central banks

The Great Myths that Never Die: Rothschilds & Petrodollar | Armstrong Economics

Posted on by johnbarleycorn12

The two major myths that I get asked about all the time are the Rothschilds and whether pricing oil in yuan or euro will cause the dollar to collapse. I think I know something about the Rothschilds. I was even offered an investor back in the 1980s who wanted to buy into the company, and it was one of the Rothschilds. Nevertheless, it seems as though these legends live on for centuries and no one bothers to review the evidence. The Bible of the Rothschild conspiracy comes from “The Creature from Jekyll Island.” This popular book is probably the most distorted review of history I have ever encountered. It contains a quote that is often attributed to Mayer Rothschild, and I dare to find anyone who can come up with this quote that preexisted the publication of this book. I believe it was just made up. The quote claims that Mayer Rothschild once said: “Let me issue and control a nation’s money and I care not who writes the laws.” The reason why this quote is fake is rather clear. The US did not begin to issue paper money until 1861, nearly 50 years after his death. It wasn’t until 1921 when the Bank of England gained a legal monopoly on the issue of banknotes in England and Wales. The entire authority to issue banknotes started with the Bank Charter Act of 1844 when the ability of other banks to issue notes was restricted. The first banknotes were originally hand-written and were merely like checks. It was not until 1725 when cashiers had to sign each note and make them payable to someone. Actually, printed banknotes at the Bank of England began in 1855, which was about 40 years after Mayer was dead. The quote was made up to justify this idea that the Federal Reserve was evil and owned by bankers who could create money at will. The entire problem was completely distorted, for the ability to create an elastic money supply during a recession and the Fed would be able to buy corporate paper which was redeemed upon expiration. It was World War I when Congress instructed the Fed to buy government debt to fund the war and never restore the structure to what it once was. Hence, this fake quote by Mayer predates a central bank creating money, and it appears the person selected was dead so there could be no challenge. It has been used to convince everyone that central banks are evil and they are merely the puppets of the Rothschild family who control the world. The Rothschilds lost their power as did the Medici. They have been replaced by Goldman Sachs, which is affectionately called “Government Sachs” among professional dealers and traders. All these claims that the “petrodollar” is going to collapse are a total joke. Oil is less than 10% of world trade. These people are living in the ’70s. Hey, cut the hair and get rid of the bell bottoms. It’s 40+ years later! There is not even an attempt to offer a true honest analysis of the subject. Just look at the figures. The oil and gas drilling sector make up between 4.6% and 6.5% of the global economy. The FX market DAILY trading volume is about $5.3 trillion,which dwarfs the equities and futures markets no less oil and gold. Just look at the numbers.
— Read on www.armstrongeconomics.com/world-news/conspiracy/the-great-myths-that-never-die-rothschilds-petrodollar/

Central Banks v Clearing | Armstrong Economics

Posted on by johnbarleycorn12

Delos, First Central Bank QUESTION: Dear Martin Wonder if you have any insights as to the history of the bank clearing process. Was the clearing process created mainly so banks could play games and earn interest with peoples’ money with the reasoning that it was to prevent money laundering? With technological advances today, one can accept an hour or two for automatic name and account number checks to happen but 3-7 days seems ridiculous. Any insights to the creation of the clearing process would be enlightening. Thank you again KW ANSWER: The function of bank clearing began with giro-banking, which originated in the Temple of Delos in Greece. The term refers to the circulation of money. It originated where you could write a check to one person and transfer the payment to their account at the same bank. Effectively, in ancient Greece, you would have an account at the Temple in Delos and instruct a transfer to their account in the Temple. The Romans adopted this concept and thus Roman banking was born. A central bank emerged after the Dark Ages in the early modern history as a government or state-owned banks. The Dutch were pioneers and financial innovators who not only created this state banking concept, but they also invented insurance. The Wisselbank was the first such bank in Amsterdam which was founded in the Dutch Republic during 1609. The Wisselbank became the model of the central banking system and it spread throughout Europe; first in 1668 in Sweden known as the Sveriges Riksbank and then the Bank of England in 1694. When smaller private banks began to pop up, the state-owned banks emerged as clearing banks where transfers between the accounts at the central bank took place the same as they did between accounts in ancient Delos. The Wisselbank actually collapsed in 1790 after it was revealed that the deposits have been used secretly to fund the Dutch East India Company. The manipulation was that they represented themselves as just holding money for safe-keeping. They did not lend money out. So when the bank failed and they had been using the money to fund the Dutch East India Company, the city had to bail out the bank and stand behind the losses. To eliminate cash, the ECB has a secret project to provide instantaneous transfers for each transaction. Therefore, the central bank was simply a state-owned bank whereas a clearing bank was one where all banks must clear transactions.
— Read on www.armstrongeconomics.com/history/central-banks-v-clearing/

Central Banks Looking at Creating Their Own Cryptocurrencies | Armstrong Economics

Posted on by johnbarleycorn12

The IMF has recommended that all Central banks should issue their own cryptocurrencies. Indeed, they are looking at using Block Chain to keep track of taxes and to enforce negative interest rates with cryptocurrencies which would allow them to impose negative interest rates whenever necessary. With adopting cryptocurrencies that governments would control, we will come one step closer to losing all our freedom. Central banks could enforce negative interest rates with cryptocurrencies and thus people would find their accounts just garnished. This technology is also causing those in hunt of tax revenues to lick their lips. The issuance of digital currencies would allow central banks to remain in control of the money supply far more so than they are today. Sweden is moving forward and there we see that the use of cash is rapidly disappearing. Cryptocurrency technology would allow also the taxman to just cometh and take whatever he desires in the midst of the economic crisis we face. The Central Banks would be able to maintain greater control over the creation of money through the process of leverage (bank lending). While policymakers in Canada have already researched the idea. The IMF head Christine Lagarde called on central banks to focus on issuing digital currencies. All of this attention is being applied as the fear of rising interest rates in the marketplace is really beyond the control of central banks. It is true that central banks can control the short-term rates, but long-term rates are established by the free market. This is why the Federal Reserves was buying in 30-years bonds hopefully to impact the long-term rates which the Fed cannot directly control.
— Read on www.armstrongeconomics.com/world-news/cryptocurrency/central-banks-looking-at-creating-their-own-cryptocurrencies/