Have you read Dr. Richard Hudson’s take on the history of money? If so, he promotes an alternative version of history that sounds like it is part history, part archeology, part linguistics, part economics and part religion. If he is correct, it explains the origin of many things under discussion in these posts and on this site in particular.
He claims to have studied ancient Sumerian and Babylonian cuneiform tablets with the goal of making accurate interpretations lacking in the past so he could delve into 5,000 years of history of what constitutes money, who created it, why they created it and who controls it. Along the way he posits that the kings and tyrants of old were really the “good” guys because they created credit for their subjects to purchase the necessities of daily life and to “run a tab” that was paid in kind (crops) at harvest. The “bad” guys were the merchants and traders who mainly dealt with foreign trade for essential items not present in the realm. If the crops failed, the king would forgive the debt. Since any excess debt would compound and grow faster than the local economy, every so often a “jubilee” would be declared for all debt (even debt with merchants). Debt included indentured servitude as well a debt denominated by amounts of silver.
At first the foreign goods were bartered for with locally produced goods, then for silver which was accumulated from trade profits. It was these merchants who used their profits to make loans to the king to fight foreign wars and evolved into the powers behind our financial system in the west. Obviously, these merchants did not like debt forgiveness and wanted the king to enforce their rights to collect the debt from his subjects (via taxation, inflation through fiat money, etc.).
I know that this is a simplistic explanation of his many books on the subject that it is offered as a brief explanation to Dr. Hudson’s findings for those who do not know who he is. He also touches on religion with regard to Christianity as it developed in the east and western Roman Empire and proposes that the Roman Church was the principal cause of the rise of the merchant class in western Europe when they were used to finance Church conquests over the Eastern Church.
With respect to finding answers to the many questions raised herein of who really rules the world, Dr. Hudson clearly believes it is the international bankers and those shadowy figures who own and/or control international finance. This is not a new finding unique to Dr. Hudson. However, how he arrives at this belief is a different take on world history and economics that bears closer scrutiny.
While it is clear that Dr. Hudson’s political sympathies lie with the socialist side of current events, he makes a compelling case for debt forgiveness as the immense amount of government debt in the world can never be paid back (especially since interest will be compounding faster than any country’s ability to ever repay the principal). He is also a proponent of having governments issue currency without borrowing the money (which obviously is a prerogative of any government). He rationalizes this will not be inflationary so long as the money is spent on infrastructure and not consumed (other than for basic survival needs). Better yet, there is no need to repay the government for the money it creates and spends into the economy!
If this sounds familiar, it is very much akin to modern monetary theory (the only thing missing is universal basic income). However, you may feel about MMT and UBI, as far as I am aware, Dr. Hudson does not advocate for either. However, his thoughts about government issuing currency without borrowing (as the Constitution permits), bear some discussion given the rising debt crisis and currency wars that are about to begin with BRICS nations. I would not be at all surprised if the BRICS followed by other third world countries default on all third world debt forcing a massive write down by the banks that would have the same effect as a debt jubilee while bankrupting the lenders (unless they try to “foreclose” on their loans by military force.
If we retaliate with trade sanctions and import tariffs, the cost of living in the USA will go up dramatically. That is not even taking into effect the consequences defacto dollar devaluation and refusal of foreigners to accept as payment in international trade.
The main issue is what will the lenders do in response to the BRICS? I fear tha The Four Horsemen will ride before we see the New Year.
As the old blessing went, “May you live in interesting times.” We certainly are blessed.
