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.

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.

10-EAST INDIA COMPANY

 

In the Netherlands, William the Silent, also known as William of Nassau and Prince of Orange, was a robust champion of Protestantism who encouraged thousands of Jews, new Christians as he called them, and Huguenots, Christian Protestants from France, to migrate to Amsterdam. Thanks to this influx, Amsterdam became the trading capital of the world and the Dutch ruled the oceans for much of the 17th century.

Sephardim were money men while Huguenots were entrepreneurs, and together, they formed a formidable team. They created the East India Company in 1600, in London. but in 1602 they decided to move their headquarters to Amsterdam. Even though Jews and Protestants had been free to enter England, a development that had started under Henry VIII, the people were still very much brainwashed by the old ideas of the Roman Church. So, because the Marranos weren’t free to practise their religion, and because Protestants were still viewed as enemies, the company shareholders decided to set up their headquarters in Amsterdam.

Once established in Amsterdam, they got right down to business. In order to protect the North American fur trade, the company shareholders built a fort at the tip of Manhattan in 1609 which would become New Amsterdam in 1624, and later, New York. In 1652, they expanded and created a colony on the Cape of Good Hope in South Africa, in order to protect the spice trade with Asia. The Dutch East India Company ruled the waves, and its founders, Jews and Huguenots, became so rich and powerful, that they could start planning the demise of the Holy Roman Empire.

But they hadn’t given up on re-establishing the company’s headquarters in London, for England was across the channel from France and its economy had much more potential. However, before they could return, they would have to find a way to get rid of the papist kings and get a king that would accept parliamentary rule. As it so happened, there were strong anti-royalist feelings in the English parliament, and the word Catholic was starting to be used to distinguish the papist followers from the Anglicans. Because Charles I, a Catholic, had just been crowned after marrying the Catholic Bourbon Princess Henrietta, it wouldn’t be too difficult to finance an army that would answer to an anti-royalist parliament, defeat the catholic king, and force him to accept parliamentary rule. The country was ripe for civil war.

Oliver Cromwell came to the financiers’ attention in 1642, when he joined the roundheads, the pro-parliamentarians. At the outset of what became known as the English civil war, he distinguished himself militarily and was subsequently promoted to commander of the New Model Army. Over the next few years, the royalist forces were defeated, and when Charles 1, the divine right king, was captured following a battle in Scotland in 1645, he was handed over to the English parliament which was under the protection of Oliver Cromwell’s New Model Army. However, Charles refused to accept a constitutional monarchy and escaped. In 1647, he was recaptured, and in 1648, he was tried, convicted and executed. Cromwell then dominated the Rump Parliament created in 1649.

But Oliver Cromwell was a puritan fanatic who had been extremely aggressive towards Ireland and Scotland, both catholic strongholds. Not able or not wanting to work with the Irish and Scottish parliamentarians, he simply dissolved parliament. After assuming the title of Lord Protector of England, Wales, Ireland and Scotland, he turned the powerful English navy against the very financiers that had financed it, the shareholders of the Dutch East India Company. He wanted England to take charge of the Atlantic trade. Of course, that was not to be, and Cromwell was doomed.

When Cromwell died from natural causes in 1658, his inept son couldn’t hold the Protectorate together, and the Convention Parliament decided to recall the Catholic kings. During the Restoration period (1660-1688), two kings of divine right, the two sons of Charles I, James II and Charles II, ruled in turn and fought the East India Company for trade supremacy.

The Jews and Huguenots both in Amsterdam and in London had to find a way to put a stop to the fratricidal naval wars and especially to the rule of papist kings in England. An arranged marriage between William of the House of Orange and Mary of the House of Stuart would be a very good way to do just that. In the interim, the financiers turned their attention to France.