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Baron Rothschild: “the time to buy is when there’s blood in the streets.”

to be honest – i would like investors to do the exact opposite – i would like them to invest into stability – into making societies and economies fair, just and resilient – and not profit from the suffering of others – like vampires.

in short: be good citizens.

  • give 0% loans to people that need a modest home
  • give 0% loans to people that want to produce their own food, electricity, heating
  • give 0% loans to institutions that research technology for the benefit of all mankind

or you will have crash, crisis and violence over and over again.

The Rothschilds, a prominent family originally from Germany, established banking and finance houses in Europe beginning in the 18th century. Pioneers in providing capital for business and financing infrastructure projects such as railways and the Suez Canal, the Rothschilds molded the way the international world of high finance works today.

The Rothschild empire had its genesis during the 1760s when Mayer Amschel Rothschild (1744-1812) founded a banking business in his native Frankfurt, in the German duchy of Hesse. Over time, and with the help of his five sons, the family business expanded throughout several European countries.

Mayer Amschel Rothschild: The Founder

The Rothschilds’ empire had humble beginnings. Its founder, Mayer Amschel Rothschild, was born in 1744 and raised in Frankfurt’s Jewish ghetto.

During that era, Jews were legally required to live in small communities that were separate from Christians. They were also not allowed to leave their villages at night, on Sundays or on Christian holidays.

As a child, Rothschild lived in a house with about 30 other family members and learned about the business world at an early age – his father, Amschel Moses Rothschild, traded coins, silk and other commodities for a living. One of Amschel Rothschild’s clients was Crown Prince Wilhelm of Hesse.

Mayer Rothschild became an orphan at age 12, when his mother and father died in a smallpox epidemic. Before their passing, Rothschild’s parents wanted their son to become a rabbi. However, shortly after his 13th birthday, he decided to take an apprenticeship with a banking firm in Hanover, Germany. During his time there, Rothschild learned the ins and outs of banking and foreign trade from bankers who used their extensive connections and financial skills to advise and serve the reigning nobility; some of these bankers had risen to the status of what were known as “court Jews,” or court factors.

The Beginnings of a Banking Empire

Rothschild returned to his hometown of Frankfurt when he turned 19. Along with his brothers, he continued the commodities and money-trading business their father had started and also sold rare coins. Through his rare coin business, Rothschild met Crown Prince Wilhelm, who in 1785 became Wilhelm IX, Landgrave of Hesse-Kassel, and eventually the European continent’s richest man. Rothschild was soon providing other banking services to Wilhelm and a number of nobles, and by 1769, he was given the title of court factor. In 1770, he married and went on to have 10 children – five sons and five daughters.

Expanding and Controlling the Rothschild Footprint

The Rothschild banking empire benefited tremendously from the French Revolution. During the war, the Austrian army contracted Rothschild to supply it with a range of items, including wheat, uniforms, horses and equipment; he also facilitated monetary transactions for Hessian mercenary soldiers. Around that time, Rothschild sent his sons to live in the capital cities of various European countries with the goal of establishing banking businesses in Naples, Vienna, Paris and London, in addition to Frankfurt. With Mayer Rothschild’s children spread across Europe, the five linked branches became, in effect, the first bank to transcend borders. Lending to governments to finance war operations over several centuries provided the Rothschild family with ample opportunity to accumulate bonds and build  additional wealth in a range of different industries.

Before he died in 1812, Mayer Rothschild left strict rules for his descendants on how they should handle the family’s finances. He wanted to keep the fortune within the family and, as such, encouraged the arrangement of marriages among relatives. According to an article published in the August 2003 issue of Discover magazine entitled “Go Ahead, Kiss Your Cousin,” “Mayer Amschel Rothschild arranged his affairs so that cousin marriages among his descendants were inevitable. His will barred female descendants from any direct inheritance. Without an inheritance, female Rothschilds had few possible marriage partners of the same religion and suitable economic and social stature – except other Rothschilds. Rothschild brides bound the family together. Four of Mayer’s granddaughters married grandsons, and one married her uncle. These were hardly people whose mate choice was limited by the distance they could walk on their day off.”

Nathan Mayer Rothschild

Of the four Rothschilds who ventured out, Nathan, the third son (1777-1836), achieved the greatest success. Nathan took over the lead role in pioneering international finance. Using a network of carrier pigeons and couriers to communicate with his siblings, Nathan acted as a central bank for Europe – brokering purchases for kings, rescuing national banks and funding infrastructure, such as railroads, that would help start the Industrial Revolution.

Nathan had moved to England in 1798. There he founded a textile jobbing business with £20,000 of working capital, the equivalent of £2 million today. He also began trading on the London Stock Exchange and eventually founded a bank, which became N M Rothschild & Sons Ltd. The firm is the country’s seventh oldest bank in continuous operation. Although privately held and still controlled by the Rothschild family, N M Rothschild & Sons Ltd. reported a net income of £51.558 million in 2015.

Like the other Rothschild banks that were subsequently set up throughout Europe, N M Rothschild & Sons Ltd. furnished credit to the government during times of war and crisis. During the Napoleonic Wars, for example, it managed and financed various subsidies the British government sent to its different allies and lent funds to pay the British troops, almost single-handedly financing the British war effort.

In 1824 he and Moses Montefiore cofounded the Alliance Assurance Company, which lives on today as RSA Insurance Group. Nathan also helped fund the newly founded country of Belgium in 1830 and gained the rights to the Almadén mines from the Spanish government in 1835, securing a European monopoly on mercury, which was used to refine gold and silver. The supply of the chemical came in handy in the 1850s, when NM Rothschild & Sons started to refine gold and silver for the Bank of England and the Royal Mint.

Growing Philanthropic Activities 

Nathan contributed to many areas of philanthropy in the Jewish community. His family later expanded these charitable efforts to other populations in Paris and London. His earliest efforts went toward synagogues in London. He continued to champion this work, which eventually led to the formation of United Synagogue, a larger organization that helped streamline the causes of the smaller individual synagogues. Later, various family members supported the creation of Israel and helped with the construction of government buildings.

Rothschild had seven children with his wife, Hannah Barent Cohen. Those children followed and built on their family’s philanthropic tradition. The Rothschild Archive reports that Nathan’s youngest child, Louise, and her seven daughters took responsibility for many of the 30 Rothschild charitable foundations in Frankfurt. These included public libraries, orphanages, hospitals, homes for the elderly and special funds allocated for the purpose of education. The Jews’ Free School in London, in particular, received extensive financial support. Educational efforts in Austria, France and Israel were also made possible through Rothschild generosity. In addition to monies put toward education, the family gave an estimated 60,000 pieces of artwork to numerous organizations. The Rothschild family expanded the creation of social housing in the cities of London and Paris, and the Rothschild Foundation was created to further these efforts.

The House of Rothschild in the 20th Century

Internal and external change – including world wars, politics and family rivalries – diminished the family fortune over the next 100 years. The Naples branch of the bank had closed in 1863 and a lack of male heirs led to the closing of the Frankfurt branch in 1901; the Vienna branch was shuttered in 1938 after the Nazis invaded Austria and Jews were endangered in the lead-up to World War II. The Vichy government in France expropriated Rothschild Bordeaux properties during the war and the Nazis confiscated millions of dollars’ worth of art, jewels and precious objects from the Austrian branch of the family (a portion of these were returned by the Austrian government in 1998). Over the years, palatial Rothschild estates were gradually donated to the British and French governments and to other organizations and universities.

By the 1970s three Rothschild banks remained: the London and Paris branches and a Swiss bank founded by Baron Edmond Adolphe de Rothschild (1926-1977). In 1982, president Francois Mitterrand’s socialist government dealt the Paris bank fatal blow, nationalizing it and renaming it Compagnie Européenne de Banque. Despite his independence – and resentment at being called “le petit Edmond” (a reference to his small stature among the generally tall Rothschilds) – Edmond came to the aid of his cousin, Baron David René de Rothschild (1942- ), who had stayed in Paris and in 1986 created Rothschild & Cie Banque. David quickly built it into France’s second largest merchant bank. In 2003, the British and French banks were united with David as chairman, and in 2008 all of the holdings were reorganized under a single company, a shareholder of Paris Orléans based in France, unifying the family businesses roughly two centuries after the five sons of Mayer Rothschild spread out across Europe.

Moving into the 21st Century

The family wealth has been divided among many descendants and heirs throughout the years. Today, Rothschild holdings span a number of industries including, financial services, real estate, mining, energy and charitable work. The family also owns more than a dozen wineries in North America, Europe, South America, South Africa and Australia.

Traditionally, the Rothschild fortune is invested in closely held corporations. Today, Rothschild corporations have continued to see success. Most family members are employed by these corporations directly or are invested in operations that generate family wealth. The remarkable success of the family has largely been due to a strong interest in cooperation, being entrepreneurs and the practice of smart business principles. The estate of Nathan Rothschild was intimately tied to the other fortunes of the family and became part of the collective wealth each Rothschild passed to the next generation. Rothschild descendants continue to finance global business operations and contribute to scholarly, humanitarian, cultural and business endeavors.

The family motto is: Concordia, Integritas, Industria, which means “Harmony, Integrity, Industry.”

src: investopedia.com

https://en.wikipedia.org/wiki/Rothschild_family

http://www.rothschild.com/

small entrepreneurs being able to pursuit their idea are essential for the creativity of an economy – established big companies are like big ships: they are pretty hard to change and adapt – so it is no “wonder” that the big US but also German car manufacturers are in serious trouble over the lack of allowed creativity.

Apple, Google all these companies started out in garage size – provided the funding – they were able to grow into the BigData monsters that we are both feeding and battling on a daily basis.

not only Tesla but a electric garage car company from CROATIA (!) is now – literately – overtaking Ferrari:

and they already have the successor to this “electric rocket”: The Concept S is a lighter, more powerful, more aerodynamic and track-oriented iteration of the Concept One.

The electric motors in the Concept S can generate 1,384 hp (1,032 kW), enabling the car to accelerate

from 0–100 km/h (0–62 mph) in just 2.5 seconds

and attain a top speed of 227 mph (365 km/h).

“proves EVs can be spectacular to drive”.[31]

(src: Wikipedia.org)

a good indicator if a economy is working or not: how happy are the  self employed people

Dying of Greek companies slowed down 2013 to 2016 just to rise again in 2017.

https://www.creditreform.de/fileadmin/user_upload/crefo/download_de/news_termine/wirtschaftsforschung/insolvenzen-europa/analyse_EU-2017-18.pdf
https://www.creditreform.de/fileadmin/user_upload/crefo/download_de/news_termine/wirtschaftsforschung/insolvenzen-europa/analyse_EU-2017-18.pdf, Page2

Dying of Greek companies slowed down 2013 to 2016 just to rise again in 2017.

https://data.oecd.org/chart/5vAa
https://data.oecd.org/chart/5vAa

… self employment rate is and was pretty low in USA, (6.3%) compared to other countries.

It has been pretty high in Greece but is going down steadily, as it is in most countries except: United Kingdom, Netherlands and Chile.

i can only speak for Germany:

  • you really DO NOT WANT to be self employed in Germany – unless you found a massive reservoir of oil in your garden (have at least 300.000€ of cash flow a year)
  • In Germany being self employed unfortunately worsens your legal position “automatically” and causes “bureaucratic overhead” towards health insurance, tax, loans, unemployment guarantees and so on and so forth.
    • tax is complicated and high 40% on income
    • loans? what loans? if you do not want to gamble with your home as security
    • as employee you do not risk your home, as self employed you do
  • not even Dentists want to be self employed anymore:
    • most people, prefer being without job, than starting a company
    • even nowadays fresh from university Dentists (one of the (still) best paid self-employed healthcare jobs in Germany) prefer to become employees in a big dental practice, instead of taking on the risk of a huge loan (0.5million€ at least) to start their own dental practice.

If the state / the EU is not propping up legal position / privileges and simplifies the tax and loan laws for entrepreneurs, it is not hard to predict, that self-employment-rates will continue down.

One proposal would be:

  • if you want an more innovative economy, if you are creative and believe in an idea you have and want to start your own company and maybe create jobs:
    • send in your concept and how much money you need to “the EU” (whoever feels responsible there)
    • if they like your concept they should provide you with a 0% loan over 30 years pay back when you want, no real estate securities needed
    • first 3 years you do not pay taxes at all

… then you can “find out” if “the market” and the economic conditions the market is in right now (not the best shape) accepts your business idea – or not – without risking anything.

Not exactly what you would like to see from a banker’s perspective:

  • if nobody is taking loans
  • if no bank is providing loans with conditions interesting to people

You can call it a crisis.

Copying bad US-ideas, that already have proven wrong:

looming doom – Germany now allows more privatization of it’s healthcare

Lobby driven politicians changed 3 words in a law – now Saudi Arabia can buy German hospitals and privatize them for maximum profit – nobody can compete with players with this much of cash.

Not exactly what you want for a healthcare system – it is NO NEWS that privatization of healthcare worsens healthcare in quality and increases it’s costs. (the exact opposite is propagated by lobbyists).

But who cares – surely not our politicians who play dumb and stupid.

If you do not believe me, please study the case “health care system USA vs Canada” as an example.

wow – so private health care system stems from one main reason: redistribution of wealth.

or in other words: rich people do not want to “lose” one penny more than absolutely necessary to poorer people – because being greedy is/was what made them rich in the first place.

now how many people in a society you can categorize as rich? It is probably 1-10%.

so if democracy was working the will of the 90% would weigh more than that of 1-10%.

so surely a lot of countries that call themselves democratic are by no measure democratic and should stop accusing dictatorships of being undemocratic.

a human live, governments and laws are about money,

but they should not ONLY be about money

if a centralized society approach is not serving the interest / to the benefit of people – they – the people have every right to become decentralized / independent – generate their own food security money energy laws.

because the responsibility they have given away ( to Washington, Brussels, Berlin, London) was abused.

as democracies have grown bigger (in population, in size, Greece (where democracy was invented) are now only 10Mio people) – as power was more concentrated (fascism = fascio = concentration of power) – democracies have grown more corrupt and more fascist.

a rough overview of corruption in the EU

With an “pretty obvious to spot” phone call bribery scam Rupert Murdoch (Fox News) was able to “buy” 5% of EU politicians.

“I once asked Rupert Murdoch why he was so opposed to the European Union. ‘That’s easy,’ he replied. ‘When I go into Downing Street (London/England) they do what I say; when I go to Brussels they take no notice.’” (src)

On forbes lists

 

if he would have done it a little more clever – maybe he could have been able to buy 10%.

this is 10% too much.

and all politicians involved had to step down.