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Lecture 5 of 10 · The Roots of the Fed

How does US foreign policy relate to US banking?

Murray N. Rothbard · 1:11

How does US foreign policy relate to US banking? by Murray N. Rothbard is a free audio lecture (1:11) at freecapitalists.org, part of the 10-lecture series The Roots of the Fed.

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0:00The United States' imperialism began in the late 19th and early 20th century by imperialism and sending the marines in to overthrow a government, putting another one in, in Latin America, because the various bankers had invested in government securities, Nicaragua, one prominent example, other Latin American countries, and the securities were being defaulted, the governments weren't paying off. Now usually in a free market situation, of course if the debtor doesn't pay off, You write the loan off, or of course nowadays you get the U.S. taxpayer to finance you. Since that wasn't an option in those days, the various bankers, both investment and commercial bankers, I should say now, who got the U.S. government to send the Marines in to force, to do what?

0:50To force, say, Nicaragua, just one prominent example, to raise their taxes. So this is the Nicaraguan taxpayer, long-suffering as they were, could pay off a Chase Bank and other bankers who owned Nicaraguan securities. So in other words, the Marines function as a sort of collection agency for American banks.

Part of a series

The Roots of the Fed

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Speakers: Murray N. Rothbard.

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