Tuesday, February 03, 2009

Problem with the real economy? There isn't one.

I can not escape it. Of all the stories I hear about the troubled economy, I feel like the scope of the problem isn't being fully realized. The talk about bailouts, economic stimulus, and predatory lending, supply and demand, are just components of a very regulated system... well, except not regulated by the United States government, by the banks. The 12 banks. The 12 only significant banks. Sure, there are many banks that are allowed to play in the financial market, but they play at the will of the 12.

While I might love to go into many arguments that have been made and use them as sources to support my claims, I have not reached that point in my argument, however, here is a quick list of sources that I draw my beliefs from.

Let me issue and control a nation's money, and I care not who writes its laws ~Mayer Amschel Rothschild
and he succeeded.

Consider the way we perceive money. It is an important part of our society, but we give it value in a way that no commodity would ever receive. Gold does not yield the immediate exchange power we have given to our currency. The value is abstract, and I understand that. But consider the role money plays, and imagine a person or corporation that could operate freely outside the system.

The best analogy I can make is to virtual worlds. World of Warcraft has an economy. Gold plays a powerful role in acquiring items and potions and such. There is also the economy of gold sellers that making the farming of resources very difficult in some cases, but in turn lowering the price of those goods making it a buyers market. Large guilds and small guilds, big players and small players have large and small amounts of gold. This gold gives them power to play a role in the game.

Now consider a GM.

How wealthy is a GM?

A GM is a God in every possible meaning. How much money does God have. Gods' have no need for money because their power is divine. That which can only be manipulated by mortals through the flow of money is granted by these gods.

Well, I have talked about God in reality, and sorry, but there is obviously no God. The power that exists in World of Warcraft by GM's is the type of power Christians consider their God to posses. Personally, I've moved on. I am not going to waste my life waiting for something that isn't there, especially in the presence of such a rich beautiful environment around us to explore and learn about... but I digress.

Some people talk about the great power of the GM and the great things that they have. I am baffled by how 'impressed' some people are by this power when "HELLO!!! They are programmed that way!" Further, Blizzard would not benefit from destroying its own economy. It thrives off of subscriptions, and while they could possibly finance a great guild to become powerful beyond all measure... the power is only an illusion. If Blizzard decided it didn't want to do World of Warcraft anymore, no amount of game gold is going to have any influence on the future of the game.

In a very similar way, the Big 12 operate on the economy, media, and government with the same level of control Blizzard has over the distribution of game gold...

...but in not nearly a nice way.

Zeitgeist Part III covers the basics the best that got me into looking at this mess. The only thing that makes this entire monetary system even appear to work is that it is so greatly distributed, it is not apparent how insidious it is as a whole.

  1. The federal reserve prints money
  2. The money is deposited into 12 exclusive banks, and only these 12 banks.
  3. The money is loaned out at interest to the government and the people / corporations.
  4. ALL the money that exists is one big loan from these 12 banks + interest, so even if all the money in the entire world were to be returned to the banks, interest is still owed to the big 12.
  5. The only way to pay off this interest is:
  1. To print more money that is further borrowed and loaned at interest.
  2. Liquidate the assets of the borrower.
One defense in the case of 5.1 is that the federal reserve can only issue money at the approval of the Treasury, but in the case of 5.2, the real value (as in real economy versus finance economy) of any default (which is inevitable when the amount of money owed is and always will be greater than all the money in the world) goes to the loan holder, any of the Big 12.

Sure, there are smaller banks. and those banks collect on defaulted loans, or even make their money on loans being paid back. It is even possible that the banks could be using only money from depositors and not borrowing the money from one of the Big 12, but even in that case, that money is SOMEONE'S debt owed SOMEWHERE.

What do you buy with that type of power, and in what cases do you use your influence of forgiveness to these loans to extend your power? Invest in real property, invest in big media. Only let the people live on YOUR land, using your money, and watching your news and media, and invest in politicians with nice happy ambitions that will bring about change, so long as it is within the system, and not OF the system.

We may have issued a Declaration of Independence, fought a war, and say we won because we have this constitution, a congress, and a president, and all these laws...

...but who cares. The only people that really cared were the British bankers. Only too shortly after the war was this country sold out. Only 2 of the 12 banks are domestically owned. Look for yourself which banks these are, and which family leads them, and tell me how much good it has ever done for the American people.

It is musical chairs in this monetary system, and we are arguing over their color and the softness of the seats. We argue over capitalism and communism, supply and demand, and we don't look at the big picture. THERE IS NO REAL ECONOMY when the system operates at the will of bankers, because there is no money, there is only debt.

Does it really take a logician to see this; to see the limit of this system of inflation and liquidation? Why are we working for these bankers? Why do we appoint them the gods of our economy and complain like as if it was anyone else's fault; we have appointed an evil God, or maybe we should have learned a lesson or two about humanity and the bestowing of absolute power to anyone.
It is well enough that the people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning. ~ Henry Ford
If the American people ever allow private banks to control the issue of currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their fathers conquered. ~ Thomas Jefferson
We've done it. We have lost the revolutionary war.

The one nice thing? There is statistically NO chance that Obama would be assassinated. Every president that has ever been assassinated has been close to eliminating the central bank of the United States. Of the others whom have had attempts on their life, two-thirds of them argued against the central bank. So as I said, Obama is pretty safe.

Has he said anything about nationalized banking? Guess I'll need to check. If so, that will be the real threat: trying to give everyone the red pill and possibly displeasing our gods. The threat would never be over the color of his skin.

So consider this: Look at the power and control of the media. Control of the media is almost completely centralized. They have influenced copyright law and culture to devastating levels. All of this to ensure censorship of radical ideas like abolishing the federal reserve. The media can control much from its position... now consider on top of that the same families controlling the banks. Hypothetically, what would be the limits of control for 12 companies cooperating to ultimately control all the banks, the media, and using its wealth to purchase land effectively for free in the end (What useful labor has been produced by these banks that get free money to loan out at interest?)

The only hope I see in seeing anything resembling benevolence from these gods is: You play buy their rules. You play by their system. You obey their laws. You worry about whatever the news tells you to worry about. You pick a political party and when you are upset you write theiryour congressmen. You can hold your signs (after you get your permit).

Just don't think for a second you could beat them, or that the world might be able to work in some different way.

I am not advocating violence, but I wish someone could please explain to me how this might end any other way. Of course there is one nice, easy, non-violent solution. Just keep playing along, and pretend like everything is fine. For real measure, just never get into debt, and never give anyone money you can't stand to loose. Oh, and of course it is important that you never stop working, because don't forget inflation takes money away from you no matter where you hide it. Of course there is hope that you die early.

Anyway, while I am certain that the gods' would not allow it, here is what I believe would be a superior monetary policy, both the necessary transition, and the self sustaining system that would follow. Keep in mind this is a work in progress, and this is my initial proposal:

1) Treasury takes over Federal Reserve and void all promissory notes / bonds issued to Federal Reserve.
2) Declare eminent domain over all bank debts and Federal Reserve notes (the money).
3) Outlaw usury (charging / earning interest). Allow only the issue of dividends / stocks.
4) Nationalize banking: Tellers would be public employees and ATM's would be a public service, giving people a safe place to keep their money.
5) Eliminate the IRS (part 2)
6) Pass the Fair Tax Act (part 2)
7) Draft a Federal Employment Act (part 3)

Looking at the evidence, the problem is not a lack of the gold standard. The gold standard is a way to control bankers, but fiat money can be self correcting without the wild swings of the whims of the bankers, particularly when you eliminate interest from the equation.

1) Government prints some fixed amount of money each year.
2) This fixed amount of money is the federal budget. This money can be spent on all the things necessary. Initially money can be given to state governments proportionately. All employees of the government would be paid in these dollars in the same fashion Lincoln paid soldiers of the Civil War (he printed his own money). Each year, this same amount of money would be printed. There would be no debt ever because the government isn't borrowing it or taxing it from other people that borrowed it. It would be merely a tool of the economy.
3) (part 2) Money enters the system through (sorry mises) the governments planning of what would be best for people to do in terms of useful labor. This would inspire people to acquire dollars in the same way they did before. The value of the dollar would be others incentive to produce goods and accept these dollars as payment. Once those privately produced goods were purchased, then the cycle is complete, the government is entitled to a tax. The fixed portion of the price of newly produced goods over time should reach an equilibrium of ( one trillion dollars + money in economy ) * .23 = one trillion dollars. Normal Free Trade should be able to operate at this point.
4) If a large volume of money is taken outside of the country, or if lots of money is saved, then an inflation does occur. If the money re-enters the market, taxes should bring the system back to equilibrium. This may sound very similar to what we have now, or at least theorized, but I disagree. The equation above has a set equilibrium based on the forces of supply and demand and the natural movement of the REAL economy. Right now we have a fake economy controlled by a finance economy that limits out over time to give everything to the bankers + infinite inflation of the dollar. That is NOT the same kind of equilibrium.
5) There should be a legal right to work. Virtually anyone can join the military and make money if necessary. Why not extend this to any useful labor. People don't need the threat of starvation and death of their family to be motivated to higher learning and career advancement. If there is anything people ever need, that is a job because assisting people with what they need IS useful labor as ascribed by Adam Smith. The goal isn't the money, the goal is useful labor. Government paying you just means they are the ones telling you what to do that is useful. Money is only the instrument. Again, those dollars are promises to stimulate the private sector. When those dollars are spent in the private sector, taxes take a portion and return it to the government. Useful labor by government stimulates the private sector in proportion to the tax rate.

Rothschild won his bet, control the money supply, control a nation. And sadly, if this is the only way it can be understood:
The rich ruleth over the poor, and the borrower is servant to the lender
-- Proverbs 22:7
Our own government is a slave to the interests of bankers; it is no wonder the government is powerless to do much about the economy. Wealth comes from useful labor. For whatever role of leadership the government is meant to play, people are suffering and yet there is nothing useful for people to do? This has always baffled me on a very simplistic level, but after going through many of the sources above, it makes a lot more sense.

Let the bankers get / maintain their control, and we will always, as a whole, owe more to them than everything we have. It is the way the system was designed.

If you are content with the way things are because you as an individual is getting by, I can understand. Just be aware that what you are content with is the idea that every American patriot and revolutionary fought for nothing.
God forbid we should ever be twenty years without such a rebellion.
The people cannot be all, and always, well informed. The part which is
wrong will be discontented, in proportion to the importance of the facts
they misconceive. If they remain quiet under such misconceptions,
it is lethargy, the forerunner of death to the public liberty. ...
And what country can preserve its liberties, if it's rulers are not
warned from time to time, that this people preserve the spirit of
resistance? Let them take arms. The remedy is to set them right as
to the facts, pardon and pacify them. What signify a few lives lost
in a century or two? The tree of liberty must be refreshed from
time to time, with the blood of patriots and tyrants.
It is its natural manure.
~Thomas Jefferson
The answers are meaningless if we are asking the wrong questions about how things work.
Computers are useless. They can only give us answers. - Pablo Picasso
Answers to our present situation have been given by so many people over and over. It is time for some new questions, and begin to challenge the things we take for granted. I have generally been a big fan of small government, but looking at what appears to me as the real problem, our government is powerless. The government only appears powerful as attempts are made at eliminating privacy and other rights.

Power is the ability to get things done, not simply an ability to oppress. To trust the government may seem a dangerous thing to do, but I do believe they may have our best interests better than a bunch of foreign bankers. Hell, just look at what the domestic banks are doing.

Eliminate usury and give the power to the government to make interest and debt free direct investment and we will see a government with the power to do good, and beginnings of a real economy.

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