Colonialism has always been about who owns the capital. The colonizer owned it all. The colony owned no capital and, more important, had no means to produce it. The central bank in the colonizer’s state produced money and capital. Capital was transferred to the colony and had the same power and efficacy there as in the home country. The former colonies as new independent states were forced by international financial practices to set the value of their currencies in direct relationship to what it was worth in pounds or francs or other monies of developed countries. Their power to create their own capital was severely restricted.
The central government established in America in 1790 by the American Constitution was not a fully sovereign government like those in European states who became the masters of colonies. Washington had no central bank with the power to create the money supply for its union of 13 states. It was not a state and it had no power to rule its 13 states as colonies. It acquired new territories for its union of states not by ruling them as subservient colonies but by accepting them as new states of its union.The banks of the newly admitted states became automatically part of an established interstate banking system with the right just like the older states to create new money for their businesses in the same currency, the dollar, which already existed. This was a completely new and revolutionary way to develop new territories. Independent states today can best obtain the power to create their own capital by applying to the Congress in Washington to become new states of the American union. Only by becoming an integral part of a highly developed banking system and an integral part of a well developed economy in a union of states can they create as freely as possible their own capital.
Daniel McNeill
Daniel McNeill’s books are at his author’s page: www.amazon.com/author/graceisall
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