In terms of shaping the society we live in today, these are possibly the most significant events in pre-modern Anglo-Saxon history. The most fascinating characteristic of this 800-year timeline is the common thread that interweaves these events together. That common thread, is the City of London.

We will pick up from where we left off in Part 2, and look at the ongoing legacy of the 1871 Treaty of Washington. Not only did this treaty circumvent America’s ability to use its Constitution, it set in motion a series of events that destroyed the sovereignty of almost every nation state around the world, giving birth to the bastard-child of evil, which we know as the World Economic Forum.

On The Question of Debt

In Part 2 we showed how America lay in financial ruin after the Civil War:


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The US government had promised to pay back its enormous war debt in specie (gold and silver). With a nation in collective mourning and economically destitute, how was this ever going to be repaid?
Understandably, Americans were pissed after the Civil War. However, their red-hot anger was not aimed at each other, but the British Empire, which had publicly declared itself neutral with respect to the war:


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This was no trivial matter. This was not just about gun-running; it was also about trade. One of the ships, The Lee, successfully completed 21 trips for the Confederacy. On each occasion, approximately $2,000,000 of cotton was shipped to London, with the return trip delivering an equivalent value of weaponry and ammunition for the Confederates3.

This was exceptionally poor form by the British. Their blatant support for the Confederates, while publicly declaring their neutrality, cost hundreds of thousands of lives. The extra two years of bloodshed compounded a blowout in the nation’s fiscal balance sheet, eventually leaving America owing billions to foreign bond investors.

The Americans were licking their wounds, but they were also fired up and ready to annihilate the British for their treachery:
Early attempts to resolve this dispute were unsuccessful. At one point, a claim was made that Britain
was responsible for half the cost of the war, and that the US would consider Canada proper payment.
This shocked the British and they realized they had better come to some agreement soon.

This dispute became known as “The Alabama Claims”, and conflict could have erupted at any moment, but there was something far more ominous brewing; something that frightened the living daylights out of international investors:
Consider this situation from an investor’s perspective. If Britain violated their declaration of neutrality, the United States could argue that they aided the South in a rebellion. If proven, all government debt owned by Britain, or issued in Britain, would be “held illegal and void.”

If there was even a hint of this scenario unfolding, British holders of US government bonds would immediately sell their bonds at any price, as would speculators who could see the writing on the wall. Bond prices would collapse into the abyss. If this happened, those who invested in Civil War bonds would suffer huge losses; this included Otto von Bismarck, the Prussian Chancellor of the future Reich.

At this point in history, America had just lost 600,000 fighting age males, who all believed they were fighting for the survival of their country. Within this context, if every-day Americans could use the Public Debt Clause within the 14th Amendment to give a massive “fuck you” to the British for prolonging their Civil War, would they? If we contemplate the miserable financial position most Americans were in at the time, not only would they have supported it, they would have demanded it.

Bismarck, and every other Prussian speculator, must have roiled at the thought of Americans using their own Constitution to solve their dispute against the British. If the US patriots were successful, their investments and the promise of riches from US Government bonds would be destroyed.

Something had to be done to avert this situation; something that would settle all the disputes between America and Great Britain; something that ensured that the US Constitution, and especially the pesky Public Debt Clause, was not activated.

Kiss and Make-Up

With billions at stake, and the threat of America taking the Dominion of Canada from the British Empire, urgent action was required. America was a government “of the People, by the People and for the People”. The enlightened despots in Europe could never accept that the American people could decide their own destiny, and in the process, use their Constitution to declare their public debt to the British null and void.

The 1871 Treaty of Washington averted this potential catastrophe for foreign bond investors:

Right from the get-go, the intention of the treaty was to put an immediate end to ALL disputes between the United States and Britain:


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If we look at the true outcome of the treaty, Britain was found guilty of violating its declaration of neutrality during the war, and therefore aided and abetted the Confederates. Rather than using the 14th Amendment, the United States received a net compensation payment of $10 million. The US Naval Institute determined that British involvement in the Civil War cost 400,000 and 2 extra years of brutal conflict. The $10 million America received as the outcome of the treaty amounted to approximately $25 per extra life lost.

$10 million was nothing compared to the $2.3 billion of national debt that needed to be paid back, with interest, in gold and silver. Repayment would only be possible with the blood, sweat and tears of future generations of Americans, from the North and the South.

On the world stage, America got recognition for their claim against the British. But the retribution was a joke. Why? Because the United States agreed to the Treaty of Washington, and Article 35 of the treaty gave the final word to a Prussian king who had just been crowned the Emperor of Germany.

In other words, because the Kaiser said so!

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