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Chapter Eleven
THE ROTHSCHILD
FORMULA
The rise of the House of Rothschild in Europe; the
tradition among financiers of profiting from both
sides of armed conflict; the formula by which war
is
converted into debt and debt converted back
into war.
So far we have adhered closely to the subject of money and the
history of its manipulation by political and monetary scientists.
Now we are going to take a short detour along a parallel path and
view some of the same historical scenery from a different perspective.
As we progress, it may seem that we have lost our way, and
you may wonder what connection any of this can possibly have
with the Federal Reserve System. Please be assured, however, it has
everything to do with it,
and, when we finally return to that topic,
the connection will have become painfully clear.
THE PROFITS OF WAR
The focus of this chapter is
on the profits of war and, more
specifically, the tendency of those who reap those profits to
manipulate governments into military conflicts, not for national or
patriotic reasons, but for private gain. The mechanism by which
this was accomplished in the past was more complex than simply
lending money to warring governments and then collecting interest,
although that was part of it The real payoff has always been in
the form of political favoritism in the market place. Writing in the
year 1937, French historian Richard Lewinsohn explains:
Although often called bankers, those who financed wars in the
pre-capitalist period ... were not bankers in the modern sense of the
word. Unlike modern bankers who operate with money deposited
with them by their clients [or, in more recent times, created out of
nothing by a central bank—E.G.], they generally worked with the
fortune which they themselves had amassed or inherited, and which