Posted Mar 4, 2013 by Martin Armstrong
French Assignats were paper money issued by the National Assembly in France from 1789 to 1796, during the French Revolution. Like Germany during the 1920s, this was a revolutionary government the was chopping off the heads of the rich. They send capital into hiding and the Productive class fled mostly to Geneva.
When Philip IV was broke, he seized the Italian bankers, then the Papcy moving it to Avignon, and then seized everything the Knight Templars had and executed them. The Revolutionary government of France issued the assignats after the confiscation of church properties in 1790 because the government was bankrupt. They scared the hell out of people and money hoarded causing VELOCITY to collapse. The government thought that the financial problems could be solved by printing certificates representing the value of church properties. These church lands became known as biens nationaux (“national goods”). Therefore, the Assignates were a paper money BACKED by the confiscation of assets belonging to the church. Therefore, Philip IV confiscated the whole Papacy and the Revolutionary Government confiscated real property.
Assignats were used to successfully retire a significant portion of the national debt as they were accepted as legitimate payment by domestic and international creditors. This was based upon their experience with the American Revolution. However, Just as Obama made a huge deal out of military trials conducted by Bush and swore he would close Guantanamo Bay, it remains open and he just denies them any trial. The old saying, when the servant become king, he acts the same as the king. Hence, once anyone replaces government, soon they become the very thing they replaced.
The Revolutionary government engaged in fiscal mismanagement and the assignats collapsed in value when there was no coherent economic management. Thu, we find the rise of Napoleon. The key is always, and without exception, ECONOMICS! Undermine the economy and you WILL get revolution. It matters not what century, race, creed, or color. Hence, there was no restraint and they printed excessively and commingled the funds with general currency in circulation unbacked by church property that led to the French hyperinflation again AFTER a revolution.