And with the beginning of plague….
PROLOGUE
This is a travel in time, and it is real.
Just a while ago, over a year away, Witchlady bought and read this book:
1345. The bankruptcy of Florence
-a story of bankers, defaults and finance,
by LORENZO TANZINI, Salerno editore. In Italian, sorry, tell your bosses to translate it.
She said, WD, you have to read it, it is very good and interesting. But WD was reading physics at the time, he was lazy, the roof was maybe leaking, the sun was shining in a strange way, the birds were too loud and so instead he read it in times of Covid 19,it was much calmer, long after.
It is a small, very well written and crisp clear book. And it is a travel in Time. Not at the time of the Florence Republic default, but in times of today and tomorrow. The current economic cargo cult still believes that we are living in those times, it draws recipes from those times, especially the brainwashed Italian cargo cult ecomomists. It must be a subliminal imprinting of retards..
INTRODUCTION 1
Before we see the birth of the Debt Mount (ain)- Il Monte,dear reader, and especially all the economic cargo cult ruling and rulers, watch this short video from an Australian comedian at Billy Mitchell blog to get an Idea what is economics today. Then, think… how is possible that a Comedian gets it right and all the economic clowns/ professors/pushers get it wrong?
Yes, we are talking MMT. An yes, this part is missing that the MMT as a fact is helping the 1% oligarchy to get even more rich, Yes, MMT is not a view, it is a fact of the highest degree of probability, to use the Quantum mechanics way of proof. The Budget deficit= net spending is a free lunch for the oligarchy, because the deficit is debt in hands of the few and this is private profit.. But this may be not so, and MMT proves that instead of issuing bonds with or without interest, like the Overt Monetary Transaction, the direct financing of State Treasury by the Central Bank is also the same way how the economy can function even without debt or without enriching the oligarchy.
That Pavlina Thcherneva, the MMT head runner, is now in Foreign Affairs, a spin off of the council of foreign affairs,, or some front dressing window of the Central Committee of Capitalism proto free masonic lodge( see Gioele Magaldi) is logical, since MMT works fine for the few.But at least we know now, if you are not a member of failed economic cargo cult retards, that money comes from nothing and that anyone can turn that for his own agenda, the oligarchic or progressive one.
Introduction2
In 1345, Florence. The Jesuits were having a dispute, it was a crucial one for the human history. The catholic church was having a massive influence at that time on how all sectors of life behaved, money , lending and taxes included.
Was it just, right, honest,honorable, human, that the Florence Republic was collecting taxes from the people to pay with this taxes the interest on debt which was not made directly or not at all by the people of Florence? The majority of taxes collected were going to pay the interest or the principal of the Debt.
The dispute was resolved, as you know, people pay taxes to pay the Debt which is not a household debt but a State or the Republic of Florence debt, which was not provoked by the people, but by the rulers or even worse, by the private bankers, as it occurred in Florence, 1345.
WARNING
This here is Witchdoctor extrapolation and his are the comparisons and conclusions which are based on the book very worth reading.
The Birth of the debt Mountain.
The Florence Republic Invented IL Monte- The Mount. Mount is much bigger than a hill, like Mount Everest. To amount to. l` ammontare, the sum at the top of the sums, the summit, the Mount.. This words are not a joke , some retard might think, this is etymology.
Florence Republic, by sheer necessity invented the Debt Mountain. The State Debt , or The State Bad Bank.have you read Witchdoctor about it? The Mountain, the Debt Mount.
As usual, it started with a War.
There was a war before the Il Monte, the debt Mountain. And there was family of Bardi, Florence. They were bankers, but no, they were more like the Merchant bankers, since, at that time, no sane in mind would deposit his money to be kept safe with this very rich characters, the deposit had no interest of any magnitude and the books were cooked, as usual. The Bardi or other similar, like the Rotschilds in other parts, but Bardi started it first, made a syndication of a bunch of investors and they lent huge sums around, so they lent a fortune to a English King Eduard the Third,no, it is not a BlackAdder series, but we are close.King Eduard III had two “central banks”, one was called the exchequer, the other was his own, but it was hard to guess which was which. Why the Bardi lent a fortune to King Eduard III and paid for his war?
They did it because at this times the most parts of Europe were basically a neolithic barbarian place and at this times the Florence republic was something like 300 years advanced in Time compared to the rest of Europe, apart from some other Spaceships like Florence placed between the illiterate monkeys.
The Bardi were buying wool from the barbarian shepherds and they wanted a monopoly on all trade, they wanted it tax free out of England.
The Bardi Invented a Tax free haven!
For them, naturally, like today we have tax free tech, bank giants in the known Tax free haven states.
“Eduard the Third lost the war, and he forgot to return the money lent.
Edward defaulted on Florentine loans of 1,365,000 florins, resulting in the ruin of the lenders. Wikipedia.”
The Rotschilds learned the lesson
Instead of some shady half written oral by mouth deals as Bardi were doing with Eduard the Third and they got surprised after, The Rotschilds and Warburgs and similar made a real deal instead. Giving- lending money to the Kings and other blue blood lizards, they got the monopoly of tax collection on behalf of the Royalty and so by collecting taxes they secured their credit. They were sure to get the money back as they were collecting money on behalf of the rulers which went deeper and deeper in debt for centuries and made this banking guys rich on other people taxes.
The Florence Republic invented the Debt Mountain.The State debt, not some King debt but the debt of the Republic. To secure Florence from default. They invented the debt bond as free floating on the market,around 30-40 % of the nominal value , a highly speculative instrument with interest of 5% a year for the Monte one, 1o% a year for the Monte for two and 15% for the Monte for three. Interest paid by rising taxes.
The INVENTION of Bail In and Bail Out
Mind, we are talking something 700 years old! It is unbelievable how this shit sticks.
The Bail In of the Florence banksters is simple. What was left after their bankruptcy was sold, but this was a tiny fraction of the money due.
But the Bail Out was a fantastic invention. It was called the – Retaliation! Every kingdom or republic where there were Florence citizens which had some property or made business there, were dispossessed of their capital or property in amount of the money due by the bankruptcy of Bardi.The retaliation targeted anyone who was on a territory which claimed money from the Bardi. Folks, what a bail out! Run for your life, if not, they will take your skin off! The principle is the same as today. We all pay for someone who went in default, like when banks defaulted in 2008.
But that is not all, Florence Republic invented the sort of Investor-state dispute settlement (ISDS) and the International court of arbitration as the separate entities from the Florence Republic law ,with their own law.. They were desperate to fight back claims, to lure the claimants, to pay them slowly back, in order to not get dispossessed even of their own Republic.
Taxes, what taxes?
The Florence republic taxed goods. In fact, they invented VAT, the value added tax. The taxes on property were a taboo. It reminded them the times of serfdom under the local lords and the Pope.
But, when they invented the Monte for two and the Monte for three debt bonds they had to put a property tax to pay the interest on debt….
Florence Republic Invented the Troika and the ESM !
This one is a cherry on the grave! In order to be certain that Florence republic was to keep faith on servicing the debt, there had to be a third party involved.It was a kind of European stability mechanism! And guess who was the head of the “troika”?
The Apostolic Chamber! Folks, do you need more Religion and Theology than this when talking money lenders in the Temple? For more then three decades,after 1345, the Catholic Pope Apostolic Chamber was the one who, guess, was implementing, what? The Safeguard Clauses ! They were even called the same. If the Florence republic did not honor its obligations, the APOSTOLIC CHAMBER OF THE POPE CHURCH implemented the safeguard clauses, which meant more taxes for the citizens , etc, etc, to service the Florence Republic debt! You know the EU commission, the IMF, the Central bank,= the Troika.
We also proudly announce in the EU that we also have our own Apostolic Chamber!
See? EU is coming, 700 years after, as a God Gospel!
Florence republic invented the Consolidated Debt, or, it was the Perpetual Bonds
Dear reader, this is shouting: THE FLORENCE REPUBLIC, BY INVENTING THE “IL MONTE” AVOIDED BANKRUPTCY AND PROSPERED FOR A LONG TIME AFTER.
What was the Florence “Consolidated debt”? It was the majority of the Florence debt formed after the bail out of the Oligarchy, many characters which like dominoes defaulted after the Bardi family bankruptcy.The Principal- the whole amount of the debt was frozen and it was mostly never repaid. Only the Interest on this debt was paid. The Florence debt bonds were free floating on the market, fetching from 30-40% of their nominal value. They became a speculation finance instrument not only for the Florence Oligarchy, but also for the whole European speculative market and other European investors. See, it was the debt as an asset who made Florence prosper. But it was , as we can call it today, a Perpetual Bond freely floating,the principal was never paid, the speculation was on the interest and on changing market value of the bonds. It was a risky investment, but since the bonds price was going up and down depending on the circumstances (mostly who wins which war), it was a high gain instrument.
The Florence Republic debt Skyrocketed
You ask why? Well, Florence republic made wars,regardless of the Debt Mountain, fought many times against Siena,finally incorporated Siena in the Florence Republic and so gained free access to the sea, bought the town of Arezzo, fought against the Pope, Milan, Bologna, etc, Florence Republic grew bigger , paid for lot of wars, grew bigger and so grew also the “Consolidated debt”Nothing happened but since this massive investments in wars and conquest made also the taxes to grow, even the taboo, the property tax, was introduced to service the interest on debt,all this provoked the upheaval of workers and small artisans with chunks of the Oligarchy, the Ciompi. Taxes became too high to bear.. For a while the insurgents took over the Florence council and abolished the Monte for two and Monte for three debt, the 10 and 15% interest type of bonds on the consolidated debt.
What happened? Nothing, the old oligarchy took over, but the abolished bonds did not return back. Florence prospered.
Fact: The Perpetual bond- the consolidated debt- of the Florence Republic made Florence a beacon of light in the middle ages
The current 21st century cargo retards of economics do not know the basics or they fake or manipulate the facts. The Florence republic, in the times when only gold and silver coins constituted the money supply, there was not even the paper money invented, made things that this retards do not know about, dream about and dare to think about..They still manipulate people that their children will have to pay the debt and that they will, because of the current debt, live in poverty which was provoked by their parents! The evil fake cargo cult bollocks of retards and brain dead stupid. Sycophants of imbecility.
NOW, the last words…
It was 700 years ago, and even the plague came and decimated the Florence Republic population, Volterra lost 70% of its inhabitants. 50% was the norm. The Black death. In times of the above Debt >Mounting.
Does It Sounds familiar?
BUT, the Florentinians were a Spaceship.
Unbelievable, they made it. They were a huge industrial force, making textile for the whole of the EU, especially north barbarians in sheepskins.They had art, crafts, building skills,music, philosophy,banking, you name it. They were a spaceship in time landed on the strange planet.When they finally sacked and won over the Catholic rule, they made the Renaissance and De Medici and Macchiavelli came by…
CONCLUSION A
Yes it was 700 years ago. The European rulers lost the clock and they still think that this is today. It is not. At that time the money was a coin, silver or gold, no paper money. The Seigniorage was a procedure: when a person brought a piece of silver and gold to the city mint and for 5,5% of the tax he got back silver or gold Florins and he used them to pay taxes, for other purposes it was cheaper to pay direct in silver or gold.. Now, today in fiat money, the seigniorage is over 70%. AND THE MONEY IS OUT OF NOTHING. The current Cargo Cult got lost, 700 years back in time and even this is not true, they fake the ancient history..They are retards, retarded, they missed the time “in ritardo” for 700 years. Citrulli.Cafoni.Voltagabbana.Pezzenti.Analfabeti.
Go and buy a book. We will try to fix for you a Job Guarantee for life, planting trees.
CONCLUSION B
There are armies of economic professors and thinkthanks ( for life basic income candidates for planting trees for life) who say that MMT is not possible in a small country. Like Florence?
Retards.
So better listen to a comedian on the TV Australia channel, again, let the other real clowns plant trees, for life.
Even the famous hyperinflation counter argument against MMT in the disguise of Zimbabwe or Venezuela is solved there. In 30 seconds.
As for the MMT private profit bias for the 1%, it can also be easily arranged, for life…the same goes for interest on debt, it is already zero… it can be made debt free.
Matilda, hey, she take me money and run….
Witchdoctor