Global Margin Call Part 2: Zionist Bankers and the End of Empire

The end of the Anglo-American Banking Empire.

Beware of bankers bearing bonds…

Banking - is there a less shady path to riches, power and infamy? Through the centuries the answer seems to be no. However, it is the assertion of this author and a small but growing cohort of analysts, conspiracy theorists, free thinkers, and perhaps myriad bankers themselves who are waking to the denouement of the Global Financial System (GFS). Indeed, the end of Western banking as established and iterated since the defeat of Napoleon and the global expanse of the Anglo-American Empire is close at hand. How and why the seemingly impregnable fortresses we call central banks and the financial corporations who run them are facing an extinction-level-event is both obvious and complicated. In short, a global margin call that will finish the system off is unfolding right before our eyes.

What is an end-of-cycle event? Nassim Taleb coined it the black swan, (scientific consensus asserted that all swans were white until 1697 when Dutch explorers saw a black one in Western Australia) the rare event, others call it the endgame. Such events are impossible to predict but they happen more often than most assume:

“history teaches us that things that never happened before do happen. It can teach us a lot outside of the narrowly defined time series; the broader the look, the better the lesson. In other words, history teaches us to avoid the brand of naive empiricism that consist of learning from casual historical facts.”

Nassim Taleb - Fooled by Randomness

In an effort to look beyond “casual historical facts” we must set aside the fairytales told by orthodox economics and popular history. We must reframe the GFS less as a global chess board governed by finite rules and more as a human system that is open, non-linear, ever complexifying, and highly sensitive to the whims of “animal spirits.” To begin, let’s revisit the origins of modern banking around the close of the Napoleonic Wars. So equipped, perhaps we can get a better sense of the impending implosion and capture a glimpse into the post-banking-world at the same time.

Zion and Albion

El Greco’s “Purification of the Temple”

Banking transgressions have a long history that precedes Medici scions and extends to biblical times as famously depicted by El Greco’s portrait: Purification of the Temple. That said, banking is frequently associated with an elite cartel as Alex Krainer details below:

“the history of western financial oligarchy, their Venetian roots, migration to Amsterdam where they formed the Dutch Empire, and subsequent move to London which, to this day remains the ideological and spiritual headquarters of the undead British Empire.”

Alex Krainer

A less muddled way to think about the current system is the conjoining of two empires (British and American) and one family (Rothschilds). The progenitor of modern European banking is Mayer Amschel Baum, the patriarch of the Rothschilds, named for the “Red Shield” hung over the family house in Frankfurt in 1755. As a young man, Amschel was fortunate to leave the ghetto for an apprenticeship in rare coinage, a popular trade among the aristocracy and a gateway to financial tradecraft. Amschel’s newly acquired skills combined with his wife’s dowry enabled him to launch a successful coinage business and eventually to becoming the trusted banker to Crown Prince Wilhelm of Hesse. The business expanded across the aristocratic world.

Rothschild’s was the ultimate family business. Amschel had five sons who became the heads of family firms well beyond Germany. Nathan, his third and possibly smartest son, was dispatched to Manchester in 1798 to establish a foothold in the booming textile industry in England and invest in the London Stock Exchange. By the early 1800s, Amschel had disbursed all five of his sons across Europe to establish investment franchises in London, Paris, Vienna, Frankfurt and Naples. It was an auspicious time for an international financial network since regional war had torn Europe apart.

The Rothschilds made their leap into super wealth status through war profiteering. Rothschild franchises directly or indirectly financed both England and France during the Napoleonic Wars so they would come out the winner regardless of the outcome. England’s victory over Napoleon in 1815 meant the new home base would be the city of London.

Rothschild Empire

It is important to note that the Rothschilds were not the sole architects of the new financial system nor did they establish national banks like the Bank of England (that was a Scotsman named William Paterson) but I think it is safe to credit them as the progenitors of financial capitalism. According to Carol Quigley, there were five characteristics of the emerging banking system:

1. International - the system incorporated banks across Europe and beyond

2. Governments - the system enmeshed itself in government finances

3. Bonds and Liquidity - the core of the system was government debt

4. Gold - the system ran based on “sound money” as its base layer

5. Secrecy - the system operated behind the scenes and out of public scrutiny

“The merchant bankers of London had already at hand in 1810-1850 the stock exchange, the BOE, and the London money market when the needs of advancing industrialism called all of these into the industrial world which they had hitherto ignored.”

Carol Quigley - Tragedy and Hope

Headquartering in “the square mile” is key to the story. With Napoleonic France out of the way, Great Britain (called “Albion” by the Romans) expanded across the world relatively unimpeded by another superpower who could challenge her, especially at sea. Albion built worldwide supply chains, trade networks, colonial administration, global corporations, and internationalized English.

Financial empire moved in parallel with colonial empire. In 1865, Scotsman Sir Thomas Sutherland set up Hong Kong and Shanghai Banking Corporation (HSBC) to provide accessible banking services to burgeoning Asian markets. You might say the concrete of global financial infrastructure we live under today was being laid. HSBC remains one of the top 10 largest banks in the world and a custodian to the LBMA, something we will revisit in part 3.

By the late 19th century Great Britain had become an instrument of Rothschild power. A key plot twist came with the ascension of Benjamin Disraeli as Prime Minister. According to Laurent Guyénot, Disraeli was close with Lionel de Rothschild (son of Nathan Rothschild) and a front man for Zionism, the real motivation for Disraeli’s push to acquire the Suez Canal. The Rothschilds funded the expansion into Suez to repurpose British interests in the Middle East to the eventual creation of the state of Israel. Disraeli’s influence also gave the Rothschilds a dominant position in the Bank of England, undoubtedly realizing the ambitions of Nathan in 1798. With England fully ensnared and the Zionist project in motion the Rothschilds turned to the America’s, the second pillar of their financial imperium.

Understanding the true relationship between Zion and Albion in Disraeli’s time requires a correct appraisal of the power of the Rothschild dynasty over British policy. Without the Rothschilds, Great Britain would never have gained control of the Suez Canal, which was the cornerstone of the British Empire in the Middle East.

Laurent Guyénot -

Anglo-American Banking Empire

Montagu Norman and Benjamin Strong

Subordinating the US to external financial power was considerably harder than Europe because 19th century American presidents strongly opposed it. The first two central banks were famously rejected by Presidents Jefferson and Jackson, which effectively blocked central banking for 100 years. Rumored interventions to provoke the War of 1812 and the Civil War to impose central banking also failed. Without a central bank, the Rothschilds struggled to extend their cartel across the Atlantic until the Fed was created in 1913.

“The idea of a national bank is dead, and will not be revived in my time.” — President Zachary Taylor

The history of the Fed is well documented but of prime importance here is the relationship between Montagu Norman, future governor of the BOE, and Benjamin Strong, the First President of the Federal Reserve Bank of New York (FRBNY). They first met over a dinner hosted by Norman in 1916 when Strong traveled to Europe to expand the Fed’s influence. Their relationship represented the conjoining of two continental banking centers into one system and the bankers final conquest over western industrial powers.

Who were these men? Strong rose up through the Morgan banking empire and was crucial in helping JP Morgan “stop” the banking Panic of 1907, a fitting crisis used to justify the Fed’s creation shortly thereafter. However, Norman was the more compelling, sinister, and powerful figure. He travelled the world incognito and used an assumed name, “Professor Clarence Skinner” to conceal his true identity and purpose. By 1920, Norman became BOE Governor, a position he held for 24 years, 20 years longer than his predecessors. The Wall Street Journal called him the “currency dictator of the world,” implying he was the banker’s banker. Together, Strong and Norman streamlined the Anglo-American financial system:

“In the 1920’s, they were determined to use the financial power of Britain and the United States to force all the countries of the world to go on the gold standard, and to operate it through central banks free from all political control, with all questions of international finance to be settled by agreements by such central banks without interference from governments.”

Carol Quigley - Tragedy and Hope

World War I, like the Napoleonic Wars, provided the opening. Under the auspices of reconstruction post-war, Strong worked with Norman to integrate American finance into the Anglo-international banking order. It is true that the US dollar did not become the official world reserve currency until Bretton Woods in 1944 but an analysis of international reserves shows that London and New York City were both safe havens by the early 1920’s. Essentially London and NYC became the defacto twin cities in the Rothschild dominated Anglo-American financial empire.

The end of World War II solidified the superstructure. Europe’s economic devastation, the Marshall Plan, and the Communist threat opened the frontier so Western bankers could fully ensconce the globe. Bretton Wood’s institutions like the IMF and the World Bank folded well into this scheme, acting as vehicles for financialization disguised as economic development.

While Strong and Norman like Rothschild before them set the foundation, the system was not fully fleshed out until the 1950’s. The final step was the eurodollar system, “an offshore dollar market by which we mean dollar deposits issued outside the American banking system.” (Bloomberg estimates this market is +$10T and its certainly much bigger) It was then that the Anglo-American system truly became a seamless, fully integrated global financial system, what some people call “ledger money.”

Global, Ubiquitous, Deadly

The beauty of the dollar system is its ubiquity because the first mover effect is so powerful. Like English, the world’s most widely spoken language and lingua franca of international business, the dollar system (USDs, eurodollars, Asian eurodollars) is the world’s settlement system or “medium” as Eurodollar University’s Jeff Snider says. Both are products of the British empire.

Network effects transformed dollars from a store of value to ledger money, a highly adaptable, digitized innovation based on three pillars as outlined by Jeff Snider: banks, global banks, and peer-to-peer. These pillars slowly layered on top of one another from the end of the Napoleonic Wars to the end of the Cold War, eventually transforming into the eurodollar, the “best, most adaptable ledger money” the world has ever seen. So what is the problem?

“The Ledger System is connected by independent ledgers integrated together through telecommunications able to settle wide margins in a large geographical footprint. The world’s largest non-cash payment system in the primitive economy of the latter half of the 19th century. It grew and grew and grew while everyone was focused on the supply of gold coins and national bank notes ledger money came to dominate.”

What Comes After the Dollar dies - Jeff Snider

The success of the global dollar system is its undoing. Here, it is vital to grasp the reality that banking is neither essential nor necessary to spur economic growth, and often cripples it via something called financialization. Financialization is a reorientation of all economic activity away from production and towards the trading and speculation of financial assets.

Financialization is a virus. Anything economic (houses, businesses, healthcare, insurance contracts) becomes a form of collateral, even babies become “baby bonds” as Larry Fink intimated in the Financial Times. Once collateralized, they are packaged and repackaged over and over and over again into an exotic, pyramided debt instrument. Overtime however, financialization degenerates all economic activity into a leveraged speculation of less and less valuable collateral based on less and less productive economy until the bubble pops.

Financialization means that anything economic becomes a form of collateral, even babies become “baby bonds.”

Many point to the dissolution of the gold standard in 1971 as the turning point but the process of Anglo-financialization was well underway by the ‘50s. The inflationary spikes triggered by Vietnam and LBJ’s Great Society spending simply accelerated the process. Reaganomics and Thatcherism did not reverse the damage either.

“Trickle-down-economics” was really just financialization by another name. It came at the expense of average Britons and Americans who suffered the long-term consequences: deindustrialization, indebtedness, joblessness, and impoverishment. Ultimately, the point of financialization is to seize all accessible pools of liquidity and suck them dry for financial fuel. The underlying economies of Anglo-America and the West in general were permanently disfigured as a result.

No Growth, Only Stimulus

The foundation of all productive economy or real wealth is the efficient allocation of resources, both human and material. Legacy economic theory assumes that banking plays an integral role in wealth creation (savings = investment = lending) but in reality banks leach rather than spur growth. It is not clear if banks are an economic necessity whatsoever. Richard Werner said as much in a recent interview with Tucker Carlson, “there is no such thing as a bank deposit, there is simply a loan…we give to the bank." We have seen what they do with it.

Once financialization reaches a certain point economic growth becomes impossible. Conventional thinking by libertarians, gold bugs, and even Fed skeptics is that inflation is the self-licking ice cream that sustains itself because central banks can always print money. Rather, what sustains financialization is not inflation, it is the rents that can be harnessed from the collateral of real economy.

Financialization is about confiscating productive concentrations of capital. Remember, central to the Rothschild scheme was first to control government bonds as a permanent source of liquidity (taxes or “rents”). For nearly two centuries central bankers like Alan Greenspan championed gold so it was never the check on banking power many assume. In other words, the gold standard was somewhat marginal to the broader sequence below:

Debt: Issuance Stage via bank loans

• Government money (bonds)

• Big companies (stocks)

• Real estate (mortgages)

• Small companies (private equity)

• Retirement savings (pension funds)

Collateralize: Assimilation Stage

• Package assets into derivatives

• Scale derivatives via exotic instruments

Leverage: Speculation Stage

• Asset bubbles via low interest rates

• Refinance, over and over again

• Pump and Dump

• Secure Bailouts (CBs or governments)

“Democratization”: Starvation Stage

• Scramble for liquidity amidst dying growth

  • 401Ks

  • Retail investors

  • Emerging markets

  • Unrealized gains

  • “baby bonds”

Financialization’s only way to survive is to consume until nothing is left like a crack addict. Again, let’s try to reframe: when Larry Fink pushes for baby bonds, “an investment account for every American at birth,” he is not positioning out of strength but out of desperation. The same holds for stable coins, another misbegotten effort to draw in economic activity from untapped markets to feed the banking system.

Without underlying economic growth to collateralize, without large liquidity pools to collect rents, the banking system will collapse in short-order. Larry Fink knows this and so does Scott Bessent. Bankers are little more than gatekeepers to a financial leper colony, a diseased commune where there is no real industry, no real innovation, no real resources, no assets, only liabilities.

Bankers are little more than gatekeepers to a financial leper colony, a diseased commune where there are no assets only liabilities.

Bankers are nervous because the non-western world has figured this out. The proxy war between the US and Russia in Ukraine and Sino-American fencing must be viewed in this context. The Chinese have built an impenetrable Great Wall of supply chains, gold mining, and industrial economy. Russia has built a military-industrial machine to repel Western incursion. Both are proof of concepts for dedollarization. The fate of financialization may well be determined in eastern Europe and East Asia so the stakes are high.

Western sanctions, asset confiscations, and military escalation has utterly failed this time. Russia has won decisively in Ukraine and China is the largest industrial power in the world. The global south is rerouting around China and away from the US via platforms like BRICS and SCO. The perennial Zionist quest to transform every human being on this planet into an ATM machine has finally been stopped in its tracks.

The last 200 years of Anglo-American globalization is disintegrating. Zionist banking cartels have been the unchallenged maestros of global finance and geopolitics for most of that period, until now. Internally the system is breaking after decades of destruction to Western economy and the struggling masses won’t accept debt slavery anymore. The bankers face unprecedented revolutionary unrest from within and the non-Western world is preparing a mass exit, a global fire sale.

That said, the game is not over yet. Geopolitical wars are heating up, Zionist bankers are far from powerless, and there are still levers to pull before the global margin call strikes. These measures and more will be discussed in the final part of this series.

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