Category Archives: Government

Sovereign or Slave? How perversion of the money power has decided the issue—until now!

As I indicated in my previous post, No democracy when government has the money power, E. C. Riegel, more than 75 years ago, explained, better than anyone else I’ve encountered, the nature of money, its fundamental function, and the history and consequences of its politicization, and outlined a way of transcending the perverse and dysfunctional system that we have lived under for far too long. His work is perhaps best summarized in his book, Private Enterprise Money, from which I quoted. I continue here with further quotes that elucidate the key points of sovereignty, money and government.

Riegel’s solution involved the organization of credit clearing circles that he called “Valun Exchanges” that would be joined together in networks for exchanging goods and services. He argues, as I do, that it is the individual person that is sovereign, not any king, emperor or government, and that the power to issue money, therefore, also resides in the individual. When we realize that money is really only short-term credit, it becomes clear that it is in our power as individuals to give it or withhold it as we go about our daily business of exchanging the value (goods and services) we produce and consume.

In Chapter 9 of his book, Riegel proposes that the Valun Exchanges be organized on a “state-wise” basis. He observes that:  “The sovereign power of the citizen rises to the state government; and from there it is delegated upward to the federal government, and downward to subdivisions. We are, first of all, citizens of our respective states; and this implies citizenship also in local and national governments.” p. 139

He then recounts the history of the union of the American colonies after their separation from British rule and argues that: “The advantage in abolishing this multiplicity of monies [of the various colonies] was obvious, but the implications involved in surrendering the money issuing power to the federal government was not comprehended. The gain to all in uniformity of money unit was visualized; the loss in sovereignty thereby suffered, was not.”  p. 140

From this point onward, I will let Riegel’s words speak for themselves. All page number refer to the printed edition.

“We now realize that the money power of the private citizen is in fact his sovereignty; and that in yielding it he yields his sovereignty. Thus the transferring of the money power from the states to the federal government was the transferring of the citizens’ sovereignty to the national government, and the reducing of the state to the status of a subordinate. p. 140

“The political money system implies that the citizen will abate his natural money issuing power, and make the criterion of his exchanges and the regulation of the money system entirely dependent upon the government that he recognizes as the money power. By making the federal government the sole money issuing power, the individual states transferred the fealty of their citizens to the national government, because they became thereby dependent upon its money power. The citizen having thus had his fealty transferred to the national  government—it was taken from the state governments—and the latter are now dismayed by the increase of federal power and the commensurate subordination of state power.”

“What has actually transpired is a reversal of the intent of the federal plan whereby the national government was to be dependent upon the states for grants of power. The national government, through its money power, is now supreme and in reality holds the state governments in subjection to it. Federal fiscal policy now determines the bounds of state sovereignty. It took many years to reveal this structural weakness because, in the earlier days of the federation, the economy depended more upon the private issuance of money through the banking system, and thus federal fiscal power was dormant. The policy of the federal government up to 1932 was to leave to the banks the function of supplying money. During the Jackson administration, with the abolishment of the United States Bank, government participation in money supply reached its lowest point—with the government confining itself to the mere minting of gold and silver coins at a seigniorage charge to any one who brought the metal to the mint.” pp. 140-141.

Money Power Is Sovereignty
The states, to recapture their independence and sovereignty, must look to their citizens who, in turn, must assert their sovereignty by exercising their inherent money power. It was right that the states should have surrendered their money power; but they should have surrendered it to their citizens, and not to another government. At the time the federation was formed the nature of the money power was not understood; and it was not realized that it is the essence of sovereignty. But we know now that it is and if we wish to preserve the federation and also home rule, we must now deal intelligently with the money power.

While the states have surrendered their money power, their citizens have not. The citizens have merely failed to exercise their natural powers against which there is no prohibition in either state or federal constitutions. This is not a political issue – requiring legislation or repeal of legislation, or constitutional amendments, or any official action – but it is, nevertheless, a profound political movement; because, as the people assert their money power, their natural intimacy with their state and local governments asserts itself – since there is no other power that can step between. Today, the federal government stands between the citizen and local government, and thus alienates him.

If our states are to develop their individuality and counter the stereotyping influence of a monetary dictatorship, if local government and private enterprise are to work out their natural virtues, if democracy is to prevail in business and government, and if our federal republican system is to survive, we must meet our problems by dealing with their fundamental causes – the political money system.”

To accomplish these broad and vital aims, the Governor or some other public official should take the leadership of this cause within his state. In the absence of this, leadership must be taken by private citizens. It offers an incomparable opportunity for public service.”

While the money issuing power is inherent in every man, it can be realized only by a pact among many. Therefore, the individual is helpless, and organized action is necessary. The method of organizing a Valun Exchange should be no different from organizing any other cooperative movement.” pp. 143-144.

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No democracy when government has the money power

Think for a moment about the basic necessities of life. One can live only a few minutes without air, a few days without water, and a few weeks without food. We also need shelter from the heat and cold, from rain and snow and sun. We need energy–gas, oil, electricity–to warm us when the weather is cold and to cool us when it is hot, to help us do our work and enable us to move about­.

And how do we acquire those things? Air is still freely available, although it may not always be clean or healthy to breathe. Water is increasingly not free, even if we draw it from the kitchen faucet, and all of those other necessities, we depend upon others to provide. But at every turn there is someone with an outstretched hand saying, “Pay me.” The point is that there is another element that we are utterly dependent upon–MONEY!

As Adam Smith observed long ago, “When the division of labor has been once thoroughly established, it is but a very small part of a man’s wants which the produce of his own labor can supply” (Wealth of Nations). That puts economic exchange and the devices we use to facilitate it at the center of human interaction. Money has become so familiar to us in our daily lives that we hardly even notice it, except when it is lacking. But our ignorance of the nature of money, where it comes from, and how it is created has cost us dearly both in terms of material comfort and increasingly in our loss of freedom.  

Economics and politics are inextricably linked; they are in fact a unitary system which early economists like Adam Smith, John Stuart Mill, and Jean-Jacques Rousseau recognized, using the term “political economy” to categorize their work. Economics as a separate discipline did not exist until about a hundred years ago when latter day academicians sought to cloak the fact behind a mask of mathematical rigor. But it cannot be denied that economic structures and policies have heretofore made implicit choices about who would be the winners and who would be the losers. The challenge before us today is to build political-economic systems that allow everyone to win, not just in terms of material comfort, but in terms of peace, harmony, dignity, and freedom. We cannot change politics without changing economics, and we cannot change economics without changing money.

In my own work I have often credited E. C. Riegel for much of my enlightenment on these matters. He said:

“We have been pursuing the illusion that by voting political ballots biennially and quadrenially, we controlled our affairs. While the government must beg us each two years for our political ballot, we beg the government every day for our economic ballot. Since we are dependent upon our government for our daily dollar ballot, there stands over our political democracy a monetary autocracy. Therefore, we are not democratic governors; we are economic subjects. … The process whereby parchment freedoms become sterile is quite simple. It begins with the fact that we need a constant money supply to effect our exchanges whereby we live. The supply is completely in the hands of government. We beseech the government to issue it. … Is not every public expenditure the result of pressure by some large or small segment of the citizenry? And are not these pressure groups impelled by the necessity of petitioning government since it is the only source of the economy’s life blood? How can we blame the government for spending and on the other hand, how can we blame those who invent schemes for spending, without which our economy would stagnate? It is the false concept of political money power that converts citizens into petitioners, and makes government a dispenser of patronage instead of a public servant. This power of patronage utterly destroys the democratic system of government–since the people cannot be both petitioners and rulers” (Private Enterprise Money (1944. pp. 78-79 in print edition).

Riegel devoted his life to showing not only how the political money system corrupts both economics and politics, but also how it can be transcended, a work that I have taken up and pursued over the past 40 years. My own books, lectures, interviews, and web posts have built upon, interpreted, and extended the works of E. C. Riegel, Henry George, Ralph Borsodi, Ulrich von Beckerath, Heinrich Ritterschausen, and many others. My latest book, The End of Money and the Future of Civilization, is a comprehensive treatment of money and politics and a guide to how to create effective exchange media that are independent of government, banks, and political money. Once we realize that money is credit, and that it is in our power to give or withhold it, we can take back control of the exchange process and our government.

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New Podcast Episode 9–Jose Francisco Garcia Mazcorro

Episode 9 A conversation with Jose Francisco Garcia Mazcorro

Jose Francisco Garcia Mazcorro (Pepe) (Born in July 1982), is a scientist and educator who from 2000 to 2005 studied Veterinary Medicine and, in 2011, received a PhD degree from Texas A&M University.

Upon his return to Mexico in 2012, Pepe and his wife, Alicia, who also holds a PhD from the same university, started a program they called “Free Science Classes.” Pepe currently spends most of his academic life working on various research projects related to the human and animal microbiome. He also has an interest in Social Philosophy and published a book on that subject in 2007.

In this podcast interview, Pepe describes his work of taking science directly to children, provides some insights into Mexico’s current political situation and the implications of the election in 2018 of President Andres Manuel Lopez Obrador (AMLO), and discusses the status of the COVID “pandemia” in Mexico, its consequences, and possible remedies to avoid an even more complicated scenario in the years ahead. You can learn more about Pepe and his work at his personal website athttps://sites.google.com/site/josefgarciamazcorro/home. Pepe also recommends this video about social distancing.


Newsletter — June 2020: Making sense of the Covid-19 “pandemic”

In this issue:

  • Facts about Covid-19, a report from Swiss Policy Research
  • Analysis of Crisis Management from the German Ministry of Interior
  • Perspectives on the pandemic, one nurse speaks out
  • Mass surveillance begins with kids: WIRED Magazine
  • The injection fraud–it’s not a vaccine: Catherine Austin Fitts
  • All Governments Lie: Oliver Stone
  • Meet Bill Gates: The Corbett Report
  • Coronavirus: It is governments not coronavirus which threatens our lives: Dr. Vernon Coleman
  • My (tentative) final thoughts

Because this is a long one I’ve posted only the list of contents. You can read the entire newsletter here.

If you’d like to be added to my mailing list to receive my newsletter directly, please fill out the subscription form below.

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Relocalization and Community Empowerment–How to get it done

You won’t want to miss this webinar with
GAYLE MCLAUGHLIN for a conversation on
How a Progressive Alliance Can Change Culture

Gayle McLaughlin was a two term Mayor of Richmond, CA and she is currently running for the Richmond City Council in 2020. Under her leadership as Mayor, Richmond increased the minimum wage to $15 an hour in 2008. Homicides were reduced by 70%, and the Richmond Chevron refinery was forced to pay $100 million dollars in additional taxes after a successful lawsuit that required payment for the environmental hazards and harm they caused to the community. She led the fight against foreclosures in Richmond. She co-founded the Richmond Progressive Alliance, which was the precursor to the California Progressive Alliance. As Mayor, she also oversaw the hiring of a new police chief who radically altered the police culture in their community by reorganizing the police force to one that worked with, instead against, the community. In 2016, she helped pass the first new rent control law to take effect in California in 30 years. Her book, Winning Richmond: How a Progressive Alliance Won City Hall, is available online. Gayle has never taken any corporate money in her campaigns and she has won every one thus far. Her enlightened leadership has altered Richmond but, as she says, there is much to be done to keep the progressive values and gains alive. Which is why she is running for the Richmond City Council again.

Gayle’s first book, Refinery Town: Big Oil, Big Money, and the Remaking of an American City, was published in 2017 with a foreword written by Bernie Sanders. In 2019, her political memoir, Winning Richmond: How a Progressive Alliance Won City Hall, is literally a how-to for radically changing city governments. In all of her campaigns for public office, she has never taken any money from corporations.

Friday, June 26 at 4:00 pm, Pacific Daylight Time.

Tickets: $20 General. * $15 for Praxis Members – Zoom link sent upon Registration. Click Here to Register. If you cannot afford a ticket or need a reduced fee, please Contact: info@praxispeace.org  

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Riding the Populist Wave

This, my latest article, points out that capitalists now admit that the system is “rigged” in their favor; it argues that Trump and Sanders represent two edges of the populist wave that is now dominating U.S. politics, that a Sanders win over Trump is entirely plausible, that the New Deal of FDR has  been systematically dismantled and needs to be reestablished, and that in the long run people will need to work together in communities to build systems and structures that can circumvent the rigged system.

Here is an excerpt, but I hope you’ll read the entire article.

There, the capitalists are admitting it–the system is rigged.

In his latest newsletter, financial advisor, John Mauldin, Co-Founder of Mauldin Economics, acknowledges that the system is rigged in favor of the wealthy and powerful, and against everyone else, including the shrinking middle-class. Mauldin says:

The “financialization” of the American economy has led to increasing income and wealth disparity. As much as it pains me to say it, the “system” really is rigged. Whatever the good intentions of the Federal Reserve in particular and the US government in general have been, it has distorted the economic feedback loops that balance a true market-based economic system. The fact is we already have “socialism” today. It’s not the socialism we feared in 1974. We have socialized the risks of capitalism, to the benefit of a small portion of the country, while a larger portion struggles.

So, Mauldin admits what has been obvious for a long time, that the U.S. economy is characterized by socialism for the rich ruling class, and dog-eat-dog competition for everyone else. He cites this fact as the main reason why political outsider Donald Trump was elected President in 2016 and why “socialist” Bernie Sanders might conceivably be elected President in 2020. I agree.

So, what do Trump and Sanders have in common?

As I see it, both are viewed by the electorate as “populist,” which ostensibly means anti-elite, Trump representing right-wing populism and Sanders left-wing populism. But, except for paying lip service to a plan to shift U.S. foreign policy away from the imperial belligerence of the deep state, Trump’s actions as President belie any anti-elite sentiment. In fact, it’s been quite the opposite.

What people want is something other than the globalist, interventionist, imperialist policies of the past several decades that have wasted enormous amounts of resources, killed hundreds of thousands of people, destroyed communities and nations, and caused political upheaval around the world. People want relief from the economic policies that have favored capital over labor by increasing capital mobility while shifting jobs from the U.S. to low wage countries especially in Asia, and at the same time reduced constraints on banks and corporations, enabling them to more fully exploit people and the environment.
More…

A version of the article was also published on Medium and republished at OpEd News.

Fasten your seat belts…

1/30/1981 President Reagan and David Stockman meeting on the economy in the Oval Office

In his current subscription pitch and announcement for his new book, PEAK TRUMP: The Undrainable Swamp And The Fantasy Of MAGA, David Stockman lays out some startling facts, provides a cogent analysis, and makes some dire predictions. As President Ronald Reagan’s Budget Director and long-time political insider, Stockman should be heeded. Here are some excerpts:

“We are in a whole new ball game. The Deep State, the House Dems, the Mueller hit squad and the mainstream media are all going in for the kill.

“They are determined to take the Donald down and preserve the rule of the bipartisan establishment in favor of Empire abroad and Big Government, massive debt and Fed-fueled Bubble Finance at home.

“At the same time, the Donald is now practically handing them his political head on a platter. That’s because he has bombastically embraced the “big, fat, ugly bubble” that he so accurately harpooned during the campaign.

“But that bubble has now reached a fatal triple-top and is fixing to implode, and to take the American economy and Trump’s presidency down with it.”

Stockman says, “We are heading for the double whammy of a political/constitutional crisis and a thundering financial breakdown at the same time.” He argues that it was the failure of “the Washington/Wall Street consensus” that led to Trump’s victory in 2016, and that actions of the Federal Reserve have caused a massive asset bubble along with huge disparities of incomes and wealth.

He goes on to say that “just because Donald Trump targeted the symptoms correctly [during his campaign] that doesn’t mean he had a plan to fix the American economy or the skills and know-how to move the turgid, essentially paralyzed machinery of the Federal government.” Stockman  characterizes Trump as “a political flyweight, megalomaniacal incompetent and bile-ridden bully who stumbled into the Oval Office against all odds.” He decries the massive growth of government debt over the past four decades and boldly asserts that recession will hit the US economy before November 2020, and that “Wall Street, the US economy and the Donald’s fantasy of MAGA will come tumbling down with it.” Whether or not his timing is correct, it is clear that a political and economic shipwreck is just ahead.

Stockman decries the “bipartisan ruling class” which is “in favor of permanent war, unchained entitlements, fiscal incontinence, unsustainable debt-fueled household spending, rampant corporate financial engineering and Keynesian monetary repression and “wealth effects” based central banking that lies at the roots of our current economic malaise,” and referring to the Mueller Russiagate investigation and subsequent impeachment hearings, Stockman says, “the Donald’s fluke elevation to the Oval Office has finally caused the Deep State to come out of hiding and bare its fangs against American democracy itself.”

Stockman criticizes the Fed for “dithering” and delaying “normalization,” by which he presumably means raising interest rates and ending Fed purchases of government bonds. He also calls for “fiscal rectitude” (balanced budgets) on the part of the government, something that even his beloved Ronald Reagan was unable to pull off.

But what Stockman (and everyone else) fails to realize is that, under the interest-based debt-money regime that has prevailed throughout the modern era, it is impossible for national governments to consistently balance their budgets. Here’s why. Since money is created when banks make loans, and since interest is charged on those loans, aggregate debt increases simply with the passage of time. If growth in the money supply does not keep up with debt growth, many debtors will default and the economy will sink into recession. Thus, the banking system must find ways to keep people and corporation borrowing ever greater amounts of money. Over my lifetime I’ve seen banks roll out a succession of creative schemes. Starting with the liberalization of consumer credit following World War II (“Buy now; pay later”), then the widespread issuance of credit cards, then the introduction of “student loans,” then the easing of requirements for people to buy real estate, banks have gotten people to borrow more and more.

Then, when the private sector is all “loaned up” and cannot take on additional debt, the government must step in as “borrower of last resort.” By deficit spending, financed through the issuance of bonds, the national government, with the help of banks that buy those bonds, the money supply is expanded. (When banks buy government bonds they are making a loan to the government). And when all available funds have been sucked up, the Fed must step in as “lender of last resort” to itself buy up additional government bonds while keeping interest rates at acceptable levels. That approach, called “quantitative easing,” is what saved the global system of money and banking from total collapse in 2008 after the housing bubble burst. Thus, the government and the banking establishment are locked together in a deadly embrace and “dance of death” that is spiraling out of control.

It may very well end with a major decline and long drawn out recovery, as Stockman is predicting, but unless a new interest-free money system is implemented after the wreckage is cleared, the ultimate outcome may simply be another round of ever more extreme boom-bust cycles and political chaos.

The good news is that there are credit money innovations waiting in the wings, and now emerging, that can be rolled out, replicated, and networked together to usher in a “Butterfly Economy” and new world order of peace, justice, and human unity. For details about what the Butterfly Economy might look like, and how we might get there, see my video, The Butterfly Economy: How Communities are Building a New World From the Bottom Up, and my article, Reclaiming the Credit Commons: Towards a Butterfly Society. — t.h.g.

Politics and the people

I’ve rarely had any enthusiasm for any candidate for federal political office, Democrat or Republican, because I know they have all be bought off by the power elite whose agenda is to dominate and exploit at any cost.

What I have been passionate about is a movement to promote social justice, economic equity, personal freedom, ecological restoration, community empowerment, peaceful relations with all, and human unity.

Surprisingly, in the current Presidential campaign, a candidate has emerged who seems to have the courage and ability to lead the political arm of such a movement. This recent message from Tulsi Gabbard speaks for itself:

This desperate coordinated campaign by the establishment elite and its backers in the corporate media can only mean one thing: They’re afraid of us. Afraid of the clear evidence that our movement is growing stronger every day, our message getting louder and harder to ignore:

The New York Times, CNN, the DNC, Hillary Clinton, her proxies; They’ve shown they’re afraid of our movement to dismantle the for-profit American war machine, to finally make Big Pharma pay for its predatory policies, to decriminalize marijuana and reform our broken criminal justice system, to make polluters pay for the devastation they’ve caused to our planet, our air, our water. 

They’re afraid of a Party reform agenda that will root out the corruption and rot, and re-establish the Democratic Party as the big tent party that looks out for the little guys. The Party that is truly of, by and for the people.

Are you up for it? 

Neither Tulsi nor anyone else can be our “savior.” It is still up to “we the people” to save ourselves, but part of that involves promoting a standard bearer who expresses our needs and desires and will work to implement policies that promote the common good.

Donald Trump promised to do a lot for the people, but has delivered very little. In fact, he has done much to damage us further. While he has made some moves to shift US foreign policy away from endless regime-change wars and covert interventions, his actions have been erratic and mutually-contradictory. His tax policies have increased income and wealth disparities, his energy policies have further damaged the environment and ecological balance, his immigration policies have done nothing to address the root cause of the refugee crisis, his trade policies, while seemingly well-intended, have damaged many American businesses, especially the small and medium sized enterprises he purports to champion.  

We can do better. We need a leader who can unify the people in common cause. I think Tulsi Gabbard is that leader.

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My latest interview on Ellen Brown’s podcast, It’s Our Money

In Ellen’s October 10 podcast, on which I was the featured guest, I argue that our best hope for escaping the tyranny of the global banking cartel lies in creating a decentralized network of exchange in which credit is locally controlled and allocated based on personal relationships and the productive capacity of community economies (starting at 27:25). This episode begins with a report by David Jette of the California Public Banking Alliance on the landmark public banking legislation that was recently passed into law in California. David describes what this act enables and the long and arduous process of getting it passed.

https://www.podbean.com/eu/pb-tuza2-c2cf19

2019 September Newsletter

Contents

  • Website improvements
  • Recent posts
  • Who owns the world
  • The Secrets of Silicon Valley: What Big Tech Doesn’t Want You to Know

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Website improvements
We’ve recently made some major improvements to our websites.

  1. Our WordPress service on BeyondMoney.net has been upgraded to a paid “premium” subscription, so viewers will no longer have to put up with the ads that WordPress inserts into all “free” sites.
  2. Our Beyond Money Podcast page has been redesigned. We hope visitors will find it much more appealing and user friendly.
  3. Important case studies in exchange alternatives have long been resident on our other website, ReinventingMoney.com. These pages have been revised and the link has been added to the menu at BeyondMoney.net to give them greater exposure.

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Recent posts
New podcast episode with John Attridge
In this episode, we speak with John Attridge, CEO of BBX-UK and Ireland, a reciprocal trade community which is part of the BBX network of trade exchanges that spans 14 countries and together service more than 90,000 customers.

The empire vs. journalism and free speech
John Pilger delivers a warning on behalf of Julian Assange who continues to be persecuted for exposing crimes committed by high government officials: “Speak up now,” Pilger said, or face “the silence of a new kind of tyranny.”

Make America sane again
As in the presidential primary of 2016, The Democratic National Committee (DNC) is again trying to tilt the contest to favor its anointed ones. Likewise, other institutions of the “establishment,” like Google, are imposing obstacles in the way of candidates who are challenging the military-industrial-banking-corporate complex (Tulsi Gabbard, Democratic Presidential Candidate, Sues Google for $50 Million). Now is the time for the American people to stand up and use their power to challenge the political establishment…

Read more here.