This video and the next is a follow on from the previous videos dealing with the beginnings of the Bank of England and some historical background. If you haven’t seen those videos, I would recommend you doing so before watching this one.
There are several other points I wish to make in relation to the setting up of the Bank of England that I wish to draw your attention to.
Point number one - Underwriting the debt / Taxation
As security for the “fund facility” (or the phoney loan), Parliament underwrote the debt, or to put it more correctly, Parliament guaranteed payment of the interest owed with regard to the agreement known as the Charter which created the Bank of England.
How did they do this? By means of taxation. So, the people of Britain were forced to pay for this “debt” obligation in the form of taxes. I dare say the common man wasn’t too pleased about this state of affairs. It’s pure speculation on my part, but my guess is that they were probably only aware of their taxes going up and not necessarily the reasons behind it.
It is worth also bearing in mind that there was no universal suffrage until 1918 in Britain, so in effect, the common man never hand a say in this state of affairs and so, as far as the King, the Government and the Financiers were concerned, it mattered not a jot what the thoughts or the feelings of the common man were.
It’s clear why the Americans might, in the Century to follow, unite against the British rule in the American War of Independence, under the slogan “No taxation without representation.” They had, in my opinion, good cause to be aggrieved.
By the way, the parallels with what occurred in the US go beyond the aforementioned. The FED, the Central Bank of the US was bought into being in 1913 and the very next year, “The Emergency Internal Revenue Tax Act” came into being. (President Wilson wanted $100 million to fund a war chest.) Be advised, this is no coincidence.
Another thing to say on this matter of this phoney loan is … what is to stop the king using the full amount of this “fund facility”? Nothing. What does he care if he uses the “fund facility” to its fullest?
There are no consequences whatsoever to him spending every penny’s worth. He doesn’t pay for it, so he has no reason not to. There is no disincentive whatsoever.
In common parlance. He can happy “max out” his “fund facility” without consequence and without a care. What person wouldn’t want to be in that privileged position?
Point number two - National Debt
The founding of the Bank of England marks the beginning of Britain’s National Debt.
What is more the National Debt increased markedly in relatively a short period of time. In 1697 the National Debt was £10 m and in 1714 it was £36 m.
Today, the National Debt in the UK is £2.2 Billion. This is a gross figure – and I mean this in both senses of the term.
The National Debt in the US has just passed the $30 Trillion mark.
