The Rise of the Nation-State: A Banker's Conquest

In a recent exploration of YouTube, I stumbled upon an enlightening interview with the renowned economist, Professor Michael Hudson. His vast knowledge and expertise in the realm of economics have few parallels, as evidenced by his prolific body of work, including 18 published books and numerous treatises on finance, geopolitics, macroeconomics, and the history of economics and banking.

Unraveling the Origins of Modern Nation-States

The Bankers' Scheme and the Birth of Nation-States

Throughout history, kings and princes have often resorted to borrowing money to finance their wars. The costs associated with soldiers, equipment, and military campaigns are staggering, as evidenced by the billions of dollars the United States has "lent" to Ukraine in its proxy war against Russia. Ironically, these vast sums are directed towards killing Russians and Ukrainians, while the pressing needs of the American people, such as homelessness and higher education, are often neglected. This disparity in national priorities is a sobering reflection of the complex dynamics at play.According to Professor Hudson's insights, the origins of modern nation-states can be traced back to the schemes of bankers in the 15th century. The Pope, seeking to expand the influence of the Church, encouraged European monarchs to wage wars against other Christian denominations. In exchange, the bankers were promised repayment from the spoils of these conflicts, including the seizure of lands and treasures from defeated rivals.

Collateral and the Rise of the "Fiscal State"

However, a problem arose when princes found themselves unable to repay their loans. As individuals, they lacked sufficient land and resources to serve as adequate collateral. Drawing inspiration from the Italian communal city-states, where citizens collectively borrowed from bankers and pledged their limited lands and incomes, the Pope encouraged the unification and expansion of these city-states into larger geographic domains.The creation of these "fiscal states," or modern nation-states, was a triumph for both the monarchs and the banking class. By merging smaller entities into vast territories, the new nation-states could now offer vast swaths of farmland and the collective incomes of hundreds of thousands of citizens as collateral for loans. This arrangement provided the necessary financial backing for the crown and its representatives to wage wars and pursue their agendas, while the bankers reaped the rewards of their schemes.

The Psychological Shift and the Birth of National Identity

The emergence of these expanded nation-states also had a profound psychological impact on the minds of the people. Individuals who once identified as Munichites, Berliners, or Bavarians were now recast as "Germans." Similarly, Virginians, Texans, and Californians were subsumed under the broader identity of "Americans." The same transformation occurred for those who previously saw themselves as Brawleyites, Calexicans, or Holtvillites, who were now labeled as "U.S. citizens."This psychological re-engineering had far-reaching consequences. Individuals were no longer defined by their local affiliations but by their allegiance to a larger, often abstract, national identity. Their lives and incomes were now pledged as collateral to pay off loans made in their name, without their direct participation in the decision-making process. The hallmarks of true equality and democracy – full participation in decision-making – were often overlooked, as the citizens of these newly minted nation-states found themselves bound to the agendas of the crown and the banking elite.

The Enduring Legacy of Banker-Driven Nation-Building

The transformation of city-states into nation-states, driven by the ambitions of the banking class and the machinations of the Church, has had a lasting impact on the world we inhabit today. The nations we know and identify with are not merely products of organic cultural and historical evolution, but rather the result of calculated financial schemes and the consolidation of power.As we navigate the complexities of the modern world, it is crucial to understand the origins and underlying forces that have shaped the nation-states we inhabit. This knowledge not only provides a deeper appreciation of our shared history but also sheds light on the often-hidden agendas that continue to influence the policies and priorities of these vast geographic domains. By confronting this legacy, we can work towards a more transparent and equitable future, where the true principles of democracy and self-determination are upheld, rather than undermined by the pursuit of wealth and power.