Rouble Nationalization – the Way to Russia’s Freedom. Nikolay Starikov

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СКАЧАТЬ successful. In one fell swoop, John Law solves all the financial problems of the royal house: he lends 100 million livres to the Government at a 3% annual interest rate. For reference: when the Sun King died there was as little as 700 thousand livres in the treasury.[85] At the end of 1716, on the other hand, when John Law turned his printing machine on, the budget deficit had reached 140 million livres[86] and France could now proceed with its global expansion as it had the money for it.

      The French copied the system established by the English not only in its essence but also in details. The authorities leased to John Law the exploitation of gold deposits in Louisiana as well as all trade overseas. It would all be dealt with by the India Company which was a full copy of the British East India Company. Shares of the new company were at first sold to anyone and later on, only to those who paid with bank notes which could be received in exchange for gold coins. 'It turned into a competition – who could get rid of their gold first'.[87] But the success did not last long, in fact it was surprisingly short. The credit and monetary basis of the French expansion was destroyed within literally a few months.

      This is the chronology of prosperity and immediate death of the Bank of England's clone in France. In January 1720 banker John Law rises on the surge of phenomenal success of his creation and is put in charge of controlling all financial affairs of France, since the Bank which he was the head of had just lent France 100 million livres. And at this point something terrible happened. 'Immediately and very rapidly disturbing news spread around Paris and the whole city found itself in the state of atrocious panic', recalls the French writer Guy Breton in his book 'Love Stories throughout the History of France'.[88] And already in early 1720 those who wanted to exchange their paper money back to gold started applying great pressure on the bank. At first, the exchange had to be slowed down and later on frozen altogether.[89] When did it happen? In February-March, 1720.

      Since it all happened such a long time ago, it is hard to track how the panic among shareholders was organised, but in my opinion those technologies were not very different from the ones used today. I would like to draw your attention to the fact that it happened three years after the Bank started operating, which means that at the beginning it was doing pretty well. And then, all of a sudden, things got worse – after the record-breaking loan of 100 million livres received by the government. Was this a coincidence? Judge for yourself – the blow was quick and merciless. The Bank that issued 3 billion worth of paper money under the warranty of 700 million in coins was unable to pay back. But the French Government did not give up without fighting. And it managed to find a very 'original' way out. As the population would not want to use paper bills and preferred coins… using coins should be prohibited. 'The decree of 11^th March 1720 banned using coins from 1st May onwards; if found on someone, coins were to be confiscated'.[90]

      You can imagine the reaction this decision caused in France. Of course, universal jubilation and enthusiasm of the public. After this decree, the popularity of paper money went down to the very bottom, as well as the popularity of the royal power. Everyone started hunting the forbidden coins and avoiding the allowed banknotes. And this quickly ended in a catastrophe. The next decree published on 22^th May 1720 announced a reduction of the nominal rate of banknotes by half.[91] Therefore, those who obeyed the previous decree and had started using paper money immediately lost half of their savings. Then, on 10^th October 1720 a third decree was published which announced that banknotes would no longer be used after 1st November 1720. Small banknotes were to be exchanged for state bonds with another half-reduction of the nominal rate.[92]

      As a result, obedient citizens were quickly robbed twice. Obviously, the royal government which did all these tricks (very similar to Russian reforms) became very unpopular. It was then that the hatred for the French monarchy was planted which would lead to a revolution in 1789 and would completely destroy the royal authority. In November 1720 the Central Bank went bankrupt and its founder had to flee from France a month later. It would be interesting to find out where, because it would shed light on many things…

      I do not know much about the following years of the founder of the 'printing machine' in France. But I do know what happened to the founder of the Bank of England. As we remember, William III of Orange, the English king, had a deal with bankers. And he kept his promises. Possibly because his death was also very timely. In March 1702 he passed away in the Kensington Palace of… (not again?!) injuries he got as a result of a fall off his horse.[93] Could this have happened? Yes. Only two facts seem suspicious: the similar death of the Duke of Berry and the official reason of William's death as it was announced. What was it exactly that caused his death? William died of pneumonia, which was a complication to a broken shoulder, which the King broke when he fell off the horse. Who would have thought that a broken shoulder can start pneumonia? What is the connection between a fracture and pneumonia? It is all rather interesting, is it not? And rather suspicious, too…

      The founder of whatever it is, is needed for a figurehead. It is this king that signed all the laws that the bankers needed, he gave them everything they needed at the time. The following kings would receive the established system as legacy. And the secrets of William's agreements died with him and his descendants were left with the King's stern look from the full-dress portrait. The Bank of England would be a given entity for the new monarchs, certain legacy and an irreversible decision of their ancestor.[94]

      It was high time they started thinking of further steps in establishing world hegemony. There had always been one means to achieve that – by declaring a war. The British elite, led by bankers, added another one to the world's geopolitical arsenal, and it was special operations. Both should be generously accompanied with money, seeing that now it was made out of nothing. The War of the Spanish Succession was the beginning of a long way of the 'printing machine' to the July morning in 1944 in Bretton Woods, where the pound sterling passed the baton to the dollar. When it was time to change location the 'printing machine' moved overseas where it was more secure.

      But before that there was WWI which destroyed the golden rouble and the golden Deutsche Mark. They were followed by the currencies of the Austro-Hungarian Empire and the Ottoman Empire. Only one step was left till the world supremacy, only one world war. And the scenario of the Second World War which was written in London was very different from the one that happened in reality.

      …And the most important rule is that there are no rules.

      3

      Six Spy Stories, or The Amazing Adventures of Ribbentrop in Russia

      The Englishman is superior to the German in one respect – that of pride. Only the man who knows how to give orders has pride.[95]

Adolf Hitler

      Analysing results of battles I inevitably came to the conclusion that it was not only courage of infantry and audacity of cavalry and artillery that determined the result of many battles but mostly this damned invisible weapon called spies.

Napoleon Bonaparte

      It is always pleasant to fight with someone else's fists. The advantages are numerous: all the losses are incurred by someone else's economy all the crimes are committed by someone else's army. Another country spends the money, another people exhausts its economy. And can you fight without stressing your own economy? No, this is simply not possible. Military expenses can bring any successful nation to its knees. This is the reason why it has always been important to enter a war last. Therefore, СКАЧАТЬ