Friday, February 1, 2008

History of Money Part V

To continue on with the dominant role of the Rothschilds, Benjamin Franklin said it was the prime reason for the Revolutionary War. The Currency Act of 1764 crippled the prosperous economy of the colonies and sent them into a depression and later the war of independence.

After Lord Cornwallis surrendered in 1781, the colonies were desperate for financing. They were 25 million in debt and the public credit system had collapsed. Robert Morris, a delegate of the Constitutional Congress and signer of the Declaration of Independence from Pennsylvania, was unanimously appointed Superintendent of Finance. He imposed a fractional reserve banking system and the National Bank of North America was chartered. It began with a $400,000 loan from France. After 5 years in place, the value of the American money plummeted and the charter was not renewed.

Six years later, another group of private investors was able to get the First Bank of the United States chartered. Again they used the model of the Bank of England with fractional reserve banking. They did however, chose a new name to disassociate themselves from the first bank that had been shut down. Having learned their lesson the first time, they were able to get a 20 year charter. Just the year before, Mayer Amschel Rothschild said, "Let me issue and control a nation's money and I care not who writes the laws."

The government borrowed 8.2 million from the bank in the first five years and prices subsequently rose 72%. President Thomas Jefferson in 1798, who could see an ever increasing debt with no hope of paying in back said, "I wish it were possible to obtain a single amendment to our Constitution - taking from the federal government their power of borrowing."

As with the first bank, the government had been the only depositor to put up any real money, with the vast majority raised from loans the investors made using the magic of fractional reserve banking. When it was time for renewal of the charter, the bankers warned of bad times ahead if they didn't get their renewal. The charter was not renewed. Five months later, Britain attacked America and started the War of 1812. Again, there is no mention of this in the history books as to the cause of the war.

Around this time, Napoleon Bonaparte was also distrustful of the Rothschild controlled Bank of France. He said in 1815, "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."

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. That means more resources used, more loans taken out, more money made by the bankers; and even more amazingly, the loans are usually given on condition that the victor pays the debts left by the loser.

Napoleon did not fall into that trap. In 1803, instead of borrowing from the Bank of France, he sold territory west of the Mississippi River to the United States and President Thomas Jefferson for 3 million dollars in gold. This deal was known as the Louisiana Purchase. Napoleon used the money to build an army and conquered much of Europe. Each place Napoleon went, he found his opposition being financed by the Bank of England, which made huge profits as Prussia, Austria, and finally Russia all went heavily into debt trying to stop him.

The Rothschild family, however, had the last laugh with Napoleon. Four years later, 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, he escaped from his banishment on the island of Elba, off the coast of Italy, and returned to Paris. By March of 1815, Napoleon had equipped an army with the help of borrowed money from the Eubard Banking House of Paris.

The famous battle of Waterloo resulted three months later where Napoleon led 74,000 French troops against 67,000 British and other European troops 200 miles Northeast of Paris. Back in London, the real 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 returned to London delivering the news of Napoleon's defeat 24 hours ahead of Wellington's courier.

A victory by Napoleon would have devastated Britain's financial system. Nathan openly began to sell huge amounts of British government bonds. Everyone interpreted that the British lost and sold as well, crashing the value of the bonds. Then, Nathan began to secretly buy the devalued bonds at a small fraction of what they 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 lifetimes.

Do you still think that the markets are not manipulated and governments are not controlled, even in today's times?

There will be more about the expanding control of the Rothschilds and their associates, and their roles in world events next week. Stay tuned ...

We know that anyone born of God does not continue to sin; the one who was born of God keeps him safe, and the evil one cannot harm him. We know that we are children of God, and that the whole world is under the control of the evil one. I John 5:18-19 (NIV)

If you have comments or questions, please feel free to contact me at the address below.
Email: DeltaInspire@panama-vo.com

I give special thanks to the XAT group in London, England for much of the historical background of money presented this week.

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