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Another fifty years and another monarch was about to lose not only his head but his throne. This time it was the turn of the King of France.
Jacques Necker started off as a clerk in a Swiss Bank of Issac Vernet at the age of 15. In 1750 he moved to the bank's Paris branch and by 1762 was made a partner.
After Turgot was dismissed from the Government in 1776 Necker replaced him as Director General of Finances. Following a policy of borrowing rather than raising tax to finance state expenditure, then exploding because of the American war, (once more it was war which inflated debt) Necker earned a good deal of popularity. However Necker's short-term high interest loans pushed the government closer to bankruptcy. Necker's reputation as a financial genius came from his 1781 report where by cooking the figures he made it appear that the French State account were in surplus. He was dismissed in 1781.
Despite the truly desparate condition of French State Finances, when Alexandre Colonne tried to bring in some of Turgot's old reforms there were howls of opposition and Necker entered into a very public confrontation in 1785.
In 1788 as bankruptcy loomed Necker was called back and he arranged a series of last minute loans but, realising that bankruptcy was imminent, Necker urged the convocation of the Estates General. It was upon the news of his removal that the population of Paris headed to the Bastille on July 14 1789.
Necker was appointed Minister of Finance by the new regime but went into retirement to his Swiss Estate soon afterwards.
Bankers indulged in a cheated system. They realised that they could issue more money than they had to back it up and not only that they could charge interest on it as well. This was the beginning of Fractional reserve banking or loaning out more money than there are assets on deposit.
In Paris, the Bank of France was created in 1800. Napoleon wanted France to break free from the power of the bankers and the debt. He said that:
"when the Government is dependent on bankers for money, the bankers not the leaders of the Government are in control."
And went on to say:
"The hand that gives is above the hand that takes. Money has no motherland. Financiers are without patriotism or decency. Their sole object is gain."
Today the central bank scam is really a hidden tax. The government sells bonds to the Central Bank to pay for things it does not have the political will to raise taxes to pay for. But the Bonds are purchased with money the Central Bank creates out of nothing. More money in circulation makes money worthless.
Capitalism is therefore built on shifting sands. It has to keep moving. Stagnant money spells disaster. Hence the constant call for "Economic Growth". For the bankers, for the financiers wars keep the ball rolling, the more destruction, the more mayhem the better because that requires more building, more borrowing, more interest ... And so to the United States:The United States before Federal Reserve
Naturally any dissenting voice had to be silenced: