The banks that own the Fed are controlled from London

"The City" of London

"So you see, my dear Coningsby, that the world is governed by very different personages from what is imagined by those who are not behind the scenes." --Disraeli, Prime Minister of England during Queen Victoria's reign.

 

The astounding idea that the Federal Reserve System of the United States is actually operated from London will probably be rejected at first hearing by most Americans. However, Minsky has become famous for his theory of the "dominant frame". He states that in any particular situation, there is a "dominant frame" to which everything in that situation is related and through which it can be interpreted. The "dominant frame" in the monetary policy decisions of the Federal Reserve System is that these decisions are made by those who stand to benefit most from them. At first glance, this would seem to be the principal stockholders of the Federal Reserve Bank of New York. However, we have seen that these stockholders all have a "London Connection".


The "London Connection" becomes more obvious as the dominant power when we find in "The Capital City" [61] that only seventeen firms are allowed to operate as merchant bankers in the City of London, England's financial district. All of them must be approved by the Bank of England. In fact, most of the Governors of the Bank of England come from the partners of these seventeen firms. Clarke ranks the seventeen in order of their capitalization. Number 2 is the Schroder Bank. Number 6 is Morgan Grenfell, the London branch of the House of Morgan and actually its dominant branch. Lazard Brothers is Number 8. N.M. Rothschild is Number 9.

Brown Shipley Company, the London branch of Brown Brother Harriman, is Number 14. These five merchant banking firms of London actually control the New York banks which own the controlling interest in the Federal Reserve Bank of New York.

The control over Federal Reserve System decisions is also founded in another unique situation. Each day, representatives of four other London banking firms meet in the offices of N.M. Rothschild Company in London to 'fix' the price of gold for that day. [see note [E1]] The other four bankers are from Samuel Montagu Company, which ranks Number 5 on the list of seventeen London merchant banking firms; Sharps Pixley; Johnson Matheson; and Mocatta and Goldsmid.

Despite the huge tide of paper pyramided currency and notes which are now flooding the world, at some point, every credit extension must return to be based, in however minuscule a fashion, on some deposit of gold in some bank somewhere in the world. Because of this factor, the London merchant bankers, with their power to set the price of gold each day, become the final arbiters of the volume of money and the price of money in those countries which must bow to their power. Not the least of these is the United States. No official of the Federal Reserve Bank of New York, or of the Federal Reserve Board of Governors, can command the power over the money of the world which is held by these London merchant bankers. Great Britain, while waning in political and military power, today exercises the greatest financial power.
It is for this reason that London is the present financial center of the world...
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