Benedict Benjamin Bernanke

Do any of you ever wonder who this guy is really working for, anyway? Well, in case anyone cares, here’s what he’s supposed to be doing:

Mission

The Federal Reserve System is the central bank of the United States. It was founded by Congress in 1913 to provide the nation with a safer, more flexible, and more stable monetary and financial system. Over the years, its role in banking and the economy has expanded. Today, the Federal Reserve’s duties fall into four general areas:

• conducting the nation’s monetary policy by influencing the monetary and credit conditions in the economy in pursuit of maximum employment, stable prices, and moderate long-term interest rates
• supervising and regulating banking institutions to ensure the safety and soundness of the nation’s banking and financial system and to protect the credit rights of consumers
• maintaining the stability of the financial system and containing systemic risk that may arise in financial markets
• providing financial services to depository institutions, the U.S. government, and foreign official institutions, including playing a major role in operating the nation’s payments system

Appearances Vs. Realities

Just last week, the good folks over at Barclays Bank chimed-in with this assessment of Benedict Bernake’s efforts to-date:

“Barclays Capital said in its closely-watched Global Outlook that US headline inflation would hit 5.5pc by August and the Fed will have to raise interest rates six times by the end of next year to prevent a wage-spiral. If it hesitates, the bond markets will take matters into their own hands. "This is the first test for central banks in 30 years and they have fluffed it. They have zero credibility, and the Fed is negative if that's possible. It has lost all credibility," said Mr Bond.”

Perhaps Mr. Bond [James, perhaps?] should have mentioned that the Fed and the old lady of Threadneedle St. [The Bank of England] have the same ownership. Not to worry. Surely there’s room for both of them “under the bus.”

Who Owns the Federal Reserve?

The private ownership of the Fed is a closely guarded secret. However, it is generally believed that the following banks/families have at least some stake:

1. Rothschild Bank of London
2. Warburg Bank of Hamburg
3. Rothschild Bank of Berlin
4. Lehman Brothers of New York
5. Lazard Brothers of Paris
6. Kuhn Loeb Bank of New York
7. Israel Moses Seif Banks of Italy
8. Goldman, Sachs of New York
9. Warburg Bank of Amsterdam
10. Chase Manhattan Bank of New York.

Now, the long answer is more complex. Have a look at these charts (click here).

According to the information presented there (assuming not much has changed since 1976) it would appear that the Bank of England actually owns the Federal Reserve and the IRS.

The Bank of England is, in turn, almost certainly owned by the Rothschild family, though if they saw fit to sell shares, they would not be required to report this since these are privately traded companies we're talking about.

Please note that to determine who controls these institutions, it's not enough to simply list the shareholders. One must also take into consideration who, in turn, owns the shareholders themselves. Furthermore, the influence and connections of the chairmen cannot be ignored, as these men are the ones making the decisions.

Then again, perhaps the good folks over at Barclays Bank are simply getting upset with recent declines in the value of their investments [data compliments of Great Red Dragon]:

The dudes at Barclays really do seem to have their fingers in quite a few jars, ehhhh?

I’m sure it’s only coincidence that their chairman, Marcus Agius, is married to Katherine (born 1949), daughter of Edmund de Rothschild of the Rothschild banking family of England, with two children, and has a close involvement with the Rothschild family estate, Exbury Gardens in Hampshire. I guess running a family business isn’t all it’s cracked up to be.

It seems that Barclays [or was that Rothschild?] isn’t the only one that Sir Benedict of Bernanke has manage to rankle lately:

IMF finally knocks on Uncle Sam's door

….Australia does not have a President's Working Group on Financial Markets, commonly known as the Plunge Protection Team, that allows the US Government to prop up the markets by buying shares. But to imagine the IMF investigating the US financial system is unthinkable, or was. But, at the weekend, Der Spiegel reported that the IMF would conduct a full investigation into virtually every aspect of it.

Der Spiegel wrote that the IMF had "informed" Federal Reserve chairman Ben Bernanke of plans that would have been unheard of in the past: a general examination of the US financial system. The IMF's board of directors has ruled that a so-called Financial Sector Assessment Program is to be carried out in the US.

This, Der Spiegel wrote, "is nothing less than an X-ray of the entire US financial system", adding that "no Fed chief in US history has been forced to submit to the kind of humiliation that Ben Bernanke is facing".

The fact that the IMF is knocking on the very doors of its parents and waving legal papers about who lost the house, the car and the kids will, if the past is anything to go by, be buried in the US by pom-pom waving on CNBC telling all what a great time it is to buy.

It is vital that everyone understands what has been done to “our” financial system. Furthermore, it is especially vital that everyone understand that, historically, ownership of precious metals has helped to insulate folks from the systemic financial difficulties we are now facing.

Are you adequately protected?

If you are still having trouble getting your head around this, just remember…

“We shall have World Government, whether or not we like it. The only question is whether World Government will be achieved by conquest or consent.” – James Paul Warburg, whose family co-founded the Federal Reserve - while speaking before the United States Senate, February 17, 1950

Today’s Market

Overseas equity markets began the week on a negative note with Japan’s Nikkei Index falling 62 points to 13,481. North American markets ended the day mixed with the DOW ahead 3.5 to 11,350, the NASDAQ slipping 22.65 to 2,292.98 and the S & P gaining 1.60 to 1,280. NYMEX crude oil futures finished a volatile session up .33 at 140.54 per barrel.

On foreign exchange markets the U.S. Dollar Index gained .23 to 72.53.

In the interest rate complex the benchmark 5 yr. government bond finished the day at 3.32% while the 10 yr. bond ended the day at 3.96%.

Precious metals ended the day mixed with COMEX gold futures losing .70 to 926.90 per ounce while COMEX silver futures lost .08 to 17.43 per ounce. The XAU Index gained .76 to 195.25 and the HUI fell 1.18 to 449.88.

On tap for tomorrow, June Auto sales – last reported 5.3M and June Truck sales – last reported 5.1M. At 10:00 a.m. May Construction Spending data is due – expected -.5% vs. prior -.4%. Also at 10:00 a.m. the June ISM Index is to be released – expected 49.6 vs. prior 49.6.

Wishing you all a beautiful last evening of June and a pleasant tomorrow and a happy 4th of July!