The assassination of George Floyd plunged the United States of America into an insurgency that has been seen more since the assassination of Martin Luther King. The old demons of the civil war between the northern United States and the southern Confederate States [1861-1865] resurface. At the time, the election of President Abraham Lincoln over a program to end slavery precipitated the Civil War. It floats in the air like a feeling of déjà vu.
And as police stations and Amazon depots soar, one wonders what would happen to the dollar if the Union collapsed? Bitcoin is in ambush …
7,000 different dollar bills…
Before considering the end of the dollar against the backdrop of the breakup of the Union, let’s do a bit of history by going back to the origins of the American institution in charge of the dollar: the Federal Reserve (EDF).
At the beginning of the 19th century, the conquest of the West by rail and the industrial revolution fueled a tremendous economic boom. The banking system was then very different… You will hardly believe it, but, at that time, the thousands of American banks printed all their own notes! There were as many banks as there were different bills, and these pieces of paper were to be exchanged for gold on demand. The good old Gold Standard.
The funding needs of this continent-country being gigantic, the banks did not hesitate to print much more notes than they had gold. But neither did the Americans hesitate to exchange their dollars for yellow metal as soon as it smelled bankrupt …
In this time of “real money” (since backed by gold), bank bailouts did not exist. Each bank was responsible for its loans, which caused great bank panics that shook the country roughly every 15 years.
Tired of seeing their fractional reserve systems (more banknotes than gold) collapsing, the bankers decided to set up a Central Bank. The first was launched in 1791 at the behest of the banker Alexander Hamilton, the first United States Secretary of the Treasury (Minister of Finance). The ” First bank of the United State Which was authorized to 20 years only.
Hamilton designed it as a hybrid bank, 80% of which was owned by private bankers and 20% by government. The capital was $ 10 million, which, you will admit, contrasts slightly with the $ 10 trillion of the FED Balance Sheet. Are you talking about inflation …
Twenty years after the creation of this first central bank, this illustrates Thomas Jefferson closed it. Here is one of his famous verbal protrusions:
“To preserve our independence, we must not let our leaders burden us with perpetual debt. ”
Thomas Jefferson, 3rd President of the United States (1743-1826)
The American bankers returned to the charge but their second Central Bank will be again abolished during the presidency ofAndrew Jackson, in 1836. The latter sought a second presidential term with the slogan “Jackson and no Bank”. This is a clearer political slogan than the “Yes we can” of Obama or the “Make America Great Again” who you know …
The loan sharks did not give up, however. They cleverly sponsored the National Bank Act of 1864 – during the chaos of the civil war… – which will introduce one and the same type of ticket for all banks.
By creating a universal dollar, the bankers neutralized the risk of bank run because what is the point of exchanging dollars for gold if all the banks use the same notes? Thanks to that sneaky risk pooling, bankers guarded against recurring bankruptcies. They could finally shamelessly turn the billboard.
The third attempt to create a central bank was the right one. The plot unfolded in the greatest secrecy, on the island Jekyll, property of Mr J. P. Morgan…
In 1910, a handful of bankers will plot for a week to take control of the finances of the United States once and for all and put in place the most successful slavery system of all time: The Federal Reserve.
Nelson Aldrich, Republican Party representative in the United States Senate, chairman of the National Monetary Commission, partner of J. P. Morgan and stepfather of D. Rockefeller Jr, was there. Journalists called him (not affectionately) on “Boss of the United States”. The Rothschild were also represented through Paul Warburg, the brain behind the operation.
What beautiful people! J.P Morgan, Rockefeller, Rothschild… The latter worked for a week to sketch the outlines of a Central Bank (of German and English inspiration). A bank that would act as lender of last resort to allow the rise of their Infernal inflationary debt machine.
“Give me control over a nation’s currency and then it doesn’t matter who makes the laws. “
Statement attributed to Mayer Amschel Rothschild (1743-1812)
With regard to the governance of the FED, it should be noted that the bankers did not immediately give themselves effective control of the FED. One should not draw attention … Thus, of the 7 governors, only one represented the interests of private banks. However, 20 years later, the voting system was changed to allow private bankers to take control. The FED council went to 12 governors. 7 appointed by the President of the United States and 5 from the 12 regional EDFs on a pre-established rotation.
And who are the shareholders of the regional EDFs? Bingo is the big private banks. By the way, the bank Goldman sachs provided a very, very large number of former employees to the FED board of governors …
I know what you say to yourself: “No problem since the majority of governors (7, with the approval of the Senate) are appointed by the President. “. Certainly, but it is enough of a single corrupt president so that power passes almost definitively into the hands of bankers. The reason being that governors can stay in office until 14 years old and that the President of the United States (term of office 5 years) can only change one governor once every 2 years. The devil is in the details… Bankers have the habit and the advantage of long time to advance their pawns …
To sum up, the ” Federal Reserve gives the illusion of being a public body run by the United States government then that she has nothing ” Federal “… And by posing as a lender of last resort, it has made all the immortal banks (those who are sacrificed, like Lheman Brothers, are purposely…).
Consequence: while inflation was only 3% in the first 120 years existence of the dollar, it has been 2,380% in the hundred years following the creation of the FED.
“I am the most unhappy of men. Without knowing it, I ruined my country. A credit system has taken control of a large industrial nation. Our credit system is centralized. “
Woodrow Wilson, President, regretting his role in creating the FED
Bitcoin and secession
It’s making plans on the comet to bet on the secession of certain states against the backdrop of civil war (even if it looks more and more…). But let’s admit that the Union is falling apart. What about the dollar?
We can draw a parallel with the euro. What about the euro if Italy or Germany slam the door?
The single currency is a Frankenstein creature made up of countries with different industries, cultures, languages, histories. It would take a whole article to properly explain why the Euro is doomed to fail, but, in short, the root of the problem is the lack of budget transfers between countries. It is futile to believe that Germany will agree to pay for Greece as New York pays for North Dakota.
To put it another way, if Texas declares its independence, it will not be to continue to pay the pot of the less wealthy states. If the Eurozone is on the brink of implosion, it is precisely because some countries ” profit Of the single currency to get into debt (they really don’t have much choice). So, if the Texans leave the Union, they will adopt their own currency.
The Federal Reserve would not survive a dislocation of the United States neither did the greenback. The US empire would falter because it is not the export of its Hollywood “culture”, the big ears of the NSA or its 700 military bases outside its territory which are its main source of power abroad. No, its main asset is the petrodollar and the control of the SWIFT network (which infuses all international banking transactions).
Let’s finish by recalling that the Dollar is the first foreign exchange reserve in the world (60%). A domination that is eroding relatively quickly since the dollar’s share in foreign exchange reserves was 84% in 1971. Still some time and we will be under 50%.. By abandoning imperialist financial control, the United States would cause a colossal air hole in which Bitcoin – the ultimate store of stateless value – could be engulfed.
Let it be said, what is happening on the other side of the Atlantic is a general disgust in the face of capitalist fascism as a whole. The media brainwashing to entertain and divide couldn’t go on forever. The putrid consumer ideology fueled by the looping broadcast of capitalist mirages on television screens has given rise to frustration which finally comes to the surface.
Black or white, the new generations wake up unemployed, in a sham of democracy and forced to pay off the debts of racist seniors who have squandered all their oil in a decadent orgy. And as she slowly learns that the earth is turning into an oven, the billionaires play astronauts to go and live on Mars …
And are we surprised?
Child of Satoshi, the alchemist who turned a cryptographic algorithm into gold.
I’m talking about monetary geopolitics, not shitcoins.