In this third post in our series on the Rothschild cesspool of made men and operatives, we examine one August Belmont Sr., born Isaac Belmont (aka Schoenberg) in 1813 to a Jewish family in Alzey, in the Grand Duchy of Hesse, in Germany.
After the death of his mother, Frederika Belmont (née Elsass), in 1820, when he was seven years old, his father, Simon Belmont, shipped him off to live with his uncle and grandmother in the German financial capital of Frankfurt am Main. Note the familiar and repeated Hesse-Palatinate-Baden Frankist cesspool pattern among the Rothschild cast of inner-circle characters.
Belmont attended The Philanthropin, a Jewish school, where he was considered untidy, ungovernable, rowdy and as bullheaded as he was bright. Yes, a perfect candidate to began his first job as an apprentice to the Rothschild banking firm in Frankfurt. At age 19 he was promoted to confidential clerk in 1832. Just as with earlier Rothschild banking operatives, such as Hamilton and Biddle, Belmont was yet another boy prodigy. He was around for more than five decades of skulduggery, but the focus of this post was his role in the Panic of 1837.
In July 1832, President Andrew Jackson vetoed a bill to recharter the Second Bank of the United States (BUS), the nation’s central bank and fiscal agent. Just like when the First BUS was shut down, the City of London boyz immediately set about with crash-and-burn plans as retaliation.
The causa promixa of the Panic of 1837 was the withdrawal of credit to the U.S. by British banksters. In just one day, the Bank of England liquidated U.S. securities. The method used to this day was the commodity-related price crash — in this case, primarily cotton and slaves.
This was amplified by the time-tested tactics of rumors and panic mongering. The source of this was often enough from within the Rothschild-controlled Bank of England, which is well described in Jessica Lepler’s book “The Many Panics of 1837″ [see Chapter 4 – Mysterious Whispers]. Certain clerks would start often-unsubstantiated rumors about firms failing, thus amplifying the panic. The Lugenpresse of that day would spread the rumors further.
When the City of London/Bank of England pulled the plug on the U.S. economy going into 1837, the Rothschilds sent Belmont to deal with the situation. There was a classic Crime Syndicate backstory or “slide” (aka lie) created that had Belmont, at only 24 years old, going to Cuba. However, somehow he stopped off in New York City. Meanwhile, as part of the Rothschild ruse, their agent, W.L & M.S. Joseph, was allowed to fail, with errand boy Belmont (aka Schoenberg) coyly stepping into the slot.
Then, against the instructions of his boss, Belmont started buying bargains from the economic swoon. Using a bottomless pit of funds and credit in the conditions of a credit squeeze for others, Belmont was buying depreciated paper and recently devalued sugar, cotton and other produce for resale at higher prices in Europe. Belmont would use a two-prong squeeze-play attack on prostrate creditors. Instead of forcing bankruptcy, he would offer debtor leniency while buying up their deflated bills and commodities at deeply discounted prices.
This is the same keep zombies afloat ploy used with whole countries in the modern era. And as with today, a fake phony narrative was concocted to cover Rothschild from looting claims. Although Belmont was given unusual full authority to act as soon as he did, James Rothchild spouted off a smoke screen, calling Belmont a “scoundrel” and instructed his nephews that “such an ass needs to be kept on a short leash!”
A “disgusted” and chortling James wrote to the Londoners, “We received a letter from Belmont but I didn’t have the patience to read it. He is a stupid man … and we are not so desperate for new business and would rather sort the old business matters out so that there is no need for anyone to go to America.”
This doth-protest-too-loudly ruse continued for some time as Belmont liberally committed Rothschild-supplied funds to giant shopping sprees of liquidated U.S. assets. Similar to 2008, certain Rothschild insiders in 1837 received timely loans from the primary central bank, the Bank of England, so they, too, could profit from the bust. Peabody & Co. washed, rinsed and repeated this scam in the Panic of 1857. Made man John Jacob Astor gained control of Citibank in ’37 [see “John Jacob Astor: Freemason, Intel Operative and Made Man“].
Although the Second Bank of the United States was no more, our old rascal Nicholas Biddle had formed a second private bank with funding sources from the Rothschild-controlled Bank of England. He also was actively accumulating on the cheap during the Bust.
Takeaway: It has been Winter Watch’s contention that some version of this method will be employed yet again in an impending American financial bust.