Westerners have been for generations infused with a conviction that a nation’s central bank must, under threat of great ‘moral hazard’, be kept separate and independent of that nation’s government. The reasons are unclear, but since this mythology qualifies as a biblical pronouncement, it is by nature not open to question. The proposition is, of course, nonsense. How can a country manage its affairs without having control of its own money and its own central bank? Think of a corporation having no access to its own money or credit, having to depend on an outside “unrelated and independent” third party for all funding, a party with no common interests whatever with this corporation, and with its own commercial interests often diametrically opposed to those of the company. Even worse, imagine the company having to “borrow” its own money from this independent source, and repay with interest. How could that possibly make sense? Welcome to the world of secret bankers and privately-owned central banks, like the Bank of England, of France and Germany, and the US Federal Reserve, the ultimate source of financial crises, of recessions and depressions, and of wars.
The history of economic turmoil and of wars has always revolved around those who control the world’s central banks. In fact, recessions and wars tend to have the same broad objective which is to put yet more money into those same hands. History is not short of documented evidence of the European bankers, primarily the Rothschilds but including eight families in all, not only inciting and fostering wars and revolutions but profiting by financing both sides of the conflicts. One problem after a war is that we have a (rich) victor and a (poor) loser. The rich victor may be easily able to repay his war financing with interest, but the poor loser is in a precarious position. Therefore, the war financing contracts typically contain a clause obligating the victor to permit the defeated country latitude to accumulate sufficient funds to repay its war debt in full – usually to the same banker or his brother or cousin. This may have been the origin of the expression “a win-win situation”. In any case, in addition to the huge profits from financing international conflicts, wars provide much opportunity for those bankers and their closest friends to purchase for pennies all the attractive assets of the newly-devastated losers, while also serving as a kind of grim warning to nations tempted to legislate too many restrictions on international capitalism.
Let’s consider the US Federal Reserve, the most well-known and possibly most hated of all privately-owned central banks. It was created by illegal legislation in 1913, giving it full control of the US money supply and credit and more or less the entire economy as well, its existence in violation of the very Constitution of the United States. The US government cannot, by virtue of this legislation, print its own money or issue its own credit. When the government needs money, it must borrow from the FED and repay with trillions in interest….