By: Damon Vrabel
Canada Free Press
February 20, 2010
I have been hearing a lot of chatter recently in coffee shops and lunch restaurants about the financial crisis in Greece. As I eavesdrop, the impression I get is that people are trying to convince themselves the problem is “over there.” They discuss how Greece could have avoided the situation and debate what they should do now. So naturally it is an isolated, country-specific problem “over there,” right?
But isn’t this déjà vu? Haven’t we seen this before?
Indeed. It is the same situation that has occurred in Iceland, Ukraine, Argentina, Indonesia, Malaysia, Mexico, England, and countless other countries. It is not a problem of individual countries, but rather the global monetary system that is built on debt and rules most countries. So the problem is very much “over here.” Most of the world, especially the United States, is just as vulnerable as Greece. It is only a matter of time.
Debt-Based Money and Financial Predators
Countries are vulnerable to attack because their currencies are nothing but floating debt instruments controlled by bankers. This means they are not countries as much as administrative districts for the banks that rule them. This is why Thomas Jefferson said “banking institutions are more dangerous than standing armies.” Bankers and their Ivy League servants can overthrow a country more completely than an army can.
Financial predator George Soros has demonstrated this repeatedly. He is lauded in the Financial Times of London and the Wall Street Journal as free market jihadis from the Chicago School and Harvard Business say he is just playing on a rational, fair, free market playing field. Really? So the Asian currency crisis of 1997 that impoverished many countries was a fair market transaction between several million poor peasants in rice fields and this billionaire predator working in conjunction with even more powerful debt lords behind the IMF? That’s a “free market?” Absolutely, and you are Batman.
Ivy League theory can spin any fiction into fact. These economists are lost in their abstruse academic journals, insanely detached from real life. They would no doubt think that a neighborhood kid stealing a pair of jeans from the local store is wrong, but a billionaire participating in a transaction that “steals” much more from millions of people and loots their country is just a shrewd free market investor. They are advocating the equivalent of letting your kids sleep in a tent in your backyard just after a serial killer who has murdered twenty other kids moves into the neighborhood. Why would we leave ourselves open to such a threat? The United States is in this situation. Literally, the door is unlocked and it is just a matter of time before the financial predators decide to enter. Will we wakeup before it is too late?
The Myth of Modern America
We must recognize that our monetary system is nothing but bank credit, i.e. debt, so it is entirely open to attack. Even if you are not personally in debt, any savings you have is just a measure of how much another person, business, or government is in debt. In our current system, no money gets into circulation except by borrowing from banks. There is no other source! The United States issues no sovereign money! That is not freedom ladies and gentlemen. We are hostage to the “illuminated” debt lords who enrich themselves by putting everyone else in debt servitude, which makes us vulnerable to predators like Soros.
The United States government has failed to do its job as dictated in Article 1 Section 8 of the Constitution for 100 years—control and defend the value of our money. Therefore, the United States is not a sovereign country, and the American people are not free. It is time to admit the truth and either do something about it, or stop blowing up stuff on the 4th of July believing a myth. If your Democrat and Republican politicians do not talk about this issue, they are either too ignorant to have the job, or they are getting banker kickbacks and staying quiet on purpose. Either way, kick them out, stop voting for corporate puppets, and demand real leaders who will do their job (Texas has a chance with Debra Medina in their gubernatorial election). No other issue matters at this point. Most of politics is a ruse to distract you from the fact that your country and your economy are hostage to banks and financial predators.
The Unstable Mathematical Flaw of Our Economic Model
The only way for this system to keep running is for us to collectively go deeper in debt to the bankers. That is why the US government continues increasing the debt ceiling. They have no choice as long as they refuse to do their constitutional job and provide sovereign money that is not an interest-bearing debt to banks. Why must we go deeper in debt? Our economic model is built upon fundamentally unstable math: P < P+I. P is all the money in the economy at any given time (principal). I is the interest that compounds on top of P that must be paid back. So the economy is constantly running faster and faster to generate more P in order to payback P+I. That creates perpetual exponential growth, perpetual increasing velocity, and deeper servitude over time. I grows faster than P, and since production has been sent offshore, there is no way out of the black hole without borrowing more. This is precisely what people like George Soros prey upon—currencies stuck with an impossible debt load. This system guarantees an eventual attack. To repeat: we have no money unless we borrow. We have no way to pay it back unless we borrow more. Borrowing more is precisely what eventually kills the economy and allows predators to become billionaires while the rest of the population loses their life savings. What can be done about this?
Austerity: What the Oligarchs Want to do
Typically when countries get attacked in these ways, they leave it up to the financial powers to tell them what to do. The IMF comes in and protects capital holders by requiring the government to shutdown social services, thereby cutting off the lifeline of the lower classes. This is class warfare in its most vicious form. It literally results in starvation just to protect the cashflow of rich financiers who hold the country’s debt. We also see Greece being required to outlaw cash for some transactions. This is a strategic goal the financial powers have for the world. A cashless society makes people completely hostage to electronic debit/credit cards controlled by the banks. Austerity is a bad plan for everyone except the upper class.
Premature Move: End the Fed
Some say the solution is to end the Federal Reserve, thereby cutting off the financial powers at the top. While it is the head of the monopolistic banking cartel which has no place in a free republic, eliminating it before any real monetary reform might only be the opening for the IMF to takeover. It could also give the top predatory institutions like JP Morgan Chase more power over the people than they already have. The Fed is to some degree a brake on these firms. As long as Wall Street has a money monopoly, thanks to the government’s unbelievable response to the crash of 2008 shutting down smaller banks and consolidating Wall Street into a far more powerful group, I think we want a pseudo governmental organization providing some form of control. At a minimum, we need real money first from a source other than this monopoly.
False Solution: The Gold Standard
Many people say the gold standard would solve this problem. But it only lasted 33 years and resulted in the banking system vacuuming up much of the gold into its own vaults! The gold standard was a ruse. It just required bank reserves to be gold, which demonetized silver and made people completely dependent on interest-bearing loans from the rich people who had the gold. This is not a solution. Gold held in our own hands is indeed debt-free money, which is why everyone reading this article should acquire some, but there is not enough gold to make it a useful medium of exchange in the current economy. It would create a massively constrained money supply, which means we would be as dependent as ever on bank debt. At this point the gold standard would be a step backward.
Real Solution: Asset or Wealth Money
The solution is to create money that is not debt. This would reduce the servitude relationship to bankers and the exponential growth of compound interest—the P < P+I problem. We the people need to make this happen. Expose the fraud of national elections by not voting until you find a leader willing to address this issue. But find such a leader! The ultimate fix must come at the federal level, but until real leaders replace the corrupt ones there now, efforts can be made at the state and local level. Find candidates like Debra Medina in Texas to overthrow the establishment in both parties. Turnoff the TV news dominated by zombie candidates and their political ads full of irrelevant talking points pumped out by the central PR machine in DC. Push your state legislatures to spend money into circulation, rather than borrowing from banks, for infrastructure projects approved by the people (see the Minnesota Transportation Act). Call your legislators, call them again, and have others call them. Take action on this issue! States would then be able to recover some of their constitutional autonomy rather than being unconstitutional hostages to the debt lords. You can also start local community networks that are based simply on serving others (see themoneyfix.org). In such a system, providing a good or service for your neighbor earns you a credit and your neighbor an equal debit, which gives her the incentive to do something for you or someone else in the community ledger. This is not a macro solution, but it is at least a step toward recovering our humanity and bringing our communities together again instead of pitting everyone against each other fighting for limited bank credit. We do not need to be in debt to mega international banks to have an economy and create value! Debt extracts value. It is just a claim on someone else’s labor. We would be far better off without much of the elite financial industry that enriches itself off our debt (though some deeply flawed economic statistics, e.g. GDP, would drop). The notion that we cannot work together without an oligarchy of banker middlemen is pure propaganda that has been pounded into our heads for years. We must rise above it and start the process of eliminating debt and moving on a trajectory toward a more holistic life as sovereign communities and free individuals once again. This is the only hope to begin the process of restoring the American Republic before a crisis far worse than Greece hits home.