George Peabody was the founder of Peabody, Morgan & Co. which is the grandfather of JP Morgan & Chase, the largest US Bank with $2.509 trillion in assets, and Morgan Stanley ($347 Billion in assets) which was just got slapped on the hand with a $1.8bn combined fine for causing the 2008 bailout. Morgan Stanley taking $1.25 billion in fines.
“Morgan Stanley said yesterday it reached a $1.25bn deal to end Federal Housing Finance Agency claims the bank sold faulty mortgage bonds to Fannie Mae and Freddie Mac before the firms’ losses pushed them into U.S. conservatorship. JPMorgan will pay $614m after admitting it submitted ineligible loans for Federal Housing Administration and Veterans Affairs insurance. ”
Now the history of these banks have a long history of causing panics and profiting from them. During the run on the banks of 1857, George Peabody had to ask the Bank of England for a loan of £800,000. This gave them enough money to buy securities below market value to sell later at inflated prices in a market in which they were the only ones who had cash in hand. Could the panic have been planned and who helped them within the Bank of England? Can it happen again? Lets look back to 2008.
In 2008 two of the banks that can trace their roots to George Peabody received funds from the 2008 bailout. J.P. Morgan & Chase received $25,000,000,000. Morgan Stanley received $10,000,000,000 . The funny thing is that J.P. Morgan influenced Nelson Aldrich in his plan that morphed into the Federal Reserve Act which was instrumental in creating the Federal Reserve which was to protect the country from future panics and bailouts after the 1907 Panic.
The history of George Peabody and his bank is thus. In 1835 George Peabody and Company is formed. IN 1854 Junius Spencer Morgan is partnered to form Peabody, Morgan, & Company. Peabody, Morgan & Co. then took the name J.S. Morgan & Co. . After J.S. Morgan died from a carriage accident on the Riviera his son took over the company and called it J.P. Morgan & Company . The former UK merchant bank Morgan Grenfell ,now part of Deutsche Bank, joins J.P. Morgan in the London Round Table Group in 1891 which influences the creation of the Council on Foreign Relations in 1918. The corporation, formed by J.P. Morgan & Co. partners Henry S. Morgan (grandson of J.P. Morgan), Harold Stanley and others, came into existence on September 16, 1935, in response to the Glass-Steagall Act that required the splitting of commercial and investment banking businesses With today’s Peabody’s bank and his role in orchestrating many panics and depressions in the world’s economics.
Now there was another Panic in 1837, the year J.P. Morgan was born. Panic of 1837 was engineered because the charter of the Second Bank of the United States had run out in 1836. President Jackson promptly withdraw government funds from the Second Bank of the United States, but he deposited these funds, $10 million, in state banks. An immediate expansion of the national economy resulted, the national debt was paid off, and the country had a surplus of $50 million in the Treasury.
The Rothchilds had an answer to this. See Baron James de Rothschild (Jacob Mayer Rothschild) of Paris was the principal investor in the Second Bank of the United States. Jackson called the bank a den of vipers and had it closed. Even though in 1835 The French house of Rothchild had become the financial agent for the U.S. Department of State, this did not offset their loss a couple months later when the Second Bank was closed. Then in response the Panic of 1837 was aggravated by the Bank of England when it in one day threw out all the paper connected with the United States which was controlled by Baron Nathan Mayer Rothschild.
The Rothschild family began with Mayer Amschel Rothschild who was the court Jew to the Langraves of Hesse in Frankfurt. To escape the downfall of many court Jews prior to him in Europe, he sent his five sons to start banking firms in five different nations.
- Amschel Mayer Rothschild (1773–1855): Frankfurt, died childless, passed to sons of Salomon and Calmann
- Salomon Mayer Rothschild (1774–1855): Vienna
- Nathan Mayer Rothschild (1777–1836): London
- Calmann Mayer Rothschild (1788–1855): Naples
- Jakob Mayer Rothschild (1792–1868): Paris
This prevented their banking houses from being subject to local politics or one prince or king refusing to pay a Jew. Monarchs had been declining to pay their debts to Jews since Roman days. Establishing five Houses in Five different countries protected the Rothschilds from this. It also led them to more independence from any particular countries rise or fall.
The Bank of England’s act in 1837 meant they refused to accept or discount any securities, bonds or other financial paper based in the United States? Why, the Bank of England wanted to create an immediate financial panic in the United States, cause a complete contraction of credit, halt further issues of stocks and bonds, and ruin those seeking to turn United States securities into cash.
Even though Nathan Mayer Rothschild almost single-handedly funded England in the Napoleonic Wars and their allies (mostly likely bailing out his younger brother Jacob the first time), he could not appear in polite London society and its circles. He needed an inside voice.
When George Peabody moved to London to establish a firm there in 1835, after his successful dry goods, cotton, and slavery business in Baltimore with Elisha Riggs, he became Rothschild’s answer. Nathan was much hated in London and the aristocracy denied all of his invitations to his home. So he set up Peabody with the capital to entertain and cajole them to his thinking. The parties were so celebrated, Peabody even got the British to celebrate July 4th. Peabody had been traveling to England since 1824 to sell his cotton in Liverpool at the advice of another Baltimore banker Alex Brown who started a firm in 1810.
Alex Brown and Son & Co. is today’s firm of Brown Brothers Harriman New York and Brown, Shipley and Company London. Sir Montagu Norman, Governor of the Bank of England for many years, was a partner of Brown, Shipley and Company. Now the Brown brothers partner was Sir Montagu Norman, the Mayor of the Bank of England. He was organizer of “informal talks” between heads of central banks in 1927, which could of led to the Great Stock Market Crash of 1929.
Now back to the Panic of 1857 and the bailout of Peabody, Morgan & Co. With the loan from the Bank of England they were the only bank who had cash on hand to purchase depreciated securities thrown on the market by distressed investors in America to later sell them at their true worth later. The Bank of New York founded by Hamilton also did this by buying soldier’s back pay for pennies on the dollar.
Hamilton also created the First Bank of America on this same principle. The Bank of New York would also receive a bailout in 2008.
Now Rothschild had financed the new wealth in America through the Morgans. Their firm would also become part of the Council of Foreign Relations. Currently Carla A. Hills is their Co-Chairman. She is on the international board of J.P. Morgan Chase, and a member of the Secretary of State’s Foreign Policy Advisory Board. Also under Woodrow Wilson’s administration Republican Nelson Aldrich would write the Aldrich Plan which Wilson altered to create the Federal Reserve or the Third Central Bank of the Untied States. Aldrich’s son in law was John D. Rockefeller Jr. and his friend was J.P. Morgan. His plan was slightly altered and became the Federal Reserve Act. Plus he modeled his plan after the German centralized bank controlled by the Rothschilds.
So what is the plan?
- Cause a panic
- Have people sell goods and commodities below their value
- Influx some cash to the right players to buy those goods and commodities
- Then sell them at regular or inflated prices
- wait a few years
- People forget
So you can say the underworld of international economics started in the tunnels of Salem with their own native George Peabody and his friendship to the powerful British banker Nathan Mayer Rothschild which still persist today. How long will it last till the world digs up the truth. To find out more read Salem Secret Underground and visit the Salem Tunnel Tour today and book your tickets!