An International Conspiracy?

The Federal Reserve Act was passed Congress in 1913 and it established a privately owned central bank in the USA called The Federal Reserve. It had the power to issue currency and charge interest but it was only introduced after a very long campaign. 

One of the founders of the House of Rothchild, Mayer Anselm Rothschild said in 1790: 

“Permit me to issue and control the money of a nation, and I care not who makes its laws...”

President Andrew Jackson knew that a privately owned central bank would work against the interests of ordinary people and for the benefit of a wealthy few so he refused to renew the charter of an earlier version of the central bank. He was the subject of a unsuccessful assassination attempt in 1836

President Abraham Lincoln printed his own currency (called Greenbacks) after the banks tried to charge him exorbitant rates of interest during the Civil War. He used the money to defend the Union by financing the war effort against the South.  

The Times newspaper based in London printed: 

“If that mischievous financial policy, which had its origin in the North American Republic, should become indurated down to a fixture, then that Government will furnish its own money without cost. It will pay off debts and be without a debt. It will have all the money necessary to carry on its commerce. It will become prosperous beyond precedent in the history of the civilized governments of the world. The brains and the wealth of all coun­tries will go to North America. That govern­ment must be destroyed, or it will destroy every monarchy on the globe.” 

Soon after, the British Government began to actively support the South. 

Were the British Government controlled by the bankers? Did the bankers control the media?Was there an international conspiracy?

President Lincoln eventually led the Union forces to victory against the South but he was assassinated in 1865. His currency was withdrawn and Congress passed the National Banking Act which provided for privately owned banks able to issue their currency and charge whatever interest they liked

It has been estimated that President Lincoln's policies have saved the USA about $4 billion in interest payments alone. They were only implemented for a brief period of time and this gives an indication of how much the USA owes as a nation and how much interest has actually been paid. 

If President Lincoln's policies had continued, would the predictions made in The Times newspaper have come true? Would the USA be a debt-free nation? Would it be the most prosperous nation in the world?

The Bankers understood at the time and understand now that the only real threat to their power is sovereign govern­ments printing interest free and debt free money. It would break their power.

The National Banking Act led to The Federal Reserve Act being passed. Congress gave up Its power to create its own money and gave it to the Bankers who called themselves the Federal Reserve. They now had what they wanted, the power to control the government by controlling the creation of the money.

President John F Kennedy started to undermine the Federal Reserve and began the process of printing his own currency for the benefit of ordinary people. He was assassinated in 1963.

Three Presidents trying to reduce the power of the banks. Three assassination attempts, two dead Presidents. Is this a coincidence?  

The USA is only one country. Throughout the world, the vast majority of sovereign nations have their money controlled by privately owned central banks. Do these bankers work together? Is there an international conspiracy?

It 2003, it was reported that only seven nations remained without a privately owned central bank. They were named as Afghanistan, Iraq, Iran, North Korea, Sudan, Cuba and Libya. A USA led coalition invaded Iraq and Afghanistan soon after and also led military action against Libya in 2011. Who makes these decisions? Who will be next?

Abraham Lincoln and the Greenbacks

Mayer Anselm Rothschild was one of the founders of the well known House of Rothchild. In 1790 he said: 

“Permit me to issue and control the money of a nation, and I care not who makes its laws...”

In 1791, a central bank was established in the USA with a twenty year charter. It was called the First Bank of the USA but the charter was not renewed although a Second Bank of the USA was established in 1816. In 1832, President Andrew Jackson successfully ran his campaign for a second term using the slogan:

"Jackson and no bank"

In 1836, he was the subject of an unsuccessful assassination attempt but again the charter was not renewed.

The Civil War was fought between 1861 and1865 between the pro-slavery, Confederate South and the anti-slavery, Union North. President Abraham Lincoln led the union campaign and he attempted to raise money to finance the war from private banks based in the north. He was horrified and greatly distressed when bankers tried  to charge an interest rate of between 24% to 36%. President Lincoln was an honest man of great principle who loved his country and he refused to burden it with a massive debt which would be impossible to repay .

After much deliberation, he was advised to print his own currency to pay for the war effort and, with the backing of congress, he printed $400 million of treasury notes which had full legal tender. The notes were printed with green ink on the back and they became known as “Greenbacks”

President Lincoln soon recognized the great benefits of this course of action. He wrote:

“... (we) gave the people of this Republic the greatest blessing they have ever had – their own paper money to pay their own debts...”

The money was debt free and interest free and was used to finance the war effort by purchasing supplies, paying civil service employees and paying soldiers 

Soon after, The Times newspaper based in London printed: 

“If that mischievous financial policy, which had its origin in the North American Republic, should become indurated down to a fixture, then that Government will furnish its own money without cost. It will pay off debts and be without a debt. It will have all the money necessary to carry on its commerce. It will become prosperous beyond precedent in the history of the civilized governments of the world. The brains and the wealth of all coun­tries will go to North America. That govern­ment must be destroyed, or it will destroy every monarchy on the globe.”

The British Government began to actively support the Confederate South and tried to defeat the Union forces controlled by President Lincoln. They were stopped by two things. 

1.  President Lincoln knew that the British people would not support slavery so he issued the Emancipation Proclamation and declared that slavery was abolished in the USA. The British Government could not then openly support the Confederate South against the wishes of the British people.

2.  The Union forces were blockading southern ports to stop fresh supplies arriving from abroad. The Czar of Russia sent part of his Pacific fleet to the USA with orders to operate under the command of President Lincoln. They docked San Francisco and New York and acted as a deterrent to the Royal Navy and prevented them from breaking the blockade and helping the South.

The North won the war, the Union was preserved and the USA remained as one nation.

In 1865, President Lincoln said:

"I have two great enemies, the Southern Army in front of me, and the financial institutions in the rear. Of the two, the one in my rear is my greatest foe."

President Abraham Lincoln was assassinated soon after.

Congress repealed the Green­back Law and brought in the National Banking Act instead. The national banks became privately owned and able to issue interest bearing currency. The Greenbacks were removed from circulation as soon as it was possible.

In 1913, Congress passed the Federal Reserve Act which replaced the National Banking Act. It relinquished the power to create money (initially given by the Constitution of the USA) and handed it to a group of private bankers who called themselves the Federal Reserve. 

In 1963, President, John F. Kennedy signed Executive Order 1110 giving him the power to create his own currency. He was assassinated soon after

In 1972, the Treasury Department of the USA calculated that President Lincoln saved $4 billion dollars in interest payments by creating his own currency. Think about how much interest the government has actually paid

JFK and Executive Order 11110

The 40th anniversary of the assassination of President John F. Kennedy (often known as JFK) was commemorated on 22nd November 2013 and a large number of people throughout the world believe that he was the victim of a conspiracy.

President Kennedy was always a maverick and very keen to confront controversial issues. He was fully aware of how the Federal Reserve used its power against the interests of ordinary people and for the benefit of a few rich individuals. President Kennedy knew all about the problems faced by Abraham Lincoln during the Civil War, how corrupt banking corporations worked against him and how he bwas forced to print his own money called Greenbacks.  

On June 4th, 1963, President Kennedy signed a document, called Exec­utive Order 11110 which gave him the power to create his own money. He intended to use it for the benefit of ordinary people and he proceeded to issue more $4000,000,000 of cash  which was both interest free and debt free. It seems obvious that President Kennedy was seeking to under­mine the Federal Reserve. Was he considering a full repeal of the Federal Reserve Act to allow Congress to create its own money?

A few months later, in November 1963 the world was shocked to hear the news of the President's assassination. As the days passed, there was frantic speculation about why anyone would commit such an appalling crime and it didn't take long for people with financial knowledge to put the two and two together. 

The day day after the assassination, all the JFK issued bank notes were withdrawn from circulation. Did newly installed president, Lyndon B. Johnson, order this? Who was President Johnson afraid of? Was he part of the conspiracy? Either way, the money issued by JFK was destroyed and ordinary American people were not informed. 

JFK  was the first President since Abraham Lincoln with the courage to stand up to the large banking corporations and they were both assassinated. Is this a coincidence?

The first ever assassination attempt on a US President was on President Andrew Jackson in ?1836. It was unsuccessful but he was another Presidential opponent of the large banking corporations. Is this a coincidence too? 

Why would anybody assassinate a President? Why must everything be covered up? 
What are they trying to hide?

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Rising Gold Prices - An Overview

It is important to grasp the big picture of why gold is going up and the factors that are fueling its rise.

An Overview Since 1974

In 1971 President Richard Nixon ended US dollar convertibility to gold, bringing to an end the central role of gold in world currency systems. Three years later Congress legalized the ownership of gold by US citizens. Freed from the government-mandated price of $35 per ounce, the dollar and gold floated. In 1979 and 1980, investors' lack of confidence in the government's ability to restrict the expansion of the money supply resulted in panic buying of precious metals as a hedge against inflation. Gold prices soared, and in January 1980 the gold price hit a record of $850 per ounce. During the four-year period from 1976 to 1980, the price of gold had risen by more than 750%.

In the early 1980s the US Federal Reserve raised interest rates to restrict money supply growth. This policy achieved its purpose and by 1982 interest rates were declining and the fear of inflation had subsided. Investment capital responded by moving into financial assets from commodities including gold, and the market soared. After the historic highs of January 1980, the price of gold meandered in the $300-$400 range until hitting a low of $256 in February 2001. Then the bull market for gold returned, and by November 2009 the price had pushed up to $1,140 - a rise of 445%. To some investors, this suggests that history is repeating itself and gold is heading beyond $2,000 per ounce. To return to the 1980 high, when adjusted for inflation, the price would need to be over $2,000 now.

Today's Gold Market

The price of gold is set by the Gold Fixing, which is also known as the Gold Fix or London Gold Fixing. Twice a day by telephone, at 10:30 GMT and 15:00 GMT, five members of the London Gold Pool meet to settle contracts between members of the London bullion market. These settlements brokered by the Gold Fixing are widely recognized as the benchmark used to price gold and gold products throughout the world.

Let's examine some of the factors that influence the price of gold.

Gold Supply

There is an agency that tracks of all the gold in the world. Gold Fields Mineral Services Ltd (GFMS) is an independent, London-based consultancy and research company, dedicated to the study of the international gold and silver markets. GFMS publishes the annual Gold Survey, which features comprehensive analysis and statistics on gold supply and demand for over sixty countries. GFMS estimates that above-ground gold stocks represent a total volume of approximately 160,000 tonnes, of which over 60% has been mined since 1950. GFMS estimates that all the gold ever mined would form a cube measuring 20 yards (19 meters) on each side.

The production of new gold does not generally keep pace with inflation. The aboveground gold stock increases at a fairly constant rate of around 1.7% per year. During the last 50 years the largest annual increase was 2.1% and the smallest increase was 1.4%. This is less than the long-term historic rate of inflation, which is 4%.

The single largest holder of gold in the world is the United States government, with 8,133.5 tonnes. As of November 2009 this gold supply was worth approximately $330 billion. Other top holders of gold include Germany, the International Monetary Fund (IMF), Italy, France, SPDR Gold Shares, China, Switzerland, Japan, and the Netherlands.

The US Dollar

The price of gold is widely understood to inversely track the dollar. When the dollar falls the price of gold tends to rise. But there have been many cases when the price of gold did not keep up with changes in the value of the dollar, or even ran counter to it.

For example, when gold peaked in 1980, it reflected a prevalent fear of inflation in the wake of the 1979 oil shock and a U.S. monetary policy that lacked credibility. The case for gold as a hedge against inflation was persuasive. But today, the price of oil is up significantly in currencies other than the dollar. Even measured in euros, it has returned to the February save-haven peak. The weakness of the US dollar alone cannot explain the rise in price.

In early November, with the goal to support the United States' recovery from recession, the US Federal Reserve decided to maintain the massive stimulus measures and hold down US interest rates for "an extended period." With the Federal Reserve keeping rates low, a record US budget deficit continuing to rise, and central banks all over the world diversifying away from the dollar, gold may continue to be a very attractive choice. After all, the cost of borrowing money to invest in gold is next to nothing.

On the global markets there is a persistent lack of confidence in paper-based currencies. The weakening of the U.S. dollar has had a broad effect that reduces confidence in other currencies. And with central banks and government policymakers still entangled in their unprecedented fiscal and monetary interventions, this could continue for much longer.

The current strength of gold may be a reflection not of a specific response to the value of the US dollar, but rather the expression of the same underlying malaise with the lingering effects of the global financial crisis.

Supply and Demand

In recent years the decline in mine supply has been supplemented by several factors including sustained central bank gold sales. In the 1990s, central bankers were acting as a group to reduce their gold holdings, confident that the fiat currencies were a better store of value. Central bank reserve sales, which during the past decade have played a key role in keeping gold prices in check, have slowed recently. Now gold's attractions are re-emerging and bankers look set to be net buyers, which should help tighten the market.

In addition, scrap sales offset mining declines. In the first quarter, scrap sales rose sharply as gold re-visited its all-time high.

Industrial demand for gold is influenced by fabrication needs, which have dropped sharply since 1997. The global economic downturn, coupled with higher prices, further reduced the demand for jewelry, and supply-demand changes add little in terms of explaining bullion's rise.

Government Bonds

Ten-year U.S. treasury yields have rebounded from their end-of-2008 lows between 2% and 3.3%, but this does not necessarily represent widespread fear of inflation. There is little evidence that gold buying is the result of inflation concerns.

Speculation and ETFs

The 2008 surge in crude oil prices to US$147 per barrel suggests that a similar speculative bubble is forming in gold. However, one obvious difference between then and now is that when oil peaked, the forward market was anticipating a decline in prices. The gold market anticipates a rise, and forecasts a value of US$1,250 per ounce for June 2014. While ETFs were cited as a culprit for the rise in oil and are also playing a role in the gold market, their impact may be limited in the gold market.

Early in 2009 ETFs may have been active buyers, but their activity has leveled off since. There has been a sharp increase in long forward positions in gold at the Commodity Futures Trading Commission (CFTC) and net longs have reached a record.

Despite all the attention being paid to sales of gold by central banks and the fact that world gold holdings have experienced a broad decline, holdings in industrialized economies are on the rise as a share of total foreign reserves. And this trend was renewed in the first quarter.

China and Foreign Markets

China is emerging as an international economic force and its reported gold holdings are not necessarily reliable. This is particularly significant now that Chinese authorities can make their purchases on the domestic market. The People's Bank of China (BOC) holds about 1,054 metric tons of gold, which is about two percent of its $2.3 trillion in foreign currency reserves.

Retailers and jewelers are increasingly reluctant to buy at higher levels. In recent years India has been the world's biggest importer of gold, and in February 2008 imports stood at 23 tonnes. The figure fell to 1.8 tonnes in January 2009 and in February there was no gold imported. But in October 2009 on the back of rising demand India's gold imports surged by over 45% at 48 tonnes. India had imported 33 tonnes in the corresponding period during the previous year.

In September 2009 the International Monetary Fund (IMF) announced that it would sell 403.3 metric tons of gold to strengthen its finances and increase its ability to make loans to developing countries. In November IMF revealed that from Oct. 19 to Oct. 30 it sold 200 metric tons of gold to the Reserve Bank of India (RBI). The RBI paid $6.7 billion for the equivalent of about 8% of the world's annual mine production. As a percentage of foreign reserves, India's gold holdings are now higher than even China's. Many analysts believe India's purchase will spur other countries and investors to ramp up their gold purchases. Indeed, with 203.3 metric tons still on sale at the IMF, China may become the next big purchaser.

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