Michael Hudson Interview: Public Banking Needed to Stop “Cannibalization” of the Economy


Public Banking

www.therealnews.com • March 29, 2013

Watch Michael Hudson’s interview with Paul Jay of The Real News Network.

Michael Hudson: As long as finance is left in private hands, you’re going to have austerity and America ending up looking like Greece and Ireland.

Read the transcript here.
Watch the video here.

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What’s missing in most of the “Change the Money” Rhetoric

People have been misled for centuries, even millennium, about the most fundamental role of “Money” in local and national, finally global, economies.  The richest fraction of a percentage point of the Various “National” reserve banks that claim the right to “create”, or “make” money have set up national and international systems along the same lines as a “Ponzi Scheme.   Let’s get the record straight now and forever after.  “Money” is created by those that have the power and wealth to do so.  Because it has always been created by the schemers and profiteers in every society, they have obscured money’s real definition, and its proper role in a well ordered and advanced society.  Because they have done this predatory, parasitic activity so long, and have kept the people ignorant of the true causes of their malaise, the world is on the brink of economic, or monetary collapse.  The money they and their sibling banks create is a valueless fraud.  Even the plunderers themselves finally see that taking the restraints off their dogs of war and death is having “unintended consequences”.  They are killing the goose that lays the proverbial golden eggs – literally.

If the world is going to heal itself, then it must change the very fundamentals of money, economics, and representative government.  People must hear these basic tenets on money, become educated about them, and elect represent leaders who will serve the public weal.

Nearly everything now being taught about money is wrong.  Those issuing it are wrong.  The interest on it is wrong.  The definition of it is wrong in most of its aspects; the only accuracy being it should be a universal domestic medium of exchange.  Money is not gold or silver.  Those are commodities, and all commodities (basic staples of wealth) can be used as money, but it is not and should not be used as a medium of domestic exchange.  Though it can be used as a settlement of international debt as a last resort, when other goods and services will not suffice.


1. The local circulating currency should be issued by that government that has the authority to tax and make laws.  It’s value should be the time, labor, good faith and credit of the public is such commonwealth.  Money has usually been issued by “sovereign” authority and in a democracy sovereignty flows from the individual citizen to those delegated to public office or service.

2.  Circulating Money should not be subject to hoarding.  An interest or penalty should be imposed on those taking money out of circulation.  Bonds should be made available for thrift saving or other valuables or desirable treasures.

3.  A treasury commission should be accountable to the people, elected by the people, and money issued tightly regulated according to the demands of the local economy being served.  This regulation might be delegated to higher governments who may assume the function of issuing circulation currency.  I propose that violations of trust in this arena be subject to a swift and sure death penalty.

Several forms of money might be needed.  Local money for local goods and services.  County tax credits could be issued, along with state tax credits (money).

Credit or debit cards could and should serve in all these capacities and levels, as well as national money.  Electronic debits and credits (money) are already the biggest part of our money and financial transactions (by far).  They will continue to be as long as they are based upon a real fund of existing monies.  Transactions between states or local entities could most easily be served by the higher national money, or credit.

There should never again be the need to wrestle with a national debt or budget that is impossible to pay off or would endanger our nation or world to economic slavery, such as that faced by us now.  All banks get their charters from the governments (the people) they serve.  They have a right to carry on legitimate banking enterprises.

This draft will be expanded further, but is essentially accurate in every detail.

The Summany to Date

I’ve spent most of this blogsite trying to ingrain in the reader the big reasons – the root causes – of how our civilization is being driven into chaos and collapse.  I’ve focused om money, and how private banking interests have sold us the “snake oil” that we were better of letting them – the private bankers – create money than our elected governments.  The bankers eventually won the long crucial struggle, and money is now privately created and circulated (controlled), and the profits (interest) from all money transactions goes to private bankers.  Our national debt is interest owed by the people od the USA to its bankers.

What I’ve probably failed to adequately do is stress the relationship between money – a proxy for wealth – and resources – like oil, coal, water, metals, gems, plants – all the natural  bounties (wealth) of our planet.  All wealth comes from two sources: human labor (including ingenuity, creativity, industry, skill, etc.) or natural resources.  Some would include life, human, plant or animal labor (energy) in the category of natural resources.

Our remarkable industrial and technological civilization is mostly oil-based.  Money is mostly oil-based in today’s economies.  We are running out of oil.  The wells are running dry.

I’m far beyond trying to defend myself from the chant of “conspiracy theorist”, “doomsayer”, “chicken little” and/or other such childish rebuttals or dismissals about our current suicidal or catastrophic course, and why we remain on it.  All one really need do is dispassionately assess the evidence all around us.  It’s happening.

The focus now is shifting to the reasons for, and depth of, the problems the threaten to overwhelm us.  This is made far more difficult by our corporate news and information media refusing to accurately spotlight, interpret or discuss the major events of our times.  They are a large part of the “global company” or syndicate of corporations that now control the world, or own it outright.

War, terrorism, genocide, mass starvation, thirst, encampments of refugees or mobs fleeing intolerable health and sanitation conditions, all have their root causes  in a psychopathic economic system built on a house of cards that is based on cheap energy.  That “cheap energy” will eventually turn out to be the most expensive energy imaginable once the “hidden environmental costs” are factored in.  Environmental pollution is killing our planet!  This is a fact to those who study the matter.

Unless we stop the man-made environmental pollution N-O-W the planet we know of as home will soon be unable to support life as we know it.  It is becoming a more inhospitable place with each passing day.   We may already have passed the tipping point for saving the majority of human life on earth, and no one knows how long it will take the planet to cleanse itself of the damage already done.

The all-important relationships between money, wealth, resources, and energy have been deliberately obscured to all but the select few insiders who control them.  This syndicate includes the Bilderbergers, Council on Foreign Relations, Trilateral Commission, WTO and the national and international central bankers who create the money national governments borrow from them at usurious interest rates.  Since sovereign governments can create their own money, the entire system is fraudulent, even criminally insane!  It is very literally indistinguishable from a gigantic ponzi scheme.   But these issues are discussed at length throughout this blog.  The central understanding I want the reader to take away from this tract is this:

All wealth equals some combination of the earth’s resources and labor (energy) in ways that enhance the utility or value of the resources.  This is the process of production and distribution of goods or services.

Wealth=Resources + Labor.  Labor may be either human or some other source of energy that substitutes or enhances human labor.  (Thought is a form of human labor)    Capital is wealth that is stored or reserved to produce more wealth.  Capital is not synonymous with Money.  Money is something economies (people) create to use in exchange of wealth so that goods or services may be more readily traded.  Without money divisions of labor or complex economies would be impossible.  So money is a substitute, or proxy, for wealth.   Money is man made.  It is not created by nature.  It is created by the economies it serves or enhances by making trade far easier and more abundant.

It is impossible to understand the major events that are driving our world without grasping the above essentials.  However, the international financial, industrial, military, and most especially the energy cartels that guide the destiny of this world have a huge stake in keeping things as they are.  They resist change, and that means they resist accurately informing the people, because an informed people would clamor for change: life-saving and life sustaining change.  So the essential economics are not taught – anywhere (with but few exceptions), and the knowledge is suppressed, ridiculed, or condemned as somehow subversive or heretical.

But no matter how they try to distract or fool you, it is becoming self evident that our word is running out of cheap, easily obtainable oil and CO2 and methane gasses are rising far more rapidly and dangerously than we had previously thought, and global warming is taking place at an alarming pace.   Accept this as fact, and then imagine what this means for you, your family, your friends and neighbors, and your communities at all levels, town, city, county, state and so on.  Our entire civilization is built on the availability of cheap energy, mostly oil or coal (carbon-basedl) energy that replaced human or animal labor.   That source of energy is not sustainable!

Few people realize the extent that carbon fuels play in our civilization.  It literally runs on, and is dependent upon oil.  there are no cheap sustainable substitutes.  Coal is choking off the planets ability to sustain life.  We have already passed the levels of atmospheric carbon saturation the best scientific thinking allows for maintaining life as it developed on earth: 350 PPM.  Polar and glacial ice is rapidly melting.  Severe storms and floods are increasing.  Tropics and desert areas are expanding.  Oceans are dying, along with coral reefs and plankton.   Permafrost is turning into mushy tundra.  Large segments of the world’s population cannot obtain food or potable water.

Solar and wind energy cannot be developed in time to replace fossil fuels, especially while the energy and banking cartels wish to exploit the situation to milk every last drop of wealth from the planet, and its people.  Shame on those would despoil and defile our God-given planet so they can own one more yacht or Lear jet.  These vipers think nothing of killing millions in their wars to secure more oil and other valuable resources, and they are killing our planet in the process.  They imagine that their great wealth will insulate them from the destruction they sow, but they are wrong.  It will all catch up with them eventually.

Meanwhile, our grand global  oil-based  economies and the envisioned governments built upon them will collapse.  As they do, new community-based economies will take their place.  These new local economies will be largely, if not entirely, self-sufficient, and sustainable.  If they cannot produce all they need, or easily import things they can’t produce then they must be able to trade desirable surplus products or resources from nearby communities.

Speaking of resources, Henry George and others  favoring kinder, gentler forms of capitalism, have be making a sound case for centuries for public, or community ownership of resources but the greedy captains of capitalism and the bankster barons would not hear it.  Thus we stand on the brink of socio-economic collapse.  No, we are already in the early stages of that collapse.  But like the snowball or avalanche it will gain force and speed as it goes down.  It could be halted and reversed tomorrow with the proper systemic choices; everyone who wanted to work or go to school could do so with only small concessions from the ruling classes of oligarchs and plutocrats, but it will not happen, because they are pathologically, suicidally power mad.  Those wealthy predators and societal parasites who are at the top will not allow it.  They see the aearth as there’s for the taking.  So it is; so it always shall be.  Or so they think.   But people will wake up eventually, after enough pain – good ol’ boy “shock and awe”.  People will realize sooner or later the depth and degree of the lies, fraud and deception they’ve been subjected to from all corners of our society, left and right, legally and institutionally, and from the media and educational institutions.

Sooner or later the people will realize that democracy means that economic and political sovereignty belong to the people, to the citizens, and flows or is delegated upward from that basic level.  Once resources, production, and money are owned and controlled by the citizens of a truly representative government (at any level: city, county, state, regional, etc.) the a real shared prosperity of abundance can be had by all.

Resources are, of course, natural resources: water, air, land, oil, natural gas, metals, stones and gems.  These are all given to the people of this earth in abundance.  Who gave them all to the rich and powerful to squander or use to extort profits from the people, the commonwealth?  They took them of course.  The methods and means by which these resources were appropriated are another large subject beyond the scope of this article.  But the fact that it happened and the need to remedy the situation is crucial to the well-being of people on this planet – perhaps their very survival.  What follows is essential.

Resources and the way they are worked (processed using labor or it’s proxy energy) allow for the creation of all the material necessities, comforts, enhancements or luxuries of human life and civilizations.  Even money is linked in some way to resources or labor or tied to the debts incurred against these essentials of wealth.  Without natural resources and labor there can be no wealth!  Money is a substitute for wealth, so it is also a proxy for resources and labor (or energy to power machines to do work).  But money is not a natural resource!  It is a man-made, or social construct use to facilitate exchange of wealth (goods and services).  It is the cartels of central and investment bankers that have sold the public on the false idea that money is gold, or even silver, nickel, copper or any other natural resource.  They own the lion’s share of the world’s gold.  It is the easiest of the precious metals to control the market, thus the price.  They own almost all of the world’s gold coin and/or bullion.  Yes, governments may store and warehouse it for them, but it is the private central bankers who own it.

I’ll try to tie all this together and add some concluding thoughts in the next installment.  Stay tuned….

A Christmas Message from Jere

A Christmas Message from Jere:

By Jere L Hough

The primary message Jesus taught was “love”, in the heavenly or divine sense of the word.  He enjoined his followers to love one another even as He Himself had loved them.

Of course He also taught and demonstrated Peace, Justice, Mercy, Forgiveness, and many other eternal values and divine attributes, but it seems to me they all flowed from, and were the result of, His “New Commandment” about Love: to love each other as he loved us.

Indeed, we talk about the horrors and indignities of poverty and war, hunger and starvation, and man’s unceasing inhumanity to his fellow brothers and sisters, but how does that talk translate into action on any large scale?  The refusal to see others as “brothers and sisters” looms large in this message, because that is precisely who we are if indeed we are spirit-born Children of God who are doing our best to first find God’s will and then serve it with love.

Only a proper recognition of the brotherhood of men under the fatherhood of God will prevent the strong, rich and powerful from exploiting the poor and weak. And this escalating exploitation, in a word, is the prime cause of most of the human sorrows in our world today.

There are solutions for all these economic and social problems, but they are all based on loving one another as brothers and sisters, as Jesus commanded.  Let us especially remember on the day we honor Jesus’ birthday that “LOVE” was the “prime directive” in all Jesus’ teachings.

When a “critical mass” of “humans becoming” live by this “prime directive” then “peace on Earth” can become a reality, instead of a hope or a prayer.

God does love and bless you, each and every one.  “Go and do likewise”.

The First Principle of Money

The First Principle of Money

The essential first principles are being lost, or buried, in the discussions and debates about money.  There is almost a universal confusion surrounding the difference between money and wealth.  Without clarity on the essentials and fundamentals in any discussion understanding cannot be obtained.

Wealth is always some combination (0 to 100 percent) of natural resources and labor (creativity and invention are types of labor) that results in a product or service.

Money, by distinction and definition, is not wealth, but a substitute or proxy for wealth, used for the exchange of wealth (goods and services).

This is the most basic and fundamental distinction between money and wealth that exists, and when that distinction is blurred or erased, rational discussion on either subject is impossible.  In today’s environment that is so hostile to the truth this blurring of definitions is nearly universal, as well as intentional.  It serves the entrenched “private money interests” to promote and protect this ideational confusion.

George Orwell said it plainly:  “during times of universal deceit telling the truth becomes a revolutionary act”.  A restatement of the obvious is the first duty of those who wish to get beyond propaganda and modern self-serving fairy tales and myths.

Money can take almost any form, and historically it has, from gold to cattle, from grain to salt, and hides to land.  These are all forms of wealth, commonly called commodity wealth with the exception of land, which is known as “real wealth” or “real estate” because it has certain distinctions that commodity wealth does not.  Notes or deposit receipts for grain, metals, gems, or other items of value have served throughout time as a safer, more convenient means of transferring payment.  Here the reputation of the issuer was the key factor in its acceptance.

But the point here is that “money” is a medium, or means of exchange that takes the place of the items being exchanged.  It is not the things themselves.  When items of value are exchanged that is called “barter”.  Money is used in place of barter.

The most important thing about money is its universal acceptance among the people belonging to that economy, state or nation that is issuing or guaranteeing the money.  It is the taxing authority, or the authority of government, that properly legitimizes what we call “money’.  Currency is circulating money that should be issued in sufficient quantity to support a prosperous and healthy economy, commerce, trade, goods and services.  Balance is essential.  Both too much and too little currency are damaging to an economy and its people.

The central controversy around “money” or “currency” is, and has always been, who gets to issue and control it.  In Western Civilizations up until about 350 to 400 years ago it was usually the government, or treasury, of a monarchial state or principality that issued “money” or currency.  This could be done in many ways, but most commonly it was through its agents, noble houses, tax collectors, sheriffs, or whatever sub-authorities that existed.  Temples and churches were also employed as tax collection agents, as it was easier to collect a tax when disguised as a donation to spiritual authorities, or “agents of God.”

The key point in the above is that the power to issue and control money has always been inseparable from the power to tax, and that power has always been some form of government authority and control of a given area and population.  That was true generally, until the rise of central and investment bankers.  This was during the age of Mercantilism, when monarchs granted licenses to companies and corporations in profit sharing ventures on land and sea.  They also licensed trading and professional “guilds” in return for shares in their profits.  But it was the “Smiths”, the Silversmiths and Goldsmiths, particularly the latter, that became wealthy enough to rival and even exceed the temporal power of the traditional ruling nobilities, kings, princes, dukes, barons and such.

The great growth of wealth of the Goldsmiths was propelled by the discovery of a practice of issuing many times more “receipts” for gold or silver than was actually on deposit.  Thus they collected many times the interest charged on those notes than otherwise.  This practice grew into what we know today as “fractional reserve banking” or issuing (loaning) many times the value of actual deposits.  This “loaning” of fractional reserve based “money” actually constitutes the creation of money “out of nothing”.  More accurately it creates it out of using the borrower’s “promise to pay” as an asset on deposit with the bank.  This means that if the borrower defaults, then the underlying “asset” (promissory note) is worthless.  The bankers recourse is to rely on whatever “collateral” the borrower may have used to secure the loan.  Thus “repossession” of cars and houses comes into play.  But I digress.  The point is that private bankers essentially grew wealthier and more powerful than rulers, and became the issuers of “money” or currency.  Since the early Central Bankers were Goldsmiths, and they as a group possessed and controlled most of the refined gold, gold became the standard or “preferred” currency, especially when trades were between different economic areas or nations.

More accurately, it was the bankers notes supposedly “backed” by gold, or gold receipts, that became the circulating paper currency because of its convenience, and ease of use.  They key here is that the “paper” money was issued by private bankers, rather than by the government authorities or treasuries.  This, more than anything else, led to the distrust of “paper money” improperly called “fiat money”.  Perhaps no other word is so commonly misused today as “fiat”, as it is applied to money.  Fiat does NOT mean paper money!

The word “fiat” simply means “by decree of law”.  It is money because the governing authority declares that it is “legal” money, and will be accepted by all government agencies and taxing authorities as “legal tender”.  This universal acceptance is what makes money money, or currency.  Gold or silver coins are, or were, while they were legally circulated, “fiat” money.  The “fiat” part simply means the coin was stamped or minted with a specific face value, and is not valued at its market price at any given moment (even assuming that can be practically ascertained at the time of transaction, which is an impossibility).

To sum up, wealth and money are two separate things.  Wealth has value as a good or service rendered.  Money has value mainly in its exchange for wealth.  Commodity money such as gold and silver are controlled by a small consortium of people who have a very special interest in propagating the lie that money is gold and vice versa.  Of all the commodities that could be used as money, gold (and all the rare and precious metals and gems) are the most subject to the market manipulation of the world’s major holders (including the mining companies).  The ugly game is called Monopoly.  It doesn’t matter if it’s a private or a state monopoly.  They are all destructive of true freedom and liberty.

Chains do not have to be of iron or steel.  They can be less easily seen, as in the economic variety.  Control of a nation’s currency is the same as control of that nation, or people.  When one controls the means by which one eats, or earns a living, or finds shelter, there is little need for visible chains.  Governments are no better or worse than those who control them.  The same is true with banks.  However banks are supposed to operate for the profit of those who invest in them, while governments are supposed to operate for the general welfare and benefit of the people, the commonwealth.

When private, for-profit enterprises become more powerful than governments, or in fact control them or their representatives, then the populations under those governments are no longer free from oppression.  When money, PR and ad campaigns decide elections then that government is no longer representative of the people, but of the money interests, and those who create, regulate, distribute and control the money and its value.  Political democracy is not possible without a fair degree of economic democracy.  The voice and will of the people must be represented in each of these arenas of organized and civilized human life.

When the proper balance between the economic, political, social and spiritual life of a nation is obtained, then, and only then, will that nation be truly “free”.

Jere L Hough


The Triumph of Secular Totalitarianism: The Death Of American Ideals of Representative Government

As child of the “Great Depression” and WW II, I’ve spent over 50 years researching the disease that was/is killing America, and I’ve always talked or written about the symptoms, signs and trends of our malaise, and ways I thought we could stop it.  Since the end of WW II I always thought we could reach down and find ways to heal ourselves, and the world, to find answers to poverty, hunger, disease, child and female abuse, the wage slavery of the machine age, and so on.  It didn’t happen; it just got worse for most and better for a few.  The disease is Economic or Financial Predation.  It is no less than a war against the middle and lower classes using financial and economic methods to siphon off their wealth.  Their goal is to enslave most of the populations through debt, even to the indebtedness of their children and future generations.  This has already been done, if the present financial paradigm is continued, and the rules are not changed, or considerably reformed.  Representative government now means a government that represents the corporations and Wall Street.  It is no longer a government that Lincoln called “of, for and by the people”, but one “of, by and for” the “Too Big to Fail” financial interests, the investment bankers, central bankers, and international monetary trusts like IMF, BIS and World Bank.

An incredible amount of wealth (your wealth) is devoted to selling the illusion of representative government to the people.  The PR campaign begins at birth and continues on until your “final arrangements”.  It comes in the form of TV, radio, newspapers, magazines, mail, email, flyers, public and private educational systems from K-12, higher education is all controlled by the financial interests, no textbook is published without the sanctions of their accreditation institutions, no major publishing house will publish or sell a book not approved by them, or that gets too close to the truth.  The light of truth hurts their eyes, and they will not allow it.  Facts must be arranged so as to support their illusion, just like any stage magician, rather than the reality.   The “Secular Totalitarianism” is subtler than preceding versions of the military or religious type, but it is just as real, if not more so.

With the exception of a brief and shallow burgeoning of the economic middle class during the post-War 1950s and 60s, the gap between rich and poor has been growing exponentially, and the lot of the so-called “middle-class” of tradesmen, shop-keepers, and skilled laborers has grown far worse.  I do not undervalue the great technological and scientific gains of the past century.  The average person of western (American or European) culture and civilization enjoys far more health, sanitation and communications benefits than any previous generation.  But the losses are less visible, more intangible, and harder to measure.  What does it profit a man to gain the whole world and lose his soul?  And even the world that man hoped to gain is being destroyed and corrupted by his greed.  Environmental disasters like the BP oil spill in the Gulf of Mexico are only the beginnings of a worsening chain of catastrophic events in the making, unless we reverse the trend.  And I don’t see that happening in any real way.  I see untold billions being spent to make us believe real changes are being made, but it is all “shuffling deck chairs on the Titanic” as it sinks.

Most people today wear the invisible chains of debt-slavery to the moneylenders.  Few have anything at all like a positive asset to debt ratio, and are only a few paychecks away from losing the house, car, farm or business that is heavily mortgaged.   Widows and the aged are being foreclosed and forced out into the streets for as little as unpaid water bills, even those in dispute.  The massive confiscation of middle and lower class wealth is nothing short of criminal.  Indeed it is the epitome of “organized crime” similar to what was once called the “Mafia”.  Only now its all legal.  It is they who have “legalized” it, through their control of the “representative process”.  That means they control who get elected.  They even offer you a choice A or choice B.  You get to pick the flavor or style of your controllers, who actually represent the money-men or the “artificial people” called “corporations” who now can use their wealth openly to support their hand-picked and groomed candidates.

Until about 1999 or 2000 I thought the electoral process and the education of the people might turn things around for the better.  I tried to warn people every way I could that a new financial oligarchy was being planned, and the plans were being realized faster than I had thought possible.  I repeatedly warned of the “coming” of materialistic (secular) totalitarianism.  A synonym might be Fascism, which really means the all-powerful industrially controlled secular state.  Oh yes, religions would be allowed, even sponsored, if they aligned their creeds and slogans with those of the state.  Eisenhower warned of the “Military-Industrial Complex” in his exit speech to the nation in 1961.  Few bothered to listen.

From 2000 or so up through the past year I viewed the situation as a patient of life-support, comatose but with hopes of a miraculous revival.  I saw the economic collapse coming, and warned of it.  It was apparent to discerning souls when the Savings and Loans collapsed in 1989 that the system of money and credit was rotten to the core.  But until lately I had thought it possible to repair the damage.

Now I think it is dead.  American representative government has died.  That great and noble goal envisioned by Jefferson, Paine, Franklin, Adams and their extraordinary co-conspirators that founded the USA and wrote the Constitution and Declaration of Independence have seemingly labored and died in vain.  Let us mourn for America.

Let us mourn for the world, for she has lost the light of true liberty.

Are you saddened?  Are you angered?   Are you outraged?  You should be all these and more.  I am.  For those who are incredulous, or the scoffers, I can only ask you to examine the volumes of evidence I, and others, have gathered to make this, or similar supporting arguments.  This next statement of fact is crucial to the proper understanding of the historical events we lump under the title of “The American Revolution” or “The War for Independence”.

The American Revolution was about establishing “Economic” as well as “Political” Independence from England. We achieved a measure of both for a short while, in certain places, but these achievements were quickly erased, and the “illusion” of political and economic freedom took the place of the real thing.  It’s a shame more people have only a surface knowledge of history, if that.  Worse yet is the ignorance of the history of one’s own land, and people, and it’s social, political and economic growth, or evolution.  This makes it so easy for those that would be our masters in the various areas through gaining control over our sources of information and education.  That is exactly what has occurred over the past 200 years or so, and most noticeably in my own lifetime.

Yes, I have been an eye-witness to the results of banking buyouts, mergers and consolidation.  I’ve seen the degradation of the local independent news outlets who were eventually closed or bought out by the news conglomerates.  I’ve seen the local radio stations get gobbled up by the Murdoch “Clear Channel” and Fox networks.  News managers now decide what stories they will highlight or even cover or report.

I look around me and I see no political or economic “independence” anywhere, except among criminals who avoid gangs.   But like a frog who will remain in water brought slowly to a boil, most of us don’t notice the changes, and won’t, until it’s too late.

What people fail to realize is that the early European Central Bankers soon replaced monarchs as the new aristocracy. These bankers became the real power, using the money of both France and England to finance both sides of those wars (and over a hundred years of smaller wars between monarchs). However they made a financial “killing” in the London stock market with their advance news of England’s victory and their manipulation of the Franc and Pound.  With the victory of Wellington over Napoleon, England became the dominant power in the “Old World” and the Bank of England under the Rothschilds dominated the British crown and parliament.   The Bank of England became the wealthiest and most powerful institution in the world, and thus the maker and breaker of kings and queens.  Their power in the “New World” had not yet been fully established but they had American agents working to establish their banking system as the official one in the “Colonies” and the later “USA” too.  England has always had a strong influence over American politics.  They were the Royalists, Loyalists, Tories, and many of the upper classes who profited by maintaining loyalty to England made up these parties.  It was these divided loyalties and philosophies that made forming the new government so difficult.  Once the formation of political parties took place with the divide between Jefferson and Hamilton, the international central bankers had laid the foundation for establishing their monopoly over the young nation’s money, and thus gaining control over it’s political machinery.  The issue of who controls (issues and regulates) the money supply will always trump other channels of power, including blood-line nobilities or traditional organized religious power.  It most certainly controls or strongly influences the electoral process.

The essence of the corrective process is the recognition that sovereignty, taxation and money control go hand in hand.  They are joined at the hip, and always have been.  Here it must be remembered that “sovereignty” is a word that few people understand.  This has been made so intentionally, by the money establishment.   Sovereignty means the unhindered ability to make choices, or decisions.  The word has traditionally been reserved for rulers: kings, emperors, conquerors, and such.  Sovereign power has usually been thought of as from the top downward, through a chain of command or authority.  But in a representative democracy or republic, it is the individual citizen that is considered “sovereign” and all governments flow from the consent of the people, upward.

The struggle for humanity has always been to achieve adequate and proper “representation” in any given government.  When that happens a degree of civil tranquility and happiness follows, as does commerce and industry.  When it doesn’t, and tyranny ensues, there is civil unrest and chaos.  But fair representation cannot happen without a measure of economic freedom, and that includes freedom from want of the basics of life.  There can be no political freedom when the way one votes determines whether one’s family eats or not, or has a place to live or work.  That is merely the “illusion of freedom”.  Political and economic freedoms go hand in hand in the same way as do “sovereignty, money creation and taxation”. These are inseparable in any fair and just representative system.

Our Founding Fathers knew this when they appointed to congress the power to “coin (create) money and regulate the value thereof”.  However, the banking industry has waged a 200 years war in order to claim this power to itself.  There was the 1st and 2nd Banks of the US that were ultimately defeated by President Andrew Jackson.  He wanted his gravestone to read “I killed the banks”.  These were private banks that were chartered by the USA as “National Banks”.  They were not truly national, as the name deceptively implies.  The Central Bankers won this war over money creation in 1913 with the passage of the Federal Reserve Act and the creation of the privately owned Federal System and its strange hybrid of what has come to be known as the “Fed”, a board of governors that are part Federal (actually government appointees) and part private.  The private segment must be approved by the president, but only from a list of nominees made up by the bankers.

The point of the above simplified explanation is that the private Federal Reserve System actually controls the money and monetary policy of the USA.  Moreover they have done this while pretending to be a part of the federal government.  Furthermore the bankers have waged a 200 year propaganda campaign against government and government controlled money, the most massive disinformation campaign in all the world’s long history.  That is why they can argue for “less government” or “less regulation” (of their activities) so that they can remain unchallenged in their authority over money, trade and commerce.

Of course there is more, and tons of supporting evidence for all the statements above.  Most of the sources are listed on my website, https://wealthmoney.wordpress.com .

However the most important part of this summary is in the title.  We no longer have any meaningful or true “representative government”.  What we have is a financial oligarchy supported by military and industrial power.  We have a financial empire for the benefit of the few and privileged, and financial pyramid schemes to soak every last dollar from the little guy, and keep everyone in line.  We have a kind of financial “Totalitarianism” never before seen in human history.  That is the tragedy.  The hope is that somehow the people can awaken to their true plight, or the congress awakens to its duty to reverse the Federal Reserve Act, and reclaim for the people the power to create and regulate money.   That hope is growing so remote that it now seems impossible to me.  That line may have been crossed 40 or 50 years ago.  What we once had may indeed be dead, but we can and sometime will build something better in its place, something that will include economic freedoms in its list of rights and responsibilities.  I know this in my heart of hearts.

Before listing a few sources and resources, we live in a time when I must make the following disclaimer.  I am staunchly in favor of a true “free enterprise system”, although the meaning of such terms must be re-thought and redefined.  Although the name of Capitalism has been covered with the foul stench of corruption and abuse, I am still a “Capitalist”.  Communism is a decided step backward, toward more primitive times.  Socialism is a mixed bag, depending on whose meaning is attached to it.  Many areas of enterprise could be profitably socialized, including community services and natural monopolies.  Should all the earth’s water be privately owned and controlled for the profit of a few?  I don’t think so.  What about other natural resources?  Should gas, oil, wind, the oceans be privatized?  Think about it.  The late great Henry George wrote on these subjects, and still ranks as the best selling economics writer of all time.

The “privatization” of resources like oil, water, and minerals may have been inevitable at some point in our evolutionary path, but it is no longer so.  A new paradigm must be envisioned and embraced by those survivors of the old one, and that paradigm must include a redefining of what is, and should properly be, private property and what should be public, or common, property.  Natural resources should be controlled and owned by the populations that inhabit the areas that these resources are “natural” to.  Even air and potable (drinkable) water are natural resources that private corporations or individuals will attempt to monopolize, or “cartelize”.  This may even be the “trigger event that will move the people to action, if something does not trigger it before then.  Lord knows we need some kind of “trigger” or wake-up event, but if oil spill disasters, massive pollution kills on land and sea, endless foreign wars, and economic collapse (only the first waves have hit us yet) haven’t brought the human race to its senses I’m not sure what horrendous events it will take.

The good news is that a better human race, a higher civilization, will eventually emerge from the crash of the current unsustainable paradigm.  It will be far more harmonious with the Earth and its environment, with its remaining people.  It will be more sustainable, peaceful, self-sufficient, localized, regionalized in economic activity and more federalized in its national and international political relationships.

It will be a better world for the generations that come to inhabit it, although its people will be fewer.  It’s just too bad the wake-up cost had to be so terrible, and chosen as a matter of survival, rather than of peaceful choice.

The “Triumph of Secular Totalitarianism” will be short-lived, although not short enough for those who will be caught unprepared or unprotected.  It is universal law that iniquity contains the seeds of its own destruction.   Man may “play” at being God, but only for a season.  After that season the folly becomes self-evident.

Shortlink:  http://wp.me/ps7Ei-5d

In a Nutshell

It all comes back to the central issue of “who has the power over money creation?”!! Either it is The People, by and through their sovereignty via their legitimate governments, or it will be as it is now. The current system is money creation by the illegitimately chartered Private System of the Federal Reserve. and the smaller banks via the fractional reserve system.

Private money creation is the usurpation of the rightful sovereignty of the people. The sooner the people learn that, the sooner we can return to prosperity.

All the solutions are really very simple, once one breaks through the corrupt current paradigm. That includes the instantaneous repayment of the fraudulent National Debt.

The answer is to shift the ownership of the Federal Reserve System to the People, and make money-creation truly *sovereign*, and in control of the People – as it should have been all along.

The People must awaken and see the nearly invisible chains of debt-slavery that now bind them.

Reclaim the sovereignty of money creation and regulation given us by our Constitution.