Chapter 4 2. The era background of Rothschild's start

Those few who understand the system (check money and credit money) are either very interested in the profits the system generates or are very dependent on the handouts (politicians) from the system, and this class of people will not object our.On the other hand, the vast majority of the people are not intellectual enough to understand the enormous advantages of capital derived from this system, and they will suffer oppression without complaint or even the slightest suspicion that the system is damaging their interests.Rothschild The old Rothschild grew up in the era of the rapid development of the industrial revolution in Europe and the unprecedented prosperity of the financial industry. Brand-new financial practices and ideas radiated from the Netherlands and the United Kingdom to the whole of Europe.With the establishment of the Bank of England in 1694, a far more complex concept and practice of money was created by a group of adventurous bankers.In the one hundred years of the seventeenth century, the concept and form of money have undergone profound changes, from 1694 to 1776 Adam.When Smith's "The Wealth of Nations" came out, the amount of banknotes issued by banks exceeded the total amount of metal currency in circulation for the first time in human history.The unprecedented huge financing needs of emerging industries such as railways, mines, shipbuilding, machinery, textiles, military industry, and energy generated by the industrial revolution and the ancient inefficiency and extremely limited financing capabilities of traditional goldsmith banks have created increasingly strong contradictions .Emerging bankers, represented by the Rothschild family, seized this historically important opportunity and fully dominated the historical trend of the modern financial industry in a way that was most beneficial to them, while the fate of all others was in jeopardy. Not or unconsciously determined by the system.

Two civil wars and political turmoil since 1625 have emptied the British treasury. What he was facing was a mess, and coupled with his ongoing war with Louis XIV of France, William I was begging for money almost to the point of starvation.At this time, with William.The bankers led by Patterson proposed to the king a new thing learned from the Netherlands: the establishment of a private central bank︱Bank of England to finance the king's huge expenditures. This privately owned bank provides the government with 1.2 million pounds in cash as permanent government debt, with an annual interest rate of 8% and an annual management fee of 4,000 pounds, so that the government can immediately raise one hundred thousand pounds a year. One and two million pounds in cash, and never have to pay back the principal!Of course, the government has to provide more benefits, which is to allow the Bank of England to issue bank notes recognized by the country.

It had long been known that the most profitable thing for goldsmith bankers was to issue bank notes, which were essentially receipts for gold coins deposited with goldsmiths by depositors.Due to the inconvenience of carrying a large number of gold coins, people began to use the receipts of gold coins to trade, and then exchanged corresponding gold coins from goldsmiths.Over time, people felt that there was no need to always go to the goldsmith to deposit and withdraw gold coins, and these receipts gradually became currency.Clever goldsmiths and bankers gradually discovered that only a few people came to withdraw gold coins every day, so they began to quietly issue more receipts to lend money to people in need and charge interest. The goldsmiths banks took back the IOUs and then quietly destroyed them, as if nothing had happened, but the interest was firmly put into their own pockets.The wider the circulation and acceptance of a Goldsmith's bank receipt, the greater the profit.The circulation and acceptance of banknotes issued by the Bank of England are far beyond the reach of other banks. The banknotes recognized by these countries are the national currency.

The cash share capital of the Bank of England is recruited from the public, and those who subscribe for more than 2,000 pounds are eligible to become directors of the Bank of England.A total of 1,267 people became shareholders of the Bank of England, and 14 people became directors of the bank, including William.Patterson. In 1694, King William I issued the Royal Charter of the Bank of England, and the first modern bank was born. The core idea of ​​the Bank of England is to convert the private debts of the king and members of the royal family into permanent national debts, mortgaged by the taxation of the whole people, and the Bank of England issues a debt-based national currency.In this way, the king has money to fight or enjoy, the government has money to do what he loves to do, and the bankers have released the huge loans they have been thinking about day and night and received considerable interest income. It seems to be a happy situation for everyone. Only the taxation of the people is pledged.Thanks to such powerful new financial instruments, the British government's deficit soared. From 1670 to 1685, the British government's fiscal revenue was 24.8 million pounds, from 1685 to 1685. Government revenue more than doubled to £55.7 million by 1700, but the British government's borrowing from the Bank of England skyrocketed by 17% from 1685 to 1700. Doubled, from 800,000 pounds to 13.8 million pounds.

Even better, this design deadlocks the issuance of national currency and permanent national debt.In order to create new currency, the national debt must be increased, and paying off the national debt is tantamount to destroying the national currency. There will be no currency circulation in the market, so the government will never be able to pay off the debt. Due to the need to repay interest and economic development, it will inevitably lead to More money is needed, and the money has to be borrowed from the banks, so the national debt will only increase forever, and the interest income on these debts will all fall into the bankers' pockets, and the interest payments will be borne by the people's taxes!

Sure enough, since then, the British government has never paid off its debts. By the end of 2005, the debts of the British government had increased from 1.2 million pounds in 1694 to 525.9 billion pounds. , accounting for 42% of UK GDP.eight%. From this point of view, for such a huge sum of money, if anyone dares to stand in the way of privatizing the National Bank, the risk of beheading a king or assassinating several presidents is really worth taking.