The Theory of Banking: Historical Analysis and Financial Systems

[00:00:02][Music] Howdy y'all. Welcome back to understand the growth of the old world. To witness the systems, values, the spectacles of industry and inheritance which shaped the most profound reaches of society. To know the constructs that held our ancestors in place only begins to illuminate the darkness that surrounds most major historical narratives. Much akin to similar videos I've made on other subject matter. I will preface this by letting you know that everything in today's video is only a theory.

[00:00:40]Granted, we will examine numerous historical narratives, if only briefly, using them as a catalyst for a deeper understanding of an overarching theme which seemed to control mankind for the last 500 years. That is the banking system. For what we discuss today can be 95% proven through historical fact, the accepted narrative. And I will include as many references to actual events and people as possible to make this theory more graspable. But again, you must remember this is only a theory. And until the veil is fully lifted, it becomes hard to say with certainty where the truth here begins and the plausible deniability ends. But alas, that is what I will attempt to do in this video, to give you the whole theory. In scouring the interweb for the last six years or so, researching the most anomalous parts of our history, I have formed what you may call a theory on everything. And for this theory, I've reached deep into hundreds of different historical narratives, analyzing as much of the contrived history as possible. I then spent numerous months addressing this theory online through numerous historical forums and other places where more outlandish theories are also posted. Looking to separate the important information here which could create a theory that not only represents what many other researchers have discovered but also adheres to my own discoveries on this matter as well. So, let's dive deep into the theory of the banking system and how it has controlled mankind since the enlightenment. Again, just one more time before we get into this. This is all just a theory, but one that seems to tie together the most gaping holes in our understanding of modern society. So, let's get started.

[00:02:36]This story begins in the mid500s when certain merchants were expelled from Spain and Portugal during the Inquisition and they found refuge and eventually established a significant presence in Amsterdam. Over time, these merchants played a key role in shaping Europe's financial landscape, including the creation of the Amsterdam Stock Exchange in6002 and the establishment of the Bank of Amsterdam in6009. Remember that these institutions became the models for future financial systems. To quote the words of Nicholas Capernicus in 1517, and I quote, "The greatest and most forbidding mistake has to be when a ruler tries to make a profit from the minting of coins by introducing and circulating new coins with an inferior weight and finness alongside the originals and claiming that they are both of equal value." End quote. These words will become very important a h 100red years down the line. The so-called kipper and whipper period saw the highest inflation in the history of the Holy Roman Empire. The start of the 30 years war marked the beginning of a drastic deterioration in the quality of coins in central Europe which lasted until roughly 1623.

[00:04:06]The origin of this financial and economic crisis, however, is to be found some decades earlier. New coins were being minted by adding copper to the silver that was extracted from the original coin. The profit made by reminting coins in this way was so enticing that the silver content of the coins was further and further depleted until pure copper coins eventually came onto the market. Trade and transport picked up as a result of the increased volume of cash in circulation. Economic output rose, but the prices of individual products also went up rapidly. Those who had the opportunity to pass on the price rises to their customers did just that. Those receiving a fixed income, such as teachers or pensioners, no longer had enough money to live. The Dutch East India Company, VOCC, was established in6002 and was one of the most powerful and influential trading enterprises in history. Founded in the same year as the world's first stock exchange in Amsterdam, the VOCC held a monopoly on the spice trade between Western Europe and Asia, dominating global commerce during the 17th century.

[00:05:29]In6009, the VOCC hired English sea captain and explorer Henry Hudson to find a northeast passage to Asia, a route that would allow ships to sail around Scandinavia and Russia. When Arctic ice blocked his path, Hudson abandoned the Northeast Passage and instead sailed westward in search of a northwest passage. During this voyage, he explored the northeastern coast of North America aboard the ship Half Moon.

[00:05:58]His journey led to landfalls at Newfoundland and Cape Cod, marking some of the earliest European explorations of those regions. By 1621, Dutch settlers had established colonies in what would later become the states of New York, New Jersey, Delaware, and Connecticut, with smaller outposts in Pennsylvania, and Rhode Island. This vast territory became known as New Netherland and was administered by the Dutch West India Company WIC. Founded in 1621, the WIC became the world's first multinational corporation backed by the financial infrastructure of a central bank and the Amsterdam Stock Exchange.

[00:06:43]It played a crucial role in managing Dutch colonial ventures in the Americas.

[00:06:50]The Dutch tullet bubble of the 1630s was a speculative frenzy that enriched Amsterdam's financial sector. And the wealth generated was later used to support William of Orange in his campaign to seize the English throne from his father-in-law, James II. With William's success, the stage was then set for the expansion of the financial institutions that had been pioneered in Amsterdam. By 1694, these systems, central banking, stock markets, and lending houses were firmly established in London. In 1654, the first Jewish settlers arrived in New Netherland, marking the beginning of Jewish immigration to North America. By this time, Jewish merchants and investors had become significant stakeholders in both the Dutch East and West India companies, collectively owning more than a quarter of all their shares. Their involvement in these enterprises reflected the growing influence of Jewish communities in European commerce and finance. From there, England exported this new form of banking to all of its colonies, spreading its influence across the realm. This financial system, rooted in the experiments of Amsterdam and then refined in London, would go on to shape the modern world. On February 9th, 1674, less than a century after the establishment of the Amsterdam Stock Exchange and the Amsterdam Central Bank, the Dutch Republic agreed to transfer the colony of New Amsterdam to England under the Treaty of Westminster. The city was then renamed New York in honor of the Duke of York, later King James II. This transfer occurred shortly before the glorious revolution of 1688, which reshaped the political landscape of England and all of its colonies. In Europe, the financial center of gravity shifted from Amsterdam to London following the glorious revolution of 1688. The Bank of England, established in 1694, became a cornerstone of this new financial order. The banking dynasties who had already tested their financial systems in Amsterdam played a significant role in this transition. The glorious revolution also marked the end of the centuries long struggle in England over absolutism and the divine right of kings as power shifted to the parliament. The city of London, a sovereign entity within England, emerged as the new hub of global finance, heavily influenced by all of these banking interests. The edict of expulsion of the Jews from England was issued on July 18th, 1290 by King Edward I due to a vast money clipping operation that was discovered where there would be coins that were shaved and then these coins were used at the same value that they were minted at. In 1664, the edict of expulsion was lifted by King Charles II. In 1666, just two years later, onethird of the city of London is destroyed in a fire that is now known as the Great Fire of London. The fire affected, oddly, almost exclusively, the medieval walled section of the town, where all of the oldest structures stood. The fire destroyed three notable buildings. the Guild Hall which was the administrative center for the city of London, St. Paul's Cathedral which had stood since603 and was the religious center of London and the Royal Exchange which was the first stock exchange of London built in 1571 and modeled after the ones that were established in Amsterdam and later Belgium. The great fire of London acted as a catalyst for the modernization of the city and further economic growth.

[00:11:13]The rebuilding efforts combined with the emergence of new financial services, legal frameworks, and global trade connections transformed London into the leading financial center of the world.

[00:11:28]Diving further into this theory and again all just a theory but in 1743 in Frankfurt Germany Amchel Moses Bower opened a quote counting house. Over the top of this shop he placed a sign featuring the Roman eagle and a red shield. The shop then became known as the red shield firm or in German Rothschild. When his son Meyer Amshell Bower inherited this business, he decided to change the family name to Rothschild. Meer Amshell Rothschild soon learned that loaning money to nations was a far more lucrative business than loaning money to individuals, as the loans to nations were secured by taxes.

[00:12:12]Meer Rothschild then had five sons. He trained them all in the business and sent them to the major capitals across Europe. His first son, Amshaw Meyer Jr., stayed in Frankfurt to tend the founding bank. His second son, Solomon, was sent to Vienna, Austria. His third son, Nathan, said to be the most clever, was sent to the city of London, the financial center of the realm. And his fourth son, Carl, went to Naples, Italy.

[00:12:42]His fifth son, Jacob, who later changed his name to James, went to Paris, France. And in 1785, Meer Rothschild moved his entire family, excluding his sons in other countries, to a five-story building in Frankfurt, Germany, which became known as the Green Shield building. The bottom floor was shared and occupied by the Schiff family, and they will come up very soon. Shortly after the French Revolution in 1799, the Rothschild family began lending money and gold to the British during the Napoleonic Wars.

[00:13:18]They supplied gold to the Duke of Wellington's troops, which helped prevent the army from defeat. Nathan Meer Rothschild is said to have been the first person in London to learn of Wellington's victory. He was said to have used this information about Napoleon's defeat to spread misinformation about a Napoleonic victory across Europe, manipulating the markets of the London Stock Exchange into a selling frenzy. Rothschild and his family then bought up as much of these stocks that they could in the short period before the truth became known that Napoleon had actually lost at Waterlue and that his reign had ended.

[00:14:00]thus securing the fortune of the Rothschild family. 1848 is often referred to as the year of revolutions because of the wave of uprisings and protests that swept across Europe such as the February revolution in France, the March Revolution in the German states, the Austrian uprisings, the Italian revolutions, the Danish revolution, the revolution in Wakia, now Romania. These revolutions were driven by widespread dissatisfaction with monarch rule, economic hardship, and demands for political reform, workers rights, and national independence.

[00:14:40]Although the Communist Manifesto did not immediately spark these revolutions, it provided a theoretical framework for understanding and challenging the existing social and economic order. In 1848, Markx along with his collaborator Frederick Engles published the Communist Manifesto. This pamphlet became one of the most influential political documents in history. It was commissioned by the Communist League, a group of radical activists. In 1917, the Rothschilds funded Lenin and Trosky with over $20 million, equivalent to around $500 million today, through the Schiff banking family to overthrow the Russians Zar in the communist revolution. Lenin's real name was actually Vladmir Ilitch Olanov and Trosky's was Lev Brostine.

[00:15:38]Both were of Jewish heritage. Following the revolution, the Rothschilds privatized the Russian central bank, leading to significant control over the entire Russian economy. It is also noted in different articles that upwards of 80% of the leadership class in postrevolutionary Russia was of a merchant or banking descent. Also in 1848, the first derivatives exchange was created in Chicago in the United States.

[00:16:10]It is the Chicago Board of Trade, Seabbot, the oldest organized futures market still operating in the world.

[00:16:18]However, it merged with the Chicago Merkantile Exchange in 2007 to become the CME Group. Chicago, thanks to the Midwestern grain and its strategic location, was developing as a major center for the storage, sale, and distribution of grain. A group of merchants who owned the plantations and farms in the South and Midwest formed the Seabot originally as a centralized marketplace for exchanging grain.

[00:16:48]Forward contracts, so-called to arrive contracts, were soon negotiated. These allowed farmers to lock in the price and later deliver the crop. Due to the seasonality of grain, Chicago storage facilities were unable to absorb the increase in supply that followed the harvest. But the same facilities were underused during the low season. Prices of grain were very volatile, and when fluctuations were too great, parties to the deal often backed out. Counterparty risks were also significant. Moreover, these contracts were not standardized in terms of quality or delivery time. One of the first improvements undertaken by the Seabot was to establish a department in 1858 which was in charge of classifying and certifying the grade of grain. It developed a system in which one of the grades was designated as the quote standard. This created confidence for buyers and laid the foundation for the market's development. By 1860, the push to reestablish centralized financial authority had taken on new urgency. During this time, key figures including prominent bankers in New York and Judah P. Benjamin, who would later become a leading figure in the Confederacy and a representative of southern plantation interests, conspired to reshape the nation's financial system. The civil war which followed was a pivotal moment in this effort. The conflict was not merely about slavery or states rights but also about consolidating economic power under the control of northeastern financial elites. The war provided an opportunity to centralize the authority to issue currency and undo the decentralized system that had been established during Andrew Jackson's presidency. Control over the issuance of money grants immense power. It allows those who wield it to influence politicians, mayors, governors, and other key figures through things like bribery, coercion, and manipulation. This power is magnified when those in positions of authority are driven by self-interest rather than moral principle. After the Civil War, with the Union's victory and the centralization of power in the Northeast, the remaining opposition to a centralized banking system was systematically marginalized. Around the same time, similar financial consolidation was occurring in Europe, for example, with the Bank of Hamburg evolving into Germany's central bank.

[00:19:30]These developments reflect a broader pattern of financial centralization and control that has gone on to shape modern economic systems. Frederick A. Delano's father, Warren Delano Jr., was an American merchant who amassed a significant fortune by smuggling illegal opium into China. He was also the maternal grandfather of US President Franklin Delanor Roosevelt. Warren Delano's wealth came from this smuggling into Canton. There was a massive demand in Europe for Chinese luxury goods such as silk, tea, porcelain, and furniture.

[00:20:08]However, Chinese demand for European goods was relatively weak, which led to a large trade deficit for European nations. To address this imbalance, foreign traders like Scottish merchant William Jardine of Jardine Matson turned to opium smuggling as a way to pay for Chinese goods. The massive influx led to widespread addiction across China and exacerbated the trade deficit, resulting in the first opium war of 1840 through 1843.

[00:20:41]The war ended with China's defeat, resulting in the loss of control over China's major ports. This period became known in Chinese history as the century of humiliation during which Western powers seized control of Chinese ports and commerce. These struggles ultimately contributed to the collapse of the last dynasty in 1911. In parallel with upheavalss in Europe, such as the attempted coup by the Boleviks in Germany, we have the 19th century British Empire dominating the lucrative but controversial opium trade in China.

[00:21:22]Queen Victoria granted the Sassoon family, a prominent Jewish merchant dynasty, a monopoly on this trade through the British East India Company.

[00:21:33]The Sassoons, originally from Baghdad, amassed immense wealth by exporting opium grown in British India to China where it caused widespread addiction and social devastation. This led to both of the opium wars. While the Sassoons held this monopoly, American firms like Jardine Mat and Russell and Company often handled the transportation. These subcontractors may have been used to distance the British crown from the trade's negative reputation. Russell and company, for example, had ties to the Skull and Bone Society, an elite group at Yale University, reflecting the interconnectedness of all of this trade and power. The Sassoons deposited their profits into the Rothschild banks, further aligning their fortunes with the Rothschilds, one of Europe's most influential banking dynasties. The two families frequently intermarried, strengthening their financial and social ties. Queen Victoria, meanwhile, benefited indirectly through taxes and royal shares of all of the trade profits. Rumors also circulated about Victoria's quote close relationship with Benjamin Dizraeli, a Jewish prime minister. But I digress. From 1865 onward, the Seabbot in Chicago made three important changes to the structure of the trading market.

[00:23:11]First, it established defined areas specifically for futures contracts on agricultural commodities. Second, contracts were standardized in terms of quality, quantity, and time and place of delivery. This change was later accompanied by the introduction of a clearing house, which reduced the counterparty risk that had plagued, as some financial economists argue, the OTC trading. The third change was the introduction of a margining system.

[00:23:45]Until the beginning of the 20th century, regulation was left to state legislation, self-regulation, and decisions by state and federal courts.

[00:23:55]It was only in 1916, after several attempts to regulate futures exchanges at the federal level, that the first federal act, the Cotton Futures Act, entered into force.

[00:24:09]The continual changes to its own regulations made by the Seabot were reactions to court cases to make trading acceptable in the eyes of state and federal legislators and to ensure the performance of the contracts that were traded on its premises. In 1888, what a year, the Rothschilds began to branch out into the weapons manufacturing business. The Maxim Nordinfeld Guns and Ammunition Company was the result of a takeover by Herum Maxum of Thorston Nordinfelt's Nordfeld Guns and Ammunition Company which occurred in 1888. Rothschild issued 1.9 million equivalent to roughly 265 million today to finance this merger. Nathan Rothschild then retained a substantial shareholding in the new Maxim Nordonfelt company and exerted his direct influence over its management.

[00:25:07]The company then became part of the borrow ship building company which was taken over by Vicker's sons and company in 1897 to form Vicker's sons and Maxim.

[00:25:19]This gave Vickers a complete naval ship building engineering and armaments capability. In 1911, the company further expanded into aircraft manufacturing and opened a flying school. They expanded even further into electrical and railway manufacturing and by 1928 they also acquired an interest in the submarine.

[00:25:42]Vicker's son and Maxim, later known as Vickers Limited, became known as the most significant arms manufacturer during World War I, producing a vast quantity of the weapons and ammunition for the British Empire and its allies.

[00:25:59]The company played a crucial role in supplying the war effort, particularly with its iconic Vicor's machine gun, which became a staple of the British Empire. By the year 1916, it can all but be established that Germany was winning World War I. At this time, the United States had not yet entered the war. Then on April 4th, 1917, the US entered World War I with the justification being the sinking of an American ship by German yubot that occurred the whole way back in May of 1915.

[00:26:37]What was not mentioned is that the American ship that was sunk was owned by JP Morgan and it had actually been filled with hundreds of thousands of rounds of ammunition. So, it essentially exploded on contact. One year after the formation of the US Central Bank in 1913, Germany entered World War I and began its invasion of France. After 3 years of intense fighting, by 1917, the war seemed to be nearing its end with Germany poised to win in a matter of months. At this critical moment, JP Morgan, having earned around $80 billion adjusted for inflation in commissions from selling war bonds, feared the massive liquidity that had made him the most powerful financer on the planet would soon dry up. Morgan had his own financial liabilities as well. He had personally lent about $30 billion adjusted during the war, and if Germany won, there was a significant risk he would never see his loans repaid. The sinking of JP Morgan ship and entry into the war appeared to be something that was planned. On May 7th, 1915, the German Ubot U20 torpedoed and sank JP Morgan ship, a British cruise liner traveling from New York to Liverpool. Of the 1,959 people on board, over 1,100 perished. This tragic event was used as the key justification for the United States entering the war almost two years later on April 6th, 1917. While hundreds of thousands of American lives were lost during the war, JP Morgan acting as the US agent for the Rothschild's banking family ensured that his financial interests were protected.

[00:28:43]The continuation of the war enabled Morgan to secure repayment for his enormous debt. The German nation ultimately lost the war and the Treaty of Versailles signed in 1919 imposed harsh penalties on the country, crippling its economy and devastating his people. This treaty also set the stage for the rise of extremism in Germany. Meanwhile, in the United States, populist politician Huie Long was gaining traction as a potential presidential candidate for the 1936 election. Long, known for his anti-war stance and criticism of President FDR, positioned himself as a challenger to FDR's policies. However, Long's political ambitions were cut short when he was assassinated in 1935 by Carl Weiss, an event that remained shrouded in controversy. Long's death removed a significant obstacle to FDR's reelection and the continuation of his administration's pro-Semitic policies.

[00:29:50]FDR's administration with its ties to influential financial institutions such as his uncle Frederick A. Delano who was a founding member of the Federal Reserve played a key role in shaping US economic and foreign policy during the interwar period. The attack on Pearl Harbor on December 7th, 1941 was a pivotal moment in World War II, drawing the United States into the conflict. However, there has been significant debate and speculation over whether the United States had a prior knowledge of the attack. Evidence suggests that American intelligence had prior knowledge of an impending Japanese strike. For example, intercepted communications and decoded messages hinted at Japan's intentions.

[00:30:42]One such piece of evidence comes from former chief warrant officer Ralph T.

[00:30:47]Briggs, a radio intercept operator stationed in Maryland in 1941.

[00:30:53]In an interview that was later declassified by the National Security Agency, Briggs recounted intercepting a coded message from Japan in early December 1941. The message which said Hagashi No Kazyam, East Wind Rain was understood to signify a break in diplomatic relations with the United States. This along with other intelligence of the time seems to be proof that the United States had at least partial forewarning of an impending Japanese aggression. It is speculated that Roosevelt's administration, aware of Japan's growing desperation due to economic sanctions and the oil embargo, allowed the attack to occur to galvanize public support for entering the war. But again, this is all just a theory. Prior to Pearl Harbor, American public opinion was overwhelmingly against involvement in World War II. For example, polls from 1940 and 1941 consistently show that a majority of Americans opposed entering the conflict with only a small percentage supporting actions that might provoke Germany or Japan.

[00:32:12]Prescott Bush, the father and grandfather of two future US presidents, had business interests in Germany that suffered after the outbreak of the Second World War. On October 20th, 1942, the United States government seized the assets of the Union Banking Corporation.

[00:32:33]The shares of this bank were owned by Prescott Bush, e-oland Haramman, and a couple of leading members of the Nazi party. Under the Trading with the Enemy Act, the government took control of the Union Banking Corporation, a company that had been managed by Prescott Bush and his father-in-law, George Herbert Walker. The Union Banking Corporation was a New York investment bank incorporated in 1924.

[00:33:01]The now former US Senator Prescott Bush was the founding member. On July 22nd, 1946, just 10 months after the end of World War II, the King David Hotel in Jerusalem was bombed by the Jewish Urggon terrorist group led by Manahheim Bein, who would later become the prime minister of Israel. At this time, the British Empire still controlled the region known as Palestine, and a Jewish nationalist group sought to establish the Jewish state in that area. To achieve this goal, Jewish militant organizations operated terrorist cells within British controlled Palestine, culminating in the King David Hotel attack, which killed 91 people. The bombing was intended to pressure the already weakened British Empire to withdraw from Palestine, paving the way for the creation of the Jewish state.

[00:34:03]The attack significantly influenced British policy, leading to their decision to withdraw from Palestine in 1947.

[00:34:12]This withdrawal set the stage for the United Nations partition plan which proposed dividing Palestine into separate Jewish and Arab states. In 1948, the State of Israel was officially established. In 1949, the American Zionist Council AZ was founded. Its primary function was to channel funds and other resources from Israel to members of the US Congress, effectively bribing them to support pro-Zionist, pro-Israel legislation. For example, for 5 years, the AC operated as a taxexempt organization, avoiding scrutiny over its financial activities. However, it eventually faced pressure from Congress to disclose the sources of its funding and to register under the Foreign Agents Registration Act, which requires organizations acting on behalf of foreign governments to report their activities and finances. President Kennedy's brother, Robert F. Kennedy served as attorney general and spearheaded a vigorous campaign through the Department of Justice to dismantle organized crime.

[00:35:32]The mafia, which had long-standing connections to bankers, using them as their accountants, became a central focus of RFK's effort. This crackdown on organized crime was part of a broader initiative by the Kennedy administration to tackle corruption and disrupt criminal networks that had deeply infiltrated and influenced American society and institutions such as the FBI and the CIA. On October 23rd, 1963, Robert F. Kennedy, then serving as attorney general, ordered a letter to be sent to the American Zionist Council, demanding that their organization register as a foreign agent under the Foreign Agents Registration Act. This move was part of the Kennedy administration's broader effort to increase transparency and to curb foreign influence. Just 6 weeks later, the ACC was completely dissolved and all of its functions and activities were taken over by the American Israel Public Affairs Committee.

[00:36:38]In 1965, Israel is theorized to have infiltrated and stole over 600 pounds of highlyenriched uranium from the Nuclear Materials and Equipment Corporation, NUMC, in Apollo and Parks County, Pennsylvania. This is known as the Apollo affair. The stolen material formed the foundation of Israel's nuclear weapons program, marking a significant turning point in the development of its military capabilities and a turning point in the history of mankind. Also in 1965, Congress passed the heart seller act which fundamentally altered US immigration for the first time in over 175 years. This act abolished the national origins quota system which had favored immigrants from Western Europe. This shift dramatically changed the demographic makeup of the United States, reducing the percentage of the population with Western European ancestry from over 90% to 40% and declining rapidly over the decades that followed. It also marked a turning point in American history and could be described as the fatal bullet of the nation's identity. Ironically, when this bill was passed, Lynden B. Johnson, who had been JFK's vice president, downplayed its significance, stating that the bill was quote not a revolutionary bill and that it quote does not affect the lives of millions.

[00:38:18]This assessment would prove to be vastly understated as the long-term effects of the Heart Seller Act continue to shape the United States to this day. On April 4th, 1968, Martin Luther King Jr. is assassinated in his hotel room in Memphis, Tennessee. This assassination would go on to become a key and core piece to the new foundational myth of America created after World War II. It was about discarding the old. Thomas Jefferson, the evil Andrew Jackson who had waged war against the banks. But most importantly, it was a national shift toward Zionism, which became prevalent amongst the ruling class. This new foundational myth was essential as the goal seemed to be to eradicate and replace the entire living population of the US with non-western European groups.

[00:39:15]Two months later on June 6th, 1968, John F. Kennedy's brother, Robert F. Kennedy, is assassinated in Los Angeles by an Israeli citizen named Sirhan Bashari Sirhan. The investigations into the mafia by RFK, the CIA, the FBI, and the attempts to get Israeli organizations to register under the Foreign Act all ceased the moment RFK was assassinated.

[00:39:43]From this moment forward, the US really appears to become nothing more than an economic zone controlled by certain banking interests. The US dollar would see rapid devaluation as money was printed to the tune of hundreds of trillions to fund these different wars overseas. But in the end, that is only a theory, a theory of banking. I'd love to hear your thoughts and ideas down below, and I can't wait to talk more on the next video.