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From: "UNIVERSAL ISSUES" <[EMAIL PROTECTED]>
To: <[EMAIL PROTECTED]>
Subject: The Rothschild Formula
Date: Friday, February 15, 2002 11:20 AM


  The Rothschild Formula(1)
  by G. Edward Griffin

  Let us imagine a man who is totally pragmatic. He is smarter and more cunning than 
most men and, in fact, holds them in thinly disguised contempt. He may respect the 
talents of a few, but has little concern over the condition of mankind. He has 
observed that kings and politicians are always fighting over something or other and 
has concluded that wars are inevitable. He also has learned that wars can be 
profitable, not only by lending or creating the money to finance them, but from 
government favoritism in the granting of commercial subsidies or monopolies. He is not 
capable of such a primitive feeling as patriotism, so he is free to participate in the 
funding of any side in any conflict, limited only by the factors of self interest. If 
such a man were to survey the world around him, it is not difficult to imagine that he 
would come to the following conclusions which would become the prime directives of his 
career:


    1.. War is the ultimate discipline to any government. If it can successfully meet 
the challenge of war, it will survive. If it cannot, it will perish. All else is 
secondary. The sanctity of its laws, the prosperity of its citizens, and the solvency 
of it treasury will be quickly sacrificed by any government in its primal act of 
self-survival.

    2.. All that is necessary, therefore, to ensure that a government will maintain or 
expand its debt is to involve it in war or the threat of war. The greater the threat 
and the more destructive the war, the greater the need for debt.

    3.. To involve a country in war or the threat of war, it will be necessary for it 
to have enemies with credible military might. If such enemies already exist, all the 
better. If they exist but lack military strength, it will be necessary to provide them 
the money to build their war machine. If an enemy does not exist at all, then it will 
be necessary to create one by financing the rise of a hostile regime.

    4.. The ultimate obstacle is a government which declines to finance its wars 
through debt. Although this seldom happens, when it does, it will be necessary to 
encourage internal political opposition, insurrection, or revolution to replace that 
government with one that is more compliant to our will. The assassination of heads of 
state could play an important role in this process.

    5.. No nation can be allowed to remain militarily stronger than its adversaries, 
for that could lead to peace and a reduction of debt. To accomplish this balance of 
power, it may be necessary to finance both sides of the conflict. Unless one of the 
combatants is hostile to our interests and, therefore, must be destroyed, neither side 
should be allowed a decisive victory or defeat. While we must always proclaim the 
virtues of peace, the unspoken objective is perpetual war.

  Whether anyone actually put this strategy into words or passed it along from 
generation to generation is not important. In fact, it is doubtful it has ever worked 
that way. Whether it is the product of conscious planning or merely the consequence of 
men responding to the profit opportunities inherent in fiat money(2), the world's 
financial lords have acted as though they were following such a plan, and this has 
become especially apparent since the creation of the central-bank Mandrake 
Mechanism(3) three centuries ago.
  The "balance-of-power" question is particularly intriguing. Most history texts 
present the concept as though it were some kind of natural, social phenomenon which, 
somehow, has worked to the benefit of mankind. The implication is that it's just 
wonderful how, after all those European wars, no nation was strong enough to 
completely dominate the others. When the United States emerged from World War II with 
exactly such power, it was widely deplored, and massive political/financial mechanisms 
such as foreign aid and disarmament were set in motion to restore the balance. This 
has become almost a revered doctrine of international democracy. But the overlooked 
consequence of this sentimental notion is that wars "between equals" have become the 
permanent landscape of history.


  -----------------------------------
  (1) The Rothschild Formula was first reduced to writing by G. Edward Griffin in 
1994. The above is a small excerpt from one of his 26 chapters, "The Rothschild 
Formula," found in his book entitled, THE CREATURE FROM JEKYLL ISLAND, a copy of which 
is available via http://www.realityzone.com/creature.html

  (2) Fiat money means money that has been created out of nothing (by "monetizing 
debt" into Federal Reserve Notes which are then used as "money"). Central banks, like 
the Federal Reserve System and the Bank of England, create fiat money which then 
floods into the economy causing (the hidden tax known as) "inflation" (i.e., reduced 
purchasing power).

  (3) Mandrake Mechanism is the exact method central banks use to "monetize debt" and 
thus create "fiat money," such described in detail in the book, "The Creature From 
Jekyll Island" by G. Edward Griffin.





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