I have often pointed out, but almost no economist is willing to admit, that central governments play an essential role as “borrowers of last resort” to keep a flawed system of money and banking from collapsing. In their collusive arrangement with the banking elite, government’s debts will be monetized through the actions of their respective central banks. This is the process of currency inflation, which is now euphemistically called “quantitative easing.”
The empirical data makes this plain to anyone who cares to look at it and put two and two together. The Bank for International Settlements has just reported that global debt has increased more than 40 percent in just the past six years. You can find more details about that in this recent Bloomberg article: Global Debt Exceeds $100 Trillion as Governments Binge, BIS Says.
When debt growth, fueled by compound interest, hits the wall of physical reality, something’s got to give.
Anyone who wants to understand present-day geopolitical phenomena must pay attention to former Assistant Treasury Secretary, Dr. Paul Craig Roberts. Roberts is one of a handful of people who understands what is going on–and is willing to tell people about it. Explore his website http://www.paulcraigroberts.org/, and be sure to listen to his recent interview with Eric King, here.
In that interview, Roberts tells the story of how and why the US interferes in money and securities markets, and the effects those manipulations have on others around the world. He also predicts that the Federal Reserve will soon be faced with the choice of either saving the banks or saving the dollar, perhaps as early as the end of this year. But I suspect that the Fed may not quite yet have exhausted their bag of tricks. Because banking corporations dominate politics in most of the world, and because the dollar’s role as the global reserve currency has served the purpose of Western dominance, the Fed, in alliance with other central banks, will try to save both the banks and the dollar for as long as they can.
What is actually being protected is the global usury-based debt-money regime, that unholy alliance between politicians and top level banks that enables central governments to spend far in excess of their tax and other revenues, thereby thwarting democratic government and the popular will, while enabling banking institutions to privatize our collective credit and charge us interest (usury) to access it.
So what do the central banks have left in their bag of tricks as they taper off their massive amounts of “quantitative easing” (currency inflation)? That’s the question to ponder. I think it’s obvious that they will (1) try to corral everyone’s savings and all surpluses into government securities and Wall Street equities (think, privatization of Social Security), and (2) outright confiscation of bank deposits via selective bank failures and assessments on depositors (ala the recent Cyprus trial balloon).
Still, those can only be, at best, delaying tactics, and not without serious social and political repercussions. The real solution will continue to be denied and delayed by the powers that be. Thus it must emerge from the bottom, from the creative instincts and talents of innovators in many fields who are bringing to market better ways of mediating the exchange of value and financing the creation of sustainable, Earth-friendly, and life-supporting products and services. –t.h.g.
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There is no doubt that the world is in the midst of an unprecedented mega-crisis. It is a time of excitement and rapid change, as well as great danger. What can we do to try to discern how it will all turn out? Every society and every era has had its “seers” or “prophets,” but how does one judge which of them are to be believed? In the modern era, we tend to give more weight to predictions that are based on broad knowledge and rational arguments than upon religion and superstition. Two widely regarded present day seers are Kevin Carson and John Michael Greer. Things get interesting when there is a fundamental disagreement. So it is between these two, as described in a recent web post at City of the Future.
The debate that is described in the article, Catabolic Ephemeralization? Carson Versus Greer, is summarized in this excerpted paragraph:
So which is it? Are we headed for a future in which short-wave radio returns and a rebuilt postal service takes over from failing server farms, as Greer would have it? Or will we be able to “leapfrog” away from our old imploding infrastructure toward a world of distributed, highly efficient, peer-to-peer manufacturing facilitated by open source design?
It’s well worth reading. Find it here.
We’re on our way! Thanks to you our crowdfunding campaign has exceeded our goal. We are now assured that we will have sufficient funds to carry out our planned work in Europe this summer. Altogether, the tour will span 9 weeks from mid-June to mid-August. The first half is pretty solidly booked with multiple events in the Netherlands, Sweden, the UK and Greece; the second half is a bit more flexible with some room for spontaneous developments.
As you know, the debt crisis continues to worsen. Austerity for Greece is still in the news, and depositors with funds in Cyprus banks have been forced to take a “haircut.” Don’t be surprised if bank deposits in other countries get raided in like manner by their respective governments.
While the spotlight is presently on Europe, this crisis is global and bound to worsen. Virtually every country of the world has a central bank, and those in the developed world at least, work together. Every one of them is set up to allow their respective governments to deficit spend, and banks to lend our own credit back to us at interest. They will monetize the debt to whatever extent is necessary to keep the game going. The exponential growth of debt is inherent in the way money is created. It must stop somehow, sometime. All efforts to keep it going are futile in the long-run.
Currency inflation and cuts to social programs are the paths that bankers and policy makers have chosen, but that will do no more than delay the inevitable, and in the process create more pain for the masses. Either we create new methods for exchange and finance, or we descend into chaotic collapse and widespread civil unrest.
Let us hope that this year will see the widespread emergence of decentralized, community-based, credit-clearing networks. That’s what my mission is all about, and that’s our the best approach to making a peaceful transition to a steady-state economy and sustainable way of life.
Again, my sincere thanks for your help in supporting this important work!
The current global mega-crisis is forcing us to confront the flaws and inconsistencies inherent in the present dominant structures of economics, money, and finance. As a result, we have before us a great opportunity to open up a conversation that admits to consideration ideas and proposals that may have heretofore be rejected out of hand as radical, impractical, or utopian, ideas like those put forth by Mahatma Gandhi three quarters of a century ago.
My good friend and scholar, Rajni Bakshi, has recently articulated that possibility and those ideas in her article, Civilizational Gandhi. You can download the full article here. I also recommend her article, Replacing Keynes With Gandhi.
Ms. Bakshi is the Gandhi Peace Fellow at Gateway House: Indian Council on Global Relations based in Mumbai, India.
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According to the Mud Report, the FBI has declared that The Church of Stop Shopping to be a terrorist network. Of course, as their sources of money and credit dry up, the majority of people will have no choice about it, but to advocate that they stop shopping prematurely could upset the plans of the global elite. We cannot allow that can we?
The Greek economy has been crippled by the austerity demanded by international financial institutions. This Wall Street Journal video report shows how some Greeks are coping by going back to the land.
Every country is caught in the usury trap that is inherent in the global debt-money system, and all will follow the same course in turn. Those who happen to have land to go back to are the lucky ones.–t.h.g.
The link below takes you to a Reuters report on the Athens protests of yesterday, Thursday, October 18.
I traveled yesterday by motor coach from Volos to Athens, getting off at the Patissia train station and boarding the metro line. At the metro station where I got off there were taxis waiting and picking up passengers. Everything seemed normal to me. It seems that the reported demonstrations must have been limited to the area around the Parliament building, and the strike may not have been as general as the press reported.
In any case, the developing situation here in Greece is a clear manifestation of how nation states are being forced to surrender sovereignty upward to the elite international power group that controls the global system of money, banking, and finance. All other countries are caught in the same usury-debt trap and will follow in order. As this plan for an (undemocratic) new world order proceeds, national politicians will do the bidding of their global masters and the police and military will be used to suppress popular dissent. Demonstrations are often infiltrated by agents provocateur whose role it is to initiate violence and provide an excuse for police brutality and ultimately the imposition of martial law.
While it is important for people to express their disapproval and outrage, and to speak truth to power, it is essential that we exercise the power we already have to take care of ourselves and each other.
We must first of all reduce our dependence on the global systems that are controlled by the power elite and are used to exploit and repress us. We must begin by becoming independent of their money system.
It is essential that we join together in solidarity to assure that everyone’s basic needs are taken care of. We must cooperate in building new structures that enable us to satisfy our basic needs together in our own communities. Most important amongst these new structures are trading networks that enable us to exchange our goods and services without borrowing from banks and without the use of political money. This is the pathway toward economic democracy, without which political democracy remains an elusive dream.–t.h.g.
Herman Daly is one of the few academic economists who talks sense. He has been a staunch advocate of sustainable development and steady-state economics. Here is an excerpt from his recent article. –t.h.g
Eight Fallacies about Growth
by Herman Daly
One thing the Democrats and Republicans will agree on in the current U.S. presidential campaign is that economic growth is our number one goal and is the basic solution to all problems. The idea that growth could conceivably cost more than it is worth at the margin, and therefore become uneconomic in the literal sense, will not be considered. But, aside from political denial, why do people (frequently economists) not understand that continuous growth of the economy (measured by either real GDP or resource throughput) could in theory, and probably has in fact, become uneconomic? What is it that confuses them?
Read the full article here.
Nobody can speak for a movement that is as inclusive and diverse as the Occupy Wall Street movement. We each speak for ourselves, but out of that can come shared values and ideals and, eventually, coherent action that will result in significant improvement in the situation for everyone.
But catch this—Fox News was out doing man-in-the street interviews about the Occupy Wall Street movement when they happened upon Jesse LaGreca who turned out to be a knowledgeable and articulate unofficial working class spokesperson. Fox never aired the interview but it has found its way onto the internet and is causing quite a stir. Here it is:
And watch this follow-up interview with Jesse on KIRO-FM: