribute; it actually rises in the morning to earn its living by utilizing their capital, and occupies its days in making the money to pay them interest, which is to make them still wealthier" (Knuth, p.69).
Furthermore, it was the goal of poverty-stricken Mayer Amschel to have titles of nobility. However, because they were Jewish, they were shunned and restricted from society. This went back to the first king who booted the Jews out of his kingdom because they lent at usury, something that was not done in the Christian religion. However, as lending at interest became more widespread, especially because of the rise of central banks, their integration into society became accepted.
Amschel's benefactor, Prince William of Hesse-Kassel, made his money by selling mercenaries to the rulers of Europe, so they could wage war to enlarge their kingdoms. William's cousin, King George III was one of William's largest customers, helping him with his was against the Colonies. William was pure royalty. His grandfather was George II of England. He was a nephew of the King of Denmark and a brother-in-law to the King of Sweden. The income from selling mercenaries made William the richest ruler in Europe. From a very clever business standpoint, Mayer Amschel determined he was going to be his banker and gain his business. He did so by selling him rare coins at rock bottom prices. It worked and soon he was selling to other members of royalty.
According to Frederick Morton, Mayer was at the right place at the right time. Since the entire treasury of Denmark consisted of a deficit, and William had a huge surplus, the question was how to help his uncle, the king of Denmark? William could not do it, directly, because of delicate family ties. So he used his kingdom of Denmark as collateral to cut a deal, incognito, with an obscure bank, like the Rothchilds' (Morton, 36).
However, it was Napoleon who really enriched Mayer Amshel Bauer who by that time had changed his name to Rothschild. Napoleon was determined to rid Europe of Prince William and so, as the prince fled Napoleon, he entrusted Rothschild with $3M. His son, Nathan, who established banking interests in England, invested this money in "gold from the East India Company, knowing that it would be needed for Wellington's peninsula campaign." On the temporarily stolen money, N. Rothschild made four profits before he returned it to the Prince with interest: (1) on the sale of Wellington's bonds which he bought at 50 cents on the dollar and collected at par, (2) on the sale of gold to Wellington, (3) on its repurchase, and (4) then selling it to Portugal.
Furthermore, the Rothschilds funded both sides of the Napoleonic War with their various banks across Europe. Because of their unrivalled network of secret routes and fast couriers, including, pigeons, it was their intelligence system that allowed Nathan in England to provide Napoleon with important information on how the war with Wellington was going.
Nathan had a particular place (a favorite column) at the London Stock Exchange from which he would conduct business. From that position he could direct his traders, while non-affiliated traders could see if he was buying or selling, which usually set the trend for the day. After he learned that Wellington had won the war with Napoleon, Nathan stood at his post and without any expression on his face began to direct his traders to sell. This went on for most of the day. The non-affiliated traders determined that Wellington had lost, and they started to sell. Then, right before the market closed, when prices had hit rock bottom, Rothschild directed his agents to purchase all the bonds for pennies on the dollar. He had known more than they did. Biographer Frederick Morton wrote this about Nathan,
We cannot guess the number of hopes and savings wiped out by this engineered panic. We cannot estimate how many liveried servants, how many Watteaus and Rembrandts, how many thoroughbreds in his descendants' stables, the man by the pillar won that single day (Morton, 50).
Once it was clear that Britain won the war, these bonds increased in value higher than the face value, which provided Rothschild with a 20:1 return on his investment. This coup gave the Rothschild family complete control of the British economy, now the financial center of the world, following Napoleon's defeat. Nathan Rothschild, now in essence controller of the new central Bank of England, said,
I care not what puppet is placed upon the throne of England to rule the Empire on which the sun never sets. The man who controls Britain's money supply controls the British Empire, and I control the British money supply.
After Napoleon's defeat the leaders of Europe were meeting in Congress at Aix-la-Chapelle. Important financial arrangements were going to be discussed. The most important piece of business was the floating of a second installment of a French loan, designed to help the new government pay off its war indemnity. The first French loan went to various investment banking houses: the Ouvards of Paris, then Hopes (the ancient Anglo-Dutch banking house) and Barings of London, while the Rothschilds were shunned. The established banking houses would not give them any piece of the action. But, unbeknownst to them, the Rothschilds started buying the same bonds these banks were floating. This boosted the price of the bonds which encouraged the above referenced banking houses about the demand for these bonds. By the end of the week, the market was on the verge of an unexpected crash. Little did they suspect that the Rothschilds, whom they had snubbed, had all their banks buy the bonds and then sell them all at once after they had given them a false high! The Rothschild's made their abilities very clear and were permitted entry into this privileged club of finance.
According to Derek Wilson, in 1830 there were uprisings in Poland, Belgium, and the northern Italian states of Parma, Modena, and Romagna. The Rothschilds worked to maintain peace and stability. Armed intervention meant money. Money meant applying to the "five brothers of Europe" who began to attach political strings to their loans. Salomon was quite open: "These gentlemen should not count on us unless they decide to follow a line of prudence and moderation...Our goodwill does not yet extent to the point of putting clubs into the hands that would beat us." When the Rothschild's would not finance the Belgian revolutionaries, they relied on their negotiation skills. When they got into power, James Rothschild said of the change, "Now is the moment to make ourselves absolute masters of that country's finances. The first step will be to establish ourselves on an intimate footing with Belgium's new Finance Minister, to gain his confidence...and to take all the treasury bonds he may offer us" (Wilson, p.100).
On the other hand if you offended the Rothschilds, as the Spanish government did, the five brothers taught them a lesson by buying 1,800,000 pounds to speculate in Spanish government stock and engineered a dramatic fall in its value (Wilson, 101).
One of the reasons for the acumen of the Rothschild's is that, when you have banks in five countries, you need to have access to the news before anyone else. Therefore, early on, a courier service was set up. The Rothschild's attributed their ability to have the scoop before any king or ruler to their carrier pigeons which flew as far as Rio de Janeiro. As their business evolved down through the centuries, the Rothschilds found ways to carry information to all parts of the world. However, during the 18th and 19th centuries, they relied on horse and ships. As a result of the business they did between themselves, this information service developed to the point of being considered one of the first intelligence services. The Rothschild coaches would careen down highways, carrying cash, securities, litters, and news. Their news service was considered the best in Europe which prompted other countries to use it. As is the case, "the mails were not only an instrument for carrying letters but also for inspecting them (Morton, 92). One wrote, "If the breeze didn't carry Rothschild pigeons, it pushed Rothschild sails. 'The English ministry,' wrote Talleyrand to Louis Philippe's sister, 'is always informed of everything by Rothschild ten to twelve hours before the dispatches of the British ambassador arrive. This is necessarily so because the vessels used by the Rothschild couriers belong to that house take no passengers and sail in all weathers'" (Wilson, 92).
The Rothschild's were very instrumental in setting up the first Bank of the United States and financing the War of 1812. While the British were successful in burning the White House, thanks to Andrew Jackson, and in burning other important buildings and vital documents, they were routed out of America in the War of 1812. As president, Andrew Jackson vetoed the charter for the Bank of the U.S. According to Niall Ferguson in his book, The House of Rothschild's - Money's Prophets,
No sooner had the Rothschild's appeared on the American scene then Governor McNutt of Massachusetts, was denouncing 'Baron R' for having 'the blood of Judas and Shylock flow[ing] in his veins, and ...unit[ing] the qualities of both his countrymen. The first and second central banks of the United States employed the Rothschild's as agents.
The Rothschild's did bullion brokering and refining, accepting and discounting commercial bills, direct trading in commodities, foreign exchange dealing and arbitrage, as well as, insurance. Recall that it was the British Rothschild's who financed Cecil Rhodes and DeBeers Diamonds, becoming the biggest shareholders. Rhodes purchased the two farms from the DeBeers brothers (they were Boers), where diamonds were found for 6,300 pounds.
In 1905, the largest diamond in the world, weighing 530.20 carats, the Cullinan Diamond, was found. It was cut into 9 large stones which include the Cullinan I at 530.20 carats, which is now part of the British royal scepter. (I remember the first time I saw it in 1978, I could not believe it was real and asked the guard. He looked at this naive American and said in a very dry tone, "Yes Mum.") The Cullinan II is 317.40 carats and is in the British Imperial State Crown. The Cullinan III weighs 94.40 carats and is in Queen Mary's Crown. Both the Cullinan IV at 63.60 carats and the Cullinan V at 18.80 carats are worn by Queen Elizabeth II as pieces of jewelry. Note that 5 of the 9 Cullinan stones belong to the British royal family. What would you give the Lord Rothschild in return for these baubles?
It was the Rothschild's who financed the railroad system of Europe and the Suez Canal for Britain. Prime Minister Disraeli formed a very close relationship with the Rothschilds, even becoming "uncle" to their children. At one point Disraeli, to avoid government hassle and "seize the moment" took it upon himself to ask the Rothschilds for a 4M pound loan to finance the Suez Canal for the Queen. Their terms were 5% with a 2 ½% commission. In a letter to the Queen, Disraeli wrote, "Four millions sterling! And almost immediately. There was only one firm that could do it -- Rothschilds....the Khedive [canal] is yours, Madam" (Wilson, 236). Disraeli was elevated to the House of Lords, as the Earl of Beaconsfield.
In 1870, the Rothschilds formed the world's second largest oil producer, the Caspian and Black Sea Petroleum Company. In 1910 Henry Ditterding (Royal Dutch Petroleum) and Marcus Samuel (Shell Transport and Trading Company) began acquiring Caucasian oilfields. In 1912, they approached De Rothschild Freres, who had his own oil fields in the Caspian and Black Seas. The new company became known as Royal Dutch Shell in 1912, and is the second largest oil company in the world.
There is much to be said about the Rothschilds' cunning and unscrupulous ways, yet they have become the bankers to all the crown heads of Europe: Britain's King George IV, French King Louis XVIII, the Duke of York, the Duke of Clarence, Prince Leopold of Saxe-Coburg, the Duke of Kent who married Victoria of Saxe-Coburg from whom Queen Victoria was birthed, numerous members of the most important families of the Austro-Hungarian aristocracy, including the Thurn und Taxis family. According to Ferguson, "When Europe was restored, the Rothschild's established a network of private financial relationships with key public figures. The image of the Rothschilds as the centre of a web of 'corruption' would become a recurrent one in the years after 1830. But it was not, in reality, the 'bribes, loans, and other favors they bestowed on men like Metternich which made them the dominant force in international finance after 1815, it was the sheer scale -- and sophistication -- of their operations" (Ferguson, 162).
I have not begun to scratch the surface, concerning the amazing feats this family has achieved. The various biographies that I have read contain descriptions of their mansions, assets, wineries, tamed zebras, patronage of the arts and music, power, and political and financial achievements. From very little means, they are considered almost royal. They have their own crest of arms, as a result of the titles bestowed upon them by numerous royal families, and they are socially connected to all of the world's royal and non-royal elite. A number of Rothschilds were instrumental in populating Palestine back in the late 1890s, were involved with the first Zionist Congress in Basel in 1893, and with the founding of the State of Israel, as well as financing it. Edmond de Rothschild worked closely with Lord Balfour and Lloyd George in getting the Balfour Declaration to create the State of Israel.
The Rothschilds financed Britain's Anglo-Boer War for control of the vast diamond mines on Boer property. For that, Nathaniel Rothschild in 1885 was given the title of Lord Rothschild. He became the first Jewish peer in England. A. N. Knuth says this about their vast wealth,
The Annual Encyclopedia of 1868 records that Jacob (Paris House of Rothschild) had been established in Paris in 1812 with a capital of $200,000 by Mayer Amschel, and at that time of his death in 1868, 56 years later, his fortune was estimated at over $300M and his yearly income at $40M. In comparison it may be significant to note that there was at this time no fortune in all America that equaled only one year's income of Jacob (Baron James de Rothschild (70).
In short, the Rothschild's created modern banking, international banking, global bonds, and every other type of finance available. Today, they are busy "privatizing" the assets of the world and taking control of toll roads, water companies, electric companies, space, infrastructure, etc. It is the central banking system that controls the monetary system of the world, as well as, the investors in the central banks, including royalty such as the King and Queen of England and other international bankers, of which the Schiffs, Morgan's, Lazard Freres, and Rothschild's are part.
In 1852, Nathan began reining gold and silver for the Royal Mint and the Bank of England. Today, at the Bank of England, the Rothschild's fix the world's daily price of gold. Lastly, CitiGroup is a financial conglomerate, as well as, an international bank. It was instrumental in getting the Congress to repeal the Glass-Steagall Act, a 1933 law that put "firewalls" between banking and brokerage activities to avoid another 1929 crash. CitiGroup was instrumental in helping to facilitate the crash of the NASDAQ. The reason why your brokers do not know anything about gold (i.e. the only protection against a fiat paper money system) is that they work for brokerage companies that are either controlled by the Rothschilds or by others like the Rothschilds. Like most everyone else brokers do not know, or even care, as long as they have jobs.
Former Federal Reserve Chairman, Paul Volcker went to work for the Rothschild's, as chairman of the European investment banking firm, J. Rothschild, Wolfensohn and Co. from 1992 until 1995. It should be noted that the former World Bank President James A. Wolfensohn, sold his company to Kissinger and Co. when he became president of the World Bank in 1995.
San Jose Mercury reported in January 12, 1992 that the longtime chief executive of BankCal invited Edmond Rothschild to purchase the bank as a minority shareholder. Through manipulation, he carried out a series of actions, which dropped the value of BankCal's stock drastically. Meanwhile financial advisors and securities analysts convinced small stockholders to sell their BankCal stock at rock bottom prices for as little as $16 a share. Rothschild bought some at that price but had others buy for him at bottom prices, so that he had a majority of stock. He then sold the majority of shares to the Japanese and made a killing. Richard Freemon, a large stockholder, who had sold, sued Rothschild and the directors for cheating him on his stock. The $25M law suit was settled out of court. This has been their method of operation. Are the Rothschilds only ones? No, but they appear to be the chief power.
The reason for discussing the Rothschilds is that, apart from the Queen, I believe they control -- or have more control than the other powerful families on Planet Earth--the entire monetary system of the world. While there is some natural supply and demand in the market, I think we need to understand that most of the market changes are orchestrated to take from us--and transfer it to the international bankers. Rarely is there mention of them or do you see a photograph of them and their endeavors--that is because they own many newspapers.
A number of years ago, the DeBeers Diamond cartel came under the control of the Oppenheimers who also control Rhodes gold-mining company, the Anglo-American Corporation. Interestingly enough, it was the first Rothschild, Amschel Mayer Bauer, who went to work for the Oppenheimers in Frankfurt after his father died. Perhaps an old debt is being repaid.
Today the Rothschild's are worldwide, involved in investment banking, debt-related financing, restructuring, privatization, equity capital markets, oil and gas, mining, mergers and acquisitions, and private placements. Some of the deals include convertible preferred stock for the Chicago Climate Exchange; restructuring for France Telecom, Rio Tinto, Euro Disney, and Vivendi; debt advisory to Royal Ahold, Texas Pacific Group, and South African Airways; and privatization for Beijing Capital International Airport, the Government of Peru, the Government of Chile, the Government of Denmark, Air Portugal, and the Philippines National Transmission Company. Oil and Gas include acquisitions in Royal Dutch Petroleum, Petrochemical and gas stations by Sinopec, and Xstrata. Regarding mergers and acquisitions, out of the top investment banks by country Rothschilds rank #4 in France, #1 in the UK, #4 in Germany, #1 in Italy, #7 in Australia, #2 in Latin America and #9 in Spain. The Rothschilds have banks all over the world, providing a seamless connection worldwide. They operate three different banks in the UK, besides Frankfurt, Zurich, Moscow, and North America, as well as, banks in Brazil, Mexico, Australia, Asia, and South Africa.
IN CONCLUSION
In short, this newsletter is about power to control and power to determine value. This letter by no means exhausts the topic. It would take a sizeable book to discuss other powerful families, like the Rockefellers, the Schiffs, the Morgans, the DuPonts, the Astors, the Li's from China, and the British royal family, in addition to the Carnegies, Mellon's, and Vanderbilts.
In light of the rapid drop in the price of gold and oil, and to answer the question posed earlier of "Who controls value?" we see one name: Rothschild. When we want to discuss the value of gold -- it is set by the Rothschilds on a daily basis. When we want to discuss the value of oil -- they own one of the largest oil companies in the world. And, when we want to discuss interest rates, they are one of the controlling families that own the Federal Reserve Bank, with equally great power over the Bank of England.
We have just seen a major shift--or reversal--in two major trends that have been dominant since 2000: gold and oil. Is this temporary? At every turn we hear of more wars. There are those who say Bush is preparing for an October strike against Iran. If that is the case, the drop in oil and gold was an excuse to skim off the top of the world's assets (yours and mine). It appears that we are in a time of perpetual war for war is a transfer of wealth and an opportunity to finance both sides. There is nothing in this world that is not affected by the supreme power of a few major families worldwide. Furthermore, most of the major political players today are members of one of Rhode's secret societies: the Council on Foreign Relations, the Royal Institute for International Affairs, and the Pilgrims Society.
In conclusion, we get to participate in the "crumbs from the master's table." To quote King Solomon, the richest man in the world, "The thing that has been, it is that which shall be and that which is done is that which shall be done: and there is no new thing under the sun" (Eccl. 1:9).
Ferguson, Niall. The House of Rothschild Money's Prophets 1798-1848 (New York, 1998).Knuth, E.C. The Empire of the City (Milwaukee, 1946).Mayer, Martin. The Bankers (New York, 1974).Morton, Frederic. The Rothschilds (Greenwich, 1961).Quigley, Carroll. Tragedy and Hope (New York, 1966).Quigley, Carroll. The Anglo-American Establishment (New York, 1981).Rotberg, Robert I. THE FOUNDER Cecil Rhodes and the Pursuit of Power (New York, 1988).Walbert, M.N. The Coming Battle (1899, republished 1977).Wilson, Derek. Rothschild A Story of Wealth and Power (London, 1988).
By Joan M. Veon, CFP®Veon Financial Services, Inc.301/371-0540
Copyright © 2006 Joan Veon
In describing the activities of the Rothschild family, author Fritz Springmeier wrote, "They have indebted kings, manipulated kingdoms, created wars, and molded the very shape of the international world." This powerful banking firm had humble beginnings. The man responsible for this global banking empire was born in the ghetto in Frankfurt-am-Main in 1743, and the son of a money lender. Mayer Amschel Bauer, who eventually took the name Rothschild (which means "red shield"), had five sons and five daughters.
After his father died, he was sent to the firm of Wolf Jakob Oppenheim[er], where he learned the coin business. In 1764, he became a dealer in rare coins and metals. Mayer Amschel envisioned a very closely connected family banking empire on five continents with each son in a different country. While he started the vision and set down very strict rules for his sons, it was the brilliance and cunning of his 3rd son, Nathan, who started NM Rothschild & Sons in England that paved the way for the firm to become the first, truly, international banking cartel.
Mayer Amschel's first coin transaction was with William, Hereditary Prince of Hesse-Kassel. By the end of the 17th century, he had established himself as Frankfurt's leading dealer, not only in coins and metals, but also in all kinds of antiques. By 1797, he was one of the richest Jews in Frankfurt and his business had moved into banking. According to English historian, E. C. Knuth,
It was Nathan, founder of the British house which plays so important a role in the affairs of the City (the financial and legal part of the City of London which is in itself a private corporation and known by the same name as the larger City of London) and consequently in the affairs of all the world. Professor Usher stated in his Pan-Germanism of 1913: "Russia, Turkey, Egypt, India, China, Japan and South America are probably owned, as far as any nation can be owned in London or Paris. The world itself, in fact, pays them tribute; it actually rises in the morning to earn its living by utilizing their capital, and occupies its days in making the money to pay them interest, which is to make them still wealthier" (Knuth, p.69).
Furthermore, it was the goal of poverty-stricken Mayer Amschel to have titles of nobility. However, because they were Jewish, they were shunned and restricted from society. This went back to the first king who booted the Jews out of his kingdom because they lent at usury, something that was not done in the Christian religion. However, as lending at interest became more widespread, especially because of the rise of central banks, their integration into society became accepted.
Amschel's benefactor, Prince William of Hesse-Kassel, made his money by selling mercenaries to the rulers of Europe, so they could wage war to enlarge their kingdoms. William's cousin, King George III was one of William's largest customers, helping him with his was against the Colonies. William was pure royalty. His grandfather was George II of England. He was a nephew of the King of Denmark and a brother-in-law to the King of Sweden. The income from selling mercenaries made William the richest ruler in Europe. From a very clever business standpoint, Mayer Amschel determined he was going to be his banker and gain his business. He did so by selling him rare coins at rock bottom prices. It worked and soon he was selling to other members of royalty.
According to Frederick Morton, Mayer was at the right place at the right time. Since the entire treasury of Denmark consisted of a deficit, and William had a huge surplus, the question was how to help his uncle, the king of Denmark? William could not do it, directly, because of delicate family ties. So he used his kingdom of Denmark as collateral to cut a deal, incognito, with an obscure bank, like the Rothchilds' (Morton, 36).
However, it was Napoleon who really enriched Mayer Amshel Bauer who by that time had changed his name to Rothschild. Napoleon was determined to rid Europe of Prince William and so, as the prince fled Napoleon, he entrusted Rothschild with $3M. His son, Nathan, who established banking interests in England, invested this money in "gold from the East India Company, knowing that it would be needed for Wellington's peninsula campaign." On the temporarily stolen money, N. Rothschild made four profits before he returned it to the Prince with interest: (1) on the sale of Wellington's bonds which he bought at 50 cents on the dollar and collected at par, (2) on the sale of gold to Wellington, (3) on its repurchase, and (4) then selling it to Portugal.
Furthermore, the Rothschilds funded both sides of the Napoleonic War with their various banks across Europe. Because of their unrivalled network of secret routes and fast couriers, including, pigeons, it was their intelligence system that allowed Nathan in England to provide Napoleon with important information on how the war with Wellington was going.
Nathan had a particular place (a favorite column) at the London Stock Exchange from which he would conduct business. From that position he could direct his traders, while non-affiliated traders could see if he was buying or selling, which usually set the trend for the day. After he learned that Wellington had won the war with Napoleon, Nathan stood at his post and without any expression on his face began to direct his traders to sell. This went on for most of the day. The non-affiliated traders determined that Wellington had lost, and they started to sell. Then, right before the market closed, when prices had hit rock bottom, Rothschild directed his agents to purchase all the bonds for pennies on the dollar. He had known more than they did. Biographer Frederick Morton wrote this about Nathan,
We cannot guess the number of hopes and savings wiped out by this engineered panic. We cannot estimate how many liveried servants, how many Watteaus and Rembrandts, how many thoroughbreds in his descendants' stables, the man by the pillar won that single day (Morton, 50).
Once it was clear that Britain won the war, these bonds increased in value higher than the face value, which provided Rothschild with a 20:1 return on his investment. This coup gave the Rothschild family complete control of the British economy, now the financial center of the world, following Napoleon's defeat. Nathan Rothschild, now in essence controller of the new central Bank of England, said,
I care not what puppet is placed upon the throne of England to rule the Empire on which the sun never sets. The man who controls Britain's money supply controls the British Empire, and I control the British money supply.
After Napoleon's defeat the leaders of Europe were meeting in Congress at Aix-la-Chapelle. Important financial arrangements were going to be discussed. The most important piece of business was the floating of a second installment of a French loan, designed to help the new government pay off its war indemnity. The first French loan went to various investment banking houses: the Ouvards of Paris, then Hopes (the ancient Anglo-Dutch banking house) and Barings of London, while the Rothschilds were shunned. The established banking houses would not give them any piece of the action. But, unbeknownst to them, the Rothschilds started buying the same bonds these banks were floating. This boosted the price of the bonds which encouraged the above referenced banking houses about the demand for these bonds. By the end of the week, the market was on the verge of an unexpected crash. Little did they suspect that the Rothschilds, whom they had snubbed, had all their banks buy the bonds and then sell them all at once after they had given them a false high! The Rothschild's made their abilities very clear and were permitted entry into this privileged club of finance.
According to Derek Wilson, in 1830 there were uprisings in Poland, Belgium, and the northern Italian states of Parma, Modena, and Romagna. The Rothschilds worked to maintain peace and stability. Armed intervention meant money. Money meant applying to the "five brothers of Europe" who began to attach political strings to their loans. Salomon was quite open: "These gentlemen should not count on us unless they decide to follow a line of prudence and moderation...Our goodwill does not yet extent to the point of putting clubs into the hands that would beat us." When the Rothschild's would not finance the Belgian revolutionaries, they relied on their negotiation skills. When they got into power, James Rothschild said of the change, "Now is the moment to make ourselves absolute masters of that country's finances. The first step will be to establish ourselves on an intimate footing with Belgium's new Finance Minister, to gain his confidence...and to take all the treasury bonds he may offer us" (Wilson, p.100).
On the other hand if you offended the Rothschilds, as the Spanish government did, the five brothers taught them a lesson by buying 1,800,000 pounds to speculate in Spanish government stock and engineered a dramatic fall in its value (Wilson, 101).
One of the reasons for the acumen of the Rothschild's is that, when you have banks in five countries, you need to have access to the news before anyone else. Therefore, early on, a courier service was set up. The Rothschild's attributed their ability to have the scoop before any king or ruler to their carrier pigeons which flew as far as Rio de Janeiro. As their business evolved down through the centuries, the Rothschilds found ways to carry information to all parts of the world. However, during the 18th and 19th centuries, they relied on horse and ships. As a result of the business they did between themselves, this information service developed to the point of being considered one of the first intelligence services. The Rothschild coaches would careen down highways, carrying cash, securities, litters, and news. Their news service was considered the best in Europe which prompted other countries to use it. As is the case, "the mails were not only an instrument for carrying letters but also for inspecting them (Morton, 92). One wrote, "If the breeze didn't carry Rothschild pigeons, it pushed Rothschild sails. 'The English ministry,' wrote Talleyrand to Louis Philippe's sister, 'is always informed of everything by Rothschild ten to twelve hours before the dispatches of the British ambassador arrive. This is necessarily so because the vessels used by the Rothschild couriers belong to that house take no passengers and sail in all weathers'" (Wilson, 92).
The Rothschild's were very instrumental in setting up the first Bank of the United States and financing the War of 1812. While the British were successful in burning the White House, thanks to Andrew Jackson, and in burning other important buildings and vital documents, they were routed out of America in the War of 1812. As president, Andrew Jackson vetoed the charter for the Bank of the U.S. According to Niall Ferguson in his book, The House of Rothschild's - Money's Prophets,
No sooner had the Rothschild's appeared on the American scene then Governor McNutt of Massachusetts, was denouncing 'Baron R' for having 'the blood of Judas and Shylock flow[ing] in his veins, and ...unit[ing] the qualities of both his countrymen. The first and second central banks of the United States employed the Rothschild's as agents.
The Rothschild's did bullion brokering and refining, accepting and discounting commercial bills, direct trading in commodities, foreign exchange dealing and arbitrage, as well as, insurance. Recall that it was the British Rothschild's who financed Cecil Rhodes and DeBeers Diamonds, becoming the biggest shareholders. Rhodes purchased the two farms from the DeBeers brothers (they were Boers), where diamonds were found for 6,300 pounds.
In 1905, the largest diamond in the world, weighing 530.20 carats, the Cullinan Diamond, was found. It was cut into 9 large stones which include the Cullinan I at 530.20 carats, which is now part of the British royal scepter. (I remember the first time I saw it in 1978, I could not believe it was real and asked the guard. He looked at this naive American and said in a very dry tone, "Yes Mum.") The Cullinan II is 317.40 carats and is in the British Imperial State Crown. The Cullinan III weighs 94.40 carats and is in Queen Mary's Crown. Both the Cullinan IV at 63.60 carats and the Cullinan V at 18.80 carats are worn by Queen Elizabeth II as pieces of jewelry. Note that 5 of the 9 Cullinan stones belong to the British royal family. What would you give the Lord Rothschild in return for these baubles?
It was the Rothschild's who financed the railroad system of Europe and the Suez Canal for Britain. Prime Minister Disraeli formed a very close relationship with the Rothschilds, even becoming "uncle" to their children. At one point Disraeli, to avoid government hassle and "seize the moment" took it upon himself to ask the Rothschilds for a 4M pound loan to finance the Suez Canal for the Queen. Their terms were 5% with a 2 ½% commission. In a letter to the Queen, Disraeli wrote, "Four millions sterling! And almost immediately. There was only one firm that could do it -- Rothschilds....the Khedive [canal] is yours, Madam" (Wilson, 236). Disraeli was elevated to the House of Lords, as the Earl of Beaconsfield.
In 1870, the Rothschilds formed the world's second largest oil producer, the Caspian and Black Sea Petroleum Company. In 1910 Henry Ditterding (Royal Dutch Petroleum) and Marcus Samuel (Shell Transport and Trading Company) began acquiring Caucasian oilfields. In 1912, they approached De Rothschild Freres, who had his own oil fields in the Caspian and Black Seas. The new company became known as Royal Dutch Shell in 1912, and is the second largest oil company in the world.
There is much to be said about the Rothschilds' cunning and unscrupulous ways, yet they have become the bankers to all the crown heads of Europe: Britain's King George IV, French King Louis XVIII, the Duke of York, the Duke of Clarence, Prince Leopold of Saxe-Coburg, the Duke of Kent who married Victoria of Saxe-Coburg from whom Queen Victoria was birthed, numerous members of the most important families of the Austro-Hungarian aristocracy, including the Thurn und Taxis family. According to Ferguson, "When Europe was restored, the Rothschild's established a network of private financial relationships with key public figures. The image of the Rothschilds as the centre of a web of 'corruption' would become a recurrent one in the years after 1830. But it was not, in reality, the 'bribes, loans, and other favors they bestowed on men like Metternich which made them the dominant force in international finance after 1815, it was the sheer scale -- and sophistication -- of their operations" (Ferguson, 162).
I have not begun to scratch the surface, concerning the amazing feats this family has achieved. The various biographies that I have read contain descriptions of their mansions, assets, wineries, tamed zebras, patronage of the arts and music, power, and political and financial achievements. From very little means, they are considered almost royal. They have their own crest of arms, as a result of the titles bestowed upon them by numerous royal families, and they are socially connected to all of the world's royal and non-royal elite. A number of Rothschilds were instrumental in populating Palestine back in the late 1890s, were involved with the first Zionist Congress in Basel in 1893, and with the founding of the State of Israel, as well as financing it. Edmond de Rothschild worked closely with Lord Balfour and Lloyd George in getting the Balfour Declaration to create the State of Israel.
The Rothschilds financed Britain's Anglo-Boer War for control of the vast diamond mines on Boer property. For that, Nathaniel Rothschild in 1885 was given the title of Lord Rothschild. He became the first Jewish peer in England. A. N. Knuth says this about their vast wealth,
The Annual Encyclopedia of 1868 records that Jacob (Paris House of Rothschild) had been established in Paris in 1812 with a capital of $200,000 by Mayer Amschel, and at that time of his death in 1868, 56 years later, his fortune was estimated at over $300M and his yearly income at $40M. In comparison it may be significant to note that there was at this time no fortune in all America that equaled only one year's income of Jacob (Baron James de Rothschild (70).
In short, the Rothschild's created modern banking, international banking, global bonds, and every other type of finance available. Today, they are busy "privatizing" the assets of the world and taking control of toll roads, water companies, electric companies, space, infrastructure, etc. It is the central banking system that controls the monetary system of the world, as well as, the investors in the central banks, including royalty such as the King and Queen of England and other international bankers, of which the Schiffs, Morgan's, Lazard Freres, and Rothschild's are part.
In 1852, Nathan began reining gold and silver for the Royal Mint and the Bank of England. Today, at the Bank of England, the Rothschild's fix the world's daily price of gold. Lastly, CitiGroup is a financial conglomerate, as well as, an international bank. It was instrumental in getting the Congress to repeal the Glass-Steagall Act, a 1933 law that put "firewalls" between banking and brokerage activities to avoid another 1929 crash. CitiGroup was instrumental in helping to facilitate the crash of the NASDAQ. The reason why your brokers do not know anything about gold (i.e. the only protection against a fiat paper money system) is that they work for brokerage companies that are either controlled by the Rothschilds or by others like the Rothschilds. Like most everyone else brokers do not know, or even care, as long as they have jobs.
Former Federal Reserve Chairman, Paul Volcker went to work for the Rothschild's, as chairman of the European investment banking firm, J. Rothschild, Wolfensohn and Co. from 1992 until 1995. It should be noted that the former World Bank President James A. Wolfensohn, sold his company to Kissinger and Co. when he became president of the World Bank in 1995.
San Jose Mercury reported in January 12, 1992 that the longtime chief executive of BankCal invited Edmond Rothschild to purchase the bank as a minority shareholder. Through manipulation, he carried out a series of actions, which dropped the value of BankCal's stock drastically. Meanwhile financial advisors and securities analysts convinced small stockholders to sell their BankCal stock at rock bottom prices for as little as $16 a share. Rothschild bought some at that price but had others buy for him at bottom prices, so that he had a majority of stock. He then sold the majority of shares to the Japanese and made a killing. Richard Freemon, a large stockholder, who had sold, sued Rothschild and the directors for cheating him on his stock. The $25M law suit was settled out of court. This has been their method of operation. Are the Rothschilds only ones? No, but they appear to be the chief power.
The reason for discussing the Rothschilds is that, apart from the Queen, I believe they control -- or have more control than the other powerful families on Planet Earth--the entire monetary system of the world. While there is some natural supply and demand in the market, I think we need to understand that most of the market changes are orchestrated to take from us--and transfer it to the international bankers. Rarely is there mention of them or do you see a photograph of them and their endeavors--that is because they own many newspapers.
A number of years ago, the DeBeers Diamond cartel came under the control of the Oppenheimers who also control Rhodes gold-mining company, the Anglo-American Corporation. Interestingly enough, it was the first Rothschild, Amschel Mayer Bauer, who went to work for the Oppenheimers in Frankfurt after his father died. Perhaps an old debt is being repaid.
Today the Rothschild's are worldwide, involved in investment banking, debt-related financing, restructuring, privatization, equity capital markets, oil and gas, mining, mergers and acquisitions, and private placements. Some of the deals include convertible preferred stock for the Chicago Climate Exchange; restructuring for France Telecom, Rio Tinto, Euro Disney, and Vivendi; debt advisory to Royal Ahold, Texas Pacific Group, and South African Airways; and privatization for Beijing Capital International Airport, the Government of Peru, the Government of Chile, the Government of Denmark, Air Portugal, and the Philippines National Transmission Company. Oil and Gas include acquisitions in Royal Dutch Petroleum, Petrochemical and gas stations by Sinopec, and Xstrata. Regarding mergers and acquisitions, out of the top investment banks by country Rothschilds rank #4 in France, #1 in the UK, #4 in Germany, #1 in Italy, #7 in Australia, #2 in Latin America and #9 in Spain. The Rothschilds have banks all over the world, providing a seamless connection worldwide. They operate three different banks in the UK, besides Frankfurt, Zurich, Moscow, and North America, as well as, banks in Brazil, Mexico, Australia, Asia, and South Africa.
IN CONCLUSION
In short, this newsletter is about power to control and power to determine value. This letter by no means exhausts the topic. It would take a sizeable book to discuss other powerful families, like the Rockefellers, the Schiffs, the Morgans, the DuPonts, the Astors, the Li's from China, and the British royal family, in addition to the Carnegies, Mellon's, and Vanderbilts.
In light of the rapid drop in the price of gold and oil, and to answer the question posed earlier of "Who controls value?" we see one name: Rothschild. When we want to discuss the value of gold -- it is set by the Rothschilds on a daily basis. When we want to discuss the value of oil -- they own one of the largest oil companies in the world. And, when we want to discuss interest rates, they are one of the controlling families that own the Federal Reserve Bank, with equally great power over the Bank of England.
We have just seen a major shift--or reversal--in two major trends that have been dominant since 2000: gold and oil. Is this temporary? At every turn we hear of more wars. There are those who say Bush is preparing for an October strike against Iran. If that is the case, the drop in oil and gold was an excuse to skim off the top of the world's assets (yours and mine). It appears that we are in a time of perpetual war for war is a transfer of wealth and an opportunity to finance both sides. There is nothing in this world that is not affected by the supreme power of a few major families worldwide. Furthermore, most of the major political players today are members of one of Rhode's secret societies: the Council on Foreign Relations, the Royal Institute for International Affairs, and the Pilgrims Society.
In conclusion, we get to participate in the "crumbs from the master's table." To quote King Solomon, the richest man in the world, "The thing that has been, it is that which shall be and that which is done is that which shall be done: and there is no new thing under the sun" (Eccl. 1:9).
Ferguson, Niall. The House of Rothschild Money's Prophets 1798-1848 (New York, 1998).Knuth, E.C. The Empire of the City (Milwaukee, 1946).Mayer, Martin. The Bankers (New York, 1974).Morton, Frederic. The Rothschilds (Greenwich, 1961).Quigley, Carroll. Tragedy and Hope (New York, 1966).Quigley, Carroll. The Anglo-American Establishment (New York, 1981).Rotberg, Robert I. THE FOUNDER Cecil Rhodes and the Pursuit of Power (New York, 1988).Walbert, M.N. The Coming Battle (1899, republished 1977).Wilson, Derek. Rothschild A Story of Wealth and Power (London, 1988).
By Joan M. Veon, CFP®Veon Financial Services, Inc.301/371-0540
Copyright © 2006 Joan Veon
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