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Bilderberg Meeting's Effect Showing

  • This year's annual Bilderberg meeting is barely over and already Europe is feeling the effects.
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By James P. Tucker Jr.

Just days after Bilderberg ordered interest rates increased worldwide, the European Central Bank (ECB) responded like a dog to the whistle. North America will be close behind.

The ECB increased its benchmark rate by half a point on June 8 in what the Bilderberg-controlled Washington Post approvingly described as "an unexpectedly bold move." It had been ordered just five days earlier by Bilderberg (SPOTLIGHT June 19).

Analysts said the increase to 4.25 percent on interest on loans to commercial banks was unexpectedly high but might help the sagging European currency, the euro.

David Rockefeller demanded the in crease to enhance profits for financial in stitutions, such as his Chase Manhattan Bank, and to increase unemployment by reducing job-creating capital ventures. Higher unemployment means lower wages.

Announcement of the interest rate increase came with a technical change in how the ECB conducts business. Instead of fixing the interest rate it charges member banks to borrow, the ECB will set a minimum rate and loan to banks that pay the highest interest rate.

In announcing the rate increase and minimum-rate policy, ECB President Willem Duisenberg called the actions "accommodative," which, in bank double-speak, indicates more rate increases, according to analysts.

But, in saying that the technical change "clears the horizon," Duisenberg was indicating that if member banks offer to pay enough above the new minimum, future formal increases may be avoided, analysts said.

Either way, bank profits will go up as employment goes down.

Thomas Mayer of the Goldman Sachs Group in Frankfurt, Germany, hailed the ECB action as "a bold move."

Goldman Sachs is always represented at Bilderberg. This year, John Thornton, its president, and Tommaso Padoa-Schioppa, a member of the ECB's executive board, also attended last year.

"If it works, price stability and the euro should benefit," Mayer said. "The risk is that they lose control of interest rates."

The variable-rate system will help the ECB control interest rates, analysts said. The ECB routinely receives bids from banks for more than 100 times the amount of money it wants to disperse into the system as a means of controlling interest rates.

Under the new system, more like the Federal Reserve System, they said, successful bidders will have to pay more than the 4.25 percent minimum, forcing the costs of borrowing still higher for businesses and consumers.

"This will permit Bilderberg, through its control of the ECB and ability to manipulate interest rates, to dictate economic conditions in Eur ope -- whether there shall be high employment and prosperity, or economic slow downs and resulting unemployment -- whatever suits the selfish motives of international financiers," said a high official of the State Department and long-time reliable source.

He predicted similar actions in the United States and Canada and -- through its brother group, the Trilateral Commission -- in Japan and other Asian nations.

"It's about global control," he said.