The dollar says inflation is coming as its value diminishes with the passing months. US Treasuries say deflation is our main concern as they continue to garner historically low interest rates. How can these markets broadcast polar opposite views? It’s simple: The federal reserve currently controls both markets. The federal reserve, a private bank, which could be argued is actually a private banking cartel, is printing dollars by the hundreds of billions (over two trillion in the last 18 months last time I checked) to buy US Treasuries, support insolvent corporations, and prop up asset prices like stocks and bonds. Why? Because that is the only way for our government to support its current policies of runaway spending on stimulus, bailouts, the war on terror, and to pay the interest on its rising debt. It also serves to devalue the dollar while artificially keeping interest rates low.
Essentially, the US government is borrowing money from the federal reserve, who prints the money and charges interest, which the taxpayer will be held accountable for, and also receives interest from the government for buying the T-bills, which the U.S. taxpayer will be held accountable for. Everyone with me so far?
These are but a couple of examples of how current monetary policy serves to transfer wealth from the public to private interests. Yet, you may argue that the auctioning of Treasury Bills supports our government’s ability to provide infrastructure as a foundation for the economy to function. True, but due to the inability of our government to work within its means (our current budget deficit is well over one trillion dollars for the year...and under the Bush administration we increased our national debt by over six trillion dollars), it must borrow massive amounts of money in order to function. The problem is that there are not enough borrowers to feed our insatiable need to spend. So, instead of tightening the purse strings, and allowing interest rates to rise until borrowers would be willing to take on the risk of owning U.S. Treasuries which, by the way, would contract the economy; the federal reserve and US treasury work together (again the federal reserve is not a government entity, but a private bank!!) and come up with a plan. Let’s print the money we need to buy our own debt, and also funnel money into our banks who can then buy more treasuries, as well as the stocks and bonds of the banks, and retail, and real estate companies. This way, interest rates will stay low, and stocks will go up, and it will look like everything is getting better. Meanwhile, these same corporations we're supporting who own the media, can keep pumping the American public with the message that we are recovering and everything is going to be fine. We’ve Avoided a Disaster, Hurray!
WAKE UP AMERIKA!!!
The US Government is not a government by the people for the people. It is an entity that is controlled by and supporting the interests of private corporations. The US government is currently a government of the corporation for the corporation. And as such it is printing money, which we and our kids, and our grandkids and their grandkids will pay interest on. That is if the U.S. doesn’t go bankrupt first, in which case we will be sending our kids off to wars to fight for who gets a slice of the American pie. Personally, I’d rather not go there.
Well, what can we do about that?
As far as I can tell, our representatives are still elected officials who fear losing power by being voted out of office.
1: Make noise!! Barrage your representatives in the senate and congress with phone calls, emails and letters to AUDIT THE FED!!! See the column to the right for contact information and a form letter to send to your representatives. Do it now. Do it tomorrow. Do it the next day, and the next and so on and so on. Tell your friends and family. Tell them to tell their friends. Just ask yourself, Do I value freedom? Does my society feel free? Do I believe that our freedoms are slipping away? If so, lose the complacency, and take action.
2: Transfer your money from large financial center banks. Put your money in local credit unions. Pay off credit card balances in full each month or better yet use a debit card from your local credit union. This strips power from the large banks, and redistributes it to local entities.
3: Buy from small businesses. Stop feeding money to Wallmart, Target, Costco, Best Buy etc…. and support local businesses, farmers, and food coops. Use their accessibility to talk to the owners/managers about where the business does their banking, and encourage them to also support local businesses by depositing their money at credit unions/local banks. Get viral with this shit, or my belief is that our children will be inheriting a much different set of rules than those that we have been fortunate enough to take for granted.
Fubsy
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This sent from my fiend Shane via email.
ReplyDeleteHey Mitch,
I read your blog post. I agree about this being a "corporatocracy". It's never really been a democracy and it may be that a true democracy is unattainable in groups over 500 people (or 5).
As for me, I'm thinking of how the transition from centralized currencies to an inclusive resource based economy (no currency at all) can be achieved. Debt is just a red herring that the money and political magicians wave in front of people in order to manipulate and control them. "Be a good debt slave or else!" I'm not going down that road. It's delusional. There is no debt to a bank or treasury or anyone else except those who have been deluded into believing such tripe. The debt, the impact, is to the earth and to all of the human family.
The true road, the physical bank, is this planets resources and human effort. Complete inclusion, love and relationships with the earth and all of humanity is the future and I believe is the core of our present, although at present these core elements are fragmented. This is the evolutionary edge where the courageous fear to tread yet tread we must. We've been down the fragmented road, the road of exclusion, we know where that road leads-----classism, racism, sexism, us vs them, war, externalized costs as if there is an external and internal. It's a delusional way to speak, think and base a human society upon. It's intellectually, emotionally and spiritually retarded due to the narrow mindedness of singular and dualistic based thought and religion.
How can I say this? Because religion gave monarchies their "God" based authority. Monarchies brutally accrued false wealth, gold, silver, etc. Monarchies created centralized economies via coins and banks which morphed into pseudo democracies that retained the monarchical control of land, resources and centralized banking. Fragmentation of the land our earthly body, reducing it to "property" or "commodity" is the province of adolescent boys and girls playing a board game with catastrophic results.
Game over! Time to get real, get together and love each other, this earth and this universe. Quit reducing our magnificent reality into delusional mental compartments. It doesn't work. What's the definition of insanity? Doing the same thing and expecting different results. Time to do things differently. Time for the age of inclusion, integration and recognition that we are all already connected. Let's get really good at being connected which means caring about and for everything.
Every human is related. We're family. Stop buying and selling shit to each other. Sharing is our true reality, thus it behooves us to share well.
'nough said.
Be well,
Your Brother,
Shane