A Chart Every Goldbug should Understand and Every Cryptobug should Wish to Change

"Meanwhile the Commons were busied with financial questions of grave importance. The estimates for the year 1694 were enormous. The King proposed to add to the regular army, already the greatest regular army that England had ever supported, four regiments of dragoons, eight of horse, and twenty-five of infantry. The whole number of men, officers included, would thus be increased to about ninety-four thousand." —Thomas Babington Macaulay, The History of England from the Accession of James the Second (London y. 1855)

Envying the "successful" Dutch model of central banking it is no coincidence the Bank of England was founded on 27. July 1694. Taxpayers rejected attempts to increase the tax for war payments. It is here we discover the true origin of central banks, and their sole purpose to finance state ambitions, most importantly war by circumventing the people's will.

"Bank, Interiör från Bank of England vid midten af 1800-talet, Nordisk familjebok"

I recently reconstructed the Wholesale/Producer Price Index to 1765. The inverted chart I found in Howard S. Katz's book The Warmongers mostly speaks for itself, displaying war as a product of fiat devaluation. Fiat, whether gold backed or not, is one of several key facilitators spurring greater world conflict.

View larger image.
"The Producer Price Index (PPI) program measures the average change over time in the selling prices received by domestic producers for their output." —Bureau of Labor Statistics

It is through the means of devaluation(inflation) when banking speculators have made some of the most ludicrous and enormous sums of wealth. For instance if there was no devaluation to profit from,—the northern banks wouldn't of supported the Civil War.

"It brought prosperity to the banks, to the brokers—who by 1863 were averaging $3,000 a week in commissions alone—and to those who had guessed right about the direction of the market." —Robert Sobel, The Big Board, (New York, The Free Press, 1865), pp. 71-72

Though unsuccessful, Kissinger and Nixon decided to poke Japan in the face in the pursuit to stir up a trade war in 1973. As a direct retaliation of embargo Japan was contemplating military build up; a prime example of why sanctions and embargo don't work, but more importantly: who was pushing the 1971 "Nixon Shock" into a larger conflict than it should have been?

"The necessity to assure reliable imports may lead Japan into a more assertive political role abroad than she so far has been willing to undertake. Some observers here contend that the threat of import shortages will lead Japan into a major expansion of its military forces, which would be deployed overseas to protect sources of supply." —Masakago Yoshimi, " Imports, the Lifeblood of Japan." New York Post, July 1, 1973, Section III, p. 7.

However before this situation could escalate any further we all know what happened to Nixon a year later.

I could spend many more hours digging up additional examples from each war during the past two centuries. Perhaps I'll return to those in another post, but I would rather suggest you read The Warmongers.

What impact will cryptocurrency have on world conflict? Please leave your thought(s) below.