Monthly Archives: July 2009

The End of Money: Take Power Back From the Money and Banking Monopoly

Alternet has just published another one of my articles, The End of Money: Take Power Back From the Money and Banking Monopoly.

The dysfunctional nature of the dominant global system of money and banking has for a long time been apparent to anyone who has cared to look at it. Now, in light of the present financial meltdown, it has become painfully obvious to virtually everyone. What most people have failed to recognize is that, regardless of the nominal form of their government, their political power has been neutralized and exhausted by the privatization and misallocation of credit money.

The political money and banking system disempowers communities and enables a small elite to use the present centralized control mechanisms to their own advantage and purpose. It misallocates credit, making it both scarce and expensive for the productive private sector while enabling central governments to circumvent, by deficit spending, the natural limits imposed by its above-board revenue streams. more..

Government By Goldman Sachs

Reporter Matt Taibbi recently wrote an article for Rolling Stone called The Great American Bubble Machine. In this five part video he elaborates upon the theme and describes how Goldman Sachs has virtually taken over the U.S. government. Watch it.

Paul Craig Roberts: Can the Economy Recover?

Paul Craig Roberts and I have pretty much the same answer to this question. He says:

There is no economy left to recover. The US manufacturing economy was lost to offshoring and free trade ideology. It was replaced by a mythical “New Economy.”

The “New Economy” was based on services. Its artificial life was fed by the Federal Reserve’s artificially low interest rates, which produced a real estate bubble, and by “free market” financial deregulation, which unleashed financial gangsters to new heights of debt leverage and fraudulent financial products.

The real economy was traded away for a make-believe economy. When the make-believe economy collapsed, Americans’ wealth in their real estate, pensions, and savings collapsed dramatically while their jobs disappeared.

He then goes on to identify Goldman Sachs as “the bankster firm [that] controls the economic policy of the United States.” Read the full article here.

Rep. Grayson Stumps Bernanke

Fed Chairman Bernanke could not or would not tell which foreign central banks got $500,000,000,000 from the Fed.

Who Owns the U.S. Government?

The only surprising thing about this report is that it appeared on Fox News. Goldman Sachs has just reported record profits. Glenn Beck explains how your government made it possible.

The Crisis of Credit Visualized

Confused about the origins of the credit crisis? This animated video by Jonathan Jarvis helps to clear away the fog.

How Bad Will the Economy Get?

How Bad Will the Economy Get? This is the title of my article that was recently published on Alternet. It begins with the claim that:

Historically, every financial and economic crisis has been used to further centralize power and concentrate wealth. This one is no different, and in fact the moves being promoted by the Obama administration and the central banks of the Western powers will take the whole world to the pinnacle of financial despotism — unless enough people wake up and claim their own “money power.”

It continues with an outline of recent and historical developments that make the case, but concludes on a hopeful note with my brief description of existing cashless exchange mechanisms that are not dependent upon political money or banks. You can read the complete article here. - t.h.g.

Credit Clearing Already a Proven Means of Exchanging Goods and Services

People often ask me how the credit clearing process that I advocate might be established and where existing successful models are to be found. I point them to the commercial “barter” sector, the 75 year old WIR Bank in Switzerland, and a few exchange alternatives that have been emerging spontaneously from the grassroots. Of course, what these trade exchanges offer is not “barter” at all, but credit clearing.

Significant as it is, the commercial trade exchange business is not well known because it does not yet involve consumers or employees to any great extent. It services businesses, mostly small and medium sized businesses (SMEs), and mostly at the retail level or in the service sector. Credit clearing and private currencies are important elements in the economy at any time, but they become even more necessary during times of financial disruption such as the current one.

On June 25 Sky News in the UK did a live interview with one of the leaders in the trade exchange industry, Wayne Sharpe, the charismatic founder and chief executive of Bartercard, International. Sharpe discussed the role that his company, and others like it, plays in revitalising the UK economy by helping businesses to “reserve cash, reduces costs and increase sales and profitability through a sophisticated system of barter.” Here is a transcript of that interview taken from the Bartercard website. (Thanks to Bob Meyer of Barter  News for alerting me to this report). – t.h.g

Why cash isn’t king – The flexible friend that can help businesses beat recession:

Bartercard works like a credit card, but transacting by clients’ own goods and services via its own unique Trade Pound ‘currency’. On joining, account holders receive a transaction card and an interest-free line of credit. When spare capacity is sold, members’ accounts are credited with trade pounds. When purchases are made, trade pounds are deducted. Bartercard allows members to trade without the need to spend valuable cash or engage in a direct swap.
Given recent global economic developments, Bartercard is proving totally relevant. It’s phenomenal growth in the UK market over recent months is testament to this. One reason for the rapid growth is that Bartercard charges success-based fees; charging a small commission on each trade so, if it doesn’t produce results, costs to its members are negligible.

Another reason for Bartercard’s success is the support it provides the beleaguered SME sector. SMEs are the lifeblood of the British economy; accounting for over 60% of domestic GDP yet, in the main, they have been overlooked by government.

Lavish financial support from government has been reserved for selected big businesses and in particular, the banking sector. Instead of using the money to stimulate the economy, the banks have devoted these huge resources to bolstering balance sheets and improving share price. The banks are failing to lend even to those SMEs with solid foundations and a great track record but which need financial support in extremely difficult trading conditions.
Bartercard is providing a real solution. More than 80% of its members are SME’s and Bartercard aims to generate 10% in additional sales for each and every member business, then use that trade to offset regular cash expense, thus improving cash profit by up to 20%.

With over 21 million transactions and more that $15 Billion in trade volume worldwide since inception Bartercard is a proven method to increase SME;s trade.
“I have lived in the UK for over 7 years now and I know and feel for the SME’s – they are the heart of this nation and we will help them beat the recession in any and every way we can” says the eternally upbeat Mr. Sharpe.

It seems the Sky is the limit.

New Money: A Creative Opportunity for Business

Every so often, I’ll browse though something I wrote previously. This article,  New Money: A Creative Opportunity for Business, was originally published in Perspectives on Business and Global Change (World Business Academy), Vol 11, No 3, September, 1997, and later included in the anthology The New Business of Business: Sharing Responsibility for a Positive Global Future, by Willis Harman and Maya Porter (Berrett-Koehler, 1997).

It is still pertinent and timely. You can find it in the sidebar under Resources, Monographs, or click here.

Book excerpt: A Complete Web Based Trading Platform

I’ve posted on this site another excerpt from my book, The End of Money and the Future of Civilization. This portion of Chapter 17 outlines my view of an emergent Complete Web Based Trading Platform. Click here or find it in the sidebar under “Resources, Excerpts.”

The book can be ordered from Chelsea Green Publishing, Amazon.com, or your local bookstore — t.h.g.