MONEY: NOW & LATER - Part III (Germany)
By Ron Chapman
Apr 7, 2009 - 4:45:00 AM
Ron: Repost from AHSupporters on 7 February 2008: Originally posted on the old AHS on 10 April 2007
MONEY: NOW & LATER - Part III (Germany)
Post WWI Germany is a case study in relation to both the negative effects of banking manipulation and printing press inflation on the one hand, and the positive socio-economic effects of sovereign credit
financing on the other.
The German nation was very harshly treated by the Anti-God/Christ Bankers (AB's) in the 20th Century. Germany's post WWI experience of inflation and deflation at the hands of the AB's is instructive.
The AB's use fractional reserve banking and money supply manipulation to steal the wealth of virtually everyone in the world but the AB's treatment of the German people after WWI was particularly unconscionable and brutal. The blatant Allied theft of German national assets under the Versailles Treaty was then exceeded by the avaricious banking fraud, monetary manipulation and printing press inflation perpetrated by the AB's and predatory scheming international financial carpetbaggers after the Treaty was signed. The crime against the German people was egregious.
On 31 March 1919 just prior to the Versailles Treaty being signed, price levels in Germany were only 117% higher than they were before WWI began. This was smaller than the price rise that actually occurred in the US in that period. Germany's public debt from the beginning of WWI to 31 March 1919 had increased by 130 billion Marks (about 30 billion $US at the time). The US public debt increased by a similar amount. The clear implication is that the German financial structure did not warrant the destruction of the currency experienced in 1921 and would not have occurred unless Allied international money manipulators intended it.
So what happened? Well, the terms of the Versailles Treaty were diabolical. They were directed at destroying the real German people. The Germans were manipulated into accepting horrendous peace terms because there were dozens of banksters at the Versailles peace conference. Also, Paul Warburg Vice-Chairman of the US Federal Reserve (banking) System (the Fed) was advising the US delegation while his brother Max Warburg, who had been chief of the German secret service,* sat opposite advising the German delegation! The Versailles treaty took away practically all of Germany's gold together with 75% of her iron ore deposits and mines. All of her colonies were taken away and about 25% of Germany's other physical property. Theft on that scale would have made Genghis Khan green with envy but that was not enough for the greedy international banking cabal. They wanted, and got, MORE.
* The Illuminati banking cabal has always infiltrated secret intelligence services and used them to encompass its aims and so, as on this occasion, the national interests of the people ostensibly being served by national secret services are undermined and destroyed by those "satanic" services.
From the signing of the Treaty in June 1919 until the beginning of 1922, the international money powers who were in control of the Reichsbank and the German Government were manipulating the situation in order to gain control of actual physical property in Germany. They drastically changed the banking laws so that they could borrow unlimited amounts from the Reichsbank and purchase physical property with the knowledge that the loans could later be repaid with worthless currency.
The volume of currency churned out by the privately owned Reichsbank in Germany is apparent in what happened to price levels after the Versailles Treaty. In 1920 price levels increased 1,500% over the pre-war level; in 1921 it reached 3,500% over the pre-war level, and by 23 October 1921, when the currency became worthless, it was 709 BILLION PERCENT, over the pre-war level. Predatory international bankers had printed private marks and forced them into the money stream with the avowed purpose of destroying the money system of Germany. That meant the destruction of all insurance policies and mortgages owned by the real German people. It also meant that the predatory foreign carpetbaggers got control of German land and fixed property for virtually nothing!
NB The US Federal Reserve under Chairman Bernanke ceased publishing the US statistics on total money supply (M3) in the US in March 2006. WHY do you suppose the Fed did that? AND why can such public interest decisions be made by a PRIVATE corporation?
Anyway, the international banksters made an absolute killing in post WWI Germany. They had obtained control of the physical properties and could pay out loans, many of which had been manipulated through the privately owned Reichsbank, with worthless money!
Germany's hyperinflation of 1921 was misnamed. It was NOT German inflation. It was private (virtually counterfeit) money issue inflation, perpetrated by international banksters and schemers. The inflation was not a government money inflation at all. It was an inflation of PRIVATE Reichsbank notes. The officers of the Reichsbank -- a privately owned institution* -- issued such huge volumes of money that they were able to destroy the entire banking structure and make all the money in Germany worthless.
* As is the US Federal Reserve Central Bank today.
Hatonn sums the situation up:
`The Germans, not being exactly stupid, knew to whom they had sold their homes, farms and business for what quickly became bags of worthless Marks. Consequently, when the little corporal appeared pointing a finger in the right direction, he became quite popular (for they recognised the ones now labeled, by themselves, self-styled "JEWS"; NOT JUDEANS—SELF MADE, SELF-STYLED"JEWS". AH, BUT THE SELF-STYLED ELITE MADE SURE THE HOSTILITY CAME AGAINST THE INNOCENT JUDEANS OF JUDEAN HERITAGE, AND WORSE, THEY STILL THRUST THE LIE UPON YOU AND YOU BELIEVE IT!).'
Hatonn goes on to tell us that:
`seeking to control Hitler, the AB's initially financed his rise to power. However, after achieving power Hitler double-crossed the AB's and instituted a debt-free money system. This enabled Germany to go from an impoverished nation to becoming the most powerful military nation on Earth in less than five years.* Hitler had to be destroyed. And so he was. But in order to do so, it was necessary to involve the U.S. in the war before the Nazis (National Socialists) in Germany could destroy the communists (International Socialists) in Russia.' (Phoenix Journal ch.22 p 156).
* So imagine what the institution of a totally debt free sovereign fiat money system will do for the whole world once GESARA gets here!
GERMANY'S ECONOMIC TRANSFORMATION UNDER HITLER
When Hitler attained power in Germany in March 1933 the economy was in total collapse, with ruinous war-reparation obligations and zero prospects for foreign investment or credit. Using an independent monetary policy of sovereign credit and a full-employment public-works program, the Third Reich turned a bankrupt nation, stripped of exploitable overseas colonies, into the strongest economy in Europe WITHIN FOUR YEARS. Moreover that was done before armament spending began. The effectiveness of German economic policy in the 1930s, some of which was commenced during the dying days of the Weimar Republic, is undeniable.
HOW DID HITLER DO IT?
Hitler adopted an aggressive full-employment campaign. Between January 1933 and July 1935 the number of employed Germans rose by a half, from 11.7 million to 16.9 million. More than 5 million new jobs PAYING LIVING WAGES were created. Unemployment was banished from the German economy and the entire nation was productively engaged in reconstruction. Inflation was brought under control by wage freeze and price control. Besides this, taking into account the lessons learned during 1914-18, Hitler aimed at creating an economy that would be independent from foreign capital and supply, and be well protected from another blockade and economic war. Unlike elitist Italian Fascism, Nazism had a high regard for the German peasant and although Hitler imposed sweeping government control over all aspects of the economy, Germany, unlike Mussolini's Italy, was not a corporate state.
NB Compare and contrast those "National Socialist" policies with the Rep/Dem and Lib/Lab industry and labour off-shoring; and free trade UNEMPLOYMENT policies; and debt money and foreign capital dependent economic management policies in the US and Australia, respectively, in the last 25 years. Had a look at your county's real national unemployment and foreign debt statistics lately?
By early 1937 Hitler had turned around a Germany ravaged by defeat in war and gutted by greedy foreign banksters and left in a state of national malaise by the liberal (neo-liberal?) policies of the Weimar Republic, and with a bankrupt economy weighted down by heavy foreign war debt and the total unavailability of new foreign capital, into the strongest economy and military power in Europe. Hitler's main renewal policy was Germany's Work Creation Program of 1933-36, which *preceded* Germany's rearmament program. Neo-liberal economists everywhere today still don't acknowledge that full employment and REAL *living wages* (fostered by sovereign debt free money creation) are the key to national economic health and social prosperity. That is because those economists are the tools and puppets of the AB's.
Any economic policy that does not lead to full employment is self-deceivingly counterproductive, and any policy that permits international wage arbitrage is treasonous. German economic policies between 1930 and 1932 were brutally deflationary, which showed total indifference to high unemployment and social weal-fare. In 1933 Hitler was elected Chancellor out of the resulting socio-economic chaos. Hitler reversed those socially destructive deflationary unemployment policies. The result was happy workers and national prosperity almost overnight!
SOVEREIGN CREDIT CREATION, FULL EMPLOYMENT & LIVING WAGES
The financing of Nazi economic-recovery programs drew upon sovereign credit creation techniques already tried experimentally prior to Hitler's appointment as Chancellor. Hitler's government created massive short-term sovereign credit with a firm commitment to retire in full the debt created by that credit - thus preventing inflation, that is, the devaluation of the currency that results from excessive money supply (creation). Short-term sovereign credit was important to change the general climate of distrust on government credit. The quick rollover of short-term government credit notes created popular domestic trust in German sovereign credit.
In May 1933 Hitler told German industrialists that the Reich budget must be balanced and that economic recovery required action by both state and private sectors. His government would provide public funding only for highway projects, not for industry. It would encourage private-sector investment, mainly through tax incentives. Hitler understood that investment was unlikely if consumers had no money to spend or were afraid because of job insecurity to spend money to buy products produced. He also understood that workers needed decent income to become healthy citizens and consumers. Thus full employment with adequate wages was the kick-start point of the Third Reich's economic "miracle" cycle.
As Hitler wanted to reduce business taxes to promote private investment a balanced budget should have meant reducing expenditures on social programs. To avoid reducing social programs, a large work program without deficit spending had to be financed outside of the Reich budget. Hitler resorted to "pre-financing" (Vorfinanzierung) by means of "work-creation bills" (Arbeitsbeschaffungswechseln), a classic response of using monetary measures to deal with a fiscal dilemma.
Under the scheme of "pre-financing" with work-creation bills (WCBs), the Reich Finance Ministry distributed WCBs (three months, renewable up to five years) to participating credit institutions and public agencies. Contractors and suppliers who needed cash to participate in work-creation projects drew bills against the agency ordering the work or the appropriate credit institutions. The credit institutions then accepted (ie assumed liability for payment of) the bills. The bills were then treated as commercial paper, so they could be rediscounted at the Reichsbank (central bank). The entire process of drawing, accepting and discounting WCBs provided the cash necessary to pay contractors and suppliers. The experience of successful rollover every three months quickly established credit worthiness. The Reich Treasury undertook to redeem the bills, one-fifth of the total every year, between 1934 and 1938, as the economy and tax receipts recovered. As security for the bills, the Reich Treasury deposited with the credit institutions a corresponding amount of tax vouchers (Steuergutscheine) or other securities. As the Treasury redeemed WCBs, the tax vouchers were to be returned to the Treasury. Hitler thus increased the money supply in the German economy by creating special money for employment.
Sovereign credit creation for purposes of job creation posed no inflationary threat and was a far more responsible policy than the conservative approach of tax increases and welfare cuts to balance government budgets. The idiotic policy of monetary restraint and social-spending reduction to balance government budgets in order to pay foreign debts is still accepted doctrine in the US (where it is essentially used to depress social spending [including welfare payments] and employment and to avoid increasing taxation of the wealthy). It is also accepted policy in Australia, and almost everywhere else in the because Central Bank controlled fractional reserve banking is dominant in most nations today. Also it is still being advocated by the International Monetary Fund (IMF) in debtor nations around the world - except for the United States, the world's largest debtor nation, which uses petrodollar hegemony as an escape hatch or, more accurately, an escape hedge. This is changing as the world is increasingly dumping the $US and bartering for oil or buying it with euros or even roubles and yuan.
The stupidity of mortgaging national sovereignty and wellbeing to banksters (including the IMF and other usurers) in pursuance of Washington Consensus policies is obvious to any rational neutral observer. Governments that do it are presumably under duress or on the take. During an interview in 1921 Sir Denison Miller (the then Australian Commonwealth Bank chief) was asked if he, through the Australian Commonwealth Bank (the Reserve Bank of Australia [RBA]wasn't created and given central bank functions until the 1950s), had financed Australia during the First World War for $700 million, he replied: "Such was the case, and I could have financed the country for a further like sum had the war continued." Asked if that amount was available for productive purposes `in this time of peace', he answered "Yes". Sovereign credit creation was clearly an option in Australia in those days but not today because now the RBA adheres to the requirements of moribund Washington Consensus economics and bows to the dictates of the Bank of International Settlements and the US Federal Reserve.
Redeeming WCBs did burden the 1934-39 Reich budgets, but the decline in Reich expenditure for welfare support and other tax subsidies as a result of full employment recovery more than offset the redemption payments. The surplus was then used to reduce public debt and taxes further. And of course the nation received the benefit of much greater production and productivity, and a decline in the social costs of economic malaise.
Of course, the Nazi sovereign credit creation policy double-crossed the AB's and placed the Reich beyond the banksters' pale in that it effectively excluded bankster domination and control of the German economy. The Illuminati banksters feared that the inoculation might spread. That meant that the City of London and the Fed had to oppose Hitler and thus, in due course, so did Churchill, the British Empire and the US. The rest is (rather unpleasant) history.
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