Socially Responsible Business Archive


States Beginning to Assert Their Money Power

Monday, January 17th, 2011

Bills have recently been introduced in several states to try to address the money problem. In an article that appeared in Financialsense.com, Robert Kientz describes actions that are occurring in several states. It is unclear how much support the various bills might have, or what their chances of passage might be, but Kientz implies that the state of Virginia has already taken official action to at least study the matter of using alternative payment media other than Federal Reserve currency. He says:

Virginia announced yesterday that the state would commission a study of alternative currencies including gold and silver in House Joint Resolution No. 557. A selected quote from Resolution 557:

WHEREAS, the Supreme Court of the United States in Lane County v. Oregon, 74 U.S. (7 Wallace) 71, 76-78 (1869), and Hagar v. Reclamation District No. 108, 111 U.S. 701, 706 (1884), has ruled that the States may adopt whatever currency they desire for the purposes of performing their sovereign governmental functions, even to the extent of adopting gold and silver coin for those purposes while refusing to employ a currency not redeemable in gold or silver coin that Congress has designated “legal tender”;

Such actions are a hopeful sign that the money power, and the political power that goes along with it, are devolving away from Wall Street and Washington and back to our states and communities. The states have a powerful weapon in the form of the United States Constitution, which declares that, no state shall make any thing but gold and silver Coin a Tender in Payment of Debts.

Of the two metals, I much prefer silver as the value standard, for several reasons. My main objection to gold is that it is closely held by a few banks and governments that are able to manipulate its market price, and thus manipulate the economy if gold were to play a major monetary role. Silver is much more abundant and widely held, and while present market mechanisms enable a few entities to manipulate its market price, I think parallel  mechanisms can be put into place that would assure a freer market giving silver a more stable value. Ideally, however, trading entities will ultimately adopt an objective value measure using a composite commodity standard composed of a “market basket” of basic commodities.

Keynes was not wrong in calling gold “a barbarous relic,” but that’s not the whole story. We must also recognize that central banks, legal tender laws, and credit monopolies are relics even more barbarous than gold. The separation of money and state must ultimately be gained in order to have a truly free and harmonious society.

Read the original post on Beyond Money.

endofmoney Thomas Greco is the author of The End of Money and the Future of Civilization.

The Rise (and Fall) of the Global Elite

Thursday, January 13th, 2011

Although it misses some of the fundamental phenomena that are at work in the world today, like resource depletion, environmental pollution, climate change, institutional breakdown, and the shift toward a steady-state, no-growth economy, this article from the Atlantic is worth a quick read (The Rise of the New Global Elite).

It highlights the growing gap between the super-rich and everyone else, pointing out the peculiar attitudes and rationalizations of the former and the apparent passivity of the latter.

In my opinion, the oligarchs and their minions give themselves far too much credit for their success. It may be true that they are clever, industrious, and hard-working, but so too are con men, embezzlers, and a goodly number of thieves and other criminals. Is it clever and industrious to appropriate for oneself (by force, intimidation, bribery, or manipulation), resources that are by nature the birthright of all (“the commons”), or to use one’s “insider” position to abuse a public trust? Far too many fortunes have been made that way.

The Atlantic article concludes “The lesson of history is that, in the long run, super-elites have two ways to survive: by suppressing dissent or by sharing their wealth. It is obvious which of these would be the better outcome for America, and the world. Let us hope the plutocrats aren’t already too isolated to recognize this.”

The thing that distinguishes a cancer cell from a normal cell is its alienation from the general body—from the “spirit,” if you will, that gives coherence in a living organism. A plutocracy that is alienated from the spirit of the community, like a cancerous tumor, cannot survive for long, it will eventually perish along with its host. –t.h.g.

Read the original post on Beyond Money.

endofmoney Thomas Greco is the author of The End of Money and the Future of Civilization.

States face serious budget challenges; no help from federal government

Wednesday, January 12th, 2011

In a speech delivered in Phoenix last Friday, David Stockman, budget chief under President Ronald Reagan, painted a gloomy picture for the economy.  According to the Arizona Republic, “Stockman told the assembled legislators, business and civic officials and others that the nation’s Capitol will offer no help and probably will complicate matters.”

“Washington will become a fountain of harm as you struggle with our own problems,” he said, but the article did not describe what might spew forth from that “fountain of harm.” It did mention that “His prescription for restoring balance to the federal budget calls for a mix of tax hikes, budget cuts and entitlement reforms, such as means-testing Social Security.” (read more here).

Why was there no mention of the bloated military and war budget, the maintenance of bases in countries around the world, or the enormous levels of wasteful pork barrel spending that Congress has become addicted to?

What is a state like Arizona to do?

The feds will do what they will do. The states will need to solve their own problems using their own resources, despite whatever destructive measures continue to emanate from Washington and New York.

In the coming weeks, we will be offering our own prescriptions for actions to be taken at the state level. These will outline basic measures that states need to implement in order to address their deepening financial woes and to make the inevitable transition to a steady-state economy. What we have in mid will be much more radical and salutary than anything being offered elsewhere. Stay tuned. –t.h.g.

Read the original post at Beyond Money.

endofmoney Thomas Greco is the author of The End of Money and the Future of Civilization.

Ron Paul calls for competition in currency, attacks central bank’s “independence” as “unaccountability.”

Tuesday, January 11th, 2011

Toward Sensible Monetary Policy
By U.S. Rep. Ron Paul
Monday,January 10, 2011

http://paul.house.gov/index.php?option=com_content&view=article&id=1816:…

Last week the 112th Congress was sworn in. I am pleased that I will be chairing the Monetary Policy Subcommittee of the Financial Services Committee, which has oversight of the Federal Reserve. Obviously, this position will facilitate my efforts to ensure that the Fed provides the American people with more information about what they have been doing with and to our money.

Not surprisingly, since my chairmanship was announced, apologists for the Fed have been recycling the old canard about how increased transparency threatens the Fed’s so-called political independence.

By independence, they are referring to the Fed’s ability to greatly impact the economy with virtually no meaningful oversight. We only recently learned that the bankers at the Fed were able to use the latest financial crisis to bail out Wall Street cronies and foreign central banks with billions of dollars that were created and wasted, instead of appropriated and voted on by representatives of the people.

The Fed and its supporters in Congress fought even this small bit of transparency and without this one-time provision in the financial reform act forcing disclosure, we would still not have this information. Indeed, we are in the dark on so much of what the Fed has done. This is extremely dangerous for our country, yet this power and secrecy are defended as some kind of public good, which is patently ridiculous.

Our government is based on a system of checks and balances. With no check on the Fed, it is no surprise it has thrown the economy wildly off balance.

The solution is not to re-inflate the bubbles the Fed created, or to continue to devalue the currency, or to throw billions at failing banks and corporations. The solution is to return sanity and freedom to monetary policy. Forcing the entire country to use a medium of exchange that is subject to the whims of elite bankers and their cronies on Wall Street is not sanity. Hoping that an unchecked, all-powerful, behemoth banking cartel will solve any economic problem is not sanity.

The problems the Fed was created to solve now look miniscule compared to the problems it has created. If “political independence” erodes the purchasing power of the currency by 98 percent and destabilizes the economy with radical booms and busts, all while increasing unemployment and tipping us ever closer to hyperinflation, perhaps it is time to try a little transparency and accountability instead. Better still — we should try giving the people true economic freedom.

Make no mistake: The Fed is not truly independent of political pressure. Its chair is appointed by the president, and it is a creature of Congress. Congress has a duty, albeit a neglected one, to exercise oversight of the Fed. However, even if it was politically independent, it is not independent of the influences of Wall Street. One has to look only at the revolving door between the Fed and the big banks to know that. Disclosures on TARP funds confirm this.

It is nothing short of cruel and criminal for Congress to stand idly by while the life savings of Americans are inflated away to nothing. It is high time that Congress insist on getting complete information on what the Fed has been doing, and for whom. My hope is that exposing the truth will demonstrate the insanity of the status quo and more people will call for sensible changes, such as legalizing competing currencies.

Read the original post on Beyond Money.

endofmoney Thomas Greco is the author of The End of Money and the Future of Civilization.

The Horror in Tucson

Monday, January 10th, 2011

I was shocked and dismayed to learn of the assassination attempt on Congresswoman Gabrielle Giffords and the killing of several bystanders in my home district of Tucson, Arizona. I express my heartfelt condolences to all those whose lives have been thrown into turmoil by this heinous crime.

I think it is clear that such violent attacks are being encouraged by the vitriolic rhetoric that has become commonplace in American politics, particularly the tirades that are directed these days against so-called “liberals.” Such rhetoric only serves the narrow self-interest of power-seekers and does nothing to promote collaborative inquiry and improvements to the status quo.

It seems curious that mainstream news reports about the assassin chose to highlight his alleged advocacy of a new U.S. currency. An Associated Press report had this to say:

In one of several YouTube videos, which featured text against a dark background, Loughner described inventing a new U.S. currency and complained about the illiteracy rate among people living in Giffords’ congressional district in Arizona.

“I know who’s listening: Government Officials, and the People,” Loughner wrote. “Nearly all the people, who don’t know this accurate information of a new currency, aren’t aware of mind control and brainwash methods. If I have my civil rights, then this message wouldn’t have happen (sic).”

Will that kind of journalism serve to discredit all monetary reformers and critics of the money and banking regime? That remains to be seen, but I think the American people, in the face of recent economic events and financial revelations, are now sufficiently informed to recognize the difference between lunatic ranting and sincere attempts to improve the human condition. –t.h.g.

Read the original post at Beyond Money.

endofmoney Thomas Greco is the author of The End of Money and the Future of Civilization.

"Real Money" features Malaysia Conference Presentation

Friday, January 7th, 2011

Real Money: Money and Payment Systems from an Islamic Perspective is a new anthology from the IIUM Press, Malaysia. Edited by Professor Ahamed Kameel Mydin Meera of the International Islamic University Malaysia (IIUM), this book contains contributions from several authors including yours truly. My chapter titled, The End of Money and the Liberation of Exchange, is essentially a transcript of the presentation I gave at the 2007 Gold Dinar Conference in Kuala Lumpur.

In it, I outlined the basic framework for a global credit clearing network that utilizes no national currencies as payment media and no political currency unit as a value measure. As I did in my first book, Money and Debt: A Solution to the Global Crisis, I argued that the various functions that money is supposed to serve—medium of exchange, measure of value, and store of value—can and must be segregated, and described a global payment system based on direct credit clearing, using an objective, concretely defined measure of value, like the gold Dinar, silver dirham, or some composite commodity standard.

I outlined how this Shari’ah compliant approach could provide inflation-free accounting, achieve full employment, reduce the need for foreign exchange reserves, eliminate exchange rate risks, and provide more equitable trading relations among all the peoples of the world.

My presentation can be viewed at http://video.google.com/googleplayer.swf?docId=-1399011433067824706&hl=en

The book is available from IIUM Press, Kuala Lumpur, Malaysia. Email: [email protected]. Phone: +6603-6196-4862

Read the original post at Beyond Money.

endofmoney Thomas Greco is the author of The End of Money and the Future of Civilization.

At last, central banking and legal tender are once again subject to real political debate and public scrutiny

Wednesday, December 22nd, 2010

In what seems to me to have been an unlikely turn of events, Congressman Ron Paul of Texas has been appointed to chair the House Subcommittee for Monetary Policy in the new Congress. In one sense this seems like very good news, on the other hand, it raises some serious questions about the oligarchy’s ultimate game plan.

Ron Paul is undoubtedly one of the few politicians who understands money and banking, but he has some serious blind spots, and call me cynical, but I think that politics at the federal level has been so thoroughly corrupted that I have little hope that anything that promotes the common good can ever come out of Congress.

Still, I strongly recommend that everyone watch the following C-span interview in which Congressman Paul outlines his agenda. It does not go as far as it needs to, but it is an agenda that I, for the most part, endorse.

According to Brendan Trainor, Rep. Paul in this interview makes the following points. I have highlighted what I consider to be the most urgent and important ones (in red).

  • Ron will start by requesting the information that is now due from the Fed from the watered down version of the “Audit the Fed” bill that was passed by Congress.
  • Ron will submit his more robust version of the Bill to Audit the Fed in Congress again.
  • Ron is aware of the twin dangers of his attack on the FED. Criticism of the FED could result in a reactionary attempt to create an even more centralized monetary system, or else “some of my allies who are critical of the FED” who Ron now public-ally calls “GREENBACKERS”, will push for Congressional issue of fiat money. Both of these outcomes have to be guarded against (by those few of us who understand the debate in the first place.)
  • Ron explicitly defends the proposition that the market should be regulating finance, not the regulators. The Market does a better job of regulation than the government. This counter-intuitive idea does require a limited government involvement (not to discount the anarcho-capitalist alternative) that will require
    an atmosphere of “law and order, NOT regulation“.
  • Market regulation through “law and order” means that banks and financial institutions are subject only to ordinary business law: That is, they are free to operate as they please, but they must fulfill their contracts and must not engage in fraud. If they cannot fulfill their contracts, they are to be shut down, not bailed out. Their assets are to be distributed to their creditors (bankruptcy).
  • The surest way to END THE FED is the peaceful, gradual method of eliminating, not the FED directly, but legal tender laws. Allow people once more to use GOLD CONTRACTS and other means of using alternative currencies and specie in domestic business contracts. Let the fiat paper dollar compete with the people’s choice: constitutional “honest money”.
  • Ron correctly deflects the usual straw man criticisms directed at him by those who favor central planning in monetary policy. ie
  • There were numerous financial panics before the FED was created. Yes, there were. But those panics were the result of “artificial conditions” and in any event were allowed to play themselves out by liquidation of the bad debts and bad contracts without government interventions up to the recession of 1920-21. That was the last recession that was handled without government intervention. It was a sharp recession, where unemployment reached nearly 20%. However, because President Warren G Harding did NOTHING, except cut government spending and taxes, the recession was OVER IN A YEAR.
  • If the FED does not intervene, the Recessions will be worse. The corollary of the first objection. Yes, the recessions may at times be worse, but they will be shorter. The so called “Panics” of the pre Fed era rarely lasted more than a year or two, and then the economy fully recovered. The interventionist policies starting with the Great Depression ( a ten year depression) and this one now only prolong the recessions, and in the end, the underlying causes are NOT addressed, leading to a new “BUSINESS CYCLE”.
  • Attacking the FED will harm the US DOLLAR hegemony. Ron: I want to protect the dollar, but within the context of markets. Markets are ultimately stronger than the central banks attempts to shore up the dollar, and nothing the central banks can do will overcome that fact. The Market, in the end, will out.
  • Fiscal policy (Congress) is more important than Monetary policy (the Fed) Ron: they work hand in glove. The Fed basically enables the Congress to spend exorbitantly by creating fiat money to cover them. We have to end the Wars and Global Empire, and we have to end the limitless welfare state as well. IOW, we do have to address fiscal policy, but at the same time, address its enabler, the FED.

Ron explicitly puts forward the idea that the BUSINESS CYCLE as we have known it can be ended. NOT with more regulation, certainly not with more “Central Planning” (that ultimately leads to Socialism, and we know THAT doesn’t work) , but ended  with the limited government ideal (classical liberalism.)

[A major blind spot is the failure to pinpoint interest/usury as the cause of financial imbalance that leads to the “business cycle.”—t.h.g.]

Definitely a radical agenda, led by a peace loving man. Let us all work to explain his ideas as this year’s economic policy drama unfolds. The attacks from the left and the RINO Republican establishment will be vicious and loud. Those of us who understand the monetary debate are few and our voices have few MSM outlets . Even monetarist libertarians will attack Ron. We must resist them to the best of our abilities, by explaining his policies whenever we can.

Brendan

[Another major blind spot is the size and market dominance of firms like Goldman Sachs, Citicorp, J.P. Morgan Chase, Bank of America, etc. Government needs to set the rules of the game to prevent such megalithic financial firms from emerging and manipulating markets. At the very least the Glass-Steagall law should be reinstituted. It also needs to pass legislation that encourages the development of mutual companies and cooperatives in the financial sector. That would be a complete reversal of the policies of recent decades.] — t.h.g.

Read the original post on Beyond Money.

endofmoney Thomas Greco is the author of The End of Money and the Future of Civilization.

The aim of Wikileaks, and Julian Assange’s strategy

Monday, December 20th, 2010

There’s been a lot of speculation of late about Wikileaks and its central figure, Julian Assange. I’ve even seen some articles that suggest that Wikileaks is not intending to provide greater transparency in government or to create a new paradigm in politics, but is in fact a false flag operation set up to abet and sustain the old paradigm.

I’ve just come across this article (Julian Assange and the Computer Conspiracy; “To destroy this invisible government”) which seems to do a pretty good job of analyzing the situation. It includes a number of quotes purportedly from Assange’s own statement of purpose.  – t.h.g.

Read the original article at Beyond Money.

endofmoney Thomas Greco is the author of The End of Money and the Future of Civilization.

Plunder beyond belief, FED reluctantly shows the smoking gun.

Monday, December 13th, 2010

I have for decades been trying to explain the parasitic nature of the global financial regime and the political order that has become subservient to it. Now, the evidence has become so overwhelmingly obvious that even the most dubious and somnambulistic amongst us cannot ignore its meaning.

On December 5 I posted an item that included Senator Bernie Sanders’ courageous speech about the class war that is being waged against virtually everyone by the super-wealthy elite. In that speech, the Senator referenced the long awaited report from the FED that Congress has demanded. This report has started a firestorm involving even the mainstream financial media.

In this recent article, David DeGraw, lays it all out in detail (Wall Street’s Pentagon Papers: Biggest Financial Scam in World History) with numbers and quotes from various sources. Please read it.

Now it is up to us to do something about it.

What can be done? My book, The End of Money and the Future of Civilization, lays out prescriptions for communities, grassroots organizations, businesses, and governments. The time to act is now!

Read the original post on Beyond Money.

endofmoney Thomas Greco is the author of The End of Money and the Future of Civilization.

Class war in America: Senator Bernie Sanders tells it as it is.

Tuesday, December 7th, 2010

This is a video that every American must watch. In his amazing and courageous speech on the floor of the US Senate, Vermont senator Bernie Sanders plainly describes the war that is being waged against the middle class by the super-wealthy elite.

And while you’re at it, read his revelation about who got the bailout money: A Real Jaw Dropper at the Federal Reserve. It’s nothing short of wholesale looting of the American people by the banking establishment.

Here are some excerpts:

After years of stonewalling by the Fed, the American people are finally learning the incredible and jaw-dropping details of the Fed’s multi-trillion-dollar bailout of Wall Street and corporate America.

We have learned that the $700 billion Wall Street bailout signed into law by President George W. Bush turned out to be pocket change compared to the trillions and trillions of dollars in near-zero interest loans and other financial arrangements the Federal Reserve doled out to every major financial institution in this country. Among those are Goldman Sachs, which received nearly $600 billion; Morgan Stanley, which received nearly $2 trillion; Citigroup, which received $1.8 trillion; Bear Stearns, which received nearly $1 trillion, and Merrill Lynch, which received some $1.5 trillion in short term loans from the Fed.

Deutsche Bank, a German lender, sold the Fed more than $290 billion worth of mortgage securities. Credit Suisse, a Swiss bank, sold the Fed more than $287 billion in mortgage bonds.

– t.h.g.

Watch the video here.

Read the original article on Beyond Money.

endofmoney Thomas Greco is the author of The End of Money and the Future of Civilization.