How the international banking fraternity created the present credit crisis

Here’s an article by Chris Quigley that describes how the international banking fraternity created the present credit crisis – t.h.g.

The “Originate to Distribute” Basle Banking Model Created the Banking Crisis

Christopher M. Quigley, B.Sc., M.M.I.I., M.A.

In an attempt to comprehend the current “credit crisis” I decided to try to investigate its underlying causes. To my dismay I discovered that the situation did not come about by accident but was actually conceived and planned by the International Banking Fraternity in Basel, Switzerland, in 1998.

The tsunami of credit that burst onto the scene after this “Basle Accord” helped save America from a recession, enabled it to fund a war, sleep walked Europeans, politically into the Euro Zone and attempted to copper fasten the artificial state called the European Union. This crisis is no accident it was premeditated and internationally agreed.

If you don’t believe the pre-meditation involved please read the quote below from the Wall Street Journal, Nov. 27th. 2007:

“In 1998 the Basle Accord created the opportunity for regulatory arbitrage whereby banks could shift loans off their balance sheets. A new capital discipline that was designed to “improve” risk management led to a PARALLEL BANKING SYSTEM whose lack of transparency explains how the market started to seize up.

The “originate-to-distribute” model REDUCED THE INCENTIVE for banks to monitor the CREDIT QUALITY of the loans they pumped into collateralized-

loan-obligations and other structured vehicles, the rules failed to highlight contingent credit risk……With Basle II, the question is just how the markets will evolve over the next 20 years…. as the new accord will require banks to hold LESS CAPITAL”.

American history has shown that many of its great leaders saw the danger in granting banking institutions too much power over the destiny of a nation. The Basle I Accord and now Basle II indicate just how fundamentally the International Banking Groups have lost their moral compass and altered old standard banking rules. Through sleight of hand i.e. “off balance sheet accounting” they allowed the financial structure of the world to become totally unstable and risk prone. If one was cynical one would actually come to believe that in 1998 future failure was built into the matrix; failure which only the strongest and the most astute could survive.

The end result will be systematic institutional deflation on a worldwide basis. Even though cash is being pumped into the major institutions the multiples of “off balance sheet” credit are now historic, thus the corporate inflation has already occurred. What we will now experience going forward is dept collapse and with it falling mortgage issuance and restrictive commercial funding. Here in Ireland business activity has almost come to a standstill and everybody is holding their breath wondering what the next crisis will be. The only saving grace is that things are not much better in Italy, Germany, France or Spain and is actually much worse in Scotland, (where the bank of Scotland failed) England and Greece. This crisis is truly global.

As institutional deflation (due to collapsing systematic credit) and social inflation (due to the panic demand and circulation of currency) spreads around the globe those who are left holding excess negotiable resources will be in a very powerful position to soak up value assets for pennies on the dollar. Regular folk will not be able to participate in this bonanza because for them the banking credit system will be closed with nothing to offer but foreclosure and frustration. The majority will in a defensive survival mode while the privileged few will be in full scale acquisitive attack. Such was the case in the last depression. How history is repeating itself. Those who instigated the “off balance sheet” travesty knew exactly what they were doing. My advice is if you cannot beat them join them. Friends go to cash and the physical money metals as soon as you can. Contract your business and life-style expenses. Network and co-operate within a real community for the exchange of goods and services that sustain life. Before things get really bad become educated and aware. Form city and town based money circles based on the teachings of E.C. Riegel and learn how to issue community based, bearer-negotiable, split-barter, exchange-instruments of agreed value; otherwise known as money. (Most people do not fully understand that money, in essence, is a social contract based on human trust and mutual benefit). This “crisis event” is going to get much worse before it gets better folks. There will be short periods of reprieve but the reality of the problem is so serious and fundamental that it will take years, maybe decades (as in Japan), to work through, even with a R.T.C. (B) type solution. But perhaps it is true that “every cloud has a silver lining” and that “every problem bears within it the seeds of a greater opportunity”. Maybe finally after ninety five years the good people of the United States will awake from their media induced trance and realise that too much power was usurped by an elite on the 22nd. December 1913. Peaceful, proactive and constructive community must reassert its primacy over immoral, selfish and destructive institutionalism.

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7 responses to “How the international banking fraternity created the present credit crisis

  1. Pingback: Abuse of the Middle Class | Social Issues and Politics

  2. While most of your insights may be true, and it’s not the first time I have seen them, the power of your exposure of the conspiracy is emasculated by your own people’s spiritual abdication from their original christian spiritual heritage and liberties. The CFR and their cohorts are simply the spiritual wild beasts generations of Americans have let in by throwing away your spiritual protection. In favor of the idols of self and greed and love of money. So your offering can only lead to frustration because you fail to address the root issue which is that America has voluntarily disconnected for generations from the spiritual power which bought your original liberties.
    That is why you are losing them. It’s your own people’s choice and fault.
    You have become so blind that now you are reaping what you sowed. That principle also obviously applies to any other people which has committed the same spiritual suicide.

  3. I agree with almost all of this article except that the capital requirements will have to increase, and although these requirements have been extended as to implimentation, increased capital will be imposed sometime between 2012 and 2019 and will likely be deflationary.

  4. You made my day ! Another solid posting, i enjoy returning at your place and check on your latest posts.

  5. I really enjoyed reading your wisdom, obviously you know what are you talking about! Your site is so easy to navigate too, Ive bookmarked it in my favourites :-D

  6. THE COUNCIL ON FOREIGN RELATIONS AND TACK’S TACKLE SHOP

    This is a rather long article about the Council on Foreign Relations and how I believe that it is a “front organization” for international bankers. If you would rather download the artcle to read at a later date, here is a link to it:

    http://www.nycampaignforliberty.com/JohnWallace-Article-CouncilOnForeignRelations.pdf

    or

    http://www.nycampaignforliberty.com/JohnWallace-Article-CouncilOnForeignRelations.doc

    When I was growing up in the Inwood section of upper Manhattan, I remember when I was about 12 or 13 years old I had my first contact with discovering what a “front” was for another business. It was called Tack’s Tackle Shop. When it first opened, it looked like just another business. The guy in the store, Tack, was selling fishing rods, live bait and an array of fishing equipment. It didn’t take long before the kids in the neighborhood figured out that perhaps there was something else going on. The live bait in the window wasn’t alive anymore and local hoods and gangster type people seemed to be going in and out, particularly in the evenings and none of them looked like fishermen. It wasn’t long before the place was raided by the NYCPD and my friends and I all watched from across the street on Sherman Avenue as “Tack” came out in handcuffs along with a bunch of other men. We were later told that Tack’s Tackle Shop had actually been a front for an illegal gambling operation.

    A “front group” can be any entity that is set up to appear to be a legitimate independent organization, like Tack’s Tackle Shop, when it is actually controlled from behind the scenes by another organization or group of individuals. These front groups are often legitimate businesses, social or political organizations, professional groups, advocacy groups, research organizations, etc. Organized crime has used legitimate front organizations for many decades to launder their income from various illegal activities. Pharmaceutical companies have used front organizations to advocate for the drugs they manufacture. International terrorist organizations have their front groups here in the United States and as the evidence clearly shows, so do the international bankers.

    After researching the formation and activities of the Council on Foreign Relations (CFR) it appears that it may be a very sophisticated version of “Tack’s Tackle Shop.” The CFR was specifically set up to carry out the goals and objectives of international bankers so that the public positions taken by the CFR would appear to be independent positions that could not be directly connected to the international bankers who personally control and fund the CFR.

    The Council on Foreign Relations (CFR) was founded in 1921 by a very select group of international bankers, Wall Street lawyers and wealthy “old money” families sometimes called the Establishment or the Elites. Among the CFR’s founders were JP Morgan, John D. Rockefeller, “Colonel” Edward House (Marxist. globalist and close advisor to President Wilson), Paul Warburg (international banker), Otto Kahn and Jacob Schiff (both international investment bankers). The CFR’s stated purpose at that time was to improve the understanding of US foreign policy and international affairs through the exchange of ideas. The select membership has been gradually expanded over the years, now totaling around 3,800 and includes various professionals, corporate CEO’s, college presidents, media owners and reporters, high-ranking government officials and even high ranking US military officers.

    These same international bankers that started the CFR were instrumental in getting President Woodrow Wilson to sign the Federal Reserve Act into existence in 1913 that basically gave these international bankers the power to print money and control our entire economy. To show you the mind set of this core group, one of the founding CFR members, Edward House, authored a book in 1912 entitled “Philip Dru: Administrator” in which he laid out a fictionalized plan for the conquest of America. In the book, he told of a conspiracy by which a group of wealthy businessmen would gain control of both the Democratic and Republican parties and use them as instruments for the creation of a socialist world government.

    After signing the Federal Reserve Act into law, President Woodrow Wilson later admitted, “I am a most unhappy man. I have unwittingly ruined my country….(America is) no longer a government by free opinion, no longer a government by conviction and the vote of the majority, but a government by the opinion and duress of a small group of dominant men.” He was, of course, talking about the international bankers and the creation of the first great nationwide “front organization” called the Federal Reserve that was designed to directly benefit the international bankers at the expense of the American taxpayers.

    The late Carroll Quigley (mentor and advisor to President Clinton) who was a long term member of the CFR, wrote in his book “Tragedy & Hope”: “The CFR is the American Branch of a society….which believes that national boundaries should be obliterated, and a one-world rule established.”

    Rear Admiral Chester Ward, a former member of the CFR for 16 years, sounded the alarm about the real intent of the CFR and pointed out that there was two separate cliques within the CFR:

    1. The first and most powerful clique wants to bring about the surrender of the sovereignty and national independence of the United States.

    2. The second clique of international members is comprised of Wall Street international bankers and their key agents who want to receive a world banking monopoly from whatever power ends up in control of global government.

    Congressman John Rarick, a recipient of the Bronze Star and Purple Heart in World War II and a Democrat from Louisiana who once argued with his party over its increasing liberalism, said, “The CFR, dedicated to one-world government, financed by a number of the largest tax-exempt foundations, and wielding such power and influence over our lives in the areas of finance, business, labor, military, education, and mass communication-media, should be familiar to every American concerned with good government, and with preserving and defending the U.S. Constitution and our free-enterprise system. Yet, the nation’s right-to-know machinery, the news media, usually so aggressive in exposures to inform our people, remain conspicuously silent when it comes to the CFR, its members and their activities.”

    By using the CFR as a front organization to push their globalist agenda for America and the world, the “Establishment Elites and International Bankers” have managed to gain significant influence and power in key decision-making positions at the highest levels of our government. They can not only advocate their new world order ideas from within the government by using their CFR members in high government positions, but they can also use individual CFR members and research groups financed by their non-profit foundations to bring pressure from another direction. The international bankers use this process to implement the step by step decisions that will gradually convert the US from a sovereign nation to a subservient position in the new world order run by appointed bureaucrats selected by the international bankers. The CFR is being used much in the same manner as “Tack’s Tackle Shop” was used by an organized criminal group. The international bankers behind the CFR want to give the public the outward appearance of legitimacy in order that they can slowly accomplish their illegal objectives to usurp the US Constitution and the sovereignty of this country.

    Many of the most influential international bankers, Wall Street CEOs, politicians, academics and media owners and TV personalities are members of the CFR. They join the CFR for the same reasons that other people join similar business organizations: to make political or business contacts, to enjoy the prestige of being in the organization or to simply use their connections to make more money. The CFR in turn, uses the broad influence of these people and their organizations to slowly infiltrate their globalist ‘New World Order’ plans into American life. CFR members and their ghost writers author scholarly articles that are designed to specifically affect public opinion and future government decision making. These authors and researchers are oftentimes funded directly by one or more of the international bankers’ non-profit foundations. The CFR’s well paid academics expound on the wisdom of a united world and the CFR media members disseminate the message.

    In the 1940’s, President Roosevelt began bringing CFR members into the State Department and they have dominated it ever since. CFR members were instrumental in the creation of the United Nations. The American delegation to the San Francisco meeting that drafted the charter of the United Nations in 1949 included CFR members Nelson Rockefeller, John Foster Dulles, John Mc Cloy and the Secretary-General of the conference, Alger Hiss, who was later arrested as a spy for Russia. In all, the CFR sent at least forty-seven of its members in the United States delegation, effectively controlling the outcome.

    These same CFR members were also instrumental in using our country’s new membership in the United Nations to create the concepts of “limited wars” and “police actions” that were designed to circumvent the US Constitution and permit an administration to send our troops to war without a formal Declaration of War. It should also be pointed out that these two concepts benefit the international bankers and large corporations most because they allow these entities to make huge profits by providing financing and/or equipment and products to the enemies of our country during the conflict. It definitely did not benefit the US military men and women who were wounded or died in these conflicts. If a Declaration of War was declared, these same bankers and corporation CEO’s would be charged with treason for aiding the enemy during a time of war.

    James Warburg, a CFR member and son of CFR founder Paul Warburg testified before the Senate Foreign Relations Committee on February 17, 1950, defiantly telling the Senators that: “We shall have world government, whether or not you like it – by conquest or consent.”

    On November 25, 1959, the Council on Foreign Relations published “Study No. 7”, which openly declared its true purpose to bring about a New World Order through the manipulation of U.S. foreign policy and through international economic interdependence:

    · “…building a New International Order [which] must be responsive to world aspirations for peace, [and] for social and economic change…an international order …including states labeling themselves as ‘Socialist.’ ”

    The plan for the New World Order and the ultimate control of America by the international bankers, was clearly outlined once again in the April 1974 issue of “Foreign Affairs” the Council of Foreign Relations’ own publication, when CFR member and former Secretary of State Richard N. Gardner, wrote an article entitled “The Hard Road to World Order” in which he stated:

    · “In short, the house of world order will have to be built from the bottom up rather than from the top down. An end run around national sovereignty, eroding it piece by piece, will accomplish much more than the old fashioned assault…” one way to garner public support for new international treaties would be to propagandize world wide predicaments. If people are scared of terrorism, financial chaos or global warming, they will be willing to cede their national sovereignty, freedom and liberties for global authority.”

    Since the FDR administration, all transition teams and administrations have been full of CFR members. It didn’t matter whether they were liberal or conservative, Democrat or Republican. The Nixon administration had over 115 CFR members all in key Executive branch positions, most of who continued into the Ford years. Ronald Reagan wasn’t a CFR member, but his Vice President George HW Bush was a CFR member, and so were 28 members of his transition team alone. The Clinton administration had over 150 CFR members in key executive positions. George W. Bush is not a CFR member either, but his father and uncle are, his Vice President Dick Cheney is, and his administration is swarming with CFR members. The incoming Obama administration’s transition team is packed with CFR members and he is already looking to staff many of its administration’s key executive branch positions with CFR members.

    Did you vote for change in the 2008 Election? If you did, here’s a partial list of Mr. Obama’s transition team:

    Susan E. Rice – (CFR) former State Department Asst Secretary for African Affairs; Anthony Lake (CFR) – Bill Clinton’s first national Security advisor; Zbigniew Brzezinski – (CFR) and Trilateral Commission – Brzezinski is widely seen as the man who created Al Qaeda, and was involved in the Carter Administration plan to give arms, funding and training to the Mujahideen in Afghanistan; Richard Clarke (CFR) – Former chief counter-terrorism adviser on the U.S. National Security Council under Bush; Robert W. Kagan (CFR) argues that interventionism is a bipartisan affair that should be undertaken with the approval of our democratic allies; Dennis B. Ross (CFR) and Trilateral Commission – Served as the director for policy planning in the State Department under President George H. W. Bush and special Middle East coordinator under President Bill Clinton; Lawrence J. Korb (CFR) – Director of National Security Studies at the Council on Foreign Relations. Has criticized manor of the invasion of Iraq but has detailed plans to increase the manpower of the United States Army to fight the war on terror and to “spread liberal democratic values throughout the Middle East”; Bruce Reidel (CFR) – Former CIA analyst who wishes to expand the war on terror to fight Al Qaeda across the globe. Considered to be the reason behind Barack Obama’s Hawkish views on Pakistan and his Pro India leanings on Kashmir; Stephen E. Flynn (CFR) – Has been attributed with the idea for Obama’s much vaunted “Civilian Security Force”. Flynn has written: “The United States should roughly replicate the Federal Reserve model by creating a Federal Security Reserve System (FSRS) with a national board of governors, 10 regional Homeland Security Districts, and 92 local branches called Metropolitan Anti-Terrorism Committees”; and Madeline Albright (CFR) and Brookings – Currently serves on the Council on Foreign Relations Board of directors and was Former Secretary of State and US Ambassador to the United Nations under Clinton.

    Here’s the list of possible cabinet positions in the new administration: James B. Steinberg – CFR and the Trilateral Commission; Chuck Hagel (R) – (CFR); Robert M Gates – (CFR), Hillary Clinton – Husband Bill is a CFR member; Bill Richardson (CFR); Sen John Kerry (D) (CFR); Susan Rice (CFR); Robert Rubin (CFR); Lawrence Summers (CFR); Timothy Geithner (CFR); Paul A. Volcker (CFR); David L. Boren (CFR); Thomas H. Kean (CFR); Gary Hart (CFR), and Jane Harman (CFR) – Defense Department Special Counsel (1979).

    At time of writing of this article, President-elect Barack Obama’s has apparently selected Arizona Democratic Gov. Janet Napolitano as secretary of Homeland Security; Timothy Geithner, the current New York Federal Reserve head, as the Secretary of the Treasury; and Texas Democratic Gov. William Richardson as the Secretary of Commerce. Guess what? They are all members of the Council on Foreign Relations. So much for change!

    What do Dan Rather, Barbara Walters, Jim Lehrer, Marvin Kalb, Diane Sawyer, Andrea Mitchell and Tom Brokaw have in common? Answer: They are all members of the CFR.

    What does the NY Times, Washington Post, Wall Street journal, LA Times, Boston Globe, Baltomor Sun, Chicage Sun-Times, Houston Post, Minneapolis Star-Tribune, Arkansas Gazette, DesMoine Register and Tribune, Louisville Courier, the AP, UPI, Reuters, the Gannett Co, Walt Disney, ABC, CBS, NBC, Fox Networks, Clear Channel have in common: Answer: They are all members of the CFR.

    Freedom of the press has always been vital to the preservation of our American Republic. Ever since the early years of our country, it was the American “free press” that stood tall between us and the crooked international bankers, industrialists and corrupt government officials. While some of the major newspapers in the big cities were controlled by establishment types like William Randolph Hearst, who definitely influenced the content, most of the newspaper owners and reporters were independent and honorable people who chose to keep their integrity by pursuing the truth. Most local newspapers, radio stations, and later on TV stations, were owned locally.

    As they grow larger and eliminate their competition, major media corporations and international bankers are choosing what you will see on the nightly news while trying to trick you into believing it is unbiased reporting. The very news stories that you are fed by the mainstream media are manipulated to mirror the public relations campaigns of corporations, international bankers and even their favorite presidential candidates. If this is not the case then why, during the course of the 2008 election, was there no mention of the issues that were important to Americans: the threat by big government to our freedoms, liberties and sovereignty; the actions of the Federal Reserve and the issuance of fiat money; the drugging of 6 million of our nation’s youth; or amnesty for illegal aliens. Popular candidates like Ron Paul were either ignored by the media, excluded from most of the TV debates, or asked fewer questions than their CFR candidate counterparts. Of the top twenty media corporations in the U.S, 18 are members of the CFR.

    The CFR’s strategy is to use their members in the media to promote the need for world government in order to fight international threats like global warming. Both Obama and McCain made the environment a major issue in the campaign, but avoided mentioning the immigration issue. The CFR has long identified the worldwide environmental movement as a means to advance its agenda and has even suggested a global tax on all developed nations, payable to the United Nations of course. Most of the major media companies are now controlled by individuals or organizations that are members of the CFR, including the international bankers. One of the techniques used by the CFR and its membership has been to manipulate the news in such as way as to push their internationalist views on the rest of us.

    As the big media corporations keep merging into larger and more powerful companies, they will be able to control public opinion as never before. With their friends in congress and in key government agencies, all the international bankers and their CFR members need to do is advocate bringing back the “Fairness Doctrine” and regulating the internet and their control of the media will be complete.

    The average American might find the CFR’s powerful influence over America’s government very difficult to understand or believe, but never forget that the CFR was founded by international bankers for the express purpose of bringing about socialism and world government. It is the deliberate plan of these international bankers, who hide in the shadows and pull the strings of their marionettes, to gradually increase their influence and domination over America’s domestic and foreign affairs. CFR members have been in control of our government since the 1940’s. If CFR members are supposed to be the nation’s best and brightest in running the federal government and overseeing foreign affairs, why is the country in such a mess under their eighty year watch? The answer is: That’s the plan.

    The international bankers behind the Federal Reserve and the CFR are deliberately trying to usurp the US Constitution and gradually destroy our freedoms, liberties and sovereignty in the process. They are using the Federal Reserve System to bankrupt the country so we will be at their mercy. The deeper in debt our country goes, the richer and more powerful these international bankers become. If action is not taken to take back control of our nation’s currency from the criminals in the private international banking cartel and if the CFR’s influence over the highest levels of our federal government isn’t soon broken, America will be reduced to a third world nation controlled by a socialistic world government where our freedoms and liberties would have disappeared and our national sovereignty is but a fond memory.

    Many Americans believe that we may have reached a point where it no longer matters which party or candidate wins the election, because both candidates are already beholden to special interest groups and the winner will staff the high level executive positions with CFR members.

    The activities of the international bankers behind the Council on Foreign Relations and the Federal Reserve should be thoroughly investigated by an independent prosecutor. If criminal activities are uncovered, then those involved should be prosecuted under the Racketeer Influenced and Corrupt Organizations Act (RICO) as an ongoing criminal conspiracy. The American people must not give up their liberties for the false sense of security offered by the international bankers and their CFR puppets. The grip of these international criminals must be broken and the threats against our liberties, freedoms and our nation’s sovereignty must be eliminated. It can only be accomplished by a demand for action by a determined and educated American citizenry, as well as by an honest and thorough federal criminal investigation.

    I close this article with a quote from David Rockefeller, the former Chairman and the current Honorary Chairman of the Council on Foreign Relation and ask you to consider the implications of what he has said:

    “We are grateful to the Washington Post, The New York Times, Time Magazine and other great publications whose directors have attended our meetings and respected their promises of discretion for almost forty years… It would have been impossible for us to develop our plan for the world if we had been subjected to the lights of publicity during those years. But, the world is now more sophisticated and prepared to march towards a world government. The supranational sovereignty of an intellectual elite and world bankers is surely preferable to the national auto-determination practiced in past centuries.”

    – David Rockefeller, Bilderberg Meeting, June 1991 Baden, Germany

    By:

    JOHN W. WALLACE

    New York Campaign for Liberty

    http://www.NYCampaignForLiberty.com

  7. Dear Sir,

    I was thinking about all this “high-level” steering for a long time. And I know that the financial system is almost “unlinked” like the politicians to realize the real world. Liberalism on the markets were good as long as “shadow-moves” of credit exchanges work. What we see (just look out of your window) is a world focused on consumerism and egoism. To make money,no matter how.

    Finally I’m really concerned about the next crisis. Today the financial sector, tomorrow maybe the raw materials and raw commodities (rice, corn, grain ) sector nowdays also under siege by speculative transactions in buying and selling. Commodity prices rose up to 40%. We will face a real threat if one day these basic products will be denied to people in emergent and poor countries. Then we won’t fear our savings, but our life, because when these billions decide to throw the ball, the real 3rd World War will gloom…

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