by Griping Grandpa
Banking is a very old profession; almost as old as prostitution.
In this story, we will refer to a Mr. X, who represents not a single person, but a type of person who seeks to amass vast fortunes and power regardless of who gets hurt in the process. We will trace the history from 1790 to the death of Kennedy in 1963 and see what we can glean.
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You may have wondered how Mr. X got that rich? You may also have guessed though, that it may just have had something to do with banking. So let’s look there first.
We will not at this time concern ourselves with the bankers of ancient Babylon, nor with the money changers of the New Testament, nor with the Medicis in Italy; instead we will begin our journey in relatively modern times, when a certain Mr. X famously stated, “Let me issue and control a nation’s money and I care not who writes the laws.” Mr. X, a banker, had befriended the local Prince by first selling him rare coins at bargain prices and later lending him money at interest.
Mr. X had five sons who followed their father into the banking business and settled in different European countries. Thus began the nefarious practice of getting rich by bankrolling wars. Their mother once proclaimed, “If my sons did not want wars, there would be none.”
This was when the British Empire ruled the world and conquered the seas. One son became the most influential banker in the developed world, located in England.
Banks and Wars
Meanwhile, across the seas the American colonies were flourishing – they had created their own currencies and did not have to pay interest to bankers. Britain had just come out of the costly French and Indian War, also called the Seven-Year War, and was already struggling to pay its debts to Mr X at the Bank of England. Mr X felt endangered by how the American settlers were doing so well with their own money, their high work ethic, and their productivity and he was not making a dime off of it.
What to do about it? To please Mr X the King outlawed American money, forcing the colonists to use British money, borrowed at interest. Not many history books record this as the true cause of America’s War of Independence.
“The refusal of King George 3rd to allow the colonies to operate an honest money system, which freed the ordinary man from the clutches of the money manipulators, was probably the prime cause of the revolution.” — Benjamin Franklin
After gaining their independence, the Americans were happy with their no-interest money and did not want a central bank that would charge them interest. Sadly the covert pressure from Mr. X was still strong and in 1791, the First Bank of the United States was founded with a 20-year charter. Mr. X got richer while the people suffered.
The 19th Century
When the 20 years were up, Congress refused to renew the bank’s charter. Britain’s Mr. X was furious and threatened a war. The British Prime Minister did not want a war with America. He had his hands full fighting Napoleon. The prime minister was assassinated and his successor authorized the War of 1812.
Napoleon, also defied the French Mr. X by printing his own money and thus avoided having to pay Mr. X interest. That did not sit well with France’s Mr. X. Wellington’s forces eventually defeated the French at Waterloo in 1815 and Britain’s Mr. X scored big – his courier informed him of Britain’s victory a day before the news reached the public and by pretending that the British forces had lost the war, the stock market crashed and Mr. X quietly bought up vast numbers of shares at rock bottom prices, to resell them after the market recovered when the victory became public knowledge. Mr. X became very rich and influential in Britain.
After winning the War of 1812, America made the mistake of founding the Second Bank of the United States, this time making the American Mr. X richer and the nation poorer.
In 1832 Andrew Jackson campaigned for president with the slogan, “Jackson And No Bank!” He became President and, as promised, the bank’s charter was not renewed. An assassination attempt followed, but luckily both of the assassin’s pistols failed to fire.
A later President, Zachary Taylor declared, “The idea of a national bank is dead, and will not be revived in my time.” In 1850, he died of arsenic poisoning after eating a bowl of cherries and milk.
In 1857, President James Buchanan took measures to prevent banks from issuing more loans than they had in reserves. He too was poisoned, but survived, though 38 other people who attended the dinner died.
In 1861, the Civil War started .and President Lincoln issued government money, called the Greenback. Mr. X did not like this. He wanted to send military aid from Europe to aid the Confederates and thus defeat Lincoln’s Union army. However, the Russian Tsar derailed this plan. Russia, like America at that time, did not have a bank owned by Mr. X. After the war, Lincoln was re-elected and wanted to continue using the interest-free Greenbacks.In Russia, 1881, the Tsar and his family were also murdered
In 1881, President James Garfield was shot and subsequently died some weeks after stating, “Whoever controls the volume of money in our country is absolute master of all industry and commerce, and when you realize that the entire system is very easily controlled, one way or another, by a few powerful men at the top, you will not have to be told how periods of inflation and depression originate.”
In 1901, President William McKinley, who wanted all paper money to be backed by gold and a balanced government budget, was shot and died a few days later.
The 20th Century
Which brings us up to 1913 when everything changed.
The year 1913 was when the way we have and handle money was changed forever. In our history this was the third privately owned central bank of the United States, renamed as the Federal Reserve System to make it sound more acceptable, even though it was neither federal, nor did it have any reserves. Federal Income tax arrived in that same year.
President Woodrow Wilson signed off on these changes, but he later recanted, saying, “I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation is .now controlled by its system of credit. We are no longer a government by free opinion, no longer a government by conviction and the vote of the majority, but a government by the opinion and duress of a small group of dominant men.”
Prior to 1913 was one of the most prosperous economic times in the history of the USA – the time when there was no Federal Reserve and no Income tax.
One year later, World War I began and lasted until 1918. This was a war between all the major European players each one funded by their own bank under its control of a Mr. X. All the Mr. Xes profited handsomely from this war. The United States joined the fray in 1917, despite President Wilson’s promise to keep America out of the war. America’s Mr. X profited at the expense of millions of lives. This war consolidated the banking power, creating economies driven by debt, rather than by productivity and solvency.
The American Federal Reserve was here to stay, it had emerged as as a major player on the world stage becoming a full-fledged central bank.
After the allied victory, Germany was ordered to pay the war costs of all the participating nations, even though Germany had not even started the war. Those costs were astronomical. Germany’s privately owned central bank broke free of government control, resulting in runaway inflation where people burned the worthless bank notes as fuel to heat their homes. Germany’s Mr. X profited handsomely while the German people starved.
The year 1929 marks the start of Great Depression in the United States, believed to have been triggered by Mr. X contracting the money supply. Part of the fault also lies with public over-confidence and foolish speculation in the Stock Market. Mr. X scored.
In Germany, when the Weimar Republic came to an end, Hitler’s rise to power was spectacular. He issued new state money (no interest) and the country recovered. In Germany, when the Weimar Republic came to an end, Hitler’s rise to power was spectacular. He issued new state money (no interest) and the country soon prospered. Unfortunately, he also wanted to conquer other countries and World War II (1939 – 1945) resulted. The various Mr. Xes prospered while millions of people perished.
The war started when German troops invaded Poland, but in fact Britain, worried about Germany’s economic success welcomed the war; at least Winston Churchill did. In a 1936 radio broadcast he said, “We will force this war upon Hitler, if he wants it or not.” And after the war, he told President Truman, “The war wasn’t only about abolishing fascism, but to conquer sales markets. We could have, if we had intended so, prevented this war from breaking out without doing one shot, but we didn’t want to.”
In 1963, President John Kennedy restored the issuance of money to the government and 6.5 billion dollars worth of interest-free silver-backed United States Notes were issued. He was assassinated that same year. The executive order was canceled and United States Notes were destroyed.
If you were ever wondering why governments do not issue their own money instead of borrowing it at interest from a privately owned central bank, the answer is simple. Coercion. If a country happens to be prosperous, measures are taken to make it less so and for it to incur large debts it will not be able to repay. If that country refuses to go into debt, that country is soon involved in a costly war, or its leader is assassinated.
It is no accident that the world is so chaotic, with constant wars and rumors of wars. It is the old principle of “divide and conquer” at work. Mr. X profits from chaos and disunity.
All of this seems pretty hopeless, doesn’t it? But, no matter how bad a situation is, something can always be done about it. One thing we can do is to be skeptical about what the media tells us and to do our own diligent research to find out what is happening behind the scenes. We can strive to reduce our debts and urge our leaders in government to do the same. We can lessen our dependence on financial institutions. We can practice tolerance toward others, rather than hatred, and to oppose any new wars, because wars do not serve the people. We can spread the word to friends and family and whoever else will listen. The more people know and recognize Mr. X’s nefarious schemes, the more likely it is that the situation will resolve.
Quote for the Week
“History records that the money changers have used every form of abuse, intrigue, deceit, and violent means possible to maintain their control over governments by controlling money and its issuance.” – President James Madison
Most of the quotes and facts mentioned in this article can be found in the following links.
About the Author
Griping Grandpa is the pen name for Peter Verhoeff. He was born and raised in the Netherlands, the youngest son of a school principal. He developed varied interests, such as nature, music and science. He made electronic engineering his career and later moved into computer programming and Web design. He also developed technical writing skills and wrote an eBook for small business. Peter now lives in the United States.
Peter’s passion is to write about things that matter to the world at large, to educate people in important topics that are not well known , the broader knowledge of which ultimately may help to bring about a better world.