Religions, Banks and Power

The following is offered as background to the forces at play in the arrest of Dominique Strauss-Kahn and his resultant resignation from the IMF which was the subject of my previous post. I don't have any definitive answer as to who is doing what and why but I can offer some thoughts on some of the players involved and their interests together with a bit of history.

It is a mistake to see the forces in the West as being tied to or representing a particular country. It is also a mistake to see a country (particularly in the West) as a political force in itself. It is a creature of the interests or groups that happen to be in control at any one time. These interests can change over time. There are four main groups; the Vatican, the aristocracy, the bankers and the industrialists.


Many members of these groups wear more than one hat and loyalty is a foreign notion. Self interest is paramount at all times. So we have many combinations of interests and shifting alliances and many ways of seeking advantage over one another.


Below are my opinions and judgements accumulated over many years. References are few but my views will either strike you as plausible or not. Plus, there's always Google, Dogpile and Ixquick amongst others to search the points and events I mention. Never-the -less, I hope these perspectives give rise to more thought and insight.

The Vatican is against the EU and it's common currency, the Euro; the love child of the various privately (read jewish/zionist) owned European central banks. The European country the Vatican has most political influence over is Poland, a catholic country. Poland's central bank is state owned (currently!); the only one in Europe. Poland was withdrawing from the Euro to protect its economy and there was talk of it withdrawing from the EU, too.

Then the plane carrying the political, religious and military leadership crashed in Russia. So we can say it wasn't caused by the Russians but by someone who wanted any thoughts of foul play to be directed at the Russians. Guess who?

The Vatican had high hopes of re-instituting a modern day Holy Roman Empire after the Second World War consisting of the eastern European countries. This, most likely, was the real basis of their co-operation with Nazi Germany and the main reason behind “The Concordat” signed by Cardinal Pacelli (later Pope Pius XII) and Germany's vice chancellor, Franz von Papen .

The Vatican has only ever offered vague reasons for it's signature. The Condordat gave the Vatican authority over the catholics of Germany and presumably this was understood to extend to territories annexed by Germany. The Catholic Church came into being in the fourth century as a state religion under the Roman Emperor Constantine. It outlived the Roman Empire and went on to form its own, the Holy Roman Empire, in Europe in the Middle Ages. This was it's original base for power and it has striven to repeat this arrangement ever since.

source - von Papen is on the left and Pacelli in the centre

When Germany was seen to be going down, they shifted their allegiance to America and presumably struck a similar deal with them and after the war facilitated the escape of many top Nazis and scientists to the US and elsewhere through their infamous “Rat Lines”.

But, the allies, meanwhile, struck another deal with Communist Russia (heavily influenced if not controlled by zionist jews) at the Yalta Conference and ceded control over eastern Europe to them. It would be interesting to know the extent of jewish banker influence in this deal; probably a lot!

The Vatican's hoped for control over Eastern Europe were dashed. But with the fall of the Soviet Union (with the help of the Vatican, chiefly in Poland), the Vatican once again had high hopes for a Catholic Eastern Europe (the second Holy Roman Empire) and to use this for it's seventeen centuries long world political ambitions. But along comes the European Union dominated, once again, by Jewish interests and absorbed them politically and economically with their European Central Bank (ECB) and their Euro currency.

The ECB now set its sights on the poorer western European countries and newer members who were enticed into the EU through large loans from the ECB. These loans turned out to be poisonous not only to the recipient countries but also to the taxpayers of the countries who in effect guarantee the loans of the ECB.

Poland was to be the Vatican's weapon in fighting back against these bankers and their European Union, their ECB and their Euro currency.

You will notice that the three countries that are in dire straits financially due to the actions of these bankers are Ireland, and Portugal which are both heavily catholic countries (like 90%+) and Greece which is similarly dominated by the Greek Orthodox church. Also, the religions of these countries and their leaders are never mentioned in the media.

There are multiple motivations behind the jewish bankers' takedown of these economies but one of the principal ones is to cripple the Vatican's power.

Given the history of the last century of jewish genocidal actions against the Christians in Soviet Russia, Armenia, Iraq and Palestine, I think it fairly safe to say that these zionist jews, at least, hate Christians and Christian churches and the Vatican, in particular.

That is not to say these bankers have not done deals with the Vatican in the past; they have. But as they always do, they turn on their allies when they are ready.

It seems to me that the current state of affairs reflects the growing awareness of this treacherous behaviour of these jewish bankers towards their allies that is causing their one time allies to regroup and fight back. Hence the thawed but obviously still prickly relations between the Vatican and the Crown of England, in the person of Queen Elizabeth, as one example.


Queen Elizabeth is the head of the Church of England, the head of the armed forces in Britain and also the effective head of the European aristocracy. As a little note of interest, the SAS Regiment report directly to her when push comes to shove and not through the military command structure. They are her Praetorian Guard.

DSK, though a Jew, was working towards these parties' interests which suggests that these groups have been successful in dominating the IMF and using it against the jewish bankers who are now threatening their power and ability to survive. DSK was rumoured to be in the running for the presidency of France and that he would have been successful. This would have returned a lot of control over France to the Vatican. A prospect that would have alarmed the jewish bankers.

It should be noted that the Catholic Church has a tradition of being favourably disposed towards a level of social harmony and stability, though not equality. They have not been enamoured traditionally with money, per se, but rather with the social hierarchy of feudalism and monarchy. When a new pope is installed, he is “coronated” with all its pomp and pageantry. (I will refrain from quoting the Gospels here!) The Vatican has always seen the pope as the ultimate monarch (God's Vicar or Viceroy) and through him granting God's legitimacy to the monarchs of Europe.

The aristocracy also have an interest in social stability for obvious reasons and so do the industrialists by and large. It is the jewish bankers that have the overriding interest in fomenting chaos because they are the ones who have historically wanted to take over from the established order and have spent the last two hundred years forging alliances and fomenting wars in an attempt to do so. They have been largely successful but still remain somewhat vulnerable. Theoretically, their banks can still be nationalised. Their insurance against this is their control of the media.

Of course, we, the ordinary citizens and subjects, want peace and stability but our interests don't count with any of these warring psychopaths and never have. We would do well without the lot of them. Very well, indeed.

So, back to the present day, from an article linked to by Penny that, though it is a google translation, I recommend reading in full (originally supplied by Gallier2, a commenter at Penny For Your Thoughts)-

"The arrest of Dominique Strauss-Kahn is primarily intended to discredit the IMF, and by extension to amplify the crisis of the euro. The consequences will be direct and important, especially for Greece. …..
…. "If Greece fails, then it's like a game of dominoes, all countries and that European banks will collapse, and the euro, before disappearing.
…...... the indictment of DSK is nothing else than an act of war the United States against Europe.”

So, many powerful people in Europe have a lot at stake. These powerful people, as mentioned before, include the Vatican, the European aristocracy, (some of whom are industrialists who also have a lot at stake) and even some bankers, no doubt. The Rothschilds can't be controlling all three organisations at the centre of this fracas, the European Central Bank, the Federal Reserve Bank of New York and the International Monetary Fund, otherwise we wouldn't be seeing this power struggle.

The most obvious organisation that they don't control would be the IMF. If they don't control it then the only ones who could are the European forces listed above. There may or may not be dissension amongst the bankers that make up the numbers at the ECB. I think it more than possible, though. It would seem from this article of Mike Whitney's that some of them at least were prepared to go along with the IMF's deal for Ireland (and thus save the Euro and European banks). These bankers are, after all, sitting on the branch that they are sawing off in many ways and they may not have their fortunes invested in China and the Chinese leadership as the Rothschilds appear to have.

In the previous article, I asked the question, “Have the Rothschild and the Rockefellers split?” This is looking less likely to me now. Though there are some very puzzling things to consider such as the battle for supremacy between the $US and the IMF's SDR's. You would think the Rothschild would be backing the IMF's SDR's given their cosying up to China. Maybe they are, but not just yet. Or maybe another international currency. Who knows?! Maybe there is so much scrambling going on due to the paranoia and panic of various factions that no one really knows what is going on.

Any war going on over our heads between these power centres, though, is not going to be good but it may well be better for us than the alternative of them acting in concert.

One good thing that will hopefully come from all this is that the authority these institutions and their leaders enjoy in the eyes of the general public is going down daily. Perhaps one day sooner than we think possible, enough people will have had enough of this nonsense from these psychopaths and start to look elsewhere, to themselves, ourselves, to provide not only the answers but the means to living well and peacefully.



Post. Shared.


appreciated, Switters. smiling

media humiliation of DSK

excellent info James. thanks for explaining. while i didn't pay too much attention to the details of the DSK arrest, it would seem then that the bankers ran that and naturally the media complied with the cover-up of the embarrassing incident that should have happened but didn't in this case. in other words this was one of those public messages meant to be understood by all the important parties: this is what will happen to you if you cross us.

it seems that media control is the bankers crutch. and that can be easily kicked out from under their smelly armpits if people would just turn off the damn teevee. no? is this not so simple or is it me?

this is what will happen to

this is what will happen to you if you cross us.

Yes, AP, aimed at DSK's backers i would say.

it seems that media control is the bankers crutch. and that can be easily kicked out from under their smelly armpits if people would just turn off the damn teevee. no? is this not so simple or is it me?

I agree on both these counts too (that makes three!)
Turning off the teevee would have a profound effect because the lies need constant reinforcement

There is a need for a replacement medium to spread the truth, though. But the internet is progressively furnishing that


I agree that Smolensk had to be a bank job. I don't even think the dignitaries were on the plane that crashed. I don't even want to think about how they were killed.

'Communist Russia (heavily influenced if not controlled by zionist jews)'

Communist Russia was Absolutely controlled by Zionist Jews:

McJ's picture

Thanks for explaining

Thanks for explaining all of this James. It helps! smiling

That first picture of the Queen and the Pope, with Phillip in behind, is really creepy. They all have them snake eyes. There is a weird similarity between the Pope and Phillip, eyes, nose, ears and especially the mouth.

These bankers are, after all, sitting on the branch that they are sawing off in many ways and they may not have their fortunes invested in China and the Chinese leadership as the Rothschilds appear to have.

Good point.

Though there are some very puzzling things to consider such as the battle for supremacy between the $US and the IMF's SDR's. You would think the Rothschild would be backing the IMF's SDR's given their cosying up to China. Maybe they are, but not just yet. Or maybe another international currency. Who knows?!

I am glad I'm not the only one puzzled by this because this is the part that is really confusing me. I don't understand why the zionist DSK was apparently working towards the aims of the European Aristocracy/Vatican. Did he deliberately cross the bankers (Rothschilds, Rockefellers?) and side with the former. Or, was he being set up all along to take the fall and bring the European Aristocracy/Vatican down with him.

Maybe there is so much scrambling going on due to the paranoia and panic of various factions that no one really knows what is going on.

I am thinking this may be a possibility. We are talking about psychopaths who are not capable of understanding the ramifications of their actions beyond their own immediate rapaciousness. They will do whatever has worked for them in the past not understanding they are creating their own demise - the parasite killing the host...

it seems that media control is the bankers crutch. and that can be easily kicked out from under their smelly armpits if people would just turn off the damn teevee. no? is this not so simple or is it me?

Good point AP!

Chossudovsky has weighed in on it...

though i'm too pooped to read it. i hope it's good hahaha.

Paul Craig Roberts, too

Paul Craig Roberts, too

"as a well-travelled person who has often stayed in New York hotels and in hotels in cities around the world, I have never experienced a maid entering unannounced into my room, much less when I was in the shower.

In the spun story, Strauss-Kahn is portrayed as so deprived of sex that he attempted to rape a hotel maid. Anyone who ever served on the staff of a powerful public figure knows that this is unlikely. On a senator’s staff on which I served, there were two aides whose job was to make certain that no woman, with the exception of his wife, was ever alone with the senator. This was done to protect the senator both from female power groupies, who lust after celebrities and powerful men, and from women sent by a rival on missions to compromise an opponent. A powerful man such as Strauss-Kahn would not have been starved for women, and as a multi-millionaire he could certainly afford to make his own discreet arrangements

It makes for interesting reading-

What 14 trillion dollars looks like

Here's a site with some visuals to give you an idea of what the US national debt of 14 trillion dollars looks like and gives you some sense of scale.

Now, all that debt is borrowed from bankers (who created it at no cost to themselves) and attracts interest. Image the size of the illegal payoff the bankers get every year. It would be at least the size of the one trillion stack. I think you'll agree it is worth fighting for (with other people's blood, of course) and spending what ever it takes to compromise every member of Congress to maintain this illegal situation. Almost every country around the world is in the same position though the amounts are smaller than for the US, of course.

One can understand the enormity of the threat that a country like Libya with its government owned central bank that actually serves the people poses to the bankers who own the central banks around the world.

One can readily understand how the Libyan government can pay for a large proportion of a new house for newly weds and pay for students to study anywhere in the world they wish. It is not only courtesy of Libya's oil but also its way of financing itself as a country. All countries in the world would be able to do something similar with sufficient political will.

We have poverty and starvation in the world because we have privately owned banks and central banks. These same bankers are the main cause of wars today, too, which the Libyans are only too aware of now.

McJ's picture

A picture is worth a trillion words

Thanks James - great visual! A picture is worth a trillion words. smiling
"When the smoke eventually clears from all the cruise missiles and cluster bombs, you will see the Allied reformers move in to reform Libya’s monetary system, pumping it full of worthless dollars, priming it for a series of chaotic inflationary cycles."

..."Libya also holds more bullion as a proportion of gross domestic product than any country except Lebanon, according to the London-based World Gold Council using January data from the International Monetary Fund. The value of gold is based on the March 25 close of $1,429.74 an ounce.
Will this gold remain in Libya once Allied forces have taken control of Tripoli, or will it [be] lost, or exchanged for pallets upon pallets of paper aka US dollars?"

..."It is becoming easy to diagnose the very root-causes of chaos in the Middle East and the ongoing war-attacks against Libya. Finance, oil, militarization & imperialism, globalization- all of these comprise a running agenda for the New World Order. Egypt and Tunisia have both fallen to interim military dictatorships and have been hooked with billions in cheap loans from the European Bank for Reconstruction and Development (EBRD) and the World Bank.
Any country or nation that is running against the grain of this agenda- going against the orthodoxies of the New World Order, will eventually be flagged and brought to heal by way of military hammer. Regular acts of war against these non-globalist nation states are designed to humiliate, degrade and compromise international human rights- a condition that has become embarrassing to the world at large."

Pirates and Gold

"Will this gold remain in Libya once Allied forces have taken control of Tripoli, or will it [be] lost, or exchanged for pallets upon pallets of paper aka US dollars?"

Assuming The Pirates of the Mediterranean are successful in their attempts to plunder Libya, I expect the gold will just disappear and we won't hear a word about it just as it apparently happened in Russia twenty years ago.

McJ's picture

Ellen Brown on Libyan central banking

The Libyan rebels have created their own Central Bank (Central Bank of Benghazi).
Hmmm - Those poor, Libyan rebels are certainly resourceful, starting their own central bank and all.
Methinks the heist is in full swing.

Libya all about oil, or central banking?
By Ellen Brown
"Several writers have noted the odd fact that the Libyan rebels took time out from their rebellion in March to create their own central bank - this before they even had a government. Robert Wenzel wrote in the Economic Policy Journal:
I have never before heard of a central bank being created in just a matter of weeks out of a popular uprising. This suggests we have a bit more than a rag tag bunch of rebels running around and that there are some pretty sophisticated influences.
Alex Newman wrote in the New American:
In a statement released last week, the rebels reported on the results of a meeting held on March 19. Among other things, the supposed rag-tag revolutionaries announced the "[d]esignation of the Central Bank of Benghazi as a monetary authority competent in monetary policies in Libya and appointment of a Governor to the Central Bank of Libya, with a temporary headquarters in Benghazi."
Newman quoted CNBC senior editor John Carney, who asked, "Is this the first time a revolutionary group has created a central bank while it is still in the midst of fighting the entrenched political power? It certainly seems to indicate how extraordinarily powerful central bankers have become in our era."

"It certainly seems to

"It certainly seems to indicate how extraordinarily powerful central bankers have become in our era."

Why, yes; if "our era" encompasses the last three hundred years, that is.

McJ's picture

Egypt to open Rafah border crossing.
Egypt Pulls the Plug on a Failed U.S.-Israeli Gaza Strategy
"It might have been easy, amid the raucous cheering at Prime Minister Benjamin Netanyahu's Capitol Hill pep rally on Tuesday, for Israelis to ignore President Obama's earlier warning of a gathering storm on Israel's horizon. But Wednesday's announcement that Egypt plans, on Saturday, to effectively end the siege of Gaza by permanently opening the Rafah border crossing brought home the harsh truth of Israel's increasingly isolated position."

re border opening

I sure hope that Egypt means what it says and is not just playing politics and using the Gazan's for leverage against the US and israel.

Not so 'open'

"People under 18 or older than 40 will require only a visa to pass, but those between 18 and 40 will still need security clearance, crossing officials say.

Commercial traffic will continue to have to pass through border points with Israel.

A Hamas official on a visit to Egypt referred to outstanding issues, such as the passage of people placed on a blacklist by a Palestinian Authority security apparatus loyal to Abbas"

"In an unexpected turn of events, the Egyptian Government has imposed a condition that humanitarian aid cargo brought by the MV Spirit of Rachel Corrie must be transported through Israeli territory.

The ship's mission leader Matthias Chang said Malaysian embassy officials in Cairo had informed them this was the condition set before the cargo could be discharged.

"We were told that the cargo has to be transported via Karem Shalom, at the Israeli border in Gaza with the permission of Israel," he said in a statement Thursday.

Chang said the team had not been consulted in the negotiations.

"For the past 10 days, we were repeatedly assured by Egyptian Government that the cargo of PVC pipes would be transported via the Rafah Crossing," he said.

He was referring to the Egyptian Foreign Ministry's statement on April 28 that the Rafah Crossing would be permanently opened to enable humanitarian aid into Gaza.

The MV Spirit of Rachel Corrie is currently anchored out in deep sea in Egyptian waters.

Its water supply is running very low and the ship is requesting 10 tonnes of water or the crew will be forced to use sea water again."

"The journey went relatively smooth until the ship, registered as MV Finch, encountered Israeli naval vessels on May 16, which fired warning shots at them, forcing them to turn away from the Rafah shore.

However, the ship remained anchored off the Port of El-Arish, Egypt, due to problems in getting clearance from the Egyptian authorities to berth there, even as supplies were running out.

Mohd Faizal said other challenges included a damage suffered by the ship, having to rely on sea water for daily use and using mineral water to clean themselves.

"We also have to deal with sea-sickness, apart from the disappointment for not being allowed to berth at the port," he said."

So it seems that the Egyptians have indeed been playing politics all along. Silly me!

McJ's picture

I was wondering...

"So it seems that the Egyptians have indeed been playing politics all along. Silly me!"

I was wondering about this when I read they had opened the crossing. It also seems to have been timed with the Obomber's statements at the recent G8 about supporting a peace deal between Israel and Palestine based on the 1967 borders. Canada's dear leader Heir Harper was 'the spoiler' on this one apparently, standing alone in dissent while enthusiastically throwing his weight behind more bombing of Libya. (Canada gets to be the leader on that loot and pillage, ya know! Hell, we just ordered 1300 more smart bomb at $100,000 a pop - What a bunch of fucking bullshit games these guys play.

"But while his stand on statements regarding Israel annoyed some G8 colleagues, and his decision not to offer aid disappointed others, Mr. Harper offered stalwart support on an issue that matters more to many of them: He said Canada will extend its three-month military mission in the NATO intervention in Libya."

McJ's picture

Belarus on the verge of default

Belarus on the verge of default: Belorussians find creative ways to survive
"Belarusian authorities have devaluated the Belarusian ruble by 55 percent. Some sources point to a panic in the capital city, with people frantically buying all kinds of goods."
"...My friends in Ukraine ask me how the Belarusians are feeling about Lukashenko's decision to trade Beltransgaz for a loan from Russia. I tell them there is no feeling, simply because the whole affair isn't public knowledge, save for a carefully edited news bulletin on Belarus' first government-run channel. We learned about the deal from Kudrin and Lazarev, with the hostess, sporting a pink blouse, happily announcing that Belarus would now receive a loan from Russia, that the end of the world had been postponed. The lady seemed to forget to inform that the privatization of Belarusian businesses, with Beltransgaz in the first place, cost three billion dollars.
"...Two weeks ago Belarusians besieged stores, buying all the sugar and buckwheat they could lay their hands on, at three to four times the normal price."
"...A salary now amounts to 1.5 million Belarusian rubles. Last month it was worth 500 dollars, today it is worth 300."


"Perhaps one day sooner than we think possible, enough people will have had enough of this nonsense from these psychopaths and start to look elsewhere, to themselves, ourselves, to provide not only the answers but the means to living well and peacefully."

well said james, well said.

I put up a post today about the Greek debt crisis and the banks.

I am still thinking we are looking at a banker vs banker type thing, and right now I am of the mind it is purely for profit taking.

Remember these guys let Lehman go down the drain.

Seems there were meetings, curious meetings and curiously timed meeting.

I get the distinct impression that some nations were attempting to stave of a default in Greece and some bankers are actively participating in bringing it on.

It looks as if Spain, Italy and Germany were working towards a non-default status for Greece, France balked and we should be looking at the Greeks "defaulting" in a short period of time.
I believe the American banks will be behind pushing this default.
After Greece, probably Spain.
The banks will swoop in and buy up everything at fire sale prices.
I relinked to Gallier's articles, because James it looks as if it was correct, this is economic warfare waged against europe.
The American banks are flush with $$ thanks to QE 1 and 2, wild speculation in the commodities market etc.
The QE's were always about economic warfare-
And so it goes

Penny, I think you are spot

Penny, I think you are spot on the money! smiling

To me it is increasingly looking like it is the Rothschilds and the Rockefellers (MorganChase & Citibank) against everyone else. At stake are the other banking houses in Europe. They will go down with Greece and this is why they were desperate for the IMF (led by DSK) to achieve a rescue deal for Greece and why R&R were desperate to stop it including arresting DSK.

The Anglo/American banks (R&R) have bet (through derivatives - again!) on the Greeks defaulting and leading to wholesale profiteering. The countries under attack are Catholic (and Orthodox). So the money power (R&R) will move in and supplant the Vatican's influence. Everyone will be more worried about getting enough to eat.

They will also get to take over the other banking houses of Europe. Win-win! THeir power will increase enormously compared to the other big banks in America, Bank of America and Wells Fargo who will, no doubt, become targets in turn

So this is why some of the European bankers have aligned themselves with the Vatican and the aristocracy. It's about survival amongst the sharks.

Fat Bess worried


Thanks for the well written article. Guess Diderot(?) was correct about the people will be free only
after the last sovereign is strangled with the entrails of the last priest.
The article below is from the website The Daily Bell - a good read to follow yours.

All the best to you and the rest


Diderot, indeed, Dave

Diderot, indeed, Dave smiling

"And his hands would plait the priest's entrails,
For want of a rope, to strangle kings."

it reminds me of Voltaire's memorable quote-

"Mankind can never be free until the last brick in the last church falls on the head of the last priest."

They are all just different brands of psychopaths. It is this knowledge that needs to be understood widely if we are to get through these times and be free, prosperous and at peace.

It's time for us chooks to learn to live without the foxes and their hen houses, methinks smiling

Thanks for the link, Dave. An interesting article, indeed. Things are moving faster and faster everyday. This is the end-run.

McJ's picture

accusation of child abuse against a former French minister

High-level pedophiles: Philosopher says former French minister 'caught in orgy with young boys'
Angelique Chrisafis
The Guardian
Wed, 01 Jun 2011 16:49 CDT

"Moroccan NGO says it will file legal complaint demanding investigation of claims made on television by Luc Ferry

An accusation of child abuse against a former French minister has sparked a major row in the wake of the charges against Dominique Strauss-Kahn for attempted rape.

Luc Ferry, a philosopher and former education minister, told a TV chat show that a former French minister had previously been caught at an orgy with young boys in Marrakech in Morocco. He said senior government sources, including a former prime minister, had told him about the incident, but would not name the ex-minister involved for fear of libel laws."

Aangirfan has some more on

Aangirfan has some more on it-

It could turn into an 'outing' competition! Let's hope so. smiling

McJ's picture

Goldman Sachs 'lost' (stole) 98% of Gaddafi's $1.3bn investment

Goldman Sachs 'lost' (stole) 98% of Gaddafi's $1.3bn investment

"A bitter rift has opened up between the world's most powerful bank and one of its most fearsome dictators after Goldman Sachs invested $1.3bn (£790m) of Colonel Gaddafi's money - and lost virtually all of it.
According to an investigation by the Wall Street Journal, Goldman offered to make Gaddafi one of its biggest investors as compensation for losing 98% of the money the Wall Street firm invested on behalf of the Libyan Investment Authority (LIA). This left the $53bn Gaddifi-controlled sovereign wealth fund, which elsewhere has stakes in companies such as Financial Times-owner Pearson and BP, with just $25.1m of the money it entrusted to Goldman.
The fund, which has soared in value in recent years on the back of Libya's growing oil wealth, was frozen by the EU and United Nations in February because of its close links with the Gaddafi family."

"...In one of the most extraordinary examples of the fallout from the financial crisis Mustafa Zarti, then LIA's deputy chairman, summoned Goldman's North African chief, Youssef Kabbaj and some colleagues, to a meeting in July 2008 to discuss the losses. It is understood that Zarti was so angry he behaved "like a raging bull"..."

"A bitter rift has opened up..." ???
What a strange way to characterize this especially considering the theft happened over 2 years ago and talks between the two parties had "petered out last summer". Note that Gadaffi is "one of the most fearsome dictators" while Goldman Sachs is a "most powerful bank". And what an unstable bunch the Libyans are, getting angry about this and acting like raging bulls.

"Over the next two years, discussions on these and a series of other compensation proposals were discussed by LIA and top-level Goldman staff - chairman Lloyd Blankfein, finance head David Viniar and European chief Michael Sherwood. However, they were unable to agree a solution and talks are thought to have eventually petered out last summer."

I'm guessing Goldman won't need to be worried about any more "extraordinary examples of the fallout" by raging LIA officials or about making further offers to compensate the Libyans for their loss.

"Maths Attack
The complexity of an esoteric Hong Kong financial instrument has come back to haunt Goldman Sachs after an simple typographical slip threatened to cost it HK$350m (£27m)."

Wow, a 350 million dollar typo! Can you believe it? Now that's a bitch! And we bloggers worry about our little keyboard slips.

I am not really sure what the point of this article is - maybe it's just too early in the morning for me sticking out tongue - but everything about it's tone and content strike me as weird and disjointed. Arrgh...

dealing with fraudsters

The Guardian article is basically a puff piece painting Goldman Sachs as reasonable people who have bent over backwards making many offers to compensate the Libya (by 'investing' yet more money with them) for their losses due to speculation.

Taking out options on energy utilities and banks is usually a pretty safe proposition because their prices are relatively stable and tend to increase gradually but steadily over time. Except, that is, when the whole market crashes and everything goes down.

And the reason the markets crash has everything to do with Goldman Sachs and Friends (hedgefunds, the Fed & the NYSE). They engineer it through massive short selling (which is fraud - see Crashing the Market" for details) and profit wildly from it. So whoever was on the opposite side of that option deal that Libya entered into would have profited enormously. Any guesses as to who the other party might have been?

Mustafa Zarti, then LIA's deputy chairman, behaving "like a raging bull" is understandable if you consider the Goldman Sachs guys were most probably casually sitting there saying "shit happens" when Zarti probably knew that they were the ones causing the "shit" to "happen". So he knew the LIA had been conned and the con artists were proposing yet another deal as "compensation". I think they call this "chutzpah"

It may be a little counter-intuitive but the stock markets do not manufacture wealth. They are merely a mechanism for transferring money from one person's pocket into another person's pocket and when you own the game it is all too easy.

The "Maths attack" bit is there to say the Goldmans get hit with bad luck, too! You know, "shit happens". It's random.

The bit that bothers me is why on earth was Libya dealing with Goldman Sachs in the first place? When dealing with fraudsters, especially ones known for their chutzpah, you are going to get burnt every time. It's not as if the Libyans don't know anything about banking and jewish bankers! They, more than anyone, know all about it.

Why is this article appearing now? Well i guess the rest of the Libyan Investment Authority's frozen $53b is going to disappear into those same pockets any day now and any protests from the Libyans will be seen as unreasonable. They're unreasonable "raging bulls", after all.

McJ's picture

Thanks James for the great

Thanks James for the great reply. The article really ticked me off. I think it was the whole thing about it being 'extraordinary" that Zarti was furious Libya have been ripped off for over a billion dollars. I imagine the "shit happens chutzpah" scenario you laid out is pretty close to the truth. I guess the reporters that write these things just assume everyone reading is a brain dead idiot. smiling I wish I could get paid the big bucks for writing drivel like that. laughing out loud
It is interesting that Libya was dealing with Goldman Sachs considering they are one of the few countries that print their own money. Seems to me they would have been better off investing in Islamic banks however maybe it can be chalked up to plain old fashioned greed. Or perhaps Gaddafi and his sons(/inner circle) believed they had become one of the elite gang and were now playing with the big boys, which wouldn't be surprising considering all the attention their big bucks were affording them. One can never underestimate the roll of vanity (and the opportunity to exploit it) amongst the psychos at the top.

Deals R Us

I guess the reporters that write these things just assume everyone reading is a brain dead idiot. I wish I could get paid the big bucks for writing drivel like that.

it's pathetic, isn't it, McJ. Over the years, there has only been one economics/financial writer here in Oz that i've had any time for.

One can never underestimate the roll of vanity (and the opportunity to exploit it) amongst the psychos at the top.

Yes, i guess that's it. What is plain to the likes of you and I, is simply missed by those into power. It blinds as it corrupts. They must buy into their own bullshit, that money itself is wealth. No surprises there, i suppose. If you are going to live a life of lies, you have to believe them even though you know they're lies. Therein lies the insanity.

If you are going to deal with thieves, you are going to get burnt. At best, it is like playing Russian Roulette and all of these pricks think they will blessed. More insanity.

It's the same as, 'why would you sign a contract or shake hands on a deal with a known liar?' only someone detached from reality would do that. But they do it all the time and these are the sorts that are running our societies and all its institutions.

So why would the Libyan Investment Authority deal with Goldman Sachs? 'coz they're nucking futs

McJ's picture

I actually think about that a lot.

"What is plain to the likes of you and I, is simply missed by those into power."

I actually think about that a lot. Psychopaths may not appear to be insane in the way most of us think that should look but they are 'not sane'. They are incapable of feeling self doubt or of questioning their beliefs. In their own minds they are never wrong. They really can't help themselves; they're fuckin nuts. smiling So perhaps not so hard to understand how they could believe their own lies and do business with known liars.

Chuckyman has a good post up. It gave me some smiles.

McJ's picture

Max Keiser on Gaddafi's stolen billions

Gaddafi's Stolen Billions: Max Keiser Explains 'Financial Terrorism'

"What I am hearing is that Frederic Oudea of Société Générale, Lloyd Blankfein the CEO of Goldman Sachs and Tony Blair have all been marked for death by Libyan assassins - as a campaign to rectify what Libya perceives as a blatant disregard for their sovereign wealth fund. This all goes back to 2004 when Tony Blair was in Libya doing deals with Gaddaffi. Even at that time, my understanding is that he was setting banks up in the west to swoop in and start to pick apart the sovereign wealth fund. And, of course, when Tony Blair left Number Ten Downing Street, he took a position with J.P. Morgan. He went right to J.P. Morgan and he started setting Libya up for these deals immediately and just was throwing blood to the sharks."

"The banks are financial terrorists and the way that they conduct their operations, whether it is subprime lending markets that they fraudulently induced...everything they touch they turn to some kind of act of larceny or accounting fraud and this is how they pay themselves 140 billion dollars in bonuses at the end of the year in an economy that is collapsing..."

"They make money out of creating and running ghettos. They make money out of financial terrorism. When these markets crash they make billions."

"...people in American don't want to raise the debt ceiling. So, what Wall Street is telling Washington and the American people either you raise the debt ceiling or we're going to crash the stock market because they use weapons of mass financial destruction."

"Lord Blankfein, CEO of Goldman Sachs and John Paulson, Hedge Fund manager were in Greece two years before the recent austerity measures plotting the take down of Greece and the carve up of those assets.

Again, who in the world has the balls to take these bankers down to the chopping block and frickin get rid of them."
Max Keiser

Who indeed?

This would be the next logical step in the internecine war amongst the elites. Right now there are still some countries to squeeze and still some sovereign funds to plunder. But what happens after that. Or before. Strength and position is everything in a war.
I must say it couldn't happen to a nicer bunch of bastards. Unfortunately, with violence, there are always innocent victims especially when these bastards indulge in violence.

I like Henry Ford's answer. He said something like, "If you want to put an end to wars, lock up the fifty wealthiest bankers"

MCJ James

Great article James

MCJ Brilliant video. Wow Max is great.

Blue Thank You


thank you very much, Sally. smiling I hope you are travelling well.

Yes, Max doesn't mince words. He is calling out these banks for the predators that they are which is entirely a good thing. The people he names, though, are products of the banks not the other way round. And the banks are a product of the system now that the system has been put in place. It's this system that ultimately needs the chop.

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