Grim Economic Prospects for 2012: How the Federal Reserve Overshadows the European Banking System

Grim Economic Prospects for 2012: How the Federal Reserve Overshadows the European Banking System

by Bob Chapman

What does one write about between Christmas and New Years? Things are usually pretty quiet, especially in Europe. As a result we’ll give you a little about this and a little about that.

Public institutions worldwide are fighting ratings downgrades foremost of which is France, the US and, of course, sovereigns and banks worldwide. Miracles of miracles finally the rating agencies are doing their jobs. The caper they pulled in collusion with Wall Street in rating mortgage securities should have put them all in jail for life. We’ll call these efforts makeup time for their previous sins, which they never were prosecuted for. The complaint is their methodology is unreliable. We can assure you they know exactly what they are doing. The French want them to cease and desist. That is not going to work, because the French government and banks have very serious solvency problems. Central bankers and sovereigns always believe they are above the law. Eventually they all pay the price of greed and corruption.

Early in December the BIS informed the UK’s policy of quantitative easing, the creation of money and credit, was not working. The US central bank, the Federal Reserve, has been doing the same thing for 12 years, so we ask why has not the BIS cited them as well? Horrors of horrors just two weeks ago the ECB, European Central Bank, decreed that they were going to implement QE as well. We ask, why no BIS comment regarding the Fed and the ECB? Might it tend to bring both systems down? All of these central banks and sovereigns playing this game know that it won’t work, but they play the game anyway buying time to hope to create an opening to bring about a change in direction, which never comes. That is why we have well planned wars to distract the people from the real economic and financial problems and, of course, to relieve population problems. If you doubt us we refer you to many of the writings and statements regarding population control via Foreign Affairs, the literary organ of the CFR, the Council on Foreign Relations, or the Trilateral Commission, along with their statements as well. We might add Obamacare, which will be implemented in one year, and the “death panels”, which will become part of your life and death. Wait until you are told that your beloved mother and father’s illnesses will cost too much to treat and they will be allowed to die. We are not meandering and you cannot make such stuff up. These are the thoughts and actions of our leadership, which control your lives from behind the scenes.

The euro zone may have publicly made it clear it is their show and that they need no assistance from, of all places, the Bank of England nor the Federal Reserve, yet they mimic them, now having implemented their own QE, accompanied by $1 trillion in swap assistance from the Fed. We see the words and ideas, but the reality is that behind the scenes the Fed is pulling the strings. You judge them by what they do not by what they say. In view of their newfound responsibilities we still find the rating agencies far behind the curve, due to pressure from banking and the political structure. Keeping that in mind investors have to rely on their own research and not that of an intimidated rating system. Besides rating changes are discounted months in advance by other professionals.

All of the events you have seen in the UK, US and Europe were predicted by us. The revelations of the past year were yesterday’s news. All three entities have committed themselves to the furtherance of hanging paper whenever and wherever they can. We saw the euro crisis before it happened, so it was of no surprise to readers. The specialty media and the financial sector completely missed the boat. All three entities have proven themselves incapable of any plan or initiative of solving their problems. They just keep the game going knowing the result and refuse to purge the system, because it will rob them of their power base. This is why heretofore the PTB have not allowed any attacks verbally on their central banks, with the exception of the US. Over the next three years that will change and the Fed’s monetary work will be passed back to the US Treasury. If Ron Paul is elected it will probably happen in 2013. An end to “The President’s Working Group on Financial Markets” will precede it. That will end official market manipulation and kill the control that has been exercised by the owners of the Federal Reserve for the past 100 years. The termination of both entities will be important beyond belief.

The ECB last week began the process of making loans worth $640 billion to 523 banks. For collateral they’ll accept anything including what is known as toxic waste, virtually worthless bonds containing mortgages and the bonds of near bankrupt nations. In essence the ECB is doing what the Fed has been doing and calling it something else. As you can see almost all bankers and politicians are deceivers. This is a long-term financing operation, LTRO, which directly funds, whereas the Fed funds via market intervention. The ECB expects borrowers to bolster their balance sheets and to buy Europe’s version of toxic waste, sovereign debt, out of the market. We do not expect the latter to perform as perceived, even though with little risk a bank can buy Spanish and Italian bonds and net 4%. At the end of February more loans will be offered to repeat the process. What you are seeing is the leveraging of the purchase of foreign toxic waste with each succeeding auction. This is an end run on quantitative easing. It could easily hand banks a net 30% return for doing virtually nothing, at the same time bail the banks out, these very same banks that caused all these problems in the first place. It is called double your money in three years. A gift from euro zone taxpayers. This also shows you how easy it was to end run German taxpayers that wanted all of this stopped. This is an extremely important point. It shows you how little the bureaucrats in the EU and euro zone think of the constituents in any of the member countries.

The real hook in all of this is that it is being sold as a sovereign bailout of six countries in serious financial trouble. That it is, but what it really is, is a bank bailout similar to many other programs of the last three years. These 3-year loans can be terminated in one or two years, but who would want to do that? It is a license to steal; borrowing at 1% and investing in sovereign debt at 4% to 5%. The ECB will have a hard time weaning banks off such a prohibited concoction.

Over three years a bank can make 70% to 90% with the ECB, which is the euro zone taxpayer, taking almost all the risk. This deal from the ECB to the banks is far more blatant than the previous antics of the Fed. This arrangement, of course, leaves enormous leeway for officers of these banks to accumulate massive bonuses. These officers are raking in rigged profits, so why should they not ingratiate themselves at the public’s expense? We figure with the next tranche of funds comes up at the end of February the demand will be giant. It could double to a net $2 trillion and then if that wasn’t enough the banks will leverage the proceeds 9 to 1 to perhaps 35 to 1. How is that for a liquidity boost? Incidentally, the ECB and banks can do this indefinitely. That means a reversal of the recession in Europe and perhaps in other regions as well. For now the liquidity problem in Europe has been solved. The flip side is major inflation. From a banks viewpoint a small price to pay, as they rake in the profits and at the same time solve liquidity problems for the six problem nations.

A solution made in heaven that was prearranged with all the bankers. As we said, $9 trillion or more can be created and unless withdrawn from the system over three years we could see serious inflation. The ECB and the bankers are not going to tell you all this, and 90% of economists will miss these important points. Following this thrust of money we have seen Greek elections thrown ahead into April to give the bankers more time to make a deal to prevent Greek default, although the bankers know whatever deal they make it may be rejected by a new government. While this transpires the European economy will recover and Greece may stick with any deal that has been made. Greece’s not leaving the euro would take off some major stress on the euro. We won’t know what will transpire with Greece until late in April. This creation of money and credit over the next three years, unless money is drained from the system, could in and itself destroy the euro. These funds are far in excess of what the Fed and the Bank of England have created.

What is the answer to this course set by Europe reminds us we have to protect our wealth. It won’t take long for gold and silver to react to this giant monetization. In fact, recognition should begin and be manifest in the market beginning in the New Year. Manipulation, or not, their prices are going higher, especially from these low levels. At current levels investors should be loading up on gold and silver coins, bullion and shares, especially shares, which have been beaten down very hard.

We mention over and over again that the Federal Reserve has been in part bailing out Europe. This is the second time they have done this in concert with other central banks. Last time it was $500 billion in swaps and this time we are told that the swap figure is $1 trillion. We suppose we will find out in time. The Fed, which can lend directly, goes through the ECB, because they will guarantee the return of the funds, not only to the Fed, but also to other supposedly active lenders such as the Bank of Japan, the Bank of Canada, the Bank of England and the Swiss National Bank. The lenders are charging .50% to lend the funds. The Fed and other central banks are trying to obscure what they are doing after the revelations pertaining to massive lending by the Fed previously as exposed by the GAO under Dodd-Frank.

The currency swap is not technically a loan and does not show up on the Fed’s books as a loan. By the ECB borrowing dollars from the Fed it keeps the ECB from having to print more euros. This way the ECB lends dollars it has borrowed to its member banks. These banks are under severe pressure by their governments to purchase new and outstanding government debt. There is no doubt this will happen, but in what amounts we cannot say.

Thus, we see $638 billion the ECB has in hand plus perhaps $1 trillion from the Fed and its helpers, which is being served up to 523 banks. We then have to remember that this is a fractional banking system, which historically lending at 9 to 1 is prudent. If used that would be some $15 trillion, certainly enough for Europe to survive on. As you can see, the funds available could be endless.

Also, as you can see all is not the way it seems to be. 99.9% of Americans do not know what is going on and we’d be surprised if 35% of Europeans understand. In the US there has been a media blackout and in Europe very light coverage. The banks simply do not want anyone to know what they are up too. As we display these numbers it should be kept in mind that all these countries are loaded with unpayable debt, so what they are doing is going further into debt to pay off existing debt. This approach is generally recognized as a Ponzi scheme – we might also add all the derivative exposure these banks and government have.

The privately owned Central Bank of the US, the Federal Reserve, has absolutely no authority to bailout Europe, which they have been doing for three years and no one says a thing about it. Less than a month ago, Fed Chairman Bernanke said he has no authority to bailout Europe and he had no intention of doing so.

This is why the Fed needs to be terminated and its functions returned to the US Treasury. The Fed and other central banks running the world and they shouldn’t be. Mr. Bernanke has promised more transparency and two weeks later we get more subterfuge. There is no question Ron Paul and we have been right for over 50 years. Elect Ron Paul and get rid of the Fed.

This past week the ECB balance sheet soared to $3.55 trillion via new lending. The increase in bank lending by the ECB rose $278 billion to $1.143 trillion. That was at a 1% interest rate.

For those of you who thought Europe was improving, Spanish residential mortgages fell for an 18-month in October.

Home loans fell 43.6% year-on-year. Spain has 700,000 unsold homes sitting empty. Bad loans are at a 17-year high of 7.42%. Spain’s recovery, as that of the US, will be long and arduous.

Bob Chapman is a frequent contributor to Global Research. Global Research Articles by Bob Chapman

I’M WAITING TO HEAR OUR FREE MEDIA- EXPLAIN TO THEIR LOYAL….SERFS….THAT THE FED IS INVOLVED WITH THE EU…..The privately owned Central Bank of the US, the Federal Reserve, has absolutely no authority to bailout Europe, which they have been doing for three years and no one says a thing about it. Less than a month ago, Fed Chairman Bernanke said he has no authority to bailout Europe and he had no intention of doing so.


ravenise00 on 27 Nov 2011

When Germany threw out the private central bank imposed upon Germany by the Treaty of Versailles at the end of WWI which resulted in this runaway inflation where it was so bad people were carrying around their money in wheelbarrows and thieves would take the wheelbarrow and leave the money behind… that’s how bad the inflation was. So the German government kicked out the private central bank and they started issuing a state issue value based currency that did not accrue interest to the private central bankers and it turned the life of the German people around so dramatically that the media called it “the German miracle.” The German economy was blossoming, they were the only country that wasn’t enslaved to a private central bank… they were coming this amazing industrial power house because their money was circulating through building factories and jobs, it wasn’t just building palaces for the money junkies. Of course, the global bankers cant have that… if the rest of the world see how well this works without a private central bank they will want to get rid of the private central banks around the entire world. The bankers organized a global boycott of Germany to try and sabotage and destroy Germany’s value based currency and drive them back into submission to the private central banks. This basically set the stage for World War 2 and that didn’t really work out to well for anybody… except of course for the bankers who loaned both sides money for bombs and weapons and bullets… and then more money after it was all over for reconstruction and repair. So everybody basically got out with what they had before WW2 only now they were hideously in debt to the bankers. Germany only paid off their debt from WW1 a few years ago… so OF COURSE, we’re ready for a new world war… gotta plunge em back into debt.

So here we are again with the German government trying to do what is best for the German people… what works best for the German peoples economy and wealth and comfort and once again the private central bankers are saying we’ve got to boycott them, we’ve got to shut them down… we’ve got to shove them back to their rightful place, beneath the private central bankers!!!. In the process of course, they are driving us one more step towards a new World War. But not to worry… the bankers are there ready with their checkbook to loan you all the money you need for bombs, bullets, and weapons… and after its all over and someone won and someone lost (and it doesn’t really matter who) they’ll be there to loan you more money to build back up what you had before it was destroyed in the war.

See how it all works here?

Germany is doing right by the German people… that’s what the German government is SUPPOSED to do, and the media is demonizing them because they won’t go with this global fascist dictatorship model.


Now apparently there is yet another renewed campaign to free Jonathan Pollard… the man who single handedly undermined Americas nuclear deterrent and made us all vulnerable to an attack by the Soviet Union had they chosen to do so… and Pollard took this information… gave it to Israel, Israel turned around and gave it to the Soviet Union in exchange for increased immigration quotas. This is supposed to be our friend in the middle east. That nuclear deterrent, whether you agree with nuclear weapons or not… and I think the world would be better off without them. That nuclear deterrent cost my parents generation 5 trillion dollars to build, and that was back when a trillion was really a lot of money. People didn’t even talk with that many zeros. 5 trillion dollars, we’re still making payments on that… and it was all there to make sure we would not be attacked by the Soviet Union. Between the time Israel gave that information to the Soviet Union and the treachery was discovered and corrected… had there been a nuclear war with the Soviet Union, the United States would have LOST… but Pollard supports say he’s such a nice Jewish boy… really he’s suffered enough.

No he hasn’t, he should have been shot. When the Rosenberg’s gave the secret of the atomic bomb to the Soviet Union they we’re executed. Pollard’s in the club fed, apparently he is roomies with Bernie Madoff with the loot. They are trying to get everybody to call Obama and call for Pollards release…

I think we all got to call Obama and say string him up! Firing squad… little bullets. – Rivero

Michael Rivero of
Watch entire 2011-11-22 Broadcast Here:

News & Politics


The following figures are typical of the increase in German production, progress and living standards between 1932 and 1937, and are taken from a three hour reported addressed by the German Chancellor.

“In 1932, before National Socialism acquired power, the German national income amounted to 45.2 milliard Reichsmarks. . . and in 1937 reached the round figure of 68 milliard Reichsmarks. In contrast to this increase in income the general cost of living index remained practically unchanged. In other words, while the national income increased by nearly 50% the increase in the general cost of living rose by only 4%.”

Five years of National Socialist industrial and economic activity show that:

Paper manufacture has increased by 50%
The manufacture of diesel oil has increased by 66%
The production of coal has increased by 68%
The production of oil fuel has increased by 80%
The production of mineral oil has increased by 90%
The production of artificial silk has increased by 100%
The production of Kerosene has increased by 110%
The production of steel has increased by 167%
The production of lubricating oil has increased by 190%

“The production of petrol and other motor fuels increased by 470%. Aluminium production by 570% and the production of Zellwoille by 2,500%.”

“We have been successful in increasing our foreign trade in imports from 4.2 to 5.5 milliard Reichsmarks and in exports from 4.9 milliard in 1933 to 5.9 milliard Reichsmarks in 1937.”

“After the USA, Germany today is once more the leading steel producing country in the world.” – Adolf Hitler


1932 1937
56,400 motorcycles 234,000 motorcycles
41,100 motor cars 216,000 motor cars
7,000 commercial vehicles 50,600 commercial vehicles
“Whereas in 1937 roughly five times as many motor vehicles were licensed as in 1932, the export of motor cars has increased eightfold as compared with the same year.”

“In 1932 German inland shipping conveyed 73.5 million tons which increased to 130 million tons in 1937.”

“German ocean shipping conveyed 36 million tons in 1932 and 61 million tons in 1937. The idle tonnage that was laid up along the rivers Elbe and Weser and along the German coast has completely disappeared.”

“German shipbuilding yards had orders for 22,000 tons in 1932. At present they have orders on hand for a total tonnage of 1,120,000 tons for merchant shipping alone.”

ROADS: “For the maintenance and development of German roads, including the super highways, the following sums have been spent.

1932: 440 million Reichsmarks
1933: 708 million Reichsmarks
1935: 1325 million Reichsmarks
1937: 1450 million Reichsmarks

“. . . the displacement of earth by far exceeds the building achievement of the Panama Canal.”

“The following large bridges were built. 6 bridges over the Rhine, 4 over the Elbe, 2 over the Oder, 3 over the Danube, 1 over the Weser, and 1 over the Pregel. In addition, 3,400 further bridges were built in connection with the super highways.”

“Every year a thousand kilometres of motor-roads will be opened until the greatest work in the history of mankind is completed.” (Adolf Hitler)

“340,000 houses were built in 1937 – twice the number built in 1932. Altogether 1,400,000 houses have been put on the housing market since the National Socialists acquired power.

In 1932, only 19 out of every 1,000 people in Germany owned cars as compared with 41 in France and 37 in Great Britain; today, however, the figure for Germany is 35 in every 1,000 as compared with 51 per 1,000 in France and Great Britain.

Total industrial production in Germany is today 144% greater than in 1932. Even the peak year of 1929 was exceeded as early as 1936, while today about 30% more industrial goods are produced than in 1929. The production of capital goods has risen much more strongly than has the production of consumption goods, being now four times as great as in 1932 and more than one and a half times as great as 1929.

Progress in the field of domestic raw material production has been even greater. Iron ore production has risen from an average of 843,000 metric tons for the first three months of 1932 to 1,226,000 metric tons in the first three months of 1938. This means an increase of 45%. Furthermore there has been great progress in domestic oil production. In 1938, staple fibre production has reached 155,000 metric tons as compared with 5,400 metric tons in 1933 and 102,000 metric tons in 1937.” (Adolf Hitler)

“In the sphere of economic life all action must be governed by one law; capital serves industry, and industry serves the people.” – Adolf Hitler
“German economic salvation has been brought about solely through the efforts of the German people and the experience they have gained. Countries abroad have contributed nothing to this.” – Adolf Hitler
“Germany’s economic salvation was due solely to the nation’s own efforts under its own leadership.” – Adolf Hitler
“We have made it possible, without gold and without foreign exchange, to maintain the value of the German mark. Behind the German mark stands the German capacity for work, while some foreign countries, suffocated by gold, have been compelled to devalue their currencies.” (Adolf Hitler)

“Today in May, 1938, the world around us suffers from the anxiety which the unemployment of millions brings with it. In Germany we begin to be anxious because we have not enough workmen.” (Adolf Hitler)


Germany’s reduced dependency upon imports and its phenomenal increase in productivity and exports provided Germany with an economic and social advantage with which neither Britain, the USA and the USSR could compete. Furthermore, severe social deprivation, the effect of the Great Depression, social unrest and economic uncertainty in these countries were in contrast to Germany which was experiencing an economic and social miracle. Germany had to be destroyed.

Hitler was well aware that Britain and America would seek to resolve their problem by initiating a trade war that would destroy Germany and grab its markets.

“The war was not just a matter of the elimination of Fascism in Germany, but rather of obtaining German sales markets.” (Winston Churchill. Fulton. March 1946)


“Uneasiness ruled in the House of Commons. A delegate of the Labour Party met with the British Foreign Minister Halifax on September 2nd, (1939) in the lobby of Parliament. ‘Do you still have hope?’ he asked. ‘If you mean hope for war,’ answered Halifax, ‘then your hope will be fulfilled tomorrow.’

‘God be thanked!’ replied the representative of the British Labour Party. (Professor Michael Freund)

“In Britain, Lord Halifax was reported as being ‘redeemed’. . . “He ordered beer. We laughed and joked.” (H. Roth. Are We Being Lied To?)

“Germany is too strong. We must destroy her.” (Winston Churchill, November 1936 to US General Wood.)

“I believe now that Hitler and the German people did not want war. But we declared war on Germany, intent on destroying it, in accordance with our principle of balance of power, and we were encouraged by the ‘Americans’ around Roosevelt.” (Sir. Hartley Shawcross. British Attorney General)


The terms of the Versailles Treaty and various other trade restriction impositions had put Germany at a trading disadvantage. Hitler’s Germany however turned the tables by adopting a system of trade-barter. In this way he effectively eliminated the international financiers and fixers, corroding their influence and giving Germany the trading advantages. The German system was so obviously superior that this unfortunately made war even more inevitable.

“The Nazi phenomenon arose from the German desire to avenge the defeat of 1918 and to find a place in the sun for the most dynamic of European nations.” (Hon. Major General Khub Chand. Indian statesman and diplomat. Doenitz at Nuremberg. A re-Appraisal)


Hitler’s Germany however turned the tables by adopting a system of trade-barter. In this way he effectively eliminated the international financiers and fixers, corroding their influence and giving Germany the trading advantages. The German system was so obviously superior that this unfortunately made war even more inevitable.


Hitler was never happier and more relaxed than when in the company of young people. “I have never met a happier people than the Germans and Hitler is one of the greatest men. The old trust him, the young idolise him. It is the worship of a national hero who has served his country.” – David Lloyd George, Prime Minister and Statesmen, Great Britain.

Economic and social conditions began to improve. Hitler’s Government by September 1936 had reduced unemployment from 6,014,000 (January, 1933) to less than 338,000 by 1936. National income had increased from 41 billion marks to 56 billions. German trade was prospering. Deficits of the cities and provinces had almost disappeared. Expenditure for armaments were minor.

Unemployment was eliminated mainly by:

1) Increased government spending on public works; infrastructure, railways, roads, public-building projects.

2) Indirect support to private works projects.

3) A sharp reduction in taxation to create incentive.

4) Reduction in taxation and increased state contributions to make employment more attractive.

5) Public good workfare schemes, (non-competitive) with private and government schemes.

The effect was an injection of increased wages into the national economy, increased consumer spending which in itself led to job increases. By 1936 there was a shortage of labour, especially in the building and metallurgical trades.


“The taxation of families, especially of those with numerous children, has been noticeably decreased.”


All workers (and their employers) were protected by a ‘Tribunal of Social Honour’, which laid down conditions of employment that were superior to any comparable legislation in the world. Except for reasons force majeure it was illegal to dismiss an employee, al of which including employers had recourse to independent mediation by tribunal.


“We have laid firm foundations for the new State: we have sown seeds that have sunk deep. We have won millions upon millions of men for the ideas on which this State is based; we have introduced them to the life of this State, always in the conviction that it is not laws which protect a State; it is the living will, the faith, the confidence, and the courage of a people which are its true protection.” (Adolf Hitler)

“The national State divides its inhabitants into three classes: State citizens, State subjects, and foreigners. It must be held in greater honour to be a citizen of this Reich even if only a crossing-sweeper, than to be a king in a foreign State.” (Adolf Hitler)


“We have not broken down classes in order to set new ones in their place; we have broken down classes to make way for the German people as a whole. Our education also trains men to respect intellectual achievement: we bring one to respect the spade, another to respect the compass or the pen. All now are but German fellow-countrymen, and it is their achievement which determines their value.” (Adolf Hitler)

“What is necessary is to teach each class and profession the importance of the others. All together form one mighty body; labourer, peasant, and professional man.” (Adolf Hitler)


“All work which is necessary ennobles him who performs it. Only one thing is shameful – to contribute nothing to the community.” (Adolf Hitler)

“Nothing falls into a man’s lap from heaven. It is from labour that life grows.” (Adolf Hitler)

“Social honour recognises no distinction between the employer and the unemployed. All of them work for a common purpose and are entitled to equal honour and respect.” (Adolf Hitler)


Was based on the concept of ‘one for all and all for one.’ All German workers received a pension and insurance in the event of sickness or disability. Whilst some of these rights are taken for granted today, it should be remembered that at the time, such social protection was unheard of outside of Germany.


Child labour was prohibited, hours of work regulated (especially for expectant and new mothers), safe working conditions provided for, persons between 14 and 18 years of age prohibited from working in excess of 8-hours daily; night work for young persons similarly prohibited, paid holidays of persons below 16 years (15 working days), above 16-years (12 working days); usually increased to 18 days without regard to age.

“I have heard of no instance where workers had lost important rights or amenities.” – H.Powys-Greenwood. Hitler’s First Year.

“Good work is undoubtedly being done towards eliminating corruption in public and business life, and administration is being reorganised on more efficient and economical lines.” (H. Powys-Greenwood. Hitler’s First Year)

“The whole of education should be designed so as to occupy a boy’s free time in cultivation of his body. He has no right to loaf about idly; but after his day’s work is done he ought to harden his young body, so that life may not find him soft when he enters it. No one should be allowed to sin at the expense of posterity, that is, of the race.” (Adolf Hitler)


“Last July, feeling that the Press of this country was willfully lying and conducting a political campaign against Germany, I resolved to go to Berlin and make free and independent investigation. I was determined to do pretty much as I pleased when I got there, and no one interfered with my movements. I found Germany, comparatively speaking, a free country, much freer than some of its neighbours. My own views were not always acceptable to my many friends, among whom I can count Jews and Gentiles, Nazis and Communists, Democrats and Socialists. Soon I found that being a Nazi does not preclude one holding views that few Labour men in my own country would dare to express to their ‘comrades’ of the national Labour Party.” (G.E.O. Knight. In Defence of Germany).


The ritual slaughter of animals. “The Jews enjoy absolute religious freedom, and the resolution passed by the Zionist Congress in Prague in which the German Government was accused of pursuing a policy of religious persecution towards the Jews was entirely unfounded. The resolution was probably motivated by the fact that the ‘Law for the Protection of Animals’ prohibited the slaughter of animals according to Jewish rites.” (Cesare Santoro. Hitler Germany, Vivisection)

The use of truncheons or other methods of violent restraint generally used by policemen.


Child Labour


During the first years of National Socialist government, the improvement in the German peoples standard of living, social security and their holiday and leisure facilities, placed Germany well ahead of all other nations including the United States. Such prosperity and social benefits have never reached the same scale anywhere in the world unless perhaps in a few privileged conclaves of society.


“More people died as a result of the tiny abortive Easter Uprising against British rule in Ireland (1916) than died as a result of political violence in Germany during the entire National Socialist revolution.” – Adolf Hitler


The National Socialist form of democracy was based on the principle of ‘community of the people’, which had its origins at the time of Pericles. This conception of democracy as an expression of the popular will was confirmed in the National Socialist regime by conferring on the nation the right of organising plebiscites (referendum) in order to give utterance to the peoples desires. Thus, the National Socialist form of democracy was more pure and more representative than that of a parliamentary regime which takes no account of majority opinion (capital punishment, immigration, Europe, to name a few); political ability or experience, genuine motivation, interest, nationality; and is often based on social background and influenced by interests; commercial for instance, in which the national good comes secondary. “The result of the revolution in Germany has been to establish a democracy in the best sense of the word. We are steering towards an order of things guaranteeing a process of a natural and reasonable selection in the domain of political leadership, thanks to which that leadership will be entrusted to the most competent, irrespective of their descent, name or fortune. The memorable words of the great Corsican that every soldier carries a Field Marshal’s baton in his knapsack, will find its political complement in Germany.” – Adolf Hitler

“In England, under democracy, you do not put experts in charge of your affairs, but distribute favours among men of a small class without especial qualification for the posts they receive. This is the misuse of democracy in the interest of class, the betrayal of democracy, and it is the cause of our woes, past, present and to come.” (Douglas Reed, Disgrace Abounding).



Interest free loans of up to 1,000 Deutschmark were paid to newly-married couples provided that the wife having hitherto been a wage earner, relieves the labour market by her marriage. The loan is redeemable at the rate of 1% per month, and for each child born is reduced by 25%.

925,000 newly married couples took advantage of this scheme, and they produced 825,000 children.


“Capitalism and Bolshevism are the two sides of the same international Jewish coin.” – Adolf Hitler


An organisation known as ‘Mother and Child’ was formed. Its purpose was to provide for the welfare; health, safety, financial security, and recreation of expectant mothers, mothers and their children.

This provided for 26,000 local centres staffed by 227,000 (100,000 voluntary) communal sisters, matrons, governesses, and nurses. Also provided 160 centres, which by 1937 had provided 1,800,000 children with holidays. A further 308 centres were established for mothers of which there were by 1937, 71,000 who had taken advantage of a break. There were 4,319 day nurseries and kindergartens and 2,700,000 mothers had taken advantage of NSV assistance.


“In Germany today there are nearly two-thirds more kindergartens than before National Socialism assumed power. Thousands and thousands of children have been sent to special holiday and sunshine homes in the country and at the seaside. Their numbers would suffice to flank both sides of the Berlin-Nuremberg road.” – Herr Hilgenfeldt. Head of the Welfare Organisation

“We have now been successful in decreasing the percentage of infant mortality from 7.09% in 1932 to 6.6% in 1936. In this way, and notwithstanding the increase in the birth-rate we have presented the nation with 140,000 baby boys and girls – a figure that is the equivalent to the population of Lubeck. . . tears must be turned into smiles and no effort must be spared in order to create a healthy and strong nationhood.” – Herr Hilgenfeldt. Head of Welfare Organisation


“The fight against the poisoning of the soul must be waged alongside cultivation of the body. The life of the people must be freed from the asphyxiating perfume of modern eroticism. The aim and method must be governed by the thought of preserving our nation’s health in body and soul. The right of personal freedom comes second in importance to the duty of maintaining the race.”! – Adolf Hitler


A subsidised housing program was based on providing all German families with a maximum of two-storey accommodation each with its own garden “thereby developing attachment to the soil.” The building of maisonettes and flats was discouraged.


“The purpose of social work should not be to distribute favours, but to restore rights.” – Adolf Hitler


“I wish very much that your tourists would visit us not merely when sporting evens are on but also that they could visit the country, I mean the whole country. There will be no organised propaganda tours to conceal the truth from them. We shall not tell them that Germany is a paradise, for there is no such thing on earth. But your tourists can travel here unhampered and complete freedom and see for themselves that Germany lives in peace and order and at work. They will observe our revival, the efforts we are making and our good will for peace. That is all I hope.” – Adolf Hitler, Paris Soir, January 26th 1936

“Thousands of Americans, Englishmen and Frenchmen have visited Germany during the months after the national revolution and were able to testify as eye-witnesses that there is no country in the world where law and order are better maintained than in present-day Germany. That there is no country in the world where person and property are held in better respect than in our own, but that there is perhaps also no country in the word where a more rigorous fight is put up against those who believe that they are free to let loose their lower instincts to the detriment of their fellow-beings.” – Adolf Hitler


Winston Churchill had this to say. “While all those formidable transformations were occurring in Europe, Corporal Hitler was fighting his long, wearing battle for the German heart. The story of that struggle cannot be read without admiration for the courage, the perseverance, and the vital force which enabled him to challenge, defy, conciliate, or overcome, all the authorities or resistance’s which barred his path. He, and the ever increasing legions who worked with him, certainly showed at this time, in their patriotic ardour and love of country, that there was nothing that they would not dare, no sacrifice of life, limb or liberty that they would not make themselves or inflict upon their opponents.” (Winston Churchill. Francis Nielson. (‘Makers of War’ p.101)

“There must not be lacking in our leadership something of that spirit of the Austrian corporal who, when all had fallen into ruins around him, and when Germany seemed to have fallen into chaos, did not hesitate to march forth against the vast army of victorious nations and has already turned the tables decisively against them.”

“The German leader with the highest of praise for his accomplishments as no other foreign statesman ever received from an Englishman.” (Winston Churchill, 4th, October, 1938)





One response to “Grim Economic Prospects for 2012: How the Federal Reserve Overshadows the European Banking System




    “The Soviet system is barbarism worse than the Stone Age.” (Winston Churchill)


    “No faith need be, indeed may be kept with non-communists. Every act of goodwill, of tolerance, of conciliation, of mercy, of magnanimity on the part of governments or statesmen is to be utilised for their ruin. Then, when the time is ripe and the moment opportune, every form of lethal violence, from revolution to private assassination, must be used without stint or compunction. The citadel will be stormed under the banners of Liberty and Democracy; and once the apparatus of power is in the hands of the Brotherhood all opposition, all contrary opinion, must be extinguished by death. Democracy is but a tool to be used and afterwards broken.” (Winston Churchill ‘Great Contemporaries’ 1937, p.168)

    “Many illusions about Soviet Russia have been dispelled in these fierce weeks of fighting in the Arctic Circle. Everyone can see how communism rots the soul of a nation; how it makes abject and hungry in peace and proves it base and abominable in war. . . if the light of freedom which burns so brightly in the frozen north should finally be quenched, it might well herald a return to the Dark Ages when every visage of human progress during 2,000 years would be engulfed.” (Winston Churchill, 20th, January 1940)



    “Of Italian Fascism, Italy has shown that there is a way of fighting the subversive forces which can rally the masses of the people, properly led, to value and wish to defend the honour and stability of civilised society. Hereafter no great nation will be unprovided with an ultimate means of protection against the cancerous growth of Bolshevism.” (Winston Churchill, 11th, November 1938)

    “We wish to state most clearly and emphatically that there exists here today nothing that can be justly termed either tyranny or suppression of personal freedom as guaranteed by constitutional law in any civilised land. We believe that Mussolini enjoys the enthusiastic support and admiration of. . . and who are contented, orderly and prosperous to a degree hitherto unknown in Italy, and probably without parallel at the present time among other great European nations still suffering from the war.” (Committee of British Residents, Florence. ‘Financial Times’, 1926)

    NOTE: In 1933, the Financial Times brought out a special eight-page supplement under the caption: ‘The Renaissance of Italy: Fascism’s Gift of Order and Progress.’ This was published before Mussolini’s Italy proceeded against undue Jewish control of its affairs.


    Upon his return following a visit to Hitler, his daughter greeted Lloyd George, humorously with a “Heil Hitler!”

    “Yes, Heil Hitler. I too, say that because he is truly a great man. I have never met a happier people than the Germans and Hitler is one of the greatest men among the distinctly great men that I have ever encountered.”

    Hitler’s political aim and policy is directed towards attaining his goal without loss of blood. He succeeded in ascending to the highest power-position in Germany with very little spilling of blood or loss of human life in a land of 68 million inhabitants. Austria was annexed without one shot being fired. The unrest in Palestine cost more lives during the past five years than that in Germany and Austria since the inception and the establishment of the Hitler regime.” (Daily Mail, 20th, May, 1938)


    300.000 AMERICANS


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