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The CEO of Carelon in Ireland, John Shaw, with former Taoiseach Leo Varadkar at a business awards ceremony in 2023.

Hundreds of workers at IDA star client in the dark on redundancies one month on

Over 300 staff are waiting to hear their fate over a month on from the multi-national saying it may pull out of Ireland.

THERE WAS A BUZZ in Carelon in March, the company’s annual ‘All Hands’ event was happening on Thursday, the 27th, in Limerick city, and every one of the 300 staff members had been offered a hotel room in either The Strand or The Savoy – surely a sign that things were going well.

Not that anyone was worried. In 2024 the company carried out a recruitment drive for 100 additional personnel, and in the financial year ending 2023, it posted profits of €226 million.

Then on Monday before staff were told the event was canceled. Panic ensued – everything had been booked, it would cost the firm thousands to cancel. By Wednesday redundancy rumours were swirling.

When Thursday itself came around, staff were invited to a Teams meeting with a man most were not familiar with – Rajat Puri, the President of Carelon Global, which is part of Elevance Health, one of the biggest health insurance firms in the US.

Within fourteen minutes he explained to them that the company was considering pulling out of Ireland altogether. No questions were taken – nothing was put in writing to staff who weren’t working the day of the call. 

“A colleague of mine who was off at the time read about it that night in the papers, he sent me an article link and said: ‘Is this true?’, I had to tell him it was, like, that he’s probably going to lose his job,” one employee told The Journal.

Over a month later, after a 30 day consultation period ended on 6 May, the staff have still not been given a formal notice of redundancy, or even been told if they are in fact being made redundant.

A spokesperson for Carelon told The Journal: “As part of our ongoing review of business operations and given the changing healthcare landscape, Elevance Health continues to consider ceasing operations of Carelon Global Solutions Ireland Limited.”

“We understand this news has been difficult for associates, whose achievements and continued dedication and service are fully appreciated, and we are committed to supporting them as we work through this process,” they added.

“Hysteria would not be an exaggerated way to describe how people feel at this stage. When management does face us, hundreds of questions are lodged on Teams, we get no clarity in return. 

“Some people are pregnant, expecting babies in the next few weeks, others have bought houses. The CEO, John Shaw, always told the media how proud he was that over 60% of our workforce are ‘new Irish’, as in from overseas. They have brought their families here, their kids go to local schools. Their visas depend on them having this job,” a Carelon worker said.

The management forwarded an email to staff on 8 April from an official in the Department of Social Protection who said that the Minister for Enterprise had informed them that the company may be making all their staff redundant. The official asked that Carelon share a PDF from Intreo on how collective redundancy works.

“Since then we’ve had nothing in writing from management that would tell us what is going to happen with our jobs. Irish management seem to have very little information, and they can’t really explain to us why the company is closing down here.

“They asked us to put together an employee representative committee, which had a €12,000 budget for legal advice, which has been spent. The consultancy period – in which the company is speaking with the IDA and the Government, expired the Friday before last, and we’ve heard nothing, but the company is refusing to provide any further funding for our representative committee,” one worker said. 

On Fridays in Carelon, management and staff take part in ‘ask anything’ sessions via an online call.

“Two of those have been cancelled in the last month. One week the CEO actually said he was cancelling it because he had an important meeting, which we later found out was with the IDA. 

“It doesn’t feel like we, the employees, are the focus at all, but rather, the company is setting up the cleanest exit possible, and minimising its financial loss,” a worker said.

IDA funding

The Irish Industrial Authority (IDA Ireland) hailed Carelon setting up its Limerick HQ in 2021 as a boost to the local economy, and a sign that Ireland has become a destination for “top talent and investment in the healthcare sector”.

In the financial year ending 2023, it provided the company with over €832,00 in Government grant money, having given the company over €375,000 the year before.

In 2023, the company, which was formerly known as Legato, won the overall award for best firm at the Limerick Chamber Regional Business awards, it was also named as the best employer.

What does Carelon do? 

Carelon says that it provides “unparalleled information technology application support” in order to “make the world a healthier place”.

The company’s CEO John Shaw says that the firm pushes “the limit of what is possible in healthcare technology by using tech to achieve “full and complete care”, and the CEO of the IDA has previously praised the company for its “innovative” research and development.

The employees say that the client for Carelon Ireland is chiefly its parent company, and the majority of the workforce are helping Elevance to develop an automated system that will flag potentially fraudulent or frivolous health insurance claims made by customers.

“We say that we offer healthcare solutions. Most of us in data each day are dealing with huge swathes of code aimed at automating how the company spots things that would invalidate claims – like overlapping dates, for example, it appears to be an issue for the company is that the intellectual property rights for those systems is with Ireland now,” a worker said.

The company’s financial records show that its sales are wholly to related parties in the US.

“We’ve been told by Irish HR that the reason for closing is financial, for operational simplicity, and so the parent company will have less sites to manage. That is seriously confusing and disheartening – we were always told by management that the company was offering a career, rather than a short term job,” an employee told The Journal.

Political intervention

In the Dáil on 3 May Sinn Féin TD Rose Conway-Walsh asked the Minister for Enterprise Peter Burke if he was working with management at Carelon to “explore alternatives” to layoffs, which she said would be a blow for the workers and to Limerick. 

The Minister said that the Government are “first responders” when this kind of difficulty arises, and added that Research and Development grants it provides “cement the next product line and embed the next level of patents and IPs”. 

He said that he repeatedly challenges the IDA on its risk profiling, and added that the IDA will be investing billions in R&D over the next five years. 

Carelon was asked for comment on Thursday and had not replied by yesterday evening. IDA Ireland has said it does not comment on client companies. 

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16 Comments
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    Mute Brian Keelty
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    Aug 10th 2023, 2:11 PM

    Of course they have, they couldn’t upset their masters

    638
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    Mute Shaun Gallagher
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    Aug 10th 2023, 3:03 PM

    @Brian Keelty: We are really being taking to the cleaners. Yet they will still most likely be voted back in

    277
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    Mute Tommy Haze
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    Aug 10th 2023, 3:15 PM

    @Shaun Gallagher:
    This is the thing. People predicting we’ll have a new left wing alliance with Sinn Fein at helm and a bright egalitarian socialist future ahead of us are ignoring the numbers.
    FineGreenaGaelaFail know they’ll be back in unless there’s a political disaster hidden in the long grass.
    They’re just biding their time, whistling in the wind.

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    Mute Tom Newell
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    Aug 10th 2023, 4:13 PM

    @John John: u mean where the DUP literally say no to everything that doesnt look orange, requires a tri-colour to be burned or kissing pictures of king billy before they go to bed at night

    86
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    Mute Peter
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    Aug 10th 2023, 2:11 PM

    We are the taxpayers, we decide. Next election will be fun. Last winter was tough with high energy costs, wait until this winter with higher mortgage/rents too. Gas prices going back up.

    355
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    Mute Dave C
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    Aug 10th 2023, 2:52 PM

    @Peter: Surprised there was little out cry at the article recently on the CRU giving the go ahead to GNI to increase gas prices, so yes expect a rise in unit rate shortly!

    83
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    Mute I'm Far Right
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    Aug 10th 2023, 2:59 PM

    @Peter: No. We are the debt slaves. You WILL give the government a cut of everything that you earn or they WILL throw you in prison. They’ll do what they like with it and you will have no say in the matter. We won’t call it extortion though… we’ll call it democracy. More palatable that way.

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    Mute Dave C
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    Aug 10th 2023, 3:05 PM

    @I’m Far Right: Democracy, picking from the best of the best… Reality picking from the chosen few who might not do you over 10/10 style.

    14
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    Mute Dave Barrett
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    Aug 11th 2023, 10:25 AM

    @Peter: Very possible mortgage arrears will be surfacing more and more as everything rises.

    1
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    Mute Tommy Haze
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    Aug 10th 2023, 2:55 PM

    Both right and left wing governments across Europe in agreement about financial profiteering by the banks.
    Of course our government takes a different line.

    223
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    Mute Dan Dare
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    Aug 11th 2023, 2:09 PM

    @Tommy Haze: If they are then they have no clue about banking because these profits are being caused by the increase in the base rates from the ECB, which is an organisation that is answerable to those very same governments… See, this is the kind of sham governance you get when you vote for populist governments like SF. Be smarter.

    1
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    Mute James Groden
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    Aug 10th 2023, 2:19 PM

    Whatever you do, ignore the 34 arrests by Interpol in Ireland today…

    186
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    Mute Brendan O'Brien
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    Aug 10th 2023, 2:38 PM

    @James Groden: Actually between 15 and 29 May. Cybercrime.

    27
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    Mute Davy
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    Aug 10th 2023, 2:34 PM

    FFG are truly anti-Irish …

    273
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    Mute Mtk
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    Aug 10th 2023, 2:11 PM

    As the government have their fingers in the banks coffers already why would they tax themselves? They want to make them attractive for sell off

    159
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    Mute Mick McGuinness
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    Aug 10th 2023, 2:32 PM

    The Circus performers afraid upset their EU Ring Masters.

    148
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    Mute Aidan Mcguire
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    Aug 10th 2023, 2:41 PM

    To James Groden,,,couldn’t reply directly to you..you won’t hear about those arrests on our news channels..The 34 were members of a vicious African mafia style gang called ‘black axe’….shush now….Cultural enrichment a gogo…

    189
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    Mute Brendan O'Brien
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    Aug 10th 2023, 2:48 PM

    @Aidan Mcguire: They are financial scammers.

    Migration is a fact of life, as is the fact that some migrants, including Irish ones, are criminals of one sort or another.

    42
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    Mute Thomas Berry
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    Aug 10th 2023, 2:52 PM

    @Aidan Mcguire: It was in May and it was covered in the media. You must living in a cave or something.

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    Mute Tom Donnell
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    Aug 11th 2023, 11:40 AM

    @John John: And in order to be fair, all emigration aswell?

    1
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    Mute Aidan C
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    Aug 10th 2023, 2:56 PM

    Every interest rate increase,the banks profit increase. This connection needs to stop.
    There are better ways to take money out of circulation.

    62
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    Mute rock chick
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    Aug 10th 2023, 4:48 PM

    Donohoe and the Governor of the Central Bank need to resign their positions or be relieved of their duties.Causing so much distress and hardship for so many families while spouting out the usual mantra about fighting inflation simply doesn’t wash anymore.Lets get someone in charge who has the interests of all the people and use the enormous profits for the common good.We have had enough from them banking shysters who have continually given two fingers to the people
    after the bail out.LETS SEE SOME GENUINE PATRIOTISM.

    66
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    Mute Niall Sheridan
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    Aug 10th 2023, 5:15 PM

    Our politicians won’t do this!! They need good bank board jobs after the next elections when they are forced “to retire to spend more time with their families”!

    44
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    Mute Richard Maher
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    Aug 10th 2023, 3:57 PM

    We mustn’t upset the banks

    41
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    Mute Tom Newell
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    Aug 10th 2023, 4:11 PM

    nah they rather have the taxpayers pay for everything sure

    35
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    Mute Telemachine
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    Aug 10th 2023, 4:02 PM

    How could they afford to displase their future employers.

    31
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    Mute Rodney Byrne
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    Aug 10th 2023, 8:02 PM

    Inheritance threshold tax for children is 4% in Italy over €1 million. In Ireland it’s 33% on amounts over €335000. Wake up people of Ireland

    30
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    Mute Injustice Cop
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    Aug 10th 2023, 7:37 PM

    Can I get my USC money back please? Dropping this charge after the 2008+ recession was a promise that was never kept. And for those smart-backsides out there who argue there’s still a recession, there’s not.

    29
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    Mute did you every wonder
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    Aug 10th 2023, 10:14 PM

    @Injustice Cop: totally agree. What does.the USC pay for now anyway. Is it still for the bail out of the billion euro profit banks ?. Something stinks here.

    16
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    Mute Stephen Walshe
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    Aug 10th 2023, 6:17 PM

    A billion in profits and our banks rob us on mortgage rates and those Kurt’s in the dail stand by watching people go under.

    33
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    Mute Dave Grant
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    Aug 10th 2023, 3:02 PM

    What a shocker!

    24
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    Mute john christopher
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    Aug 10th 2023, 5:19 PM

    Now they wouldn’t want to upset the bankers would they. But they screw every cent out of Joe public

    30
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    Mute Paddy C
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    Aug 10th 2023, 7:41 PM

    Great the way the banks could be bailed out fairly quick but the people who paid the price for they’re reckless lending can be hung out to dry,what did we expect I suppose certainly not much action from those cabbages in the dail hard enough to keep Eamon awake for the day that’s in it, absolute joke

    20
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    Mute Tommy O'Neill
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    Aug 10th 2023, 4:30 PM

    Ferret Hayes won’t let them!

    15
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    Mute Proinnsias O'Dubhlaoich
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    Aug 10th 2023, 7:20 PM

    Was there ever a more dishonest shower in power, every single thing they say and do is so disingenuous . Pretending they can’t force the banks to pass on the interest rates to savers like they did to borrowers. Like we have to take all these military aged men in under International protection nonsense when we know they’ve invited them here. Taking in fake Ukrainian refugees with their big Audis and Mercs when 80% of that huge country has no conflict whatsoever. Every word out these traitors is a lie, buying people’s silence with 30 pieces of silver at every budget. When are the Irish people going to realise their country is being demographically altered permanently and they will lose their homeland in a very short space of time at this rate. Just take your face out of your phone and observe what’s happening to you country, by the way our government are delighted thousands of well educated and qualified young people are heading away, more room for the new Irish.

    23
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    Mute Wombleman
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    Aug 10th 2023, 4:46 PM

    @Tom Newell: It’s not a binary choice between saving in a cash deposit or not spending at all.

    You save what you need for short term emergencies in a cash deposit and you invest the rest so you can earn a return in excess of inflation. That way, when you retire you are not poor.

    We have over €150bn in private personal deposit accounts in Ireland earning an average rate of 0.03% which is ridiculous. It is also no coincidence that we have the second lowest rate of financial literacy in Ireland.

    Deposits and cash are an absolutely terrible choice for long term savings, that’s simply an undeniable fact.

    12
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    Mute Trent
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    Aug 10th 2023, 2:35 PM

    Giorgia Meloni looks very confused

    11
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    Mute Tommy Haze
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    Aug 10th 2023, 3:04 PM

    @Trent:
    Eh! mi scuzi signori, I’m a trying to help a the people.
    What’s a the problemo?

    13
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    Mute Trent
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    Aug 10th 2023, 3:15 PM

    @Tommy Haze: Either that or she’s banging out a Pavarotti Hahaha

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    Mute Tommy Haze
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    Aug 10th 2023, 3:17 PM

    @Trent:
    O sole mio!

    5
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    Mute Paddy C
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    Aug 10th 2023, 7:29 PM

    Pity we don’t have leaders with courage like her

    12
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    Mute Vincent Hickey
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    Aug 10th 2023, 9:39 PM

    Wait until we are forced to go cashless then you’ll see the true vipers they are controlling people’s lives watch this space

    11
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    Mute Roj Blake
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    Aug 10th 2023, 4:17 PM

    Sensible to learn from the mistakes other countries have made

    7
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    Mute Wombleman
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    Aug 10th 2023, 3:43 PM

    Meloni made a bags of it and had to move swiftly to cap the tax at 0.1% of asset value.

    Also, forcing banks to increase interest rates on deposits is a terrible idea, it will encourage people to keep too much cash on deposit rather than put it to work in the economy and, as central banks have to make sure that passive cash loses out to inflation in the long term, all it will do is ensure that more people lose the value of their savings in the future.

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    Mute Tom Newell
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    Aug 10th 2023, 4:16 PM

    @Wombleman: yet when people dont save and have nothing for when they retire etc the same people complaining this will cause people to save too much will be whining again

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    Mute Monty Carlow
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    Aug 11th 2023, 11:20 AM

    Our crowd can’t stand to see us on anything other than basic income. This house of cards will soon fall.

    3
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    Mute James murphy
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    Aug 13th 2023, 4:19 PM

    The Rothschild’s and Rockefellers control our banking system with usary. They also control our country along with others through their bonds purchases across all state departments. They also control our political parties. Their bank accounts need to be audited. That’s when the proof will come out. The bond holders were not burned during the crisis because they were the globalists that are casing all this tyranny today. To have any understanding of the mahem today, you need to look at the shareholders in every company and it will be as clear as day.

    3
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