Chapter 38 - Quotes about Banks and Control

Phillip A. Benson, President of American bankers' Association 1939

"There is no more direct way to capture the control of a nation than through its credit system"

Rothschild Brothers of London 1863

"The few who understand the system, will either be so interested from it's profits or so dependant on it's favors, that there will be no opposition from that class."

United States budget for 1991 and 1992 part 7, page 10

"The Federal Reserve banks, while not part of the government,..."

Lord John Maynard Keynes 1919

"There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose." [380]

President Woodrow Wilson 1913

"A great industrial nation is controlled by it's system of credit. Our system of credit is concentrated in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated governments in the world-- no longer a government of free opinion, no longer a government by conviction and vote of the majority, but a government by the opinion and duress of small groups of dominant men." [381]

Congressman Louis T. McFadden 1932

"We have, in this country, one of the most corrupt institutions the world has ever known. I refer to the Federal Reserve Board. This evil institution has impoverished the people of the United States and has practically bankrupted our government. It has done this through the corrupt practices of the moneyed vultures who control it."

Lewis vs. United States 1982

"The regional Federal Reserve banks are not government agencies. ...but are independent, privately owned and locally controlled corporations." [382]

Oscar Callaway (1872 - 1947)

"In March, 1915, the J.P. Morgan interests, the steel, shipbuilding, and powder interest, and their subsidiary organizations, got together 12 men high up in the newspaper world and employed them to select the most influential newspapers in the United States and sufficient number of them to control generally the policy of the daily press. ... They found it was only necessary to purchase the control of 25 of the greatest papers. An agreement was reached; the policy of the papers was bought, to be paid for by the month; an editor was furnished for each paper to properly supervise and edit information regarding the questions of preparedness, militarism, financial policies, and other things of national and international nature considered vital to the interests of the purchasers." [383]

Friedrich August von Hayek

"To be controlled in our economic pursuits means to be controlled in everything." [384]

Pope Pius XI wrote in 1931

"This power becomes particularly irresistible when exercised by those who, because they hold and control money, are able also to govern credit and determine its allotment, for that reason supplying, so to speak, the lifeblood to the entire economic body, and grasping, as it were, in their hands the very soul of production, so that no one dare breathe against their will." [385]

Michael Hudson 2011

"Since the Renaissance, however, bankers have shifted their political support to democracies. This did not reflect egalitarian or liberal political convictions as such, but rather a desire for better security for their loans. As James Steuart explained in 1767, royal borrowings remained private affairs rather than truly public debts.[1] For a sovereign's debts to become binding upon the entire nation, elected representatives had to enact the taxes to pay their interest charges.

By giving taxpayers this voice in government, the Dutch and British democracies provided creditors with much safer claims for payment than did kings and princes whose debts died with them. But the recent debt protests from Iceland to Greece and Spain suggest that creditors are shifting their support away from democracies. They are demanding fiscal austerity and even privatization sell-offs.

This is turning international finance into a new mode of warfare. Its objective is the same as military conquest in times past: to appropriate land and mineral resources, communal infrastructure and extract tribute. In response, democracies are demanding referendums over whether to pay creditors by selling off the public domain and raising taxes to impose unemployment, falling wages and economic depression. The alternative is to write down debts or even annul them, and to re-assert regulatory control over the financial sector." [386]

Franklin D. Roosevelt 1933

"The real truth of the matter is, as you and I know, that a financial element in the large centers has owned the government of the U.S. since the days of Andrew Jackson." [390]

Thomas Jefferson 1816

"I hope we shall... crush in its birth the aristocracy of our moneyed corporations, which dare already to challenge our government to a trial of strength and bid defiance to the laws of our country." [387]

Peire Cardenal 1180-1272

"If some beggar steals a bridle

he'll be hung by a man who's stolen a horse.

There's no surer justice in the world than that

which makes the rich thief hang the poor one."

Winston Churchill 1920

"From the days of Spartacus-Wieshaupt to those of Karl Marx, and down to Trotsky, Bela Kuhn, Rosa Luxemburg, and Emma Goldman, this world conspiracy for the overthrow of civilization and for the reconstitution of society on the basis of arrested development, of envious malevolence, and impossible equality, has been steadily growing. This conspiracy played a definite recognizable role in the tragedy of the French revolution. It has been the mainspring of every subversive movement during the 19th century. And now at last this band of extraordinary personalities from the underworld of the great cities of Europe and America have gripped the Russian people by the hair of their head and have become the undisputed masters of that enormous empire." [388]

Henry Kissinger 1974

"Who controls the food supply controls the people; who controls the energy can control whole continents; who controls money can control the world." [May be false.]

Civil Servants' Year Book 1934

"Capital must protect itself in every way...Debts must be collected and loans and mortgages foreclosed as soon as possible. When through a process of law the common people have lost their homes, they will be more tractable and more easily governed by the strong arm of the law applied by the central power of leading financiers. People without homes will not quarrel with their leaders. This is well known among our principal men now engaged in forming an imperialism of capitalism to govern the world. By dividing the people we can get them to expend their energies in fighting over questions of no importance to us except as teachers of the common herd." [389]

Teddy Roosevelt 1912

"Political parties exist to secure responsible government and to execute the will of the people. From these great tasks both of the old parties have turned aside. Instead of instruments to promote the general welfare they have become the tools of corrupt interests, which use them impartially to serve their selfish purposes. Behind the ostensible government sits enthroned an invisible government owing no allegiance and acknowledging no responsibility to the people. To destroy this invisible government, to dissolve the unholy alliance between corrupt business and corrupt politics, is the first task of the statesmanship of the day."

Goldman Sachs

"Fast-forward to today. It's early June in Washington, D.C. Barack Obama, a popular young politician whose leading private campaign donor was an investment bank called Goldman Sachs - its employees paid some $981,000 to his campaign - sits in the White House. Having seamlessly navigated the political minefield of the bailout era, Goldman is once again back to its old business, scouting out loopholes in a new government-created market with the aid of a new set of alumni occupying key government jobs.

Gone are Hank Paulson and Neel Kashkari; in their place are Treasury chief of staff Mark Patterson and CFTC chief Gary Gensler, both former Goldmanites. (Gensler was the firm's co-head of finance.) And instead of credit derivatives or oil futures or mortgage-backed CDOs, the new game in town, the next bubble, is in carbon credits - a booming trillion dollar market that barely even exists yet, but will if the Democratic Party that it gave $4,452,585 to in the last election manages to push into existence a groundbreaking new commodities bubble, disguised as an "environmental plan," called cap-and-trade.

The new carbon credit market is a virtual repeat of the commodities-market casino that's been kind to Goldman, except it has one delicious new wrinkle: If the plan goes forward as expected, the rise in prices will be government-mandated. Goldman won't even have to rig the game. It will be rigged in advance.

Here's how it works: If the bill passes, there will be limits for coal plants, utilities, natural-gas distributors and numerous other industries on the amount of carbon emissions (a.k.a. greenhouse gases) they can produce per year. If the companies go over their allotment, they will be able to buy "allocations" or credits from other companies that have managed to produce fewer emissions. President Obama conservatively estimates that about $646 billion worth of carbon credits will be auctioned in the first seven years; one of his top economic aides speculates that the real number might be twice or even three times that amount.

The feature of this plan that has special appeal to speculators is that the "cap" on carbon will be continually lowered by the government, which means that carbon credits will become more and more scarce with each passing year. Which means that this is a brand new commodities market where the main commodity to be traded is guaranteed to rise in price over time. The volume of this new market will be upwards of a trillion dollars annually; for comparison's sake, the annual combined revenues of all electricity suppliers in the U.S. total $320 billion." [390] [Rolling Stone]


[380] Lord John Maynard Keynes (1883-1946), British economist.

[381] 1913, Chapter VIII, Monopoly or Opportunity? President of the United States from 1913 to 1921

[382] Lewis vs. United States, 680 F. 2d 1239 9th Circuit 1982

[383] Francis Oscar Callaway (1872 - 1947) A three-term U.S. Representative from Texas from 1911 to 1917.

[384] 1899 - 1992 Friedrich Hayek CH, born in Austria-Hungary as Friedrich August von Hayek was an Austrian, later British, economist and philosopher. Wikipedia

[385] Pope Pius XI 1931, in his encyclical letter Quadragesimo Anno

[386] Democracy and Debt 2011-12-03

[387]Thomas Jefferson to George Logan, 1816.

[388] Winston Churchill in the Illustrated Sunday Herald, 8 February 1920

[389] Taken from the Civil Servants' Year Book, "The Organizer" January 1934.

[390] Letter to Col. Edward Mandell House (21 November 1933); as quoted in F.D.R.: His Personal Letters, 1928-1945, edited by Elliott Roosevelt (New York: Duell, Sloan and Pearce, 1950), pg. 373

[390] www.rollingstone.com/politics/news/the-great-american-bubble-machine-20100405#ixzz2d4NEkf7C