A general awakening is taking place

December 7, 2013

Unless some great human tragedy should befall Western society shortly, the monetary system must at some point come into focus.

Even though few of the people that might have a say in what can be done have made the leap to actually and unequivocally admit the inevitable arithmetical reality afflicting our economies, the main stream press is indeed increasingly reporting on the tangible ramifications of this particular variety of monetary system.

Starting with this bit of research:


Three systems theorists at the Swiss Federal Institute of Technology in Zurich have taken a database listing 37 million companies and investors worldwide and analyzed all 43,060 transnational corporations and share ownerships linking them. They built a model of who owns what and what their revenues are and mapped the whole edifice of economic power. They discovered that global corporate control has a distinct bow-tie shape, with a dominant core of 147 firms radiating out from the middle. Each of these 147 own interlocking stakes of one another and together they control 40% of the wealth in the network. A total of 737 control 80% of it all. The top 20 are at the bottom of the post. This is, say the paper’s authors, the first map of the structure of global corporate control.

If one understands the arithmetical reality of our monetary system, then one must inherently and necessarily understand that the outcome can only be the concentration of profits thus the concentration of ownership.

The key aspects of this monetary system that make this the inevitable conclusion are:

- Unilateral and arbitrary imposition by force of this monetary system to the exclusion of any other
– Privilege of money and credit creation is bestowed on an entity that produces nothing but demands interest be paid to it
– Money and credit enter the wider economy through exclusive gates rather than entering simultaneously at all levels of the economy
– Constant and aggressive creation of money & credit results in steady debasement thereby awarding asymmetrical purchasing power advantage to the guardians of the gates
– The diminishing marginal efficiency of constant monetary & credit creation ensure that ever greater amounts of money & credit must be created – go to step 3, rinse and repeat

Once this dynamic is understood, the inescapable conclusion must be that, regardless the health of the economy, profit will concentrate towards the top of the pyramid thus ownership of productive capital will too. Profit concentrates in the hands of those entities that are closest to the source of monetary & credit creation.

The following too is more evidence of this inevitable reality:


Ten mega corporations control the output of almost everything you buy; from household products to pet food to jeans. According to this chart via Reddit, called “The Illusion of Choice,” these corporations create a chain that begins at one of 10 super companies. You’ve heard of the biggest names, but it’s amazing to see what these giants own or influence.

And of course, due to the same dynamic, the main stream press is fully captured too.

One more graph:


If you understand the monetary dynamic and if you understand that this monetary system has been imposed without debate nor indeed vote, then clearly the only other conclusion that can be inferred is that there must absolutely be an entity that has deemed it useful for this to be so.

If you understand the above, then you should also begin to understand why in a system predicated on electoral politics and regardless the persuasion, economic policy will always and everywhere result in increased deficit spending and expanding sovereign debt till the point where ideologies that were once at opposing conceptual spectrums will inevitably converge.

A bon entendeur, salut!

When Something Good Works Against Personal Freedom (repost)

July 15, 2013

First posted in October 2010

Some of you may know I recently married and that my wife Rula is expecting our first child. As we pre-plan our child’s early life, one of the things we came across was the possibility of saving and storing the baby’s umbilical cord so that he/she may have access to his/her own stem cells if and when needed in the future.

We live in Jordan, in the Middle East. When Rula first mentioned the possibility of saving and storing the baby’s cord, I thought that whatever company would do that would store the cord in the same country where the baby was born or, at any rate, in the country of nationality of the baby. The reason I thought that, is due to the controversy that surrounds all things DNA, stem cells and biological identity. As things turn out, the companies that operate in Jordan in fact store the tissue in the UK. In fact, there are a number of companies that are licensed to carry out this type of work globally and it seems that China is at the forefront of storage and use of stem cells. However, China not being recognized neither by the FDA in the USA nor the European body (which name now escapes me) nor the UK’s Human Tissue Authority, their work is not included in worldwide statistics.

Interestingly, we are told that in the early stages of this activity in the UK, companies were being licensed by a body other than the Human Tissue Authority. But eventually, government questioned the relevance of this private body issuing licenses for the collection and storage of human tissue and set up the HTA as a government agency.

At the individual level, as parents, both Rula and myself are naturally naturally inclined to do something that improves the chances of survival of our child. If saving the kids’ cord may help him/her one day fight some lethal disease then what’s a few thousand Dollars for peace of mind and for our child’s survival?…

The long and the short of the story is that Rula and I will do this. We do it willingly because it is a good thing.

Nonetheless, I cannot but be torn by my awareness that I am willingly giving up a significant portion of my child’s freedom… without my child’s consent.

Readers of this blog know I maintain our economic/social model evolves according to a logic dictated by two overarching dynamics: the first is the choice of monetary system and the second the choice of political system. As you by now know, though symbiotic, these two dynamics do not affect our lives equally the monetary system being the ultimate driver whereas the political system is subordinate thus is the proximate driver of all human dynamics. Moreover, despite the fact that the monetary system is the ultimate driver, the choice of system is not subject to society for ratification. In other words; governments, particularly Western governments, ergo governments of open democratic societies, retain the exclusive and arbitrary right to impose the monetary system.

Throughout the Western world, all be it at different times, our respective governments have imposed a debt based fiat monetary system upon society. Though not necessarily destructive, the political process ensures that debt based money always and everywhere will end in a catastrophic collapse. The only variable is time.

The reason is that debt based fiat money is predicated on inflation and inflation is a dynamic that conforms to the laws of diminishing marginal utility. This means that you progressively need more inflation in order to obtain the same result. This is not opinion. It is a mathematical truism.

What is relevant here, is that as the debt based fiat monetary logic evolves and as inflation loses traction over time, the only way more inflation can be brought to bear is if government progressively becomes more involved in society and the economy.

Thus as the effect of inflation inevitably wanes, the end of a debt based fiat monetary system is characterized by big government. But big government is inherently and by necessity intrusive thus ever more statist thus ever less democratic.

This is nothing new. It has happened before so this should not be and is not a surprise to anyone that can grasp the very simple logic of debt based fiat money.

At a time when government is clearly, blatantly and overtly flouting the black letter of the law for the ostensible good of “the system”, how much more proof do you want to realize that we are now well into dictatorship territory? How about a candid admission of manipulation at the highest level?



If you don’t find the above worrying at several levels, how about this then:

“All this is a reminder that the most informative element of any spy agency’s website is its Kiddie Korner, where spycraft meets the schoolyard for an awkward, barely appropriate encounter.“


Recruiting children to spy on your neighbor. That’s what the champion of freedom and open society has come to.

So if you understand the dynamics brought about by debt based fiat money, then the fact that today we are effectively living under a developing dictatorship should not be a surprise. We may not have reached the acute stage yet but the mathematical character of the monetary system ensures an accelerating dynamic so that events will follow at a quickening pace.

Back to the point of this post: my child’s biological identity.

Today, “security” is everything and everywhere. Our lives have been turned upside-down and inside-out by threats real and perceived and often by threats that are contrived and carried out by a myriad anonymous “security” agencies that have no overall supervision from any institution civic, military or government it may be. Personal freedoms are being curtailed at an increasing rate, youth organizations are being militarized, teenagers are being encouraged to learn the craft of spying and identification data is being forcibly collected and stored about individuals before they are even suspected of doing anything suspicious.

This is what happened to innocent till proven guilty.

Today, we are all guilty till proven innocent.

The implications are profound.

Once upon a time the “old country” was a land where people could only do what was allowed by law so that America, the land where people could do anything provided it was not forbidden by the law, flourished. The difference in the two approaches ensured that in upholding the presumed inherent goodness of man, America allowed people to imagine and create things that did not exist whereas in the old country, government would give guidelines in what to imagine and what to create.

To be sure, both approaches created some degree of wealth and somehow advanced society and both approaches can be deemed to have succeeded depending on what the parameters for success are. Nonetheless, the personal freedom approach was much more prevalent in America than in Europe hence no doubt contributing in a significant manner in turning the USA in the global hegemon.

But I digress. I am now about to give up what could very well turn out to be a significant portion of my unborn child’s identity and place it in the hands of government. Sure the company that will collect the cord claims that nobody but the parents have access to the tissue but in light of Western governments increasing and proven inclination to hold themselves above the law, I know the genetic identity of my child will wind-up on a government database. From there, government through any of the myriad agencies under its presumed control will have significant latitude in using and misusing this information. Some of the possibilities have been illustrated by authors young and new. Some their work was deemed fiction or science fiction when it was first published. But today, we see the long dark hand of government stretching over society ostensibly to provide protection; protection that can only be offered by curtailing your personal freedoms to save you from yourself.

In recent years a minor movie I thought was deserving of attention, if not recognition, was Gattaca.

Though dramatized and no doubt “a bit out there” for the time it was shown, today government has come a long way to achieving just that objective. You no doubt heard about Echelon. Echelon has been running for a good many years and it has collected phenomenal amounts of information on all and sundry globally. Most of the information collected though, pertains to faceless or even nameless individuals. Now think about this. Since the events of 2001, large numbers of people worldwide have their finger prints taken at certain airports regardless of whether they are staying in that particular country or whether they are just transiting. Innocuous enough right? It is no different than handing over your passport right? Enter biological information. Within a few years, government will not only have full access to your name and know exactly what you are made of and what illness you may suffer from, but it will also have a comprehensive data-bank of whom you’ve spoken to, what documents you have ever requested and exchanged, with whom and why, where you’ve been, whom you’ve seen, at what time and where…

The Berlin wall only came down twenty years ago. That was the point at which “free” society thought it had overcome by wielding truth, justice and personal freedoms.

We are fully back to square one but this time it is global.

That is what is occupying my mind these days.

When Tyrants Grasp At Straws…

June 28, 2013

Mr. Olson will probably be charged. Let’s see what they will actually slap him with. The rhetoric is down right scary of course and it belies panic.

My take is that the verdict will revolve around how solid a grip the banks have on social mood. The weaker they feel their grip is, the tougher the sentence.


As a corollary to the above -

I began writing publicly some 8 years ago. The reason I did so is because I was beginning to get to grips with how the monetary system works and, in particular, how banks work. The thing that baffled me the most at the time was how oblivious most banking, finance and economy “professionals” were to the inherently and arithmetically predatory nature of the system.

Eight years and countless real life examples later, I realize nothing has changed. This shit storm will be taken to its ultimate conclusion because of the handful of people that know what is going on, fewer still are willing to do anything about it.

It Is The Monetary System…

June 5, 2013

Matt Taibbi and PIMCO’s Bill Gross dance around the conclusion from different perspectives.

In “Why Didn’t The SEC Catch Madoff? It Might Have Been Policy Not To” Matt Taibbi highlights the aberrant succession of events that was allowed to happen despite the warnings from industry insiders and the sheer amount of operational red flags Madoff had raised.

In “Wounded Heart” Bill Gross reflects on the sheer aberration of Fed’s actions and finds that it is actually part of the problem rather than the solution.

Other luminaries of finance have also danced around the issue.

The truth is of course, that once this particular monetary system is imposed, there can be no other outcome than what is being noticed by Msrs. Taibbi and Gross.

As an entity successfully imposes by coercion on society one particular variety of money and, simultaneously replaces the notion of capital with debt, the outcome is dialed in. In time, not only does profit gradually drain from society to concentrate in the finance industry but savings are depleted as government must arithmetically become the largest actor in the economy. This dynamic is driven by the diminishing marginal efficiency of debt which devalues the currency. As the currency loses traction, government must necessarily intervene in the economy at ever greater and deeper degrees to compensate the loss of traction.

On the road to becoming the largest actor in the economy, government has a vested interest in initially tolerating certain illicit behavior. But as the efficiency of debt is eroded further, government needs to progressively disregard egregious behavior till it must necessarily solicit it and, finally, collaborate in criminal behavior (i.e. MFGlobal and Cyprus).

It is all a direct ramification of allowing this particular monetary system to be imposed. A monetary system that was never voted upon or that was otherwise never submitted to the people to accept or reject.

And for the WTF file of today… I give you…

April 29, 2013

And for the WTF file of today… I give you…

I have no inspiration to write much any more. Everything that needs to be said has been said. 

I grant you that going over some of the posts of the past five years highlights the need to write clarification and, in many cases, amendment or errata notes on many of my posts. My knowledge has evolved considerably since 2005. Other than that however, there is not much more I can write about.

At this stage, I suppose my time is best spent pointing out factual, if anecdotal, evidence of what is being foisted upon the public in the West – and this article should be as clear as any writing on any wall writ large.

Western governments have now adopted a blatant policy of intimidation and terror in order to make the masses pliable. This warning to Philadelphia residents has all the hallmarks of fascist totalitarian propaganda aimed at fostering insecurity and fear in a bid to ensure that when the government says “jump”, the public will ask “how high?” rather than asking “Why”.

A conflict of global proportions is around the corner and, in short order, Western citizens will be sent to a front somewhere.


They Are Coming For You

March 20, 2013

The debacle in Cyprus seems to have awaken some to the reality of the concentration of power in the hands of the European Union’s appartchiks.

What is still missing in the outpouring of outrage at popular level and, more disconcertingly, in the main stream press is the fact that the suspension of laws protecting private property has a precedent; a very recent and stunningly blatant precedent.

In 2011 MFGlobal filed for bankruptcy after $1.3Billion (with a B) in deposited funds had been pilfered from private accounts. In normal times this would have been an open-and-shut case as the regulators and sundry insurance bodies along with the department of justice would have stepped in to reimburse the losses and prosecute the company’s management. What actually happened is that the regulators as well as the DOJ did not uphold the law opting instead to hang the rightful owners of the funds out to dry; and mind you we are talking here of some large investors with a certain degree of clout (but obviously not enough of it to be able to recover their funds).

The supine passivity of the regulators was then confirmed  when Peregrine filed for bankruptcy too.

In hindsight, we can see that these two instances were merely trial balloons paving the way for a strategy to be rolled out at national level.

Today it is Cyprus’ turn. Tomorrow it will be anyone from France to Portugal via Spain and Ireland.

Never forget that evil triumphs when good people remain silent.

First they came for the communists,
and I didn’t speak out because I wasn’t a communist.

Then they came for the socialists,
and I didn’t speak out because I wasn’t a socialist.

Then they came for the trade unionists,
and I didn’t speak out because I wasn’t a trade unionist.

Then they came for me,
and there was no one left to speak for me.


A conflict of global proportions is around the corner and hapless Westerners will be packed off to the front as cannon fodder to ostensibly protect our way of life… such as it is…

Nothing new to readers of these pages:


Funny Irish People & The Pope: Ex-Benedict

February 14, 2013

Hat tip The Pink Agendist

Funny Irish People & The Pope: Ex-Bendict.

A good dose of creative and lateral thinking. Just what the doctor ordered.

The Berlin Wall

February 10, 2013

I went to a fun quiz night last Friday and one of the questions asked was: “When did the Berlin wall come down?”

As is well documented, the Berlin wall came down on the 9th of November 1989. What is less documented is that it only came down to move West


“A European Union report has urged tight press regulation and demanded that Brussels officials are given control of national media supervisors with new powers to enforce fines or the sacking of journalists.”


Capitalism? Free Markets? Freedom To Trade?

January 29, 2013

Via Zerohedge.

Just the latest example of the absurdity brought about by this monetary system that cannot contemplate a diminishing cost of living.

Fractional Reserve Banking only allows expanding credit markets. As credit expansion slows or, Ye Gods!, stalls, government must necessarily and inevitably intervene. Government intervenes with subsidies, with protection of industries, with the granting of social benefits (student loans are a prime example) and with the imposition of taxes. Whatever form it takes, government intervention is aimed at increasing costs thus increasing the cost of living. Initially, intervention is cloaked in things like social justice and security for the less fortunate. But as the expansion of credit markets no longer brings about the nominal increase in asset values as it used to, government must necessarily intervene at the micro level at increasing degrees.

Till one day, the state intervenes to…



The Icelandic Solution

January 27, 2013

President Olafur Ragnar Grimsson tells the simple truth on how to get out of this jam…

Since we are at it, one of the things I suggest we should also have the courage to take a look at is how a country that was on its knees militarily, industrially, economically and agriculturally was able, in six years, to not only rebuild, re-industrialize and rearm, but jump at the leading edge of technological innovation. We should have the courage to take a dispassionate look at how Hitler was able to do what he did in six years. Where did the money come from at a time when Germany was under embargo and was forbidden to trade liberally with partners?

My view is that Iceland and Lithuania today like Germany before them, successfully broke out of the central bank imposed debt cycle thereby boosting real internal growth by reinvesting profit within their economy rather than leaking it in the form of interest to a third party.



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