Category Archives: Debt

QE Forever: The Fed’s Dramatic About-face

“Quantitative easing” was supposed to be an emergency measure. The Federal Reserve “eased” shrinkage in the money supply due to the 2008-09 credit crisis by pumping out trillions of dollars in new bank reserves. After the crisis, the presumption was that the Fed would “normalize” conditions by sopping up the excess reserves through “quantitative tightening” (QT) – raising interest rates and selling the securities it had bought with new reserves back into the market.

The Fed relentlessly pushed on with quantitative tightening through 2018, despite a severe market correction in the fall. In December, Fed Chairman Jerome Powell said that QT would be on “autopilot,” meaning the Fed would continue to raise interest rates and to sell $50 billion monthly in securities until it hit its target. But the market protested loudly to this move, with the Nasdaq Composite Index dropping 22% from its late-summer high.

Worse, defaults on consumer loans were rising. December 2018 was the first time in two years that all loan types and all major metropolitan statistical areas showed a higher default rate month-over-month. Consumer debt – including auto, student and credit card debt – is typically bundled and sold as asset-backed securities similar to the risky mortgage-backed securities that brought down the market in 2008 after the Fed had progressively raised interest rates.

Chairman Powell evidently got the memo. In January, he abruptly changed course and announced that QT would be halted if needed. On February 4th, Mary Daly, president of the Federal Reserve Bank of San Francisco, said they were considering going much further. “You could imagine executing policy with your interest rate as your primary tool and the balance sheet as a secondary tool, one that you would use more readily,” she said. QE and QT would no longer be emergency measures but would be routine tools for managing the money supply. In a February 13th article on Seeking Alpha titled “Quantitative Easing on Demand,” Mark Grant wrote:

If the Fed does decide to pursue this strategy it will be a wholesale change in the way the financial system in the United States operates and I think that very few institutions or people appreciate what is taking place or what it will mean to the markets, all of the markets.

The Problem of Debt Deflation

The Fed is realizing that it cannot bring its balance sheet back to “normal.” It must keep pumping new money into the banking system to avoid a recession. This naturally alarms Fed watchers worried about hyperinflation. But QE need not create unwanted inflation if directed properly. The money spigots just need to be aimed at the debtors rather than the creditor banks. In fact, regular injections of new money directly into the economy may be just what the economy needs to escape the boom and bust cycle that has characterized it for two centuries. Mark Grant concluded his article by quoting Abraham Lincoln:

The Government should create, issue, and circulate all the currency and credits needed to satisfy the spending power of the Government and the buying power of consumers. By the adoption of these principles, the taxpayers will be saved immense sums of interest. Money will cease to be master and become the servant of humanity.

The quote is apparently apocryphal, but the principle still holds: new money needs to be regularly added to the money supply to avoid an overwhelming debt burden and allow the economy to reach its true productive potential. Regular injections of new money are necessary to avoid something economists fear even more than inflation – the sort of “debt deflation” that took down the economy in the 1930s.

Most money today is created by banks when they make loans. When overextended borrowers pay down old loans without taking out new ones, the money supply “deflates” or shrinks. Demand shrinks with it, and businesses lacking customers close their doors, in the sort of self-feeding death spiral seen in the Great Depression.

As Australian economist Steve Keen observes, today the level of private debt is way too high, and that is why so little lending is occurring. But mainstream economists consider the rate of growth of debt to be irrelevant to macroeconomic policy, because lending is thought to simply redistribute spending power from savers to investors. Conventional economic theory says that banks are merely intermediaries, recirculating existing money rather than creating spending power in their own right. But this is not true, says Prof. Keen. Banks actually create new money when they make loans. He cites the Bank of England, which said in its 2014 quarterly report:

[B]anks do not act simply as intermediaries, lending out deposits that savers place with them, and nor do they ‘multiply up’ central bank money to create new loans and deposits. . . .

In the modern economy, most money takes the form of bank deposits. But how those bank deposits are created is often misunderstood: the principal way is through commercial banks making loans. Whenever a bank makes a loan, it simultaneously creates a matching deposit in the borrower’s bank account, thereby creating new money.

Loans create deposits, and deposits make up the bulk of the money supply. Money today is created by banks as a debt on their balance sheets, and more is always owed back than was created, since the interest claimed by the banks is not created in the original loan. Debt thus grows faster than the money supply. When overextended borrowers quit taking out the new loans needed to repay old loans, the gap widens even further. The result is debt deflation – a debt-induced reduction in the new money needed to stimulate economic activity and growth. Thus the need for injections of new money to fill the gap between debt and the money available to repay it.

However, the money created through QE to date has not gone to the consuming public, where it must go to fill this gap. Rather, it has gone to the banks, which have funneled it into the speculative financialized markets. Nomi Prins calls this “dark money” – the trillions of dollars flowing yearly in and around global stock, bond and derivatives markets generated by central banks when they electronically fabricate money by buying bonds and stocks. She writes, “These dark money flows stretch around the world according to a pattern of power, influence and, of course, wealth for select groups.” She shows graphically that the rise in dark money is directly correlated with the rise in financial markets.

QE has worked to reverse the debts of the banks and to prop up the stock market, but it has not relieved the debts of consumers, businesses or governments; and it is these debts that will trigger the sort of debt deflation that can take the economy down. Keen concludes that “no amount of exhorting banks to ‘Intermediate’ will end the drought in credit growth that is the real cause of The Great Malaise.” The only way to reduce the private debt burden without causing a depression, he says, is a Modern Debt Jubilee or People’s Quantitative Easing.

QE-funded Debt Relief

In antiquity, as Prof. Michael Hudson observes, debts were routinely forgiven when a new ruler took the throne. The rulers and their advisors knew that debt at interest grew faster than the money supply and that debt relief was necessary to avoid economic collapse from an overwhelming debt overhang. Economic growth is arithmetic and can’t keep up with the exponential growth of debt growing at compound interest.

Consumers need that sort of debt relief today, but simply voiding out their debts as was done in antiquity will not work because the debts are not owed to the government. They are owed to banks and private investors who would have to bear the loss. The alternative suggested by Keen and others is to fill the debt gap with a form of QE dropped not into bank reserve accounts but digitally into the bank accounts of the general public. Debtors could then use the money to pay down their debts. In fact, Keen says it should go first to pay down debts. Non-debtors would receive a cash injection.

Properly managed, these injections need not create inflation. (See my earlier article here.) Money is created as loans and extinguished when they are paid off, so the money used to pay down debt would be extinguished along with the debt. And the cash injections not used to pay down debt would just help fill the gap between real and potential productivity, allowing demand and supply to rise together, keeping prices stable.

A regular injection of money into personal bank accounts has been called a “universal basic income,” but better would be to call it a “national dividend” – something all citizens are entitled to equally, without regard to economic status or ability to work. It would serve as a safety net for people living paycheck to paycheck, but the larger purpose would be as economic policy to stimulate demand and productivity, keeping the wheels of industry turning.

Money might then indeed become a servant of humanity, transformed from a tool of oppression into a means of securing common prosperity. But first the central bank needs to become a public servant. It needs to be made a public utility, responsive to the needs of the people and the economy.

• This article was first published on Truthdig.com.

Universal Basic Income Is Easier Than It Looks

Calls for a Universal Basic Income have been increasing, most recently as part of the Green New Deal introduced by Rep. Alexandria Ocasio-Cortez (D-NY) and supported in the last month by at least 40 members of Congress. A Universal Basic Income (UBI) is a monthly payment to all adults with no strings attached, similar to Social Security. Critics say the Green New Deal asks too much of the rich and upper-middle-class taxpayers who will have to pay for it, but taxing the rich is not what the resolution proposes. It says funding would primarily come from the federal government, “using a combination of the Federal Reserve, a new public bank or system of regional and specialized public banks,” and other vehicles.

The Federal Reserve alone could do the job. It could buy “Green” federal bonds with money created on its balance sheet, just as the Fed funded the purchase of $3.7 trillion in bonds in its “quantitative easing” program to save the banks. The Treasury could also do it. The Treasury has the constitutional power to issue coins in any denomination, even trillion dollar coins. What prevents legislators from pursuing those options is the fear of hyperinflation from excess “demand” (spendable income) driving prices up. But, in fact, the consumer economy is chronically short of spendable income, due to the way money enters the consumer economy. We actually need regular injections of money to avoid a “balance sheet recession” and allow for growth, and a UBI is one way to do it.

The pros and cons of a UBI are hotly debated and have been discussed elsewhere. The point here is to show that it could actually be funded year after year without driving up taxes or prices. New money is continually being added to the money supply, but it is added as debt created privately by banks. (How banks rather than the government create most of the money supply today is explained on the Bank of England website here.) A UBI would replace money-created-as-debt with debt-free money – a “debt jubilee” for consumers – while leaving the money supply for the most part unchanged; and to the extent that new money was added, it could help create the demand needed to fill the gap between actual and potential productivity.

The Debt Overhang Crippling Economies

The “bank money” composing most of the money in circulation is created only when someone borrows, and today businesses and consumers are burdened with debts that are higher than ever before. In 2018, credit card debt alone exceeded $1 trillion, student debt exceeded $1.5 trillion, auto loan debt exceeded $1.1 trillion, and non-financial corporate debt hit $5.7 trillion. When businesses and individuals pay down old loans rather than taking out new loans, the money supply shrinks, causing a “balance sheet recession.” In that situation, the central bank, rather than removing money from the economy (as the Fed is doing now), needs to add money to fill the gap between debt and the spendable income available to repay it.

Debt always grows faster than the money available to repay it. One problem is the interest, which is not created along with the principal, so more money is always owed back than was created in the original loan. Beyond that, some of the money created as debt is held off the consumer market by “savers” and investors who place it elsewhere, making it unavailable to companies selling their wares and the wage-earners they employ. The result is a debt bubble that continues to grow until it is not sustainable and the system collapses, in the familiar death spiral euphemistically called the “business cycle.” As economist Michael Hudson shows in his 2018 book And Forgive Them Their Debts, this inevitable debt overhang was corrected historically with periodic “debt jubilees” – debt forgiveness – something he argues we need to do again today.

For governments, a debt jubilee could be effected by allowing the central bank to buy government securities and hold them on its books. For individuals, one way to do it fairly across the board would be with a UBI.

Why a UBI Need Not Be Inflationary

In a 2018 book called The Road to Debt Bondage: How Banks Create Unpayable Debt, political economist Derryl Hermanutz proposes a central-bank-issued UBI of one thousand dollars per month, credited directly to people’s bank accounts. Assuming this payment went to all US residents over 18, or about 241 million people, the outlay would be close to $3 trillion annually. For people with overdue debt, Hermanutz proposes that it automatically go to pay down those debts. Since money is created as loans and extinguished when they are repaid, that portion of a UBI disbursement would be extinguished along with the debt.

People who were current on their debts could choose whether or not to pay them down, but many would also no doubt go for that option. Hermanutz estimates that roughly half of a UBI payout could be extinguished in this way through mandatory and voluntary loan repayments. That money would not increase the money supply or demand. It would just allow debtors to spend on necessities with debt-free money rather than hocking their futures with unrepayable debt.

He estimates that another third of a UBI disbursement would go to “savers” who did not need the money for expenditures. This money, too, would not be likely to drive up consumer prices, since it would go into investment and savings vehicles rather than circulating in the consumer economy. That leaves only about one-sixth of payouts, or $500 billion, that would actually be competing for goods and services; and that sum could easily be absorbed by the “output gap” between actual and forecasted productivity.

According to a July 2017 paper from the Roosevelt Institute called “What Recovery? The Case for Continued Expansionary Policy at the Fed”:

GDP remains well below both the long-run trend and the level predicted by forecasters a decade ago. In 2016, real per capita GDP was 10% below the Congressional Budget Office’s (CBO) 2006 forecast, and shows no signs of returning to the predicted level.

The report showed that the most likely explanation for this lackluster growth was inadequate demand. Wages have remained stagnant; and before producers will produce, they need customers knocking on their doors.

In 2017, the US Gross Domestic Product was $19.4 trillion. If the economy is running at 10% below full capacity, $2 trillion could be injected into the economy every year without creating price inflation. It would just generate the demand needed to stimulate an additional $2 trillion in GDP. In fact, a UBI might pay for itself, just as the G.I. Bill produced a sevenfold return from increased productivity after World War II.

The Evidence of China

That new money can be injected year after year without triggering price inflation is evident from a look at China. In the last 20 years, its M2 money supply has grown from just over 10 trillion yuan to 80 trillion yuan ($11.6T), a nearly 800% increase. Yet the inflation rate of its Consumer Price Index (CPI) remains a modest 2.2%.

Why has all that excess money not driven prices up? The answer is that China’s Gross Domestic Product has grown at the same fast clip as its money supply. When supply (GDP) and demand (money) increase together, prices remain stable.

Whether or not the Chinese government would approve of a UBI, it does recognize that to stimulate productivity, the money must get out there first; and since the government owns 80% of China’s banks, it is in a position to borrow money into existence as needed. For “self-funding” loans – those that generate income (fees for rail travel and electricity, rents for real estate) – repayment extinguishes the debt along with the money it created, leaving the net money supply unchanged. When loans are not repaid, the money they created is not extinguished; but if it goes to consumers and businesses that then buy goods and services with it, demand will still stimulate the production of supply, so that supply and demand rise together and prices remain stable.

Without demand, producers will not produce and workers will not get hired, leaving them without the funds to generate supply, in a vicious cycle that leads to recession and depression. And that cycle is what our own central bank is triggering now.

The Fed Tightens the Screws

Rather than stimulating the economy with new demand, the Fed has been engaging in “quantitative tightening.” On December 19, 2018, it raised the fed funds rate for the ninth time in 3 years, despite a “brutal” stock market in which the Dow Jones Industrial Average had already lost 3,000 points in 2-½ months. The Fed is still struggling to reach even its modest 2% inflation target, and GDP growth is trending down, with estimates at only 2-2.7% for 2019. So why did it again raise rates, over the protests of commentators including the president himself?

For its barometer, the Fed looks at whether the economy has hit “full employment,” which it considers to be 4.7% unemployment, taking into account the “natural rate of unemployment” of people between jobs or voluntarily out of work. At full employment, workers are expected to demand more wages, causing prices to rise. But unemployment is now officially at 3.7% – beyond technical full employment – and neither wages nor consumer prices have shot up. There is obviously something wrong with the theory, as is evident from a look at Japan, where prices have long refused to rise despite a serious lack of workers.

The official unemployment figures are actually misleading. Including short-term discouraged workers, the rate of US unemployed or underemployed workers as of May 2018 was 7.6%, double the widely reported rate. When long-term discouraged workers are included, the real unemployment figure was 21.5%. Beyond that large untapped pool of workers, there is the seemingly endless supply of cheap labor from abroad and the expanding labor potential of robots, computers and machines. In fact, the economy’s ability to generate supply in response to demand is far from reaching full capacity today.

Our central bank is driving us into another recession based on bad economic theory. Adding money to the economy for productive, non-speculative purposes will not drive up prices so long as materials and workers (human or mechanical) are available to create the supply necessary to meet demand; and they are available now. There will always be price increases in particular markets when there are shortages, bottlenecks, monopolies or patents limiting competition, but these increases are not due to an economy awash with money. Housing, healthcare, education and gas have all gone up, but it is not because people have too much money to spend. In fact, it is those necessary expenses that are driving people into unrepayable debt, and it is this massive debt overhang that is preventing economic growth.

Without some form of debt jubilee, the debt bubble will continue to grow until it can again no longer be sustained. A UBI can help correct that problem without fear of “overheating” the economy, so long as the new money is limited to filling the gap between real and potential productivity and goes into generating jobs, building infrastructure and providing for the needs of the people, rather than being diverted into the speculative, parasitic economy that feeds off them.

This article was first published on Truthdig.com

Capitalism, Empire, and the Infernal Gloom Machine

Depression is built into this machine and the evidence is plastered on the morose faces of people caught in the clutches of its business as usual activities. Depression is found in the insurmountable debts we owe for spending a lifetime of preparation and labor to serve the machine. In addition to debt, the machine awards us for our servitude with trinkets, gadgets, doodads and gizmos that provide a moment of hollow amusement and then sit on shelves in garages and decay. They represent the planned obsolescence of the human heart. The sacrifice paid for our fetish with materialism is the actual quality of our lives.

The gloom machine tells us the quality of our lives is defined by the machine in the driveway, and the machine that flushes away our excrement, and the machine that chills the tortured slaughtered animal flesh for later consumption, and the machine that flashes pornographic images and supplies numbers detailing how much we are liked by our so called friends. But to us humans it seems that quality of life is more appropriately measured in the amount of disposable time we have to pursue that which we want, and the quality of the community around us, and living without being chronically stressed with threats of being displaced from the land upon which we live for not working hard enough for the machine.

Depression is waking up at 6 in the morning in darkness to sit in traffic for an hour to arrive at a job that we don’t want to be at, only to serve the machinations of people with nothing but greed in their overstuffed bellies. And we go to these jobs so that we can pay rents that are unaffordable, and to service debt we’ll never escape, and we go home in darkness to our lonely lives in places where community is absent with a view of an equally lonely tree or a man-made retention pond which is an upgrade over the view of staring directly at your neighbor’s domicile. Depression is the realization there is no vacation on the horizon, no respite, just more of the same. Depression is knowing that such a life is better than many others have it.

Depression is recognizing the cynics were right about this society, that Cohen spoke truth when he sullenly moaned:

Everybody knows that the dice are loaded
Everybody rolls with their fingers crossed
Everybody knows the war is over
Everybody knows the good guys lost
Everybody knows the fight was fixed
The poor stay poor, the rich get rich
That’s how it goes
Everybody knows

Depression is watching art die. The surrealist, the bohemian, the rock ’n roll, and the anti-authoritarian soul has lain down and pledged fealty to the dollar. For money, they’re now all willing to become ready made predictable cubes to be packaged and sold in plastic wrap placed in cleverly designed boxes which deliver to the depressed public what they want, more of something that’s pretty on the outside and vacant within. We are left with monthly subscriptions of more tales of self aggrandizement for the throngs of temporarily embarrassed millionaires.

Depression is watching the worst of us rise to legitimacy and awarded iniquitous riches for it. The popular is depressive, musical hack Cardi B sings about her money money money and she is loved. Jordan Peterson sells cheap self help stolen from better written material decades ago amalgamated with misogyny and dictates of hierarchal subjugation and becomes wildly popular. Trump purveys hatred of people of color and a love of authoritarianism and the depressive people, oh do they eat it up. This is sickness, depressive sickness.

Depression is acceptance of the violent now. The grossly unhappy men with their armaments spread their gloom and horror across the planet and claim righteousness for doing so. Depression is watching society applaud murderous hearts for their crimes who don badges and camouflage and have holidays to celebrate their violent history, while villains are made of those who simply don’t want to stand up for songs of oppression. Thank you for your service to the machine.

Depression is watching notions of resistance and revolution take form in slightly altered subservience. The great reformation desired now is for a “green new deal” that doesn’t come close to mitigating the impending culling of humanity from soon to be ecological catastrophes. Their plans offer only more endless work at the behest of the gloom machine while promising healthcare that will never happen, less debt it will also never deliver, and affordable housing that still won’t solve homelessness. They don’t want to break the machine, just tweak it, and they lack the ability to do that even. Never have I borne witness to such eager slaves and such depressive aspirations. The people seem to adore their cubicle lives, their environmental destruction, their corporations, their debts, their corrupt leaders, their prisons, their banks, and their taxes.

They want to continue to be put to work under the thumb of the status quo western civilization authoritarian mind and this is all the depressed mentally dominated masses can think of as a possible improvement. Instead of wanting to taste real liberty and be actual equals, their dreams are limited to being better treated servants. The gloom machine chugs along fueled with dimwitted ideas sold by boxed-in thinkers without any possibility of escaping the darkness, rather simply offering a more cushy seat for viewing the end of everything.

The machine bellows out demanding more, more, you owe me more, and somehow those wearing red, white, and blue agree and celebrate the demands of the machine. These debts we owe are servitude. The numbers held in digital machines are immoral which demand one must wake up to a dreary existence to do more of what is killing our souls along with the flora and fauna around us.

Depression is the downtrodden plebs who celebrate their corrupt democracy, which is in reality a thinly veiled oligarchy that should be obvious to all. They prop up a system of voting that allows the election of the presidency, a position that shouldn’t exist in the first place in an egalitarian society, to be awarded to candidates who don’t capture the most votes. What little democracy there is in a representative system is lost in totality when the winner of elections need not win the majority of votes. The gloom machine is straight up tyranny.

A non-depressed society would reject being served faux democracy. They’d reject a system absent of reason or compassion and disdain would be for ideas of continuing to support such a destructive way of being. But instead, within the gloom machine shame is reserved for those who don’t want to take part in the busted system, and it venerates those who cast votes for imperialist conquerers and planet destroyers, and those voters are lauded as doing their civic duty for taking part in open public corruption.

Depression is the insincere know it all crowd who are incapable of honest debate and have rarely endeavored to open a book of substance or engage in critical thought, but they know trivialities which they mistake as facts and wisdom. They know arrogance well and emanate it with aplomb. They know how to believe all they see in the corporatized media, but thinking without boundaries or limitations is beyond their capacity. This is not even depression, this is tragedy.

Depression is watching the trees be plowed down for more tract housing, a portion of which will sit empty for years because no one can afford to move there, and even if they could it’s a heinous boring life that awaits which is only significantly better compared to being homeless. Depression is knowing this is the reason why we are rapidly destroying our habitable environment and commencing a 6th mass extinction event which is now accelerating.

Depression is to know there is nothing we can do to stop the country we live in from mercilessly killing innocent people all over the world for no reason other than more economic expansion and our sadistic ideas of exceptionalism that entail spreading pain and hardship so a few elites can have more of what they already have more than enough of.

Depression is the powerlessness to change anything of significance. There is no other way they say other than the desolate gloom machine, they say this is how it must be. And so we remain here waiting for the horror that is soon to approach us all as the gloom descends in ever quickening waves.

A zombified indoctrinated populace can see no other way than capitalism and beating each other over the heads to satiate egos in needless competition that is unnecessary for survival and deleterious to the common good. Capitalism is the primary tool of empire, and a word that should be synonymous with depression. It’s the accumulation of resources in an effort to gain more power in man-made markets to leverage that power over other people and get them to do what the person with the most power desires. Capitalism’s depressing ideology is defined by the lecherous desire for more for the sake of it so the winner can pound their simian chest in victorious celebration of the devastation they’ve created.

Capitalism is inherently unsustainable due the way it allows power to coalesce via the leveraging abilities given to money to buy land, the means of production, elections, and advertising. It allows the whims of the few to overrun the needs of the many where those with the worst intentions aspire to gain more than others because they will attempt to fill the void in their hearts with self importance expressed via power over others. This is why it cannot be used.

If there is no central currency or advantage to collecting huge amounts of resources then the motivation to hoard would evaporate, as those resources would simply rot or become a burden to maintain. There’s no fun in that kind of hoarding. The “fun” comes to the simpleton power seeker when they acquire power to make others do what they want and thus gain the ephemeral validation they so desperately seek.

If one runs the math on players competing for money at different rates of gain over a certain amount of time, there will be a doubling effect which becomes exponential. And this effect will accelerate as it plunders along due to gains in leverage which allows for ever greater amounts of money to be made at faster rates. Eventually it always ends the way a game of monopoly ends, someone has all the power and everyone else is subservient to that entity/person.

These dour thoughts manifest from the recognition of the stranglehold empire has over our lives. The depression is the result of the myriad of expectations I can’t let go of that wants to see a kinder more egalitarian and sustainable world emerge while knowing how unlikely it is. Our collective depression is rooted in the foundations of social hierarchy and its economic tools of control, and understanding what a perfect trap it is, and so it goes, and everyone doesn’t know, but they feel it, though.

Forgive them their debts as they forgive those…

It is “budget time” again!

That is the season when the persons displayed on television screens as representatives of those who have no representation engage in the theatrical display of subordination to those who actually own things, like the countries we happen to inhabit. Although there have been a few publicised investigations and even some occasional criminal charges against (usually septuagenarians) some conspicuous miscreants, there has been no action which could restore some health or sanity to what most of us consider the daily economy. In some countries, like where I live, people go on strike. There is little indication that the fundamental message of the strikers gets heard. Perhaps that is also why the television seems obsessed with the marketing of hearing aids. There is a hearing aid for every occasion, except sessions of the national assembly, where such technology might really help.

One way of dealing with the hearing impaired is repetition. In scientific terms this means increasing the rate of signal in proportion to noise in the hope that the essential message is received. Although I wrote a version of this paper in 2014, four years later I cannot help feeling some repetition would do no harm. If every budget season one has to listen to the same set of distortions, then it is only fair to reproduce the corrections.

Like the absurd climate debate, which never includes the “carbon footprint” of the largest military machines, the budget debates (essentially interchangeable) never discuss the cost of subsidising international banks and corporations to facilitate their extraction of wealth from the national economy. There is no intelligent, let alone honest, discussion of what is meant by “public debt”—or why the taxpayers must bear losses to guarantee tax-exempt profits for investors.

I always ask myself when someone says or writes “loss”, where did the money go? Even when a ship is lost at sea there is generally wreckage. Of course, the ocean is bigger than the economy and it is possible that a ship’s remains disappear beyond recovery. The price of abandoning the very modest social gains of the New Deal in the US and social democracy in Europe with the ascendancy of Margaret Thatcher and Ronald Reagan has been enormous, not only for US and European working people but, for the rest of the world. In fact, the meter is still running with no indication of when it will stop.

The crisis no one cares to talk about any more comprises trillions in losses. If these losses are real, then that means the value has been forfeited in favour of someone else. E.g. after the Great War France and Britain were essentially bankrupt: they owed nearly everything to US banks. Without economic manipulation, war and terror, India would probably have occupied the same status vis a vis Great Britain in 1945 that Brazil gained vis a vis Portugal after the Napoleonic Wars. The claims against the productive capacity and assets of Old Europe were held by identifiable third parties, representing, then as now, a tiny band of bankers. Of course, those claims were so great that no normal income streams from taxation could satisfy them. Control of Britain was effectively ceded to the US, while India was wracked by civil war rather than collecting the wartime debt Britain owed to her.

The other meaning of loss is the inability to sustain a certain valuation of an asset or income stream. The nature of the initial valuation is then the problem. The continuous attempts in the IFRS (international accounting standards) to skirt around the issue of essentially fraudulent valuation illustrates that even the private sector’s notion of “value”, whether book value or fair value, is the product of casuistry.

Since European “banking” was reorganised on the US Federal Reserve model by creation of the European Central Bank, it is instructive to consider how grand theft in the state-banking sector of the US functions. In other words, the “losses” hidden on the books of the USG banks, “Fannie” and “Freddie”, are either notional or they reflect claims that were satisfied in favour of third parties beyond the capacity of those institutions to generate income. Again we know who those third parties are. The “losses” are essentially sacrificed sovereignty.

Government institutions pledge to private persons (corporations and foreign exchange pirates) the State’s capacity to pay, derived from the ability to tax the working population, beyond any realistic possibility to extract that income. This was called “tax farming” in the bad old days of “colonialism”. Frequently punitive military force was sent into any country that was not delivering enough booty (aka interest on foreign debt). In fact, as retired general of US Marines infamously confessed that was his main job in the Corps—protecting corporate plunder.

This is essentially the same principle imposed through the ECB—except that some nominal account has to be taken of national political systems. Since in Europe the State was far more frequently the owner of capital infrastructure, absorbing the cost of its operation and regulating labour as civil servants, considerable ideological work had to be performed to cultivate the generation, which privatised most of the national capital assets held by European states. The fact that since 1945 the US has controlled the international payments system has reduced the need for military intervention. Decisions taken in New York, London, Frankfurt or Brussels can deprive a country of any affordable means to engage in the most basic financial transactions. The entities involved are privately owned and therefore cannot be coerced except by measures that would “threaten private property”.

Just as the railroads and banks obtained control over most of the continental US by defrauding the US government in the 19th century, the surviving banks have defrauded most of the American population of its home equity today. Although it was established that a conspiracy of UK-based clearing banks illegally fixed the LIBOR/ EURIBOR rates, this had no serious consequences. If one considers very carefully that nearly all mortgage and commercial financing agreements base their interest computations on one of these benchmarks, the true scope of the fraud becomes apparent. Everyone who made an interest rate agreement assuming the “free market” condition of the underlying rate was cheated. It could be argued that the interest rate clauses of innumerable contracts were void due to fraud. A perusal of public debt instruments would no doubt reveal even more catastrophic deception.

The endless wars, funded by plundering the public treasury and the wealth of other countries, are part of that income extraction, too. Now the US government and those of its vassals are little more than one large mercenary enterprise, together as NATO, the most heavily armed collection agency on behalf of third party creditors on the planet. It does not matter who occupies the mansion at 1600 Pennsylvania Avenue.

Of course, there is plausible denial for any of the beneficiaries of this plunder since populations weaned on soap operas and “crime drama” are incapable of examining, let alone comprehending, the most obvious operations of US corporations and their agents– who almost never appear as criminals on television. The “crime drama” narrative dominates almost every bandwidth on the critical spectrum and as a much younger US director, Michael Moore demonstrated in Bowling for Columbine, corporate crime does not make acceptable television. The most elemental sociological truths, plain to anyone who has ever belonged to a club or worked in middle management of a company, namely that “democratic” and “meritocratic” decisions are regularly subverted by scheming among the ambitious at the expense of the docile– become discredited when the insight is applied to the polity as a whole. People who do not think twice about making a phone call to a “friend” to influence a decision in their social club or place of employment, become incredulous at the suggestion that the chairman of a major investment bank would dictate policy to the head of state whose election he had financed.

In short, the debate about the current global economic “crisis” is obscenely counterintuitive and illogical to the point of incoherence. Who is willing to “follow the money”? This dictum, popularised in the Woodward and Bernstein fairy tale of US President Richard Nixon’s demise– All the President’s Men— appears utterly forgotten, despite recurring astronomic fraud perpetrated by US corporations since the so-called “S&L scandal”– crimes for which no more than a handful of people were indicted, let alone tried or sentenced. Only one corporation was deprived of its right to do business, Arthur Andersen, and this was patently done to spare all the politicians from the reigning US president, most of the US Congress, and untold state and local officials who had been bribed or otherwise influenced by Enron.

If the stories reported by Pete Brewton in 1992, the documented history of the OSS “China insurer” AIG, and the implications of the 2002 Powers Report on the Enron collapse are taken seriously, then Houston lies on a financial fault line more devastating than the San Andreas. That fault line runs from Texas through Virginia to the bedrock of Manhattan. The economic earthquakes that have persisted since 1980 are both literally and figuratively the result of deployment of the US atomic arsenal and the policies that gave rise to it. The US dollar’s continued, if fluctuating, strength as a reserve currency is based on drugs, weapons, and oil– all traded in US dollars. However, this material reality is also based on an ideological or dogmatic constitution. The seismic activity induced by US corporations created gaping holes in the global economy– holes which could only be breached by the financial instruments developed in the weapons laboratories of Wall Street based on the same conceptual models as the neutron bomb and today’s nano-munitions developed at Lawrence Livermore. Indeed, the theory has been almost universally accepted that people are always to blame for the problems of government and Business is the sole and universal solution to all problems. Hence tax monies will only be spent on weapons, war, and subsidies for corporations—the things Business needs.

A considerable obstacle to any change in the US, short of its destruction, is the fact that as Michael Hudson and former assistant Treasury secretary under Reagan, Paul Craig Roberts, write repeatedly, the US government has absolutely lost whatever legitimate function it may ever have had as an instrument of popular will. In other words, the efforts of working people, whether immigrant or ex-slave to remake the plutocratic regime of the 19th century into a State responsive to their needs were frustrated by the massive assaults on labour, combined with the ideological warfare of the “Progressive” movement. The latter, funded heavily by the newly created super-philanthropies, including those of Rockefeller, Sage, Peabody, and Carnegie, predated CIA-style front organizations and infiltration. They helped turn popular sovereignty movements into the kind of technocratic organisations which prevail today– dependent on corporate donations and led by the graduates of cadre schools like the Ivy League colleges, Oxford and the LSE. With few exceptions the only remnants of the “popular will” in the US are those that drive lynch mobs, reincarnated in “talk radio” today.

The main work of the USG and the corporations for which it stands has been to undermine any notion that the State is rightfully an expression of the popular will for the realisation of popular welfare. The State has been reduced to a protection racket. By the time Ronald Reagan, imitating Margaret Thatcher, pledged to “get government off the back of the people”, the only “people” who counted were corporations and those in thrall to them.

It is easy to forget that the US was actually founded on the basis of a kind of white (in that sense “enlightened”), oligarchic absolutism– the British parliamentary dictatorship minus hereditary monarch. Its moral vision predated the Thirty Years War and, until John Kennedy was elected president, its hypocrisy was that of Cromwellian fanatics. In revolutionary France and countries that were inspired by France, as opposed to the American independence war, struggle continued on the premises that the State is not the King (in whatever incarnation) but created by the citizens (not the possessive individual) for the maintenance of the common weal– including the nutrition, health, housing, education of its people. The opposition to destruction of the public sector or public services and the debate that continues in Greece, France, Italy, and to a lesser extent Germany, defies comprehension in North America and Great Britain because of some unfortunate residues of that revolutionary vision of the State so violently opposed by Britain and the US ever since 1789– except when the resulting instability provided business opportunities. (Thatcher did not restore the spirit of Churchill to power—but that of Wellington.)

Moreover as Coolidge once said, “the business of America is business”. If a policy or action of government cannot be expressed in terms of someone’s maximum private profit then it is indefensible in the US. The conditions of the Maastricht Treaty establishing the euro and the ECB are an attempt to impose those same ideological and political constraints on the European Union enforced by adoption of the Federal Reserve Act in the US. The Federal Reserve is essentially a technology for naturalising usury and endowing it with supernatural legitimacy. But just as it has been argued in some quarters that the US Federal Reserve triggered the Great Depression– for the benefit of the tiny bank of banking trusts– the European Central Bank, urged by the right-wing government in Berlin, is being pressured to follow the same rapine policies as the FED is pursuing today. Of course, there are other countries ruled by financial terrorism or where banking gangs have turned their entire arsenal against sovereign peoples.

The “Crisis” is not really about the “debt” or the heinous losses. It is a crisis of sovereignty. The failure of popular sovereignty means that a microscopic bacterial colony of the immeasurably rich can make war on the rest of the world, destroying the common weal and commerce at home and everything else abroad. Germany’s citizens have been bludgeoned since 1945 by Anglo-American propaganda and the occupation forces to persuade them that they– not the great banking and industrial cartels on both sides of the Atlantic– were responsible for Adolph Hitler’s rise to power. When in 1968, student leaders like Rudi Dutschke tried to remind Germans that their democracy was destroyed before Hitler’s putsch and that they had the right and opportunity to demand a democratic Germany after the war, those young people were harassed and even killed. (Dutschke was shot in the head by an unemployed labourer. That “lone” killer later died in prison with a plastic bag over his head.) Attempts to create a truly popular democratic government in Germany have been frustrated by foreign intervention since the French Revolution. Nevertheless people in Germany still believe that the State is there to provide services to the people– and not to fight wars to further foreign trade as suggested by Horst Köhler before he was relieved of his duties (ostensibly resigning) as German federal president.

There is no doubt in Germany that former Chancellor Schroeder’s refusal to follow the US into Iraq—whatever motivated it—enjoyed the widest support, even among those who tend to believe anything the US government says. The resignation of former IMF director and Federal President Köhler expressed the sensitivity of the situation then. On one occasion he referred to the great banking interests as “monsters” and then broke the silence on the German war efforts in Central Asia by explicitly articulating what had been Chancellor Merkel’s, silent but deadly policy of supporting US counter-terror in Afghanistan. Köhler was not opposed to the future escalation of German belligerence, but by his calling a spade a spade on national radio, the right-wing government in Berlin almost had to defend its unconstitutional deployment of German soldiers in public. Already that April Angela Merkel had been forced to sacrifice an army general and a cabinet minister when it became known that German combat aircraft were also bombing civilians like their US counterparts—and trying to keep the fact a secret.

In the midst of the financial crisis, that is the plunder and pillage of the accumulated reserves of Europe’s working population after those of the US are exhausted, it is impossible to ignore the restoration of Asian political and economic prominence. This process started in the 1960s when Britain and the US launched their wars to secure footholds and control of the vast resources of Indonesia and Indochina. Although only partly successful, the destruction of national independence movements throughout South Asia created the conditions for de-industrialising Europe and North America. Mistakenly much of the North American and European Left judged the losses in Korea and Vietnam as defeats for US power. Such judgments have been based on assessments of the official war aims and not on any analysis of the underlying corporate and financial policy objectives. The long-term results of those wars included creation of the massive debt system that is at the root of financial collapse for the majority of US Americans. Of course, China remains the great unconquerable threat to continuation of US hegemony. The balance of power in Asia may be very delicate indeed.

Continental Europe remained somewhat insulated from those seismic forces until 1989. The “velvet” invasion of Eastern Europe and the former Soviet Union led by US capital, aided as usual by the combined secret services and economic “consultants” of Shock Therapy, began the destruction of the economic base for European social democracy and “real socialism”. The debt machine created to exploit Eastern Europe was applied in Germany first– destroying the GDR and financing that destruction with EU-generated debt, culminating in the euro. Introduction of the euro effectively destroyed half of the purchasing power of working people in the Euro Zone overnight, creating the conditions for consumer borrowing which had prevailed in the US since the late 60s and eroding wages and benefits drastically.

The final loss of control over archaic legislative instruments (whether in the US or Europe) is not only assured by the system of bribery that turns those in office into indentured servants of corporations. Full investigation of the Enron scandal would have proven once and for all that there is almost no one in the US Congress not owned by some corporation. Similar conditions have come to prevail in European legislatures where for decades US academic and policy exchange programmes have trained the political class to work first and foremost for Business.

The loss is also assured by the now entrenched belief that the only legitimate human goal is individual personal profit. As Hudson has suggested, this is the “theology of the Chicago School”. Since Margaret Thatcher was appointed to convert Britain to that dogma, nearly the entire political, academic and “civil” culture has been saturated with people who cannot think in any other terms– even when they assert that they are still social democrats or democratic socialists. The latter insist that “social policy” is merely a palliative to prevent the poor and destitute from becoming unsightly spectres in urban entertainment centres. They all have become positivists– reifying the prevailing economic relations and worshipping quantitative methods– subordinating human agency to pseudo-science and thinly disguised opportunism. The only kindness this ethical standpoint can express is “charity”. Charity, however, has nothing to do with the common weal or the State as an embodiment of the popular will. In fact, it is just as parasitic as the belief from which it springs. If those whom John Pilger called “the new rulers of the world” consent to relieve us– that is to allow us anything resembling our dignity and subsistence wages– then it will scarcely exceed the infamous “dimes” with which John D. Rockefeller cloaked his cynicism in piety and charity. Nowhere is the cynicism more profound than in the expression “giving back”. Of course, the pennies “given back” are microscopic compared with the billions “taken” in the first place. But those shiny pennies and dimes are enough to keep embedded intellectuals loyal to Bill Gates or George Soros. For a few dollars more they will even protect the likes of Blankfein or Buffett.

“Charity” is the gratification a person finds when scratching a mosquito bite. One feels better while scratching– although this provides no relief. The cause of the itch is the substance injected by the mosquito while sucking the blood from its victim. Of course, some mosquitoes offer only token charity and the itch disappears. But there are mosquitoes that carry other parasites– the effects of their charity can last forever, or at least until the victim dies.

Housing Crisis, Mental Health Collective Breakdown, 9 am to 5 am Work!

The essential American soul is hard, isolate, stoic, and a killer. It has never yet melted.

― D.H. Lawrence, Studies in Classic American Literature

He who does not travel, who does not read,
who does not listen to music,
who does not find grace in himself,
she who does not find grace in herself,
dies slowly.

— Brazilian poet Martha Medieros

I work at a homeless veterans (and their families, and some have their emotional support animals here) transitional housing facility in Oregon. We get our money from a huge non-profit religious organization and from the federal government in the form of VA per diem payouts.

The job is tough, rewarding, never with a dull moment, and a microcosm of the disaster that capitalism pushes into every fiber of the American fabric of false adoration of a class dividing and racially scaled society.

Mostly after two-and three-year hitches in the Army, Navy, Marines and Air Force, these men and women are broken on many levels, but serve as emblematic examples of the masses of broken people this country’s top 19 or 20 percent make a killing on. The Point Zero Zero One Percent, the One Percenters and the 19 Percenters live off the 80 percent of us who have toiled for these masters of the capitalist universe and these Little Eichmanns and highly paid bureaucrats and middle managers and top brass in every industry possible (two-income earners making money in higher education, medicine, the law, pharmaceuticals, high tech, military industrial complex, judicial and criminal justice, and all the flimflam that is the retail and consumption class).

I have clients who never saw out-of-country battlefields, but these same veterans hands down have applied and sometimes have received service connected disability claims, from tinnitus to shin splits, bad discs in the back to Parkinson’s, from skin diseases to anxiety disorders, from PTSD to depression, and many, many more.

The problems abound, because these folk are virtually broken and spiritually disconnected, brainwashed by some mythological past, flooded with inertia, possibly never able to get their lives back. We can look at them in their section eight apartments, see them at the free meal joints for veterans, and we can listen to their complaints and then respond by throwing all our fury and recrimination onto them, admonishing them to get off their butts and work. Sounds good from a parasitic, penury capitalistic society of me-myself-and-I thinking, but in reality, these younger and older veterans are strafed with anxiety disorders, co-occurring mental health challenges, post-addiction disorders, and brains that have been calcified by many, many aspects of being in the military; then discharged, and then the entire landmine field of epigenetic realities anchored to what many of them call “broken and bloodied” family lives before hitching up.

Some of us know how to solve their homelessness problem, help with intensive healing, assist them in reintegrating into society: inter-generational communities, in micro-homes/tiny homes, with an intentional cooperative community housing set up with things to do . . . . Like growing food, working on construction projects, engaging in peer counseling, and coalescing around community engagement and co-op like business models.

How many plots of land exist in this PT Barnum Land? How many empty buildings are there in this Walmart Land? How many young and old would like to get off the hamster wheel and out of the machine to live a life worthy of spiritual and collective pacifism to grow a truly communitarian spirit.

Here we have this CryptoZionist VP Pence pledging to rebuild an Air Force base in Florida, Tyndall, for $1.5 billion and then spreading more hubris as we witness Pence and the Air Force brass (their felonious DNA locked into our corrupt military industrial complex) ask for more robbing of the tax till, when a hurricane we knew about weeks ahead of time, destroyed more than 17 Stealth aircraft worth (sic) $339 million each! No apologies, no public investigation, nothing!

You won’t hear on Democracy Now a strong case against building these jets in the first place, or a strong case for lopping off the heads of Generals and state senators, on down, for this Keystone Cop disaster. Up to $6 billion for these graft-ridden and spiritually empty examples (Stealth Baby and Old Man-Woman Killers) of America the Empire.

Daily, I struggle to get veterans accommodations for evictions or for property debts, as many have just failed to pay rents or mortgages because of the colluding forces of mental-physical-spiritual dysfunction created by what it is that makes broken people in general, but especially broken veterans who have some undeserved sense of entitlement. Daily, just attempting to get VA hospital treatment, or trying to have experts look at veterans’ amputated limbs and just getting appointments for prosthesis devices?

We are not in “new times” with a CryptoZionist brigade in office, or a filthy example of an individual as the leader of these follies. Nothing new in the New Gilded Age punishment caused by a small cabal of One Percenters who hold dominion over workers. Nothing new about the power of the media and entertainment game to brainwash compliant citizens. Nothing new about War Is a Racket principles (sic) driving our economy. Nothing new about white supremacy ruling Turtle Island. Nothing new about the Manifest Destiny Operating System ripping land, resources, people from indigenous homelands and other countries’ sovereignty. Nothing new in the great white hope tutoring other like-minded fellows in other countries on how to get one or two or a thousand “ups” on the powerless or disenfranchised peoples of their own countries.

Life for Third World (sic) peoples was bad under all the criminals we have voted into POTUS office for the past 250 years! Longer.

The big difference seems to be the passed on and learned helplessness, fear, bulwarking that has been seeded from generation to generation. The fact there are hyper Christians who support the hyper hedonistic, superficial, irreligious, criminally-minded, sexist, racist, loud mouth, intellectually challenged Trump may seem illogical. Oh, so much illogical braying in the world before the Trump seed spilled on this land. Imagine, Jews supporting white supremacists, anti-Semites. Imagine, Native Americans wrapping themselves in the US red-white-blue, and signing up for war-military in higher numbers than any other demographic group. No need to go apoplectic over women supporting Trump as if he is their daddy or Sugar Daddy. How many times in this country’s history have we had Women for Reagan, Women for Bush, Women for Clinton, Women for the Vietnam War?

Susan Sontag said it pretty clearly:

Of course, it’s hard to assess life on this planet from a genuinely world-historical perspective; the effort induces vertigo and seems like an invitation to suicide. But from a world-historical perspective, that local history that some young people are repudiating (with their fondness for dirty words, their peyote, their macrobiotic rice, their Dadaist art, etc.) looks a good deal less pleasing and less self-evidently worthy of perpetuation. The truth is that Mozart, Pascal, Boolean algebra, Shakespeare, parliamentary government, baroque churches, Newton, the emancipation of women, Kant, Marx, Balanchine ballets, et al., don’t redeem what this particular civilization has wrought upon the world. The white race is the cancer of human history; it is the white race and it alone — its ideologies and inventions — which eradicates autonomous civilizations wherever it spreads, which has upset the ecological balance of the planet, which now threatens the very existence of life itself. What the Mongol hordes threaten is far less frightening than the damage that western ‘Faustian’ man, with his idealism, his magnificent art, his sense of intellectual adventure, his world-devouring energies for conquest, has already done, and further threatens to do.

To be honest, the insanity of the white race is also what I am concerned with in Sontag’s (RIP) polemic. That pejorative “crazy” seems apropos for the white race, if one were to look at the way this country’s leaders and movers and shakers play the game and push their destructiveness on the rest of the world. They are all white!

Crazy watching the Kavanaugh hearings. Crazy reading the World Socialist Web Site hit after hit on any woman fighting the scourge of sexual harassment, sexual assault, rape!

This David Walsh gets it all wrong, deploying simplistic “blame the victim” mentality, and then using “witch hunts” accusations to buttress his absurd essay’s thesis. This article is an example of low level white writer crazy:

The ostensible aim of this ongoing movement is to combat sexual harassment and assault, i.e., to bring about some measure of social progress. However, the repressive, regressive means resorted to—including unsubstantiated and often anonymous denunciations and sustained attacks on the presumption of innocence and due process—give the lie to the campaign’s “progressive” claims. Such methods are the hallmark of an anti-democratic, authoritarian movement, and one, moreover, that deliberately seeks to divert attention from social inequality, attacks on the working class, the threat of war and the other great social and political issues of the day.

Instead of bringing about an improvement in conditions, in fact, the #MeToo movement has helped undermine democratic rights, created an atmosphere of intimidation and fear and destroyed the reputations and careers of a significant number of artists and others. It has taken its appropriate place in the Democratic Party strategy of opposing the Trump administration and the Republicans on a right-wing footing.

The sexual hysteria has centered in Hollywood and the media, areas not coincidentally where subjectivism, intense self-absorption and the craving to be in the limelight abound.

Comments back at the author’s “hysteria” analysis are not worthy of recrimination, for sure, but if you scroll down in the WSWS comments section for this piece, have at it: the continued craziness of white thought, white attitudes and white actions. It’s a long essay, and this man’s conclusions are all over the place, indicting anyone who aligns himself or herself with the #MeToo movement. Blames #MeToo (using current polls) for aiding and abetting an upsurge in misogynistic thinking, where these vaunted white man’s polls say more Americans one year later after #MeToo are skeptical in larger numbers about allegations of sexual harassment coming from anyone. Blame #MeToo, so-called socialist David.  Polls, oh those pollsters, oh Mr. Walsh states that #MeToo activists should be involved in other things, like the plight of working class men and women, or stopping the apocalyptic brinkmanship played out by Trump with toy nuclear weapons. Etc., etc.

It makes sense that we have silos in the social justice, criminal injustice, environmental-economic-equity movements. So much easier to tackle one bad bill or vote or crazy politician in your neck of the woods than to grasp the totality of how broken, mean, murderous, monstrous this country’s policies are! And, reality check – the white race is crazy. You see it in Nazi German, in Europe today, in Israel, in the USA, in Canada, in Australia.

Yet the broken systems, the insanity of even considering a series of social nets being frayed, chopped and burned by the One Percent’s minions in political office and finance – how insane is it that social security is on the chopping block, that there is no single payer health plan, that there is no public transportation, that the commons are being razed, raped and contaminated? How insane is it to “let” lead flow in public water system pipes (Flint, Portland, et al); or that pesticides rule the micro-world of future generations, where brain stems are permanently damaged; or how insane is it to allow a good chunk of young people to come into the world with diabetes, or riddled with on-the-spectrum diseases . . . or full of ticks and physical ailments in the name of Big Ag/Big Energy/Big Chem/Big Med/Big Tech ruling the land?

Insanity is a race that hawks chemicals of death, that inculcates punishments and fines and levies and taxes and penalties and surcharges and charges and fees and tolls and taxes and tickets and defaults and foreclosures and balloon rates and eminent domain decisions and impoundments and confiscations and seizures on their own people?

Daily, Portland (three counties, and then just north, Clark County, WA) is an example of this white insanity — unchecked growth, unchecked rent hikes, unchecked cost of living busting more and more people, unchecked home costs rising, unchecked traffic and bureaucratic gridlock, constant punishment for the downtrodden, homeless, poor. How insane is it to have students of nursing programs living in their cars while attending classes (Portland Community College, et al)? How insane is it that the Portland police bureau can charge non-profits thousands of dollars for public records, our own records?

The system is rigged, and it’s a white system of lawsuit after lawsuit! Death by a thousand fines and spiritual-mental-physical cuts!

Until the system is so broken you have millions of social workers like myself attempting to figure out how to save one life at a time, all broken lives products of the insane white culture, their own insane (crazy) leaders, family members, bosses and communities?

Order and Progress was Never a Civilian Slogan

The apparent victory of Jair Bolsonaro in the 2018 Brazilian presidential elections has been analysed as the return of some kind of fascism to Brazil: electing dictators where they previously had to enter office in tanks. However, Brazilians, unlike Portuguese, did not remove their dictators from power. The Brazilian military gave way to its civilian counterparts. A governing structure was created in 1986, which permitted the discrete withdrawal of uniformed personnel from public offices and public liability for the consequences of their acts. However, it did not end the role of the military in ruling Brazil. For both historical and ideological reasons this was not necessary.

The military-technocratic tradition in Brazil is as old as the founding of the republic.1 That was one reason why the Brazilian military so readily accepted the same “national security ideology” that the US propagated in its cadre institutions like the National Defence College/University, the curriculum of which was largely imitated by the Superior War College in Brazil. The “military” in Brazil is best understood as the elite managers of the republic’s military – industrial – technological complex, one of the products to survive the dictatorship.

Although certainly not an accident, the anointment of Bolsonaro as a saviour in Brazil’s time of troubles, is incidental. His appearance and election (unless something utterly unexpected happens on 28 October) should be understood within Brazil’s ancient domestic political culture and the subordination of the Brazilian military in the widest sense of the term to the hemispheric national security ideology that has prevailed since its formulation in the late 1940s.

Comparisons with Trump are distractions, like the attacks on Trump. They draw attention away from the actual power issues involved and who actually wields power.

Bolsonaro’s election cannot be fully understood without an international perspective. Brazil, although a very large country with an enormous economy, is a very closely held property dominated by a tiny elite with more loyalty to the North American elite than to its own national interests. It has always been a subordinate country in the hemisphere although the mechanisms of subordination have changed over time. Unlike in the US, Brazilian elections are actively manipulated by foreign governments. Brazilian media are even more concentrated than in the US, with Globo occupying virtual monopoly control over every media outlet in Brazil not controlled by a US conglomerate.

Yet there has always been a tension between pro-US and nationalistic factions in Brazil’s elite. The only mass political base ever established in Brazil — prior to the PT — was the Vargas regime, which was vigorously opposed by those in Brazil who hate anything resembling democracy, nationalism or mass-based politics. The PT emerged despite repression to become Brazil’s first mass democratic party. When it was allowed to govern after the long-forgotten corruption of the Collor de Melo presidency, it was because it had attained this broad democratic base capable of winning elections.

Winning elections was considered in the early period after the collapse of the Soviet Union to be the sine qua non of the “victory” of capitalism. The PT then started to create its own political base in the Brazilian context– a combination of local clientelism and organised labour, but including sectors that had previously been excluded from this formula. In Brazil’s federal system it was necessary to establish a serious social budget at federal level to compensate for the intransigence at state level. To do this the PT needed a public budget to finance that expenditure. And here is where international banking– a historical force in suppressing Brazilian national development– applied the brakes. The PT had to commit itself to servicing the extortion aka foreign debt. Like in every other country held down by “debt”, Brazil could not fulfill any but the most superficial social promises and pay the extortion to banks.

So what happened was surely this: the PT political engineers decided to covertly subsidise their political consolidation and some of the social budget by siphoning funds from the parastatal oil company, Petrobras. This had to be done covertly to prevent the extortion ring (international banking and monetary agencies) from manipulating the Brazilian credit ratings and exchange rate to prevent it. So a lot of people got on the gravy train to keep this scheme working. Of course, the drain of paying all those whose cooperation was necessary to maintain this finance mechanism became parasitical so that more money was reaching the facilitators than the intended beneficiaries of the policy.

The idea of draining funds from a corporation through covert means is not new. (Enron was essentially a banking-led investor scheme for laundering money and exporting it to off shore banks. It would have continued had it not been for some personnel problems and a few accidents– biggest of which that it threatened to implicate POTUS G W Bush.) It is entirely excusable as greed when the funds are transferred to the wealthy. However, it becomes a horrible crime if the money benefits masses of ordinary people. The multilateral (US) debt enforcers have always upheld the claims against sovereign states by those who made official loans to corrupt dictators where the money was transferred to private Swiss accounts.

Hence, given the number of people on the Petrobras gravy train, this policy might have continued with relative impunity were it not for two very important international issues where the US regime has a direct interest: BRICS and Venezuela.

It is worth viewing a small segment in the late Allan Frankovich’s 1980 documentary On Company Business. There is an interview with a labour organizer from the US who is recruited by the AIFLD to go to Brazil and organise “anti-communist unions”. He explains what he thought he was doing and what he found to be his actual mission. But his most striking realisation was that he had been sent to Brazil for this work in 1962– a full two years before the “crisis” that officially led to the Brazilian military coup removing João Goulart.

Bolsonaro is discussed as a product of the “anti-corruption” crusade. “Anti-corruption” has merely replaced “anti-communism” since the latter is deemed extinct. In fact, the case for disrupting Brazil’s BRICS policy and isolating it from the Venezuela – Cuba “axis”, was given almost immediately after Lula’s first election. However, it would have taken some time to place everyone and everything in the best position to depose the PT. This was certainly ready by the time Lula’s second term expired. The death of Chavez and recently the death of Castro (at least of natural causes) have made it imperative to close the Brazil-Venezuelan border in every sense. The escalating war against Russia and China had already made it imperative to take the “B” out of BRICS.

The success of the “anti-corruption” strategy in legitimating the overthrow of heads of state had been proven along with the capabilities to generate synthetic social support for such exercises as elections and street demonstrations. Anti-corruption campaigns are directed against public officials and civil servants but not against the military (although the corruption of the arms trade is endemic and apparently incurable) or corporations who initiate the corrupt acts and/or benefit from them. There is a conspicuous reluctance to attack fundamentally anti-democratic institutions: Business and the military. “Anti-corruption” is really a euphemism for a broad attack on all democratic institutions since 1989-90.

It is one of the failures of the Left and faux gauche to grasp these fundamental issues. This is in part because they share the same “moral language” and progressive technocratic ideas about how the State should be constituted and operated. There has been a distinct inability or reluctance to retool, to defend fiscal independence, to recognise and call foreign debt (or in many countries all public borrowing) what it, in fact, is: a deliberate conversion of community resources into private cash streams for the ruling class compulsory debt financing of public expenditure by private banks. This is the main reason why the central banking system adopted by the US regime in 1913 and internationalised at Bretton Woods and in the EU, impoverishes all attempts at socialism. It is impossible to remedy the corrupt system of public finance and government operations without a radical change in the anti-democratic control over money. As long as economics is treated as a science when it is, in fact, a theology, every Left government will have its Luthers praising the slaughter of revolting peasants, while claiming the privileges of their own particular liberties.

The PT attempted to evade this criminal constraint on the democratic government by using a parastatal for social purposes– this was a capital crime and will be punished as such. It makes little difference that Petrobras could never have funded all the activities that the PT government would have implemented were it not constrained by compulsory “debt” service. The scandal effect of a rather thinly disguised evasive tactic by a slightly socialist government was a necessary catalyst to break the electoral majority that had delivered the PT solid election results.

The strategies of Langley have also matured with the years. In 1964 there was no hesitation to use direct military force to seize control. But now this is unnecessary and undesirable. No amount of protest prevented Temer exercising the office of President, despite massive corruption charges pending against him. No one can defend notorious criminal acts if they are made notorious even before trial has established whether a crime was committed. In the 60s and 70s no one in the Western hemisphere or Africa could be “for” a government notorious as socialist/communist, even if it was neither; in fact, (Goulart was no communist but there are people from Brazil who still say that he was. There are also people in Portugal who think that the 1974 revolution was directed from Moscow, although it was clearly the director of the counter-revolution, Frank Carlucci, who died this year.)

Another innovation has gone largely without comment: that is the refinement of the Phoenix programme. The so-called “war on drugs” and its various theatres provide cover throughout Central and South America for counter-insurgency or political warfare against the poor. When Temer ordered the military into Rio the attention was given to the extreme criminality and danger to normal inhabitants, which the military was needed to suppress. Aside from the fact that the military and police in all countries are integral components of the trade in drugs and other contraband, law enforcement militarisation is a classic cover for death squads and similar terror instruments. Placing the poor under martial law is something the Brazilian military actively practiced together with US Forces while deployed in Haiti under UN cover. No serious commentator on Haiti doubts that the “crime” in Haiti is any kind of base organisation against the owners of the neo-slave state.

Bolsonaro’s election result has to be seen, together with the combined operations to demobilise those sectors of the Brazilian electorate that provided the support and legitimacy for the PT, leaving only the historically unreliable and proportionately insignificant middle class to be disaffected (not unlike the anti-Chavista middle in Venezuela) to vote for the mythical “clean broom”. Here we return to the fact that the military never really left the stage. The military can be better grasped in a “cultural” sense — all those people in the elite and supporting classes who think with the military whether members of the armed forces or not. This includes the technocratic strata and those who naively believe in “military rationality” as a pure and national virtue. But one thing should be remembered about modern politics and “independent” candidates. Bolsonaro is expendable. He can be seen as a placeholder for the wider institutional force that combines actively to frustrate any democratisation of Brazil, most importantly by preventing any meaningful self-confident lower class political organisation and obstructing anything but the most meagre attempt to remedy Brazil’s grotesque economic inequalities.

The resistance to political and economic equity, let alone equality, is a centuries-old tradition in the two largest slaveholder republics of the Western hemisphere. This commitment to enrichment by forced labour and plunder has always been the driving force in the US and in Brazil. It makes little difference that chattel slavery was abolished in the 19th century. Democratic allocation of a country’s resources by whatever formula violates the very essence of the economic system slavery made possible. Facing that deep corruption in the Brazilian and US regimes will help in the appraisal of measures and movements to create genuine democracy and maybe even socialism in the majority of countries of the Americas, which have had neither.

  1. Ordem e Progresso (order and progress), the Brazilian national motto is a slogan from the 19th century Positivist Church. The leading figures of the Brazilian military, e.g. Benjamin Constant, who overthrew the monarchy to establish the republic were members. The Positive Church was based on the teachings of Auguste Comte, credited as the founder of positivism and sociology. It was conceived as a “religion of humanity”, emphasising science and progress. This coincided with the development of modern militaries in Latin America based on science and engineering as the foundations of military education. The military’s “modernising” role and its supposed rational objectivity originate in this tradition.

Tenth Anniversary Of Financial Collapse, Preparing For The Next Crash

Jail Bankers Not Protesters, Occupy Wall Street, 2011 (Photo by Stan Honda for AFP-Getty Images)

Ten years ago, there was panic in Washington, DC, New York City and financial centers around the world as the United States was in the midst of an economic collapse. The crash became the focus of the presidential campaign between Barack Obama and John McCain and was followed by protests that created a popular movement, which continues to this day.

Banks: Bailed Out; The People: Sold Out

On the campaign trail, in March 2008, Obama blamed mismanagement of the economy on both Democrats and Republicans for rewarding financial manipulation rather than economic productivity. He called for funds to protect homeowners from foreclosure and to stabilize local governments and urged a 21st Century regulation of the financial system. John McCain opposed federal intervention, saying the country should not bail out banks or homeowners who knowingly took financial risks.

By September 2008, McCain and Obama met with President George W. Bush and together they called for a $700 billion bailout of the banks, not the people. Obama and McCain issued a joint statement that called the bank bailout plan “flawed,” but said, “the effort to protect the American economy must not fail.” Obama expressed “outrage” at the “crisis,” which was “a direct result of the greed and irresponsibility that has dominated Washington and Wall Street for years.”

By October 2008, the Troubled Asset Relief Program (TARP), or bank bailout, had recapitalized the banks, the Treasury had stabilized money market mutual funds and the FDIC had guaranteed the bank debts. The Federal Reserve began flowing money to banks, which would ultimately total almost twice the $16 trillion claimed in a federal audit. Researchers at the University of Missouri found that the Federal Reserve gave over $29 trillion to the banks.

This did not stop the loss of nine million jobs, more than four million foreclosures and the deep reduction in wealth among the poor, working and middle classes. A complete banking collapse was averted, but a deep recession for most people was not.

The New Yorker described the 2008 crash as years in the making, writing:

…the crisis took years to emerge. It was caused by reckless lending practices, Wall Street greed, outright fraud, lax government oversight in the George W. Bush years, and deregulation of the financial sector in the Bill Clinton years. The deepest source, going back decades, was rising inequality. In good times and bad, no matter which party held power, the squeezed middle class sank ever further into debt.

Before his inauguration, Obama proposed an economic stimulus plan, but, as Paul Krugman wrote:

Obama’s prescription doesn’t live up to his diagnosis. The economic plan he’s offering isn’t as strong as his language about the economic threat.

In the end, the stimulus was even smaller than what Obama proposed. Economist Dean Baker explained that it may have created 2 million jobs, but we needed 12 million. It was $300 billion in 2009, about the same in 2010, and the remaining $100 billion followed over several years — too small to offset the $1.4 trillion in annual lost spending.

New York Magazine reports the stimulus was “a spending stimulus bigger, by some measures than the entire New Deal.” But unlike the New Deal, which benefited people at the bottom and built a foundation for a long-term economy, the bi-partisan post-2008 stimulus bailed out Wall Street and left Main Street behind.

Wall Street executives were not prosecuted even though the financial crisis was in large part caused by their fraud. Bankers were given fines costing dimes on the dollar without being required to admit guilt or having their cases referred for prosecution. The fines were paid by shareholders, not the perpetrators.

Protest near Union Square in New York, April, 2010. Popular Resistance.

Still at Risk

Many of the root causes of the crisis remain today, making another economic downturn or collapse possible. The New Yorker reports that little has changed since 2008, with Wall Street banks returning to risky behavior and the inadequate regulation of Dodd-Frank being weakened. Big finance is more concentrated and dominant than it was before the crash. Inequality and debt have expanded, and despite the capital class getting wealthier in a record stock market with corporate profits soaring, real wages are stuck at pre-crisis levels.

People are economically insecure in the US and live with growing despair, as measured by reports on well-being. The Federal Reserve reported in 2017 that “two in five Americans don’t have enough savings to cover a $400 emergency expense.” Further, “more than one in five said they weren’t able to pay the current month’s bills in full, and more than one in four said they skipped necessary medical care last year because they couldn’t afford it.”

Positive Money writes:

Ten years on, big banks are still behaving in reckless, unfair and neglectful ways. The structural problems with our money and banking system still haven’t been fixed. And many experts fear that if we don’t change things soon, we’re going to sleepwalk into another crash.

William Cohen, a former mergers and acquisitions banker on Wall Street, writes that the fundamentals of US economy are still flawed. The Economist describes the current situation: “The patient is in remission, not cured.”

From Occupy Washington DC at Freedom Plaza

The Response Of the Popular Movement

Larry Eliott wrote in the Guardian: “Capitalism’s near-death experience with the banking crisis was a golden opportunity for progressives.” But the movement in the United States was not yet in a position to take advantage of it.

There were immediate protests. Democratic Party-aligned groups such as USAction, True Majority and others organized nationwide actions. Over 1,000 people demonstrated on Wall Street and phones in Congress were ringing wildly. While there was opposition to the bailout, there was a lack of national consensus over what to do.

Protests continued to grow. In late 2009, a “Move Your Money” campaign was started that urged people to take their money out of the big banks and put it in community banks and credit unions. The most visible anti-establishment rage in response to the bailout arose later in the Tea Party and Occupy movements. Both groups shared a consensus that we live in a rigged economy created by a corrupt political establishment. It was evident that the US is an oligarchy, which serves the interests of the wealthy while ignoring the necessities of the people.

The anti-establishment consensus continues to grow and showed itself in the 2016 presidential campaigns of Senator Bernie Sanders and Donald Trump. They were two sides of the same coin of populist anger that defeated Jeb Bush and Hillary Clinton. Across the political spectrum, there is a political crisis with both mainstream, Wall Street-funded political parties being unpopular but staying in power due to a calcified political system that protects the duopoly of Democrats and Republicans.

Occupy Wall Street 2011

Preparing for the Next Collapse

When the next financial crisis arrives, the movement is in a much stronger position to take advantage of the opportunity for significant changes that benefit people over Wall Street. The Occupy movement and other efforts since then have changed the national dialogue so that more people are aware of wealth inequality, the corruption of big banks and the failure of the political elites to represent the people’s interests.

There is also greater awareness of alternatives to the current economy. The Public Banking movement has grown significantly since 2008. Banks that need to be bailed out could be transformed into public banks that serve the people and are democratically controlled. And there are multiple platforms, including our People’s Agenda, that outline alternative solutions.

We also know the government can afford almost $30 trillion to bail out the banks. One sixth of this could provide a $12,000 annual basic income, which would cost $3.8 trillion annually, doubling Social Security payments to $22,000 annually, which would cost $662 billion, a $10,000 bonus for all US public school teachers, which would cost $11 billion, free college for all high school graduates, which would cost $318 billion, and universal preschool, which would cost $38 billion. National improved Medicare for all would actually save the nation trillions of dollars over a decade. We can afford to provide for the necessities of the people.

We can look to Iceland for an example of how to handle the next crisis. In 2008, they jailed the bankers, let the banks fail without taking on their debt and put controls in place to protect the economy. They recovered more quickly than other countries and with less pain.

How did they do it? In part, through protest. They held sustained and noisy protests, banging pots and pans outside their parliament building for five months. The number of people participating in the protests grew over time. They created democratized platforms for gathering public input and sharing information widely. And they created new political parties, the Pirate Party and the Best Party, which offered agendas informed by that popular input.

So, when the next crash comes. Let’s put forward a People’s Agenda. Let’s be like Iceland and mobilize for policies that put people first. Collectively, we have the power to overcome the political elites and their donor class.

Breaking the Illusion of Power: There Is No Spoon

Do not be misled by what you see around you, or be influenced by what you see. You live in a world which is a playground of illusion, full of false paths, false values and false ideals. But you are not part of that world.

— Sai Baba

The greatest obstacle to discovery is not ignorance – it is the illusion of knowledge.

— Daniel Boorstin

You never change things by fighting the existing reality. To change something, build a new model that makes the existing model obsolete.

— Buckminster Fuller

Do not try to bend the spoon, that is impossible. Instead try to understand the truth…There is no spoon. Then you’ll see it’s not the spoon that bends, only yourself.

— Spoon Boy, The Matrix

At the height of empire a boundless stream of lies are told through euphemistic abstractions.  These abstractions are but illusion, they obscure perceptions by never directly dealing with the actual physical reality. Instead an interface is placed over the existing reality for purposes of control.

How often does one hear from corporate news sources about trying to build more homes or grow more food so there are no more homeless or hungry? Almost never, because there is already enough of both food and housing for all in the US, but what there is not enough of is the abstraction of money and that is what corporate news speaks of the most. The one thing we can create an infinite amount of is somehow the one thing we don’t have enough of so the people can have access to housing and food that already exist.

These abstractions are designed with the intent to flummox the people and hold them in place with abstract coercions that intend to create dependence and learned helplessness. We are told the automobiles that kill the environment and weapons designed to kill people are abstractions for freedom. We’re told a government that leads the world in mass incarceration is also an abstraction of preventing tyranny and providing security, democracy, and justice. Organized religion in the US is worth around $1.2 trillion a year, more money than Google and Apple combined, and is an abstraction of spirituality, community, and giving while never making a dent in any social problem.

Science has become an abstraction of wisdom, progress, and reason while evidently receiving their spiritual center from the aforementioned shoddy organized religion, as they continue to ignore harm they cause in favor of ostensible discovery, but what they are really discovering is how a corporation can concoct something that makes more money. Social media and likes become an abstraction for relationships, validation, and human connection. And most insidious of all money is an abstraction of self worth, material possessions, privilege, power, success, and labor.  Our virtual reality is complete sans the clunky head gear.

The illusion is created via layers of interfaces stacked on top of each other, similar to the creation of art which is made by adding layers of meaning through a chosen medium until the aggregate of the layers become a gestalt, or something more than its individual pieces. Such is the way the illusion is created for the people, which is intended to hold them in place.  They see only the gestalt and cannot understand the underlying truth around the world of false narratives elites have weaved over thousands of years of ownership and domination culture in western society.

The abstractions are man-made interfaces created by those in power to drive people towards predetermined outcomes. Abstractions are the propaganda by which we live our lives. They are not real, but the imposition of these abstractions forces us down the same illusory paths as they gaslight our waking reality.

Notice again, how nothing in American society is done directly, like when one needs medical care instead of going directly to a doctor they typically first get insurance so one can afford a doctor and are given doctors on a pre-approved list, along with only being approved for select treatments by said insurance. A certain crowd of people talk all day about the horrors of government getting in between them and their doctor, yet in America, predatory capitalism is a perfectly acceptable guest in their doctor’s office, as they assume that no one in the history of time has ever tried to sell people things they didn’t need or price gouge them for things they absolutely do need.

Or in the food situation, we don’t typically grow food directly. We instead go to miserable jobs to get the money to buy the food. Or when we don’t have a place to live, we don’t typically build a house ourselves, not that most people have time to build a house since, you know, we’re stuck at those miserable capitalist jobs so we can afford to eat. And we can’t afford to buy a home either because the miserable capitalist job doesn’t pay enough, and so it goes down the line of needs. A list of expenses that the capitalist jobs are supposed to be able to cover but they don’t. Just about everyone in the lower classes finds themselves in debt and working more hours to end up owing someone else money to live.

The system is as maddeningly irrational as it is cruel. A Sisyphean system that is seemingly inescapable where significantly more debt exists than money to pay off the debt. Now I say irrational only in relation to 99.99% of people on the planet, as it’s a perfectly rational position for lost souls at the top of the hierarchy who are ensconced in the throes of capitalist egomania.

Everyday in modernity people say things like “Well, you need money to live.” – Such utterances are said with an absolute certainty like the money could be consumed for nourishment with a nice chianti and some fava beans. To believe in money to such a degree is a delusionary psychopathy; a diseased state of being, which accepts artificial precepts as a primary necessity for survival. The reality is the money is only a tool for control by power. It’s the neo-whip.

Anyone that has a child knows they can control quite a bit of behavior by limiting their child’s access to funds and controlling what they can spend their funds on, or by altering what the child desires by what they are exposed to. Parents routinely reward certain behaviors to get the outcomes they seek, and you often see parents using their kids like indentured servants forcing them to do work for an allowance or just to be able to socialize with other kids.

Similarly the people are treated like children by a wealthy elite parent class. Most people have little interest in capitalist machinations, evidenced by the fact a whopping 80% of Americans are unhappy with their role as servant, that would be a hundred percent if they understood what kind of world is possible compared to what we are settling for. Very few have an interest in continuing to use oil, but if you can make people desperate enough to pay rent then they’ll go out on an oil rig and drill baby drill, just as they have little interest in war but through desperation they’ll kill baby kill.

The illusion is this system, the man behind the curtain; elites are playing a game and then pretending like their capitalist system is a natural order, like it was ever something democratically chosen. But Arthur Young long ago laid down the basic premise for the necessity of the illusions in capitalism when he said, “Every one but an idiot knows that the lower classes must be kept poor, or they will never be industrious.”  Or in other words, the illusion of scarcity must be thrust upon them or they’ll never show up at the bullshit jobs.

The wars give the illusion like America cares for the safety of the people to the degree the government will aggressively pursue signing up desperate naive teenagers with much life to live and put them in harm’s way to keep us “safe.” It’s not clear what kind of safety is offered to people by a society that throws its youth into traumatic situations so a bunch of old rich codgers can make more money. This form of safety seems like a good recipe to provoke hatred against us and is the antithesis of fostering a peaceful cooperative world.

The edifices of our society are colored and detailed with nebulous misapprehensions, most nebulous of all is universal fiat currency, and everywhere it traverses empire is created without the need for firing a shot. It forces action via coercion and puts people into roles they wouldn’t do otherwise.

The ruling class likes to shame those they lord over for not working hard while ironically they do little else other than signing documents. They like to claim it’s then a profitable skill they should be rewarded for greatly to manage the complex rigged system they created for their benefit with their lawyers, contracts, corporations, loans, government institutions, courts, weapons, threats, and coercions. A capitalist’s claim to money usually rests on how they learned how to exploit you better and with less compassion. It truly takes someone that cares very little for anything but themselves to hoard power in such a tyrannical manner and then consistently try and rationalize their system as a benefit to all.

If there was real symbiosis in our society no one would have to be forced to do anything because the benefit of the actions would have equal benefit for all. But the creation of most things in capitalism is for the financial benefit of a small oligarchy and hence the people often have little interest in contributing to helping elites since most of the benefit goes to those who are already rich and powerful.

The money is such a perfect tool because it’s so easy to manipulate and it’s more surreptitious in disguising its intents than ordering someone around with a gun. If the masses became wealthy enough where they have better options, and thus refuse to work down in a mine shaft, then this is when the money is tightened by the ruling class. And all you have to do to restrict money flow is give out less loans at banks, or raise rents by increasing interest rates and suddenly you put a pinch on the common man. Add in property taxes so their home, typically their primary investment, can be taken from them at any time if they can’t cough up those taxes, and thus they’ll scramble to take those jobs.

If a ruler is going to adequately hold brutal reign over people, as all leaders do in some form, they must coerce, divide, and manipulate people to get them to do the things they want. And when those things are directly opposed to the held values of a person you then have to frame the action under an acceptable premise. Blinders must be placed on the human animal so that it continues to drag the emperor’s plow and carriage.

There is a sticky social glue that holds the fabric of reality together and it is based on nothing more than a perception and what we collectively believe. The contemporary state of our self-abusing beliefs says we have to wait for a president’s term to end before we can think about making desperately needed changes to this society and change the way we are living. Our held beliefs that capitalism offers some kind of fundamental liberty is an impediment to the freedom of the entire global population, because capitalism has always been a tool of control formulated by elites to rig the game in their favor. The people will not be free under any system where there is a centralized power, and continuing to pretend capitalism is anything but exploitation is to never realize the nature of the trap. But this is not to assume a centralized state run communism structure is any better. It is the opposite side of the authoritarian coin, a double bind coercion. They give you bad cop/worse cop options, China or America, blech and blech.

This way of being was never decided on by a vote of the people, there was never an alternative option. We were simply forced into this state, often violently so. We seem to have no recollection that indigenous Native American people lived prosperously for hundreds of years without much of a mercantile system, no stock markets, no lawyers, no mass incarceration system, no weapons of mass destruction, no corporations – And yet somehow, somehow, the majority of them managed to find meaning, community, and purpose in life.

In truth we cannot be free of illusions manifested in the material until we free our minds of what lies exist in the realm of thought and the false values we live our lives by; the shame, punishment, domination, and ownership installed in dogmatic systems of control have to go. There’s a lyric from Florence and the Machine that goes “It’s hard to dance with the devil on your back, so shake him off.” We cannot be free, we cannot dance in the sun, we cannot do anything until enough of us see past these illusions to create a new reality.

And to create this new reality, we must get right in our minds. Take care of our bodies, take care of each other, take care of our state of consciousness. Get strong in the mind. Do no harm to others, be humble and learn from all. Tried and true paths of reaching greater enlightenment often include meditation, walks in nature, learning how to breathe, doing an internet search for Terence McKenna, and a little help from psychedelics if you have the means. Know that your courage will be tested at every moment, and awareness will frustratingly leave you when you feel like you need it the most.

Breathe through that shit.

Face what you are afraid to face in your mind and your mind will be set ablaze, your spirit will flow, your body will beat with new rhythms, and just like that you’ll get it. And all that depression, all that violent negative shit you masochistically torture yourself with upstairs will fall away like magic. Alakazam!

If you should choose then to let go of desire, to let the world come to you, to accept, to forgive, to turn the other cheek, to have gratitude in the moment, well, then you might find yourself feeling like a god amongst common people. But then you come to learn you are equal to all, even to the smallest and most fragile, and you are just in a different place than them, different positions on a path. One may learn to the benefit of all, to always error towards humility, to work to help those who face the same struggles you have in ways that actually help them and are not colored with the shadow of selfish intent. These are truths beyond illusion.

The gaslighting must be unraveled before the shame and punishment systems truly come crumbling to the ground. To break the illusion we must at every moment hold in the forefront of our minds that this is but a chosen system elites have put us in and it does not have to be this way. Things can change quickly if we can find a new spell to cast, one we choose together instead of one chosen for us by a select few who hold illegitimate power.

Always remember, the centralized economic systems, the politicians, the corporations, the banks, and the organized religions are all tools of control in a social hierarchy. These tools of control are put there intentionally to curve your decision making to do what they want you to do, which is make them more powerful. These elites have quite the arrogance to suggest they know better than you, than philosophers, shamans, ecologists, biologists, climatologists, artists, artisans, the lovers, the dreamers, and me; to put it in amphibian terms.

They believe they know better out of convenience to them because if they know better that means ever so coincidentally they grow more powerful, with more money, more stuff, and better looking people to use sexually. Their success is not symbiotic, though, as their success means the exploitation of everything else in existence so they can just take more for themselves.

Never forget, even when we are forced to operate within this system and they put that saddle on you, do not be broken. To quote Margaret Attwood’s words from The Handmaid’s Tale, “Don’t let the bastards grind you down.”

Know the illusion is a game being played with an malevolent intent, and work to bring the underlying truth into the forefront of the conscious mind and the illusion will break. Refuse to be led around by coercions of money or any other control system that attempts to cage humanity or your consciousness while simultaneously wrecking the natural world. The entire earth is now speaking to us in very direct terms, showing us that the way we are living is wrong. Every feedback mechanism screams this way of living is not healthy for body, mind, spirit, flora or fauna. We can change it, but it takes belief in better.

Free your minds. Free the Earth. May it be so.

The Peoples’ Capitalism

Introduction

America began as a plutocracy and rather quickly evolved into a corpocracy, or an unequal partnership between Corporate America and Government America, with the former controlling the latter. We now call the plutocracy the power elite of the corpocracy, and it is this power elite that is responsible for America’s economy and its capitalistic economic system. Both the economy and the system serve the power elite, obviously, and not the common good. Assuming you are not one of the power elite, you, like me, are on the short end of the stick. How short depends generally on what your socioeconomic status is. The stick is very short for America at large, for it is becoming, if it hasn’t already gotten there, a third world country, which means a substandard living for many of the citizenry.

I once raised the question, “Is America going to Hell in a handbasket?”1 If it is, there are three “isms” why; imperialism, militarism, and capitalism. There is absolutely nothing intrinsically good about the first two isms. There is no good imperialism, no good militarism. Not so the third ism. All America has ever known and used is bad capitalism. But as Parts 1-9 have shown us, there are many visions of a good capitalism. However, there are probably millions of people, especially socialists, who insist there is no good capitalism. Well, they can believe whatever they want to believe.

That being said, what do I have to offer in this last part, Part 10, of the ten-part series on “economic sanity and alternative economic systems”? A “peoples’ capitalism,” a good capitalism, is what I have to offer. It does not stand alone. It stands on the shoulders of the non-economist thinkers who preceded me in Parts 1 through 9.

The Lodestar for The Peoples’ Capitalism

The lodestar tells us what to aim for, the end goal, which is the creation of a fully functioning peoples’ capitalism, and how we know if we get there. The lodestar is nothing more nor anything less than that prescribed in the first 28 Articles of the United Nations Declaration of Universal Human Rights. At first blush some of the articles seem to have nothing or little to do with a nation’s economy and its economic system, yet these 28 rights could never materialize under bad capitalism.

(1) Innate freedom and equality
(2) Ban on discrimination
(3) Right to life
(4) Ban on slavery
(5) Ban on torture
(6) Right to recognition as a person before the law
(7) Equality before the law
(8) Right to effective judiciary
(9) Ban on arbitrary detention
(10) Right to public hearing
(11) Right to the presumption of innocence
(12) Right to privacy
(13) Right to freedom of movement
(14) Right to asylum
(15) Right to a nationality
(16) Right to marriage and family
(17) Right to own property
(18) Right to freedom of thought and religion
(19) Right to freedom of opinion and expression
(20) Right to freedom of assembly and association
(21) Right to take part in government
(22) Right to social security
(23) Right to work
(24) Right to rest
(25) Right to an adequate standard of living
(26) Right to education
(27) Right to participate in cultural life
(28) Right to a social and international order.

Ordinarily, I regard the UN as a worthless entity, a pawn of the world’s power elite, particularly that of America’s corpocracy, but I give the UN credit at least for enunciating the above principles. But I must discredit if for being feckless. No nation can expect UN enforcement of the 28 rights. The UN declaration is like all corporate codes of ethics, paper principles to be preached and never practiced.

The Lodestar’s Lodestar: Article 25

Everyone has the right to a standard of living adequate for the health and well-being of himself and of his family, including food, clothing, housing and medical care and necessary social services, and the right to security in the event of unemployment, sickness, disability, widowhood, old age or other lack of livelihood in circumstances beyond his control. Motherhood and childhood are entitled to special care and assistance. All children, whether born in or out of wedlock, shall enjoy the same social protection.

All the other articles are represented in one way or another in Article 25. We must look to it for the criteria for determining whether every human being has the essentials for an adequate living and nothing less. If they do, then it is at least partly due to some form of socially responsible capitalism. Adequacy, of course, is the minimum standard. Millions of Americans and billions of other peoples have far less than an adequate standard of living. They have a miserable standard of living.

Developing criteria, or indicators of progress and reaching the goal, used to be among the mainstays of my working career, but no more. I shall turn that responsibility over to a task force of special people to be identified next.

Setting the Stage for True Reform

Let’s assume the following stage setting. My proposal for a U.S. Chamber of Democracy (USCD) has been implemented.2 It has commissioned a task force, peopled by the non-economists highlighted earlier in this series along with Aristotle and Marx in absentia, and charged with developing and publishing under the auspices of the USCD a proposal for a new national economic policy and a new economic system, the peoples’ capitalism. The proposal would include strategic initiatives, a time table for finishing, and indicators of progress.

The task force would also be charged with polling the opinions of middle class Americans, the socioeconomic group essential to any true democracy and viable economy, and then melding the solicited public opinion with the draft proposal.

Additionally, the USCD would implement my proposal for establishing the “democracy’s commandos,” comprising nearly 20 groups of disgruntled or otherwise receptive Americans numbering in the hundreds of thousands to apply pressure on the corpocracy’s power elite, including its corrupt politicians, to implement the proposal or suffer the consequences.3

The task-force’s strategic initiatives are mostly mine. That is, after all, my prerogative since I fathered the task-force! I have written reams of real and virtual paper identifying and explaining the strategic initiatives necessary for ending the corpocracy (including its endless spying and warring) and achieving true economic reform.4  I will spare you the details and the time by listing in no particular order just those 19 initiatives necessary to create the “peoples’ capitalism” and then arbitrarily pick and summarize just one of them. But I guarantee you, all 19 are solid initiatives, and if they were all achieved America would have a new economic system, the peoples’ capitalism.

(a) End Free Market Ballyhoo;
(b) End Fear Mongering Over the National Debt;
(c) End Privatization;
(d) End Economic Disparities and Poverty;
(e) End Trickle-down Economics Hokum and Blaming the Poor for their Poverty;
(f) Move toward “An Acceptable” Level of Employment;
(g) Increase Wages;
(h) Reduce the Costs of Daily Living;
(i) Move toward a Quality American Education;
(j) End Shut-Out Capitalists: So Much Capitalism, so Few Capitalists!
(k) End Wall Street along with Financial Speculation at Home and Away;
(l) Replace Bad with Good Globalization: Localize More, Globalize Less;
(m) Abolish the Unholy Trinity: The WTO, WBO and IMF;
(n) Repeal Existing Trade Agreements;
(o) End Unsustainable Development and Ovidian Growth;
(p) Make Commerce Greener;
(q) Replace Private Banks with Public Banks: Starting with abolishing the FED;
(r) End Elitist Corporate Pay for Socially Irresponsible Performance; and,
(s) Share Democracy’s Cost Fairly.

I will arbitrarily pick the last initiative, “Share Democracy’s Costs Fairly” and summarize it.

The task force would consider all good ideas on how to achieve fair-share taxation, including Barnes’ proposals for common tax credits. Just as importantly. the task force would peer through the corpocracy’s veil and do a “tax-escape” audit” of all forms of corporate welfare, including tax havens, tax cuts for the filthy rich, etc.5 While this exercise is being done, the aforementioned poll would include asking the polled to rate the importance of the UN’s Articles. Finally, democracy’s commandos would be told about the findings and asked if they would be willing to apply their democracy power to end corporate welfare for the sake of the general welfare.

In Closing

I will close with these short remarks. Yes, neither the USCD nor the democracy commandos exist, but not for my lack of trying for 10,000 or so hours on and off for several years. Yes, it is a wish list of 19 initiatives, but they represent thoroughly studied ideas, and from ideas flow change if opportunities arise. Yes, up against America’s mighty corpocracy, it’s the corpocracy’s ideas that prevail. From those three remarks conclude what you will about the peoples’ capitalism or any other significant reforms in the economic arena ever occurring.

Recapping Parts 1-9

Part 1: Economic Sanity and Alternative Economic Systems introduced this 10-part series on economic sanity and alternative economic systems. I told readers “Never mind that I am not an economist. Instead, please appreciate that I am not an economist.” That led to me trotting out for the umpteenth time my “human equation” for explaining anything involving humans. Getting closer to the subject at hand, I went on to say that “human behavior, even habitual behavior, needs to be motivated. At the heart of human motivation are values, beliefs, attitudes, needs and wants, with the latter two being the most relevant for the topic of this series. Human needs and wants are the bedrock of any economy and any economic system. Money is not the bedrock. It is simply a medium. There was no money when the earliest humans started needing and wanting. Debt, as some economic thinkers think, is not the bedrock. Debt is merely an offshoot of a usually uneven transaction. And since no human, not even a member of a society’s power elite, is self-sufficient, satisfying one’s needs and wants will in one way or another depend on what some other human beings do. So, you see, the psychology of human nature is the bedrock of economics, any economy and any economic system.” While I truly believe what I just wrote, it also gives me passage to writing about economies and economic systems as a psychologist!

Part 2. Economic Insanity Up Close. This article summarizes Roger Terry’s book on “economic insanity.” He is a non-economist and a responsible businessman. Terry contends that the growth-driven capitalism of big, authoritarian, and unaccountable organizations is devouring the American dream. Terry’s features of a new economic system would be a structurally different capitalism, one we’ve never seen before. It would be a “Nation of Owners,” in which there are three levels of ownership: (a) small enterprises, like his own, with the founders and a few partners who share ownership commensurate with their seniority and other factors like start-up funding; (b) larger enterprises, the corporations of today, would be owned collectively by their members, who would elect managers for limited terms of office; and (c) public enterprises, such as utilities, education, defense, and the like, would be created and managed by public boards or local governments. Now that I would add and enthusiastically emphasize would be real economic sanity!

Part 3. Notes on Some Classical Thinking. In this article I “pick the brains” of Aristotle, Adam Smith and Karl Marx. I close by telling readers I’m leaving Smith behind and feel much closer to Aristotle and Marx.

Part 4. The Fringe Economy. Part 4 reviews the book, Short Changed, Life and Debt in the Fringe Economy, written by Howard Karger, who at the time was a professor of social policy.

The fringe economy preys on the poor through seven different medium all controlled by corporations; pawn shops, the credit card industry, alternative financial services such as check cashing and rent-to-own, fringe housing, real estate speculation and foreclosure, the fringe auto industry, and the “getting-out-of-debt” industry such as the multi-billion dollar debt management business. The solution, Karger thinks, is not to eliminate the fringe market because mainstream services are not as accessible physically or as culturally compatible to poor neighborhoods. He suggests numerous solutions, some more plausible than others that would accommodate the realities of these neighborhoods while also eliminating some of the abusive and fraudulent practices of doing business with the people who live in those neighborhoods.

Part 5. Six Economies. This is a review of Riane Eisler’s book, The Real Wealth of Nations. I am not going to summarize it here. She is a genius. You need to read her book.

Part 6. Natural Capitalism: Creating the Next Industrial Revolution. The authors of Natural Capitalism argue that it is needed to “create the next industrial revolution.” They warn that if we continue to ignore the value of natural capital; i.e., nature’s life-support systems for humankind, there will come a time when there won’t be any more life support. My rejoinder was that “America doesn’t need the next industrial revolution. America needs a new and better capitalism that enfolds industry without its corpocracy.”

Part 7. The Uncommon Commons. This is a review of a book, Capitalism 3.0: A Guide to Reclaiming the Commons, by Peterr Barnes, co-founder, president, or a director of various socially responsible businesses. He wants “capitalism 3.0” to replace “capitalism 2.0,” the existing economic “operating system.” He complains that corporations, with no resistance from “our” government, are privatizing the commons, profiting from it and externalizing the costs. He defines “the commons” as assets we all share by inheriting or creating them together and subdivides them into three sectors, nature, community, and culture. Together they represent our “common wealth” in contrast to our “private wealth.” Barne’s proposals are among the most unique I’ve ever read on capitalism and deserve your attention.

Part 8. Shared Capitalism. Jeff Gates wrote a book jam packed with ideas about what he calls “shared capitalism for the twenty-first century.” He was once counsel to the U.S. Senate Finance Committee (1980-87). In this role, Gates crafted federal law on employee stock ownership plans (ESOPs) and pension plans. In other words, he worked for the corpocracy, and that opened his eyes! Unshared capitalism, he argues, while made to order by the corpocracy, is totally unfit for a democracy. His solution is to make widespread ownership a specific goal of national economic policy. His opinion that people take responsibility for what they own resonates with me, having watched for two decades party-going renters misbehave and scar property in an ocean-side condominium where my wife and I owned and never rented a unit.

Part 9. Spiritual Capitalism. Dana Zohar and Ian Marshall wrote the book, Spiritual Capital: Wealth We Can Live By.  Zohar is broadly trained and thus taps into diverse resources such as classical literature, physics, religion, and psychology. Marshall is a Jungian-oriented psychiatrist and psychotherapist. The authors argue that material capitalism, the kind that predominates in America’s corpocracy, is unsustainable, depleting our natural resources, creating political and social instability, eroding our moral standards, and degrading the very meaning of life in terms of its deepest values and aspirations. Rather than reject this conventional capitalism altogether, however, the authors advocate transforming it into a more positive, sustainable economic system that they call “spiritual capitalism” in the secular, non-religious sense.

It’s defined as the amount of knowledge and expertise available about “meaning, values, and fundamental purposes.” It produces not material wealth that ultimately consumes itself but a self-sustaining wealth “that enriches the deeper aspects of our lives.”

The authors are creative thinkers who forced me repeatedly to think outside my own relatively narrow paradigms. There is much about their views and ideas with which I agree. Yet, the authors’ analysis of the problem and their proposed remedy are too unbalanced and insufficient. Material capitalism is far more than what they call a crisis of motivation. Many other factors contribute to the failings of traditional capitalism. Moreover, relying on a critical mass of business people to shift upwards their spiritual intelligence, as they propose, is naïve and simplistic in my opinion.

Part 10. The Peoples’ Capitalism. You are reading it now.

• Part 1 here; Part 2 here; Part 3 here; Part 4 here; Part 5 here; Part 6 here; Part 7 here; Part 8 here; Part 9 here

  1. Brumback, GB. “Is America Going to Hell in a Handbasket?” The Greanville Post, March 29; Uncommon Thought Journal, April 21; Cyrano’s Journal, April 22, 2013.
  2. See my book, The Devil’s Marriage: Break Up the Corpocracy or Leave Democracy in the Lurch, 2011.
  3. Ibid.
  4. See also my books Corporate Reckoning Ahead, 2015, and America’s Oldest Professions: Warring and Spying, 2015.
  5. Editorial. $100 Billion the Country Could Use. The New York Times Online, March 13, 2009.

Switzerland: A Once-in-a-Lifetime Chance to spreading Positive Banking News to the World

It’s called “Vollgeld Initiative” – in German, meaning more or less “Referendum for Sovereign Money”. What is “Sovereign Money”? It’s money produced only by the Central Bank, by the “Sovereign”, the government, represented by its central bank. Money created in accordance with the needs of the economy, as contrasted to the profit and greed motives of the banking oligarchy, what it is today; money creation at will, by private banking.

The people of Switzerland are called to vote on 10 June 2018 whether they want to stop the unlimited, unrestrained money-making by the Swiss private banking system, and to return to the “olden days”, when money was made and controlled only by the Central Bank; and this not just in Switzerland, but in most countries around the globe. Switzerland is one of the few sovereign countries within the OECD, and possibly worldwide, that has the Right of Referendum written into her Constitution. With 100,000 valid signatures anybody can raise a referendum to amend or abolish a law, or to create a new one. This is a huge privilege to Right a Wrong.

Most Swiss and probably most westerners in general don’t even know that the loan or mortgage they get from their bank is no longer backed by the bank’s capital and deposits. How could they? Instead of being told the truth, they are being lied to, even by their own party and politicians. And that in the case of Switzerland, by nobody less than the CEO of the UBS, the largest Swiss bank. Just watch this short video (in German and Italian – 2 min)

Lying is a felony, hence Mr. Sergio Ermotti, CEO of UBS, should be prosecuted. Unlikely to happen, though. What Mr. Ermotti in essence says in this interview is that loans are backed by deposits. This is directly contradicted by the Swiss National Bank and the German Bundesbank (Central Bank). They say that “today about 90% of all the money is accounting money, created by loans the banks make to enterprises and private citizens. Pretending that banks use deposits to make loans is not true.” The latter part was specifically expressed by the German Bundesbank.  So, how come Mr. Ermotti, CEO of UBS, wouldn’t know that?

Switzerland, fully embedded in the globalized western banking system, absorbed by it, has a chance to tell the world that the only way to control and get on top of the cycle of financial and economic crises is to reign-in the bottom-less money production, the debt-interest-profit driven banking system, a Ponzi scheme that cannot survive (financing debt with more debt); the abhorrent uncontrollable debt-profit cycle that has brought misery to humanity – just look at Greece. With money production controlled by the respective central banks, for example, in France and in Germany, the senseless indebting of Greece by German and French banks would not have been possible, in which case the troika’s (ECB, European Commission and IMF) so-called bail-outs, or ‘rescue packages’, would not have been possible either. Hence no doubling of Greece’s debt, and Greece would be well on her way to recovery.

The point is that these too-big-to-fail banks have become also too big to control, and, of course, they do not want to be controlled. They have the (political) power to shed off any control. They want to continue creating debt, lending money not for economic development, but for profit of their shareholders. Banking for development has stopped a long time ago. The only banking for development is public banking, and that is almost non-existent  so far in the west; except for North Dakota and soon New Jersey, and a number of other US States are considering public banking as a means of bringing back the true sense of banking; i.e., for economic development. But with the current FED-Wall Street bulldozer’s onslaught on the world, they are fighting against windmills but even windmills are fallible.

By and large, in the west it’s corporate banking for profit. And thanks to the public’s ignorance and disinterest, deregulation took place behind our backs.

Did you know for example, that to become a member of the World Trade Organization (WTO), a nation has to deregulate its banks – to put them on a platter at disposal of the globalized banking sharks? Probably you didn’t. Such decisions are never publicized.

Again, the Swiss with a Yes vote on 10 June could change this for themselves and send a signal to the rest of the world, suggesting to take back their financial, economic and monetary sovereignty, cutting the link to globalized usury banking that enslaves the poor in favor of the rich. Literally.

Will Switzerland seize this unique opportunity to broadcast this powerful message to the (western) world? Saying in the clearest voice possible – enough is enough, we are going back to regulating our banking system, through ‘new-old’ legislation and through the only institution that really has the Constitutional power to create money – the Swiss National Bank?

The Swiss, an enormous influence in international banking – good or bad – could become a trail blazer for a new economic model, to demonstrate how well an economy can run without following the global trend of unlimited money supply which serves only the banks by indebting the nations and the people. They could put a halt to the seemingly out-of-control economic rollercoaster that brings only misery to people, unemployment, broken homes and businesses, decimated social safety nets, pensions health plans — they, the Swiss could put an end to it and become an economically and financially independent nation with a healthy economy for the wellbeing of the people – not of the banks.

Will they? Will they grasp this once in a lifetime opportunity to break loose from the banking stranglehold?

The Swiss people are the most indebted of the G20, with 127.5% of private debt as compared to GDP in September 2017. The trend is on the rise. The United States, where deregulation started in the 1990s under President Clinton before it became ‘globalized’, was number seven with 78.5% in September 2017. According to an OECD 2015 report, mortgages account for 120% of GDP, by far the largest proportion of all OECD countries.  Do the Swiss know that? Some probably do, but the majority most likely does not. Ever-so-often the Swiss National Bank (Central Bank) issues a routine warning about private and particular mortgage debt as it is an ever-raising risk for highly indebted families. An economic crisis, loss of a job and a family fails to meet mortgage payments – bingo, foreclosure. The same as in 2008, 2009 and going on.

Well, do you know that in Switzerland first mortgages do not have to be amortized? In fact, banks encourage you not to repay your mortgage, but just keep paying interest. Many mortgages are passed on with the related real estate from generation to generation. So, you never really own your house. The bank does. And the bank earns the money on your house, as well as calls the final shots on what is to happen with your real property, in case it is being sold.

“Free money”, as it could also be called, is money made indiscriminately without backing. It has many negative effects – the risk factor, as mentioned before – and the bubble effect on the housing market which in turn increases the risk for houseowners, because sooner or later bubbles burst. The only winners are the banks.

Why can the banks just make mortgage loans without requesting amortization? Because they are afloat with money. Because, of course, they just make money with loans – the 90% which are not central bank made money. And the more loans they have outstanding, the more interest they earn. They earn money for doing absolutely nothing. For a mouse-click. Interest accumulates on its own. And debt is today’s foremost tool to enslave people, nations, entire continents.

This is what the Swiss could change by accepting this referendum, by Voting YES to Vollgeld. It would refrain banks from creating money and return the responsibility to the central bank, where it is to be located according to the Swiss Constitution. It would force banks to be more prudent in issuing mortgages and personal debt, it would provide for a more stable economy and for a financially less vulnerable personal life. It would gradually take some air out of the real estate bubble – a healthy feature for any society.

Again, are the Swiss going to vote for what is best for them? Probably not. But why not?  Because they are subjected to an enormous anti “Sovereign Money” campaign by the banking and finance sector, by the ‘built-in’ lobby. Yes, built-in, because in Switzerland Parliamentarians have the right to represent as many corporations, banking and otherwise, in their Boards of Directors, as they please. Yes, this is another special feature of Switzerland, also unique among OECD countries. How many Swiss are aware of this?

Is it therefore a surprise that the Swiss are being utterly brainwashed to vote against their own interest? As they have done so often in the past – and frequently to the utter surprise of neighboring countries.

In addition, and this is where another feature of the Swiss Un-Democracy enters: The Swiss Federal Council, the Swiss Executive, takes for itself the privilege and right – I have no clue from where, it is nowhere written in the Constitution – to issue sort of an edict before every national vote or referendum “advising” the people how they should vote. With a public that oozes of comfort, where consistently less than 50% go to the polls, largely because of disinterest, such a proclamation has a huge impact.

In this case, the Swiss Government, its Executive, has already and already for a while repeatedly “advised” its populace to vote ‘no’ to the Vollgeld Initiative. And surprisingly every major party goes along with it, including the socialists and other left-leaning parties. Either they are brainwashed to the core by propaganda repeated at nauseam, indoctrinating the people how bad accepting the “Vollgeld Initiative” would be. How bad can be owning your “Sovereign Money”? Can you imagine? How much lie must go into such fake marketing?

Or could it be that the Swiss are no longer ruled by Bern, nor has the Swiss Central Bank much to say about Swiss monetary policy, but they may be ruled by an international and globalized banking cartel that puts so much pressure on the Swiss government, that it could almost be interpreted as blackmail? Why otherwise, would intelligent people advise and vote against their own and proper interests?

My dear Swiss fellow compatriots, this is the chance of your lifetime. Do yourself a favor by voting YES to the “Vollgeld Initiative“. Not only will you do yourself and the Swiss economy a favor, by bringing the latter back to sovereign control, you would most certainly make world-headlines and, who knows, inspire the peoples of other countries, who are sick and tired of their enslavement by banks, to request that their Central Banks alone can make money – in the amount that corresponds to the needs of their economies – no longer according to the profit-and-greed requirements of the globalized banking oligarchy.