Information on Denmark 
Information of Denmark, http://www.lilliput-information.com/indexx.htm , Internet 03/24/2000,
e-mail-adresse: mail@lilliput-information.com
Back to the inter-war period
The United Kingdom was the first country that stabilized the
exchange-rate with a clearing-foundation, so that the United Kingdom deviated
from necessary, monetary political interventions in 1932. Why did UK not use
the gold that showed what have to be done to the economy? Instead UK used the
gold. You will see why.
In 1934 and 1936 USA and France followed the British model, and from
September 1936 these countries agreed to use the foundation in the British
version, and in the way that the three countries could stabilize their
exchanges to one another (even hold them constant), without any monetary
political interferences at all. Holland, Belgium and Switzerland joint this
co-operation of exchanges later in 1936. The Nordic Countries had just followed
Unite Kingdom without independent foundations.
Yes, there was not very much room for independence at that time. Like
today.
The stability of the exchange rates as mentioned was especially secured
by the fact that the foundation in cooperating countries had to sell gold to
each other paying with currency of the country, and by the fact that USA had
fixed the price on gold to 35 $ an ounce fine gold. This meant that dollars and
gold could replace each other in a proportion that was constant at any time.
The bilateral system of clearing accompanies the Hitler-regime, and
had to been seen from the basis including the just wild international claims on
Germany after World War I. The Versailles Treaty including the
Reparation-claims on Germany was maintained by The Allied in Paris. The total
economic reparation-claims was between 137 and 150 billion Mark in Gold. Maj
10th 1921 the claim was reduced by 42 p.c. France had for example used a fals
nevel of prices, and had also included some factories which were closed before
1914 (before the war started). There were more, less obvious reasons for the
reduction.
In the twenties changing governments in Germany tried (as mentioned earlier)
to note-print the problems away to get bearable conditions, just like the
Danish state did until 1999 - just in a smaller size -, while the rate of
Danish exchange is artificially secured until Denmark perhaps leave the
European Union. Under the conditions of the past the result was for example
that many German stock-shares went to foreign countries, because they gradually
did not wanted to receive the worthless German notes as exchange for foreign
goods. When 1 German Mark was 45 (Danish) oere, Germany let Marks flow out to
the neutral countries (for example to buy food in Denmark). If the amount we
received Marks for these food-products the whole Danish agriculture-export
under the war made a big lost, because we received Marks to the rate 45, and
perhaps they were 5 oere worth in 1921 (only 3 years after the war). Amerika
had much the same problem, because U.S.A. had an awful big amount of Marks. Therefore
it had to secure the exhangerate of Mark. Germany used that fact and let Marks
all over the world. Germany was interested in import to reexporting, as long as
it could pay with Marks in foreign countries, and it could get raw materials or
finished goods, and re-export these for Crones or Pounds. Actually it was in
German's favour to 'export German factories' so that Germans in return could
buy values in other countries, which they could not reach in any other way.
They transferred actually stockshares to get gold to buy demanded
foreign goods. It this way problems was left for some time, but the stupid
aggression-plans with Hitler in power also required full control of the
exchange in Germany.
Germany could not get gold to buy with, because of the war-indemnity and
the excluding system of stability-foundations among others United Kingdom,
Holland, Switzerland and the Nordic Countries.
The gold was circulating among the countries, that were participants in
the stability-system first started in United Kingdom. This system simply
prevented that gold should be delivered to Germany even when this country had
a surplus on the balance of foreign trade. The system of
stability-foundation was created to prevent deliveries of gold to Germany. Germany
had no gold, but nearly all trade was based on the gold, and Germany was
charged with a burden of 60 p.c. of its total national fortune after World War
I.
There was both generally, weighty international causes, but also causes
directly connected to a self-contradictory war of aggression.
Especially France and United Kingdom had the enormous charge on Germany,
but the net outstanding was on the international banks on Manhattan.
You will perhaps understand that the international trade-connections
were not just normal in the thirties, and before the war there was much talk
about the decreasing total international trade between the nations. The trade
was decreasing, and this was a disadvantage for everybody. The same is
happening today with the creation of blocs. The circumstances in the thirties
were further worsen because of the duty- and trade-obstacles abroad. After World
War I the creditors claimed that Germany had to pay in the gold. The gold was
not in Germany. November 30th 1918 there was £115,417,900 in gold in the German
Reichbank, wrote Keynes or about 6 billions dkr. The Reparations claim was
between 7 and £10 billions or between 33 and $47 billions. So between 70 and
100 times more than the worth of the gold in Reichbank.
Henry Morgenthau maintains in 'Germany Is Our Problem' (see more below)
in 1945 that the reduction of the Reparation Maj 10th 1921 was from 56,5 to $33
billions. In 1925 Professor L. V. Birck accounted there was dkr. 25 billions in
gold totally in all the national banks of the world, the half of it in U.S.A.
So even if all national banks in the world had gathered all their gold to pay
the accounted debt of Germany, the result had only been dkr. 12 billions in
1925, when the price-development, the use of capital under the war and the
surrendered area were counted in.
Accordingly to this fact I can tell that one single international bank
made 20 Bill. $ =16,200 ton of gold on World War I.
Germany tried as much as possible to secure its acces to raw materials,
foreign currency and gold. Border-crossing creation of cartels in the allied
and neutral countries helped a lot to the solution of this problem. Agreements
- caused by the bolschevism of the Sovjet Union that needed nearly everything
and especially effective equipment of production - developed to bilateral
agreements about Russian leverances of oil and Russian gold. Hjalmar Schacht
was an outstanding President in Reichbank. He made the impossible possible from
1924 to 1929 and again from 1933 to 1938. He was not a nazist. What he did, he
did for the German people. He even tried to undermine the direction of
dictatorship and to kill Hitler later in 1942, when he was involved in the coup
of July 20th.
The charge on Germany was about 150 Goldbillions anno 1919 or the half
of the German National fortune before World War I. You do not pay such amounts
in gold. Gold is only to be used to pay the small differences on balances of
trade (accordingly to the goldstandard-system).
If the charge on Germany was right or wrong means little, you may
immediately think. Until 1923 Germany should have paid about 10 billions,
including 2 billions in gold, Sterlingsbills and also 15 mill.$ for the
Slesvig-and-North-Holsten-Annexation from 1864 to 1920. The Germans accounted
to have paid 60 billions. Institut of economic, England fixed the figure to 25
billions. From January the 11th 1923 and 2½ year on French and Belgium troops
occupied the Ruhr District that was the industrial center of Germany. The
Germans stopped working and left the area. The French put some of them to
prison, but Juli the 31th 1925 followed the Dawes-Plan on American initiative. That
actually settled the disagreements till the Young-Plan from 1929.
You should not think that there was a lack of initiatives from German
side.
In 1920 went Gustav Krupp with the understanding of the German Navy.
The brightest gradually had realized that the war with Hitler-Germany
could be an expensive, perhaps a difficult duty to solve. And who shall pay,
and can they and will they pay after the war?
A New International Monetary System
It was necessary to find out something to do in order to create a better
atmosphere.
It was necessary, necessary indeed. Here it was good for the later
system and good for The United Kingdom that Henry Morgenthaus' White was
very easy to talk to for John M. Keynes regardless of their apparently
differences.
Without going into details about all the differences in Keynes' and
White's plans, I have to tell that Keynes wanted an union of clearing that let
the surplus of creditor-countries (temporarily) be used by the
debitor-countries in a way that the deficit not automatically urged the weak
governments to interfere in the mess.
This was on sober consideration a most curious system that would exempt
the politicians for the responsibility for practically everything essentially,
and it would indebt the country, if there should be just a slight lack of
ethics among the politicians of future governments.
The White-plan had been arranged to build on the payments of gold, the currencies of the
member-countries and bonds of the states. The influence on the supreme agency
of clearings-system should be founded on the quotacalculation about the sizes
of the economies of the countries and the reservation of values. Thus partly a
paper mill.
Which country and which representatives that would get the deciding
influence and right to command on this basic may seem nearly selfevident. USA
and the international banks.
Keynes would give the member-countries an automatically right to a
sudden credit, without any prearranged duty to pay in capital. Only
credit-accounts over a certain limit should bear interest. Keynes would let the
creditor-countries pay interest too in order to urge, Keynes maintained, both
the debitor- and the creditor-country to make total balance in the foreign
trade.
Only if you mix up the state and the nation, I have to add. Exactly the
state can decide and do things over the heads of the citizens in a country,
when a few are united, The Constitution seldom prevent them from it, and the
press also let it happen. And the two 'agents' John M. Keynes and Harry D. White
knew that for sure,.
Keynes was not against devaluations within some limits and after a
sovereign decision in the clearings-union and with the consent of the state,
you see.
White attached importance to the economic policy that should be the mean
against the unbalanced international trade combined to interior monetary policy
in deficit-country.
You do not have to take much notice of the precise details in the
introductions of the plans. They were introduction to negotiations with much
talk 'for the scene', but with quite another singleness of purpose behind the
stage. A performance where new international money - like in the EU now - with
the names UNITAS and BANKOR was presented.
You shall not be astonished when I tell you that Keynes' BANKOR (read:
false money) should be apple to be bought for gold, but not reverse. It is very
funny.
If you want to know more about how decisions are taken today in big
international organizations, you can read among other Frederick K. Lister's:
'Decision-Making strategies for international organizations: The IMF Model'. In
this book you are given the code to how things have to be done in the right
way, you know. You will also learn about the salami-sausage-method in
international illustration.
The final result of the negotiations should not be reached of course
until World War I I seemed to come to an end. The small indebted nations were
much easier to talk to, while their governments was in exile, and the rain of
bombs or the occupations went on.
Denmark did not participate in the money-plan-negotiations, because
Denmark was officially neutral in the beginning of the war and at the start of
these negotiations.
THE TRUTH..
does not
deal with Denmark or Europe alone. It deals with some of the biggest lies I,
and perhaps you, have been told here on Earth.
I will e-mail to you my html-file with manuscript (240 A-4 pages),
contents of which you just have read:
If you write me a letter (hard copy), ask for the manuscript The Truth....
and include US$10, £5 or DM15. You write to:
Joern E. Vig
Stadion Allé 48,
DK-8000 Aarhus C
Denmark
You cannot order a disk-copy by email. You have to write a letter and include the pay.
Puppets
are what most of us have become. Somebody else decide how we shall live our
lives. To get into the pyramid, to act inside and perhaps get higher means that
you must obey. You do not ask too many questions, but you take your part and
act without knowning the end of the play. When you look for explanations,
perhaps you are looking in the false direction all the time. Politics and
religions often make you blind - so the rulers calculate. When you know, rulers
and their masters will respect you for what you are, a real human being. Every
lilliput can use the Danish dynamite: You must not tell lies, and when you know
the truth - the opposite to lies - you have to tell the truth. Knowledge, love
and forgiveness shall return the power you lost. Nobody have to be a puppet.
To contact Information on Denmark
write to:
Information on Denmark – by Joern E.
Vig – Stadion Allé 48 DK - 8000 DK-Aarhus C
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