ITS IDENTIFICATION AND ANALYSIS
JOHN WILLIAMS' SHADOW GOVERNMENT STATISTICS
www.shadowstats.com
FEDERAL DEFICIT REALITY: AN UPDATE
July 7, 2005
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U.S. Treasury Shows Actual 2004 Budget Deficit at $11.1 Trillion
Ultimate Crisis for Dollar Moves Beyond Possible Remedies
Hyperinflation and New Gold-Based Currency
System Are Likely Consequences
Foreword
From time to time, the U.S. financial markets manifest some concern about the nation's twin deficits -- the federal budget and the current account shortfalls. These episodes have been short-lived, however. Generally, the markets have been very sanguine about these problems -- much too sanguine, in our view! We believe there is a great deal about which to be concerned in both areas, and that longer run, the U.S. markets will indeed reflect it -- negatively, of course. This article updates our thoughts, etc. on the federal budget deficit.
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When the U.S. Treasury reported the official 2004 federal budget deficit at a record $413 billion last October, the hisses and boos in the financial media were unrelenting. Two months later, the Treasury reported the actual 2004 deficit -- using generally accepted accounting principles (GAAP) -- was really an incredulous $11.1 trillion [1], up from $3.7 trillion in 2003, yet nary a word was heard in the financial media, from Wall Street or from any political denizen of that former malarial swamp on the Potomac. An exception, of course, was Treasury Secretary John Snow, who signed the government's financial statements, but the data release was as low key as physically possible.
The silence partially reflects the financial-market terror that would accompany an effective national bankruptcy. Such is the risk when a government's fiscal ills spin so wildly out of control that they no longer are containable within the existing system.
Consider the traditional solution of raising taxes. Putting the $11.1 trillion deficit in perspective, if the government raised individual and corporate income taxes to 100%, seizing all salaries, wages and profits, the government's 2004 operations still would have been in deficit by trillions of dollars. The deficit has moved beyond practical fiscal control! Many in government and the markets are aware of the underlying deficit reality, but few dare to sound the alarm, for the ultimate resolutions to the situation all are political or financial nightmares.
The government's GAAP-based accounting generally is as used by Corporate America. It includes accrual accounting for money not yet physically disbursed or received but that otherwise is committed. The largest differences come from the bookkeeping related to Social Security and Medicare, where year-to-year changes in the net present value (discounted for the time value of money) of any unfunded liabilities are counted. In contrast, traditional deficit accounting is on a cash basis. It counts the cash received from payroll taxes (social Security, etc.) as income, but it does not reflect any offsetting obligations to the Social Security system.
For nearly four decades, officially sanctioned accounting gimmicks have masked federal deficit reality. Surpluses in trust accounts, such as Social Security, have been used to obscure the true shortfall in government spending. With less than one tenth of the actual deficit being reported each year, a cumulative negative net worth for the U.S. government has built up in stealth to a level that now tops $45 trillion, with total obligations of $47.3 trillion (more than four times annual GDP). The problem has moved beyond crisis to an uncontrollable disaster that threatens the existence of the U.S. dollar and global financial stability.
Indeed, the unfolding fiscal nightmare likely will entail a U.S. hyperinflation and a resulting collapse in the value of the world's primary reserve currency, the dollar. With surviving politicians looking to restore public faith in the global currency system, a new system probably will be based on gold, the only monetary asset that has held public confidence for millennia.
This article updates and expands upon our original background piece on the topic, "Federal Deficit Reality", published in September 2004, and a special economic alert, "Financial Report of the United States Government (FY 2004)", which appeared last December. Portions of those articles are revised and incorporated herein.
Current Detail and Options
Where the official cash-accounting deficit for fiscal-year 2004 (year-ended September 30) widened by 10.0% to $413 billion, the broad GAAP-based deficit (including Social Security, etc.) blew up to $11.1 trillion (96% of GDP) in 2004, triple the 2003 deficit level of $3.7 trillion.
Much of the increase in the broad GAAP-based deficit was due to a set-up charge from booking the 2004 "enhancements" to the Medicare system. Net of the $6.4 trillion one-time increase in net unfunded liabilities, the annual broad deficit was about $4.7 trillion, which still would have been a shortfall with 100% taxation.
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U.S. Government - Alternate Fiscal Deficit and Debt (Source: US
Treasury; $s Are Either Billions or Trillions, as Indicated)
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Formal GAAP GAAP GAAP Tot. Fed-
Cash- Ex-SS With SS Federal Gross eral Ob-
Fiscal Based Etc. Etc. Negative Federal ligations
Year Deficit Deficit Deficit Net Worth Debt (GAAP)
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(Bil) (Bil) (Tril) (Tril) (Tril) (Tril)
------ ------ ------ ------ ------ ------
2004 $412.8 $615.6 $11.1* 45.9 $7.4 $47.3
2003 374.8 667.6 3.7 34.8 6.8 36.2
2002 157.8 364.5 1.5 32.1 6.2 32.7
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*$4.7 trillion, excluding one-time setup costs of the Medicare
Prescription Drug, Improvement, and Modernization Act of 2003
(enacted December 8, 2003).
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Nonetheless, the total numbers reflect something close to true liability. The new Medicare charges show how quickly politicians can make an already impossible situation significantly worse. By adding features to Medicare without setting up full funding for same, the Administration and Congress helped increase the total net present value of unfunded federal government obligations by 31%, from $36.2 trillion to $47.3 trillion in just one year.
In like manner, any "fix" to Social Security, such as raising the retirement age, would result in a one-time change to the unfunded liabilities, but the ongoing annual shortfalls would be affected only minimally. An annual minimum broad GAAP-based deficit of $4.5 to $5.0 trillion appears to be in place.
Wall Street hypesters recently have been touting how the official 2005 federal deficit will narrow from 2004, and the Administration is promising ongoing deficit reductions from the official 2004 level. First, if the economy falls into recession, which it appears to be doing, all such projections are worthless. Second, even if the promised cuts came to pass, after full reductions in an about-$4.5-trillion broad GAAP-based deficit, the mere billions saved would still leave the annual deficit rounded to about $4.5 trillion.
The impossibility of the current circumstance working out happily is why lame-duck Federal Reserve Chairman Alan Greenspan has been urging politicians in Washington to come clean on not being able to deliver promised Social Security and Medicare benefits already under obligation. He suggests,correctly, that there is no chance of economic or productivity growth resolving the matter. The funding shortfall projections already encompass optimistic economic assumptions.
The current circumstance also is why the Bush Administration has been pushing for Social Security reform, but the plans discussed do not come close to touching the magnitude of the problem. Most Congressional Democrats will not even admit there is a problem. Indeed, neither side of the aisle is willing even to mention the scope of the actual shortfall or talk about the Medicare problem, which is even worse than Social Security.
If the Administration and Congress were willing to address the unfolding fiscal Armageddon, only two very unpleasant general solutions are available:
* The first solution is draconian spending cuts, particularly in Social Security and Medicare, accompanied by massive tax increases. The needed spending cuts and tax increases are so large as to be political impossibilities.
* In the absence of political action, the second solution is tacit bankruptcy, with the U.S. government facing some form of insolvency within the next decade or so. Shy of Uncle Sam defaulting on debt, the most likely eventual outcome is the Fed massively monetizing the U.S. debt, triggering a hyperinflation. U.S. obligations then would be paid off in a significantly debased and devalued dollar at literally pennies on the hundred dollars.
These alternatives are politically unthinkable and unspeakable for the Administration and Congress, hence the silence. Yet, these same political bodies are responsible for the current circumstance, along with the acquiescence of the financial community and an uninformed or disinterested voting public.
Decades of Deception -- Historical Perspective
Misleading accounting used by the U.S. government, both in financial and economic reporting, far exceeds the scope of corporate accounting wrongdoing that keeps making financial headlines. The bad boys of Corporate America, however, still have been subject to significant regulatory oversight and at least the appearance of the application of GAAP accounting to their books. In contrast, the government's operations and economic reporting have been subject to oversight solely by Congress, America's only "distinctly native criminal class." [2]
Nearly four decades ago, President Lyndon Johnson's political sensitivities led him and the Congress to slough off some of the costs of an escalating Vietnam War through the use of accounting gimmicks. To mask the rapid growth in the federal government's budget deficit, revenues from the surplus being generated by Social Security taxes were added into the general cash fund, without making any accounting allowance for the accompanying and increasing Social Security liabilities. This accounting-gimmicked reporting was dubbed "unified" budget accounting.
The government's accounting then, as it is now, was on a cash basis, reflecting cash revenues versus cash expenditures. There were no accruals made for monies owed by or due to the government or to the government's trust funds at some time in the future.
The bogus accounting understated the actual deficit for decades and even allowed for claims of budget surpluses in the years 1998 to 2001. While there were extensive self-congratulatory comments between the President, Congress and the Fed Chairman, at the time, all involved knew there never were any actual budget surpluses. There has not been an actual balanced budget, let alone a surplus, since before Johnson and his cronies cooked the bookkeeping.
The doctored fiscal reporting complemented the short-term political interests of both major political parties. Additionally, the ignorance and/or complicity of Pollyannaish analysts on Wall Street and in the financial media -- eager to discourage negative market activity -- helped to keep the fiscal crisis from arousing significant concern among a dumbed-down U.S. populace.
There were those, however, who believed the government's bookkeeping should be as accurate as possible. In the 1970s, the then "Big Ten" accounting firms proposed setting up for the federal government an accrual accounting and reporting system similar to that used in the business community. Purchases of capital equipment, weapons and buildings would be booked as assets and depreciated, taxes receivable and accounts payable would better reflect near-term cash needs. Accrued liabilities, such as Social Security payments due in the future, would reflect longer-term cash-flow needs.
As the project progressed, GAAP accounting was applied to the government's operations and prototype annual statements were published beginning in 1974. The appropriate accounting for Social Security liabilities, however, was discarded during the Reagan administration as being politically untenable.
Under the eventual mandate of Congress, the accounting project culminated in the U.S. Treasury publishing its first formal Financial Report of the United States Government for fiscal year 2000, consistent with GAAP, except for Social Security and similar accounts such as Medicare, Medicaid and the Railroad Retirement Fund.
The gimmicked accounting standards, as established during the Johnson era, still guide today's official, unified budget reporting. To the credit of the current Bush administration, however, the later GAAP reports, published in April 2003, April 2004 and December 2004 for fiscal years 2002, 2003 and 2004, indicated for the first time since the 1980s what the Social Security and related numbers would look like if they were included in the accounting, just as corporations need to account for pension and retiree health benefit liabilities.
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An Important Aside, Re: U.S. Government Economic Data
One of SGS' more important missions is to analyze, then report on the poor and deteriorating quality of "official" U.S. economic data. This growing lack of quality and the attendant diminution of accuracy contributes to bad business and investment decisions -- even bad political ones.
In the June edition of the newsletter, we took our mission a step further with the following announcement:
"Due to popular demand, SGS plans to begin publishing an alternate, monthly consumer price index by fourth-quarter 2005. The index numbers will be set -- not subject to revision -- and usable in calculations in the same manner as the official CPI. A history going back to 1990 will be reconstructed, with a bridge to pre-1990 CPI reporting. Annual inflation in the new series will tend to run about three-percent higher than the government's official inflation reporting of recent years.
"A full methodology will be published, in advance, and results will be replicable. The SGS index calculations will be fully transparent and based on publicly available data, not on massaged surveying by the Bureau of Labor Statistics, or over-modeled and over-theorized price levels. Further details will follow in upcoming newsletters. Comments and suggestions are welcomed."
Anyone wishing to learn more about this project and follow its progress is cordially invited to do so by letting us know at "CONTACT US". To help in properly responding to requests, we request that you provide your name as well as e-mail address. However, this is by no means obligatory.
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Dollar, Debt and Hyperinflation
The financial-market counterpart to the federal deficit is federal debt, where gross federal debt was $7.8 trillion as of June 30, 2005. That level was $7.4 trillion at the end of fiscal 2004, of which $4.3 trillion was borrowed from the public and $3.1 trillion was borrowed from the government (i.e. Social Security). Therein lies the problem. There is and will be too much debt from the U.S. government for the financial markets to absorb and remain stable.
The burgeoning deficit means the U.S. government will be increasing its debt level significantly for years to come. Near term, the amount borrowed will increase more rapidly than the markets are expecting, with the economy slowing down and entering recession. The ultimate question is who will lend the money to the U.S. Treasury? The answer is not U.S. investors.
The Federal Reserve's flow of funds accounts show that foreign investors, both official and private, owned 42.5% of U.S. Treasuries at the end of 2004, up from 18.2% at the end of 1994. In 2004, foreign investors bought 98.5% of new U.S. Treasury issuance. (See "A Look at Foreign Investment Behavior in the Latest Flow-of-Funds Data," courtesy of Gillespie Research Associates.)
Part of the reason for this relates to another deficit crisis the United States faces on the trade front, where an exploding trade deficit is throwing excess dollars into global circulation. By holding dollars and investing in Treasuries, instead of converting dollars to a local currency, foreign investors have been helping to fund much of the U.S. deficit.
The combination of the rapidly deteriorating trade and budget deficits guaranty this will change. At some point, willingness among foreign investors to hold dollars will evaporate along with the reality that currency losses are more than offsetting any investment gains. When sentiment shifts away from the greenback, not only are foreign investors going to stop buying U.S. Treasuries, but also they likely will dump their holdings of existing Treasuries along with the U.S. dollar. Such actions would lead to a sharp dollar decline, a sharp spike in interest rates and a sharp sell-off in equities. The question, again, is who is going to buy the Treasuries?
With new debt continually hitting the market, eventually the Fed will have to step in to buy the Treasuries -- as lender of last resort -- effectively monetizing the debt. The more the Fed monetizes, the greater will be the growth in the money supply, the greater will be the weakness in the dollar, the greater will be the rate of inflation.
Where the numbers already are there for this to happen, fiscal pressures will get even worse. Already, the Pension Benefit Guaranty Corporation looks like it needs a federal bailout. As the economy deteriorates, the Congress or the Fed will step in as needed to prevent the collapse of any major financial institution that would threaten the system. Such action, though, will prove fiscally expensive.
The Fed let the banks fail in the 1930s, which helped intensify a decline in the money supply. That in turn was given major credit for deepening the Great Depression. The Fed will try to avoid the mistakes of the 1930s, but, in the process, it likely will end up triggering a hyperinflationary depression.
Last year, we discussed in some detail that the U.S. government's sovereign credit rating of AAA more appropriately should be around B-, a below-investment-grade category, based on the 2003 GAAP statements ("Federal Deficit Reality".) Based on the 2004 GAAP statements, that rating now should be at C-, just above the default level. Never has an investment-grade overeign rating, let alone a AAA country, been supported by such negative extremes in underlying fiscal condition. Based on the latest numbers, the broad GAAP deficit for 2004 represents 96% of GDP, up from 33% in 2003, with total obligations now at 409% of GDP, up from 334% in 2003.
For political reasons, none of the rating agencies are likely to take a credit action against U.S. Treasuries under current circumstances, but that could change in the event of a major dumping of U.S. securities by those wishing to exit U.S. dollar exposure.
As noted by Fitch Ratings [3] in its Sovereign Ratings Rating Methodology: "Sovereign borrowers usually enjoy the very highest credit standing for obligations in their own currency. If they retain the right to print their own money, the question of default is largely an academic one. The risk instead is that a country may service its debt through excessive money creation, effectively eroding the value of its obligations through inflation."
Such has been the traditional cure for countries that borrowed so far beyond their means that they ended up with a choice between bankruptcy and hyperinflation. Hyperinflation seems to be the easier political route, although, for the first time, it will involve the world's primary reserve currency.
In a hyperinflation, the currency very rapidly becomes worthless. In the classic case of the Weimar Republic of the 1920s, a 100,000-Mark note became more valuable as toilet paper than as currency; wheel barrows full of currency were needed to buy a loaf of bread; an expensive bottle of wine one night was worth even more the next morning, empty, as scrap glass. That is the eventual environment the United States faces because of its out-of-control fiscal madness.
For decades, "The deficit doesn't matter" and "The dollar doesn't matter" have been guiding principles in Washington. The deficit and the dollar do matter, greatly, as Washington, the U.S. public and the global markets will learn shortly.
A New Gold Standard?
The dollar, as we know it, soon will be history. Dollar inflation has been through a number of cycles since the founding of the Republic, but its current perpetual uptrend -- net of some bouncing during the Great Depression -- only began once the Federal Reserve was created in 1914. Now, with fiscal policy careening beyond any chance of containment, the Federal Reserve will get to oversee the U.S. currency's demise.
It is not that the Fed wants to monetize the federal debt and trigger a hyperinflation -- the U.S. Central Bank certainly will do its utmost to avoid that outcome -- but it will have no politically acceptable alternative. The system otherwise would tend to right itself anyway through the economic shakeout of a hyperinflationary depression. While the Fed might hope to mitigate and to control the disaster, given the Fed's nature, it is more likely to exacerbate conditions rather than to improve them.
When the dollar loses most of its value, through hyperinflation and/or currency dumping, the global currency system and economy will be in shambles, and a new currency system will have to be established. Those setting up the new system will need to establish its credibility, and there is only one monetary asset that can accomplish that: Gold.
Gold is the only commodity that has held up as a liquid store of wealth over the millennia. The amount of gold used to buy a loaf of bread in Ancient Rome still buys a loaf of bread today. In like manner, the amount of gold that bought a regular haircut for a man in 1914, still buys a similar haircut today. Where the public does not trust today's politicians and central bankers, it does trust gold.
Whatever structure evolves for the new currency system, it most likely will have gold at its base. That is one reason that central banks rarely have followed through on threatened gold sales in recent years. The threats usually were nothing but jawboning aimed at depressing current market prices. Those countries holding the most gold will have the greatest advantage in any new currency system, and the central bankers know that, including Mr. Greenspan.
Timing of Related Currency and Financial Market Troubles
Central banks, OPEC, corporations and investors, both foreign and domestic -- as holders of U.S. dollars -- increasingly will sense or realize the greenback is headed for the dumpster. It only is a matter of when, not if.
The dumping of the U.S. dollar and/or U.S. debt by investors likely will hit quickly, with little advance notice. All the official actions that in turn could trigger hyperinflation would follow rapidly, with a full-fledged dollar collapse and developing hyperinflation possibly unfolding in a matter of weeks.
When this will happen is the tough question. It could be years; it could be next week. Without knowing the precise proximal trigger of the shift in sentiment against the U.S. currency, the timing is impossible to call. Nonetheless, some early warning signs may be evident in unusual anti-dollar activity in the currency markets, or in unusually sharp and unexplained spikes in the price of gold.
It would be extraordinarily surprising if the ultimate dollar collapse can be held off a decade, let alone three-to-five years. The pending global financial crisis conceivably could break in the immediate future, triggered possibly by one or more of the following developments: action by China to peg its currency to a basket of currencies instead of the dollar, OPEC pricing oil using a basket of currencies instead of the dollar, a sovereign credit rating downgrade on U.S. Treasuries, a major terrorist act, a very bad monthly trade report, a misstatement by an Administration official or some other event that may appear obvious in retrospect.
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If you would like information on Shadow Government Statistics, be be sure to CONTACT US.
Rumor Mill News Reading Room Forum
SHADOW GOVERNMENT: ITS IDENTIFICATION AND ANALYSIS
Posted By: RMNewsUpdates
Date: Thursday, 18 October 2001, 5:51 p.m.
Date: Thu Oct 18, 2001 2:45am
Subject: THE SHADOW GOVERNMENT: ITS IDENTIFICATION AND ANALYSIS
http://hardtruth.topcities.com/shadow_government.htm
THE SHADOW GOVERNMENT: ITS IDENTIFICATION AND ANALYSIS
by
Richard J. Boylan, Ph.D.
This is a summary report on those elements of that clandestine organizational network, (which we shall label the Shadow Government), which serves as a kind of "parallel government" to the official elected and appointed government of this country. It includes those elements known to the author with sufficient certainty that they can be positively identified, and their known or reliably reported functions described. It is distinctly possible that there are other elements, (particularly in the realms of the "Black Budget" and "Special Operations",) which have eluded our study, and are not named here.
Just as with the official government, the Shadow Government has functional branches. However, unlike the official government, the purpose of the none-executive branches of the Shadow Government is simply to distribute various functions, but not to achieve a system of checks and balances, as was supposed to happen constitutionally between the executive, legislative and judicial branches of the U.S. Government. That is because the Shadow Government is a creature of a powerful elite, who need not fear being dominated by an instrument of their own creation.
In the Shadow Government five branches may be identified. These branches are: the Executive Branch, the Intelligence Branch, the War Department, the Weapons Industry Branch, and the Financial Department.
The reporting lines of the Intelligence Branch and the War Department to the Executive Branch are straightforward and obvious. Intelligence exists to provide the Executive Branch with sufficient necessary information to make adequately informed policy decisions. The War Department exists to provide coercive force to carry out Executive policy decisions which could meet with public resistance. The Special Operations units within the Intelligence Branch and War Department exist to carry out policy directives requiring covert action and official deniability.
The Weapons Industry Branch reports to the Executive Branch most often indirectly, through the War Department and/or the Intelligence Branch (for Black Budget weapons systems).
The Financial Department theoretically reports to the Executive Branch for fiscal policy implementation, but de facto also reports directly to the international power brokers who have created the Shadow Government. The Financial Department serves at times directly as their instrument of fiscal policy implementation.
An analysis of the overall purposes of these five branches suggests that the overall purpose of the Shadow Government is to exercise covert control by:
1) collecting comprehensive institutional and personal information,
2) by establishing national and international policy independently of the established Government,
3) by developing high-tech arms and equipment, and, with these, establishing small, specialized, highly-mobile, elite military units to effect these covert policies, when need arises, without having to rely on the official (and "unreliable") Armed Services, (whose subservience to the Shadow Government is reasonably suspect),
4) by developing an armed capability to repel any threat to the status quo, (including the uncertain ontological, social, and economic impacts of any revelation of the reality of UFO and extraterrestrial presence) through the development of a Star Wars/BMDO ground and space-based surveillance and SDI weapons network,
5) by denying information compromising to the Shadow Government from all those outside "need-to-know" policymaking levels, and
6) by exercising control on the money supply, availability of credit, and the worth of money, through policy decisions made outside of the official Government.
All of these mechanisms of control serve to preserve or advance the agenda of an international group of pivotal power and influence brokers. That agenda is, according to Senator Barry Goldwater, that "national boundaries should be obliterated and one world rule established." [With No Apologies, Berkley Books, New York [[date unknown]].]
These power brokers' most visible unifying instrumentality is the Council on Foreign Relations (CFR), (which promotes the transition of Earth from a cluster of Nation-States to one global government), [Chairman: Peter G. Peterson; headquarters: 58 E. 68th Street, New York, NY 10021]. [Cf. In Control, Kerrville, TX: Fund to Restore an Educated Electorate, 1993.] However, one must not underestimate the influence of the Trilateral Commission (TC), (which coordinates economic initiatives of the Group of Seven with other "developed countries" vis-a-vis the "underdeveloped world",) [Chairman: Paul Volcker; headquarters: 345 E. 46th Street, New York, NY 10017]. Neither should one misjudge the power of the secretive Bilderberg Group (BG), (which concentrates on the military and strategic considerations of powerful West European and North American power brokers), [chair rotates, former Chair: Prince Bernhard of Holland; headquarters unknown: annual meetings rotate, but originally were held at the Hotel de Bilderberg, Oosterbeck, Holland].
David Rockefeller is the Chairman Emeritus of both the CFR and the TC, and certainly influences, through proxy representatives (such as Lloyd Bentsen), the Bilderberg Group. [Cf. Holly Sklar, ed., Trilateralism: The Trilateral Commission and Elite Planning for World Management; Boston: South End Press, 1981.]
What follows is a succinct identification and description of the constituent agencies in each of the five branches of the Shadow Government.
EXECUTIVE BRANCH
(This branch contains the effective policymaking and controlling structures behind the veil of apparent, democratic governmental structures):
a) Council on Foreign Relations (CFR) (includes George Bush, Bill Clinton, all modern CIA Directors, most modern Joint Chiefs of Staff, most modern Cabinet and top Executive Branch appointed officeholders, etc.);
b) Tri-Lateral Commission (David Rockefeller, Henry Kissinger, John D. Rockefeller, Alan Greenspan, Zbignew Brzezinski, Anthony Lake, John Glenn, David Packard, David Gergen, Diane Feinstein, Jimmy Carter, Adm. William Crowe, etc.; c) The Bilderberg Group (Prince Hans-Adam of Liechtenstein, Prince Bernhard of Netherlands, Bill Clinton, Lloyd Bentsen, etc.);
d) National Security Council (NCS), (the military and intelligence policymaking and control group for national and international security, which reports directly to the President), its secret 5412 Committee (which directs black [covert] operations), and its PI-40 Subcommittee (aka MJ-12: which exercises policy direction and control of the UFO Cover-Up);
e) Joint Chiefs of Staff (JCS)'s Special Operations compartment, (the operations directorate which implements the orders of the NSC's 5412 Committee, utilizing the U.S. Special Forces Command);
f) National Program Office (NPO), (which operates the Continuity of Government Project (COG), an ongoing secret project to maintain command, control, communication and intelligence executive centers during an extreme National Emergency by operating clandestine, secure, underground cities staffed by surrogates for above-ground national leaders]); and,
h) Federal Emergency Management Agency (FEMA)'s black projects compartment, (which operates federal preventive-detention camps [often located on military bases or federal Bureau of Land Management lands], secure underground shelters for the elite during cataclysms, etc.).
INTELLIGENCE BRANCH
(Serves functions of domestic and international surveillance and of secret police/enforcers):
a) National Security Agency (NSA), (monitors and screens all telephone, telegraph, computer modem, radio, television, cellular, microwave, and satellite communications, and electromagnetic fields "of interest" around the world, and orchestrates information-control and cover-up activities related to UFO secrecy and surveillance of extraterrestrial operations), Fort Meade, MD;
b) National Reconnaissance Office (NRO), (controls and collects information from global spy satellites, monitors UFO traffic entering and leaving Earth's atmosphere, coordinates firing of energy-beam weapons from orbiting Star Wars satellites at selected human ground and airborne targets and selectively at extraterrestrial craft), Pentagon basement and Dulles-Airport area, VA;
c) National Reconnaissance Organization (NRO) (aka MJ-TF), (the military/intelligence operations arm of the PI-40 Subcommittee, conducts surveillance, interdiction, capture and confiscation of UFOs and their extraterrestrial occupants for intelligence and "International Security" purposes; surveilles and "interacts" with close-encounter experiencers, including occasional physically and sexually assaultive mind-control kidnappings disguised as "Alien abductions" for psychological warfare and disinformational purposes), headquarters unknown, probably compartmented and dispersed among various elite Delta Force Special Operations units, such as the USAF Blue Light at Hurlburt Field, Mary Esther, FL and Beale Air Force Base, Marysville, CA;
d) Central Intelligence Agency (CIA), (commands, often controls, and sometimes coordinates, the gathering of secret overseas information gathered by spies (HUMINT), electronic surveillance (SIGINT), and other means; carries out covert unconstitutional paramilitary counterinsurgency operations and preemptive political pacification projects in violation of international law, as well as counter-intelligence sting operations against foreign agents; engages in domestic surveillance, and manipulation of the U.S. political process, "in the National interest" in direct violation of its congressional charter; operates proprietary "false-front" companies for profit; conducts a major share of international transshipment of illegal drugs, using National Security cover and immunity; and cooperates with NSA's UFO cover-up operations), Langley, VA, and worldwide branches;
e) Federal Bureau of Investigation, Counter-Intelligence Division, (the branch which investigates, surveilles and neutralizes foreign Intelligence agents operating within the U.S., and cooperates with the National Reconnaissance Organization in the surveillance of those involved in close encounters with UFOs and extraterrestrials);
f) Department of Energy Intelligence (DOE-INTEL), (which conducts internal security checks and external security threat countermeasures, often through its contract civilian instrumentality, the Wackenhut Corporation);
g) NSA's Central Security Service, and CIA's Special Security Office, (which respectively spy on the spies, and conduct special operations which cannot be entrusted to line intelligence officers), Ft. Meade, MD and Langley, VA;
h) U.S. Army Intelligence and Security Command (INSCOM) (whose assignments include psychological and psychotronic warfare (PSYOPS), parapsychological intelligence (PSYINT), and electromagnetic intelligence (ELMINT), Ft. Meade, MD;
i) U.S. Navy Office of Naval Intelligence (ONI), which gathers intelligence affecting naval operations, and has a compartmented unit involved in UFO and USO [Unidentified Submerged Objects] information gathering;
j) U.S. Air Force Office of Special Investigations (AFOSI), (which gathers intelligence affecting aerospace operations, and has a compartmented unit involved in investigating UFO sightings, extraterrestrial contact reports, as well as IAC [Identified Alien Craft] surveillance, and coordination with NRO interdiction operations), Bolling Air Force Base, MD;
k) Defense Intelligence Agency (DIA), (which coordinates the intelligence data gathered from the various Armed Services intelligence branches (Army, Navy, Marines, Air Force, Coast Guard and Special Forces), and provides counter-threat measures,
(which include providing security at ultra-classified installations by the deployment of U.S. "Thought Police", who conduct surveillance, by remote-viewing and other parapsychological measures, against penetrations and scanning by foreign or civilian remote-viewers [clairvoyants/out-of-body seers]), Pentagon, VA, Fort Meade, MD, and the entire astral plane;
l) NASA Intelligence, (which gathers intelligence data relating to space flights, sabotage threats, astronaut and reconnaissance satellite encounters with UFOs and ETs, and coordinates the transfer of alien technology to U.S. and allies' aerospace operations);
m) Air Force Special Security Service (which is an NSA/USAF joint intelligence operations unit dealing with possible threats to aerospace operations from foreign powers, terrestrial or otherwise);
n) Defense Industry Security Command (DISCO), (which conducts intelligence operations within and on behalf of the civilian defense contractor corporations engaged in classified research, development, and production);
o) Defense Investigative Service (DIS), (which conducts investigations into people and situations deemed a possible threat to any operation of the Department of Defense);
p) Naval Investigative Service (NIS), (which conducts investigations against threats to Naval operations);
q) Air Force Electronic Security Command, (which conducts surveillance and interdiction of threats to the security of Air Force electronic transmissions and telemetry, and to the integrity of electronic counter-measure (ECM) warfare equipment; r) Drug Enforcement Agency (DEA) Intelligence, (which conducts surveillance and interdiction of drug smuggling operations, unless exempted under "National Security" waivers);
s) Federal Police Agency Intelligence, (which coordinates intelligence relating to threats against federal property and personnel);
t) Defense Electronic Security Command, (which coordinates intelligence surveillance and countermeasures against threats to the integrity of military electronic equipment and electronic battlefield operations), Fort Worth, TX.
u) Project Deep Water (the ongoing effects of the compromised personnel, sources and methods resulting from the secret importation of Hitler's own Nazi Intelligence chief, Gen. Reinhard Gehlen, to redesign the U.S.'s Intelligence apparatus);
v) Project Paperclip (the ongoing results of the secret importation of Nazi weapons and aerospace/UFO scientists into U.S. secret military research and development bases);
w) (Undoubtedly, more clandestine units exist, not identified at this time.)
WAR DEPARTMENT
(High-Technology Weapons Development and Covert Special Forces/Special Operations Units Deployment):
a) CIA's Directorate for Science and Technology, (which gathers information with promise for scientific and technological developments which present a superiority advantage for, or a threat against, the National Security,
[also contains the "Weird Desk", which centrally processes intelligence about UFOs and ETs and their interaction with Earth], current Deputy Director of Central Intelligence for Science and Technology is Ron Pandolfi);
b) Strategic Defense Initiative Office (SDIO)/ Ballistic Missile [sic] Defense Organization (BMDO), (which coordinates research, development and deployment of Star Wars electromagnetic-pulse, killer-laser, particle-beam, plasmoid, and other advanced-technology aerospace weapons;
c) Department of Energy (DOE) (which, besides its cover-story of researching cleaner-burning coal and gasoline and more solar power, is principally involved in research and development of: more specialized nuclear weapons; compact, self-sustaining, fusion-powered, particle and wave weapons, including electromagnetic pulse, gravitational/antigravitational, laser, particle-beam and plasmoid applied weapons research; high-energy invisibility "cloaking" technology, etc.);
d) Lawrence Livermore National Laboratories (LLNL)/Sandia National Laboratories-West (SNL-W), (which are involved in nuclear warhead "refinements", development of new trans-uranic elements for weapons and energy applications, development of anti-matter weapons (the Teller Bomb: 10,000 times the force of a hydrogen bomb), laser/maser technology applications, and, reportedly, successful teleportation experiments, among other projects, at this Russian-nicknamed "City of Death"), Livermore, CA;
e) Idaho National Engineering Laboratories (INEL), (which houses numerous underground facilities in an immense desert installations complex larger than Rhode Island, has security provided by its own secret Navy Base, is involved in nuclear, high-energy electromagnetic, and other research, and includes Argonne National Laboratory, West), Arco, ID;
f) Sandia National Laboratories (SNL)/Phillips Air Force Laboratory, (which are sequestered on Kirtland Air Force Base/Sandia Military Reservation, and conduct the translation of theoretical and experimental nuclear and Star Wars weapons research done at Los Alamos and Lawrence Livermore National Laboratories into practical, working weapons), Albuquerque, NM;
g) Tonopah Test Range (SNL's DOE weapons-testing facility for operationally testing Star Wars weapons in realistic target situations, and is adjacent to classified stealth and cloaked aerospace craft and U.S.-UFO bases at the Groom Lake [USAF/DOE/CIA] Base [Area 51] and Papoose Lake Base [S-4]), Nevada Test Site/Nellis AFB Range, Tonopah, NV;
h) Haystack (Buttes) USAF Laboratory, Edwards AFB, CA, (a 30-levels deep, extreme-security facility reportedly engaged in alien technology retro-engineering;
i) Los Alamos National Laboratories (LANL), (which is the premiere research lab for nuclear, subatomic particle, high magnetic field, exo-metallurgical, exo-biological and other exotic technologies research), Los Alamos County, NM;
j) Area 51 (Groom Lake [USAF/DOE/CIA] Base), and S[Site]-4 (Papoose Lake Base), ultra-secure "nonexistent" deployment bases where extremely classified aerospace vehicles are tested and operationally flown, including the Aurora [Mach-8] spyplane, the Black Manta [TR-3A] stealthy fighter follow-on to the F-117A, the Pumpkinseed hyperspeed unmanned aerospace reconnaissance vehicle, and several variants of antigravitational craft (U.S.-UFOs), including the Christmas Ornament (glowing orange orb) and the Firefly (strobing, flitting, bluish-white lit airframe);
k) U.S. Special Forces Command, Hurlburt Field, Mary Esther, Fl, along with its Western U.S. Headquarters, Special Forces Command, Beale AFB, Marysville, CA, coordinating: 1) U.S. Army Delta Forces (Green Berets); 2) U.S. Navy SEALS (Black Berets), Coronado, CA; and 3) USAF Blue Light (Red Berets) Strike Force;
l) Defense Advanced Research Projects Agency (DARPA), (which coordinates the application of latest scientific findings to the development of new generations of weapons); (now called ARPA);
m) the Jason Group (elite weapons-application scientists, developing cutting-edge-science weapons for DARPA/ARPA, and operating under the cover of the Mitre Corporation);
o) Aquarius Group (UFO technology-application scientists, reportedly working under the guidance of the Dolphin Society, an elite group of scientists privy to extremely classified science and technology findings);
p) Defense Science Board, (which serves as the Defense Department's intermediary between weapons needs and the physical sciences);
q) Defense Nuclear Agency (DNA) (currently concentrating on fusion-powered, high-energy particle-beam, X-ray laser, and EM forcefield weapons development and deployment);
r) U.S. Space Command, (Space War Headquarters for operating "the next war, which will be fought and won in space"), Falcon AFB, CO;
s) North American Aerospace Defense Command (NORAD), (operating the nuclear-survivable space surveillance and war command center deep inside Cheyenne Mountain), Colorado Springs, CO;
t) Air Force Office of Space Systems, (which coordinates the development of future technology for operating and fighting in space);
u) National Aeronautics and Space Administration (NASA) (which operates covert space-defense, ET research, and space-weapons compartments, in addition to manned Shuttle and unmanned scientific satellite launches);
v) NASA's Ames Research Center, (which conducts the SETI (Search for
Extraterrestrial Intelligence) Project, Exobiology (alien life forms) Division, and "Human
Factors" (PSY-Warfare) Division), Sunnyvale, CA;
w) Project Cold Empire (SDI weapons research-classified);
x) Project Snowbird (pseudo-UFO's used as disinformation);
y) Project Aquarius (UFO research-classified);
x) Project MILSTAR (development and deployment of WW III [space war]
command, control, communication and intelligence satellites);
z) Project Tacit Rainbow (stealth drones/pseudo-UFO's);
aa) Project Timberwind (nuclear-powered spacecraft);
bb) Project Code EVA (space-walk-based technology);
cc) Project Cobra Mist (SDI energy-beam (plasmoid?) weapon research); and
dd) Project Cold Witness (SDI weapons-classified), etc.
WEAPONS INDUSTRY BRANCH
("private" [black project] weapons and covert operations contractors):
a) AT&T (Sandia Labs, Bell Labs, etc. - Star Wars weapons research and NSA telephone/satellite communications interception facilitation); (Sandia Weapons Lab has now reportedly being taken over by Batelle Memorial Institute, a proprietary with reported Intelligence connections);
b) Stanford Research Institute, Inc. (SRI), (an Intelligence contractor involved in psychotronic, parapsychological and PSY-WAR research);
c) RAND Corporation (CIA-front involved in Intelligence projects, weapons development, and underground bases development);
d) Edgerton, Germhausen & Greer Corporation (EG&G), (NSA/DOE-contractor involved in Star Wars weapons development, fusion applications, and security for Area 51 (U.S. UFO-technology aerospace vehicles base) and nuclear installations, etc.);
e) Wackenhut Corporation (NSA/CIA/DOE cut-out contractor) involved in contract security operations for Top Secret Ultra and Black Budget surface and underground military reservations, such as Area S-4 (U.S. UFO base), NV and Sandia National Labs, (Star Wars weapons base), NM), and, reportedly, "dirty jobs" for CIA and Defense Intelligence agencies;
f) Bechtel Corporation (CIA's "ditch-digger" for covert projects and off-the-books underground bases);
g) United Nuclear Corporation (military nuclear applications);
h) Walsh Construction Company (on the CIA projects dole);
i) Aerojet (Genstar Corp.):( makes DSP-1 Star Wars battle satellites for the NRO);
j) Reynolds Electronics Engineering (on CIA/DoD dole);
k) Lear Aircraft Company (Black Budget technology);
l) Northrop Corporation (makes U.S. antigravity craft, back-engineered from alien technology, near Lancaster, CA);
m) Hughes Aircraft (classified projects compartment);
n) Lockheed-Martin Corporation (Black Budget aerospace projects);
o) McDonnell-Douglas Corporation (Black Budget aerospace projects);
p) BDM Corporation (CIA contractor, involved in UFO back-engineering and psychotronic projects, etc.);
q) General Electric Corporation (electronic warfare and weapons systems); and
r) PSI-TECH Corporation (involved in military/Intelligence-applications of research into psychotronics, parapsychology, remote viewing, and contacting extraterrestrial consciousness);
s) Science Applications International Corp. (SAIC); "black projects" contractor, reportedly including psychic warfare.
FINANCIAL DEPARTMENT
(Extra-Constitutional funding):
a) Federal Reserve System (cartel of private banks overseen by elite superwealthy financiers, such as the Rockefellers, Mellons, DuPonts, Rothschilds, etc., which dictates to the Government the flow of money, worth of money, and the interests rates);
b) CIA self-financing (the operation and/or control of much of the international drug trade in heroin, cocaine and marijuana, as well as "front" business enterprises, as a source of cash for off-the-books covert operations, and the purchase of exotic munitions and strategic bribe funds);
c) Department of Justice self-financing (the use of confiscated cash and valuables from "targets of investigation" to finance "special projects");
d) Special Forces self-financing (the self-use of confiscated "booty" from covert military operations to fund other clandestine operations).
What conclusions can be drawn from this preliminary analysis of the structure, functions and operations of the Shadow Government? First, the Shadow Government is a very large, well-organized, skillfully camouflaged, parallel power structure. History suggests that it has served its masters well, and that its predilection for operating out of sight and notoriety, if not in an outright clandestine fashion, is exactly how its masters want it to function -- not drawing attention to itself, manipulating power behind the scenes, and accomplishing by covert operations what cannot lawfully or politically be accomplished out in the open.
What should be the attitude of the informed citizen to the Shadow Government? Since it thrives in the dark, we should shine the light of full disclosure on it. Citizens can demand: the end of the Congressional practice of allowing "Black Budget" items; the end of unpublished secret Executive Orders and National Security Directives; the end of the practice of indefinitely- sustained Presidential Declarations of National Emergency (as is currently in place); the end of Federal Reserve Notes and the return to the gold standard to back the dollar; the end to governmental domestic spying on its own citizens; and extremely severe reduction (on the order of 90%) in the number, staffing and scope of the endlessly proliferating Intelligence agencies, which are an anachronism since the Cold War ended; and an end to CIA and DEA collusion in allowing a continuing stream of drugs to pour into this country. We founded this Country; it's time to take it back.
- Richard J. Boylan, Ph.D.
Fri, 01 Mar 2002 19:16:55 -0000
Subject: [doveofo] True U.S. Shadow Gov: "Majestic Seven" Style Operations
Hello Dear Friends,
I received two calls today about the "big news" on television, newspaper, and radio re: the "shadow government" as indicated in the
excerpt from today's story in the Washington Post newspaper included below. This "news" story is classic "redirection" by the opposition. Yes, the story is "true", BUT the Bush gang have leaked this story to try to CONFUSE the truth about the REAL shadow government.
There has been a shadow government over the U.S. of one kind or another for many decades mainly made up of some of the top international bankers/ Illuminati/ Bilderberger and related groups. The most serious threat to our liberty has been the shadow government known by the code name the Majestic Seven which began operating in the U.S. in the early 1950's. I understand this group has a new code name; however, I will use the original name, Majestic Seven, for purposes of this report. The Majestic Seven has tentacles in major departments of all federal and state governments as well as governments of the rest of the most powerful nations in the world. The truth about the Majestic Seven has been kept from most government officials and even some of U.S. Presidents. I'm told that today about 21% of the government officials and U.S. Military know about
the Majestic Seven shadow government.
This is an especially relevant topic this week because the White Knights and Forces are TARGETING and REMOVING thousands of the "true
shadow government". The White Knights and Forces are removing Majestic Seven people in the U.S. and other countries, as well as some visible government officials who work with the Majestic Seven groups, and various black ops personnel in the U.S. and around the world. On Wednesday, the White Knights and Forces removed over 3,000
of these people; on Thursday they removed over 4,500. Today they are removing over 5,000 of these people in preparation for the NESARA
announcement and the remaining mass deliveries of the prosperity programs in the U.S.
I understand that the Bush gang leaked this story about the "shadow government" as a DIVERSION so that if anyone heard about the White Knights taking action against the "shadow government", people would be mis-directed by the media stories to thinking it was the Bush gang's so-called shadow government. This is a common misdirection
tactic used by the dark agenda opposition when enough people are hearing about something they want to camouflage, the opposition puts out their own version of the story to confuse people.
In addition to being busy removing the true shadow government and black ops personnel, the White Knights and Forces have been busy
countering various efforts by the opposition to delay our deliveries and NESARA with bogus complaints to the World Court. First came the
BOGUS complaint to the World Court from the various departments of Justice of the United Kingdom, Germany, United States, and Italy that
over 82,000 of our people in these four countries in the humanitarian projects prosperity programs were "crooks". These countries attempted to submit into evidence MANUFACTURED files put together in the last 25 months by groups in the CIA. Proof was submitted to the World Court that these files against our people were totally BOGUS
and the World Court threw the opposition's complaint out. The World Court also told these countries the same thing the World Court told
the Bush Senior contingent last week, which was that the Court has seen too much BOGUS information submitted by these parties and is
turning a deaf ear to any more complaints from them.
The next stalling tactic was a complaint to the World Court from some of the big international bankers (who want to KEEP our prosperity money in their banks and therefore have a reason to LIE) that some of our funds are from dirty money. However, once again these bankers only have BOGUS information; this time manufactured by British
Intelligence. Once the World Court received proof that this information was bogus, the World Court also threw this complaint out. Normally the dark agenda opposition have managed to stall
things by 3 to 10 days with these tactics in World Court. However, the opposition has totally FAILED to cause any delays with these tactics this week due to the intervention of the Forces and White Knights in proving these claims were based on FALSE info.
All of us will want to remember these countries' leaders who tried to cause problems for us in the days ahead and understand why the governments of these countries need to be cleaned up.
Some state government officials, judges, and others have also attempted to cause delays for us this week. All these efforts by the opposition have been shut down as well.
I've also mentioned that the Bush gang and friends have been trying to convert stolen valuables into cash. The Forces and White Knights are continuously recovering all the stolen bearer bonds, currency, and other valuables the Bush gang and friends are stealing to try to convert into cash. If the Bush gang has actually managed to convert these things to cash, the Forces are also taking that cash away from the Bushs and friends. In addition, the Forces and White Knights have made a standing practice of taking away the money anyone accepts as a bribe to take action against NESARA and/or our prosperity programs' funding. All these ill-gotten financial gains are returned to the
proper owners or put into funds for future world improvement projects, and the people involved are REMOVED.
I asked the Forces if these people who are acting against NESARA and our prosperity programs are hearing about all the THOUSANDS of people who have been REMOVED. The Forces say that these people ARE hearing about the thousands that have been removed and are refusing to believe this could happen to them. It's the old human nature habit of "denial" and fooling themselves into believing they are invincible.
I've been hearing an increased hard commitment to getting NESARA announced and the corrupt Bush government removed IMMEDIATELY. I'm told this is because the Bush gang intends to attack Iraq next
Wednesday, March 6th , as part of the Bush gang's plan to weaken our country with a long, drawn out war. The White Knights and Forces are determined to get the Bush government OUSTED before then. In the meantime, the Forces and White Knights have been and are continuing to do PRE-EMPTIVE strikes to STOP military commanders and leaders of ALL countries who are trying to get more war going in the Middle East and Korea/Asia. In the last week over 9,000 people, who were trying
to cause heating up of military conflicts in our world, have been removed and their weapons neutralized.
Let's continue our prayers, meditations, and energy work supporting our White Knights, Forces, and all who are bringing us NESARA and our
prosperity. I will meet you for our group energizing at 10-10:30
p.m. EST and let's continue our unified focus:
"NESARA NOW!!!! NESARA NOW!!!! NESARA NOW!!!! NESARA NOW!!!!"
To JOIN the Dove egroup, simply send an email to:
doveofo-subscribe@yahoogroups.com
And REPLY to Yahoo's request for confirmation.
The Forces have also assigned a special project team to shutting down "mind control", "frequency control", and "weather control" technologies on the planet. A lot more will be coming out about how our people and our weather have been controlled by dark agenda technologies. The most recent threat of aerial chemical sprays to cause people to be more susceptible to mind/frequency control has been neutralized. The Forces and White Knights have used special "frequency neutralizing technology" to neutralize these
chemicals everywhere on the planet; they have also contained and neutralized the supplies of these chemicals and the dark agenda people involved in this effort. Even if people have been touched by these chemicals, the frequency neutralizing technology used to sweep the planet this week has removed the danger from people.
I'm hopeful the Forces have cleared most of the Internet interference with people subscribing to the Dove egroup and with Dove reports reaching people. The Forces have dedicated an ongoing project team to dealing with the Internet interference as long as needed.
I've been busy getting my personal life ready for our big moments of NESARA's announcement and our remaining mass prosperity deliveries. I have some family commitments and urgent household repairs that have taken up large chunks of my time the last four days. For this reason, I've been unable to clear out my email Inbox for the last four days and if you've sent me emails, they have probably bounced back at you. I hope to get my email Inbox open again late today. If you have something to send me, please wait until later this evening.
Blessings and Love,
Dove of Oneness
The Dove egroup currently has 6,778 members.
~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~
[Bush gang cover story about 'shadow government' leaked to confuse
public:]
Shadow Government Is at Work in Secret
After Attacks, Bush Ordered 100 Officials to Bunkers Away From Capital to Ensure Federal Survival
By Barton Gellman and Susan Schmidt Washington Post Staff Writers
Friday, March 1, 2002; Page A01
President Bush has dispatched a shadow government of about 100 senior civilian managers to live and work secretly outside Washington, activating for the first time long-standing plans to ensure survival of federal rule after catastrophic attack on the nation's capital.
Chart of who "owns" the Federal Reserve
--------------------------------------------------------------------------------
Created by
Don Allen
Chart 1
Federal Reserve Directors: A Study of Corporate and Banking Influence
Published 1976
Chart 1 reveals the linear connection between the Rothschilds and the Bank of England, and the London banking houses which ultimately control the Federal Reserve Banks through their stockholdings of bank stock and their subsidiary firms in New York. The two principal Rothschild representatives in New York, J. P. Morgan Co., and Kuhn,Loeb & Co. were the firms which set up the Jekyll Island Conference at which the Federal Reserve Act was drafted, who directed the subsequent successful campaign to have the plan enacted into law by Congress, and who purchased the controlling amounts of stock in the Federal Reserve Bank of New York in 1914. These firms had their principal officers appointed to the Federal Reserve Board of Governors and the Federal Advisory Council in 1914. In 1914 a few families (blood or business related) owning controlling stock in existing banks (such as in New York City) caused those banks to purchase controlling shares in the Federal Reserve regional banks. Examination of the charts and text in the House Banking Committee Staff Report of August, 1976 and the current stockholders list of the 12 regional Federal Reserve Banks show this same family control.
--------------------------------------------------------------------------------
N.M. Rothschild , London - Bank of England
______________________________________
| |
| J. Henry Schroder
| Banking | Corp.
| |
Brown, Shipley - Morgan Grenfell - Lazard - |
& Company & Company Brothers |
| | | |
--------------------| -------| | |
| | | | | |
Alex Brown - Brown Bros. - Lord Mantagu - Morgan et Cie -- Lazard ---|
& Son | Harriman Norman | Paris Bros |
| | / | N.Y. |
| | | | | |
| Governor, Bank | J.P. Morgan Co -- Lazard ---|
| of England / N.Y. Morgan Freres |
| 1924-1938 / Guaranty Co. Paris |
| / Morgan Stanley Co. | /
| / | Schroder Bank
| / | Hamburg/Berlin
| / Drexel & Company /
| / Philadelphia /
| / /
| / Lord Airlie
| / /
| / M. M. Warburg Chmn J. Henry Schroder
| | Hamburg --------- marr. Virginia F. Ryan
| | | grand-daughter of Otto
| | | Kahn of Kuhn Loeb Co.
| | |
| | |
Lehman Brothers N.Y -------------- Kuhn Loeb Co. N. Y.
| | --------------------------
?
|
