By the editors
Wars have always been one of the most profitable ventures in human history, despite the enormous human and economic costs. The “international banking cartel” (a complex network of banks and financial institutions) has long understood that wars are not just bloody conflicts between nations, but an opportunity to make huge profits. By exploiting chaos and destruction, these banks reap huge profits, and sometimes even contribute to pushing for wars in order to secure their financial interests.
In the United States, the role of banks in financing wars is a clear example of this overlap, with large financial institutions such as JPMorgan and Bank of America financing the US government, either directly or indirectly, through the Federal Reserve. This financial system allows these banks to obtain government bonds and then make profits through interest, as if they were printing money for the federal government. By 2023, the Federal Reserve held about $2.5 trillion in federal government debt, demonstrating the extent of these banks’ involvement in financing wars and government spending.
Financing wars.. from kings to central banks
In ancient and medieval times, financing wars was a major challenge. Kings who wanted to wage wars needed to raise money from limited sources, such as goldsmiths or the nobility, who owned gold and silver. This traditional form of financing limited the ability of rulers to wage long or large-scale wars, as resources quickly ran out. Often, these financiers required certain guarantees or gains from the lands and spoils that the king might obtain from war.
However, this situation began to change radically in the late 17th century, when the Bank of England was established in 1694. This event was a turning point in the history of war finance. For the first time, governments could finance their wars by issuing bonds, attracting investors who were willing to finance military efforts in exchange for a fixed financial return. This radical change allowed Britain to finance a series of long wars in the 18th century, including the War of the Spanish Succession that began in 1701.
Rothschild Empire.. Financing Major Conflicts
While the Bank of England had begun the process of financing wars in a more organized way, the Rothschild family became a symbol of this process during the 19th century. Mayer Amschel Rothschild, who began his career as a goldsmith and merchant in Frankfurt, Germany, founded his first bank in the 1760s. As his business expanded, he sent his five sons to various European capitals, including Paris, London, Vienna and Naples, to establish branches of the family in those cities.
During the Napoleonic Wars, the Rothschild family became one of Europe’s largest war financiers. The height of their banking business came when they used the wealth of the German Prince William of Hesse-Cassel, who asked the family to invest his money in British government bonds. Instead, the Rothschilds used the money to trade in war resources and made huge profits. Not only that, but the family financed both sides of the war, ensuring that they would profit regardless of the outcome of the war.
The story of Nathan Rothschild at the Battle of Waterloo in 1815 remains one of the most controversial in the world of finance. According to some accounts, Nathan Rothschild received news of Napoleon’s defeat before anyone else in London. He took advantage of this information and began selling British bonds, causing panic among investors who believed that Britain had lost the battle. When prices fell to their lowest levels, Rothschild bought the bonds back at bargain prices, making huge profits when everyone knew that Britain had finally won. Although this story may be exaggerated, it is emblematic of how bankers exploit world events to make profits.
The American rise in war financing
By the 20th century, American financial institutions had taken a larger role in financing wars. One notable example was World War I, when the United States transformed from a debtor nation to a creditor nation. As the war began to drain the resources of Britain and France, those countries turned to Wall Street for loans. JPMorgan played a pivotal role in this process, not only as a financial intermediary but also as a supplier of war supplies and commodities.
The influence of American banks in World War I was so great that some historians believe that President Woodrow Wilson was forced to enter the war to protect the interests of American banks. There was concern that if Britain and France lost the war, they would not be able to repay the debts owed to American banks.
Controlling public opinion.. banks and media
The influence of banks was not limited to financing wars, but also extended to controlling and manipulating public opinion to ensure the continuation of conflicts. During World War I, JP Morgan hired 12 prominent journalists to identify the most influential newspapers in the United States, and succeeded in purchasing 25 major newspapers to ensure that they published views supporting the war; this strategic move played a major role in influencing American public opinion in favor of the war.
During World War II, American and international banks were involved in financing both sides of the conflict. Adam Lepore’s “The Tower of Basel” and Anthony Sutton’s “Wall Street and the Rise of Hitler” document how banks continued to finance Nazi Germany, and even exchange information with each other, while the countries were at war.
From wars to luxury.. new battlefields
As the pace of major wars has declined in recent decades, banks have found new ways to maintain their profits. In the 1970s, with the onset of globalization, Western governments found themselves facing a “war on poverty.” This new war, which aimed to eliminate poverty and improve living standards, required huge amounts of financing, which provided an opportunity for banks to finance these projects and continue to make profits.
Instead of the devastation of conventional wars, the “war on poverty” provided banks with an opportunity to make long-term profits by financing governments and ensuring a continuous flow of money.
Ultimately, one thing remains clear: banks have been and continue to be the biggest winners of wars and conflicts; whether it is through financing armies, controlling public opinion, or providing funding for major projects, banks remain the main beneficiaries of humanity’s biggest battles.
Even with the advent of technology and the increasing awareness of people, the relationship between banks and wars remains. As long as there are conflicts, whether on the battlefield or in the fields of politics and economics, banks will continue to play their role in achieving profits and power.
