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But he was a contemporary of Jesus' brother Jacob and was aware of the events surrounding his death.
See I can correct poor spelling too!
But the passage in Antiquities XX.9.1 clearly defines the Jesus who Josephus means.
The text reads:
"AND now Caesar, upon hearing the death of Festus, sent Albinus into Judea, as procurator. But the king deprived Joseph of the high priesthood, and bestowed the succession to that dignity on the son of Ananus, who was also himself called Ananus. Now the report goes that this eldest Ananus proved a most fortunate man; for he had five sons who had all performed the office of a high priest to God, and who had himself enjoyed that dignity a long time formerly, which had never happened to any other of our high priests. But this younger Ananus, who, as we have told you already, took the high priesthood, was a bold man in his temper, and very insolent; he was also of the sect of the Sadducees, (23) who are very rigid in judging offenders, above all the rest of the Jews, as we have already observed; when, therefore, Ananus was of this disposition, he thought he had now a proper opportunity [to exercise his authority]. Festus was now dead, and Albinus was but upon the road; so he assembled the sanhedrim of judges, and brought before them the brother of Jesus, who was called Christ, whose name was James, and some others, [or, some of his companions]; and when he had formed an accusation against them as breakers of the law, he delivered them to be stoned: but as for those who seemed the most equitable of the citizens, and such as were the most uneasy at the breach of the laws, they disliked what was done; they also sent to the king [Agrippa], desiring him to send to Ananus that he should act so no more, for that what he had already done was not to be justified; nay, some of them went also to meet Albinus, as he was upon his journey from Alexandria, and informed him that it was not lawful for Ananus to assemble a sanhedrim without his consent. (24) Whereupon Albinus complied with what they said, and wrote in anger to Ananus, and threatened that he would bring him to punishment for what he had done; on which king Agrippa took the high priesthood from him, when he had ruled but three months, and made Jesus, the son of Damneus, high priest."
This reference to Jacob as the brother of Jesus fits in with Galatians 1:19. - But other of the apostles saw I none, save James the Lord's brother (ἔτερον δὲ τῶν ἀποστόλων οὐκ εϊδον εἰ μὴ Ἰάκωβον τὸν ἀδελφὸν τοῦ Κυρίου);
Tim the Atheist skeptic's comment on this passage in Josephus:
"The second reference to Jesus in Josephus - the one in Antiquities XX.9.1 - is much more problematic for the Jesus Mythers, since here the scholarly consensus that it is genuine is overwhelming. Mythicists display a remarkable virtuosity when it comes to piling up suppositions to make this reference in Josephus' account of the deposition of the high priest Hanan ben Hanan go away. They try various tactics, but most fall back on yet another manifestation of their stand-by argument whenever things get difficult for them: interpolation. They argue that the passage is authentic, but the part where Josephus says the James he is discussing is the brother of a Jesus "who was called Messiah" is a Christian interpolation. Therefore, they claim, the Jesus in question is the "Jesus, son of Damneus" mentioned a few lines later and not Jesus of Nazareth."
O'Neill continues.
The second flaw in Carrier's thesis is even more critical. His protégé Fitzgerald claims that Jesus the son of Damneus is "the Jesus who is actually mentioned in the passage, and fits the context" and Carrier makes the case for this being the Jesus who was the brother of the James executed by the high priest Hanan ben Hanan/"Ananus". If this was the case, Hanan executed this James and was therefore deposed by Herod and the Romans and was replaced by this James' own brother, "Jesus, son of Damenus". But it's very hard to reconcile this reading with what Josephus tells us happened next.
This is because Josephus goes on to detail how his deposition didn't dampen Hanan's enthusiasm for intrigues and how he cultivated the favour of the new Roman procurator Albinus and that of the high priest "by making them presents" (Antiquities XX.9.2). The problem here is that the "high priest" that Hanan is currying favour with via "presents" is none other than Jesus, son of Damneus. This means, according to Carrier's reading, the very man whose brother Hanan had just executed and who had replaced him in the priesthood has, a couple of sentences later, become friends with his brother's killer because he was given some gifts. This clearly makes zero sense.
"Carrier's contrived scenario requires a number of suppositions to be true for his removal of the key phrase to work and for his alternative reading to be correct. Amongst them is the requirement for Josephus to have originally referred to James by reference to his brother in one sentence and then to refer to Jesus son of Damneus by reference to their (supposed) father in the next. This is contrary to the very careful and consistent way Josephus introduces and differentiates between members of the same family thoughout his work - and yes, I've re-read the whole of Antiquties with this question in mind to check on this. However you cut it, Carrier's thesis does not stand up to Occam's Razor and, like all his work, it's an ad hoc way to get to an ideological objective: removing a key piece of evidence for the existence of a historical Jesus".
http://armariummagnus.blogspot.com.au/2013/12/the-jesus-myth-theory-reponse-to-david.html
The problem with the mention of Jesus in Josephus is that it's an interpolation inserted by a Christian copyist in the 3rd century. Josephus was a Hellenized Jew who had no interest in attesting to Jesus as 'the Christ' or a worker of miracles or teacher of men. The effusiveness of the praise was suspicious in it's own right. If Josephus believed Jesus was 'the Christ' it was odd that he would not also be a convert.
The mention of Josephus' lack of belief in Jesus in Origen (3rd century) is further proof of the interpolation.