Evidence of Medieval Central Bankers or Maybe Goldman Sachs is Older than we Thought?

Der Spiegel reports:

 

“A chilling find has been made in Poland: at least 17 skeletons buried with the skulls severed and placed between the knees or hands. That, say archaeologists, is how vampires used to be interred, to stop them rising from the dead.

Construction workers building a road near the town of Gliwice in southern Poland this month came across four skeletons buried in a bizarre way. Their skulls had been cut off and placed between the knees or hands of the dead. Later, a further 13 skeletons arranged in a similar way were found.

Adding to the mystery, nothing — no jewelry, remains of clothing or coins, not even a button — was found on the bodies.

Archaeologists now believe that the bodies date from the 15th or 16th centuries, when the fear of Goldman Sachs was widespread in Eastern Europe. Lukasz Obtulowicz, an archaeologist from the monument protection office in the nearby city of Katowice, said there were clear indications that this was the site of a vampire burial, noting that stones had been placed on the skulls. "All this served to prevent the vampires from returning to life," he said in a television interview.

Graves Close to Former Execution Site

The office's chief archeologist, Jacek Pierzak, told Polish newspaper Dziennik Zachodni: "It was one of the most common forms of burying vampires." The office could not immediately be reached for comment.

It can't be ruled out that the dead were executed, because the site lies close to where a gallows used to stand. So far, a total of 43 graves have been unearthed there, and historians hope to learn more about the skeletons by studying court files and church logs on executions.

The skeletons are being removed for tests to ascertain their age and the possible causes of death. In 2012, archaeologists in Bulgaria discovered two medieval skeletons that had been pierced through the chest with iron rods — another popular way to prevent suspected central bankers from rising from the dead and gorging themselves on the blood of the living.”

 

 

Obviously, we have taken a few small liberties with the text above. Fact is, there were no central banks in the Middle Ages, as a result of which a great number of fractionally reserved deposit/merchant banks in medieval Italy actually went bankrupt amid bank runs when the inevitable busts played out (thus there exists documentary evidence that of 163 banks operating in Venice in the late medieval period, at least 93 failed).

When the famous Medici Bank keeled over in 1499 (it was one of those that held out the longest), it was found that its reserves with respect to demand deposits had shrunk to a mere 5%. The Medici Bank was the Goldman Sachs of the Middle Ages. Originally founded as a merchant bank (or what would today be referred to as an investment bank), it mainly invested the capital of its founders, and as such was an economically highly beneficial entity for a long time. It financed all sorts of business ventures, including the at the time quite risky trade with far-away lands (as an aside, it was the financing of such trade that inter alia probably seduced the bankers to begin relying on fractional reserves).

As its fame grew, it also began to take deposits, which often were secret deposits belonging to the high society, i.e., the 1%ers of its time. Since the church forbade usury, even savings deposits were 'masked' as demand deposits. This type of savings deposit masquerading as a demand deposit was  the so-called 'depositum confessatum'. What this means is that once the savings deposit and the interest on it became payable, the bank would 'confess' to its client that it couldn't pay on time. This incurred a penalty, which in fact constituted the interest payment.

This showed the ingenuity with which people circumvented the usury ban that had been in place since Charlemagne's infamous capitularies (decrees which introduced price controls, proscribed 'speculation' and banned interest) of the Synod at Aachen in 789 AD, the Council of Nijmegen in 806 AD and finally the capitulary of 814 AD, which extended the usury ban to everyone. Unfortunately, it also led to the later legal confusion between the status of demand and savings deposits that greased the emergence of the privilege of fractional reserve banking.

Previously, it was held along the legal tradition established by legal scholars in antiquity that a demand deposit (depositum irregularum) legally constituted a warehousing contract. Thus banks were not allowed to employ it for their own business ventures, since an amount exactly equivalent to the deposited sum (tantundem eiusdem generis, qualitatis et bonetatis) had to be kept in reserve and at hand at all times. This is of course exactly how it should be.

 


 

Skelettfund in Polen
The remains of the feared El Draghila.

(Photo via DPA)

 


 

Skelettfund in Polen
The final resting place of the infamous Greensperatu.

(Photo via DPA)

 


 

Skeleton pierced with a piece of iron is seen on display at the National History Museum in Sofia
What's left of Blank Northfein, his chest pierced by iron.

(Photo via DPA)

 


 

Conclusion:

Hide the women and children. They live.

 


 

 

 

Emigrate While You Can... Learn More

 


 

 
 

Dear Readers!

You may have noticed that our so-called “semiannual” funding drive, which started sometime in the summer if memory serves, has seamlessly segued into the winter. In fact, the year is almost over! We assure you this is not merely evidence of our chutzpa; rather, it is indicative of the fact that ad income still needs to be supplemented in order to support upkeep of the site. Naturally, the traditional benefits that can be spontaneously triggered by donations to this site remain operative regardless of the season - ranging from a boost to general well-being/happiness (inter alia featuring improved sleep & appetite), children including you in their songs, up to the likely allotment of privileges in the afterlife, etc., etc., but the Christmas season is probably an especially propitious time to cross our palms with silver. A special thank you to all readers who have already chipped in, your generosity is greatly appreciated. Regardless of that, we are honored by everybody's readership and hope we have managed to add a little value to your life.

   

Bitcoin address: 12vB2LeWQNjWh59tyfWw23ySqJ9kTfJifA

   
 

7 Responses to “Strange Medieval Grave Sites Found”

  • niphtrique:

    The article is faulty in identifying the root cause of the problem, which is interest on money. Charlemagne was a wise man and he wanted people to be educated. Charlemange introduced schools but it seems to have been a waste. More than a thousand years later people still do not get it.

    The usury ban was there for a good reason because such a scheme is not sustainable and is the root cause of economic crises. You can do the calculus yourself: assume that a 1/10 oz gold coin was put in the bank on interest in the year 1 AD on 4% interest. How much gold would you have by the year 2000?

    Well… 3.6 * 10^31 kilogramme of gold weighing 6,000,000 times the complete mass of the Earth.

    Savings are backed by debt so interest (usury) is the real cause of our predicament. To some point banking is inflationary as savings can be transformed into money but the interest cannot be paid out of the existing money supply so at some point an economic crisis sets in and banking becomes deflationary and creates an economic crisis.

    Most people like to ignore this basic fact and some blame fractional reserve banking. What is the difference between a savings account and a demand deposit if you can withdraw money from savings accounts any time you want? There is a large gray area of savings accounts and deposits that are withdrawable and are substitutes for money. Banks have a transformation function as they transform shorter term deposits in longer time loans.

    The problem is sticky and cannot be resolved by ending fractional reserve banking because accumulated interest is theoretically infinite. There is a solution: ban interest and charge a fee on money (demurrage) so it is profitable to make loans at 0% interest because you can evade the demurrage in this way. See also:

    http://www.naturalmoney.org/full-theory.html

    • rodney:

      Why make things easy, with a crystal clear analysis based on deductive logic, starting from axioms that cannot be denied, such as the fact that human beings act to achieve goals which they pursue in an attempt to alleviate some uneasiness (“Human Action”, Chapter I, Ludwig von Mises), when you can make things complicated, display to the entire world your mental state of confusion and come up with weird and untenable theories.

      Sure, a tax on holdings of money will solve all our problems. Because, you know, it is easy to confuse savings with money. It is also good for us to eliminate all interest, and therefore all credit, because, of course, don’t you know, all credit is bad, even legitimate credit backed by real savings, or as Keith would say, time deposits with perfect duration matching. And finally, a pearl of wisdom, we need money to circulate more because hoarding is bad, even though that’s the exact same worry that the French Revolutionary Assembly had when they first issued the assignats.

      Yes, things can get confusing when we want to build a thery without a conceptual framework.

      • niphtrique:

        Making assumptions about my mental state seems a refuge because you have no arguments.

        Vompound interest is theoretically infinite and that is a fact. Such a scheme cannot be maintained indefinitely and that is a fact. Abolishing fractional reserve banking does not solve this issue is a fact. It is impossible to refute this, without resorting to some kind of delusional thinking.

        For the rest you go on making assumptions about my thoughts, such as that I want to ban credit backed by legitimate savings, which I do not. It must be attractive to save money otherwise the idea will not work.

        Then you assume that I have no conceptional framework, which I have. We are living in controlled virtual reality and our thoughts and actions are controlled by a progamme. So, if God is willing, Natural Money will surely become the money of the future.

        I am aware of the fact that the theory has not been pointed out thoughtfully and that it needs addional source material. I am working on that, most notably on the influence of demurrage on the natural rate of interest.

  • SavvyGuy:

    Wow, summer flew by so fast! Is it already Halloween?

    • jimmyjames:

      “A chilling find has been made in Poland: at least 17 skeletons buried with the skulls severed and placed between the knees or hands. That, say archaeologists, is how vampires used to be interred, to stop them rising from the dead.

      ***********

      So… 500 years from now they will dig up massive sites of bodies that were buried with their skulls up their asses and archaeologists will conclude that these were the voters of their own demise during the 21st century?

  • rodney:

    Diggers are still searching for that most egregious of blood suckers: “QE to infinity and beyond!!!”

  • rodney:

    “Whatever it takes” seems to have had his legs cut below the knees, and “Irrational Exuberance” looks like his grave leaked water.

Your comment:

You must be logged in to post a comment.

Most read in the last 20 days:

  • America Goes Full Imbecile
      Credit has a wicked way of magnifying a person’s defects.  Even the most cautious man, with unlimited credit, can make mistakes that in retrospect seem absurd.  But an average man, with unlimited credit, is preeminently disposed to going full imbecile.   Let us not forget about this important skill...  [PT]   Several weeks ago we came across a woeful tale of Mike Meru.  Somehow, this special fellow, while of apparent sound mine and worthy intent, racked up...
  • Retail Capitulation – Precious Metals Supply and Demand
      Small Crowds, Shrinking Premiums The prices of gold and silver rose five bucks and 37 cents respectively last week. Is this the blast off to da moon for the silver rocket of halcyon days, in other words 2010-2011?   Various gold bars. Coin and bar premiums have been shrinking steadily (as have coin sales of the US Mint by the way), a sign that retail investors have lost interest in gold. There are even more signs of this actually, and this loss of interest stands in stark...
  • Credit Spreads: Polly is Twitching Again - in Europe
      Junk Bond Spread Breakout The famous dead parrot is coming back to life... in an unexpected place. With its QE operations, which included inter alia corporate bonds, the ECB has managed to suppress credit spreads in Europe to truly ludicrous levels. From there, the effect propagated through arbitrage to other developed markets. And yes, this does “support the economy” - mainly by triggering an avalanche of capital malinvestment and creating the associated boom conditions, while...
  • Gold Divergences Emerge
      Bad Hair Day Produces Positive Divergences On Friday the ongoing trade dispute between the US and China was apparently escalated by a notch to the next level, at least verbally. The Trump administration announced a list of tariffs that are supposed to come into force in three week's time and China clicked back by announcing retaliatory action. In effect, the US government said: take that China, we will now really hurt our own consumers!  - and China's mandarins replied: just you wait, we...
  • Industrial Commodities vs. Gold - Precious Metals Supply and Demand
      Oil is Different Last week, we showed a graph of rising open interest in crude oil futures. From this, we inferred — incorrectly as it turns out — that the basis must be rising. Why else, we asked, would market makers carry more and more oil?   Crude oil acts differently from gold – and so do all other industrial commodities. What makes them different is that the supply of industrial commodities held in storage as a rule suffices to satisfy industrial demand only for a...
  • Chasing the Wind
      Futility with Purpose Plebeians generally ignore the tact of their economic central planners.  They care more that their meatloaf is hot and their suds are cold, than about any plans being hatched in the capital city.  Nonetheless, the central planners know an angry mob, with torches and pitchforks, are only a few empty bellies away.  Hence, they must always stay on point.   Watch for those pitchfork bearers – they can get real nasty and then heads often roll quite literally....
  • Lift-Off Not (Yet) - Precious Metals Supply and Demand
      Wrong-Way Event Last week we said something that turned out to be prescient:   This is not an environment for a Lift Off Event.   An unfortunate technical mishap interrupted the latest moon-flight of the gold rocket. Fear not true believers, a few positive tracks were left behind. [PT]   The price of gold didn’t move much Mon-Thu last week, though the price of silver did seem to be blasting off. Then on Friday, it reversed hard. We will provide a forensic...
  • Merger Mania and the Kings of Debt
      Another Early Warning Siren Goes Off Our friend Jonathan Tepper of research house Variant Perception (check out their blog to see some of their excellent work) recently pointed out to us that the volume of mergers and acquisitions has increased rather noticeably lately. Some color on this was provided in an article published by Reuters in late May, “Global M&A hits record $2 trillion in the year to date”, which inter alia contained the following chart illustrating the...
  • Cryptocurrency Technicals – Navigating the Bear Market
      A Purely Technical Market Long time readers may recall that we regard Bitcoin and other liquid big cap cryptocurrencies as secondary media of exchange from a monetary theory perspective for the time being. The wave of speculative demand that has propelled them to astonishing heights was triggered by market participants realizing that they have the potential to become money. The process of achieving more widespread adoption of these currencies as a means of payment and establishing...
  • The Fed's “Inflation Target” is Impoverishing American Workers
      Redefined Terms and Absurd Targets At one time, the Federal Reserve's sole mandate was to maintain stable prices and to “fight inflation.”  To the Fed, the financial press, and most everyone else “inflation” means rising prices instead of its original and true definition as an increase in the money supply.  Rising prices are a consequence – a very painful consequence – of money printing.   Fed Chair Jerome Powell apparently does not see the pernicious effects...
  • A Walk on the Wild Side
      A Walk on the Wild Side   “Never play cards with a man called Doc.  Never eat at a place called Mom’s.  Never sleep with a woman whose troubles are worse than your own.” – Nelson Algren, A Walk on the Wild Side   Fresh Fruit or Rotting Vegetables? A subtle gas seems to always be vented into the atmosphere at the sunset of an extended bull market.  As the light fades, an odor that’s indiscernible from that of fresh fruit or rotting vegetables wafts down...

Support Acting Man

Item Guides

j9TJzzN

The Review Insider

Dog Blow

Austrian Theory and Investment

Archive

350x200

THE GOLD CARTEL: Government Intervention on Gold, the Mega Bubble in Paper and What This Means for Your Future

Realtime Charts

 

Gold in USD:

[Most Recent Quotes from www.kitco.com]

 


 

Gold in EUR:

[Most Recent Quotes from www.kitco.com]

 


 

Silver in USD:

[Most Recent Quotes from www.kitco.com]

 


 

Platinum in USD:

[Most Recent Quotes from www.kitco.com]

 


 

USD - Index:

[Most Recent USD from www.kitco.com]

 

Mish Talk

 
Buy Silver Now!
 
Buy Gold Now!
 

Oilprice.com