What is truth?

Posts tagged ‘Social Sciences’


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


Namawinelake closure


I do not know the reasons behind the Namawinelake decision to stop operations, but the announcement that the blog will cease publishing new material starting from tomorrow was a shocker for me.
I can attest from my own & others’ experiences that those of us who run anything independent of the officialdom mouthpieces (regardless of political / ideological orientation or even the lack of one) have near-zero support (moral or citations- and links-wise) from our internal (not to be confused with international) media and all businesses.
Those in our society, including the traditional media, who only benefit from the free analysis and the climate of openness and debate the independent analysts help to create prefer to endlessly endorse and support, including via advertising revenues, cross-links, citations and readership, those who offer no alternative but…….

full article at source:http://trueeconomics.blogspot.ie/

“fake economist unmasked”.

The story in the Guardian is of a Portuguese chap who convinced everybody, possibly including himself, that he had taught economics in the USA and even worked in the world bank. He debated issues on the economy regularly on Portuguese media, and became a celebrity and celebrated for his easy style and making simple of the complex.

There is of course much glee being rubbed on hands at this – many people consider the whole activity of economics to be applied charlatasim. But it raises a question on the nature of the business.

There is to me no such thing as the profession of an economist. A profession, I suggest, is on that has rules and regulations, standards for entry and exit, a recognized way of doing things. Accounting is one ; so also is nursing, or taxidermy. Economics has none of these. The deficiencies in modern (macro) economics have been well publicized over the last half decade : a read of the blogs of Krugman, Simon Wren Lewis, Mark Thoma, or a host more will show both an evisceration of the abstruseness of much of modern macro modeling and a deep searching of the soul by practitioners of a craft………………………..

full article at source: http://www.irishbusinessblog.com/2013/01/30/pretending-to-be-an-economist-not-really-such-a-bad-thing/


The irrationality of it all


By David Mc Williams

Over the past few days, I have received all sorts of economic forecasts of 2013 penned by economists in large financial outfits who are confidently telling me what is going to happen next year. Most of these guys were the same people who didn’t foresee this crisis, yet few have lost their jobs and here they are, without the slightest hint of doubt, outlining what is likely to happen in 2013.

Of all the characters we should fear, the overconfident economic forecaster is surely one of them. When the Queen of England asked why none of these professionals warned of the credit crunch, she was only articulating what many people must have thought, which is “if you guys are so clever, why didn’t you see this crisis coming – and if you didn’t see it coming, why should I listen to you now”?

The failure of economics to predict human behaviour is a significant charge that modern economists have not properly answered and the failure to answer this accusation adequately has undermined economics as a whole.

In the final column of the year, we are going to take a quick look at the state of the economics game and ask whether the fundamental laws of traditional economics bear any relation to reality or offer any insight into how people actually behave……………………..

Full article at souyrce:http://www.davidmcwilliams.ie/2012/12/31/the-irrationality-of-it-all?utm_source=Website+Subscribers&utm_campaign=e3ac4be19f-22112012&utm_medium=email

Why Government could learn a lot from the world of business

By David Mc Williams

One of the many great things about teaching an economics course is that you get as many ideas from your students as you give them. The other night, one of my students, who is returning to economics out of general interest but who has a wealth of experience in turning companies around, explained what he thought the budget strategy must be in the context of turning a company around from bankruptcy.

He said that the strategy must be one where the Government is getting its house of cards sorted in order to be able to default, not in order to be able to pay its huge debts. …..

full article at source: http://www.davidmcwilliams.ie/2012/12/06/why-government-could-learn-a-lot-from-the-world-of-business?utm_source=Website+Subscribers&utm_campaign=d2fdc5d91e-22112012&utm_medium=email

The Tragedy of the Euro! What about Germany?

By: GoldSilverWorlds

Brecht Arnaert writes: 2012 has been a year of great turmoil for the euro. But our economy is not the only thing that is in crisis. Our economic theory is too, and even more so: for decades macro-economic policy has been conducted within a Keynesian framework, and while no Keynesian economist has predicted this crisis, or even is able to explain it’s causes, we are still listening to them today to get out of the mess they brought us into. I would say that this is a problem of legitimacy. I am telling this not only as an economist. I am a defender of liberty too. What is happening in Europe right now should not only worry economists, but every freedom-loving citizen. As we speak, measures are being taken to take away our liberties in a way that Hayek described so well in his “Road to serfdom”: each government intervention requires more government intervention, until no freedom is left anymore. Step by step our property rights are being eroded, and, not too far from here, in Brussels, a giant Moloch called the European Commission is centralizing powers with a speed that would have been unimaginable before the Treaty of Lisbon.

Let us start with some theory about how value is created, what the origins of money are, and how the euro is the right answer to the wrong question.


Economics is the study of value creation. It does not consider itself with the question what values men should pursue, nor how value should be shared in a community. These are questions for respectively moral and political scientists. Economists take the valuations of individuals as the given and goes from there. A value is something one wants to gain or keep, and economics studies the means people use to achieve these ends. About the desirability of those ends, it has nothing to say.

Mainstream economists largely ignore this definition of economics, and even turn it around. They regard their valuations as the thing to be achieved, and the valuations of individuals as the means to it. Instead of analyzing how individuals create value, they devise policies to make them conform to their one chief value: stability. Macro-economic policy has only one purpose: an economy “in equilibrium”. The use of government intervention is their way to push individual valuations towards this one pre-set value.

It is tempting to judge these policies form a moral angle, but that is why this lecture has two parts. As an economist, the only question I have to answer is: “What policy creates the most value?” If it would turn out that mainstream economics is right, then I have no story. But if it can be proven that macro-economic policy actually destroys value, then the best macro-economic policy might be that we have none. This is actually the thesis I will be defending tonight.

Full article at source here:  http://www.marketoracle.co.uk/Article37484.html

The Poetry Of Life

By Friedrich von Schiller

“Who would himself with shadows entertain, Or gild his life with lights that shine in vain, Or nurse false hopes that do but cheat the true?– Though with my dream my heaven should be resigned– Though the free-pinioned soul that once could dwell In the large empire of the possible, This workday life with iron chains may bind, Yet thus the mastery o’er ourselves we find, And solemn duty to our acts decreed, Meets us thus tutored in the hour of need, With a more sober and submissive mind! How front necessity–yet bid thy youth Shun the mild rule of life’s calm sovereign, truth.”

So speakest thou, friend, how stronger far than I; As from experience–that sure port serene– Thou lookest;–and straight, a coldness wraps the sky, The summer glory withers from the scene, Scared by the solemn spell; behold them fly, The godlike images that seemed so fair! Silent the playful Muse–the rosy hours Halt in their dance; and the May-breathing flowers Fall from the sister-graces’ waving hair. Sweet-mouthed Apollo breaks his golden lyre, Hermes, the wand with many a marvel rife;– The veil, rose-woven, by the young desire With dreams, drops from the hueless cheeks of life. The world seems what it is–a grave! and love Casts down the bondage wound his eyes above, And sees!–He sees but images of clay Where he dreamed gods; and sighs–and glides away. The youngness of the beautiful grows old, And on thy lips the bride’s sweet kiss seems cold; And in the crowd of joys–upon thy throne Thou sittest in state, and hardenest into stone.

Social Credit

By Christopher M. Quigley B.Sc., M.M.I.I. Grad., M.A.
“Banking and credit are too important a business for citizens and politicians to be ignorant of. Upon its fair and equitable administration rests the very existence and future of our society”.
Every society has its orthodoxy. But there comes a time when the “accepted  view” no longer functions. When this occurs it is time for change. The  movement of stars told Galileo that the earth centred Universe was  wrong. The relative inner stability of two moving trains told Einstein  that Newton and Euclid were wrong. The current Sub-Prime credit crisis  is an indication that the orthodox concept of banking and credit is  wrong.
This is not the first time that the failings of the  accepted “credit concept” were identified as being erroneous in an  increasingly technologically efficient world. The great depression of  1929 also gave the same signal. However instead of dealing with the  cause only the symptoms were addressed. Accordingly, another world war  ensued and through “sticking plaster” policy modifications we bungled on for another 80 years. Now, once again, the dormant “error” has become  virulent and threatens the whole.

The disease within the economic body  was diagnosed successfully in the early 1900’s and a solution was  prescribed but ignored. The same remedy will work today but its  successful application requires a “Copernican” change in economic  conceptional modalities. The world was not ready then. Is it ready now?  The cure is called: “Social Credit”.
Due to developments in  technology and technique the age old problems of production and scarcity have been all but solved, the issue now is one of distribution. Money  creates effective demand and orthodox banking and accounting rules makes money scarce. This state of affairs if allowed to continue will result  in:
1. Surplus production due to efficiencies
2. Consequent unemployment and under-employment resulting in effective demand destruction
3. Poverty due to lack of purchasing power
4. Redundant industrial machinery
5. Consequent cut-throat competition
6. Disappearance of industrial profits
7. Consequent business bankruptcy and depression
8. Aggressive competition for foreign markets
9. Consequent international friction and war
In order to prevent the above constantly recurring, as in 1929 and now  with the sub-prime crisis, it is necessary to change our orthodox view  of economics. WE MUST MOVE FROM AN OUT-DATED MINDSET. This does not  require a revolution in society it simply requires a revolution in our  consciousness. However the elite who control the ownership of the  “orthodox” credit myth will not allow acceptance of this alternative  knowledge because to do so will weaken their system of management and  domination. However truth is an amazing thing. Slowly but surely, like a seed whose hibernation is over, the practicality and human goodness of  the concept of Social Credit is germinating. But it needs aware and  dedicated followers to nurture this growth.

For the current economic crisis to be finally resolved the realisation must sink in that BANKING IS NOT SIMPLY AN AVERAGE BUSINESS LIKE ANY OTHER.  On the contrary, upon its fair and equitable administration rests the  very existence and future of our society. Banking and credit are too  important a “business”  for citizens and politicians to be ignorant of.  To deal with this matter we must, to use the words of President Obama:  “up our game” or perish.
The word credit comes from the Latin  word “CREDERE”, meaning “TO BELIEVE”. The essential quality of money,  therefore, is the belief that one can get what one wants when one  possesses it; THUS MONEY IS A SOCIAL CONTRACT BASED ON TRUST AND MUTUAL  BENEFIT. Since credit is a function of money it follows, axiomatically,  that CREDIT IS A SOCIAL CONTRACT ALSO. A society cannot allow a  particular grouping to have a monopoly on the functioning of this social contract because ultimately this group could end up monopolising all  contracts. If you own the contracts you will end up owning society.

The central problem which Social Credit addresses is the negative  consequences resulting from the increasing use of capital in manufacture and distribution. This drive towards capital intensification brings  efficiency but it decreases the requirement for labour. With the loss,  or through the down-grading, of “jobs”, the trend is for higher  unemployment and/or under-employment. With under-employment there is  less purchasing power in the economy thus the true potential capacity of modernity cannot be attained because there is no effective demand,  since desire without money is meaningless in our system.
Social  Credit strives to solve this spiral of lower employment, lower wages,  recession and depression by increasing effective demand in the system by generating societal purchasing power. Purchasing capability is  increased through a social dividend and the adjustment of prices. It  also proposes that the ownership of credit reside with the society  rather than with a monopoly group.

Thus excess reserves owned by credit  institutions, over a certain minimum to allow their sustained and stable operation, are systematically issued to society. Social Credit believes in banking but does not accept monopoly ownership of credit and legal  tender. The objective of such policies are as follows:
1. Money is no longer a commodity controlled by banks
2. Credit is no longer a social contract controlled by banks
3. Boom and bust credit cycles are negated
4. Increased stable purchasing power allows for effective distribution of goods and services. This stability allows better long term decisions to be made by entrepreneurs about the  economy.
5. Increased demand for goods and services boosts an economy centred on smaller community  based businesses.
6. Corporatism diminishes
7. Unemployment and under-employment are seen as opportunities for freedom to develop since  citizens are able to function in the economic system  through receipt of social dividends. Due to a  change in the “zeitgeist” time is no longer equated to work in order to obtain legal tender.
8. Speculation diminishes due to the non availability of “commodity”  credit and a real  economy, rather than a gambling economy, flourishes.
9. Government down-sizes due to the diminished availability of monetised debt.
Many folk have attacked these objectives as idealist or socialist. They are  wrong. In fairness these objectives are based more on community than the commune. But that is the point. Social Credit strives to reaffirm the  supremacy of human association rather than abstract institutionalism.   Capitalism, under our current banking arrangements, and communism  /socialism are all “Cesarist” theories of society; they end in monopoly  ownership of everything. This monopoly results in the “state” or “core  political group” being master of the individual. As a result community  dies and corporatism thrives. The philosophy of Social Credit is the  exact opposite. It believes in the individual and it aspires to provide  the individual with as much freedom as possible. It acknowledges that  the STATE SHOULD EXIST TO SERVE THE INDIVIDUAL ; NOT THE OTHER WAY  ROUND.  Social Credit therefore rejects the dialectic materialism of  capitalism/communism/socialism; and accepts grace.

As this  sub-prime crises festers and invades the social, economic and political  body I hope that more and more like minded people will become focused,  educated and aware. There is no more important goal in life than  actively participating in the growth and development of one’s spirit,  one’s family, one’s community and one’s nation.  “Banking and credit are too important a business for citizens and politicians to be ignorant  of. To deal with this matter we must, to repeat, up our game or perish”.
“Economic Democracy” Major C. H. Douglas Bloomfield books
“Aladdin’s Lamp: The Wealth of the American People” Gorham Munson Creative Age Press: New York
New Zealand Government’s Monetary Committee Notes of Evidence and Correspondence Wellington,  24th. February 1934

Illusion of Greek bailout is Europe’s dirty little secret

European Union

European Union (Photo credit: erjkprunczyk)

By David Mc Williams

Sigmund Freud once noted that: “Illusions commend themselves to us because they save us pain and allow us to enjoy pleasure instead. We must therefore accept it without complaint when they sometimes collide with a bit of reality against which they are dashed to pieces.”Europe and the EU are soon to go through one of those ‘collisions with reality’. The reality of the latest deal in Greece is that it drives the Greeks deeper into the mire and as the economy there contracts yet more, the wheels of this deal will fall off.

The latest illusion that the EU has now come up with is that ’120′ is the new ’60′. A debt/GDP ratio of 120pc is now regarded as sustainable. A few weeks ago during agreement of the fiscal compact, a debt ratio of 60pc was regarded as the sustainable target. Now we know — well, for Greece at least — 120pc is the new 60pc.

full article at source: ttp://www.davidmcwilliams.ie/2012/02/22/illusion-of-greek-bailout-is-europes-dirty-little-secret


David Mc Williams is spot on with this one !

Just one word comes to my  mind for this latest bailout for Greece, that is “Delusion”.

Yes my friends we are again asked to discard real maths for a make belief delusionary state .This latest bailout is nothing more than a bailout again for the Banks, another attempt to con the citizens of Europe that all is ok! Everything is under control. This latest bailout is an affront to all independent thinking EU citizens. This is just the latest act in the emperor has no clothes.

Placing more austerity on an economy that is in tatters is shear madness!

Greece is Bankrupt and this is a default only the financial gangsters running Europe will not face reality they are hell bent on bringing the rest of Europe down with them!





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.




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