The Lost Science of Money – Wars Are Won By Bankers, Not Armies

The Lost Science of Money: The Mythology of Money – The Story of Power

by Stephen Zarlinga

American Monetary Institute (2002)

Book Review

This book, by co-author of Congressman Dennis Kucinich’s HR 2990 to abolish the Federal Reserve (see HR2990: Historic Bill to Abolish the Federal Reserve), is one of the most amazing books I’ve ever read. At 775 pages, the lowest price I could find for a used copy was $225 from Alibris. Fortunately it’s also available in PDF format at Lost Science of Money

It’s clear from Zarlenga’s extensive documentation and footnotes that the research for this book took decades. He essentially rewrites western history dating back to the ancient Sumerians. His goal is to expose and correct all the distortions and myths introduced into official history historians in the pay of merchants and bankers. Both are fiercely committed to perpetuating our current global monetary system in which private central banks create and control the money supply.

Among many others, two of the myths Zarlenga explodes are that the Roman Empire collapsed due to barbarian invasion (he demonstrates very convincingly that Rome collapsed due to a debasement of their currency) and the often repeated claim that excessive government printing of money was responsible for the deadly inflation in the early years of the Third Reich – as Zarlenga points out, it was actually the privately owned central Reichsbank that issued the money and created the inflation.

The Concept of “True Money,”

Zarlenga begins by establishing a clear difference between “true money,” which he defines as money with a fixed value set by law and “commodity money,” in which private merchants and banks issue and control the value of money. In the rare historical periods where governments have issued and controlled money by law, the result has been long periods of political stability and flourishing industry and culture.

The Romans enjoyed the longest continuous period (200 years) of monetary stability. Roman leaders maintained control of their money by prohibiting silver and gold coinage for domestic use – issuing fixed value copper and bronze coinage instead. In this way they prevented foreign merchants from capturing control of their money supply and manipulating the value of their currency.

He Who Controls the Money Controls the World

Zarlenga carefully traces how after the fall of the Roman Empire, control of western money shifted from Constantinople (after the 4th Crusade which sacked Constantinople – see link), to Venice, to Portuguese traders in Antwerp (after they opened the trade route around the southern tip of Africa), to Amsterdam (following the civil war splitting the Netherlands into Holland and Belgium), to London (after the Dutch prince William of Orange seized the English throne). In each case, control of the money supply was far more important than military strength in consolidating political control.

Zarlinga also clarifies, though careful research, the historical role played by the Knights Templar and Jewish merchants and money lenders in the development of global monetary centers.

The Dutch Usurper Who Chartered the Bank of England

One of the sections that interested me most concerned the founding of the Bank off England – which set the global standard for all private central banks – in 1694. Previously I hadn’t realized that the Bank of England was started by a Dutch king (William of Orange), who usurped the English throne from James II. Nor that his purpose for chartering the Bank of England was to advance the interest of the Dutch merchants and bankers who initially controlled it.

“True Money” in the Americas

I also enjoyed the detailed section outlining the history of government issued money in the US. Again Zarlenga presents extensive and convincing evidence that it was the ability of colonial governors to issue their own money that enabled commerce and industry in the 13 original colonies, as well as enabling them to organize a successful war of independence against England.

Zarlenga also describes in detail the battle Jefferson, Andrew Jackson and their allies fought against the creation of a privately controlled central bank, as well as the immense popularity of the Greenback Congress issued during the Civil War – and the immense national uprising (the populist movement) launched at the end of the 19th century to save them.

The Federal Reserve Engineers the Great Depression

Obviously the book wouldn’t be complete without a chapter on the criminal conspiracy that lead to the formation of the Federal Reserve in 1913, the Federal Reserve’s role in engineering the Great Depression 26 years later, and Roosevelt’s prolonged battle with Wall Street to implement the New Deal recovery.

HR 2990: Historic Bill to Abolish the Federal Reserve

In 2011, to address the failed US recovery, former Congressman Dennis Kucinich (D-Ohio) and Congressman John Conyers (D-Michigan) introduced HR2990, the National Emergency Employment Defense Act. The bill proposed to abolish the Federal Reserve system and end the ability of private banks to create money out of thin air.* If the bill had passed, it could have instantly ended all federal deficits and debt, while simultaneously providing trillions of dollars for vital infrastructure and restoring funding to states and local authorities for education, hospitals, clinics, housing, police, libraries and other programs cut after the 2008 economic crash.

The late Stephen Zarlenga, founder of the American Monetary Institute and co-author of the bill, always found it ironic that in 2008-2099 the US Treasury “printed” between $3-15 trillion of new money (aka quantitative easing) – as HR2990 proposes. However instead of spending this government-created money into the economy as HR2990 specifies, they handed it over to private banks. They in turn used it to pay obscene CEO salaries and to inflate their stock prices by buying back shares.

Among other provisions, of HR2990 would

  • Dismantle the Federal Reserve and transfer its powers to a new Monetary Authority operating under US Treasury oversight.
  • Replace all Federal Reserve notes with United States Money.
  • Instruct the Secretary of the Treasury to create United States Money to address any and all deficits resulting from a discrepancy between tax receipts and funds appropriated for government services.
  • Subject to criminal and civil penalties any person [ie banks] who creates or originates United States Money by lending against deposits through “fractional reserve banking.”
  • Prohibit borrowing by the Secretary or by any federal agency or department, independent establishment of the executive branch, or any other instrumentality of the United States (other than a national bank, federal savings association, or federal credit union) from any source other than the Secretary.
  • Require the Secretary to begin to pay off all outstanding US debt payment in full in United States Money.
  • Prescribe requirements for the entry of United States Money into circulation.
  • Require the Monetary Authority to instruct the Secretary to disperse monetary grants to states for public infrastructure, education, health care and rehabilitation, pensions, and paying for unfunded federal mandates.
  • Direct the Secretary to make recommendations to Congress for payment of a tax-free Citizens Dividend to all U.S. citizens residing in the United States in order to provide liquidity to the banking system at the commencement of this Act, before governmental infrastructure expenditures have had a chance to work into circulation.
  • Prescribe requirements for federal funding of education programs, coverage of any deficits in Social Security Trust Fund account, a universal health care plan, resolution of aspects of the mortgage crisis, and a program of interest-free lending of United States Money to state and local governmental entities.

As Kucinich points out in the preamble to his bill, Article 1 Section 8 of the US Constitution places the power to create money in Congress. In 1913, Congress made the foolhardy decision to delegate this bower to the Federal Reserve system and private banks. Predictably the latter operate the US monetary system (and money creation) in such a way as to their profits – and not for the benefit of the American people. The result has been increasing economic instability, skyrocketing income inequality and growing power of private banks, such as Goldman Sachs and JP Morgan – to the extent they virtually control our so-called democratic system of government.

More information on the American Monetary Institute at their website: http://www.monetary.org/

Link to HR2990: HR2990

In the video below, Kucinich** speaks about HR2990 on the floor of Congress in 2013.


*Contrary to popular belief, the government doesn’t create the dollars in circulation in the US. The vast majority is created by private banks out of thin air when they initiate loans. See How Banks Invent Money Out of Thin Air

**Like Bernie Sanders, Kucinich was more of an anti-coproratist than a Democrat. He opposed military intervention in Iraq, Libya, Syria and the Patriot Act. As a presidential candidate in 2004 and 2008 he called for single payer health care, free education (including pre-school and university), instant run-off voting, a moratorium on GMO crops, withdrawal from the WTO and NAFTA, ending the death penalty and the War on Drugs and lowering the voting age to 16. He collaborated with libertarian Republican Ron Paul on a number of bills and currently serves on the Ron Paul Institute advisory board. He lost his seat in 2013 after the Ohio state legislature re-districted his Congressional District out of existence.

The Ugly Truth About Monsanto and Genetic Engineering

GMO-OMG

Jeremy Seifert (2013)

Film Review

GMO-OMG is an excellent first documentary by a young father on a quest to understand the science of GMO technology and its impact on the environment and human health. The film starts by focusing on the general ignorance of the American public about GMOs. This contrasts markedly with other countries, where popular pressure has led many governments to ban GMOs.

What filmmaker Jeremy Seifert describes, in essence, is the systematic hijacking and poisoning of the US food supply by three companies (DuPont, Monsanto and Syngenta), all without the knowledge of the American people. At present 85% of all corn grown in the US is genetically modified, 91% of all soy and 90% of all beet sugar. In addition, most non-organic meat and dairy products come from animals fed on GMO corn and/or soy.

Seifert first learned about the potential dangers of GMOs due to a major anti-GMO protest in Haiti following the 2010 earthquake. Monsanto’s response to the earthquake was to donate 470 tons of GMO seeds, which protestors burned because of the threat they posed to their seed stock and food sovereignty.

The film highlights four broad areas:
• The powerful Monsanto lobby that engineered FDA approval of GMO seeds in the 1990s without totally inadequate scientific evidence of their safety.
• Recent research into the negative health impacts of GMOs.
• False claims by Monsanto and GMO seed merchants and farmers that GMO technology, which they erroneously claim increases yields, is the only answer to global hunger.
• Monsanto’s determination to stymie consumer choice by blocking GMO labeling laws.

Revolving Door Regulation

As Seifert ably demonstrates, the FDA is a typical “revolving door” agency. in which FDA chief Michael Taylor has alternatively worked for the FDA and Monsanto over many years. In this regulatory environment, where corporations practically regulate themselves, the FDA approved GMO seeds as GRAS (Generally Recognized as Safe), despite the absence of a single, longitudinal study demonstrating their safety in humans. None of the Monsanto studies submitted for FDA approval were peer reviewed* or longer than three months. It so happens Monsanto’s studies can’t be peer reviewed because the company refuses to release the raw data. In the research described below, rats fed Roundup Ready Corn only developed health problems after month four.

Health Problems in Rats Fed Roundup Ready Corn

In a recently published two year study by French researcher Dr Giles-Eric Seralini, rats fed a steady diet of Roundup Ready** corn developed many more mammary tumors than control rats. This was in addition to kidney, liver and pituitary damage. It remains unclear, however, whether these health effects related to the GMO corn itself or from traces of Roundup in the feed from heavy herbicide spraying. More recent studies have shown that Roundup (aka or glyphosate) causes serious health problems on its own (cancer, kidney damage and reduced sperm counts).

Organic Farming Produces Better Yields

Seifert interviews several organic farmers in the film, who debunk Monsanto claims that GMO crops increase yields. The farmers refer to thirty years of data showing that organic crops consistently outperform GMO crops, particularly during droughts and floods. On average, organic methods produce a 30% better yield. In part, the poor performance of GMO crops relates to the creation of superweeds that can’t be killed by Roundup or any other herbicide.

Monsanto Spends Hundreds of Millions Blocking GMO Labeling Laws

Seifert also interviews Congressman Dennis Kucinich (before he lost his seat in 2012) about his GMO labeling bill. Since 1997, the EU has required all foods (except meat and dairy) to be labeled for GMO ingredients. Because European consumers refuse to buy products containing GMOS, Monsanto aggressively opposes GMO labeling in the US. Seifert also discusses the GMO labeling laws passed in Vermont*** and Connecticut, which were subsequently repealed after Monsanto threatened to sue both states. He also talks about the hundreds of millions Monsanto has spent in around twenty other states to block anti-GMO legislation in 32 other states.


*Scholarly peer review is the process of subjecting an author’s scholarly work, research, or ideas to the scrutiny of others who are experts in the same field.

**Roundup Ready corn is a plant which has had its DNA modified to withstand the weedkiller Roundup. This allows a farmer to kill weeds by spraying massive amounts of Roundup on his fields without killing the corn.

***Vermont enacted a new GMO labeling law in May 2014. As threatened, the National Association of Manufacturers, the Grocery Manufacturers Association and other trade associations have filed suit to block the law. A federal judge has already denied their request for an injunction to block the law’s implementation: see Vermont GMO Labeling Injunction Appeal

https://vimeo.com/106081930