It may take a few decades and a few more crises, but I believe that politicians and economists will eventually realise that to welcome greed throughout the financial system is akin to welcoming foxes into chicken coops. Financial greed – seen in the desire for unwarranted high returns from investments in stocks, bonds or real estate – will be seen for what it really is: an impediment to economic progress. That thought is at least as revolutionary as the idea that Europe should be peaceful. It will lead decision-makers to decide the current system is unfit for purpose. A critical look at every aspect of finance, from debts with maturities and fixed interest rates to supposedly independent central banks, will show that many instruments promise more certainty than is possible in an uncertain world. Others are too generous to financial intermediaries or are simply not suited for modern economies. Once the old system appears to be obviously outdated, new ways will be found. Perhaps debt and its alluring promises will simply disappear, and be replaced by financial instruments which are like shares, basically permanent and always subject to losses in value. Maybe governments will stop borrowing from financial markets; they could simply print money directly to pay for deficit spending. And economic authorities in search of stability might find more potent tools than policy interest rates and crude bank regulation. Improbable? Yes, but no more so than what actually happened in the last 50 years. – Reuters Opinion/ Edward Hades
Dominant Social Theme: The world will be a better place without interest or independent central banks.
Free-Market Analysis: This excerpt from an opinion piece posted at Reuters entitled "Ethical economy: A tale of two half-centuries" was written by Edward Hades but it could have been written by any one of a number of people functioning within the power elite orbit.
It is exactly what Anthony Wile criticized on Wednesday in his well-received column on National Socialist economics. When we examine Hades's verbiage closely we come up with all sorts of code words.
Let's break it down a little. Hades wants to do away with "greed" in order to create an "ethical" financial system. He wants decision makers to take a critical look at such issues as debt and independent central banks.
He wants "debt and its alluring promises to disappear." He wants government to print money directly to pay for deficit spending.
All of this is directly taken from tracts such as Ellen Brown's Web of Debt, in our view. Ms. Brown has made a terrific impact with her book and many people are taking up her ideas.
The only problem is that they don't understand these ideas were tried in Germany especially by Adolf Hitler. It was Hitler's usage of them that supposedly provided Germany with its "economic miracle."
That's the story line, anyway, this "economic miracle"… but we don't agree. We don't think that in the long term command-and-control economies do very well or are very happy places for people to live in.
We'd rather see a free-market approach adopted than a National Socialist one.
The basic idea behind National Socialist economics is that "the people" should own fiat money central banking and print as much as necessary to ensure a satisfactory economy. The money should be issued into the economy debt free, perhaps by government controlled banks or by the government itself. Some variants of this sort of approach call for money to be distributed freely to all who need it via a specific formula.
Now, if people want to adopt such schemes on their own, well … okay. But we start to disagree when these small schemes threaten to take over nation-states. Then citizens don't have any choice. They have to live within the boundaries of these systems or leave the country.
We'd rather see a variety of competing currencies and we believe within the context of monetary competition gold and silver would find their place, as they have throughout history.
But from our point of view, perhaps an idiosyncratic one, the power elite of the modern era have decided that National Socialist economics is a preferred alternative.
We believe that's where the West is headed, one way or another. Books on the subject are being churned out. Websites are created that fiercely attack free-market money and libertarianism in general. More and more editorialists like Hades are endorsing the concept of German, pre-war economics.
Reuters, of course, is a power elite mouthpiece but even if it weren't we wouldn't be surprised to find this editorial at this particular time. The power elite knows that the current economic system cannot stand. It was not meant to stand but was meant to collapse and pave the way for world government, or so it seems.
So the elites need something to put into its place. National Socialist economics fits the bill because it is run by the government. So long as the government has the power, the elites are satisfied. The power elite first put such economics in place during Hitler's regime. That was a kind of "dry run," in our view.
That's because the elites understand that government is infinitely controllable. The mechanism utilized is called mercantilism. This is also why Hades mentions that he hopes "independent" central banks are removed.
Of course, there is no such thing as an independent central bank. The Federal Reserve is called independent but its mechanisms are inextricably combined with the US government itself.
The Fed USES the US government for purposes of credibility and both the Treasury and Congress are part of the Fed mechanism. When Hades calls banks like the Fed "independent" what he is doing is setting a rhetorical precedent for a later date. On that date, he will call for a non-independent central bank. He will editorialize about the supremacy of a truly "public" central bank, as others have done.
Examples of public central banks include China, Brazil and India. In our view, they are no better than so-called "independent" central banks. The antidote to the current horrific, globalized central banking economy is not to put politicians in charge but to tear it down and start over.
Get rid of central banking to begin with. Every kind. Let people create their own kinds of money, debt-free or otherwise. Let silver and gold circulate untrammeled. Let people live in smaller societies where they have some personal impact and control. Get rid of regulation. Let people resolve their difficulties as much as possible face-to-face.
These are just some of the ways that the world can be made more livable. But introducing National Socialism on a global scale is not one of them.
It may be what the elites have in mind but we don't have to endorse it because it "sounds good." It didn't work when it was tried. It won't work in the future. Command-and-control schemes never do.