Friday, 27 April 2012

8. Some history: How the bank instability of fractional reserve greedy rule, blackmailed the public sector (states) to allow for the privatization of issuing (printing) money, by the private banking system

The history of the pathogeny of the banking system seems to start at the 17 century in England. For the first time in Europe and probably for all the planet in 1694 (see the Bank of England which was a private bank, started to issue currency and lend the English state, after a putsch , as the English state was practically bankrupt by having spend all its gold in war.  This was exactly with the death of the queen Maria B Stuart who was against such a thing. Against the privatization of the states currency was also the Quine Elisabeth 1st . In order for the bankers to acquire this privilege,  the King Charles 1st had to be put to death by Oliver Cromwell in 1649 (see e.g. ) . The bankers took advantage of the financial ruin of England due to 50 years of  wars at the decade 1690-1700. And that is how the bank of England appeared for the first time in history of Europe, issuing the kingdoms money with private bankers gold and with the fractional reserve banking trick. .  Originally the banks where vault-keepers of the gold from various sources. They were paid a kind of rend to keep the gold which corresponds to the present day deposit rate. For the gold kept, were printed receipts, that were essentially the paper-money.  The greediness of the owners of the banks, made them notice that under normal social conditions only 10 per 100 blocks of gold were moving in and out of the vaults. The 90 remained always in the vault. So they made the fraud to print "receipts"=paper-money for these 80 blocks, that seemed never to be asked, and lend them with interest to gain more money. Soon the fraud, was legalized and so the fractional reserve rule was created. But the fractional reserve rule created the basic pathogenic of the banks, which is that under statistical non-normal conditions of the economic activities, they collapse. If on the other hand the service of lending the surplus or non-used money in the society, was undertaken by non-profit public organisations, with funds based on the taxes of the public, and with just matching the lenders with the borrowers as the real estate brokers much the sellers with the buyers, taking some percentage fees, and not taking ownership of the deposited money under the fractional reserve rule,   no such pathogenic instability would appear, as no fractional reserve rule would be needed. 
Based on the certainly of the instability, the private banks saw only one way out: To be able to print as much money as the wanted! And this they did by blackmailing the governments (Royalties) that if they did not yield to their demands their banks would collapse and together with them all the financial system.: So they succeeded in  depriving the public sector from the privilege to issue money, and the largest private banks,  acquired this privilege by owning a joint "central bank" that was covered under titles like "Bank of London", "US Federal Reserves", "European Central Bank" etc that suggested to the public that the public sectors owns the bank,while in reality, they owned the central bank.

This current unethical  situation of the  western monetary systems, where the sector of private banks owns the central bank, is unprecedented in the history of the human civilization
In the Eastern Roman Empire (Byzantine empire) the issuing of money was a privilege only of the state. The same with the Roman empire in Rome. And if you argue that these states where not democratic and brutal, let us go even back in time: In the democracy of ancient Athens in Greece, never the privilege of  issuing of money was ever granted to any person or few private families. And the same with the old Chinese empires. I hope that the contemporary Chinese will resist to this pathogens of the western monetary system, and would never allowed it. And furthermore I hope that the western societies will democratise and return the ownership of the central banks to the states.

The next video are dedicated to the above history of the pathogeny of the banking - central bank system:

The role of private families as owners of the central banks :

( Remark. There are strange rumors of how the family of Rothschild succeeded for so many centuries to own the  central banks. Some strange rumors claim that when more advanced galactic civilizations of the Andromeda alliance (see e.g. )  , which is the most powerful but also benevolent alliance of civilizations in the galaxies, looked at it, they discovered that the Rothschild used a ceremony, that was based on their belief that the same soul was incarnated over again and again from one generation to the next.  These more advanced civilizations discovered that this soul was a leader in the civilization of the lost planet Phaethon,  which is now only the orbit of the asteroids. And also the rumors say that they discovered that the Draconian Alliance, the oldest evil alliance of reptoid anthropoids in the galaxy, was involved in acquiring so much hidden power through money. The Andromeda alliance  immediately intervened arrested the Rothschilds and  made them and especially the  chief Rothschild, just a walk-in of them, who would not pursuit anymore the old destructive plans, not irrelevant to the destruction of the ancient destroyed planet. Currently the head of the Rothschild family is concerned in giving much or "all" as he claims of his money away and somehow they do not support anymore the old goals of the "new order". The rumors even say that the are against to the lesser rich center of powers that now want to run the "new order" through the central banks and that now the Rothschilds have turned their views around 360 degrees, and they are closer to the views if the current blog which is quite standard for the walk=ins of the Andromeda Alliance. The reasons is that the "new order" was new only in 1790-1890, when the money power of the middle bourgeoisie class was more progressive than the power of the Royalties in Europe. Now such a monetary monopoly power is no more progressive for the evolution of humanity. An indication of this is the many millions bets of the  Rothschild family that the Euro-zone will collapse and its countries will leave from it, which terrifies the current ECB president Mario Draghi. For the term walk-in the reader is referred to google in the Wikipedia in the internet. See also 

A video about the current Aristocratic Rothschild family

The house of Rothschild 1934. Full Movie

The Rothschild empire

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