13-INDUSTRIAL REVOLUTION

The Anglican religion, England’s state religion, can hardly be called protestant like the Lutheran or Calvinist religions, it’s a pseudo Catholic religion. When King Henry VIII personally replaced the Pope as head of the Church of England, he and the country remained very much Catholic. In time, that church was strongly influenced by the Puritans and the Lollards who had followed John Wycliffe’s teachings and wanted to change the liturgy, but it remained true to its Roman Catholic roots. The strong anti-royalist or anti-papist feelings in England in the 17th century were a sign of the growing opposition to Church abuse, of course, but the Catholic Church’s demise was mainly due to the work of the Jews and the Huguenots who had created the East India Company in Amsterdam, in 1602. As the company dominated world trade, its owners became very powerful, and they were more determined than ever to destroy their mortal enemy, the Holy Roman Empire, or the Ancien Regimes of Europe.

When Charles I was decapitated in 1649, it marked the beginning of the end for the Absolute Kings of Divine Right and the Ancien Regime of England. At that time, the East India Company effectively controlled the economy of the Netherlands, but it had always wanted to move its headquarters from Amsterdam to the City in London. However, because Cromwell had disappointed his sponsors when he failed to establish a proper parliamentary system in England, they had had to postpone democracy for another 40 years until the circumstances were favorable for William and Mary to wear the crown.

In 1694, once established in the City at the helm of the Bank of England, investment in research and development (R&D) could start in earnest. Because they were sure to have their loans repaid in a timely and just fashion, they invested with abandon and launched what became known as the Industrial Revolution. Thanks to ready credit, the English economy became dynamic, and European know-how flowed into the country. The bankers then started financing infrastructure projects in order to facilitate tax collection, internal trade, commerce and exchange of ideas. However, developing road and canal transport didn’t happen overnight, and the Industrial Revolution had to wait for the steam engine to really get started.

Denis Papin, a Huguenot from Hesse, had developed the cylinder and piston concept as early as 1695, but the use of steam was not fully exploited until James Watt invented the condenser in 1765. The Industrial Revolution coincided with the creation of the Bank of North America and Elie Whitney’s mindboggling invention, the cotton gin with interchangeable parts, in 1781. The main industry of the times, cotton, had experienced a great leap forward with the invention of the flying shuttle in 1733, the spinning Jenny in 1764, and the spinning frame in 1769, but it was the use of steam power and the invention of the cotton gin that revolutionized the greatest industry of the times.

On the iron side of things, railroads started being built in early 19th century, but the rails were made with wrought iron and were not durable. Sir Henry Bessemer, another Huguenot, changed all that when he invented a steel making process in 1856. In his blast furnaces, air oxidized and raised the temperature of the molten pig iron, while a small quantity of molten pig iron containing manganese was added and converted the whole large mass of molten iron into steel in just minutes, without the need for any additional fuel. That’s when track started being laid non-stop across Europe and America. In 1876, limestone was added to draw out phosphorous and make the steel less brittle, turning it into the wondrous material we know today.

Samuel Morse invented the telegraph in 1844, Elias Howe, the sewing machine, in 1846, Graham Bell, the telephone, in 1876, Thomas Edison, the light bulb in 1879, Galileo Ferraris & Nikola Tesla, the A/C motor in 1888, and Charles Steinmetz, the A/C transformer in 1893. When George Westinghouse bought Tesla’s invention and started distributing A/C electrical current over long distances, the whole world lit up.

The Bank of England created in 1694 was the catalyst for the Industrial Revolution, but it didn’t get started until steam power became a functional everyday reality. But more was to come. Because the Bank of England was made up of dozens of private bankers, it didn’t speak with one voice, and though the bankers had become very powerful, they had also become very English, and very parochial. It wasn’t until the first genuine international banker created the Bank of North America in 1781, and officially took over the English monetary system in 1810, did the world have an international financial institution that spoke with one voice. Today, two hundred years after that takeover, we are the ones who enjoy the benefits of the great market economies made possible by that man and his dynasty.

12-GLORIOUS REVOLUTION

The word revolution is a banker’s term. It was used by the owners of the East India Company when they launched their first revolution, in England, in 1688. It was called the Glorious Revolution. A revolution is a well-planned, well-financed affair that succeeds and is permanent in nature. It is always part of a bigger plan for a better world. The Glorious, Industrial, American and French revolutions are all interrelated, and they opened the door to the great world we live in today. A war, an uprising, a rebellion, a revolt, or a military coup can only be called a revolution if it succeeds and is permanent in nature, in other words, if it has the international financiers’ approval.

When the owners of the East India Company decided to finance the construction of the chateau de Versailles, it was with the aim of destroying the Holy Roman Empire. Naturally, they started with the most obvious target, France, its crown jewel. The construction of the chateau was the first step in a long series of events that would lead to the French Revolution. Construction of the chateau began in 1661, and by 1678, it looked like the chateau we know today. Once things were well under way in France, the owners of the East India Company turned their full attention to the upcoming Glorious Revolution. In 1688, that revolution would give England a constitutional monarchy, and the world a new form of government called democracy.

After his father’s execution in 1649, Charles II of England had fled to the Netherlands where he had lived in exile until he had been invited back in 1660 after Cromwell’s demise. He subsequently wore the English crown from 1660 until his death in 1685. As the shareholders of the East India Company had expected, much of England grumbled under his rule because he was for letting Catholics sit in parliament, and because he had befriended King Louis XIV of France. The shareholders of the East India Company, who effectively ran the Netherlands, did their best to encourage the antipapist feelings, hoping to have him deposed and replaced with a constitutional monarch. When, in 1672, king Charles asked Louis XIV to do him a favor and declare war on the Netherlands, it was time to act and figure out a plan.

Since Charles II had no legitimate heir, his younger brother, James II, a catholic, was next in line. They would wait for Charles’ term to run out, while continuing to stoke anti-royalist feelings among English parliamentarians. Then, since James II had a daughter who was being raised as an Anglican, arranging a marriage between her and William III seemed to be a good long-term goal. As a Catholic, James II would be easy to overthrow, and when the time came, the crown would be handed to Mary who was next in line.

In 1677, the marriage between Mary II of England and William III of Orange was celebrated in St. James Palace, and it wasn’t a happy affair. At fifteen, an arranged marriage with a much older and repulsive William was not meant to make Mary happy, and she cried throughout the whole ceremony. She had a very unhappy life, especially while in the Netherlands, where she lived for the first eleven years of their marriage. William was a homosexual who spent most of his time leading a double life away from home, and Mary spent all that time in a castle on the outskirts of The Hague. She returned to England in 1688 after the “Immortal Seven” invited her and her husband to come to England and wear the crown. William landed in England with a small army, and he marched on London without hardly firing a shot. James II took off for France, and parliament subsequently declared the crown vacant. William and Mary were then both offered the crown after signing the Bill of Rights which precluded that they submit to parliament’s authority and have no catholic descendants. That series of events is known in the history books as the Glorious Revolution.

However, that was only half of what was to be democracy, England now needed a financial institution. And as it so happened, not about to throw in the towel, and wanting James II to reclaim the crown of England, the Pope gave the financiers the perfect opportunity to create the Bank of England. The French king’s powerful navy gave the English navy a good drubbing as it went about invading England by way of Ireland. Naturally, the English parliament was asked by King William to retaliate and build a strong navy. But since no public funds were available, and since the credit of William III’s government was non-existent, it was impossible for parliament to borrow the huge sums needed. The East India Company shareholders were waiting for just that moment. They readily offered to become private subscribers providing they be incorporated into a company that would be known as the Bank of England. The bank was to be given exclusive lending rights to the government, and it was to be the only entity allowed to issue bank notes or coin money. Once the conditions were accepted, the necessary funds were raised in a matter of days, and the private financial institution known to this day as the Bank of England was created

For the first time in the history of mankind, the bankers were sure of being repaid in an orderly and just fashion. Parliament got rid of the antiquated Farmers’ General tax collection system inherited from France and proceeded to develop the country’s infrastructure in order to be better able to collect taxes. The shareholders of the East India Company had wanted an autonomous parliament because they were banking on a human foible whereby the people’s representatives, once their political campaigns, elections and salaries properly funded, would want to prove their worth and do things before taxes were collected. Since the Bank of England’s shareholders, now established in the City and in control of the English monetary system, could accept or refuse to finance the parliamentarians’ projects, they indirectly controlled all important developments in the country. That was democracy then, just as it today, and it’s the owners of the East India Company who created the concept. Democracy can only work if the concerned country is indebted, and a democracy is always indebted.

If democracy has proven itself to be the best political system in the world, it’s because people representation and monetary control are separate. The people’s representatives manage things while the bankers decide what’s to be managed by increasing or decreasing the flow of credit. If the one who prints the money is the same as the one who spends it, that is, if the parliamentarians do the printing and the spending, the system can only implode.

11-VERSAILLES

 

France had so many indirect taxes, and they were so complex, that the king, who was forever broke, was quite happy to farm out the tax-collecting chores to accelerate cash flow. The Farmers General, as they were called, would buy a six-year lease for a price corresponding to the total amount of taxes they deemed they could collect in that period of time. Obviously, the estimates were always on the low side, but the king, forever short of money and anxious to get at these huge upfront sums of money, wasn’t inclined to negotiate to any great extent. As one would expect, since the Farmers General kept all the taxes collected and acted in the name of the king, they used very aggressive tactics in dealing with the citizens.

The Farmers General became fabulously rich, pocketing as much as half of the total taxes paid out by the citizens. They would also routinely coerce and blackmail the producers in order to buy their goods at ridiculously low prices, and then they would sell the same goods to city merchants at the other end at exorbitant prices. They were the most hated men of the realm and much of the bitterness was directed at the king, for they acted in his name. When a finance minister was to be named, they directly influenced the king in his choice, thus getting the most accommodating candidate. When Nicolas Fouquet was named Superintendent of Finances, the East India Company shareholders were offered a great opportunity.

Louis XIV was a born megalomaniac, and in 1661, he was humiliated by Nicolas Fouquet who was suspected of having doubtful dealings with the Farmers General. Fouquet had invited the king to his magnificent château de Vaux-le-Vicomte that he had just built, and the king upon seeing the magnificence and the beauty of the domain, not only envied his achievement but wondered where all the money to build it had come from. Smelling a rat, he confiscated Fouquet’s assets and threw him in prison.

The shareholders of the East India Company seized the opportunity and relieved the King’s rancour by making all necessary credit available through third parties so that he could build the most sumptuous kingly residence in the world, the chateau de Versailles. Louis XIV proceeded to hire the great artisans that had created the château de Vaux-le-Vicomte, architect Louis Le Vau, painter Charles Le Brun, and garden designer André le Nôtre, and construction began.

By this time, the owners of the East India Company were the masters of international trade and commerce and their navy ruled the oceans of the world. The shareholders of the East India Company were Jews and Huguenots, and although they were business men and bankers first and foremost, they harbored a festering hatred directed at the Holy Roman Empire, the politico-religious institution that had persecuted them for centuries. They were intent on bringing it down, and the obvious starting point was France, the cornerstone of that empire. In financing the construction of the chateau de Versailles, they were looking well ahead. They had found a way to divide in order to better conquer when the time came. By separating the seat of power from the people, Versailles was twenty kilometers from Paris, the king would become vulnerable. Eventually, Versailles would be perceived as a den of vipers living off the misery of the people, and the King would easily be brought down. The occult financing of the chateau de Versailles by the Amsterdam financiers was the seed that would develop into the French Revolution a hundred years later.

By 1789, bread continued to be the most important ingredient in a Frenchman’s diet. It was central to people’s lives, and though it was the corrupt Farmers General who controlled the supply of cereal and created famines, the bakers were the ones perceived as profiting from dearth and famine and making huge profits by selling this vital commodity at a high price. Bakers were often accused of hoarding stocks and were frequently assaulted. Being lynched became the occupational hazard of bakers. So, limiting the supply of cereal was a very easy way to create unrest in the major urban centers.

There was such unrest in the realm when the tennis court oath under the leadership of Mirabeau in June, 1789, the taking of the Bastille under the sponsorship of Louis-Phillippe d’Orléans in July, and the March on Versailles under the guard of Lafayette in October, were carried out. These incidents were obviously organized by well-paid East India Company agents, and the March on Versailles is perhaps the one that best shows that. In October of that year, a very odd crowd of transvestites went to Versailles to fetch the royal family, “the baker, the baker’s wife, and the baker’s apprentice” as their chant went. The untypically aggressive ‘ladies’ even entered the royal residence while Lafayette and his mounted guard made no attempt to stop them. How such an ungainly disguised group could go to Versailles, capture and bring back the royals to Paris with Lafayette’s National Guard standing by is a mystery that the history books fail to examine.

The East India Company was established in 1600 and was made up of patient and determined men. It took control of international commerce as early as 1624 when it established a foothold on the shores of the Hudson River in America and especially when it took possession of Cape Town in 1652. The owners created democracy by financing an independent parliament in 1689, and creating the Bank of England in 1694. Sure of having their loans repaid by the people’s parliament, they financed unlimited research and development which became known as the Industrial Revolution.

Following a hundred years of mindboggling growth and wealth, they were ready to launch the French Revolution in 1789. In 1810, even though the Bank of England was taken over by the banking dynasty that had created the Bank of North America in 1781, the transition was harmonious, and investments in R&D continued to grow exponentially worldwide. The dynasty that took control of the Bank of England and the City then is the same that rules the financial world today, and we should consider ourselves very fortunate indeed.