Welcome to Finance and Fury, The Furious Friday Edition.

Today – continue talking about wars – the banker’s wars – this time on us and financial markets–

  1. Gone through how bankers fund wars, central banks carry out monetary policy that leads to Hot wars
  2. Start a miniseries – How To Crush A Bankers’ Dictatorship – likely be three eps over next Fridays – lots to unpack – Look at central banks – London, German and US connection – A Lesson From 1918, 1929, 1933 – look at how to break the trend –


To start this

– the question of why often comes up – why would bankers influence politics, crash economies, control the economy and start wars 

  1. Well, hear why from the horse’s mouth – Lord Montagu Norman, Governor of The Bank Of England, addressing the United States Bankers’ Association, NYC 1924- Quote: “Capital must protect itself in every possible way, both by combination and legislation. Debts must be collected, mortgages foreclosed as rapidly as possible. When, through the process of law, the common people lose their homes, they will become more docile and more easily governed through the strong arm of the government applied by a central power of wealth under leading financiers. These truths are well known among our principal men, who are now engaged in forming an imperialism to govern the world. By dividing the voter through the political party system, we can get them to expend their energies in fighting for questions of no importance.”
  2. Lord Montagu Norman was Governor of the Bank of England from 1916 to 1944. During this period, he participated in the central bank conferences which set up the Crash of 1929 and a worldwide depression.
  3. The quotation by Norman is a shorter version of the Bankers’ Manifesto of 1892: This adds a bit of additional context – Read another passage – “People without homes will not quarrel with their leaders. History repeats itself in regular cycles. This truth is well known among our principal men who are engaged in forming an imperialism of the world. While they are doing this, the people must be kept in a state of political antagonism. The question of tariff reform must be urged through the organization known as the Democratic Party, and the question of protection with the reciprocity must be forced to view through the Republican Party. By thus dividing voters, we can get them to expend their energies in fighting over questions of no importance to us, except as teachers to the common herd. Thus, by discrete action, we can secure all that has been so generously planned and successfully accomplished.”
  4. Why they do this – to retain control and to distract
    1. Only a few of them – lots of us – in reality – their positions are very fragile – while they have a lot of control – they have seen in the past what a pissed off population can do to them
    2. If you spend all your time fighting between left v right, men v woman, black v white – too busy distracted on newly created constructs
  5. Example – Germany population rising post WW1 – and how they were desperate to find a Fuhrer


First – What created the second world war?

– conditions left after the first – all done at the treaty of Versailles

  1. Versailles and the Destruction of Germany – Britain had been the leading hand behind the orchestration of WWI and the destruction Germany – Germans knew it
    1. Kaiser Wilhelm realised this too late when he said: the world will be engulfed in the most terrible of wars, the ultimate aim of which is the ruin of Germany. England, France, and Russia have conspired for our annihilation… that is the naked truth of the situation which was slowly but surely created by Edward VII”
    2. Who was his uncle – Nicholas II of Russia and George V who took over in 1910 were all first cousins
  2. Britain also organized the reparations conference in France – imposed impossible debt repayments upon Germany and created the League of Nations
    1. Lloyd George (politician) led the British delegation alongside his assistant Lord Lothian (secretary to the PM), Leo Amery, Lord Robert Cecil, and Lord John Maynard Keynes – all of these figures were members of the Round Table Movement that took full control of Britain by ousting PM Asquith in 1916
  3. After the 1918 Armistice – Treaty of Versailles saw to the dismantling of Germany’s army and navy
    1. Forced to pay the impossible sum of 132 billion gold marks, give up territories representing 15% of arable land, 10% of its population, 12% of its livestock, 74% of its iron ore, 63% of its zinc production, and 26% of its coal. Germany also had to give up 8000 locomotives, 225 000 railcars and all of its colonies across Africa, South America, etc.
    2. People often forget that those 10% of Germans were ruled by Polish, French and other nations – who were not kind to them – attacked and killed regularly
    3. Germany gave up half of its gold supply and still barely a dent was made in the debt payments
      1. In June 1920 – Bankers made the decision to use the printing press. Rather than the “miracle cure” which monetarists promised = resulted in an asymptotic devaluation of the currency into hyperinflation
      2. June 1922, 300 marks exchanged $1 US and in November 1923, it took 42 trillion marks to get $1 US
        1. 1Kg of Bread sold for $428 billion marks in 1923
      3. Further Results – industrial output fell by 50%, unemployment rose to over 30% – food intake reduced by over half of pre-war levels –
      4. Then to make it worse – a form of shorting the currency occurred by the bankers – making the situation worse = hyperinflationary blowout of Germany resulted in total un-governability of the state – Remember – Central Banking authorities did this – not the German people – who had no say
      5. Population under control of the Weimar republic at this time – imposed from 1918 – which was very ineffective – ended in 1933 with the Nationalsozialistische Deutsche Arbeiterpartei – Nazi Party
    4. The original solution was from the Wall Streets “Dawes Plan” – installed the London-trained banker by the name of Hjalmar Schacht.
      1. First introduced as Currency Commissioner in November 1923 and soon President of the Reichsbank
      2. Schacht’s first act was to visit Bank of England’s governor Montagu Norman in London
      3. Schacht was provided a blueprint for proceeding with Germany’s restructuring – Policy given from BoE Governor.
          1. Policy-create new currency called the “rentenmark” at a fixed value exchanging 1 trillion reichsmarks for 1 new rentenmark
          2. The Reichsmark was the currency in Germany from 1924 until 20 June 1948
      4. But hidden in the fine print allowed the germans to be robbed again – new currency would operate under “new rules” requiring austerity measures – i.e. Mass privatizations from Anglo-American companies purchasing state enterprises
        1. Industrial interests – IG Farben, Thyssen
        2. Mining and resources – Standard Oil
        3. Finances – Union Banking, Brown Brothers Harriman, JP Morgan
        4. Under the supervision of John Foster Dulles, Montagu Norman, Averill Harriman
    5. Ask yourself – what would you do if you were in that position? Almost starving to death again after almost dying by a bullet or losing your home, being left on the street, or sharing 1 room (studio) between 6 people, or worse, starving to death? All due to the games of some monarchs and central bankers?
    6. In Germany – civil unrest began to boil over – the London-Wall Street bankers couldn’t control


England wasn’t in great shape either

  1. Well before American entered WW1 – enormous amounts of money lent from American banks to England to purchase weapons – from American manufacturers – racked up a big debt – once the war was over – debts needed to be repaid
    1. But English economy was in ruins – bombed, broke, killed or mentally scared millions of men – no longer working –
    2. Also – borrowed money used to buy weapons – not increase economic output domestically
    3. Essentially no way for England to repay its enormous war-debts – again, bankers are smart so made them owe the debts in USD
    4. Bankers knew that England had greatly increased its money supply as well without increasing its productive capacity – England also printed funds to buy weapons –
    5. Result = pound plummeted in value – Start of 1920 – pound dropped to a low of $3.18. – pre-war $4.87
  2. At this time – Benjamin Strong – Governor of the Federal Reserve Bank of New York for 14 years until his death
  3. What we have here is that Montagu Norman (BoE), Hjalmar Schacht (who went on to run the BIS) and Strong all good friends
    1. Strong and his counterpart at the Bank of England -Montagu Norman –conspired to return the pound to its pre-war parity with the dollar. The Politics of Money by Brian Johnson – Quote “Strong and Norman, intimate friends, spent their holidays together at Bar Harbour and in the South of France.”
    2. How – Bank of England and FED leaders came up with a plan – Impossible to make pound stronger – easier to make the dollar weaker – reasoned that if the dollar was made weaker, the pound would become stronger as a result – teamed up
  4. Proof – May 1924 – Strong said he was pursuing a “readjustment” to benefit England – “readjustment” was to pursue a policy of inflation in the US – keeping Britain from having to raise interest rates
    1. Strong in his own words – “the burden of this readjustment must fall more largely upon us than upon them (Great Britain). It will be difficult politically and socially for the British Government and the Bank of England to face a price liquidation in England… in face of the fact that their trade is poor and they have over a million unemployed people receiving government aid.” 
    2. Confirmed in October of 1924 – Norman asked Strong to continue with this policy of low interest rates, or ‘easy money.’
  5. Strong/FED implemented easy money policies from 1925-28 – based on agreement with Norman to keep US interest rates below those of London
    1. However, even all this was not enough to keep England solvent. As a result of her massive war debts – denominated as they were in dollars, not pounds – England’s position was hopeless. This hopeless position was further exacerbated by a national strike in May 1926. The strike began in Britain’s most important industry – coal – There were socialist/Communist/Fascist uprisings in England at this time
  6. Anyway – Strong withheld increasing interest rates for the US was too late – today we call this easy money policy
    1. Encouraged the surging American boom of the late 1920s – massively increased speculation
  7. This is How the 1929 Crash was Manufactured – low cost of money creating speculation, increased leverage, and financial deregulation
    1. 1923 – President Coolidge and financier Andrew Mellon (Treasury Secretary) de-regulated the banks
    2. Introduced a Broker loans scheme (Margin loans) – speculators allowed to borrow 90% on their shares
    3. investments into the real economy were halted during the 1920s speculation was the norm
    4. 1925 broker loans totalled $1.5 billion, 1926 = $2.6 billion, 1926 = $5.7 billion – stock market was overvalued fourfold
  8. When the bubble was sufficiently inflated, a moment was decided upon to coordinate a mass “calling in” of the broker loans- no one could pay them resulting in a collapse of the markets
    1. Then banks like JP Morgan had already sold out before the crash – then bought up the physical assets for cents on the dollar
    2. Prescott Bush of Brown Brothers Harriman (bank involved with German takeover) made his fortune in this manner
      1. He then went onto bailout a bankrupt Nazi party in 1932
  9. Market crash unleashed four years of hell in America, EU, Australia- leading to the great depression


Recently – The media has started reporting of “financial Armageddon” potentials

– I have as well – but their solution is more of what has created this environment – global hegemonic synthetic currency – the SDR – which will replace the collapsing US dollar under a new system of “green finance’’

  1. Reporting of the media can create fear – I apologise if I have contributed to this – I want to help people not get caught by surprise – and to provide actual reasoning and some individual solutions –
    1. Media reporting is designed for a Trauma-based society control – create an event that causes trauma – people cant rationally think through the solutions shoved in their face – we all need to believe in something –
  2. But it shouldn’t be ignored that financial markets are sitting on the largest financial bubble in human history
    1. Very reminiscent of the 1929 bubble that was triggered on black Friday in the USA which unleashed a great depression
  3. Currently, Western economies are not in too a dissimilar position as post WW1 – in the 1927 or 1928 period
    1. Most Governments have unpayable levels of debt – similar to the Versailles debts on Germany
    2. 10 years of easy money policies (low rates) unleashed unbounded speculation – similar to the “roaring 1920s”
    3. Populations suffering levels of depressions, PTSD and disenfranchisement – vastly different reasons – some from watching their friends decompose in no-man’s land for months, some from overuse of social media or climate change fears
    4. Also – the solutions proposed o solve the situation is put forward by the same groups who created the issues – identical to what the world faced in 1933 as “central bankers” became the solution for the world depression.
    5. Start to look at next next episode – Look at the great depression – and the Bankers plan to overthrow FDR and put in their own leader


Thanks for listening! If you want to get in contact you can do so here: http://financeandfury.com.au/contact/ 


The rules of money – Building a solid financial foundation!

Welcome to Finance and Fury. In doing last week’s episode – on paying yourself first and allocating your financial resources – I wanted to go through other important rules in the book that inspired that episode – The Richest Man in Babylon - as there are some classic...

What is an economic moat and how can this help an investment portfolio?

Welcome to Finance and Fury. In this episode, we will be looking at investing using a moat. Moats are an effective tool for defence historically – you would put one up around a fortified structures – such as a castle or town – can be filled with water or not, many...

How well are Australian Universities functioning and is it even worth going?

Welcome to Finance and Fury, the Say What Wednesday Edition Today’s question comes from Octav Hi Louie, My question is how the universities are functioning in Australia, especially the one that are governmental managed. How do they make the advertisement for casual...

Furious Fridays: Are low interest rates actually a good thing?

Furious Friday Are low interest rates actually a good thing? For the last few weeks we have been talking a lot about the economy; the Reserve Bank, printing money, and now we will be finishing off by talking about the final effect of this – Interest Rates. Today, we...

Are superannuation funds in danger?

Welcome to Finance and Fury, the Furious Friday edition. Today – want to run through what is happening within the industry superannuation environment – not looking good With the market crash – cracks in the financial system are starting to appear – with almost no...

The skinny on spare change investment apps and building wealth when you’re earning $25,000 or less a year.

Say What Wednesday The skinny on spare change investment apps and building wealth when you’re earning $25,000 or less a year. Welcome to Say What Wednesdays – Where we answer your personal finance questions each week. Two questions this week from Chris: No 1 what are...

Is this another recession that we have to have?

Welcome to Finance and Fury. Are we in for another recession that we had to have? With Governments increasing interest rates to combat inflation, are we on schedule to repeat 1990s This term dates back to November of 1990 under which Paul Keating made a remark in...

Say ‘What’ Wednesdays: Is it time to jump ship? Should you sell your bank shares?

Say 'What' Wednesday Is it time to jump ship? Should you sell your bank shares? Today’s question comes from Jake. He asks “should I sell my bank shares, given the recent fall out from the royal banking commission?” IMPORTANT: This episode comes with a general advice...

Say What Wednesdays: The good and bad of Ethical Investing

Welcome to Finance & Fury, the ‘Say What Wednesday’ edition, where every week we tackle questions from you guys. This week the question comes from Jason; “My question is about investing with an Environmental, Social and Governance (ESG) / Ethical investment focus....

What are TraCRs and how do they compare to buying international shares directly?

Welcome to Finance and Fury, The Say What Wednesday Edition Today's question comes from Chris What are your thoughts on TraCRs? I can’t recall if you’ve spoken about them before on your past episodes, if you have which one was that and I’ll go back and listen? How...

Pin It on Pinterest

Share This