So far, we have covered the history of money from its barter origins through the use of cowrie shells and bronze coins to how gold and silver came to represent money. We have also covered the most significant events and individuals that had the most impact on the evolution of money into what it was in the 19th century.
The fall of the Gold Standard
The gold standard of money, now referred to as The Classical Gold Standard, had a long run between 1815 and 1914. At its peak, this financial system had revolutionized commerce around the world just as much as it did finance wars, and it was generally accepted by the civilized world as the best system there was. However, the start of the World War I in 1914 proved to be too much for the gold standard of money to survive. A system that countries, businesses, and individuals around the world depended on collapsed, and it was mainly for two reasons:
- With the start of the war, countries wanted to avoid any extensive payouts in gold. The currencies whose values were pegged to the value of gold were quickly being rendered useless because banks were violating the rules that they themselves put in place and not honoring payments they were supposed to make.
- The lines between allies and foes were very thin during the World War I. It therefore made sense to most countries to hold on to the hordes of gold they had to prevent them from falling into the hands of enemy. Until that point, gold became literal money.
There were of course many other reasons why the gold standard went kaput, but these two are the most significant to the what money evolved into later. After the war in 1918, countries around the world got together and tried to revive the gold standard because it was the only financial system that had worked so well in history so far. By 1925, there were signs that the gold standard would be restored to what it was, but the war had taken its toll on the global economy and things would never be the same again.
There were multiple serious problems in the global economy that could just not allow the gold standard to return to its former glory. First off, for the gold standard to work, countries had to observe three vital rules: countries had to commit to fix parity values of their currencies to match their gold reserves; there had to be free movement of gold across borders; and there had to be two-way convertibility of a country’s currency. Even after the war, most countries could not commit to honor these three principles that would make the gold system work again for fear of inflation and deflation of their currencies.
The economy of the United States boomed in the years between 1920 and 1925, now plainly referred to as The Roaring Twenties. Afterall, the country had serious reserves of gold, and gold was money. Most European countries, on the other hand, were in serious financial problems because they had borrowed so much money from the US that they had problems paying back, and some had printed so much paper money that they did not have sufficient gold reserve to back its currency. There problem of unbalanced distribution of gold seriously affected the viability of the gold standard and many countries chose to abandon it altogether.
The Great Depression and Bank failures
In the second half of 1920s, the economic problems that European and many other countries that were dragged into the World War 1 began to slow down the US economy. The stock market crash of 1929, which marked the beginning of the Great Depression, and the subsequent wave of failures of national banks between in 1930 through 1931 resulted in crippling deflation of the currency. It was only natural that the public, having witnessed how fast paper money became worthless in Europe, began to hoard gold themselves. The Federal Reserve tried to mitigate the situation by raising interest rates in 1929, but this only made the situation worse as it caused companies to go bankrupt and worsened the depression.
It was around this time, in 1931, when United Kingdom became the first country to officially drop the gold standard. Other countries around the world quickly followed suit. Despite the United States clinging on to the monetary standard longer than most countries, the Great Depression was the final blow to the Classic Gold Standard.
People hoarding bullions, unemployment and free-falling prices forced President Roosevelt to take the United States off the gold standard in 1933 with the signing of the Gold Reserve Act. The bill prohibited the public from possessing most forms of gold. Instead, they were required to exchange them for paper money at a fixed price of $20.67 per ounce. Most people see this as one of the biggest heists in history where unknown individuals robbed the citizens of the richest country in the world used a government against its own people.
The Bank of International Settlements (BIS) catastrophe
One of the most prominent causes of the downfall of the gold standard was that there had been no central authority to control money, and in particular the movement of gold. This was not a problem before World War 1 because most countries and international banks stored their gold reserves in London, which made it an international monetary center by default. The movement of gold then was merely adjustment of figures in a book. However, after the war, each country wanted to maintain its reserves of gold and this proved a huge problem to international trade.
The gold standard of money may have ended officially in 1933, but it was until after the Great Depression ended in 1939 that countries around the world returned to the ‘new modified gold standard’. Having realized the problems posed by a lack of central authority to regulate the movement of money and the need for world powers to implement reparations against Germany after World War 1, the Bank for International Settlements (BIS) was formed in Base, Switzerland in 1930. The original founding governments were the United States, the United Kingdom, Belgium, France, Italy, Japan, Germany, and Switzerland.
Just as the global economy was recovering and the new global economy was making do with whatever monetary system different countries pitched, it was clear that a political solution was needed if normalcy was to be restored. The BIS was accorded the power to foster cooperation between the central banks of member countries.
However, within no time, it was clear that BIS was a ‘financial chameleon’ that had fallen under the appeasement illusion spell and that the bank was not living up to its mandate. For instance, it was discovered that in 1939 at the start of World War 2, BIS transferred 23 tons of gold it held on behalf of the national bank of Czechoslovakia to the Nazi Reichsbank. This is just one of the many known cases where BIS financed Nazi before and during the World War II and actually elevated Hitler to power. There are other claims that the people and banks who run the BIS and own majority of gold deposits loaned by governments accumulated more loot while Hitler ransacked countries, Banks and Museums across Europe.
The chaos of post-World War I persisted beyond the start of World War II. As Hitler and Nazi Germany wreaked havoc in Europe, the United States and other countries tried hard to stick to the new economic order of fiat paper on one hand and economic warfare on the other. Just like with the World War I, The United States entered World War II late and had ample time after the great depression to set the global agenda of the restoration of a practical and viable monetary order in the world. The idea ushered in a new age of a better ‘New Gold Exchange Standard’ that it hoped would be adopted as a renaissance of global trade and the fruits of division of labor.
The New Gold-Exchange Standard of Money
Before the United States into World War II, it served the critical role of supplying weapons and other war supplies to the Allies and collect most of the payment in gold, just as it collected interest on loans from World War I in gold. By the end of the war, a majority of the world’s gold collection was hoarded by the United States. All the countries that had depleted their gold reserves were not very enthusiastic about returning to the gold standard of money.
In 1944, the United States hosted delegates from 44 countries in Bretton, New Hampshire with the aim of introducing a new system to manage foreign exchange in a way that would not disadvantage the countries with no gold reserves. In the end, an arrangement was reached that while it was necessary to peg the value of each country’s currency to the value of gold, it would not be necessary for the countries to have actual gold reserves. Instead, since the United States held most of the world’s gold reserves, the countries would instead peg the value of their currency to the value of US dollar and not gold.
This new system of money was essentially the old gold standard of pre-World War I, but with a small tweak: the US$ would displace the British pound as the ‘Only and Key Currency’ from which every other currency would derive its value. With the value of US Dollar pegged to gold, it was agreed that governments only, not individuals, would be allowed to redeem dollars for gold currency. This is what is known as the Bretton Woods Agreement today.
To ensure the dominance of the dollar, the new owners of the Federal Reserve used the information they had about the market to manipulate the petroleum industry with the new global reserve currency, the US$, the same way Nathan Rothschild manipulated the Sterling Pound during the battle of Waterloo.
The PetroDollar scam
The ghosts running the Federal Reserve knew that the demise of the Gold Standard was imminent and the US Dollar had to take the place of gold as a reserve currency. They conspired to create an artificial demand of the US dollar in the global market to “expand the welfare and warfare” of the United States because their plan worked best in an environment of chaos and uncertainty. To make the most of this environment, they used their agents and puppets, President Nixon and his Secretary of States Henry Kissinger to offer military equipment and protection for the highly profitable oil fields of Saudi Arabia and in return they would be paid with the US Dollar and not gold for their oil, the PetroDollar.
In this agreement, the Saudis agreed to sell all its oil in US dollar currency only and they would invest any surplus proceeds from their oil in the US Securities. This essentially meant that whatever surplus money the Saudis made from oil, they would dump it all on the Federal Reserve.
However, despite all the money the US treasury allegedly made from the Saudi oil and other shady investments, by 1970, The United States did not have sufficient gold to cover the amount of US Dollars in domestic and foreign holdings.
The Federal Reserve and its opaque monetary policies
The Federal Reserve was founded by the US Congress’ Federal Reserve Act of 1913 and with the formation of The Federal Reserve Bank a year later, the first US Dollar was printed. When the Fed was formed, President Wilson wanted to have its central board appointed by the government but Congress was convinced that it was wise to have 12 private regional banks to represent the American public from diverse region. In the end there was a compromise that the board comprise of both bank representatives and a Board of Governors approved by Congress and the President.
It is also important to highlight how foreign wealthy bankers who controlled Europe long before the discovery of the New Worlds including Americas came to spread their influence all over the world. Long before America was free, it was a colony of the British Empire. Commerce in colonies controlled by European Kingdoms, which were both the North and South America, were mostly funded by Banks wholly or partly owned by the Rothschilds. This explains why when the American Revolutionary War began in 1775, it was not really about independence at first; investors just wanted less taxes imposed by the tyrannical King George III who was only trying to meet the terms of loans as set by the owners of the Bank of England. More importantly, American Founding Fathers learnt how to play the game: they realized that they needed to have control over issuance of money they wanted to use in the New World.
It is more surprising to note that the same people to whom King George II was paying taxes had to meddle in the formation of the union of the states of America. They were however very discrete and pulled the strings behind the scenes. It was even before the writing of the United States Constitution and Declaration of Independence that the Rothschilds began meddling with the United States of America.
Since its formation, the Federal Reserve has been the central bank for the United states. With the adoption of the United States Dollar as the world’s reserve currency, the Federal Reserve became the most important institution to the global monetary system. The unfortunate fact in this development is that the owners of the private banks that were key to the establishment of The Federal Reserve still held a lot of sway over the institution as they do today.
To truly understand who owns the Federal bank, you must find out who owns the banks that have the most shares in it. Member banks that hold stock in the Federal Reserve Bank have been earning dividends from their shares every year ever since the Federal Reserve was created. To make sure that their interests are represented, these banks are allowed to appoint six of the nine members of the FED. Since they form the majority of the board, these banks effectively control the Federal Reserve an do not report to the executive arm of the US government. After all, they are still the same dangerous people from the Napoleonic era who own governments and can decide wars and heads of governments.
There are allegations that in the mid 19th century, at their peak, the Rothschild family used their immense influence of the Bank of England to gain control of the most influential governments around the world. As the British Kingdom conquered the world and established colonies, private entities such as the Rothschilds were establishing behind-the-scenes influences that represent their interests in all governments around the world. In the US, for instance, the banks that played a role in the formation of the Federal Reserve were owned by the Rockefeller, Morgans, and Rothschild families. It is also likely that the first two were merely agents for the Rothschild family banks. After all, it is indeed true that there are only three countries where there are no banks affiliated or owned by the Rothschilds are Iran, North Korea, Cuba and supposedly Russia. By the way, isn’t it puzzling that US and Israel have suddenly centered its media propaganda towards Iran all of the sudden?
Since the Federal Reserve enjoys the monopoly of printing and distributing the United States Treasury Securities, it controls the US Dollar, and by extension the global economy. The sad part is that the public does not really know ‘definitively’ who ‘The Four Horsemen’ that owned the banks that started the Federal Reserves and who owns them now. These shadowy individuals or secret societies in full control of the global economy may have been the subject of President John F. Kennedy’s Address of April 27, 1961.
In his speech, JFK blatantly accused powerful ‘secret societies’ within and outside the US government of undermining the freedom of Americans and keeping them slaves to a financial system they can manipulate. It was then apparent that powerful forces that ran the FED were printing more bank bills than they were allowed to and as a result were causing serious inflation that forced people to pay higher interest rates and spend more on goods and services without getting more value.
Some sources claim that President JFK’s attempt to expose these people and their shady tactics is the reason he was assassinated two years later had to do with his attempt to take the US back to the Gold Standard of money and stop those who ‘own’ the current financial system. Many other US Presidents have tried to expose these secret organizations in the government and have been quoted calling out ‘traitors’ and ‘terrorists’ in the US political system. John C. Calhoun, the 7th president of the United States, was quoted saying:
“A power has risen up in the government greater than the people themselves, consisting of many, and various, and powerful interests, combined into one mass, and held together by the cohesive power of the vast surplus in the banks.”
Presidents Theodore Roosevelt, Woodrow Wilson, John F. Hylan who was the mayor of New York between 1918 and 1925, and former U.S. Army military intelligence officer Eric H. May have all made astounding revelations about the extent to which secret societies have taken control of the US government and the lives of everyone who depends on modern financial system.
Being the global reserve currency, the US Dollar is always in high demand around the world. The Federal Reserve, in cahoots with global financial bodies including Bank of International Settlements, holds a tight grip on the global economy. Conspiracy theorists believe that this has been possible for so long because IBS, the body that is supposed to encourage reserve transparency and regulate capital adequacy of the top central banks around the world, may be in place to do just the opposite.
Despite periods of uncertainty and global turmoil that threatened the global economy, the US Dollar has held on as the world’s reserve currency. Economists attribute this to the strength and size of the US economy as well as the dominance of the US financial markets. However, it is clear that the global economy, represented by modern-day USD-backed money, is not free and may be under the control of a few individuals. We cannot deny that the current financial system has brought the world far, but there will always be a problem with centralized money.
There is a theory that the number of people who run the world number less than 10,000. Between 8,400 and 8,500 actually. A feature video produced by an Australian Director calling himself “Ed from The Outer Dark” brought to light serious revelations about how the world truly works. Confessions by Ronald Bernard, an elite Banker from Netherlands prove that these few people control the actions of terrorists in extremist countries as well as intelligence agencies that are supposed to fight them. They do all this to keep the world distracted form who they really are and to keep everyone dependent on the current financial system controlled through banks.
The big question everyone should be asking an answer to is, is there really a way the world will free itself from the slavery of the Rothschilds and other secret societies with a firm grip on the global economy?
In the next article in the evolution of money, we will dive into credit and plastic money, and how modern banks have perfected the art of creating money from thin air by shifting figures on a computer screen. We will discuss credit and debit, mobile and digital money, and how the greed of a few individuals almost ended the world, again.
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