The Rothschild Formula was first reduced to writing by G. Edward Griffin in 1994. Below 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. To explain the Rothschild formula Edward Griffin wrote as follows; He said, 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: 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. 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. 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. 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. 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. William Norman Grigg in his article, 'Feeding the God of War' in the New American online magazine, writes that, Nations, like individuals, are devoured by the banking cartel when they are driven into debt. This is the value of creating monsters like Saddam Hussein, whose military machine was generously underwritten with debt-financed foreign aid subsidies from the U.S. government. Writes Griffin: “If an enemy does not exist at all, it will be necessary to create one by financing the rise of a hostile regime.” It is also useful to ensure that neither side emerges as the unambiguous victor. Griffin calls this framework for perpetual war the “Rothschild Formula,” named after the banking dynasty that became notorious for underwriting both sides in various 19th-century wars. The political elitists who follow that formula, Griffin observes, display “cold objectivity, immunity to patriotism, and indifference to the human condition … [in propelling] governments into war for the profits they yield.... As long as the mechanism of central banking exists, it will be to such men an irresistible temptation to convert debt into perpetual war and war into perpetual debt.” In our parallel with the Aztecs, the banking cartel plays a role akin to that of the Aztec priests who supplied Huitzilopochtli with a steady diet of human victims. Confronting the prospect of a pointless resumption of the UN-mandated war with Iraq, and an open-ended “war on terrorism,” the world must understand that these conflicts are fundamentally no different from the “Flower Wars” of Aztec antiquity: Ritualized bloodshed through which an embedded ruling elite retains its hold on power. 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.

It was introduced by Griffin. He stated that wars are convenient and proposed several mechanisms to finance it. Please read http://www.mecfilms.com/universe/articles/formula.htm for further details.