Here is a comment I posted in response to an article, Donald Trump and the Ghost of Christopher Lasch: America’s yeoman class revolts, that appears in The American Conservative. –t.h.g.
Yes, there is a yeoman class revolt, but the characterization of the elite as “liberal” is in error. The elite class spans the socio-political spectrum. They have a hidden agenda which they advance by pandering to the sentiments of both social liberals (mainly by Democratic politicians) and social conservatives (mainly by Republican politicians), but both parties have been moving us inexorably toward a “new world order” that is anti-democratic and neo-feudal which concentrates ever more power and wealth in their own hands.
Their primary instrument of control is the global system of money, banking, and finance which they have constructed over a long period of time without any public debate, and with the help of politicians, academic economists, journalists, and others whom they have invited to the table to share the spoils.
Since the debt crisis of 2008, Americans of all classes and ideologies have finally begun to wake up to the facts that the game is rigged against them and that they have been manipulated and exploited by the Wall Street-Washington nexus. The next American revolution will happen when liberals and conservatives, Republicans and Democrats, Americans of all religions and races, stop being seduced by “hot-button” rhetoric and come to realize what their common interests are and are able to work in harmony toward the common good
Thomas H. Greco, Jr.
Here is my comment on a recent article titled Krugman’s Craziness that appeared in the New York Sun. –t.h.g.
Very few people today, including prize-winning economists, possess a deep knowledge of the fundamental principles of reciprocal exchange, and most of those who do are committed to maintaining the global interest-based, debt-money regime that enables an elite few to control economies and governments worldwide.
In the wake of the 2008 financial meltdown and the ongoing economic crisis, more and more people are waking up to the fact that there is something seriously wrong with our systems of money, banking, and finance, but remain mystified by it and have no idea what to do about it.
Many are calling for reform of the system via the political process, and most reformers want a return to the gold standard and favor a government monopoly over the issuance of money. Clearly, new legislation is needed to reverse the trend toward ever greater centralization of power and concentration of wealth, but such measures have no hope of passing into law so long as the “money power” is able to buy politicians wholesale. Further, since money is a human contrivance that is supposed to facilitate the exchange of value (like goods, services, and various financial claims), people should be free to use whatever payment media they find mutually agreeable. Rather than monopoly of money, either bank-controlled or government-controlled, we need competition in currency. Let us have more freedom, not less.
There are solid precedents that prove the effectiveness of private and community currencies, as well as direct clearing of credits among buyers and sellers, a process that has the potential to make money as we’ve known it obsolete. Private initiative is presently bringing to market new and creative mechanisms of exchange and finance that have the power to bring about economic and financial stability, social harmony and a dignified life for all.
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Bernie has it right in trying to curb the enormous power of the banking establishment. As I’ve said many times, “Whoever controls the creation of money and the allocation of credit controls everything.” Bernie doesn’t go quite far enough but what he proposes is a good start. A recent article, Curbing the Influence of Big Banks: 3 Reforms proposed by Sanders, by Deena Zaidi outlines the Sanders plan:
- Break up the big banks so that no bank is “too big to fail.”
- Reinstating the Glass-Steagall Act which for decades prevented “investment banks” from combining with “commercial banks.”
- Reducing conflicts of interest at the Fed.
Read the full article here.
Here’s a short and sweet video that reports on court case (Daly v First National Bank of Montgomery) in which it was clearly shown how banks create money by making loans, and the illegitimacy of that process.
And if you are facing foreclosure on your mortgage, the three magic words that might forestall the action are “produce the note.” This Fox news report explains it.
In a landslide vote Texas lawmakers approved (by a margin of 140 to 4 in the Texas House and 27 to 4 in the state Senate) a bill to establish a gold depository bank. The bill was signed into law in mid-June by Republican Governor Greg Abbott.
In this interview Texas State Representative Giovanni Capriglione, author of the bill explains how this new law came into being and what it does.
The full interview can be heard here.
This is a surprising turn of events that is reminiscent of the private NCBA (National Commodity and Barter Association), a gold depository that was harassed and finally put out of business by government thirty years ago.
This bank, if it ever comes into being under the aegis of the Texas state government, will not so easily be quashed by the feds, After all, you “don’t mess with Texas.” It could lead to a payment system that is independent of the Federal Reserve and provide depositors with some protection against the continuing inflation of the US dollar.
But the gold market is very much manipulated and controlled by the big holders, the various central banks and national governments around the world. It would be better to hold an assortment of basic commodities on deposit to better assure that depositors’ purchasing power will be maintained. Better yet, state governments should support the creation of credit clearing exchanges that enable buyers and sellers to trade with one another without using money at all but simply offset each trader’s payments for purchases against their receipts from sales. In that case, the commodity assortment need only be used to define a unit for denominating members’ account balances. This and other innovative approaches to exchange are all explained .in my books, especially The End of Money and the Future of Civilization, and in my various interviews and presentations on this website.
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This is a question I answered more than a quarter century ago in Part I of my book, Money and Debt: A Solution to the Global Crisis. It is a question that gets scant attention from politicians and economists who are willing to speak only about the need for perpetual economic growth and keeping the government debt at “manageable” levels, never asking why government debt is necessary or how it might be eliminated.
When I first undertook to answer this question, the debt crisis was already well underway and global in scope. Since then the situation has become more critical with debt levels reaching astronomical levels.
What I said in 1990 began with this:
The whole world today seems to be awash in a sea of debt which threatens to drown us all. Many Third World countries, despite their huge increases in production for export, are unable to pay even the interest due on their accumulated indebtedness to Western banks and governments. In the U. S., the levels of both public (government) and private debt are increasing at alarming rates. The Federal budget deficits of recent years far exceed anything thought possible just a decade ago. Why is this happening and why is it a problem? In order to understand that, one must first understand some financial facts of life.
Here are the essential points of my argument:
- Almost all of the money in every country is created by commercial banks when they make loans either to the private sector or to governments (by purchasing government bonds, notes, etc.),
- Money is extinguished when loan principal is repaid,
- The interest that banks charge on these loans causes the amount owed to grow as time passes,
- Causing the aggregate amount owed to banks to always exceed the supply of money in circulation,
- Requiring that banks make additional loans to keep the supply of money in circulation from falling behind the amounts needed for existing loans to be “serviced” (repayment of part of the principal plus the interest due) in order to avoid a cascade of defaults and economic depression,
- And that this “debt imperative” that is built into the global money system is the driver of the economic “growth imperative” that results in superfluous economic output and its attendant depletion of physical resources, despoliation of the environment, increasing disparities in income and wealth distribution, and many other problems that plague modern civilization.
- That physical limits to economic output on a finite planet make this money system unsustainable over the long term.
- That there are practical limits to the amount of debt that the private sector is able or willing to incur.
- That chronic government budget deficits are therefore a political expedient that is necessary to keep this flawed system from collapsing as governments assume the role of “borrower of last resort.”
- That politicians are quite willing that governments play this role since it gives them the power to take much more value out of the economy than the revenues available by means of overt taxation.
- That bankers, for their part, by monopolizing the allocation of credit in the economy and charging interest on it, are able to enrich themselves and exercise tremendous power over the political process making a sham of democratic government.
The empirical evidence strongly supports my analysis. You only need to look at charts showing the growth of debt over time to see it growing at an accelerating rate (geometrically), a pattern that reflects the compound interest function that is an inherent feature of our global political money system.
You can read my original 1989 exposition of these points at Money and Debt: a Solution to the Global Crisis, Part I, and their subsequent elaboration in my latest book, The End of Money and the Future of Civilization, https://beyondmoney.net/the-end-of-money-and-the-future-of-civilization/.
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