The Collapse of a Complex Enemy

In Part I we presented the rich history of the City of London.

In Part II we presented the monetary history of America. We looked at how the colonies were forced to use fiat currency; how the birth of the Republic started with a central bank and huge public debts; how Andrew Jackson defeated the globalist central bankers, and how the Civil War forced America back onto fiat currency, which led to eye-watering public debt. We also showed how those Civil War bonds were snapped up by rich Prussians, including Otto von Bismarck and Gerson von Bleichroder.

Part III showed how globalist investors, with the help of Bismarck’s massive spy network, managed to subvert the United States Constitution’s 14th Amendment, and avoid a potential collapse in Civil War bond prices. The 1871 Treaty of Washington became one of the foundations for international law, laying the groundwork for the establishment of the League of Nations, and later the United Nations. Organizations such as the WHO use the UN’s system of treaties and international law to essentially override national sovereignty and implement its globalist policies. The UN and the WEF have now openly declared their partnership, signalling the co-ordination between unelected UN officials and the army of multinational corporations, which we refer to as the ReichsWEF.

Part IV followed the money from the Civil War bonds after 1871. America’s debts were financed in the City of London, and globalist investors locked in enormous profits. European investors, mainly in Britain and Germany, used international corporate structures to control the resources and supply chains of America. This marked the birth of the infamous American monopolies, as well as the beginning of multinational corporations. In particular, the German-banking sector in New York had become so powerful, that they successfully implemented the US Federal Reserve; a private central bank modelled from the German Reichsbank.

The architect of the Federal Reserve was Paul Warburg. While he was busy implementing a central bank, his brother Max was advising the Kaiser on military preparations for a war that had not yet begun. Unsurprisingly, America’s entry into WWI allowed the Federal Reserve to rapidly expand its balance sheet, and flood the nation with its new currency, known as Federal Reserve Notes.

In this final part to the 1871 series, we will bring the monetary fiasco into the modern era, and show how the United States and its mighty dollar have become hostage to the globalist elite. We will show how We The People have been forced to defend the value of a fiat system that serves the globalist beast and its desire for a New World Order.

The Fractional Reserve Trophy

When the Federal Reserve was approved in 1913, it began America’s transition to fractional reserve banking. Prior to 1913, the US used a gold-backed currency, whereas other countries such as Germany and Britain used a central bank to maintain a “gold standard”. The main difference was that central banks that were on a gold standard could print more currency than the amount of gold they had in their central banks – which is in essence not money, but credit. Regardless, this allowed the central bank of Germany and Britain to expand or reduce the amount of currency in circulation, which gave them enormous power over their economies.

Up until 1913, the US did not have a central bank, and so it was very difficult for a bank to expand credit without having equivalent gold reserves:

In other words, if one bank started issuing too many banknotes against their gold deposits, other competing banks would smell a rat, and people may not accept the banknotes for payment. Therefore, this was a self-regulating, decentralized banking system where each bank “checked” another bank’s notes for any funny business. This was the monetary system that was used throughout the entire American Industrial Revolution, and it worked well because the creation of credit was appropriately restricted.

When the Federal Reserve was implemented, America’s banking system changed overnight. America was now subject to one central bank, indivisible, with the sole power to create credit.

What this meant was that US currency was no longer gold-backed, but rather on a gold standard. The paper currency used by the People stated that it was redeemable in gold, but this was merely a promise “in the event” someone wished to redeem their cash for gold coin. In reality, the new currency was money printed by the Fed. They were called “Federal Reserve Notes”; $1, $5, $20 “notes” with a promise to redeem in gold, on demand.

Therefore, all the green areas in the above diagram was credit, to be used as money. The trick was that this money no longer had a 1:1 gold-backing:

Therefore, similar to Great Britain and Germany, the Federal Reserve could now control the issuance of credit. The more credit in the system, the more power the Fed acquired over the economy. However, in 1913, the American economy was chugging along quite smoothly, and there was no real demand for people to go into debt. Therefore, the Fed was limited in it ability to expand credit. That is, until 1917:

When the US entered WWI, the emergency allowed the federal government to be the borrower that the Federal Reserve needed to expand the supply of credit, and thereby begin to take control over the American economy.

Recall in Part IV that Paul Warburg was Vice Governor of the Fed during this period, while his brother was advising the German Kaiser on the other side of the war.

Whoever was in control of the Federal Reserve was now in control of the money and credit supply of America. Therefore, the Federal Reserve represented a powerful trophy for those who owned a stake in the private central bank.

What on earth could they possibly do with all this power?

The Fed’s Strong Man

After WWI, the federal government expanded its debt by 2700%. It needed a professional financial partner; someone the government could rely on to handle all the money coming in and out of the federal bank account:

One of the key players in the creation of the Federal Reserve, and a man who attended the “duck hunt” expedition on Jekyll Island in 1910, was Benjamin Strong. Strong was appointed as the governor of the Fed of New York in 1914. Not surprizingly, Strong and Warburg held a tight grip on the central bank from that moment forward:

Strong is perhaps the most important player with respect to the inflationary boom of the 1920s, and the subsequent bust and depression of the 1930s.

When Strong poured whiskey into the stock market, bubbles formed everywhere. We can work out the true motive behind Strong’s manipulation of the stock market, if we follow the money. By 1924, the “roaring 20s” were well under way, and Federal Reserve Notes were overflowing into the broader economy, and into Germany.

In our Not Since 1917 series, we showed how the Dawes and Young Plan injected huge amounts of cash into Germany in the form of loans from America. These loans were facilitated by banks on Wall St, as well as German banks such as Deutsche Bank. As the German people descended into a hyperinflationary hell-hole, the nation’s resources, industry and supply chains were being snapped up for pennies on the dollar. The corporate cartels that were established during the American Industrial Revolution were now more powerful than ever, thanks mainly to the “goosing” of the money supply by Benjamin Strong.

The German people were systematically destroyed. After the shock of losing WWI, the Weimar hyperinflation was their icing on the cake. Most Germans were in desperate poverty. Drug use became prolific, as did prostitution, transgenderism and pedophilia. Pedophiles from all over the world marvelled at their trips to Berlin, enjoying their ability to have children delivered to their door “as easy as pizza”.

None of this worried the international bankers and multinational corporations. The speculative boom in Wall St. provided ample cash to continuously expand their balance sheets, and of course, their bottom lines.

The role America played in Germany during the ‘20s would not have been possible without the great stock market bubble, and the enormous credit expansion facilitated by Benjamin Strong, and the Federal Reserve. Strong died in 1928. Unfortunately, he never witnessed the result of his monetary arrogance and hubris. The Great Contraction was just around the corner.

Boom, Bust, Bankruptcy

The spectacular crash of 1929 was inevitable. To understand how the rampant deflation and the subsequent great depression was caused, we only need to look back at how the American colonies fared when they were forced onto fiat currency. The result, without exception, was always the same. So was the trigger:

The great credit contraction was coming. While the world was partying through the 20s, and flapper girls were entertaining the gentlemen of new found wealth, the bankers behind the scenes knew something had gone terribly wrong. Even Strong knew the shit was going to hit the fan, no matter what:

The great credit expansion overseen by Strong and the New York Fed, was now going to be forced into a credit contraction, which would also be overseen by the New York Fed.

“In 1929, New York repeatedly requested to raise its discount rate; the Board denied several of the requests. In August the Board finally acquiesced to New York’s plan of action, and New York’s discount rate reached 6 percent”¹³

Once the Fed started raising rates, speculators needed to sell assets to pay back loans. When they sold assets, prices dropped, which forced more speculators to sell assets in order to pay back loans. The deflationary death spiral was underway, and the Fed were the ones that pulled the trigger. In 2002, Ben Bernanke apologized for it:

Within a few months of the interest rate hikes, the stock market began its violent decline, and lost nearly 90% over the following three years. While many speculators, brokers and bankers hit the wall, the monetary system from 1929 – 1932 was still operating properly. The gold standard managed by the Federal Reserve remained relatively stable:

In 1932, the Presidential election campaign between Hoover and FDR was underway. A nasty rumor began to spread regarding FDR and the gold standard:

When depositors began to withdraw their money from banks in the form of gold coin, the real depression began. Since the nation was on a gold standard, any gold withdrawn from a bank would result in banks being forced to reduce their loan exposures. The result was that the foreclosure rates on businesses, farms and mortgages skyrocketed. The Federal Reserve’s gold deposits also contracted, forcing the amount of credit in circulation to contract even further. It was a mess.

The night before the 1932 election, FDR addressed the rumors about gold confiscation. He vehemently denied the rumors, and the following day he won the election in a landslide. Between December 1932, until FDR took office in 1933, gold was being withdrawn at a ferocious rate from the banking system. The entire monetary system of the United States was about to collapse. The day FDR took office, the rumors of his true intentions became reality:

During the chaos between 1932 – 1934, FDR surrounded himself with a group of advisors, which he termed the Brains Trust. With the most significant gold heist looming on the horizon, his financial advisor was perhaps his most important man in the Brains Trust.

While James Warburg was advising FDR, his uncle Max was on the other side of the Atlantic, advising the German Reichsbank:

Incidentally, Max Warburg served on the board of IG Farben during the 1920s, and his brother Paul Warburg served on the IG Farben wholly owned U.S. subsiduary. Regardless, the significance of what FDR accomplished during this period was monumental. The United States defaulted on its loans, and effectively declared bankruptcy:

By annulling the gold clauses in America’s public debt, FDR declared to the world that the federal government was bankrupt; plain and simple.

It was time to bring the creditors in.

A Globalist Currency is Born

When FDR revalued the price of gold to $35 per ounce, he effectively reduced the amount of gold the US Government bonds were promising to pay back to the bondholder. Investors around the world were aghast, and sought legal advice. Eventually, there was only one institution which could settle the matter; that was the US Supreme Court:

Recall that we’ve shown that Section Four of the Fourteenth Amendment contained the notorious Public Debt Clause that sent shivers down the spines of international bond investors; such as Gerson von Bleichroder and Otto von Bismarck.

Perry wished to be paid back in the specific quantity of gold that his government bond promised. He had a solid case, and the outcome was not guaranteed to go in FDR’s favor. However, under no circumstances was the President going to accept the Supreme Court’s verdict if it went against his plans:

The Brains Trust surrounding FDR were using every trick in the book to achieve their desired end-state. Leaking rumors to the press and threats to stack the Supreme Court had become an everyday occurrence. In the end, the Supreme Court ruled in favor of FDR, 5-4. The decision was highly controversial, and many considered the Supreme Court had made a political decision, rather than a constitutional one:

The Perry decision sealed the fate of the United States. It had defaulted on its promise to maintain a gold standard at $20.67 per ounce. To an international investor, it was a default; without question. When a corporation defaults, they enter into “voluntary administration”, whereby their creditors collect all the assets which they can either liquidate or re-organize into a new model.

Under FDR, the federal government found themselves in the exact same position. The first step was to collect all the assets.

No Gold For You!!

From 1875 – 1914, the American Industrial Revolution operated without a central bank, using a hard-currency standard. Gold and silver were used as legal tender, as were treasury certificates and various other bank notes. Following its establishment in 1913, the Federal Reserve did not prohibit the use of gold coin, but encouraged the People to use their Federal Reserve Notes, suggesting they should treat them “as good as gold”. However, the People always had the option of using physical gold coins as legal tender, if they so wished.

However, when the Gold Reserve Act of 1934 was passed by Congress, that all changed. Overnight, Americans were now banned from owning any form of monetary gold. This included corporations, banks, and even the Federal Reserve itself. Gold from all over the country needed to be immediately shipped to the federal Treasury’s vault. In return, gold holders would be compensated at the rate of $20.67 per ounce.

With the exception of the federal Treasury, America was now “goldless”. The federal government had now collected the asset which the creditors wished to re-organize; the national monetary system.

Put simply, America’s money was used to value every single asset in the nation. The cars, boats, land, houses, factories, farms and food were all given a “price”. Those prices were determined using the gold standard implemented and managed by the Federal Reserve, at $20.67 per ounce. Therefore, the cumulative sum of everything in America could be reduced to a basic dollar value.

By confiscating and banning the ownership of all monetary gold in America, the monetary system could be completely re-organized, overnight. That is exactly what happened when FDR “revalued” the dollar to a new gold standard of $35 per ounce, which was 70% higher than before.

“New dollars” could now be issued to reflect the higher gold price, and there was nothing any American could do about it. Anyone who tried to bring in gold after the revaluation would be guilty of violating the Gold Reserve Act, and could be fined and/or imprisoned.

The new dollars would be printed and managed by the Federal Reserve. Therefore, everything in America was effectively re-priced in Federal Reserve Notes. However, there was a catch. No one was allowed to own gold, not even the Federal Reserve. So how could the Federal Reserve operate on this new gold standard, when they were banned from owning gold, or having it on deposit?

From the Federal Reserve’s own website, it is clear they had no ability to have their Federal Reserve Notes on a gold standard, because they were not allowed to have any actual gold in their possession. All they had were irredeemable gold certificates from the Treasury. This was simply a promise that the Treasury was holding “X” amount of gold.

How in the hell was this new system going to work?

The Fiscal Agent and the Hostage

The new dollar was now in place and circulating throughout America. Because no one could own gold, there was no way of knowing if this currency was actually “as good as gold”. The gold standard test could only occur with international trade, and the ability for America to settle its balance of trade with other nations; which at the time was with physical gold.

Since the Federal Reserve was the Treasury’s fiscal agent, the irredeemable gold certificates were a declaration by Treasury of the gold they had on-hand. When America imported goods from another nation, that nation would receive USD, being the Federal Reserve Notes. These USD would be used in a similar fashion to vouchers – the other nation would give the USD to the Federal Reserve, and demand physical gold in return. The Federal Reserve would then instruct the Treasury to deliver gold to the other nation, and the trade would be settled.

If nations around the world received physical gold when they gave the Federal Reserve their USD vouchers, the world would believe America was back on a gold standard.

In this way, the Federal Reserve completely managed the Treasury’s gold, which represented the wealth of the nation. All the Treasury had to do was keep an accurate account of its gold deposits, and advise the Fed of their holdings, via irredeemable gold certificates.

The Treasury was now under the instruction of the Federal Reserve. If the Treasury did not do as they were instructed by the Fed regarding gold shipments, the “gold standard” would be threatened, and the value of the dollar could collapse, taking the American economy with it.

In turn, the Federal Reserve was allowed to expand the credit supply exactly as they could in the past. With their past mistakes forgiven, everything in America was now priced with Fed-money. No one in America could question, or test, the new gold-standard.

The gold in the Treasury’s vault was part of the federal government, which was of the people, by the people and for the people. That gold was now locked up by the Treasury, and nobody was allowed to use or own it. This gold was the collateral for a new monetary standard controlled by the Fed. This was how a bankrupt nation was re-organized to do trade with the rest of the world; as a hostage to a private central bank. It was a financial structure like none other in world history.

This was not a currency for American citizens, but instead a currency for the globalist money-lenders and merchants predominantly residing in the City of London. It was a special purpose vehicle (SPV), that could potentially be used to control the world’s money and trade.

James Warburg was ecstatic!!

Knowledge and Power

Sometimes history is simply a series of random events that follow each other through the arrow of time. Other times, history is a series of planned events that are meticulously carried out as they were stated in the past. In the latter, the future proves the statements of the past.

In this respect, the Federal Reserve, the roaring 20s, the stock market collapse, the banking crisis and the subsequent re-organization of the American monetary system were not random. They were deliberate events where financial globalists pre-empted their arrivals; either by open declarations or via concerned observations.

When the Gold Reserve Act of 1934 was passed, many financially savvy Americans had already shipped their gold off-shore. Was this simply a case of financial brilliance, reacting to the signals given by a free-market, or were those in power already forecasting their intentions to the world, exactly as Paul Warburg had done in 1902 with respect to the Federal Reserve?

In June, 1933, a full year before the Gold Reserve Act, James Warburg and a gaggle of international bankers representing their respective nations, arrived in London for the World Economic Conference. What was their main topic of discussion?

It is quite remarkable how the FDR administration accomplished the goals of the World Economic Conference in London in only a few short years.

When FDR increased the USD price of gold by 70%, gold began to flow into the Treasury. While most Americans were broke, hungry and willing to do anything for work, gold holders around the world were sending their bullion to America to capitalize on the new dollars on offer. In 1935, a year after the act, Treasury holdings of gold were 8,998 metric tonnes. By 1940, this had increased to 19,543 metric tonnes. Thats a heck of a lot of new dollars for the savvy, international investor!!

This enormous flood of gold allowed the Treasury to send more irredeemable gold certificates to the Federal Reserve, which in turn was allowed to expand the money supply as they saw fit. None of this had any lasting effect on average Americans, and by 1938 the economy was back at the precipice. World War II was looming, and the Fed had plenty of credit to issue.

Into the Bretton Woods

We have addressed many of the machinations of World War II in previous #PrussiaGate articles. What’s important to note is that the great Uranian experiment in Germany was coming to an end, because all the soldiers were literally too sick to fight; many of whom were suffering major withdrawals from Crystal Meth addictions. The other important thing to note was the amount of debt America found itself in after the war:

After WWI, the expansion of the money supply by the Fed fuelled an inflationary boom. However, the debt burden Americans found themselves in after WWII allowed for another huge expansion of the money supply. This would be used to fuel something else; the takeover of the entire world’s monetary systems.

The 1944 Bretton Woods Agreement was not a reactionary event from the spoils of war. It was the stated objective of the London World Economic Conference back in 1933. The disagreement between Dexter White and John Maynard Keynes appeared nothing more than a show; the final outcome was never in question.

In Part III, we showed how the 1871 Treaty of Washington provided legal legitimacy for the United Nations. One of the UN’s first objectives was to ensure nation states effectively handed over their sovereign monetary systems to the Federal Reserve, via a treaty:

So now, the whole world was forced to adopt a currency that was born from a nation that defaulted on its federal debt obligations under the FDR administration. The U.S. dollar was now considered “as good as gold” for international trade. However, we know that the U.S. dollar was created by the Federal Reserve, which was allowed to expand the money supply based on the irredeemable gold certificates it received from the Treasury.

Therefore, if other nations also treated the USD as “gold”, they could theoretically expand their own money supplies based on the amount of USD their respective Treasuries owned.

Consider this from a fractional reserve perspective, which every central bank in the world operated on at the time. The USD was in a fractional reserve system, which could be used by other nations in their fractional reserve system. The only gold backing were the irredeemable gold certificates from the Treasury, and some gold that was in the vaults of other central banks.

What could possibly go wrong?

The Dollar’s Permanent European Vacation

With the USD now being used in the settlement of international trade, tens of billions of dollars were now sitting in central bank vaults all over the world. Generally speaking, these were used by nations to settle their balance of payments with other countries. Domestically, the Japanese still used Yen, the British used pound sterling, the Dutch used guilders, and so on. After WWII, foreign exchange controls were still very tight, and the USD was confined to domestic use in America, and to international use between central banks.

That was all about to change.

In our series, Havens, Horse Heads and Hermann, we presented the timeline and evolution of the Eurodollar. These are not Euros, but USD that are physically located outside of the United States. In 1948, billions of Eurodollars were shipped across the Atlantic to help rebuild Europe. This was known as the Marshall Plan:

This was a near carbon-copy of the Dawes and Young Plans decades prior. The man in charge of dispersing Marshall Plan funds was Hermann Abs. Hermann was the No. 1 commercial banker for the Nazi regime. He was the manager of Deutsche Bank, and sat on the supervisory board of I.G. Farben. He was arrested for war crimes and was meant to be tried at Nuremberg. Instead, the British intervened at the request of German banker, Robi Mendelssohn, and Hermann Abs was appointed to deal out Marshall Plan funds.

Robi Mendelssohn was the head of the Mendelssohn banking dynasty, which were the original Prussian bankers for Frederick the Great, who in turn provided them immunity from Jewish persecution.

Hermann oversaw the allocation $13 billion of economic aid from the Marshall Plan. Approximately $3 billion of those USD found themselves in private bank vaults in Switzerland, and the City of London. This marked the beginning of the stratospheric rise of the globalist currency, known as the Eurodollar.

Eurodollar Mania

The attractiveness of these Eurodollars was enormous. Holders of this new currency enjoyed the luxury of a currency that was allegedly pegged to gold, but without any type of regulation or taxation, whatsoever. It pretty quickly became the currency of choice for criminals, dictators and some of America’s greatest enemies, such as the CCP and the Soviet Union. As long as these Eurodollars stayed out of American jurisdiction, they could piggy back on the dollar’s value as the world’s reserve currency.

Most importantly, the origins of these new eurodollars was always from the Federal Reserve.

However, there was no rate of return on these dollars. They simply sat in Swiss and London vaults, attracting zero interest. That is, until someone in the City of London came up with an idea that would change the financial world, forever:

That man, was Siegmund Warburg:

How to Make Eurodollars “Interest”ing

Before Siegmund, most Eurodollars were in Switzerland and the City of London. Their value was derived by the “gold standard” the world believed the USD was tied to; $35 per ounce. The shady group of bandits that were quickly getting on board the Eurodollar train could hide dollars in vaults, and use it to make payments around the world, without America having any power to stop them.

While these hidden dollars had value, there was still no way of getting interest on them. From the City of London, Siegmund Warburg devised his cunning plan. Eurodollars, which are free from American taxation and regulation, could be pooled together to provide loans to multinational corporations, which in turn could use these loans to conduct international trade.

These new “Eurobonds” could provide tax-free interest to anonymous bond holders throughout the entire world. Everybody, even dentists in Belgium, wanted to be part of this new phenomenon. As a result, USDs in America were exported offshore, turned into Eurodollars, and provided tax-free returns to global investors. By 1969, the Eurodollar market exceeded $250 billion, and was being hidden in tax-havens around the world; particularly in New Zealand, where Hermann Ab’s Kiwi colleague helped establish anonymous trust structures.

Siegmund Warburg’s Eurobond structures were in high demand. More and more dollars were needed to finance the insatiable appetite for Eurodollars and Eurobonds. The US involvement in the Vietnam war provided the perfect platform for the mass-export of USDs out of America. By 1971, nearly $141 billion was printed and sent offshore to pay for Vietnam.

With JFK assassinated, the threat of an imminent nuclear war, a kinetic war raging in Vietnam, and Eurodollars now flying all over the world, people began to smell a rat. How the hell was the Federal Reserve maintaining the gold standard promised in the Bretton Woods Agreement?

Les Patriotes Français

General Charles de Gaulle was no fan of the British or the Americans. He acquired his healthy scepticism following his interactions with Winston Churchill and FDR during WWII. While he welcomed their alliance, he was also aware of the ambitions of both leaders to create a new empire from the ashes of WWII.

France was a disaster during the war. It was swiftly conquered by the Nazis, and many believed that Vichy France was a puppet government of Hitler. Against this backdrop, General de Gaulle self-exiled between London and Algeria, and was considered the recognized leader of a “Free France”.

After WWII, Vietnam instantly declared its independence from France, which began a violent and costly war between the Vietnamese and French colonialists. When de Gaulle watched America enter the conflict in 1961, he knew a similar outcome lay ahead for Americans. He also began to wonder how America was paying for this new war, considering their currency was considered “as good as gold”. In 1965, de Gaulle knew the world was being hoodwinked, and he declared as much to the world. His 2 minute speech was monumental:

French patriots knew something had gone completely pear-shaped with the Bretton Woods Agreement, and that there was no feasible way that the Federal Reserve was honoring the gold standard. With so many Eurodollars flying around the world, they began to make their way into hedge funds that were similar to Soros’ future activities. These hedge funds were using Eurodollars to attack national currencies. The British pound fell, as did the Deutschmark in 1969:

The attack on the dollar was quite easy. The German Reichsbank held a huge quantity of Eurodollars. They would lend them out to speculators, who would then deliver these dollars to the Federal Reserve, and demand physical gold in payment. That gold would then be delivered as collateral for a new USD loan, which in turn demanded more physical gold from the Federal Reserve.

However, the Federal Reserve did not own any gold. They were passing the gold deliveries over to the US Treasury, who were forced to comply, otherwise the world would discover the gold standard was fake. If that was realized, the USD would instantly collapse, and take down the American economy with it.

De Gaulle’s warning to the world did not go unheeded. When the French realized the jig was up with respect to the USD gold standard, de Gaulle’s successor, Georges Pompidou, took decisive action:

When the Gold Reserve Act of 1934 was passed, the monetary wealth of the nation was secured in the Treasury’s vault. Eurodollars from the German Reichsbank were used to cut that wealth by more than half, in the matter of a few months. This was an attack like no other.

Nixon was forced to take the USD off the gold standard in order to save what was left in the Treasury’s vault. All of this was due to the enormous amount of Eurodollars floating around the world, completely dismantling the ability for the USD to maintain a gold standard. This was all thanks to the actions of the Federal Reserve.

It took the “France First” patriots such as de Gaulle, Pompidou and the French Navy to wake up the world.

Unfortunately, the story does not end there.

From the Barrel of a Cannon

Nixon’s 1971 announcement did not go unnoticed. The price of gold began to rise rapidly. The world was wondering what to do with all their Eurodollars. Yesterday, they were worth $35 per ounce of gold, and being used for global trade. Today, no one knew what they were worth, and no one was sure who was going to accept them for global trade into the future.

Something drastic needed to be done to convince the world that USD, aka Federal Reserve Notes, still had some sort of value. Around the world, the ultimate question was, what on earth were these Eurodollars worth?

Nixon, Kissinger, and the Treasury decided that the value of the USD would now come from a new “petrodollar standard”.

“Arab oil producing countries, under US military pressure, were forced to sell oil only in dollars, a direct prop to the dollar when the US economy was in terminal decline.”³⁴

Put simply, in order for dollars to have any demand whatsoever, everyone in the world must buy oil in dollars. This provides the first stage of demand for USD. Secondly, oil producing nations, especially Saudi Arabia, must not sell the dollars they derive from oil sales; instead, they must recycle their USD into federal government bonds.

If anyone did not comply with this new arrangement, the demand for dollars would collapse. This would not only destroy the American economy, but also other central banks around the world which were now holding USD as their reserve currency. Therefore, it was in everyone’s interest to keep the petrodollar standard going for as long as possible. The US government was even willing to use its military to enforce the complex, if necessary.

The first nation state that needed convincing was Saudi Arabia. Nixon did not send over the army, navy, or even a crack-group of special forces. He sent something far more dangerous to the Saudis……….a banker.

At the time, the deal Nixon made with the Saudis was significant. From 1974, the world believed that the petrodollar standard was a feasible alternative to a gold standard. As always, the devil was in the detail. This new monetary system needed a few extra components to keep it going; debt, dollars, and war.

The Stages of a Eurodollar Complex

In the modern world, in order to produce things, it needs cheap, abundant energy. One of the key components to the energy complex is oil.

In this primary stage, the demand for oil must first pass through the toll gates of the USD. This secures the primary demand for dollars throughout the world, and ensures that nations around the world keep them in “reserve”.

To ensure the dollars used for the purchase of oil were not immediately used, Nixon’s Treasury convinced the Saudis to recycle their dollars into US Government bonds. This way, the federal government could spend more money than it receives in tax revenue, if necessary.

Stage 3 shows how the US Government bonds, purchased by the Saudis and other nations, are funded. The bonds are federal government obligations, which must meet the terms of the contract. If the government fails to meet its obligations, it goes into default, and the complex collapses. Therefore, the US taxpayer is critical in maintaining the petrodollar complex.

The most important aspect of the federal government is how it spends its money. The US military enforces the petrodollar complex abroad, while the federal bureaucracy enforces government policy domestically. What is left goes toward various stimulus and welfare packages, such as “build back better”, and $2200 per month for illegal migrants.

For the petrodollar complex to be maintained, the American taxpayer must shoulder a burden of perpetual and ever-expanding debt obligations. Since 1971, federal debt levels have never retreated:

The reason for this ever-expanding line of credit is because the world is on a fiat system. As Murray Rothbard explained, fiat systems create inflationary booms, followed by deflationary busts. The bust always occur when credit contracts. The American colonies suffered this, multiple times, and the same thing occurred in 1929. Therefore, the Federal Reserve does not want credit to contract, ever. To achieve this in the current monetary system, American taxpayers must continue to service more and more debt.

The Federal Reserve is the lynchpin that provides all the dollars in the world to keep this going. However, the real sting in the tail is yet to come.

The Fifth Column

The previous section dealt with how demand is secured for the USD, and therefore a monetary value is determined for the currency. However, when a nation buys dollars in order to buy oil, the oil is consumed, and all that is left are the dollars. What happens to those dollars?

Before Bretton Woods, central banks would store gold in their vaults. This would allow them to create their own domestic currency (Yen, pounds, guilders, marks, etc.), as well as settle international transactions with their gold reserves. Since Bretton Woods, everything gold used to do, was replaced by USD.

Not only do other countries print their own currencies off the back of their USD “reserves”, they also settle international transactions with USD. Since these dollars are used globally, they are Eurodollars. Nearly all trade around the world is settled with them.

After a nation uses oil to “make stuff”, they need to sell that stuff around the world in order to buy stuff that other nations make. These transactions are facilitated using the foreign exchange market, where one domestic currency is swapped for another.

Take the simple example of an Australian who wishes to purchase a Japanese car. The buyer has Aussie dollars (AUD), and the seller wants Japanese Yen (JPY).

For the Australian to have a Japanese car, his AUD must first be delivered to his central bank. Since his AUD is a banknote against USD, his central bank gives him USD, which he then takes to the Japanese central bank. The Japanese then takes his USD, and gives him a banknote in JPY. The Aussie can now purchase his favorite Japanese car.

In other words, the common denominator in this entire transaction is the USD that is stored in central banks around the world. In practice, all of this is done in the blink of the eye, by FX dealers. Nobody sees all these inter-transactions occur. However, they absolutely do occur, at the place where the world’s international financiers have resided for nearly one thousand years:

These are staggering numbers. Consider that world GDP currently stands at approximately $100 trillion annually, or $400 billion per business day. Therefore, for every $1 of GDP created, worldwide, the City of London generates up to $15 of foreign exchange transactions to facilitate international trade. This is not a free service. The City of London provides their services for a fee; a fee that everyone in the world pays.

Recall in Part I, that nearly every aspect of world trade was domiciled in the City of London. The London Commodities Exchange, Bullion Exchange, Baltic Exchange, Stock Exchange, foreign exchange and insurance, all chose the square mile to conduct their business.

In other words, if the world wants to do trade, the City of London will get paid.

It is the Fifth Column.

The Collapse of Complexity

This is a complex enemy that uses international treaties, central banks and world trade to extract wealth from the people around the world in the form of fees, commissions, and Soros-like speculation.

The value of the USD is no longer tied to gold or silver, but to a fiat system propped up by a petrodollar standard. Today, Americans are held hostage by their own monetary system. They pay taxes to finance perpetual debt, and deliver young men and women to replenish the military to enforce the petrodollar complex. If either fails, dollars could instantaneously lose their demand, and bonds could collapse.

However, this is not just an American problem; it is a global problem. The United Nations’ Bretton Woods Agreement forced the USD to be used as the world’s reserve currency. When America was taken off the final remnants of a gold standard, the rest of the world’s currencies also relied on the value of the USD to prop up their own currencies.

All of this was facilitated by the Federal Reserve, an establishment that was formed in 1913 and has continued for over a century, delivering broken promise after broken promise. Paul Warburg promised a central bank would deliver financial stability; it did not. The Federal Reserve managed a currency that was backed by its gold deposits; it now owns no gold. Americans were promised they would be able to use cash and/or gold coin; they were banned from owning gold. Central banks around the world were promised USD would be pegged to $35 per ounce; this promise was broken in 1971. In 2005, Ben Bernanke said he could not see a housing bubble; the GFC arrived soon after. In 2017, Janet Yellen predicted we would not see a financial crisis “in our lifetimes”.

Fool me once. Fool me twice.

However, when the WuFlu arrived in America in 2020, the world faced yet another crisis. Lockdowns, mask mandates, and mail-in ballots all arrived just in time for the 2020 election, and Joe Biden received 81 million ballots……

Deception and lies are “par for the course” when it comes to the globalist agenda. However, with Klaus Schwab’s Young Global Leaders deployed to every corner of the globe, micro-managing every nation to conform with a vast array of new treaties spewing out from the UN, there is something they are all missing; something that could bring down their entirely corrupt, diseased temple; something that is completely out of their control:

$60 trillion is a lot of money. We are not sure how President Trump has come to this number, but it is very similar to another trillion dollar figure:

“Hidden dollars” is another term for dollars that sit offshore, free from US tax and regulation. From the humble beginnings of Siegmund Warburg’s first Eurodollar bond offering, it has now morphed into a $65 trillion beast.

Recall what Murray Rothbard observed with respect to the fiat currencies being forced onto the American colonies, starting with Massachusetts in 1690. It started an inflationary boom followed by a deflationary bust, as soon as credit began contracting. This is also what triggered the Great Depression.

Understanding this history begs the question: Are we witnessing the beginning of the biggest credit contraction in world history?

Are we looking at the collapse of the petrodollar complex?

By now, everyone knows about BRICS. It is also referred to as “de-dollarization”. If India can now buy its oil from Saudi Arabia without USD, what is the value of the USD in the transaction? ZERO! If there are zero dollars in the transaction, what fees can the City of London collect?

This is the first stage of the petrodollar standard under threat. If the USD is not being bought first before purchasing oil, then the demand for USD logically drops. This does not necessarily mean the dollar collapses overnight, but it does severely restrict the ability of the Federal Reserve to keep expanding their credit base, and print more dollars.

Stage 2 of the petrodollar complex requires that the dollar holdings of oil-producing nations purchase US Government bonds. One of the largest producers of oil today is Russia. Considering the happenings in Ukraine, will they purchase US Government bonds from Joe Biden’s Treasury? Furthermore, the Saudis now see their bond investments as a particularly large risk, especially with all this talk of “default”.

What is Saudi Arabia doing with all the money they have received from their bond sales?

Saudi Arabia’s wealth fund is diversifying their assets, which is always a smart move to reduce risk. President Trump also agrees with the LIV golf tour strategy:

What happened to the US military acting as an enforcer of the petrodollar standard?

We have seen a dramatic decrease in the value of US government bonds over the last year. This has put an enormous strain on banks, some of which have failed as a result; these include SVB and First Republic.

The American taxpayer is currently financing $33 trillion of public debt. Joe Biden’s “inflation reduction” strategy requires the nation to shoulder even more debt, possibly an extra $5 trillion this year alone. In order to raise this money, Joe Biden’s Treasury will need to sell more bonds into a market that everyone else, particularly the Saudis, are also sellers. This will mean dropping bond prices, which means interest rates must rise.

Like Stage 1 of the petrodollar standard, the bond market may not collapse, but what is unfolding will severely restrict the federal government’s ability to increase their debt levels.

Both Stage 1 and Stage 2 of the petrodollar standard have been handcuffed. As BRICS evolves, less and less dollars will be flowing through the City of London, which means they receive less fees and commissions. The CCP has a massive credit contraction on its hands, and Eurodollar banks, like Credit Suisse, are vaporizing in less than a week.

It sure looks like a horrible invisible enemy is trapped, with nowhere to go, and it is destroying itself in the process.

But if the petrodollar standard collapses, it will take down the entire Eurodollar complex with it. BRICS will continue to expand its dollar-free trading complex, and the Saudis (and other oil producing nations) may stop buying US government bonds altogether. While the Eurodollar’s fate may be sealed, is there any way to ensure its death does not take down the entire global economy with it?

A Brave Old World

We end this series by referring to the beginning of Part I. We played the interview with Ms. Jan Halper-Hayes on British television; an interview which President Trump and General Flynn re-posted.

A bankrupt corporation; the Treaty of 1871; plane loads of gold from the Vatican; and a declaration that America will not pay the UK any more money from the events that unfolded during the Civil War. All of this is intertwined with a court case involving an International Criminal Court prosecutor, Jack Smith.

What is most important now is not what has happened in the past, but what might happen in the future. The future is never certain, but the past can always act as a good reference point.

We have shown how the evolution of the Federal Reserve has led to the worldwide Eurodollar complex. Between $4 - $7 trillion a day of foreign exchange flows through the City of London, while only $400 billion of GDP is created. If the City of London Corporation were deprived of this FX flow, its role as the world’s financial center would collapse, and cost about 10% of UK’s GDP. Clearly, Ms. Halper-Hayes was providing a warning of how things might unfold for the UK in the future. The American people may no longer be holding up the value of a currency that the City of London is paid handsomely to facilitate and “exchange”.

The Treaty of 1871 showed how both international law and multinational corporations evolved. At the time, it was used to avert the Public Debt Clause in the 14th Amendment, and therefore catastrophic bond losses for investors like Otto von Bismarck, Gerson von Bleichroder, and the Rothschilds. Bleichroder’s tactics became a crash-course for wannabee hedge-funders, like George Soros.

Lastly, Ms. Halper-Hayes talks about an enormous amount of gold, on planes, paid for by the Pope. We’re not sure about the Vatican’s direct connection, but we do know that Pope Innocent XI financed William of Orange and his invasion of England. More importantly, we need to focus on the gold. While we don’t know the exact amount of gold, it certainly sounds like a lot. Currently, the US Treasury owns about 8,000 tonne of gold.⁴⁶

Whatever the case, what would President Trump’s intentions be with all of that gold, considering the entire monetary system of the world is controlled through the Federal Reserve, which openly states it does not own any gold?

Thomas Jefferson defeated the First Bank of the United States. Andrew Jackson defeated the Second Bank of the United States, and America’s gold supply then doubled in only a few years. This time around, the world is far more complex and intertwined. A collapse in the complexity of an economy must be met with a solution, so that the transition can be clean and swift.

In 1963, JFK’s Executive Order 11110 introduced Treasury certificates backed by silver. This would have potentially replaced the use of Federal Reserve Notes in circulation. He was assassinated in the same year.

Currently, the Federal Reserve is restricted in their ability to print dollars, and the federal government is restricted in their ability to increase debt levels. What if gold could be used in a similar fashion today, as JFK once intended to use silver? If so, Federal Reserve Notes would again have a competitor within the United States, and throughout the world. These would provide a competitor that would destroy the fiat temple the entire world is currently sitting on.

“We learn from history that we do not learn from history”

The End.