Archive for the ‘General’ Category

Invading Libya to Temporarily Save Imperialism and Theft-Capitalism

Thursday, March 24th, 2011

Libya broke free in 1969. Imperialists have repeatedly tried to regain control ever since. Though under imperialist embargoes and attacks much of the time, Myammar al-Gaddafi, the leader of that revolution, modernized Libya beyond the living standards of England.

Besides free education (including advanced education anywhere in the world), free health care, most adults owning a car, and providing each marrying couple a $50,000 interest free loan, large sums of Libyan money was spent to keep alive Africa’s post WWII dream of forming into “The United States of Africa.” Substantial funds were spent developing some of the smaller nations in central Africa. And Libya’s leader did all this without amassing personal wealth.

His latest proposal was to nationalize the oil companies and turn the massive profits currently flowing out of the country towards Libyan workers and the poor. These proposals were sitting in front of Libya’s citizen councils (their system of grass roots democracy) when imperialism attacked.

If put in force, she would have the highest standard of living in the world, and there would be no such thing as a “poor” person in Libya.

Ghadaffi was so revered for having gained Libya’s freedom, no ethnic group or political coalition could be found to fund, arm, train, and overthrow him.

However, under the umbrella of populist revolutions overthrowing puppets throughout the Arab world, and with the urgency of preventing such an example to the periphery of empire currently breaking free, such a group was covertly organized.

Only the most naive would believe a ragtag, poorly armed, untrained, motley mass would drive cars, pickups, and trucks several hundred miles West on a coastal highway openly declaring they were going to overthrow a government with a well-equipped and trained army.

Imperialism obviously informed this hotbed of Al-Qaeda recruits they would back a revolution to put them in power.”

A plastic gun shown to NBC reporter Richard Engle by an insurgent supposedly in battle, exposed this as a photo op by those covert organizers to gain the loyalty of the world for this assault on Libya by imperialism.

One hundred British covert operation forces inserted into the Benghazi area three weeks before their rag tag assault, quickly expanding to 350, and the man in charge of the uprising, Khalifa Hifter, having lived in Virginia, next door to  the CIA for 20 years, is further confirmation.

Those insurgents were promised backing by the world’s most powerful nations for them to rule Libya. Meanwhile mainstream news, which surely has access to far more information than we do, told the world this was a spontaneous, homegrown, insurrection.

Even with NATO headquartered there, Germany recognized the moral hazard of the unjust collective assault on Libya and quickly withdrew from the coalition.

On April 1, 2011, Asia Times exposed the assault on Libya was part of an agreement between America and Saudi Arabia. In trade for the Saudis protecting America’s puppets in Bahrain and having their fully controlled Arab League vote yes on UN Security Council Resolution 1973, approving a no fly zone over Libya, America and NATO agreed to take out Ghadaffi.

The destruction of Ghadaffi’s Libya was to protect Saudi Arabia, Bahrain, Yemen, and other puppet governments, from the populist Arab revolutions breaking out throughout the Middle East.

But these were only minor aspects of a much bigger problem for imperialism. Libya’s ongoing study on nationalizing all oil operations within their borders, their organization of several African countries for central banks independent of current world currencies, switching to the gold dinar as Africa’s common currency, and the selling of oil for those gold dinars.

All that, plus Ghadaffi’s outspoken efforts for true democracy within the United Nations, would lead to the overthrow of puppet governments worldwide, the potential success of the 60-year plan for a United States of Africa, and the end of theft-capitalism.

Thus the attack on Libya was launched by America and NATO under the slogan R2P, Responsibility to Protect. (Google Toby C. Jones Libya: “Hidden Agendas” and “Vital Interests” and Reason for war? Gaddafi wanted to nationalize oil Lisa Karpova Linda Joslin;Bin Laden Out, Gaddafi Next, Pepe Escobar).

Communication superhighways are spreading truth so fast that most the leading thinkers of all nations realize this is imperialism’s attempt to keep the current populist revolutionists trapped within the imperial system.

Much of the world breaking free, in concert with the worldwide financial collapse, would mean the end of theft capitalism that we have been predicting. China, India, Russia, Brazil, Venezuela, and most other nations currently breaking free, are fully aware R2P is just as much to control them as it is to control those populist revolutions.

The absolute rule, to never share technology with anyone, was broken when imperial industries moved to China wholesale (see our subchapter on that “Accident of History”).

As a result of that breach in the monopolization of technology, within one more generation, much of the world will be developed. Their development automatically leads to a demand for equality in world trade and they retaining their share of the world’s production of wealth.

R2P is imperialism’s effort to head off this oncoming disaster. Imperialism is getting steadily weaker while the periphery of empire is getting stronger and stronger.

All people are good and populations of the imperial centers would never accept their governments creating such havoc across the world if they knew the truth.

An honest look at history 200 years ago is very instructive. We all know that Napoleon was a megalomaniac dictator, right? Reading the cover story of the April 22, 1991 US News and World Report, History’s Hidden Turning Points by Daniel J. Boorstin, will quickly push aside the pure propaganda, pushed in all imperialist history books, on the subject of Napoleon.

He spread many of the rights declared for all men by the French Revolution throughout Europe. Known as the Napoleonic Codes, “they are the legal basis for over thirty nations of Europe today.”

Those codes were a direct threat to both Aristocracy and the church, the power structure of the time. Thus, even as those powers were severely proscribed, and because those they had control of the universities and would eventually regain control of the media, their dictatorial powers were not eliminated.

Thus Napoleon, who can only have been worshiped for many decades throughout those 30 plus nations he liberated, are recorded by imperialist historians as a megalomaniac and dictator, the very attributes of the current power-structure promoting themselves as peaceful, free, democracies.

The demonizing of Libya today, and every other nation threatening to throw off the yoke of imperialism, as we have demonstrated above, is the exact same process under which Napoleon’s reputation was destroyed.

Just as Napoleon freed most of Europe, communications superhighways and the rapid development of the peripheries of collapsing empires is freeing the world. That is, assuming those megalomaniacs do not destroy it first.

Imperialism will probably win this round also. However, most the emerging world realizes how close they came to being free—they have China, India, Russia, Brazil to collaborate with to further develop their strength—and sooner or later imperialism/theft-capitalism will lose this struggle.

The blogs below alerts us to all the above and more. Some of these blogs, and similar alerts on Facebook and Twitter, have been blocked. This will be imperialism desperately trying to limit truths of their suppressions getting to the people. The comments on those blogs tell us the leading thinkers in the world understand imperialism very well.

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Thank you. J.W. Smith

The 21st Century Will Be Determined by the Rapidly Emerging World

Sunday, August 1st, 2010

By J.W. Smith

Education Under 5% the Cost of Brick and Mortar Schools is the Key to Freedom for the Emerging World

The emerging world is rapidly untying itself from Western classical and neo-classical economics. All wealth is processed from resources, those resources are in the emerging world, and they will be demanding their share of the wealth produced.

One of my crucial predictions towards that outcome just came true. Those planning to produce $200 computers for every child in the world, were overtaken by India now producing a $35 computer with the expectation it will eventually cost only $10.

Obviously cheap labor was used to build an impeccably clean factory and equally cheap labor produced those CPUs, and large capacity flash memory sticks (replacing hard drives) embedded in a keyboard and monitor. Everything else, including the software and one’s working files, are to be on the web as pioneered by Google’s Chrome operating system.

Monopolies we are told do not exist, accounting for most hardware and software costs, are bypassed and, as fast as the emerging world can put it together, lessons from K1 through K20, as well as post graduate studies, will be on the Internet for use by all for free. Alert 15-year-olds within the emerging world, studying day and night. will be well educated in five years.

Within 30 years of distribution of those computers, most the highly educated people will be outside the currently wealthy imperial centers of capital. Inventions will pour out of those mentally freed souls, imperial nation’s patents will be ignored, and the greatest inhibitor of emerging world development, the monopolization of technology, will be broken.

Patent and Financial Monopolies, Along With Destabilization, and Military Suppression, Denied the Periphery of Empire the Right to Develop

Dozens of emerging countries will follow India’s lead, build their own processors, flash memories, keyboards, and monitors, and the cost for computers for all the world’s children will be little more than the cost of regional labor. Millions will donate both their labor and money for such a worthy purpose. After all, millions already dedicate their lives to such worthy causes and this will be the downhill run towards their goals.

With the intellectually capable of the entire world educated and having access to the Internet to stay abreast of everything going on in the world, monopoly capitalism will stand fully exposed and quickly collapse. Their control of the world, through which they control resources and markets, will quickly collapse

Three Key Governing Structures for Emerging Nations

Three crucial aspect of that collapse will be 1) the emerging world reclaiming their resources through resource (land, oil, mineral, etc) rents going into the public treasury to finance infrastructure and industrial development, 2) regional currencies spendable only within those regions, and 3) a world currency financing trade between regions under a mandate to protect the value of all currencies as those economies are guided toward maximum efficiency, each with their proper share of regional industry

The destruction of the value of local currencies each time an emerging country started putting their economies together was an easy way to control the world. Those needed as allies to retain worldwide control were permitted within the world trade system.

The Imperial Monopoly System is Coming to An End

The destruction of the value of regional currencies each time an emerging country started putting their economies together has been an easy way to control the world. Until an accident of history, the rapidly advancing development of China, only those needed as allies to retain worldwide control were permitted within the world trade system.

As soon as the people within the emerging world educate themselves, they will rapidly take the lead in economic efficiency and equality of rights. The imperial world is simply too entrenched within their monopoly systems and too lacking in understanding of property rights (the above link) to restructure without first totally collapsing.

Just as the imperial nations used allies to maintain the monopoly/plunder by trade system, others know they need to develop together to maintain an alliance against those historic imperial nations. Leading nations will reach across their borders and help their neighbors.

After all, to be efficient, at least two railroads must go the full length of Africa, at least 10 must go the full breadth of Africa, and the same efficiency requires close by markets for steel mills, copper mills, renewable energy electric grids, electric cars, and virtually every consumer product.

These educated people, with 10 to 30 times more geniuses than are in the old imperial nations, will take the lead in inventions (over 50% of America’s patents are now foreign), they will understand the old monopoly system they were once told did not exist, and, just like America paid no attention to Europe’s patents when developing, they will pay no attention to those who claim title to older inventions. Freedom for the world and the end of war and poverty are now possible.

For the third time in this short post, I point you to how simple an honest capitalist economy can be. Thank you.

J.W. Smith

Together, Unequal Property Rights Law & the End of Plunder by Trade will Collapse the Monopoly System We are Told Does Not Exist

Saturday, May 15th, 2010

Michael Hudson, Matt Taibbi, William K Black, and others, offer stunning insights into the ethereal world of high finance. A few months ago, W Black and M Hudson alerted us that 40 years ago the financial sector earned 2% of US corporate profits, while today they earn 40%.

Assuming the financial sector was 100% productive 40 years ago, which it assuredly was not, and assuming finance capital needs per unit of fully productive industry remained the same, and surely industrial efficiency gains has reduced finance capital needs, this means the financial sector today is 20 times bigger than necessary, and over 95% of it is unearned money.

Our research writings keep pointing out that our monopoly structure, which we are told does not exist, extracts so much unearned money from the economy each year that they not only cannot spend it all, no matter how hard they try; they cannot even find safe places to invest it all locally.

The “export of capital,” for a while, provides that safe place to invest a part of those massive sums of unearned money. However, profits on overseas investments are far larger than local investment profits. Money earned with unearned money is also unearned money (you cannot rob a bank, invest it, get caught 10 years later, and keep the profits), and the massive sums of unearned money just grow larger and larger.

These ‘investors,” unaware they are totally unproductive, cannot find enough places to invest anywhere; so they start betting between themselves (derivative bets, and credit default swaps [which are bets on derivative bets]). This is the derivatives market which now may be approaching, or even surpassing $1 quadrillion in notional value. Those notional values became real values when the markets started to crash in 2008, froze up the markets, and turned the economy towards another Great Depression.

I thank W Black and M Hudson for quantifying the current level of these massive sums of unearned, and unproductively invested, finance capital (95%). However, they, and other analysts, are not calling these massive sums “unearned,” “extracted,” or “stolen,” within a framework that oulines that theft of what is properly your, my, and every other citizens, wealth. Everybody assumes it is “earned wealth,” even when it is obvious that it is not, the $1 quadrillion notional derivatives market for example.

What is not addressed, pointedly and specifically, are these massive sums of unearned wealth getting larger and larger, and claiming all the efficiency gains of technology, plus a part of what once went to labor. Nor is it mentioned that those huge unearned sums are loaned back to those from whom it should never have been taken from in the first place.

Those debt payments on what is properly the borrowers money in the first place, get larger and larger. In the final stages of a 50-year Kondratieff cycle, the earnings of those forced into debt peonage go down, buying power collapses, and another great financial collapse, such as is happening as we speak, is upon us.

I keep pointing to these massive “unearned,” “unproductive” sums and keep stating they continually get larger and larger. I thank W Black and M Hudson for quantifying that increase of unearned, unproductive finance capital the past 40 years; fully 95% is both unearned and unproductive. They are the “earnings,” really thefts, of a monopoly structure we are told does not exist.

That massive waste of unearned wealth contrasts with the efficiency of a full and equal rights, efficient, capitalist economy. The current inefficient monopoly capital structure wastes over half our labors and resources. An efficient capitalist structure, such as this “full and equal rights economic thesis, reduces the employed workweek over 50%, even as the quality of life rises, due to the elimination of those wasted labors and resources.

More and more the adjectives “unearned” and “extracted” are used, but there is no explanation that they are the false earnings of monopolies. A couple times I have seen “property rights” as the problem. Which it is, but no where do I yet find explanations behind those alerting statements.

Would this audience please advance this article and links to others so they can take this apart further and explain it to the world? I am awed by the brilliance of M Hudson, W Black, M Taibbi, Ellen Brown, and many many others. I would be helpless without their in depth views. They, and others, have the talents, and frames of reference, to thoroughly explain the errors in our property rights laws.

I am fully aware that the problem is that we are all locked within the permitted parameters of debate, primarily by classical economics who have never broken past the permitted parameters of debate protecting wealth and power. It is no different today than 500 years ago when theorists would lose their head if they dared put out too much truth too clearly.

If we are to retain the efficiencies of capitalism, we must advance to honest capitalist economic theory which is still outside those permitted parameters of debate. The world must be alerted to the current monopoly structure wasting over half our labors and resources. If we do not, and just as happened throughout Europe during the Great Depression of the 1930s, an even more corrupt fascist social structure may emerge.

My most recent writings were triggered five years ago as the emerging world was becoming aware their wealth was being claimed by the imperial centers of capital through “Plunder by Trade.” With the “resource powers” now aware, the theft of their wealth through inequalities in trade will end; the loss of those massive sums is what will finally crash the markets of the imperial centers no matter how many trillions of dollars are thrown at them. When that loss hits, and it has not yet, the economies of the imperial centers will crash.

I was not predicting a crash due to the 50-year Kondratieff cycle. I was making that prediction on the basis of the massive wealth stolen from the periphery of empire coming to an end. Those who think these economies are going to recover better start preparing for that surprise.

This Kondratieff cycle has been short circuited by the many trillions of dollars thrown at the owners of those massive sums of “unearned,” “extracted,” wealth. However, economies cannot possibly regain their previous level of production/consumption so long as those massive sums of unearned wealth are still intact and continually claiming an ever larger share of what is properly others’ wealth.

That is the very structure that caused the crash in the first place, it was self correcting, that correction has only been temporarily halted, and the economy cannot recover until the correction is complete.

The best that can happen is monopoly capitalism will rebalance at a lower quality of life for the average citizen. About that time, the loss of the massive sums stolen from the periphery of empire through plunder by trade will start disappearing, and the financial balance will again be disrupted.

No amount of money created by the old imperial centers thrown anywhere will replace the losses to the old centers of capital of new centers of capital losing control of world trade. Without an efficient production base behind it producing real values for people, and distributing those real values to the them, their money will have no value.

Money spent from a bank robbery is full value money. But when caught one earns no more money. That is very relative here. Massive sums were stolen from the periphery of empire ever since WWII. Those resource powers now understand the system of theft and they will be guarding all doors.

.The only way Europe can produce real values is if they trade technology and training for access to the resources of the resource powers. That is a totally different philosophy than the one they designed a few hundred years ago, and they will have no problem finding regions with which to sign those trade agreements. But don’t count on that philosophical change.

America has resources but does not have an economic philosophy to compete in honest world trade, and she is not about to change either. If America and Europe are to compete, instead of control, its philosophical technology is going to have to catch up with its industrial technologies. The key aspects to study are:

1) Plunder by Trade

2) Property Rights Law, as applied to nature’s resources and technologies, denying others their rightful share of what nature offers to all for free.

3) There is no such thing as honest capitalized value. An honest economy will only have use values (addressed in the property rights law link).

4) Over 95% of current finance capital is the capitalized values of that unearned wealth, which properly belongs to all us citizens in roughly equal shares (addressed in the property rights law link).

5) And the steady expansion of that unearned wealth finally lowering buying power to where the economy collapses (addressed in the property rights law link). That imbalance causing collapses is discussed all the time; however, 95% of finance capital being unearned wealth, or it being properly your, my, and every other citizens wealth, is not discussed anywhere. Gordon Arnaut discusses some of the same aspects of our economy.

Please look these links over, put your own property rights/trade philosophy together, and give Western civilization the opportunity to lead the world towards peace and prosperity for all.

Conservationists and global warming activists: The citizenry living under that honest economy will have a quality life while consuming less than half the labor and resources as under the current monopolized economies.

Letter to the Editor of Peter’s Picks

Sunday, March 28th, 2010

Dear Peter Lorenz of Peter’s Picks,

Within the progressive world, ”our press being totally under the control of corporations” rolls on. No where do I read that the “reality” is visible on the horizon. The froth of that oncoming wave is clearly visible on CNN and NBC News, March 26, 2010, used Amy Goodman of Democracy Now as the liberal expert on the just-amended health-care bill.

The on-coming wave that will one day swamp us, hopefully soon, is also clearly visible in many politicians throughout America suddenly becoming educated by the alternative news. Six months into the battle for health care reform even the corporate media occasionally  laid out the realities of honest health care reform. That battle educated much of the nation. It seems state politicians can now openly discuss how over 50% of medical costs in America are totally unnecessary (Insurance and accounting costs alone account for that much waste). Many also realize those costs can be reduced another 50% (to 25% of today’s costs) by a total restructuring of our food supply away from processed foods and a simultaneous restructuring of Big Pharma to eliminate those unnecessary monopoly profits.

A part of that wave is just barely visible (perhaps this is yet only hope) in the soon-to-be-signed reduction in nuclear weapons by America and Russia. Another part of that froth is it suddenly becoming possible to speak of the reality that Israel has no intention of ever negotiating in good faith with Palestinians and that their plan for these besieged people is the same as the American colonists against the American Indians. Ninety five percent of the Indians were eliminated over the past 510 years and many tribes were successfully disappeared from the face of the earth. The greatest genocide in all history and this was intentional.

More of the New Reality Becomes Visible

Almost single handed, Ellen Brown alerted the nation that privately collected profits of banks is all unearned money (she may not have used those terms but that reality is evident in her story) while the profits of socially-owned banks spent on social needs converts that unearned wealth into earned wealth to be spent on social needs. Every million dollars “earned” by the state through a socially-owned bank and spent on social needs is a million dollars of taxes a citizenry does not have to pay.

In short, the corporate information propaganda machine which has been preventing reality reaching the masses has just sprung huge cracks which, hopefully, will eventually destroy both the world imperial system and the totally corrupt internal monopoly structure of America, Europe, and their still-standing clones across the world.

Those two revolutionary state aspirations, state banks and state sponsored universal health care, will be noticed by other states and, over time and along with the ongoing financial collapses of private banks and entire economies across the world, monopoly banking monopolized health care will, hopefully, soon be history.

The Population to Support Those Breaks for Freedom are Already in Place

Well over 50% of Americans believing in single-payer health care means 70% within some states are supporters. With that many aware citizens, there is no way that corporations can control the health care laws of all states. Once a few states have more honest health care, those stories will be on main stream news, the citizenry of other states will realize their error, and a restructuring to universal health care within Congress will happen.

As the imperial centers of Europe and America collapse, the essence of my writing the past five years; China, India, Brazil, Venezuela, Russia, eventually Africa, and other nations (Japan will also ally with those breaks for freedom) will rapidly put their economies together. That will put the final nail into the coffin of the current capitalist narrative (inefficient monopoly capitalism being described as efficient honest capitalism). That replacement of dishonest history and equally dishonest economic theory with honest history and economic theory will, again hopefully, be the pen being mightier than the sword we have heard about all out life.

We may see the start of this already on CNN: Lou Dobbs was fired, very bright and serious news anchors have been added, their bosses seem to have been given them their head, and they are doing really serious, in depth, analysis. They do not yet come up to the quality of Democracy Now and the many other commentators on Free Speech TV and Link TV. However, as now structured, they cannot avoid exposing more and more as these world crisis come on faster and faster and become deeper and deeper.

Sooner or later, again hopefully, the tipping point will be reached and the world will break free from the horrors of monopoly capitalism imposed upon the world for the past few centuries as honest capitalism.

The simplicity of truly honest capitalism is laid out in this Full-and-Equal-Rights-Economy-in-170-words.

I am stunned by how fully 80% of whomever I tell this little story to understand it fully. This alerts us that the simplicity of  honest capitalism has been kept out of social discourse throughout capitalism’s history. The hope is that the many brilliant minds out there will carry these simple concepts further forward and to broader audiences.

The Coming Collapse of the World Economy is addressed further here.

As you will see, very good minds are working hard on how the world is collapsing. If the world becomes aware of how simple national economies can be and how under those honest economies, assuming they were accepted worldwide, all reason for war disappears and the labor and resources required for a quality life drops by 50% or more. This means there are enough resources on this earth for everybody.

Those who recognize the dangers of pollution and global warming should have a deep interest in this thesis. After current belief systems collapse, these concepts will be easily understood. Lets go for it. Thank you.


JW Smith.

A 2009 Christmas Message we treasure

Friday, December 25th, 2009

Hi J.W.!

I am writing to wish you and yours a very Merry Christmas!

As I think back over 2009 and reflect on those people, ideas, or events that most influenced my thinking, my coming into contact with you and your ideas would top the list. And for that I have Richard Cook to thank.

The idea that modern economics is a carry-over and justification for ancient land titles and ownership of nature’s resources that are given freely by the Creator to all earth’s inhabitants is a profound truth that leads to a “system reset” of just about everything else having to do with life as we know it.

I’m also looking forward to getting into Alanna’s book, “The Earth Belongs to Everyone”. Talk about a profound truth!

You have brought about a major expansion in my thinking and understanding of how the world works. A priceless gift of insight which brings with it a responsibility to share that knowledge with others in the best way I know how.

I am grateful, and in your debt, sir. Thanks for everything and I look forward to bringing your message to others in 2010 in my own small way. With my utmost respect and admiration,

Peter Lorenz of PetersPicks

My response,

Thank you Peter Lorenz,
Your faith in me has kept me going. All our minds are so totally under control even as we think we are free that anyone who has broken free of those mental chains, even part way, is isolated. Remember the first thing I told you when we met, “Once you realize the propaganda is carried right through the university system, the evening news, and you realize the economic classics, the bibles we live by, are nothing more than “justifications for a system of theft, property rights law, as applied to nature’s resources and technologies, denying others their rightful share of what nature offers to all for free your mind is suddenly free and understanding an honest economy is as simpe as understanding your family economy within an honestly structured economy.”
What stuns me is how easy those who do not have trained thought, either formal or self educated, understand it, see the full picture, and how formal education or self educated thoughts limit a person’s understanding. It seems that readjusting from firm beliefs implanted after years of study is a many year process. But those who read my work are still making the change faster than I did. It took me a lifetime of study to set that nonsense aside and even then it was the property rights fraud that burst into my mind 5 years ago that did it. So it is the simplicity and common sense of the thesis that is the key.
Propaganda has buried reality so deep it takes a lifetime to dig out from under it. Little shoots, such as Henry George thought, are sticking out here and there, but the big truth, the fraud of property rights law as applied to nature’s resources and technologies which nature offers to all for free, is buried deep out of sight. Henry George only looked at one clue and neither he nor most of his followers realize the size of the corpse that laid deep beneath the finger bone he spotted. The few who did look for the corpse that went with that finger bone were looking in the right area of thought but gave up before they found it. I just never quit looking.
Thanks again for your faith in me. As ever
J.W. Smith

The Simplicity of Auditing the Federal Reserve, Taking over Bankrupt Banks, and Making Them Vibrant Socially-Owned Banks

Saturday, November 28th, 2009

Everyone is aware that the Federal Reserve has given trillions of borrowed and created dollars to corrupt bankers. Even Congressional members are demanding the “privately owned” U.S. Federal Reserve be audited so they and everyone else will know exactly to whom our money went and why.

The myth that the Fed is “privately owned” has been repeated so many times by so many who should know better, it is accepted by many as fact. In reality the Federal Reserve is already socially owned and, by law, controlled by Congress:

The Federal Reserve’s ultimate accountability is to Congress which at any time can amend the Federal Reserve Act [The last provision of the Federal Reserve Act of 1913, Sec 30]. Legislation requires that the Fed report annually on its activities to the Speaker of the House of Representatives, and twice annually on its plans for monetary policy to the banking committees of Congress. Fed officials also testify before Congress when requested.

The last provision of the Federal Reserve Act of 1913, Sec. 30, states, “The right to amend, alter or repeal this Act is expressly reserved.” This language means that Congress can at any time abolish the Federal Reserve System, buy back the stock to eliminate the fiction of private ownership, make it part of the Treasury Department, or altar its structure in any way it sees fit.

At the 6% interest established in law, surely the buyback cost will be less than 2% of the enormous sums the Fed would be valued at if privately owned. But the Fed has no value specifically because the massive profits beyond the small sums paid to those supposed owners are periodically turned over to the US Treasury as fast as it is earned. That the Federal Reserve has no oversight established in law is also a myth.

Who Owns and Who has Oversight Over the Federal Reserve, as Explained by Themselves, is not complicated. The quotes above and below are from this linked Federal Reserve webpage.

“The Federal Reserve System is not “owned” by anyone and is not a private, profit-making institution. Instead, it is an independent entity within the government, having both public purposes and private aspects. …

As the nation’s central bank, the Federal Reserve derives its authority from the U.S. Congress. It is considered an independent central bank because its decisions do not have to be ratified by the President or anyone else in the executive or legislative branch of government, it does not receive funding appropriated by Congress, and the terms of the members of the Board of Governors span multiple presidential and congressional terms. …

However, the Federal Reserve is subject to oversight by Congress, which periodically reviews its activities and can alter its responsibilities by statute. Also, the Federal Reserve must work within the framework of the overall objectives of economic and financial policy established by the government. Therefore, the Federal Reserve can be more accurately described as “independent within the government …

The twelve regional Federal Reserve Banks, which were established by Congress as the operating arms of the nation’s central banking system, are organized much like private corporations–possibly leading to some confusion about “ownership.” For example, the Reserve Banks issue shares of stock to member banks.

However, owning Reserve Bank stock is quite different from owning stock in a private company. The Reserve Banks are not operated for profit, and ownership of a certain amount of stock is [by law] a condition of membership in the System. The stock may not be sold, traded, or pledged as security for a loan; dividends are [by law] 6 percent per year.”

Federal Reserve Profits are paid to American Citizens

By law, the Treasury has claim to all income after expenses (which includes a standard 6% dividend to member banks). This can be found in the US Code .. TITLE 12 > CHAPTER 3 > SUBCHAPTER VI > § 290, Use of earnings transferred to Treasury.

The net earnings derived by the … Federal reserve banks shall, in the discretion of the Secretary, be used to supplement the gold reserve held against outstanding United States notes, or shall be applied to the reduction of the outstanding bonded indebtedness of the United States under regulations to be prescribed by the Secretary of the Treasury.

Simply pass a law that no one with a conflict of interest can be an officer of either the Treasury or the Federal Reserve and both will then clearly be understood as the socially-owned financial institutions under the control of Congress. Without those conflicts of interest, the massive corruption within the banking structure under President George Bush and continuing under President Barack Obama could never have taken place.

Reducing Other Conflicts of Interest

Some of the largest member banks within a Federal Reserve district which own stock in the Federal Reserve, and thus indirectly get to vote on Federal Reserve board members, are controlled by major banks in Europe.

That conflicts of interest of foreign bankers within American banks and the Federal Reserve is reason enough to exercise the right to buy back those shares and vote only for board members and a Board of Directors with no conflicts of interest, either foreign or domestic.

Had all the above been in place in the early stages of this 2008-09 financial collapse, those trillions of borrowed and created dollars would have been pointed at the real economy instead of at the very people who had created this crisis. Those corrupt bankers and financiers would have paid dearly for their thefts of our wealth, for the crashing of our economy, and the economy could have been quickly made whole. A shorter outline of  establishing that efficient economy is here.

More sources:  What is the Federal Reserve System? —–   Who owns the Federal Reserve?

What are the Federal Reserve’s responsibilities? —-    How is the Federal Reserve System structured?

How is the Federal Reserve funded? —–  Why did Congress want the Federal Reserve to be relatively independent?

Are the Federal Reserve System and Reserve Banks ever audited?—–     When was the Federal Reserve created?

Since the Federal Reserve has considerable discretion in carrying out its responsibilities, to whom is it accountable?

Socially Owned Banks are Many Times More Efficient than Private Banks

Socially owned banks being many times more efficient than private banks is easy to understand. After all, private banks crash, go public, are put back together by the government, and sold back out to new owners who continue extracting wealth, as opposed to producing wealth, as private banking was designed to do.

The only labor-created values within a banking structure are brick, mortar, and furniture. Those massive unearned values are based on a banks license. Yes private banks need millions of dollars in equity to start up but socially owned banks would need no such startup funds. They—in alliance with, and under the supervision of, the Federal Reserve—can create money any time it is necessary.

Scottish bankers figured out that costs of banking, using expensive hand accounting and including the costs of brick and mortar, is covered by 1% interest on loans made. With cheap electronic accounting, those costs are covered by ½ of 1% interest on loans.

All interest above those operating costs is earned money when returned to society to cover essential services, such as health care and education, if socially-owned. When privately collected, that extracted wealth, measured in money, is then automatically capitalized 10 to 30 times within the stock market. Capitalizing profits, both earned and unearned, gave capitalism its name and those capitalized unearned profits which properly should go to all members of society in roughly equal shares is the heart of the monopoly system which we are told does not exist.

Sixty Percent of Our Finance Capital is both Unearned and Unproductive.

For years we have pointed out that this massive unearned wealth is more than monopolists can spend on conspicuous consumption or that they can find a place to safely invest. Those domestically extracted surpluses (they are unearned) first buy up the wealth of other nations (known as the export of capital).

Those even higher unearned profits (one cannot rob a bank, get caught 10 years later, and keep the profits) increase the extracted and unspendable funds further. With overseas markets saturated, monopolists turn to gambling with each other. Those totally unproductive activities (derivatives, credit default swaps, etc.) reach into the real economy to extract more wealth properly belonging to all citizenry of the world. (The plunder by trade story explains how unearned wealth has been, and is being, extracted from the periphery of empire.)

That unearned wealth continually expands and eventually becomes so unbalanced it crashes the economy. William K Black alerts us that “Forty years ago our real economy grew better with a financial sector that received one-twentieth as large a percentage of total profits (2%) than does the current financial sector (40%).”  Thank you William K Black for that quantification of 95% of current finance capital being non-productive. A study of anUnderstandable Full and Equal Rights Economy will alert us that it is also unearned wealth.

William Black quantified the massive unearned finance capital within today’s economy that is reducing the efficiency of both domestic economies and world economies by fully 60% as our research has been saying for decades. Actually much more than 60% when one factors in the accumulative gains possible when Technology is fully shared with all nations.

This means that 95% of our finance capital is money that grew ever larger every year, eventually had no place to be safely invested, so they turned to gambling between themselves (derivatives, credit default swaps, and other totally unproductive endeavors),  and finally unbalanced and crashed the economy.

Managing an economy is not really complicated if the citizenry ever gain full and equal rights and vote in “their” representatives instead of voting in those who represent wealth and power.  This blog explains it a little deeper.  The same 170 word thesis as referenced several times above.

Our books go into it deeper yet.

Economic Democracy: A Grand Strategy for World Peace and Prosperity, Revised 2nd Edition, 2009

Money: A Mirror Image of the Economy, Revised 2nd edition, 2009

One important myth I do not address above is that “Private banks create money.” Citing 12 points, pages 32-33 in Money and pages 292-93 in Economic Democracy, I have very carefully set that myth aside. Those pages can be accessed at and those 12 points studied.

Point # 3 points out that no bank would go broke if they had the right to create money. To that I  would add that no where within today’s blog world, and I marvel at the brilliance of many of them, nowhere do you find an example of private creation of money actually having occurred. The simple truth is that if they could create money they would not be in crisis. Another simple truth is that Socially-owned banks can, under the guidelines of the Federal Reserve, create money while, as thoroughly addressed, private banks cannot.

The 170 word thesis cited above explains how simple an honest full and equal rights economy can be. When done explaining this I usually ask, “You never before heard one thing I just told you did you?” Most would say, “No I didn’t.” “And you understood every word I said, didn’t you?” “Yes I did.” “Could you see the flow of products and services one way and money the other way within that efficient economy?” “Yes I could.” Please study that thesis carefully and point out to me any social need you see that is not automatically provided within that full and equal economic rights structure.Nobody has yet pointed one out to me.

We are all in this together. Every one of you are sincerely looking for those answers. If you recognize how easily society can be cared for within a full and equal rights social structure, please join our efforts to get this to the world.

An Ever-Expanding List of Powerful Blogs That Tell an Amazing Story

Monday, April 6th, 2009

How Iceland, Eastern Europe, Africa and South America can set aside the debts imposed upon them

Professor Michael Hudson’s stunning description of the imminent collapse of the monopoly financial structure which buried Iceland and Eastern Europe in unpayable debt. Iceland and Eastern Europe simply will stand their ground, refuse to pay, and turn to the allying emerging world to fulfill their trade needs: How Iceland and Eastern Europe will Refuse To Pay the Debts Designed to Extract Their Wealth and Emerge as Free Nations (audio). Hudson’s Guns and Butter audio is the full story. The text can be read at  Hudson updates the Eastern European-Iceland story. Ellen Brown carries those concepts further forward. Hudson expands on the story further yet. Giordano Bruno alerts us to the identifying signs of that final collapse.  Mike Elk explains how the same banksters are using the same derivative scams to bankrupt state governments within America. Eastern Europe chickened out, and are putting their citizens deeper into poverty to pay Western Europe. However,  now Greece, Spain, Portugal, and Italy are also set to be bled dry and other countries, including America, will be next.

Taking a page from Iceland’s rejection of unjustly incurred debt, Ecuador and other South American countries are renegotiating their debts for roughly 35 cents on the dollar. Look for Africa to follow suit, look for countries to legislate those unjust, unproductive, debts as illegal, look for repurchase price of those debts to keep dropping, and look for Arab oil nations -and- South America to create a single currency for internal and regional trades. China and Russia are pushing for a world currency to replace the dollar. Recognizing that threat to the imperial nations, The IMF is considering being the creator and manager of that world currency.

For some time we have predicted that Japan would eventually ally with Asian economies and they all will decouple from America and Europe  (They are in the early stages of that decoupling). On top of the obvious gains of trading technology and capital to Africa and S. America for access to resources, Japan has not forgotten their defeat in WWII, destruction of Hiroshima and Nagasaki, or the indignity of the yet on-going partial occupation.  After reading Matt Taibbi one can be sure the emerging world must decouple from the collapsing empires to assure their own survival. Billionaire financier Jim Rogers says that deeper world collapse is coming this year (2010).

In Rolling Stones Magazine Matt Taibbi explains how Goldman Sachs has enough control in the markets they convert their derivative bets into sure profits. This is the best outline we know of how the primary purpose of derivatives is to extract wealth from an economy such as was being done to Iceland and Eastern Europe: The_Great_American_Bubble_Machine, a Video on Goldman Sachs Controlling America’s Economic Recovery Team and Ellen Brown explaining Goldman Sachs threatening to crash the economy if the government does not back off on investigating them or if they legislate control over them. Brooksley Born explains the struggle, and the failure, to regulate derivatives. (with which the banksters were destroying nations as explained above by Taibbi)  See also Mike Whitney.

Professor Michael Hudson’s The Financial War Against Iceland is an earlier lead up to his above blog.  Chris Hedges,  The American Empire is Bankrupt, covers the inevitable bankruptcy of imperialism. Michael T. Klare and Paul Craig Roberts explain its collapse is well ahead of schedule and David Michael Green agrees with Klare and Roberts As this allied empire collapses, Michael Chossudovsky points out how this attempt to control the world is sucking the us into World War Three. Our work explains that  Plunder by Trade is the centuries-old fundamental plan and the cause of all wars and all poverty.

Eva Joly, a member of the European Parliament, explains the financial institutions of the imperial nations should accept their share of responsibility for Iceland’s [and Eastern Europe's meltdown.

Hudson's first-out blog above explains why and how the theft of Iceland's and Eastern Europe's wealth will fail which, of course, is what will create The Greatest Depression in History. as addressed by Andrew Gavin Marshall. This is why no media in England or America has yet touched that story (9-21-09) even though it is widely covered in Iceland, Eastern Europe and the rest of Western Europe.

Corruption within private banking, off book accounting, derivatives, and really the entire financial structure

William Black lays out the simplicity on how the derivatives-credit default swap markets are totally procedures to extract wealth from the economy. Their is no intention to produce anything.

Ellen Brown describes how today's corrupt financial structures were put in place over the centuries: The Tower of Basel: Secretive Plans for the Issuing of a Global Currency.

Ellen Brown exposes the purpose of The Bank for International Settlements as a plan for world government controlled by bankers: Big Brother in Basel: Are We Trading Financial Stability for National Sovereignty

And Ellen Brown proves that publicly owned banks are many times more efficient than private banks. In a later article, she points out that many running for state governors and legislatures are running on a platform of establishing state owned banks. Banking is a technology known for thousands of years, the only real capital invested is a little brick and mortar, so what would be unearned money for a private bank becomes earned money with, through lower cost and more secure banking, each citizen getting his or her share of the profits. And Ellen  expands those concepts further A corrupt financial structure leads to a Fascist political structure.

For an understanding of the barriers against reality ever penetrating the American Congress, read Matt Taibbi again.
Congressional aides expose to him exactly how both houses are totally controlled by wealth and power.

If one had doubts about American foreign policy being fascist, read James Petras's outline of our death squads decimating Iraq's entire educational structure with the intent of destroying its secular, anti-imperialist, culture.

Is the U.S. on the Brink of Fascism by Sarah Roberts alerts us that we still have time to avert becoming a full fledged fascist society as the current power structure attempts to retain their massive unearned wealth and power. The only difference between full fledged fascism and the massive violence of  today’s hidden fascism is that all pretense of democratic institutions is abandoned. Roberts explanation that, if we don’t wake up and change course, America is now in the final stages of becoming fascist is crucial to our retaining what semblance of democracy we do have.

Ray McGovern tells us How The American Congress Was Cowed into Permitting Fascist Tactics by Presidential Decrees Identical to those of Hitler.

These corrupt governing and financing structures have been imposed upon us over and over throughout history

Most of us are aware of the Christian Rapture, End of Time, Movement and their efforts to control state policy. But guidance of state policy by religion goes much further. This exposure by Jeff Sharlet does not go far enough. The alliances of church and state goes back to 324 AD when Emperor Constantine allied with the Christian Church. Those Fascist alliances were always there within Europe and The Americas during all the intervening 1,700 years and was the foundation cause of the Inquisitions as well as the Genocides across the Americas, in Australia, much of Africa, and also had substantial influence in the slaughters of millions of Vietnamese and Koreans in those two wars.

To put the above alliance of church and state in context, the first 250 years of that alliance killed every educated person all around the Mediterranean, there were no more educated people to run governments, and that dropped Western Culture into the 700 years of the Dark Ages. Before its burning, the Library of Alexandria had a functioning steam engine and research has uncovered they also had harnessed electricity. This means the world would have had cars, trains, planes, radio, TV, and all the rest of a modern economy 1,300 years go if that slaughter of society’s best had not occurred. With thousands of nuclear weapons deployed and imperialism collapsing, the current ongoing alliances has the potential of destroying the world.

A great several-thousand-year historical education by Professor Michael Hudson which is tied into today’s financial crash: The Financial Barbarians at the Gates Jeff Nielson explains it further.

This two-page-read, An Understandable Full and Equal Rights Economy in 170 words, is an efficient capitalist economic structure in which wealth extraction, such as described in the above blogs, cannot develop.

And it is all collapsing once more

Ambrose Evans Prichard explains why the world economy will continue to shrink. —-Simon Parry provides more evidence. Quite simply, world capitalism is crumbling and, if war can be avoided, the world governing and economic systems will be radically changed.—-Walden Bello — and the conclusion of our own research, the simplicity of eliminating poverty and war will stun you, provides complimentary examples of the massive necessary changes.

Mike Whitney on how the American Congres was stampeded into rescuing the very  people who caused this financial crash. — See alsoDonald L. Barlett and James B. Steele’s  explanation of how that money was simply thrown at bankers, even those who did not need or want it. While they threw money at themselves, they had to throw it at others or the theft would be too obvious.

Matt Taibbi, best of all blogs on the subject, explains how the the big boys of the naked short sellers had consumed all the small companies, started consuming each other (Bear Stearns, Lehman Brothers, Merrill Lynch disappeared), the takeover of the Fed, the Treasury, and the government by lackeys of the remaining two (Morgan Stanley, Goldman Sachs) to pour newly created money at themselves to stave off their own collapse. My view is these thieves all know this economy is going down and their massive salaries and bonuses are going into safe havens such as gold so they come out on top.

Ambrose Evans-Pritchard on how credit (loans) within the banking system still shrinking at depression era levels (August 2009) belies the claims that this economic collapse has bottomed out. Ellen Brown alerts us that investors in mortgage backed securities may end up with no access to the courts to collect their money or repossess their property.

Ellen Brown again on  socially owned banks being always more efficient than private banks. Her story is also a key tenet of the above 170 word thesis for full and equal rights for every citizen of this earth addressed above and below.

Tony Benn explains how Western democracies have at all times in history been under the full control of the wealthy and powerful  and we still have to fight today, both at home and around the world, to establish true democracies.

If you have any doubt that Western history is primarily “plunder by trade,” read John Pilger.

Stephen Mihm alerts us that decades ago Hyman Minsky demonstrated why capitalism will inevitably crash.

Over 100 years ago, William Morris predicted the eventual total corruption of capitalism and laid out a Utopian, efficient, economy similar to what we have done (order or read on line).

Judy Rebick tells us the developing world is rapidly discarding the historic system of theft of their wealth.

Examples of the corrupt structure of different sectors of the US Internal economy

The total corruption of capitalism as currently structured is being exposed. Mark Ames and his description of the same investors buying up the life insurances of the ill while simultaneously battling to prevent affordable health care is a good example. Films such as The Corporation,” a 145 minute film by Mark Achbar, Jennifer Abbott, and Joel Bakan, and Michael Moore’s “Capitalism: A Love Story,” fully lay out this corruption. Nikki Alexander also does a great job.

Nomi Prins explains to us the simplicity and low costs of plain vanilla loans within our banking system and the enormous costs of the totally non-productive wealth extraction process within the ethereal world of high finance banks have expanded into.

From a novel and mind bending direction, Matt Bivens explains that same wealth extraction process.

From a third perception point Sarah Anderson and Sam Pizzigati explain that ongoing theft of our wealth.

Mark Ames again explaining the collapse of communities as values fall. These debts are the unearned wealth being loaned back to those from which it was extracted.  had to be repaid even as jobs and retirement funds disappeared. Many now realize these massive sums of finance capital are inefficient and unproductive but few realize it is unearned, extracted, wealth. That story of unequal property rights law, as applied to nature’s resources and technologies, denying others their rightful share of what nature offers to all for free (the 170 word thesis addressed both above and below), stands almost alone in The Institute for Economic Democracy’s (our) work.

Les Leopold on how, through the their control of the totally non-productive ethereal world of high finance, the top 1% gained wealth during this financial collapse while the producers of that wealth became impoverished.

Robert Fisk’s explanation of how the unearned massive accumulations of the wealth, belonging to us all in roughly equal shares, addressed by the authors just above, and now collapsing the entire capitalist system, is spreading across the blogosphere like wildfire.

Learning how the pharmaceutical industry is more a wealth extraction industry than a protector of our health (drugs marked up 2,000 to 500,000 percent over the same generic drugs and many drugs causing severe health effects and deaths) gives us the knowledge to both protect our health and join the struggle for single payer health care.

The above blogs tell us that most finance capital is only extracting wealth from the economy. William K Black explains this the clearest.

The Mandelman Matters blog explains a win at the Supreme Court level which could slow down this wealth theft machine.

The foundation concepts or our research, An Understandable Full and Equal Rights Economy in 170 words, tells us that most this finance capital (misnamed as profits) is unearned. This unearned wealth is far more than the wealthy can ever spend or find a safe place to invest.  So those sums just get larger and larger and are “invested” in the totally non-productive gambling games addressed by the authors just above. We need you, the reader, to connect all the dots between the “unequal property rights laws denying others their rightful share of what nature offers to us all for free” (the same above 170 word thesis) and today’s unproductive, unearned, wealth masquerading as earned wealth.

How control of our perception protects wealth and power

We need to understand how The Wealthy Hard Right has Established NGOs (Non Governmental Organizations), Given them Beautiful Names, and Filled up Most the Political Space.Part II and Part III. In Democracy: A Grand Strategy for World Peace and Prosperity I Christianed similarly established international NGOs “Destabilization Foundations.” There are a few truly progressive NGOs but, so as to control the perception of the masses, most the money is poured into hard right think tanks these same people established for that purpose.

Antonia Hoyle and Fidelma Cook explain AbdelBaset Al Megrahi, the Lockerbie Bomber, was released because the 20 grounds his lawyers were ready to file for his appeal would surely prove the courruption in his first trial and his innocence. We include this here because such astounding proof of railroading innocents to prison just to damage targeted countries will receive little press in America.

Galal Ghazi alerts us to the massive spike in cancer and birth deformity in Iraq. This alerts us to the eventual destruction of the Iraqi gene pool as we pointed out in Economic Democracy: A Grand Strategy for World Peace and Prosperity, p. 83, 2009 edition, would eventually happen. Birth defects in the worst affected areas are now 25% and cancer in those areas have increased 250%. The American corporate media never touches this subject so most Americans may never learn of this tragedy imposed upon the descendants of the cradle of civilization. But the rest of the world will know and, along with the massive deaths they have imposed all over the world the past 60 years, America will be judged as one of the most brutal empires of all time.  See the articles grouped with Fabricating Incidents to Start Wars and American Airmen Finished Out Their Lives In Soviet Prisons.

Thinking we are free thinkers is the very heart of how we are controlled (four parts). Almost every society, especially the violent ones, control the perceptions of their masses.

The allied empires of Europe and America are going down and taking much of the world down with them.

As in the protracted death of any beast, its death throes will create massive havoc. We anticipate major parts of the world abandoning the dollar and forming their own trading currencies. Go to The 21st Century Will Be Determined by the Rapidly Emerging World to understand this process.

The blogs on the collapse of Europe and America are coming in so fast that to keep listing them here would be abusing you. Go to and order Information Clearing House delivered to your inbox every day.  Look over every day.  Both of them publishing the top blogs from other blogsites keep you well informed.  When the collapse is on in earnest, or if they are able to stabilize (actually re-balance) the world economy by impoverishing labor while the wealthy retain their massive stolen wealth, as the powerbrokers are trying to do, we will start posting those results.

Full & Equal Rights: providing all a quality life while reducing labor and resource use by half

Sunday, March 22nd, 2009

By J.W. Smith

Dear Dr. Smith, To me the work you are doing represents the highest expression of patriotism and compassion for humanity found on the planet today. After reading your work, one has to totally reset one’s mind. Let me know how I can be of assistance to your efforts to create a sustainable, socially just world for all. Respectfully, Peter Lorenz, Editor, Peter’s Picks.

If you cannot name an essential social service not fully funded under this economic/financial thesis, even as all taxes disappear, and if you notice that there is virtually nowhere the crafty can gain unearned wealth, you have just agreed this is right and both classical and neoclassical economics, with the exception of a very few aspects, are only justifications of a system of theft of what is properly your, my, and every citizen’s wealth.

Summary of my one-hour-presentation at the UN General Assembly Hall

UN General Assembly Hall 03/05/2009, United Nations International Students Conference, UNIS-UN (see slides or view 70 minutes into the webcast).

  • Visualize a fertile valley 10,000 years ago with fruits, nuts and vegetables growing wild along with lush thatch for building shelters. The new settlers have only to pick their food, build their thatch homes, and, once that home is built, relax most the day.
  • A selfish, greedy, cunning cabal form and each lay claim to a part of the best land. They make a pact with toughies that they will share the spoils if they protect their unequal, and unjust, “property rights.” The meek, mild, and law abiding now have to share the food they pick with those “greedy owners,” have to build their houses, and provide any and all other services.
  • The cunning go on to claim their unearned wealth on through history, and those are the property rights laws, as applied to nature’s resources and technologies, denying others their rightful share of what nature offers to all for free, that are still in place today.
  • The primary cause of poverty in the middle of plenty has been uncovered. The Sheriff and the courts are today enforcing the very same unequal rights the cunning laid claim to 10,000 years ago.
  • This exposes most current finance capital as both unearned and not very productive. In the thesis below, note how, even as taxes disappear and honest capitalism is fully retained, those rental values paid to ourselves (a redirection of the flow of money) will fully fund all the social services currently starved for money.

This economic thesis eliminates the unequal economic structure created by those many, many cabals over the centuries:

An Understandable Full and Equal Rights Economy That Takes Only 170 Words

A utopia can actually be this simple:

  • By paying land (resource) rents to ourselves (socially collected), a citizenry is quintuply repaid through those continually circulating social-credits building roads, railroads, water systems, sewer systems, and electric grids (any natural monopoly), as well as funding governments, providing education, health care, and retirement.
  • Infrastructure and populations, not capitalists, establish the use-value of land, of other natural resources while their rental values provide the social credits to fund all essential social services.
  • Restructure to cooperative capitalism as described herein, and taxes disappear as employed working hours and consumed resources drops by half and all enjoy a quality, secure, life.
  • This requires sharing the “productive” remaining jobs and equal pay for equally-productive labor.
  • With socially-owned banks, each region of the world, each nation, each region of a nation, each state, each county, each community, and each entrepreneur has equal rights to their share of both created and saved finance capital (created money and savings). With those rights, entrepreneurs (private industry) will fill every niche within the production-distribution process. Virtually all unearned monopoly values disappear (170 words).

Between 1979 and 1984, in only four short years, under socially-owned banks and socially-collected resource rents, “the number of rural Chinese living in poverty declined from more than 200 million to 70 million” (Jean Dréze and Amartya Sen, Hunger and Public Action, Oxford: Clarendon, 1989, p. 216.). So this thesis of full and equal rights eliminating both poverty and war has already been proven.

With the redirection of the flow of money under this legal structure providing all essential services, with each citizen fully understanding their rights within this new legal structure, and with ombudsmen and ombudswomen refereeing disputes, legislators need meet only occasionally.

All can visualize that honest economy in action providing them a quality life and each will know immediately if some group, or person, is claiming superior rights such  as those cunning did thousands of years ago.

Banks are  social technologies well understood for centuries, there is nothing there to own beyond a little brick, mortar, and furniture.  Bank labor should be well paid but “profits” of socially-owned banks, along with resource rents and normal usage charges, will fund all essential social services.

There are no capitalized (monopoly) values in the above honest economic structure; there are only use values. (Capitalized monopoly values are only Marx’s surplus values claimed and capitalized.)

At this point, I normally ask: “You have never before heard anything I just said did you?” “No I didn’t.” “And you understood every word I said, didn’t you?” “Yes I did.” Could you see the flow of products and services one way and the money flowing the other way within that efficient economy?” “Yes I could.”

This thesis is so simple, logical, and efficient, people can follow those flows of money and commerce in their head after a 10 minute conversation.  Efficient community social credits now build and operate those natural monopolies while private industry efficiently produces and distributes consumer products and provides all other services.

All there is to economics is food, fiber, shelter, recreation, and care when in need. If you understand economics as laid out here, very little within the parameters of classical Western economics applies. If you are mentally within the parameters of classical Western economics, very little within cooperative-capitalism economics applies.

Take note: When you buy land under cooperative capitalism economics, you have all rights except the right to pay rental values (interest on capitalized values) to a bank. You pay that money to yourself (the social fund). As all taxes will disappear, on balance, the rental value you do pay to yourself is slightly less than what was once paid in taxes.

The disappeared capitalized values, the beating heart of monopoly capitalism (theft capitalism), were (currently are) nothing more than unearned monopoly values. This honest economic structure converts those unearned values into your, my, and everybody’s earned use-values.

Both taxes and poverty disappear even as employed working hours drop by half and the pressures on resources and the environment are alleviated roughly to the same degree. That savings is the half of our labor and resources currently wasted within the superstructures operating those monopolies we are told do not exist. (The waste of labor is actually well over 50%.)

With seven billion people on this earth, each are entitled to 1/7billionth of both the rental values of nature’s wealth and the profits of banks. Paying both those monies into the social fund and expending them on infrastructure, education, health care, retirement, and the now very small governments, each citizen is receiving their proper share no matter where they travel within the societies so structured

At first glance it appears each citizen has gained those annual earnings and, once the remaining productive jobs are shared and each equally paid for equally productive work, the lower paid will have gained. However, the big gain is that money is no longer flowing through monopolies to those non-productive monopolizers, and the waste of resources disappears. All that is left is the real economy fully visible to every intelligent citizen as each work only two days a week for that quality life. 

With citizenry voting directly on—and emplacing full and equal rights in—their laws and constitutions; Cooperative Capitalism governments would have so little to do they would only meet occasionally. Being able to visualize the entire restructured efficient economy, the citizenry would be very close to governing themselves.

Everything needed to understand an honest efficient economy is in the above few words. We have tested it many times and, almost without fail, this simple thesis is understood and visualized by all. That just below is only saying the same thing with more supports.



We appreciate acknowledgment as to where this thesis came from. However,  we encourage any and all to take this school of thought as far as you can. We think it stands alone but appreciate being alerted if it is out there somewhere else.

Since this has the potential of eliminating poverty, war, and taxes, would you please alert all your contacts, newsletters, list serves, media contacts, etc.

When rental values of nature’s wealth is paid to ourselves (society), it is our earned wealth paying all essential social costs which are currently starved for funds.

The current system of theft of your and my wealth by the powerful was established centuries ago; the privatization process. Exclusive title to nature’s wealth is the same system of theft as exclusive title to a slave. Those laws, as applied to nature’s resources and technologies, are aristocracies laws, the very culture we supposedly, but unsuccessfully, evolved from.

We are not talking about labor-created values which are properly exclusively owned. We are talking only about values created by nature which are properly only conditionally owned (this includes the natural processes of nature such as banking). Society should collect those rental values which, along with the profit of socially-owned banks, provide the social credits financing all essential services (those used by all).

Current unequal property rights laws cause most poverty and protecting the massive wealth accumulated under those unequal rights is the cause of most wars.

Unearned and unproductive capitalized monopoly values, which is 95% of all finance capital at the top of today’s bubble, are transposed into pure use-values which remain with you, me, and all other citizens by simply paying the rental values of nature’s wealth, the profits of social technologies (via a drop in consumer prices of 50 to 80%), and the profits of banking, to ourselves.

Fifty percent of our labors and half our resources are wasted within the superstructures operating those monopolies we are told do not exist. This includes conspicuous consumption, the massive military, and their wars protecting this massively inefficient, unjust, and unequal social and economic structure.

Conspicuous consumption totally disappears as soon as all are paid equally for equally productive labor. And the employed workweek drops by half, or more, as the remaining productive jobs are shared.

The elimination of monopolies other than land and banking, discussed below, do not add to the social fund. However, through the cost of consumer products and services dropping 50%, or more, as that inefficient structure is eliminated, that earned wealth remains with us. That savings is mirrored in the 50%, or greater, reduction in employed labor time which must happen so all will have a job to “earn” their living.

We are all concerned with poverty, hunger, inequality, and global warming (or nuclear war) making large parts of this earth uninhabitable. This simple thesis, understandable by all, that has been kept from us for centuries by power and wealth protecting their power and wealth, can be the awakening that destroys their power, restructures the world to efficient economies, and reclaims the stolen wealth which belongs to us all in relatively equal shares.

The ethereal world of high finance (massive sums of unearned money) and inefficient corporations are converted to efficient banks and corporations with all aspects of the economy locally, fully, and easily funded. As financial warfare is a major cause of poverty and underdevelopment, this requires a dual currency system–each economically viable region creating their own currency and a digital world currency (it cannot be counterfeited) protecting the value of those regional currencies as it funds world trade.

Assuming economically viable regions throughout the world establish the honest property rights laws and monetary structures addressed above, most social problems will be completely resolved. Funds are available for education, Universal Health care, retirement, infrastructure (roads, water and sewer systems, electric power), and funding the much smaller governments, all social needs currently starved for funds. As further explained below, poverty and famines disappear and free time for family interactions are doubled or even tripled.

Utilizing this legal structure, the developing world regains title to their resources, turns those finance streams to funding education infrastructure and industry, establish an efficient economy, and they too can eliminate poverty within two generations.

A further explanation of these yet unrealized full and equal rights

While riding a bus to my hotel in New York to my presentation at the UNIS-UN Conference, United Nations General Assembly Hall, a fellow passenger asked me to explain this further. I said, “See these huge skyscrapers we are going by? The value of the land they are on were put there by society through building roads, water systems, electric systems, gas lines, communication lines, etc. Except for some improvement in farm soils, which is far less than the values destroyed by corporate farming, not a dime of that value was put on there by the owners of that land.

Society need only convert those exclusive titles to land to conditional titles paying those rental values to ourselves (society). Then use that money flow to build and maintain the above described infrastructure (roads, water systems, etc.), run governments, pay for health care, education, fund retirements, etc.

Industry and consumers within this efficient economy, primarily local in nature, is funded by socially-owned local banks whose profits add to the social fund. Everything is local and visible and all need for the ethereal world of high finance, fully 95% that currently financing the primary and secondary monopolies and 100% of that in the derivatives-credit default swap markets and other totally non-productive endeavors, disappears.

The massive trillions of dollars extracted from the masses and other nations have to be reclaimed by each economically viable region issuing new currencies to build infrastructure and first industries.  The value of those regional or national currencies are then protected by a newly-created digital world currency (no bills or coins and thus cannot be counterfeited) financing trade between those economically viable regions.

This is the exact opposite of current world monetary policy where currencies of impoverished nations, and occasionally currencies of powerful nations, are consciously and intentionally destroyed so as to steal their wealth. And this is only one aspect of how wealth is stolen through Plunder by Trade. See also The simplicity of eliminating poverty and war will stun you.

A careful analysis of the above 170 word economic thesis demonstrates that far the greater share of today’s finance capital is unearned. Society should have followed theft capitalism’s rules during this financial crash and let those financial institutions go bankrupt instead of bailing them out to the tune of trillions of dollars.  A large share of that unearned wealth would have then been reclaimed through those unearned funds simply disappearing as debts were cancelled.

The simplicity of eliminating the monopoly structure that President Barack Obama and his economic recovery team are avoiding

Exposing monopolies we are told do not exist should alert trained theorists there are substantial shortcomings in what they are taught. Only the first paragraph below is duplicated above:

  • The only labor-created values in banking is a little brick, mortar, and furniture. There is nothing else within that natural “social structure” to own except exclusive title licenses. Therefore, identical to land and other resource rents, the profits produced by that natural monopoly is properly paid into the social fund. Ellen Brown explains it clearly. This video of CommonGoodBank, a caricaturization of Robinson Crusoe, parallels this thesis.
  • Even as their doctors are better paid, England provides better health care to all her citizens for 43% the per capita cost as America where possibly 40 million essentially have no health care under “exclusive titles” to all aspects of medicine and care. Germany provides equal quality health care cheaper through a Taylorist efficiency study eliminating the wasted labor and unearned profits we describe.  ( and alerts us that the lifespan of Americans would jump 10 years if both transfats and corn syrup were eliminated from our diet through a total reform of the food industry and the Food and Drug Administration. Example, 44,000 died from Vioxx before an FDA employee could take it no longer, blew the whistle, and he said “five other drugs were highly suspect.”) The full story is an ongoing crime scene. Heart attacks dropping 24% and the more severe attacks dropping 62%, over the past decade as transfats are being phased out points the way.
The Bizarre Theft of Dr. Stanislaw Burzynski’s Miracle Cancer Cure By Meryl Ann Butler,,, explains how millions of cancer patients not only need not have died but the costs of all their treatments should have been much less.

  • Pay inventors well, place their inventions (technology, drug patents in the above example) in the public domain, and 85% of the gambling casino’s called stock markets, where those exclusive title (unearned) patent profits are collected, disappear, and the costs of consumer products and services drop 50-to-80%. Staying with the above example, this is all evident when one realizes that prescriptions which cost hundreds, or even thousands, of dollars are produced for $1 to $10.
  • Most insurance beyond life insurance is necessary and should be a social or human right. Establish a centralized office to automatically handle insurances and all those individual insurance offices and their unnecessary labors, wasted resources, and unearned profits, as well as their overcharges, disappear.
  • Where the rental value of land, resources, and banking profits are properly paid into the social fund, the wealth currently extracted from society by patent, medical, insurance, legal monopolies, and others are returned to society through much lower prices for products and services
  • Elimination of all monopolies establishes full and equal economic rights for everybody, automatically eliminates law monopolies, all welfare disappears except for the totally disabled, most courtrooms and prisons would not be needed, etc.
  • On about one-third of a page, the complete monopolization story is again told. I trust trained theorists will notice how easily every citizen is fully cared for when each have full and equal rights. They should quickly realize something, actually almost everything,  is very wrong with current economic theory.
Again: If you cannot name an essential social service not fully funded under this economic thesis, you have just agreed that this is right and both classical and neoclassical economics are nonsense.
Calling extracted money (unearned money) profits right along with honestly earned money totally distorts reality. Calling it extracted/unearned wealth tags those thefts and alerts everybody where to look for the errors within our economy, within our property rights laws as applied to nature’s resources and technologies, and in our philosophies which are little more than justifications for these systems of theft.

The waste within monopolized sectors of the economy ranges from 40% (the private insurance industry) to possibly 80% of the money expended (banking and monopoly patents). Few realize this waste is even there let alone that the cause is unjust and unequal property rights law as applied to nature’s resources and technologies. Theorists are typically fighting just one battle while they should be describing the full range of unjust property rights laws which causes the automatic formation of monopolies we are told do not exist.

The existence of those monopolies proves our current governing economic theories are little more than justifications of systems of theft. As soon as one steps into the world of those from whom that wealth is stolen, and study out how, it makes no sense at all. In each of the links just below, notice that those massive sums are obviously unearned monies.

    The Unearned, Unproductive, and Ever Expanding, Ethereal World of High Finance

    Thank you  William K Black for Quantifying that massive, ever expanding, unearned, and unproductive finance capital:“Forty years ago, our real economy grew better with a financial sector that received one-twentieth as large a percentage of total profits (2%) than does the current financial sector (40%).”

    Michael Hudson came up with close to the same figures. Those statistics tell us that only 5% of current finance capital is actually running the economy and the remaining 95% should be returned to the citizenry from which it was extracted (stolen). If we had honest and efficient property rights laws, as applied to nature’s resources and technologies, that massive wealth would have gone straight to all citizens in roughly equal shares.

    That ethereal world of high finance, all finance capital above that needed to run an efficient economy, is not only totally non-productive, they  extract $7 from the economy for every $1 of wealth they create. Andre Damon explains that, over a period of five years, the income of the wealthiest increased by a multiple of  five while others’ income remained flat. Matt Taibbi describes the outright scams for extracting even more wealth from the rest of us once so much unearned money has been piled up no place can be found to invest it.

    That massive, ever expanding, unearned, and unproductive finance capital, and the poverty of those whose rightful wealth has been appropriated, is specifically due to the inequality of  property rights laws, as applied to nature’s resources and technologies, denying others their rightful share of what nature offers to all for free.

    Nomi Prins explains to us the simplicity and low costs of plain vanilla loans within our banking system and the enormous costs of the totally non-productive wealth extraction process within the ethereal world of high finance that banks have expanded into.

    From a novel and mind bending direction, Matt Bivens explains that same wealth extraction process.

    From a third perception point Sarah Anderson and Sam Pizzigati explain the ongoing theft of our wealth.

    Les Leopold explains how, through control of the totally non-productive ethereal world of high finance, the top 1% gained wealth during this financial collapse while the producers of that wealth became impoverished. David Degraw also explains how the banksters are extracting an ever increasing amount of wealth from middle class Americans and the poor.

    Robert Fisk’s explanation of how the unearned massive accumulations of the wealth, belonging to us all in roughly equal shares, addressed by the authors just above, and now collapsing the entire capitalist system, is spreading across the blogosphere like wildfire.

    William K Black again explains it clearly. Our research tells us that most this finance capital (misnamed profits) is unearned. This unearned wealth is far more than the wealthy can ever spend or find a safe place to invest.  So those sums just get larger and larger and are “invested” in the totally non-productive gambling games, derivatives etc, addressed by the authors just above.

    Matt Taibbi, best of all blogs on the subject, explains how the big boys of the naked short sellers had consumed all the small companies, started consuming each other (Bear Stearns, Lehman Brothers, Merrill Lynch disappeared). He explains the takeover of the Fed, the Treasury, and the government by lackeys of the remaining two (Morgan Stanley, Goldman Sachs) to pour newly created money at themselves to stave off their own collapse. My view is these thieves all know this economy is going down and their massive salaries and bonuses are going into safe havens such as gold so they come out on top when it totally collapses.

    The Mandelman Matters blog explains how a win at the Supreme Court level could slow this wealth theft machine down.

    With a 99% success rate, Mondragon cooperatives are rapidly restructuring world business/production models. If most industries turn to that model as the world economy collapses, then they must share their jobs. If they do not, a new monopoly system will have replaced the current one.

    Aetius Romulous has a similar property rights thesis.

    We need your help in connecting the dots between “unequal property rights laws, as applied to nature’s resources and technologies, denying others their rightful share of what nature offers to all for free” and today’s unproductive, unearned wealth masquerading as earned wealth. Instead, almost all theorists and writers still write as if this stolen wealth was earned wealth and this error denies themselves and their readers seeing how easy it could be for us all to live a quality life while employed less than half today’s normal working hours.

    That this unearned (extracted) capital is unproductive is now, as per the authors just above, written about all over the place. But they and others have not yet made the connection between this massive unearned, unproductive, wealth and “The property rights laws, as applied to nature’s resources and technologies, denying others their rightful share of what nature offers to all for free.” As soon as they do, their already high quality writings will be explaining this theft of our wealth in far more depth.

    Before they can do this, these theorists and authors must realize the theft of our wealth goes far beyond land. The monopolies described above, banking, insurance, pharmaceuticals, medical, and patents (technology), plus the natural monopolies–railroads, electric and water systems, communication systems, etc–collectively and unproductively extract far more money from the economy than do land monopolies.

    This is because there is only a small amount of wasted labor and resources within land monopolization while the waste of labor and resources within the other monopolies addressed just above is well over 50%. It is their elimination which would reduce our necessary working hours by 50 to 60%, even more counting the elimination of conspicuous consumption which we will now discuss.

    As soon as society has equal pay for equally productive labor and they share those productive jobs, conspicuous consumption will disappear. No one will pay $3 million for a daughters wedding, travel the world in their personal airliner, tour the ocean floor for six weeks in their own submarine with picture windows, buy a $100,000 or even a $50,000 automobile, or build a 25,000 square foot or even a 5,000 square foot house, because their income would not cover it. Seven hundred dollar shoes and all those false identities will also disappear. The current elite can expend such money because it is they who are extracting wealth from you and me while producing little or nothing of value, certainly not creating even a small fraction of what they are consuming.

    Not only would one’s income not cover, no one would expend such money and leave themselves short on money for clothes, food, socializing, etc, all far more important than big cars, big houses, and big weddings.

    Conspicuous consumption goes far beyond those false identities. One conspicuous consumer was wearing cowboy jeans he paid $100 for. His friend said, “I paid $15 at the thrift store for a great suit.” “And what do you think of yourself” said the cowboy wannabe. A large share of this nation’s shoes, clothes, where one eats, etc, are priced for conspicuous consumption and most that will disappear as soon as labor is equally paid for equally productive labor.

    The savings of an efficient society with full and equal rights will be massive. With most of their days free to do as they want, their most enjoyable structuring of time will likely be the most productive. Permaculture community gardens will spring up within communities to provide highly nutritious fruits and vegetables for little more than helping the master gardener and personally harvesting the food just before eating it. Carpenters overseeing construction, along with modest labor charges or trading labor by others would build homes, garages, etc. For a very modest price. Seamstresses would sew beautiful and unique clothes at low costs. Currently beautiful-but unsaleable-paintings, wood carvings, pottery, etc would decorate many homes at modest cost or for only the cost of traded labors. Most mechanical repairs would be done within the community and only those which required expensive tools would require downtown shops.

    Community barbecues and dinners with neighbors will replace going out to fine restaurants and be far more enjoyable. Community projects for renewable energy would retrofit homes with solar panels, wind farms, etc. As our research demonstrates, almost all education can be done at home over the Internet (the practice is spreading fast and picking up speed). All school bus drivers, 98% of the teachers and professors, as well as school support staff will be working less than half their current hours as they share the remaining productive jobs.

    Most automobile use is to and from work. Most that expenditure of time, money, and fuel disappears. All this savings means less paid employment, and yet a higher quality life for every citizen of this earth. If the entire world had been developed through sharing technology as per this thesis, there would have been no poverty, few wars, and all the world’s citizens would have had a quality life 50 years ago.

    Counting elimination of wars protecting the current  monopoly structure and the automatic elimination of conspicuous consumption through sharing those remaining productive jobs and equal pay for equally productive labor, resource use lowers enough to protect against global warming even as each citizen of this world has a quality life.

    Dear browser, Please study this thesis carefully and point out to us any social need that is not automatically provided within this full and equal economic rights structure. We think they are all covered.

    We are all in this together. Everyone of you are sincerely looking for those answers. If you recognize how easily a society can be cared for within this full and equal rights structure, I would appreciate your support getting this to the world. Alert your contacts, put an alert on list-serves, alert any media you feel might be interested, and link from your websites.

    Supporting information

  • In Principles of Political Economy (Great Mind Series, Prometheus Books, 2004), John Stuart Mill (1806-73) addresses the early beginnings of today’s monopolies. A study of the 16 pages detailing the subjects within the book page by page turns up many examples. But nowhere does one see nouns branding this process of extraction and accumulation of unearned wealth for what it is, the theft of wealth produced by nature properly belonging to all in roughly equal shares. Nor does one find quantifications of that wasted effort and unearned wealth.
  • Henry George (1839-1897) is the recognized authority on land monopolization but, except for an occasional phrase and a foray into world trade, he did not go beyond land.
  • The language usage of Pierre-Joseph Proudhon (1809-65) and myself, describing this phenomenon are essentially identical.
  • Obviously influenced by Proudhon, throughout the first half the 20th century Thorstein Veblen, Stuart Chase, and Ralph Borsodi quantified some of those wasted labor and resources.
  • A few industry specific researchers quantified wasted labor and resources within insurance, health care,  law, etc during the 2nd half the 20th century. In this 21st century, a few are quantifying the waste in banking and pharmaceuticals.
  • The movie, The Corporation, addresses the privatization problem deeply in the same language we use. Ten minutes laying out this 170 word thesis as addressed on the first page would be a great fit.
  • Nicholas Georgescue-Roegen, Hazel Henderson and others also proved that economics, as currently taught, has, except for creating wars, poverty, and misery, little connection to reality.
  • Hundreds of deep exposure books are being published today, occasionally they and a few economic classics give a nod to Henry George principles, but none address the inequality of property right s law throughout a capitalist economy, as applied to nature’s resources and technologies, which causes inequality, poverty and war. Thus, when theft capitalism comes out of this financial collapse, just as in all previous collapses, unless the world wakes up, the same unequal property rights laws that caused it all will still be in place.

The forthcoming book from which all the above was taken, Cooperative Capitalism: No Poverty No War No taxes, will be out sometime in the summer or fall of 2011.

Related links:

Please help spread the word

Please help us spread this simple thesis for elimination of poverty and hunger across the world. We expect to learn from others as they comment. Please comment yourself.

Put this thesis into your own arguments and develop your skills for quickly reaching people on subjects dear to your heart.

With the exception of insanity, all problems will be at least partially alleviated and the world’s gravest problems are fully taken care of.

We appreciate acknowledgment but we are placing this short thesis in the public domain for all to use. This thesis stands alone. The good minds and broad frames of reference of others can flesh this out into a fully developed school of thought.

Thank you. Respectfully, J.W. Smith and the IED team

Our presentation at the UNIS-UN Conference, United Nations General Assembly Hall

Sunday, March 15th, 2009

On March 5th, 2009, we were given the opportunity to present at the United Nations International Schools conference, at the United Nations General Assembly Hall

The theme for this year’s conference was “The Food Crisis, A Global Challenge” and included a number of prominent speakers. The conference started off with a speech from UN Secretary General Ban Ki-moon, followed by Daniel Gustafson, director of the Liason office for North America Food and Agriculture Organization of the UN.

J.W. Smith was third to speak. The presentation was on eliminating poverty and hunger once and for all. It went quite well with a lot of positive feedback from both student advisers and the students.

You can also view the conference webcast. The presentation by J.W. Smith is third out and goes well beyond the summary below.

Here are the slides presented:

Below is a short summary of the lecture that went with those slides.

Reaching Doubting Contacts and Audiences in 20 Minutes

Picture a fertile valley 10,000 years ago with fruits nuts, and vegetables growing wild along with lush thatch for building shelters. All the wandering settlers who found it have to do is pick their food, build thatch homes, and relax most the day.

But a cunning cabal forms and each lay claim to a part of the land. They make a pact with toughies to share the spoils if they protected their “exclusive title to what nature offers to you, me, and everyone for free.

The primary cause of poverty among plenty

The primary cause of poverty among plenty is “Property rights law, as applied to nature’s resources and technologies, denying others their rightful share of what nature offers to all for free.” Others have to share the food they pick with those “owners” and those protecting their “property,” have to build their houses, and provide them with other services while those cunning go on to claim more unearned wealth throughout history.

Today that same protection of exclusive title to what nature offers for free is accomplished through law. Seventy to 130 years ago, this error in property rights law was being studied and taught right in the university (Professors John Stuart Mill, Alfred Marshall, Thorstein Veblen, & others).

We have never had a “true” democracy

A good place to start your thinking on how this happened is Greece which is claimed to be “the birthplace of our democracy.” There only “land owners” could vote. That monopolization of the voting privilege carried though to the American political structure. Eventually and slowly other “men” were allowed to vote.

Women did not get the right to vote until 1920 and for all practical purposes African Americans did not gain that right until the 1960s.

Due to the massive wealth appropriated from you and me funding lobbyists, which means funding the elections of most legislators, those “rights” are still illusions. It is still effectively “their” government just as it was when those “exclusive titles to nature’s wealth” were first established thousands of years ago and protected by power and legislators of every shade ever since.

The proof is capital claiming all the gains in wealth produced by the ever-increasing efficiencies of technology the past 35 years (30% per decade compounded) plus a part of what once went to labor.

Wages are lower today than they were in 1972 but we do not realize it because the wives went to work to make up for that theft of labor’s proper share and today each family does have a higher standard of living.

But this is the economic story, not the political story and it is enough to know this thesis has a solid foundation in the classics. Please imprint in your mind:

Property rights law, as applied to nature’s resources and technologies, denies you your rightful share of what nature offers to all for free.

Our property rights laws are aristocratic property rights law

Your property rights law, again as applied to nature’s resources and technologies, is nothing more than aristocratic property rights law, exclusive title to nature’s wealth.

We are not talking about personal property which was built by labor and properly exclusively owned. We are talking about the wealth of nature which she offers to us for free.

This is why the powerful are privatizing everything in sight and why costs rise rapidly (frequently doubling) each time they do so.

Efforts are underway to privatize highways, water systems, and other social services. In this “monopolization process,” the descendants of those claimers of the wealth of nature 10,000 years ago, hope to privatize Social Security.

When Bolivia’s water system was privatized (monopolized), costs tripled as services went down. Bolivian citizens revolted, took back their water, prices dropped, services rose, and the legal system legitimized the recovery of everyone’s right to water.

Regaining our full and equal rights through paying resource rents to ourselves

We can each regain our rights to our share of nature’s wealth by paying land rents, meaning all resource rents, to ourselves (meaning socially collected) and using those massive funds to build roads, railroads, water and sewer systems, and electric grids (all natural monopolies). Those funds will also run governments and provide education, health care, and retirement which is the community process.

This is not socialism. This is the rental value of nature’s wealth, which is your and my wealth, funding the community process. We have only reclaimed what nature offered to all for free and we have more wealth yet to reclaim even as we retain the principles of “honest capitalism.”

Money and banking are properly part of the community process

Money and banking are centuries-old technologies—just as much a part of nature’s wealth as land, water and air—and thus are an integral part of the community process. The only tangible (labor created) values within banks are brick, mortar and furniture.

Operating those banks and paying for the use of those few tangible values are covered by ½ of 1% interest on loans.
Base Money is created out of thin air by the socially-owned Federal Reserve. Circulation of that socially-created money is our money supply. Thus they are also forms of wealth produced by nature and a key part of the community process.

Those earnings of nature are also properly paid to ourselves and used to augment the funding of governments, infrastructure, education, healthcare and retirement.

Currently your earned money becomes monopolist’s unearned money which is then loaned back to you. That unearned money, essentially the other side of the ledger of everyone’s unnecessary debts, grows greater and greater.
The huge gains from correcting today’s unequal property rights laws is your share not being appropriated from you in the first place. That is done through paying rent values on nature’s wealth to yourself (the community fund).

Other examples of eliminating the monopolization process

Health care is an integral part of the community process. For example: Britain provides coverage to 100% of her citizenry at 43% the per capita cost of America whose citizenry without health care is approaching 50 million.
Case proven. The superstructure above the monopolized health care industry in America claims massive sums of unearned money.

Another example, insurance: Social Security is retirement insurance operating on ½ of 1% of premiums paid. For every $2,000 you pay in, you get back $1990.

All except life insurance is essential. Yet market insurance requires almost 50% of premiums paid to cover costs and profits. For every $2,000 you pay, you get back only $1000.

Establish a central insurance office where banks or individuals can apply by mail, phone, or computer for home, auto, and business insurance and the costs drop to 6% of premiums paid.

The entire superstructure of monopolized insurance (offices and labor) is replaced by one central office. Again we prove monopolizations of the community process exist.

A third example, patents monopolizing technology: Those profits are collected through the stock market (the monopoly superstructure within that sector of the economy). This is wasted effort extracting wealth from you and me and doubling consumer costs in the process.

Simply pay inventors well, place those patents in the public domain for all to use and 85% of the casinos called stock markets disappear. Monopolies short circuiting the community process do exist.

The efficiency gains of paying inventors a capitalized value for their inventions drop consumer prices 50% or more and those unnecessary stock brokers and staff are available for productive employment.

An honest capitalist structure

This is an honest capitalist structure paying resource rents and banking profits to ourselves and using that money to fund the community process.

Wages cover food, fiber, shelter and recreation which are primarily provided by private enterprise.

Savings within that circulation of money is the multiplier factor building and operating industries which is also private enterprise.

The ethereal word of high finance, the 60% of all finance capital which is unearned wealth amassed through the private collection of rental values to nature’s wealth, simply disappears under honest capitalism.

All taxes disappear as employed working hours drop by half

By paying resource rents and banking profits to ourselves, meaning socially collected, citizens are quintuply repaid through those massive funds building roads, railroads, water and sewer systems, and electric grids (any natural monopoly) as well as funding governments and providing education, health care and retirement which is all part of the community process.

Restructure to that honest capitalist structure and taxes disappear as employed working hours drop by half even as all enjoy a quality, secure, life. This requires sharing the remaining productive jobs and equal pay for equally-productive labor.

Addressing the producers of our wealth, private industry, completes this economic thesis. Each region of the world, each nation, each region of a nation, each state, each county, each community, and each entrepreneur (that includes you) must have equal rights to their share of both created and saved finance capital (created money and savings).
With those full and equal rights within the community process, entrepreneurs will fill every niche within the production-distribution process which entails most economic activity and is properly privately operated.

Visualizing this efficient economy

You can follow those flows of money and commerce in your head and we will verbally do so now: Socially collected resource rents and bank profits run governments, build infrastructure, and pay for education, health care, and retirement which is the community process.

Those wages—plus those of private industry—pay for food, fiber, shelter, and recreation.

Entrepreneurs, providing the greater share of those wages, fill every private industry niche within the economy and funding is available.

There is your fully operational economy. Both the community process and private industry are fully visible.

An economic-property rights law thesis for full and equal rights in 170 words

By paying land (resource) rents to ourselves, meaning socially collected, a citizenry is quintuply repaid though those massive funds building roads, railroads, water and sewer systems, and electric grids (any natural monopoly) as well as fund governments, provide education, health care and retirement.

  • Infrastructure and populations, not capitalists, establish the use-value of land and resources and their rental values fund those same required infrastructures as well as essential social services (the community, social credit, process).
  • Restructure to the just described honest capitalist structure and taxes disappear as your employed working hours drop by half and all enjoy a quality, secure, life.
  • This requires sharing the remaining “productive” jobs and equal pay for equally productive labor.
  • Each region of the world, each nation, each region of a nation, each state, each county, each community, and each entrepreneur must have equal rights to their share of both created and saved finance capital (created money and savings).
  • With those rights, entrepreneurs (private industry), will fill every niche within the production-distribution process.

Thousands of books can be written expanding from this foundation. But, to avoid waste, monopolization, hunger, poverty, and war—which consumes over half our resources, wealth, and labor—an honest social structure must be built upon the principles of this simple, 170 word, economic treatise.

Most social problems are alleviated or completely resolved under this economic structure. Funds are available for Universal Health care, retirement, infrastructure, education, and funding governments, all social needs currently starved for funds. Poverty and famines disappear and free time for family interactions are doubled.

All the stated goals of Capitalism, Socialism, and Comunitarianism are attained and those living standards can be set within the earth’s capacity to provide resources and absorb wastes.

The gains for you and I are many: Both taxes and poverty disappear even as our employed working hours drop by half and the pressures on our resources and the environment are alleviated roughly to the same degree.

How did such an inefficient social structure such as we have today evolve? Throughout the past 800 years and yet today only powerbrokers protecting their monopoly position created these monopolization laws.

In Mercantilism as a Rent-Seeking Society, Robert B. Eklund, R Tollison and about 70 authors they reference on the subject—including Adam Smith and many other classics—address mercantilism, monopolization, privatization and rent seeking (both in world trade and internal trade) as being the same thing. Thank you.

J.W. Smith

We have only opened the door; help us expand this

Most funding problems we face today are covered within those 168 words. This simplicity came together as we prepared the conference presentation.

We have only opened the door. Your comments will further expand our and others’ understanding of this school of thought. The short list of professors 70 to 130 years ago point you towards classics on this thesis.

After explaining this to a listener for roughly 20 minutes, we ask, “You have never heard any of this ever before, have you?” “No I haven’t.” “And you understand everything said, didn’t you?” “Yes I did.”

We have tested this over and over, including it being the primary focus of this presentation at that UNIS-UN conference, and we reach everybody. Please refine this to your views of the world and make your own tests as to how easy it is understood.

Then teach others. Hopefully this will spread exponentially and we will all have done our little bit to eliminate hunger, poverty, and war.

With the exception of insanity, we can’t think of any problem that will not be at least alleviated under this school of thought for full and equal rights for every citizen of this earth and the biggest problems—hunger, poverty, and massive waste of resources—are almost totally eliminated.

We encourage each to put clothes on this 168 word full economic-property rights law thesis and write articles and books. We would like to be cited but it has all been said before so it can be used without fear of plagiarism. Our only contribution is assembling those individual stories and bringing that economic-property rights thesis down to as few words as possible.

Please blog your thoughts on this site. We want to learn from you and surely others do also. If browsers doing so keeps increasing exponentially, this expanded school of thought will be on this site for all to read and this school of thought will become firmly established across the world.

For that purpose, this author keeps everything he writes on this site to be read worldwide. The Plunder by Trade story is now understood around the world and developing countries are refusing to sign those unequal trade contracts.

This unequal property rights thesis is closely tied into the Plunder by Trade thesis. Since it is even more unknown, we feel it is crucial that it too gets out there. Thank you

Related links

Please let others know

Please help us get this simple thesis on elimination of poverty, hunger, and war to the world (newspaper editors, listserves, links from webpages, your contacts, etc.).

With it we reach anybody and everybody in 20 minutes.

Put this thesis into your own arguments and develop your skills for quickly reaching people on subjects dear to your heart.

With the exception of insanity, all problems will be at least partially alleviated and the world’s gravest problems will be eliminated.

Thank you. Respectfully, J.W. Smith and the IED team

The end of the free market system

Saturday, February 7th, 2009

By J.W. Smith

Predicting history in advance challenges one’s credibility. But, if the current collapse in Japan is a foretaste, the coming worldwide collapse spells “doom’ for free market capitalism.

Japan’s production collapsing 25% in three months

People must eat, be clothed, stay dry and warm, and they must socialize. If Japan’s economy continues its rapid collapse and the rest of the world follows suit, those needs can only be attained by local regional decisions replacing free market decisions.

Japan’s economic crash is currently 10 to 12 times more rapid than the collapse of America and Europe as they spiraled down into the Great Depression 77 years ago.

Industrial production fell 10% in December, 9% in January, and February is anticipated to drop another 5%. That is an accumulative industrial decline of 25% within three months.

Studying the crisis closely, Bank of Japan’s Governor, Masaki Shirakawa, warned, “The outlook for the Japanese economy has deteriorated dramatically and there is a high probability it will continue to do so.”

Stopping a financial-economic crash in its tracks

We won’t speculate on what will happen. We will simply lay out how this Worldwide crash can be stopped in its tracks, the collapsed monopoly system replaced by honest capitalism, and each citizen can be leading a quality life on half the labors and resources as within this inefficient system.

Production technologies are highly efficient and are becoming more so every day. It is Inequalities in world trade and inequalities in property rights law which is at the heart of the world’s crisis.

Over half that industrial capacity is wasted through social inefficiencies. This discussion will be on how to make social structures over twice as efficient as they are today.

If developed world farmers were undersold by subsidized agricultural surpluses from another society, their farmers could not sell their crops. They would go bankrupt, the tractor and machinery companies would go bankrupt, the millions of people depending on these jobs would be without work, resources and production of remaining industries would have to be sold to other societies to pay the import food bill, and the developed world would quickly become impoverished.

If countries not yet industrialized are sold “cheap” food, their natural resources must be sold to pay for that and the consumer products from the industrialized world. Debt traps are then put in place to maintain that dependency.

Once that monopolization process is in place, “free trade” becomes a method to siphon the wealth of the periphery, or even defeated powerful nations, to the victorious imperial centers of capital.

Witness what happened to the former Soviet federation when “free” grain poured into the Ukraine. The farmers in that “bread basket of Europe” could not sell their grain, did not plant the next year, the entire economy collapsed, and hunger was widespread.

After years of hunger, Malawi realized cheap imported food was the heart of their problem, subsidized their agriculture so they could compete and soon they were food exporters.

Not only can every country in the world feed themselves, if given the tools and financing their entire economy will become more productive.

In a reversal of the destruction of economies as addressed above, the money paid local farmers is spent for needed products and services and the people providing those services and products spend their “earnings” for their needs.

Known as the “multiplier factor,” this is the health of any economy. This natural efficiency was denied the developing world after colonialism supposedly collapsed. For the past two decades, this author has termed such undercover colonialism as “plunder by trade.”

To prevent future hunger due to loss of their topsoils, as has destroyed prosperous societies for millenniums, these collapsed nations or regions must turn to permaculture. This will build their soils even as far more food per acre is produced.

Under current economic rules of instant and high profits, this appears inefficient. But that is only because individual short term profits are considered, not community, regional, national, and world long term profits.

As we will be discussing, those short term profits are largely unearned while long-term profits sustain high quality lives for centuries or even forever.

A world trading currency protecting the value of all regional currencies

For each economically viable region to develop that balanced economy, a world trading currency must be developed for the specific purpose of protecting currency values within those regions. Economically viable regions can then safely print their own currency spendable only within their borders.

With their currency protected, and by trading access to resources for access to technology and training, nations and regions can print money to build local and regional industry.

Again, because they are protected by an honest world trading currency whose primary purpose is to protect all currency values, the wealth produced backs the value of the money created.

Rental values of natural resources, both from resources exported and those consumed internally, provide much of the funding as created currency circulates within that economically viable nation or region.

There is one irrevocable rule to efficient economies, production and consumption must balance. Under economic rules designed to channel massive wealth into the vaults of monopolists, ships, trains, and trucks passing in the night hauling the same products and commodities thousands of miles in opposite directions is economic insanity.

Attaining that balance once a world trading currency and locally created currencies are in place is rather simple. Massive surplus labor within every region can be mobilized by being apprentices collectively learning every job skill starting with the basics, food, fiber, and shelter.

Rapid training of skilled labor, rapid regional development

Apprentice permaculturists, homebuilders, and cloth producers work with master craftsmen as they ply their trade. Once trained they return to their communities as master craftsmen where they train others as they operate permaculture farms, build homes, and produce clothing.

Plants providing thread for cloth, such as flax or six-foot-high hemp, are among the most prolific in the world. So permaculture is a part of production of cloth and cheap exotic threads made from oil or coal will not be expensive nor will their use in such small quantities threaten the environment.

Houses for suburbs and outlying areas built from rammed earth, brick, or rock with ceramic interiors that will last for centuries are just as much local industries as farming and cloth production.

Skilled labor for high rise buildings within city centers has already been trained in all emerging countries. One need only apply the apprentice trainee principle to rapidly further expand that labor force and national or regional production.

Above outlines the essentials of a secure society—food, fiber, shelter, city centers and industries.

Labor to produce those essentials are trained locally and most production is local. Once regional infrastructure and economies are fully devleoped, modern technology is so productive that each worker need be employed only two to three days per week.

This outlines the essentials for a quality life for all, regional industrial production providing food, fiber, shelter, and recreation.

Today’s conspicuous Consumption is a carbon copy of aristocratic conspicuous consumption

Where all the resources and labors of the wealthy world goes now stands out clearly, primarily to maintain the “freedoms to travel” and being entertained once they arrive.

Those within the wealthy world run uptown for hamburgers, shop till they drop, have houses full of clothes, shoes that are seldom–or never–worn, their kids have closets stuffed with toys they never play with, there are trips overseas, cruises, annual vacations, and on and on.

The list of what a modern society is titillated with is endless. This is nothing more than Aristocratic conspicuous consumption functioning within modern economies with the spendthrift citizenry unaware that a large share of their wealth is just as unearned as was aristocracy’s wealth 200 to 800 years ago.

That massive unearned wealth unbalancing the world’s economies is the cause of today’s worldwide financial collapse.

Elimination of conspicuous consumption even as use of those “toys” increases and resource depletion decreases

When monopolization is eliminated and each equally and fairly paid for equally-productive labor, conspicuous consumption disappears but those toys—yachts, overseas vacations, etc, do not disappear.

They consolidate into the most pleasurable and cost effective items which are then shared by all. Under the principles of full and equal rights which includes equal pay for equally productive labor instead of one family having a yacht for year round use, 20 families will each have its use for one to three weeks of the year.

Going to fine restaurants and other entertainments are great but the costs to society for building those fine businesses and traveling to and from them is high. Instead, modern communications can bring movies and other entertainments into your living room while neighbors and friends can come over for dinner for a fraction of what it will cost society for eating out.

Those conspicuous consumption costs represent labor expended and resources consumed. Thus the savings possible translate into shorter workweeks, greater free time, and more socialization even as pressure is taken off of resources and the environment.

Communal recreation centers must form to maintain the interaction between all citizens as is already well developed within retirement or communitarian communities.

The equality goals of socialist or communitarian philosophy are attained and all while retaining the efficiencies of honest capitalism.

The simple history of how our unequal property rights laws evolved

For 20 years we in the Institute for Economic Democracy have been documenting the massive inefficiency and waste of labor and resources within the aristocratically structured American economy.

How did such an inefficient economy evolve? Visualize a fertile valley 10,000 years ago with fruits, nuts and vegetables growing wild along with lush thatch for building shelters.

The new settlers have only to pick their food, build their thatch homes, and, once that home is built, relax most of every day.

A cunning cabal form and each lay claim to a part of the land. They make a pact with toughies that they will share the spoils if they protect their unequal and unjust “property rights.’

The primary cause of poverty among plenty has just been established. The meek, mild, and law abiding now have to share the food they pick with those “owners,” have to build their houses, have to entertain them, and on and on.

Those first unjust claims to nature’s wealth is the foundation of today’s conspicuous consumption within what are termed the middle to upper class today.

Those cunning and now powerful continually expanding their claims to unearned wealth through custom and law became the “property rights laws, as applied to nature’s resources and technologies, denying others their rightful share of what nature offers to all for free,” that is in place today.

It is specifically those unequal property rights laws which create massive wealth for the few and massive poverty for the many today.

The large middle classes sitting between the wealthy and the impoverished give the illusion of an efficient economy. But that is only chance and distinctly an illusion. Massive wealth is ground up within the superstructure of those many monopolies.

Eliminate them, share the remaining productive jobs (roughly half as many hours worked as within today’s monopolized and aristocratically structured economies) and employed labor hours drop by half or more even as all are provided a quality life.

Your property rights laws today, as applied to nature’s resources and technologies, are nothing more than aristocracy’s property rights law, exclusive title to nature’s wealth which she offers to all for free.

We are not talking about personal property built by labor which is properly exclusively owned. We are talking about the wealth of nature which was not produced by labor and should be shared relatively equally by everybody.

Inequality within property rights law motivates privatization

This alerts us as to why the powerstructure is privatizing everything in sight and why costs rise rapidly (frequently doubling) each time a piece of nature or a part of the infrastructure of the economy, such as a highway or bridge, is privatized.

The massive unearned wealth that can be accumulated is the reason efforts are underway to privatize the wealth of nature all over the world as well as highways, other social services and, in America, even Social Security.

When Bolivia’s water system was privatized, costs tripled as services went down. The citizenry revolted, physically took back their water system, prices dropped, services rose rapidly, and the legal structure had to recognize and legitimize that recovery of society’s basic right to water.

Our legal structure developed in various stages the past 800 years and aristocracy proper, the ancestors of current property rights law, developed throughout the previous many millenniums.

But the inequalities within current law, in many forms and in many societies, all go back to a claim to some form of title to nature’s wealth centuries ago. After all, all wealth is processed from nature’s wealth which she offers to all for free.

We are told that monopolies do not exist in the current capitalist market system. That they do exist all around us can be proven by the simplicity of their elimination with the resultant drop in price even as the quality of consumer services and products rise.

Inequality within property rights law is eliminated through a citizenry paying resource (land) rents and bank profits to themselves.

Economic inefficiency and inequality begins with the monopolization (privatization) of nature’s wealth. As these “resources” are offered for free, each is entitled to his or her share.

Efficiency and equality is accomplished by a citizenry paying those rental values to themselves. Those socially-collected funds go right back to the citizenry to operate governments; build highways, water and sewer systems, electric power stations and grids, communication systems, and all other natural monopolies such as railroads.

Along with banking profits (which is also unearned money and discussed next), there are enough socially-collected funds to finance education, health care, and retirements.

The waste within a monopoly capitalist system and the efficiency gains from their elimination already stand out clearly when one realizes these massive unearned funds are available for social needs once society pays those rental values and profits of nature’s wealth to themselves.

All other monopolies within capitalism’s current monopoly structure, including banking, are copies of the principles of exclusive titles to land (nature’s resources).

Like land (resources), money and banking are social technologies understood for centuries. The only labor-created values are a small amount of brick, mortar, and furniture.

Scottish bankers established the cost of banking as covered by one percent interest on loans. Costs of computerized banking are covered by one-half of one percent interest.

When banks go bankrupt, as they are doing today all over the world, the standard procedure is to nationalize them, nurse them back to health, and sell them back to the private sector.

The very act of bankrupt banking systems being consistently healable under social ownership proves that private banking is many times more inefficient than socially-owned and operated banking.

Those efficiency gains within banking, along with that from socially-collected resource rents, provide the funds for operating governments, building infrastructure, funding health care and retirement, and for all other natural monopoly social services as discussed above.

Within other sectors of the economy, our wealth is never taken from us in the first place if monopolization is eliminated

Mechanical and chemical technologies are also a part of nature just waiting to be discovered. Those monopoly profits are collected through stock markets.

By paying inventors well and placing those technologies in the public domain, 85% of the stock markets disappear and those social savings are realized through a 50%, or greater, drop in the price of consumer products.

Organization of health care is a social technology which utilizes mechanical, electrical, and chemical technologies.

Britain’s single-payer health care provides quality care to all its citizens for 43% the per capita cost as in America which has 46 million essentially without health care. The monopolized health care in America stands exposed by those statistics.

Liability insurance on cars is required by law and loans on homes, businesses, and cars require insurance. Within a monopolized market economy, selling insurance, premium collection, and servicing consumes close to 50% of each premium dollar.

Retirement insurance premiums are collected through payroll deductions. Social Security, which is insurance, is provided at a cost of ½ of 1% of premiums paid.

Simply establish a central collection center for all insurance as is done for Social Security and, as proven by that being the cost of group insurance today, operating costs drop to roughly 6% of premiums paid.

The unnecessary cost and waste of the former monopolized market structure stands clearly exposed as the insurance offices all over town are replaced by a central premium-collection and servicing center.

The private collection of unearned resource (land) rents, private banks, 85% of the activities of stock markets, half the charges within the health care industry, and the insurance offices and labor that disappears within the insurance industry, are superstructures of monopolies siphoning massive unearned wealth to monopolists and grinding up roughly 55% of the wealth of a nation in the process.

By restructuring to honest capitalism, that waste disappears and all the world’s citizens can live a life of leisure and pleasure. Thank you.


J. W. Smith

Those crucial 170 words describing an honest, efficient, capitalist economy.Does Anyone have the Ear of President Barack Obama’s Economic Recovery Team?