The Financial Jigsaw – Issue No. 22

My unpublished (100,000 word) book “The Financial Jigsaw”, is being serialised here weekly in 100 Issues by Peter J Underwood, author 

NOTE: I am posting a day early this week because I will be out-of-range on Saturday 

We have now completed the Chapter about central banking and we move on to government financing; here is the link to last week:  Issue 21  

In the past there have been many attempts by governments to print their own money instead of borrowing it at interest from the bankers which keeps them continually indebted.  The American Constitution in fact authorises the government to create their own money free of interest and several administrations actually managed this effectively and without the projected inflation that the bankers always falsely claimed will occur.  Several past presidents have fought the bankers to keep control of the currency but all failed in the end and since 1913, with the formation of the Federal Reserve, (which is neither ‘federal’ nor holds ‘reserves’), the government finally gave in to the bankers money system which is described in the coming Issues. 

A wonderful book, by Ellen Brown, detailing the history of government-issued money is:

https://www.amazon.co.uk/Web-Debt-Shocking-Truth-System/dp/0983330859  

CHAPTER 5

GOVERNMENT FINANCES 

“Government is not reason, it is not eloquence – it is a force! Like fire, it is a dangerous servant and a fearful master; never for a moment should it be left to irresponsible action.”

George Washington

It has been many years since I read George Orwell’s Animal Farm, but the message conveyed in it will remain with me forever.  The book is a portrayal and critique of human nature and the political systems that people create. For those that need a reminder, or have not read the book, here is the basic plot.

There is a farm run by a Mr. Jones, who drinks so much he becomes unable to take care of the farm and feed his animals.  Eventually the animals, (in particular the pigs), decide human beings are parasites and the pigs lead a revolt and chase Mr. Jones off his property.  They change the farm’s name from ‘Manor Farm’ to ‘Animal Farm’ and create a list of seven commandments.  They are:

  • Whatever goes upon two legs is an enemy.
  • Whatever goes upon four legs, or has wings, is a friend.
  • No animal shall wear clothes.
  • No animal shall sleep in a bed.
  • No animal shall drink alcohol.
  • No animal shall kill any other animal.
  • All animals are equal.

In a short space of time the pigs assume leadership over the farm and one pig in particular, Napoleon, consolidates power after running his primary competitor off the property.  It is not long before the pigs begin to walk on two legs, drink alcohol, sleep in beds and generally act like humans. Recognising that their new lifestyle is contrary to the inspirations listed in their original seven commandments; they simply decide to make up some new ones:

  • No animal shall sleep in a bed with sheets.
  • No animal shall drink alcohol to excess.
  • No animal shall kill any other animal without cause.

Before long even these adjustments become too binding for the gluttonous and power-hungry pig, oligarch class.  They decide to condense everything down into one commandment:

All animals are equal, but some animals are more equal than others

This process describes what has happened to governments all over the world, and which has especially accelerated since the 2008 financial crisis, as the ruling class of the military/industrial complex have formed a cabal with bankers and politicians to manage the global economy for their own benefit with no regard whatsoever for the remaining 95% of the people.

The history of representative democracy

Our illusion of democracy, the rule of the people by the people, has been shattered encouraged by the rapid spread of information throughout the Internet and instant-communication systems.

Developments in technology have brought many advantages and benefits to the masses but at the same time have exposed the dark secrets of government as never before.  One of the major secrets to be revealed is how governments are financed and how they interact with other connected parties in their management of taxpayers’ money.

I will follow the pattern set in previous Issues by briefly examining the history of our government system.  Many will already know that our democratic system was derived from the Greeks, particularly the Athenians, who developed techniques to prevent the rise of *oligarchy:

*A definition from Wikipedia:

“Oligarchy is a form of power structure in which power effectively rests with a small number of people. These people could be distinguished by royalty, wealth, family ties, education, corporate, or military control. Such states are often controlled by a few prominent families who pass their influence from one generation to the next. In his 2011 book, “Oligarchy,” Jeffrey A. Winters defines oligarchy as “the politics of wealth defence by materially endowed actors.” Winters’ definition is that massive wealth is the key factor in identifying oligarchs”.

During the fourth century BCE, after the restoration of democracy from oligarchic coups, the Athenians used the drawing of lots for selecting government officers in order to counteract, what the Athenians acutely saw as a tendency toward oligarchy in government if a professional governing class were ever allowed to use their skills for their own benefit.

They drew lots from large groups of adult volunteers as a selection technique for civil servants performing judicial, executive, and administrative functions.  They also used lots for key executive posts, such as judges, administrators and jurors in the political courts which had the power to overrule the Assembly.

I can find no consensus on how to define democracy; but equality before the law, having equal access to legislative processes and various freedoms appear as important characteristics of democracy. In the United Kingdoms the main feature is that of parliamentary sovereignty whilst maintaining judicial independence.

Freedom of political expression, freedom of speech, and freedom of the press are considered to be essential rights that allow citizens to be adequately informed and be able to vote according to their own interests.  It has also been suggested that an important aspect of democracy is the capacity of all voters to participate freely and fully in the life of their society.

With its emphasis on notions of social contract and the collective will of all the voters, democracy can also be described as a form of political collectivism because it acts as a form of government in which all citizens have an equal say in the decisions that affect their lives.  For example from: Wikipedia:

“Some contemporary authors have characterized current conditions in the United States of America as being oligarchic in nature.  Simon Johnson wrote that “the re-emergence of an American financial oligarchy is quite recent,” a structure which he delineated as being the “most advanced” in the world.  Jeffrey A. Winters argues that “oligarchy and democracy operate within a single system, and American politics is a daily display of their interplay.”

Bernie Sanders is quoted in a 2010 ‘The Nation’ article that: “an upper-crust of extremely wealthy families is hell-bent on destroying the democratic vision of a strong middle-class which has made the United States the envy of the world. In its place they are determined to create an oligarchy in which a small number of families control the economic and political life of our country.”

Governmental democratic process today and its failure

We are all aware that, although we have in the UK a voting process and can change our governments according to the peoples’ will, it does not work this way in practice.  Not only have the two ruling parties found mutually supportive ground in their common policies but since 2008 it has become evident that the politicians might make the laws but the bankers and financial oligarchs control and manage the executive and the money.

This may be described as “Corporatocracy and Crony capitalism” and is manifest in a corporate oligarchy as a form of power, governmental or operational, where such power effectively rests with a small, elite group of inside individuals.

These often come from small groups of educational institutions, influential economic entities such as banks or commercial organisations with lobbyists that act in complicity with the oligarchy but often with little or no regard for the prevailing constitutional rules. Today’s multinational corporations function as corporate oligarchies with exceptional influence over democratically elected officials.

Again, from Wikipedia:

“Robert Michels believed [like the Athenians] that any political system eventually evolves into an oligarchy. He called this the iron law of oligarchy. According to this school of thought, many modern democracies should be considered as oligarchies. In these systems, actual differences between viable political rivals are small, the oligarchic elite impose strict limits on what constitutes an acceptable and respectable political position, and politicians’ careers depend heavily on unelected economic and media elites. Thus the popular phrase: there is only one political party, the incumbent party, and that is the end”.

Perhaps this is enough to surmise about the failures of our political system except to acknowledge that, in my experience, no serious person believes our system of government in the United Kingdom is anything other than a veil behind which the ruling oligarchs reign supreme.

These Issues are about how they achieve this and what an individual can do to protect themselves from the patent excesses we witness each and every day; from Parliamentarians fudging their expenses to global mega-banks cheating their customers and blatantly committing obvious fraud upon our societies, leaving all of us the poorer in more ways than one, yet nobody appears to be accountable or punished for their obvious criminal acts.

To be continued next Saturday

 

Author: Austrian Peter

Peter J. Underwood is a retired international accountant and qualified humanistic counsellor living in Bruton, UK, with his wife, Yvonne. He pursued a career as an entrepreneur and business consultant, having founded several successful businesses in the UK and South Africa His latest Substack blog describes the African concept of Ubuntu - a system of localised community support using a gift economy model.

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3 Comments
robert h siddell jr
robert h siddell jr
October 12, 2018 10:03 am

Congress didn’t give in to the Rothschild Syndicate, Congress was bought. The American People might as well have been put on a public block in 1913 and sold to the hand full of super rich Federal Reserve Bank System private owners. Their Charter has not been revoked because they are a Globalist Mob that owns almost everything and will kill anybody that opposes them (even Kennedy, Saddam, Gaddafi, etc) and use the US Government against any country that opposes them (Iran, Iraq, Russia, China etc).

ubq
ubq
  robert h siddell jr
October 12, 2018 1:38 pm

True Dat.

subwo
subwo
October 12, 2018 10:27 pm

Mr. Peter, Larkin Rose would be good reading. He has written about Government. He also agrees government is nothing but force.