Welcome to Finance and Fury, The Furious Friday Edition. 

Today is an interesting episode – Central Banks and Wars – Often wouldn’t think of these two together –

What is the purpose of a central bank? Financial stability, a lender of last resort, to smooth out the cycle of boom and bust? Not their original purpose –

  1. Why did nations first start central banks? To finance the material needs of the nation-state in times of war
    1. Central banks ramped up the funding capacity of wars – the long-term costs could be covered
  2. Britain had shown that its central bank chartered in the 1690s was necessary to finance a crown bent on war
  3. France too, under the revolutionaries and Napoleon, had set up their institution to ease the way for aggressive war credits.
    1. Central banks came into force early – Older nations like Germany – 1872, France – 1800, England – 1690 – ramped up after 1900s many more coming online
      1. USA – Federal reserve 1913 in USA, Swiss – Swiss National Bank 1906, Russian – 1922 – The Gosbank

 

First – In society, we carry a conviction that a central bank must be separated from Governments

– Removed the chances of moral hazard –

  1. The reasoning is that you don’t want a Government given the ability to have an open printing press when a populations demands are endless – why greater levels of socialist spending can and has bankrupted countries
  2. But what difference does it make when Governments are the owner of most Central Banks?
    1. Leaders of Governments have control who works there –
    2. Reasoning is clear – can a Government manage its affairs in the country without having control of its own money? Not well – Society would still function – but Governments would lose the ability to tax and then exist – If we were allowed to use anything for trade, no tax would be paid – so it is illegal to conduct any business in another currency, unless you do BTC but still pay tax when converted into AUS/currency – the control over the currency is the catch all
  3. But some Central Banks are privately owned – not by Governments – nobody really knows who owns them – Done big series on FED but this, as well as Italy – have private ownership –
    1. To be clear – In a lot of countries Governments and central banks are separated by decree, and are either owned by the Governments themselves
    2. Or by unknown private group of companies/groups/individuals
  4. He who controls the money controls a nation – Structure of the FED – shares of the New York FED, the primary bank, are owned by the regional FED banks
    1. Nobody is permitted to know the true beneficial owners of the regional FEDs
    2. The FED is free of necessity to publish accounts or to reveal the many trillions in profits it has collected from the public purse
  5. Going back to the founding of the FED does give clues to who the owners are –
  6. First- it was created by illegal legislation in 1913 – giving full control of the US money supply and credit = entire economy is a violation of the very Constitution of the United States
    1. Made The US government cannot subservient to a group of private bankers – if the government needs money – has to borrow from the FED and repay it with interest
    2. Ultimate beneficial owners of the US Federal Reserve Central Banks have been reliably documented as follows:
      1. Rothschild Banks of London and Berlin, Warburg Banks of Hamburg and Amsterdam, Lazard Brothers of Paris, Kuhn Loeb Bank of New York, Israel Moses Seif Banks of Italy, Goldman Sachs and the Chase Manhattan Bank.
    3. With Private Central Banks – impossible to have a free market – or with any Central Bank controlling the price of money
  7. It was a group of bankers at Jekyll Island who concocted the plan for the FED system – passed by Congress while most members were away on Christmas vacation – Signed in by Woodrow Wilson – he turned over control of both the US currency and the economy to banking interests – an act which even Wilson recognised:
    1. “I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation is controlled by its system of credit. The growth of the nation and all our activities are in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated Governments in the civilized world… by the opinion and duress of a small group of dominant men.”
    2. Others like Congressman Charles Lindbergh“When the President signs this Bill, the invisible government of the monetary power will be legalized. The greatest crime of the ages is perpetrated by this banking and currency bill”
  8. But this wasn’t really anything new – just on a more massive scale –
    1. FDR – “The real truth … is, as you and I know, that a financial element in the larger centers has owned the Government ever since the days of Andrew Jackson”
    2. Rothschilds and other European bankers listed previously been very involved in the US financial system since the formation of the Republic – and aligns up with each onset of economic turmoil and wars – run through turmoils in another ep – But back to war –

A lot of these are really summarised for time

– But please do research further if you are interested – lot of information available – Formation of the US republic – Irony is that America fought their war of independence due to a Central Bank – Bank of England – which just a over a hundred years before in 1776

  1. The United States fought the American Revolution primarily over King George III’s Currency Act
    1. Forced the colonists to conduct their business only using printed bank notes borrowed from the Bank of England at interest – Interest is another form of taxation when it is on trade and goods produced – other reasons like the Naturalisation Act and restriction on inland migration – either way, 13 independent colonies teamed up and took on the English Empire – conducting a conspiracy in the process they would be killed for if caught
  2. After the revolution – the new United States adopted a radically different economic system in which the government issued its own value-based money
    1. Stopped private banks like the Bank of England (only went public in 1998) from siphoning off the wealth of the people through interest-bearing bank notes – bankers didn’t like that and had the US in their sights
  3. First incarnation of the FED in 1791 – Just one year after Mayer Rothschild stated “Let me issue and control a nation’s money and I care not who makes the laws” called the Bank of the United States – privately owned
    1. Done largely through the efforts of the Rothschild’s chief US supporter, Alexander Hamilton
    2. Was supposed to do the opposite of financing war – extinguish the debt from the war already fought then end
    3. Was only passed with a 20-year charter to expire in 1811 – and with public sentiment against this bank the charter was going to be revoked – so a crisis was needed to justify the charter being renewed
  4. Solution – Britain and EU bankers funded and supplied arms to American Indians who raided American settlers on the frontier, hindering American expansion and provoking resentment.
    1. Started the war of 1812 – The government found it impossible to pay for the war through current resources, in the emergency printing money that bore interest. After that war ended in 1815 – the nation in a climate of fear and economic hardship, the Rothschilds managed to have the bank’s charter renewed for another 20 years – But in 1836 not renewed
    2. Again, annoyed the bankers

 

American Civil War – Reading on google the leading cause of the war was the Abolitionist Movement – which is incredibly noble cause

  1. But reading firsthand accounts from back in 1860 it seems like this was the issue used for War – similar to WMDs and Iraq
    1. Decent amount of evidence that the severe divisions leading to the American civil war were deliberately inflicted upon the US by these same bankers – plan was “to exploit the question of slavery and thus to dig an abyss between the two parts of the Republic” – which already were at each other’s throats politically after Lincolns election
    2. Germany’s Chancellor Otto Von Bismarck claimed the European bankers were responsible for the American Civil War, stating “The division of the United States was decided by the high financial powers of Europe”,
    3. Jan van Helsing wrote “The reasons leading to this civil war were almost completely due to the Rothschild agents”, one of whom was George Bickly who persuaded the Confederate States of the advantages of secession from the Union
      1. In a rational world – slavery would have been abolished without a war – the tide was turning – England – Slavery Abolition Act in 1833 abolished slavery –
      2. But 620,000 US citizens died – 2% of the population – the equivalent of 520k Aus dying in a war
  2. During, prior, and after the Civil War (1861-65), the U.S. decided to try going without a central bank – Thanks to Lincoln’s greenbacks – they did okay – so he had to be killed

 

Back to the FED – Tensions were rising in Europe in the 1890s –

Everyone knew that a war was going to break out between major powers at some point –

  1. Bankers wanted a central bank back in USA – hence the FED – The difference now was that there was no expiration date unlike the previous 20 year charters – Allan H. Meltzer, the official Fed historian stated that the founders of the Fed, such as they were, did not intend to create “a permanent institution” – they simply forgot to put in a used by date
  2. As opposed to other Central banks later created – the FED is still private –
    1. It be any accident that the U.S., very contrary to its previous history, has been oft at war since 1917? World War II, Korea, Vietnam (1959-1975), Gulf, Afghanistan (2001-), Iraq, Yemen, and Syria – probably missing a few

  1. Comparing the frequency of war – Major Wars since 1900 – Most would think WW1, WW2, Korean War, Vietnam, Iraq, Afghanistan, maybe a handful more –
    1. With the state of the News Cycle they go by in a section and forgotten about – especially if your nation is the invading force or should have no business intervening
  2. Time of wars – compare two periods – Pre-FED to Post-FED – wars started between periods
    1. 1900 to 1916 – the capacity of spending and technology were different
      1. Capacity much smaller – technology very similar – each had their own benefits – Germans had most of the best equipment
      2. Tiger II tanks were far better than Americans – it was just the superiority in numbers the industrial scale of US production had – one Tiger could take on a much larger bunch of tanks
      3. How that changed – now the US is the largest military empire known to man – far surpassed the Roman Empire1900 to 1916 – the capacity of spending and technology were different
    2. 2003 to now – average time of war went up by a factor of 3
      1. 39 wars still ongoing so that average is likely to rise further – as expansion of Central banks gives unlimited funding for wars

 

Summary –

US military empire started in 1913 – funding capacity for war and changed from domestic conflicts to global

800 military bases in more than 70 countries

None of this would have been possible without printing press of Fed – which is a private group owned by bankers

Next Ep – Modern Financial wars – Examples of funding both sides along with using Central and Private Banks to destroy other nations economies

 

Thank you for listening, if you want to get in contact you can here: https://financeandfury.com.au/contact/

 

Say What Wednesdays: Housing market history and lowering property prices sustainably in the future

Say What Wednesdays Housing market history and lowering property prices sustainably in the future Welcome to Say What Wednesday! Today’s question is about Labor’s plans to help with housing affordability. To answer that properly, I will spend today going through some...

Financial crash proof your share investments

Episode 11 Financial crash proof your share investments Welcome to Finance and Fury! Financial Crash proof your Share investments There is no way to control the rise and fall of investments but focusing on what you can control makes all the difference! Behaviours lead...

Say What Wednesdays: Where to start when you don’t know where to start; financial literacy in an age of information overload

Say What Wednesdays Where to start when you don't know where to start; financial literacy in an age of information overload Welcome to Say What Wednesday - Today’s episode is a special one! Plus there’s a bit of an announcement at the end. This all started with a...

What is the First Home Loan Deposit Scheme? And how to use it?

Welcome to Finance and Fury, the Say What Wednesday Edition  This week’s question comes from Adam Hey Louis, learning lots from your podcast its been good value. My question is now the coalition are remaining in power i want to take advantage of the proposed first...

Should you reduce debt or use surplus cash to build wealth? Negotiating with future-you

Say What Wednesday Should you reduce debt or use surplus cash to build wealth? Negotiating with future-you Welcome to Finance and Fury, “Say what Wednesday” Where we answer questions about the world of personal finance. This week, the question isn’t from a listener...

We are entering new economic and investment territory – An introduction to QE, what does it look like and what does it mean for investments?

Welcome to Finance and Fury We live through transformational times – new environment for finance and investing   We are fast reaching the limits of monetary printing - markets are still trying to work out how to price that in Past model – print money Get GDP growth...

Say What Wednesday: The ups and downs of Bitcoin – currency, investment opportunity, both… or neither?

Say What Wednesday The ups and downs of Bitcoin - currency, investment opportunity, both... or neither? Today’s question comes from Richie, who asks, “Have you been following the Bitcoin ETF at all? If so, are you able to do an episode on this and if it is worth...

What not to invest in!

Hi everyone and welcome to Finance and Fury. If you missed last Monday’s episode on bank bail in laws, you might want to go back and catch up as this week’s episode follows on from that one. Today we’ll look at what to avoid holding as investment in the future, based...

How does the share market’s behaviour changes with investor theory?

Welcome to Finance and Fury, The Furious Friday edition Today We will go through how the share market changes with economic theory, particularly the theory of Milton Friedman in regards to shareholder value and certain volatility The share market behaviour changes as...

Is there any proof that having more millionaires per person is better for the poor?

Welcome to Finance and Fury, The Say What Wednesday edition. Where every week we answer your questions. Question from Anton - In your recent podcast you mention countries that have more millionaires and billionaires have more gdp and a higher quality of life. I am...

Pin It on Pinterest

Share This