2015/03/10

Was gold really out since 1971 till 2015 ?

A short comment on Koos's last articles.

Firstly about the Western coup against gold in 1971 :

Dr. Kissinger said that one answer to the question asked this morning was this. When the basic proposition is approved will we be prepared to defend the dollar? His impression was yes and that this was the purpose of the new exchange parities. 
President Pompidou said he knew that the President expected him to speak frankly and he would do so. It was not so much for the French at the present time a question of the price of gold. There had been much talk about this. There was the Rueff theory that the price of gold should be doubled. This was not the question at present. For the present we should consider the general interest as between proponents of a liberal economy. That is, the Western World plus Japan.
[...] 
President Pompidou said that we must not fear words. There was no question of the dollar becoming convertible into gold but if there is a consolidation of U. S. balances and the U.S. defends the dollar. Then the dollar is convertible from currency to currency. He understood the President’s reservation on an immediate statement but that is what it means or then there would be no real defense of the dollar. Dr. Kissinger said that we would have to buy dollars with other currencies in order to defend it. President Pompidou replied that this was correct. There was no other defense. Dr. Kissinger said that gold was out and President Pompidou said he understood this.
Excerpt from the minutes of the meeting between Pompidou, Kissinger and Nixon on December 13, 1971 at 4 PM, Azores.
Simply said, the post-Bretton Woods regime and the demise of gold in the International Monetary System was accepted only in the name of the defense of the Western World, that is, of bank owner's interests
It is significant that this ambition is not shared anymore between the Western leaders, or said differently: the official come-back of gold in the IMS will be at the same time a proof that the Western World's domination by its previous so-called elites does not exist any more, or at least is surrendering.


An secondly: 44 years after the Azores meeting, Xu Luode presents the SGE’s international ambitions in the Indian Bullion Bulletin, volume 5, issue 2, Feb. 2015, pp. 34-36. He is the chairman of the Shanghai Gold Exchange (SGE), Vice Chairman of China Gold Association, Vice Chairman of China Payment and Settlement Association, and the Executive Member of China Finance Society :
The International Board lends greater weight to the importance of Asian gold market on the international stage. China, India, Dubai and Singapore all enjoy vibrant trading scenes and comparative advantages; however, in the eyes of many investors, the influence wielded by the Asian markets is still very limited as a whole. Using the International Board as a launch pad, China’s gold market will embrace greater openness and foster stronger ties with its neighbors and, together, elevate the trading and pricing influence of Asia in the world’s gold market. 
[...] SGE and [US-based] CME have recently signed a Memorandum of Understanding with regards to future cooperation efforts. As a perennial major consumer of gold and a close neighbor of China, India will undoubtedly become one of SGE’s most important partners in the coming years. SGE looks forward to forming close partnerships with the Indian market. 
[...] Furthermore, the SGE will focus on enhancing its transit and leasing businesses, gradually roll out foreign currency-based collateral services and FX swaps, accept offshore funds from more varied sources for International Board transactions, further improve the financial services offered to international members and customers in regards to account opening and cross-border funds transfers.
The strategy for Shanghai Gold Exchange is very clear: to become the Global Exchange Center for monetary metals with affiliates, antennas (call them) in London, Tokyo, all Asia, BRICS main gold Exchanges (including NY with CME's MoU as a first step) in order to seek real market-based price synchronisation all over the world.


In short: since 1971 till 2015, gold was not really out of the IMS, Mr. Kissinger. It was simply pulled out from the West and it has flown to Asia. Now gold is ready to gradually emerge back as a basis of international monetary system.


2015/03/04

Central banking and haute finance have grown at the expense of the people

Our researches have first shown that Western history is wrought or weaved since 17th c. by the interweaving of three rising movements :
  • sabbateanism and frankism - studied through religion, moral philosophy and sociology ;
  • development of deep states and their secret transnational relations - studied through politics and geopolitics ; 
  • haute (international) finance and central banking - studied through politics, sociology and geoeconomics. 
No solution for the ongoing Western crisis can be efficient if any of these three movements remains ignored.

Our study is focusing here on the last aspect. It is revealing how it has continuously grown at the expense of the people, whereas a lot of prominent voices have fought against it over centuries. 

By reading through these quotes arranged in historical perspective, you will have a very clear picture of what was happening and how American people was trapped primarily. 

Then read the Epilogue.

Foreword

"Only puny secrets need protection. Big secrets are protected by public incredulity. You can actually dissipate a situation by giving it maximal coverage. As to alarming people, that's done by rumours, not by coverage." 
(H.M. McLuhan, 1911 - 1980, in 'Take Today : The Executive as Dropout', 1972) 

"Few of us can easily surrender our belief that society must somehow make sense. The thought that the state has lost its mind and is punishing so many innocent people is intolerable. And so the evidence has to be internally denied." 
(A.A. Miller, 1915 - 2005) 

"Follow the money."
(M. Felt, 'Deep Throat', 1913 – 2008) 

Central banking has grown at the expense of the people’s rights 

Samuel Oppenheimer (1635-1703) was Court Jew and Banker under Emperor Leopold I of Austria. 

“The bank hath benefit of interest on all moneys which it creates out of nothing.” – William Paterson, founder of the Bank of England, 1694. 

The grandson of Samuel Oppenheimer taught Meyer Amschel Bauer Rothschild useful knowledge in foreign trade and currency exchange. During this period, Meyer Amschel had occasion to be of service to Lt. Gen. Baron von Estorff who was the principal adviser to Landgrave Frederick II of Hesse-Kassel, one of the wealthiest man in Europe. Frederick was worth from 70 to 100 million florins, much of it inherited from his father, Wilhelm the Eighth, brother of the King of Sweden. Baron von Estorff advised the Landgrave about Mayer Amschel who returned to his brothers' business in Frankfurt in 1763. He became a dealer in rare coins and won the patronage of Frederick II of Hesse-Kassel, and then the patronage of Crown Prince William of Hesse gaining the title of "Court Factor" (Hoffaktor) in 1769. After Frederick's sudden death on 31 October 1785, William became Wilhelm IX von Hessen-Kassel, then Wilhelm I von Hessen after 1805.

“If ever again our nation stumbles upon unfunded paper, it shall surely be like death to our body politic. This country will crash.”- George Washington, 1732-1799. 

“A theft of greater magnitude and still more ruinous, is the making of paper money; it is greater because in this money there is absolutely no real value; it is more ruinous because by its gradual depreciation during the time of its existence, it produces the effect which would be proration of the coins. All those iniquities are founded on the false idea the money is but a sign.”- Count Destutt de Tracy, 1754-1836. 

"The few who understand the system will either be so interested in its profits or so dependent on its favours that there will be no opposition from that class, while on the other hand, the great body of the people mentally incapable of comprehending the tremendous advantage that capital derives from the system will bear its burdens without complaint and perhaps without even suspecting that the system is inimical to their interests."
Letter supposedly sent from the Rothschild Bros. of London in 1863 or 1876, cited in J. F. Rutherford's Vindication, Book II, Chapter 6, 1932. 

Nathan Mayer, Freiherr von Rothschild (1777 – 1836) gained a position of such power in the City of London that by 1825–6 he was able to supply enough coin to the Bank of England to enable it to avert a liquidity crisis. 

“All the perplexities, confusion and distresses in America arise not from defects in the constitution or confederation, nor from want of honor or virtue, as much from downright ignorance of the nature of coin, credit, and circulation.” - John Adams, 1735-1826, letter to Thomas Jefferson. 

“If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks…will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered…. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.”
“Paper is poverty. It is the ghost of money and not money itself.”- Thomas Jefferson, 1743-1826. 

“History records that the money changers have used every form of abuse, intrigue, deceit, and violent means possible to maintain their control over governments by controlling money and its issuance.” – James Madison, 1751-1836. 

“When a government is dependent upon bankers for money, they and not the leaders of the government control the situation, since the hand that gives is above the hand that takes… Money has no motherland; financiers are without patriotism and without decency; their sole object is gain.” – Napoleon Bonaparte, 1769-1821, a sympathizer for the international bankers, turned against them in the last years of his rule. 

“Nothing but widespread suffering will produce any effect on Congress… Our only safety is in pursuing a steady course of firm restriction – and I have no doubt that such a course will ultimately lead to restoration of the currency and the re-charter of the bank.” - Nicholas Biddle, (1786-1844), Banker and American financier. 

[Speaking about international bankers] “You are a den of vipers! I intend to rout you out, and by the Eternal God I will rout you out. If the people only understood the rank injustice of our money and banking system, there would be a revolution before morning.”
“If congress has the right under the Constitution to issue paper money, it was given them to use themselves, not to be delegated to individuals or corporations.”- President Andrew Jackson, 1829-1837. 

“A power has risen up in the government greater than the people themselves, consisting of many and various powerful interests, combined in one mass, and held together by the cohesive power of the vast surplus in banks.” – John C. Calhoun, Vice President (1825-1832) and U.S. Senator, from a speech given on May 27, 1836.

Panic of 1837.

“Of all the contrivances for cheating the laboring classes of mankind, none has been more effective than that which deludes them with paper money.” 
“We are in danger of being overwhelmed with irredeemable paper, mere paper, representing not gold nor silver; no sir, representing nothing but broken promises, bad faith, bankrupt corporations, cheated creditors and a ruined people.” – Daniel Webster, c.1845, leading American statesman. 

“When plunder becomes a way of life for a group of men living together in society, they create for themselves in the course of time, a legal system that authorizes it and a moral code that glorifies it.” – Frederic Bastiat, Economic Sophisms, 1801-1850. 

London-based Junius Spencer Morgan, by 1854, became a London agent of George Peabody. In 1857 the Bank of England gave a loan to George Peabody & Co. and saved it, while 9000 other companies went down in a large financial crash. With this money Peabody bought up large amounts of dirt cheap securities and sold them at a later stage with enormous profits. In 1864, as Peabody retires, George Peabody & Company is renamed to Junius S. Morgan Company. 

“I have two great enemies, the Southern Army in front of me and the bankers in the rear. Of the two, the one at my rear is my greatest foe.” 
“I see in the near future a crisis approaching that unnerves me and causes me to tremble for the safety of my country. As a result of the war, corporations have been enthroned and an era of corruption in high places will follow, and the money power of the country will endeavor to prolong its reign by working upon the prejudices of the people until all wealth is aggregated in a few hands, and the Republic is destroyed. I feel at this moment more anxiety for the safety of my country than ever before, even in the midst of war.” – Abraham Lincoln, In a letter written to William Elkin, 1860. 

“The Government should create, issue, and circulate all the currency and credits needed to satisfy the spending power of the Government and the buying power of consumers. By the adoption of these principles, the taxpayers will be saved immense sums of interest. Money will cease to be master and become the servant of humanity. ” – Abraham Lincoln, 1809-1865. 

“If this mischievous financial policy, which has its’ origins in North America, shall be endured down to a fixture, then that government will furnish its own money without cost. It will pay off its debt and be without debt. It will have all the money necessary to carry on its commerce. It will become prosperous without precedence in the history of the world. The brains and the wealth of all countries will go to North America. That country must be destroyed or it will destroy every monarchy on the globe.” – Editorial in the Times of London, 1862. 

National Bank Act, 1863.

“We have stricken the (slave) shackles from four million human beings and brought all laborers to a common level not so much by the elevation of former slaves as by practically reducing the whole working population, white and black, to a condition of serfdom. While boasting of our noble deeds, we are careful to conceal the ugly fact that by an iniquitous money system we have nationalized a system of oppression which, though more refined, is not less cruel than the old system of chattel slavery.”- Horace Greeley, 1811-1872, founder of the New York Tribune. 

“The money power preys upon the nation in times of peace and conspires against it in times of adversity. It is more despotic than monarchy, more insolent than autocracy, and more selfish than bureaucracy.” – Abe Lincoln, 1864. 

“My agency, in promoting the passage of the National Banking Act was the greatest financial mistake in my life. It has built up a monopoly which affects every interest in the country.” – Chief Justice of the US Supreme Court and Advisor to Lincoln, Salmon P. Chase, 1864. 

“The division of the United States into federations of equal force was decided long before the Civil War by the high financial powers of Europe. These bankers were afraid that the United States, if they remained in one block and as one nation, would attain economic and financial independence, which would upset their financial domination over the world. The voice of the Rothschilds prevailed… Therefore they sent their emissaries into the field to exploit the question of slavery and to open an abyss between the two sections of the Union.” – Otto von Bismarck, German chancellor, 1865. 

“I went to America in the winter of 1872-1873 to secure, if I could, the passage of a bill demonetizing silver. It was in the interest of those I represented – the governors of the Bank of England, to have it done. By 1873 gold coins were the only form of coin money.” – Earnest Seyd, Agent for the Bank of England, 1873. 

Panic of 1873.

“It is advisable to do all in your power to sustain such prominent daily and weekly newspapers, especially the Agricultural and Religious press, as will oppose the Greenback issue of paper money and that you will also withhold patronage from all applicants (for loans) who are not willing to oppose the government issue of money…To repel the act creating bank notes, or to restore to circulation the government issue of money will be to provide the people with money and will therefore seriously affect our individual profits as bankers and lenders. See your congressman at once and engage him to support us, that we may control legislation.” – James Buel, American Bankers Association, 1877. 

“Whoever controls the volume of money in any country is absolute master of all industry and commerce. And when you realize that the entire system is very easily controlled, one way or another by a few powerful men at the top, you will not have to be told how periods of inflation and depression originate.” – President James Garfield, 1881. He was assassinated just weeks after making this statement. 

Panic of 1893.

“We will answer their demand for a gold standard saying to them, ‘You shall not press down upon the brow of labor this crown of thorns; you shall not crucify mankind upon a cross of gold’.” 
“The money power denounces, as public enemies, all who question its methods or throw light upon its crimes.”- William Jennings Brian, 1896. 


Panic of 1907.

“Under the surface, the Rothschilds (the dominant European banking family even today) had a powerful influence in dictating American financial laws. The law records show that they were the power in the old Bank of the United States.” 
Gustavus Myers, in History of the Great American Fortunes, 1907-10. 

“The fact is that there is a serious danger of this country becoming a Pluto-democracy; that is, a sham republic with the real government in the hands of a small clique of enormously wealthy men, who speak through their money, and whose influence, even today, radiates to every corner of the United States.” – William McAdoo, President Wilson's national campaign vice-chairman, wrote in Crowded Years, 1912. 

“Money is gold, and nothing else.” 

“In the present critical stage of American development I would call your attention to the following maxim of the " money lenders " of the Old World : "Let us control the money of a country, and we care not who makes its laws." Those who favor the continuance of banks of issue in this country are to be classified in history with John Sherman and Nelson W. Aldrich and the money power.” 
T.C. Daniel, 1857 - 1923 ; letter to President W. Wilson, May 8, 1913; reported in his statement for the joint hearings before the subcommittees of the Committees on Banking and Currency of the Senate and of the House of Representatives, charged with the investigation of rural credits, Sixty-third Congress, second session, part 1, pp. 664, February 16, 1914; full transcript
Daniel was the author of Real Money versus Bank Credit as a Substitute for Money, 1911, and of The High Cost of Living: Cause — Remedy, 1912 ; 
Further in the statement pp 771 he quoted: 
"Let us control the money of a country and we care not who makes its laws." This is the maxim of the house of Rothschilds, and is the foundation principle of European banks.  
This maxim was well-known in 1910’s. It was quoted again during another Committee in 1939 : 
Give me control of a Nation's money supply, and I care not who makes its laws.” – quoted by Senator Robert L. Owen, former Chairman of the Senate Committee on Banking and Currency and one of the sponsors of the Federal Reserve Act, National Economy and the Banking System, (Washington, D.C.: U.S. Government Printing Office, 1939), p. 99. 

“Since I entered politics, I have chiefly had men's views confided to me privately. Some of the biggest men in the United States, in the field of commerce and manufacture, are afraid of somebody, are afraid of something. They know that there is a power somewhere so organized, so subtle, so watchful, so interlocked, so complete, so pervasive, that they had better not speak above their breath when they speak in condemnation of it. 

They know that America is not a place of which it can be said, as it used to be, that a man may choose his own calling and pursue it just as far as his abilities enable him to pursue it ; because to-day, if he enters certain fields, there are organizations which will use means against him that will prevent his building up a business which they do not want to have built up ; organizations that will see to it that the ground is cut from under him and the markets shut against him. For if he begins to sell to certain retail dealers, to any retail dealers, the monopoly will refuse to sell to those dealers, and those dealers, afraid, will not buy the new man's wares.[...] 

Politics in America is in a case which sadly requires attention. The system set up by our law and our usage doesn't work,—or at least it can't be depended on ; it is made to work only by a most unreasonable expenditure of labor and pains. The government, which was designed for the people, has got into the hands of bosses and their employers, the special interests. An invisible empire has been set up above the forms of democracy. [...] 

The only way that government is kept pure is by keeping these channels open, so that nobody may deem himself so humble as not to constitute a part of the body politic, so that there will constantly be coming new blood into the veins of the body politic ; so that no man is so obscure that he may not break the crust of any class he may belong to, may not spring up to higher levels and be counted among the leaders of the state. Anything that depresses, anything that makes the organization greater than the man, anything that blocks, discourages, dismays the humble man, is against all the principles of progress. When I see alliances formed, as they are now being formed, by successful men of business with successful organizers of politics, I know that something has been done that checks the vitality and progress of society. Such an alliance, made at the top, is an alliance made to depress the levels, to hold them where they are, if not to sink them ; and, therefore, it is the constant business of good politics to break up such partnerships, to re-establish and reopen the connections between the great body of the people and the offices of government. 

To-day, when our government has so far passed into the hands of special interests ; to-day, when the doctrine is implicitly avowed that only select classes have the equipment necessary for carrying on government ; to-day, when so many conscientious citizens, smitten with the scene of social wrong and suffering, have fallen victims to the fallacy that benevolent government can be meted out to the people by kind-hearted trustees of prosperity and guardians of the welfare of dutiful employees,—to-day, supremely, does it behoove this nation to remember that a people shall be saved by the power that sleeps in its own deep bosom, or by none ; shall be renewed in hope, in conscience, in strength, by waters welling up from its own sweet, perennial springs. Not from above ; not by patronage of its aristocrats. [...] 

The great monopoly in this country is the monopoly of big credits. So long as that exists, our old variety and freedom and individual energy of development are out of the question. A great industrial nation is controlled by its system of credit. Our system of credit is privately concentrated. The growth of the nation, therefore, and all our activities are in the hands of a few men who, even if their action be honest and intended for the public interest, are necessarily concentrated upon the great undertakings in which their own money is involved and who necessarily, by very reason of their own limitations, chill and check and destroy genuine economic freedom. This is the greatest question of all, and to this statesmen must address themselves with an earnest determination to serve the long future and the true liberties of men. 

This money trust, or, as it should be more properly called, this credit trust, of which Congress has begun an investigation, is no myth; it is no imaginary thing. It is not an ordinary trust like another.[…] 

Shall we try to get the grip of monopoly away from our lives, or shall we not? Shall we withhold our hand and say monopoly is inevitable, that all that we can do is to regulate it? Shall we say that all that we can do is to put government in competition with monopoly and try its strength against it? Shall we admit that the creature of our own hands is stronger than we are? We have been dreading all along the time when the combined power of high finance would be greater than the power of the government. Have we come to a time when the President of the United States or any man who wishes to be the President must doff his cap in the presence of this high finance, and say, "You are our inevitable master, but we will see how we can make the best of it?" 

We are at the parting of the ways. We have, not one or two or three, but many, established and formidable monopolies in the United States. We have, not one or two, but many, fields of endeavor into which it is difficult, if not impossible, for the independent man to enter. We have restricted credit, we have restricted opportunity, we have controlled development, and we have come to be one of the worst ruled, one of the most completely controlled and dominated, governments in the civilized world—no longer a government by free opinion, no longer a government by conviction and the vote of the majority, but a government by the opinion and the duress of small groups of dominant men. 

If the government is to tell big business men how to run their business, then don't you see that big business men have to get closer to the government even than they are now? Don't you see that they must capture the government, in order not to be restrained too much by it? Must capture the government? They have already captured it. Are you going to invite those inside to stay inside? They don't have to get there. They are there. Are you going to own your own premises, or are you not? That is your choice. Are you going to say: "You didn't get into the house the right way, but you are in there, God bless you ; we will stand out here in the cold and you can hand us out something once in a while?" 

At the least, under the plan I am opposing, there will be an avowed partnership between the government and the trusts. [...] 

There is no hope to be seen for the people of the United States until the partnership is dissolved.  –  T.W. Wilson, 28th President of the US, 1856 – 1924 ; The New Freedom: A Call for the Emancipation of the Generous Energies of a People, 1913. 

“On September 1st, 1894, we will not renew our loans under any consideration. On September 1st, we will demand our money. We will foreclose and become mortgagees in possession. We can take two-thirds of the farms west of the Mississippi as well, at our own price…Then the farmers will become tenants, as in England.” – in a 1891 American Bankers Association Memo, recorded as testimony in the Congressional Record, April 29th, 1913. 

“This act establishes the most gigantic trust on earth. When the president signs this bill, the ‘invisible government’ by monetary power will be legalized. The people may not know it yet, but the day of reckoning is only a few years removed…The worst legislative crime of the ages is perpetrated by this banking bill.” – Rep. Charles Lindbergh Sr., father of the famed aviator, just prior to the passage of the Glass Owen Act that established the Federal Reserve System.
The bill was literally snuck through the congress on Dec. 22, 1913. Many senators had already left for the holidays after being reassured by the leadership that nothing would be done on the bill until after they returned from their Christmas recess the following January. All evidently believed that the congressional session had been legally retired for their customary holiday break, but this certainly could be construed as a ruse. And so it transpired that on December 22, 1913, under the shepherding of President Wilson and certain congressmen of both sides of the political spectrum, and with at least 27 Senators absent on holiday recess, the Federal Reserve Act passed. The bill provided for a privately owned central bank, disguised as the Federal Reserve System, to not only issue this nation’s currency but to charge interest against that currency. Today we owe our current national debt to the bank corporations that privately own the Federal Reserve Bank, with the exception, that is, of the debt paper the Fed regularly sells to other nations like China. The Fed accepts dollar reserves from foreign customers and sells them US government bonds in return. This is how the Federal Government borrows from foreign lenders.) 

Federal Reserve Act, 1913

“To cause high prices all the Federal Reserve Board will do will be to lower the rediscount rate producing an expansion of credit and rising stock market, then when business men are adjusted to these conditions, it can check prosperity in mid career by raising the rate of interest. It can cause the pendulum of a rising and falling market to swing gently back and forth by slight changes in the discount rate, or cause violent fluctuations by greater rate variation and in either case, it will possess inside information as to financial conditions and advanced knowledge of the coming change, either up or down. This is the strangest and most dangerous advantage ever placed in the hands of a special privilege class by any government that ever existed. The system is private, conducted for the sole purpose of obtaining the greatest possible profits from the use of other peoples’ money. They know in advance when to create panics to their advantage, and they also know when to stop panic. Inflation and deflation work equally well for them when they control finance.” – Rep. Charles Lindbergh Sr., 1914.

“Every effort has been made by the Federal Reserve Board to conceal its power but the truth is the Federal Reserve Board has usurped the government of the United States. It controls everything here and it controls all our foreign relations. It makes and breaks governments at will. No man and no body of men is more entrenched in power than the arrogant credit monopoly which operates the Federal Reserve Board and the Federal Reserve banks. These evil-doers have robbed this country of more than enough money to pay the national debt. What the Government has permitted the Federal Reserve Board to steal from the people should now be restored to the people.” - Rep. Lewis McFadden, Chairman of the House Banking and Currency Committee, 1914.
McFadden rose from office boy to become cashier and then President of the First National Bank in Canton Ohio. For 12 years he served as Chairman of the Committee on Banking and Currency, making him one of the foremost financial authorities in America. He fought continuously for fiscal integrity and a return to constitutional government. 

“They have created a super state controlled by international bankers and international industrialists acting together to enslave the world for their own pleasure.” – Rep. Lewis McFadden, Chairman of the House Banking and Currency Committee, 1914. 

"The death of Lincoln was a disaster for Christendom. There was no man in the United States great enough to wear his boots and the bankers went anew to grab the riches. I fear that foreign bankers with their craftiness and tortuous tricks will entirely control the exuberant riches of America and use it to systematically corrupt modern civilization. They will not hesitate to plunge the whole of Christendom into wars and chaos in order that the earth shall become their (the bankers’) inheritance."

“In March, 1915, the J.P. Morgan interests, the steel, shipbuilding, and powder interest, and their subsidiary organizations, got together 12 men high up in the newspaper world and employed them to select the most influential newspapers in the United States and sufficient number of them to control generally the policy of the daily press….They found it was only necessary to purchase the control of 25 of the greatest papers. “An agreement was reached; the policy of the papers was bought, to be paid for by the month; an editor was furnished for each paper to properly supervise and edit information regarding the questions of preparedness, militarism, financial policies, and other things of national and international nature considered vital to the interests of the purchasers.”- Oscar Callaway, U.S. Congressman, 1917. 

“These international bankers and Rockefeller-Standard Oil interests control the majority of the newspapers and the columns in those papers to club into submission or drive out of office officials who refuse to do the bidding of the powerful corrupt cliques which compose the invisible government.” – Theodore Roosevelt, as reported in the New York Times, March 27th, 1922. 

“This warning of Theodore Roosevelt has as much timelessness today, for the real menace to our republic is this invisible government which spreads its tentacles like a giant octopus and sprawls its slimy length over city, state and nation. It seizes in its long and powerful tentacles our executive officers, our legislative bodies, our schools, our courts, our newspapers and every agency created for the public protection…To depart from mere generalizations, let me say that at the head of this octopus are the Rockefeller-Standard Oil interests and a small group of powerful banking houses generally referred to as the international bankers. The little coterie of powerful international bankers virtually run the United States government for their own selfish purposes. They practically control both parties, write political platforms, make cat’s-paws of party leaders, use the leading men of private organizations, and resort to every device to place in nomination for high public office only such candidates as will be amenable to the dictates of corrupt big business. These international bankers and Rockefeller-Standard Oil interests control the majority of newspapers and magazines in this country. They use the columns of these papers to club into submission or drive out of office public officials who refuse to do the bidding of the powerful corrupt cliques which compose the invisible government. It operates under cover of a self-created screen [and] seizes our executive officers, legislative bodies, schools, courts, newspapers and every agency created for the public protection.” – New York City Mayor John F. Hylan, New York Times, March 26, 1922.

“Capital must protect itself in every possible manner by combination and legislation. Debts must be collected, bonds and mortgages must be foreclosed as rapidly as possible. When, through a process of law, the common people lose their homes they will become more docile and more easily governed through the influence of the strong arm of government, applied by a central power of wealth under control of leading financiers. This truth is well known among our principal men now engaged in forming an imperialism of Capital to govern the world. By dividing the voters through the political party system, we can get them to expend their energies in fighting over questions of no importance. Thus by discreet action we can secure for ourselves what has been so well planned and so successfully accomplished.” - USA Banker’s Magazine, August 25, 1924. 

“I am afraid the ordinary citizen will not like to be told that the banks can, and do, create money…And they who control the credit of the nation direct the policy of Governments and hold in the hollow of their hands the destiny of the people.” - Reginald McKenna, former Chancellor of the Exchequer, January 24, 1924.

“It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning.” - Henry Ford, circa 1925. 

“I see nothing in the present situation that is either menacing or warrants pessimism… I have every confidence that there will be a revival of activity in the spring, and that during this coming year the country will make steady progress.” — Andrew W. Mellon, U.S. Secretary of the Treasury, December 1929.  

“Sell all of your stock now. Don’t ask any questions.” – Joseph P. Kennedy to his friend, father of Ed Kerrigan, 1929. 
Right before the crash. During the Great Depression, Joseph P. Kennedy’s worth grew from four million dollars in 1929 to over 100 million dollars in 1935. Apparently he had insider information and knew what the Federal Reserve intended to do. 

“The Federal Reserve Bank of New York is eager to enter into close relationship with the Bank for International Settlements….The conclusion is impossible to escape that the State and Treasury Departments are willing to pool the banking system of Europe and America, setting up a world financial power independent of and above the Government of the United States….The United States under present conditions will be transformed from the most active of manufacturing nations into a consuming and importing nation with a balance of trade against it.”- Rep. Louis McFadden – Chairman of the House Committee on Banking and Currency quoted in the New York Times (June 1930). 

“After WWI, Germany fell into the hands of the German International Bankers. Those bankers bought her and they now own her, lock, stock and barrel. They purchased her industries, they have mortgages on her soil, they control her production; they control all her public utilities. The International German Bankers have subsidized the present government of Germany and they have also supplied every dollar of the money Adolf Hitler has used in his lavish campaign to build up a threat to the government of Bruening. When Bruening fails to obey the orders of the German International Bankers, Hitler is brought forth to scare the Germans into submission. Through the Federal Reserve Board over thirty billions of dollars was pumped into Germany…You have all heard of the spending that has taken place in Germany…modernistic dwellings, her great planetariums, her gymnasiums, her swimming pools, her fine public highways, her perfect factories….All this was done with our money. All this was given to Germany through the Federal Reserve Board. The Federal Reserve Board has pumped so many billions of dollars into Germany that they dare not name the total.” – Rep. Lewis T. McFadden, Chairman of the House Banking and Currency Committee, 1931.

“We have, in this country, one of the most corrupt institutions the world has ever known. I refer to the Federal Reserve Board. This evil institution has impoverished the people of the United States and has practically bankrupted our government. It has done this through the corrupt practices of the moneyed vultures who control it.” – Congressman Louis T. McFadden in 1932. 

Gold Confiscation: Executive Order 6102, 1933. 

“I had a nice talk with Jack Morgan the other day and he seemed more worried about Tugwell's speech than about anything else, especially when Tugwell said, "From now on property rights and financial rights will be subordinated to human rights." J.P.M. did not seem much troubled over the gold purchasing, and confessed that he had been completely misled in regard to the Federal expenditures. The real truth of the matter is, as you and I know, that a financial element in the larger centers has owned the Government ever since the days of Andrew Jackson — and I am not wholly excepting the Administration of WW — The country is going through a repetition of Jackson's fight with the Bank of the United Stated - only on a far bigger and broader basis.” 
F.D. Roosevelt, 1882 – 1945 ; Letter to Col. Edward Mandell House, 21 November 1933 ; in F.D.R.: His Personal Letters, 1928-1945, edited by Elliott Roosevelt, New York: Duell, Sloan and Pearce, 1950, p. 373. 
Rexford Tugwell was one of FDRs economic advisors. At the time he was Assistant Secretary of the United States Department of Agriculture. 
WW is the president W. Wilson. 
Andrew Jackson was president from 1829 to 1837. He was strongly opposed to the Second Bank of the United States, a precursor to the modern Federal Reserve Bank. 

“Thus, our national circulating medium is now at the mercy of loan transactions of banks, which lend, not money, but promises to supply money they do not possess.” – Irving Fisher, 100% Money, 1935.

"The Rothschilds introduced the rule of money into European politics. The Rothschilds were the servants of money who undertook the reconstruct the world as an image of money and its functions. Money and the employment of wealth have become the law of European life; we no longer have nations, but economic provinces." 
Prof. Wilhelm, German historian, New York Times, July 8, 1937. 

“We are completely dependent on the commercial banks. Someone has to borrow every dollar we have in circulation, cash, or credit. If the banks create ample synthetic money we are prosperous; if not, we starve. We are absolutely without a permanent money system. When one gets a complete grasp of the picture, the tragic absurdity of our hopeless position is almost incredible, but there it is. It [the banking problem] is the most important subject intelligent persons can investigate and reflect upon. It is so important that our present civilization may collapse unless it becomes widely understood and the defects are remedied very soon.” 
“Money is the most important subject intellectual persons can investigate and reflect upon. It is so important that our present civilization may collapse unless it is widely understood and its defects remedied very soon.” – Robert H. Hemphill, circa 1939, former credit manager, Federal Reserve Bank of Atlanta. 

“Bankers own the earth; take it away from them but leave them with the power to create credit; and, with a flick of a pen, they will create enough money to buy it back again… If you want to be slaves of bankers and pay the cost of your own slavery, then let the bankers control money and control credit.”- Sir Josiah Stamp, Director, Bank of England, 1940. 

“You have to choose [as a voter] between trusting to the natural stability of gold and the natural stability of the honesty and intelligence of the members of the Government. And, with due respect for these gentlemen, I advise you, as long as the Capitalist system lasts, to vote for gold.” – George Bernard Shaw, 1856-1950. 

“In the United States today, we have two governments. We have the duly constituted government and then we have and independent, uncontrolled and uncoordinated government in the Federal Reserve System operating the money powers which are reserved for Congress by the Constitution.” – Rep. Wright Patman, 1893-1976.
Congressman Wright Patman was Chairman of the House of Representatives Committee on Banking and Currency for 40 years. For 20 of those years, he introduced legislation to repeal the Federal Reserve Banking Act of 1913.  

“I am concerned for the security of our great nation; not so much because of any threat from without, but because of the insidious forces working from within.” - General Douglas MacArthur, 1880-1964. 

“We shall have world government, whether or not we like it. The question is only whether world government will be achieved by consent or by conquest.” — James Warburg, son of CFR [Council on Foreign Relations] founder Paul Warburg, testimony before the Senate Foreign Relations Committee on February 17, 1950

“Today the path to total dictatorship in the U.S. can be laid by strictly legal means… We have a well-organized political-action group in this country, determined to destroy our Constitution and establish a one-party state… It operates secretly, silently, continuously to transform our Government… This ruthless power-seeking elite is a disease of our century… This group…is answerable neither to the President, the Congress, nor the courts. It is practically irremovable.” – Senator William Jenner, 1954 speech.

“The banks do create money. They have been doing it for a long time, but they didn’t quite realize it, and they did not admit it. Very few did. You will find it in all sorts of documents, financial textbooks, etc. But in the intervening years, and we must all be perfectly frank about these things, there has been a development of thought, until today I doubt very much whether you would get many prominent bankers to attempt to deny that banks create credit.” - H. W. White, 1955, Chairman of the Associated Banks of New Zealand, to the New Zealand Monetary Commission. 

“The individual is handicapped by coming face-to-face with a conspiracy so monstrous he cannot believe it exists. The American mind simply has not come to a realization of the evil which has been introduced into our midst. It rejects even the assumption that human creatures could espouse a philosophy which must ultimately destroy all that is good and decent.” — J. Edgar Hoover, The Elks Magazine, 1956.

“Most Americans have no real understanding of the operations of the international moneylenders… the accounts of the Federal Reserve have never been audited. It operates outside the control of Congress and … manipulates the credit of the United States”- Sen. Barry Goldwater, circa 1964. 

“The powers of financial capitalism had (a) far-reaching aim, nothing less than to create a world system of financial control in private hands able to dominate the political system of each country and the economy of the world as a whole. This system was to be controlled in a feudalist fashion by the central banks of the world acting in concert, by secret agreements arrived at in frequent meetings and conferences. The apex of the systems was to be the Bank for International Settlements in Basel, Switzerland; a private bank owned and controlled by the world’s central banks which were themselves private corporations. Each central bank…sought to dominate its government by its ability to control Treasury loans, to manipulate foreign exchanges, to influence the level of economic activity in the country, and to influence cooperative politicians by subsequent economic rewards in the business world.” - Professor Carroll Quigley of Georgetown University, in Tragedy and Hope: A History of The World in Our Time, 1966. 

“But the opposition to the gold standard in any form — from a growing number of welfare-state advocates — was prompted by a much subtler insight: the realization that the gold standard is incompatible with chronic deficit spending (the hallmark of the welfare state). Stripped of its academic jargon, the welfare state is nothing more than a mechanism by which governments confiscate the wealth of the productive members of a society to support a wide variety of welfare schemes. A substantial part of the confiscation is effected by taxation. But the welfare statists were quick to recognize that if they wished to retain political power, the amount of taxation had to be limited and they had to resort to programs of massive deficit spending, i.e., they had to borrow money, by issuing government bonds, to finance welfare expenditures on a large scale.[…] 

The abandonment of the gold standard made it possible for the welfare statists to use the banking system as a means to an unlimited expansion of credit. They have created paper reserves in the form of government bonds which — through a complex series of steps — the banks accept in place of tangible assets and treat as if they were an actual deposit, i.e., as the equivalent of what was formerly a deposit of gold. The holder of a government bond or of a bank deposit created by paper reserves believes that he has a valid claim on a real asset. But the fact is that there are now more claims outstanding than real assets. […] 

The financial policy of the welfare state requires that there be no way for the owners of wealth to protect themselves. 

This is the shabby secret of the welfare statists' tirades against gold. Deficit spending is simply a scheme for the confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights. If one grasps this, one has no difficulty in understanding the statists' antagonism toward the gold standard.” 
Alan Greenspan, 1926 - ; Gold and Economic Freedom, 1966.

“David Rockefeller is the most conspicuous representative today of the ruling class, a multinational fraternity of men who shape the global economy and manage the flow of its capital. Rockefeller was born to it, and he has made the most of it. But what some critics see as a vast international conspiracy, he considers a circumstance of life and just another day’s work… In the world of David Rockefeller it’s hard to tell where business ends and politics begins” – Bill Moyers, White House Press Secretary, July 8, 1965 – January 1967. 

“The depression was the calculated ‘shearing’ of the public by the World Money powers, triggered by the planned sudden shortage of supply of call money in the New York money market….The One World Government leaders and their ever close bankers have now acquired full control of the money and credit machinery of the U.S. via the creation of the privately owned Federal Reserve Bank.” - Curtis Dall, son-in-law to FDR, in “My Exploited Father-in-Law”, 1970.  

“Banks lend by creating credit. They create the means of payment out of nothing.” – Ralph M. Hawtrey, 1879-1975, former Secretary of Treasury, England. 

“Every circulating FRN (Federal Reserve Note) represents a one dollar debt to the Federal Reserve System.” – House Banking and Currency Committee, Money Facts, circa 1970. 

“When you or I write a check there must be sufficient funds in our account to cover the check, but when the Federal Reserve writes a check there is no bank deposit on which that check is drawn. When the Federal Reserve writes a check, it is creating money.” – Federal Reserve Bank, Boston, “Putting It Simply”, circa 1970.  

“The process by which banks create money is so simple that the mind is repelled.” - John K. Galbraith, “Money: Whence it came, where it went”, 1975. 

“Neither paper currency nor deposits have value as commodities, intrinsically; a ‘dollar’ bill is just a piece of paper. Deposits are merely book entries.” – Federal Reserve Bank of Chicago, Modern Money Mechanics Workbook, 1975. 

“The Rockefellers and their allies have, for at least fifty years, been carefully following a plan to use their economic power to gain political control of first America, and then the rest of the world. Do I mean conspiracy? Yes, I do. I am convinced there is such a plot, international in scope, generations old in planning, and incredibly evil in intent.” - Congressman Larry P. McDonald, November 1975, from the introduction to a book titled The Rockefeller File.

“The drive of the Rockefellers and their allies is to create a one-world government combining super capitalism and Communism under the same tent, all under their control…. Do I mean conspiracy? Yes I do. I am convinced there is such a plot, international in scope, generations old in planning, and incredibly evil in intent.” - Congressman Larry P. McDonald, 1976. 
“I have never seen more Senators express discontent with their jobs….I think the major cause is that, deep down in our hearts, we have been accomplices in doing something terrible and unforgivable to our wonderful country. Deep down in our heart, we know that we have given our children a legacy of bankruptcy. We have defrauded our country to get ourselves elected.” - Senator John Danforth, circa 1980. 

The word “cartel” has here assumed the stigma of a bogeyman which the politicians are constantly attacking. The fact of the matter is that most of these politicians are highly insular and nationalistic and because the political organization of the world has under such influence been so backward, business people who have had to cope realistically with international problems have had to find ways for getting through and around stupid political barriers. 
John Foster Dulles to Lord McGowan, Chairman of Imperial Chemical Industries ; in N. Lisagor, F. Lipsius, A law unto itself: the untold story of the law firm of Sullivan & Cromwell, New York: Morrow, 1988, p. 127. 

“The study of money, above all other fields in economics, is one in which complexity is used to disguise truth or to evade truth, not to reveal it.” – John Kenneth Galbraith, circa 1990.

“Who controls the money, controls the world.” – Henry Kissinger, circa 1995, Council on Foreign Relations. 

“Lord Rothschild had access to all manner of leaders and experts. He was responsible only to the Prime Minister and answerable to neither the electorate nor the civil service chiefs.”- Derek Wilson, circa 1995, leading biographer and author. 

"For more than a century, ideological extremists at either end of the political spectrum have seized upon well-publicized incidents such as my encounter with Castro to attack the Rockefeller family for the inordinate influence they claim we wield over American political and economic institutions. Some even believe we are part of a secret cabal working against the best interests of the United States, characterizing my family and me as 'internationalists' and of conspiring with others around the world to build a more integrated global political and economic structure — one world, if you will. If that is the charge, I stand guilty, and I am proud of it. 

The anti-Rockefeller focus of these otherwise incompatible political positions owes much to Populism. "Populists" believe in conspiracies and one of the most enduring is that a secret group of international bankers and capitalists, and their minions, control the world's economy. Because of my name and prominence as head of the Chase for many years, I have earned the distinction of "conspirator in chief" from some of these people. 

Populists and isolationists ignore the tangible benefits that have resulted in our active international role during the past half-century. Not only was the very real threat posed by Soviet Communism overcome, but there have been fundamental improvements in societies around the world, particularly in the United States, as a result of global trade, improved communications, and the heightened interaction of people from different cultures. Populists rarely mention these positive consequences, nor can they cogently explain how they would have sustained American economic growth and expansion of our political power without them." 
D. Rockefeller Senior, 1915 – ; Memoirs, Ch. 27:"Proud Internationalist", 2002. 

“The dollar has clearly been abandoned and foreigners are starting to bail from dollar-denominated assets in droves. This is where bailouts, and the hyperinflationary destruction of the dollar that comes with them, are leading us, along with miniscule bond rates caused by continual flights to “security” as everyone flees in terror due to rapidly deteriorating market conditions caused by subprime fallout, over-leveraged speculation, fraudulent lending and borrowing, lack of oversight, transparency and confidence, frozen credit markets, an out-of-control money supply, profligate borrowing and spending, as well as an economy destroyed in less than two decades by globalization, free trade, off-shoring, outsourcing, unrestrained illegal immigration, insane wars for profit and the rampant inflation and unemployment that come from a completely, totally and malevolently mismanaged economy thanks to the reprobates and sociopaths that run the Fed and our government.” - Bob Chapman, International Forecaster, 2008. 

“From the earliest days, the Rothschilds appreciated the importance of proximity to politicians, the men who determined not only the extent of budget deficits but also the domestic and foreign policies…” - Niall Ferguson, Professor of History at Harvard University and William Ziegler Professor at Harvard Business School, The Ascent of Money: A Financial History of the World, 2008. 

Epilogue 

"There is the moral of all human tales:
'Tis but the same rehearsal of the past,
First freedom, and then glory -- when that fails,
Wealth, vice, corruption -- barbarism at last."
G.G. Noel, 'Lord Byron', 1788 - 1824 ; Childe Harold's Pilgrimage, 1812. 

Is the conception of history outlined here yet another conspiracy story? As D. Estulin points out,
it’s not a conspiracy theory. It’s a conspiracy reality. These organizations–the Bilderbergers, the Trilateral Commission, the Council on Foreign Relations, Bohemian Grove–they’re not the power centers of anything really. They’ve had an important role to play in the past, especially Bilderbergers, but much less so today as its role has been diminished. Today these organizations, they’re basically conveyor belts of opportunities. The real decision making process is done at a much higher level. That said, it’s an important medium-sized organization where a lot of important decision making processes are debated and passed on to higher organizations, higher entities, to where these debates are put together into a concrete policy initiative.

Indeed, if a lot of people are now aware of the ongoing fall, how many know and agree on the solution for the geo-economic part of the problem ?

Still not enough in the West but certainly a lot more in Eurasia, including key peoples. 


"Power concedes nothing without a demand. It never did and it never will. Find out just what any people will quietly submit to and you have found out the exact measure of injustice and wrong which will be imposed upon them, and these will continue till they are resisted with either words or blows, or with both. The limits of tyrants are prescribed by the endurance of those whom they oppress." 
F.A.W. Bailey, 'Frederick Douglass', 1818 - 1895. 


"Justice is conscience, not a personal conscience but the conscience of the whole of humanity. Those who clearly recognize the voice of their own conscience usually recognize also the voice of justice." 
A.I. Solzhenitsyn, 1918 – 2008 ; Letter to three students, October 1967. 

"In keeping silent about evil, in burying it so deep within us that no sign of it appears on the surface, we are implanting it, and it will rise up a thousand fold in the future. When we neither punish nor reproach evildoers, we are not simply protecting their trivial old age, we are thereby ripping the foundations of justice from beneath new generations." 
A.I. Solzhenitsyn, 1918 – 2008 ; The Gulag Archipelago, 1958-68. 

"The simple act of an ordinary brave man is not to participate in lies, not to support false actions! His rule: let that come into the world, let it even reign supreme -- only not through me. But it is within the power of writers and artists to do much more: to defeat the lie! For in the struggle with lies art has always triumphed and shall always triumph! Visibly, irrefutably for all! Lies can prevail against much in this world, but never against art." 
A.I. Solzhenitsyn, 1918 – 2008 ; Nobel Prize acceptance speech, 1970. 


If you can't eliminate injustice, at least tell everyone about it. 
A. Shariati, 1933 - 1977. 

_________________________

Sources used: Prof77 (2011); Conscience Sociale (2011-2014); Lawrence Wilson, Central Banks and the History of Banking in America, 2010 ; The Money Masters

For more details see also: 


2015/02/14

Gold Bills reloaded: letters of credit


Pr. Fekete and the New Austrian School of Economy have for many years advocated an unadulterated gold standard, based on gold coins, gold bills, gold bonds and their respective clearing houses.

Gold bills are a form of letters of credit (or bills of exchange) with a maturity of 3 months, and which can be settled in gold coins (or bullions). 
Letters of credit are used since millenia. They were invented shortly after Cresus introduced the gold (or electrum) coins. Significantly, the oldest mentions of gold coins known in history are located in Anatolia (now part of Turkey) namely with Cresus and the river Pactole; and the oldest mention of letters of credit was written by Ciceron in 50 B.C. (in Epistulae ad familiares, book 3:5:4; here is one of the first translation from latin to old french, published 1542) about his travel in Laodicae, an important town in Cilicia (Anatolia). 

Letters of credit have since been used in many different countries, together with the expansion of international trade. They have been widely adopted into what Adam Smith has described as being "real bills", underscoring that he has not invented them but only described in a doctrine their universal use. Fekete has demonstrated the relevance of Real Bills doctrine for an unadulterated, modern and resilient gold-based monetary system, calling them Gold Bills.

I have anticipated the increasing use of Gold Bills in international trade, replacing US dollar, writing specifically that the experience of Turkish banks in the international trade of Iranian oil during international sanctions will be a relevant knowledge. 

Nowadays you can find on the largest Turkish bullion bank's web site a full range of banking services for using letters of credit in international trade :

A Letter of credit (L/C) is one of the payment types in foreign trade that provides the parties involved with more security. In other words, it is a conditional payment order issued by a bank upon the instruction of a buyer (applicant) in favor of a seller (beneficiary), via a foreign correspondent bank. Upon receipt of a letter of credit, the beneficiary realizes shipment of the stipulated goods and presents strictly complying documents to the correspondent bank and claims the credit amount. A letter of credit may be issued so that payment is to be effected against presentation of conforming documents (sight L/C), or at a certain maturity date (deferred payment L/C) or at the maturity of a bill of exchange accepted by either the issuing bank or the correspondent bank (acceptance L/C). In a letter of credit mechanism, a correspondent bank may assume the risk of the issuing bank, hence, that of the applicant which makes it a confirming bank.
Due to their reliability and internationally acceptability, letters of credit are widely used in import and export transaction.
Kuveyt Turk, with its widespread correspondent network and with its staff highly specialized in foreign operations, provides to its customers all kind of L/C transactions.
Kuveyt Turk’s Client is Exporter:
  • Exporter countersigns the sales contact with the buyer.
  • The buyer instruct his bank to issue a letter of credit complying with terms of sales contract.
  • Exporter receives the letter of credit from Kuveyt Turk.
  • The goods are shipped and/or services supplied. Shipping documents are presented by exporter to Kuveyt Turk’s branches subsequently.
  • If documents are in compliance with credit terms and conditions, you are either paid or receive a payment undertaking to be paid at a future date, depending on the payment terms of the letter of credit.
  • These documents are sent to the issuing bank.
  • The buyer then uses these documents to clear the goods from customs.
Kuveyt Turk’s Client is Importer:
  • Importer countersigns the sales contact with the buyer.
  • Importer instructs Kuveyt Turk to issue a letter of credit in respect of conditions stipulated in sales contract.
  • Professional and skilled staff of Kuveyt Turk issues the L/C.
  • Seller ships the goods and/or supplies the services.
  • Exporter presents the required documents to Kuveyt Turk through his bank, which is called as “presenting bank”.
  • The seller is paid or receives a payment undertaking to be paid at a future date, depending on the payment terms of the letter of credit.
  • Experts of Kuveyt Turk check the documents, debit your account in case that the L/C is available by payment at sight and documents are credit conforming, and subsequently deliver documents to the importer.
  • Importer clears the goods from the customs.

The different types of L/C are:

Revocable L/C
Revocable L/C can be amended or cancelled at any time by the importer without the consent of the exporter. This option is not often used, as there is little protection for the exporter. According to UCP Rules, all letters of credit are irrevocable, unless otherwise stated.
Irrevocable L/C
Irrevocable L/C can only be changed or cancelled with the consent of all the parties. The seller must comply with the terms and conditions of the credit in order to receive payment.
Confirmed L/C
In some instances, exporters may request a credit to be confirmed by another bank, (usually a bank in their own country). If a bank adds its confirmation to a credit, it means that it is obliged to pay if the terms and conditions of the credit are complied with. This obligation to pay exists even if the issuing bank or country defaults.
Unconfirmed L/C
The advising bank forwards an unconfirmed letter of credit directly to the exporter without adding its own undertaking to make payment or accept responsibility for payment at a future date, but confirming its authenticity.
Sight Payment L/C
The issuing bank and confirming bank, if available, assume the irrevocable obligation on behalf of the buyer to effect immediate payment (at sight) to the beneficiary (the exporter) subject to the presentation of credit conforming documents within a prescribed period of time and fulfillment of any other applicable terms and conditions.
Deferred Payment L/C
The issuing bank and confirming bank, if available, undertake to effect payment at a specified later date (for instance, 180 days after the date of shipment) under a deferred payment L/C subject to the presentation of the credit conforming documents within the validity of the documentary credit. As such, the due date must be clear from the credit. The exporter thus grants the importer time to pay.
Negotiation L/C
Under L/C available by negotiation, the exporter receives an advance payment from the negotiating bank on presentation of the required documents. If negotiating bank does not act as confirming bank, it has the right to seek recourse from the exporter if cover is not received from the issuing bank.
Acceptance L/C
The accepting bank guarantees payment to the holder of the bill of exchange on maturity date regardless of whether the credit is confirmed or not. Draft is usually drawn on issuing bank if the credit is not confirmed and it is drawn on confirming bank if the credit is confirmed one.
Transferable L/C
This is normally used when the exporter is not supplying the goods and wishes to transfer all or part of the responsibilities under the credit to the suppliers. With a transferable credit, the first beneficiary posses the option to instruct the transferring bank to transfer the L/C to the end supplier (the second beneficiary) either in full or in part.
Red Clause L/C
This enables the exporter to obtain advance payment before shipment. This is provided against the exporter's certificate confirming its undertaking to ship the goods and to present the documents in compliance with the terms and conditions of the documentary credit.
Green Clause L/C
Similar to a Red Clause Credit, but in addition to pre-shipment finance the exporter also receives storage facilities at the port of shipment at the expense of the buyer. The exporter usually presents a warehouse receipt in addition to the other documents.
Revolving L/C
Revolving L/C is normally used where shipments of the same goods are made to the same importer. It is a Single L/C that covers multiple-shipments over a long period. Instead of arranging a new L/C for each separate shipment, the buyer establishes a L/C that revolves either in value (a fixed amount is available which is replenished when exhausted) or in time (an amount is available in fixed installments over a period such as week, month, or year). L/Cs revolving in time are of two types: in the cumulative type, the sum unutilized in a period is carried over to be utilized in the next period; whereas in the non-cumulative type, it is not carried over.