If You Want to Limit the Power of the Super-Wealthy, Stop Using their Money

| |

1000bill

The only way to reverse rising inequality and break the power of the super-wealthy Financial Aristocracy is to stop using their central-bank issued currencies.

Many well-meaning people want to limit the wealth and power of the super-wealthy, i.e. the Financial Aristocracy/Oligarchy. (For more on the modern class structure, please see America’s Nine Classes: The New Class Hierarchy.)

Reformers have suggested everything from a global tax on wealth (Piketty) to publicly owned banks to limiting the pay to play circus of campaign contributions.

None of these will change the power structure or limit the super-wealthy. as I explained last week, If We Don’t Change the Way Money Is Created and Distributed, We Change Nothing. The super-wealthy will either move their capital elsewhere, derail the reforms, or have their political lackeys water the reforms down to the point they are nothing but a politically useful illusion of “change.”

The only way to systemically limit the power and wealth of the Financial Aristocracy is to stop using their money, i.e. central-bank issued state currencies. Central-bank/state issued money is borrowed into existence and made available to financiers and the Financial Aristocracy to buy up productive assets.

Central states borrow some of this money to fund their bread and circuses welfare programs that keep the restive underclasses distracted, insecure and dependent on the state, but none of this actually changes the ownership or capital structure of the economy; it just makes the masses complicit in the status quo.

Though the vast majority of us have little opportunity to use money that isn’t issued by central banks, that’s changing. Bitcoin is the most well-known example of a non-state, non-central bank form of global money, but there are many more in use or in development.

The state/central bank monopoly on issuing and distributing money is (along with war-making and coercion) the state’s most jealously guarded monopoly. The state– which includes the largely invisible Deep State, the central bank (Federal Reserve) and the visible machinery of government–retains the sole right is issue money in whatever sums it chooses and to whom it chooses because the jig is up if the state loses the power to reward its Financial Aristocracy cronies and fund its own programs.

A nation-state in which the populace is free to use a variety of competing currencies is a nation-state in which the state can’t fund itself with newly issued funny-money or distribute new money to the super-wealthy.

In a nation that uses competing global non-state currencies, the state must live off tax revenues and bonds sold in the open market, free of central bank collusion.

In a nation that uses competing global non-state currencies, the state cannot generate inflation by over-issuing money.

In a nation that uses competing global non-state currencies, the central bank loses the power to enrich the super-wealthy.

Isn’t it obvious that whomever controls the digital “printing press” of new money controls everything? Conversely, if this power is stripped away from centralized states and their banks and decentralized (as I outline in my new book A Radically Beneficial World: Automation, Technology and Creating Jobs for All), the essential mechanism of transferring wealth to the super-wealthy and their political lapdogs (Clintons et al.) is broken.

States will naturally suppress competing currencies and outlaw any threat to their monopoly. That bitcoin is not yet illegal in the U.S. is a surprise. What isn’t a surprise is that Goldman Sachs has sought patents on its own crypto-currency: Goldman Sachs wants to create its own version of bitcoin. (via Drew S.)

Those who believe states can never lose control of their currency should consider what happens in hyper-inflation. When states debauch their currencies and push them over the cliff, people abandon the currency in favor of money that holds its value and acts as a means of exchange.

In such a setting, a non-state digital crypto-currency currency is a practical solution. Gold and silver are always money, but they have their own risks and limitations (“my lead will take your gold” etc.). When official money loses its purchasing power, even phone-card minutes can act as money.

As farfetched as it may sound today, I suspect there will be a ruthlessly Darwinian sorting of currencies within the next 10 years. Nations with broken national currencies that adopt non-state competing currencies will outperform nations that cling to centralized enrich-the-already-super-wealthy model of central bank-issued currencies.

The only way to reverse rising inequality and break the power of the super-wealthy Financial Aristocracy is to stop using their central-bank issued national currencies. When the world ceases to use the Financial Aristocracy’s money, their power to accumulate more wealth at the expense of everyone else will disappear.

Everyone who is convinced that the current status quo is permanent and unbreakable should consider what happened to the super-wealthy private landholders of the Western Roman Empire. When the empire’s power to coerce broke down, the super-wealthy vanished into the dustbin of history.

Few believed that possible in 475 AD, but history isn’t a matter of belief. Believing it isn’t possible doesn’t stop history.

My new book is #5 in Amazon’s Kindle ebooks > Business & Money > International Economics: A Radically Beneficial World: Automation, Technology and Creating Jobs for All. The Kindle edition is $8.45, a 15% discount from its list price of $9.95.

Delivered by The Daily Sheeple

We encourage you to share and republish our reports, analyses, breaking news and videos (Click for details).


Contributed by Charles Hugh Smith of Of Two Minds.

Wake The Flock Up! Please Share With Sheeple Far & Wide:
  • http://groups.yahoo.com/neo/groups/political_reading_room/ disqus_3BrONUAJno

    It is difficult to stop using a currency which is based on debt when one has placed oneself deeply in debt. All debt-based currencies have eventually failed and brought down the economic system based on them. The same will happen to the dollar. Perhaps we will display the wisdom to avoid replacing it with something equally flaky. The best thing we could do is to emulate the super-wealthy, if we are going to remain in their system, and derive as much value from the debt sources as we can before they fail, i.e. use every penny of your credit limit to buy and hide real wealth, gold, silver, food, bullets, etc., so that you can barter them for everything you need after the dollar fails. Whatever you do, it would be wise to get all of your assets out of paper and the banks before the failure arrives, so you’ll have them when you need them.

    • roger

      and when the bill comes, accept it for value and return it to them.

      • http://groups.yahoo.com/neo/groups/political_reading_room/ disqus_3BrONUAJno

        If it was me, I’d probably dishonor it rather than accept it.

  • doucyet

    BitGold………..check it out.

    https://www.bitgold.com/app#/sign-up

    • RobertFl

      You’d trust someone to hold physical gold for you?
      Use bitcoin, and bitcoin debit cards. Buy Gold/Silver with bitcoin at providentMetals[dot]com.
      Earn bitcoin by lending it at bitjam[dot]com
      Earn 2.35% at Magnr[dot]com
      Move bitcoin between gold/silver/world currencies at uphold[dot]com
      I’m in Tennessee and for some reason I can’t use UpHold, or (some) debit cards. I wish that would change

      • http://www.shitsenders.com Я0llyJ0g3r

        What do you think about these?

        https://bonusbitcoin.co/
        https://ore-mine.org/

        • RobertFl

          I’ll have to explore that. bonusbit seems to be advert driven, not sure about that.
          How’s bitcoin working out for you so far?

          • http://www.shitsenders.com Я0llyJ0g3r

            Great! I ride the waves and get stuff at a discount + some places are offering great deals like this bodybuilding place I use(RUI products) is offering 50% off their products IF you pay via bitcoin so I am all over that. I don’t have as much saved as I want to though but I am going to change that.

            **Disclaimer: I would NOT recommend RUI products to anyone who doesn’t know what they are doing, you could get yourself killed(seriously, it is NOT worth it!) or hurt and that’s not worth it but if you know what you are doing they are a fantastic bodybuilding resource.

          • RobertFl

            With the price of Bitcoin up, I’m thinking about getting a little bitcoin miner and setting it up on a solar panel. It’s not worth plugging it in to the wall to try to mine anything, but, I have a solar panel not doing anything, and if only makes a few satoshi’s every other day, it’s something.

          • http://www.shitsenders.com Я0llyJ0g3r

            That’s a great idea, I wonder what the output per month would be.

          • RobertFl

            When I do it, I’ll let you know the setup and production

      • doucyet

        BitGold is an account you build based on the price of gold and redeemable in gold at any time, with many other features as well. Such as transferring value to a card or purchasing from participating vendors.

        Bitcoin is based on it’s popularity with the masses, much like stock. I’ll stick with gold.

        • RobertFl

          See my post above.
          The problem with debit cards for this (and bitcoin) they sock you on the reload fees. All they do is sell yor holdings and convert them to cash a load a VISA – still sort of tied to the bank/Greenback.
          And, you’re limited on the dollar amount you can spend (anti-laundering laws). There a some bitcoin debit card that actually transact in bitcoin, that is, you load bitcoin, and they transfer dollars to the merchant. But, some of those are restricted in the US, or just some States.
          Dont get me wrong, I have Gold/Silver also, physically. I’m diversified in different means of commerce :-)
          Hold G and S, transact in Bitcoin.

    • http://www.shitsenders.com Я0llyJ0g3r

      I was excited when I fist found that but then I considered what RobertFI said(a while ago).

    • FollowDaMoney

      I prefer lead.

  • AllodialTitle

    Executive Order 11110 is one way to do it, but it did get Kennedy’s brains splattered

  • jadan

    If you want to stop air pollution, just stop breathing!

    • RobertFl

      Dump Trump – he sucks all the air out of a room :-)

      • sunshine

        Who are you going to vote for then?

        • RobertFl

          Rand. Cruz will probably be my second.
          Rand/Cruz Cruz/Rand would rock.
          Judge Judy would rule.

          • skptk

            Constitutional eligibility for Cruz, Rubio is questionable.
            I really like Cruz, but the question has to be answered rather than dodged.

          • RobertFl

            No it isn’t. We’ve had Zippy for 8 yrs. the standard has been changed.

          • skptk

            The Constitution hasn’t changed. Just because the Dems put up someone who admitted he was ineligible, and the MMM went into full defensive mockery mode to protect the Chosen One, doesn’t mean the Repubs are now allowed. Or are you among those who think the Constitution is a flexible, “living, breathing” document.

          • RobertFl

            Ha, no not living breathing.
            I believe what’s good for the goose is good for the gander.
            If obamas mother was American, he was American also.
            I argue that the big secret about his birth certificate is, he was born in 58, when Hawaii wasn’t a state yet. Then there might actually be an argument.

  • Anothereno

    Like I’ve said elsewhere, hey consumers stop consuming things you don’t need, do that and you’ll see how much the government is really wasting…

  • StevetheHun

    Historically, this was attempted. Every national leader who attempted it has not only ended up dead, but has been depicted by history in such a way that their very names invoke hate and disgust.

    Most of those reading this won’t have any idea who those leaders are…

    Good luck with that. It is a noble cause and I applaud the effort. But before you treat the snake bite, you have to deal, effectively, with the snake.

    • sunshine

      Hitler is one of them. Gaddafi is another, I think. Kennedy too. Maybe Assad?

      Your comment is great, I’m glad you see reality. I’ve been over at Breitbart trying to explain this stuff to those fools but you probably already have an idea how it’s going. Not well. Those people loooove their chains and they will defend their de facto rulers to the death. Sad.

      • FollowDaMoney

        Lincoln and Mckinley.

  • YeahRightOkay

    …it is not just central banks…you got to hurt them in the pocket book…like quite buying Microsoft products…since gates wants to vaccinate and euthanize everyone on the planet…quit buying Apple products since the CEO says if you don’t like gays don’t buy our products…and QUIT shopping at WalMart…Sam built a great company…when he died his children became very greedy and now each are worth over $50 billion dollars and rising…look what they do to their employees…

    …but alas…the american sheeple will continue to follow the wolf in sheeps clothing…

  • Pearl Harbor

    Very few people are going to take the risk of figuring out how best to tap into Bitcoin by themselves. If you believe in it so much, tell people how get started.

    • http://www.shitsenders.com Я0llyJ0g3r

      Very easy.
      Step 1: get either a blockchain.info wallet or an electrum.org wallet. Step 2. Buy bitcoin and send it to your wallet

  • http://www.shitsenders.com Я0llyJ0g3r

    You possess your bitcoins, nobody else has access. It is YOUR money that can’t be taken from you(not even via court order if they have no record of you possessing it) as long as it is in a wallet. The exchanges are what always get hacked so never keep your bitcoin in an exchange, buy then immediately transfer to a private wallet.

  • RobertFl

    I have some stored with Coinbase, they are insured.
    btcjam: I’ve pulled my initial investment out, and it is running on the interest I made, I could seed more.
    Magnr and UpHold, true, but, a few of their principals are established in the bitcoin community.
    I thought some else (decades ago) tried to do a crypto-currency sort of thing backed by gold and the Feds shut him down. It was one of the main reason why Satoshi Nakamoto remained anonymous, so no one could go after him.

    But, back to your “possession” point, I can transfer those coins out anytime to a private wallet.
    Uphold does require some time to transfer between bitcoin:gold:silver:currency (I think they offer oil now), and you can’t cash pout anything other than bitcoin. The purpose is to hold value. Like right now, bitcoin is $453, I bought i at $180, if I move that silver, which is mostly holding steady, when bitcoin drops, I move silver back to bitcoin. Not that I’m trying to make money off bitcoin, but, I don’t want to lose either. The ends is the same, move away from the banks.

  • Tatiana Covington

    People are innately unequal.

  • skptk

    Can’t – we’re controlled by Democrats.

  • skptk

    Bitcoin is a digital currency. Everything digital is subject to disruption by an electro-magnetic pulse, as from a solar flare or a nuclear explosion. Despite the risks of “my lead takes your gold”, silver and gold will still be more useful for everyday personal-level commerce You’ll still need borrowed fiat-money to build a factory.