By Matthew Ehret
As I laid out in my last article, false solutions to a crisis of global proportions are being promoted in the form of a “Great Global Reset” which aims at creating a new economic order under the fog of COVID. This emerging “new order”, as it is being promoted by Mark Carney, George Soros, Bill Gates and other minions of the City of London is shaped by a devout commitment to depopulation, world government and master-slave systems of social control.
By attempting to tie the new system of “value” to economic practices which are designed to crush humanity’s ability to sustain itself in the form of “reducing carbon footprints”, “sustainable green energy”, cap and trade, carbon taxes and green infrastructure bonds, humanity is being set up to accept a system of governance onto our children and grandchildren which will subject them to a dystopic world of fascism the likes of which even Hitler could not have dreamed.
The misanthropic philosophy underlying the Great Reset is not new but go back thousands of years and although this fact of world history has been intentionally obscured, the revolution that established a new nation in 1776 represented a total rejection of this system.
The Dual Nature of the USA as a Force in World History
While many people find it easy to dismiss the USA as an intrinsically evil empire which always strove to replace the British Empire as the hegemon of the earth, there is a much richer historic fight at play which America’s emergence as a new nation in 1776 exemplified and which I recently outlined in the lecture below.
As I will demonstrate in this essay, the revolution of 1776 was never about tea parties, taxes or the “right to defend property” as may revisionist historians have lyingly written over many generations.
It was rather an international affair that gave rise to a system of political economy which placed value NOT upon the worshiping money but rather upon the inherent powers of creative reason located in the minds of all citizens. This potentially infinite resource (or “the resource that creates all other resources”) is only expressed IF a nation’s citizens are given the opportunities, means, hope and inspiration to express them. Abraham Lincoln stated this principle beautifully when he said:
“All creation is a mine, and every man, a miner. The whole earth, and all within it, upon it, and round about it, including himself, in his physical, moral, and intellectual nature, and his susceptibilities, are the infinitely various “leads” from which, man, from the first, was to dig out his destiny… Man is not the only animal who labors; but he is the only one who improves his workmanship. This improvement, he effects by Discoveries, and Inventions.”
The means developed by leading figures of the revolution, to be used by government with the aim of actualizing those powers of mind included practices of national banking, public credit, selective protectionism and increasing the productive powers of labor via investments into internal improvements, infrastructure and scientific progress.
This is the system which the ruling oligarchy is currently frightened may be brought back online under the conditions of a breakdown crisis should Trump maintain his position as President, and due to the fact that it has been so entirely obscured from history books, some words are worth devoting to its existence now.
The Origins of the American System
During the crisis of 1783-1791, The newly established American republic was an agrarian economy in financial ruins with no means to pay off its debts or even the soldiers who fought for years in the revolutionary war. It was only a matter of time before the fragile new nation would come undone and be reabsorbed back into the fold of the British Empire.
The solution to this unsolvable crisis was unveiled by Washington’s former Aide de Camp and now Treasury Secretary Alexander Hamilton (1755-1804) who studied the works of the great dirigiste economists like France’s Finance Minister Jean-Baptiste Colbert, and introduced a four-fold solution:
- Consolidate all unpayable state debts into a singular federal debt secured by the issuance of new bonds. This was done via his 1790 Report on Public Credit.
- Tie these new bonds to internal improvements like roads, canals, academies and industrial growth which would create a qualitatively new form of debt that would permit the nation to produce its way out of poverty which would lead to “the augmentation of the active or productive capital of a country”. In this sense Hamilton distinguished bad debt from good debt using the important guiding principle that the “creation of debt should always be accompanied with the means of extinguishment.” [to illustrate this more clearly: think of a farmer taking on a debt in order to feed a gambling addiction vs investing his loan into new farm supplies and a tractor.] The thrust of this conception was found in his Report on the Subject of Manufactures of 1791.
- Guide that new national power over finance by a system of national banks subservient to the Constitution and the General Welfare (instead of a system of central banks under the British model that ensured nation states would forever be subservient to the laws of usurious finance). This was illustrated in Hamilton’s 1790 Report on a National Bank and his 1791 On the Constitutionality of a National Bank.
- Use protective measures where necessary to block foreign dumping of cheap goods into the nation from abroad which essentially makes it more profitable to purchase industrial goods and farm products locally rather than from abroad. Hamilton also promoted federal incentives/bounties to encourage private enterprises to build things that would be in alignment with the national interests.
The Matter of Mind over Money
Hamilton’s idea for the national bank was premised on the unification of private profit with the wellbeing of the whole nation in order to overcome the dichotomy of state vs individual rights which has plagued so much of philosophy and human history.
In opposition to the Jeffersonian crowd promoting British Free Trade which presumed that manufacturing and a strong federal government were evils to be avoided, Hamilton wrote that there is “a general principle inherent in the very definition of Government and essential to every step of the progress to be made by that of the United States; namely—that every power vested in a Government is in its nature sovereign, and includes by force of the term, a right to employ all the means requisite, and fairly applicable to the attainment of the ends of such power; and which are not precluded by restrictions & exceptions specified in the constitution; or not immoral, or not contrary to the essential ends of political society.”
Hamilton added that this power must exist “to give encouragement to the enterprise of our own merchants, and to advance our navigation and manufactures.”
Throughout all of his works, Hamilton is clear that value is not located in land, gold, money, or any arbitrary value favored by followers of the British School like Adam Smith, Bentham, or Mill. In defending the growth of manufactures and internal improvements, Hamilton states that “to cherish and stimulate the activity of the human mind, by multiplying the objects of enterprise, is not among the least considerable of the expedients, by which the wealth of a nation may be promoted.”
The Overthrow of the American System
Although City of London-affiliated traitors in America like Aaron Burr established the speculative Bank of Manhattan which started Wall Street, killed Alexander Hamilton in 1804, and derailed many of Hamilton’s grand designs, the system was never completely destroyed despite the decades of attempts to do so.
In 1824, the great German economist Frederick List came to America with the last surviving leader of 1776 Marquis Lafayette as part of an international effort to revive the sabotaged plans to create a world of sovereign republics modelled on the American experience of 1776.
While this effort failed with Lafayette’s supplication to the scheme of re-instating a French King in 1830 rather than declare himself the President (as I outlined in my recent paper on the Congress of Vienna), List studied Hamilton’s system and was the first to codify it as the American System of Political Economy (1827). This was the system which List transported to Germany by driving rail development, industrial growth, protectionism under the German Zollverein which finally blossomed under the rule of Chancellor Otto von Bismarck. List’s system was also studied, translated and applied in Russia by many “American System economists” with the greatest being the Transport Minister and Prime Minister Sergei Witte who oversaw the trans Siberian railway’s completion and envisioned a line eventually connecting the Americas to Russia via the Bering Straits.
In America, the clash between American vs British Systems defined all major conflicts from 1836 when a racist tool named Andrew Jackson killed the 2nd National Bank (along with thousands of Cherokee) and brought the nation under the heal of British Free Trade, speculation, and cotton plantation economics. Following the IMF’s protocols that would be imposed onto victim nations 150 years later, Jackson cancelled all internal improvements in order to “pay the debt” and deregulated the banking system which resulted in the growth of over 7000 separate currencies issued by an array of state banks rendering the economy chaotic, bankrupt and prone to mass counterfeiting.
The defenders of the American System during this period (led by Whigs such as John Quincy Adams, Matthew Carey and Henry Clay) played a rear-guard action hoping for an opening to occur at some point. When that opening finally arrived with the victory of Whig President William Harrison in 1840 a glimmer of hope was felt. Harrison swept to power with a mandate to “revive the national bank” and enact Clay’s American System of internal improvements but sadly the new leader found himself dead in a matter of only 3 months with legislation for the 3rd national bank sitting unsigned on his desk. Over his dead body (and that of another Whig president only 10 years later), the slave power grew in influence enormously.
It wasn’t until 1861 that a new president arose who successfully avoided assassination attempts long enough to revive Hamilton’s American System during a period of existential crisis of economic bankruptcy and foreign sponsored civil war. Unlike the British system of free trade which forced its adherents to worship money, the American system of Franklin and Hamilton always placed value on the creative powers of reason of the citizens which distinguished our species as unique among all creation.
What did Lincoln Actually Face?
Beyond the dangers of secession, Lincoln had to contend with the Wall Street financiers, international bankers and Anglo Canadian operatives who worked tirelessly to sabotage the president’s ability to acquire the funds necessary to execute the war.
To make matters worse, the state of economic affairs was impossibly unmanageable with thousands of recognized bank notes in the USA and over 1496 banks each issuing multiple notes. Under this highly de-regulated system made possible by the 1836 killing of the national bank and the passage of the 1846 Independent Treasury Act which prevented the government from influencing economic affairs, every private bank could issue currencies with no federal authority. With such a breakdown of finances, no national projects were possible, international investments were scarce and free market money worshipping ran rampant. Manufacturing collapsed, speculation took over and the slavocracy grew in influence between the 1837’s bank panic and 1860.
The City of London was obviously not interested in allowing the USA to get out from under water, and with the gold-backed pound sterling, ensured the manipulation of gold prices and orchestrated the buyout of US gold reserves. When Lincoln sought loans to execute the war, whether from Wall Street or International banking houses, the loans were granted only at excessive interest rates of 20-25%.
Russian Ambassador to London de Brunow reported to Moscow of England’s desire to break the Union writing in January 1861:
“The English government, at the bottom of its heart, desired the separation of North America into two republics, which will watch each other jealously and counterbalance one the other. Then England, on terms of peace and commerce with both, would have nothing to fear from either; for she would dominate them, restraining them by their rival ambitions.”
Historian Robert Ingraham described this impossible situation in 2002:
“In January 1862, Gallatin [head of the NY Associated Banks] presented the bankers’ ultimatum to the Treasury: 1) pay for the war effort through a massive increase of direct taxation of the population; 2) deposit all U.S. government gold in the private New York banks and make those banks the sole (monopoly) agent for the marketing of U.S. government debt (primarily bonds sold in London); 3) suspend the “sub-treasury laws” (government regulation of banks); and 4) withdraw all government-issued paper currency so that only gold and private bank notes would circulate as currency.”
Although 150 years of revisionist historians have obscured the real Lincoln and the true nature of the Civil War, the martyred president was always an opponent to slavery and always situated himself in the traditions of the American System of Hamilton describing in 1832 a policy which he later enacted 30 years later: “My politics are short and sweet, like the old woman’s dance. I am in favor of a national bank. I am in favor of the internal improvement system, and a high protective tariff. These are my sentiments and political principles.”
From this period in the Congress where he became a leading ally of John Quincy Adams, and played a leading role in opposition to the unjust US-Mexican War, Lincoln committed himself consistently to ending not only systems of slavery but also all hereditary power structures internationally which he understood were inextricably connected saying during an 1858 debate with the slavocracy’s Judge Douglas:
“That is the issue that will continue in this country when these poor tongues of Judge Douglas and myself shall be silent. It is the eternal struggle between these two principles – right and wrong – throughout the world. They are the two principles that have stood face to face from the beginning of time, and will ever continue to struggle. The one is the common right of humanity and the other the divine right of kings.“
The means needed to break both systems of empire and slavery were located in the American System of political economy.
Lincoln Revives the American System
Putting this economic policy into action during the height of the war occurred in a 3-step operation which began with Banking and Currency Acts in 1862 and 1863. These acts established placed the thousands of local state banks under a federal charter with federal supervision for the first time in decades. By imposing a 10% tax on state bank notes, private independent state banks shrank from 1466 in 1861 to only 297 by 1865 and over 1630 national banks took their place.
The Bank Act of 1863 established reserve requirements for the first time, and also capped the interest rates in order to destroy usury within the nation itself. In order to eliminate international interference and manipulation from Wall Street financiers, the Bank Act also forced 75% of all bank directors to reside in the state in which the bank was located and all directors had to be American citizens.
The most important step in this fight was the sovereign control of credit issuance which according to Article 1 section 8 of the US constitution can only be affected through the US treasury (an important lesson for anyone serious about ending the privately run Federal Reserve controls over national finance today). Following this constitutional principle, Lincoln issued a new form of currency called Greenbacks which could only be issued against US government bonds. These began being issued with the 1862 Legal Tender Act.
Nationally-chartered banks were now obliged to deposit into the federal treasury totalling at least one third of their capital in exchange for government notes issued by the Mint and Treasury (in order to qualify for federal charters needed to avoid the tax on state bank activities, banks found themselves lending to the government which gave Lincoln an ability to avoid the usurious loans from London and Wall Street.)
New bonds were issued under this scheme called 5:20 bonds (due to their 5-20 year maturation), which citizens purchased as investments into their nations’ survival. These bonds which united “personal self interest” with the general welfare of the nation provided loans to manufacturing as well as served as the basis for the issuance of more Greenbacks. Organized by Lincoln’s ally Jay Cooke (a patriotic Philadelphia banker), the 5-20 bonds were sold in small denominations to average citizens who then had a vested interest in directly participating in saving their nation. Between 1862-1865 these bonds accounted for $1.3 billion. Lincoln described the success of this new approach to finance saying:
“The patriotism of the people has placed at the disposal of the government the large means demanded by the public exigencies. Much of the national loan has been taken by citizens of the industrial classes, whose confidence in their country’s faith and zeal for their country’s deliverance from present peril has induced them to contribute to the support of the government the whole of their limited acquisitions. This fact imposes peculiar obligations to economy in disbursement and energy in action.”
These measures were accompanied by a strong protective tariff to grow American industries as well.
By the beginning of 1865, $450 million in Greenbacks were issued making up over half of all currency in circulation. Greenbacks and 5-20 bonds financed not only the arming, feeding and payments to soldiers, but also the often-overlooked large scale industrial and rail programs begun during the peak of the war itself… namely the trans continental railway (started in 1863 and completed in 1869 linking for the first time in history a continent from east to west). This was financed through grants and subsidies made possible by the greenbacks which increased government spending power by 300%!
In his 1865 essay How to Outdo England Without Fighting Her, Lincoln’s economic advisor Henry C Carey stated: “The ‘greenback’ has fallen on the country as the dew falls, bringing with it good to all and doing injury to none.”
Unfortunately, the subversion of Lincoln’s American System began quickly with Lincoln’s murder. Rather than impose full reconstruction of the defeated south after the war as Lincoln planned, a new war was waged against Greenbacks led by the City of London and its American agents in Wall Street which ultimately subverted American productive credit with the 1875 Specie Resumption Act. This act killed the greenbacks and tied the republic’s currency to gold submitting the nation to London’s speculative controls while contracting the means of credit from large-scale long-term infrastructure projects.
The Case of Trump and the Potential Return of the American System
Like Lincoln, President Trump faces many threats today both within his own neocon-infested administration as well as within the British run deep state that has taken over the Democratic party since the 1963 murder of JFK.
But in spite of these problems, he is undeniably the first president to publicly invoke the American System of Lincoln by name since the assassinated President McKinley in 1901. His recent Republican party convention speech of August 27 repeatedly invoked Lincoln’s name while calling for a newly reconstituted party without the Bush dynasty poison (the Bush family completely boycotted the convention). During the speech Trump stated:
“The Republican Party, the party of Abraham Lincoln, goes forward united, determined and ready to welcome millions of Democrats, independents and anyone who believes in the greatness of America and the righteous heart of the American people.”
In an earlier 2017 Kentucky speech Trump invoked the “American model” and said “this is the system our Founders wanted. Our greatest American leaders — including George Washington, Hamilton, Jackson, Lincoln — they all agreed that for America to be a strong nation it must also be a great manufacturing nation.”
A Parting Thought From Lincoln
Contemplating the international scope of the Civil War which has more relevance for today’s imperiled age than anyone may have expected 160 years ago, Lincoln stated in 1862:
“Fellow citizens, we cannot escape history. We of this Congress, and this administration, will be remembered in spite of ourselves. No personal significance, or insignificance, can spare one or another of us. The fiery trial through which we pass, will light us down, in honor or dishonor, to the last generation. We say we are for the Union. The world will not forget that we say this. We know how to save the Union. The world knows we know how to save it. We even here–hold the power and bear the responsibility. In giving freedom to the slave, we assure freedom to the free–honorable alike in what we give and what we preserve. We shall nobly save, or meanly lose, the last, best hope of earth. Other means may succeed–this could not fail. The way is plain, peaceful, generous and just–a way which, if followed, the world will forever applaud and God must forever bless… If we do this we shall not only have saved the Union, but we shall have so saved it, as to make, and to keep it forever worthy of the saving. We shall have so saved it, that the succeeding millions of free happy people the world over shall rise up and call us blessed, to the latest generations.”
Matthew Ehret is the Editor-in-Chief of the Canadian Patriot Review , a BRI Expert on Tactical talk, and has authored 3 volumes of ‘Untold History of Canada’ book series. In 2019 he co-founded the Montreal-based Rising Tide Foundation. He can be reached at firstname.lastname@example.org
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