Science of Bioelectrical Wellness

Neurotech Research: a “Science of Spirit Thesis” investigating the Mechanics of Consciousness in Human Evolution with a “Unified Field Theory of Life”, How Consciousness & Energy create Reality to live Beyond 200 years, Feeling Forever Young.

                                            "Robbing You Blind"                              

Introduction to a Dangerous Political Subject affecting everyone - no-one's  listening.

Learn how “Fractional Reserve Banking” manufactures Money out of nothing…  “Robbing you Blind” And making you Poor…  

The study of money, above all other fields is one in which complexity is used... to disguise truth or to evade truth, not to reveal it. The process by which banks create money is so simple that the mind is repelled. John Kenneth Galbraith, Economist, Money, Whence it Came, Where it went, 1975… http://www.johnkennethgalbraith.com/index.php?page=homepage 

Once a nation parts with the control of its currency and credit, it matters not who makes the nations laws. Usury, once in control, will wreck any nation. Until the control of the issue of currency and credit is restored to government and recognized as its most sacred responsibility, all talk of the sovereignty of parliament and of democracy ... is idle and futile."   Prime Minister William Lyon Mackenzie King In 1935... 

http://en.wikipedia.org/wiki/William_Lyon_Mackenzie_King 

He  changed the Banking Laws of Canada making the Bank of Canada into a Public Bank Spending “Interest Free” money into the economy on the 3 levels of Government… for 38 years. This is a process where the Government controls and prints its own money and gives credit to its people in small business and lends money to its provinces and communities interest free... The Country prospered for 38 years, until "The Trudeau Initiative of 1974" with the help of the International Monetary Fund, private { for profit} corporations like The  Federal  Reserve Bank  in America. To make this painfully clear... these are the Private Corporate  Banks... Canada borrows from Now... costing the Canadian people 1.2 Trillion dollars in illegal interest from 1974 to 2012. This is why the Canadian people have sued the Harper government... Canadian Finance minister, Governor General, the Queen and the IMF for Fraud... and won in the Supreme court on October 14th, 2015.   

How and why did this happen and what can we do to change it...

Read the facts here. 

Who owns the Banking System…

Multi-National Corporations… Privately controlled Corporate Banks from the Central Banking Systems” like the IMF and The Federal Reserve control the Worlds Banking System and create money out of nothing using Fractional Reserve banking {it is backed by nothing tangible} and lend out money to governments around the world at great interest rates to creating ‘Money as Debt”. The issuance and control of Money is the ultimate Power in the world. These Central Banks control the debts of Governments around the world and their parent corporations help manage the production of weapons through more debt-based loans for wars between neighboring countries. {Like with Israel and its neighbors}.

A Synopsis on Multi-National Corporations

Corporations now control America and claim the full rights enjoyed by individual citizens while being exempted from many of the responsibilities and liabilities of citizenship when incorporated in America {seventh-five percent of all corporations in the world are or were incorporated in America}. Furthermore, they are guaranteed the same right to free speech as individual citizens. The subsequent claim by corporations that they have the same right as any individual to influence the government in their own interest pits the individual citizen against the vast financial and communications resources of the corporation and mocks the constitutional intent that all citizens have an equal voice in the political debates surrounding important issues." This new individual citizen (The corporation) is not conscious of its effect on society and the people at the helm: their duty is to focus on the money and their shareholders…. The author is David C. Korten When Corporations rule the world: Now out in its 20th anniversary issue... there are better paths... https://www.amazon.com/David-C.-Korten/e/B001JP3MR8

On Free Market Capitalism and Crony Capitalism

A handful of corporations and financial institutions command an ever-greater concentration of economic and political power in an assault against markets, democracy, and life. It's a “suicide economy,” says David Korten, that destroys the very foundations of its own existence. The bestselling 1995 edition of When Corporations Rule the World helped launch a global resistance against corporate domination. In this twentieth-anniversary edition, Korten shares insights from his personal experience as a participant in the growing movement for a New Economy. A new introduction documents the further concentration of wealth and corporate power since 1995 and explores why our institutions resolutely resist even modest reform. A new conclusion chapter outlines high-leverage opportunities for breakthrough change.

The Subject of "When Corporations Rule the World" is a testament to the understanding of Americas love affair with free market capitalism and crony capitalism [Friendly Fascism].

The people needs to understand the difference between free market capitalism and the new trumpian crony capitalism on the rises. Actually, the distinction between the two is actually quite clear rather than bogus. Crony capitalism and free-market capitalism have been in constant struggle throughout the history of the American economy. Crony capitalism has risen significantly in the past 50 years since the inception of lobbying. Crony capitalism is essentially “friendly or soft fascism”, the only difference there is no dictatorship. Sure, some corporations are mischievous and rapacious but only with the help of government. Governments around the world help and assist corporations gain the edge in the marketplace through cronyism with {Republican 2008} bailouts, subsidies, taxes, regulations and tariffs. Everything involving cronyism can be traced to the insatiable desire of the [Republican] state to gain and hold power, and big business understands this, so they collude with government by all the aforementioned methods to gain an advantage in the marketplace. This is basically the destruction of the “Constitutional Republic of We the People” in the works for over 100 years. Corporations can’t force you to buy any product unless government is involved [and this is by far the role of the Republican party in America over the last 50 years filled with Millionaires and Billionaires now controlling the Presidency, the Congress and the Senate… giving you Friendly Fascism].

Who owns the Global Media... 

Multi-National Corporations… Back in 1983, approximately 50 corporations controlled the vast majority of all news media in the United States.  Today, ownership of the news media has been concentrated in the hands of just six incredibly powerful media corporations.  These giant private corporations control most of what we watch, hear and read every single day.  They own television networks, cable channels, movie studios, newspapers, magazines, publishing houses, music labels and even many of our favorite websites. 

These gigantic media corporations do not exist to objectively tell the truth to the American people.  Rather, the primary purpose of their existence is to make money for their Shareholders…  they are not going to do anything to threaten their relationships with their biggest advertisers and one way or another they are always going to express the ideological viewpoints of their owners (such as the largest pharmaceutical companies that literally spend billions on advertising).

Sadly, most Americans don’t even stop to think about who is feeding them the endless hours of news and entertainment that they constantly ingest.  Most Americans don’t really seem to care about who owns the media.  But they should.  The truth is that each of us is deeply influenced by the messages that are constantly being pounded into our heads by the mainstream media.  The average American watches 153 hours of television a month. 

The six corporations that collectively control U.S. media today are Time Warner, Walt Disney, Viacom, Rupert Murdoch’s News Corp., CBS Corporation and NBC Universal.  Together, the “big six” absolutely dominate news and entertainment in the United States.  Now, most Americans begin to feel physically uncomfortable if they go too long without watching or listening to something.  Sadly, most Americans have become absolutely addicted to news and entertainment and the ownership of all that news and entertainment that we crave is being concentrated in fewer and fewer hands each year.  But it is the “big six” that are the biggest concerns.  When you control what Americans watch, hear and read you gain a great deal of control over what they think.  They don’t call it “programming” for nothing. 

 A Canadian Perspective a plea for real change From the Canadian Prime Minister

   This is a plea for real change to the Newly elected Canadian Prime Minister, Justin Trudeau... Learn what Canadian Provincial and Federal Finance Ministers have been doing for the past 40 years...Learn why, what liberal Premier Wynne is doing Selling Ontario Hydro 1, violated Canadian laws causing treason, "according to Former Cabinet Minster Paul Hellyer". Learn why “The Trudeau Initiative of 1974” Creates “Money as Debt” over not using the {interest-free} publicly owned “Bank of Canada” - where “Money is Wealth”... Please Read this report... Only you Mr. Prime Minister can change these injustices against "the Canadian People that Elected You to do their Bidding for THEM."  {The Supreme Court of Canada heard the 10 years long Case on October 30th 2015}. 

Mr. Prime Minister... Be the real Hero to the Canadian People and Re-store the Bank of Canada to its pre-1974 status...{1938-1974}. Do what politicians could not do in 40 years and re-claim your family's name after being manipulated by international Private Bankers in 1974... creating the Trudeau initiative that has continued till now. Justin, "Be the One" to change this ...You possess the two things that all the others lacked...  Consciousness and Compassion  for the Canadian People... use the 50 billion dollars you need this year ...from the Bank of Canada... money that is interest-free for your election promises with middle class Canadians. Your predecessors Mr. Prime Minister had only the Love of Canadian-based Multi-National Corporations and Money to do their bidding for them. Learn the Truth here.

Watch this video with Bill Abrams on the Bank of Canada.  

 

The Research from this New Investigative Report, “Robbing You Blind” focuses on two things, How Fractional Reserve Banking makes money out of nothing and how "The Trudeau Initiative of 1974"  does not use the Bank of Canada. It uncovers the true nature of International Banking, Credit & Commerce in Canada. In addition, it explain thoroughly how “Privately Owned Corporate Banks” use IMF - money to Control the Government by forcing Canadians to borrow money from them at high-interest-rates... over using the {interest-free} publicly owned “Bank of Canada” where “Money is Wealth”, These Private Corporations  are non-other than - the World Bank, the I.M.F. in Europe and... the Federal Reserve Bank in America, however, we have to understand that they are "Not globally funded Public Institutions" ... but are all run by privately controlled corporations for a profit. The simple fact is: Wall Street and Private International Bankers are behind these institutions.

Stephen Harper never talked about why he supported for 10 years… “The Trudeau Initiative of 1974” to Create “Money as Debt” from fractional reserve banking… during his re-election campaign. Trained as an economist... he only talked about why he supported the Corporate Free-Trade Agreements, “International Monetary Fund”... the G-20 summits for Global Governance… and the lost Canadian Sovereignty. Maybe that is why he lost... no love for the people, just contempt... with new laws for Barbaric Cultural Practices and  new Bills - Like Bill C-51 protecting Corporations from barbaric people defending their rights on picket lines. Let get the picture of this election straight here...this is why People Voted for You... Mr. Prime Minister... People saw the love and Compassion in your heart for them and they voted in the millions for You... for Justin Trudeau, not for the liberal party, people can now see the difference and are no longer... just fearful Sheeple herded into just 2 pens when there are four intelligent options.

Watch this Video with Stephen Harper on the G-20 praising Corporate Free Trade Helping our G-20 partners and stealing Canadian Sovereignty...

However, In the 21st  century… it is still hard to believe, with what we collectively know and have complete access to on the Internet, that people still know absolutely nothing about the creation of Money or how it has total control over their lives… yet they still think that “the Government is the "Bad Guy" and controls them”… that the political parties are all corrupt stealing their "slave wages" when in reality governments are held hostage by Multi-National Corporations and ignorant public opinion. 

 As far as I know ..."Teaching the voting public” in Canada on the truth about "International Banking, Business and ignorant politicians"...  has never been done before... because Sheeple ARE supposed to be in the dark without any depth or real clarity on the “Concepts of Money or the ability to re-define the facts... of the International Bankers with "The International Monetary Fund {I.M.F.}" and Private Corporate Banking controlling G-8 and G-20 meetings... detailing that they are not the "Good Guys". The system is designed to Fool You... giving you Robin Hood, while they steal from the Poor to give to the ultra-Rich...“Stealing Your Money”… and making you Poor over a life-time of pain and suffering.

 
As it stands all governments, give away their sovereignty… the “control of their hard earned currency, coin, and credit” of their country to “Privately Controlled Corporate Central Banks"... like the IMF and the Federal Reserve that run the G-20 Summits for Global Governance [look at Greece, Ireland or Iceland}.  
 
Consumers have no idea that “Private Corporate Banks” really control most governments and are the ones really stealing the money {through high interest rates and mortgages}. Multi-national Corporations control the political party running each government.  The voting public still only know how to “play party politics” instead of looking at the facts before their eyes… blaming each of the 4 parties… for their own stupidity for electing them… 

The Canadian voting public have their heads buried in the sand, ignorant and fearful of this truth and they will suffocate financially and die a horrible financial death in the end without the knowledge of the publicly owned {interest-free} Bank of Canada.

 

Please read this very important piece of research carefully, watch the embedded videos and click on the links. This is a complete multi-media experience with references, text, and videos. As a Lecture and video presentation of this complete E-Book, “Robbing You Blind” is separated into 4 sections and would take 4 evening to present and discuss at length. 

 

 Robbing You Blind... And making You Poor, in Mind, Body and Spirit.

 

For my grandfather, my father, and I in Canada… for over the last 60 years... the concept of money is one where people work together, pool their resources and create a governing body to help manage those resources to build wealth in a country…  “The essence of Money is "People working together” as a collective in a union of ideals, pooling their resources to create a great life in a prosperous country… Wealth is what they did with their dreams, their ideas, and their time to create a wealthy a country. This is a story of a country that did just that… a collective in a union of ideals, pooling their resources that created a great country… Canada is “a country of the people”… by the people and for the people as they took their ideas, their dreams and their time to create great wealth from 1938 to 1974 using the publicly owned Bank Of Canada

William Lyon Mackenzie King; prime minister of Canada, in 1935 amended the Bank Act and turned the Bank into a public institution by 1938. The Bank was almost immediately harnessed to finance not only Canada's war effort (we ranked fourth in production of allied war material) but also a long list of infrastructure projects including the Trans­-Canada highway, the St. Lawrence Seaway, and over the decades, hospitals and universities across the country. This was done with Canadian Money interest-free spent into the 3 levels of government… and around the country touching millions of hands and setting millions of people free from debt and starvation.

Intelligent Voting in Canada with knowledge of why you are voting  is a sacred responsibility… it is a way of keep the Corporate Wolves at bay… out of the political parties… and stopping them from stealing the wealth of our country? However, we As Canadians have failed miserably over the last 40 years to do just that… by Voting in and electing Corporate thieves working with Private banks like the IMF stealing the Bank of Canada and giving the people back debt and servitude.

We are ready to build a better way forward in life for all Canadians… for Women, Children and Families creating conscious, compassionate and innovative working people. This election has shown me that… fortune favors the brave of heart willing to stare down inevitable monetary death of our Conservative financial system…. Knowledge is power when we learn the truth about our Banking system… Intelligent Canadians can learn from “Robbing You Blind” the “Truth about Money, Credit and Commerce”. Studying this philosophy over time will make Canadians an expert on Banking, Commerce and Credit and very powerful…  
 
We may be headed for dangerous environmental and political waters in our Global future. Most Canadians will be better educated after studying this report... than any Finance minister or corporate banker… after reading “Robbing You Blind”...  With this knowledge and Financial education Canadians will be able to take back their Political Power with a measure of shock resistance and shock proofing making Canadians fool proof. [This Information is shock resistance – arm yourself and Read, The Shock Doctrine]..

Watch a 12 year old Canadian Girl speak on Corporate Corruption of the Bank of Canada. 

 When 12 year old school girls know more about international Banking and finance than all the politicians of the world... it is time for the voting public to take a stand... It is about time  that we all wake-up Globally and learn the truth directly from  “The bankers themselves”. These are the words from the most brilliant minds, geniuses, and dangerous people in the world trying unsuccessfully to wake up, Sheeple from their couch potato, Slave mentality in an intellectually and creatively stagnant society. 

Right from the Horse’s Mouth:  Sir Josiah Stamp Director, Bank of England ...

 “’The modern banking system manufactures money out of nothing. The process is perhaps the most astounding piece of sleight of hand that was ever invented. Banking was conceived in iniquity and born in sin. Bankers own the Earth. Take it away from them, but leave them the power to create money, and with the flick of the pen they will create enough money to buy it back again... Take this great power away from them and all great fortunes like mine will disappear, and they ought to disappear, for then this would be a better and happier world to live in. But if you want to continue to be slaves of the banks and pay the cost of your own slavery, then let bankers continue to create money and control credit’.” Sir Josiah Stamp Director, Bank of England 1928-1941 (reputed to be the 2nd richest man in Britain at the time)…  Josiah Stamp {the Bank of England a Private individually controlled Bank since 1694}. 

http://en.wikipedia.org/wiki/Josiah_Stamp,_1st_Baron_Stamp 

 
"We are absolutely without a permanent money system...  It is the most important subject intelligent persons can investigate and reflect upon. It is so important that our present civilization may collapse unless it becomes widely understood and the defects remedied very soon."  Robert H. Hemphill, Credit Manager, Federal Reserve Bank of Atlanta, Georgia (1935)  In the foreword to a book by Irving Fisher, entitled 100% Money (1935).  
 
“Whoever controls the volume of money in our country is absolute master of all industry and commerce... and when you realize that the entire system is very easily controlled, one way or another, by a few powerful men at the top, you will not have to be told how periods of inflation and depression originate.” James A. Garfield, Another - assassinated president of the United States… {Shot in 1881, after attacking political corruption}. 

 “All of the perplexities, confusion, and distress in America arises, not from the defects of the Constitution or Confederation, not from want of honor or virtue, so much as from downright ignorance of the nature of coin, credit, and circulation.” John Adams, Founding Father of the American Constitution…

  "The Government should create, issue, and circulate all the currency and credits needed to satisfy the spending power of the Government and the buying power of consumers. By the adoption of these principles, the taxpayers will be saved immense sums of interest. The privilege of creating and issuing money is not only the supreme prerogative of government, but it is the government’s greatest creative opportunity.”  Abraham Lincoln, assassinated president of the United States… http://www.themoneymasters.com/the-money-masters/famous-quotations-on-banking/

Robbing You Blind - Fractional Reserve Banking and the Alternative... 

There really are two types of Money

Let us take a closer look at our stupidity and ignorance of the nature of  coin, credit, and circulation and our hidden self, the manipulation of the dark side of our dualistic personality, programed by society, and our secret passion {obsession} for money over everything else in the world.

There are two types of money in the world…the first comes from “A Government of the people” that controls the amount of money created… that “is spent out” from a Public Bank owned by the people. The Public Bank is interest free – spent to manage social programs, to build infrastructure in its cities and buy homes, to set a minimum wage and create jobs. At this State of Creation… “Money is wealth” as it circulates throughout the economy of the country being spent at all 3 levels of government. This wealth of the country is used up in the local, provincial, and Federal economies living life and growing families to stabilize the economy of the country and create wealth in the people of this country in an unstable, violent, dangerous world of Debt Management. This actually happened in Canada from 1938 to1974.

The second type of money comes from “Private Corporate controlled money from Central Banking Systems” like the IMF that control the Worlds Banking and create money out of nothing using Fractional Reserve banking {it is backed by nothing tangible} and only lent out to common people and governments around the world at great interest rates creating Debt… here ‘Money is Debt”.

Therefore, to sum up, our definitions of money in the world…Publicly created money directly from “a government of the people” creates wealth in a nation and in its people…It’s “wealth is the People” of the Country and the natural resources they use to build their country and its wealth will continue to grow until another nation comes in to steal its wealth.

Privately created money by Corporate Controlled Central Banks [like the IMF] “is created out-of-no-thing” {but the promise of ignorant people and its governments to pay it back}… this creates major debts in its people and wars with its neighboring countries because they have all the wealth. The issuance and control of Money is the ultimate Power in the world. Central Banks control the debts of Governments around the world and their parent corporations help manage the production of weapons through more debt-based loans for wars between naboring countries. {Like with Israel and its neighboring countries}.

 Watch the Video On Private Banking - Money as Debt.

So what type of Banking does Canada have…  the freest, most open, and most stable country in the world… conscious, intelligent people like the ones able to read this article would think. “Publicly created money from a government of the people”… Right. Well you are wrong -We did - from1938 to 1974…until Pierre Elliot Trudeau Prime Minister of Canada  decided to work for “Private Corporate Banks and let them control to money in this country… 

Fractional Reserve Banking… and why it’s a disaster…

The first thing you need to know about “Fractional Reserve Banking” {“A 9 to 1 Fractional Reserve System”} is that it’s taught incorrectly at university. Professor Charles Goodhart described standard university teaching of our monetary system as “…such an incomplete way of describing the process of the determination of the stock of money that it amounts to mis-instruction” {professors do not talk of its exponential function of growth in a finite society}.

Ø  “One thing to realize about our fractional reserve banking system is that, {it is an exponential function} like a child’s game of musical chairs, as long as the music is playing, there are no losers.” Andrew Gause, Monetary Historian, http://www.andygause.com/

Ø  “Anyone who believes exponential growth {of the banking system} can go on forever in a finite world is either a madman or an economist.” Kenneth Boulding, economist, http://en.wikipedia.org/wiki/Kenneth_E._Boulding

Ø  http://globetrotter.berkeley.edu/conversations/Boulding/kboulding-con0.html

Ø  “The greatest shortcoming of the human race is our inability to understand the exponential function.” …Albert A. Bartlett, physicist, http://www.hubbertpeak.com/bartlett/

            Professor Charles Goodhart goes on to say, “The reason the workings of our monetary system are taught incorrectly is that the details of how it operates in practice are too complex for students to study in a reasonable period as part of an undergraduate course.” [It is evident to Economist, John Kenneth Galbraith the professors do not understand the true nature of money. The study of money, above all other fields is one in which complexity is used to disguise truth or to evade truth, not to reveal it. The process by which banks create money is so simple that the mind is repelled. ] Therefore, instead, they do not learn the truth but learn an oversimplified cartoon version of reality to evade the truth.

          Professor Goodhart realizes that Unfortunately the choice of simplifications made in the teaching of our monetary system have led a great many economists to some disastrously wrong conclusions about the behavior of money.

           Michael McLeay et al. (Monetary Analysis Directorate of the Bank of England) explain how, rather than banks’ lending out deposits that are placed with them, the act of lending creates deposits — the reverse of the sequence typically described in textbooks.” Most textbooks present a description of our monetary system based on the “money multiplier model” in which the money supply is said to be “exogenous” {originating from outside; derived externally from the economic system} and that deposits enable loans. The experts however, have long known that loans enable deposits and that money is “endogenous” {Endogenous processes are those that originate from within an organism}. Endogenous growth theory holds that economic growth is primarily the result of endogenous and not external forces. [1] Endogenous growth theory holds that investment in human capital, innovation, and knowledge are significant contributors to economic growth. While the money multiplier theory can be a useful way of introducing money and banking in economic textbooks, it is not an accurate description of how money is created in reality.” “This description of the relationship between monetary policy and money differs from the description in many introductory textbooks, where central banks determine the quantity of broad money via a ‘money multiplier’ by actively varying the quantity of reserves.” “And in contrast to descriptions found in some textbooks, the Bank of England does not directly control the quantity of either base or broad money.” “Banks do not act simply as intermediaries, lending out deposits that savers place with them, and nor do they ‘multiply up’ central bank money to create new loans and deposits” Bank of England Quarterly Bulletin…

Money Creation…

When someone goes to a bank asking to borrow money, the bank does not need to take that money from its reserves. Instead it creates that money on the spot. If someone asked to borrow $1,000, then the bank will simply hand them a check-book (or a debit-card) and tell the borrower that they can spend up to $1,000 with their check. This is $1,000 of fresh new money that never existed before.

Money circulation…

This $1,000 is then free to circulate in the economy, being passed from person to person during the course of ordinary trade. Money may pass through a great many hands between being created and destroyed.

Money destruction…

This is the part that so few people seem to know about. When the borrower repays the loan to the bank that money disappears back out of existence {because it was created out of nothing and goes back to no-thing}. Thus the amount of money circulating in the economy at any one time is rather analogous to the Population of Sheeple, a species of animal… unconscious of what is really going on. The current population is determined by previous birth and death rates. Keeping the amount of money in the economy reasonably constant is a balancing act where the central banks attempt to encourage or discourage new lending so that the rate of new money creation is approximately equal to the rate at which existing money is expiring… {a very elaborate Ponzi Scheme” but still just a Ponzi scheme that is illegal for us to play with each other because everyone at the bottom of the pyramid losses. One of the ways they can do this is by adjusting interest rates up and down. Lower interest rates encourage lending, higher rates discourage it – or at least that’s the plan. Limits on Money Creation – there are none!  

 Most people incorrectly assume that the government directly controls the amount of money in the economy and has control over how it is created and spent.

They assume that money is essentially tokens that get passed from person to person as they exchange goods. One would assume that the amount of tokens would remain constant except for occasional money printing by governments. Indeed money could work in this way should governments have chosen such a system, but in reality, money does not work like this at all*. {*A tiny fraction of the money supply does in fact work in this way, but the quantities are so small that this part of the money supply can be virtually ignored… it is ignored because issued currency is only 3 % of the global money supply and it is strictly regulated}.

Instead we have a system in which money is being continuously created and destroyed by privately controlled central banks, {They issue triple A securities, loans, bonds, mortgages and such…. That create Debts… Which is not real money.}

*Years ago, banks used to create money only if they had the real gold with them or someone deposits the gold to the banks. But this is not how the bank operates today. Nowadays, privately controlled banks create money as long as we, as individuals, borrow it and give the promise to return that money back. So, today, money is backed by the loan or mortgage.

“9 to 1 Fractional Reserve Banking”…{Video}.

However, “private banks loan money that does not exist” [meaning they do not have any in their vaults when they create new money in the form of the loan or mortgage}. Furthermore, as soon as people realize that bank creates money out of nothing, a new legal regulation is invented to protect their rights, which is called “9 to 1 Fractional Reserve System”. It limits how much money the bank can create. Basically, if the bank has $1K cash in hand, they can loan out up to $9K to borrowers based on the 1:9 fractional reserve system regulation. However, it does not really limit the bank to create money up to $9K.

 In reality, they can create the money up to $90K which makes it 1 to 90 ratio. For instance, if the bank started with $1K cash in bank, it means that the bank can loan up to $9K to all of us. So, let's assume that Person #1 takes the loan of $9K to buy a car from Person #2. Based on the person #1's promise to pay the money back, bank will create $9K cash and loan it to person #2. The tricky part is… that Person #2 will then deposits $9K to the bank. Based on the 9:1 federal reserved regulation, the bank can then reserve $900 ($9K/10) and loan out the rest which is $8100 ($90:$8100 =1: 9). Moreover, it moves on to the next loan transaction until the bank can't reserve money anymore. At that point in time, the bank will have total of $10K cash in hand and the total of $90K loan has been created.*  

Is there an alternative? {Interest- Free Public Banking with the Bank of Canada}

Yes. A fixed money supply, where tokens {coins or currency} are circulated indefinitely is known as full (or 100%) reserve banking. The system is rarely discussed these days, but after the great depression – the last comparable crisis of our monetary system, full reserve banking was taken very seriously. It is about time we looked at it again.  A system like the one employed at the Bank of Canada in 1938, a public institution that still issues currency notes like the 20-dollar bill that is still backed by the “Government of the People”.

Synopsis: On Public Banking with the Bank of Canada

A public bank is based on public wealth in its economy… building a wealthy society like Canada did from 1938 to 1974 backed by the resources of Canada and its people willingness to work hard as they did from 1938 to 1974, {The key importance of this is A 20 dollar note, like all the bills issued by {the B.o.C.} one of the last Public Banks in the world… may become worth more than any other country’s money in a worldwide global recession. It may be worth many times more because it is based on wealth not debt…unlike Federal Reserve Notes in America it is not based on wealth but public debts, which grow exponentially in the other direction}.

The Bank of Canada was established as a private bank in 1935 under private ownership but in 1938, recognizing that money should be created in the public interest, the government of William Lyon Mackenzie King, prime minister of Canada, in 1935 amended the Bank Act and turned the Bank into a public institution by 1938. The Bank was almost immediately harnessed to finance not only Canada's war effort (we ranked fourth in production of allied war material) but a long list of infrastructure projects including the Trans­-Canada highway, the St. Lawrence Seaway, and over the decades, hospitals and universities across the country.

It was mandated to lend not only to the federal government, but to provinces and municipalities as well with a limit of one third of federal budget and one quarter of a province's budget.

It also created a subsidiary, the Industrial Development Bank, helping create the industrial base that recent Liberal and Conservative governments have all but destroyed through trade and investment agreements{ with “Global Free Trade Deals”}. The list goes on and on ­­ and includes social programs like the Old Age Security Act and programs to assist Second World War veterans with vocational training and subsidized farmland. The interest on its loans, of course, simply went back into government coffers.

The Bank of Canada Act requires—the BoC to give the federal government loans up to a total value of one-third of the government’s predicted annual revenues. For provincial governments it is a quarter of those revenues. The loans have to be repaid within the first quarter of the next fiscal year. At that point, the government just needs to pay back the loan with incoming revenues, and take out another loan to make up any deficit. The benefit of that is no national debt because the money is spent interest-free. The vast majority of the money in Canada’s economy was created by Private bankers with the push of a button. The BoC {Bank of Canada} can do that also as it has the Canadian people and their environmental resources to back it up...

 However, after nearly 36 years of this incredibly productive use of publicly created credit, unprecedented economic growth, and increasing income equality, international finance got its chance to launch the free market counter­revolution against democratic governance...  using Stagflation. This is a process of simultaneous stagnation, unemployment, and inflation… these were one of the first launching pads for Milton Friedman's radical free market ideas {the idea that bullshit baffles brains – worked}: putting the creation of credit into private hands {Corporate Dictators} and creating debt burdens {for middle class people}, which would restrict the potential for democratic governance in Canada [and the People to control their own lives}.

Economist Milton Friedman argued that stagflation was the direct result of irresponsible governments issuing too much money or borrowing recklessly from their central bank and sparking inflation. His radical free market ideology was shared by the Bank for International Settlements (the bank of central bankers) and in 1974 it established a new committee, the Basel Committee, to establish global monetary and financial stability.

However… When someone takes out a mortgage, the borrowed money does not come from someone else’s savings. Instead, the money is created in that instant through the trick of double entry bookkeeping. This is Milton Friedman's radical free market ideas: putting the creation of credit into private hands… the Private Banking Institution records the loan on one side as a liability, and the debt owed plus interest to the Private Bank as an asset… creating debt burdens which restrict the potential for democratic governance in the hands of “the People”. As long as the two balance out, the system works pretty well for the Private Banking Institutions. {The Basel Committee’s, global monetary and financial stability is obviously made for the Private Banking Institutions controlling the world’s public banking and foolish governments turning previously intelligent people into Sheeple because of their ignorance of the nature of  coin, credit, and the circulation of money}.

The Basel Committee's solution was to encourage governments to borrow from private lenders and end the practice of borrowing interest free from their own Public – interest- free central banks… like they were doing since 1938. In 1974, under the Pierre Elliot Trudeau Liberals… Canada immediately stopped borrowing from the “Peoples Central Bank”, the Bank of Canada, launching the country on a deficit accumulation path that in 2012 saw interest payments to private lenders top $1 trillion dollars in only 38 years {That averages 26.3 billion dollars stolen from the Canadian People every year for 38 years and today under the repressive Harper Government being re-elected because “Bullshit baffles brains”… we see clearly that the deficit is now in October 2015, 613 billion dollars in its current fiscal policy..

"Each and every time a bank makes a loan (or purchases securities), new bank credit is created — new deposits — brand new money." Graham F. Towers, Director, Bank of Canada http://www.michaeljournal.org/appenE.htm.

This ended the “Wealth-Building Era” of our publicly funded Canadian People’s Government… and started us down the path to a debt-building era of unelected private gangsters running the “Dictatorial Harper Government[video}...{no.# 2}. The rationale was thin from the start:  The Canadian Central bank {BoC} borrowing was and is no more inflationary than borrowing through the private banks. The only difference was that private banks were given the legal right to fleece Canadians. The effect of the change was to effectively take a powerful economic tool out of the hands of this formerly democratic government.          

  "Once a nation parts with the control of its currency and credit, it matters not who makes the nation's laws.  Usury, once in control, will wreck any nation." ­ William Lyon Mackenzie King Prime Minister.

Conclusions: Wealth Management, bad idea - Debt Management Very Good Corporate Business.

Forward to 2015 and we see what is really happening with “Debt Management”… and the Basel Committee's solution to encourage governments to borrow from private lenders… from the spring of 2014 to the fall of 2015, we see that the European Union of Countries have a massive debt crisis because they are using a “fractional reserve banking system of debt management” and the I.M.F. has to bail-out the E.U. countries like Greece. The real question is who gets the bail-out money and where is it …

watch this video and see who gets the money....Click on link

 {A hint the people assume the debt of the country but the international banks get the bail-out money…  No!!! Watch the video}. The Debt Crisis has mainly to do with the fact that money is created out of nothing using Fractional Reserve banking… backed by the promise to pay it back at great interest rates … here ‘Money is Debt”… lent out to common people and governments like Greece creating “A Debt Crisis” because the contracts the countries signed for their economic growth in The E.U. under free trade are all fraudulent. And the people do not know the hidden catch… that they now have to give up their natural resources and sell off their Crown Corporations. These government corporations previously Created Wealth in their countries. However, now it is used to pay for E.U. Debt management… They, the people of a country “like Greece” have to pay their outstanding bill… their increasing National Debt with their  natural resources,  Crown Corporations or if all they have their pension plans or social services - to these private Corporations that own the banks and control the economies of most countries}.

According to Michel Chossudovsky Professor of Economics, University of Ottawa

The International Monetary Fund {the IMF.} helps war-torn countries restructure their economies with debt-based loans up to 60% securing the loans with the counties natural resources and the selling off of government owned companies. When an IMF mission goes into a country and requires the destruction of social and economic institutions as a condition for lending money - this is very similar to the physical destruction caused by NATO bombing. The IMF will order the closing down of hospitals, schools and factories. That's of course more cost effective than bombing those hospitals, schools and factories, as they did in Yugoslavia, but the ultimate result is very similar: the destruction of the country. The IMF has what is called the MAI - the Multilateral Agreement on Investment. It's the ultimate investment treaty. Signing leads to the economic destruction of the targeted country. Well, really, war is simply the MAI of last resort. Some think the IMF and the World Bank are playing contradictory roles, which is not so. And also there's a tendency to see these institutions in isolation. In fact they are simply two tools used by the Western elite to destroy nations, to turn them into territories. From an Interview by Jared Israel (4-16-00)].

Note according to Michel Chossudovsky: [To understand the IMF and all these international organizations {like the World Bank} we have to understand that they are all run by private corporations for a profit. The simple fact is: Wall Street is behind both these institutions. They are run by Private Bankers not sociologists.] {Just tools of Disaster Capitalism}

Now in the spring of 2015 Europe is being over-run by over 2 million people looking for a better life with just over 300 thousand refugees coming from “War Torn Syria” moving into Europe needing financial help {only about 50,000 per family] to be taken care of. More meetings of the G-20 countries… more distribution of 2 million refuges… to each member country and more Debt for Europe and another Debt Crisis at the end of 2016 {meaning more profit for these private corporations}. Look to part 2 for all the evidence of these allegations in the text and many videos.

The Committee on Monetary and Economic Reform challenges the Bank of Canada

The Committee on Monetary and Economic Reform (COMER) alleges that the Bank of Canada, the Queen, the attorney general, the finance minister, and minister of national revenue are engaging in a conspiracy with the International Monetary Fund (IMF), the Financial Stability Board (FSB), and the Bank for International Settlements (BIS) to undermine Canada’s financial and monetary sovereignty. COMER is going to have its day in federal court. No major media have covered this story. That could be because of the powerful vested interests the suit targets, manipulates the world’s economy… and our own “Economist - Prime Minister”, Steven Harper supports them {the (IMF), (FSB), (BIS)} 100%.

 Lawyer Rocco Galati on the COMER Case in  Toronto

 Toronto-based COMER and its fellow plaintiffs Ann Emmett and William Krehm  with their lawyer Rocco Galati, the lawyer trying the case are suing over fundamental changes to the Bank of Canada’s role that were made in 1974. The bank stopped making loans to the government. COMER alleges that by no longer providing these loans, the Bank and others named in the suit have forced the government to finance budget deficits by borrowing from private markets and paying hundreds of billions of dollars in interest. Last year, $28 billion—over 10 percent of the federal government’s $277 billion in expenditures—went to servicing the debt. That’s more than what was spent on National Defense ($21.5 billion) and nearly as much as the Canada health transfer ($30.5 billion).

The  Committee on Monetary and Economic Reform (COMER) have for years ­­ decades, actually ­been trying to get people to pay attention to what is far and away the biggest, most outrageous fraud ever perpetrated on the Canadian people. I am speaking here of the fact that instead of the Canadian government borrowing money from its own bank, our bank ­­ the Bank of Canada ­­ it has, up-till 1974 chosen instead to borrow exclusively from private international and domestic financial institutions providing them with enormous, absolutely risk free profits for almost four decades.

Video on Lawyer Rocco Galeti with CBC's Amanda Lang

 The result, according to economist Ellen Brown: "By 2012, the Conservative and Liberal governments had paid C$1 trillion in interest since 1974 ­­ twice its national debt.

Interest on the debt is now “The Trudeau Government's” single largest budget expenditure ­­ larger than health care, senior entitlements or national defense." While some of that interest was paid to holders of Canada Savings Bonds, the vast majority was paid to private lenders. In the early 1990s, at the height of the media's deficit hysteria and rhetorical nonsense about hitting a "debt wall," 91 per cent of the $423 billion debt was due to interest charges. Our real debt ­­ revenue minus expenditures ­was just $37 billion.

Rocco Galati has a reputation for winning unlikely lawsuits. These are serious people with wide knowledge of the financial and monetary system.  The Globe and Mail’s justice writer Sean Fine once called Galati Canada’s “unofficial opposition” for his propensity to have the government’s edicts tossed out in court. One recent high-profile win saw Galati block the Conservatives appointment of Justice Marc Nadon to the Supreme Court with a suit he won in March last year.

Galati predicts the government will try to delay the suit, but if it goes ahead, he said the facts will be borne out. “A lot of the facts are not in dispute, believe it or not. They just don’t want this case heard.” Rocco Galati [video} plans to call the {BoC} governor, the finance minister, and others to testify if the case goes ahead. The next scheduled hearing for the case is October 30, 2015… 

 Part 2 with Amanda Lang and the Bank of Canada 

The New Approach to Freedom from 1949…

Only a revolution in the mind of the individual is needed to accomplish the greatest stroke for freedom of all time. It is a remarkable fact that no constitution of any state, nor any declaration of human rights, has ever proclaimed the right of freedom of money issue. Yet this right is inseparable from the right of bargain or exchange, which is the very foundation of liberty.

Man's ignorance of the laws of money has blinded him to the very touchstone of freedom. You are indeed sovereign, if you but realize that your money power is your sovereign power. You need no political laws to liberate your power for prosperity and peace; you are the master of your fate by natural law, if you but discover that law.

As you scan the world scene with all its miseries, its drab outlook, the discouraging prospect of a solution for humanity's problems by political means, and the remoteness from you of the capitols through which promised salvation is desperately hoped for, you are saddened by a sense of frustration.

But if you realize that the citadel of power is your own home and that yours is the majesty and sovereignty, sadness will be dispelled by gladness. To bring this transformation, you must comprehend the power of money and that you are the money power.  ~ E.C. Riegel, monetary theorist, in 1949.

Millions of people are making an important discovery – that life is about living- not consuming. A life of material sufficiency can be filled with social, cultural, intellectual, and spiritual abundance that places no burden on the planet. It is time to assume responsibility for creating a new human future of just and sustainable communities freed from the myth that greed, competition, and mindless consumption are paths to individual and collective fulfillment. It will take millions of people around the world – linked together into a powerful political coalition aimed at radical political and economic reform – to win the war that global capital is waging against us. David C. Korten, "When Corporations Rule the World",

Summary from Paul Grignon’s website…

Money as Debt is a 2006 animated documentary film by Canadian artist  and filmmaker Paul Grignon  

Today, most money is created as debt on a schedule by a borrower borrowing it into existence from a bank or other depository institution. This money is spent and circulated until someone puts it aside as savings or lends it a second time as existing money. Either way, as long as the money remains saved or lent, the money originally created as a loan from the bank is not available to the borrower that created it, except as another loan. The original money creation loan will be have to be paid off with the Principal of some other loan, making repayment of that loan dependent on another loan's Principal and so on, ad infinitum. Savings create an ongoing volume of Perpetual Debt for as long as the volume of savings remains unavailable to be earned on time by the borrowers that created it.

 Video Money as debt III Paul Grignon

In order for the current system to survive, the cycle of mass production of goods we don’t need, "trashing them and creating them again must go on forever" ...just to keep the thing going. Logic alone should tell us, even if 100% of the interest is recycled into the economy, the system is not sustainable in a real sense, since there is an end to goods and services produced in this way.

 The consequence of this debt based money supply, is that it is dependent upon 100% of the interest being recycled into the system to be earned again and repaid. If the money should go elsewhere, such as out of the country, more loans, derivatives, the financial economy or for convenience, a secondary lender, then the process of foreclosures, job loss, etc. skyrockets.

The process seems complicated, but Grignon, as he does very well in these films, simplifies this process for us. The massive bank credit, the debt based currency which is the bedrock of the economic order, is made up of currency which has a scheduled appointment to be extinguished. That 200k that was loaned for a mortgage now ceases to exist, and for stability the banks must loan it again. If this does not happen, this causes a system of deflation. Prices go down, but the money available to be earned also contracts, which makes paying fixed payments, such as loans, more difficult. It kicks off a wave not only of foreclosures, but of business failures, as we have seen in the latest saga since 2007. This is why the rich need welfare, in the form of bank bailouts, because otherwise they will not be able to replace the money lost and stabilize the system, since the banks can only create money off the back of a borrowers promise to repay, they cannot create it out of nothing. Now what happens if the banks do not cycle 100% of that interest back into the economy? The flow which allows the business cycle to happen falls short, and that creates the artificial cycle of boom and bust. The interest is not there to be earned, so foreclosures happen systemically, simply as a result of the arithmetic.

In this system we come to understand, since the central bank loans the government the currency in existence at interest, all money in existence whether cash or bank credit is based on debt. So if there was no debt, there would be no money. Since the interest increases with government debts over a very long period of time, the debt is essentially unpayable, just because of the math, and passed down to our future generations.

Many critics of the Federal Reserve System criticize the house of cards on the basis of the FED endlessly creating money. That is one angle of the problem, but it is only a small part of it. The real cycle and the consequences of the failure to maintain it, is in the fact that any bank can create credit from nothing, and by focusing on this fact Grignon firmly pins the tail on the donkey so to speak, in identifying the problems of our economic system. Essentially he helps us to understand that there is not merely fraud in banking, banking is fraud. [Go to the  BankersWorstFear.com and learn about bitcoins.

This is what is happening in the fall of 2015 with the E.U. {European Union of Countries}, their massive debt crisis and the bail-out of the E.U. countries like Greece. The real question is who gets the money and where is it …watch this video and see who gets the money. Most Countries in the EU do not want to play ball anymore as they are up to their ears in debt and their people cannot afford it… For the international bankers… their only answer is to get more people to buy stuff… sign for loans and create more debt to keep the cycle going…

 Enter Disaster Capitalism

Ø  What do the international Banker do… they stage another crisis… this time is with 2 million refuges coming from “The War Torn Middle East”… many who have already made their way to Europe with 800 thousand in Germany alone with the rest of the E.U. taking on a million people and North America Doing their share… The IMF will provide all the countries with more money to support the 2 million people for a year till they can get work… buy houses and all the things they need to support an affluent life style… this will require massive restructuring in most countries… many years and loss of the middle class and vast unemployment… which calls for more Security… more military and more weapons manufacturing to deal with battling the conflicting religious rights of the “Working Poor in their 9 to 5 wage slavery”… For Private Banking of the world’s elite this is the perfect world for fractional reserve banking… like “the energizer Bunny” it just keeps going and going when you apply “Disaster Capitalism” {watch the video}.  

  Animated Video:

 The amount of the Perpetual Debt can neither shrink nor slowdown in its delivery without causing mathematically inevitable defaults. Therefore new borrowing from banks must never decrease or slow down. Otherwise people will lose their homes because of a mathematical shortage of Principal.

Our money system is only functional when it is growing. It cannot handle shrinkage, or "de-growth" as some call it, without defaults. That makes it ill-suited even for normal economic mood swings which should be expected to be cyclical simply because everything in the Universe is cyclical.

The question always asked by politicians and economists is "What causes the business cycle?" as if it should be prevented. I say it's the wrong question. Accept the Business Cycle as natural and adapt to it.

 The question to ask is:

Why does inevitable cyclical economic shrinkage wreak so much harm? Is it because we have a money system that defies the Universal Laws of Nature? A money system dependent on never ending growth is absolutely suicidal in a world already in ecological overshoot.

Ø  “Anyone who believes exponential growth can go on forever in a finite world is either a madman or an economist.” Kenneth Boulding, economist, http://globetrotter.berkeley.edu/conversations/Boulding/kboulding-con0.html

“One thing to realize about our fractional reserve banking system is that, {it is an exponential function} like a child’s game of musical chairs, as long as the music is playing, there are no losers.” Andrew Gause, Monetary Historian, http://www.andygause.com/

 

{Disaster Capitalism just adds more children and more chairs from war-torn countries they created}. 

Money as Debt is a 2006 animated documentary film by Canadian artist  and filmmaker Paul Grignon  

Money as Debt, along with parts II and part III, and 4 and its follow-up “The Essence of Money”, present for us in an animated format the hidden smoke and mirrors not just of our economic system itself, but all the way down to the level of a local bank.  it is about the monetary systems practiced through modern banking.  The film presents Grignon's view of the process of money creation by banks and its historical background, and warns of his belief in its subsequent unsustainability. {Click on the Highlighted text to go to the videos on his website}.[The truth is most of the relending of the same money is generally defaulted by the borrower and not repaid]. {Go to “Moon Fire Studios” to see Money as Debt 3 Evolution beyond Money].

Part 3:  Financial Weapons of Mass Destruction:

The End of Fractional Reserve Banking?

A $516 trillion dollar bubble is a disaster waiting to happen {as of 2009, in 2015 it is over a 1000+ trillion dollars that will take down fractional reserve banking system over time}.

 This is a market in which the lead protagonists, typically aggressive, highly educated, and now wealthy young men have flourished in the derivatives boom as of October 2008. The market is worth more than $516 trillion, roughly 10 times the value of the entire world's output, and it's been called the "ticking time-bomb". It is a market that is set to come to a crashing halt… the Great Unwind has begun. However, what caused this disaster to begin, there must have been a reason for all this to happen? 

As the Market began to unwind in the beginning of October 2008 each financial analyst would state that the derivative market was behind the sub-prime mortgage lending dilemma and because the banks were stuck with too much toxic debt, the derivatives market would begin to unwind. Nevertheless, who started the sub-prime mortgage lending and why did the economic system collapse.

 As reported by Naomi Klein in the Nation.com… we have an answer, "Remember the "ownership society," a fixture of a majority of George W. Bush addresses for the first four years of his presidency?” We're creating...an ownership society in this country, where more Americans than ever will be able to open up their door where they live and say, welcome to my house, welcome to my piece of property," Bush said in October 2004. A Washington think-tanker Grover Norquist predicted that the ownership society would be Bush's greatest legacy, remembered "long after people can no longer pronounce or spell Fallujah." The idea was simple... if working-class people owned a small piece of the market... a home mortgage, a stock portfolio, a private pension… they would cease to identify as workers. They would start to see themselves as owners and with the same interests as their bosses. That meant they could vote for politicians promising to improve stock performance rather than job conditions. Class consciousness would be a relic. The ownership society's creation was central to the success of the right-wing economic revolution around the world." 

George W. Bush came to office determined to take these trends even further, to deliver Social Security accounts to Wall Street and target minority communities… traditionally out of the Republican Party's reach… for easy home ownership "Fewer than 50 percent of African Americans and Hispanic Americans own a home," Bush observed in 2002... "That's just too few.", he said. He called on Fannie Mae and the private sector "to unlock millions of dollars, to make it available for the purchase of a home";… an important reminder that sub-prime lenders were taking their cue straight from the top. However, in Bush's final State of the Union address, the once-ubiquitous phrase was conspicuously absent... and little wonder. Rather than its proud father, Bush has turned out to be the ownership society's undertaker (and the father of the greatest catastrophe the world has ever seen)."

A $516 trillion derivatives "time Bomb"

We can also see the fallout in excerpts from the British News agency, The Independent.co.uk/news - 2008-10-12 as reported By Margareta Pagano and Simon Evans", titled, "A $516 trillion derivatives "time Bomb". Last week the "beginning of the end started" for many hedge funds with the combination of diving market values and worried investors pulling out their cash for safer climes. Some of the world's biggest hedge funds – SAC Capital, Lone Pine and Tiger Global – all revealed they were sitting on double-digit losses this year. September's falls wiped out any profits made in the rest of the year. Polygon, once a darling of the London hedge fund circuit, last week said it was capping the basic salaries of its managers to £100,000 each. Not bad for the average manager but some way off the tens of millions plundered by these hotshots during the good times. However, few will be shedding any tears.

The complex and opaque derivatives markets in which these hedge funds played has been dubbed the world's biggest black hole because they operate outside of the grasp of governments, tax inspectors and regulators. They operate in a parallel, shadow world to the rest of the banking system. They are private contracts between two companies or institutions, which cannot be controlled or properly assessed. In themselves derivative contracts are not dangerous, but if one of them should go wrong… the bad 2 per cent as it's been called… then it is the domino effect which could be enormous and scary.

Most markets have something behind them. Central banks require reserves… something that backs up the transaction. However, derivatives don't have anything because they are not real money… just paper money. It is also impossible to establish their worth… the $516 trillion number is actually only a notional one. In the mid-Nineties, Nick Leeson lost Barings £1. 3billion trading in derivatives, and the bank went bust.  Even the traders, who are desperately trying to unwind their positions but finding it impossible because trading is so volatile, and it's difficult to find counter-parties. Nor had the hedge funds been in the slightest bit interested in succumbing to normal rules… of the world's thousands of hedge funds… only 24 have volunteered to sign up to a code of conduct.

Few understand how this world operates. The US Federal Reserve chairman, Ben Bernanke, tapped up some of Wall Street's best for a primer on their workings when he took the job a few years ago. Britain's financial regulator, the Financial Services Authority, has long talked about the problems the markets could face on the back of derivative complexity. Unfortunately, it did little to curb the products' growth.

 It is time to get out... watch video 

What is a Derivative?

 Anything that carries a price can spawn a derivatives market. They are financial contracts sold to pass on risk to others. The credit or bond derivatives market is one such example. It is thought that speculation in this area alone is worth more than $56 trillion (£33 trillion), although that probably underestimates the true figure since lax regulation has seen the market explode over the past two years. At the core of this market is the credit default swap,(CDS) effectively an insurance policy against the default in the interest payment on a corporate bond. One doesn't even need to own the bond itself. It is like Joe Public buying an insurance policy on someone else's house and pocketing the full value if it burns down.

On march 10th of 2008, Paul Farrell reported for Market Watch that," Buffett and Gross warn: $516 trillion bubble is a disaster waiting to happen. "Charlie and I believe Berkshire should be a fortress of financial strength" wrote Warren Buffett. That was five years before the subprime-credit meltdown. "We try to be alert to any sort of mega-catastrophe risk, and that posture may make us unduly appreciative about the burgeoning quantities of long-term derivatives contracts and the massive amount of uncollateralized receivables that are growing alongside. In our view, however, derivatives are financial weapons of mass destruction, carrying dangers that, while now latent, are potentially lethal." That warning was in Buffett's 2002 letter to Berkshire shareholders. He saw a future that many others chose to ignore. The Iraq war build-up was at a fever-pitch. The imagery of WMDs and a mushroom cloud fresh in his mind. Also fresh on Buffett's mind: His acquisition of General Re four years earlier, about the time the Long-Term Capital Management hedge fund almost killed the global monetary system. How? This is crucial: LTCM nearly killed the system with a relatively small $5 billion trading loss. Peanuts compared with the hundreds of billions of dollars of subprime-credit write-offs now making Wall Street's big shots look like amateurs. Buffett tried to sell off Gen Re's derivatives group. No buyers. Unwinding it was costly, but led to his warning that derivatives are a "financial weapon of mass destruction." That was 2002.

Derivatives bubble explodes five times bigger in five years

Wall Street didn't listen to Buffett. Derivatives grew into a massive bubble, from about $100 trillion to $516 trillion by 2007. The new derivatives bubble was fueled by five key economic and political trends:

1)     Sarbanes-Oxley increased corporate disclosures and government oversight

2)     Federal Reserve's cheap money policies created the subprime-housing boom

3)     War budgets burdened the U.S. Treasury and future entitlements programs

4)     Trade deficits with China and others destroyed the value of the U.S. dollar

5)     Oil and commodity rich nations demanding equity payments rather than debt

In short, despite Buffett's clear warnings, a massive new derivatives bubble is driving the domestic and global economies, a bubble that continues growing today parallel with the subprime-credit meltdown triggering a bear-recession.

Data on the five-fold growth of derivatives to $516 trillion in five years comes from the most recent survey by the Bank of International Settlements, the world's clearinghouse for central banks in Basel, Switzerland. The BIS is like the cashier's window at a racetrack or casino, where you'd place a bet or cash in chips, except on a massive scale… BIS is where the U.S. settles trade imbalances with Saudi Arabia for all that oil they guzzle and gives China IOUs for the tainted drugs and lead-based toys they buy.

To grasp how significant this five-fold bubble increase is, let's put that $516 trillion in the context of some other domestic and international monetary data:

Ø  U.S. annual gross domestic product is about $15 trillion

Ø  U.S. money supply is also about $15 trillion

Ø  Current proposed U.S. federal budget is $3 trillion

Ø  U.S. government's maximum legal debt is $9 trillion

Ø  U.S. mutual fund companies manage about $12 trillion

Ø  World's GDPs for all nations is approximately $50 trillion

Ø  Unfunded Social Security and Medicare benefits $50 trillion to $65 trillion

Ø  Total value of the world's real estate is estimated at about $75 trillion

Ø  Total value of world's stock and bond markets is more than $100 trillion

Ø  BIS valuation of world's derivatives back in 2002 was about $100 trillion

Ø  BIS 2007 valuation of the world's derivatives is now a whopping $516 trillion

The domino effect and the 'bad 2%'

However, while that may be true as far as the parties to an individual deal, there are broader risks to the world's economies. Remember back in 1998 when LTCM's little $5 billion loss nearly brought down the world's banking system. That "domino effect" is now repeating many times over, straining the world's monetary, economic and political system as the subprime housing mess metastasizes, taking the U.S. stock market and the world economy down with it. This cascading "domino effect" was brilliantly described in "The $300 Trillion Time Bomb: If Buffett can't figure out derivatives, can anybody?" published early in 2008 in Portfolio magazine, a couple months before the subprime meltdown. Columnist Jesse Eisinger's $300 trillion figure came from an earlier study of the derivatives market as it was growing from $100 trillion to $516 trillion over five years. Eisinger concluded:

"There's nothing intrinsically scary about derivatives, except when the bad 2% blow up." Unfortunately, that "bad 2%" did blow up a few months afterwards, even as Bernanke and Paulson were assuring America that the subprime mess was "contained." Bottom line: Little things leverage a heck of a big wallop. It only takes a little spark from a "bad 2% deal" to ignite this $516 trillion weapon of mass destruction. Think of this entire unregulated derivatives market like an unsecured, unpredictable nuclear bomb in a Pakistan stockpile. It's only a matter of time.

World's newest and biggest 'black market

The fact is, derivatives have become the world's biggest "black market," exceeding the illicit traffic in stuff like arms, drugs, alcohol, gambling, cigarettes, stolen art and pirated movies. Why? Because like all black markets, derivatives are a perfect way of getting rich while avoiding taxes and government regulations. And in today's slowdown, plus a volatile global market, Wall Street knows derivatives remain a lucrative business. Recently, Pimco's bond fund king Bill Gross said "What we are witnessing is essentially the breakdown of our modern-day banking system, a complex of leveraged lending so hard to understand that “Federal Reserve Bank” Chairman Ben Bernanke required a face-to-face refresher course from hedge fund managers in mid-August." In short, not only Warren Buffett, but Bond King Bill Gross, our Fed Chairman Ben Bernanke, the Treasury Secretary Henry Paulson and the rest of America's leaders can't "figure out" the world's $516 trillion derivatives. Why? Gross says we are creating a new "shadow banking system."

Derivatives are now not just risk management tools. As Gross and others see it, the real problem is that derivatives are now a new way of creating money outside the normal central bank liquidity rules. How?... because they're private contracts between two companies or institutions. BIS is primarily a records-keeper, a toothless tiger that merely collects data giving a legitimacy and false sense of security to this chaotic "shadow banking system" that has become the world's biggest "black market?" That's crucial, folks… Why? Because central banks require reserves like stock brokers require margins, something backing up the transaction… derivatives don't; they're not "real money." They're paper promises closer to "Monopoly" money than real U.S. dollars and it takes place outside normal business channels, out there in the "Capitalistic free market." That's the wonderful world of derivatives, and it's creating a massive bubble that could soon implode. 

Insurance companies and Credit Default Swaps (CDS)

The insurance companies are also being hit hard by CDS. The October 3rd Bloomberg article goes on to state: "The cost to protect against default by Hartford, Prudential Financial Inc. and MetLife Inc. soared to records and shares fell yesterday on speculation that turmoil in financial markets may be spreading to insurance companies."  As an article at Naked Capitalism explains: First, it was banks and securities firms, and now the focus of worry has widened to include insurance companies; where only companies seen as being in serious risk of failure trade on an upfront basis. The Treasury Department is dramatically expanding the scope of its bailout of the financial system with a plan to take ownership stakes in the nation's insurance companies, signaling new concerns about a sector of the economy whose troubles until now have been overshadowed by the banking industry, government and industry sources said. Insurers, including The Hartford, Prudential and MetLife, have pushed the Bush administration to include them in the plan.   

 The next phase of the Derivatives Wipe-out would hit auto makers:

From an article in George Washington's Blog we learn that:  "Initially, Standard and Poor's is saying that GM and Ford may very well go bankrupt. As of 2004, "GM was among the five companies most frequently included in credit-derivatives contracts in 2004, along with Ford Motor Co., France Telecom SA, DaimlerChrysler AG and Deutsche Telekom AG, Fitch said. 

 Bloomberg wrote: On October 3rd, 08

General Motors Corp. saw its credit default swaps rise to a record after the automaker said that it was going to draw down the remainder of a $4.5 billion revolving credit line to preserve cash because of the instability in the financial markets. Detroit-based GM, the largest U.S. carmaker, has lost almost $70 billion since 2004. As of June of 2008, "The cost to insure GM's debt with credit default swaps rose to 33.5 percent up-front . . . plus annual payments of 500 basis points" and "Ford saw its credit default swap spread increased to 30.5 percent upfront, plus 500 basis points annually". According to financial advisor Mike "Mish" Shedlock, there are approximately one trillion dollars of credit default swaps for GM. If GM went bust, there would be huge credit default swap liability. 

When Corporations Rule the World {in 2016}

Now to see the greater problem in detail… we are not just dealing with a few global bankers but millions of international Corporations with more power than the average Billionaire… So we need to only look to the superb reporting of author David C. Korten from this book, “When Corporations Rule the World”. In reading it, we learn…

“Thus corporations finally claimed the full rights enjoyed by individual citizens while being exempted from many of the responsibilities and liabilities of citizenship. Furthermore, in being guaranteed the same right to free speech as individual citizens, they achieved, in the words of Paul Hawken, ‘precisely what the Bill of Rights was intended to prevent: domination of public thought and discourse.’ The subsequent claim by corporations that they have the same right as any individual to influence the government in their own interest pits the individual citizen against the vast financial and communications resources of the corporation and mocks the constitutional intent that all citizens have an equal voice in the political debates surrounding important issues." This new individual citizen (corporation) is not conscious of its effect on society and the people at the helm: their duty is to focus on the money and their shareholders.

The ratification of the Fourteenth Amendment was meant to hold the US. Federal government accountable for the protection of African Americans, but corporations used the law’s loose language to deem themselves legally human. If corporations are protected under the law as living, breathing people, then this enthralling Canadian documentary, “The Corporation” sets out to tell us what kind of people they are. Directors Jennifer Abbott and Mark Achbar of the Movie documentary “The Corporation” state, “To more precisely assess the ‘personality’ of the corporate ‘person’, a checklist is employed, using actual diagnostic criteria of the World Health Organization and the DSM-IV, the standard diagnostic tool of psychiatrists and psychologists. The operational principles of the corporation give it a highly anti-social ‘personality’. It is self-interested, inherently amoral, callous and deceitful; it breaches social and legal standards to get its way; it does not suffer from guilt, yet it can mimic the human qualities of empathy, caring and altruism".

"Four case studies, drawn from a universe of corporate activity, clearly demonstrate harm to workers, human health, animals, and the biosphere. Concluding this point-by-point analysis, a disturbing diagnosis is delivered… the institutional embodiment of laissez-faire capitalism fully meets the diagnostic criteria of a ‘Psychopath’.” 

However, what is the ethical mindset of the individual corporate player? Should the institution or the individuals within it be held responsible for their destruction of the biosphere? It is my understanding that all human beings have within themselves the potential for a Christ-like consciousness as part of their natural evolution of consciousness connected to all life on this planet. Nevertheless, the corporation does not have a singular body or consciousness and the collective consciousness of its leaders give it a highly anti-social ‘personality’ and a World Health Organization… psychiatric diagnosis of a Psychopath… very self-absorbed… cut off from all life and the consequences of its own actions.  

 Let us hope that we can make a change in the consciousness of the masses and ourselves and that can only be achieved with conscious awareness of our physical environment with kindness, compassion, and love for our fellow human beings. The conscious ethical awareness of our own motives, our monetary needs, and our social/political environment is synonymous with our spiritual evolution. We are here to evaluate our role in society as one of a passive slave and victim of our monetary addiction or seen as innovative geniuses evolving a new form of co-operative business creativity that stimulates designs of sustainable Green technology. First, we have to learn what the Corporate Libertarians are doing to our economy and our ability to change our focus from fear and destruction to one of centeredness, family, and evolution in these fast moving times.

Assault of the Corporate Libertarians

If there were an Economist's Creed, it would surely contain the affirmations, "I believe in the Principle of Comparative Advantage," and "I believe in free trade." Paul Krugman, MIT economist, 1987. The following is excerpted from David C. Korten, "When Corporations Rule the World" (Kumarian Press and Berrett-Koehler Publishers, 1995). According to David C. Korten, in the quest for economic growth, free market ideology has been embraced around the world with the fervor of a fundamentalist religious faith. The beliefs espoused by free market ideologues are familiar to anyone conversant with the language of contemporary economic discourse. He states that:

Ø  Sustained economic growth, as measured by Gross National Product, is the path to human progress.

Ø  Free markets, unrestrained by government, generally result in the most efficient and socially optimal allocation of resources;

Ø  Economic globalization, achieved by removing barriers to the free flow of goods and money anywhere in the world, spurs 0competition, increases economic efficiency, creates jobs, lowers consumer prices, increases economic growth, and is generally beneficial to most everyone;

Ø  Privatization, which moves functions and assets from governments to the private sector, improves efficiency;

Ø  The primary responsibility of government is to provide the infrastructure necessary to advance commerce and assure the rule of law with respect to property rights and contracts;

Ø  International competition strengthens productive efficiency and provides consumers with greater choice at a lower cost.

These beliefs are based on a number of explicit underlying assumptions embedded in the theories of neoclassical economics.

Ø  Humans are motivated by self-interest expressed primarily through the quest for financial gain;

Ø  The action that yields the greatest financial return to the individual or firm is the one that is most beneficial to society;

Ø  Competitive behavior is more rational for the individual {wrong} and firmer than cooperative behavior and consequently societies should be built around the competitive motive;

Ø  Human progress is best measured by increases in the value of what the members of society consume and ever higher levels of consumer spending advance the well-being of society by stimulating greater economic output.  

To put it in harsher language, these ideological doctrines assume that:

Ø  People are by nature motivated primarily by greed;

Ø  The drive to acquire is the highest expression of what it means to be human;

Ø  The relentless pursuit of greed and acquisition leads to socially optimal outcomes;

Ø  It is in the best interest of human societies to encourage, honor, and reward these above other values.

           Korten shows us that a number of valid ideas and insights have become twisted into an extremist ideology that raises the baser aspects of human nature of a self-justifying ideal. Reminiscent of Marxist ideologues now passed from the scene, advocates of this extremist ideology seek to cut off debate by proclaiming the inevitability of the historical forces advancing their cause. They tell us that a globalized free market that leaves resource allocation decisions in the hands of giant corporations is inevitable, and we had best concentrate on learning how to adapt to the new rules of the game. 

    The enormous political success of the alliance in restructuring economic institutions in line with the corporate interest is creating a monster with whom even the members of the corporate class no longer control and a world they would scarcely wish to bequeath to their children.

         In the name of individual freedom, this alliance advances a doctrine that places the rights and freedoms of corporations ahead of the rights and freedoms of individuals acting through governments to hold corporations accountable for the public good. Their ideological doctrine is perhaps most accurately described as corporate libertarianism, because its consequence is to increase the freedom of corporations at the expense of human freedom. 

Economic Myths:

David Korten in his book, "When Corporations Rule the World", describes the illusionary economic myths that we live by without ever questioning any of them. In the late 1990's World Bank economist John Page told a meeting of Middle Eastern officials that the global economy is like the bullet train from Osaka to Tokyo: If you miss it, it's gone and there is no way to catch up. He urged them to get on board quickly by restructuring their economies. While Harvard Business School professor Rosabeth Kanter, in her book World Class, tells us that the future belongs to those who are willing to give up their loyalties to the community and nation to seek personal financial success in the global economy. She warns that those who remain loyal to people and places will be left behind. And Business Week tells us that the leading example of what a global free market economy has made possible is the East Asia economy where the number of non-Japanese multimillionaires is expected to double from 400,000 in 1993 to 800,000 in 1996. "There are new markets for everything from Mercedes Benz cars to Motorola mobile phones to Fidelity mutual funds. . . . To find the nearest precedent, you need to rewind U.S. history 100 years to the days before strong unions, Securities watchdogs, and antitrust laws." Scant mention is made of the fact that free market economies have also left 675 million Asian's living in absolute deprivation.         

       We should be more than skeptical about an economic model that calls on us to give up all loyalty to place and community. It says we must give free reign to securities fraud and corporate monopolies and deny workers the right to organize. Moreover, this free market economy tells the poor to run faster and faster after a train, they have no chance of catching so that a few hundred thousand people can become multi-millionaires by destroying nature and depriving others of a decent means of livelihood.

         Millions of people around the world are no longer buying into this monumental fraud against humanity... and their numbers are growing. We are coming to realize... the extravagant promises of the advocates of the global economy are based on a number of myths that have become so deeply embedded in Western industrial culture so much, as we have grown to accept them without examination.

Ø  The myth that growth in GNP is a valid measure of human well-being and progress.

Ø  The myth that free unregulated markets efficiently allocate a society's resources.

Ø  The myth that growth in trade benefits ordinary people.

Ø  The myth that economic globalization is inevitable.

Ø  The myth that global corporations are benevolent institutions that if freed from governmental interference will provide a clean environment for all and good jobs for the poor.

Ø  The myth that absentee investors create local prosperity.

Let's Take The Growth Myth.

 Our measures of growth are deeply flawed in that they are purely measures of activity in the monetized economy.

Ø  Expanded use of cigarettes and alcohol increases economic output both as a direct consequence of their consumption and because of the related increase in health care needs.

Ø  The need to clean up oil spills generates economic activity.

Ø  Gun sales to minors generate economic activity.

Ø  A divorce generates both lawyer's fees and the need to buy or rent and outfit a new home-increasing real estate brokerage fees and retail sales.

           It is now well documented that in the United States and a number of other countries the quality of living of ordinary people has been declining as aggregate economic output increases. The growth myth has another serious flaw. Since 1950, the world's economic output has increased 5 to seven times. That growth has already increased the human burden on the planet's regenerative systems-its soils, air, water, fisheries, and forestry systems-beyond what the planet can sustain. Continuing to press for economic growth beyond the planet's sustainable limits does two things. It accelerates the rate of breakdown of the earth's regenerative systems, as we see so dramatically demonstrated in the case of many ocean fisheries, and it intensifies the competition between rich and poor in the resource base that remains.

          The disparities in this competition have become truly obscene. In 1960, the annual compensation of the average CEO of a major US company was 40 times that of the average worker. In 1992, it was 157 times as much. The average CEO of a large corporation as of 1995 receives an annual compensation package of more than $3.5 million, their reward for growing company profits by destroying millions of jobs.

           From 1992 to 1995, the profits of the Standard and Poor's 500 largest corporations have grown an average of 20% a year. Stock prices are at record highs. For the most part, these gains went to people who have nothing better to do with their money than gamble on price movements in the giant global casino we call a stock market. During 1995, wages, salaries and benefits, compensation for doing real work, increased only 2.7%, the smallest rise on record.

          All too often what growth in GNP really measures is the rate at which the economically powerful are expropriating the resources of the economically weak in order to convert them into products that all too quickly become the garbage of the rich.

Take The Myth Of Free Unregulated Markets.

 It is almost inherent in the nature of markets that their efficient function depends on the presence of a strong government to set a framework of rules for their operation. For example we know that free markets create monopolies, which government must break up to maintain the conditions of competition on which market function depends. 

We also know that markets only allocate efficiently when prices reflect the full and true costs of production. However, in the absence of governmental regulation, market incentives persistently push firms to cut corners on safety, pay workers less than a living wage, and dump untreated toxic discharges into a convenient river. In our present competitive context if management does not take such measures, they are likely to be replaced by the owners or bought out by someone with fewer scruples who will.

Once upon a time local communities looked to corporations not only as sources of jobs, but as well of tax revenue to help cover the costs of essential local infrastructure and public services. For example, in 1957, corporations in the United States provided 45 percent of local property tax revenues. By 1987, their share had dropped to about 16 percent.

Local governments are now forced by the dynamics of global competition not only to give most large corporations tax breaks, but as well to directly subsidize their operations with public funds. The business press for its successful competitive bid for a new BMW auto plant has praised South Carolina. The company was attracted in part by cheap, non-union labor and tax concessions. In addition, when BMW said it favored a 1,000-acre tract on which a large number of middle class homes were already located, the state spent $36.6 million to buy the 140 properties, destroyed the homes, and leased the site back to the company at a $1 a year. The state also picked up the costs of recruiting, screening, and training workers for the new plant, and raised an additional $2.8 million from private sources to send newly hired engineers for training in Germany. The total cost to the South Carolina taxpayers for these and other subsidies to attract BMW will amount to $130 million over thirty years.

This is what global competition is really about – local communities and workers competing against one another to absorb more of the production costs of the world's most powerful and profitable corporations. The company reaps handsome profits. The local people bear the costs. Economists applaud the company's contribution to national output and export earnings. And the winners in the global economy are able to buy their gold trinkets at a more attractive price. The one thing at which free, unregulated markets are truly efficient is in transferring wealth from the many to the few.

The Myth of Free Trade  

Many so-called trade agreements, such as the North American Free Trade Agreement (NAFTA) and the General Agreement on Tariffs and Trade (GATT), are not really trade agreements at all. They are economic integration agreements intended to guarantee the rights of global corporations to move both goods and investments where ever they wish-free from public interference and accountability. GATT is best described as a bill of rights for global corporations.

 The Myth That Economic Globalization Is Inevitable

Many of the people who claim globalization is a consequence of inevitable historical forces are paid to promote that message by the same global corporations that have invested millions of dollars in advancing the globalization policy agenda. Economic globalization is inevitable only so long as we allow the world's largest corporations to buy our politicians and write our laws.

The Myth That Corporations Are Benevolent Institutions.

The corporation is an institutional invention specifically and intentionally created to concentrate control over economic resources while shielding those who hold the resulting power from liability for the consequences of its use. The more national economies become integrated into a seamless global economy, the further corporate power extends beyond the reach of any state and the less accountable it becomes to any human interest or institution other than a global financial system that is now best described as a gigantic legal gambling casino.

The Myth That Absentee Investors Create Local Prosperity.

Absentee investors are attracted by perceived opportunities to turn a quick profit-not to benefit a worthy local community. Though they do have real world consequences, most of what we call "international capital flows" are little more than movements of electronic money from one computer account to another in a high-stakes poker game. Economic globalization expands the opportunities for corporations to go about their business of concentrating wealth, and from the corporate perspective, it has been a brilliant success. The Fortune 500 corporations shed 4.4 million jobs between 1980 and 1993-while

Ø  Increasing their sales by 1.4 times

Ø  Their assets by 2.3 times

Ø  And CEO compensation by 6.1 times

Ø  These same corporations now employ only 1/20th of 1% of the world's population,

Ø  but they control 25% of the world's economic output

Ø  And 70% of world trade.

According to The Economist magazine in each of seven major industries (consumer durables, automotive, airliners, aerospace, electronic components, electrical and electronic, and steel) only five firms, control more than 50% of the total global market, which qualifies them for the label of "highly monopolistic". In addition, the consolidation continues. The value of worldwide corporate mergers and acquisitions completed in 1995 exceeded the total for any previous year by some 25%. Faceless bankers now move two trillion dollars around the world every day, searching for quick profits, breaking national economies and putting ever more pressure on natural wealth. What has to be done… 

Slay the beast of capitalism & return money to its proper role.” {In Public Banking}

Millions of people are making an important discovery – that life is about living- not consuming. A life of material sufficiency can be filled with social, cultural, intellectual, and spiritual abundance that places no burden on the planet. It is time to assume responsibility for creating a new human future of just and sustainable communities freed from the myth that greed, competition, and mindless consumption are paths to individual and collective fulfillment. It will take millions of people around the world – linked together into a powerful political coalition aimed at radical political and economic reform – to win the war that global capital is waging against us. David C. Korten, "When Corporations Rule the World",

        As it stands now things may not change for the better for us common people. As a political theorist Michael Parenti points out, historians often overlook Corporate Fascism's economic agenda; the partnership between Big Capital and Big Government... in the analysis of its authoritarian social program. Indeed, according to Bertram Gross in his Book," Friendly Fascism: The New Face of Power in America," South End Press, 1998. It is possible to achieve fascist goals within an ostensibly democratic society. This is the goal of the bush administration and has been for eight years. In addition, According to journalist, Richard Heinberg, "Corporations themselves, after all, are internally authoritarian. Courts have ruled that citizens give up their constitutional rights to free speech, freedom of assembly, etc., when they are at work on corporate-owned property. Furthermore, as corporations increasingly dominate politics, media and economy, they can mold an entire society to serve the interests of powerful elite without ever resorting to storm troopers and concentration camps. No deliberate conspiracy is necessary, either: each corporation merely acts to further its own economic interests. If the populace shows signs of restlessness, politicians can be hired to appeal to racial resentments and memories of national glory, dividing popular opposition and inspiring loyalty".

           He goes on to say, "In the current situation", friendly fascism" works somewhat as follows. Corporations drive down wages and pay a dwindling share of taxes gradually impoverishing the middle class and creating unrest. As corporate taxes are cut, politicians (whose election was funded by corporate donors) argue that it is necessary to reduce government services in order to balance the budget. Meanwhile, the same politicians argue for an increase in the repressive functions of government (more prisons, harsher laws, more executions, and more military spending). Politicians channel the middle class's rising resentment away from corporations and toward the government (which, after all, is now less helpful and more repressive than it used to be) and against social groups easy to scapegoat (criminals, minorities, teenagers, women, gays, immigrants). Currently, debate in the media is kept superficial (elections are treated as sporting contests), and right-wing commentators are subsidized while left-of-center ones are marginalized. People who feel cheated by the system turn to the Right for solace, and vote for politicians who further subsidies corporations, cut government services, expand the repressive power of the state and offer irrelevant scapegoats for social problems with economic roots. The process feeds on itself."

 Part 4: The Rise of Disaster Capitalism

 

Naomi Klein: The Shock Doctrine: The Rise of Disaster Capitalism

We started this chapter with the superb reporting of author David C. Korten from this book, “When Corporations Rule the World” and learned that, corporations finally claimed the full rights enjoyed by individual citizens while being exempted from many of the responsibilities and liabilities of citizenship. How their Economic Myths of free Market Ideologies have become twisted into an extremist ideology that raises the baser aspects of human nature.

Now we turn our eyes to the brilliant works of Naomi Klein and her book, "The Shock Doctrine: The Rise of Disaster Capitalism." and learn what these corporations are doing in the 21st Century and for the past 35 years. Naomi Klein is an award-winning journalist, the best-selling author of "No Logo" and the co-director of the real life movie of a South American town, called the "The Take". 

"The history of the contemporary free market was written in shocks." She argues that "Some of the most infamous human rights violations of the past thirty-five years, which have tended to be viewed as sadistic acts carried out by anti-democratic regimes, were in fact either committed with the deliberate intent of terrorizing the public or actively harnessed to prepare the ground for the introduction of radical free-market reforms." 

Pinochet's coup in Chile; The massacre in Tienanmen Square; The collapse of the Soviet Union; September 11th, 2001; The war on Iraq; The Asian tsunami and Hurricane Katrina; Award-winning investigative journalist Naomi Klein brings together all of these world-changing events in her new book, "The Shock Doctrine. Klein writes, Economist Milton Friedman once said, "Only a crisis produces real change. When that crisis occurs, the actions that are taken depend on the ideas that are lying around. "Naomi Klein examines some of what she considers the most dangerous ideas - Friedmanite economics -- and exposes how catastrophic events are both extremely profitable to corporations and have also allowed governments to push through what she calls "disaster capitalism."

"Naomi Klein states that, "the shock doctrine, like all doctrines, is a philosophy of power. It’s a philosophy about how to achieve your political and economic goals. And this is a philosophy that holds that the best way, the best time, to push through radical free-market ideas is in the aftermath of a major shock. Now, that shock could be an economic meltdown. It could be a natural disaster. It could be a terrorist attack. It could be a war. However, the idea, is that these crises, these disasters, these shocks soften up whole societies. They bewilder them... people lose their bearings... a window opens up, just like the window in the interrogation chamber and in that window, you can push through what economists call “economic shock therapy.” That’s sort of extreme country makeovers... it’s everything all at once. It’s not, you know, one reform here, one reform there, but the kind of radical change that we saw in Russia in the 1990s, that Paul Bremer tried to push through in Iraq after the invasion. So that’s the shock doctrine. And it’s not claiming that right-wingers in a contemporary age are the only people who have ever exploited crisis, because this idea of exploiting a crisis is not unique to this particular ideology. Fascists have done it. State communists have done it. Nevertheless, this is an attempt to better understand the ideology that we live with, the dominant ideology of our time, which is unfettered free market economics”.

 Disaster Capitalism

 Next, I have excerpts from an Article written for "The Nation.com" by Naomi Klein called "the Rise of Disaster Capitalism. For anyone wanting to know what is really going on in free market economics I highly recommend Naomi Klein's book, "The Shock Doctrine" but if you want to research this idea on the net, you can find articles on the web at Http://www.thenation.com/doc/20050502/klein. 

The World Bank and the International Monetary Fund have been imposing shock therapy on countries in various states of shock for at least three decades, most notably after Latin America's military coups and the collapse of the Soviet Union. Yet many observers say that today's disaster capitalism really hit its stride with Hurricane Mitch. For a week in October 1998, Mitch parked itself over Central America, swallowing village's whole and killing more than 9,000. Already impoverished countries were desperate for reconstruction aid… and it came, but with strings attached. In the two months after Mitch struck, with the country still knee-deep in rubble, corpses and mud, the Honduran congress initiated what the Financial Times called "speed sell-offs after the storm." It passed laws allowing the privatization of airports, seaports and highways and fast-tracked plans to privatize the state telephone company, the national electric company and parts of the water sector. It overturned land-reform laws and made it easier for foreigners to buy and sell property. It was much the same in neighboring countries: In the same two months, Guatemala announced plans to sell off its phone system, and Nicaragua did likewise, along with its electric company and its petroleum sector.

Latin America’s Shock Resistance

For the past thirty-five years, Naomi Klein explains that, "in Latin America, such shocks from outside have served to create the political conditions required to justify the imposition of "shock therapy"… the constellation of corporate-friendly "emergency" economic measures like large-scale privatizations and deep cuts to social spending that debilitate the state in the name of free markets. In one of his most influential essays, the late economist Milton Friedman articulated contemporary capitalism's core tactical nostrum, what I call the shock doctrine. He observed, "Only a crisis… actual or perceived… produces real change. When that crisis occurs, the actions that are taken depend on the ideas that are lying around."

Latin America has always been the prime laboratory for this doctrine.  Klein explains that it was Economist Milton Friedman who first learned how to exploit a large-scale crisis in the mid-1970s, when he advised Chilean dictator Gen. Augusto Pinochet. Not only were Chileans in a state of shock following Pinochet's violent overthrow of Socialist President Salvador Allende; the country was also reeling from severe hyperinflation. Friedman advised Pinochet to impose a rapid-fire transformation of the economy… tax cuts, free trade, privatized services, cuts to social spending and deregulation. It was the most extreme capitalist makeover ever attempted, and it became known as a Chicago School revolution, since so many of Pinochet's top aides and ministers had studied under Friedman at the University of Chicago. A similar process was under way in Uruguay and Brazil, also with the help of University of Chicago graduates and professors, and a few years later, in Argentina. These economic shock therapy programs were facilitated by far less metaphorical shocks… performed in the region's many torture cells, often by US-trained soldiers and police, and directed against those activists who were deemed most likely to stand in the way of the economic revolution. 

In Latin America today, however, new crises are being repelled and old shocks are wearing off… a combination of trends that is making the continent not only more resilient in the face of change but also a model for a future far more resistant to the shock doctrine.

When Milton Friedman died in November 2006, the global quest for unfettered capitalism he helped launch in Chile three decades earlier found itself in disarray. The obituaries heaped praise on him, but many were imbued with a sense of fear that Friedman's death marked the end of an era. In Canada's National Post, Terence Corcoran, one of Friedman's most devoted disciples, wondered whether the global movement the economist had inspired could carry on. Friedman's intellectual heirs in the United States… the think-tank neocons who used the crisis of September 11 to launch a booming economy in privatized warfare and "homeland security"… were at the lowest point in their history.

 Today Latin Americans are picking up the project that was so brutally interrupted all those years ago. Many of the policies cropping up are familiar: nationalization of key sectors of the economy, land reform, major investments in education, literacy and healthcare. These are not revolutionary ideas, but in their unapologetic vision of a government that helps reach for equality, they are certainly a rebuke to Friedman's 1975 assertion in a letter to Pinochet that "the major error, in my opinion, was... to believe that it is possible to do well with other people's money."

Disaster Capitalism has come to America.

 Disaster Capitalism had failed in South America by 2001, let's see what the Bush Administration has been doing to expand it into America. In the excerpts from an article to Nation.com, 11/2007, called "Rapture Rescue 911: Disaster Response for the Chosen"   Klein wrote  "I used to worry that the United States was in the grip of extremists who sincerely believed that the Apocalypse was coming and that they and their friends would be airlifted to heavenly safety. I have since reconsidered. The country is indeed in the grip of extremists who are determined to act out the biblical climax; the saving of the chosen and the burning of the masses; but without any divine intervention; heaven can wait. Thanks to the booming business of privatized disaster services, we're getting the Rapture right here on earth".

  Klein goes on to say," Just look at what is happening in Southern California. Even as wildfires devoured whole swaths of the region, some homes in the heart of the inferno were left intact, as if saved by a higher power. But it wasn't the hand of God; in several cases it was the handiwork of Firebreak Spray Systems. Firebreak is a special service offered to customers of insurance giant American International Group (AIG)--but only if they happen to live in the wealthiest ZIP codes in the country. Members of the company's Private Client Group pay an average of $19,000 to have their homes sprayed with fire retardant. During the wildfires, the "mobile units"--racing around in red fire trucks--even extinguished fires for their clients." During last year's hurricane season, Florida homeowners were offered similarly high-priced salvation by HelpJet, a travel agency launched with promises to turn "a hurricane evacuation into a jet-setter vacation." For an annual fee, a company concierge takes care of everything: transport to the air terminal, luxurious travel, bookings at five-star resorts. Most of all, HelpJet is an escape hatch from the kind of government failure on display during Katrina. "No standing in lines, no hassle with crowds, just a first class experience."

Blackwater USA, CEO, Erik Prince, wrote recently of his plans to offer "full spectrum" services, including humanitarian aid in disasters. When fires broke out in San Diego County, near the proposed site of the controversial Blackwater West base, the company immediately seized the opportunity to make its case.  To show off its capacity, Blackwater has been distributing badly needed food and blankets to people of Potrero, California. Actually, what Blackwater does, as Iraqis have painfully learned, is not protect entire communities or countries but "protect the principal"… the principal being whoever has paid Blackwater for its guns and gear.

We can see clearly here from Naomi Klein's investigating reporting that the corporate backed Bush Government has plans for "Saving America" from disaster in the near future. The only real growth in the market in these recessionary times is in Security and Disaster response companies that have been privately funded by the corporate backed Bush Government. They have invested billions of dollars in these new firms that since 2001 have been contracted by the government to help out in hurricane disaster response, what do they know that we don't? One can only wonder what these nongovernmental organizations will be doing to stimulate business in the new Era of Disaster Capitalism after their contracts run out.

The worst-case scenario was that these people were pushing for a "One World Order" for international corporations to run their newly structured governments in a "New Free Market Economy" where the common people foot the bill for corporate restructuring. These corporations needed a North America Union of Canada, The US and Mexico to promote the corporate movement of foods and goods in and out of our domestic borders without the interference of environmental patriotic intellectuals. The staging for this event was planned for the fall and winter of 2011, after the final collapse of the economy and a number of natural disasters the will Shock the people into compliance.  

If all you've got is $2,200, in this world, you're Rich… in this world

   A global study reported by Thomas Kostigen for Market Watch reveals an overwhelming wealth gap, with the world's three richest people having more money… than the poorest 48 nations combined. The study's authors defined net worth… as the value of people's physical and financial assets… fewer debts. The research indicates that assets of just $2,200 per adult place a household in the top half of the world’s wealthiest. The richest 2% of the world's population owns more than half of the world's household wealth. For the first time, personal wealth… not income… has been measured around the world. The findings may be surprising, for what makes people "wealthy" across the world spectrum is a relatively low bar. To be among the richest 10% of adults in the world, just $61,000 in assets is needed. If you have more than $500,000, you're part of the richest 1%, the United Nations study says. Indeed, 37 million people now belong in that category. Sure, you can now be proud that you're rich. Nevertheless, take a moment to think about it, and you'll probably come to realize that the meaning behind these numbers is harrowing. For if it takes just a couple of thousand dollars to qualify as rich in this world, imagine what it means to be poor.

Half of the World… live on less than $2 a day

Half the worlds, nearly 3 billion people, live on less than $2 a day. The three richest people in the world… Microsoft Chairman Bill Gates, investor Warren Buffett and Mexican telecom mogul Carlos Slim Helú … have more money than the poorest 48 nations combined. Meanwhile, "many people in high-income countries have a negative net worth and somewhat paradoxically are among the poorest people in the world in terms of household wealth." The world's total wealth is valuated at $125 trillion. Although North America has only 6% of the world's adult population, it accounts for 34% of household wealth. 

 An Integral Vision of a Material World 

  Now, from a corporate view to a real world view; what does the real world look like beyond what the corporate controlled and sponsored television news tell us it is. The Integral Vision in the World at Large, from Ken Wilber’s book “A Theory of Everything”: In his book, he states:

“Let me drive this point home using calculations done by Dr. Phillip Harter of Stanford University School of Medicine. If we could shrink the earth’s population to a village of only 100 people, it would look something like this: There would be:

57 Asians

21 Europeans

14 North and South Americans

  8 Africans

30 White

70 Non-white

  6 people would possess 59% of the world’s wealth; all 6 would be from the U.S.

80 would live in substandard housing

70 would be unable to read

50 would suffer malnutrition

  1 would have a college education

  1 would own a computer

If we just take a moment to become an observer and contemplate what we are learning, we begin to see a big picture of what we are doing to each other. If this were a portrait of your life as one of the majority of the villagers, you would not be able to read this or to voice your opinion, protect your rights or write your congressional representative in a democratic society. Your focus in life would be on basic survival food, water, clothing and better living conditions. It seems to me that in this scenario of the earth’s population shrunk to a village of just 100 people, the six Americans would own the banks, the food store, the armories and the liquor stores, and a two room school house...  two Asians would have the computer and the college education.”

A Final Word of Warning from Great Men of the  20th Century!

Let us look backward in time... seeing what free conscious great men of history had to say about the state of the union in America. These Great men of history consciously spoke the truth as far back as 200 years ago about present conditions of life and the lack of consciousness in society. Everything stands in balance waiting for us to wake up, stand up, and consciously speak our truth. To speak our truth, we have to know the truth, to be fully conscious we have to be Truly Free, for the right to freedom is the gift of God, and God is in everyone and everything.

They Told the Truth:

 Johann W. Von Goethe was the first to tell me, “None are more hopelessly enslaved than those who falsely believe they are free.”

William E. Simon next said, “Freedom is strangely ephemeral. It is something like breathing; one only becomes acutely aware of its importance when one is choking.” Secretary of the Treasury (Nixon & Ford) A Time for Truth, 1978.

Benjamin Franklin: “They that can give up essential liberty to obtain a little temporary safety deserve neither liberty nor safety.”

Brock Chisolm: “To achieve world government, it is necessary to remove from the minds of men, their individualism, and loyalty to family traditions, national patriotism and religious dogmas.” Former Director of the World Health Organization. 

John Swinton (former Chief of Staff) said in a 1953 speech before the New York Press Club: “There is no such thing, at this date of the world’s history in America, as an independent press. You know it and I know it. There is not one of you who dare to write your honest opinions, and if you did, you know beforehand that it would never appear in print. I am paid weekly for keeping my honest opinion out of the paper I am connected with. Others of you are paid similar salaries for similar things, and any of you who would be so foolish as to write honest opinions would be out on the street looking for another job. If I allowed my honest opinions to appear in one issue of my paper, before twenty-four hours my occupation would be gone. The business of the journalist is to destroy the truth; to lie outright; to pervert; to vilify; to fawn at the feet of mammon, and to sell his country and his race for his daily bread. You know it and I know it and what folly is this toasting an independent press? We are the tools and vassals of rich men behind the scenes, we are the jumping jacks, they pull the strings and we dance. Our talents, our possibilities, and our lives are all the property of other men. We are intellectual prostitutes.”

Samuel Adams: “The right to freedom being the gift of God, it is not in the power of man to alienate this gift and voluntarily become a slave.”

Edmund Burke: “The true danger is when liberty is nibbled away, for expedients, and by parts..... The only thing necessary for evil to triumph is for good men to do nothing.”

 President Ronald Reagan said, “Our federal tax system is, in short, utterly impossible, utterly unjust and completely counterproductive [it] reeks with injustice and is fundamentally un-American... it has earned a rebellion and it's time we rebelled.” May 1983, Williamsburg, 

Rep. McFadden testified in Congress (1933).  “The Great Depression, resulting from the Stock Market crash, was not accidental. It was a carefully contrived occurrence....The international bankers sought to bring about a condition of despair here so they might emerge as rulers of us all.” There were at least two attempts on his life by gunfire. He died of suspected poisoning after attending a banquet.

Thomas Jefferson says: “I know of no safe depository of the ultimate powers of society but the people themselves, and if we think them not enlightened enough to exercise control with a wholesome discretion, the remedy is not to take it from them, but to inform their discretion.”  

The Ending of the Pathology of Commerce

  From the information presented here it is easy to see that our collective goal in life as a "progressive Society", paint a picture of us, maintaining the illusions society wants us to believe is the natural course of events and that the people will benefit if they will only listen to Corporate reason. What is good for the corporation is good for the people and that when we make a mistake as in the sub-prime mortgage crisis, everyone needs to chip in and help pay the dues for our economic growth and well-being? This is the dark side of the corporate "psychopaths" and paints a very dark future… one of corporate power over others, survival and greed… we are in for very difficult times ahead if we do not change our course.  It is obvious here that the whole economic system is corrupt, our elected corporate-sponsored and controlled politicians… all corrupt. We have here a system of Lies, all based on a certain system of convenient myths to impose necessary illusions to control the masses.  The whole economic system seems to be spiraling out of control because the Derivatives market… and has to be reformed as a natural part of our evolution cycle of life and not at the discretion of the people who own the world.  

 Noam Chomsky: This Possibly Terminal Phase of Human Existence

  The last opinion on the state of the world is from someone who has been standing up and speaking out for the average citizen for more than 60 years, one of the 20th Century’s Greatest Thinkers, controversial author, linguist, and radical philosopher, Noam Chomsky. As an outspoken critic of the press and one of America's leading dissidents, he has unrelentingly dissected how our much-acclaimed democratic freedoms often mask an irresponsible use of power.  He encourages his listeners to extricate themselves from this “web of deceit” by undertaking a course of “intellectual self-defense.” Chomsky states, “My personal feeling is that citizens of the democratic societies should undertake a course of intellectual self-defense to protect themselves from manipulation and control, and to lay the basis for more meaningful democracy.

            “... the issue is whether we want to live in a free society or whether we want to live under what amounts to a form of self-imposed totalitarianism, with the [people] marginalized, directed elsewhere, terrified, screaming patriotic slogans, fearing for their lives, and admiring with awe the leader who saved them from destruction, while the educated masses goose-step on command and repeat the slogans they’re supposed to repeat and the society deteriorates at home. We end up serving as a mercenary enforcer state, hoping that others are going to pay us to smash up the world.” From the book “Media Control”

 “….Modern industrial civilization has developed within a certain system of convenient myths. The driving force of modern industrial civilizations has been individual material gain which is accepted as legitimate, even praiseworthy on the grounds that private vices yield public benefits in the classic formulation. Now it’s long been understood, very well, that a society that is based on this principle will destroy itself in time. It can only persist with whatever suffering and injustice that it entails as long as it’s possible to pretend that the destructive forces that humans create are limited; that the world is an infinite resource and that the world is an infinite garbage can…”     Noam Chomsky, From his book “Manufacturing Consent”

  “… At this stage of history, either one of two things is possible. Either the general population will take control of its own destiny and concern itself with community interests guided by values of solidarity, sympathy and concern for others. Or alternatively there will be no destiny for anyone to control. As long as some specialized class is in a position of authority it's going to set policy in the special interest that it serves. But the conditions of survival, let alone justice, require rational social planning in the interest of community as a whole, and by now that means the global community. The question is whether privileged elites should dominate mass communication and should use this power as they tell us they must; “Namely to impose Necessary Illusions”; To manipulate and deceive the stupid majority and remove them from the public arena. The question in brief, is whether democracy and freedom are values to be preserved or threats to be avoided. In this possibly terminal phase of human existence, democracy and freedom are more than values to be treasured, they may well be essential to survival.”-“Manufacturing Consent”

 

 

 

Robert Donald Tonelli, Author Science of Spirit

Robert Donald Tonelli… Author of Science of Spirit… is Owner / Researcher / Consultant for Neurotech Research: Science of Bioelectrical Wellness and has been in business researching health…nutrition and spiritual matters since 1992. Neurotech has produced 10 research reports on health & wellness of Body, Mind, & Spirit... From this research and experience, he has published this book, Science of Spirit, Analogical Mind & the Evolution of Consciousness. A new mindset connecting human beings to the global evolution of consciousness that is responsible for the accelleration of life on this planet. He evolved Neurotech Research from an ongoing investigation of over the past 25 years… from studies of longevity… neuroscience… and alchemy. Rob has devoted most of his life to his research; from Science to Spirit from Reason to Faith... finding Truth along the way…