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.
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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