Marx Capital Education

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Karl Marx Capital

David Harvey is a Distinguished Professor at the City University of New York
(CUNY), Director of The Center for Place, Culture and Politics, and author of various
books, articles, and lectures.
He has been teaching Karl Marx’s Capital for nearly 40 years.
A close reading of the text of Karl Marx’s Capital Volume I in 13 video lectures by David Harvey.
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Introduction to socialistic economics – Part 8 Blood-Money.

Chapter 8 – Blood-Money

Now let’s turn back to Europe , to time when England and France
went to war also known as the Napoleonic war.

napoleon

Remember this from chapter 3 :

“After that the merchants quickly adopted the custom
of depositing their riches with the goldsmiths who
in exchange issued deposits reciepts called “goldsmith notes”
, then when the goldsmiths began calling themselves “bankers”
they call them ” bank notes”

Ok now we have a look at a family who started as a money changer and became
not only Bankers but Bankers who control national Economic.

The Rothschild family
known as The House of Rothschild,
or more simpel the Rothschilds.
A European family of German Jewish origin that established European banking and
finance houses from the late eighteenth century.

The family’s rise to European prominence began with Mayer Amschel Rothschild.
Born Frankfurt am Main, Germany 1744,
the son of Amschel Moses Rothschild,a money changer.
Born in the ghetto called Judengasse of Frankfurt,

He developed a finance house and spread his empire by installing each of
his five sons in European cities to conduct business.
He trained them on the skills of money creation.
He then sending them to the cities to open Bank’s.

Nathan Mayer Rothschild

His sons were:

Amschel Mayer Rothschild (1773–1855) : Frankfurt
( He took care of the hometown bank )

Salomon Mayer Rothschild (1774–1855) : Vienna
( Secondary Bank )

Calmann Mayer Rothschild (1788–1855) : Naples
( Third Bank )

Jakob Mayer Rothschild (1792–1868) : Paris
( Fourth Bank )
(He supported the French part of the war with loans )

Nathan Mayer Rothschild (1777–1836) : London
( He came to london in 1798 )
( He supported the Brittish with loan to the war )

Nathan Mayer Rotschild helped Prince William of Germany speculate in coins.
The Rothschilds already possessed a very significant fortune
before the start of Napoleonic Wars.
When Napoleon forced prince William in Exile he send 555.000 £
to Nathan with orders to buy British Government Stock’s.
From 1813 to 1815,
Nathan Mayer Rothschild in London was instrumental in the financing of the
British war effort, financing the shipment of bullion to the
Duke of Wellington’s army in Portugal and Spain, as well as arranging the
payment of British financial subsidies to their Continental allies.
In 1815 alone, the Rothschilds provided £9.8 million (in 1815 currency prices)
in subsidy loans to Britain’s continental allies.

Mayer Rothschild successfully kept the fortune in the family with carefully
arranged marriages, including between first or second cousins, although
by the later 19th century, almost all Rothschilds had started to marry outside
the family, usually into the aristocracy or other financial dynasties.

An essential part of Mayer Rothschild’s strategy for future success
was to keep control of their businesses in family hands, allowing them to
maintain full discretion about the size of their wealth and their business
achievements.
Following a technique used by the aristocracy, which was also later copied
by business dynasties such as the Du Pont family,

The basis for the Rothschild’s most famously profitable move was made after
the news of British victory had been made public.
Nathan Rothschild calculated that the future reduction in government borrowing
brought about by the peace would create a bounce in British government bonds after
a two year stabilisation, which would finalise the post-war re-structuring of the
domestic economy.
In what has been described as one of the most audacious moves in financial history,
Nathan immediately bought up the government bond market, for what at the time seemed
an excessively high price, before waiting two years, then selling the bonds on the
crest of short bounce in the market in 1817 for a 40% profit.
Given the sheer power of leverage the Rothschild family had at its disposal,
this profit was an enormous sum.

As we can see here the rich Capitalistic Bourgoises have the power to finance wars.

Before Nathan and he’s family there was others and there will came not many but new
families in the future who get the power to control wars with their financial values.

But, but ,but it’s not ending there , no those families they own at the same time the
industry who make everything from weapons ( Dupont ) to producing Rails , newspapers
( yes they sit on the media as well ) , Food ect ect.

When they leand money to the Government’s they at the same time sell them the nessesary
equipment to their wars , Hm does this smell like a BIG BIG rat eating the Government’s ?
The answer is yes it is , the Government’s pay for their needs to the Capitalistic’s
Bourgoises who lend them the money and this bring the National debt up and up.
Who pay for this ? The taxpayers , they enslaves by their own Government’s to produce
more and more value there end up in those families pockets.

Ps : The family supported both part in the war with loans and sold them goods.

Next chapter – The road to destruction.

Introduction to socialistic economics – Part 7 Blood-Money.

Part 7 – Blood-Money.

Ok so far so good.
Now that you know a little about the Banks and how they started
( the principles of modern Banking , the history of banks can be traced longer back
in time than the Roman Empire )

Remember this from Chapter 6 :

1: A real currency depreciation caused by the enormous expenditure on arms and war,
( Isn’t it what we do right now in a little smaller scale )
Togeather with a constantly growing in public debt.

Ok have this in your head when we turn our time to the First World War :

The First World War started with the murder in Sarajevo 28. jun 1914
Jugoslavia and Hungary, long bitter enemies, were almost at each other’s throats.
Italy was ready to jump in. But France was waiting. So was Czechoslovakia.
Ect Ect…
All of them are looking ahead to war.
But who does relly start wars ?
We all know the story from the school-books but do you know this story ?
Well listen now carefully :

In the First World War a handful of people garnered the big profits of the conflict.
At least 21,000 new millionaires and billionaires were made in the United States during the World War.
That many admitted their huge blood gains in their income tax returns.
How was that possible ? Well who makes the profits ?

The World War, has cost the United States some 52,000,000,000 $ .
The normal profits of a business concern in the United States are 6, to 12 percent.
But war-time profits – That is another matter – 60 , 120 , 200 and even 900 per cent clear income
to their own pockets.
But who was those people ? Industrial owners , yes the rich capitalists bourgeoisie , those private
people own all the materials and rescources used in the war ( It’s the same in Europe )

Dupont powder

The du Ponts (weapon company),
Before the War period – 1910 to 1914 were $6,000,000 a year.
Within the War period – 1914 to 1918. 58.000.000 $ a year profit.
An increase in profits of more than 950 per cent.

Bethlehem (Steel company),
Well, their 1910-1914 yearly earnings averaged $8,000,000.
Then came the war. And, like loyal citizens, they turned to War Machine making.
Well, their 1914-1918 average was 49.000.000 $ a year!

United States Steel.
The normal earnings during the five-year period prior to the war were
105.000.000 $ a year. Then came the war and up went the profits.
The average yearly profit for the period 1914-1918 was 240.000.000 $ .

Anaconda, ( Copper Company ).
Average yearly earnings during the pre-war years 1910-1914 of 10.000.000 $ .
During the war years 1914-1918 profits went up to 34.000.000 $ per year.

Utah Copper. ( Copper Company )
Average of 5.000.000 $ per year ( 1910-1914 ).
Jumped to an average of 21.000.000 $ yearly profits for the war period.

Let’s group these five companies ,with three smaller
The total yearly average profits of the pre-war period (1910-1914) were 137.480.000 $ .
Then came the war. The average yearly profits for this group grow to 408.300.000 $ .

Central Leather Company were 3.500.000 $ .
That was approximately 1.167.000 $ a year.
Well, in 1916 Central Leather returned a profit of 15.000.000 $ .
Just a small increase of 1,100 per cent. That’s all.

The General Chemical Company averaged a profit for the three years before the war of a
little over 800.000 $ a year. Then came the war, and the profits jumped to
12.000.000 $ . Oh only an increase in about 1,400 per cent.

International Nickel Company.
from a average of 4.000.000 $ a year to 73.000.000 $ yearly.
Not bad ? An increase of more than 1,700 per cent.

American Sugar Refining Company
2.000.000 $ a year for the three years before the war.
In 1916 a profit of only 6.000.000 $ was recorded.

It has been estimated by statisticians and economists and researchers that the war
cost United States 52.000.000.000 $ . Of this sum, 36.000.000.000 $ was expended
in the actual war itself. This expenditure yielded 16.000.000.000 $ in profits
This 16.000.000.000 $ profits It is quite a tidy sum. And it went to a very few.
Ok every time the countries go to war some very rich people gain a lot of value ,
The capitalists bourgeoisie own all the worlds rescources and they have so much value
that they even control the worlds Government’s.

In the next chapter we will have a close look at how they do this.