A History of Central Banking and the Enslavement of Mankind

Stephen Goodson

A History of Central Banking

and the Enslavement of Mankind

Reviewed by Fredrick Töben toben@toben.biz


Stephen Goodson dedicates his 207-page book to Knut Hamsun the Norwegian who in 1920 won the Nobel Prize in literature for his 1917 published book Growth of the Soil, a novel whose theme focuses on an idealized view where an individual is at one with nature and not against nature. For Hamsun even experiencing nature by proxy still means an individual’s alienation from Nature. Interestingly, the current dogmatic Climate Change debate has perverted this interrelatedness to the point where it is asserted that human activity, for example taking a simple step, has an effect on the natural forces that make up our climate, which is a nonsense. If we have developed the capacity to control our climate, then why are there not little machines at every airport that enable planes to safely take-off and land when severe wind gusts sweep across runways?

An Ezra Pound quotation will upset some readers, i.e. if they let themselves be upset, because he mentions the two problems that have beset American Occidental-western history these past 2,000 years: sheenies and usury. I needed to look up what sheenies means.

A striking three-page Preface by Prince Mangosuthu Buthelezi, President of the South African Inkatha Freedom Party, sets the pervading tone of Stephen Goodson’s work. Prince Buthelezi, who distances himself from the book’ s expressed views, predicts that this book, written by someone who actually knows something about the money problem, will upset readers who do not know anything about the evils of usury and the process of money creation. He concludes his Preface by citing the now famous 27 April 1961 President Kennedy speech wherein is quoted the Athenian lawmaker Solon who decreed it is a crime for any citizen to shrink from controversy. Tell that to those who are adherents of the prevailing mindset that advocates politically correct public discourse and who with a vengeance hate any dissenting viewpoint.

I may add that the book’s contents will also unsettle individuals who falsely believe that since 1994 South Africans have actually gained their freedom from soul-destroying apartheid. Goodson highlights the fact that since 1994 to the present the insidious nature of the private banking industry which remained hidden until then within the racist white South African political mould could not be hidden any longer under the veil of freedom and democracy . This is because even the prevailing rush to consumerism has failed to bring about the promised economic salvation that was to solve pressing social issues such as high rates of unemployment and declining services.

In our current western liberal democracies it has become a criminal matter to discriminate against any human value, except against the commodity called money. Try it out when next you fly economy class to your favourite destination and threaten to sue the airline for economic discrimination against you by placing you in economy class rather than in business class as you show the flight attendant your economy class boarding pass! The author‘s own brief Introduction will disturb accountants.

Remember the maxim: An accountant can place a price on everything but a value on nothing. Many certainly don’t know the value of an historical narrative that imbues individuals with a normative civilizing impulse. If there is not a clear value-laden overarching narrative that gives meaning to their existence, a people cannot handle the essential inter-generational challenges it faces. The consumerism distraction hides this deeply flawed thinking process so effectively.

Goodson insists that the creation of money needs to rest with the people/nation state. It must be taken away from the private bankers who can only retain control of a flawed economic/monetary system by creating continuous bust-boom cycles that inevitably result in military conflicts all for the sake of wresting power unto themselves. In order to liberate ourselves from the clutches of the international bankers it is imperative we dismantle their fractional reserve system of banking. These brief introductory matters firmly contextualize the contents of Stephen Goodson’s work. The problems raised and their proposed solutions are set out in eight chapters of varying length, and over 270 detailed footnotes augment the arguments therein with 100 titles listed in the selected bibliography. In the companion volume, Inside the South African Reserve Bank Its Origins and Secrets Exposed, Appendix One details how money is created out of nothing and what makes up the money supply coins, banknotes and credit; Appendix Two looks at the Amendment to the Constitution of the Republic of South Africa needed so that finance and monetary reform can be enacted in order to enable debt-free and interestfree creation of money.

Chapter I spells out the destructive force inherent in usury, which Goodson claims destroyed the Roman Empire. I would augment that argument by pointing out that a parallel decline in moral standards contributes to such social and economic breakdown. Our current global troubles resemble this situation with the USA behaving like the Roman Empire. Goodson would insist and stress that the economic forces unleashed through usury and impacting on societal structures causes tragic human frailty to emerge, and thereby is directly responsible for societal breakdown. My argument would focus on the outgrowth of consumerism’s fatal attraction if individuals resisted this process and retained a firm personal value system, then societal structures would remain healthy and sustainable, perhaps, i.e. the trite truism: if you don’t spend too much money, you don’t need too much money.

There is nothing new in this still timely debate because the thrust of the argument goes back to Aristotle, et al, who realized that the role of money is only to facilitate an easier exchange of goods, and that money of itself had better not become the object of any other value, i.e. it must not become a commodity. Tell that to those who thrive on the opium gambling dens called stock exchanges.

Of interest is Goodson’s focus on the role played by Jews who entered the Roman Empire as craftsmen, peddlers, shopkeepers and money lenders but who then still retained their separation from the body politics. Through the flourishing of usury many outsiders then began to inflict suffering on their gullible hosts.

Goodson lists Consul Julius Caesar’s social and monetary reforms that aimed to counter the upheaval caused by usury, which read like the modern manifestations of problems on a global scale, i.e. as found in India, China, Russia, Europe, USA, on the African continent, the Middle East and in various South American countries, property prices control, rents stability, free housing for poor citizens, government control of money creation, interest rates limited to one per cent per month, no compound interest, abolition of debt-slavery, and the trigger for Caesar’s assassination: forcing aristocrats to employ their capital and not hoard it. Think of the US citizens that suffered damage in 2012’s Hurricane Sandy; the US government promised help but citizens are still waiting for financial assistance to filter through to them. Does this mean that self-help has ceased to exist as a moral virtue, or that government agencies are totally corrupt?

The subsequent move to the gold standard and to the imposition of a church tax that converted into a process of gold hoarding in Constantinople and Rome, further hastened the end of the Roman Empire, which then simply became a parasitic organism, subject to alternating phases of inflation and deflation. Goodson’s lesson is that a healthy society has a state-issued means of exchange that is free of debt and interest.

In Chapter II Goodson details how England, the once proud people of yeomen and peasants, out of indifference, has become a multi-cultural melting pot of debt slaves all because it permitted Jews to set up the current monetary system, which, in the form of the Bank of England, has certain of its operational aspects legally protected by the Royal Charter, Section 27(9) of the Companies Act of 1976, and the Official Secrets Act of 1989. While reading this I thought of how difficult it is to write any kind of history when so much material is still locked up in secret archives.

Chapter III details an example of an historically political/ financial success story the French Empire under Napoleon aimed to become financially independent and achieve autarky in the production of domestic consumer goods. Although achieved in part, it was thwarted by the Rothschild family’s international financial dynasty, which used the resources of Russia, England and Prussia that were under their control to destroy Napoleon’s dream of gaining for France financial independence.

If we recall how Hitler’s Germany and its allies during World War Two also fought this financial monstrosity, then think of Iraq, Libya, Syria, Iran etc. and how these nations were not beholden to this financial clique and paid the price for it. Goodson’s brief and clear narrative about Napoleon’s endeavours, reveals how this attempt at extricating a nation from this murderous grip always ends in wars and physical destruction of countries that refuse to bend to that particular Jewish pressure.

Chapter IV focuses on the nitty-gritty of the process that enabled Jews to consolidate their control over global financial resources. The Bank of England’s founding in 1694 and Nathan Rothschild’s gaining control of it in 1815 are pivotal to the narrative. Goodson points out that at the beginning of the twentieth century there were only 18 central banks, mainly of European extraction.

The Commonwealth Bank of Australia was founded on 15 July 1912 and this led to extraordinary economic developments that ceased when the bank became a member of the International Monetary Fund, which is subject to the rules and regulations of Rothschild’s Bank for International Settlements.

The political ramifications of this banking consolidation Goodson says, led to World War One which aimed to destroy the Russian Empire and its State Bank, the break-up of the German, Austrian-Hungarian and Ottoman empires, and to gain control over the resultant smaller states through central banks and finally to the establishing of the Jewish State of Israel in Palestine.

Chapter V introduces the reader to the twentieth century’s Great Depression and its horrendous effects, especially upon primary production that led to a terrific liquidation of all agricultural products and an orgy of speculations on the Stock Exchange.

Although there is a passing reference to C H Douglas social credit and I. N. Fisher’s Chicago Plan, it was Dr Gottfried Feder’s May 1919 talk on The Abolition of Interest Servitude that brought about a global re-think of monetary reform. Adolf Hitler mentions his attending Feder’s talk in Mein Kampf because the core essence of the NSDAP political program is “the sham state of today, oppressing the working classes and protecting the pirated gains of bankers and stock exchange speculators, is the area for reckless private enrichment and for the lowest political profiteering.”

Italy and Japan followed suit with South Africa to this day battling its traditional 1652 established banking power base, which is in the hands of a clique of criminal bankers, who continue to exploit and enslave the people of South Africa.

The 40-odd pages that make up Chapter III in the companion volume Inside the SA Reserve Bank, is a gripping narrative of how Stephen Goodson was removed from the South African Reserve Bank as a board member and how an allegation of so-called Holocaust denial was used to achieve that end. I do not wish to list the intrigues, the machinations and other such matters that Goodson endured because this first-hand account is a must-read for anyone interested in such facts-of-life battle-ofthe- wills, and how only individuals whose moral and intellectual integrity is still intact can survive such personal attacks. It must be the only account of an insider’s view of a reserve bank whose structure is externally controlled which is, of course, the basic theme of Goodson’s book.

Let me state that Stephen Goodson’s appearance on Deanna Spingola’s program1 in the USA on 28 June 2011 contributed to his termination as a director. What’s the saying about the enemy listening in?

It must be noted that besides the personal details offered by Goodson in this narrative, his technical knowledge of what good governance of an organisation entails, makes him an ideal candidate for at least a couple of honorary PhDs!

Anyone who has up to this point closely read the book’s six chapters can now in Chapter VII expect to find information that will detail where in the world a functioning economy operates under such ideal conditions where usury has been banished. Goodson does not disappoint.

If the problems caused by central and fractional banking are to be solved, then it is imperative that what must happen is what Goodson’s thesis spells out in no uncertain terms: central banks need to be reformed and converted into government owned monopolies, if the impending economic and demographic collapse is to be averted.

The list of countries where state banks operate a healthy economy is not long. Historically it was Australia, France, Germany, Italy, Japan and Russia where state-owned banking was a success. Now the US state of North Dakota is such a success story where, for example, the State Bank pays its profits to the North Dakota government.


There has been no credit crisis or credit freeze in North Dakota, as the bank provides the state’s own credit. By having established its own economic sovereignty, North Dakota has become the most financially viable and prosperous state in the USA. Likewise with the States of Guernsey. The Central Bank of Libya’s success story explains why predatory capitalism of western liberal democracies needed to destroy that country.

Libya exhibited the classic symptoms of full employment, zero inflation and a modern day workers paradise.

Free education.

Students were paid the average salary for which subject they were studying.

Students studying overseas were provided with accommodation, automobile and €2,500 per annum.

Free electricity.

Free health care.

Free housing – there were no mortgages.

Newly-wed couples received a gift of 60,000 dinar ($50,000) from government.

Automobiles were sold at factory cost free of interest.

Private loans were provided free of interest.

Bread cost 15 US cents per loaf.

Gasoline cost 12 US cents per litre.

Portion of profits from sale of oil was paid directly into bank accounts of citizens.

Farmers received free land, seeds and animals.

Full employment with those temporarily unemployed paid a full salary as if employed.

Goodson ends the book on a somber note, a dire prediction, especially for his home country South Africa:

The excessive concentration of power and wealth, based exclusively on fraudulent banking methods, has enabled a tiny minority of criminal bankers to control the media and educational processes, and thereby to brainwash a mindless and atomized humanity, deluded by the spurious comforts of democracy and materialism, into the suicidal practices of savage, bloody and pointless wars, central banking and cultural degradation, which will eventually result in its demographic extinction.

The book is a must-read and can be ordered from the following outlets in Australia and NZ: Dennis Jones & Associates, James Bennett / ALS / DA Information Services, Mercury Retail Ltd, Word of Distributors, www.Fishpond.com