Monthly Archives: July 2010

The Geography of a Recession-Unemployment by County

This animated map of the United States shows the growing unemployment levels since 2007.

The financial reforms will fail!

It seems that everything the government does to fix the economy only makes matters worse. Why? Because they are trying to sustain a moribund system of money, banking, and finance. The recent passage of a “financial reform” measure by Congress, while hailed as a measure to prevent a recurrence of the abuses of the recent past, will do nothing of the kind. In fact, it will enable them to continue and will further strengthen the huge financial institutions that have been robbing the American people.

Peter Schiff has a better understanding of the situation than most financial pundits. While even he does not seem to get quite to the root of what ails our economy and our society, his insights go deeper than most.  He offers three reasons why the new law will fail do achieve its stated purpose:

1. The bill doesn’t get to the root causes of the crisis.

2. The law fails to end ‘Too Big to Fail.’

3. More regulation means higher costs for smaller financial services firms, reducing competition.

He explains this in this brief video.

I have pointed out in my books and writings that the very nature of the money creation process is at fault. The creation of money by banks on the basis of interest-bearing debt creates a “debt imperative,” which in turn creates an economic “growth imperative.” Since the physical limits to growth have been reached on planet Earth, this money system cannot be sustained, yet every action by the governments of the developed nations attempts to do just that.

The crisis will continue to deepen until people create parallel decentralized systems of exchange (money) and finance that enhance the vitality of their communities and local economies. –t.h.g.

Bailout tab hits $3.7 trillion

Reuters reports:

Increased housing commitments swelled U.S. taxpayers’ total support for the financial system by $700 billion in the past year to around $3.7 trillion, a government watchdog said on Wednesday. The Special Inspector General for the Troubled Asset Relief Program said the increase was due largely to the government’s pledges to supply capital to Fannie Mae (FNMA.OB) and Freddie Mac (FMCC.OB) and to guarantee more mortgages to the support the housing market. Increased guarantees for loans backed by the Federal Housing Administration, the Government National Mortgage Association and the Veterans administration increased the government’s commitments by $512.4 billion alone in the year to June 30, according to the report. “Indeed, the current outstanding balance of overall Federal support for the nation’s financial system…has actually increased more than 23% over the past year, from approximately $3.0 trillion to $3.7 trillion — the equivalent of a fully deployed TARP program — largely without congressional action, even as the banking crisis has, by most measures, abated from its most acute phases,” the TARP inspector general, Neil Barofsky, wrote in the report. The total includes Federal Reserve programs and a myriad of asset guarantees, including Federal Deposit Insurance Corp. protection for bank deposits. The increased government commitments more than offset about a $300 billion decline in the U.S. Treasury’s TARP commitments in the past year as programs have closed and banks have repaid taxpayer funds….  More…

This pretty much explains the global debt situation

Who Owns You?-Debt Bondage and the Structure of Financial Empire

Here is a video by Damon Vrabel that provides an excellent description of our current predicament and the system that dominates our lives. The series contains 6 lessons divided into 12 segments and pretty well explains many of the points that I’ve been trying get across about the money system and the power structure. It dispels the myth that ours is a government by the people and for the people. In reality, we, and all our governmental entities are in a state of debt bondage. Who are we in bondage to? Watch it and find out.

The author’s solutions, which are presented in Lesson 6, are well intended and in the right direction, but he seems to have a mistaken notion that sovereignty resides in the national government. I take issue with his advocacy of the “greenback solution” (, but aside from that, I’m in close agreement with everything he says.

This series takes about 2 hours to watch, but if you don’t have time to watch it all, or if you are already somewhat knowledgeable about these matters you should watch at least Lessons 1 and 6.

For some reason the website Renaissance 2.0 is no longer available.

I hope everyone will watch this series and spread the word to your networks.–t.h.g.

P.S. And if you can stand coarse language and the bitter truth, watch George Carlin explain it.

Demurrage: is it a good idea for a local currency or exchange system?

I’ve added a new monograph on the subject of demurrage to this site. You’ll find it in the sidebar to the right under Resources: Monographs: Demurrage: is it a good idea for a local currency or exchange system?

Or click here.