Sometimes the Anglo Saxons of yore knew exactly how to deal with crooked money lenders…
The struggle between individual freedom and authoritarian state proceeded until the late 1600s when growing commercial wealth and political power in London began to become influential with its financial common sense. The specific event that formalized the victory over the ancient status quo was the “Glorious Revolution” of 1688, which maneuvered the pro-business and Protestant William of Orange into the British Crown and displaced James II as the last absolutist king. How refreshing this was is indicated by the oppressive politics of his and his predecessor, Charles II. Starting with the restoration of the monarchy with Charles in 1660, both kings were bribed by France to change the culture of England – consistently in an authoritarian direction. Scornful remarks by miffed establishment were similar to those directed to the pro-business movement today.
No matter how imaginative or despotic princely financing was, it can’t compare with the long- running compulsion to spend other people’s money by today’s bureaucrats and politicians, virtually unrestrained by the checks and balances of constitution or mainstream media.
But before expanding this point, consideration should be given to the other event that formally ended the old world, which was the beginning of modern finance with the incorporation of the Bank of England in 1694. As history shows, central banking is fine when disciplined by a convertible currency and, when not, it becomes a tool of state ambition to confiscate wealth though currency depreciation. That the dollar has lost 95% of its value exceeds most princely devaluations and, like those, has been no accident.
Indeed, recent Fed announcements to “print money” could be an attempt to go for the final 5%. While many outside central banking would consider this as infinite folly, it is uncertain as to how long this endeavour will maintain credulity in even academic circles. Regrettably, modern financial agencies such as the Treasury or Federal Reserve System have become as corruptible as their medieval counterparts.
Fortunately, history provides some antidotes to governmental abuse of the productive sector. Short of rebellion, the most effective of course has been to force government and its financial agencies to be accountable to the taxpayer. As for those who have wrecked the currency (also a government responsibility), Dante, in his Inferno, reserves a special place in hell for “false moneyers”.
The Anglo-Saxon Chronicles record something equivalent, albeit more temporal:
“1125 A.D. In this year before Christmas King Henry sent from Normandy to England and gave instructions that all moneyers … be deprived of their members … Bishop Roger of Salisbury commanded them all to assemble at Winchester by Christmas. When they came hither they were then taken one by one, and each deprived of the right hand and the testicles below. All this was done in twelve days between Christmas and Epiphany, and was entirely justified because they had ruined the whole country by the magnitude of their fraud which they paid for in full.”
-The Laud Chronicle (E)
Fortunately, history indicates that the public will eventually figure out that no matter how beguiling the claims about currency management and taxation are, the gambit has been mainly to confiscate private savings. They will then demand the return of sound money and accountable government.