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.


14 thoughts on “The hidden history of modern banking

  1. Pingback: The Daily Climb-Monday, Jan. 30th, 2012 | The Daily Climb-Daily Posting Of Relevant Content

  2. Excellent post.

    Very useful information.

    You showed me some connections that i was unaware of.

    I was aware of the Banking sysytem’s plans for world domination but the History is facinating as well as corroborative.

    I don’t understand how a person can learn all of this and see what is being done today and not see the conspiracy of Banking; Military; and other Corporate interests; and the way they use Madison Av as their Propaganda Machine; the News and Information Industry as their Mouthpiece and the Government as their Enablers.

    This is my first visit to your site. I’ll take a look around. let me know if i make too much noise and wake the baby or anything.

    I can only imagine that we will speak again soon.

  3. The collapse of Western Capitalism/Democracy. Continued 2

    The parallel in European history of now is the 1500’s. Then Feudalism was collapsing, as was the hegemony of the Catholic Church. As alternatives Protestantism and Capitalism were in the ascendancy to serve as the social and economic system for the next 500 years. The power of the Fugger’s eventually gave way to the Rothschild’s and banking gained more and more power over everyday life.

    In the 1500’s the Catholic Church didn’t just fade away. It offered up the Reformation where it tried to reform itself. However, the Protestants had appropriated the term and Catholics had to use the term counter reformation and sent out its Jesuits and the Holy Inquisition to fight the ‘holy war’. The Protestant notion of the Presbytery (or rule by the Elders) became institutionalized in the extension of the franchise and the growth of democracy, which served as the social and economic system that survived until the present day.

    Today, in the present, it could be said that the banks and the markets are staging a financial coup d’état, as did White Anglo-Saxon Protestantism against feudalism and the Catholic Church in 1500’s. But as the fight back of the holy Inquisition failed, so I think will the current manifestation of financial market capitalism.

    It is clear from what’s been happening recently in the European Union, that the EU can’t stand up to the markets and resolve their sovereign debt crisis. What are these “markets”? They seem to be made up of investment banks, insurance companies, pension funds, and hedge funds that essentially buy and sell four types of assets: currency, stock, sovereign bonds and derivatives. I am told that each year the real economy (the production of goods and services) generates worldwide an estimated $45 trillion -the gross domestic world product. At the same time, in the financial sphere, the market move $3450 trillion in capital -76 times the total production of the real economy. The result is that no national economy, however powerful, can resist an assault by the markets once they have decided to launch a coordinated attack, as they have been doing for over a year now against the PIGS economies of Portugal, Italy, Greece, and Spain. These attacks on the Euro zone don’t come from the US, China, Japan, or Arab finance. They come from our own European banks – the same ones we bailed out in 2008. Now these banks are able to obtain funds from the European Central bank at 1% interest rates which they in turn lend out to countries like Spain and Italy for 6.5%, as determined by the ratings agencies of Fitch, Moody’s, and Standard & Poor’s. These are the same ratings agencies that got it so wrong in their assessment of the subprime mortgage market’s that led to the current crisis.

    Countries like Greece will not be able to get out of the financial mess they find themselves in. In this way the markets got what they wanted: its representatives now have direct access to state power without having to bother with elections. The market staged a coup d’état. The new prime ministers of Greece and Italy are bankers. Both have worked with the US bank Goldman Sachs, which specialises in placing its people in positions of power. Both are members of the Trilateral Commission. These technocrats are able to impose, whatever measures the ‘markets require’. (Privatisation, cuts, sacrifice and rolling back the welfare state). They can do what the political leaders didn’t dare impose because popular opposition would have been too intense.

    All this may seem unduly pessimistic. If real power does lie with the bankers then it puts things like the Arab-Israeli conflict into perspective as a little local difficulty. But as in the 1500’s, when feudalism and the Catholic Church were collapsing, new movements grew to take their place. We have to realise these new movements in our own age.

    • i didnt know that about the new prime-ministers of Italy and Greece. If they are members of the Tri-lateral commission, then i wonder if they serve a hidden agenda. That figure of $3450 trillion seems really high but then i guess this includes derivitives. 76 times the world ‘domestic’ ? product.. that doesnt sound healthy.
      Putin, the chinese politburu, and Brazil seem to be the only protaganists capable of insulating themselves from these immense market forces of the ‘illuminati’ banker elite. That is a damn shame because it is like being between a rock and a hard place. I dont see a happy ending, or way out.

    • Excellent comment on an excellent article.

      If the content of this blog continues as it is now; I suspect this will become a favorite of mine.

      Even though you have just begun; you seem to be starting with a bang.

      I have been blogging on Angrymanspeaks since Sept. 2011 and I believe you have as amny comments as I have had altogether.

      I write some pretty inflamatory stuff though not always of course and I have yet to attract the kind of informative; in depth comments that you have.

      Great work. I have twice visited and twice learned something from the article and then the comment.

      This is good because so often I find myself the one imparting information to others.

      It is refreshing and far more useful to learn rather than inform although I like both.

      I was watching Bill Mahr last night and he was going on about how OWS seems to be letting up in New York; perhaps because of the cold; and he made the statement that those left seem to be those who want to break windows etc.

      He feels that the time has come for OWS to go home and try to effect change through the current political system.

      It occured to me that; here as this famous Liberal; making proclamations that not only discourage the movement but that demonstrate a lack of understanding of the current world situation and especially that in the US.

      Does he actually fail to see that the system is owned by the Corporations; Banks in particular?

      Does he not see the Conspiracy of Wealth that is seeking to control the whole world to it’s detriment?

      How can a man who is in a position to have all of the information he does and assumedly has sourses of information that we are not privy to; fail to see the mutually supportive actions and policies of the Banks; the Military Industrial Complex; the Press; the Advertizing Industry; and the Upper Eschelon of the Republican and Democratic Parties?

      I realize that most of America is plodding along; too engrossed in the ever more difficult task of survival.

      I realize that most Americans will go like sheep to the slaughter because they can’t see the forest for the trees.

      But how can it be that a Simple Country Philosopher like myself sees the so obvious patterns that make visable; that which was designed to be invisable to us; the Manipulation of the worlds people and ours in particular; and yet Bill Mahr is blind to it and publically reccomends capitulation and submission to the very system that brought us to this pass?

      How can he really believe that effective change will be allowed to happen that way?

      How can he sleep at night knowing he is encouraging the American people to give up and bend over?

      The only answers I can arrive at are that Bill Mahr; the smarmy, sarcastic, smartass, Liberal who is never afraid to be irreverent and attack the most revered of American Institutions at will; is aware of the patterns and is aware of the Conspiracy.

      Of course he is aware. How could he not be?

      He is aware but as with all other Public figures and Political Leaders; he has been Purchased.

      He has been bought and paid for as surely as the Political system has been bought and paid for and if America listens to him or any other product of the mainstream media; no matter how Liberal they may appear; they will only be hearing what the Conspirators allow them to hear.

      Bill’s message is like that of the Apostles when Jesus told them he would be tortured and killed.

      “No Lord, this will not be your fate at all.”

      Relax; don’t worry; everything will be Ok if we just trust the system.

      Trust the politicians to enact legislation or amendments that take away the source of their wealth.

      Trust the 1%; who control and pay those Politicians; to just give in when we Trustingly present Congress with a Bill of our design; sponcered by a Legislator who knows that the Bill has no chance to pass; will be tied up in committee and by postponement for a lengthy study of the problem; and hearings to assesss the need for this Bill etc.; and will be killed in one way or another after the Politicians believe they have put on a convincing show of interest and concern.

      And Americans will say, “Well; the people have spoken” and go back to their individual Salt Mines to wait for another time; which will never come because this is all a fantasy of some gulible; inattentive, pathetic, cowardly, and/or traitorous mind.

      The one that resides in Bill Mahr’s head.

      I don’t know how he’s sleeping these days but after Judas Iscariot betrayed Jesus to the Sanhedren; he was so tortured in his soul that he hung himself.

      All Judas believed he had done was betray one good man. He hung nimself.

      I shudder to think what a man might do after he has betrayed 300 million people; women, children, babies, and men of course.

      But then you must remember that all Judas was paid was 30 pieces of silver.

      I’m sure Bill’s price was substantially more.

      NOTE: I should tell you that many times my comments end up on my blog as posts after some revision. Partly a time consideration but mostly because I want to share what I said with my own readers. Not all of my posts are of this nature of course but it happens.

      • apologies..Angryman.. ive just seen this comment tonight. I must have missed it. This is my first blog and i think i am missing a few tricks and not firing on all cylinders.
        As its a long comment, and ive had a couple of whiskeys tonight, i am going to read it properly tommorrow and get back to you
        Regards.. 3sieves

      • It sometimes seems like there is no political choice in the USA. Corporate America seems to own both the leading contenders in the republicans and the democrats. I am not american, but if i was i would vote for Ron Paul and want him to employ Bill Stills. They are both outsiders and would both kick the Federal Reserve out of America and issue their own currency rather than borrow each dollar from the Fed at interest. I think Ron Paul knows he cannot win , but is trying to gain enough support to bargain with Romneys nomination to lessen the Feds power. If that is the case, it will only get sidelined. On the other hand, i think that Obama is getting a suspiciously high campaign funding. He seems to have very wealthy backers for a democrat.
        I really seems to me that Mitt Romney and Barack Obama are on the same team. I remember my shock years ago as a teenager when my mother told me that nearly all the main soap powders that portrayed themselves in adverts as bitter rivals were actually made by the same company. That stayed with me because I realized that it was a microcosm of the lies, deceit, and duplicity that all corporations and governments seem to live by. I think the OWS are a breath of fresh air.

  4. What is it that I am saying here?
    Does it pass throughthe seive of Truth
    Is it Good?
    Does it pass the sieve of Beauty?
    Do I need to know it?
    Does it pass the seive of Utility
    Let Light & Love & Power,
    Restore the Plan to Earth.

  5. I was recently talking to an old friend of mine who lives in Scotland about the current banking and sovereign debt crisis. He said to me, “who is all the debt owed to?” I thought about it a bit and it seemed to have its roots in the sub prime mortgage market, where dodgy loans were made by banks to people who couldn’t afford to repay what they owed. This seems to have happened mainly in America and Europe. It got to the stage where the banks were beginning to fail and the governments in those countries decided that bank failure was not an option that could be tolerated, so governments bailed them out so that we have the current crisis of sovereign debt where countries such as Greece, Hungary, Rumania, Portugal, Italy, Iceland, Spain and Ireland are on the point of crisis and bankruptcy. But, who do they owe the money to?

    It would appear that they owe the money to the banks, which they bailed out and tried to save in 2008. Recently I wondered why the IMF and other institutions decided to bail out Greece for a time longer. I decided that bankers must know that Greece is going to fail eventually and that the current bail out will inevitably lead to Greece’s default at some stage in the future. I came to the conclusion that the banks are not quite ready for the default that will probably sweep through the majority of the countries that I’ve already mentioned, and had decided to bail out Greece to postpone this inevitable collapse of Western credit-based capitalism.

  6. Pingback: The hidden history of modern banking | Money Reform

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