Central Banking and war

The 20th century will be remembered for it’s messy war’s. Mass produced machine guns, artillery, tanks airplanes slaughtered millions of conscript soldiers and civilians in prolonged wars. But how where these wars financed? By the governments printing press. Most historicans don’t care about economics. But I challenge you to find any prolonged war that has not for the largest part been financed out of the governments monopoly on issuing currency.

The point can be seen in the Guns Versus Butter model. Most people prefer butter for guns. But as Hermann Göring announced in a speech: “Guns will make us powerful; butter will only make us fat“. How to give people guns when they really want guns? Use the Central Bank!

So the Nazi’s did. You can read the history of the MEFO bills here. The Nazi’s created a fake company which issued bills convertible into reichmark upon demand. In short the armament industri got paid out of the printing press. Put the other way. If there were no German Central bank there would be no guns and no world war two.

These payment of course came at a cost. By diluting the currency the workers got less for their wages and the entrepeneurs got less for their profits. The Nazi’s used the Cental Bank to give the germans guns instead of butter.

This histroical example goes straight to the core of the idea og giving the state a monopoly of issuing currencies: It is s tool for taxing the population against their will.

If you oppose war and mass killings you should oppose the central bank and its monopoly on issuing currency.

Tips oss hvis dette innlegget er upassende

Filed under: on September 5, 2010 at 10:30 pm Comments Off

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