MONETARY HISTORY CALENDAR December 8-14

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DECEMBER 9

1768 – BIRTH OF JOSEPH DESHA, U.S. REPRESENTATIVE, KY
“This accumulation of foreign capital (in the First Bank of the U.S.) was one of the engines for overturning civil liberty and I have no doubt that King George was a principal stock holder.”

1946 – BIRTH OF SONIA GANDHI, PRESIDENT, HEAD OF CONGRESS PARTY, INDIA
“Let me take you back to Indira Gandhi’s bank nationalization of 40 years ago. Every passing day bears out the wisdom of that decision. Public sector financial institutions have given our economy the stability and resilience we are now witnessing in the face of the economic slowdown.”

DECEMBER 10

1690 – PAPER MONEY ISSUED BY MASSACHUSETTS
Faced with a pressing need to fund military action against Canada during King William’s War, the Massachusetts colonial government authorized the issuing of £7,000 in public paper currency. This was the first public paper money issued in the history of Western civilization. The paper money possessed no intrinsic value. Its only value was that it was backed by the colony, accepted for tax payments. The notes could be redeemed for hard currency if such currency was available.

1762 – BIRTH OF DAMIEL DE LISLE BROCK, LEADING GUERNSEY ELECTED OFFICIAL
Since 1817 the island of Guernsey has used a money system based on government issued currency in response to public need. The amount of money issued is carefully controlled to prevent inflation. The island is prosperous. Taxation rates are low.

1896 – DEATH OF ALFRED NOBEL, INVENTOR AND BENEFACTOR OF NOBEL PRIZES
Each year, annual international awards are bestowed to honor great scientific and cultural advances. Nobel’s great-grandnephew, Peter Nobel, in 2001 asked the Bank of Sweden to differentiate its award to economists given “in Alfred Nobel’s memory” from the five other awards. He said, “The economics prize, awarded by the Swedish Rupsbank, runs counter the idealism in Alfred Nobel’s declaration that the prizes should be awarded to those who have conferred the greatest benefit on mankind – the vast majority of economic prizes have gone to people who reflect the dominating western view of the world. It’s doubtful whether this really is of benefit to all mankind.”

DECEMBER 13

1942 –    DEATH OF DAVIS RICH DEWEY, AMERICAN ECONOMIST AND STATISTICIAN
“The underlying idea in the greenback philosophy…is that the issue of currency is a function of government, a sovereign right which ought not to be delegated to corporations.”

1953 – BIRTH OF BEN BERNANKE, CHAIRMAN OF THE US FEDERAL RESERVE SYSTEM
The Federal Reserve is a largely private system, despite the word “Federal” in its title. The 12 Regional Federal Reserve banks are private (e.g. Fed banks appear in the business not government pages of phone books and its employees are not on the government payrolls).
Bernanke said on May 17, 2007:
“All that said, given the fundamental factors in place that should support the demand for housing, we believe the effect of the troubles in the subprime sector on the broader housing market will likely be limited, and we do not expect significant spillovers from the subprime market to the rest of the economy or to the financial system.  The vast majority of mortgages, including even subprime mortgages, continue to perform well.  Past gains in house prices have left most homeowners with significant amounts of home equity, and growth in jobs and incomes should help keep the financial obligations of most households manageable.”
Less than 1 year later, the housing market collapsed.
On October 31, 2007 he stated:
“It is not the responsibility of the Federal Reserve – nor would it be appropriate – to protect lenders and investors from the consequences of their financial decisions.”
Turned out the Fed provided $1.2 trillion in secret loans to many of the nation’s biggest banks from 2007-9, which allowed them to grow even bigger. http://www.bloomberg.com/news/2011-11-28/secret-fed-loans-undisclosed-to-congress-gave-banks-13-billion-in-income.html
This bail out of Wall Street by the Fed was not accompanied by any bail out of Main Street (small businesses) or the side streets (homeowners). The Fed served its constituents – banks.

2009 – DEATH OF PAUL A. SAMUELSON, ECONOMIST, AUTHOR OF ECONOMICS, AN INTRODUCTORY ANALSYS (BEST SELLING ECONOMICS TEXTBOOK OF ALL TIME)
“Few understand that all our money arises out of debt and IOU operations. The banking system as a whole can do what each small bank cannot do: it can expand its loans and investments many times the new reserves of cash created for it, even though each small bank is lending out only a fraction of its deposits.”

DECEMBER 14

1799 – DEATH OF GEORGE WASHINGTON, FIRST US PRESIDENT
The First Bank of the United States (the 2nd central bank, privately owned) was chartered for 20 years by Congress and signed into law by George Washington, the first President of the United States under the US Constitution. At the end of the 20 years, Congress determined the bank did not serve the public interest and, therefore, did not renew its charter.

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Why this calendar? Many people have questions about the root causes of our economic problems. Some questions involve money, banks and debt. How is money created? Why do banks control its quantity? How has the money system been used to liberate (not often) and oppress (most often) us? And how can the money system be “democratized” to rebuild our economy and society, create jobs and reduce debt? Our goal is to inform, intrigue and inspire through bite size weekly postings listing important events and quotes from prominent individuals (both past and present) on money, banking and how the money system can help people and the planet. We hope the sharing of bits of buried history will illuminate monetary and banking issues and empower you with others to create real economic and political justice. This calendar is a project of the Northeast Ohio American Friends Service Committee. Adele Looney, Phyllis Titus, Donna Schall, Leah Davis, Alice Francini, Deb Jose and Greg Coleridge helped in its development. Please forward this to others and encourage them to subscribe. To subscribe/unsubscribe or to comment on any entry, contact monetarycalendar@yahoo.com

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