A Real New Deal or a Green New Deal & Global Dictatorship?
As scary as it is for some to admit even at this stage of the game, the current financial system sits precariously on the edge of a meltdown beyond anything ever recorded in human history. Normally, such a systemic meltdown would generate such turbulence and panic that the masses of complacent subjects would be induced to action in defense of their families and nations, however under current circumstances, the coronavirus pandemic has ensured that no such mass movement, or policy fight has taken shape.
As I wrote in a February 27, 2020 editorial Why the Coming Economic Collapse Will NOT be Caused by Coronavirus, the inevitability of the meltdown has been well known to all leading central bankers and highly placed officials in “a position to know” for a very long time. This fact was known even before the new wave of emergency bailouts were begun in September 2019 starting with $50 billion/night of overnight repo loans. It was known even before the age of bailout was created to postpone the 2008-09 collapse of the system under threat of Martial Law. It was known before Glass-Steagall was repealed in 1999 and over-the-counter derivatives were deregulated in 2001. Let’s just say it’s been a part of a very ugly plan for a very long time.
But make no mistake, you didn’t have to be a “highly placed” banker or technocratic social engineer to know this collapse was going to happen. No crystal ball was ever needed.
All a thinking person had to do was assess the observable underpinnings of the post-1971 financial order and look with unbiased eyes upon the consistent rate of collapse of the PHYSICAL economic platform that supports life while taking note of the paradoxical hyperbolic increase of monetary assets, and speculative claims in the system every year since the age of “deregulation” was ushered in (and the post WWII paradigm of industrial growth economics was thrown in the trash). Outsourcing of vital manufacturing, decay of infrastructure maintenance and improvement, privatization of public goods, and loss of machine tool powers simply resulted in the transfer of wealth into the hands of a small elite, and the stripping of nation states from the economic sovereignty they once enjoyed.
Where monetary growth used to be tied to the measurable growth of physical economic variables mentioned above, the post-1971 world order demanded that money could only grow according to debts that were ever more disassociated from reality. Instead of justifying the growth of infrastructure, and improvements in the productive powers of labor, debts became tied to mere speculative activities setting in place a time bomb in the form of a new bubble economy. Whether artificially induced or left to their own devices, bubbles by their very nature ALWAYS pop
Since the chaos of the collapse of the trans-Atlantic bubbles has not yet occurred, we still have a choice.
Hyperinflation 101: How NOT to Run an Economy
Either we can break up the banks with Glass-Steagall bank separation, and a total bankruptcy reorganization (aka: Debt Jubilees) or we can pump more money into the zombie banks in order to accelerate hyperinflation and fascism following the 1923 German model.
Sadly, up until the present moment, the playbook used was published in 1923.
In response to the collapse, and precipitated by the covid-19 pandemic which has been used to justify the shutdown of the economies of the world, the NY Federal Reserve has been converted into a giant Hedge Fund designed to purchase trillions of dollars of junk debts from private banks to the tune of $9 trillion.
Former banker and author of Planet Ponzi, Mitchel Feierstein recently wrote an RT editorial that put it succinctly: “The fed is socializing hedge fund investments gone bad placing tax payers at risk.”
Unlike too many analysts who prefer to merely opinionate about the crisis, Feierstein happily strikes the nail on the head by zeroing in on the conceptual issue of good vs false standards of value and debt. Is all debt evil? Of course not. If a farmer wishes to take out a debt to buy a better tractor which will improve his productivity then it will extinguish itself over time. If a heroine addict wishes to take out a debt to feed his addiction then that debt would obviously be destructive.
In this vein Feierstein states: “Debt is never a bad thing if it is used to create organic growth or fund infrastructure development that creates opportunities and employment. Debt is dangerous when used to develop grotesque weapons of financial destruction by structuring synthetic derivatives products that use leverage of 300 to 1 or more- meaning that $1 million can control $300 million in assets.”
The system of derivatives products and leverage referred to by Feierstein has now attained levels which “officially” amount to $700 trillion, but which most expert economists claim runs as high as $1.5 quadrillion of fictitious capital. World GDP is no greater than $80 trillion. This is the bubble that threatens to tear apart the nations of the world now.
Real New Deal NOT Green New Deal
Although swamp creatures like Rhodes Scholar Rachel Maddow and other democratic zombies have made daring comparisons of Biden’s recent speech announcing the US government’s intervention into the collapsing Signature and Silicon Valley Banks to Franklin Roosevelt’s intervention into the bank runs of 1933, nothing could be further from the truth.
As I wrote in my previous paper How to Crush a Bankers’ Dictatorship: A Lesson from 1933, Franklin Roosevelt’s New Deal was NOTHING like the “Green New Deal” which Biden has been assigned to promote. It was also nothing like the bank bailouts (or bail ins) which the current swamp creatures are pushing in a last ditch effort to keep Wall Street afloat over the dead bodies of millions of americans.
When Sir Michael Bloomberg (yes he was made a knight of the British Empire in 2014) or the Bank of England’s Mark Carney, or some other Malthusian technocrat call for a Global Green New Deal, or soon “bail in regime”, it is important to recognize that this is a trap and similar to the original in name only. Since this fact is still not widely known, a few words on this must be stated.
Carbon taxes, cap and trade schemes, biofuels (to burn the food supplies), or inefficient windmill and solar energy infrastructure may create a momentary spike in jobs that would satisfy Keynesian economists who think economic progress comes from individual “bottom up” purchasing power, but the longer term EFFECT will be the opposite of that attained during the New Deal of the 1930s and the needed remedies to support today’s nearly 8 billion people.
Rather than increasing industrial activity, large scale infrastructure and ultimately sustain social safety nets the way FDR achieved, the Green New Deal will crush nations’ abilities to produce for themselves, sustain their people or even maintain global populations at current levels which this author developed in a 2014 lecture entitled “The Imperial Fraud of Entropy” featured below. As sick a fact as this is, depopulation is considered a “utilitarian necessity” for certain oligarchical social engineers attempting to manage humanity as a system from the top.
The real New Deal must be anti-Malthusian as well as anti-neoliberal.
It must be based upon activities that increase human life both quantitatively as well as qualitatively on every level: material, intellectual and spiritual. Long term infrastructure projects funded by low interest/conditionality-free loans made the original New Deal work and it would have ended colonialism if FDR hadn’t died pre-maturely months into his fourth term under conditions which Stalin stated in an interview with FDR’s son Elliot, was the effect of poisoning by “Churchill’s gang”.
These principles worked then, and they continue to work today as China and 135 nations working together under the Belt and Road Initiative framework have demonstrated beautifully.
This growth of humanity as a species made in the image of a Creator is what the Malthusian technocrats hate and fear, and this is why the Putin-Xi commitment to asteroid defense, lunar, mars and asteroid mining and cooperation on space exploration more generally is so necessary to fuel the sort of anti-Malthusian, open system discussion for a genuine Global New Deal which must govern the transition from the age of parasitic globalization and empire to a new Multipolar age of cooperation and creative reason.
A New Monetary System with A New National Bank
A Nation’s Monetary System could be, and should be, this simple…..
A Nation’s money is owned by the citizens of the Nation.
The value of a Nation’s money is determined by the productivity (labor) of the Nation’s citizenry as expressed in the quantity and quality of the goods and services produced by the Nation’s citizenry.
A Nation’s Treasury Department adds money to a Nation’s economy through a National Bank.
A Nation’s Treasury Department subtracts money from a Nation’s economy through tax collection, i.e. Internal Revenue Service.
A National Bank manages the Nation’s money supply.
Loans increase a Nation’s money supply.
Loan repayment and taxes decrease a Nation’s money supply.
Loan interest rates control how quickly a Nation’s money supply will increase.
Tax rates control how quickly a Nation’s money supply will decrease.
A National Bank is owned by a Nation’s citizens and therefore the interest received from loans will never be siphoned off as profits to any private owner.
Only independent sovereign nations can establish a National Bank to manage the Nation’s money.
The National Bank is subordinate to the Nation’s Treasury Department.
The National Bank does not sell ownership rights to the Bank to citizens using stocks or bonds.
The National Bank is forbidden from buying and owning and trading assets, including stocks, bonds, and mortgages, both domestic and foreign.
Only the National Bank is authorized to create money by making loans to citizens and businesses, to Federal Government Agencies, and to State and Local Government Agencies.
National Bank Branches will be located in each Postal District throughout the nation.
National Bank Branches will manage loans:
Issuing, setting interest rates, evaluating applicant’s loan needs and applicant’s capability to repay their loan’s interest and principal.
Monthly Revolving Credit Card:
The higher the monthly credit card limit, the higher the interest rate.
Transportation Vehicle Loan:
The more expensive the vehicle, the higher the interest rate.
Home Mortgage Loan:
The more expensive the home, the higher the interest rate.
The higher the loan amount, the higher the interest rate.
Business Loan for Business Expenses:
The higher the loan amount, the higher the interest rate.
New Business Start-Up Loan:
The higher the loan amount, the higher the interest rate. A maximum loan amount will be determined based upon risk of success or failure of the New Business. New Businesses can seek loans from non-Bank investment lenders.
Federal Government Agencies:
The National Bank will issue loans to Federal Government Agencies that will be repaid from Federal property and sales taxes, and tariffs.
State and Local Governments Agencies:
The National Bank will issue loans to State and Local Government Agencies that will be repaid from State and Local property and sales taxes.
Loans and taxes can only be paid in Bank money.
There shall be no Federal, State, and Local income taxes (personal and business). There shall only be Federal, State, and Local property and sales taxes.
Only the Federal Government can levy tariffs.
Loan interest rates and tax rates are modified to control the money supply, and thereby inflation.
Government agencies contract goods and services from citizens and businesses and other government agencies.
Federal, State and Local Government agencies submit budget requests to their governing elected representatives. Budget requests will either be approved, denied, or modified by the governing elected representatives. Approved budget requests are recorded in a national database that National Bank managers can search to confirm loan applications from Federal, State and Local Government agencies.
Welfare is a no-interest non-repayable loan (gift) to citizens based upon their poverty.
Welfare recipients have to agree to a contract with the National Bank requiring the welfare recipient to change their detrimental and self-destructive lifestyle behaviors and habits, fulfill training goals, and fulfill minimum employment requirements.
The deadly fault of the current system is insistence on keeping intact the very power structure that has caused our current reality. The results of any system are largely determined by its most fundamental aims. If the aims are further concentration of both economic and political power in a tiny oligarchical minority, then the results will approximate those aims. No solutions are possible from the within the system. We must first, in one way or another, take away their power to set systemic goals, followed by redefining the systemic aims to serve We The People. In order to achieve this we must undergo an alchemic transformation from We The Sheeple to We The people. Apparently this is an act proving to be as difficult as turning lead into gold. ;-)