Category Archives: The state of democracy

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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Walking Away: From the “New (Old) World Order,” into the Old (New) World Order. Part II

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Discord and confusion, conflicting stories, rampant disinformation, faction against faction,  widespread anger and fear, people fighting among themselves, economic dislocation, personal interactions disrupted and people separated from friends and family, cessation of favorite sports and pastimes, and widespread abandonment of familiar ways of doing things. That is the state of our world today.

How have we come to this sorry pass and to what is it leading? Is this an act of God, is it the natural course of societal evolution, or is it something that has been intentionally contrived, and if so, by whom and to what purpose?

Read the full article here

Walking Away: From the “New (Old) World Order,” into the Old (New) World Order. Part I

ObeySleep1

Global pandemic, social distancing, widespread shut-downs, testing and “tracing,” economic crisis, and more recently, massive protests and social unrest, not just in the US, but around the world — What does it all mean? Like virtually everyone else in the world, my attention lately has been focused on that question.

I don’t feel terribly anxious about Covid-19, even though for me personally it poses a significant existential threat. Although I’m fortunate to have no chronic illnesses, I am well advanced in years, and according to some recent reports, my gender, blood type, and ethnic heritage may put me further at risk.

I am more concerned about the social, political and economic impacts of the situation and governments’ reactions to it which may turn out to be more disruptive than the pandemic itself. At the same time I am hopeful, even optimistic, that this crisis brings with it great opportunities for positive changes that are long overdue.

Read the full article here

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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The true pathway to peace, prosperity and freedom

For the past four decades E. C. Riegel has been my primary source of insight and

E,. C. Riegel

inspiration on the concepts and mechanisms of money and exchange. Writing mainly from the 1920s thru the 1940s, his is vision is acutely penetrating and his expression clear and almost poetic. For that reason I and a few others have made every effort to make his work known to a much wider audience. His most important works are freely available to be downloaded and I have listed the web links on my website under the Library menu item at https://beyondmoney.net/library/.

I realized very early in my peace and justice work, that the primary obstacle to peace, justice, and freedom, lies in the centralization of power and the concentration of wealth. Riegel and others helped me to see that the global money and banking system is the main instrument by which that is made possible. Riegel opened my eyes to the true nature of money and the fact that we the people already have in our hands the power to create true money. He pointed out that “Heretofore, economics has located the source of production at one point and the source of money at another, with the result that synchronization and balancing of issue between wealth producing power and money power were impossible.” Riegel then laid out a way to bring those two powers together, a plan which I, in all modesty, have enhanced and adapted to present conditions.

I’ve lately been in the process of preparing a document containing excerpts from Riegel’s 1944 book, Private Enterprise Money, along with my comments, much as I did years ago with my annotated précis of his book, Flight From Inflation. That may take a while to complete but I would rather not delay in sharing with my readers a little gem from pages 106 in which Riegel presciently described our present predicament. Here it is:

THE SURPRISE WEAPON

Society is in the twilight of a passing day. The state now undertakes to finance the economy, and, since a free economy is manifestly impossible where the state assumes the responsibility of supplying the money circulation, the politician is compelled to choose between fascism and communism. Under either choice liberty is abolished and the people are enslaved. As the planners all over the world adopt their devices for a managed economy, and ideologists and sloganizers prepare their implements to condition the minds of men to their control plans, and the cause of human freedom seems defenseless, there falls into the hands of the people a surprise weapon that will turn the tide of battle and give the people mastery, not only over their private affairs, but over the would-be political planners. This weapon is the people’s money power as defined in the following pages. It will change the whole course of human events into the paths of liberty, prosperity and peace.

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Newsletter — Spring, 2020

  • My latest article, Riding the Populist Wave
  • The Economics of Peace, Justice and Sustainability
  • How can the next world war be averted?
  • System change demands economic change–building the Open Credit Network
  • Swami Beyondananda
  • Switch: How to Change Things When Change Is Hard
  • The dangers of 5G wireless technology: Warnings from an industry insider

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My latest article,
Riding the Populist Wave

In my latest article I report that capitalists now admit that the system is “rigged” in their favor. I argue 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 click here to 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…

The article has also been published on Medium and republished at OpEd News
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The Economics of Peace, Justice and Sustainability

This video was recently prepared by Ken Freeman based on a presentation I gave at the Economics of Peace Conference in Sonoma, California in October, 2009. My prescriptions for reclaiming the credit commons and creating a new “butterfly economy” remain completely relevant, and their implementation is becoming ever more urgent.
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How can the next world war can be averted?

If you want an answer to that, listen to this interview with Dr. Paul Craig Roberts’ on Ellen Brown’s podcast, Resolved for 2020: Come Together, starting around 21:20. The most interesting part of the interview is toward the end (at 45:50) where Dr. Roberts talks frankly about the current geopolitical situation and the response to his recent article, Putin’s Hour Is At Hand, which has gone viral around the world. If you can put aside any judgments you may have made about Putin and Russia based on the chorus of Russophobic rhetoric coming from the mainstream media you may learn something important.
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System change demands economic change, by Oliver Sylvester-Bradley

In this recent article, Oliver Sylvester-Bradley of the Open Coop, announces the alpha launch of the new web platform for the Open Credit Network (OCN), a cooperative mutual credit clearing system that enables the moneyless exchange of goods and services among its member businesses. The Open Credit Network has the potential to realize the ideals and processes that E.C. Riegel expounded and that I have been elaborating and refining for the past 40 years.
https://www.thealternative.org.uk/dailyalternative/2020/1/11/open-credit-network
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Swami  Beyondananda

Swami  Beyondananda (Steve Bhaerman) makes light of the heavy. An occasional dose of Swami’s wisdom can help to keep you sane in this insane world. https://wakeuplaughing.com/.

And check out Steve’s other website, https://wikipolitiki.com/, “Where left and right come front and center to face the music and dance together, to turn the funk into function and leave the junk at the junction”
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Switch: How to Change Things When Change Is Hard

This book by Chip and Dan Heath, rated at 4.5/5 stars on Amazon.com, is one of the most important books I’ve ever read. I read parts of it a few years ago and was quite impressed but too busy at the time to finish it. Recently, as I was scanning the shelves at my local public library I noticed the audio version of the book so I picked it up and checked it out. Over the past few weeks I’ve been listening to it in my car, a few minutes at a time as I travel about town. Whether the change one wishes to make is on a personal level, an organizational level, or the societal level, this book is a treasure trove that provides important insights and basic principles about how change happens, and numerous fascinating stories that illustrate their successful application. Whether your intention is to change yourself or to change the world, this book is essential reading (or listening). Find it at your public library or at your favorite bookseller.
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The dangers of 5G wireless technology: Warnings from an industry insider who tells it all.

In a recent message, long-time correspondent Ben Levi alerted me to a video by Frank Clegg, former President of Microsoft Canada, in which he talks about the dangers inherent in 5G/Wireless Technologies. This is something that must be taken seriously; evertyone’s health depends on it. You can view the video here. Ben also recommended an alternative to 5G that he is promoting and is described at http://www.safeg.net.
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As I write this the drama surrounding the Coronavirus (COVID-19) continues to intensify. Around the world events are being cancelled, people are limiting their movements and interpersonal contacts, and many spheres of routine activity are being disrupted. Can the spread of the virus be stopped or is it destined to become, like the flu, a universal and recurrent cause of disease? What will be its social, political, and economic implications? Is there a silver lining to this dark cloud? Time will tell.

Wishing you a healthy and happy Spring season,
Thomas

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.

Tulsi Gabbard calls for reforms of US voting system

These measures represent a step toward true democracy and a secure balloting system.

Open Primaries. Transitioning to open primaries in every state, away from our broken and egregiously expensive caucus system, and getting rid of the influence of superdelegates

Same-day Registration. Allowing same-day registration so every person gets to vote, regardless of how they choose to affiliate that election cycle

A paper ballot. Instituting a paper ballot system (or voter-verified paper backup) to keep our elections secure and free of foreign influence

Ranked-choice Voting. Introducing ranked choice voting at the national level, making sure no vote is ever wasted.

Automatic Voter Registration. Ensuring automatic voter registration for every person who turns 18 because there should be very few barriers to participating in democracy.

Make Election Day a Federal Holiday. We should reduce all barriers to performing one of our greatest civic duties.

Who else among the 2020 candidates is calling for such common sense changes? Who else is calling for an end to aggressive US foreign policy and regime-change wars? Who else has experienced first-hand the horrors of combat? Who else has sacrificed the fast-track to the top of the power pyramid in order to serve the common good?
See Tulsi’s website for more details.

New Year’s Newsletter — January 2020

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The dirty secret of capitalism — and a new way forward
In this TED talk, billionaire businessman, Nick Hanauer debunks the assumptions of neo-liberal economics and shines light on the path toward a new economics that promotes a more sustainable, Hanauer_biz_tedtalks_0517prosperous and equitable society. Hanauer argues that neoliberal economic theory has sold itself to us as “unchangeable natural law, when in fact it’s social norms and constructed narratives, based on pseudo science.” He says that “If we want a new economics all we have to do is choose to have it.” Watch it here.

Of course, implementing that choice depends on “we” having enough power to tilt the political landscape back toward something closer to level. I continue to argue that E. C. Riegel had it right when he said:

We have not even made a beginning in democracy by merely putting at the westPointAdjdisposal of man an occasional ballot to choose who should be his governor under a system that is inherently paternalistic and autocratic. Man must have untrammeled command of a daily – an hourly ballot which he casts in the market place to support the things and services he desires and which he withholds from others and which he transmits to the state or denies it according as it merits his patronage. He must have the power to create this money ballot in a measure commensurate with his power to produce and serve his fellow man without hindrance from his servant, the state. The moment we limit or thwart or bias this money power, which is natural to man, and the very criterion of his sovereignty, we pervert democracy beyond the power of any political ballot or any parliament to remedy. Money power cannot be separated from democratic power without miscarriage and ensuing frustration – political and economic. Democracy implies the sovereignty of man; and, since man cannot be sovereign without the money power, there cannot be democracy under the political money system.

Until, through the assertion of his money power, man can requisition from industry all he produces, and put government under his direct patronage, human aspirations will be unattainable.
— From Private Enterprise Money.

 

How to assert our “money power” has been the substance of my work for more than 40 years. See my books, articles, presentations and interviews at my website, https://beyondmoney.net
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Presidential Debate
I took a pass on watching the January 14 Presidential debate which pitted Bernie against five establishment candidates in what was a predictably bland rehash that Tulsiwas limited in scope. I chose instead to watch the discussion between Tulsi Gabbard, Dennis Kucinich, Lawrence Lessig, and Stephen Kinzer which was live streamed on YouTube. The discussion focused on the key policy issue, the US interventionist foreign policy, and the fact that most Senators and Representatives of both parties in Congress are beholden to the military-industrial [and banking] complex, and are complicit in the immoral, illegal, and wasteful pursuit of global domination. If you missed it you can still see it at https://tulsi.to/discussion.
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All Wars Are Bankers’ Wars
Anyone who wishes to be well informed and understand civilization’s present predicament would do well to watch this video. I may not agree with all the specific details but the basic story is correct and well documented, and congruent with my argument that the global interest-based, debt-money regime that centralizes power and concentrates wealth is the primary obstacle to social justice, economic equity and peaceful relations among people and nations, and indeed, an existential threat to civilization itself. View it here.

Wishing all a happy, productive, and peaceful year,
Thomas H. Greco, Jr.