In recalling the presidential campaign of Barack Obama I remember at least several allusions to the late Mr. Abraham Lincoln, who was, of course, President of the United States of America immediately prior to and during the War Between The States. The fact that Mr. Obama was a tall, lean, raw-boned sort of man, morphologically-speaking, in no way impeded this facile comparison. As a resident of the great state of Illinois, he shared another kinship with Abraham Lincoln. There were actually even rumors that Abraham Lincoln had an ancestor who was partially descended from African slaves. Whether it is factually true seems uncertain but improbable. However, this possibility nevertheless strengthens the comparison of the two men, as well as Mr. Obama's apparent affinity to Mr. Lincoln, for Barack Obama has a similar lineage.
Today, Barack Obama faces formidable economic problems which have resulted from the United States of America departing from a federal system of money-creation to one that is in private banking hands. This modern system creates money for the nation by loaning to businesses and individuals, often collateralized. These loans are denominated in U.S. dollars and become part of the money aggregates of the domestic economy.
The funny thing is that there is not sufficient "physical money," such as paper dollars or silver dollars, to cover all the money created by loans. The actual amount of real, physical currency in circulation is a tiny percent of the total "currency," which aggregates the Federal Reserve Board and U.S. accounting agencies utilize. Hence, at any time a downward-spiraling, monetary game of "musical chairs" can begin.
In short, the U.S. operates on a "phantom money" economy, which is controlled by private banking interests. Given the number of depressions and recessions that have occurred since Paul Warburg, the Rockefeller interests, and the Morgan interests met clandestinely to work out the new American central banking system on Jekyl Island, there is no need to go "back to the drawing board" again, as the system is intrinsically flawed. They can never "fix" human greed, stupidity, gambling, and unforseeable events that relentlessly sever the Achilles heels of their beloved system. Folks, this system is supposed to be "scientific" and to protect the citizenry from dunderheaded politicians. All it has done is to remove from the people the danger of Michael only to put them in peril of Jason. [The latter two are, of course, the implacable killing machines from Halloween and Friday the 13th film fame.]
This process of the federal government "passing the buck" to private banking interests to create and regulate the U.S. money-creation process was institutionalized by the enactment of the Federal Reserve Act of 1913.
Our nations went from being solvent at the turn of the 20th century to massively indebted today. Thanks to Congress and the Federal Reserve Act of 1913, we have become a "beggar nation." Most Americans believe that by playing the role of "global hoodlum," while patting ourselves on the shoulder as a "knight in shining armor," we do well. Don't believe a word of it. This debt problem is systemic. As with Mickey Rourke's character Randy "the Ram" Robinson, the glory days end on the floor in the bowels of a third rate arena, as a once-great heart gives way to the effects of self-abuse.
The unwarranted embrace of "free-trade" by the same leadership that gave us a debt-based, phantom-money system of money creation has not helped the nation of the United States of America, although it may have helped other nations. It is not charity that inspires our leaders to cut out our heart and hand it to the hungry of the world; it is hatred of the nation and what it stood for once. Many of our ancestors came here and proclaimed it to be the Promised Land. Our "Moderns" have turned it into a citadel of the Resident Evil. Small wonder that our money-creation system was dubbed by one author as the "Babylonian Woe." Small wonder that our nation is despised around the world.
This is the system of money-creation that Mr. Obama is attempting to mend by "bailing out" the banks (if they're big enough), rather than confronting the root cause of our problem in this area. There is nothing new that he will do to "fix" the problem. He means to fix a deflated monetary balloon by means of a "blow-job" involuntarily administered by present and future citizens. He'll take the lion's share of the credit.
There is a similar, well-defined economic problem which confronted Abraham Lincoln. He was faced with great expenses related to suppressing the "Southern Rebellion." He went to bankers in New York and other urban areas to borrow the money to pay the Union troops and to pay for materiels of war. He was quoted by the bankers high interest on such loans. These were in the range of 30%, which is not so far from modern credit card rates. Abraham Lincoln refused to pay the outrageous usury. Still, he had to raise the money.
Neither Congress nor the Department of the Treasury could muster an alternate to the "big bankers" and their usury. Why? Most likely, a substantial number of key legislators were secretly owned by the bankers, and they would do little to undercut the bankers. As for the leadership of the Treasury, they were probably educated to imagine that taking a loan from a "sound" bank was the responsible economic course of action.
This left Mr. Lincoln in a difficult position. How was he ever to quell the rebellion without the emergency funding required for such an event?
In such times one often thinks of respected, tried-and-true friends that one encountered early in life. For Abraham Lincoln there was such a one. His name was Colonel Taylor. They were acquainted in Springfield, Illinois, and became close friends. President Lincoln decided to call upon his old friend for advice.
When Colonel Taylor was contacted and the President's problem set forth, he responded encouragingly. He told Abraham Lincoln to have Congress authorize the issuance of paper money that was legal tender for all debts, private or public. Use this interest-free money to pay "your troops," to buy your war materials, and to "win the damn war." President Lincoln did just that. This money became known as "green backs."
Later, President Lincoln was to return to Congress for additional "green backs." However, by then the "big bankers" (and not so big) had been galvanized into action.
For "big banks" the biggest, safest loans are to government. As a last resort, these loans are collateralized by the labor of the citizens thereof. Implicitly, this suggests national serfdom, if worse came to worse. This practice of loaning to a national government in the nation's name had been mastered by the Rothschild brothers in Europe, as well as their imitators, such as the Warburgs, Seifs, Davids, Speyers, et al. The Rothschild family was believed by informed observers to be richer than any nation of Europe by 1860.
At the time of Abraham Lincoln the United States had no central bank. The last experiment in central banking was stopped during the Andrew Jackson Presidency. Nevertheless, England did have a central bank known as "the Bank of England." It had been formed in 1694 by an agent of bankers, a Mr. Patterson, who was able to lure into the scheme key elements of the royal and aristocratic crowd. He, himself, was the agent of hazy financiers from Amsterdam and Iberia. After the creation of the Bank of England, the national debt of England began to skyrocket to its present level.
Parenthetically, wars are lucrative for bankers, as they helped to fund the costs of a war. The loans are to the safest class of debtor - nations, which collateralized the loans with the labor of their citizenry, including those as yet unborn. Not surprisingly, such lenders clandestinely work with foolish agents of national vanity to lead the nation into a war (and excessive debt).
Therefore, the European bankers had a decided interest in events unfolding in the United States. By Abraham Lincoln's Presidency the U.S. was viewed as one of the world's likeliest "plums." European bankers had established banking relationships with major American banks and investment banking houses. None of these people wanted to see the United States issue its own, interest-free currency. The principle of debt instruments as the origin, or basis, for a national currency - or at least a co-equal to gold and silver coinage - was accepted in Europe.
The danger of this system is that over time it places increasing influence and power over a nation in the hands of a small category of people, whose destiny is quite separate from that of any other national interests. Money such as gold and silver are international. Bankers were working to achieve the same status for debt instruments. The Rothschilds had "invented" the bearer bond. These had become internationalized at least in Europe and the European colonies.
Parenthetically, although most people do not think of "bearer bonds" as modern currencies, the fact of the matter is that Federal Reserve Notes, denominated in U.S. dollars, are debt instruments of this kind. At one time these "notes" were convertible into gold or silver coins.
All of this is a preface to establish that powerful interests inside and outside the United States were very antagonistic toward the Lincoln currency known as "green backs." Their full legal tender status insured that they would work in the American economy, which was self-sufficient at that time. That is, even if the external bankers organized an economic embargo in Europe and the British Commonwealth, the United States would continue to grow and prosper.
So, the bankers turned to legislators to change the legislation. Indeed, the Congress did enact a second issue of "green backs," but this time they impaired the "full legal status" of the issue. It could no longer be used to pay taxes and other public debt. This had the effect of turning such loan-seekers back to the banking crowd. It seriously harmed the people's regard for the "green backs." Victory goes to the bankers, but Abraham Lincoln gave them a scare.
Incidentally, a "Thank You" letter was written and preserved from Abraham Lincoln to Colonel Taylor, in regard to his wonderful suggestion to issue "full legal tender" papermoney. Mr. Lincoln had seen the promise of this form of national money. Had he lived, he might have used the same sort of money to help the South get "back on its feet," and at the same time prevent outside agents of Europe buying up much of the best property in the South.
Similarly, in a nation suffering from draining liquidity, as debt implodes, President Obama faces money problems at home, including the high costs of arming and paying the nation's military which is currently fighting in a war zone. Further, even with measured intentions, Mr. Obama cannot be certain about the length and intensity of this war. He can only be sure that it will be costly.
Although compared with Abraham Lincoln, Barack Obama seems more closely to resemble President Woodrow Wilson, who was the captive of the Morgan, Rockefeller, Schiff, Warburg, Baruch and Meyer banking crowd. Closely advising Barack Obama and financially supporting his campaign "big time" were the former partners and top executives of Goldman Sachs, the leading investment banking company on Wall Street. Intimately associated with Woodrow Wilson's Presidency was his adviser, the enigmatic "Col." House. Mr. Obama can readily confer with Rahm Emanuel or David Axelrod. Mr. Wilson pledged to never enter the European conflict. Mr. Obama has repeatedly criticized the lengthy, costly war in Iraq, and, at that time, advised President Bush to "bring our troops home." Not too many people noticed looming hazily in the background of his rhetoric his martial attitude toward Afghanistan. As with Mr Wilson, Mr. Obama became a sort of "peace" candidate.
On the war front Mr. Obama has surrounded himself with "yes" men toward his plan to withdraw slowly from Iraq and to intrude more significantly into Afghanistan. I predict that there will be a parade of "Afghanistan Presidents" over the coming years, as was the case in South Vietnam.
On the economic front Mr. Obama has surrounded himself with debtmongers. His Secretary of the Treasury, Timothy Geithner, was associated both with Wall Street banking and with the N.Y. Federal Reserve Bank adjacent to Wall Street. He is part of the "Babylonian woe" that besets this nation.
Can Barack Obama learn anything from Abraham Lincoln? He certainly could, if he bothered to study the advise of Col. Taylor to Abraham Lincoln on his financial problems. As was Mr. Lincoln's promise, inherent in the full legal tender "green back," to bring the greatest blessing ever brought to this nation, so it has become the promise of Mr. Obama. Will he follow the great example of Abraham Lincoln? Given the high stakes involved, for Mr. Obama this course might well be the road to martyrdom. Given his connections, it would seem an aberrant move. Therefore, in regard to Barack Obama key on Woodrow Wilson. Go back to the future.
March, 2009.
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