The UsuryFree Eye Opener

The UsuryFree Eye Opener is the electronic arm of the UsuryFree Network. It seeks active usuryfree creatives to help advance our mission of creating a usuryfree lifestyle for everyone on this planet. Our motto is 'peace and plenty before 2020.' The UsuryFree Eye Opener publishes not only articles related to the problems associated with our orthodox, usury-based 1/(s-i) system but also to the solutions as offered by active usuryfree creatives - and much more for your re-education.

Monday, April 15, 2013

Usurious Commercial Banking is Freedom, Interest-Free Government Money is Tyranny

The Daily Bell is indeed back: trying to reframe the debate once more. Saying Government money printing is always bad because the Money Power controls the State. There is some truth in this but as always evades the real issue. The elves passionately defend commercial banking while not wasting a single word on usury. But Usury is the ultimate Centralizer of Power.
Morphing the classical Marxist vs. Capitalist dialectic into public vs. private, the elves recently have been trying to regain some lost ground (see here and here). Their latest effort is ‘Real Evil: Attributing Money Creation to the State‘. Money Power controls the State, they correctly note, while ‘forgetting’ the Money Power is the Banking Cartel they are simultaneously defending as ‘free market banks’.
And ‘t is true: the fact that the Government creates a monopoly, only to hand it to the Money Power to milk the masses and start World Government just shows how utterly subservient to the Money Power Governments all over the world are.
Here’s the power pyramid again, it helps to keep a clear view of what is actually at stake.
The Protocols do not promote a free market Utopia. They want an all powerful World State. All its proxies see strong states. Nazism, which is a typical Money Power system, strong State, one Fuehrer, collectivist. Marxism, with its omnipotent State.
The free markets of Capitalism, aka the Money Power Transnational Monopoly, are just a ruse, it’s all one big block. Both Capitalism and Marxism are monopolies.
It is a common and grave mistake to equate Government with the Commonwealth. If it were not for the Money Power, a national Government, China, Russia or the US would have ruled the world. It would not be much more pleasant.
Anything centralizing power in State hands is Communism.
The reason we promote State money is because at this point it would devolve power from the top to the next layer. But when the State bears down on further decentralized money (like the Austrian CB closing down the Wörgl, or indeed as the Dutch Central Bank did with the Gelre), we resist that vociferously as fascist.
The issue is the centralization of power. This is the Money Power game and usury, with its 5 to 10T yearly wealth transfer, most of which ending up with the 0,0001% is the ultimate centralizer of power.
Public Banking
Public banks are better than private ones. The interest ends up with Government instead of the rich. Public Banking also allows reasonable financing of the national debt.
But: Public Banks have been typically used by the Money Power to build up nations. Just look at China these days. But also Germany after the war, Russia today and the other BRICS, most of them have public banks. Even in the USSR and its client states one had public banks who lent at interest.
This is also their main problem: they don’t end usury, at least not for the people. As a result, the poor will lose more than the middle class, who can compensate the interest drain with rents they get from the poor. The usury will concentrate power in the hands of the state. And of the monied classes, as they will continue not to face real competition in the marketplace because the many are burdened with cost for capital, while Transnationals are not.
So we should have interest-free public banks. That would still not be entirely ideal, but it would end the Money Power as we know it.
Classical populist proposals still don’t properly address the interest issue. They liberate the State of interest, but not the people. For instance Greenback proposals combined with usurious full reserve banking. However, modern thinkers on both the Greenback and indeed also Social Credit (which also is classically combined with usurious full reserve banking) are moving on: many of them are starting to see that credit creation is too simple not to do it. The problem is not money creation, it is raping the public with interest on it.
A grave concern with Public Banking reform at this point is, that the growing support it rightfully enjoys is easy to co-opt for the Money Power. My hunch is that they would want to nationalize a number of banks anyway, mainly to unload their ‘balance sheets’ on an unwitting taxpayer. Once Government has sorted through the multi-trillion damage they could again be privatized.
Banking is One
While impudently playing the private vs. public dialectic, ignoring whether power is devolved or usurped by the State, let alone usury, the Daily Bell show their real colors as the great defenders of Wall Street. It’s all a matter of statist Central Banking, according to the Elves, but also Ron Paul and all the others. Hence the ‘End the Fed’ mantra. These bad CB’s do the money creating and mess up the very fair free market operations of the banks.
But Memehunter has completely dispelled that myth. The Fed manages the volume, but the money creation itself is private: 97% of the  money creation is done by the commercial banks.
Of course the Daily Bell doesn’t like fractional reserve banking anyway: we will all feel much better when we can pay interest in Gold. That’s really sound money, according to the elves, Gary North et alia. Honest.
Moreover: Banking is One. What use is it to talk about Money Power if we don’t understand the Money Power is the banking cartel? There is no competition between banks. Money Power Gold Banks in a ‘free market for currencies‘ is just a bad joke.
We all know the CB’s were built by the banks, not the other way around. The banks own the Fed outright. They nationalized most other CB’s because private CB’s got a little too obvious due to Hitler. Originally they were lenders of last resort, maintaining stability in the system, necessary to maintain control of the money supplies of the world.
The Daily Bell and all the others would have us believe there is too much regulation, the Marxists tell us there is not enough regulation.
But the problem is banking itself. Too much usury. Too much deflation. Usury and Banking are One. Deflation and Banking are One. They will always look for freedom and the choice of voluntary contracts, preferably enforced by the State. But they don’t mind hiring some Blackwater mercenaries either.
Banking is One and it cannot be regulated, nor can it be reformed. Banking is the issue that has swept through the ages. It was conceived in iniquity and born in sin.
Silver daggers and garlic are what we need.
Further decentralizationLooking at the pyramid we see that Usury free public banking would go a long way, but it still leaves some money power with the State, for instance the power to decide who will get credit or not. There’s also danger of inflation or even the boom-bust cycle, although it would be much less than we have now.
Social Credit, combined with demurrage (REN’s proposal) or usury free, full reserveJAK Banking or Mutual Credit Facilities, is one way. It would almost entirely devolve money power to the people and the market. The money creation would be debt free, all the seignorage will be with the people themselves and usury would be eradicated. The State would still print it, but it would gain nothing from it. It also would not gain from manipulating the volume, which would be very hard to do anyway. It could only really inflate, but the people would be fully compensated for this inflation, because they would get the inflating money themselves.
Or we could have a fully interest-free credit based money supply, through Mutual Credit. It would probably still need some Social Credit to fix the gap, the difference between total demand in the economy and total output. The State could provide the Social Credit, the market would provide MC Facilities. They’d finance themselves with handling fees.
The case for regional currencies remains: large currency areas are intrinsically unstable, as lesser competitive regions would have structural capital outflow, with deflationary pressures in the regional economy. This must be fixed and regional MC based units seem ideal for that. This also further devolves money power.
And we should of course forget about monopoly and legal tender. If a currency can compete it has something to add. It should be allowed to thrive. Cyber units come to mind. MC based units would dominate any free currency market. Gold would be useful only for store of value purposes. Gresham’s law demands it and nobody will borrow Gold at 5% if he can get credit at 0%.
This would leave us with a financial industry with a maximum of 1% of GDP. A GDP that would be much lower, as many activities would be demonetized. Finance would be a boring and simple trade, just what it should be. Rent seeking would again be considered tasteless and unbecoming.
The decentralization the Austrians promote with their wholly bogus ‘free market for currencies’ is useless: it ignores Usurious Usurpation. It hides behind a phony public vs. private dialectic.
Devolving money power means getting it to lower levels of society. At this stage Government should most definitely grab back the monopoly, simply because it devolves power. Further decentralization through free market units and lower level Government (State, County, City level) is crucial.
But first and foremost we must address usury. No monetary reform without ending usury is real. Nothing that does not address the 5 to 10T per year wealth transfer of which at least 1 to 2T in the US alone can be seriously considered. Both Public Banking and the Greenback at least provide the State with interest-free money, saving $450 billion per year in debt service in the US alone. But they don’t fully end usury.
Interest Free public ‘banks’, we need another name, or private Mutual Credit Facilities would both be fine. Social Credit remains important.
Meanwhile, Government reform is way beyond the horizon. Discussing it now mainly serves to analyze possible faux-reforms that are inevitable and to get a clear picture of what we want.
That’s why free-market units are so important. We don’t have to wait.
Getting rid of the Banks and openly declaring them the main enemy is definitely not yet a popular message in the Alternative Media. Classical populists never took their thinking to its logical conclusion.
But the Banking Cartel with its centralization of power through usury and deflation are indeed what we are up against.
NOTE: This article is originally published at this website:


Post a Comment

<< Home