US Threatens China With Open Warfare

ΩΩAs the US merrily heads straight towards WWIII with China, the US peace movement goes entirely off the rails.  After a huge meeting here in Albany, they decided the most important immediate action they should take is to…attack the citizens of Arizona?  Talk about insane!  Anyway, the US has deliberately chosen to up the ante with China hoping we can use our military to muscle our chief credit provider.


ΩΩThe smaller, weaker nations of Asia have discovered the US is more than willing to bankroll and provide our excessive military power on behalf of their own political agendas.  So, since we offer them free access to our very expensive military machine, they, like Eastern Europe, can use this power to provoke petty fights with a major nuclear power.


ΩΩOh, how very clever we are!  The problem is, we can’t afford to be clever.  Our military exists mainly and perhaps only because China buys our massive government debts.  Here is the latest tit for tats about the South China Sea:  China Says Its South Sea Claims Are ‘Indisputable’ (Update2) –

China declared its “indisputable sovereignty” over the South China Sea and held naval drills in the waters, pushing back against a U.S. role in resolving disputes in one of the world’s busiest shipping lanes.


“China has indisputable sovereignty of the South Sea and China has sufficient historical and legal backing” to underpin its claims, Geng Yansheng, a Ministry of Defense spokesman, told reporters at a military compound outside Beijing today. It opposes efforts to “internationalize” the issue and will resolve differences through “friendly negotiation,” he said.


U.S. Secretary of State Hillary Clinton last week called the sovereignty issue “a leading diplomatic priority.” Chinese Foreign Minister Yang Jiechi subsequently called her comments “virtually an attack on China” and said U.S. involvement “can only make matters worse and more difficult to solve.”….“China opposes any planes or warships that engage in activities that will compromise China’s security either in the Yellow Sea or other seas near China,” Geng said today.


ΩΩYikes.  The antiwar movement in America, a creature that has been thoroughly run over by maniacs who want desperately to believe there is no such thing as a border much less, sovereign spheres of influence, is totally inattentive to these alarming developments brewing in Asia.  Unable to even concentrate on simple and obvious things like demanding a withdrawal of US troops in Central Asian countries where we are actively killing civilians, the peace movement is much more activated over the issue of anyone enforcing any boundaries or controls on population flows of aliens.


ΩΩHere is the alarming program that came out of the recent major meeting of ‘peace activists’ (sic) in Albany last week: Peace Movement Adopts New Comprehensive Strategy | War Is A Crime .org

  • July 25 – March in Albany in Support of Muslims Targeted by Preemptive Prosecution called by the Muslim Solidarity Committee and Project Salam.
  • July 29 & 30 Boycott Arizona Actions across the country as racist Arizona law SB 1070 goes into effect, including the mass march July 30 in NYC as the Arizona Diamondbacks play the Mets.
  • All the other mass actions listed above leading up to the bi-coastal actions on April 9, 2011.


ΩΩYup, attack the US citizens of Arizona!  Way to go!  Why not attack the entire South?  Or say, ‘boycott all Red states’!  This is what caused me great despair in the sixties: all our attempts at creating a major organization against a specific war was always, always derailed by deranged people demanding other things first.  Instead of building an organization that would deal with whatever social issues people had, they all wanted to piggy-back ride on public disapproval of a specific war.


ΩΩNow, being against imperialist expansion CAN be a good thing but only if it is first coupled with serious examination of what is an empire, what goes wrong with empires and how to deal with the powers and the hazards of empires.  Then, we should specifically target these, top one of which is, bringing troops home so they can protect the home base, not overextending power or letting foreigners use our power for their own ends!


ΩΩInstead of understanding the value of sovereignty, the power of citizenship and the need to protect America, the left has once again shown that it is more interested in destroying our sovereignty, opening our nation up to invasions from the outside and coddling criminals.  These things lead to very serious backlashes which are now welling up.  The 70% public support for the Arizona laws is just one very dangerous example of how out of step with the rest of the citizens the left has become.


ΩΩMeanwhile, the Democrats are even more confrontational with China and Russia than the GOP was under Bush.  This is pure insanity.  It is as if the left has forgotten that nuclear warfare is our chief fearful thing that we must work hard to avoid.  As I often warned people in the past, social justice is meaningless if we are all killed or our civilization is totally destroyed in WWIII.  We must focus on this above all other issues.  Period.  We have NO CHOICE.


U.S. takes a tougher tone with China

To this end, the Obama administration has also intensified its diplomacy and outreach to other Asian and Oceanic nations, ending a 12-year ban on ties with Indonesia’s special forces and strengthening its alliances from Tokyo and Seoul to Canberra, Australia.


The strategy has won rare acclaim in Washington among the generally fractious community of China watchers. James Mulvenon, director of Defense Group Inc.’s Center for Intelligence Research and Analysis, called it “a masterful piece of diplomacy” in dealing with China, which, he said, “continues to be this paradoxical combination of bluster, swagger and intense insecurity and caution.”…


….”After the meeting, about a dozen Asian delegates expressed their congratulations to the Chinese side,” the statement said, despite what many in the meeting thought were clear indications that most of the participants supported the U.S. view….


To this day, US diplomates and officials seem utterly unable to penetrate the minds of Asians.  After gleefully using the US as a club in a struggle over territorial rights with China, these same people run off to China to renew relations because they understand that the US is an OUTSIDER and China is here to stay.


The ‘clear indications’ shown by Vietnam were all about cynical use of US power yet again, for Vietnamese ends.  Um, we went down this road in the past!  The US should be very leery of playing footsie in this way with Vietnam!  Vietnam has a long record of defiance towards China intermixed with kow towing to China.  We shouldn’t delude ourselves into thinking we control things there.


…Finally, the Obama administration continues to push China over Iran. The United States won Beijing’s support for enhanced U.N. sanctions on Iran in June after Tehran’s refusal to halt its program to enrich uranium. As part of the deal, the sanctions were kept relatively weak, and China, which has substantial investments in Iran’s energy sector and is Iran’s third-largest oil customer, was exempted from many of them.


But now U.S. officials are concerned that as Western countries enact additional sanctions on Iran — the United States, Canada and the European Union have all slapped on more in recent weeks — Chinese state-owned energy firms will step in as Western and Japanese investments dry up, negating any possible effect of the measures.  “We’re not done on Iran,” said the senior administration official. “We are looking for maximum Chinese restraint.”


ΩΩJust as the US is falling into a very obvious trap, being the cat’s paw for a host of smaller, weaker sovereign nations negotiating business with China, we have fallen into a trap with Israel using us to increase their own power over the Middle East and enrich their own nation at our expense.  This leads to a totally schizoid foreign policy situation being exploited by China.  The US wants China to cooperate with us in destroying Iran.  China plays along because they, like most of the world, run a trade surplus with the US, but then the US slaps China in the face.


ΩΩThis is deliberate.  The US leaders think that this will increase US power.  The US hopes to control Iran’s oil again.  Certainly, the idea that British Petroleum could hike back in and take over should give all Americans a pause here.  Ahem.  The BP scandal of the fake ‘dying’ terrorist bomber from Libya was supposed to be investigated by Congress but Britain and BP oil stonewalled these hearings and so the matter was dropped.


ΩΩThat is, it is OK for BP to overlook international terrorism if this means Britain can resume oil production work in Libya due to the North Sea oil fields collapsing in production but it is not OK for China to have relations with Iran?  HAHAHA.  The Chinese are in the process of examining their position in the world due to holding vast amounts of US debt and US dollars (around $4-5 trillion) and they know that sovereign power matters more than trade positions and if the US is going to form a military alliance to surround China, maybe it is time for WWIII.


ΩΩRemember: all world wars happen due to natural dynamics.  That is, people don’t suddenly decide, ‘Hey, time for a world war!’.  Instead, things insidiously slide towards world wars.  The stage is set, the tensions rise and then the wars ignite.  Each one had many slow burns going simultaneously before the sudden direct confrontations.  For example, Germany, France and Britain were all competing in hotter and hotter ways in trade and colonization efforts across the planet when suddenly they turned and fought each other directly on their home fronts.


ΩΩIn the past, with WWI and WWII, there was a six month grace period between girding for war and the resulting invasions of actual armies crossing borders (yes, borders DO matter a lot!).  There has been a great change since then.  No longer do nations have to invade each other in order to destroy each other.  Now, we can drop bombs until the civilization vanishes.  During WWII, we did this to Germany and Japan and it took lots of work and time, it took at least a year or more of ceaseless bombing of cities to reduce Germany and Japan until they surrendered.


ΩΩIndeed, it was the birth of the nuclear war era that ended WWII suddenly.  Japan was facing total annihilation.  Finally, the sleeping beauty Emperor woke up and surrendered.  Well, WWIII won’t give us the leisure to amble into war.  If we start any war with a major nuclear power, we can expect to be destroyed.  Even if we ‘win’.  We will be destroyed.


ΩΩI spend a great deal of thought on this.  We are talking probabilities here.  If China and Russia manage to hit just six major US cities, they will be definitely DC, NYC.  Hawaii will become Bikini Island (ie, everything wiped out) and all our major ports where our navy resides will cease to exist.  Europe will no longer exist, either.  This stark reality should frighten us off of using nuclear weapons.  The chief thing here is, we cannot EVER have ANY direct confrontation AT ALL with ANY major nuclear power.


ΩΩThis reality is why we never went to war with Russia.  Every confrontation led to us backing down while the Soviets also would back down.  But US arrogance over our vast military machine’s power means we imagine we can chance a nuclear confrontation with someone and get away scot free.  This is delusional.  But then, this is the greatest problem with our State Department and Pentagon working with Congress via AIPAC, to twist our national needs to suit an alien power bent on world domination.


ΩΩSo, just as the Vietnamese will cheerfully use US power for Vietnamese ends, so will Israel who really does control our government use our power for Jewish expansionist ends.  This week, Netanyahu openly told the slave working the front door of the White House, he was going to continue expanding Jews-only housing in the West Bank and Obama said, ‘Yaz, mastah!’  Incidentally, more loss of US face, big time.


Maoists in India Blow Up Pipelines Putting $78 Billion at Risk –

“The Maoists are gaining ground, and India’s resource crunch will only get deeper,” says Suhas Chakma, director of the New Delhi-based Asian Centre for Human Rights. “The entire economic development of the country is being sucked into the conflict.”


ΩΩThis conflict is overlooked in the US.  But not in Asia.  India hasn’t had a proper revolution unlike say, Japan or China, so it is overdue.  Like the Taliban, the Indian radicals know how to fight.  The Indian government is full of corruption as well as caste divisions.  The internal stresses are building rapidly as India gets more wealth for the upper tiers of society which happen to be very caste-conscious.


ΩΩAussie Housing Bubble Gets Popped With Chinese Credit Crash « Great Speculations – Clinton is gay because she got to ‘strengthen’ our alliances with all of Asia to fight off Chinese power.  Well, China’s credit didn’t crash, it was crushed by the communist government which rightfully feared a major credit bubble would destroy China the way credit bubbles are destroying much of the West and Japan!  The flood of funny money flowing to Australia will now probably dry up unless the government there takes moves to renew the bubble and have housing climb higher and higher again.


ΩΩThe entanglements of modern free trade floating fiat currency finance means that a butterfly waving its wings in Shanghai can create a hurricane in New Orleans.  Meanwhile, in the US, the rightwing thinks the status quo is OK and thus, has little problem with free trade but has a bigger problem with the floating fiat currency aspect while the left has a big problem with free trade but imagines that making a currency that floats like a balloon is OK so we get yanked between both forces to no avail.


ΩΩThat is, the concept of protectionism is alien to both the right and the left right now.  The idea that we must protect our citizenship, our sovereignty, our borders, our business, our industrial base, our finances, is chopped up instead of viewed as one thing in total.  We want to pick and choose depending on whim rather than have a solid belief system that includes everything.  One thing that really bothers me is the business about CO2 pollution: we cannot save the entire planet, we can only fix things we control at home and we control this entirely and we can’t import endless oil and such so we have to turn and face the fact that we need to reduce our imports and taxing imported energy is the only way out of this for us.


ΩΩTrading our pollution with distant nations is silly.  We have to take responsibility for our own pollution here at home.  We can’t export our pollution this way.  So far, we exported our industries and thus, cleaned up America but then reimporting the goods we used to make is bankrupting us.  This must stop, too.


Dean Baker: Blacking Out on the Economy

Sunday afternoon a storm hit Washington. It knocked out the power not only in my house, approximately three miles from the White House, but also in large chunks of the city and suburbs. Fifteen hours later we still don’t have power. Since the temperatures are predicted to get into the 90s today, we can expect that people will die. Sick and elderly people who cannot get into an air-conditioned facility will have great difficulty surviving in such heat..

.This should make everyone very angry. There is no excuse for the nation’s capital not to have sufficient spare capacity and repair crews to ensure that prolonged blackouts do not occur in the middle of a summer heat wave.


Sigh.  For much of my long life, I have championed having solar panels on every roof of every house in the US, especially in the south.  When the power goes off in the main grid, each home will still have power during the hot day to keep cool.  Reliance on a grid for everything is stupid.  Here in the Northeast, I know many people who have automatic generators that come on during storms since we lose electricity in winter during ice storms.


Demanding a government provide instant service is silly.  We have to first fix things so we are more self-reliant and this is not impossible.  It is just that we wanted granite countertops more than safe energy systems.


Yes, this would cost money and that is why the whole story is damn painful. We have the money. We have the money….We also hear the complaints that this plan would generate inflation. This objection is hard to understand. We have massive excess capacity in almost every sector of the economy. Which business is going to start raising its prices because the government is supporting a major infrastructure program? Furthermore, if inflation did start to get out of hand, the Fed has all the tools necessary to keep inflation under control.


What’s the worst possible scenario, we get a recession like the 1981-82 downturn? That was a much more mild recession than the one we are currently experiencing, so it’s hard to see the basis for fear.


ΩΩWhy, oh why can’t we triple the US deficit?  This howl for more debt is heard loud and clear on the left because the left now runs America and resents being put in a fiscal straight jacket.  But alas, the right cheerfully refuses to tax the rich during good times due to its own bias in favor of privileges.  So the left is left holding the bag.  The right was happy doubling our national debt under Bush and Reagan.  And howls when Obama doubles the debt and showed no respect to Clinton when he reduced the debt growth to zero and then to positive pay off.


ΩΩWe shouldn’t fear inflation.  We should fear total economic collapse. And this is due to the floating fiat dollar suddenly becoming a toxic finance instrument and suddenly that flood of trillions and trillions of US dollars and debts flowing back home should strike fear in anyone’s heart.  We must sustain these foreign held dollars or we face fiscal ruin.  When this happens, we won’t be able to buy any foreign stuff and we offshored much of our civilization including the need to buy foreign oil.


Ellen Brown: Why “Sovereign Debt” is an Oxymoron

America cannot actually suffer from a sovereign debt crisis.  Why?  Because it has no sovereign debt.  As Wikipedia explains:


“A sovereign bond is a bond issued by a national government.  The term usually refers to bonds issued in foreign currencies, while bonds issued by national governments in the country’s own currency are referred to as government bonds.  The total amount owed to the holders of the sovereign bonds is called sovereign debt.”


Japan issued trillions and trillions of government debt all of which is denominated in yen and which were sold nearly entirely only to Japanese citizens.  Japan is a very closed society that jealously guards its borders.  Japanese government debt is a menace to savers in Japan but has little effect on world markets and can’t sink the world banking system if it goes into default.  And it will go into default in the next 20 years!


But the US debt is NOT ‘government issued’ just because it is in dollars!  It is SOLD to FOREIGN POWERS.  And this is why Wikipedia has the word ‘USUALLY’ inserted in its definition.  That is, we are the exception to this rule.  This is easy to understand: when Greece fell off the government debt list, it owed most of its debt in euros to fellow EU member banks.  Far from letting Greece ignore its debt build-up, Greece had to cut spending.


The temptation of the US to keep on spending and owing to itself is very great and history has a grim warning to us: this NEVER WORKS.  It always rebounds in hideous ways that are obvious to see.  But history is ignored by people like Ellen Brown because it is inconvenient. To further bolster her argument that wild government spending based on a dropping tax base is OK, she calls in another ditzy paper money fanatic, Damon Vrabel of the Council on Renewal in Seattle, who concludes:


[T]he sovereign debt crisis . . . is a fabrication of the Ivy League, Wall Street, and erudite periodicals like the Financial Times of London. . . . It seems ridiculous to point this out, but sovereign debt implies sovereignty.  Right?  Well, if countries are sovereign, then how could they be required to be in debt to private banking institutions?  How could they be so easily attacked by the likes of George Soros, JP Morgan Chase, and Goldman Sachs? Why would they be subjugated to the whims of auctions and traders? A true sovereign is in debt to nobody . . . .”


HAHAHA….a true sovereign is not even in debt to itself!  Many a sovereign ran deep into debt due to foreign wars.  Louis the XIV did this to France.  France stumbled along for another 50  years after it ran deep into debt and tried using every trick in the book to keep from declaring bankruptcy and then….went bankrupt!  Duh!  It takes time for the noxious effects of funny money games to show up.


Generally speaking, the tricks used to exceed revenues work just fine but once the effects begin to show up in a very negative way, it is too late to stop the machine from destroying the entire banking and economic system.   This is why we must resist temptation.


A true sovereign need not indebt itself to private banks but can simply issue the money it needs. That is what the American colonists did, in the innovative paper money system that allowed them to flourish for a century before King George forbade them to issue their own scrip, prompting the American Revolution.  It is also what Abraham Lincoln did, foiling the Wall Street bankers who would have trapped the North in debt slavery through the exigencies of war.  And it is what China itself did successfully for decades, before it succumbed to globalization.  China got the idea from Abraham Lincoln, through his admirer Sun Yat-sen; and Lincoln took his cue from the American colonists, our forebears.  We need to reclaim our sovereign right as a nation to fund the Common Wealth they envisioned without begging from foreign creditors or entangling the government in debt.


ΩΩChina, before Mao, did the usual thing: printed paper money until it was worthless.  They even published a picture of their central bank on the issues with the words basically saying, ‘There is gold in this bank so you can trust us’.  But the gold was way too little.  Inflation raged.  China’s government staggered and fell and China fell prey to Japanese incursions.  Which the Chinese have not forgotten.  No, and the US supporting Japan and Korea in military matters makes this much worse.


ΩΩUnlike Ellen Brown, I am very fond of history.  Here is a story from my own blog that talks about the history of money in China from 2008:  Money Matters: History of Chinese Trade and Money

During the last few weeks, I have read many commentaries trying to explain the current mess that world trade is in today. Virtually no one seems to understand the trap we are in is due to trade imbalance, not banking difficulties. The banking problems grew out of the trade problems. And worse, the trade problems grew out of the difficulties of the US empire funding its military arm via debt, not taxes. Also, I wish to talk about the history of China’s money. For China was the inventor or leader in the use of currencies, paper fiat money and global trade relative values. It is also a tragic history which is even more important.


ΩΩAnd here is another story from the same year, 2008: Money Matters: 0% Global Interest Rates Totally Destroys Banking

World stock markets shot through the roof on wishful thinking that the US public will have access to 0% financing and thus, be able to buy, buy, buy more stuff. I shall disabuse everyone of this notion. It isn’t going to happen.


But first, I have to address a philosophical issue today: the central bankers are destroying banking in their looney game of trying to control economies via interest rates! The role of bankers is rather simple: they have to balance the creation of credit with reserves and savings! They don’t sit down and say, ‘Should we make the economy hotter?’ They shouldn’t decide, unilaterally, ‘We should cool the economy, it is growing too fast.’


They have one job: to preserve the reserves and to grow it so it keeps up with credit creation.


This is what has failed! This is why all banking is now collapsing! This is a total failure of the entire philosophy of the concept of central banking! The ebb and flow of interest rates is due to trade issues and wars. And the only role the bankers have in all this is to raise the rate’s basis whenever they notice that someone is borrowing too much and is becoming a credit risk.


This means tracking statistics and this is in particular, the M3 stats that Bernanke just cloaked in obscurity. When there is too much debt, the chance of going bankrupt rises in direct proportion to the climb in borrowing. Red flags appear and to stop the madcap borrowing, the bankers are supposed to raise rates! How simple can this be?


Well, the mandate of the bankers is NOT to protect our savings. That is obvious. Savings are always sacrificed on the altar of ‘growing the economy’ via debt creation. Since no one ever wants this faux growth to stop, the tendency is to keep interest rates below the rate at which it can attract enough savings to capitalize the banking system.


ΩΩAnd here is a final word, from the IMF.  IMF hails China’s policy response in financial crisis

(Xinhua) — Chinese authorities “quick, determined and effective” policy response to the global financial crisis has helped mitigate the impact on the economy and ensured that China has led the global recovery, the International Monetary Fund (IMF) said on Tuesday.


“Executive Directors commended China’ s proactive and decisive policy response to the global economic crisis,” the IMF Executive Board said in its annual report on China’s economic policy assessments and recommendations after consultation with Chinese authorities.


The IMF appraised fiscal stimulus China adopted during the crisis. “Public infrastructure spending was quickly increased, taxes were lowered, the government put in place incentives to boost purchases of consumer durables, and pensions, social transfers, healthcare and education spending were all raised,” it noted.


On the part of monetary policy, the report noted that China’s central bank lowered interest rates and reserve requirements, and removed limits on credit growth, which led to an extraordinary surge in bank lending.


“These policies were instrumental in arresting the downward momentum to both activity and confidence,” said the report.


And one last look at Japan:  Tibor at Double Bank Costs Undermines BOJ as Lending Contracts –

Japanese banks are setting benchmark interest rates at about double what they charge each other for short-term loans, undermining the central bank’s efforts to spur the economy.


The Tokyo interbank offered rate, which helps determine costs for about 137 trillion yen ($1.6 trillion) in domestic lending, fell to a four-year low of 0.38 percent, or 0.38 percentage point, from 0.46 percent at the start of the year. The three-month unsecured call rate, which represents actual lending costs between banks, was between 0.125 percent to 0.20 percent in May and June, according Japan’s Association of Call Loan and Discount Companies.


“Citing higher levels for Tibor makes it easier for commercial banks to explain to their corporate clients why they can’t lower lending rates,” said Masaaki Kanno, chief Japan economist at JPMorgan Chase & Co. in Tokyo, who worked at the Bank of Japan for 25 years. “Lenders are reluctant to lower Tibor because they want to protect profits.”


ΩΩEven though Japan is nearly totally sovereign, it is sovereign in debt, not wealth.  That is, it does sit on a huge FOREX holding of over a trillion US dollars which does give Japan immense heft in world currency markets which the Japanese exploit to the hilt, but too much debt is too much debt.  This is why Japan flounders 20 years after its own domestic credit bubble popped.


ΩΩManufacturing in Japan was hammered during this depression.  They need to export more.  They need the US military umbrella to expand their mercantile domination of Asia.  They need more ZIRP lending to borrow infinite funds.  One of the follies of people yapping about funny money solutions to our over reliance on debt building comes from the fallacy of growth: if you double anything over time, it suddenly goes shooting upwards in volume or numbers to infinity.  This is the business of the ‘hockey stick graph’ we all should fear.


ΩΩYou can’t double debts every 8 years forever.  Eventually, this will go to infinity.  And not slowly, it happens suddenly.  The point where the graph shoots upwards is too late to stop.  We have to anticipate this and stop well before hand.  When we went from owing $4 trillion to $8 trillion in just seven years, this was a warning.  Now, we are going from $10 trillion to a potential of $20 trillion or more in just 8 years, this is terrible because the next 8 years will see it go to $40 trillion and then the next 20 years will see $80 trillion!


ΩΩThe only way out is to default via degrading the currency which is what King Louis XIV did and which the Sung Chinese did back when they invented paper money in the first place.  They all do this.  If metal coins are used, these are debased with more common metals and go look at our own coins: very debased over my own lifetime.  Ellen Brown and her gang’s solution to this is to debase the currency even more.  They might deny this but then, the gold markets will teach them a harsh lesson in reality.

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Filed under .diplomacy, .money matters, Free Trade, gold, Politics, war and peace

77 responses to “US Threatens China With Open Warfare

  1. nah

    no more war… afghanistan is already 2 mutch fun for its own good
    unlike iraq where they kill people that are seen as “pro western-educated-sunni-shiite-baath-baby killers”…. afghanistan is poor and makes iraq tribalism look motivated and fairly centralized twords national utilization
    lets face it the taliban ‘government’ let supernational foreigners import, RECRUIT, and purchase paramilitary’s in plain site… under the taliban you could blow up anything you wanted ‘bring your own explosives’… they sell drugs today, war tomorrow, and children when necessary ‘i would not sent my kids to an apes orphanage’… the government of afghanistan has been the barrel of a gun for a long time… and then the CIA failed to stop the great ape plan of ‘run airplane into biggest building’… success in afghanistan would truly be a great victory for the US
    but to expect afghanis to turn on the ‘ape master plan’ armed with information and protected from hunger…. let me point out, republicans still talk of Palin 2012 and pay speaking fees to listen to the oracle of reaganomics dude, people STILL view her as a real thinking polititian while glued to rush limbah all day
    the MSM touts palin as THE tea party and they dont protest
    money and power baby

  2. I think you are being too harsh on Ellen. She does seem to recognize the dangers of hyperinflation. Her main point is simply that debt payments are economic exploitation by the parasitic banking elites.

    Why should private banking elites profit off of public investments?


    ELAINE: History shows very clearly that countries that try the non-private banking systems always end up like Zimbabwe. This isn’t true with gold based money systems but no country runs this way today. People don’t like the gold system because it restricts lending. But then, something must restrict lending or this turns into a bubble. All attempts at using non-metal means of lending restrictions fail due to political reasons. It is far, far, far too tempting to lend to infinity on zero interest.

  3. Joseppi

    Here in the future Bikini islands, Hawaii, which is really a military reservation. The military’s embraced presence is because of the money the military industry brings to a state suffering from a loss of income from Japanese and American tourism.
    There is also plenty of support here in Hawaii for the military because of a large population of immigrants that feel that to become Americans they should join the army and exhibit blind allegiance.
    In today’s local paper regarding RIMPAC exercises…..check comments to get the mood of the locals.

  4. DeVaul

    Yeah, I am not surprised non native Hawians would be gung-ho for the military since their jobs and income depend on it.

    It is the same with the Gulf coast residents. They don’t really oppose offshore drilling or devastation of the ecosystem or animal life. What they oppose is loss of income from tourism caused by a corporation that goofed.

    I saw almost no one shed any tears for the massive loss of wildlife caused by the spill. All they could talk about was how their beach-side business had been hurt. They also talked about how to trick or fool people into coming down to the Gulf to spend money at their businesses.

    You think these people care about nuclear war?

    After the radioactive dust settles enough for them to see that they are just one of a handful who survived the firestorm, then… they will care, but not before.

  5. John

    “The BP scandal of the fake ‘dying’ terrorist bomber from Libya was supposed to be investigated by Congress but Britain and BP oil stonewalled these hearings and so the matter was dropped.”

    I’m surprised at you swallowing that one whole Elaine. Britain bent over backwards to produce the US favoured outcome in a supposed Scottish court with three handpicked judges but no jury.
    Magrahi was convicted on the flimsiest evidence against a background of far more convincing narratives being totally ignored, principally a theory that a DEA system for smuggling heroin from Lebanon for “sting operations” (yeah right) was used by middle eastern terrorists to slip the bomb in.

    Magrahi’s release was no more cynical an abuse of the rule of law than his original conviction.

  6. wb


    Yes. My opinion, Magrahi was innocent and was set up by the real ‘evil doers’. It’s a murky, dirty business, from start to finish. I’m very glad that the Scots stuck rigorously to their law, very refreshing compared to USA and English procedures of recent years.


    ELAINE: So….why was Libya’s dictator so set on freeing this guy and so celebratory when they succeeded?

  7. PLovering

    There is a food shortage in your near future.

    Fun read.

  8. Aussie

    @ Elaine
    Re: .. So, since we offer them free access to our very expensive military machine…
    …Here is the latest tit for tats about the South China Sea:…

    Will Cognitive Therapy or Medication for ALL US ruling elites prevent such obsessive compulsive disorder (OCD) or is it paranoia schizophrenia typified by above commentary?

    Witness the observations in the article below:
    Jul 29, 2010
    US goes fishing for trouble
    By Peter Lee

    China’s claim will be disputed by other Asian countries and at some point will be resolved amongst them collectively.

    There is a good deal of evidence to indicate that China is not trying to ratchet up tensions in the South China Sea, at least not vis-a-vis its southern neighbors.

    Rather, it appears that the United States is once again using a contentious issue to exacerbate a problem, isolate China diplomatically, and to make room for an expanded role for Washington as the protector of the interests of China’s smaller and more anxious neighbors – while diverting attention from certain provocative US actions.

    In the same article:

    ….The United States exploits a loophole in the Law of the Sea Treaty (a treaty that the US has not ratified) which…

    Sigh..what will cure those ruling elite state terrorists?
    PS ALL superpowers (including China) are tempted to do the same when too powerful.

  9. Paul S

    Hillary Clinton personifies what is wrong with the US ruling class. They are so inbred and insulated, they think they strike fear in the rest of the world. The reality is closer to a sneering contempt. I’m just curious: what exactly are Hillary Clinton’s qualifications? Has she lived in China? Speak the language? Know anything about China’s culture? What are Clinton’s quals when it comes to International treaties? Defense issues? Foreign policy? I’ll hazard a guess: ZERO. It just astounds me how the US ruling class thinks all it has to do is show up and the rest of the world will quake in its boots. The ruling class start living in their own little fantasy world. This also explains why Newt Gingrich goes around saying the US should attack North Korea and Iran. OK, Newt. But you have to lead the attacks. BTW Newt: did you get as many draft deferrments as Cheney,five?


    ELAINE: The Clintons entered the White House with few assets and little money. They exited the White House broke. Within one year, they had $100 million and climbing. Bribery post-retirement is immense. Same happened to Tony Blair. This is massive corruption of the top leaders of the US and UK.

    Chelsea’s wedding is costing $5 million. This is insane. We see the newcomers to the ruling elites being generously rewarded for…creating free trade, open international pirate tax evading banking and wild asset bubbles.

  10. nah
    5) Skeptics argue that this wide range of uncertainty about future temperature changes lowers the need to act: “Why spend money when you’re not certain?” But since the penalties can rise at an accelerating rate at the tail, a wider range implies a greater risk (and a greater expected value of the costs.) This is logically and mathematically rigorous and yet is still argued.
    i have yet to find a person that thinks global warming is anything but a normal/given… as i see it id rather have some real prices for peak oil vs. subsidies of the establishment… its not that energy exploitation is unrealistic, its that the systemic subsidies of status quo everyone ‘including this moron’ vote for every 2 years… powerful people like to mingle and melt into the populus… it feels powerful
    just a big party buddie’ and your invitation is in the mail. Dont like it then vote for someone else

  11. nah

    Paul S
    July 31, 2010 at 5:59 am
    It just astounds me how the US ruling class thinks all it has to do is show up and the rest of the world will quake in its boots.
    they dont… and we know it… the world is infact fragile to us all, human knowledge finally can see itself. what will it see

  12. nah
    Jewish group says putting a mosque near Ground Zero will cause ‘more pain’
    lets see… the muslims got oil, and the jews got water… at least in the middle east
    hell, the CIA is to BLAME for not protecting America not israel or babel… those are just alternate realitys

  13. nah

    July 30, 2010 at 4:23 pm
    money and power baby

  14. nah


  15. nah
    The Jamboree kicked off this week at Fort A.P. Hill in Virginia, where organizers had invited the president to speak to the 45,000 scouts in attendance. All three of Obama’s predecessors have made it to one Jamboree while in office.
    LOL courting the sarah palin vote… i was a boy scout… twas upon a tree fort in winter we built that i herd the songs of 2LiveCrew

  16. Aussie

    @ Nah
    Re: lets see… the muslims got oil, and the jews got water… at least in the middle east

    I like your way with words.
    Great one.

  17. Wu Wei

    EMS, you NEVER EVER address the real issue Ellen Brown is talking about: why is the power to issue and control the money supply in hands of a couple of PRIVATE BANKERS?!?



    ELAINE: The answer is simple: they can go bankrupt. Bankrupting a government is dangerous. The problem here is, the bankers took over the government so they didn’t have to go bankrupt. So the government is on track to go bankrupt. The reforms are NOT in the direction she wants, history clearly shows us that her solution leads to super-hyper Zimbabwe inflation.

    No, the route for change is to break up the big private banks! The opposite is happening due to too much government support. Remove the government support, let the bankers go bankrupt. Fear of this will stop them from overlending. And of course, go to a true metal restriction standard again.

  18. Wu Wei

    I don’t get why anyone would want to destroy someone like Ellen Brown, you can hardly call her an enemy of the USA. At least she is talking about stuff people need to hear (usury, FED privately owned etc) about. So why are you so busy trying to KILL her off completely? No REAL enemies to fry??!?!?

    EMS, are you working for the elite who wants to go back to the gold standard, the OLD elite (before the Rockies and Rothschilds elite)? I ask this because after following this blog for a couple of years it has become obvious to me that you too, have your own agenda…


    ELAINE: Economic crashes and trade deficits happen due to too much easy lending leading to a build up of too much principal debt. We have to stop this. It is destroying the fundamental basis of our economic system! This is my agenda. To save my country from financial and political ruin. It is NOT a painless process at all! The worse the principal debt overhang, the more painful. We have to stop some point in time, doubling out debts. Might as well stop now. The more later it is the more painful it is.

  19. wb

    @Wu Wei

    “why is the power to issue and control the money supply in hands of a couple of PRIVATE BANKERS?!?”

    As I understand it, ( don’t say I agree or support ) the argument is/was that putting it in the hands of politicians is even more dangerous and disastrous …

  20. John

    @ WB

    Hi WB. Not sure how rigorously the Scots stuck to their law re Magrahi, but a necessary condition of his compassionate release was that he abandon his appeal.

    The US should be relieved that he has gone and they will never have to answer to a real enquiry. All the mock-outrage at the top makes me puke.

  21. Colin

    “the argument is/was that putting it in the hands of politicians is even more dangerous and disastrous”

    That can’t be the right argument, because, i find that impossible to believe, i simply don’t believe anyone, group or institution could be more dangerous or disasterous, than Goldman-Hacks et all. Maybe the Mafia?

    And i can’t believe that any arrangement could be more likely to lead to inflation, and general bad management of the economy than the one we have at the moment.

    If that where true then the soviet union should have blowen appart due to hyperinfation within five years. But the actual causes of it’s blowing appart where quite different.

    I suppose, the argument must be that then the politicans would controll EVERYTHING: the law, the privalage, the money. In theory, because they (private banks / government) are oppositional: The bankers aren’t the government and don’t have the same intrests. Mutual suspicion and hatred, prevents them from working together and doing damage.

    But, seriously, when was the last time the govt. was opposed to the private bankers? They, both parties, and the private bankers are on exactly the same team, and have exactly the same interests.

    But if the country’s economy needs checks and balances, isn’t that exactly what congress and the senate is designed to provied? And in it’s current silly season of fillibustering everything that moves – isn’t that all the checking and balancing you could ever want?

    If you want more, then how about this for a proposal: have an election, the largest party Dem/Rep gets to form the government, the second party Rep/Dem gets to control the money supply. One lot gets to propose gov programes the other lot decides how much money they get. Imagine how likely the Iraq war would have been if Cheney had to go to with begging bowl to minority dems and ask them for the money – he’d have been told to go jump.

    (Or, you could do it with the congress proposing and the senate controling money supply)

  22. emsnews

    People confuse government as the bank and bankers as a bank. It should be painfully and easily understood: when government lend too much money to the people and print paper to hand out, the entire economy collapses. When bankers do this, it collapses, too.

    BUT when governments do this rather than regulate lending, are the eager lenders, the whole country ceases to exist as a country and fall into chaos and destruction. The USSR fell into this hole and lost 1/2 of its size and the population shrank in the remaining parts. People died.

    Here, in the US, our banking system went under but we still have a government. Of course, the whole point of having outside bankers is simple: YOU CAN PUNISH THEM and even KILL THEM when they screw up.

    In this case, since the bankers own our government, they were saved instead of arrested. But then, this is true of the war profiteers who lose wars for us and are bankrupting our government: we definitely need reforms but the reforms should involve RESTRICTING LENDING for the key driver in all of this is too much borrowing for banking and wars.

    To restrict borrowing means the government has to be very mean to everyone and not hand out money like candy. This requires a complex system of checks and balances as well as regulations and laws. The fundamental basis for this is the people.

    But we want more easy money, not strict restrictions on money creation via lending! We want the joys of trade deficits and at the same time, jobs here at home! We want contrary things and can’t concentrate on fixing things the hard way (restrictions on lending coupled with protectionism).

  23. eso

    One of the respondents above wrote: “History shows very clearly that countries that try the non-private banking systems always end up like Zimbabwe.”

    Yeah, but before Zimbabweans were put under the Western thumb, they had a king, who at the end of his life paid for his sins as the president of the non-private banking system with his life.

  24. MikeM

    WB, I have a bone to pick with you.

    I don’t buy this “chill out” BS. I’ve heard similar nonsense before. Typically the opposing argument is unaccompanied by logic or reason, and is presented as an attempt at personally assuming to be calm and secure, and therefore supposedly in ownership of logic and reason, which supposedly following will be a naturally positive outcome. It’s BS, and history is proof of it.

    At least that’s what egotistical bozos want witless witnesses to think. HAHAHAAA…I’ve been around the block a few times, so don’t try me. I promise I can fry you to a crisp in any conversation, I guarantee it… I’ll be the last in line to stroke your ego, and the first to get into your face. ‘Matter of fact, go fuck yourself. Lest you didn’t read that correctly the first time, GO FUCK YOURSELF. Want to bet how much content is worth vs vocabulary? 10:1 says you had to reread that last sentence to make sense of it.

    I can rip ya a new asshole, any day of the week. But please…I don’t wanna go there…At least, not now. For now, I just wanna play with ya. I’ll rip ya a new one later on…trust me. If you wanna…I’m very much game. You’re a clueless fuck, who thinks his opinion matters. Wipe the drool off your face, moron. You don’t know how much you don’t know. Don’t sweat it…it took me a long time to learn humility myself. I was a very poor student in the subject.

    But if you want to engage…feel free to try me! I’m right here! I really do need some entertainment! As we used to say “jump, chump!”

    Adding insult to injury, you post an infantile link, as far as this insider is concerned. You’re living in dreamland, WB. You will never know what it’s like on the “INSIDE.” Howzabouta stop all your linking, and post REAL WORDS, based on REAL OPINIONS, using your REAL BRAIN. Can’t you speak for yourself? I know you can. Prove it again. We are all quite capable of surfing the internet, and posting links. When you do actually type your own words, I genuinely appreciate it. I know you’re not an idiot (like most), as you’ve proven it to me on the very rare occasions when you voiced your mind using your very own keyboard. Get a grip. HELLO!!! I only rarely challenge folks like you. I’m game. WAKE UP. No links, but lots of keyboarding! Can ya deal with it? I can, but know that I only get into town once or twice a week, sometimes less.

    There are times when logic and reason dictate being really pissed off. We are here. RIGHT NOW. A great big DUH, don’tcha know? I wonder sometimes how others grip (or ignore) reality. This is a time when being ‘calm, cool, and collected’ is complete idiocy. Or is moronic a better word? If you fail to understand genuine reality, than you choose to fool yourself, and you will arrive at the fate which you deserve. That’s your choice. Do you think you’re smarter than the system? The system wants to eat you alive, and needs to be brought down, but in the meantime you’re worried about your personal intellectual integrity, viewed through the minds of fools. How freaking stupid is that? At least that’s how I see it. You’re prolly one of those “King Of The Hill” guys. Again…go fuck yourself. It’s not about you or me, but about the truth of matters at hand. When was the last time you contemplated reality, and left yourself out of the equation in that process? I’m not joking here, not even a little. Just do it. I’ll bet you can’t. 20:1 says I’m right.

    And it’s really not good to fool Mother Nature. The lightning bolt will follow shortly. HAHAHAHAAAAA I’m fallible also, so let’s not get out on a limb here. I don’t wanna make more enemies than I already have….

    Cheers, sincerely!


    I’m way deep into nothing special…

  25. larry, dfh

    So we give armaments to Israel, who sell them to the Chinese, who now have very sophisticated weaponry. Israel gets a little leverage with China as regards Iran, and we get screwed, again.
    I think there are very strong roles for national/state banks. Uruguay has a strong national bank, and they are doing much better than we are. The country is known as the “Switzerland of South America”, so obviously every large private bank under the sun is represented, and these may curtain some of the extreme tendencies pf national banks which you mentioned. In the U.S., North Dakota is doing better than all the other states regarding mortgage foreclosures, because there is a state bank. Private banks view the public as suckers and chumps; government banks not so. Just like with health insurance companies. Let them compete with Medicare, instead of giving them the power of having the entire citizenry as their marks, unregulated.

  26. wb


    “I’m way deep into nothing special…”

    Good luck with that, kid. I have more interesting ways to spend my precious lifetime.


    ELAINE: I am rather baffled about why this dust up happened in the first place. People lose their tempers too easily sometimes.

  27. Joseppi

    “Here, in the US, our banking system went under but we still have a government……. since the bankers own our government…”

    I know, I twisted the context, but I thought it worth reiterating the point you make that even if the privately owned FED was replaced with a sovereign issued currency without a link to precious metals (or some determined ratio of printed money to an internationally accepted mystery X), the government would go Zimbabwe.

    The really big problems the US faces is that the banks own the US legislature and influences all branches of government.
    The majority of the unrepayable debt that has been issued by the US is owned by another government, which happens to be a homogeneous socialist mercantile country focused on self-interest.

    Elaine, what will happen when the US forfeits on it’s debts, or it is publicly acknowledged that it is mathematically impossible to repay such a gargantuan amount, thereby causing instability and outrage in China, and the banking industry quickly runs behind the cover of something like the Bank of International Settlements and presents a new financial world order to maintain peace and prosperity for those that accept it?

  28. Dragon

    This is a God sent opportunity for China to build up its forces. Now China has no more worry or slightest hesitation to build up its navy and airforce rapidly. You can surely expect China to increase its naval and air firepower within the next 5 to 10 years. This is what we Chinese nationalists have always been wanted for China for a long time. The South China sea is in our backyard. Time is on our side. We choose where and when to fight just like how the Taliban chooses their theater of war against foreign invaders. We will bleed interlopers to death. I am sure China is up to the task to respond to this unwarranted and grave threats from trespassers and trouble makers. Threat is not macabre, ignorance is. In fact, more threats for China is welcomed. This is the only way to force Chinese to work harder and more diligent to build up protections for the motherland. Very good. I am very happy to see this event developed as is. By the way, a little bit of history lessons. Russians declared their unconditional support for Vietnam during the skirmish between China and Vietnam. Only later Vietnam found out that an empty talk is just an empty talk. I am sure these ASEAN countries have not forgotten that lesson, namely Vietnam. Jolly good… Hehehe……

  29. Aussie

    @ Elaine response to Wuwei

    ELAINE: Economic crashes and trade deficits happen….
    ….This is my agenda…..

    I agree with Elaine and believe she has the evidence of economic history on her side:
    Entrepreneurs: From the Near Eastern Takeoff to the Roman Collapse

    Michael Hudson’s analysis supports Elaine’s agenda.

    The take home message: Mesopotamia (Iraq) to Mycenean Greek (1200BC) temples and palaces (semi public institutions INNOVATED basic building blocks of enterprise: money, account-keeping to calculate gains, credit and basic contractual formalities.

    OUR PUBLIC INSTUTIONS (Government) has to regulate and ensure regulatory compliance to ensure core community interests is preserved yet allow business to prosper as a delicate trade-off.

    OUR Government failed and we now witness how gargantuan corporations and oligarchic ruling elite destroyed that balance as it occurred in Imperial Rome and the dark ages etc.

    I will quote some pertinent lines to highlight some key points supporting Elaine below:


    ….that a drive for social status might dominate economic motives and be the key to the evolution of enterprise and wealth. ….. temples and palaces playing a catalytic role in production or provisioning commercial ventures. Yet it was these semi-public institutions, not individuals on their own, that innovated the basic building blocks of enterprise long were assumed to be timeless: money, account-keeping to calculate gains, credit and basic contractual formalities.

    …To the extent that public institutions were recognized as economic actors, they were assumed to be an overhead incurred at the expense of enterprise, unproductive of an economic surplus, not promoting it. There was scant thought of rulers regulating markets, canceling personal debts and reversing land transfers as a way to enhance prosperity.

    ….Wealthy Greek and Roman families controlled handicraft production, trade and credit directly rather than coordinating these activities via the temples and palaces.

    ….In light of this longue durée, the problem for economic historians is to explain why commerce and enterprise yielded to a Dark Age. What stifled enterprise thousands of years after the Near Eastern takeoff? For a century the culprit was assumed to be state regulation. But, it was the temples and palaces of Sumer and Babylonia that first introduced most basic commercial innovations, including the first formal prices and markets. The collapse of antiquity can be traced more to oligarchies capturing the state and dismantling the checks and balances that had kept economies in the Near East from polarizing to so fatal an extent between creditors and debtors, patrons and their clients, free men and slaves.

    …The ascent of Rome saw laws become more creditor-oriented and property appropriations more irreversible, while the tax burden was shifted increasingly onto the lower orders.

    ….The oligarchic ethic preferred seizing wealth abroad to creating it at home. The major ways to make fortunes were by conquest, raiding and piracy, slave capture and slave dealing, money-lending, tax farming and kindred activities more predatory than entrepreneurial.

    ….The moral is that what is most important for society is the institutional set of rules and social values that govern how entrepreneurs gain wealth. The path does not always lead upward toward higher productivity, to say nothing of greater efficiency for social development or even survival. There are many ways to seek economic gain. “Indeed,” observes Baumol (1990:894), “at times the entrepreneur may even lead a parasitical existence that is actually damaging to the economy.”

    ….Rome’s wealthiest and most prominent families sought to make as many clients, debtors and slaves as dependent as possible through force, usury and control of the land. This predatory rentier spirit led to the century-long Social War (133-29 BC) that saw the Republic polarize economically, paving the way for the subsequent Empire to give way to serfdom.


    It is worth reading the entire article for context.

  30. Elaine commented “Chelsea’s wedding is costing $5 million. This is insane.”

    These are the same compassionate and concerned people who told us for 8 years that we all need to pay more taxes in order to help the poor and homeless. Vince Foster won’t be attending the wedding will he?

    The news of the wedding reminded of a line from the movie Cocktail. “It’s a proctologist’s dream. Wall to wall a@@holes.”

  31. vengeur

    Now I know Hillary will be running for President again. She just locked in Jewish support with the marriage of her daughter to that jewish fella. There are no coincidences in politics, and this marriage is no coincidence. I wish you would do a column on that one Elaine.

  32. nah

    July 31, 2010 at 11:47 am
    be more dangerous or disasterous, than Goldman-Hacks et all. Maybe the Mafia?
    no probably more dangerous… the super con is…. the super con… they dont got money, all the money in the world is not enough, cant provide the power
    king of IT… all of it an noone is the wiser peddling money back to the citizens of the state that provides it… they are all really super people doing super things for super tomorrows, read the paper
    and we bitch

  33. nah

    July 31, 2010 at 3:54 pm
    Good luck with that, kid. I have more interesting ways to spend my precious lifetime.
    i work with a 50 yr old guy that calls 60 yr olds kid… but he really calls everyone kid… guess its all the way you view things
    dude the world is full of bigtimers and i write alot… but id have to agree this big papa can write a line or 2 bitching

  34. nah

    August 1, 2010 at 2:33 am
    It is worth reading the entire article for context.
    and after that read the constitution of the united states of america, theres a few ideas in there too

  35. wb

    “With little or no public awareness, geoengineering has become a multi-million dollar gambit, with private companies and well-known individuals now jockeying to test out their theories on an unsuspecting planet. The US Congress and British House of Commons have just completed a round of hearings to determine how much money they should allocate to the first tranche of real-world geoengineering experiments. In March 2010, almost 200 geoengineers met in California to draw up voluntary codes of conduct on manipulating the planet. Meanwhile, a team of scientists in Russia, led by controversial climatologist Yuri Izrael, has already begun seeding the skies with sulphur and is promising more.”

  36. nah

    A very good piece by William Gale at the Washington Post, “Five myths about the Bush tax cuts,” (hat tip reader Francois T) shreds the idea that the rescinding or reining in the Bush tax cuts (scheduled to lapse this year) would be a bad idea.
    iR h8t TexaS!!! but if peoiple are going to HAVE TO RAISE TAXES AGAIN… at least get people on board for this shit… YES WE NEED POLITITIANS not power brokers to get the MARKET TO RESPECT OUR TRACKING
    sorry smoking pot

  37. Aussie

    @ nah

    Re: and after that read the constitution of the united states of america, theres a few ideas in there too

    I regard the US Constitution as a superb socio-political document created by your wise founding fathers.
    The Indonesian founding fathers (liberated from the Dutch in 1945) used it as a reference for their own constitution.

    Ironically, your constitution was crafted after studying the rise and fall of Rome.

    What the founding fathers could not do was ensure its wisdom would be followed for eternity.
    The white ants started working and when impossible simply ignored it.

    I hope the US citizens can reclaim the need to follow the constitution and restore true democracy …..for the sake of us all.

  38. wb


    Fascinating piece of writing, thanks for the link.

    I suggest this is the stage the USA is at today ( Enron, Worldcom, etc, etc, etc, )

    “Two eminent Etrurian contractors, T. Pomponious and M. Postumius, loaded “worthless goods on board unseaworthy ships and [claimed] the insurance sum for army supplies when the ships sank.” Badian (1972:17f.) remarks that “The incident … shows the publicani, on practically their first explicit appearance in our record, already organized as an extra-legal pressure group, already putting private profit above the public interest, and willing to defend a member of their class, no matter how bad his case.” Cicero’s surviving defense pleadings show the publicani continuing to stick together in a tacit compact of mutual support. There thus was little peer pressure to behave better – and if anything, mutual support for the most rapacious practices.

    Rome’s major attempt to prevent commercial abuses occurred in 133 BC, when Gaius Gracchus established a system of checks and balances whereby the Senate and the publicani knights were to act as mutual checks by prosecuting each other’s misdeeds. But instead of the financial class turning into the “jury” class, the knights colluded with provincial administrators for mutual gain.”

  39. wb

    After that long sweep of history, describing commerce, wheeling and dealing, and the collapse of empires, I suppose this is the cutting edge, present-day America..

    Where next ?

    “It’s called the American Dream because you have to be asleep to believe it.”

  40. wb

    You know, if I was US President ( don’t snigger ! ) and actually cared about the well-being of the country and people, first thing I’d do would be reverse the decline of passenger railways… good for the environment and good for the economy and good for poor people who have to travel…

    But where would the money come from ? Give the contract to the Chinese ? Like last time ? 🙂

  41. PLovering

    Among politicians, only Ron Paul understands the idioticy of giving OUR money to a private bank and then allowing that private bank to charge US interest on OUR money.

    That is a crime called fraudulent conveyance … think mortgages underwater at closing.

    Also the crime of fraudulent inducement … where the pimp has no intention of paying his lady for services rendered.

    Taxpayers get screwed coming and going.

  42. PLovering

    Are US government terrorists our soldiers greatest enemy?

    “This is a very relevant question because there are currently more than 800,000 disabled vets from the Gulf War Era (300,000 from Desert Storm in 1991 and 500,000 from Operation Iraqi Freedom since 2003).”

  43. DeVaul

    Dragon makes a good point about the consequences of our forced involvement in the South China Sea.

    First off, though, the correct English phrase for:

    “Only later Vietnam found out that an empty talk is just an empty talk.”

    is: empty words are just empty words

    That aside, Dragon is right about how the Chinese leaders now have a perfect excuse to QUADRUPLE military spending. They have been “threatened” in their own backyard. Imagine the Chinese declaring that we are bullying our neighbors in the Carribean Sea and they need to step in and make sure everyone gets a fair deal in the Gulf of Mexico area. Can you imagine the howls from DC?

    All political leaders are cynical abusers of the general population, and Chinese leaders probably welcomed our intrusion secretly so that they can now demand more work and sacrifice from their peasants, just as our government does the same to us to fund their wars in far away places.

    For me the question is not whether a perfect form of government can be found, but whether ANY form of government can be established that does not immediately begin the process of taking over control of every aspect of our lives for the benefit of a small group of people at the very top.

    History shows that the latter is the norm, if not the absolute rule with no exceptions.

    Communists always take over private concerns in order to control the country, and capitalists always take over non-private socialist systems in order to control the country. History is very clear on this matter.

    I find this whole problem strange since humans are basically social animals who do not do well as “lone individuals” (contrary to all myths). I think the problem is that we are social animals on a certain level, say on the family, clan, or tribal level, but above that we simply become pawns in the geopolitical games of deranged psychopaths.

    I don’t really have a solution to the larger problem, especially since there are now too many people on the planet and not enough resources for them and other living things.

    It may be that after making a series of really bad decisions, we all must now face the inevitable consequences of those bad decisions, and we cannot complain about it. They were our decisions.

    I think it used to be called: “You made your bed, now lie in it.”

    (Sorry for the long post.)

  44. wb


    “All political leaders are cynical abusers of the general population…”

    Interesting post, with which I agree.

    Assuming human nature is much the same worldwide and through history, IMO, the best approach must be the ‘checks and balances’ idea, as attempted in the American Constitution.

    I was reading about the history of the small, isolated Welsh town where I grew up. Many centuries ago, they established a system which said that only property owners could be on the ruling council which made the regulations. And individuals only became eligible for election according to their public service and assistance to the poorest and neediest of the townsfolk. That seems eminently wise, to me.

    That was for a small community of a few thousand, where everyone knew everyone else. But it was self-organised, no authority imposed the system, it evolved by way of the ordinary folk deciding what seemed fair and just.

    Of course, when you scale up to mega-tribes of millions, it probably breaks down, even with very complicated and sophisticated checks and balances, because there will be too many loopholes for cunning selfish individuals to exploit, and once the general sense of justice and fairness is lost, everyone begins grabbing whatever they can get away with. Take the money and run…


    ELAINE: I descend from a long line of very nasty Norman knights who spent their idle time trying to crush the Welsh. A bloody, bloody business. ‘Justice’ meant the conquered people paid big taxes to sustain the bloody, bloody knights.

    This history of England is why even today, there is significant resentment in Ireland, Scotland and Wales aimed at the remnants of the Norman elites.

  45. DeVaul

    “because there will be too many loopholes for cunning selfish individuals to exploit, and once the general sense of justice and fairness is lost, everyone begins grabbing whatever they can get away with. Take the money and run…”


    I think that empires should be viewed not as entities that go bankrupt, but more as cancerous growths that reach a terminal stage. They are not really natural forms of society for human beings, any more than a boarding house is.


    ELAINE: Actually, I once ran a boarding house. It was very interesting…this is when I hosted a number of Chinese elites.

  46. wb

    Mmm. Thinking of the origin of Rome, as a sort of community of outlaws, a bandit refuge, it’s easy to see how they’d have strong mutual loyalty and co-operation, but as the thing grows larger, it mutates into something else, and then something else, and eventually gets corrupted and disintegrates.

    I wonder if Jefferson got some of his ideas from old Welsh communities, if it’s true that his ancestors came from Snowdonia.


    ELAINE: A famous Roman event they celebrated was literally called ‘The Rape of the Sabine Women’.

  47. wuen


    I agreed with you China need to build it military strength to protect it borders. I don’t agree the need to have a potential threat of foreign country invasion or interference to encourage it. It is better if China relationship with foreign countries are at peace. Development of military border protection is require even during time of peace.

    About your following statement: “Russians declared their unconditional support for Vietnam during the skirmish between China and Vietnam.” It is not the Russian but the Soviet Union.

    You made a good point about Vietnam China war. I would also add Georgia war in 2008. Both Vietnam and Georgia should have learn the lesson of the limited support from a hegemonic country. Georgia government need time to learn the lesson while Vietnam government have learned it. For this reason I don’t believe South East Asia will allied with American government against China.

    The hegemonic U.S. is seeking a submissive military relationship and not a cooperative relationship on both side. I believe the leaders of South East Asia are wise and are making the right decision for their country.

    Chinese government does not oppose South East Asia improving U.S. relationship. It oppose the U.S. interference into South East Asia bilateral relationship with China.

    As long as South East Asian governments and Chinese government are engaged, the U.S. government would be unable to create a similar incident like Georgia war of 2008 in South East Asia.

  48. if

    The chinese style of warfare?

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    YLMF open source, free, operating system (Ylmf OS) English Edition is released!
    The interface operation is clean and clear.The adjustment and creation is based on the user’s experience and usage.
    We firmly believe that Linux can do as well as Windows through our efforts and give customers more choices.

  49. Aussie

    wb and DeVaul,

    Re: …of the small, isolated Welsh town where I grew up.
    …..for cunning selfish individuals to exploit, and once the general sense of justice and fairness is lost, everyone begins grabbing whatever they can get away with.

    Thank you for some very interesting comments from you both.

    I remember reading about some communitarian colonies established by Australians in Argentina at the turn of the century. They collapsed because of internal tensions by some members with conflicting visions etc.

    The Australian aboriginal living within the continents interior extreme dessert was forced to roam within their ancestral lands in “family groups” of less than twenty people.
    They possessed were a materially impoverished but with a very sophisticated culture designed to survive well in the dessert.
    Basically, they had very strict customs to ensure harmony and avoid in-breeding and their mythologies passed thru the generations with songs and rituals internalized the geography of their lands and water sources etc.

    This meant a rock or a tree became a marker of spiritual significance enabling them to navigate with accuracy thru their land.
    Their “country” was their religion and identity.

    Transgressions were punished by customary laws…..their society were stable.

    The same applies to villages in which lifestyle, culture and value systems were accepted by all in that community.

    In both cases, the “economic system” was productive and designed to benefit the community…of course the above were relatively simple social systems where everybody was known to each other.

    A part of the present unbalanced western system with too much oligarchic power at the expense of the community is its size and complexity enabling community members to be ‘atomized” from each other in all dimensions.
    Plus our system is geared for rapid change that has provided the living standards we have today but not good when we overwhelm sustaining resource capability.

    One interesting point, in passing, is how the internet has become a unifying and liberating tool and threat to traditional ruin elite power on information and hedge politics?


    ELAINE: It seems that nearly all human tribe which ‘wander’ the landscape have very similar style of societies. But they can very swiftly morph into dangerous hordes that sweep across the land, killing everyone in their path (like the Mongols, for example). In general, though, they tend to keep themselves small.

  50. DrKrbyLuv

    Ellen Brown’s point is that a sovereign nation doesn’t need to borrow from private banks. Instead of issuing bonds, the treasury could issue money.

    We are paying banks interest for money they created for free based on the credit of “We the People.”

    Our private debt based money system is a parasitic scam that has been around for thousands of years. It has destroyed many nations and millions of people.


    ELAINE: Alas, history also informs us that this ends badly. This is why I keep calling for RESTRAINTS. Ellen and her friends want MORE money to appear magically to pay for all the things we dream of wanting. And we want many, many things.

  51. wb

    @ Aussie

    There’s something else in UK… there’s no written constitution, ( which may be an advantage, in that it allows for flexibility, or maybe a disadvantage, because nobody really knows their rights ) the administration just make it up as they go along..

    But there’s also a hidden controlling force, in the form of the Freemasons. As far as I can tell, almost everyone with any power is enrolled, and this is completely invisible to the broader public.

  52. Aussie

    @ PLovering, wb and DeVaul
    Re: ….that private bank to charge US interest on OUR money.

    The Wall street precipitated covert fiat dollar devaluation is roiling the world.
    This video shows the return of precious metal based monetary system has started in Jakarta, Indonesia.

    It seems there are several tectonic geopolitical threads implied involving a backlash against the fiat money and a profound cultural backlash on how the world sees itself?:

    Gold Dinar, Silver Dirham

    Will the ghosts of Mesopotamia to Mycenean monetary concepts be able to repeat Jesus overthrow the money changers in Herod’s temple, Jerusalem in 20BC?
    How ironic to see some Muslims return to an interest free precious metal concept shared by the three great Middle East religions at a time when US fiat dollar has invaded countries in the region.

    Jusrt a passing observation.

  53. PLovering

    Lurking behind all the false flags (9/11, swine flu pandemic, FED fraud, Gulf oil “spill”, chemtrails, invasion of Georgia, Afghanistan, and Iraq) we find the sovietization of America.

    “Why would Homeland Security hire former Stasi chief Markus Wolfe and former head of the KGB General Yevgeni Primakov?

    The key U.S. official behind the 9-11 cover-up was Assistant Attorney General Michael Chertoff, an Israeli citizen and son of a Mossad agent. Chertoff was the head of the criminal division of the Department of Justice at the time and the top boss of the FBI. From this position Chertoff managed the FBI’s “non-investigation” of 9-11, and supervised the confiscation and destruction of the critical evidence from the crime scenes, such as videotapes, aircraft debris, and more than 99 percent of the steel from the World Trade Center. The destruction of this crucial evidence is a crime in and of itself.

    Wolfe is the man who is credited with building up the feared East German secret police that was responsible for the disappearance and deaths of thousands of citizens. And, Primakov’s record is not any better. As skipper of the KGB he was driving force behind the machinery of state terror; a legacy that still has a chilling affect on many Russians.”


    ELAINE: Same reason we hired Nazis after WWII.

  54. Aussie

    @ PLovering, wb and DeVaul
    Re: ….that private bank to charge US interest on OUR money.

    Correction on above comment: Will the ghosts of Mesopotamia to Mycenean monetary concepts be able to repeat Jesus overthrow of the money changers in Herod’s temple, Jerusalem in 20BC?

  55. Aussie

    August 1, 2010 at 11:38 pm

    @ PLovering, wb and DeVaul
    Re: ….that private bank to charge US interest on OUR money.

    Correction on above comment NOT in 20BC: Will the ghosts of Mesopotamia to Mycenean monetary concepts be able to repeat Jesus overthrow of the money changers in Herod’s temple, Jerusalem?

  56. Claire Voyant

    War games in the South China Sea have their genesis in the trade imbalances that Elaine has been valiantly bringing to light. China has acquired a world monopoly on 17 rare earth minerals that are crucial to frontier technologies, including mobile phones, hybrid engines, superconductors, radar and smart bombs. Cutting-edge weapons technologies rely on Chinese samarium. The Hell Fire missile, precision-guided munitions, avionics, night vision technologies — all rely on Chinese-controlled components. In 2009, China controlled 97% of the production of these rare earth minerals.

    Suddenly the Chinese put the squeeze on the West, cutting back exports by 70% for the second half of 2010, claiming these minerals are needed at home. What to do? Countries that lack access to these crucial minerals — at any price — will be shut out of the technology revolution. (Fearing exactly this, the Japanese have reportedly been stockpiling supplies for the past 5 years). Caught off guard, the Pentagon is still scrambling to work out what this will mean for U.S. security.

    Arrest our politicians and “free trade” proponents — they have turned over national security to the West’s sworn enemy!

    Back in the ’90’s, the US controlled the entire production and supply chain for these crucial materials. Then we allowed China to flood our market with cheap exports, driving our own mines out of business. California’s key Mountain Pass mine closed in the mid-’90’s; German and Japanese-owned processing plants then switched all operations to China. Industry experts figure it may take as long as 15 years to rebuild the US’s lost production capacity.

    Meanwhile, turns out that rare earth minerals are widely distributed in many places, from the US, to Australia, Canada, even Greenland, which has a third of known reserves. But finding them in viable concentrations, and extracting them in the presence of radioactive Thorium is complex and capital-intensive. Nonetheless, the West now has to restore its vanished production capacity overnight — or threaten war to gain access to this crucial material. A stupid, stupid situation, and completely foreseeable.

    Just as it has with oil, the “free trade” dogma — with its false econometric models that don’t even begin to calculate the real costs and inputs — plays havoc with our national security. And rather than confront this ruinous and discredited philosophy, our sell-out politicians and “leaders” will choose war instead.

    Stop this madness!

  57. Claire Voyant

    DeVaul, Dragon, wuen … it’s not about “bullying” in the South China Sea … it’s the consequence of unbalanced trade issues, greed and market manipulation on a grand scale, and access to markets and material that will be played out in blood.

  58. Claire Voyant

    Link to informative background article on the economically-driven sabre-rattling in the South China Sea, summarized in earlier post … with apologies for multiple posts

  59. DrKrbyLuv

    Elaine wrote:

    This is my agenda. To save my country from financial and political ruin. It is NOT a painless process at all! The worse the principal debt overhang, the more painful. We have to stop some point in time, doubling out debts.

    Actually, the government must run deficits and constantly increase the national debt in order to keep the economy from imploding under our private debt based system.

    The national debt IS the money supply:

    “Loans alone cannot sustain the money supply because they zero out when they get paid back. In order to keep money in the system, some major player has to incur substantial debt that never gets paid back; and this role is played by the federal government.” – Ellen Brown

    The national debt is around $13.3 trillion dollars and the broad money supply measured as M3 is around $13.7 trillion. Without the national debt, there wouldn’t be a money supply (M3). All the talk about balanced budgets was a lot of bs.

    Eventually we will not be able pay the interest on the exploding debt and the economy will collapse. The debt based system was DESIGNED as a mathematical scam.

    National Bank Act of 1863 – “From this point on the entire US money supply would be created out of debt by bankers buying US government bonds and issuing them from reserves for bank notes…In numerous years following the [Civil] war, the Federal Government ran a heavy surplus. It could not (however) pay off its debt, retire its securities, because to do so meant there would be no bonds to back the national bank notes. To pay off the debt was to destroy the money supply.”. – John Kenneth Galbraith

    After the National Bank Act of 1863 took effect, the international bank cartel made the national debt the basis of our money supply. Lincoln won the Civil War but lost the nation’s financial sovereignty. Later, Secretary of the Treasury Salmon P. Chase said “My agency in promoting the passage of the National Banking Act was the greatest financial mistake in my life. It has built up a monopoly which affects every interest in the country.”

    Since that time, we have been a subservient financial client state of the international bank cartel. Later, in 1913 their monopoly was consolidated formalized into the private hands of a small and secretive group under the Federal Reserve Act. Every year, the government must go deeper in debt.

    Look for Barry Soetoro to continue running up the national debt because if he doesn’t, the economy will start to implode.

    The obvious solution is take back our sovereign right and power to issue our currency free from bankster debt.

  60. wuen

    @Claire Voyant

    China reducing the export of unprocessed rare earth minerals is a boon for the world industries in creating miners job. Hopefully the world will create new industries to extract rare earth minerals by themselves and create new jobs at the same time.

    Rare earth minerals can be found around the globe. According to Wikipedia, rare earth minerals is a historical misnomer. The rarest of earth mineral elements thulium and lutetium are 200 time more common than gold.

    The propaganda of limited quantity of rare earth minerals is an excuse to interfere in foreign countries affair. I don’t believe that North American does contain few rare earth elements or the majority of it is concentrated in China.

    The total quantity of rare earth elements exported out of China will not change. Only the amount of unprocessed elements will be reduce. Previously China did not need rare earth elements, but now it is upgrading it industries production to high technology and these elements are essential to make these industries grow. China is still exporting these minerals but at a higher process level than previously.

    The article by Ambrose Evans-Pritchard from your link is a propaganda. It spin the facts to suite it purpose of creating fear from China.

    I don’t think the U.S. is bullying China because China is not a weak nation or is in a vulnerable situation. I am against U.S. current policy of creating frictions in the relationship in East and South East Asia.

    Nation will not go to war for limited resources in this current age. So I disagree with your point of view. What lead to war are other factors which I don’t have a good grasp of notion yet. Limited resources is an excuse.

  61. emsnews

    The problem with suddenly digging up ‘rare earth metals’ is that it takes lots of time to do this. China has a head start in this matter and this is of great significance. Time scales matter greatly.

    The West will eventually find its own resources and exploit them but they will be so far behind in developing markets for the goods needing these materials, it will be hellishly hard to catch up with the Chinese.

    Of course, we could do protectionism…HAHAHA. Yup.

  62. PLovering

    Lurking behind all the false flags (9/11, swine flu pandemic, FED fraud, Gulf oil “spill”, chemtrails, invasion of Georgia, Afghanistan, and Iraq) we find the sovietization of America.

    “Why would Homeland Security hire former Stasi chief Markus Wolfe and former head of the KGB General Yevgeni Primakov?

    The key U.S. official behind the 9-11 cover-up was Assistant Attorney General Michael Chertoff, an Israeli citizen and son of a Mossad agent. Chertoff was the head of the criminal division of the Department of Justice at the time and the top boss of the FBI. From this position Chertoff managed the FBI’s “non-investigation” of 9-11, and supervised the confiscation and destruction of the critical evidence from the crime scenes, such as videotapes, aircraft debris, and more than 99 percent of the steel from the World Trade Center. The destruction of this crucial evidence is a crime in and of itself.

    Wolfe is the man who is credited with building up the feared East German secret police that was responsible for the disappearance and deaths of thousands of citizens. And, Primakov’s record is not any better. As skipper of the KGB he was driving force behind the machinery of state terror; a legacy that still has a chilling affect on many Russians.”

  63. Aussie

    @ DrKrbyLuv

    Re: The national debt IS the money supply:…

    Well said.

  64. Wu Wei

    It’s good to see people like DrKrbyLuv, Plovering and CK on here again 😀

  65. Wu Wei

    Yep, without debt we’d have no money in our system today. All of it, debt owed to private banking scum fond of usury.

  66. “History shows very clearly that countries that try the non-private banking systems always end up like Zimbabwe”-EMS

    Forgive me Elaine but this is, quite frankly, hogwash. I’ve have yet to encounter a convincing argument for maintaining the system whereby the creation of money remains in private hands outside of democratic control. There is no valid reason (beyond the self-serving rationalizations of elites) that banking cannot be operated as a public utility along the lines of the State Bank of South Dakota or, for that matter, the Bank of China.


    ELAINE: A public utility? Did you read my news carefully here? The US and UK are both selling off their public utilities to foreigners.

  67. JSmith

    ““China has indisputable sovereignty of the South Sea …”

    Yep. All the way out to 200 miles.

  68. DrKrbyLuv

    Well said Coldtype!

    The honorable Wright Patman (U.S. Congress from 1929 to his death on March 7, 1976 and chairman of the House of Representatives Committee on Banking and Currency for 40 years:

    “When our Federal Government, that has the exclusive power to create money, creates that money and then goes into the open market and borrows it and pays interest for the use of its own money, it occurs to me that that is going too far. I have never yet had anyone who could, through the use of logic and reason, justify the Federal Government borrowing the use of its own money… I am saying to you in all sincerity, and with all the earnestness that I possess, it is absolutely wrong for the Government to issue interest-bearing obligations. It is not only wrong: it is extravagant. It is not only extravagant, it is wasteful. It is absolutely unnecessary.”

    “Now, I believe the system should be changed. The Constitution of the United States does not give the banks the power to create money. The Constitution says that Congress shall have the power to create money, but now, under our system, we will sell bonds to commercial banks and obtain credit from those banks.”

    “I believe the time will come when people will demand that this be changed. I believe the time will come in this country when they will actually blame you and me and everyone else connected with this Congress for sitting idly by and permitting such an idiotic system to continue.”

    Yes, we should blame Congress for perpetuating this scam and we should also question economists, economic theories, academia and apologists for sitting by idle and allowing the deception to continue.

    This is the most important “secret” of the status quo (PTB) – we have the sovereign power to create our money for free.

    When people come to this realization, the dark ages of usury and debt enslavement will finally come to an end.

  69. emsnews

    Why did the Fed Reserve scheme begin?

    I have to write more about this using old, old newspaper stories. It was quite a debate, the business of debating about gold versus silver which everyone knew was a debate about degrading the value of the ‘dollar’ as a currency unit.

    They recognized even back then, that when the government got to print money, it degraded in value very fast. The bankers told the public, the Fed scheme would prevent this DUE TO THE GOLD PEG which was used when the Fed was launched before WWI.

    This did prevent wild inflation until the Vietnam war when wild spending ran out of control and Nixon killed the gold peg. Since then, the dollar has lost 95% of its 1912 value.

    To fix this, the LAST thing we need is for Congress to be able to make up its own debt no matter what!!!!! Note that they cheerfully spend a trillion dollars fighting Muslims and will spend $10 trillion fighting a billion Muslims in the future if they could simply add debt with no hinderance.

    This is why I am for restricting lending, not expanding it.

  70. DrKrbyLuv

    Elaine asked:

    Why did the Fed Reserve scheme begin?
    To imply that the “scheme” began with the Federal Reserve Act is to miss a lot of important monetary history. The Federal Reserve Act consolidated and formalized the international banking cartel’s (Rothschild dominated Bank of England) financial rule of America through usury but it didn’t begin there.

    Prior to that, the international banking cartel scored a huge victory with the National Bank Act of 1863. John Kenneth Galbraith explained:

    “From this point on the entire US money supply would be created out of debt by bankers buying US government bonds and issuing them from reserves for bank notes…In numerous years following the [Civil] war, the Federal Government ran a heavy surplus. It could not (however) pay off its debt, retire its securities, because to do so meant there would be no bonds to back the national bank notes. To pay off the debt was to destroy the money supply.”

    Perpetual debt became a way of life for America. This can be seen in today’s economy as the national debt ($13.4 trillion) is very close to our M3 money supply ($13.7 trillion). If the government repaid its debt, the economy would collapse as the money supply would decrease by the same amount.

    In our privately owned and regulated debt based system, there will always be more debt than money. This was understood well before the Federal Reserve Act of 1913, but inexplicably, it passed anyways.

    For example, in 1891 Mary Hobart published “A Scientific Exposure of the Errors in Our Monetary System”:

    “Our present monetary system was established by legislation, without any reference to the mathematical science of numbers.

    To make entirely sure that our reasoning upon the impossibility of paying interest when the principal is all loaned without the production or coining of money is logically and mathematically true, we will apply to our problem the test of higher mathematics. In examining the credit system we find that it must be composed of a definite number of interest-bearing contracts. By analyzing one of these contracts we shall find two parties are concerned in them, the borrower and the loaner. The loaner loans a stipulated sum of money called the principal; the borrower receives it and agrees to return a like sum together with a premium called the interest, which is estimated at a legal rate per cent on the sum loaned for a given time. Failure of the borrower to comply with these conditions calls for the forfeiture of his securities. This comprises all the quantities and considerations of an interest-bearing contract. It may be algebraically expressed thus:

    Let a = the amount of a contract (which is the sum of the principal and interest)
    p = the principal
    r = the rate per cent
    t = the time

    Now p = a at the date the contract is drawn, and p+prt/100 = a at the time the contract expires. Quantities that are equal to like quantities are equal to each other. Hence p = p+prt/100 which is impossible

    This formula shows that the contract is impossible, that prt/100 calls for a production of money and cannot be canceled by a production of values. Neither can it be eliminated by a contraction of t, which constantly increases pr/100. This being true of one contract it must be true of any number of contracts with the credit system may contain. This formula solves one of the important problems of the age and is presented to the scientific people of America for inspection.

    The mathematical conclusion which must be drawn from this formula is that the interest on our circulating medium is imaginary and impossible, and under our present system must be satisfied by securities, which is legalized robbery.”
    – – – – – – – – – – – – – –
    We can see this in the economy today as the total amount of the national public debt and private debt exceeds $57 trillion (not including unfunded liabilities and local government debt) while our M3 as mentioned above, is only $13.4 trillion.

    How do we pay $57 trillion when we only have just over $13 trillion. We can’t – unless we borrow the shortfall, which brings more debt in a perpetual loop that can only grow.

    The truth is that our private debt based system cannot be sustained as constant, and accelerating, growth is needed. It is a pyramid scheme designed to move all money and power to the top of the pyramid.

    It is inherently flawed with mathematical certainty. The sovereign power to issue and control money must be returned to the government if we are ever to aspire to be solvent and free.


  71. ES…once you admit the ‘Left’ is Evil [and usually wrong about what side of the issue to be on] and see that it ‘works the politics of guilt’….
    the ‘peace groups’ demonizing of Arizona is just more bad biz as usual.

  72. ‘he key U.S. official behind the 9-11 cover-up was Assistant Attorney General Michael Chertoff, an Israeli citizen and son of a Mossad agent. Chertoff was the head of the criminal division of the Department of Justice at the time and the top boss of the FBI. From this position Chertoff managed the FBI’s “non-investigation” of 9-11, and supervised the confiscation and destruction of the critical evidence from the crime scenes, such as videotapes, aircraft debris, and more than 99 percent of the steel from the World Trade Center. The destruction of this crucial evidence is a crime in and of itself.’

  73. Clueless

    @ Larry: Brilliant! Keep thinking outside the box brother.

  74. emsnews

    I attacked Chertoff nonstop on my blog ever since BEFORE 9/11. He is certainly deep in doo-doo in that matter.

  75. fairly new here..someone at Jim Kunstler point me to this and Taki mag.

  76. Shockuhzulu

    For many year I had a Gay, closeted, MIT trained high IQ-FOOL for a friend..When I unhappily told him [1990s] of Hillarys desire to spend 8 million dollars of govt $ to teach women in the turd world reading he said…


    In hindsite I coulda said:
    If its a great idea you and she can foot the bill….not the rest of us..
    his in hog uration was a 30 million? dollar party [would be 100 million now?].

    disgusting people

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