From a small deserted island economy to today’s complex world order takes years of mismanagement and dishonesty. For our civilization, it started in Babylon. Babylonian Emperor and Warlord, Nebuchadnezzar understood the power of banking and he and his fellow-dictators discovered that war was the best way to gain and maintain control over a nation’s people and the most profitable way to make money.
War as a technology is highly efficient, because it totally uses up most of the goods (munitions, armaments) and services (men and women in military forces) it involves. With many technologies for example, the manufacture of goods, machinery and tools are not completely used up. They merely depreciate over time. War materiel is destroyed, requiring a constant re-supply, necessitating a “military industrial complex” to furnish the objects and personnel involved.
Beginning with old Nebu (perhaps even before) the ruler or rulers of a state decreed what the official policy would be as to money and finances. In most centuries and in most countries, this has meant that only the rulers of a state are allowed to issue money and everyone in that state–and economically related states–must use the money created.
The power to issue currency and coins and to set a nation’s fiscal policy resides either in a monarch, the elected officials of a state, or a private group of financiers. In 1666, the profligate King Charles II and a corrupt Parliament sold the British fiscal powers to the East India Company (a group of financiers), pretty much in the same way as President Woodrow Wilson gave the fiscal control away to the privately operated Federal Reserve in 1913. The East India Company established the policy that goods could only be purchased by the colonies, including America, by goods of exchange (tobacco, timber, fish, furs, rum) or coins.
As the American colonies moved out of barter into a more complex economy, they had a dire need for currency, “bills of exchange.” The colonists had very little in the way of coins, since most of their exports were traded for goods, not coins. So with the encouragement of men such as Benjamin Franklin, the colonies began to issue their own currencies to facilitate domestic and foreign trade.
The importance of American domestic currencies is not often emphasized in American history books and we are not made aware that one of the major reasons for the revolt of the American colonists against the British is that the English Parliament in 1751 and 1763 made it illegal for the American colonies to issue currency. Had Americans accepted this British mandate, domestic trade would have ground to a halt and the colonists reduced to barter, a very inefficient method of exchange.
After the United States was established, a national bank was chartered in 1791: the Bank of the United States. Only about twenty percent of the national bank was actually owned by the government, the rest by foreign investors. It soon became clear that the Bank was being operated for the benefit of foreign investors, so Congress did not renew the Bank‚Äôs 20-year charter in 1811.
A second national bank was given a federal charter in 1816, but like the first one, it too was largely controlled by foreign investors through such front men as John Jacob Astor, Stephen Girard, and David Parish, a New York agent for the Vienna branch of the Rothschild money interest. This second national bank was controlled by Nicholas Biddle who administered it according to the aims of its foreign owners and contrary to the welfare of Americans.
In 1836, President Andrew Jackson vetoed the bill, which would have renewed the national bank’s charter, which expired that year. In his veto message, President Jackson said:¬† “The bold efforts the present bank has made to control the government, the distress it has wantonly caused, are but premonitions of the fate which awaits the American people should they be deluded into a perpetuation of this institution or the establishment of another like it.”
Americans were well rid of the foreign-dominated second national bank. But they were left in the vulnerable position of having no national bank to further their interests for the next 80 years, a time period which the foreign financiers, especially such moneyed groups as the Rothschilds, saw their opportunity and soon sent their agents to America to begin setting up state banks.
The Rothschild’s primary agent in America was August Belmont, who established a large bank in New York City, but also a large number of state banks in the south. The Rotshchilds and other European financiers loaned money to state banks at high rates of interest and controlled loan decisions.
By the time the 20th century came around they had virtually all the power and means to control the politics.
Many of these state banks were also supported by state bonds. The state of Mississippi, for example, sold $5 million in bonds with which to subscribe a third of the $15 million capital of the Union Bank. The promoters of the Union Bank made ill-advised loans and within a short time the bank failed. The state officials in Mississippi realized that the foreign financiers had hoped to reap windfall profits and had been largely responsible for the failure of the Union Bank, so these officials refused to repay the money owed the foreign vultures.
The European financiers bought up “repudiated” southern state bonds and then began to use their financial power to have the United States federal government compel the southern states to pay off the disputed claims. The Rothschilds and the other foreign financier groups also thought they might be able to use their money power to force the U.S. federal government to assume the debts of the southern state banks as federal obligations. At its inception, the newly formed United States had assumed the debts of the colonies; so the foreign vultures thought they might be able to force the federal government to pay off the southern states’ debts. The issue of “states’ rights” versus a “strong central authority” became a national crisis point and the American civil war was the result.
When reviewing the technology of war above, we saw that this is a very profitable stratagem for rulers. The Rothschilds and other European financiers had exacerbated the discord and hostility between the North and the South. Knowing full well that war was their best means of reaping huge profits, these vultures did everything in their power to instigate an American civil war. They worked both sides of the street, as usual.
The Union commissioned Jay Cooke to act as selling agent for its bond issues and Cooke arranged with August Belmont, the New York agent of the Rothschilds, to sell Union bonds in Europe. In 1861 the Confederacy sent James M. Mason to England and John Slidell to France to borrow money. Slidell was a nephew of Belmont’s wife. In Paris, John Slidell entered into negotiations with the Erlanger Company, confidential representatives of the Rothschilds. Slidell’s daughter married Erlanger’s son. Even though most investors in confederate bonds lost their shirt, the Erlangers reaped huge profits.
The American Civil War cost the Union about $3.2 billion and the Confederacy close to $2 billion, all money loaned on interest. August Belmont, the Democratic National Chairman, sabotaged the Democratic presidential candidate, Horatio Seymour, through derogatory statements made in his New York World newspaper, assuring the election of the Republican candidate, General Ulysses S. Grant.
The so-called Credit Strengthening Act of March 18, 1869 was passed immediately upon the assembling of the new Congress elected in the 1868 election. It was the first act passed by that body and signed by the new President Grant. The passage of that Act was equivalent to the payment to the Rothschilds and their banker satellites in America and abroad of at least $275 million over and above the amount they otherwise would have received in the form of interest and principal for the bonds they owned or controlled.
At least since the American presidential election of 1868, the financiers who rule the USA have made sure that they have handpicked presidential candidates in both the Democratic and Republican parties. Whichever party wins, they have their puppet in power.
“The structure of financial controls created by the tycoons of ‘Big Banking’ and “Big Business’ in the period 1880-1993 was of extraordinary complexity, one business fief being built on another, both being allied with semi-independent associates, the whole rearing upward into two pinnacles of economic and financial power, of which one, centered in New York, was headed by J. P. Morgan and Company, and the other in Ohio, was headed by the Rockefeller family. When these two cooperated, as they generally did, they could influence the economic life of the country to a very large degree and could almost control its political life, at least on the Federal level.”
After almost 80 years of Wild West Banking and building absolute control points in the financial systems, the bankers elite designed a Federal Reserve Act that on December 23, 1913 was signed into Law by President Woodrow Wilson, effectively creating the Federal Reserve, a private banking organization that controls the fiscal policies of the United States.
Noted economist John Maynard Keynes said in 1920: ‚ÄúBy a continuous process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens.¬† By this method, they not only confiscate, but they confiscate arbitrarily; and while the process impoverishes many, it actually enriches some … The process engages all of the hidden forces of economic law on the side of destruction, and does it in a manner that not one man in a million can diagnose.‚Äù
Sadly, that is very true.¬† Keynes is one of the two original architects of our present monetary system.¬† Most citizens will never know what hit them as the current monetary and economic crisis plays out.¬† There will be plenty of finger pointing and scapegoating in years to come, but only the most discerning citizens will understand exactly when and where we went wrong.
As people of the United States of America we were never supposed to understand.
Another famous quote is from Thomas Jefferson: ‚ÄùBanking establishments are more dangerous than standing armies.‚Äù¬† He, and a majority of our Founding Fathers knew well the dangers of submitting the Republic to ‚Äúcentral bankers.‚Äù¬† Still, Jefferson could have never conceived what a witches‚Äô brew our current banking hierarchy has brought upon us.
1913 was an ominous year.¬† That‚Äôs when both the Federal Reserve and the income tax laws were thrust upon the U.S.¬† This dynamic duo has wrought nearly a century of damage upon us and the rest of the world.¬† They are nothing more than financial predators.
Our current status of debts, desperation, dishonest money, bailouts, extreme institutional greed, and weird finance took root in 1913.¬† In hindsight, the present quagmire is the inevitable consequence of straying from the natural disciplines of honest money, but it‚Äôs all we‚Äôve known in our collective lifetimes. The US government has yielded control of both money creation and economy to elitist insiders with no consideration for anything but themselves.
In closing, and I’m not saying this lightly, nor do I pretend to know it all or project my self as an alarmist, but
The global monetary system, with the U.S. dollar as its ‚Äúreserve currency,‚Äù is crumbling.¬† The dollar has been abused so much by this Elite, that the rest of the world is no longer oblivious to its fundamentals.¬† A major form of change is on the horizon.
What we now recognize as ‚Äúmoney‚Äù will enter the history books, even if only because it has been tainted to the point where it has lost the confidence it once had.¬† It‚Äôs reasonable to expect the coming monetary order to, once again, be backed by tangible substances.¬† Gold is the frontrunner and the U.S. will go along ‚Ä¶ kicking and screaming, threatening and bullying.
Until then we are in uncharted territory.
In the context of this foregoing you may want to spend some extra time understanding my fellow contributor The Market Man’s take on silver today in the story The “Silver Bullet”. It could give you the opportunity to make some real money.