How all was lost

Today, on the Ides of February, we hold our hat in our hand; we bow our head and let our mouth fall open in amazement. Our Lenten programme of fasting, prayer and meditation is producing results. We are lightheaded from near-starvation and alcohol deprivation. But our thoughts are clear. Or else, we are hallucinating.

In the last two days, we’ve taken a look at what promises to be the biggest bust-up of all time.

It began in stealth when a small group of big bankers boarded an unlisted train in the middle of the night. They all knew each other. All were from powerful New York banking families. But they didn’t even use their own names when talking to one another, so afraid were they that word of their meeting would leak out.

Then, the strange little group travelled in complete secrecy to a small island compound off the coast of Georgia. There, they could talk freely. But the conversation wasn’t about hunting or sports or politics or religion. It was about how they could change the way America – and the world – does business.

Every transaction – every purchase, every sale, every salary, every bonus, every investment gain or loss – everything – would be affected. Everything would change.

Then, still operating in near total secrecy, they got Congress to pass a law on Christmas Eve, when few members of Congress were at work and almost no one was paying attention – a law that would put vast new power in their hands. It must have been a bit like Obama’s health care plan. It changes everything, but few people read the law before voting on it and almost no one knew what it would mean.

Now – 100 years later – it is not only the law of the land; we have become the Land of the Law. That is, this new law changed the way we keep score in life, in business, in investing. It also changed the face of the country.

We are now a nation shaped by paper money, formed by easy credit and activist bankers, built on a dollar of no sure value. It is a system that allows people – especially those in the federal government – to spend money they don’t have on things they don’t need and can’t afford. More importantly, it makes it possible for them to transfer vast sums of money and massive new powers to themselves.

It is that system that has kept the typical working man’s wages flat for the last 40 years (easy money and nearly unlimited credit allowed Americans to buy what they needed from overseas manufacturers and never have to settle up on the bill).

It is that system too that is responsible for electing presidents – such as Barack Obama himself, who without the support of this banking cartel would never have won the election in 2012. Americans go to the polls. They think they decide who runs the country. But the real decision was made long ago.

The real decision makers are people whose names few people know. If they decide to dump a president, his chances of re-election plummet. If they decide to stick with him – as they did with Obama – he is a near shoo-in.

Do you remember? Just a few months before last year’s election, stocks and houses were sinking and Obama was running behind in the polls. And then, things started going his way. His numbers started to look better. Housing began to stabilise. The stock market headed back up.

What happened?

The elite bankers – operating through the central bank that they own and control announced more ‘stimulus’. And now they’re committed to a programme of ‘QE Forever’. As long as it takes. As much as it takes.

What did this mean really? It meant that the Fed was printing money and giving it to its own cartel members. It didn’t go to ‘Mom & Pop’ businesses. It didn’t go to struggling households. It didn’t go to ‘rogue economists’.

No, it went to the big financial interests – the successors to the same fellows on the train 100 years ago. The movers and shakers in the financial world. The elite, the rich, the 1%. And it – more than anything else – determined the outcome of the 2012 election.

The popular press rant and rave about ‘the rich’. But they have no real idea what is going on. They think the Fed is trying to ‘stimulate’ the economy. They’re all for it. More money. More stimulus. More power to the activists.

But look what happened. The press reported a ‘recovery’ in housing. There was no such thing going on – not really. Instead, as revealed in this space, the big money was getting money – at virtually no cost, thanks to the Fed’s Zero Interest Rate Policy – and using it to buy houses. Ownership was passing from the little guys to the big guys, from Main Street to Wall Street.

The big, well-financed players were buying up hundreds of thousands of houses. Yes, they were putting a floor under prices. But they were also shifting more wealth from middle America to the top of America.

And then Barack Obama – buoyed by a strong stock market, bottoming out housing prices and phonied-up employment and inflation numbers – appealed to the little guy for his vote!

The whole show was breathtaking. The election was bought for him by the richest, most elite elements in the nation. And it was paid for with money that cost them nothing.

• Don’t miss Bill’s next Daily Reckoning. To receive the next article straight into your inbox as soon as he’s written it, sign up to the email list here .

Information in The Daily Reckoning is for general information only and is not intended to be relied upon by individual readers in making (or not making) specific investment decisions. Appropriate independent advice should be obtained before making any such decision. Your capital is at risk when you invest in shares – you can lose some or all of your money, so never risk more than you can afford to lose. Always seek personal advice if you are unsure about the suitability of any investment. The Daily Reckoning is an unregulated product published by Fleet Street Publications Ltd. Customer services: 020 7633 3600. Fleet Street Publications Ltd is authorised and regulated by the Financial Services Authority. FSA number: 1152 34

  • Critic Al Rick

    And the seed of Totalitarian World Government was sown.

    And some people, even ones you would think would not be so naive, don’t (well, appear not to) believe the BoE is owned and controlled by The Banking Cartel.

    Money is the route to all evil.

  • somersdave

    The internet has truly blown the lid on the arcane world of central banking.

    The egregious power vested in a few, to create money from nothing has seeded most of the ills and monstrous evils that have afflicted modern humanity. I believe Eustace Mullins was the first to expose the operation of the FED, after being directed by Ezra Pound (whom the US gov. – Soviet style – had locked in an asylum for 13 years).

    Go investigate! Films like Bill Still’s ‘Money Masters’ explain how the BOE – the model for central banking – was formed and how Britain then had more or less, 100 years of contiguous wars.

  • Peter Greenhalgh

    The Ides of February are not the 15th but the 13th, unlike the Ides of March.

    In March, July, October, May,
    The Ides fall on the 15th day

    Otherwise they are on 13th.


    “I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around the banks will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered.”
    -Thomas Jefferson

  • Boris MacDonut

    The Ides of February is the 13th, being 8 days after the Nones on the 5th. It is little inaccuracies such as these that detract any credibility from what Bill writes.

MoneyWeek magazine

Latest issue:

Magazine cover
Party's over for Putin

The only portfolio safe from Russia's rout

The UK's best-selling financial magazine. Take a FREE trial today.
Claim 4 FREE Issues

Hedge fund manager Hugh Hendry: 'It felt like the sun rose only to humiliate me'

In a series of three short videos, Merryn Somerset-Webb talks to Hugh Hendry, manager of the Eclectica hedge fund, about everything from China to the US, Europe, and Japan.

Which investment platform?

When it comes to buying shares and funds, there are several investment platforms and brokers to choose from. They all offer various fee structures to suit individual investing habits.
Find out which one is best for you.

19 December 1932: BBC World Service begins

The first royal Christmas message by George V gave the fledgling World Service an early boost six days after it was founded in 1932.