How Opium Trade Fueled the Sassoon Dynasty, the "Rothschilds of the East"

David Sassoon (1792–1864), born into a prominent Jewish family in Baghdad (or possibly Aleppo), traveled to Constantinople to appeal to Sultan Mahmud II, accusing the local governor Dawud Pasha of corruption. When Sassoon's actions became known, Ottoman authorities accused him of conspiracy and betrayal. He was subsequently arrested and threatened with death unless a large ransom was paid. 

David Sassoon (seated) and his sons Elias David, Albert (Abdallah) 

and Sassoon David, Bombay, around 1855. 

 

Facing death or ruin, Sassoon fled Baghdad in 1829. He reunited with his family in Bushehr, Persia, before resettling in Bombay (now Mumbai) in 1832. At the time, Bombay was part of the British Empire's holdings in India, before the British Raj period (1858-1947). The Sassoon family is said to have arrived there penniless, but they were equipped with resilience, high ambitions, unscrupulousness, multilingual skills, and an established extensive network within the Jewish Baghdadi diaspora that stretched from London to Shanghai.

 

In Bombay, David founded David Sassoon & Co. in a modest counting house, and traded in cotton yarn, tea, silk, spices, precious metals—and, critically, opium. Already an extremely profitable enterprise, the opium trade became even more lucrative after the First Opium War (1839-42), when Britain used a series of imposed treaties to open Chinese markets. Sassoon established branches across Asia—including in Calcutta, Hong Kong (1843), Shanghai (1845), Canton, and Yokohama—as well as in major cities in Persia and the UK, placing his sons in charge, similar to how the Rothschilds ran their operation in Europe.

 

The Opium Wars, which destroyed the Chinese Empire.

 

When patriarch David Sassoon died in 1864, he left his 14 children a fortune of approximately £4 million, roughly equivalent to $3 billion today. His company, David Sassoon & Co., continued to dominate the opium trade, controlling an estimated 70% of the India-to-China market by the 1860s and 1870s. Surpassing rivals like Russell & Company, Jardine Matheson, and Dent & Co., the family's immense profits for decades after his death cemented their status as one of the world's wealthiest and most influential families, earning them the nickname "the Rothschilds of the East." 

Following its initial 1729 anti-opium edict, China saw imports surge from 200 chests annually to 4,500 by 1800. This explosive growth accelerated in the 1830s, reaching 40,000 chests by 1838. The trade only intensified after the 1842 Treaty of Nanking, climbing to 70,000 chests (4,550 metric tons) annually by 1858, approximately equivalent to one year's worth of the total global production of opium between 1995 and 2005.

After David's death, the Sassoon family empire fragmented as his sons Abdallah (later Sir Albert) and Elias David established separate ventures. Elias founded E.D. Sassoon & Co. in 1867, and both branches diversified beyond opium, moving into cotton mills, banking, real estate, and infrastructure projects like the Sassoon Docks in Bombay and the iconic Sassoon House in Shanghai. As treaties phased out the opium trade in the early 20th century, the family’s focus on new industries became critical. David’s granddaughter, Flora (Farha) Sassoon, a daughter of Albert, became a partner and effectively ran the Bombay operations starting in 1894. Under her leadership, profits rose despite regional turmoil, but her brothers, unwilling to accept a woman in charge, removed her after just seven years.

 

Chinese opium smokers c. 1858.

 

While the Sassoons and other prominent figures—including Warren Delano Jr., Thomas Handasyd Perkins, John Perkins Cushing, John Jacob Astor, Robert Bennet Forbes and John Murray Forbes—built family fortunes, dynasties and financial empires on the opium trade, its human cost in China was devastating. The widespread addiction of up to 20 million Chinese destabilized society and drained precious metals from the Middle Kingdom during its “Century of Humiliation.” This economic and political chaos, a direct result of the two Opium Wars (1839–1842 and 1856–1860) and British and American opium trafficking, fueled a chain of disastrous events. The most catastrophic was the Taiping Rebellion (1850–1864), which resulted in an estimated 20 to 30 million deaths from fighting, famine, and plague. 

 

Opium stockpiled in a warehouse in Patna, 1850s: The Sassoon family's extensive opium trade into China was

directly related to the British East India Company's monopoly on opium production in places like Patna in Bengal.

 

In 1853, David Sassoon gained British citizenship, boldly affirming his allegiance to Queen Victoria in Hebrew and reframing the family's identity as "British-Jewish." His immense success in drug trafficking was accompanied by extensive philanthropy: he commissioned synagogues, schools, orphanages, hospitals, and libraries, dedicating about 0.25% of profits to religious and charitable tzedakah. By the early 20th century, the dynasty began to decline. This was a result of internal rivalries, over-assimilation into the British aristocracy, and poor strategic decisions—such as Victor Sassoon's failure to foresee Imperial Japan's rise when he centralized operations in Shanghai.  

Sir Victor Sassoon (1881-1961), the last of the great merchant princes of the Sassoon dynasty, with

glamorous women (including Marlene Dietrich on the right) during one of his Shanghai parties in 1935. 

 

Yet, today, the Sassoon family's legacy continues through the Sassoon Family Continuation Trust and J. Sassoon Financial Group LLC, led by non-executive chairman David Shlomo Sassoon. This modern entity has diversified away from the family's historical ventures, now managing investments in a range of sectors including composite materials, oil and gas, finance, mining, and food security, focused particularly on the US, Israel, and African markets. Beyond their financial operations, many of the Sassoons maintain a discreet profile and remain "grounded in Jewish heritage." This is exemplified by individuals such as Rabbi Sliman Sassoon, who leads initiatives like the Ohel David Sassoon Institute in Jerusalem, and by the fact that a street there has been named in honor of Flora Sassoon.

 

 

» Bruce Fein, Master Trustee of the Sassoon Family Continuation Trust, unveiled today plans to transfer all Trust's unsurpassed assets valued at over $100 billion to the United States located at present in Switzerland or elsewhere abroad. The Sassoon Family Continuation Trust originated 1495 in the aftermath of the Spanish Inquisition.  Its longevity and wealth are unrivaled.  The Trust proudly honors and celebrates Orthodox Judaism and is committed to the welfare of the United States and the economic and physical security of Israel. The trust's sole beneficiary is David E. Sassoon, grandson of Eli Nissim Sassoon and executive chairman of J. Sassoon Group, a Washington, DC based private equity and investment banking firm. « 

The Sassoon Family Continuation Trust, August 25, 2021.

  

See also:

Joseph Sassoon (2022)  - The Sassoons: The Great Opium Merchants and the Making of an Empire.
Amitav Ghosh (2023) - Smoke and Ashes: Opium’s Hidden Histories.

Beatrix Conti (2019) - The Sassoons: From Outsiders to Insiders of Empire 1830s – 1910s.
Steven Ujifusa (2018) - Barons of the Sea.

Frederic Delano Grant Jr. (1986) - A Fair, Honorable, and Legitimate Trade. 

 

了解你的敌人
Know your Enemies. 

The US Will Go Bankrupt, Collapse, and Break Up | Andrew Napolitano

The greatest threats to America come not from abroad but from internal overreach: a permanent surveillance state, secret executive militarism, congressional impotence, judicial passivity, and catastrophic debt. The formal structure of the Constitution remains, but its functional authority is evaporating. This points toward systemic failure.

 

 The Course of Empire, painting by Thomas Cole, 1836

Congress has abdicated its legislative role, the judiciary selectively enforces constitutional norms, and the executive rules increasingly by decree. Meanwhile, lobbying power from defense contractors and pro-Israel groups locks Congress into perpetual military spending—now over $1 trillion annually, more than the next ten countries combined.

 Map of the 2nd American Civil War, July 2025.

 

Domestically, the unchecked growth of executive power is matched by economic instability. The federal debt, nearing $40 trillion, carries annual interest exceeding $1 trillion—an unsustainable burden that threatens systemic collapse. Tariffs, imposed unilaterally and used as political weapons, drive up consumer prices while violating constitutional limits, which vest taxing authority solely in Congress. Courts may soon invalidate these executive-imposed tariffs, but political gridlock makes corrective legislation unlikely.

 

» Collapse—not through revolution, but insolvency. «

 

If unchecked, these dynamics will lead to the federal government's collapse—not through revolution, but insolvency. Unable to service its debt, pay salaries, or borrow, Washington could cease functioning. The likely outcome is regional fragmentation: a dozen or so independent republics forming along ideological and geographic lines—e.g., New England, Texas, and the Southeast. This breakup, though gradual and nonviolent, will mark the end of the United States as a unified federal entity.

 

Reference:
Andrew Napolitano (August 19, 2025)  - The US Will Go Bankrupt, Collapse & Break Up. (video)

 

 

» Decadence is a moral and spiritual disease. «

Lieutenant-General Sir John Bagot Glubb, 1978.

See also:

Neema Parvini (2025) - The "Iron Law of Oligarchy" and the Delusion of Democracy. 

Lieutenant-General Sir John Bagot Glubb (1978) - The Age of Decadence. 

Ray Dalio (2025) - Don't Think That What's Now Happening Is Mostly About Tariffs.

Serge Bernard (2016) - From Conquest to Affluence to Collapse: The 250 Year Empire Life Cycle.
Martin Armstrong (2024) - The Five Stages of the Revolutionary Cycle.

TPR (2024) - How fast Superpowers can Collapse.

 

了解你的敌人
Know your Enemies. 

The "Iron Law of Oligarchy" and the Delusion of Democracy | Neema Parvini

One of the primary issues with democracy is the "Iron Law of Oligarchy," as described by Robert Michels. Although democracy promises equality and freedom, an elite class inevitably holds power. Whether Professor Peabody, Sally Strawberry, or Pedro Orange is in office, an elite class persists. Even when one elite group is replaced by another, such as a shift from peas to strawberries, the system remains fundamentally unchanged. 

 

 Chuan Jianguo (特朗同志), Comrade Build the Nation, a.k.a. 

MAGA Traitor (MAGA 叛徒) and Genocide Don (种族灭绝唐). 

 

Michels' "Iron Law of Oligarchy" argues that the egalitarianism democracy promises is an illusion. Elites always emerge; even if the masses overthrow one, they soon create another. James Burnham, in "The Machiavellians," expands on this, asserting that any realistic political analysis must accept elites' inevitable dominance. This elite dominance reflects the Pareto principle, suggesting a natural 80/20 split between elites and society. 

» The oligarchy is a layer separated from the people. Sustained by privilege, wealth, speculation, and control of bureaucracy, it lacks a vital bond with the community. The elite directs the people's energy toward a common goal, takes risks alongside them, while the oligarchy does not. The oligarchy lives off the people's resources, manipulates them to maintain its position, and shields itself from any demand for responsibility it always avoids. Thus, the notion that the big fish eats the small one is unjust and mistaken, because the elite is the principle of life for a people, while the oligarchy is the principle of their decay. «

Francisco José Fernández-Cruz Sequera, 2025.

Plato ("The Republic," Book VI) and Aristotle ("Politics," Book IV) warned against direct majority rule, fearing tyranny of the majority and mob rule. In his "Discourses on Livy," Niccolò Machiavelli shared this view, citing the Gracchi brothers, Tiberius and Gaius, in 2nd-century BC Rome. Their land reforms to redistribute wealth from the aristocracy to the poor led to bloodshed and civil war. Machiavelli argued that the Gracchi erred in assuming the poor were less self-interested than the wealthy. By seeking the masses' approval, they fueled hatred between plebeians and the Senate, ultimately destroying the Roman Republic.

 

 

 Gaetano Mosca and Vilfredo Pareto:

The Intractable Problem of Democracy.

 

» The heirs began to degenerate from their ancestors, and, abandoning virtuous deeds, thought that princes had nothing to do but surpass others in luxury, lasciviousness, and every other kind of pleasure. Thus, the prince, becoming hated, and fearing because of this hatred, turned to tyranny, and many of those who helped establish it became its enemies.

These, conspiring together, brought about its ruin. And so the cycle continues. «
Discourses on Livy, Book I, Chapter 2, Niccolò Machiavelli, 1531. 

Machiavelli described a cyclical pattern where democracy transitions to tyranny. A wise and just ruler, the "prince," leads initially, but his successor often indulges in luxury, resulting in tyranny. An aristocratic class overthrows this tyranny, establishing a new government, but these aristocrats also become corrupt, ushering in anarchy and renewed tyranny. Machiavelli proposed a mixed government—a republic—where monarchy, aristocracy, and democracy are institutionally represented. This form is more stable and enduring than pure democracies or oligarchies, as exemplified by the Spartan Republic, which lasted 800 years compared to shorter cycles elsewhere.

 

 

» A hundred men acting uniformly in concert, with a common understanding, will triumph

over a thousand men who are not in accord and can therefore be dealt with one by one. «
Gaetano Mosca, 1896.

Despite this mixed government, challenges persist. In the 18th century, David Hume identified factionalism as a major democratic flaw. He argued that people naturally form factions based on personal interests, often undermining the common good. Even trivial differences, as seen in ancient Greek factions or recent civil wars, can spark factionalism. Modern democracies still face factions driven by religion, politics, or personal rivalries.

 

» The more the Devil has, the more he wants to have. «

Engraving by Jacques Lagniet, 1657.

 
James Madison, in his "Federalist Paper No. 10," addressed factions, proposing two solutions: removing their causes or controlling their effects. Eliminating causes requires abolishing liberty, which is impractical and undesirable. Controlling effects is more feasible. Madison argued that large republics dilute factional harm through diverse interests, making domination by one faction harder and offering voters more choices, thus reducing corrupt candidates' influence. However, Madison's vision did not anticipate political parties, now central to modern politics, nor the impact of communication tools like radio, television, and the internet, which amplify factional organization and influence.

 

» Oligarchy always rests upon force and fraud. «
George Orwell, 1946.

 

Mancur Olson, in "The Logic of Collective Action," identified another issue: large groups with shared interests struggle to organize due to high costs, while smaller, organized special interest groups effectively influence policy, even against the majority's interests. These groups often secure their goals, disregarding the public’s benefit. 

 

» Sovereign is he who decides on the exception. «
Political Theology, Carl Schmitt, 1922.

 

For example, candidates Sunny Strawberry and Lucy Lemon, running for office, receive offers from special interest groups like the Peas, Aubergines, and Pears, seeking government funding or tax breaks. To win, Sunny might pledge favors to these groups, even if the broader population gains nothing. If she refuses, the groups may support Lucy, who offers similar deals. This system ensures special interest groups dominate policy, leaving the general population underrepresented.

 

» You great star! What would your happiness be had you not those for whom you shine! «
Thus Spoke Zarathustra, Friedrich Nietzsche, 1883.

 

The general public, lacking special interests, struggles to organize and advocate for their agenda. Consequently, their needs are often overlooked in favor of well-resourced lobbies. Madison's republic and modern democracies face significant challenges. Representatives often prioritize electoral success over the common good, and their policies may fail without consequence. These systemic issues pose serious problems for modern democracies, and while solutions are elusive, recognizing and addressing these flaws is crucial.

 

Reference:

Neema Parvini (2019)  - Elite Theory: Gaetano Mosca and Vilfredo Pareto. (video)
Neema Parvini (2018)  - The Intractable Problem of Democracy. (video)

 

See also:

Neema Parvini (2022) - The Populist Delusion. 

Neema Parvini (2022) - The Liberal Political Theology.  

Ernst Jünger (1977) - The Forest Passage. (Der Waldgang) 

Imam Khomeini (1970) - Guardianship of the Islamic Jurist. (ولایت فقیه) 

 Mancur Olson (1965) - The Logic of Collective Action.

George Orwell (1946) - James Burnham and the Managerial Revolution. 

 James Burnham (1943) - The Machiavellians: Defenders of Freedom.

 Carl Schmitt (1922) - Political Theology. Four Chapters on the Concept of Sovereignty. (Politische Theologie)

 Robert Michels (1915) - Political parties; a sociological study of the oligarchical tendencies of modern democracy.

(Zur Soziologie des Parteiwesens in der modernen Demokratie) 

Vilfredo Pareto (1916) - The Mind and Society. (Trattato di sociologia generale)  

Gaetano Mosca (1896) - The Ruling Class. (Elementi di scienza política)

 Gaetano Mosca (1896) - The Rulers and the Ruled.

Juan Donoso Cortés (1851) - Essays on Catholicism, Liberalism, and Socialism.

(Ensayo sobre el catolicismo, el liberalismo y el socialismo)

James Madison (1787)  - The Federalist Papers : No. 10. 

David Hume (1741) - Essay XXII: Of the Parties of Great Britain.

Niccolò Machiavelli (1531) - Discourses on Livy. (Discorsi sopra la prima deca di Tito Livio) 

Aristotle (350 BCE) - Politics.
Plato (375 BCE) - The Republic.

 

了解你的敌人
Know your Enemies.

Putin-Trump Meeting to Be Followed by Market Panic Cycle | Martin Armstrong

The Putin-Trump meeting on Friday, August 15th, in Alaska preludes Martin Armstrong's forecasted Panic Cycle.  

 The Dow Jones Industrial Average Weekly Timing Array of August 4, 2025, 

highlights a Panic Cycle during the week of August 18-22.

 

Aggregate: Combines all models for key date insights.
Empirical: Fixed-frequency Transverse analysis, unique to each market.
Long Term: Fixed-frequency Transverse analysis, three times longer than Empirical.
Trading Cycle: Fixed-wavelength Transverse analysis, separating highs and lows; yellow bars show convergence, subject to Destructive Interference.
Directional Change: Marks decisive market moves, not necessarily highs or lows.
Panic Cycle: Targets abrupt moves, often outside reversals or capitulations, not guaranteed highs or lows.
Volatility: Indicate changes in volatility trend, not direction or specific highs/lows. 

 Understanding Martin Armstrong's Weekly Timing Arrays. 

The Panic Cycle becomes active during the week of August 18-22 and, according to Armstrong Economics, will be a period of extreme volatility that often triggers outside reversals of weekly, daily, and session ranges, projecting forceful directional moves.

 

Reference:
Martin Armstrong (August 8, 2025) - Trump Meets Putin for the Panic Cycle.

  

"Somebody has to show that not all Americans do support endless wars."
Martin Armstrong, August 15, 2025.

See also:
David Hickson (August 12, 2025) - Hurst Cycles Update for S&P 500, NASDAQ, Gold & Bitcoin.

Branimir Vojcic (August 11, 2025) - VIX Hurst cycles analysis. 

Buffett Indicator Hits All-Time High with Market Cap-to-GDP Ratio at 212.1%

As of August 12, 2025, the Warren Buffett Indicator has surged past 212%, marking its highest level on record.

 US market cap twice US GDP.

 

 

US debt hits $37T — surpasses entire $31T US GDP, 

matches combined GDP of China, Germany, Japan, India & UK.

 

The Buffett Indicator, or Market Cap-to-GDP ratio, rose to prominence as a long-term stock valuation metric following Warren Buffett’s 2001 'Fortune' interview, where he called it "probably the best single measure of where valuations stand at any given moment." 

The 2000 dot-com bust and the 2007 crash may seem mild by comparison.

 

The ratio compares US public market cap to GDP using the Wilshire 5000 Index, covering nearly the entire stock market.

 

Hurst Cycles Update for S&P 500, NASDAQ, Gold & Bitcoin | David Hickson

S&P 500: Phased with an 18-month (or larger) trough in early April, 80-day trough mid-June (debated position due to fundamentals), 40-day trough mid-July, and recent subtle troughs suggesting a distorted 20-week cycle influenced by bullish longer cycles. Alternative analysis considers 20-week trough possibly formed on August 1st, but preferred view is it's ahead.
 

S&P 500 (daily bars) and Composite Model (dashed orange line).

 

Long-term cycles in the S&P 500 (weekly bars, chart from December 2024): As of August 2025, the 

S&P is in the bullish 9-month (or 40-week) cycle phase of the third and final 18-month cycle within 

the current 54-month cycle, which is expected to bottom around December 2026.
 

Watch price interaction with 20-day FLD: support indicates 20-week trough has formed; crossing below suggests trough ahead. Bullish trend distorts cycles upward, with early trough possible within whiskers (mid-August range). Preferred: 20-week trough late August/early September, after a potential short bounce and decline. If trough formed early, expect upside to FLD-generated targets; composite model shows possible downturn soon.

 

 54-month cycle and its subdivisions:

18-month, 40-week, and 20-week cycles.

 

 

Projection of the current 18-month cycle in the S&P 500.

(consider Hurst's Principle of Variation) 

 

9-month cycle projection for the S&P 500 during 

the bullish phase of the current 18-month cycle.

 

S&P 500 - Detrended Seasonality.

NASDAQ: Similar to S&P 500, with 18-month trough April 7th, 80-day trough slightly late (77 days, mid-June), 40-day trough August 1st (39 days, running long). Cycles averaging longer wavelengths; good match to price troughs.
 

NASDAQ (daily bars) and Composite Model (dashed orange line).

Long-term cycles in the NASDAQ (weekly bars, chart from December 2024).

 

Monitor shorter cycles for shortening (e.g., 20-day at 13 days, 40-day at 28 days) as indicator of trend change. Bullish trend may push peaks higher/later. 20-week trough ahead (end August/early September), with potential bounce to lower/higher peak, then decline. Composite model suggests lower peak but bullishness could override; cycles likely continue long unless shorter ones shorten.

 

NASDAQ - Detrended Seasonality.

Gold: Sideways in wedge, testing $3,450 peak multiple times; synchronized peaks expected. Dual trough/peak analyses both valid: 40-week trough mid-May, 80-day trough July 30th (post-update), good FLD interactions (66.7% rating).

Gold (daily bars) and Composite Model (dashed orange line).

 

 Long-term cycles in Gold (weekly bars, chart from December 2024).

 

Trapped wedge suggests breakout imminent; combine trough/peak for composite. Higher peak at 20-week cycle (end August/early September), then potential upside continuation. Composite (dual) shows upward move post-20-day trough; expect FLD support.

 

Gold - Detrended Seasonality.

Bitcoin: 40-week trough mid-April, 80-day trough late June (clear), 40-day trough late (August 1st, expanded shorter cycles). Pure rhythms; similar to stocks, with bullish distortion.

Bitcoin (daily bars) and Composite Model (dashed orange line).

 

  Long-term cycles in Bitcoin (weekly bars, chart from December 2024).

 

Watch 20-day FLD: support indicates early 20-week trough; cross below confirms ahead. Excessive bullishness (possible larger trough in April) pushes amplitudes higher. 20-week trough ahead (end August/early September), after bounce to potentially higher peak despite model showing lower. Cycles running long; amplitude least reliable, but wavelengths suggest decline post-peak.

 

Bitcoin Shows Weakness: Is This the Final Top?, Philip Hopf, August 19, 2025. 

 

Bitcoin - Detrended Seasonality.

Historically, Bitcoin performs best in Q4. October averages around +22%, 

and November even +46% over the past 12 years.

 

Reference:
David Hickson (August 11, 2025) - Was That It? - Hurst Cycles Market Update. (video)

David Hickson (December 9, 2024) - Cycles to Watch into 2025. (video) 

 

See also: 

Intraday Cycles (August 15, 2025) - Update to August 2025  S&P 500 Forecast. 

Branimir Vojcic (August 11, 2025) - VIX Hurst cycles analysis.  

Branimir Vojcic (August 5, 2025) - S&P 500 20-Week Hurst Cycle Support Around 6,000. 

TPR (August 5, 2025)  - Insights into J.M. Hurst's 40-Week Cycle AKA the 9-Month Cycle.