China Pushes Yuan Even Lower

The U.S. Senate passed the following resolution on December 23, 1793:

Any person holding any office or any stock in any institution in the nature of a bank for issuing or discounting bills or notes payable to bearer or order, cannot be a member of the House whilst he holds such office or stock. [1]

The resolution was signed by President George Washington. [1]

The charter of the First Bank of the United States was not renewed in 1811. The War of 1812 lasted until 1815. In 1816, a charter for the Second Bank of the United States was issued. The charter was due to expire in 1836. What is called “The Bank War” pitted Henry Clay against President Andrew Jackson. Jackson defeated Clay in the presidential election of 1832. Taking his political victory as a mandate from the people to destroy the Second Bank of the United States, Jackson withdrew federal deposits, thereby setting the stage for the Bank’s eventual death in 1836. [2]

In 1836, around the time of “The Bank War,” Abraham Lincoln was a legislator in the State of Illinois. There was a struggle between factions about moving the State capital from Vandalia to Springfield. A resolution was introduced to investigate the management of the State Bank of Illinois in Springfield. Young Lincoln, then about 27 years old, had this to say on the general matter: “These capitalists generally act harmoniously, and in concert, to fleece the people, and now, that they have got into a quarrel with themselves, we are called upon to appropriate the people’s money to settle the quarrel.” [3]

The British were distracted from their constant meddling in the United States by the Crimean War. When that war ended in 1856, the fancy lads again turned their attention to the U.S. Cotton interests between the American South and cotton manufacturing in England united the two. The South swarmed with British secret agents. “Soon a great conspiracy arose among southern politicians, which erupted with the secession of South Carolina from the Union on December 20, 1860, followed by six more states in about one month… Members of the [James Buchanan] Cabinet actively engaged in crippling the Union, injuring the public credit and working to bankrupt the nation, with the apparently passive assent of President Buchanan.” [4]

Congratulations, Abe. You are now the President. But what was he to do? How could Lincoln pay for the costs of an army to preserve the Union? The Treasury was empty. Lincoln asked Wall Street for funds, and got outrageous terms from them: The banks offered loans at 20 percent discount, meaning for every 80 dollars of their notes they would receive 100 dollars in government bonds. Those bonds were to pay a usurious rate of interest, and that interest had to be paid in gold. [1]

“These capitalists generally act harmoniously, and in concert, to fleece the people,” must have recalled Father Abraham when he turned down Wall Street’s proposal. Instead Old Abe decided upon issuing money owned by the people of the United States and overseen by the U.S. Congress: Enactments of July 17, 1861 and February 12, 1862 authorized “the issue of $60,000,000 treasury notes, not bearing interest payable for all debts, public and private” which were the first issue of Greenbacks. [1]

Wall Street reacted with alarm to these Greenbacks. Within days of the passage of the legal tender act, an emergency bankers’ meeting was held in Washington, DC. The big bankers feared their money monopoly would be transferred from them and to the control of the American people. A Pseudo-Greenback mimicked the real Greenback in appearance. An “exception clause” consummated by act of Congress on February 25, 1862 handcuffed the Greenback by not allowing it to pay duties on imports and interest on the public debt. Interest on the public debt had to be paid in gold, ordered the “exception clause.” And the big bankers had hoarded most of the gold. [1] (Further background: Civil War Between Currencies, Ersjdamoo’s Blog, August 6, 2015.)

Well, things developed from there: Lincoln was killed in 1865 and by 1866 the American Congress passed the Contraction Act, allowing the treasury to call in and retire some of Lincoln’s Greenbacks. The private bankers’ money monopoly had won this civil war within the Civil War. Later, in 1913, the ghastly creature “Federal Reserve” poked its bulbous head from between the gaping thighs of Mama National Bank. [5]

Today a new Pharaoh, Janet Yellen, is the “poster boy” (or in this case “poster girl”) for “Federal Reserve.” Pharaoh Yellen had a dream: she saw seven fat cows emerging from the river, followed by seven lean cows which ate up the fat cows. A new era of higher rates is upon us, reported Associated Press. The “Federal Reserve” has kept its short-term interest rate “near zero for nearly seven years.” Depending on your point of view, an anticipated rate hike in September is either the fat cows or the lean cows. (Background: The Dream of Pharaoh (Janet) Yellen, Ersjdamoo’s Blog, August 11, 2015.)

However now, from a “Black Swan event”, China has suddenly devalued its currency. The “best laid schemes o’ Mice an’ Men gang aft agley” (the best laid plans of mice and men often go awry). The black swan theory or theory of black swan events is a metaphor that describes an event that comes as a surprise. [6] It was certainly a surprise when China devalued its currency yesterday. And Markets around the world fell for a second day on Wednesday, reports Reuters early this morning, after China pushed the yuan lower again overnight. [7] What will this mean for the odds of a September rate hike by the “Fed”? Various currencies are all relative to each other. If the yuan goes down, the dollar goes up. A September rate hike would make the dollar go up even more, perhaps more than would be in the plan of Pharaoh Yellen and the “Federal Reserve.”

——- Sources ——-
[1] Seven Financial Conspiracies Which Have Enslaved the American People, by Mrs. Sarah E.V. Emery. Originally published circa 1892. Westport, CT: Hyperion Press.
[2] Book description of Andrew Jackson and the Bank War, by Robert V. Remini. Description found at Amazon.com.
[3] Abraham Lincoln: The Prairie Years and the War Years (one volume edition), by Carl Sandburg. Houghton Mifflin Harcourt Publishing.
[4] The Empire of the City, by E.C. Knuth. 1983 edition published by Noontide Press, Torrance, California.
[5] Civil War Between Currencies, Ersjdamoo’s Blog, August 6, 2015. https://ersjdamoo.wordpress.com/2015/08/06/civil-war-between-currencies/
[6] https://en.wikipedia.org/wiki/Black_swan_theory
[7] “Stocks, yields tumble after China pushes yuan lower again”, by Jamie McGeever. Reuters, August 12, 2015.

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About ersjdamoo

Editor of Conspiracy Nation, later renamed Melchizedek Communique. Close associate of the late Sherman H. Skolnick. Jack of all trades, master of none. Sagittarius, with Sagittarius rising. I'm not a bum, I'm a philosopher.
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