There is a growing acceptance of a belief that the economic, political and social problems of the world have been caused by failings in the international banking system. The system seems to require the monopoly or oligarchy of resources in order to function. This becomes a barrier to us sharing resources more evenly throughout the world. The machine requires continual growth in the economy and the money supply and an increasing spiral of debt. This supports a society that has to be indoctrinated in a culture of both greed and envy in order that growth in the money supply might function. We know the price of everything and the value of nothing. We are left unable to see the value of anything in our world except through the faulty prism of markets. A Trader might tell you that this is intrinsically the way things are. The banking & financial system and the current culture of corporate capitalism are the most efficient and effective systems. They would say that they are the only systems that would work on a global level, and that any other vision has to seen through rose-tinted spectacles because it is unrealistic.
The question is whether this is true, or is it a case that the current financial and banking model is flawed. Is the real problem that we took the red pill when we disregarded our spiritual & religious teachings and embraced compound interest on that which we loaned and perpetually inflated our money supply. Perhaps this is the point where the paths of price and value separated.
The Knights Templars acted as the worlds first bankers; in that you could deposit at a Templar preceptory in London and make a withdrawal at another preceptory in say Antioch. King Philip the Fair of France was supposed to have broken them because of the power they amassed this way. After the Templars, the de’Medici family came to power as European bankers in the 1300 and 1400’s. After that, from about 1500 onwards. you get the ascendancy of the Fuggers. This co-incided with the birth of the capitalist system and the growth of Protestantism. It also marked the rise of the Duke of Burgundy. At first he was Duke of the borderlands between France and Germany. Then, unexpectedly he became the Heir to the Habsberg Dynasty and Ruler of the newly created Spain. This was Charles the 1st of Burgundy, or Charles V of Spain and the Hapsburg territories. With financial support from the Fuggers and their banking system he was able to buy the Electors of Germany and he became the “Holy Roman Emporer”. He ended up the Ruler of the European Empire but was now in hock to the Fuggers. Following the decline of the Fuggers through a series of bad investments the torch passed to the Rothschild family. Banking had returned to its Jewish roots.
Personally I think the real history of banking is hidden. It is more about the evolution of the acceptance of previously proscribed banking services. The evolution is about those unacceptable ‘black arts’ banking services evolving from local personal trades to international leveraged money issuing . It is very similar to the changeover from the trafficking of proscribed drugs being unacceptable, and then evolving to become an accepted source of funding for many state intelligence services.
In Judaism, Christianity, and Islam; the making of interest is proscribed. The law against charging interest goes back to Exodus 22: 24-25, “If you lend money to one of your poor neighbors among my people, you shall not act like an extortioner toward him by demanding interest from him.” This prohibition is repeated 22 times in the Old Testament. Proverbs 28:8 says, “He who increases his wealth by interest and overcharge amasses it for someone else who will bestow it on the poor.” Psalm 15 says, “Yahweh, who can find a home in your tent, who can dwell on your holy mountain? Whoever lives blamelessly, who acts uprightly, who speaks the truth from the heart, … who asks no interest on loans, who takes no bribe to harm the innocent. No one who so acts can ever be shaken.” The Law of Moses and the Prophets, ‘the Old Testament’ was quite specific about its proscription of seeking interest. No other financial transaction was so thoroughly denounced or forbidden. Charging for financial advise and consultancy was allowed. Financial transaction service charges for the safekeeping, transportation and exchange of wealth were allowed. No it was specifically just the earning of interest on making loans that was forbidden. Why? Perhaps the writers of the sacred Law had a prescience of the future institutionalization of Greed if usury [the earning of interest] were allowed into the monetary system. Perhaps they had knowledge and experience of usury corrupting the system in the past. Or perhaps, this was in fact the Divine inspiration of Jehovah seeking to protect his people from the institutionalization of greed, so that greed remained purely a personal life choice.
Islam still observes these laws as Sharia. Islamic banking is religious ethical and does not incorporate interest on loans. In Judaism, the Sadducees changed the interpretation to allow the making of interest in transactions with gentiles. Christianity alike Islam completely forbade it, however they tolerated to a limited extent this practice among Jews living in Christendom. This toleration developed into a habit and reliance for venture and start up investments. Jewish moneylenders tended to live and work from specific zones or enclaves in which they felt comfortable and safe within their community. Venice, Genoa and Florence were the biggest such centres for these moneylenders, and they tended to frequent certain public benches where they could be approached by Gentiles. The Italian word for ‘bench’ is ‘Banco’ ; hence the word ‘banking’ was invented. The criminal penalties for banking/money lending were severe for both the jewish moneylender and the gentile, but bribery and lookouts protected them. Moneylending was a necessary evil and exploded into big business throughout the period of the Crusades which helped Venice grow into a main trading hub.
During the Crusades the Templars grew into a continental organization. They ran caravans and had one of the best equipped Mediterranean fleets. They held and maintained many secure castles, forts, and strongholds along the main pilgrimage routes. Like Islam, the medieval christians were obliged and expected to make one pilgrimage to the Holy Land in their lifetime. If you chose not to go, you were expected to finance in full the journey of others to go in your place. These inter-continental pilgrimages became big business. The Templars would provide safe passage to the holy land, accommodation and board and protection throughout as they had pledged in their charter. They arranged financial sponsorship of pilgrimages for those that declined to go and during Crusades they would take payment to recruit military supplies, pack horses and porters and foot soldiers for the barons, knights and freemen gentry that had volunteered to join the crusade. Because the Templars had become so militarized and effective as a fighting force, they would capitalize and charge fees for transporting shipments of gold and silver between their different strongholds and on behalf of state or business interests. As this trade developed, one Temple would issue a certificate bond for gold which would be honoured at another Temple on the other side of the continent. This cut down the need for protecting individual treasure caravans. They were allowed to cost in an insurance charge to cover the cost of losses incurred in transport. They were allowed to charge for storage and safeguarding treasure in their many strongholds. All these financial charges were allowed by the Church as they did not conflict with the Bible scriptures. The Templars never engaged or allowed money-lending or the charging of interest on loans.
The true successor of the Templar financial and transportation services was to be the insurance underwriters that used to operate from the Lloyd’s coffee houses in London.
One of the main successors of the Temples stronghold safeguarding and coinless transactions business was to become the Banco de Piazza de Rialto. However this bank also engaged in money-lending. This was the first bank to operate coinless transfers of wealth to other branches. More importantly, it introduced the new principle of leverage. They kept their safeguarded wealth as a 12% deposit against interest bearing loans. A number of bad loans led to the collapse of this bank but the principle of leverage had been born allowing an 8 fold growth in the money available as a loan. This use of leverage became suitable to making very large loans to royalty and governments. The Bank of England was originally a joint stock company formed to create a large leveraged loan to the english government.
Money-lending at interest or usury remained forbidden by the church. It was the Giovanni Medici who first made the principle of money-lending acceptable by creating a chain of pawnbrokers who issues loans against the collateral of exchanged goods. He charged for continued storage until the loan was repaid which represented the payment of interest. At a higher level of society , he took as exchanged collateral shares in properties and businesses charging for this service in lieu of interest. He had found a way around the Usury laws which the Fuggers would exploit even better. They would hold shares in mining interests until the principle loan had been repaid. In the meantime they would avail themselves of a major share of the operating profits in lieu of interest.
The Fuggers also introduced the link between banking and mining. Mining required large capital investments which could often fail to be recovered. The Fuggers grew in expertise of maintaining profitable mines. Charles V of Spain gave the Fuggers the rights to the profits and maintenance of his and mercury and silver mines in return for their provision of the large bribes required to secure the title to the Holy Roman empire. The Fuggers were instrumental in supporting the silver standard in the issuance of money. Governments could issue money based on their deposits of silver held. Later when silver flowed in from the mines of South America, the world experienced the first known case of inflation. AtFirst, nobody could understand why the value of money seemed to be mysteriously decreasing. It turned out to be the huge addition of south american silver was inflating the money supply.
The Rothschilds were successors to the Fuggers and they understood inflation. They realised that the collateral used as the deposit against the issuing of money had to be tightly controlled against an inflated supply. Nathan Rothschild was on record as saying that the issuance of a country’s money supply was the greatest source of income. With all the previous lessons learnt from his financial predecessors, he encompassed all practices of Usury, coinless transfer of wealth, leverage, and monopoly in this venture. Through dominance and control of the Bank of England, he would loan the government its money supply at interest against the collateral of its taxation base. The loans in the form of bonds would be issued to lending banks who would use those bonds as 12% deposit leveraging out 800% of this amount as further interest bearing loans to smaller lending banks. The Rothschilds found that they could control a government through its national debt to them, and that they could feed the debt ever higher by manipulating politicians into wars and an ever-increasing spiral of debt and subsequent inflation to the money supply which would be issued at payable interest to them. They had developed Usury, the ‘black art’ of finance on an all together titanic scale. The only inevitable conclusion to them would be a world government with a world treasury and a single world currency and they would represent the world bank issuing the money supply at interest.