Posted by: Dr Pano Kroko Churchill | June 24, 2014

Having your own Currency is How your Nation becomes prosperous

The brightest light of Economics, Banking, and Industry, as well as Public Policy and Enlightenment for the Americans and for game-changers the World over, was Benjamin Franklin.

Incidentally He was also the Greatest Revolutionary as described by an authority no less than Chairman Mao, who himself was quite an iconoclast and who viewed Ben Franklin as an intellectual Mentor and an inspiration for his drive to feed his people and create employment, hope, opportunity, and prosperity, out of the ashes of a devastating war in an impoverished nation.

Tsinghua University and it’s humanitarian mission and vision, is proof of that intellectual bridge too far…

Now Ben Franklin himself was no spring chicken when it came to Finance, and so his words are particularly relevant today when you deal with many countries suffering debilitating economic depression because of financialization. And in short because unwittingly, they have given up their own power to mint their own currency and thus they have lost access to the “Free Money” the local coin represents.

Countries like Greece, Italy, Portugal, Ireland and others who have given up their own “Free Money” and have surrendered the freedom to have a monetary policy to a distant “Occupying” Authority in Berlin, Brussels, and Frankfurt.

Just as the endless economic depression for the poor countries of the European Union’s periphery who are into the Euro-zone, and have no access to their own “Coin” bites harder into the flesh of the populace — the wanking bankers enjoy unprecedented profits and the largesse of the Union’s follies.

But the nations like Greece who have no way to use the power of “Free Money” their local coin — in order to fix their own independent Monetary Policy. Unfortunately the Greek government has surrendered this Keynesian supply and demand management of the economic levers of government and thus they are unable to regulate their own flow of goods and services and the employment of their people. The saddest part is that they have surrendered this most crucial Management of their National Policy to the Germans.

And if anyone of you has ever been imprisoned by the Germans or enjoyed their ministrations in the concentration camps of the WWII era or even their modern jails, you would know this was a grave mistake…

But let’s look at the historical perspective to learn from this huge mistake of Statecraft.

Let us look at the most successful Democracy and the most prosperous Economy of the World, and see how they fared when they were in similar straits and what got them out of it.

Unbeknownst to most of you, the Americans of the 18th century had been also restricted on the printing of their own “Free money” native coin, and had their local currencies disallowed by the King of England. The Crown stopped the Colonies from having their own currencies after they saw that the colonists enjoyed a higher standard of living than that of Mother England. A bit of jealousy maybe or just semantics, but there you have it. The Crown stopped the Colonies from minting their own coin and regulated them to use only the approved British pound and denominations thereafter.

A grave mistake because that immediately sent the Colonies into an Economic tailspin that resulted in a severe recessionary cycle, and that singular event, launched the American Colonies in a terrible and unshakeable economic depression…

Of course this brought blowback. Soon enough the American Colonies revolted and overthrew the yoke of the oppressors into the sea starting in Boston in 1774. You know the rest about the Tea party and all the common folk literature, but by the end of 1775 the fierce American patriots had seized full control in all thirteen colonies and on July 4, 1776, the Continental Congress declared the American Independence and immediately issued their own Free money currency as the first act of defiance and Liberation.

As students of History, we have to wonder is that truly the cause of this amazing reversal of fate and favour, towards Britain and the Crown? And what is the root reason of the deep seated hatred of the sparsely populated American colonies against Mother England that led men to shed their lives in favour of Independence?

Many people would have you believe that it was all about Taxation without Representation and although that is true — the Real Root Causes of the American Revolution and the fight for Independence from Great Britain, run far deeper than that.

I say let’s go to the Lion’s mouth to hear the truth. Let’s ask Benjamin Franklin himself, to help solve this conundrum for us all…

Ben Franklin had this to say about the American Revolutionary War of Independence and the root economic causes of it all:

“The American Colonies would gladly have borne the little Tax on tea and other matters had it not been the poverty caused by the bad influence of the English bankers on the Parliament, which prohibited our coinage and thus has caused vast hatred of England in the Colonies, and resulted in the Revolutionary War.”

And this is how Benjamin Franklin experienced what made “New England” [the Colonies] far more Prosperous than Old England:

“”Colonies Made More Prosperous Than The Home Country”

Before the American War for Independence in 1776, the colonized part of what is today the United States of America was a possession of England. It was called New England, and was made up of 13 colonies, which became the first 13 states of the great Republic. Around 1750, this “New England” was very prosperous indeed.

Benjamin Franklin was then able to write:
“There was abundance in the Colonies, and peace was reigning on every border. It was difficult, and even impossible, to find a happier and more prosperous nation on all the surface of the globe. Comfort was prevailing in every home. The people, in general, kept the highest moral standards, and education was widely spread.”

Yet when Benjamin Franklin went over to England to represent the interests of the Colonies, he saw a completely different situation: “The working population of Old Blightey [England] at the time, was gnawed by hunger and poverty. “The streets are covered with beggars and tramps,” he wrote. He asked his English friends how England, with all its wealth, could have so much poverty among its working classes.”

His friends replied that England was prey to a terrible condition: “It had too many workers! The rich said they were already overburdened with taxes, and could not pay more to relieve the needs and poverty of this mass of workers. Several rich Englishmen of that time actually believed, along with Malthus, that wars and plague were necessary to rid the country from man-power surpluses.”

Franklin’s friends then asked him how the American Colonies managed to collect enough money to support their poor houses, and how they could overcome this plague of pauperism. Franklin replied:

“We have no poor houses in the Colonies; and if we had some, there would be nobody to put in them, since there is, in the Colonies, not a single unemployed person, neither beggars nor tramps.”

“Prosperity Arises Thanks To the Free Money Issued By The Nation”

Franklin’s English friends could not believe their ears, and even less understand this fact, since when the English poor houses and jails became too cluttered, England shipped these poor wretches and down-and- outs, like cattle, and discharged, on the quays of the Colonies, those who had survived the poverty, dirtiness and privations of the journey. At that time, England was throwing into jail those who could not pay their debts. Debtor prisons were overflowing. They therefore asked Franklin how he could explain the remarkable prosperity of the New England Colonies.

Franklin replied: “That is simple. In the Colonies, we issue our own paper money. It is called “Colonial Scrip.” We issue it in proper proportion to make the goods and services pass easily from the producers to the consumers. In this manner, creating ourselves our own paper money, we control its purchasing power and we have no interest to pay to no one.”

“The Bankers Impose Poverty on the American Colonies”

The information came to the knowledge of the English Bankers, and held their attention. They immediately took the necessary steps to have the British Parliament to pass a law that prohibited the Colonies from using their scrip money, and then ordered them to use only the gold and silver money that was provided in sufficient quantity by the English bankers. Then began in America the plague of debt-money, which has never since brought so many curses to the American people.

The first law was passed in 1751, and then completed by a more restrictive law in 1763. Franklin reported that one year after the implementation of this prohibition on Colonial money, the streets of the Colonies were filled with unemployment and beggars, just like in England, because there was not enough money to pay for the goods, the services, and the work. The circulating medium of exchange had been reduced by half.

Franklin added that this was the original cause of the American Revolution – and not the tax on tea nor the Stamp Act, as it has been taught again and again in history books. The financiers always manage to have removed from school books all that can throw light on their own schemes, and damage the glow that protects their power.

Franklin, who was one of the chief architects of the American independence, wrote it clearly: “The Colonies would gladly have borne the little tax on tea and other matters had it not been the poverty caused by the bad influence of the English bankers on the Parliament, which has caused in the Colonies hatred of England and the Revolutionary War.”

This point of view of Franklin was confirmed by all the great American statesmen and co-revolutionists of his era: John Adams, Thomas Jefferson, George Washington, Paine, and several others.

A remarkable English historian, John Twells, wrote, speaking of the money of the Colonies, the Colonial Scrip: “It was the monetary system under which America’s Colonies flourished to such an extent that Edmund Burke was able to write about them: ‘Nothing in the history of the world resembles their progress. It was a sound and beneficial system, and its effects led to the happiness of the people.’”

John Twells adds: “In a bad hour, the British Parliament took away from America its representative money, forbade any further issue of bills of credit, these bills ceasing to be legal tender, and ordered that all taxes should be paid in coins. Consider now the consequences: this restriction of the medium of exchange paralyzed all the industrial energies of the people. Ruin took place in these once flourishing Colonies; most rigorous distress visited every family and every business, discontent became desperation, and reached a point, to use the words of Dr. Johnson, when human nature rises up and asserts its rights.”

Another writer, Peter Cooper, expresses himself along the same lines. After having said how Franklin had explained to the London Parliament the cause of the prosperity of the Colonies, he wrote: “After Franklin gave explanations on the true cause of the prosperity of the Colonies, the Parliament exacted laws forbidding the use of this money in the payment of taxes. This decision brought so many drawbacks and so much poverty to the people that it was the main cause of the Revolution. The suppression of the Colonial money was a much more important reason for the general uprising than the Tea and Stamp Act.”

“Today, in America [as well as in Europe], we are under the regime of the “scrip” of the Bankers instead of the “Scrip” of the nation. Hence the public debts, everlasting interest charges, taxes that plunder purchasing power, with the only result being a consolidation of the financial dictatorship.”

“There is only one cure for America’s [and Europe’s] fear of ultimate financial collapse and that is for the American Congress to exercise Clause 30 of the “Federal” Reserve Act, buy the outstanding shares of stock, shut down this unconstitutional system and sell off their assets to reimburse the people of this nation for this unspeakable theft of their wealth.””

Europe will soon follow such liberating enactment of the Special Powers of the Constitution, by America, since the Beacon of Capitalism rests with the United States of America.

The real reason why Europe will soon follow the example of American Independence is only because that is the rightful path of history. From a leading Democracy to the lesser ones… and eventually to the whole world. We are now going from a period of amalgamation to one of dispersal. From the Soviet collapse to the individual Free States with their own money. They all do better now than when they were under the Old Russian rubble. The old Soviet Rubble had brought only central economic plans with five year unrealistic goals and this in turn had brought death, oppression, and misery, to the satellite Soviet economies. Something like what is the story now with the central Soviet of Brussels and Berlin lording it over the natives of Greece, Italy and Spain. Yet like the collapse of the Soviet Union this regime will collapse as well. Because when you examine all the old Soviet republics, you cannot fail to see that now with their own currency they all do well, and their stars shine brighter than ever before, and with Freedom to boot.

Professor Farley Grubb, author of Creating the U.S. Dollar Currency Union, 1748-1811: A Quest for Monetary Stability or a Usurpation of State Sovereignty for Personal Gain?, and Benjamin Franklin and the Birth of a Paper Money Economy says: As far as the Franklin quotes and the passages in the senator’s speech are chock-full of history, the Currency Acts of 1751 and 1764 prohibit the colonies from issuing paper money. That these currency acts were the KEY spark to the revolution is without a doubt.

Of course as things changed with the abolition of the Free Money [The Colonial Scrip] the American colonies were generally regarded as partly New England, partly Middle Colonies, and partly Southern colonies, and all had some form of poor houses, with Philadelphia having a fairly large one. Franklin disapproved of offering charity rather than work to healthy people, but he was also a chief founder and first President of the Pennsylvania Hospital (the first in America), which, like almost all hospitals in the eighteenth century, was a charity hospital.

Franklin was an advocate of paper money, and Pennsylvania’s colonial paper money was sound and therefore never prohibited, though New England’s was unsound, inflationary, and finally prohibited by Parliament, because it became nearly worthless — before being prohibited. In some ways it had become a dodge by the Colonists used in order to pay off English creditors, rather than a reasonable medium of value.

Franklin also did think that America was generally better off than England and that its population was growing faster than England’s. That was true because of the available land in America, which, of course, the colonists took from the Indians, and true in the South because of available land and the slave system. Indeed, Franklin said that the Indians in America lived better than the Irish in Ireland — because the latter were oppressed by the English landlords.

As for the causes of the American Revolution, the colonists had many complaints, but the most fundamental and symbolic one was taxation without representation.

There are numerous accurate quotations from Franklin, found in the following article, Causes of the American Discontents Before 1768. In it, Franklin enumerates a number of grievance, including the following: “That on a frivolous complaint of a few Virginia Merchants, nine Colonies were restrained from making paper money, though become absolutely necessary to their internal commerce, from the constant remittance of their gold and silver to Britain. — But not only the interest of a particular body of Merchants, the interest of any small body of British Tradesmen or Artificers, has been found, they say, to out-weigh that of all the King’s subjects in the Colonies.”

Thus, taking away from the colonists the right to issue their own money was indeed the major grievance because it led to economic collapse, but it was one of the many grievances and since it was an intellectually difficult to grasp and understand let alone phrase in a way to excite the passions of the people — it did not rise to the top and thus did not hold the famed symbolism of “Taxation Without Representation” and the throwing off of the tea in the Boston Harbour, as it appears in the Declaration of Independence.

Franklin objected to the English “Acts” [Law Decrees] denying colonies the right to make money because the English Parliament objected to Pennsylvania issuing paper money, along with those colonies who issued nearly worthless paper money. Or so the English Bankers claimed…

The bankers convinced the English Parliament which in turn through the King and the Army, behaved unreasonably towards the American Colonies, in the Stamp Act and all through the following years, and thus caused the grievances and the discontent that led to the Tea Party in the Boston Harbour.

Indeed the prohibition of the “Free Money” helped the Revolution greatly; and perhaps it also helped that Franklin was a far better propagandist than King George and the English Parliament combined, as they were led from the nose by the Banker-wankers of the time…

Yours,
Pano

PS:

The notion that the American Revolution was somehow against “government” and “taxation” in general, and not, as all the Founders said, against the Banking oligarchy and the rule by distant monopolists and feudal English lords who disallowed the paper money of the colonies and thus brought about economic ruin — is among the most hilarious conflations and Orwellian propaganda campaigns of our lifetimes.

The monetary Policy of a nation [the Right to print it’s own money] is a birthright of any rightfully called independent nation and when that Right is surrendered the nation is nothing but a colony.

That Right can only be pursued independently through the national power to control it’s own currency and resources.

If any leaders of small European Nations are reading this by chance then let them be warned that Now They Know what needs to be done, and shying away from their oaths and responsibilities.
And this shyness, only makes them traitors to the cause of their People’s Well Being.

Be weary — be very weary of the people when they are well informed. They storm Bastilles, and take over Parliaments, without too much sweat…

Ben Franklin with headphones listening


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