A Myth Called The American Dream

Once upon a time, people in America, pursued something called the American Dream. It was sweet dream with a house and yard enclosed by a white-picket fence. Kids and dogs played all day long on fresh cut lawns while happy Mom’s served up cold lemonade on silver platters. Dad might have worked at a plant making good money, thus ensuring the entire family was able to enjoy extra comforts and luxuries, while still providing a solid lifestyle for his family.

Replicate this idea of the big dream a million times over and it actually spells big money. Money so big— well, bankers never complained for a minute they had money to lend and neither did all those other industries tied into the American dream of home ownership. Like a magic money-pump the economy swelled and money flowed in powerful currents of circulation allowing a multitude of businesses to thrive while catering to the ever growing prosperous property owners and even those renters alike. Across the country the people enjoyed this modern lifestyle like never before and the great chieftains of mega-industry puffed on their expensive cigars as the profits came in like the tides. Life was good in America so long as that dream, like a shining beacon in the darkness, extolling all that was good, delivered on the promises so made and thus kept.

But something wasn’t quite right with this dream.

Tiny little warning cracks began to appear in the dream not unlike micro-cracks in a large crystal ball. A war renewed with greater intensity as a shift of leadership veered the country off into stormy waters, while civil rights came back into sharp focus, and yet the American dream was strong, perhaps too strong for mere agitations to change the greater fortunes of the people working hard to retain their sense of prosperity.

—-1960 – 1969

“The sixties were the age of youth, as 70 million children from the post-war baby boom became teenagers and young adults. The movement away from the conservative fifties continued and eventually resulted in revolutionary ways of thinking and real change in the cultural fabric of American life. No longer content to be images of the generation ahead of them, young people wanted change. The changes affected education, values, lifestyles, laws, and entertainment. Many of the revolutionary ideas which began in the sixties are continuing to evolve today.”

[FACTS about this decade.
Population 177,830,000
Unemployment 3,852,000
National Debt 286.3 Billion
Average Salary $4,743
Teacher’s Salary $5,174
Minimum Wage $1.00
Life Expectancy: Males 66.6 years, Females 73.1 years
Auto deaths 21.3 per 100,000
An estimated 850,000 “war baby” freshmen enter college; emergency living quarters are set up in dorm lounges, hotels and trailer camps.]

Goodwin, S. and Bradley, B . (1999). 1960-1969. American Cultural History.
Lone Star College-Kingwood Library, Kingwood, TX. Retrieved from

When the oil crises hit America the dream hit the skids and landed in a ditch:

The decade of the 1970s was a period of limited economic growth due in part to the energy crises of that decade. Though the mid decade was the worst period for the United States the economy was generally weak until the 1980s. The period marked the end of the general post-World War II economic boom. It differed from many previous recessions as being a stagflation, where high unemployment coincided with high inflation.

Other causes that contributed to the recession included the Vietnam War, which turned out costly for the United States of America and the fall of the Bretton Woods system. The emergence of newly industrialized countries rose competition in the metal industry, triggering a steel crisis, where industrial core areas in North America and Europe were forced to re-structure. The 1973-1974 stock market crash made the recession evident.

According to the National Bureau of Economic Research, the recession in the United States lasted from November 1973 to March 1975.[22] Although the economy was expanding from 1975 to the first recession of the early 1980s, which began in January 1980, inflation remained extremely high for the rest of the decade.

During this recession, the Gross Domestic Product of the United States fell 3.2 percent. Though the recession ended in March 1975, the unemployment rate did not peak for several months. In May 1975, the rate reached its height for the cycle of 9 percent.[23] (Only two cycles have higher peaks than this, the current cycle, where the unemployment rate is currently 9.7% in the United States and the Early 1980s recession where unemployment peaked at 10.8% in November and December 1982.) http://en.wikipedia.org/wiki/1970s_energy_crisis

During this time the “Coin” was about to be severed once more:

“By 1971 U.S. government stocks had fallen from their 1959 peak of 2.1 billion ounces to around 170 million ounces. The U.S. government had removed silver entirely from its currency, and ceased to intervene in the silver market. Total silver supplies had reached a record 747.4 million ounces in 1965, of which 54 percent, or 400 million ounces, came from the U.S. Treasury. From that point onward, the Treasury was backing out of the silver market, and total supply declined steadily, and never has approached that 1965 record again.” http://www.silverinstitute.org/site/silver-price/silver-price-history/1971-1978/

What the government tells the public is rarely close to the truth:

A History of Rigged & Fraudulent Oil Prices (and What It Can Teach Us About Gold & Silver)

“Mr. Engdahl, before we talk further on oil, I would like to take a look with you at the place you were born, the United States of America. Without any doubt the U.S. has some profound financial and economic problems. But isn’t maybe the American elite the biggest problem of them all, since it seems that those people who belong to it have not the best interests of the American public at heart?

FWE: Well, if you look at the American history over the last century and even more, going back to the Civil War, with the rise of the House of J.P. Morgan based on defrauding the government for the sale of rifles during that war, when Morgan emerged as the Titan and No. 1 among the Wall Street “Gods of Money”, as I’ve called them in my book, it becomes clear. The American elite in that sense—the people with real power like the Rockefellers, who succeeded the House of Morgan after 1931—they never have had the interests of the American public at heart and they never will. They simply regard themselves as perhaps some of the Russian oligarchs regard themselves towards the Russian people, but even more so, they think they are literally the gods of the world. People are simply for them so many objects to be dealt with as they see fit like so many drones in an insect colony.

When you’re dealing with the United States you always have to differentiate between some 300 million normal people like you and I, who are trying to get on with their lives and trying to provide for their families and work a decent job and live a decent life, and maybe a handful of a few dozens of ultra-powerful people like David Rockefeller or in an earlier generation the House of Morgan. They literally see themselves as a race separate. That is one of the reasons why they have been fanatic backers of eugenics over the decades. Well before the Third Reich, they financed what later became Hitler-Nazi eugenics in Germany – the Rockefeller Foundation I am talking about. This is the kind of mentality of these elites.

So you think that this elite in America does not have an interest to stop the next Great Depression?

FWE: Well, let me give you an example: In May of 2009 at the home of the president of the Rockefeller University, a very, very elite assemblage of billionaires only – not millionaires but billionaires only – were invited at the behest of David Rockefeller and Bill Gates, they signed the letter invitation. They called themselves “the Good Club.” These are some of the wealthiest people in the world – David Rockefeller, of course, and Bill Gates with the Microsoft fortunes, Warren Buffet was there and Ted Turner of CNN fame. The subject of discussion, according to reports that leaked out, was not: ‘How do we deal with this world financial crisis and this great depression?’ Their absorbing passion in this meeting that they had in New York at the Rockefeller University was: How do we stop global population growth over the next several decades?(vi) So that will give you an idea.

It is my estimation at this point that they are trying to use the great depression that their financial shenanigans have caused. They deliberately created this securitization fraud, this Ponzi scheme after 1999, when Tim Geithner and Larry Summers were both in the Treasury department of the Clinton administration and they drafted the legislation for deregulating the banking system, allowing financial derivatives to be traded without any supervision by the Commodity Futures Trading Corporation, the U.S. Government derivatives supervisory agency – and they knew what they were doing. As Paul Volcker said in an interesting interview – I am certainly not a fan of Volcker from his past, but in this case I agree with him. Paul Volcker said about a year ago when he was asked what he would point to as the most positive contribution of banking innovation in the last twenty years: Well, if I think about it, there is one positive contribution – the invention of the automatic teller machine (vii). Other than that, derivatives and all this financial innovation, has done nothing but harm. That’s a paraphrase, but I think in this case Volcker is right on his estimation.

One major problem of our time might be that the central bank of the U.S., the Federal Reserve System, is privately owned.

FWE: Yes.

First of all: is this normal that a central bank is owned by a private banking cartel that can in this case run the monetary policy of the U.S.?

FWE: Let’s leave out the “normal” right now, that’s the direction that these money interests are trying to drive the entire world to get the world banking system decoupled from any kind of participatory pressure from the electorate. The Federal Reserve was created, as you know, in 1913. It was passed by an almost empty session of Congress two days before Christmas Eve in 1913 and signed within hours by President Woodrow Wilson, who some people say was put in as President – he was Princeton University’s president before that and then Governor of New Jersey – but he was put in as President on the money of J.P. Morgan, Rockefeller and so forth, with the sole purpose as a Democrat of giving left cover if you will to the creation of the Federal Reserve. It was a very controversial proposal that has been battered around since well before the financial crisis of 1907.

The fact is, and few Americans are even aware of this – they think that the President proposes a Chairman of the Federal Reserve and therefore the Federal Reserve is a government agency. It is not at all. The various distract banks of the Federal Reserve – the Dallas Fed, the San Francisco Fed, the St. Louis Fed, and above all the primus interparty is the New York Fed – are stock companies, who’s stock holders include companies such as A.I.G., JPMorgan Chase and so forth. So these are privately owned entities that make up the Federal Reserve System. And that is the core of the problem.

The Chairman of the Federal Reserve has one essential mandate: to preserve the power of the big banks – as one Congressional hearing in the 1920′s called it the “Money Trust” banks. And that’s really only about eight or at most nine institutions, I would estimate, that are really totally dominating the multi-trillions of derivatives worldwide, that are totally dominating the securitization scams and that are totally dominating Washington policy of the U.S. Treasury. So the privately owned Federal Reserve is, I think, one of the major problems of the ruin of the American industrial and social economy let’s say since the decoupling from gold in August 1971 certainly, and even before then.

As a historian, would it be an exaggerated statement to say that the entire history of the United States of America up to the year 1913 is the story of a Republic’s struggle against a central bank highly concentrated in the hands of a few men?

FWE: I think that’s a very interesting way to look at that history. You had the creation of the First Bank of the United States under Alexander Hamilton, the first Treasury Secretary. Many, even American historians, are under the impression that was a national bank owned by the U.S. government. In no way was this bank majority owned by the U.S. government. There was a minor stock share held by the U.S. government, but the main shareholders were private banking interests. Interestingly enough, one of the largest block of shares in the Bank of the United States was held by the House of Rothschild in London. So what the British lost during the Revolutionary War after 1776, they tried to get back through the back door by owning the bank that handles the U.S. public debt. The charter of that bank was not renewed, there were bitter fights in the history of that. There was a Second Bank of the United States created some years later and Andrew Jackson as President was a bitter enemy of the idea that the debt of the United States would be handled by a private entity.

And then during the Civil War, Lincoln issued Greenbacks. That was a form of fiat money in an emergency situation, but what it did, partially at least, was to take the control of the U.S. debt temporarily out of the hands of London and New York banks. That displeased London to an extraordinary extent. Interestingly enough, the evidence that has emerged about the assassination of Lincoln at the end of the Civil War all points to the hand of the House of Rothschild and London City bankers, financed through Judah Benjamin, who was a leading Confederate official – the whole John Wilkes Booth assassination of Lincoln. Judah Benjamin disappeared from the United States after the assassination and spent the rest of his years in England. So one can draw conclusions as to who had an interest in eliminating Lincoln, though of course we may never know conclusively.

The other thing was the war of 1812. A very bizarre war when you look at American history. The British started it with their ships off the coast of Washington and New Orleans. They started bombarding Washington and declared war, and they tried to move down from Canada. And that was apparently a revenge by the London banks for the fact that the U.S. President had allowed the charter of the First Bank of the United States to expire and not to be renewed. So very much of the history of the United States up to 1913 is about this struggle.[*The other factor never mentioned was the shortages of Hemp.]

Also the whole question of silver versus gold. Gold was something in the interests of the House of Morgan in New York and certainly of the London banks, because they were the heart of the gold standard of that time. So if the United States would go on to a silver standard or even a bi-metallic standard, that would vastly diminish the power of J.P. Morgan, Rothschild and friends in London, Barrings and others. They bitterly fought William Jennings Bryant, a man famous for the speech “You shall not crucify mankind upon a cross of gold.(viii)” But they essentially defeated the silver faction through all sorts of Congressional corruption and manipulation and so forth. So very much of the American history is about these struggles, yes.

If all of this is true, then it is the more important to understand a) how the Federal Reserve Act was put in place, and b) how the Federal Reserve System actually functions. I think related to a) maybe you could talk a bit about the bank panic of 1907. Who was behind this?

FWE: Well, surprise, surprise: it was the House of Morgan and their friends. They created a run on a large independent bank in New York City and triggered what became the panic of 1907. It was turned into an industrial, economic depression across America with huge unemployment. Through that panic and their lobbying efforts they got the Congress to vote for setting up a national monetary commission to examine how to prevent future panics. Well, it was a panic engineered by the House of Morgan and friends, and the way to prevent future panics would be to give them the control of the nation’s money – take it away from the Congress, where it is mandated Article 1, Section 8 of the Constitution, and give it to the cartel of private banks that make up the New York Federal Reserve Bank, which was deliberately designed to be the most powerful of all the banks in the Federal Reserve System.

And then the Federal Reserve Act was passed. How does the Federal Reserve System function?

FWE: Today you mean?


FWE: Basically, it has unlimited power to print money to put it in the popular jargon. This is what we see Ben Bernanke doing since 2008, these are trillions of dollars, but of course Bernanke refuses to divulge any great details about what they are actually doing with the banks and which banks are benefiting from this Federal Reserve largesse. They’re buying up all the toxic waste, putting it down on the Federal Reserves balance sheet and giving the banks then triple A rated U.S. Treasury notes in return.

The Federal Reserve has an Open Market Committee, the FOMC. They meet every six weeks to determine interest rate policy, essentially until today. Several members of the Federal Reserve Board in Washington, always the Chairman of the Fed, in this case Bernanke or before him Greenspan, would be on the FOMC, the other ten or eleven reserve banks around the country would have rotating seats on the FOMC. So not all eleven banks are represented at all times.

The thing is skillfully designed to give the majority power to the New York Fed. The New York Fed is always on the FOMC, because of the international role of the New York Fed – and the fact is that the Federal Reserve Act was drafted by Morgan & Company, Rockefeller, to give the power to the New York money center banks. So they are always on the FOMC. And of course the Chairman has enormous power over the decisions of the FOMC.

Officially, one of the mandates of the Fed is to maintain the stability and value of the U.S. dollar. (Mr. Engdahl laughs.) But one of the real results of the Fed seems to be the continued devaluation of the U.S. dollar in a quite remarkable fashion – which accelerated since the 1970s. Why so?

FWE: Simply because that was to the benefit of Wall Street. After the break of the link with gold in 1971, which I’ve mentioned earlier, the group around David Rockefeller, then at Chase Manhattan Bank, the family bank, realized that they had an incredible capability in their hands with a floating currency and the fact that the U.S. was the sole military superpower outside the Soviet Union. The fiat dollars that were being printed by the U.S. ultimately drove this devaluation worldwide over this period – I think there’s been a 2900 per cent inflation—that is, a two thousand nine hundred percent increase of the quantity of dollars circulating in the world economy since August 1971, according to the last data that I have seen, and in the twenty years before that it was something like 56 per cent increase of dollar reserves worldwide, so naturally that was a period of relative stable inflation or non-inflation really, and then after the break you had this highly inflationary period.

Well, what certain people around Paul Volcker and others figured out is that the debt was their best asset – best that was for the banks, for the private banks, not for the nation, but for the private banks. So as long as U.S. debt is rated triple A, and, absolutely essential: so long as the US dollar remains the reserve currency of trade and in central bank reserves worldwide, then the United States essentially can export its inflation as it did to Japan in the 80′s, now today to China, to the European Union and to the rest of the world. In effect, the dollar surplus lands have no choice with their surplus dollars, but to buy U.S. Treasury debt – to finance America’s wars around the world, whether it’s in Iraq directed against China’s ultimate interests or Russia’s ultimate interests, or any of the U.S. wars. Those are in a sense being financed by the dollar accumulations in the central banks of Asia and elsewhere around the world. So it’s a diabolical and quite clever scheme that they have realized: They could do that after the decoupling of the dollar from gold in 1971.

Ever since the early 1970s the dollar has been essentially backed by oil.

FWE: Well, that’s what I’ve called it. In my book “Century of War” I talk about the Petrodollar. This is something that has been misunderstood by some writers of late; they think that the dollar is still today a Petrodollar. Oil is the largest dollar traded commodity in the world economy bar none, that’s very clear. But today the dollar, I would say, is a currency that is backed not so much by petroleum prices priced in dollars, but more by F-16 fighter jets and Abrams tanks, in other words by raw US and NATO military might. It’s getting down to the basic essentials of power here since the beginning of the Bush administration. Bush and Cheney were brought in by the elites in order to take off the velvet glove and show the iron fist to the world, because more and more things were getting out of control of an American hegemony or American sole superpower situation with the emergence of China, Russia and different things going on in the European Union.

Let’s say then the dollar was backed essentially by oil.

FWE: Yes, going back to the period after 1973.

I would like to talk with you about an important event in that respect. This was the oil shock of 1973/74.

FWE: Correct.

You figured out in your book “Century of War” that this event was politically intended by a club that met on a Swedish island in 1973. Can you share some light with us on this topic, please?

FWE: Sure, most happily. I had the fascinating pleasure of being invited personally by Sheikh Zaki Yamani in September 2000 to his annual retreat outside London. He has an energy center in London that he founded after Washington got him dismissed as the Saudi energy minister during the reverse oil shocks of 1986, where Yamani was quite opposed to U.S. State Department pressure on Saudi’s monarchy. Yamani invited me because he had read the “Century of War” book – an Iraqi friend had given it to him. He called on me to give a presentation to this grouping of energy bankers from the City of London and oil men about what really happened in 1973. He introduced it by saying: “This is the only account that exists of what really happened in ’73 when I was head of OPEC and Saudi energy minister. I lived through this and Mr. Engdahl has described it accurately.”

What happened is the following: There was a meeting – and some people might get scared off and say this is conspiracy theory, but I am in possession of the actual confidential documents that quite legally came into my possession by chance in Paris years ago: the protocol from the May 1973 meeting of the Bilderberg Group in Saltsjobaden, Sweden. I have the attendees list from the Hoover Institute of War and Peace in California, I have the facsimile of the American secretary to the Bilderberg about which guests would be invited including Henry Kissinger from the American side to this May meeting. And in there, if you make the calculation, they listen to a presentation and debate, and these are some of the most powerful people in Europe and the United States – hand-picked by David Rockefeller by the way. The heads of all the major oil companies, the Seven Sisters, were also in attendance. They talk about what amounts to a 400 per cent increase in the price of OPEC oil in the very near future. Of course, they do not give specifics, but they talk in the abstract.

The entire discussion was not how do we as some of the most powerful representatives of the world’s industrial nations convince the Arab OPEC countries not to increase oil prices so dramatically. Instead they talked about what do we do with all the petrodollars that will come inevitably to London and New York banks from the Arab OPEC oil revenues. Henry Kissinger, who coined the term after the oil shock in 1973/74, talked about “recycling petrodollars.” And in fact what happened was – and this came directly from Sheik Yamani privately in a discussion with me at his home in 2000, he said: “I was sent by my King, the Saudi King, as a trusted emissary to talk with the Shah of Iran and asked the Shah why at the September 1973 OPEC meeting after the Yom Kippur war he was adamant about such a huge OPEC price increase as a permanent price.” And he said: “The Shah turned to me and said: ‘Tell His Excellency, the King of Saudi Arabia, if he wants to have an answer to that question, he must go to Washington and ask Henry Kissinger! (ix)” In other words, this was dictated to the Shah.

So this oil shock came two years after the free floating of the dollar, when the dollar was essentially falling like a stone, because the U.S. economy was starting to show major ruptures from the Post-World War 2 period when the U.S. industry was a world class leading industrial power and the gold reserves and everything else was in an ideal correlation to one another. The U.S. economy was coming into very, very severe structural problems in the early 1970′s. So the dollar was falling and the French and the German economies were really beginning to boom as was the Japanese economy, and certain elites connected with the money center banks in New York, I think, decided that it was time for a major shock to reverse the direction of the global economy, even at the cost of a recession in the American economy – that didn’t concern them so much as long as they were in control of the money flows.

Back in 1975, Washington sent a very senior Treasury official to Riyadh, and essentially told Riyadh that OPEC was not to sell a single barrel of oil unless it is priced in dollars, because at that time the German government, the French government and the Japanese government were all knocking on the door of OPEC, promising their quality machine-tools, the excellent high-quality German machine tools, French or Japanese trade that the Middle East countries so dearly wanted to build up their economies. But they asked it be sold against oil prices in their own currencies so they would be less dependent on the dollar. At that point, Washington intervened and said: “That’s a no-no. Oil must never be sold except in dollars (x).”

Why was this of essential importance to the U.S.?

FWE: Because since 1945, U.S. power projection in the world has rested on two pillars. One pillar is that the U.S. has the overwhelming military might on this planet. Today it spends more on military equipment, personnel and power projection than the next 42 countries in the world including Russia, China and all of Europe combined! The second pillar of U.S. power is the role of the dollar as the world reserve currency. Both two have a combined synergy. If anyone wants to understand the power of “the American Century,” as Henry Luce, the owner of Time magazine, called it in 1941, then they have to look at these twin-pillars and how they both interact.

The oil price jumping by 400 per cent in 1973/74 saved the dollar. The dollar had floated up on a sea of oil. Again, we have to remember that Nixon broke the link of the dollar with gold unilaterally in August of 1971, and after that time it plunged by some 40 per cent against major trading currencies like the Deutsche Mark and the Japanese Yen. What saved the dollar, what saved Wall Street and the power of the dollar as a financial thing, but not the U.S. economy by any means, was the 400 per cent OPEC price shock. That halted growth in Europe, it smashed the developing countries, which were enjoying a rapid growth dynamic by the early 1970′s, and it tilted the power balance back into the direction of Wall Street and the dollar system.

So if you look at the whole ensuing history of the 1970s into the 1980s Latin American debt crisis or Third World debt crisis, which also destroyed Yugoslavia, Poland and some other East block countries as well, that was all about recycling petrodollars through the euro-dollar banks, U.S. banks in London, British banks. This was the heart of the so-called euro-dollar market then, the City of London – as well as select banks like Deutsche Bank, UBS and a couple of Japanese banks were junior partners in this.

But the main thing was: the Anglo-American banking elite recycled the surplus dollars that Saudi Arabia, Kuwait, the Emirates and all the other OPEC countries including Iran until the fall of the Shah circulated. By the way, the Shah himself ran all of the oil profits of the Iranian oil company through one single bank, and that was Chase Manhattan Bank of David Rockefeller – interesting fact of history. So through the recycling of Petrodollars, the dollar was tied to the price of oil and the oil majors, the Seven Sisters, the U.S. and British oil majors, really controlled the price of oil. They blamed it on the Arab sheiks, but the control lay in New York and London.

Today, I think the U.S. is going to do everything in its power to keep oil priced in dollars, but the role of the oil price in dollars is not as strong as it was in the mid 1970′s, because of the emergence of these futures markets controlled by banks such as Goldman Sachs—the advent of so-called “paper oil“. With that control of futures like ICE Futures in London they can ramp up the price of oil, as they did in 2008 with a price of $147 and then crash it down to the high 30′s. For what reason? They knocked the wind out of Russia’s sails at the time when Putin and Medvedev were using oil and gas export to create a major counter-pole to U.S. power in the world.

A high oil price is good for Russia and bad for China, is this the equation?

FWE: In general, yes. The problem for Russia is that it doesn’t control the market.

And then several friends drew my attention to work that had been done in Russia during the Cold War on the so-called deep origins abiotic theory of hydrocarbon creation. I met some of the Russians who worked with this over decades and I read their scientific papers. These were difficult papers, but they were intelligible. More and more I became convinced that the whole Peak Oil business was a myth. In my new book, that I have just finished, provisionally titled “Oil: The Secret War,” I discuss how the British and later the American oil majors around the Rockefeller group since the dawn of the conversion of the economy from coal to petroleum have cultivated a myth of oil scarcity.

Simple question: which interests are served by that?

FWE: The interests of the oil majors, of their bankers and of the UK and US power circles because it is to their advantage that nobody else gets independent control of energy. Why? Because energy is the governor through which they essentially control the world economy. In preparation for this book and in the course of my research, I went back to the original guru of the Peak Oil movement, M. King Hubbard. And he was quite an interesting kook, literally, even a leading member of a US futurist technocratic society that at the time was accused of imitating Mussolini’s Black Shirts. King was a geologist for Shell Oil Company, and when he prepared his now famous paper in 1956, that he was to deliver at the annual meeting of the American Petroleum Society, he gave it first to his boss at Shell. And his boss told him: “I don’t care what you say to the geologists in your speech, King, as long as you don’t talk this nonsense that oil reserves are increasing.” Of course, he didn’t talk the nonsense. But if you read his original paper of 1956, there is no scientific argumentation, its simply assertion. And the assertion is all based on the idea that oil is a fossil fuel and is limited. Nowhere is that proven.

Well, the Russians under the mandate of Stalin in the early 1950′s got the best geophysical, physical and chemical academics in Russia and Ukraine in a top secret project together, that was classified highly secret because it was so strategic, and they looked at the scientific basis to explain what the origins of oil were. They looked at the theory of fossil origins, and after they dug deeply into the literature, they said that this is absolutely absurd, there is no scientific proof of this, there is no causality that’s been demonstrated, it’s just asserted in American geology textbooks in the University, and because it is repeated so many times nobody even bothers to question if oil is a fossil fuel or coal is a fossil fuel, which M. King Hubbard also pointed out in his paper. Because to be consistent, they have to say that oil, gas and coal are all fossil fuels.

Then someone made me the argument: if you were to take the single largest oil field of the world, Ghawar in Saudi Arabia, which was discovered in 1948 and calculate the barrels of oil that Ghawar has produced up to the present, and then you hypothetically imagine that you could convert, let’s say, a dead dinosaur, that you could take the biomass of that dinosaur, bones included, 100 per cent, one to one to petroleum, which of course no one would argue is possible, but just to hypothesize, that you would require a cube of compressed dinosaur detritus or remains that is 19 miles wide, 19 miles high and 19 miles deep—only to account for that one huge oil field in Saudi Arabia. And that is to say nothing of the Permian Basin oil reservoir in Texas or the East Texas oil fields, which are vast oil fields. So then I began to really question this Hubbert peak oil hypothesis very seriously.

The Russians, with whom I later was in touch, said: “We think there is a different origin, and if you look at volcanoes, you come closer to the truth.” Their hypothesis at that point – now it’s been amply proven, even by the Carnegie Institution in Washington in independent experiments where they brought in some of the Russian scientists to consult with them – is that oil is created under the pressure and the temperature existing in the earth mantle.

Imagine that the core of the earth is a giant, gigantic nuclear reactor or if you look at a cut-away of a volcano in a geology museum you can get a good conceptual image for this, and this giant oven deep in the Earth mantle is spewing out matter at enormous temperatures and pressures constantly, and a volcano erupts because somehow the earth, which is constantly in motion, it’s constantly expanding minimally over time, creates cracks and fissures. We saw that with tragic consequences in the early part of 2010 in Haiti, where three major tectonic plates collide and diverge over the Port-au-Prince area. And also near Cuba – and that allows these volcanic eruptions to press up towards the surface and create mountains or volcanoes in certain cases. And if you trace the volcanic ring of fire in the Pacific and look at a map of the tectonic plates, you will find a fascinating correlation there.

So the Russians said: “This must have something to do with the origins of petroleum.” It comes deep from within the bowels of the earth and through these geophysical ruptures, cracks or faults or whatever you want to call them – the Russians call it migration channels—like you have in the Gulf of Mexico. There BP evidently hit a huge migration channel that went very, very deep and they were not expecting that, so the whole thing went completely out of control – the oil is being constantly generated, and what you have to do is look for where it comes closest to the surface.

Now, that is not an easy thing, but it is certainly a scientifically based thing, and as I said: several very rigorous peer-reviewed international scientific experiments have been conducted that demonstrate the creation of hydrocarbons in laboratory conditions under the temperature and pressure conditions that you have in the earth mantle. This is granite rock that we are talking about, so it’s not the so called sedimentary rock near the surface, where the dinosaur remains are said to be buried, no, it’s far, far deeper.

Of course, I can understand what you have just said, but would you agree with me on this: it isn’t really important whether Peak Oil is real or not, because if Peak Oil was real, then the supply will decrease. If it wasn’t real but will be pushed through with political intention, then the supply will decrease, too.

FWE: No, I think that is a misleading formulation of the question, because you’re assuming that: “will be pushed through” means the entire world. That’s one of the reasons, as I have pointed out in my new book, that the same elites, that Steven Rockefeller drafted the “Earth Charter” along with Maurice Strong, who is a Rockefeller protégé, one of the reasons that the Rockefeller faction in the Anglo-American world increasingly began to prepare the Global Warming fraud as a fall-back option, a “Plan B“ in case the Peak Oil myth was no longer credible, simply to have wars on every part of the earth in order to expand Pentagon control—Full Spectrum Dominance as they term it.

Take for example Darfur in Sudan, where the Chinese have tapped into what looks to be a giant oil reservoir that goes from Southern Sudan into Chad and Cameroon, it’s a huge reservoir and some people think it potentially could be a new Saudi Arabia. I can’t say that for sure, but I have seen maps and it’s apparently enormous. And that’s clearly the reason why suddenly Colin Powell declared that the Sudan government was guilty of genocide in Darfur. At the same time the CIA and arms merchants of death were funneling arms to the government of Chad for their mercenaries to go over the border into Darfur and start shooting up innocent civilians in order to give credibility to the genocide charges.

The global warming, I think, is the fall-back option, if you can’t convince the world of scarcity though Peak Oil, because suddenly oil giant fields are being discovered left and right. For example, in Cuba offshore, the Russians are helping the Cubans to develop a major field there. It looks like the Caribbean Basin, which was the site of a meteorite collision hundreds of millions of years ago likely, that that’s one of the largest potential oil areas on the planet – and that’s one of the reasons why this oil spill in the Gulf of Mexico went completely out of control, that wasn’t a normal oil strike. But the U.S. is determined to militarize and control the Caribbean Basin.

Another example is the offshore Brazil, gigantic oil discoveries there. So there are too many of these things popping up to keep the world convinced that Peak Oil is real and that we have to pay $ 300 per barrel of oil and start turning the lights out and burning candles.

Like many of the Peak Oil advocates say. They say: “Cuba is the model, because they don’t have automobiles, they have to rely on a non-petroleum economy because of the embargo, so we have to go to this kind of economy in the United States and Western Europe to compensate for the running out of oil.” Well, if you think about it, global warming accomplishes the same goal for these elites. If the world swallows the fairy tale that oil from transportation vehicles or from coal fired plants emissions of CO2 are the cause of something called the greenhouse effect, the so-called greenhouse gases, and that that is gradually warming the earth towards what Al Gore calls the “tipping point,“ and once we hit the tipping point then this will be the end of the road for the world.

Well, no climate model takes into account the one major influence on world climate: solar flares and solar activity, our Sun, as has been pointed out by the few courageous independent scientists whose careers haven’t been bought and paid for by BP or Wall Street banks. Wall Street controls the newly-founded carbon trading exchanges in Chicago and London—the Chicago Climate Exchange and the London European Climate Exchange. They control them via the ICE, Intercontinental Exchange in Atlanta Georgia that was created by Wall Street to control derivatives trade in things like oil.

So the Peak Oil myth just isn’t working, and that’s why we see this renewed massive propaganda attention from the elite media on global warming as “the greatest threat to mankind.” That threat looks a little bit dubious right now after we have experienced the worst winter in a hundred years sweeping across Europe and North America.

So the idea that the Pentagon can control all oil everywhere has reached its peak, if you want to call it that. They simply can’t control it. There is too much oil out there, there are too many accidental discoveries, and they are overstretched. It’s the “Imperial Overstretch,” as Paul Kennedy called it years ago (xiv).

So at least the American Empire – or the American Century – has reached its peak?

FWE: That’s one way to put it. The project that created the American hegemony after World War 2 was financed, lo and behold, by the Rockefeller’s, the Rockefeller Foundation, and carried out by the New York Council on Foreign Relation, which by that time was totally dominated by the Rockefellers…

You’re talking about the “War and Peace Studies”?

FWE: Yes, and in the “War and Peace Studies,” Isaah Bowman, who was one of the leaders of that project, an American geographer, and the other participants concluded – and that was in 1939, the project began even before Hitler’s panzers rolled into Poland – there’s coming a second world war, it will be a world war, not a European war. And America will emerge from that war as the world’s leading power.

But, they said, we will not make the mistake as the British and the French did: we will not call it an empire. American people don’t like to think of themselves as imperialists like the British. We’ll call it the extension of democracy and democratic freedoms. We’ll call it the spread of the free-enterprise system to other parts of the world, and under that cloak we will build our power as the unchallenged supreme power on the planet. And that, I have to say, was one of the most brilliant public relations propaganda ploys in modern history to not call it not an empire.

But it is de facto in every sense of the term, the domination of the Pentagon and the control is every bit as real as the British Empire, even more so.

Can you tell us at the end what you see unfolding in the next years? Will for example the petrodollar system completely end? And what do you think will happen at the precious metal markets?

FWE: What I see unfolding in the next years is this: We are – and have been since, I would say, approximately the early 1970′s – in the midst of an epochal tectonic shift in global political power, of the global power balance. The future – for the European Union countries as well for much of the world – lies in the future of nations or countries of Eurasia. Right now the European elites are clinically schizophrenic: half of their allegiance is still to cling on desperately to the Atlantic-Alliance with the United States, the other half of their reason knows rationally that the future lies in the East – whether it’s Russia, whether China, whether it’s the numerous countries in between in Central Asia, in the Middle East and as well as parts of Africa.

Europe has every potentiality, every possibility and every resource to create an economic Renaissance like the world has never seen. If the Europeans continue to hitch their wagon to the NATO-American star, then the prospects for Europe are grim indeed.

What we’ve seen with the currency war since the end of 2009, the dollar against the euro, that was initiated just at the point the Chinese government was talking about shifting major reserve assets out of the dollar into other currencies – which means the euro – and just at that point where the scale of the federal deficits and federal debt dimension as far as the eye can see going forward was just astronomical under both the Obama and Bush administrations and beyond, just at that point where the dollar experienced a systemic crisis, low and behold Greece explodes under the radar screens of the world hedge funds and currency traders, and that immediately focused on the euro-question, and then it turns out that the advisor to the conservative Greek government in the 2002 period, when they managed to fraudulently come into the euro-zone – something that never should have been allowed, but it was – has been Goldman Sachs. Goldman Sachs advised them on sophisticated derivative swaps that allowed them to hide their public debt and qualify under the Maastricht Criteria. Goldman Sachs today remains – during the entire Greek crisis that erupted in late 2009 – to my information, still the advisor to the so called social-democratic Papandreou government. So they have access to the most sensitive fiscal data and other data of the Greek government.

They play a Trojan Horse role here?

FWE: It would seem so that they play clearly a Trojan Horse role as does JPMorgan Chase and other Wall Street “Gods of Money” banks. The euro right now is in a fundamental crisis, this isn’t going away. The plan is to escalate this – the Soros Fund Management Group and several of the largest hedge funds actually had a meeting in New York to discuss this according to what was leaked to the press in early 2010. (xv) You can bet that they were discussing a concerted attack on euro-zone vulnerabilities – where is the next Achilles Heel? Well, Ireland! Who is the advisor to the Irish government, since they foolishly gave this blanket guarantee to the bankrupt Irish banks, which have gone into the Wall Street casino full scale, AIB and so forth? Well, it turns out that N.M Rothschild’s of London is the advisor on the 77 billion Euros of debt that the Irish government suddenly acquired by taking over those fraudulent banks in Ireland.

The Irish government, ironically on the advice of Merrill Lynch which itself went under and had to be bought out, have turned the banking crisis into a sovereign debt crisis. Very, very sophisticated, clever move there.

The former Irish government was incredibly compliant to the wishes of the international banking community. George Soros even wrote in December 2010 an op-ed in The Financial Times, where he said: “It is more important to save the banks than to save sovereign debt (xvi).” That gives you an idea where Soros is. He is also an advocate of this European wide and not country specific euro-bond emission, which one should resist tooth and nail.

But be that as it may: the future of the euro-zone and the European Union, to my mind, is at a cross-roads over the next ten, twenty years, and that depends on what they decide vis-à-vis the future of their relationship towards Eurasia and their relationship towards NATO and the United States. The U.S. elites that control NATO aren’t going to give up, that’s obvious, without a huge fight. But that’s the fight on the agenda if we want to have a world worth living in, in the next decade.

Now, with regard on the petrodollar system: I think that can be broken today quite simply by bilateral de facto barter deals between China and Saudi Arabia or other oil countries like Iran, consumers and producers, without the intermediary of the London International Commodity Exchange, the ICE Futures, or the NYMEX in New York, or the Dubai Exchange, which is controlled by NYMEX – which in turn is controlled by Morgan Stanley, Goldman Sachs and the big money center banks in New York and London. If that control can be broken – and it is a very elaborate system that the Anglo-American Establishment has built up since World War 2 to control the price of oil – it certainly is possible to break that. It’s a political decision. At that point oil will cease being a weapon of geopolitical financial warfare and will become a normal commodity whose price is based on supply and demand, which it isn’t now.

The precious metal markets: We are in my mind very close to a breakout in the price of both in gold and silver. It hasn’t happened yet, but it will. They will substantially climb. The problem with precious metals is that the two major contenders against dollar hegemony, as you know yourself, China and Russia, have pathetically low reserves of gold in their central banks. If they were go to a bi-metal system, gold and silver, that could function. The Chinese, I believe, and perhaps also the Russians, could have substantial reserves of silver. China’s currency used to be based on the silver reserve system, as in many countries of the world, before the Opium Wars – and the Opium Wars were designed by the British back in the 1840′s literally to loot the silver treasury of the Chinese Empire, bankrupt the state and force them into trade dependence on the British.

Okay, one last question related to silver. What are your thoughts on JPM’s role in the silver market?

FWE: Well, if you go back to the stock market crash of October 1987, this is amply documented and I know it from friends who were there on the exchange trading floor during the 23 per cent one day drop in the Dow: at that point Greenspan as Chairman of the Fed sat down with JP Morgan and used JP Morgan as a conduit for an open checkbook of money from the Fed to go into the stock futures market through Chicago. And on the next open day of trading, to buy like there was no tomorrow on the futures for minimal amounts of money compared to the cost to buy actual stocks. And through the futures being driven up, that started to drive up the underlying stock prices on the New York Stock Exchange, and then of course the rumor mills started: JP Morgan is buying, the Big Boys are buying, the worst is over, this is an overreaction, etc.

Well, it seems fairly clear that JP Morgan Chase is playing a similar role today in the silver market, perhaps some other banks in gold. But if gold and silver really start to breakout, then it’s a new ballgame vis-à-vis the dollar, and they know that.

The power of the United States as the world’s sole superpower rests on two pillars – keep this in mind, Lars. This isn’t generally discussed, but it is essential to understand how the American Establishment functions since World War 2. The two pillars are: America as the sole unchallengeable military hegemony, and the second is the U.S. dollar as the world reserve currency. If that’s gone, the United States you can kiss goodbye as a functioning world power. The Wall Street money center banks know this, as well as the City of London and others.” http://www.theundergroundinvestor.com/blog/2011/03/a-history-of-rigged-fraudulent-oil-prices-and-what-it-can-teach-us-about-gold-silver/

I highly recommend reading the entire article with Mr. Engdahl, whose knowledge on these subjects is exceptional. The crime in plain site here is of course the suppression of  scientific knowledge, to allow those at the top of the elite order to control and manipulate every essential aspect of modern life, by fraud, lies, deceptions and every other dirty rotten trick they can squeeze out of the “energy policies” which effectively determine the quality of life for people here in America and by extension around the world.

The greed of power knows no limits when it is hidden behind a wall of secrecy masterfully interwoven with carefully crafted public “propaganda” passed off as genuine, factual information. Such is the sheer boldness of the scientific lies it is no wonder such political fabrications require billions in support [spying on a mass-scale] functions/operations say like black-mail, palm greasing bribes and other wretched, immoral dealings to ensure the public never gets the fuller picture, much less, have a snow-balls chance in Hell of getting relief, or Justice, from these elitist crooks who have taken so much wealth from the Nation at large, other crimes of State pale by comparison.

Keeping people as divided as possible also contributes quite significantly to stopping any social movements which might actually threaten the status quo. Driving a deep wedge between the sexes, causing rifts between young and old follows right along with racial issues and political clashes since of all of these have a single factor in common. Such divisions keep the attention off the real culprits behind the woes so suffered. Even today people refuse to consider the depth of the vicious manipulations so unleashed to confound the real reasons that dream was more like jail bait after twelve beers too many.

The simple sad fact is people are much easier to control when they desperate, hungry and poor. But the more sinister fact is people overwhelmed with greed are easier yet. Do people really think it was just a coincidence such significant amounts of cash flowed through the ghetto’s across America to lure the most gullible and functionally foolish to embrace a lifestyle dressed up with flash and bling to make the criminal risks to easy to ignore? Sure lots of such outlaws made fortunes, but the less clever are dead, in prisons making fortunes for the corporate masters or so burned out they barely function at all. While the government fixes the rules against people the all-powerful money lords  sent out their corporate hordes to do what they always do SELL the next dream, and the one after that, like so many other trinkets, but these were and are lifestyles with severe consequences when the party is suddenly over.

Many people even now are about to get another shark bite from the housing scams er bubble lenders which came along to lure the unwary into a dream to good to be true:

Lenders seek court actions against homeowners years after foreclosure Kimbriell Kelly Published: June 15

“In 2011, Fannie and Freddie flagged 12 percent of 298,327 properties they had foreclosed on — more than 35,000 — for deficiency judgments in an attempt to collect $2.1 billion in unpaid mortgage debt, according to an inspector general’s report released in October from the Federal Housing Finance Agency.

“Pursuing these collections against borrowers we believe have the ability to pay but who have decided not to helps us minimize our losses, which in turn helps minimize taxpayer losses,” said Malloy Evans, an attorney and Fannie Mae’s vice president for default management. “And we think it’s our responsibility to try to minimize those taxpayers’ losses as much as we can.

Robert Van Order, who was a chief economist for Freddie Mac from 1987 to 2002, said he did not believe that targeting deficiencies would produce much revenue.

“That may be a good business decision, but I don’t think that’s a huge part of the market,” Van Order said. “Is it worthwhile to hire some lawyers and some people to try to do it? It might be, but it’s not going to make or break the companies.”

“Deficiencies are less lucrative than some other types of debt recovery work. They tend to be larger and more complicated and more paperwork-intensive than, say, a medical or credit card bill,” said Michael J. Cramer, president of Dyck-O’Neal, a Texas-based firm that has been collecting deficiencies for 25 years. “However, deficiency recovery represents an important facet of the debt recovery industry.”

Fannie is also pursuing defaulting homeowners as a “deterrent” for people who might be thinking about defaulting in the future, Van Order said. Fannie Mae has hired debt collectors to pursue people in 38 states and the District, while Freddie Mac has taken homeowners to court in 17 states and the District.” http://www.washingtonpost.com/investigations/lenders-seek-court-actions-against-homeowners-years-after-foreclosure /2013  /06/15/3c6a04ce-96fc-11e2-b68f-dc5c4b47e519_story.html?tid=pm_pop

The term taxpayer sure is used with great emphasis by pundits, policy hacks, officials of every stripe and of course just about anyone griping about the various larcenies involving this magical form of money. Taxpayer money is so special why it has to be spun from the finest gold— how else to explain the extraordinary relationship which can boil the blood of the many for the benefit of the few. Taxpayer money does not exist unless it is being spent and usually in ways which can make trillions promptly vanish in a puff of blue ink.

How amazing is it that such impossible sums of taxpayer money always works in the favor of those who seem to need it the least; while the impossible demands of its repayment requires industrial strength methods for sucking out every last dime from those already impoverished. The system is engineered to be as brutal as possible, while playing the ethical game with rules strictly favoring the corrupted institutions which are protected from lawful recourse of illegal actions so engaged. The financial gig is rigged and politicians dance around the truth as if that was the only job they actually get paid to perform.

The dream is a nightmare for so many today it is no wonder so many simply give up and allow themselves to drift off into drugs, booze and any other past-time which provides a wall of comfort from the harsh reality that the living standards are heading downward right along with expectations of a better future. A contrived future which only exists due to the suppression of knowledge and the overt manipulations necessary to keep monetary resources out of the hands of capable people. How equitable is it that the system gets money for nothing and the people get the debt for a life-time?

This system was not the only possibility, it is only the one which allows financial servitude to be the norm and not the exception. People are no longer being directly crucified on a cross of gold— they are being racked ever so slowly over a digital bit of debt–itself a racket of the lending toads whose un-ethical mis-representations of the system requires yet another deep, multi-level bureaucratic racket just to keep the lies from burying them where they stand. All of this to make these fools an empire— their dream come true and damn anyone who might get in their way.

One can ask the question of why it is a house must cost for more in interest than labors and bricks alone. But that answer from the lenders lips is grossly un-scientific and devoid of positive truth. With so many advancements in materials and engineering it is really quite strange the homes of Americans never saw a single reduction of price due to economy of scale. But of course so long as the credit notes forced upon the people, are always paid in diminishing value, such expenses must rise. How strange it is the rules never work in the opposite capacity and wages are never paid in a Labor Unit of parity with the original Unit of Account.   Too lawful apparently to even contemplate. Well, one of these fine days when the people are quite desperate for something to save them from the wolves howling at their door, perhaps they will remember there are solutions to these vexing problems. The answers will just not come from the same mouths whose tongues are so forked it is a miracle they can speak at all.


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