Nexus - 0218 - New Times Magazine-pages

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Bank failures, ‘shotgun’ mergers and consolidation of assets began _risk, the banks of the United States vote the stock that they hold in under the watchful eye of the Federal Reserve. trust for others. The traditional ‘rule of thumb’ says that if an indi- In assuming its place as the new banking ‘dictator’, the Federal vidual votes as much as 10% of a company's stock at a stockhold- Reserve issued numerous regulations. - The “Topside” Transition ers’ meeting, he is usually considered to have control, or near con- Year of 1920 put an end to good times when commodity prices tol, of that company. The trust departments of America vote four peaked and plunged, causing the bankruptcy of tens of thousands _ times this amount. A full 30% of all the stock in the country is of businesses, This hurt banks that held the worthless loans. As voted from the trust departments of the banks of New York. planned, it caused them to violate rules and regulations of the It is true that some trusts reserve voting rights to themselves, but Federal Reserve. Banks failed by the thousands. most leave this to the banks. The fact is, the New York banks These massive failures had the happy effect of reducing the total control American industry by voting the stock held in their trust. number of banks and increasing the assets of the survivors. There In this way the banks control American industry and how are few surviving banks that did not profit tremendously by the | America's industry spends its money. This allows them to control closing down of their competition. There are few hamlets in the rest of America. This is why industry-endowed colleges Virginia which do not contain an old employ only liberal teachers, why only certain charities get boarded-up bank—a trophy of the "1920s money, why there is no diffcrence Turkey Shoot". between the political partics, and why 1933 There were only 14,771 banks every word written by newspaper chains tf; 16306 had bitten the dustin! 16,305 [banks] had bitten ti flied, tho reanotions ware Nighonned cet 6 OP oth Tutey, with he omer of coors: This could have been done earlier if there Half of America was in debt tions in the hands of lending institutions, we eet all ahe Soepeution wes gous —and servant to the 14,000. °Sants ae in the business of lending and their assets now belonged to the sur- orso surviving banks. money. American banks control vivors. The borrower is still servant to American corporations. American corpo- the lender. Half of America was in debt rations must borrow money when their —and servant to the 14,000 or so surviv- masters tell them to. Human nature is ing banks. This was much better for the ee tn sel-serving. An investigation could surviving banks who were bigger and quickly show if the corporations borrow more powerful than anything seen before. from the same banks that control them. 7 : This is important. If corporations are forced into bankruptcy 1980s Turkey Shoot because of the huge amounts of money controlling banks require In Rome, the dictator gobbled up the bankers and became a them to borrow, a jury may find those banks responsible. The superbanker himself—for a time. In the "1920s Turkey Shoot", responsible banks could then be found liable for losses incurred. half the banks gobbled up the other half. I predict that there will America's corporations have been treated like cows. Once the be a "1980s Turkey Shoot" where the banks will again gobble up —_halter has been placed about their necks by bank trust depart- each other leaving a few 'superbanks'. Commodities are presently —_ ments, they have been fattened to giant size by massive feedings plummeting like the 1920s. Businesses are bankrupting in num- of debt. Then the interest is milked from them. As a result, a bers like the 1920s. It seems logical to assume that certain banks _Jarge part of America's industry is oversized, overstaffed and over- owning [OUs from bankrupting businesses will in tum come mortgaged. This does not benefit the corporations or the stock- under pressure. This will cause them to become prey to their _ holders if it results in the corporation's bankruptcy. It docs benefit stronger bank competitors. the banks that Ient the money. In the "1920s Turkey Shoot", 55% of the banks hit the dust. If Corporations build incredibly expensive skyscraper offices in 55% of existing banks bite the dust again, it will leave approxi- — New York costing hundreds of millions of dollars. It is assumed mately 6,300 banks. This precedent can again be found in Rome _ by many that these business blunders were made so that the con- where the dictator came back the second time and took over the trolling bank could profit from the loans. assets of 2,000 more banker/knights. The next Penn-Central type bankruptcy may force the answer to Perhaps the Cycle Theory will come into play. It took 73 years _this question in court. from a low of 715 banks in 1847 to the all-time high of 31,076 in The few independent family-owned newspapers, TV and radio 1920. If the 73-year retracement principle holds true, there may stations stay indo iy siraaiiing pt ds do the be only 715 superbanks left 73 years from 1920—or in 1993. advertising. The corporations that do the advertising are con- Each will represent an average of 43 or more other banks whose rolled by bank trust departments. The media please the banks or assets it will have taken over. Its slice of the interest pie will be they don't get advertising. If they don't get advertising, they go bigger than anything we can imagine since there will be fewer ont of business. It's that simple. banks to share. This has led to the rapid growth of ‘alternate media’ newsletters, small newspapers, books (such as this one) and periodicals. Bank Trust Departments . ae People are attempting to gain news not present in today's media, In the 1920s most of the information in this book was common _ since most of today's media carries corporate advertising and has knowledge among informed people. Since that time, an iron cur- heen ‘bought’ while trying to keep that advertising. oa of oe descended on the West. The way this censor- In a political contest, corporate donations and media coverage shup is mamaged 1s most imterésting, —_— . tend to go to the candidate who pleases the New York banks. It is Almost 45% of the total stock of corporations in the United virtually impossible to reach the top rungs of the political ladder States is held in trust at bank trust departments. The banks don't without going by this rule. Frankly, the banking industry would own these stocks. They don't keep the income from these stocks. —_ be foolish to support their encmics. For this reason it must be But the banks vote these stocks. assumed that any candidate endorsed by the media is also pleasing Without having to have a single dollar of their own money at _ the New York money interests. "1980s Turkey Shoot" In Rome, the dictator gobbled up the bankers and became a superbanker himself—for a time. In the "1920s Turkey Shoot", half the banks gobbled up the other half. I predict that there will be a "1980s Turkey Shoot" where the banks will again gobble up each other leaving a few 'superbanks'. Commodities are presently plummeting like the 1920s. Businesses are bankrupting in num- bers like the 1920s. It seems logical to assume that certain banks owning IOUs from bankrupting businesses will in tum come under pressure. This will cause them to become prey to their stronger bank competitors. In the "1920s Turkey Shoot", 55% of the banks hit the dust. If 55% of existing banks bite the dust again, it will leave approxi- mately 6,300 banks. This precedent can again be found in Rome where the dictator came back the second time and took over the assets of 2,000 more banker/knights. Perhaps the Cycle Theory will come into play. It took 73 years from a low of 715 banks in 1847 to the all-time high of 31,076 in 1920. If the 73-year retracement principle holds true, there may be only 715 superbanks left 73 years from 1920—or in 1993. Each will represent an average of 43 or more other banks whose assets it will have taken over. Its slice of the interest pie will be bigger than anything we can imagine since there will be fewer banks to share. Bank Trust Departments In the 1920s most of the information in this book was common knowledge among informed people. Since that time, an iron cur- tain of silence has descended on the West. The way this censor- ship is managed is most interesting. Almost 45% of the total stock of corporations in the United States is held in trust at bank trust departments. The banks don't own these stocks. They don't keep the income from these stocks. But the banks vote these stocks. Without having to have a single dollar of their own money at 32°NEXUS FEBRUARY - MARCH 1994