On April 2, 2014 by stratagem
Source: Press TV
“My assessment is that 90% of the value of the US dollar comes from the US military.”
— Former Assistant Housing Secretary Catherine Austin Fitts
— Former Assistant Housing Secretary Catherine Austin Fitts
For decades, America has used its armed strength to enforce the use of the dollar as the world’s reserve currency, effectively making the US military the armed wing of the international banking cartel (IBC). Since 1971 when President Richard Nixon stopped paying US debt obligations with gold, America has increasingly used its military might to prop up the value of the dollar and enforce a global financial structure whose primary beneficiary is the US itself, and whose central bank, the Federal Reserve, serves as the IBC’s supervisory authority.
Who or what is this IBC? It consists of Bank of America, JP Morgan Chase, Citigroup and Wells Fargo along with Deutsche Bank, BNP and Barclays. Eight families reportedly control the IBC: the Goldman Sachs, Rockefellers,
Lehmans, Kuhn Loebs, Rothschilds, Warburgs, Lazards and the Israel Moses Seifs. Besides owning the US oil behemoths Exxon Mobil, Royal Dutch Shell, BP and Chevron Texaco, IBC member institutions are among the top ten shareholders of nearly every Fortune 500 company. While the IBC itself has no formal status, nevertheless its members are represented by an international body, the Financial Stability Board (FSB). Organized as the Financial Security Forum in 1999 by G7 finance ministers and central bank governors, the FSB “seeks to give momentum to a broad-based multilateral agenda for strengthening financial systems and the stability of international financial markets.”
War is extremely profitable for the IBC, since not only do its members profit from financing arms sales to both sides during the conflicts that they themselves often initiate, but also from the post bellum reconstruction. In fact, the most powerful of the central banking institutions in the world, the Bank for International Settlements (BIS), was established in 1930 to oversee reparation payments imposed upon Germany by the Treaty of Versailles that ended the First World War. In addition to providing banking services for central banks worldwide, the BIS supervised the Bretton Woods international currency agreements from the Second World War until the early 1970s, when Nixon reneged on pledges to pay US debt obligations in gold. The BIS also works with the International Monetary Fund (IMF) to expand the IBC-imposed debt-dependency cycle among the nations of the world.
The methodology for global financial domination is really quite simple: America imports more goods than it exports and therefore dollars flow out of the US and accumulate in the central banks of other countries. Since the US has refused to honor these obligations in gold, the central banks are forced to invest in US treasury bills, bonds and other US financial instruments that pay interest which is financed by the issuance of further debt. The result is a US-dominated global financial system dependent upon maintaining the value, or more correctly, minimizing the rate of depreciation, of the dollar, allowing the US to enjoy an extravagant consumer-based economy at the expense of the rest of the world.
Regarding the insidious US debt-domination process, Wall Street analyst Michael Hudson explains that “by running balance-of-payments deficits that it refuses to settle in gold, it has obliged foreign governments to invest their surplus dollar holdings in Treasury bills, that is, to relend their dollar inflows to the US Treasury.”
The system is somewhat self-perpetuating, for should a non-US central bank decide to divest its dollars, it would effectively sabotage the economy in its own country. Of course, foreign central banks and financial institutions are well aware that by investing in US treasury securities, they will lose money since the Federal Reserve will only turn around and “print” more dollars, thus further diluting the value of their reserves. However, if these foreign institutions would fail to reinvest their dollars in more T-bills, the rate of depreciation of their dollar holdings would accelerate dramatically. Such awareness holds most governments in check, preventing wholesale dumping of dollars, which of course would bring the entire global system down, along with the IBC. READ MORE…
