The American Revolution was won militarily but lost monetarily. The reason we went to war in the first place has been forgotten by most. The Declaration of Independence and the Bill of Rights have not been implemented. We live under an authoritarian oligarchy, precisely what we fought to throw off. What happened? The money creating power belonging to society was usurped by private banking interests even though it is society that gives the money value.
“The viability of the colonists to get power to issue their own money permanently out of the hands of King George III and the international bankers was the prime reason for the revolutionary war.” — Benjamin Franklin
The American Revolution was fought for the same reason all revolutions are fought, to throw off authoritarian rule but what sparked the revolution was that the British had outlawed the colonist’s money systems plunging them into deep economic misery. The experience of authoritarian European culture colliding with egalitarian native cultures had helped the people see, by contrast, what real freedom was and they wanted it. Despite their horrific efforts the people still ended up under authoritarian rule wearing but a mask of democracy. Systems have been created we no longer think about, insidious systems of control, that just do their thing. 98% of our mental activity is subconscious so we are unaware of most of our thinking. We reason through layers upon layers of assumptions, associations, emotions and experiences, and pass it all through cognitive biases for confirming what we already believe. No system reflects this fact more than our monetary system, one of the most basic systems of a culture. Money shapes the flow of what a culture creates or destroys, it influences human behavior and every other system culture creates. Acquiring all the necessities of life, our livelihoods depend on it.
It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning. — Henry Ford
Our monetary system works like this. Our money is created whenever someone, be it an individual, business or government, borrows money from the private commercial banking system. The bank simply creates the money by entering the amount into your account. However, only the money for the principle is created, the money for the interest that you are required to pay is not. That money must come from money created as principle from someone else. This means that there must be losers in this system. It is not hard to see that without continuous growth there is not enough money to pay all the interest which goes to the banks largest depositors, often the bankers themselves. In this way our system creates global poverty while systematically transferring wealth to a few at the top. This gives them the power to decide what gets funded and what does not, giving them a unique privileged position in any market. Are we ready to revive the revolution yet?
This kind of a money system began in the 1600s when those who had accumulated great sums of money began lending money to nations to pursue wars. Not only that but they used manipulation and trickery to create wars and then financed and supplied both sides in the war. Such massive debts owed to, what today are banks, soon allowed the banks to gain control over governments by controlling their money supply. By controlling the government’s purse they could control what policies were implemented and enforced. This began with Sweden in a war with Denmark, then England and progressed to envelop the world. However, the founding of our nation represented one of the significant challenges to the excesses and crimes of private power.
“The bank hath benefit of interest on all moneys which it creates out of nothing.” – William Paterson, founder of the Bank of England, 1694
Out of necessity the colonies became a laboratory for monetary solutions early on. The states devised many monetary systems and many failed but the successful ones created intense tensions with England. Once they were outlawed, war ensued and we won, militarily. The Constitution attempted to devise a way to avoid authoritarian rule, having just fought a war to defeat it. The Separation of Powers and the Bill of Rights seemed to do that but the private financial interests of the day lobbied hard to prevent the nation from being able to issue its own paper money. Ironically it was that very power, established by the first Continental Congress, to issue the Continental currency spent into the economy interest free, that funded the revolution. The Continental, as Paine, Jefferson and Franklin recognized, was the revolution. Congress created $200 million in Continentals, but the British flooded the colonies with a billion in counterfeits in an attempt to make them worthless. In the end it did but not before if funded almost 6 years of war. The last 6 months were funded by wealthier patriots and some borrowed from the French. By not clearly defining the nation’s monetary system, a back door was created in the Constitution that allowed the private financial interests to enter and establish the authoritarian government which we now suffer under.
While the Founding Fathers made provisions to keep authoritarianism out politically and religiously they had allowed it to sneak in monetarily! James Madison joined Jefferson in opposing the actions of the first U.S Secretary of the Treasury, Alexander Hamilton, to give the nation’s monetary authority to a bank run by his friend and future partner, Robert Morris. The bank was modeled after the privately owned Bank of England which gave good reason for Thomas Jefferson to say,
It remained a major political issue for 120 years. While the Continental currency funded the founding of this nation the people’s monetary right was not exercised but once more and that was to defend the nation from dissolution, the Civil War. The bankers would not lend Lincoln the money to defend the nation without an exorbitant interest rate that would indebt the nation for generations so he issued the Greenback.
“The money powers prey upon the nation in times of peace and conspire against it in times of adversity. It is more despotic than a monarchy, more insolent than autocracy, and more selfish than bureaucracy. It denounces as public enemies all who question its methods or throw light upon its crimes. I have two great enemies, the Southern Army in front of me and the bankers in the rear. Of the two, the one at my rear is my greatest foe.” -Abraham Lincoln
The Greenback was public money issued not as debt but was an asset and was on the nation’s books as such until the mid-1980s. The bankers hated it and tried every trick to get rid of it because publicly issued money just continues to circulate providing goods and services. Money they wanted to be lending at interest. After the war the populist movement demanded that the government issue more Greenbacks for rural roads, schools, utilities and libraries which would have created millions of jobs and done it all debt free. It is what Coxey’s Army was all about, the first major protest in our nation’s capital. It remained a major political issue until 1913 when the Federal Reserve was created. Instead of solving the nation’s economic problems, however, it exacerbated them, even causing the Great Depression, but firmly entrenched the bankers private money monopoly.
Now, knowing all this, is it not time to revive the American Revolution? Not a violent revolution but an electoral revolution that will fulfil the promise of the American Revolution and establish a non-authoritarian government, an egalitarian government, of, by and for all the people.
We now know how to design a monetary system that will build community wealth, promote positive behavior and fund the New Green Economy. Vive’ Revolution!
The Green Party Monetary Plan:
Transform our economic system by changing our monetary system from a private monopoly to a public utility. The steps are outlined in our platform, it is the American Monetary Institutes proposal which was introduced to Congress as the NEED Act.
1) Transfer Federal Reserve functions to the US Treasury where a Monetary Authority will be created to monitor prices and adjust the money flow to avoid inflationary or deflationary trends.
2) Change accounting rules to prohibit banks from creating money as debt and ending what’s known as fractional reserve banking.
3) Empower Congress to create new US Money spending it into circulation, for food, fuel, energy and transportation infrastructure, health care and education. Funding the Green New Deal will create millions of new jobs moving us toward full employment within months.
These steps will eliminate the largest creator of economic hardship and inequity the world has ever known. Considering the mega trends threatening the well-being of people and planet today it is time to make this change for the benefit of all.