Originally posted by Astyanax
I'm busy now, won't be able to give this debate the attention it deserves until Tuesday or Wednesday next week. I hope it will continue until then.
It is wage rises that are the primary cause of inflation.
From this page we can see that even Dictionaries don't agree on the definition of inflation and economists continue to argue over its primary cause. Although it is generally agreed that economic inflation may be caused by either an increase in the money supply or a decrease in the quantity of goods.
Monetary inflation is actually a tax by which government - by expanding the money supply - transfers wealth from its people to itself. Indeed, inflation is perhaps the most destructive tax that can be imposed - but unfortunately it is the easiest one for a government to impose on its people. It also results in the transfer of enormous amounts of wealth from the hands of ordinary people to the hands of those speculators shrewd enough to take advantage of the price volatility inflation causes in the markets.
Today, our money is fiat (essentially costless for the government to produce) and not limited by our stock of gold. So how does the issuer of money, the central bank, know when it has produced too much money? The answer to this question is relatively straightforward: If the central bank oversupplies money, the purchasing power of money falls, or in other words, the money price of things rises. That is, inflated money will reveal itself when the prices of things in terms of money rise. So the central bank must monitor the behavior of prices as a way of detecting inflation. But over time, people have blurred the distinction between how inflation is measured with what inflation is. Indeed, today one often hears the word “inflation” used when what is meant is simply “price increase.”
Originally posted by NuTroll
well, i hate to push the same links again as I did in page one, but how about a non nutball site (or at the very least nutballs with certified diplomas and credentials)that asserts that the fed caused the depression
The "boom-bust" cycle is generated by monetary intervention in the market, specifically bank credit expansion to business.
Originally posted by Dae
OK, so what are the causes [of inflation] then for goodness sake! Perhaps its as simple as an increase in money stock...
Inflation is caused by the act of Central Banks issuing too much money...
But it was through a virtual monopoly of U.S. acceptance banking, achieved by the International Acceptance Bank Inc. and its affiliated units, that Warburg was able to get society to go to work for the Warburgs and their banking friends. Revisionist historian Murray Rothbard has examined the origins of the 1920s inflation that led to the collapse of 1929 and makes this pertinent observation:
While purchase of U.S. securities has received more publicity, bills bought were at least as important and indeed more important than discounts. Bills bought led the inflationary parade of Reserve credit in 1921 and 1922, were considerably more important than securities in the 1924 inflationary spurt, and equally important in the 1927 spurt. Furthermore, bills bought alone continued the inflationary stimulus in the fatal last half of 1928.13
What were these "bills bought" pinpointed by Rothbard as the key culprit of the 1929 depression? Bills bought were acceptances, and almost all were bankers acceptances.
Who created the acceptance market in the United States, largely unknown before 1920? Paul Warburg.
Who gained the lions' share of this acceptance business at artificially low subsidized rates? The International Acceptance Bank, Inc.
Who was the International Acceptance Bank, Inc? Its chairman was Paul Warburg, with Felix Warburg and James Paul Warburg as co-directors. However, a closer look at the make-up of the banks (see below page 95) suggests that it was a vehicle representing the financial élite of Wall Street.
Did the Warburgs and their Wall Street friends know where their financial policy would lead? In other words, did their financial policies of the 1920s have elements of deliberation? There exists a memorandum by Paul Warburg that clearly notes that banks had the capability to prevent inflation:
If the Government and the banks of the United States were helpless automatons, inflation, no doubt, would have to ensue. But it is insulting our banks to have the impression go out that they should not be capable of cooperating in some common plan of protection such, for instance, as keeping all cash reserves higher than required by the law, if indeed such a step should become advisable for the greater safety of the country.14
Consequently, Rothbard quite rightly concludes:
Surely, Warburg's leading role in the Federal Reserve System was not unconnected with his reaping the lion's share of benefits from its acceptance policy.15
Originally posted by NuTroll
from Wall Street and FDR, anthony C sutton. Can read it here
But it was through a virtual monopoly of U.S. acceptance banking...
...Warburg's leading role in the Federal Reserve System was not unconnected with his reaping the lion's share of benefits from its acceptance policy.15
Originally posted by Astyanax
[edit on 20-7-2006 by Astyanax]
Originally posted by Astyanax
That was a fast comeback, Dae. I'll give you the bit about the causes of inflation; as I said, I'm no economist. However, it doesn't mean the rest of your argument automatically follows.
The idea that inflation is a form of taxation is new to me. Could you explain how that works?
And while you're at it, could you confirm that you still think it's bankers (and not governments) that are causing all this naughty inflation? Because if inflation is taxation, it's governments that benefit, not bankers. Inflation is bad for banks in that it reduces the value of repaid loans.
but does nothing to support the argument that inequality creates economic cycles. I'll just have to take that one, Scottish-style, as 'not proved'.
By the way, there are still a lot more questions in my earlier posts waiting for your answers.
Von Mises is no nutball. A respectable economist whose political views are close to my own, he did not accuse central bankers of bad faith, merely of incompetence. He did not argue that the Fed deliberately caused the Depression, but that it promoted it accidentally through incompent monetary meddling. As you will see from my previous posts, I am more than willing to accept that.
Mind you, Mises held that all central bank intervention causes damage; he regarded it as the primary cause of boom-bust cycles. That's a controversial position in economics; plenty of (equally respectable) economists disagree with Mises.
Paul Warburg , who used the money to finance hitlers rise to power.
In November 1910, [Senator] Aldrich [of Rhode Island], Paul [Warburg], and four other experts sneaked off to discuss bank reform at a secret hideaway on Jekyll Island off the Georgia coast. With Democrats now in control of Congress and Progressives railing against Wall Street, the bankers had to travel incognito, lest they be accused of hatching a cabal.
As part of the elaborate charade, the conference participants pretended to be sportsmen, outfitting themselves as duck hunters.
What Chernow does not adequately explain is why such secrecy was necessary if a central bank was really such a great idea. We are told, in effect, that Warburg and others hatched a cabal to avoid being accused of hatching a cabal.
Because it was the product of a furtive conclave, and secrecy still surrounds many central bank decision-making activities, it is hardly surprising that there are so many dark suspicions and "banking conspiracy" theories involving the Federal Reserve Bank.
According to Chernow, Paul Warburg was the only person in America who understood how a central bank works. In 1912 and 1913, he drew up the basic plan for the Federal Reserve banking system, and he drafted the Federal Reserve Act. In December 1913 President Wilson signed the Act establishing the new central bank. If anyone can be called the father of the Federal Reserve Bank, the New York Times has rightly noted, it is Paul Warburg.
The new central bank's board of governors -- which for several years included Paul Warburg -- became top-heavy with political appointees whose policy of loose credit set the stage for the Great Depression. America's economic collapse of the 1930s can be traced to the Federal Reserve's operation by incompetents and self-serving hacks.
Our Bank is characterized by independence from institutional influences
there were reportedly 203,053 shares of privately owned Federal Reserve
stock, of which approximately 65% were owned by foreigners and approximately
35%(72,000 shares) were:
1. Rockefellers' National City Bank = 30,000 shares
2. Chase National = 6,000 shares (currently Chase Manhattan and owned by
3. The National Bank of Commerce = 21,000 shares (now known as Morgan
4. Morgans' First national Bank = 15,000 shares
Interestingly, the total shares owned by Rockefellers interests equal
36,000 shares and the total of Morgans' equals 36,000 shares.
Although the privately owned Federal Reserve Act of 1913 provided the names
of the owner banks be kept a secret, R.E. McMaster, publisher of the
newsletter" The Reaper" discovered, through confidential Swiss banking
connections, that the following banks have controlling interest in the
privately owned Federal Reserve
1. Rothschild Banks of London and Berlin
2. Lazard Brothers Bank of Paris
3. Israel Moses Sieff Banks of Italy
4. Warburg Bank of Hamburg, Germany and Amsterdam
5. Kuhn Loeb Bank of New York
6. Lehman Brothers Bank of New York
7. Goldman Sachs Bank of New York
8. Chase Manhattan Bank of New York (Controlled By Rockefellers)
The history of Lehman Brothers parallels the growth of the United States and its energetic drive toward prosperity and international prominence. What would evolve into a global financial entity began as a general store in the American South. Henry Lehman, an immigrant from Germany, opened his small shop in the city of Montgomery, Alabama in 1844. Six years later, he was joined by brothers Emanuel and Mayer, and they named the business Lehman Brothers.
During the vigorous economic expansion of the second half of the 19th century, Lehman Brothers broadened its expertise beyond commodities brokerage to merchant banking. Building a securities trading business, they became members of the New York Stock Exchange in 1887.
Setting the stage for future global growth, Jacob Schiff, a Kuhn, Loeb partner, led the Firm to establish investment-banking relationships in Europe and Japan.
(NOTE: A RELATIONSHIP BEGINS WITH KUHN, LOEB - another group that also owns interest in the FED)
At the turn of the century, Lehman Brothers was a founding financier of emerging retailers, including Sears, Roebuck & Company, F.W. Woolworth Company, May Department Stores Company, Gimbel Brothers, Inc. and R.H. Macy & Company.
Lehman Bros.' founder Henry Lehman started as an itinerant peddler in Alabama in 1844. Shortly after he arrived in the USA from Germany, he was joined by his younger brothers, Mayer and Emanuel.
The Lehmans grew wealthy as middlemen in the cotton trade. They stored Alabama cotton, often paying planters for it in hard currency and bartered goods, then sold the bales to other brokers or banks in New York and Liverpool, England.
The U.S. Census of 1860 lists Mayer Lehman as the owner of seven slaves — three males and four females — ranging in age from 5 to 50. "Some of these were household slaves. Others may have been used in the firm," notes a family history, The Lehmans: From Rimpar to the New World.
In the collection of Lehman family and business memorabilia at Columbia University is a photograph of a receipt for the purchase in 1854 of a 14-year-old slave girl named Martha. The buyer is listed as H. Lehman & Brother, the name of the firm before Emanuel's arrival.
The Columbia collection also contains a private, unpublished history of the Lehman Bros. investment bank that details the brothers' purchase of a male slave for $900 and their ownership of other slaves as early as 1850.
The Federal Reserve can in theory set up their own hedge funds, which reside in the Cayman Islands or the Antilles, and the Federal Reserve can actually mandate that those hedge funds purchase American Treasury bonds…, as if they are foreign investors that are doing that. But in the meantime this is all about money that is printed in America and is used to purchase American Treasury bonds. In this way America is actually financing itself - they are pretending that foreigners are still actually doing the financing.
At the close of research and investigation for this article, the writer must conclude that the influence of one-world foundations in the areas of social science, education and foreign policy has only accelerated; thereby accomplishing great strides due to minimal opposition from opposing foundations.
It must be remembered that it was the One-World cabal, (Rockefeller, Rothschild etc.), who pushed for the legalization of tax-exempt foundations, and were therefore the first to establish them. They were able to successfully get off to a head start. Even if a sizable foundation-sponsored opposition were to develop, it would be on a small scale and of rather insignificant result, compared to the massive efforts exerted by the One-World Cabal's mega-foundations.
The One World Cabal will always have more power in the world because of the devious strategies it is willing to employ in order to accumulate money and manipulate the rest of us with it. Clear cut, and decisive action is required immediately. Otherwise, it is this writer's opinion that we will very quickly lose the freedoms our Constitution guarantees for us. In short, our Constitution will be superceded by a One-World document, in fact it already has.
It is important for the reader to begin to think about what the world will be like if the One-Worlders succeed. Because this is a short article, all the possible ramifications and changes to your lifestyle cannot be covered. But one possible negative outcome could be a return to a feudal system with 98% of the people shackled to some major corporation in the same way that serfs lived by the whim of their overlord. This is just one of many possible scenarios, all equally black.
That being said, the ball is squarely in your court. You are part of a select few who have the education, intelligence and desire to even care about such things. In other words, it is up to you. You are part of the last classically educated free-thinking generation in this nation. If you wish to preserve your country for your grandchildren, then get busy. Write letters, form groups which will inform your family and friends. Buy shortwave radios, and create radio networks which will get together and decide how to create an informed voting block that will take back your country.
Editor's note: Navy Captain Gunther Russbacher is a 29 year veteran of the United States Intelligence Community, (Office of Naval Intelligence, attached to the Central Intelligence Agency). During all of that time he has operated as a deep black covert operative. In 1980 Captain Russbacher flew then vice-presidential candidate George Bush to a secret meeting near Paris in what has become known as "The October Surprise" scandal.
In 1989, Captain Russbacher violated direct orders and married, Rayelan Allan, an investigative researcher who was currently working to expose the October Surprise scandal. Captain Russbacher was arrested two days after their marriage and stayed incarcerated until December of 1993.
It is evident to all who are familiar with the Russbacher case that he was a political prisoner of the Bush administration. The following article was written, in spring of 1992, from his prison cell in the Jefferson City Correctional Center in Missouri.
Captain Russbacher has been called the "Company Banker". Because of this, he had to be knowledgeable about the banking system in the United States. Once he began studying the Federal Reserve, its origins and its global aspirations, he began to understand how three hundred families control the world. This article was written from memory, with a little help from friends at Langley Center.
Some gullible individuals, including gullible members
of the U.S. Congress, still think that Felix
Rohatyn is just another nasty banker. What they
don’t understand, or choose not to understand, is that
Rohatyn is an extension of the 1930s and 1940s Nazi
operations inside France, operations associated with a
London/Paris-centered faction of international finance,
known then and now as the Synarchist International.
Felix Rohatyn today faithfully represents the same
policies and the same outlook as the wartime French
Nazi collaborationists, associated with his own Lazard
Frères bank and its closely allied spawn, Banque
Worms. Rohatyn’s now-exposed current role in the total
dismantling and overseas “outsourcing” of the U.S. automobile-
manufacturing sector, with its embedded
machine-tool capacity so vital to America’s economic
national security, is thoroughly consistent with this pedigree.
In this scandalous assault on America’s once-great
industrial base, Rohatyn is acting, not as an American,
but as an agent of the Paris-centered financier networks
that are today’s successor generation of European
Synarchist bankers. Particularly since his tenure as U.S.
Ambassador to France, Felix Rohatyn has revived the
now-70-year-old Synarchist collaboration between his
own Lazard banking group and the Synarchist Worms
Group, today represented by Gerard Worms. Both
Rohatyn and Gerard Worms, in recent years, have been
co-directors of three major European financial entities:
Suez Groupe, Rothschild et Cie Banque, and The
Publicis Groupe, the world’s fourth-largest communications
firm. In Publicis Groupe, Worms and Rohatyn sit
with Michel David-Weill, the longtime managing director
During the late 1920s, the Paris branch of the Lazard
banking interests helped establish the Banque Worms,
on behalf of the French Synarchist industrialist
Hippolyte Worms. French intelligence documents from
the 1930s identified Hippolyte Worms as one of the original
12 members of the secret Synarchist Movement of
Empire, a group at the heart of the Nazi collaboration.
The Banque Worms, otherwise referred to as “the
Worms Group,” came to dominate the pro-Hitler Vichy
government of post-1940 France, maintaining throughout
its close ties to the London-New York-Paris Lazard
group. It was during the pre-Vichy period that Lazard
bankers Frederic Bloch-Laine and Andre Meyer, later
the mentor of Felix Rohatyn, were dominant behind-thescenes
figures in the banking apparatus that later
steered the Nazi collaborationist regime of Pétain, Laval,
and Darlan, through Banque Worms.
The U.S. intelligence service and diplomatic corps of
the 1930s and 1940s were fully aware of the pro-Hitler
treachery of the Banque Worms Group.
“This group should be regarded not
as Frenchmen, any more than their corresponding members
in Germany should be regarded as Germans, for the
interests of both groups are so intermingled as to be
indistinguishable; their whole interest is focussed upon
furtherance of their industrial and financial stakes.”
Drexel Biddle left no room for doubt that he was
equating the Banque Worms group with the worst of the
Nazi collaborationists. “On the one hand,” he explained,
“Pierre Pucheu (Interior), and Yves Bouthillier (National
Economy) were members of the Worms clique. Gerard
Bergeret (Secretary of State for Aviation) was included by
some among Pétain’s personal following, by others
among the Worms group. Excluding Bergeret, the
Secretaries of State were almost to a man associates of
the same clique.”
Scores of other reports, many of them obtained by
Executive Intelligence Review from the National Archives
of the United States, catalogued the in-depth collusion
between the Worms group and the Nazi regime in occupied
France. A series of three in-depth intelligence
dossiers traced the pedigree of the three main branches
of Lazard Brothers (New York, London, Paris), into
European wartime Synarchy.
Many will attempt to deny that Felix Rohatyn is of the
same Nazi pedigree as his Lazard and Banque Worms
predecessors of the 1930s and 1940s. But the evidence is
Through the early and mid-twentieth century, the three Lazard "Houses" in London, Paris and New York continued to grow their respective operations independently of each other, with the New York House coming under the leadership of André Meyer in 1944. Under Mr. Meyer and continuing with Felix Rohatyn, the New York House further developed its reputation as a preeminent mergers and acquisitions advisory firm. Michel David-Weill, a descendant of the founding families, joined Lazard Frères et Cie. in Paris in 1956, ascended to a leadership role within the French operations and later moved to the New York House, where he became senior partner in 1977.
Integrity. We take great pride in the tradition of integrity that we have developed over more than 150 years.
These interests have merged and consolidated in recent years, so that the control is much more concentrated. National Bank of Commerce is now Morgan Guaranty Trust Company. Lehman Brothers has merged with Kuhn, Loeb Company, First National Bank has merged with the National City Bank, and in the other eleven Federal Reserve Districts, these same shareholders indirectly own or control shares in those banks, with the other shares owned by the leading families in those areas who own or control the principal industries in these regions. The "local" families set up regional councils, on orders from New York, of such groups as the Council on Foreign Relations, The Trilateral Commission, and other instruments of control devised by their masters. They finance and control political developments in their area, name candidates, and are seldom successfully opposed in their plans. [...]
These developments following the passing of the Federal Reserve Act proved every one of the allegations Thomas Jefferson had made against a central bank in 1791: that the subscribers to the Federal Reserve Bank stock had formed a corporation, whose stock could be and was held by aliens; that this stock would be transmitted to a certain line of successors; that it would be placed beyond forfeiture and escheat; that they would receive a monopoly of banking, which was against the laws of monopoly; and that they now had the power to make laws, paramount to the laws of the states. No state legislature can countermand any of the laws laid down by the Federal Reserve Board of Governors for the benefit of their private stockholders. This board issues laws as to what the interest rate shall be, what the quantity of money shall be and what the price of money shall be. All of these powers abrogate the powers of the state legislatures and their responsibility to the citizens of those states. [...]
The ten largest bank holding companies in the United States are firmly in the hands of certain banking houses, all of which have branches in London. They are J.P. Morgan Company, Brown Brothers Harriman, Warburg, Kuhn Loeb and J. Henry Schroder. All of them maintain close relationships with the House of Rothschild, principally through the Rothschild control of international money markets through its manipulation of the price of gold. Each day, the world price of gold is set in the London office of N.M. Rothschild and Company. (Secrets of the Federal Reserve, Griffin, 1952)
J. Henry Schroder Banking Company played an important role behind the scenes of WW I. No historian has a reasonable explanation of how World War I started. Archduke Ferdinand was assassinated at Sarajevo by Gavril Princeps, Austria demanded an apology from Serbia, and Serbia sent the note of apology. Despite this, Austria declared war, and soon the other nations of Europe joined the fray. Once the war had gotten started, it was found that it wasn't easy to keep it going. The principal problem was that Germany was desperately short of food and coal, and without Germany, the war could not go on.
John Hamill in The Strange Career of Mr. Hoover explains how the problem was solved. He tells us that the initiative came from the German authorities in Belgium through their continuous relations with the American Relief Committee. Hamill points out "That is what the Belgian Relief Committee was organized for--to keep Germany in food." The Belgian Relief Commission was organized by Emile Francqui, director of a large Belgian bank, Societe Generale, and a London mining promoter, an American named Herbert Hoover, who had been associated with Francqui in a number of scandals which had become celebrated court cases, notably the Kaiping Coal Company scandal in China, said to have set off the Boxer Rebellion, which had as its goal the expulsion of all foreign businessmen from China. Hoover had also carried out a number of mining promotions in various parts of the world as a secret agent for the Rothschilds, and had been rewarded with a directorship in one of the principal Rothschild enterprises, the Rio Tinto Mines in Spain and Bolivia.
Hoover had been barred from dealing on the London Stock Exchange because of one judgement against him, and his associate, Stanley Rowe, had been sent to prison for ten years. With this background, Hoover was called an ideal choice for a career in humanitarian work. ( John Hamill, The Strange Career of Mr. Hoover, William Faro, New York, 1931 - Copies of Hamill's book were systematically located and destroyed by government agents, because it was published on the eve of President Hoover's re-election campaign).
Although his name is unknown in the United States, Emile Francqui was the guiding spirit behind Herbert Hoover's rise to fortune.
Francqui was a director with Hoover, in the Chinese Engineering and Mining Company (the Kaiping mines), through which Hoover transported 200,000 Chinese slave workers to the Congo to work Francqui's copper mines."
Originally posted by Astyanax
Thus economic cycles are self-correcting. If left to its own devices, however, the market is cruel; the cycles can be rapid, short-lived and brutal.
Business cycle theory matters simply because many people believe business cycles exist. This has not been a permanent belief. In the 19th century, business cycles were not thought of as cycles at all but rather as spells of "crises" interrupting the smooth development of the economy.
Seasonal cycles - within a year
Kitchin cycles - 3 years
Juglar cycles - 9-10 years
Kuznets cycles - 15-20 years
Kondratiev cycles - 48-60 years
If left to its own devices, however, the market is cruel; the cycles can be rapid, short-lived and brutal.