News & Analysis
Mr. Hugh Smith, Please Don't Forget About Central Banking!
As the Status Quo unravels/devolves, the propaganda becomes less and less persuasive as an account of how the world actually works. Alternative explanations suddenly "make sense." For me, the neo-colonial "plantation" model of financial/political exploitation and oppression neatly explains how America functions in the real world: debt-serfs, a Technocratic Caste of enforcers/managers, etc., just like on a colonial plantation ruled by a distant, cloaked, unreachable Elite. Others have different models, but the key feature is that each alternative explanation disrupts and subverts the Status Quo narrative. This process cannot be co-opted or stopped. The only question left to be answered going forward is how much pain and suffering the Status Quo Power Elites and their armies of technocrat toadies, lackeys and prostitutes will impose on the nation before their grip on power is finally relinquished ... I favor direct, perfectly legal action by individuals and households to divest themselves of servitude/complicity in the Status Quo. – Charles Hugh Smith
Dominant Social Theme: There are many things people can do to protest the way things are ...
Free-Market Analysis: Over at AmpedStatus, Charles Hugh Smith has some words of wisdom for the burgeoning protest movement Occupy Wall Street. He has some specific advice for protestors on how to opt out of the system and since it is a long article we will boil it down below, as there is much wisdom in it.
And yet ... we have asked for over a month now why Occupy Wall Street still is not focused on ending central banking? (Of course, we understand that is a STATED goal, but not one that it seems to us is receiving enough real-time attention by the movement and certainly not by the mainstream media covering it!)
We admit we're somewhat monomaniacal on the subject. But no matter how we look at it, ending central banking often seems to get "lost in the shuffle." There are so many prescriptions for fighting back against a system that is increasingly exploitative and aggressive. But the foundational issue is central banking and here criticism still seems to lag – even on a website as hard-hitting, committed and progressive as AmpedStatus.
Maybe part of the problem is that there are so many OTHER actions to take. One can campaign to take physical delivery of silver to help end Wall Street's precious metals manipulation. Occupy Wall Street itself seems focused on taking money out of politics and removing corporate influence in government.
Other solutions suggested by such individuals as Matt Taibbi include additional taxation that would damp down Wall Street speculation or the idea from Adbuster magazine's founder of a one-percent tax on all securities trades. Many Occupy Wall Street protestors want a millioinaire's tax.
Mr. Charles Hugh Smith is quite practical and eloquent in his suggestions, so maybe we don't mind so much that he doesn't deal with central banking. Here's more:
There are other direct actions we can take in the privacy of our own lives and homes. The basic idea is simple: stop being complicit in an exploitative, oppressive Status Quo, and stop passively accepting the governance of prostitutes and pimps and the lackeys they appoint (Geithner, Bernanke, et al.) It is perfectly legal (so far) to be debt-free, to own silver and to vote against the two criminal gangs that run Whoretown (Washington, D.C.)
Demonstrating is a good way to join in common cause and to raise awareness within the passive public, but being debt-free and thus a free citizen is even more powerful. Removing your debt and interest from Wall Street and the other systemically dangerous institutions (SDIs) will cripple their power in a way that toothless political reforms cannot.
Becoming a free, independent citizen won't solve all our nation's problems, but it will certainly enable solutions that are now impossible in the current neo-feudal, neo-colonial plantation run by Wall Street and Washington.
Charles Hugh Smith's new book is An Unconventional Guide to Investing in Troubled Times. It certainly sounds as if it has many interesting ideas on how people can become more self-sufficient in a time of great economic stress. Even without having read it, we recommend it.
But here at DB, we always return to the bottom line issue, which is that money stuff itself is entirely fungible in the modern age and controlled by a handful of individuals, great central banking families and their associates and enablers.
There are so many suggestions. Drop out of the system. Raise taxes on those who benefit from the current system. Pressure the Democratic Party to remove money from politics. Protest against corporate money and influence. Indict Wall Street and put everyone in jail.
Conclusion: In this special Friday issue, focused relentlessly on central banking issues, we offer the following modest proposal: How about continuing an aggressive campaign to end the Fed via the voluntary (and legal) use of alternative money, and through peaceful but aggressive non-violent means of protest and political activity? And while we're at it, target the BIS as well.
Posted by seanmPWH on 10/23/11 04:10 AM
I see people are talking here of a battle between the likes of Bill Still and Anthony Wile. I find this interesting because I am planning to do a YouTube commentary on this topic. Why argue? If we get the division of the USA into 50 separate sovereigns then we can actually do the experiment. There should be some fiat systems and some gold systems and we can see which preforms better. This idea of trying to get every body on the same page is coming to an end, the coming paradigm will be many small self-determined nations, no more one-size-fits-all control freak systems please.
Reply from The Daily Bell
You have a good idea. But please address in your commentary HOW THOSE WHO RUN A PUBLIC CENTRAL WILL KNOW HOW MUCH MONEY TO PRINT.
For us, this is this crux question.
Central bankers currently don't know how much money to print. PUBLIC central banks in China and India are in terrible trouble with price inflation. How does making public a quasi-private central bank like the Federal Reserve solve the central issue. HOW MUCH MONEY IS ENOUGH?
Posted by Hoss on 10/22/11 01:04 AM
A vehement "No Thanks" from me to any proposal for raw Zimbabwe-style inflation by government.
It's never worked before, and aside from the pernicious debt, it carries all the underlying evil of the system we have now, except it substitutes government corruption for secret banking corruption. At least the bankers have something to lose. The government has armed forces and guns.
Real money is the only way.
Posted by RR on 10/21/11 03:01 PM
even though the mechanism they cite is only partially accurate ("interest rates"/ "money as debt") What does this mean?
Posted by Kelly on 10/21/11 01:35 PM
Opting out of the system may be difficult. My recent adventure into auto repair limbo suggests that designed destruction of all appliances that support a 'life style' also help maintain a debt level. Last night I listened to the audio book "Candide" (thank you thepiratebaydotorg) and was forcefully reminded that human suffering may be a constant. The book slams you in the face with the philosophy that 'this is the best of all possible worlds' in not so subtle sarcasm. Only a philosopher can hold to this line of thinking while in the middle of extreme suffering.
Yet, here I am, enjoying the trips to the parts stores, the mechanic and watching the national debt drama unfold. In the second line of the article we are invited to see 'how the world actually works' and, therefore, into an adventure in philosophy. Candide also explores what happened to dethroned monarchs and despots just as we see prosecuted CEOs. Where else in the universe can I get such great adventure? This must, of course, be the !best of all possible worlds!!
PS: Thanks DB for the past reference to Douglas Reed. It was a great read (and long).
In return, the trick of reading the Internal Revenue Code was well explained by Peter Hendrickson (now in prison) whose work can be found here:
Click to view link
Get CtC for Free (and send it to everyone): See Click to view link
Posted by laceja on 10/21/11 12:47 PM
Yes, Mr. Hugh forgets that tiny little fact, if we stop borrowing, the government and the Fed will simply borrow it on our behalf. Until the Fed (and all central banks) are eliminated, the people will be saddled with as much debt as the PE see fit.
Posted by haha on 10/21/11 12:34 PM
You guys focus too much on "central banking", but people are not listening.
Maybe you need to dumb down the argument to its basics?
1. fiat money is just an excuse for stealing wealth via counterfeiting ("inflation tax")
2. legal tender laws legally prohibit competition to the fiat money scam, because competition might uncover the scam
All your other arguments like "Austrian business cycle theory", "price fixing of interest rates", "interest rates as prices", "capital misallocation" are way too complicated for newbie folks to comprehend - AND they are not as impactful because it gives the elites an easy out. The elites can proclaim innocence and say, "Oh we were mistaken. It was an accident. Sorry. Please forgive us for not having understand this really intricate and complicated argument."
It will be *much harder* for the elites to proclaim innocence when you accuse them of counterfeiting though - no complex theories getting in the way. I think this is the reason why the Bill Still type people find it easy to gain purchase for their arguments - they are accusing the elites of stealing wealth, even though the mechanism they cite is only partially accurate ("interest rates"/ "money as debt")
Reply from The Daily Bell
Perhaps so ... reality is difficult. Education is best though not very easy ... Anyway, we are trying to "simplify" by focusing on central banking. And we do call it counterfeiting!
Posted by budwood on 10/21/11 12:31 PM
In reading a book that was published in 1985 (The Unseen Hand), it sounds as if is deja vu all over again:
"Young people were being used (in the 1968 Hippie/SDS protests) by the establishment to condition people to radical change". In fact, one of the primary spokespersons wrote, "Revolution is profitable. So capitalists try to sell it"!
Evidently, after fifty years, the protesters in the OWS are being used as their grandparents were used.
Posted by RR on 10/21/11 11:32 AM
Ms Ellen Brown's vs Daily Bell's solutions is a critical debate. The true answer may lie somewhere in between - first a transition to Public Banking to pay off all the debts in about one year and then to a monetary competition, gold and silver.
Click to view link
Posted by Aldo on 10/21/11 09:59 AM
Thank you DB for your efforts and focus.
The concept of central banking has not been well-understood, in general. A result of relentless, deliberate obfuscation.
But awareness is growing, through efforts of Ron Paul, Bill Still, Ellen Brown, Dennis Kucinich and others.
Also see Click to view link
Reply from The Daily Bell
Ha, Aldo, thank you, too. But as much as we admire Ms. Ellen Brown, we are not sure she delivers much enlightenment on the "solutions" side, though doubtless she would say the same of us! She believes in fiat paper and public central banking; we believe in monetary competition, gold and silver. Likewise, Mr. Kucinich despite his obvious good heart. Dr. Paul is the man for us!