A History of Central Banking and the Enslavement of Mankind

Chapter I: How Usury Destroyed the Roman Empire

Introduction

• Quote by Aristotle: "Money, being naturally barren... men called bankers we shall hate..."
• Overview of the monetary systems in the Roman era (753BC–565AD).
• Traditional founding of Rome by Romulus and Remus in 753BC.

The Early Monetary System

• Barter System: Initially, cow was used as a medium of exchange.
• Transition to copper/bronze:
  • Aes rude: irregular lumps weighed for transactions.
  • Aes signatum: stamped metal issued by the state.
• Introduction of fiat money:
  • Money based on law rather than intrinsic value.
  • Critique of non-fiat money controlled by private bankers.

Growth and Prosperity (753–267BC)

• Increase in Roman wealth and land from 2,135 to 10,350 square miles after the Second Latin War.
• Population growth from 750,000 to 1 million.
• Abolishment of debt-bondage (nexum) in 326BC.

The Silver Age (267–27BC)

• Destruction of traditional money: Patricians gained privilege to mint silver coins.
• Introduction of silver coins, notably the denarius.
• Consequences:
  • Decline in agricultural production and emergence of latifundia (large estates).
  • Fragmentation of society and social unrest leading to the Social War (90-89BC).

Jewish Influence

• Jews arrived in Rome (161BC) and became involved in money lending.
• Early expulsions and return of Jewish communities, contributing to economic turmoil.

Julius Caesar and Usury

• Caesar's reforms:
  1. Restoration of property at lower valuations.
  2. Remission of rents.
  3. Settlement of poor citizens on land.
  4. Free housing for impoverished families.
  5. Increased soldiers' pay.
  6. Regulation of grain distribution.
  7. Enfranchisement of provincial communities.
  8. Calendar reform.
• Monetary reforms:
  1. Reduced state debt by 25%.
  2. Mint control returned to government.
  3. Issued cheap metal coins.
  4. Interest cap at 1% monthly.
  5. Abolished usury as debt settlement.
  6. Aristocrats required to utilize capital.
• Consequences: Angered aristocrats led to Caesar's assassination (44BC).

The Gold Age (27BC–476AD)

• Adoption of the gold standard post-Caesar, leading to financial instability.
• Limited gold supply from Europe; reliance on eastern imports.
• Economic conditions:
  • Deflation due to scarce gold.
  • Strict regulations on counterfeiting by Emperor Constantine.

Church's Role in the Decline

• Tithing to the Church: 1/10 of income led to economic strain.
• Concentration of wealth in the Church and limited circulation of money.
• The empire became a parasitic organism, leading to inflation and poverty.

Consequences of Collapse

• Fall of the Western Empire in 476AD led to the Dark Ages.
• Economic decline: metallic money shrank from $1.8 billion to $200 million.
• Agriculture reduced to subsistence levels.
• Major factors in decline: concentration of wealth, lack of mining for production, and high numbers of non-citizen slaves.

Conclusion

• Economic lessons from Rome's fall:
  • A dishonest economic system leads to societal dissolution.
  • Essential for a society to have a circulating medium of exchange issued by the state, free of debt and interest.