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Posts tagged ‘Economic’


Excerpt: “The Struggle for Money” by H. M. Murray 1957.


The 4 Step Social Credit Solution to the World’s Financial Crisis:


1.             Set up a National Credit Account. At present we have only a National Debt Account; the banks having usurped all our National Credit—to create our National Debt!

 2.             Institute a National Dividend;

 3.             Finance New Production by drafts on the National Credit Account, not out of Savings; and

 4.             Allow a Just Price Discount on all personal purchases, out of income, for final use or consumption—     to adjust book prices to actual incomes.

                (This counters inflation and guides and motivates society      as a whole to increase or decrease, as           required, production).


 Reference:    http://www.scribd.com/doc/171650693/Struggle-for-Money-by-H-M-Murray-Final-Edit


Money Printing Is the Only Thing Keeping the System Afloat

By Alasdair Macleod

Last Monday GoldMoney published my article showing the frightening growth in money-quantities for the US dollar. In that article I stated that the hyperbolic rate of increase, if the established trend is maintained, is now running at over $300bn monthly, while the Federal Reserve is officially expanding money at only $85bn.

The first thing to note is that the Fed issues money because it deems it necessary. The hyperbolic trend increase in the quantity of money is a reflection of this necessity, implying that if the Fed’s money issuance is at a slower rate than required, then strains will appear in the financial system. There are a number of reasons behind this monetary acceleration, not least the need to perpetuate bubbles in securities markets, but there are three major underlying problems.

Government spending

Federal government spending is accelerating, due to rapidly escalating welfare commitments, not all of which are reflected in the budget. Demographics,……

full article at source: http://www.financialsense.com/contributors/alasdair-macleod/money-printing-only-thing-keeping-system-afloat

Natural Money


Money (Photo credit: 401K)

The Story of Robinson Crusoe and guest:

“If there were a monetary system on this island and I, as a shipwrecked traveller needed aloan, I should have to apply to a money-lender for money to buy the things which you have just lent me without interest. But a money-lender has not to worry about rats moths, rust and roof-repairing, so I could not have taken up the position towards him that I have taken up towards you. The loss inseparable from the ownership of goods is born, not by moneylenders,but by those who have to store the goods. The money-lender is free from such cares and is unmoved by the ingenious arguments that found the joints in your armour.

You did not nail up your chest of buckskins when I refused to pay interest; the nature of your capital made you willing to continue the negotiations. Not so the money-capitalist; he would bang the door of his strong room before my face if I announced that I would pay no interest. Yet I do not need the money itself, I need it only to buy buckskins.”In his classic economic treatise “The Natural Economic Order“, written in 1929, Silvio Gisell attempted to explain to his audience that many of the economic ills that were befalling the world at the time were not due to problems with demand and supply, as such, but with an erroneous understanding of money. He used the simple Robinson Crusoe anecdote above to show that a society which insists on “interest money to “allow” exchange” was operating on an erroneous paradigm.

In his view society had allowed banking dynasties to obtain control of not only the money supply but also the mental understanding of what money actually was. He, like the American economist E. C. Riegel, believed money was perhaps the greatest social invention of all time. However, misunderstanding had allowed an elite take over this invention for their selfish gain. Thus Gisell observed that in the midst of plenty society was starving. (We must remember that the book was written during the “great depression”).Gisell tried to educate his peers into the inner workings of money. He spent his life explaining that money was in essence an agreement of mutual reciprocity. He understood that the only entities who could naturally issue money were those that gave value in exchange. Thus governments could never issue money; they could only exploit its natural bounty. To him money was goods and goods exchanged was money. He believed that the best money reflected the true nature of goods. He was therefore against “interest money”. He explained that if the money used by a society was “better” than the goods exchanged in that society the holders of money would be in a stronger position than those who worked and slaved to create the goods and services tha gave money value. Thus he saw through to the essential failure within general financial comprehension in vogue at that time. Unfortunately this misunderstanding continues in contemporary society and is at the heart of the current financial crisis that is bringing the European Union to its knees.

Natural Free Money:

To explain his ideas on natural money Gisell promoted the idea for the issuance of “free money”by governments. By “free” he meant that the money was owned by the people and not banking elites. An example of this money is set out above and can be referenced from the link below.To him efficient money was all about active circulation. To motivate circulation, and prevent hoarding, Gisell propounded that for money to be valid it should require attachment of a stamp, payable by the holder (be it the citizen or a banking institution), each week, at the rate of 5% perannum. This system meant that money “depreciated” by one twentieth each year. This “negative cost” thus ensured that the holders of money were not is a more powerful position than that of the holders of goods. Thus he explained that; “as the grain merchant suffered time loss due to wastage, so too should the holder of money suffer loss through natural depreciation”.We all know that money, in addition to being a medium of exchange, should also be a store of value. Gisell pointed out that at any point the holder of the free money could opt to buy gold or silver. However, this commodity holder he argued, would soon find out this “store” of wealth is not really a store at all.

The owner would have to pay to insure and guard his gold and silver.Thus he brilliantly argued that even the classical “store of wealth” concept of money had a time wastage cost element. In one fell swoop Gisell had cut through the “store of value” fallacy of money. Namely he outlined that the only true store of value in money was “potential reciprocity of exchange” and this reciprocity was contingent on an efficiently functioning market system within a stable society. The “system” was not the money; the system was the functioning exchange. This was the truth then. This is the truth now. However, this truth regarding money has been blinded from the general public. The money power has conditioned the academic fraternity into accepting an “interest” paradigm of money which places the holders and owners of money at a distinct advantage over those who work to provide true value. Thus capital (the earning of interest) has supplanted labour in modern exchange relationships. Gisell powerfully articulated all through his life that once this “essence of money value”, i.e. reciprocity of value in exchange was compromised society, which was built on such exchange, would begin to fail. This failure he believed was at the core of the financial crisis of 1929. It is my contention that it is also central to the economic collapse that we are experiencing in 2012. Only when the lessons and insights of economic pioneers like Silvio Giselle, E. C. Riegel and

Clifford Douglas are fully comprehended and acted upon will our current money crisis be well and truly solved. Until then the true cause of our problem will never be successfully comprehended. Without such comprehension all solutions will only be temporary, ill conceived and doomed to failure. Money is to society as a ticket is to a rail network. The issue is not to own all the tickets and live on the speculation of their value but to have a fully operating rail system available for the use of society, be it citizens or businesses therein. It was Gisell’s view that if banking corporations and institutions were corrupting money, to the detriment of the greater society, then it was the moral duty of good government to legally and administratively modify the operation of money to so prevent this state of affairs continuing in perpetuity. He believed that if such action was not taken society itself would continue to fail.

Today we are at this juncture. Our options are simple. Do we rectify money or wreck society through complicity with InstBars (Institutional Barbarians) who know exactly what they are doing but thrive on general ignorance and conditioning. It is time to make money natural again.


The Natural Economic Order by Silvio Gesell, 1929.


(c) 24th. April 2012 Christopher M. Quigley B.Sc., M.M.I.I., M.A

Stock Market Elliot Wave Count Now Clearer

By: Tony_Caldaro

This recent week played out like the week before: a rally into tuesday and then a pullback for the rest of the week. Nevertheless, most of the world’s indices were higher and Europe gained 5.2%. In the US economic reports came in mixed. On the uptick: Case-Shiller housing prices, consumer confidence/sentiment, Q2 GDP, the Chicago PMI, the monetary base, and weekly jobless claims dropped under 400K. On the downtick: new/pending home sales, durable good orders, personal income/spending, excess reserves, PCE prices, the WLEI and the M-1 multiplier. US markets ended mixed with the SPX/DOW mixed, and the NDX/NAZ -2.9%. Asian markets gained 0.5%, the Commodity equity group gained 0.3%, and the DJ World index gained 0.9%. Next week’s economic reports include: the monthly Payrolls report, ISM and Auto sales.

full article at source: http://www.marketoracle.co.uk/Article30750.html

Monetary Theory of E.C. Riegel

By Christopher
M. Quigley B.Sc., M.M.I.I., M.A.


In a life spanning over 70 years, one of the greatest students of money, and its meaning, was the American E.C. Riegel. Many regarded him as a genius for his understanding of the nature and functioning of money as a human and social institution. This essay is a direct introduction to his main ideas on this subject, as, increasingly, people are beginning to realise the need for a more stable monetary unit. In essence, in his book “Flight From
Inflation” he identified money as the mathematics of value and argued,
that for a democracy to thrive, he believed the “money power” must be
free. He basically viewed any political economic monetary system as socialist.
For this reason he was at odds with Adam Smith‘s view of the World. Indeed, he
felt that Smith in his “Wealth Of Nations” pre-empted Marx as a
social theorist. Regardless of his views, Riegel has come to be respected for
his unswerving belief in mankind and his heroic efforts to champion practical
freedom based on the realities of exchange systems, which are based on value.

The freedom of exchange is the foundation of all freedoms, and the freedom of exchange unencumbered is the truest democratic freedom of mankind. Civilization began with exchange, and exchange began with whole barter i.e. things traded for things. The first improvement on whole barter was indirect barter. This was the practice of utilizing commodities of common use as reserves to be later traded for items of immediate need.

The adoption of precious metals, such as gold and silver, developed this trend. This step reflected a growing emphasis upon facility in exchange. Accordingly, through the passage of time, a new means of completing transactions arose through the practice of depositing precious metals with goldsmiths, who in turn issued warehouse receipts. Such pieces of
paper became negotiable through custom, and so purchases could be effected by
their transfer.

Acceptance of negotiable gold receipts, i.e. promises
of future delivery, marked the first real step toward the utilization of money.
It was at this point that barter was finally fully split into two halves, WITH
THE BUYER RECEIVING VALUE AND THE SELLER RECEIVING ONLY A CLAIM. This was the first faint glimpse of the tremendous liberating power of money. We can also
see that the ideal of money is to split barter absolutely in half, without any
limitations imposed upon the seller. Hence, we realise that money is a device
that operates within the trading community, for that community’s own
self-interest. The necessity of splitting barter into halves in order to
motivate trade is the motivating force: sellers want to sell and buyers want to
buy with the least amount of inconvenience.

money issuer, must, in exchange for the goods and services he buys from the
market, place other goods or services into the market. Thus money as a money
instrument is evidence of a purchase that is issued by a purchaser to the
seller. Therefore, money is actually backed by the value surrendered by the
seller and potentially backed by a value in the possession of the next seller.
print bills and mint coins is not to issue or create money. This has no more
monetary significance than if you were to write a cheque and leave it in your
chequebook. Instruments that have not been put into exchange are non-existent
in the World of exchange and money. Money simply does not exist until it has
been successfully accepted in exchange. In theory, two factors are necessary
for money creation. A buyer who issues it, and a seller who accepts it. Since
the seller expects in turn to reissue the money to some other seller, it
will be acknowledged that money springs from mutual interest and co-operation among traders and not from authority.

It is a fallacy to think that a government can issue money. Money can be issued only by a buyer for himself, and he must in turn be a competitive seller to recapture it and thus complete the cycle. This competitive co-operation for goods and services creating value in the market is actually what makes money work. This competitive situation, in which the trader redeems his original monetary issue, through the sale of his own goods and services, assumes that the community’s money will maintain its stability. All enigma as to what causes money to circulate and maintain its power is thus
dissolved by comprehending this natural law of money issue. THIS LAW STATES
THAT THE LEGITIMATE ISSUE OF MONEY IS CONFINED TO PERSONAL ENTERPRISERS IN THE MARKET PLACE, SINCE, THEY ALONE, BY THE LOGIC OF THEIR SITUATION, ARE ABLE ISSUERS OF VALUE. Thus, in essence: money is issued by a purchaser, but it must be issued by a purchaser who can, and is, prepared to issue value; it is a tradesman’s agreement to carry on split barter among themselves.We see that money is the mathematics of value
exchanged based on mutual agreement. The monetary instrument is but the
evidence of the consummated trade. It is a mistake to attribute purchasing
power to the instrument, for it has none. It is merely the conduit through
which purchasing power flows; such purchasing power lying in the commodities or
values exchanged. From this analysis we can deduce that commercial banks do not
“lend” money. They, in fact, permit the “borrower” to issue money. Once given permission, the borrower now has the legal authorization to write cheques to the extent of the loan and tender them in trade. UPON THEIR ACCEPTANCE BY A SELLER, WHO IN FACT PROVIDES VALUE, new money has come into existence. This money remains in circulation until such time as the borrower, through becoming a seller, recaptures money with which to liquidate the loan.From the premise of the natural law of money issue, it
must be accepted, that governments cannot qualify as issuers because they are
not in the real situation of personal enterprisers. They cannot qualify, as
they do not barter. They do not bid for money in the market place. Their taxing
power relieves them entirely from selling. They take by taxing. When they are
admitted to the issue power, their issue cannot be a genuine promise to
deliver value in trade.
It must, of necessity, be counterfeit, regardless
of any statutory laws intended to validate it. From this failure to discriminate between money issued through bank credit by personal enterprisers and by governments, has come an inflationary mixture of true and false money that will eventually threaten social order. Money cannot be issued in perpetuity by man-made laws; it operates by its own natural law. To ignore this law invites uncontrolled inflation.

The destructive force of inflation is not confined to its covert taxing power. This is only its early manifestation. Its later destructiveness lies in its power to amend, and finall, to nullify the contractual relationship upon which the social order depends. The whole
philosophy of freedom is encompassed in the single phrase; POWER TO
While a small distortion of the unit of account impairs contracts
previously written, a consistent inflation actually destroys all existing contracts and prevents the making of new ones.

Adam Smith in his political economy allocated the money power to the state, thus he ante-ceded Marx as a socialist. It is his followers, unconscious socialists, and not those of Marx, who constitute the greatest peril to the order of free exchange. The Smith philosophy is taught in all the schools and colleges. Students become indoctrinated by this ideology
unaware that in its monetary concept it is contrary to the true philosophy of
personal enterprise and individuality. An unnatural monetary system begets
unnatural economic manifestations. How can a free economy work with the monetary system socialised? Rampant inflation makes a mockery of any true accounting for any true contract. When the future businessman discovers that his pride in cash was a delusion and a snare; that his cash reserves, which he meant to freeze have melted and evaporated; that
his balances might have been preserved if they had been cast into materials;
that his bonds and money claims on others have shrunken and that he might have
profited had he known enough to get into debt; that his tax refunds are far
less in power than those paid in; that he must pay capital gain taxes on what
are actually losses; then that businessman will realise that the whole
contemporary inflationary accounting picture is a delusion.

If money is issued under the natural law of issue, unit stability will be in evidence. Under natural law, if exchange plays no tricks on us, we are all really working for ourselves. We will all be interested in stability. In reality we are all buying for ourselves; we are all
selling for ourselves. But just exactly what is it we are buying and selling?
In the final analysis, it is simply human energy, mental and physical. Labour
is the basic, or virgin, commodity. It has no quality of obsolescence, for it
is always associated with the latest, and therefore, the timeliest products. IT
. Others have comprehended this, from the premise that all
value is labour and since money is based on value, they have reached the
correct conclusion that money must be, in actual fact, labour. However, the
fatal error that labour money planners have made is that they set a measure of
labour, such as an hour, as a unit of value. While it is true that labour, both
physical and mental is the only value, and therefore, the sole commodity that
Labour may be so unintelligently applied that it is completely worthless. We
are all labourers, and therefore, fountains of wealth because we all emit human
energy. We must, however, direct that energy to meet the demands of our fellow
labourers. By the measure to which we successfully respond to this demand will
our energy be valued. Money is not a measure of value, it is a method of
stating a value that has already been determined through exchange.

If money is ultimately the mathematics of value set by exchange, what is value? VALUE IS THE RELATIONSHIP OF DESIRE. It is arrived at in the mind by comparing one thing with another. Thus what actually takes place in trading is the determination of values and this mental process is the act of “moneyizing”. It is a mathematical process. As the act of”moneyizing” is psychological, so the act of”monetizing” is material. It should also be noted that both arise out of and do not ante-cede, exchange. Trade produces money; money cannot produce or induce trade.


In conclusion, value, mathematically compared, is money. The purpose of the medium is to achieve split barter and to allow the monetary unit of exchange to be universally accepted for any good or service. The discovery of the power of money as a social mechanism has freed mankind and has been immensely influential in the development of society and civilization. Its importance cannot be over emphasised. However since 1909 the influence of government policy, both national and international, has steadily brought about monetary debasement. Should the level of inflation currently in place be
allowed to continue, sound money will be driven out by bad “fiat”  legal tender. This problem will only be resolved when our leaders come to terms with the realisation that there is a natural law governing the issuance of media of exchange, and if this law continues to be broken by socialist ideology, the very bedrock of the western tradition of freedom and individuality will be broken.


Flight From Inflation

The Monetary Alternative

E.C. Riegel

Edited By

Spencer Heath MacCallum & George Morton

The Heather Foundation

Los Angeles, California.




ESRI has been getting its forecasts wrong for years

This article is the latest instalment from David mc Williams
I would be inclined to agree with him on what he says about the ESRI and their
latest announcements on the economic outlook .Frankly I couldn’t be bothered to even give them the time of the day. With a history like theirs I wonder why they get such attention from the Media !

By David McWilliams

In Irish economic circles, you tend to take much more stick from having been right than having been wrong. Those economists who got it wrong in the boom and believed the hype about the soft landing, such as the ESRI, still manage to grab front-page headlines. In contrast, those who called it right are put under constant scrutiny and are still being dismissed by the establishment as cranks, celebrities or, at best, lucky opportunists.

The “insiders” rally round each other even when they are wrong and the “outsiders” are denigrated. In the economics world, for what it’s worth, the outsiders’ crime — the crime of being right — is particularly dangerous precisely because it exposes the limitations of the insiders. This type of insider/outsider prototype is commonplace in Ireland.

Yesterday, we saw more of this type of behaviour where the establishment insiders carry on with their forecasts despite their appalling records:

Full article at source: http://www.davidmcwilliams.ie/2011/09/07/esri-has-been-getting-its-forecasts-wrong-for-years?utm_source=WebsiteSubscribers&utm_campaign=3431032834-Weekly_Roundup_10_August_2011&utm_medium=email

How the Economic Stimulus Racket Works

Charlie Virgo writes: Have you ever noticed that the failed policies of politicians never really   seem to be brought to light? How is it that despite their obvious shortcomings,   the same policies are implemented time and time again? These interventions   rarely have the promised effects, but they are somehow still deemed a success.   In his book The   Vision of the Anointed, Thomas Sowell explains the process by which   politicians and their supporters are able to either create or take advantage of   crises in order to increase their involvement in society. I thought it would be   worthwhile to review this pattern as it applies to a more recent issue: the   stimulus and bailout packages.

read full article at source: http://www.marketoracle.co.uk/Article29930.html

Does the world need a new Britton Woods meeting ?

This article in PDF form was sent into us to-day .

M521 Connolly BW


Robots Dont Buy Cars

Christopher M. Quigley

B.Sc., M.M.I.I., M.A.






Ourworld lurches from financial crisis to financial crisis yet very few academics,reporters or commentators point out the fatal flaw in current orthodox economic theory which is the central force behind these crises. The flaw relates to the general lack of purchasing power in contemporary society. This weakness in classical economic theory is not new and many scholars have explained the problem however, increasingly, the issue is being conditioned out of people’sconsciousness. The collapse of the international banking system, as a result of the Sub-Prime; “Originate to Distribute” catastrophe, has brought the Achilles heel of Keynesian economics into sharp focus. The elite thus fear that the prospect of a “greater depression” will force change that will eliminate theirposition of control and privilege. Hence the current “spin” emanating from controlled media outlets. The growth of the “tea party movement” is a case in point. Should this political revolution gain in power the possibility of real change in US economic policy will become increasingly probable thus the perceived need to crush it or at the very least gain ownership and control over it. The end objective of this grass root movement is the dismantling of FED interest bearing credit policy in favour of treasury cash, the abolition of the “open door” Chinese trade policy  and the redistribution of true purchasing power to the average American citizen. Fairly remunerated citizens need to replace foreign robots. Robots do not buy cars, raise families, and care for the well being of elderly parents. Americans must stop looking on their nation simply as a mechanical economy and start to see it as a human society.

 Why is purchasing power so important? It is fundamental because without money no exchange can take place. In order to understand what I am talking about let us look at the historical example set by Henry Ford. He completely redefined “classical” economics through the policies undertaken by the Ford Motor Company in the 1920’s. Under “normal” theory it was assumed that a corporation could only maximise profits by increasing price and limiting supply. Ford did the exact opposite because he had a more holistic view of the role of the corporation in society.He doubled the wages of his workers, decreased the price of the Model T and in the process remade the Ford Motor Corporation. (This policy was not inflationary because he knew he could at least double supply through increased efficiencies). The company boomed. How did this happen. It was axiomatic for he understood the importance of money and purchasing power in communities. With Ford’s workers able to make a good living, their financial anxiety ceased and staff turnover dropped by a multiple of five in one year. This dramatically decreased management expense and increased productivity. Workers finally had peace of mind. With the increased disposable income in the Detroit area the general economy boomed. All classes of economic sectors expanded. As a result
more workers, new business owners, company managers, insurance brokers, real estate brokers, bankers, salesmen, craftsmen, delivery men, builders, farmers and retailers could afford Ford cars. Demand for the model T doubled through the increased buying power WHICH HE HAD CREATED. Accordingly profits at the Ford Motor Company dramatically improved as a result of his innovative policy.

 Ford understood economics and he understood the issue of PURCHASING POWER. FOR HIM PURCHASING POWER WAS NOT CREDIT BUT
REDISTRIBUTED DIVIDENDS FROM THE OWNERS TO THE WORKERS. THIS BRILLIANT INSIGHT MADE THE FUTURE FOR THE COMPANY. It built up the economy of Detroit and it helped define America as a country where a factory worker was respected and well paid, not exploited, as had been the case throughout the English industrial revolution. The American dream was Ford’s vision made manifest. It was a dream brought to fruition not through political fantasy but through the laws of accounting, finance, production and marketing.


 “Power and machinery, money and goods, are useful only as they set us free
to live. They are but means to an end. For instance, I do not
the machines which bear my name simply as machines. If that was
there was to it I would do something else. I take them as concrete
of the working out of a theory of business, which I hope is
more than a theory of business—a theory that looks toward
this world a better place in which to live. The fact that the
success of the Ford Motor Company has been most unusual is
important only because it serves to demonstrate, in a way which no one can
fail to understand, that the theory to date is right.

Considered solely in this light I can criticize the prevailing system of industry and the organization of money and society from the standpoint of one who has not been beaten by them. As things are now organized, I could, were I thinking only selfishly, ask for no change. If I merely want money the present system is all right; it gives money in plenty to me. But I am thinking
of service. The present system does not permit of the best
because it encourages every kind of waste—it keeps many men
getting the full return from service. And it is going nowhere. It
is all a matter of better planning and adjustment.”

 Henry Ford My Life and Work

Compare for one moment the circumstances in Detroit in the 1920’s and mainstream America today. The exact opposite is occurring. Meaningful wage levels are being destroyed and thus the required buying power is contracting in a structured and planned manner. This system cannot hold. Society is being hollowed out from the inside. Folks do not understand what is happening due to “dumbed down” educational policies. To replace falling money (wage) levels between goods available for purchase and actual purchase capability the banking elites are “managing” the availability of credit. This credit substitute for real wages is an unstable arrangement because the debt is very expensive and is non-liquidating other than through bankruptcy or lotto wins or death. This is no way to run nations.
It creates constant anxiety and eventual depression among citizens. It is
inherently unstable particularly now that most banks are actually insolvent and
are no longer in the position to provide credit in the form of business loans,
credit card facilities, car loans, overdrafts or home equity draw-downs.

 Thus in essence the “solution” to “the problem” in America and for that matter in Europe, is enlightened redistribution of purchasing power other than through non existent credit. Currently too much power over such redistribution is controlled by banks and associate entities.
This money centralization is stagnating the system and the fact that this
arrangement failed to regulate itself, and caused a credit collapse, has accentuated the speed of failure by multiples. It is time to change. Society must move on. The intellectual framework to effect this change, as demonstrated by Ford, has been known for over 80 years. Its successful implementation today would bring a renaissance to world commerce and societal development. There is no more important function for Academia today other than to dissemination this vital economic truth.

 Armed with this knowledge for how long do we allow the folly of present economic “orthodoxy” to continue? To me this situation is akin to an adult perceiving the behaviour of a wild and immature teenager, wondering when the “penny will drop” and wisdom will prevail. To the elites, who must know the truth, this monopoly credit based boom-bust phenomenon is obviously allowed to continue because they have control. Their ownership motivates them to disregard consequences provided they are protected
through privilege.
However, I believe that the truth is too
obvious to ignore anymore.  The end result of the current repression is the on-going development of the new modality which I call: “Techno-Feudalism”. This “Techno-Feudalism” will bring with it vast disparities in wealth, ownership and opportunity. It will lead to an eventual obliteration of the middle classes in developed nations. It will engineer the slow Fabian demise of effective democratic institutions in the West. Untamed it will break traditional social cohesion and lead to mass unrest,criminality and despair. But the future does not have to be so bleak. The money solution is so obvious it is “madness” not to sort it out. The truth must beallowed to break free.


“The organism has a right in natural law to draw sustenance from its environment. We cannot with impunity abstract humanity from the natural world. ….Unfortunately, the present financial system creates an ever greater deficiency of effective and unattached purchasing power giving the illusion, through a distorted financial lens, of actual or physical scarcity in the midst of actual and potential abundance…..

 We are trying to pass from one type of civilization into another in which the possibilities are such that we cannot begin to imagine. That transition, I believe, will best be facilitated in an environment which provides maximum freedom (immanent sovereignty) for the individual in the context of absolute economic security.”

Wallace Klinck


In the 1930’s the engineer and self-taught economist Major Clifford Douglas claimed that society was intellectually hypnotized and that only a drastic de-hypnotization and re-education could save it. Douglas believed in people. He felt that individuals had far more goodness and potential than society was allowing them for. He reckoned that if common folk were given enough freedom and leadership they could move society and civilization into a new golden age. An age of extended liberty, discovery, art and culture.  The alternative he felt would be booms, busts, over-consumption, under-consumption, excesses,depressions and wars. Eighty years later this is exactly what the world has experienced and is continuing to experience. However, the period between each stage is narrowing and the level of debt, instability and inequality are exploding beyond comprehension. To followers of Douglas this situation is not happening by accident; it is happening inevitably because of conceptual flaws in financial and fiscal policy.

 The monetary and economic policies of such people as Henry Ford, Clifford Douglas, E.C. Riegel and E. F. Schumpeter et al are heartfelt attempts to bring about “steady state” change to historical economic orthodoxy. It is incumbent on all interested parties who desire to solve this problem of problems to become educated and aware of the available solutions and to actively participate. Not to do so will allow the current “greater depression” to expand and gain a greater grip on economic activity. History shows that such a development will eventually lead to war as sure as night follows day. Thus the choice is clear;do we want war or peace? If you opt for peace, as I do, we must strive to free contemporary economic policy from its death waltz with outmoded Keynesianism.Economic theory must move on, sanity demands it.


“Flight from Inflation”


The Heather Foundation,

Los Angeles.

 “My Life and Work”

Henry Ford

In Collaboration with

Samuel Crowther

 “Small Is Beautiful”

E. F. Schumacher

 “Social Credit”

Major Clifford Hugh Douglas

Mondo Politico.Com

Mary O’Dea and the IMF


The Story.ie

I couldn’t let this one pass without comment either. Mary ‘shop around’ O’Dea has landed a new job at the IMF, as the Irish Independent reported earlier this month.
O’Dea, currently director general of financial operations at the Regulator, will become the IMF’s alternative executive director this July.
“I’m really looking forward to what I know will be a challenging role, especially at a time when Ireland is itself in an IMF/EU programme,” O’Dea told the Sunday Independent. This paper asked the Regulator two months ago if O’Dea would be taking up a new job in the IMF.
I suppose you could with some jest say that she is getting out of dodge when the going is good. Rumour has it there were no promotion prospects internally at the now expanding Central Bank, so she was bumped off to Washington. Apparently the job is a rather nice 3 years in Washington DC tax-free with expatriate benefits (including private schools).
Oddly though she goes from sitting in our Central Bank/Financial Regulator up to and during IMF intervention, to now sitting on the other side of the table to perhaps help scrutinise our adherence to an IMF deal.
(H/T P O Neill)


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