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Neither a Borrower Nor a Lender Be

There is a gentlemen’s agreement among economists and politicians not to speak of a certain subject — at least not if they value their careers.  That subject is debt-free currency — the alternative to privatized, central bank currencies which are really coupons of debt.

Doesn’t it seem odd that national governments, all of which have the inherent right to coin money, instead go around borrowing money — and thus putting their people deeply in debt to globalist elites?  One of the few American politicians to ask that question, Dennis Kucinich, has been rewarded by getting redistricted out of office.

Kucinich, by the way, is also one of the three politicians to have questioned the official 9/11 story, the central lie of our times.  All three, including Alan Grayson and Cynthia McKinney, have been successfully dislodged from that den of traitors known as Congress.  If you’re wondering what 9/11 has to do with money and globalist elites you need to be paying more attention.  For starters you can add the true-left website Global Research to your RSS feeds.

There are essentially three different types of currency; three systems with very distinct characteristics and economic effects.

  1. Commodity currency (usually gold, or gold certificates)
  2. Debt-based currency (coupons issued by a central bank such as the Federal Reserve and loaned into circulation)
  3. Debt-free currency (money issued by a sovereign state and spent, not loaned, into circulation)

Commodity currency is the siren song of Libertarians and the far right.  They claim that money not backed by gold is “worthless.”  This position reflects either juvenile thinking (as to the far-right rabble) or cynicism (as to the elites).  Gold has always been the preferred currency of elitists; its scarcity makes gold currency a natural instrument for financial oppression.  The gold standard, for example, enabled the Great Depression to be inflicted on the masses — giving rise to the Third Reich and very nearly global fascism.  But gold, as a commodity, has little utility beyond adornment — so its much vaunted “intrinsic value” is dubious at best.

The other two currency types are fiat monies; so-named because money is created by decree rather than by accumulation of gold.  A system of fiat money can be bad or good, depending first of all on whether it is debt-based or debt-free.  Gold bugs such as Ron Paul throw around the term “fiat money” as a disparagement, giving their followers the misleading impression that “fiat” is always a bad thing.  Ron Paul is right about the Federal Reserve being a detrimental institution, but it’s not because they issue fiat money.  The real reason is that the Fed issues debt-based money — making them a central player in our unsustainable economy of ever-increasing debt.

The entire western world has been captured in the web of central banking — this scheme of currency being issued not by national governments but by separate entities, central banks, integrated with the supranational banking industry.  When a central bank decides to issue (create) money, it doesn’t spend that money but rather loans it out — either to governments (through purchase of bonds) or other banks.  The U.S. dollar, in this light, is not money but rather a coupon of debt; as it inevitably represents debt owed by someone to the banking system.  That kind of elemental debt, coupled with interest charges, is by nature unrepayable except through incurring more debt.  It’s an abuse of language to call such a thing “money.”

This perversion of the monetary system has produced the U.S. “debt ceiling crisis” as well as the European “sovereign debt crisis.”  Such crises give impetus to neoliberal “austerity” measures, which translate as drastic cuts in standard of living (except for the elite, of course).  And there’s the core of the issue — the eternal intrigue of elites sabotaging the masses through covert financial and political manipulation.

A proper currency is neither chained by gold nor privatized by the banking elite.  Money is rightfully issued by each sovereign state as a public asset, used to pay the operating expenses of the state.  This imbues fiat money with intrinsic value: the value of those goods and services for which it was initially exchanged.  Thus fiat currency could be debt-free and possess a more solid intrinsic value than that of some glittery metal.

Now the question arises:  How does one control inflation under a debt-free system?  And the answer is that controlling inflation is the proper role of taxes.  With debt-free currency, since the state can issue whatever money it needs, taxation is only necessary as a means to soak up any excess money supply.  When inflation is low, tax rates would automatically go down.  If inflation should spike, tax rates must immediately rise according to a pre-established scientific formula.  But so long as the money being created is not wasted, its intrinsic value poses an effective barrier to inflation.

To the ruling elite, the power of debt-free money is a Holy Grail to be kept under tightest security.  It is a can of economic “whoop-ass” which they only allow to be opened at certain times and places.  In America, the Grail was once handed to Abraham Lincoln; his debt-free “greenbacks” enabled the North to win the Civil War.  More recently the western elite passed the Grail to their fascist prodigy Adolf Hitler; debt-free currency allowed him to transform Germany from an economic basket case into a militant superpower.   Had it not been for the heroic Red Army, this maneuver would have enslaved the entire world under fascism — the ultimate dream for which the elite are still feverishly striving.

Let us put this great power, the power of sovereignty, to use for the people — rather than having it stashed away as a secret weapon of the elite.  Let us also reject the deadly allure of a debt-based economy.  Neither a borrower nor a lender be.

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