16-HAYM SALOMON

America kept popping up in Mayer’s mind because he saw the New World as a place offering a fantastic banking opportunity. Mayer knew the English were having trouble over there because he had learned through General von Estorff that they were seriously thinking about sending Hessian soldiers to the colonies. It seemed the colonials weren’t happy because the mother country wasn’t providing enough credit while gauging them with taxes. He just had to find a way to get firsthand information on what was really going on over there.

Mayer automatically thought of Haym Salomon who was presently working for him in Hanau. He invited him to Judengasse for a good schmaltzy dinner because he wanted to know what his wife Gutle thought of him before asking him to go to America. Haym was an extraordinary young man whom Mayer had befriended in Hanover. He was a Sephardi whose family had fled Portugal and settled in Poland. Haym had left what family he had in Poland, traveled through Europe, and had learned eight languages. While helping Mayer in Hanau, he had learned all there was to know about how to buy and sell bills of exchange and was getting ready to move on.

As they approached the north gate of Judengasse, they dismounted and left their horses at the blacksmith’s barn where Mayer kept his mounts and carriage. The guard at the gate recognized Mayer readily and saluted the two men as they entered. When they entered the ghetto, Haym couldn’t help but notice a crude drawing depicting Jews doing unnatural things to a sow, which included eating her excrement. Haym, a Sephardi, was taken aback, and he couldn’t help thinking that Ashkenazim must be spineless to let goys treat them that way.

Mayer knew what he was thinking and told him there was no use spending energy fighting such vulgarities. Since the Frankfurt Council turned a blind eye on such abuses, and thereby encouraged the lowlifes that perpetrated hate crimes, wiping the wall clean would only make things worse. He continued by saying that the age of enlightenment would soon reach the Hesse region, and the walls would come down. Mayer preferred becoming rich and powerful, and taking down the walls stone by stone with his bare hands when the time came. One engaged in battle only when one was sure of victory.

As they went down Judengasse, Haym wondered how people could live in such crammed conditions, with so much noise, so little light, and so many strange odors, while Mayer saluted everybody, addressing most of them by name, inquiring about their families, and wishing them well.

They reached the tall narrow house where Mayer lived, and where his wife was waiting for them. They sat down for dinner, and Mayer started the conversation by asking Haym what he thought of America. Haym answered that there seemed to be a lot of fertile land to be had, that the winters were harsh, and that there was a well-established Sephardi community in New York City. He had also heard that it was a good place for an ambitious young man who wanted to get rich. Mayer replied that he was getting a good feeling for the colonies from the newspapers he read, but that he’d really like to have first-hand knowledge. Then he asked directly if Haym would be interested in going to America. Mayer was willing to pay his passage and set him up as a shipping broker in New York City. Haym was to open a New York counting house that would work with the Rotterdam one run by David. The Sephardi community in New York would surely welcome him, and since Haym was a smart good-looking young man, he would have no problem finding a wife.

Mayer continued by saying Haym could count on his unqualified support, and that he would have all the money he needed. In the first instance, all he had to do was keep Mayer informed. If everything turned out to be like Mayer expected, Haym would then come back to Frankfurt to be debriefed, and they’d both decide what to do next. If Haym disliked New York City to the point of wanting to come back to Europe early, Mayer would not hold a grudge. All he asked was for Haym to give him fair warning if he so decided.

When Haym asked when Mayer expected him to leave, Mayer answered that winter crossings were very rough, and that it would be wise to leave as soon as possible. He hoped that Haym didn’t suffer from seasickness, for a westward crossing could take anywhere from two to three months.

Haym said he was more worried about New York’s cold winter, and that all he hoped for was to find a rich widow who had a well-built boarding house with a fireplace in each room.

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.

1-SYNOPSIS

We became bipedal monkeys around 7 million years ago. 3 million years ago, while in the African Rift Valley, we became intelligent, and when ocean levels allowed it, we migrated to Eurasia. 5 thousand years ago, writing developed and religion started being used as a control tool by autocratic demagogues. Military rule then followed with the Roman empire era. 2 thousand years ago, religious rule replaced military rule as the Roman empire’s military infrastructure was handed over to a religious group inspired by the teachings of Apollonius. Thereafter, the papist rulers’ intolerant and cruel ways, in direct conflict with the moral standards of Apollonius, were such that Jews and Huguenots (French protestants) suffered unspeakable atrocities. As time went on, these two persecuted groups were ever more determined to destroy the political and financial institution known as the Church of Rome. In 1600, they joined forces in a protestant and independent Amsterdam, and created the East India Company. They ruled the oceans of the world out of Amsterdam while they waited for an opportunity to establish their permanent headquarters in England, a country that still had papist kings in spite of Henry VIII’s shenanigans back in 1535. The shareholders of the East India Company arranged a marriage between Mary and Billy in 1677, and in 1688 sent the couple to England to wear the crown of a protestant constitutional monarchy. When the Bank of England was created in 1694, true democracy was born. But what is democracy?

For thousands of years, when Jews lent money to princes and kings, instead of being repaid, they were often despoiled, exiled or massacred, and as for the French protestant entrepreneurs, for hundreds of years, they weren’t allowed to carry on business for profit, and were often persecuted and even massacred by the country’s anointed king if they didn’t follow the dictates of the Church of Rome. With the creation of the Bank of England, the East India Company shareholders were now owners of the only institution allowed to lend money to the English Parliament. When parliamentarians wanted to get re-elected or launch projects, they had to go to the Bank of England for financing, for it was the only institution in the country allowed to print or coin money. If successful, the parliamentarians then collected the taxes in order to pay back the loans. For the first time in history, bankers were sure of being repaid in a just and timely manner. However, though people were free to vote for their representative and though that representative was free to try to get his projects underway, it was the bankers of the Bank of England who had the last word in who got elected and what was to be financed. That arrangement between a free voting people and private bankers would serve as a template for all democracies to come.

But all was not perfect, for the B of E was made up of dozens of bankers who were not entirely objective and devoid of greed and one-upmanship. They were mainly concerned with their own self-interest as English merchants. Fortunately, that’s when the greatest man who ever lived came along and started a bank in America. Mayer’s goal was to eventually establish a paper currency that could be used by all trading partners, and he accomplished this in total anonymity. The idea was to accumulate all the gold available in one place and use it to back up a currency that would become a world reserve currency for all future central banks. The gold would remain in one big pile for eternity. In time, the US paper dollar backed by this mountain of gold would displace the UK pound as a world currency and become as good as gold.

The first big chunk of gold bullion came from France when, in 1776, thanks to Benjamin Franklin’s genius as a diplomat, the French king sent around 500 tons of gold to help the American cause. It was enough gold to allow Robert Morris to create Mayer’s first bank in Philadelphia. In 1789, thanks to the most prodigious and humane real estate coup ever perpetrated, Mayer accumulated another 5000 tons of French gold, and stored it in the City. Since there was only around 15000 tons of gold bullion in the whole wide world at the time, this was enough gold to make his banker son in the City more powerful than all the other B of E bankers combined. In 1810, Mayer’s son, Nathan, controlled the monetary systems of the USA, the UK, and of all the countries that traded in those currencies. However, if more central banks or democracies were to be created, he needed to accumulate more gold. In 1812, Nathan sent Napoleon to Moscow in order to force the tsar to open his country to gold mining by private companies. In a very short period of time, thousands of tons of alluvial gold made its way to the City. Napoleon and the Tsar were paid handsomely in paper pounds while Nathan got the gold.

In 1863, a national banking system was established in the USA with the US dollar as its official currency, and in 1913, the US dollar became a world currency when the Federal Reserve Board was created. As of that moment, Mayer’s dynasty working out of the City in London controlled two major world currencies. In 1914, it had the wherewithal to get rid of all the ancien regimes of the world, what was left of the Holy Germanic Empire, along with the Ottoman Empire, China, Japan, India and Russia. WWI was a first attempt in getting it done. But because the task was so gigantic, it only succeeded partially and Mayer’s dynasty in the City had to repeat the process in 1939. In the meantime, in 1929, it got rid of the English pound as a major world currency, for dealing in two major currencies was counterproductive, and the US dollar was much more popular. WWII proved to be a total success when, in 1944, all the countries of the world gathered in Bretton Woods and signed an agreement whereby they accepted the US dollar as a world reserve currency. The US dollar was now as good as gold worldwide, and all the central banks of the world were now under one roof, so to speak.

Thanks to the gold mined in Russia, South Africa and in other parts of the world, perhaps as much as 200000 tons of the 250000 tons of gold ever mined lie today intact in one place, probably somewhere on the wharf in the City, in London. The US dollar has become as good as gold, we live in the best of all possible worlds, one where world wars are a thing of the past and credit is accessible to all. Meanwhile, we have inherited a world of leisure for which we are not genetically programmed. That is why, if we want to lead fulfilled and happy lives, it is imperative to understand how we got here. This blog is meant to help the willing reader in this endeavor, and will be divided in five parts.

1 – GLORIOUS REVOLUTION

2 – GLORIOUS MAN

3 – GOLD IN THE CITY

4 – GLOBALIZATION

5 – SEXUAL REVOLUTION