The Underlay of History
As mentioned, among the reforms and regulations which Roosevelt imposed upon the activities of banking in the Banking Act of 1933, is the Glass-Steagall Act, which kept investment banking separate from commercial banking. Roosevelt’s banking reforms held throughout the period of post-war economic history that we wrote about earlier, anchored by America’s gold reserves.
And we mentioned how the ending of this arrangement in the early 70s brought the end to that period of stability and distributed growth and a very serious era of politics about people, giving way to a much more ruthless economic paradigm and eventually the eroding of any kind of restriction on banking activities whatsoever. The whole sector ascended beyond the clouds leaving the politicians on Earth to manage things on their behalf.
We wrote earlier about the entrapment of the people of the Third World into debt slavery. The apparently thoughtless lending of huge sums to the Third World seems to have more of a rationale when considered again in the context of the story we’ve been following. As does the insanity of the arms race, driven to levels absurdly beyond a requirement for defence, and an enormous income stream for someone. Such a wasteful tragedy for the world.
Even in 1950, Albert Einstein could see where things were going and said:
The men who possess real power in this country have no intention of ending the cold war.
Kennedy meant to end it. Is that why he was shot? By the men who possessed real power?
The Bank of England, sort of nationalised in 1946, became very quietly privatised in 1977, in an arcane company structure whereby somehow its subsidiary owns it, and the subsidiary’s owners’ identities are protected. Anyway, that’s what we’ve received about this opaque world, and it needs some careful checking out, to which we’ll return somewhere else.
That’s just another snapshot of the story, as the last few pages have been. The whole story behind banking is rich and extraordinary if you’d come innocently to it as we’ve done. And it seems to us that, after a period of learning a little bit about this history, that all the historical stuff we were writing about earlier – the stuff you can read about in history books – needs now to be considered through the prism of central banking in order to understand the tangle of history as well as possible. It’s as if the history of central banking is an underlay of all the presented history; a parallel world, most of the time unseen, whose gravity pulls the tides of world history.
And this brief glance through the history we’ve been looking at, with all the crises and depressions and presidential and, indeed, ancient warnings about a concentration of wealth exploiting everyone else, distorting everything else, it is very clear that the world has been repeatedly revisiting this very same scenario of apparent financial apocalypse time and time again; and never learn anything, never remember anything; never see the next one coming until it happens. Banks had American central bank at the top of their to-do list for 137 years and never lost sight of it, surviving some of the great American presidential names, yet their warnings meant nothing to later generations.
It’s imperative for knowledge of such matters to be in the pool of public knowledge, because we really do get the leaders we deserve.