A History of Central Banking and the Enslavement of Mankind
Chapter I: How Usury Destroyed the Roman Empire
Key Quote
"Money, being naturally barren, to make it breed money is preposterous and a perversion from the end of its institution... Men called bankers we shall hate, for they enrich themselves while doing nothing." – Aristotle, Politics
Overview of Roman Monetary Systems
Periods of Roman monetary systems (753BC–565AD) divided into three distinct phases.
Different metals used for exchange:
Copper/Bronze (753–267BC)
Silver (267–27BC)
Gold (27BC–476AD)
Early Monetary Practices
Foundation of Rome (753BC): Founded by Romulus and Remus, later established as a Republic in 509BC after expelling Etruscan kings.
Initial use of barter system with cattle; transition to irregular lumps of copper and bronze (aes rude).
The Copper Age (753–267BC)
Increased prosperity through trade.
Introduction of aes signatum (stamped metal) and later replaced by aes grave (heavy metal).
Early fiat money issued by the state, based on law rather than intrinsic value.
Abolishment of debt-bondage (nexum) due to plebeian agitation by lex Poetelia in 326BC.
The Silver Age (267–27BC)
Introduction of silver coinage; patricians misuse minting privileges leading to economic instability.
Expansion of the army and decline of agricultural production.
Increase in poverty leading to social unrest and revolts, including the one led by Spartacus (73-71BC).
The Jewish Role in the Collapse
First Jews arrived in Rome (161BC) and became involved in money lending.
Their presence contributed to the decline of Roman economic stability.
Julius Caesar's Reforms
Born July 12, 100BC; became leader after defeating Pompey in 48BC.
Recognized dangers of usury and implemented reforms:
Restoration of property valuations.
Remissions of rents and provision of housing for the poor.
Soldiers’ pay increase and regulation of corn dole.
Political enfranchisement of provincial communities.
Monetary reforms to limit interest rates and abolish debt slavery.
Assassinated on March 15, 44BC due to opposition from aristocrats.
The Gold Age (27BC–476AD)
Adoption of the gold standard post-Caesar's death; introduction of gold aureus.
Economic implications: increased militarization and loss of agricultural independence.
Deflationary periods due to scarcity of gold; heavy taxation and loss of middle classes.
Role of the Church in the Decline
Taxation by Emperor Constantine led to accumulation of wealth in the Church.
Concentration of wealth destabilized the economy, leading to inflation and deflation cycles.
Consequences of the Collapse
Fall of the Western Roman Empire in 476AD ushered in the Dark Ages.
Economic conditions: deflation, stagnated commerce, loss of arts and sciences.
Major factors in decline include:
Wealth concentration
Lack of industrial production
Over-reliance on slave labor
Importance of a sound economic system for societal survival:
Means of exchange must be debt and interest-free, issued by the state.