Category Archives: Government

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.

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

Why Central Banks?

I have long argued that the interest-based, debt-money, central banking regime is both dysfunctional and destructive, and advocated for the decentralization of control over credit and the creation of exchange alternatives that use privately issued currencies and direct clearing of accounts among buyers and sellers.

There is a considerable body of literature that makes the case for free money and free banking, most of which has been ignored. These ideas have been overwhelmed by the economic and financial orthodoxy which stands in support of the political status quo which centralizes power and concentrates wealth.

For governments, central banks serve as “lenders of last resort,” enabling deficit spending through their purchase of government bonds and manipulation of interest rates, while for the banking cartel, government serves as “borrower of last resort,” sustaining their privilege of lending money into circulation and charging interest on it. Whenever this unsustainable system threatens to implode (as it did in the crisis of 2008), the government steps in to take bad (private) debts off the bankers’ hands and place them on the shoulders of the citizens (“bail-outs”). When the next bubble reaches its climax, we will likely see another round of “quantitative easing,” but when that proves to be inadequate, we will likely see some combination of inflation and outright asset confiscation known as “bail-ins” (partial seizure of bank balances).

In his recent review, Leonidas Zelmanovitz, highlights the main points in Vera Smith’s book, The Rationale of Central Banking and the Free Banking Alternative, which was published in 1936. Paraphrasing Smith, Zelmanovitz concludes that [Keynsian policies are] “not necessary to solve the problems they are purported to solve; most likely, they are part of the cause of the problem. Furthermore, there is an alternative, and that alternative is free banking,.” and, ” You can have good money without central banking and central banking does not guarantee good money.” You can read the entire review on the EconLib website.

Another classic source on free banking is Henry Meulen‘s, Free Banking (London: Macmillan, 1934). Free download available here. I will provide some excerpts from that source in a future post.


Fake News, Fake Money, How to Tell the Difference

Why is it so hard these days to tell fact from fiction? Who can be trusted to tell us what’s really going on? Can the New York Times and Washington Post still be believed? And what about money? Can we still trust the dollar, the euro, the pound sterling? What supports national currencies, anyway? Is this Bitcoin thing real or fake money, and should I buy some?

Here’s a compelling presentation by Andreas Antonopoulos, that addresses all of these questions. Antonopoulos is a technologist and entrepreneur and probably the most knowledgeable and insightful expert on bitcoin, blockchain technology and the profound changes that lie just ahead.

MUST WATCH!

Here’s the YouTube link: https://youtu.be/i_wOEL6dprg

Now take a deep dive into the political realities of our time by watching this presentation by CIA officer Kevin Shipp, in which he exposes the Shadow Government and the Deep State. If you question his credibility here is a brief bio from Information Clearing House:

Kevin Shipp, former Central Intelligence Agency (CIA) officer, intelligence and counter terrorism expert, held several high-level positions in the CIA. His assignments included protective agent for the Director of the CIA, counterintelligence investigator searching for moles inside the CIA, overseas counter terrorism operations officer, internal security investigator, assistant team leader for the antiterrorism tactical assault team, chief of training for the CIA federal police force and polygraph examiner. Mr. Shipp was the senior program manager for the Department of State, Diplomatic Security, Anti-Terrorism Assistance global police training program. He is the recipient of two CIA Meritorious Unit Citations, three Exceptional Performance Awards and a Medallion for high risk overseas operations. Website/book: fortheloveoffreedom.net

Here’s the YouTube link: https://youtu.be/rQouKi7xDpM