I am a student of history, and frankly until recently I have accepted the "mainstream" view that the first American Revolutionary War, AKA the Revolutionary War was caused by "Taxation without Representation". Current political and economic changes in the world have caused my interest in history, banking, finance, taxation, and politics to reawaken in a large way. So I have been doing some research. To get a grasp of what I am about to talk about it is necessary to understand about currency, its dynamics, and what "money" really is. First let us define money. I will use Websters Dictionary. The current definition is: 1) something generally accepted as a medium of exchange, a measure of value, or a means of payment: as a) : officially coined or stamped metal currency b) : money of account c) : paper money 2)a : wealth reckoned in terms of money b) : an amount of money c) plural : sums of money - funds 3) a form or denomination of coin or paper money 4)a : the first, second, and third place winners (as in a horse or dog race) —usually used in the phrases in the money or out of the money b) : prize money . OK So we are looking at the fist definition entry here, all parts. Money is an accepted medium of exchange, a measure of value. Check. Officially coined or stamped metal currency. Check. Money of account. Check. Paper money. Check. I borrowed the WABAC machine from Mr. Peabody and Sherman, so lets hop in and WHOOSH off we go to the pre-Revolutionary colonies. OK we land in London in 1757. We see Benjamin Franklin talking with a potential manufacturer of Franklin stoves. He is asked: "How do you account for the prosperity in the American colonies?" He replied: "That is simple. It is because in the colonies, we issue our own currency. It is called Colonial Script and we issue in the proper proportion to accommodate trade and commerce." OK So the then American colonies had 100% control of their currency, and it was not debt based. The currency was not borrowed from one place, at interest, but instead printed only in sufficient quantities to accommodate trade and commerce. In other words, the American colonies did not use their power to print money to create artificial, short term wealth, which in turned would cause inflation. The Bank of England, on the other hand had a different idea. Into the WABAC we go and just jump ahead a slight bit. In the 1760's, the Bank of England introduced a bill into Parliament stating "No colony may print it's own 'script'". The colonies, according to this legislation, would have to issue bonds and sell them to the Bank of England, who would then loan the money to the colonies that the colonies would have to then use as currency. The colonies would then have to pay interest on that loan to the Bank of England in order to have the "privilege" of a currency! Whoa there! Hang on a dang blasted MINUTE! That sounds creepily like the system we have in place now. The Federal Reserve Bank (a privately owned and held bank - which is about as Federal as Federal Express), under the dictates of the Federal Reserve Act of 1913, loans (at interest) the Federal Reserve Note, to the Treasury Department in exchange for Treasury Bonds. Let us continue examining the issues that, based on my research, were truly the core cause of the Revolutionary war. OK, so we now have colonials who were prosperous, being forced to borrow their currency from a bank - paying interest on that loan. Soon after this took effect, massive unemployment and poverty started setting in to colonial life, because the Bank of England only allowed the colonies to borrow half of the quantity of Colonial Script that was previously in circulation. Ben Franklin, and others realized this, and Franklin is on record as saying: "The colonies would have gladly borne the little tax and other matters had it not been that England took away from the colonies their money, which causes unemployment and dissatisfaction." In another quote attributed to him he stated: "The refusal of King George III to allow the colonies to operate an honest colonial money system, which freed the ordinary man from the clutches of the money manipulators, was probably the prime cause of the revolution." Franklin acknowledged that the cause of the American Revolution was the resistance of the colonies to the idea of borrowed money, resulting in debt and inflation as well as interest payments, and not "taxation without representation" as is commonly believed. We all know the results of that little disagreement. I will cover the resistance the American leaders had to a "National" bank until President Wilson - who later lamented his mistake - in my next "Real History" post. Prepare for the worst, pray for the best.