Saturday, May 29, 2010

The Producers and the Thieves

The Producers and the Thieves

This is an oversimplification, as everything is an oversimplification, but in this case it’s not by very much. There are essentially two kinds of people in the world: those who produce, and those who steal. The same applies to political systems.

Albert Jay Nock famously called producing the Economic Means. The thieving he called the Political Means. The Economic Means is based on persuasion; the Political Means on force and fraud.

Alfred North Whitehead, in his book, Adventures of Ideas, had this to say about the difference between persuasion and force: "The creation of the world -- said Plato -- is the victory of persuasion over force...Civilization is the maintenance of social order, by its own inherent persuasiveness as embodying the nobler alternative. The recourse to force, however unavoidable, is a disclosure of the failure of civilization, either in the general society or in a remnant of individuals...

"Now the intercourse between individuals and between social groups takes one of these two forms: force or persuasion. Commerce is the great example of intercourse by way of persuasion. War, slavery, and governmental compulsion exemplify the reign of force."

Sometimes it requires a lot of study and analysis to ferret out those who engage in the Political Means. Let’s use the concept of money, for example.

Money is a means of exchange. Before it was created (and governments had nothing to do with its creation) people had to barter goods. With the creation of money, people exchanged money for goods. People who make things can trade much more easily with other people who make things using money.

Instead of trying to find someone who wanted to exchange the furniture you built for they made clothes they made (what if the person who made the clothes didn’t need any furniture?) you instead gave them money instead for their clothes. Then they used the money to buy what they wanted. The discovery of money, then, is responsible for the creation of advanced civilization.

There should, however, be no more money in a society than things made.

Now we come to some problems. If money supply grows faster than the amount of things made, then theft is taking place. This is what inflation is: too much money chasing too few goods. Inflation is not rising prices; that’s just a symptom. Inflation is an increase in the money supply beyond the goods created.

Inflation, then, is theft. It’s stealing the goods people create.

As Carolina Hartley writes, “The thief creates extraneous dollars and spends them first: at the time when the rest of us expect a dollar to be worth a certain amount. By the time the thief's dollars have been absorbed into the economy, we notice our dollars are buying less. This is inflation. The thief has dipped into our savings and traded with shoddy bills.”

What happens when money supply shrinks compared to things made? The opposite of inflation. Deflation, which is characterized by falling prices. There is too little money chasing too many goods.

Since some goods don’t last, i.e., they are not durable, such as food (which usually has to be sold in a matter of days) bad things happen with deflation, just as they do with inflation. Someone who hoards money can wait until a business is on the verge of bankruptcy, then he can buy it for pennies on the dollar. This is what happened during the Great Depression for those who had money.

There’s the rub: inflation and deflation cannot happen, except in insignificant measures, unless the government gets hold the ability to create money. In other words, when the Political Means gets hold of the ability to create money, it destroys societies through inflation and deflation.

In the United States, the Federal Reserve Bank (which is not federal, has no reserves, and is not a bank) has a monopoly on the creation of fiat (i.e., counterfeit) money. This fact is why we have periods of inflation and deflation, of boom and bust. It’s due to the political manipulation of the money supply.

In fact the Federal Reserve Bank is not a government entity at all, but owned and controlled by international bankers. It is of course unconstitutional.

These international bankers and financiers use the Fed to enrich themselves at the expense of those who work. There are those who believe these banks wish to crush the entire world and return it to poverty, however, this is not true.

If they did so, then there would be no producing class they could live off of. No vampire kills their victims. Parasites always wish to keep their victims alive. However, they have no concern if there is a well-paid middle class or not.

Everyone could be working class, as long as they receive as much money as possible. Hence, their support of Third World immigration into the United States, which further enriches the wealthy and impoverishes the middle-class and lowers them into the working class.

In a nutshell what all of this means is that those who control the money supply – and they are all thieves – steal from those who produce things. They steal through inflation, and they also steal through deflation. They steal through war and they steal through peace. They also steal through the control of “future money,” i.e., credit (and we are still going through that boondoggle).

Even a gold-backed money supply doesn’t necessarily work if the Political Class (and I believe it should be capitalized) controls the gold supply.They can manipulate the price of gold to their advantage: by raising the price of gold, the Political Class exchanges their gold for other people’s money.

Then, if there is a deflation, those who now own the gold have little money. And if they price of gold goes down, those who now own the gold have lost both their money and the value of their gold. They then have to sell their gold at a loss to get some money, unless they can find someone who wants to barter gold for goods. Either way, those who control the money supply generally end up with both the gold and the money, and the average person ends up with very little of either.

The thieves in the Political Class now have the money and the gold to buy everything at a discount during economic collapses. These few reasons explain overwhelmingly why an extreme minority of people are worth billions of dollars (and getting richer) while everyone is getting poorer and poorer.

In other words, the non-producers are parasites, indeed vampires, on the producers, and have used the power of the law to their advantage to enrich themselves at the expense of those who work and produce.

These international bankers and financiers, like the Ferengi of Star Trek, believe peace is good for business, and that war is also good for business. They, in fact, finance not only war, but both sides in the conflict.

What really counts for these international bankers is information. Since all the central banks in the world are connected, information flows between them. This inside information is a huge advantage for the owners of these central banks.
During the years of the gold standard, for example, having a seat on the board of a central bank meant that the insider would know when emergency borrowings rose, signaling the probable start of a bank crisis and stock market crash.

In the case of wars, it was an easy task for a private bank with seats in several different national banks to calculate the deposits and income of the contesting states and the loans they secured to raise their armies, thus allowing the privileged few to bet on the probable winner. They could even support the probable loser, as long as profits were to be made.

These reasons are why bankers supported both Russia and Germany during World War II. They made profits from the deaths of millions of people. It does appeal St. Paul was right when he wrote, “The lust [not love] for money is the root of all evil.”
International finance and central banks, which produce nothing and only steal, are an octopus with tentacles throughout the entire world.

History is a continuous battle between the producers and the non-producers, between those who create and those who steal. Between the Economic Means and the Political Means. Ultimately, between freedom and slavery.

The only way out of this mess is to remove the control of money and gold from the Political Class. That is, close down the Federal Reserve Bank, force Congress to manage money supply as described in the Constitution, and vote corrupt, thieving and incompetent politicians out of office.

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