46-WW1 AND 1929 CRASH

In 1913, with the U.S. Federal Reserve fiat dollar in the bag, the City decided to create more democracies by getting rid of what was left of the Ancien Regime countries around the world. After the Glorious Revolution in England, in 1688, seeing that France, its perennial base was under threat, the Holy Roman Empire’s headquarters was moved east of the Rhine to Vienna. In 1805, Napoleon had defeated the Emperor of Austria, but the time had come to give the empire the coup de grace. The idea was to create a grandiose European market economy, just like that of the U.S.A. It had been relatively easy in the case of the USA, for it was built on virgin land where a few gentle animists roamed, but in the case of Europe, a built-up hodgepodge of countries with unique cultures, old money, and long-standing traditions, it was indeed a different kettle of fish. But if globalization was to be, the first step was to transform the autocracies run by tsars, kaisers, kings, warlords, and sultans into democracies. Faced with the complex situation in Europe, the City bankers had no choice but to bulldoze the whole lot and start from scratch.

The three Gorgon sisters, the Reuters, AP and AFP news agencies, used the most basic kind of propaganda to work the nations of the world into a frenzied, anti-German mood. We don’t know when the phrase ‘the war to end all wars’ hit the wires, and we don’t know who was first to utter it, but we do know it was repeated time and time again until it became a war cry around the world. Any good propagandist will agree that once such a phrase is rooted in the popular psyche, very few citizens will dare speak out against it, for war and patriotism are concepts that work well together. Later, when it came time for the USA to go to war, President Wilson even created the Committee on Public Information (CPI), an official propaganda and censorship agency.

Archduke Franz Ferdinand was assassinated on June 28, 1914, and without the least indication that Serbia was responsible for the assassination, Emperor Franz Joseph declared war on Serbia on July 28th. On August 4th, the United Kingdom declared war on Germany and by August 12th all the major powers were at war and the first major engagement of WWI, which took the lives of 27,000 French troops, occurred on August 14th, 1914. That means that in less than eight weeks after the assassination, all countries had declared war on each other and blood had started flowing. Normally, diplomats talk, gesture, threaten, and make attempts at compromise, especially when dealing with such a banal, international incident. So, if events unfolded so quickly at a time when communications were in their infancy, it can only mean that the City had, in anticipation of the moment, let huge amounts of credit flow to the arms industries of the concerned European countries. War is definitely City business, and it always gets the desired results by financing warring parties on both sides. All it has to do is increase or decrease the amount of credit given to one side or the other.

Though a lot of sane people violently opposed the war, the wires kept spewing out the “war to end all wars” propaganda to the point where it became unsafe to challenge it. So, the war was played out, and almost twenty million people were killed because an unknown duke was assassinated by an unknown anarchist, the international scare word in vogue at the time. It seems that if all the great statesmen of the world (the suits) went berserk and made the worst kinds of decisions with lightning speed and on cue. WWI was indeed wanted and well-planned.

In 1914, Germany, not known to be a great, seafaring nation, became the new mistress of the seas overnight. It produced submarines like bratwurst and controlled the North Atlantic shipping lanes by sinking everything in sight. Germany somehow overpowered both the English and American navies, the two greatest navies of the times. But when Germany sank the Lusitania in 1915, the American cry for retaliation grew louder. That’s when President Wilson created his propaganda machine, the CPI. The City was ready to have America join the fray.

WWI was played out like a chess game in which the City moved the pieces on both sides of the board like it had with Wellington and Napoleon, and with the North and South during the American Civil War. However, in this case, something went terribly wrong and WWI had to be stopped. It came to an abrupt end in the same manner it had started on July 14th, 1914. When, in October 1918, the Americans and their allies breached the Siegfried Line, which is in France, not Germany, the Germans stopped fighting. The Central Powers just rolled over and immediately signed the Armistice on November 11th, 1918. The Allies didn’t even push the invaders back into Germany. The victorious Allies just seemed to say, “okay, guys, it’s over, you can go home now.”

However, if we look at it more closely, it was a very different story. By the time the Armistice was signed, the Tsar had been executed and the Bolsheviks had taken over, and that meant that the Russian Empire no longer existed. It also meant the City had full control over the Urals gold and the Baku oil. As for the Austro-Hungarian and Ottoman Empires, they had been on life support before the war and after being battered about by the Italians, Russians, and British, they just broke into pieces. Moreover, since the British had established a strong military presence in Baghdad, Jerusalem, and Cairo, the whole Middle East oil patch was under lock and key. Nonetheless, the main goal had not been achieved, for the Holy Roman Empire east of the Rhine, Germany, was still standing. WWI was not a success story, far from it, and here’s why the City bankers had to take another kick at the can in 1939.

At the beginning of the war, the dynasty of bankers in the City had planned for the Americans to join the Western Front and for Russia to create an Eastern Front, the intention being to crush what was left of the Holy Roman Empire by surrounding the Germans and Austro-Hungarians in a pincer movement. But this did not happen because the bankers did not foresee a fatal decision on the part of the Tsar. The Bolshevik Revolution had been planned by the bankers, but it happened earlier than expected.

The debacle began when, on August 21, 1915, Tsar Nicholas II left for the front in order to take command of the Russian armies that weren’t doing very well. The bankers did not see this coming, for the Tsar knew little about commanding and organising large military forces, and more importantly, they had not taken into consideration the reign of Tsarina Alexandra Feodorovna, the Tsar’s German wife, that was to follow. The Tsarina was advised by Rasputin who was against the war, as were the Bolsheviks in the Duma. The Eastern Front was dead in its tracks.

The Duma was prorogued indefinitely, the name of St. Petersburg changed to that of Petrograd, and the Bolsheviks who had sat in the Duma were now more dynamic than ever. Russian troops were in dire straits and suffered considerable defeats and human loss in spite of the massive amounts of arms supplied by the bankers and shipped from the Pacific coast via the Trans-Siberian railway, whose construction they had financed at the beginning of the century. Nicholas II abdicated, a provisional government was formed, Lenin returned from exile and signed a separate peace with Germany. The October Revolution and the execution of the imperial family would soon follow.

At the end of 1918, without hope of creating an Eastern Front, and after years of apocalyptic trench warfare in France, the City decided to end WWI and come back another day. Lenin died in 1924 from gunshot wounds sustained in a 1918 assassination attempt and was replaced by a more sanguinary Stalin. With Stalin in place and the effects of the Treaty of Versailles, a most unrealistic treaty, being hard felt in Germany, the groundwork was set for WWII.

The City took advantage of the twenty-year pause between the two World Wars to advance its agenda and perpetrate the 1929 market crash. Like in all market manipulations, the City bankers made all the wrong decisions in order to create a major market bubble, and when they felt the time was right, they burst it and pretended to fix things by again making all the wrong decisions. The 1929 financial tsunami was really about destroying the pound as a world reserve currency and crowning the dollar. As of 1913, the City had two major world currencies on hand, and one had to go. It came as no surprise when the dollar was chosen as the world fiat reserve currency in Bretton Woods in 1944.

After WWI, America was the greatest market economy in the world and most of Europe, especially Britain, overtly started buying into the American dream. As UK gold purportedly flowed into the US, the market bubble grew, and when the world was told that the English gold reserves were depleted, it burst. In reality, since the City controlled both countries’ monetary systems, physical gold didn’t have to be moved, it only had to appear to do so. Everyone could see that England was investing heavily in America, and after the crash, the three Gorgon Sisters simply told the world that the pound was no longer adequately backed by gold, and confidence in the hallowed currency eroded. It was a rather easy tour de main, for the City and the FED have never been audited by an independent accounting firm.

At the end of the day, the Market Crash of 1929 had been a Machiavellian way of establishing international dollar supremacy by making it appear to be the result of legitimate business transactions in a free-market economy. The City depends on the democratic process for its very survival and it must nurture the illusion of empowerment among the people. Smoke and mirror tactics are therefore used. The only question we mere mortals need ask is whether the number of casualties and the pain suffered during the French Revolution, the American Civil War, WWI, the Great Crash, and WWII, are a just price for the benefits we receive from the consumer world we live in today.

45-CONSPIRACY AND CONTROL

When we became intelligent some three million years ago, we became aware of our mortality and were consequently scared out of our wits. This led to unrest and confusion within our specie for the longest time. Fortunately, in 325 of the Common Era (CE), a group of good men decided to create a very effective religion, one meant to control man’s behavior by instilling the fear of God in him. That religion, Christianity, invaded the infrastructure of the Roman Empire like a hermit crab. Once established with its network of kings, it forced all the citizens of the empire to adopt the Nicene Creed. It ruled by diplomacy and fear of God, and when that didn’t work, it used threats of excommunication, wars, crusades, and inquisitions to set things right. The official religion was not only intolerant and exclusive but was opposed to the spread of knowledge as well. It was created on the premise that poverty was godly, and that science was the work of the devil. Its finances were based on tithing and deeding by those who wanted to buy their way into heaven when the time came. It was a haphazard but boundless source of revenue, and corruption set in. The Vatican ruled very inefficiently. Not surprisingly, along the way, it created two deadly enemies, the Jews and Huguenots (French Protestants). Those two enemies joined forces in London in 1600, but finding more tolerant political conditions in Amsterdam, they established their headquarters there in 1602. Under the guise of the East India Company, they ruled the oceans of the world for nearly a century. As soon as it became feasible, in 1688, they returned to London and established their head office in the City. The next step was the creation of a political system called democracy.

In 1694, the East India Company created the Bank of England, a financial oligarchy that now ruled the oceans out of the City in London instead of Amsterdam. The bankers were determined to turn the world into one great market economy, an English one, of course. That short-sightedness was what allowed Mayer Amschel Rothschild to create the Bank of North America in 1781 and his son, Nathan, to take over the Bank of England in 1810. Mayer’s far-sightedness gave us international finance, a system where market economies, or democracies, freely traded with each other. Mayer’s dynasty had the added advantage of not only speaking with one voice, but in making credit accessible to governments as well as merchants and ordinary citizens, it could only know lasting success. Today, we are all living witnesses to that fact.

Credit is the most sophisticated and cleanest method of control, and more importantly, it’s always in great demand. The credit machine could be compared to a water pumping system where the big water reservoir is the hundred and fifty thousand of gold stockpiled in the City and its Central Banks. From that reservoir, the gold is magically transformed into paper dollars before being sent on their way. The added magic in this operation is that no matter how many dollars are printed, the stockpile of gold never decreases, quite the opposite, it is meant to increase in size as more gold is mined and bought up. Today, the good as gold dollars, paper or electronic, soon to be replaced by virtual bitcoins, flow to the central bank of each country as well as the multiple world organizations such as the United Nations, Unesco, World Bank etc. These are connected to smaller pipelines going down to industries and individuals in the form of loans, and to the man on the street in the form of a salary. On each pipeline there is a tap that controls the output, the tap being the interest rate. If the City wants a country or a multinational to shape up, it gets Standard and Poor’s or some other mysterious entity to let the Gorgon Sisters, Reuters, AP and AFP, tell the world that their credit is no good. Then the NYSE, the first domino in a long chain of dominoes, falls in the desired direction, thus starting a chain reaction. The dominoes are manipulated by the ‘suits’, politicians, traders, professors and journalists, who are never told what to do or say, but know exactly what the one who pays their salary wants, and act accordingly. No matter how many dominoes there are in a given sequence, they all fall in the direction in which the original domino fell, and if one domino fails to fall, it is simply replaced or bypassed, and the chain restarted. All people who receive a salary do what is expected of them, and that includes everybody, the President on down, but no one is made to think he’s a pawn, for democracy is all about instilling the feeling of empowerment.

Credit control works extremely well, but when drastic action like war is needed, the people must be made to believe that it’s necessary and to not question it. Credit control depends on democracy, and democracy depends on the empowerment of the people. People have to be made to believe they are the ones deciding or democracy can’t work. In the good old Holy Roman Empire days, the clergy used very crude ways to impose its will, as mentioned earlier, but Mayer’s dynasty in the City has always used more sophisticated controls such as free speech, job creation, and media feed in order to sway public opinion. But in dire cases, it gets America, the City’s executive arm, to arrange for a Pearl Harbor or a 9/11 in order to get things done.

First, the people must be empowered, and that comes about largely with the creation of jobs. When war is being planned, huge sums of credit are injected to fuel the arms industry, creating a lot of employment and making a lot of people rich in the process. But swaying public opinion is trickier. The process begins with the Gorgon Sisters feeding the various media with the necessary information or misinformation, and encouraging ‘free’ speech. Those who speak for the war are good patriots and good leaders while those who oppose the war and question the facts leading up to it are quickly branded conspirators, or even traitors. The Gorgon sisters freely let conspiracy theories flow into the media because they can easily counter them by having a number of respected ‘suits’ defend the City’s point of view that has become theirs. People eventually become blasé to conspiracy, to the point where every time they hear the word, they switch off. Honest citizens don’t listen to those nuts, and when it comes to the crunch, they trust their elected leaders and their media, regardless.

In 1913, after the Federal Reserve Act was signed into law, Hollywood started sending pictures depicting the greatness of democracy around the world. The dollar was becoming as good as gold, and the image was becoming the message. On the one hand, Mayer’s dynasty controlled the dollar and the many currencies tied to it, and therefore unofficially ruled the financial world, and on the other, the ‘land of the free’, or the ‘land of opportunity’, became everyone’s ideal on both sides of the Atlantic and beyond. Every able-bodied person wanted to come to America or be like Americans. It opened wide the door to globalization.

Today, Marshall McLuhan’s maxims, ‘the image is the message’, and ‘the global village’ have become more meaningful than ever. Hollywood followed by TV, the internet, and the smartphone gave us an image-oriented society and virtually empowered us. But as incomes grew, people had more leisure time on their hands, and that meant the Gorgon Sisters had to play an ever-greater role in filling the airwaves. Politics, religion, sports, entertainment along with local news had to keep everybody focused. Now people do it all by themselves through the social networks.

However, the citizen needing ever more direction, the old overpowering control, the one based on the fear of God and the threat of damnation no longer sufficing, a new concept was introduced. Since humans are genetically conditioned to live with fear, it is very easy to condition them to forever expect dread, as long as they are convinced that their leaders will save them if and when disaster strikes. In fact, it is a simple control, very much like a riding crop used to make horses do what they are meant to do. A horse would not be worth his salt if it didn’t do what its owner wanted it to do, so, once broken in, the crop is used to remind it of a looming threat. A good owner never hits the horse with the crop, but simply makes sure the horse is aware of it. In a democracy, people may have the illusion of being free and empowered, but they react to credit and media just like the horse to the crop. Instilling fear into a population must go hand in hand with the assurance that it is protected. People may complain, and that is useful in keeping their minds busy, but they must above all trust the one who brandishes the crop, or it doesn’t work.

Fear comes with names like Hitler, Khomeini and Bin Laden, and words like anarchists, Marxists, communists, fascists, terrorists, ISIS, Al Qaeda and Dahesh, Stalin and Putin, names and words that were and are repeated in the media thousands of times each day throughout the world. From atop his elevator shoes, the leader of North Korea threatens to blow up the whole world, and we tremble. And though the five permanent Security Council members, America, Russia, England, France and China are under one roof and have never fired a shot at each other, we continue fearing Russia to this day. The banking dynasty in the City created the Permanent Security Council and controls all the central banks of the world, yet we still fear being annihilated by an atomic bomb coming from Russia, and even North Korea, as ludicrous as that is. The Gorgon Sisters know how and when to brandish the crop, and by sending images of terrorist attacks, along with ridiculous military parades and the lighting of wet firecrackers out of North Korea, they make us tremble, just like they did with Russia not so long ago. As more and more people become smombies, that is glued to their smartphones, we could say that they are hardwired to the Gorgon Sisters who constantly spew out marching jingles.

Two great examples of the way the crop is used have to do with airport security checks and the climate change debate. Anybody who has a million dollars can hijack or blow up a plane anytime, anywhere in the world, and any professional killer can use a plastic card in his wallet, or the plastic food utensils on board, to kill or threaten to kill anybody at will. As for security checks per se, if people are asked to remove their belts and shoes, it is simply a symbolic way to instil fear in the middle class of the world, the flying population, by symbolically having them drop their pants and walk bare-footed, for it serves absolutely no other purpose. The only valid control at the airport is the metal detector that’s meant to stop the ordinary crazies who may be tempted to carry a knife or a gun on board. As for climate change, it is a reality, but not for the reasons the Gorgon Sisters give. The reality is that we’re on the warming leg of a glacial cycle, and that the production of CO2 is irrelevant. But, like with the horse who trusts the crop holder, we trust the one who spews out the fabricated hype about CO2. The more the crop is brandished, the more we walk the line.

 

 

44-THE FED

In 1768, Haym Salomon, Mayer’s right-hand man in America, with the help of another great collaborator, Robert Morris, took charge of the French gold given as an aid package to America and used it to create the Bank of North America in 1781. That sealed the destiny of America, and what a great one it turned out to be.

In 1791, Alexander Hamilton drafted a constitution for the 1st Bank of the United States, and all of Mayer’s people agreed on the rules and regulations that were to govern it. During the time the bank was headquartered in Philadelphia, eight branches were created, one in each of Baltimore, Boston, Charleston, and New York in 1792, and four more in each of Norfolk in 1800, of Washington in 1802, of Savannah in 1802 and of New Orleans in 1805.

Its largest customer was the government, and one of the highlights of that relationship was the bank’s efficient managing of the government’s fiscal affairs with respect to the Louisiana Purchase in 1803. The bank’s notes circulated countrywide and infused a safe medium of paper money into the economy for business transactions. Although the relationship between Mayer’s bank and the government wouldn’t always be a smooth one, due to those who didn’t want a strong Federal Government and who thought bankers were crooks, it would remain steadfast, today’s Federal Reserve Bank being the ultimate proof.

Nonetheless, in 1811, American politicians who opposed Mayer’s bank refused to renew the charter of the 1st Bank of the United States. As we have seen in a previous blog, in retaliation, Nathan, who had by now taken control of the Bank of England in the City, proceeded to ‘teach the impudent Americans a lesson’ by forcing them, in 1812, to wage a costly war. Shortly after the British troops burned down the President’s Residence in 1815, Congress signed a 20-year charter for the 2nd Bank of the United States in 1816, and 26 more branches were opened almost immediately across the country.

 

Augusta, Georgia (1817, closed 1817) – Baltimore, Maryland (1817)

Boston, Massachusetts (1817) – Charleston, South Carolina (1817)

Chillicothe, Ohio (1817) – Cincinnati, Ohio (1817)

Fayetteville, North Carolina (1817) – Lexington, Kentucky (1817)

Louisville, Kentucky (1817) – Middletown, Connecticut (1817)

New Orleans, Louisiana (1817) – New York City (1817)

Norfolk, Virginia (1817) – Portsmouth, New Hampshire (1817)

Providence, Rhode Island (1817) – Richmond, Virginia (1817)

Savannah, Georgia (1817) – Washington, D.C. (1817)

Mobile, Alabama (1826) – Nashville, Tennessee (1827)

Portland, Maine (1828) – Buffalo, New York (1829)

St. Louis, Missouri (1829) – Burlington, Vermont (1830)

Utica, New York (1830) – Natchez, Mississippi (1830)

 

When members of Congress again refused to renew the bank’s charter in 1836, it no longer mattered, for it was the perfect excuse to open the West at breakneck speed. The 2nd Bank of the United States with all its branches remained the unofficial national bank, while many ruthless individuals sought wealth and power by creating banks in the new states being created. All the shinplaster money issued by the state banks didn’t in the least affect the banks that constituted the backbone of American finance, the unofficial 2nd Bank branches. These banks continued to work as a unit using the dollar that continued to be fixed to the price of gold in the City. It was a standard that the country could depend on, and all the funny money printing state banks had no choice but to stay within range of that standard. So, industrial America developed by leaps and bounds in spite of, or perhaps more accurately, because of the Wildcat Banking years.

In the 1860’s, the South was out of economic sync with the rest of the country, and that had to be put right if the Manifest Destiny dream was to become a reality. Before the Civil War, huge amounts of credit from the City and its affiliates in Holland and Germany started flowing into the country in order to give the North and the South the means to wage war. The cotton economy was on the wane, and the political and financial pressures on the South were great. Pushed to the wall, the South’s only option was to secede, which it proceeded to do. War ensued as planned, and the South was completely destroyed. Thereafter, the carpetbaggers loaded with cash invaded the South, while railroads were being built in a frenzy from coast to coast. Soon, Congress, tired of financial bedlam, signed the National Bank Act in 1863. Congress had had no choice but to seek loans from the well-established unofficial 2nd Bank network whose currency was the US dollar which was tied to the gold in the City, thus re-instating the dollar as the national currency in the process. Although businessmen and politicians continued to ignore the reality of international financial control by the City, and to distrust bankers, they just knew it was the most reliable and sound financial arrangement possible.

In 1913, the Federal Reserve Bank was created by Congress. Its shareholders were the Rothschild Bank of London, the Rothschild Bank of Berlin, the Warburg Bank of Hamburg, the Warburg Bank of Amsterdam, the Lazard Brothers of Paris, the Israel Moses Seif Banks of Italy, the Chase Manhattan Bank of New York, the Goldman Sachs Group of New York, the Lehman Brothers of New York, and the Kuhn Loeb Bank of New York.

All these banks were privately owned or backed by the City bankers who held huge quantities of gold bullion in its vaults. Although the FED became the executive arm of world financial power, that power remained in the hands of those who had all the gold, the City bankers. Since 1810, the daily price of gold has been fixed by the Rothschild Bank in the City, in London. In 1913, when the gold price started being fixed in US currency, the dollar became as good as gold.

Democracy is a system that encourages elected representatives of the people to borrow from the private central bank of their country in order to get things done before taxes are collected. Democracy is based on this human foible, for if a country is not indebted, control is lost, and democracy can’t exist. The system has worked flawlessly since 1694, giving mankind order and prosperity in the process. However, we should be especially grateful to Mayer who created the Bank of North America in 1781, and his son Nathan who overpowered the Bank of England in the City in 1810 and laid the groundwork for universal credit as we know it today. Since then, the secret has been to buy all the gold bullion being mined around the world, in complete anonymity, and then putting it to good use by just letting it sit in a nice neat pile in a secret place.

43-BOER WARS

The story of the City in London is all about gold. Mayer was the founder of international banking because he was the first banker to use gold as it was meant to be used. According to him, gold was not meant to be spent, it was meant to be mined, purchased, and then stockpiled in a secure location for all time. The one who had the gold necessarily controlled the monetary systems. Mayer created the Bank of North America in 1781, thanks to the 500 metric tons of French gold made possible thanks to Benjamin Franklin’s intervention. After Mayer’s real estate coup in France in 1789, he managed to funnel another 5000 tons of French gold to the City. In 1810, his son Nathan had the wherewithal to fix the daily price of gold worldwide from his offices in the City. Nathan had perhaps as much as 7000 metric tons of gold in his possession, close to half the gold ever produced at that time. He held most of England’s debt, and was in charge of the English, French and American monetary systems.

In 1812, Nathan sent Napoleon to Russia in order to force the Tsar to let private interests mine for gold in the Urals, which was a determining moment in our history. Thanks to the French engineers from l’École des Mines de Paris, placer deposit gold mining techniques had been refined and newly mined gold started being stockpiled in the City.

Mayer built his dynasty on gold and trust, and his dynasty wasn’t about to change course. When hard rock mining was made possible in the 1880’s, gold production skyrocketed. Paper money went to the miner, and gold went to the City. As gold was stockpiled in the City, the paper it backed, whether in America or England, became as good as gold. There have never been losers, for the miners get paid the world price set in the City, and Mayer’s dynasty stockpiles the gold and creates more credit.

The total production of gold to date is estimated at around 250000 metric tons. The gold used in jewellery, industry, and dentistry, combined with the token amounts of gold on display in the various Central Banks of Germany, Italy, France, USA, China, Russia etc., probably accounts for around 75000 metric tons. Most gold is held in a virtual form as Exchange-Traded Funds (ETF’s), and though it is impossible to be accurate, there’s around 150000 metric tons of real gold bullion unaccounted for and stockpiled in the City and its financial satellites.

The Boer Wars are forgotten wars, but if one analyzes and correlates the dates and circumstances surrounding the discovery of gold and diamonds in South Africa and the wars that were fought in that country, it becomes clear that they were all about controlling the production of those two precious commodities. In 1879, the British had managed to put an end to the Zulu military might, and in 1880, had declared the South African Republic to be an English possession. But in 1881, the Boers, independent white Dutch settlers, badly defeated the British troops and sent them home. In 1899, this time, with the help of several Commonwealth countries, Britain came back to fight the Boers, and after heavy casualties on all sides, British, Commonwealth, African and Boer, England finally prevailed in 1902. The British unilaterally changed the name of South African Republic to Union of South Africa in 1909, while declaring it to be a dominion of the British Empire. Since then, South Africa produces a disproportionate amount of the world’s gold and diamond production, and both commodities are neatly stockpiled in places like the Wharf in the City in London.

42-CITY OF LIGHTS

In France, in 1804, after the Civil Code was rammed through, non-elected Prefects answered directly to the central authority in Paris and ran their departments with the help of the dreaded Fouché police. After Napoleon was sent to St. Helens, Nathan, who was head of his dynasty in the City, had taken a wait and see attitude in order to determine whether or not a constitutional monarchy was possible for France. He let Louis XVIII have a go at it, followed by Charles X and Louis-Philippe d’Orléans. Those three monarchs were more interested in doing the Holy Roman Empire’s bidding by perpetrating the White Terror and taking their revenge on the Bonapartists and old revolutionaries in general than in founding a constitutional monarchy. When Nathan died in 1836, France was still being plagued by political unrest, and his son Lionel decided to put the French constitutional monarchy matter to rest. Putting a stop to anarchy in a country to which Mayer’s family was so beholding, was the only decent thing to do. Lionel decided to turn Paris into the City of Lights and give France stability by enshrining the centralist state put in place by Napoleon.

The 500 tons of gold sent as an aid package to America in 1768 had been used by Mayer to open the Bank of North America, and the roughly 5000 tons of French gold generated by the real estate scam in 1789 and stored in the Goldsmid Bros. vaults in the City, had been used by Nathan to take over the Bank of England. Lionel, as head of the family dynasty, now controlled the monetary systems of America, England, France and most of Europe, and he personally wanted to do something special for France. This country had given a lot to his family and the world, and yet had been subjected to untold miseries just because it happened to be the cornerstone of the Holy Roman Empire. Things had to be put right.

Adolphe Thiers was an active French political figure from 1825 to 1875, and no doubt did the City’s bidding during that time. In 1830, after helping to bring down Charles X, who had replaced Louis XVIII, he supported the Orléanist Louis-Philippe and had him elected with Lafayette’s help. When this third attempt at Constitutional Monarchy failed, political unrest continued, and Lionel decided that enough was enough. In 1841, mindboggling amounts of credit were made available to Thiers in order for him to build a wall around Paris.

When the wall was completed in 1844, it was time to get rid of Louis-Philippe d’Orléans, the last king that was to be. In 1848, Lionel had Thiers support Louis-Napoleon, a Bonapartist, who was easily elected President with the help of intellectuals such as Victor Hugo. Thiers then encouraged Louis-Napoléon to declare himself Emperor Napoleon III, which he did in 1852, before starting to demolish much of Paris, for this would not be a very popular move. In 1853, Adolphe Thiers and Baron Haussmann, the Paris Prefect, started levelling whole sections of the city to make wide avenues that would, as far as the federalists were concerned, facilitate the movement of troops within the city. Nonetheless, the demolition of crowded and unhealthy medieval neighborhoods, the building of wide avenues, parks and squares, the annexation of the suburbs surrounding Paris, the construction of new sewers, fountains and aqueducts, and row upon row of the most beautifully designed residential buildings in the world, continued. Since gas used for lighting was now accessible throughout the city, Paris became known as the City of Lights. One could ask, however, why they had surrounded Paris with an impregnable thirty-three-kilometer wall bordered by an elevated 250-meter strip of land defended by sixteen fort cities that were part of that wall?

It obviously meant there was a Machiavellian plan in place. In fact, as beautiful as Paris had become, the fortifications had turned Paris into a fishbowl that was meant to contain the Federalists. When the time came, they were to be rounded up with their families and sent into exile to New Caledonia, thus removing a major political obstructionist force. Although the Federalists were true democrats, like none before or since, and as appealing as pure democracy is in theory, it is not feasible. Human nature simply won’t allow it. The only type of democracy possible is one where the monetary system is run by private interests. The one who prints the money cannot be the one spending it, and that’s what the Federalists were in effect trying to do. The very unique and democratically minded Federalists had to go.

Moreover, if France was to be stabilized, the Royalists had to be given a death blow as well. The period from 1789 to 1840 had proven that the two groups could never achieve constitutional government on their own. The only solution was to enforce the centralist state concept that Napoleon had put in place in 1804, and have the population elect a president every seven year. This would empower the people at the expense of the Federalists and the Royalists who would never recover.

So, when the City of Lights was more or less completed in 1870, it was time to get rid of the Federalists. Louis-Napoleon, listening no doubt to a divine voice coming from the City, made the most absurd decision by declaring war on Prussia over an insignificant diplomatic incident. Even more bizarre, he wasn’t the one who attacked Bismarck, it was Bismarck who attacked Paris. After the preordained siege of Paris, Louis-Napoleon fled to England, and Thiers, now the self-proclaimed head of government, transferred his whole administration to Versailles. Surprisingly, he came up with the colossal sum of money needed to buy back the 100,000 French prisoners from Bismarck. Inexplicably, it was Thiers, not Bismarck, who marched into Paris with the recently purchased French prisoners. His orders were undoubtedly to surround and capture the members of the Commune, Federalists all, before exiling them to New Caledonia, but things didn’t work out as planned. The Federalists put up too strong a resistance, and a panicking Thiers commited the worst atrocities imaginable. Tens of thousands of Federalists, including women and children, were executed, while perhaps twice as many were imprisoned under atrocious conditions and died in the process. Thiers did succeed in exiling thousands of Federalists to New Caledonia, and it did mark the end of that political force, but the Paris Commune remains one of the worst blood baths in history, much to Lionel’s chagrin, to be sure.

On January 3rd, 1875, Henri Wallon tabled an amendment proposing that the President of the Republic be elected by an absolute majority in both the Senate and the House of Representatives for a renewable seven-year period. It became known as the Constitutional Laws of 1875 which officially established France as a centralist state. Thiers, who had been chosen as the 1st President, conveniently resigned, and Patrice MacMahon, a catholic aristocrat who was neither monarchist nor republican, was elected to succeed him. The wall that had cost countless billions to build was torn down, and the Stockholm syndrome kicked in. The French have since put their trust in one man, their President. They elect their President, a “father knows best” figure, who somehow becomes l’État, and they trust l’État more than they do their fellow citizens. The people’s Assembly is composed in great part by duly elected mayors, and since mayors answer directly to prefects nominated by the President, it means that France is a centralist state, or a democratic dictature.

41-INDIA-JAPAN-CHINA

The East India Company established company rule in India in 1757, and it lasted till 1858. In 1857, after a major rebellion in which over 100 000 Indians were killed, Lionel, Mayer’s grandson, decided to dissolve the East India Company and put an end to the Maharajahs’ power by establishing the British Raj or Crown rule which lasted till 1947.

In 1930, Mohandas Ghandi led a revolt that galvanized the country, but it was short-lived. Nevertheless, after many subsequent years of haggling in the halls of power, both in India and London, it was agreed, in 1947, that two republics should be created, that of Pakistan (mainly Muslim) and that of India (mainly Hindu). That agreement later caused more religious tensions and more bloodshed, but nonetheless, there was an Indian general election in 1951. The Indian National Congress won a landslide victory, at which time Jawaharlal Nehru became the first democratically elected Prime Minister of the country. Religious tension remained high, but politically, India and Pakistan were working democracies and would never look back.

China, on the other hand, was a much more complicated matter. It was the biggest, most populated country in the world, had no permanent borders, no army, no national identity, no national pride, no economy to speak of, and was ruled by warlords. So, in 1947, with India on the verge of becoming a democracy and Europe on the verge of signing the Treaty of Rome, it was time to transform China into what was to become the world’s second largest market economy.

It was Lionel who had started the process way back in 1853 when he decided to use Japan, a country that was totally isolated from the west, to do his bidding. That year, American Commodore Matthew Perry sailed into Edo (Tokyo) Bay with four battleships, two of which were powered by steam. The Japanese marveled at this awesome technology that was totally unknown to them. However, their admiration would have been tempered if they had known that this impromptu visit was meant to usher in the end of an era, the Tokugawa shogunate.

In 1854, the Convention of Kanagawa was signed forcing the Japanese to open their ports and trade with the U.S. In 1868, the City financed the Meiji restoration, a political movement that gave Japan a constitutional monarchy, which meant that the City now controlled its monetary system and could allow credit to flow in. The Meiji restoration ushered in modernization and westernization, and as expected, the Japanese played the game of fukoku kyokei, a game that turned their country into a rich and aggressive military power. Japan’s power grew, and the proud Samurais, not satisfied with their colonial status, developed a warring culture that would spread beyond its borders.

However, Japan had no raw materials to speak of and was dependent on the US for oil, rubber, and iron. In other words, because it was vulnerable, it could easily be controlled. Japan was encouraged to expand and become the most important military and economic power in Asia. It grabbed Manchuria, Taiwan, and parts of Northern China in 1894, defeated Russia in 1904, and took possession of Korea in 1910. By 1929, it was an empire, and its expansionism knew no bounds. When Emperor Hirohito defied America by refusing to retreat from China, the US turned a blind eye and didn’t retaliate. Instead, the US slowed down the flow of raw materials for the world to see, but not enough to stop Showa expansionism. Japan had a job to do, and that was to clean up the warlords in China.

WWII was the time chosen to destroy the Japanese empire that had by then finished its work in China. The City then proceeded to the next step, which was securing China’s borders. China had Russia and Mongolia to the north, the Himalayas to the west and the Pacific Ocean to the east, but the South China Sea border had a few leaks. After the war, England returned to Hong Kong, Chiang Kai-shek took charge of Taiwan in 1949, and in 1950, after a longer than expected war, North Korea became a buffer zone between China and Japan. After the Indochina war that led to the creation of a nationalist Vietnamese government in 1975, the Southern Chinese border was sealed. However, for good measure, in the 1970’s, the City allowed both Pakistan and India to develop the nuclear bomb. China was now effectively contained, and the process of unification could continue.

As early as 1934, the City had found the man who would help get the job done. Mao Tse-tung had caught the City’s attention when he was elected Chairman of the Soviet Republic of China, which, at the time, consisted only of a small communist controlled mountainous area in Jangxi province. The City started financing Mao after his famous Long March in 1935 when he evaded the Nationalist troops at the head of some eight thousand men, becoming a Chinese hero in the process. With the City’s help, Mao Tse-tung went on to fight Chiang Kai-shek’s Nationalists, and in 1949, the Nationalists were forced to retreat to Taiwan, and Mao became President of the People’s Republic of China. From 1949 to 1958, Mao organized the peasants into collectives. He followed that up with his disastrous Great Leap Forward in 1958, when at least twenty million Chinese peasants starved to death. It was only after the purges of the Cultural Revolution, when the Red Guards went through China with a fine-tooth comb waving the Little Red Book and forcing everybody to follow the party line that the country started responding to one authority, Mao’s Communist Party. It was time to turn it into a market economy.

The City was so confident that China would turn out the way it did, that immediately after WWII, in 1945, it gave China a permanent seat in the UN Security Council along with France, Russia, U.S.A., and the UK. In 1964, it allowed it to join the nuclear club, and in 1980 it opened the first of several Special Economic Zones in Shanghai.

 

40-CIVIL WAR

Once the borders of America became permanent, there was still a lot of work to do. The Southern agricultural economy was out of sync with the rest of the country. The bankers in the City wanted the southern states to become a vibrant market economy like the one in the northern states, but the South was talking secession. Geopolitically, there was no question of letting it secede, not to mention the fact that it had huge oil reserves. Industry needed oil and the banking dynasty in the City wasn’t about to let a few country gentlemen destroy its American masterpiece. The South’s old structures had to be destroyed, but the problem was how to start the civil war. The South was not about to attack the north, for it didn’t have the means and didn’t have to. All it had to do was stay put and secede. So, if something was to be done, it was up to the North. As it so happened, slavery was a hot issue in the north, and the City backed the candidacy of Abraham Lincoln, a staunch advocate for National Union and racial equality. It was rather easy to get the northerners worked up over the issue of slavery, and they declared war the minute the South seceded from the Union. Slavery was the pretext, not the real issue, and that’s why when Abraham Lincoln declared war on the South in 1861, he clearly stated that it was to preserve the Union. That was the truth, and it was precisely what the City bankers wanted.

At first, it seemed that Abraham Lincoln was doing the City’s bidding, and, presuming he was assassinated for political reasons, we could ask ourselves why the City bankers wanted to get rid of him, if such was the case. Some say it was because, in 1862, in wanting to pay for the war, Lincoln had Congress pass the Legal Tender Act, thus giving Congress the right to print interest-free money. However, because the greenback had so little success, it was likely not the real reason. We don’t know whether the City bankers printed counterfeit greenbacks in order to flood the market, or whether they directed its ‘defunct’ 1st Bank of the United States not to accept them, but the end result was that the greenback was not well accepted and quickly depreciated. In 1863, Lincoln had had no choice but to reverse his position and sign the National Bank Act. Even though the greenbacks remained legal tender, the law re-established the status of the dollar, thus voiding the Legal Tender Act. So why, if such was the case, have Lincoln assassinated when the interest-free money problem no longer existed?

A plausible explanation for his assassination would be to say that Lincoln was just too nice a guy. We can be sure that the City had wanted to replace the archaic social structures of the Old South after the war, for that had been the whole purpose of the war. But because Lincoln wanted to let the Southerners rebuild their lives as they saw fit, and since his only requirement was to have the Southerners swear allegiance to the Union, he had to be stopped. The domino theory, where the establishment players do what they’re paid to do, played out. So, those who wanted to do what was best for America, proceeded to do just that. After winning the 1864 election by a landslide, Lincoln was assassinated on April 14th, 1865. The carpetbaggers, most of them lawyers and businessmen loaded with cash, were immediately unleashed, taking the South by storm. They purchased the abandoned lands, opened businesses and banks, constructed railroads, and last but not least, started running the local governments. America was now officially the United States of America.