THE BANK OF NORTH AMERICA (1781-1785)
If you can't beat them, join them, might well have been his argument when arms dealer, Robert Morris suggested he be allowed to set up a Bank of England style central bank in the USA in 1781.
Desperate for money, the $400,000 he proposed to deposit, to allow him to loan out many times that through fractional reserve banking, must have looked really attractive to the impoverished American Government.
Already spending the money they would be loaned, no one made a fuss when Robert Morris couldn't raise the deposit, and instead suggested he might use some gold, which had been loaned to America from France.
Once in, he simply used fractional reserve banking, and with the banks growing fortune he loaned to himself, and his friends the money to buy up all the remaining shares. The bank then began to loan out money multiplied by this new amount to eager politicians, who were probably too drunk with the new 'power cash' to notice or care how it was done.
The scam lasted five years until in 1785, with the value of American money dropping like a lead balloon. The banks charter didn't get renewed.
The shareholder's walking off with the interest did not go unnoticed by the governor.
"The rich will strive to establish their dominion and enslave the rest. They always did. They always will... They will have the same effect here as elsewhere, if we do not, by (the power of) government, keep them in their proper spheres."
Governor Morris 1
1. THE CONSTITUTIONAL CONVENTION OF 1787, 7/2
FIRST BANK OF THE UNITED STATES (1791-1811)
It worked once, it will work again. It's been six years. There are a lot of new hungry politicians. Let's give it a try. And so there it was, in 1791, the First Bank of the United States (BUS). Not only deceptively named to sound official, but also to take attention away from the real first bank which had been shut down.
Its initials however gave a clear indication that Americans were once again being taken for a ride. And true to its British model, the name of the investors was never revealed.
Having gotten away with it a second time, some of them probably wished Amshall Rothschild had picked a different time to make his pronouncement from his private central bank in Frankfurt.
"Let me issue and control a nation's money and I care not who writes the laws."
Mayer Amschel Rothschild, 1790
Not to worry, no one was listening, the American government borrowed 8.2 million dollars from the bank in the first 5 years and prices rose by 72%. This time round the money changer's had learned their lesson, they had guaranteed a twenty year charter.
The president, who could see an ever increasing debt, with no chance of ever paying back, had this to say.
"I wish it were possible to obtain a single amendment to our Constitution - taking from the federal government their power of borrowing."
Thomas Jefferson, 1798
While the independent press, who had not been bought off yet, called the scam "a great swindle, a vulture, a viper, and a cobra."
As with the real first bank, the government had been the only depositor to put up any real money, with the remainder being raised from loans the investors made to each other, using the magic of fractional reserve banking. When time came for renewal of the charter, the bankers were warning of bad times ahead if they didn't get what they wanted. The charter was not renewed.
Five month later Britain had attacked America and started the war of 1812.
Meanwhile a short time earlier, an independent Rothschild business, the Bank of France, was being looked upon with suspicion by none other than:
NAPOLEON (1803 - 1825)
He didn't trust the bank saying:
"When a government is dependent upon bankers for money, they and not the leaders of the government control the situation, since the hand that gives is above the hand that takes... Money has no motherland; financiers are without patriotism and without decency; their sole object is gain."
Napoleon Bonaparte, 1815
For both sides of a war to be loaned money from the same privately owned Central Bank is not unusual. Nothing generates debt like war. A Nation will borrow any amount to win. So naturally if the loser is kept going to the last straw in a vain hope of winning, then the more resources will be used up by the winning side before their victory is obtained more resources used, more loans taken out, more money made by the bankers; and even more amazing, the loans are usually given on condition that the victor pays the debts left by the loser.
In 1803, instead of borrowing from the bank, Napoleon sold territory west of the Mississippi to the 3rd President of the United States, Thomas Jefferson for 3 million dollars in gold; a deal known as the Louisiana Purchase.
Three million dollars richer, Napoleon quickly gathered together an army and set about conquering much of Europe.
Each place he went to, Napoleon found his opposition being financed by the Bank of England, making huge profits as Prussia, Austria and finally Russia all went heavily into debt trying to stop him.
Four years later, with the main French army in Russia, Nathan Rothschild took charge of a bold plan to smuggle a shipment of gold through France to finance an attack from Spain by the Duke of Wellington.
Wellington's attack from the south and other defeats eventually forced Napoleon into exile. However in 1815 he escaped from his banishment in Elba, an Island off the coast of Italy, and returned to Paris.
By March of that year Napoleon had equipped an army with the help of borrowed money from the Eubard Banking House of Paris.
With 74,000 French troops led by Napoleon, sizing up to meet 67,000 British and other European Troops 200 miles NE of Paris on June 18th 1815, it was a difficult one to call. Back in London, the real potential winner, Nathan Rothschild, was poised to strike in a bold plan to take control of the British stock market, the bond market, and possibly even the Bank of England.
Nathan, knowing that information is power, stationed his trusted agent named Rothworth near the battle field.
As soon as the battle was over Rothworth quickly returned to London, delivering the news to Rothschild 24 hours ahead of Wellington's courier.
A victory by Napoleon would have devastated Britain's financial system. Nathan stationed himself in his usual place next to an ancient pillar in the stock market.
This powerful man was not without observers as he hung his head, and began openly to sell huge numbers of British Government Bonds.
Reading this to mean that Napoleon must have won, everyone started to sell their British Bonds as well.
The bottom fell out of the market until you couldn't hardly give them away. Meanwhile Rothschild began to secretly buy up all the hugely devalued bonds at a fraction of what they were worth a few hours before.
In this way Nathan Rothschild captured more in one afternoon than the combined forces of Napoleon and Wellington had captured in their entire lifetime.
If you can't beat them, join them, might well have been his argument when arms dealer, Robert Morris suggested he be allowed to set up a Bank of England style central bank in the USA in 1781.
Desperate for money, the $400,000 he proposed to deposit, to allow him to loan out many times that through fractional reserve banking, must have looked really attractive to the impoverished American Government.
Already spending the money they would be loaned, no one made a fuss when Robert Morris couldn't raise the deposit, and instead suggested he might use some gold, which had been loaned to America from France.
Once in, he simply used fractional reserve banking, and with the banks growing fortune he loaned to himself, and his friends the money to buy up all the remaining shares. The bank then began to loan out money multiplied by this new amount to eager politicians, who were probably too drunk with the new 'power cash' to notice or care how it was done.
The scam lasted five years until in 1785, with the value of American money dropping like a lead balloon. The banks charter didn't get renewed.
The shareholder's walking off with the interest did not go unnoticed by the governor.
"The rich will strive to establish their dominion and enslave the rest. They always did. They always will... They will have the same effect here as elsewhere, if we do not, by (the power of) government, keep them in their proper spheres."
Governor Morris 1
1. THE CONSTITUTIONAL CONVENTION OF 1787, 7/2
FIRST BANK OF THE UNITED STATES (1791-1811)
It worked once, it will work again. It's been six years. There are a lot of new hungry politicians. Let's give it a try. And so there it was, in 1791, the First Bank of the United States (BUS). Not only deceptively named to sound official, but also to take attention away from the real first bank which had been shut down.
Its initials however gave a clear indication that Americans were once again being taken for a ride. And true to its British model, the name of the investors was never revealed.
Having gotten away with it a second time, some of them probably wished Amshall Rothschild had picked a different time to make his pronouncement from his private central bank in Frankfurt.
"Let me issue and control a nation's money and I care not who writes the laws."
Mayer Amschel Rothschild, 1790
Not to worry, no one was listening, the American government borrowed 8.2 million dollars from the bank in the first 5 years and prices rose by 72%. This time round the money changer's had learned their lesson, they had guaranteed a twenty year charter.
The president, who could see an ever increasing debt, with no chance of ever paying back, had this to say.
"I wish it were possible to obtain a single amendment to our Constitution - taking from the federal government their power of borrowing."
Thomas Jefferson, 1798
While the independent press, who had not been bought off yet, called the scam "a great swindle, a vulture, a viper, and a cobra."
As with the real first bank, the government had been the only depositor to put up any real money, with the remainder being raised from loans the investors made to each other, using the magic of fractional reserve banking. When time came for renewal of the charter, the bankers were warning of bad times ahead if they didn't get what they wanted. The charter was not renewed.
Five month later Britain had attacked America and started the war of 1812.
Meanwhile a short time earlier, an independent Rothschild business, the Bank of France, was being looked upon with suspicion by none other than:
NAPOLEON (1803 - 1825)
He didn't trust the bank saying:
"When a government is dependent upon bankers for money, they and not the leaders of the government control the situation, since the hand that gives is above the hand that takes... Money has no motherland; financiers are without patriotism and without decency; their sole object is gain."
Napoleon Bonaparte, 1815
For both sides of a war to be loaned money from the same privately owned Central Bank is not unusual. Nothing generates debt like war. A Nation will borrow any amount to win. So naturally if the loser is kept going to the last straw in a vain hope of winning, then the more resources will be used up by the winning side before their victory is obtained more resources used, more loans taken out, more money made by the bankers; and even more amazing, the loans are usually given on condition that the victor pays the debts left by the loser.
In 1803, instead of borrowing from the bank, Napoleon sold territory west of the Mississippi to the 3rd President of the United States, Thomas Jefferson for 3 million dollars in gold; a deal known as the Louisiana Purchase.
Three million dollars richer, Napoleon quickly gathered together an army and set about conquering much of Europe.
Each place he went to, Napoleon found his opposition being financed by the Bank of England, making huge profits as Prussia, Austria and finally Russia all went heavily into debt trying to stop him.
Four years later, with the main French army in Russia, Nathan Rothschild took charge of a bold plan to smuggle a shipment of gold through France to finance an attack from Spain by the Duke of Wellington.
Wellington's attack from the south and other defeats eventually forced Napoleon into exile. However in 1815 he escaped from his banishment in Elba, an Island off the coast of Italy, and returned to Paris.
By March of that year Napoleon had equipped an army with the help of borrowed money from the Eubard Banking House of Paris.
With 74,000 French troops led by Napoleon, sizing up to meet 67,000 British and other European Troops 200 miles NE of Paris on June 18th 1815, it was a difficult one to call. Back in London, the real potential winner, Nathan Rothschild, was poised to strike in a bold plan to take control of the British stock market, the bond market, and possibly even the Bank of England.
Nathan, knowing that information is power, stationed his trusted agent named Rothworth near the battle field.
As soon as the battle was over Rothworth quickly returned to London, delivering the news to Rothschild 24 hours ahead of Wellington's courier.
A victory by Napoleon would have devastated Britain's financial system. Nathan stationed himself in his usual place next to an ancient pillar in the stock market.
This powerful man was not without observers as he hung his head, and began openly to sell huge numbers of British Government Bonds.
Reading this to mean that Napoleon must have won, everyone started to sell their British Bonds as well.
The bottom fell out of the market until you couldn't hardly give them away. Meanwhile Rothschild began to secretly buy up all the hugely devalued bonds at a fraction of what they were worth a few hours before.
In this way Nathan Rothschild captured more in one afternoon than the combined forces of Napoleon and Wellington had captured in their entire lifetime.
No comments:
Post a Comment