Monthly Archives: May 2019

Big Brother is Slowly Killing Julian Assange

This is the sorry state of affairs in today’s world. George Orwell had it right; you can’t defy Big Brother without facing dire consequences. The following article by Daniel McAdams of the Ron Paul Institute for Peace and Prosperity describes what is happening to Julian Assange at the hands of the global empire and what the ultimate outcome is likely to be.

Hunting Assange

Dear Friends of the Ron Paul Institute:

As US Constitutional scholar and George Washington University Law School professor Jonathan Turley wrote this week, the US Attorney General is completely wrong in his efforts to prosecute Wikileaks publisher Julian Assange under the Espionage Act. “The use of the Espionage Act strikes at the heart of the First Amendment,” wrote Turley, who noted with approval that several prosecutors in the Attorney General’s office shared his view that the indictment of Assange on espionage charges is a terrible idea.

RPI Board Member Judge Andrew Napolitano hits the nail squarely on the head: 

Why was Assange indicted? Government killers are a mob, and mobs love anonymity. Assange assaulted their love by ending that anonymity. When the government kills and rejoices and lies about it in our names, we have a right to know of its behavior. Democracies spy on us all, yet they persist in punishing, to the ends of the earth, those who dare to shine a light upon them. Tyrannies do the same.

Amen, Judge!

What Assange has done – published leaked information undoubtedly in the public interest regarding probable criminal activities by the US government – is virtually indistinguishable from what mainstream media outlets do on a regular basis. In fact, if Assange is to be imprisoned as the publisher of information given him by NSA whistleblower Chelsea Manning, what’s to stop the publishers of the New York Times and Washington Post from being prosecuted for printing the exact same information?

If it becomes criminal to expose the criminality of our own government, then our days as a self-governing society are well and truly gone. We all become subjects to an authoritarian “deep state” rather than citizens of a republic of constitutionally limited state authority.

And that doesn’t even scratch the surface of the idiocy of pursuing Assange for the “crime” of journalism. How does it make any sense that Julian Assange – an Australian – is being charged with treason against the United States, to which he owes no allegiance nor has he signed any form of non-disclosure agreement?

The US government may believe that it runs the world through its global military empire, but the assumption that non-Americans operating outside of the United States are to be subject to US laws regulating freedom of the press is to open a Pandora’s box that cannot end well.

Should American journalists operating in Europe, for example, be expected to adhere to China’s legal press regulation framework? Should the publisher of the Washington Post bone up on the Iranian legal system lest he be nabbed in the street somewhere in violation of Tehran’s media laws?

But what if Attorney General Barr and all the rest of the “permanent state” or “national security state” or whatever we choose to call it already knows that prosecuting Assange is going to be a wrenching and possibly ultimately futile endeavor? What if the goal is not to make him disappear in a supermax prison for the rest of his life but to actually just make him…disappear?

We have learned through Assange’s attorneys this week that he is so sick he cannot even have a normal conversation. He is reportedly “gravely ill” and has been moved to the hospital ward at the UK’s gulag-like Belmarsh prison. What if Assange is getting the “Milosevic treatment” – held in appalling conditions waiting for a judicial decision while being denied adequate medical treatment and in the end passing away before the case falls apart.

That’s just what happened to Miloevic at the Hague. He was held in inhuman conditions for years while they prepared his trial. He did not receive needed medical care  and in the end he died before his trial – a trial which he was eventually exonerated.

So in the end it did not matter that the authorities could not prove their case. The case was closed. Permanently. 

How could a dead Assange possibly help the national security statists in their efforts to keep us supine subjects, never questioning endless war and encroachment on our civil liberties? Because after Assange is dispensed with, who is going to take any risks to expose the crimes committed in our names and with our money? As I said in today’s Liberty Report, we will only be left with the mainstream media state stenographers, whose publication of national security leaks mostly consists of bolstering or hampering rivals inside the deep state apparatus. Rarely if ever do they actually expose the deep state for what it is – a murderous, lying, authoritarian mob that seeks total control over all of us.

That is why Assange in a recent handwritten note urged others to continue his work exposing such evil. “Everyone else must take my place,” he pleaded. But when the state has his ruined body on display, who would dare step up? 

That is how they win. And we cannot let that happen. We must all do what we can to draw attention to the plight of Assange and the attack on our freedom of information. Our future and the future of coming generations depends on it!

Source: https://mailchi.mp/ronpaulinstitute/is-war-popular-rpi-19th-april-update-114409?e=01487c06b3

Advertisements

Liquidity and Monetization-a monograph

By Thomas H. Greco, Jr. Revised, May 20, 2019

Liquidity

Quite simply, liquidity is the ability to pay.

We are all accustomed to paying for purchases with legal tender money. We do that in one of several ways, either by handing over paper notes or coins, by using a debit card that debits our bank or credit union account, or by using a credit card by which a bank temporarily advances the amount we need to make the purchase. In every case, it is bank-created money that is being rendered.

Banks are supposed to provide liquidity by monetizing the value-added by local enterprises. They do this by making loans to finance working capital and business expansions and development. But banking has become increasingly centralized as local banks have been taken over by large bank holding companies that have less concern for local economies and favor lower risk loans made to large corporations and government entities that are remote from the local community. Thus, money is lavished on central governments that use much of it to make war and build weapons far in excess of what is needed to provide security, and to enable the continual expansion of mega-corporations that reduce market competition and concentrate wealth in ever fewer hands.

But there are still some locally owned and managed banks. You can find some by going to Move Your Money project. Still, that is only an easy first step. Even those banks must invest much of their resources in government bills and bonds and large corporate securities in order to survive in a milieu of manipulated markets and a regulatory environment that tilts in that direction. Further, since banks create money by making loans at interest, the entire system forces continual growth of debt, artificial scarcity of money, and environmental destruction.

What must ultimately happen is described in my book, The End of Money and the Future of Civilization. A proven approach is the organization of local credit clearing exchanges that enable businesses themselves to cooperate in collectively monetizing their own value-added, without the burden of interest and without the growth imperative. This is already happening at both the grassroots and commercial levels, but more optimal exchange designs need to be implemented and the entire process needs to be scaled up by networking trade exchanges together.

Monetization

Quite simply, monetization is the process by which value claims are converted into liquid or spendable form, i.e., to a device we commonly call “money.”

Def. 1. Monetization is the process of converting the value of an illiquid asset to a liquid form, i.e., a form that can be used as a payment medium (money).

Def. 2. Monetization is the process of creating money on the basis of some foundation value.

Example: A bank or other entity can create credit instruments, like notes, “deposits,” or account balances on the basis of an asset upon which it has a claim. For example, when a bank makes a loan against a business’ inventories it creates money which can then be spent into circulation by the borrower. That money then circulates through the economy and presumably becomes available to consumers to purchase the inventory upon which that money was created. In a sense, that money is a virtual representation of the value of goods (or services) that are available for purchase in the market.

However, banks also often monetize the value of real estate or other assets that are not on the market. A bank’s mortgage claim against a property allows the bank to create an amount of money that is some portion of the presumed market value of that property. Monetization of such assets can cause general price inflation.

A peculiar and destructive aspect of the present money system is the monetization of debts, particularly the debts of the central government. The monetization of existing debts puts more money into the economy without putting more goods and services into the economy. This is a major cause of price inflation. When economists speak of debt monetization, they are referring to the process by which central banks add to the money supply by purchasing government bonds. In the United States, for example, when the Federal Reserve Banks wish to expand the amount of money in circulation, the Federal Open Market Committee (FOMC) will buy U.S. government bonds on the open market.

In brief, the process is as follows:
The FOMC purchases government bonds on the open market. It pays for them by issuing a check to the seller. This check is drawn against no funds. In other words, the Fed creates the money needed to pay for the bonds simply by making an entry on its books. But this is not the end of the monetization process. This new, so-called, high powered money enters the banking system when the bond seller deposits the funds in a bank. This provides the commercial banks with new reserves upon which the banks can expand their own lending, thus creating even more money. If the bank then buys a government bond, then still more government debt is monetized. This is a primary cause of price inflation.

Commercial banks also create money when they make loans to individuals or businesses, but these loans are usually secured by the pledge of some collateral assets—a car, a house, or some other valuable asset owned by the borrower. Thus, the banks monetize the value of that collateral, i.e., they transform the value of collateral assets into spendable form, i.e., money. As borrowers repay their bank loans, the portion of the money payment that is applied to the loan principal is extinguished. Thus money is created when banks make “loans,” and money is extinguished when loan principal is repaid.

Monetization of value outside of banks

In non-bank exchange mechanisms, such as local currencies and mutual credit systems, the participants, apart from any bank involvement, empower themselves to monetize their own labor, skills, and inventories. They can also monetize the value of their physical assets. Established enterprises have plenty of assets that can be monetized. These include working capital (inventories of merchandise or raw materials and accounts receivable), as well as fixed capital (plant and equipment like buildings and machinery). Working capital turns over in the market in the short term, while fixed capital produces marketable goods and services over a longer time period.

A fundamental question that arises is, “which assets are appropriate for monetization and which are not?” Or, perhaps a better question is, how can each type of asset be monetized so as to provide the necessary liquidity for consumption while not adversely affecting the value of the currency or the general level of market prices?

It is better to issue a community currency by monetizing the value of existing inventories and service capabilities than it is to monetize the value of fixed assets because a loan on the former is self-liquidating. A self-liquidating loan is “a type of short- or intermediate-term credit that is repaid with money generated by the assets it is used to purchase. The repayment schedule and maturity of a self-liquidating loan are designed to coincide with the timing of the assets’ income generation. These loans are intended to finance purchases that will quickly and reliably generate cash,” [i] or in the case of a credit clearing exchange, the credit that was advanced will generate sales sufficient to offset it.

Credit Money vs. Commodity Money

If only commodities are used as money, then there will always be a limited supply of money and it must circulate ever faster to mediate a growing number of desired transactions. But credit money is unlimited in supply. It can safely expand in relation to the amount of goods and services that are available to be exchanged. When lines of credit are based on historical and prospective sales, then there need never be any shortage of exchange media (credit).

We need to stop thinking of money as a THING. In a credit clearing exchange, the quantity theory of money does not hold. I show this in Chapter 12 of The End of Money and the Future of Civilization, pp. 132-133. As the example illustrates, the amount of outstanding credit (the “money” supply) can even go to zero at times. It matters not, since lines of credit are prearranged and can be drawn upon as needed to make new purchases, thus new credit money is created in the process.

#     #     #


[i] A self-liquidating loan is a form of short- or intermediate-term credit that is repaid with money generated by the assets it is used to purchase. The repayment schedule and maturity of a self-liquidating loan are timed to coincide with when the assets are expected to produce income. These loans are intended to finance purchases that will quickly and reliably generate cash. http://www.investopedia.com/terms/s/self-liquidating-loan.asp.

___________________________

This monograph can be found on this site here.
The PDF file can be downloaded here.
The PDF file en Espanol can be downloaded here.

Greece and the Global Debt Crisis

Greece and the Global Debt Crisis
Thomas H. Greco, Jr.

ABSTRACT

The Greek debt crisis is emblematic of a more general, decades-long pattern of economic exploitation and reactionary politics that threatens not only the European Union but the stability of the global financial infrastructure and Western democratic civilization. The situation calls for a different form of globalization, not one that is dominated by transnational banks and corporations, but one that is built upon local self-determination and self-reliance, and based on local and domestic control of money, credit, and finance. Greece (and other debtor countries) can recover a measure of sovereignty and rebuild its economy by combining “debt triage” with public and private actions for creating domestic liquidity.

            In the summer of 1977, I first ventured abroad from North America on a journey to explore ancient civilizations, cultures, and religions, and to experience contemporary life in Egypt, Israel, and Greece. During my six-week odyssey, I was able to visit the Pyramids, amble over the Holy Land, and visit the temple ruins of Athens and Delphi.

At one point while in Cairo I came upon a scene that greatly troubled me. There was a small burro hitched to an enormous cart that was laden to the hilt with onions. I felt nauseous as I watched the poor animal lying on its side being flogged by a man in a vain effort to rouse it to the task of moving what seemed to be an impossible load. As a stranger in a strange land, I felt helpless to intervene and quickly moved away. I often wonder what might have been the ultimate outcome, but in my imagination I see the man with the whip standing over the lifeless body of that animal lying in the street, and weeping in worry and frustration.

Now, when I contemplate Greece’s current predicament, that image comes to mind. I see Greece as that beaten and dying animal, overburdened with debt that is beyond its capacity to service, and being flogged by its creditors in a vain attempt to get it to pay up. In my mind’s eye I see a future in which the dead carcass of Greece is being carved up and distributed amongst the creditor institutions. In actuality, Greece will survive, but under new (foreign) management, as she is forced to sell off her assets at fire-sale prices.

In the eyes of the Germans and other creditors, represented by the so-called “troika” institutions (the European Commission, the European Central Bank, and the International Monetary Fund), the Greek people are lazy freeloaders who have been living “high on the hog” at their expense, and who now balk at repaying what they borrowed.

But there is another side to the story that paints a different picture, and even if there is a bit of truth in that characterization, what is there to be gained by creditors insisting upon their “pound of flesh”? As civilization has advanced, debtor prisons have been eliminated and bankruptcy laws have been instituted to protect people and companies from creditors who insist upon collecting more than debtors, for whatever reason, are able to pay. Why can’t nations be afforded the same considerations?

First of all, it was not the Greek people who did the borrowing, it was a series of Greek governments that were either corrupted, coerced, or seduced into taking on a series of debts that were increasingly burdensome. Greece was lured into the debt trap from which it seems impossible to escape. Ellen Brown has summarized in her article, The Greek Coup: Liquidity as a Weapon of Coercion, some of the many moves that were made to ensnare the Greek government, and by extension, the Greek people.  … more.

To read my prescriptions and the full article, click here. The article is excerpted from the book, Rebuilding after Collapse: Political Structures for Creative Response to the Ecological Crisis, edited by John Culp. –t.h.g.