Since the creation of the Fed on December 23, 1913, the U.S. has been selling the world the idea that democracy, even with its possible flaws, is the best we can hope for in terms of a government. And it has directed all its foreign diplomatic and military policy to this end, to rid the world of dictatorships and to establish world democratic peace.
The most traditional and common alternative to democracy was monarchies, whose main characteristic was to have a family in charge of the government on a permanent basis where it was clear to the entire population who the government was (for whom the civil servants worked) and who the civilians were.
Central banks emerged as an idea to enable the government to spend more than it collects, they work as follows:
- The government uses its police and judicial monopoly to extort the population through taxes.
- The money obtained is used to finance this entire structure of expropriation and violence and its servants: police officers, judges, intellectuals, teachers, journalists, etc
- All surplus spending is made available on the market by the central bank as public debt securities, which are nothing more than a promise of future payment by the government.
- These bonds would have no market value (no one believes the government will pay for them) if it weren't for the fact that the government has established with its police monopoly a legal tender on the same border as its political domain.
- The value of these bonds lies only in the fact that there is a privileged sector in the economy (the banking cartal) that is authorized, by buying these bonds from the government, to expand in its accounts the available money it lends. For example, if they "buy" $100 worth of bonds, they are authorized by the central bank to lend $1,500.
- This process increases the total number of dollars in circulation (bank accounts + physical currency) and can be as fast as the larger the debt securities available.
- The banking sector necessarily needs to be a cartel (only a few people are authorized by law to carry out this operation), otherwise the competition to participate in this bonanza would create an immediate collapse in the system.
Democracy as implemented by the U.S. then is characterized by rotating political power and a permanent banking cartel. And their doctrine is nothing more than a reversal of who is the absolute power in the state, now instead of being in the hands of a king, it is in the hands of the families behind the banks authorized to expand the monetary base.
And being able to create money every time public spending exceeds tax revenues, it is natural that the credit available for loans is broken down in a way that perpetuates the power of these households.
To increase public spending and consequently the expansion of the monetary base, they finance politicians, journalists, teachers, intellectuals, activists, and people who convince public opinion on topics such as:
- Renewal of the energy matrix.
- Climate crisis.
- Homosexuality.
- Feminism.
Gramsci's ideology fits like a glove in this goal because it makes the population infantilized and dependent, thus less willing to question the system and happy with state spending.
Large business groups, if they want to have access to the excess liquidity available in the market, necessarily need to be aligned with these guidelines. The speeches of the leaders of Central Banks around the world work as a guide for companies listed on the stock exchange of where to direct investments to have access to this credit.
War has a special meaning for the banking cartel, because not only does it increase public spending, but it is a chance to dethrone some king or dictator around the world, making it possible to establish a democracy in its place.
However, this new democracy would have its reserves in dollars, being subjugated to the American financial system (and increasing its power of expansion of the monetary base), in exchange it could use a local currency to implement a layer of financial expropriation under its population with the military and methodological backing of the US (control of the media, fraud in elections and everything that only a group in control of the currency has the resources to do to perpetuate itself in power).
And this is exactly what was observed in the world after the creation of the Fed:
- World War I from 1914 to 1918 with the flight from the gold standard and democratization of European monarchies.
- World War II from 1939 to 1945 with the official establishment of the dollar as a store of value through Bretton Woods in 1944.
- The Cold War that took place between 1947 and 1991 served to establish dictatorships around the world, with American military support (for example, Latin American countries) under the pretext of a Soviet threat, and ended with democracies with the local banking cartel having its reserves in dollars and with its own currencies guaranteeing some local political autonomy.
- The Gulf War (1990), Kosovo (1999), Iraq (2003) with the death of local dictator Hussain, The Arab Spring (2011) with the death of Libya's dictator Gaddafi, served to advance American monetary imperialism towards the East and eliminate governments unaligned with the American democratic model.
- We are currently watching the offensive against Russia through the war in Ukraine, and an American attack on Iran drawing on the events taking place between Israel and Hamas.
I don't know if it would be correct to call this sequence of events a democratic peace, perhaps more accurate to call it the monetary imperialism of the dollar.
From the Roman Empire, Napoleon's France, to today's U.S. without the expansion of the monetary base it is impossible to create an imperialist nation, because military spending is extremely high even for those who have the power to tax the population.
In the same way that the media and terrorist attacks (September 11, 2001, Hamas's attack on Israel) serve to convince people through fear of the necessity of war, public opinion against war makes it very difficult for these groups to act militarily. People like Julian Assange who exposed the nature of war to the public were treated as enemies of the state by the US.
Explaining in simple terms how the state works and withdrawing all its funds from the financial system is the only hope for world peace and prosperity, it is nothing but the moral duty of a man of integrity.