Archive for the ‘Predict the Future, Know Your History’ Category

So, what is ‘central banking’? What does it have to do with us? Also, why isn’t united capitalized? I’ll start with the grammatical question. When you are talking about the United States of America, you are talking about the union in its entirety as a single entity. However, unbeknownst to most people, it is not a single entity. It is a union of several entities known as sovereign States(nations). So, the united States is referencing the individual States as a unified force or group, a union.

For me, personally, the entity known as the United States of America no longer exists in a legitimate manner as created by the Constitution. It is a corporation, a business that seeks nothing more than to profit its shareholders. Of course, we’ll talk about this, the business of America and its shareholders, at another point. So, the assuming the U.S.A. is a faux entity acting in the stead of a de jure government, I am not talking about them. I am talking about us, our communities, our States, our union. Thus, the united(union of the) States of America.

So, what is central banking and what does it have to do with us? Central banking may sound like an efficient form of banking. A sort of banking system with which we can unify all banking activities, regulations, standards, etc. However, it has nothing to do with centralizing the banking system of an area, region, country, etc. It is a term used to describe a system of creating and distributing currency. Central banking is a system in which a bank, the central bank, lends currency to a nation thereby supplying the nation’s currency. This idea is not new and it is not something exclusively from ancient times. It was around before the Revolutionary War and we still use it today. However, we haven’t always had a central bank. So, time for some history.

Some may argue and refute this point to no small degree, why they would, I have no idea, but they will. The point being that the reason for the colonies cry for independence had less to do with taxation and more to do with their own power to issue currency based on their gold and silver reserves being stripped by Parliament who, by request of the Bank of England(who was owed a great deal by England) and the colonies were forced to pay taxes in gold and silver and currency was to be issued by the banks instead of by the governments of the colonies.

To support this point, we can look at the Constitution. In it it gives the power to print currency to Congress(a direct representation of the People as understood by the Constitution). It also gives Congress the power to tax within certain requirements and prohibitions. If our issue with taxes were the largest reason for the war, why allow for taxation at all?

Of course, this is a juvenile way to look at it, but there has always been far less controversy over taxation in this union than over the banks. Further, the fact that the fledgling republic(a land ruled by the law) created a lawful document laying the foundation for all other laws(the supreme law of the land) that specifically puts the power of issuance of currency in the hands of Congress(the people) rather than adopting a central bank as nearly every other “successful” nation had says that, at the least, central banking was something to be avoided by those who led the war and created the union we have today.That didn’t stop central banking from reaching our shores. Not once, not just twice but three times, now, we have had a central bank.

The First Central Bank: 1791, the First Bank of the United States was created after brokering a deal with the South that the national capitol would be moved to Potomac from New York. However, this ‘central bank’ was limited in comparison with today’s or even the central banks in other nations at the time. It produced no more than 20% of the currency used in the States and after its 20 year Charter expired and was not renewed by Congress. A charter is a document that legitimizes the creation of a corporation in some form(cities, universities, businesses, etc.) and has an expiration date at which time the issuing legislative body must determine whether to renew or not.

The Second Central Bank: Essentially no different than the first, The Second Bank of the United States expanded across the nation but met its end when Andrew Jackson vehemently refused to renew the charter. On his tombstone are the words, “I killed the bank.”

The Third Central Bank: The third central bank still exists today. It is important to understand that none of these banks, including the current incarnation, are government agencies or controlled. They are private banks with the purpose of creating profit for its shareholders. The Federal Reserve is considered to have been created out of a need to stabilize the economy and avert and avoid bank scares and market crashes through mathematical control of inflation. In 1913 a bill was introduced to Congress that took the power to print currency out of the hands of Congress and therefore accountable to the American People and gave it to a private bank that was owned and ran by the same banking elite that have controlled the central banks of Europe for generations, even back to the banks that the Colonies rallied against in 1776.

The Federal Reserve Act allowed for the creation of a central bank that would control the issuance of currency, interest rates, etc. The reasoning was, as mentioned above, to have a central bank that could avert economic and financial disasters by controlling finances, determining how much currency to create and by creating an ‘elastic’ currency also know as a ‘fiat’ currency which is a currency that has value not necessarily because it represents any real asset such as gold but because it is said to have value.

Interestingly, this system not only has failed to avert the market crashes that led to the Great Depression or the more recent Great ‘Recession’ that we have been experiencing for the last few years.

Alright, so what’s the point? Well, aside from the fact that this country was created in an attempt to avoid financial control by banks and the fact that we have twice allowed a central bank to die in this country at the end of their charters, the point is to know that our money is not created, owned or controlled by the government, even were it a de jure government. More than that, it is to know that the bills and coins you work so hard for are not backed by any thing of value. There is nothing to back it up. Initially, our currency was backed by gold and silver, tangible goods that could be used to barter for other goods and services in and of themselves. Objects that have inherent worth due to rarity, mobility, difficulty in obtaining, etc. Today, our currency is nothing but paper, a reproducible object that is not rare nor difficult to create. I am going to tangent for a moment before finishing this.

Imagine, if you will, this scenario:

In 1907, banking interests with ties to the newspapers make a public comment that two important banks are about to be bankrupt. In turn, investors and those with money in those banks or the banks that are financed by those two banks pull all their money out of the banks. This ultimately results in actual bankruptcy for those banks. The banking interests that made the comments then go and buy out the banks that have gone broke, increasing their share of control over the banking community in America.

Several years later, in 1913, the Federal Reserve Act is signed into law, consolidating the banking elite’s interests and given them power over the currency of an entire nation. Not even a year later, the Great War begins and those banks finance both sides of the war, even after the States enter the war following the sinking of the Lusitania.

The Federal Reserve bank begins loaning U.S. currency to the government(read people) at interest. (Imagine borrowing a dollar from the bank. You now owe the bank $1 plus the interest, let’s say $.05. You only make $1 a month so now you owe $.05 but need money to live for the next month, you borrow another dollar, now you owe $1.11. Since you never can get more money than you borrow, you can never pay the interest.) They are also charged with safeguarding the gold of the nation. During the war, the Fed increases the money supply.

In 1920, they recalled their loans and shrank the money supply. This coincides with the bank runs in 1920. During the 20’s, the money supply is increased again, margin loans are introduced and the ‘roaring 20’s’ began. In 1929, the banking interests leave the stock market, coinciding with the en masse recall of margin loans leading to the Great Depression.

Instead of increasing the money supply to buffer the market falls, the Fed contracts the amount of cash in supply.

In 1933, FDR releases an executive order threatening imprisonment to any who refused to turn in their gold bullion. After this, the gold standard is removed leaving only the paper currency and the debt incurred in its creation to give it value.

In essence, just at this point, what you have is a bank that determines how much money a nation is allowed, not based on their valued assets(gold, silver, etc.) but based on mathematical determinations supposed, but never shown, to be in the interest of the nation’s best interest. It loans this currency with interest attached. Not only this, but this bank is controlled by those who also control the currencies of Europe. It also is the bank that holds onto the nation’s gold though gold is no longer what is used to give currency its value.

Finally, this bank that has the power to withhold our currency, loans us our currency, holds all our gold(tangible value), that is controlled by businessmen interested in making profits rather than public servants charged with obeying laws and public needs, a bank given the ability to have its own police force, the bank that failed numerous times during its existence to avert the disasters it was created to avert, is not subject to any oversight by the government and, subsequently, to any oversight by the very people who own the gold they hold and who truly hold the power to print the currency they borrow. No audits, no transparency.

Just imagine if that were the case.

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No event has happened that has not occurred in another time. Sure, we have gadgets and gizmos that change the details of what happens, but the core of events are always the same.

Men fight for money and power and women or love. Governments rise up, grow and govern the how, why, when and wheres of our lives. Citizens grow tired with the weight of servitude and either collapse and throw off the shackles, even with the risk of death looming. How it happens, why it happens, the details may change, but it all stays the same.

This blog is dedicated to many things. First, we will focus on history. We will see how we can use it to see where we are today and how to know where we are going and how to get where we want.

We will predict the future by looking to the past.

During this history lesson, I will jump to current events to show how we are repeating what has already been done before. I will reference where my information is from and I will always be sure to point out whether I am drawing the connection or if it is accepted fact that draws the line.

Never take what you hear, read or see from another at face value. Check, double check, triple check anything I say. That way, you know it is true and you aren’t just taking my word for it. If I find I have said something inaccurate, I will admit it.

This is about truth. No matter who it empowers. The truth is the ultimate authority. It always favors those who share it.

Ask yourself, who truly admits the truth? The government? If they admitted the truth, then why is so much of what they do classified?

http://www.ebaumsworld.com/player.swf

They hide the truth, whether it is harmful to them or not. They do not believe you have a right to the truth. They believe they have the authority to create truths for you.

The truth is power. It can raise up and destroy the greatest of men, peoples and empires. Take it for yourself. If you accept the truth, you will have accepted power. The power you have every right to for simply existing. The power to live as you see fit guided by absolute truth.

We’ll begin our sooth-saying where it began with me.

The Treaty of Versailles. It was in studying the Great War and the resulting treaty that I came to realize that much of what we are told and much of what we believe to be true is based on falsehoods and broken promises.

Let’s start with the shot that rang out across the world on June 14, 1914.
Archduke of Austria Franz Ferdinand is shot and killed by a Serbian national. Ferdinand was presumed to be the heir to the Austrian Throne. Granted, this assassination was not initially met with ferocity as Ferdinand was not greatly beloved by anyone, including the Emperor. However, his death was ultimately used in order to create a conflict between Austria and Serbia which then led to a cascade of events culminating in what is now known as the First World War.

Austria declared war on Serbia. Russia, who had a defense pact with Serbia declared war on Austria. Germany, who had a defense pact with Austria, declared war on Russia and so it went until the players of this war were established.

In America, the People wished to avoid the affairs of Europe. However, banking interests recently given power over the American currency and economy had great stakes in the war. In the end, Wilson broke his promise made when running for re-election and entered the war after the sinking of the Lusitania.

We will talk more about Wilson, the banking interests and the Lusitania in another segment as all of those are of great importance to today.

With the entry of America into the war, the ‘Allies’ victory was assured. It is interesting to note that America specifically declared that they were not part of the joint forces in Europe, rather, they were a separate force out to seek vengeance against the Germans for the sinking of the Lusitania.

The war raged for several years with the only two true movements. The Axis pushed the line westward and it was pushed back by the Allies. It was, for all intents and purposes, a stalemate.

In the Middle East, Captain Lawrence and a multitude of other British and French officers were sent to gain the support of the Arabic people against the Ottoman Empire in order to disrupt their supply lines to the front. The movie “Lawrence of Arabia” is a romanticized version of this story. In order to gain the support of the Arabs, England promised that upon the war’s end, the entirety of the Middle East would be returned to the Arabic people for them to govern as a single people, Muslim and Jew alike.

The end of the war came with the revolution of the German people being won against the monarchy. Having taken the country out of the hands of royalty and instating democracy, they called for a cease-fire in order to allow for negotiations to end the war.

This led to the Treaty of Versailles. By the end of the negotiations, England and France managed to break nearly every promise made and commit to actions that would impact the global stage up until the current day.

In the treaty, it is asserted that Germany was the instigator of the war and the German people were guilty of a mass of war crimes. Let’s go back. How did the war start? With the Archduke of Austria being shot by a Serbian national. No mention of Germans there. Following this, Austria declares war on Serbia. Still no German involvement. Russia declares war on Austria. No Germany. Then Germany; there it is; declares war on Russia.

Fourth to the fight. To add to this, the German people were against the war nearly the whole time and it is one of the primary reasons they brought the monarchy down and called for a cease-fire.

So, the fourth nation to enter the war and the nation to have called for a cease-fire is to blame for the entire travesty. Well, that’s what the treaty says.

Now, it is true that Germany’s leaders were quite interested in going to war. What you must look at is that while the governing body of Germany acted maliciously, the people wanted no part of it which resulted in the revolution that brought about the end of the German monarchy. However, even with the willingness of the royal family to go to war, they, by far, are not the sole or primary instigator of the war.

I won’t say they are connected, but it is interesting to note that at this time Germany was fast becoming a power to its own right, rivaling England, Spain and France militarily and economically. Italy, just for the record, betrayed Germany and Austria to join the Allies and to be defeated more often than not in the war as a whole.

As a requirement of the treaty, much of Germany’s best land was seized as repayment and they were instructed to never build up a military. The result of this action was a near destruction of the German economy which led to great discontent.

Moving to the resulting actions in the Middle East, rather than abide by their guarantee to return the region to the Arabic people, France and England devised another strategy. They first divided the region into smaller states and then attempted to colonize them. This did not work out well and they were forced to surrender the colonies which resulted in what is now the map of the Middle East. This has led to the Arabs fighting for decades as to who will re-create and rule the new caliphate as that was the intention of the Arabs upon the entire region being returned.

The second action Britain committed was the establishment of a Jewish homeland in Palestine. This was headed by the colleagues and associates of the Rothschild family who had already firmly established themselves as the banking elite in Europe and, finally, in America. Through political actions in the League of Nations, England(interestingly, at this time, in debt to the central banks) was given permission to create a homeland for European Jews to colonize in the Middle East.

It is important to realize that Jews already lived in the Middle East and had for centuries. The Arabic people were compromised of Jews, Muslims, Christians and even heathens. During the caliphates and the Ottoman rule, these different beliefs were not a source of rivalry on the scale they are today.

Wilson, during the debate of creating this homeland, sent a committee to find out what the indigenous people thought. It was determined that Arab Muslims and Jews alike unanimously said no to this idea. I wonder how Wilson would have dealt with this fact had he not had a stroke that left him all but incapacitated and leaving the way for his wife to essentially act in his stead until his term was over.

In the end, Britain created this homeland and the European Jewish immigration to the Middle East began.

What does all this matter to us today? Let the sooth-saying lesson begin.

First, with the near total destruction of Germany’s economy, one could see how the resulting atmosphere, through poverty and indignation, could give rise to a man who convinced the people he could and would restore their lost land, bring back their wealth and once again become a power to rival all other powers that be. Maybe I’m wrong, but that, coupled with Jewish families such as the Rothschild family seeming to have a dis-proportionate amount of wealth, even after the economic destruction brought by the Treaty of Versailles, could easily lead the desperate nation to follow a man into genocide.

Is it right? No. But was the Nazi movement simply the result of a mad-man with a flair for speech? I find that unlikely. The rise of Hitler and the hatred for Jews was only possible with the actions of Britain through the treaty of Versailles.

Second, with another European empire claiming rights over their lands, is it any surprise that the Arabs have a deep-seated hatred for the Western ways? With white people calling themselves Jews taking a piece of the Middle East and expanding it while using the Arabs, Jews and Muslims alike, as fodder and servants, is it any shock that the State of Israel is constantly under threat? Of course, it might make it worse when Israel has a history of starting fights with their neighbors. The war between Israel and Egypt in the 40’s was precipitated by Israel.

In no way do I condone the actions of Hitler nor do I have any ill-will against the Jewish people. These are facts, historically documented occurrences. Yes, I point out some possible connections, but the facts are there.

History shows us why the Middle East has been and still is in turmoil. It shows how the Nazi party had such an easy rise to power. It shows why the Western world is at such odds with the Middle East.

Knowing this, it must be quite hard to still want to ignore the past and its influence on today and tomorrow.

Some references for World War 1, the Treaty of Versailles and other related topics in this posting:

The Start of the War

http://www.firstworldwar.com/origins/causes.htm

http://www.todayifoundout.com/index.php/2010/12/what-started-world-war-i/

The Arabic Involvement and Betrayal

http://en.wikipedia.org/wiki/Arab_Revolt

http://en.wikipedia.org/wiki/Hussein-McMahon_Correspondence

http://en.wikipedia.org/wiki/Partitioning_of_the_Ottoman_Empire

http://www.jewishvirtuallibrary.org/jsource/History/hussmac.html

http://www.jewishvirtuallibrary.org/jsource/History/hussmac1.html

http://www.historylearningsite.co.uk/mcmahon.htm

http://www.historylearningsite.co.uk/balfour_declaration_of_1917.htm

http://en.wikipedia.org/wiki/Balfour_Declaration

http://www.fordham.edu/halsall/mod/balfour.asp

The Taking of Palenstine

http://en.wikipedia.org/wiki/Sykes%E2%80%93Picot_Agreement

http://www.historylearningsite.co.uk/sykes_picot_agreement.htm

http://www.jewishvirtuallibrary.org/jsource/judaica/ejud_0002_0019_0_19421.html

The End of the War

http://www.firstworldwar.com/features/armistice.htm

http://www.oldmagazinearticles.com/Armistice_News_Report_The_Stars_and_Stripes_November_11-1918_pdf

The Treaty of Versailles

http://www.historylearningsite.co.uk/treaty_of_versailles.htm

http://www.colby.edu/personal/r/rmscheck/GermanyD1.html

http://www.fordham.edu/halsall/mod/1919versailles.html

http://www.johndclare.net/peace_treaties4.htm

By all means and as always, do your own research. Don’t take my word for anything.