Category Archives: Politics

How does mutual credit clearing enable moneyless exchange?

Here’s and excellent, short and sweet description of how mutual credit clearing works to provide interest-free liquidity. From Bartercard New Zealand…

Toward true Democracy

Here’s the latest from Tom Atlee about government by the people….

Ancient Athens didn’t have politicians. Is there a lesson for us?

Few people realize that in ancient Athens – the original democracy from which modern democracies supposedly grew – no one was elected to be a representative.  There were no public offices elected by the people.  They just didn’t have politicians.*

They had voting, of course, because it was a democracy.  But they voted for proposed laws, not for candidates.

And they had a Council of 500 (the “boule”) who proposed laws for all the citizens to vote up or down in Athens’ participatory Assembly.  Ah!  So that’s a powerful role, being able to create the proposals that the people voted on!  So how were those 500 councilmembers chosen?

Well, believe it or not, those powerful people were ordinary citizens who had been chosen by lot – by random selection.  And Athens’ democracy didn’t stop there.  No way!  Nearly EVERYONE holding public office or serving on a governing board was an ordinary person who had been chosen by lot.  (The only exceptions were top military and financial posts, which constituted about 100 of the nearly 1000 government positions to be filled.)

In other words, Athens – that ancient city-state we consider “the birthplace of democracy” – was governed by randomly selected ordinary citizens. (For more detail, see http://www.stoa.org/projects/demos/article_democracy_overview?page=6&greekEncoding= or web search for Athens random selection)

This random selection approach – technically called “sortition” or “allotment” – was THE method for selecting people in government positions and, especially, in the Council of 500.  Here’s how it worked:  Each of Athens’ ten tribes (which were themselves defined to contain people from diverse territories and clans) picked 50 of its members at random to be on Athens’ Council of 500.  No citizen could serve on the Council more than twice, but most citizens served at least once in their lifetimes.  Within the Council, one of the ten tribal groups was chosen – by lot – to serve as presidents for the Council’s various sub-activities for about a month.  Furthermore, within that group of 50 presidents a chairman was chosen – again by lot – to preside over the other presidents for just one day.  Why only one day?  The chairman of the Council’s presidents was the most powerful office in Athens, holding the state seal and the keys to the state’s treasury and archives.

So we find that ordinary Athenian citizens – like ordinary Americans or other citizens of modern democracies – could EACH aspire to preside over their ENTIRE government.  However, those ordinary Athenians – UNLIKE most ordinary modern citizens – ACTUALLY had an excellent chance of serving in that lofty office.  It is estimated that “approximately one half of all Athenian citizens would, at some point during their lives, have the privilege and responsibility of holding this office, arguably the closest equivalent to a Chief Executive in the Athenian democracy.” (ref: the link given above)

The Athenians were obsessed with the necessity of random selection for a democracy.  They believed – quite rightly, it seems to me – that random selection not only made corruption very difficult but also involved the entire citizenry very directly in the challenges and powers of government.  In other words, random selection made Athens a true government of, by, and for its citizens.  For them, what made a democracy a democracy was random selection with few, if any, officials being elected.  Thus no politicians.  (We might also note that although they also supported voting, they were wary of mob rule and gave it a name: ochlocracy.**)

As the Wikipedia article on Athenian democracy says, “elections would favor those who were rich, noble, eloquent and well-known, while allotment spread the work of administration throughout the whole citizen body, engaging them in the crucial democratic experience of, to use Aristotle’s words, ‘ruling and being ruled in turn'”.

Compare that with our electoral system.  Electing people to office actually makes us a republic like the Roman Empire more than a democracy like ancient Athens.  We elect representatives… but who is this “we” and how representative are these “representatives”?

More…

“Those who fail to learn from history….”

Spurred by the movie, Lincoln, David Morris has written an excellent article that describes the struggle for freedom and equality subsequent to the Emancipation Proclamation, a struggle that continues even today, not only in the South, and not only for Blacks, Hispanics, and other minorities, but for all of us, everywhere in this country.

The article, Lincoln, the Movie, and the Rest of the Story, begins,

“Lincoln is a magnificent movie. But as I left the theatre, to echo Paul Harvey, the late radio commentator, I wanted to know “the rest of the story”, then goes on to describe the multitude of ploys that have been used to constrain the political power of various groups. It then concludes,

“By all means go see the movie Lincoln. You can even go out cheering the January 1865 victory. But realize that the movie’s triumphal ending did not mark the end of the struggle to gain full citizenship for blacks and other minorities, but only the beginning. Today minorities no longer confront poll taxes and the Ku Klux Klan but newly imposed voting restrictions and racially biased drug laws and a Supreme Court that is indifferent or outright hostile to the rights of minorities. Gridlocked Washington will not come to the rescue. But much of the problem lies at the state level. We need a new massive grassroots struggle such as that which arose in the 1950s and the 1960s, this one to overturn draconian and racially biased drug laws and to eliminate the new wave of law that hamper voter participation. The struggle continues.”

Read the full story here.

The drum beat for secession intensifies across the land

Americans cherish personal liberty. Unfortunately, we’ve lost most it to a federal government that has become unresponsive to the needs and wishes of the people. Something is seriously wrong, and it cannot be changed within the present structure of government which has been completely taken over by a small group of oligarchs who use it to advance their own narrow interests. Is it possible, or even desirable for the states to withdraw from the union? Increasing numbers of Americans seem to think so. Read what outgoing Congressman Ron Paul has this to say about it.—t.h.g.

Secession: Are We Free to Go?

By RonPaul.com on November 18, 2012

Is all the recent talk of secession mere sour grapes over the election, or perhaps something deeper?   Currently there are active petitions in support of secession for all 50 states, with Texas taking the lead in number of signatures.  Texas has well over the number of signatures needed to generate a response from the administration, and while I wouldn’t hold my breath on Texas actually seceding, I believe these petitions raise a lot of worthwhile questions about the nature of our union.

Is it treasonous to want to secede from the United States?  Many think the question of secession was settled by our Civil War.  On the contrary; the principles of self-governance and voluntary association are at the core of our founding.  Clearly Thomas Jefferson believed secession was proper, albeit as a last resort. Writing to William Giles in 1825, he concluded that states:

“should separate from our companions only when the sole alternatives left, are the dissolution of our Union with them, or submission to a government without limitation of powers.”

Keep in mind that the first and third paragraphs of the Declaration of Independence expressly contemplate the dissolution of a political union when the underlying government becomes tyrannical.

Do we have a “government without limitation of powers” yet?  The Federal government kept the Union together through violence and force in the Civil War, but did might really make right?

Secession is a deeply American principle.  This country was born through secession.  Some felt it was treasonous to secede from England, but those “traitors” became our country’s greatest patriots.

There is nothing treasonous or unpatriotic about wanting a federal government that is more responsive to the people it represents.  That is what our Revolutionary War was all about and today our own federal government is vastly overstepping its constitutional bounds with no signs of reform.  In fact, the recent election only further entrenched the status quo.  If the possibility of secession is completely off the table there is nothing to stop the federal government from continuing to encroach on our liberties and no recourse for those who are sick and tired of it.

Consider the ballot measures that passed in Colorado and Washington state regarding marijuana laws.  The people in those states have clearly indicated that they are ready to try something different where drug policy is concerned, yet they will still face a tremendous threat from the federal government.  In California, the Feds have been arresting peaceful medical marijuana users and raiding dispensaries that state and local governments have sanctioned. This shouldn’t happen in a free country.

It remains to be seen what will happen in states that are refusing to comply with the deeply unpopular mandates of Obamacare by not setting up healthcare exchanges.  It appears the Federal government will not respect those decisions either.

In a free country, governments derive their power from the consent of the governed. When the people have very clearly withdrawn their consent for a law, the discussion should be over.  If the Feds refuse to accept that and continue to run roughshod over the people, at what point do we acknowledge that that is not freedom anymore?  At what point should the people dissolve the political bands which have connected them with an increasingly tyrannical and oppressive federal government?  And if people or states are not free to leave the United States as a last resort, can they really think of themselves as free?

If a people cannot secede from an oppressive government, they cannot truly be considered free.

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The New York Times discovers Bernard von NotHaus and the Liberty Dollar

Here below is a recent article that appeared in the New York Times. It provides background and an update on one of the most bizarre trials to be held in the United States since the Scopes “monkey trial.”–t.h.g.

Prison May Be the Next Stop on a Gold Currency Journey
By
Published: October 24, 2012

MALIBU, Calif. — High above the cliff tops and the beach bars, up a winding mountain road, in a borrowed house on someone else’s ranch, an unusual criminal is waiting for his fate.

His name is Bernard von NotHaus, and he is a professed “monetary architect” and a maker of custom coins found guilty last spring of counterfeiting charges for minting and distributing a form of private money called the Liberty Dollar.

Described by some as “the Rosa Parks of the constitutional currency movement,” Mr. von NotHaus managed over the last decade to get more than 60 million real dollars’ worth of his precious metal-backed currency into circulation across the country — so much, and with such deep penetration, that the prosecutor overseeing his case accused him of “domestic terrorism” for using them to undermine the government.

Of course, if you ask him what caused him to be living here in exile, waiting with the rabbits for his sentence to be rendered, he will give a different account of what occurred. …more…

Why Obama Won, and What We Can Expect Next

Michael Hudson is one of the few academic economists who is not completely deluded. He is worthy of your attention. This is is recent article that appeared in COUNTERPUNCH.–t.h.g.

By Their Fruits Ye Shall Know Them

by MICHAEL HUDSON

The Democrats could not have won so handily without the Citizens United ruling. That is what enabled the Koch Brothers to spend their billions to support right-wing candidates that barked and growled like sheep dogs to give voters little civilized option but to vote for “the lesser evil.” This will be President Obama’s epitaph for future historians. Orchestrating the election like a World Wrestling Federation melodrama, the Tea Party’s sponsors threw billions of dollars into the campaign to cast the President’s party in the role of “good cop” against stereotyped opponents attacking women’s rights, Hispanics and nearly every other hyphenated-American interest group.

In Connecticut, Senate candidate Linda McMahon spent a reported $97 million (including her earlier ego trip) to make her Democratic challenger look good. It was that way throughout the country. Republicans are pretending to wring their hands at their defeat, leaving the Democrats to beat up their constituency and take the blame four years from now. …More…

 

QE ad infinitum

Last week, Ben Bernanke announced that the FED would continue to inflate the dollar on an ongoing basis for “as long as it takes.”

As I’ve said before, purchases of securities by the FED amounts to the injection of counterfeit money into the economy under color of law. It’s bad enough when FED purchases are limited to federal government securities. In that case, it is federal budget deficits that are enabled. Now, the FED is buying, at inflated prices, “junk” (securities of little worth) from banks, financial institutions, and speculators, enriching those who caused the bubble in the first place, and enabling more of the same.

This is just another move by the banking and financial elite to take ownership of the entire world.

A recent article in ZNet by Jack Rasmus concludes,

The significance of the Fed’s QE3 move therefore is there will continue to be free money in unlimited amounts to banks and investors to hoard or to speculate and play with, while it’s cuts in spending and disposable income for the rest of us. But ‘QEs for them’ and ‘Austerity for the rest of us’ will mean continued economic slowdown and recession, accelerating in Europe, more slowly coming in the US, and increasingly on the horizon for even Asia.

That continued economic slowdown—in the US and globally—will make the private banking system in turn even more unstable, regardless of how many FED QEs are introduced.  So why do governments continue with ‘austerity’ policies on the fiscal side that ultimately negate QE policies on the monetary side?  Because QEs are more profitable to bankers and investors. And those bankers and investors believe if they can just hold out in the short run—with the government and central bank making up for their short term losses with trillions of ‘free money’ injections, in the longer run the capitalist system will self-correct itself on its own. But that proposition—i.e. bail out investors and bankers and let the markets do the rest—is economic ‘ideology’ and not economic fact or science.

As governments, bankers, and financial elites continue to abuse the currency, the economy, and our political institutions, it becomes ever more urgent that people cooperate in organizing new structures of exchange and finance that empower them sufficiently to meet their basic needs and build “the Butterfly Society” to save the planet and provide a dignified life for everyone. — t.h.g.

Beware of the Right-Wing Socialists

Here below is another insightful gem from E. C. Riegel. In this essay, Riegel (1) highlights the predominant fallacy which holds that money is based on political authority and should be controlled by the State, and (2) explains why true free enterprise can only exist when private enterprisers control not only the means of production, and the means of distribution, but also the means of exchange.

The present global system of money is far from that. It is the product of collusion between politicians and bankers that has established a dysfunctional, exploitative, and violent despotism. –t.h.g.

The Right-Wing Socialists

THERE ARE three classes of socialists: the left-wing, or Marxist, group, who believe that the government should own and control everything; the middle-of-the ­road socialists, who believe the government should own and operate public utilities; and the right-wing social­ists, who believe that the government should control only the monetary system.

The right-wing socialists are by far the most danger­ous, because they are not known as socialists and call themselves capitalists, individualists, private enterprisers, etc. They even believe themselves to be anti-socialist and profess full faith in private enterprise. They are not only numerically the largest group of socialists but are also individually the most influential. Among them are the leading industrialists and mercantilists and bankers and statesmen.

The right wing socialists believe that with produc­tion and distribution facilities in the ownership and operation of private interests, and with monetary facilities in the hands of government, we can have free enterprise. They might as well believe that if a man owns an auto­mobile, he need not worry about who or what controls the gas.

Private enterprise means the right among men to come to voluntary agreement on the exchange of their goods and services. These agreements, some written, some oral, some implicit, some explicit, run into the millions, and upon their fidelity rests the entire social structure. In a money economy, all these contracts are expressed in terms of the monetary unit, which is itself based upon a contract-the basic contract which is the foundation of the entire pyramid of contracts.

What is the money contract that makes possible or impossible the faithful performance of every other con­tract? Ask any businessman, banker, lawyer, economist or statesman, and you will find that his idea is not only vague, but that it involves legislation. In other words, he believes that money is a political product.

In contrast with this universal belief, the truth is that the state is incompetent to legislate money and power­less to issue it. The substance of money is supplied en­tirely by private enterprise. The state’s intervention in money is at best an impediment to private enterprise, and with the assertion of the issue power, it becomes the active agent of socialization. Thus those who believe in or accept political money power – and their number is legion – are the most dangerous, though innocent, socialists.

While the great mass of people have no ideology, those who think on the issue between private enterprise and socialism are virtually all socialists of the three classes named. This is a startling fact that we must recognize before the final battle lines are formed. The would-be friends of private enterprise must be made real friends, instead of innocent fellow travelers with those who would destroy our liberties.

Private enterprise, to survive, must control its three facilities, namely, the means of exchange, the means of production, and the means of distribution. To control the means of exchange, we must have separation of money and state.

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This essay is contained in the republished version of Riegel’s, New Approach to Freedom. That book, and Riegel’s other major works can be found at http://www.newapproachtofreedom.info/.–t.h.g.

Competing currencies essential to freedom

This appeal by Congressman Ron Paul is perhaps the most important proposal by an American politician in the last 100 years.
I’m glad to know that Congressman Paul is not limiting his proposal to gold and silver currencies.

The most liberating means of payment is “mutual credit clearing” through independent non-bank associations of businesses and individuals.

Of course, the credit in such accounts needs to be denominated in some objective units, which could be specified weights of gold or silver, but better still, would be an “index unit” based on a “market basket” of basic commodities that are widely and freely traded.

My four books on the subject, and my websites, provide coverage of pertinent concepts and history, and full details on my prescriptions for businesses, communities, and governments.–t.h.g. 

Legalize Competing Currencies

I recently held a hearing in my congressional subcommittee on the subject of competing currencies.  This is an issue of enormous importance, but unfortunately few Americans understand how the Federal Reserve and Treasury Department impose a strict monopoly on money in America.

This monopoly is maintained using federal counterfeiting laws, which is a bit rich.  If any organization is guilty of counterfeiting dollars, it is our own Treasury.  But those who dare to challenge federal legal tender laws by circulating competing currencies– at least physical currencies– risk going to prison.

Like all government created monopolies, the federal monopoly on money results in substandard product in the form of our ever-depreciating dollars.

Yet governments have always sought to monopolize the issuance of money, either directly or through the creation of central banks. The expanding role of the Federal Reserve in the 20th century enabled our federal government to grow wildly larger than would have been possible otherwise.  Our Fed, like all central banks, encourages deficits by effectively monetizing Treasury debt.  But the price we pay is the terrible and ongoing debasement of our money.

Allowing individuals and business to use alternate currencies, especially currencies backed by gold and silver, would expose the whole rotten system because the marketplace would prefer such alternate currencies unless and until the Fed suddenly imposed radical discipline on its dollar inflation.

Sadly, Americans are far less free than many others around the world when it comes to protecting themselves against the rapidly depreciating US dollar.  Mexican workers can set up accounts denominated in ounces of silver and take tax-free delivery of that silver whenever they want.  In Singapore and other Asian countries, individuals can set up bank accounts denominated in gold and silver.  Debit cards can be linked to gold and silver accounts so that customers can use gold and silver to make point of sale transactions, a service which is only available to non-Americans.

The obvious solution is to legalize monetary freedom and allow the circulation of parallel and competing currencies.  There is no reason why Americans should not be able to transact, save, and invest using the currency of their choosing.  They should be free to use gold, silver, or other currencies with no legal restrictions or punitive taxation standing in the way.  Restoring the monetary system envisioned by the Constitution is the only way to ensure the economic security of the American people.

After all, if our monetary system is fundamentally sound– and the Federal Reserve indeed stabilizes the dollar as its apologists claim–then why fear competition?  Why do we accept that centralized, monopoly control over our money is compatible with a supposedly free-market economy?  In a free market, the government’s fiat dollar should compete with alternate currencies for the benefit of American consumers, savers, and investors.

As Austrian economist Ludwig von Mises explained, sound money is an instrument that protects our civil liberties against despotic government. Our current monetary system is indeed despotic, and the surest way to correct things simply is to legalize competing currencies.

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Big Brother is watching you…and groping, and detaining, and…

What’s next?

This article by Naomi Wolff describes just how far advanced tyranny is in the United States today. With few exceptions, our national leaders who have sworn to uphold the Constitution have trampled it into the dirt. Isn’t there a name for that?–t.h.g.

How the US Uses Sexual Humiliation as a Political Tool to Control the Masses

By Naomi Wolff, Guardian, April 5, 2012

http://www.guardian.co.uk/commentisfree/cifamerica/2012/apr/05/us-sexual-humiliation-political-control/print

In a five-four ruling this week, the supreme court decided that anyone can be strip-searched upon arrest for any offense, however minor, at any time. This horror show ruling joins two recent horror show laws: the NDAA, which lets anyone be arrested forever at any time, and HR 347, the “trespass bill”, which gives you a 10-year sentence for protesting anywhere near someone with secret service protection. These criminalizations of being human follow, of course, the mini-uprising of the Occupy movement.

Is American strip-searching benign? The man who had brought the initial suit, Albert Florence, described having been told to “turn around. Squat and cough. Spread your cheeks.” He said he felt humiliated: “It made me feel like less of a man.”

In surreal reasoning, justice Anthony Kennedy explained that this ruling is necessary because the 9/11 bomber could have been stopped for speeding. How would strip searching him have prevented the attack? Did justice Kennedy imagine that plans to blow up the twin towers had been concealed in a body cavity? In still more bizarre non-logic, his and the other justices’ decision rests on concerns about weapons and contraband in prison systems. But people under arrest – that is, who are not yet convicted – haven’t been introduced into a prison population.

Our surveillance state shown considerable determination to intrude on citizens sexually. There’s the sexual abuse of prisoners at Bagram – der Spiegel reports that “former inmates report incidents of … various forms of sexual humiliation. In some cases, an interrogator would place his penis along the face of the detainee while he was being questioned. Other inmates were raped with sticks or threatened with anal sex”. There was the stripping of Bradley Manning is solitary confinement. And there’s the policy set up after the story of the “underwear bomber” to grope US travelers genitally or else force them to go through a machine – made by a company, Rapiscan, owned by terror profiteer and former DHA czar Michael Chertoff – with images so vivid that it has been called the “pornoscanner”.

Believe me: you don’t want the state having the power to strip your clothes off. History shows that the use of forced nudity by a state that is descending into fascism is powerfully effective in controlling and subduing populations.

The political use of forced nudity by anti-democratic regimes is long established. Forcing people to undress is the first step in breaking down their sense of individuality and dignity and reinforcing their powerlessness. Enslaved women were sold naked on the blocks in the American south, and adolescent male slaves served young white ladies at table in the south, while they themselves were naked: their invisible humiliation was a trope for their emasculation. Jewish prisoners herded into concentration camps were stripped of clothing and photographed naked, as iconic images of that Holocaust reiterated.

One of the most terrifying moments for me when I visited Guantanamo prison in 2009 was seeing the way the architecture of the building positioned glass-fronted shower cubicles facing intentionally right into the central atrium – where young female guards stood watch over the forced nakedness of Muslim prisoners, who had no way to conceal themselves. Laws and rulings such as this are clearly designed to bring the conditions of Guantanamo, and abusive detention, home.

I have watched male police and TSA members standing by side by side salaciously observing women as they have been “patted down” in airports. I have experienced the weirdly phrased, sexually perverse intrusiveness of the state during an airport “pat-down”, which is always phrased in the words of a steamy paperback (“do you have any sensitive areas? … I will use the back of my hands under your breasts …”). One of my Facebook commentators suggested, I think plausibly, that more women are about to be found liable for arrest for petty reasons (scarily enough, the TSA is advertising for more female officers).

I interviewed the equivalent of TSA workers in Britain and found that the genital groping that is obligatory in the US is illegal in Britain. I believe that the genital groping policy in America, too, is designed to psychologically habituate US citizens to a condition in which they are demeaned and sexually intruded upon by the state – at any moment.

The most terrifying phrase of all in the decision is justice Kennedy’s striking use of the term “detainees” for “United States citizens under arrest”. Some members of Occupy who were arrested in Los Angeles also reported having been referred to by police as such. Justice Kennedy’s new use of what looks like a deliberate activation of that phrase is illuminating.

Ten years of association have given “detainee” the synonymous meaning in America as those to whom no rights apply – especially in prison. It has been long in use in America, habituating us to link it with a condition in which random Muslims far away may be stripped by the American state of any rights. Now the term – with its associations of “those to whom anything may be done” – is being deployed systematically in the direction of … any old American citizen.

Where are we headed? Why? These recent laws criminalizing protest, and giving local police – who, recall, are now infused with DHS money, military hardware and personnel – powers to terrify and traumatise people who have not gone through due process or trial, are being set up to work in concert with a see-all-all-the-time surveillance state. A facility is being set up in Utah by the NSA to monitor everything all the time: James Bamford wrote in Wired magazine that the new facility in Bluffdale, Utah, is being built, where the NSA will look at billions of emails, texts and phone calls. Similar legislation is being pushed forward in the UK.

With that Big Brother eye in place, working alongside these strip-search laws, – between the all-seeing data-mining technology and the terrifying police powers to sexually abuse and humiliate you at will – no one will need a formal coup to have a cowed and compliant citizenry. If you say anything controversial online or on the phone, will you face arrest and sexual humiliation?

Remember, you don’t need to have done anything wrong to be arrested in America any longer. You can be arrested for walking your dog without a leash. The man who was forced to spread his buttocks was stopped for a driving infraction. I was told by an NYPD sergeant that “safety” issues allow the NYPD to make arrests at will. So nothing prevents thousands of Occupy protesters – if there will be any left after these laws start to bite – from being rounded up and stripped naked under intimidating conditions.

Why is this happening? I used to think the push was just led by those who profited from endless war and surveillance – but now I see the struggle as larger. As one internet advocate said to me: “There is a race against time: they realise the internet is a tool of empowerment that will work against their interests, and they need to race to turn it into a tool of control.”

As Chris Hedges wrote in his riveting account of the NDAA: “There are now 1,271 government agencies and 1,931 private companies that work on programs related to counterterrorism, homeland security and intelligence in about 10,000 locations across the United States, the Washington Post reported in a 2010 series by Dana Priest and William M Arken. There are 854,000 people with top-secret security clearances, the reporters wrote, and in Washington, DC, and the surrounding area 33 building complexes for top-secret intelligence work are under construction or have been built since September 2011.”

This enormous new sector of the economy has a multi-billion-dollar vested interest in setting up a system to surveil, physically intimidate and prey upon the rest of American society.

Now they can do so by threatening to demean you sexually – a potent tool in the hands of any bully.