Archive for May, 2012

May 19, 2012

Nazi Germany Money System

With regard to the Nazis’ economics, I believe it’s well documented that such economic “recovery” as they managed from the mid-thirties to the height of WWII was a very unstable thing: it was based on converting the whole economy to a war economy as soon as they could (years before WWII started), and it was fuelled by plunder and violence from the word go. It would have collapsed if they hadn’t gone on a programme of invading one country after another and looting their assets, with a fair amount of expropriation of their own citizens thrown in. And when the military expansion came to an end, it did collapse.

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SUBMITTED BY ABDUL ALHAZRED ON FRI, 2008-05-09 19:58
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How Hitler defied the bankers

Many people take joy in saying Wall Street and Jewish bankers “financed Hitler.” There is plenty of documented evidence that Wall Street and Jewish bankers did indeed help finance Hitler at first, partly because it allowed the bankers to get rich (as I will describe below) and partly in order to control Stalin. However, when Germany broke free from the bankers, the bankers declared a world war against Germany.

When we look at all the facts, the charge that “Jews financed Hitler” becomes irrelevant. Los Angeles Attorney Ellen Brown discusses this topic in her book Web Of Debt…

When Hitler came to power, Germany was hopelessly broke. The Treaty of Versailles had imposed crushing reparations on the German people, demanding that Germans repay every nation’s costs of the war. These costs totaled three times the value of all the property in Germany.

Private currency speculators caused the German mark to plummet, precipitating one of the worst runaway inflations in modern times. A wheelbarrow full of 100 billion-mark banknotes could not buy a loaf of bread. The national treasury was empty. Countless homes and farms were lost to speculators and to private (Jewish controlled) banks. Germans lived in hovels. They were starving.

Nothing like this had ever happened before – the total destruction of the national currency, plus the wiping out of people’s savings and businesses.  On top of this came a global depression.  Germany had no choice but to succumb to debt slavery under international (mainly Jewish) bankers until 1933, when the National Socialists came to power. At that point the German government thwarted the international banking cartels by issuing its own money. World Jewry responded by declaring a global boycott against Germany.

Hitler began a national credit program by devising a plan of public works that included flood control, repair of public buildings and private residences, and construction of new roads, bridges, canals, and port facilities. All these were paid for with money that no longer came from the private international bankers.

The projected cost of these various programs was fixed at one billion units of the national currency. To pay for this, the German government (not the international bankers) issued bills of exchange, called Labor Treasury Certificates. In this way the National Socialists put millions of people to work, and paid them with Treasury Certificates.

Under the National Socialists, Germany’s money wasn’t backed by gold (which was owned by the international bankers). It was essentially a receipt for labor and materials delivered to the government. Hitler said, “For every mark issued, we required the equivalent of a mark’s worth of work done, or goods produced.” The government paid workers in Certificates. Workers spent those Certificates on other goods and services, thus creating more jobs for more people. In this way the German people climbed out of the crushing debt imposed on them by the international bankers.

Within two years, the unemployment problem had been solved, and Germany was back on its feet. It had a solid, stable currency, with no debt, and no inflation, at a time when millions of people in the United States and other Western countries (controlled by international bankers) were still out of work.  Within five years, Germany went from the poorest nation in Europe to the richest.

Germany even managed to restore foreign trade, despite the international bankers’ denial of foreign credit to Germany, and despite the global boycott by Jewish-owned industries. Germany succeeded in this by exchanging equipment and commodities directly with other countries, using a barter system that cut the bankers out of the picture. Germany flourished, since barter eliminates national debt and trade deficits. (Venezuela does the same thing today when it trades oil for commodities, plus medical help, and so on. Hence the bankers are trying to squeeze Venezuela.)

Germany’s economic freedom was short-lived; but it left several monuments, including the famous Autobahn, the world’s first extensive superhighway.

Hjalmar Schacht, a Rothschild agent who was temporarily head of the German central bank,  summed it up thus… An American banker had commented, “Dr. Schacht, you should come to America. We’ve lots of money and that’s real banking.” Schacht replied, “You should come to Berlin. We don’t have money. That’s real banking.”

(Schact, the Rothschild agent, actually supported the private international bankers against Germany, and was rewarded by having all charges against him dropped at the Nuremberg trials.)

This economic freedom made Hitler extremely popular with the German people.  Germany was rescued from English economic theory, which says that all currency must be borrowed against the gold owned by a private and secretive banking cartel — such as the Federal Reserve, or the Central Bank of Europe — rather than issued by the government for the benefit of the people.

Canadian researcher Dr. Henry Makow (who is Jewish himself) says the main reason why the bankers arranged for a world war against Germany was that Hitler sidestepped the bankers by creating his own money, thereby freeing the German people. Worse, this freedom and prosperity threatened to spread to other nations. Hitler had to be stopped!

Makow quotes from the 1938 interrogation of C. G. Rakovsky, one of the founders of Soviet Bolsevism and a Trotsky intimate. Rakovsky was tried in show trials in the USSR under Stalin. According to Rakovsky, Hitler was at first funded by the international bankers, through the bankers’ agent Hjalmar Schacht. The bankers financed Hitler in order to control Stalin, who had usurped power from their agent Trotsky. Then Hitler became an even bigger threat than Stalin when Hitler started printing his own money.
(Stalin came to power in 1922, which was eleven years before Hitler came to power.)

Rakovsky said:

“Hitler took over the privilege of manufacturing money, and not only physical moneys, but also financial ones. He took over the machinery of falsification and put it to work for the benefit of the people. Can you possibly imagine what would have come if this had infected a number of other states?” (Henry Makow, “Hitler Did Not Want War,” http://www.savethemales.com March 21, 2004).

Economist Henry C K Liu writes of Germany’s remarkable transformation:

“The Nazis came to power in 1933 when the German economy was in total collapse, with ruinous war-reparation obligations and zero prospects for foreign investment or credit. Through an independent monetary policy of sovereign credit and a full-employment public-works program, the Third Reich was able to turn a bankrupt Germany, stripped of overseas colonies, into the strongest economy in Europe within four years, even before armament spending began.” (Henry C. K. Liu, “Nazism and the German Economic Miracle,” Asia Times (May 24, 2005).

In Billions for the Bankers, Debts for the People (1984), Sheldon Emry commented:

“Germany issued debt-free and interest-free money from 1935 on, which accounts for Germany’s startling rise from the depression to a world power in five years. The German government financed its entire operations from 1935 to 1945 without gold, and without debt. It took the entire Capitalist and Communist world to destroy the German revolution, and bring Europe back under the heel of the Bankers.”

These facts do not appear in any textbooks today, since Jews own most publishing companies. What does appear is the disastrous runaway inflation suffered in 1923 by the Weimar Republic, which governed Germany from 1919 to 1933. Today’s textbooks use this inflation to twist truth into its opposite. They cite the radical devaluation of the German mark as an example of what goes wrong when governments print their own money, rather than borrow it from private cartels.

In reality, the Weimar financial crisis began with the impossible reparations payments imposed at the Treaty of Versailles. Hjalmar Schacht – the Rothschild agent who was currency commissioner for the Republic – opposed letting the German government print its own money…

“The Treaty of Versailles is a model of ingenious measures for the economic destruction of Germany.  Germany could not find any way of holding its head above the water, other than by the inflationary expedient of printing bank notes.”

Schact echoes the textbook lie  that Weimar inflation was caused when the German government printed its own money.  However, in his 1967 book The Magic of Money, Schact let the cat out of the bag by revealing that it was the PRIVATELY-OWNED Reichsbank, not the German government, that was pumping new currency into the economy. Thus, the PRIVATE BANK caused the Weimar hyper-inflation.
Like the U.S. Federal Reserve, the Reichsbank was overseen by appointed government officials, but was operated for private gain. What drove the wartime inflation into hyperinflation was speculation by foreign investors, who sold the mark short, betting on its decreasing value. In the manipulative device known as the short sale, speculators borrow something they don’t own, sell it, and then “cover” by buying it back at the lower price.

Speculation in the German mark was made possible because the PRIVATELY OWNED Reichsbank (not yet under Nazi control) made massive amounts of currency available for borrowing. This currency, like U.S. currency today, was created with accounting entries on the bank’s books. Then the funny-money was lent at compound interest. When the Reichsbank could not keep up with the voracious demand for marks, other private banks were allowed to create marks out of nothing, and to lend them at interest. The result was runaway debt and inflation.

Thus, according to Schacht himself, the German government did not cause the Weimar hyperinflation. On the contrary, the government (under the National Socialists) got hyperinflation under control. The National Socialists put the Reichsbank under strict government regulation, and took prompt corrective measures to eliminate foreign speculation. One of those measures was to eliminate easy access to funny-money loans from private banks. Then Hitler got Germany back on its feet by having the public government issue Treasury Certificates.

Schacht , the Rotchschild agent, disapproved of this government fiat money, and wound up getting fired as head of the Reichsbank when he refused to issue it. Nonetheless, he acknowledged in his later memoirs that allowing the government to issue the money it needed did not produce the price inflation predicted by classical economic theory, which says that currency must be borrowed from private cartels.

What causes hyper-inflation is uncontrolled speculation. When speculation is coupled with debt (owed to private banking cartels) the result is disaster. On the other hand, when a government issues currency in carefully measured ways, it causes supply and demand to increase together, leaving prices unaffected. Hence there is no inflation, no debt, no unemployment, and no need for income taxes.

Naturally this terrifies the bankers, since it eliminates their powers. It also terrifies Jews, since their control of banking allows them to buy the media, the government, and everything else.

Therefore, to those who delight in saying “Jews financed Hitler,” I ask that they please look at all the facts. 

May 16, 2012

JPM 2 Billion Bluff

ANON REPOSTED:

REICH, OTHERS FORECAST JPMORGAN CRISIS SPREADING, CALL FOR GLASS-STEAGALL

May 13 (LPAC)–JPMorgan Chase Chairman and CEO Jamie Dimon appeared on NBC’s “Meet the Press” Sunday morning and tried to chill out the crisis triggered by his bank’s suddenly announced major derivatives-market losses: “It’s not life-threatening,” Dimon lied, and forecast his bank would still show a profit this quarter. Humorously, Dimon insisted on the one hand that he knows with absolute certainty that the huge London CDS trades were just hedging risk, not casino bets for the bank; on the other hand, he said he didn’t know about the size or nature of these trades until this week!

Clinton Labor Secretary Robert Reich’s blog entry was again on Glass-Steagall on Sunday, and he warned the truth will out: “Word on the Street is that J.P. Morgan’s exposure is so large, that it can’t dump these bad bets without affecting the market and losing even more money. And given its mammoth size and interlinked connections with every other financial institution, anything that shakes J.P. Morgan is likely to rock the rest of the Street.” Reich concluded: “What just happened at J.P. Morgan reveals how fragile and opaque the banking system continues to be, why Glass-Steagall must be resurrected, and why the Dallas Fed’s recent recommendation that Wall Street’s giant banks be broken up, should be heeded.”

An article in the Sunday London Guardian noted: “There is thought to be more than one high-profile trade behind the losses — which the bank has admitted could escalate. JP Morgan is being selective about the information being disclosed because its rivals might [!] try to move prices against it as it attempts to unwind the trades.” Some sources estimate JPM’s losses can go to $20 billion; the “wrong bets” were over $100 billion. Recall that LTCM’s collapse, in precisely such a derivatives predicament, unfolded over a full three months at the end of 1998, until the verge of a global financial blowout was reached.

New York Times financial reporter Gretchen Morgensen endorsed Glass-Steagall in a Sunday column on JPMorgan and Dimon’s hubris: “This much is clear: If the Glass Steagall law were still around, the problematic trading at JPMorgan would not have occurred.” This was after reviewing former FDIC Deputy Commissioner Michael Greenburger’s arguments, circulated Saturday afternoon, a complicated scenario that the Volcker Rule plus the Lincoln Rule would have ameliorated the loss.

On NBC “Meet the Press,” Sen. Carl Levin appeared opposite Dimon, strenuously arguing for the Volcker Rule and Levin-Merkeley: “So we’ve got to be very, very careful that the regulators here are not undermined by this huge effort to weaken the rule by putting in a huge loophole” that includes the trading involved in the JPMorgan loss. The “loophole” is the Obama Administration’s anti-Glass-Steagall Dodd-Frank Act itself. Even one of the “Austrians” at the zerohedge.com website commented, “The most important thing not said [on “Meet the Press”], was Glass Steagall, the one law whose overturning allowed the commingling of deposits and hedge fund activity courtesy of Gramm-Leach-Bliley, hilariously called the Financial Services Modernization Act of 1999. If America is to have even a remote hope of returning to normalcy, Glass-Steagall has to be reinstated.

POST 2:

That’s why human beings organize themselves into nation states , set up national credit and Hamiltonian Banking. To counter the British monetarist system which after all is based on Mandeville.

And instead of clamoring for morality in a Mandeville Grumbling Hive (the inspiration for the current system), apply Glass-Steagall firmly and accros the board as FDR did using the nation state.

POST 3:

Forgive me for being simplistic here, but what I see from DMcW’s article is the quantity theory of money being applied in an effort to stabilise prices. This widely-accepted theory (even taught to CA’s like myself) espouses that prices move according to the supply of money, ie., more money higher prices and vice versa.
Essentially, money supply should maintain prices in equilibrium over the medium term (anything over 12 months).
Therefore, as DMcW’s article sets out, deleveraging reduces the supply of money (using the M2 parameter) thus causing deflation while intervention (releveraging) increases the money supply thus causing inflation.
Assuming the above, I assume David you are alluding to either runaway deflation or inflation over the medium term. I can only see a real risk of deflation over the medium term, I see no medium term inflation risk whatsoever.
While I “get” David’s analysis as to the effects, I would ask myself what is the deep-rooted cause of such an imbalance within the EZ monetary area and the only explanation I can see is that a choice has been made by the ECB (including the Irish and Italian members) that the solvency of governments and the liquidity of “core” country banking systems outweigh the need to reflate the periphery countries asset bases. Thus we have deleveraging in Ireland and releveraging in Germany, France, Italy and Spain. Now, the banks who have been releveraged, where are they going to invest this liquidity? Irish real estate, don’t think so.
They will invest in their own nations’ Government bonds because of political pressure to fund deficit spending and because they earn circa 500bps margin for the effort and in commodities because they are liquid investments. Irish deflation simply does not weigh upon the ECB as the “core” is being munitioned to face a certain Irish EZ withdrawal.
If, however the ECB had played it straight according to monetary theory, they would have employed a much longer LTRO timescale of at least 7/10/15 years and would have lent to each country’s central bank for deficit spending and to domestic banks for reflation of each affected economy.
Unfortunately, our government and central bank chose not to put up the good fight.
Vae victis as the Romans (ancient) would have said…

ref article 2012/05/14 

What Jamie Dimon didn’t tell you on ‘Meet the Press’ – Los Angeles Times

WashingtonPost

The European Stabilization Mechanism, Or How Goldman Sachs Captured Europe