Monday, February 16, 2009

g.h.kirsch: The Greenback Dollar

Lest you think our current financial crisis is unprecedented, it's not. These crises have been occurring since the Dark Ages; probably earlier. They always are tied to the struggle to create and control money, and profit from the same.

And that struggle is always a contest between the citizenry and those whose power is seated in the ability to use their wealth to manipulate economies and perpetuate their power over the citizens.

In 1861 Abraham Lincoln, needing money to finance the war effort, went with his secretary of the treasury to New York to apply for the necessary loans. The bankers, underwritten by the European Money Trust, offered loans at 24% to 36%. Lincoln declined.

He turned to an old friend, Colonel Dick Taylor and put him in charge of solving the problem of how to finance the war. Taylor's solution? "Just get Congress to pass a bill authorizing the printing of full legal tender treasury notes... and pay your soldiers with them and go ahead and win your war."

When Lincoln asked if the people of America would accept the notes Taylor replied, "The people or anyone else will not have any choice in the matter, if you make them full legal tender. They will have the full sanction of the government and be just as good as any money; as Congress is given that express right by the Constitution."

Lincoln tried this solution and printed 450 million dollars worth of the new bills using green ink on the back to distinguish them from other notes. They were forever to be known as “greenbacks.” And the international banking cartel not only received no interest from the Union side, collecting from the Confederates was some fun.

Abe said,"The government should create, issue and circulate all the currency and credit needed to satisfy the spending power of the government and the buying power of consumers..... The privilege of creating and issuing money is not only the supreme prerogative of Government, but it is the Government's greatest creative opportunity. By the adoption of these principles, the long-felt want for a uniform medium will be satisfied. The taxpayers will be saved immense sums of interest, discounts and exchanges. The financing of all public enterprises, the maintenance of stable government and ordered progress, and the conduct of the Treasury will become matters of practical administration. The people can and will be furnished with a currency as safe as their own government. Money will cease to be the master and become the servant of humanity. Democracy will rise superior to the money power."

The solution worked so well Lincoln was planning to adopt this as a permanent policy if he was reelected. This would have been great for everyone except the International Money Trust who quickly realized how dangerous this policy would be for them.

In 1876, Otto von Bismark, then chancellor of Germany, wrote, "The division of the United States into federations of equal force was decided long before the Civil War by the high financial powers of Europe. These bankers were afraid that the US, if they remained as one block, and as one nation, would attain economic and financial independence, which would upset their financial domination over the world."

Lincoln's opposition to the central banks financial control, and opposition to a proposed return to the gold standard, is well documented. He would certainly have killed off the national banks monopoly had he not been killed himself only 41 days after being re-elected.

If you want to measure yourself against Mr. Lincoln, Mr. Obama, take a lesson from history. End America's debt slavery. Why should we spend nearly one half of the taxes we raise to pay interest to lenders we have allowed to create the money we borrow? In all candor, doesn't the current insolvency of these banks, and for that matter the Fed, make it abundantly clear we've been borrowing from ourselves all along?