July 29, 2012

The Rothschilds: the First Barons of Banking

In early July 2008, Baron Rothschild said that his family's business would be involved in bankruptcy restructurings in the U.S., a franchise they predicted would see a lot more activity in the months ahead. Rothschild believes that there is a New World Order. In his opinion, banks will deleverage and there will be a new form of global governance. The Rothschilds have worked for centuries: quietly, without fuss, behind the scenes. "We have had 250 years or so of family involvement in the finance business," says Rothschild. "We provide advice on both sides of the balance sheet, and we do it globally." By the 19th century, they ran a financial institution with the power and influence of a combined Merrill Lynch, JP Morgan, Morgan Stanley and perhaps even Goldman Sachs and the Bank of China today. The Rothschilds have been helping the British government -- and many others -- out of a financial hole ever since they financed Wellington’s army and thus victory against the French at Waterloo in 1815. In the 1820s, the Rothschilds supplied enough money to the Bank of England to avert a liquidity crisis. There is not one institution that can save the system in the same way today; not even the U.S. Federal Reserve. So how did the Rothschilds manage to emerge relatively unscathed from the financial meltdown? "You could say that we may have more insights than others, or you may look at the structure of our business," he says. "As a family business, we want to limit risk. There is a natural pride in being a trusted adviser."



Rockefeller-owned Exxon had a net income of $11 billion in the first quarter of 2011. During the same quarter, Shell's profit rose 60 percent to about $9 billion. France's Total SA made about $5.8 billion, up 50 percent. ConocoPhillips' earnings rose 43 percent. Chevron's net income rose 36 percent to $6.21 billion.

Every penny increase at the pump takes $4 million per day from the American consumer. So a 10-cent increase is $40 million a day (or $14.6 billion per year). [A $10 increase in the price of a barrel of oil translates into roughly a 25 cent increase in retail gasoline prices.]

The Federal Reserve Board, a group of private bankers (including the Rothschild and Rockefeller families) prints money out of thin air and loans it at interest to the U.S. government. In June 2012 alone, U.S. taxpayers paid $104 billion in interest to this tiny group of elite bankers.

The Netaid organization says that with just $13 billion a year the basic health and food needs of the world's poorest people could be met. [Source]

The investment banks (Morgan Stanley, JP Morgan, Goldman Sachs, etc.) used to lend money to Merchants Producers End Users and Speculators (companies/individuals that use the resources to make products using commodities), which allowed supply and demand to work. But in 2000 Congress passed laws that allowed the investment banks to trade commodities for themselves, so they bought warehouse storage tanks, leased ships themselves, etc. [the law, also known as the 'Enron loophole', also opened the door to unregulated trading of credit default swaps, the financial instruments blamed, in part, for the current economic meltdown]. The Federal Reserve, which is owned by a group of private bankers, gave them unlimited funds with which they now control the markets. The people are getting screwed by this arrangement and it must end. The Glass Steagall Act must be brought back along with contract limits on positions, and the Volker Rule must be enforced or THE BANKSTERS will rob us all. The banksters need JAIL TIME NOW. [William H., Oil Speculation Imposes “the Most Insidious Tax” on Americans]

Since passage of The Commodity Futures Modernization Act (which was approved in December 2000, just before Bill Clinton’s term as president ended—beware of Santa's secret legislation), financial speculators now account for more than 60% of some agricultural futures and options markets, compared to just 12% 15 years ago. Runaway inflation on food and gas prices will be a reality in the future (the Bible tells us this will be the case near the end). Financial speculators have flooded food commodity markets, creating massive inflation and sudden price spikes. In the past five years, the total assets of financial speculators in these markets have nearly doubled, from $65 billion in 2006 to $126 billion in 2011. [Source]

Eliminate the Fed (and the oil barons and Wall Street) and repeal the 'Commodity Future Modernization Act of 2000'. The fix is that simple. But the power seekers, the tiny elite who run the world, want the money and power for themselves; and our politicians and bureaucrats have sold us out to the power seekers for their own self preservation.



Flashback: Baron David de Rothschild Sees a New World Order in 'Global Banking Governance'

Originally published on July 11, 2008, before the global financial crisis came to the forefront of the business world and world media in September 2008.
UAE National - Among the captains of industry, spin doctors and financial advisers accompanying British prime minister Gordon Brown on his fund-raising visit to the Gulf this week, one name was surprisingly absent. This may have had something to do with the fact that the tour kicked off in Saudi Arabia. But by the time the group reached Qatar, Baron David de Rothschild was there, too, and he was also in Dubai and Abu Dhabi.

Although his office denies that he was part of the official party, it is probably no coincidence that he happened to be in the same part of the world at the right time. That is how the Rothschilds have worked for centuries: quietly, without fuss, behind the scenes.
"We have had 250 years or so of family involvement in the finance business," says Baron Rothschild. "We provide advice on both sides of the balance sheet, and we do it globally."
The Rothschilds have been helping the British government -- and many others -- out of a financial hole ever since they financed Wellington’s army and thus victory against the French at Waterloo in 1815.

According to a long-standing legend, the Rothschild family owed the first millions of their fortune to Nathan Rothschild’s successful speculation about the effect of the outcome of the battle on the price of British bonds. By the 19th century, they ran a financial institution with the power and influence of a combined Merrill Lynch, JP Morgan, Morgan Stanley and perhaps even Goldman Sachs and the Bank of China today. In the 1820s, the Rothschilds supplied enough money to the Bank of England to avert a liquidity crisis.

There is not one institution that can save the system in the same way today; not even the U.S. Federal Reserve. However, even though the Rothschilds may have lost some of that power -- just as other financial institutions on that list have been emasculated in the last few months -- the Rothschild dynasty has lost none of its lustre or influence.

So it was no surprise to meet Baron Rothschild at the Dubai International Financial Centre. Rothschild’s opened in Dubai in 2006 with ambitious plans to build an advisory business to complement its European operations. What took so long? The answer, as many things connected with Rothschilds, has a lot to do with history. When Baron Rothschild began his career, he joined his father’s firm in Paris. In 1982 President Francois Mitterrand nationalised all the banks, leaving him without a bank. With just $1 million in capital, and five employees, he built up the business, before merging the French operations with the rest of the family’s business in the 1990s.

Gradually the firm has started expanding throughout the world, including the Gulf.
"There is no debate that Rothschild is a Jewish family, but we are proud to be in this region. However, it takes time to develop a global footprint," he says.
An urbane man in his mid-60s, he says there is no single reason why the Rothschilds have been able to keep their financial business together, but offers a couple of suggestions for their longevity.
"For a family business to survive, every generation needs a leader," he says. "Then somebody has to keep the peace. Building a global firm before globalisation meant a mindset of sharing risk and responsibility. If you look at the DNA of our family, that is perhaps an element that runs through our history. Finally, don’t be complacent about giving the family jobs."
He stresses that the Rothschild ascent has not been linear -- at times, as he did in Paris, they have had to rebuild. While he was restarting their business in France, his cousin Sir Evelyn was building a British franchise. When Sir Evelyn retired, the decision was taken to merge the businesses. They are now strong in Europe, Asia especially China, India, as well as Brazil. They also get involved in bankruptcy restructurings in the U.S., a franchise that will no doubt see a lot more activity in the months ahead.

Does he expect governments to play a larger role in financial markets in future?
"There is a huge difference in the Soviet-style mentality that occurred in Paris in 1982, and the extraordinary achievements that politicians, led by Gordon Brown and Nicolas Sarkozy, have made to save the global banking system from systemic collapse," he says. "They moved to protect the world from billions of unemployment. In five to 10 years those banking stakes will be sold -- and sold at a profit."
Baron Rothschild shares most people’s view that there is a New World Order. In his opinion, banks will deleverage and there will be a new form of global governance.
"But you have to be careful of caricatures: we don’t want to go from ultra liberalism to protectionism."
So how did the Rothschilds manage to emerge relatively unscathed from the financial meltdown?
"You could say that we may have more insights than others, or you may look at the structure of our business," he says. "As a family business, we want to limit risk. There is a natural pride in being a trusted adviser."
It is that role as trusted adviser to both governments and companies that Rothschilds is hoping to build on in the region.
"In today’s world we have a strong offering of debt and equity," he says. "They are two arms of the same body looking for money."
The firm has entrusted the growth of its financing advisory business in the Middle East to Paul Reynolds, a veteran of many complex corporate finance deals.
"Our principal business franchise is large and mid-size companies," says Mr Reynolds. "I have already been working in this region for two years and we offer a pretty unique proposition. We work in a purely advisory capacity. We don’t lend or underwrite, because that creates conflicts. We are sensitive to banking relationships. But we look to ensure financial flexibility for our clients."
He was unwilling to discuss specific deals or clients, but says that he offers them "trusted, impartial financing advice any time day or night." Baron Rothschilds tends to do more deals than their competitors, mainly because they are prepared to take on smaller mandates.
"It’s not transactions were are interested in, it’s relationships. We are looking for good businesses and good people," says Mr Reynolds. "Our ambition is for every company here to have a debt adviser."
Baron Rothschild is reluctant to comment on his nephew Nat Rothschild’s public outburst against George Osborne, the British shadow Chancellor of the Exchequer. Nat Rothschild castigated Mr Osborne for revealing certain confidences gleaned during a holiday in the summer in Corfu.

In what the British press are calling "Yachtgate," the tale involved Russia’s richest man, Oleg Deripaska, Lord Mandelson, a controversial British politician who has just returned to government, Mr Osborne and a Rothschild. Classic tabloid fodder, but one senses that Baron Rothschild frowns on such publicity.
"If you are an adviser, that imposes a certain style and culture," he says. "You should never forget that clients want to hear more about themselves than their bankers. It demands an element of being sober."
Even when not at work, Baron Rothschild’s tastes are sober. He lives between Paris and London, is a keen family man -- he has one son who is joining the business next September and three daughters -- an enthusiastic golfer, and enjoys the "odd concert." He is also involved in various charity activities, including funding research into brain disease and bone marrow disorders.

It is part of Rothschild lore that its founder sent his sons throughout Europe to set up their own interlinked offices. So where would Baron Rothschild send his children today?
"I would send one to Asia, one to Europe and one to the United States," he said. "And if I had more children, I would send one to the UAE."

The Start of the Global Financial Crisis (2008)

Timeline of Events in September 2008 Causing the Global Recession

Originally Published on January 4, 2009

Suited101.com - The global financial crisis came to the forefront of the business world and world media in September 2008, with the failure and merging of a number of American financial companies. It was not a surprise -- many business journals had been commenting on the stability of the leading American and European financial firms following the Sub-Prime Mortgage Crisis. Much of the American economy is built on credit with firms borrowing money from other firms and the general consumer borrowing money for homes and cars. Many people were taking advantage of the housing boom in the US when it ended, leaving both investors and mortgage companies in trouble.

Timeline of Events Leading to the Global Financial Crisis

On 7 September 2008, it was announced that two firms, Fannie Mae and Freddie Mac, would be nationalised to try to ensure the financial stability of the two firms.

One week later, on the 14th September 2008, it came to light that the financial services firm, Lehman Brothers, would file for bankruptcy after being denied support by the Federal Reserve Bank. Later the same day, the Bank of America announced that it would be purchasing Merrill Lynch.

Due to the above factors, there was major instability on the global stock markets with major decreases in market value between the 15th and 17th of September 2008.

On the 16th September, the American International Group (AIG), which suffered due to its credit rating being reduced, was helped by the Federal Reserve which created an $85 billion credit facility to stop it from collapse.

Over the next two weeks, more banks failed and the two remaining banks-Goldman Sachs and Morgan Stanley converted into 'bank holding companies' so that they had more access to market liquidity. Numerous plans were put forward with intent to solve the crisis and in the end President George W. Bush and the Secretary of the Treasury announced a $700 billion financial aid package intented to limit the damage that the previous few week's events caused. The plan was received well by investors on Wall Street and around the world.

On 28th September it was announced that Fortis, a large banking and finance firm would be semi-nationalized with Luxembourg, Belgium and the Netherlands investing over 11 billion Euros into the company. On Monday 29th September, it was announced that the US bank Wachovia would be bought up by Citigroup (this deal fell through in early October 2008 and Wachovia opted for a more favourable offer from Wells Fargo) and stock market values fell dramtically in both the US and Europe. Later that day, Iceland nationalized the Icelandic lender Glitnir.

Finally, on Tuesday 30th September 2008, stock markets begain to rise again, although the credit markets remained very tight. It was also announced that 9 billion Euros was being made available for the bank Dexia by France, Belgium and Luxembourg.

Consumer spending has fallen, and banks are much less likely to approve loans, and with many countries now in a recession, there will me more hard times ahead.

The events described above started a plethora of problems in the economic and political world and continued through the end of 2008 into the beginning of 2009 and is likely to continue effect the world for months and years to come.

Read more here and here...

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