Chapter
7
The
treason seen from Denmark
12 European countries changed to Euro at the beginning
in 1999, and put the new currency of unit into real circulation from 2002. As
you read in chapter 5 this meant a devaluation (of 14% the first year
relatively to US-dollars) of different amounts in relation to other countries
and currency area. This march away from the expected hard Euro will
continue, if the European Central Bank
(ECB) does not increase the interest rate again and again. I does the opposite.
The
hard version
It is easier to indebt 15 nations at a time, than get
15 single nations to do so each of them. To get the Swedish, the Danish and the
British to join the last phase of the European currency-arrangement EMU they
should be forbidden admittance if the claims for joining was not fulfilled. It
did not work, because the resistance against EU and especially the Euro stopped
it in round one. Germany and France did not managed the (1997) claims either.
Tony Blair has announced great scepticism about the Euro, but the Englishmen do not rely on him even
though he promised a referendum, because he can his promise on certain
conditions about the economy. The leaders in Denmark can not tell us anything
but clichés and empty phrases. Sweden is not a member of the Euro’s thirds
phase perhaps caused by Sweden’s financial collapse in 1992, and a referendum
has also been promised to the Swedes. That Italy joined the Euro is on this
foundation nearly funny. It came out that England, France and Germany paid Italy’s
enormous mountain of debt in 1996. If that is the truth, the Euro shall remain
weak. When I add that the amount of lire was totally unknown, and 30% of the
Italian economy is black you may perhaps imagine what a fixed exchange-rate of
Euro for lire will mean. Then you can go to Greece and Portugal and find out
the amount of Euro has to been in these countries. My God. Then you can choose
between depression or a Euro-state based on subsidies that is the same as
socialism very soon.
To make a trick with the billions of retirements in
France Telecom in order to meat the EMU-claims seemed just fine, declared the
German Government, and they made more or less illegal incomes to the German
State themselves by transforming some of value of the gold in Deutsches
Bundesbank to the public budget of finances. Norway, Switzerland and Luxemburg
are the only three nations in Europe that is not indebted. Switzerland has been
living primary on discrete, general banking, and therefore it has avoided wars.
The international cash registers and the computers always have to be secured.
Luxembourg has lived on EU-bureaucracy (a little tragicomic) and banking too.
In
Norway poverty and therefore historical thrift has been the distinctive feather
among people, and this combined with the newer enormous oil-finding has given
this nation at least one hundred years more. The enormous amount of money that
the Norwegian state collects from the oil-production is a ticking bomb under
the system. A too large tax-financed sector without a wild taxation as in
Denmark (till now), was one of the results. We may hope for the Norwegians that
Norway awake in time. The Norwegians caught the treason of the European Union
at once. The Danes allowed themselves to be persuaded by sweet words and blow with
a stick. A Norwegian-Danish union that has been before would not be the worst.
Denmark's debt-problem have to find a solution without too much speculation
against the Danish krone, and without more instability and stiff. Norway paid
the last repayment of its loan-debt in the summer 1995. The Danish must
certainly contribute with something else, and we are prepared. It could for
example be some more of the Danish oil-occurrences in The North Sea. The redeeming-project of the EU, and that of
the world are precisely the same thing. It can be the destruction of Europe and
of the World again. You can of course believe in the independence of Germany
That means some kind of German occupation of Denmark again, perhaps the old or
a renewed religion once again.
In Denmark we ought to copy central German Post War
rules for the emission of money, decide well-ordered anti-monopoly laws, but
perhaps find Valdemar Sejr's Jydske Lov from 1241, and make it up to date, also
with unquestionable respect to the relation to the fourth power - the media. It
is deciding to see the truth that Humanism like all isms is the true enemy of
Christianity. That was not taken into account in the American Constitution.
Britain's Magna Charta builds on the
separation of the Kingdom of the Emperor and the Kingdom of God. Petition of Right and Declaration of Right lay down that
rights as an independent, historical heritage. Martin Luther said: Man as a
sinner is salved by mercy of God alone, not by something in itself. This
principle is not stupid, the Christians would say. Other would still call it
some kind of “monopoly-entrance” to God. That is not our theme. Good and bad
principles of a constitution, read in chapter 12.
Germans
and the international banks or others should not decide everything in our
country.
Our
fathers, grandfathers and great-grandfathers knew what was best. They had never
brought us, where we ended.
The
actual coining in Denmark
Those, who think that socialism and communism just
were an East-European order in a muddle, an order that spread, but has broken
now after an superfluous and an evil experiment lasting for seventy years, are
very naive.
The
surest way for a socialistic working government in power-minority to get the
so-called non-socialistic voters to vote for socialism or to choose fellow
travelers among the candidates is to offer these voters false money, that means
to indebt them. This last mentioned system is arranged so that perhaps only a
long life teaches non-special-skilled to have just suppositions about, what is
happening over a longer span of years. The claims following the false money
(even if they apparently are only figures) have to be paid back at a moment
with work for or dependence of the rulers. There a tendency among the rulers to
hold the same course for a least one generation. So you will not see the brake
down of the monetary system more than twice in your lifetime.
A very
secure example from 'the exterior' part of the madness:
The dependence is increased by giving people houses
financed by loans based on fixed payments that are partly repayments and partly
payments of interest. Then you let the inflation work - it fits perfectly to an
increase in the public sector - so that the non-socialistic voters in any case
become supporters of inflation - this will make their payments in the house
easier to pay. So you realize, when time goes on that the total payment
(repayment plus interest) each time decreases. If the interest-payments can be
deducted in tax return - which was really insanity and completely unique in
Denmark - then those, who live in rented flats will (in big proportion) pay the
piper, the rest will become increased interest that harms the new borrowers,
for example those who invest in production. And the money-emission is increased
further, or more debt is contracted by the state in foreign countries or in
international banks. Those, who live in rented flats, must have compensating
public help to pay the rent (subsidies to secure the rent, they call it), and
the businesses must have public help to invest. But the state has no money.
The most effective is to called everything in life
social-problematic, and to institutionalize the life for as many as possible
totally or partially. It is done either by paying out false money or by introducing
a false financing of care and
assistance, eventually combine the false finance with the taxation that people
happen to be tired of, when it increases to a level, where the right name is
wage-confiscation. That is not logical, if they like the inflation, I must add.
Among other professor Bent Rold Andersen, who became Minister of Social
Security for a short period, made on his way to the top the illogical
'social-theory' that was needed to take care of the Danish for some time, and
the former Prime Minister Anker Joergensen looked on, and said devotional
things, while the chorus of new-Marxist 'apostles of disposition' with a fine
worker-educational background took over nearly everything in “Care-denmark” by
“rubber-articles”.
They did quite corresponding with the farming and the
fishing. It started with the curious private the Club of Rome, a study group
that the international establishment, which known multi-billionaires initiated.
The Club of Rome published “Limits To Growth” (1972). Later “Mankind At A
Turning Point” followed. It declares planned chock-therapy as a prospect for
the societies. Aurelio Peccei declared so in a TV interview. The mentioned
“Limits To Growth” was dedicated to Peccei. The other book seems to have
disappeared from good Danish libraries. Perhaps something had become too clear,
too controversial “to the masses”(?). The effects of the therapy have not
failed. The learning from the MIT-project developed under the Western skies. 1960s during the Back in the Kennedy administration, it
claimed that a group of 15 experts in their various fields brought together to
produce a report into ways of controlling the population and centralizing power
without the use of wars. It became known as the Report from Iron Mountain, an
underground facility in New York state, where they held their first and last
meetings. One of the members leaked the contents to a friend who leaked it more
widely, it is said. It is claimed to be a hoax, but if it was, it was an
inspired one. One of the recommendations it made to centralize power were: a
threat to the global environment. The report was completed in 1966, the story
goes, and in 1968 came the Club of Rome, the Brotherhood-front, which created
the environment movement. Till the beginning of the eighties they told
our farmers, who had been lured into EEC that they had to invest much more, and
eventually just borrow a lot of the money. There would be need of almost
everything, of rawmaterials, of
agriculture-products and generally a need for foodstuff, so they told them. They also told them to borrow with loans
secured in the pigstable, if necessary in order the buy hugwash. From the
mid eighties the same advisers suddenly found out that we then happened to be
living in a world with surplus of everything, too much production of
everything, and environment problems everywhere. Now there should be quotes of
production for every farmer, and fixed low prices calculated by bureaucrats in
EU. Then farms could not run about. Now they had to fallow the fields, and pay
the farmers some public transfers instead, because surplus stocks and
environment problems demanded controlling staff. An enormous registering- and
controlling apparatus was needed, and that gave farmers extra troubles. In
Denmark we got a whole new class of farmers, who were employees on the
bankrupted farms. Many milkproducers unfortunately committed suicide in the
middle of the miseries.
It was a planned 'assistance-project' of the worst
type. But more had to come, more was needed. Are you aware of how a monopoly
works, and do you know, what exclusive a right that is. MD Foods made dkr. 875
mill. net. result in 1991. In accordance with the ruling agreement with the
milk producers MD Foods send dkr. 200 mill. back to the farmers as revised
price-account. This year MD Foods employeed 6000, and each of them as an
average a little more than two milk producers to serve. Have anybody counted
how many sales by order of the court there were in 1991.
The
meaning was to get them on public care and under public control. A natural
death that always had been the destiny of the farmers the bureaucrats in
Denmark and in Brussels (2-3 a farmer) could not give them. And then there was
the plan that could not wait.
Today the tune is changing in the traditional totalitarian
circles. Now they have found a good place on the top with their families, their
good friends from the Party.
We are beginning to hear the perhaps eternal myth of Charles R. Darwin (1809-82) according to
his great work "On the Origin of Species by Means of natural
Selection", 1859. Darwin himself admitted however late in his life that he
had been written for the spirit of time. Science or myth, then? “The strongest
survives” or “Surving of the Fittist” and the master race. Could you perhaps
imagine debates on social and public political subjects in period 1870-1910
with a personal sense and engagement would have passed without Darwinism? One
thing is to argue that the “Darwinian science” was ideological from the
begin-ning, another is to demonstrate that the science was pressed back to
serve an ideological purpose several times and often to speake for the most
opposite ways of arranging a imagined community.
Devoted for Capitalism that clearly is no ism (the
word origine from Albert Pike and Karl Marx searching for guild) or free market
mechanisms, individualism and laissez faire did seldom or never replied against
the claim that they were very especially fond of Darwinism. The New Deal
defenders in 1930s who strongly criticied laissez faire could not have succeded
without Darwinism. Perhaps I don’t have to mention the “Sovjet Citizen” as a
new a strong ideologic human being, and Hitler also spoke for himself. The New
Marxism of the 1970s and New Liberalism in the beginning of the 1980s neither,
I think.
When everything goes wrong, and it ends wrong every
time, then it is not a coincidence. It has be planned. As F. D. Roosevelt once
said: "... in politics nothing happens by accident. If something happens,
be assured it was planned this way" Franklin D. Roosevelt - (32 Degree
Freemason) .
He
filled a post, where he could know.
The Danish had no choice in 1930s. And now..? We voted
NO to Euro.
The
largest problem of the world-economy should be the debt of the Third World
referring to the official agencies and the globalization. This you can read
everywhere you read about the economy of the world. The debt of the Third World
accounts to lesser than Western Europe incurs new debt every year. No, the
international banks have in competition with the Islamic high finance tied up
the Western nations on extreme debt-arrangements out there in the Third World,
so that we can choose, if we want to cover their steady growing,
disadvantageous debt or feel the pain ourselves.
We
chose the right thing under World War II August 29th 1943, when we were really
pressed, when the Germans began to loose, and when the resistance movement had
shown the way to go, and our police had been arrested by the Germans. It is as
if it has to be just about too late in Denmark every time. By possessing
knowledge about, what happens, you can be more free.
To those who still wonder, why the gospel of Marx and
Lenin apparently just dealt with the distress and the misery of the workers,
and did not deal with wage-work as the privilege that it has been in an
indebted world for a long time, there is to say:
Debt,
inflation and mass unemployment are caused by that concentration of power and
of ignorance that uninformed voters are letting themselves be ruled of.
Business-owners may be greedy, unions just alike, but national debt, inflation
and mass-unemployment at the same time they are not able to make, if government
and civil servants, who cleverly live on these arrangements, do not play the
game.
It began long before those new terms were invented,
and also before Hans Christian Andersen wrote “The Emperor's New Clothes”, “The
Nightingale” and “What Father Does Is Always Right”. These fairytales do indeed
deal with the same themes. Count Gert and Niels Ebbesen April 1st 1340, The
fights of the Danes with the Wendish, The Counts-Fight, and at the first
disintegration of Denmark in 1534-1536, The monopoly-treason from the Hanseatic
towns Our former Minister of Foreign Affairs Uffe Ellemann-Jensen expressed his
longing for the Hanseatic Towns, when he and the former German Minister of
Foreign Affairs Hans-Dietrick Genscher tried to persuade the Danish voters to
EU on TV spring 1993. The 700 years old problem of Southern Jutland, the
indebtedness, and the counts of mortgage, the many attacks from the south and
from the north, bad governments.
When it
was not simple treason in a Denmark easy to see, it was morbid intellectual
arrogance against peasant naivety in the best meaning of the word. Both were
managed through the money and through other weaknesses.
But many things succeeded too, in spite of Denmark's
smallness and it's pressed position in the geography. There have been
far-seeing, unselfish men and women, who have given Denmark and the Danish an
advanced positions among the nations of the world. We would have survived
without, but the lack of looking out over our borders, for example to
non-ideological thoughts and proved knowledge that has not been translated to
Danish is a serious problem in Denmark.
First you have to understand that the stupid TV fills
you with lies with halves and quarters of truth, twisted truths, and it selects
froms reality to a cyberspace that looks like reality, but is not. It never
tells you anything essential for your understanding of, what is happening. Most
of the time you have nothing to compare with. 'The official agenda' you can
take from TV, and TV might give you a hint in which direction to look. But TV
has no intentions to give you knowledge and power to defend yourself
effectively or to do your measures for your self and yours.
Once the Danish has been known in the world by single
individuals, mostly because the Danish are really hard-working and skillful,
when they are permitted to.
Today
they flee from their country, nearly as fast as the immigration from Islamic
countries flee to new Danish citizenships.
Unfortunately
many appear to have forgotten, what was and what happened, even if this is the
only thing, we can build upon, the only thing we can take power from. Instead
it seems as if it has become so compli-cated that we can no longer make up our
minds about anything but our day to day life.
If this is correct, then we must hope that the
intelligents, the well-informed, the honests are the same that they take care
of the Danish. If it is not correct, is it not incomprehensible that we can
disregard, and not realize, what is happening of good and bad around us.
The
walls of the exterior world tumble over by themselves. The walls and
strait-jackets in the mind of man are robust in a different way. They are built
and used by the rulers to deprave the thinking of those, who shall vote and
those of the subjects and the foreigners, who shall open a passage for the
rulers in the rough world.
When there might be stormy weather on the markets of
money, former Minister of Economics Marianne Jelved would like to have a
network of security (1996), even when Denmark still has its reservation with
the common currency of Europe. She did not get this network of security until
October 1996. So the wine was good, but Hrn. Tietmeier asked her if she had
imagined such “a windbreak against the storm without any conditions”. In 2000
she told us that the Danish krone was very strong. Without EU-control of our
national bank and the joining the Euro she might perhaps forget, what she said.
Nothing is true any longer. Everything is invented for the moment. “The krone
will be all alone (1996), it will have a much more lonely existence, than we
have imagined till now (1996)”, you can read in the article of Adler in BT
September 30th 1996. Can anybody tell me why the Norwegian krone manage just
fine outside Euro. Can anyone tell me why the Euro lost 30% of its value from
January 1st 1999 to September 20th 2000? I know the truth, and I shall tell you
exactely why below.
Finland was integrated with Euro from the start, but
even if Sweden could not honor the last claim. With or without help from IMF
Sweden simply had to wait caused by the disastrous collapse if 1992. The last
claim of convergency from EU about to join the Euro was the deficit on the
public finances in 1997 that must not be more than 3% of the GNP measured in
market prices. In the case France the Germans are ready to 'fifle' with the
billions in FranceTelecom to get down on the 3% on the account of 1997, David
Adler told us in BT September 30th 1996. There is that boring problem that
countries outside the common currency system may try to devalue their currency
in order to win the competition within the Euro-zone, you can read (1996). Yes,
and a press of speculation can force some countries - also Denmark - to devalue
perhaps 30-40%, if Germany e.g. supplies the Danish Government bonds, I have to
mention. Now Danish krones are tired to Euro (one the conditions hinted above)
and both are devalued with about 1,5%. a month in 1999, when you count in Yen.
With the Danish NO German authorities threatens to supply the Danish bonds, you
could read in the Danish newspapers July 11th 2000.
Neither Italy nor Greece could honor
EMU-convergency-claims, and the amounts
of the currencies in these countries make it entirely impossible to protect
their economies form outside they tell us (1996), but with countries joining
the Euro anyway the destiny of the Euro cannot be discussed. And that is the
reality before have been looking at the real-economic substance driven by the
common European currency. They joined
the Euro regardless, and that meant from the beginning: Euro shall fall. England, France and Germany had to pay the debt of
Italy, and ECB had to garantee the the solvence of the other weak countries
too. The problems began already at the
beginning of January 1999, when Sicily had enormous problems with financing of
a one billion $ deficit.
Denmark
is thrown out into to the cold, if we say no (they told us
in 1996) - like the spy, I would say. So they told us until 1997. But from 2000
(after one year with the Euro in 12 countries) they seemed to understand that
we were right. The truth is that Danish governments with different political
colors in the last 1½ generations have incurred an enormous national debt. The
Germans have taken over and guaranteed the most of the Danish loan debt and
also bought a lot of our government bonds. Borrowed welfare instead of wealth,
borrowed wage-payments and borrowed payments of retirement to the public
employees.
The so-called ‘200 strong economy of Denmark’ (the
expression of our Prime Minister Poul Nyrup Rasmussen 1999/2000) is wild
boosted. It is a lie. Read the appendix about ‘Globalization and the Danish
economy’. The stable currency-policy of the krone has not been carried out in
Denmark alone, but in Germany that has solved this problem to secure that
Denmark stays in the currency system (EMS and now continues with Euro very
soon). That is the truth. That is the reason why the responsible were so very
much afraid of a NO.
All European countries - except for Switzerland,
Luxenbourg and Norway - are wild indebted. Germany with more than 2,5 billions
DM (1995), Denmark with perhaps 1000 mia. krones (January 2000), when all
accounting-faults are corrected (mentioned above).
Everything
concerning economy in Denmark, and even in the rest of Europe has been entirely
concerning the short sight considerations invented for the mean by John Maynard
Keynes. He also created the international system of payments, of clearing and
of national debt that tempted all weak government-politicians to just borrow
and print notes instead of manage somehow in the hard way. “Totally all short
sights become the long sight when time goes by. It is precisely the long run we
have reached". It is truthfully that simple.
"They follow their guru, the British economist
John Maynard Keynes who, in the 1930’s, told the world’s leaders that it is the
responsibility of Western governments to deficit spend their way to
prosperity. When it was pointed out to him that this system was, in the long
run, unsustainable”,
Keynes simply replied, “In the long run we are all
dead anyway”.
What a perspective for Great Work of Ages.
For a few in Denmark the coming generations play a
role. A lot of Danes find the myths of Münchhausen entertaining. Unfortunately
a lot believe - for the time being certainly the most - that the myths, when
they are used in economy-considerations, are true.
For
example this one: As a rider on a horse that was ended in a swamp, he could
pull himself and the horse up again by pulling in his own hair. To become a
professor of economy that someone induced themselves to listen to in the good
society of Denmark, you should accept and follow the considerations of J. M.
Keynes in the Postwar period. Someone did so. Primery of this the
misunderstandings.
I have mentioned that Keynes himself agreed to the New
World Order - of which the EU is the one third. But he meant that this New
Order could not be hidden for the voters for nearly two generations.
All countries in EU are very strong indebted. They owe
net to the international gross banks, the Islamic and the international high
finance. Only by covering the debt, and then in future forbid the national
authorities to use more money than covered by the real production, we can avoid
that the international power play with us like a crowd of wild mousses.
Subsidy-Europe with “on leave-camouflage” and more of
corresponding kinds is saluted welcome to EU by former Chairman of the European
Commission Jacques Delors in the periodical Europe No. 9 September 1996. A
public second-rate labor market and perhaps a third too decided with liberal
votes too. The private sale-able production sector can not pay enough off to
finance this show.
With an exampel of how the Danish state treated the
Faroe Islands by using false money I shall illustrate
this in the end of this chapter.
It does
not pay off totally, because our arrangement of the community is too
consumption-requiring in relation to the production.
Regardless the considerations of The European Masters
about stability and a Social Europe (Delors expressed this need in Semptember
1996), it is easier to indebt 15-18 nations at a time than 15-18 nations each,
especially when they do not compete in the markets of products and services,
and they certainly are not meant to anymore.
If you think you could lean against Germany or you
believe the amount of euro-currency will prevent the nations from being
indebted, you do not understand the meaning of the international amounts and
number at all.
There
is nothing wrong in those more or lesse arbitrary claims of convergens. But
there is a tendency to let us believe that a index of prices save our
countries. Stability is really not accounted by a index of prices that means
some quantitive standards are to be fulfilled, and we then say the currency is
stable. Stability includes the dynamics of capital formation, securing the
process of investment, economic growth and high productivity. All this can not
be reached or calculated on the basis of some static conception.
We have
tell people the truth, after they have be filled with lies for two generations.
Nothing is impossible. But nothing helps with the euro-currency. Yes, the
volatilization of responsibility can continue a few years more perhaps.
And when the citizens will feel it bad in the society
again, then the old politicians, who are nearly abolished just like the
democracy, perhaps might say:
It was
not our fault, we did not do it, those in the European Central Bank and those
in the European Commission, they did it.
An agreement with Norway about the oil-extraction in
the North Sea in the Danish areas combined with Norway's agreement to secure
the Danish currency, when the currency-storm might begin would not be the
worst. The time of witchcraft has gone.
The
truth is easy, even to those, who are weak in faith, and it allways decide at
last.
Is the truth, what you believe in?
“Enron”,
a dejavue one lifetime before in Denmark
The
scandalous Collapse of the Agriculture Bank in 1923 throw a shadow on today
Do you really think that selling of deficits, surplus
capitalization of disappearing profits and speculation earnings have changed
since 1923. They never change, just like the people that never change to the
better.
The
newspaper Jyllands-Posten February 22th 2002 report in an article “Eron tempted
top-politicians” shortly what happened through the years with Enron.
“Influence
on politicians, Democrats as well as Republicans, so they did not control
financial operations by the rules. Coded smart letters in a friendly tune and
good fees. No government interference in the market of derivatives: To hide
debt and created surplus in the accounts were their objectives. The collapse of
Enron December 2nd 2001 was caused by the trade with empty derivatives. The
financial world especially represented by Citibank with Robert Rubin, the
materaial manufactoringfirm Enron, and
the politicians, especially the Secretaries of Finances had to play a dominant
roles all of them succed the adventure for a few. About a dozen of
investigation in the Congress.”
Has it
happened before. Of couse it has. Nothing has changes in the brains of people
since Plato’s Carve Parable 2350 years ago, I told you. The dirty tricks might
alter a little, and some them may just development more so-called
ad-vanced/sofisticated, but generally nothing has changed.
A life time has gone, and everything has been
forgotten, if nobody writes about things, and (notice) get them published.
Denmark 1923:
The
Extraordinary Commission (Did anybody
say Enron, USA?) :
The Danish Agriculture Bank was established by
Gottlieb Abraham Gedalia 1873. Gottlieb Abraham Gedalia went bankrupt in 1875.
After the collapse of the Agriculture Bank in 1923 and Emil Glückstadt’s end,
the character of the bank changed once and hopefully for ever. A. P. Moeller
(later Maersk Moeller) became the deciding shareholder directly , and through
the years also more and more the dominating via campanies own by A. P. Moeller.
On the other hand when we look at the period
1900-1923, the official Danish history writing is not certainly not fully
correct. It is very piece by piece and rather diffused, and also directly
misleading and defective.
The objective of the Extraordinary Commission was to
make good the lacks and irregularity goods in WWI, and in the after war period
until 1921. Her you have to remember that unrestrickted u-bout-war,
and the extented blocade from February 1st 1917
created a not durable situation for both Danish businesses and consumers.
During the next (or the same) war WWII “the Councel of
Price Control and goodsupplying“ which name must be more denoted, was
established. The economic secretary-cases of the commission was done by the
later economic-director Holger Roed (from this lines originate), and later
chief of office in the Great Nordic Company B. Gloerfelt Tarp. With a wider
working area the secretary had to be extented with later Judge of Country T.
Spang Hansen and later chief of office in the Ministery of Foreign Affaires
Hans Jacob Hansen. When you tak into consideration which manning according
institutions were established with it seems amasing.
The Commission then was placed in the Zahl-Chamber
Gateway that is the connection between Christiansborg and the red building. The
head of the Triumvirat which was the members the business committee, and which
managed the work of the commission was Consul Lauritsen, of other members
in the Commission can mentioned Professor L. V. Birck,
Chief-editor (later minister) Hauge, Niels Frederiksen, Jens Klejs and the
leader of the industrial sector Alex Foss, who also was a member until 1918.
Already in 1916 Birck had strongly critisized the
surplus capitalization and the
manuovres of the exchange that the union of Ballin and Hertz made of 10
shoemanufactories to A/S (limited) the United Shoefactories.
Not just the share capital was valued unrealististic
high to an amount of dkr. 8 mill. (1916), but the owners
of the businesses up till then were hold out of a
prospect that the new shares in the union which they were about to take over
instead of the old ones would be sold at a price 200. The price was driven up
to 300 in the union, before the emission a new emission of shares appeared.
About the emission is written later (1923) in the
account of the Commission of Agriculture Bank:
“The atmosphere was prepared, and when just dkr. 2
mill. was supplied (at 110%), there was a run on the
Agriculture Bank to buy shares. In Emil Glückstadt’s
correspondance are several letters from known supplicants to get the
possibility to join. Before the emission the shares were sold at a price 300,
so people lined up to get hold of the dkr. 2 mill. The amount was overscribed
100 times, 2,700 individuals put down their names for larger or miner amounts.
400 individuals got the dkr. 2mill. shares, and just the most favoured got more
than d.kr. 10,000. Of the dkr. 2mill. Max Ballin himself took over dkr. 750,000
plus 20,000 that he possible gave away among his friends. On the other hand
amounts of more than dkr. 20,000 were just given in so-called grace of humility
to people, who was closely connected to Glückstadt, Ballin or
stockholder I. M. Levin, or those according to their
posts were friendly turned. By checking the list of beautiful names that were
interested in the maintenance of the price, you will understand what a capital
offence it must have been to critisize this emission.
Now you do not have to notice the amount in millions
very much. These can certainly not be compared with some amounts of millions of
today. To illlustrate which amount were presented in the units of connecting
then, I can inform you that in the year 1900 there was totally dkr. 100 mill.
in notes curculating in Denmark. In 1914 the circulation of notes was dkr. 140
mill.
The prices of the supplied shares fell however, and a
few years later they reached 160. Something had to be done to keep the price
up, and the expedient was the great union of 1918 that lacked however technical
and economical idea, but introduced rumours of exchange and price rising for
the shares of the three single companies, and a few millions of earning to a
consordium. L. V. Birck proposed a poweful critic of this union.
At the negociations of the relations of the line that
then began in 1918, there was fertile soil of a poweful contrast and intrigue
between Birck and Ballin. Birck was denounced by the connections of Ballin in
the whole Copenhagen press.
The waves went high and at an occasion it almost came
to a directly physical confrontation between the two gentlemen.
Max Ballin belonged to the circle of speculators that
were collected round the Agriculture Bank and the stockholder I. M. Levin &
Co, and his dead by his own hand in April 1921 after an enormous unsuccesful
speculation in chevreauskin turned the price on the Agriculture Bank shares to
stagger.
In the period of swindle after the first world war the
light and dexterous councillor of statel Emil Glückstadt was the leading
figure. Through order of succession he was as 35 years administrative director
in 1910 in the biggest bank of the country, the Agriculture Bank. He collected
in the worldwar and the after war period a closed circle of speculators of the
exchange and case-makers around himself and the bank. It was people who
unworried calculated with the boom of the war period to be eternal, and who in
their valuations capitalized incomes of years that just were based on this
boom. The hausse-speculation flourized. The Agriculture Bank (AB) and its
circle surely was the the biggest capitalistic concentration of power that our
country has experienced until then. If there ever has been a third-parliament,
it has been while this court was dominating our economic life.
Not just within its own circle, but also in the press and
with that in the public consciousness Glückstadt was looked upon to be a man of
finances in the format of the world, whom everything succeded: The government
used him in an important mission: The order of the financial relation in
connection with the Re-union, the Conference of Finances in Brussels. For the
League of Nations he investigated the finances and Austria in 1921. The Danish
Central Bank looked upon his greatness, with humility the press prostrated
itself before his power.
Partly some big industry and some business enterprises
among AB and Ballin’s leather and shoe trust and partly a line of stockbrokers
and syndicates of speculation that were run by Harald Plum, and of which
Glückstadt became a President, were closely related to the Agriculture Bank.
(Harald Plum’s) Transatlantic Company that had a net of branches all over the
world was a typically expression for the reckless dreams of greatness that then
had the objective to make Copenhagen the emporium of the Baltic Sea, to a
center for world trade after the destructions of the war (WWI).
While Glückstadt still remained on the top of the
power and of the honor, Birck made his attack.
At the general meeting of the Transatlantic Company
June 10th 1922, where the account for 1921 was presented with a prosal of
liquidation or a transfer to a new company against a payment of 15% to the
shareholders, Birck leveled at a strong and detailed critic against its
organization that was a system of boxes, its bad and expensive administration,
and its trade that was characterized by chain store, and that did not give any
profit. On the reason to the crash the president of the general board said:
”The states of the market”. In the good years: “The ability of management, in
the bad years God is to blame.”
In the end of his speech Birck turned directly against
the chairman, titular councillar of state Glückstadt, when he said:
“It is not against titular councillar of state
personally that I appear, but against his fateful system of finances that yield
interest to the big capitalization, forces the one industry after the other out
in businesses that have to destroy them. This financing is a parasitic plant in
the Danish life of businesses, and when you include lack of will to pull in,
the result has to be, as we have seen that where titular councillar of state
Glückstadt walk on with his art of finances, there will never grow grass again.
You, councillar of state Glückstadt, is a great man of dimensions according to
the voluminous reports for 5 years of the Copenhagen Press, dimension which
almost burst the economy of our poor little country. You have power and
connections, and there the Danish business life and there the Danish industry
lie weakened and destroyed caused by your finance policy, and your unwillingness
against making the final account. That sound and new business cannot get the
needed capital, because it shall be used to hold up values that already have
disappeared; this is your honor and responsibility. Yes, assuredly you are a
great man! Now it ends with this firework: for dkr. ½ mill. buy of a deficit
that has been stated to dkr. 3½ mill., but after my judgement is dkr. 8½ mill.
It is a pretty nice ending for the shareholders, but to the Transatlantic
adventure itself, for concern and perhaps to yourself it is not the end, but
just a postponement, a respite.
The
commission of the Agriculture Bank of September 21th 1921
One month later the first reconstruction of the
Agriculture Bank, the first crash came, where the state had to take charge to
save the bank. Hardly urged by the public opinion, the government had to induce
a commission by a new law to investigate the matters of the bank, especially
about the cause of the economic difficulties of the bank by the law of
September 21th about the state’s interacting.
The Commission was also arranged as an extraordinary
court. It got to consist of Country Judge Rump (as Chairman) the Bank Inspector
Green and Professor L. V. birck. To the public that claimed a profound
investigation and explanation Birck had to be the one, whos name secured that
this claim would be fullfilled.
Shortly after the establishment of the Commission
later Economy-Director Holger Roed was appointed to assist Professor Birck in
the Commission. Of the other members of the Commission E. Kaufman, T. B. Riber,
W. Juul and also Laywer of Impeachment Topsoe Jensen assisted by Accounter N.
F. Torner, and Public Procecuter Viggo Thomsen assisted by Accounter Axel
Andersen and later director in the Agriculture Bank Poul Ingholt who as Managing
Clerk in the bank had been appointed to secure procuration of materials from
it.
The Commission got its rooms in the Agriculture Bank,
in the last floor of the so-called Groenske estate, a narrow house that is
placed beside of the real building of the bank. Here Glückstadt had got a
little flate-a-terre of just a few rooms, and in these the Commission and the
clerical staff arranged themselves. In very busi periods also the bathroom was
confiscated as a room of the office.
Hardly any other task has suited Birck more than the
one that had to be solved, and he felt it like a personal resposibility that it
was solved profound. His earlier critics obliged, he had yet another article
between the phases of the reconstruction, titled ”Former Director Emil
Glückstadt as a Bank Manager” (before Glückstadt became “former”), publicly
given an estimate of the lacks in the bank direction that lead to the misery
that then had not become a catastrophe yet. Here Birck did have just had a big
and wide hunting ground for his own flair toward swindle of any kind, but also a large material for economic
studies of the development in a hectic boom. Here was a foundation of the
interaction that was characteristing Birck as an macro-economist.
Birck threw himself into the worl with a violent
energy.
Characteristical for him was that he succeded just
with a single deputy to help, the first week on that basic of the existing
official accounts and report to clear up threads and the losses in swars of
reciprocal infiltrated companies of the Harald Plum concern.
The result was elaborated, but not substatial
corrected, at the later detail investigation. In those later investigations the
parodic system of trade between sister and daughter companies was made clear, a
system, which business madness was culminating in “the right of” every involved
company to send unordered goods in consigment to every one of the other
companies and to draw the bill of the
amount. The goods were made clearer by that with more freights and calculated
profits, and they was send from destination to destination at still higher
prices, which made the losses camouflaged - when sold to an outsider at a
spotprice - , when the prices increased at the world market.
When a lot e.g. was chartered three times over the
Atlantic Ocean before it was sold, the loss had become according to this. The
total loss for the concern as well as the there off floating loss for the bank
had to be written down with a nine figured number in the end.
With the same lust of action Birck began the
treatement of the relations in a line of steam ships, in the shares of which
substantial and strange speculations had been running in the bank; of the
relations of the bank to state-loans, and of the clearing up of the interior
development in a line of industry- and trade companies that figured as deficit
debitors in the bank.
A profound investigation was made of the relations in
the Ballin concern. It was among other things documented that Max Ballin and
his co-director Hugo Rothenberg permanently had had a large amount of
speculating in their own shares, besides they had
participated in a lot of other speculations, resulting in losses of dkr. 6 mill. in the firm of
stockholders I. M. Levin & Co from which the loss ended in the Agriculture
Bank. Point by point it it was proven how the consideration of the share-prices
had been the leading fact in their transactions with the customers of the firm.
Birck supplemented to an extensive degree the
information of the reports of books, of the ledger of correspondance with
conversations with leaders and the clerks of concerned firms, and came in this
way much closer to the motives that had been deciding for the transactions, and
the individual relations of which the books told nothing.
From the members of clique we experienced via Birck’s
words: “If I mention the gentlemen, who is placed in more than 10 boards of
directors of companies: C. C. Clausen, Max Ballin, Alfred Benzon, Benny Dessau,
Hey, Johan Levin, Lester Lemvig, Ringberg, Schack Eiber, High Court Laywer
Olesen a.s.o. or to mention those who made the record, Bank Director Emil
Glückstadt, who took seat in about 40 companies, you will understand that it is
the same men we meet all the way through, wearing different hats but with the
same temper.
Financial
News (Finanstidende) wrote 1922:
This
clique that has ruled the country and the people for these years, was like a
the club of the intimated. Its participants shared the posts of the board of
directors, the commissions of profits, speculation earnings, power, and
influence between itself with much mutual envy but with a tacitly understanding
of, in this way they all profit most of the office.
Concerning the bank correspondance and the telegram
correspondance of the direction of the bank were of importance to the
understanding of a lot of things. It was pretty difficult to get into, because
the firms and the individuals often were named with clever rewritings or
fantastical nicknames. The titular councillar of state on the other side of “Niels
Juel” was named the elephant that gradually was shortened to “the trunk” that
one single time changed to “the Snoebel” . The chairman of another of our big
national businesses was named “the Fool”, and so on. It was a great pleasure
for Birck to guess these riddles. Some two feet long exchanges of telegrams
seemed for a time incomprehensible. They were about the weather and the wind,
heath and seasickness and various kinds of accidental talk, helt in an
incomprehensible jargon to very well understanding ones. It lasted sometime,
before it was clear that they included no valuable information or another
language of code that had to be decoded, but just were, what they seemed to be.
Birck could not image that anybody should use that expensive foreign telegraph
connection to such an idle objective.
In the bank as well as to its circle of debitors it
made such a great damage that the share prices on the favorite papers of the
circle were manipulated via syndicates spreading rumours that the papers were
going to increase. Glückstadt and his co-director Ringberg were the leading
figures in these syndicates of speculation, who’s participants often were known
just to them personally, by not to the bank as such. After the result of the
speculation, it could be decided, if it was the directors personally or the
bank or the company in question that had been participant in the syndicate.
With this it became easy for individuals to get rid of
the losses, when the prices went down, while the profit to all of them was sure.
Glückstadt had a good all-round bank education, here
and abroad. Ringsberg’s conditions to fill his post did not go further than
what he had experienced in a stockholder’s office (I. M. Levin & Co). Both
of them was without profound economic knowledge and understanding.
In these years the companies had to stop their
activity one by one and claim liquidation. But the personal solidarity between
the managers were strong , and often they succeded as friends to get the
directors in destroyed companies placed on yet other leading posts, regardless
how unskillful they have shown them-selves to be. This flight from
responsibility among the managers while the shareholders, clerks and the
workers had to bear the burdens by losses and unemployment outraged Birck, who
draw up the text to a standard telegram (to a shipowner), who he with respect
quoted everytime a new case of this kind appeared. It went like this: “The ship
went down with man and mice, but thank God, the captain was saved.”
Exactely in this period of Danish policy the Radical
Party enjoyed (an economic contribution) via director Heilbuth that among other
things made the foundation of the rise of the Danish newspaper Politiken.
Heilbuth gave the Radical Party dkr. 1 mill. that had been earned by speculation,
and of which he, when the crash the Agriculture Bank came, owed very large
amounts, properly much more than 1 mill. Politiken was financed in this way by
the swindle of the Agriculture Bank.
On different occasions powerfull effeort were shown to
stop or limit the investigation. Not just the influentials were interested in
this, but also at other deciding factors there rose hestitations about the
amount of the possible effects of the unveiling that were forseen.
Contributory to this surely was that the transactions
concerning a syndicate of the cable-shares that later on implied a sentence of
fraud against the industry man H. P. Prior, was meant to be played into the
hands of the Commission from side of the
bank rather early in the investigation. You could not refuse against the view
that this manouvre that was meant to frighten: Would the whole top be cut off
from the business life by continuing investigations? Could “the distinguished
men’s union” take the slaughter that eventually would come? Birck succeded to
prevent the attacks against the continuation of the work.
The essential to Birck was to seek correction of the
economic mistakes that lead to catastrophe, while Rump laid the main emphasis
on the explanation of the criminal law.
After Rump’s opinion the investigation was
concentrated on relations in the bank itself, against which Birck would have
investigation carried on to the debitor of the bank to find out why the bank
had losses on its outstanding debt.
This difference of opinions concerning the size of the
work of the commission lead to powerful exchanges of view at times, and the
form of these investigations were surely effected by the two fighting parts
being as unequal as possible in the their lives of spirit as well as in their ways
of life.
By these exchanges of views about the size of the
investigation Birck did not mince his words. In this way he once chocked the
respectable Country Judge by naming him “as a jurist, who is advanced caused by
the law of gravity.”
Birck showed a tireless work in the whole working-time
of the the commission. Had he started a case, he rather continued without any
break as long as possible. A substantial part of my work with him became
working at night, often until the first streetcar reminded us that it was time
to get rest.
The report above was told by one of the central
figures of the commission (Holger Roed) 30 years after the Commission of the
Agriculture Bank ended its work. He was himself a primery source, therefore
this is a secondary source (but top qualified, indeed).
Birck left the Commission of the Agriculture Bank as a
tired and disappointed man. The cleansing he worked for did just partly become
reality. For example could Harald Plum, who got a sentence that of the public
opinion was perceived as poor acquittal, continue his business with Crown
Butter, and not until the shot on Thorø October 24th 1929 the period was made
for his business, where after his fraudulent trans-actions did not let
themselves hide. But in many felts the cleansing was not lead long enough, and
profound enough, and years had to go, and further blunders had to be made,
until the matters were becoming better. The time showed Birck was right in his
views.
1933 Lauritz V. Birck meet death 62 years old, the
quick dead he allways had wanted to have.
A central point that inspired me to tell the story was
that Birck was promised to publish his results, but the state still was
dependent of the swindles apparantly. So no publication was possible. Even to
day you cannot get the full report of his investigation. The libraries still
refers the descendants who might suffer from a publication.
79
years later I still meet ordinary people who’s parents was swindled by the
complot without knowing, what was really going on then, and when you look to
USA, you will find the Enron scandal with a story much like the one I just
referred to in extracts.
And
they say history do not repeat, what about the human abilities that had not
changed much for the last 2350 years. History has to repeat then, when we are
not allowed even to learn from it.
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