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Bill Buckler: "Sovereign Debt Can Never Be Repaid"

Tyler Durden's picture


The following extract from Bill Buckler's latest Privateer Report hits at the heart of the current systemic collapse, and is thus presented without commentary.

Sovereign Debt Can NEVER Be Repaid

Wherever you live in the world, you are pushing a huge rock uphill. You and I live in a world whose money, markets and financial system is TOTALLY dependent on the debt issued by government. In any form of rational economic definition, a debt is a deferred and therefore an UNFINISHED transaction. It cannot be completed until the principal plus interest incurred in its issuance have been repaid in full - and in money which retains the purchasing power of that which was borrowed to incur the debt.

No government debt has ever been or can ever be repaid in full. This is especially the case when a government imposes a monopoly on what can be used as money by passing and enforcing “legal tender” laws. The US did this with the introduction of the Fed in 1913. Eventual default becomes an absolute certainty when government makes its own debt paper the ONLY “reserve” behind the “money” it alone can create. The US did this under President Nixon in 1971. The whole world went along with it because the US Dollar was the reserve currency and no government or people anywhere dared jettison it.

The result is the global financial quagmire we see everywhere we look.

If there is going to be any progress towards a REAL solution to this mess, a necessary step is the recognition that governments MUST live within their means. Any social entity which must monopolise the use of force as a pre-requisite for its existence CANNOT be allowed to use that force to augment its power. That is what government debt always does, until the day comes when it collapses in ruins.

Mure more in the full report


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Mon, 01/10/2011 - 18:17 | 865273 firstdivision
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Why no AH AMD chart for today's whoosh chart of the day?

(captcha sucks donkey balls. -18 * 31 = ? answer too large has to be less than 4 characters).

Mon, 01/10/2011 - 18:23 | 865293 swissinv
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how about -18*31^(1/2)*3.2000542314*0

Tue, 01/11/2011 - 02:02 | 866461 TruthInSunshine
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Sequester, scatter and secure your servers, and augment your security protocols re same.

There have been glitches on the site several times today, and it's either some sort of DoS attempt or a mutant/hybrid DoS attempt.


Tue, 01/11/2011 - 07:37 | 866685 Mentaliusanything
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I concur - had to change to wi-fi and a new computer to post.

Tyler you are releasing information earlier than MSN - they are not amused ;)))

Tue, 01/11/2011 - 03:27 | 866529 Chappaquiddick
Chappaquiddick's picture

Tyler - How many people have read this?  Just how deep is the message penetrating into society??  

Mon, 01/10/2011 - 18:22 | 865287 gwar5
gwar5's picture

Upcoming: scramble for gold reserve possession

Why? That's what the hell anybody would do 

Poker face: Only pretending not to think about it

Joker Face: What they are if they get it first



Mon, 01/10/2011 - 18:24 | 865298 walküre
walküre's picture

Silver is going apeshit next month.

Mon, 01/10/2011 - 18:28 | 865309 DoChenRollingBearing
DoChenRollingBearing's picture

We'll be watching...

I watch gold and silver EVERY day.  

When do they pop?  I don't know, but it sure seems like something BIG is coming SOON.

Mon, 01/10/2011 - 18:32 | 865323 cossack55
cossack55's picture

More like that old book/film "Something evil this way comes".

Mon, 01/10/2011 - 19:34 | 865523 Yancey Ward
Yancey Ward's picture

From Bill Shakespeare's screen adaptation of his novel, Macbeth.

Mon, 01/10/2011 - 23:36 | 866182 GoldmanSux
GoldmanSux's picture

Adapted from Sir Francis Bacon's private diary

Mon, 01/10/2011 - 18:37 | 865349 Sudden Debt
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I"ve installed the ticker in my background as a html and it's installed on the splash screen of my Iphone :)

Mon, 01/10/2011 - 18:40 | 865365 Sudden Debt
Sudden Debt's picture

With newsdays like today, the outcome is a given

Mon, 01/10/2011 - 20:19 | 865639 Red Neck Repugnicunt
Red Neck Repugnicunt's picture

Nice try, but you clearly do not see the whole picture as I do.


You are all throwing stones at Bernanke, but he is doing what he is supposed to do. It will work, this 'monetization', as people call is just a couple of transactions between the Fed and the Treasury. We will see Bernanke as Time's person of the year again and all you fools, we be holding your worthless gold and silver.


Prove me wrong, I dare you.

Mon, 01/10/2011 - 20:32 | 865663 akak
akak's picture

No, many here clearly do not see as you do --- because we have chosen to use our reason in combination with lessons and analogies drawn from history, and more importantly, to remove the blinders that so many continue to willingly wear after years of being subjected to relentless State propaganda and establishment-instilled conformity.

You, on the other hand, appear content to parrot the self-serving talking points and lies of the power elite --- or to have an agenda here which demands you to do so.

Mon, 01/10/2011 - 20:39 | 865692 Red Neck Repugnicunt
Red Neck Repugnicunt's picture

'You, on the other hand, appear content to parrot the self-serving talking points and lies of the power elite --- or to have an agenda here which demands you to do so.'


No you fail to see that this is all boomer nonsense. Your gold ship will be sunk and will have no life raft at the end. You think that they will let the system collapse? Impossible. They will find a way.

Mon, 01/10/2011 - 20:42 | 865700 akak
akak's picture

You think that they will let the system collapse? Impossible. They will find a way.

Funny how the Cult of the Omnipotent State has consistently, without fail, been discredited and demolished time and time again throughout history.  Or does Rome still rule in your alternate reality?

Mon, 01/10/2011 - 20:44 | 865714 Red Neck Repugnicunt
Red Neck Repugnicunt's picture

We are in a different paradigm, something that you cannot wrap your head around. This is the 21st nation state, nothing will change.

Mon, 01/10/2011 - 20:49 | 865718 akak
akak's picture

This is the 21st nation state, nothing will change.


Much has ALREADY changed --- and much more will yet.


EDIT: Another imposter troll here ---- this slimeball is not "RedNeckRepugnicant", but "RedNeckRepugnicunt".  But using the same avatar as the former.  Asshole.

Mon, 01/10/2011 - 20:50 | 865730 Red Neck Repugnicunt
Red Neck Repugnicunt's picture

So what? A couple trillion here, a couple trillion there, not a problem, the FED will ease everything back into place.


Keep pushing your agenda.


To Do:

1. Sell Gold & Silver (rally is over)

2.Get into $US Dollars & equities



Mon, 01/10/2011 - 20:56 | 865746 akak
akak's picture

Silly troll.

Tricks are for pricks.

Mon, 01/10/2011 - 23:27 | 866160 Oracle of Kypseli
Oracle of Kypseli's picture

Based on your posts, you hope that the FED will eventually manage to survive somehow. At the same time, it is obvious that you accept the fact that they are commiting fraud to achieve that.

You accept that the financial system must be saved even by fraudulent means.

Is this the world you want to live in? Do you have any integrity? Do you think this is justifiable? I doubt it. Tell us the truth on what motivates you to be posting these things.

Let's hear it

Tue, 01/11/2011 - 00:26 | 866289 essence
essence's picture

With regularity there appears a poster (some say a 'troll') in the comments
that fits your style to a tee.

I'm hard pressed to think it other than one person.

Nevertheless, rather than debating you, I say fine, go invest in treasuries,
30 year bonds no less (backed by the full faith & credit of the US gov'ment).

And go long in the stock market while you're at it. Suit yourself.

There's a line from an old  Bob Dylan song that comes to mind:

"and time will tell, just who has failed, an whose been left behind, when you go your way and I go mine"





Mon, 01/10/2011 - 21:02 | 865780 Bay of Pigs
Bay of Pigs's picture

"you clearly do not see the whole picture as I do".

Me, me, I, I...yeah, we "get it".  You are an arrogant prick.

Mon, 01/10/2011 - 21:13 | 865806 MiguelitoRaton
MiguelitoRaton's picture

RNR, I have met many an individual (almost always you and liberal) who, like you think that we have evolved, that this time is different, we are smarter now, the government is run by intelligent people who will solve the problems. They believe that the problems of the past empires/states is irrelevant.

What you fail to acknowledge is that while things and processes have evolved, human nature remains a constant. Man still longs for power, wealth (=power), and dominion (=power). In a democratic republic, at some point, politicians pander to major groups (corporations or unions) with money to influence elections. They promise the world to the people, and it results in a debt ponzi that has no option but to fail eventually.

Gold and silver, like human nature remain the same. Paper money always fails due to debt. This time will be no different. It may be in 2011, it may be in 2021, but at some point the music will stop and there will be far too few chairs to sit in.

How can one have faith in the government when everything they have given us has provne to fail under expenses and debts (or at least be unsustainable): social security, medicare, post office, etc. BTW, if you think that social security has not failed already consider that it was meant to be tax free and you get your money back when you retire. Then it became part of the general fund (no real money in accounts). Then it was taxed at 50%, then 85%. Soon I suspect it will be subject to means-testing. That is a fail. Rely on the government for your future at your peril. 

Mon, 01/10/2011 - 23:50 | 866215 StychoKiller
StychoKiller's picture

If they're so all-knowing, tell'em to catch a fart and paint it green! :>D

Tue, 01/11/2011 - 00:53 | 866348 JW n FL
JW n FL's picture

The conversation here is for children.. but the one shinning (like the sun) comment "If they're so all-knowing, tell'em to catch a fart and paint it green!"... fuck who thinks they are all knowing or why... love the comment though. I will be using that in my day to day as soon as I can squeeze it out, into conversation of course.

You get a new fav song of mine to enjoy...

Mon, 01/10/2011 - 18:34 | 865329 midtowng
midtowng's picture

The significance of this is that every nation will be burdened more and more with interest rate payments on that debt. Gradually, the interest rates will climb, as public services are gutted more and more, until finally there is nothing left except paying the banks and their wealthy creditors their yields for doing nothing. All the surplus capital will be sucked out of the economy until this version of "capitalism" collapses.

Mon, 01/10/2011 - 19:58 | 865592 Michael
Michael's picture

I think this is close to what it will look like in the end.

Rollover-1981- Aftermath of the Gold Scandal and World Economic Collapse

Tue, 01/11/2011 - 07:36 | 866684 AnAnonymous
AnAnonymous's picture

The significance of this is that every nation will be burdened more and more with interest rate payments on that debt. Gradually, the interest rates will climb,


Wrong. This opinion is one of people who consider the markets as ethereal entities, detached from physical reality, that operate under unvariant laws.

Which is blatantly wrong. Markets are physical people with various vested interests.

Just check the amount of money borrowed by the US, the size of debt and the interests rate paid on.

It is totally conform to the very fact that money has to be lent somewhere in a debt based economy (which is by the fact imposed by the agent of transaction named money, which is debt)

As money has to be lent somewhere, the least 'worse' (if you allow me that) place will always be offered preferential rates on any new amount of money that is lent.

Check back in ten years, twenty years to see that the service on the debt will match the capacity of this place to  pay, no matter the size of the debt and how much is borrowed. It will never go beyond because money must be lent.

Markets are not ethereal entities.

Tue, 01/11/2011 - 09:55 | 866856 stewie
stewie's picture

Your point is true for new debt.  But there is still a risk with existing debt.  While rates on new debt adjust to our ability to pay, existing debt is fixed to maturity and must be serviced.  Maybe there is some foresight, after all, from the US gvmt to migrate to shorter maturity?

Unless we see massive and global debt default, I think we're entering  period where rates will stay in a very narrow range indefinitely.  Gone are the days of wild swings from 2 to 10%.  We'll see the same effect with smaller swings as total debt increases.  The system is dynamic and the rate of change is more important than nominal value.  



Mon, 01/10/2011 - 18:38 | 865356 cunningtrader
cunningtrader's picture

Sigh...When will Americans wake up, and understand that the Rothschilds own their asses, and are doing so through indebtedness? I laugh when Tyler Durden wrings his hands about the USFED going broke printing money, that he says can't be funded, what a joke! The Rothschilds are funding the printing presses, and in doing so are swapping their otherwise worthless quadrillions of USD for hard assets. The Rothschilds were worth 4 billion in 1850, AND HAVE NEVER, EVER HAD A BAD YEAR. Take that 4 billion, index it to inflation, and hey presto it's 4 QUADRILLION today. Now add the other QUADRILLIONS they have made by printing and leasing money to the Governments of the world via their central banks for decades, and they can go on printing and in turn swapping dollars for assets via debt purchase, they are not worried about gold, silver, oil, because they are buying the producers of these commodities.

So what are they concerned about? A: Any part of the world they don't already own.

Mon, 01/10/2011 - 18:46 | 865379 Hollow_Point
Hollow_Point's picture

Reset Button

Mon, 01/10/2011 - 20:00 | 865599 Michael
Michael's picture

The Universal Bankruptcy Act of 2011 should take care of it.

Mon, 01/10/2011 - 18:52 | 865404 Art Vandelay
Art Vandelay's picture

Run along to dinner now, son; Mommy's got your mac and cheese ready, just the way you like it.

Mon, 01/10/2011 - 21:07 | 865791 cunningtrader
cunningtrader's picture

To all the Elitist supporting Trolls that are junking this post, we, the people know who really owns the NYFED/USFED:

Chart of who "owns" the Federal Reserve


Chart 1


Federal Reserve Directors: A Study of Corporate and Banking Influence

Published 1976

Chart 1 reveals the linear connection between the Rothschilds and the Bank of England, and the London banking houses which ultimately control the Federal Reserve Banks through their stockholdings of bank stock and their subsidiary firms in New York. The two principal Rothschild representatives in New York, J. P. Morgan Co., and Kuhn,Loeb & Co. were the firms which set up the Jekyll Island Conference at which the Federal Reserve Act was drafted, who directed the subsequent successful campaign to have the plan enacted into law by Congress, and who purchased the controlling amounts of stock in the Federal Reserve Bank of New York in 1914. These firms had their principal officers appointed to the Federal Reserve Board of Governors and the Federal Advisory Council in 1914. In 1914 a few families (blood or business related) owning controlling stock in existing banks (such as in New York City) caused those banks to purchase controlling shares in the Federal Reserve regional banks. Examination of the charts and text in the House Banking Committee Staff Report of August, 1976 and the current stockholders list of the 12 regional Federal Reserve Banks show this same family control.



N.M. Rothschild , London - Bank of England ______________________________________ | | | J. Henry Schroder | Banking | Corp. | | Brown, Shipley - Morgan Grenfell - Lazard - | & Company & Company Brothers | | | | | --------------------| -------| | | | | | | | | Alex Brown - Brown Bros. - Lord Mantagu - Morgan et Cie -- Lazard ---| & Son | Harriman Norman | Paris Bros | | | / | N.Y. | | | | | | | | Governor, Bank | J.P. Morgan Co -- Lazard ---| | of England / N.Y. Morgan Freres | | 1924-1938 / Guaranty Co. Paris | | / Morgan Stanley Co. | / | / | \Schroder Bank | / | Hamburg/Berlin | / Drexel & Company / | / Philadelphia / | / / | / Lord Airlie | / / | / M. M. Warburg Chmn J. Henry Schroder | | Hamburg --------- marr. Virginia F. Ryan | | | grand-daughter of Otto | | | Kahn of Kuhn Loeb Co. | | | | | | Lehman Brothers N.Y -------------- Kuhn Loeb Co. N. Y. | | -------------------------- µ | | | | 8 | | | | Lehman Brothers - Mont. Alabama Solomon Loeb Abraham Kuhn | | __|______________________|_________ Lehman-Stern, New Orleans Jacob Schiff/Theresa Loeb Nina Loeb/Paul Warburg ------------------------- | | | | | Mortimer Schiff James Paul Warburg _____________|_______________/ | | | | | | Mayer Lehman | Emmanuel Lehman \ | | | \ Herbert Lehman Irving Lehman \ | | | \ Arthur Lehman \ Phillip Lehman John Schiff/Edith Brevoort Baker / | Present Chairman Lehman Bros / Robert Owen Lehman Kuhn Loeb - Granddaughter of / | George F. Baker | / | | / | | / Lehman Bros Kuhn Loeb (1980) | / | | / Thomas Fortune Ryan | | | | | | Federal Reserve Bank Of New York | |||||||| | ______National City Bank N. Y. | | | | | National Bank of Commerce N.Y ---| | | \ | Hanover National Bank N.Y. \ | | \ | Chase National Bank N.Y. \ | | | | Shareholders - National City Bank - N.Y. | ----------------------------------------- | | / James Stillman / Elsie m. William Rockefeller / Isabel m. Percy Rockefeller / William Rockefeller Shareholders - National Bank of Commerce N. Y. J. P. Morgan ----------------------------------------------- M.T. Pyne Equitable Life - J.P. Morgan Percy Pyne Mutual Life - J.P. Morgan J.W. Sterling H.P. Davison - J. P. Morgan NY Trust/NY Edison Mary W. Harriman Shearman & Sterling A.D. Jiullard - North British Merc. Insurance | Jacob Schiff | Thomas F. Ryan | Paul Warburg | Levi P. Morton - Guaranty Trust - J. P. Morgan | | Shareholders - First National Bank of N.Y. ------------------------------------------- J.P. Morgan George F. Baker George F. Baker Jr. Edith Brevoort Baker US Congress - 1946-64 | | | | | Shareholders - Hanover National Bank N.Y. ------------------------------------------ James Stillman William Rockefeller | | | | | Shareholders - Chase National Bank N.Y. --------------------------------------- George F. Baker


Chart 2


Federal Reserve Directors: A Study of Corporate and Banking Influence

- Published 1983

The J. Henry Schroder Banking Company chart encompasses the entire history of the twentieth century, embracing as it does the program (Belgium Relief Commission) which provisioned Germany from 1915-1918 and dissuaded Germany from seeking peace in 1916; financing Hitler in 1933 so as to make a Second World War possible; backing the Presidential campaign of Herbert Hoover ; and even at the present time, having two of its major executives of its subsidiary firm, Bechtel Corporation serving as Secretary of Defense and Secretary of State in the Reagan Administration.

The head of the Bank of England since 1973, Sir Gordon Richardson, Governor of the Bank of England (controlled by the House of Rothschild) was chairman of J. Henry Schroder Wagg and Company of London from 1963-72, and director of J. Henry Schroder,New York and Schroder Banking Corporation,New York,as well as Lloyd's Bank of London, and Rolls Royce. He maintains a residence on Sutton Place in New York City, and as head of "The London Connection," can be said to be the single most influential banker in the world.



J. Henry Schroder ----------------- | | | Baron Rudolph Von Schroder Hamburg - 1858 - 1934 | | | Baron Bruno Von Schroder Hamburg - 1867 - 1940 F. C. Tiarks | 1874-1952 | | | marr. Emma Franziska | (Hamburg) Helmut B. Schroder J. Henry Schroder 1902 | Dir. Bank of England | Dir. Anglo-Iranian | Oil Company J. Henry Schroder Banking Company N.Y. | | J. Henry Schroder Trust Company N.Y. | | | ___________________|____________________ | | Allen Dulles John Foster Dulles Sullivan & Cromwell Sullivan & Cromwell Director - CIA U. S. Secretary of State Rockefeller Foundation Prentiss Gray ------------ Belgian Relief Comm. Lord Airlie Chief Marine Transportation ----------- US Food Administration WW I Chairman; Virgina Fortune Manati Sugar Co. American & Ryan daughter of Otto Kahn British Continental Corp. of Kuhn,Loeb Co. | | | | M. E. Rionda | ------------ | Pres. Cuba Cane Sugar Co. | Manati Sugar Co. many other | sugar companies. _______| | | | | G. A. Zabriskie | --------------- | Emile Francoui Chmn U.S. Sugar Equalization | -------------- Board 1917-18; Pres Empire | Belgian Relief Comm. Kai Biscuit Co., Columbia Baking | Ping Coal Mines, Tientsin Co. , Southern Baking Co. | Railroad,Congo Copper, La | Banque Nationale de Belgique Suite 2000 42 Broadway | N. Y | __________________________|___________________________|_ | | | | | | Edgar Richard Julius H. Barnes Herbert Hoover ------------- ---------------- -------------- Belgium Relief Comm Belgium Relief Comm Chmn Belgium Relief Com Amer Relief Comm Pres Grain Corp. U.S. Food Admin U.S. Food Admin U.S. Food Admin Sec of Commerce 1924-28 1918-24, Hazeltine Corp. 1917-18, C.B Pitney Kaiping Coal Mines | Bowes Corp, Manati Congo Copper, President | Sugar Corp. U.S. 1928-32 | | | John Lowery Simpson ------------------- Sacramento,Calif Belgium Relief | Comm. U. S. Food Administration Baron Kurt Von Schroder Prentiss Gray Co. J. Henry Schroder ----------------------- Trust, Schroder-Rockefeller, Chmn Schroder Banking Corp. J.H. Stein Fin Comm, Bechtel International Bankhaus (Hitler's personal bank Co. Bechtel Co. (Casper Weinberger account) served on board of all Sec of Defense, George P. Schultz German subsidiaries of ITT . Bank Sec of State (Reagan Admin). for International Settlements, | SS Senior Group Leader,Himmler's | Circle of Friends (Nazi Fund), | Deutsche Reichsbank,president | | Schroder-Rockefeller & Co. , N.Y. --------------------------------- Avery Rockefeller, J. Henry Schroder Banking Corp., Bechtel Co., Bechtel International Co. , Canadian Bechtel Company. | | | | Gordon Richardson ----------------- Governor, Bank of England 1973-PRESENT C.B. of J. Henry Schroder N.Y. Schroder Banking Co., New York, Lloyds Bank Rolls Royce


Chart 3


Federal Reserve Directors: A Study of Corporate and Banking Influence

- Published 1976

The David Rockefeller chart shows the link between the Federal Reserve Bank of New York,Standard Oil of Indiana,General Motors and Allied Chemical Corportion (Eugene Meyer family) and Equitable Life (J. P. Morgan).



DAVID ROCKEFELLER ---------------------------- Chairman of the Board Chase Manhattan Corp | | ______|_______________________ Chase Manhattan Corp. | Officer & Director Interlocks|--------------------- ------|----------------------- | | | Private Investment Co. for America Allied Chemicals Corp. | | Firestone Tire & Rubber Company General Motors | | Orion Multinational Services Ltd. Rockefeller Family & Associates | | ASARCO. Inc Chrysler Corp. | | Southern Peru Copper Corp. Intl' Basic Economy Corp. | | Industrial Minerva Mexico S.A. R.H. Macy & Co. | | Continental Corp. Selected Risk Investments S.A. | | Honeywell Inc. Omega Fund, Inc. | | Northwest Airlines, Inc. Squibb Corporation | | Northwestern Bell Telephone Co. Olin Foundation | | Minnesota Mining & Mfg Co (3M) Mutual Benefit Life Ins. Co. of NJ | | American Express Co. AT & T | | Hewlett Packard Pacific Northwestern Bell Co. | | FMC Corporation BeachviLime Ltd. | | Utah Intl' Inc. Eveleth Expansion Company | | Exxon Corporation Fidelity Union Bancorporation | | International Nickel/Canada Cypress Woods Corporation | | Federated Capital Corporation Intl' Minerals & Chemical Corp. | | Equitable Life Assurance Soc U.S. Burlington Industries | | Federated Dept Stores Wachovia Corporation | | General Electric Jefferson Pilot Corporation | | Scott Paper Co. R. J. Reynolds Industries Inc. | | American Petroleum Institute United States Steel Corp. | | Richardson Merril Inc. Metropolitan Life Insurance Co. | | May Department Stores Co. Norton-Simon Inc. | | Sperry Rand Corporation Stone-Webster Inc. | | San Salvador Development Company Standard Oil of Indiana


Chart 4


Federal Reserve Directors: A Study of Corporate and Banking Influence

- Published 1976

This chart shows the interlocks between the Federal Reserve Bank of New York J. Henry Schroder Banking Corp., J. Henry Schroder Trust Co., Rockefeller Center, Inc., Equitable Life Assurance Society ( J.P. Morgan), and the Federal Reserve Bank of Boston.



Alan Pifer, President Carnegie Corporation of New York ---------------------- | | ---------------------- Carnegie Corporation Trustee Interlocks -------------------------- ---------------------- | | | Rockefeller Center, Inc J. Henry Schroder Trust Company | | The Cabot Corporation Paul Revere Investors, Inc. | | Federal Reserve Bank of Boston Qualpeco, Inc. | Owens Corning Fiberglas | New England Telephone Co. | Fisher Scientific Company | Mellon National Corporation | Equitable Life Assurance Society | Twentieth Century Fox Corporation | J. Henry Schroder Banking Corporation


Chart 5


Federal Reserve Directors: A Study of Corporate and Banking Influence

- Published 1976

This chart shows the link between the Federal Reserve Bank of New York, Brown Brothers Harriman,Sun Life Assurance Co. (N.M. Rothschild and Sons), and the Rockefeller Foundation.



Maurice F. Granville Chairman of The Board Texaco Incorporated ---------------------- | | Texaco Officer & Director Interlocks ---------------- Liggett & Myers, Inc. ------------------------------------ | | | | | L Arabian American Oil Company St John d'el Ray Mining Co. Ltd. O | | N Brown Brothers Harriman & Co. National Steel Corporation D | | O Brown Harriman & Intl' Banks Ltd. Massey-Ferguson Ltd. N | | American Express Mutual Life Insurance Co. | | N. American Express Intl' Banking Corp. Mass Mutual Income Investors Inc. M. | | Anaconda United Services Life Ins. Co. R | | O Rockefeller Foundation Fairchild Industries T | | H Owens-Corning Fiberglas Blount, Inc. S | | C National City Bank (Cleveland) William Wrigley Jr. Co H | | I Sun Life Assurance Co. National Blvd. Bank of Chicago L | | D General Reinsurance Lykes Youngstown Corporation | | General Electric (NBC) Inmount Corporation

** Source: Federal Reserve Directors: A Study of Corporate and Banking Influence. Staff Report,Committee on Banking,Currency and Housing, House of Representatives, 94th Congress, 2nd Session, August 1976.

Mon, 01/10/2011 - 21:09 | 865796 cunningtrader
cunningtrader's picture

Damn, looks like chart got mangled, here is the link:

Tue, 01/11/2011 - 00:33 | 866304 DoChenRollingBearing
DoChenRollingBearing's picture


It is hard to have any confidence in one item I read on the 'Net lately, but the writer claimed the Rothschilds are worth approx. $500 TRILLION.

I suppose (if true) that would mean they are FOFOA's "Giants".

Tue, 01/11/2011 - 01:26 | 866396 essence
essence's picture

5 years ago I regarded posts such as yours as 'out there',
tin hat conspiriacy stuff.

Then came 2008, and TARP (as in, twice voted on...each time the public was wildly against it.... and yet it passed). That was surely a WTF, rubicon moment for me.

It was as if there was this unseen power behind the scenes controlling things.
A force that said to  congress.... "your first TARP vote wasn't 'right'...

DON'T FORGET WHO OWNS YOU go back and vote again till you get it right".


Everything I've read and observed since in the US and Europe merely corroborates

No matter what... in the end we find that the politicians ALWAYS move to
save the ultra wealthy from taking the slightest haircut on their equity
in the big banks and the outstanding bonds.

We find the US and EU central banks backing the big banks without fail.
I mean... completely, implicitly, without fail. Support the big banks.... and the
hell with everything/everyone else.

We've seen politicans such as Obama campaign as one thing, and yet once
elected turn out to be this 'manchurian candidate' serving Dubaya's 3rd term.

In sciences such as Astro-Physics you have folks who observe and postulate
based on prior knowledge and their observations. And so it goes with
current economics and politics.

Educating myself and observating the politics and the economy in action lead me to a belief in things such as banking cabals. Banking families. The insidious nature of the Fed.

Think about it...the power to create money from nothing!

In fact, a government given monopoly on the creation of money.
And the world's reserve currency to boot.
All without any effective auditing.
With Congress, the President and Regulators giving cover.

What a scam, what a crime.

Exactly who controls the Fed?
Why does Jamie Dimon sit on the NY Fed Board? Isn't that an outrageous
conflict of interest.

Why is the Fed setting fiscal policy for the US States and why aren't they
fully AUDITED by an impeciably impartial independent enity each and every year?

And why the hell hasn't there been a Gold audit since the Eisenhower
administration (and even that one was half-assed).







Tue, 01/11/2011 - 10:05 | 866883 stewie
stewie's picture

Incredible isn't it?  

I wonder how they have managed to avoid hardship that long...

Mon, 01/10/2011 - 23:34 | 866176 Oracle of Kypseli
Oracle of Kypseli's picture


If the Rothchilds own Americans they also own everyone else including you. Where are you from? 

Since your are awaken, what have you done to counter? Can you please let the Americans know what to do?

Tue, 01/11/2011 - 10:07 | 866894 stewie
stewie's picture

" Can you please let the Americans know what to do?"

Ron Paul has already done so. Have you listened with your vote?  

Mon, 01/10/2011 - 18:55 | 865416 lemonobrien
lemonobrien's picture

If they have all that money, why don't they already own everything?

Mon, 01/10/2011 - 18:59 | 865427 atomicwasted
atomicwasted's picture

You haven't heard of the Pentavirate?  The Gettys, the Rothschilds, the Queen, and Colonel Sanders before he went tits up?

Mon, 01/10/2011 - 19:50 | 865569 MaxSmart
MaxSmart's picture

Oh how I hated the Colonel, with his wee beady eyes and that smug look on his face.

Tue, 01/11/2011 - 03:45 | 866541 sushi
sushi's picture

The Colonel is not dead.

He is just roosting.

Mon, 01/10/2011 - 19:01 | 865433 cunningtrader
cunningtrader's picture

They mostly do. Any war that comes along, they make more, because their industrial assets supply and fund all sides lol.

Tue, 01/11/2011 - 00:58 | 866352 JW n FL
JW n FL's picture
by lemonobrien
on Mon, 01/10/2011 - 17:55


If they have all that money, why don't they already own everything?


They own feed, seeds and fertalizer... that is everything...

Mon, 01/10/2011 - 18:58 | 865426 cunningtrader
cunningtrader's picture

Ha ha, I have obviously hit a raw nerve or two already, have been flagged as junk twice already.... and I thought this forum was an elitist free zone...hmmmm

Mon, 01/10/2011 - 19:01 | 865431 Dr. Porkchop
Dr. Porkchop's picture

I think that any American who has ever rolled over their payday loans would understand quite easily the debt situation, if it were explained to them.

Mon, 01/10/2011 - 19:01 | 865432 innsbrooklad
innsbrooklad's picture

Dare I say, since when is this a monumental discovery.

I have a 1911 CHinese Railway Bond secured by gold hanging on my wall. We sued China a few years back and they told us to take a hike.

Reason? That debt was assumed by another government, not Mao's!!!!

Ever see " Seven Days in May "??????

Mon, 01/10/2011 - 20:31 | 865672 Privateer
Privateer's picture

You're right, this is not a monumental discovery.  In fact, it's not a discovery at all.  I think the meat of the argument was presented in the section which precedes the one Tyler chose to quote.


You can read that here



Mon, 01/10/2011 - 19:04 | 865442 Fix It Again Timmy
Fix It Again Timmy's picture

On one hand, when interest rates hit 11% - all US revenues will be used to pay interest on the debt - $0.00 for budget items.  On the other hand, our politicians don't see this as a problem - what am I missing?

Mon, 01/10/2011 - 19:07 | 865451 cunningtrader
cunningtrader's picture

If and when interest rates go up, the Rothschilds win yet again, as their asset purchases via debt swaps, increase in value at least in monetary terms...

Mon, 01/10/2011 - 19:11 | 865462 wjkins
wjkins's picture

Ha.. didn't nobody tell timmy to buy the dips.They could make enough money in no time to pay off the debt.

Mon, 01/10/2011 - 19:11 | 865463 Fix It Again Timmy
Fix It Again Timmy's picture

The Rothchilds must carefully groom their gene pool, anyone feckless or reckless obviously hasn't taken the reins...

Mon, 01/10/2011 - 21:00 | 865768 Ahmeexnal
Ahmeexnal's picture

They haven't. Inbreeding is causing them some serious problems.

Mon, 01/10/2011 - 19:14 | 865467 Rainman
Rainman's picture

edit: sovereign debt cannot be fully repaid. Central plannings hasn't yet thought to create a World Bond where they can dump all this multi-currency shitpaper and securitize it . Give them time.

Mon, 01/10/2011 - 19:17 | 865475 Jerry Maguire
Jerry Maguire's picture

It cannot be repaid.  It was never intended to be repaid.  That's the whole idea.

It's a messed up system, but not as messed up as those Ellen Brown people.

And see generally:


Mon, 01/10/2011 - 20:22 | 865651 Pez
Pez's picture

Yup also need to watch the free movie, "Secrets of OZ" by Bill Still. Just Google.

1700's = The private banker's f'd the US.

1800's = The private banker's f'd the US.

1900's = The private banker's f'd the US.

2000's = Guess what?


Mon, 01/10/2011 - 20:22 | 865652 Pez
Pez's picture

Yup also need to watch the free movie, "Secrets of OZ" by Bill Still. Just Google.

1700's = The private banker's f'd the US.

1800's = The private banker's f'd the US.

1900's = The private banker's f'd the US.

2000's = Guess what?


Mon, 01/10/2011 - 19:19 | 865481 Canaduh
Canaduh's picture

I'm pretty sure the Alberta government paid off it's debt (temporarily of course) in the 90's.

Mon, 01/10/2011 - 19:23 | 865496 Fix It Again Timmy
Fix It Again Timmy's picture

The only thing that matters is the interest payments, whether it comes from the sweat and blood of the taxpayer or from QE.  You then take the interest payments and buy real assets of any imaginable class - who cares about the principal, just keep that money train coming.  Money for nothing and the assets are FREE - wish I had that racket!

Mon, 01/10/2011 - 19:27 | 865510 Hephasteus
Hephasteus's picture

And defaulting on sovereign debt is "unthinkable". You gotta really hem yourself in and give your self no place to go with this. You gotta be really really stupid to stare in the face of impossibility and match it with unthinkable. Otherwise you won't be enslaved by it.

Mon, 01/10/2011 - 20:36 | 865686 A Texan
A Texan's picture

"...defaulting on sovereign debt is "unthinkable." "


It isn't unthinkable - because Rome did it, France did it, Germany did it, the Confederate States did it, etc., etc., etc.  That it happens all the time is the very point of this article - and we are not immune from the laws of either history or economics. 


It isn't unthinkable, it is just highly, highly unpleasant to think about the consequences.

Mon, 01/10/2011 - 21:22 | 865833 Shameful
Shameful's picture

My Confederate bonds are no good?!?!?! Wait till Jefferson Davis hears of this!

Mon, 01/10/2011 - 21:56 | 865925 CrashisOptimistic
CrashisOptimistic's picture

There are no laws of history or economics.

There has never before existed a world where all of civilization depended on easy access to the core, irreplaceable asset -- and that asset became scarce.

If I put you in a room and inform you that I am withdrawing all the oxygen in 10 minutes, there are no lessons learned from history to save you, nor will higher price on oxygen keep you breathing.

There are no laws of history or economics to be obeyed.  This is all new territory.

Mon, 01/10/2011 - 19:29 | 865515 FB24601
FB24601's picture

We all know it is not sustainable but it is yet to define how unsustainable it is, i.e. the timing when the system collapses.

It had taken 4 years for the Mississippi Bubble to burst, how long it will take for a globalized paper scheme to burst? 40 years from 1971?

Perhaps some parameters may be monitored and some milestone events can be made reference, for example, when central banks started to monetize its debts. Yet the exact timing can never be known until it happens, just as Greenspan said a bubble cannot be really identified until it bursted.

Internet conspiracy theorists (and perhaps with sone NWO double agents) used to point at 2012 as the NWO propaganda. Sadly mass mindset programming and seek of truth are entangled together and cannot be separated. People know more but being programmed that it WILL HAPPEN (in some way). This is probably the order out of chaos as planned by the elites.

Mon, 01/10/2011 - 19:34 | 865522 chockl
chockl's picture

They own everything...Including YOU.

Mon, 01/10/2011 - 19:36 | 865532 cunningtrader
cunningtrader's picture

Lol, my initial post has been junked 5 times now......... one way to stop the theft of US Assets, by the elites, would be to retrospectively apply a law, that repatriates all interest paid on illegally printed money, as in any money that was printed other then by the US Congress.... and all assets purchased subsequently with that illegally gained loot be seized by the US GOV.

Mon, 01/10/2011 - 19:58 | 865590 Threeggg
Threeggg's picture

The unwine would take a million years.

Remember we have paper debt ontop of paper debts ontop of paper assets.

never happen...........................

Mon, 01/10/2011 - 19:53 | 865575 BurningFuld
BurningFuld's picture

Iceland repaid their debt. Didn't they?

Mon, 01/10/2011 - 19:58 | 865589 cunningtrader
cunningtrader's picture

Not from their empy coffers, they borrowed from UK and Netherlands

Mon, 01/10/2011 - 20:11 | 865621 flow5
flow5's picture

"on in 1971."The whole world went along with it because the US Dollar was the reserve currency and no government or people anywhere dared jettison it”  HOW STUPID.  The U.S. had no choice:

The Korean War, which began in June, 1950, initiated the chronic balance of payments deficits that persist to this time and which will probably continue as long as foreigners are willing to increase their net investments in this country. 

The U.S. had a net liquidity deficit in every year since 1950 (with the exception of 1957), up to 1976 (when the private sector contributed its first trade deficit ). These deficits were entirely the consequence of excessive U.S. government (Pentagon) unilateral transfers to foreigners (re: foreign policy – solely our far flung military bases and personnel). 

During all this time the private sector was running a surplus in all accounts: merchandise, services and financial. The Vietnam Ten-year War administered the coup d’etat to our gold bullion standard.  By 1968, in an effort to keep the dollar at the $35 par, we had exhausted nearly two thirds of our monetary gold stocks, or approximately 700 million ounces to about 260 million ounces.

Mon, 01/10/2011 - 20:21 | 865648 RedPacket
RedPacket's picture

If you're ready, take the red pill and understand


Mon, 01/10/2011 - 23:16 | 866123 Captain Kink
Captain Kink's picture

confirmation today:


India looking to pay for Iranian oil with GOLD.

Tue, 01/11/2011 - 01:25 | 866390 JW n FL
JW n FL's picture

by Captain Kink
on Mon, 01/10/2011 - 22:16

confirmation today:

India looking to pay for Iranian oil with GOLD.



Date: Sun Oct 19 1997 17:26

Where are my THOUGHTS leading?

Yes, Mr. Cole you are correct. The Central Banks have known for quite some time the true value of gold in today's paper world. In a very real sense they are on our side. Let's take their side if you will. They are not dumb or stupid, in fact many of them are the best of the best! You see, the world grew up and ran away from them, totally out of control. It has left in it's wake a money system of colossal debt and political mismanagement. They know it is over.


1. Oil isnt $60 a bbl?

2. If the dollar is worthless... Oil costs? given above... that $60bbl aint covering it...

3. Then the entire economic model is running on lies... not a couple anymore... a lot of lies. But what does that have to do with 99% of the People America NOT caring, NOT understanding?

4. How inportant is energy?

Now dont get me started on peak phosphorus...

Or who owns the seed's... that our food supply is provided from... which need which fertalizers. or will not grow...

who owns our food supply from the very begining? propogation on, call it?

and you think pro oil / gold / whatever...? is the answer?

Mon, 01/10/2011 - 22:36 | 866030 Occams Aftershave
Occams Aftershave's picture

Good start to your essay, but the end is a bit abrupt.  We need more thinking through of the end game instead of "until the day comes when it collapses in ruins".   That's pretty vague.   What is it step-by-step?   Newt's state bankruptcy law will be a good move in this economic chess mega MMO game, as it would unlock the stranglehold the unions' contracts have over the states.  Argentina defaulted not too long ago.   It is not in ruins.  Need some precise vocab and clear vision to get through this individually, as a family unit, as a community, as a nation, as a planet.

Mon, 01/10/2011 - 22:43 | 866041 THE DORK OF CORK
THE DORK OF CORK's picture

This sovergin debt issue is a bit of a bore as this is the worlds money supply for better or worse and cannot nor should be repaid in this present monetory system - however the debts in the shadow banking system are far higher and yet this does not add or decrease the money supply.

Wipe out bank bonds and count derivatives as null and void and without foundation and then come back to me about goverment debt , not before.

Mon, 01/10/2011 - 23:09 | 866108 Cookie
Cookie's picture

A whole generation has grown up without understanding the concept of 'saving up to buy something'.

Tue, 01/11/2011 - 01:27 | 866398 JW n FL
JW n FL's picture

Generations have been dumbed down to not understand what your short sightedness just spewed everywhere?


Tue, 01/11/2011 - 01:37 | 866421 Dr. Gonzo
Dr. Gonzo's picture

I happen to have U.S. government coins that were minted before 1913 so I could give them to the government to help them with their money problems. The coins only say $20 on them so they probably would help pay back a little of the money they owe on all the important stuff they've spent it on. 

Tue, 01/11/2011 - 01:52 | 866446 dirtbagger
dirtbagger's picture

Not exactly accurate.  Continental dollars, with a value of about 5 cents on the dollar were redeemed at full value by the first congress.  There was about 40 million held by US investors and 20 million held by foreigners. 

Madisons plan was to reimburse the orignal owners at par, but Hamilton and his cronies wanted the current owners of the notes to be compensated at face value.   It has been insinuated that Hamilton and his buddies had a pretty good idea that Congress would redeem the notes and sucked up as many discounted Continentals as possible.   They could have taught GS a few things about insider trading.

Don't know the source of funds used for redeeming the Continental Dollars - probably issued debt

Tue, 01/11/2011 - 02:05 | 866459 Mark Noonan
Mark Noonan's picture

This got me thinking and then I remembered from Will and Ariel Durant's The Story of Civilization the passage where the creation of national debt was mentioned...hadn't read it in years, but found it and there it was, in 1693 the British government needed more money than revenues would allow and so floated a bond issue returning 7%.  Then I checked at the UK government's web site and found that from that day to this, Britain has never been out of debt.  Not even for a day!

This guy is right - national debt never gets paid off.  Well, until now - we really must force balanced budgets and debt repayment on government.

Tue, 01/11/2011 - 04:27 | 866577 Temporalist
Temporalist's picture

Heard on Bloomberg that Belgian, Irish and Portugese CDS' are at record highs and Spain is near record highs.

Tue, 01/11/2011 - 10:41 | 866957 Stuck on Zero
Stuck on Zero's picture

As I see it, a National Debt is easily paid off with cash. 

Thu, 01/20/2011 - 20:20 | 891839 Guy Fawkes Mulder
Guy Fawkes Mulder's picture

Where's the cash come from?

I can think of only two places for it to come from: (1) more debt, or (2) Fantasyland Monopoly Money.

Tue, 01/11/2011 - 14:28 | 867540 jmc8888
jmc8888's picture


Don't forget Federal Reserve and Nixon in 1971 in a fascist cooperation with the Queen of England and her imperialist monetarist Inter-Alpha Group.

It was a bankster's plan to corner the market BEFORE this started.  Looks like they did. 

Just like we all knew what they were going to do after they repealed glass-steagall.  I still remember on of my gov't teachers (~1995) explaining how within 10 years after repeal, we'd have ourselves a repeat of the great depression.  *and that the big goal, even known then, was to repeal glass-steagall and set this chain into motions...believing they knew different this time".  Yep, it was pretty obvious, even then we were going to needlessly go down this fascist imperial monetarist path.

So, get rid of the debt, especially since most of it is fraudulent, or due to monetary ideological mistakes.  Then use what's freed up on things we actually need that supply siders have been holding out on us about for the last few generations.

NAWAPA (aka the Parsons project....expanded)

Nuclear Power



Fixed exchange rates under a new Bretton Woods style America Credit (hamiltonian) system

Single Payer healthcare under hill-burton standard

Space program

But the dumbass author still believes that when he says 'within his means', he means what is told to him as outputted by the same monetarists BULLSHIT metrics. this is the part where Austrian school shows it's fascist colors. they still use all the same measurements as keynes, they just believe in a different prescription.  No spending.

In other words, living within your means monetary style is completely different than living within your means without monetarism.Too bad the only thing we are presented with, is monetarism.  Krugman or ron paul, same monetarist bullshit, and thus bullshit expectations.

With monetarism you'll never get NAWAPA, Nuclear power, fusion, or any of what we really need.

With monetarism 'living within your means', you'll get collapse, because there is no real Austrian school of thought, it's just a means for the group on top, to impose fascism to save themselves, at least temporarily.

So just remember when it comes to 'living within your means', make sure your definition, isn't that of a monetarist.  Because then, it's completely bullshit, (and thus any ideas you spawn of said ridiculous monetarist ideology) and doesn't give you any good info, including probably tell you to be cheap, when you need to spend.  But that's monetarism.  Pennywise and pound foolish. 

Your enemy is monetarism, whether expressed in fascist; austrian, or keynesian terms.


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