The Rothschild Conspiracy

Some believe that world governments and economies are secretly controlled by the Rothschild banking family.

Filed under Conspiracies

Skeptoid #311
May 22, 2012
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Mayer Amschel Rothschild
Mayer Amschel Rothschild
(Public domain image)

Today we're going to point our skeptical eye at the famous Rothschild banking family, and the multitudinous conspiracy theories surrounding them. Just about every conspiracy theory website that presumes the world's governments act in willing concert under the guidance of some secret council points the finger at the Rothschilds. We're going to take a modern-day look at this mysterious family, see who they really are and what they really do, and see exactly what evidence there is that shows that they are actually directing world affairs. Why would superpowers such as the United States, Russia, and China willing give up their sovereignty, conducting wars and exerting control over markets according to instructions from above? The answer, according to the believers, is money.

Driven by their quest for money, the Rothschilds have been said to assassinate US Presidents, and to create virtually every war since the 1800s in order to finance both sides. Some say the Rothschilds (who are Jewish) caused the Holocaust, while others say they were the true power behind the creation of Israel. They would, and continue, to do anything for money. In fact one of the earliest and most influential Rothschilds, Nathan, is claimed to have said:

I care not what puppet is placed upon the throne of England to rule the Empire on which the sun never sets. The man who controls Britain's money supply controls the British Empire, and I control the British money supply.

The Rothschilds' whole story is one of money, and it began in the 18th century. Their history is perhaps largely responsible for the modern belief that Jews control the world's money supply, which is not entirely unrooted in fact. Throughout Christian Europe, it was common for institutionalized anti-Semitism to prohibit Jews from owning property; so Jewish businesspeople had no choice but to work in the fields of commerce and finance, where money could be kept liquid and easily transferred or hidden. By denying Jews the stability of property ownership, Christians unwittingly forced Jews of the day into great financial expertise.

The greatest of these financial adepts was Mayer Amschel Rothschild, born in 1744 in a Jewish slum of Frankfurt. Not much is known about his early life, as his was one of tens of thousands of marginalized, outcast families. But once he came of age he became an apprentice at a small bank in Hamburg, where he learned the trade. Returning to Frankfurt at the age of 19, he offered his own banking services in a modest way, beginning with trading of rare coins and related investments. He was energetic, clever, and most of all he was charismatic. And he was smart, seeking out wealthy clientele, and associating with nobility whenever he could. By the age of 40, he had consolidated his most important business contact: the Landgrave William, the Elector of Hesse, one of only a tiny number of nobles empowered to elect the Holy Roman Emperor. When William was younger, he had engaged in the trading of rare coins with Mayer's father, and so the two had always known one another. When William inherited his own father's massive fortune, his friendship with Mayer Rothschild gave Mayer the ability to begin conducting larger international transactions.

This was the point at which the Rothschild name became first involved with the manipulation of money behind the scenes of wars. Mayer was a firm believer in family business, and insisted on using his own sons — by then he had five — as his business partners. What he did next became the model for many powerful Jewish financiers who followed: He installed each of his five sons as his agents in the five major financial centers of Europe: the eldest Amschel Mayer Rothschild in Frankfurt, Salomon Mayer Rothschild in Vienna, Nathan Mayer Rothschild in London, Calmann Mayer Rothschild in Naples, and the youngest Jakob Mayer Rothschild in Paris.

One of Mayer's earliest transactions was the start of the pseudohistory and hyperbole surrounding everything Rothschild. Napoleon was on the march through Europe, and the popular version of the story claims that William gave the entirety of his fortune to Mayer to protect it from being seized by Napoleon. Mayer was able to hide the money by sending it to his son Nathan in London. The London Rothschild office had to spend it somewhere, and loaned it to the British crown, in order to finance the British armies fighting Napoleon in Spain and Portugal in the Peninsular War. In fact, all William gave to Mayer were some important papers. Nathan had already long managed the bulk of William's money, and much of it was already invested with the British Crown. William was no stranger to such transactions; his father had gained much of that wealth in the first place through the financing of Britain's war on the American colonies, a few decades earlier.

Nevertheless, the Rothschilds' savvy investments of William's money paid off handsomely, netting sufficient interest that their own wealth eventually exceeded that of their original nest-egg client. This marked the birth of the Rothschild banking dynasty.

Four of Mayer's five sons had sons of their own, most of whom were sent to other financial centers to head new offices. By Mayer's edict, family members intermarried with first and second cousins, keeping the company sealed tight against outsiders. At their height, the Rothschilds' wealth, if it had been pooled, would have been the largest single fortune in world history. Europe was littered with dozens of staggering mansions owned by family members. Throughout the 19th century, N M Rothschild and Sons in London filled the role now held by the International Monetary Fund, stabilizing the currencies of major world governments. They profited heavily, but they also provided a crucial international service.

World Wars I and II, the costs of which exceeded the abilities of either the Rothschilds or any other banks to finance, and resulted in the creation of the International Monetary Fund, marked the end of this part of the Rothschilds' business. In addition, Nazi Germany devastated the Austrian Rothschilds and seized all of their assets. The family members escaped to the United States, but lost their entire fortunes to the Nazis, including a number of palaces and a huge amount of artwork. The banks' sizable assets became the property of Nazi Germany, and this is the only seed of truth to the claim that the Rothschilds "funded the Holocaust".

By the time of the state of Israel's creation in the late 1940s, there were hundreds of Rothschild descendants, many still in banking or asset management, many in philanthropy, and many in unrelated businesses. Some Rothschilds supported Israel; some were passionately opposed. The idea of a single unified Rothschild establishment was long gone. No doubt many financial institutions were involved in Israel's early days, some were Rothschild banks, many more were not. It is this twisting and spinning of ordinary events into dark powerful deeds that characterizes much of the Rothschild conspiracy claims.

Case in point: At the 1815 Battle of Waterloo, Rothschild couriers were able to deliver news of the British victory to Nathan a full day ahead of government messengers. Nathan bought bonds at a low price that was fluctuating with uncertainty, and did very well the next day when official news came and prices rose. The conspiracy theory version states that Nathan first dumped bonds on the market to fool other investors into thinking he had news that the battle was lost, and through this ruse, multiplied the family fortune. In fact there is no historical record of this prior to a 1940 German movie called Die Rothschilds Aktien auf Waterloo, described as "the Third Reich's first anti-Semitic manifesto on film." The truth is that the Rothschild bank was already heavily invested betting on a protracted war, and this short-term gain on bonds merely offset a long-term loss.

One of their most famous transactions came in 1825, when England's unregulated banks all went into crisis due to poor management of interest rates. Nathan Rothschild had earlier bought huge amounts of gold from the struggling Bank of England at a fire sale price and sold it to the French national bank. When the Bank of England suffered a liquidity crisis as depositors clamored for their funds, the bank was able to borrow that same money back from Nathan, and thus averted disaster. Virtually every conspiracy website claims that this is how the Rothschilds "took over the Bank of England". No. They gave them a loan, which was paid back. In later years one Rothschild descendant sat on the Bank of England's board for a time, but by no logic can it be defended that their 1825 transaction constituted "taking them over".

In fact, that famous quote from Nathan Rothschild about "controlling the British money supply" turns out to be a fabrication. I found no original source for the quote at all, though it's repeated in dozens of conspiracy books and on tens of thousands of conspiracy websites. I did a thorough search of all available newspaper archives from Nathan's lifetime, and had some friends check various university library systems. No such quote appears in the academic literature. After such a thorough search, I feel confident stating that he never made such a statement.

But the quote doesn't appear to be completely made up by the conspiracy theorists. It's most likely a revised and restyled version of this quote attributed to Nathan's father, the original Mayer Rothschild:

Give me control of a Nation's money supply, and I care not who makes its laws.

But like the longer, more specific quote from Nathan, even this one turns out to be apocryphal. Author G. Edward Griffin did manage to track it down, though. He found that this saying was:

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. This quotation could not be verified in a primary reference work. However, when one considers the life and accomplishments of the elder Rothschild, there can be little doubt that this sentiment was, in fact, his outlook and guiding principle.

$2/mo $5/mo $10/mo One time

And this is certainly true. In Rothschild's day, before banking regulation and antitrust laws existed, it was indeed possible for small groups to gain controlling interests in enough financial institutions that it could be argued that they "controlled" a nation's money supply. Evidently the Senator made up the quote to support whatever speech he was making, and attributed it to a famous name to give it some clout.

Some claim the Rothschilds own half the world's wealth. If they do, it's only in the same way that you do. Anyone with an interest-bearing bank account owns shares in whatever funds their bank invests in. Those funds own shares in other funds and public companies, and so on. At some level, virtually every financial entity owns, and is owned by, any other entity, in every country. It's exactly like the degrees of Kevin Bacon. The notion that anyone could "control the world's finances" is ludicrous.

There is no longer any such thing as a monolithic House of Rothschild with connections to any significant number of all the scores of today's independent Rothschild business ventures. The closest thing is Rothschilds Continuation Holdings AG, a Swiss company that manages interests in many Rothschild-founded institutions. There are no longer any Rothschild family members on its board (the last having retired in 2011), though about eight Rothschilds are believed to own stakes in it (like many holding companies, it's privately held, so its records are not public). Its other owners include Rabobank and Hong Kong based Jardine Matheson Holdings. The Rothschild funds it manages now focus on mergers and acquisitions. Make no mistake, it's a large and successful company; but with billions in assets, it's a relatively small fish in the sea of world financial institutions with trillions in assets, including Deutsche Bank, Mitsubishi UFJ Financial Group, HSBC Holdings, BNP Paribas, Japan Post Bank, Crédit Agricole Group, Barclays PLC, Industrial & Commercial Bank of China, Royal Bank of Scotland Group, JP Morgan Chase & Co., and many others. Anyone trying to point the finger at the scattered Rothschilds as "controlling" world banks has an awfully tall order. That little factoid is about 100 years out of date.

By my analysis, the Rothschilds are best thought of not as an evil shadow conspiracy, but as a great success story of rags to riches, Jewish slum to financing the defeat of Napoleon. The price of gold is fixed twice a day by five members of the London Bullion Association: Barclays Capital, Deutsche Bank, Scotiabank, HSBC, and Societe Generale, and they conduct their twice-daily meeting over the telephone. Today this is mere financial necessity, but until 2004, it was also a century-old tradition as great as the ringing of the bell at the New York Stock Exchange. The five distinguished representatives included a Rothschild, and they met in person in a paneled room at the London office of N M Rothschild & Sons. That ritual is now a thing of the past, as is the power of the world's greatest financial dynasty.

Follow me on Twitter @BrianDunning.

Brian Dunning

© 2012 Skeptoid Media, Inc. Copyright information

References & Further Reading

Anonymous. "Alleged Federal Reserve Ownership." Web Skeptic: Researching outrageous claims on the internet. Anonymous, 10 Oct. 2008. Web. 18 May. 2012. <http://webskeptic.wikidot.com/federal-reserve-ownership>

Ferguson, N. The House of Rothschild: Money's Prophets, 1798-1848. London: Weidenfeld & Nicolson, 1997.

Griffin, G. The Creature from Jekyll Island: A Second Look at the Federal Reserve. Westlake Village: American Media, 1994.

Kaplan, H. Nathan Mayer Rothschild and the Creation of a Dynasty: The Critical Years 1806-1816. Stanford: Stanford University Press, 2006.

Neal, L. "The Financial Crisis of 1825 and the Restructuring of the British Financial System." Federal Reserve Bank of St. Louis: Review. 1 May 1998, Volume 1998: 53-76.

Reeves, J. The Rothschilds: The Financial Rulers of Nations. London: Sampson Low Marston Searle and Rivington, 1887.

Thomas, L. "The Man Who May Become the Richest Rothschild." The New York Times. 9 Mar. 2007, Newspaper.

Reference this article:
Dunning, B. "The Rothschild Conspiracy." Skeptoid Podcast. Skeptoid Media, Inc., 22 May 2012. Web. 23 Apr 2014. <http://skeptoid.com/episodes/4311>

Discuss!

10 most recent comments | Show all 219 comments

According to The Swiss Federal Institute (SFI) in Zurich released a study entitled "The Network of Global Corporate Control" that proves a small group have global economic control:
http://www.sg.ethz.ch/media/medialibrary/2013/12/james_glatteth-2007-02.pdf

The funny thing is that most of the mainstream media that are reporting this are actually owned by these SUPER ENTITIES.

CNBC
http://www.cnbc.com/id/45018010
A core of just 147 firms -- many of them financial companies -- control 40 percent of the wealth of 43,060 transnational corporations. A broader core of 737 control 80 percent, according to the theorists.

HUFFINGPOST
http://www.huffingtonpost.ca/2011/10/24/super-entity-147-global-economy-swiss-researchers_n_1028690.html
A Swiss study appears to have uncovered what anti-capitalist activists have been claiming for years -- that the global economy is controlled by a small group of deeply interconnected entities.

NEW SCIENTIST
http://www.newscientist.com/article/mg21228354.500-revealed--the-capitalist-network-that-runs-the-world.html#.UxF0CJUX7zs
"AS PROTESTS against financial power sweep the world this week, science may have confirmed the protesters' worst fears. An analysis of the relationships between 43,000 transnational corporations has identified a relatively small group of companies, mainly banks, with disproportionate power over the global economy."

FORBES
http://www.forbes.com/sites/bruceupbin/2011/10/22/the-147-companies-that-control-everything/
Three syste

se7ensnakes, fort lauderdale
March 05, 2014 6:59pm

Well the Federal Reserve is certainly controlled privately by a few, outside the day-to-day control of the US govt, and certainly outside the control of any ordinary voter at election time.

The Fed. Res., the central bank of America, is in effect outside of any democratic control whatsoever.

It's Board of Governors are appointed for 14-year terms, certainly outside the range of multiple presidential and congressional terms.

The monetary decisions of a relatively small group of private individuals are taken without any mandate or permission by those in the US govt that you voted for at election time.

All that happens is that the Federal Reserve reports to Congress a few times a year, AFTER it's decisions etc are made.

It's audits have notable exceptions of disclosure, which means that Congress effectively are not privy to some FedRes decisions,at any time.

And with some modifications from time to time over the years, the Federal Reserve has been around since 1913, which says a lot about any so-called American democratic system of govt, where at the end of the day even the govt that the people voted for doesn't know much about the financial manipulations that a few bankers and their corporate cohorts have carried out on a routine basis.

It also makes a mockery of basically a two-party system, echoed here in NZ, which while having some notable political differences on the surface, mean nothing when the real power is in the hands of a few private individuals, not the govt.

Macky, Auckland
March 08, 2014 1:38am

I was going to read this, but when I saw that you didn't even get the correct portrait for Mayer Amschel Rothschild (the image above is for Amschel Mayer Rothschild, his second children and eldest son) I reasoned that this article was missing a competent fact checker.

david, earth
March 28, 2014 5:08pm

Thanks for the correction, I gather that you are indeed correct. Image has been updated.

Brian Dunning, Laguna Niguel, CA
March 28, 2014 5:14pm

Dear Macky of Auckland

Absolutely a calm, thoughtful and well composed analysis of what occurs within the realms of the U.S. Federal Reserve, elections, etc. Brilliant. Spot on mate!

Regards

Maggie, New York
April 05, 2014 1:14am

Thank you Maggie.

I am impressed with the several posters who have clearly taken the time to research, and who have posted citations referencing the points they are making.

It makes a nice change from the unevidenced assertions that many posters make, both for and against the official line on these intriguing subjects.

I am still looking forward to Alan Wakefield's overall religious world-views on the Rothschilds, money, and the satanic conspiracy that apparently is in progress as we speak.

I have found that most of the belief systems I've encountered in my life have at least had a grain of truth in them, albeit under different terms at times, and Alan's views should be viewed by all, as examples of the way our world and its processes, both good and bad, are interpreted, whether one agrees with said interpretation or not.

That I believe is what "open-minded" really means, and leads to the proper exercise of skeptical enquiry, and critical analysis.

Of course, at the end of the day, it is belief that defines the human condition, even if we use science and critical analysis to define our reality, and/or plain faith in scientifically unprovable cosmology to direct us in the day-to-day conduct of our lives.

Macky, Auckland
April 05, 2014 10:23pm

I think you should change "Christian" to Catholic, real Christians would have loved the Jews. It was the Catholics that stole the faith and subjugated the Jewish people to be money changers. They called them Christ killers. The Catholic Church is also guilty of massive control and wealth headed by the Pope, beginning with Constantine!

Brenda, Portland
April 15, 2014 9:46am

First the Federal Reserve is not a private bank.

The NM Rothschild & Sons annual report lists no family member on the board, and they own only one small bank.

The Waterloo Story is debunked by Naill Ferguson in his two volume Tome to the family.

Forbes list only one member as being worth a billion dollars and he made his money from Face Book...

Brian you normal good digging is in the wrong place here most of the Rothschild stories are ruse. I knew a Rothschild, Susan, while she told me stories of dinner with gloves on and wild parties and inter family marriage they do not have the kind of money the internet proffers. Rich true, but no where near the way over the top numbers on the internet. When there is so much evil in the world why waste time on a worn out family left with little more than the name ...

Ellis Baxter, Scottsdale AZ.
April 21, 2014 10:16am

"First the Federal Reserve is not a private bank."

The Federal Reserve is the central banking system of America.

It comprises 12 main FedRes banks, a Board of Governors, and a monetary policy committee (FOMC) that operates outside of any US govt, and democratic supervision.

The FedRes system has both private and public components, other member banks, and as anyone should know, even a "public" company's owners are private individuals, whether major of minor owners, and free to buy or sell their shareholdings at will. Private owners in fact.

The members of the Board of Governors' terms are staggered, but extend for 14 years each, well outside of multiple presidential or congressional terms, and are free of any democratic public system of voting.

The FOMC committee, comprised of the members of the BOD, and the presidents of the 12 FedRes banks, sets monetary policy without needing authorization from the US govt.

The BOD head reports to the govt once or twice a year, and the FedRes audits have some exclusions from disclosure which simply means that Congress does not know what some FOMC decisions have been made.

Therefore from the point of view of "freedom and democracy" which America and its member Five Eyes countries promote, not only is the FedRes exempt from any democratic public voting system, but even those voted into the govt by democratic process have no say, or full knowledge, in the FedRes financial machinations.

It is, essentially, a "private bank".

Macky, Auckland
April 21, 2014 2:44pm

I have just one request of the Conspiracy buffs; pronounce the name correctly!! It is: ROT SCHILD, not Roths' Child. It means Red Shield. I might pay attention to the Buffs, if they could at least learn the correct name for this family, but since they are busy blaming the Jews for their own inadequacy, somehow I think there is very little chance these creatures will do it...

Dale Martin, Birmingham AL
April 22, 2014 9:50am

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