PrepperNomics 107:  The Satanic Banking Cult

The Satanic Banking Cult. If you have been regularly reading my PrepperNomics posts, you’ve probably realized that many of my ideas for posts come from the more fevered elements of the Prepper community.  The “paranoia” about the economy seems to be never ending.

Basically, the economy is the result of our collective economic decision making, yet many preppers seem to believe that the economy will spontaneously combust at any moment, or that there is some sort of conspiracy that will destroy the economy in order to enrich a few evil people, called “banksters” or some other colorful derogatory term.

One of the more bizarre conspiracies I have heard of through Prepper circles was a belief in a “Satanic Banking Cult”.  The first time I heard of this “cult”, I thought the author was indeed crazy, as I had never heard of a “Satanic Banking Cult” despite working in financial services, literally on Wall Street, for decades.

Much to my surprise there are actually folks around who believe in a Satanic Banking Cult, as I found out via the source of all knowledge, Google.  😊

Origins of the Theory

In Europe, the tradition of religious tolerance that we have enshrined in our First Amendment, has not been embraced until recently, (post- WWII) with the primary target of religious intolerance being Jews.  Jews have existed in Europe for centuries, but the history of their treatment has been difficult.

It took the holocaust to cause Europeans to recognize that the European treatment of Jews was a bit over the top, and there are still many anti-Semitic people in Europe.

One aspect of anti-Semitism was the denial of the right of Jews to own real estate through much of Europe.  The result was that Jewish people tended to be professionals or merchants, rather than farmers, in a period where the bulk of the population was engaged in agriculture.

In addition, vilification of Jews took the form of claims that Jews were Satanists.  While this may seem ludicrous in our modern world, where religious tolerance is something we are working on, in the mid-19^th century and earlier such nonsense was widespread.

Banking in early America

Against this backdrop, the banking houses in the 18^th, 19^th and early 20^th century were segregated by religion.  Christian banking firms would generally not finance Jewish businesses, and Jewish banking houses were formed to fill the gap.

Of course, the Jewish banking houses could finance whomever they chose, and had a population of professionals available to fill their employee ranks, so they did quite well.  The most famous such bank being the House of Rothschild.

Mix these two themes, i.e. Jews as Satanists, with conspiracy theories about Jewish banking houses and you come up with “Satanic Banking Cult”.  In an effort to keep the tin foil hats happy, I should point out that there are folks who believe the Rothschilds are linked to virtually any organization perceived as secretive, or itself subject to conspiracy theories, such as the Illuminati, Freemasons, etc.

Looking at this history with the benefit of hindsight, one would think this idea would have died of its own absurdity.  However, given an unhealthy mixture of anti-Semitism and conspiracy theories about banks, and the House of Rothschild in particular, and belief in a “Satanic Banking Cult” has managed to survive to the present day.

Haym Salomon, Financier of the American Revolution

The American Revolution

Unfortunately, the folks that have subscribed to this theory do not understand the role of banks in a modern economy, and they have forgotten some key pieces of the history of the American Revolution.  To the extent that anyone remembers the fact that the Revolution required money, they remember the worthlessness of the Continental dollar.

In reality, the American Revolution was financed, as many wars are, with borrowed the money.  The Americans most responsible for financing the Revolution were Robert Morris and Haym Salomon, who happened to be Jewish.  They were among the leading bankers in the American colonies at the outbreak of the Revolution.

Haym Salomon was born in Poland, emigrated to America before the Revolution, and became wealthy.  In addition to his financial support of the Revolution, he was twice arrested by the British.

Haym Salomon and his descendants have never been repaid for the loans Haym Salomon made to finance the American Revolution.  Haym Salomon’s daughter Sally, married Joseph L. Andrews, a Jew who was born in France, and came to America as an aide to Lafayette.

Summary

Thanks to historic anti-Semitism, combined with a distrust of financial institutions, the belief in a “Satanic Banking Cult” has persisted for more than a century, despite the lack of any evidence that such a “cult” exists.  Those that want to believe in conspiracy theories are going to be unpersuaded by anything I say.  After all, the one sinister force I believe in is Murphy, and I don’t think there is anyone worried about the Irish wrecking the economy.  😊

We need to prep because occasionally Low probability events go disastrously wrong.  With enough real, but low probability, concerns I do not care to lump anti-Semitic conspiracy theories about Satanic Bankers, or zombies, on the pile.